General Motors Annual Report 2016

Plain-text annual report

Table of ContentsUNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington, DC 20549-1004Form 10-KþANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended December 31, 2016OR¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from to Commission file number 001-34960GENERAL MOTORS COMPANY(Exact name of registrant as specified in its charter)STATE OF DELAWARE27-0756180(State or other jurisdiction ofincorporation or organization)(I.R.S. EmployerIdentification No.) 300 Renaissance Center, Detroit, Michigan48265-3000(Address of principal executive offices)(Zip Code)Registrant’s telephone number, including area code(313) 556-5000Securities registered pursuant to Section 12(b) of the Act:Title of each className of each exchange on which registeredCommon StockNew York Stock Exchange/Toronto Stock ExchangeWarrants (expiring July 10, 2019)New York Stock ExchangeSecurities registered pursuant to Section 12 (g) of the Act: NoneIndicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes þ No ¨Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No þIndicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that theregistrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨Indicate by check mark whether the registrant has submitted electronically and posted on its company Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No ¨Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, indefinitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smallreporting company” in Rule 12b-2 of the Exchange Act. (Check one):Large accelerated filer þ Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company ¨Do not check if a smaller reporting companyIndicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No þThe aggregate market value of the voting stock held by non-affiliates of the registrant (assuming only for purposes of this computation that directors and executive officers may be affiliates) was approximately $44.1billion as of June 30, 2016.As of January 31, 2017 the number of shares outstanding of common stock was 1,497,964,557 shares.DOCUMENTS INCORPORATED BY REFERENCEPortions of the registrant's definitive Proxy Statement related to the Annual Stockholders Meeting to be filed subsequently are incorporated by reference into Part III of this Form 10-K.INDEX PagePART IItem 1.Business1Item 1A.Risk Factors11Item 1B.Unresolved Staff Comments16Item 2.Properties16Item 3.Legal Proceedings16Item 4.Mine Safety Disclosures17PART IIItem 5.Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities17Item 6.Selected Financial Data18Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations18Item 7A.Quantitative and Qualitative Disclosures About Market Risk40Item 8.Financial Statements and Supplementary Data45 Consolidated Income Statements45 Consolidated Statements of Comprehensive Income45 Consolidated Balance Sheets46 Consolidated Statements of Cash Flows47 Consolidated Statements of Equity48 Notes to Consolidated Financial Statements49 Note 1.Nature of Operations and Basis of Presentation49 Note 2.Significant Accounting Policies49 Note 3.Marketable Securities56 Note 4.GM Financial Receivables58 Note 5.Inventories59 Note 6.Equipment on Operating Leases59 Note 7.Equity in Net Assets of Nonconsolidated Affiliates60 Note 8.Property62 Note 9.Acquisition of Business62 Note 10.Goodwill and Intangible Assets63 Note 11.Variable Interest Entities63 Note 12.Accrued and Other Liabilities64 Note 13.Automotive and GM Financial Debt64 Note 14.Pensions and Other Postretirement Benefits67 Note 15.Commitments and Contingencies73 Note 16.Income Taxes78 Note 17.Restructuring and Other Initiatives80 Note 18.Interest Income and Other Non-Operating Income81 Note 19.Stockholders’ Equity and Noncontrolling Interests81 Note 20.Earnings Per Share82 Note 21.Stock Incentive Plans83 Note 22.Supplementary Quarterly Financial Information (Unaudited)84 Note 23.Segment Reporting84 Note 24.Supplemental Information for the Consolidated Statements of Cash Flows87Item 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure87 PageItem 9A.Controls and Procedures87Item 9B.Other Information88PART IIIItem 10.Directors, Executive Officers and Corporate Governance89Item 11.Executive Compensation89Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters89Item 13.Certain Relationships and Related Transactions and Director Independence89Item 14.Principal Accountant Fees and Services89PART IVItem 15.Exhibits90Signatures 93Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESPART IItem 1. BusinessGeneral Motors Company (sometimes referred to as we, our, us, ourselves, the Company, General Motors, or GM) was incorporated as a Delawarecorporation in 2009. We design, build and sell cars, trucks, crossovers and automobile parts worldwide. We also provide automotive financing servicesthrough General Motors Financial Company, Inc. (GM Financial). Except for per share amounts or as otherwise specified, amounts presented within tables arestated in millions.Automotive Our automotive operations meet the demands of our customers through our automotive segments: GM North America (GMNA), GM Europe(GME), GM International Operations (GMIO) and GM South America (GMSA).GM primarily meets the demands of customers in North America with vehicles developed, manufactured and/or marketed under the Buick, Cadillac,Chevrolet and GMC brands. GM primarily meets the demands of customers outside North America with vehicles developed, manufactured and/or marketedunder the Buick, Cadillac, Chevrolet, GMC, Holden, Opel and Vauxhall brands. We also have equity ownership stakes in regional joint ventures (JVs), whichmeet the demands of customers in Asia with vehicles developed, manufactured and/or marketed under the Baojun, Buick, Cadillac, Chevrolet, Jiefang andWuling brands.In addition to the vehicles we sell through our dealer network to retail customers, we also sell vehicles directly or through our dealer network to fleetcustomers, including daily rental car companies, commercial fleet customers, leasing companies and governments. Our customers can obtain a wide range ofaftersale vehicle services and products through our dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories and extendedservice warranties.Competitive Position and Vehicle Sales The principal factors that determine consumer vehicle preferences in the markets in which we operate includeoverall vehicle design, price, quality, available options, safety, reliability, fuel economy and functionality. Market leadership in individual countries inwhich we compete varies widely. We present both wholesale and retail vehicle sales data to assist in the analysis of our revenue and our market share.Wholesale vehicle sales data, which represents sales directly to dealers and others, including sales to fleet customers, is the measure that correlates to ourrevenue from the sale of vehicles, which is the largest component of Automotive net sales and revenue. Wholesale vehicle sales exclude vehicles sold byjoint ventures. In the year ended December 31, 2016, 46.3% of our wholesale vehicle sales volume was generated outside the U.S. The following tablesummarizes total wholesale vehicle sales of new vehicles by automotive segment (vehicles in thousands): Years ended December 31, 2016 2015 2014GMNA3,958 63.4% 3,558 60.5% 3,320 55.0%GME1,162 18.6% 1,127 19.2% 1,172 19.4%GMIO559 8.9% 588 10.0% 655 10.9%GMSA568 9.1% 603 10.3% 886 14.7%Worldwide6,247 100.0% 5,876 100.0% 6,033 100.0%Retail vehicle sales data, which represents sales to end customers based upon the good faith estimates of management, including sales to fleet customers,does not correlate directly to the revenue we recognize during the period. However retail vehicle sales data is indicative of the underlying demand for ourvehicles. Market share information is based primarily on retail vehicle sales volume. In countries where retail vehicle sales data is not readily available otherdata sources, such as wholesale or forecast volumes, are used to estimate retail vehicle sales to end customers.Retail vehicle sales data includes all sales by joint ventures on a total vehicle basis, not based on the percentage of ownership in the joint venture. Certainjoint venture agreements in China allow for the contractual right to report vehicle sales of non-GM trademarked vehicles by those joint ventures. Retailvehicle sales data includes vehicles used by dealers under courtesy transportation programs and vehicles sold through the dealer registration channelprimarily in Europe. This sales channel consists primarily of dealer demonstrator, loaner and self-registered vehicles which are not eligible to be sold as newvehicles after being registered by dealers. Certain fleet sales that are accounted for as operating leases are included in retail vehicle sales at the time ofdelivery to daily rental car companies. The following table summarizes total industry retail sales, or estimated sales where retail sales volume is not available,of vehicles and our related competitive position by geographic region (vehicles in thousands):1Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES Years Ended December 31, 2016 2015 2014 Industry GM MarketShare Industry GM MarketShare Industry GM MarketShareNorth America United States17,882 3,043 17.0% 17,854 3,082 17.3% 16,859 2,935 17.4%Other3,989 587 14.7% 3,650 531 14.5% 3,375 478 14.2%Total North America21,871 3,630 16.6% 21,504 3,613 16.8% 20,234 3,413 16.9%Europe United Kingdom3,121 289 9.3% 3,063 312 10.2% 2,845 305 10.7%Germany3,709 260 7.0% 3,540 244 6.9% 3,357 237 7.1%Other13,379 658 4.9% 12,704 620 4.9% 12,503 719 5.7%Total Europe(a)20,209 1,207 6.0% 19,307 1,176 6.1% 18,705 1,261 6.7%Asia/Pacific, Middle East and Africa China(b)28,270 3,914 13.8% 25,050 3,730 14.9% 24,035 3,540 14.7%Other18,905 673 3.6% 19,527 795 4.1% 19,722 840 4.3%Total Asia/Pacific, Middle East and Africa47,175 4,587 9.7% 44,577 4,525 10.2% 43,757 4,380 10.0%South America Brazil2,048 346 16.9% 2,568 388 15.1% 3,498 579 16.6%Other1,623 238 14.6% 1,616 257 15.9% 1,815 299 16.5%Total South America3,671 584 15.9% 4,184 645 15.4% 5,313 878 16.5%Total Worldwide(c)92,926 10,008 10.8% 89,572 9,959 11.1% 88,009 9,932 11.3%United States Cars6,895 890 12.9% 7,483 931 12.4% 7,617 1,085 14.2%Trucks5,464 1,325 24.2% 5,181 1,274 24.6% 4,754 1,113 23.4%Crossovers5,523 828 15.0% 5,190 877 16.9% 4,488 737 16.4%Total United States17,882 3,043 17.0% 17,854 3,082 17.3% 16,859 2,935 17.4%China(b) SGMS 1,806 1,711 1,710 SGMW and FAW-GM 2,108 2,019 1,830 Total China28,270 3,914 13.8% 25,050 3,730 14.9% 24,035 3,540 14.7%__________(a)Our Europe sales include Opel and Vauxhall sales of 1,159, 1,113 and 1,078, and market share of 5.7%, 5.8% and 5.8% in the years ending December 31, 2016, 2015 and2014.(b)Our China sales include the Automotive China JVs SAIC General Motors Sales Co., Ltd. (SGMS), SAIC GM Wuling Automobile Co., Ltd. (SGMW) and FAW-GM LightDuty Commercial Vehicle Co., Ltd. (FAW-GM). Wholesale volumes were used for Industry, GM and Market Share. Our retail sales in China were 3,871, 3,613 and 3,435 inthe years ended December 31, 2016, 2015 and 2014. In 2017, we will begin using vehicle registrations data as the basis for calculating industry volume and market share inChina on a prospective basis.(c)We do not currently export vehicles to Cuba, Iran, North Korea, Sudan or Syria. Accordingly these countries are excluded from industry sales data and correspondingcalculation of market share.In the year ended December 31, 2016 we estimate we had the largest market share in North America and South America, the number three market share inthe Asia/Pacific, Middle East and Africa region, which included the number two market share in China, and the number eight market share in Europe. In theyear ended December 31, 2016 the Asia/Pacific, Middle East and Africa region was our largest region by retail vehicle sales volume and represented 45.8% ofour global retail vehicle sales. Refer to the Overview in Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)for discussion on changes in market share by region.2Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESThe sales and market share data provided in the table above includes both fleet vehicle sales and sales to retail customers. Certain fleet transactions,particularly sales to daily rental car companies, are generally less profitable than sales to retail customers. A significant portion of the sales to daily rental carcompanies are recorded as operating leases under U.S. GAAP with no recognition of revenue at the date of initial delivery due to guaranteed repurchaseobligations. The following table summarizes estimated fleet sales and those sales as a percentage of total retail vehicle sales (vehicles in thousands): Years Ended December 31, 2016 2015 2014GMNA707 795 814GME551 544 505GMIO369 345 414GMSA157 121 176Total fleet sales1,784 1,805 1,909 Fleet sales as a percentage of total retail vehicle sales17.8% 18.1% 19.2%The following table summarizes U.S. fleet sales (vehicles in thousands): Years Ended December 31, 2016 2015 2014Daily rental sales327 400 449Other fleet sales269 278 255Total fleet sales596 678 704Fleet sales as a percentage of total U.S. retail vehicle sales Cars24.9% 29.3% 29.5%Trucks19.2% 19.7% 21.8%Crossovers14.6% 17.5% 19.1%Total vehicles19.6% 22.0% 24.0%Product Pricing Several methods are used to promote our products, including the use of dealer, retail and fleet incentives such as customer rebates andfinance rate support. The level of incentives is dependent in large part upon the level of competition in the markets in which we operate and the level ofdemand for our products. In 2017 we plan to continue to price vehicles competitively, including offering incentives as required. We believe this strategy,coupled with sound inventory management, will continue to strengthen our brands.Cyclical Nature of Business Retail sales are cyclical and production varies from month to month. Vehicle model changeovers occur throughout the year asa result of new market entries. The market for vehicles depends on general economic conditions, credit availability and consumer spending.Relationship with Dealers We market vehicles worldwide primarily through a network of independent authorized retail dealers. These outlets includedistributors, dealers and authorized sales, service and parts outlets.The following table summarizes the number of authorized dealerships: December 31, 2016 December 31, 2015 December 31, 2014GMNA4,857 4,886 4,908GME6,104 6,330 6,633GMIO7,232 7,755 7,699GMSA1,259 1,281 1,272Total worldwide19,452 20,252 20,512We and our joint ventures enter into a contract with each authorized dealer agreeing to sell to the dealer one or more specified product lines at wholesaleprices and granting the dealer the right to sell those vehicles to retail customers from an approved3Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESlocation. Our dealers often offer more than one GM brand at a single dealership in a number of our markets in order to enhance dealer profitability.Authorized dealers offer parts, accessories, service and repairs for GM vehicles in the product lines that they sell using GM parts and accessories. Our dealersare authorized to service GM vehicles under our limited warranty program and those repairs are made only with GM parts. Our dealers generally provide theircustomers with access to credit or lease financing, vehicle insurance and extended service contracts provided by GM Financial and other financialinstitutions.The quality of GM dealerships and our relationship with our dealers and distributors are critical to our success as dealers maintain the primary sales andservice interface with the end consumer of our products. In addition to the terms of our contracts with our dealers we are regulated by various country andstate franchise laws that may supersede those contractual terms and impose specific regulatory requirements and standards for initiating dealer networkchanges, pursuing terminations for cause and other contractual matters.Research, Product and Business Development and Intellectual Property Costs for research, manufacturing engineering, product engineering and designand development activities relate primarily to developing new products or services or improving existing products or services including activities related tovehicle emissions control, improved fuel economy, the safety of drivers and passengers, urban mobility and autonomous vehicles. In the years endedDecember 31, 2016, 2015 and 2014 research and development expenses were $8.1 billion, $7.5 billion and $7.4 billion.Product Development The Product Development organization is responsible for designing and integrating vehicle and powertrain components tomaximize part sharing across multiple vehicle segments. Global teams in Design, Program Management, Component & Subsystem Engineering, ProductIntegrity, Safety, Propulsion and Purchasing & Supply Chain collaborate to meet customer requirements and maximize global economies of scale.Our global vehicle architecture development has been consolidated and headquartered at our Global Technical Center in Warren, Michigan, to further thestandardization of our overall vehicle development process. Cross-segment part sharing is an essential enabler to our Vehicle Set Strategy, designed to reduceour overall number of global vehicle architectures to four major vehicle sets. As we implement the four vehicle sets, we will continue to leverage our currentarchitecture portfolio to accommodate our customers around the world while achieving our financial goals.Hybrid, Plug-In, Extended Range and Battery Electric Vehicles We are investing in multiple technologies offering increasing levels of vehicleelectrification including eAssist, plug-in hybrid, full hybrid, extended range and battery electric vehicles. We currently offer six models in the U.S. featuringsome form of electrification and continue to develop plug-in hybrid electric vehicle technology and extended range electric vehicles such as the ChevroletVolt. In 2016 we began production and sales of the Chevrolet Bolt EV, which provides an EPA-rated 238 miles of range on a full charge.Car- and Ride-Sharing In 2016, we executed several steps in our strategy to redefine personal mobility. In January 2016 we announced a new car-sharingservice called Maven, which combines our multiple car-sharing programs under a single brand. Maven gives customers access to highly personalized, on-demand mobility services. During 2016 we expanded our Maven offerings to 16 cities across the U.S. In January 2016 we also purchased a 9% equityownership interest in Lyft, Inc. (Lyft), a privately held company, for $0.5 billion. In March 2016 we announced a new program called Express Drive, whichleverages our Lyft relationship to expand our ride-sharing offerings. Under the Express Drive program, Lyft drivers in multiple cities across the U.S. can rentGeneral Motors vehicles on a weekly basis. We are also considering additional options to expand our ride-sharing offerings. In November 2016 weannounced that we are partnering with Uber Technologies Inc. (Uber) to pilot a program under which Uber drivers can rent General Motors vehicles on aweekly basis. Additionally, we plan to develop an integrated network of on-demand autonomous vehicles in the U.S.Autonomous Technology We see autonomous technology leading to significant advances in convenience, mobility and safety, since more than 90% ofcrashes are caused by driver error. We have millions of miles of real-world experience with embedded connectivity through OnStar, LLC (OnStar) andadvanced safety features that are the building blocks to more advanced automation features that we believe will eventually lead to fully autonomousvehicles. An example of advanced automation is Super Cruise, a hands-free driving customer convenience feature that will debut in 2017 on the CadillacCT6 sedan.In May 2016 we acquired all of the outstanding capital stock of Cruise Automation Inc. (Cruise), an autonomous vehicle technology company, to furtheraccelerate our development of autonomous vehicles. We are also actively testing autonomous vehicles on public roads in San Francisco, California,Scottsdale, Arizona and Warren, Michigan.4Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESAlternative Fuel Vehicles We believe alternative fuels offer significant potential to reduce petroleum consumption in the transportation sector. Byleveraging experience and capability developed around these technologies in our global operations we continue to develop FlexFuel vehicles that can runon gasoline-ethanol blend fuels as well as vehicles that run on compressed natural gas (CNG) and liquefied petroleum gas (LPG).We currently offer 11 FlexFuel vehicles in the U.S. for the 2017 model year to retail customers plus an additional seven models to fleet and commercialcustomers capable of operating on gasoline, E85 ethanol or any combination of the two. In Brazil a substantial majority of vehicles sold were FlexFuelvehicles capable of running on 100% ethanol blends. We also market FlexFuel vehicles in other global markets where biofuels have emerged in themarketplace. In addition, we are studying ethanol-based fuels as well as other high-octane fuel blends and the role they can play in maximizing efficienciesof future internal combustion engine technology development to meet the escalating fuel economy and greenhouse gas emission regulations in the U.S. andother markets.We produce CNG bi-fuel capable vehicles in Europe such as the Opel Zafira Tourer and the Opel Combo van. In the U.S. we are developing a program tooffer a wide selection of truck and van options through a specialty vehicle manufacturing program, operating on CNG or LPG, which are suitable for fleet andcommercial applications and retail customers alike. Availability is scheduled to begin in 2017. Globally, we offer CNG and LPG capable vehicles in selectmarkets reflecting the infrastructure, regulatory focus and natural resource availability of the markets in which they are sold. We support the development ofbiodiesel blend fuels, which are alternative diesel fuels produced from renewable sources.Hydrogen Fuel Cell Technology As part of our long-term strategy to reduce petroleum consumption and greenhouse gas emissions we are committed todevelopment of our hydrogen fuel cell technology. Our Chevrolet Equinox fuel cell electric vehicle demonstration programs, such as Project Driveway, haveaccumulated more than 3 million miles of real-world driving by consumers, celebrities, business partners and government agencies. These programs arehelping us identify consumer and infrastructure needs to understand the business case for potential production of vehicles with this technology. We areexploring non-traditional automotive uses for fuel cells in several areas, including demonstrations with the U.S. Army and U.S. Navy.We signed a co-development agreement with Honda Motor Company in October 2016 for a next-generation fuel cell system and hydrogen storagetechnologies, aiming for the 2020 timeframe for commercialization. The collaboration expects to succeed by sharing expertise, economies of scale andcommon sourcing strategies and builds upon GM's and Honda Motor Company's strengths as leaders in hydrogen fuel cell technology.Fuel Efficiency We are committed to improving fuel efficiency and meeting regulatory standards through a combination of strategies including:(1) extensive technology improvements to conventional powertrains; (2) increased use of smaller displacement engines and improved and advancedautomatic transmissions; and (3) vehicle improvements including increased use of lighter, front-wheel drive architectures.OnStar OnStar is a wholly-owned subsidiary of GM serving more than 7.2 million subscribers in the U.S., Canada, Mexico, China (through a joint venture),South America and Europe. OnStar is a provider of connected safety, security and mobility solutions and advanced information technology and is availableon the majority of our 2017 model year vehicles. OnStar's key services include automatic crash response, stolen vehicle assistance, remote door unlock, turn-by-turn navigation, vehicle diagnostics, hands-free calling and 4G LTE wireless connectivity.Intellectual Property We generate and hold a significant number of patents in a number of countries in connection with the operation of our business.While none of these patents are individually material to our business as a whole, these patents are important to our operations and continued technologicaldevelopment. We hold a number of trademarks and service marks that are very important to our identity and recognition in the marketplace.Raw Materials, Services and Supplies We purchase a wide variety of raw materials, parts, supplies, energy, freight, transportation and other services fromnumerous suppliers to manufacture our products. The raw materials primarily include steel, aluminum, resins, copper, lead and platinum group metals. Wehave not experienced any significant shortages of raw materials and normally do not carry substantial inventories of such raw materials in excess of levelsreasonably required to meet our production requirements.In some instances, we purchase systems, components, parts and supplies from a single source and may be at an increased risk for supply disruptions. Theinability or unwillingness of these sources to supply us with parts and supplies could have a material adverse effect on our production capacity. Refer to Item1A. Risk Factors for further discussion of these risks. Combined purchases5Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESfrom our two largest suppliers have ranged from approximately 11% to 12% of our total purchases in the years ended December 31, 2016, 2015 and 2014.Environmental and Regulatory MattersAutomotive Emissions Control We are subject to laws and regulations that require us to control automotive emissions, including vehicle exhaust emissionstandards, vehicle evaporative emission standards and onboard diagnostic (OBD) system requirements. Advanced OBD systems are used to identify anddiagnose problems with emission control systems. Problems detected by the OBD system and in-use compliance monitoring may increase warranty costs andthe likelihood of recall. Emission and OBD requirements become more stringent each year as vehicles must meet lower emission standards and newdiagnostics are required throughout the world with very little harmonization of global regulations. Zero emission vehicle (ZEV) requirements have beenadopted by some U.S. states as well as the Canadian Province of Quebec and there is the possibility that additional jurisdictions could adopt ZEVrequirements in the future. While we believe all our products are designed and manufactured in material compliance with substantially all vehicle emissionsrequirements, regulatory authorities may conduct ongoing evaluations of the emissions compliance of products from all manufacturers. This includes vehicleemissions testing, including CO2 and nitrogen oxide emissions testing, and review of emission control strategies.The U.S. federal government imposes stringent emission control requirements on vehicles sold in the U.S. and various state governments impose additionalrequirements. Canada’s federal government vehicle emission requirements are generally aligned with the U.S. federal requirements. Each model year we mustobtain certification for each test group that our vehicles will meet emission requirements from the U.S. Environmental Protection Agency (EPA) before we cansell vehicles in the U.S. and Canada and from the California Air Resources Board (CARB) before we can sell vehicles in California and other states that haveadopted the California emissions requirements.CARB's latest emission requirements include more stringent exhaust emission and evaporative emission standards including an increase in ZEVs whichmust be offered for sale in California. CARB has adopted 2018 model year and later requirements for increasing volumes of ZEVs to achieve greenhouse gasas well as criteria pollutant emission reductions to help achieve the state's long-term greenhouse gas reduction goals. The EPA has adopted similar exhaustemission and evaporative emission standards which phase in with the 2017 model year, but do not include ZEV requirements. These new requirements willalso increase the time and mileage periods over which manufacturers are responsible for a vehicle's emission performance.The Clean Air Act permits states that have areas with air quality compliance issues to adopt the California car and light-duty truck emission standards inlieu of the federal requirements. Thirteen states currently have these standards in effect and 10 of these 13 states have adopted the ZEV requirements.Emissions in the European Union are regulated by the European Commission (EC) and by governmental authorities in each European Union Member State(EU Member States). The EC imposes emission control requirements on vehicles sold in all 28 EU Member States. We must demonstrate that vehicles willmeet emission requirements from an approval authority in one EU Member State before we can sell vehicles in any EU Member State. The regulatoryrequirements include random testing of newly assembled vehicles and a manufacturer in-use surveillance program. The European Union requirements areequivalent in terms of stringency and implementation to the framework of the United Nations Economic Commission for Europe.The existing level of European Union exhaust emission standards for cars and light-duty trucks, Euro 6, was effective in 2014 for new vehicle approvalsand 2015 for new vehicle registrations. Future emission standards focus particularly on further reducing emissions from diesel vehicles by introducing newtesting criteria based on “real world driving” emissions (RDE). RDE tests will become effective in 2017. The new requirements will require additionaltechnologies and further increase the cost of diesel engines, which currently cost more than gasoline engines to manufacture. To comply with RDE tests webelieve it will be necessary to implement technologies which will introduce additional cost pressures on the already challenging European Union market forsmall and mid-size diesel vehicles. Declines in diesel penetration may make fleet CO2 compliance more challenging. Gasoline engines are also affected bythe new requirements. The potential implementation of technology into gasoline vehicles to reduce exhaust pollutant emissions may further increase the costof gasoline engines and could have adverse effects on vehicle fuel economy.In addition, increased scrutiny of compliance with emissions standards may result in changes to these standards, including the implementation of RDEtests, as well as stricter interpretations or redefinition of these standards and more rigorous enforcement. This may lead to increased costs, penalties, lack ofcertainty with respect to product portfolio planning, negative publicity or reputation impact for us. Refer to Item 1A. Risk Factors for further discussion ofthese risks.6Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESIn the long-term, we expect that the EC will continue devising regulatory requirements on the emission test cycle, RDE, low temperature testing, fuelevaporation and OBD.China has implemented European type China 4 standards nationally with European OBD requirements for new vehicle registrations. Cities such as Beijing,Shanghai and Guangzhou each currently require China 5 standards for new vehicle registrations. China implemented the China 5 standards for light dutygasoline nationwide at the beginning of 2017. The China 5 standards include more stringent emission requirements and increase the time and mileageperiods over which manufacturers are responsible for a vehicle's emission performance. China officially released a unique China 6 emission standard with thepotential to combine elements of both European and U.S. standards. Local implementation is expected as early as 2018. Nationwide implementation for newregistrations is expected in July 2020 for the base China 6a standard and July 2023 for the more stringent China 6b standard.In South America certain countries follow the U.S. test procedures, standards and OBD requirements and others follow the European Union test procedures,standards and OBD requirements with different levels of stringency. Brazil implemented national L6 standards for light diesel vehicles in 2012 and OBDinstallation for light diesel vehicles in 2015. L6 standards for light gasoline vehicles were implemented in 2015 for all models.Automotive Fuel Economy In the U.S., Corporate Average Fuel Economy (CAFE) reporting is required for three separate fleets: domestically producedcars, imported cars and light-duty trucks. Both car and light-duty truck standards were established using targets for various vehicle sizes and vehicle modelsales volumes. In 2017 our domestic car standard is estimated to be 38.1 mpg, our import car standard is estimated to be 41.7 mpg, and our light-duty truckstandard is estimated to be 27.6 mpg. Our current product plan is expected to be compliant with the federal CAFE program through the 2017 model year. Inaddition to federal CAFE reporting, the EPA requires compliance with greenhouse gas requirements that are similar to the CAFE program. Our current productplan is expected to be compliant with the federal greenhouse gas program through the 2017 model year. CARB has agreed that compliance with the federalprogram is deemed to be compliant with the California program for the 2012 through 2017 model years. Although Canada has no parallel CAFE-style fueleconomy regulations there are Canadian greenhouse gas regulations that are aligned with the U.S. EPA regulations and Canadian fleets are expected to becompliant with these regulations through the 2017 model year. We regularly evaluate our current and future product plans and strategies for compliance withfuel economy and greenhouse gas regulations.Unlike other jurisdictions, the European Union's climate change policy framework focuses on fleet average CO2 emissions rather than fuel economy. TheEuropean Union has implemented legislation regulating fleet average CO2 emissions in Europe and has adopted an even more stringent fleet average CO2target for 2020. Requirements must be met through the introduction of CO2 reducing technologies on conventional gasoline and diesel engines or throughultra-low CO2 vehicles. We are developing a compliance plan by adopting operational CO2 targets for each market entry in Europe. The EC will also deviseregulatory requirements on the CO2 emission test cycle as of 2017.China has both an individual vehicle pass-fail type approval requirement based on Phase 3 standards and a fleet fuel consumption requirement based onPhase 4 standards effective in 2016. The China Phase 4 fleet fuel consumption standard is based on curb weight with full compliance to 5.0 L/100 kmrequired by 2020. China has continued subsidies for plug-in hybrid, battery electric and fuel cell vehicles. China proposes a Phase 5 fleet fuel consumptionstandard effective beginning in 2021 with full compliance to 4.0L/100km required by 2025.In Brazil the government has set fuel economy requirements called Inovar Auto. Original equipment manufacturers have mandatory fleet averagecompliance required by October 2017 resulting in a reduction from 2012 levels. The Brazilian government provides indirect tax incentives to eligibleparticipant companies that meet certain requirements including these fuel economy targets. The level of potential indirect tax incentives varies based on thetiming and degree to which the targets are met. Participating companies that fail to meet the required criteria are subject to clawback provisions and specificfines.Industrial Environmental Control Our operations are subject to a wide range of environmental protection laws including those regulating air emissions,water discharge, waste management and environmental cleanup. Certain environmental statutes require that responsible parties fund remediation actionsregardless of fault, legality of original disposal or ownership of a disposal site. Under certain circumstances these laws impose joint and several liability aswell as liability for related damages to natural resources.To mitigate the effects our worldwide operations have on the environment and reduce greenhouse gas emissions associated with waste disposal, we arecommitted to converting as many of our worldwide operations as possible to landfill-free operations. At December 31, 2016, 100 (or approximately 60%) ofour manufacturing operations were landfill-free. Additionally we have 527Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESnon-manufacturing operations that are landfill-free. At our landfill-free manufacturing operations approximately 90% of waste materials are reused orrecycled and approximately 10% are converted to energy at waste-to-energy facilities. Including construction, demolition and remediation wastes, weestimate that we reused, recycled or composted over 2.5 million metric tons of waste materials at our global manufacturing operations, converted over137,000 metric tons of waste materials to energy at waste-to-energy facilities and avoided approximately 9 million metric tons of greenhouse gas emissionsin the year ended December 31, 2016.In addition to minimizing our impact on the environment our landfill-free program and total waste reduction commitments generate revenue from the saleof production by-products, reduce our use of material, reduce our carbon footprint and help to reduce the risks and financial liabilities associated with wastedisposal.We continue to search for ways to increase our use of renewable energy and improve our energy efficiency and work to drive growth and scale ofrenewables. We have committed to meeting the electricity needs of our operations worldwide with renewable energy by 2050. At December 31, 2016 we hadimplemented projects globally that had increased our total renewable energy capacity to over 167 megawatts. In 2016 we also met the EPA Energy StarChallenge for Industry (EPA Challenge) at 12 of our sites globally by reducing energy intensity an average of 18% at these sites. To meet the EPA Challengeindustrial sites must reduce energy intensity by 10% in five years or fewer. Two of the sites achieved the goal for the first time, bringing the total number ofGM-owned sites to have met the EPA Challenge to 75, with many sites achieving the goal multiple times. These efforts minimize our utility expenses and arepart of our approach to addressing climate change through setting a greenhouse gas emissions reduction target, collecting accurate data, following ourbusiness plan and publicly reporting progress against our target.Chemical Regulations We continually monitor the implementation of chemical regulations to maintain compliance and evaluate their effect on ourbusiness, suppliers and the automotive industry.Governmental agencies in both the U.S. and Canada continue to introduce new regulations and legislation related to the selection and use of chemicals orsubstances of concern by mandating broad prohibitions, green chemistry, life cycle analysis and product stewardship initiatives. These initiatives give broadregulatory authority to ban or restrict the use of certain chemical substances and potentially affect automobile manufacturers' responsibilities for vehiclecomponents at the end of a vehicle's life, as well as chemical selection for product development and manufacturing. Chemical restrictions in Canada areprogressing rapidly as a result of Environment Canada’s Chemical Management Plan to assess existing substances and implement risk management controlson any chemical deemed toxic. In June 2016, the U.S. enacted the Chemical Safety for the 21st Century Act that grants the EPA more authority to regulateand ban chemicals from use in the U.S. and is expected to increase the level of regulation of chemicals in vehicles. These emerging regulations willpotentially lead to increases in costs and supply chain complexity. We believe that we are materially in compliance with substantially all of theserequirements or expect to be materially in compliance by the required date.In 2007 the European Union implemented its regulatory requirements, the EU REACH regulation among others, to register, evaluate, authorize and restrictthe use of chemical substances. This regulation requires chemical substances manufactured in or imported into the European Union to be registered with theEuropean Chemicals Agency before 2018. Under this regulation, “substances of very high concern” may either require authorization for further use or may berestricted in the future. This could potentially increase the cost of certain alternative substances that are used to manufacture vehicles and parts, or result in asupply chain disruption when a substance is no longer available to meet production timelines. Our research and development initiatives may be used toaddress future requirements. We believe that we are materially in compliance with substantially all of these requirements or expect to be materially incompliance by the required date.There are various regulations in China stipulating the requirements for chemical management. Among other things, these regulations catalogue and restrictthe use and the import and export of various chemical substances. The failure of our joint venture partners or our suppliers to comply with these regulationscould disrupt production in China or prevent our joint venture partners from selling the affected products in the China market.Safety In the U.S. the National Traffic and Motor Vehicle Safety Act of 1966 prohibits the sale of any new vehicle or equipment in the U.S. that does notconform to applicable vehicle safety standards established by the National Highway Traffic Safety Administration (NHTSA). If we or NHTSA determine thateither a vehicle or vehicle equipment does not comply with a safety standard or if a vehicle defect creates an unreasonable safety risk the manufacturer isrequired to notify owners and provide a remedy. We are required to report certain information relating to certain customer complaints, warranty claims, fieldreports and notices and claims involving property damage, injuries and fatalities in the U.S. and claims involving fatalities outside the U.S. We are alsorequired to report certain information concerning safety recalls and other safety campaigns outside the U.S.8Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESOutside the U.S. safety standards and recall regulations often have the same purpose as the U.S. standards but may differ in their requirements and testprocedures, adding complexity to regulatory compliance.Automotive Financing - GM Financial GM Financial is our global captive automotive finance company and our global provider of automobile financesolutions. GM Financial conducts its business in North America, Europe, South America and through a joint venture in China.GM Financial provides retail loan and lease lending across the credit spectrum. Additionally GM Financial offers commercial products to dealers thatinclude new and used vehicle inventory financing, inventory insurance, working capital, capital improvement loans, and storage center financing.In North America GM Financial's retail automobile finance programs include prime and sub-prime lending and full credit spectrum leasing. The sub-primelending program is primarily offered to consumers with FICO scores less than 620 who have limited access to automobile financing through banks and creditunions and is expected to sustain a higher level of credit losses than prime lending. The leasing product is offered through our franchised dealers andprimarily targets prime consumers leasing new vehicles. GM Financial has expanded its leasing, near prime and prime lending programs through ourfranchised dealers, and as a result, leasing and prime lending have become a larger percentage of originations and the retail portfolio balance.Internationally GM Financial’s retail automobile finance programs focus on prime quality financing through loan and lease products.Generally GM Financial seeks to fund its operations in each country through local sources to minimize currency and country risk. GM Financial primarilyfinances its loan, lease and commercial origination volume through the use of secured and unsecured credit facilities, through securitization transactionswhere such markets are developed and through the issuance of unsecured debt in public markets including accepting deposits from retail banking customersin Germany.Employees At December 31, 2016 we employed 135,000 (60%) hourly employees and 90,000 (40%) salaried employees. At December 31, 2016 55,000(53%) of our U.S. employees were represented by unions, a majority of which were represented by the International Union, United Automobile, Aerospaceand Agriculture Implement Workers of America (UAW). The following table summarizes worldwide employment (in thousands): December 31, 2016 December 31, 2015 December 31, 2014GMNA124 115 110GME38 36 37GMIO32 32 33GMSA22 24 29GM Financial9 8 7Total Worldwide225 215 216 U.S. - Salaried50 45 40U.S. - Hourly55 52 51Executive Officers of the Registrant As of February 7, 2017 the names and ages of our executive officers and their positions with GM are as follows:9Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESName (Age) Present GM Position (Effective Date) Positions Held During the Past Five Years (Effective Date)Mary T. Barra (55) Chairman & Chief Executive Officer (2016) Chief Executive Officer and Member of the Board of Directors (2014) ExecutiveVice President, Global Product Development, Purchasing & Supply Chain (2013)Senior Vice President, Global Product Development (2011)Daniel Ammann (44) President (2014) Executive Vice President & Chief Financial Officer (2013)Senior Vice President & Chief Financial Officer (2011)Alan S. Batey (53) Executive Vice President & President, NorthAmerica (2014) Senior Vice President, Global Chevrolet and Brand Chief and U.S. Sales andMarketing (2013)GM Vice President, U.S. Sales and Service, and Interim GM Chief MarketingOfficer (2012)Vice President, U.S. Chevrolet Sales and Service (2010)Alicia Boler-Davis (47) Executive Vice President, GlobalManufacturing (2016) Senior Vice President, Global Connected Customer Experience (2014)Vice President, Global Quality and U.S. Customer Experience (2012)Carel Johannes de Nysschen (56) Executive Vice President & President,Cadillac (2014) Infiniti Motor Company, President (2012)Audi of America, Inc., President (2004)Barry L. Engle (53) Executive Vice President & President, SouthAmerica (2015) Agility Fuel Systems, CEO (2011)Stefan Jacoby (58) Executive Vice President & President, GMInternational (2013) Volvo Car Corporation - Global Chief Executive Officer and President (2010)Craig B. Glidden (59) Executive Vice President & General Counsel(2015) LyondellBasell, Executive Vice President and Chief Legal Officer (2009)Karl-Thomas Neumann (55) Executive Vice President & President, Europeand Chairman of the Management Board ofOpel Group GmbH (2013) CEO, Opel Group GmbH & President, GM Europe (2013)Volkswagen Group China - Chief Executive Officer and President (2010)John J. Quattrone (64) Senior Vice President, Global HumanResources (2014) VP of Human Resources, Global Product Development & Global Purchasing &Supply Chain / Corporate Strategy, Business Development & Global Planning &Program organizations (2009)Mark L. Reuss (53) Executive Vice President, Global ProductDevelopment, Purchasing & Supply Chain(2014) Executive Vice President & President, North America (2013)GM Vice President & President, North America (2009)Charles K. Stevens, III (57) Executive Vice President & Chief FinancialOfficer (2014) Chief Financial Officer, GM North America (2010)Interim Chief Financial Officer, GM South America (2011)Matthew Tsien (56) Executive Vice President & President, GMChina (2014) GM Consolidated International Operations Vice President, Planning, ProgramManagement, & Strategic Alliances China (2012)Executive Vice President, SAIC GM Wuling (2009)Thomas S. Timko (48) Vice President, Controller & ChiefAccounting Officer (2013) Applied Materials Inc. - Corporate Vice President, Chief Accounting Officer, andCorporate Controller (2010)There are no family relationships between any of the officers named above and there is no arrangement or understanding between any of the officers namedabove and any other person pursuant to which he or she was selected as an officer. Each of the officers named above was elected by the Board of Directors tohold office until the next annual election of officers and until his or her successor is elected and qualified or until his or her earlier resignation or removal.The Board of Directors elects the officers immediately following each annual meeting of the stockholders and may appoint other officers between annualmeetings.Segment Reporting Data Operating segment data and principal geographic area data for the years ended December 31, 2016, 2015 and 2014 are summarizedin Note 23 to our consolidated financial statements.Website Access to Our Reports Our internet website address is www.gm.com. In addition to the information about us and our subsidiaries contained in this2016 Form 10-K information about us can be found on our website including information on our corporate governance principles and practices. Our InvestorRelations website at www.gm.com/investors contains a significant amount of information about us, including financial and other information for investors.We encourage investors to visit our website,10Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESas we frequently update and post new information about our company on our website and it is possible that this information could be deemed to be materialinformation. Our website and information included in or linked to our website are not part of this 2016 Form 10-K.Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuantto Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (Exchange Act) are available free of charge through our website as soon asreasonably practicable after they are electronically filed with or furnished to the Securities and Exchange Commission (SEC). The public may read and copythe materials we file with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, DC 20549. The public may obtain information onthe operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Additionally the SEC maintains an internet site that contains reports,proxy and information statements and other information. The address of the SEC's website is www.sec.gov.* * * * * * *Item 1A. Risk FactorsWe face a number of significant risks and uncertainties in connection with our operations. Our business and the results of our operations could bematerially adversely affected by the factors described below. The risks described below are not the only risks facing our operations. Risks and uncertaintiesnot currently known to us or that we currently deem to be immaterial also could have a material adverse impact on our business and results of operations.If we do not deliver new products, services and customer experiences in response to new participants in the automotive industry, our business couldsuffer. We believe that the automotive industry will experience significant and continued change in the coming years. In addition to our traditionalcompetitors, we must also be responsive to the entrance of non-traditional participants in the automotive industry. These non-traditional participants mayseek to disrupt the historic business model of the industry through the introduction of new technologies, new products or services, new business models ornew methods of travel. It is strategically significant that we lead the technological disruption occurring in our industry. As our business evolves, the pressureto innovate will encompass a wider range of products and services, including products and services that may be outside of our historically core business, suchas autonomous vehicles, car- and ride-sharing and transportation as a service. If we do not accurately predict, prepare for and respond to new kinds oftechnological innovations, market developments and changing customer needs, our sales, profitability and long-term competitiveness may be harmed.Our ability to maintain profitability is dependent upon our ability to fund and introduce new and improved vehicle models that are able to attract asufficient number of consumers. We operate in a very competitive industry with market participants routinely introducing new and improved vehicle modelsdesigned to meet rapidly evolving consumer expectations. Producing new and improved vehicle models competitively and preserving our reputation fordesigning, building and selling high quality cars and trucks is critical to our long-term profitability. We will launch a substantial number of new vehicles in2017. Successful launches of our new vehicles are critical to our short-term profitability. In addition, our growth strategies require us to make significantinvestment in our brands to appeal to new markets.Our long-term profitability depends upon successfully creating and funding technological innovations in design, engineering and manufacturing, whichrequires extensive capital investment and the ability to retain and recruit talent. In some cases the technologies that we plan to employ are not yetcommercially practical and depend on significant future technological advances by us and by our suppliers. Although we will seek to obtain intellectualproperty protection for our innovations to protect our competitive position, it is possible we may not be able to protect some of these innovations. There canbe no assurance that advances in technology will occur in a timely or feasible way, or that others will not acquire similar or superior technologies sooner thanwe do or that we will acquire technologies on an exclusive basis or at a significant price advantage.It generally takes two years or more to design and develop a new vehicle, and a number of factors may lengthen that time period. Because of this productdevelopment cycle and the various elements that may contribute to consumers’ acceptance of new vehicle designs, including competitors’ productintroductions, technological innovations, fuel prices, general economic conditions and changes in styling preferences, an initial product concept or designmay not result in a vehicle that generates sales in sufficient quantities and at high enough prices to be profitable. Our high proportion of fixed costs, both dueto our significant investment in property, plant and equipment as well as other requirements of our collective bargaining agreements, which limit ourflexibility to adjust personnel costs to changes in demands for our products, may further exacerbate the risks associated with incorrectly assessing demand forour vehicles.11Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESOur profitability is dependent upon the success of full-size pick-up trucks and SUVs. While we offer a balanced and complete portfolio of small, mid-sizeand large cars, crossovers, sport utility vehicles (SUVs) and trucks, we generally recognize higher profit margins on our full-size pick-up trucks and SUVs. Oursuccess is dependent upon consumer preferences and our ability to sell higher margin vehicles in sufficient volumes. Any shift in consumer preferencestoward smaller, more fuel efficient vehicles, whether as a result of increases in the price of oil or any sustained shortage of oil, including as a result of globalpolitical instability or other reasons, could weaken the demand for our higher margin full-size pick-up trucks and SUVs.Our business is highly dependent upon global automobile market sales volume, which can be volatile. Our business and financial results are highlysensitive to sales volume, changes to which can have a disproportionately large effect on our profitability. A number of economic and market conditionsdrive changes in vehicle sales, including real estate values, levels of unemployment, availability of affordable financing, fluctuations in the cost of fuel,consumer confidence, political unrest and global economic conditions. We cannot predict future economic and market conditions with certainty.Our business in China is subject to aggressive competition. Maintaining a strong position in the Chinese market is a key component of our global growthstrategy. The automotive market in China is highly competitive with competition from many of the largest global manufacturers and numerous smallerdomestic manufacturers. As the size of the Chinese market continues to increase we anticipate that additional competitors, both international and domestic,will seek to enter the Chinese market and that existing market participants will act aggressively to increase their market share. Increased competition mayresult in price reductions, reduced margins and our inability to gain or hold market share.The international scale and footprint of our operations exposes us to additional risks. We manufacture, sell and service products globally and rely upon aglobal supply chain to deliver the raw materials, components, systems and parts that we need to manufacture our products. Our global operations subject us toextensive domestic and foreign regulations and expose us to a variety of domestic and foreign political, economic and other risks, including: changes inforeign or domestic government leadership; changes in foreign or domestic laws or regulations impacting our overall business model or restricting our abilityto manufacture, purchase or sell products, and political pressures to change any aspect of our business model or practices and source raw materials,components, systems and parts on competitive terms in a manner consistent with our current practice; changes in domestic or foreign tax laws; economictensions between governments and changes in international trade and investment policies, including restrictions on the repatriation of dividends, especiallybetween the U.S. and China, more detailed inspections, new or higher tariffs, for example, on products imported from Mexico into the U.S.; new barriers toentry or domestic preference procurement requirements, or changes to or withdrawals from free trade agreements; changes in foreign currency exchange ratesand interest rates; economic downturns in foreign countries or geographic regions where we have significant operations, such as China; significant changesin conditions in the countries in which we operate with the effect of competition from new market entrants and in the United Kingdom (U.K.) with passage ofa referendum to discontinue membership in the European Union; differing local product preferences and product requirements, including fuel economy,vehicle emissions and safety; impact of compliance with U.S. and other foreign countries’ export controls and economic sanctions; liabilities resulting fromU.S. and foreign laws and regulations, including those related to the Foreign Corrupt Practices Act and certain other anti-corruption laws; differing laborregulations and union relationships; and difficulties in obtaining financing in foreign countries for local operations.A significant amount of our operations are conducted by joint ventures that we cannot operate solely for our benefit. Many of our operations, primarily inChina, are carried out by joint ventures. In joint ventures we share ownership and management of a company with one or more parties who may not have thesame goals, strategies, priorities or resources as we do and may compete with us outside the joint venture. Joint ventures are intended to be operated for theequal benefit of all co-owners, rather than for our exclusive benefit. Operating a business as a joint venture often requires additional organizationalformalities as well as time-consuming procedures for sharing information and making decisions. In joint ventures we are required to foster our relationshipswith our co-owners as well as promote the overall success of the joint venture, and if a co-owner changes or relationships deteriorate, our success in the jointventure may be materially adversely affected. The benefits from a successful joint venture are shared among the co-owners, therefore we do not receive all thebenefits from our successful joint ventures. In addition, because we share ownership and management with one or more parties, we may have limited controlover the actions of a joint venture, particularly when we own a minority interest. As a result, we may be unable to prevent misconduct or other violations ofapplicable laws by a joint venture. Moreover, a joint venture may not follow the same requirements regarding compliance, internal controls and internalcontrol over financial reporting that we follow. To the extent another party makes decisions that negatively impact the joint venture or internal control issuesarise within the joint venture, we may have to take responsive or other action or we may be subject to penalties, fines or other related actions for theseactivities.We are subject to extensive laws, governmental regulations and policies, including those regarding fuel economy and emissions controls, that cansignificantly increase our costs and affect how we do business. We are significantly affected by governmental12Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESregulations that can increase costs related to the production of our vehicles and affect our product portfolio. Meeting or exceeding many of these regulationsis costly and often technologically challenging, especially where standards may not be harmonized across jurisdictions, a significant challenge with respectto mandated emissions and fuel economy standards. We anticipate that the number and extent of these regulations, and the related costs and changes to ourproduct portfolio, may increase significantly in the future. These government regulatory requirements could significantly affect our plans for global productdevelopment and given the uncertainty surrounding enforcement and regulatory definitions, may result in substantial costs, including civil or criminalpenalties. In addition, an evolving but un-harmonized regulatory framework may limit or dictate the types of vehicles we sell and where we sell them, whichcan affect revenue. Refer to the "Environmental and Regulatory Matters" section of Item 1. Business for further information on these regulatory requirements.We also expect that manufacturers will continue to be subject to increased scrutiny from regulators globally. For example, in Germany, the Ministry ofTransportation and the Kraftfahrt-Bundesamt have requested the participation of a number of automotive manufacturers, including our German subsidiary, incontinuing discussions on emissions control issues and have also requested, from time to time, written responses from our subsidiary on the subject. OurGerman subsidiary has participated in these discussions and has provided the requested responses to inquiries concerning nitrogen oxide emission controlsystems of its diesel engines. In addition, the German and the EU Parliaments have instigated Inquiry Commissions into government agencies' oversight ofemissions enforcement, requesting our German subsidiary's participation. At the same time, the German government has initiated further industry-wideinquiries about CO2 emissions. This scrutiny, regulatory changes or novel interpretations of current regulations, as well as increased enforcement has led toand may result in further increased testing and re-testing of our vehicles and analysis of their emissions control systems, which could lead to increased costs,penalties, negative publicity or reputational impact, and recall activity if regulators determine that emission levels and required regulatory complianceshould be based on either a wider spectrum of driving conditions for future testing parameters or stricter or novel interpretations and consequent enforcementof existing requirements. No assurance can be given that the ultimate outcome of any potential investigations or increased testing resulting from this scrutinywould not materially and adversely affect us.We expect that to comply with fuel economy and emission control requirements we will be required to sell a significant volume of hybrid electric vehicles,as well as develop and implement new technologies for conventional internal combustion engines, all at increased cost levels. There is no assurance that wewill be able to produce and sell vehicles that use such technologies on a profitable basis or that our customers will purchase such vehicles in the quantitiesnecessary for us to comply with these regulatory programs. Alternative compliance measures may not be sufficiently available in the marketplace to meetvolume driven compliance requirements.In the current uncertain regulatory framework, environmental liabilities for which we may be responsible and that are not reasonably estimable could besubstantial. Alleged violations of safety or emissions standards could result in legal proceedings, the recall of one or more of our products, negotiatedremedial actions, fines, restricted product offerings or a combination of any of those items. Any of these actions could have substantial adverse effects on ouroperations including facility idling, reduced employment, increased costs and loss of revenue.We could be materially adversely affected by a negative outcome in unusual or significant litigation, governmental investigations or other legalproceedings. We are subject to legal proceedings involving various issues, including product liability lawsuits, stockholder litigation and governmentalinvestigations, such as the legal proceedings related to the Ignition Switch Recall. Such legal proceedings could in the future result in the imposition ofdamages, including punitive damages, substantial fines, civil lawsuits and criminal penalties, interruptions of business, modification of business practices,equitable remedies and other sanctions against us or our personnel as well as significant legal and other costs. For a further discussion of these matters refer toNote 15 to our consolidated financial statements.If, in the discretion of the U.S. Attorney’s Office for the Southern District of New York (the Office), we do not comply with the terms of the DeferredProsecution Agreement (the DPA), the Office may prosecute us for charges alleged by the Office including those relating to faulty ignition switches. OnSeptember 17, 2015 we announced that we entered into the DPA with the Office regarding its investigation of the events leading up to certain recallsannounced in February and March of 2014 relating to faulty ignition switches. Under the DPA, we consented to, among other things, the filing of a two-countinformation (the Information) in the U.S. District Court for the Southern District of New York charging GM with a scheme to conceal material facts from agovernment regulator and wire fraud. We pled not guilty to the charges alleged in the Information. The DPA further provides that, in the event the Officedetermines during the period of deferral of prosecution (or any extensions thereof) that we have violated any provision of the DPA, including violating anyU.S. federal law or our obligation to cooperate with and assist the independent monitor, the Office may, in its discretion, either prosecute us on the chargesalleged in the Information or impose an extension of the period of deferral of prosecution of up to one additional year. Under such circumstance, the Officewould be permitted to rely13Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESupon the admissions we made in the DPA and would benefit from our waiver of certain procedural and evidentiary defenses. Such a criminal prosecutioncould subject us to penalties.The costs and effect on our reputation of product safety recalls could materially adversely affect our business. Government safety standards requiremanufacturers to remedy certain product safety defects through recall campaigns. Under these standards, we could be subject to civil or criminal penalties ormay incur various costs, including significant costs for free repairs. At present, the costs we incur in connection with these recalls typically include the cost ofthe part being replaced and labor to remove and replace the defective part. We currently source a variety of systems, components, raw materials and parts,including but not limited to air bag inflators, from third parties. From time to time these items may have performance or quality issues that could harm ourreputation and cause us to incur significant costs. For example, we are currently conducting recalls for certain Takata Corporation (Takata) air bag inflatorsused in some of our prior model year vehicles. We are continuing to assess the situation. Further recalls, if any, that may be required to remediate Takata airbag inflators in our vehicles could have a material impact on our business. In addition, product recalls can harm our reputation and cause us to losecustomers, particularly if those recalls cause consumers to question the safety or reliability of our products. Conversely not issuing a recall or not issuing arecall on a timely basis can harm our reputation, potentially expose us to significant monetary penalties, and cause us to lose customers for the same reasonsas expressed above.Any disruption in our suppliers' operations could disrupt our production schedule. Our automotive operations are dependent upon the continued abilityof our suppliers to deliver the systems, components, raw materials and parts that we need to manufacture our products. Our use of “just-in-time”manufacturing processes allows us to maintain minimal inventory quantities of systems, components, raw materials and parts. As a result our ability tomaintain production is dependent upon our suppliers delivering sufficient quantities of systems, components, raw materials and parts on time to meet ourproduction schedules. In some instances we purchase systems, components, raw materials and parts from a single source and may be at an increased risk forsupply disruptions. Financial difficulties or solvency problems with our suppliers, including Takata, which may be exacerbated by the cost of remediatingquality issues with these items, could lead to uncertainty in our supply chain or cause supply disruptions for us which could, in turn, disrupt our operations,including production of certain of our higher margin vehicles. Where we experience supply disruptions, we may not be able to develop alternate sourcingquickly. Any disruption of our production schedule caused by an unexpected shortage of systems, components, raw materials or parts even for a relativelyshort period of time could cause us to alter production schedules or suspend production entirely.We are dependent on our manufacturing facilities around the world. We assemble vehicles at various facilities around the world. These facilities aretypically designed to produce particular models for particular geographic markets. No single facility is designed to manufacture our full range of vehicles. Insome cases certain facilities produce products that disproportionately contribute a greater degree to our profitability than others. Should these or otherfacilities become unavailable either temporarily or permanently for any number of reasons, including labor disruptions, the inability to manufacture vehiclesthere may result in harm to our reputation, increased costs, lower revenues and the loss of customers. We may not be able to easily shift production of vehiclesat an inoperable facility to other facilities or to make up for lost production. Any new facility needed to replace an inoperable manufacturing facility wouldneed to comply with the necessary regulatory requirements, need to satisfy our specialized manufacturing requirements and require specializedequipment. Even though we carry business interruption insurance policies, we may suffer losses as a result of business interruptions that exceed the coverageavailable or any losses which may be excluded under our insurance policies.We operate in a highly competitive industry that has excess manufacturing capacity and attempts by our competitors to sell more vehicles could have asignificant negative effect on our vehicle pricing, market share and operating results. The global automotive industry is highly competitive and overallmanufacturing capacity in the industry exceeds demand. Many manufacturers have relatively high fixed labor costs as well as significant limitations on theirability to close facilities and reduce fixed costs. Our competitors may respond to these relatively high fixed costs by providing subsidized financing orleasing programs, offering marketing incentives or reducing vehicle prices. Our competitors may also seek to benefit from economies of scale byconsolidating or entering into other strategic agreements such as alliances intended to enhance their competitiveness.Domestic manufacturers in lower cost countries, such as China and India, have become competitors in key emerging markets and announced their intentionto export their products to established markets as a low cost alternative to established entry-level automobiles. In addition, foreign governments may decideto implement tax and other policies that favor their domestic manufacturers at the expense of international manufacturers, including GM and its joint venturepartners. These actions have had, and are expected to continue to have, a significant negative effect on our vehicle pricing, market share and operatingresults, and present a significant risk to our ability to enhance our revenue per vehicle.14Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESWe may continue to restructure or divest our operations in various countries, but we may not succeed in doing so. We face difficult market and operatingconditions in certain parts of the world that may require us to restructure or rationalize these operations, which may result in impairments. In many countriesacross our regions we have experienced challenges in our operations and continue to strategically assess the manner in which we operate in certain countries.As we continue to assess our performance throughout our regions, additional restructuring and rationalization actions may be required and may be material.Our future competitiveness and ability to achieve long-term profitability depends on our ability to control our costs, which requires us to successfullyimplement operating effectiveness initiatives throughout our automotive operations. We are continuing to implement a number of operating effectivenessinitiatives to improve productivity and reduce costs. Our future competitiveness depends upon our continued success in implementing these initiativesthroughout our automotive operations. While some of the elements of cost reduction are within our control, others, such as interest rates or return oninvestments, which influence our expense for pensions, depend more on external factors, and there can be no assurance that such external factors will notmaterially adversely affect our ability to reduce our costs. Reducing costs may prove difficult due to our focus on increasing advertising and our belief thatengineering and other expenses necessary to improve the performance, safety and customer satisfaction of our vehicles and to continue to innovate ourtechnology and product offerings to meet changing customer needs and market developments are likely to increase.Security breaches and other disruptions to our vehicles, information technology networks and systems could interfere with the safety of our customers orour operations and could compromise the confidentiality of private customer data or our proprietary information. We rely upon information technologynetworks and systems, including in-vehicle systems and mobile devices, some of which are managed by third-parties, to process, transmit and store electronicinformation, and to manage or support a variety of vehicle or business processes and activities. Additionally we collect and store sensitive data, includingintellectual property, proprietary business information, proprietary business information of our dealers and suppliers, as well as personally identifiableinformation of our customers and employees, in data centers and on information technology networks. The secure operation of these information technologynetworks and in-vehicle systems, and the processing and maintenance of this information, is critical to our business operations and strategy. Despite securitymeasures and business continuity plans, our information technology networks and systems and in-vehicle systems may be vulnerable to damage, disruptionsor shutdowns due to attacks by hackers or breaches due to errors or malfeasance by employees, contractors and others who have access to our networks andsystems or computer viruses. The occurrence of any of these events could compromise our networks and the information stored there could be accessed,publicly disclosed, lost or stolen. These occurrences could also impact vehicle safety. We have been the target of these types of attacks in the past and futureattacks are likely to occur. If successful, these types of attacks on our network or systems, including in-vehicle systems and mobile devices, or service failurescould result in, among other things, the loss of proprietary data, interruptions or delays in our business operations and damage to our reputation. In addition,any such access, disruption, technological failures, disclosure or other loss of information could result in legal claims or proceedings, liability or regulatorypenalties under laws protecting the privacy of personal information, disrupt operations and reduce the competitive advantage we hope to derive from ourinvestment in advanced technologies.We rely on GM Financial to provide financial services to our dealers and customers in a majority of the markets in which we sell vehicles. GM Financialfaces a number of business, economic and financial risks that could impair its access to capital and negatively affect its business and operations and itsability to provide leasing and financing to retail consumers and commercial lending to our dealers to support additional sales of our vehicles. We rely onGM Financial in North America, Europe, South America and China to support leasing and sales of our vehicles to consumers requiring vehicle financing andalso to provide commercial lending to our dealers. Any reduction in GM Financial's ability to provide such financial services would negatively affect ourefforts to support additional sales of our vehicles and expand our market penetration among consumers and dealers.As an entity operating in the financial services sector, GM Financial is required to comply with a wide variety of laws and regulations that may be costly toadhere to and may affect our consolidated operating results. Compliance with these laws and regulations requires that GM Financial maintain forms,processes, procedures, controls and the infrastructure to support these requirements and these laws and regulations often create operational constraints bothon GM Financial’s ability to implement servicing procedures and on pricing. Laws in the financial services industry are designed primarily for the protectionof consumers. The failure to comply with these laws could result in significant statutory civil and criminal penalties, monetary damages, attorneys’ fees andcosts, possible revocation of licenses and damage to reputation, brand and valued customer relationships.The primary factors that could adversely affect GM Financial's business and operations and reduce its ability to provide financing services at competitiverates include the availability of borrowings under its credit facilities to fund its retail and commercial finance activities; its ability to access a variety offinancing sources including the asset-backed securities market and other secured15Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESand unsecured debt markets; the performance of loans and leases in its portfolio, which could be materially affected by delinquencies, defaults orprepayments; wholesale auction values of used vehicles; higher than expected vehicle return rates and the residual value performance on vehicles GMFinancial leases to customers; fluctuations in interest rates and currencies; and changes to regulation, supervision and licensing across various jurisdictions,including new regulations or sanctions imposed in the U.S. by the Department of Justice, SEC and Consumer Financial Protection Bureau.Our defined benefit pension plans are currently underfunded and our pension funding requirements could increase significantly due to a reduction infunded status as a result of a variety of factors, including weak performance of financial markets, declining interest rates, changes in laws or regulations,changes in assumptions or investments that do not achieve adequate returns. Our employee benefit plans currently hold a significant amount of equity andfixed income securities. A detailed description of the investment funds and strategies is disclosed in Note 14 to our consolidated financial statements, whichalso describes significant concentrations of risk to the plan investments.There are additional risks due to the complexity and magnitude of our investments. Examples include implementation of significant changes in investmentpolicy, insufficient market liquidity in particular asset classes and the inability to quickly rebalance illiquid and long-term investments.Our future funding requirements for our U.S. defined benefit pension plans depend upon the future performance of assets placed in trusts for these plans, thelevel of interest rates used to determine funding levels, the level of benefits provided for by the plans and any changes in government laws and regulations.Future funding requirements generally increase if the discount rate decreases or if actual asset returns are lower than expected asset returns, assuming otherfactors are held constant. Our potential funding requirements are described in Note 14 to our consolidated financial statements.Factors which affect future funding requirements for our U.S. defined benefit plans generally affect the required funding for non-U.S. plans. Certain plansoutside the U.S. do not have assets and therefore the obligation is funded as benefits are paid. If local legal authorities increase the minimum fundingrequirements for our non-U.S. plans, we could be required to contribute more funds.* * * * * * *Item 1B. Unresolved Staff CommentsNone* * * * * * *Item 2. PropertiesAt December 31, 2016 we had over 100 locations in the U.S., excluding our automotive financing operations and dealerships, which are primarily formanufacturing, assembly, distribution, warehousing, engineering and testing. Leased properties are primarily composed of warehouses and administration,engineering and sales offices.We have manufacturing, assembly, distribution, office or warehousing operations in 61 countries, including equity interests in associated companies whichperform manufacturing, assembly, or distribution operations. The major facilities outside the U.S., which are principally vehicle manufacturing and assemblyoperations, are located in Argentina, Australia, Brazil, Canada, China, Colombia, Ecuador, Egypt, Germany, Kenya, Mexico, Poland, South Africa, SouthKorea, Spain, Thailand and the U.K.GM Financial leases facilities for administration and regional credit centers. GM Financial has 50 facilities, of which 25 are located in the U.S. The majorfacilities outside the U.S. are located in Brazil, Canada, China, Germany, Mexico and the U.K.We, our subsidiaries, or associated companies in which we own an equity interest, own most of the above facilities.* * * * * * *Item 3. Legal Proceedings16Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESRefer to the discussion in the Litigation-Related Liability and Tax Administrative Matters section in Note 15 to our consolidated financial statements forinformation relating to legal proceedings. * * * * * * *Item 4. Mine Safety DisclosuresNot applicable* * * * * * *PART IIItem 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity SecuritiesMarket Information Shares of our common stock have been publicly traded since November 18, 2010 when our common stock was listed and began tradingon the New York Stock Exchange and the Toronto Stock Exchange. The following table summarizes the quarterly price ranges of our common stock based onhigh and low prices from intraday trades on the New York Stock Exchange, the principal market on which the stock is traded: Years Ended December 31, 2016 2015 High Low High LowFirst quarter$33.54 $26.69 $38.99 $32.36Second quarter$33.41 $27.34 $37.45 $33.06Third quarter$32.87 $27.52 $33.61 $24.62Fourth quarter$37.74 $30.21 $36.88 $29.98Holders At January 31, 2017 we had 1.5 billion issued and outstanding shares of common stock held by 591 holders of record.Dividends Our Board of Directors began declaring quarterly dividends on our common stock in the three months ended March 31, 2014. It is anticipated thatdividends on our common stock will continue to be declared and paid quarterly. However the declaration of any dividend on our common stock is a matter tobe acted upon by our Board of Directors in its sole discretion. Any dividend will be paid out of funds legally available for that purpose. Our payment ofdividends in the future will depend on business conditions, our financial condition, earnings, liquidity and capital requirements and other factors. Refer toItem 6. Selected Financial Data for cash dividends declared on our common stock for the years ended December 31, 2016, 2015 and 2014.Purchases of Equity Securities The following table summarizes our purchases of common stock in the three months ended December 31, 2016: Total Number ofSharesPurchased(a) AveragePrice Paidper Share Total Number ofShares PurchasedUnder AnnouncedPrograms(b) Approximate Dollar Value ofShares That May Yet bePurchased Under AnnouncedProgramsOctober 1, 2016 through October 31, 201641,719 $32.06 — $4.0 billionNovember 1, 2016 through November 30, 201618,532,366 $32.92 17,906,695 $3.4 billionDecember 1, 2016 through December 31, 201611,537,206 $36.25 11,311,477 $3.0 billionTotal30,111,291 $34.19 29,218,172 __________(a)Shares purchased consist of: (1) shares purchased under our previously announced common stock repurchase program; (2) shares retained by us for the payment of theexercise price upon the exercise of warrants; and (3) shares delivered by employees or directors to us for the payment of taxes resulting from issuance of common stock uponthe vesting of Restricted Stock Units (RSUs) and Restricted Stock Awards (RSAs) relating to compensation plans. Refer to Note 21 to our consolidated financial statementsfor additional details on employee stock incentive plans and Note 19 to our consolidated financial statements for additional details on warrants issued.(b)In January 2016 our Board of Directors authorized the purchase of up to an additional $4 billion of our common stock under our previously announced common stockrepurchase program before the end of 2017. In January 2017 we announced that our Board of Directors had authorized the purchase of up to an additional $5 billion of ourcommon stock with no expiration date.17Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES* * * * * * *Item 6. Selected Financial Data At and for the Years Ended December 31,2016 2015 2014 2013 2012Income Statement Data: Total net sales and revenue$166,380 $152,356 $155,929 $155,427 $152,256Net income(a)$9,268 $9,615 $4,018 $5,331 $6,136Net income attributable to stockholders$9,427 $9,687 $3,949 $5,346 $6,188Net income attributable to common stockholders(b)$9,427 $9,687 $2,804 $3,770 $4,859Basic earnings per common share(a)(b)$6.12 $6.11 $1.75 $2.71 $3.10Diluted earnings per common share(a)(b)$6.00 $5.91 $1.65 $2.38 $2.92Dividends declared per common share$1.52 $1.38 $1.20 $— $—Balance Sheet Data: Total assets(c)$221,690 $194,338 $177,311 $166,231 $149,422Automotive notes and loans payable$10,752 $8,765 $9,350 $7,098 $5,172GM Financial notes and loans payable(c)$73,876 $54,346 $37,315 $28,972 $10,878Total equity$44,075 $40,323 $36,024 $43,174 $37,000_________(a)In the year ended December 31, 2015 we recorded the reversal of deferred tax asset valuation allowances of $3.9 billion in GME and recorded charges related to the IgnitionSwitch Recall for various legal matters of approximately $1.6 billion. In the year ended December 31, 2014 we recorded charges of approximately $2.9 billion in Automotivecost of sales related to recall campaigns and courtesy transportation, a catch-up adjustment of $0.9 billion related to the change in estimate for recall campaigns and a charge of$0.4 billion related to the Ignition Switch Recall compensation program. In the year ended December 31, 2012 we recorded Goodwill impairment charges of $27.1 billion, thereversal of deferred tax asset valuation allowances of $36.3 billion in the U.S. and Canada, pension settlement charges of $2.7 billion and GME long-lived asset impairmentcharges of $5.5 billion.(b)In December 2014 we redeemed all of the remaining shares of our Series A Preferred Stock for $3.9 billion, which reduced Net income attributable to common stockholdersby $0.8 billion. In September 2013 we purchased 120 million shares of our Series A Preferred Stock held by the UAW Retiree Medical Benefits Trust (New VEBA) for $3.2billion, which reduced Net income attributable to common stockholders by $0.8 billion.(c)In the year ended December 31, 2013 GM Financial acquired Ally Financial Inc.'s international operations in Europe and Latin America.* * * * * * *Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThis Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with theaccompanying audited consolidated financial statements and notes. Forward-looking statements in this MD&A are not guarantees of future performance andmay involve risks and uncertainties that could cause actual results to differ materially from those projected. Refer to the "Forward-Looking Statements"section of this MD&A and Item 1A. "Risk Factors" for a discussion of these risks and uncertainties.18Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNon-GAAP Measures Our non-GAAP measures include earnings before interest and taxes (EBIT)-adjusted presented net of noncontrolling interests, EPS-diluted-adjusted, return on invested capital-adjusted (ROIC-adjusted) and adjusted automotive free cash flow. Our calculation of these non-GAAP measuresmay not be comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As aresult, the use of these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or as a substitute for, related U.S.GAAP measures.These non-GAAP measures allow management and investors to view operating trends, perform analytical comparisons and benchmark performancebetween periods and among geographic regions to understand operating performance without regard to items we do not consider a component of our coreoperating performance. Furthermore, these non-GAAP measures allow investors the opportunity to measure and monitor our performance against ourexternally communicated targets and evaluate the investment decisions being made by management to improve ROIC-adjusted. Management uses thesemeasures in its financial, investment and operational decision-making processes, for internal reporting and as part of its forecasting and budgeting processes.Further, our Board of Directors uses these and other measures as key metrics to determine management performance under our performance-basedcompensation plans. For these reasons we believe these non-GAAP measures are useful for our investors.EBIT-adjusted is used by management and can be used by investors to review our consolidated operating results because it excludes automotive interestincome, automotive interest expense and income taxes as well as certain additional adjustments that are not considered part of our core operations. Examplesof adjustments to EBIT include but are not limited to impairment charges related to goodwill; impairment charges on long-lived assets and other exit costsresulting from strategic shifts in our operations or discrete market and business conditions; costs arising from the ignition switch recall and related legalmatters; and certain currency devaluations associated with hyperinflationary economies. For EBIT-adjusted and our other non-GAAP measures, once we havemade an adjustment in the current period for an item, we will also adjust the related non-GAAP measure in any future periods in which there is an impact fromthe item.EPS-diluted-adjusted is used by management and can be used by investors to review our consolidated diluted earnings per share results on a consistentbasis. EPS-diluted-adjusted is calculated as net income attributable to common stockholders-diluted less certain adjustments noted above for EBIT-adjustedand gains or losses on the extinguishment of debt obligations on an after-tax basis as well as redemptions of preferred stock and certain income taxadjustments divided by weighted-average common shares outstanding-diluted. Examples of income tax adjustments include the establishment or reversal ofsignificant deferred tax asset valuation allowances.ROIC-adjusted is used by management and can be used by investors to review our investment and capital allocation decisions. We define ROIC-adjustedas EBIT-adjusted for the trailing four quarters divided by average net assets, which is considered to be the average equity balances adjusted for averageautomotive debt and interest liabilities, exclusive of capital leases; average automotive net pension and other postretirement benefits (OPEB) liabilities; andaverage automotive net income tax assets during the same period.Adjusted automotive free cash flow is used by management and can be used by investors to review the liquidity of our automotive operations and tomeasure and monitor our performance against our capital allocation program and evaluate our automotive liquidity against the substantial cash requirementsof our automotive operations. We measure adjusted automotive free cash flow as automotive cash flow from operations less capital expenditures adjusted formanagement actions, primarily related to strengthening our balance sheet, such as prepayments of debt and discretionary contributions to employee benefitplans. Refer to the “Liquidity and Capital Resources” section of this MD&A for our reconciliation of Net Automotive cash provided by (used in) operatingactivities under U.S. GAAP to this non-GAAP measure.The following table reconciles Net income attributable to stockholders under U.S. GAAP to EBIT-adjusted used in the calculation of ROIC-adjusted:19Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES Years Ended December 31, 2016 2015 2014Net income attributable to stockholders$9,427 $9,687 $3,949Income tax expense (benefit)2,416 (1,897) 228Gain on extinguishment of debt— (449) (202)Automotive interest expense572 443 403Automotive interest income(185) (169) (211)Adjustments Ignition switch recall and related legal matters(a)300 1,785 400Recall campaign catch-up adjustment(b)— — 874Thailand asset impairments(c)— 297 158Venezuela currency devaluation and asset impairment(d)— 720 419Russia exit costs and asset impairment(e)— 438 245Goodwill impairment— — 120Other— (41) 111Total adjustments300 3,199 2,327EBIT-adjusted$12,530 $10,814 $6,494________(a)These adjustments were excluded because of the unique events associated with the ignition switch recall. These events included the creation of the ignition switch recallcompensation program, as well as various investigations, inquiries, and complaints from various constituents.(b)This adjustment was excluded because it resulted from our decision to change the method we use to estimate costs associated with recall campaigns in GMNA.(c)These adjustments were excluded because of the significant restructuring of our Thailand operations and the strategic actions taken to focus on the production of pick-up trucksand SUVs.(d)This adjustment was excluded because of the devaluation of the Venezuela Bolivar Fuerte (BsF), our inability to transact at the Complementary System of Foreign CurrencyAdministration (SICAD) rate to obtain U.S. Dollars and the market restrictions imposed by the Venezuelan government.(e)These adjustments were excluded because they were driven by deteriorating market conditions in Russia, which led to asset impairments in 2014 and our decision to exit theRussia market in 2015. The Russia exit costs primarily consisted of sales incentives, dealer restructuring and other contract cancellation costs, and asset impairments.The following table reconciles diluted earnings per common share under U.S. GAAP to EPS-diluted-adjusted: Years Ended December 31, 2016 2015 2014 Amount Per Share Amount Per Share Amount Per ShareDiluted earnings per common share$9,427 $6.00 $9,686 $5.91 $2,786 $1.65Adjustments Gain on extinguishment of debt— — (449) (0.27) (202) (0.12)Redemption and purchase of Series A preferred stock— — — — 794 0.47All other adjustments(a)300 0.19 3,199 1.95 2,327 1.38Total adjustments300 0.19 2,750 1.68 2,919 1.73Tax effect on adjustments(b)(114) (0.07) (201) (0.13) (561) (0.33)Tax adjustments(c)— — (4,001) (2.44) — —EPS-diluted-adjusted$9,613 $6.12 $8,234 $5.02 $5,144 $3.05________(a)Refer to the reconciliation of Net income attributable to stockholders under U.S. GAAP to EBIT-adjusted within this section of MD&A for the details of each individualadjustment.(b)The tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction in which the adjustment relates.20Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES(c)These adjustments primarily consist of the tax benefit related to the valuation allowance reversal in Europe. The adjustment was excluded because valuation allowance reversalsare not considered part of our core operations.We define return on equity (ROE) as Net income attributable to stockholders for the trailing four quarters divided by average equity for the same period.Management uses average equity to provide comparable amounts in the calculation of ROE. The following table summarizes the calculation of ROE (dollarsin billions): Years Ended December 31, 2016 2015 2014Net income attributable to stockholders$9.4 $9.7 $3.9Average equity$43.6 $37.0 $41.3ROE21.6% 26.2% 9.6%The following table summarizes the calculation of ROIC-adjusted (dollars in billions): Years Ended December 31, 2016 2015 2014EBIT-adjusted(a)$12.5 $10.8 $6.5Average equity$43.6 $37.0 $41.3Add: Average automotive debt and interest liabilities (excluding capital leases)10.0 8.1 6.8Add: Average automotive net pension & OPEB liability24.5 28.3 26.5Less: Average automotive net income tax asset(34.8) (33.6) (32.4)ROIC-adjusted average net assets$43.3 $39.8 $42.2ROIC-adjusted28.9% 27.2% 15.4%________(a)Refer to the reconciliation of Net income attributable to stockholders under U.S. GAAP to EBIT-adjusted within this section of MD&A.Overview Our strategic plan includes several major initiatives that we anticipate will help us achieve our goal of 9% to 10% margins on an EBIT-adjustedbasis (EBIT-adjusted margins, calculated as EBIT-adjusted divided by Net sales and revenue) by early next decade: earn customers for life by delivering greatproducts to our customers, leading the industry in quality and safety and improving the customer ownership experience; lead in technology and innovation,including OnStar 4G LTE and connected car, alternative propulsion, urban mobility including ride- and car-sharing through Maven and our investment inLyft, active safety features and autonomous vehicles; grow our brands, particularly the Cadillac brand in the U.S. and China and the Chevrolet brandglobally; continue our growth in China; continue the growth of GM Financial into our full captive automotive financing company; and deliver coreoperating efficiencies.In addition to our EBIT-adjusted margin improvement goal, our overall financial targets include expected total annual operational and functional costsavings of $6.5 billion through 2018 compared to 2014 costs, of which approximately $4 billion has been realized as of December 31, 2016, and which weexpect will more than offset our incremental investments in brand building, engineering and technology as we launch new products in 2017 and beyond; andexecution of our capital allocation program as described in the "Liquidity and Capital Resources" section of this MD&A.For the year ending December 31, 2017 we expect to continue to generate strong consolidated financial results including improved total net sales andrevenue, EBIT-adjusted and EBIT-adjusted margins that equal or exceed the corresponding amounts in 2016, ROIC-adjusted of greater than 25%,Automotive operating cash flow of approximately $15 billion, adjusted automotive free cash flow of approximately $6 billion and EPS-diluted and EPS-diluted-adjusted of between $6.00 and $6.50. We do not consider the potential future impact of adjustments on our expected financial results. We expectthese financial results in part to be driven by favorable shifts in mix for our new or refreshed product launches, including crossovers.The following table reconciles expected automotive net cash provided by operating activities under U.S. GAAP to expected adjusted automotive free cashflow (dollars in billions):21Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES Year Ending December 31,2017Automotive net cash provided by operating activities$15Less: expected capital expenditures(9)Adjusted automotive free cash flow$6We face continuing challenges from a market, operating and regulatory standpoint in a number of countries across the globe due to, among other factors,weak economic conditions, competitive pressures, our product portfolio offerings, emissions standards, foreign exchange volatility and political uncertainty.As a result of these conditions, we continue to strategically assess our performance and ability to achieve acceptable returns on our invested capital. As wecontinue to assess our performance, additional restructuring and rationalization actions may be required or a determination may be made that the carryingamount of our long-lived assets may not be recoverable in certain of these countries. Such a determination may give rise to future asset impairments or othercharges which may have a material impact on our results of operations.GMNA In the year ended December 31, 2016 industry sales to retail and fleet customers were 21.9 million units representing a 1.7% increase compared tothe corresponding period in 2015 due to strong consumer demand driven by credit availability, low interest rates and low fuel prices.In the year ended December 31, 2016 our vehicle sales in the U.S., our largest market in North America, totaled 3.0 million units for market share of 17.0%,representing a decrease of 0.3 percentage points compared to the corresponding period in 2015. The decrease in our U.S. market share was driven primarily bylower fleet market share due to a planned reduction in rental deliveries, partially offset by higher retail market share. U.S. retail sales, generally moreprofitable than fleet sales, generated an increase of 0.5 percentage points in market share, primarily driven by Chevrolet.We achieved EBIT-adjusted margins of 10.1% during 2016 on continued strength of U.S. industry light vehicle sales, new product launches and materialand other cost savings, which partially offset launch related costs. Based on our current cost structure, we continue to estimate GMNA’s breakeven point atthe U.S. industry level to be in the range of 10.0 - 11.0 million units. We expect to sustain an EBIT-adjusted margin of 10% in 2017 on continued strength ofU.S. industry light vehicle sales, key product launches and continued focus on overall cost savings.GME As a result of moderate economic growth across Europe (excluding Russia) automotive industry sales to retail and fleet customers continuedimproving in the year ended December 31, 2016 with industry sales to retail and fleet customers of 18.8 million units representing a 6.1% increase comparedto the corresponding period in 2015.Our European operations are benefiting from this trend and vehicle sales continue to show signs of improvement underscored by further improvement inour Opel and Vauxhall retail vehicle sales of 1.2 million units for market share of 5.7% in the year ended December 31, 2016 consistent with thecorresponding period in 2015. We continue to implement various strategic actions to strengthen our operations and increase our competitiveness.Despite the improvements we experienced through most of 2016 we were unable to overcome the impacts of the U.K. referendum vote to leave theEuropean Union (Brexit) resulting in a $0.3 billion unfavorable impact due primarily to adverse movement in the British Pound against the U.S. Dollar.We anticipate the impacts of Brexit to continue through 2017. We also anticipate headwinds associated with industry pricing pressures and increased costsassociated with depreciation, amortization, marketing and costs associated with our new product launches. We intend to mitigate these headwinds with thefull benefit of our recently launched Astra and Mokka X along with the 2017 launches of the Insignia, Ampera E, and two new crossovers that we believe willsubstantially increase our competitiveness in this growing market.The German Ministry of Transportation and the Kraftfahrt-Bundesamt have requested the participation of a number of automotive manufacturers, includingour German subsidiary, in continuing discussions on emissions control issues and have also requested, from time to time, written responses from oursubsidiary on the subject. Our German subsidiary has participated in these discussions and has provided the requested responses to inquiries concerningnitrogen oxide emission control systems of its diesel engines. In addition, the German and the EU Parliaments have instigated Inquiry Commissions intogovernment agencies' oversight of emissions enforcement, requesting our German subsidiary's participation. At the same time, the German government hasinstigated further industry-wide inquiries about CO2 emissions. This scrutiny, regulatory changes and increased enforcement has led to22Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESincreased testing and re-testing of our vehicles and analysis of their emissions control systems, which could lead to increased costs, penalties, negativepublicity or reputational impact, and recall activity if regulators determine that emission levels and required regulatory compliance should be based on eithera wider spectrum of driving conditions for future testing parameters or stricter or novel interpretations and consequent enforcement of existing requirements.No assurance can be given that the ultimate outcome of any potential investigations or increased testing resulting from this scrutiny would not materially andadversely affect us.GMIO In the year ended December 31, 2016 China industry sales were 28.3 million units, representing an increase of 12.9% compared to the correspondingperiod in 2015. In the year ended December 31, 2016 our China wholesale volumes increased by 4.9% compared to the corresponding period in 2015. Ourmarket share decreased to 13.8%, down 1.1 percentage points as our volume growth was less than that of the industry. Strong growth in Cadillac, Buick andBaojun passenger vehicles, including SUVs, were partially offset by lower Chevrolet sales because of model changeover and lower Wuling sales because of acontinued segment shift away from mini commercial vehicles. In the year ended December 31, 2016 our Automotive China JVs generated equity income of$2.0 billion. We expect moderate industry growth in 2017 and continuation of pricing pressures which will continue to pressure margins. We continue toexpect an increase in vehicle sales driven by new launches and expect to sustain strong China equity income by focusing on vehicle mix improvements, costimprovements and efficiencies, and downstream performance optimization.A weaker economy due partially to lower oil prices and foreign exchange volatility, among other factors, negatively impacted the overall automotiveindustry in the rest of Asia Pacific, Africa and the Middle East and led to industry sales to retail and fleet customers of 18.9 million units, representing adecrease of 3.2% in the year ended December 31, 2016 compared to the corresponding period in 2015. In the year ended December 31, 2016 our retail salestotaled 0.7 million units leading to a market share of 3.6%, representing a decrease of 0.5 percentage points compared to the corresponding period in 2015.The decrease in retail sales volumes was due primarily to overall industry volume declines, foreign currency availability and economic challenges in theMiddle East, Egypt and South Africa.In 2017 we expect the operating environment to remain challenging. As we strategically assess our performance and the manner in which we operate incertain countries, additional restructuring and rationalization actions may be required and may have a material impact on our results of operations.GMSA The South American automotive industry continues to be challenged by weak economic conditions and lack of consumer confidence. Industry salesto retail and fleet customers were 3.7 million units in the year ended December 31, 2016 representing a 12.3% decrease compared to the corresponding periodin 2015. In the year ended December 31, 2016, our vehicle sales in Brazil, our largest market in South America, totaled 0.3 million units for market share of16.9%, representing an increase of 1.8 percentage points compared to the corresponding period in 2015 primarily driven by a refreshed portfolio.In 2017 we expect conditions in South America to improve as the economy recovers driven by higher consumer confidence and lower interest rates. Wewill continue to monitor conditions in South America and take actions to address challenges in the region.Corporate In connection with our capital allocation program, as detailed in the "Liquidity and Capital Resources" section of this MD&A, we previouslyannounced that our Board of Directors had authorized programs to purchase up to $5 billion and $4 billion of our common stock before the end of 2016 and2017. We completed the $5 billion program in the three months ended September 30, 2016 and $1 billion of the $4 billion program in the three monthsended December 31, 2016. In January 2017 we announced that our Board of Directors had authorized the purchase of up to an additional $5 billion of ourcommon stock with no expiration date, subsequent to completing the remaining portion of the previously announced programs. Through February 1, 2017we had purchased 180 million shares of our outstanding common stock under our common stock repurchase program for $6.0 billion.The Ignition Switch Recall has led to various inquiries, investigations, subpoenas, requests for information and complaints from agencies or otherrepresentatives of U.S., federal, state and Canadian governments. In addition these and other recalls have resulted in a number of claims and lawsuits. Suchlawsuits and investigations could in the future result in the imposition of material damages, fines, civil consent orders, civil and criminal penalties or otherremedies. Refer to Note 15 to our consolidated financial statements for additional information.Takata Matters On May 4, 2016 NHTSA issued an amended consent order requiring Takata to file defect information reports (DIRs) for previouslyunrecalled front airbag inflators that contain an ammonium nitrate-based propellant without a moisture absorbing desiccant on a multi-year, risk-basedschedule through 2019 impacting tens of millions of vehicles produced by numerous automotive manufacturers. NHTSA concluded that the likely root causeof the rupturing of the airbag inflators is a function of23Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIEStime, temperature cycling and environmental moisture. On May 16, 2016 Takata issued its first DIR in connection with the amended consent order, and onJanuary 3, 2017, Takata issued its second set of DIRs.Although we do not believe there is a safety defect at this time in any GM vehicles within the scope of the Takata DIR, in cooperation with NHTSA wefiled Preliminary DIRs on May 27, 2016, updated as of June 13, 2016, covering 2.5 million of certain of our GMT900 vehicles, which are full-size pick-uptrucks and SUVs. On November 15, 2016, we filed a petition for inconsequentiality and request for deferral of determination regarding certain GMT900vehicles equipped with Takata inflators. On November 28, 2016, NHTSA granted GM’s deferral request in connection with this petition. The deferralprovides GM until August 31, 2017 to present evidence and analysis that our vehicles do not pose an unreasonable risk to motor vehicle safety. We believethat this timeline will permit us to complete our testing of the relevant non-desiccated Takata inflators in GMT900 vehicles and to prove to NHTSA that theinflators in these vehicles do not present an unreasonable risk to safety and that no repair will ultimately be required.Takata filed a second set of equipment DIRs on January 3, 2017 and we filed a second set of Preliminary DIRs for certain GMT900 vehicles on January 10,2017. These January 2017 DIRs are consistent with GM’s May 2016 DIRs. On the same day, we also filed a second petition for inconsequentiality anddeferral of decision with respect to the vehicles subject to our January 2017 DIRs. On January 18, 2017, NHTSA consolidated our first and second petitionsfor inconsequentiality and will rule on both at the same time.We believe these vehicles are currently performing as designed and ongoing testing continues to support the belief that the vehicles' unique design andintegration mitigates against inflator degradation. For example, the airbag inflators used in the vehicles are a variant engineered specifically for our vehicles,and include features such as greater venting, unique propellant wafer configurations, and machined steel end caps. The inflators are packaged in theinstrument panel in such a way as to minimize exposure to moisture from the climate control system. Also, these vehicles have features that minimize themaximum temperature to which the inflator will be exposed, such as larger interior volumes and standard solar absorbing windshields and side glass. Webelieve that the results of further testing and analysis will demonstrate that the vehicles do not present an unreasonable risk to safety and that no repair willultimately be required. Accordingly, no warranty provision has been made for any repair associated with our vehicles subject to the Preliminary DIRs andamended consent order. However, in the event we are ultimately obligated to repair the inflators in these vehicles, we estimate a reasonably possible cost ofup to $880 million for the 6.9 million vehicles subject to either the Preliminary DIRs or future Takata DIRs under the amended consent order.Through January 27, 2017 we were aware of one putative class action pending against GM in federal court in the U.S., one putative class action in Mexicoand seven putative class actions pending in various Provincial Courts in Canada arising out of allegations that airbag inflators manufactured by Takata aredefective. In addition, the New Mexico Attorney General has initiated litigation against Takata and numerous automotive manufacturers, including GM. Atthis early stage of these proceedings, we are unable to provide an evaluation of the likelihood that a loss will be incurred or an estimate of the amounts orrange of possible loss.Automotive Financing - GM Financial Summary and Outlook GM Financial has expanded its leasing, near prime and prime lending programs in NorthAmerica; therefore, leasing and prime lending have become a larger percentage of the originations and retail portfolio balance. GM Financial's retailpenetration in North America grew to approximately 33% in the year ended December 31, 2016 from approximately 30% in the corresponding period in2015 as a result of the expanded leasing and lending programs. In the year ended December 31, 2016 GM Financial's revenue consisted of leased vehicleincome of 62%, retail finance charge income of 30%, commercial finance charge income of 5% and other income of 3%. We believe that offering acomprehensive suite of financing products will generate incremental sales of our vehicles, drive incremental GM Financial earnings and help support oursales throughout various economic cycles.Consolidated Results We review changes in our results of operations under five categories: volume, mix, price, cost and other. Volume measures the impactof changes in wholesale vehicle volumes driven by industry volume, market share and changes in dealer stock levels. Mix measures the impact of changes tothe regional portfolio due to product, model, trim, country and option penetration in current year wholesale vehicle volumes. Price measures the impact ofchanges related to Manufacturer’s Suggested Retail Price and various sales allowances. Cost includes primarily: (1) material and freight; (2) manufacturing,engineering, advertising, administrative and selling and warranty expense; and (3) non-vehicle related activity. Other includes primarily foreign exchangeand non-vehicle related automotive revenues as well as equity income or loss from our nonconsolidated affiliates. Refer to the regional sections of thisMD&A for additional information.Total Net Sales and Revenue24Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES Years Ended December 31, Favorable/(Unfavorable) Variance Due To2016 2015 % Volume Mix Price Other (Dollars in billions)GMNA$119,022 $106,622 $12,400 11.6 % $11.0 $0.5 $1.7 $(0.8)GME18,707 18,704 3 — % $0.5 $(0.3) $0.4 $(0.7)GMIO11,749 12,626 (877) (6.9)% $(0.5) $(0.1) $0.1 $(0.4)GMSA7,223 7,820 (597) (7.6)% $(0.5) $0.2 $0.9 $(1.2)Corporate148 150 (2) (1.3)% $—Automotive156,849 145,922 10,927 7.5 % $10.6 $0.2 $3.2 $(3.0)GM Financial9,531 6,434 3,097 48.1 % $3.1Total net sales and revenue$166,380 $152,356 $14,024 9.2 % $10.6 $0.2 $3.2 $0.1 Years Ended December 31, Favorable/(Unfavorable) Variance Due To2015 2014 % Volume Mix Price Other (Dollars in billions)GMNA$106,622 $101,199 $5,423 5.4 % $6.8 $1.0 $(1.1) $(1.2)GME18,704 22,235 (3,531) (15.9)% $(0.7) $(0.1) $0.6 $(3.3)GMIO12,626 14,392 (1,766) (12.3)% $(1.2) $0.7 $0.1 $(1.4)GMSA7,820 13,115 (5,295) (40.4)% $(3.9) $0.6 $0.9 $(2.9)Corporate150 151 (1) (0.7)% $—Automotive145,922 151,092 (5,170) (3.4)% $1.0 $2.1 $0.6 $(8.8)GM Financial6,434 4,837 1,597 33.0 % $1.6Total net sales and revenue$152,356 $155,929 $(3,573) (2.3)% $1.0 $2.1 $0.6 $(7.2)Automotive Cost of Sales Years Ended December 31, Favorable/(Unfavorable) Variance Due To 2016 2015 % Volume Mix Cost Other (Dollars in billions)GMNA$100,028 $89,173 $(10,855) (12.2)% $(7.6) $(2.0) $(1.7) $0.5GME17,557 18,062 505 2.8 % $(0.4) $0.1 $0.7 $0.1GMIO11,590 12,506 916 7.3 % $0.4 $(0.2) $0.4 $0.3GMSA6,950 8,416 1,466 17.4 % $0.4 $(0.3) $0.2 $1.2Corporate and eliminations208 164 (44) (26.8)% $(0.2) $0.1Total automotive cost of sales$136,333 $128,321 $(8,012) (6.2)% $(7.3) $(2.4) $(0.6) $2.2 Years Ended December 31, Favorable/(Unfavorable) Variance Due To 2015 2014 % Volume Mix Cost Other (Dollars in billions)GMNA$89,173 $89,371 $198 0.2% $(4.7) $(0.5) $3.7 $1.6GME18,062 21,712 3,650 16.8% $0.6 $— $0.3 $2.7GMIO12,506 14,009 1,503 10.7% $1.0 $(0.6) $0.6 $0.5GMSA8,416 12,736 4,320 33.9% $3.2 $(0.5) $(0.1) $1.7Corporate and eliminations164 254 90 35.4% $0.1Total automotive cost of sales$128,321 $138,082 $9,761 7.1% $— $(1.5) $4.6 $6.7The most significant element of our Automotive cost of sales is material cost which makes up approximately two-thirds of the total amount. The remainingportion includes labor costs, depreciation and amortization, engineering, and product warranty and recall campaigns.25Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESFactors which most significantly influence a region's profitability are industry volume, market share, and the relative mix of vehicles (cars, trucks,crossovers) sold. Variable profit is a key indicator of product profitability. Variable profit is defined as revenue less material cost, freight, the variablecomponent of manufacturing expense and warranty and recall-related costs. Vehicles with higher selling prices generally have higher variable profit.Refer to the regional sections of this MD&A for additional information on volume and mix.In the year ended December 31, 2016 unfavorable Cost was due primarily to: (1) increased other costs of $2.1 billion primarily manufacturing, engineering,depreciation and amortization and warranty which are inclusive of launch costs; partially offset by (2) decreased material and freight costs of $2.8 billionrelated to carryover vehicles, partially offset by increased material and freight costs of $1.7 billion related to vehicles launched within the last twelve monthsincorporating significant exterior and/or interior changes (Majors); and (3) impairments of $0.4 billion related to Thailand and Venezuela in 2015. In the yearended December 31, 2016 favorable Other was due primarily to the foreign currency effect of $2.1 billion due primarily to the BsF devaluation in 2015 andthe weakening of the Argentine Peso, Canadian Dollar and other currencies against the U.S. Dollar; and costs related to our exit of Russia of $0.2 billion in2015.In the year ended December 31, 2015 favorable Cost was due primarily to (1) a decrease in recall campaign and courtesy transportation charges of $2.8billion, including the $0.9 billion catch-up adjustment; (2) decreased material and freight costs of $2.9 billion related to carryover vehicles, partially offsetby increased material and freight costs of $0.7 billion related to Majors; (3) a net decrease in separation charges of $0.4 billion primarily related to theBochum plant closing in GME in 2014; (4) favorable intangible asset amortization of $0.3 billion; and (5) decreased costs of $0.3 billion related to parts andaccessories sales; partially offset by (6) an increase in engineering expense of $0.4 billion; and (7) an increase in warranty costs of $0.3 billion. In the yearended December 31, 2015 favorable Other was due primarily to favorable net foreign currency effect of $6.9 billion due primarily to the weakening of theEuro, Brazilian Real, Canadian Dollar, British Pound and Mexican Peso against the U.S. Dollar, partially offset by further BsF devaluation. Automotive Selling, General and Administrative Expense Years Ended December 31, Year Ended 2016 vs. 2015 Change Year Ended 2015 vs. 2014 Change 2016 2015 2014 Favorable/(Unfavorable) % Favorable/(Unfavorable) %Automotive selling, general andadministrative expense$11,710 $13,405 $12,158 $1,695 12.6% $(1,247) (10.3)%In the year ended December 31, 2016 Automotive selling, general and administrative expense decreased due primarily to: (1) a net decrease in charges of$1.5 billion for matters related to the ignition switch recall; and (2) favorable net foreign currency effect of $0.2 billion due primarily to the weakening ofvarious currencies against the U.S. Dollar.In the year ended December 31, 2015 Automotive selling, general and administrative expense increased due primarily to: (1) charges related to the IgnitionSwitch Recall of $1.4 billion; (2) increased advertising expense of $0.2 billion; (3) an increase in employee related costs of $0.1 billion; and (4) costs relatedto the Russia exit of $0.1 billion; partially offset by (5) favorable net foreign currency effect of $0.7 billion due primarily to the weakening of the Euro andBrazilian Real against the U.S. Dollar.Income Tax Expense (Benefit) Years Ended December 31, Year Ended 2016 vs. 2015 Change Year Ended 2015 vs. 2014 Change 2016 2015 2014 Favorable/(Unfavorable) % Favorable/(Unfavorable) %Income tax expense (benefit)$2,416 $(1,897) $228 $(4,313) n.m. $2,125 n.m.________n.m. = not meaningfulIn the year ended December 31, 2016 Income tax expense increased due primarily to the absence of the 2015 income tax benefit from the release of GME'svaluation allowance of $3.9 billion and an increase in income tax expense of $1.0 billion due primarily to an increase in pre-tax income; partially offset by$0.6 billion in tax benefits related to foreign currency losses.26Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESIn the year ended December 31, 2015 Income tax expense decreased due primarily to the income tax benefit from the release of GME's valuationallowances of $3.9 billion; partially offset by an increase in income tax expense of $1.8 billion due primarily to an increase in pre-tax income.For the year ended December 31, 2016 our effective tax rate was 21%, and we expect the effective tax rate to be similar for the year ending December 31,2017. Refer to Note 16 to our consolidated financial statements for additional information related to Income tax expense (benefit).GM North America Years Ended December 31, Favorable/(Unfavorable) Variance Due To 2016 2015 % Volume Mix Price Cost Other (Dollars in billions)Total net sales and revenue$119,022 $106,622 $12,400 11.6% $11.0 $0.5 $1.7 $(0.8)EBIT-adjusted$12,047 $11,026 $1,021 9.3% $3.4 $(1.5) $1.7 $(2.2) $(0.3)EBIT-adjusted margin10.1% 10.3% (0.2)% (Vehicles in thousands) Wholesale vehicle sales3,958 3,558 400 11.2% Years Ended December 31, Favorable/(Unfavorable) Variance Due To 2015 2014 % Volume Mix Price Cost Other (Dollars in billions)Total net sales and revenue$106,622 $101,199 $5,423 5.4% $6.8 $1.0 $(1.1) $(1.2)EBIT-adjusted$11,026 $6,603 $4,423 67.0% $2.1 $0.5 $(1.1) $2.9 $0.1EBIT-adjusted margin10.3% 6.5% 3.8% (Vehicles in thousands) Wholesale vehicle sales3,558 3,320 238 7.2% GMNA Total Net Sales and Revenue In the year ended December 31, 2016 Total net sales and revenue increased due primarily to: (1) increased netwholesale volumes reflecting our strategic decision to reduce daily rental activity, strong retail demand for the Chevrolet Malibu and Spark, full-size trucksand SUVs and the Buick Envision; (2) favorable pricing for Majors of $1.8 billion; and (3) favorable mix associated with full-size trucks and SUVs and areduction in rental car activities, partially offset by the Chevrolet Malibu and Spark; partially offset by (4) unfavorable Other due primarily to the foreigncurrency effect resulting from the weakening of the Mexican Peso and Canadian Dollar against the U.S. Dollar.In the year ended December 31, 2015 Total net sales and revenue increased due primarily to: (1) increased net wholesale volumes associated with full-sizeSUVs, mid-size pick-ups and the Chevrolet Trax, Impala and Cruze, partially offset by decreases in the Chevrolet Malibu; and (2) favorable mix due to full-size SUVs and full-size pick-ups partially offset by an increase in rental cars sold at auction and the Chevrolet Trax; partially offset by (3) unfavorable pricingprimarily related to carryovers including passenger cars and compact SUVs; and (4) unfavorable Other due primarily to unfavorable foreign currency effectrelated to the weakening of the Canadian Dollar and the Mexican Peso against the U.S. Dollar of $1.7 billion, partially offset by increased revenue related toOnStar of $0.2 billion.GMNA EBIT-Adjusted The most significant factors which influence profitability are industry volume and market share. While not as significant asindustry volume and market share, another factor affecting profitability is the relative mix of vehicles sold. Trucks, crossovers and cars sold currently have avariable profit of approximately 180%, 70% and 30% of our GMNA portfolio on a weighted-average basis.In the year ended December 31, 2016 EBIT-adjusted increased due primarily to: (1) increased net wholesale volumes; and (2) favorable pricing; partiallyoffset by (3) unfavorable Cost including increased material costs for Majors of $1.1 billion, restructuring charges of $0.2 billion related to the UAW cashseverance incentive program and increased other costs of $2.8 billion primarily engineering, depreciation and amortization, manufacturing, warranty andmarketing which are inclusive of launch costs, partially offset by favorable material and freight costs related to carryover vehicles of $2.0 billion; (4)unfavorable mix associated with the Chevrolet Malibu, Volt and Spark, partially offset by full-size trucks and SUVs and a reduction in rental car activities;and (5) unfavorable Other due primarily to the foreign currency effect resulting from the weakening of the Mexican Peso and Canadian Dollar against the U.S.Dollar.27Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESIn the year ended December 31, 2015 EBIT-adjusted increased due primarily to: (1) favorable Cost of $2.9 billion including decreased material and freightcosts of $2.2 billion and a decrease in recall-related charges of $1.9 billion, partially offset by warranty of $0.3 billion, engineering of $0.3 billion, GeneralMotors of Canada Company (GM Canada) pension curtailment and restructuring charges of $0.2 billion and advertising of $0.2 billion; (2) increased netwholesale volumes; and (3) favorable mix; partially offset by (4) unfavorable pricing.GM EuropeYears Ended December 31,Favorable/(Unfavorable) Variance Due To20162015%VolumeMixPrice CostOther(Dollars in billions)Total net sales and revenue$18,707$18,704$3—%$0.5$(0.3)$0.4 $(0.7)EBIT (loss)-adjusted$(257)$(813)$55668.4%$0.1$(0.2)$0.3 $0.8$(0.4)EBIT (loss)-adjusted margin(1.4)% (4.3)% 2.9% (Vehicles in thousands) Wholesale vehicle sales1,162 1,127 35 3.1% Years Ended December 31,Favorable/(Unfavorable) Variance Due To20152014%VolumeMixPrice CostOther(Dollars in billions)Total net sales and revenue$18,704$22,235$(3,531)(15.9)%$(0.7)$(0.1)$0.6 $(3.3)EBIT (loss)-adjusted$(813)$(1,369)$55640.6 %$(0.2)$(0.1)$0.8 $0.3$(0.2)EBIT (loss)-adjusted margin(4.3)% (6.2)% 1.9% (Vehicles in thousands) Wholesale vehicle sales1,127 1,172 (45) (3.8)% GME Total Net Sales and Revenue In the year ended December 31, 2016 Total net sales and revenue remained flat due primarily to: (1) increased netwholesale volumes associated with higher demand primarily for the Astra across the region, partially offset by decreases across the Russian portfolio anddecreased sales of the Corsa and Insignia in the U.K.; and (2) favorable pricing for Majors primarily related to the Astra; offset by (3) unfavorable country andvehicle mix; and (4) unfavorable Other due primarily to the foreign currency effect resulting from the weakening of the British Pound against the U.S. Dollar.In the year ended December 31, 2015 Total net sales and revenue decreased due primarily to: (1) decreased net wholesale volumes associated withdecreases across the Russian portfolio and lower demand for the Zafira multipurpose vehicle across the region, partially offset by higher demand primarily forthe Vivaro commercial van, the Mokka crossover and the Astra and the recently launched KARL passenger vehicles across the region; and (2) unfavorableOther due primarily to the foreign currency effect resulting from the weakening of the Euro, British Pound and Russian Ruble against the U.S. Dollar;partially offset by (3) favorable pricing primarily related to the next generation Corsa passenger vehicle and Vivaro and the recently launched nextgeneration Astra.GME EBIT (Loss)-Adjusted In the year ended December 31, 2016 EBIT (loss)-adjusted decreased due primarily to: (1) favorable Cost due primarily tofavorable material and freight costs related to carryover vehicles of $0.5 billion and fixed cost improvements of $0.5 billion, partially offset by unfavorablematerial performance for Majors related to the Astra of $0.4 billion; (2) favorable pricing; and (3) increased net wholesale volumes; partially offset by (4)unfavorable country and vehicle mix; and (5) unfavorable Other due primarily to the foreign currency effect resulting from the weakening of the BritishPound against the U.S. Dollar as a result of Brexit.In the year ended December 31, 2015 EBIT (loss)-adjusted decreased due primarily to: (1) favorable pricing; and (2) favorable Cost due primarily to a netdecrease in restructuring related charges of $0.7 billion, partially offset by unfavorable material costs of $0.2 billion primarily related to the next generationCorsa and Vivaro; partially offset by (3) decreased net wholesale volumes; and (4) unfavorable Other due to unfavorable foreign currency effect of $0.2billion.GM International Operations28Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES Years Ended December 31, Favorable/(Unfavorable) Variance Due To 2016 2015 % Volume Mix Price Cost Other (Dollars in billions)Total net sales and revenue$11,749 $12,626 $(877) (6.9)% $(0.5) $(0.1) $0.1 $(0.4)EBIT-adjusted$1,135 $1,397 $(262) (18.8)% $(0.1) $(0.3) $0.1 $0.2 $(0.2)EBIT-adjusted margin9.7% 11.1% (1.4)% Equity income — Automotive ChinaJVs$1,973 $2,057 $(84) (4.1)% EBIT (loss)-adjusted — excludingEquity income$(838) $(660) $(178) (27.0)% (Vehicles in thousands) Wholesale vehicle sales559 588 (29) (4.9)% Years Ended December 31, Favorable/(Unfavorable) Variance Due To 2015 2014 % Volume Mix Price Cost Other (Dollars in billions)Total net sales and revenue$12,626 $14,392 $(1,766) (12.3)% $(1.2) $0.7 $0.1 $(1.4)EBIT-adjusted$1,397 $1,222 $175 14.3 % $(0.2) $0.1 $0.2 $0.3 $(0.2)EBIT-adjusted margin11.1% 8.5% 2.6% Equity income — Automotive ChinaJVs$2,057 $2,066 $(9) (0.4)% EBIT (loss)-adjusted —excludingEquity income$(660) $(844) $184 21.8 % (Vehicles in thousands) Wholesale vehicle sales588 655 (67) (10.2)% The vehicle sales of our Automotive China JVs are not recorded in Total net sales and revenue. The results of our joint ventures are recorded in Equityincome, which is included in EBIT-adjusted above.GMIO Total Net Sales and Revenue In the year ended December 31, 2016 Total net sales and revenue decreased due primarily to: (1) decreased wholesalevolumes of pick-up trucks and passenger cars in Egypt and South Africa and full-size trucks and SUVs in the Middle East due to low oil prices, partiallyoffset by increased sales of the Chevrolet Spark and Malibu in Korea and the Middle East; and (2) unfavorable Other of $0.4 billion due primarily to theforeign currency effect resulting from the weakening of the Egyptian Pound and South African Rand against the U.S. Dollar.In the year ended December 31, 2015 Total net sales and revenue decreased due primarily to: (1) decreased wholesale volumes associated with thewithdrawal of the Chevrolet brand from Europe, decreased sales in Korea, India, Southeast Asia and South Africa, partially offset by increased wholesalevolumes of new full-size trucks and SUVs in the Middle East; and (2) unfavorable Other due primarily to the foreign currency effect of $1.0 billion resultingfrom the weakening of the Australian Dollar, South Korean Won and South African Rand against the U.S. Dollar and decreased sales of components, parts andaccessories of $0.4 billion; partially offset by (3) favorable mix and pricing primarily due to increased sales of full-size trucks and SUVs in the Middle East.GMIO EBIT-Adjusted In the year ended December 31, 2016 EBIT-adjusted decreased due primarily to: (1) unfavorable mix due primarily to decreasedsales of full size trucks and SUVs in the Middle East as a result of a weaker economy due to low oil prices; (2) unfavorable Other due primarily to the foreigncurrency effect resulting from the weakening of the Egyptian Pound and South African Rand against the U.S. Dollar; and (3) decreased wholesale volume;partially offset by (4) favorable Cost associated with material and freight performance related to carryover vehicles.In the year ended December 31, 2015 EBIT-adjusted increased due primarily to: (1) favorable pricing and mix in the Middle East due primarily to sales ofnew full-size trucks and SUVs; and (2) favorable cost due primarily to favorable material and freight performance of $0.3 billion; partially offset by (3)decreased net wholesale volumes; and (4) unfavorable Other due to the foreign currency effect.29Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESWe view the Chinese market as important to our global growth strategy and are employing a multi-brand strategy led by our Buick and Chevrolet brands.In the coming years we plan to increasingly leverage our global architectures to increase the number of product offerings under the Buick, Chevrolet andCadillac brands in China and continue to grow our business under the local Baojun and Wuling brands, with Baojun seizing the growth opportunities in lessdeveloped cities and markets. We operate in the Chinese market through a number of joint ventures and maintaining good relations with our joint venturepartners, which are affiliated with the Chinese government, is an important part of our China growth strategy.The following tables summarize certain key operational and financial data for the Automotive China JVs (vehicles in thousands): Years Ended December 31, 2016 2015 2014Wholesale vehicles including vehicles exported to markets outside of China4,013 3,794 3,613Total net sales and revenue$47,150 $44,959 $43,853Net income$4,117 $4,290 $4,312 December 31, 2016 December 31, 2015Cash and cash equivalents$8,197 $5,939Debt$246 $184GM South America Years Ended December 31, Favorable/(Unfavorable) Variance Due To 2016 2015 % Volume Mix Price Cost Other (Dollars in billions)Total net sales and revenue$7,223 $7,820 $(597) (7.6)% $(0.5) $0.2 $0.9 $(1.2)EBIT (loss)-adjusted$(374) $(622) $248 39.9 % $(0.1) $(0.2) $0.9 $0.1 $(0.5)EBIT (loss)-adjusted margin(5.2)% (8.0)% 2.8% (Vehicles in thousands) Wholesale vehicle sales568 603 (35) (5.8)% Years Ended December 31, Favorable/(Unfavorable) Variance Due To 2015 2014 % Volume Mix Price Cost Other (Dollars in billions)Total net sales and revenue$7,820 $13,115 $(5,295) (40.4)% $(3.9) $0.6 $0.9 $(2.9)EBIT (loss)-adjusted$(622) $(180) $(442) (245.6)% $(0.7) $0.1 $0.9 $(0.1) $(0.7)EBIT (loss)-adjusted margin(8.0)% (1.4)% (6.6)% (Vehicles in thousands) Wholesale vehicle sales603 886 (283) (31.9)% GMSA Total Net Sales and Revenue In the year ended December 31, 2016 Total net sales and revenue decreased due primarily to: (1) decreased wholesalevolumes due to difficult economic conditions in Brazil and Venezuela that drove an industry reduction of 12.3% compared to the same period in 2015 offsetby a gain in market share of 1.8% in Brazil; (2) unfavorable Other due primarily to the foreign currency effect resulting from the weakening of all currenciesacross the region against the U.S. Dollar; partially offset by (3) favorable pricing related to carryover vehicles due primarily to high inflation in Argentina;and (4) favorable mix due to the launch of Chevrolet Cruze in Brazil and increased sales of pick-up trucks in Argentina.In the year ended December 31, 2015 Total net sales and revenue decreased due primarily to: (1) decreased wholesale volumes associated with lowerdemand for the Chevrolet Celta, Onix and Prisma small vehicles and Cobalt sedan in Brazil and decreases across the portfolio primarily in Chile andColombia caused by difficult economic conditions; and (2) unfavorable Other due primarily to unfavorable foreign currency effect due to the weakening ofall currencies across the region against the U.S. Dollar; partially offset by (3) favorable pricing due primarily to high inflation in Venezuela and Argentina;and (4) favorable vehicle mix due to decreased sales of lower priced vehicles in Brazil and increased sales of the Chevrolet Silverado and Cruze in Venezuela.GMSA EBIT (Loss)-Adjusted In the year ended December 31, 2016 EBIT (loss)-adjusted decreased due primarily to: (1) favorable pricing; and (2)favorable Cost due primarily to lower engineering expenses; partially offset by (3) unfavorable mix due30Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESprimarily to the lack of vehicle sales in Venezuela; (4) unfavorable wholesale volumes; and (5) unfavorable Other due primarily to the foreign currency effectresulting from the weakening of all currencies across the region against the U.S. Dollar.In the year ended December 31, 2015 EBIT (loss)-adjusted increased due primarily to: (1) decreased wholesale volumes; and (2) unfavorable Other dueprimarily to the foreign currency effect due to the weakening of all currencies across the region against the U.S. Dollar; and (3) unfavorable Cost dueprimarily to IT expenses; partially offset by (4) favorable pricing.Venezuelan Operations Our operations in Venezuela, which remain consolidated, continue to be negatively impacted by economic recession and politicalinstability in the country. During the years ended December 31, 2015 and 2014 we recorded devaluation and asset impairment charges of $0.7 billion and$0.4 billion in Automotive cost of sales related to our inability to transact at the SICAD rate to obtain U.S. Dollars and the market restrictions imposed by theVenezuelan government. We monitor the environment in Venezuela closely to assess whether changes evolve such that we no longer maintain a controllingfinancial interest. Absent ongoing vehicle production, our Venezuelan subsidiaries may require additional financial support. At this time no decision hasbeen made whether we will provide further financial support if required. If a determination is made in the future that we no longer maintain control, we mayincur a charge based on exchange rates at December 31, 2016 of up to $0.1 billion.GM Financial Years Ended December 31, 2016 vs. 2015 Change 2015 vs. 2014 Change 2016 2015 2014 Amount % Amount %Total revenue$9,558 $6,454 $4,854 $3,104 48.1% $1,600 33.0%Provision for loan losses$669 $624 $604 $45 7.2% $20 3.3%Earnings before income taxes-adjusted$913 $837 $803 $76 9.1% $34 4.2% (Dollars in billions)Average debt outstanding$64.2 $44.6 $32.2 $19.6 43.9% $12.4 38.5%Effective rate of interest paid3.3% 3.6% 4.4% (0.3)% (0.8)% GM Financial Revenue In the year ended December 31, 2016 Total revenue increased due primarily to increased leased vehicle income of $3.1 billion dueto a larger lease portfolio.In the year ended December 31, 2015 Total revenue increased due primarily to: (1) increased leased vehicle income of $1.7 billion due to a larger leaseportfolio; partially offset by (2) net decrease in finance charge income and other income of $0.1 billion which consists of a decrease of $0.3 billion outside ofNorth America, partially offset by an increase of $0.2 billion in North America.GM Financial Earnings Before Income Taxes-Adjusted In the year ended December 31, 2016 Earnings before income taxes-adjusted increased dueprimarily to: (1) increased revenue of $3.1 billion; partially offset by (2) increased leased vehicle expenses of $2.3 billion due to a larger lease portfolio; (3)net increase in interest expense of $0.5 billion due to an increase in average debt outstanding; and (4) increased operating expenses of $0.2 billion.In the year ended December 31, 2015 Earnings before income taxes-adjusted remained flat due primarily to: (1) increased revenue of $1.6 billion; and (2)increased equity income of $0.1 billion from SAIC-GMAC Automotive Finance Company Limited (SAIC-GMAC); offset by (3) increased leased vehicleexpenses of $1.4 billion due to a larger lease portfolio; (4) net increase in interest expense of $0.2 billion which consists of an increase of $0.4 billion inNorth America due to an increase in average debt outstanding, partially offset by a decrease of $0.2 billion outside of North America; and (5) net increase inoperating expenses of $0.1 billion which consists of an increase of $0.2 billion in North America, partially offset by a decrease of $0.1 billion outside ofNorth America.Liquidity and Capital Resources We believe that our current level of cash and cash equivalents, marketable securities and availability under our revolvingcredit facilities will be sufficient to meet our liquidity needs. We expect to have substantial cash requirements going forward which we plan to fund throughtotal available liquidity and cash flows generated from operations. We also maintain access to the capital markets and may issue debt or equity securitiesfrom time to time, which may provide an additional source of liquidity. Our future uses of cash, which may vary from time to time based on market conditionsand other factors, are focused on three objectives: (1) reinvest in our business; (2) maintain an investment-grade balance sheet; and (3) return excess cash tostockholders. Our known future material uses of cash include, among other possible demands: (1) capital expenditures of approximately $9 billion annuallyas well as payments for engineering and product development activities; (2) payments31Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESassociated with previously announced vehicle recalls, the settlements of the multidistrict litigation and any other recall-related contingencies; (3) paymentsto service debt and other long-term obligations, including discretionary and mandatory contributions to our pension plans; (4) dividend payments on ourcommon stock that are declared by our Board of Directors; and (5) payments to purchase shares of our common stock authorized by our Board of Directors.Our liquidity plans are subject to a number of risks and uncertainties, including those described in the "Forward-Looking Statements" section of thisMD&A and Item 1A. Risk Factors, some of which are outside of our control.We continue to monitor and evaluate opportunities to strengthen our competitive position over the long-term while maintaining an investment-gradebalance sheet. These actions may include opportunistic payments to reduce our long-term obligations as well as the possibility of acquisitions, dispositions,investments with joint venture partners and strategic alliances that we believe would generate significant advantages and substantially strengthen ourbusiness. These actions may negatively impact our liquidity in the short term.Our senior management evaluates our capital allocation program on an ongoing basis and recommends any modifications to the program to our Board ofDirectors not less than once annually. Over the last six months of 2016, management conducted an extensive review of various capital allocation strategiesincluding consideration of potential variations in our capital structure, changes in the pacing and/or nature of return of capital to shareholders (including apotential increase in our share repurchase program) and issuance or distribution of preferred or other securities. We regularly engage with our shareholdersand received input as to the views of certain of our shareholders on capital allocation during this review. Ultimately, management reaffirmed and our Board ofDirectors approved the capital allocation program, which includes reinvesting in our business at an average target ROIC-adjusted rate of 20% or greater,maintaining a strong investment grade balance sheet, including a target cash balance of $20 billion, and returning remaining free cash flow to shareholders.We also announced in January 2017 that our Board of Directors had authorized the purchase of up to an additional $5 billion of our common stock with noexpiration date, subsequent to completing the remaining portion of the previously announced programs.As part of our capital allocation program we previously announced that our Board of Directors had authorized programs to purchase up to $5 billion and $4billion of our common stock before the end of 2016 and 2017. We completed the $5 billion program in the three months ended September 30, 2016 and $1billion of the $4 billion program in the three months ended December 31, 2016. Through February 1, 2017 we had purchased an aggregate of 180 millionshares of our outstanding common stock under our common stock repurchase program for $6.0 billion. In the year ended December 31, 2016, we returnedtotal cash to shareholders of $4.8 billion, consisting of dividends paid on our common stock and purchases of our common stock.In February 2016 we issued $2.0 billion in aggregate principal amount of automotive senior unsecured notes and used the entire net proceeds to funddiscretionary contributions to our U.S. hourly pension plan in the year ended December 31, 2016 to improve its funded status. Refer to Note 13 to ourconsolidated financial statements for additional information on the senior unsecured notes.In May 2016 we amended our two primary revolving credit facilities, increasing our aggregate borrowing capacity from $12.5 billion to $14.5 billion.These facilities consist of a three-year, $4.0 billion facility and a five-year, $10.5 billion facility. Both facilities are available to us as well as certain wholly-owned subsidiaries, including GM Financial. The three-year, $4.0 billion facility allows for borrowings in U.S. Dollars and other currencies and includes aGM Financial borrowing sub-limit of $1.0 billion and a letter of credit sub-facility of $1.0 billion. The five-year, $10.5 billion facility allows for borrowingsin U.S. Dollars and other currencies and includes a GM Financial borrowing sub-limit of $3.0 billion and a letter of credit sub-limit of $500 million.Automotive Liquidity Total available liquidity includes cash, cash equivalents, marketable securities and funds available under credit facilities. Theamount of available liquidity is subject to intra-month and seasonal fluctuations and includes balances held by various business units and subsidiariesworldwide that are needed to fund their operations.We manage our liquidity primarily at our treasury centers as well as at certain of our significant consolidated overseas subsidiaries. Over 90% of ouravailable liquidity excluding funds available under credit facilities was held within North America and at our regional treasury centers at December 31, 2016.Our available liquidity includes approximately $0.6 billion deemed indefinitely reinvested in our foreign subsidiaries. We have used and will continue touse other methods including intercompany loans to utilize these funds across our global operations as needed.Our cash equivalents and marketable securities balances are primarily denominated in U.S. Dollars and include investments in U.S. government and agencyobligations, foreign government securities, time deposits, corporate debt securities and mortgage32Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESand asset-backed securities. Our investment guidelines, which we may change from time to time, prescribe certain minimum credit worthiness thresholds andlimit our exposures to any particular sector, asset class, issuance or security type. The majority of our current investments in debt securities are with A/A2 orbetter rated issuers.We use credit facilities as a mechanism to provide additional flexibility in managing our global liquidity. The total size of our credit facilities was $14.6billion and $12.6 billion at December 31, 2016 and 2015, which consisted principally of our two primary revolving credit facilities. We did not have anyborrowings against our primary facilities, but had letters of credit outstanding under our sub-facility of $0.6 billion at December 31, 2016. GM Financial hadaccess to our revolving credit facilities at December 31, 2016 and 2015 but did not borrow against them. Refer to Note 13 to our consolidated financialstatements for additional information on credit facilities. At December 31, 2016 and 2015 we had intercompany loans from GM Financial of $0.5 billion and$0.4 billion, which consisted primarily of commercial loans to dealers we consolidate, and we had no intercompany loans to GM Financial. The followingtable summarizes our automotive available liquidity (dollars in billions): December 31, 2016 December 31, 2015Cash and cash equivalents$9.8 $12.1Marketable securities11.8 8.2Available liquidity21.6 20.3Available under credit facilities14.0 12.2Total automotive available liquidity$35.6 $32.5The following table summarizes the changes in our automotive available liquidity (dollars in billions): Year Ended December 31,2016Operating cash flow$14.3Capital expenditures(9.4)Dividends paid and payments to purchase common stock(4.8)Investment in Lyft(0.5)Acquisition of Cruise(0.3)Issuance of senior unsecured notes2.0Increase in available credit facilities1.8Total change in automotive available liquidity$3.1Automotive Cash Flow (Dollars in Billions) Years Ended December 31, 2016 vs. 2015Change 2015 vs. 2014Change 2016 2015 2014 Operating Activities Net income$8.4 $8.9 $3.5 $(0.5) $5.4Depreciation, amortization and impairments charges5.7 5.7 6.3 — (0.6)Pension and OPEB activities(4.0) (1.3) (0.9) (2.7) (0.4)Working capital2.2 0.2 (1.6) 2.0 1.8Equipment on operating leases0.5 0.2 (1.9) 0.3 2.1Accrued and other liabilities0.8 (1.0) 6.0 1.8 (7.0)Income taxes1.7 (2.7) (0.9) 4.4 (1.8)Undistributed earnings of nonconsolidated affiliates, net— — (0.3) — 0.3Other(1.0) — (0.1) (1.0) 0.1Net automotive cash provided by operating activities$14.3 $10.0 $10.1 $4.3 $(0.1)In the year ended December 31, 2016 the change in Pension and OPEB activities was due primarily to discretionary contributions of $2.0 billion made toour U.S. hourly pension plan and pension income from the refinement to the discount rate methodology33Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESfor service and interest cost. The change in Working capital was due primarily to increased accounts payable due to increased production volumes anddecreased inventories due to lower repurchased rental car activity. The change in Accrued and other liabilities was due primarily to an increase in salesincentives of $1.6 billion. The change in Income taxes was due primarily to the reversal of valuation allowances in 2015. The change in Other was dueprimarily to foreign exchange and increase in deposits.In the year ended December 31, 2015 the change in Working capital was due primarily to increased accounts payable due to increased production volumes.The change in Equipment on operating leases was due primarily to the reduction of units provided to rental car companies. The change in Accrued and otherliabilities was due primarily to recalls and deposits from rental car companies. The change in Income taxes was due primarily to the reversal of valuationallowances, partially offset by deferred tax expense in 2015 compared to deferred tax benefit in 2014. Years Ended December 31, 2016 vs. 2015Change 2015 vs. 2014Change 2016 2015 2014 Investing Activities Capital expenditures$(9.4) $(7.8) $(7.0) $(1.6) $(0.8)Acquisitions and liquidations of marketable securities, net(3.7) 0.9 (0.4) (4.6) 1.3Investment in Lyft(0.5) — — (0.5) —Acquisition of Cruise(0.3) — — (0.3) —Other0.1 — 0.3 0.1 (0.3)Net automotive cash used in investing activities$(13.8) $(6.9) $(7.1) $(6.9) $0.2In the year ended December 31, 2016 the change in Acquisitions and liquidations of marketable securities, net was due primarily to the acquisition ofsovereign debt and corporate debt available-for-sale securities. In the year ended December 31, 2015 the change in Acquisitions and liquidations ofmarketable securities, net was due primarily to the liquidation of our sovereign debt trading securities. Years Ended December 31, 2016 vs. 2015Change 2015 vs. 2014Change 2016 2015 2014 Financing Activities Issuance of senior unsecured notes$2.0 $— $2.5 $2.0 $(2.5)Redemption and purchase of Series A Preferred Stock— — (3.9) — 3.9Payments to purchase common stock(2.5) (3.5) (0.2) 1.0 (3.3)Dividends paid (excluding charge related to redemption and purchaseof Series A Preferred Stock)(2.3) (2.2) (2.4) (0.1) 0.2Other(0.3) (0.1) (0.1) (0.2) —Net automotive cash used in financing activities$(3.1) $(5.8) $(4.1) $2.7 $(1.7)In the year ended December 31, 2016 the change in Net automotive cash used in financing activities was due primarily to the issuance of senior unsecurednotes and the purchase of common stock as part of the common stock repurchase program. In the year ended December 31, 2015 the change in Netautomotive cash used in financing activities was due primarily to the purchase of common stock as part of the common stock repurchase program.Adjusted Automotive Free Cash Flow (Dollars in Billions) Years Ended December 31, 2016 2015 2014Net automotive cash provided by operating activities$14.3 $10.0 $10.1Less: capital expenditures(9.4) (7.8) (7.0)Adjustment – discretionary pension plan contributions2.0 — —Adjusted automotive free cash flow$6.9 $2.2 $3.134Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESStatus of Credit Ratings We receive ratings from four independent credit rating agencies: DBRS Limited, Fitch Ratings (Fitch), Moody's Investor Service(Moody's) and Standard & Poor's (S&P). All four credit rating agencies currently rate our corporate credit at investment grade. The following tablesummarizes our credit ratings at February 1, 2017: Corporate Revolving CreditFacilities Senior Unsecured OutlookDBRS LimitedBBB BBB N/A StableFitchBBB- BBB- BBB- PositiveMoody'sInvestment Grade Baa2 Baa3 StableS&PBBB BBB BBB StableRating actions taken by each of the credit rating agencies from January 1, 2016 through February 1, 2017 were as follows: (1) Moody’s revised theiroutlook to Positive from Stable in February 2016, and upgraded our debt rating, including the revolving credit facilities, to Baa2 from Baa3, and revised theiroutlook to Stable from Positive in January 2017. Our senior unsecured bonds were upgraded to Baa3 from Ba1 and remain notched below our revolvingcredit facilities rating; (2) S&P revised their outlook to Positive from Stable in April 2016, and upgraded our corporate rating, revolving credit facilitiesrating and senior unsecured rating to BBB from BBB- and revised their outlook to Stable from Positive in January 2017; (3) Fitch revised their outlook toPositive from Stable in June 2016; and (4) DBRS Limited upgraded our corporate rating and revolving credit facilities rating to BBB from BBB (low) andrevised their outlook to Stable from Positive in March 2016.Automotive Financing – GM Financial Liquidity GM Financial's primary sources of cash are finance charge income, leasing income and proceeds fromthe sale of terminated leased vehicles, servicing fees, net distributions from secured debt facilities, including securitizations, secured and unsecuredborrowings and collections and recoveries on finance receivables. GM Financial's primary uses of cash are purchases of retail finance receivables and leasedvehicles, the funding of commercial finance receivables, repayment of secured and unsecured debt, funding credit enhancement requirements in connectionwith securitizations and secured debt facilities, operating expenses, and interest costs. GM Financial continues to monitor and evaluate opportunities tooptimize its liquidity position and the mix of its debt. The following table summarizes GM Financial's available liquidity (dollars in billions): December 31, 2016 December 31, 2015Cash and cash equivalents$3.2 $3.1Borrowing capacity on unpledged eligible assets9.5 9.7Borrowing capacity on committed unsecured lines of credit0.5 0.9Available liquidity$13.2 $13.7In the year ended December 31, 2016 available liquidity decreased due primarily to increased usage of secured debt facilities and increased usage ofcommitted unsecured lines of credit primarily due to asset growth.GM Financial has the ability to borrow up to $1.0 billion against our three-year, $4.0 billion revolving credit facility and up to $3.0 billion against ourfive-year, $10.5 billion revolving credit facility. In September 2014 we and GM Financial entered into a support agreement which, among other things,established commitments of funding from us to GM Financial. This agreement also provides that we will continue to own all of GM Financial’s outstandingvoting shares so long as any unsecured debt securities remain outstanding at GM Financial. In addition we are required to use our commercially reasonableefforts to ensure GM Financial remains a subsidiary borrower under our corporate revolving credit facilities.Credit Facilities In the normal course of business, in addition to using its available cash, GM Financial utilizes borrowings under its credit facilities, whichmay be secured or unsecured, and GM Financial repays these borrowings as appropriate under its cash management strategy. At December 31, 2016 secured,committed unsecured and uncommitted unsecured credit facilities totaled $25.8 billion, $1.4 billion and $2.4 billion with advances outstanding of $9.8billion, $1.0 billion and $2.4 billion.GM Financial Cash Flow (Dollars in Billions)35Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES Years Ended December 31, 2016 vs. 2015Change 2015 vs. 2014Change 2016 2015 2014 Net cash provided by operating activities$4.9 $2.8 $1.9 $2.1 $0.9Net cash used in investing activities$(24.6) $(22.0) $(10.2) $(2.6) $(11.8)Net cash provided by financing activities$20.2 $19.5 $9.8 $0.7 $9.7In the years ended December 31, 2016 and 2015 Net cash provided by operating activities increased due primarily to an increase in leased vehicle income,partially offset by increased operating expenses and interest expense.In the year ended December 31, 2016 Net cash used in investing activities increased due primarily to: (1) increased purchases of leased vehicles of $4.5billion; and (2) increased purchases and funding of finance receivables of $2.0 billion; partially offset by (3) increased proceeds from the termination ofleased vehicles of $1.5 billion; (4) increased collections on finance receivables of $1.4 billion; and (5) prior year impact of cash used for the acquisition ofthe equity interest in SAIC-GMAC of $0.9 billion.In the year ended December 31, 2015 Net cash used in investing activities increased due primarily to: (1) increased purchases of leased vehicles of $10.4billion; (2) increased purchases and funding of finance receivables of $1.0 billion; and (3) net cash used for the acquisition of the equity interest in SAIC-GMAC of $0.9 billion; partially offset by (4) increased proceeds from the termination of leased vehicles of $0.6 billion.In the years ended December 31, 2016 and 2015 Net cash provided by financing activities increased due primarily to a net increase in borrowings.Off-Balance Sheet Arrangements We do not currently utilize off-balance sheet securitization arrangements. All trade or finance receivables and relatedobligations subject to securitization programs are recorded on our consolidated balance sheets at December 31, 2016 and 2015. Refer to Note 15 of ourconsolidated financial statements for detailed information related to guarantees we have provided and for our noncancelable operating lease obligations.Contractual Obligations and Other Long-Term Liabilities We have minimum commitments under contractual obligations, including purchase obligations.A purchase obligation is defined as an agreement to purchase goods or services that is enforceable and legally binding on us and that specifies all significantterms, including fixed or minimum quantities to be purchased or fixed minimum price provisions, and the approximate timing of the transaction. Based onthese definitions, the following table includes only those contracts which include fixed or minimum obligations. The majority of our purchases are notincluded in the table as they are made under purchase orders which are requirements based and accordingly do not specify minimum quantities. Thefollowing table summarizes aggregated information about our outstanding contractual obligations and other long-term liabilities at December 31, 2016: Payments Due by Period 2017 2018-2019 2020-2021 2022 and after TotalAutomotive debt$819 $1,584 $77 $7,950 $10,430Automotive Financing debt28,596 26,971 11,012 7,791 74,370Capital lease obligations356 197 50 218 821Automotive interest payments(a)582 1,030 934 6,927 9,473Automotive Financing interest payments(b)1,624 2,003 949 793 5,369Postretirement benefits(c)240 482 20 — 742Operating lease obligations, net232 411 278 272 1,193Other contractual commitments: Material788 956 107 144 1,995Marketing776 487 197 32 1,492Rental car repurchases2,965 — — — 2,965Other939 738 213 240 2,130Total contractual commitments(d)$37,917 $34,859 $13,837 $24,367 $110,980 Non-contractual postretirement benefits(e)$140 $261 $707 $9,673 $10,78136Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES__________(a)Amounts include automotive interest payments based on contractual terms and current interest rates on our debt and capital lease obligations. Automotive interest paymentsbased on variable interest rates were determined using the interest rate in effect at December 31, 2016.(b)GM Financial interest payments were determined using the interest rate in effect at December 31, 2016 for floating rate debt and the contractual rates for fixed rate debt. GMFinancial interest payments on floating rate tranches of the securitization notes payable were converted to a fixed rate based on the floating rate plus any expected hedgepayments.(c)Amounts include OPEB payments under the current U.S. contractual labor agreements through 2019 and Canada labor agreements through 2020. These agreements aregenerally renegotiated in the year of expiration. Amounts do not include pension funding obligations, which are discussed in Note 14 to our consolidated financial statements.(d)Amounts do not include future cash payments for long-term purchase obligations and other accrued expenditures (unless specifically listed in the table above) which wererecorded in Accounts payable or Accrued liabilities at December 31, 2016.(e)Amounts include all expected future payments for both current and expected future service at December 31, 2016 for OPEB obligations for salaried and hourly employeesextending beyond the current North American union contract agreements. Amounts do not include pension funding obligations, which are discussed in Note 14 to ourconsolidated financial statements.The table above does not reflect product warranty and related liabilities of $9.7 billion and unrecognized tax benefits of $1.2 billion due to the uncertaintyregarding the future cash outflows potentially associated with these amounts.Critical Accounting Estimates Accounting estimates are an integral part of the consolidated financial statements. These estimates require the use ofjudgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of thefinancial statements and the reported amounts of revenues and expenses in the periods presented. We believe the accounting estimates employed areappropriate and the resulting balances are reasonable; however, due to the inherent uncertainties in developing estimates actual results could differ from theoriginal estimates, requiring adjustments to these balances in future periods. Refer to Note 2 to our consolidated financial statements for our significantaccounting policies related to our critical accounting estimates.Pension and OPEB Plans Our defined benefit pension plans are accounted for on an actuarial basis, which requires the selection of various assumptions,including an expected long-term rate of return on plan assets, a discount rate, mortality rates of participants and expectation of mortality improvement. Theexpected long-term rate of return on U.S. plan assets that is utilized in determining pension expense is derived from periodic studies, which include a reviewof asset allocation strategies, anticipated future long-term performance of individual asset classes, risks using standard deviations and correlations of returnsamong the asset classes that comprise the plans' asset mix. While the studies give appropriate consideration to recent plan performance and historical returns,the assumptions are primarily long-term, prospective rates of return.In December 2016 an investment policy study was completed for the U.S. pension plans. The study resulted in new target asset allocations being approvedfor the U.S. pension plans with resulting changes to the expected long-term rate of return on assets. The weighted-average long-term rate of return on assetsdecreased from 6.3% at December 31, 2015 to 6.2% at December 31, 2016. The expected long-term rate of return on plan assets used in determining pensionexpense for non-U.S. plans is determined in a similar manner to the U.S. plans.Another key assumption in determining net pension and OPEB expense is the assumed discount rate used to discount plan obligations. We estimate theassumed discount rate for U.S. plans using a cash flow matching approach, which uses projected cash flows matched to spot rates along a high qualitycorporate yield curve to determine the weighted-average discount rate for the calculation of the present value of cash flows. Effective 2016 we applied theindividual annual yield curve rates instead of the assumed discount rate to determine the service cost and interest cost. This refinement more specificallylinks the cash flows related to service cost and interest cost to bonds maturing in their year of payment. The refinement reduced the service cost and interestcost in 2016 by $0.8 billion. There was no effect on the determination of the plan obligations which continues to be calculated using the assumed discountrate.We have reviewed and incorporated the mortality improvement tables published by the Society of Actuaries in the three months ended December 31, 2016that lowered life expectancies and thereby indicated the amount of estimated aggregate benefit payments to our U.S. pension plans' participants wasdecreasing. This change in assumption decreased the December 31, 2016 U.S. pension and OPEB plans’ benefit obligations by $0.9 billion.Significant differences in actual experience or significant changes in assumptions may materially affect the pension obligations. The effects of actualresults differing from assumptions and the changing of assumptions are included in unamortized net actuarial gains and losses that are subject to amortizationto pension expense over future periods. The unamortized pre-tax actuarial loss on our pension plans was $4.8 billion and $3.7 billion at December 31, 2016and 2015. The year-over-year change is primarily due37Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESto the decrease in discount rates partially offset by assumption changes, primarily the U.S. mortality improvement scale. At December 31, 2016 $2.9 billion ofthe unamortized pre-tax actuarial loss is outside the corridor (10% of the projected benefit obligation (PBO)) and subject to amortization. The weighted-average amortization period is approximately twelve years resulting in amortization expense of $0.2 billion in 2017.The underfunded status of the U.S. pension plans decreased by $3.2 billion in the year ended December 31, 2016 to $7.2 billion due primarily to: (1) afavorable effect of actual returns on plan assets of $4.0 billion; (2) contributions of $2.1 billion; and (3) favorable assumption changes, primarily the U.S.mortality improvement scale of $0.9 billion; partially offset by (4) interest and service cost of $2.4 billion; and (5) an unfavorable effect due to a decrease indiscount rates of $1.5 billion.The following table illustrates the sensitivity to a change in certain assumptions for the pension plans, holding all other assumptions constant: U.S. Plans(a) Non-U.S. Plans(a) Effect on 2017Pension Expense Effect onDecember 31,2016 PBO Effect on 2017Pension Expense Effect onDecember 31,2016 PBO25 basis point decrease in discount rate-$78 +$1,726 +$39 +$78825 basis point increase in discount rate+$59 -$1,652 -$13 -$74525 basis point decrease in expected rate of return on assets+$147 N/A +$31 N/A25 basis point increase in expected rate of return on assets-$147 N/A -$31 N/A__________(a)The sensitivity does not include the effects of the individual annual yield curve rates applied for the calculation of the service cost and interest cost effective in 2016.Refer to Note 14 to our consolidated financial statements for additional information on pension contributions, investment strategies, assumptions, thechange in benefit obligations and related plan assets, pension funding requirements and future net benefit payments. Refer to Note 2 to our consolidatedfinancial statements for a discussion of the inputs used to determine fair value for each significant asset class or category.Valuation of Deferred Tax Assets The ability to realize deferred tax assets depends on the ability to generate sufficient taxable income within thecarryback or carryforward periods provided for in the tax law for each applicable tax jurisdiction. The assessment regarding whether a valuation allowance isrequired or should be adjusted is based on an evaluation of possible sources of taxable income and also considers all available positive and negativeevidence factors. Our accounting for the valuation of deferred tax assets represents our best estimate of future events. Changes in our current estimates, due tounanticipated market conditions, governmental legislative actions or events, could have a material effect on our ability to utilize deferred tax assets.At December 31, 2016 total deferred tax assets were $40 billion and valuation allowances against those deferred tax assets were $4.6 billion. Refer to Note16 to our consolidated financial statements for additional information on the composition of these valuation allowances.If law is enacted that reduces the U.S. statutory tax rate, we would record a significant, one-time reduction to the net deferred tax assets and related increaseto income tax expense in the period that includes the enactment date of the tax rate change.Valuation of GM Financial Equipment on Operating Leases Assets and Residuals GM Financial has investments in leased vehicles recorded as operatingleases, which relate to vehicle leases to retail customers with lease terms ranging from two to five years. At the beginning of the lease contract a determinationis made of the estimated realizable value (i.e., residual value) of the vehicle at the end of the lease term, which is the critical assumption underlying theestimated carrying value of leased assets. The estimated realizable value is based on the lower of the contracted residual value or the current market estimateof residual value based on independent lease guides. Since the customer is not obligated to purchase the vehicle at the end of the contract, GM Financial isexposed to a risk of loss to the extent the value of the vehicle at the end of the lease term is below the residual value estimated at contract inception. Over thelife of the lease GM Financial evaluates the adequacy of the estimate of the residual value and may make adjustments to the extent the expected value of thevehicle at lease termination changes. Adjustments could result in a change in the depreciation rate of the leased asset or if an impairment exists, animpairment charge.The following table summarizes vehicles included in GM Financial equipment on operating leases, net (vehicles in thousands):38Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES December 31, 2016 December 31, 2015Cars430 271Trucks224 121Crossovers681 401Total1,335 793At December 31, 2016 GM Financial's estimated residual value of the leased assets at the end of the lease term was $23.6 billion. The following tableillustrates the effect of a 1% change in the estimated residual values at December 31, 2016, which will increase or decrease depreciation expense over theremaining term of GM Financial's operating leases, holding all other assumptions constant: Impact to DepreciationExpenseCars$53Trucks52Crossovers131Total$236Product Warranty and Recall Campaigns The estimates related to product warranties are established using historical information on the nature, frequencyand average cost of claims of each vehicle line or each model year of the vehicle line and assumptions about future activity and events. When little or noclaims experience exists for a model year or a vehicle line, the estimate is based on comparable models.In GMNA we primarily accrue the costs for recall campaigns at the time of vehicle sale. In the other regions, there is not sufficient historical data to supportthe application of an actuarial-based estimation technique and the estimated costs are accrued at the time when they are probable and reasonably estimable,which typically occurs once it is determined a specific recall campaign is needed and announced.The estimates related to recall campaigns accrued at the time of vehicle sale are established by applying a frequency times severity approach that considersthe number of recall events, the number of vehicles per recall event, the assumed number of vehicles that will be brought in by customers for repair (take rate)and the cost per vehicle for each recall event. These estimates consider the nature, frequency and magnitude of historical recall campaigns. Costs associatedwith recall campaigns not accrued at the time of vehicle sale are estimated based on the estimated cost of repairs and the estimated vehicles to be repaired.Depending on part availability and time to complete repairs we may, from time to time, offer courtesy transportation at no cost to our customers. Theseestimates are re-evaluated on an ongoing basis and based on the best available information. Revisions are made when necessary based on changes in thesefactors.The estimated amount accrued for recall campaigns at the time of vehicle sale is most sensitive to the estimated number of recall events, the number ofvehicles per recall event, the take rate, and the cost per vehicle for each recall event. The estimated cost of a recall campaign that is accrued on an individualbasis is most sensitive to our estimated assumed take rate that is primarily developed based on our historical take rate experience. A 10% increase in theestimated take rate for all recall campaigns would increase the estimated cost by approximately $0.3 billion.Actual experience could differ from the amounts estimated requiring adjustments to these liabilities in future periods. Due to the uncertainty and potentialvolatility of the factors contributing to developing estimates, changes in our assumptions could materially affect our results of operations.Sales Incentives The estimated effect of sales incentives offered to dealers and end customers is recorded as a reduction of Automotive net sales andrevenue at the later of the time of sale or announcement of an incentive program to dealers. There may be numerous types of incentives available at anyparticular time, including a choice of incentives for a specific model. Incentive programs are generally brand specific, model specific or sales region specificand are for specified time periods, which may be extended. Significant factors used in estimating the cost of incentives include the volume of vehicles thatwill be affected by the incentive programs offered by product, the product mix, the rate of customer acceptance of any incentive program and the likelihoodthat an incentive program will be extended, all of which are estimated based on historical experience and assumptions concerning customer behavior andfuture market conditions. When an incentive program is announced, the number of vehicles in dealer39Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESinventory eligible for the incentive program is determined and a reduction of Automotive net sales and revenue is recorded in the period in which theprogram is announced. If the actual number of affected vehicles differs from this estimate, or if a different mix of incentives is actually paid, the reduction inAutomotive net sales and revenue due to incentives could be affected. There are a multitude of inputs affecting the calculation of the estimate for salesincentives and an increase or decrease in any of these variables could have a significant effect on recorded sales incentives.Forward-Looking Statements In this 2016 Form 10-K and in reports we subsequently file and have previously filed with the SEC on Forms 10-K and 10-Qand file or furnish on Form 8-K, and in related comments by our management, we use words like “anticipate,” “appears,” “approximately,” “believe,”“continue,” “could,” “designed,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,”“potential,” “priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” or the negative of any of those words or similar expressionsto identify forward-looking statements that represent our current judgment about possible future events. In making these statements we rely on assumptionsand analyses based on our experience and perception of historical trends, current conditions and expected future developments as well as other factors weconsider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any events or financialresults, and our actual results may differ materially due to a variety of important factors, both positive and negative. These factors, which may be revised orsupplemented in subsequent reports on SEC Forms 10-Q and 8-K, include among others the following: (1) our ability to deliver new products, services andcustomer experiences in response to new participants in the automotive industry; (2) our ability to fund and introduce new and improved vehicle models thatare able to attract a sufficient number of consumers; (3) the success of our full-size pick-up trucks and SUVs, which may be affected by increases in the priceof oil; (4) global automobile market sales volume, which can be volatile; (5) aggressive competition in China; (6) the international scale and footprint of ouroperations which exposes us to a variety of domestic and foreign political, economic and regulatory risks, including the risk of changes in existing, theadoption of new, or the introduction of novel interpretations of, laws regulations, policies or other activities of governments, agencies and similarorganizations particularly laws, regulations and policies relating to free trade agreements, vehicle safety including recalls, and, including such actions thatmay affect the production, licensing, distribution or sale of our products, the cost thereof or applicable tax rates; (7) our joint ventures, which we cannotoperate solely for our benefit and over which we may have limited control; (8) our ability to comply with extensive laws and regulations applicable to ourindustry, including those regarding fuel economy and emissions; (9) costs and risks associated with litigation and government investigations including thepotential imposition of damages, substantial fines, civil lawsuits and criminal penalties, interruptions of business, modification of business practices,equitable remedies and other sanctions against us in connection with various legal proceedings and investigations relating to our various recalls; (10) ourability to comply with the terms of the DPA; (11) our ability to maintain quality control over our vehicles and avoid material vehicle recalls and the cost andeffect on our reputation and products; (12) the ability of our suppliers to deliver parts, systems and components without disruption and at such times to allowus to meet production schedules; (13) our dependence on our manufacturing facilities around the world; (14) our highly competitive industry, which ischaracterized by excess manufacturing capacity and the use of incentives and the introduction of new and improved vehicle models by our competitors; (15)our ability to realize production efficiencies and to achieve reductions in costs as we implement operating effectiveness initiatives throughout ourautomotive operations; (16) our ability to successfully restructure our operations in various countries; (17) our ability to manage risks related to securitybreaches and other disruptions to our vehicles, information technology networks and systems; (18) our continued ability to develop captive financingcapability through GM Financial; (19) significant increases in our pension expense or projected pension contributions resulting from changes in the value ofplan assets, the discount rate applied to value the pension liabilities or mortality or other assumption changes; and (20) significant changes in economic,political, regulatory environment, market conditions, foreign currency exchange rates or political stability in the countries in which we operate, particularlyChina, with the effect of competition from new market entrants and in the United Kingdom with passage of a referendum to discontinue membership in theEuropean Union.We caution readers not to place undue reliance on forward-looking statements. We undertake no obligation to update publicly or otherwise revise anyforward-looking statements, whether as a result of new information, future events or other factors that affect the subject of these statements, except where weare expressly required to do so by law.* * * * * * *Item 7A. Quantitative and Qualitative Disclosures About Market RiskAutomotive The overall financial risk management program is under the responsibility of the Chief Financial Officer with support from the Financial RiskCouncil which reviews and, where appropriate, approves strategies to be pursued to mitigate these risks. The Financial Risk Council comprises members ofour management and functions under the oversight of the Audit Committee and Finance Committee of the Board of Directors. The Audit Committee andFinance Committee assist and guide the Board of40Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESDirectors in its oversight of our financial and risk management strategies. A risk management control framework is utilized to monitor the strategies, risks andrelated hedge positions in accordance with the policies and procedures approved by the Financial Risk Council. Our financial risk management policy isdesigned to protect against risk arising from extreme adverse market movements on our key exposures.The following analyses provide quantitative information regarding exposure to foreign currency exchange rate risk and interest rate risk. Sensitivityanalysis is used to measure the potential loss in the fair value of financial instruments with exposure to market risk. The models used assume instantaneous,parallel shifts in exchange rates and interest rate yield curves. For options and other instruments with nonlinear returns, models appropriate to these types ofinstruments are utilized to determine the effect of market shifts. There are certain shortcomings inherent in the sensitivity analyses presented, due primarily tothe assumption that interest rates change in a parallel fashion and that spot exchange rates change instantaneously. In addition the analyses are unable toreflect the complex market reactions that normally would arise from the market shifts modeled and do not contemplate the effects of correlations betweenforeign currency pairs or offsetting long-short positions in currency pairs which may significantly reduce the potential loss in value.Foreign Currency Exchange Rate Risk We have foreign currency exposures related to buying, selling and financing in currencies other than thefunctional currencies of our operations. At December 31, 2016 our most significant foreign currency exposures were the Euro/British Pound, U.S.Dollar/Canadian Dollar, Euro/U.S. Dollar, U.S. Dollar/Mexican Peso, Euro/South Korean Won and U.S. Dollar/South Korean Won. Derivative instrumentssuch as foreign currency forwards, swaps and options are used primarily to hedge exposures with respect to forecasted revenues, costs and commitmentsdenominated in foreign currencies. At December 31, 2016 such contracts had remaining maturities of up to 12 months. At December 31, 2016 and 2015 the net fair value liability of financial instruments with exposure to foreign currency risk was $1.0 billion and $0.8 billion.These amounts are calculated utilizing a population of foreign currency exchange derivatives, embedded derivatives and foreign currency denominated debtand exclude the offsetting effect of foreign currency cash, cash equivalents and other assets. The potential loss in fair value for such financial instrumentsfrom a 10% adverse change in all quoted foreign currency exchange rates would have been $0.2 billion and $0.3 billion at December 31, 2016 and 2015.We are exposed to foreign currency risk due to the translation and remeasurement of the results of certain international operations into U.S. Dollars as partof the consolidation process. Fluctuations in foreign currency exchange rates can therefore create volatility in the results of operations and may adverselyaffect our financial condition.The following table summarizes the amounts of automotive foreign currency translation and transaction and remeasurement losses: Years Ended December 31, 2016 2015Translation losses recorded in Accumulated other comprehensive loss$176 $302Transaction and remeasurement losses recorded in earnings$345 $813Interest Rate Risk We are subject to market risk from exposure to changes in interest rates related to certain financial instruments, primarily debt, capitallease obligations and certain marketable securities. At December 31, 2016 and 2015 we did not have any interest rate swap positions to manage interest rateexposures in our automotive operations. At December 31, 2016 and 2015 the fair value liability of debt and capital leases was $11.6 billion and $9.1 billion.The potential increase in fair value resulting from a 10% decrease in quoted interest rates would have been $0.5 billion and $0.4 billion at December 31,2016 and 2015. At December 31, 2016 and 2015 we had marketable securities of $11.8 billion and $7.6 billion classified as available-for-sale and an insignificant amountand $0.6 billion classified as trading. The potential decrease in fair value from a 50 basis point increase in interest rates would have had an insignificanteffect at December 31, 2016 and 2015.Automotive Financing - GM FinancialInterest Rate Risk Fluctuations in market interest rates can affect GM Financial's gross interest rate spread, which is the difference between interest earnedon finance receivables and interest paid on debt. Typically retail finance receivables purchased by GM Financial bear fixed interest rates and are funded byvariable or fixed rate debt. Commercial finance receivables originated by GM Financial bear variable interest rates and are funded by variable rate debt. Thevariable rate debt is subject to adjustments to reflect41Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESprevailing market interest rates. To help mitigate interest rate risk or mismatched funding, GM Financial may employ hedging strategies to lock in theinterest rate spread.Fixed interest rate receivables purchased by GM Financial may be pledged to secure borrowings under its credit facilities. Amounts borrowed under thesecredit facilities bear interest at variable rates that are subject to frequent adjustments to reflect prevailing market interest rates. To protect the interest ratespread within each credit facility, GM Financial is contractually required to enter into interest rate cap agreements in connection with borrowings under itscredit facilities.In GM Financial's securitization transactions it can transfer fixed rate finance receivables to securitization trusts that, in turn, sell either fixed rate orfloating rate securities to investors. Derivative financial instruments, such as interest rate swaps and caps, are used to manage the gross interest rate spread onthe floating rate transactions.GM Financial had interest rate swaps and caps in asset positions with notional amounts of $22.7 billion and $10.4 billion and in liability positions withnotional amounts of $29.5 billion and $13.9 billion at December 31, 2016 and 2015. The fair value of these derivative financial instruments in assetpositions was insignificant and in liability positions was $341 million and insignificant at December 31, 2016 and 2015.The following table summarizes GM Financial's interest rate sensitive assets and liabilities, excluding derivatives, by year of expected maturity and the fairvalue of those assets and liabilities at December 31, 2016: 2017 2018 2019 2020 2021 Thereafter Fair ValueAssets Retail finance receivables Principal amounts$12,978 $9,169 $5,866 $3,189 $1,425 $559 $32,067Weighted-average annual percentage rate8.26% 8.17% 8.10% 8.05% 8.28% 10.51% Commercial finance receivables Principal amounts$10,395 $109 $103 $96 $157 $136 $10,672Weighted-average annual percentage rate5.06% 4.13% 4.14% 4.16% 4.20% 4.14% Liabilities Secured Debt: Credit facilities Principal amounts$8,582 $873 $314 $41 $7 $— $9,812Weighted-average interest rate2.60% 5.56% 5.78% 9.48% 8.65% —% Securitization notes Principal amounts$12,686 $10,700 $4,566 $1,223 $341 $— $29,545Weighted-average interest rate1.94% 2.10% 2.38% 2.85% 2.80% —% Unsecured Debt: Senior notes Principal amounts$2,854 $3,086 $5,877 $4,650 $4,750 $7,791 $29,182Weighted-average interest rate3.48% 3.08% 2.65% 3.02% 3.83% 3.81% Credit facilities and other unsecured debt Principal amounts$4,474 $1,081 $474 $— $— $— $6,038Weighted-average interest rate6.23% 6.13% 3.03% —% —% —% The impact of GM Financial's discount rate, prepayment and credit loss assumptions is consistent with assumptions applied to interest rate sensitive assetsand liabilities reported at December 31, 2015. GM Financial estimates the realization of finance receivables in future periods using discount rate, prepaymentand credit loss assumptions similar to its historical experience. Credit facilities and securitization notes payable amounts have been classified based onexpected payoff. Senior notes principal amounts have been classified based on maturity.Foreign Currency Exchange Rate Risk GM Financial is exposed to foreign currency risk due to the translation and remeasurement of the results of certaininternational operations into U.S. Dollars as part of the consolidation process. Fluctuations in foreign currency exchange rates can therefore create volatilityin the results of operations and may adversely affect GM Financial's financial condition.42Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESGM Financial primarily finances its receivables and leased assets with debt in the same currency. When a different currency is used GM Financial may useforeign currency swaps to convert substantially all of its foreign currency debt obligations to the local currency of the receivables and lease assets tominimize any impact to earnings.GM Financial had foreign currency swaps in asset positions with notional amounts of $1.6 billion and $1.5 billion and in liability positions with notionalamounts of $910 million and an insignificant amount at December 31, 2016 and 2015. The fair value of these derivative financial instruments wasinsignificant.The following table summarizes GM Financial's foreign currency translation and transaction and remeasurement losses: Years Ended December 31, 2016 2015Translation losses recorded in Accumulated other comprehensive loss$144 $669Transaction and remeasurement losses recorded in earnings$13 $16* * * * * * *43Table of ContentsREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM General Motors Company, its Directors, and Stockholders: We have audited the accompanying Consolidated Balance Sheets of General Motors Company and subsidiaries (the "Company") as of December 31, 2016and 2015, and the related Consolidated Statements of Income, Comprehensive Income, Cash Flows, and Equity for each of the three years in the period endedDecember 31, 2016. We also have audited the Company's internal control over financial reporting as of December 31, 2016, based on criteria established inInternal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. The Company'smanagement is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of theeffectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting.Our responsibility is to express an opinion on these financial statements and an opinion on the Company's internal control over financial reporting based onour audits.We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and whethereffective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a testbasis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates madeby management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining anunderstanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design andoperating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessaryin the circumstances. We believe that our audits provides a reasonable basis for our opinions.A company’s internal control over financial reporting is a process designed by, or under the supervision of, the company’s principal executive andprincipal financial officers, or persons performing similar functions, and effected by the company’s board of directors, management, and other personnel toprovide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertainto the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of managementand directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or dispositionof the company’s assets that could have a material effect on the financial statements.Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override ofcontrols, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of theeffectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because ofchanges in conditions, or that the degree of compliance with the policies or procedures may deteriorate.In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of General MotorsCompany and subsidiaries as of December 31, 2016 and 2015, and the results of their operations and their cash flows for each of the three years in the periodended December 31, 2016, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the Companymaintained, in all material respects, effective internal control over financial reporting as of December 31, 2016, based on the criteria established in InternalControl - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission./s/ DELOITTE & TOUCHE LLPDetroit, MichiganFebruary 7, 201744Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESItem 8. Financial Statements and Supplementary DataCONSOLIDATED INCOME STATEMENTS(In millions, except per share amounts) Years Ended December 31, 2016 2015 2014Net sales and revenue Automotive$156,849 $145,922 $151,092GM Financial9,531 6,434 4,837Total net sales and revenue166,380 152,356 155,929Costs and expenses Automotive cost of sales136,333 128,321 138,082GM Financial interest, operating and other expenses8,792 5,733 4,039Automotive selling, general and administrative expense11,710 13,405 12,158Goodwill impairment charges— — 120Total costs and expenses156,835 147,459 154,399Operating income9,545 4,897 1,530Automotive interest expense572 443 403Interest income and other non-operating income, net (Note 18)429 621 823Gain on extinguishment of debt (Note 13)— 449 202Equity income (Note 7)2,282 2,194 2,094Income before income taxes11,684 7,718 4,246Income tax expense (benefit) (Note 16)2,416 (1,897) 228Net income9,268 9,615 4,018Net (income) loss attributable to noncontrolling interests159 72 (69)Net income attributable to stockholders$9,427 $9,687 $3,949 Net income attributable to common stockholders$9,427 $9,687 $2,804 Earnings per share (Note 20) Basic Basic earnings per common share$6.12 $6.11 $1.75Weighted-average common shares outstanding1,540 1,586 1,605Diluted Diluted earnings per common share$6.00 $5.91 $1.65Weighted-average common shares outstanding1,570 1,640 1,687CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(In millions) Years Ended December 31, 2016 2015 2014Net income$9,268 $9,615 $4,018Other comprehensive income (loss), net of tax (Note 19) Foreign currency translation adjustments and other(384) (955) (478)Defined benefit plans(969) 1,011 (4,505)Other comprehensive income (loss), net of tax(1,353) 56 (4,983)Comprehensive income (loss)7,915 9,671 (965)Comprehensive (income) loss attributable to noncontrolling interests218 53 (46)Comprehensive income (loss) attributable to stockholders$8,133 $9,724 $(1,011)Reference should be made to the notes to consolidated financial statements.45Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In millions, except per share amounts) December 31, 2016 December 31, 2015ASSETS Current Assets Cash and cash equivalents$12,960 $15,238Marketable securities (Note 3)11,841 8,163Accounts and notes receivable (net of allowance of $303 and $327)9,638 8,337GM Financial receivables, net (Note 4; Note 11 at VIEs)22,065 18,051Inventories (Note 5)13,788 13,764Equipment on operating leases, net (Note 6)1,896 2,783Other current assets (Note 3; Note 11 at VIEs)4,015 3,072Total current assets76,203 69,408Non-current Assets GM Financial receivables, net (Note 4; Note 11 at VIEs)20,724 18,500Equity in net assets of nonconsolidated affiliates (Note 7)8,996 9,201Property, net (Note 8)35,820 31,229Goodwill and intangible assets, net (Note 10)6,259 5,947GM Financial equipment on operating leases, net (Note 6; Note 11 at VIEs)34,526 20,172Deferred income taxes (Note 16)35,092 36,860Other assets (Note 3; Note 11 at VIEs)4,070 3,021Total non-current assets145,487 124,930Total Assets$221,690 $194,338LIABILITIES AND EQUITY Current Liabilities Accounts payable (principally trade)$26,961 $24,062Short-term debt and current portion of long-term debt (Note 13) Automotive1,167 817GM Financial (Note 11 at VIEs)27,861 18,745Accrued liabilities (Note 12)29,192 27,593Total current liabilities85,181 71,217Non-current Liabilities Long-term debt (Note 13) Automotive9,585 7,948GM Financial (Note 11 at VIEs)46,015 35,601Postretirement benefits other than pensions (Note 14)5,803 5,685Pensions (Note 14)17,951 20,911Other liabilities (Note 12)13,080 12,653Total non-current liabilities92,434 82,798Total Liabilities177,615 154,015Commitments and contingencies (Note 15) Equity (Note 19) Common stock, $0.01 par value15 15Additional paid-in capital26,983 27,607Retained earnings26,168 20,285Accumulated other comprehensive loss(9,330) (8,036)Total stockholders’ equity43,836 39,871Noncontrolling interests239 452Total Equity44,075 40,323Total Liabilities and Equity$221,690 $194,338Reference should be made to the notes to consolidated financial statements.46Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(In millions) Years Ended December 31, 2016 2015 2014Cash flows from operating activities Net income$9,268 $9,615 $4,018Depreciation, amortization and impairment charges10,408 8,017 7,238Foreign currency remeasurement and transaction losses358 829 437Undistributed earnings of nonconsolidated affiliates, net(15) (147) (301)Pension contributions and OPEB payments(3,465) (1,600) (1,315)Pension and OPEB (income) expense, net(553) 321 439Gains on extinguishment of debt— (449) (202)Provision (benefit) for deferred taxes1,886 (2,757) (574)Change in other operating assets and liabilities (Note 24)(438) (2,025) 247Other operating activities(904) (113) 74Net cash provided by operating activities16,545 11,691 10,061Cash flows from investing activities Expenditures for property(9,542) (7,874) (7,091)Available-for-sale marketable securities, acquisitions(15,182) (8,113) (7,636)Trading marketable securities, acquisitions(262) (1,250) (1,518)Available-for-sale marketable securities, liquidations10,871 8,463 6,874Trading marketable securities, liquidations872 1,758 1,881Acquisition of companies/investments, net of cash acquired(809) (928) (53)Purchases of finance receivables, net(17,869) (17,495) (14,744)Principal collections and recoveries on finance receivables13,172 11,726 10,860Purchases of leased vehicles, net(19,624) (15,158) (4,776)Proceeds from termination of leased vehicles2,557 1,096 533Other investing activities173 65 311Net cash used in investing activities(35,643) (27,710) (15,359)Cash flows from financing activities Net increase in short-term debt798 1,128 391Proceeds from issuance of debt (original maturities greater than three months)45,141 35,679 31,373Payments on debt (original maturities greater than three months)(23,815) (17,256) (19,524)Payments to purchase stock(2,500) (3,520) (3,277)Dividends paid (including charge related to redemption of Series A Preferred Stock)(2,368) (2,242) (3,165)Other financing activities(117) (103) (123)Net cash provided by financing activities17,139 13,686 5,675Effect of exchange rate changes on cash, cash equivalents and restricted cash(213) (1,524) (1,230)Net decrease in cash, cash equivalents and restricted cash(2,172) (3,857) (853)Cash, cash equivalents and restricted cash at beginning of period17,332 21,189 22,042Cash, cash equivalents and restricted cash at end of period$15,160 $17,332 $21,189 Significant Non-cash Investing and Financing Activity Non-cash property additions$4,765 $4,676 $3,313Non-cash business acquisition (Note 9)$290 Reference should be made to the notes to consolidated financial statements.47Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF EQUITY(In millions) Series APreferredStock Common Stockholders’ NoncontrollingInterests Total EquityCommonStock AdditionalPaid-inCapital RetainedEarnings Accumulated OtherComprehensive Loss Balance at January 1, 2014$3,109 $15 $28,780 $13,816 $(3,113) $567 $43,174Net income— — — 3,949 — 69 4,018Other comprehensive loss— — — — (4,960) (23) (4,983)Redemption and cancellation of Series A Preferred Stock(3,109) — — — — — (3,109)Purchase of common stock— — (85) (83) — — (168)Exercise of common stock warrants— 1 38 — — — 39Stock based compensation— — 206 (17) — — 189Cash dividends paid on Series A Preferred Stock and charge relatedto redemption of Series A Preferred Stock— — — (1,160) — — (1,160)Cash dividends paid on common stock— — — (1,928) — — (1,928)Dividends declared or paid to noncontrolling interests— — — — — (73) (73)Other— — (2) — — 27 25Balance at December 31, 2014$— 16 28,937 14,577 (8,073) 567 36,024Net income — — 9,687 — (72) 9,615Other comprehensive income — — — 37 19 56Purchase of common stock (1) (1,745) (1,774) — — (3,520)Exercise of common stock warrants — 46 — — — 46Stock based compensation — 369 (31) — — 338Cash dividends paid on common stock — — (2,174) — — (2,174)Dividends declared or paid to noncontrolling interests — — — — (75) (75)Other — — — — 13 13Balance at December 31, 2015 15 27,607 20,285 (8,036) 452 40,323Net income — — 9,427 — (159) 9,268Other comprehensive loss — — — (1,294) (59) (1,353)Issuance of common stock — 290 — — — 290Purchase of common stock — (1,320) (1,180) — — (2,500)Exercise of common stock warrants — 89 — — — 89Stock based compensation — 317 (27) — — 290Cash dividends paid on common stock — — (2,337) — — (2,337)Dividends declared or paid to noncontrolling interests — — — — (31) (31)Other — — — — 36 36Balance at December 31, 2016 $15 $26,983 $26,168 $(9,330) $239 $44,075Reference should be made to the notes to consolidated financial statements.48Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSNote 1. Nature of Operations and Basis of PresentationGeneral Motors Company was incorporated as a Delaware corporation in 2009. We design, build and sell cars, trucks, crossovers and automobile partsworldwide. We also provide automotive financing services through GM Financial. We analyze the results of our business through the following segments:GMNA, GME, GMIO, GMSA and GM Financial. Nonsegment operations and Maven, our ride- and car-sharing business, are classified as Corporate. Corporateincludes certain centrally recorded income and costs such as interest, income taxes, corporate expenditures including autonomous vehicle-relatedengineering costs and certain nonsegment specific revenues and expenses.Principles of Consolidation The consolidated financial statements are prepared in conformity with U.S. GAAP. All intercompany balances and transactionshave been eliminated in consolidation. Except for per share amounts or as otherwise specified, amounts presented within tables are stated in millions.We consolidate entities that we control due to ownership of a majority voting interest and we consolidate variable interest entities (VIEs) when we havevariable interests and are the primary beneficiary. We continually evaluate our involvement with VIEs to determine when these criteria are met. Our share ofearnings or losses of nonconsolidated affiliates is included in our consolidated operating results using the equity method of accounting when we are able toexercise significant influence over the operating and financial decisions of the affiliate. We use the cost method of accounting if we are not able to exercisesignificant 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. Theseestimates require the use of judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets andliabilities at the date of the financial statements and the reported amounts of revenues and expenses in the periods presented. We believe that the accountingestimates employed are appropriate and the resulting balances are reasonable; however, due to the inherent uncertainties in making estimates actual resultscould differ from the original estimates, requiring adjustments to these balances in future periods.GM Financial The amounts presented for GM Financial have been adjusted to include the effect of our tax attributes on GM Financial's deferred taxpositions and provision for income taxes, which are not applicable to GM Financial on a stand-alone basis, and to eliminate the effect of transactions betweenGM Financial and the other members of the consolidated group. Accordingly, the amounts presented will differ from those presented by GM Financial on astand-alone basis.Note 2. Significant Accounting PoliciesThe accounting policies which follow are utilized by our automotive and automotive financing operations, unless otherwise indicated.Revenue RecognitionAutomotive Automotive net sales and revenue primarily consist of revenue generated from the sale of vehicles. Vehicle sales are recorded when title andrisks and rewards of ownership have passed to our customers. For the majority of our automotive sales this occurs when a vehicle is released to the carrierresponsible for transporting it to a dealer and when collectability is reasonably assured. Vehicle sales are recorded when the vehicle is delivered to the dealerin most remaining cases. Provisions for recurring or announced dealer and customer sales and leasing incentives, consisting of allowances and rebates, arerecorded as reductions to Automotive net sales and revenue at the time of vehicle sale. All other incentives, allowances and rebates related to vehiclespreviously sold are recorded as reductions to Automotive net sales and revenue when announced. Taxes assessed by various government entities, such assales, use and value-added taxes, collected at the time of sale are excluded from Automotive net sales and revenue.Vehicle sales to daily rental car companies with guaranteed repurchase obligations are accounted for as operating leases. Estimated lease revenue isrecorded ratably over the estimated term of the lease based on the difference between net sales proceeds and the guaranteed repurchase amount. Thedifference between the cost of the vehicle and estimated residual value is depreciated on a straight-line basis over the estimated term of the lease.Automotive Financing - GM Financial Finance charge income earned on receivables is recognized using the effective interest method. Fees andcommissions (including incentive payments) received and direct costs of originating loans are deferred and amortized over the term of the related financereceivables using the effective interest method and are removed from the consolidated49Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)balance sheets when the related finance receivables are sold, charged off or paid in full. Accrual of finance charge income on retail finance receivables isgenerally suspended on accounts that are more than 60 days delinquent, accounts in bankruptcy and accounts in repossession. Payments received onnonaccrual loans are first applied to any fees due, then to any interest due and then any remaining amounts are recorded to principal. Interest accrualgenerally resumes once an account has received payments bringing the delinquency to less than 60 days past due. Accrual of finance charge income oncommercial finance receivables is generally suspended on accounts that are more than 90 days delinquent, upon receipt of a bankruptcy notice from aborrower, or where reasonable doubt exists about the full collectability of contractually agreed upon principal and interest. Payments received on nonaccrualloans are first applied to principal. Interest accrual resumes once an account has received payments bringing the account fully current and collection ofcontractual 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 and incentives, is recorded as operating leaserevenue on a straight-line basis over the term of the lease agreement.Advertising and Promotion Expenditures Advertising and promotion expenditures, which are expensed as incurred in Automotive selling, general andadministrative expense, were $5.3 billion, $5.1 billion and $5.2 billion in the years ended December 31, 2016, 2015 and 2014.Research and Development Expenditures Research and development expenditures, which are expensed as incurred in Automotive cost of sales, were $8.1billion, $7.5 billion and $7.4 billion in the years ended December 31, 2016, 2015 and 2014.Cash Equivalents and Restricted Cash Cash equivalents are defined as short-term, highly-liquid investments with original maturities of 90 days or less. Cashand cash equivalents subject to contractual restrictions and not readily available are classified as restricted cash. We are required to post cash as collateral aspart of certain agreements that we enter into as part of our operations. Restricted cash is invested in accordance with the terms of the underlying agreementsand include amounts related to various deposits, escrows and other cash collateral. Restricted cash is included in Other current assets and Other assets in theconsolidated 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 evidenceavailable. 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 in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derivedvaluations whose significant inputs are observable; and Level 3 - Instruments whose significant inputs are unobservable. Financial instruments are transferredin and/or out of Level 1, 2 or 3 at the beginning of the accounting period in which there is a change in the valuation inputs.Marketable Securities We classify marketable securities as available-for-sale or trading. Various factors, including turnover of holdings and investmentguidelines, are considered in determining the classification of securities. Available-for-sale securities are recorded at fair value with unrealized gains andlosses recorded net of related income taxes in Accumulated other comprehensive loss until realized. Trading securities are recorded at fair value with changesin fair value recorded in Interest income and other non-operating income, net. We determine realized gains and losses for all securities using the specificidentification method.We measure the fair value of our marketable securities using a market approach where identical or comparable prices are available and an income approachin other cases. If quoted market prices are not available, fair values of securities are determined using prices from a pricing service, pricing models, quotedprices of securities with similar characteristics or discounted cash flow models. These prices represent non-binding quotes. Our pricing service utilizesindustry-standard pricing models that consider various inputs. We conduct an annual review of our pricing service and believe the prices received from ourpricing service are a reliable representation of exit prices.An evaluation is made quarterly to determine if unrealized losses related to non-trading investments in securities are other-than-temporary. Factorsconsidered include the length of time and extent to which the fair value has been below cost, the financial condition and near-term prospects of the issuerand the intent to sell or likelihood to be forced to sell the security before any anticipated recovery.GM Financial Receivables Finance receivables are carried at amortized cost, net of allowance for loan losses. The component of the allowance for retailfinance receivables that is collectively evaluated for impairment is based on a statistical calculation50Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)which is supplemented by management judgment. GM Financial uses a combination of forecasting models to determine the allowance for loan losses. Factorsthat are considered when estimating the allowance include historical delinquency migration to loss, probability of default and loss given default. The lossconfirmation period is a key assumption within the models and represents the average amount of time from when a loss event first occurs to when thereceivable is charged off. GM Financial also considers an evaluation of overall portfolio credit quality based on various indicators.Retail finance receivables that become classified as troubled debt restructurings (TDRs) are separately assessed for impairment. A specific allowance isestimated based on the present value of the expected future cash flows of the receivable discounted at the loan's original effective interest rate. Financecharge income from loans classified as TDRs is accounted for in the same manner as other accruing loans. Cash collections on these loans are allocatedaccording to the same payment hierarchy methodology applied to loans that are not classified as TDRs.Retail finance receivables are generally charged off in the month in which the account becomes 120 days contractually delinquent if GM Financial has notyet recorded a repossession charge-off. A charge-off generally represents the difference between the estimated net sales proceeds and the amount of thecontract, including accrued interest.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 ofbusiness less cost to sell, and considers general market and economic conditions, periodic reviews of current profitability of vehicles, product warranty costsand the effect of current and expected incentive offers at the balance sheet date. Net realizable value for off-lease and other vehicles is current auction salesproceeds less disposal and warranty costs. Productive material, work in process, supplies and service parts are reviewed to determine if inventory quantitiesare in excess of forecasted usage or if they have become obsolete.Equipment on Operating Leases Equipment on operating leases, net is reported at cost, less accumulated depreciation and impairment, net of originationfees or costs and lease incentives. Estimated income from operating lease assets, which includes lease origination fees, net of lease origination costs, isrecorded as operating lease revenue on a straight-line basis over the term of the lease agreement. Leased vehicles are depreciated on a straight-line basis to anestimated residual value over the term of the lease agreements.We have significant investments in vehicle operating lease portfolios, which consist of vehicle leases to retail customers with lease terms of two to fiveyears and vehicles leased to rental car companies with lease terms that average eight months. We are exposed to changes in the residual values of these assets.For impairment purposes the residual values represent estimates of the values of the vehicles leased at the end of the lease contracts and are determined basedon forecasted auction proceeds when there is a reliable basis to make such a determination. Realization of the residual values is dependent on the futureability to market the vehicles under prevailing market conditions. The adequacy of the estimate of the residual value is evaluated over the life of the leaseand adjustments may be made to the extent the expected value of the vehicle at lease termination changes. Adjustments may be in the form of revisions to thedepreciation rate or recognition of an impairment charge. Impairment is determined to exist if an impairment indicator exists and the expected future cashflows, which include estimated residual values, are lower than the carrying amount of the vehicles leased. If the carrying amount is considered impaired animpairment charge is recorded for the amount by which the carrying amount exceeds fair value. Fair value is determined primarily using the anticipated cashflows, including estimated residual values.In our automotive operations when a leased vehicle is returned the asset is reclassified from Equipment on operating leases, net to Inventories at the lowerof cost or estimated selling price, less cost to sell. Upon disposition, proceeds are recorded in Automotive net sales and revenue and costs are recorded inAutomotive cost of sales. In our automotive finance operations when a leased vehicle is returned or repossessed the asset is recorded in Other assets at thelower of cost or estimated selling price, less costs to sell. Upon disposition a gain or loss is recorded in GM Financial interest, operating and other expensesfor any difference between the net book value of the leased asset and the proceeds from the disposition of the asset.Depreciation expense and impairment charges related to Equipment on operating leases, net are recorded in Automotive cost of sales or GM Financialinterest, operating and other expenses.Valuation of Cost and Equity Method Investments When events and circumstances warrant, investments accounted for under the cost or equity method ofaccounting are evaluated for impairment. An impairment charge is recorded whenever a decline in value of an investment below its carrying amount isdetermined to be other-than-temporary. Impairment charges related to equity51Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)method investments are recorded in Equity income. Impairment charges related to cost method investments are 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 addfunctionality are capitalized. The gross amount of assets under capital leases is included in property, plant and equipment. Expenditures for repairs andmaintenance are charged to expense as incurred. We depreciate all depreciable property using the straight-line method. Leasehold improvements areamortized over the period of lease or the life of the asset, whichever is shorter. The amortization of the assets under capital leases is included in depreciationexpense. Upon retirement or disposition of property, plant and equipment, the cost and related accumulated depreciation are eliminated and any resultinggain or loss is recorded in earnings. Impairment charges related to property are recorded in Automotive cost of sales, Automotive selling, general andadministrative expense or GM Financial interest, operating and other expenses.Special Tools Special tools represent product-specific powertrain and non-powertrain related tools, dies, molds and other items used in the vehiclemanufacturing process. Expenditures for special tools are recorded at cost and are capitalized. We amortize special tools over their estimated useful livesusing the straight-line method or an accelerated amortization method based on their historical and estimated production volume. Impairment charges relatedto special tools are recorded in Automotive cost of sales.Goodwill Goodwill is tested for impairment annually on October 1 or when events occur or circumstances change that would trigger such a review. A two-step impairment test is used to identify potential goodwill impairment. Impairment exists when the carrying amount of goodwill exceeds its implied fairvalue. When performing our goodwill impairment testing, the fair values of our reporting units are determined based on valuation techniques using the bestavailable information, primarily discounted cash flow projections. Because the fair value of goodwill can be measured only as a residual amount and cannotbe determined directly we calculate the implied goodwill for those reporting units failing Step 1 in the same manner that goodwill is recognized in a businesscombination pursuant to Accounting Standards Codification (ASC) 805.Intangible Assets, net Intangible assets, excluding goodwill, primarily include brand names, technology and intellectual property, customer relationshipsand dealer networks. Intangible assets are amortized on a straight-line or an accelerated method of amortization over their estimated useful lives. Anaccelerated amortization method reflecting the pattern in which the asset will be consumed is utilized if that pattern can be reliably determined. We considerthe period of expected cash flows and underlying data used to measure the fair value of the intangible assets when selecting a useful life. Impairment chargesrelated to intangible assets are recorded in Automotive selling, general and administrative expense or Automotive cost of sales. Amortization of developedtechnology and intellectual property is recorded in Automotive cost of sales. Amortization of brand names, customer relationships and our dealer networks isrecorded in Automotive selling, general and administrative expense or GM Financial interest, operating and other expenses.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 are evaluatedfor impairment when events and circumstances warrant. If the carrying amount of a long-lived asset group is considered impaired, a loss is recorded based onthe amount by which the carrying amount exceeds fair value. Product-specific long-lived asset groups and non-product specific long-lived assets areseparately tested for impairment on an asset group basis. Fair value is determined using either the market or sales comparison approach, cost approach oranticipated cash flows discounted at a rate commensurate with the risk involved. Long-lived assets to be disposed of other than by sale are considered heldfor use until disposition.Pension and OPEB PlansAttribution, 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 whichmay be the duration of the applicable collective bargaining agreement specific to the plan, the expected future working lifetime or the life expectancy of theplan participants.The cost of medical, dental, legal service and life insurance benefits provided through postretirement benefit plans is recorded in the period employeesprovide service. The cost of postretirement plan amendments that provide for benefits already earned by plan participants is amortized over the expectedperiod of benefit which may be the average period to full eligibility or the average life expectancy of the plan participants.52Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)An expected return on plan asset methodology is utilized to calculate future pension expense for certain significant funded benefit plans. A market-relatedvalue 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 thatdifference 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 cashflow matching approach that uses projected cash flows matched to spot rates along a high quality corporate bond yield curve to determine the present valueof cash flows to calculate a single equivalent discount rate. Effective 2016 we applied the individual annual yield curve rates instead of the single equivalentdiscount rate to determine the service cost and interest cost for our pension and OPEB plans. This refinement more specifically links the cash flows related toservice cost and interest cost to bonds maturing in their year of payment.The benefit obligation for pension plans in Canada, the U.K. and Germany represents 91% of the non-U.S. pension benefit obligation at December 31,2016. The discount rates for plans in Canada, the U.K. and Germany are determined using a cash flow matching approach similar to the U.S. approach.Plan Asset Valuation Due to the lack of timely available market information for certain investments in the asset classes described below as well as theinherent uncertainty of valuation, reported fair values may differ from fair values that would have been used had timely available market information beenavailable.Common and Preferred Stock Common and preferred stock for which market prices are readily available at the measurement date are valued at the lastreported 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 equitysecurities for which the market is not considered to be active are valued via the use of observable inputs, which may include, among others, the use ofadjusted market prices last available, bids or last available sales prices and/or other observable inputs and are classified in Level 2. Common and preferredstock classified in Level 3 are privately issued securities or other issues that are valued via the use of valuation models using significant unobservable inputsthat generally consider, among others, 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 insuch securities. Debt securities priced via pricing services that utilize matrix pricing which considers readily observable inputs such as the yield or price ofbonds of comparable quality, coupon, maturity and type as well as dealer supplied prices, are classified in Level 2. Debt securities that are typically priced bydealers and pricing services via the use of proprietary pricing models which incorporate significant unobservable inputs are classified in Level 3. Theseinputs 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 estateinvestments 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 ofreadily available market prices.NAV's are provided by the respective investment sponsors or investment advisers and are subsequently reviewed and approved by management. In theevent management concludes a reported NAV does not reflect fair value or is not determined as of the financial reporting measurement date, we will considerwhether and when deemed necessary to make an adjustment at the balance sheet date. In determining whether an adjustment to the external valuation isrequired, we will review material factors that could affect the valuation, such as changes in the composition or performance of the underlying investments orcomparable investments, overall market conditions, expected sale prices for private investments which are probable of being sold in the short-term and othereconomic factors that may possibly have a favorable or unfavorable effect on the reported external valuation.Stock Incentive Plans Our stock incentive plans include RSUs, RSAs, Performance Share Units (PSUs) and stock options. We measure and recordcompensation expense based on the fair value of our common stock on the date of grant for RSUs, RSAs and PSUs and the grant date fair value of stockoptions determined utilizing a lattice model or the Black-Scholes-Merton formula. Compensation cost for awards that do not have an established accountinggrant date is based on the fair value of our common stock at the end of each reporting period. We record compensation cost for RSUs, RSAs and PSUs on astraight-line basis over the entire vesting period, or for retirement eligible employees over the requisite service period. We use the graded vesting method torecord compensation cost for stock options over the lesser of the vesting period or the time period an employee becomes eligible53Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)to retain the award at retirement. The liability for stock incentive plan awards settled in cash is remeasured to fair value at the end of each reporting period.Product Warranty and Recall Campaigns The estimated costs related to product warranties are accrued at the time products are sold and are charged toAutomotive cost of sales. These estimates are established using historical information on the nature, frequency and average cost of claims of each vehicle lineor each model year of the vehicle line and assumptions about future activity and events. Revisions are made when necessary and are based on changes inthese factors.The estimated costs related to recall campaigns are generally accrued at the time of vehicle sale in GMNA by applying a frequency times severity approachthat considers the number of historical recall campaigns, the number of vehicles per recall campaign, the estimated number of vehicles to be repaired and thecost per vehicle for each recall campaign. The estimated costs associated with recall campaigns in other geographical regions are accrued when probable andestimable using the estimated costs of repairs and the estimated number of vehicles to be repaired. Costs associated with recall campaigns are charged toAutomotive 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 betweenthe 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 inwhich the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recorded in the results of operations inthe period that includes the enactment date under the law.Deferred income tax assets are evaluated quarterly to determine if valuation allowances are required or should be adjusted. We establish valuationallowances for deferred tax assets based on a more likely than not standard. The ability to realize deferred tax assets depends on the ability to generatesufficient taxable income within the carryback or carryforward periods provided for in the tax law for each applicable tax jurisdiction. The assessmentregarding whether a valuation allowance is required or should be adjusted also considers all available positive and negative evidence factors. It is difficult toconclude a valuation allowance is not required when there is significant objective and verifiable negative evidence, such as cumulative 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.Income tax expense (benefit) for the year is allocated between continuing operations and other categories of income such as Other comprehensive income(loss). In periods in which there is a pre-tax loss from continuing operations and pre-tax income in another income category, the tax benefit allocated tocontinuing operations is determined by taking into account the pre-tax income of other categories.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 besustained based on the technical merits of the position, and for those tax positions that meet the more likely than not recognition, we recognize the largestamount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. We record interest and penaltieson uncertain tax positions in Income tax expense (benefit).Foreign Currency Transactions and Translation The assets and liabilities of foreign subsidiaries that use the local currency as their functional currency aretranslated to U.S. Dollars based on the current exchange rate prevailing at each balance sheet date and any resulting translation adjustments are included inAccumulated other comprehensive loss. The assets and liabilities of foreign subsidiaries whose local currency is not their functional currency are remeasuredfrom their local currency to their functional currency and then translated to U.S. Dollars. Revenues and expenses are translated into U.S. Dollars using theaverage exchange rates prevailing for each period presented.Gains and losses arising from foreign currency transactions and the effects of remeasurements discussed in the preceding paragraph are recorded inAutomotive cost of sales and GM Financial interest, operating and other expenses unless related to Automotive debt, which are recorded in Interest incomeand other non-operating income, net. Foreign currency transaction and remeasurement losses were $358 million, $829 million and $437 million in the yearsended December 31, 2016, 2015 and 2014.Derivative Financial Instruments Derivative financial instruments are recognized as either assets or liabilities at fair value. The accounting for changes inthe 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 ofhedging relationship identified. Derivative instruments are not used for trading or speculative purposes.54Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)Automotive We utilize options, swaps and forward contracts to manage foreign currency and commodity price risks. The change in fair value of option andforward contracts not designated as hedges is recorded in Interest income and other non-operating income, net. Cash flows for all derivative financialinstruments are classified in cash flows from operating activities. At December 31, 2016 and 2015 we had derivative instruments not designated as hedges inasset positions with notional amounts of $5.7 billion and $6.8 billion and in liability positions with notional amounts of $651 million and $264 million. Thefair value of these derivative instruments was insignificant at December 31, 2016 and 2015.Certain foreign currency and commodity forward contracts have been designated as cash flow hedges. The risk being hedged is the foreign currency andcommodity price risk related to forecasted transactions. If the contract has been designated as a cash flow hedge, the effective portion of changes in the fairvalue of the cash flow hedge is deferred in Accumulated other comprehensive loss and is recognized in Automotive cost of sales when the hedged item affectsearnings. Any ineffective portion is recorded in Automotive cost of sales in the period of remeasurement. At December 31, 2016 the notional amount of thesederivative instruments in asset positions was $909 million and was insignificant at December 31, 2015. The fair value of these derivative instruments wasinsignificant at December 31, 2016 and 2015.Automotive Financing - GM Financial GM Financial utilizes interest rate option and swap agreements to manage interest rate risk and foreign currencyswap agreements to manage foreign currency risk. The change in fair value of the option and swap agreements not designated as hedges is recorded in GMFinancial interest, operating and other expenses. Cash flows for all derivative financial instruments are classified in cash flows from operating activities. AtDecember 31, 2016 and 2015 GM Financial had derivative instruments not designated as hedges in asset positions with notional amounts of $20.7 billionand $11.9 billion and liability positions with notional amounts of $20.6 billion and $13.9 billion. The fair value of these derivatives was insignificant atDecember 31, 2016 and 2015.Certain interest rate swap agreements have been designated as fair value hedges of fixed-rate debt. At December 31, 2016 and 2015 the notional amounts ofthese instruments in liability positions were $7.7 billion and $1.0 billion. The fair value of these derivative instruments in liability positions was $276million at December 31, 2016 and was insignificant at December 31, 2015. The risk being hedged is the risk of changes in the fair value of the hedged debtattributable to changes in the benchmark interest rate. If the swap has been designated as a fair value hedge, the changes in the fair value of the hedged debtare recorded in Interest expense. The change in fair value of the related derivative (excluding accrued interest) is also recorded in Interest expense.Beginning in 2016 certain interest rate swap and foreign currency swap agreements have been designated as cash flow hedges. At December 31, 2016 thenotional amount of these designated instruments in asset positions was $3.5 billion and in liability positions was $2.1 billion. The fair value of thesederivative instruments was insignificant at December 31, 2016. The risk being hedged is the foreign currency and interest rate risk related to forecastedtransactions. If the contract has been designated as a cash flow hedge, the effective portion of changes in the fair value of the cash flow hedge is deferred inAccumulated other comprehensive loss and is recognized in GM Financial interest, operating and other expenses when the hedged item affects earnings. Anyineffective portion is recorded in GM Financial interest, operating and other expenses in the period of remeasurement.The gains or losses on all derivative instruments included in the consolidated income statements and Accumulated other comprehensive loss wereinsignificant in the years ended December 31, 2016, 2015 and 2014.Recently Adopted Accounting Standards Effective January 1, 2016 we retrospectively adopted Accounting Standards Update (ASU) 2015-17, "BalanceSheet Classification of Deferred Taxes", which requires all deferred tax assets and liabilities to be classified as non-current. As a result current Deferredincome taxes and Accrued liabilities decreased by $8.6 billion and $249 million and non-current Deferred income taxes increased by $8.4 billion atDecember 31, 2015 in our consolidated balance sheets.In November 2016 the Financial Accounting Standards Board (FASB) issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" (ASU2016-18), which clarifies the presentation of restricted cash and restricted cash equivalents in the statements of cash flows. Under ASU 2016-18 restrictedcash and restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amountsshown on the statements of cash flows. We adopted ASU 2016-18 during the three months ended December 31, 2016 on a retrospective basis. As a result Netcash provided by operating activities decreased by $287 million in the year ended December 31, 2015 and increased by an insignificant amount in the yearended December 31, 2014. Net cash used in investing activities decreased by $325 million and $339 million in the years ended December 31, 2015 and 2014and beginning-of-period cash, cash equivalents and restricted cash increased by $2.1 billion, $2.2 billion and $2.0 billion in 2016, 2015 and 2014.55Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)Accounting Standards Not Yet Adopted In May 2014 the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09), whichrequires us to recognize revenue when a customer obtains control rather than when we have transferred substantially all risks and rewards of a good or serviceand requires expanded disclosures. ASU 2014-09, as amended, is effective for us beginning January 1, 2018. ASU 2014-09 will affect the amount and timingof certain revenue related transactions primarily resulting from the earlier recognition of certain sales incentives and fixed fee license arrangements. Uponadoption of ASU 2014-09 sales incentives will be recorded at the time of sale rather than at the later of sale or announcement and fixed fee licensearrangements will be recognized when the customer is granted access to intellectual property instead of over the contract period. Certain transactions withdaily rental car companies may also qualify to be accounted for as a sale as opposed to the current accounting as an operating lease. We have not yetdetermined whether we will adopt the provisions of ASU 2014-09 on a retrospective basis or through a cumulative adjustment to equity. We do not expectthe adoption of ASU 2014-09 to be material to our consolidated financial statements. We continue to assess the overall impact the adoption of ASU 2014-09will have on our consolidated financial statements, and anticipate testing our new controls and processes designed to comply with ASU 2014-09 throughout2017 to permit adoption by January 1, 2018.In January 2016 the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (ASU 2016-01), whichrequires, among other items, equity investments that are not accounted for under the equity method of accounting to be measured at fair value with changesrecognized in net income and updates certain presentation and disclosure requirements. ASU 2016-01 is effective for us beginning January 1, 2018. AtDecember 31, 2016 the carrying value of equity investments that are not accounted for under the equity method of accounting totaled $526 million andunrealized gains or losses were insignificant. Currently we do not believe the adoption of ASU 2016-01 will have a material impact on our consolidatedfinancial statements, however changes in future market conditions and equity investment balances prior to the implementation date will affect the impact theadoption may have on our consolidated financial statements.In February 2016 the FASB issued ASU 2016-02, "Leases" (ASU 2016-02), which requires us as the lessee to recognize most leases on the balance sheetthereby resulting in the recognition of lease assets and liabilities for those leases currently classified as operating leases. The accounting for leases where weare the lessor remains largely unchanged. ASU 2016-02 is effective for us beginning January 1, 2019 with early adoption permitted. While we are currentlyassessing the impact ASU 2016-02 will have on our consolidated financial statements, we expect the primary impact to our consolidated financial positionupon adoption will be the recognition, on a discounted basis, of our minimum commitments under noncancelable operating leases on our consolidatedbalance sheets resulting in the recording of right of use assets and lease obligations. Our current minimum commitments under noncancelable operatingleases are disclosed in Note 15.In June 2016 the FASB issued ASU 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments"(ASU 2016-13), that requires entities to use a new impairment model based on expected losses. Under this new model an entity would recognize animpairment allowance equal to its current estimate of credit losses on financial assets measured at amortized cost. ASU 2016-13 is effective for us beginningJanuary 1, 2020 with early adoption permitted January 1, 2019. Credit losses under the new model will consider relevant information about past events,current conditions and reasonable and supportable forecasts, resulting in recognition of lifetime expected credit losses by GM Financial upon loanorigination as compared to our current accounting that recognizes credit losses as incurred. We are currently evaluating new processes to calculate creditlosses in accordance with ASU 2016-13 that, once completed, will determine the impact on our consolidated financial statements which at the date ofadoption will increase the allowance for credit losses with a resulting negative adjustment to retained earnings.Note 3. Marketable SecuritiesThe following table summarizes the fair value of cash equivalents and marketable securities which approximates cost:56Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued) Fair ValueLevel December 31, 2016 December 31, 2015Cash and cash equivalents Cash, cash equivalents and time deposits $6,077 $7,730Available-for-sale securities U.S. government and agencies2 1,158 —Corporate debt2 2,524 4,071Money market funds1 1,802 2,275Sovereign debt2 1,399 1,162Total available-for-sale securities – cash equivalents 6,883 7,508Total cash and cash equivalents $12,960 $15,238Marketable securities Available-for-sale securities U.S. government and agencies2 $5,886 $5,329Corporate debt2 3,611 2,196Mortgage and asset-backed2 197 —Sovereign debt2 2,147 57Total available-for-sale securities – marketable securities 11,841 7,582Trading securities – sovereign debt2 — 581Total marketable securities $11,841 $8,163Restricted cash Cash, cash equivalents and time deposits $531 $833Available-for-sale securities, primarily money market funds1 1,687 1,340Total restricted cash $2,218 $2,173 Available-for-sale securities included above with contractual maturities (excluding mortgageand asset-backed securities) Due in one year or less $10,957 Due between one and five years 5,786 Total available-for-sale securities with contractual maturities $16,743 Sales proceeds from investments classified as available-for-sale and sold prior to maturity were $8.5 billion, $7.9 billion and $5.9 billion in the years endedDecember 31, 2016, 2015 and 2014. Net unrealized gains and losses on trading securities were insignificant in the years ended December 31, 2016, 2015 and2014.The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to thetotal of the same amounts shown in the consolidated statements of cash flows: December 31, 2016 December 31, 2015Cash and cash equivalents$12,960 $15,238Restricted cash included in Other current assets1,613 1,529Restricted cash included in Other assets587 565Total cash, cash equivalents and restricted cash as shown in the consolidated statements of cash flows$15,160 $17,33257Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)Note 4. GM Financial Receivables December 31, 2016 December 31, 2015 Retail Commercial Total Retail Commercial TotalFinance receivables, collectively evaluated for impairment, netof fees$30,989 $10,652 $41,641 $27,512 $8,127 $35,639Finance receivables, individually evaluated for impairment, netof fees1,921 70 1,991 1,612 82 1,694GM Financial receivables32,910 10,722 43,632 29,124 8,209 37,333Less: allowance for loan losses(793) (50) (843) (735) (47) (782)GM Financial receivables, net$32,117 $10,672 $42,789 $28,389 $8,162 $36,551 Fair value of GM Financial receivables $42,739 $36,707GM Financial estimates the fair value of retail finance receivables using observable and unobservable Level 3 inputs within a cash flow model. The inputsreflect assumptions regarding expected prepayments, deferrals, delinquencies, recoveries and charge-offs of the loans within the portfolio. The cash flowmodel produces an estimated amortization schedule of the finance receivables. The projected cash flows are then discounted using current risk-adjusted ratesto derive the fair value of the portfolio. Macroeconomic factors could affect the credit performance of the portfolio and therefore could potentially affect theassumptions used in GM Financial's cash flow model. A substantial majority of GM Financial's commercial finance receivables have variable interest ratesand maturities of one year or less. Therefore, the carrying amount, a level 2 input, is considered to be a reasonable estimate of fair value. Years Ended December 31, 2016 2015 2014Allowance for loan losses at beginning of period$782 $695 $548Provision for loan losses669 624 604Charge-offs(1,173) (999) (914)Recoveries561 487 470Effect of foreign currency4 (25) (13)Allowance for loan losses at end of period$843 $782 $695The allowance for loan losses on retail and commercial finance receivables included a collective allowance of $560 million, $553 million and $518million and a specific allowance of $283 million, $229 million and $177 million at December 31, 2016, 2015 and 2014.Retail Finance Receivables GM Financial uses proprietary scoring systems in its underwriting process that measure the credit quality of retail financereceivables using several factors, such as credit bureau information, consumer credit risk scores (e.g. FICO scores or its equivalent) and contractcharacteristics. In addition to GM Financial's proprietary scoring systems GM Financial considers other individual consumer factors such as employmenthistory, financial stability and capacity to pay. Subsequent to origination GM Financial reviews the credit quality of retail finance receivables based oncustomer payment activity. In North America, while we historically focused on consumers with lower than prime credit scores, we have expanded our primelending programs. At December 31, 2016 and 2015, 48% and 60% of the retail finance receivables in North America were from consumers with sub-primecredit scores, which are defined as FICO scores or its equivalent of less than 620 at the time of loan origination. At the time of loan origination, substantiallyall of GM Financial's international consumers have the equivalent of prime credit scores.GM Financial purchases retail finance contracts from automobile dealers without recourse, and accordingly, the dealer has no liability to GM Financial ifthe consumer defaults on the contract. Finance receivables are collateralized by vehicle titles and GM Financial has the right to repossess the vehicle in theevent the consumer defaults on the payment terms of the contract.An account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date such payment was contractuallydue. At December 31, 2016 and 2015 the accrual of finance charge income had been suspended on delinquent retail finance receivables with contractualamounts due of $807 million and $778 million. The following table58Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)summarizes the contractual amount of delinquent retail finance receivables, which is not significantly different than the recorded investment of the retailfinance receivables: December 31, 2016 December 31, 2015 Amount Percent ofContractualAmount Due Amount Percent ofContractualAmount Due31-to-60 days delinquent$1,235 3.7% $1,237 4.2%Greater-than-60 days delinquent542 1.7% 481 1.6%Total finance receivables more than 30 days delinquent1,777 5.4% 1,718 5.8%In repossession51 0.1% 46 0.2%Total finance receivables more than 30 days delinquent or in repossession$1,828 5.5% $1,764 6.0%At December 31, 2016 and 2015 retail finance receivables classified as TDRs and individually evaluated for impairment were $1.9 billion and $1.6 billionand the allowance for loan losses included $276 million and $220 million of specific allowances on these receivables. Commercial Finance Receivables GM Financial's commercial finance receivables consist of dealer financings, primarily for inventory purchases. Aproprietary model is used to assign a risk rating to each dealer. A credit review of each dealer is performed at least annually, and if necessary, the dealer's riskrating is adjusted on the basis of the review. Dealers in Group VI are subject to additional restrictions on funding, up to suspension of lines of credit andliquidation of assets. At December 31, 2016 and 2015 the commercial finance receivables on non-accrual status were insignificant. The following tablesummarizes the credit risk profile by dealer grouping of the commercial finance receivables: December 31, 2016 December 31, 2015Group I– Dealers with superior financial metrics$1,576 $1,298Group II– Dealers with strong financial metrics3,299 2,573Group III– Dealers with fair financial metrics3,842 2,597Group IV– Dealers with weak financial metrics1,201 1,058Group V– Dealers warranting special mention due to potential weaknesses636 501Group VI– Dealers with loans classified as substandard, doubtful or impaired168 182 $10,722 $8,209Note 5. Inventories December 31, 2016 GMNA GME GMIO GMSA TotalTotal productive material, supplies and work in process$3,226 $684 $974 $759 $5,643Finished product, including service parts4,108 2,229 1,107 701 8,145Total inventories$7,334 $2,913 $2,081 $1,460 $13,788 December 31, 2015 GMNA GME GMIO GMSA TotalTotal productive material, supplies and work in process$2,705 $713 $1,113 $616 $5,147Finished product, including service parts4,884 2,166 954 613 8,617Total inventories$7,589 $2,879 $2,067 $1,229 $13,764Note 6. Equipment on Operating LeasesEquipment on operating leases in our automotive operations consists of vehicle sales to daily rental car companies with a guaranteed repurchaseobligation.59Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued) December 31, 2016 December 31, 2015Equipment on operating leases$2,076 $3,037Less: accumulated depreciation(180) (254)Equipment on operating leases, net$1,896 $2,783 Years Ended December 31, 2016 2015 2014Depreciation expense$167 $341 $507Impairment charges$188 $215 $155 GM Financial originates leases to retail customers that are recorded as operating leases. December 31, 2016 December 31, 2015GM Financial equipment on operating leases$40,875 $23,005Less: accumulated depreciation(6,349) (2,833)GM Financial equipment on operating leases, net$34,526 $20,172Depreciation expense related to GM Financial equipment on operating leases, net was $4.6 billion, $2.3 billion and $868 million in the years endedDecember 31, 2016, 2015 and 2014.The following table summarizes minimum rental payments due to GM Financial on leases to retail customers:20172018201920202021Minimum rental receipts under operating leases$5,649$4,176$1,869$180$4Note 7. Equity in Net Assets of Nonconsolidated AffiliatesNonconsolidated affiliates are entities in which an equity ownership interest is maintained and for which the equity method of accounting is used due toour ability to exert significant influence over decisions relating to their operating and financial affairs. Revenue and expenses of our joint ventures are notconsolidated into our financial statements; rather, our proportionate share of the earnings of each joint venture is reflected as Equity income. Years Ended December 31, 2016 2015 2014Automotive China JVs equity income$1,973 $2,057 $2,066Other joint ventures equity income309 137 28Total Equity income$2,282 $2,194 $2,094Investments in Nonconsolidated Affiliates December 31, 2016 December 31, 2015Automotive China JVs carrying amount$7,859 $7,997Other investments carrying amount1,137 1,204Total equity in net assets of nonconsolidated affiliates$8,996 $9,201At December 31, 2016 and 2015 the carrying amount of our investments in certain joint ventures exceeded our share of the underlying net assets by $4.3billion primarily related to goodwill from the application of fresh-start reporting and purchase of additional interests in nonconsolidated affiliates.The following table summarizes our direct ownership interests in China JVs at December 31, 2016 and 2015:60Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued) Direct OwnershipAutomotive China JVs SAIC General Motors Corp., Ltd. (SGM)50%SAIC GM (Shenyang) Norsom Motors Co., Ltd. (SGM Norsom)25%SAIC GM Dong Yue Motors Co., Ltd. (SGM DY)25%SAIC GM Dong Yue Powertrain Co., Ltd. (SGM DYPT)25%SAIC GM Wuling Automobile Co., Ltd.44%FAW-GM Light Duty Commercial Vehicle Co., Ltd.50%Pan Asia Technical Automotive Center Co., Ltd.50%Shanghai OnStar Telematics Co., Ltd. (Shanghai OnStar)40%Shanghai Chengxin Used Car Operation and Management Co., Ltd. (Shanghai Chengxin Used Car)33%SAIC General Motors Sales Co., Ltd.49%Other joint ventures SAIC-GMAC35%SGM is a joint venture we established with Shanghai Automotive Industry Corporation (SAIC) (50%). SGM has interests in three other joint ventures inChina: SGM Norsom, SGM DY and SGM DYPT. These three joint ventures are jointly held by SGM (50%), SAIC (25%) and ourselves. These four jointventures are engaged in the production, import and sale of a range of products under the Buick, Chevrolet and Cadillac brands. SGM also has interests inShanghai OnStar (20%), Shanghai Chengxin Used Car (33%) and SAIC-GMAC (20%). Shanghai Automotive Group Finance Company Ltd., a subsidiary ofSAIC, owns 45% of SAIC-GMAC.Summarized Financial Data of Nonconsolidated Affiliates December 31, 2016 December 31, 2015 Automotive ChinaJVs Others Total Automotive ChinaJVs Others TotalSummarized Balance Sheet Data Current assets$17,325 $8,383 $25,708 $17,270 $9,358 $26,628Non-current assets12,712 5,991 18,703 10,801 4,266 15,067Total assets$30,037 $14,374 $44,411 $28,071 $13,624 $41,695 Current liabilities$21,428 $7,277 $28,705 $19,141 $8,477 $27,618Non-current liabilities1,393 3,898 5,291 1,132 1,933 3,065Total liabilities$22,821 $11,175 $33,996 $20,273 $10,410 $30,683 Noncontrolling interests$856 $1 $857 $907 $6 $913 Years Ended December 31, 2016 2015 2014Summarized Operating Data Automotive China JVs' net sales$47,150 $44,959 $43,853Others' net sales2,412 3,571 3,171Total net sales$49,562 $48,530 $47,024 Automotive China JVs' net income$4,117 $4,290 $4,312Others' net income378 435 91Total net income$4,495 $4,725 $4,403Transactions with Nonconsolidated Affiliates Our nonconsolidated affiliates are involved in various aspects of the development, production andmarketing of cars, trucks, crossovers and automobile parts. We enter into transactions with certain nonconsolidated61Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)affiliates to purchase and sell component parts and vehicles. The following tables summarize transactions with and balances related to our nonconsolidatedaffiliates: Years Ended December 31, 2016 2015 2014Automotive sales and revenue$913 $1,764 $2,762Automotive purchases, net$806 $93 $311Dividends received$2,120 $2,047 $1,793Operating cash flows$2,532 $3,782 $4,321 December 31, 2016 December 31, 2015Accounts and notes receivable, net$818 $721Accounts payable$554 $179Undistributed earnings$2,172 $2,158Note 8. Property Estimated Useful Lives inYears December 31, 2016 December 31, 2015Land $1,645 $1,636Buildings and improvements5-40 6,655 5,562Machinery and equipment3-27 22,855 19,338Construction in progress 5,347 4,633Real estate, plants and equipment 36,502 31,169Less: accumulated depreciation (11,614) (9,516)Real estate, plants and equipment, net 24,888 21,653Special tools, net1-9 10,932 9,576Total property, net $35,820 $31,229The amount of capitalized software included in Property, net was $1.1 billion and $907 million at December 31, 2016 and 2015. The amount of interestcapitalized and excluded from Automotive interest expense related to Property, net was insignificant in the years ended December 31, 2016, 2015 and 2014. Years Ended December 31, 2016 2015 2014Depreciation and amortization expense$5,015 $4,251 $4,187Impairment charges$68 $628 $709Capitalized software amortization expense(a)$466 $378 $295__________(a)Included in depreciation and amortization expense. Note 9. Acquisition of BusinessOn May 12, 2016 we acquired all of the outstanding capital stock of Cruise, an autonomous vehicle technology company, to further accelerate ourdevelopment of autonomous vehicles. The deal consideration at closing was $581 million, of which $291 million was paid in cash and approximately $290million was paid through the issuance of new common stock. The fair value of the common stock issued was determined based on the closing price of ourcommon stock on May 12, 2016. In conjunction with the acquisition, we entered into other agreements that will result in future costs contingent upon thecontinued employment of key individuals and additional performance-based awards contingent upon the achievement of specific technology andcommercialization milestones.62Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)Of the total consideration, $130 million was allocated to intangible assets, primarily in-process research and development with an indefinite life until fullydeveloped and commercialized, $39 million was allocated to deferred tax liabilities, net of other assets, and $490 million was allocated to non-tax-deductiblegoodwill in Corporate primarily related to the synergies expected to arise as a result of the acquisition.The results of operations associated with this acquisition were not significant to our consolidated financial statements. Accordingly, pro forma financialinformation is not presented. We have included the financial results of Cruise in our consolidated financial statements from the date of acquisition.Note 10. Goodwill and Intangible AssetsAt December 31, 2016 our total goodwill balance of $1.9 billion consisted of $1.4 billion recorded in GM Financial and $490 million included inCorporate. At December 31, 2015 our goodwill balance of $1.4 billion was recorded in GM Financial. December 31, 2016 December 31, 2015 GrossCarryingAmount AccumulatedAmortization NetCarryingAmount GrossCarryingAmount AccumulatedAmortization NetCarryingAmountTechnology and intellectual property$8,399 $7,940 $459 $8,263 $7,838 $425Brands4,421 933 3,488 4,427 808 3,619Dealer network, customer relationships and other1,356 912 444 1,346 814 532Total intangible assets$14,176 $9,785 $4,391 $14,036 $9,460 $4,576Our amortization expense related to Intangible assets was $328 million, $327 million, and $676 million in the years ended December 31, 2016, 2015 and2014.Amortization expense related to Intangible assets is estimated to be approximately $200 million in each of the next five years.Note 11. Variable Interest EntitiesGM Financial uses special purpose entities (SPEs) that are considered VIEs to issue variable funding notes to third party bank-sponsored warehousefacilities or asset-backed securities to investors in securitization transactions. The debt issued by these VIEs is backed by finance receivables and leasingrelated assets transferred by GM Financial to the VIEs (Securitized Assets). GM Financial determined that it is the primary beneficiary of the SPEs because theservicing responsibilities for the Securitized Assets give GM Financial the power to direct the activities that most significantly impact the performance of theVIEs and the variable interests in the VIEs give GM Financial the obligation to absorb losses and the right to receive residual returns that could potentiallybe significant. The assets serve as the sole source of repayment for the debt issued by these entities. Investors in the notes issued by the VIEs do not haverecourse to GM Financial or its other assets, with the exception of customary representation and warranty repurchase provisions and indemnities that GMFinancial provides as the servicer. GM Financial is not required and does not currently intend to provide additional financial support to these SPEs. Whilethese subsidiaries are included in GM Financial's consolidated financial statements, they are separate legal entities and their assets are legally owned by themand are not available to GM Financial's creditors. The following table summarizes the assets and liabilities related to GM Financial's consolidated VIEs: December 31, 2016 December 31, 2015Restricted cash – current$1,532 $1,345Restricted cash – non-current$535 $531GM Financial receivables, net of fees – current$15,220 $12,224GM Financial receivables, net of fees – non-current$14,151 $12,597GM Financial equipment on operating leases, net$19,341 $11,684GM Financial short-term debt and current portion of long-term debt$20,005 $13,545GM Financial long-term debt$18,239 $15,841GM Financial recognizes finance charge, leased vehicle and fee income on the Securitized Assets and interest expense on the secured debt issued in asecuritization transaction and records a provision for loan losses to recognize probable loan losses inherent in the finance receivables.63Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)Note 12. Accrued and Other Liabilities December 31, 2016 December 31, 2015Accrued liabilities Dealer and customer allowances, claims and discounts$9,934 $8,076Deposits primarily from rental car companies3,010 5,051Deferred revenue2,755 2,227Product warranty and related liabilities3,517 3,487Payrolls and employee benefits excluding postemployment benefits3,067 2,378Other6,909 6,374Total accrued liabilities$29,192 $27,593Other liabilities Deferred revenue$2,362 $2,007Product warranty and related liabilities6,184 5,792Employee benefits excluding postemployment benefits926 896Postemployment benefits including facility idling reserves798 833Other2,810 3,125Total other liabilities$13,080 $12,653 Years Ended December 31, 2016 2015 2014Product Warranty and Related Liabilities Warranty balance at beginning of period$9,279 $9,646 $7,601Warranties issued and assumed in period – recall campaigns and courtesy transportation982 986 2,910Warranties issued and assumed in period – product warranty2,552 2,325 2,540Payments(3,710) (3,987) (4,326)Adjustments to pre-existing warranties625 588 1,187Effect of foreign currency and other(27) (279) (266)Warranty balance at end of period$9,701 $9,279 $9,646During the three months ended September 30, 2014 we began accruing the costs for recall campaigns at the time of vehicle sale in GMNA, which resultedin a charge due to a change in estimate for previously sold vehicles of $874 million recorded in the three months ended June 30, 2014. We had historicallyaccrued estimated costs related to recall campaigns in GMNA when probable and reasonably estimable, which typically occurred once it was determined aspecific recall campaign was needed and announced. We estimate our reasonably possible loss in excess of amounts accrued for recall campaigns to be aninsignificant amount at December 31, 2016. Note 13. Automotive and GM Financial Debt64Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued) December 31, 2016 December 31, 2015Secured debt$136 $220Unsecured debt9,795 7,619Capital leases821 926Total automotive debt(a)$10,752 $8,765 Fair value utilizing Level 1 inputs$9,515 $6,972Fair value utilizing Level 2 inputs2,097 2,116Fair value of automotive debt$11,612 $9,088 Available under credit facility agreements$14,035 $12,168Interest rate range on outstanding debt(b)0.0-18.0% 0.0-18.0%Weighted-average interest rate on outstanding short-term debt(b)10.5% 9.6%Weighted-average interest rate on outstanding long-term debt(b)5.2% 4.7%__________(a)Includes net discount and debt issuance costs of $499 million and $549 million at December 31, 2016 and 2015.(b)Includes coupon rates on debt denominated in various foreign currencies and interest free loans.The fair value of automotive debt measured utilizing Level 1 inputs was based on quoted prices in active markets for identical instruments that a marketparticipant can access at the measurement date. The fair value of automotive debt measured utilizing Level 2 inputs was based on a discounted cash flowmodel using observable inputs. This model utilizes observable inputs such as contractual repayment terms and benchmark yield curves, plus a spread basedon our senior unsecured notes that is intended to represent our nonperformance risk. We obtain the benchmark yield curves and yields on unsecured notesfrom independent sources that are widely used in the financial industry. At December 31, 2016 and December 31, 2015 the fair value of automotive debtexceeded its carrying amount due primarily to a decrease in bond yields compared to yields at the time of issuance.In February 2016 we issued $2.0 billion in aggregate principal amount of senior unsecured notes comprising $1.25 billion of 6.60% notes due in 2036 and$750 million of 6.75% notes due in 2046. These notes contain terms and covenants customary of these types of securities including limitations on theamount of certain secured debt we may incur. The net proceeds from the issuance of these senior unsecured notes were used to fund discretionarycontributions to our U.S. hourly pension plan as described in Note 14.In May 2016 we amended and restated our two primary revolving credit facilities, increasing our aggregate borrowing capacity from $12.5 billion to $14.5billion. These facilities consist of a three-year, $4.0 billion facility and a five-year, $10.5 billion facility. Both facilities are available to us as well as certainwholly-owned subsidiaries, including GM Financial. The three-year, $4.0 billion facility allows for borrowings in U.S. Dollars and other currencies andincludes a GM Financial borrowing sub-limit of $1.0 billion and a letter of credit sub-facility of $1.0 billion. The five-year, $10.5 billion facility allows forborrowings in U.S. Dollars and other currencies and includes a GM Financial borrowing sub-limit of $3.0 billion and a letter of credit sub-limit of $500million.The revolving credit facilities require us to maintain at least $4.0 billion in global liquidity and at least $2.0 billion in U.S. liquidity. If we fail to maintainan investment grade corporate rating from at least two of the following credit rating agencies: Fitch, Moody's and S&P, certain subsidiaries of ours will berequired to provide guarantees under the terms of the revolving credit facilities. Interest rates on obligations under the revolving credit facilities are based onprevailing annual interest rates for Eurodollar loans or an alternative base rate, plus an applicable margin.In the years ended December 2015 and 2014 we prepaid and retired debt obligations with a total carrying amount of $538 million and $325 million whichprimarily represented unsecured debt in Brazil and recorded a net gain on extinguishment of debt of $449 million and $202 million.65Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued) December 31, 2016 December 31, 2015 CarryingAmount Fair Value CarryingAmount Fair ValueSecured debt $39,270 $39,357 $30,689 $30,671Unsecured debt 34,606 35,220 23,657 23,726Total GM Financial debt $73,876 $74,577 $54,346 $54,397 Fair value utilizing Level 2 inputs $69,990 $48,716Fair value utilizing Level 3 inputs $4,587 $5,681The fair value of GM Financial debt measured utilizing Level 2 inputs was based on quoted market prices for identical instruments and if unavailable,quoted market prices of similar instruments. For debt that has terms of one year or less or has been priced within the last six months, the carrying amount orpar value is considered to be a reasonable estimate of fair value. The fair value of GM Financial debt measured utilizing Level 3 inputs was based on thediscounted future net cash flows expected to be settled using current risk-adjusted rates.Secured debt consists of revolving credit facilities and securitization notes payable. Most of the secured debt was issued by VIEs and is repayable onlyfrom proceeds related to the underlying pledged Securitized Assets. Refer to Note 11 for additional information on GM Financial's involvement with VIEs.The weighted-average interest rate on secured debt was 2.09% at December 31, 2016. The revolving credit facilities have maturity dates over periods rangingup to six years. At the end of the revolving period, if not renewed, the debt will amortize over a defined period. GM Financial is required to hold certain fundsin restricted cash accounts to provide additional collateral for borrowings under certain secured credit facilities. Securitization notes payable at December 31,2016 are due beginning in 2018 through 2024. In the year ended December 31, 2016 GM Financial issued securitization notes payable of $16.9 billion andentered into new or renewed credit facilities with a total net additional borrowing capacity of $4.0 billion, which had substantially the same terms as existingdebt.Unsecured debt consists of senior notes, credit facilities, retail customer deposits and other unsecured debt. Senior notes outstanding at December 31, 2016are due beginning in 2017 through 2026 and have a weighted-average interest rate of 3.33%. In March 2016 GM Financial issued $2.75 billion in aggregateprincipal amount of senior notes comprising $1.5 billion of 4.20% notes due in March 2021 and $1.25 billion of 5.25% notes due in March 2026. In May2016 GM Financial issued $3.0 billion in aggregate principal amount of senior notes comprising $1.4 billion of 2.40% notes due in May 2019, $1.2 billionof 3.70% notes due in May 2023 and $400 million of floating rate notes due in May 2019. Also in May 2016 GM Financial issued Euro 500 million of1.168% term notes due in May 2020. In July 2016 GM Financial issued $2.0 billion of 3.20% senior notes due in July 2021. In September 2016 GMFinancial issued Euro 750 million of 0.955% term notes due in September 2023. In October 2016 GM Financial issued $1.75 billion in aggregate principalamount of senior notes comprising $750 million of 2.35% notes due in October 2019, $750 million of 4.00% notes due in October 2026 and $250 million offloating rate notes due in October 2019. In November 2016 GM Financial issued Euro 100 million of floating rate notes due in December 2017. In January2017 GM Financial issued $2.5 billion in aggregate principal amount of senior notes comprising $1.25 billion of 3.45% notes due in January 2022, $750million of 4.35% due in January 2027 and $500 million of floating rate notes due in January 2022. Each of these notes contain terms and covenantsincluding limitations on GM Financial's ability to incur certain liens.GM Financial accepts deposits from retail banking customers in Germany. At December 31, 2016 and December 31, 2015 the outstanding balance of thesedeposits was $1.9 billion and $1.3 billion, of which 42% and 44% were overnight deposits, and had weighted-average interest rates of 0.91% and 1.25%.The terms of advances on revolving credit facilities and other unsecured debt have original maturities of up to five years. The weighted-average interestrate on credit facilities and other unsecured debt was 7.50% at December 31, 2016. Years Ended December 31, 2016 2015 2014Automotive interest expense$572 $443 $403Automotive Financing - GM Financial interest expense2,108 1,616 1,426Total interest expense$2,680 $2,059 $1,82966Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)The following table summarizes contractual maturities including capital leases at December 31, 2016: Automotive AutomotiveFinancing(a) Total2017$1,175 $28,596 $29,77120181,655 15,740 17,3952019126 11,231 11,357202071 5,914 5,985202156 5,098 5,154Thereafter8,168 7,791 15,959 $11,251 $74,370 $85,621________(a)Secured debt, credit facilities and other unsecured debt are based on expected payoff date. Senior notes principal amounts are based on maturity.At December 31, 2016 future interest payments on automotive capital lease obligations were $371 million. GM Financial had no capital lease obligationsat December 31, 2016.Compliance with Debt Covenants Several of our loan facilities, including our revolving credit facilities, require compliance with certain financial andoperational covenants as well as regular reporting to lenders, including providing certain subsidiary financial statements. Some of GM Financial’s securedand unsecured debt agreements also contain various covenants, including maintaining portfolio performance ratios as well as limits on deferment levels.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 ofdefault may allow lenders to declare amounts outstanding under these agreements immediately due and payable, to enforce their interests against collateralpledged under these agreements or restrict our ability or GM Financial's ability to obtain additional borrowings. No technical defaults or covenant violationsexisted at December 31, 2016.Note 14. Pensions and Other Postretirement BenefitsEmployee Pension and Other Postretirement Benefit PlansDefined Benefit Pension Plans Defined benefit pension plans covering eligible U.S. hourly employees (hired prior to October 2007) and Canadian hourlyemployees (hired prior to October 2016) generally provide benefits of negotiated, stated amounts for each year of service and supplemental benefits foremployees 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 serviceand compensation history. Accrual of defined pension benefits ceased in 2012 for U.S. and Canadian salaried employees. There is also an unfundednonqualified pension plan covering primarily U.S. executives for service prior to January 1, 2007 and it is based on an “excess plan” for service after thatdate.The funding policy for qualified defined benefit pension plans is to contribute annually not less than the minimum required by applicable laws andregulations or to directly pay benefit payments where appropriate. In the year ended December 31, 2016 all legal funding requirements were met;additionally we made discretionary contributions to our U.S. hourly pension plan of $2.0 billion. These discretionary contributions were funded with the netproceeds from the issuance of the automotive senior unsecured notes described in Note 13. The following table summarizes contributions made to the definedbenefit pension plans: Years Ended December 31, 2016 2015 2014U.S. hourly and salaried$2,054 $95 $143Non-U.S.1,033 1,120 770Total$3,087 $1,215 $913We expect to contribute $73 million to our U.S. non-qualified plans and $970 million to our non-U.S. pension plans in 2017.67Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)Based on our current assumptions, over the next five years we expect no significant mandatory contributions to our U.S. qualified pension plans andmandatory contributions totaling $1.8 billion to our Canada and U.K. pension plans.Other Postretirement Benefit Plans Certain hourly and salaried defined benefit plans provide postretirement medical, dental, legal service and lifeinsurance to eligible U.S. and Canadian retirees and their eligible dependents. Certain other non-U.S. subsidiaries have postretirement benefit plans, althoughmost non-U.S. employees are covered by government sponsored or administered programs. We made contributions to the U.S. OPEB plans of $335 million,$340 million and $354 million in the years ended December 31, 2016, 2015 and 2014. Plan participants' contributions were insignificant in the years endedDecember 31, 2016, 2015 and 2014.Defined Contribution Plans We have defined contribution plans for eligible U.S. salaried and hourly employees that provide discretionary matchingcontributions. Contributions are also made to certain non-U.S. defined contribution plans. We made contributions to our defined contribution plans of $594million, $535 million and $513 million in the years ended December 31, 2016, 2015 and 2014.Significant Plan Amendments, Benefit Modifications and Related EventsOther Remeasurements We incorporated the mortality improvement tables issued by the Society of Actuaries (SOA) in the three months ended December31, 2016 that lowered life expectancies and thereby indicated the amount of estimated aggregate benefit payments to our U.S. pension plans' participants wasdecreasing. This change in assumption decreased the December 31, 2016 U.S. pension and OPEB plans’ obligations by $888 million. In the three monthsended December 31, 2014 the SOA issued new mortality and mortality improvement tables that raised life expectancies and thereby indicated the amount ofestimated aggregate benefit payments to our U.S. pension plans' participants was increasing. We incorporated these SOA mortality and mortalityimprovement tables into our December 31, 2014 measurement of our U.S. pension and OPEB plans' benefit obligations. The change in these assumptionsincreased the December 31, 2014 U.S. pension and OPEB plans' obligations by $2.2 billion.Pension and OPEB Obligations and Plan Assets68Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued) Year Ended December 31, 2016 Year Ended December 31, 2015 Pension Benefits GlobalOPEB Plans Pension Benefits GlobalOPEB Plans U.S. Non-U.S. U.S. Non-U.S. Change in benefit obligations Beginning benefit obligation$71,486 $23,763 $6,066 $76,724 $27,897 $6,625Service cost220 371 18 272 405 24Interest cost2,212 578 201 2,754 763 238Actuarial (gains) losses416 1,508 230 (2,623) (256) (209)Benefits paid(5,507) (1,474) (400) (5,641) (1,332) (407)Foreign currency translation adjustments— (638) 45 — (3,332) (225)Curtailments, settlements and other— (58) 20 — (382) 20Ending benefit obligation68,827 24,050 6,180 71,486 23,763 6,066Change in plan assets Beginning fair value of plan assets61,072 12,990 — 65,823 14,669 —Actual return on plan assets4,004 762 — 795 997 —Employer contributions2,054 1,033 378 95 1,120 385Benefits paid(5,507) (1,474) (400) (5,641) (1,332) (407)Foreign currency translation adjustments— (232) — — (2,017) —Settlements and other(1) (81) 22 — (447) 22Ending fair value of plan assets61,622 12,998 — 61,072 12,990 —Ending funded status$(7,205) $(11,052) $(6,180) $(10,414) $(10,773) $(6,066)Amounts recorded in the consolidated balance sheets Non-current assets$— $91 $— $— $125 $—Current liabilities(73) (324) (377) (67) (334) (381)Non-current liabilities(7,132) (10,819) (5,803) (10,347) (10,564) (5,685)Net amount recorded$(7,205) $(11,052) $(6,180) $(10,414) $(10,773) $(6,066)Amounts recorded in Accumulated other comprehensive loss Net actuarial gain (loss)$55 $(4,904) $(901) $116 $(3,796) $(689)Net prior service (cost) credit27 (21) 54 31 (33) 63Total recorded in Accumulated other comprehensive loss$82 $(4,925) $(847) $147 $(3,829) $(626)The following table summarizes the total accumulated benefit obligations (ABO), the ABO and fair value of plan assets for defined benefit pension planswith ABO in excess of plan assets, and the PBO and fair value of plan assets for defined benefit pension plans with PBO in excess of plan assets: December 31, 2016 December 31, 2015 U.S. Non-U.S. U.S. Non-U.S.ABO$68,813 $23,711 $71,475 $23,388Plans with ABO in excess of plan assets ABO$68,813 $23,010 $71,475 $22,683Fair value of plan assets$61,622 $12,205 $61,072 $12,160Plans with PBO in excess of plan assets PBO$68,827 $23,352 $71,486 $23,052Fair value of plan assets$61,622 $12,209 $61,072 $12,170The following table summarizes the components of net periodic pension and OPEB expense along with the assumptions used to determine benefitobligations:69Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued) Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Pension Benefits Global OPEBPlans Pension Benefits Global OPEBPlans Pension Benefits Global OPEBPlans U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Components of expense Service cost$381 $390 $18 $406 $431 $24 $380 $389 $23Interest cost2,212 578 201 2,754 763 238 3,060 1,031 273Expected return on plan assets(3,778) (737) — (3,896) (798) — (3,914) (873) —Amortization of prior service cost (credit)(4) 14 (13) (4) 15 (14) (4) 17 (16)Amortization of net actuarial (gains) losses(25) 189 19 8 233 37 (91) 154 8Curtailments, settlements and other(a)— 2 — — 124 — (1) 3 —Net periodic pension and OPEB (income) expense$(1,214) $436 $225 $(732) $768 $285 $(570) $721 $288Weighted-average assumptions used to determine benefit obligations Discount rate3.92% 2.72% 3.93% 4.06% 3.20% 4.13% 3.73% 3.14% 3.83%Rate of compensation increase(b)N/A 2.79% N/A N/A 2.79% 4.21% N/A 2.85% 4.21%Weighted-average assumptions used to determine net expense Discount rate3.36% 2.99% 3.49% 3.73% 3.15% 3.83% 4.46% 4.10% 4.56%Expected rate of return on plan assets6.33% 5.98% N/A 6.38% 6.23% N/A 6.53% 6.28% N/ARate of compensation increase(b)N/A 2.80% N/A N/A 2.85% 4.21% N/A 2.90% 4.21%_________(a)The curtailment charges recorded in the year ended December 31, 2015 were due primarily to the GM Canada hourly pension plan that was remeasured as a result of avoluntary separation program.(b)As a result of ceasing the accrual of additional benefits for salaried plan participants, the rate of compensation increase does not have a significant effect on our U.S. pensionand OPEB plans.Effective January 2016 the discount rate used to determine the service cost and interest cost for our pension and OPEB plans was based on individualannual yield curve rates. This refinement was considered a change in estimate and applied prospectively. The use of the individual annual yield curve rateshas reduced the service cost and interest cost by $768 million in the year ended December 31, 2016, which was offset in the actuarial gains and losses uponthe December 31, 2016 remeasurement of the plans' obligations.U.S. pension plan service cost includes administrative expenses and Pension Benefit Guarantee Corporation premiums which were insignificant in theyears ended December 31, 2016, 2015 and 2014. Weighted-average assumptions used to determine net expense are determined at the beginning of the periodand updated for remeasurements. Non-U.S. pension plan administrative expenses included in service cost were insignificant in the years ended December 31,2016, 2015 and 2014.Estimated amounts to be amortized from Accumulated other comprehensive loss into net periodic benefit cost in the year ending December 31, 2017 basedon December 31, 2016 plan measurements are $261 million, consisting primarily of amortization of the net actuarial loss in the non-U.S. pension plans. AssumptionsInvestment Strategies and Long-Term Rate of Return Detailed periodic studies are conducted by our internal asset management group as well as outsideactuaries and are used to determine the long-term strategic mix among asset classes, risk mitigation strategies and the expected long-term return on assetassumptions 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. pensionplans with the assistance of outside actuaries and asset managers. While the studies incorporate data from recent plan performance and historical returns, theexpected long-term return on plan asset assumptions are determined based on long-term prospective rates of return.We continue to pursue various options to fund and derisk our pension plans, including continued changes to the pension asset portfolio mix to reducefunded status volatility. The strategic asset mix and risk mitigation strategies for the plans are tailored specifically for each plan. Individual plans havedistinct 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 contextof the specific factors affecting each plan.70Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)In setting new strategic asset mixes, consideration is given to the likelihood that the selected asset mixes will effectively fund the projected pension planliabilities, while aligning with the risk tolerance of the plans' fiduciaries. The strategic asset mixes for U.S. defined benefit pension plans are increasinglydesigned 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 classesand for mitigating risks, primarily interest rate and currency risks. Equity and fixed income managers are permitted to utilize derivatives as efficientsubstitutes for traditional securities. Interest rate derivatives may be used to adjust portfolio duration to align with a plan's targeted investment policy.Alternative investment managers are permitted to employ leverage, including through the use of derivatives, which may alter economic exposure.In December 2016 an investment policy study was completed for the U.S. pension plans. The study resulted in new target asset allocations being approvedfor the U.S. pension plans with resulting changes to the expected long-term rate of return on assets. The weighted-average long-term rate of return on assetsdecreased from 6.3% at December 31, 2015 to 6.2% at December 31, 2016. The expected long-term rate of return on plan assets used in determining pensionexpense 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 pensionplans: December 31, 2016 December 31, 2015 U.S. Non-U.S. U.S. Non-U.S.Equity15% 21% 14% 21%Debt61% 50% 62% 50%Other(a)24% 29% 24% 29%Total100% 100% 100% 100%__________(a)Primarily includes private equity, real estate and absolute return strategies which mainly consist of hedge funds.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, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 TotalU.S. Pension Plan Assets Common and preferred stocks$8,288 $35 $3 $8,326 $7,637 $18 $8 $7,663Government and agency debt securities(a)— 11,374 — 11,374 — 14,318 — 14,318Corporate and other debt securities— 25,452 — 25,452 — 22,963 1 22,964Other investments, net486 288 403 1,177 466 130 472 1,068Net plan assets subject to leveling$8,774 $37,149 $406 46,329 $8,103 $37,429 $481 46,013Plan assets measured at net asset value Investment funds 6,509 6,321Private equity and debt investments 4,012 4,529Real estate investments 3,634 3,828Total plan assets measured at net asset value 14,155 14,678Other plan assets, net(b) 1,138 381Net plan assets $61,622 $61,07271Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued) December 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 TotalNon-U.S. Pension Plan Assets Common and preferred stocks$984 $3 $— $987 $1,079 $1 $1 $1,081Government and agency debt securities(a)— 3,222 — 3,222 — 3,258 — 3,258Corporate and other debt securities— 2,044 3 2,047 — 1,953 1 1,954Other investments, net37 152 595 784 47 47 642 736Net plan assets subject to leveling$1,021 $5,421 $598 7,040 $1,126 $5,259 $644 7,029Plan assets measured at net asset value Investment funds 4,449 4,475Private equity and debt investments 546 529Real estate investments 1,092 1,095Total plan assets measured at net asset value 6,087 6,099Other plan assets (liabilities), net(b) (129) (138)Net plan assets $12,998 $12,990__________(a)Includes U.S. and sovereign government and agency issues.(b)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.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, 2016and 2015. Alternative Investment Strategies Investment funds include hedge funds, funds of hedge funds, equity funds and fixed income funds. Hedge funds andfunds 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 indeveloped and/or emerging market countries. Fixed income funds include investments in high quality funds and, to a lesser extent, high yield funds. Highquality fixed income funds invest in government securities, investment-grade corporate bonds and mortgage and asset-backed securities. High yield fixedincome funds invest in high yield fixed income securities issued by corporations which are rated below investment grade. Other investment funds alsoincluded in this category primarily represent multi-strategy funds that invest in broadly diversified portfolios of equity, fixed income and derivativeinstruments.Private equity and debt investments primarily consist of investments in private equity and debt funds. These investments provide exposure to and benefitfrom 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 which are primarily engaged in the ownership, acquisition, development, financing, sale and/ormanagement of income-producing real estate properties, both commercial and residential. These funds typically seek long-term growth of capital and currentincome 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 estateinvestments. 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 orderto 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 usedto fund benefit payments when currently due. Plan management monitors liquidity risk on an ongoing basis and has procedures in place that are designed tomaintain 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 exchangerates might change in a manner that has an adverse effect on the value of the foreign currency denominated assets or liabilities. Forward currency contractsmay be used to manage and mitigate foreign currency risk.72Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)The pension plans may invest in debt securities for which any change in the relevant interest rates for particular securities might result in an investmentmanager being unable to secure similar returns upon the maturity or the sale of securities. In addition changes to prevailing interest rates or changes inexpectations of future interest rates might result in an increase or decrease in the fair value of the securities held. Interest rate swaps and other financialderivative 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 cashequivalents. The following table summarizes net benefit payments expected to be paid in the future, which include assumptions related to estimated futureemployee service: Pension Benefits Other Benefits U.S. Plans Non-U.S. Plans Global Plans2017$5,476 $1,382 $3802018$5,195 $1,247 $3742019$5,068 $1,242 $3692020$4,953 $1,234 $3652021$4,762 $1,230 $3622022 - 2026$22,157 $5,909 $1,775Note 15. Commitments and ContingenciesLitigation-Related Liability and Tax Administrative Matters In the normal course of business, we are named from time to time as a defendant in variouslegal actions, including arbitrations, class actions and other litigation, that arise in connection with our business as a global company. We identify below thematerial individual proceedings and investigations in connection with which we believe a material loss is reasonably possible or probable. We accrue formatters when we believe that losses are probable and can be reasonably estimated. At December 31, 2016 and 2015, accruals were $1.3 billion and $1.2billion and were recorded in Accrued liabilities and Other liabilities. In many proceedings, it is inherently difficult to determine whether any loss is probableor even reasonably possible or to estimate the size or range of the possible loss. Accordingly an adverse outcome from such proceedings could exceed theamounts accrued by an amount that could be material to our results of operations or cash flows in any particular reporting period.Proceedings Related to Ignition Switch Recall and Other Recalls In 2014 we announced various recalls relating to safety, customer satisfaction and othermatters. Those recalls included recalls to repair ignition switches that could under certain circumstances unintentionally move from the “run” position to the“accessory” or “off” position with a corresponding loss of power, which could in turn prevent airbags from deploying in the event of a crash.Through January 27, 2017 we were aware of 100 putative class actions pending against GM in various federal and state trial courts in the U.S. and 21putative class actions pending in various Provincial Courts in Canada alleging that consumers who purchased or leased vehicles manufactured by GM orGeneral Motors Corporation had been economically harmed by one or more of the recalls announced in 2014 and/or the underlying vehicle conditionsassociated with those recalls (economic-loss cases). In general, these economic-loss cases seek recovery for purported compensatory damages, such as allegedbenefit-of-the-bargain damages or damages related to alleged diminution in value of the vehicles, as well as punitive damages, injunctive relief and otherrelief. There are also two civil actions brought by state governmental entities relating to the 2014 recalls that seek injunctive relief as well as civil penaltiesand attorneys' fees for alleged violations of state laws.Through January 27, 2017 we were aware of 284 actions pending in various federal and state trial courts in the U.S. and 14 actions pending in variousProvincial Courts in Canada alleging injury or death as a result of defects that may be the subject of recalls announced in 2014 (personal injury cases). Ingeneral, these personal injury cases seek recovery for purported compensatory damages, punitive damages and other relief.During 2016, the U.S. District Court for the Southern District of New York (the district court) and a Texas court administering a Texas state multidistrictlitigation scheduled a combined eight ignition-switch personal injury cases for bellwether trials. None of those resulted in a finding of liability against GM;juries in two cases returned verdicts in favor of GM, a court dismissed one case on summary judgment, plaintiffs dismissed two cases with prejudice beforetrial, and the parties settled the remaining three73Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)cases. The district court has scheduled additional personal injury bellwether trials for 2017 and 2018. Each bellwether trial will be tried on its facts and theresult of any subsequent bellwether trial may be different from the earlier bellwether trials.On July 15, 2016 the district court granted in part and denied in part GM's motion to dismiss plaintiffs' complaint seeking damages for alleged economicloss relating to the ignition switch and other recalls by GM in 2014. The district court dismissed plaintiffs' claims brought under the Racketeer Influencedand Corrupt Organization Act (RICO), and those brought by any plaintiff whose vehicle was not allegedly defective when sold. The district court alsorejected Plaintiffs' broadest theory of damages – that plaintiffs could seek recovery for alleged reduction in the value of their vehicles due to damage to GM'sreputation and brand as a result of the ignition switch matter. The district court also held that plaintiffs did not have a common basis for their claims across alldefects and models to proceed as a single class, and that the remaining claims may have to proceed individually or in subclasses of vehicles affected by acommon defect. Further, the district court held that the named plaintiffs may assert claims only on behalf of owners of the same vehicle models that theythemselves purchased (or leased) or models with sufficiently similar defects, and that it will not specify the specific permissible class claims until the class-certification stage. Finally, the district court granted GM's motion to dismiss with respect to certain state law claims but denied it as to other state law claims.The court held that the viability of state law claims will depend on each state's specific laws and plaintiffs' specific factual allegations. While the rulingaddressed post-bankruptcy claims, we believe the district court's legal holdings should apply to limit plaintiffs' pre-bankruptcy claims similarly. OnSeptember 15, 2016, Plaintiffs filed a Fourth Amended Consolidated Complaint amending their economic-loss claims. On December 7, 2016 GM moved todismiss certain claims in that complaint as well.Because many plaintiffs in the actions described in the above paragraphs are suing over the conduct of General Motors Corporation or vehiclesmanufactured by that entity for liabilities not expressly assumed by GM, we moved to enforce the terms of the July 2009 Sale Order and Injunction (2009Sale Order) issued by the United States Bankruptcy Court for the Southern District of New York (Bankruptcy Court) to preclude claims from being assertedagainst us for, among other things, personal injuries based on pre-sale accidents, any economic-loss claims based on acts or conduct of General MotorsCorporation and claims asserting successor liability for obligations owed by General Motors Corporation (successor liability claims). On April 15, 2015 theBankruptcy Court issued a decision precluding claims against us based upon pre-sale accidents, claims based upon the acts or conduct by General MotorsCorporation and successor liability claims, except for claims asserting liabilities that had been expressly assumed by us in the July 2009 Sale Agreement, andclaims that could be asserted against us only if they were otherwise viable and arose solely out of our own independent post-closing acts and did not in anyway rely on acts or conduct by General Motors Corporation. Plaintiffs appealed the Bankruptcy Court’s decision and we cross appealed with respect tocertain issues to preserve our rights.On July 13, 2016 a three judge panel of the United States Court of Appeals for the Second Circuit (Second Circuit) issued a decision and judgmentaffirming in part, reversing in part, and vacating portions of the Bankruptcy Court's April 15, 2015 decision and subsequent judgment. Among other things,the Second Circuit held that the 2009 Sale Order could not be enforced to bar claims against GM asserted by either plaintiffs who purchased used vehiclesafter the sale closing or against purchasers who asserted claims relating to the ignition switch defect, including pre-closing personal injury claims andeconomic-loss claims. The Second Circuit also vacated that portion of the Bankruptcy Court judgment enforcing the 2009 Sale Order against plaintiffs withpre-sale claims based on defects other than the ignition switch and remanded that issue to the Bankruptcy Court for further proceedings. The Second Circuitdenied our request for an en banc review of the panel's decision and judgment. On December 13, 2016 we petitioned for certiorari to the United StatesSupreme Court. In 2014 GM voluntarily established the Ignition Switch Recall Compensation Program (the Program), administered by an independentadministrator, which provided compensation for individuals who died or suffered personal injuries (or for their families) as a result of the ignition switchdefect, both before and after bankruptcy. The Program completed its claims review process in the three months ended September 30, 2015, but continues toprocess acceptances that require court approval and resolve liens related to accepted claims. Accident victims (or their families) that accept a payment underthe Program agree to settle all claims against GM related to the accident. As a result, certain pre-closing personal injury claims relating to the ignition switchdefect were resolved through this program. In the putative shareholder class action filed in the United States District Court for the Eastern District of Michigan (Eastern District) on behalf ofpurchasers of our common stock from November 17, 2010 to July 24, 2014 (Shareholder Class Action), the lead plaintiff, the New York State Teachers'Retirement System, alleged that GM and several current and former officers and employees made material misstatements and omissions relating to problemswith the ignition switch and other matters in SEC filings and other public statements. On May 23, 2016 the Eastern District entered a judgment approving aclass-wide settlement of the Shareholder Class Action for $300 million. One shareholder has filed an appeal of the decision approving the settlement.On February 11, 2016 the Delaware Supreme Court affirmed the dismissal of four consolidated shareholder derivative actions that had been pending in theDelaware Chancery Court. In light of the Delaware Supreme Court’s decision, proceedings have74Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)resumed in the two consolidated shareholder derivative actions in the Eastern District that had been stayed pending disposition of the Delaware cases and theEastern District is now considering our motion to dismiss in those actions. In early 2016 an additional shareholder derivative action was filed in the EasternDistrict against certain current and former GM directors and officers making similar allegations to the two other shareholder derivative actions that arepending in the Eastern District. This new derivative action has been transferred to the same judge handling those two other shareholder derivative actions.Two derivative actions filed in the Circuit Court of Wayne County, Michigan, which have been consolidated, are stayed pending disposition of the federalderivative actions.In connection with the 2014 recalls, we have from time to time received subpoenas and other requests for information related to investigations by agenciesor other representatives of U.S. federal, state and the Canadian governments. On January 18, 2017, GM resolved an SEC investigation. On December 15,2016, we received notice of a Final Decision and Order from the Federal Trade Commission closing its investigation into GM's certified pre-owned vehicleadvertising. The Final Decision and Order does not require any payment by GM, but it does require GM to make certain advertising disclosures and sendnotices to certain customers who purchased certified pre-owned vehicles. Ongoing matters of investigations as of December 31, 2016 include litigationinitiated by the Arizona Attorney General, litigation initiated by the Orange County District Attorney, and investigations by 49 state attorneys general whichmay result in litigation. We believe we are cooperating fully with all reasonable pending requests for information. We have accrued for these matters to theextent required by law and regulations. Such matters could in the future result in the imposition of material damages, fines, civil consent orders, civil andcriminal penalties or other remedies.Under the DPA we consented to the filing of a two-count information (the information) in the district court charging GM with a scheme to conceal materialfacts from a government regulator, in violation of Title 18, United States Code, Section 1001, and wire fraud, in violation of Title 18, United States Code,Section 1343. We have pled not guilty to the charges alleged in the information. Under the DPA we paid the United States $900 million as a financialpenalty. Payment was made in the three months ended September 30, 2015.Pursuant to the DPA, the Office agreed to recommend to the district court that prosecution of GM on the information be deferred for three years. The Officealso agreed that if we are in compliance with all of our obligations under the DPA, the Office will, within 30 days after the expiration of the period of deferral(including any extensions thereto), seek dismissal with prejudice of the information filed against GM. The DPA further provides that, in the event the Officedetermines during the period of deferral of prosecution (or any extensions thereof) that we have violated any provision of the DPA, the Office may in itsdiscretion either prosecute GM on the charges alleged in the information or impose an extension of the period of deferral of prosecution of up to oneadditional year, but in no event will the total term of the deferral-of-prosecution period under the DPA exceed four years.In the DPA, we also agreed to retain an independent monitor (the Monitor) for a period of three years to review and assess our policies, practices orprocedures related to statements about motor vehicle safety, the provision of information to those responsible for recall decisions, recall processes andaddressing known defects in certified pre-owned vehicles. The Office has the authority to lengthen the Monitor's term up to one year if the Office determineswe have violated the DPA. Likewise, the Office may shorten the Monitor's term if the Office determines that a monitor is no longer necessary. We are requiredto pay the compensation and expenses of the Monitor and of the persons hired under his or her authority. The Monitor commenced his term in November2015.The total amount accrued at December 31, 2016 reflects amounts for a combination of settled but unpaid matters, and for the remaining unsettledinvestigations, claims and/or lawsuits relating to the ignition switch recalls and other related recalls represents a combination of our best single pointestimates where determinable and, where no such single point estimate is determinable, our estimate of the low end of the range of probable loss with regardto such matters, if that is determinable. We believe it is probable that we will incur additional liabilities beyond what has already been accrued with regard toat least a portion of the remaining matters, whether through settlement or judgment; however, we are currently unable to estimate an overall amount or rangeof loss because these matters involve significant uncertainties, including the legal theory or the nature of the investigations, claims and/or lawsuits, thecomplexity of the facts, the lack of documentation available to us with respect to particular cases or groups of cases, the results of any investigation orlitigation and the timing of resolution of the investigation or litigations, including any appeals, further proceedings following the Supreme Court's decisionas to whether it will grant review of the Second Circuit's July 13, 2016 decision, and further proceedings following the district court's July 15, 2016 decisionand its decision on GM's motion to dismiss the Fourth Amended and Consolidated Complaint in the multidistrict litigation. We will continue to considerresolution of pending matters involving ignition switch recalls and other recalls where it makes sense to do so.GM Canada Dealers' Claim On February 12, 2010 a claim was filed in the Ontario Superior Court of Justice against GM Canada on behalf of a purportedclass of over 200 former GM Canada dealers (the Plaintiff Dealers) which had entered into wind-75Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)down agreements with GM Canada. In May 2009 in the context of the global restructuring of GM's business and the possibility that GM Canada might berequired to initiate insolvency proceedings, GM Canada offered the Plaintiff Dealers the wind-down agreements to assist with their exit from the GM Canadadealer network and to facilitate winding down their operations in an orderly fashion. The Plaintiff Dealers allege that their Dealer Sales and ServiceAgreements were wrongly terminated by GM Canada and that GM Canada failed to comply with certain disclosure obligations, breached its statutory duty offair dealing and unlawfully interfered with the Plaintiff Dealers' statutory right to associate in an attempt to coerce the Plaintiff Dealers into accepting thewind-down agreements. The Plaintiff Dealers seek damages and assert that the wind-down agreements are rescindable. The Plaintiff Dealers' initial pleadingmakes reference to a claim “not exceeding” 750 million Canadian Dollars, without explanation of any specific measure of damages. On March 1, 2011 thecourt approved certification of a class for the purpose of deciding a number of specifically defined issues. A number of former dealers opted out ofparticipation in the litigation, leaving 181 dealers in the certified class. On July 8, 2015 the Ontario Superior Court dismissed the Plaintiff Dealers’ claimagainst GM Canada. The court also dismissed GM Canada’s counterclaim against the Plaintiff Dealers for repayment of the wind-down payments made tothem by GM Canada as well as for other relief. All parties have filed notices of appeal. The appeals and cross appeals were heard by the Ontario Court ofAppeal in January 2017.GM Korea Wage Litigation Commencing on or about September 29, 2010 current and former hourly employees of GM Korea Company (GM Korea) filedeight separate group actions in the Incheon District Court in Incheon, Korea. The cases, which in aggregate involve more than 10,000 employees, allege thatGM Korea failed to include bonuses and certain allowances in its calculation of Ordinary Wages due under the Presidential Decree of the Korean LaborStandards Act. On November 23, 2012 the Seoul High Court (an intermediate level appellate court) affirmed a decision of the Incheon District Court in a caseinvolving five GM Korea employees which was contrary to GM Korea's position. GM Korea appealed to the Supreme Court of the Republic of Korea(Supreme Court). On May 29, 2014 the Supreme Court remanded the case to the Seoul High Court for consideration consistent with earlier Supreme Courtprecedent holding that while fixed bonuses should be included in the calculation of Ordinary Wages, claims for retroactive application of this rule would bebarred under certain circumstances. On reconsideration, the Seoul High Court held in GM Korea's favor on October 30, 2015, after which the plaintiffsappealed to the Supreme Court. In July 2014 GM Korea and its labor union also agreed to include bonuses and certain allowances in Ordinary Wagesretroactive to March 1, 2014. Therefore our accrual related to these cases was reclassified from a contingent liability to the Pensions liability. We estimate ourreasonably possible loss in excess of amounts accrued to be 611 billion South Korean Won (equivalent to $506 million) at December 31, 2016, which relatesto periods before March 1, 2014. We are also party to litigation with current and former salaried employees over allegations relating to Ordinary Wagesregulation. On November 26 and 27, 2015 the Supreme Court remanded two salary cases to the Seoul High Court for a review of the merits. At December 31,2016 we identified a reasonably possible loss for salary cases in excess of the amounts accrued to be 186 billion South Korean Won (equivalent to $154million). Both the scope of claims asserted and GM Korea's assessment of any or all of the individual claim elements may change if new information becomesavailable. These cases are currently pending before various courts in Korea.Other Litigation-Related Liability and Tax Administrative Matters Various other legal actions, governmental investigations, claims and proceedings arepending against us or our related companies or joint ventures, including matters arising out of alleged product defects; employment-related matters;governmental regulations relating to product and workplace safety, emissions and fuel economy; product warranties; financial services; dealer, supplier andother contractual relationships; government regulations relating to payments to foreign companies; government regulations relating to competition issues;tax-related matters not subject to the provision of ASC 740, Income Taxes (indirect tax-related matters); and environmental protection laws, including lawsregulating air emissions, water discharges, waste management and environmental remediation. We believe that appropriate accruals have been established forlosses that are probable and can be reasonably estimated. It is possible that the resolution of one or more of these matters could exceed the amounts accruedin an amount that could be material to our results of operations.Indirect tax-related matters are being litigated globally pertaining to value added taxes, customs, duties, sales, property taxes and other non-income taxrelated 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 South American administrative proceedings are indirect tax-related and may require that we deposit fundsin escrow or provide an alternative form of security which may range from $200 million to $600 million at December 31, 2016. Some of the matters mayinvolve compensatory, punitive or other treble damage claims, environmental remediation programs or sanctions that, if granted, could require us to paydamages or make other expenditures in amounts that could not be reasonably estimated at December 31, 2016. We believe that appropriate accruals havebeen established for losses that are probable and can be reasonably estimated. For indirect tax-related matters we estimate our reasonably possible loss inexcess of amounts accrued to be up to approximately $1.1 billion at December 31, 2016.76Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)Takata Matters On May 4, 2016 NHTSA issued an amended consent order requiring Takata to file DIRs for previously unrecalled front airbag inflators thatcontain an ammonium nitrate-based propellant without a moisture absorbing desiccant on a multi-year, risk-based schedule through 2019 impacting tens ofmillions of vehicles produced by numerous automotive manufacturers. NHTSA concluded that the likely root cause of the rupturing of the airbag inflators isa function of time, temperature cycling and environmental moisture. On May 16, 2016 Takata issued its first DIR in connection with the amended consentorder, and on January 3, 2017, Takata issued its second set of DIRs.Although we do not believe there is a safety defect at this time in any GM vehicles within scope of the Takata DIR, in cooperation with NHTSA we filedPreliminary DIRs on May 27, 2016, updated as of June 13, 2016, covering 2.5 million of certain of our GMT900 vehicles, which are full-size pick-up trucksand SUVs. On November 15, 2016 we filed a petition for inconsequentiality and request for deferral of determination regarding certain GMT900 vehiclesequipped with Takata inflators. On November 28, 2016 NHTSA granted GM's deferral request in connection with this petition. The deferral provides GMuntil August 31, 2017 to present evidence and analysis that our vehicles do not pose an unreasonable risk to motor vehicle safety. We believe that thistimeline will permit us to complete our testing of the relevant non-desiccated Takata inflators in GMT900 vehicles and to prove to NHTSA that the inflatorsin these vehicles do not present an unreasonable risk to safety and that no repair will ultimately be required.Takata filed a second set of equipment DIRs on January 3, 2017 and we filed a second set of Preliminary DIRs for certain GMT900 vehicles on January 10,2017. These January 2017 DIRs are consistent with GM’s May 2016 DIRs. On the same day, we also filed a second petition for inconsequentiality anddeferral of decision with respect to the vehicles subject to our January 2017 DIRs. On January 18, 2017, NHTSA consolidated our first and second petitionsfor inconsequentiality and will rule on both at the same time.We believe these vehicles are currently performing as designed and ongoing testing continues to support the belief that the vehicles' unique design andintegration mitigates against inflator degradation. We believe that the results of further testing and analysis will demonstrate that the vehicles do not presentan unreasonable risk to safety and that no repair will ultimately be required. Accordingly, no warranty provision has been made for any repair associated withour vehicles subject to the Preliminary DIRs and amended consent order. However, in the event we are ultimately obligated to repair the inflators in thesevehicles, we estimate a reasonably possible cost of up to $880 million for the 6.9 million vehicles subject to either the Preliminary DIRs or future TakataDIRs under the amended consent order.Through January 27, 2017 we were aware of one putative class action pending against GM in federal court in the U.S., one putative class action in Mexicoand seven putative class actions pending in various Provincial Courts in Canada arising out of allegations that airbag inflators manufactured by Takata aredefective. In addition, the New Mexico Attorney General has initiated litigation against Takata and numerous automotive manufacturers, including GM. Atthis early stage of these proceedings, we are unable to provide an evaluation of the likelihood that a loss will be incurred or an estimate of the amounts orrange of possible loss.Product Liability With respect to product liability claims (other than claims relating to the ignition switch recalls discussed above) involving our andGeneral Motors Corporation products, we believe that any judgment against us for actual damages will be adequately covered by our recorded accruals and,where applicable, excess liability insurance coverage. In addition we indemnify dealers for certain product liability related claims including products sold byGeneral Motors Corporation's dealers. At December 31, 2016 and 2015 liabilities of $656 million and $712 million were recorded in Accrued liabilities andOther liabilities for the expected cost of all known product liability claims plus an estimate of the expected cost for product liability claims that have alreadybeen incurred and are expected to be filed in the future for which we are self-insured. In light of vehicle recalls in recent years it is reasonably possible thatour accruals for product liability claims may increase in future periods in material amounts, although we cannot estimate a reasonable range of incrementalloss based on currently available information.Guarantees We enter into indemnification agreements for liability claims involving products manufactured primarily by certain joint ventures. We alsoprovide vehicle repurchase guarantees and payment guarantees on commercial loans outstanding with third parties such as dealers. These guaranteesterminate in years ranging from 2017 to 2031 or upon the occurrence of specific events or are ongoing. We believe that the related potential costs incurredare adequately covered and our recorded accruals are insignificant. The maximum liability, calculated as future undiscounted payments, was $4.4 billion and$2.6 billion for these guarantees at December 31, 2016 and 2015, the majority of which relate to the indemnification agreements.77Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)In some instances certain assets of the party whose debt or performance we have guaranteed may offset, to some degree, the amount of certain guarantees.Our payables to the party whose debt or performance we have guaranteed may also reduce the amount of certain guarantees. If vehicles are required to berepurchased under vehicle repurchase obligations, the total exposure would be reduced to the extent vehicles are able to be resold to another dealer.We periodically enter into agreements that incorporate indemnification provisions in the normal course of business. It is not possible to estimate ourmaximum exposure under these indemnifications or guarantees due to the conditional nature of these obligations. Insignificant amounts have been recordedfor 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.Credit Cards Credit card programs offer rebates that can be applied primarily against the purchase or lease of our vehicles. At December 31, 2016 and 2015,our redemption liability was insignificant, our deferred revenue was $286 million and $258 million, and qualified cardholders had rebates available, net ofdeferred program revenue, of $1.9 billion and $2.0 billion. Our redemption liability and deferred revenue are recorded in Accrued liabilities and Otherliabilities.Noncancelable Operating Leases The following table summarizes our minimum commitments under noncancelable operating leases having initial terms inexcess of one year, primarily for property: 2017 2018 2019 2020 2021 ThereafterMinimum commitments(a)$294 $280 $249 $196 $166 $482Sublease income(62) (61) (57) (45) (39) (210)Net minimum commitments$232 $219 $192 $151 $127 $272__________(a)Certain leases contain escalation clauses and renewal or purchase options.Rental expense under operating leases was $308 million, $357 million and $444 million in the years ended December 31, 2016, 2015 and 2014.Note 16. Income Taxes Years Ended December 31, 2016 2015 2014U.S. income$8,943 $5,594 $1,683Non-U.S. income (loss)459 (70) 469Income before income taxes and equity income$9,402 $5,524 $2,152 Years Ended December 31, 2016 2015 2014Current income tax expense (benefit) U.S. federal$(126) $5 $(23)U.S. state and local38 (5) 154Non-U.S.618 860 671Total current income tax expense530 860 802Deferred income tax expense (benefit) U.S. federal1,372 1,001 (581)U.S. state and local223 199 (60)Non-U.S.291 (3,957) 67Total deferred income tax expense (benefit)1,886 (2,757) (574)Total income tax expense (benefit)$2,416 $(1,897) $228Provisions are made for estimated U.S. and non-U.S. income taxes, less available tax credits and deductions, which may be incurred on the remittance ofour basis differences in investments in foreign subsidiaries and corporate joint ventures not deemed78Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)to be indefinitely reinvested. Taxes have not been provided on basis differences in investments primarily as a result of earnings in foreign subsidiaries whichare deemed indefinitely reinvested of $2.4 billion and $2.8 billion at December 31, 2016 and 2015. Additional basis differences related to investments innonconsolidated China JVs exist of $4.1 billion at December 31, 2016 and 2015 as a result of fresh-start reporting. Quantification of the deferred tax liability,if any, associated with indefinitely reinvested basis differences is not practicable. The non-U.S. deferred income tax benefit in the year ended December 31,2015 relates primarily to the release of valuation allowances in GME. Years Ended December 31, 2016 2015 2014Income tax expense at U.S. federal statutory income tax rate$3,291 $1,933 $753State and local tax expense144 115 73Non-U.S. income taxed at other than 35%(125) (28) (72)U.S. tax on Non-U.S. income(1,026) (417) (8)Change in valuation allowances(103) (3,666) (402)Change in tax laws147 29 602Research and manufacturing incentives177 (367) (279)Goodwill impairment— — 41Settlements of prior year tax matters(46) — (275)Realization of basis differences in affiliates(94) — (256)Foreign currency remeasurement(2) 209 124Financial penalty under the DPA(a)— 315 —Other adjustments53 (20) (73)Total income tax expense (benefit)$2,416 $(1,897) $228_________(a)Refer to Note 15 for additional information on the DPA.Deferred Income Tax Assets and Liabilities Deferred income tax assets and liabilities at December 31, 2016 and 2015 reflect the effect of temporarydifferences between amounts of assets, liabilities and equity for financial reporting purposes and the bases of such assets, liabilities and equity as measuredbased on tax laws, as well as tax loss and tax credit carryforwards. The following table summarizes the components of temporary differences and carryforwardsthat give rise to deferred tax assets and liabilities: December 31, 2016 December 31, 2015Deferred tax assets Postretirement benefits other than pensions$2,720 $2,712Pension and other employee benefit plans5,701 6,502Warranties, dealer and customer allowances, claims and discounts(a)8,102 6,725Property, plants and equipment756 1,981U.S. capitalized research expenditures6,127 7,413U.S. operating loss and tax credit carryforwards(b)8,987 8,623Non-U.S. operating loss and tax credit carryforwards(c)5,621 5,826Miscellaneous(a)1,950 2,086Total deferred tax assets before valuation allowances39,964 41,868Less: valuation allowances(4,644) (5,021)Total deferred tax assets35,320 36,847Deferred tax liabilities Intangible assets732 590Net deferred tax assets$34,588 $36,257_________79Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)(a)At December 31, 2015 deferred tax assets related to certain sales incentives were reclassified from Miscellaneous to Warranties, dealer and customer allowances, claims anddiscounts to conform to the current period presentation.(b)At December 31, 2016 U.S. operating loss and tax credit carryforwards of $8.7 billion expire by 2036 if not utilized and the remaining balance of $0.3 billion may be carriedforward indefinitely.(c)At December 31, 2016 Non-U.S. operating loss and tax credit carryforwards of $1.3 billion expire by 2036 if not utilized and the remaining balance of $4.3 billion may becarried forward indefinitely.Valuation Allowances At December 31, 2016 valuation allowances against deferred tax assets of $4.6 billion were comprised of cumulative losses and taxcredits, primarily in GME, South Korea and certain U.S. states.At December 31, 2015 as a result of business restructuring and improving profitability in certain European businesses evidenced by three years of adjustedcumulative earnings and the completion of our near- and medium-term business plans in the three months ended December 31, 2015 that forecast continuingimprovement in profitability, we determined that it was more likely than not that our future earnings will be sufficient to realize the deferred tax assets inthese European businesses. Accordingly we reversed $3.9 billion of GME's valuation allowances resulting in an income tax benefit.Uncertain Tax Positions The following table summarizes activity of the total amounts of unrecognized tax benefits: Years Ended December 31, 2016 2015 2014Beginning balance$1,385 $1,877 $2,530Additions to current year tax positions49 54 184Additions to prior years' tax positions97 115 149Reductions to prior years' tax positions(193) (378) (603)Reductions in tax positions due to lapse of statutory limitations(108) (201) (164)Settlements(1) (3) (138)Other(7) (79) (81)Ending balance$1,222 $1,385 $1,877At December 31, 2016 and 2015 there were $712 million and $896 million of unrecognized tax benefits that if recognized would favorably affect oureffective tax rate in the future. In the years ended December 31, 2016, 2015 and 2014 income tax related interest and penalties were insignificant. AtDecember 31, 2016 and 2015 we had liabilities of $172 million and $183 million for income tax related interest and penalties.At December 31, 2016 it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax benefits in the next twelvemonths.Other Matters Income tax returns are filed in multiple jurisdictions and are subject to examination by taxing authorities throughout the world. We haveopen tax years from 2006 to 2016 with various significant tax jurisdictions. Tax authorities may have the ability to review and adjust net operating loss ortax 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 todiffering interpretations of applicable tax laws and regulations as they relate to the amount, character, timing or inclusion of revenue and expenses or thesustainability of income tax credits for a given audit cycle. Given the global nature of our operations there is a risk that transfer pricing disputes may arise.We have net operating loss carryforwards in Germany through November 30, 2009 that, as a result of reorganizations that took place in 2008 and 2009,were not recorded as deferred tax assets. Depending on the outcome of pending European court decisions these loss carryforwards may be available to reducefuture taxable income in Germany.Note 17. Restructuring and Other InitiativesWe have executed various restructuring and other initiatives and we plan to execute additional initiatives in the future, if necessary, to align manufacturingcapacity and other costs with prevailing global automotive production and to improve the utilization of remaining facilities. To the extent these programsinvolve voluntary separations, no liabilities are generally recorded until offers to employees are accepted. If employees are involuntarily terminated, aliability is generally recorded at the communication date.80Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)Related charges are recorded in Automotive cost of sales and Automotive selling, general and administrative expense. The following table summarizes thereserves and charges related to restructuring and other initiatives, including postemployment benefit reserves and charges: Years Ended December 31, 2016 2015 2014Balance at beginning of period$581 $1,378 $1,349Additions, interest accretion and other456 566 1,013Payments(649) (883) (862)Revisions to estimates and effect of foreign currency(38) (480) (122)Balance at end of period(a)$350 $581 $1,378__________(a)Included temporary layoff benefits of $354 million at December 31, 2014 for GMNA. In the year ended December 31, 2016 restructuring and other initiatives related primarily to charges of $240 million at GMNA related to the cash severanceincentive program to qualified U.S. hourly employees under our 2015 labor agreement with the UAW, and separation and other programs in Australia, Koreaand India and the withdrawal of the Chevrolet brand from Europe which had costs of $110 million, a total cost since inception in 2013 of $805 million andaffected a total of approximately 4,510 employees in GMIO through December 31, 2016. We expect to complete these previously announced programs inGMIO in 2017 and incur additional restructuring and other charges related to these programs of approximately $65 million.In the year ended December 31, 2015 restructuring and other initiatives related primarily to the reversal of the U.S. Supplemental Unemployment BenefitPlan accrual for temporary layoff benefits of $317 million resulting from a plan amendment in the 2015 UAW Agreement at GMNA and the separation andother programs in Australia, Korea, Thailand, Indonesia and India and the withdrawal of the Chevrolet brand from Europe which had costs incurred of $208million, a total cost since inception of $722 million and affected a total of approximately 5,490 employees in GMIO through December 31, 2015.In the year ended December 31, 2014 restructuring and other initiatives related primarily to the termination of all vehicle and transmission production atour Bochum, Germany facility completed in December 2014 which had costs incurred of $620 million and a total cost since inception of $841 million atGME through December 31, 2014 and the separation programs in Australia and Korea, the withdrawal of the Chevrolet brand from Europe and the cessationof manufacturing in Australia which had costs incurred of $193 million and a total cost since inception of $514 million at GMIO through December 31, 2014.Exit of Russia In March 2015 we announced plans to exit Russia and ceased manufacturing, eliminated Opel brand distribution and reduced Chevrolet branddistribution in the year ended December 31, 2015. This decision impacted 300 dealers and distributors and 1,130 employees. As a result we recorded pre-taxcharges of $443 million at GME and GMIO through December 31, 2015, net of noncontrolling interests of $56 million.Note 18. Interest Income and Other Non-Operating Income Years Ended December 31, 2016 2015 2014Interest income$185 $169 $211Foreign currency transaction and remeasurement gains3 297 378Other241 155 234Total interest income and other non-operating income, net$429 $621 $823Note 19. Stockholders’ Equity and Noncontrolling InterestsPreferred and Common Stock We have 2.0 billion shares of preferred stock and 5.0 billion shares of common stock authorized for issuance. At December 31,2016 and 2015 we had 1.5 billion shares of common stock issued and outstanding.81Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)Common Stock Holders of our common stock are entitled to dividends at the sole discretion of our Board of Directors. Our dividends declared per commonshare were $1.52, $1.38 and $1.20 and our total dividends paid on common stock were $2.3 billion, $2.2 billion and $1.9 billion for the years endedDecember 31, 2016, 2015 and 2014. Holders of common stock are entitled to one vote per share on all matters submitted to our stockholders for a vote. Theliquidation 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 ourpreferred stock, if any such shares are then outstanding.In the years ended December 31, 2016 and 2015 we purchased 77 million and 102 million shares of our outstanding common stock for $2.5 billion and$3.5 billion as part of the common stock repurchase program announced in March 2015, which our Board of Directors increased and extended in January2016 and January 2017.Warrants At December 31, 2015 the number of warrants outstanding was 70 million consisting of two tranches of warrants that we issued in July 2009. Thefirst tranche expired on July 10, 2016. The second tranche is exercisable at any time prior to July 10, 2019 at an exercise price of $18.33 per share. We had 42million of these warrants outstanding at December 31, 2016. Series A Preferred Stock In December 2014 we redeemed all of the remaining outstanding shares of our Series A Preferred Stock at a price equal to theaggregate liquidation amount, including accumulated dividends, of $3.9 billion, which reduced Net income attributable to common stockholders by $809million.The following table summarizes the significant components of Accumulated other comprehensive loss: Years Ended December 31, 2016 2015 2014Foreign Currency Translation Adjustments Balance at beginning of period$(2,034) $(1,064) $(614)Other comprehensive loss before reclassification adjustment, net of tax(a)(375) (1,153) (475)Reclassification adjustment, net of tax(a)(b)(4) 198 2Other comprehensive loss, net of tax(a)(379) (955) (473)Other comprehensive income (loss) attributable to noncontrolling interests, net of tax(a)58 (15) 23Balance at end of period$(2,355) $(2,034) $(1,064)Defined Benefit Plans Balance at beginning of period$(5,999) $(7,006) $(2,501)Other comprehensive income (loss) before reclassification adjustment(1,546) 817 (6,477)Tax expense (benefit)(459) 41 (1,854)Other comprehensive income (loss) before reclassification adjustment, net of tax(1,087) 776 (4,623)Reclassification adjustment, net of tax(a)(c)118 235 118Other comprehensive income (loss), net of tax(969) 1,011 (4,505)Other comprehensive loss attributable to noncontrolling interests, net of tax(a)— (4) —Balance at end of period$(6,968) $(5,999) $(7,006)__________(a)The income tax effect was insignificant in the years ended December 31, 2016, 2015 and 2014.(b)Related to the Russia exit in the year ended December 31, 2015. Included in Automotive cost of sales. Refer to Note 17 for additional information.(c)Included in the computation of net periodic pension and OPEB (income) expense. Refer to Note 14 for additional information.Note 20. Earnings Per ShareBasic and diluted earnings per share are computed by dividing Net income attributable to common stockholders by the weighted-average common sharesoutstanding in the period. Diluted earnings per share is computed by giving effect to all potentially dilutive securities that are outstanding.82Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued) Years Ended December 31, 2016 2015 2014Basic earnings per share Net income attributable to stockholders$9,427 $9,687 $3,949Less: cumulative dividends on preferred stock and charge related to redemption and purchase ofpreferred stock (1,145)Net income attributable to common stockholders$9,427 $9,687 $2,804 Weighted-average common shares outstanding1,540 1,586 1,605Basic earnings per common share$6.12 $6.11 $1.75Diluted earnings per share Net income attributable to common stockholders – diluted$9,427 $9,686 $2,786 Weighted-average common shares outstanding – basic1,540 1,586 1,605Dilutive effect of warrants and awards under stock incentive plans30 54 82Weighted-average common shares outstanding – diluted1,570 1,640 1,687 Diluted earnings per common share$6.00 $5.91 $1.65 Potentially dilutive securities(a)— 72 46__________(a)Potentially dilutive securities attributable to outstanding warrants and stock options were excluded from the computation of diluted earnings per share because the securitieswould have had an antidilutive effect.Note 21. Stock Incentive PlansWe grant to certain employees RSUs, RSAs, PSUs and stock options (collectively, stock incentive awards) under our 2016 Equity Incentive Plan, our 2014Long-Term Incentive Plan and, prior to our 2014 Long-Term Incentive Plan, RSUs under our 2009 Long-Term Incentive Plan. Shares awarded under the plansare 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 theend of a three-year performance period, based on performance criteria determined by the Executive Compensation Committee of the Board of Directors at thetime of award. The number of shares earned may equal, exceed or be less than the targeted number of shares depending on whether the performance criteriaare met, surpassed or not met. Stock options granted expire 10 years from the grant date, with two-fifths of the award becoming exercisable approximately 19months after the date of grant and the remainder vest ratably over the next three years based on the performance of our common stock relative to that of aspecified peer group.In connection with our acquisition described in Note 9, RSAs and PSUs were granted. The RSAs vest ratably, generally over a three-year service period.The PSUs are contingent upon achievement of specific technology and commercialization milestones.Stock Incentive Awards Stock Incentive Awards(a) Shares Weighted-Average GrantDate Fair Value Weighted-AverageRemaining ContractualTerm in YearsUnits outstanding at January 1, 201644.0 $16.48 3.0Granted21.2 $31.80 Settled(8.4) $33.18 Forfeited or expired(1.7) $22.45 Units outstanding at December 31, 201655.1 $19.77 2.5__________(a) Includes the target amount of PSUs.83Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)Total compensation expense related to the above awards was $650 million, $446 million and $245 million in the years ended December 31, 2016, 2015and 2014. At December 31, 2016 the total unrecognized compensation expense for nonvested equity awards granted was $323 million. This expense is expected tobe recorded over a weighted-average period of 2.4 years. The total fair value of stock incentive awards vested was $325 million, $228 million and $221million in the years ended December 31, 2016, 2015 and 2014.Note 22. Supplementary Quarterly Financial Information (Unaudited)The following tables summarize supplementary quarterly financial information: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter2016 Total net sales and revenue$37,265 $42,372 $42,825 $43,918Automotive gross margin$4,606 $5,663 $5,556 $4,691Net income$1,931 $2,850 $2,712 $1,775Net income attributable to stockholders$1,953 $2,866 $2,773 $1,835Basic earnings per common share$1.26 $1.85 $1.79 $1.21Diluted earnings per common share$1.24 $1.81 $1.76 $1.19 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter2015 Total net sales and revenue$35,712 $38,180 $38,843 $39,621Automotive gross margin$3,690 $4,073 $5,082 $4,756Net income$908 $1,140 $1,341 $6,226Net income attributable to stockholders$945 $1,117 $1,359 $6,266Basic earnings per common share$0.58 $0.70 $0.86 $4.03Diluted earnings per common share$0.56 $0.67 $0.84 $3.92The three months ended December 31, 2015 included an income tax benefit of $3.9 billion related to the reversal of deferred tax asset valuationallowances at GME, and a gain on extinguishment of debt of $449 million related to unsecured debt in Brazil in GMSA on a pre-tax basis. The three monthsended September 30, 2015 included charges for various legal matters of approximately $1.5 billion related to the Ignition Switch Recall in Corporate on apre-tax basis. The three months ended June 30, 2015 included asset impairment charges of $297 million related to our Thailand subsidiaries in GMIO, and acharge of $604 million for the Venezuela currency devaluation in GMSA, each on a pre-tax basis. The three months ended March 31, 2015 included costsrelated to the Russia exit of $337 million in GME and $91 million in GMIO and a charge of $150 million for the Ignition Switch Recall compensationprogram in Corporate, each on a pre-tax basis.Note 23. Segment ReportingWe analyze the results of our business through the following segments: GMNA, GME, GMIO, GMSA and GM Financial. The chief operating decisionmaker evaluates the operating results and performance of our automotive segments through earnings before interest and income taxes-adjusted, which ispresented net of noncontrolling interests. The chief operating decision maker evaluates GM Financial through earnings before income taxes-adjusted becauseinterest 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 strategies. Our automotive manufacturing operations are integrated within the segments, benefitfrom broad-based trade agreements and are subject to regulatory requirements. While not all vehicles within a segment are individually profitable on a fullyallocated cost basis, those vehicles attract customers to dealer showrooms and help maintain sales volumes for other, more profitable vehicles and contributetowards meeting required fuel efficiency standards. As a result of these and other factors, we do not manage our business on an individual brand or vehiclebasis.84Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)Substantially all of the cars, trucks, crossovers and automobile parts produced are marketed through retail dealers in North America and throughdistributors and dealers outside of North America, the substantial majority of which are independently owned. In addition to the products sold to dealers forconsumer retail sales, cars, trucks and crossovers are also sold to fleet customers, including daily rental car companies, commercial fleet customers, leasingcompanies and governments. Fleet sales are completed through the dealer network and in some cases directly with fleet customers. Retail and fleet customerscan obtain a wide range of after-sale vehicle services and products through the dealer network, such as maintenance, light repairs, collision repairs, vehicleaccessories and extended service warranties.GMNA primarily meets the demands of customers in North America with vehicles developed, manufactured and/or marketed under the Buick, Cadillac,Chevrolet and GMC brands. The demands of customers outside North America are primarily met with vehicles developed, manufactured and/or marketedunder the Buick, Cadillac, Chevrolet, GMC, Holden, Opel and Vauxhall brands. We also have equity ownership stakes directly or indirectly in entitiesthrough various regional subsidiaries, primarily in Asia. These entities design, manufacture and/or market vehicles under the Baojun, Buick, Cadillac,Chevrolet, Jiefang and Wuling brands.Our automotive operations' interest income and interest expense, Maven, corporate expenditures including autonomous vehicle-related engineering andother costs and certain nonsegment specific revenues and expenses are recorded centrally in Corporate. Corporate assets consist primarily of cash and cashequivalents, marketable securities, our investment in Lyft, goodwill, intangibles, Maven vehicles and intercompany balances. All intersegment balances andtransactions have been eliminated in consolidation. The following tables summarize key financial information by segment: At and For the Year Ended December 31, 2016 GMNA GME GMIO GMSA Corporate Eliminations TotalAutomotive GMFinancial Eliminations TotalNet sales and revenue$119,022 $18,707 $11,749 $7,223 $148 $156,849 $9,558 $(27) $166,380Earnings (loss) before interest and taxes-adjusted$12,047 $(257) $1,135 $(374) $(920) $11,631 $913 $(14) $12,530Adjustments(a)$— $— $— $— $(300) $(300) $— $— (300)Automotive interest income 185Automotive interest expense (572)Net (loss) attributable to noncontrollinginterests (159)Income before income taxes 11,684Income tax expense (2,416)Net loss attributable to noncontrollinginterests 159Net income attributable to stockholders $9,427Equity in net assets of nonconsolidatedaffiliates$74 $— $7,976 $2 $— $— $8,052 $944 $— $8,996Total assets$103,738 $13,262 $20,205 $7,439 $27,163 $(36,752) $135,055 $87,947 $(1,312) $221,690Expenditures for property$7,333 $1,151 $583 $358 $12 $(2) $9,435 $107 $— $9,542Depreciation and amortization$4,281 $446 $439 $261 $18 $(5) $5,440 $4,712 $— $10,152Impairment charges$66 $122 $68 $— $— $— $256 $— $— $256Equity income$160 $— $1,970 $— $1 $— $2,131 $151 $— $2,282__________(a)Consists of a net charge of $300 million for legal related matters related to the ignition switch recall.85Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued) At and For the Year Ended December 31, 2015 GMNA GME GMIO GMSA Corporate Eliminations TotalAutomotive GMFinancial Eliminations TotalNet sales and revenue$106,622 $18,704 $12,626 $7,820 $150 $145,922 $6,454 $(20) $152,356Earnings (loss) before interest and taxes-adjusted$11,026 $(813) $1,397 $(622) $(1,001) $9,987 $837 $(10) $10,814Adjustments(a)$47 $(358) $(383) $(720) $(1,785) $(3,199) $— $— (3,199)Automotive interest income 169Automotive interest expense (443)Gain on extinguishment of debt 449Net (loss) attributable to noncontrollinginterests (72)Income before income taxes 7,718Income tax benefit 1,897Net loss attributable to noncontrollinginterests 72Net income attributable to stockholders $9,687Equity in net assets of nonconsolidatedaffiliates$94 $6 $8,113 $2 $— $— $8,215 $986 $— $9,201Total assets$92,480 $13,343 $20,540 $6,990 $20,151 $(24,083) $129,421 $66,081 $(1,164) $194,338Expenditures for property$5,688 $1,070 $480 $485 $66 $(5) $7,784 $90 $— $7,874Depreciation and amortization$3,745 $412 $436 $268 $16 $(3) $4,874 $2,297 $— $7,171Impairment charges$370 $117 $324 $35 $— $— $846 $— $— $846Equity income$20 $2 $2,056 $— $— $— $2,078 $116 $— $2,194__________(a)Consists primarily of costs related to the Russia exit of $353 million in GME and $85 million in GMIO, which is net of noncontrolling interests; asset impairment charges of $297 million related to our Thailandsubsidiaries in GMIO; Venezuela currency devaluation and asset impairment charges of $720 million in GMSA; charges related to the ignition switch recall including the compensation program of $195 million andvarious settlements and legal related matters of approximately $1.6 billion in Corporate; and other of $41 million. At and For the Year Ended December 31, 2014 GMNA GME GMIO GMSA Corporate Eliminations TotalAutomotive GMFinancial Eliminations TotalNet sales and revenue$101,199 $22,235 $14,392 $13,115 $151 $151,092 $4,854 $(17) $155,929Earnings (loss) before interest and taxes-adjusted$6,603 $(1,369) $1,222 $(180) $(580) $5,696 $803 $(5) $6,494Adjustments(a)$(975) $(245) $(180) $(539) $(400) $(2,339) $12 $— (2,327)Automotive interest income 211Automotive interest expense (403)Gain on extinguishment of debt 202Net income attributable to noncontrollinginterests 69Income before income taxes 4,246Income tax expense (228)Net (income) attributable to noncontrollinginterests (69)Net income attributable to stockholders $3,949Equity in net assets of nonconsolidatedaffiliates$88 $6 $8,254 $2 $— $— $8,350 $— $— $8,350Total assets$92,781 $10,460 $22,910 $10,066 $24,308 $(29,041) $131,484 $47,745 $(1,918) $177,311Expenditures for property$4,985 $887 $681 $359 $127 $— $7,039 $52 $— $7,091Depreciation and amortization$4,122 $325 $419 $383 $75 $(4) $5,320 $918 $— $6,238Impairment charges, excluding goodwill$254 $302 $321 $3 $— $— $880 $— $— $880Equity income$19 $(45) $2,120 $— $— $— $2,094 $— $— $2,094__________(a)Consists of a catch-up adjustment related to the change in estimate for recall campaigns of $874 million in GMNA; asset impairment charges of $245 million related to our Russian subsidiaries in GME; assetimpairment charges of $158 million related to our Thailand subsidiary in GMIO; Venezuela currency devaluation charges of $419 million and Goodwill impairment charges of $120 million in GMSA; a chargerelated to the ignition switch recall compensation program of $400 million in Corporate; and other of $111 million.Automotive revenue is attributed to geographic areas based on the country in which our subsidiary is located. GM Financial revenue is attributed to thegeographic area where the financing is originated. The following table summarizes information concerning principal geographic areas:86Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued) At and For the Years Ended December 31, 2016 2015 2014 Net Sales &Revenue Long-Lived Assets Net Sales &Revenue Long-Lived Assets Net Sales &Revenue Long-Lived AssetsAutomotive U.S.$110,848 $22,241 $100,008 $21,091 $93,559 $18,813Non-U.S.46,001 15,196 45,914 12,742 57,533 12,355GM Financial U.S.7,462 32,506 4,357 18,501 2,549 5,477Non-U.S.2,069 2,299 2,077 1,890 2,288 1,755Total consolidated$166,380 $72,242 $152,356 $54,224 $155,929 $38,400No individual country other than the U.S. represented more than 10% of our total Net sales and revenue or Long-lived assets.Note 24. Supplemental Information for the Consolidated Statements of Cash FlowsThe following table summarizes the sources (uses) of cash provided by Change in other operating assets and liabilities and Cash paid for income taxes andinterest: Years Ended December 31,2016 2015 2014Accounts receivable$(1,285) $(254) $(1,248)Wholesale receivables funded by GM Financial, net(2,723) (1,124) (2,000)Inventories(320) (1,350) (309)Automotive equipment on operating leases492 159 (1,949)Change in other assets(859) (668) (210)Accounts payable3,469 1,953 19Income taxes payable(227) 60 (145)Accrued and other liabilities1,015 (801) 6,089Total$(438) $(2,025) $247Cash paid for income taxes and interest Cash paid for income taxes$757 $800 $947Cash paid for interest (net of amounts capitalized) – Automotive466 348 301Cash paid for interest (net of amounts capitalized) – GM Financial1,857 1,295 1,120Total cash paid for interest (net of amounts capitalized)$2,323 $1,643 $1,421* * * * * * *Item 9. Changes in and Disagreements with Accountants on Accounting and Financial DisclosureNone* * * * * * *Item 9A. Controls and ProceduresDisclosure Controls and Procedures We maintain disclosure controls and procedures designed to provide reasonable assurance that information required tobe disclosed in reports filed under the Exchange Act is recorded, processed, summarized and reported within the specified time periods and accumulated andcommunicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisionsregarding required disclosure.87Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESOur management, with the participation of our CEO and CFO, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules13a-15(e) or 15d-15(e) promulgated under the Exchange Act) at December 31, 2016. Based on this evaluation required by paragraph (b) of Rules 13a-15 or15d-15, our CEO and CFO concluded that our disclosure controls and procedures were effective as of December 31, 2016.Management's Report on Internal Control over Financial Reporting Our management is responsible for establishing and maintaining effective internalcontrol over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. This system is designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with U.S. GAAP.Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override ofcontrols, misstatements due to error or fraud may not be prevented or detected on a timely basis.Our management performed an assessment of the effectiveness of our internal control over financial reporting at December 31, 2016, utilizing the criteriadiscussed in the “Internal Control – Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Theobjective of this assessment was to determine whether our internal control over financial reporting was effective at December 31, 2016. Based onmanagement's assessment, we have concluded that our internal control over financial reporting was effective at December 31, 2016.The effectiveness of our internal control over financial reporting has been audited by Deloitte & Touche LLP, an independent registered publicaccounting firm, as stated in its report which is included herein.Changes in Internal Control over Financial Reporting There have not been any changes in our internal control over financial reporting during the threemonths ended December 31, 2016 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting./s/ MARY T. BARRA /s/ CHARLES K. STEVENS IIIMary T. BarraChairman & Chief Executive Officer Charles K. Stevens IIIExecutive Vice President and Chief Financial OfficerFebruary 7, 2017 February 7, 2017* * * * * * *Item 9B. Other InformationNone* * * * * * * 88Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESPART IIIItem 10. Directors, Executive Officers and Corporate GovernanceWe have adopted a code of ethics that applies to the Company's directors, officers, and employees, including the CEO, CFO, Controller and ChiefAccounting Officer and any other persons performing similar functions. The text of our code of ethics, “Winning With Integrity,” has been posted on ourwebsite at www.gm.com/company/investors at Corporate Governance. We will provide a copy of the code of ethics without charge upon request to CorporateSecretary, General Motors Company, Mail Code 482-C25-A36, 300 Renaissance Center, P.O. Box 300, Detroit, MI 48265-3000. We will disclose on ourwebsite any amendment to or waiver from our code of ethics on behalf of any of our executive officers or directors.* * * * * * *Items 10, 11, 12, 13 and 14Information required by (Items 10, 11, 12, 13 and 14) of this Form 10-K is incorporated by reference from our definitive Proxy Statement for our 2017Annual Meeting of Stockholders, which will be filed with the SEC, pursuant to Regulation 14A, not later than 120 days after the end of the 2016 fiscal year,all of which information is hereby incorporated by reference in, and made part of, this Form 10-K, except the information required by Item 10 with respect toour code of ethics in Item 10 above and disclosure of our executive officers, which is included in Item 1 of this report.* * * * * * *89Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESPART IVITEM 15. Exhibits (a)1. All Financial Statements and Supplemental Information2. Financial Statement SchedulesAll financial statement schedules are omitted as the required information is inapplicable or the information is presented in the consolidatedfinancial statements and notes thereto in Item 8. 3. Exhibits (b)ExhibitsExhibitNumber Exhibit Name 3.1 Restated Certificate of Incorporation of General Motors Company dated December 7, 2010, incorporated herein by reference toExhibit 3.2 to the Current Report on Form 8-K of General Motors Company filed December 13, 2010 Incorporated by Reference3.2 Amended and Restated Bylaws of General Motors Company, dated as of March 4, 2016, incorporated herein by reference to Exhibit3.1 to the Current Report on Form 8-K of General Motors Company filed March 8, 2016 Incorporated by Reference4.1 Indenture dated as of September 27, 2013, between General Motors Company and the Bank of New York Mellon, as Trustee,incorporated herein by reference to Exhibit 4.2 to the Registration Statement on Form S-3 of General Motors Company filed April 30,2014 Incorporated by Reference4.2 First Supplemental Indenture dated as of September 27, 2013 to the Indenture dated as of September 27, 2013 between GeneralMotors Company and the Bank of New York Mellon, as Trustee, incorporated herein by reference to Exhibit 4.3 to the RegistrationStatement on Form S-4 of General Motors Company filed May 22, 2014 Incorporated by Reference4.3 Second Supplemental Indenture dated as of November 12, 2014 to the Indenture dated as of September 27, 2013 between GeneralMotors Company and the Bank of New York Mellon, as Trustee, incorporated herein by reference to Exhibit 4.4 to the CurrentReport on Form 8-K of General Motors Company filed November 12, 2014 Incorporated by Reference4.4 Third Supplemental Indenture, dated as of February 23, 2016, to the Indenture, dated as of September 27, 2013, between GeneralMotors Company, as issuer, and The Bank of New York Mellon, as Trustee, incorporated herein by reference to Exhibit 4.1 to theCurrent Report on Form 8-K of General Motors Company filed February 23, 2016 Incorporated by Reference10.1 Stockholders Agreement, dated as of October 15, 2009 between General Motors Company, the United States Department of theTreasury, Canada GEN Investment Corporation (fka 7176384 Canada Inc.), the UAW Retiree Medical Benefits Trust, and, for limitedpurposes, General Motors LLC, incorporated herein by reference to Exhibit 10.8 to the Current Report on Form 8-K of GeneralMotors Company filed November 16, 2009 Incorporated by Reference10.2* Equity Registration Rights Agreement, dated as of October 15, 2009, between General Motors Company, the United StatesDepartment of Treasury, Canada GEN Investment Corporation (fka 7176384 Canada Inc.), the UAW Retiree Medical Benefits Trust,Motors Liquidation Company, and, for limited purposes, General Motors LLC, incorporated herein by reference to Exhibit 10.1 to theCurrent Report on Form 8-K of Motors Liquidation Company filed October 21, 2009 Incorporated by Reference10.3* Letter Agreement regarding Equity Registration Rights Agreement, dated October 21, 2010, among General Motors Company, theUnited States Department of Treasury, Canada GEN Investment Corporation, the UAW Retiree Medical Benefits Trust and MotorsLiquidation Company, incorporated herein by reference to Exhibit 10.43 to Amendment No. 5 to the Registration Statement on FormS-1 (File No. 333-168919) of General Motors Company filed November 3, 2010 Incorporated by Reference10.4* Form of Compensation Statement, incorporated herein by reference to Exhibit 10.14 to the Annual Report on Form 10-K of GeneralMotors Company filed April 7, 2010 Incorporated by Reference10.5* General Motors Company 2009 Long-Term Incentive Plan, as amended January 13, 2014, incorporated herein by reference to Exhibit10.7 to the Annual Report on Form 10-K of General Motors Company filed February 6, 2014 Incorporated by Reference10.6* The General Motors Company Deferred Compensation Plan for Non-Employee Directors, incorporated herein by reference to Exhibit10.1 to the Quarterly Report on Form 10-Q of General Motors Company filed May 6, 2011 Incorporated by Reference10.7* General Motors Company Executive Retirement Plan, with modifications through October 10, 2012, incorporated herein by referenceto Exhibit 10.12 to the Annual Report on Form 10-K of General Motors Company filed February 15, 2013 Incorporated by Reference90Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESExhibitNumber Exhibit Name 10.8* Amendment No. 1 to General Motors Company Executive Retirement Plan, with modifications through October 10, 2012,incorporated herein by reference to Exhibit 10.2 to the Current Report on Form 8-K of General Motors Company filed February 3,2016 Incorporated by Reference10.9* General Motors Company Salary Stock Plan, as amended January 13, 2014, incorporated herein by reference to Exhibit 10.10 to theAnnual Report on Form 10-K of General Motors Company filed February 6, 2014 Incorporated by Reference10.10* General Motors Company 2014 Short-Term Incentive Plan, incorporated herein by reference to Exhibit 10.2 to the Current Report onForm 8-K of General Motors Company filed June 12, 2014 Incorporated by Reference10.11* Amendment No. 1 to General Motors Company Short-Term Incentive Plan, incorporated herein by reference to Exhibit 10.3 to theCurrent Report on Form 8-K of General Motors Company filed February 3, 2016 Incorporated by Reference10.12* General Motors Company 2014 Long-Term Incentive Plan, incorporated herein by reference to Exhibit 10.1 to the Current Report onForm 8-K of General Motors Company filed June 12, 2014 Incorporated by Reference10.13* General Motors Company 2016 Equity Incentive Plan, incorporated herein by reference to Exhibit 99.1 to the Registration Statementon Form S-8 of General Motors Company filed May 13, 2016 Incorporated by Reference10.14* Form of General Motors Company Restricted Stock Unit Agreement (cash settlement) dated December 15, 2011 under the 2009Long-Term Incentive Plan, incorporated herein by reference to Exhibit 10.26 to the Annual Report on Form 10-K of General MotorsCompany filed February 27, 2012 Incorporated by Reference10.15* Form of General Motors Company Restated Stock Agreement (share settlement) dated December 15, 2011 under the 2009 Long-Term Incentive Plan, incorporated herein by reference to Exhibit 10.27 to the Annual Report on Form 10-K of General MotorsCompany filed February 27, 2012 Incorporated by Reference10.16* General Motors Company Vehicle Operations - Senior Management Vehicle Program (SMVP) Supplement, revised December 15,2005, incorporated herein by reference to Exhibit 10(g) to the Annual Report on Form 10-K of Motors Liquidation Company filedMarch 28, 2006 Incorporated by Reference10.17* General Motors LLC U.S. Executive Severance Program, incorporated herein by reference to Exhibit 10.1 to the Current Report onForm 8-K of General Motors Company filed February 3, 2016 Incorporated by Reference10.18 Amended and Restated Warrant Agreement, dated as of October 16, 2009, between General Motors Company and U.S. BankNational Association, including Form of Warrant Certificate attached as Exhibit D thereto, relating to warrants with a $30 original($10 after stock split) exercise price and a July 10, 2016 expiration date, incorporated herein by reference to Exhibit 10.29 to theAnnual Report on Form 10-K of General Motors Company filed April 7, 2010 Incorporated by Reference10.19 Amended and Restated Warrant Agreement, dated as of October 16, 2009, between General Motors Company and U.S. BankNational Association, as Warrant Agent, including a Form of Warrant Certificate attached as Exhibit D thereto, relating to warrantswith a $55 original ($18.33 after stock split) exercise price and a July 10, 2019 expiration date, incorporated herein by reference toExhibit 10.30 to the Annual Report on Form 10-K of General Motors Company filed April 7, 2010 Incorporated by Reference10.20† Amended and Restated Master Agreement, dated as of December 19, 2012, between General Motors Holdings LLC and PeugeotS.A., incorporated herein by reference to Exhibit 10.24 to the Annual Report on Form 10-K of General Motors Company filedFebruary 6, 2014 Incorporated by Reference10.21† Second Amended and Restated 3-Year Revolving Credit Agreement, dated as of May 26, 2016, among General Motors Company,General Motors Financial Company, Inc., GM Europe Treasury Company AB, General Motors do Brasil Ltda., the subsidiaryborrowers from time to time parties thereto, the several lenders from time to time parties thereto, JPMorgan Chase Bank, N.A., asadministrative agent, and Citibank, N.A., as syndication agent, incorporated herein by reference to Exhibit 10.1 to the Current Reporton Form 8-K of General Motors Company filed June 2, 2016 Incorporated by Reference10.22† Second Amended and Restated 5-Year Revolving Credit Agreement, dated as of May 26, 2016, among General Motors Company,General Motors Financial Company, Inc., General Motors do Brasil Ltda., the subsidiary borrowers from time to time parties thereto,the several lenders from time to time parties thereto, JPMorgan Chase Bank, N.A., as administrative agent, and Citibank, N.A., assyndication agent, incorporated herein by reference to Exhibit 10.2 to the Current Report on Form 8-K of General Motors Companyfiled June 2, 2016 Incorporated by Reference10.23* Director's Service Agreement between Adam Opel AG and Dr. Karl-Thomas Neumann, incorporated herein by reference to Exhibit10.28 to the Annual Report on Form 10-K of General Motors Company filed February 6, 2014 Incorporated by Reference10.24 Amendment to Warrant Agreements between General Motors Company and U.S. Bank National Association, incorporated herein byreference to Exhibit 10.1 to the Quarterly Report on Form 10-Q of General Motors Company filed April 24, 2014 Incorporated by Reference10.25* Form of General Motors Company Restricted Stock Unit Award Agreement under the 2014 Long-Term Incentive Plan, incorporatedherein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q of General Motors Company filed July 24, 2014 Incorporated by Reference10.26* Form of General Motors Company Performance Stock Unit Award Agreement under the 2014 Long-Term Incentive Plan,incorporated herein by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q of General Motors Company filed July 24,2014 Incorporated by Reference91Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESExhibitNumber Exhibit Name 10.27* Form of Non-Qualified Stock Option Agreement under the 2014 Long-Term Incentive Plan, incorporated herein by reference toExhibit 10.1 to the Current Report on Form 8-K of General Motors Company filed July 30, 2015 Incorporated by Reference10.28* Form of General Motors Company Restricted Stock Unit Award Agreement under the 2014 Long-Term Incentive Plan, incorporatedherein by reference to Exhibit 10.4 to the Quarterly Report on Form 10-Q of General Motors Company filed April 21, 2016 Incorporated by Reference10.29* Form of General Motors Company Performance Stock Unit Award Agreement under the 2014 Long-Term Incentive Plan,incorporated herein by reference to Exhibit 10.5 to the Quarterly Report on Form 10-Q of General Motors Company filed April 21,2016 Incorporated by Reference10.30* Form of Director and Officer Indemnification Agreement, incorporated herein by reference to Exhibit 10.6 to the Quarterly Report onForm 10-Q of General Motors Company filed April 21, 2016 Incorporated by Reference12 Computations of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Chargesand Preferred Stock Dividends for the Years Ended December 31, 2016, 2015, 2014, 2013 and 2012 Filed Herewith21 Subsidiaries and Joint Ventures of the Registrant as of December 31, 2016 Filed Herewith23.1 Consent of Independent Registered Public Accounting Firm for audited financial statements of General Motors Company Filed Herewith23.2 Consent of Independent Auditors for audited financial statements of SAIC General Motors Corp., Ltd. Filed Herewith24 Power of Attorney for Directors of General Motors Company Filed Herewith31.1 Section 302 Certification of the Chief Executive Officer Filed Herewith31.2 Section 302 Certification of the Chief Financial Officer Filed Herewith32 Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Furnished with thisReport99.1 SAIC General Motors Corp., Ltd. (F.K.A. Shanghai General Motors Corp., Ltd.) and subsidiaries audited consolidated financialstatements including the consolidated balance sheet as of December 31, 2016 and 2015, and the related consolidated statements ofincome and comprehensive income, equity and cash flow for the years then ended Filed Herewith101.INS XBRL Instance Document Filed Herewith101.SCH XBRL Taxonomy Extension Schema Document Filed Herewith101.CAL XBRL Taxonomy Extension Calculation Linkbase Document Filed Herewith101.DEF XBRL Taxonomy Extension Definition Linkbase Document Filed Herewith101.LAB XBRL Taxonomy Extension Label Linkbase Document Filed Herewith101.PRE XBRL Taxonomy Extension Presentation Linkbase Document Filed Herewith†Certain confidential portions have been omitted pursuant to a granted request for confidential treatment, which has been separately filed with the SEC.*Management contracts and compensatory plans and arrangements required to be filed as exhibits pursuant to Item 15(b) of this Report.* * * * * * *92Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESSIGNATURESPursuant to the requirements of Section 13 of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf bythe undersigned, hereunto duly authorized. GENERAL MOTORS COMPANY(Registrant) By:/s/ MARY T. BARRA Mary T. BarraChairman & Chief Executive Officer Date:February 7, 2017 93Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESPursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below on this 7th day of February 2017 by the followingpersons on behalf of the registrant and in the capacities indicated, including a majority of the directors.Signature Title /s/ MARY T. BARRA Chairman & Chief Executive OfficerMary T. Barra /s/ CHARLES K. STEVENS III Executive Vice President and Chief Financial OfficerCharles K. Stevens III /s/ THOMAS S. TIMKO Vice President, Controller and Chief Accounting OfficerThomas S. Timko /s/ THEODORE M. SOLSO* Lead DirectorTheodore M. Solso /s/ JOSEPH J. ASHTON* DirectorJoseph J. Ashton /s/ LINDA R. GOODEN* DirectorLinda R. Gooden /s/ JOSEPH JIMENEZ* DirectorJoseph Jimenez /s/ JANE L. MENDILLO* DirectorJane L. Mendillo /s/ ADMIRAL MICHAEL G. MULLEN, USN (ret.)* DirectorAdmiral Michael G. Mullen, USN (ret.) /s/ JAMES J. MULVA* DirectorJames J. Mulva /s/ PATRICIA F. RUSSO* DirectorPatricia F. Russo /s/ THOMAS M. SCHOEWE* DirectorThomas M. Schoewe /s/ CAROL M. STEPHENSON* DirectorCarol M. Stephenson *By:/s/ JILL E. SUTTON Jill E. Sutton Attorney-in-Fact 94Exhibit 12GENERAL MOTORS COMPANY AND SUBSIDIARIESCOMPUTATIONS OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES ANDPREFERRED STOCK DIVIDENDS(Dollars in millions) Years Ended December 31, 2016 2015 2014 2013 2012Income from continuing operations before income taxes and equity income$9,402 $5,524 $2,152 $5,648 $(30,257)Fixed charges excluding capitalized interest2,776 2,164 1,925 1,206 943Amortization of capitalized interest31 24 22 18 12Dividends from nonconsolidated affiliates2,131 2,127 1,827 661 1,544Earnings available for fixed charges$14,340 $9,839 $5,926 $7,533 $(27,758) Interest and related charges on debt$2,680 $2,044 $1,798 $1,070 $805Portion of rentals deemed to be interest96 119 127 136 138Interest capitalized in period140 101 70 81 117Total fixed charges2,916 2,264 1,995 1,287 1,060Preferred stock dividends grossed up to a pre-tax basis 1,281 2,528 859Combined fixed charges and preferred stock dividends$2,916 $2,264 $3,276 $3,815 $1,919 Ratio of earnings to fixed charges4.92 4.35 2.97 5.85 Ratio of earnings to combined fixed charges and preferred stock dividends 1.81 1.97 Earnings in the year ended December 31, 2012 were inadequate to cover fixed charges by $28.8 billion and combined fixed charges and preferred stockdividends by $29.7 billion.Exhibit 21GENERAL MOTORS COMPANYSUBSIDIARIES AND JOINT VENTURES OF THE REGISTRANTAS OF DECEMBER 31, 2016Company NameState or Sovereign Power ofIncorporation2140879 Ontario Inc.CanadaACAR Leasing Ltd.DelawareACF Investment Corp.DelawareAdam Opel AGGermanyAFS SenSub Corp.NevadaAftermarket (UK) LimitedEnglandAmeriCredit Consumer Loan Company, Inc.NevadaAmeriCredit Financial Services, Inc.DelawareAmeriCredit Funding Corp. XIDelawareAmeriCredit Syndicated Warehouse TrustDelawareAnnunciata CorporationDelawareAPGO TrustDelawareArgonaut Holdings LLCDelawareBanco GMAC S.A.BrazilBaylis (Gloucester) LimitedEngland and WalesBochum Perspektive 2022 GmbHGermanyBOCO (Proprietary) LimitedSouth AfricaBoco TrustSouth AfricaBoden Brussels NVBelgiumCadillac Europe GmbHSwitzerlandCarve-Out Ownership Cooperative LLCDelawareChevrolet Sales (Thailand) LimitedThailandChevrolet Sales India Private Ltd.IndiaChevrolet Sociedad Anonima de Ahorro para Fines DeterminadosArgentinaCHEVYPLAN, CAVenezuelaCHEVYPLAN S.A. Sociedad Administradora de Planes de Autofinanciamiento ComercialColombiaControladora General Motors, S.A. de C.V.MexicoDCJ1 LLCDelawareDealership Liquidations, Inc.DelawareDelphi Energy and Engine Management Systems UK Overseas CorporationDelawareDMAX, Ltd.OhioFAW-GM Light Duty Commercial Vehicle Co., Ltd.ChinaG.M.A.C. Financiera de Colombia S.A. Compania de Financiamiento ComercialColombiaGeneral Motors (China) Investment Company LimitedChinaGeneral Motors (Thailand) LimitedThailandGeneral Motors - Colmotores S.A.ColombiaGeneral Motors Africa and Middle East FZEUnited Arab EmiratesGeneral Motors Asia Pacific Holdings, LLCDelawareGeneral Motors Asia, Inc.DelawareGeneral Motors Asset Management CorporationDelawareGeneral Motors Australia Ltd.AustraliaGeneral Motors Austria GmbHAustriaGENERAL MOTORS COMPANYSUBSIDIARIES AND JOINT VENTURES OF THE REGISTRANTAS OF DECEMBER 31, 2016Company NameState or Sovereign Power ofIncorporationGeneral Motors Auto LLCRussian FederationGeneral Motors Automobiles Philippines, Inc.PhilippinesGeneral Motors Automotive Holdings, S.L.SpainGeneral Motors Belgium N.V.BelgiumGeneral Motors Chile Industria Automotriz LimitadaChileGeneral Motors China LLCDelawareGeneral Motors Daewoo Auto and Technology CIS LLCRussian FederationGeneral Motors de Argentina S.r.l.ArgentinaGeneral Motors de Mexico, S. de R.L. de C.V.MexicoGeneral Motors del Ecuador S.A.EcuadorGeneral Motors do Brasil Ltda.BrazilGeneral Motors East Africa LimitedKenyaGeneral Motors Egypt, S.A.E.EgyptGeneral Motors Espana, S.L.U.SpainGeneral Motors Europe Holdings, S.L.U.SpainGeneral Motors Europe LimitedEngland and WalesGeneral Motors Financial Chile LimitadaChileGeneral Motors Financial Chile S.A.ChileGeneral Motors Financial Company, Inc.TexasGeneral Motors Financial International B.V.NetherlandsGeneral Motors Financial Italia S.p.A.ItalyGeneral Motors Financial of Canada, Ltd.CanadaGeneral Motors Financial Suisse SASwitzerlandGeneral Motors Financial UK LimitedEngland and WalesGeneral Motors Finland OyFinlandGeneral Motors FranceFranceGeneral Motors GBS Hungary Kft.HungaryGeneral Motors Global Service Operations, Inc.DelawareGeneral Motors Hellas S.A.GreeceGeneral Motors Holden Australia Ltd.AustraliaGeneral Motors Holden Australia NSC Ltd.AustraliaGeneral Motors Holdings LLCDelawareGeneral Motors India Private LimitedIndiaGeneral Motors International Holdings, Inc.DelawareGeneral Motors International Operations Pte. Ltd.SingaporeGeneral Motors International Services Company SASColombiaGeneral Motors Investment Management CorporationDelawareGeneral Motors Investment Participacoes Ltda.BrazilGeneral Motors Investments Pty. Ltd.AustraliaGeneral Motors Ireland LimitedIrelandGeneral Motors Israel Ltd.IsraelGeneral Motors Italia S.r.l.ItalyGENERAL MOTORS COMPANYSUBSIDIARIES AND JOINT VENTURES OF THE REGISTRANTAS OF DECEMBER 31, 2016Company NameState or Sovereign Power ofIncorporationGeneral Motors Japan LimitedJapanGeneral Motors LimitedEnglandGeneral Motors LLCDelawareGeneral Motors Manufacturing Poland Sp. z o.o.PolandGeneral Motors Nederland B.V.NetherlandsGeneral Motors New Zealand Pensions LimitedNew ZealandGeneral Motors of Canada CompanyCanadaGeneral Motors Overseas Commercial Vehicle CorporationDelawareGeneral Motors Overseas CorporationDelawareGeneral Motors Overseas Distribution LLCDelawareGeneral Motors Peru S.A.PeruGeneral Motors Poland Spolka, z o. o.PolandGeneral Motors Portugal Lda.PortugalGeneral Motors Powertrain (Thailand) LimitedThailandGeneral Motors Research CorporationDelawareGeneral Motors South Africa (Pty) LimitedSouth AfricaGeneral Motors Suisse S.A.SwitzerlandGeneral Motors Taiwan Ltd.TaiwanGeneral Motors Technical Centre India Private LimitedIndiaGeneral Motors Treasury Center, LLCDelawareGeneral Motors Turkiye Limited SirketiTurkeyGeneral Motors UK LimitedEnglandGeneral Motors Uruguay S.A.UruguayGeneral Motors Venezolana, C.A.VenezuelaGeneral Motors Ventures LLCDelawareGeneral Motors Warehousing and Trading (Shanghai) Co. Ltd.ChinaGeneral Motors-Holden's Sales Pty. LimitedAustraliaGlobal Services Detroit LLCDelawareGlobal Tooling Service Company Europe LimitedEngland and WalesGM (UK) Pension Trustees LimitedEnglandGM Administradora de Bens Ltda.BrazilGM APO Holdings, LLCDelawareGM Auslandsprojekte GmbHGermanyGM Automotive Services Belgium NVBelgiumGM Automotive UKEnglandGM Canada Holdings LLCDelawareGM Canada Limited PartnershipCanadaGM CME Holdings C.V.NetherlandsGM Components Holdings, LLCDelawareGM Cruise LLCDelawareGM Eurometals, Inc.DelawareGM Europe Treasury Company ABSwedenGENERAL MOTORS COMPANYSUBSIDIARIES AND JOINT VENTURES OF THE REGISTRANTAS OF DECEMBER 31, 2016Company NameState or Sovereign Power ofIncorporationGM Finance Co. Holdings LLCDelawareGM Financial ABSwedenGM Financial Canada Leasing Ltd.CanadaGM Financial Consumer Discount CompanyPennsylvaniaGM Financial de Mexico, S.A. de C.V. SOFOM E.R.MexicoGM Financial Del Peru S.A.C.PeruGM Financial GmbHGermanyGM Financial Insurance Services GmbHGermanyGM Financial Mexico Holdings LLCDelawareGM Financial Real Estate GmbH & Co KGGermanyGM Global Business Services Philippines, Inc.PhilippinesGM Global Purchasing and Supply Chain Romania SrlRomaniaGM Global Technology Operations LLCDelawareGM Global Tooling Company LLCDelawareGM Holden Ltd.AustraliaGM Holdings U.K. No.1 LimitedEngland and WalesGM Holdings U.K. No.3 LimitedEngland and WalesGM Inversiones Santiago LimitadaChileGM Investment Trustees LimitedEnglandGM Korea CompanyKorea, Republic ofGM Korea Ltd.Korea, Republic ofGM LAAM Holdings, LLCDelawareGM Mexico Holdings B.V.NetherlandsGM Personnel Services, Inc.DelawareGM Plats (Proprietary) LimitedSouth AfricaGM PSA Purchasing Services S.A.BelgiumGM Regional Holdings LLCDelawareGM Retirees Pension Trustees LimitedEnglandGM Subsystems Manufacturing, LLCDelawareGM Viet Nam Motor Company Ltd.VietnamGM-DI Leasing LLCDelawareGMAC Administradora de Consorcios Ltda.BrazilGMAC Banque S.A.FranceGMAC Continental CorporationDelawareGMAC de Venezuela, C.A.VenezuelaGMAC Espana de Financiacion, S.A. UnipersonalSpainGMAC Holdings (U.K.) LimitedEnglandGMAC - Instituicao Financeira de Credito, S.A.PortugalGMAC Lease B.V. (aka Masterlease Europe)NetherlandsGMAC Nederland N.V.NetherlandsGMAC Servicios S.A.S.ColombiaGMAC UK plcEnglandGENERAL MOTORS COMPANYSUBSIDIARIES AND JOINT VENTURES OF THE REGISTRANTAS OF DECEMBER 31, 2016Company NameState or Sovereign Power ofIncorporationGMAC-Prestadora de Servios de Mo-de-Obra Ltda.BrazilGMACI Corretora de Seguros LtdaBrazilGMAM Real Estate I, LLCDelawareGMCH&SP Private Equity II L.P.CanadaGMF Europe Holdco LimitedUnited KingdomGMF Europe LLPEngland and WalesGMF Floorplan Owner Revolving TrustDelawareGMF Funding Corp.DelawareGMF Germany Holdings GmbHGermanyGMF Global Assignment LLCDelawareGMF International LLCDelawareGMF Leasing LLCDelawareGMF Leasing Warehousing TrustDelawareGMF Wholesale Receivables LLCDelawareGMGP Holdings LLCDelawareGo Motor Retailing LimitedEngland and WalesGo Trade Parts LimitedEngland and WalesGrand Pointe Holdings, Inc.MichiganGrand Pointe Park Condominium AssociationMichiganH.S.H. LimitedEngland and WalesHaines & Strange LimitedEngland and WalesHolden New Zealand LimitedNew ZealandIBC Pension Trustees LimitedEnglandIBC Vehicles LimitedEnglandLease Ownership Cooperative LLCDelawareLidlington Engineering Company, Ltd.DelawareLimited Liability Company "General Motors CIS"Russian FederationMaster Lease Germany GmbHGermanyMaven Drive LLCDelawareMillbrook Pension Management LimitedEnglandMonetization of Carve-Out, LLCDelawareMotor Repris Automocio S.L.SpainMotors Holding LLCDelawareMotors Properties (Trading) LimitedEngland and WalesMotors Properties LimitedEngland and WalesMulti-Use Lease Entity TrustDelawareNorth American New Cars LLCDelawareOmnibus BB Transportes, S. A.EcuadorOnStar de Mexico S. de R.L. de C.V.MexicoOnStar Europe Ltd.England and WalesOnStar Global Services CorporationDelawareOnStar, LLCDelawareGENERAL MOTORS COMPANYSUBSIDIARIES AND JOINT VENTURES OF THE REGISTRANTAS OF DECEMBER 31, 2016Company NameState or Sovereign Power ofIncorporationOpel Bank GmbHGermanyOpel Danmark A/SDenmarkOpel Group GmbHGermanyOpel Group Warehousing GmbHGermanyOpel Leasing GmbH (German entity)GermanyOpel Norge ASNorwayOpel Sonderdienste GmbHGermanyOpel Southeast Europe LLCHungaryOpel Sverige ABSwedenOpel Szentgotthard Automotive Manufacturing LLCHungaryOpel Wien GmbHAustriaP.T. G M AutoWorld IndonesiaIndonesiaP.T. General Motors IndonesiaIndonesiaPan Asia Technical Automotive Center Company, Ltd.ChinaPIMS Co.DelawarePT. General Motors Indonesia ManufacturingIndonesiaRiverfront Holdings III, Inc.DelawareRiverfront Holdings Phase II, Inc.DelawareRiverfront Holdings, Inc.DelawareSAIC General Motors Corporation LimitedChinaSAIC General Motors Investment LimitedHong KongSAIC General Motors Sales Company LimitedChinaSAIC GM Dong Yue Motors Company LimitedChinaSAIC GM Dong Yue Powertrain Company LimitedChinaSAIC GM (Shenyang) Norsom Motors Co., Ltd.ChinaSAIC GM Wuling Automobile Company LimitedChinaSAIC-GMAC Automotive Finance Company LimitedChinaServicios GMAC S.A. de C.V.MexicoShanghai Chengxin Used Car Operation and Management Company LimitedChinaShanghai OnStar Telematics Co. Ltd.ChinaSherwoods (Darlington) LimitedEngland and WalesSkurrays LimitedEnglandStam-Terberg Autobedrijven B. V.NetherlandsVauxhall Defined Contribution Pension Plan Trustees LimitedEngland and WalesVehicle Asset Universal Leasing TrustDelawareVHC Sub-Holdings (UK)EnglandVickers (Lakeside) LimitedEngland and WalesVision Motors LimitedEngland and WalesWRE, Inc.MichiganZona Franca Industrial Colmotores SASColombiaTotal - 250GENERAL MOTORS COMPANYSUBSIDIARIES AND JOINT VENTURES OF THE REGISTRANTAS OF DECEMBER 31, 2016Pursuant to Item 601(b)(21) of Regulation S-K we have omitted certain subsidiaries which, considered in the aggregate as a single subsidiary, would notconstitute a significant subsidiary at December 31, 2016. Additionally 58 subsidiaries of General Motors Financial Company, Inc. have been omitted thatoperate in the U.S. in the same line of business as General Motors Financial Company, Inc. at December 31, 2016.Exhibit 23.1CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMWe consent to the incorporation by reference in Registration Statement No. 333-211344 and 333-196812 on Form S-8 and Registration Statement No. 333-188153 and 333-195601 on Form S-3 of our report dated February 7, 2017 relating to the consolidated financial statements of General Motors Company andsubsidiaries (the Company) and the effectiveness of the Company's internal control over financial reporting, appearing in this Annual Report on Form 10-Kof General Motors Company for the year ended December 31, 2016./s/ DELOITTE & TOUCHE LLPDetroit, MichiganFebruary 7, 2017Exhibit 23.2CONSENT OF INDEPENDENT AUDITORSWe consent to the incorporation by reference in Registration Statement No. 333-211344 and 333-196812 on Form S-8 and Registration Statement No. 333-188153 and 333-195601 on Form S-3 of our report dated January 26, 2017 relating to the consolidated financial statements of SAIC General Motors Corp.,Ltd and subsidiaries, appearing in this Annual Report on Form 10-K of General Motors Company for the year ended December 31, 2016./s/ DELOITTE TOUCHE TOHMATSU CERTIFIED PUBLIC ACCOUNTANTS LLPShanghai, People’s Republic of ChinaFebruary 3, 2017Exhibit 24POWER OF ATTORNEYThe undersigned, a director of General Motors Company ("GM"), hereby constitutes and appoints Thomas S. Timko, Jill E. Sutton, Kyle D. Crockett and RickE. Hansen, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, placeand stead, in any and all capacities (including my capacity as a director of GM), to sign:SEC Report(s) on Covering Form 10-K Year Ended December 31, 2016and any or all amendments to such Annual Report on Form 10-K, and to file the same, with all exhibits thereto, and other documents in connection therewith,with the U.S. Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do andperform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as I might or could doin person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their or my substitute or substitutes, may lawfully do orcause to be done by virtue hereof.Pursuant to the requirements of the Securities Act of 1934, this power of attorney has been executed by the undersigned. /s/ JOSEPH J. ASHTON Joseph J. Ashton December 21, 2016 DatePOWER OF ATTORNEYThe undersigned, a director of General Motors Company ("GM"), hereby constitutes and appoints Thomas S. Timko, Jill E. Sutton, Kyle D. Crockett and RickE. Hansen, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, placeand stead, in any and all capacities (including my capacity as a director of GM), to sign:SEC Report(s) on Covering Form 10-K Year Ended December 31, 2016and any or all amendments to such Annual Report on Form 10-K, and to file the same, with all exhibits thereto, and other documents in connection therewith,with the U.S. Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do andperform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as I might or could doin person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their or my substitute or substitutes, may lawfully do orcause to be done by virtue hereof.Pursuant to the requirements of the Securities Act of 1934, this power of attorney has been executed by the undersigned. /s/ JANE L. MENDILLO Jane L. Mendillo December 14, 2016 DatePOWER OF ATTORNEYThe undersigned, a director of General Motors Company ("GM"), hereby constitutes and appoints Thomas S. Timko, Jill E. Sutton, Kyle D. Crockett and RickE. Hansen, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, placeand stead, in any and all capacities (including my capacity as a director of GM), to sign.SEC Report(s) on Covering Form 10-K Year Ended December 31, 2016and any or all amendments to such Annual Report on Form 10-K, and to file the same, with all exhibits thereto, and other documents in connection therewith,with the U.S. Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do andperform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as I might or could doin person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their or my substitute or substitutes, may lawfully do orcause to be done by virtue hereof.Pursuant to the requirements of the Securities Act of 1934, this power of attorney has been executed by the undersigned. /s/ LINDA R. GOODEN Linda R. Gooden December 14, 2016 DatePOWER OF ATTORNEYThe undersigned, a director of General Motors Company ("GM"), hereby constitutes and appoints Thomas S. Timko, Jill E. Sutton, Kyle D. Crockett and RickE. Hansen, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, placeand stead, in any and all capacities (including my capacity as a director of GM), to sign:SEC Report(s) on Covering Form 10-K Year Ended December 31, 2016and any or all amendments to such Annual Report on Form 10-K, and to file the same, with all exhibits thereto, and other documents in connection therewith,with the U.S. Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do andperform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as I might or could doin person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their or my substitute or substitutes, may lawfully do orcause to be done by virtue hereof.Pursuant to the requirements of the Securities Act of 1934, this power of attorney has been executed by the undersigned. /s/ JOSEPH JIMENEZ Joseph Jimenez December 15, 2016 DatePOWER OF ATTORNEYThe undersigned, a director of General Motors Company ("GM"), hereby constitutes and appoints Thomas S. Timko, Jill E. Sutton, Kyle D. Crockett and RickE. Hansen, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, placeand stead, in any and all capacities (including my capacity as a director of GM), to sign:SEC Report(s) on Covering Form 10-K Year Ended December 31, 2016and any or all amendments to such Annual Report on Form 10-K, and to file the same, with all exhibits thereto, and other documents in connection therewith,with the U.S. Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do andperform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as I might or could doin person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their or my substitute or substitutes, may lawfully do orcause to be done by virtue hereof.Pursuant to the requirements of the Securities Act of 1934, this power of attorney has been executed by the undersigned. /s/ ADMIRAL MICHAEL G. MULLEN, USN (ret.) Admiral Michael G. Mullen, USN (ret.) December 14, 2016 DatePOWER OF ATTORNEYThe undersigned, a director of General Motors Company ("GM"), hereby constitutes and appoints Thomas S. Timko, Jill E. Sutton, Kyle D. Crockett and RickE. Hansen, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, placeand stead, in any and all capacities (including my capacity as a director of GM), to sign:SEC Report(s) on Covering Form 10-K Year Ended December 31, 2016and any or all amendments to such Annual Report on Form 10-K, and to file the same, with all exhibits thereto, and other documents in connection therewith,with the U.S. Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do andperform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as I might or could doin person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their or my substitute or substitutes, may lawfully do orcause to be done by virtue hereof.Pursuant to the requirements of the Securities Act of 1934, this power of attorney has been executed by the undersigned. /s/ JAMES J. MULVA James J. Mulva December 20, 2016 DatePOWER OF ATTORNEYThe undersigned, a director of General Motors Company ("GM"), hereby constitutes and appoints Thomas S. Timko, Jill E. Sutton, Kyle D. Crockett and RickE. Hansen, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, placeand stead, in any and all capacities (including my capacity as a director of GM), to sign:SEC Report(s) on Covering Form 10-K Year Ended December 31, 2016and any or all amendments to such Annual Report on Form 10-K, and to file the same, with all exhibits thereto, and other documents in connection therewith,with the U.S. Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do andperform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as I might or could doin person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their or my substitute or substitutes, may lawfully do orcause to be done by virtue hereof.Pursuant to the requirements of the Securities Act of 1934, this power of attorney has been executed by the undersigned. /s/ PATRICIA F. RUSSO Patricia F. Russo December 13, 2016 DatePOWER OF ATTORNEYThe undersigned, a director of General Motors Company ("GM"), hereby constitutes and appoints Thomas S. Timko, Jill E. Sutton, Kyle D. Crockett and RickE. Hansen, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, placeand stead, in any and all capacities (including my capacity as a director of GM), to sign:SEC Report(s) on Covering Form 10-K Year Ended December 31, 2016and any or all amendments to such Annual Report on Form 10-K, and to file the same, with all exhibits thereto, and other documents in connection therewith,with the U.S. Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do andperform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as I might or could doin person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their or my substitute or substitutes, may lawfully do orcause to be done by virtue hereof.Pursuant to the requirements of the Securities Act of 1934, this power of attorney has been executed by the undersigned. /s/ THOMAS M. SCHOEWE Thomas M. Schoewe December 14, 2016 DatePOWER OF ATTORNEYThe undersigned, a director of General Motors Company ("GM"), hereby constitutes and appoints Thomas S. Timko, Jill E. Sutton, Kyle D. Crockett and RickE. Hansen, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, placeand stead, in any and all capacities (including my capacity as a director of GM), to sign:SEC Report(s) on Covering Form 10-K Year Ended December 31, 2016and any or all amendments to such Annual Report on Form 10-K, and to file the same, with all exhibits thereto, and other documents in connection therewith,with the U.S. Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do andperform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as I might or could doin person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their or my substitute or substitutes, may lawfully do orcause to be done by virtue hereof.Pursuant to the requirements of the Securities Act of 1934, this power of attorney has been executed by the undersigned. /s/ CAROL M. STEPHENSON Carol M. Stephenson December 14, 2016 DatePOWER OF ATTORNEYThe undersigned, a director of General Motors Company ("GM"), hereby constitutes and appoints Thomas S. Timko, Jill E. Sutton, Kyle D. Crockett and RickE. Hansen, and each of them, my true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for me and in my name, placeand stead, in any and all capacities (including my capacity as a director of GM), to sign:SEC Report(s) on Covering Form 10-K Year Ended December 31, 2016and any or all amendments to such Annual Report on Form 10-K, and to file the same, with all exhibits thereto, and other documents in connection therewith,with the U.S. Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do andperform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as I might or could doin person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their or my substitute or substitutes, may lawfully do orcause to be done by virtue hereof.Pursuant to the requirements of the Securities Act of 1934, this power of attorney has been executed by the undersigned. /s/ THEODORE M. SOLSO Theodore M. Solso December 13, 2016 DateGENERAL MOTORS COMPANY AND SUBSIDIARIESExhibit 31.1CERTIFICATIONI, Mary T. Barra, certify that:1. I have reviewed this Annual Report on Form 10-K of General Motors Company;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in ExchangeAct Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrantand have:a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, toensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities,particularly during the period in which this report is being prepared;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under oursupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for externalpurposes in accordance with generally accepted accounting principles;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about theeffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; andd) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscalquarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, theregistrant's internal control over financial reporting; and5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theregistrant's auditors and the Audit Committee of the registrant's Board of Directors (or persons performing the equivalent functions):a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonablylikely to adversely affect the registrant's ability to record, process, summarize and report financial information; andb) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controlover financial reporting. /s/ MARY T. BARRA Mary T. BarraChairman & Chief Executive Officer Date:February 7, 2017 GENERAL MOTORS COMPANY AND SUBSIDIARIESExhibit 31.2CERTIFICATIONI, Charles K. Stevens III, certify that:1. I have reviewed this Annual Report on Form 10-K of General Motors Company;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in ExchangeAct Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrantand have:a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, toensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities,particularly during the period in which this report is being prepared;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under oursupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for externalpurposes in accordance with generally accepted accounting principles;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about theeffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; andd) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscalquarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, theregistrant's internal control over financial reporting; and5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theregistrant's auditors and the Audit Committee of the registrant's Board of Directors (or persons performing the equivalent functions):a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonablylikely to adversely affect the registrant's ability to record, process, summarize and report financial information; andb) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controlover financial reporting. /s/ CHARLES K. STEVENS III Charles K. Stevens IIIExecutive Vice President and Chief Financial Officer Date:February 7, 2017 GENERAL MOTORS COMPANY AND SUBSIDIARIESExhibit 32CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002In connection with the Annual Report of General Motors Company (the “Company”) on Form 10-K for the period ended December 31, 2016 as filed withthe Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of such officer's knowledge:1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. /s/ MARY T. BARRA Mary T. BarraChairman & Chief Executive Officer /s/ CHARLES K. STEVENS III Charles K. Stevens IIIExecutive Vice President and Chief Financial Officer Date:February 7, 2017 Exhibit 99.1SAIC GENERAL MOTORS CORP., LTD.AND SUBSIDIARIESConsolidated Financial Statements as of and for the Years EndedDecember 31, 2016, 2015 and 2014 and Independent Auditors’ ReportSAIC GENERAL MOTORS CORP., LTD. AND SUBSIDIARIESCONTENTSPAGE(S) INDEPENDENT AUDITORS' REPORT1 - 2 CONSOLIDATED BALANCE SHEETS3 - 4 CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME5 CONSOLIDATED STATEMENTS OF EQUITY6 CONSOLIDATED STATEMENTS OF CASH FLOWS7 - 8 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS9 - 19DTT(A)(17)U00001INDEPENDENT AUDITORS' REPORTTo the Board of Directors of SAIC General Motors Corp., Ltd.:We have audited the accompanying consolidated financial statements of SAIC General Motors Corp., Ltd. and its subsidiaries (the"Company"), which comprise the consolidated balance sheets as of December 31, 2016 and 2015, and the related consolidatedstatements of income and comprehensive income, equity, and cash flows for each of the three years in the period ended December31, 2016, and the related notes to the consolidated financial statements.Management's Responsibility for the Consolidated Financial StatementsManagement is responsible for the preparation and fair presentation of these consolidated financial statements in accordance withaccounting principles generally accepted in the United States of America; this includes the design, implementation, andmaintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are freefrom material misstatement, whether due to fraud or error.Auditors' ResponsibilityOur responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted ouraudits in accordance with auditing standards generally accepted in the United States of America. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free frommaterial misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financialstatements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of materialmisstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the Company's preparation and fair presentation of the consolidated financial statements inorder to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Company's internal control. Accordingly, we express no such opinion. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, aswell as evaluating the overall presentation of the consolidated financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.- 1 -OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial positionof SAIC General Motors Corp., Ltd. and its subsidiaries as of December 31, 2016 and 2015, and the results of their operationsand their cash flows for each of the three years in the period ended December 31, 2016, in accordance with accounting principlesgenerally accepted in the United States of America./s/ DELOITTE TOUCHE TOHMATSU CERTIFIED PUBLIC ACCOUNTANTS LLPDeloitte Touche Tohmatsu Certified Public Accountants LLPShanghai, People's Republic of ChinaJanuary 26, 2017- 2 -SAIC GENERAL MOTORS CORP., LTD. AND SUBSIDIARIESConsolidated Balance Sheets(Expressed in Renminbi)ASSETS December 31 2016 2015Current assets: Cash and cash equivalents (note 1(e))32,969,999,234 23,583,750,107 Trade accounts receivable, net of allowance for doubtful accounts of 32,695 and 1,762,790 for 2016 and 2015, respectively25,106,686 18,653,079 Due from related parties4,976,879,575 11,484,457,813 Inventories (note 2)6,491,168,127 5,767,903,628 Other current assets757,562,182 532,749,502 Total current assets45,220,715,804 41,387,514,129 Non-current assets: Equity in net assets of nonconsolidated affiliates (note 3)2,495,191,042 2,427,613,212 Prepaid land use rights (note 1 (n))3,649,300,686 3,732,362,617 Property, net (note 4)44,694,128,626 38,180,494,024 Intangible assets (note 5)3,036,097,282 3,170,622,312 Goodwill (note 1 (m))367,474,296 367,474,296 Deferred tax assets (note 7)3,802,682,764 2,507,632,536 Other non-current assets2,886,610 23,189,666 Total non-current assets58,047,761,306 50,409,388,663 Total assets103,268,477,110 91,796,902,792 (Continued) See accompanying notes to the consolidated financial statements.- 3 -SAIC GENERAL MOTORS CORP., LTD. AND SUBSIDIARIESConsolidated Balance Sheets(Expressed in Renminbi)LIABILITIES AND EQUITY December 31 2016 2015Current liabilities: Trade accounts payable34,887,034,846 29,803,717,918 Due to related parties14,422,958,592 10,826,457,662 Payroll payable3,779,258,642 3,363,424,411 Income taxes payable2,195,708,965 3,512,951,655 Dividends payable2,365,179,532 2,534,187,396Other current liabilities7,138,021,037 3,722,989,563 Total current liabilities64,788,161,614 53,763,728,605 Long-term liabilities: Accrued and other long-term liabilities1,196,972,083 188,234,059 Total liabilities65,985,133,697 53,951,962,664 Commitment and contingencies (note 9) Equity Statutory capital8,802,006,138 8,802,006,138 Additional paid-in capital1,174,131 1,174,131 Retained earnings22,880,427,650 23,338,020,279 Total SAIC General Motors Corp., Ltd.'s equity31,683,607,919 32,141,200,548Non-controlling interests5,599,735,494 5,703,739,580 Total equity37,283,343,413 37,844,940,128 Total liabilities and equity103,268,477,110 91,796,902,792 See accompanying notes to consolidated financial statements.- 4 -SAIC GENERAL MOTORS CORP., LTD AND SUBSIDIARIESConsolidated Statements of Income and Comprehensive Income(Expressed in Renminbi) Year ended December 31 2016 2015 2014 Net sales194,159,337,182 168,716,257,269 157,884,662,493 Cost of goods sold(162,257,106,888) (137,347,334,128) (129,155,500,543) Gross profit31,902,230,294 31,368,923,141 28,729,161,950 Selling, general and administrative expenses(7,982,381,467) (6,761,117,080) (7,122,923,845) Operating profit23,919,848,827 24,607,806,061 21,606,238,105 Interest income299,307,399 428,504,304 755,400,797Other income and expense, net(87,870,913) (124,957,109) 14,937,405 Income before income taxes and equity income24,131,285,313 24,911,353,256 22,376,576,307 Income tax expense (note 7)(5,684,376,621) (5,881,350,456) (5,136,447,549)Equity income, net of tax581,814,216 451,723,297 389,419,130 Net income and comprehensive income19,028,722,908 19,481,726,097 17,629,547,888 Net income and comprehensive income attributable to non-controlling interests(2,571,679,668) (3,061,024,429) (3,019,100,786) Net income and comprehensive income attributable to shareholders16,457,043,240 16,420,701,668 14,610,447,102 See accompanying notes to consolidated financial statements.- 5 -SAIC GENERAL MOTORS CORP., LTD AND SUBSIDIARIESConsolidated Statements of Equity(Expressed in Renminbi) Additional Statutory paid-in Retained Non-controlling Total capital capital earnings interests equity Balance at January 1, 2014 (Unaudited)8,802,006,138 1,174,131 17,913,428,077 6,288,646,124 33,005,254,470 Net Income and comprehensive income— — 14,610,447,102 3,019,100,786 17,629,547,888 Dividends Declared— — (11,506,551,711) (2,846,197,002) (14,352,748,713) Balance at December 31, 20148,802,006,138 1,174,131 21,017,323,468 6,461,549,908 36,282,053,645 Net Income and comprehensive income— — 16,420,701,668 3,061,024,429 19,481,726,097 Dividends Declared— — (14,100,004,857) (3,818,834,757) (17,918,839,614) Balance at December 31, 20158,802,006,138 1,174,131 23,338,020,279 5,703,739,580 37,844,940,128 Net Income and comprehensive income— — 16,457,043,240 2,571,679,668 19,028,722,908 Dividends Declared— — (16,914,635,869) (2,675,683,754) (19,590,319,623) Balance at December 31, 20168,802,006,138 1,174,131 22,880,427,650 5,599,735,494 37,283,343,413 See accompanying notes to consolidated financial statements.- 6 -SAIC GENERAL MOTORS CORP., LTD AND SUBSIDIARIESConsolidated Statements of Cash Flows(Expressed in Renminbi) Year ended December 31 2016 2015 2014 Cash flows from operating activities: Net income19,028,722,908 19,481,726,097 17,629,547,888 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation7,119,981,911 5,549,988,627 3,889,243,783Amortization643,036,694 153,542,616 213,867,004Benefit for deferred taxes(1,295,050,228) (261,643,536) (530,482,621)Decrease (increase) in trade and other receivables6,296,615,008 (11,205,018,641) 259,484,582Increase in inventories(723,264,499) (62,310,471) (1,838,408,783)Increase (decrease) in trade and other payables9,846,458,044 8,233,386,388 (599,753,710)Other operating activities(69,683,241) (355,053,347) (363,436,849) Net cash provided by operating activities40,846,816,597 21,534,617,733 18,660,061,294 - 7 -SAIC GENERAL MOTORS CORP., LTD AND SUBSIDIARIESConsolidated Statements of Cash Flows(Expressed in Renminbi) Year ended December 31 2016 2015 2014 Investing activities: Proceeds from sale of property27,206,685 11,660,085 14,556,229 Purchase of assets(11,722,472,518) (10,821,306,185) (10,703,711,804) Net cash used in investing activities(11,695,265,833) (10,809,646,100) (10,689,155,575) Financing activities: Short-term loans150,000,000 — — Dividends paid(19,759,327,487) (17,065,591,430) (13,906,333,328)Repayment of short-term loans(150,000,000) — — Payments on capital leases(5,974,150) (4,595,500) (5,055,100) Net cash used in financing activities(19,765,301,637) (17,070,186,930) (13,911,388,428) Net (decrease) / increase in cash and cash equivalents9,386,249,127 (6,345,215,297) (5,940,482,709) Cash and cash equivalents at the beginning of the year23,583,750,107 29,928,965,404 35,869,448,113 Cash and cash equivalents at the end of the year32,969,999,234 23,583,750,107 29,928,965,404 Supplemental information: Income taxes paid8,296,669,539 4,133,524,058 4,742,570,852 Non-cash investing activities: Increase in payables relating to purchase of assets2,363,953,070 542,110,845 3,576,790,216 See accompanying notes to consolidated financial statements.- 8 -SAIC GENERAL MOTORS CORP., LTD AND SUBSIDIARIESDecember 31, 2016, 2015 and 2014Notes to The Consolidated Financial Statements1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES(a)Description of BusinessSAIC General Motors Corp., Ltd. (the "Company") was established in Shanghai, People's Republic of China ("PRC")by SAIC Motor Corporation Limited ("SAIC") with General Motors China LLC (f.k.a General Motors China, Inc.) andGeneral Motors (China) Investment Corp., Ltd. as a Sino-foreign equity joint venture. The Company was established onMay 16, 1997 with an operating period of 30 years. The Company and subsidiaries are mainly engaged in themanufacturing and selling of vehicles, engines, transmissions, and their components and parts.As of December 31, 2016, the Company's subsidiaries include SAIC GM Dong Yue Motors Co., Ltd. ("DY"), SAICGM Dong Yue Powertrain Co., Ltd. ("PT") and SAIC GM (Shenyang) Norsom Motors Co., Ltd. ("Norsom").(b)Basis of PresentationThe consolidated financial statements have been prepared in accordance with accounting principles generally accepted inthe United States of America ("US GAAP").(c)Basis of consolidationThe consolidated financial statements include the accounts of the Company and its controlled subsidiaries. The Companyhas no involvement with variable interest entities. The Company's share of earnings or losses of nonconsolidated affiliatesis included in the consolidated operating results using the equity method of accounting when the Company is able toexercise significant influence over the operating and financial decisions of the affiliates. All intercompany balances andtransactions have been eliminated in consolidation.Details of the subsidiaries who are controlled by the Company and whose financial statements are consolidated are asfollows:Name of the entityOwnership percentageDate of acquisitionDY50%February 10, 2003PT50%March 7, 2004Norsom50%July 19, 2004(d)Use of estimatesThe consolidated financial statements are prepared in conformity with US GAAP, which require the use of estimates,judgments, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assetsand liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the periodspresented. The Company believes that the accounting estimates employed are appropriate and the resulting balances arereasonable; however, due to the inherent uncertainties in making estimates, actual results could differ from the originalestimates, requiring adjustments to these balances in future periods.- 9 -SAIC GENERAL MOTORS CORP., LTD AND SUBSIDIARIESDecember 31, 2016, 2015 and 2014Notes to The Consolidated Financial Statements1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES - continued(e)Cash and cash equivalentsCash and cash equivalents consist of cash on hand and in banks, and time deposits with financial institutions that areshort-term in nature and available at any time, and money market funds which are short-term and highly-liquidinvestments with original maturities of 90 days or less. The Company considers all highly liquid debt instruments withoriginal maturities of three months or less to be cash equivalents. The Company deposits most of its cash in PRC state-owned banks, Shanghai Automotive Industrial Group Finance Co., Ltd ("SAIC-Finance"), a SAIC related party andSAIC-GMAC Automotive Finance Co., Ltd. ("SAIC-GMAC"), an equity investment of the Company.(f)Inventories Inventories are stated at lower of cost or market. Market, which represents selling price less cost to sell, considers generalmarket and economic conditions, periodic reviews of current profitability of vehicles and the effect of current incentiveoffers at the balance sheet date. Productive material, work-in-process, supplies and service parts are reviewed todetermine if inventory quantities are in excess of forecasted usage, or if they have become obsolete.(g)Fair Value MeasurementsA 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 marketassumptions 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 in active markets; quoted prices for identical or similar instrumentsin markets that are not active; and model-derived valuations whose significant inputs are observable; and•Level 3 - Instruments whose significant inputs are unobservable.Financial instruments are transferred in and/or out of Level 1, 2 or 3 at the beginning of the accounting period in whichthere is a change in the valuation inputs.The Company believes the fair value of its financial instruments, principally cash and cash equivalents, trade accountsreceivable and trade accounts payable, approximate their recorded values due to the short-term nature of the instrumentsor interest rates, which are comparable with current rates.(h)Equity in net assets of nonconsolidated affiliatesNonconsolidated affiliates are entities in which an equity ownership interest is maintained and for which the equitymethod of accounting is used, due to the ability to exert significant influence over their operating and financial affairs.- 10 -SAIC GENERAL MOTORS CORP., LTD AND SUBSIDIARIESDecember 31, 2016, 2015 and 2014Notes to The Consolidated Financial Statements1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES - continued(i)Valuation of equity method investmentsWhen events and circumstances warrant, investments accounted for under the cost or equity method of accounting areevaluated for impairment. An impairment charge is recorded whenever a decline in value of an investment below itscarrying amount is determined to be other than temporary. In determining if a decline is other than temporary, factorssuch as the length of time and extent to which the fair value of the investment has been less than the carrying amount ofthe investment, the near-term and long-term operating and financial prospects of the affiliate and the intent and ability tohold the investment for a period of time sufficient to allow for any anticipated recovery are considered.No impairments were recognized for the years ended December 31, 2016, 2015 and 2014.(j)Property, netProperty, plant and equipment is recorded at cost. Major improvements that extend the useful life of property arecapitalized. Expenditures for repairs and maintenance are charged to expense as incurred.The Company's depreciation method is summarized in the following table:CategoryDepreciation methodEstimated useful lives BuildingsStraight-line25 yearsFurniture, fixtures and equipmentStraight-line3 to 5 yearsMachineryStraight-line5 to 20 yearsToolings other than non-powertrain toolsStraight-line5 yearsNon-powertrain special toolsAccelerated depreciation5 yearsThe Company assumes no salvage value on its computation of depreciation.The Company's policy is to review the estimated useful lives of property on an annual basis. Upon retirement or disposalof property, plant and equipment, the cost and related accumulated depreciation are removed from the accounts and anyresulting gain or loss is recognized in cost of sales.(k)Intangible assetsIntangible assets include technology licenses and are amortized on a straight-line basis over the shorter of the life oflicense or the planned life-cycle of the vehicles or products associated with the license, ranging from 45 months to 98months.- 11 -SAIC GENERAL MOTORS CORP., LTD AND SUBSIDIARIESDecember 31, 2016, 2015 and 2014Notes to The Consolidated Financial Statements1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES - continued(l)Impairment of long-lived assetsLong-lived assets and intangible assets subject to amortization are reviewed for impairment whenever events or changesin circumstances indicate that the carrying amount of an asset may not be recoverable. When events and circumstanceswarrant, the Company evaluates the carrying value of long-lived assets to be held and used in the business, other thangoodwill. If the carrying value of a long-lived asset group is considered impaired, a loss is recognized based on theamount by which the carrying value exceeds the fair value for assets to be held and used. Fair value is determinedprimarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Long-lived assets tobe disposed of other than by sale are considered held for use until disposition.(m)GoodwillGoodwill represents the excess of the cost of an acquisition over the fair value of net assets acquired. Goodwill andintangible assets acquired in a business combination that are determined to have an indefinite useful life are notamortized, but instead tested for impairment at least annually. The Company completes a two-step goodwill impairmenttest, on an annual basis as of December 31, or more frequently when events occur or circumstances change such that it isreasonably possible that impairment may exist. The first step of the impairment test requires the identification of ourreporting units and comparison of the fair value of each of these reporting units to their respective carrying value. The fairvalues of the reporting units are determined based on valuation techniques using the best information that is available,such as discounted cash flow projections. If the carrying value is less than the fair value, no impairment exists and thesecond step is not performed. If the carrying value is higher than the fair value, there is an indication that impairment mayexist and the second step must be performed to compute the amount of the impairment. In the second step, the impairmentis computed by estimating the fair values of all recognized and unrecognized assets and liabilities of the reporting unit andcomparing the implied fair value of the reporting unit's goodwill with the carrying amount of that unit's goodwill. Theannual impairment tests are performed in the fourth quarter of each year.No impairments were recognized in the years ended December 31, 2016, 2015 and 2014.(n)Prepaid land use rightsAll land in China is owned by the government, who, according to the laws, may sell the right to use the land for aspecified period of time. Prepaid land use rights are amortized on a straight-line method over the effective period of landuse rights.(o)Revenue recognitionAutomotive sales consist primarily of revenue generated from the sale of vehicles. Vehicle sales are recorded when titleand risks and rewards of ownership have passed to our customers.- 12 -SAIC GENERAL MOTORS CORP., LTD AND SUBSIDIARIESDecember 31, 2016, 2015 and 2014Notes to The Consolidated Financial Statements1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES - continued(p)Sales and Sales-Related TaxesThe Company collects and remits taxes assessed by different governmental authorities that are both imposed on andconcurrent with a revenue-producing transaction between the Company and its customers. These taxes mainly includethe consumption taxes of RMB 8,799,445,126, RMB 8,986,941,822 and RMB 9,450,509,601 for the years endedDecember 31, 2016, 2015 and 2014, respectively.(q)Research and development costsResearch and development costs are expensed when incurred. Expenditures for research activities relating to productdevelopment and improvement are charged to expense as incurred. Such expenditures amounted to RMB 5,152,768,659,RMB 3,771,754,277 and RMB 3,442,856,072 for the years ended December 31, 2016, 2015 and 2014, respectively.(r)Government grantsThe Company receives grants from the government mainly to support infrastructure construction and capitalexpenditures. Such grants are deferred and are generally refundable to the extent the Company does not utilize the fundsfor qualifying expenditures. Once earned, the Company records the grants as a contra amount to the assets and amortizessuch amount over the useful lives of the related assets as a reduction to depreciation expense. For grants received notrelating to infrastructure construction and capital expenditures, they are recorded as a reduction of expenses according tothe nature.(s)Income taxesThe Company uses the asset and liability method in accounting for income taxes. Deferred tax assets and liabilities arerecorded for temporary differences between the tax basis of assets and liabilities and their reported amounts in theconsolidated financial statements, using the statutory tax rates in effect for the year in which the differences are expectedto reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results ofoperations in the period that includes the enactment date under the law. A valuation allowance is recorded to reduce thecarrying amounts of deferred tax assets unless it is more likely than not that such asset will be realized. - 13 -SAIC GENERAL MOTORS CORP., LTD AND SUBSIDIARIESDecember 31, 2016, 2015 and 2014Notes to The Consolidated Financial Statements1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES - continued(t)Restricted reservesPursuant to laws applicable to entities incorporated in the PRC, the Company and its subsidiaries must makeappropriations from after-tax profit to a surplus reserve fund, enterprise expansion fund and staff welfare fund. Theamount allocated to each of these funds is at the discretion of the Company's board of directors. For the year endedDecember 31, 2016 and 2015, appropriation of 0.5%, 0.5% and 1% of after-tax profit has been made to surplus reservefund, enterprise expansion fund and staff welfare fund, respectively (2014: 1% for each fund). The surplus reserve fundcan only be used to increase the registered capital and eliminate future losses of the respective companies under PRCregulations. The enterprise expansion fund was RMB 1,578,174,536 and RMB 1,479,953,772 as of December 31, 2016and 2015 respectively, and the surplus reserve fund was RMB 1,587,500,609 and RMB 1,489,279,845 as of December31, 2016 and 2015 respectively. During the years ended December 31, 2016, 2015 and 2014, the Company contributedRMB 222,528,467, RMB 234,557,894 and RMB 206,506,851 to the staff welfare fund, all of which was recorded ingeneral and administrative expenses. In addition, due to the restrictions on the distribution of statutory capital from theCompany, statutory capital of RMB 8,802,006,138 at December 31, 2016 and 2015 is considered restricted.(u)Concentration of credit riskFinancial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash andcash equivalents and accounts receivable.The Company places cash and cash equivalents with financial institutions with high credit ratings and quality.The Company conducts credit evaluations of customers and generally does not require collateral or other security fromthe customers. The Company has no significant credit risk associated with accounts receivable.(v)Recently issued accounting standardsIn 2016 we adopted ASU 2015-17, "Balance Sheet Classification of Deferred Taxes", which is effective for annualreporting periods beginning on or after December 15, 2016, with early adoption permitted. ASU 2015-17 requires alldeferred tax assets and liabilities to be classified as non-current. Deferred tax assets amounted to RMB 1,004,934,862 asof December 31, 2015 were reclassified from current assets to non-current assets to conform to our current yearpresentation.In 2015 we adopted ASU 2015-02, "Amendments to the Consolidation Analysis", which is effective for annual reportingperiods beginning on or after December 15, 2015, with early adoption permitted. ASU 2015-02 requires us to reassesswhether certain entities should be consolidated. The adoption of ASU 2015-02 did not have a material impact on ourconsolidated financial statements.- 14 -SAIC GENERAL MOTORS CORP., LTD AND SUBSIDIARIESDecember 31, 2016, 2015 and 2014Notes to The Consolidated Financial Statements1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES - continued(w)Accounting Standards Not Yet AdoptedIn May 2014 the Financial Accounting Standards Board (FASB) issued ASU 2014-09, "Revenue from Contracts withCustomers" (ASU 2014-09), which requires us to recognize revenue when a customer obtains control rather than whenwe have transferred substantially all risks and rewards of a good or service and requires expanded disclosures. ASU2014-09, as amended, is effective for us beginning January 1, 2018. ASU 2014-09 will affect the amount and timing ofcertain revenue related transactions primarily resulting from the earlier recognition of certain sales incentives. Uponadoption of ASU 2014-09 sales incentives will be recorded at the time of sale rather than at the later of sale orannouncement. We continue to assess the overall impact the adoption of ASU 2014-09 will have on our consolidatedfinancial statements. We do not expect the adoption of ASU 2014-09 to be material to our consolidated financialstatements. We have not yet determined whether we will adopt the provisions of ASU 2014-09 on a retrospective basisor through a cumulative adjustments to equity.In February 2016 the FASB issued ASU 2016-02, "Leases", which requires the lessee to recognize most leases on thebalance sheet thereby resulting in the recognition of lease assets and liabilities for those leases currently classified asoperating leases. ASU 2016-02 is effective beginning after January 1, 2019 with early adoption permitted. While we arecurrently assessing the impact the adoption will have on our consolidated financial statements, we expect the primaryimpact to our consolidated financial position upon adoption will be the recognition, on a discounted basis, of ourminimum commitments under noncancelable operating leases on our consolidated balance sheets resulting in therecording of right of use assets and lease obligations. Our current minimum commitments under noncancelable operatingleases are disclosed in Note 9.2. INVENTORIESThe following table summarizes the components of inventory (in RMB). Balance at December 31 2016 2015 Productive material and supplies5,973,532,657 5,102,815,152Work in process and semi-products387,939,161 543,062,743Finished product, including service parts129,696,309 122,025,733 Total inventories6,491,168,127 5,767,903,6283. EQUITY IN NET ASSETS OF NONCONSOLIDATED AFFLIATESThe Company has direct ownership interests in SAIC-GMAC, Shanghai OnStar Telematics Company Limited ("ShanghaiOnStar") and Shanghai Chengxin Used Car Operation and Management Company Limited ("Chengxin") of 20%, 20% and33%, respectively, as of December 31, 2016 and 2015.- 15 -SAIC GENERAL MOTORS CORP., LTD AND SUBSIDIARIESDecember 31, 2016, 2015 and 2014Notes to The Consolidated Financial Statements4. PROPERTY, NETProperty, plant and equipmentThe following table summarizes the components of property, plant and equipment (in RMB). Balance at December 31 2016 2015 Buildings9,650,673,664 9,387,462,782Machinery38,219,094,896 31,164,652,691Furniture, fixtures and equipment1,563,361,481 1,393,592,627Tooling23,986,204,266 21,381,291,972Total73,419,334,307 63,327,000,072 Accumulated depreciation(37,397,585,652) (32,495,296,047) Subtotal36,021,748,655 30,831,704,025Construction in progress8,672,379,971 7,348,789,999 Total property, net44,694,128,626 38,180,494,024For the years ended December 31, 2016, 2015 and 2014, depreciation expense was RMB 7,119,981,911, RMB 5,549,988,627and RMB 3,889,243,783, of which about 96%, 98% and 95% were charged to cost of sales and 4%, 2% and 5% to selling,general and administrative expenses for the years ended December 31, 2016, 2015 and 2014, respectively.Capital leaseProperty, plant, and equipment include assets acquired under capital leases.At the end of December 31, 2016, the leased property had a gross value of RMB 53,600,269 and accumulated depreciation ofRMB 40,200,202. Future minimum lease payment under capital leases are as follows (In RMB):Year ended December 31: 20175,514,60020185,514,60020195,514,60020205,514,60020215,514,60020221,378,640Total minimum lease payments28,951,640Unrecognised finance costs(5,633,395)Finance lease payables23,318,245Comprising: Finance lease payments due within one year3,729,633Finance lease payments due after one year19,588,612- 16 -SAIC GENERAL MOTORS CORP., LTD AND SUBSIDIARIESDecember 31, 2016, 2015 and 2014Notes to The Consolidated Financial Statements5. INTANGIBLE ASSETSIntangible assets include technology license fees, summarized as follows (in RMB). Balance at December 31 2016 2015Technology license fee - gross5,172,428,910 4,746,979,177Accumulated amortization(2,136,331,628) (1,576,356,865)Technology license fee - net3,036,097,282 3,170,622,3126. FAIR VALUE MEASUREMENTFair value measurements on a recurring basisThe Company measures money market fund at fair value on a recurring basis using quoted prices in active markets for identicalassets (Level 1). The carrying amounts are RMB 1,976,000,426 and RMB 1,492,894,524 as of December 31, 2016 and 2015respectively, which approximates its fair values.7. INCOME TAXIncome tax expense is summarized as follows (in RMB): Year ended December 31 2016 2015 2014Current tax expense6,979,426,849 6,142,993,992 5,666,930,170Deferred tax expense (benefit)(1,295,050,228) (261,643,536) (530,482,621)Total income tax expense5,684,376,621 5,881,350,456 5,136,447,549A reconciliation of the provision for income taxes with amounts determined by applying the statutory income tax rate to incomebefore income tax is as follows (in RMB):- 17 -SAIC GENERAL MOTORS CORP., LTD AND SUBSIDIARIESDecember 31, 2016, 2015 and 2014Notes to The Consolidated Financial Statements7. INCOME TAX - continued Year ended December 31 2016 2015 2014Statutory income tax rate25% 25% 25%Computed tax at the statutory tax rate6,178,274,882 6,340,769,138 5,691,498,859Effect of expenses that are not deductible for tax purposes96,793,763 71,679,519 53,734,139Effect of non-taxable income(153,699,248) (123,514,282) (107,605,649)Effect of expenses adjustable for tax purpose(436,992,776) (407,583,919) (501,179,800) Income tax expense5,684,376,621 5,881,350,456 5,136,447,549 Effective income tax rate23% 23% 23%Significant components of the Company's deferred tax assets and liabilities are as follows (in RMB): Balance at December 31 2016 2015Deferred tax assets: Provision for impairment loss on property and depreciation difference1,410,407,444 1,224,652,401Accrued expense and estimated liabilities2,094,891,305 991,038,099Provision for decline in value of inventories and accounts receivable33,735,945 35,732,236Others263,834,855 256,708,529Subtotal3,802,869,549 2,508,131,265 Deferred tax liabilities:(186,785) (498,729) Net deferred tax assets3,802,682,764 2,507,632,5368. RELATED PARTY TRANSACTIONS AND BALANCESSales to affiliates amounted to RMB 193,939,189,688, RMB 168,477,769,109 and RMB 157,556,930,214 for the years endedDecember 31, 2016, 2015 and 2014, respectively. Interest income from affiliates amounted to RMB 57,763,725, RMB152,427,022 and RMB 258,420,591 for the years ended December 31, 2016, 2015 and 2014, respectively.- 18 -SAIC GENERAL MOTORS CORP., LTD AND SUBSIDIARIESDecember 31, 2016, 2015 and 2014Notes to The Consolidated Financial Statements9. COMMITMENTS AND CONTINGENCIESa) Lease commitmentsFuture minimum lease payments under non-cancelable operating lease as of December 31, 2016 are (RMB in thousands):Within one year22,450After one year158,511Total minimum lease payments180,961b) Capital commitmentsAs of December 31, 2016, the Company has entered into various firm purchase commitments for the acquisition of long-livedassets, which have not been recognized in the financial statements, totalling RMB 10,144,068,000 (2015: RMB13,246,787,000).* * * * *- 19 -

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