Notes to Consolidated Financial Statements
Note 25. Quarterly Financial Statements (unaudited)
The following tables present the quarterly results for 2006 and 2005, including the effects of the restatement on the applicable periods. For further details on the restatement refer to Notes 1 and 24 to these Consolidated Financial Statements.
First quarter |
Second quarter |
Third quarter |
Fourth quarter |
||||||||||||||||||
2006 ($ in millions) |
Previously reported |
Restated |
Previously reported |
Restated |
Previously reported |
Restated |
|||||||||||||||
Net financing revenue before provision for credit losses |
$ |
2,140 |
$ |
1,891 |
$ |
1,908 |
$ |
1,743 |
$ |
1,691 |
$ |
2,033 |
$ |
1,876 |
|||||||
Provision for credit losses |
(135 |
) |
(166 |
) |
(285 |
) |
(268 |
) |
(486 |
) |
(503 |
) |
(1,063 |
) |
|||||||
Other revenue |
2,911 |
2,899 |
3,542 |
3,522 |
3,083 |
3,015 |
3,184 |
||||||||||||||
Total net financing revenue and other income |
4,916 |
4,624 |
5,165 |
4,997 |
4,288 |
4,545 |
3,997 |
||||||||||||||
Noninterest expense |
3,928 |
3,907 |
3,835 |
3,850 |
4,542 |
4,535 |
3,643 |
||||||||||||||
Income (loss) before income tax expense |
988 |
717 |
1,330 |
1,147 |
(254 |
) |
10 |
354 |
|||||||||||||
Income tax expense (benefit) |
316 |
222 |
430 |
360 |
70 |
183 |
(662 |
)(b) |
|||||||||||||
Net income (loss) |
$ |
672 |
$ |
495 |
$ |
900 |
$ |
787 |
$ |
(324 |
)(a) |
$ |
(173 |
)(a) |
$ |
1,016 |
|||||
(a) Decline in third quarter 2006 net income primarily relates to goodwill impairment taken at our Commercial Finance business. Refer to Note 11 to our Consolidated Financial Statements for further details. |
(b) Effective November 28, 2006, GMAC, along with certain U.S. subsidiaries, became disregarded or pass-through entities for U.S. federal income tax purposes. Due to our change in tax status, a net deferred tax liability was eliminated through income tax expense totaling $791 million. |
First quarter |
Second quarter |
Third quarter |
Fourth quarter |
|||||||||||||||||||||
2005 ($ in millions) |
Previously reported |
Restated |
Previously reported |
Restated |
Previously reported |
Restated |
Previously reported |
Restated |
||||||||||||||||
Net financing revenue before provision for credit losses |
$ |
2,187 |
$ |
2,015 |
$ |
2,267 |
$ |
2,510 |
$ |
2,004 |
$ |
1,861 |
$ |
1,926 |
$ |
1,820 |
||||||||
Provision for credit losses |
(329 |
) |
(313 |
) |
(201 |
) |
(217 |
) |
(385 |
) |
(385 |
) |
(170 |
) |
(159 |
) |
||||||||
Other revenue |
2,841 |
2,859 |
2,784 |
2,805 |
3,288 |
3,274 |
2,995 |
3,017 |
||||||||||||||||
Total net financing revenue and other income |
4,699 |
4,561 |
4,850 |
5,098 |
4,907 |
4,750 |
4,751 |
4,678 |
||||||||||||||||
Noninterest expense |
3,596 |
3,574 |
3,638 |
3,613 |
3,856 |
3,854 |
4,518 |
4,567 |
||||||||||||||||
Income before income tax expense |
1,103 |
987 |
1,212 |
1,485 |
1,051 |
896 |
233 |
111 |
||||||||||||||||
Income tax expense (benefit) |
375 |
363 |
396 |
511 |
376 |
324 |
58 |
(1 |
) |
|||||||||||||||
Net income |
$ |
728 |
$ |
624 |
$ |
816 |
$ |
974 |
$ |
675 |
$ |
572 |
$ |
175 |
(a) | $ |
112 |
(a) | ||||||
(a) Decline in fourth quarter 2005 net income primarily relates to goodwill impairments taken at our Commercial Finance business and Capmark. Refer to Note 11 to our Consolidated Financial Statements for further details. |