General Motors 2013 Annual Report Download - page 37

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GENERAL MOTORS COMPANY AND SUBSIDIARIES
The following table summarizes the changes in Corporate Net income (loss) attributable to stockholders (dollars in billions):
Years Ended
2013 vs. 2012 2012 vs. 2011
Deferred tax asset valuation allowance release in U.S. and Canada ................................ $ (36.3) $ 36.3
Other tax related matters .................................................................. (0.5) (1.4)
Impairment of investment in Ally Financial common stock ...................................... — 0.6
Premium paid to purchase common stock from UST ............................................ 0.4 (0.4)
Gain on sale of Ally Financial preferred and common stock ...................................... 0.5 (0.3)
Loss on extinguishment of debt ............................................................ — (0.3)
Other ................................................................................. — (0.2)
$ (35.9) $ 34.3
Liquidity and Capital Resources
Liquidity Overview
We believe that our current level of cash and cash equivalents, marketable securities and availability under our secured revolving
credit facilities will be sufficient to meet our liquidity needs. However we expect to have substantial cash requirements going forward
which we plan to fund through total available liquidity and cash flows generated from operations. Our future uses of cash, which may
vary from time to time based on market conditions and other factors, are centered around three objectives: (1) reinvest in our business;
(2) continue to strengthen our balance sheet and competitive position; and (3) return cash to shareholders. Our known future material
uses of cash include, among other possible demands: (1) capital expenditures of approximately $7.5 billion annually as well as
engineering and product development activities; (2) acquiring Ally Financial’s equity interests in GMAC-SAIC, as subsequently
discussed, for approximately $0.9 billion; (3) payments for previously announced restructuring activities of up to $1.1 billion;
(4) payments to service debt and other long-term obligations; (5) payments to purchase the remaining outstanding shares of our Series
A Preferred Stock with a liquidation amount of $3.9 billion once the shares become redeemable on or after December 31, 2014; and
(6) dividend payments on our common stock that are declared by our Board of Directors.
Our liquidity plans are subject to a number of risks and uncertainties, including those described in the “Risk Factors” section of this
2013 Form 10-K, some of which are outside our control. Macroeconomic conditions could limit our ability to successfully execute our
business plans and therefore adversely affect our liquidity plans.
Recent Management Initiatives
We continue to monitor and evaluate opportunities to strengthen our balance sheet and competitive position over the long-term.
These actions may include opportunistic payments to reduce our long-term obligations while maintaining minimal financial leverage
as well as the possibility of acquisitions, dispositions and strategic alliances that we believe would generate significant advantages and
substantially strengthen our business. These actions may include additional loans, investments with our joint venture partners or the
acquisitions of certain operations or ownership stakes in outside businesses. These actions may negatively impact our liquidity in the
short-term.
In November 2012 GM Financial entered into agreements with Ally Financial to acquire Ally Financial’s automotive finance and
financial services businesses in Europe and Latin America and Ally Financial’s equity interests in GMAC-SAIC for approximately
$4.2 billion. GM Financial has completed the acquisitions of Ally Financial’s European and Latin American automotive finance
operations for $3.3 billion in 2013. Increases in GM Financial receivables and GM Financial Short-term and Long-term debt in 2013
compared to 2012 were due primarily to the acquisition. Refer to Note 3 to our consolidated financial statements for additional
information on these acquisitions.
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