General Motors 2014 Annual Report Download - page 129

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 25. Segment Reporting
We analyze the results of our business through the following segments: GMNA, GME, GMIO, GMSA and GM Financial. The
chief operating decision maker evaluates the operating results and performance of our automotive segments through income before
interest and income taxes, as adjusted for additional amounts, which is presented net of noncontrolling interests. The chief operating
decision maker evaluates GM Financial through income before income taxes-adjusted because he/she believes interest income and
interest expense are part of operating results when assessing and measuring the operational and financial performance of the segment.
Each segment has a manager responsible for executing our strategies. Our automotive manufacturing operations are integrated within
the segments, benefit from broad-based trade agreements and are subject to regulatory requirements, such as corporate average fuel
economy regulations. While not all vehicles within a segment are individually profitable on a fully allocated cost basis, those vehicles
are needed in our product mix in order to attract customers to dealer showrooms and to maintain sales volumes for other, more
profitable vehicles. Because of these and other factors, we do not manage our business on an individual brand or vehicle basis.
Substantially all of the cars, trucks and parts produced are marketed through retail dealers in North America, and through
distributors and dealers outside of North America, the substantial majority of which are independently owned.
In addition to the products sold to dealers for consumer retail sales, cars and trucks are also sold to fleet customers, including daily
rental car companies, commercial fleet customers, leasing companies and governments. Sales to fleet customers are completed
through the network of dealers and in some cases sold directly to fleet customers. Retail and fleet customers can obtain a wide range
of aftersale vehicle services and products through the dealer network, such as maintenance, light repairs, collision repairs, vehicle
accessories and extended service warranties.
GMNA primarily meets the demands of customers in North America with vehicles developed, manufactured and/or marketed under
the Buick, Cadillac, Chevrolet and GMC brands. The demands of customers outside North America are primarily met with vehicles
developed, manufactured and/or marketed under the Buick, Cadillac, Chevrolet, GMC, Holden, Opel and Vauxhall brands. We also
had equity ownership stakes directly or indirectly in entities through various regional subsidiaries, primarily in Asia. These companies
design, manufacture and market vehicles under the Alpheon, Baojun, Buick, Cadillac, Chevrolet, Jiefang and Wuling brands.
Our automotive operations’ interest income and interest expense are recorded centrally in Corporate. Corporate assets consist
primarily of cash and cash equivalents, marketable securities and intercompany balances. All intersegment balances and transactions
have been eliminated in consolidation.
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