(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2016
OR
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from ____ to ____
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Commission file number 001-00035
GENERAL ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
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New York
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14-0689340
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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3135 Easton Turnpike, Fairfield, CT
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06828-0001
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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) (203) 373-2211
_______________________________________________
(Former name, former address and former fiscal year,
if changed since last report)
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Large accelerated filer
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Accelerated filer
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Non-accelerated filer
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Smaller reporting company
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Page
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Forward Looking Statements
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3
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Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)
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4
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Key Performance Indicators
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8
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Consolidated Results
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10
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Segment Operations
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14
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Corporate Items and Eliminations
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36
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Discontinued Operations
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38
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Other Consolidated Information
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39
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Statement of Financial Position
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40
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Financial Resources and Liquidity
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41
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Exposures
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47
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Critical Accounting Estimates
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48
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Other Items
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49
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Supplemental Information
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50
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Controls and Procedures
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56
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Other Financial Data
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56
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Regulations and Supervision
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57
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Legal Proceedings
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58
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Financial Statements and Notes
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61
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Exhibits
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118
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Form 10-Q Cross Reference Index
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119
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Signatures
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120
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our ability to complete incremental asset sales as part of our announced plan to reduce the size of our financial services businesses in a timely manner (or at all) and at the prices we have assumed;
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our ability to reduce costs as we execute that plan;
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changes in law, economic and financial conditions, including interest and exchange rate volatility, commodity and equity prices and the value of financial assets, including the impact of these conditions on our ability to execute that plan;
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the impact of conditions in the financial and credit markets on the availability and cost of GE Capital Global Holdings, LLC's (GE Capital) funding, and GE Capital's exposure to counterparties;
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the impact of conditions in the housing market and unemployment rates on the level of commercial credit defaults;
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pending and future mortgage loan repurchase claims and other litigation claims and investigations in connection with WMC, which may affect our estimates of liability, including possible loss estimates;
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our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so;
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the amount and timing of our cash flows and earnings and other conditions, which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at planned levels;
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GE Capital's ability to pay dividends to GE at the planned level, which may be affected by GE Capital's cash flows and earnings, financial services regulation and oversight, and other factors;
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our ability to convert pre-order commitments/wins into orders/bookings;
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the price we realize on orders/bookings since commitments/wins are stated at list prices;
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customer actions or developments such as early aircraft retirements or reduced energy demand and other factors that may affect the level of demand and financial performance of the major industries and customers we serve;
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the effectiveness of our risk management framework;
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the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation and litigation;
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our capital allocation plans, as such plans may change including with respect to the timing and size of share repurchases, acquisitions, joint ventures, dispositions and other strategic actions;
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our success in completing, including obtaining regulatory approvals for, announced transactions, such as our announced plan and transactions to reduce the size of our financial services businesses;
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our success in integrating acquired businesses and operating joint ventures, including Alstom;
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our ability to realize anticipated earnings and savings from announced transactions, acquired businesses and joint ventures, including Alstom;
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the impact of potential information technology or data security breaches; and
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the other factors that are described in "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2015.
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General Electric or the Company – the parent company, General Electric Company.
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GE – the adding together of all affiliates other than GE Capital, whose continuing operations are presented on a one-line basis, giving effect to the elimination of transactions among such affiliates. Transactions between GE and GE Capital have not been eliminated at the GE level. We present the results of GE in the center column of our consolidated statements of earnings, financial position and cash flows. An example of a GE metric is GE cash from operating activities (GE CFOA).
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General Electric Capital Corporation or GECC – the predecessor to GE Capital Global Holdings, LLC.
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GE Capital Global Holdings, LLC or GECGH – the adding together of all affiliates of GECGH, giving effect to the elimination of transactions among such affiliates.
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GE Capital or Financial Services – refers to GECGH, or its predecessor GECC, and is the adding together of all affiliates of GE Capital giving effect to the elimination of transactions among such affiliates. We present the results of GE Capital in the right-side column of our consolidated statements of earnings, financial position and cash flows.
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GE consolidated – the adding together of GE and GE Capital, giving effect to the elimination of transactions between the two. We present the results of GE consolidated in the left-side column of our consolidated statements of earnings, financial position and cash flows.
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Industrial – GE excluding the continuing operations of GE Capital. We believe that this provides investors with a view as to the results of our industrial businesses and corporate items. An example of an Industrial metric is Industrial CFOA, which is GE CFOA excluding the effects of dividends from GE Capital.
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Industrial segment – the sum of our eight industrial reporting segments, without giving effect to the elimination of transactions among such segments. This provides investors with a view as to the results of our industrial segments, without inter-segment eliminations and corporate items. An example of an industrial segment metric is industrial segment revenue growth.
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Total segment – the sum of our eight industrial segments and one financial services segment, without giving effect to the elimination of transactions among such segments. This provides investors with a view as to the results of all of our segments, without inter-segment eliminations and corporate items.
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Verticals or GE Capital Verticals – the adding together of GE Capital businesses that we expect to retain, principally its vertical financing businesses—GE Capital Aviation Services (GECAS), Energy Financial Services (EFS) and Industrial Finance (which includes Healthcare Equipment Finance, Working Capital Solutions and Industrial Financing Solutions)—that relate to the Company's core industrial domain and other operations, including our run-off insurance activities, and allocated corporate costs.
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Backlog – unfilled customer orders for products and product services (expected life of contract sales for product services).
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Continuing earnings – unless otherwise indicated, we refer to captions such as "earnings from continuing operations attributable to common shareowners" as continuing earnings or simply as earnings.
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Continuing earnings per share (EPS) – unless otherwise indicated, when we refer to continuing earnings per share, it is the diluted per-share amount of "earnings from continuing operations attributable to common shareowners".
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Digital revenues – revenues related to software-enabled product upgrades, internally developed software (including Predix) and associated hardware, and software-enabled productivity solutions. These revenues are largely generated from our operating businesses and are included in their segment results.
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Ending Net Investment (ENI) – the total capital we have invested in the Financial Services business. It is the sum of short-term borrowings, long-term borrowings and equity (excluding noncontrolling interests) adjusted for unrealized gains and losses on investment securities and hedging instruments. Alternatively, it is the amount of assets of continuing operations less the amount of non-interest-bearing liabilities.
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Equipment leased to others (ELTO) – rental equipment we own that is available to rent and is stated at cost less accumulated depreciation.
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GE Capital Exit Plan – our plan, announced on April 10, 2015, to reduce the size of our financial services businesses through the sale of most of the assets of GE Capital, and to focus on continued investment and growth in our industrial businesses.
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Industrial margin – GE revenues and other income excluding GE Capital earnings (loss) from continuing operations (Industrial revenues) minus GE total costs and expenses less GE interest and other financial charges divided by Industrial revenues.
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Industrial operating profit margin – Industrial segment profit plus corporate items and eliminations (excluding gains, restructuring, and pre-tax non-operating pension costs) divided by industrial segment revenues plus corporate items and eliminations (excluding gains and GE-GE Capital eliminations).
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Industrial segment gross margin – industrial segment sales less industrial segment cost of sales.
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Net earnings – unless otherwise indicated, we refer to captions such as "net earnings attributable to GE common shareowners" as net earnings.
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Net earnings per share (EPS) – unless otherwise indicated, when we refer to net earnings per share, it is the diluted per-share amount of "net earnings attributable to GE common shareowners".
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Non-operating pension costs – comprise the expected return on plan assets, interest cost on benefit obligations and net actuarial gain (loss) amortization for our principal pension plans.
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Operating earnings – GE earnings from continuing operations attributable to common shareowners excluding the impact of non-operating pension costs.
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Operating earnings per share – unless otherwise indicated, when we refer to operating earnings per share, it is the diluted per-share amount of "operating earnings".
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Operating pension costs – comprise the service cost of benefits earned, prior service cost amortization and curtailment gain or loss for our principal pension plans.
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Organic revenues – revenues excluding the effects of acquisitions, dispositions and foreign currency exchange.
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Product services – for purposes of the financial statement display of sales and costs of sales in our Statement of Earnings, "goods" is required by SEC regulations to include all sales of tangible products, and "services" must include all other sales, including other services activities. In our MD&A section of this report, we refer to sales under product services agreements and sales of both goods (such as spare parts and equipment upgrades) and related services (such as monitoring, maintenance and repairs) as sales of "product services," which is an important part of our operations. We refer to "product services" simply as "services" within the MD&A.
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Product services agreements – contractual commitments, with multiple-year terms, to provide specified services for products in our Power, Renewable Energy, Oil & Gas, Aviation and Transportation installed base – for example, monitoring, maintenance, service and spare parts for a gas turbine/generator set installed in a customer's power plant.
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Revenues – unless otherwise indicated, we refer to captions such as "revenues and other income" simply as revenues.
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Segment profit – refers to the operating profit of the industrial segments and the net earnings of the Financial Services segment. See the Segment Operations section within the MD&A for a description of the basis for segment profits.
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Industrial segment organic revenues
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Operating and non-operating pension costs
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Adjusted Corporate costs (operating)
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Industrial operating and GE Capital earnings (loss) from continuing operations and EPS
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Industrial operating + Verticals earnings and EPS
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Industrial operating profit and operating profit margin (excluding certain items)
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Industrial segment operating profit and operating profit margin (excluding Alstom)
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Industrial cash flows from operating activities (Industrial CFOA) and Industrial CFOA excluding taxes related to the Appliances business sale
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Capital ending net investment (ENI), excluding liquidity
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Power
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Energy Connections
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Transportation
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Renewable Energy
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Aviation
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Appliances & Lighting
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Oil & Gas
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Healthcare
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Capital
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REVENUES PERFORMANCE
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INDUSTRIAL ORDERS
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INDUSTRIAL BACKLOG
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2Q
2016
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YTD 2016
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Equipment
Services
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Equipment
Services
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Industrial Segment
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7%
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6%
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Industrial Segment Organic*
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(1)%
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(1)%
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Capital
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3%
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2%
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(a) Included $4.5 billion related to Alstom.
(b) Included $7.5 billion related to Alstom.
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(a) Included $30.3 billion related to Alstom.
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INDUSTRIAL MARGINS
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INDUSTRIAL OPERATING PROFIT MARGINS(a)*
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GE CFOA
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GE Capital Dividend
Industrial
CFOA(b)*
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(a) Excluded gains, non-operating pension costs (pre-tax), restructuring and other, noncontrolling interests, GE Capital preferred stock dividends, as well as the results of Alstom.
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(a) Included $(0.9) billion related to Alstom.
(b) 2016 included taxes of $(0.7) billion related to the sale of our Appliances business.
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CONTINUING EARNINGS (LOSS) PER SHARE
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NET EARNINGS (LOSS) PER SHARE
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OPERATING EPS*
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INDUSTRIAL OPERATING + VERTICALS EPS*
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SIGNIFICANT DEVELOPMENTS IN 2016
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During the first half of 2016, we returned $18.0 billion to shareholders including $13.7 billion through buyback of our common stock and $4.3 billion in dividends.
For the six months ended June 30, 2016, Alstom contributed revenues of $6.0 billion and an operating loss of $0.4 billion, which included the effects of purchase accounting and acquisition related charges at Corporate of $0.5 billion. Including the effects of tax benefits of $0.4 billion, net earnings was an insignificant amount for the six months ended June 30, 2016. In addition, Alstom used cash flow from operating activities of $0.9 billion for the six months ended June 30, 2016.
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On June 6, 2016, we completed the sale of our Appliances business to Qingdao Haier Co., Ltd. (Haier) for proceeds of $5.6 billion and recognized an after-tax gain of $1.8 billion in the second quarter.
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As of June 30, 2016, we have signed agreements with buyers for $181 billion of ending net investment (ENI), excluding liquidity (as originally reported at December 31, 2014), of which $158 billion have closed.
On June 28, 2016, we received approval of our request to the Financial Stability Oversight Council (FSOC) for rescission of GE Capital's designation as a nonbank Systemically Important Financial Institution (SIFI).
GE Capital paid common dividends of $3.5 billion and $11.0 billion for the three and six months ended June 30, 2016, respectively.
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REVENUES
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INDUSTRIAL AND FINANCIAL SERVICES REVENUES
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(a) Included $3.2 billion related to Alstom
(b) Included $6.0 billion related to Alstom
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(a) Included $3.2 billion related to Alstom
(b) Included $6.0 billion related to Alstom
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COMMENTARY: 2016 - 2015
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THREE MONTHS
Consolidated revenues increased $4.3 billion, or 15%.
Industrial revenues increased $4.3 billion, or 16%, mainly from the effects of acquisitions of $3.2 billion, primarily Alstom, and the net effects of dispositions of $1.6 billion, primarily due to a pre-tax gain of $3.1 billion from the sale of our Appliances business to Haier. These increases were partially offset by a decrease in Industrial organic revenue of $0.3 billion and the effects of a stronger U.S. dollar of $0.1 billion.
In 2015, the effects of acquisitions and dispositions on Industrial revenues were an insignificant amount and an increase of $0.2 billion, respectively.
Financial Services revenues increased $0.1 billion, or 3%, as a result of lower impairments, partially offset by lower gains.
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SIX MONTHS
Consolidated revenues increased $5.9 billion, or 11%.
Industrial revenues increased $5.9 billion, or 12%, mainly from the effects of acquisitions of $6.0 billion, primarily Alstom, and the net effects of dispositions of $1.1 billion, primarily due to a pre-tax gain of $3.1 billion from the sale of our Appliances business to Haier. These increases were partially offset by the effects of a stronger U.S. dollar of $0.7 billion and a decrease in Industrial organic revenue of $0.5 billion.
In 2015, the effects of acquisitions and dispositions on Industrial revenues were an increase of $0.2 billion and an insignificant amount, respectively.
Financial Services revenues increased $0.1 billion, or 2%, primarily due to lower impairments, organic revenue growth and the effects of acquisitions, partially offset by lower gains and the effects of currency exchange.
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CONTINUING EARNINGS (LOSS)
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INDUSTRIAL OPERATING EARNINGS + VERTICALS EARNINGS*
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INDUSTRIAL SELLING, GENERAL & ADMINISTRATIVE (SG&A) AS A % OF SALES
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(a) 14.6% excluding $3.2 billion of Alstom sales and $0.6 billion of Alstom SG&A
(b) 14.9% excluding $6.1 billion of Alstom sales and $1.1 billion of Alstom SG&A
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COMMENTARY: 2016 - 2015
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THREE MONTHS
Consolidated continuing earnings increased $1.6 billion, or 95%.
The net effects of dispositions on consolidated continuing earnings were increases of $1.9 billion in 2016, primarily due to an after-tax gain of $1.8 billion from the sale of our Appliances business to Haier and $0.3 billion in 2015. The effects of acquisitions on consolidated continuing earnings were a decrease of $0.1 billion in 2016 and an insignificant amount in 2015.
Financial Services losses increased $0.1 billion, or 22%, primarily due to core decreases, reflecting excess interest expense and higher insurance reserve provisions, partially offset by tax adjustments in the three months ended June 30, 2016, to bring the GE Capital six- month tax rate in line with the projected full-year tax rate.
Earnings per share amounts for the second quarter of 2016 were positively impacted by the reduction in number of outstanding common shares compared to the second quarter of 2015. The average number of shares outstanding used to calculate second quarter 2016 earnings per share amounts was 10% lower than in the second quarter of 2015 as a result of previously disclosed actions, primarily the 2015 Synchrony Financial share exchange and ongoing share buyback activities over the last 12 months funded in large part by dividends from GE Capital.
Industrial SG&A costs increased $0.6 billion as the favorable impact of cost reductions at Corporate and lower non-operating pension costs were more than offset by increases in SG&A relating to Alstom and higher restructuring charges.
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SIX MONTHS
Consolidated continuing earnings increased $6.4 billion.
The net effects of dispositions on consolidated continuing earnings were increases of $1.9 billion in 2016, primarily due to an after-tax gain of $1.8 billion from the sale of our Appliances business to Haier and $0.3 billion in 2015. The effects of acquisitions on consolidated continuing earnings were a decrease of $0.1 billion in 2016 and an increase of $0.1 billion in 2015.
Financial Services losses decreased $4.7 billion, or 76%, primarily due to the absence of the 2015 charges associated with the GE Capital Exit Plan.
Earnings per share amounts for the first six months of 2016 were positively impacted by the reduction in number of outstanding common shares compared to the first six months of 2015. The average number of shares outstanding used to calculate first six-month 2016 earnings per share amounts was 8% lower than in the first six-month of 2015 as a result of previously disclosed actions, primarily the 2015 Synchrony Financial share exchange and ongoing share buyback activities over the last 12 months funded in large part by dividends from GE Capital.
Industrial SG&A costs increased $0.7 billion as the favorable impact of cost reductions at Corporate and lower non-operating pension costs were more than offset by increases in SG&A relating to Alstom and higher restructuring charges.
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$0.7 billion of net loss primarily related to the completed and planned dispositions of most of the CLL businesses, which was recorded in discontinued operations under the caption "Earnings (loss) from discontinued operations, net of taxes" in the Statement of Earnings.
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$0.3 billion of charges associated with the preferred equity exchange that was completed in January 2016, which was recorded in continuing operations and reported in GE Capital's corporate component under the caption "Preferred stock dividends" in the Statement of Earnings.
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$0.2 billion of restructuring and other charges, of which $0.1 billion was recorded in discontinued operations under the caption "Earnings (loss) from discontinued operations, net of taxes" in the Statement of Earnings and $0.1 billion was recorded in continuing operations and reported in GE Capital's corporate component under the captions "Selling, general and administrative expenses" and "Other costs and expenses" in the Statement of Earnings.
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SUMMARY OF OPERATING SEGMENTS
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Three months ended June 30
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Six months ended June 30
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(In millions)
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2016
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2015
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V%
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2016
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2015
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V%
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Revenues
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Power
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$
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6,639
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$
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5,055
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31 %
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$
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11,843
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$
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9,667
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23 %
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Renewable Energy
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2,094
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1,641
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28 %
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3,763
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2,669
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41 %
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|||||||||||
Oil & Gas
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3,219
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4,118
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(22)%
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6,533
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8,157
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(20)%
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Energy Connections
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2,734
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1,768
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55 %
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4,994
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3,453
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45 %
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|||||||||||
Aviation
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6,511
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6,251
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4 %
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12,774
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11,926
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7 %
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|||||||||||
Healthcare
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4,525
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4,337
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4 %
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8,708
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8,412
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4 %
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Transportation
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1,240
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1,420
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(13)%
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2,222
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2,728
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(19)%
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Appliances & Lighting
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1,667
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2,236
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(25)%
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3,663
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4,177
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(12)%
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Total industrial segment revenues
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28,630
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26,826
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7 %
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54,499
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51,188
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6 %
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Capital
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2,771
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2,690
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3 %
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5,656
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5,556
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2 %
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|||||||||||
Total segment revenues
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31,401
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29,516
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6 %
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60,155
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56,744
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6 %
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|||||||||||
Corporate items and eliminations
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2,093
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(290)
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1,184
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(1,278)
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Consolidated revenues
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$
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33,494
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$
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29,226
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15 %
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$
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61,339
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$
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55,466
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11 %
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|||||||
Segment profit (loss)
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|||||||||||||||||
Power
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$
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1,140
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$
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1,046
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9 %
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$
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1,714
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$
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1,803
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(5)%
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|||||||
Renewable Energy
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128
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144
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(11)%
|
211
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201
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5 %
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|||||||||||
Oil & Gas
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320
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613
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(48)%
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628
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1,102
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(43)%
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|||||||||||
Energy Connections
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35
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82
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(57)%
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(49)
|
110
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U
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|||||||||||
Aviation
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1,348
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1,269
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6 %
|
2,872
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2,583
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11 %
|
|||||||||||
Healthcare
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782
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704
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11 %
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1,413
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1,292
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9 %
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|||||||||||
Transportation
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273
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331
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(18)%
|
437
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556
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(21)%
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|||||||||||
Appliances & Lighting
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96
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165
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(42)%
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211
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268
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(21)%
|
|||||||||||
Total industrial segment profit
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4,122
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4,355
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(5)%
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7,437
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7,915
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(6)%
|
|||||||||||
Capital
|
(600)
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(493)
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(22)%
|
(1,492)
|
(6,215)
|
76 %
|
|||||||||||
Total segment profit (loss)
|
3,523
|
3,862
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(9)%
|
5,944
|
1,700
|
F
|
|||||||||||
Corporate items and eliminations
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974
|
(1,185)
|
(597)
|
(2,876)
|
|||||||||||||
GE interest and other financial charges
|
(567)
|
(414)
|
(1,007)
|
(803)
|
|||||||||||||
GE provision for income taxes
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(648)
|
(583)
|
(849)
|
(890)
|
|||||||||||||
Earnings (loss) from continuing operations
|
|||||||||||||||||
attributable to GE common shareowners
|
3,281
|
1,679
|
95 %
|
3,492
|
(2,869)
|
F
|
|||||||||||
Earnings (loss) from discontinued operations, net of tax
|
(541)
|
(2,947)
|
82 %
|
(849)
|
(11,883)
|
93 %
|
|||||||||||
Less net earnings attributable to noncontrolling
|
|||||||||||||||||
interests, discontinued operations
|
3
|
92
|
(97)%
|
3
|
181
|
(98)%
|
|||||||||||
Earnings (loss) from discontinued operations,
|
|||||||||||||||||
net of tax and noncontrolling interest
|
(544)
|
(3,039)
|
82 %
|
(852)
|
(12,064)
|
93 %
|
|||||||||||
Consolidated net earnings (loss)
|
|||||||||||||||||
attributable to the GE common shareowners
|
$
|
2,738
|
$
|
(1,360)
|
F
|
$
|
2,639
|
$
|
(14,933)
|
F
|
|||||||
\
|
\
|
|
Interest and other financial charges, income taxes and GE preferred stock dividends are excluded in determining segment profit (which we sometimes refer to as "operating profit") for the industrial segments.
|
|
Interest and other financial charges, income taxes and GE Capital preferred stock dividends are included in determining segment profit (which we sometimes refer to as "net earnings") for the Capital segment.
|
|
The translational foreign exchange impact is included within Foreign Exchange.
|
|
The transactional impact of foreign exchange hedging is included in operating cost within Productivity and in other income within Other.
|
INDUSTRIAL SEGMENT EQUIPMENT
& SERVICES REVENUES
|
INDUSTRIAL SEGMENT PROFIT
|
||
Equipment(a)
Services(b)
|
|
||
(a) $13.5 billion, excluding $2.0 billion related to Alstom*, and $25.6 billion, excluding $3.7 billion related to Alstom* for the three and six months ended June 30, 2016, respectively
(b) $12.0 billion, excluding $1.2 billion related to Alstom*, and $23.0 billion, excluding $2.3 billion related to Alstom* for the three and six months ended June 30, 2016, respectively
*Non-GAAP Financial Measure
|
(a) $4.0 billion, excluding $0.1 billion related to Alstom*
(b) $7.3 billion, excluding $0.1 billion related to Alstom*
|
2016 – 2015 COMMENTARY: THREE MONTHS ENDED JUNE 30
|
Industrial segment revenues increased $1.8 billion (7%), driven by increases at Power, Renewable Energy and Energy Connections, mainly as a result of the effects of acquisitions (primarily Alstom). This increase was partially offset by lower revenues at Oil & Gas and Appliances & Lighting (due to the sale of the Appliances business in the second quarter of 2016), as well as an unfavorable impact of foreign exchange.
Industrial segment profit decreased $0.2 billion (5%), mainly driven by lower earnings at Oil & Gas, partially offset by higher earnings at Power, Aviation and Healthcare.
Industrial segment margin decreased 180 bps primarily driven by the effects of Alstom results. Excluding Alstom, industrial segment margin was 15.6%, compared with 16.2% in the same period of 2015.
|
2016 – 2015 COMMENTARY: SIX MONTHS ENDED JUNE 30
|
Industrial segment revenues increased $3.3 billion (6%), driven by increases at Power, Renewable Energy and Energy Connections, mainly as a result of the effects of acquisitions (primarily Alstom). This increase was partially offset by lower revenues at Oil & Gas, as well as an unfavorable impact of foreign exchange.
Industrial segment profit decreased $0.5 billion (6%), mainly driven by lower earnings at Oil & Gas, Energy Connections and Transportation, partially offset by higher earnings at Aviation and Healthcare.
Industrial segment margin decreased 190 bps primarily driven by the effects of Alstom results. Excluding Alstom, industrial segment margin was 15.1%, compared with 15.5% in the same period of 2015.
|
2016 YTD SUB-SEGMENT REVENUES
|
EQUIPMENT/SERVICES REVENUES
|
|||
|
||||
(a) Includes Water & Distributed Power and GE Hitachi Nuclear
|
Services Equipment
|
|||
ORDERS
|
BACKLOG
|
|||
|
Equipment
Services
|
|
Equipment
Services
|
|
(a) Included $2.9 billion related to Alstom
(b) Included $4.3 billion related to Alstom
|
(a) Included $16.6 billion related to Alstom
|
|||
UNIT SALES
|
||||
|
SEGMENT REVENUES
(a) $5.2 billion, excluding $1.5 billion related to Alstom*
(b) $9.0 billion, excluding $2.9 billion related to Alstom*
|
SEGMENT PROFIT
(a) $1.1 billion, excluding $0.1 billion related to Alstom*
(b) $1.6 billion, excluding $0.1 billion related to Alstom*
|
SEGMENT PROFIT MARGIN
(a) 20.3%, excluding 6.1% related to Alstom*
(b) 17.8%, excluding 4.0% related to Alstom*
|
|||||||||
Equipment
Services
|
|||||||||||
SEGMENT REVENUES & PROFIT WALK:
|
COMMENTARY: 2016 - 2015
|
||||||||||
THREE MONTHS
|
Segment revenues up $1.6 billion (31%);
Segment profit up $0.1 billion (9%) as a result of:
The increase in revenues was primarily driven by the effects of Alstom and increased services volume at Power Services, partially offset by lower Gas Power Systems volume. The increase in volume was partially offset by lower other income, including negative foreign exchange transactional hedge impacts.
The increase in profit was primarily driven by the effects of Alstom, partially offset by other income, including negative foreign exchange transactional hedge impacts.
|
||||||||||
Revenues
|
Profit
|
||||||||||
June 30, 2015
|
$
|
5.1
|
$
|
1.0
|
|||||||
Volume
|
0.2
|
-
|
|||||||||
Price
|
-
|
-
|
|||||||||
Foreign Exchange
|
-
|
-
|
|||||||||
(Inflation)/Deflation
|
N/A
|
-
|
|||||||||
Mix
|
N/A
|
-
|
|||||||||
Productivity
|
N/A
|
-
|
|||||||||
Other
|
(0.1)
|
(0.1)
|
|||||||||
Alstom
|
1.5
|
0.1
|
|||||||||
June 30, 2016
|
$
|
6.6
|
$
|
1.1
|
|||||||
SIX MONTHS
|
Segment revenues up $2.2 billion (23%);
Segment profit down $0.1 billion (5%) as a result of:
The increase in revenues was primarily driven by the effects of Alstom and increased services volume at Power Services, partially offset by lower equipment volume at Gas Power Services as a result of 24 fewer gas turbine shipments than in the prior year. The increase was partially offset by lower other income, including negative foreign exchange transactional hedge impacts, as well as the effects of a stronger U.S. dollar.
The decrease in profit was primarily driven by lower cost productivity, lower volume and lower other income, including negative foreign exchange transactional hedge impacts. These decreases were partially offset by a favorable business mix and the effects of Alstom.
|
||||||||||
Revenues
|
Profit
|
||||||||||
June 30, 2015
|
$
|
9.7
|
$
|
1.8
|
|||||||
Volume
|
(0.5)
|
(0.1)
|
|||||||||
Price
|
-
|
-
|
|||||||||
Foreign Exchange
|
(0.1)
|
-
|
|||||||||
(Inflation)/Deflation
|
N/A
|
-
|
|||||||||
Mix
|
N/A
|
0.2
|
|||||||||
Productivity
|
N/A
|
(0.2)
|
|||||||||
Other
|
(0.1)
|
(0.2)
|
|||||||||
Alstom
|
2.9
|
0.1
|
|||||||||
June 30, 2016
|
$
|
11.8
|
$
|
1.7
|
|||||||
2016 YTD SUB-SEGMENT REVENUES
|
EQUIPMENT/SERVICES REVENUES
|
|||
|
||||
(a) Offshore Wind revenues were insignificant
|
Services Equipment
|
|||
ORDERS
|
BACKLOG
|
|||
Equipment
Services
|
Equipment
Services
|
|||
(a) Included $0.2 billion related to Alstom
(b) Included $0.4 billion related to Alstom
|
(a) Included $5.1 billion related to Alstom
|
|||
UNIT SALES
|
||||
|
SEGMENT REVENUES
|
SEGMENT PROFIT
|
SEGMENT PROFIT MARGIN
|
||||||||
(a) $1.9 billion, excluding $0.2 billion related to Alstom*
(b) $3.2 billion, excluding $0.5 billion related to Alstom*
|
Equipment
Services
|
(a) $0.1 billion, excluding an insignificant amount related to Alstom*
(b) $0.2 billion, excluding an insignificant amount related to Alstom*
|
(a) 6.8%, excluding 0.5% related to Alstom*
(b) 6.7%, excluding (1.4)% related to Alstom*
|
|||||||
SEGMENT REVENUES & PROFIT WALK:
|
COMMENTARY: 2016 - 2015
|
|||||||||
THREE MONTHS
|
Segment revenues up $0.5 billion (28%);
Segment profit down 11% as a result of:
The increase in revenues was primarily due to the effects of Alstom and higher volume, mainly driven by higher equipment sales in Onshore Wind as a result of shipping 50 more onshore wind turbines than in the prior year.
The decrease in profit was mainly due to increased launch costs related to the 2 and 3 MW onshore units, partially offset by higher volume.
|
|||||||||
Revenues
|
Profit
|
|||||||||
June 30, 2015
|
$
|
1.6
|
$
|
0.1
|
||||||
Volume
|
0.3
|
-
|
||||||||
Price
|
-
|
-
|
||||||||
Foreign Exchange
|
-
|
-
|
||||||||
(Inflation)/Deflation
|
N/A
|
-
|
||||||||
Mix
|
N/A
|
-
|
||||||||
Productivity
|
N/A
|
-
|
||||||||
Other
|
-
|
-
|
||||||||
Alstom
|
0.2
|
-
|
||||||||
June 30, 2016
|
$
|
2.1
|
$
|
0.1
|
||||||
SIX MONTHS
|
Segment revenues up $1.1 billion (41%);
Segment profit up 5% as a result of:
The increase in revenues was primarily due to higher volume, mainly driven by the increase in onshore wind turbine shipments, as a result of shipping 246 more units than in the prior year, and the effects of Alstom. The increase was partially offset by the effects of a stronger U.S. dollar and lower other income, including negative foreign exchange transactional hedge impacts.
The increase in profit was primarily due to higher volume and cost productivity, partially offset by lower other income, including negative foreign exchange transactional hedge impacts.
|
|||||||||
Revenues
|
Profit
|
|||||||||
June 30, 2015
|
$
|
2.7
|
$
|
0.2
|
||||||
Volume
|
0.8
|
0.1
|
||||||||
Price
|
-
|
-
|
||||||||
Foreign Exchange
|
(0.1)
|
-
|
||||||||
(Inflation)/Deflation
|
N/A
|
-
|
||||||||
Mix
|
N/A
|
-
|
||||||||
Productivity
|
N/A
|
0.1
|
||||||||
Other
|
(0.1)
|
(0.1)
|
||||||||
Alstom
|
0.5
|
-
|
||||||||
June 30, 2016
|
$
|
3.8
|
$
|
0.2
|
||||||
2016 YTD SUB-SEGMENT REVENUES
|
EQUIPMENT/SERVICES REVENUES
|
|||
(a) Previously referred to as Measurement & Controls (M&C)
|
Services Equipment
|
|||
ORDERS
|
BACKLOG
|
|||
|
Equipment
Services
|
|
Equipment
Services
|
|
(a) Included an insignificant amount related to Alstom
(b) Included $0.1 billion related to Alstom
|
(a) Included $0.1 billion related to Alstom
|
SEGMENT REVENUES
|
SEGMENT PROFIT
|
SEGMENT PROFIT MARGIN
|
||
(a) $3.2 billion, excluding an insignificant amount related to Alstom*
(b) $6.5 billion, excluding $0.1 billion related to Alstom*
|
Equipment
Services
|
(a) $0.3 billion, excluding an insignificant amount related to Alstom*
(b) $0.6 billion, excluding an insignificant amount related to Alstom*
|
(a) 10.0%, excluding 7.3% related to Alstom*
(b) 9.7%, excluding 4.8% related to Alstom*
|
SEGMENT REVENUES & PROFIT WALK:
|
COMMENTARY: 2016 - 2015
|
|||||
THREE MONTHS
|
Segment revenues down $0.9 billion (22%);
Segment profit down $0.3 billion (48%) as a result of:
The decrease in revenues was primarily market driven, mainly due a decrease in equipment volume across all sub-segments and lower prices at TMS and SS&D, as well as lower other income, including negative foreign exchange transactional hedge impacts.
The decrease in profit was primarily market driven, mainly due to lower equipment volume and prices, which, despite the effects of restructuring actions, drove lower cost productivity, and lower other income, including negative foreign exchange transactional hedge impacts. These decreases were partially offset by material deflation.
|
|||||
Revenues
|
Profit
|
|||||
June 30, 2015
|
$
|
4.1
|
$
|
0.6
|
||
Volume
|
(0.7)
|
(0.1)
|
||||
Price
|
(0.1)
|
(0.1)
|
||||
Foreign Exchange
|
-
|
-
|
||||
(Inflation)/Deflation
|
N/A
|
0.1
|
||||
Mix
|
N/A
|
-
|
||||
Productivity
|
N/A
|
(0.1)
|
||||
Other
|
(0.1)
|
(0.1)
|
||||
Alstom
|
-
|
-
|
||||
June 30, 2016
|
$
|
3.2
|
$
|
0.3
|
||
SIX MONTHS
|
Segment revenues down $1.6 billion (20%);
Segment profit down $0.5 billion (43%) as a result of:
The decrease in revenues was primarily due to lower equipment volume across all sub-segments, the effects of a stronger U.S. dollar and lower prices.
The decrease in profit was primarily market driven, mainly due to lower equipment volume and prices, which, despite the effects of restructuring actions, drove lower cost productivity. These decreases were partially offset by material deflation and higher other income.
|
|||||
Revenues
|
Profit
|
|||||
June 30, 2015
|
$
|
8.2
|
$
|
1.1
|
||
Volume
|
(1.4)
|
(0.2)
|
||||
Price
|
(0.1)
|
(0.1)
|
||||
Foreign Exchange
|
(0.2)
|
-
|
||||
(Inflation)/Deflation
|
N/A
|
0.1
|
||||
Mix
|
N/A
|
-
|
||||
Productivity
|
N/A
|
(0.3)
|
||||
Other
|
-
|
0.1
|
||||
Alstom
|
0.1
|
-
|
||||
June 30, 2016
|
$
|
6.5
|
$
|
0.6
|
||
2016 YTD SUB-SEGMENT REVENUES
|
EQUIPMENT/SERVICES REVENUES
|
|||
Services Equipment
|
||||
ORDERS
|
BACKLOG
|
|||
|
Equipment
Services
|
Equipment
Services
|
||
(a) Included $1.4 billion related to Alstom
(b) Included $2.6 billion related to Alstom
|
(a) Included $8.4 billion related to Alstom
|
SEGMENT REVENUES
|
SEGMENT PROFIT (LOSS)
|
SEGMENT PROFIT MARGIN
|
||
(a) $1.3 billion, excluding $1.4 billion related to Alstom*
(b) $2.5 billion, excluding $2.5 billion related to Alstom*
|
Equipment
Services
|
(a) Includes an insignificant amount related to Alstom*
(b) $(0.1) billion, excluding an insignificant amount related to Alstom*
|
(a) (0.7)%, excluding 3.1% related to Alstom*
(b) (2.3)%, excluding 0.3% related to Alstom*
|
SEGMENT REVENUES & PROFIT WALK:
|
COMMENTARY: 2016 - 2015
|
|||||
THREE MONTHS
|
Segment revenues up $1.0 billion (55%);
Segment profit down 57% as a result of:
The increase in revenues was driven by the effects of Alstom, including higher equipment sales at Grid, partially offset by a decrease in core volume driven by Industrial Solutions and Power Conversion.
The decrease in profit was due to lower cost productivity, lower core volume and an unfavorable business mix.
|
|||||
Revenues
|
Profit
|
|||||
June 30, 2015
|
$
|
1.8
|
$
|
0.1
|
||
Volume
|
(0.4)
|
-
|
||||
Price
|
-
|
-
|
||||
Foreign Exchange
|
-
|
-
|
||||
(Inflation)/Deflation
|
N/A
|
-
|
||||
Mix
|
N/A
|
-
|
||||
Productivity
|
N/A
|
(0.1)
|
||||
Other
|
-
|
-
|
||||
Alstom
|
1.4
|
-
|
||||
June 30, 2016
|
$
|
2.7
|
$
|
-
|
||
SIX MONTHS
|
Segment revenues up $1.5 billion (45%);
Segment profit down $0.2 billion as a result of:
The increase in revenues was driven by the effects of Alstom, including higher equipment sales at Grid, partially offset by a decrease in core volume driven by Industrial Solutions and Power Conversion. The increase was partially offset by the effects of a stronger U.S. dollar and lower other income, including negative foreign exchange hedge impacts.
The decrease in profit was due to lower cost productivity, driven by lower core volume, as well as lower other income, including negative foreign exchange transactional hedge impacts.
|
|||||
Revenues
|
Profit
|
|||||
June 30, 2015
|
$
|
3.5
|
$
|
0.1
|
||
Volume
|
(0.9)
|
-
|
||||
Price
|
-
|
-
|
||||
Foreign Exchange
|
(0.1)
|
-
|
||||
(Inflation)/Deflation
|
N/A
|
-
|
||||
Mix
|
N/A
|
-
|
||||
Productivity
|
N/A
|
(0.1)
|
||||
Other
|
-
|
-
|
||||
Alstom
|
2.5
|
-
|
||||
June 30, 2016
|
$
|
5.0
|
$
|
-
|
2016 YTD SUB-SEGMENT REVENUES
|
EQUIPMENT/SERVICES REVENUES
|
|||
Services Equipment
|
||||
ORDERS
|
BACKLOG
|
|||
|
Equipment
Services
|
Equipment
Services
|
||
UNIT SALES
|
||||
(a)GEnx and LEAP engines are a subset of commercial engines
(b)Commercial spares shipment rate in millions of dollars per day
|
SEGMENT REVENUES
|
SEGMENT PROFIT
|
SEGMENT PROFIT MARGIN
|
||
|
Equipment
Services
|
SEGMENT REVENUES & PROFIT WALK:
|
COMMENTARY: 2016 - 2015
|
|||||
THREE MONTHS
|
Segment revenues up $0.3 billion (4%);
Segment profit up $0.1 billion (6%) as a result of:
The increase in revenues was primarily due to higher services volume and military spares volume, partially offset by lower equipment volume driven by lower GEnx shipments and Military volume. The increase in volume was partially offset by lower other income due to non-repeat of other income items in the prior year.
The increase in profit was primarily due to higher services volume and higher cost productivity, partially offset by lower other income.
|
|||||
Revenues
|
Profit
|
|||||
June 30, 2015
|
$
|
6.3
|
$
|
1.3
|
||
Volume
|
0.3
|
0.1
|
||||
Price
|
-
|
-
|
||||
Foreign Exchange
|
-
|
-
|
||||
(Inflation)/Deflation
|
N/A
|
-
|
||||
Mix
|
N/A
|
-
|
||||
Productivity
|
N/A
|
0.1
|
||||
Other
|
(0.1)
|
(0.1)
|
||||
June 30, 2016
|
$
|
6.5
|
$
|
1.3
|
||
SIX MONTHS
|
Segment revenues up $0.8 billion (7%);
Segment profit up $0.3 billion (11%) as a result of:
The increase in revenues was primarily driven by higher services volume and prices, partially offset by decreased volume in Commercial Engines and Military.
The increase in profit was primarily driven by higher services volume and prices, higher cost productivity and a favorable business mix, partially offset by lower other income.
|
|||||
Revenues
|
Profit
|
|||||
June 30, 2015
|
$
|
11.9
|
$
|
2.6
|
||
Volume
|
0.8
|
0.2
|
||||
Price
|
0.1
|
0.1
|
||||
Foreign Exchange
|
-
|
-
|
||||
(Inflation)/Deflation
|
N/A
|
-
|
||||
Mix
|
N/A
|
0.1
|
||||
Productivity
|
N/A
|
0.2
|
||||
Other
|
-
|
(0.1)
|
||||
June 30, 2016
|
$
|
12.8
|
$
|
2.9
|
||
2016 YTD SUB-SEGMENT REVENUES
|
EQUIPMENT/SERVICES REVENUES
|
|||
Services Equipment
|
||||
ORDERS
|
BACKLOG
|
|||
Equipment
Services
|
Equipment
Services
|
SEGMENT REVENUES
|
SEGMENT PROFIT
|
SEGMENT PROFIT MARGIN
|
||
|
Equipment
Services
|
SEGMENT REVENUES & PROFIT WALK:
|
COMMENTARY: 2016 - 2015
|
|||||
THREE MONTHS
|
Segment revenues up $0.2 billion (4%);
Segment profit up $0.1 billion (11%) as a result of:
The increase in revenues was primarily due to higher volume driven by Life Sciences and Healthcare Systems, partially offset by lower prices at Healthcare Systems.
The increase in profit was primarily driven by higher cost productivity, including the effects of previous restructuring actions and volume growth, partially offset by lower prices at Healthcare Systems.
|
|||||
Revenues
|
Profit
|
|||||
June 30, 2015
|
$
|
4.3
|
$
|
0.7
|
||
Volume
|
0.3
|
-
|
||||
Price
|
(0.1)
|
(0.1)
|
||||
Foreign Exchange
|
-
|
-
|
||||
(Inflation)/Deflation
|
N/A
|
-
|
||||
Mix
|
N/A
|
-
|
||||
Productivity
|
N/A
|
0.1
|
||||
Other
|
-
|
-
|
||||
June 30, 2016
|
$
|
4.5
|
$
|
0.8
|
||
SIX MONTHS
|
Segment revenues up $0.3 billion (4%);
Segment profit up $0.1 billion (9%) as a result of:
The increase in revenues was primarily due to higher volume driven by Life Sciences and Healthcare Systems, partially offset by the effects of a stronger U.S. dollar and lower prices at Healthcare Systems.
The increase in profit was primarily driven by higher cost productivity, including the effects of previous restructuring actions and volume growth, partially offset by lower prices at Healthcare Systems.
|
|||||
Revenues
|
Profit
|
|||||
June 30, 2015
|
$
|
8.4
|
$
|
1.3
|
||
Volume
|
0.6
|
0.1
|
||||
Price
|
(0.1)
|
(0.1)
|
||||
Foreign Exchange
|
(0.2)
|
-
|
||||
(Inflation)/Deflation
|
N/A
|
-
|
||||
Mix
|
N/A
|
-
|
||||
Productivity
|
N/A
|
0.2
|
||||
Other
|
-
|
-
|
||||
June 30, 2016
|
$
|
8.7
|
$
|
1.4
|
||
2016 YTD SUB-SEGMENT REVENUES
|
EQUIPMENT/SERVICES REVENUES
|
|||
(a) Includes Marine, Stationary, Drilling and Digital
|
Services Equipment
|
|||
ORDERS
|
BACKLOG
|
|||
|
Equipment
Services
|
Equipment
Services
|
||
UNIT SALES
|
||||
SEGMENT REVENUES
|
SEGMENT PROFIT
|
SEGMENT PROFIT MARGIN
|
||
|
Equipment
Services
|
SEGMENT REVENUES & PROFIT WALK:
|
COMMENTARY: 2016 - 2015
|
|||||
THREE MONTHS
|
Segment revenues down $0.2 billion (13%);
Segment profit down $0.1 billion (18%) as a result of:
The decrease in revenues was primarily due to lower services volume driven by the impact of higher parked locomotives, partially offset by 31 more locomotive shipments than in the prior year. The decrease in revenues was also impacted by the Signaling business disposition in November 2015.
The decrease in profit was driven by an unfavorable business mix due to higher locomotive shipments and lower drill and services volume, partially offset by higher cost productivity, including the effects of previous restructuring actions, and material deflation.
|
|||||
Revenues
|
Profit
|
|||||
June 30, 2015
|
$
|
1.4
|
$
|
0.3
|
||
Volume
|
(0.2)
|
-
|
||||
Price
|
-
|
-
|
||||
Foreign Exchange
|
-
|
-
|
||||
(Inflation)/Deflation
|
N/A
|
-
|
||||
Mix
|
N/A
|
(0.1)
|
||||
Productivity
|
N/A
|
-
|
||||
Other
|
-
|
-
|
||||
June 30, 2016
|
$
|
1.2
|
$
|
0.3
|
||
SIX MONTHS
|
Segment revenues down $0.5 billion (19%);
Segment profit down $0.1 billion (21%) as a result of:
The decrease in revenues was primarily driven by lower equipment volume, driven by 28 fewer locomotive shipments than in prior year, as well as lower services volume due to higher parked locomotives. The decrease in revenues was also impacted by the Signaling business disposition in November 2015.
The decrease in profit was primarily driven by lower equipment volume and an unfavorable business mix, partially offset by material deflation and the effects of previous restructuring actions.
|
|||||
Revenues
|
Profit
|
|||||
June 30, 2015
|
$
|
2.7
|
$
|
0.6
|
||
Volume
|
(0.5)
|
(0.1)
|
||||
Price
|
-
|
-
|
||||
Foreign Exchange
|
-
|
-
|
||||
(Inflation)/Deflation
|
N/A
|
-
|
||||
Mix
|
N/A
|
-
|
||||
Productivity
|
N/A
|
-
|
||||
Other
|
-
|
-
|
||||
June 30, 2016
|
$
|
2.2
|
$
|
0.4
|
||
2016 YTD SUB-SEGMENT REVENUES
|
||
|
||
(a) The sale of Appliances was completed on June 6, 2016
(b) Includes Current, powered by GE
|
FINANCIAL OVERVIEW - THREE AND SIX MONTHS ENDED JUNE 30
(Dollar in billions)
|
SEGMENT REVENUES
|
SEGMENT PROFIT
|
SEGMENT PROFIT MARGIN
|
||
Equipment
Services
|
SEGMENT REVENUES & PROFIT WALK:
|
COMMENTARY: 2016 - 2015
|
|||||
THREE MONTHS
|
Segment revenues down $0.6 billion (25%);
Segment profit down $0.1 billion (42%) as a result of:
The decrease in revenues was due to lower volume driven by the Appliances disposition in June 2016, as well as lower Lighting revenues, as lower traditional lighting sales were partially offset by an increase in LED revenues, and lower prices.
The decrease in profit was due to lower prices and the effect of the Appliances disposition, partially offset by material deflation.
|
|||||
Revenues
|
Profit
|
|||||
June 30, 2015
|
$
|
2.2
|
$
|
0.2
|
||
Volume
|
(0.5)
|
-
|
||||
Price
|
(0.1)
|
(0.1)
|
||||
Foreign Exchange
|
-
|
-
|
||||
(Inflation)/Deflation
|
N/A
|
-
|
||||
Mix
|
N/A
|
-
|
||||
Productivity
|
N/A
|
-
|
||||
Other
|
-
|
-
|
||||
June 30, 2016
|
$
|
1.7
|
$
|
0.1
|
||
SIX MONTHS
|
Segment revenues down $0.5 billion (12%);
Segment profit down $0.1 billion (21%) as a result of:
The decrease in revenues was due to lower volume driven by the Appliances disposition in June 2016, as well as lower Lighting revenues, as lower traditional lighting sales were partially offset by an increase in LED revenues, and lower prices.
The decrease in profit was due to lower prices, lower volume and the effects of the Appliances disposition, partially offset by material deflation.
|
|||||
Revenues
|
Profit
|
|||||
June 30, 2015
|
$
|
4.2
|
$
|
0.3
|
||
Volume
|
(0.4)
|
-
|
||||
Price
|
(0.1)
|
(0.1)
|
||||
Foreign Exchange
|
-
|
-
|
||||
(Inflation)/Deflation
|
N/A
|
0.1
|
||||
Mix
|
N/A
|
-
|
||||
Productivity
|
N/A
|
-
|
||||
Other
|
-
|
-
|
||||
June 30, 2016
|
$
|
3.7
|
$
|
0.2
|
||
2016 YTD SUB-SEGMENT REVENUES
|
ENDING NET INVESTMENT, EXCLUDING LIQUIDITY*
|
||
(a) As originally reported; $309 billion including discontinued operations
(b) $116 billion including discontinued operations
|
|||
SIGNIFICANT TRENDS & DEVELOPMENTS
|
|
The GE Capital Exit Plan - On April 10, 2015, the Company announced its plan to reduce the size of the financial services businesses through the sale of most of its assets over the following 24 months. Further information on the GE Capital Exit Plan is provided in the Consolidated Results section of the MD&A.
|
|
Milestone Aviation Group – On January 30, 2015, we acquired Milestone Aviation Group, a helicopter leasing business, for approximately $1.8 billion.
|
|
Dividends – GE Capital paid common dividends of $3.5 billion and $11.0 billion to GE in the three and six months ended June 30, 2016, respectively. In July 2016, GE Capital paid an additional $4.0 billion of common dividends to GE bringing the year-to-date total to $15.0 billion.
|
SEGMENT REVENUES
|
SEGMENT PROFIT (LOSS)(a)
|
|||
Total Capital
Verticals
Other Continuing
|
|
Verticals
Other Continuing
Total Capital
|
||
(a) Interest and other financial charges and income taxes are included in determining segment profit (loss) for the Capital segment.
|
||||
|
Within Capital, Verticals revenues decreased by $0.2 billion as a result of organic revenue declines ($0.1 billion), lower gains ($0.1 billion) and higher impairments.
|
|
Other Capital revenues increased $0.3 billion as a result of lower impairments ($0.2 billion) and organic revenue growth ($0.1 billion).
|
|
Within Capital, Verticals net earnings decreased by $0.1 billion due to higher insurance reserve provisions ($0.1 billion) and lower gains, partially offset by core increases.
|
|
Other Capital net loss decreased by less than $0.1 billion primarily as a result of:
|
|
Higher treasury operation expenses of $0.4 billion reflecting excess interest expense, costs associated with the May 2016 debt tender and derivative activities that reduce or eliminate interest rate, currency or market risk between financial assets and liabilities. We expect to continue to have excess interest costs in 2016 as asset sales outpace our debt maturities. We may engage in liability management actions, such as buying back debt, based on market and economic conditions.
|
|
Higher restructuring expenses of $0.1 billion.
|
|
Tax adjustments of $0.3 billion in the three months ended June 30, 2016, to bring Capital's six-month tax rate in line with the projected full year tax rate.
|
|
Lower tax expenses of $0.1 billion primarily related to the absence of the second quarter 2015 expected repatriation of foreign earnings related to the GE Capital Exit Plan.
|
|
Within Capital, Verticals revenues decreased by $0.1 billion as a result of organic revenue declines ($0.3 billion) and higher impairments ($0.1 billion), partially offset by higher gains ($0.2 billion) and the effects of acquisitions.
|
|
Other Capital revenues increased $0.2 billion as a result of organic revenue growth ($0.3 billion) and lower impairments ($0.2 billion), partially offset by lower gains ($0.3 billion).
|
|
Within Capital, Verticals net earnings increased by $0.1 billion as a result of higher gains ($0.2 billion), partially offset by higher impairments ($0.1 billion).
|
|
Other Capital net loss decreased by $4.7 billion primarily as a result of:
|
|
Lower tax expenses of $6.1 billion primarily related to the absence of the 2015 expected repatriation of foreign earnings and write-off of deferred tax assets related to the GE Capital Exit Plan.
|
|
Tax adjustments of $0.4 billion in the six months ended June 30, 2016, to bring Capital's six-month tax rate in line with the projected full year tax rate.
|
|
Higher treasury operation expenses of $1.2 billion reflecting excess interest expense, costs associated with the February and May 2016 debt tenders and derivative activities that reduce or eliminate interest rate, currency or market risk between financial assets and liabilities. We expect to continue to have excess interest costs in 2016 as asset sales outpace our debt maturities. We may engage in liability management actions, such as buying back debt, based on market and economic conditions.
|
|
Charges of $0.3 billion associated with the preferred equity exchange that was completed in January 2016.
Higher restructuring expenses of $0.2 billion.
|
CORPORATE ITEMS AND ELIMINATIONS
|
||||||||||||
REVENUES AND OPERATING PROFIT (COST)
|
||||||||||||
Three months ended June 30
|
Six months ended June 30
|
|||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
||||||||
Revenues
|
||||||||||||
Gains (losses) on disposals
|
$
|
3,129
|
$
|
49
|
$
|
3,188
|
$
|
49
|
||||
NBCU settlement
|
-
|
450
|
-
|
450
|
||||||||
Eliminations and other
|
(1,036)
|
(789)
|
(2,004)
|
(1,777)
|
||||||||
Total Corporate Items and Eliminations
|
$
|
2,093
|
$
|
(290)
|
$
|
1,184
|
$
|
(1,278)
|
||||
Operating profit (cost)
|
||||||||||||
Gains (losses) on disposals
|
$
|
3,129
|
$
|
49
|
$
|
3,188
|
$
|
49
|
||||
NBCU settlement
|
-
|
450
|
-
|
450
|
||||||||
Principal retirement plans(a)
|
(479)
|
(673)
|
(947)
|
$
|
(1,461)
|
|||||||
Restructuring and other charges
|
(1,188)
|
(399)
|
(1,874)
|
(821)
|
||||||||
Eliminations and other
|
(487)
|
(613)
|
(964)
|
(1,093)
|
||||||||
Total Corporate Items and Eliminations
|
$
|
974
|
$
|
(1,185)
|
$
|
(597)
|
$
|
(2,876)
|
||||
CORPORATE COSTS
|
||||||||||||
Three months ended June 30
|
Six months ended June 30
|
|||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
||||||||
Total Corporate Items and Eliminations
|
$
|
974
|
$
|
(1,185)
|
$
|
(597)
|
$
|
(2,876)
|
||||
Less non-operating pension cost
|
(511)
|
(689)
|
(1,023)
|
(1,384)
|
||||||||
Total Corporate costs (operating)*
|
$
|
1,485
|
$
|
(496)
|
$
|
426
|
$
|
(1,492)
|
||||
Less restructuring and other charges, gains and settlement
|
1,941
|
100
|
1,313
|
(322)
|
||||||||
Adjusted total corporate costs (operating)*
|
$
|
(456)
|
$
|
(596)
|
$
|
(887)
|
$
|
(1,170)
|
||||
(a)
|
Included non-operating pension cost* of $0.5 billion and $0.7 billion in the three months ended June 30, 2016 and 2015, respectively, and $1.0 billion and $1.4 billion in the six months ended June 30, 2016 and 2015, respectively, which includes expected return on plan assets, interest costs and non-cash amortization of actuarial gains and losses.
|
|
$3.1 billion of higher gains from the sale of our Appliances business to Haier.
|
|
$0.5 billion lower other income from a settlement related to the NBCU transaction in the second quarter of 2015, and
|
|
$0.2 billion of higher inter-segment eliminations.
|
|
$3.1 billion of higher gains from the sale of our Appliances business to Haier,
|
|
$0.2 billion of lower costs associated with our principal retirement plans including the effects of higher discount rates, and
|
|
$0.1 billion of lower costs under our long-term incentive plan.
|
|
$0.8 billion higher restructuring and other charges, which included $0.3 billion of restructuring charges associated with the Alstom acquisition, and
|
|
$0.5 billion lower other income from a settlement related to the NBCU transaction in the second quarter of 2015.
|
|
$3.1 billion of higher gains from the sale of our Appliances business to Haier.
|
|
$0.5 billion lower other income from a settlement related to the NBCU transaction in the second quarter of 2015, and
|
|
$0.2 billion of higher inter-segment eliminations.
|
|
$3.1 billion of higher gains from the sale of our Appliances business to Haier,
|
|
$0.5 billion of lower costs associated with our principal retirement plans including the effects of higher discount rates, and
|
|
$0.1 billion of lower costs under our long-term incentive plan.
|
|
$1.0 billion higher restructuring and other charges, which included $0.5 billion of restructuring charges associated with the Alstom acquisition, and
|
|
$0.5 billion lower other income from a settlement related to the NBCU transaction in the second quarter of 2015.
|
COSTS
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In billions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Power
|
$
|
0.3
|
(a)
|
$
|
-
|
$
|
0.5
|
(a)
|
$
|
0.1
|
|
Renewable Energy
|
0.1
|
-
|
0.2
|
0.1
|
|||||||
Oil & Gas
|
0.4
|
(b)
|
0.2
|
0.5
|
(b)
|
0.3
|
|||||
Energy Connections
|
0.1
|
-
|
0.1
|
0.1
|
|||||||
Aviation
|
-
|
-
|
0.1
|
-
|
|||||||
Healthcare
|
0.1
|
(c)
|
0.1
|
0.3
|
(c)
|
0.1
|
|||||
Transportation
|
0.1
|
-
|
0.2
|
-
|
|||||||
Appliances & Lighting
|
-
|
-
|
0.1
|
-
|
|||||||
Total
|
$
|
1.2
|
$
|
0.4
|
$
|
1.9
|
$
|
0.7
|
|||
(a)
|
For the three and six months ended June 30, 2016, Power's results excluded $0.3 billion and $0.5 billion of costs, primarily related to restructuring charges associated with the Alstom acquisition.
|
(b)
|
For the three and six months ended June 30, 2016, Oil & Gas's results excluded $0.4 billion and $0.5 billion of costs, primarily related to ongoing restructuring activities.
|
(c)
|
For the three and six months ended June 30, 2016, Healthcare's results excluded $0.1 billion and $0.3 billion of costs, primarily related to restructuring charges.
|
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(541)
|
$
|
(2,947)
|
$
|
(849)
|
$
|
(11,883)
|
|||
|
$0.6 billion after-tax loss at our CLL business (including $0.5 billion after-tax loss on planned disposals).
|
|
$3.7 billion after-tax loss at our CLL business (including $4.3 billion after-tax loss on planned disposals), and
|
|
Second quarter 2015 losses were partially offset by $0.8 billion after-tax earnings at our Consumer business.
|
|
$0.8 billion after-tax loss at our CLL business (including $0.8 billion after-tax loss on planned disposals).
|
|
$7.7 billion after-tax loss at our CLL business (including $7.2 billion after-tax loss on planned disposals),
|
|
$2.3 billion after-tax loss at our Real Estate business (including $2.4 billion after-tax loss on planned disposals), and
|
|
$1.9 billion after-tax loss at our Consumer business.
|
PROVISION FOR INCOME TAXES
|
|||
|
The consolidated income tax rate was 30.6% in the second quarter of 2015 compared to 12.5% in the second quarter of 2016.
|
|
The consolidated income tax provision decreased due to a larger adjustment to reduce the tax rate to the projected full-year tax rate, partially offset by the impact of higher pre-tax income.
|
|
The consolidated tax provision includes $0.6 billion for GE (excluding GE Capital) for the second quarters of both 2015 and 2016.
|
|
The consolidated income tax rate was 167.6% in the first six months of 2015 compared to 8.4% in the first six months of 2016. The tax rate for the first six months of 2015 was in excess of 100% due to tax expense of $6.2 billion in the first six months of 2015 for the expected repatriation of foreign earnings and write-off of deferred tax assets incurred in connection with the GE Capital Exit Plan.
|
|
The consolidated income tax provision decreased from the first six months of 2015 to the first six months of 2016 due to the non-repeat of the GE Capital Exit Plan charges and due to a larger adjustment to reduce the tax rate to the projected full-year tax rate, partially offset by lower benefit from lower taxed global operations.
|
|
The consolidated tax provision includes $0.9 billion and $0.8 billion for GE (excluding GE Capital) for the first six months of 2015 and 2016, respectively.
|
|
Cash and equivalents decreased $18.4 billion. GE Cash and equivalents decreased $0.4 billion due to cash flows from operating activities of $10.7 billion (including common dividends from GE Capital of $11.0 billion), proceeds from the sale of our Appliances business of $4.8 billion and a short-term loan from GE Capital of $5.0 billion. This is more than offset by treasury stock purchases of $15.3 billion (cash basis), including $7.0 billion paid under ASR agreements, dividends of $4.3 billion and net PP&E additions of $1.4 billion. GE Capital Cash and equivalents decreased $17.9 billion primarily driven by $44.5 billion net repayments of debt, $11.2 billion in payments of dividends to shareowners and a short-term loan to GE of $5.0 billion, partially offset by $42.9 billion in proceeds from business dispositions and $0.8 billion in proceeds from the sale of receivables originated in our Appliances business and sold to Haier. See the Statement of Cash Flows section for additional information.
|
|
Assets of discontinued operations decreased $71.1 billion, primarily due to the disposition of CLL businesses of $63.5 billion. See Note 2 for additional information.
|
|
Borrowings decreased $41.2 billion, primarily due to a net decrease of GE Capital borrowings of $41.9 billion, partially offset by a net increase in borrowings by GE of $0.9 billion (excluding GE Capital debt assumption and short-term loan from GE Capital to GE).
|
|
Liabilities of discontinued operations decreased $32.1 billion, primarily driven by the disposition of CLL businesses of $27.1 billion. See Note 2 for additional information.
|
|
Common stock held in treasury increased $12.6 billion, primarily due to treasury stock purchases of $13.7 billion (book basis), including $6.3 billion repurchased under ASR agreements. This was partially offset by treasury stock issuances of $1.2 billion, primarily stock option exercises of $0.7 billion.
|
CASH AND EQUIVALENTS
|
|||||||
(In billions)
|
June 30, 2016
|
June 30, 2016
|
|||||
GE(a)
|
$
|
9.9
|
U.S.
|
$
|
16.1
|
||
GE Capital(b)
|
42.2
|
Non-U.S.(c)
|
36.0
|
||||
(a)
|
At June 30, 2016, $3.2 billion of GE cash and equivalents was held in countries with currency controls that may restrict the transfer of funds to the U.S. or limit our ability to transfer funds to the U.S. without incurring substantial costs. These funds are available to fund operations and growth in these countries and we do not currently anticipate a need to transfer these funds to the U.S.
|
(b)
|
At June 30, 2016, GE Capital cash and equivalents of about $0.9 billion were primarily in insurance entities and were subject to regulatory restrictions.
|
(c)
|
Of this amount at June 30, 2016, $3.7 billion is held outside of the U.S. and is available to fund operations and other growth of non-U.S. subsidiaries; it is also available to fund our needs in the U.S. on a short-term basis through short-term loans, without being subject to U.S. tax. Under the Internal Revenue Code, these loans are permitted to be outstanding for 30 days or less and the total of all such loans is required to be outstanding for less than 60 days during the year. If we were to repatriate this cash, we would be subject to additional U.S. income taxes and foreign withholding taxes.
|
COMMERCIAL PAPER
|
|||||
(In billions)
|
GE
|
GE Capital
|
|||
Average commercial paper borrowings during the second quarter of 2016
|
$
|
14.7
|
$
|
5.0
|
|
Maximum commercial paper borrowings outstanding during the second quarter of 2016
|
19.7
|
5.1
|
|||
OPERATING CASH FLOWS
|
INVESTING CASH FLOWS
|
FINANCING CASH FLOWS
|
||||||||
2015
|
2016
|
2015
|
2016
|
2015
|
2016
|
|||||
|
|
|
GE Capital paid common dividends totaling $11.0 billion and $0.5 billion to GE in the six months ended June 30, 2016 and 2015, respectively.
|
|
An increase of operating cash collections of $5.0 billion to $56.0 billion in 2016, primarily driven by progress collections of $1.6 billion and higher GE segment revenues from sales of goods and services.
|
|
The sale of our Appliances business to Haier for proceeds of $4.8 billion.
|
|
This is partially offset by funding of a joint venture at our Aviation business in the six months ended June 30, 2016.
|
|
An increase in net repurchases of GE treasury shares of $14.8 billion, including $7.0 billion paid under ASR agreements.
|
|
This increase was partially offset by a net change in borrowings of $1.8 billion. The change is driven by a short-term loan from GE Capital to GE of $5.0 billion in the six months ended June 30, 2016, partially offset by $3.4 billion of GE issued unsecured notes in the six months ended June 30, 2015.
|
OPERATING CASH FLOWS
|
INVESTING CASH FLOWS
|
FINANCING CASH FLOWS
|
||||||||
2015
|
2016
|
2015
|
2016
|
2015
|
2016
|
|||||
|
|
An increase in net cash collateral activity with counterparties on derivative contracts of $3.8 billion in addition to an increase in cash generated from earnings and other activity.
|
|
These increases were partially offset by higher tax payments.
|
|
Higher proceeds from the sale of certain of our CLL, Consumer and Real Estate businesses of $25.3 billion.
|
|
The 2015 acquisition of Milestone Aviation Group, resulting in net cash paid of $1.7 billion.
|
|
The sale of receivables purchased from our Appliances business and sold to Haier for proceeds of $0.8 billion.
|
|
These increases were partially offset by a short-term loan from GE Capital to GE of $5.0 billion, derivative cash settlements of $4.1 billion and net settlement activity between our continuing operations (primarily our treasury operations) and our CLL, Consumer and Real Estate businesses in discontinued operations.
|
|
Higher net repayments of borrowings of $28.3 billion.
|
|
In addition, GE Capital paid common dividends totaling $11.0 billion and $0.5 billion to GE in the six months ended June 30, 2016 and 2015, respectively.
|
OPERATING CASH FLOWS
|
INVESTING CASH FLOWS
|
FINANCING CASH FLOWS
|
||||||||
2015
|
2016
|
2015
|
2016
|
2015
|
2016
|
|||||
|
|
|
|
Lower cash generated from earnings in connection with the GE Capital Exit Plan.
|
|
This is further impacted by higher tax payments.
|
|
The sale of bank deposits for $16.5 billion in net cash paid during the first six months of 2016.
|
|
This decrease is partially offset by higher maturities in investment securities and net settlement activity between our continuing operations (primarily our treasury operations) and our CLL, Consumer and Real Estate businesses in discontinued operations.
|
|
Lower repayment of borrowings and lower net bank deposit activity.
|
|
Industrial segment organic revenues
|
|
Operating and non-operating pension costs
|
|
Adjusted Corporate costs (operating)
|
|
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 operating profit and operating profit margin (excluding Alstom)
|
|
Industrial cash flows from operating activities (Industrial CFOA) and Industrial CFOA excluding taxes related to the Appliances business sale
|
|
Capital ending net investment (ENI), excluding liquidity
|
INDUSTRIAL SEGMENT ORGANIC REVENUES
|
|||||||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||||||
(Dollars in millions)
|
2016
|
2015
|
V%
|
2016
|
2015
|
V%
|
|||||||||
Industrial segment revenues (GAAP)
|
$
|
28,630
|
$
|
26,826
|
7%
|
$
|
54,499
|
$
|
51,188
|
6%
|
|||||
Less the effects of:
|
|||||||||||||||
Acquisitions, business dispositions
|
|||||||||||||||
(other than dispositions of businesses acquired
|
|||||||||||||||
for investment) and currency exchange rates
|
4,185
|
2,202
|
6,471
|
2,743
|
|||||||||||
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) (Non-GAAP)
|
$
|
24,445
|
$
|
24,624
|
(1)%
|
$
|
48,028
|
$
|
48,446
|
(1)%
|
|||||
OPERATING AND NON-OPERATING PENSION COSTS
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Service cost for benefits earned
|
$
|
291
|
$
|
367
|
$
|
606
|
$
|
728
|
|||
Prior service cost amortization
|
76
|
51
|
152
|
103
|
|||||||
Curtailment loss (gain)
|
(1)
|
-
|
(1)
|
71
|
|||||||
Operating pension costs (Non-GAAP)
|
366
|
418
|
757
|
902
|
|||||||
Expected return on plan assets
|
(836)
|
(827)
|
(1,670)
|
(1,652)
|
|||||||
Interest cost on benefit obligations
|
735
|
696
|
1,469
|
1,391
|
|||||||
Net actuarial loss amortization
|
612
|
820
|
1,224
|
1,645
|
|||||||
Non-operating pension costs (Non-GAAP)
|
511
|
689
|
1,023
|
1,384
|
|||||||
Total principal pension plans costs (GAAP)
|
$
|
877
|
$
|
1,107
|
$
|
1,780
|
$
|
2,286
|
|||
ADJUSTED CORPORATE COSTS (OPERATING)
|
||||||||||||
Three months ended June 30
|
Six months ended June 30
|
|||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
||||||||
Total Corporate Items and Eliminations (GAAP)
|
$
|
974
|
$
|
(1,185)
|
$
|
(597)
|
$
|
(2,876)
|
||||
Less: non-operating pension cost
|
(511)
|
(689)
|
(1,023)
|
(1,384)
|
||||||||
Total Corporate costs (operating) (Non-GAAP)
|
$
|
1,485
|
$
|
(496)
|
$
|
426
|
$
|
(1,492)
|
||||
Less: restructuring other charges against gains and settlement
|
1,941
|
100
|
1,313
|
(322)
|
||||||||
Adjusted total corporate costs (operating) (Non-GAAP)
|
$
|
(456)
|
$
|
(596)
|
$
|
(887)
|
$
|
(1,170)
|
||||
INDUSTRIAL OPERATING EARNINGS AND GE CAPITAL EARNINGS (LOSS)
|
|||||||||||||||
FROM CONTINUING OPERATIONS AND EPS
|
|||||||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||||||
(Dollars in millions; except per share amounts)
|
2016
|
2015
|
V%
|
2016
|
2015
|
V%
|
|||||||||
Consolidated earnings (loss) from continuing operations
|
|||||||||||||||
attributable to GE common shareowners (GAAP)
|
$
|
3,281
|
$
|
1,679
|
95%
|
$
|
3,492
|
$
|
(2,869)
|
F
|
|||||
Non-operating pension costs (pre-tax)
|
511
|
689
|
1,023
|
1,384
|
|||||||||||
Tax effect
|
(179)
|
(241)
|
(358)
|
(484)
|
|||||||||||
Adjustment: non-operating pension costs (net of tax)
|
332
|
448
|
665
|
900
|
|||||||||||
Operating earnings (loss) (Non-GAAP)
|
3,613
|
2,127
|
70%
|
4,157
|
(1,968)
|
F
|
|||||||||
Adjustment: GE Capital earnings (loss) from continuing operations
|
|||||||||||||||
attributable to GE common shareowners
|
(600)
|
(493)
|
(1,492)
|
(6,215)
|
|||||||||||
Industrial operating earnings (loss) (Non-GAAP)
|
$
|
4,213
|
$
|
2,620
|
61%
|
$
|
5,649
|
$
|
4,245
|
33%
|
|||||
Earnings (loss) per share – diluted(a)
|
|||||||||||||||
Consolidated EPS from continuing operations attributable to
|
|||||||||||||||
GE common shareowners (GAAP)
|
$
|
0.36
|
$
|
0.17
|
F
|
$
|
0.38
|
$
|
(0.29)
|
F
|
|||||
Adjustment: non-operating pension costs (net of tax)
|
0.04
|
0.04
|
0.07
|
0.09
|
|||||||||||
Operating EPS (Non-GAAP)
|
0.39
|
0.21
|
86%
|
0.45
|
(0.20)
|
F
|
|||||||||
GE Capital EPS from continuing operations attributable to
|
|||||||||||||||
GE common shareowners
|
(0.07)
|
(0.05)
|
(40)%
|
(0.16)
|
(0.62)
|
74%
|
|||||||||
Industrial operating EPS (Non-GAAP)
|
$
|
0.46
|
$
|
0.26
|
77%
|
$
|
0.61
|
$
|
0.42
|
45%
|
|||||
(a)
|
Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.
|
INDUSTRIAL OPERATING + VERTICALS EARNINGS AND EPS
|
|||||||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||||||
(Dollars in millions; except per share amounts)
|
2016
|
2015
|
V%
|
2016
|
2015
|
V%
|
|||||||||
GE Capital earnings (loss) from continuing operations
|
|||||||||||||||
attributable to GE common shareowners (GAAP)
|
$
|
(600)
|
$
|
(493)
|
(22)%
|
$
|
(1,492)
|
$
|
(6,215)
|
76%
|
|||||
Adjustment: Verticals earnings(a)
|
452
|
531
|
948
|
877
|
|||||||||||
GE Capital other continuing earnings (loss) (Non-GAAP)
|
$
|
(1,051)
|
$
|
(1,024)
|
(3)%
|
(2,440)
|
(7,092)
|
66%
|
|||||||
Industrial operating earnings (Non-GAAP)
|
$
|
4,213
|
$
|
2,620
|
61%
|
$
|
5,649
|
$
|
4,245
|
33%
|
|||||
Verticals earnings(a)
|
452
|
531
|
948
|
877
|
|||||||||||
Industrial operating earnings + Verticals earnings (Non-GAAP)
|
$
|
4,665
|
$
|
3,151
|
(48)%
|
$
|
6,597
|
$
|
5,123
|
29%
|
|||||
Earnings (loss) per share - diluted(b)
|
|||||||||||||||
Industrial operating EPS (Non-GAAP)
|
$
|
0.46
|
$
|
0.26
|
77%
|
$
|
0.61
|
$
|
0.42
|
45%
|
|||||
Adjustment: Verticals EPS
|
0.05
|
0.05
|
-%
|
0.10
|
0.09
|
11%
|
|||||||||
Industrial operating + Verticals EPS (Non-GAAP)
|
$
|
0.51
|
$
|
0.31
|
65%
|
$
|
0.71
|
$
|
0.51
|
39%
|
|||||
(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 June 30, 2016 and 2015, and $50 million and $83 million after tax in the six months ended June 30, 2016 and 2015, respectively.
|
(b)
|
Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.
|
INDUSTRIAL OPERATING + VERTICALS EARNINGS AND EPS(a)
|
|||||
Industrial operating &
Verticals $0.51
Non-operating pension &
other Capital $(0.15)
|
Industrial operating &
Verticals $0.31
Non-operating pension &
other Capital $(0.14)
|
||||
GAAP Continuing EPS
|
$0.36
|
$0.17
|
|||
Industrial operating &
Verticals $0.71
Non-operating pension &
other Capital $(0.33)
|
Industrial operating &
Verticals $0.51
Non-operating pension &
other Capital $(0.79)
|
||||
GAAP Continuing EPS
|
$0.38
|
$(0.29)
|
(a)
|
Earnings per share amounts are computed independently. As a result, the sum of per share amounts may not equal the total.
|
INDUSTRIAL OPERATING PROFIT AND OPERATING PROFIT MARGIN (EXCLUDING CERTAIN ITEMS)
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(Dollars in millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Revenues
|
|||||||||||
GE total revenues and other income (GAAP)
|
$
|
30,604
|
$
|
26,578
|
$
|
55,210
|
$
|
44,748
|
|||
Less: GE Capital loss from continuing operations
|
(600)
|
(332)
|
(1,492)
|
(6,053)
|
|||||||
GE revenues and other income excluding GE Capital loss (Industrial revenues)
|
$
|
31,204
|
$
|
26,910
|
$
|
56,702
|
$
|
50,801
|
|||
Less: gains
|
3,129
|
499
|
3,188
|
499
|
|||||||
Less: Alstom
|
3,171
|
-
|
5,984
|
-
|
|||||||
Adjusted Industrial revenues (Non-GAAP)
|
$
|
24,904
|
$
|
26,411
|
$
|
47,531
|
$
|
50,303
|
|||
Costs
|
|||||||||||
GE total costs and expenses (GAAP)
|
$
|
26,756
|
$
|
24,183
|
$
|
51,069
|
$
|
46,722
|
|||
Less: GE interest and other financial charges
|
567
|
414
|
1,007
|
803
|
|||||||
Industrial costs excluding interest and other financial charges
|
$
|
26,189
|
$
|
23,769
|
$
|
50,062
|
$
|
45,919
|
|||
Less: Alstom
|
3,033
|
-
|
5,867
|
-
|
|||||||
Less: non-operating pension costs (pre-tax)
|
511
|
689
|
1,023
|
1,384
|
|||||||
Less: restructuring and other charges
|
1,188
|
399
|
1,874
|
821
|
|||||||
Less: noncontrolling interests and 2015 GE Capital preferred stock dividends
|
82
|
29
|
199
|
155
|
|||||||
Adjusted Industrial costs (Non-GAAP)
|
$
|
21,375
|
$
|
22,652
|
$
|
41,099
|
$
|
43,559
|
|||
Industrial profit (loss) (GAAP)
|
$
|
5,015
|
$
|
3,141
|
$
|
6,640
|
$
|
4,882
|
|||
Industrial margins (GAAP)
|
16.1%
|
11.7%
|
11.7%
|
9.6%
|
|||||||
Industrial operating profit (Non-GAAP)
|
$
|
3,529
|
$
|
3,760
|
$
|
6,432
|
$
|
6,745
|
|||
Industrial operating profit margins (Non-GAAP)
|
14.2%
|
14.2%
|
13.5%
|
13.4%
|
|||||||
.
|
.
|
INDUSTRIAL SEGMENT OPERATING PROFIT AND OPERATING PROFIT MARGIN (EXCLUDING ALSTOM)
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(Dollars in millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Revenues
|
|||||||||||
Total industrial segment revenues (GAAP)
|
$
|
28,630
|
$
|
26,826
|
$
|
54,499
|
$
|
51,188
|
|||
Less: Alstom revenues
|
3,171
|
-
|
5,984
|
-
|
|||||||
Total industrial segment operating revenues excluding Alstom (Non-GAAP)
|
$
|
25,459
|
$
|
26,826
|
$
|
48,515
|
$
|
51,188
|
|||
Segment profit (loss)
|
|||||||||||
Total industrial segment operating profit (GAAP)
|
$
|
4,122
|
$
|
4,355
|
$
|
7,437
|
$
|
7,915
|
|||
Total industrial segment operating profit margin (GAAP)
|
14.4%
|
16.2%
|
13.6%
|
15.5%
|
|||||||
Less: Alstom profit (loss)
|
$
|
138
|
$
|
-
|
$
|
117
|
$
|
-
|
|||
Total industrial segment operating profit excluding Alstom (Non-GAAP)
|
$
|
3,984
|
$
|
4,355
|
$
|
7,319
|
$
|
7,915
|
|||
Total industrial segment operating profit margin excluding Alstom (Non-GAAP)
|
15.6%
|
16.2%
|
15.1%
|
15.5%
|
|||||||
.
|
.
|
INDUSTRIAL CASH FLOWS FROM OPERATING ACTIVITIES (INDUSTRIAL CFOA)
|
|||||||
AND INDUSTRIAL CFOA EXCLUDING TAXES RELATED TO THE APPLIANCES BUSINESS SALE
|
|||||||
Six months ended June 30
|
|||||||
(Dollars in millions)
|
2016
|
2015
|
V%
|
||||
Cash from GE's operating activities (continuing operations), as reported (GAAP)
|
$
|
10,689
|
$
|
3,950
|
F
|
||
Adjustments: dividends from GE Capital
|
11,000
|
450
|
|||||
Industrial CFOA (Non-GAAP)
|
$
|
(311)
|
$
|
3,500
|
U
|
||
Adjustment: taxes related to the Appliances business sale
|
700
|
-
|
|||||
Industrial CFOA excluding taxes related to the Appliances business sale (Non-GAAP)
|
$
|
389
|
$
|
3,500
|
U
|
||
CAPITAL ENDING NET INVESTMENT (ENI), EXCLUDING LIQUIDITY
|
|||||
(In billions)
|
June 30, 2016
|
June 30, 2015(b)
|
|||
Financial Services (GE Capital) total assets (GAAP)
|
$
|
219.4
|
$
|
463.3
|
|
Adjustment deferred income tax
|
5.2
|
-
|
|||
GE Capital total assets
|
224.6
|
463.3
|
|||
Less assets of discontinued operations
|
49.9
|
154.9
|
|||
Less non-interest bearing liabilities
|
43.9
|
51.2
|
|||
Capital ENI (Non-GAAP)
|
130.8
|
257.2
|
|||
Less liquidity(a)
|
51.4
|
77.9
|
|||
Capital ENI, excluding liquidity (Non-GAAP)
|
$
|
79.3
|
$
|
179.3
|
|
Discontinued operations, excluding liquidity
|
36.9
|
129.7
|
|||
Total ENI (excluding liquidity) including discontinued operations (Non-GAAP)
|
$
|
116.2
|
$
|
309.0
|
|
(a)
|
Liquidity includes cash and equivalents and $9.2 billion of high quality investments at June 30, 2016
|
(b)
|
As originally reported
|
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
|
||||||||||
Approximate
|
||||||||||
dollar value
|
||||||||||
Total number
|
of shares that
|
|||||||||
of shares
|
may yet be
|
|||||||||
purchased
|
purchased
|
|||||||||
as part of
|
under our
|
|||||||||
Total number
|
Average
|
our share
|
share
|
|||||||
of shares
|
price paid
|
repurchase
|
repurchase
|
|||||||
Period
|
purchased(a)
|
per share
|
program(b)
|
program(b)
|
||||||
(Shares in thousands)
|
||||||||||
2016
|
||||||||||
April
|
32,955
|
$
|
30.85
|
32,905
|
||||||
May
|
40,207
|
$
|
30.00
|
40,141
|
||||||
June(c)
|
179,462
|
$
|
29.92
|
179,384
|
||||||
Total
|
252,624
|
$
|
30.05
|
252,430
|
$
|
33.0
|
billion
|
|||
(a) | This category included 194 thousand shares repurchased from our various benefit plans. |
(b) | Shares were repurchased through the 2015 GE Share Repurchase Program (the Program). As of June 30, 2016, we were authorized to repurchase up to $50 billion of our common stock through 2018 and we had repurchased a total of approximately $17.0 billion under the Program. The Program is flexible and shares will be acquired with a combination of borrowings and free cash flow from the public markets and other sources, including GE Stock Direct, a stock purchase plan that is available to the public. The total amount remaining under our share repurchase program excludes an unsettled amount of $0.8 billion under an accelerated share repurchase (ASR) agreement. |
(c) | Includes 142,474 thousand shares repurchased at an average price of $29.83 per share pursuant to an ASR agreement. |
Statement of Earnings (Loss)
|
62
|
|||
Consolidated Statement of Comprehensive Income (Loss)
|
66
|
|||
Consolidated Statement of Changes in Shareowners' Equity
|
67
|
|||
Statement of Financial Position
|
68
|
|||
Statement of Cash Flows
|
70
|
|||
Notes to Consolidated Financial Statements
|
||||
1
|
Basis of Presentation and Summary of Significant Accounting Policies
|
72
|
||
2
|
Businesses Held for Sale and Discontinued Operations
|
73
|
||
3
|
Investment Securities
|
78
|
||
4
|
Inventories
|
81
|
||
5
|
GE Capital Financing Receivables and Allowance for Losses on Financing Receivables
|
81
|
||
6
|
Property, Plant and Equipment
|
82
|
||
7
|
Acquisitions, Goodwill and Other Intangible Assets
|
82
|
||
8
|
Contract Assets
|
85
|
||
9
|
Borrowings
|
86
|
||
10
|
Postretirement Benefit Plans
|
88
|
||
11
|
Income Taxes
|
89
|
||
12
|
Shareowners' Equity
|
90
|
||
13
|
Earnings Per Share Information
|
94
|
||
14
|
Fair Value Measurements
|
96
|
||
15
|
Financial Instruments
|
101
|
||
16
|
Variable Interest Entities
|
107
|
||
17
|
Intercompany Transactions
|
109
|
||
18
|
Guarantor Financial Information
|
110
|
||
19
|
Supplemental Information
|
116
|
||
STATEMENT OF EARNINGS (LOSS)
|
|||||
(UNAUDITED)
|
|||||
Three months ended June 30
|
|||||
General Electric Company
|
|||||
and consolidated affiliates
|
|||||
(In millions; per-share amounts in dollars)
|
2016
|
2015
|
|||
Revenues and other income
|
|||||
Sales of goods
|
$
|
18,865
|
$
|
18,543
|
|
Sales of services
|
9,163
|
7,513
|
|||
Other income
|
3,150
|
780
|
|||
GE Capital earnings (loss) from continuing operations
|
-
|
-
|
|||
GE Capital revenues from services
|
2,316
|
2,390
|
|||
Total revenues and other income
|
33,494
|
29,226
|
|||
Costs and expenses
|
|||||
Cost of goods sold
|
15,690
|
15,029
|
|||
Cost of services sold
|
6,693
|
5,543
|
|||
Selling, general and administrative expenses
|
4,883
|
4,385
|
|||
Interest and other financial charges
|
1,326
|
713
|
|||
Investment contracts, insurance losses and
|
|||||
insurance annuity benefits
|
776
|
657
|
|||
Other costs and expenses
|
303
|
287
|
|||
Total costs and expenses
|
29,670
|
26,614
|
|||
Earnings (loss) from continuing operations before income taxes
|
3,824
|
2,612
|
|||
Benefit (provision) for income taxes
|
(479)
|
(799)
|
|||
Earnings (loss) from continuing operations
|
3,345
|
1,813
|
|||
Earnings (loss) from discontinued operations, net of taxes (Note 2)
|
(541)
|
(2,947)
|
|||
Net earnings (loss)
|
2,804
|
(1,134)
|
|||
Less net earnings (loss) attributable to noncontrolling interests
|
(86)
|
225
|
|||
Net earnings (loss) attributable to the Company
|
2,890
|
(1,360)
|
|||
Preferred stock dividends
|
(152)
|
-
|
|||
Net earnings (loss) attributable to GE common shareowners
|
$
|
2,738
|
$
|
(1,360)
|
|
Amounts attributable to GE common shareowners
|
|||||
Earnings (loss) from continuing operations
|
$
|
3,345
|
$
|
1,813
|
|
Less net earnings (loss) attributable to noncontrolling interests,
|
|||||
continuing operations
|
(89)
|
133
|
|||
Earnings (loss) from continuing operations attributable to the Company
|
3,433
|
1,679
|
|||
Preferred stock dividends
|
(152)
|
-
|
|||
Earnings (loss) from continuing operations attributable
|
|||||
to GE common shareowners
|
3,281
|
1,679
|
|||
Earnings (loss) from discontinued operations, net of taxes
|
(541)
|
(2,947)
|
|||
Less net earnings (loss) attributable to
|
|||||
noncontrolling interests, discontinued operations
|
3
|
92
|
|||
Net earnings (loss) attributable to GE common shareowners
|
$
|
2,738
|
$
|
(1,360)
|
|
Per-share amounts (Note 13)
|
|||||
Earnings (loss) from continuing operations
|
|||||
Diluted earnings (loss) per share
|
$
|
0.36
|
$
|
0.17
|
|
Basic earnings (loss) per share
|
$
|
0.36
|
$
|
0.17
|
|
Net earnings (loss)
|
|||||
Diluted earnings (loss) per share
|
$
|
0.30
|
$
|
(0.13)
|
|
Basic earnings (loss) per share
|
$
|
0.30
|
$
|
(0.13)
|
|
Dividends declared per common share
|
$
|
0.23
|
$
|
0.23
|
|
STATEMENT OF EARNINGS (LOSS) (CONTINUED)
|
|||||||||||
(UNAUDITED)
|
|||||||||||
Three months ended June 30
|
|||||||||||
GE(a)
|
Financial Services (GE Capital)
|
||||||||||
(In millions; per-share amounts in dollars)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Revenues and other income
|
|||||||||||
Sales of goods
|
$
|
18,912
|
$
|
18,549
|
$
|
29
|
$
|
22
|
|||
Sales of services
|
9,238
|
7,592
|
-
|
-
|
|||||||
Other income
|
3,054
|
769
|
-
|
-
|
|||||||
GE Capital earnings (loss) from continuing operations
|
(600)
|
(332)
|
-
|
-
|
|||||||
GE Capital revenues from services
|
-
|
-
|
2,742
|
2,668
|
|||||||
Total revenues and other income
|
30,604
|
26,578
|
2,771
|
2,690
|
|||||||
Costs and expenses
|
|||||||||||
Cost of goods sold(b)
|
15,742
|
15,035
|
24
|
22
|
|||||||
Cost of services sold(b)
|
6,216
|
5,073
|
552
|
550
|
|||||||
Selling, general and administrative expenses
|
4,231
|
3,661
|
733
|
806
|
|||||||
Interest and other financial charges
|
567
|
414
|
958
|
423
|
|||||||
Investment contracts, insurance losses and
|
|||||||||||
insurance annuity benefits
|
-
|
-
|
815
|
706
|
|||||||
Other costs and expenses
|
-
|
-
|
313
|
300
|
|||||||
Total costs and expenses
|
26,756
|
24,183
|
3,394
|
2,805
|
|||||||
Earnings (loss) from continuing operations before income taxes
|
3,847
|
2,395
|
(623)
|
(115)
|
|||||||
Benefit (provision) for income taxes
|
(648)
|
(583)
|
168
|
(216)
|
|||||||
Earnings (loss) from continuing operations
|
3,200
|
1,811
|
(454)
|
(331)
|
|||||||
Earnings (loss) from discontinued operations, net of taxes (Note 2)
|
(544)
|
(3,039)
|
(541)
|
(2,944)
|
|||||||
Net earnings (loss)
|
2,656
|
(1,227)
|
(995)
|
(3,275)
|
|||||||
Less net earnings (loss) attributable to noncontrolling interests
|
(82)
|
132
|
(4)
|
93
|
|||||||
Net earnings (loss) attributable to the Company
|
2,738
|
(1,360)
|
(991)
|
(3,368)
|
|||||||
Preferred stock dividends
|
-
|
-
|
(152)
|
(161)
|
|||||||
Net earnings (loss) attributable to GE common shareowners
|
$
|
2,738
|
$
|
(1,360)
|
$
|
(1,143)
|
$
|
(3,529)
|
|||
Amounts attributable to GE common shareowners:
|
|||||||||||
Earnings (loss) from continuing operations
|
$
|
3,200
|
$
|
1,811
|
$
|
(454)
|
$
|
(331)
|
|||
Less net earnings (loss) attributable to noncontrolling interests,
|
|||||||||||
continuing operations
|
(82)
|
132
|
(7)
|
1
|
|||||||
Earnings (loss) from continuing operations attributable to the Company
|
3,281
|
1,679
|
(448)
|
(332)
|
|||||||
Preferred stock dividends
|
-
|
-
|
(152)
|
(161)
|
|||||||
Earnings (loss) from continuing operations attributable
|
|||||||||||
to GE common shareowners
|
3,281
|
1,679
|
(600)
|
(493)
|
|||||||
Earnings (loss) from discontinued operations, net of taxes
|
(544)
|
(3,039)
|
(541)
|
(2,944)
|
|||||||
Less net earnings (loss) attributable to
|
|||||||||||
noncontrolling interests, discontinued operations
|
-
|
-
|
3
|
92
|
|||||||
Net earnings (loss) attributable to GE common shareowners
|
$
|
2,738
|
$
|
(1,360)
|
$
|
(1,143)
|
$
|
(3,529)
|
|||
(a)
|
Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1.
|
(b)
|
Includes revisions to previously reported amounts, which increased GE cost of goods sold and decreased GE cost of services sold by $728 million and $1,129 million for the three and six months ended June 30, 2015, respectively.
|
STATEMENT OF EARNINGS (LOSS)
|
|||||
(UNAUDITED)
|
|||||
Six months ended June 30
|
|||||
General Electric Company
|
|||||
and consolidated affiliates
|
|||||
(In millions; per-share amounts in dollars)
|
2016
|
2015
|
|||
Revenues and other income
|
|||||
Sales of goods
|
$
|
36,073
|
$
|
35,143
|
|
Sales of services
|
17,269
|
14,596
|
|||
Other income
|
3,158
|
922
|
|||
GE Capital earnings (loss) from continuing operations
|
-
|
-
|
|||
GE Capital revenues from services
|
4,838
|
4,804
|
|||
Total revenues and other income
|
61,339
|
55,466
|
|||
Costs and expenses
|
|||||
Cost of goods sold
|
30,278
|
28,550
|
|||
Cost of services sold
|
12,466
|
10,705
|
|||
Selling, general and administrative expenses
|
9,491
|
8,800
|
|||
Interest and other financial charges
|
3,062
|
1,331
|
|||
Investment contracts, insurance losses and
|
|||||
insurance annuity benefits
|
1,417
|
1,270
|
|||
Other costs and expenses
|
562
|
578
|
|||
Total costs and expenses
|
57,276
|
51,233
|
|||
Earnings (loss) from continuing operations before income taxes
|
4,063
|
4,233
|
|||
Benefit (provision) for income taxes
|
(340)
|
(7,093)
|
|||
Earnings (loss) from continuing operations
|
3,723
|
(2,860)
|
|||
Earnings (loss) from discontinued operations, net of taxes (Note 2)
|
(849)
|
(11,883)
|
|||
Net earnings (loss)
|
2,874
|
(14,743)
|
|||
Less net earnings (loss) attributable to noncontrolling interests
|
(207)
|
190
|
|||
Net earnings (loss) attributable to the Company
|
3,081
|
(14,933)
|
|||
Preferred stock dividends
|
(441)
|
-
|
|||
Net earnings (loss) attributable to GE common shareowners
|
$
|
2,639
|
$
|
(14,933)
|
|
Amounts attributable to GE common shareowners
|
|||||
Earnings (loss) from continuing operations
|
$
|
3,723
|
$
|
(2,860)
|
|
Less net earnings (loss) attributable to noncontrolling interests,
|
|||||
continuing operations
|
(210)
|
9
|
|||
Earnings (loss) from continuing operations attributable to the Company
|
3,933
|
(2,869)
|
|||
Preferred stock dividends
|
(441)
|
-
|
|||
Earnings (loss) from continuing operations attributable
|
|||||
to GE common shareowners
|
3,492
|
(2,869)
|
|||
Earnings (loss) from discontinued operations, net of taxes
|
(849)
|
(11,883)
|
|||
Less net earnings (loss) attributable to noncontrolling interests,
|
|||||
discontinued operations
|
3
|
181
|
|||
Net earnings (loss) attributable to GE common shareowners
|
$
|
2,639
|
$
|
(14,933)
|
|
Per-share amounts (Note 13)
|
|||||
Earnings (loss) from continuing operations
|
|||||
Diluted earnings (loss) per share
|
$
|
0.38
|
$
|
(0.29)
|
|
Basic earnings (loss) per share
|
$
|
0.38
|
$
|
(0.29)
|
|
Net earnings (loss)
|
|||||
Diluted earnings (loss) per share
|
$
|
0.28
|
$
|
(1.48)
|
|
Basic earnings (loss) per share
|
$
|
0.29
|
$
|
(1.48)
|
|
Dividends declared per common share
|
$
|
0.46
|
$
|
0.46
|
|
STATEMENT OF EARNINGS (LOSS) (CONTINUED)
|
|||||||||||
(UNAUDITED)
|
|||||||||||
Six months ended June 30
|
|||||||||||
GE(a)
|
Financial Services (GE Capital)
|
||||||||||
(In millions; per-share amounts in dollars)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Revenues and other income
|
|||||||||||
Sales of goods
|
$
|
36,124
|
$
|
35,197
|
$
|
54
|
$
|
43
|
|||
Sales of services
|
17,432
|
14,784
|
-
|
-
|
|||||||
Other income
|
3,146
|
822
|
-
|
-
|
|||||||
GE Capital earnings (loss) from continuing operations
|
(1,492)
|
(6,053)
|
-
|
-
|
|||||||
GE Capital revenues from services
|
-
|
-
|
5,602
|
5,513
|
|||||||
Total revenues and other income
|
55,210
|
44,748
|
5,656
|
5,556
|
|||||||
Costs and expenses
|
|||||||||||
Cost of goods sold(b)
|
30,339
|
28,606
|
44
|
40
|
|||||||
Cost of services sold(b)
|
11,509
|
9,827
|
1,120
|
1,066
|
|||||||
Selling, general and administrative expenses
|
8,214
|
7,486
|
1,607
|
1,597
|
|||||||
Interest and other financial charges
|
1,007
|
803
|
2,389
|
762
|
|||||||
Investment contracts, insurance losses and
|
|||||||||||
insurance annuity benefits
|
-
|
-
|
1,486
|
1,347
|
|||||||
Other costs and expenses
|
-
|
-
|
581
|
590
|
|||||||
Total costs and expenses
|
51,069
|
46,722
|
7,227
|
5,402
|
|||||||
Earnings (loss) from continuing operations before income taxes
|
4,141
|
(1,974)
|
(1,571)
|
153
|
|||||||
Benefit (provision) for income taxes
|
(849)
|
(890)
|
509
|
(6,203)
|
|||||||
Earnings (loss) from continuing operations
|
3,292
|
(2,864)
|
(1,062)
|
(6,050)
|
|||||||
Earnings (loss) from discontinued operations, net of taxes (Note 2)
|
(852)
|
(12,064)
|
(849)
|
(11,879)
|
|||||||
Net earnings (loss)
|
2,440
|
(14,927)
|
(1,911)
|
(17,929)
|
|||||||
Less net earnings (loss) attributable to noncontrolling interests
|
(199)
|
6
|
(8)
|
184
|
|||||||
Net earnings (loss) attributable to the Company
|
2,639
|
(14,933)
|
(1,903)
|
(18,113)
|
|||||||
Preferred stock dividends
|
-
|
-
|
(441)
|
(161)
|
|||||||
Net earnings (loss) attributable to GE common shareowners
|
$
|
2,639
|
$
|
(14,933)
|
$
|
(2,344)
|
$
|
(18,274)
|
|||
Amounts attributable to GE common shareowners:
|
|||||||||||
Earnings (loss) from continuing operations
|
$
|
3,292
|
$
|
(2,864)
|
$
|
(1,062)
|
$
|
(6,050)
|
|||
Less net earnings (loss) attributable to noncontrolling interests,
|
|||||||||||
continuing operations
|
(199)
|
6
|
(11)
|
3
|
|||||||
Earnings (loss) from continuing operations attributable to the Company
|
3,492
|
(2,869)
|
(1,051)
|
(6,053)
|
|||||||
Preferred stock dividends
|
-
|
-
|
(441)
|
(161)
|
|||||||
Earnings (loss) from continuing operations attributable
|
|||||||||||
to GE common shareowners
|
3,492
|
(2,869)
|
(1,492)
|
(6,215)
|
|||||||
Earnings (loss) from discontinued operations, net of taxes
|
(852)
|
(12,064)
|
(849)
|
(11,879)
|
|||||||
Less net earnings (loss) attributable to noncontrolling interests,
|
|||||||||||
discontinued operations
|
-
|
-
|
3
|
181
|
|||||||
Net earnings (loss) attributable to GE common shareowners
|
$
|
2,639
|
$
|
(14,933)
|
$
|
(2,344)
|
$
|
(18,274)
|
|||
(a)
|
Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1.
|
(b)
|
Includes revisions to previously reported amounts, which increased GE cost of goods sold and decreased GE cost of services sold by $728 million and $1,129 million for the three and six months ended June 30, 2015, respectively.
|
GENERAL ELECTRIC COMPANY AND CONSOLIDATED AFFILIATES
|
|||||||||||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
|
|||||||||||
(UNAUDITED)
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Net earnings (loss)
|
$
|
2,804
|
$
|
(1,134)
|
$
|
2,874
|
$
|
(14,743)
|
|||
Less net earnings (loss) attributable to noncontrolling interests
|
(86)
|
225
|
(207)
|
190
|
|||||||
Net earnings (loss) attributable to the Company
|
$
|
2,890
|
$
|
(1,360)
|
$
|
3,081
|
$
|
(14,933)
|
|||
Other comprehensive income (loss)
|
|||||||||||
Investment securities
|
$
|
397
|
$
|
(682)
|
$
|
617
|
$
|
(449)
|
|||
Currency translation adjustments
|
55
|
1,815
|
57
|
(3,521)
|
|||||||
Cash flow hedges
|
(25)
|
86
|
30
|
40
|
|||||||
Benefit plans
|
382
|
2,951
|
933
|
3,860
|
|||||||
Other comprehensive income (loss)
|
810
|
4,170
|
1,636
|
(70)
|
|||||||
Less other comprehensive income (loss)
|
|||||||||||
attributable to noncontrolling interests
|
3
|
12
|
6
|
(36)
|
|||||||
Other comprehensive income (loss) attributable to the Company
|
$
|
807
|
$
|
4,158
|
$
|
1,631
|
$
|
(34)
|
|||
Comprehensive income (loss)
|
$
|
3,614
|
$
|
3,035
|
$
|
4,510
|
$
|
(14,813)
|
|||
Less comprehensive income (loss) attributable to noncontrolling interests
|
(82)
|
237
|
(201)
|
154
|
|||||||
Comprehensive income (loss) attributable to the Company
|
$
|
3,696
|
$
|
2,798
|
$
|
4,711
|
$
|
(14,967)
|
|||
GENERAL ELECTRIC COMPANY AND CONSOLIDATED AFFILIATES
|
|||||
CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS' EQUITY
|
|||||
(UNAUDITED)
|
|||||
Six months ended June 30
|
|||||
(In millions)
|
2016
|
2015
|
|||
Shareowners' equity balance at January 1
|
$
|
98,274
|
$
|
128,159
|
|
Net earnings (loss) attributable to the Company
|
3,081
|
(14,933)
|
|||
Dividends and other transactions with shareowners
|
(4,680)
|
(4,644)
|
|||
Redemption value adjustment for redeemable noncontrolling interests
|
(110)
|
(1)
|
|||
Other comprehensive income (loss) attributable to the Company
|
1,631
|
(34)
|
|||
Net sales (purchases) of shares for treasury
|
(12,585)
|
1,042
|
|||
Changes in other capital
|
(618)
|
(86)
|
|||
Ending balance at June 30
|
84,991
|
109,503
|
|||
Noncontrolling interests
|
1,693
|
8,776
|
|||
Total equity balance at June 30
|
$
|
86,684
|
$
|
118,279
|
|
STATEMENT OF FINANCIAL POSITION
|
|||||
General Electric Company
|
|||||
and consolidated affiliates
|
|||||
(In millions, except share amounts)
|
June 30, 2016
|
December 31, 2015
|
|||
(Unaudited)
|
|||||
Assets
|
|||||
Cash and equivalents
|
$
|
52,123
|
$
|
70,483
|
|
Investment securities (Note 3)
|
39,720
|
31,973
|
|||
Current receivables
|
25,128
|
27,022
|
|||
Inventories (Note 4)
|
24,723
|
22,515
|
|||
Financing receivables – net (Note 5)
|
12,001
|
12,052
|
|||
Other GE Capital receivables
|
6,684
|
6,782
|
|||
Property, plant and equipment – net (Note 6)
|
50,436
|
54,095
|
|||
Receivable from GE Capital (debt assumption)
|
-
|
-
|
|||
Investment in GE Capital
|
-
|
-
|
|||
Goodwill (Note 7)
|
67,097
|
65,526
|
|||
Other intangible assets – net (Note 7)
|
16,650
|
17,797
|
|||
Contract assets (Note 8)
|
23,458
|
21,156
|
|||
All other assets
|
31,274
|
36,797
|
|||
Deferred income taxes (Note 11)
|
2,242
|
3,105
|
|||
Assets of businesses held for sale (Note 2)
|
59
|
2,818
|
|||
Assets of discontinued operations (Note 2)
|
49,865
|
120,951
|
|||
Total assets(a)
|
$
|
401,461
|
$
|
493,071
|
|
Liabilities and equity
|
|||||
Short-term borrowings (Note 9)
|
$
|
31,927
|
$
|
49,860
|
|
Accounts payable, principally trade accounts
|
13,115
|
13,680
|
|||
Progress collections and price adjustments accrued
|
16,218
|
15,776
|
|||
Dividends payable
|
2,105
|
2,167
|
|||
Other GE current liabilities
|
20,420
|
23,597
|
|||
Non-recourse borrowings of consolidated securitization entities (Note 9)
|
2,005
|
3,083
|
|||
Long-term borrowings (Note 9)
|
122,504
|
144,659
|
|||
Investment contracts, insurance liabilities and insurance annuity benefits
|
27,056
|
25,692
|
|||
Non-current compensation and benefits
|
40,445
|
40,487
|
|||
All other liabilities
|
21,475
|
23,611
|
|||
Liabilities of businesses held for sale (Note 2)
|
56
|
861
|
|||
Liabilities of discontinued operations (Note 2)
|
14,384
|
46,487
|
|||
Total liabilities(a)
|
311,708
|
389,961
|
|||
Redeemable noncontrolling interests (Note 12)
|
3,070
|
2,972
|
|||
Preferred stock (5,944,250 shares outstanding at both June 30, 2016
|
|||||
and December 31, 2015)
|
6
|
6
|
|||
Common stock (8,961,233,000 and 9,379,288,000 shares outstanding
|
|||||
at June 30, 2016 and December 31, 2015, respectively)
|
702
|
702
|
|||
Accumulated other comprehensive income (loss) – net attributable to GE(b)
|
|||||
Investment securities
|
1,077
|
460
|
|||
Currency translation adjustments
|
(5,448)
|
(5,499)
|
|||
Cash flow hedges
|
(51)
|
(80)
|
|||
Benefit plans
|
(10,476)
|
(11,410)
|
|||
Other capital
|
36,995
|
37,613
|
|||
Retained earnings
|
138,310
|
140,020
|
|||
Less common stock held in treasury
|
(76,124)
|
(63,539)
|
|||
Total GE shareowners' equity
|
84,991
|
98,274
|
|||
Noncontrolling interests(c) (Note 12)
|
1,693
|
1,864
|
|||
Total equity (Note 12)
|
86,684
|
100,138
|
|||
Total liabilities, redeemable noncontrolling interests and equity
|
$
|
401,461
|
$
|
493,071
|
|
(b) | The sum of accumulated other comprehensive income (loss) (AOCI) attributable to the Company was $(14,898) million and $(16,529) million at June 30, 2016 and December 31, 2015, respectively. |
(c) | Included AOCI attributable to noncontrolling interests of $(259) million and $(264) million at June 30, 2016 and December 31, 2015, respectively. |
STATEMENT OF FINANCIAL POSITION (CONTINUED)
|
|||||||||||
GE(a)
|
Financial Services (GE Capital)
|
||||||||||
(In millions, except share amounts)
|
June 30, 2016
|
December 31, 2015
|
June 30, 2016
|
December 31, 2015
|
|||||||
(Unaudited)
|
(Unaudited)
|
||||||||||
Assets
|
|||||||||||
Cash and equivalents
|
$
|
9,931
|
$
|
10,372
|
$
|
42,192
|
$
|
60,111
|
|||
Investment securities (Note 3)
|
110
|
151
|
39,615
|
31,827
|
|||||||
Current receivables
|
13,992
|
14,707
|
-
|
-
|
|||||||
Inventories (Note 4)
|
24,652
|
22,449
|
71
|
66
|
|||||||
Financing receivables - net (Note 5)
|
-
|
-
|
23,998
|
25,003
|
|||||||
Other GE Capital receivables
|
-
|
-
|
14,544
|
15,455
|
|||||||
Property, plant and equipment – net (Note 6)
|
19,540
|
20,145
|
31,628
|
34,781
|
|||||||
Receivable from GE Capital (debt assumption)(b)
|
65,186
|
84,704
|
-
|
-
|
|||||||
Investment in GE Capital
|
33,837
|
46,227
|
-
|
-
|
|||||||
Goodwill (Note 7)
|
64,727
|
63,157
|
2,370
|
2,370
|
|||||||
Other intangible assets – net (Note 7)
|
16,294
|
17,365
|
356
|
435
|
|||||||
Contract assets (Note 8)
|
23,458
|
21,156
|
-
|
-
|
|||||||
All other assets
|
12,569
|
12,813
|
19,930
|
25,081
|
|||||||
Deferred income taxes (Note 11)
|
7,451
|
7,666
|
(5,208)
|
(4,561)
|
|||||||
Assets of businesses held for sale (Note 2)
|
59
|
2,818
|
-
|
-
|
|||||||
Assets of discontinued operations (Note 2)
|
9
|
9
|
49,856
|
120,942
|
|||||||
Total assets
|
$
|
291,814
|
$
|
323,737
|
$
|
219,352
|
$
|
311,508
|
|||
Liabilities and equity
|
|||||||||||
Short-term borrowings (Note 9)(b)
|
$
|
19,384
|
$
|
19,792
|
$
|
24,683
|
$
|
48,617
|
|||
Accounts payable, principally trade accounts
|
18,103
|
19,250
|
1,853
|
1,745
|
|||||||
Progress collections and price adjustments accrued
|
16,218
|
15,776
|
-
|
-
|
|||||||
Dividends payable
|
2,105
|
2,167
|
-
|
-
|
|||||||
Other GE current liabilities
|
20,420
|
23,595
|
-
|
-
|
|||||||
Non-recourse borrowings of consolidated securitization entities (Note 9)
|
-
|
-
|
2,005
|
3,083
|
|||||||
Long-term borrowings (Note9)(b)
|
70,134
|
83,309
|
106,636
|
128,478
|
|||||||
Investment contracts, insurance liabilities and insurance annuity benefits
|
-
|
-
|
27,619
|
26,155
|
|||||||
Non-current compensation and benefits
|
39,450
|
39,472
|
985
|
1,006
|
|||||||
All other liabilities
|
16,514
|
16,217
|
7,028
|
9,351
|
|||||||
Liabilities of businesses held for sale (Note 2)
|
56
|
1,409
|
-
|
-
|
|||||||
Liabilities of discontinued operations (Note 2)
|
129
|
128
|
14,255
|
46,359
|
|||||||
Total liabilities
|
202,511
|
221,115
|
185,064
|
264,795
|
|||||||
Redeemable noncontrolling interests (Note 12)
|
3,070
|
2,972
|
-
|
-
|
|||||||
Preferred stock (5,944,250 shares outstanding at both June 30, 2016
|
|||||||||||
and December 31, 2015)
|
6
|
6
|
6
|
6
|
|||||||
Common stock (8,961,233,000 and 9,379,288,000 shares outstanding
|
|||||||||||
at June 30, 2016 and December 31, 2015, respectively)
|
702
|
702
|
-
|
-
|
|||||||
Accumulated other comprehensive income (loss) - net attributable to GE
|
|||||||||||
Investment securities
|
1,077
|
460
|
1,077
|
456
|
|||||||
Currency translation adjustments
|
(5,448)
|
(5,499)
|
(923)
|
(898)
|
|||||||
Cash flow hedges
|
(51)
|
(80)
|
(37)
|
(112)
|
|||||||
Benefit plans
|
(10,476)
|
(11,410)
|
(530)
|
(540)
|
|||||||
Other capital
|
36,995
|
37,613
|
12,602
|
12,326
|
|||||||
Retained earnings
|
138,310
|
140,020
|
21,642
|
34,988
|
|||||||
Less common stock held in treasury
|
(76,124)
|
(63,539)
|
-
|
-
|
|||||||
Total GE shareowners' equity
|
84,991
|
98,274
|
33,837
|
46,227
|
|||||||
Noncontrolling interests (Note 12)
|
1,242
|
1,378
|
451
|
486
|
|||||||
Total equity (Notes 12)
|
86,233
|
99,651
|
34,288
|
46,713
|
|||||||
Total liabilities, redeemable noncontrolling interests and equity
|
$
|
291,814
|
$
|
323,737
|
$
|
219,352
|
$
|
311,508
|
|||
(a)
|
STATEMENT OF CASH FLOWS
|
|||||
(UNAUDITED)
|
|||||
Six months ended June 30
|
|||||
General Electric Company
|
|||||
and consolidated affiliates
|
|||||
(In millions)
|
2016
|
2015
|
|||
Cash flows – operating activities
|
|||||
Net earnings (loss)
|
$
|
2,874
|
$
|
(14,743)
|
|
Less net earnings (loss) attributable to noncontrolling interests
|
(207)
|
190
|
|||
Net earnings (loss) attributable to the Company
|
3,081
|
(14,933)
|
|||
(Earnings) loss from discontinued operations
|
849
|
11,883
|
|||
Adjustments to reconcile net earnings (loss) attributable to the
|
|||||
Company to cash provided from operating activities
|
|||||
Depreciation and amortization of property, plant and equipment
|
2,505
|
2,289
|
|||
(Earnings) loss from continuing operations retained by GE Capital
|
-
|
-
|
|||
Deferred income taxes
|
652
|
2,310
|
|||
Decrease (increase) in GE current receivables
|
1,879
|
1,603
|
|||
Decrease (increase) in inventories
|
(2,629)
|
(1,149)
|
|||
Increase (decrease) in accounts payable
|
132
|
767
|
|||
Increase (decrease) in GE progress collections
|
510
|
(1,076)
|
|||
All other operating activities
|
(5,043)
|
1,238
|
|||
Cash from (used for) operating activities – continuing operations
|
1,936
|
2,932
|
|||
Cash from (used for) operating activities – discontinued operations
|
(4,849)
|
9,454
|
|||
Cash from (used for) operating activities
|
(2,913)
|
12,385
|
|||
Cash flows – investing activities
|
|||||
Additions to property, plant and equipment
|
(3,052)
|
(3,223)
|
|||
Dispositions of property, plant and equipment
|
1,222
|
1,281
|
|||
Net decrease (increase) in GE Capital financing receivables
|
(1,146)
|
437
|
|||
Proceeds from sale of discontinued operations
|
42,874
|
17,528
|
|||
Proceeds from principal business dispositions
|
5,609
|
222
|
|||
Net cash from (payments for) principal businesses purchased
|
(206)
|
(1,723)
|
|||
All other investing activities
|
(2,887)
|
10,233
|
|||
Cash from (used for) investing activities – continuing operations
|
42,414
|
24,756
|
|||
Cash from (used for) investing activities – discontinued operations
|
(10,646)
|
(8,209)
|
|||
Cash from (used for) investing activities
|
31,768
|
16,547
|
|||
Cash flows – financing activities
|
|||||
Net increase (decrease) in borrowings (maturities of 90 days or less)
|
758
|
(2,072)
|
|||
Newly issued debt (maturities longer than 90 days)
|
855
|
13,136
|
|||
Repayments and other debt reductions (maturities longer than 90 days)
|
(45,467)
|
(23,238)
|
|||
Net dispositions (purchases) of GE shares for treasury
|
(14,292)
|
499
|
|||
Dividends paid to shareowners
|
(4,508)
|
(4,635)
|
|||
All other financing activities
|
(31)
|
(159)
|
|||
Cash from (used for) financing activities – continuing operations
|
(62,685)
|
(16,470)
|
|||
Cash from (used for) financing activities – discontinued operations
|
(711)
|
(2,240)
|
|||
Cash from (used for) financing activities
|
(63,396)
|
(18,710)
|
|||
Effect of currency exchange rate changes on cash and equivalents
|
(24)
|
(2,887)
|
|||
Increase (decrease) in cash and equivalents
|
(34,565)
|
7,336
|
|||
Cash and equivalents at beginning of year
|
90,878
|
91,017
|
|||
Cash and equivalents at June 30
|
56,313
|
98,353
|
|||
Less cash and equivalents of discontinued operations at June 30
|
4,190
|
19,992
|
|||
Cash and equivalents of continuing operations at June 30
|
$
|
52,123
|
$
|
78,360
|
|
STATEMENT OF CASH FLOWS (CONTINUED)
|
|||||||||||
(UNAUDITED)
|
|||||||||||
Six months ended June 30
|
|||||||||||
GE(a)
|
Financial Services (GE Capital)
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Cash flows – operating activities
|
|||||||||||
Net earnings (loss)
|
$
|
2,440
|
$
|
(14,927)
|
$
|
(1,911)
|
$
|
(17,929)
|
|||
Less net earnings (loss) attributable to noncontrolling interests
|
(199)
|
6
|
(8)
|
184
|
|||||||
Net earnings (loss) attributable to the Company
|
2,639
|
(14,933)
|
(1,903)
|
(18,113)
|
|||||||
(Earnings) loss from discontinued operations
|
852
|
12,064
|
849
|
11,879
|
|||||||
Adjustments to reconcile net earnings (loss) attributable to the
|
|||||||||||
Company to cash provided from operating activities
|
|||||||||||
Depreciation and amortization of property, plant and equipment
|
1,300
|
1,157
|
1,191
|
1,142
|
|||||||
(Earnings) loss from continuing operations retained by GE Capital(b)
|
12,496
|
6,685
|
-
|
-
|
|||||||
Deferred income taxes
|
273
|
(102)
|
379
|
2,412
|
|||||||
Decrease (increase) in GE current receivables
|
280
|
(44)
|
-
|
-
|
|||||||
Decrease (increase) in inventories
|
(2,623)
|
(1,135)
|
6
|
3
|
|||||||
Increase (decrease) in accounts payable
|
(30)
|
219
|
10
|
338
|
|||||||
Increase (decrease) in GE progress collections
|
510
|
(1,089)
|
-
|
-
|
|||||||
All other operating activities
|
(5,009)
|
1,127
|
(91)
|
218
|
|||||||
Cash from (used for) operating activities – continuing operations
|
10,689
|
3,950
|
440
|
(2,122)
|
|||||||
Cash from (used for) operating activities – discontinued operations
|
-
|
(11)
|
(4,848)
|
9,465
|
|||||||
Cash from (used for) operating activities
|
10,689
|
3,939
|
(4,408)
|
7,343
|
|||||||
Cash flows – investing activities
|
|||||||||||
Additions to property, plant and equipment
|
(1,940)
|
(1,889)
|
(1,264)
|
(1,680)
|
|||||||
Dispositions of property, plant and equipment
|
539
|
376
|
865
|
1,090
|
|||||||
Net decrease (increase) in GE Capital financing receivables
|
-
|
-
|
1,191
|
1,827
|
|||||||
Proceeds from sale of discontinued operations
|
-
|
-
|
42,874
|
17,528
|
|||||||
Proceeds from principal business dispositions
|
4,836
|
222
|
-
|
-
|
|||||||
Net cash from (payments for) principal businesses purchased
|
(206)
|
(46)
|
-
|
(1,677)
|
|||||||
All other investing activities
|
(1,054)
|
(783)
|
(6,345)
|
11,636
|
|||||||
Cash from (used for) investing activities – continuing operations
|
2,175
|
(2,119)
|
37,321
|
28,724
|
|||||||
Cash from (used for) investing activities – discontinued operations
|
-
|
10
|
(10,646)
|
(8,219)
|
|||||||
Cash from (used for) investing activities
|
2,175
|
(2,110)
|
26,675
|
20,505
|
|||||||
Cash flows – financing activities
|
|||||||||||
Net increase (decrease) in borrowings (maturities of 90 days or less)
|
601
|
248
|
31
|
(2,614)
|
|||||||
Newly issued debt (maturities longer than 90 days)
|
5,126
|
3,654
|
715
|
9,482
|
|||||||
Repayments and other debt reductions (maturities longer than 90 days)
|
(179)
|
(128)
|
(45,288)
|
(23,111)
|
|||||||
Net dispositions (purchases) of GE shares for treasury
|
(14,292)
|
499
|
-
|
-
|
|||||||
Dividends paid to shareowners
|
(4,324)
|
(4,634)
|
(11,184)
|
(611)
|
|||||||
All other financing activities
|
(108)
|
190
|
(57)
|
(189)
|
|||||||
Cash from (used for) financing activities – continuing operations
|
(13,177)
|
(171)
|
(55,783)
|
(17,043)
|
|||||||
Cash from (used for) financing activities – discontinued operations
|
-
|
-
|
(711)
|
(2,240)
|
|||||||
Cash from (used for) financing activities
|
(13,177)
|
(171)
|
(56,494)
|
(19,283)
|
|||||||
Effect of currency exchange rate changes on cash and equivalents
|
(127)
|
(553)
|
103
|
(2,334)
|
|||||||
Increase (decrease) in cash and equivalents
|
(440)
|
1,106
|
(34,124)
|
6,231
|
|||||||
Cash and equivalents at beginning of year
|
10,372
|
15,916
|
80,506
|
75,100
|
|||||||
Cash and equivalents at June 30
|
9,931
|
17,022
|
46,382
|
81,331
|
|||||||
Less cash and equivalents of discontinued operations at June 30
|
-
|
-
|
4,190
|
19,992
|
|||||||
Cash and equivalents of continuing operations at June 30
|
$
|
9,931
|
$
|
17,022
|
$
|
42,192
|
$
|
61,339
|
|||
(a) | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. |
(b) | Represents GE Capital earnings/loss from continuing operations attributable to the Company, net of GE Capital dividends paid to GE. |
FINANCIAL INFORMATION FOR ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE
|
||||||
(In millions)
|
June 30, 2016
|
|
December 31, 2015
|
|||
|
||||||
Assets
|
||||||
Current receivables
|
$
|
35
|
$
|
79
|
(a)
|
|
Inventories
|
-
|
583
|
||||
Property, plant, and equipment – net
|
12
|
1,208
|
||||
Goodwill
|
-
|
370
|
||||
Other intangible assets – net
|
6
|
162
|
||||
Other
|
|
6
|
|
|
416
|
|
Assets of businesses held for sale
|
$
|
59
|
|
$
|
2,818
|
|
|
|
|
|
|||
Liabilities
|
|
|
|
|||
Accounts payable
|
$
|
6
|
$
|
503
|
(a)
|
|
Other current liabilities
|
32
|
325
|
||||
Other
|
17
|
33
|
||||
Liabilities of businesses held for sale
|
$
|
56
|
$
|
861
|
||
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Operations
|
|||||||||||
Total revenues and other income (loss)
|
$
|
568
|
$
|
6,829
|
$
|
1,861
|
$
|
12,289
|
|||
Earnings (loss) from discontinued operations before income taxes
|
$
|
(240)
|
$
|
1,950
|
$
|
(160)
|
$
|
(2,743)
|
|||
Benefit (provision) for income taxes
|
170
|
(493)
|
182
|
442
|
|||||||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(70)
|
$
|
1,457
|
$
|
22
|
$
|
(2,301)
|
|||
Disposal
|
|||||||||||
Gain (loss) on disposal before income taxes
|
$
|
(295)
|
$
|
(3,384)
|
$
|
(540)
|
$
|
(7,036)
|
|||
Benefit (provision) for income taxes
|
(177)
|
(1,021)
|
(331)
|
(2,546)
|
|||||||
Gain (loss) on disposal, net of taxes
|
$
|
(472)
|
$
|
(4,405)
|
$
|
(871)
|
$
|
(9,582)
|
|||
Earnings (loss) from discontinued operations, net of taxes(a)(b)
|
$
|
(541)
|
$
|
(2,947)
|
$
|
(849)
|
$
|
(11,883)
|
|||
(b) | Earnings (loss) from discontinued operations attributable to the Company, before income taxes, was $(537) million and $(1,525) million for the three months ended June 30, 2016 and 2015, respectively, and $(703) million and $(9,960) million for the six months ended June 30, 2016 and 2015, respectively. |
(In millions)
|
June 30, 2016
|
December 31, 2015
|
|||||||||
Assets
|
|||||||||||
Cash and equivalents
|
$
|
4,190
|
$
|
20,395
|
|||||||
Investment securities
|
6,141
|
8,478
|
|||||||||
Financing receivables – net
|
1,994
|
3,205
|
|||||||||
Other receivables
|
881
|
1,221
|
|||||||||
Property, plant and equipment – net
|
845
|
7,537
|
|||||||||
Goodwill
|
1,591
|
7,764
|
|||||||||
Other intangible assets - net
|
34
|
80
|
|||||||||
Deferred income taxes
|
2,101
|
2,447
|
|||||||||
Financing receivables held for sale
|
31,106
|
69,847
|
|||||||||
Valuation allowance on disposal group classified as discontinued operations
|
(3,062)
|
(6,374)
|
|||||||||
Other
|
4,044
|
6,350
|
|||||||||
Assets of discontinued operations
|
$
|
49,865
|
$
|
120,951
|
|||||||
Liabilities
|
|||||||||||
Short-term borrowings
|
$
|
609
|
$
|
739
|
|||||||
Accounts payable
|
1,352
|
2,870
|
|||||||||
Non-recourse borrowings
|
40
|
3,994
|
|||||||||
Bank deposits
|
4,545
|
25,613
|
|||||||||
Long-term borrowings
|
558
|
730
|
|||||||||
All other liabilities
|
6,983
|
11,053
|
|||||||||
Deferred income taxes
|
248
|
1,437
|
|||||||||
Other
|
49
|
52
|
|||||||||
Liabilities of discontinued operations
|
$
|
14,384
|
$
|
46,487
|
FINANCIAL INFORMATION FOR CONSUMER
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Operations
|
|||||||||||
Total revenues and other income (loss)
|
$
|
258
|
$
|
3,527
|
$
|
685
|
$
|
5,585
|
|||
Interest
|
$
|
(46)
|
$
|
(573)
|
$
|
(97)
|
$
|
(1,184)
|
|||
Selling, general, and administrative expenses
|
(158)
|
(1,104)
|
(335)
|
(2,172)
|
|||||||
Cost of services sold
|
-
|
-
|
-
|
-
|
|||||||
Provision for losses on financing receivables
|
-
|
(761)
|
-
|
(3,869)
|
|||||||
Investment contracts, insurance losses and insurance annuity benefits
|
(1)
|
(4)
|
(1)
|
(6)
|
|||||||
Other costs and expenses
|
(62)
|
(114)
|
(64)
|
(240)
|
|||||||
Earnings (loss) from discontinued operations, before income taxes
|
(9)
|
971
|
188
|
(1,886)
|
|||||||
Benefit (provision) for income taxes
|
-
|
(168)
|
(101)
|
(8)
|
|||||||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(9)
|
$
|
803
|
$
|
87
|
$
|
(1,894)
|
|||
Disposal
|
|||||||||||
Gain (loss) on disposal before income taxes
|
$
|
164
|
$
|
-
|
$
|
153
|
$
|
-
|
|||
Benefit (provision) for income taxes
|
(164)
|
-
|
(240)
|
-
|
|||||||
Gain (loss) on disposal, net of taxes
|
$
|
-
|
$
|
-
|
$
|
(87)
|
$
|
-
|
|||
Earnings (loss) from discontinued operations, net of taxes(a)
|
$
|
(9)
|
$
|
803
|
$
|
-
|
$
|
(1,894)
|
|||
FINANCIAL INFORMATION FOR COMMERCIAL LENDING AND LEASING
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Operations
|
|||||||||||
Total revenues and other income (loss)
|
$
|
314
|
$
|
3,070
|
$
|
1,201
|
$
|
5,973
|
|||
Interest
|
$
|
(126)
|
$
|
(641)
|
$
|
(403)
|
$
|
(1,343)
|
|||
Selling, general and administrative expenses
|
(421)
|
(1,046)
|
(1,046)
|
(1,942)
|
|||||||
Cost of services sold
|
-
|
(403)
|
-
|
(1,735)
|
|||||||
Provision for losses on financing receivables
|
-
|
(13)
|
(3)
|
(1,757)
|
|||||||
Other costs and expenses
|
(23)
|
1
|
(15)
|
(96)
|
|||||||
Earnings (loss) from discontinued operations, before income taxes
|
(256)
|
967
|
(265)
|
(900)
|
|||||||
Benefit (provision) for income taxes
|
140
|
(309)
|
214
|
315
|
|||||||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(116)
|
$
|
658
|
$
|
(51)
|
$
|
(585)
|
|||
Disposal
|
|||||||||||
Gain (loss) on disposal before income taxes
|
$
|
(465)
|
$
|
(3,380)
|
$
|
(630)
|
$
|
(5,225)
|
|||
Benefit (provision) for income taxes
|
(10)
|
(949)
|
(154)
|
(1,927)
|
|||||||
Gain (loss) on disposal, net of taxes
|
$
|
(475)
|
$
|
(4,329)
|
$
|
(784)
|
$
|
(7,152)
|
|||
Earnings (loss) from discontinued operations, net of taxes(a)
|
$
|
(591)
|
$
|
(3,671)
|
$
|
(835)
|
$
|
(7,737)
|
|||
FINANCIAL INFORMATION FOR REAL ESTATE
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Operations
|
|||||||||||
Total revenues and other income (loss)
|
$
|
15
|
$
|
313
|
$
|
25
|
$
|
812
|
|||
Interest
|
$
|
(13)
|
$
|
(137)
|
$
|
(35)
|
$
|
(373)
|
|||
Selling, general and administrative
|
(24)
|
(130)
|
(77)
|
(224)
|
|||||||
Cost of services sold
|
-
|
-
|
-
|
(5)
|
|||||||
Provision for losses on financing receivables
|
-
|
-
|
-
|
4
|
|||||||
Other costs and expenses
|
(7)
|
(14)
|
(6)
|
(141)
|
|||||||
Earnings (loss) from discontinued operations, before income taxes
|
(29)
|
32
|
(94)
|
74
|
|||||||
Benefit (provision) for income taxes
|
38
|
13
|
57
|
43
|
|||||||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
9
|
$
|
45
|
$
|
(37)
|
$
|
117
|
|||
Disposal
|
|||||||||||
Gain (loss) on disposal before income taxes
|
$
|
6
|
$
|
(3)
|
$
|
(63)
|
$
|
(1,811)
|
|||
Benefit (provision) for income taxes
|
(3)
|
(72)
|
62
|
(619)
|
|||||||
Gain (loss) on disposal, net of taxes
|
$
|
3
|
$
|
(75)
|
$
|
(1)
|
$
|
(2,430)
|
|||
Earnings (loss) from discontinued operations, net of taxes(a)
|
$
|
12
|
$
|
(30)
|
$
|
(38)
|
$
|
(2,313)
|
|||
ROLLFORWARD OF THE RESERVE
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Balance, beginning of period
|
$
|
833
|
$
|
814
|
$
|
875
|
$
|
809
|
|||
Provision
|
27
|
11
|
84
|
18
|
|||||||
Claim resolutions / rescissions
|
-
|
-
|
(99)
|
(2)
|
|||||||
Balance, end of period
|
$
|
860
|
$
|
825
|
$
|
860
|
$
|
825
|
|||
FINANCIAL INFORMATION FOR WMC
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Total revenues and other income (loss)
|
$
|
(18)
|
$
|
(5)
|
$
|
(58)
|
$
|
(5)
|
|||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(20)
|
$
|
(10)
|
$
|
(52)
|
$
|
(16)
|
June 30, 2016
|
December 31, 2015
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
Gross
|
||||||||||||||||||||
Amortized
|
unrealized
|
unrealized
|
Estimated
|
Amortized
|
unrealized
|
unrealized
|
Estimated
|
||||||||||||||||
(In millions)
|
cost
|
gains
|
losses
|
fair value
|
cost
|
gains
|
losses
|
fair value
|
|||||||||||||||
GE
|
|||||||||||||||||||||||
Debt
|
|||||||||||||||||||||||
U.S. corporate
|
$
|
4
|
$
|
-
|
$
|
-
|
$
|
4
|
$
|
2
|
$
|
-
|
$
|
-
|
$
|
3
|
|||||||
Corporate – non-U.S.
|
9
|
-
|
-
|
9
|
1
|
-
|
-
|
1
|
|||||||||||||||
U.S. government and federal
|
|||||||||||||||||||||||
agency
|
49
|
1
|
-
|
50
|
49
|
-
|
-
|
49
|
|||||||||||||||
Equity
|
41
|
10
|
(4)
|
47
|
87
|
13
|
(2)
|
98
|
|||||||||||||||
103
|
11
|
(4)
|
110
|
139
|
14
|
(2)
|
151
|
||||||||||||||||
GE Capital
|
|||||||||||||||||||||||
Debt
|
|||||||||||||||||||||||
U.S. corporate
|
20,718
|
4,177
|
(51)
|
24,844
|
19,971
|
2,669
|
(285)
|
22,355
|
|||||||||||||||
State and municipal
|
3,885
|
731
|
(48)
|
4,568
|
3,910
|
407
|
(73)
|
4,245
|
|||||||||||||||
Mortgage and asset-backed(a)
|
2,957
|
188
|
(23)
|
3,122
|
2,995
|
157
|
(35)
|
3,116
|
|||||||||||||||
Corporate – non-U.S.
|
5,299
|
108
|
(4)
|
5,402
|
759
|
96
|
(9)
|
846
|
|||||||||||||||
Government – non-U.S.
|
608
|
156
|
(1)
|
764
|
279
|
136
|
-
|
415
|
|||||||||||||||
U.S. government and federal
|
|||||||||||||||||||||||
agency
|
694
|
96
|
-
|
790
|
623
|
104
|
-
|
727
|
|||||||||||||||
Equity
|
107
|
19
|
(1)
|
125
|
112
|
16
|
(4)
|
123
|
|||||||||||||||
34,268
|
5,475
|
(128)
|
39,615
|
28,648
|
3,585
|
(407)
|
31,827
|
||||||||||||||||
Eliminations
|
(4)
|
-
|
-
|
(4)
|
(4)
|
-
|
-
|
(4)
|
|||||||||||||||
Total
|
$
|
34,367
|
$
|
5,486
|
$
|
(133)
|
$
|
39,720
|
$
|
28,783
|
$
|
3,599
|
$
|
(409)
|
$
|
31,973
|
|||||||
ESTIMATED FAIR VALUE AND GROSS UNREALIZED LOSSES OF AVAILABLE-FOR-SALE INVESTMENT SECURITIES
|
||||||||||||
In loss position for
|
||||||||||||
Less than 12 months
|
12 months or more
|
|||||||||||
Gross
|
Gross
|
|||||||||||
Estimated
|
unrealized
|
Estimated
|
unrealized
|
|||||||||
(In millions)
|
fair value(a)
|
losses(a)(b)
|
fair value
|
losses(b)
|
||||||||
June 30, 2016
|
||||||||||||
Debt
|
||||||||||||
U.S. corporate
|
$
|
229
|
$
|
(9)
|
$
|
689
|
$
|
(42)
|
||||
State and municipal
|
-
|
-
|
159
|
(48)
|
||||||||
Mortgage and asset-backed
|
250
|
(6)
|
168
|
(17)
|
||||||||
Corporate – non-U.S.
|
718
|
-
|
31
|
(4)
|
||||||||
Equity
|
28
|
(5)
|
-
|
-
|
||||||||
Total
|
$
|
1,226
|
$
|
(21)
|
$
|
1,048
|
$
|
(111)
|
(c)
|
|||
December 31, 2015
|
||||||||||||
Debt
|
||||||||||||
U.S. corporate
|
$
|
2,966
|
$
|
(218)
|
$
|
433
|
$
|
(67)
|
||||
State and municipal
|
494
|
(20)
|
155
|
(53)
|
||||||||
Mortgage and asset-backed
|
719
|
(20)
|
84
|
(16)
|
||||||||
Corporate – non-U.S.
|
56
|
(4)
|
14
|
(4)
|
||||||||
Equity
|
36
|
(6)
|
-
|
-
|
||||||||
Total
|
$
|
4,271
|
$
|
(268)
|
$
|
686
|
$
|
(140)
|
||||
(b) | Included gross unrealized losses of $1 million related to securities that had other-than-temporary impairments previously recognized at June 30, 2016. |
(c) | Includes debt securities held to support obligations to holders of Guaranteed Investment Contracts (GICs) of which the majority are considered to be investment-grade by the major rating agencies at June 30, 2016. |
PRE-TAX, OTHER-THAN-TEMPORARY IMPAIRMENTS ON INVESTMENT SECURITIES
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Total pre-tax, OTTI recognized
|
$
|
1
|
$
|
29
|
$
|
18
|
$
|
32
|
|||
Pre-tax, OTTI recognized in AOCI
|
-
|
-
|
-
|
-
|
|||||||
Pre-tax, OTTI recognized in earnings(a)
|
$
|
1
|
$
|
29
|
$
|
18
|
$
|
32
|
|||
CONTRACTUAL MATURITIES OF INVESTMENT IN AVAILABLE-FOR-SALE DEBT SECURITIES
|
|||||
(EXCLUDING MORTGAGE AND ASSET-BACKED SECURITIES)
|
|||||
Amortized
|
Estimated
|
||||
(In millions)
|
cost
|
fair value
|
|||
Due
|
|||||
Within one year
|
$
|
5,218
|
$
|
5,226
|
|
After one year through five years
|
3,901
|
4,167
|
|||
After five years through ten years
|
4,521
|
5,070
|
|||
After ten years
|
17,626
|
21,968
|
|||
GROSS REALIZED GAINS AND LOSSES ON AVAILABLE-FOR-SALE INVESTMENT SECURITIES
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
GE
|
|||||||||||
Gains
|
$
|
1
|
$
|
1
|
$
|
5
|
$
|
1
|
|||
Losses, including impairments
|
(1)
|
(14)
|
(10)
|
(14)
|
|||||||
Net
|
-
|
(13)
|
(5)
|
(13)
|
|||||||
GE Capital
|
|||||||||||
Gains
|
35
|
6
|
36
|
97
|
|||||||
Losses, including impairments
|
(11)
|
(21)
|
(30)
|
(35)
|
|||||||
Net
|
24
|
(15)
|
6
|
63
|
|||||||
Total
|
$
|
24
|
$
|
(28)
|
$
|
2
|
$
|
50
|
|||
(In millions)
|
June 30, 2016
|
December 31, 2015
|
|||
Raw materials and work in process
|
$
|
14,650
|
$
|
13,415
|
|
Finished goods
|
9,305
|
8,265
|
|||
Unbilled shipments
|
512
|
628
|
|||
24,467
|
22,308
|
||||
Revaluation to LIFO
|
257
|
207
|
|||
Total inventories
|
$
|
24,723
|
$
|
22,515
|
FINANCING RECEIVABLES, NET
|
|||||
(In millions)
|
June 30, 2016
|
December 31, 2015
|
|||
Loans, net of deferred income
|
$
|
19,045
|
$
|
20,115
|
|
Investment in financing leases, net of deferred income
|
5,027
|
4,969
|
|||
24,071
|
25,084
|
||||
Allowance for losses
|
(74)
|
(81)
|
|||
Financing receivables – net(a)
|
$
|
23,998
|
$
|
25,003
|
|
(a) | Included $11.8 billion and $12.9 billion of receivables sold by GE to GE Capital at June 30, 2016 and December 31, 2015, respectively. |
ALLOWANCE FOR LOSSES
|
|||||||||||
(In millions)
|
2016
|
2015
|
|||||||||
Balance at January 1
|
$
|
81
|
$
|
93
|
|||||||
Provision
|
19
|
29
|
|||||||||
Net write-offs(a)
|
(26)
|
(40)
|
|||||||||
Other(b)
|
-
|
9
|
|||||||||
Balance at June 30
|
$
|
74
|
$
|
91
|
|||||||
(b)
|
Other primarily includes the effects of currency exchange.
|
(In millions)
|
June 30, 2016
|
December 31, 2015
|
|||||||||
Original cost
|
$
|
86,317
|
$
|
90,023
|
|||||||
Less accumulated depreciation and amortization
|
(35,881)
|
(35,928)
|
|||||||||
Property, plant and equipment – net
|
$
|
50,436
|
$
|
54,095
|
|||||||
ASSETS ACQUIRED AND LIABILITIES ASSUMED AT THE ACQUISITION DATE
|
||
Approximate
|
||
balance at
|
||
(in millions)
|
June 30, 2016
|
|
Assets
|
||
Cash and equivalents
|
$
|
1,750
|
Current receivables
|
4,050
|
|
Inventories
|
4,750
|
|
Property, plant and equipment
|
2,900
|
|
Goodwill
|
14,750
|
|
Other intangible assets
|
4,500
|
|
All other assets, net(a)
|
3,950
|
|
Total Assets
|
$
|
36,650
|
Liabilities
|
||
Accounts payable
|
$
|
1,900
|
Progress collections
|
2,950
|
|
Accrued contract liabilities
|
8,600
|
|
All other liabilities(b)
|
7,700
|
|
Total Liabilities
|
21,150
|
|
Redeemable noncontrolling interests
|
3,000
|
|
Noncontrolling interest
|
600
|
|
Total purchase price
|
11,900
|
|
Cash acquired
|
1,750
|
|
Total purchase price, net of cash acquired
|
$
|
10,100
|
(b) | Includes approximately $750 million of liabilities for unrecognized income tax benefits and other uncertain taxes and approximately $750 million of pension and other employee related costs. |
CHANGES IN GOODWILL BALANCES
|
|||||||||||
Dispositions,
|
|||||||||||
currency
|
|||||||||||
Balance at
|
exchange
|
Balance at
|
|||||||||
(In millions)
|
January 1, 2016
|
Acquisitions (a)
|
and other
|
June 30, 2016
|
|||||||
Power
|
$
|
16,736
|
$
|
1,147
|
$
|
(24)
|
$
|
17,859
|
|||
Renewable Energy
|
2,580
|
28
|
(11)
|
2,596
|
|||||||
Oil & Gas
|
10,594
|
-
|
7
|
10,601
|
|||||||
Energy Connections
|
6,227
|
156
|
30
|
6,412
|
|||||||
Aviation
|
8,567
|
-
|
67
|
8,635
|
|||||||
Healthcare
|
17,353
|
98
|
(15)
|
17,436
|
|||||||
Transportation
|
851
|
-
|
7
|
858
|
|||||||
Appliances & Lighting
|
214
|
64
|
17
|
295
|
|||||||
Capital
|
2,370
|
-
|
1
|
2,370
|
|||||||
Corporate
|
34
|
-
|
(1)
|
34
|
|||||||
Total
|
$
|
65,526
|
$
|
1,492
|
$
|
79
|
$
|
67,097
|
|||
OTHER INTANGIBLE ASSETS - NET
|
|||||
(In millions)
|
June 30, 2016
|
December 31, 2015
|
|||
Intangible assets subject to amortization
|
$
|
16,550
|
$
|
17,688
|
|
Indefinite-lived intangible assets(a)
|
100
|
109
|
|||
Total
|
$
|
16,650
|
$
|
17,797
|
|
(a) | Indefinite-lived intangible assets principally comprise trademarks and in-process research and development. |
INTANGIBLE ASSETS SUBJECT TO AMORTIZATION
|
|||||||||||||||||
June 30, 2016
|
December 31, 2015
|
||||||||||||||||
Gross
|
Gross
|
||||||||||||||||
carrying
|
Accumulated
|
carrying
|
Accumulated
|
||||||||||||||
(In millions)
|
amount
|
amortization
|
Net
|
amount
|
amortization
|
Net
|
|||||||||||
Customer-related
|
$
|
9,321
|
$
|
(2,297)
|
$
|
7,024
|
$
|
9,758
|
$
|
(2,113)
|
$
|
7,645
|
|||||
Patents and technology
|
8,497
|
(3,358)
|
5,139
|
8,543
|
(3,096)
|
5,447
|
|||||||||||
Capitalized software
|
7,529
|
(4,339)
|
3,190
|
7,375
|
(4,136)
|
3,239
|
|||||||||||
Trademarks
|
1,257
|
(314)
|
944
|
1,337
|
(282)
|
1,055
|
|||||||||||
Lease valuations
|
125
|
(47)
|
78
|
167
|
(22)
|
145
|
|||||||||||
Present value of future profits(a)
|
668
|
(668)
|
-
|
651
|
(651)
|
-
|
|||||||||||
All other
|
330
|
(155)
|
175
|
267
|
(108)
|
159
|
|||||||||||
Total
|
$
|
27,728
|
$
|
(11,177)
|
$
|
16,550
|
$
|
28,098
|
$
|
(10,408)
|
$
|
17,688
|
|||||
(In millions)
|
June 30, 2016
|
December 31, 2015
|
|||
GE
|
|||||
Contract assets
|
$
|
23,458
|
$
|
21,156
|
|
(In millions)
|
June 30, 2016
|
December 31, 2015
|
|||
Short-term borrowings
|
|||||
GE
|
|||||
Commercial paper
|
$
|
1,000
|
$
|
500
|
|
Current portion of long-term borrowings
|
16,183
|
17,770
|
|||
Other
|
2,202
|
1,522
|
|||
Total GE short-term borrowings(a)
|
19,384
|
19,792
|
|||
GE Capital
|
|||||
Commercial paper
|
|||||
U.S.
|
5,002
|
650
|
|||
Non-U.S.
|
-
|
4,351
|
|||
Current portion of long-term borrowings
|
8,485
|
24,969
|
|||
Intercompany payable to GE(b)
|
11,040
|
17,642
|
|||
Other(c)
|
156
|
1,005
|
|||
Total GE Capital short-term borrowings
|
24,683
|
48,617
|
|||
Eliminations(b)
|
(12,141)
|
(18,549)
|
|||
Total short-term borrowings
|
$
|
31,927
|
$
|
49,860
|
|
Long-term borrowings
|
|||||
GE
|
|||||
Senior notes
|
$
|
63,925
|
$
|
72,471
|
|
Subordinated notes
|
2,910
|
2,940
|
|||
Subordinated debentures(d)
|
2,347
|
6,600
|
|||
Other
|
952
|
1,298
|
|||
Total GE long-term borrowings(a)
|
70,134
|
83,309
|
|||
GE Capital
|
|||||
Senior notes
|
50,266
|
59,107
|
|||
Subordinated notes
|
329
|
251
|
|||
Intercompany payable to GE(b)
|
54,146
|
67,062
|
|||
Other(c)
|
1,895
|
2,058
|
|||
Total GE Capital long-term borrowings
|
106,636
|
128,478
|
|||
Eliminations(b)
|
(54,266)
|
(67,128)
|
|||
Total long-term borrowings
|
$
|
122,504
|
$
|
144,659
|
|
Non-recourse borrowings of consolidated securitization entities(e)
|
$
|
2,005
|
$
|
3,083
|
|
Total borrowings
|
$
|
156,436
|
$
|
197,602
|
|
(b)
|
The amount of the intercompany payable to GE was $65,186 million as of June 30, 2016, which includes a reduction in the short-term intercompany payable to GE for a $5,002 million loan in the second quarter of 2016 from GE Capital to GE, which bears the right of offset against amounts owed under the assumed debt agreement.
|
(c)
|
Included $2,567 million and $2,679 million of funding secured by aircraft and other collateral at June 30, 2016 and December 31, 2015, respectively, of which $1,475 million and $1,534 million is non-recourse to GE Capital at June 30, 2016 and December 31, 2015, respectively.
|
(d)
|
Included $2,347 million of subordinated debentures, which constitute the sole assets of trusts that have issued trust preferred securities and where GE owns 100% of the common securities of the trusts. Obligations associated with these trusts are unconditionally guaranteed by GE.
|
(e)
|
Included $1,193 million and $918 million of current portion of long-term borrowings at June 30, 2016 and December 31, 2015, respectively. See Note 16.
|
EFFECT ON OPERATIONS OF PENSION PLANS
|
||||||||||||
Principal pension plans
|
||||||||||||
Three months ended June 30
|
Six months ended June 30
|
|||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
||||||||
Service cost for benefits earned
|
$
|
291
|
$
|
367
|
$
|
606
|
$
|
728
|
||||
Prior service cost amortization
|
76
|
51
|
152
|
103
|
||||||||
Expected return on plan assets
|
(836)
|
(827)
|
(1,670)
|
(1,652)
|
||||||||
Interest cost on benefit obligations
|
735
|
696
|
1,469
|
1,391
|
||||||||
Net actuarial loss amortization
|
612
|
820
|
1,224
|
1,645
|
||||||||
Curtailment loss (gain)
|
(1)
|
-
|
(1)
|
71
|
(a)
|
|||||||
Pension plans cost
|
$
|
877
|
$
|
1,107
|
$
|
1,780
|
$
|
2,286
|
||||
Other pension plans
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Service cost for benefits earned
|
$
|
118
|
$
|
95
|
$
|
231
|
$
|
200
|
|||
Prior service credit amortization
|
-
|
-
|
(1)
|
-
|
|||||||
Expected return on plan assets
|
(259)
|
(205)
|
(522)
|
(414)
|
|||||||
Interest cost on benefit obligations
|
168
|
130
|
340
|
263
|
|||||||
Net actuarial loss amortization
|
65
|
71
|
129
|
145
|
|||||||
Pension plans cost
|
$
|
92
|
$
|
91
|
$
|
177
|
$
|
194
|
|||
EFFECT ON OPERATIONS OF PRINCIPAL RETIREE BENEFIT PLANS
|
||||||||||||
Principal retiree benefit plans
|
||||||||||||
Three months ended June 30
|
Six months ended June 30
|
|||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
||||||||
Service cost for benefits earned
|
$
|
27
|
$
|
51
|
$
|
52
|
$
|
92
|
||||
Prior service cost (credit) amortization
|
(41)
|
34
|
(82)
|
67
|
||||||||
Expected return on plan assets
|
(11)
|
(12)
|
(22)
|
(24)
|
||||||||
Interest cost on benefit obligations
|
63
|
100
|
126
|
201
|
||||||||
Net actuarial loss (gain) amortization
|
(14)
|
2
|
(27)
|
3
|
||||||||
Curtailment gain, net
|
-
|
(196)
|
(a)
|
-
|
(192)
|
(b)
|
||||||
Retiree benefit plans cost
|
$
|
24
|
$
|
(21)
|
$
|
47
|
$
|
147
|
||||
UNRECOGNIZED TAX BENEFITS
|
|||||
(In millions)
|
June 30, 2016
|
December 31, 2015
|
|||
Unrecognized tax benefits
|
$
|
6,572
|
$
|
6,778
|
|
Portion that, if recognized, would reduce tax expense and effective tax rate(a)
|
4,164
|
4,723
|
|||
Accrued interest on unrecognized tax benefits
|
945
|
805
|
|||
Accrued penalties on unrecognized tax benefits
|
135
|
98
|
|||
Reasonably possible reduction to the balance of unrecognized tax benefits
|
|||||
in succeeding 12 months
|
0-1,400
|
0-700
|
|||
Portion that, if recognized, would reduce tax expense and effective tax rate(a)
|
0-800
|
0-200
|
|||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Investment securities
|
|||||||||||
Beginning balance
|
$
|
680
|
$
|
1,245
|
$
|
460
|
$
|
1,013
|
|||
Other comprehensive income (loss) (OCI) before reclassifications –
|
|||||||||||
net of deferred taxes of $222, $(365), $304 and $(210)
|
419
|
(692)
|
578
|
(405)
|
|||||||
Reclassifications from OCI – net of deferred taxes
|
|||||||||||
of $(9), $3, $31 and $(26)
|
(21)
|
10
|
39
|
(44)
|
|||||||
Other comprehensive income (loss)(a)
|
397
|
(682)
|
617
|
(449)
|
|||||||
Less OCI attributable to noncontrolling interests
|
-
|
(1)
|
-
|
-
|
|||||||
Ending balance
|
$
|
1,077
|
$
|
564
|
$
|
1,077
|
$
|
564
|
|||
Currency translation adjustments (CTA)
|
|||||||||||
Beginning balance
|
$
|
(5,500)
|
$
|
(7,716)
|
$
|
(5,499)
|
$
|
(2,427)
|
|||
OCI before reclassifications – net of deferred taxes
|
|||||||||||
of $(50), $(201), $217 and $1,343
|
26
|
1,511
|
141
|
(3,828)
|
|||||||
Reclassifications from OCI – net of deferred taxes
|
|||||||||||
of $(39), $(150), $80 and $(151)
|
29
|
304
|
(85)
|
307
|
|||||||
Other comprehensive income (loss)(a)
|
55
|
1,815
|
57
|
(3,521)
|
|||||||
Less OCI attributable to noncontrolling interests
|
3
|
13
|
6
|
(34)
|
|||||||
Ending balance
|
$
|
(5,448)
|
$
|
(5,914)
|
$
|
(5,448)
|
$
|
(5,914)
|
|||
Cash flow hedges
|
|||||||||||
Beginning balance
|
$
|
(26)
|
$
|
(226)
|
$
|
(80)
|
$
|
(180)
|
|||
OCI before reclassifications – net of deferred taxes
|
|||||||||||
of $2, $42, $(5) and $4
|
(15)
|
433
|
(40)
|
(493)
|
|||||||
Reclassifications from OCI – net of deferred taxes
|
|||||||||||
of $(4), $(68), $1 and $49
|
(10)
|
(347)
|
69
|
533
|
|||||||
Other comprehensive income (loss)(a)
|
(25)
|
86
|
30
|
40
|
|||||||
Less OCI attributable to noncontrolling interests
|
-
|
-
|
-
|
-
|
|||||||
Ending balance
|
$
|
(51)
|
$
|
(140)
|
$
|
(51)
|
$
|
(140)
|
|||
Benefit plans
|
|||||||||||
Beginning balance
|
$
|
(10,859)
|
$
|
(15,667)
|
$
|
(11,410)
|
$
|
(16,578)
|
|||
Prior service credit (costs) - net of deferred taxes
|
|||||||||||
of $0, $1,194, $5 and $1,194
|
-
|
2,090
|
23
|
2,090
|
|||||||
Net actuarial gain (loss) – net of deferred taxes
|
|||||||||||
of $(65), $204, $(43) and $269
|
(80)
|
349
|
(12)
|
559
|
|||||||
Net curtailment/settlement - net of deferred taxes
|
|||||||||||
of $0, $(71), $0 and $(44)
|
(1)
|
(125)
|
(1)
|
(77)
|
|||||||
Prior service cost amortization – net of deferred taxes
|
|||||||||||
of $20, $38, $41 and $75
|
17
|
51
|
33
|
101
|
|||||||
Net actuarial loss amortization – net of deferred taxes
|
|||||||||||
of $217, $301, $433 and $605
|
447
|
586
|
890
|
1,187
|
|||||||
Other comprehensive income (loss)(a)
|
382
|
2,951
|
933
|
3,860
|
|||||||
Less OCI attributable to noncontrolling interests
|
-
|
-
|
(1)
|
(2)
|
|||||||
Ending balance
|
$
|
(10,476)
|
$
|
(12,716)
|
$
|
(10,476)
|
$
|
(12,716)
|
|||
Accumulated other comprehensive income (loss) at June 30
|
$
|
(14,898)
|
$
|
(18,206)
|
$
|
(14,898)
|
$
|
(18,206)
|
|||
RECLASSIFICATION OUT OF AOCI
|
|||||||||||||
Three months ended
|
Six months ended
|
||||||||||||
June 30
|
June 30
|
||||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
Statement of earnings caption
|
||||||||
Available-for-sale securities
|
|||||||||||||
Realized gains (losses) on
|
|||||||||||||
sale/impairment of securities
|
$
|
30
|
$
|
(13)
|
$
|
(70)
|
$
|
70
|
Total revenues and other income(a)
|
||||
Income taxes
|
(9)
|
3
|
31
|
(26)
|
Benefit (provision) for income taxes(b)
|
||||||||
Net of tax
|
$
|
21
|
$
|
(10)
|
$
|
(39)
|
$
|
44
|
|||||
Currency translation adjustments
|
|||||||||||||
Gains (losses) on dispositions
|
$
|
10
|
$
|
(154)
|
$
|
5
|
$
|
(156)
|
Total revenues and other income(c)
|
||||
Income taxes
|
(39)
|
(150)
|
80
|
(151)
|
Benefit (provision) for income taxes(d)
|
||||||||
Net of tax
|
$
|
(29)
|
$
|
(304)
|
$
|
85
|
$
|
(307)
|
|||||
Cash flow hedges
|
|||||||||||||
Gains (losses) on interest rate
|
|||||||||||||
derivatives
|
$
|
(26)
|
$
|
(22)
|
$
|
(55)
|
$
|
(61)
|
Interest and other financial charges
|
||||
Foreign exchange contracts
|
37
|
430
|
(5)
|
(528)
|
(e)
|
||||||||
Other
|
2
|
7
|
(11)
|
7
|
(f)
|
||||||||
Total before tax
|
14
|
415
|
(71)
|
(582)
|
|||||||||
Income taxes
|
(4)
|
(68)
|
1
|
49
|
Benefit (provision) for income taxes
|
||||||||
Net of tax
|
$
|
10
|
$
|
347
|
$
|
(69)
|
$
|
(533)
|
|||||
Benefit plan items
|
|||||||||||||
Curtailment gain (loss)
|
$
|
1
|
$
|
196
|
$
|
1
|
$
|
121
|
(g)
|
||||
Amortization of prior service costs
|
(37)
|
(89)
|
(74)
|
(176)
|
(g)
|
||||||||
Amortization of actuarial gains (losses)
|
(664)
|
(887)
|
(1,323)
|
(1,792)
|
(g)
|
||||||||
Total before tax
|
(700)
|
(780)
|
(1,396)
|
(1,847)
|
|||||||||
Income taxes
|
237
|
268
|
474
|
636
|
Benefit (provision) for income taxes
|
||||||||
Net of tax
|
$
|
(463)
|
$
|
(512)
|
$
|
(922)
|
$
|
(1,211)
|
|||||
Total reclassification adjustments (net of tax)
|
$
|
(461)
|
$
|
(479)
|
$
|
(946)
|
$
|
(2,007)
|
|||||
(a)
|
(b)
|
Included $(1) million and $(7) million for the three months ended June 30, 2016 and 2015, and $31 million and $(6) million for the six months ended June 30, 2016 and 2015, respectively in earnings (loss) from discontinued operations, net of taxes.
|
(c)
|
Included $77 million and $4 million for the three months ended June 30, 2016 and 2015, and $71 million and $4 million for the six months ended June 30, 2016 and 2015, respectively in earnings (loss) from discontinued operations, net of taxes.
|
(d)
|
Included $(39) million and $(137) million for the three months ended June 30, 2016 and 2015, and $80 million and $(137) million for the six months ended June 30, 2016 and 2015, respectively in earnings (loss) from discontinued operations, net of taxes
|
(e)
|
Included $53 million and $404 million in GE Capital revenues from services and $(17) million and $26 million in interest and other financial charges in the three months ended June 30, 2016 and 2015, respectively and $31 million and $(540) million in GE Capital revenues from services and $(36) million and $12 million in interest and other financial charges in the six months ended June 30, 2016 and 2015, respectively.
|
(f)
|
Primarily recorded in costs and expenses.
|
(g)
|
Curtailment gain (loss), amortization of prior service costs and actuarial gains and losses out of AOCI are included in the computation of net periodic pension costs. See Note 10 for further information.
|
CHANGES TO NONCONTROLLING INTERESTS
|
||||||||||||
Three months ended June 30
|
Six months ended June 30
|
|||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
||||||||
Beginning balance
|
$
|
1,667
|
$
|
8,738
|
$
|
1,864
|
$
|
8,674
|
||||
Net earnings (loss)
|
1
|
223
|
(68)
|
192
|
||||||||
GECC preferred stock dividend
|
-
|
(161)
|
-
|
(161)
|
||||||||
Dividends
|
(14)
|
(16)
|
(21)
|
(18)
|
||||||||
Dispositions
|
-
|
(6)
|
(42)
|
(6)
|
||||||||
Other (including AOCI)(a)(b)
|
39
|
(2)
|
(40)
|
95
|
||||||||
Ending balance
|
$
|
1,693
|
$
|
8,776
|
$
|
1,693
|
$
|
8,776
|
||||
(b)
|
Includes $(123) million for deconsolidation of investment funds managed by GE Asset Management (GEAM) upon the adoption of ASU 2015-02, Amendments to the Consolidation Analysis. See Note 1.
|
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Beginning balance
|
$
|
3,036
|
$
|
73
|
$
|
2,972
|
$
|
98
|
|||
Net earnings (loss)
|
(86)
|
3
|
(139)
|
(2)
|
|||||||
Dividends
|
-
|
(1)
|
(9)
|
(11)
|
|||||||
Redemption value adjustment
|
79
|
1
|
110
|
1
|
|||||||
Other
|
42
|
3
|
135
|
(7)
|
|||||||
Ending balance
|
$
|
3,070
|
$
|
79
|
$
|
3,070
|
$
|
79
|
|||
Three months ended June 30
|
|||||||||||
2016
|
2015
|
||||||||||
(In millions; per-share amounts in dollars)
|
Diluted
|
Basic
|
Diluted
|
Basic
|
|||||||
Amounts attributable to the Company:
|
|||||||||||
Consolidated
|
|||||||||||
Earnings from continuing operations for
|
|||||||||||
per-share calculation(a)(b)(c)
|
$
|
3,427
|
$
|
3,430
|
$
|
1,677
|
$
|
1,677
|
|||
Preferred stock dividends
|
(152)
|
(152)
|
-
|
-
|
|||||||
Earnings (loss) from continuing operations attributable to
|
|||||||||||
common shareowners for per-share calculation(a)(b)(c)
|
$
|
3,275
|
$
|
3,278
|
$
|
1,677
|
$
|
1,677
|
|||
Earnings (loss) from discontinued operations
|
|||||||||||
for per-share calculation(a)(b)(c)
|
(543)
|
(540)
|
(3,034)
|
(3,034)
|
|||||||
Net earnings (loss) attributable to GE common
|
|||||||||||
shareowners for per-share calculation(a)(b)(c)
|
$
|
2,732
|
$
|
2,735
|
$
|
(1,357)
|
$
|
(1,357)
|
|||
Average equivalent shares
|
|||||||||||
Shares of GE common stock outstanding
|
9,079
|
9,079
|
10,087
|
10,087
|
|||||||
Employee compensation-related shares (including
|
|||||||||||
stock options)
|
85
|
-
|
71
|
-
|
|||||||
Total average equivalent shares
|
9,164
|
9,079
|
10,158
|
10,087
|
|||||||
Per-share amounts
|
|||||||||||
Earnings (loss) from continuing operations
|
$
|
0.36
|
$
|
0.36
|
$
|
0.17
|
$
|
0.17
|
|||
Earnings (loss) from discontinued operations
|
(0.06)
|
(0.06)
|
(0.30)
|
(0.30)
|
|||||||
Net earnings (loss)
|
0.30
|
0.30
|
(0.13)
|
(0.13)
|
|||||||
Six months ended June 30
|
|||||||||||
2016
|
2015
|
||||||||||
(In millions; per-share amounts in dollars)
|
Diluted
|
Basic
|
Diluted
|
Basic
|
|||||||
Amounts attributable to the Company:
|
|||||||||||
Consolidated
|
|||||||||||
Earnings (loss) from continuing operations for
|
|||||||||||
per-share calculation(a)(b)(c)
|
$
|
3,925
|
$
|
3,927
|
$
|
(2,875)
|
$
|
(2,875)
|
|||
Preferred stock dividends
|
(441)
|
(441)
|
-
|
-
|
|||||||
Earnings (loss) from continuing operations attributable to
|
|||||||||||
common shareowners for per-share calculation(a)(b)(c)
|
$
|
3,484
|
$
|
3,486
|
$
|
(2,875)
|
$
|
(2,875)
|
|||
Earnings (loss) from discontinued operations
|
|||||||||||
for per-share calculation(a)(b)(c)
|
(855)
|
(852)
|
(12,070)
|
(12,070)
|
|||||||
Net earnings (loss) attributable to GE common
|
|||||||||||
shareowners for per-share calculation(a)(b)(c)
|
$
|
2,631
|
$
|
2,634
|
$
|
(14,939)
|
$
|
(14,939)
|
|||
Average equivalent shares
|
|||||||||||
Shares of GE common stock outstanding
|
9,179
|
9,179
|
10,077
|
10,077
|
|||||||
Employee compensation-related shares (including
|
|||||||||||
stock options)
|
85
|
-
|
-
|
-
|
|||||||
Total average equivalent shares
|
9,264
|
9,179
|
10,077
|
10,077
|
|||||||
Per-share amounts
|
|||||||||||
Earnings (loss) from continuing operations
|
$
|
0.38
|
$
|
0.38
|
$
|
(0.29)
|
$
|
(0.29)
|
|||
Earnings (loss) from discontinued operations
|
(0.09)
|
(0.09)
|
(1.20)
|
(1.20)
|
|||||||
Net earnings (loss)
|
0.28
|
0.29
|
(1.48)
|
(1.48)
|
|||||||
(b)
|
Included an insignificant amount of dividend equivalents in each of the periods presented.
|
(c)
|
Included the dilutive adjustment for the change in income for forward purchase contracts that may be settled in stock for the three and six months ended June 30, 2016.
|
ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS
|
||||||||||||||
Netting
|
||||||||||||||
(In millions)
|
Level 1
|
(a)
|
Level 2
|
(a)
|
Level 3
|
adjustment
|
(b)
|
Net balance
|
||||||
June 30, 2016
|
||||||||||||||
Assets
|
||||||||||||||
Investment securities
|
||||||||||||||
Debt
|
||||||||||||||
U.S. corporate
|
$
|
-
|
$
|
21,426
|
$
|
3,422
|
$
|
-
|
$
|
24,848
|
||||
State and municipal
|
-
|
4,536
|
32
|
-
|
4,568
|
|||||||||
Mortgage and asset-backed
|
-
|
3,115
|
8
|
-
|
3,122
|
|||||||||
Corporate – non-U.S.
|
-
|
5,168
|
244
|
-
|
5,412
|
|||||||||
Government – non-U.S.
|
-
|
764
|
-
|
-
|
764
|
|||||||||
U.S. government and federal agency
|
-
|
532
|
307
|
-
|
839
|
|||||||||
Equity
|
143
|
16
|
8
|
-
|
167
|
|||||||||
Derivatives(c)
|
-
|
7,669
|
40
|
(6,821)
|
888
|
|||||||||
Total
|
$
|
143
|
$
|
43,226
|
$
|
4,060
|
$
|
(6,821)
|
$
|
40,608
|
||||
Liabilities
|
||||||||||||||
Derivatives
|
$
|
-
|
$
|
4,474
|
$
|
3
|
$
|
(3,830)
|
$
|
646
|
||||
Other(e)
|
-
|
1,132
|
-
|
-
|
1,132
|
|||||||||
Total
|
$
|
-
|
$
|
5,606
|
$
|
3
|
$
|
(3,830)
|
$
|
1,778
|
||||
December 31, 2015
|
||||||||||||||
Assets
|
||||||||||||||
Investment securities
|
||||||||||||||
Debt
|
||||||||||||||
U.S. corporate
|
$
|
-
|
$
|
19,351
|
$
|
3,006
|
$
|
-
|
$
|
22,358
|
||||
State and municipal
|
-
|
4,215
|
30
|
-
|
4,245
|
|||||||||
Mortgage and asset-backed
|
-
|
3,084
|
32
|
-
|
3,116
|
|||||||||
Corporate – non-U.S.
|
12
|
544
|
290
|
-
|
847
|
|||||||||
Government – non-U.S.
|
5
|
410
|
-
|
-
|
415
|
|||||||||
U.S. government and federal agency
|
49
|
404
|
323
|
-
|
776
|
|||||||||
Equity
|
194
|
9
|
13
|
-
|
217
|
|||||||||
Derivatives(c)
|
-
|
7,312
|
79
|
(6,110)
|
1,281
|
|||||||||
Other(d)
|
-
|
-
|
259
|
-
|
259
|
|||||||||
Total
|
$
|
260
|
$
|
35,331
|
$
|
4,033
|
$
|
(6,110)
|
$
|
33,512
|
||||
Liabilities
|
||||||||||||||
Derivatives
|
$
|
-
|
$
|
5,677
|
$
|
4
|
$
|
(4,968)
|
$
|
713
|
||||
Other(e)
|
-
|
1,182
|
-
|
-
|
1,182
|
|||||||||
Total
|
$
|
-
|
$
|
6,860
|
$
|
4
|
$
|
(4,968)
|
$
|
1,895
|
||||
(b) | The netting of derivative receivables and payables (including the effects of any collateral posted or received) is permitted when a legally enforceable master netting agreement exists. |
(c) | The fair value of derivatives includes an adjustment for non-performance risk. At June 30, 2016 and December 31, 2015, the cumulative adjustment for non-performance risk was $(9) million and insignificant, respectively. See Notes 15 and 19 for additional information on the composition of our derivative portfolio. |
(d) | Includes private equity investments. |
(e) | Primarily represents the liabilities associated with certain of our deferred incentive compensation plans. |
CHANGES IN LEVEL 3 INSTRUMENTS FOR THE THREE MONTHS ENDED
|
|||||||||||||||||||||||||||
Net
|
|||||||||||||||||||||||||||
change in
|
|||||||||||||||||||||||||||
Net
|
Net
|
unrealized
|
|||||||||||||||||||||||||
realized/
|
realized/
|
gains
|
|||||||||||||||||||||||||
unrealized
|
unrealized
|
(losses)
|
|||||||||||||||||||||||||
gains
|
gains
|
relating to
|
|||||||||||||||||||||||||
(losses)
|
(losses)
|
Transfers
|
Transfers
|
instruments
|
|||||||||||||||||||||||
Balance at
|
included in
|
included
|
into
|
out of
|
Balance at
|
still held at
|
|||||||||||||||||||||
(In millions)
|
April 1
|
earnings(a)
|
in AOCI
|
Purchases
|
Sales
|
Settlements
|
Level 3(b)
|
Level 3(b)
|
June 30
|
June 30(c)
|
|||||||||||||||||
2016
|
|||||||||||||||||||||||||||
Investment securities
|
|||||||||||||||||||||||||||
Debt
|
|||||||||||||||||||||||||||
U.S. corporate
|
$
|
3,143
|
$
|
4
|
$
|
132
|
$
|
173
|
$
|
-
|
$
|
(35)
|
$
|
8
|
$
|
(3)
|
$
|
3,422
|
$
|
-
|
|||||||
State and municipal
|
31
|
-
|
1
|
-
|
-
|
-
|
-
|
-
|
32
|
-
|
|||||||||||||||||
Mortgage and
|
|||||||||||||||||||||||||||
asset-backed
|
23
|
(10)
|
-
|
-
|
-
|
(5)
|
-
|
-
|
8
|
-
|
|||||||||||||||||
Corporate – non-U.S.
|
295
|
28
|
(5)
|
9
|
(82)
|
-
|
(1)
|
-
|
244
|
-
|
|||||||||||||||||
U.S. government and
|
|||||||||||||||||||||||||||
federal agency
|
277
|
-
|
30
|
-
|
-
|
-
|
-
|
-
|
307
|
-
|
|||||||||||||||||
Equity
|
9
|
-
|
(1)
|
-
|
-
|
-
|
-
|
-
|
8
|
-
|
|||||||||||||||||
Derivatives(d)(e)
|
82
|
(26)
|
-
|
-
|
-
|
(41)
|
11
|
11
|
37
|
(24)
|
|||||||||||||||||
Total
|
$
|
3,859
|
$
|
(4)
|
$
|
158
|
$
|
183
|
$
|
(82)
|
$
|
(82)
|
$
|
18
|
$
|
8
|
$
|
4,057
|
$
|
(24)
|
|||||||
2015
|
|||||||||||||||||||||||||||
Investment securities
|
|||||||||||||||||||||||||||
Debt
|
|||||||||||||||||||||||||||
U.S. corporate
|
$
|
3,163
|
$
|
(10)
|
$
|
(145)
|
$
|
87
|
$
|
(38)
|
$
|
(20)
|
$
|
-
|
$
|
(13)
|
$
|
3,024
|
$
|
-
|
|||||||
State and municipal
|
58
|
-
|
(3)
|
-
|
-
|
(8)
|
-
|
-
|
47
|
-
|
|||||||||||||||||
Mortgage and
|
|||||||||||||||||||||||||||
asset-backed
|
114
|
(15)
|
(8)
|
-
|
-
|
-
|
-
|
(13)
|
78
|
-
|
|||||||||||||||||
Corporate – non-U.S.
|
290
|
-
|
(7)
|
-
|
-
|
-
|
-
|
-
|
283
|
-
|
|||||||||||||||||
Government – non-U.S.
|
2
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2
|
-
|
|||||||||||||||||
U.S. government and
|
|||||||||||||||||||||||||||
federal agency
|
291
|
-
|
2
|
-
|
-
|
-
|
-
|
-
|
293
|
-
|
|||||||||||||||||
Equity
|
6
|
-
|
-
|
6
|
(6)
|
-
|
-
|
-
|
6
|
-
|
|||||||||||||||||
Derivatives(d)(e)
|
33
|
(2)
|
-
|
-
|
-
|
(6)
|
40
|
-
|
65
|
33
|
|||||||||||||||||
Other
|
225
|
4
|
-
|
-
|
(7)
|
-
|
-
|
-
|
222
|
1
|
|||||||||||||||||
Total
|
$
|
4,183
|
$
|
(23)
|
$
|
(161)
|
$
|
92
|
$
|
(51)
|
$
|
(35)
|
$
|
40
|
$
|
(27)
|
$
|
4,020
|
$
|
34
|
|||||||
(a)
|
(b)
|
Transfers in and out of Level 3 are considered to occur at the beginning of the period. Transfers out of Level 3 were primarily a result of increased use of quotes from independent pricing vendors based on recent trading activity.
|
(c)
|
Represents the amount of unrealized gains or losses for the period included in earnings.
|
(d)
|
Represents derivative assets net of derivative liabilities and includes cash accruals of none and $11 million not reflected in the fair value hierarchy table for the three months ended June 30, 2016 and 2015, respectively.
|
(e)
|
Gains (losses) included in net realized/unrealized gains (losses) included in earnings were offset by the earnings effects from the underlying items that were economically hedged. See Notes 15 and 19.
|
CHANGES IN LEVEL 3 INSTRUMENTS FOR THE SIX MONTHS ENDED
|
|||||||||||||||||||||||||||
Net
|
|||||||||||||||||||||||||||
change in
|
|||||||||||||||||||||||||||
Net
|
Net
|
unrealized
|
|||||||||||||||||||||||||
realized/
|
realized/
|
gains
|
|||||||||||||||||||||||||
unrealized
|
unrealized
|
(losses)
|
|||||||||||||||||||||||||
gains
|
gains
|
relating to
|
|||||||||||||||||||||||||
(losses)
|
(losses)
|
Transfers
|
Transfers
|
instruments
|
|||||||||||||||||||||||
Balance at
|
included in
|
included
|
into
|
out of
|
Balance at
|
still held at
|
|||||||||||||||||||||
(In millions)
|
January 1
|
earnings(a)
|
in AOCI
|
Purchases
|
Sales
|
Settlements
|
Level 3(b)
|
Level 3(b)
|
June 30
|
June 30(c)
|
|||||||||||||||||
2016
|
|||||||||||||||||||||||||||
Investment securities
|
|||||||||||||||||||||||||||
Debt
|
|||||||||||||||||||||||||||
U.S. corporate
|
$
|
3,006
|
$
|
8
|
$
|
232
|
$
|
233
|
$
|
(5)
|
$
|
(43)
|
$
|
8
|
$
|
(18)
|
$
|
3,422
|
$
|
-
|
|||||||
State and municipal
|
30
|
-
|
2
|
-
|
-
|
-
|
-
|
-
|
32
|
-
|
|||||||||||||||||
Mortgage and
|
|||||||||||||||||||||||||||
asset-backed
|
32
|
(19)
|
-
|
-
|
-
|
(6)
|
-
|
-
|
8
|
-
|
|||||||||||||||||
Corporate – non-U.S.
|
290
|
28
|
-
|
9
|
(82)
|
(1)
|
(1)
|
-
|
244
|
-
|
|||||||||||||||||
U.S. government and
|
|||||||||||||||||||||||||||
federal agency
|
323
|
-
|
(15)
|
-
|
-
|
(1)
|
-
|
-
|
307
|
-
|
|||||||||||||||||
Equity
|
13
|
(6)
|
1
|
-
|
-
|
-
|
-
|
-
|
8
|
-
|
|||||||||||||||||
Derivatives(d)(e)
|
88
|
(22)
|
-
|
-
|
-
|
(39)
|
-
|
10
|
37
|
(20)
|
|||||||||||||||||
Other
|
259
|
-
|
-
|
-
|
-
|
-
|
-
|
(259)
|
-
|
-
|
|||||||||||||||||
Total
|
$
|
4,042
|
$
|
(12)
|
$
|
221
|
$
|
243
|
$
|
(87)
|
$
|
(90)
|
$
|
7
|
$
|
(267)
|
$
|
4,057
|
$
|
(20)
|
|||||||
2015
|
|||||||||||||||||||||||||||
Investment securities
|
|||||||||||||||||||||||||||
Debt
|
|||||||||||||||||||||||||||
U.S. corporate
|
$
|
3,053
|
$
|
(6)
|
$
|
(86)
|
$
|
181
|
$
|
(49)
|
$
|
(56)
|
$
|
-
|
$
|
(13)
|
$
|
3,024
|
$
|
-
|
|||||||
State and municipal
|
58
|
-
|
(2)
|
-
|
-
|
(8)
|
-
|
-
|
47
|
-
|
|||||||||||||||||
Mortgage and
|
|||||||||||||||||||||||||||
asset-backed
|
145
|
(9)
|
(9)
|
-
|
(32)
|
(3)
|
-
|
(13)
|
78
|
-
|
|||||||||||||||||
Corporate – non-U.S.
|
337
|
-
|
(4)
|
-
|
(49)
|
-
|
-
|
-
|
283
|
-
|
|||||||||||||||||
Government – non-U.S.
|
2
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2
|
-
|
|||||||||||||||||
U.S. government and
|
|||||||||||||||||||||||||||
federal agency
|
266
|
-
|
28
|
-
|
-
|
(1)
|
-
|
-
|
293
|
-
|
|||||||||||||||||
Equity
|
9
|
2
|
(2)
|
6
|
(6)
|
(4)
|
-
|
-
|
6
|
-
|
|||||||||||||||||
Derivatives(d)(e)
|
29
|
3
|
-
|
-
|
-
|
(8)
|
40
|
-
|
65
|
40
|
|||||||||||||||||
Other
|
277
|
(34)
|
-
|
-
|
(20)
|
-
|
-
|
-
|
222
|
(37)
|
|||||||||||||||||
Total
|
$
|
4,175
|
$
|
(44)
|
$
|
(74)
|
$
|
187
|
$
|
(157)
|
$
|
(80)
|
$
|
41
|
$
|
(27)
|
$
|
4,020
|
$
|
3
|
|||||||
(a)
|
(b)
|
Transfers in and out of Level 3 are considered to occur at the beginning of the period. Transfers out of Level 3 for the six months ended June 30, 2016 were primarily a result of the adoption of ASU 2015-02, Amendments to the Consolidation Analysis. See Note 1.
|
(c)
|
Represents the amount of unrealized gains or losses for the period included in earnings.
|
(d)
|
Represents derivative assets net of derivative liabilities and includes cash accruals of none and $11 million not reflected in the fair value hierarchy table for the six months ended June 30, 2016 and 2015, respectively.
|
(e)
|
Remeasured during
|
Remeasured during
|
||||||||||
the six months ended
|
the year ended
|
||||||||||
June 30, 2016
|
December 31, 2015
|
||||||||||
(In millions)
|
Level 2
|
Level 3
|
Level 2
|
Level 3
|
|||||||
Financing receivables and financing receivables held for sale
|
$
|
-
|
$
|
33
|
$
|
-
|
$
|
154
|
|||
Cost and equity method investments
|
-
|
226
|
1
|
436
|
|||||||
Long-lived assets
|
32
|
634
|
2
|
882
|
|||||||
Total
|
$
|
32
|
$
|
893
|
$
|
3
|
$
|
1,471
|
|||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Financing receivables and financing receivables held for sale
|
$
|
-
|
$
|
(19)
|
$
|
(15)
|
$
|
(21)
|
|||
Cost and equity method investments
|
(18)
|
(60)
|
(95)
|
(91)
|
|||||||
Long-lived assets
|
(172)
|
(23)
|
(227)
|
(57)
|
|||||||
Total
|
$
|
(190)
|
$
|
(103)
|
$
|
(337)
|
$
|
(168)
|
|||
LEVEL 3 MEASUREMENTS - SIGNIFICANT UNOBSERVABLE INPUTS
|
||||||||||
Range
|
||||||||||
(Dollars in millions)
|
Fair value
|
Valuation technique
|
Unobservable inputs
|
(weighted-average)
|
||||||
June 30, 2016
|
||||||||||
Recurring fair value measurements
|
||||||||||
Investment securities – Debt
|
||||||||||
U.S. corporate
|
$
|
897
|
Income approach
|
Discount rate(a)
|
1.7%-13.5% (8.0%)
|
|||||
Mortgage and asset-backed
|
8
|
Income approach
|
Discount rate(a)
|
2.0%-5.0% (4.7%)
|
||||||
Non-recurring fair value measurements
|
||||||||||
Financing receivables and
|
||||||||||
financing receivables held for sale
|
$
|
31
|
Income approach
|
Discount rate(a)
|
9.0%-30.0% (20.4%)
|
|||||
Cost and equity method investments
|
138
|
Income approach
|
Discount rate(a)
|
9.0%-20.0% (13.2%)
|
||||||
Long-lived assets
|
599
|
Income approach
|
Discount rate(a)
|
1.8%-25.0% (10.5%)
|
||||||
December 31, 2015
|
||||||||||
Recurring fair value measurements
|
||||||||||
Investment securities – Debt
|
||||||||||
U.S. corporate
|
$
|
834
|
Income approach
|
Discount rate(a)
|
1.7%-14.1% (8.6%)
|
|||||
Mortgage and asset-backed
|
31
|
Income approach
|
Discount rate(a)
|
5.0%-12.0% (10.5%)
|
||||||
Corporate – non-U.S.
|
236
|
Income approach
|
Discount rate(a)
|
6.5%-14.0% (7.5%)
|
||||||
Other financial assets
|
259
|
Income approach,
|
EBITDA multiple
|
6.1X-15.0X (9.9X)
|
||||||
Market comparables
|
Capitalization rate
|
7.8%-7.8% (7.8%)
|
||||||||
Non-recurring fair value measurements
|
||||||||||
Financing receivables and
|
||||||||||
financing receivables held for sale
|
$
|
146
|
Income approach
|
Discount rate(a)
|
6.5%-30.0% (10.7%)
|
|||||
Cost and equity method investments
|
293
|
Income approach,
|
Discount rate(a)
|
9.5%-35.0% (14.4%)
|
||||||
Long-lived assets
|
830
|
Income approach
|
Discount rate(a)
|
1.8%-11.7% (10.5%)
|
||||||
June 30, 2016
|
December 31, 2015
|
|||||||||||
Carrying
|
Carrying
|
|||||||||||
amount
|
Estimated
|
amount
|
Estimated
|
|||||||||
(In millions)
|
(net)
|
fair value
|
(net)
|
fair value
|
||||||||
GE
|
||||||||||||
Assets
|
||||||||||||
Investments and notes receivable
|
$
|
1,353
|
$
|
1,437
|
$
|
1,104
|
$
|
1,174
|
||||
Liabilities
|
||||||||||||
Borrowings(a)(b)
|
19,331
|
20,822
|
18,397
|
18,954
|
||||||||
Borrowings (debt assumed)(a)(c)
|
70,188
|
79,727
|
84,704
|
92,231
|
||||||||
GE Capital
|
||||||||||||
Assets
|
||||||||||||
Loans
|
18,992
|
18,850
|
20,061
|
19,774
|
||||||||
Time deposits(d)
|
3,550
|
3,550
|
10,386
|
10,386
|
||||||||
Other commercial mortgages
|
1,356
|
1,481
|
1,381
|
1,447
|
||||||||
Loans held for sale
|
692
|
692
|
342
|
342
|
||||||||
Other financial instruments(e)
|
91
|
122
|
94
|
110
|
||||||||
Liabilities
|
||||||||||||
Borrowings(a)(f)(g)(h)
|
68,138
|
70,790
|
95,474
|
99,396
|
||||||||
Investment contracts
|
2,870
|
3,490
|
2,955
|
3,441
|
||||||||
(c) | Included $992 million and $1,006 million of accrued interest in estimated fair value at June 30, 2016 and December 31, 2015, respectively. |
(d) | Balances at June 30, 2016 and December 31, 2015 included $3,550 million and $10,386 million, respectively of high quality interest bearing deposits of global banks, that matured in April and July 2016. |
(e) | Principally comprises cost method investments. |
(f) | Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at June 30, 2016 and December 31, 2015 would have been reduced by $5,299 million and $3,001 million, respectively. |
(g) | Included $668 million and $1,103 million of accrued interest in estimated fair value at June 30, 2016 and December 31, 2015, respectively. |
(h) | Excluded $65,186 million and $84,704 million of intercompany payable to GE at June 30, 2016 and December 31, 2015 respectively, which includes a reduction for a $5,002 million short-term loan in second quarter of 2016 from GE Capital to GE, which bears the right of offset against amounts owed under the assumed debt agreement. |
NOTIONAL AMOUNTS OF LOAN COMMITMENTS
|
||||||
(In millions)
|
June 30, 2016
|
December 31, 2015
|
||||
Ordinary course of business lending commitments(a)
|
$
|
448
|
$
|
531
|
||
Unused revolving credit lines
|
213
|
279
|
||||
(a) | Excluded investment commitments of $758 million and $782 million at June 30, 2016 and December 31, 2015, respectively. |
FINANCIAL STATEMENT EFFECTS - CASH FLOW HEDGES
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Balance sheet changes
|
|||||||||||
Fair value of derivatives increase (decrease)
|
$
|
11
|
$
|
446
|
$
|
(45)
|
$
|
(637)
|
|||
Shareowners' equity (increase) decrease
|
(12)
|
(446)
|
45
|
637
|
|||||||
Earnings (loss) related to ineffectiveness
|
-
|
-
|
1
|
-
|
|||||||
Earnings (loss) effect of derivatives(a)
|
14
|
415
|
(71)
|
(582)
|
|||||||
(a) Offsets earnings effect of the hedged forecasted transaction
|
Interest rate forwards/swaps
|
Interest rate increases
|
Interest rate decreases
|
||
Pay fixed rate/receive floating rate
|
Fair value increases
|
Fair value decreases
|
||
Currency forwards/swaps
|
U.S. dollar strengthens
|
U.S. dollar weakens
|
||
Pay U.S. dollars/receive foreign currency
|
Fair value decreases
|
Fair value increases
|
||
Commodity derivatives
|
Price increases
|
Price decreases
|
||
Receive commodity/ pay fixed price
|
Fair value increases
|
Fair value decreases
|
||
FINANCIAL STATEMENT EFFECTS - FAIR VALUE HEDGES
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Balance sheet changes
|
|||||||||||
Fair value of derivative increase (decrease)
|
$
|
888
|
$
|
(1,924)
|
$
|
2,610
|
$
|
(873)
|
|||
Adjustment to carrying amount of hedged debt (increase) decrease
|
(933)
|
1,872
|
(2,688)
|
789
|
|||||||
Earnings (loss) related to hedge ineffectiveness
|
(46)
|
(52)
|
(77)
|
(84)
|
|||||||
Interest rate forwards/swaps
|
Interest rate increases
|
Interest rate decreases
|
||
Pay floating rate/receive fixed rate
|
Fair value decreases
|
Fair value increases
|
||
FINANCIAL STATEMENT EFFECTS - NET INVESTMENT HEDGES
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Balance sheet changes
|
|||||||||||
Fair value of derivatives increase (decrease)
|
$
|
(282)
|
$
|
(1,578)
|
$
|
47
|
$
|
3,367
|
|||
Fair value of non-derivatives (increase) decrease
|
(318)
|
-
|
(120)
|
-
|
|||||||
Shareowners' equity (increase) decrease
|
609
|
1,566
|
40
|
(3,423)
|
|||||||
Earnings (loss) related to
|
|||||||||||
spot-forward differences and ineffectiveness
|
8
|
(12)
|
(34)
|
(56)
|
|||||||
Earnings (loss) related to
|
|||||||||||
reclassification upon sale or liquidation(a)
|
(380)
|
(196)
|
(1,072)
|
589
|
|||||||
Currency forwards/swaps
|
U.S. dollar strengthens
|
U.S. dollar weakens
|
||
Receive U.S. dollars/pay foreign currency
|
Fair value increases
|
Fair value decreases
|
FINANCIAL STATEMENT EFFECTS - ECONOMIC HEDGES
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Balance sheet changes
|
|||||||||||
Change in fair value of economic hedge increase (decrease)
|
$
|
159
|
$
|
875
|
$
|
(143)
|
$
|
(2,243)
|
|||
Change in carrying amount of item being hedged increase (decrease)
|
(288)
|
(981)
|
(177)
|
2,148
|
|||||||
Earnings (loss) effect of economic hedges(a)
|
(130)
|
(106)
|
(321)
|
(95)
|
|||||||
Interest rate forwards/swaps interest rate
|
Interest rate increases
|
Interest rate decreases
|
||
Pay floating rate/receive fixed rate
|
Fair value decreases
|
Fair value increases
|
||
Currency forwards/swaps
|
U.S. dollar strengthens
|
U.S. dollar weakens
|
||
Pay U.S. dollars/receive foreign currency
|
Fair value decreases
|
Fair value increases
|
||
Receive U.S. dollars/pay foreign currency
|
Fair value increases
|
Fair value decreases
|
||
Commodity derivatives
|
Price increases
|
Price decreases
|
||
Receive commodity/ pay fixed price
|
Fair value increases
|
Fair value decreases
|
||
CARRYING AMOUNTS RELATED TO DERIVATIVES
|
|||||
(In millions)
|
June 30, 2016
|
December 31, 2015
|
|||
Derivative assets
|
$
|
7,709
|
$
|
7,391
|
|
Derivative liabilities
|
(4,477)
|
(5,681)
|
|||
Accrued interest
|
728
|
1,014
|
|||
Cash collateral & credit valuation adjustment
|
(2,991)
|
(1,141)
|
|||
Net Derivatives
|
969
|
1,583
|
|||
Securities held as collateral
|
(1,038)
|
(1,277)
|
|||
Net amount
|
$
|
(69)
|
$
|
306
|
|
Three months ended June 30
|
Six months ended June 30
|
||||||||||||||||
Effect on
|
Effect on
|
Effect on
|
Effect on
|
Effect on
|
Effect on
|
||||||||||||
(In millions)
|
hedging instrument
|
underlying
|
earnings
|
hedging instrument
|
underlying
|
earnings
|
|||||||||||
2016
|
|||||||||||||||||
Cash flow hedges
|
$
|
11
|
$
|
(12)
|
$
|
-
|
$
|
(45)
|
$
|
45
|
$
|
1
|
|||||
Fair value hedges
|
888
|
(933)
|
(46)
|
2,610
|
(2,688)
|
(77)
|
|||||||||||
Net investment hedges(a)
|
(600)
|
609
|
8
|
(73)
|
40
|
(34)
|
|||||||||||
Economic hedges(b)
|
159
|
(288)
|
(130)
|
(143)
|
(177)
|
(321)
|
|||||||||||
Total
|
$
|
(168)
|
$
|
(431)
|
|||||||||||||
2015
|
|||||||||||||||||
Cash flow hedges
|
$
|
446
|
$
|
(446)
|
$
|
-
|
$
|
(637)
|
$
|
637
|
$
|
-
|
|||||
Fair value hedges
|
(1,924)
|
1,872
|
(52)
|
(873)
|
789
|
(84)
|
|||||||||||
Net investment hedges(a)
|
(1,578)
|
1,566
|
(12)
|
3,367
|
(3,423)
|
(56)
|
|||||||||||
Economic hedges(b)
|
875
|
(981)
|
(106)
|
(2,243)
|
2,148
|
(95)
|
|||||||||||
Total
|
$
|
(170)
|
$
|
(235)
|
|||||||||||||
|
GE Capital Consolidated Securitization Entities (CSEs) were created to facilitate securitization of financial assets and other forms of asset-backed financing that serve as an alternative funding source by providing access to variable funding notes and term markets. The securitization transactions executed with these entities are similar to those used by many financial institutions and all are non-recourse. We provide servicing for substantially all of the assets in these entities.
|
|
Other remaining assets and liabilities of consolidated VIEs within GE and GE Capital relate primarily to three categories of entities: (1) joint ventures that lease equipment with $746 million of assets and $743 million of liabilities; (2) other entities that are involved in power generating and leasing activities with $385 million of assets and $177 million of liabilities; and (3) insurance entities that, among other lines of business, provide property and casualty and workers' compensation coverage for GE with $1,716 million of assets and $1,118 million of liabilities.
|
ASSETS AND LIABILITIES OF CONSOLIDATED VIEs
|
||||||||||||||
GE Capital
|
||||||||||||||
Trade receivables
|
Other
|
|||||||||||||
(In millions)
|
GE
|
securitization(a)
|
securitization(a)
|
Other
|
Total
|
|||||||||
June 30, 2016
|
||||||||||||||
Assets
|
||||||||||||||
Financing receivables, net
|
$
|
-
|
$
|
-
|
$
|
926
|
$
|
745
|
$
|
1,671
|
||||
Current receivables
|
152
|
2,683
|
(b)
|
-
|
1
|
2,836
|
||||||||
Investment securities
|
-
|
-
|
-
|
1,516
|
1,516
|
|||||||||
Other assets
|
1,099
|
-
|
33
|
1,144
|
2,276
|
|||||||||
Total
|
$
|
1,251
|
$
|
2,683
|
$
|
959
|
$
|
3,406
|
$
|
8,299
|
||||
Liabilities
|
||||||||||||||
Borrowings
|
$
|
41
|
$
|
-
|
$
|
827
|
$
|
867
|
$
|
1,735
|
||||
Non-recourse borrowings
|
-
|
1,905
|
100
|
-
|
2,005
|
|||||||||
Other liabilities
|
1,161
|
31
|
30
|
1,343
|
2,565
|
|||||||||
Total
|
$
|
1,202
|
$
|
1,936
|
$
|
957
|
$
|
2,210
|
$
|
6,305
|
||||
December 31, 2015
|
||||||||||||||
Assets
|
||||||||||||||
Financing receivables, net
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
882
|
$
|
882
|
||||
Current receivables
|
385
|
3,506
|
(b)
|
-
|
-
|
3,891
|
||||||||
Investment securities
|
-
|
-
|
-
|
1,404
|
1,404
|
|||||||||
Other assets
|
2,482
|
24
|
-
|
1,068
|
3,574
|
|||||||||
Total
|
$
|
2,867
|
$
|
3,530
|
$
|
-
|
$
|
3,354
|
$
|
9,751
|
||||
Liabilities
|
||||||||||||||
Borrowings
|
$
|
221
|
$
|
-
|
$
|
-
|
$
|
960
|
$
|
1,181
|
||||
Non-recourse borrowings
|
-
|
3,022
|
-
|
61
|
3,083
|
|||||||||
Other liabilities
|
2,289
|
34
|
-
|
1,234
|
3,557
|
|||||||||
Total
|
$
|
2,510
|
$
|
3,056
|
$
|
-
|
$
|
2,255
|
$
|
7,821
|
||||
(b)
|
In June 2016, we completed the sale of our Appliances business to Haier and sold all of the Appliances receivables purchased by the securitization trust to Haier for $773 million. Further information about the sale is provided in Note 2. At December 31, 2015, included $737 million of receivables purchased from Appliances.
|
INVESTMENTS IN UNCONSOLIDATED VIEs
|
|||||
(In millions)
|
June 30, 2016
|
December 31, 2015
|
|||
Other assets and investment securities
|
$
|
5,437
|
$
|
745
|
|
Financing receivables – net
|
13
|
13
|
|||
Total investments
|
5,450
|
758
|
|||
Contractual obligations to fund investments, guarantees or revolving lines of credit
|
866
|
29
|
|||
Total exposure(a)
|
$
|
6,316
|
$
|
787
|
|
Six months ended June 30
|
|||||
(In millions)
|
2016
|
2015
|
|||
Cash from (used for) operating activities-continuing operations
|
|||||
Combined
|
$
|
11,129
|
$
|
1,828
|
|
GE customer receivables sold to GE Capital
|
1,499
|
1,169
|
|||
GE Capital dividends to GE
|
(11,000)
|
(450)
|
|||
Other reclassifications and eliminations
|
308
|
385
|
|||
$
|
1,936
|
$
|
2,932
|
||
Cash from (used for) investing activities-continuing operations
|
|||||
Combined
|
$
|
39,496
|
$
|
26,605
|
|
GE customer receivables sold to GE Capital
|
(1,652)
|
(1,493)
|
|||
Other reclassifications and eliminations
|
4,570
|
(356)
|
|||
$
|
42,414
|
$
|
24,756
|
||
Cash from (used for) financing activities-continuing operations
|
|||||
Combined
|
$
|
(68,960)
|
$
|
(17,214)
|
|
GE customer receivables sold to GE Capital
|
153
|
324
|
|||
GE Capital dividends to GE
|
11,000
|
450
|
|||
Other reclassifications and eliminations
|
(4,878)
|
(30)
|
|||
$
|
(62,685)
|
$
|
(16,470)
|
||
|
General Electric Company (the Parent Company Guarantor) - prepared with investments in subsidiaries accounted for under the equity method of accounting and excluding any inter-segment eliminations. The equity basis earnings (losses) of subsidiaries are reflected in the captions "Equity in earnings (losses) of affiliates" and "Earnings (loss) from discontinued operations, net of tax";
|
|
GE Capital International Funding Company Unlimited Company (the Subsidiary Issuer) – incorporated in May 2015 as a finance subsidiary for debt and reflects activity subsequent to the issuance of new notes on October 26, 2015;
|
|
GE Capital International Holdings Limited (GECIHL) (the Subsidiary Guarantor) - prepared with investments in non-guarantor subsidiaries accounted for under the equity method of accounting and reflects activity subsequent to the GE Capital Reorganization on December 3, 2015. The equity basis earnings (losses) of subsidiaries are reflected in the captions "Equity in earnings (losses) of affiliates" and "Earnings (loss) from discontinued operations, net of tax";
|
|
Non-Guarantor Subsidiaries - prepared on an aggregated basis excluding any elimination or consolidation adjustments and includes predominantly all non-cash adjustments for cash flows;
|
|
Consolidating Adjustments - adjusting entries necessary to consolidate the Parent Company Guarantor with the Subsidiary Issuer, the Subsidiary Guarantor and Non-Guarantor Subsidiaries; and
|
|
Consolidated - prepared on a consolidated basis.
|
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||
FOR THE THREE MONTHS ENDED JUNE 30, 2016 (UNAUDITED)
|
||||||||||||
Parent
|
Non-
|
|||||||||||
Company
|
Subsidiary
|
Subsidiary
|
Guarantor
|
Consolidating
|
||||||||
(in millions)
|
Guarantor
|
Issuer
|
Guarantor
|
Subsidiaries
|
Adjustments
|
Consolidated
|
||||||
Revenues and other income
|
||||||||||||
Sales of goods and services
|
$
|
10,664
|
$
|
-
|
$
|
-
|
$
|
38,202
|
$
|
(20,838)
|
$
|
28,028
|
Other income
|
(264)
|
-
|
-
|
16,043
|
(12,629)
|
3,150
|
||||||
Equity in earnings (loss) of affiliates
|
5,228
|
-
|
(5)
|
15,305
|
(20,528)
|
-
|
||||||
GE Capital revenues from services
|
-
|
200
|
722
|
1,760
|
(365)
|
2,316
|
||||||
Total revenues and other income
|
15,628
|
200
|
717
|
71,310
|
(54,359)
|
33,494
|
||||||
Costs and expenses
|
||||||||||||
Interest and other financial charges
|
851
|
175
|
677
|
1,412
|
(1,790)
|
1,326
|
||||||
Investment contracts, insurance losses and
|
||||||||||||
insurance annuity benefits
|
-
|
-
|
-
|
815
|
(40)
|
776
|
||||||
Other costs and expenses
|
11,601
|
-
|
19
|
37,971
|
(22,022)
|
27,569
|
||||||
Total costs and expenses
|
12,453
|
175
|
695
|
40,198
|
(23,852)
|
29,670
|
||||||
Earnings (loss) from continuing
|
||||||||||||
operations before income taxes
|
3,175
|
25
|
21
|
31,111
|
(30,508)
|
3,824
|
||||||
Benefit (provision) for income taxes
|
256
|
(3)
|
(43)
|
(435)
|
(254)
|
(479)
|
||||||
Earnings (loss) from continuing operations
|
3,430
|
22
|
(22)
|
30,676
|
(30,762)
|
3,345
|
||||||
Earnings (loss) from discontinued
|
||||||||||||
operations, net of taxes
|
(541)
|
-
|
(521)
|
600
|
(80)
|
(541)
|
||||||
Net earnings (loss)
|
2,890
|
22
|
(542)
|
31,277
|
(30,841)
|
2,804
|
||||||
Less net earnings (loss) attributable to
|
||||||||||||
noncontrolling interests
|
-
|
-
|
-
|
(66)
|
(20)
|
(86)
|
||||||
Net earnings (loss) attributable to
|
||||||||||||
the Company
|
2,890
|
22
|
(542)
|
31,342
|
(30,822)
|
2,890
|
||||||
Other comprehensive income (loss)
|
807
|
-
|
246
|
579
|
(825)
|
807
|
||||||
Comprehensive income (loss) attributable
|
||||||||||||
to the Company
|
$
|
3,696
|
$
|
22
|
$
|
(297)
|
$
|
31,922
|
$
|
(31,646)
|
$
|
3,696
|
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||
FOR THE THREE MONTHS ENDED JUNE 30, 2015 (UNAUDITED)
|
||||||||||||
Parent
|
Non-
|
|||||||||||
Company
|
Subsidiary
|
Subsidiary
|
Guarantor
|
Consolidating
|
||||||||
(in millions)
|
Guarantor
|
Issuer
|
Guarantor
|
Subsidiaries
|
Adjustments
|
Consolidated
|
||||||
Revenues and other income
|
||||||||||||
Sales of goods and services
|
$
|
11,463
|
$
|
-
|
$
|
-
|
$
|
33,442
|
$
|
(18,849)
|
$
|
26,056
|
Other income
|
610
|
-
|
-
|
3,352
|
(3,183)
|
780
|
||||||
Equity in earnings (loss) of affiliates
|
2,336
|
-
|
-
|
3,338
|
(5,673)
|
-
|
||||||
GE Capital revenues from services
|
-
|
-
|
-
|
9,068
|
(6,678)
|
2,390
|
||||||
Total revenues and other income
|
14,409
|
-
|
-
|
49,200
|
(34,383)
|
29,226
|
||||||
Costs and expenses
|
||||||||||||
Interest and other financial charges
|
817
|
-
|
-
|
2,277
|
(2,382)
|
713
|
||||||
Investment contracts, insurance losses and
|
||||||||||||
insurance annuity benefits
|
-
|
-
|
-
|
709
|
(52)
|
657
|
||||||
Other costs and expenses
|
12,505
|
-
|
-
|
37,984
|
(25,244)
|
25,245
|
||||||
Total costs and expenses
|
13,322
|
-
|
-
|
40,971
|
(27,679)
|
26,614
|
||||||
Earnings (loss) from continuing
|
||||||||||||
operations before income taxes
|
1,086
|
-
|
-
|
8,229
|
(6,704)
|
2,612
|
||||||
Benefit (provision) for income taxes
|
497
|
-
|
-
|
(2,854)
|
1,558
|
(799)
|
||||||
Earnings (loss) from continuing operations
|
1,584
|
-
|
-
|
5,375
|
(5,146)
|
1,813
|
||||||
Earnings (loss) from discontinued
|
||||||||||||
operations, net of taxes
|
(2,943)
|
-
|
-
|
(367)
|
363
|
(2,947)
|
||||||
Net earnings (loss)
|
(1,360)
|
-
|
-
|
5,008
|
(4,783)
|
(1,134)
|
||||||
Less net earnings (loss) attributable to
|
||||||||||||
noncontrolling interests
|
-
|
-
|
-
|
97
|
128
|
225
|
||||||
Net earnings (loss) attributable to
|
||||||||||||
the Company
|
(1,360)
|
-
|
-
|
4,911
|
(4,911)
|
(1,360)
|
||||||
Other comprehensive income (loss)
|
4,158
|
-
|
-
|
1,206
|
(1,206)
|
4,158
|
||||||
Comprehensive income (loss) attributable
|
||||||||||||
to the Company
|
$
|
2,798
|
$
|
-
|
$
|
-
|
$
|
6,116
|
$
|
(6,116)
|
$
|
2,798
|
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||
FOR THE SIX MONTHS ENDED JUNE 30, 2016 (UNAUDITED)
|
||||||||||||
Parent
|
Non-
|
|||||||||||
Company
|
Subsidiary
|
Subsidiary
|
Guarantor
|
Consolidating
|
||||||||
(in millions)
|
Guarantor
|
Issuer
|
Guarantor
|
Subsidiaries
|
Adjustments
|
Consolidated
|
||||||
Revenues and other income
|
||||||||||||
Sales of goods and services
|
$
|
20,676
|
$
|
-
|
$
|
-
|
$
|
71,961
|
$
|
(39,295)
|
$
|
53,342
|
Other income
|
(38)
|
-
|
-
|
19,484
|
(16,288)
|
3,158
|
||||||
Equity in earnings (loss) of affiliates
|
6,135
|
-
|
665
|
28,928
|
(35,728)
|
-
|
||||||
GE Capital revenues from services
|
-
|
596
|
1,019
|
6,344
|
(3,121)
|
4,838
|
||||||
Total revenues and other income
|
26,774
|
596
|
1,683
|
126,717
|
(94,431)
|
61,339
|
||||||
Costs and expenses
|
||||||||||||
Interest and other financial charges
|
1,662
|
547
|
1,608
|
3,171
|
(3,927)
|
3,062
|
||||||
Investment contracts, insurance losses and
|
||||||||||||
insurance annuity benefits
|
-
|
-
|
-
|
1,487
|
(70)
|
1,417
|
||||||
Other costs and expenses
|
22,057
|
-
|
55
|
73,137
|
(42,452)
|
52,797
|
||||||
Total costs and expenses
|
23,719
|
548
|
1,663
|
77,795
|
(46,449)
|
57,276
|
||||||
Earnings (loss) from continuing
|
||||||||||||
operations before income taxes
|
3,055
|
48
|
20
|
48,922
|
(47,983)
|
4,063
|
||||||
Benefit (provision) for income taxes
|
875
|
(6)
|
(46)
|
(958)
|
(205)
|
(340)
|
||||||
Earnings (loss) from continuing operations
|
3,929
|
42
|
(26)
|
47,964
|
(48,187)
|
3,723
|
||||||
Earnings (loss) from discontinued
|
||||||||||||
operations, net of taxes
|
(849)
|
-
|
(996)
|
174
|
821
|
(849)
|
||||||
Net earnings (loss)
|
3,081
|
42
|
(1,022)
|
48,138
|
(47,366)
|
2,874
|
||||||
Less net earnings (loss) attributable to
|
||||||||||||
noncontrolling interests
|
-
|
-
|
-
|
(91)
|
(116)
|
(207)
|
||||||
Net earnings (loss) attributable to
|
||||||||||||
the Company
|
3,081
|
42
|
(1,022)
|
48,230
|
(47,250)
|
3,081
|
||||||
Other comprehensive income (loss)
|
1,631
|
(12)
|
63
|
847
|
(898)
|
1,631
|
||||||
Comprehensive income (loss) attributable
|
||||||||||||
to the Company
|
$
|
4,711
|
$
|
30
|
$
|
(958)
|
$
|
49,076
|
$
|
(48,148)
|
$
|
4,711
|
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||
FOR THE SIX MONTHS ENDED JUNE 30, 2015 (UNAUDITED)
|
||||||||||||
Parent
|
Non-
|
|||||||||||
Company
|
Subsidiary
|
Subsidiary
|
Guarantor
|
Consolidating
|
||||||||
(in millions)
|
Guarantor
|
Issuer
|
Guarantor
|
Subsidiaries
|
Adjustments
|
Consolidated
|
||||||
Revenues and other income
|
||||||||||||
Sales of goods and services
|
$
|
21,135
|
$
|
-
|
$
|
-
|
$
|
64,776
|
$
|
(36,172)
|
$
|
49,739
|
Other income
|
413
|
-
|
-
|
4,399
|
(3,889)
|
922
|
||||||
Equity in earnings (loss) of affiliates
|
(1,084)
|
-
|
-
|
14,976
|
(13,892)
|
-
|
||||||
GE Capital revenues from services
|
-
|
-
|
-
|
17,623
|
(12,819)
|
4,804
|
||||||
Total revenues and other income
|
20,464
|
-
|
-
|
101,775
|
(66,773)
|
55,466
|
||||||
Costs and expenses
|
||||||||||||
Interest and other financial charges
|
1,570
|
-
|
-
|
4,646
|
(4,886)
|
1,331
|
||||||
Investment contracts, insurance losses and
|
||||||||||||
insurance annuity benefits
|
-
|
-
|
-
|
1,354
|
(84)
|
1,270
|
||||||
Other costs and expenses
|
23,020
|
-
|
-
|
78,800
|
(53,187)
|
48,633
|
||||||
Total costs and expenses
|
24,589
|
-
|
-
|
84,800
|
(58,156)
|
51,233
|
||||||
Earnings (loss) from continuing
|
||||||||||||
operations before income taxes
|
(4,125)
|
-
|
-
|
16,975
|
(8,617)
|
4,233
|
||||||
Benefit (provision) for income taxes
|
1,071
|
-
|
-
|
(9,927)
|
1,763
|
(7,093)
|
||||||
Earnings (loss) from continuing operations
|
(3,054)
|
-
|
-
|
7,047
|
(6,853)
|
(2,860)
|
||||||
Earnings (loss) from discontinued
|
||||||||||||
operations, net of taxes
|
(11,879)
|
-
|
-
|
(2,693)
|
2,689
|
(11,883)
|
||||||
Net earnings (loss)
|
(14,933)
|
-
|
-
|
4,355
|
(4,165)
|
(14,743)
|
||||||
Less net earnings (loss) attributable to
|
||||||||||||
noncontrolling interests
|
-
|
-
|
-
|
197
|
(7)
|
190
|
||||||
Net earnings (loss) attributable to
|
||||||||||||
the Company
|
(14,933)
|
-
|
-
|
4,158
|
(4,158)
|
(14,933)
|
||||||
Other comprehensive income (loss)
|
(34)
|
-
|
-
|
(3,785)
|
3,785
|
(34)
|
||||||
Comprehensive income (loss) attributable
|
||||||||||||
to the Company
|
$
|
(14,967)
|
$
|
-
|
$
|
-
|
$
|
373
|
$
|
(373)
|
$
|
(14,967)
|
CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION
|
|||||||||||||||
JUNE 30, 2016 (UNAUDITED)
|
|||||||||||||||
Parent
|
Non-
|
||||||||||||||
Company
|
Subsidiary
|
Subsidiary
|
Guarantor
|
Consolidating
|
|||||||||||
(In millions)
|
Guarantor
|
Issuer
|
Guarantor
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||||
Assets
|
|||||||||||||||
Cash and equivalents
|
$
|
2,863
|
$
|
-
|
$
|
37
|
$
|
53,408
|
$
|
(4,185)
|
$
|
52,123
|
|||
Investment securities
|
7
|
-
|
-
|
46,336
|
(6,623)
|
39,720
|
|||||||||
Receivables - net
|
67,759
|
17,077
|
61,339
|
73,581
|
(175,943)
|
43,813
|
|||||||||
Inventories
|
5,295
|
-
|
-
|
21,957
|
(2,528)
|
24,723
|
|||||||||
Property, plant and equipment - net
|
5,494
|
-
|
-
|
46,395
|
(1,453)
|
50,436
|
|||||||||
Investment in subsidiaries(a)
|
284,657
|
-
|
77,908
|
420,869
|
(783,434)
|
-
|
|||||||||
Goodwill and intangible assets
|
7,709
|
-
|
-
|
54,590
|
21,448
|
83,747
|
|||||||||
All other assets
|
15,293
|
1,558
|
1,019
|
227,904
|
(188,741)
|
57,033
|
|||||||||
Assets of discontinued operations
|
-
|
-
|
-
|
-
|
49,865
|
49,865
|
|||||||||
Total assets
|
$
|
389,078
|
$
|
18,635
|
$
|
140,303
|
$
|
945,039
|
$
|
(1,091,594)
|
$
|
401,461
|
|||
Liabilities and equity
|
|||||||||||||||
Short-term borrowings
|
$
|
166,625
|
$
|
-
|
$
|
47,814
|
$
|
31,729
|
$
|
(214,242)
|
$
|
31,927
|
|||
Accounts payable
|
3,555
|
-
|
-
|
38,275
|
(28,715)
|
13,115
|
|||||||||
Other current liabilities
|
12,148
|
27
|
58
|
27,183
|
(674)
|
38,742
|
|||||||||
Long-term and non-recourse borrowings
|
78,035
|
18,361
|
62,445
|
84,118
|
(118,449)
|
124,509
|
|||||||||
All other liabilities
|
42,031
|
90
|
714
|
59,862
|
(13,665)
|
89,031
|
|||||||||
Liabilities of discontinued operations
|
-
|
-
|
-
|
-
|
14,384
|
14,384
|
|||||||||
Total Liabilities
|
302,394
|
18,478
|
111,031
|
241,166
|
(361,361)
|
311,708
|
|||||||||
Redeemable noncontrolling interests
|
-
|
-
|
-
|
2,266
|
803
|
3,070
|
|||||||||
GE shareowners' equity
|
84,991
|
158
|
29,271
|
699,629
|
(729,058)
|
84,991
|
|||||||||
Noncontrolling interests
|
1,693
|
-
|
-
|
1,977
|
(1,977)
|
1,693
|
|||||||||
Total equity
|
86,684
|
158
|
29,271
|
701,607
|
(731,036)
|
86,684
|
|||||||||
Total liabilities, redeemable
|
|||||||||||||||
noncontrolling interests and equity
|
$
|
389,078
|
$
|
18,635
|
$
|
140,303
|
$
|
945,039
|
$
|
(1,091,594)
|
$
|
401,461
|
|||
(a) | Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $26.0 billion and net assets of discontinued operations of $24.9 billion. |
CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION
|
|||||||||||||
DECEMBER 31, 2015
|
|||||||||||||
Parent
|
Non-
|
||||||||||||
Company
|
Subsidiary
|
Subsidiary
|
Guarantor
|
Consolidating
|
|||||||||
(In millions)
|
Guarantor
|
Issuer
|
Guarantor
|
Subsidiaries
|
Adjustments
|
Consolidated
|
|||||||
Assets
|
|||||||||||||
Cash and equivalents
|
$
|
4,137
|
$
|
-
|
$
|
-
|
$
|
86,955
|
$
|
(20,609)
|
$
|
70,483
|
|
Investment securities
|
14
|
-
|
-
|
40,886
|
(8,927)
|
31,973
|
|||||||
Receivables - net
|
88,696
|
33,232
|
69,306
|
75,909
|
(221,286)
|
45,856
|
|||||||
Inventories
|
5,447
|
-
|
-
|
19,762
|
(2,694)
|
22,515
|
|||||||
Property, plant and equipment - net
|
6,540
|
-
|
-
|
56,808
|
(9,253)
|
54,095
|
|||||||
Investment in subsidiaries(a)
|
274,471
|
-
|
78,505
|
405,686
|
(758,662)
|
-
|
|||||||
Goodwill and intangible assets
|
7,793
|
-
|
-
|
61,412
|
14,118
|
83,323
|
|||||||
All other assets
|
15,732
|
11
|
915
|
247,611
|
(200,392)
|
63,876
|
|||||||
Assets of discontinued operations
|
-
|
-
|
-
|
-
|
120,951
|
120,951
|
|||||||
Total assets
|
$
|
402,828
|
$
|
33,242
|
$
|
148,725
|
$
|
995,029
|
$
|
(1,086,754)
|
$
|
493,071
|
|
Liabilities and equity
|
|||||||||||||
Short-term borrowings
|
$
|
145,051
|
$
|
16,204
|
$
|
71,862
|
$
|
60,601
|
$
|
(243,858)
|
$
|
49,860
|
|
Accounts payable
|
6,096
|
-
|
-
|
37,636
|
(30,052)
|
13,680
|
|||||||
Other current liabilities
|
14,482
|
(1)
|
17
|
34,903
|
(7,860)
|
41,540
|
|||||||
Long-term and non-recourse borrowings
|
97,471
|
16,423
|
46,392
|
105,801
|
(118,345)
|
147,742
|
|||||||
All other liabilities
|
41,455
|
489
|
224
|
57,996
|
(9,514)
|
90,651
|
|||||||
Liabilities of discontinued operations
|
-
|
-
|
-
|
-
|
46,487
|
46,487
|
|||||||
Total Liabilities
|
304,555
|
33,115
|
118,495
|
296,937
|
(363,141)
|
389,961
|
|||||||
Redeemable noncontrolling interests
|
-
|
-
|
-
|
2,888
|
84
|
2,972
|
|||||||
GE shareowners' equity
|
98,274
|
127
|
30,230
|
693,589
|
(723,946)
|
98,274
|
|||||||
Noncontrolling interests
|
-
|
-
|
-
|
1,616
|
248
|
1,864
|
|||||||
Total equity
|
98,274
|
127
|
30,230
|
695,204
|
(723,697)
|
100,138
|
|||||||
Total liabilities, redeemable
|
|||||||||||||
noncontrolling interests and equity
|
$
|
402,828
|
$
|
33,242
|
$
|
148,725
|
$
|
995,029
|
$
|
(1,086,754)
|
$
|
493,071
|
|
(a) | Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $40.1 billion and net assets of discontinued operations of $40.0 billion. |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
|
||||||||||||
SIX MONTHS ENDED JUNE 30, 2016 (UNAUDITED)
|
||||||||||||
Parent
|
Non-
|
|||||||||||
Company
|
Subsidiary
|
Subsidiary
|
Guarantor
|
Consolidating
|
||||||||
(In millions)
|
Guarantor
|
Issuer
|
Guarantor
|
Subsidiaries
|
adjustments
|
Consolidated
|
||||||
Cash flows – operating activities
|
||||||||||||
Cash from (used for) operating activities -
|
||||||||||||
continuing operations
|
$
|
(21,092)
|
$
|
182
|
$
|
1,032
|
$
|
10,275
|
$
|
11,539
|
$
|
1,936
|
Cash from (used for) operating activities -
|
||||||||||||
discontinued operations
|
(849)
|
-
|
(996)
|
(3,826)
|
821
|
(4,849)
|
||||||
Cash from (used for) operating activities
|
(21,941)
|
182
|
37
|
6,449
|
12,361
|
(2,913)
|
||||||
Cash flows – investing activities
|
||||||||||||
Cash from (used for) investing activities –
|
||||||||||||
continuing operations
|
17,416
|
16,084
|
7,995
|
97,631
|
(96,712)
|
42,414
|
||||||
Cash from (used for) investing activities –
|
||||||||||||
discontinued operations
|
-
|
-
|
-
|
(10,646)
|
-
|
(10,646)
|
||||||
Cash from (used for) investing activities
|
17,416
|
16,084
|
7,995
|
86,985
|
(96,712)
|
31,768
|
||||||
Cash flows – financing activities
|
||||||||||||
Cash from (used for) financing activities –
|
||||||||||||
continuing operations
|
3,252
|
(16,265)
|
(7,995)
|
(142,451)
|
100,775
|
(62,685)
|
||||||
Cash from (used for) financing activities –
|
||||||||||||
discontinued operations
|
-
|
-
|
-
|
(711)
|
-
|
(711)
|
||||||
Cash from (used for) financing activities
|
3,252
|
(16,265)
|
(7,995)
|
(143,162)
|
100,775
|
(63,396)
|
||||||
Effect of currency exchange rate changes
|
||||||||||||
on cash and equivalents
|
-
|
-
|
-
|
(24)
|
-
|
(24)
|
||||||
Increase (decrease) in cash and equivalents
|
(1,274)
|
-
|
37
|
(49,752)
|
16,424
|
(34,565)
|
||||||
Cash and equivalents at beginning of year
|
4,137
|
-
|
-
|
107,350
|
(20,609)
|
90,878
|
||||||
Cash and equivalents at June 30
|
2,863
|
-
|
37
|
57,598
|
(4,185)
|
56,313
|
||||||
Less cash and equivalents of discontinued
|
||||||||||||
operations at June 30
|
-
|
-
|
-
|
4,190
|
-
|
4,190
|
||||||
Cash and equivalents of continuing operations
|
||||||||||||
at June 30
|
$
|
2,863
|
$
|
-
|
$
|
37
|
$
|
53,408
|
$
|
(4,185)
|
$
|
52,123
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
|
||||||||||||
SIX MONTHS ENDED JUNE 30, 2015 (UNAUDITED)
|
||||||||||||
Parent
|
Non-
|
|||||||||||
Company
|
Subsidiary
|
Subsidiary
|
Guarantor
|
Consolidating
|
||||||||
(In millions)
|
Guarantor
|
Issuer
|
Guarantor
|
Subsidiaries
|
adjustments
|
Consolidated
|
||||||
Cash flows – operating activities
|
||||||||||||
Cash from (used for) operating activities -
|
||||||||||||
continuing operations
|
$
|
(13,885)
|
$
|
-
|
$
|
-
|
$
|
66,152
|
$
|
(49,336)
|
$
|
2,932
|
Cash from (used for) operating activities -
|
||||||||||||
discontinued operations
|
(11,879)
|
-
|
-
|
18,644
|
2,689
|
9,454
|
||||||
Cash from (used for) operating activities
|
(25,763)
|
-
|
-
|
84,795
|
(46,647)
|
12,385
|
||||||
Cash flows – investing activities
|
||||||||||||
Cash from (used for) investing activities –
|
||||||||||||
continuing operations
|
26,326
|
-
|
-
|
(120,772)
|
119,202
|
24,756
|
||||||
Cash from (used for) investing activities –
|
||||||||||||
discontinued operations
|
-
|
-
|
-
|
(8,209)
|
-
|
(8,209)
|
||||||
Cash from (used for) investing activities
|
26,326
|
-
|
-
|
(128,981)
|
119,202
|
16,547
|
||||||
Cash flows – financing activities
|
||||||||||||
Cash from (used for) financing activities –
|
||||||||||||
continuing operations
|
(2,388)
|
-
|
-
|
58,236
|
(72,317)
|
(16,470)
|
||||||
Cash from (used for) financing activities –
|
||||||||||||
discontinued operations
|
-
|
-
|
-
|
(2,240)
|
-
|
(2,240)
|
||||||
Cash from (used for) financing activities
|
(2,388)
|
-
|
-
|
55,996
|
(72,317)
|
(18,710)
|
||||||
Effect of currency exchange rate changes
|
||||||||||||
on cash and equivalents
|
-
|
-
|
-
|
(2,887)
|
-
|
(2,887)
|
||||||
Increase (decrease) in cash and equivalents
|
(1,826)
|
-
|
-
|
8,923
|
238
|
7,336
|
||||||
Cash and equivalents at beginning of year
|
4,820
|
-
|
-
|
108,400
|
(22,203)
|
91,017
|
||||||
Cash and equivalents at June 30
|
2,994
|
-
|
-
|
117,324
|
(21,965)
|
98,353
|
||||||
Less cash and equivalents of discontinued
|
||||||||||||
operations at June 30
|
-
|
-
|
-
|
19,992
|
-
|
19,992
|
||||||
Cash and equivalents of continuing operations
|
||||||||||||
at June 30
|
$
|
2,994
|
$
|
-
|
$
|
-
|
$
|
97,331
|
$
|
(21,965)
|
$
|
78,360
|
FAIR VALUE OF DERIVATIVES
|
|||||||||||
June 30, 2016
|
December 31, 2015
|
||||||||||
(In millions)
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
|||||||
Derivatives accounted for as hedges
|
|||||||||||
Interest rate contracts
|
$
|
5,773
|
$
|
24
|
$
|
4,132
|
$
|
158
|
|||
Currency exchange contracts
|
335
|
630
|
1,109
|
1,383
|
|||||||
Other contracts
|
-
|
-
|
-
|
-
|
|||||||
6,108
|
653
|
5,241
|
1,541
|
||||||||
Derivatives not accounted for as hedges
|
|||||||||||
Interest rate contracts
|
119
|
101
|
119
|
44
|
|||||||
Currency exchange contracts
|
1,196
|
3,700
|
1,715
|
4,048
|
|||||||
Other contracts
|
286
|
23
|
315
|
49
|
|||||||
1,601
|
3,823
|
2,149
|
4,141
|
||||||||
Gross derivatives recognized in statement of
|
|||||||||||
financial position
|
|||||||||||
Gross derivatives
|
7,709
|
4,477
|
7,391
|
5,681
|
|||||||
Gross accrued interest
|
760
|
32
|
1,001
|
(13)
|
|||||||
8,469
|
4,509
|
8,392
|
5,668
|
||||||||
Amounts offset in statement of financial position
|
|||||||||||
Netting adjustments(a)
|
(2,978)
|
(2,969)
|
(4,326)
|
(4,326)
|
|||||||
Cash collateral(b)
|
(3,843)
|
(861)
|
(1,784)
|
(642)
|
|||||||
(6,821)
|
(3,830)
|
(6,110)
|
(4,968)
|
||||||||
Net derivatives recognized in statement of
|
|||||||||||
financial position
|
|||||||||||
Net derivatives
|
1,648
|
678
|
2,282
|
700
|
|||||||
Amounts not offset in statement of
|
|||||||||||
financial position
|
|||||||||||
Securities held as collateral(c)
|
(1,038)
|
-
|
(1,277)
|
-
|
|||||||
Net amount
|
$
|
610
|
$
|
678
|
$
|
1,005
|
$
|
700
|
|||
CASH FLOW HEDGE ACTIVITY
|
|||||||||||
Gain (loss) reclassified
|
|||||||||||
Gain (loss) recognized in AOCI
|
from AOCI into earnings
|
||||||||||
for the three months ended June 30
|
for the three months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Interest rate contracts
|
$
|
12
|
$
|
(7)
|
$
|
(26)
|
$
|
(22)
|
|||
Currency exchange contracts
|
1
|
452
|
40
|
437
|
|||||||
Commodity contracts
|
(1)
|
1
|
(1)
|
-
|
|||||||
Total(a)
|
$
|
12
|
$
|
446
|
$
|
14
|
$
|
415
|
|||
CASH FLOW HEDGE ACTIVITY
|
|||||||||||
Gain (loss) reclassified
|
|||||||||||
Gain (loss) recognized in AOCI
|
from AOCI into earnings
|
||||||||||
for the six months ended June 30
|
for the six months ended June 30
|
||||||||||
(In millions)
|
2016
|
2015
|
2016
|
2015
|
|||||||
Interest rate contracts
|
$
|
31
|
$
|
(10)
|
$
|
(55)
|
$
|
(61)
|
|||
Currency exchange contracts
|
(77)
|
(625)
|
(13)
|
(520)
|
|||||||
Commodity contracts
|
-
|
(2)
|
(3)
|
(1)
|
|||||||
Total(a)
|
$
|
(45)
|
$
|
(637)
|
$
|
(71)
|
$
|
(582)
|
|||
(a) | Gain (loss) is recorded in GE Capital revenues from services, interest and other financial charges, and other costs and expenses when reclassified to earnings. |
Exhibit 10(a)
|
Form of Agreement for Long-Term Performance Award Grants to Executive Officers under the General Electric Company 2007 Long-Term Incentive Plan (as amended and restated April 25, 2012).
|
|
Exhibit 11
Exhibit 12(a)
Exhibit 12(b)
|
Computation of Per Share Earnings.*
Computation of Ratio of Earnings to Fixed Charges.
Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends..
|
|
Exhibit 31(a)
|
Certification Pursuant to Rules 13a14(a) or 15d14(a) under the Securities Exchange Act of 1934, as Amended.
|
|
Exhibit 31(b)
|
Certification Pursuant to Rules 13a14(a) or 15d14(a) under the Securities Exchange Act of 1934, as Amended.
|
|
Exhibit 32
|
Certification Pursuant to 18 U.S.C. Section 1350.
|
|
Exhibit 101
|
The following materials from General Electric Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, formatted in XBRL (eXtensible Business Reporting Language); (i) Statement of Earnings (Loss) for the three months ended June 30, 2016 and 2015, (ii) Consolidated Statement of Comprehensive Income (Loss) for the three months ended June 30, 2016 and 2015, (iii) Consolidated Statement of Changes in Shareowners' Equity for the six months ended June 30, 2016 and 2015, (iv) Statement of Financial Position at June 30, 2016 and December 31, 2015, (v) Statement of Cash Flows for the six months ended June 30, 2016 and 2015, and (vi) Notes to Consolidated Financial Statements.
|
|
*
|
Data required by Financial Accounting Standards Board Accounting Standards Codification 260, Earnings Per Share, is provided in Note 13 to the Consolidated Financial Statements in this Report.
|
Item Number
|
|
Page(s)
|
||
Part I – FINANCIAL INFORMATION
|
||||
Item 1.
|
Financial Statements
|
61-117
|
||
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
4-55,57
|
||
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Not applicable(a)
|
||
Item 4.
|
Controls and Procedures
|
56
|
||
Part II – OTHER INFORMATION
|
||||
Item 1.
|
Legal Proceedings
|
58-59
|
||
Item 1A.
|
Risk Factors
|
Not applicable(b)
|
||
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
56
|
||
Item 3.
|
Defaults Upon Senior Securities
|
Not applicable
|
||
Item 4.
|
Mine Safety Disclosures
|
Not applicable
|
||
Item 5.
|
Other Information
|
Not applicable
|
||
Item 6.
|
Exhibits
|
118
|
||
Signatures
|
120
|
(a)
|
There have been no significant changes to our market risk since December 31, 2015. For a discussion of our exposure to market risk, refer to our Annual Report on Form 10-K for the year ended December 31, 2015.
|
(b)
|
There have been no significant changes to our risk factors since December 31, 2015. For a discussion of our risk factors, refer to our Annual Report on Form 10-K for the year ended December 31, 2015.
|
General Electric Company
(Registrant) |
|||
August 1, 2016
|
/s/ Jan R. Hauser
|
||
Date
|
Jan R. Hauser
Vice President and Controller
Duly Authorized Officer and Principal Accounting Officer
|