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Form 11-K GENERAL ELECTRIC CO For: Dec 31

June 21, 2016 8:35 AM EDT
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 11-K
 
 
Annual Report Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
                                                                                                 (Mark One)
☑  Annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934 (No Fee Required)
For the fiscal year ended December 31, 2015
OR
☐  Transition report pursuant to Section 15(d) of the Securities Exchange Act of 1934 (No Fee Required)
For the transition period from ___to ___
Commission file number 001-00035
A.   Full title of the plan and the address of the plan, if different from that of the issuer named below:
GE RETIREMENT SAVINGS PLAN
B.   Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
 
 

 
General Electric Company
3135 Easton Turnpike
Fairfield, Connecticut 06828-0001
 
 
 
 
 
 
 

 
-1-

GE RETIREMENT SAVINGS PLAN

Financial Statements and Supplemental Schedule
December 31, 2015 and 2014
(With Report of Independent Registered Public Accounting Firm Thereon)


 
 
Table of Contents

 
Page
Number(s)
   
 
Report of Independent Registered Public Accounting Firm
 
 
3
 
 
Financial Statements:
Statements of Net Assets Available for Plan Benefits
    as of December 31, 2015 and 2014
 
 
 
4
 
Statements of Changes in Net Assets Available for Plan Benefits
    for the Years Ended December 31, 2015 and 2014
 
 
5
 
   
 
Notes to Financial Statements
 
 
6 - 18
 
   
 
Supplemental Schedule: (i)
 
 
 
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)
    as of December 31, 2015
 
 
19 - 24
 
 
 
Exhibits:  
 23  Consent of Independent Registered Public Accounting Firm  
     
     
     
     
     
 
 
 
 
 
     



(i) Schedules required by Form 5500 that are not applicable have not been included.







Report of Independent Registered Public Accounting Firm
General Electric Company, as Administrator
GE Retirement Savings Plan:
We have audited the accompanying statements of net assets available for plan benefits of the GE Retirement Savings Plan (the Plan) as of December 31, 2015 and 2014, and the related statements of changes in net assets available for plan benefits for each of the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan as of December 31, 2015 and 2014, and the changes in net assets available for plan benefits for the years then ended, in conformity with U.S. generally accepted accounting principles.
The supplemental information in the accompanying schedule H, line 4i – schedule of assets (held at end of year) as of December 31, 2015, has been subjected to audit procedures performed in conjunction with the audit of the Plan's 2015 financial statements. The supplemental information is presented for the purpose of additional analysis and is not a required part of the financial statements but include supplemental information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental information is the responsibility of the Plan's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information in the accompanying schedule H, line 4i – schedule of assets (held at end of year) as of December 31, 2015, is fairly stated in all material respects in relation to the 2015 financial statements as a whole.
/s/KPMG LLP
Albany, New York
June 15, 2016
 
 
 
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GE RETIREMENT SAVINGS PLAN

Statements of Net Assets Available for Plan Benefits
December 31, 2015 and 2014
(in thousands)




         
   
2015
 
2014
 
Assets:
 
           
 
 
 
             
 
Investments at fair value (notes 3 and 4)
$
28,156,362
 
$
26,517,822
 
Notes receivable from participants
 
435,736
   
434,171
 
Employer contribution receivable
 
7,549
   
3,432
 
Accrued dividends and interest
 
84,221
   
89,517
 
Other assets
 
32,669
   
54,343
 
     Total assets
 
28,716,537
   
27,099,285
             
             
 
Liabilities:
 
 
 
 
 
             
 
Other liabilities
 
63,165
   
49,266
 
    Total liabilities
 
63,165
   
49,266
             
 
Net assets available for plan benefits
$
28,653,372
 
$
27,050,019
             


















See accompanying notes to financial statements.
- 4 -

 

GE RETIREMENT SAVINGS PLAN

Statements of Changes in Net Assets Available for Plan Benefits
Years Ended December 31, 2015 and 2014
(in thousands)





   
2015
 
2014
 
Additions to net assets attributed to:
 
           
 
 
 
 
    Investment income:
   
 
   
 
        Net appreciation (depreciation) in fair value of investments
$
1,323,101
 
$
(885,137)
 
        Interest and dividend income:
   
 
   
 
            Common stock
 
337,538
 
 
349,480
 
            Registered investment companies
 
617,406
 
 
756,497
 
            Other investments
 
13,828
 
 
9,295
     
2,291,873
 
 
230,135
       
 
   
 
    Interest on notes receivable from participants
 
18,562
 
 
18,937
       
 
   
 
    Contributions:
   
 
   
 
        Employee
 
1,131,091
 
 
1,090,534
 
        Employer
 
505,011
 
 
465,519
     
1,636,102
 
 
1,556,053
       
 
   
 
        Total additions
 
3,946,537
 
 
1,805,125
       
 
   
 
Deductions from net assets attributed to:
   
 
   
 
    Participant withdrawals
 
2,343,184
 
 
2,135,958
       
 
   
 
        Net increase (decrease)
 
1,603,353
 
 
(330,833)
             
 
Net assets available for plan benefits at:
   
 
   
 
    Beginning of year
 
27,050,019
 
 
27,380,852
 
    End of year
$
28,653,372
 
$
27,050,019
       
 
   








See accompanying notes to financial statements.
- 5 -

 
GE RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2015 and 2014


(1) Description of the Plan
The GE Retirement Savings Plan (the "Plan") is a defined contribution plan sponsored by General Electric Company ("the Company").
The Plan is subject to applicable provisions of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). The assets of the Plan are held in and invested through the GE Retirement Savings Trust (the "Trust").
Fidelity Investments is the Plan's recordkeeper.  The Plan Trustees (all of whom are officers of GE Asset Management Incorporated ("GEAM"), a wholly owned subsidiary of the Company) have appointed Fidelity Management Trust Company ("FMTC") as the directed Trustee of the Trust.
GEAM is the investment adviser to six of the Plan's investment options, which include actively managed funds in equity and fixed income asset classes. BlackRock Institutional Trust Company, N.A. ("BlackRock") is the investment adviser to six of the Plan's investment options, which include passively managed funds in equity and fixed income classes (collectively referred to herein as the "Index Funds").  AllianceBernstein, L.P. ("AllianceBernstein") is the investment adviser to the Plan's suite of thirteen Target Retirement Date Funds.  Evercore Trust Company, N.A. ("Evercore") is the independent fiduciary and investment manager for the Synchrony Stock Fund.  Effective July 15, 2014, State Street Global Advisors, a division of State Street Bank and Trust Company ("SSgA") became the investment manager for the GE RSP Government Money Market Fund, replacing GEAM.  State Street Bank and Trust Company is the custodian of all Plan assets except for the GE Stock Fund, the Synchrony Stock Fund, the Index Funds and the U.S. Bond Fund (as defined below). FMTC is the custodian of the GE Stock Fund and the Synchrony Stock Fund.  Blackrock is the custodian of the Index Funds.  The Federal Reserve Bank is the custodian of the United States Savings Bonds in the U.S. Bond Fund.

The following description of the Plan is provided for general information purposes only.  The complete terms of the Plan are provided in the GE Retirement Savings Plan document (the "Plan Document").  Additional Plan information including benefits, investment options, vesting provisions and effects of plan termination is included in Plan handbooks and other material distributed to participants.
Employee Contributions and Investment Options
Eligible employees of the Company and participating affiliates may participate in the Plan by investing up to 30% of their eligible earnings in one or more of the following investment options:
(a)
General Electric Common Stock Fund (the "GE Stock Fund") – The GE Stock Fund invests at least 98% of its assets in GE common stock, with the remainder held in cash or cash equivalents to provide for the GE Stock Fund's estimated liquidity needs.
(b)
GE RSP Income Fund (the "Income Fund") – The Income Fund managed by GEAM seeks a high interest rate of return over a long-term period consistent with the preservation of capital by investing at least 80% of its net assets in debt securities.
(c)
GE RSP U.S. Equity Fund (the "U.S. Equity Fund") – The U.S. Equity Fund managed by GEAM seeks long-term growth of capital and income by investing at least 80% of its net assets in equity securities of U.S. companies, such as common and preferred stocks.
(d)
GE Institutional International Equity Fund (the "International Fund") – The International Fund managed by GEAM seeks long-term growth of capital by investing at least 80% of its net assets in equity securities, such as common and preferred stocks.  The International Fund invests primarily in companies in both developed and emerging market countries outside the United States.
- 6 -

GE RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2015 and 2014

(e)
GE Institutional Small-Cap Equity Fund (the "Small-Cap Fund") – The Small-Cap Fund managed by GEAM seeks long-term growth of capital by investing at least 80% of its net assets in equity securities of smaller companies, such as common and preferred stocks.
(f)
GE Institutional Strategic Investment Fund (the "Strategic Investment Fund") – The Strategic Investment Fund managed by GEAM seeks maximum total return (total return includes both income and capital appreciation) by investing primarily in a combination of U.S. and Non-U.S. equity and debt securities and cash.
(g)
Non-U.S. Equity Index Fund – A collective investment trust maintained and managed by BlackRock that seeks investment results that correspond generally to the investment performance of the Morgan Stanley Capital International All Country World Index (MSCI ACWI) ex-U.S. Net Dividend Return Index by investing in a portfolio of international equity securities to approximate, as closely as practicable, the capitalization weighted total rates of return of the markets in certain countries for publicly traded equity securities.
(h)
U.S. Aggregate Bond Index Fund – A collective investment trust maintained and managed by BlackRock that seeks investment results that correspond generally to the investment performance of the Barclays U.S. Aggregate Bond Index by investing in a representative sample of securities that collectively has an investment profile similar to the index.
(i)
U.S. Large-Cap Equity Index Fund – A collective investment trust maintained and managed by BlackRock that seeks investment results that correspond generally to the investment performance of the S&P 500 Index by investing in large companies within the United States.
(j)
U.S. Mid-Cap Equity Index Fund – A collective investment trust maintained and managed by BlackRock that seeks investment results that correspond generally to the investment performance of the S&P Mid-Cap 400 Index by investing in medium-sized companies within the United States.
(k)
U.S. Small-Cap Equity Index Fund – A collective investment trust maintained and managed by BlackRock that seeks investment results that correspond generally to the investment performance of the Russell 2000 Index by investing in smaller companies within the United States.
(l)
U.S. Treasury Inflation-Protected Securities Index Fund (the "U.S. TIPS Index Fund") – A collective investment trust maintained and managed by BlackRock that seeks investment results that correspond generally to the investment performance of the Barclays U.S. Treasury Inflation-Protected Securities Index by investing in substantially all of the securities that make up the index.
(m)
GE RSP Short-Term Interest Fund (the "ST Interest Fund") – The ST Interest Fund managed by GEAM seeks to preserve principal and achieve a market-related interest rate of return by investing primarily in a variety of investment-grade debt securities, such as U.S. government securities, asset-backed securities, corporate bonds and money market instruments.
(n)
GE RSP Government Money Market Fund (the "Money Market Fund"), formerly GE RSP Money Market Fund – The Money Market Fund managed by SSgA seeks a high level of current income consistent with the preservation of capital and maintenance of liquidity by investing at least 99.5% of its net assets in short-term U.S. government securities, cash and/or repurchase agreements that are collateralized by cash or U.S. government securities.
(o)
United States Savings Bonds (the "U.S. Bond Fund") – The Savings Bonds available under this option are Series "EE" Savings Bonds issued by the U.S. Treasury.  The Savings Bonds mature 30 years after their issue date and earn interest based on market yields for Treasury securities.  Each May 1 and November 1, the U.S. Government sets the rates for the Savings Bonds that apply for the next six months.  Principal and accrued interest are credited when the Savings Bond is redeemed or on its maturity date.  Until a Plan participant has accumulated sufficient funds to purchase a Savings Bond, the amounts in the participant's account are invested in money market instruments and other short-term debt securities. Effective September 8, 2014, this option was closed to new investments.
- 7 -

GE RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2015 and 2014

 
(p)
Target Retirement Date Funds (the "TRD Funds") – The TRD Funds are daily valued separate accounts managed by AllianceBernstein.  The investment objective of each TRD Fund is to seek the highest total return (total return includes capital appreciation and income) over time consistent with an appropriate degree of risk, and a specified allocation among various types of assets.  To achieve its investment objective, each TRD Fund invests in a combination of underlying investment funds representing a variety of asset classes (the "Underlying Funds").  A TRD Fund's asset allocation changes over time and is expected to gradually shift from a combination of Underlying Funds that emphasizes investment in stocks to a combination of Underlying Funds that is more conservative and invests in bonds, stocks, and short-term investments.  Approximately 15 years after the target retirement date, the target asset allocation is expected to reach a "landing point" and become static. The suite of Target Retirement Date Funds includes the following:
Target Retirement Income Fund 
2025 Target Retirement Date Fund   
2050 Target Retirement Date Fund
2005 Target Retirement Date Fund
2030 Target Retirement Date Fund
2055 Target Retirement Date Fund
2010 Target Retirement Date Fund 
2035 Target Retirement Date Fund
2060 Target Retirement Date Fund
2015 Target Retirement Date Fund 
2040 Target Retirement Date Fund
 
2020 Target Retirement Date Fund          
2045 Target Retirement Date Fund 
 

(q)
Synchrony Stock Fund – The Synchrony Stock Fund was established on November 23, 2015 as a temporary investment option in connection with the Company's one-time offer in 2015 to exchange shares of Synchrony Financial common stock for shares of GE common stock.  The Synchrony Stock Fund is expected to invest at least 95% of its assets in Synchrony Financial common stock, with the remainder held in cash or cash equivalents to provide for the Synchrony Stock Fund's estimated liquidity needs.  This fund is closed to new investments and the terms of the Plan require that the Synchrony Stock Fund be liquidated as soon as reasonably practicable following the one-year anniversary of its establishment.  Upon liquidation, the Synchrony Stock Fund will be eliminated.
The GE Stock Fund, Income Fund, U.S Equity Fund, International Fund, Small-Cap Fund, Strategic Investment Fund, Index Funds, ST Interest Fund, Money Market Fund, U.S. Bond Fund, the TRD Funds and the Synchrony Stock Fund are collectively referred to herein as the "Funds".
The Income Fund, U.S. Equity Fund, International Fund, Small-Cap Fund and Strategic Investment Fund are registered investment companies subject to specific disclosure and other requirements.  The following Plan information is available to participants and eligible employees upon request or may be obtained online at the Plan's website: audited financial statements and prospectuses or other disclosure documents of the registered investment companies; fund profiles for the GE Stock Fund, ST Interest Fund, Money Market Fund, U.S. Bond Fund, Index Funds, TRD Funds and the Synchrony Stock Fund; and the GE Retirement Savings Plan Supplemental Information document containing certain information regarding all Funds. Certain of the above documents comprising this Plan information are also affirmatively provided to participants and eligible employees in compliance with the requirements of the Department of Labor.
The Plan permits participants to invest compensation on which income taxes have and have not been paid ("after-tax" and "pre-tax", respectively).  The United States Internal Revenue Code ("IRC") limits the amount of pre-tax contributions that can be made each year. The limit for participants under age 50 was generally $18,000 and $17,500 in 2015 and 2014, respectively. For participants who were at least age 50 during the year, the limit was generally $24,000 and $23,000 in 2015 and 2014, respectively. The Plan also permits participants to make Roth contributions, which are combined with pre-tax contributions for purposes of these limits.
Participants may switch their investment balances (including rebalancing) up to 12 times each quarter.  Restrictions on such switches include a prohibition against switching balances into the U.S. Bond Fund and the Synchrony Stock Fund and certain restrictions on a participant's ability to engage in frequent trading in response to Securities and Exchange Commission requirements governing mutual funds.
- 8 -

GE RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2015 and 2014

 
 
Employer Contributions
The Plan generally provides for employer matching contributions of 50% of employees' contributions of up to 7% of their earnings, that is, a 3.5% maximum matching contribution.  For certain eligible employees, whose first day of work was on or after January 1, 2005, such matching contributions are generally 50% of employees' contributions of up to 8% of earnings, that is, a 4% maximum matching contribution.
Certain eligible salaried employees (whose first day of work is on or after January 1, 2011) and certain eligible production employees (whose first day of work is on or after January 1, 2012) also receive a Company Retirement Contribution generally equal to 3% of their earnings, irrespective of any employee contributions.  Those production employees may also be eligible for an Additional Company Retirement Contribution ("ACRC") equal to $600 per year credited in the following January and a one-time additional $300 for a total of $900 credited in January 2016.  Hereinafter, the Company Retirement Contribution and the ACRC shall be referred to collectively as "Company Retirement Contributions" ("CRCs").  The CRCs are in addition to the employer matching contribution.  A participant who does not have a regular investment election on file will be electing to invest the CRCs in the TRD Fund consistent with the participant's age.
Effective January 1, 2014, the Plan was amended to automatically enroll current and newly hired non-union employees who are eligible for CRCs and who have not made an affirmative election regarding the amount (if any) of their own savings as electing to contribute 8% of eligible pay as pre-tax contributions. This election entitles these employees to the maximum 4% matching contribution. A participant who does not have a regular investment election on file will be electing to invest these contributions in the TRD Fund consistent with the participant's age. These elections can be changed at any time before or after the employee is automatically enrolled.

Rollovers and Transfers from Other Qualifying Plans
Subject to Company approval, participants may elect to rollover amounts from other qualifying plans or arrangements in accordance with the IRC.  For the years ended December 31, 2015 and 2014, transfers from other qualifying plans or arrangements were $85.7 million and $81.6 million, respectively, and are included in employee contributions in the statements of changes in net assets available for plan benefits.
Withdrawals
Subject to certain limitations prescribed by the Plan and the IRC, terminated participants may elect retirement or other termination withdrawals in either lump sum or partial payments.  Currently, employed participants may make up to seven withdrawals per year and certain hardship withdrawals from their participant accounts (except with respect to amounts attributable to any CRCs, which are not available for withdrawal during employment). Partial payments on termination are generally limited to four per year and a minimum of $500.
Notes Receivable from Participants
The Plan permits participants, under certain circumstances, to borrow a minimum of $500 from their participant accounts (except with respect to amounts attributable to any CRCs, which are not available for loans).  Subject to certain IRC and Plan limits, a participant may not borrow more than the lesser of 50% of that participant's available account value, as defined in the Plan Document, or $50,000, adjusted for prior loans. The term of any loan is up to 4.5 years unless the loan is used to acquire a principal residence for which a term of up to 15 years may be permissible.  The interest rate applicable to participant loans is based on the monthly average of the composite yield on corporate bonds, published by Moody's Investors Service.  Prior to December 2009, the interest rates of individual loans were fixed for the shorter of the term of the loan or five years. Effective December 2009, the interest rates for new loans are fixed for the term of the loan.
- 9 -

GE RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2015 and 2014

 
 
Loans are repaid with interest in equal payments over the term of the loan by payroll deductions, personal check, or other such methods as may be required.  Participants may repay the entire principal amount with written notice and without penalty.  Effective October 1, 2015, partial prepayments in amounts not less than the regular repayment amount are permissible without penalty and without re-amortization of the remaining principal amount.  A participant may have no more than two outstanding loans from the Plan at any time.
In the event of a loan default, the amount of the outstanding balance will be reported to the Internal Revenue Service in the year of the default as ordinary income.
Participant Accounts
Each participant's account is credited with the participant's contributions and CRCs (as applicable) and allocation of (a) employer matching contributions and (b) investment results.  The benefit to which a participant is entitled is the value of the participant's vested account.
Vesting
Participants are fully vested in their employee contributions, employer matching contributions and related investment results. Participants receiving CRCs and related earnings generally become vested in those amounts once the participant completes three years of service.
In connection with the Company's April 10, 2015 announcement of its plan to dispose of a predominant share of General Electric Capital Corporation and its subsidiaries, the Plan was amended to provide earlier vesting to certain participants who experience a layoff in connection with that plan.
Forfeitures
During 2015 and 2014, forfeitures of approximately $10.0 million and $8.3 million, respectively, were used to reduce employer contributions in accordance with the terms of the Plan.
Plan Termination and Amendment

Although the Company has not expressed any intent to do so, it has the right under the Plan, to the extent permitted by law, to discontinue its contributions and to terminate the Plan in accordance with the provisions of ERISA.  If the Plan is terminated, each participant's interest will be payable in full according to the Plan provisions.  The Company also has the right under the Plan, to the extent permitted by law, to amend or replace the Plan for any reason.
Administrative and Investment Advisory Costs
Administrative costs of the Plan and investment advisory costs for the GE Stock Fund, ST Interest Fund, the Money Market Fund and the Synchrony Stock Fund are generally borne by the Company.  For the registered investment companies, the Index Funds, and the TRD Funds, investment advisers receive a management fee for providing investment advisory services.  These management fees are reflected in interest and dividend income for the registered investment companies and in net appreciation in fair value of investments for the Index Funds and TRD Funds on the statements of changes in net assets available for plan benefits.
- 10 -

 
GE RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2015 and 2014


(2)            Summary of Significant Accounting Policies
(a)
Basis of Accounting
The accompanying financial statements have been prepared on the accrual basis of accounting.
(b) Investments
Plan investments are reported at fair value. See notes 3 and 4 for additional information.
Investment transactions are recorded on a trade date basis.  Dividends are recorded on the ex-dividend date.  Interest income is earned from settlement date and recognized on the accrual basis.  The net appreciation (depreciation) in the fair value of investments consists of the realized gains or losses on the sales of investments and the net unrealized appreciation (depreciation) of investments.
All portfolio securities of the Money Market Fund and any short-term money market instruments held by the ST Interest Fund with remaining maturities of sixty days or less at the time of purchase are valued on the basis of amortized cost, which approximates fair value.
More detailed information regarding these financial instruments, as well as the strategies and policies for their use, is contained in the documents described above under "Employee Contributions and Investment Options" in note 1.
(c) Fair Value Measurements
For financial assets and liabilities, fair value is the price the Plan would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for the identical assets and liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date.
Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Preference is given to observable inputs. These two types of inputs create the following fair value hierarchy:
Level 1 - Quoted prices for identical investments in active markets.

Level 2 - Quoted prices for similar investments in active markets; quoted prices for identical or similar investments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 - Significant inputs to the valuation model are unobservable.

The Company maintains policies and procedures to value investments using the best and most relevant data available. In addition, the Company retains independent pricing vendors to assist in valuing certain investments.

The following section describes the valuation methodologies used to measure investments at fair value.

When available, quoted market prices are used to determine the fair value of investment securities, and they are included in Level 1.  Level 1 securities include GE common stock, Synchrony Financial common stock, registered investment companies, certain short-term money market instruments, and U.S. Savings Bonds.

- 11 -

GE RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2015 and 2014

 
 
The Plan's ownership in the collective funds is carried at fair value based on the investment's net asset value per unit and is included in Level 2.

When quoted market prices are unobservable, pricing information is obtained from an independent pricing vendor.  The pricing vendor uses various pricing models for each asset class that are consistent with what other market participants would use.  The inputs and assumptions to the model of the pricing vendor are derived from market observable sources including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and other market-related data.  Since many fixed income securities do not trade on a daily basis, the methodology of the pricing vendor uses available information as applicable such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing.  The pricing vendor considers available market observable inputs in determining the evaluation for a security.  Thus, certain securities may not be priced using quoted prices, but rather determined from market observable information.  These investments are included in Level 2 and primarily comprise securities in the ST Interest Fund.

The Money Market Fund securities are typically valued on the basis of amortized cost which approximates fair value and these are included in Level 2. If it is determined that amortized cost does not approximate fair value, securities may be valued based on dealer supplied valuations or quotations.  In these infrequent circumstances, the pricing service may provide the Plan with valuations that are based on significant unobservable inputs, and in those circumstances, the investment securities are classified in Level 3.

Plan securities that are valued using techniques other than market quotations, particularly securities that are "fair valued," are subject to valuation risk.  The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

Annually, the Company conducts a review of the Plan's primary pricing vendor to validate that the inputs used in that vendor's pricing process are deemed to be market observable as defined in the standard. While the Company is not provided access to proprietary models of the vendor, the Company's review has included on-site walkthroughs of pricing processes, methodologies and control procedures for each asset class for which prices were provided. The Company's review also includes an examination of the underlying inputs and assumptions for a sample of individual securities across asset classes, credit rating levels and various durations. The Company believes that the prices received from the pricing vendor are representative of prices that would be received to sell the assets at the measurement date (exit price).

The Plan may use non-binding broker quotes as its primary basis for valuation when there is limited, or no, relevant market activity for a specific instrument or for other instruments that share similar characteristics.  The Company has not adjusted the prices obtained from the brokers. Investment securities priced using non-binding broker quotes are included in Level 3.  As is the case with the primary pricing vendor, third-party brokers do not provide access to their proprietary valuation models, inputs and assumptions.

- 12 -

GE RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2015 and 2014

(d) Notes Receivable from Participants
Loans to participants are recorded at the outstanding principal balance plus accrued interest.
(e) Participant Withdrawals
Participant withdrawals are recorded when paid.  Included in participant withdrawals are GE common stock cash dividends paid to participants of approximately $39.7 million and $41.8 million during 2015 and 2014, respectively.
(f) Management Estimates and Assumptions
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein, and disclosure of contingent assets and liabilities.  Actual results could differ from those estimates.

- 13 -

 
GE RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2015 and 2014


                 
(3)
Investments
           
                 
 
A summary of the fair value of the Plan's investments at December 31, 2015 and 2014 follows.
                 
         
2015
   
2014
                 
       
(in thousands) 
 
Common Stock:
         
 
    GE Common Stock
$
11,046,325    
 
$
9,611,376    
 
    Synchrony Financial Common Stock
 
19,240    
   
—    
 
        Total Common Stock
 
11,065,565    
   
9,611,376    
 
 
Registered Investment Companies:
         
 
    GE RSP Income Fund
 
1,856,666    
   
1,953,643    
 
    GE RSP U.S. Equity Fund
 
3,496,467    
   
3,856,381    
 
    GE Institutional International Equity Fund
 
1,151,000    
   
1,182,034    
 
    GE Institutional Small-Cap Equity Fund
 
1,101,531    
   
1,233,143    
 
    GE Institutional Strategic Investment Fund
 
595,930    
   
621,420    
 
        Total Registered Investment Companies
 
8,201,594    
   
8,846,621    
                 
 
Collective Funds:(a)
           
 
    Non-U.S. Equity Index Fund
 
844,833    
   
715,180    
 
    U.S. Aggregate Bond Index Fund
 
645,596    
   
526,829    
 
    U.S. Large-Cap Equity Index Fund
 
3,115,340    
   
2,831,061    
 
    U.S. Mid-Cap Equity Index Fund
 
902,028    
   
787,681    
 
    U.S. Small-Cap Equity Index Fund
 
576,135    
   
511,499    
 
    U.S. Treasury Inflation-Protected Securities Index Fund
 
281,070    
   
264,210    
 
        Total Collective Funds
 
6,365,002    
   
5,636,460    
                 
 
Other Investments:(a)
           
 
    Short-Term Money Market Instruments
 
326,215    
   
310,200    
 
    U.S. Treasury and U.S. Government Agency Debt Obligations
 
1,750,514    
   
1,801,151    
 
    Commercial Mortgage-Backed, Corporate Notes and Asset-Backed Securities
 
380,059    
   
221,777    
 
    U.S. Savings Bonds
 
67,413    
   
90,237    
 
        Total Other Investments
 
2,524,201    
   
2,423,365    
                 
 
              Total investments at fair value
$
28,156,362    
 
$
26,517,822    
                 
                 
 
(a)
Target Retirement Date Funds are separate accounts that invest in a combination of Index Funds and the Money Market Fund representing a variety of asset classes. See Note 1(p).
     
- 14 -

 
GE RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2015 and 2014




Investment securities, in general, are exposed to various risks, such as interest rate, credit and overall market volatility risk.  Due to the level of risk associated with certain investment securities, it is reasonable to expect that changes in the values of investment securities will occur (including in the near term) and that such changes could materially affect participant account balances and the statements of net assets available for plan benefits.  The Plan offers alternatives that may mitigate participant risks, including the opportunity to diversify investments across multiple participant-directed fund elections including active and passively managed funds covering multiple asset classes. Additionally, the investments within each participant-directed fund election are further diversified into various financial instruments, with the exception of the GE Stock Fund, the Synchrony Stock Fund and the U.S. Bond Fund, which primarily invest in securities of a single issuer.
Investments other than the GE Stock Fund, the Money Market Fund, the Synchrony Stock Fund and the U.S. Bond Fund may use various financial instruments such as options and futures, commonly referred to as derivatives, as a substitute for taking a long or a short position in an underlying asset, to increase returns, or as part of a hedging strategy.


- 15 -

 
GE RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2015 and 2014


                         
(4)
Fair Value Measurements
     
 
The Plan's investments measured at fair value on a recurring basis at December 31, 2015 follow.
                         
   
Level 1
 
Level 2
 
Level 3
 
Total
 
 
 
           
 
 
 
 
 
           
 
 
 
   
(in thousands) 
                         
 
Common Stock
$
11,065,565    
 
$
—   
 
$
—   
 
$
11,065,565    
 
Registered Investment Companies
 
8,201,594    
   
—   
   
—   
   
8,201,594    
 
Collective Funds
 
—   
   
6,365,002    
   
—   
   
6,365,002    
 
Other Investments:
                     
 
  Short-Term Money Market Instruments
 
1,117    
   
325,098    
   
—   
   
326,215    
 
  U.S. Treasury and U.S. Government  Agency Debt Obligations
—   
   
1,750,514    
   
—   
   
1,750,514    
 
  Commercial Mortgage-Backed, Corporate Notes and
                   
 
     Asset-Backed Securities
—   
   
380,059    
   
—   
   
380,059    
 
  U.S. Savings Bonds
 
67,413    
   
—   
   
—   
   
67,413    
 
          Total Other Investments
 
68,530    
   
2,455,671    
   
—   
   
2,524,201    
 
Total investments at fair value
$
19,335,689    
 
$
8,820,673    
 
$
—   
 
$
28,156,362    
                         
                         
 
The Plan's investments measured at fair value on a recurring basis at December 31, 2014 follow.
                         
   
Level 1
 
Level 2
 
Level 3
 
Total
 
 
 
           
 
 
 
 
 
           
 
 
 
   
(in thousands) 
                         
 
Common Stock
$
9,611,376    
 
$
—   
 
$
—   
 
$
9,611,376    
 
Registered Investment Companies
 
8,846,621    
   
—   
   
—   
   
8,846,621    
 
Collective Funds
 
—   
   
5,636,460    
   
—   
   
5,636,460    
 
Other Investments:
                     
 
  Short-Term Money Market Instruments
 
53,942    
   
256,258    
   
—   
   
310,200    
 
  U.S. Treasury and U.S. Government Agency Debt Obligations
—   
   
1,801,151    
   
—   
   
1,801,151    
 
  Commercial Mortgage-Backed, Corporate Notes and
                   
 
     Asset-Backed Securities
—   
   
221,777    
   
—   
   
221,777    
 
  U.S. Savings Bonds
 
90,237    
   
—   
   
—   
   
90,237    
 
          Total Other Investments
 
144,179    
   
2,279,186    
   
—   
   
2,423,365    
 
Total investments at fair value
$
18,602,176    
 
$
7,915,646    
 
$
—   
 
$
26,517,822    
                         
Transfers into and out of levels are considered to occur at the beginning of the period. There were no transfers between level one and level two during the years ended December 31, 2015 and 2014.

- 16 -

 
GE RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2015 and 2014




 (5)            Related Party Transactions (Parties-in-Interest)

The Plan's recordkeeper, trustees, investment advisors and custodians described in Note 1, as well as the Company and Plan participants, are each a "party in interest" to the Plan as defined by ERISA.  Parties in interest to the Plan are noted in the Schedule H, Line 4i - schedule of assets.  Any fees paid by the Plan with respect to those or other transactions are described in the GE Retirement Savings Plan Supplemental Information document.  KPMG LLP, the auditor of the Plan's financial statements, is also a party in interest.

 (6)            Tax Status

The Internal Revenue Service has notified the Company by a letter dated April 24, 2014, that the Plan is qualified under the appropriate sections of the IRC and that the related trust is tax-exempt.  Although the Plan has been amended and restated since receiving the determination letter, the Plan administrator and the Plan's counsel believe that the Plan's current design and operations comply in all material respects with the applicable requirements of the IRC, and that the letter remains valid.

The portion of a participant's compensation contributed to the Plan as a pre-tax contribution, the Company's matching contribution, and CRCs are not subject to Federal income tax when such contributions are credited to participant accounts, subject to certain limitations.  These amounts and any investment results may be included in the participant's gross taxable income for the year in which such amounts are withdrawn from the Plan.

U.S. generally accepted accounting principles require Plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) of the Plan if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service.  For the years ended December 31, 2015 and 2014, the Plan has not recognized a tax liability (or asset) related to uncertain tax positions.

The Plan is subject to routine audits by taxing jurisdictions, however, there are currently no audits for any tax periods in progress. The Plan administrator believes it is no longer subject to income tax examinations for years prior to 2012.

(7)            Subsequent Events

Subsequent events after the statement of net assets available for plan benefits date through June 15, 2016, the date that the financial statements were issued, have been evaluated in the preparation of these financial statements.

Effective January 1, 2016, the Plan was amended to automatically enroll current and newly hired union employees who are eligible for CRCs and who have not made an affirmative election regarding the amount (if any) of their own savings as electing to contribute 2% of eligible pay as pre-tax contributions. This election entitles these employees to a 1% matching contribution. A participant who does not have a regular investment election on file will be electing to invest these contributions in the TRD Fund consistent with the participant's age. These elections can be changed at any time before or after the employee is automatically enrolled.

On March 30, 2016, GE and State Street Corporation announced an agreement for State Street to acquire GEAM.  The investment objectives and policies of the funds will not change as a result of this transaction.





- 17 -

 
GE RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2015 and 2014




 (8) Reconciliation of Financial Statements to Form 5500

Notes receivable from participants are classified as investments per Form 5500 instructions. In addition, any deemed distributions are not considered to be plan assets per Form 5500 and are excluded from notes receivable from participants. However, these distributions remain a plan asset for purposes of these financial statements until a distributable event occurs and they are offset against plan assets.

A reconciliation of investments per the financial statements to the annual report filed on Form 5500, Schedule H as required by the Department of Labor follows.
             
     
2015
   
2014
   
(in thousands) 
             
 
Total investments per financial statements
$
28,156,362
 
$
26,517,822
             
 
Total notes receivable per financial statements
 
435,736
   
434,171
 
Deemed distributions
 
(9,282)
   
(9,162)
 
            Total notes receivable per Form 5500
 
426,454
   
425,009
             
 
Total investments per Form 5500
$
28,582,816
 
$
26,942,831

 
A reconciliation of total deductions from net assets per the financial statements to the annual report filed on Form 5500, Schedule H as required by the Department of Labor follows.

             
   
2015
 
2014
   
(in thousands)
             
 
Total deductions from net assets per financial statements
$
2,343,184
 
$
2,135,958
 
Deemed distributions offset against plan assets
 
(2,370)
   
(2,330)
 
New deemed distributions
 
2,490
   
2,743
 
Total expenses per Form 5500
$
2,343,304
 
$
2,136,371
- 18 -

 
GE RETIREMENT SAVINGS PLAN
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)*
As of December 31, 2015

                 
                 
                 
Description
     
Shares
   
Fair Value
 
Corporate Stocks - Common
               
GE Common Stock
     
354,617,188
 
$
11,046,325,391
(g)
Synchrony Financial Common Stock
     
632,679
   
19,239,768
 
Total Common Stock
           
11,065,565,159
 
                 
Registered Investment Companies
               
GE RSP Income Fund
     
163,438,857
   
1,856,665,420
(b) (g)
GE RSP U.S. Equity Fund
     
73,470,631
   
3,496,467,341
(b) (g)
GE Institutional International Equity Fund
     
97,957,473
   
1,151,000,308
(b) (g)
GE Institutional Small-Cap Equity Fund
     
70,116,555
   
1,101,531,084
(b) (g)
GE Institutional Strategic Investment Fund
     
52,137,381
   
595,930,269
(b) (g)
Total Registered Investment Companies
           
8,201,594,422
 
                 
Collective Funds
               
Non-U.S. Equity Index Fund
           
844,833,545
 
U.S. Aggregate Bond Index Fund
           
645,596,009
 
U.S. Large-Cap Equity Index Fund
           
3,115,339,870
 
U.S. Mid-Cap Equity Index Fund
           
902,027,992
 
U.S. Small-Cap Equity Index Fund
           
576,134,517
 
U.S. Treasury Inflation-Protected Securities Index Fund
           
281,069,727
 
Total Collective Funds
           
6,365,001,660
 
                 
Other Investments
               
 
Rate of Interest
   
Maturity
   
Fair Value
 
Short-Term Money Market Instruments
               
BNP Paribas Tri Party Repo
0.290
%
 
01/04/2016
 
$
105,000,000
 
BNP Paribas Tri Party Repo
0.300
   
01/04/2016
   
65,000,000
 
Merrill Lynch Tri Party Repo
0.290
   
01/04/2016
   
58,459,000
 
TD Securities USA Tri Party Repo
0.320
   
01/04/2016
   
90,000,000
 
State Street Treasury Plus Fund
0.170
   
12/31/2030
   
6,639,573
(c) (g) (i)
Fidelity Institutional Money Market Government Portfolio - Class I
           
1,116,828
(a) (g)
Total Short-Term Money Market Instruments
           
326,215,401
 
                 
U.S. Treasury and U.S. Government Agency Debt Obligations
               
Federal Farm Credit Banks
0.090
%
 
01/19/2016
   
3,799,829
(c)
Federal Farm Credit Banks
0.180
   
01/21/2016
   
1,399,860
(c)
Federal Farm Credit Banks
0.180
   
01/25/2016
   
1,499,820
(c)
Federal Farm Credit Banks
0.180
   
01/28/2016
   
2,499,663
(c)
Federal Farm Credit Banks
0.239
   
01/05/2016
   
7,000,000
(d)
Federal Farm Credit Banks
0.277
   
09/09/2016
   
4,800,048
(d)
Federal Farm Credit Banks
0.271
   
01/11/2016
   
8,000,000
(d)
Federal Farm Credit Banks
0.320
   
02/18/2016
   
8,999,895
(d)
Federal Farm Credit Banks
0.412
   
10/26/2016
   
8,800,000
(d)
Federal Home Loan Mortgage Corp
0.402
   
01/25/2016
   
10,800,000
(d)
Federal Home Loan Mortgage Corp
0.368
   
06/24/2016
   
27,000,000
(d)
Federal Home Loan Mortgage Corp
0.226
   
07/08/2016
   
13,000,000
(d)
Federal Home Loan Mortgage Corp
0.281
   
07/15/2016
   
21,000,000
(d)
Federal Home Loan Mortgage Corp
0.262
   
08/12/2016
   
23,600,000
(d)
Federal Home Loan Mortgage Corp
0.392
   
09/20/2016
   
12,100,000
(d)
Federal Home Loan Mortgage Corp
0.110
   
01/04/2016
   
13,499,882
(c)
Federal Home Loan Mortgage Corp
0.100
   
01/05/2016
   
8,899,906
(c)
Federal Home Loan Mortgage Corp
0.110
   
01/06/2016
   
59,999,079
(c)
Federal Home Loan Mortgage Corp
0.110
   
01/08/2016
   
49,198,948
(c)
Federal Home Loan Mortgage Corp
0.110
   
01/13/2016
   
55,997,920
(c)
Federal Home Loan Mortgage Corp
0.120
   
01/15/2016
   
46,997,898
(c)
Federal Home Loan Mortgage Corp
0.120
   
01/27/2016
   
23,497,912
(c)
Federal Home Loan Mortgage Corp
0.150
   
01/28/2016
   
7,299,206
(c)
Federal Home Loan Mortgage Corp
0.170
   
02/05/2016
   
19,996,772
(c)
Federal Home Loan Mortgage Corp
0.400
   
03/23/2016
   
34,968,271
(c)
Federal Home Loan Mortgage Corp
0.380
   
03/30/2016
   
29,972,188
(c)
Federal Home Loan Mortgage Corp
0.390
   
04/01/2016
   
34,967,489
(c)
Federal Home Loan Mortgage Corp
0.070
   
01/04/2016
   
2,599,979
(c)
Federal Home Loan Mortgage Corp
0.120
   
01/07/2016
   
29,999,400
(c)
Federal Home Loan Mortgage Corp
0.230
   
01/08/2016
   
9,999,553
(c)
Federal Home Loan Mortgage Corp
0.230
   
01/13/2016
   
9,999,233
(c)
Federal Home Loan Mortgage Corp
0.090
   
01/14/2016
   
36,198,824
(c)
Federal Home Loan Mortgage Corp
0.090
   
01/15/2016
   
23,148,659
(c)
Federal Home Loan Mortgage Corp
0.090
   
01/20/2016
   
42,697,958
(c)
 
See accompanying notes to schedule of assets on page 24.
- 19 -

GE RETIREMENT SAVINGS PLAN
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)*
As of December 31, 2015
                 
Other Investments, continued
               
Description
Rate of Interest
   
Maturity
   
Fair Value
 
U.S. Treasury and U.S. Government Agency Debt Obligations
               
Federal Home Loan Mortgage Corp
0.070
%
 
01/25/2016
 
$
2,599,879
(c)
Federal Home Loan Mortgage Corp
0.180
   
02/09/2016
   
12,247,678
(c)
Federal Home Loan Mortgage Corp
0.140
   
02/11/2016
   
13,097,986
(c)
Federal Home Loan Mortgage Corp
0.200
   
02/17/2016
   
21,994,256
(c)
Federal Home Loan Mortgage Corp
0.270
   
02/26/2016
   
27,588,451
(c)
Federal Home Loan Mortgage Corp
0.150
   
03/04/2016
   
10,697,191
(c)
Federal Home Loan Mortgage Corp
0.440
   
03/08/2016
   
15,987,196
(c)
Federal Home Loan Mortgage Corp
0.230
   
03/09/2016
   
35,884,403
(c)
Federal Home Loan Mortgage Corp
0.280
   
03/14/2016
   
17,590,007
(c)
Federal Home Loan Mortgage Corp
0.460
   
04/11/2016
   
15,979,800
(c)
Federal Home Loan Mortgage Corp
0.296
   
08/17/2016
   
13,500,000
(d)
Federal Home Loan Mortgage Corp
0.373
   
08/24/2016
   
14,250,000
(d)
Federal Home Loan Mortgage Corp
7.000
   
11/01/2031
   
22,809
 
Federal Home Loan Mortgage Corp
7.000
   
04/01/2032
   
331,539
 
Federal Home Loan Mortgage Corp
7.000
   
04/01/2032
   
243,532
 
Federal Home Loan Mortgage Corp
7.000
   
06/01/2032
   
42,145
 
Federal Home Loan Mortgage Corp
7.500
   
01/01/2027
   
19,340
 
Federal Home Loan Mortgage Corp
7.000
   
04/01/2036
   
169,929
 
Federal Home Loan Mortgage Corp
8.500
   
03/01/2027
   
6,097
 
Federal Home Loan Mortgage Corp
8.000
   
05/01/2031
   
25,888
 
Federal Home Loan Mortgage Corp
7.500
   
01/01/2027
   
158,188
 
Federal Home Loan Mortgage Corp
1.281
   
12/15/2031
   
564,825
(d)
Federal Home Loan Mortgage Corp
9.250
   
12/01/2016
   
3,227
 
Federal National Mortgage Assoc.
0.090
   
01/06/2016
   
15,399,808
 
Federal National Mortgage Assoc.
0.090
   
01/08/2016
   
9,899,827
 
Federal National Mortgage Assoc.
0.080
   
01/13/2016
   
5,599,854
 
Federal National Mortgage Assoc.
0.080
   
01/20/2016
   
11,899,498
 
Federal National Mortgage Assoc.
0.060
   
01/27/2016
   
2,499,892
 
Federal National Mortgage Assoc.
0.070
   
02/03/2016
   
3,649,783
 
Federal National Mortgage Assoc.
0.150
   
02/17/2016
   
6,998,629
 
Federal National Mortgage Assoc.
0.200
   
02/24/2016
   
10,246,925
 
Federal National Mortgage Assoc.
0.410
   
03/16/2016
   
11,990,000
 
Federal National Mortgage Assoc.
0.360
   
03/23/2016
   
27,977,678
 
Federal National Mortgage Assoc.
0.340
   
03/30/2016
   
5,995,031
 
Federal National Mortgage Assoc.
0.390
   
04/06/2016
   
16,982,773
 
Federal National Mortgage Assoc.
7.500
   
05/01/2026
   
10,166
 
Federal National Mortgage Assoc.
7.500
   
01/01/2025
   
99,540
 
Federal National Mortgage Assoc.
7.500
   
11/01/2021
   
14,489
 
Federal National Mortgage Assoc.
7.000
   
03/01/2029
   
46,628
 
Federal National Mortgage Assoc.
2.406
   
07/01/2033
   
771,333
(d)
Federal National Mortgage Assoc.
7.500
   
02/01/2031
   
114,303
 
Federal National Mortgage Assoc.
7.500
   
04/01/2016
   
670
 
Federal National Mortgage Assoc.
7.000
   
06/01/2031
   
14,728
 
Federal National Mortgage Assoc.
7.500
   
07/01/2027
   
37,572
 
Federal National Mortgage Assoc.
7.000
   
10/01/2031
   
249,364
 
Federal National Mortgage Assoc.
7.500
   
04/01/2032
   
73,308
 
Federal National Mortgage Assoc.
7.000
   
02/01/2017
   
10,799
 
Federal National Mortgage Assoc.
7.000
   
03/01/2017
   
6,942
 
Federal National Mortgage Assoc.
7.000
   
03/01/2017
   
3,199
 
Federal National Mortgage Assoc.
8.500
   
08/01/2030
   
11,561
 
Federal National Mortgage Assoc.
8.000
   
05/01/2032
   
26,817
 
Federal National Mortgage Assoc.
7.000
   
04/01/2017
   
4,021
 
Federal National Mortgage Assoc.
7.500
   
06/01/2032
   
80,951
 
Federal National Mortgage Assoc.
7.000
   
04/01/2017
   
5,917
 
Federal National Mortgage Assoc.
7.000
   
03/01/2017
   
8,321
 
Federal National Mortgage Assoc.
7.000
   
05/01/2017
   
13,228
 
Federal National Mortgage Assoc.
8.000
   
03/01/2032
   
74,127
 
Federal National Mortgage Assoc.
7.000
   
07/01/2017
   
14,795
 
Federal National Mortgage Assoc.
7.000
   
07/01/2017
   
23,485
 
Federal National Mortgage Assoc.
2.702
   
06/01/2033
   
317,647
(d)
Federal National Mortgage Assoc.
2.866
   
06/01/2033
   
142,628
(d)
Federal National Mortgage Assoc.
9.500
   
09/01/2021
   
4,959
 
Federal National Mortgage Assoc.
7.000
   
05/01/2017
   
13,728
 
Federal National Mortgage Assoc.
0.100
   
05/25/2018
   
1,276
(d) (e)
Federal National Mortgage Assoc.
4.500
   
02/25/2040
   
3,664,018
 
Federal National Mortgage Assoc.
7.500
   
10/01/2030
   
24,931
 
Federal National Mortgage Assoc.
2.512
   
12/01/2032
   
315,559
(d)
                 
 
See accompanying notes to schedule of assets on page 24.
- 20 -

GE RETIREMENT SAVINGS PLAN
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)*
As of December 31, 2015
                 
Other Investments, continued
               
Description
Rate of Interest
   
Maturity
   
Fair Value
 
U.S. Treasury and U.S. Government Agency Debt Obligations
               
Federal National Mortgage Assoc.
1.913
%
 
05/01/2033
 
$
657,432
(d)
Federal National Mortgage Assoc.
2.165
   
06/01/2033
   
854,192
(d)
Federal National Mortgage Assoc.
2.192
   
05/01/2033
   
43,043
(d)
Federal National Mortgage Assoc.
2.515
   
06/01/2033
   
5,766
(d)
Federal National Mortgage Assoc.
2.379
   
06/01/2033
   
714,356
(d)
Federal National Mortgage Assoc.
7.000
   
04/01/2033
   
117,679
 
Federal National Mortgage Assoc.
7.500
   
04/01/2033
   
46,854
 
Federal National Mortgage Assoc.
2.338
   
07/01/2033
   
590,057
(d)
Federal National Mortgage Assoc.
7.500
   
11/01/2033
   
26,566
 
Federal National Mortgage Assoc.
8.000
   
11/01/2033
   
32,433
 
Federal National Mortgage Assoc.
7.000
   
11/01/2033
   
246,467
 
Federal National Mortgage Assoc.
7.500
   
03/01/2034
   
161,730
 
Federal National Mortgage Assoc.
7.000
   
03/01/2034
   
19,610
 
Federal National Mortgage Assoc.
7.000
   
06/01/2034
   
39,120
 
Federal National Mortgage Assoc.
7.500
   
05/01/2034
   
57,102
 
Federal National Mortgage Assoc.
8.500
   
08/01/2029
   
38,858
 
Federal National Mortgage Assoc.
7.000
   
01/01/2035
   
142,624
 
Federal National Mortgage Assoc.
7.000
   
01/01/2036
   
244,933
 
Federal National Mortgage Assoc.
7.000
   
05/01/2035
   
83,487
 
Federal National Mortgage Assoc.
7.000
   
05/01/2035
   
217,005
 
Federal National Mortgage Assoc.
7.000
   
04/01/2036
   
107,410
 
Federal National Mortgage Assoc.
2.935
   
06/01/2044
   
52,761,903
(d)
Government National Mortgage Assoc.
7.000
   
05/15/2032
   
115,496
 
Government National Mortgage Assoc.
7.000
   
11/15/2032
   
40,132
 
Government National Mortgage Assoc.
7.000
   
03/15/2031
   
79,230
 
Government National Mortgage Assoc.
7.500
   
05/15/2031
   
38,118
 
Government National Mortgage Assoc.
7.500
   
03/15/2031
   
14,285
 
Government National Mortgage Assoc.
7.500
   
01/15/2031
   
165,847
 
Government National Mortgage Assoc.
7.500
   
01/15/2031
   
44,855
 
Government National Mortgage Assoc.
7.500
   
09/15/2031
   
151,682
 
Government National Mortgage Assoc.
7.500
   
07/15/2031
   
97,934
 
Government National Mortgage Assoc.
9.000
   
11/15/2017
   
4,574
 
Government National Mortgage Assoc.
7.000
   
12/15/2018
   
25,688
 
Government National Mortgage Assoc.
7.500
   
12/15/2018
   
68,194
 
Government National Mortgage Assoc.
7.000
   
11/15/2023
   
146,703
 
U.S. Treasury Bills
0.060
   
01/07/2016
   
65,999,494
 
U.S. Treasury Bills
0.120
   
02/04/2016
   
49,994,554
(c)
U.S. Treasury Bills
0.070
   
01/14/2016
   
99,997,431
(c)
U.S. Treasury Bills
0.060
   
01/21/2016
   
9,999,944
(c)
U.S. Treasury Bills
0.140
   
02/11/2016
   
49,992,313
(c)
U.S. Treasury Bills
0.150
   
02/18/2016
   
49,990,333
(c)
U.S. Treasury Bills
0.140
   
02/25/2016
   
37,991,872
(c)
U.S. Treasury Notes
2.500
   
02/15/2045
   
3,246,609
 
U.S. Treasury Notes
0.500
   
04/30/2017
   
144,527,998
 
U.S. Treasury Notes
2.000
   
08/15/2025
   
19,487,980
 
U.S. Treasury Notes
0.875
   
10/15/2018
   
52,127,536
 
U.S. Treasury Notes
1.375
   
10/31/2020
   
21,363,233
 
U.S. Treasury Notes
1.875
   
10/31/2022
   
11,312,195
(f)
U.S. Treasury Notes
0.625
   
09/30/2017
   
43,697,764
 
Total U.S. Treasury and U.S. Government Agency Debt Obligations
           
1,750,513,887
 
                 
Commercial Mortgage-Backed, Corporate Notes and Asset-Backed Securities
               
Abengoa Finance
8.875
   
11/01/2017
   
147,500
(h)
Abengoa Finance
7.750
   
02/01/2020
   
138,750
(h)
Abengoa Greenfield
6.500
   
10/01/2019
   
110,000
(h)
Actavis Funding SCS
2.350
   
03/12/2018
   
10,011,990
 
American Express
2.375
   
05/26/2020
   
9,927,230
 
Anadarko Petrolium Corp
6.375
   
09/15/2017
   
524,301
 
Anheuser Busch
1.250
   
01/17/2018
   
990,651
 
Apple Inc
2.850
   
05/06/2021
   
5,122,810
 
ATT Inc
1.700
   
06/01/2017
   
2,005,480
 
Bank of America NA
1.750
   
06/05/2018
   
9,943,780
 
Baxalta Inc
2.000
   
06/22/2018
   
7,918,024
(h)
BHMS Mortgage
1.769
   
07/05/2033
   
25,002,445
(d) (h)
Capital One NA
2.350
   
08/17/2018
   
2,505,153
 
CCO Safari II LLC
3.579
   
07/23/2020
   
2,485,680
(h)
CD Commercial Mtg
5.366
   
12/11/2049
   
8,165,089
(d)
Celgene Corp
2.125
   
08/15/2018
   
7,001,659
 
Chevron Corp
1.961
   
03/03/2020
   
4,929,145
 
                 
 
See accompanying notes to schedule of assets on page 24.
- 21 -

GE RETIREMENT SAVINGS PLAN
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)*
As of December 31, 2015
                 
Other Investments, continued
               
Description
Rate of Interest
   
Maturity
   
Fair Value
 
Commercial Mortgage-Backed, Corporate Notes and Asset-Backed Securities
               
Citigroup Commercial Mtg
1.081
%
 
06/15/2033
 
$
36,615,396
(d) (h)
Citigroup Commercial Mtg
1.381
   
06/15/2033
   
27,356,151
(d) (h)
Citigroup Inc
2.050
   
12/07/2018
   
4,973,480
 
Comcast Corp
5.700
   
05/15/2018
   
1,093,193
 
Comm Mtg Trust
1.201
   
06/11/2027
   
49,419,815
(d) (h)
CVS Health Corp
1.900
   
07/20/2018
   
6,996,395
 
Danaher Corp
1.650
   
09/15/2018
   
6,997,200
 
Directtv Holdings
1.750
   
01/15/2018
   
498,060
 
Discoverer Bank
2.600
   
11/13/2018
   
2,498,508
 
Eastman Chemical
2.400
   
06/01/2017
   
1,005,496
 
Energy Transfer Partners
2.500
   
06/15/2018
   
4,787,625
 
Freeport Mcmoran Inc
2.150
   
03/01/2017
   
915,000
 
General Motors Co
3.500
   
10/02/2018
   
3,030,120
 
General Motors Co
3.200
   
07/13/2020
   
4,923,005
 
Gilead Sciences Inc
1.850
   
09/04/2018
   
7,031,808
 
Hintington National bank
2.200
   
11/06/2018
   
4,986,820
 
ING Bank NV
2.450
   
03/16/2020
   
9,972,590
(h)
Invitation Homes Trust
1.451
   
09/17/2031
   
7,361,163
(d) (h)
JP Morgan
5.565
   
04/15/2043
   
7,025,555
(d)
JP Morgan
5.953
   
02/15/2051
   
17,998,960
(d)
Kraft Heinz
2.000
   
07/02/2018
   
9,964,260
(h)
Lockheed Martin Corp
1.850
   
11/23/2018
   
4,991,815
 
Mcdonald Corp
2.100
   
12/07/2018
   
5,004,070
 
Medtronic Inc
1.375
   
04/01/2018
   
994,796
 
Morgan Stanley
5.783
   
10/15/2042
   
4,002,904
(d)
Oracle Corp
1.200
   
10/15/2017
   
1,000,580
 
Pepsico Inc
1.250
   
04/30/2018
   
498,208
 
Pepsico Inc
1.000
   
10/13/2017
   
4,974,355
 
Philip Morris Intl
1.250
   
08/11/2017
   
8,012,352
 
Rio Tinto Fin
1.625
   
08/21/2017
   
492,848
 
Shell International Fin
1.625
   
11/10/2018
   
4,973,260
 
Tech Resources Ltd
2.500
   
02/01/2018
   
380,000
 
Toronto Dominion Bank
1.750
   
07/23/2018
   
4,993,545
 
Unitedhealth Group Inc
1.900
   
07/16/2018
   
10,032,240
 
Vendee Mtg
0.127
   
10/15/2026
   
65,996
(d) (e)
Verizon Communications
1.350
   
06/09/2017
   
1,994,306
 
Volkswagen Group
2.400
   
05/22/2020
   
4,682,260
(h)
Wachovia Bank
5.660
   
04/15/2047
   
9,091,099
(d)
Walt Disney
1.100
   
12/01/2017
   
996,931
 
Zimmer Biomet Holdings
2.000
   
04/01/2018
   
496,973
 
Total Commercial Mortgage-Backed, Corporate Notes and Asset-Backed Securities
           
380,058,825
 
                 
U.S. Savings Bonds
     
Units
   
Fair Value
 
1984 U.S. SAVINGS BOND EE SERIES
     
6
 
$
1,384
 
1985 U.S. SAVINGS BOND EE SERIES
     
24
   
5,535
 
1986 U.S. SAVINGS BOND EE SERIES
     
26,567
   
5,851,826
 
1987 U.S. SAVINGS BOND EE SERIES
     
27,285
   
5,277,015
 
1988 U.S. SAVINGS BOND EE SERIES
     
30,247
   
5,624,793
 
1989 U.S. SAVINGS BOND EE SERIES
     
42,345
   
7,568,165
 
1990 U.S. SAVINGS BOND EE SERIES
     
43,699
   
7,502,676
 
1991 U.S. SAVINGS BOND EE SERIES
     
44,491
   
7,348,204
 
1992 U.S. SAVINGS BOND EE SERIES
     
65,693
   
10,416,913
 
1993 U.S. SAVINGS BOND EE SERIES
     
44,230
   
5,624,045
 
1994 U.S. SAVINGS BOND EE SERIES
     
37,658
   
4,414,595
 
1995 U.S. SAVINGS BOND EE SERIES
     
11,229
   
1,243,390
 
1996 U.S. SAVINGS BOND EE SERIES
     
72
   
7,371
 
1997 U.S. SAVINGS BOND EE SERIES
     
106
   
10,792
 
1998 U.S. SAVINGS BOND EE SERIES
     
177
   
17,784
 
1999 U.S. SAVINGS BOND EE SERIES
     
321
   
25,777
 
2000 U.S. SAVINGS BOND EE SERIES
     
405
   
30,911
 
2001 U.S. SAVINGS BOND EE SERIES
     
545
   
39,462
 
2002 U.S. SAVINGS BOND EE SERIES
     
570
   
39,493
 
2003 U.S. SAVINGS BOND EE SERIES
     
1,046
   
70,090
 
2004 U.S. SAVINGS BOND EE SERIES
     
1,530
   
99,573
 
2005 U.S. SAVINGS BOND EE SERIES
     
1,830
   
126,700
 
2006 U.S. SAVINGS BOND EE SERIES
     
2,645
   
183,862
 
2007 U.S. SAVINGS BOND EE SERIES
     
4,094
   
272,382
 
2008 U.S. SAVINGS BOND EE SERIES
     
4,636
   
268,060
 
2009 U.S. SAVINGS BOND EE SERIES
     
7,804
   
414,692
 
                 
 
See accompanying notes to schedule of assets on page 24.
- 22 -

GE RETIREMENT SAVINGS PLAN
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)*
As of December 31, 2015
                 
Other Investments, continued
               
Description
     
Units
   
Fair Value
 
U.S. Savings Bonds
               
2010 U.S. SAVINGS BOND EE SERIES
     
12,307
 
$
658,930
 
2011 U.S. SAVINGS BOND EE SERIES
     
11,002
   
570,710
 
2012 U.S. SAVINGS BOND EE SERIES
     
10,868
   
553,866
 
2013 U.S. SAVINGS BOND EE SERIES
     
16,632
   
834,556
 
2014 U.S. SAVINGS BOND EE SERIES
     
18,358
   
921,605
 
2015 U.S. SAVINGS BOND EE SERIES
     
27,748
   
1,387,400
 
Total U.S. Savings Bonds
           
67,412,557
 
                 
Total Other Investments
           
2,524,200,670
 
                 
            Total Investments
           
28,156,361,911
 
                 
Notes Receivable from Participants
Rate of Interest
   
Maturity
   
Fair Value
 
                 
Various (74,761 notes receivable)
3.84 - 9.26%
   
1 month - 15 years
 
$
426,454,421
(g)
                 
Total Notes Receivable from Participants
           
426,454,421
 
                 
Total Assets (Held at End of Year)
         
$
28,582,816,332
 
                 


See accompanying Report of Independent Registered Public Accounting Firm.

See accompanying notes to schedule of assets on page 24.
- 23 -

GE RETIREMENT SAVINGS PLAN
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)*
As of December 31, 2015
 
 
   
   
Notes to Schedule of Assets:
   
(a)
Funds managed by an affiliate of Fidelity Management Trust Company (FMTC).
(b)
Funds managed by GEAM, a wholly owned subsidiary of the Company.
(c)
Coupon amount represents effective yield.
(d)
Variable or floating rate of security. The stated rate represents the rate at December 31, 2015.
(e)
Interest only security. These securities represent the right to receive the monthly interest payments on an underlying pool of mortgages. Payments of principal on the pool reduce the value of the "interest only" holding.
(f)
At December 31, 2015, a portion of this security was pledged to cover collateral requirements for futures.
(g)
Represents a party-in-interest to the Plan.
(h)
Pursuant to Rule 144A of the Securities Act of 1933, as amended, these securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2015, these securities amounted to $181,174,034 or 24.13% of the net assets of the GE RSP Short Term Interest Fund. These securities have been determined to be liquid using procedures established by the Fund's Board of Trustees.
(i)
Sponsored by SSgA Funds Management, Inc., an affiliate of State Street Bank & Trust Co., the Fund's sub-administrator, custodian and accounting agent.
   
*
Cost omitted for participant directed investments.
- 24 -

 


Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

   
GE Retirement Savings Plan
 
 
 
June 15, 2016
 
/s/ Jan R. Hauser
 
Date
 
Jan R. Hauser
Vice President and Controller
General Electric Company
 
 

Exhibit 23
Consent of Independent Registered Public Accounting Firm
General Electric Company, as Administrator
GE Retirement Savings Plan:
We consent to the incorporation by reference in the registration statements (Nos. 3347500, 33323767, 33396287, 33399671, 333155585, 333158071, 333177805 and 333194243) on Forms S8 of General Electric Company of our report dated June 15, 2016, with respect to the statements of net assets available for plan benefits of the GE Retirement Savings Plan as of December 31, 2015 and 2014, the related statements of changes in net assets available for plan benefits for the years then ended, and the supplemental schedule H, line 4i – schedule of assets (held at end of year) as of December 31, 2015, which report appears in the December 31, 2015 annual report on Form 11K of the GE Retirement Savings Plan.
/s/KPMG LLP
Albany, New York
June 15, 2016


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