UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549-1004
FORM 11-K
X ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE
--- ACT OF 1934
For the fiscal year ended December 31, 2003
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OR
TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE
--- ACT OF 1934
For the transition period from
to
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Commission file number 2-88284
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THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
---------------------------------------------
(Full title of the plan)
General Motors Corporation
300 Renaissance Center, Detroit, Michigan 48265-3000
----------------------------------------------------
(Name of issuer of the securities held pursuant to
the plan and the address of its principal
executive offices)
Registrant's telephone number, including area code (313)-556-5000
Notices and communications from the Securities and Exchange Commission
relative to this report should be forwarded to:
Peter R. Bible
Chief Accounting Officer
General Motors Corporation
300 Renaissance Center
Detroit, Michigan 48265-3000
- 1 -
FINANCIAL STATEMENTS AND EXHIBIT
--------------------------------
(a) FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE Page No.
---------------------------------------------------------- --------
The General Motors Personal Savings Plan for
Hourly-Rate Employees in the United States:
Report of Independent Registered Public Accounting
Firm. . . . . . . . . . . . . . . . . . . . . . . . . . 3
Statements of Assets Available for Benefits, as of
December 31, 2003 and 2002 . . . . . . . . . . . . . . 4
Statements of Changes in Assets Available for
Benefits for the Years Ended December 31, 2003 and 2002 5
Notes to Financial Statements . . . . . . . . . . . . . . 6
Supplemental Schedule, Form 5500 Schedule H, Part IV,
Line 4i - Schedule of Assets (Held at End of Year)
as of December 31, 2003. . . . . . . . . . . . . . . . . 14
All other schedules required by Section 2520.103-10 of the Department of Labor's
Rules and Regulations for Reporting and Disclosure under the Employee Retirement
Income Security Act of 1974 have been omitted because they are not applicable.
(b) EXHIBIT
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Exhibit 23 - Independent Registered Public Accounting
Firm Consent . . . . . . . . . . . . . . . . . . . . . . 15
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this annual report to be signed on its behalf by
the undersigned hereunto duly authorized.
The General Motors Personal
Savings Plan for Hourly-Rate
Employees in the United States
-----------------------------
(Name of Plan)
Date June 25, 2004 By:
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/s/G. Richard Wagoner, Jr.
-------------------------
(G. Richard Wagoner, Jr., Chairman
of the Board of Directors)
-2-
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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To the Plan Administrator of The General Motors Personal Savings Plan for
Hourly-Rate Employees in the United States:
We have audited the accompanying statements of assets available for benefits of
The General Motors Personal Savings Plan for Hourly-Rate Employees in the United
States (the "Plan") as of December 31, 2003 and 2002, and the related statements
of changes in assets available for benefits for the years then ended. These
financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the assets available for benefits of the Plan as of December 31, 2003
and 2002, and the changes in assets available for benefits for the years then
ended in conformity with accounting principles generally accepted in the United
States of America.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule listed in the
Table of Contents is presented for the purpose of additional analysis and is not
a required part of the basic financial statements, but is supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. This schedule is the responsibility of the Plan's management. Such
schedule has been subjected to the auditing procedures applied in our audit of
the basic 2003 financial statements and, in our opinion, is fairly stated in all
material respects when considered in relation to the basic financial statements
taken as a whole.
/s/DELOITTE & TOUCHE LLP
------------------------
(Deloitte & Touche LLP)
Detroit, Michigan
June 25, 2004
- 3 -
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
STATEMENTS OF ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 2003 AND 2002
2003 2002
------------ ------------
(Dollars in Thousands)
ASSETS:
Investment in General Motors Savings
Plans Master Trust (Note D):
Investments - at estimated fair value $7,721,495 $6,256,679
Loans 393,260 405,991
--------- ---------
Total assets $8,114,755 6,662,670
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ASSETS AVAILABLE FOR
BENEFITS $8,114,755 $6,662,670
========= =========
Reference should be made to the Notes to Financial Statements.
- 4 -
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
STATEMENTS OF CHANGES IN ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002
2003 2002
------------ -------------
(Dollars in Thousands)
ADDITIONS:
Net investment gain from General
Motors Savings Plans Master
Trust (Note D) 1,355,046
Employee contributions 461,606 434,857
--------- ---------
Total additions 1,816,652 434,857
DEDUCTIONS:
Net investment loss from
General Motors Savings Plans Master Trust (687,414)
(Note D)
Distributions to participants (363,752) (377,960)
Net Transfers (Note E) (815) (10,813)
--------- ---------
Total deductions (364,567) (1,076,187)
NET INCREASE(DECREASE) 1,452,085 (641,330)
ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 6,662,670 7,304,000
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End of year 8,114,755 6,662,670
========= =========
Reference should be made to the Notes to Financial Statements.
- 5 -
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2003 AND 2002
A. THE PLAN
GENERAL - General Motors Corporation (the "Corporation" or "GM") and certain
unions have established The General Motors Personal Savings Plan for
Hourly-Rate Employees in the United States (the "Plan"), a defined
contribution plan. Generally, eligible hourly-rate full-time and part-time
employees may participate and accumulate savings under the Plan on the first
day of the first pay period following the attainment of seniority, as defined
in the Plan. The Investment Funds Committee of the Corporation's Board of
Directors acts as the Plan fiduciary and, along with various officers,
employees, and committees, with authority delegated from the Plan fiduciary,
controls and manages the operation and administration of the Plan subject to
the provisions of the Employee Retirement Income Security Act of 1974, as
amended (ERISA). The following brief description of the Plan is provided for
general informational purposes only. Participants should refer to the Plan
document and prospectus for a complete description of the Plan's provisions.
PARTICIPANT CONTRIBUTIONS - An eligible participant employed by the
Corporation (an "Eligible Employee") may elect to make pre-tax contributions,
in 1% increments, up to 40% for 2003 and 2002, of eligible weekly earnings up
to the maximum Internal Revenue Service (the "IRS") 401(k) limit of $12,000
and $11,000 in 2003 and 2002 respectively. In addition, an Eligible Employee
may elect to contribute, in 1% increments, up to 100% of his or her profit
sharing distribution from the General Motors Profit Sharing Plan for
Hourly-Rate Employees in the United States to his or her account in the Plan.
Profit sharing amounts contributed to the Plan on behalf of an Eligible
Employee are invested in the same investment option(s) as selected by the
participant for weekly contributions to the Plan. Employee contributions vest
immediately. An Eligible Employee may also contribute to the Plan on an
after-tax basis, or a combination of a pre-tax and an after-tax basis up to
40% 2003 and 2002, of weekly earnings as defined in the Plan.
An Eligible Employee age 50 or older or who will attain age 50 by the end of
the calendar year, is eligible to make catch-up contributions to their
account. A catch-up contribution is a separate contribution election, that is
"pre-tax" only, and is made only after the participant's contributions have
been limited by the annual 401 (k) contribution limit.
EMPLOYER CONTRIBUTIONS - For certain employees hired on or after January 1,
1994, the Corporation contributes an amount equal to a certain percent (based
on local units competitive hire agreements) of eligible weekly earnings to
such participants' accounts in the form of the Corporation's $1-2/3 par value
common stock. Such participants must be in the Plan for at least three years
to be vested in assets acquired with employer contributions, at which time
such assets may be transferred by the participant to other available
investment options. Forfeitures, if any, are used to offset future employer
contributions. There were no employer contributions made in 2003 and 2002.
FUND EXCHANGES - Generally, each participant is entitled on any business day
on which the New York Stock Exchange is open ("Business Day") to exchange a
specified portion or all of his or her interest in any of the investment
options to other options offered under the Plan.
- 6 -
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
NOTES TO FINANCIAL STATEMENTS - Continued
PARTICIPANT WITHDRAWALS - A participant may withdraw tax deferred savings in
their account at any time after attaining age 59-1/2. Prior to age 59-1/2,
employee after-tax savings may be withdrawn at any time, however, tax
deferred savings may only be withdrawn because of termination of employment,
retirement, death, total and permanent disability, or financial hardship.
Prior to receiving a withdrawal for financial hardship, a participant
previously must have taken all available asset distributions, withdrawals,
and loans under all applicable plans maintained by the Corporation. The
amount that may be withdrawn for a financial hardship is limited as defined
in the Plan. The funds that represent a hardship distribution must conform to
conditions required by the IRS. A participant who receives a hardship
distribution shall have his or her contributions to the Plan suspended for 12
months following the distribution.
Certain costs of Plan administration are paid by the Corporation.
INVESTMENT OPTIONS - The participants must direct, in 10% increments, how
their contributions are to be invested. A description of each investment
option offered under the Plan follows:
General Motors Common Stock Fund $1-2/3 Par Value and Class H, $0.10 Par
Value - Under this investment option, contributions are invested by the
Trustee primarily in the respective General Motors common stock. Each unit
represents a proportionate interest in all of the assets of the respective GM
Common Stock Fund. The number of units credited to each participant's account
within an applicable plan will be determined by the amount of the
participant's contributions and the purchase price of a unit in the
respective GM Common Stock Fund. The value of each participant's account is
determined each Business Day by the number of units to the participant's
credit, multiplied by the current unit value. The return on a participant's
investment is based on the value of units, which, in turn, is determined by
the market price of the respective GM common stock, the amount of any
dividends paid thereon, and by interest earned on short-term investments held
by each fund. As of December 23, 2003, GM Class H stock was replaced with
DIRECTV Group Common Stock and News Corporation Preferred ADSs at the ratio
of 84% and 16% respectively.
Each participant directs the Trustee how to vote common stock shares
allocated to his or her account. The Trustee will not exercise voting rights
with respect to those shares for which direction has not been received by the
required deadline.
Promark Funds - There are Promark funds as investment options for
participants in the Plan. These funds have a variety of investment
strategies. Participants should refer to the Plan's prospectus for further
information regarding the investment strategy of each investment fund option
and the risks associated with each investment fund option.
Assets invested in the Promark funds are expressed in terms of units. The
number of units credited to a participant's account within an applicable plan
will be determined by the amount of participant's contributions and the
current value of each unit in the respective Promark fund. The value of each
participant's account is determined each Business Day by the number of units
to the participant's credit, multiplied by the current unit value.
Mutual Funds - This investment option is comprised of many different mutual
funds managed by Fidelity Investments, Neuberger Berman Management Inc.,
Domini Social Investments LLC and SSgA Funds Management, Inc. Each mutual
fund has a different objective and investment strategy. To pursue their
objectives, the mutual fund managers invest in a wide variety of investments.
Complete information about each mutual fund's objectives and investments is
contained in that fund's prospectus.
- 7 -
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
NOTES TO FINANCIAL STATEMENTS - Continued
Other Investments:
EDS Common Stock Fund - Effective June 7, 1996, the net assets of Electronic
Data Systems ("EDS") were split-off from the net assets of the Corporation.
As a result, the Class E Common Stock Fund was changed to the EDS Common
Stock Fund. No new contributions, loan repayments, or exchanges may be made
into the EDS Common Stock Fund. Dividends, if any, paid on EDS common stock
held by the Plan will be invested in an Income Fund investment option.
Assets held in this fund are expressed in terms of units and not shares of
stock. Each unit represents a proportionate interest in all of the assets of
this fund. The value of each participant's account is determined each
Business Day by the number of units to the participant's credit, multiplied
by the current unit value. The return on a participant's investment is based
on the value of units, which, in turn, is determined by the market price of
EDS common stock and by the interest earned on short-term investments held by
the fund.
DIRECTV Group Common Stock Fund - Effective December 23, 2003, GM Class H
stock was replaced with DIRECTV Group Common Stock and News Corporation
Preferred ADSs at the ratio of 84% and 16% respectively. The DIRECTV Group
Common Stock Fund will remain as an investment option; however, no further
contributions or exchanges from any other investment option into the DIRECTV
Group Common Stock Fund will be permitted during that time. Dividends if any
paid on the stock held by the Trust will be invested in the Promark Income
Fund Investment Option
Assets held in this fund are expressed in terms of units and not shares of
stock. Each unit represents a proportionate interest in all of the assets of
this fund. The value of each participant's account is determined each
Business Day by the number of units to the participant's credit, multiplied
by the current unit value. The return on a participant's investment is based
on the value of units, which, in turn, is determined by the market price of
DIRECTV Group Common Stock and by the interest earned on short-term
investments held by the fund.
News Corporation Preferred ADSs Fund - Effective December 23, 2003, GM Class
H stock was replaced with DIRECTV Group Common Stock Fund and News
Corporation Preferred ADSs at the ratio of 84% and 16% respectively. The News
Corporation Preferred ADSs Fund will remain as an investment option; however,
no further contributions or exchanges from any other investment option into
the NewsCorporation Preferred ADSs Fund will be permitted during that time.
Dividends if any paid on the stock held by the Trust will be invested in the
Promark Income Fund Investment Option.
Assets held in this fund are expressed in terms of units and not shares of
stock. Each unit represents a proportionate interest in all of the assets of
this fund. The value of each participant's account is determined each
Business Day by the number of units to the participant's credit, multiplied
by the current unit value. The return on a participant's investment is based
on the value of units, which, in turn, is determined by the market price of
EDS common stock and by the interest earned on short-term investments held by
the fund.
Delphi Common Stock Fund - On May 28, 1999, GM completed the spin-off of
Delphi Corporation (Delphi). In connection with that spin-off, Delphi common
stock was distributed to holders of GM $1-2/3 par value common stock. Such
distribution required the addition of the Delphi Common Stock Fund as an
investment option. The Delphi Common Stock Fund will remain as an investment
option; however, no further contributions or exchanges from any other
investment option into the Delphi Common Stock Fund will be permitted during
that time. Dividends if any paid on the stock held by the Trust will be
invested in the Promark Income Fund Investment Option.
-8-
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
NOTES TO FINANCIAL STATEMENTS - Continued
Assets held in this fund are expressed in terms of units and not shares of
stock. Each unit represents a proportionate interest in all of the assets of
this fund. The value of each participant's account is determined each
Business Day by the number of units to the participant's credit, multiplied
by the current unit value. The return on a participant's investment is based
on the value of units, which, in turn, is determined by the market
price of Delphi common stock and by the interest earned on short-term
investments held by the fund.
Raytheon Common Stock Fund - Effective December 17, 1997, GM spun-off the
defense electronics business of Hughes Electronics Corporation, a GM
subsidiary (Hughes Defense), to holders of GM $1-2/3 par value and Class H
common stock, which was immediately followed by the merger of Hughes Defense
with Raytheon Company. In connection with the above transaction, Raytheon
common stock was distributed to holders of GM $1-2/3 par value and Class H
common stocks.
Such distribution required the addition of the Raytheon Common Stock Fund as
an investment option. The Raytheon Common Stock Fund was an investment option
through December 31, 2003. No new contributions or exchanges from any other
investment options into the Raytheon Common Stock Fund are permitted.
Dividends, if any, paid on Raytheon common stock held by the Plan will be
invested in the Promark Income Fund investment option prior to allocation to
participant's accounts.
Assets held in this fund are expressed in terms of units and not shares of
stock. Each unit represents a proportionate interest in all of the assets of
this fund. The value of each participant's account is determined each
Business Day by the number of units to the participant's credit, multiplied
by the current unit value. The return on a participant's investment is based
on the value of units, which, in turn, is determined by the market price of
the Raytheon common stock and by the interest earned on short-term
investments held by the fund.
GM has chosen to invest the General Motors $1-2/3 Par Value Common Stock
Funds, the EDS Common Stock Fund, the Raytheon Common Stock Fund, the DIRECTV
Group Common Stock Fund, the News Corporation Preferred ADSs Fund, and the
Delphi Common Stock Fund in commingled funds managed by State Street Bank and
Trust ("State Street"). State Street is responsible for anticipating
liquidity needs and maintaining sufficient cash levels to process participant
transactions, determining the daily number of shares of each individual
common stock to be purchased or sold, and obtaining the best prices for any
purchases or sales.
PARTICIPANT LOANS - Once each year, eligible participants may borrow from
their plan accounts. The amount and term of the loans are limited under the
Plan. The loan interest rate will be established once each quarter at a rate
equal to the prevailing prime lending rate as of the last Business Day of the
previous quarter. Interest paid on the loans is credited back to the
borrowing participant's account in the Plan. Loans not repaid within the
provisions of the Plan are deemed to be distributions from participants'
accounts. Balances of participant loans were $389,871,741 and $405,991,149
for 2003 and 2002, respectively.
B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies followed in the preparation of the
accompanying financial statements are as follows:
oThe financial statements of the Plan are prepared under accounting
principles generally accepted in the United States of America using the
accrual method of accounting.
- 9 -
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
NOTES TO FINANCIAL STATEMENTS - Continued
o Investments are stated at fair value, except for benefit-responsive
investment contracts, which are stated at contract value. Fair values are
calculated by reference to published market quotations, where available;
where not available for certain common & collective trusts, various bases,
including cost, are used in determining estimates of fair values. Contract
value represents contributions made under the investment contracts, plus
interest, less withdrawals or administrative expenses charged by the issuer
of the contract.
o Security transactions are recorded on the trade date.
o Investment income is recognized as earned based on the terms of the
investments and the periods during which the investments are owned by the
Plan.
The preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect amounts reported
therein. Due to the inherent uncertainty involved in making estimates, actual
results reported in future periods may differ from those estimates. The Plan
utilizes various investment instruments including U.S. Government Securities,
corporate debt instruments, and corporate stocks. Investment securities, in
general, are exposed to various risks, such as interest rate, credit, and
overall market volatility. Due to the level of risk associated with certain
investment securities, it is reasonably possible that changes in the values
of investment securities will occur in the near term and that such changes
could materially affect the amounts reported in the financial statements.
C. INVESTMENTS
All of the investments in the Program are held in the General Motors Savings
Plans Master Trust (the "Master Trust") as more fully described in Note D.
The investment in the Master Trust is both participant-directed and
non-participant directed.
The synthetic guaranteed investment contracts ("contracts") owned by the Plan
and held in the Master Trust are recorded at contract value and are fully
benefit-responsive in accordance with the American Institute of Certified
Public Accountants' Statement of Position 94-4, Reporting of Investment
Contracts Held by Health and Welfare Benefit Plans and Defined Contribution
Pension Plans. The contracts are included in the financial statements at
contract value as reported to the Master Trust by the insurance company.
Contract value represents contributions made under the contract, plus
earnings, less participant withdrawals and administrative expenses.
Participants may ordinarily direct the withdrawal or transfer of all or a
portion of their investment at contract value. Contract value of such
contracts approximates fair value as of December 31, 2003 and 2002. Synthetic
investment contracts operate similarly to a separate account investment
contract, except that the assets are placed in a trust (with ownership by the
Master Trust) rather than a separate account of the contract issuer.
The contracts provide for prospective crediting interest rate adjustments
based on the interest earnings and fair value of the underlying trust assets.
The crediting interest rates are reset quarterly and the contracts include
wrappers that provide that the crediting interest rates cannot be less than
zero. The average crediting interest rate of the synthetic investment
contracts as of December 31, 2003 and 2002 was approximately 5.12% and 5.22%,
respectively. The wrappers are entered into by the Master Trust to stabilize
the income generation of the Fund.
10 -
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
NOTES TO FINANCIAL STATEMENTS - Continued
The average yield for the synthetic investment contracts within the Promark
Income Fund was approximately 4.9% and 6.1% for the years ended December 31,
2003 and 2002, respectively. There are no reserves against the contract value
for credit risk of the contract issuer or otherwise.
D. THE MASTER TRUST
The Corporation established the Master Trust pursuant to a trust agreement
among the Corporation, Saturn Corporation, and State Street Bank and Trust,
as trustee of the funds, in order to permit the commingling of trust assets
of several employee benefit plans for investment and administrative purposes.
The assets of the Master Trust are held by State Street Bank and Trust.
Employee benefit plans participating in the Master Trust as of December 31,
2003 include the following:
o General Motors Savings-Stock Purchase Program for Salaried Employees
in the United States
o General Motors Personal Savings Plan for Hourly-Rate Employees in the
United States
o Saturn Individual Savings Plan for Represented Members
o General Motors Income Security Plan for Hourly-Rate Employees
Each participating employee benefit plan has an undivided interest in the net
assets and changes therein of each of the Master Trust investment options in
which the respective plan participates.
The net investment income of the commingled Master Trust investment funds
(the GM $1-2/3 Par Value Common Stock Fund, the EDS Common Stock Fund, the
Raytheon Common Stock Fund, the Delphi Common Stock Fund, News Corporation
Preferred ADS Fund, DIRECTV Group Common Stock Fund and the Promark Funds) is
allocated by the trustee to each participating plan based on that plan's
interest in each commingled Master Trust investment fund, as compared with
the total interest in each commingled Master Trust investment fund of all the
participating plans at the beginning of the period. For all other investment
options, the net investment income is separately earned by the respective
employee benefit plan, and is thus recorded separately in the accounting
records of the respective plan.
As of December 31, 2003 and 2002, the Plan had approximately a 38% interest
in the Master Trust.
- 11 -
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
NOTES TO FINANCIAL STATEMENTS - Continued
The net assets available for benefits of the Master Trust at December 31,
2003 and 2002 are summarized as follows (dollars in thousands):
ASSETS: 2003 2002
--------- ---------
Investments at fair value:
General Motors Corporation $1-2/3 par
value common stock $4,145,996 $2,799,227
General Motors Corporation Class H
$0.10 par value common stock 0 444,377
Electronic Data Systems common stock 62,815 52,182
Delphi Corporation common stock 197,925 172,688
DIRECTV Group common stock 466,099 0
News Corporation preferred ADSs 94,723 0
Raytheon common stock 69,696 79,089
---------- ----------
Total Common Stock 5,037,254 3,547,563
Mutual funds 6,473,483 4,954,961
Common and collective trusts 2,798,171 2,025,286
Loan funds 651,348 681,457
Other 143,656 350,373
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Total investments at fair value 15,103,912 11,559,640
Investments at contract value-
Guaranteed investment contracts 6,383,546 5,960,529
---------- ---------
Total investments 21,487,458 17,520,169
Receivables-
Accrued investment income 37 25
---------- ----------
Total receivables 37 25
---------- ----------
Total assets $21,487,495 $17,520,194
========== ==========
LIABILITIES:
Due to broker for securities purchased 1,815 1,331
---------- ----------
NET ASSETS AVAILABLE FOR BENEFITS $21,485,680 $17,518,863
========== ==========
- 12 -
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
NOTES TO FINANCIAL STATEMENTS - Continued
The total investment earnings of the Master Trust for the years ended
December 31, 2003 and 2002 are summarized as follows (dollars in thousands):
2003 2002
--------- ---------
Income from guaranteed investment contracts $319,210 $350,896
Interest 39,236 49,170
Dividends 163,945 145,357
Net appreciation (depreciation) in fair
value of investments:
General Motors Corporation $1-2/3 par
value common stock 1,296,970 (760,290)
Mutual funds 1,393,142 (1,140,939)
Common and collective trusts 585,264 (501,491)
Other 273,135 (461,322)
--------- ---------
Total net depreciation 3,548,511 (2,864,042)
--------- ---------
Total investment income(loss) $4,070,902 $(2,318,619)
========= =========
E. TRANSFER TO DELPHI
On April 12, 1999, the GM Board of Directors approved the complete separation
of Delphi by means of a spin-off, which was completed on May 28, 1999. Prior
to the spin-off, GM established the Delphi Personal Savings Plan (the "Delphi
Plan"), modeled after the GM Plan. On May 28, 1999, for those employees whom
elected to do so, assets representing Delphi participants' holdings in the GM
Plan were transferred and reinvested under the corresponding investment
options in the Delphi Plan. As a result of the separation, the Delphi Plan
was separated from the GM Plan, and is now administered by Delphi as a
separate plan. During 2003 and 2002 additional participants elected to
transfer their holdings between the Delphi and GM Plans resulting in a net
transfer out of the GM Plan of approximately $815 thousand and $10.8 million
for 2003 and 2002, respectively.
F. TERMINATION OF THE PLAN
Although it has not expressed any intent to do so, the Corporation has the
right to terminate the Plan subject to the provisions of ERISA. Such
termination of the Plan, if any, would not affect a participant's interest in
assets already in the Plan.
G. FEDERAL INCOME TAXES
By letter dated May 23, 2000, the IRS has determined and informed the
Corporation that the Plan is a tax-qualified employee benefit plan, meeting
the requirements of Sections 401(a) and 401(k) of the Internal Revenue Code
of 1986, as amended (the "Code"), and the Trust established thereunder was
determined to be exempt from United States Federal income taxes under Section
501(a) of the Code. The Plan's fiduciary and tax counsel believe that the
Plan is designed and currently being operated in compliance with the
applicable requirements of the Code, and therefore no provision for income
taxes has been included in the Plan's financial statements.
H. RELATED PARTY TRANSACTIONS
The Plan and Master Trust enter into certain related party transactions.
These generally include investments with trustees, fund managers, the
Corporation and its subsidiaries. Such transactions are within the scope of
the investment guidelines.
- 13 -
THE GENERAL MOTORS PERSONAL SAVINGS PLAN
FOR HOURLY-RATE EMPLOYEES IN THE UNITED STATES
Form 5500, SCHEDULE H, Part IV, Line 4i- Schedule of Assets
(Held at End of Year) DECEMBER 31, 2003 (dollars in
thousands)
Identity of Issuer, Borrower, Lessor or
Or Similar Party Current Value
* Participant loans, maturing through December 31, 2008 and December 31,
2007, with rates
ranging from 4.0% to 9.5% $393,260
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* Denotes parties-in-interest
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