UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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GENERAL MOTORS COMPANY
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GENERAL MOTORS COMPANY
2016 CHAIRMANS LETTER
We are here to win.
To Our Shareholders,
2016 was a very strong year for General Motors, one that included the launch of dozens of award-winning products around the world, record sales and earnings, substantial return of capital to shareholders and remarkable progress in our drive to define and lead the future of personal mobility. As always, we continued to put the customer at the center of everything we do as we recast the company to win in a rapidly changing world.
As the graphics on this page show, our companys financial performance in 2016 set new records on a number of key metrics and extended our track record of consistently improving results.
A telling indicator of this improvement is our earnings-per-share performance. Since 2013, EPS-diluted-adjusted has grown 92 percent from $3.18 to a record $6.12 in 2016. We fully expect to grow EPS further in 2017.
Other records for 2016 include net revenue, EBIT-adjusted, EBIT-adjusted margin and adjusted automotive free cash flow. As we have for several years, we achieved our financial commitments in 2016 and remain on track to achieve our longer-term goals. |
2016 FINANCIAL RESULTS
92.5%
EPS-diluted-adjusted growth vs. 2013* |
46.1%
EBIT-adjusted growth vs. 2013* |
36.5%
Basis-point growth in EBIT-adjusted margins vs. 2013 |
* | Non-GAAP financial measure. See Page 16 for more information. |
** | Represents core operating performance, excludes recalls. |
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$18 billion returned to shareholders since 2012 |
Creating Value for Shareholders
We continue to execute a very transparent and disciplined capital allocation framework that deploys capital where it is expected to deliver higher returns for our owners over the long term. After appropriately reinvesting in the business and maintaining our investment-grade balance sheet, we have committed to return all available free cash flow to shareholders.
In 2016, we returned $4.8 billion to shareholders through dividends and share repurchases. From 2012 through 2016, we returned $18 billion to shareholders, which represents more than 90 percent of free cash flow.
In January of this year, the GM board approved an additional $5 billion in common stock repurchases under our share-repurchase program, bringing the total authorization under the program to $14 billion. In 2015 and 2016, the company repurchased a total of $6 billion in common stock.
Our total shareholder return in 2016 was 7.5 percent, highest among major global automakers.
GM is also an industry leader in return on invested capital. At the end of 2016, our ROIC-adjusted was 28.9 percent. Importantly, we have shown the willingness and discipline to take actions when we believe we can prioritize our resources to achieve higher returns.
We demonstrated this discipline most significantly in March 2017, when we announced the sale of our Opel/Vauxhall and GM Financial European operations to the PSA Group, a transaction that will unlock significant value for our shareholders and allow us to focus more intently on higher-return opportunities. We expect the transaction to |
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Industry sales leader in North America, including the U.S., and South America
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highest overall U.S. customer loyalty for the second consecutive year. In China, four GM brands Baojun, Buick, Chevrolet and Wuling accounted for nine segment winners in the China Automobile Customer Satisfaction Index and seven segment winners in the J.D. Power Vehicle Dependability, Initial Quality and APEAL studies. And in Europe, Opel ADAM placed first among small cars in the J.D. Power Vehicle Dependability Study.
Among individual brands, Cadillac had its best global sales performance since 1986 and is now enjoying its highest average transaction prices ever. In China, Cadillac was named Luxury Car Brand of the Year by Auto.Sina.com.
In 2016, Chevrolet had its best U.S. retail sales performance in 10 years. In fact, Chevrolet has grown its U.S. retail market share faster than any other full-line brand for the last two consecutive years.
Buick marked its fourth straight year of record global sales more than 1.4 million vehicles, the most in its 113-year history. Buick was also one of only two brands in the industry last year to earn a National Highway Traffic Safety Administration five-star Overall Vehicle Safety Score for every model in its lineup.
GMC last year had its best U.S. retail sales performance in 12 years and now has the highest average transaction prices of all non-luxury brands.
Regional Highlights
In 2016, GM remained the industry sales leader in North America, including the U.S., and South America. Around the world, we recorded our fourth consecutive year of record global sales. |
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In North America, we achieved record earnings last year and exceeded our 10-percent-margin goal for the second consecutive year. GM overall enjoyed its highest U.S. retail sales volume since 2007 and grew its year-over-year retail market share faster than any other full-line automaker.
In the U.S., we support a strong and competitive economy and automotive industry. The U.S. is our home market, and we are committed to a manufacturing base that is competitive globally and grows jobs, while safeguarding the environment and promoting vehicle safety. We believe that long-term investment in sustainable manufacturing is good for our investors, dealers, suppliers, employees and customers.
In January of this year, we announced plans to invest $1 billion in our U.S. manufacturing operations, which along with other actions, will create or retain up to 7,000 U.S. jobs in the next few years. In March, we announced plans to add an additional 900 jobs in Michigan over the next 12 months. These latest moves support our ongoing strategy to streamline and simplify our operations, gain efficiencies and grow our business. They are part of our continued strong commitment to our U.S. operations, where we have invested more than $21 billion since 2009.
In China, GM and its joint-venture partners launched 13 new or refreshed models in 2016 and sold a record 3.87 million vehicles. In 2017, we plan to launch 18 more models, with a particular emphasis on higher-margin SUVs, crossovers and luxury vehicles. Between 2016 and 2020, GM will introduce more than 10 New Energy Vehicles (NEVs) to the China market.
In South America in 2016, Chevrolet continued as the market-share leader in Brazil and throughout the region. In Brazil, we continued to position the company for strong growth when macroeconomic conditions improve.
In Europe, Opel/Vauxhall, notwithstanding the negative impact of Brexit, increased sales by 4 percent in 2016 and reduced losses by about $600 million.
Adjacent Business Growth
In addition to our core business, we see excellent growth and profit opportunities in a number of adjacent areas.
GM Financial continues to grow as our full-captive finance company, providing coverage for more than 85 percent of our global sales footprint at the close of 2016. The business is growing both in terms of profitability and long-term benefits, especially customer satisfaction and retention.
Another excellent opportunity is our aftermarket business for service parts and accessories. Robust growth in recent years in the number of GM vehicles on the road especially in North America and China has created outstanding opportunities to grow revenue and profitability in this high-margin business.
A third area with great potential is our OnStar vehicle connectivity service. We have now surpassed 12 million OnStar-connected vehicles around the world, including nearly 40 models with 4G LTE, Apple CarPlay and Android Auto the largest fleet |
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in the industry by far. In 2016, use of OnStars 4G data connection grew by about 200 percent to more than 4.2 million gigabytes the equivalent of more than 17 million hours of streaming video. Globally, our customers now interact with myChevrolet, myCadillac, myBuick, myGMC and our other branded mobile apps on average more than 18 million times a month. We expect OnStar growth to continue at a rapid pace for years to come and are working both to monetize the data and use it to improve the customer experience.
All told, we expect adjacent businesses to contribute an incremental $2 billion to GMs EBIT in 2019 versus 2015.
Driving Efficiencies
We continue to maintain an intense focus on reducing costs and improving efficiency, both to improve our current results and position the company to perform well throughout the business cycle.
Earlier this year, we increased our cost efficiency target by $1 billion to $6.5 billion through 2018. We expect these savings will more than offset our incremental investments in technology, engineering and brand building. At the end of 2016, we had already achieved $4 billion toward our goal.
Throughout the company, we operate on the belief that everything can be made better. In 2016, our Operational Excellence team chartered 1,400 efficiency projects that we expect to deliver $1.5 billion in business impact. Im confident we will do much more.
Enhancing Lifes Journey
At GM, we are committed to our core values of customers, relationships and excellence. We act with integrity, take accountability for results, do what we say we are going to do and do the right thing, even when it is hard.
We are working to create a company that stakeholders value, people aspire to work for and communities are proud to embrace. We start with a clear understanding of who we are and why we are here. We work every day to earn customers for life, create brands that inspire passion and loyalty, translate breakthrough technologies into vehicles and experiences that people love, serve and improve the communities in which we live and work around the world and strive to build the most valued automotive company.
In 2016, we revamped our global philanthropy and corporate-giving strategy to better reflect and align our priorities as a responsible corporate citizen, specifically focusing on areas where we believe we can have a direct impact. Around the world, we now focus on expanding and improving science, technology, engineering and math (STEM) education, advancing vehicle and road safety and promoting economic empowerment in the communities where we live and work. For businesses to thrive, we know that communities must flourish.
GM Student Corps is an innovative summer internship program in which GM retirees and college students mentor high school students working on community-service |
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projects in their own schools and neighborhoods. In 2016, GM Student Corps involved 130 students from Detroit-area high schools. Separately, through our employee volunteer program, more than 12,000 GM employees volunteered nearly 110,000 hours in 2016 with 148 different nonprofit organizations.
GM is an industry leader in using technology to solve big problems, improve the planet and enhance peoples lives. In 2016, we achieved our 2020 commitment to generate 125 megawatts of clean energy four years ahead of schedule. Building on that success, we announced a plan to source all electrical power for our 350 facilities in 59 countries with renewable energy by 2050 the only automaker to make such a commitment.
2016 also marked a record year for our landfill-free commitment. We added 23 new sites last year and now have a total of 152 landfill-free sites worldwide more than any other automaker including 100 manufacturing sites. This exceeds our 2020 landfill-free target again, four years ahead of schedule. We continue to pursue more landfill-free operations with the goal of becoming a zero-waste company.
We are also expanding our focus to embrace the circular economy and the opportunities it offers to drive broader social and economic benefits. One example is our water-bottle recycling effort in Michigan. Working with the city of Flint and six regional GM facilities, we collected more than four million used water bottles in 2016 and worked with local companies and organizations to recycle the bottles into insulating fleece used in coats for the homeless, air-filtration components for use at GM facilities and a noise-reducing fabric that covers the engine of our Chevrolet Equinox crossover.
Building a Workplace of Choice
When it comes to the sustainability of our workforce, we are investing in both our current and future employees. We want people to know that if they truly want to make the world a better place, they can make a real difference here.
From boardroom to dealer showroom, we are committed to building a dynamic and diverse team that shares a passion for solving the worlds mobility challenges. And were creating a culture, an energy and an attitude that says anything is possible.
Our team has changed rapidly in recent years. Today, 35 percent of our salaried employees have worked at the company less than four years. Many of our new hires come from the same sources that feed the global tech economy. In fact, our applications from Silicon Valley were up more than 100 percent in 2016. Around the world, GM job applications were up more than 24 percent last year.
At GM, we recognize growing concerns around the world about the impact of globalization and technology on labor markets, and we are committed to helping our employees acquire and update the skills they need for success in todays economy.
In 2014, we launched our Shifting Gears program in partnership with the U.S. Army and Raytheon Company to help soldiers transition from military service into successful careers as GM service technicians at more than 4,200 GM dealerships across the U.S. The initiative is part of GMs longstanding commitment to help veterans succeed by connecting them with education and career opportunities beyond their military service. |
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BOARD OF DIRECTORS
As of April 1, 2017
MARY BARRA Chairman & Chief Executive Officer, General Motors Company, Joined Board 01/15/14
TIM SOLSO Independent Lead Director, General Motors Company and Retired Chairman & Chief Executive Officer, Cummins Inc., Joined Board 06/12/12
JOE ASHTON Retired Vice President, United Auto Workers, Joined Board 08/11/14 |
LINDA GOODEN Retired Executive Vice President, Information Systems & Global Solutions, Lockheed Martin Corporation, Joined Board 02/05/15
JOE JIMENEZ Chief Executive Officer, Novartis AG, Joined Board 06/09/15
JANE MENDILLO Retired President & Chief Executive Officer, Harvard Management Company, Joined Board 06/07/16
MIKE MULLEN Former Chairman, Joint Chiefs of Staff, Joined Board 02/01/13 |
JIM MULVA Retired Chairman & Chief Executive Officer, ConocoPhillips, Joined Board 06/12/12
PAT RUSSO Chairman, Hewlett Packard Enterprise Company, Joined Board 07/24/09
TOM SCHOEWE Retired Executive Vice President & Chief Financial Officer, Wal-Mart Stores, Inc., Joined Board 11/14/11
CAROL STEPHENSON Retired Dean, Ivey Business School, The University of Western Ontario, Joined Board 07/24/09 | ||
LEADERSHIP TEAM
As of April 1, 2017
MARY BARRA Chairman & Chief Executive Officer
DAN AMMANN President
ALAN BATEY Executive Vice President & President, North America
DAN BERCE Senior Vice President President & CEO, GM Financial
ALICIA BOLER-DAVIS Executive Vice President, Global Manufacturing
TONY CERVONE Senior Vice President, Global Communications
MARGARET CURRY Vice President, Tax
JOHAN DE NYSSCHEN Executive Vice President & President, Cadillac |
BARRY ENGLE Executive Vice President & President, South America
CRAIG GLIDDEN Executive Vice President & General Counsel, Legal and Public Policy
STEFAN JACOBY Executive Vice President & President, GM International
VICTORIA MCINNIS Vice President, Audit
RANDY MOTT Senior Vice President, Global Information Technology & Chief Information Officer
KARL-THOMAS NEUMANN Executive Vice President & President, Europe
JOHN QUATTRONE Senior Vice President, Global Human Resources |
MARK REUSS Executive Vice President, Global Product Development, Purchasing and Supply Chain
CHUCK STEVENS Executive Vice President & Chief Financial Officer
DHIVYA SURYADEVARA Vice President, Finance and Treasurer
JILL SUTTON Deputy General Counsel & Corporate Secretary
TOM TIMKO Vice President, Controller & Chief Accounting Officer
MATT TSIEN Executive Vice President & President, GM China | ||
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2016 FINANCIAL
HIGHLIGHTS
$166B
|
$9.4B | $6.00 | ||||||
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WORLDWIDE NET SALES & REVENUE |
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS |
DILUTED EARNINGS PER COMMON SHARE |
Source: Bloomberg
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VEHICLE SALES
AND NET REVENUE
(in millions, except units per share & employment) |
2015 | 2016 | ||||||
VEHICLE SALES, INCLUDING JOINT VENTURES (000s units) |
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GMNA |
3,613 | 3,630 | ||||||
GME |
1,176 | 1,207 | ||||||
GMIO |
4,525 | 4,587 | ||||||
GMSA |
645 | 584 | ||||||
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Worldwide Vehicle Sales |
9,959 | 10,008 | ||||||
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FINANCIAL RESULTS |
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Worldwide Net Sales & Revenue |
$ | 152,356 | $ | 166,380 | ||||
Net Income Attributable to Common Stockholders |
$ | 9,687 | $ | 9,427 | ||||
Earnings Before Interest and Income Taxes - Adjusted* |
$ | 10,814 | $ | 12,530 | ||||
Diluted Earnings Per Common Share |
$ | 5.91 | $ | 6.00 | ||||
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AUTOMOTIVE LIQUIDITY & KEY OBLIGATIONS |
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AVAILABLE AUTOMOTIVE LIQUIDITY |
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Cash and Marketable Securities |
$ | 20,340 | $ | 21,600 | ||||
Credit Facilities |
12,152 | 14,035 | ||||||
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Total Available Automotive Liquidity |
$ | 32,492 | $ | 35,635 | ||||
KEY AUTOMOTIVE OBLIGATIONS |
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Debt |
$ | 8,765 | $ | 10,752 | ||||
Underfunded U.S. Pension |
10,414 | 7,205 | ||||||
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Total Automotive Obligations |
$ | 19,179 | $ | 17,957 | ||||
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EMPLOYMENT - YEAR END (000s) |
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GMNA |
115 | 124 | ||||||
GME |
36 | 38 | ||||||
GMIO |
32 | 32 | ||||||
GMSA |
24 | 22 | ||||||
GM Financial |
8 | 9 | ||||||
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Worldwide Employment |
215 | 225 |
* | Includes GM Financial on an Earnings Before Tax (EBT)-adjusted basis |
14 2016 CHAIRMANS LETTER
FORWARD-LOOKING
STATEMENTS
In this document and in reports we subsequently file and have previously filed with the U.S. Securities and Exchange Commission (the SEC) on Forms 10-K and 10-Q and file or furnish on Form 8-K, and in related comments by our management, we use words like anticipate, appears, approximately, believe, continue, could, designed, effect, estimate, evaluate, expect, forecast, goal, initiative, intend, may, objective, outlook, plan, potential, priorities, project, pursue, seek, should, target, when, will, would, or the negative of any of those words or similar expressions to identify forward-looking statements that represent our current judgment about possible future events. In making these statements we rely on assumptions and analyses based on our experience and perception of historical trends, current conditions and expected future developments as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors, both positive and negative. These factors, which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K, include among others the following: (1) our ability to deliver new products, services and customer experiences in response to new participants in the automotive industry; (2) our ability to fund and introduce new and improved vehicle models that are able to attract a sufficient number of consumers; (3) the success of our full-size pick-up trucks and SUVs, which may be affected by increases in the price of oil; (4) global automobile market sales volume, which can be volatile; (5) aggressive competition in China; (6) the international scale and footprint of our operations which exposes us to a variety of domestic and foreign political, economic and regulatory risks, including the risk of changes in existing, the adoption of new, or the introduction of novel interpretations of, laws regulations, policies or other activities of governments, agencies and similar organizations particularly laws, regulations and policies relating to free trade agreements, vehicle safety including recalls, and, including such actions that may affect the production, licensing, distribution or sale of our products, the cost thereof or applicable tax rates; (7) our joint ventures, which we cannot operate solely for our benefit and over which we may have limited control; (8) our ability to comply with extensive laws and regulations applicable to our industry, including those regarding fuel economy and emissions; (9) costs and risks associated with litigation and government investigations including the potential imposition of damages, substantial fines, civil lawsuits and criminal penalties, interruptions of business, modification of business practices, equitable remedies and other sanctions against us in connection with various legal proceedings and investigations relating to our various recalls; (10) our ability to comply with the terms of the DPA; (11) our ability to maintain quality control over our vehicles and avoid material vehicle recalls and the cost and effect on our reputation and products; (12) the ability of our suppliers to deliver parts, systems and components without disruption and at such times to allow us to meet production schedules; (13) our dependence on our manufacturing facilities around the world; (14) our highly competitive industry, which is characterized by excess manufacturing capacity and the use of incentives and the introduction of new and improved vehicle models by our competitors; (15) our ability to realize production efficiencies and to achieve reductions in costs as we implement operating effectiveness initiatives throughout our automotive operations; (16) our ability to successfully restructure our operations in various countries; (17) our ability to manage risks related to security breaches and other disruptions to our vehicles, information technology networks and systems; (18) our continued ability to develop captive financing capability through GM Financial; (19) significant increases in our pension expense or projected pension contributions resulting from changes in the value of plan assets, the discount rate applied to value the pension liabilities or mortality or other assumption changes; (20) significant changes in economic, political, regulatory environment, market conditions, foreign currency exchange rates or political stability in the countries in which we operate, particularly China, with the effect of competition from new market entrants and in the United Kingdom with passage of a referendum to discontinue membership in the European Union; and (21) risks and uncertainties associated with the consummation of the sale of Opel/Vauxhall to the PSA Group, including satisfaction of the closing conditions.
We caution readers not to place undue reliance on forward-looking statements. We undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors that affect the subject of these statements, except where we are expressly required to do so by law.
IMPORTANT ADDITIONAL INFORMATION
REGARDING PROXY SOLICITATION
General Motors Company (GM) has filed a definitive proxy statement and form of WHITE proxy card with the U.S. Securities and Exchange Commission (the SEC) in connection with the solicitation of proxies for GMs 2017 Annual Meeting. GM, its directors and certain of its executive officers may be deemed participants in the solicitation of proxies from shareholders in respect of the 2017 Annual Meeting. Information regarding the names of GMs directors and executive officers and their respective interests in GM by security holdings or otherwise is set forth in the definitive proxy statement. Details concerning the nominees of GMs Board of Directors for election at the 2017 Annual Meeting are included in the definitive proxy statement. BEFORE MAKING ANY VOTING DECISION, INVESTORS AND SHAREHOLDERS OF THE COMPANY ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH OR FURNISHED TO THE SEC, INCLUDING THE COMPANYS DEFINITIVE PROXY STATEMENT AND ANY SUPPLEMENTS THERETO AND ACCOMPANYING WHITE PROXY CARD, BECAUSE THEY CONTAIN IMPORTANT INFORMATION. Investors and shareholders can obtain a copy of the definitive proxy statement and other relevant documents filed by GM free of charge from the SECs website, www.sec.gov. GMs shareholders can also obtain, without charge, a copy of the definitive proxy statement and other relevant documents filed by GM by directing a request by mail to GM Shareholder Relations at General Motors Company, Mail Code 482-C23-D24, 300 Renaissance Center, Detroit, Michigan 48265 or by email to shareholder.relations@gm.com, by calling GMs proxy solicitor, Innisfree M&A Incorporated, toll-free at 1-877-825-8964, or from the investor relations section of GMs website, http://www.gm.com/investors.
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GENERAL MOTORS COMPANY AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
Our non-GAAP measures include earnings before interest and taxes (EBIT)-adjusted presented net of noncontrolling interests, EPS-diluted-adjusted, return on invested capital-adjusted (ROIC-adjusted) and adjusted automotive free cash flow. Our calculation of these non-GAAP measures may not be 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 these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or as a substitute for, related U.S. GAAP measures.
These non-GAAP measures allow management and investors to view operating trends, perform analytical comparisons and benchmark performance between periods and among geographic regions to understand operating performance without regard to items we do not consider a component of our core operating performance. Furthermore, these non-GAAP measures allow investors the opportunity to measure and monitor our performance against our externally communicated targets and evaluate the investment decisions being made by management to improve ROIC-adjusted. Management uses these measures in its financial, investment and operational decision-making processes, for internal reporting and as part of its forecasting and budgeting processes. Further, our Board of Directors uses these and other measures as key metrics to determine management performance under our performance-based compensation plans. For these reasons we believe these non-GAAP measures are useful for our investors.
EBIT-adjusted is used by management and can be used by investors to review our consolidated operating results because it excludes automotive interest income, automotive interest expense and income taxes as well as certain additional adjustments that are not considered part of our core operations. Examples of adjustments to EBIT include but are not limited to impairment charges related to goodwill; impairment charges on long-lived assets and other exit costs resulting from strategic shifts in our operations or discrete market and business conditions; costs arising from the ignition switch recall and related legal matters; and certain currency devaluations associated with hyperinflationary economies. For EBIT-adjusted and our other non-GAAP measures, once we have made an adjustment in the current period for an item, we will also adjust the related non-GAAP measure in any future periods in which there is an impact from the item.
EPS-diluted-adjusted is used by management and can be used by investors to review our consolidated diluted earnings per share results on a consistent basis. EPS-diluted-adjusted is calculated as net income attributable to common stockholders-diluted less certain adjustments noted above for EBIT-adjusted and gains or losses on the extinguishment of debt obligations on an after-tax basis as well as redemptions of preferred stock and certain income tax adjustments divided by weighted-average common shares outstanding-diluted. Examples of income tax adjustments include the establishment or reversal of significant deferred tax asset valuation allowances.
Adjusted automotive free cash flow is used by management and can be used by investors to review the liquidity of our automotive operations and to measure and monitor our performance against our capital allocation program and evaluate our automotive liquidity against the substantial cash requirements of our automotive operations. We measure adjusted automotive free cash flow as automotive cash flow from operations less capital expenditures adjusted for management actions, primarily related to strengthening our balance sheet, such as prepayments of debt and discretionary contributions to employee benefit plans.
16 2016 CHAIRMANS LETTER
2013 | 2014 | 2015 | 2016 | |||||||||||||
OPERATING SEGMENTS (dollars in millions) |
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GMNA(a) |
$ | 7,461 | $ | 6,603 | $ | 11,026 | $ | 12,047 | ||||||||
GME(a) |
(869 | ) | (1,369 | ) | (813 | ) | (257 | ) | ||||||||
GMIO(a) |
1,255 | 1,222 | 1,397 | 1,135 | ||||||||||||
GMSA(a) |
327 | (180 | ) | (622 | ) | (374 | ) | |||||||||
GM Financial(b) |
898 | 803 | 837 | 913 | ||||||||||||
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Total Operating Segments |
$ | 9,072 | $ | 7,079 | $ | 11,825 | $ | 13,464 | ||||||||
Corporate and Eliminations |
(494 | ) | (585 | ) | (1,011 | ) | (934 | ) | ||||||||
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EBIT-ADJUSTED (dollars in millions) |
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Net Income Attributable to Stockholders |
$ | 5,346 | $ | 3,949 | $ | 9,687 | $ | 9,427 | ||||||||
Income Tax Expense (benefit) |
2,127 | 228 | (1,897 | ) | 2,416 | |||||||||||
(Gain) Loss on Extinguishment of Debt |
212 | (202 | ) | (449 | ) | | ||||||||||
Automotive Interest Expense |
334 | 403 | 443 | 572 | ||||||||||||
Automotive Interest Income |
(246 | ) | (211 | ) | (169 | ) | (185 | ) | ||||||||
Adjustments |
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Ignition Switch Recall and Related Legal Matters |
| 400 | 1,785 | 300 | ||||||||||||
Recall Campaign Catch-up Adjustment |
| 874 | | | ||||||||||||
Thailand Asset Impairments |
| 158 | 297 | | ||||||||||||
Venezuela Currency Devaluation and Asset Impairment |
162 | 419 | 720 | | ||||||||||||
Russia Exit Costs and Asset Impairment |
| 245 | 438 | | ||||||||||||
Goodwill Impairment |
442 | 120 | | | ||||||||||||
Impairment Charges of Property and Other Assets |
774 | | | | ||||||||||||
Chevy Europe Exit Costs |
636 | | | | ||||||||||||
Gain on Sale of Equity Investment in Ally Financial |
(483 | ) | | | | |||||||||||
Korea Wage Litigation |
(577 | ) | | | | |||||||||||
Other |
(149 | ) | 111 | (41 | ) | | ||||||||||
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EBIT-adjusted |
$ | 8,578 | $ | 6,494 | $ | 10,814 | $ | 12,530 | ||||||||
Costs Related to Recall(c) |
| 2,762 | | | ||||||||||||
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EBIT-adjusted (excluding costs related to recall) |
$ | 8,578 | $ | 9,256 | $ | 10,814 | $ | 12,530 |
2013 | 2014 | 2015 | 2016 | |||||||||||||||||||||||||||||
Amount | Per Share | Amount | Per Share | Amount | Per Share | Amount | Per Share | |||||||||||||||||||||||||
EPS-DILUTED-ADJUSTED |
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Diluted Earnings per Common Share |
$ | 3,988 | $ | 2.38 | $ | 2,786 | $ | 1.65 | $ | 9,686 | $ | 5.91 | $ | 9,427 | $ | 6.00 | ||||||||||||||||
Adjustments |
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Loss on Extinguishment of Debt |
240 | 0.14 | (202 | ) | (0.12 | ) | (449 | ) | (0.27 | ) | | | ||||||||||||||||||||
VEBA Preferred Share Buyback |
816 | 0.49 | | | | | | | ||||||||||||||||||||||||
Redemption and Purchase of Series A Preferred Stock |
| | 794 | 0.47 | | | | | ||||||||||||||||||||||||
All Other Adjustments(d) |
805 | 0.48 | 2,327 | 1.38 | 3,199 | 1.95 | 300 | 0.19 | ||||||||||||||||||||||||
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Total Adjustments |
$ | 1,861 | $ | 1.11 | $ | 2,919 | $ | 1.73 | $ | 2,750 | $ | 1.68 | $ | 300 | $ | 0.19 | ||||||||||||||||
Tax Effect on Adjustments(e) |
(42 | ) | (0.03 | ) | (561 | ) | (0.33 | ) | (201 | ) | (0.13 | ) | (114 | ) | (0.07 | ) | ||||||||||||||||
Tax Adjustments(f) |
(473 | ) | (0.28 | ) | | | (4,001 | ) | (2.44 | ) | | | ||||||||||||||||||||
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EPS-diluted-adjusted |
$ | 5,334 | $ | 3.18 | $ | 5,144 | $ | 3.05 | $ | 8,234 | $ | 5.02 | $ | 9,613 | $ | 6.12 | ||||||||||||||||
Impact of Costs Related to Recall |
| | | 1.07 | | | | | ||||||||||||||||||||||||
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EPS-diluted-adjusted (excluding costs related to recall) |
$ | 5,334 | $ | 3.18 | $ | 5,144 | $ | 4.12 | $ | 8,234 | $ | 5.02 | $ | 9,613 | $ | 6.12 |
2015 | 2016 | |||||||
ADJUSTED AUTOMOTIVE FREE CASH FLOW |
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Operating Cash Flow(g) |
$ | 9,979 | $ | 14,321 | ||||
Less: Capital Expenditures |
(7,784 | ) | (9,435 | ) | ||||
Adjustments - Discretionary Pension Plan Contributions |
| 1,982 | ||||||
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Adjusted Automotive Free Cash Flow |
$ | 2,195 | $ | 6,868 |
(a) | GMs automotive operations interest income and interest expense are recorded centrally in Corporate. |
(b) | GM Financial amounts represent earnings before income taxes adjusted. |
(c) | GMNA major recall campaign expense was $2.4B. |
(d) | Refer to the reconciliation of Net Income Attributable to Stockholders to EBIT-Adjusted. |
(e) | The tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction in which the adjustment relates. |
(f) | These adjustments primarily consist of the tax benefit related to the valuation allowance reversal in Europe. The adjustment was excluded because valuation allowance reversals are not considered part of our core operations. |
(g) | The Company adopted Accounting Standards Board Update 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash on a retrospective basis during 2016. |
17
GENERAL
INFORMATION
18 2016 CHAIRMANS LETTER
GENERAL MOTORS COMPANY
300 RENAISSANCE CENTER | DETROIT, MI 48265 | WWW.GM.COM