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January 22, 2016 8:10 AM EST

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) January 22, 2016
 
 
General Electric Company
  
 
(Exact name of registrant as specified in its charter)
  
 
New York
  
001-00035
  
14-0689340
(State or other jurisdiction
 of incorporation)
  
(Commission
 File Number)
  
(IRS Employer
 Identification No.)
   
 
    
3135 Easton Turnpike, Fairfield, Connecticut
      
06828-0001
(Address of principal executive offices)
      
(Zip Code)
   
 
    
Registrant's telephone number, including area code   (203) 373-2211
 
     
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 

Item 2.02 Results of Operations and Financial Condition.
On January 22, 2016, General Electric Company (the "Company") released its fourth-quarter 2015 financial results on its investor relations website at www.ge.com/investor. A copy of these is attached as Exhibit 99 and incorporated by reference herein.

Except as indicated below, the information provided pursuant to this Item 2.02, including Exhibit 99, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act. The information set forth in Exhibit 99 under the headings "Condensed Statement of Earnings (Loss) (Unaudited)," "Summary of Operating Segments (Unaudited)," "Summary of Operating Segments Additional Information (Unaudited)" and "Condensed Statement of Financial Position (Unaudited)" is being filed.

Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The following exhibit is being furnished (except for those portions that are deemed "filed" as indicated above) as part of this report:

Exhibit Description

99      Fourth-quarter 2015 financial results released on General Electric Company's website on January 22, 2016.

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

   
General Electric Company
  
   
(Registrant)
  
   
 
 
 
  
Date: January 22, 2016
  
/s/ Jan R. Hauser
  
   
Jan R. Hauser
Vice President and Controller
  

 


 Exhibit 99
 
 
 
 
 
 
 
 
GENERAL ELECTRIC COMPANY
                                          
CONDENSED STATEMENT OF EARNINGS (LOSS) (UNAUDITED)
                      
                                           
 
Consolidated
    
GE(a)
      
Financial Services (GE Capital)
Three months ended December 31
2015
2014
  
V%
    
2015
2014
  
V%
  
2015
2014
  
V%
                                           
Revenues and other income
                                          
Sales of goods and services
$
30,543
$
30,921
  
 (1)%
    
$
30,614
$
31,046
  
 (1)%
  
$
15
$
31
  
(52)%
Other income
  
1,135
  
(15)
          
1,143
  
17
        
-
  
-
    
GE Capital earnings from continuing operations
  
-
  
-
          
(1,465)
  
348
        
-
  
-
    
GE Capital revenues from services
  
2,214
  
2,506
          
-
  
-
        
2,570
  
2,888
    
   Total revenues and other income
  
33,892
  
33,412
  
1%
      
30,292
  
31,412
  
(4)%
    
2,585
  
2,919
  
(11)%
Costs and expenses
                                          
Cost of sales
  
23,584
  
23,659
          
23,058
  
23,176
        
612
  
640
    
Interest and other financial charges
  
1,235
  
646
          
463
  
437
        
953
  
352
    
Selling, general and administrative expenses
  
4,772
  
4,200
          
3,878
  
3,617
        
1,053
  
814
    
Investment contracts, insurance losses and
                                          
   insurance annuity benefits
  
663
  
603
          
-
  
-
        
676
  
632
    
Other costs and expenses
  
1,735
  
425
          
-
  
-
        
1,744
  
436
    
   Total costs and expenses
  
31,989
  
29,534
  
 8 %
      
27,399
  
27,230
  
1%
    
5,039
  
2,874
  
75%
Earnings (loss) from continuing operations
                                          
   before income taxes
  
1,903
  
3,878
  
(51)%
      
2,892
  
4,181
  
(31)%
    
(2,454)
  
45
  
U
Benefit (provision) for income taxes
  
742
  
(188)
          
(204)
  
(492)
        
946
  
303
    
Earnings (loss) from continuing operations
  
2,645
  
3,690
  
 (28)%
      
2,688
  
3,690
  
(27)%
    
(1,508)
  
348
  
U
Earnings (loss) from discontinued
                                          
   operations, net of taxes
  
3,758
  
1,649
          
3,716
  
1,563
        
3,764
  
1,650
    
Net earnings
  
6,403
  
5,339
  
20%
      
6,404
  
5,253
  
22%
    
2,257
  
1,998
  
13%
Less net earnings (loss) attributable to
                                          
   noncontrolling interests
  
103
  
187
          
121
  
101
        
(19)
  
86
    
Net earnings attributable
                                          
   to the Company
  
6,301
  
5,152
  
22%
      
6,283
  
5,152
  
22%
    
2,275
  
1,912
  
19%
Preferred stock dividends declared
  
(18)
  
-
          
-
  
-
        
(169)
  
(161)
    
Net earnings attributable to
                                          
   GE common shareowners
$
6,283
$
5,152
  
22%
    
$
6,283
$
5,152
  
22%
  
$
2,107
$
1,751
  
20%
Amounts attributable to GE common
                                          
   shareowners:
                                          
   Earnings (loss) from continuing operations
$
2,645
$
3,690
  
 (28)%
    
$
2,688
$
3,690
  
(27)%
  
$
(1,508)
$
348
  
U
   Less net earnings (loss) attributable
                                          
     to noncontrolling interests, continuing operations
  
60
  
101
          
121
  
101
        
(61)
  
-
    
   Earnings (loss) from continuing operations
                                          
     attributable to the Company
  
2,585
  
3,589
  
 (28)%
      
2,567
  
3,589
  
(28)%
    
(1,447)
  
348
  
U
   GE Capital preferred stock dividends declared
  
(18)
  
-
          
-
  
-
        
(169)
  
(161)
    
   Earnings (loss) from continuing operations
                                          
     attributable to GE common shareowners
  
2,567
  
3,589
  
 (28)%
      
2,567
  
3,589
  
(28)%
    
(1,615)
  
187
  
U
   Earnings (loss) from discontinued
                                          
     operations, net of taxes
  
3,758
  
1,649
          
3,716
  
1,563
        
3,764
  
1,650
    
   Less net earnings (loss) attributable to
                                          
      noncontrolling interests, discontinued operations
  
43
  
86
          
-
  
-
        
43
  
86
    
Net earnings attributable to GE
                                          
   common shareowners
$
6,283
$
5,152
  
22%
    
$
6,283
$
5,152
  
22%
  
$
2,107
$
1,751
  
20%
       
–
              
#REF!
            
#REF!
    
Per-share amounts - earnings from
                                          
   continuing operations
                                          
Diluted earnings per share
$
0.26
$
0.35
  
 (26)%
                              
Basic earnings per share
$
0.26
$
0.36
  
 (28)%
                              
Per-share amounts - net earnings
                                          
Diluted earnings per share
$
0.64
$
0.51
  
 25 %
                              
Basic earnings per share
$
0.64
$
0.51
  
 25 %
                              
Total average equivalent shares
                                          
Diluted earnings
  
9,821
  
10,127
  
 (3)%
                              
Basic earnings
  
9,745
  
10,050
  
 (3)%
                              
Dividends declared per common share
$
0.23
$
0.23
  
 - %
                              
Amounts attributable to GE
                                          
   common shareowners:
                                          
Earnings from continuing operations
$
2,567
$
3,589
  
 (28)%
                              
Adjustment (net of tax): non-operating
                                          
   pension costs
  
447
  
343
                                  
Operating earnings (non-GAAP measure)
$
3,014
$
3,932
  
 (23)%
                              
Operating earnings - diluted
                                          
  earnings per share (non-GAAP measure)
$
0.31
$
0.39
  
 (21)%
                              
(a) Refers to the Industrial businesses of the Company including GE Capital on an equity basis.

Amounts may not add due to rounding.

Dollar amounts and share amounts in millions; per-share amounts in dollars. Supplemental data are shown for "GE" and "GE Capital." Transactions between GE and GE Capital have been eliminated from the "Consolidated" columns. See Note 1 to the 2014 consolidated financial statements at www.ge.com/ar2014 and our Form 8-K filed on August 7, 2015 for further information about consolidation matters.
GENERAL ELECTRIC COMPANY
CONDENSED STATEMENT OF EARNINGS (LOSS) (UNAUDITED)
 
 
Consolidated
    
GE(a)
  
Financial Services (GE Capital)
Twelve months ended December 31
2015
2014
V%
    
2015
2014
  
V%
2015
2014
V%
                                           
Revenues and other income
                                          
Sales of goods and services
$
105,809
$
106,758
  
 (1)%
    
$
106,206
$
107,308
  
(1)%
  
$
79
$
121
  
(35)%
Other income
  
2,227
  
778
          
2,165
  
707
        
-
  
-
    
GE Capital earnings (loss) from continuing operations
  
-
  
-
          
(7,672)
  
1,532
        
-
  
-
    
GE Capital revenues from services
  
9,350
  
9,648
          
-
  
-
        
10,722
  
11,199
    
   Total revenues and other income
  
117,386
  
117,184
  
-%
      
100,700
  
109,546
  
(8)%
    
10,801
  
11,320
  
(5)%
                                           
Costs and expenses
                                          
Cost of sales
  
82,693
  
83,704
          
80,828
  
81,876
        
2,342
  
2,498
    
Interest and other financial charges
  
3,463
  
2,723
          
1,706
  
1,579
        
2,301
  
1,638
    
Selling, general and administrative expenses
  
17,831
  
16,848
          
14,914
  
14,972
        
3,512
  
2,689
    
Investment contracts, insurance losses and
                                          
   insurance annuity benefits
  
2,605
  
2,530
          
-
  
-
        
2,737
  
2,660
    
Other costs and expenses
  
2,608
  
1,115
          
-
  
-
        
2,647
  
1,159
    
   Total costs and expenses
  
109,200
  
106,921
  
2%
      
97,447
  
98,427
  
(1)%
    
13,539
  
10,645
  
27%
Earnings (loss) from continuing operations
                                          
    before income taxes
  
8,186
  
10,263
  
(20)%
      
3,252
  
11,119
  
(71)%
    
(2,739)
  
676
  
U
Benefit (provision) for income taxes
  
(6,485)
  
(773)
          
(1,506)
  
(1,634)
        
(4,979)
  
861
    
Earnings (loss) from continuing operations
  
1,700
  
9,490
  
(82)%
      
1,746
  
9,485
  
(82)%
    
(7,718)
  
1,537
  
U
Earnings (loss) from discontinued
                                          
    operations, net of taxes
  
(7,495)
  
5,855
          
(7,807)
  
5,698
        
(7,485)
  
5,860
    
Net earnings (loss)
  
(5,795)
  
15,345
  
U
      
(6,061)
  
15,182
  
U
    
(15,202)
  
7,397
  
U
Less net earnings (loss) attributable to
                                          
    noncontrolling interests
  
332
  
112
          
83
  
(50)
        
248
  
162
    
Net earnings (loss) attributable to
                                          
   the Company
  
(6,126)
  
15,233
  
U
      
(6,145)
  
15,233
  
U
    
(15,450)
  
7,234
  
U
Preferred stock dividends declared
  
(18)
  
-
          
-
  
-
        
(330)
  
(322)
    
Net earnings (loss) attributable to
                                          
   GE common shareowners
$
(6,145)
$
15,233
  
U
    
$
(6,145)
$
15,233
  
U
  
$
(15,780)
$
6,912
  
U
Amounts attributable to GE common
                                          
   shareowners:
                                          
   Earnings (loss) from continuing operations
$
1,700
$
9,490
  
(82)%
    
$
1,746
$
9,485
  
(82)%
  
$
(7,718)
$
1,537
  
U
   Less net earnings (loss) attributable
                                          
     to noncontrolling interests, continuing operations
  
19
  
(45)
          
83
  
(50)
        
(64)
  
5
    
   Earnings (loss) from continuing operations
                                          
     attributable to the Company
  
1,681
  
9,535
  
(82)%
      
1,663
  
9,535
  
(83)%
    
(7,654)
  
1,532
  
U
   GE Capital preferred stock dividends declared
  
(18)
  
-
          
-
  
-
        
(330)
  
(322)
    
   Earnings (loss) from continuing operations
                                          
      attributable to GE common shareowners
  
1,663
  
9,535
  
(83)%
      
1,663
  
9,535
  
(83)%
    
(7,983)
  
1,209
  
U
   Earnings (loss) from discontinued
                                          
      operations, net of taxes
  
(7,495)
  
5,855
          
(7,807)
  
5,698
        
(7,485)
  
5,860
    
   Less net earnings (loss) attributable to
                                          
      noncontrolling interests, discontinued operations
  
312
  
157
          
1,663
  
9,535
        
312
  
157
    
Net earnings (loss) attributable to GE
                                          
   common shareowners
$
(6,145)
$
15,233
  
U
    
$
(6,145)
$
15,233
  
U
  
$
(15,780)
$
6,912
  
U
                                           
Per-share amounts - earnings (loss) from
                                          
   continuing operations
                                          
Diluted earnings (loss) per share
$
0.17
$
0.94
  
(82)%
                              
Basic earnings (loss) per share
$
0.17
$
0.95
  
(82)%
                              
Per-share amounts - net earnings (loss)
                                          
Diluted earnings (loss) per share
$
(0.61)
$
1.50
  
U
                              
Basic earnings (loss) per share
$
(0.62)
$
1.51
  
U
                              
Total average equivalent shares
                                          
Diluted earnings
  
10,016
  
10,123
  
 (1)%
                              
Basic earnings
  
9,944
  
10,045
  
 (1)%
                              
Dividends declared per common share
$
0.92
$
0.89
  
3%
                              
                                           
Amounts attributable to GE
                                          
   common shareowners:
                                          
Earnings from continuing operations
$
1,663
$
9,535
  
(83)%
                              
Adjustment (net of tax): non-operating
                                          
   pension costs
  
1,797
  
1,378
                                  
Operating earnings (non-GAAP measure)
$
3,460
$
10,913
  
(68)%
                              
Operating earnings - diluted
                                          
   earnings per share (non-GAAP measure)
$
0.35
$
1.08
  
(68)%
                              
(a) Refers to the Industrial businesses of the Company including GE Capital on an equity basis.

Amounts may not add due to rounding.
Dollar amounts and share amounts in millions; per-share amounts in dollars. Supplemental data are shown for "GE" and "GE Capital." Transactions between GE and GE Capital have been eliminated from the "Consolidated" columns. See Note 1 to the 2014 consolidated financial statements at www.ge.com/ar2014 and our Form 8-K filed on August 7, 2015 for further information about consolidation matters.
GENERAL ELECTRIC COMPANY
                              
SUMMARY OF OPERATING SEGMENTS (UNAUDITED)
                    
                               
 
Three months ended December 31
  
Twelve months ended December 31
(Dollars in millions)
2015
  
2014
  
V%
  
2015
  
2014
  
V%
                               
Revenues(a)
                              
   Power
$
7,085
  
$
6,867
  
 3 %
  
$
21,490
  
$
20,580
  
 4 %
   Renewable Energy
  
1,938
    
2,319
  
 (16)%
    
6,273
    
6,399
  
 (2)%
   Oil & Gas
  
4,355
    
5,162
  
 (16)%
    
16,450
    
19,085
  
 (14)%
   Energy Management
  
2,375
    
1,978
  
 20 %
    
7,600
    
7,319
  
 4 %
   Aviation
  
6,734
    
6,424
  
 5 %
    
24,660
    
23,990
  
 3 %
   Healthcare
  
4,973
    
5,133
  
 (3)%
    
17,639
    
18,299
  
 (4)%
   Transportation
  
1,612
    
1,577
  
 2 %
    
5,933
    
5,650
  
 5 %
   Appliances & Lighting
  
2,282
    
2,310
  
 (1)%
    
8,751
    
8,404
  
 4 %
   Total industrial segment revenues
  
31,352
    
31,772
  
 (1)%
    
108,796
    
109,727
  
 (1)%
   Capital
  
2,585
    
2,919
  
 (11)%
    
10,801
    
11,320
  
 (5)%
   Total segment revenues
  
33,937
    
34,691
  
 (2)%
    
119,597
    
121,047
  
 (1)%
   Corporate items and eliminations(a)
  
(46)
    
(1,279)
  
 (96)%
    
(2,211)
    
(3,863)
  
 (43)%
Consolidated revenues and other income
                              
  from continuing operations
$
33,892
  
$
33,412
  
 1 %
  
$
117,386
  
$
117,184
  
 - %
                               
Segment profit (loss)(a)
                              
   Power
$
1,628
  
$
1,804
  
 (10)%
  
$
4,502
  
$
4,486
  
 - %
   Renewable Energy
  
56
    
269
  
 (79)%
    
431
    
694
  
 (38)%
   Oil & Gas
  
715
    
881
  
 (19)%
    
2,427
    
2,758
  
 (12)%
   Energy Management
  
33
    
113
  
 (71)%
    
270
    
246
  
 10 %
   Aviation
  
1,571
    
1,397
  
 12 %
    
5,507
    
4,973
  
 11 %
   Healthcare
  
938
    
1,020
  
 (8)%
    
2,882
    
3,047
  
 (5)%
   Transportation
  
339
    
315
  
 8 %
    
1,273
    
1,130
  
 13 %
   Appliances & Lighting
  
241
    
188
  
 28 %
    
674
    
431
  
 56 %
   Total industrial segment profit
  
5,522
    
5,988
  
 (8)%
    
17,966
    
17,764
  
 1 %
   Capital
  
(1,615)
    
187
  
U
    
(7,983)
    
1,209
  
U
   Total segment profit (loss)
  
3,907
    
6,175
  
 (37)%
    
9,983
    
18,973
  
 (47)%
Corporate items and eliminations(a)
  
(673)
    
(1,657)
  
 (59)%
    
(5,108)
    
(6,225)
  
 (18)%
GE interest and other financial charges
  
(463)
    
(437)
  
 6 %
    
(1,706)
    
(1,579)
  
 8 %
GE provision for income taxes
  
(204)
    
(492)
  
 (59)%
    
(1,506)
    
(1,634)
  
 (8)%
Earnings from continuing operations
                              
   attributable to GE common shareowners
  
2,567
    
3,589
  
 (28)%
    
1,663
    
9,535
  
 (83)%
Earnings (loss) from discontinued operations,
                              
   net of taxes
  
3,758
    
1,649
  
F
    
(7,495)
    
5,855
  
U
Less net earnings attributable to
                              
   noncontrolling interests, discontinued operations
  
43
    
86
  
 (50)%
    
312
    
157
  
 99 %
Earnings (loss) from discontinued operations,
                              
   net of tax and noncontrolling interest
  
3,716
    
1,563
  
F
    
(7,807)
    
5,698
  
U
Consolidated net earnings (loss)
                              
   attributable to GE common shareowners
$
6,283
  
$
5,152
  
 22 %
  
$
(6,145)
  
$
15,233
  
U
                               
(a)
Segment revenues includes both revenues and other income related to the segment. Segment profit excludes results reported as discontinued operations, the portion of earnings attributable to noncontrolling interests of consolidated subsidiaries, and accounting changes. Segment profit excludes or includes interest and other financial charges and income taxes according to how a particular segment's management is measured – excluded in determining segment profit, which we sometimes refer to as "operating profit," for Power, Renewable Energy, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation and Appliances & Lighting; included in determining segment profit, which we sometimes refer to as "net earnings," for Capital. Certain corporate costs, such as shared services, employee benefits and information technology are allocated to our segments based on usage. A portion of the remaining corporate costs are allocated based on each segment's relative net cost of operations. Total industrial segment revenues and profit include the sum of our eight industrial reporting segments without giving effect to the elimination of transactions among such segments. Total segment revenues and profit include the sum of our eight industrial segments and one financial services segment, without giving effect to the elimination of transactions among such segments.  We believe that this provides investors with a view as to the results of all of our segments, without inter-segment eliminations and corporate items.

Amounts may not add due to rounding

GENERAL ELECTRIC COMPANY
SUMMARY OF OPERATING SEGMENTS
ADDITIONAL INFORMATION (UNAUDITED)
                               
 
Three months ended December 31
  
Twelve months ended December 31
(Dollars in millions)
2015
  
2014
  
V%
  
2015
  
2014
  
V%
                               
GE Capital
                              
                               
Revenues
                              
Commercial Lending and Leasing (CLL)
$
306
  
$
295
  
 4 %
  
$
1,096
  
$
1,037
  
 6 %
Energy Financial Services (EFS)
  
81
    
577
  
 (86)%
    
987
    
1,697
  
 (42)%
GE Capital Aviation Services (GECAS)
  
1,386
    
1,290
  
 7 %
    
5,321
    
5,242
  
 2 %
   
1,773
    
2,161
  
 (18)%
    
7,404
    
7,976
  
 (7)%
GE Capital corporate items and eliminations
  
812
    
758
  
 7 %
    
3,397
    
3,344
  
 2 %
Total revenues
$
2,585
  
$
2,919
  
 (11)%
  
$
10,801
  
$
11,320
  
 (5)%
                               
Segment profit (loss)
                              
CLL
$
145
  
$
113
  
 28 %
  
$
431
  
$
365
  
 18 %
EFS
  
(19)
    
112
  
U
    
87
    
401
  
 (78)%
GECAS
  
354
    
217
  
 63 %
    
1,335
    
1,046
  
 28 %
   
480
    
442
  
 9 %
    
1,853
    
1,812
  
 2 %
GE Capital corporate items and eliminations
  
(1,927)
    
(94)
  
U
    
(9,506)
    
(280)
  
U
Preferred stock dividends declared
  
(169)
    
(161)
  
 (5)%
    
(330)
    
(322)
  
 (2)%
Total segment profit (loss)
$
(1,615)
  
$
187
  
U
  
$
(7,983)
  
$
1,209
  
U
                               
Amounts may not add due to rounding


GENERAL ELECTRIC COMPANY
                                    
CONDENSED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
 
                                     
 
Consolidated
    
GE(a)
  
Financial Services (GE Capital)
 
December 31,
  
December 31,
    
December 31,
  
December 31,
  
December 31,
  
December 31,
(Dollars in billions)
2015
  
2014
    
2015
  
2014
  
2015
  
2014
                         
Assets
                                    
Cash and marketable securities
$
102.5
  
$
105.5
    
$
10.5
  
$
16.0
  
$
91.9
  
$
89.5
Receivables
  
26.7
    
23.2
      
14.4
    
11.5
    
-
    
-
Inventories
  
22.5
    
17.7
      
22.4
    
17.6
    
0.1
    
0.1
GE Capital financing receivables - net
  
12.1
    
13.4
      
-
    
-
    
25.0
    
25.6
Property, plant & equipment - net
  
54.1
    
48.1
      
20.1
    
17.2
    
34.8
    
31.3
Receivable from GE Capital (debt assumption)
  
-
    
-
      
85.1
    
-
    
-
    
-
Investment in GE Capital
  
-
    
-
      
46.2
    
82.5
    
-
    
-
Goodwill & intangible assets
  
82.1
    
66.4
      
79.3
    
64.5
    
2.8
    
1.9
Contract assets
  
21.9
    
17.0
      
21.9
    
17.0
    
-
    
-
Other assets
  
47.6
    
37.3
      
21.1
    
16.5
    
36.6
    
28.7
Assets of businesses held for sale
  
2.8
    
2.8
      
2.8
    
2.8
    
-
    
-
Assets of discontinued operations
  
121.0
    
323.5
      
-
    
-
    
120.9
    
323.5
Total assets
$
493.1
  
$
655.0
    
$
324.0
  
$
245.7
  
$
312.1
  
$
500.6
                                     
Liabilities and equity
                                    
Borrowings
$
198.3
  
$
261.4
    
$
103.6
  
$
16.3
  
$
180.8
  
$
246.0
Investment contracts, insurance liabilities and
                                    
   insurance annuity benefits
  
25.7
    
27.4
      
-
    
-
    
26.2
    
27.9
Non-current compensation and benefits
  
40.5
    
42.2
      
39.5
    
41.5
    
1.0
    
0.7
Other liabilities
  
78.2
    
57.8
      
76.8
    
57.1
    
11.1
    
7.5
Liabilities of businesses held for sale
  
0.9
    
0.9
      
1.4
    
1.5
    
-
    
-
Liabilities of discontinued operations
  
46.5
    
128.2
      
0.1
    
0.1
    
46.4
    
128.1
Redeemable noncontrolling interest
  
3.0
    
0.1
      
3.0
    
0.1
    
-
    
-
GE shareowners' equity
  
98.3
    
128.2
      
98.3
    
128.2
    
46.2
    
87.5
Noncontrolling interests
  
1.9
    
8.7
      
1.4
    
0.8
    
0.5
    
2.9
Total liabilities and equity
$
493.1
  
$
655.0
    
$
324.0
  
$
245.7
  
$
312.1
  
$
500.6
                                     
(a) Refers to the Industrial businesses of the Company including GE Capital on an equity basis.


Amounts may not add due to rounding

Supplemental data are shown for "GE" and "GE Capital." Transactions between GE and GE Capital have been eliminated from the "Consolidated" columns. See Note 1 to the 2014 consolidated financial statements at www.ge.com/ar2014 and our Form 8-K filed on August 7, 2015 for further information about consolidation matters.



GENERAL ELECTRIC COMPANY
Financial Measures That Supplement GAAP


 We sometimes use information derived from consolidated financial information but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain of these data are considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. We have referred to:
Industrial operating earnings and EPS and GE Capital operating earnings (loss) and EPS
GE Industrial operating + Verticals Earnings & EPS
GE Industrial + Verticals revenues
Industrial segment profit and profit margin (excluding Alstom)
Industrial operating profit and operating profit margin (excluding Alstom)
Industrial organic operating profit
Segment gross margins (excluding Alstom)
Industrial segment organic revenue growth
Industrial segment organic operating profit growth
Industrial cash flows from operating activities (Industrial CFOA)
Capital ending net investment (ENI), excluding liquidity
GE Capital Tier 1 common ratio estimate

The reconciliations of these measures to the most comparable GAAP measures follow. Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in millions.
 
INDUSTRIAL OPERATING EARNINGS AND EPS AND GE CAPITAL OPERATING EARNINGS (LOSS) AND EPS
    
                               
   
Three months ended December 31
    
Twelve months ended December 31
(Dollars in millions; except per share amounts)
  
2015
    
2014
  
V%
    
2015
    
2014
  
V%
                               
Earnings (loss) from continuing operations attributable to GE
                              
   common shareowners
$
2,567
  
$
3,589
      
$
1,663
  
$
9,535
    
Adjustment (net of tax): non-operating pension costs
  
447
    
343
        
1,797
    
1,378
    
Operating earnings (loss)
  
3,014
    
3,932
  
(23)%
    
3,460
    
10,913
  
(68)%
                               
Less GE Capital earnings (loss) from continuing operations
                              
   attributable to GE common shareowners
  
(1,615)
    
187
        
(7,983)
    
1,209
    
Operating earnings excluding GE Capital earnings from continuing
                              
   operations attributable to GE
                              
     (Industrial operating earnings)
$
4,629
  
$
3,745
  
24%
  
$
11,443
  
$
9,705
  
18%
   
                              
Earnings (loss) per share - diluted(a)
                              
Continuing earnings (loss) per share
  
0.26
    
0.35
  
(26)%
    
0.17
    
0.94
  
(82)%
Adjustment (net of tax): non-operating pension costs
  
0.05
    
0.03
        
0.18
    
0.14
    
Operating earnings (loss) per share
  
0.31
    
0.39
  
(21)%
    
0.35
    
1.08
  
(68)%
Operating earnings (loss) per share attributable
                              
   to GE Capital (GE Capital operating EPS)
  
(0.16)
    
0.02
  
U
    
(0.80)
    
0.12
  
U
Operating earnings per share attributable
                              
   to Industrial (Industrial operating EPS)
$
0.47
  
$
0.37
  
27%
  
$
1.14
  
$
0.96
  
19%
                               
(a)
Earnings (loss) per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.

Operating earnings (loss) excludes non-service related pension costs of our principal pension plans comprising interest cost, expected return on plan assets and amortization of actuarial gains/losses. The service cost, prior service cost and curtailment loss components of our principal pension plans are included in operating earnings. We believe that these components of pension cost better reflect the ongoing service-related costs of providing pension benefits to our employees. As such, we believe that our measure of operating earnings (loss) provides management and investors with a useful measure of the operational results of our business. Other components of GAAP pension cost are mainly driven by capital allocation decisions and market performance, and we manage these separately from the operational performance of our businesses. Neither GAAP nor operating pension costs are necessarily indicative of the current or future cash flow requirements related to our pension plan. We also believe that this measure, considered along with the corresponding GAAP measure, provides management and investors with additional information for comparison of our operating results to the operating results of other companies.

We believe that presenting operating earnings and operating EPS separately for our industrial and financial services businesses also provides management and investors with useful information about the relative size of our industrial and financial services businesses in relation to the total company.

GE INDUSTRIAL OPERATING + VERTICALS EARNINGS & EPS
                
                               
   
Three months ended December 31
    
Twelve months ended December 31
(Dollars in millions; except per share amounts)
  
2015
    
2014
  
V%
    
2015
    
2014
  
V%
                               
GE Capital operating earnings (loss)
$
(1,615)
  
$
187
  
U
  
$
(7,983)
  
$
1,209
  
U
Less: Verticals earnings(a)
  
438
    
408
        
1,666
    
1,608
    
GE Capital operating earnings less Verticals earnings(b)
$
(2,053)
  
$
(221)
  
U
  
$
(9,649)
  
$
(399)
  
U
                               
Industrial operating earnings
$
4,629
  
$
3,745
  
 24 %
  
$
11,443
  
$
9,705
  
18%
Verticals earnings(a)
  
438
    
408
        
1,666
    
1,608
    
Industrial operating earnings + Verticals earnings
$
5,067
  
$
4,153
  
 22 %
  
$
13,109
  
$
11,313
  
16%
                               
Earnings (loss) per share - diluted(c)
                              
Industrial operating earnings-per-share
$
0.47
  
$
0.37
  
 27 %
  
$
1.14
  
$
0.96
  
19%
Verticals earnings-per-share
  
0.04
    
0.04
  
 - %
    
0.17
    
0.16
  
6%
Industrial operating + Verticals earnings-per-share
$
0.52
  
$
0.41
  
 27 %
  
$
1.31
  
$
1.12
  
17%
                               
(a)
Verticals include businesses expected to be retained (GECAS, EFS, CLL, and run-off Insurance), including allocated corporate costs of $25 million and $58 million after tax in the three months ended December 31, 2015 and 2014, respectively, and $133 million and $233 million after tax for the years ended December 31, 2015 and 2014, respectively.
(b)
Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.

As described above, Verticals represents the GE Capital businesses that we expect to retain. We believe that presenting Industrial operating + Vertical earnings-per-share amounts provides management and investors with a useful measure to evaluate the performance of the businesses we expect to retain after the disposition of most of our financial services business.


GE INDUSTRIAL + VERTICALS REVENUES
                              
                               
   
Three months ended December 31
    
Twelve months ended December 31
(Dollars in millions)
  
2015
    
2014
  
V%
    
2015
    
2014
  
V%
                               
GE Capital revenues
$
2,585
  
$
2,919
  
 (11)%
  
$
10,801
  
$
11,320
  
 (5)%
Less: Verticals revenues(a)
  
2,533
    
2,961
  
 (14)%
    
10,450
    
11,135
  
 (6)%
GE Capital revenues less Verticals revenues
$
52
  
$
(42)
  
U
  
$
351
  
$
185
  
 90 %
                               
Industrial segment revenues
$
31,352
  
$
31,772
  
 (1)%
  
$
108,796
  
$
109,727
  
 (1)%
Verticals revenues(a)
  
2,533
    
2,961
  
 (14)%
    
10,450
    
11,135
  
 (6)%
Corporate items and eliminations
  
(46)
    
(1,279)
  
 (96)%
    
(2,211)
    
(3,863)
  
 (43)%
GE Industrial + Verticals revenues
$
33,839
  
$
33,454
  
 1 %
  
$
117,035
  
$
116,999
  
 - %
                               
(a)
Verticals include businesses expected to be retained (GECAS, EFS, CLL, and run-off Insurance).

As described above, Verticals represents the GE Capital businesses that we expect to retain. We believe that presenting Industrial + Verticals revenues amounts provides management and investors with a useful measure to evaluate the performance of the businesses we expect to retain after the disposition of most of our financial services business.


INDUSTRIAL SEGMENT OPERATING PROFIT AND OPERATING MARGIN (EXCLUDING ALSTOM)
                               
 
Three months ended December 31
  
Twelve months ended December 31
(Dollars in millions)
2015
  
2014
  
V%
  
2015
  
2014
  
V%
                               
Revenues
                              
   Total industrial segment revenues
$
31,352
  
$
31,772
  
 (1)%
  
$
108,796
  
$
109,727
  
 (1)%
                               
Less: Alstom revenues
  
1,956
    
-
        
1,956
    
-
    
   Total industrial segment operating
                              
      revenues excluding Alstom
$
29,396
  
$
31,772
  
 (7)%
  
$
106,840
  
$
109,727
  
 (3)%
                               
Segment profit (loss)
                              
   Total industrial segment operating profit
$
5,522
  
$
5,988
  
 (8)%
  
$
17,966
  
$
17,764
  
 1 %
   Total industrial segment operating profit margin
  
17.6%
    
18.8%
  
 (1.2)%
    
16.5%
    
16.2%
  
 0.3 %
                               
Less: Alstom profit (loss)(a)
  
(154)
    
-
        
(154)
    
-
    
   Total industrial segment operating
                              
      profit excluding Alstom
$
5,676
  
$
5,988
  
 (5)%
  
$
18,120
  
$
17,764
  
 2 %
   Total industrial segment operating profit
                              
     margin excluding Alstom
  
19.3%
    
18.8%
        
17.0%
    
16.2%
    
                               
(a)
Loss from operations of the power and grid businesses of Alstom during the period of our ownership.

We have presented our industrial segment profit and industrial segment profit margin excluding the results of our fourth quarter 2015 Alstom power and grid acquisition. We believe that operating profit and margin adjusted for the Alstom impacts are meaningful measures because they increase the comparability of period-to-period results.


INDUSTRIAL OPERATING PROFIT AND OPERATING MARGIN (EXCLUDING ALSTOM)
                               
 
Three months ended December 31
  
Twelve months ended December 31
(Dollars in millions)
2015
  
2014
  
V%
  
2015
  
2014
  
V%
                               
Revenues
                              
   Total industrial segment revenues
  
31,352
    
31,772
  
 (1)%
    
108,796
    
109,727
  
 (1)%
   Corporate items and eliminations(a)
  
593
    
708
        
1,923
    
1,803
    
   Total Industrial operating revenues
  
30,759
    
31,064
        
106,873
    
107,924
    
   Less Alstom revenues
  
1,956
    
-
        
1,956
    
-
    
   Total Industrial operating
                              
      revenues excluding Alstom(a)
  
28,803
    
31,064
  
 (7)%
    
104,917
    
107,924
  
 (3)%
                               
                               
Segment profit (loss)
                              
   Total industrial segment profit
  
5,522
    
5,988
  
 (8)%
    
17,966
    
17,764
  
 1 %
   Total industrial segment profit margin
  
17.6%
    
18.8%
        
16.5%
    
16.2%
    
                               
   Corporate items and eliminations(b)
  
1,104
    
1,088
        
4,873
    
4,528
    
   Non-operating pension costs (pre-tax)
  
687
    
528
        
2,764
    
2,120
    
  Total industrial operating profit
  
5,105
    
5,428
  
 (6)%
    
15,857
    
15,356
  
3%
                               
   Less Alstom profit (loss)(c)
  
(154)
    
-
        
(154)
    
-
    
   Total industrial operating profit
                              
      excluding Alstom(b)
  
5,259
    
5,428
  
 (3)%
    
16,011
    
15,356
  
 4 %
   Total industrial operating profit margin
                              
     excluding Alstom(b)
  
18.3%
    
17.5%
        
15.3%
    
14.2%
    
                               
(a)
Excludes gains and GE-GE Capital Eliminations.
(b)
Excludes gains and restructuring.
(c)
Loss from operations of the power and grid businesses of Alstom during the period of our ownership.

We have presented our Industrial margin excluding the results of our fourth quarter 2015 Alstom power and grid acquisition. We believe that Industrial margin adjusted for the Alstom impacts are meaningful measures because they increase the comparability of period-to-period results.

 INDUSTRIAL ORGANIC OPERATING PROFIT
                               
 
Three months ended December 31
  
Twelve months ended December 31
(Dollars in millions)
2015
  
2014
  
V%
  
2015
  
2014
  
V%
                               
Segment profit (loss)
                              
   Total industrial segment profit
$
5,522
  
$
5,988
  
 (8)%
  
$
17,966
  
$
17,764
  
 1 %
   Corporate(a)
  
14
    
(1,131)
        
(2,344)
    
(4,105)
    
  Total industrial operating profit
$
5,536
  
$
4,857
  
 14 %
  
$
15,622
  
$
13,659
  
 14 %
                               
Less the effects of:
                              
   Acquisitions, business dispositions (other than
                              
      dispositions of businesses acquired for investment),
                              
          currency exchange rates, gains and restructuring
$
64
  
$
(466)
      
$
(1,014)
  
$
(1,506)
    
Total industrial profit excluding effects of acquisitions,
                              
   business dispositions (other than dispositions of
                              
      businesses acquired for investment), currency
                              
         exchange rates, gains and restructuring
                              
            (Industrial organic operating profit)
$
5,472
  
$
5,322
  
 3 %
  
$
16,637
  
$
15,165
  
 10 %
                               
(a)
Includes gains and restructuring and excludes non-operating pension costs (pre-tax).

Industrial organic operating profit growth measures Industrial operating profit excluding the effects of acquisitions, business dispositions and currency exchange rates. We believe that this measure provides management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and currency exchange, which activities are subject to volatility and can obscure underlying trends. Management recognizes that the term "organic Industrial profit growth" may be interpreted differently by other companies and under different circumstances. Although this may have an effect on comparability of absolute percentage growth from company to company, we believe that these measures are useful in assessing trends of the respective businesses or companies and may therefore be a useful tool in assessing period-to-period performance trends.





SEGMENT GROSS MARGIN (EXCLUDING ALSTOM)
          
           
 
Three months ended December 31
(Dollars in millions)
  
2015
    
2014
           
Industrial segment revenues
$
31,352
  
$
31,772
Less: Other income
  
194
    
199
Industrial segment sales
  
31,158
    
31,573
Less: Alstom sales
  
1,953
    
-
Industrial segment sales (excluding Alstom)
$
29,205
  
$
31,573
           
Industrial segment cost of sales
$
22,516
  
$
22,829
Industrial segment gross margin
  
8,642
    
8,745
   
27.7%
    
27.7%
           
Less: Alstom gross margin
  
224
    
-
Industrial segment gross margin (excluding Alstom)
$
8,418
  
$
8,745
   
28.8%
    
27.7%
           
We have presented our segment gross margin excluding the results of our fourth quarter 2015 Alstom power and grid acquisition. We believe that Industrial margin adjusted for the Alstom impacts are meaningful measures because they increase the comparability of period-to-period results.

 INDUSTRIAL SEGMENT ORGANIC REVENUE GROWTH
                               
 
Three months ended December 31
  
Twelve months ended December 31
(Dollars in millions)
  
2015
    
2014
  
V%
    
2015
    
2014
  
V%
                               
Segment revenues:
                              
    Power
$
7,085
  
$
6,867
      
$
21,490
  
$
20,580
    
    Renewable Energy
  
1,938
    
2,319
        
6,273
    
6,399
    
    Oil & Gas
  
4,355
    
5,162
        
16,450
    
19,085
    
    Energy Management
  
2,375
    
1,978
        
7,600
    
7,319
    
    Aviation
  
6,734
    
6,424
        
24,660
    
23,990
    
    Healthcare
  
4,973
    
5,133
        
17,639
    
18,299
    
    Transportation
  
1,612
    
1,577
        
5,933
    
5,650
    
    Appliances & Lighting
  
2,282
    
2,310
        
8,751
    
8,404
    
Industrial segment revenues
$
31,352
  
$
31,772
  
 (1)%
  
$
108,796
  
$
109,727
  
 (1)%
Less the effects of:
                              
   Acquisitions, business dispositions (other than
                              
      dispositions of businesses acquired for investment)
                              
          and currency exchange rates
  
737
    
707
        
(2,479)
    
1,270
    
Industrial segment revenues excluding effects of acquisitions,
                              
   business dispositions (other than dispositions of
                              
      businesses acquired for investment) and currency
                              
         exchange rates (Industrial segment organic revenues)
$
30,615
  
$
31,065
  
 (1)%
  
$
111,275
  
$
108,457
  
 3 %
                               

Organic revenue growth measures revenue excluding the effects of acquisitions, business dispositions and currency exchange rates. We believe that this measure provides management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and currency exchange, which activities are subject to volatility and can obscure underlying trends. We also believe that presenting organic revenue growth separately for our industrial businesses provides management and investors with useful information about the trends of our industrial businesses and enables a more direct comparison to other non-financial businesses and companies. Management recognizes that the term "organic revenue growth" may be interpreted differently by other companies and under different circumstances. Although this may have an effect on comparability of absolute percentage growth from company to company, we believe that these measures are useful in assessing trends of the respective businesses or companies and may therefore be a useful tool in assessing period-to-period performance trends.
INDUSTRIAL SEGMENT ORGANIC OPERATING PROFIT GROWTH
                               
 
Three months ended December 31
  
Twelve months ended December 31
(Dollars in millions)
  
2015
    
2014
  
V%
    
2015
    
2014
  
V%
                               
Industrial segment profit
$
5,522
  
$
5,988
  
(8)%
  
$
17,966
  
$
17,764
  
1%
Less the effects of:
                              
   Acquisitions, business dispositions (other than
                              
      dispositions of businesses acquired for
                              
         investment) and currency exchange rates
  
(318)
    
105
        
(799)
    
194
    
Industrial segment profit excluding effects of acquisitions,
                              
   business dispositions (other than dispositions of
                              
      businesses acquired for investment) and currency
                              
         exchange rates (Industrial segment organic operating profit)
$
5,840
  
$
5,883
  
(1)%
  
$
18,765
  
$
17,570
  
7%
                               

Operating profit growth measures profit excluding the effects of acquisitions, business dispositions and currency exchange rates. We believe that this measure provides management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and currency exchange, which activities are subject to volatility and can obscure underlying trends. Management recognizes that the term "organic operating profit growth" may be interpreted differently by other companies and under different circumstances. Although this may have an effect on comparability of absolute percentage growth from company to company, we believe that these measures are useful in assessing trends of the respective businesses or companies and may therefore be a useful tool in assessing period-to-period performance trends.


INDUSTRIAL CASH FLOWS FROM OPERATING ACTIVITIES (INDUSTRIAL CFOA)
 
  
                 
 
Twelve months ended December 31
  
(Dollars in millions)
  
2015
    
2014
  
V%
  
                 
Cash from GE's operating activities (continuing operations), as reported
$
16,354
  
$
15,171
  
8%
  
Less dividends from GE Capital
  
4,300
    
3,000
      
Cash from GE's operating activities (continuing operations),
                
   excluding dividends from GE Capital (Industrial CFOA)
$
12,054
  
$
12,171
  
(1)%
  
                 

We define "Industrial CFOA" as GE's cash from operating activities (continuing operations) less the amount of dividends received by GE from GE Capital. This includes the effects of intercompany transactions, including GE customer receivables sold to GE Capital; GE Capital services for trade receivables management and material procurement; buildings and equipment leased by GE from GE Capital; information technology (IT) and other services sold to GE Capital by GE; aircraft engines manufactured by GE that are installed on aircraft purchased by GE Capital from third-party producers for lease to others; and various investments, loans and allocations of GE corporate overhead costs.  We believe that investors may find it useful to compare GE's operating cash flows without the effect of GE Capital dividends, since these dividends are not representative of the operating cash flows of our industrial businesses and can vary from period to period based upon the results of the financial services businesses. Management recognizes that this measure may not be comparable to cash flow results of companies which contain both industrial and financial services businesses, but believes that this comparison is aided by the provision of additional information about the amounts of dividends paid by our financial services business and the separate presentation in our financial statements of the GE Capital cash flows. We believe that our measure of Industrial CFOA provides management and investors with a useful measure to compare the capacity of our industrial operations to generate operating cash flow with the operating cash flow of other non-financial businesses and companies and as such provides a useful measure to supplement the reported GAAP CFOA measure.

CAPITAL ENDING NET INVESTMENT (ENI), EXCLUDING LIQUIDITY
     
(Dollars in billions)
December 31, 2015
  
December 31, 2014(b)
           
Financial Services (GE Capital) total assets
$
312.1
  
$
494.0
Adjustment deferred Income taxes
  
4.6
    
6.2
GE Capital total assets
  
316.7
    
500.2
   Less assets of discontinued operations
  
120.9
    
1.2
   Less non-interest bearing liabilities
  
43.3
    
60.5
Capital ENI
  
152.4
    
438.5
   Less liquidity(a)
  
70.5
    
75.5
Capital ENI, excluding liquidity
$
81.9
  
$
363.0
   Discontinued operations, excluding liquidity
  
85.0
      
Capital ENI (excluding liquidity) including discontinued operations
$
166.9
      
           
Capital ENI percentage variance to December 31, 2014
  
(77)%
      
           
(a)
Liquidity includes cash and equivalents and $10.4 billion of high quality interest bearing deposits at December 31, 2015.
(b)
As originally reported.

We use ENI to measure the size of our Capital segment. We believe that this measure is a useful indicator of the capital (debt or equity) required to fund a business as it adjusts for non-interest bearing current liabilities generated in the normal course of business that do not require a capital outlay. We also believe that by excluding liquidity, we provide a meaningful measure of assets requiring capital to fund our Capital segment as a substantial amount of liquidity resulted from debt issuances to pre-fund future debt maturities and will not be used to fund additional assets. Liquidity consists of cash and equivalents and certain high quality interest bearing deposits. As a general matter, investments included in liquidity are expected to be highly liquid, giving us the ability to readily convert them to cash. Providing this measure will help investors measure how we are performing against our previously communicated goal to reduce the size of our financial services segment.



GE CAPITAL TIER 1 COMMON RATIO ESTIMATE(a)
       
(Dollars in billions)
December 31, 2015
           
GE Capital Shareowners' equity(b)
      
$
46.2
Adjustments:
          
   Preferred equity
        
(5.0)
   Goodwill and other intangible assets
        
(5.2)
   Other additions (deductions)
        
0.3
GE Capital Tier 1 common
      
$
36.4
Estimated risk-weighted assets(c)
        
251.1
GE Capital Tier 1 common ratio estimate
        
14.5%
           
(a)
Includes discontinued operations.
(b)
Total equity excluding noncontrolling interests.
(c)
Based on Basel 3 risk-weighted assets estimates.

The GE Capital Tier 1 common ratio estimate is the ratio of Tier 1 common equity to total risk-weighted assets as calculated based on our interpretation of the standardized U.S. Basel 3 capital rules on a transitional basis, which is  subject to review and consultation with our regulators. As such, the methodology of calculating this ratio may be refined over time as we discuss its interpretation and application with our regulators. As of December 31, 2015, we are not required by our regulators to disclose this capital ratio, and therefore this capital ratio is considered a non-GAAP financial measure. We believe that this estimated capital ratio is a useful measure to investors because it is widely used by analysts and regulators to assess the capital position of financial services companies.

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