New York
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|
14-0689340
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(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
41 Farnsworth Street, Boston, MA
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02210
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(Address of principal executive offices)
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(Zip Code)
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||
(Registrant’s telephone number, including area code)
(617) 443-3000
_______________________________________________
(Former name, former address and former fiscal year,
if changed since last report)
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Large accelerated filer
þ
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Accelerated filer
¨
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Non-accelerated filer
¨
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Smaller reporting company
¨
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Emerging growth company
¨
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Page
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Non-GAAP Financial Measures
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Risk Factors
|
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Glossary
|
|
FORWARD LOOKING STATEMENTS
|
|
|
•
|
our success in executing and completing, including obtaining regulatory approvals and satisfying other closing conditions for, announced GE Industrial and GE Capital business or asset dispositions or other transactions, including the planned sale of our BioPharma business within our Healthcare segment and plans to exit our equity ownership positions in BHGE and Wabtec, the timing of closing for those transactions and the expected proceeds and benefits to GE;
|
•
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our strategy and plans for the remaining portion of our Healthcare business, including the structure, form, timing and nature of potential actions with respect to that business in the future and the characteristics of the business going forward;
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•
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our capital allocation plans, as such plans may change including with respect to de-leveraging actions, the timing and amount of GE dividends, organic investments, and other priorities;
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•
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further downgrades of our current short- and long-term credit ratings or ratings outlooks, or changes in rating application or methodology, and the related impact on our liquidity, funding profile, costs and competitive position;
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•
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GE’s liquidity and the amount and timing of our GE Industrial cash flows and earnings, which may be impacted by customer, competitive, contractual and other dynamics and conditions;
|
•
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GE Capital's capital and liquidity needs, including in connection with GE Capital’s run-off insurance operations, the amount and timing of required capital contributions, strategic actions that we may pursue, WMC-related claims, liabilities and payments, the impact of conditions in the financial and credit markets on GE Capital's ability to sell financial assets, GE Capital’s leverage and credit ratings, the availability and cost of GE Capital funding and GE Capital's exposure to counterparties;
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•
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customer actions or market developments such as secular and cyclical pressures in our Power business, pricing and other pressures in the renewable energy market, other shifts in the competitive landscape for our products and services, changes in economic conditions, including oil prices, early aircraft retirements, aircraft fleet groundings 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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operational execution by our businesses, including our ability to improve the operations and execution of our Power business, and the continued strength of our Aviation business;
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•
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changes in law, economic and financial conditions, including the effect of enactment of U.S. tax reform or other tax law changes, trade policy and tariffs, interest and exchange rate volatility, commodity and equity prices and the value of financial assets;
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•
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our decisions about investments in new products, services and platforms, and our ability to launch new products in a cost-effective manner;
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•
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our ability to increase margins through implementation of operational changes, restructuring and other cost reduction measures;
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•
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the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of WMC, Alstom, SEC and other investigative and legal proceedings;
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•
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our success in integrating acquired businesses and operating joint ventures, and our ability to realize revenue and cost synergies from announced transactions, acquired businesses and joint ventures;
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•
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the impact of potential product failures and related reputational effects;
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•
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the impact of potential information technology, cybersecurity or data security breaches;
|
•
|
the other factors that are described in "Forward-Looking Statements" in BHGE’s most recent earnings release or SEC filings; 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, 2018 and in this quarterly report on Form 10-Q.
|
MD&A
|
|
|
•
|
General Electric or the Company
– the parent company, General Electric Company.
|
•
|
GE
– the adding together of all affiliates except GE Capital, whose continuing operations are presented on a one-line basis, giving effect to the elimination of transactions among such affiliates. As GE presents the continuing operations of GE Capital on a one-line basis, certain intercompany profits resulting from transactions between GE and GE Capital have been eliminated at the GE level. We present the results of GE in the center column of our consolidated Statements of Earnings (loss), Financial Position and Cash Flows. An example of a GE metric is GE Industrial free cash flows (Non-GAAP).
|
•
|
General Electric Capital Corporation or GECC
– predecessor to GE Capital Global Holdings, LLC.
|
•
|
GE Capital Global Holdings, LLC or GECGH
– the adding together of all affiliates of GECGH, giving effect to the elimination of transactions among such affiliates.
|
•
|
GE Capital or Financial Services
– refers to GECGH and is the adding together of all affiliates of GE Capital giving effect to the elimination of transactions among such affiliates. We present the results of GE Capital in the right-side column of our consolidated Statements of Earnings (Loss), Financial Position and Cash Flows.
|
•
|
GE consolidated
– the adding together of GE and GE Capital, giving effect to the elimination of transactions between the two. We present the results of GE consolidated in the left-side column of our consolidated Statements of Earnings (Loss), Financial Position and Cash Flows.
|
•
|
GE Industrial
– GE excluding the continuing operations of GE Capital. We believe that this provides investors with a view as to the results of our industrial businesses and corporate items. An example of a GE Industrial metric is GE Industrial free cash flows (Non-GAAP).
|
•
|
Industrial segment
– the sum of our five industrial reporting segments, without giving effect to the elimination of transactions among such segments and between these segments and our financial services segment. 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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OUR INDUSTRIAL OPERATING SEGMENTS
|
|
Power
|
Oil & Gas
|
Renewable Energy
|
Healthcare
|
Aviation
|
|
OUR FINANCIAL SERVICES OPERATING SEGMENT
|
Capital
|
MD&A
|
KEY PERFORMANCE INDICATORS
|
|
2019 REVENUES PERFORMANCE
|
Three months ended March 31
|
|
Industrial Segment
|
(2
|
)%
|
Industrial Segment Organic (Non-GAAP)
|
5
|
%
|
GE INDUSTRIAL ORDERS AND BACKLOG
|
Three months ended March 31
|
|||||
(In billions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Equipment
|
$
|
12.3
|
|
$
|
12.2
|
|
Services
|
14.0
|
|
13.7
|
|
||
Total orders
|
$
|
26.2
|
|
$
|
25.9
|
|
|
|
|
||||
Equipment
|
$
|
84.4
|
|
$
|
80.4
|
|
Services
|
289.8
|
|
273.1
|
|
||
Total backlog
|
$
|
374.2
|
|
$
|
353.5
|
|
GE INDUSTRIAL PROFIT MARGIN
|
|
|
||
|
|
|
||
GE Industrial profit margin (GAAP)
|
4.8
|
%
|
2.3
|
%
|
Adjusted GE Industrial profit margin (Non-GAAP)
|
8.8
|
%
|
10.0
|
%
|
EARNINGS
(In billions; per-share amounts in dollars and diluted; attributable to GE common shareowners)
|
|
|
||||
|
|
|
||||
Continuing earnings (loss) (GAAP)
|
$
|
1.0
|
|
$
|
0.3
|
|
Net earnings (loss) (GAAP)
|
3.5
|
|
(1.2
|
)
|
||
Adjusted earnings (loss) (Non-GAAP)
|
1.2
|
|
1.3
|
|
||
|
|
|
||||
Continuing earnings (loss) per share (GAAP)
|
$
|
0.11
|
|
$
|
0.03
|
|
Net earnings (loss) per share (GAAP)
|
0.40
|
|
(0.14
|
)
|
||
Adjusted earnings (loss) per share (Non-GAAP)
|
0.14
|
|
0.15
|
|
GE CFOA AND GE INDUSTRIAL FREE CASH FLOWS
(In billions)
|
|
|
||||
|
|
|
||||
GE CFOA (GAAP)
|
$
|
(0.9
|
)
|
$
|
(1.1
|
)
|
GE Industrial free cash flows (Non-GAAP)
|
(1.8
|
)
|
(1.8
|
)
|
||
Adjusted GE Industrial free cash flows (Non-GAAP)
|
(1.2
|
)
|
(1.8
|
)
|
MD&A
|
CONSOLIDATED RESULTS
|
|
MD&A
|
CONSOLIDATED RESULTS
|
|
REVENUES
|
Three months ended March 31
|
|||||
(In billions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Consolidated revenues
|
$
|
27.3
|
|
$
|
27.8
|
|
|
|
|
||||
Industrial segment revenues
|
25.5
|
|
26.1
|
|
||
Corporate items and Industrial eliminations
|
(0.1
|
)
|
—
|
|
||
GE Industrial revenues
|
$
|
25.4
|
|
$
|
26.0
|
|
|
|
|
||||
Financial services revenues
|
$
|
2.2
|
|
$
|
2.2
|
|
REVENUES COMMENTARY: 2019 – 2018
|
EARNINGS (LOSS) AND EARNINGS (LOSS) PER SHARE
|
Three months ended March 31
|
|||||
(In billions; per-share in dollars and diluted)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Continuing earnings
|
$
|
1.0
|
|
$
|
0.3
|
|
|
|
|
||||
Continuing earnings per share
|
$
|
0.11
|
|
$
|
0.03
|
|
EARNINGS COMMENTARY: 2019 – 2018
|
MD&A
|
CONSOLIDATED RESULTS
|
|
|
March 31, 2019
|
||||||||
(In billions)
|
Equipment
|
|
Services
|
|
Total
|
|
|||
|
|
|
|
||||||
Backlog
|
$
|
84.4
|
|
$
|
289.8
|
|
$
|
374.2
|
|
Adjustments
|
(38.3
|
)
|
(94.6
|
)
|
(132.9
|
)
|
|||
Remaining Performance Obligation
|
$
|
46.1
|
|
$
|
195.2
|
|
$
|
241.4
|
|
MD&A
|
SEGMENT OPERATIONS
|
|
SUMMARY OF OPERATING SEGMENTS
|
Three months ended March 31
|
|||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
V%
|
|
||
|
|
|
|
|||||
Revenues
|
|
|
|
|||||
Power
|
$
|
5,659
|
|
$
|
7,222
|
|
(22)
|
%
|
Renewable Energy
|
1,604
|
|
1,646
|
|
(3)
|
%
|
||
Aviation
|
7,954
|
|
7,112
|
|
12
|
%
|
||
Oil & Gas
|
5,616
|
|
5,385
|
|
4
|
%
|
||
Healthcare
|
4,683
|
|
4,702
|
|
—
|
%
|
||
Total industrial segment revenues
|
25,517
|
|
26,067
|
|
(2)
|
%
|
||
Capital
|
2,227
|
|
2,173
|
|
2
|
%
|
||
Total segment revenues
|
27,743
|
|
28,240
|
|
(2)
|
%
|
||
Corporate items and eliminations(a)
|
(458
|
)
|
(452
|
)
|
(1
|
)%
|
||
Consolidated revenues
|
$
|
27,286
|
|
$
|
27,788
|
|
(2)
|
%
|
|
|
|
|
|||||
Segment profit (loss)
|
|
|
|
|||||
Power
|
$
|
80
|
|
$
|
273
|
|
(71)
|
%
|
Renewable Energy
|
(162
|
)
|
77
|
|
U
|
|
||
Aviation
|
1,660
|
|
1,603
|
|
4
|
%
|
||
Oil & Gas(b)
|
163
|
|
(144
|
)
|
F
|
|
||
Healthcare
|
781
|
|
735
|
|
6
|
%
|
||
Total industrial segment profit
|
2,523
|
|
2,544
|
|
(1)
|
%
|
||
Capital
|
135
|
|
(215
|
)
|
F
|
|
||
Total segment profit (loss)
|
2,658
|
|
2,328
|
|
14
|
%
|
||
Corporate items and eliminations(a)
|
(204
|
)
|
(659
|
)
|
69
|
%
|
||
GE interest and other financial charges
|
(588
|
)
|
(639
|
)
|
8
|
%
|
||
GE non-operating benefit costs
|
(562
|
)
|
(681
|
)
|
17
|
%
|
||
GE benefit (provision) for income taxes
|
(350
|
)
|
(89
|
)
|
U
|
|
||
Earnings (loss) from continuing operations attributable to GE common shareowners
|
954
|
|
261
|
|
F
|
|
||
Earnings (loss) from discontinued operations, net of taxes
|
2,592
|
|
(1,441
|
)
|
F
|
|
||
Less net earnings attributable to noncontrolling interests, discontinued operations
|
(2
|
)
|
4
|
|
U
|
|
||
Earnings (loss) from discontinued operations, net of tax and noncontrolling interest
|
2,595
|
|
(1,444
|
)
|
F
|
|
||
Consolidated net earnings (loss) attributable to the GE common shareowners
|
$
|
3,549
|
|
$
|
(1,184
|
)
|
F
|
|
(a)
|
Effective the first quarter of 2019, Corporate items and eliminations includes the results of our Lighting segment for all periods presented.
|
(b)
|
Oil & Gas segment profit excluding restructuring and other charges* was
$222 million
and
$181 million
for the three months ended March 31, 2019 and 2018, respectively.
|
MD&A
|
SEGMENT OPERATIONS | POWER
|
|
Three months ended March 31
|
|||||
(Dollars in billions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Equipment
|
$
|
2.4
|
|
$
|
3.5
|
|
Services
|
3.2
|
|
3.7
|
|
||
Total segment revenues
|
$
|
5.7
|
|
$
|
7.2
|
|
|
|
|
||||
Segment profit
|
$
|
0.1
|
|
$
|
0.3
|
|
Segment profit margin
|
1.4
|
%
|
3.8
|
%
|
Gas Power
|
$
|
3.3
|
|
$
|
3.5
|
|
Power Portfolio
|
2.4
|
|
3.7
|
|
||
Total sub-segment revenues
|
$
|
5.7
|
|
$
|
7.2
|
|
Equipment
|
$
|
1.9
|
|
$
|
2.3
|
|
Services
|
2.9
|
|
3.2
|
|
||
Total orders
|
$
|
4.8
|
|
$
|
5.6
|
|
|
|
|
||||
Equipment
|
$
|
24.7
|
|
$
|
25.8
|
|
Services
|
68.2
|
|
70.2
|
|
||
Total backlog
|
$
|
92.9
|
|
$
|
95.9
|
|
Gas Turbine unit orders
|
11
|
|
4
|
|
H-Turbine(a) unit orders
|
3
|
|
—
|
|
|
|
|
||
Gas Turbine unit sales
|
7
|
|
12
|
|
H-Turbine(a) unit sales
|
1
|
|
1
|
|
(a) H-Turbines are a subset of Gas Turbines.
|
2019 – 2018 COMMENTARY:
|
MD&A
|
SEGMENT OPERATIONS | RENEWABLE ENERGY
|
|
Three months ended March 31
|
|||||
(Dollars in billions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Equipment
|
$
|
1.1
|
|
$
|
1.2
|
|
Services
|
0.5
|
|
0.4
|
|
||
Total segment revenues
|
$
|
1.6
|
|
$
|
1.6
|
|
|
|
|
||||
Segment profit (loss)
|
$
|
(0.2
|
)
|
$
|
0.1
|
|
Segment profit margin
|
(10.1
|
)%
|
4.7
|
%
|
Onshore Wind
|
$
|
1.4
|
|
$
|
1.3
|
|
Hydro and Offshore Wind
|
0.2
|
|
0.4
|
|
||
Total sub-segment revenues
|
$
|
1.6
|
|
$
|
1.6
|
|
Equipment
|
$
|
2.0
|
|
$
|
2.1
|
|
Services
|
0.4
|
|
0.3
|
|
||
Total orders
|
$
|
2.4
|
|
$
|
2.4
|
|
|
|
|
||||
Equipment
|
$
|
9.6
|
|
$
|
8.5
|
|
Services
|
9.0
|
|
7.5
|
|
||
Total backlog
|
$
|
18.5
|
|
$
|
16.0
|
|
Wind Turbine unit orders
|
970
|
|
936
|
|
Wind Turbine unit sales
|
353
|
|
352
|
|
2019 – 2018 COMMENTARY:
|
MD&A
|
SEGMENT OPERATIONS | AVIATION
|
|
Three months ended March 31
|
|||||
(Dollars in billions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Equipment
|
$
|
3.1
|
|
$
|
2.5
|
|
Services
|
4.8
|
|
4.6
|
|
||
Total segment revenues
|
$
|
8.0
|
|
$
|
7.1
|
|
|
|
|
||||
Segment profit
|
$
|
1.7
|
|
$
|
1.6
|
|
Segment profit margin
|
20.9
|
%
|
22.5
|
%
|
Commercial Engines & Services
|
$
|
5.9
|
|
$
|
5.3
|
|
Military
|
1.0
|
|
1.0
|
|
||
Systems & Other
|
1.0
|
|
0.9
|
|
||
Total sub-segment revenues
|
$
|
8.0
|
|
$
|
7.1
|
|
Equipment
|
$
|
3.2
|
|
$
|
3.2
|
|
Services
|
5.5
|
|
5.0
|
|
||
Total orders
|
$
|
8.7
|
|
$
|
8.1
|
|
|
|
|
||||
Equipment
|
$
|
38.0
|
|
$
|
34.5
|
|
Services
|
185.4
|
|
167.1
|
|
||
Total backlog
|
$
|
223.5
|
|
$
|
201.6
|
|
Commercial Engines unit orders
|
799
|
|
1,175
|
|
||
LEAP Engines(a) unit orders
|
636
|
|
994
|
|
||
Military Engines unit orders
|
26
|
|
251
|
|
||
|
|
|
||||
Commercial Engines unit sales
|
751
|
|
651
|
|
||
LEAP Engines(a) unit sales
|
424
|
|
186
|
|
||
Military Engines unit sales
|
161
|
|
138
|
|
||
Spares Rate(b) unit sales
|
$
|
30.6
|
|
$
|
25.2
|
|
(a) LEAP engines are a subset of commercial engines.
(b) Commercial externally shipped spares and spares used in time & material shop visits in millions of dollars per day.
|
2019 – 2018 COMMENTARY:
|
MD&A
|
SEGMENT OPERATIONS | OIL & GAS
|
|
Three months ended March 31
|
|||||
(Dollars in billions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Equipment
|
$
|
2.3
|
|
$
|
2.2
|
|
Services
|
3.3
|
|
3.2
|
|
||
Total segment revenues
|
$
|
5.6
|
|
$
|
5.4
|
|
|
|
|
||||
Segment profit
|
$
|
0.2
|
|
$
|
(0.1
|
)
|
Segment profit margin
|
2.9
|
%
|
(2.7
|
)%
|
Turbomachinery & Process Solutions (TPS)
|
$
|
1.3
|
|
$
|
1.4
|
|
Oilfield Services (OFS)
|
3.0
|
|
2.7
|
|
||
Oilfield Equipment (OFE)
|
0.7
|
|
0.7
|
|
||
Digital Solutions
|
0.6
|
|
0.6
|
|
||
Total sub-segment revenues
|
$
|
5.6
|
|
$
|
5.4
|
|
Equipment
|
$
|
2.3
|
|
$
|
1.9
|
|
Services
|
3.4
|
|
3.3
|
|
||
Total orders
|
$
|
5.7
|
|
$
|
5.2
|
|
|
|
|
||||
Equipment
|
$
|
5.4
|
|
$
|
5.3
|
|
Services
|
15.5
|
|
16.6
|
|
||
Total backlog
|
$
|
20.9
|
|
$
|
21.8
|
|
2019 – 2018 COMMENTARY:
|
MD&A
|
SEGMENT OPERATIONS | HEALTHCARE
|
|
Three months ended March 31
|
|||||
(Dollars in billions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Equipment
|
$
|
2.7
|
|
$
|
2.6
|
|
Services
|
2.0
|
|
2.1
|
|
||
Total segment revenues
|
$
|
4.7
|
|
$
|
4.7
|
|
|
|
|
||||
Segment profit
|
$
|
0.8
|
|
$
|
0.7
|
|
Segment profit margin
|
16.7
|
%
|
15.6
|
%
|
Healthcare Systems
|
$
|
3.4
|
|
$
|
3.6
|
|
Life Sciences
|
1.3
|
|
1.1
|
|
||
Total sub-segment revenues
|
$
|
4.7
|
|
$
|
4.7
|
|
Equipment
|
$
|
2.9
|
|
$
|
2.7
|
|
Services
|
2.0
|
|
2.1
|
|
||
Total orders
|
$
|
4.9
|
|
$
|
4.7
|
|
|
|
|
||||
Equipment
|
$
|
6.6
|
|
$
|
6.1
|
|
Services
|
11.3
|
|
11.5
|
|
||
Total backlog
|
$
|
17.9
|
|
$
|
17.7
|
|
2019 – 2018 COMMENTARY:
|
MD&A
|
SEGMENT OPERATIONS | CAPITAL
|
|
Three months ended March 31
|
|||||
(In billions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
GE Capital Aviation Services (GECAS)
|
$
|
1.2
|
|
$
|
1.2
|
|
Energy Financial Services
|
—
|
|
—
|
|
||
Industrial Finance and WCS
|
0.3
|
|
0.3
|
|
||
Insurance
|
0.7
|
|
0.7
|
|
||
Other continuing operations
|
—
|
|
—
|
|
||
Total sub-segment revenues
|
$
|
2.2
|
|
$
|
2.2
|
|
GECAS
|
$
|
0.3
|
|
$
|
0.3
|
|
EFS
|
—
|
|
—
|
|
||
Industrial Finance and WCS
|
0.1
|
|
0.1
|
|
||
Insurance
|
—
|
|
—
|
|
||
Other continuing operations(a)
|
(0.3
|
)
|
(0.5
|
)
|
||
Total sub-segment profit
|
$
|
0.1
|
|
$
|
(0.2
|
)
|
|
March 31, 2019
|
December 31, 2018
|
GE Capital debt to equity ratio
|
5.4:1
|
5.7:1
|
(a)
|
Other continuing operations is primarily driven by excess interest costs from debt previously allocated to assets that have been sold as part of the GE Capital Exit Plan (our plan announced in 2015 to reduce the size of our financial services businesses), preferred stock dividend costs and interest costs not allocated to GE Capital segments, which are driven by GE Capital’s interest allocation process. Interest costs are allocated to GE Capital segments based on the tenor of their assets using the market rate at the time of origination. Debt on the GE Capital balance sheet was issued based on the profile of our balance sheet prior to the decision in 2015 to strategically shrink GE Capital. It included long dated maturities that are no longer consistent with a much smaller business. As a result, actual interest expense is higher than interest expense allocated to the remaining GE Capital segments. Preferred stock dividend costs will become a GE obligation in 2021 as the intercompany securities that have a carrying value of $5.3 billion at March 31, 2019 and will convert into common equity. The excess interest costs from debt previously allocated to assets that have been sold are expected to run off by 2020. In addition, we anticipate unallocated interest costs to decline gradually as debt matures and/or is refinanced.
|
MD&A
|
CORPORATE ITEMS AND ELIMINATIONS
|
CORPORATE ITEMS AND ELIMINATIONS
|
|||||||
|
|
|
|
||||
REVENUES AND OPERATING PROFIT (COST)
(a)
|
Three months ended March 31
|
||||||
(In millions)
|
2019
|
|
2018
|
|
|||
|
|
|
|
||||
Revenues
|
|
|
|||||
|
Eliminations and other
|
$
|
(458
|
)
|
$
|
(452
|
)
|
Total Corporate Items and Eliminations
|
$
|
(458
|
)
|
$
|
(452
|
)
|
|
|
|
|
|
||||
Operating profit (cost)
|
|
|
|||||
|
Gains (losses) on disposals(b)
|
$
|
365
|
|
$
|
(67
|
)
|
|
Restructuring and other charges(c)
|
(239
|
)
|
(339
|
)
|
||
|
Unrealized gains (losses)(d)
|
13
|
|
—
|
|
||
|
Adjusted total corporate costs (operating) (Non-GAAP)
|
(343
|
)
|
(253
|
)
|
||
Total Corporate Items and Eliminations (GAAP)
|
$
|
(204
|
)
|
$
|
(659
|
)
|
(a)
|
Effective the first quarter of 2019, Corporate items and eliminations includes the results of our Lighting segment for all periods presented.
|
(b)
|
Includes gains (losses) on disposed or held for sale businesses.
|
(c)
|
Subsequent to the Baker Hughes transaction, restructuring and other charges are included in the determination of segment profit for our Oil & Gas segment.
|
(d)
|
Amount is related to our retained Wabtec equity investment for the first three months of 2019.
|
CORPORATE COSTS (OPERATING)
|
Three months ended March 31
|
|||||
(In millions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Total Corporate Items and Eliminations (GAAP)
|
$
|
(204
|
)
|
$
|
(659
|
)
|
Less: restructuring and other charges
|
(239
|
)
|
(339
|
)
|
||
Less: gains (losses) on disposals
|
365
|
|
(67
|
)
|
||
Less: unrealized gains (losses)
|
13
|
|
—
|
|
||
Adjusted total corporate costs (operating) (Non-GAAP)
|
$
|
(343
|
)
|
$
|
(253
|
)
|
RESTRUCTURING & OTHER CHARGES
|
Three months ended March 31
|
|||||
(In billions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Workforce reductions
|
$
|
0.2
|
|
$
|
0.2
|
|
Plant closures & associated costs and other asset write-downs
|
0.1
|
|
0.2
|
|
||
Acquisition/disposition net charges
|
0.1
|
|
0.2
|
|
||
Other
|
—
|
|
—
|
|
||
Total
|
$
|
0.3
|
|
$
|
0.6
|
|
MD&A
|
CORPORATE ITEMS AND ELIMINATIONS
|
COSTS
|
Three months ended March 31
|
|||||
(In billions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Power
|
$
|
—
|
|
$
|
0.1
|
|
Renewable Energy
|
—
|
|
—
|
|
||
Aviation
|
—
|
|
—
|
|
||
Oil & Gas
|
—
|
|
—
|
|
||
Healthcare
|
0.1
|
|
0.1
|
|
||
Total Segments
|
$
|
0.1
|
|
$
|
0.2
|
|
Corporate Items & Eliminations
|
$
|
0.1
|
|
$
|
0.1
|
|
Total Industrial
|
$
|
0.2
|
|
$
|
0.3
|
|
GAINS (LOSSES)
|
Three months ended March 31
|
|||||
(In billions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Power
|
$
|
—
|
|
$
|
—
|
|
Renewable Energy
|
—
|
|
—
|
|
||
Aviation
|
—
|
|
—
|
|
||
Oil & Gas
|
—
|
|
—
|
|
||
Healthcare
|
—
|
|
—
|
|
||
Total Segments
|
$
|
—
|
|
$
|
—
|
|
Corporate Items & Eliminations(a)
|
$
|
0.4
|
|
$
|
—
|
|
Total Industrial
|
$
|
0.4
|
|
$
|
(0.1
|
)
|
(a)
|
For the three months ended March 31, 2018, there were $0.1 billion of losses not represented in the segment results, primarily within the Power segment and Corporate.
|
MD&A
|
OTHER CONSOLIDATED INFORMATION
|
MD&A
|
OTHER CONSOLIDATED INFORMATION
|
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS
|
Three months ended March 31
|
|||||
(In billions)
|
2019
|
|
2018
|
|
||
Earnings (loss) of discontinued operations, net of taxes
|
$
|
—
|
|
$
|
(1.4
|
)
|
Gain (loss) on disposal, net of taxes
|
$
|
2.6
|
|
$
|
—
|
|
Earnings (loss) from discontinued operations, net of taxes
|
$
|
2.6
|
|
$
|
(1.4
|
)
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(In billions)
|
March 31, 2019
|
|
|
|
March 31, 2019
|
|
||
|
|
|
|
|
||||
GE(a)
|
$
|
20.1
|
|
|
U.S.
|
$
|
18.0
|
|
GE Capital(b)
|
14.8
|
|
|
Non-U.S.
|
16.9
|
|
(a)
|
At March 31, 2019, $3.9 billion of GE cash, cash equivalents and restricted cash 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. Included in this amount was $1.2 billion of BHGE cash and equivalents, which is subject to similar restrictions.
|
(b)
|
Included $3.0 billion which was subject to regulatory restrictions, primarily in insurance entities.
|
GE COMMITTED AND AVAILABLE CREDIT FACILITIES
(In billions)
|
March 31, 2019
|
December 31, 2018
|
||||
|
|
|
||||
Unused back-up revolving credit facility
|
$
|
20.0
|
|
$
|
20.0
|
|
Revolving credit facilities (exceeding one year)
|
18.9
|
|
23.9
|
|
||
Bilateral revolving credit facilities (364-day)
|
3.1
|
|
3.6
|
|
||
Total committed credit facilities
|
$
|
42.0
|
|
$
|
47.5
|
|
Less offset provisions
|
(6.7
|
)
|
(6.7
|
)
|
||
Total net available credit facilities
|
$
|
35.3
|
|
$
|
40.8
|
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
(In billions)
|
GE Commercial Paper
|
Revolving Credit Facilities(a)
|
Total(b)
|
||||||
|
|
|
|
||||||
2019
|
|
|
|
||||||
Average borrowings during the first quarter
|
$
|
3.2
|
|
$
|
1.3
|
|
$
|
4.4
|
|
Maximum borrowings outstanding during the first quarter
|
3.6
|
|
1.5
|
|
4.8
|
|
|||
Ending balance at March 31
|
3.0
|
|
—
|
|
3.0
|
|
|||
|
|
|
|
||||||
2018
|
|
|
|
||||||
Average borrowings during the first quarter
|
$
|
16.6
|
|
$
|
0.4
|
|
$
|
17.0
|
|
Maximum borrowings outstanding during the first quarter
|
19.5
|
|
1.0
|
|
20.0
|
|
|||
Ending balance at March 31
|
3.0
|
|
—
|
|
3.0
|
|
(a)
|
Consisted of activity in the revolving credit facilities exceeding one year and the bilateral revolving credit facilities (364-day). There was no activity in the $20 billion back-up revolving credit facility, which remains unused.
|
(b)
|
Total average and maximum borrowings are calculated based on the daily outstanding balance of the sum of commercial paper and revolving credit facilities.
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
March 31, 2019 (In billions)
|
GE
|
|
GE Capital
|
|
Consolidated(a)
|
|
|||
|
|
|
|
||||||
Total short- and long-term borrowings
|
$
|
67.2
|
|
$
|
41.4
|
|
$
|
107.5
|
|
|
|
|
|
||||||
Debt assumed by GE from GE Capital
|
(35.4
|
)
|
35.4
|
|
—
|
|
|||
Intercompany loans with right of offset
|
13.7
|
|
(13.7
|
)
|
—
|
|
|||
Total intercompany payable (receivable) between GE and GE Capital
|
(21.7
|
)
|
21.7
|
|
—
|
|
|||
|
|
|
|
||||||
Total borrowings adjusted for assumed debt and intercompany loans
|
$
|
45.5
|
|
$
|
63.1
|
|
$
|
107.5
|
|
(a)
|
Included $1.1 billion elimination of other GE borrowings from GE Capital, primarily related to timing of cash cutoff associated with GE receivables monetization programs.
|
|
GE
|
|
|
GE Capital
|
||||||||||
(In billions)
|
March 31, 2019
|
|
December 31,
2018 |
|
|
(In billions)
|
March 31, 2019
|
|
December 31, 2018
|
|
||||
Commercial paper
|
$
|
3.0
|
|
$
|
3.0
|
|
|
Commercial paper
|
$
|
—
|
|
$
|
—
|
|
GE senior notes
|
20.5
|
|
20.5
|
|
|
Senior and subordinated notes
|
38.7
|
|
39.1
|
|
||||
Intercompany loans from GE Capital(a)
|
13.7
|
|
13.7
|
|
|
Senior and subordinated notes assumed by GE
|
35.4
|
|
36.3
|
|
||||
Other GE borrowings
|
1.9
|
|
2.5
|
|
|
Intercompany loans to GE(a)
|
(13.7
|
)
|
(13.7
|
)
|
||||
Total adjusted borrowings excluding BHGE
|
$
|
39.2
|
|
$
|
39.7
|
|
|
Other GE Capital borrowings(b)
|
2.7
|
|
3.9
|
|
||
Total BHGE borrowings
|
6.3
|
|
6.3
|
|
|
|
|
|
||||||
Total GE adjusted borrowings
|
$
|
45.5
|
|
$
|
46.0
|
|
|
Total GE Capital adjusted borrowings
|
$
|
63.1
|
|
$
|
65.5
|
|
(a)
|
The intercompany loans from GE Capital to GE bear the right of offset against amounts owed by GE Capital to GE under the assumed debt agreement and can be prepaid by GE at any time, in whole or in part, without premium or penalty. These loans are priced at market terms and have a collective weighted average interest rate of 3.5% and term of approximately 10.5 years at March 31, 2019.
|
(b)
|
Included $1.3 billion and $1.9 billion at March 31, 2019 and December 31, 2018, respectively, of non-recourse borrowings of consolidated securitization entities where GE Capital has securitized financial assets as an alternative source of funding.
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
MD&A
|
OTHER ITEMS
|
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
GE INDUSTRIAL SEGMENT ORGANIC REVENUES (NON-GAAP)
|
Three months ended March 31
|
|||||||
(In millions)
|
2019
|
|
2018
|
|
V%
|
|||
|
|
|
|
|||||
GE Industrial segment revenues (GAAP)
|
$
|
25,517
|
|
$
|
26,067
|
|
(2
|
)%
|
Adjustments:
|
|
|
|
|||||
Less: acquisitions
|
21
|
|
—
|
|
|
|||
Less: business dispositions (other than dispositions acquired for investment)
|
9
|
|
1,164
|
|
|
|||
Less: currency exchange rate(a)
|
(685
|
)
|
—
|
|
|
|||
GE Industrial segment organic revenues (Non-GAAP)
|
$
|
26,170
|
|
$
|
24,903
|
|
5
|
%
|
(a) Translational foreign exchange
|
|
|
|
|||||
|
|
|
|
|||||
Organic revenues* measure revenues excluding the effects of acquisitions, business dispositions and currency exchange rates. We believe that this measure provides management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and currency exchange, which activities are subject to volatility and can obscure underlying trends. We also believe that presenting organic revenues* separately for our industrial businesses provides management and investors with useful information about the trends of our industrial businesses and enables a more direct comparison to other non-financial businesses and companies. Management recognizes that the term "organic revenues" may be interpreted differently by other companies and under different circumstances. Although this may have an effect on comparability of absolute percentage growth from company to company, we believe that these measures are useful in assessing trends of the respective businesses or companies and may therefore be a useful tool in assessing period-to-period performance trends.
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
ADJUSTED EARNINGS (LOSS) PER SHARE (EPS) (NON-GAAP)
|
Three months ended March 31
|
|||||||
|
2019
|
|
2018
|
|
V%
|
|
||
|
|
|
|
|||||
Consolidated EPS from continuing operations attributable to GE common shareowners (GAAP)
|
$
|
0.11
|
|
$
|
0.03
|
|
F
|
|
Less: GE Capital EPS from continuing operations attributable to GE common shareowners (GAAP)
|
0.02
|
|
(0.02
|
)
|
|
|||
GE Industrial EPS (Non-GAAP)
|
$
|
0.09
|
|
$
|
0.05
|
|
80
|
%
|
|
|
|
|
|||||
Non-operating benefits costs (pre-tax) (GAAP)
|
(0.06
|
)
|
(0.08
|
)
|
|
|||
Tax effect on non-operating benefit costs
|
0.01
|
|
0.02
|
|
|
|||
Less: non-operating benefit costs (net of tax)
|
(0.05
|
)
|
(0.06
|
)
|
|
|||
Gains (losses) and impairments for disposed or held for sale businesses (pre-tax)
|
0.04
|
|
(0.01
|
)
|
|
|||
Tax effect on gains (losses) and impairments for disposed or held for sale businesses(a)
|
—
|
|
—
|
|
|
|||
Less: gains (losses) and impairments for disposed or held for sale businesses (net of tax)
|
0.04
|
|
—
|
|
|
|||
Restructuring & other (pre-tax)
|
(0.03
|
)
|
(0.06
|
)
|
|
|||
Tax effect on restructuring & other(a)
|
0.01
|
|
0.02
|
|
|
|||
Less: restructuring & other (net of tax)
|
(0.03
|
)
|
(0.05
|
)
|
|
|||
Unrealized gains (losses)
|
—
|
|
—
|
|
|
|||
Tax on unrealized gains (losses)(a)
|
—
|
|
—
|
|
|
|||
Less: unrealized gains (losses)
|
—
|
|
—
|
|
|
|||
Less: GE Industrial U.S. tax reform enactment adjustment
|
(0.01
|
)
|
—
|
|
|
|||
Adjusted GE Industrial EPS (Non-GAAP)
|
$
|
0.13
|
|
$
|
0.17
|
|
(24
|
)%
|
|
|
|
|
|||||
GE Capital EPS from continuing operations attributable to GE common shareowners (GAAP)
|
0.02
|
|
(0.02
|
)
|
F
|
|
||
Less: GE Capital U.S. tax reform enactment adjustment
|
0.01
|
|
(0.01
|
)
|
|
|||
Adjusted GE Capital EPS (Non-GAAP)
|
$
|
—
|
|
$
|
(0.02
|
)
|
F
|
|
|
|
|
|
|||||
Adjusted GE Industrial EPS (Non-GAAP)
|
$
|
0.13
|
|
$
|
0.17
|
|
(24
|
)%
|
Add: Adjusted GE Capital EPS (Non-GAAP)
|
—
|
|
(0.02
|
)
|
F
|
|
||
Adjusted EPS (Non-GAAP)(b)
|
$
|
0.14
|
|
$
|
0.15
|
|
(7
|
)%
|
|
|
|
|
|||||
(a) The tax effect presented includes both the rate for the relevant item as well as other direct and incremental tax charges.
|
||||||||
(b) Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.
|
||||||||
Adjusted EPS* excludes non-operating benefit costs, gains (losses) and impairments for disposed or held for sale businesses, restructuring & other, unrealized gains (losses), after-tax, excluding the effects of U.S. tax reform enactment adjustment. The service cost of our pension and other benefit plans are included in adjusted earnings*, which represents the ongoing cost of providing pension benefits to our employees. The components of non-operating benefit costs are mainly driven by capital allocation decisions and market performance, and we manage these separately from the operational performance of our businesses. Gains and restructuring and other items are impacted by the timing and magnitude of gains associated with dispositions, and the timing and magnitude of costs associated with restructuring activities. We believe that the retained costs in Adjusted EPS* provides management and investors a useful measure to evaluate the performance of the total company, and increases period-to-period comparability. We also use Adjusted EPS* as a performance metric at the company level for our annual executive incentive plan for 2019. We believe that presenting Adjusted Industrial EPS* separately for our financial services businesses also provides management and investors with useful information about the relative size of our industrial and financial services businesses in relation to the total company.
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
ADJUSTED GE INDUSTRIAL PROFIT AND PROFIT MARGIN (EXCLUDING CERTAIN ITEMS) (NON-GAAP)
|
Three months ended March 31
|
|||||
(In millions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
GE total revenues (GAAP)
|
$
|
25,409
|
|
$
|
26,022
|
|
|
|
|
||||
Costs
|
|
|
||||
GE total costs and expenses (GAAP)
|
$
|
25,065
|
|
$
|
25,615
|
|
Less: GE interest and other financial charges
|
588
|
|
639
|
|
||
Less: non-operating benefit costs
|
562
|
|
681
|
|
||
Less: restructuring & other
|
308
|
|
660
|
|
||
Add: noncontrolling interests
|
59
|
|
34
|
|
||
Adjusted GE Industrial costs (Non-GAAP)
|
$
|
23,667
|
|
$
|
23,669
|
|
|
|
|
||||
Other Income
|
|
|
||||
GE other income (GAAP)
|
$
|
884
|
|
$
|
192
|
|
Less: unrealized gains (losses)
|
13
|
|
—
|
|
||
Less: restructuring & other
|
9
|
|
(3
|
)
|
||
Less: gains (losses) and impairments for disposed or held for sale businesses
|
365
|
|
(67
|
)
|
||
Adjusted GE other income (Non-GAAP)
|
$
|
496
|
|
$
|
262
|
|
|
|
|
||||
GE Industrial profit (GAAP)
|
$
|
1,228
|
|
$
|
599
|
|
GE Industrial profit margin (GAAP)
|
4.8
|
%
|
2.3
|
%
|
||
|
|
|
||||
Adjusted GE Industrial profit (Non-GAAP)
|
$
|
2,239
|
|
$
|
2,615
|
|
Adjusted GE Industrial profit margin (Non-GAAP)
|
8.8
|
%
|
10.0
|
%
|
||
|
|
|
||||
We have presented our Adjusted GE Industrial profit* and profit margin* excluding interest and other financial charges, non-operating benefit costs, restructuring & other, non-controlling interests, unrealized gains (loss) and impairments for disposed or held for sale businesses. We believe that GE Industrial profit and profit margins adjusted for these items are meaningful measures because they increase the comparability of period-to-period results.
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
GE EFFECTIVE TAX RATES, EXCLUDING GE CAPITAL EARNINGS (NON-GAAP)
|
Three months ended March 31
|
|||||
(In millions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
GE earnings (loss) from continuing operations before income taxes (GAAP)
|
$
|
1,363
|
|
$
|
383
|
|
Less: GE Capital earnings (loss) from continuing operations
|
135
|
|
(215
|
)
|
||
GE Industrial earnings (loss) from continuing operations before income taxes (Non-GAAP)
|
1,228
|
|
599
|
|
||
|
|
|
||||
GE provision (benefit) for income taxes (GAAP)
|
$
|
350
|
|
$
|
89
|
|
GE effective tax rate, excluding GE Capital earnings (Non-GAAP)
|
29
|
%
|
15
|
%
|
||
|
|
|
||||
We believe that the GE effective tax rate is best analyzed in relation to GE earnings before income taxes excluding the GE Capital net earnings* from continuing operations, as GE tax expense does not include taxes on GE Capital earnings. Management believes that in addition to the Consolidated and GE Capital tax rates shown in Note 14 to the consolidated financial statements of the Annual Report on Form 10-K for the year ended December 31, 2018, this supplemental measure provides investors with useful information as it presents the GE effective tax rate that can be used in comparing the GE results to other non-financial services businesses.
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
GE INDUSTRIAL NET DEBT (NON-GAAP)
(In millions)
|
March 31, 2019
|
|
December 31, 2018
|
|
||
Total GE short- and long-term borrowings (GAAP)
|
$
|
67,163
|
|
$
|
68,543
|
|
Less: GE Capital short- and long-term debt assumed by GE
|
35,433
|
|
36,262
|
|
||
Less: BHGE total borrowings
|
6,315
|
|
6,303
|
|
||
Add: intercompany loans from GE Capital
|
13,749
|
|
13,749
|
|
||
Total adjusted GE borrowings
|
39,164
|
|
39,727
|
|
||
Total pension and retiree benefit plan liabilities (pre-tax)(a)
|
27,159
|
|
27,159
|
|
||
Less: taxes at 21%
|
5,703
|
|
5,703
|
|
||
Total pension and retiree benefit plan liabilities (net of tax)
|
21,456
|
|
21,456
|
|
||
GE operating lease liabilities(b)
|
4,467
|
|
5,550
|
|
||
Less: BHGE operating lease liabilities
|
869
|
|
1,682
|
|
||
Total operating lease liabilities excluding BHGE
|
3,598
|
|
3,868
|
|
||
GE preferred stock
|
5,613
|
|
5,573
|
|
||
Less: 50% of GE preferred stock
|
2,806
|
|
2,787
|
|
||
50% of preferred stock
|
2,806
|
|
2,787
|
|
||
Deduction for total GE cash, cash equivalents and restricted cash
|
(20,069
|
)
|
(20,355
|
)
|
||
Less: BHGE cash, cash equivalents and restricted cash
|
(3,073
|
)
|
(3,723
|
)
|
||
Deduction for total GE cash, cash equivalents and restricted cash, excluding BHGE
|
(16,996
|
)
|
(16,632
|
)
|
||
Less: 25% of GE cash, cash equivalents and restricted cash, excluding BHGE
|
(4,249
|
)
|
(4,158
|
)
|
||
Deduction for 75% of GE cash, cash equivalents and restricted cash, excluding BHGE
|
(12,747
|
)
|
(12,474
|
)
|
||
Total GE Industrial net debt (Non-GAAP)
|
$
|
54,276
|
|
$
|
55,363
|
|
|
|
|
||||
(a) Represents the total underfunded status of Principal pension plans ($18,491 million), Other pension plans ($3,877 million), and Retiree health and life benefit plans ($4,791 million) at December 31, 2018. The funded status of our benefit plans is updated annually in the fourth quarter.
|
||||||
(b) Operating lease liabilities at December 31, 2018 were derived using the former rating agency methodology of multiplying annual rental expense by 3. With the January 1, 2019 adoption of ASU No. 2016-02, Leases, operating lease liabilities are now presented on the Statement of Financial Position.
|
||||||
|
||||||
In this document we use GE Industrial net debt*, which is calculated based on rating agency methodologies. There is significant uncertainty around the timing and events that could give rise to items included in the determination of this metric, including the timing of pension funding, proceeds from dispositions, and the impact of interest rates on our pension assets and liabilities. We are including the calculation of GE industrial net debt* to provide investors more clarity regarding how the credit rating agencies measure GE Industrial leverage.
|
OTHER
|
|
|
Period
|
Total number
of shares
purchased
|
Average
price paid
per share
|
Total number
of shares
purchased
as part of
our share
repurchase
program(a)
|
Approximate
dollar value
of shares that
may yet be
purchased
under our
share
repurchase
program(a)
|
||||||
(Shares in thousands)
|
|
|
|
|
||||||
|
|
|
|
|
||||||
2019
|
|
|
|
|
||||||
January
|
837
|
|
$
|
8.78
|
|
837
|
|
|
||
February
|
215
|
|
10.38
|
|
215
|
|
|
|||
March
|
—
|
|
—
|
|
—
|
|
|
|||
Total
|
1,052
|
|
$
|
9.11
|
|
1,052
|
|
$
|
—
|
|
(a)
|
Shares were repurchased through the GE Stock Direct program, our retail stock plan, up through February 8, 2019. No repurchases by GE were conducted under the program subsequent to that date, and no further repurchases by GE have been authorized.
|
RISK FACTORS
|
|
|
LEGAL PROCEEDINGS
|
|
|
LEGAL PROCEEDINGS
|
|
|
FINANCIAL STATEMENTS
|
|
|
|
1
|
||
|
2
|
||
|
3
|
||
|
4
|
Current Receivables
|
|
|
5
|
||
|
6
|
||
|
7
|
Property, Plant and Equipment
and Operating Lease Right-of-use Assets and Liabilities
|
|
|
8
|
Goodwill and Other Intangible Assets
|
|
|
9
|
Revenues
|
|
|
10
|
Contract & Other Deferred Assets and Progress Collections & Deferred Income
|
|
|
11
|
||
|
12
|
Insurance Liabilities and Annuity Benefits
|
|
|
13
|
||
|
14
|
||
|
15
|
||
|
16
|
||
|
17
|
||
|
18
|
||
|
19
|
Commitments, Guarantees, Product Warranties and Other Loss Contingencies
|
|
|
20
|
Cash Flows Information
|
|
|
21
|
||
|
22
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF EARNINGS (LOSS)
|
Three months ended March 31
|
|||||
(UNAUDITED)
|
General Electric Company
and consolidated affiliates
|
|||||
(In millions; per-share amounts in dollars)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Revenues
|
|
|
||||
Sales of goods
|
$
|
16,198
|
|
$
|
16,742
|
|
Sales of services
|
9,144
|
|
9,260
|
|
||
GE Capital revenues from services
|
1,944
|
|
1,786
|
|
||
Total revenues (Note 9)
|
27,286
|
|
27,788
|
|
||
|
|
|
||||
Costs and expenses
|
|
|
||||
Cost of goods sold
|
13,551
|
|
13,756
|
|
||
Cost of services sold
|
6,802
|
|
7,155
|
|
||
Selling, general and administrative expenses
|
4,146
|
|
4,088
|
|
||
Interest and other financial charges
|
1,133
|
|
1,282
|
|
||
Insurance losses and annuity benefits
|
611
|
|
630
|
|
||
Non-operating benefit costs
|
566
|
|
685
|
|
||
Other costs and expenses
|
81
|
|
121
|
|
||
Total costs and expenses
|
26,889
|
|
27,716
|
|
||
|
|
|
||||
Other income
|
878
|
|
204
|
|
||
GE Capital earnings (loss) from continuing operations
|
—
|
|
—
|
|
||
|
|
|
||||
Earnings (loss) from continuing operations before income taxes
|
1,275
|
|
277
|
|
||
Benefit (provision) for income taxes
|
(222
|
)
|
50
|
|
||
Earnings (loss) from continuing operations
|
1,053
|
|
328
|
|
||
Earnings (loss) from discontinued operations, net of taxes (Note 2)
|
2,592
|
|
(1,441
|
)
|
||
Net earnings (loss)
|
3,645
|
|
(1,113
|
)
|
||
Less net earnings (loss) attributable to noncontrolling interests
|
57
|
|
34
|
|
||
Net earnings (loss) attributable to the Company
|
3,588
|
|
(1,147
|
)
|
||
Preferred stock dividends
|
(40
|
)
|
(37
|
)
|
||
Net earnings (loss) attributable to GE common shareowners
|
$
|
3,549
|
|
$
|
(1,184
|
)
|
|
|
|
||||
Amounts attributable to GE common shareowners
|
|
|
||||
Earnings (loss) from continuing operations
|
$
|
1,053
|
|
$
|
328
|
|
Less net earnings (loss) attributable to noncontrolling interests,
|
|
|
||||
continuing operations
|
59
|
|
30
|
|
||
Earnings (loss) from continuing operations attributable to the Company
|
994
|
|
297
|
|
||
Preferred stock dividends
|
(40
|
)
|
(37
|
)
|
||
Earnings (loss) from continuing operations attributable
|
|
|
||||
to GE common shareowners
|
954
|
|
261
|
|
||
Earnings (loss) from discontinued operations, net of taxes
|
2,592
|
|
(1,441
|
)
|
||
Less net earnings (loss) attributable to
|
|
|
||||
noncontrolling interests, discontinued operations
|
(2
|
)
|
4
|
|
||
Net earnings (loss) attributable to GE common shareowners
|
$
|
3,549
|
|
$
|
(1,184
|
)
|
|
|
|
||||
Per-share amounts (Note 16)
|
|
|
||||
Earnings (loss) from continuing operations
|
|
|
||||
Diluted earnings (loss) per share
|
$
|
0.11
|
|
$
|
0.03
|
|
Basic earnings (loss) per share
|
$
|
0.11
|
|
$
|
0.03
|
|
|
|
|
||||
Net earnings (loss)
|
|
|
||||
Diluted earnings (loss) per share
|
$
|
0.40
|
|
$
|
(0.14
|
)
|
Basic earnings (loss) per share
|
$
|
0.41
|
|
$
|
(0.14
|
)
|
|
|
|
||||
Dividends declared per common share
|
$
|
0.01
|
|
$
|
0.12
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF EARNINGS (LOSS) (CONTINUED)
|
Three months ended March 31
|
||||||||||||
(UNAUDITED)
|
GE(a)
|
|
Financial Services (GE Capital)
|
||||||||||
(In millions; per-share amounts in dollars)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||
|
|
|
|
|
|
||||||||
Revenues
|
|
|
|
|
|
||||||||
Sales of goods
|
$
|
16,264
|
|
$
|
16,733
|
|
|
$
|
16
|
|
$
|
32
|
|
Sales of services
|
9,145
|
|
9,288
|
|
|
—
|
|
—
|
|
||||
GE Capital revenues from services
|
—
|
|
—
|
|
|
2,210
|
|
2,141
|
|
||||
Total revenues
|
25,409
|
|
26,022
|
|
|
2,227
|
|
2,173
|
|
||||
|
|
|
|
|
|
||||||||
Costs and expenses
|
|
|
|
|
|
||||||||
Cost of goods sold
|
13,625
|
|
13,748
|
|
|
13
|
|
25
|
|
||||
Cost of services sold
|
6,351
|
|
6,665
|
|
|
486
|
|
525
|
|
||||
Selling, general and administrative expenses
|
3,939
|
|
3,883
|
|
|
267
|
|
343
|
|
||||
Interest and other financial charges
|
588
|
|
639
|
|
|
677
|
|
819
|
|
||||
Insurance losses and annuity benefits
|
—
|
|
—
|
|
|
633
|
|
645
|
|
||||
Non-operating benefit costs
|
562
|
|
681
|
|
|
5
|
|
4
|
|
||||
Other costs and expenses
|
—
|
|
—
|
|
|
99
|
|
133
|
|
||||
Total costs and expenses
|
25,065
|
|
25,615
|
|
|
2,180
|
|
2,495
|
|
||||
|
|
|
|
|
|
||||||||
Other income
|
884
|
|
192
|
|
|
—
|
|
—
|
|
||||
GE Capital earnings (loss) from continuing operations
|
135
|
|
(215
|
)
|
|
—
|
|
—
|
|
||||
|
|
|
|
|
|
||||||||
Earnings (loss) from continuing operations before income taxes
|
1,363
|
|
383
|
|
|
47
|
|
(321
|
)
|
||||
Benefit (provision) for income taxes
|
(350
|
)
|
(89
|
)
|
|
128
|
|
139
|
|
||||
Earnings (loss) from continuing operations
|
1,013
|
|
295
|
|
|
175
|
|
(182
|
)
|
||||
Earnings (loss) from discontinued operations, net of taxes (Note 2)
|
2,592
|
|
(1,441
|
)
|
|
35
|
|
(1,553
|
)
|
||||
Net earnings (loss)
|
3,606
|
|
(1,146
|
)
|
|
210
|
|
(1,735
|
)
|
||||
Less net earnings (loss) attributable to noncontrolling interests
|
57
|
|
38
|
|
|
—
|
|
(4
|
)
|
||||
Net earnings (loss) attributable to the Company
|
3,549
|
|
(1,184
|
)
|
|
210
|
|
(1,731
|
)
|
||||
Preferred stock dividends
|
—
|
|
—
|
|
|
(40
|
)
|
(37
|
)
|
||||
Net earnings (loss) attributable to GE common shareowners
|
$
|
3,549
|
|
$
|
(1,184
|
)
|
|
$
|
171
|
|
$
|
(1,768
|
)
|
|
|
|
|
|
|
||||||||
Amounts attributable to GE common shareowners:
|
|
|
|
|
|
||||||||
Earnings (loss) from continuing operations
|
$
|
1,013
|
|
$
|
295
|
|
|
$
|
175
|
|
$
|
(182
|
)
|
Less net earnings (loss) attributable to noncontrolling interests,
|
|
|
|
|
|
||||||||
continuing operations
|
59
|
|
34
|
|
|
—
|
|
(4
|
)
|
||||
Earnings (loss) from continuing operations attributable to the Company
|
954
|
|
261
|
|
|
175
|
|
(179
|
)
|
||||
Preferred stock dividends
|
—
|
|
—
|
|
|
(40
|
)
|
(37
|
)
|
||||
Earnings (loss) from continuing operations attributable
|
|
|
|
|
|
||||||||
to GE common shareowners
|
954
|
|
261
|
|
|
135
|
|
(215
|
)
|
||||
Earnings (loss) from discontinued operations, net of taxes
|
2,592
|
|
(1,441
|
)
|
|
35
|
|
(1,553
|
)
|
||||
Less net earnings (loss) attributable to
|
|
|
|
|
|
||||||||
noncontrolling interests, discontinued operations
|
(2
|
)
|
4
|
|
|
—
|
|
—
|
|
||||
Net earnings (loss) attributable to GE common shareowners
|
$
|
3,549
|
|
$
|
(1,184
|
)
|
|
$
|
171
|
|
$
|
(1,768
|
)
|
(a)
|
Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1.
|
FINANCIAL STATEMENTS
|
|
|
GENERAL ELECTRIC COMPANY AND CONSOLIDATED AFFILIATES
|
|
|
||||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
|
|
|
||||
(UNAUDITED)
|
Three months ended March 31
|
|||||
(In millions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Net earnings (loss)
|
$
|
3,645
|
|
$
|
(1,113
|
)
|
Less net earnings (loss) attributable to noncontrolling interests
|
57
|
|
34
|
|
||
Net earnings (loss) attributable to the Company
|
$
|
3,588
|
|
$
|
(1,147
|
)
|
|
|
|
||||
Other comprehensive income (loss)
|
|
|
||||
Investment securities
|
$
|
24
|
|
$
|
99
|
|
Currency translation adjustments
|
423
|
|
830
|
|
||
Cash flow hedges
|
38
|
|
55
|
|
||
Benefit plans
|
545
|
|
717
|
|
||
Other comprehensive income (loss)
|
1,031
|
|
1,702
|
|
||
Less other comprehensive income (loss) attributable to noncontrolling interests
|
101
|
|
160
|
|
||
Other comprehensive income (loss) attributable to the Company
|
$
|
930
|
|
$
|
1,542
|
|
|
|
|
||||
Comprehensive income (loss)
|
$
|
4,675
|
|
$
|
588
|
|
Less comprehensive income (loss) attributable to noncontrolling interests
|
158
|
|
194
|
|
||
Comprehensive income (loss) attributable to the Company
|
$
|
4,517
|
|
$
|
395
|
|
FINANCIAL STATEMENTS
|
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF FINANCIAL POSITION
|
General Electric Company
and consolidated affiliates |
|||||
(In millions, except share amounts)
|
March 31, 2019
|
|
December 31, 2018
|
|
||
|
(Unaudited)
|
|
|
|||
Assets
|
|
|
||||
Cash, cash equivalents and restricted cash(a)
|
$
|
34,905
|
|
$
|
34,847
|
|
Investment securities (Note 3)
|
38,275
|
|
33,835
|
|
||
Current receivables (Note 4)
|
19,518
|
|
19,484
|
|
||
Inventories (Note 5)
|
19,419
|
|
18,439
|
|
||
Financing receivables – net (Note 6)
|
7,111
|
|
7,699
|
|
||
Other GE Capital receivables
|
6,794
|
|
6,674
|
|
||
Property, plant and equipment – net (Note 7)
|
50,265
|
|
49,839
|
|
||
Operating lease right-of-use assets (Note 7)
|
4,016
|
|
—
|
|
||
Receivable from GE Capital
|
—
|
|
—
|
|
||
Investment in GE Capital
|
—
|
|
—
|
|
||
Goodwill (Note 8)
|
53,194
|
|
58,730
|
|
||
Other intangible assets – net (Note 8)
|
17,053
|
|
17,897
|
|
||
Contract and other deferred assets (Note 10)
|
19,371
|
|
19,231
|
|
||
All other assets
|
19,381
|
|
19,893
|
|
||
Deferred income taxes (Note 14)
|
11,413
|
|
12,129
|
|
||
Assets of businesses held for sale (Note 2)
|
9,910
|
|
1,630
|
|
||
Assets of discontinued operations (Note 2)
|
4,459
|
|
9,257
|
|
||
Total assets(b)
|
$
|
315,082
|
|
$
|
309,585
|
|
|
|
|
||||
Liabilities and equity
|
|
|
||||
Short-term borrowings (Note 11)
|
$
|
15,953
|
|
$
|
12,821
|
|
Short-term borrowings assumed by GE (Note 11)
|
—
|
|
—
|
|
||
Accounts payable, principally trade accounts
|
17,059
|
|
16,722
|
|
||
Progress collections and deferred income (Note 10)
|
20,225
|
|
20,577
|
|
||
Dividends payable
|
94
|
|
95
|
|
||
Other GE current liabilities
|
17,881
|
|
15,770
|
|
||
Non-recourse borrowings of consolidated securitization entities (Note 11)
|
1,350
|
|
1,875
|
|
||
Long-term borrowings (Note 11)
|
90,223
|
|
95,234
|
|
||
Long-term borrowings assumed by GE (Note 11)
|
—
|
|
—
|
|
||
Operating lease liabilities (Note 7)
|
4,180
|
|
—
|
|
||
Insurance liabilities and annuity benefits (Note 12)
|
36,769
|
|
35,562
|
|
||
Non-current compensation and benefits
|
32,864
|
|
33,775
|
|
||
All other liabilities
|
18,980
|
|
20,837
|
|
||
Liabilities of businesses held for sale (Note 2)
|
1,801
|
|
708
|
|
||
Liabilities of discontinued operations (Note 2)
|
1,643
|
|
3,747
|
|
||
Total liabilities(b)
|
259,020
|
|
257,722
|
|
||
|
|
|
||||
Redeemable noncontrolling interests (Note 15)
|
416
|
|
382
|
|
||
|
|
|
||||
Preferred stock (5,939,875 shares outstanding at both March 31, 2019
and December 31, 2018) |
6
|
|
6
|
|
||
Common stock (8,720,808,000 and 8,702,227,000 shares outstanding
at March 31, 2019 and December 31, 2018, respectively) |
702
|
|
702
|
|
||
Accumulated other comprehensive income (loss) – net attributable to GE(c)
|
|
|
||||
Investment securities
|
(16
|
)
|
(39
|
)
|
||
Currency translation adjustments
|
(5,810
|
)
|
(6,134
|
)
|
||
Cash flow hedges
|
49
|
|
13
|
|
||
Benefit plans
|
(7,708
|
)
|
(8,254
|
)
|
||
Other capital
|
34,345
|
|
35,504
|
|
||
Retained earnings
|
96,921
|
|
93,109
|
|
||
Less common stock held in treasury
|
(83,328
|
)
|
(83,925
|
)
|
||
Total GE shareowners’ equity
|
35,161
|
|
30,981
|
|
||
Noncontrolling interests(d) (Note 15)
|
20,485
|
|
20,500
|
|
||
Total equity (Note 15)
|
55,646
|
|
51,481
|
|
||
Total liabilities, redeemable noncontrolling interests and equity
|
$
|
315,082
|
|
$
|
309,585
|
|
(a)
|
Includes restricted cash of
$507 million
and
$492 million
at
March 31, 2019
and
December 31, 2018
, respectively.
|
(b)
|
Our consolidated assets at
March 31, 2019
included total assets of
$4,517 million
of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs. These assets included current receivables and net financing receivables of
$2,851 million
within continuing operations and assets of discontinued operations of
$109 million
. Our consolidated liabilities at
March 31, 2019
included liabilities of certain VIEs for which the VIE creditors do not have recourse to GE. These liabilities included non-recourse borrowings of consolidated securitization entities (CSEs) of
$(1,350) million
within continuing operations. See Note 18.
|
(c)
|
The sum of accumulated other comprehensive income (loss) (AOCI) attributable to the Company was
$(13,485) million
and
$(14,414) million
at
March 31, 2019
and
December 31, 2018
, respectively.
|
(d)
|
Included AOCI attributable to noncontrolling interests of
$(350) million
and
$(451) million
at
March 31, 2019
and
December 31, 2018
, respectively.
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF FINANCIAL POSITION (CONTINUED)
|
GE(a)
|
|
Financial Services (GE Capital)
|
||||||||||
(In millions, except share amounts)
|
March 31,
2019 |
|
December 31, 2018
|
|
|
March 31,
2019 |
|
December 31, 2018
|
|
||||
|
(Unaudited)
|
|
|
(Unaudited)
|
|
||||||||
Assets
|
|
|
|
|
|
||||||||
Cash, cash equivalents and restricted cash(b)
|
$
|
20,069
|
|
$
|
20,355
|
|
|
$
|
14,836
|
|
$
|
14,492
|
|
Investment securities (Note 3)
|
4,004
|
|
514
|
|
|
34,345
|
|
33,393
|
|
||||
Current receivables (Note 4)
|
15,936
|
|
15,103
|
|
|
—
|
|
—
|
|
||||
Inventories (Note 5)
|
19,370
|
|
18,389
|
|
|
49
|
|
50
|
|
||||
Financing receivables - net (Note 6)
|
—
|
|
—
|
|
|
12,007
|
|
13,628
|
|
||||
Other GE Capital receivables
|
—
|
|
—
|
|
|
14,063
|
|
15,361
|
|
||||
Property, plant and equipment – net (Note 7)
|
20,640
|
|
21,056
|
|
|
30,000
|
|
29,510
|
|
||||
Operating lease right-of-use assets (Note 7)
|
4,291
|
|
—
|
|
|
271
|
|
—
|
|
||||
Receivable from GE Capital(c)(d)
|
21,684
|
|
22,513
|
|
|
—
|
|
—
|
|
||||
Investment in GE Capital
|
11,744
|
|
11,412
|
|
|
—
|
|
—
|
|
||||
Goodwill (Note 8)
|
52,316
|
|
57,826
|
|
|
878
|
|
904
|
|
||||
Other intangible assets – net (Note 8)
|
16,833
|
|
17,661
|
|
|
220
|
|
236
|
|
||||
Contract and other deferred assets (Note 10)
|
19,371
|
|
19,231
|
|
|
—
|
|
—
|
|
||||
All other assets
|
10,385
|
|
10,164
|
|
|
9,315
|
|
9,819
|
|
||||
Deferred income taxes (Note 14)
|
9,466
|
|
10,189
|
|
|
1,942
|
|
1,936
|
|
||||
Assets of businesses held for sale (Note 2)
|
9,602
|
|
1,525
|
|
|
—
|
|
—
|
|
||||
Assets of discontinued operations (Note 2)
|
187
|
|
4,573
|
|
|
4,272
|
|
4,610
|
|
||||
Total assets
|
$
|
235,897
|
|
$
|
230,510
|
|
|
$
|
122,198
|
|
$
|
123,939
|
|
|
|
|
|
|
|
||||||||
Liabilities and equity
|
|
|
|
|
|
||||||||
Short-term borrowings(c) (Note 11)
|
$
|
4,632
|
|
$
|
5,192
|
|
|
$
|
5,847
|
|
$
|
4,999
|
|
Short-term borrowings assumed by GE(c) (Note 11)
|
6,470
|
|
4,207
|
|
|
2,436
|
|
2,684
|
|
||||
Accounts payable, principally trade accounts
|
21,018
|
|
22,085
|
|
|
2,086
|
|
1,612
|
|
||||
Progress collections and deferred income (Note 10)
|
20,469
|
|
20,833
|
|
|
—
|
|
—
|
|
||||
Dividends payable
|
94
|
|
95
|
|
|
—
|
|
—
|
|
||||
Other GE current liabilities
|
17,881
|
|
15,770
|
|
|
—
|
|
—
|
|
||||
Non-recourse borrowings of consolidated securitization entities (Note 11)
|
—
|
|
—
|
|
|
1,350
|
|
1,875
|
|
||||
Long-term borrowings(d) (Note 11)
|
27,097
|
|
27,089
|
|
|
34,225
|
|
36,154
|
|
||||
Long-term borrowings assumed by GE(c)(d) (Note 11)
|
28,964
|
|
32,054
|
|
|
19,249
|
|
19,828
|
|
||||
Operating lease liabilities (Note 7)
|
4,467
|
|
—
|
|
|
257
|
|
—
|
|
||||
Insurance liabilities and annuity benefits (Note 12)
|
—
|
|
—
|
|
|
37,313
|
|
35,994
|
|
||||
Non-current compensation and benefits
|
32,244
|
|
32,910
|
|
|
611
|
|
856
|
|
||||
All other liabilities
|
14,445
|
|
15,717
|
|
|
5,655
|
|
6,724
|
|
||||
Liabilities of businesses held for sale (Note 2)
|
1,839
|
|
748
|
|
|
—
|
|
—
|
|
||||
Liabilities of discontinued operations (Note 2)
|
222
|
|
1,947
|
|
|
1,421
|
|
1,800
|
|
||||
Total liabilities
|
179,840
|
|
178,648
|
|
|
110,450
|
|
112,527
|
|
||||
|
|
|
|
|
|
||||||||
Redeemable noncontrolling interests (Note 15)
|
416
|
|
382
|
|
|
—
|
|
—
|
|
||||
|
|
|
|
|
|
||||||||
Preferred stock (5,939,875 shares outstanding at both March 31, 2019
and December 31, 2018) |
6
|
|
6
|
|
|
6
|
|
6
|
|
||||
Common stock (8,720,808,000 and 8,702,227,000 shares outstanding
at March 31, 2019 and December 31, 2018, respectively) |
702
|
|
702
|
|
|
—
|
|
—
|
|
||||
Accumulated other comprehensive income (loss) - net attributable to GE
|
|
|
|
|
|
||||||||
Investment securities
|
(16
|
)
|
(39
|
)
|
|
(10
|
)
|
(32
|
)
|
||||
Currency translation adjustments
|
(5,810
|
)
|
(6,134
|
)
|
|
(303
|
)
|
(162
|
)
|
||||
Cash flow hedges
|
49
|
|
13
|
|
|
71
|
|
53
|
|
||||
Benefit plans
|
(7,708
|
)
|
(8,254
|
)
|
|
(627
|
)
|
(642
|
)
|
||||
Other capital
|
34,345
|
|
35,504
|
|
|
12,997
|
|
12,883
|
|
||||
Retained earnings
|
96,921
|
|
93,109
|
|
|
(392
|
)
|
(694
|
)
|
||||
Less common stock held in treasury
|
(83,328
|
)
|
(83,925
|
)
|
|
—
|
|
—
|
|
||||
Total GE shareowners’ equity
|
35,161
|
|
30,981
|
|
|
11,743
|
|
11,412
|
|
||||
Noncontrolling interests (Note 15)
|
20,480
|
|
20,499
|
|
|
5
|
|
1
|
|
||||
Total equity (Note 15)
|
55,641
|
|
51,480
|
|
|
11,748
|
|
11,412
|
|
||||
Total liabilities, redeemable noncontrolling interests and equity
|
$
|
235,897
|
|
$
|
230,510
|
|
|
$
|
122,198
|
|
$
|
123,939
|
|
(a)
|
Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1.
|
(b)
|
GE restricted cash was
$444 million
and
$459 million
at
March 31, 2019
and December 31, 2018, respectively, and GE Capital restricted cash was
$63 million
and
$33 million
at
March 31, 2019
and December 31, 2018, respectively.
|
(c)
|
At March 31, 2019, the remaining GE Capital borrowings that had been assumed by GE as part of the GE Capital Exit Plan was
$35,433 million
(
$6,470 million
short term and
$28,964 million
long term), for which GE has an offsetting receivable from GE Capital of
$21,684 million
. The difference of
$13,749 million
represents the amount of borrowings GE Capital had funded with available cash to GE via an intercompany loan in lieu of GE issuing borrowings externally. See Note 11 for further information.
|
(d)
|
At March 31, 2019, total GE borrowings comprises of GE-issued borrowings of
$31,729 million
(
$4,632 million
short term and
$27,097 million
long term) and the
$13,749 million
of borrowings from GE Capital as described in note (c) above for a total of
$45,478 million
(including
$6,315 million
BHGE borrowings). See Note 11 for further information.
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF CASH FLOWS
|
Three months ended March 31
|
|||||
(UNAUDITED)
|
General Electric Company
and consolidated affiliates
|
|||||
(In millions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Cash flows – operating activities
|
|
|
||||
Net earnings (loss)
|
$
|
3,645
|
|
$
|
(1,113
|
)
|
(Earnings) loss from discontinued operations
|
(2,592
|
)
|
1,441
|
|
||
Adjustments to reconcile net earnings (loss)
|
|
|
||||
to cash provided from operating activities
|
|
|
||||
Depreciation and amortization of property, plant and equipment (Note 7)
|
1,249
|
|
1,272
|
|
||
Amortization of intangible assets (Note 8)
|
463
|
|
602
|
|
||
(Earnings) loss from continuing operations retained by GE Capital
|
—
|
|
—
|
|
||
(Gains) losses on purchases and sales of business interests
|
(254
|
)
|
63
|
|
||
Principal pension plans cost (Note 13)
|
868
|
|
1,065
|
|
||
Principal pension plans employer contributions
|
(65
|
)
|
(345
|
)
|
||
Other postretirement benefit plans (net)
|
(296
|
)
|
(423
|
)
|
||
Provision (benefit) for income taxes
|
222
|
|
(50
|
)
|
||
Cash recovered (paid) during the year for income taxes
|
(356
|
)
|
(313
|
)
|
||
Decrease (increase) in contract and other deferred assets
|
(628
|
)
|
(299
|
)
|
||
Decrease (increase) in GE current receivables
|
315
|
|
752
|
|
||
Decrease (increase) in inventories
|
(1,382
|
)
|
(1,019
|
)
|
||
Increase (decrease) in accounts payable
|
173
|
|
(59
|
)
|
||
Increase (decrease) in GE progress collections
|
(271
|
)
|
(165
|
)
|
||
All other operating activities
|
(935
|
)
|
(1,092
|
)
|
||
Cash from (used for) operating activities – continuing operations
|
157
|
|
317
|
|
||
Cash from (used for) operating activities – discontinued operations
|
(115
|
)
|
(5
|
)
|
||
Cash from (used for) operating activities
|
42
|
|
312
|
|
||
|
|
|
||||
Cash flows – investing activities
|
|
|
||||
Additions to property, plant and equipment
|
(1,680
|
)
|
(1,790
|
)
|
||
Dispositions of property, plant and equipment
|
1,126
|
|
624
|
|
||
Additions to internal-use software
|
(77
|
)
|
(97
|
)
|
||
Net decrease (increase) in financing receivables
|
353
|
|
303
|
|
||
Proceeds from sale of discontinued operations
|
2,865
|
|
29
|
|
||
Proceeds from principal business dispositions
|
569
|
|
12
|
|
||
Net cash from (payments for) principal businesses purchased
|
—
|
|
—
|
|
||
All other investing activities
|
234
|
|
441
|
|
||
Cash from (used for) investing activities – continuing operations
|
3,390
|
|
(479
|
)
|
||
Cash from (used for) investing activities – discontinued operations
|
51
|
|
(87
|
)
|
||
Cash from (used for) investing activities
|
3,442
|
|
(566
|
)
|
||
|
|
|
||||
Cash flows – financing activities
|
|
|
||||
Net increase (decrease) in borrowings (maturities of 90 days or less)
|
(446
|
)
|
(1,281
|
)
|
||
Newly issued debt (maturities longer than 90 days)
|
731
|
|
199
|
|
||
Repayments and other debt reductions (maturities longer than 90 days)
|
(3,558
|
)
|
(9,256
|
)
|
||
Net dispositions (purchases) of GE shares for treasury
|
40
|
|
(8
|
)
|
||
Dividends paid to shareowners
|
(88
|
)
|
(1,043
|
)
|
||
All other financing activities
|
(244
|
)
|
(501
|
)
|
||
Cash from (used for) financing activities – continuing operations
|
(3,565
|
)
|
(11,890
|
)
|
||
Cash from (used for) financing activities – discontinued operations
|
(42
|
)
|
(9
|
)
|
||
Cash from (used for) financing activities
|
(3,607
|
)
|
(11,899
|
)
|
||
Effect of currency exchange rate changes on cash, cash equivalents and
restricted cash
|
78
|
|
208
|
|
||
Increase (decrease) in cash, cash equivalents and restricted cash
|
(45
|
)
|
(11,945
|
)
|
||
Cash, cash equivalents and restricted cash at beginning of year
|
35,548
|
|
44,724
|
|
||
Cash, cash equivalents and restricted cash at March 31
|
35,503
|
|
32,779
|
|
||
Less cash, cash equivalents and restricted cash of discontinued operations at March 31
|
598
|
|
779
|
|
||
Cash, cash equivalents and restricted cash of continuing operations at March 31
|
$
|
34,905
|
|
$
|
32,000
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF CASH FLOWS (CONTINUED)
|
Three months ended March 31
|
||||||||||||
(UNAUDITED)
|
GE(a)
|
|
Financial Services (GE Capital)
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||
|
|
|
|
|
|
||||||||
Cash flows – operating activities
|
|
|
|
|
|
||||||||
Net earnings (loss)
|
$
|
3,606
|
|
$
|
(1,146
|
)
|
|
$
|
210
|
|
$
|
(1,735
|
)
|
(Earnings) loss from discontinued operations
|
(2,592
|
)
|
1,441
|
|
|
(35
|
)
|
1,553
|
|
||||
Adjustments to reconcile net earnings (loss)
|
|
|
|
|
|
||||||||
to cash provided from operating activities
|
|
|
|
|
|
||||||||
Depreciation and amortization of property, plant and equipment (Note 7)
|
759
|
|
730
|
|
|
488
|
|
531
|
|
||||
Amortization of intangible assets (Note 8)
|
449
|
|
590
|
|
|
13
|
|
12
|
|
||||
(Earnings) loss from continuing operations retained by GE Capital(b)
|
(135
|
)
|
215
|
|
|
—
|
|
—
|
|
||||
(Gains) losses on purchases and sales of business interests
|
(254
|
)
|
63
|
|
|
—
|
|
—
|
|
||||
Principal pension plans cost (Note13)
|
868
|
|
1,065
|
|
|
—
|
|
—
|
|
||||
Principal pension plans employer contributions
|
(65
|
)
|
(345
|
)
|
|
—
|
|
—
|
|
||||
Other postretirement benefit plans (net)
|
(299
|
)
|
(417
|
)
|
|
3
|
|
(6
|
)
|
||||
Provision (benefit) for income taxes
|
350
|
|
89
|
|
|
(128
|
)
|
(139
|
)
|
||||
Cash recovered (paid) during the year for income taxes
|
(348
|
)
|
(294
|
)
|
|
(8
|
)
|
(19
|
)
|
||||
Decrease (increase) in contract and other deferred assets
|
(628
|
)
|
(299
|
)
|
|
—
|
|
—
|
|
||||
Decrease (increase) in GE current receivables
|
(287
|
)
|
(60
|
)
|
|
—
|
|
—
|
|
||||
Decrease (increase) in inventories
|
(1,308
|
)
|
(1,023
|
)
|
|
3
|
|
8
|
|
||||
Increase (decrease) in accounts payable
|
(58
|
)
|
(348
|
)
|
|
(41
|
)
|
49
|
|
||||
Increase (decrease) in GE progress collections
|
(283
|
)
|
(12
|
)
|
|
—
|
|
—
|
|
||||
All other operating activities (Note 20)
|
(658
|
)
|
(1,366
|
)
|
|
(455
|
)
|
285
|
|
||||
Cash from (used for) operating activities – continuing operations
|
(884
|
)
|
(1,117
|
)
|
|
50
|
|
539
|
|
||||
Cash from (used for) operating activities – discontinued operations
|
(345
|
)
|
105
|
|
|
(86
|
)
|
(33
|
)
|
||||
Cash from (used for) operating activities
|
(1,229
|
)
|
(1,012
|
)
|
|
(36
|
)
|
506
|
|
||||
|
|
|
|
|
|
||||||||
Cash flows – investing activities
|
|
|
|
|
|
||||||||
Additions to property, plant and equipment
|
(837
|
)
|
(854
|
)
|
|
(911
|
)
|
(972
|
)
|
||||
Dispositions of property, plant and equipment
|
138
|
|
166
|
|
|
993
|
|
459
|
|
||||
Additions to internal-use software
|
(74
|
)
|
(89
|
)
|
|
(3
|
)
|
(8
|
)
|
||||
Net decrease (increase) in financing receivables
|
—
|
|
—
|
|
|
1,673
|
|
2,933
|
|
||||
Proceeds from sale of discontinued operations
|
2,865
|
|
—
|
|
|
—
|
|
29
|
|
||||
Proceeds from principal business dispositions
|
561
|
|
12
|
|
|
396
|
|
—
|
|
||||
Net cash from (payments for) principal businesses purchased
|
(396
|
)
|
—
|
|
|
—
|
|
—
|
|
||||
All other investing activities (Note 20)
|
(302
|
)
|
(658
|
)
|
|
1,655
|
|
46
|
|
||||
Cash from (used for) investing activities – continuing operations
|
1,955
|
|
(1,425
|
)
|
|
3,802
|
|
2,487
|
|
||||
Cash from (used for) investing activities – discontinued operations
|
215
|
|
(90
|
)
|
|
152
|
|
(74
|
)
|
||||
Cash from (used for) investing activities
|
2,170
|
|
(1,515
|
)
|
|
3,954
|
|
2,412
|
|
||||
|
|
|
|
|
|
||||||||
Cash flows – financing activities
|
|
|
|
|
|
||||||||
Net increase (decrease) in borrowings (maturities of 90 days or less)
|
(1,171
|
)
|
(1,277
|
)
|
|
(612
|
)
|
(892
|
)
|
||||
Newly issued debt (maturities longer than 90 days)
|
248
|
|
412
|
|
|
483
|
|
72
|
|
||||
Repayments and other debt reductions (maturities longer than 90 days)
|
(302
|
)
|
(916
|
)
|
|
(3,255
|
)
|
(8,383
|
)
|
||||
Net dispositions (purchases) of GE shares for treasury
|
40
|
|
(8
|
)
|
|
—
|
|
—
|
|
||||
Dividends paid to shareowners
|
(88
|
)
|
(1,043
|
)
|
|
(38
|
)
|
—
|
|
||||
All other financing activities (Note 20)
|
(149
|
)
|
(469
|
)
|
|
(95
|
)
|
(32
|
)
|
||||
Cash from (used for) financing activities – continuing operations
|
(1,422
|
)
|
(3,302
|
)
|
|
(3,518
|
)
|
(9,234
|
)
|
||||
Cash from (used for) financing activities – discontinued operations
|
(41
|
)
|
(9
|
)
|
|
(1
|
)
|
—
|
|
||||
Cash from (used for) financing activities
|
(1,464
|
)
|
(3,311
|
)
|
|
(3,519
|
)
|
(9,234
|
)
|
||||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash
|
68
|
|
133
|
|
|
10
|
|
75
|
|
||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
(455
|
)
|
(5,705
|
)
|
|
409
|
|
(6,241
|
)
|
||||
Cash, cash equivalents and restricted cash at beginning of year
|
20,528
|
|
18,822
|
|
|
15,020
|
|
25,902
|
|
||||
Cash, cash equivalents and restricted cash at March 31
|
20,073
|
|
13,118
|
|
|
15,429
|
|
19,661
|
|
||||
Less cash, cash equivalents and restricted cash of discontinued operations at March 31
|
5
|
|
130
|
|
|
593
|
|
650
|
|
||||
Cash, cash equivalents and restricted cash of continuing operations at March 31
|
$
|
20,069
|
|
$
|
12,988
|
|
|
$
|
14,836
|
|
$
|
19,012
|
|
(a)
|
Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1.
|
(b)
|
Represents GE Capital earnings (loss) from continuing operations attributable to the Company, net of GE Capital common dividends paid to GE.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL INFORMATION FOR ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE
(In millions)
|
March 31, 2019
|
|
December 31, 2018
|
|
||
|
|
|
|
|||
Assets
|
|
|
|
|||
Investment securities
|
$
|
28
|
|
$
|
—
|
|
Current receivables(a)
|
506
|
|
184
|
|
||
Inventories
|
953
|
|
529
|
|
||
Property, plant, and equipment – net and Operating lease right-of-use assets
|
1,075
|
|
423
|
|
||
Goodwill and Other intangible assets - net
|
6,601
|
|
884
|
|
||
Valuation allowance on disposal group classified as held for sale(b)
|
(935
|
)
|
(1,013
|
)
|
||
Deferred tax asset
|
942
|
|
—
|
|
||
Other assets
|
739
|
|
623
|
|
||
Assets of businesses held for sale
|
$
|
9,910
|
|
$
|
1,630
|
|
|
|
|
||||
Liabilities
|
|
|
||||
Accounts payable and Progress collections and deferred income(a)
|
$
|
927
|
|
$
|
428
|
|
Non-current compensation and benefits
|
539
|
|
152
|
|
||
Other liabilities
|
334
|
|
128
|
|
||
Liabilities of businesses held for sale
|
$
|
1,801
|
|
$
|
708
|
|
(a)
|
Includes GE current receivables sold to GE Capital of $
308
million and $
105
million at
March 31, 2019
and
December 31, 2018
,
respectively, and GE accounts payable for material procurement with GE Capital of
$
38
million and
$40 million
at March 31, 2019 and December 31, 2018, respectively. These intercompany balances, included within our held for sale businesses, are reported in the GE and GE Capital columns of our financial statements, and are eliminated in deriving our consolidated financial statements.
|
(b)
|
In the first quarter of 2019, we reduced the valuation allowance for certain held for sale businesses by
$32 million
.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS
(In millions)
|
Three months ended March 31
|
|
|||||
|
2019
|
|
2018
|
|
|
||
|
|
|
|
||||
Operations
|
|
|
|
|
|
||
Sales of goods and services
|
$
|
549
|
|
$
|
872
|
|
|
GE Capital revenues and other income (loss)
|
39
|
|
(1,472
|
)
|
(a)
|
||
Cost of goods and services sold
|
(478
|
)
|
(615
|
)
|
|
||
Other costs and expenses
|
(84
|
)
|
(224
|
)
|
|
||
|
|
|
|
||||
Earnings (loss) of discontinued operations before income taxes
|
$
|
26
|
|
$
|
(1,439
|
)
|
|
Benefit (provision) for income taxes
|
13
|
|
(5
|
)
|
|
||
Earnings (loss) of discontinued operations, net of taxes
|
$
|
39
|
|
$
|
(1,444
|
)
|
|
|
|
|
|
||||
Disposal
|
|
|
|
||||
Gain (loss) on disposal before income taxes
|
$
|
3,518
|
|
$
|
4
|
|
|
Benefit (provision) for income taxes
|
(964
|
)
|
(1
|
)
|
|
||
Gain (loss) on disposal, net of taxes
|
$
|
2,553
|
|
$
|
3
|
|
|
|
|
|
|
||||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
2,592
|
|
$
|
(1,441
|
)
|
|
|
|
|
|
||||
Gains (loss) on disposals, net of taxes - Transportation
|
2,508
|
|
—
|
|
|
||
Gains (loss) on disposals, net of taxes - Capital
|
45
|
|
3
|
|
|
||
Earnings (loss) from discontinued operations, net of taxes - Transportation
|
2,557
|
|
112
|
|
|
||
Earnings (loss) from discontinued operations, net of taxes - Capital
|
35
|
|
(1,553
|
)
|
|
(a)
|
Included a
$1,500
million charge related to the DOJ investigation of potential violations of FIRREA by WMC and GE Capital.
|
(a)
|
Included
$4,573
million of assets and
$1,871
million of liabilities related to our Transportation business as of December 31, 2018, which we classified as discontinued operations in the first quarter of 2019.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||
(In millions)
|
Amortized
cost |
|
Gross
unrealized gains |
|
Gross
unrealized losses (a) |
|
Estimated
fair value (b) |
|
|
Amortized
cost |
|
Gross
unrealized gains |
|
Gross
unrealized losses (a) |
|
Estimated
fair value (b) |
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Debt
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. corporate
|
$
|
21,390
|
|
$
|
2,903
|
|
$
|
(71
|
)
|
$
|
24,222
|
|
|
$
|
21,306
|
|
$
|
2,257
|
|
$
|
(357
|
)
|
$
|
23,206
|
|
Non-U.S. corporate
|
1,848
|
|
96
|
|
(12
|
)
|
1,932
|
|
|
1,906
|
|
53
|
|
(76
|
)
|
1,883
|
|
||||||||
State and municipal
|
3,136
|
|
455
|
|
(37
|
)
|
3,555
|
|
|
3,320
|
|
367
|
|
(54
|
)
|
3,633
|
|
||||||||
Mortgage and asset-backed
|
3,184
|
|
75
|
|
(15
|
)
|
3,244
|
|
|
3,325
|
|
51
|
|
(54
|
)
|
3,322
|
|
||||||||
Government and agencies
|
1,604
|
|
79
|
|
(1
|
)
|
1,682
|
|
|
1,603
|
|
63
|
|
(20
|
)
|
1,645
|
|
||||||||
Equity(a)
|
3,639
|
|
—
|
|
—
|
|
3,639
|
|
|
146
|
|
—
|
|
—
|
|
146
|
|
||||||||
Total
|
$
|
34,802
|
|
$
|
3,608
|
|
$
|
(134
|
)
|
$
|
38,275
|
|
|
$
|
31,605
|
|
$
|
2,792
|
|
$
|
(561
|
)
|
$
|
33,835
|
|
(a)
|
Primarily comprises interest in Wabtec that was received as consideration from the merger of our Transportation business with Wabtec as described in Note 2. Net unrealized gains (losses) recorded to earnings for equity securities were
$19 million
and
$(29) million
for the three months ended
March 31, 2019
and 2018, respectively
.
|
CONTRACTUAL MATURITIES OF INVESTMENT IN AVAILABLE-FOR-SALE DEBT SECURITIES (EXCLUDING MORTGAGE AND ASSET-BACKED SECURITIES)
(In millions)
|
Amortized
cost
|
|
Estimated
fair value
|
|
||
|
|
|
||||
Due(a)
|
|
|
||||
Within one year
|
$
|
434
|
|
$
|
436
|
|
After one year through five years
|
2,957
|
|
3,092
|
|
||
After five years through ten years
|
6,117
|
|
6,741
|
|
||
After ten years
|
18,532
|
|
21,195
|
|
(a)
|
We expect actual maturities to differ from contractual maturities because borrowers have the right to call or prepay certain obligations.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
Consolidated
|
|
GE
|
||||||||||
(In millions)
|
March 31, 2019
|
|
December 31, 2018
|
|
|
March 31, 2019
|
|
December 31, 2018
|
|
||||
|
|
|
|
|
|
||||||||
Current receivables
|
$
|
20,578
|
|
$
|
20,481
|
|
|
$
|
16,990
|
|
$
|
16,092
|
|
Allowance for losses
|
(1,060
|
)
|
(997
|
)
|
|
(1,055
|
)
|
(989
|
)
|
||||
Total
|
$
|
19,518
|
|
$
|
19,484
|
|
|
$
|
15,936
|
|
$
|
15,103
|
|
Three months ended March 31
|
2019
|
|
2018
|
||||||||||||
(In millions)
|
GE Capital
|
|
|
Third Parties
|
|
GE Capital
|
|
|
Third Parties
|
||||||
|
|
|
|
|
|
|
|
||||||||
Balance at January 1
|
$
|
4,386
|
|
|
$
|
7,885
|
|
|
$
|
9,877
|
|
|
$
|
5,718
|
|
GE sales to GE Capital
|
9,403
|
|
|
—
|
|
|
12,135
|
|
|
—
|
|
||||
GE sales to third parties
|
—
|
|
|
1,161
|
|
|
—
|
|
|
1,112
|
|
||||
GE Capital sales to third parties
|
(6,580
|
)
|
|
6,580
|
|
|
(6,684
|
)
|
|
6,684
|
|
||||
Collections and other
|
(3,552
|
)
|
|
(7,905
|
)
|
|
(7,214
|
)
|
|
(7,898
|
)
|
||||
Balance as of March 31
|
$
|
3,658
|
|
|
$
|
7,721
|
|
|
$
|
8,113
|
|
|
$
|
5,616
|
|
(In millions)
|
March 31, 2019
|
|
December 31, 2018
|
|
||
|
|
|
||||
Raw materials and work in process
|
$
|
10,412
|
|
$
|
10,102
|
|
Finished goods
|
8,836
|
|
8,136
|
|
||
Unbilled shipments
|
170
|
|
201
|
|
||
Total Inventories
|
$
|
19,419
|
|
$
|
18,439
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
GE CAPITAL FINANCING RECEIVABLES, NET
(In millions)
|
March 31, 2019
|
|
December 31, 2018
|
|
||
|
|
|
||||
Loans, net of deferred income
|
$
|
9,620
|
|
$
|
10,834
|
|
Investment in financing leases, net of deferred income(a)
|
2,408
|
|
2,822
|
|
||
|
12,028
|
|
13,656
|
|
||
Allowance for losses
|
(21
|
)
|
(28
|
)
|
||
Financing receivables – net
|
$
|
12,007
|
|
$
|
13,628
|
|
(a)
|
Finance lease income was
$45 million
and
$72 million
in the three months ended March 31, 2019 and 2018, respectively.
|
PROPERTY, PLANT AND EQUIPMENT
(In millions)
|
March 31, 2019
|
|
December 31, 2018
|
|
||
|
|
|
||||
Original cost
|
$
|
86,037
|
|
$
|
85,476
|
|
Less accumulated depreciation and amortization
|
(35,773
|
)
|
(35,637
|
)
|
||
Property, plant and equipment – net
|
$
|
50,265
|
|
$
|
49,839
|
|
OPERATING LEASE EXPENSE
|
Long-term (fixed)
|
Long-term (Variable)
|
Short-term
|
Total Operating lease expense
|
||||||||||||||||||||
March 31 (In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||||||
Total
|
$
|
269
|
|
$
|
310
|
|
$
|
61
|
|
$
|
63
|
|
$
|
170
|
|
$
|
118
|
|
$
|
499
|
|
$
|
492
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
MATURITY OF LEASE LIABILITIES
(In millions)
|
Total
|
|
|
2019
(excluding three months ended March 31, 2019)
|
$
|
819
|
|
2020
|
929
|
|
|
2021
|
743
|
|
|
2022
|
617
|
|
|
2023
|
491
|
|
|
Thereafter
|
1,434
|
|
|
Total undiscounted lease payments
|
5,034
|
|
|
Less: imputed interest
|
(854
|
)
|
|
Total lease liability
|
$
|
4,180
|
|
SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES
(Dollars in millions)
|
March 31, 2019
|
|
|
Operating cash flows used for operating leases
|
$
|
274
|
|
Right-of-use assets obtained in exchange for new lease liabilities
|
$
|
201
|
|
Weighted-average remaining lease term
|
7.6 years
|
|
|
Weighted-average discount rate
|
5.0
|
%
|
GOODWILL
(In millions)
|
January 1, 2019
|
|
Acquisitions
|
|
Dispositions,
currency exchange and other |
|
Balance at
March 31, 2019 |
|
||||
|
|
|
|
|
|
|
||||||
Power
|
$
|
1,772
|
|
$
|
—
|
|
$
|
14
|
|
$
|
1,787
|
|
Renewable Energy
|
3,971
|
|
—
|
|
23
|
|
3,994
|
|
||||
Aviation
|
9,839
|
|
—
|
|
2
|
|
9,841
|
|
||||
Oil & Gas
|
24,455
|
|
—
|
|
60
|
|
24,514
|
|
||||
Healthcare
|
17,226
|
|
—
|
|
(5,500
|
)
|
11,727
|
|
||||
Capital
|
904
|
|
—
|
|
(26
|
)
|
878
|
|
||||
Corporate
|
563
|
|
—
|
|
(109
|
)
|
454
|
|
||||
Total
|
$
|
58,730
|
|
$
|
—
|
|
$
|
(5,536
|
)
|
$
|
53,194
|
|
OTHER INTANGIBLE ASSETS - NET
(In millions)
|
March 31, 2019
|
|
December 31, 2018
|
|
||
|
|
|
||||
Intangible assets subject to amortization
|
$
|
14,812
|
|
$
|
15,675
|
|
Indefinite-lived intangible assets(a)
|
2,242
|
|
2,222
|
|
||
Total
|
$
|
17,053
|
|
$
|
17,897
|
|
(a)
|
Indefinite-lived intangible assets comprises trademarks/trade names in our Oil & Gas segment.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
EQUIPMENT & SERVICES REVENUES(a)
|
Three months ended March 31
|
||||||||||||||||||
(In millions)
|
2019
|
|
2018
|
||||||||||||||||
|
Equipment Revenues
|
Services Revenues
|
Total Revenues
|
|
Equipment Revenues
|
Services Revenues
|
Total Revenues
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||||||
Power
|
$
|
2,424
|
|
$
|
3,235
|
|
$
|
5,659
|
|
|
$
|
3,524
|
|
$
|
3,698
|
|
$
|
7,222
|
|
Renewable Energy
|
1,123
|
|
481
|
|
1,604
|
|
|
1,204
|
|
442
|
|
1,646
|
|
||||||
Aviation
|
3,113
|
|
4,841
|
|
7,954
|
|
|
2,539
|
|
4,573
|
|
7,112
|
|
||||||
Oil & Gas
|
2,269
|
|
3,347
|
|
5,616
|
|
|
2,229
|
|
3,156
|
|
5,385
|
|
||||||
Healthcare
|
2,653
|
|
2,029
|
|
4,683
|
|
|
2,607
|
|
2,095
|
|
4,702
|
|
||||||
Total Industrial Segment Revenues
|
$
|
11,583
|
|
$
|
13,934
|
|
$
|
25,517
|
|
|
$
|
12,103
|
|
$
|
13,964
|
|
$
|
26,067
|
|
(a)
|
Revenues classification consistent with our MD&A defined Services revenue
|
SUB-SEGMENT REVENUES
|
Three months ended March 31
|
||||||
(In millions)
|
2019
|
|
|
2018
|
|
||
|
|
|
|
||||
Gas Power
|
$
|
3,260
|
|
|
$
|
3,539
|
|
Power Portfolio
|
2,399
|
|
|
3,682
|
|
||
Power Revenues
|
$
|
5,659
|
|
|
$
|
7,222
|
|
|
|
|
|
||||
Onshore Wind
|
$
|
1,441
|
|
|
$
|
1,260
|
|
Hydro and Offshore Wind
|
164
|
|
|
385
|
|
||
Renewable Energy Revenues
|
$
|
1,604
|
|
|
$
|
1,646
|
|
|
|
|
|
||||
Commercial Engines & Services
|
$
|
5,949
|
|
|
$
|
5,272
|
|
Military
|
1,036
|
|
|
971
|
|
||
Systems & Other
|
969
|
|
|
870
|
|
||
Aviation Revenues
|
$
|
7,954
|
|
|
$
|
7,112
|
|
|
|
|
|
||||
Turbomachinery & Process Solutions (TPS)
|
$
|
1,305
|
|
|
$
|
1,447
|
|
Oilfield Services (OFS)
|
2,986
|
|
|
2,678
|
|
||
Oilfield Equipment (OFE)
|
735
|
|
|
664
|
|
||
Digital Solutions
|
591
|
|
|
596
|
|
||
Oil & Gas Revenues
|
$
|
5,616
|
|
|
$
|
5,385
|
|
|
|
|
|
||||
Healthcare Systems
|
$
|
3,433
|
|
|
$
|
3,576
|
|
Life Sciences
|
1,250
|
|
|
1,125
|
|
||
Healthcare Revenues
|
$
|
4,683
|
|
|
$
|
4,702
|
|
|
|
|
|
||||
Total Industrial Segment Revenues
|
$
|
25,517
|
|
|
$
|
26,067
|
|
Capital Revenues(a)
|
2,227
|
|
|
2,173
|
|
||
Corporate items and eliminations
|
(458
|
)
|
|
(452
|
)
|
||
Consolidated Revenues(a)
|
$
|
27,286
|
|
|
$
|
27,788
|
|
(a)
|
Includes
$2,202 million
and
$2,117 million
for the three months ended
March 31, 2019
and 2018, respectively, of revenues at GE Capital outside of the scope of ASC 606.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
March 31, 2019 (In millions)
|
Power
|
Aviation
|
Oil & Gas
|
Renewable Energy
|
Other(a)
|
Total
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||
Revenues in excess of billings
|
$
|
5,498
|
|
$
|
5,274
|
|
$
|
670
|
|
$
|
—
|
|
$
|
—
|
|
$
|
11,442
|
|
Billings in excess of revenues
|
(1,693
|
)
|
(3,108
|
)
|
(195
|
)
|
—
|
|
—
|
|
(4,996
|
)
|
||||||
Long-term service agreements(b)
|
3,805
|
|
2,166
|
|
475
|
|
—
|
|
—
|
|
6,446
|
|
||||||
Equipment contract revenues(c)(d)
|
4,032
|
|
438
|
|
1,040
|
|
328
|
|
492
|
|
6,329
|
|
||||||
Total contract assets
|
7,837
|
|
2,604
|
|
1,515
|
|
328
|
|
492
|
|
12,776
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Deferred inventory costs
|
808
|
|
434
|
|
144
|
|
1,517
|
|
324
|
|
3,226
|
|
||||||
Nonrecurring engineering costs
|
125
|
|
2,005
|
|
48
|
|
22
|
|
34
|
|
2,234
|
|
||||||
Customer advances and other
|
—
|
|
1,136
|
|
—
|
|
—
|
|
—
|
|
1,136
|
|
||||||
Contract and other deferred assets
|
$
|
8,770
|
|
$
|
6,179
|
|
$
|
1,707
|
|
$
|
1,866
|
|
$
|
849
|
|
$
|
19,371
|
|
December 31, 2018 (In millions)
|
Power
|
Aviation
|
Oil & Gas
|
Renewable Energy
|
Other(a)
|
Total
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||
Revenues in excess of billings
|
$
|
5,368
|
|
$
|
5,412
|
|
$
|
703
|
|
$
|
—
|
|
$
|
—
|
|
$
|
11,482
|
|
Billings in excess of revenues
|
(1,693
|
)
|
(3,297
|
)
|
(187
|
)
|
—
|
|
—
|
|
(5,176
|
)
|
||||||
Long-term service agreements(b)
|
3,675
|
|
2,115
|
|
516
|
|
—
|
|
—
|
|
6,306
|
|
||||||
Equipment contract revenues(c)(d)
|
3,899
|
|
352
|
|
1,085
|
|
287
|
|
551
|
|
6,174
|
|
||||||
Total contract assets
|
7,574
|
|
2,468
|
|
1,600
|
|
287
|
|
551
|
|
12,480
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Deferred inventory costs
|
1,012
|
|
673
|
|
179
|
|
1,258
|
|
365
|
|
3,488
|
|
||||||
Nonrecurring engineering costs
|
124
|
|
1,916
|
|
22
|
|
22
|
|
34
|
|
2,117
|
|
||||||
Customer advances and other
|
—
|
|
1,146
|
|
—
|
|
—
|
|
—
|
|
1,146
|
|
||||||
Contract and other deferred assets
|
$
|
8,709
|
|
$
|
6,204
|
|
$
|
1,800
|
|
$
|
1,567
|
|
$
|
951
|
|
$
|
19,231
|
|
(a)
|
Primarily includes our Healthcare segment.
|
(b)
|
In our consolidated Statement of Financial Position, long-term service agreement balances are presented net of related billings in excess of revenues.
|
(c)
|
Included in this balance are revenues in excess of billings of
$714 million
and
$592 million
as of March 31, 2019 and December 31, 2018, primarily in our Aviation and Healthcare segments, related to short-term service agreements.
|
(d)
|
Included in this balance are amounts due from customers for the sale of service upgrades, which we collect through higher fixed or usage-based fees from servicing the equipment under long-term service agreements. Amounts due from these arrangements totaled
$895 million
and
$883 million
, as of March 31, 2019 and December 31, 2018, respectively.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
March 31, 2019 (In millions)
|
Power
|
Aviation
|
Oil & Gas
|
Renewable Energy
|
Other(a)
|
Total
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||
Progress collections on equipment contracts
|
$
|
6,596
|
|
$
|
98
|
|
$
|
1,075
|
|
$
|
374
|
|
$
|
—
|
|
$
|
8,143
|
|
Other progress collections
|
535
|
|
4,159
|
|
535
|
|
3,283
|
|
277
|
|
8,789
|
|
||||||
Total progress collections
|
$
|
7,131
|
|
$
|
4,257
|
|
$
|
1,610
|
|
$
|
3,657
|
|
$
|
277
|
|
$
|
16,932
|
|
Deferred income
|
147
|
|
1,385
|
|
132
|
|
255
|
|
1,617
|
|
3,536
|
|
||||||
Progress collections and deferred income
|
$
|
7,278
|
|
$
|
5,642
|
|
$
|
1,742
|
|
$
|
3,912
|
|
$
|
1,894
|
|
$
|
20,469
|
|
December 31, 2018 (In millions)
|
Power
|
Aviation
|
Oil & Gas
|
Renewable Energy
|
Other(a)
|
Total
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||
Progress collections on equipment contracts
|
$
|
6,690
|
|
$
|
114
|
|
$
|
878
|
|
$
|
423
|
|
$
|
—
|
|
$
|
8,105
|
|
Other progress collections
|
692
|
|
4,034
|
|
552
|
|
3,467
|
|
338
|
|
9,083
|
|
||||||
Total progress collections
|
$
|
7,382
|
|
$
|
4,148
|
|
$
|
1,430
|
|
$
|
3,890
|
|
$
|
338
|
|
$
|
17,188
|
|
Deferred income
|
163
|
|
1,338
|
|
164
|
|
241
|
|
1,739
|
|
3,645
|
|
||||||
Progress collections and deferred income
|
$
|
7,545
|
|
$
|
5,486
|
|
$
|
1,594
|
|
$
|
4,131
|
|
$
|
2,077
|
|
$
|
20,833
|
|
(a)
|
Primarily includes our Healthcare segment.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
(In millions)
|
March 31, 2019
|
December 31, 2018
|
||||
|
|
|
||||
Short-term borrowings
|
|
|
||||
GE
|
|
|
||||
Commercial paper
|
$
|
2,998
|
|
$
|
3,005
|
|
Current portion of long-term borrowings
|
86
|
|
103
|
|
||
Current portion of long-term borrowings assumed by GE(d)
|
6,470
|
|
4,207
|
|
||
Other
|
1,548
|
|
2,084
|
|
||
Total GE short-term borrowings
|
$
|
11,102
|
|
$
|
9,400
|
|
|
|
|
||||
GE Capital
|
|
|
||||
Commercial paper
|
$
|
—
|
|
$
|
5
|
|
Current portion of long-term borrowings(a)
|
5,462
|
|
3,984
|
|
||
Intercompany payable to GE(c)
|
2,436
|
|
2,684
|
|
||
Other
|
385
|
|
1,010
|
|
||
Total GE Capital short-term borrowings
|
$
|
8,283
|
|
$
|
7,684
|
|
|
|
|
||||
Eliminations(c)
|
(3,432
|
)
|
(4,262
|
)
|
||
Total short-term borrowings
|
$
|
15,953
|
|
$
|
12,821
|
|
|
|
|
||||
Long-term borrowings
|
|
|
||||
GE
|
|
|
||||
Senior notes(b)
|
$
|
26,668
|
|
$
|
26,628
|
|
Senior notes assumed by GE(d)
|
26,089
|
|
29,218
|
|
||
Subordinated notes assumed by GE(d)
|
2,875
|
|
2,836
|
|
||
Other
|
429
|
|
460
|
|
||
Other borrowings assumed by GE(d)
|
—
|
|
—
|
|
||
Total GE long-term borrowings
|
$
|
56,061
|
|
$
|
59,143
|
|
|
|
|
||||
GE Capital
|
|
|
||||
Senior notes
|
$
|
33,161
|
|
$
|
35,105
|
|
Subordinated notes
|
179
|
|
165
|
|
||
Intercompany payable to GE(c)
|
19,249
|
|
19,828
|
|
||
Other(a)
|
884
|
|
885
|
|
||
Total GE Capital long-term borrowings
|
$
|
53,473
|
|
$
|
55,982
|
|
|
|
|
||||
Eliminations(c)
|
(19,311
|
)
|
(19,892
|
)
|
||
Total long-term borrowings
|
$
|
90,223
|
|
$
|
95,234
|
|
Non-recourse borrowings of consolidated securitization entities(e)
|
1,350
|
|
1,875
|
|
||
Total borrowings
|
$
|
107,526
|
|
$
|
109,930
|
|
(a)
|
Included
$127 million
and
$884 million
of short- and long-term borrowings, respectively, at
March 31, 2019
and
$161
million and
$885
million of short- and long-term borrowings, respectively, at
December 31, 2018
, of funding secured by aircraft and other collateral. Of this,
$219 million
and
$216 million
is non-recourse to GE Capital at
March 31, 2019
and
December 31, 2018
, respectively.
|
(b)
|
Included
$6,174
million and
$6,177
million of BHGE senior notes at
March 31, 2019
and
December 31, 2018
, respectively. Total BHGE borrowings were
$6,315
million and
$6,330
million at
March 31, 2019
and
December 31, 2018
, respectively.
|
(c)
|
Included a reduction of
$4,034 million
and
$1,523 million
for the current portion of intercompany loans from GE Capital to GE at
March 31, 2019
and
December 31, 2018
, respectively, and a reduction of
$9,715 million
and
$12,226 million
for long-term intercompany loans from GE Capital to GE at
March 31, 2019
and
December 31, 2018
, respectively. These loans bear the right of offset against amounts owed under the assumed debt agreement and can be prepaid by GE at any time in whole or in part, without premium or penalty.
|
(d)
|
At March 31, 2019, the remaining GE Capital borrowings that had been assumed by GE as part of the GE Capital Exit Plan was
$35,433 million
(
$6,470 million
short term and
$28,964
long term), for which GE has an offsetting Receivable from GE Capital of
$21,684 million
. The difference of
$13,749 million
represents the amount of borrowings GE Capital had funded with available cash to GE via an intercompany loan in lieu of GE issuing borrowings externally.
|
(e)
|
Included
$1,135 million
and
$225 million
of current portion of long-term borrowings at
March 31, 2019
and
December 31, 2018
, respectively. See Note 18 for further information.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
March 31, 2019 (In millions)
|
Long-term care insurance contracts
|
Structured settlement annuities & life insurance contracts
|
Other
contracts |
Other adjustments(a)
|
Total
|
||||||||||
|
|
|
|
|
|
||||||||||
Future policy benefit reserves
|
$
|
16,085
|
|
$
|
9,468
|
|
$
|
163
|
|
$
|
3,458
|
|
$
|
29,174
|
|
Claim reserves
|
3,977
|
|
231
|
|
1,174
|
|
—
|
|
5,382
|
|
|||||
Investment contracts
|
—
|
|
1,216
|
|
1,119
|
|
—
|
|
2,335
|
|
|||||
Unearned premiums and other
|
31
|
|
199
|
|
192
|
|
—
|
|
422
|
|
|||||
|
20,093
|
|
11,114
|
|
2,648
|
|
3,458
|
|
37,313
|
|
|||||
Eliminations
|
—
|
|
—
|
|
(544
|
)
|
—
|
|
(544
|
)
|
|||||
Total
|
$
|
20,093
|
|
$
|
11,114
|
|
$
|
2,104
|
|
$
|
3,458
|
|
$
|
36,769
|
|
December 31, 2018 (In millions)
|
Long-term care insurance contracts
|
Structured settlement annuities & life insurance contracts
|
Other
contracts |
Other adjustments(a)
|
Total
|
||||||||||
|
|
|
|
|
|
||||||||||
Future policy benefit reserves
|
$
|
16,029
|
|
$
|
9,495
|
|
$
|
169
|
|
$
|
2,247
|
|
$
|
27,940
|
|
Claim reserves
|
3,917
|
|
230
|
|
1,178
|
|
—
|
|
5,324
|
|
|||||
Investment contracts
|
—
|
|
1,239
|
|
1,149
|
|
—
|
|
2,388
|
|
|||||
Unearned premiums and other
|
34
|
|
205
|
|
103
|
|
—
|
|
342
|
|
|||||
|
19,980
|
|
11,169
|
|
2,599
|
|
2,247
|
|
35,994
|
|
|||||
Eliminations
|
—
|
|
—
|
|
(432
|
)
|
—
|
|
(432
|
)
|
|||||
Total
|
$
|
19,980
|
|
$
|
11,169
|
|
$
|
2,167
|
|
$
|
2,247
|
|
$
|
35,562
|
|
(a)
|
To the extent that unrealized gains on specific investment securities supporting our insurance contracts would result in a premium deficiency should those gains be realized, an increase in future policy benefit reserves is recorded, with an after-tax reduction of net unrealized gains recognized through "Other comprehensive income" in our consolidated Statement of Earnings (Loss).
|
EFFECT ON OPERATIONS OF PENSION PLANS
|
Principal pension plans
|
|||||||
|
Three months ended March 31
|
|||||||
(In millions)
|
2019
|
|
|
2018
|
|
|
||
|
|
|
|
|
||||
Service cost for benefits earned
|
$
|
158
|
|
|
$
|
232
|
|
|
Prior service cost amortization
|
33
|
|
|
36
|
|
|
||
Expected return on plan assets
|
(863
|
)
|
|
(820
|
)
|
|
||
Interest cost on benefit obligations
|
726
|
|
|
666
|
|
|
||
Net actuarial loss amortization
|
763
|
|
|
951
|
|
|
||
Curtailment loss
|
51
|
|
(a)
|
—
|
|
|
||
Pension plans cost
|
$
|
868
|
|
|
$
|
1,065
|
|
|
(a)
|
Curtailment loss resulting from the spin-off and subsequent merger of our Transportation segment with Wabtec which is included in "Earnings (loss) from discontinued operations" in our
consolidated Statement of Earnings (Loss).
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
Other pension plans
|
|||||||
|
Three months ended March 31
|
|||||||
(In millions)
|
2019
|
|
|
2018
|
|
|
||
|
|
|
|
|
||||
Service cost for benefits earned
|
$
|
66
|
|
|
$
|
95
|
|
|
Expected return on plan assets
|
(309
|
)
|
|
(358
|
)
|
|
||
Interest cost on benefit obligations
|
157
|
|
|
156
|
|
|
||
Net actuarial loss amortization
|
83
|
|
|
82
|
|
|
||
Settlement loss
|
9
|
|
|
—
|
|
|
||
Pension plans cost (income)
|
$
|
6
|
|
|
$
|
(25
|
)
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
Three months ended March 31
|
|||||
(In millions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Preferred stock issued
|
$
|
6
|
|
$
|
6
|
|
Common stock issued
|
$
|
702
|
|
$
|
702
|
|
Accumulated other comprehensive income (loss)
|
|
|
||||
Beginning balance
|
$
|
(14,414
|
)
|
$
|
(14,404
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
|
||||
Investment securities - net of deferred taxes of $38 and $65(a)
|
28
|
|
109
|
|
||
Currency translation adjustments (CTA) - net of deferred taxes of $26 and $(149)
|
307
|
|
832
|
|
||
Cash flow hedges - net of deferred taxes of $11 and $31
|
34
|
|
105
|
|
||
Benefit plans - net of deferred taxes of $48 and $(1)
|
(116
|
)
|
(58
|
)
|
||
Total
|
$
|
253
|
|
$
|
988
|
|
Reclassifications from other comprehensive income
|
|
|
||||
Investment securities - net of deferred taxes of $(1) and $(2)
|
(4
|
)
|
(10
|
)
|
||
Currency translation on dispositions - net of deferred taxes of $(4) and zero
|
117
|
|
(2
|
)
|
||
Cash flow hedges - net of deferred taxes of $(4) and $(15) (Note 17)
|
3
|
|
(50
|
)
|
||
Benefit plans - net of deferred taxes of $183 and $218
|
662
|
|
775
|
|
||
Total
|
$
|
778
|
|
$
|
713
|
|
Other comprehensive income (loss)
|
1,031
|
|
1,702
|
|
||
Less other comprehensive income (loss) attributable to noncontrolling interests
|
101
|
|
160
|
|
||
Other comprehensive income (loss), net, attributable to GE
|
930
|
|
1,542
|
|
||
Ending Balance
|
$
|
(13,485
|
)
|
$
|
(12,862
|
)
|
Other capital
|
|
|
||||
Beginning balance
|
35,504
|
|
37,384
|
|
||
Gains (losses) on treasury stock dispositions and other(b)
|
(1,159
|
)
|
(45
|
)
|
||
Ending Balance
|
$
|
34,345
|
|
$
|
37,339
|
|
Retained earnings
|
|
|
||||
Beginning balance
|
93,109
|
|
117,245
|
|
||
Net earnings (loss) attributable to the Company
|
3,588
|
|
(1,147
|
)
|
||
Dividends and other transactions with shareowners
|
(126
|
)
|
(1,078
|
)
|
||
Redemption value adjustment on redeemable noncontrolling interests
|
(18
|
)
|
(44
|
)
|
||
Changes in accounting (Note 1)
|
368
|
|
500
|
|
||
Ending Balance
|
$
|
96,921
|
|
$
|
115,477
|
|
Common stock held in treasury
|
|
|
||||
Beginning balance
|
(83,925
|
)
|
(84,902
|
)
|
||
Purchases
|
(38
|
)
|
(85
|
)
|
||
Dispositions
|
636
|
|
290
|
|
||
Ending Balance
|
$
|
(83,328
|
)
|
$
|
(84,697
|
)
|
Total equity
|
|
|
||||
GE shareowners' equity balance
|
35,161
|
|
55,965
|
|
||
Noncontrolling interests balance
|
20,485
|
|
17,228
|
|
||
Total equity balance at March 31
|
$
|
55,646
|
|
$
|
73,193
|
|
(a)
|
Included adjustments of
$(957) million
and
$938 million
for the three months ended March 31, 2019 and 2018, respectively, to investment contracts, insurance liabilities and annuity benefits in our run-off insurance operations to reflect the effects that would have been recognized had the related unrealized investment security gains been realized. See Note 12 for further information.
|
(b)
|
On February 25, 2019, we completed the spin off and subsequent merger of our Transportation segment with Wabtec. A gain on distribution of
$88 million
and related taxes of
$(940) million
were recorded on the transaction resulting in a net decrease to additional paid in capital of
$852
million. See Note 2 for further information.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
Three months ended March 31
|
||||||||||||
|
2019
|
|
2018
|
||||||||||
(In millions; per-share amounts in dollars)
|
Diluted
|
|
Basic
|
|
|
Diluted
|
|
Basic
|
|
||||
|
|
|
|
|
|
||||||||
Amounts attributable to the Company:
|
|
|
|
|
|
||||||||
Earnings from continuing operations for per-share calculation(a)(b)(c)
|
$
|
973
|
|
$
|
991
|
|
|
$
|
292
|
|
$
|
293
|
|
Preferred stock dividends
|
(40
|
)
|
(40
|
)
|
|
(37
|
)
|
(37
|
)
|
||||
Earnings from continuing operations attributable to
common shareowners for per-share calculation(a)(b)(c) |
933
|
|
951
|
|
|
255
|
|
256
|
|
||||
Earnings (loss) from discontinued operations
for per-share calculation(a)(b) |
2,568
|
|
2,586
|
|
|
(1,448
|
)
|
(1,447
|
)
|
||||
Net earnings (loss) attributable to GE common
shareowners for per-share calculation(a)(b)(c) |
$
|
3,519
|
|
$
|
3,537
|
|
|
$
|
(1,189
|
)
|
$
|
(1,189
|
)
|
|
|
|
|
|
|
||||||||
Average equivalent shares
|
|
|
|
|
|
||||||||
Shares of GE common stock outstanding
|
8,711
|
|
8,711
|
|
|
8,683
|
|
8,683
|
|
||||
Employee compensation-related shares (including stock options)
|
15
|
|
—
|
|
|
13
|
|
—
|
|
||||
Total average equivalent shares
|
8,726
|
|
8,711
|
|
|
8,696
|
|
8,683
|
|
||||
|
|
|
|
|
|
||||||||
Per-share amounts(d)
|
|
|
|
|
|
||||||||
Earnings from continuing operations
|
$
|
0.11
|
|
$
|
0.11
|
|
|
$
|
0.03
|
|
$
|
0.03
|
|
Earnings (loss) from discontinued operations
|
0.29
|
|
0.30
|
|
|
(0.17
|
)
|
(0.17
|
)
|
||||
Net earnings (loss)
|
0.40
|
|
0.41
|
|
|
(0.14
|
)
|
(0.14
|
)
|
|
|
|
|
|
|
(a)
|
Our unvested restricted stock unit awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities, and, therefore, are included in the computation of earnings per share pursuant to the two-class method. For the three months ended March 31, 2019, application of this treatment had an insignificant effect. For the three months ended March 31, 2018, as a result of excess dividends in respect to the current period earnings, losses were not allocated to the participating securities.
|
(b)
|
Included an insignificant amount of dividend equivalents in each of the periods presented.
|
(c)
|
Included in 2019 is a dilutive adjustment for the change in income for forward purchase contracts that may be settled in stock.
|
(d)
|
Earnings per share amounts are computed independently for earnings from continuing operations, earnings from discontinued operations and net earnings. As a result, the sum of per-share amounts from continuing operations and discontinued operations may not equal the total per-share amounts for net earnings.
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||
(In millions)
|
Carrying
amount (net) |
|
Estimated
fair value |
|
|
Carrying
amount (net) |
|
Estimated
fair value |
|
||||
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
||||||||
Loans and other receivables
|
$
|
8,345
|
|
$
|
8,375
|
|
|
$
|
8,812
|
|
$
|
8,830
|
|
Liabilities
|
|
|
|
|
|
||||||||
Borrowings(a)(b)(c)
|
107,526
|
|
109,822
|
|
|
109,930
|
|
106,221
|
|
||||
Investment contracts(d)
|
2,335
|
|
2,586
|
|
|
2,388
|
|
2,630
|
|
(a)
|
See Note 11.
|
(b)
|
Included $
1,174
million and $
1,361
million of accrued interest in estimated fair value at
March 31, 2019
and
December 31, 2018
, respectively.
|
(c)
|
Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at
March 31, 2019
and
December 31, 2018
would be reduced by $
1,533
million and $
1,300
million, respectively.
|
(d)
|
See Note 12.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FAIR VALUE OF DERIVATIVES
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||
(In millions)
|
Gross Notional(a)
|
|
Assets
|
|
Liabilities
|
|
|
Gross Notional(a)
|
|
Assets
|
|
Liabilities
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Derivatives accounted for as hedges
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
$
|
21,830
|
|
$
|
1,530
|
|
$
|
24
|
|
|
$
|
22,904
|
|
$
|
1,335
|
|
$
|
23
|
|
Currency exchange contracts
|
7,128
|
|
115
|
|
110
|
|
|
7,970
|
|
175
|
|
121
|
|
||||||
|
$
|
28,958
|
|
$
|
1,645
|
|
$
|
135
|
|
|
$
|
30,873
|
|
$
|
1,511
|
|
$
|
145
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives not accounted for as hedges
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
$
|
7,547
|
|
$
|
28
|
|
$
|
1
|
|
|
$
|
6,198
|
|
$
|
28
|
|
$
|
2
|
|
Currency exchange contracts
|
78,808
|
|
685
|
|
1,035
|
|
|
83,841
|
|
727
|
|
1,546
|
|
||||||
Other contracts
|
2,541
|
|
37
|
|
135
|
|
|
2,622
|
|
13
|
|
209
|
|
||||||
|
$
|
88,896
|
|
$
|
750
|
|
$
|
1,171
|
|
|
$
|
92,662
|
|
$
|
769
|
|
$
|
1,757
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross derivatives recognized in statement of financial position
|
|
|
|
|
|
|
|
||||||||||||
Gross derivatives
|
$
|
117,854
|
|
$
|
2,395
|
|
$
|
1,306
|
|
|
$
|
123,535
|
|
$
|
2,279
|
|
$
|
1,902
|
|
Gross accrued interest
|
|
133
|
|
10
|
|
|
|
209
|
|
6
|
|
||||||||
|
|
$
|
2,528
|
|
$
|
1,315
|
|
|
|
$
|
2,489
|
|
$
|
1,908
|
|
||||
|
|
|
|
|
|
|
|
||||||||||||
Amounts offset in statement of financial position
|
|
|
|
|
|
|
|
||||||||||||
Netting adjustments(b)
|
|
$
|
(828
|
)
|
$
|
(829
|
)
|
|
|
$
|
(963
|
)
|
$
|
(971
|
)
|
||||
Cash collateral(c)
|
|
(1,034
|
)
|
(168
|
)
|
|
|
(1,042
|
)
|
(267
|
)
|
||||||||
|
|
$
|
(1,862
|
)
|
$
|
(997
|
)
|
|
|
$
|
(2,005
|
)
|
$
|
(1,238
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||||||
Net derivatives recognized in statement of financial position
|
|
|
|
|
|
|
|
||||||||||||
Net derivatives
|
|
$
|
666
|
|
$
|
318
|
|
|
|
$
|
483
|
|
$
|
670
|
|
||||
|
|
|
|
|
|
|
|
||||||||||||
Amounts not offset in statement of financial position
|
|
|
|
|
|
|
|
||||||||||||
Securities held as collateral(d)
|
|
$
|
(326
|
)
|
$
|
—
|
|
|
|
$
|
(235
|
)
|
$
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||||||
Net amount(e)
|
|
$
|
340
|
|
$
|
318
|
|
|
|
$
|
248
|
|
$
|
670
|
|
(a)
|
Total gross notional at March 31, 2019 comprises
$75,714 million
in GE Capital and
$42,139 million
in GE and at December 31, 2018 comprises
$79,082 million
in GE Capital and
$44,453 million
in GE. GE Capital notional relates primarily to managing interest rate and currency risk between financial assets and liabilities, and GE notional relates primarily to managing currency risk.
|
(b)
|
Netting 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, which, at
March 31, 2019
and
December 31, 2018
, was insignificant.
|
(c)
|
Excluded excess cash collateral received and posted of
$41 million
and
$239 million
at
March 31, 2019
, respectively, and
$3 million
and
$439 million
at
December 31, 2018
, respectively. Excess cash collateral posted includes initial margin for cleared trades.
|
(d)
|
Excluded excess securities collateral received of
$50 million
and
zero
at
March 31, 2019
and
December 31, 2018
, respectively.
|
(e)
|
At March 31, 2019, our exposures to counterparties (including accrued interest), net of collateral we held, was
$256 million
. Counterparties' exposures to our derivative liability (including accrued interest), net of collateral posted by us, was
$281 million
at March 31, 2019. These exposures exclude embedded derivatives.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
Gain (loss) recognized in AOCI
|
|
Gain (loss) reclassified
from AOCI into earnings |
||||||||||
|
for the three months ended March 31
|
|
for the three months ended March 31
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||
|
|
|
|
|
|
|
|||||||
Interest rate contracts
|
$
|
4
|
|
$
|
(4
|
)
|
|
$
|
(3
|
)
|
$
|
(2
|
)
|
Currency exchange contracts
|
43
|
|
146
|
|
|
3
|
|
66
|
|
||||
Total
|
$
|
47
|
|
$
|
142
|
|
|
$
|
—
|
|
$
|
65
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
Three months ended March 31, 2019
|
|
Three months ended March 31, 2018
|
||||||||||||||||||||||||||||
(In millions)
|
Sales
|
Cost of sales
|
Interest and other financial charges
|
SG&A
|
Revenues from financial services
|
|
Sales
|
Cost of sales
|
Interest and other financial charges
|
SG&A
|
Revenues from financial services
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Total amounts of line items presented in the Consolidated Statement of Earnings (Loss) in which the effects are recorded
|
$
|
25,342
|
|
$
|
20,353
|
|
$
|
1,133
|
|
$
|
4,146
|
|
$
|
1,944
|
|
|
$
|
26,002
|
|
$
|
20,911
|
|
$
|
1,282
|
|
$
|
4,088
|
|
$
|
1,786
|
|
Cash Flow Hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Gain/(loss) reclassified from AOCI into income
|
$
|
—
|
|
$
|
—
|
|
$
|
(6
|
)
|
$
|
—
|
|
$
|
3
|
|
|
|
|
$
|
(5
|
)
|
|
$
|
3
|
|
||||||
Currency exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Gain/(loss) reclassified from AOCI into income
|
(1
|
)
|
(9
|
)
|
(4
|
)
|
(1
|
)
|
17
|
|
|
4
|
|
6
|
|
(5
|
)
|
|
61
|
|
|||||||||||
Total effect of cash flow hedges
|
$
|
(1
|
)
|
$
|
(9
|
)
|
$
|
(10
|
)
|
$
|
(1
|
)
|
$
|
21
|
|
|
$
|
4
|
|
$
|
6
|
|
$
|
(10
|
)
|
|
$
|
64
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Fair Value Hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Hedged items
|
|
|
$
|
(527
|
)
|
|
|
|
|
|
|
|
$
|
672
|
|
||||||||||||||||
Derivatives designated as hedging instruments
|
|
|
515
|
|
|
|
|
|
|
|
|
(697
|
)
|
||||||||||||||||||
Total effect of fair value hedges
|
|
|
$
|
(11
|
)
|
|
|
|
|
|
|
|
$
|
(26
|
)
|
|
Three months ended March 31, 2019
|
|
Three months ended March 31, 2018
|
||||||||||||||||||||||||||||
(In millions)
|
Revenues from financial services
|
Cost of sales
|
Interest and other financial charges
|
SG&A
|
Other Income
|
|
Revenues from financial services
|
Cost of sales
|
Interest and other financial charges
|
SG&A
|
Other Income
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Interest rate contracts
|
$
|
(20
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
(14
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Currency exchange contracts
|
453
|
|
8
|
|
(63
|
)
|
(45
|
)
|
3
|
|
|
653
|
|
7
|
|
(69
|
)
|
(130
|
)
|
51
|
|
||||||||||
Other
|
—
|
|
—
|
|
96
|
|
—
|
|
14
|
|
|
(5
|
)
|
|
(35
|
)
|
|
9
|
|
||||||||||||
Total(a)
|
$
|
433
|
|
$
|
8
|
|
$
|
33
|
|
$
|
(45
|
)
|
$
|
17
|
|
|
$
|
634
|
|
$
|
7
|
|
$
|
(104
|
)
|
$
|
(130
|
)
|
$
|
60
|
|
(a)
|
Substantially all of the gain or loss recognized in earnings is offset by either the current period change in value of the item being hedged which is recorded in earnings in the current period or a future period for hedges of future exposures.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
ASSETS AND LIABILTIES OF CONSOLIDATED VIES
(In millions)
|
March 31, 2019
|
December 31, 2018
|
||||
|
|
|
||||
Assets
|
|
|
||||
Financing receivables, net
|
$
|
2,423
|
|
$
|
2,704
|
|
Current receivables
|
451
|
|
496
|
|
||
Investment securities
|
35
|
|
35
|
|
||
Other assets
|
1,996
|
|
2,367
|
|
||
Total
|
$
|
4,906
|
|
$
|
5,601
|
|
|
|
|
||||
Liabilities
|
|
|
||||
Borrowings
|
$
|
754
|
|
$
|
850
|
|
Non-recourse borrowings
|
1,350
|
|
1,875
|
|
||
Other liabilities
|
2,010
|
|
1,801
|
|
||
Total
|
$
|
4,114
|
|
$
|
4,526
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
Three months ended March 31
|
|||||
(In millions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Balance at January 1
|
$
|
2,428
|
|
$
|
2,268
|
|
Current-year provisions
|
164
|
|
236
|
|
||
Expenditures
|
(158
|
)
|
(221
|
)
|
||
Other changes
|
1
|
|
149
|
|
||
Balance as of March 31
|
$
|
2,435
|
|
$
|
2,431
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
Three months ended March 31
|
|||||
(In millions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
All other operating activities
|
|
|
||||
Increase (decrease) in employee benefit liabilities
|
$
|
(556
|
)
|
$
|
(369
|
)
|
Other gains on investing activities
|
(63
|
)
|
(72
|
)
|
||
Restructuring and other charges(a)
|
(21
|
)
|
155
|
|
||
Increase (decrease) in equipment project accruals
|
54
|
|
(577
|
)
|
||
Other(b)
|
(72
|
)
|
(503
|
)
|
||
|
$
|
(658
|
)
|
$
|
(1,366
|
)
|
All other investing activities
|
|
|
||||
Derivative settlements (net)
|
$
|
24
|
|
$
|
(163
|
)
|
Investments in intangible assets (net)
|
(3
|
)
|
(584
|
)
|
||
Other(c)
|
(323
|
)
|
89
|
|
||
|
$
|
(302
|
)
|
$
|
(658
|
)
|
All other financing activities
|
|
|
||||
Acquisition of noncontrolling interests
|
$
|
(28
|
)
|
$
|
(394
|
)
|
Dividends paid to noncontrolling interests
|
(123
|
)
|
(79
|
)
|
||
Other
|
2
|
|
4
|
|
||
|
$
|
(149
|
)
|
$
|
(469
|
)
|
(a)
|
Reflected the effects of restructuring and other charges of $
325 million
and
$593 million
and restructuring and other cash expenditures of
$(346) million
and
$(438) million
for the
three months ended
March 31
, 2019 and 2018, respectively. Excludes non-cash adjustments reflected as "Depreciation and amortization of property, plant and equipment" or "Amortization of intangible assets" in the Statement of Cash Flows.
|
(b)
|
Included other adjustments to net income, such as write-downs of assets and the impacts of acquisition accounting and changes in other assets and other liabilities classified as operating activities, such as the timing of payments of customer allowances.
|
(c)
|
Other primarily included net activity related to settlements between our continuing operations and businesses in discontinued operations.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
•
|
GE Capital working capital services to GE, including current receivables and supply chain finance programs
,
|
•
|
GE Capital enabled GE industrial orders, including related GE guarantees to GE Capital,
|
•
|
GE Capital financing of GE long-term receivables, and
|
•
|
Aircraft engines, power equipment and
renewable energy equipment
manufactured by GE that are installed on GE Capital investments, including leased equipment.
|
•
|
Expenses related to parent-subsidiary pension plans,
|
•
|
Buildings and equipment leased between GE and GE Capital, including sale-leaseback transactions,
|
•
|
Information technology (IT) and other services sold to GE Capital by GE
|
•
|
Settlements of tax liabilities, and
|
•
|
Various investments, loans and allocations of GE corporate overhead costs.
|
|
Three months ended March 31
|
|||||
(In millions)
|
2019
|
|
2018
|
|
||
|
|
|
|
|
||
Cash from (used for) operating activities - continuing operations
|
|
|
|
|
||
Combined
|
$
|
(834
|
)
|
$
|
(578
|
)
|
GE current receivables sold to GE Capital(a)
|
537
|
|
788
|
|
||
GE long-term receivables sold to GE Capital
|
174
|
|
108
|
|
||
Other reclassifications and eliminations(b)
|
280
|
|
(1
|
)
|
||
Total cash from (used for) operating activities - continuing operations
|
$
|
157
|
|
$
|
317
|
|
Cash from (used for) investing activities - continuing operations
|
|
|
||||
Combined
|
$
|
5,756
|
|
$
|
1,062
|
|
GE current receivables sold to GE Capital(a)
|
(1,306
|
)
|
(1,344
|
)
|
||
GE long-term receivables sold to GE Capital
|
(174
|
)
|
(108
|
)
|
||
GE Capital long-term loan to GE
|
—
|
|
285
|
|
||
Other reclassifications and eliminations(b)
|
(886
|
)
|
(374
|
)
|
||
Total cash from (used for) investing activities - continuing operations
|
$
|
3,390
|
|
$
|
(479
|
)
|
Cash from (used for) financing activities - continuing operations
|
|
|
||||
Combined
|
$
|
(4,941
|
)
|
$
|
(12,536
|
)
|
GE current receivables sold to GE Capital(a)
|
769
|
|
556
|
|
||
GE Capital long-term loan to GE
|
—
|
|
(285
|
)
|
||
Other reclassifications and eliminations(b)
|
607
|
|
375
|
|
||
Total cash from (used for) financing activities - continuing operations
|
$
|
(3,565
|
)
|
$
|
(11,890
|
)
|
(a)
|
Excludes
$61 million
and
$1,120 million
related to cash payments received on the Receivable facility DPP in the three months ended March 31, 2019 and 2018 respectively, which are reflected as Cash from investing activities in the GE Capital and the consolidated GE Company columns of our Statement of Cash Flows. Sales of current receivables from GE to GE Capital are classified as Cash from operating activities in the GE column of our Statement of Cash Flows. See Note 4.
|
(b)
|
Includes eliminations of other cash flows activities, including financing of supply chain finance programs of $
323 million
and
$
305 million
in the three months ended March 31, 2019 and 2018 respectively, and various investments, loans and allocations of GE corporate overhead costs.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
•
|
General Electric Company (the Parent Company Guarantor)
– prepared with investments in subsidiaries accounted for under the equity method of accounting and excluding any inter-segment eliminations;
|
•
|
GE Capital International Funding Company Unlimited Company (the Subsidiary Issuer)
– finance subsidiary that issued the guaranteed notes for debt;
|
•
|
GE Capital International Holdings Limited (GECIHL)
(the Subsidiary Guarantor)
– prepared with investments in non-guarantor subsidiaries accounted for under the equity method of accounting;
|
•
|
Non-Guarantor Subsidiaries
– prepared on an aggregated basis excluding any elimination or consolidation adjustments and includes predominantly all non-cash adjustments for cash flows;
|
•
|
Consolidating Adjustments
– adjusting entries necessary to consolidate the Parent Company Guarantor with the Subsidiary Issuer, the Subsidiary Guarantor and Non-Guarantor Subsidiaries and in the comparative periods, this category includes the impact of new accounting policies adopted as described in Note 1; and
|
•
|
Consolidated
– prepared on a consolidated basis.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2019 (UNAUDITED)
|
||||||||||||||||||
|
||||||||||||||||||
(In millions)
|
Parent
Company
Guarantor
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Consolidated
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Revenues
|
|
|
|
|
|
|
||||||||||||
Sales of goods and services
|
$
|
4,580
|
|
$
|
—
|
|
$
|
—
|
|
$
|
38,456
|
|
$
|
(17,694
|
)
|
$
|
25,342
|
|
GE Capital revenues from services
|
—
|
|
233
|
|
75
|
|
2,580
|
|
(944
|
)
|
1,944
|
|
||||||
Total revenues
|
4,580
|
|
233
|
|
75
|
|
41,035
|
|
(18,638
|
)
|
27,286
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Costs and expenses
|
|
|
|
|
|
|
||||||||||||
Interest and other financial charges
|
2,316
|
|
231
|
|
379
|
|
1,977
|
|
(3,770
|
)
|
1,133
|
|
||||||
Other costs and expenses
|
6,557
|
|
—
|
|
—
|
|
37,480
|
|
(18,281
|
)
|
25,757
|
|
||||||
Total costs and expenses
|
8,873
|
|
231
|
|
380
|
|
39,457
|
|
(22,051
|
)
|
26,889
|
|
||||||
Other income (loss)
|
(6,740
|
)
|
—
|
|
—
|
|
16,963
|
|
(9,344
|
)
|
878
|
|
||||||
Equity in earnings (loss) of affiliates
|
14,926
|
|
—
|
|
375
|
|
11,013
|
|
(26,315
|
)
|
—
|
|
||||||
Earnings (loss) from continuing operations before income taxes
|
3,893
|
|
3
|
|
71
|
|
29,555
|
|
(32,246
|
)
|
1,275
|
|
||||||
Benefit (provision) for income taxes
|
(335
|
)
|
—
|
|
—
|
|
(658
|
)
|
772
|
|
(222
|
)
|
||||||
Earnings (loss) from continuing operations
|
3,558
|
|
2
|
|
71
|
|
28,896
|
|
(31,475
|
)
|
1,053
|
|
||||||
Earnings (loss) from discontinued operations, net of taxes
|
30
|
|
—
|
|
—
|
|
—
|
|
2,562
|
|
2,592
|
|
||||||
Net earnings (loss)
|
3,588
|
|
2
|
|
71
|
|
28,896
|
|
(28,912
|
)
|
3,645
|
|
||||||
Less net earnings (loss) attributable to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
58
|
|
57
|
|
||||||
Net earnings (loss) attributable to the Company
|
3,588
|
|
2
|
|
71
|
|
28,897
|
|
(28,970
|
)
|
3,588
|
|
||||||
Other comprehensive income (loss)
|
929
|
|
—
|
|
(1,082
|
)
|
(443
|
)
|
1,524
|
|
930
|
|
||||||
Comprehensive income (loss) attributable to the Company
|
$
|
4,517
|
|
$
|
2
|
|
$
|
(1,011
|
)
|
$
|
28,454
|
|
$
|
(27,446
|
)
|
$
|
4,517
|
|
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2018 (UNAUDITED)
|
||||||||||||||||||
|
||||||||||||||||||
(in millions)
|
Parent
Company
Guarantor
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Consolidated
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Revenues
|
|
|
|
|
|
|
||||||||||||
Sales of goods and services
|
$
|
7,704
|
|
$
|
—
|
|
$
|
—
|
|
$
|
37,980
|
|
$
|
(19,682
|
)
|
$
|
26,002
|
|
GE Capital revenues from services
|
—
|
|
208
|
|
226
|
|
1,557
|
|
(205
|
)
|
1,786
|
|
||||||
Total revenues
|
7,704
|
|
208
|
|
226
|
|
39,538
|
|
(19,887
|
)
|
27,788
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Costs and expenses
|
|
|
|
|
|
|
||||||||||||
Interest and other financial charges
|
1,380
|
|
206
|
|
547
|
|
1,263
|
|
(2,115
|
)
|
1,282
|
|
||||||
Other costs and expenses
|
8,137
|
|
—
|
|
—
|
|
38,143
|
|
(19,846
|
)
|
26,434
|
|
||||||
Total costs and expenses
|
9,517
|
|
206
|
|
547
|
|
39,407
|
|
(21,962
|
)
|
27,716
|
|
||||||
Other income (loss)
|
275
|
|
—
|
|
—
|
|
(1,873
|
)
|
1,802
|
|
204
|
|
||||||
Equity in earnings (loss) of affiliates
|
2,592
|
|
—
|
|
620
|
|
(159
|
)
|
(3,054
|
)
|
—
|
|
||||||
Earnings (loss) from continuing operations before income taxes
|
1,054
|
|
2
|
|
299
|
|
(1,901
|
)
|
823
|
|
277
|
|
||||||
Benefit (provision) for income taxes
|
(648
|
)
|
—
|
|
—
|
|
600
|
|
99
|
|
50
|
|
||||||
Earnings (loss) from continuing operations
|
406
|
|
2
|
|
299
|
|
(1,301
|
)
|
922
|
|
328
|
|
||||||
Earnings (loss) from discontinued operations, net of taxes
|
(1,553
|
)
|
—
|
|
(17
|
)
|
1
|
|
128
|
|
(1,441
|
)
|
||||||
Net earnings (loss)
|
(1,147
|
)
|
2
|
|
282
|
|
(1,300
|
)
|
1,050
|
|
(1,113
|
)
|
||||||
Less net earnings (loss) attributable to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
(5
|
)
|
39
|
|
34
|
|
||||||
Net earnings (loss) attributable to the Company
|
(1,147
|
)
|
2
|
|
282
|
|
(1,294
|
)
|
1,011
|
|
(1,147
|
)
|
||||||
Other comprehensive income (loss)
|
1,542
|
|
—
|
|
39
|
|
878
|
|
(917
|
)
|
1,542
|
|
||||||
Comprehensive income (loss) attributable to the Company
|
$
|
395
|
|
$
|
2
|
|
$
|
321
|
|
$
|
(416
|
)
|
$
|
94
|
|
$
|
395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION
|
||||||||||||||||||
MARCH 31, 2019 (UNAUDITED)
|
||||||||||||||||||
|
||||||||||||||||||
(In millions)
|
Parent
Company
Guarantor
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Consolidated
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
||||||||||||
Cash, cash equivalents and restricted cash
|
$
|
9,541
|
|
$
|
—
|
|
$
|
—
|
|
$
|
25,949
|
|
$
|
(585
|
)
|
$
|
34,905
|
|
Receivables - net
|
26,339
|
|
17,717
|
|
2,979
|
|
62,698
|
|
(76,312
|
)
|
33,422
|
|
||||||
Investment in subsidiaries(a)
|
223,211
|
|
—
|
|
45,002
|
|
718,299
|
|
(986,512
|
)
|
—
|
|
||||||
All other assets
|
31,676
|
|
12
|
|
—
|
|
372,836
|
|
(157,768
|
)
|
246,755
|
|
||||||
Total assets
|
$
|
290,767
|
|
$
|
17,729
|
|
$
|
47,982
|
|
$
|
1,179,781
|
|
$
|
(1,221,177
|
)
|
$
|
315,082
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and equity
|
|
|
|
|
|
|
||||||||||||
Short-term borrowings
|
$
|
160,578
|
|
$
|
—
|
|
$
|
10,867
|
|
$
|
9,748
|
|
$
|
(165,241
|
)
|
$
|
15,953
|
|
Long-term and non-recourse borrowings
|
49,405
|
|
16,297
|
|
23,868
|
|
45,257
|
|
(43,253
|
)
|
91,573
|
|
||||||
All other liabilities
|
45,624
|
|
385
|
|
111
|
|
146,141
|
|
(40,766
|
)
|
151,494
|
|
||||||
Total Liabilities
|
255,606
|
|
16,682
|
|
34,846
|
|
201,146
|
|
(249,260
|
)
|
259,020
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Total liabilities, redeemable noncontrolling interests and equity
|
$
|
290,767
|
|
$
|
17,729
|
|
$
|
47,982
|
|
$
|
1,179,781
|
|
$
|
(1,221,177
|
)
|
$
|
315,082
|
|
(a)
|
Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of
$7,214 million
and net assets of discontinued operations of
$3,010 million
.
|
CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION
|
||||||||||||||||||
DECEMBER 31, 2018
|
||||||||||||||||||
|
||||||||||||||||||
(In millions)
|
Parent
Company
Guarantor
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Consolidated
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
||||||||||||
Cash, cash equivalents and restricted cash
|
$
|
9,561
|
|
$
|
—
|
|
$
|
—
|
|
$
|
25,975
|
|
$
|
(689
|
)
|
$
|
34,847
|
|
Receivables - net
|
28,426
|
|
17,467
|
|
2,792
|
|
69,268
|
|
(84,095
|
)
|
33,857
|
|
||||||
Investment in subsidiaries(a)
|
215,434
|
|
—
|
|
45,832
|
|
733,535
|
|
(994,801
|
)
|
—
|
|
||||||
All other assets
|
29,612
|
|
12
|
|
—
|
|
359,066
|
|
(147,810
|
)
|
240,880
|
|
||||||
Total assets
|
$
|
283,033
|
|
$
|
17,479
|
|
$
|
48,623
|
|
$
|
1,187,844
|
|
$
|
(1,227,394
|
)
|
$
|
309,585
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and equity
|
|
|
|
|
|
|
||||||||||||
Short-term borrowings
|
$
|
150,426
|
|
$
|
—
|
|
$
|
9,854
|
|
$
|
9,649
|
|
$
|
(157,108
|
)
|
$
|
12,821
|
|
Long-term and non-recourse borrowings
|
59,800
|
|
16,115
|
|
24,341
|
|
41,066
|
|
(44,213
|
)
|
97,109
|
|
||||||
All other liabilities
|
41,826
|
|
336
|
|
245
|
|
152,889
|
|
(47,504
|
)
|
147,792
|
|
||||||
Total Liabilities
|
252,052
|
|
16,452
|
|
34,439
|
|
203,604
|
|
(248,825
|
)
|
257,722
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Total liabilities, redeemable noncontrolling interests and equity
|
$
|
283,033
|
|
$
|
17,479
|
|
$
|
48,623
|
|
$
|
1,187,844
|
|
$
|
(1,227,394
|
)
|
$
|
309,585
|
|
(a)
|
Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of
$6,892 million
and net assets of discontinued operations of
$3,482 million
.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
|
||||||||||||||||||
THREE MONTHS ENDED MARCH 31, 2019 (UNAUDITED)
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||
(In millions)
|
Parent
Company
Guarantor
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Consolidated
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Cash from (used for) operating activities(a)
|
$
|
(6,630
|
)
|
$
|
611
|
|
$
|
(1,063
|
)
|
$
|
19,123
|
|
$
|
(11,999
|
)
|
$
|
42
|
|
|
|
|
|
|
|
|
||||||||||||
Cash from (used for) investing activities
|
$
|
7,165
|
|
$
|
(611
|
)
|
$
|
(61
|
)
|
$
|
10,259
|
|
$
|
(13,311
|
)
|
$
|
3,442
|
|
|
|
|
|
|
|
|
||||||||||||
Cash from (used for) financing activities
|
$
|
(555
|
)
|
$
|
—
|
|
$
|
1,124
|
|
$
|
(29,416
|
)
|
$
|
25,240
|
|
$
|
(3,607
|
)
|
|
|
|
|
|
|
|
||||||||||||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash
|
—
|
|
—
|
|
—
|
|
78
|
|
—
|
|
78
|
|
||||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
(20
|
)
|
—
|
|
—
|
|
44
|
|
(70
|
)
|
(45
|
)
|
||||||
Cash, cash equivalents and restricted cash at beginning of year
|
9,561
|
|
—
|
|
1
|
|
26,502
|
|
(516
|
)
|
35,548
|
|
||||||
Cash, cash equivalents and restricted cash at March 31
|
9,541
|
|
—
|
|
—
|
|
26,547
|
|
(585
|
)
|
35,503
|
|
||||||
Less cash, cash equivalents and restricted cash of discontinued operations at March 31
|
—
|
|
—
|
|
—
|
|
598
|
|
—
|
|
598
|
|
||||||
Cash, cash equivalents and restricted cash of continuing operations at March 31
|
$
|
9,541
|
|
$
|
—
|
|
$
|
—
|
|
$
|
25,949
|
|
$
|
(585
|
)
|
$
|
34,905
|
|
(a)
|
Parent Company Guarantor cash flows included cash from (used for) operating activities of discontinued operations of
$(2,946) million
.
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
|
||||||||||||||||||
THREE MONTHS ENDED MARCH 31, 2018 (UNAUDITED)
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||
(In millions)
|
Parent
Company
Guarantor
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Consolidated
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Cash from (used for) operating activities(a)
|
$
|
17,593
|
|
$
|
146
|
|
$
|
(427
|
)
|
$
|
(16,722
|
)
|
$
|
(278
|
)
|
$
|
312
|
|
|
|
|
|
|
|
|
||||||||||||
Cash from (used for) investing activities
|
$
|
6,994
|
|
$
|
(75
|
)
|
$
|
(788
|
)
|
$
|
(14,924
|
)
|
$
|
8,228
|
|
$
|
(566
|
)
|
|
|
|
|
|
|
|
||||||||||||
Cash from (used for) financing activities
|
$
|
(28,041
|
)
|
$
|
(70
|
)
|
$
|
1,214
|
|
$
|
22,974
|
|
$
|
(7,977
|
)
|
$
|
(11,899
|
)
|
|
|
|
|
|
|
|
||||||||||||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash
|
—
|
|
—
|
|
—
|
|
208
|
|
—
|
|
208
|
|
||||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
(3,454
|
)
|
—
|
|
—
|
|
(8,464
|
)
|
(27
|
)
|
(11,945
|
)
|
||||||
Cash, cash equivalents and restricted cash at beginning of year
|
3,472
|
|
—
|
|
3
|
|
41,993
|
|
(743
|
)
|
44,724
|
|
||||||
Cash, cash equivalents and restricted cash at March 31
|
18
|
|
—
|
|
3
|
|
33,529
|
|
(770
|
)
|
32,779
|
|
||||||
Less cash, cash equivalents and restricted cash of discontinued operations at March 31
|
—
|
|
—
|
|
—
|
|
779
|
|
—
|
|
779
|
|
||||||
Cash, cash equivalents and restricted cash of continuing operations at March 31
|
$
|
18
|
|
$
|
—
|
|
$
|
3
|
|
$
|
32,750
|
|
$
|
(770
|
)
|
$
|
32,000
|
|
(a)
|
Parent Company Guarantor cash flows included cash from (used for) operating activities of discontinued operations of
$(2,383) million
.
|
OTHER ITEMS
|
|
|
•
|
Continuing earnings
– we refer to the caption “earnings from continuing operations attributable to GE common shareowners” as continuing earnings.
|
•
|
Continuing earnings per share (EPS)
– when we refer to continuing earnings per share, it is the diluted per-share amount of “earnings from continuing operations attributable to GE common shareowners.”
|
•
|
GE Cash Flows from Operating Activities (GE CFOA)
- unless otherwise indicated, GE CFOA is from continuing operations.
|
•
|
Net earnings (loss)
– we refer to the caption “net earnings (loss) attributable to GE common shareowners” as net earnings.
|
•
|
Net earnings (loss) per share (EPS)
– when we refer to net earnings (loss) per share, it is the diluted per-share amount of “net earnings attributable to GE common shareowners.”
|
•
|
Segment profit
– refers to the profit of the industrial segments and the net earnings of the financial services segment, both of which include other income. See the Segment Operations section within the MD&A for a description of the basis for segment profits.
|
•
|
Organic
– We integrate acquisitions as quickly as possible. Revenues and earnings from the date we complete the acquisition through the end of the fourth quarter following the acquisition are considered the acquisition effect of such businesses.
|
•
|
Product services agreements
– contractual commitments, with multiple-year terms, to provide specified services for products in our Power, Renewable Energy, Aviation, Oil & Gas and Transportation installed base – for example, monitoring, maintenance, service and spare parts for a gas turbine/generator set installed in a customer’s power plant. See Revenues from Services section within Note 1 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2018 for further information.
|
•
|
Services
– for purposes of the financial statement display of sales and costs of sales in our consolidated Statement of Earnings (Loss), “goods” is required by SEC regulations to include all sales of tangible products, and "services" must include all other sales, including other services activities. In our MD&A section of this report, we refer to sales under product services agreements and sales of both goods (such as spare parts and equipment upgrades) and related services (such as monitoring, maintenance and repairs) as sales of “services,” which is an important part of our operations.
|
OTHER ITEMS
|
|
|
(a)
|
There have been no significant changes to our market risk since
December 31, 2018
. For a discussion of our exposure to market risk, refer to our Annual Report on Form 10-K for the year ended
December 31, 2018
.
|
April 30, 2019
|
|
/s/ Thomas S. Timko
|
Date
|
|
Thomas S. Timko
Vice President, Chief Accounting Officer and Controller
Principal Accounting Officer
|
Grant Date
|
PSUs Granted
|
Restriction Lapse Date
|
<<Date>>
|
<<No. of PSUs Granted>>
|
The date of the February 2022 Management Development & Compensation Committee meeting, subject to the terms and conditions set forth below.
|
1.
|
Grant.
The Management Development and Compensation Committee (“Committee”) of the Board of Directors of General Electric Company (“Company”) has granted the above number of Performance Stock Units, from time to time with Dividend Equivalents as the Committee may determine (“PSUs”) to the individual named in this grant agreement (“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 (including subparagraph 3.1) lapse in accordance with their terms, each in accordance with the terms of this Grant Agreement, the GE 2007 Long-Term Incentive Plan (“Plan”), country addendums and any rules, procedures and sub-plans 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.
Restrictions on the number of PSUs specified in this Grant Agreement, as further subject to and adjusted based on performance as set forth in subparagraph 3.1 (“Adjusted PSUs”), will lapse on the designated Restriction Lapse Date only if the Grantee has been continuously employed by the Company and its Affiliates (as defined below) to such date. PSUs shall be immediately cancelled upon termination of employment, except as follows:
|
a.
|
Employment Termination Due to Death.
If the Grantee’s employment with the Company and its Affiliates (as defined below) terminates as a result of the Grantee’s death, then restrictions on all Adjusted PSUs shall lapse on the designated Restriction Lapse Date.
|
b.
|
Employment Termination Due to Transfer of Business to Successor Employer.
If the Grantee’s employment with the Company and its Affiliates (as defined below) terminates as a result of employment by a successor employer to which the Company has transferred a business operation, then restrictions on all Adjusted PSUs shall lapse on the designated Restriction Lapse Date.
|
c.
|
Employment Termination Less Than One Year After Grant Date.
If the Grantee's employment with the Company and its Affiliates (as defined below) terminates before the first anniversary of the Grant Date for any reason other than death or transfer to a successor employer as described in Sections 3(a) and (b) of this Grant Agreement, then all remaining PSUs shall be immediately cancelled.
|
d.
|
Employment Termination More Than One Year After Grant Date.
If, on or after the first anniversary of the Grant Date, the Grantee’s employment with the Company and its Affiliates (as defined below) terminates as a result of any of the reasons set forth below, then restrictions on Adjusted PSUs shall lapse on the designated Restriction Lapse Date or the PSUs shall be cancelled as provided below:
|
i.
|
Termination/Eligibility for Retirement or Termination for Total Disability.
Restrictions on all Adjusted PSUs shall lapse on the designated Restriction Lapse Date if (a) the Grantee attains at least age 60 and completes 5 or more years of continuous service with the Company and its Affiliates (as defined below), or (b) the Grantee’s employment with the Company and its Affiliates (as defined below) terminates as a result of a total disability, i.e., the inability to perform any job for which the Grantee is reasonably suited by means of education, training or experience.
|
ii.
|
Voluntary Termination or Termination for Cause.
If the Grantee's employment with the Company and its Affiliates (as defined below) is voluntarily terminated by the Grantee (and is not a retirement under
|
iii.
|
Termination for Layoff or Plant Closing.
If the Grantee’s employment with the Company and its Affiliates (as defined below) terminates as a result of a layoff or plant closing (without regard to any period of protected service), each as contemplated by the U.S. GE Layoff Benefit Plan for Salaried Employees, then restrictions on Adjusted PSUs shall lapse on the designated Restriction Lapse Date.
|
iv.
|
Termination Due to Other Reasons.
If the Grantee’s employment with the Company and its Affiliates (as defined below) terminates for any other reason, and the Grantee and the Company have not entered into a written agreement explicitly providing otherwise in accordance with rules and procedures adopted by the Committee, then the PSUs shall be immediately cancelled.
|
e.
|
Affiliate.
For purposes of this Grant Agreement, “Affiliate” shall have the meaning set forth in the Plan. That is, an “Affiliate” shall mean (i) any entity that, directly or indirectly, is owned 50% or more by the Company and thereby deemed under its control and (ii) any entity in which the Company has a significant equity interest as determined by the Committee. Transfer of employment among the Company and its Affiliates is not a termination of employment for purposes of this Grant.
|
f.
|
Vesting.
The Committee or its delegates may modify the vesting of any Options in its discretion, consistent with applicable law.
|
a.
|
If the Company’s Total Shareowner % Return (“TSR”) is equal to the 55th percentile (“target”) of the Total Shareowner % Return for the S&P 500 companies (“S&P 500 TSR”), then 100% of the PSUs shall be eligible for the lapse of restrictions.
|
b.
|
If the Company TSR is equal to the 35th percentile (“threshold”) of the S&P 500 TSR, then one-quarter (25%) of the PSUs shall be eligible for the lapse of restrictions. All PSUs shall be cancelled if Company TSR is less than Threshold performance.
|
c.
|
If the Company TSR is equal to or exceeds the 80th percentile (“maximum”) of the S&P 500 TSR, then the PSUs to be eligible for the lapse of restrictions shall be adjusted upward by 75% (175%).
|
4.
|
Delivery and Withholding Tax.
As soon as practicable following the Restriction Lapse Date, but in no event later than March 15, 2022, the Company shall deliver such number shares of GE common stock underlying the Adjusted PSUs for which restrictions have lapsed in accordance with the terms in paragraphs 3 and 3.1, to the Grantee electronically through the Grantee’s brokerage account or in another manner determined by the Company; provided however, that the date of issuance or delivery may be postponed by the Company for such period as may be required for it with reasonable diligence to comply with any applicable listing requirements of any national securities exchange and requirements under any law or regulation applicable to the issuance or transfer of such shares. Further, the Grantee shall pay to or reimburse the Company, through the broker selected by the Company, for any federal, state, local or foreign taxes required to be withheld and paid over by it, at such time and upon such terms and conditions as the Company may prescribe before the Company shall be required to deliver such shares.
|
5.
|
Alteration/Termination.
Under the express terms of this Grant Agreement, 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. Furthermore, the PSUs provided under this Grant Agreement shall be subject to the Company’s policy with respect to the compensation recoupment, in effect as of the date of this Grant Agreement and as amended from time to time. Also, the PSUs shall be null and void to the extent the grant of PSUs or the lapse of restrictions thereon is prohibited under the laws of the country of residence of the Grantee.
|
6.
|
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. This Grant Agreement is subject to the terms and provisions of the Plan, which are incorporated by reference. In the event of any conflict between the provisions of this Grant Agreement and those of the Plan, the provisions of the Plan shall control.
|
7.
|
Entire Agreement.
This Grant Agreement, the Plan, country addendums and any sub-plans, 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 an authorized officer of the Company and delivered to the Grantee.
|
Name:
|
Gene Riego de Dios
|
Title:
|
Executive Director
|
Name:
|
Maria Hackley
|
Name:
|
Mukesh Singh
|
Title:
|
Director
|
Name:
|
Jamie Minieri
|
Title:
|
Authorized Signatory
|
Name:
|
Jamie Minieri
|
Title:
|
Authorized Signatory
|
Name:
|
Christopher Winthrop
|
Title:
|
Vice President
|
Name:
|
John Margetanski
|
Title:
|
Director
|
Name:
|
Richard Pace
|
Title:
|
Managing Director
|
Name:
|
Nanette Baudon
|
Title:
|
Director
|
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/ H. Lawrence Culp, Jr.
|
H. Lawrence Culp, Jr.
|
Chief Executive Officer
|
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/ Jamie S. Miller
|
Jamie S. Miller
|
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/ H. Lawrence Culp, Jr.
|
H. Lawrence Culp, Jr.
|
Chief Executive Officer
|
/s/ Jamie S. Miller
|
Jamie S. Miller
|
Chief Financial Officer
|
Mine or Operating Name/MSHA
Identification Number |
Section
104 S&S Citations |
Section
104(b) Orders |
Section
104(d) Citations and Orders |
Section
110(b)(2) Violations |
Section
107(a) Orders |
Proposed
MSHA Assessments (1) |
Mining
Related Fatalities |
Received
Notice of Pattern of Violations Under Section 104(e) (yes/no) |
Received
Notice of Potential to Have Pattern Under Section 104(e) (yes/no) |
Legal
Actions Pending as of Last Day of Period |
Legal
Actions Initiated During Period |
Legal
Actions Resolved During Period |
|||
Morgan City Grinding Plant/1601357
|
0
|
0
|
0
|
0
|
0
|
$
|
—
|
|
|
0
|
N
|
N
|
0
|
0
|
0
|
Argenta Mine and Mill/2601152
|
1
|
0
|
0
|
0
|
0
|
$
|
196
|
|
|
0
|
N
|
N
|
0
|
0
|
0
|
Corpus Christi Grinding Plant/4103112
|
0
|
0
|
0
|
0
|
0
|
$
|
—
|
|
|
0
|
N
|
N
|
0
|
0
|
0
|
(1)
|
Amounts included are the total dollar value of proposed assessments received from MSHA during the three months ended March 31, 2019, regardless of whether the assessment has been challenged or appealed. Citations and orders can be contested and appealed, and as part of that process, are sometimes reduced in severity and amount, and sometimes dismissed. The number of citations, orders, and proposed assessments vary by inspector and also vary depending on the size and type of the operation.
|