General Motors 2012 Annual Report Download - page 49

GENERAL MOTORS COMPANY AND SUBSIDIARIES
Credit Facilities
We use credit facilities as a mechanism to provide additional flexibility in managing our global liquidity. The following table
summarizes our credit facilities (dollars in millions):
Total Credit Facilities
Amounts Available
Under Credit Facilities
December 31, 2012 (a) December 31, 2011 December 31, 2012 (a) December 31, 2011
Secured revolving credit facilities ................ $11,000 $5,000 $10,793 $5,000
Other (b) .................................... 415 338 326 308
Total ....................................... $11,415 $5,338 $11,119 $5,308
(a) GM Financial has not borrowed under the three-year $5.5 billion facility but has the ability to borrow up to $4.0 billion.
(b) Consists of credit facilities available at our foreign subsidiaries that are not individually significant.
Our primary borrowing capacity under credit facilities comes from our secured revolving credit facilities comprising a three-year,
$5.5 billion facility and a five-year, $5.5 billion facility. We entered into the secured revolving credit facilities in November 2012 to
replace our five-year, $5.0 billion secured revolving credit facility that we entered into in October 2010. Obligations under the new
secured revolving credit facilities are secured by the same collateral that had secured our prior facility. Availability under the secured
revolving credit facilities is subject to borrowing base restrictions.
The three-year, $5.5 billion facility is available to GM Financial as well as other certain wholly-owned domestic and international
subsidiaries. The facility includes various sub-limits including a GM Financial borrowing sub-limit of $4.0 billion, a multi-currency
borrowing sub-limit of $3.5 billion, a Brazilian Real borrowing sub-limit of $0.5 billion, and a letter of credit sub-facility limit of
$1.5 billion. We had amounts in use under the letter of credit sub-facility of $0.2 billion at December 31, 2012. We may borrow
against this facility from time to time for strategic initiatives and for general corporate purposes.
The five-year, $5.5 billion facility is not available to GM Financial and allows for borrowings in U.S. Dollars and other currencies
and includes a letter of credit sub-limit of $0.5 billion. While we do not expect to draw on the five-year facility, it provides additional
liquidity, financing flexibility and is available for general corporate purposes. Refer to Note 17 to our consolidated financial
statements for additional details on our secured revolving credit facilities.
We and our subsidiaries use credit facilities to fund working capital needs and other general corporate purposes.
Cash Flow
Operating Activities
In the year ended December 31, 2012 cash flows from operating activities increased by $2.2 billion due primarily to: (1) increase in
accrued and other liabilities of $1.7 billion due primarily to dealer and customer sales allowances and warranty; (2) favorable changes
in working capital of $1.6 billion including the termination of advance wholesale agreements in GMNA which adversely impacted
working capital in 2011; (3) favorable changes in daily rental fleet activities of $0.9 billion; partially offset by (4) an increase in
pension contributions and OPEB payments of $1.5 billion relating to the contributions to the Retiree Plan for the purchase of annuity
contracts partially offset by OPEB payments relating to the HCT settlement in 2011; and (5) the premium paid to purchase our
common stock from the UST of $0.4 billion in December 2012.
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
General Motors Company 2012 ANNUAL REPORT46