General Motors 2010 Annual Report Download - page 83

GENERAL MOTORS COMPANY AND SUBSIDIARIES
In the period July 10, 2009 through December 31, 2009 we had positive cash flows from operating activities of $1.1 billion
primarily due to: (1) favorable managed working capital of $5.7 billion primarily driven by the effect of increased sales and
production on accounts payable and the timing of certain supplier payments; (2) OPEB expense in excess of cash payments of
$1.7 billion; (3) net income of $0.6 billion excluding depreciation, impairment and amortization of long-lived assets and finite-lived
intangible assets (including amortization of debt issuance costs and discounts); partially offset by (4) pension contributions of
$4.3 billion primarily to our Canadian hourly and salaried defined benefit pension plans; (5) restructuring payments of $1.2 billion;
(6) interest payments of $0.6 billion and (7) sales allowance payments in excess of current period accruals for sales incentives of
$0.5 billion driven by a reduction in dealer stock.
Old GM
In the period January 1, 2009 through July 9, 2009 Old GM had negative cash flows from operating activities of $18.3 billion
primarily due to: (1) net loss of $8.4 billion excluding Reorganization gains, net, and depreciation, impairment and amortization of
long-lived assets and finite-lived intangible assets (including amortization of debt issuance costs and discounts); (2) change in accrued
liabilities of $6.8 billion; (3) unfavorable managed working capital of $5.6 billion; and (4) payments of $0.4 billion for reorganization
costs associated with the Chapter 11 Proceedings.
In the year ended December 31, 2008 Old GM had negative cash flows from operating activities of $12.1 billion on a Loss from
continuing operations of $31.1 billion. Operating cash flows were unfavorably affected by lower volumes and the resulting losses in
North America and Western Europe, including the effect that lower production volumes had on working capital balances, and
postretirement benefit payments.
Investing Activities
GM
In the year ended December 31, 2010 we had positive cash flows from investing activities of $0.7 billion primarily due to: (1) a net
decrease in Restricted cash and marketable securities of $13.0 billion primarily related to withdrawals from the UST Credit
Agreement escrow account; (2) proceeds from the liquidation of operating leases of $0.3 billion; (3) proceeds received from the sale
of Nexteer of $0.3 billion; (4) proceeds from the sale of property, plants and equipment of $0.2 billion; partially offset by (5) net
investments in marketable securities with maturities greater than 90 days of $5.4 billion; (6) capital expenditures of $4.2 billion; and
(7) the acquisition of AmeriCredit for $3.5 billion.
In the period July 10, 2009 through December 31, 2009 we had positive cash flows from investing activities of $2.2 billion
primarily due to: (1) a reduction in Restricted cash and marketable securities of $5.2 billion primarily related to withdrawals from the
UST escrow account; (2) $0.6 billion related to the liquidation of automotive retail leases; (3) an increase as a result of the
consolidation of Saab of $0.2 billion; (4) tax distributions of $0.1 billion on Ally Financial common stock; partially offset by (5) net
cash payments of $2.0 billion related to the acquisition of Nexteer, four domestic facilities and Class A Membership Interests in New
Delphi; and (6) capital expenditures of $1.9 billion.
Old GM
In the period January 1, 2009 through July 9, 2009 Old GM had negative cash flows from investing activities of $21.1 billion
primarily due to: (1) increase in Restricted cash and marketable securities of $18.0 billion driven primarily by the establishment of the
UST and Canadian escrow accounts; (2) capital expenditures of $3.5 billion; and (3) investment in Ally Financial of $0.9 billion;
partially offset by (4) liquidation of operating leases of $1.3 billion.
In the year ended December 31, 2008 Old GM had negative cash flows from investing activities of $1.8 billion primarily related to:
(1) capital expenditures of $7.5 billion; (2) an increase in notes receivable of $0.4 billion; partially offset by (3) liquidations of operating
leases of $3.6 billion; (4) net liquidations of marketable securities in an amount of $2.1 billion; (5) proceeds for the sale of real estate,
plants and equipment of $0.3 billion; and (6) proceeds from the sale of business units and equity investments of $0.2 billion.
General Motors Company 2010 Annual Report 81