Annual Report 2020

(1) Operating Income Margin and Diluted earnings per share have been reported on an adjusted basis to exclude certain non-operational and non-cash expenses in 2020, 2019 and 2018, including General Parts International, Inc. (“GPI”) integration and store closure and consolidation expenses, GPI amortization of acquired intangible assets, transformation expenses, make-whole provisions, tender premiums and debt issuance costs resulting from the early redemption of our 2023, 2022 and 2020 senior unsecured notes, an out-of-period correction and the net impact of the Tax Cuts and Jobs Act. A reconciliation of the adjusted financial results to the most comparable GAAP results for 2020 and 2019 can be found on pages 22 and 23 of “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Form 10-K included within our 2020 Annual Report. A reconciliation of the adjusted financial results to the most comparable GAAP results for 2018 can be found on pages 18 and 21 of “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Form 10-K included within our 2019 Annual Report. (2) Free cash flow is a non-GAAP measure and should be considered in addition to, but not as a substitute for, information contained in our “Consolidated Statements of Cash Flows” that can be found on page 39 in our Form 10-K included within our 2020 Annual Report. Free cash flow of $702 million, $597 million and $617 million can be reconciled to net cash provided by operating activities on a GAAP basis of $970 million, $867 million and $811 million by adding back purchases of property and equipment of $268 million, $270 million and $194 million.