General Motors
Annual Report 2017

Plain-text annual report

UNITED 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, 2017OR¨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) 667-1500Securities registered pursuant to Section 12(b) of the Act:Title of each className of each exchange on which registeredCommon StockNew York 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 RegulationS-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. þIndicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large acceleratedfiler,” “accelerated filer”, “small reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.Large accelerated filer þ Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company ¨ Emerging growth company ¨(Do not check if a smaller reporting company)If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant toSection 13(a) of the Exchange Act. ¨Indicate 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 $51.2billion as of June 30, 2017.As of January 30, 2018 the number of shares outstanding of common stock was 1,402,630,363 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.Business 1Item 1A.Risk Factors 10Item 1B.Unresolved Staff Comments 16Item 2.Properties 16Item 3.Legal Proceedings 16Item 4.Mine Safety Disclosures 16PART IIItem 5.Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 17Item 6.Selected Financial Data 17Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations 18Item 7A.Quantitative and Qualitative Disclosures About Market Risk 41Item 8.Financial Statements and Supplementary Data 46 Consolidated Income Statements 46 Consolidated Statements of Comprehensive Income 46 Consolidated Balance Sheets 47 Consolidated Statements of Cash Flows 48 Consolidated Statements of Equity 49 Notes to Consolidated Financial Statements 50 Note 1.Nature of Operations and Basis of Presentation 50 Note 2.Significant Accounting Policies 50 Note 3.Discontinued Operations 57 Note 4.Marketable Securities 59 Note 5.GM Financial Receivables 61 Note 6.Inventories 62 Note 7.Equipment on Operating Leases 62 Note 8.Equity in Net Assets of Nonconsolidated Affiliates 63 Note 9.Property 64 Note 10.Acquisition of Business 65 Note 11.Goodwill and Intangible Assets 65 Note 12.Variable Interest Entities 66 Note 13.Accrued and Other Liabilities 66 Note 14.Automotive and GM Financial Debt 67 Note 15.Derivative Financial Instruments 69 Note 16.Pensions and Other Postretirement Benefits 70 Note 17.Commitments and Contingencies 71 Note 18.Income Taxes 76 Note 19.Restructuring and Other Initiatives 79 Note 20.Stockholders’ Equity and Noncontrolling Interests 80 Note 21.Earnings Per Share 81 Note 22.Stock Incentive Plans 81 Note 23.Supplementary Quarterly Financial Information (Unaudited) 82 Note 24.Segment Reporting 83 Note 25.Supplemental Information for the Consolidated Statements of Cash Flows 86 PageItem 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 86Item 9A.Controls and Procedures 86Item 9B.Other Information 87PART IIIItem 10.Directors, Executive Officers and Corporate Governance 88Item 11.Executive Compensation 88Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 88Item 13.Certain Relationships and Related Transactions and Director Independence 88Item 14.Principal Accountant Fees and Services 88PART IVItem 15.Exhibits 89Item 16.Form 10-K Summary 91Signatures 92Table 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.On July 31, 2017 we closed the sale of the Opel and Vauxhall businesses and certain other assets in Europe (the Opel/Vauxhall Business) to Peugeot, S.A.(PSA Group). On October 31, 2017 we closed the sale of the European financing subsidiaries and branches (the Fincos, and together with the Opel/VauxhallBusiness, the European Business) to Banque PSA Finance S.A. and BNP Paribas Personal Finance S.A. The European Business was previously reported as ourGM Europe (GME) segment and part of GM Financial. The European Business is presented as discontinued operations in our consolidated financialstatements for all periods presented. The assets and liabilities of the European Business are presented as held for sale in our consolidated financial statementsas of December 31, 2016. Unless otherwise indicated, information in this report relates to our continuing operations.Segment Reporting Data During the three months ended December 31, 2017, we changed our automotive segments as a result of changes in ourorganizational structure and the evolution of our business resulting from the sale of the Opel/Vauxhall Business and the various strategic actions taken in theGM International Operations (GMIO) region. As a result, our GM South America (GMSA) and GMIO operating segments are now reported as one, combinedreportable international segment, GM International (GMI). Our GM North America (GMNA) and GM Financial segments were not impacted. All periodspresented have been recast to reflect the changes. Operating segment data and principal geographic area data for the years ended December 31, 2017, 2016and 2015 are summarized in Note 24 to our consolidated financial statements.Automotive Our automotive operations meet the demands of our customers through our automotive segments: GMNA and GMI. GMNA meets the demandsof customers in North America with vehicles developed, manufactured and/or marketed under the Buick, Cadillac, Chevrolet and GMC brands. GMIprimarily meets the demands of customers outside North America with vehicles developed, manufactured and/or marketed under the Buick, Cadillac,Chevrolet, GMC and Holden brands. We also have equity ownership stakes in entities that meet the demands of customers in other countries, primarily inChina, with vehicles developed, manufactured and/or marketed under the Baojun, Buick, Cadillac, Chevrolet, Jiefang and Wuling 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, whichrepresents sales directly to dealers and others, including sales to fleet customers, is the measure that correlates to our revenue from the sale of vehicles, whichis the largest component of Automotive net sales and revenue. Wholesale vehicle sales exclude vehicles sold by joint ventures. In the year ended December31, 2017 39% of our wholesale vehicle sales volume was generated outside the U.S. The following table summarizes total wholesale vehicle sales of newvehicles by automotive segment (vehicles in thousands): Years Ended December 31, 201720162015GMNA(a)3,51173.5%3,95875.9%3,55872.2%GMI(b)1,26726.5%1,25524.1%1,37227.8%Total4,778100.0%5,213100.0%4,930100.0% Discontinued operations696 1,199 1,140 __________(a)Wholesale vehicle sales related to transactions with the European Business were insignificant for the years ended December 31, 2017, 2016 and 2015.1Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES(b)Wholesale vehicle sales include 131, 128 and 181 vehicles related to the transactions with the European Business for the years ended December 31, 2017, 2016 and 2015.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 channel,primarily 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): Years Ended December 31, 201720162015 IndustryGMMarketShareIndustryGMMarketShareIndustryGMMarketShareNorth AmericaUnited States17,5673,00217.1%17,8863,04317.0%17,8643,08217.3%Other3,98157414.4%3,99358714.7%3,66653014.5%Total North America(a)21,5483,57616.6%21,8793,63016.6%21,5303,61216.8%Asia/Pacific, Middle East and AfricaChina(b)28,2504,04114.3%28,2743,91413.8%25,0503,73014.9%Other(c)21,0676293.0%20,5997203.5%21,3918994.2%Total Asia/Pacific, Middle East andAfrica(a)49,3174,6709.5%48,8734,6349.5%46,4414,62910.0%South AmericaBrazil2,23939417.6%2,05034616.9%2,56838815.1%Other1,92727514.3%1,62323714.6%1,61925715.9%Total South America(a)4,16666916.1%3,67358315.9%4,18764515.4%Total in GM markets75,0318,91511.9%74,4258,84711.9%72,1588,88612.3%Total Europe19,1496853.6%18,6201,1616.2%17,4631,0996.3%Total Worldwide(d)94,1809,60010.2%93,04510,00810.8%89,6219,98511.1%United StatesCars6,14570911.5%6,89789012.9%7,47593112.5%Trucks5,0391,32826.4%4,9111,32527.0%4,6751,27427.2%Crossovers6,38396515.1%6,07882813.6%5,71487715.4%Total United States17,5673,00217.1%17,8863,04317.0%17,8643,08217.3%China(b)SGMS1,9061,8061,711SGMW and FAW-GM2,1352,1082,019Total China28,2504,04114.3%28,2743,91413.8%25,0503,73014.9%__________(a)Sales of Opel/Vauxhall outside of Europe were insignificant in the years ended December 31, 2017, 2016 and 2015.2Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES(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). In the three months ended March 31, 2017 we began using estimated vehicle registrations data as the basis for calculatingindustry volume and market share in China. In the years ended December 31, 2016 and 2015 wholesale volumes were used for Industry, GM and Market Share. Our retailsales in China were 3,871 and 3,613 in the years ended December 31, 2016 and 2015.(c)Includes Industry and GM sales in India and South Africa. As of December 31, 2017 we have ceased sales of Chevrolet for the domestic markets in India and South Africa.(d)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, 2017 we estimate we had the largest market share in North America and South America, and the number three market sharein the Asia/Pacific, Middle East and Africa region, which included the number two market share in China. Refer to the Overview in Management's Discussionand Analysis of Financial Condition and Results of Operations (MD&A) for discussion on changes in market share by region.The 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, 2017 2016 2015GMNA691707795GMI541527468Total fleet sales1,2321,2341,263 Fleet sales as a percentage of total retail vehicle sales13.8%13.9%14.2%The following table summarizes United States fleet sales (vehicles in thousands): Years Ended December 31, 2017 2016 2015Daily rental sales282 327 400Other fleet sales296 269 278Total fleet sales578 596 678Product 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 upon the level of competition in the markets in which we operate and the level of demand for ourproducts.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 in part on general economic conditions, credit availability and consumer spending.Relationship with Dealers We market vehicles and automotive parts worldwide primarily through a network of independent authorized retail dealers.These outlets include distributors, dealers and authorized sales, service and parts outlets.The following table summarizes the number of authorized dealerships: December 31, 2017 December 31, 2016 December 31, 2015GMNA4,809 4,857 4,886GMI7,641 8,598 9,177Total12,450 13,455 14,0633Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESWe 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 approved location. Our dealers often offer more than one GM brand ata single dealership in a number of our markets. Authorized dealers offer parts, accessories, service and repairs for GM vehicles in the product lines that theysell using GM parts and accessories. Our dealers are authorized to service GM vehicles under our limited warranty program and those repairs are made onlywith GM parts. Our dealers generally provide their customers with access to credit or lease financing, vehicle insurance and extended service contractsprovided by GM Financial and other financial institutions.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 and regulations that may supersede those contractual terms and impose specific regulatory requirements and standards for initiatingdealer network changes, 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 and greenhouse gas (GHG) emissions control, improved fuel economy, electrification, autonomous vehicles, the safety of drivers and passengers, andurban mobility. Research and development expenses were $7.3 billion, $6.6 billion and $6.0 billion in the years ended December 31, 2017, 2016 and 2015.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 Systems and Purchasing & Supply Chain collaborate to meet customer requirements and maximize global economies of scale.Our global vehicle architecture development is headquartered at our Global Technical Center in Warren, Michigan. Cross-segment part sharing is anessential enabler to our Vehicle Set Strategy, designed to reduce our overall number of global vehicle architectures to four major vehicle sets. As weimplement the four vehicle sets, we will continue to leverage our current architecture portfolio to accommodate our customers around the world whileachieving 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 zero emission battery electric vehicles that are part of our long-term strategyto reduce petroleum consumption and GHG emissions. We currently offer seven models in the U.S. featuring some form of electrification and continue todevelop plug-in hybrid electric vehicle technology and extended range electric vehicles such as the Chevrolet Volt and Bolt EV. In October 2017 weannounced our plans to launch more than 20 new Zero Emission Vehicles (ZEVs) in global markets by 2023, including two in the next 18 months.Car- and Ride-Sharing Our car-sharing brand Maven gives customers access to highly personalized, on-demand mobility services. Maven is available in18 cities across the U.S. and Canada and has started first pilot operations in Australia. Maven offers three different types of consumer and commercialservices. Maven Gig allows members to earn money on their own terms by providing a vehicle that can be used to deliver goods or ride-sharing servicesprovided by Lyft, Inc. (Lyft) and Uber Technologies Inc. Maven City offers vehicles with dedicated parking spots for easy city driving with the cost of gas orelectric charging included. Vehicles are available by the hour, day, week or month. Maven Home provides on-site car sharing for residentialcommunities. Through December 31, 2017 Maven has accumulated over 230 million miles driven, 5 million all-electric miles driven, 114,000reservations and has 104,000 members.Autonomous Technology We see autonomous technology leading to a future of zero congestion, zero emissions and zero crashes, since more than 90% ofcrashes are caused by driver error, according to the National Highway Traffic Safety Administration (NHTSA). We are among the leaders in the industry withsignificant global real-world experience in delivering connectivity, safety and security services to millions of customers through OnStar, LLC (OnStar) andadvanced safety features that are the building blocks to more advanced automation features that are driving our leadership position in the development ofautonomous technology. An example of advanced automation is Super Cruise, a hands-free driving customer convenience feature that is available on the2018 Cadillac CT6 sedan.We are actively testing autonomous vehicles on public roads in San Francisco, California; Scottsdale, Arizona; and Warren, Michigan. Additionally, weplan to develop an integrated network of on-demand autonomous vehicles in the U.S. In November4Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES2017 we announced that our growing fleet of test vehicles will accumulate a significant number of miles in 2018, and based on our current rate of change weexpect commercial launch at scale in dense urban environments in 2019.Alternative Fuel Vehicles We believe alternative fuels offer significant potential to reduce petroleum consumption and resulting GHG emissions in thetransportation sector. By leveraging experience and capability developed around these technologies in our global operations we continue to developFlexFuel vehicles that can run on ethanol-gasoline blend fuels as well as technologies that support compressed natural gas and liquefied petroleum gas.We offer a variety of FlexFuel vehicles in the U.S. for the 2018 model year to retail and commercial customers capable of operating on gasoline, E85ethanol or any combination of the two. In Brazil, a substantial majority of vehicles sold are FlexFuel vehicles capable of running on high ethanol blends. Wealso market FlexFuel vehicles in other global markets where biofuels are in the marketplace. We support the development of biodiesel blend fuels, which arealternative diesel fuels produced from renewable sources.Hydrogen Fuel Cell Technology Another part of our long-term strategy to reduce petroleum consumption and GHG emissions is our commitment to thedevelopment 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. These programs are helping us identify consumer and infrastructure needs to understand thebusiness case for potential production of vehicles with this technology. We are exploring 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 and established a nonconsolidated JV with Honda Motor Company in 2016 for a next-generation fuel cell systemand hydrogen storage technologies, aiming for the 2020 timeframe for commercialization. The collaboration expects to succeed by sharing expertise,economies of scale and common sourcing strategies and builds upon GM's and Honda Motor Company's strengths as leaders in hydrogen fuel celltechnology.OnStar OnStar is a wholly-owned subsidiary of GM serving more than 7 million subscribers. OnStar is a provider of connected safety, security and mobilitysolutions and advanced information technology and is available on the majority of our 2018 model year vehicles. OnStar's key services include automaticcrash response, stolen vehicle assistance, remote door unlock, turn-by-turn navigation, vehicle diagnostics, hands-free calling and 4G LTE wirelessconnectivity.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 purchases from our two largest suppliers have been approximately 12% of our total purchasesin each of the years ended December 31, 2017, 2016 and 2015.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 other in-use compliance monitoring activities may increasewarranty costs and the likelihood of recall. Emission and OBD requirements have become more stringent as a result of lower emission standards and newdiagnostic requirements which have come into force in many markets around the world driven by policy priorities such as air quality, energy security andclimate change, often with very little harmonization of the regulations. While we believe all of our products are designed and manufactured5Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESin material compliance with substantially all vehicle emissions requirements, regulatory authorities may conduct ongoing evaluations of the emissionscompliance of products from all manufacturers. This includes vehicle emissions testing, including CO2 and nitrogen oxide emissions testing, and review ofemission control designs and strategies.The U.S. federal government imposes stringent emission control requirements on vehicles sold in the U.S., and various state governments imposeadditional emission requirements established by California. Canada’s federal government vehicle emission requirements are generally aligned with the U.S.federal requirements. Each model year we must obtain certification for each test group that our vehicles will meet emission requirements from the U.S.Environmental Protection Agency (EPA) before we can sell vehicles in the U.S. and Canada, and from the California Air Resources Board (CARB) before wecan sell vehicles in California and other states that have adopted 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 GHG as well ascriteria pollutant emission reductions to help achieve the state's long-term GHG reduction goals. The Canadian Province of Quebec also plans to adopt ZEVrequirements starting with the 2018 model year largely based on California program requirements. There is a possibility that additional jurisdictions couldadopt ZEV requirements in the future. The EPA has adopted similar exhaust emission and evaporative emission standards which began a multi-year phase-inwith the 2017 model year, but do not include ZEV requirements. These new requirements will also increase the time and mileage periods over whichmanufacturers 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 emission standards in lieu of the federalrequirements. Thirteen states currently have these standards in effect and 10 of these 13 states have adopted the ZEV requirements.China implemented the China 5 emission standard nationwide at the beginning of 2017. China 5 is more stringent than the previous program on all levelsincluding overall emission requirements and the time and mileage period for which vehicles need to meet China 5 level performance. China will implement aunique China 6 emission standard that combines elements of both European and U.S. standards, includes more stringent emission requirements and increasesthe time and mileage periods over which manufacturers are responsible for a vehicle's emission performance. Nationwide implementation for newregistrations is expected in July 2020 for China 6a and July 2023 for the more stringent China 6b standard. However, localities can pull ahead China 6requirements if certain criteria are met. Some cities may implement China 6 as early as January 2019.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.As a result of the sale of the Opel/Vauxhall Business, GM’s vehicle presence in Europe will be smaller, but GM may be affected by actions taken byregulators related to products sold before the sale of the Opel/Vauxhall Business and future products sold by GM in Europe. For example, in Germany, anumber of automotive manufacturers, including our former German subsidiary, have participated in continuing discussions with German and European Unionauthorities concerning emissions control systems. In the European Union, increased scrutiny of compliance with emissions standards may result in changes tothese standards, including implementation of “real world driving” emissions (RDE) tests, as well as stricter interpretations or redefinition of these standardsand more rigorous enforcement. This may lead to increased costs, penalties, and lack of certainty related to product portfolio planning, negative publicity orreputation impact for us. In the long-term, we expect that the European Commission will continue devising regulatory requirements on the emission testcycle, RDE, low temperature testing, fuel evaporation and OBD.Automotive Fuel Economy In the U.S., NHTSA promulgates and enforces Corporate Average Fuel Economy (CAFE) standards for three separate fleets:domestically produced cars, imported cars and light-duty trucks. Manufacturers are subject to substantial civil penalties if they fail to meet the applicableCAFE standard in any model year, after taking into account all available credits for the preceding five model years and expected credits for the threesucceeding model years. In addition to federal CAFE reporting, the EPA promulgates and enforces GHG emission standards, which are effectively fueleconomy standards because the majority of vehicle GHG emissions are the result of fuel combustion. In addition, CARB has asserted the right to promulgateand enforce its own state GHG standards for motor vehicles, and other states have asserted the right to adopt the California standards. However, CARB hasagreed that compliance with the federal EPA light duty GHG program is deemed to be in compliance with the California standards through the 2025 modelyear.6Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESChina has two fuel economy requirements for passenger vehicles: an individual vehicle pass-fail type approval requirement and a fleet average fuelconsumption requirement. The current China Phase 4 fleet fuel consumption requirement is effective from 2016-2020. China Phase 4 is based on curb weightwith full compliance to 5.0L/100 km required by 2020. China Phase 4 has continued subsidies for plug-in hybrid, battery electric and fuel cell vehicles.China Phase 5 is currently being developed with a planned start in 2021 with full compliance to 4.0L/100km required by 2025. China recently announcedthe details of the New Energy Vehicle Mandate. This will require passenger car manufacturers to produce a certain volume of plug-in hybrid, battery electricand fuel cells vehicles to generate "credits" equivalent to 10% in 2019 and 12% in 2020. The number of credits per car is based on the level of E-range andenergy efficiency.Regulators in other jurisdictions have already adopted or are developing fuel economy or carbon dioxide regulations. If regulators in these jurisdictionsseek to impose and enforce emission standards that are misaligned with market conditions, we may be forced to take various actions to increase marketsupport programs for more fuel-efficient vehicles and curtail production of certain high-performance cars, trucks and sport utility vehicles (SUVs) in order toachieve compliance. We regularly evaluate our current and future product plans and strategies for compliance with fuel economy and GHG regulations.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 of our worldwide operations on the environment, we are converting as many of our worldwide operations as possible to landfill-freeoperations which reduces GHG emissions associated with waste disposal. At December 31, 2017, 80 (or approximately 50%) of our manufacturing operationswere landfill-free. Additionally, 63 of our non-manufacturing operations are landfill-free. At our landfill-free manufacturing operations approximately 95% ofwaste materials are composted, reused, or recycled and approximately 4% are converted to energy at waste-to-energy facilities. In 2017 we estimate that ourwaste reduction program diverted 1.5 million metric tons of waste from landfill, resulting in approximately 6.6 million metric tons of GHG emissions avoidedin global manufacturing operations, including construction, demolition and remediation wastes.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, 2017 we hadimplemented projects or signed renewable energy contracts globally that had increased our total renewable energy capacity to over 400 megawatts. In 2017GM executed two 100 megawatt wind power purchase agreements to match our Ohio and Indiana manufacturing plant load when each of these projects comeonline in 2018. We continue to seek opportunities for a diversified renewable energy portfolio including wind, solar, and landfill gas. In 2017 Energy Starcertified three of our assembly plants and 17 buildings for superior energy management. We also met the EPA Energy Star Challenge for Industry (EPAChallenge) at eight additional sites globally by reducing energy intensity an average of 18% at these sites. To meet the EPA Challenge, industrial sites mustreduce energy intensity by 10% within a five year period. In total 71 GM-owned sites have met the EPA Challenge, with many sites achieving the goalmultiple times. These efforts minimize our utility expenses and are part of our approach to addressing climate change through setting a GHG emissionsreduction target, collecting accurate data, following our business 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.Globally, governmental agencies continue to introduce new legislation and regulations related to the selection and use of chemicals by mandating broadprohibitions or restrictions and implementing green chemistry, life cycle analysis and product stewardship initiatives. These initiatives give broad regulatoryauthority to ban or restrict the use of certain chemical substances and potentially affect automobile manufacturers' responsibilities for vehicle components atthe end of a vehicle's life, as well as chemical selection for product development and manufacturing. Global treaties and initiatives such as the Stockholm,Basel and Rotterdam Conventions on Chemicals and Waste and the Minamata Convention on Mercury, are driving chemical regulations across signatorycountries. In addition, more global jurisdictions are establishing substance standards with regard to Vehicle Interior Air Quality.7Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESChemical regulations are increasing in North America. In June 2016, the U.S. enacted the Chemical Safety for the 21st Century Act that grants the EPAincreased authority to regulate and restrict chemical use in the U.S. and is expected to increase the level of regulation of chemicals in vehicles. Chemicalrestrictions in Canada continue to progress rapidly as a result of Environment Canada's Chemical Management Plan to assess existing substances andimplement risk management controls on any chemical deemed toxic.China prohibits the use of several chemical substances in vehicles. There are also various regulations in China stipulating the requirements for chemicalmanagement. Among other things, these regulations catalogue and restrict the use and the import and export of various chemical substances. The failure ofour joint venture partners or our suppliers to comply with these regulations could disrupt production in China or prevent our joint venture partners fromselling the affected products in the China market.These emerging regulations will potentially lead to increases in costs and supply chain complexity. We believe that we are materially in compliance withsubstantially all of these requirements or expect to be materially in compliance by the required dates.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 NHTSA. If we or NHTSA determine that either a vehicle or vehicle equipment does notcomply with a safety standard or if a vehicle defect creates an unreasonable safety risk the manufacturer is required to notify owners and provide a remedy.We are required to report certain information relating to certain customer complaints, warranty claims, field reports and notices and claims involving propertydamage, injuries and fatalities in the U.S. and claims involving fatalities outside the U.S. We are also required to report certain information concerning safetyrecalls and other safety campaigns outside the U.S.Outside 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, 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 and dealer loans, which are loans to finance improvements to dealership facilities, to provide workingcapital, and to purchase and/or finance dealership real estate. Other commercial products include financing for parts and accessories, dealer fleets and storagecenters.In North America GM Financial's retail automobile finance programs include full credit spectrum lending and leasing. The sub-prime lending program isprimarily offered to consumers with FICO scores less than 620 who have limited access to automobile financing through banks and credit unions and isexpected to sustain a higher level of credit losses than prime lending. The leasing product is offered through our franchised dealers and primarily targetsprime consumers leasing new vehicles. GM Financial has expanded its leasing and prime lending programs through our franchised 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 financing new GM vehicles and select used vehicles.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.Employees At December 31, 2017 we employed 103,000 (57%) hourly employees and 77,000 (43%) salaried employees. At December 31, 2017 51,000(50%) 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):8Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES December 31, 2017GMNA124GMI47GM Financial9Total Worldwide180 U.S. - Salaried52U.S. - Hourly51Executive Officers of the Registrant As of February 6, 2018 the names and ages of our executive officers and their positions with GM are as follows:Name (Age) Present GM Position (Effective Date) Positions Held During the Past Five Years (Effective Date)Mary T. Barra (56) Chairman and Chief Executive Officer (2016) Chief Executive Officer and Member of the Board of Directors (2014)Executive Vice President, Global Product Development, Purchasing & Supply Chain(2013)Daniel Ammann (45) President (2014) Executive Vice President and Chief Financial Officer (2013)Alan S. Batey (54) Executive Vice President and President,North America (2014) Senior Vice President, Global Chevrolet and Brand Chief and U.S. Sales andMarketing (2013)Alicia Boler-Davis (48) 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 (57) Executive Vice President and President,Cadillac (2014) Infiniti Motor Company, President (2012)Barry L. Engle (54) Executive Vice President and President, GMInternational (2018) Executive Vice President and President, South America (2015)Agility Fuel Systems, CEO (2011)Craig B. Glidden (60) Executive Vice President and GeneralCounsel (2015) LyondellBasell, Executive Vice President and Chief Legal Officer (2009)Mark L. Reuss (54) Executive Vice President, Global ProductDevelopment, Purchasing & Supply Chain(2014) Executive Vice President and President, North America (2013)Charles K. Stevens III (58) Executive Vice President and Chief FinancialOfficer (2014) Chief Financial Officer, GM North America (2010)Interim Chief Financial Officer, GM South America (2011)Matthew Tsien (57) Executive Vice President and President, GMChina (2014) GM Consolidated International Operations Vice President, Planning, ProgramManagement & Strategic Alliances China (2012)Thomas S. Timko (49) Vice President, Global Business Solutionsand Chief Accounting Officer (2017) Vice President, Controller and Chief Accounting Officer (2013)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.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 this2017 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, as we frequently update and post new information about our company on our website and it is possible that thisinformation could be deemed to be material information. Our website and information included in or linked to our website are not part of this 2017 Form 10-K.9Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESOur 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 have listed below (not necessarily in order of importance or probability of occurrence) the most significant risk factors applicable to us: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. Industry participants are seeking to disruptthe historic business model of the industry through the introduction of new technologies, new products or services, new business models or new methods oftravel. It is strategically significant that we lead the technological disruption occurring in our industry. To successfully execute our long-term strategy, wemust continue to develop new products and services, including products and services that are outside of our historically core business, such as autonomousand electric vehicles, data monetization and transportation as a service. The process of designing and developing new technology, products and services iscomplex, costly, and uncertain and requires extensive capital investment and the ability to retain and recruit talent. In some cases the technologies that weplan to employ are not yet commercially practical and depend on significant future technological advances by us and by our suppliers. There can be noassurance that advances in technology will occur in a timely or feasible way, or that others will not acquire similar or superior technologies sooner than we door that we will acquire technologies on an exclusive basis or at a significant price advantage. If we do not accurately predict, prepare for and respond to newkinds of technological innovations, market developments and changing customer needs, our sales, profitability and long-term competitiveness may beharmed.Our ability to maintain profitability is dependent upon our ability to timely fund and introduce new and improved vehicle models that are able to attracta sufficient number of consumers. We operate in a very competitive industry with market participants routinely introducing new and improved vehiclemodels designed to meet rapidly evolving consumer expectations. Producing new and improved vehicle models competitively and preserving our reputationfor designing, building and selling safe high quality cars and trucks is critical to our long-term profitability. Successful launches of our new vehicles arecritical to our short-term profitability.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 quality, safety, reliability and styling demands andpreferences, an initial product concept or design may not result in a vehicle that generates sales in sufficient quantities and at high enough prices to beprofitable. Our high proportion of fixed costs, both due to our significant investment in property, plant and equipment as well as other requirements of ourcollective bargaining agreements, which limit our flexibility to adjust personnel costs to changes in demands for our products, may further exacerbate therisks associated with incorrectly assessing demand for our vehicles.Our profitability is dependent upon the success of crossovers, SUVs and full-size pick-up trucks. While we offer a balanced and complete portfolio ofsmall, mid-size and large cars, crossovers, SUVs and trucks, we generally recognize higher profit margins on our crossovers, SUVs and trucks. Our success isdependent upon our ability to sell higher margin vehicles in sufficient volumes. Any shift in consumer preferences toward smaller, more fuel efficientvehicles, whether as a result of increases in the price of oil or any sustained shortage of oil, including as a result of global political instability or other reasons,could weaken the demand for our higher margin vehicles.We must successfully address and reduce the costs associated with the manufacture and sale of electric vehicles. We anticipate that electric vehicle saleswill become increasingly important to our business. The inability to reduce the costs associated with the manufacture and sale of electric vehicles maynegatively impact our earnings and financial condition. In addition, we currently10Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESbenefit from certain government and economic incentives supporting the development and adoption of electric vehicles. The benefits from these incentivescould be reduced, eliminated or exhausted, which may negatively affect our ability to sell electric vehicles in sufficient quantities and at high enough pricesto be profitable.Our business is highly dependent upon global automobile market sales volume, which can be volatile. Because we have a high proportion of relativelyfixed structural costs, small changes in sales volume can have a disproportionately large effect on our profitability. A number of economic and marketconditions drive changes in vehicle sales, including real estate values, levels of unemployment, availability of affordable financing, fluctuations in the costof fuel, consumer confidence, political unrest and global economic conditions. For discussion of economic and market trends, see the Overview section ofItem 7. We cannot predict future economic and market conditions with certainty.Our significant business in China subjects us to unique operational, competitive and regulatory risks Maintaining a strong position in the Chinese marketis a key component of our global growth strategy. Our business in China is subject to aggressive competition from many of the largest global manufacturersand numerous domestic manufacturers. As the size of the Chinese market continues to increase we anticipate that additional competitors, both internationaland domestic, will seek to enter the Chinese market and that existing market participants will act aggressively to increase their market share. Increasedcompetition may result in price reductions, reduced margins and challenges to gain or hold market share.In addition to increased competition, Chinese regulators have announced aggressive policy initiatives and quotas for the sale of electric vehicles.Certain risks and uncertainties of doing business in China are solely within the control of the Chinese government, and Chinese law regulates the scope ofour foreign investments and business conducted within China. In order to maintain access to the Chinese market, we may be required to comply withsignificant technical and other regulatory requirements that are unique to the Chinese market, at times with challenging lead-time to implement suchrequirements. These actions may increase the cost of doing business in China and reduce our profitability.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 that must further take into consideration our partners'interests. In joint ventures we are required to foster our relationships with our co-owners as well as promote the overall success of the joint venture, and if aco-owner changes, relationships deteriorate or strategic objectives diverge, our success in the joint venture may be materially adversely affected. The benefitsfrom a successful joint venture are shared among the co-owners, therefore we do not receive all the benefits from our successful joint ventures. In addition,because we share ownership and management with one or more parties, we may have limited control over the actions of a joint venture, particularly when weown a minority interest. As a result, we may be unable to prevent misconduct or other violations of applicable laws by a joint venture. Moreover, a jointventure may not follow the same requirements regarding compliance, internal controls and internal control over financial reporting that we follow. To theextent another party makes decisions that negatively impact the joint venture or internal control issues arise within the joint venture, we may have to takeresponsive or other action or we may be subject to penalties, fines or other related actions for these activities.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 legal and regulatory requirements, and a variety of other political, economic and regulatory risks including: changes ingovernment leadership; changes in laws or regulations impacting our overall business model or restricting our ability to manufacture, purchase or sellproducts, and political pressures to change any aspect of our business model or practices and source raw materials, components, systems and parts oncompetitive terms in a manner consistent with our current practice; changes in tax laws; economic tensions between governments and changes ininternational trade policies, including restrictions on the repatriation of dividends, especially between the U.S. and China, more detailed inspections, new orhigher tariffs, for example, on products imported from Mexico into the U.S.; new barriers to entry or domestic preference procurement requirements, changesto or withdrawals from free trade agreements (for example, the North American Free Trade Agreement or NAFTA), or preferences of foreign nationals fordomestically manufactured products; changes in foreign currency exchange rates and interest rates; economic downturns in foreign countries or geographicregions where we have significant operations, significant changes in conditions in the countries in which we operate with the effect of11Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIEScompetition from new market entrants; 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 from U.S. and foreign laws andregulations, including those related to the Foreign Corrupt Practices Act and certain other anti-corruption laws; differing labor regulations and unionrelationships; and difficulties in obtaining financing in foreign countries for local operations.Any significant disruption at one of our manufacturing facilities could disrupt our production schedule. We assemble vehicles at various facilities aroundthe world. These facilities are typically designed to produce particular models for particular geographic markets. No single facility is designed to manufactureour full range of vehicles. In some cases certain facilities produce products, systems, components and parts that disproportionately contribute a greater degreeto our profitability than others. Should these or other facilities become unavailable either temporarily or permanently for any number of reasons, includinglabor disruptions, the inability to manufacture there may result in harm to our reputation, increased costs, lower revenues and the loss of customers. We maynot be able to easily shift production to other facilities or to make up for lost production. Any new facility needed to replace an inoperable manufacturingfacility would need 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.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 that ultimately derive from a single source and may be atan increased risk for supply disruptions. Disputes, financial difficulties or solvency problems with our suppliers, including Takata Corporation (Takata),which may be exacerbated by the cost of remediating quality issues with these items, could lead to uncertainty in our supply chain or cause supplydisruptions for us which could, in turn, disrupt our operations, including production of certain of our higher margin vehicles. Where we experience supplydisruptions, we may not be able to develop alternate sourcing quickly. Any disruption of our production schedule caused by an unexpected shortage ofsystems, components, raw materials or parts even for a relatively short period of time could cause us to alter production schedules or suspend productionentirely.High prices of raw materials used by us and our suppliers could negatively impact our profitability. Increases in prices for raw materials that we and oursuppliers use in manufacturing products, systems, components and parts such as steel, precious metals, non-ferrous metals, including aluminum, copper andplastic parts may lead to higher production costs for parts and components. This could, in turn, negatively impact our future profitability because we may notbe able to pass all of those costs on to our customers or require our suppliers to absorb such costs.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 far exceeds demand. Many manufacturers have relatively high fixed labor costs as well as significant limitations ontheir ability to close facilities and reduce fixed costs. Many of our competitors have responded to these relatively high fixed costs by providing subsidizedfinancing or leasing programs, offering marketing incentives or reducing vehicle prices. As a result, we are not necessarily able to set our prices to offsethigher costs of marketing incentives, commodity or other cost increases, or the impact of adverse currency fluctuations. Our competitors may also seek tobenefit from economies of scale by consolidating 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.Competitors may independently develop products and services similar to ours, and there are no guarantees that GM's intellectual property rights wouldprevent competitors from independently developing or selling those product and services. There may be instances where, notwithstanding our intellectualproperty position, competitive products or services may impact the value of our brands and other intangible assets, and our business may be adverselyaffected. Moreover, although GM takes12Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESreasonable steps to maintain the confidentiality of GM proprietary information, there can be no assurance that such efforts will completely determisappropriation or improper use of our technology. We sometimes face attempts to gain unauthorized access to our information technology networks andsystems for the purpose of improperly acquiring our trade secrets or confidential business information. The theft or unauthorized use or publication of ourtrade secrets and other confidential business information as a result of such an incident could adversely affect our competitive position. In addition, we maybe the target of enforcement of patents by third parties, including aggressive and opportunistic enforcement claims by non-practicing entities. Regardless ofthe merit of such claims, responding to infringement claims can be expensive and time-consuming. Although we have taken steps to mitigate such risks, if weare found to infringe any third-party rights, we could be required to pay substantial damages or we could be enjoined from offering some of our products andservices.Security breaches and other disruptions to information technology systems and networked products, including connected vehicles, owned or maintainedby us, GM Financial, or third-party vendors or suppliers on our behalf, could interfere with our operations and could compromise the confidentiality ofprivate customer data or our proprietary information. We rely upon information technology systems and manufacture networked products, some of whichare managed by third-parties, to process, transmit and store electronic information, and to manage or support a variety of our business processes, activities andproducts. Additionally we and GM Financial collect and store sensitive data, including intellectual property, proprietary business information, proprietarybusiness information of our dealers and suppliers, as well as personally identifiable information of our customers and employees, in data centers and oninformation technology networks. The secure operation of these systems and products, and the processing and maintenance of the information processed bythese systems and products, is critical to our business operations and strategy. Despite security measures and business continuity plans, these systems andproducts may be vulnerable to damage, disruptions or shutdowns caused by attacks by hackers, computer viruses, or breaches due to errors or malfeasance byemployees, contractors and others who have access to these systems and products. The occurrence of any of these events could compromise the operationalintegrity of these systems and products. Similarly, such an occurrence could result in the compromise or loss of the information processed by these systemsand products. Such events could result in, among other things, the loss of proprietary data, interruptions or delays in our business operations and damage toour reputation. In addition, such events could result in legal claims or proceedings, liability or regulatory penalties under laws protecting the privacy ofpersonal information; disrupt operations; or reduce the competitive advantage we hope to derive from our investment in advanced technologies. We haveexperienced such events in the past and, although past events were immaterial, future events may occur and may be material.Portions of our information technology systems also may experience interruptions, delays or cessations of service or produce errors due to regularmaintenance efforts, such as systems integration or migration work that takes place from time to time. We may not be successful in implementing new systemsand transitioning data, which could cause business disruptions and be more expensive, time-consuming, disruptive and resource intensive. Such disruptionscould adversely impact our ability to design, manufacture and sell products and services, and interrupt other business processes.Security breaches and other disruptions of our in-vehicle systems could impact the safety of our customers and reduce confidence in GM and ourproducts. Our vehicles contain complex information technology systems. These systems control various vehicle functions including engine, transmission,safety, steering, navigation, acceleration, braking, window and door lock functions. We have designed, implemented and tested security measures intended toprevent unauthorized access to these systems. However, hackers have reportedly attempted, and may attempt in the future, to gain unauthorized access tomodify, alter and use such systems to gain control of, or to change, our vehicles’ functionality, user interface and performance characteristics, or to gainaccess to data stored in or generated by the vehicle. Any unauthorized access to or control of our vehicles or their systems or any loss of data could impact thesafety of our customers or result in legal claims or proceedings, liability or regulatory penalties. In addition, regardless of their veracity, reports ofunauthorized access to our vehicles, their systems or data could negatively affect our brand and harm our business, prospects, financial condition andoperating results.Our products are subject to extensive laws, governmental regulations and policies, that can significantly increase our costs and affect how we dobusiness. We are significantly affected by governmental regulations that can increase costs related to the production of our vehicles and affect our productportfolio. Meeting or exceeding many of these regulations is costly and often technologically challenging with respect to mandated emissions and fueleconomy standards, especially where standards may not be harmonized across jurisdictions. We anticipate that the number and extent of these regulations,and the related costs and changes to our product portfolio, may increase significantly in the future. These government regulatory requirements couldsignificantly affect our plans for global product development and given the uncertainty surrounding enforcement and regulatory definitions, may result insubstantial costs, including civil or criminal penalties. In addition, an evolving but un-harmonized regulatory framework may limit or dictate the types ofvehicles we sell and where we sell them, which can affect revenue. Refer to the "Environmental and Regulatory Matters" section of Item 1. Business forfurther information on these regulatory requirements. We also expect that manufacturers will continue to be subject to increased scrutiny from regulatorsglobally.13Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESWe expect that to comply with fuel economy and emission control requirements we will be required to sell a significant volume of electric vehicles, as wellas develop and implement new technologies for conventional internal combustion engines, all at increased cost levels. There are limits on our ability toachieve fuel economy improvements over a given time frame, however. There is no assurance that we will be able to produce and sell vehicles that use suchnew technologies on a profitable basis or that our customers will purchase such vehicles in the quantities necessary for us to comply with these regulatoryprograms.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.Many of our advanced technologies, including autonomous, present novel issues with which domestic and foreign regulators have only limited experienceand will be subject to evolving regulatory frameworks. Any current or future regulations in these areas could impact whether and how these technologies aredesigned and integrated into our products, and may ultimately subject us to increased costs and uncertainty.We could be materially adversely affected by unusual or significant litigation, governmental investigations or other proceedings. We are subject to legalproceedings involving various issues, including product liability lawsuits, stockholder litigation and proceedings related to the Ignition Switch Recall. Inaddition, we are subject to governmental proceedings and investigations. A negative outcome in one or more of these legal proceedings could result in theimposition of damages, including punitive damages, substantial fines, significant reputational harm, civil lawsuits and criminal penalties, interruptions ofbusiness, modification of business practices, equitable remedies and other sanctions against us or our personnel as well as significant legal and other costs. Inaddition, we may become obligated to issue up to 30 million shares of our common stock (subject to adjustment to take into account stock dividends, stocksplits and other transactions) to the Motors Liquidation Company GUC Trust (GUC Trust) under a provision of the Amended and Restated Master Sale andPurchase Agreement between us and General Motors Corporation and certain of its subsidiaries in the event that allowed general unsecured claims against theGUC Trust, as estimated by the United States Bankruptcy Court for the Southern District of New York (Bankruptcy Court), exceed $35.0 billion. At December31, 2017, the Bankruptcy Court estimated that allowed general unsecured claims were approximately $31.9 billion.If, in the discretion of the U.S. Attorney’s Office for the Southern District of New York (the U.S. Attorney's Office), we do not comply with the terms of theDeferred Prosecution Agreement (the DPA), the U.S. Attorney's Office may prosecute us for charges alleged by the U.S. Attorney's Office including thoserelating to faulty ignition switches. On September 17, 2015 we announced that we entered into the DPA with the U.S. Attorney's Office regarding itsinvestigation of the events leading up to certain recalls announced in February and March of 2014 relating to faulty ignition switches. Under the DPA, weconsented to, among other things, the filing of a two-count information (the Information) in the U.S. District Court for the Southern District of New York (theSouthern District) charging GM with a scheme to conceal material facts from a government regulator and wire fraud. We pled not guilty to the charges allegedin the Information. The DPA further provides that, in the event the U.S. Attorney's Office determines during the period of deferral of prosecution (or anyextensions thereof) that we have violated any provision of the DPA, including violating any U.S. federal law or our obligation to cooperate with and assistthe independent monitor (the Monitor), the U.S. Attorney's Office may, in its discretion, either prosecute us on the charges alleged in the Information orimpose an extension of the period of deferral of prosecution of up to one additional year. Under such circumstance, the U.S. Attorney's Office would bepermitted to rely upon the admissions we made in the DPA and would benefit from our waiver of certain procedural and evidentiary defenses. Such a criminalprosecution could subject us to penalties.The costs and effect on our reputation of product safety recalls and alleged defects in products and services could materially adversely affect ourbusiness. Government safety standards require manufacturers to remedy certain product safety defects through recall campaigns. Under these standards, wecould be subject to civil or criminal penalties or may incur various costs, including significant costs for free repairs. At present, the costs we incur inconnection with these recalls typically include the cost of the part being replaced and labor to remove and replace the defective part. The costs to complete arecall or customer satisfaction action could be exacerbated to the extent that such action relates to a global platform. Concerns about the safety of ourproducts, including advanced technologies like autonomous, whether raised internally or by regulators or consumer advocates, and whether or not based onscientific evidence, can result in product delays, recalls, lost sales, governmental investigations, regulatory action, private claims, lawsuits and settlements,and reputational damage. These circumstances can also result in damage to brand image, brand equity and consumer trust in the Company’s products andability to lead the disruption occurring in the automotive industry.14Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESWe currently source a variety of systems, components, raw materials and parts, including but not limited to air bag inflators, from third parties. From time totime these items may have performance, quality or reputational issues that could harm our reputation and cause us to incur significant costs. For example, weare currently conducting recalls for certain Takata air bag inflators used in some of our prior model year vehicles. Further recalls, if any, that may be requiredto remediate Takata air bag inflators in our vehicles could have a material impact on our business.For a further discussion of these matters refer to Note 17 to our consolidated financial statements.We may continue to restructure or divest our operations in various countries, but we may not succeed in doing so. In 2017, we announced significantrestructuring and cost reduction actions to lower our operating costs in response to difficult market and operating conditions in various parts of the world. Aswe continue to assess our performance throughout our regions, we may take additional restructuring actions to rationalize our operations, which may result inimpairments and reduce our profitability in the periods incurred. In addition, we may not realize anticipated savings or benefits from past or future costreduction actions in full or in part or within the time periods we expect. We are also subject to the risks of labor unrest, negative publicity and businessdisruption in connection with our cost reduction actions. Failure to realize anticipated savings or benefits from our cost reduction actions could have amaterial adverse effect on our business, prospects, financial condition, liquidity, results of operations and cash flows.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 operations. We are continuing to implement a number of operating effectiveness initiatives toimprove productivity and reduce costs. Our future competitiveness depends upon our continued success in implementing these initiatives throughout ouroperations. While some of the elements of cost reduction are within our control, others, such as interest rates or return on investments, which influence ourexpense for pensions, depend more on external factors, and there can be no assurance that such external factors will not materially adversely affect our abilityto reduce our costs. Reducing costs may prove difficult due to our focus on increasing advertising and our belief that engineering and other expensesnecessary to improve the performance, safety and customer satisfaction of our vehicles and to continue to innovate our technology, product and serviceofferings to meet changing customer needs and market developments are likely to increase.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. GMFinancial faces a number of business, economic and financial risks that could impair its access to capital and negatively affect its business and operationsand its ability to provide leasing and financing to retail consumers and commercial lending to our dealers to support additional sales of our vehicles. Werely on GM Financial in North America, 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 secured and unsecured debt markets; the performance of loans and leases in itsportfolio, which could be materially affected by delinquencies, defaults or prepayments; wholesale auction values of used vehicles; higher than expectedvehicle return rates and the residual value performance on vehicles GM Financial leases to customers; fluctuations in interest rates and currencies; andchanges to regulation, supervision and licensing across various jurisdictions, including new regulations or sanctions imposed in the U.S. by the Departmentof 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 achieve15Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESadequate returns. Our employee benefit plans currently hold a significant amount of equity and fixed income securities. A detailed description of theinvestment funds and strategies and our potential funding requirements are disclosed in Note 16 to our consolidated financial statements, which alsodescribes significant concentrations of risk to the plan 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 laws and regulations. Futurefunding requirements generally increase if the discount rate decreases or if actual asset returns are lower than expected asset returns, assuming other factorsare held constant. We estimate future contributions to these plans using assumptions with respect to these and other items. Changes to those assumptionscould have a significant effect on future contributions.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.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, 2017 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. We, our subsidiaries or associated companies in which we own an equityinterest own most of these properties and/or lease a portion of these properties. Leased properties are primarily composed of warehouses and administration,engineering and sales offices.We have manufacturing, assembly, distribution, office or warehousing operations in 35 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, Brazil, Canada, China, Colombia, Ecuador, Mexico, South Korea, Thailand and Vietnam.GM Financial owns or leases facilities for administration and regional credit centers. GM Financial has 39 facilities, of which 27 are located in the U.S. Themajor facilities outside the U.S. are located in Brazil, Canada, China and Mexico.* * * * * * *Item 3. Legal ProceedingsRefer to the discussion in the Litigation-Related Liability and Tax Administrative Matters section in Note 17 to our consolidated financial statements forinformation relating to legal proceedings. * * * * * * *Item 4. Mine Safety DisclosuresNot applicable* * * * * * *16Table of ContentsPART IIItem 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity SecuritiesMarket Information Shares of our common stock are publicly traded on the New York Stock Exchange. The following table summarizes the quarterly priceranges of our common stock based on high and low prices from intraday trades on the New York Stock Exchange: Years Ended December 31, 2017 2016 High Low High LowFirst quarter$38.55 $33.79 $33.54 $26.69Second quarter$35.40 $31.92 $33.41 $27.34Third quarter$40.69 $34.45 $32.87 $27.52Fourth quarter$46.76 $40.70 $37.74 $30.21Holders At January 30, 2018 we had 1.4 billion issued and outstanding shares of common stock held by 511 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, as described further in "Liquidity and Capital Resources" in MD&A, will depend on business conditions, our financial condition,earnings, liquidity and capital requirements and other factors. Refer to Item 6. Selected Financial Data for cash dividends declared on our common stock forthe years ended December 31, 2017, 2016 and 2015.Purchases of Equity Securities The following table summarizes our purchases of common stock in the three months ended December 31, 2017: Total Number ofShares Purchased(a) WeightedAveragePrice Paidper Share Total Number ofShares PurchasedUnder AnnouncedPrograms(b) Approximate Dollar Valueof Shares That May Yet bePurchased Under AnnouncedProgramsOctober 1, 2017 through October 31, 201716,530,750 $44.72 16,381,375 $4.3 billionNovember 1, 2017 through November 30, 201718,779,333 $43.53 16,141,363 $3.6 billionDecember 1, 2017 through December 31, 20171,631,403 $42.97 1,550,706 $3.5 billionTotal36,941,486 $44.04 34,073,444 __________(a)Shares purchased include authorized shares that were a part of our stock repurchase plan. In addition, shares purchased consist of shares retained by us for the payment of theexercise price upon the exercise of warrants and shares delivered by employees or directors to us for the payment of taxes resulting from issuance of common stock upon thevesting of Restricted Stock Units (RSUs), Performance Stock Units (PSUs) and Restricted Stock Awards (RSAs) relating to compensation plans. In June 2017 ourshareholders approved the 2017 Long Term Incentive Plan which authorizes awards of stock options, stock appreciation rights, RSAs, RSUs, PSUs or other stock-basedawards to selected employees, consultants, advisors, and non-employee Directors of the Company. Refer to Note 22 to our consolidated financial statements for additionaldetails on employee stock incentive plans and Note 20 to our consolidated financial statements for additional details on warrants outstanding.(b)In January 2017 we announced that our Board of Directors had authorized the purchase of up to an additional $5 billion of our common stock with no expiration date.* * * * * * *Item 6. Selected Financial Data17Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES At and for the Years Ended December 31,2017 2016 2015 2014 2013Income Statement Data: Total net sales and revenue$145,588 $149,184 $135,725 $137,958 $138,792Income from continuing operations(a)(b)$330 $9,269 $9,590 $4,525 $5,960Basic earnings per common share – continuing operations(a)(b)$0.23 $6.12 $6.09 $2.06 $3.16Diluted earnings per common share – continuing operations(a)(b)$0.22 $6.00 $5.89 $1.95 $2.76Dividends declared per common share$1.52 $1.52 $1.38 $1.20 $—Balance Sheet Data: Total assets(c)$212,482 $221,690 $194,338 $177,311 $166,231Automotive notes and loans payable$13,502 $10,560 $8,535 $9,084 $6,815GM Financial notes and loans payable$80,717 $64,563 $45,479 $29,304 $22,174Total equity$36,200 $44,075 $40,323 $36,024 $43,174_________(a)In the year ended December 31, 2017 we recorded tax expense of $7.3 billion related to U.S. tax reform legislation, $2.3 billion related to the establishment of a valuationallowance against deferred tax assets that will no longer be realizable as a result of the sale of the Opel/Vauxhall Business, and charges of $460 million related to restructuringactions in India and South Africa. In the year ended December 31, 2015 we recorded the reversal of deferred tax asset valuation allowances of $3.9 billion in Europe andrecorded charges related to the Ignition Switch Recall Compensation Program (Compensation Program) and for various legal matters of approximately $1.6 billion. In the yearended December 31, 2014 we recorded charges of approximately $2.8 billion in Automotive cost of sales related to recall campaigns and courtesy transportation, a catch-upadjustment of $0.9 billion related to the change in estimate for recall campaigns and a charge of $0.4 billion related to the Compensation Program.(b)In December 2014 we redeemed all of the remaining shares of our Series A Preferred Stock for $3.9 billion, which reduced Income from continuing operations by $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 $3.2 billion, whichreduced Income from continuing operations by $0.8 billion.(c)Total assets includes assets held for sale of $20.6 billion, $20.0 billion, $17.8 billion, and $16.1 billion at December 31, 2016 through 2013, respectively.* * * * * * *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.18Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNon-GAAP Measures Unless otherwise indicated, our non-GAAP measures discussed in this MD&A are related to our continuing operations and not ourdiscontinued operations or our assets and liabilities held for sale. Our non-GAAP measures include earnings before interest and taxes (EBIT)-adjusted,presented net of noncontrolling interests, earnings per share (EPS)-diluted-adjusted, effective tax rate-adjusted (ETR-adjusted), return on invested capital-adjusted (ROIC-adjusted) and adjusted automotive free cash flow. Our calculation of these non-GAAP measures may not be comparable to similarly titledmeasures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP measureshas 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 certain of 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 EBIT-adjusted is presented net of noncontrolling interests and is used by management and can be used by investors to review ourconsolidated operating results because it excludes automotive interest income, automotive interest expense and income taxes as well as certain additionaladjustments that are not considered part of our core operations. Examples of adjustments to EBIT include but are not limited to impairment charges related togoodwill; impairment charges on long-lived assets and other exit costs resulting from strategic shifts in our operations or discrete market and businessconditions; costs arising from the ignition switch recall and related legal matters; and certain currency devaluations associated with hyperinflationaryeconomies. For EBIT-adjusted and our other non-GAAP measures, once we have made an adjustment in the current period for an item, we will also adjust therelated non-GAAP measure in any future periods in which there is an impact from the item.Core EBIT-adjusted Beginning in 2018, we intend to report a Core EBIT-adjusted metric. Core EBIT-adjusted will be used by management and can beused by investors to review our core consolidated operating results. Core EBIT-adjusted begins with EBIT-adjusted and excludes the EBIT-adjusted results ofour autonomous vehicle operations, including Cruise Automation Inc. (Cruise), Maven and our investment in Lyft.EPS-diluted-adjusted EPS-diluted-adjusted is used by management and can be used by investors to review our consolidated diluted EPS results on aconsistent basis. EPS-diluted-adjusted is calculated as net income attributable to common stockholders-diluted less income (loss) from discontinuedoperations on an after-tax basis, adjustments noted above for EBIT-adjusted, gains or losses on the extinguishment of debt obligations on an after-tax basisand certain income tax adjustments divided by weighted-average common shares outstanding-diluted. Examples of income tax adjustments include theestablishment or reversal of significant deferred tax asset valuation allowances.ETR-adjusted ETR-adjusted is used by management and can be used by investors to review the consolidated effective tax rate for our core operations on aconsistent basis. ETR-adjusted is calculated as Income tax expense less the income tax related to the adjustments noted above for EBIT-adjusted and theincome tax adjustments noted above for EPS-diluted-adjusted divided by Income before income taxes less adjustments.ROIC-adjusted ROIC-adjusted is used by management and can be used by investors to review our investment and capital allocation decisions. We defineROIC-adjusted as EBIT-adjusted for the trailing four quarters divided by ROIC-adjusted average net assets, which is considered to be the average equitybalances adjusted for average automotive debt and interest liabilities, exclusive of capital leases; average automotive net pension and other postretirementbenefits (OPEB) liabilities; and average automotive net income tax assets during the same period. Adjustments to the average equity balances exclude assetsand liabilities classified as either assets held for sale or liabilities held for sale.Adjusted automotive free cash flow Adjusted automotive free cash flow is used by management and can be used by investors to review the liquidity of ourautomotive operations and to measure and monitor our performance against our capital allocation program and evaluate our automotive liquidity against thesubstantial cash requirements of our automotive operations. We measure adjusted automotive free cash flow as automotive operating cash flow fromcontinuing operations less capital expenditures adjusted for management actions, primarily related to strengthening our balance sheet, such as prepaymentsof debt and discretionary19Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIEScontributions to employee benefit plans. Refer to the “Liquidity and Capital Resources” section of this MD&A for our reconciliation of Net automotive cashprovided by operating activities under U.S. GAAP to this non-GAAP measure.Core adjusted automotive free cash flow Beginning in 2018, we intend to report a Core adjusted automotive free cash flow metric. Core adjustedautomotive free cash flow will be used by management and can be used by investors to review the liquidity of our automotive operations and to measure andmonitor our performance against our capital allocation program and evaluate our automotive liquidity against the substantial cash requirements of ourautomotive operations. Core adjusted automotive free cash flow begins with adjusted automotive free cash flow and excludes the cash flows of ourautonomous vehicle operations, including Cruise, Maven and our investment in Lyft.The following table reconciles Net income (loss) attributable to stockholders under U.S. GAAP to EBIT-adjusted: Years Ended December 31,201720162015Net income (loss) attributable to stockholders$(3,864)$9,427$9,687(Income) loss from discontinued operations, net of tax4,2121(25)Income tax expense (benefit)11,5332,739(1,219)Gain on extinguishment of debt——(449)Automotive interest expense575563423Automotive interest income(266)(182)(167)AdjustmentsGMI restructuring(a)460—297Venezuela-related matters(b)80—720Ignition switch recall and related legal matters(c)1143001,785Russia exit costs(d)— — 438Other——(41)Total adjustments6543003,199EBIT-adjusted$12,844$12,848$11,449________(a)This adjustment was excluded because of a strategic decision to rationalize our core operations by exiting or significantly reducing our presence in various international marketsto focus resources on opportunities expected to deliver higher returns. The adjustment primarily consists of asset impairments, sales incentives, inventory provisions, dealerrestructuring, employee separations and other contract cancellation costs in India, South Africa, and Thailand.(b)In the year ended December 31, 2017 this adjustment was excluded because we ceased operations and terminated employment relationships in Venezuela. In the year endedDecember 31, 2015 this adjustment was excluded because of the devaluation of the Venezuela Bolivar Fuerte (BsF) and our inability to transact to obtain U.S. Dollars.(c)These adjustments were excluded because of the unique events associated with the ignition switch recall. These events included the creation of the Compensation Program, aswell as various investigations, inquiries and complaints from constituents.(d)These adjustments were excluded because of our decision to exit the Russia market in 2015. The Russia exit costs primarily consisted of sales incentives, dealer restructuringand other contract cancellation costs and asset impairments.The following table reconciles diluted earnings (loss) per common share under U.S. GAAP to EPS-diluted-adjusted:20Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES Years Ended December 31,201720162015AmountPer ShareAmountPer ShareAmountPer ShareDiluted earnings (loss) per common share$(3,880)$(2.60)$9,427$6.00$9,686$5.91Diluted (earnings) loss per common share – discontinued operations4,2122.821—(25)(0.02)AdjustmentsGain on extinguishment of debt————(449)(0.27)All other adjustments(a)6540.443000.193,1991.95Total adjustments6540.443000.192,7501.68Tax effect on adjustments(b)(208)(0.14)(114)(0.07)(201)(0.13)Tax adjustments(c)9,0996.10——(4,001)(2.44)EPS-diluted-adjusted$9,877$6.62$9,614$6.12$8,209$5.00________(a)Refer to the reconciliation of Net income (loss) attributable to stockholders under U.S. GAAP to EBIT-adjusted within this section of MD&A for adjustment details.(b)The tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction to which the adjustment relates.(c)In the year ended December 31, 2017 these adjustments consist of the tax expense of $7.3 billion related to U.S. tax reform legislation and the establishment of a valuationallowance against deferred tax assets of $2.3 billion that will no longer be realizable as a result of the sale of the Opel/Vauxhall Business, partially offset by tax benefits relatedto tax settlements. In the year ended December 31, 2015 these adjustments primarily consist of the tax benefit related to the valuation allowance reversal in Europe. Theseadjustments were excluded because impacts of tax legislation and valuation allowances are not considered part of our core operations.The following table reconciles our effective tax rate under U.S. GAAP to ETR-adjusted: Years Ended December 31,201720162015Income beforeincome taxesIncome taxexpenseEffective taxrateIncome beforeincome taxesIncome taxexpenseEffective taxrateIncome beforeincome taxesIncome taxexpense(benefit)Effective taxrateEffective tax rate$11,863$11,53397.2%$12,008$2,73922.8%$8,371$(1,219)(14.6)%Adjustments(a)6542083001142,750201Tax adjustments(b)(9,099)—4,001ETR-adjusted$12,517$2,64221.1%$12,308$2,85323.2%$11,121$2,98326.8 %__________(a)Refer to the reconciliation of Net income (loss) attributable to stockholders under U.S. GAAP to EBIT-adjusted within this section of MD&A for adjustment details.(b)Refer to the reconciliation of diluted earnings (loss) per common share under U.S. GAAP to EPS-diluted-adjusted within this section of MD&A for adjustment details.We define return on equity (ROE) as Net income (loss) attributable to stockholders for the trailing four quarters divided by average equity for the sameperiod. Management uses average equity to provide comparable amounts in the calculation of ROE. The following table summarizes the calculation of ROE(dollars in billions): Years Ended December 31,201720162015Net income (loss) attributable to stockholders$(3.9)$9.4$9.7Average equity$42.2$43.6$37.0ROE(9.2)%21.6%26.2%The following table summarizes the calculation of ROIC-adjusted (dollars in billions):21Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES Years Ended December 31,201720162015EBIT-adjusted(a)$12.8$12.8$11.4Average equity$42.2$43.6$37.0Add: Average automotive debt and interest liabilities (excluding capital leases)11.69.98.0Add: Average automotive net pension & OPEB liability21.022.025.8Less: Average automotive net income tax asset(29.3)(32.8)(33.0)ROIC-adjusted average net assets$45.5$42.7$37.8ROIC-adjusted28.2%30.1%30.3%________(a)Refer to the reconciliation of Net income (loss) attributable to stockholders under U.S. GAAP to EBIT-adjusted within this section of MD&A.Overview Our management team has adopted a strategic plan to transform GM into the world's most valued automotive company. Our plan includes severalmajor initiatives that we anticipate will redefine the future of personal mobility through our zero crashes, zero emissions, zero congestion vision while alsostrengthening the core of our business: earning customers for life by delivering winning vehicles, leading the industry in quality and safety and improvingthe customer ownership experience; leading in technology and innovation, including electrification, autonomous, data monetization and connectivity;growing our brands; making tough, strategic decisions about which markets and products in which we will invest and compete; building profitable adjacentbusinesses and targeting 10% core margins on an EBIT-adjusted basis.In addition to our EBIT-adjusted margin improvement goal, our overall financial targets include total annual operational and functional cost savings of$6.5 billion through 2018 compared to 2014 costs, of which approximately $5.5 billion has been realized as of December 31, 2017, and which will more thanoffset our planned incremental investments in brand building, engineering and technology as we launch new products; and execution of our capitalallocation program as described in the "Liquidity and Capital Resources" section of this MD&A.For the year ending December 31, 2018 we expect EPS-diluted and EPS-diluted-adjusted to be in the mid-six dollar range. We do not consider the potentialfuture impact of adjustments on our expected financial results. We expect core EBIT-adjusted and core adjusted automotive free cash flow to be in line with2017. Core consists of all operations excluding our autonomous vehicle operations, including Cruise, Maven car sharing entities, and our investment in Lyft.We 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. Refer toItem1A. Risk Factors for a discussion of these challenges. As we continue to assess our performance, additional restructuring and rationalization actions maybe required or determination may be made that the carrying amount of our long-lived assets may not be recoverable in certain of these countries. Such adetermination may give rise to future asset impairments or other charges which may have a material impact on our results of operations.GMNA In the year ended December 31, 2017 industry sales in North America were 21.5 million units representing a decrease of 1.5% compared to thecorresponding period in 2016. U.S. industry sales were 17.6 million units in the year ended December 31, 2017.In the year ended December 31, 2017 our vehicle sales in the U.S., our largest market in North America, totaled 3.0 million units for market share of 17.1%,representing an increase of 0.1 percentage points compared to the corresponding period in 2016. We continue to lead the U.S. industry in market share.We achieved EBIT-adjusted margins of 10.7% on continued strength of U.S. industry light vehicle sales, key product launches and continued focus onoverall cost savings. Based on our current cost structure, we estimate GMNA’s breakeven point at the U.S. industry level to be in the range of 10.0 to 11.0million units. We expect to sustain an EBIT-adjusted margin of 10% in 2018 on continued strength of U.S. industry light vehicle sales, favorable mix of full-size trucks and crossovers relative to passenger cars, key product launches and continued focus on overall cost savings.22Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESGMI In the year ended December 31, 2017 China industry sales were 28.3 million units and our market share was 14.3%. We continue to see strength insales of our Cadillac and Baojun passenger vehicles and SUVs, as well as positive momentum in Chevrolet sales driven by new product launches. Wulingsales were impacted by the market shift away from mini commercial vehicles. In the year ended December 31, 2017 our Automotive China JVs generatedequity income of $2.0 billion. We expect low industry growth in 2018 and continuation of pricing pressures, which will continue to pressure margins. Wecontinue to expect equal to increased vehicle sales in 2018 driven by new launches and expect to sustain strong China equity income by focusing onimprovements in vehicle mix, cost efficiencies, and downstream performance optimization.Many markets across the region continue to improve led by increases in Argentina and Brazil leading to industry sales of 25.2 million units, representingan increase of 4.0% in the year ended December 31, 2017 compared to the corresponding period in 2016. In the year ended December 31, 2017 our retailsales totaled 1.3 million units leading to a market share of 5.1%, representing a decrease of 0.3 percentage points compared to the corresponding period in2016.In May 2017 we announced several restructuring actions in GMI which were primarily related to the withdrawal of Chevrolet from the Indian and SouthAfrican markets at the end of 2017 and the transition of our South African manufacturing operations to Isuzu Motors. These actions occurred as a result of astrategic decision to focus resources on opportunities expected to deliver higher returns. Refer to Note 19 to our consolidated financial statements foradditional information related to these restructuring actions. In May 2017 we deconsolidated our business in Venezuela which resulted in a charge of $0.1billion during the year ended December 31, 2017.GM Korea Company (GM Korea) entered into a collectively bargained wage agreement which was ratified by its union in January 2018. The impact of theagreement was not material to our consolidated financial statements.We have had recent discussions with key stakeholders in GM Korea, including its minority owners and union, regarding the need to improve GM Korea'sfinancial and operational performance. As we strategically assess our performance and the manner in which we operate in Korea and certain other countries,additional restructuring and rationalization actions may be required and may have a material impact on our results of operations.Corporate Beginning in 2012 through January 30, 2018, we purchased an aggregate of 504 million shares of our outstanding common stock for $16.2billion.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 17 to our consolidated financial statements for additional information.Takata Matters In May 2016 NHTSA issued an amended consent order requiring Takata to file defect information reports (DIRs) for previously unrecalledfront airbag inflators that contain phased-stabilized 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 of time, temperature cycling and environmental moisture.Although we do not believe there is a safety defect at this time in any unrecalled GM vehicles within scope of the Takata DIRs, in cooperation with NHTSAwe filed 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 those GMT900vehicles. On November 28, 2016, NHTSA granted GM’s deferral request in connection with this petition. The deferral provides GM until August 31, 2017 topresent evidence and analysis that our vehicles do not pose an unreasonable risk to motor vehicle safety.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 2016DIRs. On the same day, we also filed a second petition for inconsequentiality and deferral of decision with respect to the vehicles subject to our January 2017DIRs. On January 18, 2017, NHTSA consolidated our first and second petitions for inconsequentiality and will rule on both at the same time.23Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESOn August 25, 2017, we filed a supplemental brief in support of our petitions that provided NHTSA with the results of our long-term study and testing andthe basis for our determination that the inflators in these vehicles do not present an unreasonable risk to safety and that no repair should ultimately berequired. In our brief, we requested that NHTSA grant our petitions or, in the alternative, grant an additional deferral period to provide time for further testing.We filed a third set of Preliminary DIRs for certain GMT900 vehicles on January 9, 2018. These January 2018 DIRs are consistent with GM's May 2016DIRs and January 2017 DIRs. On the same day, we also filed a third petition for inconsequentiality with respect to the vehicles subject to our January 2018DIRs.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 propellant degradation and rupture risk. For example, the airbag inflators used in the vehicles are a variant engineeredspecifically for our vehicles, and include features such as greater venting, unique propellant wafer configurations, and machined steel end caps. The inflatorsare packaged in the instrument panel in such a way as to minimize exposure to moisture from the climate control system. Also, these vehicles have featuresthat minimize the maximum temperature to which the inflator will be exposed, such as larger interior volumes and standard solar absorbing windshields andside glass.Accordingly, no warranty provision has been made for any repair associated with our vehicles subject to the Preliminary DIRs and amended consent order.However, in the event we are ultimately obligated to repair the vehicles subject to current or future Takata DIRs under the amended consent order in the U.S.,we estimate a reasonably possible impact to GM of approximately $1.0 billion.GM is engaged in discussions with regulators outside the U.S. with respect to Takata inflators. There are differences in vehicle and inflator design betweenthe relevant vehicles sold internationally and those sold in the U.S. We continue to gather and analyze evidence about these inflators and to share ourfindings with regulators. We were required to recall certain vehicles sold outside of the U.S. in the three months ended September 30, 2017 to replace Takatainflators in these vehicles. Additional recalls, if any, could be material to our results of operations and cash flows. We continue to monitor the internationalsituation.On June 26, 2017, Takata filed for bankruptcy protection in the United States and Japan. Over the past several months, a group of global automakers,including GM, have had discussions with Takata and Key Safety Systems, Inc. regarding a potential transaction involving the sale of Takata's business. GMhas not experienced any supply interruptions arising from Takata initiating formal insolvency proceedings and anticipates that Takata will continue anuninterrupted supply of component parts to GM during the insolvency proceedings. GM continues to monitor Takata’s financial and operationalperformance and to develop alternative and contingent supplies to attempt to mitigate prospective threats to the supply of components.PSA Group Transaction On July 31, 2017 we closed the sale of our Opel/Vauxhall Business to PSA Group and on October 31, 2017 we closed the sale ofthe Fincos to Banque PSA Finance S.A. and BNP Paribas Personal Finance S.A.The net consideration paid at closing for the European Business was $2.5 billion, consisting of (1) $2.2 billion in cash; and (2) $0.8 billion in warrants inPSA Group; partially offset by (3) the $0.5 billion de-risking premium payment made to PSA Group for assuming certain underfunded pension liabilities. Inaddition, we agreed to sell the shares of PSA Group received upon exercise of the warrants within 35 days after exercise. The purchase price is subject tocertain working capital adjustments as provided in the Master Agreement (the Agreement).The total charge from the sale of the European Business was $6.2 billion, net of tax, of which $3.9 billion is recorded in Income (loss) from discontinuedoperations, net of tax, and $2.3 billion was treated as an adjustment to both EPS-diluted-adjusted and ETR-adjusted. The charge relates to: (1) $4.3 billion ofdeferred tax assets that will no longer be realizable or that transferred to PSA Group; (2) $1.5 billion related to previously deferred pension losses andpayment of the de-risking premium to PSA Group for its assumption of certain underfunded pension liabilities; (3) a pre-tax disposal loss of $0.5 billion as aresult of the sale of the Fincos, which includes the recognition of $0.2 billion of foreign currency translation losses; (4) a pre-tax charge of $0.4 billion for thecancellation of production programs resulting from the convergence of vehicle platforms between the European Business and PSA Group; and (5) other coststo support the separation of operations to be provided for a period of time following closing; partially offset by proceeds.Our wholly owned subsidiary (the Seller) has agreed to indemnify PSA Group for certain losses resulting from any inaccuracy of the representations andwarranties or breaches of our covenants included in the Agreement and for certain other liabilities, including emissions and product liabilities. The Companyhas entered into a guarantee for the benefit of PSA Group and pursuant24Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESto which the Company has agreed to guarantee the Seller's obligation to indemnify PSA Group. Certain of these indemnification obligations are subject totime limitations, thresholds and/or caps as to the amount of required payments. We are currently unable to estimate any reasonably possible overall amountsor range of loss that may result from claims made under these indemnities, if any.PSA Group has provided a number of working capital and other adjustments under the Agreement and other ancillary agreements, many of which arecustomary in these types of transactions. We currently believe that post-closing adjustments under the Agreement, if any, would not have a material impacton our results of operations.We retained net underfunded pension liabilities of $6.8 billion owed primarily to current pensioners and former employees of the European Business withvested pension rights. PSA Group assumed, pursuant to the Agreement, approximately $3.1 billion of net underfunded pension liabilities primarily withrespect to active employees of the Opel/Vauxhall Business, and during the three months ended September 30, 2017 the Seller made payments of $3.4 billionin respect of these assumed liabilities, which includes pension funding payments for active employees and the de-risking premium payment discussed above.At closing we drew upon our three-year unsecured revolving credit facility to fund these payments. We issued debt securities thereafter to repay the draw onour credit facility. As part of the retained pension liabilities described above, we retained the U.K. defined benefit pension plans in existence at signingrelated to the Opel/Vauxhall Business, including responsibility for service cost accruals through the closing date.We have agreed to purchase from and supply to PSA Group certain vehicles for a period of time following closing and not to engage in certain competingbusinesses in Europe for a period of three years.Refer to Note 3 to our consolidated financial statements for additional information.Contingently Issuable Shares Under the Amended and Restated Master Sale and Purchase Agreement between us and Motors Liquidation Company wemay be obligated to issue additional shares (Adjustment Shares) of our common stock in the event that allowed general unsecured claims against the GUCTrust, as estimated by the Bankruptcy Court, exceed $35.0 billion. Refer to Note 17 to our consolidated financial statements for a description of thecontingently issuable Adjustment Shares.Automotive Financing - GM Financial Summary and Outlook GM Financial has expanded its leasing and prime lending programs in North America;therefore, leasing and prime lending have become a larger percentage of the originations and retail portfolio balance. During 2017 we saw used car prices inthe U.S. decline approximately 5% as compared to 2016. For 2018, an increasing supply of used vehicles resulting from off-lease returns will continue topressure used car prices. As a result, we expect a further decline in used car prices in the U.S. between 5% and 6% in 2018 as compared to 2017. GM Financialcontinues to expect pre-tax income to double from 2014 earnings of $0.8 billion once full captive penetration levels are achieved on a consistent basis. Thefollowing table summarizes the residual value as well as the number of units included in GM Financial equipment on operating leases, net by vehicle type(units in thousands):December 31, 2017December 31, 2016Residual ValueUnitsPercentageResidual ValueUnitsPercentageCars$5,70145027.2%$5,24042031.7%Trucks7,17328517.3%5,23122416.9%Crossovers13,72381849.5%10,34960445.7%SUVs3,809996.0%2,791755.7%Total$30,4061,652100.0%$23,6111,323100.0%GM Financial's retail penetration in North America grew to approximately 37% in the year ended December 31, 2017 from approximately 33% in 2016 as aresult of the expanded leasing and lending programs. In the year ended December 31, 2017 GM Financial's revenue consisted of leased vehicle income of71%, retail finance charge income of 23%, and commercial finance charge income of 3%. We believe that offering a comprehensive suite of financingproducts will generate incremental sales of our vehicles, drive incremental GM Financial earnings and help support our sales throughout various economiccycles.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 option25Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESpenetration in current year wholesale vehicle volumes. Price measures the impact of changes related to Manufacturer’s Suggested Retail Price and varioussales allowances. Cost includes primarily: (1) material and freight; (2) manufacturing, engineering, advertising, administrative and selling and warrantyexpense; and (3) non-vehicle related activity. Other includes primarily foreign exchange and non-vehicle related automotive revenues as well as equityincome or loss from our nonconsolidated affiliates. Refer to the regional sections of this MD&A for additional information.Total Net Sales and Revenue Years Ended December 31, Favorable/(Unfavorable) Variance Due To2017 2016 % Volume Mix Price Other (Dollars in billions)GMNA$111,345 $119,113 $(7,768) (6.5)% $(12.2) $3.5 $0.6 $0.3GMI21,920 20,943 977 4.7 % $0.2$0.2$0.6 $—Corporate342 149 193 n.m. $0.2Automotive133,607 140,205 (6,598) (4.7)% $(12.0) $3.7 $1.3 $0.5GM Financial12,151 8,983 3,168 35.3 % $3.2Eliminations(170) (4) (166) n.m. $(0.2)Total net sales and revenue$145,588 $149,184 $(3,596) (2.4)% $(12.0) $3.7 $1.3 $3.5________n.m. = not meaningful Years Ended December 31, Favorable/(Unfavorable) Variance Due To2016 2015 % Volume Mix Price Other (Dollars in billions)GMNA$119,113 $106,744 $12,369 11.6 % $10.8 $0.7 $1.7 $(0.8)GMI20,943 22,970 (2,027) (8.8)% $(1.7)$0.2$1.2 $(1.7)Corporate149 150 (1) (0.7)% $—Automotive140,205 129,864 10,341 8.0 % $9.1 $0.9 $2.9 $(2.5)GM Financial8,983 5,867 3,116 53.1 % $3.1Eliminations(4) (6) 2 33.3 % $—Total net sales and revenue$149,184 $135,725 $13,459 9.9 % $9.1 $0.9 $2.9 $0.7Automotive Cost of Sales Years Ended December 31, Favorable/(Unfavorable) Variance Due To 2017 2016 % Volume Mix Cost Other (Dollars in billions)GMNA$92,765 $99,690 $6,925 6.9 % $8.7 $(2.7) $1.2 $(0.3)GMI21,449 20,426 (1,023) (5.0)% $(0.1) $(0.5) $(0.1) $(0.3)Corporate818 387 (431) n.m. $— $(0.6) $0.2Eliminations(163) (4) 159 n.m. $0.2 $—Total automotive cost of sales$114,869 $120,499 $5,630 4.7 % $8.6 $(3.1) $0.6 $(0.4)________n.m. = not meaningful26Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES Years Ended December 31, Favorable/(Unfavorable) Variance Due To 2016 2015 % Volume Mix Cost Other (Dollars in billions)GMNA$99,690 $88,880 $(10,810) (12.2)% $(7.6) $(1.9) $(1.7) $0.4GMI20,426 23,694 3,268 13.8 % $1.4 $(0.6) $0.9 $1.6Corporate387 426 39 9.2 % $(0.1) $0.1Eliminations(4) (5) (1) (20.0)% $— Total automotive cost of sales$120,499 $112,995 $(7,504) (6.6)% $(6.2) $(2.6) $(0.9) $2.2The 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.Factors 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 tothe regional sections of this MD&A for additional information on volume and mix.In the year ended December 31, 2017 favorable Cost was due primarily to: (1) decreased warranty costs of $1.4 billion; (2) decreased employee relatedcosts of $0.8 billion; (3) decreased material and freight costs of $0.7 billion related to carryover vehicles; and (4) decreased restructuring costs related toUAW cash severance incentive program of $0.2 billion in 2016 that did not recur in 2017; partially offset by (5) increased material and freight costs of $1.4billion related to vehicles launched within the last twelve months incorporating significant exterior and/or interior changes (Majors); (6) increasedengineering costs of $0.7 billion; and (7) charges of $0.4 billion related to restructuring actions in India and South Africa. In the year ended December 31,2017 unfavorable Other was due primarily to the foreign currency effect of $0.4 billion due to the strengthening of the Brazilian Real and other currenciesagainst the U.S. Dollar.In the year ended December 31, 2016 unfavorable Cost was due primarily to: (1) increased other costs of $2.3 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 $2.3 billionrelated to carryover vehicles, partially offset by increased material and freight costs of $1.3 billion related to Majors; and (3) impairments of $0.4 billionrelated to Thailand and Venezuela in 2015. In the year ended December 31, 2016 favorable Other was due primarily to the foreign currency effect of $2.0billion due primarily to the BsF devaluation in 2015 and the weakening of the Argentine Peso, Canadian Dollar and other currencies against the U.S. Dollar;and costs related to our exit in Russia of $0.2 billion in 2015. Automotive Selling, General and Administrative Expense Years Ended December 31, Year Ended2017 vs. 2016 Change Year Ended2016 vs. 2015 Change 201720162015Favorable/(Unfavorable)%Favorable/(Unfavorable)%Automotive selling, general andadministrative expense$9,575$10,354$11,888$7797.5%$1,53412.9%In the year ended December 31, 2017 Automotive selling, general and administrative expense decreased due primarily to decreased advertising costs of$0.4 billion and a decrease in net charges of $0.2 billion for legal related matters related to the ignition switch recall.In the year ended December 31, 2016 Automotive selling, general and administrative expense decreased due primarily to a net decrease in charges of $1.5billion for matters related to the ignition switch recall and favorable net foreign currency effect of $0.2 billion due primarily to the weakening of variouscurrencies against the U.S. Dollar.Income Tax Expense (Benefit)27Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES Years Ended December 31, Year Ended2017 vs. 2016 Change Year Ended2016 vs. 2015 Change 2017 2016 2015 Favorable/(Unfavorable) % Favorable/(Unfavorable) %Income tax expense (benefit)$11,533$2,739$(1,219)$(8,794)n.m.$(3,958)n.m.________n.m. = not meaningfulIn the year ended December 31, 2017 Income tax expense increased due primarily to the $7.3 billion tax expense related to U.S. tax reform legislation andthe establishment of a $2.3 billion valuation allowance related to the sale of Opel/Vauxhall Business, partially offset by tax benefits related to tax settlementsand foreign dividends.In the year ended December 31, 2016 Income tax expense increased due primarily to the absence of the 2015 income tax benefit from the release ofEuropean valuation allowances of $3.9 billion and an increase in income tax expense of $0.6 billion due primarily to an increase in pre-tax income; partiallyoffset by $0.6 billion in tax benefits related to foreign currency losses.For the year ended December 31, 2017 our ETR-adjusted was 21.1%, and we expect the effective tax rate to be similar for the year ending December 31,2018. Refer to Note 18 to our consolidated financial statements for additional information related to Income tax expense (benefit) including information on U.S.tax reform legislation. Discontinued Operations Years Ended December 31, Year Ended2017 vs. 2016 Change Year Ended2016 vs. 2015 Change 2017 2016 2015 Favorable/(Unfavorable) % Favorable/(Unfavorable) %Income (loss) from discontinuedoperations, net of tax$(4,212)$(1)$25$(4,211)n.m.$(26)n.m.________n.m. = not meaningfulIn the year ended December 31, 2017 Income (loss) from discontinued operations, net of tax, decreased due primarily to a disposal loss of $3.9 billion, netof tax, primarily related to deferred tax assets that transferred to PSA Group, previously deferred pension losses and payment of the de-risking premium toPSA Group for its assumption of certain underfunded pension liabilities and the loss as a result of the sale of the Fincos.GM North AmericaYears Ended December 31,Favorable/(Unfavorable) Variance Due To20172016% Volume Mix Price Cost Other (Dollars in billions)Total net sales and revenue$111,345$119,113$(7,768)(6.5)% $(12.2) $3.5 $0.6 $0.3EBIT-adjusted$11,889$12,388$(499)(4.0)% $(3.5) $0.9 $0.6 $1.8 $(0.3)EBIT-adjusted margin10.7%10.4%0.3% (Vehicles in thousands) Wholesale vehicle sales3,5113,958(447)(11.3)% 28Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESYears Ended December 31,Favorable/(Unfavorable) Variance Due To20162015% Volume Mix Price Cost Other (Dollars in billions)Total net sales and revenue$119,113$106,744$12,36911.6% $10.8 $0.7 $1.7 $(0.8)EBIT-adjusted$12,388$11,354$1,0349.1% $3.2 $(1.2) $1.7 $(2.2) $(0.4)EBIT-adjusted margin10.4%10.6%(0.2)% (Vehicles in thousands) Wholesale vehicle sales3,9583,55840011.2% GMNA Total Net Sales and Revenue In the year ended December 31, 2017 Total net sales and revenue decreased due primarily to: (1) decreased netwholesale volumes associated with a decrease in Chevrolet passenger car sales and a decrease in off-lease rental car sales; partially offset by (2) favorable mixassociated with a decrease in sales of Chevrolet passenger cars and decreased volumes of off-lease rental car sales; (3) favorable pricing for Majors of $1.4billion, partially offset by unfavorable pricing for carryover vehicles of $0.8 billion; and (4) favorable Other due primarily to the foreign currency effectresulting from the strengthening of the Canadian Dollar against the U.S. Dollar.In the year ended December 31, 2016 Total net sales and revenue increased due primarily to: (1) increased net wholesale volumes reflecting our strategicdecision to reduce daily rental activity, strong retail demand for the Chevrolet Malibu and Spark, full-size trucks and 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 a reduction in rental car activities, partiallyoffset by the Chevrolet Malibu and Spark; partially offset by (4) unfavorable Other due primarily to the foreign currency effect resulting from the weakeningof the Mexican Peso and Canadian Dollar against the U.S. Dollar.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%, 55% and 15% of our GMNA portfolio on a weighted-average basis.In the year ended December 31, 2017 EBIT-adjusted decreased due primarily to: (1) decreased net wholesale volumes; and (2) unfavorable Other dueprimarily to the foreign currency effect resulting from the weakening of the Mexican Peso against the U.S. Dollar; partially offset by (3) favorable Costincluding decreased warranty costs of $1.4 billion, decreased material and freight costs related to carryover vehicles of $0.7 billion, decreased otheremployee related costs of $0.7 billion, decreased advertising costs of $0.3 billion and decreased restructuring charges of $0.2 billion related to the 2016UAW cash severance incentive program, partially offset by increased material costs for Majors of $1.3 billion and increased engineering costs of $0.3 billion;(4) favorable mix; and (5) favorable pricing.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.GM International29Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESYears Ended December 31,Favorable/(Unfavorable) Variance Due To20172016% Volume Mix Price Cost Other (Dollars in billions)Total net sales and revenue$21,920$20,943$9774.7% $0.2$0.2$0.6$—EBIT-adjusted$1,300$767$53369.5% $—$(0.3)$0.6$0.3$(0.2)EBIT-adjusted margin5.9%3.7%2.2% Equity income — AutomotiveChina$1,976$1,973$30.2% EBIT (loss)-adjusted —excluding Equity income$(676)$(1,206)$53043.9% (Vehicles in thousands) Wholesale vehicle sales1,2671,255121.0% Years Ended December 31, Favorable/(Unfavorable) Variance Due To 2016 2015 % Volume Mix Price Cost Other (Dollars in billions)Total net sales and revenue$20,943 $22,970 $(2,027) (8.8)% $(1.7)$0.2$1.2$(1.7)EBIT-adjusted$767 $665 $102 15.3 % $(0.3)$(0.5)$1.1$0.5$(0.7)EBIT-adjusted margin3.7% 2.9% 0.8% Equity income — AutomotiveChina$1,973 $2,057 $(84) (4.1)% EBIT (loss)-adjusted —excluding Equity income$(1,206) $(1,392) $186 13.4 % (Vehicles in thousands) Wholesale vehicle sales1,255 1,372 (117) (8.5)% 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.GMI Total Net Sales and Revenue In the year ended December 31, 2017 Total net sales and revenue increased due primarily to: (1) favorable pricingrelated to carryover vehicles in Argentina and Brazil and in Egypt to mitigate the impact of the weakening Egyptian Pound against the U.S. Dollar; (2)favorable mix driven by the increased sales of Chevrolet Cruze in Brazil and Argentina; and (3) increased wholesale volumes associated with the ChevroletOnix in Brazil and Argentina, partially offset by decreased wholesale volumes across multiple product lines in Asia/Pacific, the Middle East and Africa; (4)flat Other due primarily to the foreign currency effect resulting from the strengthening of the Brazilian Real and Korean Won against the U.S. Dollar, offset bythe depreciation of the Argentinian Peso and Egyptian Pound against the U.S. Dollar and decreased parts and accessories sales in the Middle East.In the year ended December 31, 2016 Total net sales and revenue decreased due primarily to: (1) decreased wholesale volumes across multiple productlines in Egypt, South Africa, the Middle East, Brazil and Venezuela, partially offset by increased sales of the Chevrolet Spark and Malibu in Korea and theMiddle East; and (2) unfavorable Other of $1.7 billion due primarily to the foreign currency effect resulting from the weakening of all currencies across SouthAmerica, the Egyptian Pound and South African Rand against the U.S. Dollar; partially offset by (3) favorable pricing related to carryover vehicles dueprimarily to high inflation in Argentina.GMI EBIT-Adjusted In the year ended December 31, 2017 EBIT-adjusted increased due primarily to: (1) favorable pricing; and (2) favorable Cost due todecreased employee related costs and selling, general and administrative expenses across the region; partially offset by (3) unfavorable mix driven bydecreased high-margin sales in the Middle East.In the year ended December 31, 2016 EBIT-adjusted increased due primarily to: (1) favorable pricing; and (2) favorable Cost due to lower engineeringexpenses and material and freight performance related to carryover vehicles; partially offset by (3) unfavorable mix due primarily to the lack of vehicle salesin Venezuela and decreased sales of full-size trucks and SUVs in the Middle East as a result of a weaker economy due to low oil prices; and (4) unfavorableOther due primarily to the foreign currency effect resulting from the weakening of all currencies across South America, the Egyptian Pound and South AfricanRand against the U.S. Dollar.30Table 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, Chevrolet and Cadillacbrands. In the coming years we plan to leverage our global architectures to increase the number of product offerings under the Buick, Chevrolet and Cadillacbrands 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, 2017 2016 2015Wholesale vehicles including vehicles exported to markets outside of China4,140 4,013 3,794Total net sales and revenue$50,065 $47,150 $44,959Net income$3,984 $4,117 $4,290 December 31, 2017 December 31, 2016Cash and cash equivalents$9,202 $8,197Debt$381 $246GM FinancialYears Ended December 31, 2017 vs. 2016 Change 2016 vs. 2015 Change201720162015 Amount%Amount%Total revenue$12,151$8,983$5,867 $3,16835.3%$3,11653.1%Provision for loan losses$757$644$603 $11317.5%$416.8%Earnings before income taxes-adjusted$1,196$763$679 $43356.7%$8412.4%(Dollars in billions)Average debt outstanding$74.9$54.8$36.2 $20.136.7%$18.651.4%Effective rate of interest paid3.4%3.6%4.0% (0.2)%(0.4)%GM Financial Revenue In the year ended December 31, 2017 Total revenue increased due primarily to increased leased vehicle income of $2.7 billion dueto a larger lease portfolio and increased finance charge income of $0.4 billion due to growth in the retail and commercial finance receivables portfolios.In the year ended December 31, 2016 Total revenue increased due primarily to increased leased vehicle income of $3.1 billion due to a larger leaseportfolio.GM Financial Earnings Before Income Taxes-Adjusted In the year ended December 31, 2017 Earnings before income taxes-adjusted increased dueprimarily to: (1) increased net leased vehicle income of $0.8 billion due primarily to a larger lease portfolio; and (2) increased finance charge income;partially offset by (3) increased interest expense of $0.6 billion due to an increase in average debt outstanding.In the year ended December 31, 2016 Earnings before income taxes-adjusted increased due primarily to: (1) increased net leased vehicle income of $0.8billion due primarily to a larger lease portfolio; partially offset by (2) increased interest expense of $0.5 billion due to an increase in average debtoutstanding; and (3) increased operating expenses of $0.2 billion.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 and future debt issuances. We also maintain access to the capital markets and may issuedebt or equity securities from time to time, which may provide an additional source of liquidity. Our future uses of cash, which may vary from time to timebased on market conditions and other factors, are focused on three objectives: (1) reinvest in our business; (2) maintain a strong investment-grade balancesheet; and (3) return available cash to shareholders. Our known future material uses of cash include, among other possible demands: (1) capital expendituresof approximately $8.5 billion annually as well as payments for engineering and product31Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESdevelopment activities; (2) payments associated with previously announced vehicle recalls, the settlements of the multidistrict litigation and any otherrecall-related contingencies; (3) payments to service debt and other long-term obligations, including discretionary and mandatory contributions to ourpension plans; (4) dividend payments on our common stock that are declared by our Board of Directors; and (5) payments to purchase shares of our commonstock 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 a strong 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. Management reaffirmed and our Board of Directors approved the capital allocation program, which includesreinvesting in our business at an average target ROIC-adjusted rate of 20% or greater, maintaining a strong investment-grade balance sheet, including a targetcash balance of $18 billion, and returning available cash to shareholders.As part of our capital allocation program, we announced in January 2016 that our Board of Directors had authorized a program to purchase up to $4 billionof our common stock before the end of 2017, which was completed in the three months ended September 30, 2017. We also announced in January 2017 thatour Board of Directors had authorized the purchase of up to an additional $5 billion of our common stock with no expiration date, subsequent to completingthe remaining portion of the previously announced programs. We completed $1.5 billion of the $5 billion program in the three months ended December 31,2017. From inception of the program in 2015 through January 30, 2018 we had purchased an aggregate of 299 million shares of our outstanding commonstock under our common stock repurchase program for $10.5 billion. In the year ended December 31, 2017, we returned total cash to shareholders of $6.7billion, consisting of dividends paid on our common stock and purchases of our common stock.In August 2017 we issued $3.0 billion in aggregate principal amount of senior unsecured notes and used the net proceeds to repay the $3.0 billion drawnon our three-year unsecured revolving credit facility to fund the payments to PSA Group, or one or more pension funding vehicles, for the assumed netunderfunded pension liabilities in connection with the sale of the Opel/Vauxhall Business. Refer to Note 14 to our consolidated financial statements foradditional information on the senior unsecured notes.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. Approximately 90% ofour cash and marketable securities were managed within North America and at our regional treasury centers at December 31, 2017. We have used and willcontinue to use 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 mortgage and asset-backed securities. Our investment guidelines,which we may change from time to time, prescribe certain minimum credit worthiness thresholds and limit 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 or better 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 $14.5billion at December 31, 2017 and 2016, which consisted principally of our two primary revolving credit facilities. We did not have any borrowings againstour primary facilities, but had letters of credit outstanding under our sub-facility of $0.4 billion at December 31, 2017 and 2016. GM Financial had access toour revolving credit facilities at December 31, 2017 and 2016 but did not borrow against them. Refer to Note 14 to our consolidated financial statements foradditional information on credit facilities. At December 31, 2017 and 2016 we had intercompany loans from GM Financial of $0.4 billion and $0.3 billion,which consisted primarily of commercial loans to dealers we consolidate, and we had no intercompany loans to GM Financial.32Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESAs a means to access the strong liquidity available in our China JVs, from time to time, we may borrow from our joint ventures to provide additionalliquidity to support our operations and capital investment. In the three months ending March 31, 2018, we expect to borrow approximately $1.3 billion fromSAIC General Motors Corp., Ltd. (SGM) pursuant to a short-term unsecured note payable.The following table summarizes our automotive available liquidity (dollars in billions):December 31, 2017December 31, 2016Cash and cash equivalents$11.2$9.8Marketable securities8.311.8Available liquidity(a)19.621.6Available under credit facilities(b)14.114.2Total automotive available liquidity(a)$33.6$35.8__________(a)Amounts do not add due to rounding.(b)Excludes outstanding letters of credit of $0.2 billion at December 31, 2016 under our primary credit facilities which were transferred to PSA Group at closing.The following table summarizes the changes in our automotive available liquidity (dollars in billions):Year Ended December 31,2017Operating cash flow$13.9Capital expenditures(8.4)Dividends paid and payments to purchase common stock(6.7)Net cash used in investing activities – discontinued operations(a)(3.6)Issuance of senior unsecured notes3.0Other non-operating(0.4)Total change in automotive available liquidity$(2.2)__________(a)Consists primarily of payments to PSA Group, or one or more pension funding vehicles, of $3.4 billion for the assumed net underfunded pension liabilities in connection withthe sale of the Opel/Vauxhall Business, which includes pension funding payments for active employees and the de-risking premium payment of $455 million, partially offsetby proceeds.Automotive Cash Flow (Dollars in Billions)Years Ended December 31, 2017 vs. 2016Change2016 vs. 2015Change201720162015 Operating Activities Income (loss) from continuing operations$(0.8)$8.6$9.0 $(9.4)$(0.4)Depreciation, amortization and impairments charges5.75.15.2 0.6(0.1)Pension and OPEB activities(2.6)(4.2)(1.5) 1.6(2.7)Working capital1.82.20.3 (0.4)1.9Equipment on operating leases(0.3)0.80.5 (1.1)0.3Accrued and other liabilities(2.3)1.0(1.0) (3.3)2.0Income taxes10.9 2.1(2.0)8.84.1GM Financial dividend0.6——0.6—Other0.9(1.1)0.2 2.0(1.3)Net automotive cash provided by operating activities$13.9$14.5$10.7 $(0.6)$3.8In the year ended December 31, 2017 the decrease in Net automotive cash provided by operating activities was due primarily to unfavorable impacts from:(1) decreased Income (loss) from continuing operations partially offset by the add back of $7.3 billion33Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESas a result of U.S. tax reform legislation and the establishment of a $2.3 billion valuation allowance related to the sale of the Opel/Vauxhall Business; (2) adecrease in Accrued and other liabilities due to increased sales allowance payments; (3) a decrease in Equipment on operating leases due to an increase inunits out to daily rental car companies; and (4) a decrease in Working capital due to lower production volumes, partially offset by accelerated cash receiptsfrom GM Financial and other external sources totaling $0.5 billion; partially offset by (5) discretionary contributions of $2.0 billion made to our U.S. hourlypension plan in the year ended December 31, 2016; and (6) an increase in Other due to several insignificant items.In the year ended December 31, 2016 the increase in Net automotive cash provided by operating activities was due primarily to: (1) an increase in Incometaxes due primarily to the reversal of valuation allowances in 2015; (2) an increase in Accrued and other liabilities due primarily to an increase in salesincentives of $1.6 billion; (3) an increase in Working capital due primarily to increased accounts payable due to increased production volumes and decreasedinventories due to lower repurchased rental car activity; partially offset by (4) a decrease in Pension and OPEB activities due primarily to discretionarycontributions of $2.0 billion made to our U.S. hourly pension plan in the year ended December 31, 2016 and pension income from the refinement to thediscount rate methodology for service and interest cost; and (5) a decrease in Other due primarily to foreign exchange and an increase in deposits.Years Ended December 31,2017 vs. 2016Change2016 vs. 2015Change201720162015Investing ActivitiesCapital expenditures$(8.4)$(8.3)$(6.7)$(0.1)$(1.6)Acquisitions and liquidations of marketable securities, net3.5(3.7)0.97.2(4.6)Investment in Lyft— (0.5) — 0.5 (0.5)Acquisition of Cruise— (0.3) — 0.3 (0.3)Other0.20.2——0.2Net automotive cash used in investing activities$(4.7)$(12.6)$(5.8)$7.9$(6.8) Years Ended December 31, 2017 vs. 2016Change 2016 vs. 2015Change 2017 2016 2015 Financing ActivitiesIssuance of senior unsecured notes$3.0$2.0$—$1.0$2.0Payments to purchase common stock(4.5)(2.5)(3.5)(2.0)1.0Dividends paid(2.2)(2.3)(2.2)0.1(0.1)Other(0.5)(0.3)(0.1)(0.2)(0.2)Net automotive cash used in financing activities$(4.2)$(3.1)$(5.8)$(1.1)$2.7Adjusted Automotive Free Cash Flow (Dollars in Billions)34Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIES Years Ended December 31, 2017 2016 2015Net automotive cash provided by operating activities – continuing operations$13.9$14.5$10.7Less: capital expenditures – continuing operations(8.4)(8.3)(6.7)Adjustments Discretionary U.S. pension plan contributions—2.0—U.K. pension plan contribution(a)0.2 — —GM Financial dividend(a)(0.6) — —Total adjustments(0.4) 2.0 —Adjusted automotive free cash flow – continuing operations(b)5.28.24.0Net automotive cash used in operating activities – discontinued operations—(0.1)(0.7)Less: capital expenditures – discontinued operations(0.7)(1.1)(1.0)Adjusted automotive free cash flow(b)$4.5$6.9$2.3__________(a)These cash flows were excluded because they resulted from the sale of the European Business.(b)Amounts do not add due to rounding.Status 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 January 30, 2018: Corporate Revolving CreditFacilities Senior Unsecured OutlookDBRS LimitedBBB BBB N/A StableFitchBBB BBB BBB StableMoody'sInvestment Grade Baa2 Baa3 StableS&PBBB BBB BBB StableRating actions taken by each of the credit rating agencies from January 1, 2017 through January 30, 2018 were as follows: (1) Moody’s upgraded ourrevolving credit facilities rating to Baa2 from Baa3, and revised their outlook to Stable from Positive in January 2017. Also in January 2017 our seniorunsecured bonds were upgraded to Baa3 from Ba1 and remain notched below our revolving credit facilities rating; (2) S&P upgraded our corporate rating,revolving credit facilities rating and senior unsecured rating to BBB from BBB- and revised their outlook to Stable from Positive in January 2017; and (3)Fitch upgraded our corporate rating, revolving credit facilities rating and senior unsecured rating to BBB from BBB– and revised their outlook to Stable fromPositive in June 2017.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 between secured and unsecured debt. In September 2017 GM Financial issued $1.0 billion of Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock, Series A, $0.01 par value, with a liquidation preference of $1,000 per share. The following tablesummarizes GM Financial's available liquidity (dollars in billions): December 31, 2017 December 31, 2016Cash and cash equivalents$4.3 $2.8Borrowing capacity on unpledged eligible assets12.5 8.3Borrowing capacity on committed unsecured lines of credit0.1 0.1Available liquidity$16.9 $11.235Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESIn the year ended December 31, 2017 available liquidity increased due primarily to an increase in cash and additional net borrowing capacity on new andrenewed secured credit facilities, resulting from the issuance of securitizations, unsecured debt and preferred stock.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. We have a support agreement with GM Financial which, among other things, establishes commitments offunding from us to GM Financial. This agreement also provides that we will continue to own all of GM Financial’s outstanding voting shares so long as anyunsecured debt securities remain outstanding at GM Financial. In addition we are required to use our commercially reasonable efforts to ensure GM Financialremains 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, 2017 secured,committed unsecured and uncommitted unsecured credit facilities totaled $26.0 billion, $0.1 billion and $2.4 billion with advances outstanding of $4.7billion, an insignificant amount and $2.4 billion.GM Financial Cash Flow (Dollars in Billions)Years Ended December 31,2017 vs. 2016Change2016 vs. 2015Change201720162015Net cash provided by operating activities$6.5$4.7$2.7$1.8$2.0Net cash used in investing activities$(21.9)$(23.7)$(21.2)$1.8$(2.5)Net cash provided by financing activities$16.1$19.1$17.9$(3.0)$1.2In the years ended December 31, 2017 and 2016 Net cash provided by operating activities increased due primarily to an increase in net leased vehicleincome, partially offset by increased interest expense and operating expenses.In the year ended December 31, 2017 Net cash used in investing activities decreased due primarily to: (1) increased proceeds from the termination of leasedvehicles of $4.1 billion; (2) increased collections and recoveries on retail finance receivables of $3.0 billion; and (3) decreased purchases of leased vehiclesof $0.3 billion; partially offset by (4) increased net purchases of retail finance receivables of $5.5 billion.In the year ended December 31, 2016 Net cash used in investing activities increased due primarily to: (1) increased purchases of leased vehicles of $4.4billion; and (2) increased purchases and funding of finance receivables of $1.9 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, 2017 Net cash provided by financing activities decreased due primarily to an increase in repayments of $12.4 billion and aspecial dividend payment to GM of $0.6 billion, partially offset by an increase in borrowings of $9.0 billion and the issuance of preferred stock of $1.0billion.In the year ended December 31, 2016 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, 2017 and 2016. Refer to Note 17 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. The36Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESfollowing table summarizes aggregated information about our outstanding contractual obligations and other long-term liabilities at December 31, 2017:Payments Due by Period20182019-20202021-20222023 and afterTotalAutomotive debt$2,252$553$54$10,423$13,282Automotive Financing debt24,50233,18513,12510,47781,289Capital lease obligations27618768188719Automotive interest payments(a)6931,2091,1478,45211,501Automotive Financing interest payments(b)2,3732,8021,3191,1447,638Postretirement benefits(c)2432683—514Operating lease obligations, net2223772312061,036Other contractual commitments:Material1,0905221471441,903Marketing84044154311,366Rental car repurchases2,113———2,113Other1,0566121002462,014Total contractual commitments(d)$35,660$40,156$16,248$31,311$123,375 Non-contractual benefits(e)$269 $648 $858 $9,696 $11,471__________(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, 2017.(b)GM Financial interest payments were determined using the interest rate in effect at December 31, 2017 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 2021. These agreements aregenerally renegotiated in the year of expiration. Amounts do not include pension funding obligations, which are discussed in Note 16 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, 2017.(e)Amounts include all expected future payments for both current and expected future service at December 31, 2017 for OPEB obligations for salaried and hourly employeesextending beyond the current North American union contract agreements, workers' compensation and extended disability benefits. Amounts do not include pension fundingobligations, which are discussed in Note 16 to our consolidated financial statements.The table above does not reflect product warranty and related liabilities, certified pre-owned extended warranty and free maintenance of $9.1 billion andunrecognized tax benefits of $1.6 billion due to the uncertainty regarding 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.37Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESIn December 2017 an investment policy study was completed for the U.S. pension plans. As a result of changes to our capital market assumptions, primarilythose related to the fixed income asset class, the weighted-average long-term rate of return on assets increased from 6.2% at December 31, 2016 to 6.6% atDecember 31, 2017. The assumption change related to the fixed income asset class is expected to increase the return on assets by $0.3 billion in 2018. Theexpected long-term rate of return on plan assets used in determining pension expense for non-U.S. plans is determined in a similar manner to the U.S. plans.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 bond yield curve to determine the weighted-average discount rate for the calculation of the present value of cash flows. We apply the individualannual yield curve rates instead of the assumed discount rate to determine the service cost and interest cost, which more specifically links the cash flowsrelated to service cost and interest cost to bonds maturing in their year of payment.We have reviewed the mortality improvement tables published by the Society of Actuaries in the three months ended December 31, 2017 and determinedthat our current assumptions are appropriate to measure our December 31, 2017 U.S. pension plan obligations.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 $4.0 billion and $3.8 billion at December 31, 2017and 2016. The year-over-year change is primarily due to the decrease in discount rates partially offset by assumption changes and the increase in actual returnon assets. At December 31, 2017 $2.4 billion of the 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 fifteen years resulting in amortization expense of $0.2 billion in2018.The underfunded status of the U.S. pension plans decreased by $1.4 billion in the year ended December 31, 2017 to $5.8 billion due primarily to: (1) afavorable effect of actual returns on plan assets of $6.5 billion; (2) other favorable changes including contributions, demographic gains and assumptionchanges of $0.4 billion; partially offset by (3) an unfavorable effect due to a decrease in the discount rate of $3.2 billion; and (4) service and interest cost of$2.3 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 2018Pension Expense Effect onDecember 31,2017 PBO Effect on 2018Pension Expense Effect onDecember 31,2017 PBO25 basis point decrease in discount rate-$100 +$1,780 +$17 +$68825 basis point increase in discount rate+$90 -$1,700 -$12 -$65225 basis point decrease in expected rate of return on assets+$150 N/A +$35 N/A25 basis point increase in expected rate of return on assets-$150 N/A -$35 N/A__________(a)The sensitivity does not include the effects of the individual annual yield curve rates applied for the calculation of the service and interest cost.Refer to Note 16 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.38Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESAt December 31, 2017 total deferred tax assets were $30.7 billion and valuation allowances against those deferred tax assets were $6.7 billion. Refer toNote 18 to our consolidated financial statements for additional information on the composition of these valuation allowances and for information on theimpact of U.S. tax reform legislation.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 which typically range from two to five years. At the beginning of the lease anestimate is made of the expected residual value at the end of the lease term. The expected residual value is based on third-party data which considers inputsincluding recent auction values, the expected future volume of returning leased vehicles, used car prices, manufacturer incentive programs and fuel prices.The customer is obligated to make payments during the term of the lease for the difference between the purchase price and the contract residual value plus amoney factor. Since the customer is not obligated to purchase the vehicle at the end of the contract, we are exposed to a risk of loss to the extent the customerreturns the vehicle at the end of the lease term and the value of the vehicle is below the expected residual value estimated at the inception of the lease.The following table summarizes vehicles included in GM Financial equipment on operating leases, net (vehicles in thousands):December 31, 2017December 31, 2016Cars450420Trucks285224Crossovers818604SUVs9975Total1,6521,323At December 31, 2017 the estimated residual value of our leased assets at the end of the lease term was $30.4 billion. We periodically review the adequacyof the depreciation rates. If we believe that the expected residual values of the leased assets have changed, we revise the depreciation rate to ensure the netinvestment in the operating leases reflects the revised estimate of expected residual value at the end of the lease term. Such adjustments to the depreciationrate would result in a change in depreciation expense on leased assets which is recorded prospectively on a straight-line basis. The following table illustratesthe effect of a 1% change in the estimated residual values at December 31, 2017, which would increase or decrease depreciation expense over the remainingterm of our operating lease portfolio, holding all other assumptions constant: Impact to DepreciationExpenseCars$57Trucks72Crossovers137SUVs38Total$304We also evaluate the carrying value of the operating leases aggregated by vehicle make, year and model into leased asset groups, check for indicators ofimpairment and test for impairment to the extent necessary in accordance with applicable accounting standards. A leased asset group is considered impairedif impairment indicators exist and the undiscounted expected future cash flows (including the expected residual value) are lower than the carrying value ofthe asset group. We believe no impairment indicators existed during 2017, 2016 or 2015.Product 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.39Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESThe 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 campaigns, the number of vehicles per recall campaign, the assumed number of vehicles that will be brought in by customers for repair(take rate) and the cost per vehicle for each recall campaign. These estimates consider the nature, frequency and magnitude of historical recall campaigns.Costs associated with recall campaigns not accrued at the time of vehicle sale are estimated based on the estimated cost of repairs and the estimated vehiclesto be repaired. Depending on part availability and time to complete repairs we may, from time to time, offer courtesy transportation at no cost to ourcustomers. These estimates are re-evaluated on an ongoing basis and based on the best available information. Revisions are made when necessary based onchanges in these factors.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 dealer inventory eligible for the incentive program isdetermined and a reduction of Automotive net sales and revenue is recorded in the period in which the program is announced. If the actual number of affectedvehicles differs from this estimate, or if a different mix of incentives is actually paid, the reduction in Automotive net sales and revenue due to incentivescould be affected. There are a multitude of inputs affecting the calculation of the estimate for sales incentives and an increase or decrease in any of thesevariables could have a significant effect on recorded sales incentives. On January 1, 2018, the date of our adoption of Accounting Standards Update (ASU)2014-09, "Revenue from Contracts with Customers" (ASU 2014-09), sales incentives began to be recorded at the time of sale rather than at the later of sale orannouncement. This change affected our processes for estimating and recording sales incentives. Refer to Note 2 to our consolidated financial statements foradditional information on the adoption ASU 2014-09.Forward-Looking Statements In this 2017 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 analysis 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 timely fund and introduce new and improved vehiclemodels that are able to attract a sufficient number of consumers; (3) the success of our crossovers, SUVs and full-size pick-up trucks; (4) our ability to reducethe costs associated with the manufacture and sale of electric vehicles; (5) global automobile market sales volume, which can be volatile; (6) our significantbusiness in China which subjects us to unique operational, competitive and regulatory risks; (7) our joint ventures, which we cannot operate solely for ourbenefit and over which we may have limited control; (8) the international scale and footprint of our operations which exposes us to a variety of political,economic and regulatory risks, including the risk of changes in government leadership and laws (including tax laws), economic tensions betweengovernments and changes in international trade policies, new barriers to entry and changes to or withdrawals from free trade agreements, changes in foreignexchange rates, economic downturns in foreign countries, differing local product preferences and product requirements, compliance with U.S. and foreigncountries' export controls and economic sanctions, differing labor40Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESregulations and difficulties in obtaining financing in foreign countries; (9) any significant disruption at one of our manufacturing facilities could disrupt ourproduction schedule; (10) the ability of our suppliers to deliver parts, systems and components without disruption and at such times to allow us to meetproduction schedules; (11) prices of raw materials used by us and our suppliers; (12) our highly competitive industry, which is characterized by excessmanufacturing capacity and the use of incentives and the introduction of new and improved vehicle models by our competitors; (13) the possibility thatcompetitors may independently develop products and services similar to ours and there are no guarantees that our intellectual property rights would preventcompetitors from independently developing or selling those products or services; (14) our ability to manage risks related to security breaches and otherdisruptions to our vehicles, information technology networks and systems; (15) our ability to comply with extensive laws and regulations applicable to ourindustry, including those regarding fuel economy and emissions; (16) costs and risks associated with litigation and government investigations; (17) ourability to comply with the terms of the DPA; (18) the cost and effect on our reputation of product safety recalls and alleged defects in products and services;(19) our ability to successfully and cost-effectively restructure our operations in various countries with minimal disruption; (20) our ability to realizeproduction efficiencies and to achieve reductions in costs; (21) our continued ability to develop captive financing capability through GM Financial; and(22) significant increases in our pension expense or projected pension contributions resulting from changes in the value of plan assets or the discount rateapplied to value the pension liabilities or mortality or other assumption changes. A further list and description of these risks, uncertainties and other factorscan be found in this 2017 Form 10-K and our subsequent filings with the SEC.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 RiskThe overall financial risk management program is under the responsibility of the Chief Financial Officer with support from the Financial Risk Councilwhich reviews and, where appropriate, approves strategies to be pursued to mitigate these risks. The Financial Risk Council comprises members of ourmanagement and functions under the oversight of the Audit Committee and Finance Committee of the Board of Directors. The Audit Committee and FinanceCommittee assist and guide the Board of Directors in its oversight of our financial and risk management strategies. A risk management control framework isutilized to monitor the strategies, risks and related hedge positions in accordance with the policies and procedures approved by the Financial Risk Council.Our financial risk management policy is designed to protect against risk arising from extreme adverse market movements on our key exposures.Automotive The following analyses provide quantitative information regarding exposure to foreign currency exchange rate risk and interest rate risk.Sensitivity analysis is used to measure the potential loss in the fair value of financial instruments with exposure to market risk. The models used assumeinstantaneous, parallel shifts in exchange rates and interest rate yield curves. For options and other instruments with nonlinear returns, models appropriate tothese types of instruments are utilized to determine the effect of market shifts. There are certain shortcomings inherent in the sensitivity analyses presented,due primarily to the assumption that interest rates change in a parallel fashion and that spot exchange rates change instantaneously. In addition the analysesare unable to reflect the complex market reactions that normally would arise from the market shifts modeled and do not contemplate the effects of correlationsbetween foreign currency pairs, offsetting long-short positions in currency pairs or other exposures such as interest rates which may significantly reduce thepotential 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, 2017 our most significant foreign currency exposures were the U.S. Dollar/Canadian Dollar, U.S.Dollar/Mexican Peso, Euro/U.S. Dollar, U.S. Dollar/Chinese Yuan, Australian Dollar/U.S. Dollar and U.S. Dollar/Argentine Peso. Derivative instruments suchas foreign currency forwards, swaps and options are used primarily to hedge exposures with respect to forecasted revenues, costs and commitmentsdenominated in foreign currencies. Such contracts had remaining maturities of up to 12 months at December 31, 2017. The net fair value liability of financial instruments with exposure to foreign currency risk was $0.8 billion at December 31, 2017 and 2016. These amountsare calculated utilizing a population of foreign currency exchange derivatives and foreign currency denominated debt and exclude the offsetting effect offoreign currency cash, cash equivalents and other assets. The potential loss in fair value for such financial instruments from a 10% adverse change in allquoted foreign currency exchange rates would have been $0.1 billion and $0.2 billion at December 31, 2017 and 2016.41Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESWe 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. We had foreign currency derivatives in asset positions with notional amounts of $2.8 billion and $5.3 billion and in liabilitypositions with notional amounts of $1.2 billion and $0.5 billion at December 31, 2017 and 2016. The fair value of these derivative financial instruments wasinsignificant. Fluctuations in foreign currency exchange rates can therefore create volatility in the results of operations and may adversely affect our financialcondition.The following table summarizes the amounts of automotive foreign currency translation and transaction and remeasurement (gains) losses: Years Ended December 31, 2017 2016Translation (gains) losses recorded in Accumulated other comprehensive loss$(275) $176Transaction and remeasurement losses recorded in earnings$43 $225Interest 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. We did not have any interest rate swap positions to manage interest rate exposures in our automotiveoperations at December 31, 2017 and 2016. The fair value liability of debt and capital leases was $15.1 billion and $11.4 billion at December 31, 2017 and2016. The potential increase in fair value resulting from a 10% decrease in quoted interest rates would have been $0.7 billion and $0.5 billion atDecember 31, 2017 and 2016. We had marketable securities of $8.3 billion and $11.8 billion classified as available-for-sale at December 31, 2017 and 2016. The potential decrease infair value from a 50 basis point increase in interest rates would have had an insignificant effect at December 31, 2017 and 2016.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 reflect prevailing market interest rates. To help mitigate interest rate risk or mismatched funding, GM Financialmay employ hedging strategies to lock in the interest 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.Quantitative Disclosure We have historically presented a quantitative measure of our interest rate risk in a tabular disclosure of our interest-sensitive assetsand liabilities. With the expansion of our International and North America Asset Liability Committees in 2015 to incorporate more asset-liabilitymanagement strategies, we now measure the sensitivity of our net interest income to changes in interest rates by using interest rate scenarios that assume ahypothetical, instantaneous parallel shift of one hundred basis points in all interest rates across all maturities, as well as a base case that assumes that ratesperform at the current market forward curve. However, interest rate changes are rarely instantaneous or parallel and rates could move more or less than the onepercentage point assumed in our analysis. Therefore, the actual impact to economic value of equity could be higher or lower than the results detailed in thetable below. These interest rate scenarios are purely hypothetical and do not represent our view of future interest rate movements.Under these interest rate scenarios, we are asset-sensitive, meaning that we expect more assets than liabilities to re-price within the next twelve months.During a period of rising interest rates, the interest earned on our assets will increase more than the interest paid on our debt, which would initially increaseour net interest income. During a period of falling interest rates, we would expect42Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESour net interest income to initially decrease. The following table presents our net interest income sensitivity to interest rate movement: Years Ended December 31, 2017 2016One hundred basis points instantaneous increase in interest rates$19.4 $(43.9)One hundred basis points instantaneous decrease in interest rates(a)$(19.4) $43.9__________(a)Net interest income sensitivity given a one hundred basis point decrease in interest rates requires an assumption of negative interest rates in markets where existing interestrates are below one percent.Additional Model Assumptions The sensitivity analysis presented is our best estimate of the effect of the hypothetical interest rate scenarios; however, ouractual results could differ. Our estimates are also based on assumptions including the amortization and prepayment of the finance receivable portfolio,originations of finance receivables and leases, refinancing of maturing debt, replacement of maturing derivatives and exercise of options embedded in debtand derivatives. Our prepayment projections are based on historical experience. If interest rates or other factors change, our actual prepayment experiencecould be different than projected.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.GM 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 $2.8 billion and an insignificant amount and in liability positionswith notional amounts of an insignificant amount and $0.8 billion at December 31, 2017 and 2016. The fair value of these derivative financial instrumentswas insignificant.The following table summarizes GM Financial's foreign currency translation and transaction and remeasurement (gains) losses: Years Ended December 31, 2017 2016Translation (gains) losses recorded in Accumulated other comprehensive loss$(474) $144Transaction and remeasurement losses recorded in earnings$9 $4* * * * * * *43Table of ContentsREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the Board of Directors of General Motors Company:Opinion on Internal Control over Financial ReportingWe have audited the internal control over financial reporting of General Motors Company and subsidiaries (the "Company") as of December 31, 2017,based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the TreadwayCommission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31,2017, based on criteria established in Internal Control – Integrated Framework (2013) issued by COSO.We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidatedfinancial statements as of and for the year ended December 31, 2017, of the Company and our report dated February 6, 2018 expressed an unqualifiedopinion on those financial statements.Basis for OpinionThe Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness ofinternal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Ourresponsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firmregistered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and theapplicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining anunderstanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. Webelieve that our audit provides a reasonable basis for our opinion.Definition and Limitations of Internal Control over Financial ReportingA company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal controlover financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are beingmade only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention ortimely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation ofeffectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliancewith the policies or procedures may deteriorate./s/ DELOITTE & TOUCHE LLPDetroit, MichiganFebruary 6, 201844Table of ContentsREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the Board of Directors of General Motors Company:Opinion on the Financial StatementsWe have audited the accompanying Consolidated Balance Sheets of General Motors Company and subsidiaries (the "Company") as of December 31, 2017and 2016, the related Consolidated Statements of Income, Comprehensive Income, Cash Flows, and Equity for each of the three years in the period endedDecember 31, 2017, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in allmaterial respects, the financial position of the Company as of December 31, 2017 and 2016, and the results of its operations and its cash flows for each of thethree years in the period ended December 31, 2017, in conformity with accounting principles generally accepted in the United States of America.We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company'sinternal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control – Integrated Framework (2013) issued bythe Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 6, 2018 expressed an unqualified opinion on theCompany's internal control over financial reporting.Basis for OpinionThese financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financialstatements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Companyin accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing proceduresto assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also includedevaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financialstatements. We believe that our audits provide a reasonable basis for our opinion./s/ DELOITTE & TOUCHE LLPDetroit, MichiganFebruary 6, 2018We have served as the Company's auditor since 1918.45Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESItem 8. Financial Statements and Supplementary DataCONSOLIDATED INCOME STATEMENTS(In millions, except per share amounts) Years Ended December 31, 201720162015Net sales and revenueAutomotive$133,449$140,205$129,864GM Financial12,1398,9795,861Total net sales and revenue145,588149,184135,725Costs and expensesAutomotive cost of sales114,869120,499112,995GM Financial interest, operating and other expenses11,1288,3695,304Automotive selling, general and administrative expense9,57510,35411,888Total costs and expenses135,572139,222130,187Operating income10,0169,9625,538Automotive interest expense575563423Interest income and other non-operating income, net290327614Gain on extinguishment of debt——449Equity income (Note 8)2,1322,2822,193Income before income taxes11,86312,0088,371Income tax expense (benefit) (Note 18)11,5332,739(1,219)Income from continuing operations3309,2699,590Income (loss) from discontinued operations, net of tax (Note 3)(4,212)(1)25Net income (loss)(3,882)9,2689,615Net loss attributable to noncontrolling interests1815972Net income (loss) attributable to stockholders$(3,864)$9,427$9,687 Net income (loss) attributable to common stockholders$(3,880) $9,427 $9,687 Earnings per share (Note 21) Basic earnings per common share – continuing operations$0.23$6.12$6.09Basic earnings (loss) per common share – discontinued operations$(2.88)$—$0.02Basic earnings (loss) per common share$(2.65)$6.12$6.11Weighted-average common shares outstanding – basic1,465 1,540 1,586 Diluted earnings per common share – continuing operations$0.22$6.00$5.89Diluted earnings (loss) per common share – discontinued operations$(2.82)$—$0.02Diluted earnings (loss) per common share$(2.60)$6.00$5.91Weighted-average common shares outstanding – diluted1,492 1,570 1,640CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(In millions) Years Ended December 31, 201720162015Net income (loss)$(3,882)$9,268$9,615Other comprehensive income (loss), net of tax (Note 20)Foreign currency translation adjustments and other747(384)(955)Defined benefit plans570(969)1,011Other comprehensive income (loss), net of tax1,317(1,353)56Comprehensive income (loss)(2,565)7,9159,671Comprehensive loss attributable to noncontrolling interests2021853Comprehensive income (loss) attributable to stockholders$(2,545)$8,133$9,724Reference should be made to the notes to consolidated financial statements.46Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In millions, except per share amounts) December 31, 2017 December 31, 2016ASSETS Current Assets Cash and cash equivalents$15,512 $12,574Marketable securities (Note 4)8,313 11,841Accounts and notes receivable (net of allowance of $278 and $212)8,164 8,700GM Financial receivables, net (Note 5; Note 12 at VIEs)20,521 16,127Inventories (Note 6)10,663 11,040Equipment on operating leases, net (Note 7)1,106 1,110Other current assets (Note 4; Note 12 at VIEs)4,465 3,633Current assets held for sale (Note 3)— 11,178Total current assets68,744 76,203Non-current Assets GM Financial receivables, net (Note 5; Note 12 at VIEs)21,208 17,001Equity in net assets of nonconsolidated affiliates (Note 8)9,073 8,996Property, net (Note 9)36,253 32,603Goodwill and intangible assets, net (Note 11)5,849 6,149Equipment on operating leases, net (Note 7; Note 12 at VIEs)42,882 34,342Deferred income taxes (Note 18)23,544 33,172Other assets (Note 4; Note 12 at VIEs)4,929 3,849Non-current assets held for sale (Note 3)— 9,375Total non-current assets143,738 145,487Total Assets$212,482 $221,690LIABILITIES AND EQUITY Current Liabilities Accounts payable (principally trade)$23,929 $23,333Short-term debt and current portion of long-term debt (Note 14) Automotive2,515 1,060GM Financial (Note 12 at VIEs)24,450 22,737Accrued liabilities (Note 13)25,996 25,893Current liabilities held for sale (Note 3)— 12,158Total current liabilities76,890 85,181Non-current Liabilities Long-term debt (Note 14) Automotive10,987 9,500GM Financial (Note 12 at VIEs)56,267 41,826Postretirement benefits other than pensions (Note 16)5,998 5,803Pensions (Note 16)13,746 15,264Other liabilities (Note 13)12,394 12,415Non-current liabilities held for sale (Note 3)— 7,626Total non-current liabilities99,392 92,434Total Liabilities176,282 177,615Commitments and contingencies (Note 17) Equity (Note 20) Common stock, $0.01 par value14 15Additional paid-in capital25,371 26,983Retained earnings17,627 26,168Accumulated other comprehensive loss(8,011) (9,330)Total stockholders’ equity35,001 43,836Noncontrolling interests1,199 239Total Equity36,200 44,075Total Liabilities and Equity$212,482 $221,690Reference should be made to the notes to consolidated financial statements.47Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(In millions) Years Ended December 31,201720162015Cash flows from operating activitiesIncome from continuing operations$330$9,269$9,590Depreciation, amortization and impairment charges12,2619,8197,487Foreign currency remeasurement and transaction losses52229806Undistributed earnings of nonconsolidated affiliates, net(132)(15)(145)Pension contributions and OPEB payments(1,636)(3,454)(1,587)Pension and OPEB (income) expense, net(934)(769)83Provision (benefit) for deferred taxes10,8802,228(2,046)Change in other operating assets and liabilities (Note 25)(3,015)580(1,208)Other operating activities(468)(894)(370)Net cash provided by operating activities – continuing operations17,33816,99312,610Net cash used in operating activities – discontinued operations(10)(386)(841)Net cash provided by operating activities17,32816,60711,769Cash flows from investing activitiesExpenditures for property(8,453)(8,384)(6,813)Available-for-sale marketable securities, acquisitions(5,503)(15,182)(8,113)Trading marketable securities, acquisitions—(262)(1,250)Available-for-sale marketable securities, liquidations9,00710,8718,463Trading marketable securities, liquidations—8721,758Acquisition of companies/investments, net of cash acquired(41)(804)(927)Purchases of finance receivables, net(19,325)(14,378)(13,888)Principal collections and recoveries on finance receivables12,5789,8998,548Purchases of leased vehicles, net(19,180)(19,495)(15,096)Proceeds from termination of leased vehicles6,6672,5541,095Other investing activities17816215Net cash used in investing activities – continuing operations(24,072)(34,147)(26,208)Net cash used in investing activities – discontinued operations (Note 3)(3,500)(1,496)(1,502)Net cash used in investing activities(27,572)(35,643)(27,710)Cash flows from financing activitiesNet decrease in short-term debt(140)(282)(61)Proceeds from issuance of debt (original maturities greater than three months)52,18742,03631,547Payments on debt (original maturities greater than three months)(33,592)(20,727)(13,469)Payments to purchase common stock(4,492)(2,500)(3,520)Proceeds from issuance of GM Financial preferred stock985——Dividends paid(2,233)(2,368)(2,242)Other financing activities(305)(163)(159)Net cash provided by financing activities – continuing operations12,41015,99612,096Net cash provided by financing activities – discontinued operations1741,0811,512Net cash provided by financing activities12,58417,07713,608Effect of exchange rate changes on cash, cash equivalents and restricted cash348(213)(1,524)Net increase (decrease) in cash, cash equivalents and restricted cash2,688(2,172)(3,857)Cash, cash equivalents and restricted cash at beginning of period15,16017,33221,189Cash, cash equivalents and restricted cash at end of period$17,848$15,160$17,332 Cash, cash equivalents and restricted cash – continuing operations at end of period (Note 4)$17,848$14,487$16,588Cash, cash equivalents and restricted cash – discontinued operations at end of period$—$673$744Significant Non-cash Investing and Financing ActivityNon-cash property additions – continuing operations$3,996$3,897$3,970Non-cash property additions – discontinued operations$—$868$706Non-cash business acquisition – continuing operations (Note 10)$—$290$—Non-cash proceeds on sale of discontinued operations (Note 3)$808$—$—Reference should be made to the notes to consolidated financial statements.48Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF EQUITY(In millions) Common Stockholders’NoncontrollingInterestsTotal EquityCommonStockAdditionalPaid-inCapitalRetainedEarningsAccumulated OtherComprehensive LossBalance at January 1, 2015$16$28,937$14,577$(8,073)$567$36,024Net income——9,687—(72)9,615Other comprehensive income———371956Purchase 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————1313Balance at December 31, 20151527,60720,285(8,036)45240,323Net 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————3636Balance at December 31, 20161526,98326,168(9,330)23944,075Net loss——(3,864)—(18)(3,882)Other comprehensive income———1,319(2)1,317Purchase of common stock(1)(2,063)(2,428)——(4,492)Exercise of common stock warrants—43———43Issuance of GM Financial preferred stock————985985Stock based compensation—468(34)——434Cash dividends paid on common stock——(2,215)——(2,215)Dividends declared or paid to noncontrolling interests————(18)(18)Other—(60)——13(47)Balance at December 31, 2017$14$25,371$17,627$(8,011)$1,199$36,200Reference should be made to the notes to consolidated financial statements.49Table 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 continuing operations through the followingsegments: GMNA, GMI 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.On July 31, 2017 we closed the sale of our Opel and Vauxhall businesses and certain other assets in Europe (the Opel/Vauxhall Business) to Peugeot, S.A.(PSA Group). On October 31, 2017 we closed the sale of our European financing subsidiaries and branches (the Fincos, and together with the Opel/VauxhallBusiness, the European Business) to Banque PSA Finance S.A. and BNP Paribas Personal Finance S.A. The European Business is presented as discontinuedoperations in our consolidated financial statements for all periods presented. The assets and liabilities of the European Business are presented as held for salein our consolidated financial statements as of December 31, 2016. Unless otherwise indicated, information in these notes to the consolidated financialstatements relates to our continuing operations. Refer to Note 3 for additional details regarding the disposal of the European Business.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 that 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.50Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)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 consolidated balance sheets when the related finance receivables are sold, chargedoff or paid in full. Accrual of finance charge income on retail finance receivables is generally suspended on accounts that are more than 60 days delinquent,accounts in bankruptcy and accounts in repossession. Payments received on nonaccrual loans are first applied to any fees due, then to any interest due andthen any remaining amounts are recorded to principal. Interest accrual generally resumes once an account has received payments bringing the delinquency toless than 60 days past due. Accrual of finance charge income on commercial finance receivables is generally suspended on accounts that are more than 90days delinquent, upon receipt of a bankruptcy notice from a borrower, or where reasonable doubt exists about the full collectability of contractually agreedupon principal and interest. Payments received on nonaccrual loans are first applied to principal. Interest accrual resumes once an account has receivedpayments bringing the account fully current and collection of contractual principal and interest is reasonably assured (including amounts previously chargedoff).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 $4.3 billion, $4.6 billion and $4.4 billion in the years ended December 31, 2017, 2016 and 2015.Research and Development Expenditures Research and development expenditures, which are expensed as incurred in Automotive cost of sales, were $7.3billion, $6.6 billion and $6.0 billion in the years ended December 31, 2017, 2016 and 2015. We enter into cost sharing arrangements with third parties ornonconsolidated affiliates for product-related research, engineering, design and development activities. Cost sharing payments and fees related to thesearrangements are presented in Automotive cost of sales.Cash Equivalents and Restricted Cash Cash equivalents are defined as short-term, highly-liquid investments with original maturities of 90 days or less. 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 aretransferred in 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 using51Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)prices from a pricing service, pricing models, quoted prices of securities with similar characteristics or discounted cash flow models. These prices representnon-binding quotes. Our pricing service utilizes industry-standard pricing models that consider various inputs. We conduct an annual review of our pricingservice and believe the prices received from our pricing 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.Accounts and Notes Receivable Accounts and notes receivable primarily consists of amounts that are due and payable from our customers for the sale ofvehicles, parts, and accessories. We evaluate the collectability of receivables each reporting period and record an allowance for doubtful accountsrepresenting our estimate of probable losses. Additions to the allowance are charged to bad debt expense reported in Automotive selling, general andadministrative expense and were insignificant in the years ended December 31, 2017, 2016 and 2015. GM Financial Receivables Finance receivables are carried at amortized cost, net of allowance for loan losses. GM Financial uses a combination offorecasting models and management judgment to determine the collective allowance for loan losses. Factors that are considered when estimating thecollective allowance include historical delinquency migration to loss, probability of default and loss given default. The loss confirmation period is a keyassumption within the models and represents the average amount of time from when a loss event first occurs to when the receivable is charged off. GMFinancial 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, supplies, work in process 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.Equipment on operating leases, net consists of vehicle leases to retail customers with lease terms of two to five years and vehicles leased to rental carcompanies with lease terms that average seven months. We are exposed to changes in the residual values of these assets. The residual values representestimates of the values of the leased vehicles at the end of the lease contracts and are determined based on forecasted auction proceeds when there is a reliablebasis to make such a determination. Realization of the residual values is dependent on the future ability to market the vehicles under prevailing marketconditions. The adequacy of the estimate of the residual value is evaluated over the life of the lease and adjustments may be made to the extent the expectedvalue of the vehicle at lease termination changes. Adjustments may be in the form of revisions to the depreciation rate or recognition of an impairmentcharge. Impairment is determined to exist if an impairment indicator exists and the expected future cash flows, which include estimated residual values, arelower than the carrying amount of a leased vehicle asset group. If the carrying amount52Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)is considered impaired an impairment charge is recorded for the amount by which the carrying amount exceeds fair value of the leased vehicle asset group.Fair value is determined primarily using the anticipated cash flows, 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 costs 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 equity method investments are recorded in Equity income. Impairment charges relatedto 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 depreciable property using the straight-line method. Leasehold improvements are amortizedover the period of lease or the life of the asset, whichever is shorter. The amortization of the assets under capital leases is included in depreciation expense.Upon retirement or disposition of property, plant and equipment, the cost and related accumulated depreciation are eliminated and any resulting gain or lossis recorded in earnings. Impairment charges related to property are recorded in Automotive cost of sales, Automotive selling, general and administrativeexpense 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 not amortized but rather tested for impairment annually on October 1 or when events occur or circumstances change that would triggersuch a review. A multi-step impairment test is used to identify potential goodwill impairment. Impairment exists when the carrying amount of goodwillexceeds its implied fair value. Because the fair value of goodwill can be measured only as a residual amount and cannot be determined directly we calculatethe implied goodwill for those reporting units failing Step 1 in the same manner that goodwill is recognized in a business combination pursuant toAccounting 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. Amortization ofdeveloped technology and intellectual property is recorded in Automotive cost of sales. Amortization of brand names, customer relationships and our dealernetworks is recorded in Automotive selling, general and administrative expense or GM Financial interest, operating and other expenses. Impairment chargesrelated to intangible assets are recorded in Automotive selling, general and administrative expense or Automotive cost of sales.Valuation of Long-Lived Assets The carrying amount of long-lived assets and finite-lived intangible assets to be held and used in the business is 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 flows53Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)discounted at a rate commensurate with the risk involved. Long-lived assets to be disposed of other than by sale are considered held for use until disposition.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.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 92% of the non-U.S. pension benefit obligation at December 31,2017. 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.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.54Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)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, PSUs and stock options. We measure and record compensation expense based on thefair value of our common stock on the date of grant for RSUs, RSAs and PSUs with performance conditions and the grant date fair value of stock options andPSUs with market conditions are determined utilizing a lattice model or the Black-Scholes formula. Compensation cost for awards that do not have anestablished accounting grant 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, PSUs and service-based stock options on a straight-line basis over the entire vesting period, or for retirement eligible employees over the requisiteservice period. We use the graded vesting method to record compensation cost for stock options with market conditions over the lesser of the vesting periodor the time period an employee becomes eligible to retain the award at retirement. The liability for stock incentive plan awards settled in cash is remeasuredto 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 criteria, we recognize the largest amountof tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. We record interest and penalties onuncertain 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 date55Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)and any resulting translation adjustments are included in Accumulated other comprehensive loss. The assets and liabilities of foreign subsidiaries whoselocal currency is not their functional currency are remeasured from their local currency to their functional currency and then translated to U.S. Dollars.Revenues and expenses are translated into U.S. Dollars using the average exchange rates prevailing for each period presented.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 $52 million, $229 million and $806 million in the yearsended December 31, 2017, 2016 and 2015.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.Automotive We utilize options, swaps and forward contracts to manage foreign currency, commodity price and interest rate risks. The change in fair valueof option and forward contracts not designated as hedges is recorded in Interest income and other non-operating income, net. Cash flows for all derivativefinancial instruments are classified in cash flows from operating activities.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.We estimate the fair value of the PSA warrants using a Black-Scholes formula. The significant inputs to the model include the PSA stock price and theestimated dividend yield. The estimated dividend yield is adjusted based on the terms of the Agreement. Under the terms of the Agreement upon exercise ofthe warrants we are entitled to receive any dividends by PSA between the issuance date and the conversion date. Gains or losses as a result of the change inthe fair value of the PSA warrants are recorded in Interest income and other non-operating income, net.Automotive Financing - GM Financial GM Financial utilizes interest rate derivative instruments to manage interest rate risk and foreign currencyderivative instruments to manage foreign currency risk. The change in fair value of the derivative instruments 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.Certain interest rate swap agreements have been designated as fair value hedges of fixed-rate debt. The risk being hedged is the risk of changes in the fairvalue of the hedged debt attributable to changes in the benchmark interest rate. If the swap has been designated as a fair value hedge, the changes in the fairvalue of the hedged debt are recorded in GM Financial interest, operating and other expenses. The change in fair value of the related derivative (excludingaccrued interest) is also recorded in GM Financial interest, operating and other expenses.Certain interest rate swap and foreign currency swap agreements have been designated as cash flow hedges. The risk being hedged is the foreign currencyand interest rate 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 GM Financial interest, operating and other expenseswhen the hedged item affects earnings. Any ineffective portion is recorded in GM Financial interest, operating and other expenses in the period ofremeasurement.Accounting Standards Not Yet Adopted In May 2014 the Financial Accounting Standards Board (FASB) issued ASU 2014-09, which requires us torecognize revenue when a customer obtains control rather than when we have transferred substantially all risks and rewards of a good or service and requiresexpanded disclosures. ASU 2014-09, as amended, became effective for us on January 1, 2018. ASU 2014-09 affected the amount and timing of certainrevenue related transactions primarily resulting from the earlier recognition of certain sales incentives and fixed fee technology arrangements. Upon adoptionof ASU 2014-09 sales incentives are recorded at the time of sale rather than at the later of sale or announcement and fixed fee technology arrangements arerecognized when access to intellectual property is granted instead of over the contract period. Certain transactions with daily rental car companies may alsoqualify to be accounted for as a sale as opposed to the current accounting as an operating lease. We56Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)adopted the provisions of ASU 2014-09 on a modified retrospective basis through a cumulative adjustment to Equity. The adoption impact of ASU 2014-09will be a reduction to Equity of approximately $1.0 billion effective 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 equity investments that are not accounted for under the equity method of accounting to be measured at fair value with changes recognized in Netincome and which updates certain presentation and disclosure requirements. ASU 2016-01 became effective for us beginning January 1, 2018 and required acumulative-effect adjustment for certain items upon adoption. The adoption of ASU 2016-01 was not material to 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. We are continuing toassess the impact of ASU 2016-02 as we proceed with implementation activities to permit adoption on January 1, 2019. We expect the primary impact to ourconsolidated financial position upon adoption will be the recognition, on a discounted basis, of our minimum commitments under noncancelable operatingleases on our consolidated balance sheets resulting in the recording of right of use assets and lease obligations. Our current minimum commitments undernoncancelable operating leases are disclosed in Note 17.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. Credit losses under the new model will consider relevant information about past events, current conditionsand reasonable and supportable forecasts, resulting in recognition of lifetime expected credit losses by GM Financial upon loan origination as compared toour current accounting that recognizes credit losses as incurred. We are currently evaluating new processes to calculate credit losses in accordance with ASU2016-13 that, once completed, will determine the impact on our consolidated financial statements which at the date of adoption will increase the allowancefor credit losses with a resulting negative adjustment to Retained earnings.In August 2016 the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Payments" (ASU 2016-15), clarifying guidance on the classification of certain cash receipts and payments in the statement of cash flows. The adoption of ASU 2016-15 on January1, 2018 did not have a material impact on our consolidated financial statements.In March 2017 the FASB issued ASU 2017-07, "Compensation – Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Costand Net Periodic Postretirement Benefit Cost" (ASU 2017-07), which requires that the service cost component of net periodic pension and OPEB (income)expense be presented in the same income statement line item as other employee compensation costs, while the remaining components of net periodic pensionand OPEB (income) expense are to be presented outside operating income. ASU 2017-07 became effective for us on a retrospective basis on January 1, 2018and will result in a decrease to Operating income and an increase to Interest income and other non-operating income, net of $1.3 billion for the years endedDecember 31, 2017 and 2016.In August 2017 the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities"(ASU 2017-12), which simplifies the application of hedge accounting and more closely aligns hedge accounting with companies' risk management strategiesthereby making more hedging strategies eligible for hedge accounting. ASU 2017-12 permits hedge accounting for specific risks in hedging relationshipsinvolving nonfinancial risk and interest rate risk. The simplifications to the application of hedge accounting may result in the future expansion of our use ofhedge accounting. ASU 2017-12 became effective for us on January 1, 2018. ASU 2017-12 expanded disclosure requirements and required a cumulative-effect adjustment for certain items upon adoption. The adoption of ASU 2017-12 was not material to our consolidated financial statements.Note 3. Discontinued OperationsOn March 5, 2017 we entered into the Agreement to sell our European Business to PSA Group. On July 31, 2017 we closed the sale of our Opel/VauxhallBusiness to PSA Group and on October 31, 2017 we closed the sale of the Fincos to Banque PSA Finance S.A. and BNP Paribas Personal Finance S.A.57Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)The net consideration paid at closing for the European Business was $2.5 billion, consisting of (1) $2.2 billion in cash; and (2) $808 million in warrants inPSA Group; partially offset by (3) the $455 million de-risking premium payment made to PSA Group for assuming certain underfunded pension liabilities.The warrants are not exercisable for five years and do not include any governance or voting rights with respect to PSA Group. In addition, we agreed to sellthe shares of PSA Group received upon exercise of the warrants within 35 days after exercise. The purchase price is subject to certain working capitaladjustments as provided in the Agreement.The total charge from the sale of the European Business was $6.2 billion, net of tax, of which $3.9 billion is recorded in Income (loss) from discontinuedoperations, net of tax, and $2.3 billion is recorded in Income tax expense. The charge relates to: (1) $4.3 billion of deferred tax assets that will no longer berealizable or that transferred to PSA Group; (2) $1.5 billion related to previously deferred pension losses and payment of the de-risking premium to PSAGroup for its assumption of certain underfunded pension liabilities; (3) a pre-tax disposal loss of $525 million as a result of the sale of the Fincos, whichincludes the recognition of $197 million of foreign currency translation losses; (4) a pre-tax charge of $421 million for the cancellation of productionprograms resulting from the convergence of vehicle platforms between the European Business and PSA Group; and (5) other insignificant costs to support theseparation of operations to be provided for a period of time following closing; partially offset by proceeds.Refer to Note 17 to our consolidated financial statements for further details related to the working capital adjustments and indemnity provided by theSeller to PSA Group.We retained net underfunded pension liabilities of $6.8 billion owed primarily to current pensioners and former employees of the European Business withvested pension rights. PSA Group assumed, pursuant to the Agreement, approximately $3.1 billion of net underfunded pension liabilities primarily withrespect to active employees of the Opel/Vauxhall Business, and during the year ended December 31, 2017 the Seller made payments to PSA Group, or one ormore pension funding vehicles, of $3.4 billion in respect of these assumed liabilities, which includes pension funding payments for active employees and thede-risking premium payment of $455 million discussed above. At closing we drew upon our three-year unsecured revolving credit facility to fund thesepayments. We issued debt securities, as described in Note 14, thereafter to repay the amount drawn on our credit facility. As part of the retained pensionliabilities described above, we retained the U.K. defined benefit pension plans in existence at signing related to the Opel/Vauxhall Business, includingresponsibility for service cost accruals through the closing date. Those plans with active participants closed to future accrual as of July 30, 2017. Any futureservice cost accruals on and from the closing date will be the responsibility of PSA Group.We have agreed to purchase from and supply to PSA Group certain vehicles for a period of time following closing. During the year ended December 31,2017 Total net sales and revenue of $853 million and purchases and expenses of $218 million related to transactions with the Opel/Vauxhall Business thatwould have been eliminated in consolidation prior to the sale of the Opel/Vauxhall Business were included in continuing operations. During the year endedDecember 31, 2017 cash payments were $242 million and cash receipts of $1.2 billion were recorded in Net cash provided by operating cash flows -continuing operations related to transactions with the Opel/Vauxhall Business.The following table summarizes the results of the European Business operations: Years Ended December 31,201720162015Automotive net sales and revenue$11,257$19,704$19,075GM Financial net sales and revenue466552573Total net sales and revenue11,72320,25619,648Automotive cost of sales11,04918,89418,343GM Financial interest, operating and other expenses342423429Automotive selling, general, and administrative expense8131,3561,517Other income and (expense) items(72)93(12)Loss from discontinued operations before taxes553324653Loss on sale of discontinued operations before taxes(a)(b)2,176——Total loss from discontinued operations before taxes2,729324653Income tax expense (benefit)(b)(c)1,483(323)(678)Income (loss) from discontinued operations, net of tax$(4,212)$(1)$25__________(a)Includes contract cancellation charges associated with the disposal for the year ended December 31, 2017.58Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)(b)Total loss on sale of discontinued operations, net of tax was $3.9 billion for the year ended December 31, 2017.(c)Includes $2.0 billion of deferred tax assets that transferred to PSA Group in the year ended December 31, 2017.The following table summarizes the assets and liabilities of the European Business at December 31, 2016:December 31, 2016Current AssetsCash and cash equivalents$386Accounts and notes receivable, net938GM Financial receivables, net5,938Inventories2,748Equipment on operating leases, net786Other current assets382Total current assets held for sale11,178Non-current AssetsGM Financial receivables, net3,723Property, net3,217Deferred income taxes1,920Other assets515Total non-current assets held for sale9,375Total Assets Held for Sale$20,553Current LiabilitiesAccounts payable (principally trade)$3,628Short-term debt and current portion of long-term debtAutomotive107GM Financial5,124Accrued liabilities3,299Total current liabilities held for sale12,158Non-current LiabilitiesLong-term debtAutomotive85GM Financial4,189Pensions2,687Other liabilities665Total non-current liabilities held for sale7,626Total Liabilities Held for Sale$19,784Note 4. Marketable SecuritiesThe following table summarizes the fair value of cash equivalents and marketable securities which approximates cost:59Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)Fair ValueLevelDecember 31, 2017December 31, 2016Cash and cash equivalentsCash, cash equivalents and time deposits$6,962$5,692Available-for-sale securitiesU.S. government and agencies27501,158Corporate debt23,0322,524Money market funds12,8141,801Sovereign debt21,9541,399Total available-for-sale securities – cash equivalents8,5506,882Total cash and cash equivalents$15,512$12,574Marketable securitiesU.S. government and agencies2$3,310$5,886Corporate debt23,6653,611Mortgage and asset-backed2635197Sovereign debt27032,147Total available-for-sale securities – marketable securities$8,313$11,841Restricted cashCash, cash equivalents and time deposits$219$248Available-for-sale securities, primarily money market funds12,1171,665Total restricted cash$2,336$1,913Available-for-sale securities included above with contractual maturities(a)Due in one year or less$8,539Due between one and five years4,875Total available-for-sale securities with contractual maturities$13,414__________(a)Excludes mortgage and asset-backed securities.Sales proceeds from investments classified as available-for-sale and sold prior to maturity were $5.6 billion, $8.5 billion and $7.9 billion in the years endedDecember 31, 2017, 2016 and 2015. Net unrealized gains and losses on available-for-sale securities and realized gains and losses on trading securities wereinsignificant in the years ended December 31, 2017, 2016 and 2015. Cumulative unrealized gains and losses on available-for-sale securities wereinsignificant at December 31, 2017 and 2016.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, 2017December 31, 2016Cash and cash equivalents$15,512$12,574Restricted cash included in Other current assets1,7451,382Restricted cash included in Other assets591531Total$17,848$14,48760Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)Note 5. GM Financial ReceivablesDecember 31, 2017December 31, 2016RetailCommercialTotalRetailCommercialTotalFinance receivables, collectively evaluated for impairment, netof fees$30,486$9,935$40,421$24,480$7,506$31,986Finance receivables, individually evaluated for impairment,net of fees2,228222,2501,920271,947GM Financial receivables32,7149,95742,67126,4007,53333,933Less: allowance for loan losses(889)(53)(942)(765)(40)(805)GM Financial receivables, net$31,825$9,904$41,729$25,635$7,493$33,128 Fair value of GM Financial receivables $41,735 $33,181We estimate the fair value of retail finance receivables using observable and unobservable Level 3 inputs within a cash flow model. The inputs reflectassumptions regarding expected prepayments, deferrals, delinquencies, recoveries and charge-offs of the loans within the portfolio. The cash flow modelproduces an estimated amortization schedule of the finance receivables. The projected cash flows are then discounted to derive the fair value of the portfolio.Macroeconomic factors could affect the credit performance of the portfolio and therefore could potentially affect the assumptions used in our cash flowmodel. A substantial majority of our commercial finance receivables have variable interest rates. The carrying amount, a Level 2 input, is considered to be areasonable estimate of fair value.Years Ended December 31,201720162015Allowance for loan losses at beginning of period$805$749$668Provision for loan losses757644603Charge-offs(1,173)(1,137)(969)Recoveries552542469Effect of foreign currency17(22)Allowance for loan losses at end of period$942$805$749The allowance for loan losses on retail and commercial finance receivables included a collective allowance of $611 million, $525 million and $524million and a specific allowance of $331 million, $280 million and $225 million at December 31, 2017, 2016 and 2015.Retail Finance Receivables We use proprietary scoring systems in the underwriting process that measure the credit quality of retail finance receivablesusing several factors, such as credit bureau information, consumer credit risk scores (e.g. FICO scores or their equivalent) and contract characteristics. We alsoconsider other factors such as employment history, financial stability and capacity to pay. Subsequent to origination we review the credit quality of retailfinance receivables based on customer payment activity. While we have historically focused on consumers with lower than prime credit scores, we haveexpanded our prime lending programs. At December 31, 2017 and 2016 33% and 41% of retail finance receivables were from consumers with sub-primecredit scores, which are defined as FICO scores or equivalent scores of less than 620 at the time of loan origination.We purchase retail finance contracts from automobile dealers without recourse, and accordingly, the dealer has no liability to GM Financial if the consumerdefaults on the contract. Finance receivables are collateralized by vehicle titles and GM Financial has the right to repossess the vehicle in the event theconsumer 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 the payment was contractually due.The accrual of finance charge income had been suspended on delinquent retail finance receivables with contractual amounts due of $778 million and $798million at December 31, 2017 and 2016. The following table summarizes the contractual amount of delinquent retail finance receivables, which is notsignificantly different than the recorded investment of the retail finance receivables:61Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)December 31, 2017December 31, 2016AmountPercent ofContractualAmount DueAmountPercent ofContractualAmount Due31-to-60 days delinquent$1,3344.1%$1,2204.6%Greater-than-60 days delinquent5591.7%5322.0%Total finance receivables more than 30 days delinquent1,8935.8%1,7526.6%In repossession27—%470.2%Total finance receivables more than 30 days delinquent or in repossession$1,9205.8%$1,7996.8%Retail finance receivables classified as TDRs and individually evaluated for impairment were $2.2 billion and $1.9 billion and the allowance for loanlosses included $328 million and $276 million of specific allowances on these receivables at December 31, 2017 and 2016.Commercial Finance Receivables Our commercial finance receivables consist of dealer financings, primarily for inventory purchases. A proprietary modelis used to assign a risk rating to each dealer. We perform periodic credit reviews of each dealership and adjust the dealership's risk rating, if necessary. Dealersin Group VI are subject to additional restrictions on funding, including suspension of lines of credit and liquidation of assets. The commercial financereceivables on non-accrual status were insignificant at December 31, 2017 and 2016. The following table summarizes the credit risk profile by dealer riskrating of the commercial finance receivables: December 31, 2017 December 31, 2016Group I– Dealers with superior financial metrics$1,915 $1,372Group II– Dealers with strong financial metrics3,465 2,526Group III– Dealers with fair financial metrics3,239 2,598Group IV– Dealers with weak financial metrics997 613Group V– Dealers warranting special mention due to elevated risks260 334Group VI– Dealers with loans classified as substandard, doubtful or impaired8190 $9,957 $7,533Note 6. InventoriesDecember 31, 2017December 31, 2016Total productive material, supplies and work in process$4,203$5,008Finished product, including service parts6,4606,032Total inventories$10,663$11,040Note 7. Equipment on Operating LeasesEquipment on operating leases consists of leases to retail customers that are recorded as operating leases and vehicle sales to daily rental car companieswith a guaranteed repurchase obligation. December 31, 2017 December 31, 2016Equipment on operating leases$53,947 $41,851Less: accumulated depreciation(9,959) (6,399)Equipment on operating leases, net(a)$43,988 $35,452__________(a)Includes $42.9 billion and $34.3 billion of GM Financial equipment on operating leases, net in the years ended December 31, 2017 and 2016.Depreciation expense related to equipment on operating leases, net was $6.7 billion, $4.7 billion and $2.5 billion in the years ended December 31, 2017,2016 and 2015.62Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)The following table summarizes minimum rental payments due to GM Financial on leases to retail customers:20182019202020212022Minimum rental receipts under operating leases$6,848 $4,530 $1,759 $189 $12Note 8. 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 31,201720162015Automotive China equity income$1,976$1,973$2,057Other joint ventures equity income156309136Total Equity income$2,132$2,282$2,193Investments in Nonconsolidated AffiliatesDecember 31, 2017December 31, 2016Automotive China carrying amount$7,832$7,859Other investments carrying amount1,2411,137Total equity in net assets of nonconsolidated affiliates$9,073$8,996The carrying amount of our investments in certain joint ventures exceeded our share of the underlying net assets by $4.3 billion at December 31, 2017 and2016 due primarily to goodwill from the application of fresh-start reporting and the purchase of additional interests in nonconsolidated affiliates.The following table summarizes our direct ownership interests in our China JVs: December 31, 2017 December 31, 2016Automotive China JVs SAIC General Motors Corp., Ltd. (SGM)50% 50%FAW-GM Light Duty Commercial Vehicle Co., Ltd. (FAW-GM)50% 50%Pan Asia Technical Automotive Center Co., Ltd.50% 50%SAIC General Motors Sales Co., Ltd.49% 49%SAIC GM Wuling Automobile Co., Ltd. (SGMW)44% 44%Shanghai OnStar Telematics Co., Ltd. (Shanghai OnStar)40% 40%SAIC GM (Shenyang) Norsom Motors Co., Ltd. (SGM Norsom)25% 25%SAIC GM Dong Yue Motors Co., Ltd. (SGM DY)25% 25%SAIC GM Dong Yue Powertrain Co., Ltd. (SGM DYPT)25% 25%Shanghai Chengxin Used Car Operation and Management Co., Ltd. (Shanghai Chengxin UsedCar)—% 33%Other joint ventures SAIC-GMAC35% 35%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%) and SAIC-GMAC (20%). Shanghai Automotive Group Finance Company Ltd., a subsidiary of SAIC, owns 45% of SAIC-GMAC.63Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)Summarized Financial Data of Nonconsolidated AffiliatesDecember 31, 2017December 31, 2016Automotive ChinaJVsOthersTotalAutomotive ChinaJVsOthersTotalSummarized Balance Sheet DataCurrent assets$17,370$13,484$30,854$17,325$8,383$25,708Non-current assets14,1883,40917,59712,7125,99118,703Total assets$31,558$16,893$48,451$30,037$14,374$44,411Current liabilities$22,642$12,255$34,897$21,428$7,277$28,705Non-current liabilities1,6391,9033,5421,3933,8985,291Total liabilities$24,281$14,158$38,439$22,821$11,175$33,996 Noncontrolling interests$871 $1 $872 $856 $1 $857 Years Ended December 31,201720162015Summarized Operating DataAutomotive China JVs' net sales$50,065$47,150$44,959Others' net sales2,5422,4123,571Total net sales$52,607$49,562$48,530 Automotive China JVs' net income$3,984$4,117$4,290Others' net income648378435Total net income$4,632$4,495$4,725Transactions 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 nonconsolidated affiliates to purchase and sell componentparts and vehicles. The following tables summarize transactions with and balances related to our nonconsolidated affiliates: Years Ended December 31, 2017 2016 2015Automotive sales and revenue$923 $889 $1,745Automotive purchases, net$674 $803 $7Dividends received$2,000 $2,120 $2,047Operating cash flows$2,321 $2,512 $3,853 December 31, 2017 December 31, 2016Accounts and notes receivable, net$780 $807Accounts payable$534 $553Undistributed earnings$2,184 $2,172Note 9. Property64Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued) Estimated Useful Lives inYears December 31, 2017 December 31, 2016Land $1,647 $1,587Buildings and improvements5-40 7,471 6,217Machinery and equipment3-27 23,915 21,613Special tools1-13 21,113 19,359Construction in progress 6,188 4,493Total property 60,334 53,269Less: accumulated depreciation (24,081) (20,666)Total property, net $36,253 $32,603The amount of capitalized software included in Property, net was $1.2 billion and $1.1 billion at December 31, 2017 and 2016. The amount of interestcapitalized and excluded from Automotive interest expense related to Property, net was insignificant in the years ended December 31, 2017, 2016 and 2015. Years Ended December 31, 2017 2016 2015Depreciation and amortization expense$4,966 $4,622 $3,904Impairment charges$199 $68 $628Capitalized software amortization expense(a)$459 $458 $374__________(a)Included in depreciation and amortization expense. Note 10. 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.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.Note 11. Goodwill and Intangible AssetsGoodwill of $1.9 billion consisted of $1.4 billion recorded in GM Financial and $490 million included in Corporate at December 31, 2017 and 2016.December 31, 2017December 31, 2016GrossCarryingAmountAccumulatedAmortizationNet CarryingAmountGrossCarryingAmountAccumulatedAmortizationNet CarryingAmountTechnology and intellectual property$8,092$7,735$357$8,399$7,940$459Brands4,3021,0443,2584,3119213,390Dealer network, customer relationships and other1,3109333771,356912444Total intangible assets$13,704$9,712$3,992$14,066$9,773$4,293Our amortization expense related to intangible assets was $278 million, $325 million, and $324 million in the years ended December 31, 2017, 2016 and2015.65Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)Amortization expense related to intangible assets is estimated to be approximately $175 million in each of the next five years.Note 12. 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 to the VIEs (Securitized Assets). GM Financial determined that it is the primary beneficiary of the SPEs because the servicingresponsibilities for the Securitized Assets give GM Financial the power to direct the activities that most significantly impact the performance of the VIEs andthe variable interests in the VIEs give GM Financial the obligation to absorb losses and the right to receive residual returns that could potentially besignificant. 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, 2017 December 31, 2016Restricted cash – current$1,740 $1,302Restricted cash – non-current$527 $478GM Financial receivables, net of fees – current$15,141 $12,437GM Financial receivables, net of fees – non-current$12,944 $11,917GM Financial equipment on operating leases, net$22,222 $19,341GM Financial short-term debt and current portion of long-term debt$18,972 $17,526GM Financial long-term debt$20,356 $16,659GM 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.Note 13. Accrued and Other LiabilitiesDecember 31, 2017December 31, 2016Accrued liabilitiesDealer and customer allowances, claims and discounts$8,523$8,847Deposits primarily from rental car companies2,1132,023Deferred revenue3,4002,695Product warranty and related liabilities2,9943,236Payrolls and employee benefits excluding postemployment benefits2,5942,915Other6,3726,177Total accrued liabilities$25,996$25,893Other liabilitiesDeferred revenue$2,887$2,285Product warranty and related liabilities5,3385,833Employee benefits excluding postemployment benefits680899Postemployment benefits including facility idling reserves574757Other2,9152,641Total other liabilities$12,394$12,41566Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued) Years Ended December 31, 2017 2016 2015Product Warranty and Related Liabilities Warranty balance at beginning of period$9,069 $8,550 $8,871Warranties issued and assumed in period – recall campaigns678 899 878Warranties issued and assumed in period – product warranty2,123 2,338 2,108Payments(3,129) (3,375) (3,670)Adjustments to pre-existing warranties(495) 636 578Effect of foreign currency and other86 21 (215)Warranty balance at end of period$8,332 $9,069 $8,550We estimate our reasonably possible loss in excess of amounts accrued for recall campaigns to be insignificant at December 31, 2017. Refer to Note 17 forreasonably possible losses on Takata matters.Note 14. Automotive and GM Financial DebtDecember 31, 2017December 31, 2016Secured debt$204$108Unsecured debt12,5799,742Capital leases719710Total automotive debt(a)$13,502$10,560Fair value utilizing Level 1 inputs$13,202$9,515Fair value utilizing Level 2 inputs1,8861,884Fair value of automotive debt$15,088$11,399 Available under credit facility agreements$14,067 $14,181Interest rate range on outstanding debt(b)0.0-21.8% 0.0-18.0%Weighted-average interest rate on outstanding short-term debt(b)4.7% 10.7%Weighted-average interest rate on outstanding long-term debt(b)5.2% 5.2%__________(a)Includes net discount and debt issuance costs of $499 million and $491 million at December 31, 2017 and 2016.(b)Includes coupon rates on debt denominated in various foreign currencies and interest free loans and the impact of reclassification of $1.5 billion of senior unsecured notes fromlong-term to short-term in the year ended December 31, 2017.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, 2017 and December 31, 2016 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 August 2017 we issued $3.0 billion in aggregate principal amount of senior unsecured notes with an initial weighted average interest rate of 4.5% andmaturity dates ranging from 2020 to 2048. The indentures governing these notes contain terms and covenants customary of these types of securitiesincluding limitation on the amount of certain secured debt we may incur. The net proceeds from the issuance of these senior unsecured notes were used torepay the $3.0 billion drawn on our three-year unsecured revolving credit facility in the three months ended September 30, 2017 to fund the payments to PSAGroup, or one or more pension funding vehicles, for the assumed net underfunded pension liabilities in connection with the sale of the Opel/VauxhallBusiness as described in Note 3.67Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)December 31, 2017December 31, 2016CarryingAmountFair ValueCarryingAmountFair ValueSecured debt$39,887$39,948$35,087$35,162Unsecured debt40,83041,98929,47630,045Total GM Financial debt$80,717$81,937$64,563$65,207 Fair value utilizing Level 2 inputs $79,623 $62,951Fair value utilizing Level 3 inputs $2,314 $2,256The 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 with original maturity or revolving period of 18 months or less par value is considered to be areasonable estimate of fair value. The fair value of GM Financial debt measured utilizing Level 3 inputs was based on the discounted future net cash flowsexpected 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 12 for additional information on GM Financial's involvement with VIEs.GM Financial is required to hold certain funds in restricted cash accounts to provide additional collateral for borrowings under certain secured creditfacilities. The weighted-average interest rate on secured debt was 2.37% at December 31, 2017. The revolving credit facilities have maturity dates rangingfrom 2018 to 2023 and securitization notes payable have maturity dates ranging from 2019 to 2025. At the end of the revolving period, if not renewed, thedebt of revolving credit facilities will amortize over a defined period. In the year ended December 31, 2017 we entered into new or renewed credit facilitieswith a total net additional borrowing capacity of $2.9 billion, which had substantially the same terms as existing debt and we issued $22.4 billion inaggregate principal amount of securitization notes payable with an initial weighted average interest rate of 2.10% and maturity dates ranging from 2019 to2025.Unsecured debt consists of senior notes, credit facilities and other unsecured debt. Senior notes outstanding at December 31, 2017 are due beginning in2018 through 2027 and have a weighted-average interest rate of 3.27%. In the year ended December 31, 2017 we issued $12.7 billion in aggregate principalamount of senior notes with an initial weighted average interest rate of 2.85% and maturity dates ranging from 2019 to 2027.In January 2018 we issued $1.65 billion in aggregate principal amount of senior notes with an initial weighted average interest rate of 3.26% and maturitydates ranging from 2023 to 2028.Each of the revolving credit facilities and the indentures governing GM Financial's notes contain terms and covenants including limitations on GMFinancial's ability to incur certain liens.The terms of advances on credit facilities and other unsecured debt have original maturities of up to four years. The weighted-average interest rate on creditfacilities and other unsecured debt was 7.28% at December 31, 2017. Years Ended December 31,201720162015Automotive interest expense$575$563$423Automotive Financing - GM Financial interest expense2,5661,9721,460Total interest expense$3,141$2,535$1,883The following table summarizes contractual maturities including capital leases at December 31, 2017:68Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)AutomotiveAutomotiveFinancing(a)Total2018$2,528$24,502$27,030201915418,48918,643202058614,69615,2822021597,8027,8612022635,3235,386Thereafter10,61110,47721,088$14,001$81,289$95,290________(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, 2017 future interest payments on automotive capital lease obligations were $280 million. GM Financial had no capital lease obligationsat December 31, 2017.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, 2017.Note 15. Derivative Financial InstrumentsAutomotive The following table presents the notional amounts based on asset or liability positions of derivative financial instruments in our automotiveoperations: Fair ValueLevel December 31, 2017December 31, 2016Derivatives designated as hedges(a) Assets Cash flow hedges Foreign currency2 $—$803Commodity2 —106Total assets $—$909Derivatives not designated as hedges(a) Assets Foreign currency2/3 $2,834$4,483Commodity2 6061,061PSA Warrants(b)2 48 —Total assets $3,488$5,544Liabilities Foreign currency2/3 $1,188$470Commodity2 —181Total liabilities $1,188$651__________(a)The fair value of these derivative instruments at December 31, 2017 and 2016 and the gains/losses included in our consolidated income statements and statements ofcomprehensive income for the years ended December 31, 2017, 2016 and 2015 were insignificant.(b)The fair value of the PSA warrants was $764 million at December 31, 2017.69Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued) GM Financial The following table presents the notional amounts based on asset or liability positions of GM Financial's derivative financial instruments: Fair ValueLevel December 31, 2017 December 31, 2016Derivatives designated as hedges(a) Assets Fair value hedges – interest rate swaps2 $1,250 $— Cash flow hedges Interest rate swaps2/3 2,1773,070Foreign currency2 1,574— Total cash flow hedges 3,7513,070Total assets $5,001$3,070Liabilities Fair value hedges – interest rate swaps(b)2 $9,860$7,700 Cash flow hedges Interest rate swaps2/3 —500Foreign currency2 —791 Total cash flow hedges —1,291Total liabilities $9,860$8,991Derivatives not designated as hedges(a) Assets Interest rate swaps(c)2/3 $38,741$7,959Interest rate caps and floors2 16,8409,698Foreign currency2 1,201—Total assets $56,782$17,657Liabilities Interest rate swaps2/3 $8,404$6,170Interest rate caps and floors2 17,95312,146Total liabilities $26,357$18,316__________(a)The fair value of these derivative instruments at December 31, 2017 and 2016 and the gains/losses included in our consolidated income statements and statements ofcomprehensive income for the years ended December 31, 2017, 2016 and 2015 were insignificant.(b)The fair value of these derivative instruments was $290 million and $276 million at December 31, 2017 and 2016.(c)The fair value of these derivative instruments was $260 million and insignificant at December 31, 2017 and 2016.Note 16. 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.70Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)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, 2017 all legal funding requirements were met. In the yearended December 31, 2016 we made a discretionary contribution to our U.S. hourly pension plan of $2.0 billion. The following table summarizescontributions made to the defined benefit pension plans: Years Ended December 31,201720162015U.S. hourly and salaried$77$2,054$95Non-U.S.1,1531,0221,108Total$1,230$3,076$1,203We expect to contribute approximately $70 million to our U.S. non-qualified plans and approximately $900 million to our non-U.S. pension plans in 2018.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 $1.2 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 $323 million,$335 million and $340 million in the years ended December 31, 2017, 2016 and 2015. Plan participants' contributions were insignificant in the years endedDecember 31, 2017, 2016 and 2015.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 $650million, $589 million and $530 million in the years ended December 31, 2017, 2016 and 2015.Significant Plan Amendments, Benefit Modifications and Related EventsOther Remeasurements The Society of Actuaries (SOA) issued new mortality improvement tables in the three months ended December 31, 2017. These didnot result in any change in our current assumptions to measure our December 31, 2017 U.S. pension plan obligations. We incorporated the mortalityimprovement tables issued by the SOA in the three months ended December 31, 2016 that lowered life expectancies and thereby indicated the amount ofestimated aggregate benefit payments to our U.S. pension plans' participants was decreasing. This change in assumption decreased the December 31, 2016U.S. pension and OPEB plans' obligations by $888 million.Pension and OPEB Obligations and Plan AssetsYear Ended December 31, 2017Year Ended December 31, 2016Pension BenefitsGlobalOPEB PlansPension BenefitsGlobalOPEB PlansU.S.Non-U.S.U.S.Non-U.S.Change in benefit obligationsBeginning benefit obligation$68,827$21,156$6,180$71,486$21,008$6,066Service cost2031801922025518Interest cost2,1454732022,212527201Actuarial losses2,8855613114161,328230Benefits paid(5,067)(1,369)(426)(5,507)(1,458)(400)Foreign currency translation adjustments—1,95378—(445)45Curtailments, settlements and other(543)(165)10—(59)20Ending benefit obligation68,45022,7896,37468,82721,1566,180Change in plan assetsBeginning fair value of plan assets61,62212,799—61,07212,794—Actual return on plan assets6,5491,025—4,004750—Employer contributions771,1534062,0541,022378Benefits paid(5,067)(1,369)(426)(5,507)(1,458)(400)Foreign currency translation adjustments—1,007——(229)—Settlements and other(542)(120)20(1)(80)22Ending fair value of plan assets62,63914,495—61,62212,799—Ending funded status$(5,811)$(8,294)$(6,374)$(7,205)$(8,357)$(6,180)Amounts recorded in the consolidated balance sheetsNon-current assets$—$67$—$—$91$—Current liabilities(71)(355)(376)(73)(316)(377)Non-current liabilities(5,740)(8,006)(5,998)(7,132)(8,132)(5,803)Net amount recorded$(5,811)$(8,294)$(6,374)$(7,205)$(8,357)$(6,180)Amounts recorded in Accumulated other comprehensive lossNet actuarial gain (loss)$114$(4,163)$(1,186)$55$(3,852)$(901)Net prior service (cost) credit23(26)5527(30)54Total recorded in Accumulated other comprehensive loss$137$(4,189)$(1,131)$82$(3,882)$(847)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, 2017 December 31, 2016 U.S. Non-U.S. U.S. Non-U.S.ABO$68,437 $22,650 $68,813 $20,836Plans with ABO in excess of plan assets ABO$68,437 $21,679 $68,813 $20,172Fair value of plan assets$62,639 $13,408 $61,622 $12,046Plans with PBO in excess of plan assets PBO$68,450 $21,822 $68,827 $20,458Fair value of plan assets$62,639 $13,411 $61,622 $12,009The following table summarizes the components of net periodic pension and OPEB expense along with the assumptions used to determine benefitobligations:Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015Pension Benefits Global OPEBPlans Pension Benefits Global OPEBPlans Pension Benefits Global OPEBPlansU.S.Non-U.S.U.S.Non-U.S.U.S.Non-U.S.Components of expense Service cost$315$199$19$381$273$18$406$306$24Interest cost2,1454732022,2125272012,754689238Expected return on plan assets(3,677)(750)—(3,778)(733)—(3,896)(794)—Amortization of net actuarial (gains) losses(6)15723(25)13719818837Curtailments, settlements and other(a)(37)8(5)(4)16(13)(4)141(14)Net periodic pension and OPEB (income) expense$(1,260)$87$239$(1,214)$220$225$(732)$530$285Weighted-average assumptions used to determine benefit obligations(b) Discount rate3.53% 2.66% 3.52% 3.92% 2.88% 3.93% 4.06% 3.36% 4.13%Weighted-average assumptions used to determine net expense(b) Discount rate3.35% 2.94% 3.39% 3.36% 3.14% 3.49% 3.73% 3.30% 3.83%Expected rate of return on plan assets6.23% 5.82% N/A 6.33% 6.07% N/A 6.38% 6.32% N/A_________(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)The rate of compensation increase does not have a significant effect on our U.S. pension and OPEB plans.U.S. pension plan service cost includes administrative expenses and Pension Benefit Guarantee Corporation premiums which were insignificant in theyears ended December 31, 2017, 2016 and 2015. 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 31,2017, 2016 and 2015.Estimated amounts to be amortized from Accumulated other comprehensive loss into net periodic benefit cost in the year ending December 31, 2018 basedon December 31, 2017 plan measurements are $166 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 de-risk 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.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, equity 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 andequity derivatives may be used to protect equity positions from downside market losses. Alternative investment managers are permitted to employ leverage,including through the use of derivatives, which may alter economic exposure.In December 2017 an investment policy study was completed for the U.S. pension plans. As a result of changes to our capital market assumptions, theweighted-average long-term rate of return on assets increased from 6.2% at December 31, 2016 to 6.6% at December 31, 2017. The expected long-term rate ofreturn on plan assets used in determining pension expense for non-U.S. plans is determined in a similar manner to the U.S. plans.Target Allocation Percentages The following table summarizes the target allocations by asset category for U.S. and non-U.S. defined benefit pensionplans:December 31, 2017December 31, 2016U.S.Non-U.S.U.S.Non-U.S.Equity15%18%15%21%Debt61%56%61%51%Other(a)24%26%24%28%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, 2017December 31, 2016Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalU.S. Pension Plan AssetsCommon and preferred stocks$8,892$17$2$8,911$8,288$35$3$8,326Government and agency debt securities(a)—12,116—12,116—11,374—11,374Corporate and other debt securities—26,122—26,122—25,452—25,452Other investments, net5521193951,0664862884031,177Net plan assets subject to leveling$9,444$38,374$39748,215$8,774$37,149$40646,329Plan assets measured at net asset valueInvestment funds6,6326,509Private equity and debt investments3,5394,012Real estate investments3,3513,634Total plan assets measured at net asset value13,52214,155Other plan assets, net(b)9021,138Net plan assets$62,639$61,622December 31, 2017December 31, 2016Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalNon-U.S. Pension Plan AssetsCommon and preferred stocks$578$1$6$585$978$3$—$981Government and agency debt securities(a)—3,853—3,853—3,221—3,221Corporate and other debt securities—2,566—2,566—2,04032,043Other investments, net2314943861037153429619Net plan assets subject to leveling$601$6,569$4447,614$1,015$5,417$4326,864Plan assets measured at net asset valueInvestment funds5,3464,428Private equity and debt investments570546Real estate investments1,0971,092Total plan assets measured at net asset value7,0136,066Other plan assets (liabilities), net(b)(132)(131)Net plan assets$14,495$12,799__________(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, 2017and 2016. Investment Fund Strategies Investment funds include hedge funds, funds of hedge funds, equity funds and fixed income funds. Hedge funds and funds ofhedge funds managers typically seek to achieve their objectives by allocating capital across a broad array of funds and/or investment managers. Equity fundsinvest in U.S. common and preferred stocks as well as similar equity securities issued by companies incorporated, listed or domiciled in developed and/oremerging market countries. Fixed income funds include investments in high quality funds and, to a lesser extent, high yield funds. High quality fixed incomefunds invest in government securities, investment-grade corporate bonds and mortgage and asset-backed securities. High yield fixed income funds invest inhigh yield fixed income securities issued by corporations which are rated below investment grade. Other investment funds also included in this categoryprimarily represent multi-strategy funds that invest in broadly diversified portfolios of equity, fixed income and derivative instruments.Private equity and debt investments primarily consist of investments in private equity and debt funds. These investments provide exposure to and 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.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 Global OPEBPlans U.S. Plans Non-U.S. Plans 2018$5,288 $1,458 $3792019$5,053 $1,323 $3742020$4,895 $1,302 $3682021$4,758 $1,276 $3652022$4,639 $1,233 $3622023 - 2027$21,553 $5,759 $1,817Note 17. Commitments and ContingenciesLitigation-Related Liability and Tax Administrative Matters In the normal course of our business, we are named from time to time as a defendant invarious legal actions, including arbitrations, class actions and other litigation. We identify below the material individual proceedings and investigations inconnection with which we believe a material loss is reasonably possible or probable. We accrue for matters when we believe that losses are probable and canbe reasonably estimated. At December 31, 2017 and 2016, accruals were $930 million and $1.2 billion and were recorded in Accrued liabilities and Otherliabilities. In many proceedings, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the size or rangeof the possible loss. Accordingly an adverse outcome from such proceedings could exceed the amounts accrued by an amount that could be material to ourresults 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 and other matters. Those recallsincluded 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.Economic-Loss Claims We are aware of over 100 putative class actions pending against GM in various courts in the U.S. and Canada alleging thatconsumers who purchased or leased vehicles manufactured by GM or Motors Liquidation Company (formerly known as General Motors Corporation) hadbeen economically harmed by one or more of the 2014 recalls and/or the underlying vehicle conditions associated with those recalls (economic-loss cases).In general, these economic-loss cases seek recovery for purported compensatory damages, such as alleged benefit-of-the-bargain damages or damages relatedto alleged diminution in value of the vehicles, as well as punitive damages, injunctive relief and other relief. There is also a civil action brought by theArizona Attorney General relating to the 2014 recalls that seeks civil penalties and injunctive relief for alleged violations of state laws.Many of the pending economic-loss claims have been transferred to, and consolidated in, a single federal court, the Southern District. These plaintiffs haveasserted economic-loss claims under federal and state laws, including claims relating to recalled vehicles manufactured by GM and claims asserting successorliability relating to certain recalled vehicles manufactured by Motors Liquidation Company. The Southern District has dismissed various of these claims,including claims under the Racketeer Influenced and Corrupt Organization Act, claims for recovery for alleged reduction in the value of their vehicles due todamage to GM’s reputation and brand as a result of the ignition switch matter, and claims of plaintiffs who purchased a vehicle before GM came intoexistence in July 2009. The Southern District also dismissed certain state law claims at issue.In August 2017 the Southern District granted our motion to dismiss the successor liability claims of plaintiffs in seven of the sixteen states at issue on themotion and called for additional briefing to decide whether Plaintiffs' claims can proceed in the other71Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)nine states. In December 2017 the Southern District granted GM's motion and dismissed successor liability claims of plaintiffs in an additional state, butfound that there are genuine issues of material fact that prevent summary judgment for GM in eight other states. In January 2018, GM moved forreconsideration of certain portions of the Southern District's summary judgment ruling.Personal Injury Claims We also are aware of several hundred actions pending in various courts in the U.S. and Canada alleging injury or death as a result ofdefects that may be the subject of the 2014 recalls (personal injury cases). In general, these cases seek recovery for purported compensatory damages, punitivedamages and other relief. Since 2016, several bellwether trials of personal injury cases have taken place in the Southern District and in a Texas state court,which is administering a Texas state multi-district litigation. None of these trials resulted in a finding of liability against GM.Appellate Litigation Regarding Successor Liability Ignition Switch Claims In 2015 the Bankruptcy Court issued a decision precluding claims against usbased upon pre-sale accidents, claims based upon the acts or conduct by Motors Liquidation Company and claims asserting successor liability forobligations owed by Motors Liquidation Company (successor liability claims), except for claims asserting liabilities that had been expressly assumed by usin the Amended and Restated Master Sale and Purchase Agreement, and certain claims arising solely out of our own independent post-sale acts.In 2016 the United States Court of Appeals for the Second Circuit (Second Circuit) held that the Bankruptcy Court's 2009 order approving the sale ofsubstantially all of the assets of Motors Liquidation Company to GM free and clear of, among other things, successor liability claims could not be enforced tobar claims against GM asserted by either plaintiffs who purchased used vehicles after the sale or against purchasers who asserted claims relating to theignition switch defect, including pre-sale personal injury claims and economic-loss claims. In 2017, the United States Supreme Court denied our petition forcertiorari. Certain of these pre-sale claims were resolved through GM's Compensation Program. Plaintiffs asserting pre-sale claims related to the ignitionswitch defect that were not resolved by the Compensation Program must still establish their right to assert successor liability claims and demonstrate thattheir claims have merit.Contingently Issuable Shares Under the Amended and Restated Master Sale and Purchase Agreement between us and Motors Liquidation Company wemay be obligated to issue Adjustment Shares of our common stock in the event that allowed general unsecured claims against the GUC Trust, as estimated bythe Bankruptcy Court, exceed $35.0 billion. The maximum number of shares issuable is 30 million shares (subject to adjustment to take into account stockdividends, stock splits and other transactions). At December 31, 2017, the Bankruptcy Court estimated that allowed general unsecured claims wereapproximately $31.9 billion. In August 2017, a group of plaintiffs’ attorneys alleged that they had entered into an agreement to settle “late claims” againstthe GUC Trust (i.e., claims filed after the deadline established by the Bankruptcy Court). Although the Bankruptcy Court ruled in January 2018 that thealleged agreement was not binding or enforceable, litigation continues over whether late claims can be asserted against the GUC Trust. If such late claims areallowed by the Bankruptcy Court and if such late claims are allowed in certain aggregate amounts sought by plaintiffs, then GM may be required to issueAdjustment Shares to the GUC Trust. We are currently unable to estimate any reasonably possible loss or range of loss that may result from this matter.Securities and Derivative Matters In a putative shareholder class action filed in the United States District Court for the Eastern District of Michigan(Eastern District) on behalf of purchasers of our common stock from November 17, 2010 to July 24, 2014, the lead plaintiff alleged that GM and severalcurrent and former officers and employees made material misstatements and omissions relating to problems with the ignition switch and other matters in SECfilings and other public statements. In 2016 the Eastern District entered a judgment approving a class-wide settlement of the class action for $300 million.One shareholder filed an appeal of the decision approving the settlement. The United States Court of Appeals for the Sixth Circuit affirmed the judgmentapproving the settlement in November 2017. The objector subsequently filed petitions for rehearing and for en banc review before the entire Sixth Circuit.Both of those petitions remain pending.Three shareholder derivative actions against certain current and former GM directors and officers are pending in the Eastern District. In two of thoseactions, the Eastern District has stayed GM's deadline to respond pending the decision of the Delaware Supreme Court in an unrelated case concerning apotentially dispositive legal issue. The court is still considering a motion to dismiss in the other action. Two derivative actions filed in the Circuit Court ofWayne County, Michigan, which have been consolidated, are also stayed pending disposition of the federal derivative actions.Government Matters In connection with the 2014 recalls, we have from time to time received subpoenas and other requests for information related toinvestigations by agencies or other representatives of U.S. federal, state and the Canadian governments. Various governmental actions were conclusivelyresolved in 2017, including an investigation by the SEC, the investigations into consumer protection claims by 49 state attorneys general and the litigationinitiated by the Orange County District Attorney. GM72Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)is cooperating with all reasonable pending requests for information. Any existing governmental matters or investigations could in the future result in theimposition of damages, fines, civil consent orders, civil and criminal penalties or other remedies.Deferred Prosecution Agreement In September 2015, GM entered into the DPA with the U.S. Attorney's Office regarding its investigation of the eventsleading up to certain recalls regarding faulty ignition switches.Under the DPA we consented to the filing of the Information in the Southern District charging GM with a scheme to conceal material facts from agovernment 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. Pursuant to the DPA we paid the United States $900 million as a financial penalty.Pursuant to the DPA, the U.S. Attorney’s Office agreed to recommend to the Southern District that prosecution of GM on the Information be deferredfor three years. The U.S. Attorney’s Office also agreed that if we are in compliance with all of our obligations under the DPA, the U.S. Attorney’s Office will,within 30 days after the expiration of the period of deferral (including any extensions thereto), seek dismissal with prejudice of the Information. The DPAfurther provides that, in the event the U.S. Attorney’s Office determines during the period of deferral of prosecution (or any extensions thereof) that we haveviolated any provision of the DPA, the U.S. Attorney’s Office may in its discretion either prosecute GM on the charges alleged in the Information or imposean extension of the period of deferral of prosecution of up to one additional year, but in no event will the total term of the deferral-of-prosecution periodunder the DPA exceed four years.In the DPA, we also agreed to retain the Monitor for a period of three years to review and assess our policies, practices or procedures related to statementsabout motor vehicle safety, the provision of information to those responsible for recall decisions, recall processes and addressing known defects in certifiedpre-owned vehicles. The U.S. Attorney's Office has the authority to lengthen the Monitor's term up to one year if the U.S. Attorney's Office determines thatGM has violated the DPA. Likewise, the U.S. Attorney's Office may shorten the Monitor's term if the U.S. Attorney's Office determines that a monitor is nolonger necessary. GM is required to pay the compensation and expenses of the Monitor and of the persons hired under his authority. The Monitorcommenced his term in November 2015.The total amount accrued for the 2014 recalls at December 31, 2017 reflects amounts for a combination of settled but unpaid matters, and for the remainingunsettled investigations, claims and/or lawsuits relating to the ignition switch recalls and other related recalls to the extent that such matters are probable andcan be reasonably estimated. The amounts accrued for those unsettled investigations, claims, and/or lawsuits represent 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 for at least aportion of the remaining matters, whether through settlement or judgment; however, we are currently unable to estimate an overall amount or range of lossbecause these matters involve significant uncertainties, including the legal theory or the nature of the investigations, claims and/or lawsuits, the complexityof the facts, the lack of documentation available with respect to particular cases or groups of cases, the results of any investigation or litigation and the timingof resolution of the investigation or litigations, including any appeals. We will continue to consider resolution of pending matters involving ignition switchrecalls and other recalls where it makes sense to do so.GM Korea Wage Litigation We are party to litigation with current and former hourly employees of GM Korea in the appellate court and Incheon DistrictCourt in Incheon, Korea. The group actions, which in the aggregate involve more than 10,000 employees, allege that GM Korea failed to include bonusesand certain allowances in its calculation of Ordinary Wages due under Korean regulations. In 2012 the Seoul High Court (an intermediate level appellatecourt) affirmed a decision in one of these group actions involving five GM Korea employees which was contrary to GM Korea's position. GM Korea appealedto the Supreme Court of the Republic of Korea (Supreme Court). In 2014 the Supreme Court remanded the case to the Seoul High Court for considerationconsistent with earlier Supreme Court precedent holding that while fixed bonuses should be included in the calculation of Ordinary Wages, claims forretroactive application of this rule would be barred under certain circumstances. In 2015, on reconsideration, the Seoul High Court held in GM Korea's favor,after which the plaintiffs appealed to the Supreme Court. In 2014 GM Korea and its labor union agreed to include bonuses and certain allowances in OrdinaryWages retroactive to March 1, 2014. Therefore our accrual related to these group actions was reclassified from a contingent liability to the Pensions liability.We estimate our reasonably possible loss in excess of amounts accrued to be approximately $592 million at December 31, 2017.GM Korea is also party to litigation with current and former salaried employees over allegations relating to ordinary wages regulation. In September 2017,the Seoul High Court issued a ruling concerning two salary cases and another salaried worker case.73Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)Among other things, the Seoul High Court held that there was no agreement between GM Korea and its salaried workers regarding whether to include fixedbonuses in the calculation of ordinary wages. As a result, the workers are not barred from filing retroactive wage claims. GM Korea appealed this ruling to theSeoul Supreme Court. At December 31, 2017 we identified a reasonably possible loss for salary cases in excess of the amounts accrued of approximately $185million. 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.GM Brazil Indirect Tax Claim In March 2017, the Supreme Court of Brazil issued a decision concluding that a certain state value added tax should not beincluded in the calculation of federal gross receipts taxes. The decision reduces GM Brazil’s gross receipts tax prospectively and, potentially, retrospectively.The retrospective right to recover is under judicial review. If the Supreme Court of Brazil grants retrospective recovery we estimate potential recoveries of upto $1.4 billion. However, given the remaining uncertainty regarding the ultimate judicial resolution of this matter, we are unable to assess the likelihood ofany favorable outcome at this time. We have not recorded any amounts relating to the retrospective nature of this matter.PSA Group Transaction Our wholly owned subsidiary (The Seller) has agreed to indemnify PSA Group for certain losses resulting from any inaccuracy ofthe representations and warranties or breaches of our covenants included in the Agreement and for certain other liabilities including emissions and productliabilities. The Company has entered into a guarantee for the benefit of PSA Group and pursuant to which the Company has agreed to guarantee the Seller'sobligation to indemnify PSA Group. Certain of these indemnification obligations are subject to time limitations, thresholds and/or caps as to the amount ofrequired payments. We are currently unable to estimate any reasonably possible overall amounts or range of loss that may result from claims made underthese indemnities, if any.PSA Group has provided a number of working capital and other adjustments under the Agreement and other ancillary agreements, many of which arecustomary in these types of transactions. We currently believe that post-closing adjustments under the Agreement, if any, would not have a material impacton our results of operations.Other Litigation-Related Liability and Tax Administrative Matters Various other legal actions, including class actions, governmental investigations,claims and proceedings are pending against us or our related companies or joint ventures, including matters arising out of alleged product defects;employment-related matters; product and workplace safety, vehicle emissions, including CO2 and nitrogen oxide, fuel economy, and related governmentalregulations; product warranties; financial services; dealer, supplier and other contractual relationships; government regulations relating to payments toforeign companies; government regulations relating to competition issues; tax-related matters not subject to the provision of ASC 740, Income Taxes(indirect tax-related matters); product design, manufacture and performance; consumer protection laws; and environmental protection laws, including lawsregulating air emissions, water discharges, waste management and environmental remediation.There are several putative class actions pending against GM in federal courts in the U.S. and in the Provincial Courts in Canada alleging that variousvehicles sold including model year 2011-2016 Duramax Diesel Chevrolet Silverado and GMC Sierra vehicles, violate federal and state emission standards.GM also faces a series of additional lawsuits based primarily on allegations in the Duramax suit, including putative shareholder class actions claimingviolations of federal securities law. The securities and shareholder demand lawsuits have been voluntarily stayed by the plaintiffs. At this stage of theseproceedings, we are unable to provide an evaluation of the likelihood that a loss will be incurred or an estimate of the amounts or range of possible loss.We believe that appropriate accruals have been established for losses that are probable and can be reasonably estimated. It is possible that the resolution ofone or more of these matters could exceed the amounts accrued in an amount that could be material to our results of operations. We also from time to timereceive subpoenas and other inquiries or requests for information from agencies or other representatives of U.S. federal, state and foreign governments on avariety of issues.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 administrative proceedings are indirect tax-related and may require that we deposit funds in escrow orprovide an alternative form of security which may range from $250 million to $650 million at December 31, 2017. Some of the matters may involvecompensatory, punitive or other treble damage claims, environmental remediation programs or sanctions that, if granted, could require us to pay damages ormake other expenditures in amounts that could not be reasonably estimated at December 31, 2017. We believe that appropriate accruals have beenestablished for losses that are probable and can be reasonably estimated. For indirect tax-related matters we estimate our reasonably possible loss in excess ofamounts accrued to be up to approximately $1.0 billion at December 31, 2017.74Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)Takata Matters In May 2016 NHTSA issued an amended consent order requiring Takata to file DIRs for previously unrecalled front airbag inflators thatcontain phased-stabilized ammonium nitrate-based propellant without a moisture absorbing desiccant on a multi-year, risk-based schedule through 2019impacting tens of millions of vehicles produced by numerous automotive manufacturers. NHTSA concluded that the likely root cause of the rupturing of theairbag inflators is a function of time, temperature cycling and environmental moisture.Although we do not believe there is a safety defect at this time in any unrecalled GM vehicles within scope of the Takata DIRs, in cooperation with NHTSAwe filed 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 those GMT900vehicles. On November 28, 2016 NHTSA granted GM's deferral request in connection with this petition. The deferral provided GM until August 31, 2017 topresent evidence and analysis that our vehicles do not pose an unreasonable risk to motor vehicle safety.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 2016DIRs. On the same day, we also filed a second petition for inconsequentiality and deferral of decision with respect to the vehicles subject to our January 2017DIRs. On January 18, 2017, NHTSA consolidated our first and second petitions for inconsequentiality and will rule on both at the same time.On August 25, 2017, we filed a supplemental brief in support of our petitions that provided NHTSA with the results of our long-term study and testing andthe basis for our determination that the inflators in these vehicles do not present an unreasonable risk to safety and that no repair should ultimately berequired. In our brief, we requested that NHTSA grant our petitions or, in the alternative, grant an additional deferral period to provide time for further testing.We filed a third set of Preliminary DIRs for certain GMT900 vehicles on January 9, 2018. These January 2018 DIRs are consistent with GM's May 2016DIRs and January 2017 DIRs. On the same day, we also filed a third petition for inconsequentiality with respect to the vehicles subject to our January 2018DIRs.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 propellant, degradation and rupture risk. For example, the airbag inflators used in the vehicles are a variant engineeredspecifically for our vehicles, and include features such as greater venting, unique propellant wafer configurations, and machined steel end caps. The inflatorsare packaged in the instrument panel in such a way as to minimize exposure to moisture from the climate control system. Also, these vehicles have featuresthat minimize the maximum temperature to which the inflator will be exposed, such as larger interior volumes and standard solar absorbing windshields andside glass.Accordingly, no warranty provision has been made for any repair associated with our vehicles subject to the Preliminary DIRs and amended consent order.However, in the event we are ultimately obligated to repair the vehicles subject to current or future Takata DIRs under the amended consent order in the U.S.,we estimate a reasonably possible impact to GM of approximately $1.0 billion.GM is engaged in discussions with regulators outside the U.S. with respect to Takata inflators. There are differences in vehicle and inflator design betweenthe relevant vehicles sold internationally and those sold in the U.S. We continue to gather and analyze evidence about these inflators and to share ourfindings with regulators. We were required to recall certain vehicles sold outside of the U.S. in the three months ended September 30, 2017 to replace Takatainflators in these vehicles. Additional recalls, if any, could be material to our results of operations and cash flows. We continue to monitor the internationalsituation.Through January 30, 2018 we are aware of one putative class action pending against GM in federal court in the U.S., one putative class action in Mexicoand three putative class actions pending in various Provincial Courts in Canada arising out of allegations that airbag inflators manufactured by Takata aredefective. At this 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 theamounts or range of possible loss. On August 16, 2017, the bankruptcy court hearing the Takata bankruptcy entered an order staying all Takata relatedlitigation against automotive manufacturers, including GM, through February 2018.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 indemnify75Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)dealers for certain product liability related claims including products sold by General Motors Corporation's dealers. At December 31, 2017 and 2016liabilities of $595 million and $656 million were recorded in Accrued liabilities and Other liabilities for the expected cost of all known product liabilityclaims plus an estimate of the expected cost for product liability claims that have already been incurred and are expected to be filed in the future for which weare self-insured. It is reasonably possible that our accruals for product liability claims may increase in future periods in material amounts, although we cannotestimate a reasonable range of incremental loss 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 2018 to 2032 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 $5.1 billion and$4.3 billion for these guarantees at December 31, 2017 and 2016, the majority of which relate to the indemnification agreements.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, 2017 and 2016our redemption liability was insignificant, our deferred revenue was $283 million and $286 million, and qualified cardholders had rebates available, net ofdeferred program revenue, of $1.5 billion and $1.9 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:20182019202020212022ThereafterMinimum commitments(a)$284$268$222$189$123$372Sublease income(62)(63)(50)(43)(38)(166)Net minimum commitments$222$205$172$146$85$206__________(a)Certain leases contain escalation clauses and renewal or purchase options.Rental expense under operating leases was $284 million, $270 million and $317 million in the years ended December 31, 2017, 2016 and 2015.Note 18. Income Taxes Years Ended December 31,201720162015U.S. income$8,399$9,989$6,994Non-U.S. income (loss)1,332(263)(816)Income before income taxes and equity income$9,731$9,726$6,17876Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued) Years Ended December 31,201720162015Current income tax expense (benefit)U.S. federal$18$(126)$5U.S. state and local83655Non-U.S.552572817Total current income tax expense653511827Deferred income tax expense (benefit)U.S. federal7,8311,8651,735U.S. state and local(187)264243Non-U.S.3,23699(4,024)Total deferred income tax expense (benefit)10,8802,228(2,046)Total income tax expense (benefit)$11,533$2,739$(1,219)Provisions are made for estimated U.S. and non-U.S. income taxes which may be incurred on the reversal of our basis differences in investments in foreignsubsidiaries and corporate joint ventures not deemed to be indefinitely reinvested. Taxes have not been provided on basis differences in investmentsprimarily as a result of earnings in foreign subsidiaries which are deemed indefinitely reinvested of $2.8 billion and $2.4 billion at December 31, 2017 and2016. Additional basis differences related to investments in nonconsolidated China JVs exist of $4.1 billion at December 31, 2017 and 2016 as a result offresh-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 Europe. Years Ended December 31,201720162015Income tax expense at U.S. federal statutory income tax rate$3,406$3,404$2,162State and local tax expense(76)190173Non-U.S. income taxed at other than 35%(145)(61)37U.S. tax on Non-U.S. income(941)(894)(151)Change in valuation allowances2,712237(3,554)Change in tax laws7,19414729Research and manufacturing incentives(313)(266)(367)Settlements of prior year tax matters(256)(46)—Realization of basis differences in affiliates—(94)—Foreign currency remeasurement23(2)209Financial penalty under the DPA(a)——315Other adjustments(71)124(72)Total income tax expense (benefit)$11,533$2,739$(1,219)_________(a)Refer to Note 17 for additional information on the DPA.Deferred Income Tax Assets and Liabilities Deferred income tax assets and liabilities at December 31, 2017 and 2016 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:77Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)December 31, 2017December 31, 2016Deferred tax assetsPostretirement benefits other than pensions$1,948$2,720Pension and other employee benefit plans3,2855,141Warranties, dealer and customer allowances, claims and discounts5,6758,074Property, plant and equipment—397U.S. capitalized research expenditures4,4136,127U.S. operating loss and tax credit carryforwards(a)8,5788,987Non-U.S. operating loss and tax credit carryforwards(b)5,1034,406Miscellaneous1,6971,733Total deferred tax assets before valuation allowances30,69937,585Less: valuation allowances(6,690)(3,908)Total deferred tax assets24,00933,677Deferred tax liabilitiesProperty, plant and equipment418—Intangible assets7351,027Total deferred tax liabilities1,1531,027Net deferred tax assets$22,856$32,650_________(a)At December 31, 2017 U.S. operating loss and tax credit carryforwards of $8.6 billion expire by 2037 if not utilized.(b)At December 31, 2017 Non-U.S. operating loss and tax credit carryforwards of $925 million expire by 2037 if not utilized and the remaining balance of $4.2 billion may becarried forward indefinitely.Valuation Allowances During the year ended December 31, 2017 there was a $2.3 billion increase in the valuation allowance related to deferred tax assetsthat will no longer be realizable as a result of the sale of the Opel/Vauxhall Business as described in Note 3. At December 31, 2017 valuation allowancesagainst deferred tax assets of $6.7 billion were comprised of cumulative losses and tax credits, primarily in Germany, Spain and South Korea.At December 31, 2016 valuation allowances against deferred tax assets of $3.9 billion were comprised of cumulative losses and tax credits, primarily inSpain, South Korea and certain U.S. states.Uncertain Tax Positions The following table summarizes activity of the total amounts of unrecognized tax benefits:Years Ended December 31,201720162015Beginning balance$1,182$1,337$1,705Additions to current year tax positions1604953Additions to prior years' tax positions44896114Reductions to prior years' tax positions(195)(192)(349)Reductions in tax positions due to lapse of statutory limitations(44)(103)(119)Settlements(11)(1)(3)Other17(4)(64)Ending balance$1,557$1,182$1,337At December 31, 2017 and 2016 there were $390 million and $682 million of unrecognized tax benefits that if recognized would favorably affect oureffective tax rate in the future. In the years ended December 31, 2017, 2016 and 2015 income tax related interest and penalties were insignificant. AtDecember 31, 2017 and 2016 we had liabilities of $152 million and $160 million for income tax related interest and penalties.78Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)At December 31, 2017 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 2007 to 2017 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.The Tax Cuts and Jobs Act (the Tax Act) was signed into law on December 22, 2017. The Tax Act changed many aspects of U.S. corporate income taxationand included reduction of the corporate income tax rate from 35% to 21%, implementation of a territorial tax system and imposition of a tax on deemedrepatriated earnings of foreign subsidiaries. We recognized the tax effects of the Tax Act in the year ended December 31, 2017 and recorded $7.3 billion intax expense which relates almost entirely to the remeasurement of deferred tax assets to the 21% tax rate. Upon completion of our 2017 U.S. income tax returnin 2018 we may identify additional remeasurement adjustments to our recorded deferred tax assets. We will continue to assess our provision for income taxesas future guidance is issued but do not currently anticipate significant revisions will be necessary. Any such revisions will be treated in accordance with themeasurement period guidance outlined in Staff Accounting Bulletin No. 118.Note 19. Restructuring and Other InitiativesWe have executed various restructuring and other initiatives and we may execute additional initiatives in the future, if necessary, to streamlinemanufacturing capacity and other costs to improve the utilization of remaining facilities. To the extent these programs involve voluntary separations, noliabilities are generally recorded until offers to employees are accepted. If employees are involuntarily terminated, a liability is generally recorded at thecommunication date. Related charges are recorded in Automotive cost of sales and Automotive selling, general and administrative expense. The followingtable summarizes the reserves and charges related to restructuring and other initiatives, including postemployment benefit reserves and charges: Years Ended December 31,201720162015Balance at beginning of period$268$383$627Additions, interest accretion and other330412545Payments(315)(490)(360)Revisions to estimates and effect of foreign currency(56)(37)(429)Balance at end of period$227$268$383In the year ended December 31, 2017 restructuring and other initiatives primarily include restructuring actions announced in the three months ended June30, 2017 in GMI. These actions related primarily to the withdrawal of Chevrolet from the Indian and South African markets at the end of 2017 and thetransition of our South Africa manufacturing operations to Isuzu Motors. We intend to continue manufacturing vehicles in India for sale to certain exportmarkets. We recorded charges of $460 million in GMI primarily consisting of $297 million of asset impairments, sale incentives, inventory provisions andother charges, not reflected in the table above, and $163 million of dealer restructurings, employee separations and other contract cancellation costs, whichare reflected in the table above. We completed these programs in GMI in 2017.Other GMI restructuring programs reflected in the table above include separation and other programs in Australia, Korea and India and the withdrawal ofthe Chevrolet brand from Europe. Collectively, these programs had a total cost of $892 million since inception in 2013 through the completion of theprograms in the year ended December 31, 2017.In the year ended December 31, 2016 restructuring and other initiatives related primarily to charges of $240 million in the three months ended March 31,2016 in GMNA related to the cash severance incentive program to qualified U.S. hourly employees under our 2015 labor agreement with the UAW andinsignificant costs for separation and other programs in Australia, Korea and India and the withdrawal of Chevrolet brand from Europe.79Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)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 in GMNA and costs incurred of$324 million related to the separation and other programs in Australia, Korea, Thailand, Indonesia, India and the exit of Russia and the withdrawal of theChevrolet brand from Europe.Note 20. 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 31,2017 and 2016 we had 1.4 billion and 1.5 billion shares of common stock issued and outstanding.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, $1.52 and $1.38 and our total dividends paid on common stock were $2.2 billion, $2.3 billion and $2.2 billion for the years endedDecember 31, 2017, 2016 and 2015. 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, 2017, 2016 and 2015 we purchased 120 million, 77 million and 102 million shares of our outstanding common stock for$4.5 billion, $2.5 billion and $3.5 billion as part of the common stock repurchase program announced in March 2015, which our Board of Directors increasedand extended in January 2016 and January 2017.Warrants At December 31, 2016 we had 42 million warrants outstanding that we issued in July 2009. The warrants are exercisable at any time prior to July10, 2019 at an exercise price of $18.33 per share. We had 22 million warrants outstanding at December 31, 2017.GM Financial Preferred Stock In September 2017 GM Financial issued $1.0 billion of Fixed-to-Floating Rate Cumulative Perpetual Preferred Stock,Series A, $0.01 par value, with a liquidation preference of $1,000 per share. The preferred stock is classified as noncontrolling interests in our consolidatedfinancial statements. Dividends will be paid semi-annually when declared starting March 30, 2018 at a fixed rate of 5.75% or approximately $58 millionannually for the first 10 years after issuance, after which, if the notes have not been redeemed, dividends will be paid based on a floating rate.The following table summarizes the significant components of Accumulated other comprehensive loss: Years Ended December 31,201720162015Foreign Currency Translation AdjustmentsBalance at beginning of period$(2,355)$(2,034)$(1,064)Other comprehensive income (loss) and noncontrolling interests before reclassification adjustment,net of tax(a)(b)560(317)(1,168)Reclassification adjustment, net of tax(a)(c)189(4)198Other comprehensive income (loss), net of tax(a)749(321)(970)Balance at end of period$(1,606)$(2,355)$(2,034)Defined Benefit PlansBalance at beginning of period$(6,968)$(5,999)$(7,006)Other comprehensive income (loss) and noncontrolling interests before reclassification adjustment(b)(798)(1,546)813Tax expense (benefit)(98)(459)41Other comprehensive income (loss) and noncontrolling interests before reclassification adjustment,net of tax(b)(700)(1,087)772Reclassification adjustment, net of tax(a)(d)1,270118235Other comprehensive income (loss), net of tax570(969)1,007Balance at end of period$(6,398)$(6,968)$(5,999)__________80Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)(a)The income tax effect was insignificant in the years ended December 31, 2017, 2016 and 2015.(b)The noncontrolling interests are insignificant in the years ended December 31, 2017, 2016 and 2015.(c)The reclassification adjustment for the year ended December 31, 2015 is related to the exit of Russia and is included in Automotive cost of sales.(d)$1.2 billion is included in the loss on sale of the Opel/Vauxhall Business in the year ended December 31, 2017. An insignificant amount is included in the computation ofperiodic pension and OPEB (income) expense in the years ended December 31, 2017, 2016 and 2015.Note 21. Earnings Per ShareBasic and diluted earnings (loss) per share are computed by dividing Net income (loss) attributable to common stockholders by the weighted-averagecommon shares outstanding in the period. Diluted earnings (loss) per share is computed by giving effect to all potentially dilutive securities that areoutstanding. Years Ended December 31,201720162015Basic earnings per shareIncome from continuing operations(a)$348$9,428$9,662Less: cumulative dividends on GM Financial preferred stock(16)——Income from continuing operations attributable to common stockholders3329,4289,662Income (loss) from discontinued operations, net of tax(4,212)(1)25Net income (loss) attributable to common stockholders$(3,880)$9,427$9,687Weighted-average common shares outstanding1,4651,5401,586Basic earnings per common share – continuing operations$0.23$6.12$6.09Basic earnings (loss) per common share – discontinued operations$(2.88)$—$0.02Basic earnings (loss) per common share$(2.65)$6.12$6.11Diluted earnings per shareIncome from continuing operations attributable to common stockholders – diluted(a)$332$9,428$9,661Income (loss) from discontinued operations, net of tax – diluted$(4,212)$(1)$25Net income (loss) attributable to common stockholders – diluted$(3,880)$9,427$9,686Weighted-average common shares outstanding – basic1,4651,5401,586Dilutive effect of warrants and awards under stock incentive plans273054Weighted-average common shares outstanding – diluted1,4921,5701,640Diluted earnings per common share – continuing operations$0.22$6.00$5.89Diluted earnings (loss) per common share – discontinued operations$(2.82)$—$0.02Diluted earnings (loss) per common share$(2.60)$6.00$5.91 Potentially dilutive securities(b)— — 72__________(a)Net of Net (income) loss attributable to noncontrolling interests.(b)Potentially dilutive securities attributable to outstanding warrants and stock options were excluded from the computation of diluted EPS because the securities would have hadan antidilutive effect.Note 22. Stock Incentive PlansWe grant to certain employees RSUs, RSAs, PSUs and stock options (collectively, stock incentive awards) under our 2016 Equity Incentive Plan and 2017Long-Term Incentive Plan (LTIP) and prior to the 2017 LTIP, under our 2014 and 2009 LTIPs. The 2017 LTIP was approved by stockholders in June 2017and replaced the 2014 LTIP. Shares awarded under the plans are subject to forfeiture if the participant leaves the company for reasons other than thosepermitted under the plans such as retirement, death or disability.81Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)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 expire 10 years from the grant date. Our performance-based stock options vest ratably over 55 months based onthe performance of our common stock relative to that of a specified peer group. Our service-based stock options vest ratably over 19 months to three years.In connection with our acquisition described in Note 10, 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, 201755.1 $19.77 2.5Granted16.7 $26.75 Settled(16.3) $24.65 Forfeited or expired(2.6) $26.67 Units outstanding at December 31, 201752.9 $21.75 2.0__________(a)Includes the target amount of PSUs.Our weighted-average assumptions used to value our stock options are a dividend yield of 4.43% and 4.60%, expected volatility of 25.0% and 26.1%, arisk-free interest rate of 1.97% and 2.00%, and an expected option life of 5.84 and 6.59 years for options issued during the years ended December 31, 2017and 2015. There were no stock options issued during the year ended December 31, 2016.Total compensation expense related to the above awards was $585 million, $627 million and $422 million in the years ended December 31, 2017, 2016and 2015.At December 31, 2017 the total unrecognized compensation expense for nonvested equity awards granted was $278 million. This expense is expected tobe recorded over a weighted-average period of 1.7 years. The total fair value of stock incentive awards vested was $421 million, $325 million and $228million in the years ended December 31, 2017, 2016 and 2015.Note 23. Supplementary Quarterly Financial Information (Unaudited)The following tables summarize supplementary quarterly financial information: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter2017 Total net sales and revenue$37,266 $36,984 $33,623 $37,715Automotive gross margin$5,081 $4,786 $3,955 $4,758Income (loss) from continuing operations$2,686 $2,433 $114 $(4,903)(Loss) from discontinued operations, net of tax$(69) $(770) $(3,096) $(277)Net income (loss) attributable to stockholders$2,608 $1,660 $(2,981) $(5,151)Basic earnings (loss) per common share – continuing operations$1.78 $1.62 $0.08 $(3.46)Basic (loss) per common share – discontinued operations$(0.05) $(0.51) $(2.14) $(0.19)Diluted earnings (loss) per common share – continuing operations$1.75 $1.60 $0.08 $(3.46)Diluted (loss) per common share – discontinued operations$(0.05) $(0.51) $(2.11) $(0.19)82Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)In the three months ended June 30, 2017, September 30, 2017 and December 31, 2017, we collectively recorded a total charge of $6.2 billion as a result ofthe sale of the European Business, of which $3.9 billion is recorded in Income (loss) from discontinued operations, net of tax, and $2.3 billion is related toIncome tax expense. In the three months ended December 31, 2017, the Company recorded a $7.3 billion tax expense related to the U.S. tax reformlegislation. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter2016 Total net sales and revenue$33,016 $37,383 $38,889 $39,896Automotive gross margin$4,405 $5,305 $5,391 $4,605Income from continuing operations$1,923 $2,744 $2,707 $1,895Income (loss) from discontinued operations, net of tax$8 $106 $5 $(120)Net income attributable to stockholders$1,953 $2,866 $2,773 $1,835Basic earnings per common share – continuing operations$1.25 $1.78 $1.79 $1.29Basic earnings (loss) per common share – discontinued operations$0.01 $0.07 $— $(0.08)Diluted earnings per common share – continuing operations$1.23 $1.74 $1.76 $1.27Diluted earnings (loss) per common share – discontinued operations$0.01 $0.07 $— $(0.08)Note 24. Segment ReportingWe report segment information consistent with the way the chief operating decision maker evaluates the operating results and performance of theCompany. During the three months ended December 31, 2017, we changed our automotive segments as a result of changes in our organizational structure andthe evolution of our business resulting from the sale of the Opel/Vauxhall Business and the various strategic actions taken in the GMIO region. As a result,our GMSA and GMIO operating segments are now reported as one, combined reportable international segment, GMI. Our GMNA and GM Financial segmentswere not impacted. All periods presented have been recast to reflect the changes.We analyze the results of our business through the following segments: GMNA, GMI and GM Financial. As discussed in Note 3, the European Business ispresented as discontinued operations and is excluded from our segment results for all periods presented. The European Business was previously reported asour GME segment and part of GM Financial. The chief operating decision maker evaluates the operating results and performance of our automotive segmentsthrough earnings before interest and income taxes-adjusted, which is presented net of noncontrolling interests. The chief operating decision maker evaluatesGM Financial through earnings before income taxes-adjusted because interest income and interest expense are part of operating results when assessing andmeasuring the operational and financial performance of the segment. Each segment has a manager responsible for executing our strategic initiatives. Ourautomotive manufacturing operations are integrated within the segments, benefit from broad-based trade agreements and are subject to regulatoryrequirements. While not all vehicles within a segment are individually profitable on a fully allocated cost basis, those vehicles attract customers to dealershowrooms and help maintain sales volumes for other, more profitable vehicles and contribute towards meeting required fuel efficiency standards. As a resultof these and other factors, we do not manage our business on an individual brand or vehicle basis.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 meets the demands of customers in North America with vehicles developed, manufactured and/or marketed under the Buick, Cadillac, Chevroletand GMC brands. GMI primarily meets the demands of customers outside North America with vehicles developed, manufactured and/or marketed under theBuick, Cadillac, Chevrolet, GMC, and Holden brands. We also have equity ownership stakes in entities that meet the demands of customers in othercountries, primarily China, with vehicles developed, manufactured and/or marketed under the Baojun, Buick, Cadillac, Chevrolet, Jiefang and Wulingbrands.83Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)Our automotive operations' interest income and interest expense, Maven, legacy costs from the Opel/Vauxhall Business (primarily pension costs), corporateexpenditures including autonomous vehicle-related engineering and other costs and certain nonsegment specific revenues and expenses are recordedcentrally in Corporate. Corporate assets consist primarily of cash and cash equivalents, marketable securities, our investment in Lyft, goodwill, intangibles,Maven vehicles and intercompany balances. Retained net underfunded pension liabilities related to the European Business are also recorded in Corporate.All intersegment balances and transactions have been eliminated in consolidation.The following tables summarize key financial information by segment:At and For the Year Ended December 31, 2017GMNAGMICorporateEliminationsTotalAutomotiveGM FinancialEliminationsTotalNet sales and revenue$111,345$21,920$342$133,607$12,151$(170)$145,588Earnings (loss) before interest and taxes-adjusted$11,889$1,300$(1,534)$11,655$1,196$(7)$12,844Adjustments(a)$—$(540)$(114) $(654) $— $— (654)Automotive interest income266Automotive interest expense(575)Net (loss) attributable to noncontrolling interests(18)Income before income taxes11,863Income tax expense(11,533)Income from continuing operations330Loss from discontinued operations, net of tax(4,212)Net loss attributable to noncontrolling interests18Net loss attributable to stockholders$(3,864)Equity in net assets of nonconsolidated affiliates$68$7,818$—$—$7,886$1,187$—$9,073Total assets$99,846$27,712$31,267$(42,750)$116,075$97,251$(844)$212,482Expenditures for property$7,704$607$48$—$8,359$94$—$8,453Depreciation and amortization$4,654$708$33$(1)$5,394$6,573$—$11,967Impairment charges$78$211$5$—$294$—$—$294Equity income$8$1,951$—$—$1,959$173$—$2,132__________(a)Consists of charges of $460 million related to restructuring actions in India and South Africa in GMI; charges of $80 million associated with the deconsolidation of Venezuela in GMI and charges of $114 million forlegal related matters related to the ignition switch recall in Corporate.84Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)At and For the Year Ended December 31, 2016GMNAGMICorporateEliminationsTotalAutomotiveGM FinancialEliminationsTotalNet sales and revenue$119,113$20,943$149$140,205$8,983$(4)$149,184Earnings (loss) before interest and taxes-adjusted$12,388$767$(1,073)$12,082$763$3$12,848Adjustments(a)$—$—$(300)$(300)$—$—(300)Automotive interest income182Automotive interest expense(563)Net (loss) attributable to noncontrolling interests(159)Income before income taxes12,008Income tax expense(2,739)Income from continuing operations9,269Loss from discontinued operations, net of tax(1)Net loss attributable to noncontrolling interests159Net income attributable to stockholders$9,427Equity in net assets of nonconsolidated affiliates$74$7,978$—$—$8,052$944$—$8,996Total assets(b)$103,879$27,273$39,042$(35,139)$135,055$87,947$(1,312)$221,690Expenditures for property$7,338$943$12$(2)$8,291$93$—$8,384Depreciation and amortization$4,292$702$19$(5)$5,008$4,678$—$9,686Impairment charges$65$68$—$—$133$—$—$133Equity income$159$1,971$—$—$2,130$152$—$2,282__________(a)Consists of a net charge of $300 million for legal related matters related to the ignition switch recall.(b)Assets in Corporate and GM Financial include assets classified as held for sale.At and For the Year Ended December 31, 2015GMNAGMICorporateEliminationsTotalAutomotiveGM FinancialEliminationsTotalNet sales and revenue$106,744$22,970$150$129,864$5,867$(6)$135,725Earnings (loss) before interest and taxes-adjusted$11,354$665$(1,248)$10,771$679$(1)$11,449Adjustments(a)$47$(1,461)$(1,785)$(3,199)$—$—(3,199)Automotive interest income167Automotive interest expense(423)Gain on extinguishment of debt449Net (loss) attributable to noncontrolling interests(72)Income before income taxes8,371Income tax benefit1,219Income from continuing operations9,590Income from discontinued operations, net of tax25Net loss attributable to noncontrolling interests72Net income attributable to stockholders$9,687Equity in net assets of nonconsolidated affiliates$94$8,115$—$—$8,209$986$—$9,195Total assets(b)$92,651$27,351$31,335$(21,916)$129,421$66,081$(1,164)$194,338Expenditures for property$5,697$982$66$(5)$6,740$73$—$6,813Depreciation and amortization$3,755$707$16$(3)$4,475$2,278$—$6,753Impairment charges$370$364$—$—$734$—$—$734Equity income$20$2,057$—$—$2,077$116$—$2,193__________(a)Consists primarily of costs related to the Russia exit of $438 million in GMI, which is net of noncontrolling interests; asset impairment charges of $297 million related to our Thailand subsidiaries in GMI;Venezuela currency devaluation and asset impairment charges of $720 million in GMI; charges related to the ignition switch recall including the Compensation Program of $195 million and various settlements andlegal related matters of approximately $1.6 billion in Corporate; and other of $41 million.(b)Assets in Corporate and GM Financial include assets classified as held for sale.85Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS —— (Continued)Automotive revenue is attributed to geographic areas based on the country of sale. GM Financial revenue is attributed to the geographic area where thefinancing is originated. The following table summarizes information concerning principal geographic areas: At and For the Years Ended December 31, 2017 2016 2015 Net Sales andRevenue Long-Lived Assets Net Sales andRevenue Long-Lived Assets Net Sales andRevenue Long-Lived AssetsAutomotive U.S.$100,674 $24,473 $110,661 $22,241 $100,082 $21,091Non-U.S.32,775 12,715 29,544 11,258 29,782 9,649GM Financial U.S.10,489 40,674 7,462 32,506 4,357 18,501Non-U.S.1,650 2,467 1,517 2,050 1,504 1,749Total consolidated$145,588 $80,329 $149,184 $68,055 $135,725 $50,990No individual country other than the U.S. represented more than 10% of our total Net sales and revenue or Long-lived assets.Note 25. 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 31,201720162015Accounts receivable$1,402$(1,249)$(16)Wholesale receivables funded by GM Financial, net(2,099)(2,184)(820)Inventories440(75)(1,209)Automotive equipment on operating leases(263)785520Change in other assets108(939)(572)Accounts payable(362)3,1951,658Income taxes payable(3)(162)88Accrued and other liabilities(2,238)1,209(857)Total$(3,015)$580$(1,208)Cash paid for income taxes and interestCash paid for income taxes$656$676$740Cash paid for interest (net of amounts capitalized) – Automotive$501$460$333Cash paid for interest (net of amounts capitalized) – GM Financial2,5711,7611,204Total cash paid for interest (net of amounts capitalized)$3,072$2,221$1,537* * * * * * *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 reported86Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESwithin the specified time periods and accumulated and communicated to our management, including our principal executive officer and principal financialofficer, as appropriate, to allow timely decisions regarding required disclosure.Our 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, 2017. 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, 2017.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, 2017, 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, 2017. Based onmanagement's assessment, we have concluded that our internal control over financial reporting was effective at December 31, 2017.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, 2017 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 and Chief Executive Officer Charles K. Stevens IIIExecutive Vice President and Chief Financial OfficerFebruary 6, 2018 February 6, 2018* * * * * * *Item 9B. Other InformationNone* * * * * * * 87Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESPART IIIItems 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 2018Annual Meeting of Stockholders, which will be filed with the SEC, pursuant to Regulation 14A, not later than 120 days after the end of the 2017 fiscal year,all of which information is hereby incorporated by reference in, and made part of, this Form 10-K, except disclosure of our executive officers, which isincluded in Item 1 of this report.* * * * * * *88Table 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 1.1 Underwriting Agreement, dated August 2, 2017, by and among General Motors Company, as issuer, and Deutsche Bank SecuritiesInc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley & Co. LLC, as representatives of the severalunderwriters named therein, incorporated herein by reference to Exhibit 1.1 to the Current Report on Form 8-K of General MotorsCompany filed August 8, 2017 Incorporated by Reference2.1 Master Agreement, dated as of March 5, 2017, between General Motors Holdings, LLC and Peugeot S.A., incorporated herein byreference to Exhibit 2.1 to the Quarterly Report on Form 10-Q of General Motors Company filed April 28, 2017** Incorporated by Reference3.1 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 December 13, 2017, incorporated herein by reference toExhibit 3.1 to the Current Report on Form 8-K of General Motors Company filed December 19, 2017 Incorporated by Reference3.3 Certificate of Elimination of Series A Fixed Rate Cumulative Perpetual Preferred Stock, incorporated herein by reference to Exhibit3.1 to the Current Report on Form 8-K of General Motors Company filed September 1, 2017 Incorporated by Reference3.4 Certificate of Elimination of 4.75% Series B Mandatory Convertible Junior Preferred Stock, incorporated herein by reference toExhibit 3.2 to the Current Report on Form 8-K of General Motors Company filed September 1, 2017 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 Reference4.5 Fourth Supplemental Indenture, dated as of August 7, 2017, 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 August 8, 2017 Incorporated by Reference4.6 Calculation Agency Agreement, dated as of August 7, 2017 between General Motors Company and the Bank of New York Mellon,as calculation agent, incorporated herein by reference to Exhibit 4.2 to the Current Report on Form 8-K of General Motors Companyfiled August 8, 2017 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 Reference89Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESExhibitNumber Exhibit Name 10.3* 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 Reference10.8* 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* 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 Reference10.15* 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 Reference10.16 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 Reference10.17† 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 Reference10.18† 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 Reference10.19† 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 Reference10.20 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 Reference10.21* 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 Reference90Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESExhibitNumber Exhibit Name 10.22* 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 byReference10.23* Form of General Motors Company Performance Stock Unit Award Agreement under the 2014 Long-Term Incentive Plan, incorporatedherein by reference to Exhibit 10.5 to the Quarterly Report on Form 10-Q of General Motors Company filed April 21, 2016 Incorporated byReference10.24* 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 byReference10.25* General Motors Company 2017 Short-Term Incentive Plan Filed Herewith10.26* General Motors Company 2017 Long-Term Incentive Plan, incorporated herein by reference to Exhibit 4.1 to the Registration Statementon Form S-8 of General Motors Company filed June 16, 2017 Incorporated byReference10.27* Form of Non-Qualified Stock Option Award Agreement under the General Motors Company 2017 Long-Term Incentive Plan,incorporated herein by reference to Exhibit 10.3 to the Current Report on Form 8-K of General Motors Company filed June 12, 2017 Incorporated byReference10.28* Form of General Motors Company Performance Share 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 April 28, 2017 Incorporated byReference10.29 Amendment, dated May 2, 2017 to the Master Agreement between General Motors Holdings, LLC and Peugeot S.A., incorporatedherein by reference to Exhibit 10.4 to the Quarterly Report on Form 10-Q of General Motors Company filed July 25, 2017 Incorporated byReference10.30 Amendment Number 2, dated July 30, 2017, to the Master Agreement between General Motors Holdings, LLC and Peugeot S.A.,incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q of General Motors Company filed October 24,2017 Incorporated byReference10.31 Amendment Number 3, dated October 30, 2017, to the Master Agreement between General Motors Holdings, LLC and Peugeot S.A. Filed Herewith12 Computations of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividendsfor the Years Ended December 31, 2017, 2016, 2015, 2014 and 2013 Filed Herewith16.1 Letter from Deloitte & Touche LLP, incorporated herein by reference to Exhibit 16.1 to the Current Report on Form 8-K of GeneralMotors Company filed September 29, 2017 Incorporated byReference21 Subsidiaries and Joint Ventures of the Registrant as of December 31, 2017 Filed Herewith23.1 Consent of Independent Registered Public Accounting Firm for audited financial statements of General Motors Company 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 thisReport101.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.**The Company agrees to furnish supplementally a copy of any omitted exhibit or schedule to the SEC upon request.* * * * * * *Item 16. Form 10-K SummaryNone* * * * * * *91Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESSIGNATURESPursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on itsbehalf by the undersigned, thereunto duly authorized. GENERAL MOTORS COMPANY (Registrant) By:/s/ MARY T. BARRA Mary T. BarraChairman and Chief Executive Officer Date:February 6, 2018 92Table of ContentsGENERAL MOTORS COMPANY AND SUBSIDIARIESPursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below on this 6th day of February 2018 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 and 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, Global Business Solutions and Chief Accounting OfficerThomas S. Timko /s/ THEODORE M. SOLSO* Lead DirectorTheodore M. Solso /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/ RICK HANSEN Rick Hansen Attorney-in-Fact 93Exhibit 10.25GENERAL MOTORS COMPANY2017 SHORT-TERM INCENTIVE PLANSection 1. Purpose. The purpose of the General Motors Company 2017 Short-Term Incentive Plan (as amended from time to time, the “Plan”) is to provide to certain employeesof General Motors Company (the “Company”) and its Subsidiaries incentive compensation based upon the achievement of financial, business and other performance goals. ThisPlan is also intended to permit the payment of bonuses that may qualify as performance-based compensation under Section 162(m) of the Code to officers and other employees ofthe Company.Section 2. Definitions. As used in the Plan, the following terms shall have the meanings set forth below:(a) “Award” means a cash incentive award opportunity granted to a Participant under the Plan with respect to a Performance Period in accordance with Section 5.(b) “Beneficiary” means a person designated by a Participant to receive payments that are available under the Plan in the event of the Participant’s death.(c) “Board” means the Board of Directors of the Company.(d) “Change in Control” means the occurrence of any one or more of the following events:(i) any Person other than an Excluded Person, directly or indirectly, becomes the “beneficial owner” (within the meaning of Rule 13d-3 under the Exchange Act)of securities of the Company constituting more than 40 percent of the total combined voting power of the Company’s Voting Securitiesoutstanding; provided that if such Person becomes the beneficial owner of 40 percent of the total combined voting power of the Company’s outstanding VotingSecurities as a result of a sale of such securities to such Person by the Company or a repurchase of securities by the Company, such sale or purchase by theCompany shall not result in a Change in Control; provided further, that if such Person subsequently acquires beneficial ownership of additional VotingSecurities of the Company (other than from the Company), such subsequent acquisition shall result in a Change in Control if such Person’s beneficial ownershipof the Company’s Voting Securities immediately following such acquisition exceeds 40 percent of the total combined voting power of the Company’soutstanding Voting Securities;(ii) at any time during a period of 24 consecutive months, individuals who at the beginning of such period constituted the Board and any new member of theBoard whose election or nomination for election was approved by a vote of at least a majority of the directors then still in office who either were directors at thebeginning of such period or whose election or nomination for election was so approved (the “Incumbent Board”), cease for any reason to constitute a majority ofmembers of the Board;(iii) the consummation of a reorganization, merger or consolidation of the Company or any of its Subsidiaries with any other corporation or entity, in each case,unless, immediately following such reorganization, merger or consolidation, more than 60 percent of the combined voting power and total fair market value ofthen outstanding Voting Securities of the resulting corporation from such reorganization, merger or consolidation is then beneficially owned, directly orindirectly, by all or substantially all of the individuals and entities who were the beneficial owners of the outstanding Voting Securities of the Companyimmediately prior to such reorganization, merger or consolidation in substantially the same proportion as their beneficial ownership of the Voting Securities ofthe Company immediately prior to such reorganization, merger or consolidation; or(iv) the consummation of any sale, lease, exchange or other transfer to any Person (other than a Subsidiary or affiliate of the Company) of assets of theCompany and/or any of its Subsidiaries, in one transaction or a series of related transactions within a 12-month period, having an aggregate fair market value ofmore than 50 percent of the fair market value of the Company and its Subsidiaries immediately prior to such transaction(s).Notwithstanding the foregoing, in no event shall a Change in Control be deemed to have occurred (A) as a result of the formation of a Holding Company, (B) with respect to anyParticipant, if the Participant is part of a “group” within the meaning of Section 13(d)(3) of the Exchange Act as in effect on the date hereof, which consummates the Change inControl transaction, or (C) if the transaction does not constitute a “change in ownership,” “change in effective control,” or “change in the ownership of a substantial portion of theassets” of the Company for purposes of Section 409A of the Code(e) “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules, regulations and guidance thereunder. Any reference to a provision in the Codeshall include any successor provision thereto.(f) “Committee” means the Executive Compensation Committee of the Board or such other independent committee as may be designated by the Board to perform the functions ofthe Executive Compensation Committee with respect to this Plan.(g) “Covered Employee” means an individual who is a “covered employee” or expected by the Committee to be a “covered employee,” in each case within the meaning of Section162(m) of the Code, for whom the Committee intends an Award to be “qualified performance-based compensation” under Section 162(m) of the Code.(h) “Disability” means, with respect to any Participant, such Participant’s inability upon a Termination of Service to engage in any gainful activity by reason of any medicallydeterminable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.(i) “Effective Date” means June 7, 2017.(j) “Excluded Person” means (i) the Company, (ii) any of the Company’s Subsidiaries, (iii) any Holding Company, (iv) any employee benefit plan of the Company, any of itsSubsidiaries or a Holding Company, or (v) any Person organized, appointed or established by the Company, any of its Subsidiaries or a Holding Company for or pursuant to theterms of any employee benefit plan described in clause (iv).(k) “Final Award” means, with respect to a Performance Period, the amount of an Award that will become payable to a Participant, subject to any additional terms and conditionsapplicable to the Award, as determined by the Committee under Section 7.(l) Achievement of “Full Career Status” means a Participant’s voluntary Termination of Service (i) at the age of 55 or older with ten or more years of continuous service or (ii) atthe age of 62 or older. The chief human resources officer of the Company (or such individual holding comparable roles in the event of a restructuring of positions or re-designation of titles) shall have the binding authority to determine how many years of continuous service a Participant has at any given time.(m) “Holding Company” means an entity that becomes a holding company for the Company or its businesses as part of any reorganization, merger, consolidation or othertransaction, provided that the outstanding shares of common stock of such entity and the combined voting power of the then outstanding Voting Securities of such entity are,immediately after such reorganization, merger, consolidation or other transaction, beneficially owned, directly or indirectly, by all or substantially all of the individuals and entitieswho were the beneficial owners, respectively, of the Voting Securities of the Company outstanding immediately prior to such reorganization, merger, consolidation or othertransaction in substantially the same proportions as their ownership, immediately prior to such reorganization, merger, consolidation or other transaction, of such outstanding VotingSecurities of the Company.(n) “Incumbent Board” has the meaning assigned to it in Section 2(d).(o) “Participant” means any employee selected by the Committee to participate in the Plan for a Performance Period.(p) “Performance Measures” means any one or more of the following performance measures expressed on an absolute or adjusted basis, applied to either the Company as a wholeor to a business unit, Subsidiary or business segment and measured either on an absolute basis or relative to a pre-established target, to a previous period’s results or to a designatedcomparison group, in each case as specified by the Committee: asset turnover, cash flow, contribution margin, cost objectives, cost reduction, earnings before interest and taxes(EBIT), earnings before interest, taxes, depreciation and amortization (EBITDA), earnings per share, economic value added, free cash flow, increase in customer base, inventoryturnover, liquidity, market share, net income, net income margin, operating cash flow, operating profit, operating profit margin, pre-tax income, productivity, profit margin, quality(internal or external measures), return on assets, return on net assets, return on capital, return on invested capital, return on equity, revenue, revenue growth, stockholder value, stockprice, total shareholder return, and/or warranty experience. The Committee may grant Awards subject to performance measures that are intended to constitute qualified performance-based compensation under Section 162(m) of the Code.(q) “Performance Period” means the Company’s fiscal year, or any other period as determined by the Committee.(r) “Person” means any individual or entity, including any two or more Persons deemed to be one “person” as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act. (s) “Subsidiary” means an entity of which the Company directly or indirectly holds all or a majority of the value of the outstanding equity interests of such entity or a majority ofthe voting power with respect to the Voting Securities of such entity. Whether employment by or service with a Subsidiary is included within the scope of this Plan shall bedetermined by the Committee.(t) “Target Award” means the amount that a Participant may earn under an Award if targeted performance levels are achieved (including corporate and individual performance).Target Awards may be denominated as a percentage of base salary or a dollar amount, or a combination thereof.(u) “Termination of Service” means, subject to Section 15, the cessation of a Participant’s employment relationship with the Company or a Subsidiary such that the Participant isdetermined by the Company to no longer be an employee of the Company or such Subsidiary, as applicable; provided, however, that, unless the Company determines otherwise,such cessation of the Participant’s employment with the Company or a Subsidiary, where the Participant’s employment for the Company continues at another Subsidiary, shall notbe deemed a cessation of employment or service that would constitute a Termination of Service; provided, further, that a Termination of Service shall be deemed to occur for aParticipant employed by a Subsidiary when the Subsidiary ceases to be a Subsidiary unless such Participant’s employment continues with the Company or another Subsidiary. Thechief human resources officer of the Company (or such individual holding comparable roles in theevent of a restructuring of positions or re-designation of titles) shall have the binding authority to determine whether a Participant has had a cessation of his or her employment withthe Company or a Subsidiary.(v) “Voting Securities” means securities of a Person entitling the holder thereof to vote in the election of the members of the board of directors of such Person or such governingbody of such Person performing a similar principal governing function with respect to such Person.Section 3. Eligibility. Any person who is employed by the Company or any Subsidiary may be designated by the Committee as a Participant from time to time.Section 4. Administration.(a) The Plan shall be administered by the Committee. All decisions of the Committee shall be final, conclusive and binding upon all parties, including the Company, its stockholdersand Participants and any Beneficiaries thereof. To the extent permitted by applicable law, the Committee may delegate to one or more members of the Committee or officers of theCompany the authority to administer the Plan, such as authority to establish the terms of Awards, determine Final Awards or take any other actions permitted under the Plan, withinany limits established by the Committee, except that such delegation to an officer of the Company shall not be applicable with respect to any Award for any Participant who is aCovered Employee. Subject to the immediately preceding sentence, the Committee may directly or through its delegate issue rules and regulations for administration of the Plan.(b) To the extent necessary or desirable to comply with applicable regulatory regimes, any action by the Committee shall require the approval of Committee members who are(i) independent, within the meaning of and to the extent required by applicable rulings and interpretations of the applicable stock market or exchange on which any equity securitiesissued by the Company are quoted or traded and (ii) independent outside directors pursuant to Section 162(m) of the Code.(c) Subject to applicable law, the terms of the Plan, including but not limited to Section 4(a), and such orders or resolutions not inconsistent with the terms of the Plan as may fromtime to time be adopted by the Board, the Committee or its delegate shall have full power, discretion and authority to: (i) subject to Section 3, designate eligible individuals who willbe Participants; (ii) determine the terms and conditions of any Award; (iii) determine whether, to what extent and under what circumstances amounts payable with respect to anAward under the Plan shall be deferred either automatically or at the election of the Participant or of the Committee; (iv) interpret and administer the Plan and any instrument oragreement relating to, or Award made under, the Plan; (v) establish, amend, suspend or waive such rules and regulations as it shall deem appropriate for the proper administration ofthe Plan and due compliance with applicable law or accounting or tax rules and regulations; (vi) make any other determination and take any other action that the Committee in its solediscretion deems necessary or desirable for the administration of the Plan and due compliance with applicable law or accounting or tax rules and regulations and (vii) to construe,interpret and apply the provisions of this Plan.(d) Notwithstanding any other provision in the Plan to the contrary, in any instance where a determination is to be made under the Plan at the discretion of the Company’s ChiefExecutive Officer or chief human resources officer (or such individuals holding a comparable role in the event of a restructuring of positions or re-designation of titles), theCompany’s Chief Executive Officer shall make such determination in respect of the Company’s chief human resources officer, and the Committee shall make such determination inrespect of the Company’s Chief Executive Officer (or, in each case, such individuals holding the comparable roles in the event of a restructuring of positions or re-designation oftitles). Section 5. Establishment of Award Terms. Subject to the limitations described in Section 4 and Section 8, the Committee shall establish the terms of each Award, including thePerformance Period; the positions or names of the employees who will be Participants for the Performance Period; the Target Award for each Participant or group of Participants(including any minimum or maximum amount); the applicable Performance Measures and any other additional goals, formulas or performance-based measures relating to theCompany, any business unit, Subsidiary or business segment of the Company, or to an individual Participant; targeted achievement levels (including any minimum or maximumachievement levels) relating to such Performance Measures or other goals; the formula or methodology that will be applied to determine the extent to which Awards have beenearned and any other terms that will be applicable to the Awards, including the payment date, payment conditions and any vesting schedule applicable to any Final Award.Section 6. Adjustments to Performance Measures, Goals and Formulas. The Committee may adjust, in whole or in part, any Performance Measures or any other applicable goals,formulas or performance-based measures, the targeted achievement levels (including any minimum or maximum achievement levels) relating to such Performance Measures, goals,formulas or performance-based measures, and the formula or methodology to be applied against the Performance Measures goals, formulas or performance-based measures, as theCommittee may deem appropriate and equitable during the applicable Performance Period. If the Committee determines that a change in the business, operations, corporate structureor capital structure of the Company, or the manner in which it conducts its business, or other events or circumstances render the applicable performance measures unsuitable, theCommittee may in its discretion modify such performance objectives or the related minimum acceptable level of achievement, in whole or in part; provided, however, that in the caseof an Award intended to qualify under Section 162(m) of the Code, such modifications shall be made only to the extent that they would not disqualify such Award under Section162(m) of the Code.Section 7. Determination of Final Awards.(a) As soon as practicable after the end of each Performance Period, the Committee shall determine the extent to which the targeted achievement levels of the applicable PerformanceMeasures and any other goals, formulas or performance-based measures applicable to each Award have been satisfied.(b) The Committee may, in its sole discretion, adjust (upward or downward) the Award of any Participant or group of Participants; provided, that the Committee shall not adjust theAward of any Covered Employee above the maximum payout determined in accordance with Section 8(b).(c) The Committee shall determine the Final Award for each Participant or group of Participants after applying any adjustments described in Section 7(b) and subject to thelimitations described in Section 8.(d) Notwithstanding any provisions of the Plan to the contrary, upon the occurrence of a Change in Control of the Company, the following provisions shall apply: (i)Subject to the terms of the Plan as otherwise in effect, the minimum Award payable to each Participant as determined under this Section 7 of the Plan inrespect of the fiscal year in which the Change in Control occurs shall be the greatest of: a.The Award or other annual bonus paid or payable to the Participant in respect of the fiscal year prior to the year in which the Change inControl occurs; b.The amount that would be payable to the Participant if the Company achieved the Target Award for such fiscal year; or c.The Award amount that would be payable to the Participant based on the Company’s actual performance and achievement of applicablePerformance Measures for such fiscal year through the date of the Change in Control. (ii)If a Change in Control occurs following the completion of a fiscal year, but before Awards are paid under the Plan for that fiscal year, the Participant will beeligible to receive the Award for that fiscal year based on actual performance as determined by the Company, subject to the terms of the Plan as otherwise ineffect.Section 8. Awards for Covered Employees. Notwithstanding any other provision of the Plan, the following procedures and limitations shall apply with respect to any Award to aCovered Employee.(a) On or before the earlier of (i) the date that is 90 days after commencement of the Performance Period or (ii) the expiration of 25 percent of the Performance Period, theCommittee shall establish and approve in writing one or more Performance Measures applicable to the Covered Employee’s Award, the targeted achievement levels (including anyminimum or maximum achievement levels) relating to such Performance Measures, and an objective formula or methodology that will be applied against the Performance Measuresto determine the maximum amount payable under the Award.(b) After the end of each Performance Period, the Committee shall determine and shall certify in writing the extent to which the targeted achievement levels with respect to theapplicable Performance Measures have been satisfied and shall apply the pre-established objective formula or methodology to determine the maximum amount payable under theCovered Employee’s Award.(c) For the avoidance of doubt, subject to the limitations set forth in this Section 8, the Committee may adjust the maximum payout level downward by applying any other applicablePerformance Measures or other goals, formulas or performance-based measures pursuant to Section 7(a) and by making any other adjustments pursuant to Section 7(c).(d) The Final Award for a Covered Employee shall in no instance exceed $15,000,000 for any fiscal year of the Company.Section 9. Payment of Awards.(a) Payment of the Final Awards for a Performance Period shall be made in cash after the Committee’s determination of the Final Awards (or if later, any vesting date or datesapplicable to the Final Award), but no later than December 31 of the year following the end of the applicable Performance Period (or the applicable vesting date ordates); provided that at the time of grant, subject to Section 15, the Committee may determine that an Award will be paid at a later date.(b) Notwithstanding Section 9(a), the Company may, in its sole discretion, permit or require the deferral of payment of any Final Award in accordance with the terms of anydeferred compensation plan or arrangement established or maintained by the Company or its Subsidiaries from time to time.Section 10. Conditions Precedent to Final Awards. As a condition precedent to the payment of all or any portion of the Final Award, each Participant shall: (a) refrain fromengaging in any activity which will cause damage to the Company or is in any manner inimical or in any way contrary to the best interests of the Company, as determined in the solediscretion of the Company’s Chief Executive Officer or chief human resources officer (or such individuals holding a comparable role in the event of a restructuring of positionsor re-designation of titles), (b) not for a period of 12 months following any voluntary termination of employment, directly or indirectly, knowingly induce any employee of theCompany or any Subsidiary to leave his or her employment for participation, directly or indirectly, with any existing or future employer or business venture associated with suchParticipant, and (c) furnish to the Company such information with respect to the satisfaction of the foregoing conditions precedent as the Committee may reasonably request. Inaddition, the Committee may require a Participant to enter into such agreements as the Committee considers appropriate. The failure by any Participant to satisfy any of the foregoingconditions precedent shall result in the immediate cancellation of any unpaid portion of his or her Award, and such Participant will not be entitled to receive any consideration withrespect to such cancellation.Section 11. Effect of Termination of Service on Awards. Subject to Section 9(b) and Section 10, and unless otherwise provided by the Committee at the time of the grant of theAward, or as the Committee may determine in any individual case, the following shall apply with respect to a Participant’s outstanding Awards upon such Participant’s Terminationof Service.(a) Except as set forth below, in the event of the Participant’s Termination of Service for any reason, any unpaid portion of any Award shall be forfeited.(b) In the event of a Participant’s Termination of Service due to death or Disability, in either instance before or after the end of a Performance Period but before payment of his orher Final Award, the Participant’s Final Award will be determined (if not already determined) after the end of the Performance Period in accordance with Section 7, and the FinalAward shall be paid to the Participant’s Beneficiary or Participant no later than December 31 of the year following the end of the applicable Performance Period. Any service-basedvesting conditions applicable to such Final Award shall be waived.(c) In the event of a Participant’s voluntary Termination of Service after achieving Full Career Status before or after the end of a Performance Period but before payment of his orher Final Award, the Participant’s Final Award will be determined (if not already determined) after the end of the Performance Period in accordance with Section 7; provided thatthe Final Award will be prorated based on the number of months during the applicable Performance Period prior to the Participant’s Termination of Service. The Final Award shallbe paid to the Participant after the determination of the Final Award, but no later than December 31 of the year following the end of the applicable Performance Period. Any service-based vesting conditions applicable to such Final Award shall be waived.(d) Notwithstanding the above provisions, in the event of a Participant’s Termination of Service pursuant to an approved separation agreement or program, such Participant will notbe entitled to retain any portion of an Award.Section 12. General Provisions Applicable to Awards.(a) Except pursuant to Section 12(b) or the laws of descent, no Award and no right under any Award may be voluntarily or involuntarily assigned, alienated, sold or transferred,including as between spouses or pursuant to a domestic relations order in connection with dissolution of marriage, or by operation of law.(b) A Participant may designate a Beneficiary or change a previous Beneficiary designation at such times prescribed by the Committee by using forms and following proceduresapproved or accepted by the Committee for that purpose.(c) The entire expense of offering and administering the Plan shall be borne by the Company and its Subsidiaries.(d) Any Awards granted under the Plan (including any amounts or benefits arising from such Awards) shall be subject to any clawback or recoupment policies the Company has inplace from time to time.(e) Notwithstanding any other provision of the Plan (including Section 9, Section 11 and Section 15), the Committee may determine at any time and in its sole discretion, toaccelerate or to delay any amounts payable with respect to any Award, or grant Awards subject to accelerated or delayed payment terms.(f) Subject to Section 15, if the Company or any Subsidiary has any unpaid claim against a Participant arising out of or in connection with the Participant’s employment with theCompany or any Subsidiary, prior to payment of a Final Award, such claim may be offset against any Award under this Plan (up to $5,000 per year) and at the time of payment ofany Award, such claim may be offset in total. Such claims may include, but are not limited to, unpaid taxes or corporate business credit card charges.(g) No employee, Participant or other person shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of employees,Participants or Beneficiaries under the Plan. The terms and conditions of Awards need not be the same with respect to each recipient. Any Award granted under the Plan shall bea one-time Award that does not constitute a promise of future grants.(h) The grant of an Award shall not be construed as giving a Participant the right to be retained in the employ of, or to continue to provide services to, the Company or anySubsidiary. Further, the Company or the applicable Subsidiary may at any time dismiss a Participant free from any liability or any claim under the Plan, unless otherwise expresslyprovided in the Plan or in any other agreement binding the parties.(i) Nothing contained in the Plan shall prevent the Committee or the Company from adopting other non-stockholder approved plans, policies and arrangements for grantingincentives and other compensation to employees of the Company and its Subsidiaries or adopting or continuing in effect other or additional compensation arrangements, and sucharrangements may be either generally applicable or applicable only in specific cases.(j) The Company (or any Subsidiary) shall be authorized to withhold from any payment due with respect to any Final Award the amount of applicable withholding taxes due inrespect of an Award as may be necessary in the opinion of the Company (or the Subsidiary) to satisfy all obligations for the payment of such taxes.(k) If any provision of the Plan is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction, or as to any person or Award, or would disqualify the Plan orany Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construedor deemed amended without, in the sole determination of the Committee, materially altering the intent of the Plan, such provision shall be stricken as to such jurisdiction, person orAward, and the remainder of the Plan shall remain in full force and effect.(l) This Plan is unfunded and unsecured; nothing in this Plan shall be construed to create a trust or to establish or evidence any Participant’s claim of any right to payment of anAward other than as an unsecured general creditor with respect to any payment to which he or she may be entitled.Section 13. Effective Date of the Plan. The Plan shall be effective as of the Effective Date, subject to stockholder approval.Section 14. Amendment, Modification, Suspension and Termination of the Plan; Rescissions and Corrections. Except to the extent prohibited by applicable law, the Board mayamend, alter, suspend, discontinue or terminate the Plan or any portion thereof at any time; provided, however, that no such amendment, alteration, suspension, discontinuation ortermination shall be made without stockholder approval if such approval is required by applicable law, including Section 162(m) of the Code except (a) to the extent any suchamendment, alteration, suspension, discontinuance or termination is made to cause the Plan to comply with applicable law or accounting or tax rules and regulations, (b) to imposeany clawback or recoupment provisions with respect to any Awards (including any amounts or benefits arising from such Awards) in accordance with Section 12(d) of the Plan or(c) as the Board determines in good faith to be in the best interests of the Participants affected thereby. The Committee may correct any defect, supply any omission or reconcile anyinconsistency in the Plan or any Award in the manner and to the extent it shall deem desirable to carry the Plan into effect.Section 15. Section 409A of the Code. With respect to any Award subject to Section 409A of the Code, the Plan is intended to comply with the requirements of Section 409A ofthe Code, and the provisions of the Plan shall be interpreted in a manner that satisfies the requirements of Section 409A of the Code, and the Plan shall be operated accordingly. Ifany provision of the Plan or any term or condition of any Award would otherwise frustrate or conflict with this intent, the provision, term or condition will be interpreted and, to theextent necessary, deemed amended so as to avoid this conflict. If an amount payable under an Award as a result of the Participant’s Termination of Service (other than due to death)occurring while the Participant is a “specified employee” under Section 409A of the Code constitutes a deferral of compensation subject to Section 409A of the Code, then paymentof such amount shall not occur until six months and one day after the date of the Participant’s Termination of Service, except as permitted under Section 409A of the Code. To theextent any amount that is “nonqualified deferred compensation” for purposes of Section 409A of the Code becomes payable upon a Termination of Service, such Termination ofService shall not be deemed to have occurred any earlier than a “separation from service” would occur under Section 409A of the Code, and related regulations and guidancethereunder. Notwithstanding any of the foregoing, the Company makes no representations or warranty and shall have no liability to the Participant or any other person if anyprovisions or payments, compensation or other benefits under the Plan are determined to constitute nonqualified deferred compensation subject to Section 409A of the Code but donot satisfy the provisions thereof.Section 16. Data Protection. By participating in the Plan, the Participant consents to the holding and processing of personal information provided by the Participant to theCompany or any Subsidiary, trustee or third party service provider, for all purposes relating to the operation of the Plan. These include, but are not limited to:(a) administering and maintaining Participant records;(b) providing information to the Company, Subsidiaries, trustees of any employee benefit trust, registrars, brokers or third party administrators of the Plan;(c) providing information to future purchasers or merger partners of the Company or any Subsidiary, or the business in which the Participant works; and(d) transferring information about the Participant to any country or territory that may not provide the same protection for the information as the Participant’s home country.Section 17. Governing Law. The Plan shall be governed by the laws of the State of Delaware, without application of the conflicts of law principles thereof.Exhibit 10.31Annex I to notarial deed no. G [■■■]/2017Amendment no. 3 to the Master AgreementGeneral Motors Holdings LLC300 Renaissance CenterDetroit, MI 48265, United StatesPeugeot S.A.7 rue Henri Sainte-Claire-DevilleCS 60125 - 92563 Rueil-Malmaison Cedex, FranceOctober 30, 2017Reference is made to that certain Master Agreement dated as of March 5, 2017, as amended from time to time (together with allExhibits, schedules and attachments thereto, the “Agreement”) by and between General Motors Holdings, LLC, a limited liabilitycompany organized under the laws of the State of Delaware, with its principal office at 300 Renaissance Center, Detroit, MI 48265,United States (“General Motors”) and Peugeot S.A., a French société anonyme with its registered office at 7 rue Henri Sainte-ClaireDeville, CS 60125 - 92563 Rueil-Malmaison Cedex, France, registered with the commercial register of Nanterre under identificationnumber 552 100 554 (the “Buyer” and, together with General Motors, the “Parties”) which forms part of the Reference Deeds towhich reference is hereby made. Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in theAgreement.By signing this letter (the “Amendment No. 3”), the Parties agree that:1.Notwithstanding anything to the contrary in Section 10.1(b)(iv) of the Agreement, the Second Closing shall take place onOctober 30, 2017 and, as a result, the Second Closing Date shall be the expiry of October 31, 2017 at 24:00 hours CET;2.any action (including any foreign exchange risk hedging transaction or the incurrence of any indebtedness by GMAC BanqueS.A. used to pay for any of the Fincos Shares) or omission by GMAC Banque S.A., or by any Finco at the direction or requestof the Buyer or the Financial Partner and/or any of their respective Affiliates (other than any such action taken with the priorwritten consent of General Motors) from (and including) completion of the capital increases reserved for BNP Paribas PersonalFinance SA, on the one hand, and Banque PSA Finance SA, on the other hand (the “Capital Increases”), until the expiry ofOctober 31, 2017, 24:00 hours CET, shall not be taken into account to calculate the Fincos Book Value and shall have noimpact on the Fincos Purchase Price. For the avoidance of doubt, the Capital Increases shall not be taken into account tocalculate the Fincos Book Value and shall have no impact on the Fincos Purchase Price;3.the Pension Plans listed on Exhibit A to this Amendment No. 3 are added to the corresponding section of Exhibit E to theAgreement;4.the Parties acknowledge and agree that no Fincos were transferred at the First Closing, and therefore (i) there shall be no ThirdEstimated Pension Closing Payment Amount and (ii) the Final PensionAmount in respect of the Third Pension Closing Payment Amount shall be zero. All Estimated Pension Closing PaymentAmounts relating to the Fincos (including all German Fincos) shall be calculated in accordance with Exhibit E and included inthe Fourth Estimated Pension Closing Payment Amount, which shall be settled in full (i.e. including the excess of the FourthEstimated Pension Closing Payment Amount over the Buyer Restricted Fourth Pension Amount) by wire transfer ofimmediately available funds on the Second Closing by General Motors or the relevant Fincos as contemplated in Section 10.3of the Agreement, as amended by this Amendment No 3. All Pension Closing Payment Amounts (as calculated in accordancewith Exhibit E) relating to the Fincos (including the German Fincos) shall be part of the Fourth Pension Closing PaymentAmount;5.in accordance with Section 6.9(b)(i) of the Agreement, Exhibit B to this Amendment No. 3 sets forth a list, by country and byPension Plan, of the jointly determined Agreed Pension Vehicles for the Finco Pension Plans and the relevant portion of theBuyer Restricted Fourth Pension Closing Amount allocated to the respective Finco Pension Plan for which such AgreedPension Vehicle is established;6.in accordance with Section 6.9(b)(i) of the Agreement, the Agreed Pension Vehicles List shall include the Agreed PensionVehicles set forth in Exhibit 6.9(b)(i) to the Agreement and Exhibit B to this Amendment No. 3; it being understood that, forthe avoidance of doubt, Sections 6.9(b)(ii) - (x) and Section 6.9(d) of the Agreement apply accordingly for any Agreed PensionVehicles for the Finco Pension Plans;7.to the extent that Agreed Pension Vehicles listed in Exhibit B to this Amendment No. 3 have not been established by theSecond Closing Date, as contemplated by the first sentence of Section 6.9(b) of the Agreement, General Motors shall place therelevant portion of the Buyer Restricted Fourth Pension Closing Amount into the escrow account established by that certainescrow deed by and among Deutsche Bank AG, as escrow agent, General Motors, Banque PSA Finance S.A. and BNPParibas Personal Finance (the “Finco Pension Escrow Account Agreement”, a copy of which forms part of the AmendmentNo. 3 Reference Deed to which reference is hereby made)) for which, for the avoidance of doubt, Sections 6.9(b)(i) - (x) andSection 6.9(d) of the Agreement shall apply mutatis mutandis and with each reference therein to the Pension Escrow AccountAgreement read as also including the Finco Pension Escrow Account Agreement. For the avoidance of doubt, Sections 10.3(b)and (c) of the Agreement are, with respect to the relevant portions of the Buyer Restricted Fourth Pension Closing Amount,subject to the provisions of Section 6.9(f) of the Agreement. For the avoidance of doubt, the amount of cash placed in theescrow account established by the Finco Pension Escrow Account Agreement by or on behalf of General Motors (includingany cash amounts released from the escrow account to the Fincos in accordance with the Finco Pension Escrow AccountAgreement) shall not be taken into account to calculate the Fincos Book Value and shall have no impact on the FincosPurchase Price;8.for the avoidance of doubt, if, upon termination of the escrow account established by the Finco Pension Escrow AccountAgreement, residual amounts are transferred to GMAC Banque S.A., such amounts shall be used exclusively for the purposedescribed in Section 6.9(d) of the Agreement;9.notwithstanding Section 10.3(b)(ii) of the Agreement (i) on the Second Closing, General Motors shall pay or cause to be paidthe excess of the Fourth Estimated Pension Closing Payment Amount over the Buyer Restricted Fourth Pension ClosingPayment Amount (calculated based on the Fourth Estimated Pension Closing Payment Amount), as applicable, to GMACBanque S.A. by wire transfer of immediately available funds and (ii) such excess payment by General Motors shall be treatedas a reduction of the Fincos Purchase Price; provided, however, that this sentence shall not reduce any amounts to be paid toGeneral Motors or its Affiliates at the Second Closing (including as a result ofany adjustment to the Fincos Purchase Price following the Second Closing pursuant to Section 3.3 of the Agreement). Theexcess of any Final Pension Amount in respect of the Fourth Pension Closing Payment Amount over the Fourth EstimatedPension Closing Payment Amount shall be paid by General Motors in accordance with Section 3.3(b) and Part 4 of Exhibit Eof the Agreement, provided that (i) with respect to any payments to Buyer to be made by General Motors in accordance withPart 4 of Exhibit E, such payments shall be made to GMAC Banque S.A., and (ii) such payments to GMAC Banque S.A. shallbe treated as a reduction of the Fincos Purchase Price; provided, however, that this sentence shall not reduce any amounts to bepaid to General Motors or its Affiliates at the Second Closing (including as a result of any adjustment to the Fincos PurchasePrice following the Second Closing pursuant to Section 3.3 of the Agreement);10.the Parties hereby agree and acknowledge that upon receipt of any funds by GMAC Banque S.A. for an Agreed PensionVehicle to be funded by another Finco from the escrow account established by the Finco Pension Escrow Account Agreement,Buyer shall cause such funds to be contributed to such other Finco that has established the relevant Agreed Pension Vehicle,and Buyer shall procure that such other Finco shall, upon receipt, promptly deposit such funds into the relevant Agreed PensionVehicle. Buyer hereby agrees that if a Finco receives funds from the Escrow Agent directly, Buyer shall cause such Finco todeposit such funds into the relevant Agreed Pension Vehicle;11.the Parties hereby agree and acknowledge that General Motors shall, pursuant to Section 10.3(c) of the Agreement, before theSecond Closing Date, cause the payment of the Buyer Restricted Fourth Pension Closing Amount in respect of the GermanAPVs to be made by debt incurred by the relevant Fincos (namely Opel Bank GmbH, GMF Germany Holdings GmbH, OpelLeasing GmbH, GM Financial GmbH and General Motors Financial International BV), the proceeds of which shall betransferred to the relevant German APV; provided, that the difference between the absolute amounts of (i) the Fincos PurchasePrice and (ii) the portion or the full amount (as applicable) of the Fourth Pension Closing Payment Amount to be paid directlyby General Motors, shall be the same as compared to the difference which would have resulted from the direct funding byGeneral Motors of the German APVs on behalf of the Fincos pursuant to Section 10.3(c);12.for the avoidance of doubt, any deferred tax asset relating to the pension liabilities related to the Fincos allocated to the (i)Agreed Pension Vehicles or (ii) Pension Funds, shall be excluded from the assets of such Agreed Pension Vehicles or PensionFunds, as applicable, and shall be included for purposes of calculating the Fincos Book Value. In the event that (i) any pre-Second Closing payments that relate to the pension liabilities related to the Fincos and that have been paid to the AgreedPension Vehicles or the Pension Funds, or (ii) any payments related to the Fourth Pension Closing Payment Amount paid tothe Agreed Pension Vehicles or Pension Funds of the Fincos are lower than the amount of pension liabilities in the ClosingAccounts (before such funding of the Agreed Pension Vehicles or Pension Funds and the off-setting against the pensionliabilities thereby), and either (i) or (ii) triggers a loss of, or a reduction in the amount of, any deferred tax asset included for thepurposes of calculating the Fincos Book Value, then the Fincos Purchase Price shall be reduced to the extent of such loss orreduction;13.For the avoidance of doubt, claims for cash payments to be made by AOAG to the relevant Finco or by the relevant Finco toAOAG pursuant to the profit and loss profit agreement (in accordance with Section 8.3(b)(i) of the Agreement) shall not betaken into account in the Fincos Book Value;14.the Reorganization Transaction described in Exhibit 6.4(a)(ii)-Item 13 to the Agreement is hereby amended as follows:TransactionDescription13General Motors will:(a) cause GMAC Continental Corporation to sell its interests in GMAC Financial AB to GMF Europe HoldcoLimited;(b) cause General Motors Financial Company, Inc. to sell one share of GMAC Continental Corporation toGMF Europe Holdco Limited; and(c) convert GMAC Continental Corporation from a Delaware entity into a Luxembourg entity (with continuityof personality) and then convert that Luxembourg entity into a Belgian entity (with continuity ofpersonality, and changes its name to Opel Finance BVBA).◦References to “GMCC” throughout the Agreement are changed, as the case may be, in such a way that they shall referto Opel Finance BVBA following its conversion into a Belgian entity.◦Item 7 of the Direct Share Transfers table in Exhibit 4.4(a) to the Agreement is amended to read as follows:#Target GroupCompanyJurisdictionSellerNumber of Shares/PartnershipInterest Held by Respective SellerPercentage Ownership Held by RespectiveSellerEntityType7.GMAC Banque S.A.FranceGM FinancialCompany, Inc.212,893 (increased to 212,978 as of theSecond Closing to reflect purchases fromminority shareholders)99.09% (increased to 99.13% as of the SecondClosing to reflect purchases from minorityshareholders)Finco◦Item 12 of the Direct Share Transfers table in Exhibit 4.4(a) to the Agreement is amended to read as follows:#Target Group CompanyJurisdictionSellerNumber of Shares/PartnershipInterest Held by Respective SellerPercentageOwnership Held byRespective SellerEntityType12.Opel Finance BVBA14 BelgiumGM Financial Company, Inc.99999.9%Finco14 This entity is currently known as GMAC Continental Corporation (a Delaware corporation). As part of a Reorganization Transaction, it will migrate from Delaware toLuxembourg and then migrate from Luxembourg to Belgium at which time it will be renamed Opel Finance BVBA.◦New line item no. 50 is added to the Indirect Share Transfers table in Exhibit 4.4(a) to the Agreement:#Target GroupCompanyJurisdictionShareholder/PartnerNumber of Shares/Partnership InterestHeld by Respective Shareholder/PartnerPercentage OwnedEntityType50.Opel Finance BVBABelgiumGMF Europe Holdco Limited10.1%Finco◦In Exhibit 4.4(d) “Branches of Target Group Companies” to the Agreement, the references in line item no. 2 and lineitem no. 4 to “GMAC Continental Corporation” are changed in such a way that they refer to Opel Finance BVBA.Footnote 19 is changed to read: “Pursuant to item 13 of Exhibit 6.4(a)(ii) and as part of the ReorganizationTransactions related to GMAC Continental Corporation (name changing to Opel Finance BVBA), General Motorswill legally close the Greek branch (it being understood that any liability or claim relating to such Greek branch will beassumed by Opel Finance BVBA).”◦Item 9 of the Direct Share Transfers table in Exhibit 4.4(a) to the Agreement is amended to read as follows:Direct Share Transfers#Target Group CompanyJurisdictionSellerNumber ofShares/Partnership InterestHeld by Respective SellerPercentageOwnershipHeld byRespectiveSellerEntityType9.GM Financial Real EstateGmbH & Co. KGGermanyGM Financial Company, Inc.Limited PartnerCapital contribution(Gesellschafterkonto) of EUR6006%Finco◦Item 34 of the Indirect Share Transfers table in Exhibit 4.4(a) to the Agreement is amended to read as follows:Indirect Share Transfers#Target Group CompanyJurisdictionShareholder/PartnerNumber ofShares/Partnership InterestHeld by RespectiveShareholder/PartnerPercentageOwnedEntityType34.GM Financial Real EstateGmbH & Co. KGGermanyOpel Leasing GmbH(General Partner)Capital contribution(Gesellschafterkonto) of EUR9,40094%Finco15.A new line item no. 16 is added to the Reorganization Transactions in Exhibit 6.4(a)(ii) to the Agreement:TransactionDescription16GMAC Continental Corporation will sell its 0.0002% interest in GMAC Servicios SAS to GM Financial Colombia Holdings LLC (aSellers’ Retained Group Company).This Amendment No. 3 is an integral part of the Agreement. Except as amended hereby, the Agreement shall continue in full forceand effect and shall otherwise be unaffected by this Amendment No. 3. The provisions of Sections 17.3, 17.4, 17.14 and 17.16 ofthe Agreement are incorporated herein by reference and shall apply to the terms of this Amendment No. 3 and the Parties mutatismutandis.Exhibit 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, 2017 2016 2015 2014 2013Income from continuing operations before income taxes and equity income$9,731 $9,726 $6,178 $3,477 $6,654Fixed charges excluding capitalized interest3,210 2,617 1,982 1,662 1,015Amortization of capitalized interest37 29 24 21 17Dividends from nonconsolidated affiliates2,000 2,132 2,127 1,827 661Earnings available for fixed charges$14,978 $14,504 $10,311 $6,987 $8,347 Interest and related charges on debt(a)$3,121 $2,533 $1,883 $1,550 $896Portion of rentals deemed to be interest90 84 99 112 120Interest capitalized in period180 126 93 68 66Preference security dividend requirements(b)576 - - - -Total fixed charges3,967 2,743 2,075 1,730 1,082Preferred stock dividends grossed up to a pre-tax basis 1,281 2,528Combined fixed charges and preferred stock dividends$3,967 $2,743 $2,075 $3,011 $3,610 Ratio of earnings to fixed charges3.78 5.29 4.97 4.04 7.72Ratio of earnings to combined fixed charges and preferred stock dividends 2.32 2.31__________(a) Excludes interest associated with uncertain tax positions, which is recorded within income tax expense.(b) The pre-tax earnings required to pay preference security dividend requirements is calculated using the 2017 effective tax rate of 97.2%.Exhibit 21GENERAL MOTORS COMPANYSUBSIDIARIES AND JOINT VENTURES OF THE REGISTRANTAS OF DECEMBER 31, 2017Company NameState or Sovereign Power ofIncorporation2140879 Ontario Inc.CanadaACAR Leasing Ltd.DelawareACF Investment Corp.DelawareAdam Opel GmbHGermanyAFS SenSub Corp.NevadaAmeriCredit Consumer Loan Company, Inc.NevadaAmeriCredit Financial Services, Inc.DelawareAmeriCredit Funding Corp. XIDelawareAmeriCredit Syndicated Warehouse TrustDelawareAnnunciata CorporationDelawareAPGO TrustDelawareArgonaut Holdings LLCDelawareBanco GMAC S.A.BrazilBOCO (Proprietary) LimitedSouth AfricaBoco TrustSouth AfricaCadillac Europe GmbHSwitzerlandCarve-Out Ownership Cooperative LLCDelawareChevrolet Sales (Thailand) LimitedThailandChevrolet Sales India Private Ltd.IndiaChevrolet Sociedad Anonima de Ahorro para Fines DeterminadosArgentinaCHEVYPLAN S.A. Sociedad Administradora de Planes de Autofinanciamiento ComercialColombiaCHEVYPLAN, CAVenezuelaControladora 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.ChinaGeneral Motors - Colmotores S.A.ColombiaGeneral Motors (China) Investment Company LimitedChinaGeneral Motors (Thailand) LimitedThailandGeneral Motors Advisory Services LLCUzbekistanGeneral 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 Auto LLCRussian FederationGeneral Motors Automobiles Philippines, Inc.PhilippinesGeneral Motors Automotive Holdings, S.L.SpainGeneral Motors Belgique Automobile NVBelgiumGeneral Motors Chile Industria Automotriz LimitadaChileGENERAL MOTORS COMPANYSUBSIDIARIES AND JOINT VENTURES OF THE REGISTRANTAS OF DECEMBER 31, 2017Company NameState or Sovereign Power ofIncorporationGeneral 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 Egypt, S.A.E.EgyptGeneral Motors Europe LimitedEngland and WalesGeneral Motors Financial Chile LimitadaChileGeneral Motors Financial Chile S.A.ChileGeneral Motors Financial Company, Inc.TexasGeneral Motors Financial of Canada, Ltd.CanadaGeneral Motors Global Service Operations, Inc.DelawareGeneral Motors Holden Australia Ltd.AustraliaGeneral Motors Holden Australia NSC Ltd.AustraliaGeneral Motors Holdings LLCDelawareGeneral Motors India Private LimitedIndiaGeneral Motors International Holdings LLCDelawareGeneral Motors International Operations Pte. Ltd.SingaporeGeneral Motors International Services Company SASColombiaGeneral Motors International Services LLCDelawareGeneral Motors Investment Management CorporationDelawareGeneral Motors Investment Participacoes Ltda.BrazilGeneral Motors Investments Pty. Ltd.AustraliaGeneral Motors Israel Ltd.IsraelGeneral Motors IT Services (Ireland) LimitedIrelandGeneral Motors Japan LimitedJapanGeneral Motors LimitedEnglandGeneral Motors LLCDelawareGeneral 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 Powertrain (Thailand) LimitedThailandGeneral Motors Research CorporationDelawareGeneral Motors South Africa (Pty) LimitedSouth AfricaGeneral Motors Taiwan Ltd.TaiwanGeneral Motors Technical Centre India Private LimitedIndiaGeneral Motors Treasury Center, LLCDelawareGeneral Motors Uruguay S.A.UruguayGENERAL MOTORS COMPANYSUBSIDIARIES AND JOINT VENTURES OF THE REGISTRANTAS OF DECEMBER 31, 2017Company NameState or Sovereign Power ofIncorporationGeneral Motors Venezolana, C.A.VenezuelaGeneral Motors Ventures LLCDelawareGeneral Motors Vietnam Company Ltd.VietnamGeneral 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 Auslandsprojekte GmbHGermanyGM Canada Holdings LLCDelawareGM Canada Limited PartnershipCanadaGM CME Holdings C.V.NetherlandsGM Components Holdings, LLCDelawareGM Cruise LLCDelawareGM Defense LLCDelawareGM Eurometals, Inc.DelawareGM Europe Treasury Company ABSwedenGM Finance Co. Holdings LLCDelawareGM 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.CPeruGM Financial Holdings LLCDelawareGM Financial Mexico Holdings LLCDelawareGM Global Business Services Philippines, Inc.PhilippinesGM Global Technology Operations LLCDelawareGM Global Tooling Company LLCDelawareGM Holden Ltd.AustraliaGM Holdings U.K. No.1 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, LLCDelawareGENERAL MOTORS COMPANYSUBSIDIARIES AND JOINT VENTURES OF THE REGISTRANTAS OF DECEMBER 31, 2017Company NameState or Sovereign Power ofIncorporationGMAC Administradora de Consorcios Ltda.BrazilGMAC de Venezuela, C.A.VenezuelaGMAC Prestadora de Servicios de Mao de Obra Ltda.BrazilGMAC Servicios S.A.S.ColombiaGMACI Corretora de Seguros LtdaBrazilGMAM Real Estate I, LLCDelawareGMCH&SP Private Equity II L.P.CanadaGM-DI Leasing LLCDelawareGMF Australia Pty LtdAustraliaGMF Europe LLPEngland and WalesGMF Floorplan Owner Revolving TrustDelawareGMF Funding Corp.DelawareGMF Global Assignment LLCDelawareGMF International LLCDelawareGMF Leasing LLCDelawareGMF Leasing Warehousing TrustDelawareGMF Wholesale Receivables LLCDelawareGMGP Holdings LLCDelawareGrand Pointe Holdings, Inc.MichiganGrand Pointe Park Condominium AssociationMichiganHolden New Zealand LimitedNew ZealandIBC Pension Trustees LimitedEnglandLease Ownership Cooperative LLCDelawareLidlington Engineering Company, Ltd.DelawareLimited Liability Company "General Motors CIS"Russian FederationMaven Drive LLCDelawareMaven Leasing Ltd.DelawareMillbrook Pension Management LimitedEnglandMonetization of Carve-Out, LLCDelawareMotors Holding LLCDelawareMulti-Use Lease Entity TrustDelawareNorth American New Cars LLCDelawareOmnibus BB Transportes, S. A.EcuadorOnStar Connected Services SrlRomaniaOnStar de Mexico S. de R.L. de C.V.MexicoOnStar Europe Ltd.England and WalesOnStar Global Services CorporationDelawareOnStar, LLCDelawareP.T. G M AutoWorld IndonesiaIndonesiaP.T. General Motors IndonesiaIndonesiaPan Asia Technical Automotive Center Company, Ltd.ChinaPIMS Co.DelawareGENERAL MOTORS COMPANYSUBSIDIARIES AND JOINT VENTURES OF THE REGISTRANTAS OF DECEMBER 31, 2017Company NameState or Sovereign Power ofIncorporationPrivate Auto Lease TrustDelawarePT. 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 (Shenyang) Norsom Motors Co., Ltd.ChinaSAIC GM Dong Yue Motors Company LimitedChinaSAIC GM Dong Yue Powertrain Company LimitedChinaSAIC GM Wuling Automobile Company LimitedChinaSAIC Motor Insurance Sales Company LimitedChinaSAIC-GMAC Automotive Finance Company LimitedChinaServicios GMAC S.A. de C.V.MexicoShanghai OnStar Telematics Co. Ltd.ChinaStrobe, Inc.Delaware andCaliforniaVehicle Asset Universal Leasing TrustDelawareWRE, Inc.MichiganZona Franca Industrial Colmotores SASColombiaTotal - 188Pursuant 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, 2017. Additionally 75 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, 2017.Exhibit 23.1CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMWe consent to the incorporation by reference in Registration Statement No. 333-218793, 333-211344, and 333-196812 on Form S-8, and RegistrationStatement No. 333-215924 on Form S-3 of our reports dated February 6, 2018, relating to the consolidated financial statements of General Motors Companyand subsidiaries (the Company) and the effectiveness of the Company's internal control over financial reporting, appearing in this Annual Report on Form10-K of General Motors Company for the year ended December 31, 2017./s/ DELOITTE & TOUCHE LLPDetroit, MichiganFebruary 6, 2018Exhibit 24POWER OF ATTORNEYThe undersigned, a director of General Motors Company (GM), hereby constitutes and appoints Thomas S. Timko, Michael T. Kahler, and Rick E. 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, place and stead,in any and all capacities (including my capacity as a director of GM), to sign:SEC Report(s) on Covering Annual Report on Form 10-K Year Ended December 31, 2017and 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 12, 2017 DatePOWER OF ATTORNEYThe undersigned, a director of General Motors Company (GM), hereby constitutes and appoints Thomas S. Timko, Michael T. Kahler, and Rick E. 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, place and stead,in any and all capacities (including my capacity as a director of GM), to sign.SEC Report(s) on Covering Annual Report on Form 10-K Year Ended December 31, 2017and 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 13, 2017 DatePOWER OF ATTORNEYThe undersigned, a director of General Motors Company (GM), hereby constitutes and appoints Thomas S. Timko, Michael T. Kahler, and Rick E. 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, place and stead,in any and all capacities (including my capacity as a director of GM), to sign:SEC Report(s) on Covering Annual Report on Form 10-K Year Ended December 31, 2017and 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 20, 2017 DatePOWER OF ATTORNEYThe undersigned, a director of General Motors Company (GM), hereby constitutes and appoints Thomas S. Timko, Michael T. Kahler, and Rick E. 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, place and stead,in any and all capacities (including my capacity as a director of GM), to sign:SEC Report(s) on Covering Annual Report on Form 10-K Year Ended December 31, 2017and 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 13, 2017 DatePOWER OF ATTORNEYThe undersigned, a director of General Motors Company (GM), hereby constitutes and appoints Thomas S. Timko, Michael T. Kahler, and Rick E. 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, place and stead,in any and all capacities (including my capacity as a director of GM), to sign:SEC Report(s) on Covering Annual Report on Form 10-K Year Ended December 31, 2017and 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 13, 2017 DatePOWER OF ATTORNEYThe undersigned, a director of General Motors Company (GM), hereby constitutes and appoints Thomas S. Timko, Michael T. Kahler, and Rick E. 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, place and stead,in any and all capacities (including my capacity as a director of GM), to sign:SEC Report(s) on Covering Annual Report on Form 10-K Year Ended December 31, 2017and 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, 2017 DatePOWER OF ATTORNEYThe undersigned, a director of General Motors Company (GM), hereby constitutes and appoints Thomas S. Timko, Michael T. Kahler, and Rick E. 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, place and stead,in any and all capacities (including my capacity as a director of GM), to sign:SEC Report(s) on Covering Annual Report on Form 10-K Year Ended December 31, 2017and 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 13, 2017 DatePOWER OF ATTORNEYThe undersigned, a director of General Motors Company (GM), hereby constitutes and appoints Thomas S. Timko, Michael T. Kahler, and Rick E. 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, place and stead,in any and all capacities (including my capacity as a director of GM), to sign:SEC Report(s) on Covering Annual Report on Form 10-K Year Ended December 31, 2017and 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 13, 2017 DatePOWER OF ATTORNEYThe undersigned, a director of General Motors Company (GM), hereby constitutes and appoints Thomas S. Timko, Michael T. Kahler, and Rick E. 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, place and stead,in any and all capacities (including my capacity as a director of GM), to sign:SEC Report(s) on Covering Annual Report on Form 10-K Year Ended December 31, 2017and 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, 2017 DateGENERAL 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 and Chief Executive Officer Date:February 6, 2018 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 6, 2018 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, 2017 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 and Chief Executive Officer /s/ CHARLES K. STEVENS III Charles K. Stevens IIIExecutive Vice President and Chief Financial Officer Date:February 6, 2018 

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