General Motors 2011 Annual Report Download - page 44

GENERAL MOTORS COMPANY AND SUBSIDIARIES
payments made by Ally Financial on behalf of our U.S. dealers pursuant to Ally Financial’s wholesale financing arrangements with
dealers. Similar modifications were made in Canada and Mexico in the year ended December 31, 2011. The wholesale advance
agreements covered the period for which vehicles are in transit between assembly plants and dealerships. We no longer receive
payments in advance of the date vehicles purchased by dealers are scheduled to be delivered in GMNA resulting in an increase to our
accounts receivable balance of $1.1 billion at December 31, 2011. The amount of the increase to our accounts receivable balance
depends on sales volumes, seasonal fluctuations and certain other factors.
In January 2011 we withdrew our application for loans available under Section 136 of the EISA. This decision is consistent with
our stated goal to reduce our financial leverage.
Investment Actions
We accumulated Canadian Dollar denominated deposits and investments of $6.4 billion in the year ended December 31, 2011.
These deposits and investments will incur foreign exchange gains or losses based on the movement of the Canadian Dollar in relation
to the U.S. Dollar and will therefore reduce our net Canadian Dollar foreign exchange exposure, which primarily relates to pension
and OPEB liabilities. We expect to maintain a sufficient amount of Canadian Dollar deposits and investments to offset the liabilities
denominated in Canadian Dollars. These funds continue to be available to fund our normal ongoing operations and are included in our
available liquidity.
We continue to monitor and explore the sale of other non-core assets. In March 2011 we sold our Class A Membership Interests in
New Delphi to New Delphi for $3.8 billion. Also in March 2011 we sold our Ally Financial preferred stock for $1.0 billion. Proceeds
from these asset sales were used to strengthen liquidity and are to be used for general corporate purposes.
From time to time we consider the possibility of acquisitions, dispositions and strategic alliances that we believe would generate
significant advantages and substantially strengthen our business. This may include additional loans or investments with our joint
venture partners and may negatively impact our liquidity in the short-term.
Automotive
Available Liquidity
Available liquidity includes cash, cash equivalents and marketable securities balances. At December 31, 2011 our available
liquidity was $31.6 billion, excluding funds available under credit facilities of $5.9 billion. The amount of available liquidity is
subject to intra-month and seasonal fluctuations and includes balances held by various business units and subsidiaries worldwide that
are needed to fund their operations.
42 General Motors Company 2011 Annual Report