General Motors 2011 Annual Report Download - page 48

GENERAL MOTORS COMPANY AND SUBSIDIARIES
Cash Flow
Operating Activities
GM
In the year ended December 31, 2011 cash flows from operating activities increased by $0.8 billion due primarily to: (1) increased
net income excluding depreciation, impairment charges and amortization of $2.9 billion; (2) decreased pension cash contributions and
OPEB payments in excess of expense of $2.3 billion; partially offset by (3) unfavorable changes in working capital of $1.6 billion due
to the termination of the advance wholesale agreements and increased production; and (4) other activities of $2.7 billion which
include non-cash gains relating to the sale of our investments in New Delphi and Ally Financial preferred stock of $1.9 billion.
Significant pension and OPEB related activity included a cash contribution as part of the HCT settlement of $0.8 billion in 2011 and a
voluntary contribution made to our U.S. pension plans of $4.0 billion in 2010. Refer to Note 18 to our consolidated financial
statements for additional information on the HCT settlement.
In the year ended December 31, 2010 we had positive cash flows from operating activities of $6.6 billion due primarily to: (1) Net
income of $6.4 billion, which included non-cash charges of $7.1 billion resulting from depreciation, impairment and amortization of
long-lived assets and finite-lived intangible assets (including amortization of debt issuance costs and discounts); (2) dividends
received of $0.7 billion related to our China JVs; partially offset by (3) pension contributions and OPEB payments of $5.7 billion
related to voluntary contributions to U.S. hourly and salary pension plans of $4.0 billion; (4) payments on our previously announced
restructuring programs of $1.3 billion partially offset by net charges of $0.6 billion; (5) dealer wind-down payments of $0.4 billion;
and (6) unfavorable changes in working capital of $0.6 billion. The unfavorable changes in working capital were related to increases
in accounts receivables, inventories and the completion of a change to weekly payment terms to our suppliers, partially offset by an
increase in accounts payable related to increased production volumes.
In the period July 10, 2009 through December 31, 2009 we had positive cash flows from operating activities of $1.1 billion due
primarily to: (1) favorable managed working capital of $5.7 billion due to 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 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 due to 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 due
primarily 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.
Investing Activities
GM
In the year ended December 31, 2011 cash flows from investing activities decreased by $11.3 billion due primarily to: (1) a
reduction in restricted cash returned from escrow accounts of $11.6 billion; (2) an increase in net acquisitions of marketable securities
with maturities exceeding 90 days of $5.2 billion; and (3) increased capital expenditures of $2.0 billion as we continue to reinvest in
our business; partially offset by (4) proceeds from the sale of our investments in New Delphi and preferred stock in Ally Financial of
$4.8 billion in 2011; and (5) the acquisition of AmeriCredit for $3.5 billion in 2010. The decrease in restricted cash was due to the
release of $1.0 billion following the implementation of the HCT in 2011 and the release of funds held in an escrow account relating to
the UST Credit Agreement of $12.5 billion in 2010.
46 General Motors Company 2011 Annual Report