General Motors 2014 Annual Report Download - page 53

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GENERAL MOTORS COMPANY AND SUBSIDIARIES
The increase in available liquidity is due primarily to the issuance of $4.5 billion of senior unsecured notes in the year ended
December 31, 2014, as well as the capital contribution from GM of $0.7 billion for the purchase of Ally Financial’s equity interests in
SAIC-GMAC.
As previously mentioned GM Financial has the ability to borrow up to $2.0 billion against each of our three-year, $5.0 billion and
five-year, $7.5 billion revolving credit facilities. In September 2014 we and GM Financial entered into a support agreement which,
among other things, established commitments of funding from us to GM Financial. This agreement also provides that we will
continue to own all of GM Financial’s outstanding voting shares so long as any unsecured debt securities remain outstanding at GM
Financial. In addition we are required to use our commercially reasonable efforts to ensure GM Financial remains a subsidiary
borrower under our corporate revolving credit facilities.
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 or unsecured, and GM Financial repays these borrowings as appropriate under its cash management strategy.
At December 31, 2014 secured and committed unsecured credit facilities totaled $18.8 billion and $1.3 billion, with advances
outstanding of $7.0 billion and $0.8 billion.
Cash Flow
The following table summarizes GM Financial cash flows from operating, investing and financing activities (dollars in billions):
Years Ended December 31, Year Ended
2014 vs. 2013
Change
Year Ended
2013 vs. 2012
Change2014 2013 2012
Net cash provided by operating activities ........................... $ 1.9 $ 1.6 $ 1.0 $ 0.3 $ 0.6
Net cash used in investing activities ............................... $ (10.5) $ (8.2) $ (2.8) $ (2.3) $ (5.4)
Net cash provided by financing activities ........................... $ 9.8 $ 5.1 $ 2.3 $ 4.7 $ 2.8
Operating Activities
In the year ended December 31, 2014 net cash provided by operating activities increased due primarily to larger finance receivable
and lease portfolios.
In the year ended December 31, 2013 net cash provided by operating activities increased due primarily to the acquisitions of the
Ally Financial international operations.
Investing Activities
In the year ended December 31, 2014 net cash used in investing activities increased due primarily to: (1) increased loan purchases
and funding, net of collections, of $2.6 billion; and (2) increased purchases of leased vehicles of $2.5 billion; partially offset by
(3) decreased cash used for business acquisitions of $2.6 billion.
In the year ended December 31, 2013 net cash used in investing activities increased 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 the Ally Financial international operations; (3) increased purchases of
leased vehicles of $1.2 billion; and (4) an increase in restricted cash of $0.6 billion; partially offset by (5) increased collections and
recoveries on finance receivables of $22.8 billion.
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