General Motors 2013 Annual Report Download - page 43

GENERAL MOTORS COMPANY AND SUBSIDIARIES
Financing Activities
In the year ended December 31, 2013 net cash provided by financing activities increased by $2.8 billion due primarily to the
increased borrowings under secured and unsecured debt and issuance of senior notes of $14.0 billion, partially offset by the increased
debt repayment of $9.7 billion and the repayment of $1.4 billion in certain debt assumed as part of the Ally Financial international
operations acquisitions.
In the year ended December 31, 2012 net cash provided by financing activities increased by $0.8 billion due primarily to a decrease
in repayment of debt.
Defined Benefit Pension Plan Contributions
Eligible U.S. salaried employees hired prior to January 2001 participated in a defined benefit pension plan which was frozen as of
September 30, 2012. All eligible salaried employees now participate in a defined contribution plan. Hourly employees hired prior to
October 2007 generally participate in plans which provide benefits of stated amounts for each year of service as well as supplemental
benefits for employees who retire with 30 years of service before normal retirement age. Hourly employees hired after September
2007 participate in a defined contribution plan. Our policy for qualified defined benefit pension plans is to contribute annually not less
than the minimum required by applicable law and regulation, or to directly pay benefit payments where appropriate. At December 31,
2013 all legal funding requirements had been met. We expect to contribute $0.1 billion to our U.S. non-qualified plans and $0.7
billion to our non-U.S. pension plans in 2014.
The following table summarizes contributions made to the defined benefit pension plans or direct payments (dollars in millions):
Years Ended December 31,
2013 2012 2011
U.S. hourly and salaried ............................................................ $ 128 $ 2,420 $ 1,962
Non-U.S. ....................................................................... 886 855 836
Total contributions ................................................................ $ 1,014 $ 3,275 $ 2,798
We provided short-term, interest-free, unsecured loans of $2.2 billion to provide the U.S. salaried defined benefit pension plan with
incremental liquidity to pay ongoing benefits and administrative costs. Through December 31, 2013 contributions of $1.7 billion were
made from the $2.2 billion loans and the remaining amounts were repaid.
We made a voluntary contribution in January 2011 to our U.S. hourly and salaried defined benefit pension plans of 61 million
shares of our common stock valued at $2.2 billion for funding purposes at the time of contribution. The contributed shares qualified as
a plan asset for funding purposes at the time of contribution and as a plan asset valued at $1.9 billion for accounting purposes in July
2011. This was a voluntary contribution above our funding requirements for the pension plans.
The following table summarizes the underfunded status of pension plans on a U.S. GAAP basis (dollars in millions):
December 31, 2013 December 31, 2012
U.S. hourly and salaried .......................................................... $ 6,552 $ 13,148
U.S. nonqualified ............................................................... 762 877
Total U.S. pension plans .......................................................... 7,314 14,025
Non-U.S. ...................................................................... 12,542 13,760
Total underfunded ............................................................... $ 19,856 $ 27,785
The decrease in underfunded status of the U.S. pension plans was due primarily to: (1) actuarial gains due primarily to discount rate
increases of $7.7 billion; (2) actual return on plan assets of $2.1 billion; and (3) contributions of $0.1 billion; partially offset by
(4) service and interest costs of $3.1 billion.
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