General Motors 2013 Annual Report Download - page 42

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GENERAL MOTORS COMPANY AND SUBSIDIARIES
The increase in liquidity is due primarily to the net increase of $0.8 billion resulting from the Ally Financial international
operations acquisition.
GM Financial has the ability to borrow up to $4.0 billion against our three-year $5.5 billion secured revolving credit facility subject
to available capacity and borrowing base restrictions. In the event GM Financial borrows against the facility, it is expected such
borrowings would be short-term in nature. The facility is not guaranteed or secured by any GM Financial assets or subsidiaries.
Credit Facilities
In the normal course of business, in addition to using its available cash, GM Financial utilizes borrowings under its credit facilities,
which may be secured and structured as securitizations, or may be unsecured, and GM Financial repays these borrowings as
appropriate under its cash management strategy. At December 31, 2013 secured and unsecured credit facilities totaled $15.6 billion
and $4.0 billion, with advances outstanding of $9.0 billion and $3.0 billion.
GM Financial is required to hold certain funds in restricted cash accounts to provide additional collateral for borrowings under
certain secured credit facilities. GM Financial’s secured credit facilities contain various covenants requiring minimum financial ratios,
asset quality and portfolio performance ratios (portfolio net loss and delinquency ratios, and pool level cumulative net loss ratios) as
well as limits on deferment levels. Failure to meet any of these covenants could result in an event of default under these agreements. If
an event of default occurs under these agreements, the lenders could elect to declare all amounts outstanding under these agreements
to be immediately due and payable, enforce their interests against collateral pledged under these agreements, restrict GM Financial’s
ability to obtain additional borrowings under these agreements and/or remove GM Financial as servicer. At December 31, 2013 GM
Financial was in compliance with all covenants related to its credit facilities.
Cash Flow
The following table summarizes GM Financial cash flows from operating, investing and financing activities (dollars in millions):
Years Ended December 31,
2013 2012 2011
Net cash provided by operating activities .............................................. $ 1,609 $ 974 $ 737
Net cash used in investing activities .................................................. $ (8,215) $ (2,776) $ (2,112)
Net cash provided by financing activities .............................................. $ 5,143 $ 2,318 $ 1,520
Operating Activities
In the year ended December 31, 2013 net cash provided by operating activities increased by $0.6 billion due primarily to the
acquisitions of Ally Financial international operations.
In the year ended December 31, 2012 net cash provided by operating activities increased by $0.2 billion due primarily to higher
revenues resulting from a $2.4 billion increase in average earning assets.
Investing Activities
In the year ended December 31, 2013 net cash used in investing activities increased by $5.4 billion due primarily to: (1) increased
funding of commercial finance receivables of $19.9 billion and purchase of consumer finance receivables of $4.0 billion; (2) net cash
payment of $2.6 billion made in the current year on the acquisitions of Ally Financial international operations; (3) increased purchase
of leased vehicles of $1.2 billion; and (4) increase in restricted cash of $0.6 billion; partially offset by (5) increased collections and
recoveries on finance receivables of $22.8 billion.
In the year ended December 31, 2012 net cash used in investing activities increased by $0.7 billion due primarily to: (1) increased
funding of commercial finance receivables of $1.2 billion and purchase of consumer finance receivables of $0.6 billion; and
(2) increased purchase of leased vehicles of $0.2 billion; partially offset by (3) increased collections and recoveries on finance
receivables of $1.0 billion.
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2013 ANNUAL REPORT