General Motors 2011 Annual Report Download - page 24

GENERAL MOTORS COMPANY AND SUBSIDIARIES
Reconciliation of Consolidated, Automotive and GM Financial Segment Results
Management believes EBIT-adjusted provides meaningful supplemental information regarding our automotive segments’ operating
results because it excludes interest income, expense and income taxes as well as certain additional amounts. Management does not
consider these excluded items when assessing and measuring the operational and financial performance of the organization, its
management teams and when making decisions to allocate resources, such as capital investment, among business units and for internal
reporting and as part of its forecasting and budgeting processes. Such adjustments include impairment charges related to goodwill and
certain investments, gains or losses on the settlement/extinguishment of obligations and gains or losses on the sale of non-core
investments. Management believes this measure allows it to readily view operating trends, perform analytical comparisons and
benchmark performance between periods and among geographic regions. We believe EBIT-adjusted is useful in allowing for greater
transparency of our core operations and are therefore used by management in its financial and operational decision-making.
While management believes that EBIT-adjusted provides useful information, it is not an operating measure under U.S. GAAP, and
there are limitations associated with its use. Our calculation of EBIT-adjusted may not be completely comparable to similarly titled
measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of
EBIT-adjusted has limitations and should not be considered in isolation from, or as a substitute for, other measures such as Net
income (loss) or Net income (loss) attributable to stockholders. Due to these limitations, EBIT-adjusted is used as a supplement to
U.S. GAAP measures.
Management believes income before income taxes provides meaningful supplemental information regarding GM Financial’s
operating results. GM Financial uses a separate measure from our automotive operations because management believes interest
income and interest expense are part of operating results when assessing and measuring the operational and financial performance of
the segment. EBIT-adjusted is not presented for the period January 1, 2009 through July 9, 2009 as Old GM did not identify
adjustments to EBIT during this period.
The following tables summarize the reconciliation of our automotive segments EBIT-adjusted and GM Financial’s income before
income taxes to Net income (loss) attributable to stockholders and provides supplemental detail of the adjustments (dollars in millions):
Successor Predecessor
Year Ended
December 31, 2011
Year Ended
December 31, 2010
July 10, 2009
Through
December 31, 2009
January 1, 2009
Through
July 9, 2009
Automotive
EBIT-adjusted
GMNA (a) ............................ $7,194 93.6% $ 5,688 82.4% $(2,065) 130.3% $ (11,092) (9.8)%
GME (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (747) (9.7)% (1,953) (28.3)% (814) 51.4% (2,815) (2.5)%
GMIO (a) ............................. 1,897 24.7% 2,262 32.8% 789 (49.8)% (486) (0.4)%
GMSA (a) ............................ (122) (1.6)% 818 11.9% 417 (26.3)% (454) (0.4)%
Corporate and eliminations (b) ............ (540) (7.0)% 86 1.2% 88 (5.6)% 128,044 113.1%
Total automotive EBIT-adjusted ........... 7,682 100.0% 6,901 100.0% (1,585) 100.0% 113,197 100.0%
Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . 861 447 (3,202) —
Corporate interest income . . . . . . . . . . . . . . . . 455 465 184 183
Automotive interest expense . . . . . . . . . . . . . . 540 1,098 694 5,428
Automotive Financing
GM Financial income before income taxes . . . . . 622 129
Consolidated Income Taxes
Income tax expense (benefit) ............... (110) 672 (1,000) (1,166)
Net income (loss) attributable to
stockholders .......................... $9,190 $ 6,172 $(4,297) $109,118
(a) Our automotive operations interest and income taxes are recorded centrally in Corporate; therefore, there are no reconciling items
for our automotive operating segments between EBIT-adjusted and Net income (loss) attributable to stockholders.
22 General Motors Company 2011 Annual Report