General Motors 2015 Annual Report Download - page 42

Table of Contents
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DBRS Limited: Revised their outlook to Positive from Stable in October 2015.
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Liquidity Overview
GM Financial's primary sources of cash are finance charge income, leasing income, servicing fees, net distributions from securitizations, secured and
unsecured debt borrowings and collections and recoveries on finance receivables. GM Financial's primary uses of cash are purchases of retail finance
receivables and leased vehicles, funding of commercial finance receivables, repayment of secured and unsecured debt, funding credit enhancement
requirements for secured debt, operating expenses, interest costs and business acquisitions. GM Financial continues to monitor and evaluate opportunities to
optimize its liquidity position and the mix of its debt.
Available Liquidity
The following table summarizes GM Financial's available liquidity (dollars in billions):


Cash and cash equivalents $ 3.1
$ 3.0
Borrowing capacity on unpledged eligible assets 9.7
4.8
Borrowing capacity on committed unsecured lines of credit 0.9
0.5
Available liquidity $ 13.7
$ 8.3
In the year ended December 31, 2015 available liquidity increased due primarily to: (1) decreased usage of secured debt facilities as a result of the issuance
of senior unsecured notes; and (2) decreased usage of committed unsecured lines of credit primarily due to funding provided by retail banking deposits in
Germany.
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, 2015 secured and committed
unsecured credit facilities totaled $22.4 billion and $1.5 billion, with advances outstanding of $7.5 billion and $0.6 billion.
Cash Flow
The following table summarizes GM Financial cash flows from operating, investing and financing activities (dollars in billions):
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






Net cash provided by operating activities $ 3.1
$ 1.9
$ 1.6
$ 1.2
$ 0.3
Net cash used in investing activities $ (22.2)
$ (10.5)
$ (8.2)
$ (11.7)
$ (2.3)
Net cash provided by financing activities $ 19.5
$ 9.8
$ 5.1
$ 9.7
$ 4.7
Operating Activities
In the year ended December 31, 2015 Net cash provided by operating activities increased due primarily to an increase in leased vehicle income, partially
offset by increased operating expenses and interest expense.
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