General Motors 2014 Annual Report Download - page 48

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GENERAL MOTORS COMPANY AND SUBSIDIARIES
other long-term obligations, including contributions to non-U.S. pension plans and U.S. non-qualified plans of approximately $1.2
billion; (4) payments for previously announced restructuring activities of approximately $1.0 billion; (5) acquiring Ally Financial’s
equity interests in SAIC-GMAC of approximately $1.0 billion (acquisition completed in January 2015); 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 Item 1A. Risk Factors section of
this 2014 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 and compliance with certain covenants. Refer to Note 14
to our consolidated financial statements for the discussion of our financial and operational covenants.
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 automotive
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 including the payments related to our recent recalls and the related litigation.
In October 2014 we amended our two primary revolving credit facilities, increasing our aggregate borrowing capacity from $11.0
billion to $12.5 billion. These facilities consist of a three-year, $5.0 billion facility and a five-year, $7.5 billion facility. Both facilities
are available to the Company as well as certain wholly-owned subsidiaries, including GM Financial. The three-year, $5.0 billion
facility allows for borrowings in U.S. Dollars and other currencies and includes a GM Financial borrowing sub-limit of $2.0 billion, a
letter of credit sub-facility of $1.6 billion and a Brazilian Real sub-facility of $0.3 billion. The five-year, $7.5 billion facility allows
for borrowings in U.S. Dollars and other currencies and includes a GM Financial borrowing sub-limit of $2.0 billion, a letter of credit
sub-limit of $0.5 billion and a Brazilian Real sub-facility of $0.2 billion.
In November 2014 we issued $2.5 billion in aggregate principal amount of senior unsecured notes. In December 2014 we used
proceeds from the issuance of these notes plus available cash to redeem all of the remaining outstanding shares of our Series A
Preferred Stock for a total price of $3.9 billion which was equal to their aggregate liquidation amount, including accumulated
dividends. The redemption reduced Net income attributable to common stockholders by $0.8 billion.
In the year ended December 31, 2014 GM Financial issued $3.5 billion, Euro 500 million and CAD 400 million in aggregate
principal amount on senior unsecured notes. In January 2015 GM Financial issued $2.25 billion in aggregate principal amount of
senior unsecured notes comprising $1.0 billion of 3.15% notes due in January 2020, $1.0 billion of 4.0% notes due in January 2025
and $250 million of floating rate notes due in January 2020.
Automotive
Available Liquidity
Total available liquidity includes cash, cash equivalents, marketable securities and funds available under revolving credit facilities.
The amount of available liquidity is subject to intra-month and seasonal fluctuations and includes balances held by various business
units and subsidiaries worldwide that are needed to fund their operations.
We manage our liquidity primarily at our treasury centers as well as at certain of our significant consolidated overseas subsidiaries.
Available liquidity held within North America and at our regional treasury centers represented approximately 87% of our available
liquidity at December 31, 2014. A portion of our available liquidity includes amounts deemed indefinitely reinvested in our foreign
subsidiaries. We have used and will continue to use other methods including intercompany loans to utilize these funds across our
global operations as needed.
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