See reconciliation of EBIT-Adjusted on Slide S2
G ENERAL MO TO RS C O MPANY
S EL EC T S U PPL EMENTAL F I NANC I AL I NF O RMATIO N
NON-GAAP MEASURES
Management us es earnings before interes t and tax es (EBIT) -Adjus t ed, EBIT -Adjus ted margin, return on invested capital
( RO IC), and Automotiv e adjus ted fr ee c as h flow in its financ ial and operational dec is ion mak ing proc es s es , for internal
r epor ting and as par t of its for ec as ting and budgeting proc es s es as they prov ide additional trans parenc y of our c ore
oper ations . EBIT - Adjus ted, RO IC, and Automotiv e adjus ted free c as h flow allow management to v iew operating trends ,
per form analy tic al c ompar is ons and benc hmark performanc e amongs t other c ompanies in our indus try . In addition, RO IC
allows management to as s es s how effec tiv ely we are deploy ing our as s ets . Management us es EPS - diluted adjus ted to
r ev iew our c ons olidated diluted ear nings per s hare on a c ons is tent bas is .
W e us e EBIT - Adjus ted for our automotiv e s egments . EBIT - Adjus ted ex c ludes interes t inc ome, interes t ex pens e and
inc ome tax es and inc ludes c er tain additional s pec ial adjus tments . W e us e inc ome before inc ome tax es - adjus ted for G M
Financ ial bec aus e we believ e inter es t inc ome and interes t ex pens e are part of operating res ults . EBIT - Adjus ted margins
ar e c alc ulated as EBIT - Adjus ted div ided by net s ales and rev enue.
W e define RO IC as EBIT - Adjus ted for the trailing four quarters div ided by av erage net as s ets during that period, whic h is
c ons idered to be av er age equity balanc es adjus ted for c ertain as s ets and liabili t ies during the s ame period.
W e us e adjus ted fr ee c as h flow to r ev iew the liquidity of our automotiv e operations . G M meas ures adjus ted free c as h
flow as c as h flow from operations les s c apital ex penditures adjus ted for management ac tions, primari ly related to
s tr engthening our balanc e s heet, s uc h as ac c rued interes t on prepay ments of debt and v oluntary c ontributions to
employ ee benefit plans .
W e c alc ulate EPS - diluted adjus ted as inc ome attributable to c ommon s toc k holders les s c ertain adjus tments noted abov e
for EBIT - adjus ted on an after - tax bas is as well as c ertain inc ome tax adjus tments div ided by weighted - av erage c ommon
s har es outs tanding - diluted.
O ur c alc ulations of EBIT - Adjus ted, EBIT - Adjus ted margin, EPS - diluted adjus ted, RO IC, and Automotiv e adjus ted free
cash flow are c ons idered non -GAAP financ ial meas ures bec aus e we c alc ulate them us ing financial measures that have
been adjus ted from the mos t dir ec tly c omparable U.S. G AAP financ ial meas ure. O ur c alc ulation of thes e non - G AAP
meas ures may not be c ompar able to s imilar ly titled meas ures of other c ompanies due to potential differenc es between
c ompanies in the method of c alc ulation. As a res ult the us e of our non - G AAP meas ures has limitat ions and s hould not be
c ons idered s uperior to, in is olation fr om, or as a s ubs titute for, related U.S. G AAP meas ures .
S1
RECONCILIATION OF EBIT-ADJUSTED
Years Ended
$ (B)
2015
2014
2013
GM North America (GMNA)
11.0
6.6
7.5
GM Europe (GME)
(0.8)
(1.4)
(0.9)
1.4
1.2
1.3
(0.6)
(0.2)
0.3
GM Financial (GMF)
0.8
0.8
0.9
Total Operating Segments
11.8
7.1
9.1
Corporate and Eliminations
(1.0)
(0.6)
(0.5)
EBIT-Adjusted
10.8
6.5
8.6
Special Items*
(3.2)
(2.3)
(0.8)
Automotive Interest Income
0.2
0.2
0.2
Automotive Interest Expense
(0.4)
(0.4)
(0.3)
Gain (Loss) on Extinguishment of Debt
0.4
0.2
(0.2)
Income Tax Benefit (Expense)
1.9
(0.2)
(2.1)
Net Income Attributable to Stockholders
9.7
3.9
5.3
Operating Segments
GM International Operations (GMIO)
GM South America (GMSA)
Memo: Consolidated Recall Related Expenses
2.8
Memo: Consolidated EBIT-Adjusted Excluding Recall Related Expenses
9.3
Memo: GMNA Recall Related Expenses
Memo: GMNA EBIT-Adjusted Excluding Recall Related Expenses
2.4
9.0
Additional information on adjustments can be found in filed 10-K
Note: Results may not foot due to rounding
S2