GENERAL MOTORS COMPANY AND SUBSIDIARIES
The following table summarizes net liquid assets balances (dollars in millions):
Successor
December 31, December 31,
2010
2009
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
UST Credit Agreement escrow and HCT escrow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liquid assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Short-term debt and current portion of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net liquid assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$21,061
5,555
1,008
27,624
(1,616)
(3,014)
$22,994
$ 22,679
134
13,430
36,243
(10,221)
(5,562)
$ 20,460
Total liquid assets of $27.6 billion exceeded our debt balances by $23.0 billion at December 31, 2010. The net liquid asset balance
of $23.0 billion at December 31, 2010 represented an increase of $2.5 billion compared to a net liquid assets balance of $20.5 billion
at December 31, 2009. The change was due to an increase of $5.4 billion in Marketable securities and a decrease of $11.2 billion in
Short-term and Long-term debt, partially offset by a reduction of $12.4 billion in the UST Credit Agreement and the HCT escrow
balances and a reduction of $1.6 billion in Cash and cash equivalents. The decrease in Short-term and Long-term debt primarily
related to: (1) repayment in full of the UST Loans of $5.7 billion; (2) repayment in full of the VEBA Notes (together with accrued
interest thereon)of $2.8 billion; (3) repayment in full of the Canadian Loan of $1.3 billion; (4) repayment in full of the GM Daewoo
revolving credit facility of $1.2 billion; and (5) repayment in full of the loans related to the Receivables Program of $0.2 billion.
Other Liquidity Issues
Receivables Program
In March 2009 the UST announced that it would provide up to $5.0 billion in financial assistance to automotive suppliers by
guaranteeing or purchasing certain of the receivables payable by Old GM and Chrysler LLC. The Receivables Program was to be
funded by a loan facility of up to $2.5 billion provided by the UST and by capital contributions from us up to $125 million. In
connection with the 363 Sale, we assumed the obligation of the Receivables Program. At December 31, 2009 our equity contributions
were $55 million and the UST had outstanding loans of $150 million to the Receivables Program. In March 2010 we repaid these
loans in full. The Receivables Program was terminated in accordance with its terms in April 2010. Upon termination, we shared
residual capital of $25 million in the program equally with the UST and paid a termination fee of $44 million.
Loan Commitments
We have extended loan commitments to affiliated companies and critical business partners. These commitments can be triggered
under certain conditions and expire in the years ranging from 2011 to 2014. At December 31, 2010 we had a total commitment of
$600 million outstanding with no amounts loaned.
Status of Credit Ratings
We have been assigned initial ratings by four independent credit rating agencies: Dominion Bond Rating Services (DBRS), Fitch
Ratings (Fitch), Moody’s Investor Service (Moody’s), and Standard & Poor’s (S&P). The ratings indicate the agencies’ assessment of
a company’s creditworthiness such as its ability to timely pay principal and interest on debt securities, dividends on preferred
securities and other contractual obligations. Lower credit ratings generally represent higher borrowing costs and reduced access to
capital markets for a company. The agencies consider a number of business and financial factors when determining ratings including,
but not limited to, our competitive position, sustainability of our profits and cash flows, our balance sheet and liquidity profile and our
ability to meet obligations under adverse economic scenarios.
General Motors Company 2010 Annual Report 83