Form 8-K GENERAL ELECTRIC CO For: Oct 21
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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) October 21, 2016
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General Electric Company
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(Exact name of registrant as specified in its charter)
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New York
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001-00035
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14-0689340
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(State or other jurisdiction
of incorporation) |
(Commission
File Number) |
(IRS Employer
Identification No.) |
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41 Farnsworth Street, Boston, MA
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02210
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(Address of principal executive offices)
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(Zip Code)
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Registrant's telephone number, including area code (617) 443-3000
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(Former name or former address, if changed since last report.)
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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):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02 Results of Operations and Financial Condition.
On October 21, 2016, General Electric Company (the "Company") released its third-quarter 2016 financial results on its investor relations website at www.ge.com/investor-relations. 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)," 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 Third-quarter 2016 financial results released on General Electric Company's website on October 21, 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
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(Registrant)
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Date: October 21, 2016
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/s/ Jan R. Hauser
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Jan R. Hauser
Vice President and Controller
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Exhibit 99
GENERAL ELECTRIC COMPANY
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CONDENSED STATEMENT OF EARNINGS (LOSS) (UNAUDITED)
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||||||||||||||||||||
Consolidated
|
GE(a)
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Financial Services (GE Capital)
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||||||||||||||||||
Three months ended September 30
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2016
|
2015
|
V%
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2016
|
2015
|
V%
|
2016
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2015
|
V%
|
|||||||||||
Revenues and other income
|
||||||||||||||||||||
Sales of goods and services
|
$
|
26,814
|
$
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25,527
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5%
|
$
|
26,934
|
$
|
25,612
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5%
|
$
|
34
|
$
|
21
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62%
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|||||
Other income
|
227
|
169
|
213
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201
|
-
|
-
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||||||||||||||
GE Capital earnings (loss) from continuing operations
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-
|
-
|
26
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(154)
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-
|
-
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||||||||||||||
GE Capital revenues from services
|
2,224
|
2,332
|
-
|
-
|
2,566
|
2,639
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||||||||||||||
Total revenues and other income
|
29,266
|
28,028
|
4%
|
27,172
|
25,659
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6%
|
2,600
|
2,660
|
(2)%
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|||||||||||
Costs and expenses
|
||||||||||||||||||||
Cost of sales
|
20,965
|
19,855
|
20,545
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19,336
|
574
|
624
|
||||||||||||||
Selling, general and administrative expenses
|
4,343
|
4,258
|
3,880
|
3,549
|
631
|
861
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||||||||||||||
Interest and other financial charges
|
961
|
897
|
483
|
440
|
617
|
586
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||||||||||||||
Investment contracts, insurance losses and
|
||||||||||||||||||||
insurance annuity benefits
|
684
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673
|
-
|
-
|
700
|
714
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||||||||||||||
Other costs and expenses
|
238
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295
|
-
|
-
|
241
|
313
|
||||||||||||||
Total costs and expenses
|
27,191
|
25,978
|
5%
|
24,909
|
23,325
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7%
|
2,763
|
3,098
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(11)%
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|||||||||||
Earnings (loss) from continuing operations
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||||||||||||||||||||
before income taxes
|
2,074
|
2,050
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1%
|
2,263
|
2,334
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(3)%
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(163)
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(438)
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63%
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|||||||||||
Benefit (provision) for income taxes
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(18)
|
(135)
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(241)
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(413)
|
223
|
278
|
||||||||||||||
Earnings (loss) from continuing operations
|
2,056
|
1,915
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7%
|
2,022
|
1,921
|
5%
|
60
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(160)
|
F
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|||||||||||
Earnings (loss) from discontinued
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||||||||||||||||||||
operations, net of taxes
|
(105)
|
629
|
(103)
|
541
|
(105)
|
630
|
||||||||||||||
Net earnings (loss)
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1,951
|
2,545
|
(23)%
|
1,918
|
2,462
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(22)%
|
(45)
|
470
|
U
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Less net earnings (loss) attributable to
|
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noncontrolling interests
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(76)
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39
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(76)
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(43)
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-
|
83
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Net earnings (loss) attributable to the Company
|
2,027
|
2,506
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(19)%
|
1,994
|
2,506
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(20)%
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(45)
|
387
|
U
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Preferred stock dividends
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(33)
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-
|
-
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-
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(33)
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-
|
||||||||||||||
Net earnings (loss) attributable to
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GE common shareowners
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$
|
1,994
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$
|
2,506
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(20)%
|
$
|
1,994
|
$
|
2,506
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(20)%
|
$
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(78)
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$
|
387
|
U
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Amounts attributable to GE common
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shareowners:
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Earnings (loss) from continuing operations
|
$
|
2,056
|
$
|
1,915
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7%
|
$
|
2,022
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$
|
1,921
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5%
|
$
|
60
|
$
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(160)
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F
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Less net earnings (loss) attributable
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to noncontrolling interests, continuing operations
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(74)
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(50)
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(76)
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(43)
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1
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(6)
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Earnings (loss) from continuing operations
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attributable to the Company
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2,131
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1,965
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8%
|
2,097
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1,965
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7%
|
59
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(154)
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F
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Preferred stock dividends
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(33)
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-
|
-
|
-
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(33)
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-
|
||||||||||||||
Earnings (loss) from continuing operations
|
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attributable to GE common shareowners
|
2,097
|
1,965
|
7%
|
2,097
|
1,965
|
7%
|
26
|
(154)
|
F
|
|||||||||||
Earnings (loss) from discontinued
|
||||||||||||||||||||
operations, net of taxes
|
(105)
|
629
|
(103)
|
541
|
(105)
|
630
|
||||||||||||||
Less net earnings (loss) attributable to
|
||||||||||||||||||||
noncontrolling interests, discontinued operations
|
(2)
|
89
|
-
|
-
|
(2)
|
89
|
||||||||||||||
Net earnings (loss) attributable to GE
|
||||||||||||||||||||
common shareowners
|
$
|
1,994
|
$
|
2,506
|
(20)%
|
$
|
1,994
|
$
|
2,506
|
(20)%
|
$
|
(78)
|
$
|
387
|
U
|
|||||
–
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#REF!
|
#REF!
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Per-share amounts - earnings (loss) from
|
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continuing operations
|
||||||||||||||||||||
Diluted earnings (loss) per share
|
$
|
0.23
|
$
|
0.19
|
21%
|
|||||||||||||||
Basic earnings (loss) per share
|
$
|
0.24
|
$
|
0.19
|
26%
|
|||||||||||||||
Per-share amounts - net earnings (loss)
|
||||||||||||||||||||
Diluted earnings (loss) per share
|
$
|
0.22
|
$
|
0.25
|
(12)%
|
|||||||||||||||
Basic earnings (loss) per share
|
$
|
0.22
|
$
|
0.25
|
(12)%
|
|||||||||||||||
Total average equivalent shares
|
||||||||||||||||||||
Diluted
|
9,016
|
10,173
|
(11)%
|
|||||||||||||||||
Basic
|
8,904
|
10,103
|
(12)%
|
|||||||||||||||||
Dividends declared per common share
|
$
|
0.23
|
$
|
0.23
|
-%
|
(a)
|
Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis.
|
Amounts may not add due to rounding. Dollar amounts and share amounts in millions; per-share amounts in dollars.
"GE Capital" means GE Capital Global Holdings, LLC (GECGH) and its predecessor General Electric Capital Corporation (GECC) and all of their affiliates and associated companies. Separate information is shown for "GE" and "Financial Services (GE Capital)." Transactions between GE and GE Capital have been eliminated from the "Consolidated" column. See Note 1 to the 2015 consolidated financial statements at www.ge.com/ar2015 for further information about consolidation matters.
4
GENERAL ELECTRIC COMPANY
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CONDENSED STATEMENT OF EARNINGS (LOSS) (UNAUDITED)
|
||||||||||||||||||||
Consolidated
|
GE(a)
|
Financial Services (GE Capital)
|
||||||||||||||||||
Nine months ended September 30
|
2016
|
2015
|
V%
|
2016
|
2015
|
V%
|
2016
|
2015
|
V%
|
|||||||||||
Revenues and other income
|
||||||||||||||||||||
Sales of goods and services
|
$
|
80,156
|
$
|
75,266
|
6%
|
$
|
80,490
|
$
|
75,592
|
6%
|
$
|
88
|
$
|
64
|
38%
|
|||||
Other income
|
3,385
|
1,092
|
3,359
|
1,023
|
-
|
-
|
||||||||||||||
GE Capital earnings (loss) from continuing operations
|
-
|
-
|
(1,466)
|
(6,207)
|
-
|
-
|
||||||||||||||
GE Capital revenues from services
|
7,063
|
7,136
|
-
|
-
|
8,168
|
8,152
|
||||||||||||||
Total revenues and other income
|
90,604
|
83,494
|
9%
|
82,382
|
70,408
|
17%
|
8,256
|
8,215
|
-%
|
|||||||||||
Costs and expenses
|
||||||||||||||||||||
Cost of sales
|
63,710
|
59,110
|
62,394
|
57,769
|
1,738
|
1,730
|
||||||||||||||
Selling, general and administrative expenses
|
13,833
|
13,058
|
12,094
|
11,035
|
2,238
|
2,458
|
||||||||||||||
Interest and other financial charges
|
4,023
|
2,228
|
1,490
|
1,243
|
3,006
|
1,348
|
||||||||||||||
Investment contracts, insurance losses and
|
||||||||||||||||||||
insurance annuity benefits
|
2,101
|
1,942
|
-
|
-
|
2,186
|
2,061
|
||||||||||||||
Other costs and expenses
|
801
|
873
|
-
|
-
|
822
|
903
|
||||||||||||||
Total costs and expenses
|
84,467
|
77,211
|
9%
|
75,977
|
70,048
|
8%
|
9,990
|
8,500
|
18%
|
|||||||||||
Earnings (loss) from continuing operations
|
||||||||||||||||||||
before income taxes
|
6,137
|
6,283
|
(2)%
|
6,405
|
360
|
F
|
(1,734)
|
(285)
|
U
|
|||||||||||
Benefit (provision) for income taxes
|
(302)
|
(7,227)
|
(1,034)
|
(1,302)
|
732
|
(5,925)
|
||||||||||||||
Earnings (loss) from continuing operations
|
5,835
|
(945)
|
F
|
5,370
|
(942)
|
F
|
(1,002)
|
(6,210)
|
84%
|
|||||||||||
Earnings (loss) from discontinued
|
||||||||||||||||||||
operations, net of taxes
|
(954)
|
(11,253)
|
(956)
|
(11,523)
|
(954)
|
(11,249)
|
||||||||||||||
Net earnings (loss)
|
4,881
|
(12,198)
|
F
|
4,414
|
(12,465)
|
F
|
(1,956)
|
(17,459)
|
89%
|
|||||||||||
Less net earnings (loss) attributable to
|
||||||||||||||||||||
noncontrolling interests
|
(283)
|
229
|
(275)
|
(38)
|
(8)
|
267
|
||||||||||||||
Net earnings (loss) attributable to the Company
|
5,164
|
(12,427)
|
F
|
4,689
|
(12,427)
|
F
|
(1,948)
|
(17,726)
|
89%
|
|||||||||||
Preferred stock dividends
|
(474)
|
-
|
-
|
-
|
(474)
|
(161)
|
||||||||||||||
Net earnings (loss) attributable to
|
||||||||||||||||||||
GE common shareowners
|
$
|
4,689
|
$
|
(12,427)
|
F
|
$
|
4,689
|
$
|
(12,427)
|
F
|
$
|
(2,422)
|
$
|
(17,887)
|
86%
|
|||||
Amounts attributable to GE common
|
||||||||||||||||||||
shareowners:
|
||||||||||||||||||||
Earnings (loss) from continuing operations
|
$
|
5,835
|
$
|
(945)
|
F
|
$
|
5,370
|
$
|
(942)
|
F
|
$
|
(1,002)
|
$
|
(6,210)
|
84%
|
|||||
Less net earnings (loss) attributable
|
||||||||||||||||||||
to noncontrolling interests, continuing operations
|
(285)
|
(41)
|
(275)
|
(38)
|
(10)
|
(3)
|
||||||||||||||
Earnings (loss) from continuing operations
|
||||||||||||||||||||
attributable to the Company
|
6,120
|
(904)
|
F
|
5,645
|
(904)
|
F
|
(992)
|
(6,207)
|
84%
|
|||||||||||
Preferred stock dividends
|
(474)
|
-
|
-
|
-
|
(474)
|
(161)
|
||||||||||||||
Earnings (loss) from continuing operations
|
||||||||||||||||||||
attributable to GE common shareowners
|
5,645
|
(904)
|
F
|
5,645
|
(904)
|
F
|
(1,466)
|
(6,368)
|
77%
|
|||||||||||
Earnings (loss) from discontinued
|
||||||||||||||||||||
operations, net of taxes
|
(954)
|
(11,253)
|
(956)
|
(11,523)
|
(954)
|
(11,249)
|
||||||||||||||
Less net earnings (loss) attributable to
|
||||||||||||||||||||
noncontrolling interests, discontinued operations
|
2
|
270
|
-
|
-
|
2
|
270
|
||||||||||||||
Net earnings (loss) attributable to GE
|
||||||||||||||||||||
common shareowners
|
$
|
4,689
|
$
|
(12,427)
|
F
|
$
|
4,689
|
$
|
(12,427)
|
F
|
$
|
(2,422)
|
$
|
(17,887)
|
86%
|
|||||
Per-share amounts - earnings (loss) from
|
||||||||||||||||||||
continuing operations
|
||||||||||||||||||||
Diluted earnings (loss) per share
|
$
|
0.61
|
$
|
(0.09)
|
F
|
|||||||||||||||
Basic earnings (loss) per share
|
$
|
0.62
|
$
|
(0.09)
|
F
|
|||||||||||||||
Per-share amounts - net earnings (loss)
|
||||||||||||||||||||
Diluted earnings (loss) per share
|
$
|
0.51
|
$
|
(1.23)
|
F
|
|||||||||||||||
Basic earnings (loss) per share
|
$
|
0.51
|
$
|
(1.23)
|
F
|
|||||||||||||||
Total average equivalent shares
|
||||||||||||||||||||
Diluted
|
9,201
|
10,085
|
(9)%
|
|||||||||||||||||
Basic
|
9,096
|
10,085
|
(10)%
|
|||||||||||||||||
Dividends declared per common share
|
$
|
0.69
|
$
|
0.69
|
-%
|
(a)
|
Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis.
|
Amounts may not add due to rounding. Dollar amounts and share amounts in millions; per-share amounts in dollars.
"GE Capital" means GE Capital Global Holdings, LLC (GECGH) and its predecessor General Electric Capital Corporation (GECC) and all of their affiliates and associated companies. Separate information is shown for "GE" and "Financial Services (GE Capital)." Transactions between GE and GE Capital have been eliminated from the "Consolidated" column. See Note 1 to the 2015 consolidated financial statements at www.ge.com/ar2015 for further information about consolidation matters.
5
GENERAL ELECTRIC COMPANY
|
|||||||||||||||
SUMMARY OF OPERATING SEGMENTS (UNAUDITED)
|
|||||||||||||||
Three months ended September 30
|
Nine months ended September 30
|
||||||||||||||
(Dollars in millions)
|
2016
|
2015
|
V%
|
2016
|
2015
|
V%
|
|||||||||
Revenues(a)
|
|||||||||||||||
Power
|
$
|
6,506
|
$
|
4,738
|
37 %
|
$
|
18,348
|
$
|
14,405
|
27 %
|
|||||
Renewable Energy
|
2,770
|
1,666
|
66 %
|
6,533
|
4,335
|
51 %
|
|||||||||
Oil & Gas
|
2,964
|
3,938
|
(25)%
|
9,497
|
12,096
|
(21)%
|
|||||||||
Aviation
|
6,300
|
6,001
|
5 %
|
19,074
|
17,927
|
6 %
|
|||||||||
Healthcare
|
4,482
|
4,255
|
5 %
|
13,190
|
12,666
|
4 %
|
|||||||||
Transportation
|
1,249
|
1,593
|
(22)%
|
3,471
|
4,322
|
(20)%
|
|||||||||
Energy Connections & Lighting(b)
|
3,151
|
4,065
|
(22)%
|
11,808
|
11,695
|
1 %
|
|||||||||
Total industrial segment revenues
|
27,421
|
26,256
|
4 %
|
81,920
|
77,445
|
6 %
|
|||||||||
Capital
|
2,600
|
2,660
|
(2)%
|
8,256
|
8,215
|
- %
|
|||||||||
Total segment revenues
|
30,021
|
28,916
|
4 %
|
90,176
|
85,660
|
5 %
|
|||||||||
Corporate items and eliminations(a)
|
(755)
|
(888)
|
429
|
(2,166)
|
|||||||||||
Consolidated revenues and other income
|
|||||||||||||||
from continuing operations
|
$
|
29,266
|
$
|
28,028
|
4 %
|
$
|
90,604
|
$
|
83,494
|
9 %
|
|||||
Segment profit (loss)(a)
|
|||||||||||||||
Power
|
$
|
1,197
|
$
|
1,071
|
12 %
|
$
|
2,910
|
$
|
2,874
|
1 %
|
|||||
Renewable Energy
|
202
|
174
|
16 %
|
413
|
375
|
10 %
|
|||||||||
Oil & Gas
|
353
|
610
|
(42)%
|
981
|
1,712
|
(43)%
|
|||||||||
Aviation
|
1,494
|
1,353
|
10 %
|
4,366
|
3,936
|
11 %
|
|||||||||
Healthcare
|
717
|
652
|
10 %
|
2,130
|
1,944
|
10 %
|
|||||||||
Transportation
|
309
|
379
|
(18)%
|
747
|
934
|
(20)%
|
|||||||||
Energy Connections & Lighting(b)
|
48
|
292
|
(84)%
|
209
|
669
|
(69)%
|
|||||||||
Total industrial segment profit
|
4,320
|
4,530
|
(5)%
|
11,756
|
12,445
|
(6)%
|
|||||||||
Capital
|
26
|
(154)
|
F
|
(1,466)
|
(6,368)
|
77 %
|
|||||||||
Total segment profit (loss)
|
4,345
|
4,376
|
(1)%
|
10,290
|
6,076
|
69 %
|
|||||||||
Corporate items and eliminations(a)
|
(1,524)
|
(1,559)
|
(2,120)
|
(4,436)
|
|||||||||||
GE interest and other financial charges
|
(483)
|
(440)
|
(1,490)
|
(1,243)
|
|||||||||||
GE provision for income taxes
|
(241)
|
(413)
|
(1,034)
|
(1,302)
|
|||||||||||
Earnings (loss) from continuing operations
|
|||||||||||||||
attributable to GE common shareowners
|
2,097
|
1,965
|
7 %
|
5,645
|
(904)
|
F
|
|||||||||
Earnings (loss) from discontinued operations,
|
|||||||||||||||
net of taxes
|
(105)
|
629
|
U
|
(954)
|
(11,253)
|
92 %
|
|||||||||
Less net earnings attributable to
|
|||||||||||||||
noncontrolling interests, discontinued operations
|
(2)
|
89
|
U
|
2
|
270
|
(99)%
|
|||||||||
Earnings (loss) from discontinued operations,
|
|||||||||||||||
net of tax and noncontrolling interest
|
(103)
|
541
|
U
|
(956)
|
(11,523)
|
92 %
|
|||||||||
Consolidated net earnings (loss)
|
|||||||||||||||
attributable to GE common shareowners
|
$
|
1,994
|
$
|
2,506
|
(20)%
|
$
|
4,689
|
$
|
(12,427)
|
F
|
|||||
(a)
|
Segment revenues include revenues and other income related to the segment. Segment profit excludes results reported as discontinued operations and material accounting changes, the portion of earnings or loss attributable to noncontrolling interests of consolidated subsidiaries, and as such only includes the portion of earnings or loss attributable to our share of the consolidated earnings or loss of consolidated subsidiaries. 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, Aviation, Healthcare, Transportation and Energy Connections & 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 seven industrial reporting segments without giving effect to the elimination of transactions among such segments. Total segment revenues and profit include the sum of our seven 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.
|
(b)
|
Beginning in the third quarter of 2016, the former Energy Connections and Appliances & Lighting segments will be presented as one reporting segment called Energy Connections & Lighting. This segment will include the historical results of the Appliances business prior to its sale in June 2016.
|
Amounts may not add due to rounding
6
GENERAL ELECTRIC COMPANY
|
||||||||||||||||||
CONDENSED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
|
||||||||||||||||||
Consolidated
|
GE(a)
|
Financial Services (GE Capital)
|
||||||||||||||||
September 30,
|
December 31,
|
September 30,
|
December 31,
|
September 30,
|
December 31,
|
|||||||||||||
(Dollars in billions)
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Assets
|
||||||||||||||||||
Cash and marketable securities
|
$
|
98.9
|
$
|
102.5
|
$
|
10.8
|
$
|
10.5
|
$
|
88.1
|
$
|
91.9
|
||||||
Receivables
|
25.2
|
27.0
|
13.4
|
14.7
|
-
|
-
|
||||||||||||
Inventories
|
24.1
|
22.5
|
24.0
|
22.4
|
0.1
|
0.1
|
||||||||||||
GE Capital financing receivables - net
|
11.9
|
12.1
|
-
|
-
|
25.0
|
25.0
|
||||||||||||
Property, plant & equipment - net
|
51.5
|
54.1
|
19.6
|
20.1
|
32.7
|
34.8
|
||||||||||||
Receivable from GE Capital (debt assumption)
|
-
|
-
|
59.8
|
84.7
|
-
|
-
|
||||||||||||
Investment in GE Capital
|
-
|
-
|
29.0
|
46.2
|
-
|
-
|
||||||||||||
Goodwill & intangible assets
|
86.8
|
83.3
|
84.1
|
80.5
|
2.7
|
2.8
|
||||||||||||
Contract assets
|
24.4
|
21.2
|
24.4
|
21.2
|
-
|
-
|
||||||||||||
Other assets
|
33.5
|
46.7
|
19.6
|
20.5
|
23.3
|
36.0
|
||||||||||||
Assets of businesses held for sale
|
0.6
|
2.8
|
0.6
|
2.8
|
-
|
-
|
||||||||||||
Assets of discontinued operations
|
30.9
|
121.0
|
-
|
-
|
30.9
|
120.9
|
||||||||||||
Total assets
|
$
|
387.7
|
$
|
493.1
|
$
|
285.2
|
$
|
323.7
|
$
|
202.7
|
$
|
311.5
|
||||||
Liabilities and equity
|
||||||||||||||||||
Borrowings
|
$
|
149.4
|
$
|
197.6
|
$
|
84.6
|
$
|
103.1
|
$
|
126.4
|
$
|
180.2
|
||||||
Investment contracts, insurance liabilities and
|
||||||||||||||||||
insurance annuity benefits
|
27.1
|
25.7
|
-
|
-
|
27.6
|
26.2
|
||||||||||||
Non-current compensation and benefits
|
40.4
|
40.5
|
39.4
|
39.5
|
1.0
|
1.0
|
||||||||||||
Other liabilities
|
74.3
|
78.8
|
74.9
|
77.0
|
8.6
|
11.1
|
||||||||||||
Liabilities of businesses held for sale
|
-
|
0.9
|
0.1
|
1.4
|
-
|
-
|
||||||||||||
Liabilities of discontinued operations
|
9.8
|
46.5
|
0.1
|
0.1
|
9.7
|
46.4
|
||||||||||||
Redeemable noncontrolling interest
|
3.1
|
3.0
|
3.1
|
3.0
|
-
|
-
|
||||||||||||
GE shareowners' equity
|
81.9
|
98.3
|
81.9
|
98.3
|
29.0
|
46.2
|
||||||||||||
Noncontrolling interests
|
1.7
|
1.9
|
1.2
|
1.4
|
0.4
|
0.5
|
||||||||||||
Total liabilities and equity
|
$
|
387.7
|
$
|
493.1
|
$
|
285.2
|
$
|
323.7
|
$
|
202.7
|
$
|
311.5
|
||||||
(a)
|
Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis.
|
Amounts may not add due to rounding
"GE Capital" means GE Capital Global Holdings, LLC (GECGH) and its predecessor General Electric Capital Corporation (GECC) and all of their affiliates and associated companies. Separate information is shown for "GE" and "Financial Services (GE Capital)." Transactions between GE and GE Capital have been eliminated from the "Consolidated" column. See Note 1 to the 2015 consolidated financial statements at www.ge.com/ar2015 for further information about consolidation matters.
7
GENERAL ELECTRIC COMPANY
Financial Measures That Supplement GAAP
We sometimes use financial measures 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 are considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules. The following non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure.
|
Industrial operating and GE Capital earnings (loss) from continuing operations and EPS
|
|
Industrial operating + Verticals earnings and EPS
|
|
Industrial operating profit and operating profit margin (excluding certain items)
|
|
Industrial segment organic revenues
|
|
Industrial cash flows from operating activities (Industrial CFOA) and Industrial CFOA excluding deal taxes
|
The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures follow. Certain columns, rows or percentages within these reconciliations may not add or recalculate due to the use of rounded numbers. Totals and percentages presented are calculated from the underlying numbers in millions.
8
INDUSTRIAL OPERATING AND GE CAPITAL EARNINGS (LOSS)
|
|||||||
FROM CONTINUING OPERATIONS AND EPS
|
|||||||
Three months ended September 30
|
|||||||
(Dollars in millions; except per share amounts)
|
2016
|
2015
|
V%
|
||||
Consolidated earnings (loss) from continuing operations
|
|||||||
attributable to GE common shareowners (GAAP)
|
$
|
2,097
|
$
|
1,965
|
7%
|
||
Non-operating pension costs (pre-tax)
|
511
|
693
|
|||||
Tax effect on non-operating pension costs(a)
|
(179)
|
(243)
|
|||||
Adjustment: non-operating pension costs (net of tax)
|
332
|
450
|
|||||
Operating earnings (loss) (Non-GAAP)
|
$
|
2,429
|
$
|
2,415
|
1%
|
||
Adjustment: GE Capital earnings (loss) from continuing operations
|
|||||||
attributable to GE common shareowners
|
26
|
(154)
|
|||||
Industrial operating earnings (Non-GAAP)
|
$
|
2,404
|
$
|
2,569
|
(6)%
|
||
|
|||||||
Earnings (loss) per share (EPS) - diluted(b)
|
|||||||
Consolidated EPS from continuing operations attributable to GE common shareowners (GAAP)
|
$
|
0.23
|
$
|
0.19
|
21%
|
||
Adjustment: non-operating pension costs (net of tax)
|
0.04
|
0.04
|
|||||
Operating EPS (Non-GAAP)
|
0.27
|
0.24
|
13%
|
||||
GE Capital EPS from continuing operations attributable to GE common shareowners (GAAP)
|
-
|
(0.02)
|
100%
|
||||
Industrial operating EPS (Non-GAAP)
|
$
|
0.27
|
$
|
0.25
|
8%
|
||
(a)
|
The tax effect on non-operating pension costs was calculated using a 35% U.S. federal statutory tax rate, based on its applicability to such cost.
|
(b)
|
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 any curtailment gain or 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. Non-operating pension costs are not 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.
INDUSTRIAL OPERATING + VERTICALS EARNINGS AND EPS
|
|||||||
Three months ended September 30
|
|||||||
(Dollars in millions; except per share amounts)
|
2016
|
2015
|
V%
|
||||
GE Capital earnings (loss) from continuing operation attributable to GE common shareowners (GAAP)
|
$
|
26
|
$
|
(154)
|
F
|
||
Adjustment: GE Capital other continuing earnings (loss) (Other Capital)
|
(441)
|
(504)
|
|||||
Verticals earnings(a)
|
$
|
466
|
$
|
351
|
33%
|
||
Industrial operating earnings (Non-GAAP)
|
$
|
2,404
|
$
|
2,569
|
(6)%
|
||
Verticals earnings(a)
|
466
|
351
|
|||||
Industrial operating earnings + Verticals earnings (Non-GAAP)
|
$
|
2,870
|
$
|
2,920
|
(2)%
|
||
Adjustment: Non-operating pension costs and Other Capital
|
(773)
|
(954)
|
|||||
Earnings (loss) from continuing operations attributable to GE common shareowners (GAAP)
|
$
|
2,097
|
$
|
1,965
|
7%
|
||
Earnings (loss) per share (EPS) - diluted(b)
|
|||||||
Industrial operating EPS (Non-GAAP)
|
$
|
0.27
|
$
|
0.25
|
8%
|
||
Verticals EPS
|
0.05
|
0.03
|
|||||
Industrial operating + Verticals EPS (Non-GAAP)
|
$
|
0.32
|
$
|
0.29
|
10%
|
||
Adjustment: Non-operating pension costs and Other Capital
|
(0.09)
|
(0.09)
|
|||||
EPS from continuing operations (GAAP)
|
$
|
0.23
|
$
|
0.19
|
21%
|
||
(a)
|
Verticals include businesses expected to be retained (GECAS, EFS, Industrial Finance, and run-off Insurance), including allocated corporate costs of $25 million after tax in both the three months ended September 30, 2016 and 2015.
|
(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 + Verticals 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.
9
INDUSTRIAL OPERATING PROFIT AND OPERATING PROFIT MARGIN (EXCLUDING CERTAIN ITEMS)
|
|||||
Three months ended September 30
|
|||||
(Dollars in millions)
|
2016
|
2015
|
|||
Revenues
|
|||||
GE total revenues and other income
|
$
|
27,172
|
$
|
25,659
|
|
Less: GE Capital earnings (loss) from continuing operations
|
26
|
(154)
|
|||
GE revenues and other income excluding GE Capital earnings (loss) (Industrial revenues) (GAAP)
|
$
|
27,146
|
$
|
25,813
|
|
Less: gains
|
208
|
-
|
|||
Less: Alstom revenues
|
3,226
|
-
|
|||
Adjusted Industrial revenues (Non-GAAP)
|
$
|
23,712
|
$
|
25,813
|
|
Costs
|
|||||
GE total costs and expenses
|
$
|
24,909
|
$
|
23,325
|
|
Less: GE interest and other financial charges
|
483
|
440
|
|||
Industrial costs excluding interest and other financial charges (GAAP)
|
$
|
24,426
|
$
|
22,885
|
|
Less: Alstom costs and expenses
|
3,082
|
-
|
|||
Less: non-operating pension costs (pre-tax)
|
511
|
693
|
|||
Less: restructuring and other
|
683
|
346
|
|||
Less: noncontrolling interests
|
76
|
43
|
|||
Adjusted Industrial costs (Non-GAAP)
|
$
|
20,074
|
$
|
21,803
|
|
Industrial profit (GAAP)
|
$
|
2,720
|
$
|
2,928
|
|
Industrial margins (GAAP)
|
10.0%
|
11.3%
|
|||
Industrial operating profit (Non-GAAP)
|
$
|
3,638
|
$
|
4,009
|
|
Industrial operating profit margins (Non-GAAP)
|
15.3%
|
15.5%
|
|||
We have presented our Industrial operating profit and operating profit margin excluding gains, non-operating pension costs (pre-tax) restructuring and other, noncontrolling interests, GE Capital preferred stock dividends, as well as the results of Alstom. We believe that Industrial operating profit and operating profit margin adjusted for these items are meaningful measures because they increase the comparability of period-to-period results.
INDUSTRIAL SEGMENT ORGANIC REVENUES
|
|||||||
Three months ended September 30
|
|||||||
(Dollars in millions)
|
2016
|
2015
|
V%
|
||||
Industrial segment revenues (GAAP)
|
$
|
27,421
|
$
|
26,256
|
4%
|
||
Adjustments:
|
|||||||
Acquisitions
|
(3,261)
|
-
|
|||||
Business dispositions (other than dispositions of businesses acquired for investment)
|
-
|
(2,219)
|
|||||
Currency exchange rates
|
37
|
-
|
|||||
Industrial segment organic revenues (Non-GAAP)
|
$
|
24,198
|
$
|
24,038
|
1%
|
||
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.
10
INDUSTRIAL CASH FLOWS FROM OPERATING ACTIVITIES (INDUSTRIAL CFOA)
|
|||||||
AND INDUSTRIAL CFOA EXCLUDING DEAL TAXES
|
|||||||
Nine months ended September 30
|
|||||||
(Dollars in millions)
|
2016
|
2015
|
V%
|
||||
Cash from GE's operating activities (continuing operations), as reported (GAAP)
|
$
|
18,342
|
$
|
6,526
|
F
|
||
Adjustment: dividends from GE Capital
|
16,050
|
450
|
|||||
Industrial CFOA (Non-GAAP)
|
$
|
2,292
|
$
|
6,076
|
(62)%
|
||
Adjustment: deal taxes related to the Appliances business sale
|
1,076
|
-
|
|||||
Industrial CFOA excluding deal taxes (Non-GAAP)
|
$
|
3,368
|
$
|
6,076
|
(45)%
|
||
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. We also believe that investors may find it useful to compare Industrial CFOA excluding the effects of deal taxes paid related to the Appliances business sale. Management recognizes that these measures 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 and Industrial CFOA excluding Appliances deal-related taxes provides management and investors with useful measures 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 useful measures to supplement the reported GAAP CFOA measure.
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