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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4
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Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)
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5
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Key Performance Indicators
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9
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Consolidated Results
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10
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Segment Operations
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12
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Corporate Items and Eliminations
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30
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Discontinued Operations
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32
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Other Consolidated Information
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33
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Statement of Financial Position
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34
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Financial Resources and Liquidity
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37
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Exposures
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42
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Critical Accounting Estimates
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44
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Other Items
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45
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Controls and Procedures
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46
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Other Financial Data
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46
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Regulations and Supervision
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47
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Legal Proceedings
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48
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Financial Statements and Notes
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51
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Exhibits
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104
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Form 10-Q Cross Reference Index
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105
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Signatures
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106
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obtaining (or the timing of obtaining) any required regulatory reviews or approvals or any other consents or approvals associated with our announced plan to reduce the size of our financial services businesses;
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our ability to complete incremental asset sales as part of that plan in a timely manner (or at all) and at the prices we have assumed;
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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 sell or the value of incremental assets to be sold as part of our announced plan to reduce the size of our financial services businesses as well as other aspects of that plan;
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the impact of conditions in the financial and credit markets on the availability and cost of GECC's funding, and GECC's exposure to counterparties;
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the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults;
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pending and future mortgage loan repurchase claims and other litigation claims 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 adequacy 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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GECC's ability to pay dividends to GE at the planned level, which may be affected by GECC'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;
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the price we realize on orders 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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adverse market conditions, timing of and ability to obtain required bank regulatory approvals, or other factors relating to us or Synchrony Financial that could prevent us from completing the Synchrony Financial split-off as planned;
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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 the proposed transactions and alliances with Alstom, Appliances and our announced plan to reduce the size of our financial services businesses, and our ability to realize anticipated earnings and savings;
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our success in integrating acquired businesses and operating joint ventures;
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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, 2014.
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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 General Electric Capital Corporation (GECC), whose continuing operations are presented on a one-line basis, giving effect to the elimination of transactions among such affiliates. Transactions between GE and GECC have not been eliminated at the GE level. We present the results of GE in the center columns 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 or Financial Services
– the adding together of all affiliates of GECC, giving effect to the elimination of transactions among such affiliates. We present the results of GECC in the right-side columns of our consolidated statements of earnings, financial position and cash flows. It should be noted that GECC is sometimes referred to as GE Capital or Capital, when not in the context of discussing segment results.
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GE consolidated
– the adding together of GE and GECC, giving effect to the elimination of transactions between GE and GECC. We present the results of GE consolidated in the left side columns of our consolidated statements of earnings, financial position and cash flows.
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Industrial
– GE excluding GECC. 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 GECC.
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Industrial segment
– the sum of our seven industrial reporting segments without giving effect to the elimination of transactions among such segments. We believe that this provides investors with a view as to the results of 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 seven industrial reporting segments and one financial services reporting segment, without giving effect to the elimination of transactions among such segments. We believe that this provides investors with a view as to the results of all of our segments, without inter-segment eliminations and corporate items.
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GE Capital Verticals or 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 and Healthcare Equipment Finance—that directly relate to the Company's core industrial domain and other operations, including Working Capital Solutions, our run-off insurance activities, and allocated corporate costs.
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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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Organic revenues
– revenues excluding the effects of acquisitions, dispositions and foreign currency exchange.
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Earnings
– unless otherwise indicated, we refer to captions such as "earnings from continuing operations attributable to the company" simply as earnings.
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Earnings per share (EPS)
– unless otherwise indicated, we refer to "earnings per share from continuing operations attributable to the company" simply as earnings per share.
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Operating earnings
– GE earnings from continuing operations attributable to the company excluding the impact of non-operating pension costs.
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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 page 12 for a description of the basis for segment profits.
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Operating pension costs
– comprise the service cost of benefits earned, prior service cost amortization and curtailment loss for our principal pension plans.
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Non-operating pension costs
– comprise the expected return on plan assets, interest cost on benefit obligations and net actuarial loss amortization for our principal pension plans.
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Operating earnings (loss) and operating EPS
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GE Industrial operating + Verticals EPS
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Operating and non-operating pension costs
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Industrial segment organic revenue growth
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Oil & Gas organic revenue and operating profit growth
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Industrial cash flows from operating activities (Industrial CFOA)
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Adjusted Corporate Costs (Operating)
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GE Capital ending net investment (ENI), excluding liquidity
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GECC Tier 1 common ratio estimate
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Power & Water
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Aviation
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Transportation
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Oil & Gas
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Healthcare
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Appliances & Lighting
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Energy Management
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GE Capital
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REVENUES PERFORMANCE
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INDUSTRIAL SEGMENT PROFIT
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INDUSTRIAL SEGMENT MARGIN
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||||||||||
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|||||||||||
2Q 2015
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YTD 2015
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|||||||||||
Industrial Segment
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0%
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0%
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||||||||||
Industrial Segment Organic*
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5%
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4%
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||||||||||
Financial Services
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(1)%
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(13)%
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||||||||||
EARNINGS PER SHARE
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INDUSTRIAL ORDERS
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INDUSTRIAL BACKLOG
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||||||||||
¢
¢
Earnings
¢
¢
Operating Earnings*
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Equipment
Services
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Equipment
Services
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||||||||
(a) Prior period reflects an update for Oil & Gas services backlog. | ||||||||||||
IND'L OPERATING + VERTICALS EPS*
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SIGNIFICANT DEVELOPMENTS IN 2015
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|||||||||||
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We announced the GE Capital Exit Plan in April 2015 and as of June 30, 2015 GECC's Real Estate business and most of the CLL business have been classified as discontinued operations.
During the first quarter of 2015, we signed an agreement to sell our consumer finance business in Australia and New Zealand for approximately 6.8 billion Australian dollars and 1.4 billion New Zealand dollars, respectively.
We acquired Milestone Aviation Group, a helicopter leasing business, for approximately $1.8 billion on January 30, 2015.
The effects of the stronger U.S. dollar in the six months ended June 30, 2015, primarily related to the euro, decreased consolidated revenues by $2.5 billion.
GE returned $4.8 billion to shareowners in the six months ended June 30, 2015 through dividends and stock buybacks.
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Verticals include businesses expected to be retained (GECAS, EFS, Healthcare Equipment Finance, Working Capital Solutions, and run-off insurance), including allocated corporate costs.
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||||||||||||
GE CFOA
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||||||||||||
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GECC Dividend
Industrial CFOA*
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REVENUES
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INDUSTRIAL SEGMENT EQUIPMENT
& SERVICES REVENUES
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Equipment
Services
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COMMENTARY: 2015 - 2014
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|||
THREE MONTHS ENDED
Consolidated revenues increased $0.5 billion, or 2%.
Industrial segment revenues were flat, reflecting the unfavorable impact of foreign exchange of $1.3 billion, partially offset by organic growth* of 5%.
Financial Services revenues decreased 1% as a result of the effects of dispositions, the effects of currency exchange and organic revenue declines, partially offset by higher gains and the effects of acquisitions.
The effects of acquisitions increased consolidated revenues $0.2 billion and $0.7 billion in 2015 and 2014, respectively. The effects of dispositions on revenues were an insignificant amount and a decrease $0.5 billion in 2015 and 2014, respectively.
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SIX MONTHS ENDED
Consolidated revenues decreased $1.4 billion, or 2%, primarily due to the impact of foreign exchange of $2.5 billion.
Industrial segment revenues were flat, reflecting the unfavorable impact of foreign exchange of $2.3 billion, partially offset by organic growth* of 4%.
Financial Services revenues decreased 13%, primarily due to the effects of the GE Capital Exit Plan.
The effects of acquisitions increased consolidated revenues $0.4 billion and $1.3 billion in 2015 and 2014, respectively. Dispositions affected our ongoing results through lower revenues of $0.3 billion and $2.5 billion in 2015 and 2014, respectively.
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EARNINGS (LOSS)
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INDUSTRIAL SELLING, GENERAL & ADMINISTRATIVE (SG&A) AS A % OF SALES
|
|
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Earnings
Operating Earnings*
|
||
COMMENTARY: 2015 - 2014
|
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THREE MONTHS ENDED
Consolidated earnings decreased $0.5 billion, or 17% primarily due to lower financial services income.
Industrial segment profit increased 5% with five of seven segments growing earnings.
Industrial segment margin increased 70 basis points (bps) driven by higher productivity, volume and pricing, partially offset by negative business mix and the impact of the stronger U.S. dollar.
Financial Services earnings decreased 78% primarily due to core decreases, including charges associated with the GE Capital Exit Plan, partially offset by higher gains and the effects of dispositions.
The effects of acquisitions on our consolidated net earnings were an insignificant amount and an increase of $0.1 billion in 2015 and 2014, respectively. The effects of dispositions on net earnings and settlements were an increase of $0.3 billion in 2015 and a decrease of $0.2 billion in 2014.
Industrial SG&A as a percentage of total sales decreased to 14.0% primarily as a result of favorable impacts of global cost reduction initiatives, lower acquisitions costs and non-operating pension costs, partially offset by restructuring costs.
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SIX MONTHS ENDED
Consolidated earnings decreased $10.1 billion primarily due to lower financial services income resulting from charges associated with the GE Capital Exit Plan of $9.4 billion. The charges included: tax expense related to expected repatriation of foreign earnings and write-off of deferred tax assets; asset impairments due to shortened hold periods; and charges on businesses held for sale, including goodwill allocation.
Industrial segment profit increased 6% with five of seven segments growing earnings.
Industrial segment margin increased 100 bps driven by higher productivity, volume and pricing, partially offset by the impact of the stronger U.S. dollar, the effects of inflation and negative business mix.
Financial Services earnings decreased significantly primarily due to charges associated with the GE Capital Exit Plan.
The effects of acquisitions on our consolidated net earnings were increases of $0.1 billion in 2015 and $0.2 billion in 2014. The effects of dispositions and settlements on net earnings were an increase of $0.3 billion in 2015 and a decrease of $1.4 billion in 2014.
Industrial SG&A as a percentage of total sales decreased to 15.0% primarily as a result of favorable impacts of global cost reduction initiatives, partially offset by higher non-operating pension costs, restructuring and acquisition-related costs.
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Interest and other financial charges and income taxes are excluded in determining segment profit (which we sometimes refer to as "operating profit") for the industrial segments.
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Interest and other financial charges and income taxes are included in determining segment profit (which we sometimes refer to as "net earnings") for the GE Capital segment.
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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)
|
2015
|
2014
|
V%
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2015
|
2014
|
V%
|
|||||||||||
Revenues
|
|||||||||||||||||
Power & Water
|
$
|
6,801
|
$
|
6,292
|
8 %
|
$
|
12,517
|
$
|
11,801
|
6 %
|
|||||||
Oil & Gas
|
4,062
|
4,761
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(15)%
|
8,023
|
9,069
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(12)%
|
|||||||||||
Energy Management
|
1,768
|
1,856
|
(5)%
|
3,453
|
3,528
|
(2)%
|
|||||||||||
Aviation
|
6,252
|
6,090
|
3 %
|
11,926
|
11,868
|
- %
|
|||||||||||
Healthcare
|
4,337
|
4,483
|
(3)%
|
8,412
|
8,681
|
(3)%
|
|||||||||||
Transportation
|
1,420
|
1,306
|
9 %
|
2,728
|
2,533
|
8 %
|
|||||||||||
Appliances & Lighting
|
2,235
|
2,120
|
5 %
|
4,176
|
3,977
|
5 %
|
|||||||||||
Total industrial segment revenues
|
26,875
|
26,908
|
- %
|
51,235
|
51,457
|
- %
|
|||||||||||
GE Capital
|
6,218
|
6,275
|
(1)%
|
11,141
|
12,839
|
(13)%
|
|||||||||||
Total segment revenues
|
33,093
|
33,183
|
- %
|
62,376
|
64,296
|
(3)%
|
|||||||||||
Corporate items and eliminations
|
(339)
|
(923)
|
(63)%
|
(1,325)
|
(1,808)
|
(27)%
|
|||||||||||
Consolidated revenues
|
$
|
32,754
|
$
|
32,260
|
2 %
|
$
|
61,051
|
$
|
62,488
|
(2)%
|
|||||||
Segment profit (loss)
|
|||||||||||||||||
Power & Water
|
$
|
1,221
|
$
|
1,133
|
8 %
|
$
|
2,092
|
$
|
2,021
|
4 %
|
|||||||
Oil & Gas
|
583
|
665
|
(12)%
|
1,015
|
1,111
|
(9)%
|
|||||||||||
Energy Management
|
82
|
69
|
19 %
|
110
|
74
|
49 %
|
|||||||||||
Aviation
|
1,269
|
1,197
|
6 %
|
2,583
|
2,312
|
12 %
|
|||||||||||
Healthcare
|
705
|
730
|
(3)%
|
1,292
|
1,300
|
(1)%
|
|||||||||||
Transportation
|
331
|
270
|
23 %
|
556
|
472
|
18 %
|
|||||||||||
Appliances & Lighting
|
165
|
102
|
62 %
|
268
|
155
|
73 %
|
|||||||||||
Total industrial segment profit
|
4,356
|
4,166
|
5 %
|
7,916
|
7,445
|
6 %
|
|||||||||||
GE Capital
|
218
|
1,002
|
(78)%
|
(8,289)
|
2,248
|
U
|
|||||||||||
Total segment profit (loss)
|
4,574
|
5,168
|
(11)%
|
(373)
|
9,693
|
U
|
|||||||||||
Corporate items and eliminations
|
(1,186)
|
(1,474)
|
(20)%
|
(2,878)
|
(3,016)
|
(5)%
|
|||||||||||
GE interest and other financial charges
|
(414)
|
(401)
|
3 %
|
(803)
|
(765)
|
5 %
|
|||||||||||
GE provision for income taxes
|
(584)
|
(409)
|
43 %
|
(890)
|
(727)
|
22 %
|
|||||||||||
Earnings (loss) from continuing operations
|
|||||||||||||||||
attributable to the Company
|
2,390
|
2,884
|
(17)%
|
(4,944)
|
5,185
|
U
|
|||||||||||
Earnings (loss) from discontinued
|
|||||||||||||||||
operations, net of taxes
|
(3,750)
|
661
|
U
|
(9,989)
|
1,359
|
U
|
|||||||||||
Consolidated net earnings (loss)
|
|||||||||||||||||
attributable to the Company
|
$
|
(1,360)
|
$
|
3,545
|
U
|
$
|
(14,933)
|
$
|
6,544
|
U
|
|||||||
\
|
\
|
2015 YTD SUB-SEGMENT REVENUES
|
EQUIPMENT/SERVICES REVENUES
|
|||
(a)
Includes Water Process Technologies and Nuclear
|
|
|||
Services Equipment
|
||||
ORDERS
|
BACKLOG
|
|||
|
Equipment
Services
|
|
Equipment
Services
|
|
UNIT SALES
|
||||
|
SEGMENT REVENUES & PROFIT
|
SEGMENT PROFIT MARGIN
|
|||||
Revenues
Profit
|
|
|||||
SEGMENT REVENUES & PROFIT WALK:
|
COMMENTARY: 2015 - 2014
|
|||||
THREE MONTHS ENDED
|
Segment revenues down $0.7 billion or 15%;
Segment profit down $0.1 billion or 12% as a result of:
The decrease in revenues was primarily due to the effects of the stronger U.S. dollar and lower volume, mainly driven by lower equipment sales at Turbomachinery and M&C and lower service sales at Surface. Organic revenues* for the second quarter of 2015 were down 4% compared with the second quarter of 2014.
The decrease in profit reflects the effects of the stronger U.S. dollar ($0.1 billion). Organic operating profit* grew 5% in the second quarter of 2015.
|
|||||
Revenues
|
Profit
|
|||||
June 30, 2014
|
$
|
4.8
|
$
|
0.7
|
||
Volume
|
(0.3)
|
-
|
||||
Price
|
-
|
-
|
||||
Foreign Exchange
|
(0.5)
|
(0.1)
|
||||
(Inflation)/Deflation
|
N/A
|
-
|
||||
Mix
|
N/A
|
-
|
||||
Productivity
|
N/A
|
-
|
||||
Other
|
0.1
|
0.1
|
||||
June 30, 2015
|
$
|
4.1
|
$
|
0.6
|
||
SIX MONTHS ENDED
|
Segment revenues down $1.1 billion or 12%;
Segment profit down $0.1 billion or 9% as a result of:
The decrease in revenues was primarily due to the effects of the stronger U.S. dollar and lower volume. Organic revenues* for the six months ended June 30, 2015 were down 2% compared with the same period of 2014.
The decrease in profit reflects the effects of the stronger U.S. dollar ($0.2 billion). Organic operating profit* grew 8% in the six months ended June 30, 2015.
|
|||||
Revenues
|
Profit
|
|||||
June 30, 2014
|
$
|
9.1
|
$
|
1.1
|
||
Volume
|
(0.2)
|
-
|
||||
Price
|
-
|
-
|
||||
Foreign Exchange
|
(0.8)
|
(0.2)
|
||||
(Inflation)/Deflation
|
N/A
|
-
|
||||
Mix
|
N/A
|
-
|
||||
Productivity
|
N/A
|
0.2
|
||||
Other
|
(0.1)
|
(0.1)
|
||||
June 30, 2015
|
$
|
8.0
|
$
|
1.0
|
||
2015 YTD SUB-SEGMENT REVENUES
|
EQUIPMENT/SERVICES REVENUES
|
|||
|
|
|||
Services
Equipment
|
||||
ORDERS
|
BACKLOG
|
|||
|
Equipment
Services
|
|
Equipment
Services
|
|
SEGMENT REVENUES & PROFIT
|
SEGMENT PROFIT MARGIN
|
||||
|
|
||||
Revenue
Profit
|
|||||
COMMENTARY: 2015 - 2014
|
|||||
THREE MONTHS ENDED
Segment revenues down $0.1 billion or 5% as a result of:
|
SIX MONTHS ENDED
Segment revenues down $0.1 billion or 2% as a result of:
|
||||
The impact of the stronger U.S. dollar ($0.2 billion), partially offset by higher sales volume ($0.1 billion).
|
The impact of the stronger U.S. dollar ($0.3 billion), partially offset by higher volume ($0.2 billion).
|
||||
Segment profit up 19% as a result of
:
|
Segment profit up 49% as a result of
:
|
||||
Continued cost reductions.
|
Improved productivity ($0.1 billion).
|
2015 YTD SUB-SEGMENT REVENUES
|
EQUIPMENT/SERVICES REVENUES
|
|||
|
|
|||
Services
Equipment
|
||||
ORDERS
|
BACKLOG
|
|||
|
Equipment
Services
|
|
Equipment
Services
|
|
UNIT SALES
|
||||
(a)
GEnx engines are a subset of commercial engines
(b)
Commercial spares shipment rate in millions of dollars per day
|
SEGMENT REVENUES & PROFIT
|
SEGMENT PROFIT MARGIN
|
|||||
Revenues
Profit
|
|
|||||
SEGMENT REVENUES & PROFIT WALK:
|
COMMENTARY: 2015 - 2014
|
|||||
THREE MONTHS ENDED
|
Segment revenues up $0.2 billion or 3%;
Segment profit up $0.1 billion or 6% as a result of:
The increase in revenues was primarily due to higher prices in our Commercial Engines business and spare parts.
The increase in profit was mainly due to higher prices in our Commercial Engines business and spare parts, partially offset by higher inflation.
|
|||||
Revenues
|
Profit
|
|||||
June 30, 2014
|
$
|
6.1
|
$
|
1.2
|
||
Volume
|
-
|
-
|
||||
Price
|
0.2
|
0.2
|
||||
Foreign Exchange
|
-
|
-
|
||||
(Inflation)/Deflation
|
N/A
|
(0.1)
|
||||
Mix
|
N/A
|
-
|
||||
Productivity
|
N/A
|
-
|
||||
Other
|
-
|
(0.1)
|
||||
June 30, 2015
|
$
|
6.3
|
$
|
1.3
|
||
SIX MONTHS ENDED
|
Segment revenues up $0.1 billion;
Segment profit up $0.3 billion or 12% as a result of:
The increase in revenues was primarily due to higher prices, partially offset by lower volume driven by Military.
The increase in profit was mainly due to higher prices in our Commercial Engines and Commercial Services businesses as well as improved productivity. These increases were partially offset by the effects of inflation and lower volume.
|
|||||
Revenues
|
Profit
|
|||||
June 30, 2014
|
$
|
11.9
|
$
|
2.3
|
||
Volume
|
(0.3)
|
(0.1)
|
||||
Price
|
0.4
|
0.4
|
||||
Foreign Exchange
|
-
|
-
|
||||
(Inflation)/Deflation
|
N/A
|
(0.2)
|
||||
Mix
|
N/A
|
0.1
|
||||
Productivity
|
N/A
|
0.1
|
||||
Other
|
-
|
-
|
||||
June 30, 2015
|
$
|
11.9
|
$
|
2.6
|
||
2015 YTD SUB-SEGMENT REVENUES
|
EQUIPMENT/SERVICES REVENUES
|
|||
|
|
|||
Services
Equipment
|
||||
ORDERS
|
BACKLOG
|
|||
|
Equipment
Services
|
|
Equipment
Services
|
|
SEGMENT REVENUES & PROFIT
|
SEGMENT PROFIT MARGIN
|
|||||
Revenue
Profit
|
|
|||||
SEGMENT REVENUES & PROFIT WALK:
|
COMMENTARY: 2015 - 2014
|
|||||
THREE MONTHS ENDED
|
Segment revenues down $0.1 billion or 3%;
Segment profit down 3% as a result of:
The decrease in revenues was due to the impact of the stronger U.S. dollar and lower prices, mainly in Healthcare Systems. These decreases were partially offset by higher volume, mainly driven by Life Sciences.
The decrease in profit was due to lower prices, mainly in Healthcare Systems, partially offset by higher productivity, including SG&A cost reductions.
|
|||||
Revenues
|
Profit
|
|||||
June 30, 2014
|
$
|
4.5
|
$
|
0.7
|
||
Volume
|
0.2
|
-
|
||||
Price
|
(0.1)
|
(0.1)
|
||||
Foreign Exchange
|
(0.3)
|
-
|
||||
(Inflation)/Deflation
|
NA
|
-
|
||||
Mix
|
N/A
|
-
|
||||
Productivity
|
N/A
|
0.1
|
||||
Other
|
-
|
-
|
||||
June 30, 2015
|
$
|
4.3
|
$
|
0.7
|
||
SIX MONTHS ENDED
|
Segment revenues down $0.3 billion or 3%;
Segment profit down 1% as a result of:
The decrease in revenues was due to the impact of the stronger U.S. dollar and lower prices, mainly in Healthcare Systems. These decreases were partially offset by higher volume, mainly driven by Life Sciences.
The decrease in profit was due to the effects of inflation and lower prices, mainly in Healthcare Systems, partially offset by higher productivity, including SG&A cost reductions, and increased volume.
|
|||||
Revenues
|
Profit
|
|||||
June 30, 2014
|
$
|
8.7
|
$
|
1.3
|
||
Volume
|
0.4
|
0.1
|
||||
Price
|
(0.1)
|
(0.1)
|
||||
Foreign Exchange
|
(0.5)
|
-
|
||||
(Inflation)/Deflation
|
N/A
|
(0.1)
|
||||
Mix
|
N/A
|
-
|
||||
Productivity
|
N/A
|
0.2
|
||||
Other
|
-
|
-
|
||||
June 30, 2015
|
$
|
8.4
|
$
|
1.3
|
||
2015 YTD SUB-SEGMENT REVENUES
|
EQUIPMENT/SERVICES REVENUES
|
|||
(a)
Includes Marine, Stationary & Drilling
|
|
|||
Services
Equipment
|
||||
ORDERS
|
BACKLOG
|
|||
|
Equipment
Services
|
|
Equipment
Services
|
|
UNIT SALES
|
||||
|
SEGMENT REVENUES & PROFIT
|
SEGMENT PROFIT MARGIN
|
|
Revenue
Profit
|
|
|
COMMENTARY: 2015 - 2014
|
||
THREE MONTHS ENDED
Segment revenues up $0.1 billion or 9% as a result of:
Higher volume ($0.1 billion), primarily due to higher locomotive and services sales.
Segment profit up $0.1 billion or 23% as a result of:
Improved productivity ($0.1 billion).
|
SIX MONTHS ENDED
Segment revenues up $0.2 billion or 8% as a result of:
Higher volume ($0.2 billion), due to higher locomotive equipment sales.
Segment profit up $0.1 billion or 18% as a result of:
Higher productivity driven by locomotive sales ($0.1 billion), partially offset by an unfavorable business mix ($0.1 billion).
|
2015 YTD SUB-SEGMENT REVENUES
|
|||
|
|||
ENDING NET INVESTMENT, EXCLUDING LIQUIDITY*
|
TIER 1 COMMON RATIO ESTIMATE*
|
||
|
|
||
SIGNIFICANT TRENDS & DEVELOPMENTS
|
|
The GE Capital Exit Plan
- As previously discussed, on April 10, 2015, the Company announced its plan to reduce the size of the financial services businesses through the sale of most of the assets of GECC over the following 24 months. It is expected that as a result of the GE Capital Exit Plan, the GE Capital businesses that will remain with GE will account for about $90 billion in ending net investment (ENI), excluding liquidity, including about $40 billion in the U.S. ENI is a metric used to measure the total capital invested in the financial services businesses. GE Capital's ENI, excluding liquidity* was $179 billion at June 30, 2015.
|
|
Budapest Bank
– On June 29, 2015 we closed the sale of Budapest Bank to Hungary's government.
|
|
Australia and New Zealand (ANZ) Consumer Lending
- During the first quarter of 2015, we signed an agreement to sell our consumer finance business in Australia and New Zealand to a consortium including KKR, Varde Partners and Deutsche Bank for approximately 6.0 billion Australian dollars and 1.4 billion New Zealand dollars, respectively.
|
|
Milestone Aviation Group
– On January 30, 2015, GECAS acquired Milestone Aviation Group, a helicopter leasing business, for approximately $1.8 billion.
|
|
Synchrony Financial
– In connection with Synchrony Financial's planned separation from GE, Synchrony Financial filed the related application to the Federal Reserve Board on April 30, 2015. For a further discussion of the Synchrony Financial transaction, see the Synchrony Financial annual report on Form 10-K for the year ended December 31, 2014 and the 2015 quarterly reports on Forms 10-Q.
|
|
Dividends
- GECC paid no quarterly dividends and $0.5 billion of quarterly dividends to GE in the three and six months ended June 30, 2015, respectively.
|
SEGMENT REVENUES & PROFIT (LOSS)
(a)
|
||
Revenue
Profit (Loss)
|
(
a)
Interest and other financial charges and income taxes are included in determining segment profit (loss) for the GE Capital segment.
|
|
COMMENTARY: 2015 - 2014
|
(a)
|
Included non-operating pension cost* of $0.7 billion and $0.5 billion in the three months ended June 30, 2015 and 2014, respectively, and $1.4 billion and $1.1 billion in the six months ended June 30, 2015 and 2014, respectively, which includes expected return on plan assets, interest costs and non-cash amortization of actuarial gains and losses.
|
|
$0.5 billion higher other income from a settlement related to the NBCU transaction, and
|
|
$0.1 billion of lower inter-segment eliminations.
|
|
$0.5 billion higher income from a settlement related to the NBCU transaction, partially offset by $0.1 billion higher costs associated with our principal retirement plans including the effects of lower discount rates and updated mortality assumptions.
|
|
$0.5 billion higher other income from a settlement related to the NBCU transaction.
|
|
$0.5 billion higher income from the NBCU transaction, partially offset by $0.3 billion higher costs associated with our principal retirement plans including the effects of lower discount rates and updated mortality assumptions.
|
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(3,750)
|
$
|
661
|
$
|
(9,989)
|
$
|
1,359
|
|||
|
$3.7 billion after-tax loss at our CLL business (including a $4.3 billion loss on the planned disposal).
|
|
$0.4 billion of earnings from operations at our CLL business and
|
|
$0.3 billion of earnings from operations at our Real Estate business.
|
|
$7.7 billion after-tax loss at our CLL business (including a $7.2 billion loss on the planned disposal) and
|
|
$2.3 billion after-tax loss at our Real Estate business (including a $2.4 billion loss on the planned disposal).
|
|
$0.9 billion of earnings from operations at our CLL business and
|
|
$0.5 billion of earnings from operations at our Real Estate business.
|
PROVISION FOR INCOME TAXES
|
|||
|
|
The consolidated income tax provision increased due to additional tax expense associated with the GE Capital Exit Plan, a smaller benefit from the adjustment to the projected full-year effective tax rate and an increase in pre-tax income taxed at above the average tax rate.
|
|
The consolidated tax provision includes $0.4 billion and $0.6 billion for GE (excluding GECC) for the second quarters of 2014 and 2015, respectively. The increase related primarily to higher pre-tax income taxed at above the average tax rate.
|
|
The consolidated income tax rate for the six months ended June 30, 2015 was greater than 100% as the positive tax expense of $7.1 billion exceeded pre-tax income of $2.3 billion due to charges associated with GE Capital Exit Plan.
|
|
As discussed in Note 10 to the consolidated financial statements, during the first six months ended June 30, 2015 in conjunction with the GE Capital Exit Plan, we incurred tax expense of $6.3 billion related to expected repatriation of foreign earnings and write-off of deferred tax assets.
|
|
The increase in the income tax expense is primarily due to the tax expense incurred as part of the GE Capital Exit Plan.
|
|
The consolidated tax provision includes $0.7 billion and $0.9 billion for GE (excluding GECC) for the first six months of 2014 and 2015, respectively. The increase is related primarily to higher pre-tax income taxed at above the average tax rate.
|
|
|
|
GECC Financing receivables-net decreased $41.4 billion
. See the following GECC Financing Receivables section for additional information.
|
|
GECC Financing receivables held for sale increased $27.2 billion
. See the following GECC Financing Receivables Held for Sale section for additional information.
|
|
Assets of discontinued operations decreased $32.1 billion
, primarily due to Real Estate of $19.3 billion and the CLL businesses of $12.6 billion. See Note 2 for additional information.
|
|
Borrowings decreased $19.1 billion
, primarily due to net repayments on GECC borrowings of $16.0 billion, along with a $6.2 billion reduction in the balances driven by the strengthening of the U.S. dollar against all major currencies, partially offset by new debt issuances by GE of $3.5 billion.
|
|
Deferred income taxes increased $5.4 billion
primarily due to deferred tax asset write-offs resulting from the GE Capital Exit Plan, along with the remeasurement of postretirement benefit plans.
|
GECC FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES(a)
|
||||||
(Dollars in millions)
|
June 30, 2015
|
December 31, 2014
|
||||
Financing receivables
|
$
|
84,476
|
$
|
126,561
|
||
Nonaccrual receivables
|
368
|
(b)
|
1,996
|
|||
Allowance for losses
|
3,393
|
4,104
|
||||
Nonaccrual financing receivables as a percent of financing receivables
|
0.4
|
%
|
1.6
|
%
|
||
Allowance for losses as a percent of nonaccrual financing receivables
|
(c)
|
205.6
|
||||
Allowance for losses as a percent of total financing receivables
|
4.0
|
3.2
|
||||
(a)
|
For additional information related to the portfolio of financing receivables, refer to the GECC quarterly report on Form 10-Q for the period ended June 30, 2015.
|
(b)
|
Substantially all of our $0.4 billion of nonaccrual loans at June 30, 2015, are currently paying in accordance with the contractual terms. We continue to accrue interest on consumer credit cards until the accounts are written off in the period the account becomes 180 days past due.
|
(c)
|
Not meaningful.
|
CASH AND EQUIVALENTS
|
|||||||
(In billions)
|
June 30, 2015
|
June 30, 2015
|
|||||
GE(a)
|
$
|
17.0
|
U.S.
|
$
|
28.2
|
||
GECC(b)
|
74.6
|
Non-U.S.(c)
|
63.4
|
||||
(a)
|
At June 30, 2015, $2.7 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, 2015, GECC cash and equivalents of about $19.8 billion were in regulated banks and insurance entities and were subject to regulatory restrictions.
|
(c)
|
Of this amount at June 30, 2015, $10.4 billion was considered indefinitely reinvested. Indefinitely reinvested cash held outside of the U.S. 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 indefinitely reinvested cash held outside the U.S., we would be subject to additional U.S. income taxes and foreign withholding taxes.
|
COMMITTED UNUSED CREDIT LINES
|
||
(In billions)
|
June 30, 2015
|
|
Revolving credit agreements (exceeding one year)
|
$
|
24.5
|
Revolving credit agreements (364-day line)(a)
|
21.4
|
|
Total(b)
|
$
|
45.9
|
(a)
|
Included $20.6 billion that contains a term-out feature that allows us to extend borrowings for two years from the date on which such borrowings would otherwise be due.
|
(b)
|
Total committed unused credit lines were extended to us by 48 financial institutions. GECC can borrow up to $45.1 billion under these credit lines. GE can borrow up to $15.5 billion under certain of these credit lines.
|
COMMERCIAL PAPER
|
|||||
(In billions)
|
GE
|
GECC
|
|||
Average commercial paper borrowings during the second quarter of 2015
|
$
|
8.6
|
$
|
25.1
|
|
Maximum commercial paper borrowings outstanding during the second quarter of 2015
|
11.0
|
25.8
|
|||
ALTERNATIVE FUNDING
|
|||
(In billions)
|
|||
Total alternative funding at December 31, 2014
|
$
|
86.4
|
|
Total alternative funding at June 30, 2015
|
78.4
|
||
Bank deposits
|
45.8
|
||
Non-recourse securitization borrowings
|
17.0
|
||
Funding secured by real estate, aircraft and other collateral
|
5.2
|
||
GE Interest Plus notes
|
2.5
|
||
Bank unsecured
|
7.9
|
||
OPERATING CASH FLOWS
|
INVESTING CASH FLOWS
|
FINANCING CASH FLOWS
|
||||||||
2014
|
2015
|
2014
|
2015
|
2014
|
2015
|
|||||
|
|
|
|
An increase of operating cash collections of $0.5 billion to $51.0 billion in 2015. This increase is primarily driven by a $0.5 billion payment from a settlement related to the NBCU transaction, prepayments on service contracts of $0.2 billion and higher collections of current receivables of $0.3 billion. These increases were partially offset by lower progress collections of $0.6 billion.
|
|
A decrease of operating cash payments of $0.9 billion to $47.6 billion in 2015. This decrease is primarily driven by decreased spend on inventory in the six months ended June 30, 2015 compared with that of 2014.
|
|
Further, GECC paid quarterly dividends of $0.5 billion and no special dividends to GE in the six months ended June 30, 2015. GECC paid quarterly dividends of $1.1 billion and special dividends of $0.3 billion to GE in the six months ended June 30, 2014.
|
|
Lower business acquisition activity of $2.0 billion primarily driven by the 2014 acquisitions of certain Thermo Fisher Scientific Inc. life-science businesses for $1.1 billion, Cameron's Reciprocating Compression Division for $0.6 billion and API Healthcare (API) for $0.3 billion.
|
|
This is partially offset by $0.3 billion lower proceeds from principal business dispositions.
|
|
A decrease in net repurchases of GE shares for treasury in accordance with our share repurchase program of $1.9 billion.
|
|
A decrease in net change in borrowings (maturities of 90 days or less) of $0.7 billion.
|
|
Further, GE issued $3.4 billion and $3.0 billion of unsecured notes in the six months ended June 30, 2015 and 2014.
|
OPERATING CASH FLOWS
|
INVESTING CASH FLOWS
|
FINANCING CASH FLOWS
|
||||||||
2014
|
2015
|
2014
|
2015
|
2014
|
2015
|
|||||
|
|
|
|
A decrease in net cash collateral activity with counterparties on derivative contracts of $2.5 billion.
|
|
In 2015, we closed the sale of certain of our Real Estate businesses for proceeds of $15.6 billion.
|
|
A net increase in financing receivables activity of $2.4 billion driven by higher net collections (which includes sales) of financing receivables.
|
|
The 2014 payment of our obligation to the buyer of GE Money Japan for $1.7 billion.
|
|
These increases were partially offset by the 2015 acquisition of Milestone Aviation Group, resulting in net cash paid of $1.7 billion.
|
|
Higher net repayments of borrowings of $4.2 billion driven primarily by an increase in long-term debt maturities and a decrease in issuances of senior unsecured notes.
|
|
A decrease in deposits at our banks of $2.0 billion.
|
|
These increases were partially offset by GECC paying quarterly dividends of $0.5 billion and no special dividends to GE in the six months ended June 30, 2015. GECC paid quarterly dividends of $1.1 billion and special dividends of $0.3 billion to GE in the six months ended June 30, 2014.
|
Rest of
|
Total
|
||||||||||||||||||||||
(In millions)
|
Spain
|
Portugal
|
Ireland
|
Italy
|
Greece
|
Hungary
|
Europe
|
Europe
|
|||||||||||||||
Financing receivables - net (a)(d)
|
$
|
356
|
$
|
77
|
$
|
252
|
$
|
1,411
|
$
|
-
|
$
|
364
|
$
|
3,451
|
$
|
5,911
|
|||||||
Financing receivables held for sale
|
344
|
62
|
14
|
-
|
-
|
-
|
26,173
|
26,593
|
|||||||||||||||
Investments(b)(c)
|
3
|
-
|
-
|
-
|
-
|
-
|
1,810
|
1,813
|
|||||||||||||||
Cost and equity method investments(d)
|
-
|
-
|
430
|
-
|
-
|
-
|
292
|
722
|
|||||||||||||||
Derivatives, net of collateral(b)(e)
|
2
|
-
|
-
|
3
|
-
|
-
|
276
|
281
|
|||||||||||||||
Equipment leased to others (ELTO)(f)
|
346
|
168
|
507
|
460
|
271
|
226
|
7,068
|
9,046
|
|||||||||||||||
Total funded exposures(g)(h)
|
$
|
1,051
|
$
|
307
|
$
|
1,203
|
$
|
1,874
|
$
|
271
|
$
|
590
|
$
|
39,070
|
$
|
44,366
|
|||||||
Unfunded commitments(i)
|
$
|
-
|
$
|
-
|
$
|
43
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2,375
|
$
|
2,418
|
|||||||
(a)
|
Financing receivable amounts are classified based on the location or nature of the related obligor.
|
(b)
|
Investments and derivatives are classified based on the location of the parent of the obligor or issuer.
|
(c)
|
Included $0.4 billion related to financial institutions, $47.4 million related to non-financial institutions and $1.4 billion related to sovereign issuers. We held no investments issued by sovereign entities in the countries of focus.
|
(d)
|
Substantially all is non-sovereign.
|
(e)
|
Net of cash collateral; entire amount is non-sovereign.
|
(f)
|
These assets are held under long-term investment and operating strategies, and our ELTO strategies contemplate an ability to redeploy assets under lease should default by the lessee occur. The values of these assets could be subject to decline or impairment in the current environment.
|
(g)
|
Excluded $32.8 billion of cash and equivalents, which is composed of $22.3 billion of cash on short-term placement with highly rated global financial institutions based in Europe, sovereign central banks and agencies or supranational entities, of which $0.2 billion is in focus countries, and $10.6 billion of cash and equivalents placed with highly rated European financial institutions on a short-term basis, secured by U.S. Treasury securities ($5.9 billion) and sovereign bonds of non-focus countries ($4.7 billion), where the value of our collateral exceeds the amount of our cash exposure.
|
(h)
|
Rest of Europe included $1.6 billion and $0.1 billion of exposure for Russia and Ukraine, respectively, substantially all ELTO and financing receivables related to commercial aircraft in our GECAS portfolio.
|
(i)
|
Includes ordinary course of business lending commitments, commercial and consumer unused revolving credit lines, inventory financing arrangements and investment commitments.
|
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)
|
||||||||||
2015
|
||||||||||
April
|
1,732
|
$
|
26.96
|
1,611
|
||||||
May
|
2,888
|
$
|
27.36
|
2,807
|
||||||
June
|
763
|
$
|
27.27
|
677
|
||||||
Total
|
5,383
|
$
|
27.22
|
5,095
|
$
|
49.9
|
billion
|
|||
(a) | This category included 288 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, 2015, we were authorized to repurchase up to $50 billion of our common stock through 2018 and we had repurchased a total of approximately $0.1 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. |
Statement of Earnings (Loss)
|
52
|
|||
Consolidated Statement of Comprehensive Income (Loss)
|
56
|
|||
Consolidated Statement of Changes in Shareowners' Equity
|
57
|
|||
Statement of Financial Position
|
58
|
|||
Statement of Cash Flows
|
60
|
|||
Notes to Consolidated Financial Statements
|
||||
1
|
Basis of Presentation and Summary of Significant Accounting Policies
|
62
|
||
2
|
Businesses Held for Sale, Financing Receivables Held for Sale and Discontinued Operations
|
64
|
||
3
|
Investment Securities
|
69
|
||
4
|
Inventories
|
73
|
||
5
|
GECC Financing Receivables and Allowance for Losses
|
73
|
||
6
|
Property, Plant and Equipment
|
74
|
||
7
|
Acquisitions, Goodwill and Other Intangible Assets
|
75
|
||
8
|
Borrowings and Bank Deposits
|
78
|
||
9
|
Postretirement Benefit Plans
|
79
|
||
10
|
Income Taxes
|
80
|
||
11
|
Shareowners' Equity
|
81
|
||
12
|
GECC Revenues from Services
|
83
|
||
13
|
Earnings Per Share Information
|
84
|
||
14
|
Fair Value Measurements
|
85
|
||
15
|
Financial Instruments
|
90
|
||
16
|
Variable Interest Entities
|
96
|
||
17
|
Intercompany Transactions
|
98
|
||
18
|
Supplemental Information About the Credit Quality of Financing Receivables and Allowance for Losses
|
99
|
||
STATEMENT OF EARNINGS (LOSS)
|
|||||
(UNAUDITED)
|
|||||
Three months ended June 30
|
|||||
General Electric Company
|
|||||
and consolidated affiliates
|
|||||
(In millions; per-share amounts in dollars)
|
2015
|
2014
|
|||
Revenues and other income
|
|||||
Sales of goods
|
$
|
18,545
|
$
|
18,229
|
|
Sales of services
|
7,512
|
7,869
|
|||
Other income
|
780
|
338
|
|||
GECC earnings from continuing operations
|
-
|
-
|
|||
GECC revenues from services (Note 12)
|
5,917
|
5,824
|
|||
Total revenues and other income
|
32,754
|
32,260
|
|||
Costs and expenses
|
|||||
Cost of goods sold
|
14,302
|
14,655
|
|||
Cost of services sold
|
5,721
|
5,351
|
|||
Interest and other financial charges
|
1,286
|
1,299
|
|||
Investment contracts, insurance losses and
|
|||||
insurance annuity benefits
|
660
|
658
|
|||
Provision for losses on financing receivables (Note 5)
|
783
|
948
|
|||
Other costs and expenses
|
6,419
|
6,273
|
|||
Total costs and expenses
|
29,171
|
29,184
|
|||
Earnings (loss) from continuing operations before income taxes
|
3,583
|
3,076
|
|||
Benefit (provision) for income taxes
|
(968)
|
(192)
|
|||
Earnings (loss) from continuing operations
|
2,615
|
2,884
|
|||
Earnings (loss) from discontinued operations, net of taxes (Note 2)
|
(3,750)
|
661
|
|||
Net earnings (loss)
|
(1,135)
|
3,545
|
|||
Less net earnings (loss) attributable to noncontrolling interests
|
225
|
-
|
|||
Net earnings (loss) attributable to the Company
|
(1,360)
|
3,545
|
|||
Preferred stock dividends declared
|
-
|
-
|
|||
Net earnings (loss) attributable to GE common shareowners
|
$
|
(1,360)
|
$
|
3,545
|
|
Amounts attributable to GE common shareowners
|
|||||
Earnings (loss) from continuing operations
|
$
|
2,615
|
$
|
2,884
|
|
Less net earnings (loss) attributable to noncontrolling interests
|
225
|
-
|
|||
Earnings (loss) from continuing operations attributable to the Company
|
2,390
|
2,884
|
|||
GECC preferred stock dividends declared
|
-
|
-
|
|||
Earnings (loss) from continuing operations attributable
|
|||||
to GE common shareowners
|
2,390
|
2,884
|
|||
Earnings (loss) from discontinued operations, net of taxes
|
(3,750)
|
661
|
|||
Net earnings (loss) attributable to GE common shareowners
|
$
|
(1,360)
|
$
|
3,545
|
|
Per-share amounts
|
|||||
Earnings (loss) from continuing operations
|
|||||
Diluted earnings (loss) per share
|
$
|
0.24
|
$
|
0.28
|
|
Basic earnings (loss) per share
|
$
|
0.24
|
$
|
0.29
|
|
Net earnings (loss)
|
|||||
Diluted earnings (loss) per share
|
$
|
(0.13)
|
$
|
0.35
|
|
Basic earnings (loss) per share
|
$
|
(0.13)
|
$
|
0.35
|
|
Dividends declared per common share
|
$
|
0.23
|
$
|
0.22
|
|
STATEMENT OF EARNINGS (LOSS) (CONTINUED)
|
|||||||||||
(UNAUDITED)
|
|||||||||||
Three months ended June 30
|
|||||||||||
GE(a)
|
Financial Services (GECC)
|
||||||||||
(In millions; per-share amounts in dollars)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Revenues and other income
|
|||||||||||
Sales of goods
|
$
|
18,548
|
$
|
18,265
|
$
|
22
|
$
|
34
|
|||
Sales of services
|
7,592
|
7,961
|
-
|
-
|
|||||||
Other income
|
770
|
292
|
-
|
-
|
|||||||
GECC earnings (loss) from continuing operations
|
379
|
1,163
|
-
|
-
|
|||||||
GECC revenues from services (Note 12)
|
-
|
-
|
6,196
|
6,241
|
|||||||
Total revenues and other income
|
27,289
|
27,681
|
6,218
|
6,275
|
|||||||
Costs and expenses
|
|||||||||||
Cost of goods sold
|
14,307
|
14,693
|
22
|
31
|
|||||||
Cost of services sold
|
5,801
|
5,443
|
-
|
-
|
|||||||
Interest and other financial charges
|
414
|
401
|
996
|
1,024
|
|||||||
Investment contracts, insurance losses and
|
|||||||||||
insurance annuity benefits
|
-
|
-
|
710
|
698
|
|||||||
Provision for losses on financing receivables (Note 5)
|
-
|
-
|
783
|
948
|
|||||||
Other costs and expenses
|
3,661
|
3,861
|
2,851
|
2,618
|
|||||||
Total costs and expenses
|
24,183
|
24,398
|
5,362
|
5,319
|
|||||||
Earnings (loss) from continuing operations before income taxes
|
3,106
|
3,283
|
856
|
956
|
|||||||
Benefit (provision) for income taxes
|
(584)
|
(409)
|
(384)
|
217
|
|||||||
Earnings (loss) from continuing operations
|
2,522
|
2,874
|
472
|
1,173
|
|||||||
Earnings (loss) from discontinued operations, net of taxes (Note 2)
|
(3,750)
|
661
|
(3,747)
|
665
|
|||||||
Net earnings (loss)
|
(1,228)
|
3,535
|
(3,275)
|
1,838
|
|||||||
Less net earnings (loss) attributable to noncontrolling interests
|
132
|
(10)
|
93
|
10
|
|||||||
Net earnings (loss) attributable to the Company
|
(1,360)
|
3,545
|
(3,368)
|
1,828
|
|||||||
Preferred stock dividends declared
|
-
|
-
|
(161)
|
(161)
|
|||||||
Net earnings (loss) attributable to GE common shareowners
|
$
|
(1,360)
|
$
|
3,545
|
$
|
(3,529)
|
$
|
1,667
|
|||
Amounts attributable to GE common shareowners:
|
|||||||||||
Earnings (loss) from continuing operations
|
$
|
2,522
|
$
|
2,874
|
$
|
472
|
$
|
1,173
|
|||
Less net earnings (loss) attributable to noncontrolling interests
|
132
|
(10)
|
93
|
10
|
|||||||
Earnings (loss) from continuing operations attributable to the Company
|
2,390
|
2,884
|
379
|
1,163
|
|||||||
GECC preferred stock dividends declared
|
-
|
-
|
(161)
|
(161)
|
|||||||
Earnings (loss) from continuing operations attributable
|
|||||||||||
to GE common shareowners
|
2,390
|
2,884
|
218
|
1,002
|
|||||||
Earnings (loss) from discontinued operations, net of taxes
|
(3,750)
|
661
|
(3,747)
|
665
|
|||||||
Net earnings (loss) attributable to GE common shareowners
|
$
|
(1,360)
|
$
|
3,545
|
$
|
(3,529)
|
$
|
1,667
|
|||
(a)
|
Represents the adding together of all affiliated companies except General Electric Capital Corporation (GECC or Financial Services), which is presented on a one-line basis. See Note 1.
|
STATEMENT OF EARNINGS (LOSS)
|
|||||
(UNAUDITED)
|
|||||
Six months ended June 30
|
|||||
General Electric Company
|
|||||
and consolidated affiliates
|
|||||
(In millions; per-share amounts in dollars)
|
2015
|
2014
|
|||
Revenues and other income
|
|||||
Sales of goods
|
$
|
35,144
|
$
|
35,171
|
|
Sales of services
|
14,596
|
14,778
|
|||
Other income
|
922
|
534
|
|||
GECC earnings from continuing operations
|
-
|
-
|
|||
GECC revenues from services (Note 12)
|
10,389
|
12,005
|
|||
Total revenues and other income
|
61,051
|
62,488
|
|||
Costs and expenses
|
|||||
Cost of goods sold
|
27,421
|
28,368
|
|||
Cost of services sold
|
10,768
|
10,160
|
|||
Interest and other financial charges
|
2,514
|
2,650
|
|||
Investment contracts, insurance losses and
|
|||||
insurance annuity benefits
|
1,276
|
1,278
|
|||
Provision for losses on financing receivables (Note 5)
|
3,898
|
1,835
|
|||
Other costs and expenses
|
12,827
|
12,426
|
|||
Total costs and expenses
|
58,704
|
56,717
|
|||
Earnings (loss) from continuing operations before income taxes
|
2,347
|
5,771
|
|||
Benefit (provision) for income taxes
|
(7,101)
|
(633)
|
|||
Earnings (loss) from continuing operations
|
(4,754)
|
5,138
|
|||
Earnings (loss) from discontinued operations, net of taxes (Note 2)
|
(9,989)
|
1,359
|
|||
Net earnings (loss)
|
(14,743)
|
6,497
|
|||
Less net earnings (loss) attributable to noncontrolling interests
|
190
|
(47)
|
|||
Net earnings (loss) attributable to the Company
|
(14,933)
|
6,544
|
|||
Preferred stock dividends declared
|
-
|
-
|
|||
Net earnings (loss) attributable to GE common shareowners
|
$
|
(14,933)
|
$
|
6,544
|
|
Amounts attributable to GE common shareowners
|
|||||
Earnings (loss) from continuing operations
|
$
|
(4,754)
|
$
|
5,138
|
|
Less net earnings (loss) attributable to noncontrolling interests
|
190
|
(47)
|
|||
Earnings (loss) from continuing operations attributable to the Company
|
(4,944)
|
5,185
|
|||
GECC preferred stock dividends declared
|
-
|
-
|
|||
Earnings (loss) from continuing operations attributable
|
|||||
to GE common shareowners
|
(4,944)
|
5,185
|
|||
Earnings (loss) from discontinued operations, net of taxes
|
(9,989)
|
1,359
|
|||
Net earnings (loss) attributable to GE common shareowners
|
$
|
(14,933)
|
$
|
6,544
|
|
Per-share amounts
|
|||||
Earnings (loss) from continuing operations
|
|||||
Diluted earnings (loss) per share
|
$
|
(0.49)
|
$
|
0.51
|
|
Basic earnings (loss) per share
|
$
|
(0.49)
|
$
|
0.52
|
|
Net earnings (loss)
|
|||||
Diluted earnings (loss) per share
|
$
|
(1.48)
|
$
|
0.65
|
|
Basic earnings (loss) per share
|
$
|
(1.48)
|
$
|
0.65
|
|
Dividends declared per common share
|
$
|
0.46
|
$
|
0.44
|
|
STATEMENT OF EARNINGS (LOSS) (CONTINUED)
|
|||||||||||
(UNAUDITED)
|
|||||||||||
Six months ended June 30
|
|||||||||||
GE(a)
|
Financial Services (GECC)
|
||||||||||
(In millions; per-share amounts in dollars)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Revenues and other income
|
|||||||||||
Sales of goods
|
$
|
35,196
|
$
|
35,253
|
$
|
43
|
$
|
61
|
|||
Sales of services
|
14,784
|
14,984
|
-
|
-
|
|||||||
Other income
|
822
|
453
|
-
|
-
|
|||||||
GECC earnings (loss) from continuing operations
|
(8,128)
|
2,409
|
-
|
-
|
|||||||
GECC revenues from services (Note 12)
|
-
|
-
|
11,098
|
12,778
|
|||||||
Total revenues and other income
|
42,674
|
53,099
|
11,141
|
12,839
|
|||||||
Costs and expenses
|
|||||||||||
Cost of goods sold
|
27,477
|
28,455
|
40
|
56
|
|||||||
Cost of services sold
|
10,956
|
10,366
|
-
|
-
|
|||||||
Interest and other financial charges
|
803
|
765
|
1,945
|
2,123
|
|||||||
Investment contracts, insurance losses and
|
|||||||||||
insurance annuity benefits
|
-
|
-
|
1,354
|
1,341
|
|||||||
Provision for losses on financing receivables (Note 5)
|
-
|
-
|
3,898
|
1,835
|
|||||||
Other costs and expenses
|
7,486
|
7,669
|
5,637
|
5,148
|
|||||||
Total costs and expenses
|
46,722
|
47,255
|
12,874
|
10,503
|
|||||||
Earnings (loss) from continuing operations before income taxes
|
(4,048)
|
5,844
|
(1,733)
|
2,336
|
|||||||
Benefit (provision) for income taxes
|
(890)
|
(727)
|
(6,211)
|
94
|
|||||||
Earnings (loss) from continuing operations
|
(4,938)
|
5,117
|
(7,944)
|
2,430
|
|||||||
Earnings (loss) from discontinued operations, net of taxes (Note 2)
|
(9,989)
|
1,359
|
(9,985)
|
1,364
|
|||||||
Net earnings (loss)
|
(14,927)
|
6,476
|
(17,929)
|
3,794
|
|||||||
Less net earnings (loss) attributable to noncontrolling interests
|
6
|
(68)
|
184
|
21
|
|||||||
Net earnings (loss) attributable to the Company
|
(14,933)
|
6,544
|
(18,113)
|
3,773
|
|||||||
Preferred stock dividends declared
|
-
|
-
|
(161)
|
(161)
|
|||||||
Net earnings (loss) attributable to GE common shareowners
|
$
|
(14,933)
|
$
|
6,544
|
$
|
(18,274)
|
$
|
3,612
|
|||
Amounts attributable to GE common shareowners:
|
|||||||||||
Earnings (loss) from continuing operations
|
$
|
(4,938)
|
$
|
5,117
|
$
|
(7,944)
|
$
|
2,430
|
|||
Less net earnings (loss) attributable to noncontrolling interests
|
6
|
(68)
|
184
|
21
|
|||||||
Earnings (loss) from continuing operations attributable to the Company
|
(4,944)
|
5,185
|
(8,128)
|
2,409
|
|||||||
GECC preferred stock dividends declared
|
-
|
-
|
(161)
|
(161)
|
|||||||
Earnings (loss) from continuing operations attributable
|
|||||||||||
to GE common shareowners
|
(4,944)
|
5,185
|
(8,289)
|
2,248
|
|||||||
Earnings (loss) from discontinued operations, net of taxes
|
(9,989)
|
1,359
|
(9,985)
|
1,364
|
|||||||
Net earnings (loss) attributable to GE common shareowners
|
$
|
(14,933)
|
$
|
6,544
|
$
|
(18,274)
|
$
|
3,612
|
|||
(a)
|
Represents the adding together of all affiliated companies except General Electric Capital Corporation (GECC or Financial Services), which is presented on a one-line basis. See Note 1.
|
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)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Net earnings (loss)
|
$
|
(1,135)
|
$
|
3,545
|
$
|
(14,743)
|
$
|
6,497
|
|||
Less net earnings (loss) attributable to noncontrolling interests
|
225
|
-
|
190
|
(47)
|
|||||||
Net earnings (loss) attributable to the Company
|
$
|
(1,360)
|
$
|
3,545
|
$
|
(14,933)
|
$
|
6,544
|
|||
Other comprehensive income (loss)
|
|||||||||||
Investment securities
|
$
|
(682)
|
$
|
277
|
$
|
(449)
|
$
|
734
|
|||
Currency translation adjustments
|
1,815
|
(108)
|
(3,521)
|
(59)
|
|||||||
Cash flow hedges
|
86
|
13
|
40
|
81
|
|||||||
Benefit plans
|
2,951
|
518
|
3,860
|
1,213
|
|||||||
Other comprehensive income (loss)
|
4,170
|
700
|
(70)
|
1,969
|
|||||||
Less other comprehensive income (loss) attributable to noncontrolling interests
|
12
|
9
|
(36)
|
7
|
|||||||
Other comprehensive income (loss) attributable to the Company
|
$
|
4,158
|
$
|
691
|
$
|
(34)
|
$
|
1,962
|
|||
Comprehensive income (loss)
|
$
|
3,035
|
$
|
4,245
|
$
|
(14,813)
|
$
|
8,466
|
|||
Less comprehensive income (loss) attributable to noncontrolling interests
|
237
|
9
|
154
|
(40)
|
|||||||
Comprehensive income (loss) attributable to the Company
|
$
|
2,798
|
$
|
4,236
|
$
|
(14,967)
|
$
|
8,506
|
|||
GENERAL ELECTRIC COMPANY AND CONSOLIDATED AFFILIATES
|
|||||
CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS' EQUITY
|
|||||
(UNAUDITED)
|
|||||
Six months ended June 30
|
|||||
(In millions)
|
2015
|
2014
|
|||
Shareowners' equity balance at January 1
|
$
|
128,159
|
$
|
130,566
|
|
Increases (decreases) from net earnings (loss) attributable to the Company
|
(14,933)
|
6,544
|
|||
Dividends and other transactions with shareowners
|
(4,645)
|
(4,421)
|
|||
Other comprehensive income (loss) attributable to the Company
|
(34)
|
1,962
|
|||
Net sales (purchases) of shares for treasury
|
1,042
|
(673)
|
|||
Changes in other capital
|
(86)
|
35
|
|||
Ending balance at June 30
|
109,503
|
134,013
|
|||
Noncontrolling interests
|
8,776
|
6,054
|
|||
Total equity balance at June 30
|
$
|
118,279
|
$
|
140,067
|
|
STATEMENT OF FINANCIAL POSITION
|
|||||
General Electric Company
|
|||||
and consolidated affiliates
|
|||||
(In millions, except share amounts)
|
June 30, 2015
|
December 31, 2014
|
|||
(Unaudited)
|
|||||
Assets
|
|||||
Cash and equivalents
|
$
|
91,666
|
$
|
84,927
|
|
Investment securities (Note 3)
|
39,438
|
38,400
|
|||
Current receivables
|
21,760
|
23,237
|
|||
Inventories (Note 4)
|
18,704
|
17,689
|
|||
Financing receivables – net (Note 5 and 18)
|
70,827
|
110,255
|
|||
Other GECC receivables
|
6,316
|
6,920
|
|||
Property, plant and equipment – net (Note 6)
|
51,039
|
48,336
|
|||
Investment in GECC
|
-
|
-
|
|||
Goodwill (Note 7)
|
62,184
|
62,983
|
|||
Other intangible assets – net (Note 7)
|
13,668
|
13,855
|
|||
All other assets
|
45,511
|
47,905
|
|||
Financing receivables held for sale (Note 2)
|
26,574
|
421
|
|||
Assets of businesses held for sale (Note 2)
|
8,363
|
6,300
|
|||
Assets of discontinued operations (Note 2)
|
154,876
|
186,934
|
|||
Total assets(a)
|
$
|
610,926
|
$
|
648,162
|
|
Liabilities and equity
|
|||||
Short-term borrowings (Note 8)
|
$
|
67,822
|
$
|
70,714
|
|
Accounts payable, principally trade accounts
|
12,017
|
12,572
|
|||
Progress collections and price adjustments accrued
|
11,442
|
12,537
|
|||
Dividends payable
|
2,322
|
2,317
|
|||
Other GE current liabilities
|
12,502
|
12,682
|
|||
Non-recourse borrowings of consolidated securitization entities (Note 8)
|
16,991
|
19,369
|
|||
Bank deposits (Note 8)
|
45,799
|
43,841
|
|||
Long-term borrowings (Note 8)
|
185,351
|
199,182
|
|||
Investment contracts, insurance liabilities and insurance annuity benefits
|
26,835
|
27,578
|
|||
All other liabilities
|
61,027
|
63,720
|
|||
Deferred income taxes
|
67
|
(5,352)
|
|||
Liabilities of businesses held for sale (Note 2)
|
1,491
|
3,375
|
|||
Liabilities of discontinued operations (Note 2)
|
48,981
|
48,794
|
|||
Total liabilities(a)
|
492,647
|
511,329
|
|||
GECC preferred stock (50,000 shares outstanding at both June 30, 2015 and December 31, 2014)
|
-
|
-
|
|||
Common stock (10,096,429,000 and 10,057,380,000 shares outstanding
|
|||||
at both June 30, 2015 and December 31, 2014, respectively)
|
702
|
702
|
|||
Accumulated other comprehensive income (loss) – net attributable to GE(b)
|
|||||
Investment securities
|
564
|
1,013
|
|||
Currency translation adjustments
|
(5,914)
|
(2,427)
|
|||
Cash flow hedges
|
(140)
|
(180)
|
|||
Benefit plans
|
(12,716)
|
(16,578)
|
|||
Other capital
|
32,803
|
32,889
|
|||
Retained earnings
|
135,755
|
155,333
|
|||
Less common stock held in treasury
|
(41,551)
|
(42,593)
|
|||
Total GE shareowners' equity
|
109,503
|
128,159
|
|||
Noncontrolling interests(c) (Note 11)
|
8,776
|
8,674
|
|||
Total equity
|
118,279
|
136,833
|
|||
Total liabilities and equity
|
$
|
610,926
|
$
|
648,162
|
|
(b) | The sum of accumulated other comprehensive income (loss) (AOCI) attributable to the Company was $(18,206) million and $(18,172) million at June 30, 2015 and December 31, 2014, respectively. |
(c) | Included AOCI attributable to noncontrolling interests of $(230) million and $(194) million at June 30, 2015 and December 31, 2014, respectively. |
STATEMENT OF FINANCIAL POSITION (CONTINUED)
|
|||||||||||
GE(a)
|
Financial Services (GECC)
|
||||||||||
(In millions, except share amounts)
|
June 30, 2015
|
December 31, 2014
|
June 30, 2015
|
December 31, 2014
|
|||||||
(Unaudited)
|
(Unaudited)
|
||||||||||
Assets
|
|||||||||||
Cash and equivalents
|
$
|
17,022
|
$
|
15,916
|
$
|
74,644
|
$
|
69,011
|
|||
Investment securities (Note 3)
|
86
|
84
|
39,355
|
38,320
|
|||||||
Current receivables
|
11,387
|
11,513
|
-
|
-
|
|||||||
Inventories (Note 4)
|
18,657
|
17,639
|
47
|
50
|
|||||||
Financing receivables – net (Note 5 and 18)
|
-
|
-
|
81,083
|
122,457
|
|||||||
Other GECC receivables
|
-
|
-
|
13,481
|
14,508
|
|||||||
Property, plant and equipment – net (Note 6)
|
16,648
|
17,207
|
34,830
|
31,519
|
|||||||
Investment in GECC
|
62,100
|
82,549
|
-
|
-
|
|||||||
Goodwill (Note 7)
|
50,490
|
51,527
|
11,694
|
11,456
|
|||||||
Other intangible assets – net (Note 7)
|
12,544
|
12,984
|
1,128
|
875
|
|||||||
All other assets
|
26,164
|
24,680
|
18,863
|
23,198
|
|||||||
Financing receivables held for sale (Note 2)
|
-
|
-
|
27,982
|
778
|
|||||||
Assets of businesses held for sale (Note 2)
|
3,010
|
2,805
|
5,346
|
3,474
|
|||||||
Assets of discontinued operations (Note 2)
|
9
|
10
|
154,867
|
186,924
|
|||||||
Total assets
|
$
|
218,117
|
$
|
236,914
|
$
|
463,320
|
$
|
502,570
|
|||
Liabilities and equity
|
|||||||||||
Short-term borrowings (Note 8)
|
$
|
4,687
|
$
|
3,872
|
$
|
64,138
|
$
|
67,705
|
|||
Accounts payable, principally trade accounts
|
15,414
|
16,511
|
2,301
|
2,411
|
|||||||
Progress collections and price adjustments accrued
|
11,442
|
12,550
|
-
|
-
|
|||||||
Dividends payable
|
2,322
|
2,317
|
-
|
-
|
|||||||
Other GE current liabilities
|
12,500
|
12,681
|
-
|
-
|
|||||||
Non-recourse borrowings of consolidated securitization entities (Note 8)
|
-
|
-
|
16,991
|
19,369
|
|||||||
Bank deposits (Note 8)
|
-
|
-
|
45,799
|
43,841
|
|||||||
Long-term borrowings (Note 8)
|
15,930
|
12,468
|
169,461
|
186,759
|
|||||||
Investment contracts, insurance liabilities and insurance annuity benefits
|
-
|
-
|
27,389
|
28,027
|
|||||||
All other liabilities
|
50,263
|
54,662
|
11,309
|
9,549
|
|||||||
Deferred income taxes
|
(6,519)
|
(8,772)
|
6,586
|
3,420
|
|||||||
Liabilities of businesses held for sale (Note 2)
|
1,706
|
1,504
|
358
|
2,434
|
|||||||
Liabilities of discontinued operations (Note 2)
|
125
|
137
|
48,856
|
48,657
|
|||||||
Total liabilities
|
107,870
|
107,930
|
393,188
|
412,172
|
|||||||
GECC preferred stock (50,000 shares outstanding
|
-
|
-
|
-
|
-
|
|||||||
at both June 30, 2015 and December 31, 2014)
|
|||||||||||
Common stock (10,096,429,000 and 10,057,380,000 shares outstanding
|
|||||||||||
at both June 30, 2015 and December 31, 2014, respectively)
|
702
|
702
|
-
|
-
|
|||||||
Accumulated other comprehensive income (loss) - net attributable to GE
|
|||||||||||
Investment securities
|
564
|
1,013
|
558
|
1,010
|
|||||||
Currency translation adjustments
|
(5,914)
|
(2,427)
|
(2,146)
|
(838)
|
|||||||
Cash flow hedges
|
(140)
|
(180)
|
(156)
|
(172)
|
|||||||
Benefit plans
|
(12,716)
|
(16,578)
|
(574)
|
(577)
|
|||||||
Other capital
|
32,803
|
32,889
|
33,014
|
32,999
|
|||||||
Retained earnings
|
135,755
|
155,333
|
36,353
|
55,077
|
|||||||
Less common stock held in treasury
|
(41,551)
|
(42,593)
|
-
|
-
|
|||||||
Total GE shareowners' equity
|
109,503
|
128,159
|
67,049
|
87,499
|
|||||||
Noncontrolling interests (Note 11)
|
744
|
825
|
3,083
|
2,899
|
|||||||
Total equity
|
110,247
|
128,984
|
70,132
|
90,398
|
|||||||
Total liabilities and equity
|
$
|
218,117
|
$
|
236,914
|
$
|
463,320
|
$
|
502,570
|
|||
(a) | Represents the adding together of all affiliated companies except General Electric Capital Corporation (GECC or Financial Services), which is presented on a one-line basis. See Note 1. |
STATEMENT OF CASH FLOWS
|
|||||
(UNAUDITED)
|
|||||
Six months ended June 30
|
|||||
General Electric Company
|
|||||
and consolidated affiliates
|
|||||
(In millions)
|
2015
|
2014
|
|||
Cash flows – operating activities
|
|||||
Net earnings (loss)
|
$
|
(14,743)
|
$
|
6,497
|
|
Less net earnings (loss) attributable to noncontrolling interests
|
190
|
(47)
|
|||
Net earnings (loss) attributable to the Company
|
(14,933)
|
6,544
|
|||
(Earnings) loss from discontinued operations
|
9,989
|
(1,359)
|
|||
Adjustments to reconcile net earnings (loss) attributable to the
|
|||||
Company to cash provided from operating activities
|
|||||
Depreciation and amortization of property,
|
|||||
plant and equipment
|
2,325
|
2,395
|
|||
(Earnings) loss from continuing operations retained by GECC
|
-
|
-
|
|||
Deferred income taxes
|
2,073
|
(2,201)
|
|||
Decrease (increase) in GE current receivables
|
1,603
|
24
|
|||
Decrease (increase) in inventories
|
(1,149)
|
(2,328)
|
|||
Increase (decrease) in accounts payable
|
830
|
1,467
|
|||
Increase (decrease) in GE progress collections
|
(1,076)
|
(520)
|
|||
Provision for losses on GECC financing receivables
|
3,898
|
1,835
|
|||
All other operating activities
|
2,870
|
445
|
|||
Cash from (used for) operating activities – continuing operations
|
6,430
|
6,302
|
|||
Cash from (used for) operating activities – discontinued operations
|
5,959
|
3,908
|
|||
Cash from (used for) operating activities
|
12,389
|
10,210
|
|||
Cash flows – investing activities
|
|||||
Additions to property, plant and equipment
|
(3,289)
|
(3,693)
|
|||
Dispositions of property, plant and equipment
|
1,252
|
1,486
|
|||
Net decrease (increase) in GECC financing receivables
|
1,775
|
261
|
|||
Proceeds from sale of discontinued operations
|
15,580
|
232
|
|||
Proceeds from principal business dispositions
|
964
|
549
|
|||
Net cash from (payments for) principal businesses purchased
|
(1,723)
|
(2,066)
|
|||
All other investing activities
|
5,225
|
4,748
|
|||
Cash from (used for) investing activities – continuing operations
|
19,784
|
1,517
|
|||
Cash from (used for) investing activities – discontinued operations
|
(3,238)
|
(1,635)
|
|||
Cash from (used for) investing activities
|
16,546
|
(118)
|
|||
Cash flows – financing activities
|
|||||
Net increase (decrease) in borrowings (maturities of
|
|||||
90 days or less)
|
(1,995)
|
(3,921)
|
|||
Net increase (decrease) in bank deposits
|
2,506
|
4,513
|
|||
Newly issued debt (maturities longer than 90 days)
|
16,294
|
16,925
|
|||
Repayments and other debt reductions (maturities longer than 90 days)
|
(29,540)
|
(24,540)
|
|||
Net dispositions (purchases) of GE shares for treasury
|
499
|
(1,381)
|
|||
Dividends paid to shareowners
|
(4,634)
|
(4,432)
|
|||
All other financing activities
|
(155)
|
(78)
|
|||
Cash from (used for) financing activities – continuing operations
|
(17,025)
|
(12,914)
|
|||
Cash from (used for) financing activities – discontinued operations
|
(1,687)
|
548
|
|||
Cash from (used for) financing activities
|
(18,712)
|
(12,366)
|
|||
Effect of currency exchange rate changes on cash and equivalents
|
(2,887)
|
196
|
|||
Increase (decrease) in cash and equivalents
|
7,336
|
(2,078)
|
|||
Cash and equivalents at beginning of year
|
91,017
|
88,787
|
|||
Cash and equivalents at June 30
|
98,353
|
86,709
|
|||
Less cash and equivalents of discontinued operations at June 30
|
6,448
|
4,861
|
|||
Cash and equivalents of continuing operations at June 30
|
$
|
91,905
|
$
|
81,848
|
|
STATEMENT OF CASH FLOWS (CONTINUED)
|
|||||||||||
(UNAUDITED)
|
|||||||||||
Six months ended June 30
|
|||||||||||
GE(a)
|
Financial Services (GECC)
|
||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Cash flows – operating activities
|
|||||||||||
Net earnings (loss)
|
$
|
(14,927)
|
$
|
6,476
|
$
|
(17,929)
|
$
|
3,794
|
|||
Less net earnings (loss) attributable to noncontrolling interests
|
6
|
(68)
|
184
|
21
|
|||||||
Net earnings (loss) attributable to the Company
|
(14,933)
|
6,544
|
(18,113)
|
3,773
|
|||||||
(Earnings) loss from discontinued operations
|
9,989
|
(1,359)
|
9,985
|
(1,364)
|
|||||||
Adjustments to reconcile net earnings (loss) attributable to the
|
|||||||||||
Company to cash provided from operating activities
|
|||||||||||
Depreciation and amortization of property,
|
|||||||||||
plant and equipment
|
1,157
|
1,291
|
1,178
|
1,104
|
|||||||
(Earnings) loss from continuing operations retained by GECC(b)
|
8,578
|
(993)
|
-
|
-
|
|||||||
Deferred income taxes
|
(102)
|
(547)
|
2,175
|
(1,654)
|
|||||||
Decrease (increase) in GE current receivables
|
(44)
|
(310)
|
-
|
-
|
|||||||
Decrease (increase) in inventories
|
(1,135)
|
(2,327)
|
3
|
14
|
|||||||
Increase (decrease) in accounts payable
|
219
|
977
|
401
|
917
|
|||||||
Increase (decrease) in GE progress collections
|
(1,089)
|
(533)
|
-
|
-
|
|||||||
Provision for losses on GECC financing receivables
|
-
|
-
|
3,898
|
1,835
|
|||||||
All other operating activities
|
1,310
|
628
|
1,848
|
(281)
|
|||||||
Cash from (used for) operating activities – continuing operations
|
3,950
|
3,371
|
1,375
|
4,344
|
|||||||
Cash from (used for) operating activities – discontinued operations
|
(10)
|
(1)
|
5,969
|
3,909
|
|||||||
Cash from (used for) operating activities
|
3,940
|
3,370
|
7,344
|
8,253
|
|||||||
Cash flows – investing activities
|
|||||||||||
Additions to property, plant and equipment
|
(1,889)
|
(2,022)
|
(1,746)
|
(1,837)
|
|||||||
Dispositions of property, plant and equipment
|
376
|
234
|
1,060
|
1,274
|
|||||||
Net decrease (increase) in GECC financing receivables
|
-
|
-
|
3,165
|
757
|
|||||||
Proceeds from sale of discontinued operations
|
-
|
-
|
15,580
|
232
|
|||||||
Proceeds from principal business dispositions
|
222
|
521
|
742
|
-
|
|||||||
Net cash from (payments for) principal businesses purchased
|
(46)
|
(2,066)
|
(1,677)
|
-
|
|||||||
All other investing activities
|
(783)
|
(239)
|
6,628
|
5,749
|
|||||||
Cash from (used for) investing activities – continuing operations
|
(2,120)
|
(3,572)
|
23,752
|
6,175
|
|||||||
Cash from (used for) investing activities – discontinued operations
|
10
|
1
|
(3,248)
|
(1,636)
|
|||||||
Cash from (used for) investing activities
|
(2,110)
|
(3,571)
|
20,504
|
4,539
|
|||||||
Cash flows – financing activities
|
|||||||||||
Net increase (decrease) in borrowings (maturities of
|
|||||||||||
90 days or less)
|
248
|
(432)
|
(2,536)
|
(4,572)
|
|||||||
Net increase (decrease) in bank deposits
|
-
|
-
|
2,506
|
4,513
|
|||||||
Newly issued debt (maturities longer than 90 days)
|
3,654
|
3,043
|
12,640
|
13,882
|
|||||||
Repayments and other debt reductions (maturities longer than 90 days)
|
(128)
|
(135)
|
(29,412)
|
(24,405)
|
|||||||
Net dispositions (purchases) of GE shares for treasury
|
499
|
(1,381)
|
-
|
-
|
|||||||
Dividends paid to shareowners
|
(4,634)
|
(4,432)
|
(611)
|
(1,577)
|
|||||||
All other financing activities
|
190
|
93
|
(184)
|
(10)
|
|||||||
Cash from (used for) financing activities – continuing operations
|
(171)
|
(3,244)
|
(17,597)
|
(12,169)
|
|||||||
Cash from (used for) financing activities – discontinued operations
|
-
|
-
|
(1,687)
|
548
|
|||||||
Cash from (used for) financing activities
|
(171)
|
(3,244)
|
(19,284)
|
(11,621)
|
|||||||
Effect of currency exchange rate changes on cash and equivalents
|
(553)
|
(2)
|
(2,334)
|
198
|
|||||||
Increase (decrease) in cash and equivalents
|
1,106
|
(3,447)
|
6,230
|
1,369
|
|||||||
Cash and equivalents at beginning of year
|
15,916
|
13,682
|
75,101
|
75,105
|
|||||||
Cash and equivalents at June 30
|
17,022
|
10,235
|
81,331
|
76,474
|
|||||||
Less cash and equivalents of discontinued operations at June 30
|
-
|
-
|
6,448
|
4,861
|
|||||||
Cash and equivalents of continuing operations at June 30
|
$
|
17,022
|
$
|
10,235
|
$
|
74,883
|
$
|
71,613
|
|||
(a) | Represents the adding together of all affiliated companies except General Electric Capital Corporation (GECC or Financial Services), which is presented on a one-line basis. |
(b) | Represents GECC earnings/loss from continuing operations attributable to the Company, net of GECC dividends paid to GE. |
FINANCIAL INFORMATION FOR ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE
|
|||||
(In millions)
|
June 30, 2015
|
|
December 31, 2014
|
||
|
|||||
Assets
|
|||||
Cash and equivalents
|
$
|
239
|
|
$
|
676
|
Investment securities
|
-
|
448
|
|||
Current receivables(a)
|
133
|
180
|
|||
Inventories
|
720
|
588
|
|||
Financing receivables – net
|
|
4,635
|
|
|
2,144
|
Property, plant, and equipment – net
|
1,100
|
1,015
|
|||
Goodwill
|
799
|
539
|
|||
Other intangible assets – net
|
251
|
170
|
|||
Other
|
|
486
|
|
|
540
|
Assets of businesses held for sale
|
$
|
8,363
|
|
$
|
6,300
|
|
|
|
|
||
Liabilities
|
|
|
|
||
Short-term borrowings
|
$
|
30
|
441
|
||
Accounts payable(a)
|
703
|
510
|
|||
Other current liabilities
|
349
|
348
|
|||
Bank deposits
|
-
|
1,931
|
|||
Deferred income taxes
|
(136)
|
(33)
|
|||
Other
|
545
|
178
|
|||
Liabilities of businesses held for sale
|
$
|
1,491
|
$
|
3,375
|
|
FINANCING RECEIVABLES HELD FOR SALE
|
||||||
(in millions)
|
June 30, 2015
|
December 31, 2014
|
||||
Commercial
|
||||||
CLL
|
$
|
920
|
$
|
357
|
||
Energy Financial Services
|
6
|
35
|
||||
GE Capital Aviation Services (GECAS)
|
36
|
27
|
||||
Other
|
110
|
-
|
||||
Total Commercial
|
1,072
|
419
|
||||
Consumer
|
26,910
|
(a)
|
359
|
|||
Total financing receivables held for sale
|
$
|
27,982
|
$
|
778
|
||
(a)
|
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Operations
|
|||||||||||
Total revenues and other income (loss)
|
$
|
3,378
|
$
|
3,933
|
$
|
6,780
|
$
|
7,913
|
|||
Earnings (loss) from discontinued operations before income taxes
|
$
|
980
|
$
|
647
|
$
|
(857)
|
$
|
1,395
|
|||
Benefit (provision) for income taxes
|
(325)
|
18
|
450
|
(51)
|
|||||||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
655
|
$
|
665
|
$
|
(407)
|
$
|
1,344
|
|||
Disposal
|
|||||||||||
Gain (loss) on disposal before income taxes
|
$
|
(3,384)
|
$
|
(4)
|
$
|
(7,036)
|
$
|
14
|
|||
Benefit (provision) for income taxes
|
(1,021)
|
-
|
(2,546)
|
1
|
|||||||
Gain (loss) on disposal, net of taxes
|
$
|
(4,405)
|
$
|
(4)
|
$
|
(9,582)
|
$
|
15
|
|||
Earnings (loss) from discontinued operations, net of taxes(a)
|
$
|
(3,750)
|
$
|
661
|
$
|
(9,989)
|
$
|
1,359
|
|||
(In millions)
|
June 30, 2015
|
December 31, 2014
|
|||||||||
Assets
|
|||||||||||
Cash and equivalents
|
$
|
6,448
|
$
|
5,414
|
|||||||
Investment securities
|
9,960
|
10,006
|
|||||||||
Financing receivables – net
|
28,570
|
114,561
|
|||||||||
Other receivables
|
1,718
|
2,192
|
|||||||||
Property, plant and equipment – net
|
17,902
|
18,051
|
|||||||||
Goodwill
|
12,982
|
13,569
|
|||||||||
Other Intangible assets - net
|
165
|
301
|
|||||||||
Deferred income taxes
|
2,148
|
2,920
|
|||||||||
Financing receivables held for sale
|
68,828
|
3,116
|
|||||||||
Valuation allowance on disposal group classified as discontinued operations
|
(7,259)
|
-
|
|||||||||
Other
|
13,414
|
16,804
|
|||||||||
Assets of discontinued operations
|
$
|
154,876
|
$
|
186,934
|
|||||||
Liabilities
|
|||||||||||
Short-term borrowings
|
$
|
994
|
$
|
1,125
|
|||||||
Accounts payable
|
3,969
|
3,770
|
|||||||||
Other GE current liabilities
|
27
|
28
|
|||||||||
Non-recourse borrowings
|
9,168
|
10,569
|
|||||||||
Bank deposits
|
19,572
|
18,998
|
|||||||||
Long-term borrowings
|
612
|
1,182
|
|||||||||
All other liabilities
|
10,290
|
7,720
|
|||||||||
Deferred income taxes
|
4,349
|
5,402
|
|||||||||
Liabilities of discontinued operations
|
$
|
48,981
|
$
|
48,794
|
|||||||
FINANCIAL INFORMATION FOR COMMERCIAL LENDING AND LEASING
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Operations
|
|||||||||||
Total revenues and other income (loss)
|
$
|
3,070
|
$
|
3,308
|
$
|
5,973
|
$
|
6,628
|
|||
Interest
|
$
|
(641)
|
$
|
(774)
|
$
|
(1,343)
|
$
|
(1,562)
|
|||
Operating and administrative
|
(1,028)
|
(955)
|
(2,005)
|
(1,791)
|
|||||||
Depreciation and amortization
|
(421)
|
(960)
|
(1,768)
|
(1,935)
|
|||||||
Provision for losses on financing receivables
|
(13)
|
(110)
|
(1,757)
|
(207)
|
|||||||
Earnings (loss) from discontinued operations, before income taxes
|
967
|
509
|
(900)
|
1,133
|
|||||||
Benefit (provision) for income taxes
|
(309)
|
(73)
|
315
|
(218)
|
|||||||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
658
|
$
|
436
|
$
|
(585)
|
$
|
915
|
|||
Disposal
|
|||||||||||
Gain (loss) on disposal before income taxes
|
$
|
(3,380)
|
$
|
-
|
$
|
(5,225)
|
$
|
-
|
|||
Benefit (provision) for income taxes
|
(949)
|
-
|
(1,927)
|
-
|
|||||||
Gain (loss) on disposal, net of taxes
|
$
|
(4,329)
|
$
|
-
|
$
|
(7,152)
|
$
|
-
|
|||
Earnings (loss) from discontinued operations, net of taxes(a)
|
$
|
(3,671)
|
$
|
436
|
$
|
(7,737)
|
$
|
915
|
|||
FINANCIAL INFORMATION FOR REAL ESTATE
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Operations
|
|||||||||||
Total revenues and other income (loss)
|
$
|
313
|
$
|
664
|
$
|
812
|
$
|
1,295
|
|||
Interest
|
$
|
(137)
|
$
|
(274)
|
$
|
(373)
|
$
|
(547)
|
|||
Operating and administrative
|
(142)
|
(201)
|
(307)
|
(351)
|
|||||||
Depreciation and amortization
|
(2)
|
(85)
|
(62)
|
(170)
|
|||||||
Provision for losses on financing receivables
|
-
|
90
|
4
|
104
|
|||||||
Earnings (loss) from discontinued operations, before income taxes
|
32
|
194
|
74
|
331
|
|||||||
Benefit (provision) for income taxes
|
13
|
93
|
43
|
196
|
|||||||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
45
|
$
|
287
|
$
|
117
|
$
|
527
|
|||
Disposal
|
|||||||||||
Gain (loss) on disposal before income taxes
|
$
|
(3)
|
$
|
-
|
$
|
(1,811)
|
$
|
-
|
|||
Benefit (provision) for income taxes
|
(72)
|
-
|
(619)
|
-
|
|||||||
Gain (loss) on disposal, net of taxes
|
$
|
(75)
|
$
|
-
|
$
|
(2,430)
|
$
|
-
|
|||
Earnings (loss) from discontinued operations, net of taxes(a)
|
$
|
(30)
|
$
|
287
|
$
|
(2,313)
|
$
|
527
|
|||
ROLLFORWARD OF THE RESERVE
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Balance, beginning of period
|
$
|
814
|
$
|
550
|
$
|
809
|
$
|
800
|
|||
Provision
|
11
|
102
|
18
|
102
|
|||||||
Claim resolutions / rescissions
|
-
|
(103)
|
(2)
|
(353)
|
|||||||
Balance, end of period
|
$
|
825
|
$
|
549
|
$
|
825
|
$
|
549
|
|||
FINANCIAL INFORMATION FOR WMC
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Total revenues and other income (loss)
|
$
|
(5)
|
$
|
(39)
|
$
|
(5)
|
$
|
(35)
|
|||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(10)
|
$
|
(30)
|
$
|
(16)
|
$
|
(32)
|
June 30, 2015
|
December 31, 2014
|
||||||||||||||||||||||
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
|
$
|
5
|
$
|
-
|
$
|
-
|
$
|
5
|
$
|
12
|
$
|
-
|
$
|
-
|
$
|
12
|
|||||||
Corporate – non-U.S.
|
1
|
-
|
-
|
1
|
1
|
-
|
-
|
1
|
|||||||||||||||
Equity
|
|||||||||||||||||||||||
Available-for-sale
|
75
|
28
|
(23)
|
80
|
69
|
4
|
(2)
|
71
|
|||||||||||||||
Trading
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
81
|
28
|
(23)
|
86
|
82
|
4
|
(2)
|
84
|
||||||||||||||||
GECC
|
|||||||||||||||||||||||
Debt
|
|||||||||||||||||||||||
U.S. corporate
|
19,970
|
3,013
|
(147)
|
22,836
|
19,810
|
3,962
|
(69)
|
23,703
|
|||||||||||||||
State and municipal
|
4,015
|
398
|
(90)
|
4,323
|
4,173
|
555
|
(53)
|
4,675
|
|||||||||||||||
Residential mortgage-backed(a)
|
1,077
|
88
|
(7)
|
1,158
|
1,544
|
153
|
(5)
|
1,692
|
|||||||||||||||
Commercial mortgage-backed
|
2,344
|
133
|
(16)
|
2,461
|
2,903
|
170
|
(10)
|
3,063
|
|||||||||||||||
Asset-backed
|
112
|
1
|
(15)
|
98
|
304
|
8
|
(17)
|
295
|
|||||||||||||||
Corporate – non-U.S.
|
812
|
101
|
-
|
913
|
908
|
109
|
(1)
|
1,016
|
|||||||||||||||
Government – non-U.S.
|
1,688
|
154
|
(4)
|
1,838
|
1,560
|
152
|
(2)
|
1,710
|
|||||||||||||||
U.S. government and federal
|
|||||||||||||||||||||||
agency
|
5,504
|
80
|
-
|
5,584
|
1,957
|
56
|
-
|
2,013
|
|||||||||||||||
Equity
|
|||||||||||||||||||||||
Available-for-sale
|
105
|
21
|
(1)
|
125
|
109
|
24
|
(1)
|
132
|
|||||||||||||||
Trading
|
19
|
-
|
-
|
19
|
21
|
-
|
-
|
21
|
|||||||||||||||
35,646
|
3,989
|
(280)
|
39,355
|
33,289
|
5,189
|
(158)
|
38,320
|
||||||||||||||||
Eliminations
|
(3)
|
-
|
-
|
(3)
|
(4)
|
-
|
-
|
(4)
|
|||||||||||||||
Total
|
$
|
35,724
|
$
|
4,017
|
$
|
(303)
|
$
|
39,438
|
$
|
33,367
|
$
|
5,193
|
$
|
(160)
|
$
|
38,400
|
|||||||
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, 2015
|
||||||||||||
Debt
|
||||||||||||
U.S. corporate
|
$
|
2,267
|
$
|
(113)
|
$
|
246
|
$
|
(34)
|
||||
State and municipal
|
735
|
(32)
|
162
|
(58)
|
||||||||
Residential mortgage-backed
|
197
|
(3)
|
79
|
(4)
|
||||||||
Commercial mortgage-backed
|
434
|
(11)
|
26
|
(5)
|
||||||||
Asset-backed
|
9
|
-
|
43
|
(15)
|
||||||||
Corporate – non-U.S.
|
36
|
-
|
3
|
-
|
||||||||
Government – non-U.S.
|
932
|
(4)
|
-
|
-
|
||||||||
U.S. government and federal agency
|
278
|
-
|
1
|
-
|
||||||||
Equity
|
41
|
(24)
|
-
|
-
|
||||||||
Total
|
$
|
4,929
|
$
|
(187)
|
$
|
560
|
$
|
(116)
|
(c)
|
|||
December 31, 2014
|
||||||||||||
Debt
|
||||||||||||
U.S. corporate
|
$
|
554
|
$
|
(16)
|
$
|
836
|
$
|
(53)
|
||||
State and municipal
|
67
|
(1)
|
308
|
(52)
|
||||||||
Residential mortgage-backed
|
30
|
-
|
146
|
(5)
|
||||||||
Commercial mortgage-backed
|
165
|
(1)
|
204
|
(9)
|
||||||||
Asset-backed
|
9
|
-
|
42
|
(17)
|
||||||||
Corporate – non-U.S.
|
42
|
(1)
|
3
|
-
|
||||||||
Government – non-U.S.
|
677
|
(2)
|
14
|
-
|
||||||||
U.S. government and federal agency
|
705
|
-
|
1
|
-
|
||||||||
Equity
|
10
|
(3)
|
-
|
-
|
||||||||
Total
|
$
|
2,259
|
$
|
(24)
|
$
|
1,554
|
$
|
(136)
|
||||
(b) | Included gross unrealized losses related to securities that had other-than-temporary impairments previously recognized of $19 million at June 30, 2015. |
(c) | Includes debt securities held to support obligations to holders of GICs substantially all of which are considered to be investment-grade by the major rating agencies at June 30, 2015. |
PRE-TAX, OTHER-THAN-TEMPORARY IMPAIRMENTS ON INVESTMENT SECURITIES
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Total pre-tax, OTTI recognized
|
$
|
29
|
$
|
7
|
$
|
32
|
$
|
16
|
|||
Pre-tax, OTTI recognized in AOCI
|
-
|
-
|
-
|
(4)
|
|||||||
Pre-tax, OTTI recognized in earnings(a)
|
$
|
29
|
$
|
7
|
$
|
32
|
$
|
12
|
|||
GROSS REALIZED GAINS AND LOSSES ON AVAILABLE-FOR-SALE INVESTMENT SECURITIES
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
|||||||
GE
|
|||||||||||
Gains
|
$
|
1
|
$
|
2
|
$
|
1
|
$
|
2
|
|||
Losses, including impairments
|
(14)
|
-
|
(14)
|
-
|
|||||||
Net
|
(13)
|
2
|
(13)
|
2
|
|||||||
GECC
|
|||||||||||
Gains
|
6
|
28
|
101
|
36
|
|||||||
Losses, including impairments
|
(21)
|
(7)
|
(35)
|
(13)
|
|||||||
Net
|
(15)
|
21
|
66
|
23
|
|||||||
Total
|
$
|
(28)
|
$
|
23
|
$
|
53
|
$
|
25
|
|||
(in millions)
|
June 30, 2015
|
December 31, 2014
|
|||
GE
|
|||||
Raw materials and work in process
|
$
|
10,488
|
$
|
9,820
|
|
Finished goods
|
7,557
|
7,126
|
|||
Unbilled shipments
|
617
|
755
|
|||
18,662
|
17,701
|
||||
Less revaluation to LIFO
|
(5)
|
(62)
|
|||
Total GE
|
18,657
|
17,639
|
|||
GECC
|
|||||
Finished goods
|
47
|
50
|
|||
Total consolidated
|
$
|
18,704
|
$
|
17,689
|
FINANCING RECEIVABLES, NET
|
|||||
(in millions)
|
June 30, 2015
|
December 31, 2014
|
|||
Loans, net of deferred income
|
$
|
79,169
|
$
|
120,007
|
|
Investment in financing leases, net of deferred income
|
5,307
|
6,554
|
|||
84,476
|
126,561
|
||||
Allowance for losses
|
(3,393)
|
(4,104)
|
|||
Financing receivables – net
|
$
|
81,083
|
$
|
122,457
|
|
FINANCING RECEIVABLES
|
||||||
(in millions)
|
June 30, 2015
|
December 31, 2014
|
||||
Commercial
|
||||||
CLL
|
$
|
12,228
|
(a)
|
$
|
14,418
|
|
Energy Financial Services
|
2,787
|
2,580
|
||||
GE Capital Aviation Services (GECAS)
|
7,528
|
8,263
|
||||
Other
|
502
|
480
|
||||
Total Commercial
|
23,045
|
25,741
|
||||
Consumer
|
61,431
|
(b)
|
100,820
|
|||
Total financing receivables
|
84,476
|
126,561
|
||||
Allowance for losses
|
(3,393)
|
(4,104)
|
||||
Total financing receivables – net
|
$
|
81,083
|
$
|
122,457
|
||
(a)
|
(b)
|
Includes Synchrony Financial, our U.S. consumer business.
|
ALLOWANCE FOR LOSSES
|
||||||||||||||||||
Provision
|
||||||||||||||||||
Balance at
|
charged to
|
Gross
|
Balance at
|
|||||||||||||||
(In millions)
|
January 1
|
operations(a)
|
Other
|
(b)
|
write-offs
|
(a)(c)
|
Recoveries
|
(c)
|
June 30
|
|||||||||
2015
|
||||||||||||||||||
Commercial
|
||||||||||||||||||
CLL
|
$
|
21
|
$
|
8
|
$
|
9
|
$
|
(11)
|
$
|
4
|
$
|
31
|
||||||
Energy Financial Services
|
26
|
17
|
-
|
(20)
|
-
|
23
|
||||||||||||
GECAS
|
46
|
(11)
|
-
|
-
|
-
|
35
|
||||||||||||
Other
|
-
|
15
|
-
|
(13)
|
-
|
2
|
||||||||||||
Total Commercial
|
93
|
29
|
9
|
(44)
|
4
|
91
|
||||||||||||
Consumer
|
4,011
|
3,869
|
(257)
|
(4,785)
|
464
|
3,302
|
||||||||||||
Total
|
$
|
4,104
|
$
|
3,898
|
$
|
(248)
|
$
|
(4,829)
|
$
|
468
|
$
|
3,393
|
||||||
2014
|
||||||||||||||||||
Commercial
|
||||||||||||||||||
CLL
|
$
|
17
|
$
|
7
|
$
|
(1)
|
$
|
(6)
|
$
|
5
|
$
|
22
|
||||||
Energy Financial Services
|
8
|
13
|
-
|
(2)
|
2
|
21
|
||||||||||||
GECAS
|
17
|
11
|
-
|
(7)
|
-
|
21
|
||||||||||||
Other
|
2
|
-
|
(2)
|
-
|
-
|
-
|
||||||||||||
Total Commercial
|
44
|
31
|
(3)
|
(15)
|
7
|
64
|
||||||||||||
Consumer
|
3,981
|
1,804
|
(67)
|
(2,184)
|
567
|
4,101
|
||||||||||||
Total
|
$
|
4,025
|
$
|
1,835
|
$
|
(70)
|
$
|
(2,199)
|
$
|
574
|
$
|
4,165
|
||||||
(a)
|
(b)
|
Other primarily includes the reclassification of financing receivables to assets of businesses held for sale and the effects of currency exchange.
|
(c)
|
Net write-offs (gross write-offs less recoveries) in certain portfolios may exceed the beginning allowance for losses as a result of losses that are incurred subsequent to the beginning of the fiscal year due to information becoming available during the current year, which may identify further deterioration on existing financing receivables.
|
(In millions)
|
June 30, 2015
|
December 31, 2014
|
|||||||||
Original cost
|
$
|
87,209
|
$
|
84,071
|
|||||||
Less accumulated depreciation and amortization
|
(36,170)
|
(35,735)
|
|||||||||
Property, plant and equipment – net
|
$
|
51,039
|
$
|
48,336
|
|||||||
CHANGES IN GOODWILL BALANCES
|
|||||||||||
Dispositions,
|
|||||||||||
currency
|
|||||||||||
Balance at
|
exchange
|
Balance at
|
|||||||||
(In millions)
|
January 1, 2015
|
Acquisitions
|
and other
|
June 30, 2015
|
|||||||
Power & Water
|
$
|
8,754
|
$
|
31
|
$
|
(159)
|
$
|
8,626
|
|||
Oil & Gas
|
10,572
|
-
|
(214)
|
10,358
|
|||||||
Energy Management
|
4,570
|
-
|
(272)
|
4,298
|
|||||||
Aviation
|
8,952
|
-
|
(320)
|
8,632
|
|||||||
Healthcare
|
17,532
|
-
|
(78)
|
17,454
|
|||||||
Transportation
|
887
|
-
|
(17)
|
870
|
|||||||
Appliances & Lighting
|
226
|
-
|
(9)
|
217
|
|||||||
GE Capital
|
11,456
|
733
|
(495)
|
11,694
|
|||||||
Corporate
|
34
|
-
|
1
|
35
|
|||||||
Total
|
$
|
62,983
|
$
|
764
|
$
|
(1,563)
|
$
|
62,184
|
|||
OTHER INTANGIBLE ASSETS - NET
|
|||||
(In millions)
|
June 30, 2015
|
December 31, 2014
|
|||
Intangible assets subject to amortization
|
$
|
13,544
|
$
|
13,725
|
|
Indefinite-lived intangible assets(a)
|
124
|
130
|
|||
Total
|
$
|
13,668
|
$
|
13,855
|
|
(a) | Indefinite-lived intangible assets principally comprise trademarks and in-process research and development. |
INTANGIBLE ASSETS SUBJECT TO AMORTIZATION
|
|||||||||||||||||
June 30, 2015
|
December 31, 2014
|
||||||||||||||||
Gross
|
Gross
|
||||||||||||||||
carrying
|
Accumulated
|
carrying
|
Accumulated
|
||||||||||||||
(in millions)
|
amount
|
amortization
|
Net
|
amount
|
amortization
|
Net
|
|||||||||||
Customer-related
|
$
|
8,166
|
$
|
(2,368)
|
$
|
5,798
|
$
|
8,064
|
$
|
(2,261)
|
$
|
5,803
|
|||||
Patents and technology
|
6,455
|
(3,018)
|
3,437
|
6,694
|
(2,900)
|
3,794
|
|||||||||||
Capitalized software
|
7,381
|
(4,198)
|
3,183
|
7,349
|
(4,178)
|
3,171
|
|||||||||||
Trademarks
|
1,139
|
(280)
|
859
|
1,151
|
(263)
|
888
|
|||||||||||
Lease valuations
|
107
|
(10)
|
97
|
-
|
-
|
-
|
|||||||||||
Present value of future profits(a)
|
632
|
(632)
|
-
|
614
|
(614)
|
-
|
|||||||||||
All other
|
331
|
(161)
|
170
|
203
|
(134)
|
69
|
|||||||||||
Total
|
$
|
24,211
|
$
|
(10,667)
|
$
|
13,544
|
$
|
24,075
|
$
|
(10,350)
|
$
|
13,725
|
|||||
(In millions)
|
June 30, 2015
|
December 31, 2014
|
|||
Short-term borrowings
|
|||||
GE
|
|||||
Commercial paper
|
$
|
1,000
|
$
|
500
|
|
Payable to banks
|
548
|
343
|
|||
Current portion of long-term borrowings
|
2,057
|
2,068
|
|||
Other
|
1,082
|
961
|
|||
Total GE short-term borrowings
|
4,687
|
3,872
|
|||
GECC
|
|||||
Commercial paper(a)
|
|||||
U.S.
|
21,906
|
22,019
|
|||
Non-U.S.
|
3,107
|
2,993
|
|||
Current portion of long-term borrowings(a)(b)(c)
|
36,163
|
36,995
|
|||
GE Interest Plus notes(d)
|
2,499
|
5,467
|
|||
Other(c)
|
463
|
231
|
|||
Total GECC short-term borrowings
|
64,138
|
67,705
|
|||
Eliminations
|
(1,003)
|
(863)
|
|||
Total short-term borrowings
|
$
|
67,822
|
$
|
70,714
|
|
Long-term borrowings
|
|||||
GE
|
|||||
Senior notes
|
$
|
15,473
|
$
|
11,945
|
|
Payable to banks
|
76
|
5
|
|||
Other
|
381
|
518
|
|||
Total GE long-term borrowings
|
15,930
|
12,468
|
|||
GECC
|
|||||
Senior unsecured notes(a)(b)(e)
|
149,278
|
162,194
|
|||
Subordinated notes(a)
|
4,659
|
4,804
|
|||
Subordinated debentures(a)(f)
|
6,774
|
7,085
|
|||
Other(a)(c)(g)
|
8,750
|
12,676
|
|||
Total GECC long-term borrowings
|
169,461
|
186,759
|
|||
Eliminations
|
(40)
|
(45)
|
|||
Total long-term borrowings
|
$
|
185,351
|
$
|
199,182
|
|
Non-recourse borrowings of consolidated securitization entities(h)
|
$
|
16,991
|
$
|
19,369
|
|
Bank deposits(i)
|
$
|
45,799
|
$
|
43,841
|
|
Total borrowings and bank deposits
|
$
|
315,963
|
$
|
333,106
|
|
(b)
|
Included $433 million and $439 million of obligations to holders of GICs at June 30, 2015 and December 31, 2014, respectively. These obligations included conditions under which certain GIC holders could require immediate repayment of their investment should the long-term credit ratings of GECC fall below AA-/Aa3. The remaining outstanding GICs will continue to be subject to their scheduled maturities and individual terms, which may include provisions permitting redemption upon a downgrade of one or more of GECC's ratings, among other things.
|
(c)
|
Included $5,193 million and $4,835 million of funding secured by real estate, aircraft and other collateral at June 30, 2015 and December 31, 2014, respectively, of which $1,234 million and $1,183 million is non-recourse to GECC at June 30, 2015 and December 31, 2014, respectively.
|
(d)
|
Entirely variable denomination floating-rate demand notes.
|
(e)
|
Included $4,593 million related to Synchrony Financial.
|
(f)
|
Subordinated debentures receive rating agency equity credit.
|
(g)
|
Included $5,151 million related to Synchrony Financial.
|
(h)
|
Included $2,899 million and $3,377 million of current portion of long-term borrowings at June 30, 2015 and December 31, 2014, respectively. See Note 16.
|
(i)
|
Included $8,028 million and $8,905 million of deposits in non-U.S. banks at June 30, 2015 and December 31, 2014, respectively, and $15,622 million and $14,500 million of certificates of deposits with maturities greater than one year at June 30, 2015 and December 31, 2014, respectively.
|
EFFECT ON OPERATIONS OF PENSION PLANS
|
|||||||||||
Principal pension plans
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Service cost for benefits earned
|
$
|
367
|
$
|
299
|
$
|
728
|
$
|
617
|
|||
Prior service cost amortization
|
51
|
54
|
103
|
108
|
|||||||
Expected return on plan assets
|
(827)
|
(800)
|
(1,652)
|
(1,601)
|
|||||||
Interest cost on benefit obligations
|
696
|
687
|
1,391
|
1,373
|
|||||||
Net actuarial loss amortization
|
820
|
642
|
1,645
|
1,283
|
|||||||
Curtailment loss
|
-
|
-
|
71
|
(a)
|
-
|
||||||
Pension plans cost
|
$
|
1,107
|
$
|
882
|
$
|
2,286
|
$
|
1,780
|
|||
Other pension plans
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Service cost for benefits earned
|
$
|
95
|
$
|
105
|
$
|
200
|
$
|
219
|
|||
Prior service cost amortization
|
-
|
2
|
-
|
3
|
|||||||
Expected return on plan assets
|
(205)
|
(199)
|
(414)
|
(396)
|
|||||||
Interest cost on benefit obligations
|
130
|
148
|
263
|
294
|
|||||||
Net actuarial loss amortization
|
71
|
50
|
145
|
99
|
|||||||
Pension plans cost
|
$
|
91
|
$
|
106
|
$
|
194
|
$
|
219
|
|||
EFFECT ON OPERATIONS OF PRINCIPAL RETIREE HEALTH AND LIFE INSURANCE PLANS
|
|||||||||||
Principal retiree health
|
|||||||||||
and life insurance plans
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Service cost for benefits earned
|
$
|
51
|
$
|
40
|
$
|
92
|
$
|
84
|
|||
Prior service cost amortization
|
34
|
99
|
67
|
197
|
|||||||
Expected return on plan assets
|
(12)
|
(13)
|
(24)
|
(25)
|
|||||||
Interest cost on benefit obligations
|
100
|
110
|
201
|
220
|
|||||||
Net actuarial loss (gain) amortization
|
2
|
(43)
|
3
|
(86)
|
|||||||
Curtailment gain, net
|
(196)
|
(b)
|
-
|
(192)
|
(a)(b)
|
-
|
|||||
Retiree benefit plans cost
|
$
|
(21)
|
$
|
193
|
$
|
147
|
$
|
390
|
|||
(b)
|
Curtailment gain resulting from a life insurance plan amendment.
|
UNRECOGNIZED TAX BENEFITS
|
|||||
(in millions)
|
June 30, 2015
|
December 31, 2014
|
|||
Unrecognized tax benefits
|
$
|
5,389
|
$
|
5,619
|
|
Portion that, if recognized, would reduce tax expense and effective tax rate(a)
|
3,920
|
4,059
|
|||
Accrued interest on unrecognized tax benefits
|
835
|
807
|
|||
Accrued penalties on unrecognized tax benefits
|
100
|
103
|
|||
Reasonably possible reduction to the balance of unrecognized tax benefits
|
|||||
in succeeding 12 months
|
0-900
|
0-900
|
|||
Portion that, if recognized, would reduce tax expense and effective tax rate(a)
|
0-350
|
0-300
|
|||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Investment securities
|
|||||||||||
Beginning balance
|
$
|
1,245
|
$
|
764
|
$
|
1,013
|
$
|
307
|
|||
Other comprehensive income (loss) (OCI) before reclassifications –
|
|||||||||||
net of deferred taxes of $(365), $211, $(210) and $457
|
(692)
|
302
|
(405)
|
749
|
|||||||
Reclassifications from OCI – net of deferred taxes
|
|||||||||||
of $3, $(11), $(26) and $(4)
|
10
|
(25)
|
(44)
|
(15)
|
|||||||
Other comprehensive income (loss)(a)
|
(682)
|
277
|
(449)
|
734
|
|||||||
Less OCI attributable to noncontrolling interests
|
(1)
|
1
|
-
|
1
|
|||||||
Ending balance
|
$
|
564
|
$
|
1,040
|
$
|
564
|
$
|
1,040
|
|||
Currency translation adjustments (CTA)
|
|||||||||||
Beginning balance
|
$
|
(7,716)
|
$
|
177
|
$
|
(2,427)
|
$
|
126
|
|||
OCI before reclassifications – net of deferred taxes
|
|||||||||||
of $(201), $45, $1,343 and $116
|
1,511
|
(146)
|
(3,828)
|
(99)
|
|||||||
Reclassifications from OCI – net of deferred taxes
|
|||||||||||
of $(150), $0, $(151) and $124
|
304
|
38
|
307
|
40
|
|||||||
Other comprehensive income (loss)(a)
|
1,815
|
(108)
|
(3,521)
|
(59)
|
|||||||
Less OCI attributable to noncontrolling interests
|
13
|
8
|
(34)
|
6
|
|||||||
Ending balance
|
$
|
(5,914)
|
$
|
61
|
$
|
(5,914)
|
$
|
61
|
|||
Cash flow hedges
|
|||||||||||
Beginning balance
|
$
|
(226)
|
$
|
(189)
|
$
|
(180)
|
$
|
(257)
|
|||
OCI before reclassifications – net of deferred taxes
|
|||||||||||
of $42, $(31), $4 and $40
|
433
|
(191)
|
(493)
|
(92)
|
|||||||
Reclassifications from OCI – net of deferred taxes
|
|||||||||||
of $(68), $15, $49 and $9
|
(347)
|
204
|
533
|
173
|
|||||||
Other comprehensive income (loss)(a)
|
86
|
13
|
40
|
81
|
|||||||
Less OCI attributable to noncontrolling interests
|
-
|
-
|
-
|
-
|
|||||||
Ending balance
|
$
|
(140)
|
$
|
(176)
|
$
|
(140)
|
$
|
(176)
|
|||
Benefit plans
|
|||||||||||
Beginning balance
|
$
|
(15,667)
|
$
|
(8,601)
|
$
|
(16,578)
|
$
|
(9,296)
|
|||
Prior service credit (costs) - net of deferred taxes
|
|||||||||||
of $1,194, $0, $1,194 and $0
|
2,090
|
-
|
2,090
|
-
|
|||||||
Net actuarial gain (loss) – net of deferred taxes
|
|||||||||||
of $204, $(10), $269 and $32
|
349
|
(6)
|
559
|
166
|
|||||||
Net curtailment/settlement - net of deferred taxes
|
|||||||||||
of $(71), $0, $(44) and $0
|
(125)
|
-
|
(77)
|
-
|
|||||||
Prior service cost amortization – net of deferred taxes
|
|||||||||||
of $38, $66, $75 and $130
|
51
|
95
|
101
|
188
|
|||||||
Net actuarial loss amortization – net of deferred taxes
|
|||||||||||
of $301, $211, $605 and $424
|
586
|
429
|
1,187
|
859
|
|||||||
Other comprehensive income (loss)(a)
|
2,951
|
518
|
3,860
|
1,213
|
|||||||
Less OCI attributable to noncontrolling interests
|
-
|
-
|
(2)
|
-
|
|||||||
Ending balance
|
$
|
(12,716)
|
$
|
(8,083)
|
$
|
(12,716)
|
$
|
(8,083)
|
|||
Accumulated other comprehensive income (loss) at June 30
|
$
|
(18,206)
|
$
|
(7,158)
|
$
|
(18,206)
|
$
|
(7,158)
|
|||
RECLASSIFICATION OUT OF AOCI
|
|||||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
Statement of Earnings Caption
|
||||||||
Available-for-sale securities
|
|||||||||||||
Realized gains (losses) on
|
|||||||||||||
sale/impairment of securities
|
$
|
(13)
|
$
|
36
|
$
|
70
|
$
|
19
|
Other income (a)
|
||||
3
|
(11)
|
(26)
|
(4)
|
Benefit (provision) for income taxes (b)
|
|||||||||
$
|
(10)
|
$
|
25
|
$
|
44
|
$
|
15
|
Net of tax
|
|||||
Currency translation adjustments
|
|||||||||||||
Gains (losses) on dispositions
|
$
|
(154)
|
$
|
(38)
|
$
|
(156)
|
$
|
(164)
|
Costs and expenses (c)
|
||||
(150)
|
-
|
(151)
|
124
|
Benefit (provision) for income taxes (d)
|
|||||||||
$
|
(304)
|
$
|
(38)
|
$
|
(307)
|
$
|
(40)
|
Net of tax
|
|||||
Cash flow hedges
|
|||||||||||||
Gains (losses) on interest rate
|
|||||||||||||
derivatives
|
$
|
(22)
|
$
|
(60)
|
$
|
(61)
|
$
|
(129)
|
Interest and other financial charges
|
||||
Foreign exchange contracts
|
430
|
(147)
|
(528)
|
(19)
|
(e)
|
||||||||
Other
|
7
|
(12)
|
7
|
(34)
|
(f)
|
||||||||
415
|
(219)
|
(582)
|
(182)
|
Total before tax
|
|||||||||
(68)
|
15
|
49
|
9
|
Benefit (provision) for income taxes
|
|||||||||
$
|
347
|
$
|
(204)
|
$
|
(533)
|
$
|
(173)
|
Net of tax
|
|||||
Benefit plan items
|
|||||||||||||
Curtailment gain (loss)
|
$
|
196
|
$
|
-
|
$
|
121
|
$
|
-
|
(g)
|
||||
Amortization of prior service costs
|
(89)
|
(161)
|
(176)
|
(318)
|
(g)
|
||||||||
Amortization of actuarial gains (losses)
|
(887)
|
(640)
|
(1,792)
|
(1,283)
|
(g)
|
||||||||
(780)
|
(801)
|
(1,847)
|
(1,601)
|
Total before tax
|
|||||||||
268
|
277
|
636
|
554
|
Benefit (provision) for income taxes
|
|||||||||
$
|
(512)
|
$
|
(524)
|
$
|
(1,211)
|
$
|
(1,047)
|
Net of tax
|
|||||
Total reclassification adjustments
|
$
|
(479)
|
$
|
(741)
|
$
|
(2,007)
|
$
|
(1,245)
|
Net of tax
|
||||
(a)
|
(b)
|
Included $(7) million and $(4) million for the three months ended June 30, 2015 and 2014, and $(6) million and $3 million for six months ended June 30, 2015 and 2014, respectively in earnings (loss) from discontinued operations, net of taxes.
|
(c)
|
Included $4 million and $(4) million for the three months ended June 30, 2015 and 2014, and $4 million and $(129) million for six months ended June 30, 2015 and 2014, respectively in earnings (loss) from discontinued operations, net of taxes.
|
(d)
|
Included $(137) million and none for the three months ended June 30, 2015 and 2014, and $(137) million and $124 million for six months ended June 30, 2015 and 2014, respectively in earnings (loss) from discontinued operations, net of taxes
|
(e)
|
Included $404 million and $(145) million in GECC revenues from services and $26 million and $(2) million in interest and other financial charges in the three months ended June 30, 2015 and 2014, respectively and $(540) million and $(11) million in GECC revenues from services and $12 million and $(8) million in interest and other financial charges in the six months ended June 30, 2015 and 2014, 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 9 for further information.
|
(In millions)
|
June 30, 2015
|
December 31, 2014
|
|||
|
|
|
|
|
|
GECC preferred stock
|
$
|
4,950
|
|
$
|
4,950
|
Synchrony Financial
|
2,700
|
2,531
|
|||
Other noncontrolling interests in consolidated affiliates(a)
|
|
1,126
|
|
|
1,193
|
Total
|
$
|
8,776
|
|
$
|
8,674
|
(a) |
Consisted of a number of individually insignificant noncontrolling interests in partnerships and consolidated affiliates.
|
CHANGES TO NONCONTROLLING INTERESTS
|
||||||||||||
Three months ended June 30
|
Six months ended June 30
|
|||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
||||||||
Beginning balance
|
$
|
8,738
|
$
|
6,183
|
$
|
8,674
|
$
|
6,217
|
||||
Net earnings (loss)
|
223
|
52
|
192
|
19
|
||||||||
GECC preferred stock dividend
|
(161)
|
(161)
|
(161)
|
(161)
|
||||||||
Dividends
|
(16)
|
(25)
|
(18)
|
(35)
|
||||||||
Dispositions
|
(6)
|
(92)
|
(6)
|
(92)
|
||||||||
Other (including AOCI)(a)
|
(2)
|
97
|
95
|
106
|
||||||||
Ending balance
|
$
|
8,776
|
$
|
6,054
|
$
|
8,776
|
$
|
6,054
|
||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Interest on loans
|
$
|
2,955
|
$
|
3,038
|
$
|
5,892
|
$
|
6,066
|
|||
Equipment leased to others
|
1,194
|
1,149
|
2,340
|
2,289
|
|||||||
Fees
|
795
|
794
|
1,587
|
1,614
|
|||||||
Investment income(a)
|
431
|
518
|
975
|
1,011
|
|||||||
Associated companies
|
381
|
249
|
735
|
607
|
|||||||
Premiums earned by insurance activities
|
380
|
380
|
709
|
733
|
|||||||
Financing leases
|
96
|
93
|
191
|
231
|
|||||||
Other items(b)
|
(36)
|
20
|
(1,331)
|
227
|
|||||||
6,196
|
6,241
|
11,098
|
12,778
|
||||||||
Eliminations
|
(279)
|
(417)
|
(709)
|
(773)
|
|||||||
Total
|
$
|
5,917
|
$
|
5,824
|
$
|
10,389
|
$
|
12,005
|
|||
(b) | During the six months ended June 30, 2015, other items primarily included impairments related to equity method investments ($1,392 million) in connection with the GE Capital Exit Plan. |
Three months ended June 30
|
|||||||||||
2015
|
2014
|
||||||||||
(In millions; per-share amounts in dollars)
|
Diluted
|
Basic
|
Diluted
|
Basic
|
|||||||
Amounts attributable to the Company:
|
|||||||||||
Consolidated
|
|||||||||||
Earnings (loss) from continuing operations attributable to
|
|||||||||||
common shareowners for per-share calculation(a)(b)
|
$
|
2,388
|
$
|
2,387
|
$
|
2,881
|
$
|
2,881
|
|||
Earnings (loss) from discontinued operations
|
|||||||||||
for per-share calculation(a)(b)
|
(3,745)
|
(3,745)
|
661
|
661
|
|||||||
Net earnings (loss) attributable to GE common
|
|||||||||||
shareowners for per-share calculation(a)(b)
|
$
|
(1,357)
|
$
|
(1,357)
|
$
|
3,541
|
$
|
3,541
|
|||
Average equivalent shares
|
|||||||||||
Shares of GE common stock outstanding
|
10,087
|
10,087
|
10,031
|
10,031
|
|||||||
Employee compensation-related shares (including
|
|||||||||||
stock options)
|
71
|
-
|
79
|
-
|
|||||||
Total average equivalent shares
|
10,158
|
10,087
|
10,110
|
10,031
|
|||||||
Per-share amounts
|
|||||||||||
Earnings (loss) from continuing operations
|
$
|
0.24
|
$
|
0.24
|
$
|
0.28
|
$
|
0.29
|
|||
Earnings (loss) from discontinued operations
|
(0.37)
|
(0.37)
|
0.07
|
0.07
|
|||||||
Net earnings (loss)
|
(0.13)
|
(0.13)
|
0.35
|
0.35
|
|||||||
Six months ended June 30
|
|||||||||||
2015
|
2014
|
||||||||||
(In millions; per-share amounts in dollars)
|
Diluted
|
Basic
|
Diluted
|
Basic
|
|||||||
Amounts attributable to the Company:
|
|||||||||||
Consolidated
|
|||||||||||
Earnings (loss) from continuing operations attributable to
|
|||||||||||
common shareowners for per-share calculation(a)(b)
|
$
|
(4,950)
|
$
|
(4,950)
|
$
|
5,178
|
$
|
5,178
|
|||
Earnings (loss) from discontinued operations
|
|||||||||||
for per-share calculation(a)(b)
|
(9,995)
|
(9,995)
|
1,358
|
1,358
|
|||||||
Net earnings (loss) attributable to GE common
|
|||||||||||
shareowners for per-share calculation(a)(b)
|
$
|
(14,939)
|
$
|
(14,939)
|
$
|
6,536
|
$
|
6,536
|
|||
Average equivalent shares
|
|||||||||||
Shares of GE common stock outstanding
|
10,077
|
10,077
|
10,041
|
10,041
|
|||||||
Employee compensation-related shares (including
|
|||||||||||
stock options)
|
-
|
-
|
79
|
-
|
|||||||
Total average equivalent shares
|
10,077
|
10,077
|
10,120
|
10,041
|
|||||||
Per-share amounts
|
|||||||||||
Earnings (loss) from continuing operations
|
$
|
(0.49)
|
$
|
(0.49)
|
$
|
0.51
|
$
|
0.52
|
|||
Earnings (loss) from discontinued operations
|
(0.99)
|
(0.99)
|
0.13
|
0.14
|
|||||||
Net earnings (loss)
|
(1.48)
|
(1.48)
|
0.65
|
0.65
|
|||||||
(b)
|
Included an insignificant amount of dividend equivalents in each of the periods presented.
|
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, 2015
|
||||||||||||||
Assets
|
||||||||||||||
Investment securities
|
||||||||||||||
Debt
|
||||||||||||||
U.S. corporate
|
$
|
-
|
$
|
19,817
|
$
|
3,024
|
$
|
-
|
$
|
22,841
|
||||
State and municipal
|
-
|
4,222
|
101
|
-
|
4,323
|
|||||||||
Residential mortgage-backed
|
-
|
1,156
|
2
|
-
|
1,158
|
|||||||||
Commercial mortgage-backed
|
-
|
2,459
|
2
|
-
|
2,461
|
|||||||||
Asset-backed
|
-
|
22
|
76
|
-
|
98
|
|||||||||
Corporate – non-U.S.
|
12
|
619
|
283
|
-
|
914
|
|||||||||
Government – non-U.S.
|
28
|
1,808
|
2
|
-
|
1,838
|
|||||||||
U.S. government and federal agency
|
-
|
5,291
|
293
|
-
|
5,584
|
|||||||||
Equity
|
||||||||||||||
Available-for-sale
|
177
|
19
|
6
|
-
|
202
|
|||||||||
Trading
|
19
|
-
|
-
|
-
|
19
|
|||||||||
Derivatives(c)
|
-
|
7,156
|
72
|
(5,761)
|
1,467
|
|||||||||
Other (d)
|
-
|
-
|
222
|
-
|
222
|
|||||||||
Total
|
$
|
236
|
$
|
42,569
|
$
|
4,083
|
$
|
(5,761)
|
$
|
41,127
|
||||
Liabilities
|
||||||||||||||
Derivatives
|
$
|
-
|
$
|
5,419
|
$
|
11
|
$
|
(4,807)
|
$
|
623
|
||||
Other(e)
|
-
|
1,145
|
-
|
-
|
1,145
|
|||||||||
Total
|
$
|
-
|
$
|
6,564
|
$
|
11
|
$
|
(4,807)
|
$
|
1,768
|
||||
December 31, 2014
|
||||||||||||||
Assets
|
||||||||||||||
Investment securities
|
||||||||||||||
Debt
|
||||||||||||||
U.S. corporate
|
$
|
-
|
$
|
20,659
|
$
|
3,056
|
$
|
-
|
$
|
23,715
|
||||
State and municipal
|
-
|
4,560
|
115
|
-
|
4,675
|
|||||||||
Residential mortgage-backed
|
-
|
1,676
|
16
|
-
|
1,692
|
|||||||||
Commercial mortgage-backed
|
-
|
3,054
|
9
|
-
|
3,063
|
|||||||||
Asset-backed
|
-
|
172
|
123
|
-
|
295
|
|||||||||
Corporate – non-U.S.
|
-
|
680
|
337
|
-
|
1,017
|
|||||||||
Government – non-U.S.
|
-
|
1,708
|
2
|
-
|
1,710
|
|||||||||
U.S. government and federal agency
|
-
|
1,747
|
266
|
-
|
2,013
|
|||||||||
Equity
|
-
|
|||||||||||||
Available-for-sale
|
171
|
19
|
9
|
-
|
199
|
|||||||||
Trading
|
21
|
-
|
-
|
-
|
21
|
|||||||||
Derivatives(c)
|
-
|
9,957
|
40
|
(7,584)
|
2,413
|
|||||||||
Other (d)
|
-
|
-
|
277
|
-
|
277
|
|||||||||
Total
|
$
|
192
|
$
|
44,232
|
$
|
4,250
|
$
|
(7,584)
|
$
|
41,090
|
||||
Liabilities
|
||||||||||||||
Derivatives
|
$
|
-
|
$
|
4,890
|
$
|
13
|
$
|
(4,363)
|
$
|
540
|
||||
Other(e)
|
-
|
1,178
|
-
|
-
|
1,178
|
|||||||||
Total
|
$
|
-
|
$
|
6,068
|
$
|
13
|
$
|
(4,363)
|
$
|
1,718
|
||||
(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. The cumulative adjustment was a gain (loss) of $14 million and $16 million at June 30, 2015 and December 31, 2014, respectively. See Note 15 for additional information on the composition of our derivative portfolio. |
(d) | Includes private equity investments. |
(e) | Primarily represented the liability 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
|
included
|
into
|
out of
|
Balance at
|
still held at
|
|||||||||||||||||||||
(In millions)
|
April 1
|
in earnings(a)
|
in AOCI
|
Purchases
|
Sales
|
Settlements
|
Level 3(b)
|
Level 3(b)
|
June 30
|
June 30(c)
|
|||||||||||||||||
2015
|
|||||||||||||||||||||||||||
Investment securities
|
|||||||||||||||||||||||||||
Debt
|
|||||||||||||||||||||||||||
U.S. corporate
|
$
|
3,163
|
$
|
(10)
|
$
|
(145)
|
$
|
87
|
$
|
(38)
|
$
|
(20)
|
$
|
-
|
$
|
(13)
|
$
|
3,024
|
$
|
-
|
|||||||
State and municipal
|
114
|
-
|
(5)
|
-
|
-
|
(8)
|
-
|
-
|
101
|
-
|
|||||||||||||||||
RMBS
|
2
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2
|
-
|
|||||||||||||||||
CMBS
|
2
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2
|
-
|
|||||||||||||||||
ABS
|
111
|
(14)
|
(8)
|
-
|
-
|
-
|
-
|
(13)
|
76
|
-
|
|||||||||||||||||
Corporate – non-U.S.
|
290
|
-
|
(7)
|
-
|
-
|
-
|
-
|
-
|
283
|
-
|
|||||||||||||||||
Government – non-U.S.
|
2
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2
|
-
|
|||||||||||||||||
U.S. government and
|
|||||||||||||||||||||||||||
federal agency
|
291
|
-
|
2
|
-
|
-
|
-
|
-
|
-
|
293
|
-
|
|||||||||||||||||
Equity
|
|||||||||||||||||||||||||||
Available-for-sale
|
5
|
-
|
-
|
6
|
(5)
|
-
|
-
|
-
|
6
|
-
|
|||||||||||||||||
Derivatives(d)(e)
|
40
|
(4)
|
-
|
-
|
-
|
(6)
|
42
|
-
|
72
|
(7)
|
|||||||||||||||||
Other
|
225
|
4
|
-
|
-
|
(7)
|
-
|
-
|
-
|
222
|
1
|
|||||||||||||||||
Total
|
$
|
4,245
|
$
|
(24)
|
$
|
(163)
|
$
|
93
|
$
|
(50)
|
$
|
(34)
|
$
|
42
|
$
|
(26)
|
$
|
4,083
|
$
|
(6)
|
|||||||
2014
|
|||||||||||||||||||||||||||
Investment securities
|
|||||||||||||||||||||||||||
Debt
|
|||||||||||||||||||||||||||
U.S. corporate
|
$
|
3,011
|
$
|
12
|
$
|
56
|
$
|
187
|
$
|
(157)
|
$
|
(27)
|
$
|
41
|
$
|
(63)
|
$
|
3,060
|
$
|
-
|
|||||||
State and municipal
|
105
|
-
|
4
|
1
|
-
|
-
|
-
|
-
|
110
|
-
|
|||||||||||||||||
RMBS
|
81
|
1
|
1
|
-
|
(16)
|
(1)
|
-
|
-
|
66
|
-
|
|||||||||||||||||
CMBS
|
12
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
12
|
-
|
|||||||||||||||||
ABS
|
142
|
1
|
2
|
-
|
-
|
(5)
|
-
|
(10)
|
130
|
-
|
|||||||||||||||||
Corporate – non-U.S.
|
522
|
12
|
36
|
-
|
(54)
|
-
|
1
|
(6)
|
511
|
-
|
|||||||||||||||||
Government – non-U.S.
|
1
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
-
|
|||||||||||||||||
U.S. government and
|
|||||||||||||||||||||||||||
federal agency
|
232
|
-
|
17
|
-
|
-
|
-
|
-
|
-
|
249
|
-
|
|||||||||||||||||
Retained interests
|
1
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
-
|
|||||||||||||||||
Equity
|
|||||||||||||||||||||||||||
Available-for-sale
|
11
|
-
|
-
|
2
|
(2)
|
(2)
|
-
|
-
|
9
|
-
|
|||||||||||||||||
Derivatives(d)(e)
|
26
|
4
|
-
|
(3)
|
-
|
3
|
-
|
(1)
|
29
|
3
|
|||||||||||||||||
Other
|
189
|
10
|
-
|
20
|
(2)
|
-
|
-
|
-
|
217
|
14
|
|||||||||||||||||
Total
|
$
|
4,333
|
$
|
40
|
$
|
116
|
$
|
207
|
$
|
(231)
|
$
|
(32)
|
$
|
42
|
$
|
(80)
|
$
|
4,395
|
$
|
17
|
|||||||
(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 included cash accruals of $11 million and $8 million not reflected in the fair value hierarchy table for the three months ended June 30, 2015 and 2014, 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 Note 15.
|
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
|
included
|
into
|
out of
|
Balance at
|
still held at
|
|||||||||||||||||||||
(In millions)
|
January 1
|
in earnings(a)
|
in AOCI
|
Purchases
|
Sales
|
Settlements
|
Level 3(b)
|
Level 3(b)
|
June 30
|
June 30(c)
|
|||||||||||||||||
2015
|
|||||||||||||||||||||||||||
Investment securities
|
|||||||||||||||||||||||||||
Debt
|
|||||||||||||||||||||||||||
U.S. corporate
|
$
|
3,056
|
$
|
(3)
|
$
|
(86)
|
$
|
181
|
$
|
(55)
|
$
|
(56)
|
$
|
-
|
$
|
(13)
|
$
|
3,024
|
$
|
-
|
|||||||
State and municipal
|
115
|
-
|
(4)
|
-
|
-
|
(10)
|
-
|
-
|
101
|
-
|
|||||||||||||||||
RMBS
|
16
|
5
|
(4)
|
-
|
(15)
|
-
|
-
|
-
|
2
|
-
|
|||||||||||||||||
CMBS
|
9
|
-
|
-
|
-
|
(7)
|
-
|
-
|
-
|
2
|
-
|
|||||||||||||||||
ABS
|
123
|
(14)
|
(5)
|
-
|
(12)
|
(3)
|
-
|
(13)
|
76
|
-
|
|||||||||||||||||
Corporate – non-U.S.
|
337
|
-
|
(4)
|
-
|
(50)
|
-
|
-
|
-
|
283
|
-
|
|||||||||||||||||
Government – non-U.S.
|
2
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2
|
-
|
|||||||||||||||||
U.S. government and
|
|||||||||||||||||||||||||||
federal agency
|
266
|
-
|
28
|
-
|
-
|
(1)
|
-
|
-
|
293
|
-
|
|||||||||||||||||
Equity
|
|||||||||||||||||||||||||||
Available-for-sale
|
9
|
2
|
(2)
|
6
|
(5)
|
(4)
|
-
|
-
|
6
|
-
|
|||||||||||||||||
Derivatives(d)(e)
|
36
|
(1)
|
2
|
1
|
-
|
(8)
|
42
|
-
|
72
|
(3)
|
|||||||||||||||||
Other
|
277
|
(34)
|
-
|
-
|
(21)
|
-
|
-
|
-
|
222
|
(37)
|
|||||||||||||||||
Total
|
$
|
4,246
|
$
|
(45)
|
$
|
(75)
|
$
|
188
|
$
|
(165)
|
$
|
(82)
|
$
|
42
|
$
|
(26)
|
$
|
4,083
|
$
|
(40)
|
|||||||
2014
|
|||||||||||||||||||||||||||
Investment securities
|
|||||||||||||||||||||||||||
Debt
|
|||||||||||||||||||||||||||
U.S. corporate
|
$
|
2,787
|
$
|
18
|
$
|
119
|
$
|
339
|
$
|
(156)
|
$
|
(68)
|
$
|
138
|
$
|
(117)
|
$
|
3,060
|
$
|
-
|
|||||||
State and municipal
|
96
|
-
|
7
|
10
|
-
|
(3)
|
-
|
-
|
110
|
-
|
|||||||||||||||||
RMBS
|
86
|
1
|
-
|
-
|
(16)
|
(5)
|
-
|
-
|
66
|
-
|
|||||||||||||||||
CMBS
|
10
|
-
|
-
|
-
|
-
|
-
|
2
|
-
|
12
|
-
|
|||||||||||||||||
ABS
|
145
|
2
|
4
|
-
|
-
|
(11)
|
-
|
(10)
|
130
|
-
|
|||||||||||||||||
Corporate – non-U.S.
|
515
|
13
|
43
|
-
|
(54)
|
(1)
|
1
|
(6)
|
511
|
-
|
|||||||||||||||||
Government – non-U.S.
|
31
|
-
|
-
|
-
|
-
|
-
|
-
|
(30)
|
1
|
-
|
|||||||||||||||||
U.S. government and
|
|||||||||||||||||||||||||||
federal agency
|
225
|
-
|
26
|
-
|
-
|
-
|
-
|
(2)
|
249
|
-
|
|||||||||||||||||
Retained interests
|
1
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
-
|
|||||||||||||||||
Equity
|
|||||||||||||||||||||||||||
Available-for-sale
|
11
|
-
|
-
|
2
|
(2)
|
(2)
|
-
|
-
|
9
|
-
|
|||||||||||||||||
Derivatives(d)(e)
|
20
|
7
|
-
|
1
|
-
|
3
|
(1)
|
(1)
|
29
|
14
|
|||||||||||||||||
Other
|
201
|
11
|
-
|
20
|
(15)
|
-
|
-
|
-
|
217
|
5
|
|||||||||||||||||
Total
|
$
|
4,128
|
$
|
52
|
$
|
199
|
$
|
372
|
$
|
(243)
|
$
|
(87)
|
$
|
140
|
$
|
(166)
|
$
|
4,395
|
$
|
19
|
|||||||
(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 included cash accruals of $11 million and $8 million not reflected in the fair value hierarchy table for the six months ended June 30, 2015 and 2014, 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 Note 15.
|
Remeasured during
|
Remeasured during
|
||||||||||
the six months ended
|
the year ended
|
||||||||||
June 30, 2015
|
December 31, 2014
|
||||||||||
(In millions)
|
Level 2
|
Level 3
|
Level 2
|
Level 3
|
|||||||
Financing receivables and financing receivables held for sale
|
$
|
-
|
$
|
22,532
|
$
|
1
|
$
|
584
|
|||
Cost and equity method investments
|
-
|
2,123
|
-
|
346
|
|||||||
Long-lived assets, including real estate
|
-
|
159
|
102
|
718
|
|||||||
Total
|
$
|
-
|
$
|
24,814
|
$
|
103
|
$
|
1,648
|
|||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Financing receivables and financing receivables held for sale
|
$
|
(27)
|
$
|
(89)
|
$
|
(2,447)
|
$
|
(117)
|
|||
Cost and equity method investments
|
(60)
|
(42)
|
(1,509)
|
(203)
|
|||||||
Long-lived assets, including real estate
|
(25)
|
(58)
|
(81)
|
(83)
|
|||||||
Total
|
$
|
(112)
|
$
|
(189)
|
$
|
(4,037)
|
$
|
(403)
|
|||
(a)
|
June 30, 2015
|
December 31, 2014
|
||||||||||||||||
Assets (liabilities)
|
Assets (liabilities)
|
||||||||||||||||
Carrying
|
Carrying
|
||||||||||||||||
Notional
|
amount
|
Estimated
|
Notional
|
amount
|
Estimated
|
||||||||||||
(In millions)
|
amount
|
(net)
|
fair value
|
amount
|
(net)
|
fair value
|
|||||||||||
GE
|
|||||||||||||||||
Assets
|
|||||||||||||||||
Investments and notes receivable
|
$
|
(a)
|
$
|
621
|
$
|
668
|
$
|
(a)
|
$
|
502
|
$
|
551
|
|||||
Liabilities
|
|||||||||||||||||
Borrowings(b)(c)
|
(a)
|
(20,617)
|
(21,032)
|
(a)
|
(16,340)
|
(17,503)
|
|||||||||||
GECC
|
|||||||||||||||||
Assets
|
|||||||||||||||||
Loans
|
(a)
|
75,795
|
82,002
|
(a)
|
115,889
|
120,067
|
|||||||||||
Other commercial mortgages
|
(a)
|
1,400
|
1,549
|
(a)
|
1,427
|
1,508
|
|||||||||||
Loans held for sale
|
(a)
|
26,998
|
27,560
|
(a)
|
778
|
799
|
|||||||||||
Other financial instruments(d)
|
(a)
|
144
|
179
|
(a)
|
122
|
136
|
|||||||||||
Liabilities
|
|||||||||||||||||
Borrowings and bank deposits(b)(e)(f)
|
(a)
|
(296,389)
|
(308,380)
|
(a)
|
(317,674)
|
(333,956)
|
|||||||||||
Investment contract benefits
|
(a)
|
(2,871)
|
(3,352)
|
(a)
|
(2,970)
|
(3,565)
|
|||||||||||
Guaranteed investment contracts
|
(a)
|
(970)
|
(996)
|
(a)
|
(1,000)
|
(1,031)
|
|||||||||||
Insurance – credit life(g)
|
-
|
-
|
-
|
1,843
|
(90)
|
(77)
|
|||||||||||
(b) | See Note 8. |
(d) | Principally comprises cost method investments. |
(e) | 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, 2015 and December 31, 2014 would have been reduced by $3,331 million and $5,020 million, respectively. |
(f) | Included $2,569 million and $2,888 million of accrued interest in estimated fair value at June 30, 2015 and December 31, 2014, respectively. |
(g) | Net of reinsurance of none and $964 million at June 30, 2015 and December 31, 2014, respectively. |
NOTIONAL AMOUNTS OF LOAN COMMITMENTS
|
||||||
(In millions)
|
June 30, 2015
|
December 31, 2014
|
||||
Ordinary course of business lending commitments(a)
|
$
|
744
|
$
|
1,214
|
||
Unused revolving credit lines(b)
|
||||||
Commercial
|
2,514
|
2,908
|
||||
Consumer – principally credit cards
|
315,220
|
306,188
|
||||
(a)
|
(b)
|
Excluded amounts related to inventory financing arrangements, which may be withdrawn at our option, of $54 million and $47 million at June 30, 2015 and December 31, 2014, respectively.
|
FAIR VALUE OF DERIVATIVES
|
|||||||||||
June 30, 2015
|
December 31, 2014
|
||||||||||
(In millions)
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
|||||||
Derivatives accounted for as hedges
|
|||||||||||
Interest rate contracts
|
$
|
4,480
|
$
|
234
|
$
|
5,859
|
$
|
461
|
|||
Currency exchange contracts
|
1,366
|
1,460
|
2,579
|
884
|
|||||||
Other contracts
|
-
|
3
|
-
|
2
|
|||||||
5,846
|
1,697
|
8,438
|
1,347
|
||||||||
Derivatives not accounted for as hedges
|
|||||||||||
Interest rate contracts
|
82
|
54
|
111
|
64
|
|||||||
Currency exchange contracts
|
1,037
|
3,637
|
1,209
|
3,450
|
|||||||
Other contracts
|
263
|
42
|
239
|
42
|
|||||||
1,382
|
3,733
|
1,559
|
3,556
|
||||||||
Gross derivatives recognized in statement of
|
|||||||||||
financial position
|
|||||||||||
Gross derivatives
|
7,228
|
5,430
|
9,997
|
4,903
|
|||||||
Gross accrued interest
|
1,047
|
(73)
|
1,392
|
(24)
|
|||||||
8,275
|
5,357
|
11,389
|
4,879
|
||||||||
Amounts offset in statement of financial position
|
|||||||||||
Netting adjustments(a)
|
(3,750)
|
(3,764)
|
(3,886)
|
(3,902)
|
|||||||
Cash collateral(b)
|
(2,011)
|
(1,043)
|
(3,698)
|
(461)
|
|||||||
(5,761)
|
(4,807)
|
(7,584)
|
(4,363)
|
||||||||
Net derivatives recognized in statement of
|
|||||||||||
financial position
|
|||||||||||
Net derivatives
|
2,514
|
550
|
3,805
|
516
|
|||||||
Amounts not offset in statement of
|
|||||||||||
financial position
|
|||||||||||
Securities held as collateral(c)
|
(1,301)
|
-
|
(3,188)
|
-
|
|||||||
Net amount
|
$
|
1,213
|
$
|
550
|
$
|
617
|
$
|
516
|
|||
(a)
|
The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts
include
fair value adjustments related to our own and counterparty non-performance risk. At June 30, 2015 and December 31, 2014, the cumulative adjustment for non-performance risk was a gain (loss) of $14 million and $16 million, respectively.
|
(b)
|
Excluded excess cash collateral received and posted of $226 million and $105 million at June 30, 2015, respectively, and $63 million and $211 million at December 31, 2014, respectively.
|
(c)
|
Excluded excess securities collateral received of $12 million and $397 million at June 30, 2015 and December 31, 2014, respectively.
|
EARNINGS EFFECTS OF FAIR VALUE HEDGING RELATIONSHIPS
|
|||||||||||
Three months ended June 30
|
|||||||||||
2015
|
2014
|
||||||||||
Gain (loss)
|
Gain (loss)
|
Gain (loss)
|
Gain (loss)
|
||||||||
on hedging
|
on hedged
|
on hedging
|
on hedged
|
||||||||
(In millions)
|
derivatives
|
items
|
derivatives
|
items
|
|||||||
Interest rate contracts
|
$
|
(1,937)
|
$
|
1,884
|
$
|
725
|
$
|
(774)
|
|||
Currency exchange contracts
|
7
|
(7)
|
(5)
|
5
|
|||||||
EARNINGS EFFECTS OF FAIR VALUE HEDGING RELATIONSHIPS
|
|||||||||||
Six months ended June 30
|
|||||||||||
2015
|
2014
|
||||||||||
Gain (loss)
|
Gain (loss)
|
Gain (loss)
|
Gain (loss)
|
||||||||
on hedging
|
on hedged
|
on hedging
|
on hedged
|
||||||||
(In millions)
|
derivatives
|
items
|
derivatives
|
items
|
|||||||
Interest rate contracts
|
$
|
(877)
|
$
|
793
|
$
|
1,715
|
$
|
(1,779)
|
|||
Currency exchange contracts
|
-
|
(1)
|
(3)
|
2
|
|||||||
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)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Interest rate contracts
|
$
|
(7)
|
$
|
(12)
|
$
|
(22)
|
$
|
(60)
|
|||
Currency exchange contracts
|
452
|
(181)
|
437
|
(159)
|
|||||||
Commodity contracts
|
1
|
1
|
-
|
-
|
|||||||
Total(a)
|
$
|
446
|
$
|
(192)
|
$
|
415
|
$
|
(219)
|
|||
(a) | Gain (loss) is recorded in GECC revenues from services, interest and other financial charges, and other costs and expenses when reclassified to earnings. |
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)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Interest rate contracts
|
$
|
(10)
|
$
|
(9)
|
$
|
(61)
|
$
|
(129)
|
|||
Currency exchange contracts
|
(625)
|
(25)
|
(520)
|
(51)
|
|||||||
Commodity contracts
|
(2)
|
(1)
|
(1)
|
(2)
|
|||||||
Total(a)
|
$
|
(637)
|
$
|
(35)
|
$
|
(582)
|
$
|
(182)
|
|||
(a) | Gain (loss) is recorded in GECC revenues from services, interest and other financial charges, and other costs and expenses when reclassified to earnings. |
GAINS (LOSSES) RECOGNIZED THROUGH CTA
|
|||||||||||
Gain (loss) recognized in CTA
|
Gain (loss) reclassified from CTA
|
||||||||||
for the three months ended June 30
|
for the three months ended June 30
|
||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Derivative and non-derivative instruments
|
$
|
(1,566)
|
$
|
435
|
$
|
(196)
|
$
|
-
|
|||
GAINS (LOSSES) RECOGNIZED THROUGH CTA
|
|||||||||||
Gain (loss) recognized in CTA
|
Gain (loss) reclassified from CTA
|
||||||||||
for the six months ended June 30
|
for the six months ended June 30
|
||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Derivative and non-derivative instruments
|
$
|
3,423
|
$
|
(598)
|
$
|
589
|
$
|
10
|
|||
|
Trinity comprises two consolidated entities that hold investment securities, the majority of which are investment-grade, and were funded by the issuance of GICs. The GICs include conditions under which certain holders could require immediate repayment of their investment should the long-term credit ratings of GECC fall below AA-/Aa3 or the short-term credit ratings fall below A-1+/P-1. The outstanding GICs are subject to their scheduled maturities and individual terms, which may include provisions permitting redemption upon a downgrade of one or more of GECC's ratings, among other things, and are reported in investment contracts, insurance liabilities and insurance annuity benefits.
|
|
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.
|
ASSETS AND LIABILITIES OF CONSOLIDATED VIEs
|
||||||||||||||
Consolidated Securitization Entities(b)
|
||||||||||||||
Trade
|
||||||||||||||
(In millions)
|
Trinity(a)
|
Credit cards
|
receivables
|
Other
|
Total
|
|||||||||
June 30, 2015
|
||||||||||||||
Assets(c)
|
||||||||||||||
Financing receivables, net
|
$
|
-
|
$
|
24,199
|
$
|
-
|
$
|
898
|
$
|
25,097
|
||||
Current receivables
|
-
|
-
|
3,148
|
(d)
|
458
|
3,606
|
||||||||
Investment securities
|
2,203
|
-
|
-
|
983
|
3,186
|
|||||||||
Other assets
|
154
|
143
|
2
|
2,019
|
2,318
|
|||||||||
Total
|
$
|
2,357
|
$
|
24,342
|
$
|
3,150
|
$
|
4,358
|
$
|
34,207
|
||||
Liabilities(c)
|
||||||||||||||
Borrowings
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
621
|
$
|
621
|
||||
Non-recourse borrowings
|
-
|
13,948
|
2,704
|
339
|
16,991
|
|||||||||
Other liabilities
|
986
|
18
|
34
|
1,342
|
2,380
|
|||||||||
Total
|
$
|
986
|
$
|
13,966
|
$
|
2,738
|
$
|
2,302
|
$
|
19,992
|
||||
December 31, 2014
|
||||||||||||||
Assets(c)
|
||||||||||||||
Financing receivables, net
|
$
|
-
|
$
|
25,645
|
$
|
-
|
$
|
1,030
|
$
|
26,675
|
||||
Current receivables
|
-
|
-
|
3,028
|
(d)
|
509
|
3,537
|
||||||||
Investment securities
|
2,369
|
-
|
-
|
1,005
|
3,374
|
|||||||||
Other assets
|
17
|
1,059
|
2
|
2,345
|
3,423
|
|||||||||
Total
|
$
|
2,386
|
$
|
26,704
|
$
|
3,030
|
$
|
4,889
|
$
|
37,009
|
||||
Liabilities(c)
|
||||||||||||||
Borrowings
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
517
|
$
|
517
|
||||
Non-recourse borrowings
|
-
|
14,967
|
2,692
|
436
|
18,095
|
|||||||||
Other liabilities
|
1,022
|
332
|
26
|
1,490
|
2,870
|
|||||||||
Total
|
$
|
1,022
|
$
|
15,299
|
$
|
2,718
|
$
|
2,443
|
$
|
21,482
|
||||
(a)
|
(b)
|
We provide servicing to the CSEs and are contractually permitted to commingle cash collected from customers on financing receivables sold to CSE investors with our own cash prior to payment to a CSE, provided our short-term credit rating does not fall below A-1/P-1. These CSEs also owe us amounts for purchased financial assets and scheduled interest and principal payments. At June 30, 2015 and December 31, 2014, the amounts of commingled cash owed to the CSEs were $921 million and $1,091 million, respectively, and the amounts owed to us by CSEs were $193 million and $391 million, respectively.
|
(c)
|
Asset amounts exclude intercompany receivables for cash collected on behalf of the entities by GECC as servicer, which are eliminated in consolidation. Such receivables provide the cash to repay the entities' liabilities. If these intercompany receivables were included in the table above, assets would be higher. In addition, other assets, borrowings and other liabilities exclude intercompany balances that are eliminated in consolidation.
|
(d)
|
Included $785 million and $686 million of receivables at June 30, 2015 and December 31, 2014, respectively, originated by Appliances. We require third party debt holder consent to sell these assets. The receivables will be included in assets of businesses held for sale when the consent is received.
|
INVESTMENTS IN UNCONSOLIDATED VIEs
|
|||||
(In millions)
|
June 30, 2015
|
December 31, 2014
|
|||
Other assets and investment securities
|
$
|
689
|
$
|
806
|
|
Financing receivables – net
|
113
|
120
|
|||
Total investments
|
802
|
926
|
|||
Contractual obligations to fund investments, guarantees or revolving lines of credit
|
39
|
37
|
|||
Total
|
$
|
841
|
$
|
963
|
|
Six months ended June 30
|
|||||
(In millions)
|
2015
|
2014
|
|||
Cash from (used for) operating activities-continuing operations
|
|||||
Combined
|
$
|
5,325
|
$
|
7,715
|
|
GE customer receivables sold to GECC
|
1,169
|
510
|
|||
GECC dividends to GE
|
(450)
|
(1,416)
|
|||
Other reclassifications and eliminations
|
386
|
(507)
|
|||
$
|
6,430
|
$
|
6,302
|
||
Cash from (used for) investing activities-continuing operations
|
|||||
Combined
|
$
|
21,632
|
$
|
2,603
|
|
GE customer receivables sold to GECC
|
(1,493)
|
(1,056)
|
|||
Other reclassifications and eliminations
|
(355)
|
(30)
|
|||
$
|
19,784
|
$
|
1,517
|
||
Cash from (used for) financing activities-continuing operations
|
|||||
Combined
|
$
|
(17,768)
|
$
|
(15,413)
|
|
GE customer receivables sold to GECC
|
324
|
546
|
|||
GECC dividends to GE
|
450
|
1,416
|
|||
Other reclassifications and eliminations
|
(31)
|
537
|
|||
$
|
(17,025)
|
$
|
(12,914)
|
||
PAST DUE AND NONACCRUAL FINANCING RECEIVABLES
|
||||||||||||||||
June 30, 2015
|
December 31, 2014
|
|||||||||||||||
Over 30 days
|
Over 90 days
|
Over 30 days
|
Over 90 days
|
|||||||||||||
(In millions)
|
past due
|
past due
|
Nonaccrual
|
past due
|
past due
|
Nonaccrual
|
||||||||||
Commercial
|
||||||||||||||||
CLL
|
$
|
548
|
$
|
172
|
$
|
20
|
$
|
610
|
$
|
131
|
$
|
25
|
||||
Energy Financial Services
|
7
|
7
|
28
|
-
|
-
|
68
|
||||||||||
GECAS
|
1
|
-
|
318
|
-
|
-
|
419
|
||||||||||
Total Commercial
|
556
|
179
|
366
|
(a)
|
610
|
131
|
512
|
(a)
|
||||||||
Consumer
|
2,171
|
933
|
(b)
|
2
|
(c)
|
5,137
|
2,495
|
(b)
|
1,484
|
(c)
|
||||||
Total
|
$
|
2,727
|
$
|
1,112
|
$
|
368
|
$
|
5,747
|
$
|
2,626
|
$
|
1,996
|
||||
Total as a percent of financing receivables
|
3.2
%
|
1.3
%
|
0.4 %
|
4.5
%
|
2.1
%
|
1.6
%
|
||||||||||
(a) | Included $349 million and $484 million at June 30, 2015 and December 31, 2014, respectively, which are currently paying in accordance with their contractual terms. |
(b)
|
Included $931 million and $1,231 million of Consumer loans at June 30, 2015 and December 31, 2014, respectively, which are over 90 days past due and continue to accrue interest until the accounts are written off in the period that the account becomes 180 days past due.
|
(c)
|
Included none and $179 million at June 30, 2015 and December 31, 2014, respectively, which are currently paying in accordance with their contractual terms.
|
IMPAIRED LOANS AND RELATED RESERVES
|
|||||||||||||||||||
With no specific allowance
|
With a specific allowance
|
||||||||||||||||||
Recorded
|
Unpaid
|
Average
|
Recorded
|
Unpaid
|
Average
|
||||||||||||||
investment
|
principal
|
investment
|
investment
|
principal
|
Associated
|
investment
|
|||||||||||||
(In millions)
|
in loans
|
balance
|
in loans
|
in loans
|
balance
|
allowance(a)
|
in loans
|
||||||||||||
June 30, 2015
|
|||||||||||||||||||
Commercial
|
|||||||||||||||||||
CLL
|
$
|
13
|
$
|
15
|
$
|
10
|
$
|
4
|
$
|
4
|
$
|
3
|
$
|
5
|
|||||
Energy Financial Services
|
28
|
29
|
45
|
-
|
-
|
-
|
8
|
||||||||||||
GECAS
|
237
|
245
|
246
|
-
|
-
|
-
|
-
|
||||||||||||
Other
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||
Total Commercial(b)
|
278
|
289
|
301
|
4
|
4
|
3
|
13
|
||||||||||||
Consumer(c)
|
-
|
-
|
46
|
719
|
626
|
(d)
|
238
|
1,162
|
|||||||||||
Total
|
$
|
278
|
$
|
289
|
$
|
347
|
$
|
723
|
$
|
630
|
$
|
241
|
$
|
1,175
|
|||||
December 31, 2014
|
|||||||||||||||||||
Commercial
|
|||||||||||||||||||
CLL
|
$
|
10
|
$
|
10
|
$
|
7
|
$
|
5
|
$
|
5
|
$
|
4
|
$
|
4
|
|||||
Energy Financial Services
|
53
|
54
|
26
|
15
|
15
|
12
|
24
|
||||||||||||
GECAS
|
329
|
337
|
88
|
-
|
-
|
-
|
15
|
||||||||||||
Other
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
||||||||||||
Total Commercial(b)
|
392
|
401
|
121
|
20
|
20
|
16
|
44
|
||||||||||||
Consumer(c)
|
138
|
179
|
120
|
2,042
|
2,092
|
408
|
2,547
|
||||||||||||
Total
|
$
|
530
|
$
|
580
|
$
|
241
|
$
|
2,062
|
$
|
2,112
|
$
|
424
|
$
|
2,591
|
|||||
(b)
|
We recognized insignificant amounts of interest income, including none on a cash basis, in the six months ended June 30, 2015, the year ended December 31, 2014 and the six months ended June 30, 2014, respectively, in CLL. The total average investment in impaired loans for the six months ended June 30, 2015 and the year ended December 31, 2014 was $314 million and $165 million, respectively.
|
(c)
|
We recognized $36 million, $126 million and $91 million of interest income, including $1 million, $5 million and $1 million on a cash basis, in the six months ended June 30, 2015, the year ended December 31, 2014 and the six months ended June 30, 2014, respectively. The total average investment in impaired loans for the six months ended June 30, 2015 and the year ended December 31, 2014 was $1,208 million and $2,667 million, respectively.
|
(d)
|
Unpaid principal balance excludes accrued interest and fees.
|
(In millions)
|
Non-impaired financing receivables
|
General reserves
|
Impaired loans
|
Specific reserves
|
|||||||
June 30, 2015
|
|||||||||||
Commercial
|
$
|
22,763
|
$
|
88
|
$
|
282
|
$
|
3
|
|||
Consumer
|
60,712
|
3,064
|
719
|
238
|
|||||||
Total
|
$
|
83,475
|
$
|
3,152
|
$
|
1,001
|
$
|
241
|
|||
December 31, 2014
|
|||||||||||
Commercial
|
$
|
25,329
|
$
|
77
|
$
|
412
|
$
|
16
|
|||
Consumer
|
98,640
|
3,603
|
2,180
|
408
|
|||||||
Total
|
$
|
123,969
|
$
|
3,680
|
$
|
2,592
|
$
|
424
|
|||
IMPAIRED LOAN BALANCE CLASSIFIED BY THE METHOD USED TO MEASURE IMPAIRMENT
|
|||||||||||
(In millions)
|
June 30, 2015
|
December 31, 2014
|
|||||||||
Discounted cash flow
|
$
|
797
|
$
|
2,149
|
|||||||
Collateral value
|
204
|
443
|
|||||||||
Total
|
$
|
1,001
|
$
|
2,592
|
|||||||
COMMERCIAL FINANCING RECEIVABLES BY RISK CATEGORY
|
|||||||||||
Secured
|
|||||||||||
(In millions)
|
A
|
B
|
C
|
Total
|
|||||||
June 30, 2015
|
|||||||||||
CLL
|
$
|
12,159
|
$
|
37
|
$
|
32
|
$
|
12,228
|
|||
Energy Financial Services
|
2,495
|
41
|
142
|
2,678
|
|||||||
GECAS
|
7,206
|
225
|
97
|
7,528
|
|||||||
Other
|
151
|
-
|
-
|
151
|
|||||||
Total
|
$
|
22,011
|
$
|
303
|
$
|
271
|
$
|
22,585
|
|||
December 31, 2014
|
|||||||||||
CLL
|
$
|
14,271
|
$
|
49
|
$
|
98
|
$
|
14,418
|
|||
Energy Financial Services
|
2,479
|
60
|
16
|
2,555
|
|||||||
GECAS
|
7,908
|
237
|
118
|
8,263
|
|||||||
Other
|
130
|
-
|
-
|
130
|
|||||||
Total
|
$
|
24,788
|
$
|
346
|
$
|
232
|
$
|
25,366
|
|||
Refreshed FICO score
|
|||||||||||||||||
June 30, 2015
|
December 31, 2014
|
||||||||||||||||
661 or
|
601 to
|
600 or
|
661 or
|
601 to
|
600 or
|
||||||||||||
(in millions)
|
higher
|
660
|
less
|
higher
|
660
|
less
|
|||||||||||
U.S. installment and
|
|||||||||||||||||
revolving credit
|
$
|
44,080
|
$
|
11,736
|
$
|
4,149
|
$
|
43,466
|
$
|
11,865
|
$
|
4,532
|
|||||
(a)
|
There have been no significant changes to our market risk since December 31, 2014. For a discussion of our exposure to market risk, refer to our Annual Report on Form 10-K for the year ended December 31, 2014.
|
(b)
|
There have been no significant changes to our risk factors since December 31, 2014. For a discussion of our risk factors, refer to our Annual Report on Form 10-K for the year ended December 31, 2014.
|
General Electric Company
(Registrant) |
|||
July 29, 2015
|
/s/ Jan R. Hauser
|
||
Date
|
Jan R. Hauser
Vice President and Controller
Duly Authorized Officer and Principal Accounting Officer
|
1.
|
PSU Grant.
The Management Development and Compensation Committee ("Committee") of the Board of Directors of General Electric Company ("Company") has granted Performance Stock Units with Dividend Equivalents ("PSUs") to the individual named on the front of this Certificate ("Grantee"). Each PSU entitles the Grantee to receive from the Company (i) one share of General Electric Company common stock, par value $0.06 per share ("Common Stock"), and (ii) cash payments based on dividends paid to shareholders of such stock, for each PSU for which the restrictions set forth in paragraph 3 lapse in accordance with their terms, each in accordance with the terms of this Grant, the GE 2007 Long Term Incentive Plan ("Plan"), and any rules and procedures adopted by the Committee.
|
2.
|
Dividend Equivalents
. Until such time as the following restrictions lapse, or the PSUs are cancelled, whichever occurs first, the Company will establish an amount to be paid to the Grantee ("Dividend Equivalent") equal to the number of PSUs subject to restriction times the per share quarterly dividend payments made to shareholders of the Company's Common Stock. The Company shall accumulate Dividend Equivalents and will pay the Grantee a cash amount equal to the Dividend Equivalents accumulated and unpaid as of the date that restrictions lapse (without interest) reasonably promptly after such date. Notwithstanding the foregoing, any accumulated and unpaid Dividend Equivalents attributable to PSUs that are cancelled will not be paid and are immediately forfeited upon cancellation of the PSUs.
|
3.
|
Restrictions/Performance Goals.
If the Grantee has been continuously employed by the Company to the Restriction Lapse Date, or if earlier, to the date the Grantee's employment with the Company terminates due to death, or retirement on or after the one-year anniversary of the Grant Date, then restrictions on the PSUs specified on the front of this certificate shall lapse on the Restriction Lapse Date as follows:
(i)
Restrictions on one-half (50%) of the PSUs shall lapse if the Company's cumulative Total Cash Generated, adjusted to exclude the effect of unusual events, is equal to or exceeds $XX Billion ("target") for the 3-year period of January 1, XXXX to December 31, XXXX. If the Company's cumulative Total Cash Generated is less than $XX billion, but is equal to or exceeds $XX billion ("threshold"), restrictions on a proportional percentage of the PSUs shall lapse beginning at one-quarter (25%) for threshold performance; and
(ii)
Restrictions on the other one-half (50%) of the PSUs shall lapse if the Company's Operating Margin, adjusted to exclude the effect of unusual events, is equal to or exceeds XX% ("target") for the 1-year period of January 1, XXXX to December 31, XXXX. If the Company's Operating Margin is less than XX%, but is equal to or exceeds XX% ("threshold"), restrictions on a proportional percentage of the PSUs shall lapse beginning at one-quarter (25%) for threshold performance.
Further, the total PSUs for which restrictions lapse in accordance with 3(i) and 3(ii) above shall be adjusted upward by XX% if the Company's Average Annual Total Shareowner % Return ("TSR") is equal to or exceeds the XX
th
percentile of the Average Annual Total Shareowner % Return for the S&P 500 companies ("S&P 500 TSR") for the 3-year period of January 1, XXXX to December 31, XXXX, and shall be adjusted downward by XX% if the Company's TSR is equal to the XX
th
percentile of the S&P 500 TSR. There shall be no adjustment if the Company's TSR is equal to the XX
th
percentile of the S&P 500 TSR, and their shall be a proportional percentage adjustment for Company TSR performance between the XX
th
and XX
th
percentile and between the XX
th
and XX
th
percentile of the S&P 500 TSR.
Measurement of TSR, Total Cash Generated and Operating Margin shall be determined solely by the Committee in accordance with the customary accounting and financial reporting practices used by the Company for external reporting. PSUs for which restrictions do not lapse in accordance with this paragraph shall be immediately cancelled.
|
4.
|
Other Terms.
The Company shall have the right at any time in its sole discretion to amend, alter, suspend, discontinue or terminate any PSUs without the consent of the Grantee.
|
5.
|
Plan Terms.
All terms used in this Grant have the same meaning as given such terms in the Plan, a copy of which will be furnished upon request.
|
6.
|
Entire Agreement.
This Grant, the Plan, and the rules and procedures adopted by the Committee, contain all of the provisions applicable to the PSUs and no other statements, documents or practices may modify, waive or alter such provisions unless expressly set forth in writing, signed by the Chairman of the Committee and delivered to the Grantee.
|
Exhibit 12
|
||
General Electric Company
|
||
Computation of Ratio of Earnings to Fixed Charges
|
||
Six months ended June 30, 2015
|
||
(Unaudited)
|
||
(Dollars in millions)
|
||
General Electric Company and consolidated affiliates
|
||
Earnings(a)
|
$
|
2,145
|
Plus:
|
||
Interest and other financial charges included in expense(b)
|
4,231
|
|
One-third of rental expense(c)
|
271
|
|
Adjusted "earnings"
|
$
|
6,647
|
Fixed charges:
|
||
Interest and other financial charges included in expense(b)
|
$
|
4,231
|
Interest capitalized
|
12
|
|
One-third of rental expense(c)
|
271
|
|
Total fixed charges
|
$
|
4,514
|
Ratio of earnings to fixed charges
|
1.47
|
|
(a) | Earnings before income taxes, noncontrolling interests, discontinued operations and undistributed earnings of equity investees. |
(b) | Included interest on tax deficiencies and interest on discontinued operations. |
(c) | Considered to be representative of interest factor in rental expense. |
I, Jeffrey R. Immelt, certify that:
|
||
|
||
1.
|
I have reviewed this quarterly report on Form 10-Q of General Electric Company;
|
|
|
||
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
|
||
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
|
||
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
|
||
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
|
||
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
|
||
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
|
||
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
|
||
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
|
||
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
|
||
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Jeffrey R. Immelt
|
|
Jeffrey R. Immelt
|
|
Chief Executive Officer
|
I, Jeffrey S. Bornstein, certify that:
|
||
|
||
1.
|
I have reviewed this quarterly report on Form 10-Q of General Electric Company;
|
|
|
||
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
|
||
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
|
||
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
|
||
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
|
||
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
|
||
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
|
||
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
|
||
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
|
||
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
|
||
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Jeffrey S. Bornstein
|
|
Jeffrey S. Bornstein
|
|
Chief Financial Officer
|
(1)
|
The report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the registrant.
|
/s/ Jeffrey R. Immelt
|
|
Jeffrey R. Immelt
|
|
Chief Executive Officer
|
|
/s/ Jeffrey S. Bornstein
|
|
Jeffrey S. Bornstein
|
|
Chief Financial Officer
|
|
Operating and non-operating pension costs
|
|
Operating earnings (loss) and operating EPS
|
|
GE Industrial operating + Vertical EPS
|
|
Industrial segment organic revenue growth
|
|
Oil & Gas organic revenue and operating profit growth
|
|
Industrial Cash Flows from Operating Activities (Industrial CFOA)
|
|
Adjusted Corporate Costs (Operating)
|
|
GE Capital ending net investment (ENI), excluding liquidity
|
|
GECC Tier 1 Common Ratio Estimate
|
OPERATING AND NON-OPERATING PENSION COSTS
|
|||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Service cost for benefits earned
|
$
|
367
|
$
|
299
|
$
|
728
|
$
|
617
|
|||
Prior service cost amortization
|
51
|
54
|
103
|
108
|
|||||||
Curtailment loss
|
-
|
-
|
71
|
-
|
|||||||
Operating pension costs
|
418
|
353
|
902
|
725
|
|||||||
Expected return on plan assets
|
(827)
|
(800)
|
(1,652)
|
(1,601)
|
|||||||
Interest cost on benefit obligations
|
696
|
687
|
1,391
|
1,373
|
|||||||
Net actuarial loss amortization
|
820
|
642
|
1,645
|
1,283
|
|||||||
Non-operating pension costs
|
689
|
529
|
1,384
|
1,055
|
|||||||
Total principal pension plans costs
|
$
|
1,107
|
$
|
882
|
$
|
2,286
|
$
|
1,780
|
|||
OPERATING EARNINGS (LOSS) AND EPS
|
|||||||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||||||
(Dollars in millions; except per share amounts)
|
2015
|
2014
|
V%
|
2015
|
2014
|
V%
|
|||||||||
Earnings (loss) from continuing operations attributable to GE
|
$
|
2,390
|
$
|
2,884
|
(17)%
|
$
|
(4,944)
|
$
|
5,185
|
U
|
|||||
Adjustment (net of tax): non-operating pension costs
|
448
|
344
|
900
|
686
|
|||||||||||
Operating earnings (loss)
|
2,838
|
3,228
|
(12)%
|
(4,044)
|
5,871
|
U
|
|||||||||
Less GECC earnings (loss) from continuing operations
|
|||||||||||||||
attributable to GE common shareowners
|
218
|
1,002
|
(8,289)
|
2,248
|
|||||||||||
Operating earnings excluding GECC earnings from continuing
|
|||||||||||||||
operations attributable to GE
|
|||||||||||||||
(Industrial operating earnings)
|
$
|
2,620
|
$
|
2,226
|
18%
|
$
|
4,245
|
$
|
3,623
|
17%
|
|||||
Earnings (loss) per share – diluted(a)
|
|||||||||||||||
Continuing earnings (loss) per share
|
$
|
0.24
|
$
|
0.28
|
(14)%
|
$
|
(0.49)
|
$
|
0.51
|
U
|
|||||
Adjustment (net of tax): non-operating pension costs
|
0.04
|
0.03
|
0.09
|
0.07
|
|||||||||||
Operating earnings (loss) per share
|
0.28
|
0.32
|
(13)%
|
(0.40)
|
0.58
|
U
|
|||||||||
Operating earnings (loss) per share attributable
|
|||||||||||||||
to GE Capital (GE Capital operating EPS)
|
0.02
|
0.10
|
(80)%
|
(0.82)
|
0.22
|
U
|
|||||||||
Operating earnings per share attributable
|
|||||||||||||||
to Industrial (Industrial operating EPS)
|
$
|
0.26
|
$
|
0.22
|
18%
|
$
|
0.42
|
$
|
0.36
|
17%
|
|||||
(a)
|
Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.
|
GE INDUSTRIAL OPERATING + VERTICALS EPS
|
|||||||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||||||
(Dollars in millions; except per share amounts)
|
2015
|
2014
|
V%
|
2015
|
2014
|
V%
|
|||||||||
GE Capital operating earnings (loss)
|
$
|
218
|
$
|
1,002
|
(78)%
|
(8,289)
|
2,248
|
U
|
|||||||
Less: Verticals earnings(a)
|
531
|
447
|
877
|
973
|
|||||||||||
GE Capital operating earnings less Verticals earnings(b)
|
$
|
(313)
|
$
|
555
|
(9,166)
|
1,275
|
|||||||||
Industrial operating earnings
|
$
|
2,620
|
$
|
2,226
|
18%
|
$
|
4,245
|
$
|
3,623
|
17%
|
|||||
Verticals earnings(a)
|
531
|
447
|
877
|
973
|
|||||||||||
Industrial operating earnings + Verticals earnings
|
$
|
3,151
|
$
|
2,673
|
5,122
|
4,596
|
|||||||||
Earnings (loss) per share - diluted(c)
|
|||||||||||||||
Industrial operating EPS
|
$
|
0.26
|
$
|
0.22
|
18%
|
$
|
0.42
|
$
|
0.36
|
17%
|
|||||
Verticals earnings per share
|
0.05
|
0.04
|
0.09
|
0.10
|
|||||||||||
Industrial operating + Verticals earnings-per-share
|
$
|
0.31
|
$
|
0.26
|
19%
|
$
|
0.51
|
$
|
0.45
|
13%
|
|||||
(a)
|
Verticals include businesses expected to be retained (GECAS, Energy Financial Services, Healthcare Equipment Finance, Working Capital Solutions, and run-off insurance activities), including allocated corporate costs of $25 million and $58 million after tax in the three months ended June 30, 2015 and 2014, respectively, and $83 million and $116 million after tax in the six months ended June 30, 2015 and 2014, respectively.
|
(b)
|
Includes Consumer after-tax operating earnings (loss) of $459 million and $472 million for the three months ended June 30, 2015 and 2014, respectively, and $(2,316) million and $1,258 million for the six months ended June 30, 2015 and 2014, respectively.
|
(c)
|
Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.
|
INDUSTRIAL SEGMENT ORGANIC REVENUE GROWTH
|
|||||||||||||||
Three months ended June 30
|
Six months ended June 30
|
||||||||||||||
(Dollars in millions)
|
2015
|
2014
|
V%
|
2015
|
2014
|
V%
|
|||||||||
Segment revenues:
|
|||||||||||||||
Power & Water
|
$
|
6,801
|
$
|
6,292
|
8%
|
$
|
12,517
|
$
|
11,801
|
6%
|
|||||
Oil & Gas
|
4,062
|
4,761
|
(15)%
|
8,023
|
9,069
|
(12)%
|
|||||||||
Energy Management
|
1,768
|
1,856
|
(5)%
|
3,453
|
3,528
|
(2)%
|
|||||||||
Aviation
|
6,252
|
6,090
|
3%
|
11,926
|
11,868
|
- %
|
|||||||||
Healthcare
|
4,337
|
4,483
|
(3)%
|
8,412
|
8,681
|
(3)%
|
|||||||||
Transportation
|
1,420
|
1,306
|
9%
|
2,728
|
2,533
|
8%
|
|||||||||
Appliances & Lighting
|
2,235
|
2,120
|
5%
|
4,176
|
3,977
|
5%
|
|||||||||
Industrial segment revenues
|
26,875
|
26,908
|
- %
|
51,235
|
51,457
|
- %
|
|||||||||
Less the effects of:
|
|||||||||||||||
Acquisitions, business dispositions
|
|||||||||||||||
(other than dispositions of businesses acquired
|
|||||||||||||||
for investment) and currency exchange rates
|
(1,211)
|
285
|
U
|
(1,980)
|
487
|
U
|
|||||||||
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)
|
$
|
28,086
|
$
|
26,623
|
5%
|
$
|
53,215
|
$
|
50,970
|
4%
|
|||||
INDUSTRIAL CASH FLOWS FROM OPERATING ACTIVITIES (INDUSTRIAL CFOA)
|
|||||||
Six months ended June 30
|
|||||||
(Dollars in millions)
|
2015
|
2014
|
V%
|
||||
Cash from GE's operating activities (continuing operations), as reported
|
$
|
3,950
|
$
|
3,371
|
17%
|
||
Less dividends from GECC
|
450
|
1,416
|
(68)%
|
||||
Cash from GE's operating activities (continuing operations),
|
|||||||
excluding dividends from GECC (Industrial CFOA)
|
$
|
3,500
|
$
|
1,955
|
79%
|
||
ADJUSTED CORPORATE COSTS (OPERATING)
|
||||||||||||
Three months ended June 30
|
Six months ended June 30
|
|||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
||||||||
Total Corporate Items and Eliminations
|
$
|
(1,186)
|
$
|
(1,474)
|
$
|
(2,878)
|
$
|
(3,016)
|
||||
Less non-operating pension cost
|
(689)
|
(529)
|
(1,384)
|
(1,055)
|
||||||||
Total Corporate costs (operating)
|
$
|
(497)
|
$
|
(945)
|
$
|
(1,494)
|
$
|
(1,961)
|
||||
Less restructuring other charges against gains and settlement
|
100
|
(316)
|
(322)
|
(692)
|
||||||||
Adjusted total corporate costs (operating)
|
$
|
(597)
|
$
|
(629)
|
$
|
(1,172)
|
$
|
(1,269)
|
||||
GE CAPITAL ENDING NET INVESTMENT (ENI), EXCLUDING LIQUIDITY
|
|||||
(In billions)
|
June 30, 2015
|
June 30, 2014(b)
|
|||
Financial Services (GECC) total assets
|
$
|
463.3
|
$
|
509.6
|
|
Less assets of discontinued operations
|
154.9
|
1.5
|
|||
Less non-interest bearing liabilities
|
51.2
|
60.5
|
|||
GE Capital ENI
|
257.2
|
447.6
|
|||
Less liquidity(a)
|
77.9
|
76.3
|
|||
GE Capital ENI, excluding liquidity
|
$
|
179.3
|
$
|
371.3
|
|
(a)
|
Liquidity includes debt obligations of the U.S. Treasury of $3.3 billion June 30, 2015.
|
(b)
|
As originally reported.
|
GECC TIER 1 COMMON RATIO ESTIMATE(a)
|
|||||
(In billions)
|
June 30, 2015
|
June 30, 2014
|
|||
Shareowners' equity(b)
|
$
|
67.0
|
$
|
85.8
|
|
Adjustments:
|
|||||
Preferred equity
|
(4.9)
|
(4.9)
|
|||
Goodwill and other intangible assets
|
(18.5)
|
(26.7)
|
|||
Other additions (deductions)
|
1.1
|
0.3
|
|||
GECC Tier 1 common
|
44.7
|
54.5
|
|||
Estimated risk-weighted assets(c)
|
393.4
|
456.9
|
|||
GECC Tier 1 common ratio estimate
|
11.4%
|
11.9%
|
|||
(a)
|
Includes discontinued operations.
|
(b)
|
Total equity excluding noncontrolling interests.
|
(c)
|
Based on Basel 3 risk-weighted assets estimates.
|