General Motors GENERAL MOTORS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For The Years Ended December 31, -------------------------------- 2004 2003 2002 ---- ---- ---- Cash flows from operating activities (dollars in millions) Income from continuing operations $2,805 $2,862 $1,975 Adjustments to reconcile income from continuing operations to net cash provided by operating activities Depreciation and amortization expenses 14,152 13,513 11,569 Mortgage servicing rights amortization 1,384 1,602 3,871 Provision for financing losses 1,944 1,721 2,153 Other postretirement employee benefit (OPEB) expense 4,567 4,599 4,108 OPEB payments (3,974) (3,536) (3,334) VEBA / 401(h) (contributions) (8,618) (3,000) (1,000) Pension expense 2,456 3,412 1,780 Pension contributions (919) (18,168) (5,156) Retiree lump sum and vehicle voucher expense, net of payments (329) 923 (254) Net change in mortgage loans 445 456 (4,715) Net change in mortgage securities 597 236 (656) Change in other investments and miscellaneous assets 57 416 1,914 Change in other operating assets and liabilities (Note 1) (1,628) (2,277) (3,391) Other 122 197 2,211 ------ ----- ------ Net cash provided by operating activities (Note 1) $13,061 $2,956 $11,075 ------ ----- ------ Cash flows from investing activities Expenditures for property (7,753) (7,091) (6,871) Investments in marketable securities - acquisitions (15,278) (28,660) (39,386) Investments in marketable securities - liquidations 15,350 24,253 35,688 Net change in mortgage servicing rights (1,554) (2,557) (1,711) Increase in finance receivables (40,278) (59,978) (51,081) Proceeds from sale of finance receivables 23,385 22,182 30,013 Proceeds form sale of business units - 4,148 - Operating leases - acquisitions (14,324) (11,032) (16,070) Operating leases - liquidations 7,696 9,604 13,504 Investments in companies, net of cash acquired (Note 1) (60) (201) (870) Other 1,048 (1,516) 667 ------ ------ ------ Net cash (used in) investing activities (Note 1) (31,768) (50,848) (36,117) ------ ------ ------ Cash flows from financing activities Net increase in loans payable 2,192 235 770 Long-term debt - borrowings 73,511 97,391 51,411 Long-term debt - repayments (57,822) (38,962) (24,365) Repurchases of common and preference stocks - - (97) Proceeds from issuing common stocks - - 62 Proceeds from sales of treasury stocks - 60 19 Cash dividends paid to stockholders (1,129) (1,121) (1,121) Other 4,723 1,319 333 ------ ------ ------ Net cash provided by financing activities 21,475 58,922 27,012 ------ ------ ------ Net cash provided by discontinued operations - 275 - Effect of exchange rate changes on cash and cash equivalents 671 929 495 ----- ------ ------ Net increase in cash and cash equivalents 3,439 12,234 2,465 Cash and cash equivalents at beginning of the year 32,554 20,320 17,855 ------ ------ ------ Cash and cash equivalents at end of the year $35,993 $32,554 $20,320 ====== ====== ======

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