New York
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14-0689340
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||
(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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||
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5 Necco Street,
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Boston
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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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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common stock, par value $0.06 per share
|
GE
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New York Stock Exchange
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Floating Rate Notes due 2020
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GE 20E
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New York Stock Exchange
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0.375% Notes due 2022
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GE 22A
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New York Stock Exchange
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1.250% Notes due 2023
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GE 23E
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New York Stock Exchange
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0.875% Notes due 2025
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GE 25
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New York Stock Exchange
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1.875% Notes due 2027
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GE 27E
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New York Stock Exchange
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1.500% Notes due 2029
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GE 29
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New York Stock Exchange
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7 1/2% Guaranteed Subordinated Notes due 2035
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GE /35
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New York Stock Exchange
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2.125% Notes due 2037
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GE 37
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New York Stock Exchange
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Securities Registered Pursuant to Section 12(g) of the Act:
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(Title of class)
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Large accelerated filer
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☑
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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TABLE OF CONTENTS
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Page
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|
|
About General Electric
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|
Capital Resources and Liquidity
|
|
Non-GAAP Financial Measures
|
|
Risk Factors
|
|
Management and Auditor's Reports
|
|
Audited Financial Statements and Notes
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|
Statement of Earnings (Loss)
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|
Statement of Financial Position
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Statement of Cash Flows
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Statement of Comprehensive Income (Loss)
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Statement of Changes in Shareholders' Equity
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Note 1 Basis of Presentation and Summary of Significant Accounting Policies
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Note 2 Businesses Held for Sale and Discontinued Operations
|
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Note 3 Investment Securities
|
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Note 4 Current and Long-term Receivables
|
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Note 5 Financing Receivables and Allowances
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Note 6 Inventories
|
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Note 7 Property, Plant and Equipment and Operating Leases
|
|
Note 8 Goodwill and Other Intangible Assets
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Note 9 Contract and Other Deferred Assets & Progress Collections and Deferred Income
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Note 10 All Other Assets
|
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Note 11 Borrowings
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Note 12 Insurance Liabilities and Annuity Benefits
|
|
Note 13 Postretirement Benefit Plans
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Note 14 Current and All Other Liabilities
|
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Note 15 Income Taxes
|
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Note 16 Shareholders’ Equity
|
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Note 17 Share-Based Compensation
|
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Note 18 Earnings Per Share Information
|
|
Note 19 Other Income
|
|
Note 20 Fair Value Measurements
|
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Note 21 Financial Instruments
|
|
Note 22 Variable Interest Entities
|
|
Note 23 Commitments, Guarantees, Product Warranties and Other Loss Contingencies
|
|
Note 24 Cash Flows Information
|
|
Note 25 Intercompany Transactions
|
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Note 26 Operating Segments
|
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Note 27 Guarantor Financial Information
|
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Note 28 Baker Hughes Summarized Financial Information
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Note 29 Quarterly Information (unaudited)
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Forward-Looking Statements
|
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Directors, Executive Officers and Corporate Governance
|
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Exhibits and Financial Statement Schedules
|
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Form 10-K Cross Reference Index
|
|
ABOUT GENERAL ELECTRIC
|
|
•
|
product development cycles for many of our products are long and product quality and efficiency are critical to success,
|
•
|
research and development expenditures are important to our business,
|
•
|
many of our products are subject to a number of regulatory standards and
|
•
|
changing end markets, including shifts in energy sources and demand and the impact of technology changes.
|
MD&A
|
|
|
•
|
Consolidated – the adding together of GE and GE Capital, giving effect to the elimination of transactions between the two. We present consolidated results in the left-side column of our consolidated Statements of Earnings (Loss), Financial Position and Cash Flows.
|
•
|
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, any intercompany profits resulting from transactions between GE and GE Capital are 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.
|
•
|
GE Capital – 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 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.
|
•
|
Industrial segment – the sum of our four industrial reportable segments, without giving effect to the elimination of transactions among such segments or 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.
|
MD&A
|
CONSOLIDATED RESULTS
|
(In billions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Equipment
|
$
|
79.0
|
|
$
|
77.1
|
|
$
|
75.1
|
|
Services
|
325.6
|
|
273.5
|
|
256.8
|
|
|||
Total backlog
|
$
|
404.6
|
|
$
|
350.6
|
|
$
|
331.9
|
|
Equipment
|
$
|
45.0
|
|
$
|
49.3
|
|
$
|
48.8
|
|
Services
|
45.3
|
|
45.5
|
|
46.5
|
|
|||
Total orders
|
$
|
90.3
|
|
$
|
94.8
|
|
$
|
95.3
|
|
MD&A
|
CONSOLIDATED RESULTS
|
December 31, 2019 (In billions)
|
Equipment
|
|
Services
|
|
Total
|
|
|||
|
|
|
|
||||||
Backlog
|
$
|
79.0
|
|
$
|
325.6
|
|
$
|
404.6
|
|
Adjustments
|
(30.5
|
)
|
(128.7
|
)
|
(159.1
|
)
|
|||
Remaining performance obligation
|
$
|
48.5
|
|
$
|
196.9
|
|
$
|
245.4
|
|
(In billions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Consolidated revenues
|
$
|
95.2
|
|
$
|
97.0
|
|
$
|
99.3
|
|
|
|
|
|
||||||
Equipment
|
42.9
|
|
42.4
|
|
48.0
|
|
|||
Services
|
43.9
|
|
44.4
|
|
41.7
|
|
|||
Industrial segment revenues
|
$
|
86.8
|
|
$
|
86.8
|
|
$
|
89.8
|
|
Corporate items and Industrial eliminations
|
0.9
|
|
2.3
|
|
2.5
|
|
|||
GE Industrial revenues
|
$
|
87.7
|
|
$
|
89.0
|
|
$
|
92.2
|
|
GE Capital revenues
|
$
|
8.7
|
|
$
|
9.6
|
|
$
|
9.1
|
|
(In billions; per-share amounts in dollars and diluted)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Continuing earnings (loss) attributable to GE common shareholders
|
$
|
—
|
|
$
|
(21.4
|
)
|
$
|
(8.7
|
)
|
Continuing earnings (loss) per share
|
$
|
(0.01
|
)
|
$
|
(2.47
|
)
|
$
|
(1.00
|
)
|
MD&A
|
CONSOLIDATED RESULTS
|
•
|
Decreased revenues by $1.4 billion in 2019, primarily driven by the euro ($0.7 billion), the Chinese renminbi ($0.2 billion), the Brazilian real ($0.1 billion), the pound sterling ($0.1 billion), and the Australian dollar ($0.1 billion).
|
•
|
Increased revenues by $0.5 billion in 2018, primarily driven by the euro ($0.3 billion).
|
MD&A
|
CONSOLIDATED RESULTS
|
MD&A
|
SEGMENT OPERATIONS
|
|
SUMMARY OF REPORTABLE SEGMENTS (In millions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Power
|
$
|
18,625
|
|
$
|
22,150
|
|
$
|
29,426
|
|
Renewable Energy
|
15,337
|
|
14,288
|
|
14,321
|
|
|||
Aviation
|
32,875
|
|
30,566
|
|
27,013
|
|
|||
Healthcare
|
19,942
|
|
19,784
|
|
19,017
|
|
|||
Total industrial segment revenues
|
86,778
|
|
86,789
|
|
89,776
|
|
|||
Capital
|
8,741
|
|
9,551
|
|
9,070
|
|
|||
Total segment revenues
|
95,519
|
|
96,339
|
|
98,847
|
|
|||
Corporate items and eliminations
|
(305
|
)
|
673
|
|
433
|
|
|||
Consolidated revenues
|
$
|
95,214
|
|
$
|
97,012
|
|
$
|
99,279
|
|
|
|
|
|
||||||
Power
|
$
|
386
|
|
$
|
(808
|
)
|
$
|
1,894
|
|
Renewable Energy
|
(666
|
)
|
292
|
|
728
|
|
|||
Aviation
|
6,820
|
|
6,466
|
|
5,370
|
|
|||
Healthcare
|
3,896
|
|
3,698
|
|
3,488
|
|
|||
Total industrial segment profit
|
10,436
|
|
9,647
|
|
11,479
|
|
|||
Capital
|
(530
|
)
|
(489
|
)
|
(6,765
|
)
|
|||
Total segment profit
|
9,906
|
|
9,158
|
|
4,714
|
|
|||
Corporate items and eliminations
|
(2,212
|
)
|
(2,837
|
)
|
(3,798
|
)
|
|||
GE goodwill impairments
|
(1,486
|
)
|
(22,136
|
)
|
(1,165
|
)
|
|||
GE interest and other financial charges
|
(2,115
|
)
|
(2,415
|
)
|
(2,538
|
)
|
|||
GE non-operating benefit costs
|
(2,828
|
)
|
(2,740
|
)
|
(2,409
|
)
|
|||
GE benefit (provision) for income taxes
|
(1,309
|
)
|
(467
|
)
|
(3,493
|
)
|
|||
Earnings (loss) from continuing operations attributable to GE common shareholders
|
(44
|
)
|
(21,438
|
)
|
(8,689
|
)
|
|||
Earnings (loss) from discontinued operations, net of taxes
|
(5,335
|
)
|
(1,363
|
)
|
(312
|
)
|
|||
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations
|
60
|
|
1
|
|
(81
|
)
|
|||
Earnings (loss) from discontinued operations, net of taxes and noncontrolling interests
|
(5,395
|
)
|
(1,364
|
)
|
(231
|
)
|
|||
Consolidated net earnings (loss) attributable to GE common shareholders
|
$
|
(5,439
|
)
|
$
|
(22,802
|
)
|
$
|
(8,920
|
)
|
MD&A
|
SEGMENT OPERATIONS
|
|
(Dollars in billions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Equipment
|
$
|
17.7
|
|
$
|
18.8
|
|
$
|
19.3
|
|
Services
|
67.6
|
|
66.2
|
|
70.4
|
|
|||
Total backlog
|
$
|
85.3
|
|
$
|
85.0
|
|
$
|
89.7
|
|
|
|
|
|
||||||
Equipment
|
$
|
5.2
|
|
$
|
9.3
|
|
$
|
13.0
|
|
Services
|
11.7
|
|
13.3
|
|
17.0
|
|
|||
Total orders
|
$
|
16.9
|
|
$
|
22.6
|
|
$
|
30.0
|
|
Gas Power
|
$
|
13.1
|
|
$
|
13.3
|
|
$
|
17.1
|
|
Power Portfolio
|
5.5
|
|
8.9
|
|
12.3
|
|
|||
Total segment revenues
|
$
|
18.6
|
|
$
|
22.1
|
|
$
|
29.4
|
|
U.S.
|
$
|
6.0
|
|
$
|
7.5
|
|
$
|
9.9
|
|
Non-U.S.
|
|
|
|
||||||
Europe
|
3.1
|
|
4.5
|
|
5.1
|
|
|||
Asia
|
4.0
|
|
4.1
|
|
5.0
|
|
|||
Americas
|
1.9
|
|
2.5
|
|
2.6
|
|
|||
Middle East and Africa
|
3.6
|
|
3.5
|
|
6.8
|
|
|||
Total Non-U.S.
|
$
|
12.6
|
|
$
|
14.7
|
|
$
|
19.5
|
|
Total segment revenues
|
$
|
18.6
|
|
$
|
22.1
|
|
$
|
29.4
|
|
Non-U.S. revenues as a % of segment revenues
|
68
|
%
|
66
|
%
|
66
|
%
|
Equipment
|
$
|
6.2
|
|
$
|
8.1
|
|
$
|
12.9
|
|
Services
|
12.4
|
|
14.1
|
|
16.5
|
|
|||
Total segment revenues(a)
|
$
|
18.6
|
|
$
|
22.1
|
|
$
|
29.4
|
|
|
|
|
|
||||||
Segment profit(b)
|
$
|
0.4
|
|
$
|
(0.8
|
)
|
$
|
1.9
|
|
Segment profit margin
|
2.1
|
%
|
(3.6
|
)%
|
6.4
|
%
|
MD&A
|
SEGMENT OPERATIONS
|
|
MD&A
|
SEGMENT OPERATIONS | RENEWABLE ENERGY
|
(Dollars in billions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Equipment
|
$
|
16.3
|
|
$
|
14.4
|
|
$
|
15.0
|
|
Services
|
11.2
|
|
9.3
|
|
7.4
|
|
|||
Total backlog
|
$
|
27.5
|
|
$
|
23.7
|
|
$
|
22.5
|
|
|
|
|
|
||||||
Equipment
|
$
|
14.0
|
|
$
|
11.8
|
|
$
|
12.8
|
|
Services
|
2.9
|
|
3.5
|
|
2.6
|
|
|||
Total orders
|
$
|
16.9
|
|
$
|
15.3
|
|
$
|
15.4
|
|
Onshore Wind
|
$
|
10.4
|
|
$
|
8.2
|
|
$
|
8.1
|
|
Grid Solutions equipment and services
|
4.1
|
|
4.8
|
|
5.1
|
|
|||
Other
|
0.9
|
|
1.3
|
|
1.1
|
|
|||
Total segment revenues
|
$
|
15.3
|
|
$
|
14.3
|
|
$
|
14.3
|
|
U.S.
|
$
|
7.4
|
|
$
|
4.9
|
|
$
|
5.6
|
|
Non-U.S.
|
|
|
|
||||||
Europe
|
2.9
|
|
3.2
|
|
3.0
|
|
|||
Asia
|
2.7
|
|
2.9
|
|
2.1
|
|
|||
Americas
|
1.1
|
|
2.2
|
|
2.4
|
|
|||
Middle East and Africa
|
1.2
|
|
1.1
|
|
1.2
|
|
|||
Total Non-U.S.
|
$
|
7.9
|
|
$
|
9.4
|
|
$
|
8.7
|
|
Total segment revenues
|
$
|
15.3
|
|
$
|
14.3
|
|
$
|
14.3
|
|
|
|
|
|
||||||
Non-U.S. revenues as a % of segment revenues
|
52
|
%
|
66
|
%
|
61
|
%
|
MD&A
|
SEGMENT OPERATIONS | RENEWABLE ENERGY
|
(Dollars in billions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Equipment
|
$
|
12.3
|
|
$
|
11.4
|
|
$
|
14.0
|
|
Services
|
3.1
|
|
2.9
|
|
0.4
|
|
|||
Total segment revenues(a)
|
$
|
15.3
|
|
$
|
14.3
|
|
$
|
14.3
|
|
Segment profit(b)
|
$
|
(0.7
|
)
|
$
|
0.3
|
|
$
|
0.7
|
|
Segment profit margin
|
(4.3
|
)%
|
2.0
|
%
|
5.1
|
%
|
(a)
|
Renewable Energy segment revenues represent 18% and 16% of total industrial segment revenues and total segment revenues, respectively, for the year ended December 31, 2019.
|
(b)
|
Renewable Energy segment profit represents (6)% of total industrial segment profit for the year ended December 31, 2019.
|
MD&A
|
SEGMENT OPERATIONS
|
|
(In billions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Equipment
|
$
|
39.1
|
|
$
|
37.8
|
|
$
|
34.1
|
|
Services
|
234.1
|
|
185.7
|
|
166.1
|
|
|||
Total backlog
|
$
|
273.2
|
|
$
|
223.5
|
|
$
|
200.2
|
|
|
|
|
|
||||||
Equipment
|
$
|
14.5
|
|
$
|
15.3
|
|
$
|
10.6
|
|
Services
|
22.3
|
|
20.2
|
|
18.5
|
|
|||
Total orders
|
$
|
36.7
|
|
$
|
35.5
|
|
$
|
29.1
|
|
Commercial
|
$
|
24.2
|
|
$
|
22.7
|
|
$
|
19.7
|
|
Military
|
4.4
|
|
4.1
|
|
4.0
|
|
|||
Systems & Other
|
4.3
|
|
3.7
|
|
3.3
|
|
|||
Total segment revenues
|
$
|
32.9
|
|
$
|
30.6
|
|
$
|
27.0
|
|
MD&A
|
SEGMENT OPERATIONS
|
|
(Dollars in billions)
|
2019
|
2018
|
2017
|
||||||
|
|
|
|
||||||
U.S.
|
$
|
13.4
|
|
$
|
12.5
|
|
$
|
10.8
|
|
Non-U.S.
|
|
|
|
||||||
Europe
|
7.5
|
|
7.0
|
|
6.3
|
|
|||
Asia
|
6.6
|
|
5.8
|
|
5.2
|
|
|||
Americas
|
1.6
|
|
1.5
|
|
1.1
|
|
|||
Middle East and Africa
|
3.8
|
|
3.8
|
|
3.6
|
|
|||
Total Non-U.S.
|
$
|
19.5
|
|
$
|
18.0
|
|
$
|
16.3
|
|
Total segment revenues
|
$
|
32.9
|
|
$
|
30.6
|
|
$
|
27.0
|
|
|
|
|
|
||||||
Non-U.S. revenues as a % of segment revenues
|
59
|
%
|
59
|
%
|
60
|
%
|
Equipment
|
$
|
12.8
|
|
$
|
11.5
|
|
$
|
10.2
|
|
Services
|
20.1
|
|
19.1
|
|
16.8
|
|
|||
Total segment revenues(a)
|
$
|
32.9
|
|
$
|
30.6
|
|
$
|
27.0
|
|
Segment profit(b)
|
$
|
6.8
|
|
$
|
6.5
|
|
$
|
5.4
|
|
Segment profit margin
|
20.7
|
%
|
21.2
|
%
|
19.9
|
%
|
(a)
|
Aviation segment revenues represent 38% and 34% of total industrial segment revenues and total segment revenues, respectively, for the year ended December 31, 2019.
|
(b)
|
Aviation segment profit represents 65% of total industrial segment profit for the year ended December 31, 2019.
|
MD&A
|
SEGMENT OPERATIONS
|
|
MD&A
|
SEGMENT OPERATIONS
|
|
(Dollars in billions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Equipment
|
$
|
7.0
|
|
$
|
6.3
|
|
$
|
6.4
|
|
Services
|
11.5
|
|
11.2
|
|
11.7
|
|
|||
Total backlog
|
$
|
18.5
|
|
$
|
17.4
|
|
$
|
18.1
|
|
|
|
|
|
||||||
Equipment
|
$
|
13.0
|
|
$
|
12.6
|
|
$
|
12.2
|
|
Services
|
8.2
|
|
8.3
|
|
8.2
|
|
|||
Total orders
|
$
|
21.2
|
|
$
|
20.9
|
|
$
|
20.4
|
|
Healthcare Systems
|
$
|
14.6
|
|
$
|
14.9
|
|
$
|
14.5
|
|
Life Sciences
|
5.3
|
|
4.9
|
|
4.6
|
|
|||
Total segment revenues
|
$
|
19.9
|
|
$
|
19.8
|
|
$
|
19.0
|
|
U.S.
|
$
|
8.5
|
|
$
|
8.6
|
|
$
|
8.4
|
|
Non-U.S.
|
|
|
|
||||||
Europe
|
4.1
|
|
4.2
|
|
3.9
|
|
|||
Asia
|
5.4
|
|
5.2
|
|
4.9
|
|
|||
Americas
|
1.1
|
|
1.0
|
|
1.0
|
|
|||
Middle East and Africa
|
0.8
|
|
0.8
|
|
0.9
|
|
|||
Total Non-U.S.
|
$
|
11.4
|
|
$
|
11.2
|
|
$
|
10.6
|
|
Total segment revenues
|
$
|
19.9
|
|
$
|
19.8
|
|
$
|
19.0
|
|
|
|
|
|
||||||
Non-U.S. revenues as a % of segment revenues
|
57
|
%
|
57
|
%
|
56
|
%
|
Equipment
|
$
|
11.6
|
|
$
|
11.4
|
|
$
|
10.8
|
|
Services
|
8.4
|
|
8.4
|
|
8.2
|
|
|||
Total segment revenues(a)
|
$
|
19.9
|
|
$
|
19.8
|
|
$
|
19.0
|
|
Segment profit(b)
|
$
|
3.9
|
|
$
|
3.7
|
|
$
|
3.5
|
|
Segment profit margin
|
19.5
|
%
|
18.7
|
%
|
18.3
|
%
|
(a)
|
Healthcare segment revenues represent 23% and 21% of total industrial segment revenues and total segment revenues, respectively, for the year ended December 31, 2019.
|
(b)
|
Healthcare segment profit represents 37% of total industrial segment profit for the year ended December 31, 2019.
|
MD&A
|
SEGMENT OPERATIONS
|
|
MD&A
|
SEGMENT OPERATIONS
|
|
(Dollars in billions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
GECAS
|
$
|
38.0
|
|
$
|
41.7
|
|
EFS
|
1.8
|
|
3.0
|
|
||
IF and WCS
|
9.0
|
|
15.8
|
|
||
Insurance
|
46.3
|
|
40.3
|
|
||
Other continuing operations
|
22.5
|
|
18.6
|
|
||
Total segment assets
|
$
|
117.5
|
|
$
|
119.3
|
|
GE Capital debt to equity ratio
|
3.86:1
|
5.74:1
|
(In billions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
GECAS
|
$
|
4.9
|
|
$
|
4.9
|
|
$
|
5.1
|
|
EFS
|
0.1
|
|
0.1
|
|
(0.5
|
)
|
|||
IF and WCS
|
0.8
|
|
1.5
|
|
1.5
|
|
|||
Insurance
|
2.9
|
|
2.9
|
|
2.9
|
|
|||
Other continuing operations
|
—
|
|
0.1
|
|
—
|
|
|||
Total segment revenues(a)
|
$
|
8.7
|
|
$
|
9.6
|
|
$
|
9.1
|
|
|
|
|
|
||||||
GECAS
|
$
|
1.0
|
|
$
|
1.2
|
|
$
|
2.1
|
|
EFS
|
0.1
|
|
0.1
|
|
(1.5
|
)
|
|||
IF and WCS
|
0.2
|
|
0.3
|
|
0.5
|
|
|||
Insurance
|
(0.6
|
)
|
(0.2
|
)
|
(7.2
|
)
|
|||
Other continuing operations(b)
|
(1.3
|
)
|
(1.9
|
)
|
(0.7
|
)
|
|||
Total segment profit
|
$
|
(0.5
|
)
|
$
|
(0.5
|
)
|
$
|
(6.8
|
)
|
(a)
|
Capital segment revenues represent 9% of total segment revenues for the year ended December 31, 2019.
|
(b)
|
Other continuing operations primarily comprised excess interest costs from debt previously allocated to assets that have been sold as part of the GE Capital Exit Plan, 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, which differs from the asset profile when the debt was originated. As a result, actual interest expense is higher than interest expense allocated to the remaining GE Capital segments. Substantially all preferred stock dividend costs will become a GE obligation in January 2021. See Note 16 to the consolidated financial statements for further information. 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 gradually decline as debt matures and/or is refinanced.
|
(Dollars in billions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
U.S.
|
$
|
4.1
|
|
$
|
5.3
|
|
$
|
4.4
|
|
Non-U.S.
|
|
|
|
||||||
Europe
|
1.6
|
|
1.4
|
|
1.5
|
|
|||
Asia
|
1.5
|
|
1.4
|
|
1.4
|
|
|||
Americas
|
0.7
|
|
0.6
|
|
0.8
|
|
|||
Middle East and Africa
|
0.8
|
|
0.9
|
|
1.0
|
|
|||
Total Non-U.S.
|
4.6
|
|
4.3
|
|
4.7
|
|
|||
Total segment revenues
|
$
|
8.7
|
|
$
|
9.6
|
|
$
|
9.1
|
|
|
|
|
|
||||||
Non-U.S. revenues as a % of segment revenues
|
53
|
%
|
45
|
%
|
52
|
%
|
MD&A
|
SEGMENT OPERATIONS
|
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Revenues
|
|
|
|
||||||
Corporate revenues
|
$
|
1,791
|
|
$
|
2,783
|
|
$
|
2,897
|
|
Eliminations and other
|
(2,096
|
)
|
(2,110
|
)
|
(2,464
|
)
|
|||
Total Corporate Items and Eliminations
|
$
|
(305
|
)
|
$
|
673
|
|
$
|
433
|
|
|
|
|
|
||||||
Operating profit (cost)
|
|
|
|
||||||
Gains (losses) on disposals and held for sale businesses
|
$
|
4
|
|
$
|
1,370
|
|
$
|
926
|
|
Restructuring and other charges
|
(1,315
|
)
|
(2,952
|
)
|
(3,023
|
)
|
|||
Unrealized gains (losses)(a)
|
793
|
|
—
|
|
—
|
|
|||
Goodwill impairments (Note 8)
|
(1,486
|
)
|
(22,136
|
)
|
(1,165
|
)
|
|||
Adjusted total corporate operating costs (Non-GAAP)
|
(1,693
|
)
|
(1,255
|
)
|
(1,701
|
)
|
|||
Total Corporate Items and Eliminations (GAAP)
|
$
|
(3,698
|
)
|
$
|
(24,973
|
)
|
$
|
(4,963
|
)
|
Less: gains (losses), impairments and restructuring & other
|
(2,004
|
)
|
(23,719
|
)
|
(3,262
|
)
|
|||
Adjusted total corporate operating costs (Non-GAAP)
|
$
|
(1,693
|
)
|
$
|
(1,255
|
)
|
$
|
(1,701
|
)
|
Functions & operations
|
$
|
(1,252
|
)
|
$
|
(1,362
|
)
|
$
|
(2,007
|
)
|
Eliminations
|
(184
|
)
|
(61
|
)
|
9
|
|
|||
Environmental, health & safety (EHS) and other items
|
(258
|
)
|
$
|
169
|
|
$
|
297
|
|
|
Adjusted total corporate operating costs (Non-GAAP)
|
$
|
(1,693
|
)
|
$
|
(1,255
|
)
|
$
|
(1,701
|
)
|
MD&A
|
CORPORATE ITEMS AND ELIMINATIONS
|
(In billions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Workforce reductions
|
$
|
0.8
|
|
$
|
0.9
|
|
$
|
1.0
|
|
Plant closures & associated costs and other asset write-downs
|
0.3
|
|
1.4
|
|
1.5
|
|
|||
Acquisition/disposition net charges
|
0.2
|
|
0.6
|
|
0.5
|
|
|||
Other
|
—
|
|
—
|
|
0.1
|
|
|||
Total restructuring and other charges
|
$
|
1.3
|
|
$
|
3.0
|
|
$
|
3.0
|
|
Cost of product/services
|
$
|
0.4
|
|
$
|
1.1
|
|
$
|
1.8
|
|
Selling, general and administrative expenses
|
1.0
|
|
1.7
|
|
1.2
|
|
|||
Other income
|
—
|
|
0.1
|
|
0.1
|
|
|||
Total restructuring and other charges
|
$
|
1.3
|
|
$
|
3.0
|
|
$
|
3.0
|
|
Power
|
$
|
0.4
|
|
$
|
1.3
|
|
$
|
0.9
|
|
Renewable Energy
|
0.2
|
|
0.3
|
|
0.3
|
|
|||
Aviation
|
—
|
|
—
|
|
0.1
|
|
|||
Healthcare
|
0.2
|
|
0.2
|
|
0.3
|
|
|||
Corporate
|
0.6
|
|
1.1
|
|
1.5
|
|
|||
Total restructuring and other charges by business
|
$
|
1.3
|
|
$
|
3.0
|
|
$
|
3.0
|
|
|
Costs
|
|
Gains (Losses)
|
||||||||||||||||||||
(In billions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Power
|
$
|
0.4
|
|
|
$
|
20.5
|
|
|
$
|
2.0
|
|
|
$
|
—
|
|
|
$
|
1.0
|
|
|
$
|
1.9
|
|
Renewable Energy
|
1.7
|
|
|
3.3
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Aviation
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.3
|
)
|
||||||
Healthcare
|
0.2
|
|
|
0.2
|
|
|
0.3
|
|
|
—
|
|
|
0.8
|
|
|
—
|
|
||||||
Total segments
|
$
|
2.2
|
|
|
$
|
24.0
|
|
|
$
|
2.7
|
|
|
$
|
—
|
|
|
$
|
1.7
|
|
|
$
|
1.6
|
|
Corporate Items and Eliminations
|
0.6
|
|
|
1.1
|
|
|
1.5
|
|
|
0.8
|
|
|
(0.3
|
)
|
|
(0.7
|
)
|
||||||
Total Industrial
|
$
|
2.8
|
|
|
$
|
25.1
|
|
|
$
|
4.2
|
|
|
$
|
0.8
|
|
|
$
|
1.4
|
|
|
$
|
0.9
|
|
MD&A
|
OTHER CONSOLIDATED INFORMATION
|
INTEREST AND OTHER FINANCIAL CHARGES (In billions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
GE
|
$
|
2.1
|
|
$
|
2.4
|
|
$
|
2.5
|
|
GE Capital
|
2.5
|
|
3.0
|
|
3.1
|
|
|||
Consolidated
|
$
|
4.2
|
|
$
|
4.8
|
|
$
|
4.7
|
|
CONSOLIDATED (Dollars in billions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Effective tax rate (ETR)
|
63.2
|
%
|
(0.4
|
)%
|
24.8
|
%
|
|||
Provision (benefit) for income taxes
|
$
|
0.7
|
|
$
|
0.1
|
|
$
|
(2.8
|
)
|
Cash income taxes paid(a)
|
2.2
|
|
1.9
|
|
2.4
|
|
MD&A
|
OTHER CONSOLIDATED INFORMATION
|
BENEFIT/(EXPENSE) FROM GLOBAL OPERATIONS (In billions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Benefit/(expense) of foreign tax rate difference on non-U.S. earnings
|
$
|
—
|
|
$
|
(0.3
|
)
|
$
|
0.5
|
|
Benefit of audit resolutions
|
0.1
|
|
0.2
|
|
—
|
|
|||
Other
|
(1.1
|
)
|
(0.9
|
)
|
2.9
|
|
|||
Total benefit/(expense)
|
$
|
(1.0
|
)
|
$
|
(1.0
|
)
|
$
|
3.4
|
|
MD&A
|
OTHER CONSOLIDATED INFORMATION
|
GE EFFECTIVE TAX RATE (EXCLUDING GE CAPITAL EARNINGS) (Dollars in billions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
GE ETR, excluding GE Capital earnings*
|
72.7
|
%
|
(2.3
|
)%
|
271.0
|
%
|
|||
GE provision for income taxes
|
$
|
1.3
|
|
$
|
0.5
|
|
$
|
3.5
|
|
GE CAPITAL EFFECTIVE TAX RATE (Dollars in billions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
GE Capital ETR
|
89.3
|
%
|
99.7
|
%
|
49.9
|
%
|
|||
GE Capital provision (benefit) for income taxes
|
$
|
(0.6
|
)
|
$
|
(0.4
|
)
|
$
|
(6.3
|
)
|
|
GE funded
|
Customer and Partner funded(b)
|
Total R&D
|
||||||||||||||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Power
|
$
|
310
|
|
$
|
407
|
|
$
|
641
|
|
$
|
16
|
|
$
|
7
|
|
$
|
35
|
|
$
|
327
|
|
$
|
414
|
|
$
|
676
|
|
Renewable Energy
|
522
|
|
413
|
|
448
|
|
9
|
|
11
|
|
3
|
|
531
|
|
424
|
|
451
|
|
|||||||||
Aviation
|
906
|
|
950
|
|
907
|
|
911
|
|
564
|
|
586
|
|
1,817
|
|
1,514
|
|
1,492
|
|
|||||||||
Healthcare
|
994
|
|
968
|
|
908
|
|
25
|
|
23
|
|
26
|
|
1,019
|
|
991
|
|
934
|
|
|||||||||
Corporate(a)
|
382
|
|
675
|
|
1,271
|
|
89
|
|
48
|
|
65
|
|
471
|
|
722
|
|
1,336
|
|
|||||||||
Total
|
$
|
3,115
|
|
$
|
3,414
|
|
$
|
4,175
|
|
$
|
1,049
|
|
$
|
652
|
|
$
|
715
|
|
$
|
4,164
|
|
$
|
4,065
|
|
$
|
4,890
|
|
MD&A
|
OTHER CONSOLIDATED INFORMATION
|
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS (In billions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Earnings (loss) of discontinued operations, net of taxes
|
$
|
0.3
|
|
$
|
(1.4
|
)
|
$
|
(0.4
|
)
|
Gain (loss) on disposal, net of taxes
|
(5.7
|
)
|
—
|
|
0.1
|
|
|||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(5.3
|
)
|
$
|
(1.4
|
)
|
$
|
(0.3
|
)
|
(In billions)
|
December 31, 2019
|
|
|
|
December 31, 2019
|
|
||
|
|
|
|
|
||||
GE
|
$
|
17.6
|
|
|
U.S.
|
$
|
14.9
|
|
GE Capital
|
18.8
|
|
|
Non-U.S.
|
21.4
|
|
||
Consolidated
|
$
|
36.4
|
|
|
Consolidated
|
$
|
36.4
|
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
December 31, 2019 (In billions)
|
GE
|
|
GE Capital
|
|
Consolidated(a)
|
|
|||
|
|
|
|
||||||
Total short- and long-term borrowings
|
$
|
52.1
|
|
$
|
39.9
|
|
$
|
90.9
|
|
|
|
|
|
||||||
Debt assumed by GE from GE Capital
|
(31.4
|
)
|
31.4
|
|
—
|
|
|||
Intercompany loans with right of offset
|
12.2
|
|
(12.2
|
)
|
—
|
|
|||
Total intercompany payable (receivable) between GE and GE Capital
|
(19.1
|
)
|
19.1
|
|
—
|
|
|||
|
|
|
|
||||||
Total borrowings adjusted for assumed debt and intercompany loans
|
$
|
32.9
|
|
$
|
59.0
|
|
$
|
90.9
|
|
(a)
|
Included elimination of other GE borrowings from GE Capital, primarily related to timing of cash settlements associated with GE receivables monetization programs.
|
GE (In billions)
|
December 31, 2019
|
|
December 31,
2018 |
|
|
GE Capital (In billions)
|
December 31, 2019
|
|
December 31, 2018
|
|
||||
Commercial paper
|
$
|
3.0
|
|
$
|
3.0
|
|
|
Commercial paper
|
$
|
—
|
|
$
|
—
|
|
GE senior notes
|
15.5
|
|
20.4
|
|
|
Senior and subordinated notes
|
36.5
|
|
39.1
|
|
||||
Intercompany loans from
GE Capital
|
12.2
|
|
13.7
|
|
|
Senior and subordinated notes assumed by GE
|
31.4
|
|
36.3
|
|
||||
Other GE borrowings
|
2.2
|
|
2.6
|
|
|
Intercompany loans to GE
|
(12.2
|
)
|
(13.7
|
)
|
||||
|
|
|
|
Other GE Capital borrowings(a)
|
3.4
|
|
3.9
|
|
||||||
|
|
|
|
Total GE Capital
|
|
|
||||||||
Total GE adjusted borrowings
|
$
|
32.9
|
|
$
|
39.7
|
|
|
adjusted borrowings
|
$
|
59.0
|
|
$
|
65.5
|
|
GE COMMITTED AND AVAILABLE CREDIT FACILITIES (In billions)
|
December 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
|
|
Total
|
|
|||
|
|
|
|
||||||
2019
|
|
|
|
||||||
Average borrowings during the fourth quarter
|
$
|
3.0
|
|
$
|
1.3
|
|
$
|
4.3
|
|
Maximum borrowings outstanding during the fourth quarter
|
3.2
|
|
1.5
|
|
4.7
|
|
|||
Ending balance at December 31
|
3.0
|
|
—
|
|
3.0
|
|
|||
|
|
|
|
||||||
2018
|
|
|
|
||||||
Average borrowings during the fourth quarter
|
$
|
7.9
|
|
$
|
2.5
|
|
$
|
10.4
|
|
Maximum borrowings outstanding during the fourth quarter
|
10.7
|
|
5.1
|
|
14.8
|
|
|||
Ending balance at December 31
|
3.0
|
|
—
|
|
3.0
|
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
(In billions)
|
Triggers Below
|
At December 31, 2019
|
|
|
|
|
|
||
Derivatives
|
|
|
||
Terminations
|
BBB/Baa2
|
$
|
(0.2
|
)
|
Cash margin posting
|
BBB/Baa2
|
(0.5
|
)
|
|
Receivables Sales Programs
|
|
|
||
Loss of cash commingling
|
A-2/P-2/F2
|
$
|
(0.3
|
)
|
Alternative funding sources
|
A-2/P-2/F2
|
(1.1
|
)
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
•
|
It is our policy to minimize exposure to interest rate changes and their impact to interest and other financial charges. We fund our financial investments using a combination of debt and hedging instruments so that the interest rates of our borrowings match the expected interest rate profile on our assets. It is our policy to minimize currency exposures and to conduct operations either within functional currencies or using the protection of hedge strategies. To test the effectiveness of our hedging actions, for interest rate risk we assumed that, on January 1, 2020, interest rates decreased by 100 basis points and the decrease remained in place for the next 12 months and for currency risk of assets and liabilities denominated in other than their functional currencies, we evaluated the effect of a 10% shift in exchange rates against the U.S. dollar. The analyses indicated that our 2019 consolidated net earnings would decline by less than $0.1 billion for interest rate risk and approximately $0.1 billion for foreign exchange risk.
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
2019 CFOA (GAAP) AND FREE CASH FLOWS (FCF) BY SEGMENT (NON-GAAP)
|
|
|
|
|||||||||||||||||||||
(In millions)
|
|
Power
|
|
Renewable Energy
|
|
Aviation
|
|
Healthcare
|
|
Corporate & Eliminations
|
|
GE Industrial
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
CFOA (GAAP)
|
|
$
|
(1,200
|
)
|
|
$
|
(512
|
)
|
|
$
|
5,552
|
|
|
$
|
3,024
|
|
|
$
|
(2,250
|
)
|
|
$
|
4,614
|
|
Add: gross additions to property, plant and equipment
|
|
(277
|
)
|
|
(455
|
)
|
|
(1,031
|
)
|
|
(395
|
)
|
|
(59
|
)
|
|
(2,216
|
)
|
||||||
Add: gross additions to internal-use software
|
|
(46
|
)
|
|
(14
|
)
|
|
(107
|
)
|
|
(79
|
)
|
|
(28
|
)
|
|
(274
|
)
|
||||||
Less: GE Pension Plan funding
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Less: taxes related to business sales
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(198
|
)
|
|
(198
|
)
|
||||||
Free cash flows (Non-GAAP)
|
|
$
|
(1,523
|
)
|
|
$
|
(980
|
)
|
|
$
|
4,415
|
|
|
$
|
2,550
|
|
|
$
|
(2,139
|
)
|
|
$
|
2,322
|
|
2018 CFOA (GAAP) AND FREE CASH FLOWS (FCF) BY SEGMENT (NON-GAAP)
|
|
|
|
|||||||||||||||||||||
(In millions)
|
|
Power
|
|
Renewable Energy
|
|
Aviation
|
|
Healthcare
|
|
Corporate & Eliminations
|
|
GE Industrial
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
CFOA (GAAP)
|
|
$
|
(1,849
|
)
|
|
$
|
406
|
|
|
$
|
5,373
|
|
|
$
|
3,485
|
|
|
$
|
(6,714
|
)
|
|
$
|
701
|
|
Add: gross additions to property, plant and equipment
|
|
(358
|
)
|
|
(297
|
)
|
|
(1,070
|
)
|
|
(378
|
)
|
|
(131
|
)
|
|
(2,234
|
)
|
||||||
Add: gross additions to internal-use software
|
|
(66
|
)
|
|
(11
|
)
|
|
(73
|
)
|
|
(90
|
)
|
|
(67
|
)
|
|
(306
|
)
|
||||||
Less: GE Pension Plan funding
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,000
|
)
|
|
(6,000
|
)
|
||||||
Less: taxes related to business sales
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(180
|
)
|
|
(180
|
)
|
||||||
Free cash flows (Non-GAAP)
|
|
$
|
(2,273
|
)
|
|
$
|
98
|
|
|
$
|
4,230
|
|
|
$
|
3,018
|
|
|
$
|
(731
|
)
|
|
$
|
4,341
|
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
(In billions)
|
Total
|
|
2020
|
|
2021-2022
|
|
2023-2024
|
|
Thereafter
|
|
|||||
|
|
|
|
|
|
||||||||||
Borrowings (Note 11)
|
$
|
90.9
|
|
$
|
23.6
|
|
$
|
15.9
|
|
$
|
8.4
|
|
$
|
42.9
|
|
Interest on borrowings
|
24.8
|
|
2.5
|
|
3.9
|
|
3.1
|
|
15.3
|
|
|||||
Purchase obligations(a)(b)
|
57.8
|
|
18.4
|
|
20.2
|
|
15.1
|
|
4.2
|
|
|||||
Insurance liabilities (Note 12)
|
39.7
|
|
2.4
|
|
4.1
|
|
4.1
|
|
29.0
|
|
|||||
Operating lease obligations (Note 7)
|
3.7
|
|
0.8
|
|
1.2
|
|
0.8
|
|
0.9
|
|
|||||
Other liabilities(c)
|
45.3
|
|
10.1
|
|
6.7
|
|
5.1
|
|
23.4
|
|
|||||
Contractual obligations of discontinued operations(d)
|
0.6
|
|
0.3
|
|
0.1
|
|
0.1
|
|
0.1
|
|
(a)
|
Included all take-or-pay arrangements, capital expenditures, contractual commitments to purchase equipment that will be leased to others, software acquisition/license commitments, and other purchase commitments.
|
(b)
|
Excluded funding commitments entered into in the ordinary course of business. See Notes 23 to the consolidated financial statements for further information on these commitments and other guarantees.
|
(c)
|
Included an estimate of future expected funding requirements related to our postretirement benefit plans and included liabilities for unrecognized tax benefits. Because their future cash outflows are uncertain, the following non-current liabilities are excluded from the table above: derivatives, deferred income and other sundry items. See Notes 13, 15 and 21 to the consolidated financial statements for further information on certain of these items.
|
(d)
|
Included payments for other liabilities.
|
MD&A
|
CRITICAL ACCOUNTING ESTIMATES
|
MD&A
|
CRITICAL ACCOUNTING ESTIMATES
|
•
|
Discount rate – A 25 basis point decrease in discount rate would increase pension cost in the following year by about $0.2 billion and would increase the pension benefit obligation at year-end by about $2.3 billion.
|
•
|
Expected return on assets – A 50 basis point decrease in the expected return on assets would increase pension cost in the following year by about $0.3 billion.
|
MD&A
|
CRITICAL ACCOUNTING ESTIMATES
|
MD&A
|
OTHER ITEMS
|
|
December 31, 2019 (Dollars in billions, except where noted)
|
ERAC
|
UFLIC
|
Total
|
||||||
|
|
|
|
||||||
Gross GAAP future policy benefit reserves and claim reserves
|
$
|
15.2
|
|
$
|
5.8
|
|
$
|
21.0
|
|
Gross statutory future policy benefit reserves and claim reserves(a)
|
23.7
|
|
7.1
|
|
30.8
|
|
|||
Number of policies in force
|
196,000
|
|
67,000
|
|
263,000
|
|
|||
Number of covered lives in force
|
261,000
|
|
67,000
|
|
328,000
|
|
|||
Average policyholder attained age
|
75
|
|
83
|
|
77
|
|
|||
Gross GAAP future policy benefit reserve per policy (in actual dollars)
|
$
|
66,500
|
|
$
|
56,000
|
|
$
|
64,000
|
|
Gross GAAP future policy benefit reserve per covered life (in actual dollars)
|
50,000
|
|
56,000
|
|
51,000
|
|
|||
Gross statutory future policy benefit reserve per policy (in actual dollars)(a)
|
109,000
|
|
74,000
|
|
100,000
|
|
|||
Gross statutory future policy benefit reserve per covered life (in actual dollars)(a)
|
81,000
|
|
74,000
|
|
80,000
|
|
|||
Percentage of policies with:
|
|
|
|
||||||
Lifetime benefit period
|
70
|
%
|
35
|
%
|
61
|
%
|
|||
Inflation protection option
|
81
|
%
|
91
|
%
|
84
|
%
|
|||
Joint lives
|
34
|
%
|
—
|
%
|
25
|
%
|
|||
Percentage of policies that are premium paying
|
73
|
%
|
82
|
%
|
75
|
%
|
|||
Policies on claim
|
10,700
|
|
9,300
|
|
20,000
|
|
(a)
|
Statutory balances reflect recognition of the estimated remaining statutory increase in reserves of approximately $7 billion through 2023 under the permitted accounting practice discussed further below and in Note 12 to our consolidated financial statements.
|
MD&A
|
OTHER ITEMS
|
|
MD&A
|
OTHER ITEMS
|
|
MD&A
|
OTHER ITEMS
|
|
MD&A
|
OTHER ITEMS
|
|
|
2018 assumption
|
2019 assumption
|
Hypothetical change in 2019 assumption
|
Estimated increase to future policy benefit reserves
(In billions, pre-tax)
|
|
|
|
|
|
Long-term care insurance morbidity improvement
|
1.25% per year over 12 to 20 years
|
1.25% per year over 12 to 20 years
|
25 basis point reduction
No morbidity improvement |
$0.7
$3.7
|
Long-term care insurance morbidity
|
Based on company experience
|
Based on company experience
|
5% increase in dollar amount of paid claims
|
$1.1
|
Long-term care insurance mortality improvement
|
0.5% per year for 10 years with annual improvement graded to 0% over next 10 years
|
0.5% per year for 10 years with annual improvement graded to 0% over next 10 years
|
1.0% per year for 10 years with annual improvement graded to 0% over next 10 years
|
$0.4
|
Total terminations:
|
|
|
|
|
Long-term care insurance mortality
|
Based on company experience
|
Based on company experience
|
Any change in termination assumptions that reduce total terminations by 10%
|
$1.0
|
Long-term care insurance lapse rate
|
Varies by block, attained age and benefit period; average 0.5 - 1.15%
|
Varies by block, attained age and benefit period; average 0.5 - 1.15%
|
||
Long-term care insurance benefit exhaustion
|
Based on company experience
|
Based on company experience
|
||
Long-term care insurance future premium rate increases
|
Varies by block based on filing experience
|
Varies by block based on filing experience
|
25% adverse change in premium rate increase success rate
|
$0.5
|
Discount rate:
|
|
|
|
|
Overall discount rate
|
6.04%
|
5.74%
|
25 basis point reduction
|
$1.0
|
Reinvestment rate
|
4.35%; grading to a long-term average investment yield of 6.0%
|
3.05%; grading to a long-term average investment yield of 5.9%
|
25 basis point reduction; grading to long-term investment yield of 5.9%
|
Less than $0.1
|
Structured settlement annuity mortality
|
Based on company experience
|
Based on company experience
|
5% decrease in mortality
|
$0.1
|
Life insurance mortality
|
Based on company experience
|
Based on company experience
|
5% increase in mortality
|
$0.3
|
MD&A
|
OTHER ITEMS
|
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
|
GE INDUSTRIAL ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP)
|
|||||||||||||||||||||||
|
Revenues
|
|
Segment profit (loss)
|
|
Profit margin
|
||||||||||||||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
V%
|
|
|
2019
|
|
2018
|
|
V%
|
|
|
2019
|
|
2018
|
|
V pts
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Power (GAAP)
|
$
|
18,625
|
|
$
|
22,150
|
|
(16
|
)%
|
|
$
|
386
|
|
$
|
(808
|
)
|
F
|
|
|
2.1
|
%
|
(3.6
|
)%
|
5.7pts
|
Less: acquisitions
|
25
|
|
—
|
|
|
|
(1
|
)
|
—
|
|
|
|
|
|
|
||||||||
Less: business dispositions
|
10
|
|
2,805
|
|
|
|
(2
|
)
|
237
|
|
|
|
|
|
|
||||||||
Less: foreign currency effect
|
(508
|
)
|
—
|
|
|
|
47
|
|
—
|
|
|
|
|
|
|
||||||||
Power organic (Non-GAAP)
|
$
|
19,098
|
|
$
|
19,345
|
|
(1
|
)%
|
|
$
|
342
|
|
$
|
(1,046
|
)
|
F
|
|
|
1.8
|
%
|
(5.4
|
)%
|
7.2pts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Renewable Energy (GAAP)
|
$
|
15,337
|
|
$
|
14,288
|
|
7
|
%
|
|
$
|
(666
|
)
|
$
|
292
|
|
U
|
|
|
(4.3
|
)%
|
2.0
|
%
|
(6.3)pts
|
Less: acquisitions
|
3
|
|
—
|
|
|
|
6
|
|
—
|
|
|
|
|
|
|
||||||||
Less: business dispositions
|
—
|
|
—
|
|
|
|
—
|
|
(2
|
)
|
|
|
|
|
|
||||||||
Less: foreign currency effect
|
(532
|
)
|
—
|
|
|
|
60
|
|
—
|
|
|
|
|
|
|
||||||||
Renewable Energy organic (Non-GAAP)
|
$
|
15,866
|
|
$
|
14,288
|
|
11
|
%
|
|
$
|
(731
|
)
|
$
|
294
|
|
U
|
|
|
(4.6
|
)%
|
2.1
|
%
|
(6.7)pts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aviation (GAAP)
|
$
|
32,875
|
|
$
|
30,566
|
|
8
|
%
|
|
$
|
6,820
|
|
$
|
6,466
|
|
5
|
%
|
|
20.7
|
%
|
21.2
|
%
|
(0.5)pts
|
Less: acquisitions
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
|
|
|
||||||||
Less: business dispositions
|
25
|
|
317
|
|
|
|
6
|
|
39
|
|
|
|
|
|
|
||||||||
Less: foreign currency effect
|
(24
|
)
|
—
|
|
|
|
30
|
|
—
|
|
|
|
|
|
|
||||||||
Aviation organic (Non-GAAP)
|
$
|
32,874
|
|
$
|
30,250
|
|
9
|
%
|
|
$
|
6,784
|
|
$
|
6,427
|
|
6
|
%
|
|
20.6
|
%
|
21.2
|
%
|
(0.6)pts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Healthcare (GAAP)
|
$
|
19,942
|
|
$
|
19,784
|
|
1
|
%
|
|
$
|
3,896
|
|
$
|
3,698
|
|
5
|
%
|
|
19.5
|
%
|
18.7
|
%
|
0.8pts
|
Less: acquisitions
|
83
|
|
—
|
|
|
|
(19
|
)
|
—
|
|
|
|
|
|
|
||||||||
Less: business dispositions
|
2
|
|
235
|
|
|
|
(27
|
)
|
22
|
|
|
|
|
|
|
||||||||
Less: foreign currency effect
|
(359
|
)
|
—
|
|
|
|
(1
|
)
|
—
|
|
|
|
|
|
|
||||||||
Healthcare organic (Non-GAAP)
|
$
|
20,216
|
|
$
|
19,549
|
|
3
|
%
|
|
$
|
3,944
|
|
$
|
3,676
|
|
7
|
%
|
|
19.5
|
%
|
18.8
|
%
|
0.7pts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
GE Industrial segment (GAAP)
|
$
|
86,778
|
|
$
|
86,789
|
|
—
|
%
|
|
$
|
10,436
|
|
$
|
9,647
|
|
8
|
%
|
|
12.0
|
%
|
11.1
|
%
|
0.9pts
|
Less: acquisitions
|
111
|
|
—
|
|
|
|
(15
|
)
|
—
|
|
|
|
|
|
|
||||||||
Less: business dispositions(a)
|
38
|
|
3,357
|
|
|
|
(24
|
)
|
295
|
|
|
|
|
|
|
||||||||
Less: foreign currency effect(b)
|
(1,424
|
)
|
—
|
|
|
|
136
|
|
—
|
|
|
|
|
|
|
||||||||
GE Industrial segment organic
(Non-GAAP)
|
$
|
88,053
|
|
$
|
83,432
|
|
5.5
|
%
|
|
$
|
10,338
|
|
$
|
9,351
|
|
11
|
%
|
|
11.7
|
%
|
11.2
|
%
|
0.5pts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(a) Dispositions impact in 2018 primarily related to our Industrial Solutions and Distributed Power businesses within our Power segment, with revenues of $1,257 million and $1,274 million, respectively, and Value-Based Care within our Healthcare segment, with revenues of $222 million.
|
|||||||||||||||||||||||
(b) Primarily the euro, Japanese yen and Brazilian real.
|
|||||||||||||||||||||||
We believe these measures provide 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 foreign currency, as these activities can obscure underlying trends. We also believe presenting organic revenues* and organic profit* 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 companies.
|
|||||||||||||||||||||||
When comparing revenues and profit growth between periods excluding the effects of acquisitions, business dispositions and currency exchange rates, those effects are different when comparing results for different periods. Revenues and profit from acquisitions are considered inorganic from the date we complete an acquisition through the end of the fourth quarter following the acquisition and are therefore reflected as adjustments to reported revenues and profit to derive organic revenues* and organic profit* for the period following the acquisition. In subsequent periods, the revenues and profit from the acquisition become organic as these revenues and profit are included for all periods presented.
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
|
GE INDUSTRIAL ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP)
|
|||||||||||||||||||||||
|
Revenues
|
|
Segment profit (loss)
|
|
Profit margin
|
||||||||||||||||||
(Dollars in millions)
|
2018
|
|
2017
|
|
V%
|
|
|
2018
|
|
2017
|
|
V%
|
|
|
2018
|
|
2017
|
|
V pts
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Power (GAAP)
|
$
|
22,150
|
|
$
|
29,426
|
|
(25
|
)%
|
|
$
|
(808
|
)
|
$
|
1,894
|
|
U
|
|
|
(3.6
|
)%
|
6.4
|
%
|
(10)pts
|
Less: acquisitions
|
70
|
|
9
|
|
|
|
(2
|
)
|
—
|
|
|
|
|
|
|
||||||||
Less: business dispositions
|
125
|
|
3,359
|
|
|
|
4
|
|
291
|
|
|
|
|
|
|
||||||||
Less: foreign currency effect
|
368
|
|
—
|
|
|
|
(11
|
)
|
—
|
|
|
|
|
|
|
||||||||
Power organic (Non-GAAP)
|
$
|
21,587
|
|
$
|
26,058
|
|
(17
|
)%
|
|
$
|
(799
|
)
|
$
|
1,602
|
|
U
|
|
|
(3.7
|
)%
|
6.1
|
%
|
(9.8)pts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Renewable Energy (GAAP)
|
$
|
14,288
|
|
$
|
14,321
|
|
—
|
%
|
|
$
|
292
|
|
$
|
728
|
|
(60
|
)%
|
|
2.0
|
%
|
5.1
|
%
|
(3.1)pts
|
Less: acquisitions
|
143
|
|
80
|
|
|
|
45
|
|
1
|
|
|
|
|
|
|
||||||||
Less: business dispositions
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
|
|
|
||||||||
Less: foreign currency effect
|
(75
|
)
|
—
|
|
|
|
(41
|
)
|
—
|
|
|
|
|
|
|
||||||||
Renewable Energy organic (Non-GAAP)
|
$
|
14,220
|
|
$
|
14,242
|
|
—
|
%
|
|
$
|
288
|
|
$
|
727
|
|
(60
|
)%
|
|
2.0
|
%
|
5.1
|
%
|
(3.1)pts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aviation (GAAP)
|
$
|
30,566
|
|
$
|
27,013
|
|
13
|
%
|
|
$
|
6,466
|
|
$
|
5,370
|
|
20
|
%
|
|
21.2
|
%
|
19.9
|
%
|
1.3pts
|
Less: acquisitions
|
4
|
|
2
|
|
|
|
(1
|
)
|
—
|
|
|
|
|
|
|
||||||||
Less: business dispositions
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
|
|
|
||||||||
Less: foreign currency effect
|
28
|
|
—
|
|
|
|
(29
|
)
|
—
|
|
|
|
|
|
|
||||||||
Aviation organic (Non-GAAP)
|
$
|
30,534
|
|
$
|
27,010
|
|
13
|
%
|
|
$
|
6,496
|
|
$
|
5,370
|
|
21
|
%
|
|
21.3
|
%
|
19.9
|
%
|
1.4pts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Healthcare (GAAP)
|
$
|
19,784
|
|
$
|
19,017
|
|
4
|
%
|
|
$
|
3,698
|
|
$
|
3,488
|
|
6
|
%
|
|
18.7
|
%
|
18.3
|
%
|
0.4pts
|
Less: acquisitions
|
6
|
|
1
|
|
|
|
(4
|
)
|
(2
|
)
|
|
|
|
|
|
||||||||
Less: business dispositions
|
13
|
|
267
|
|
|
|
(1
|
)
|
123
|
|
|
|
|
|
|
||||||||
Less: foreign currency effect
|
152
|
|
—
|
|
|
|
52
|
|
—
|
|
|
|
|
|
|
||||||||
Healthcare organic (Non-GAAP)
|
$
|
19,613
|
|
$
|
18,748
|
|
5
|
%
|
|
$
|
3,650
|
|
$
|
3,367
|
|
8
|
%
|
|
18.6
|
%
|
18.0
|
%
|
0.6pts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
GE Industrial segment (GAAP)
|
$
|
86,789
|
|
$
|
89,776
|
|
(3
|
)%
|
|
$
|
9,647
|
|
$
|
11,479
|
|
(16
|
)%
|
|
11.1
|
%
|
12.8
|
%
|
(1.7)pts
|
Less: acquisitions(a)
|
224
|
|
92
|
|
|
|
38
|
|
(1
|
)
|
|
|
|
|
|
||||||||
Less: business dispositions(b)
|
138
|
|
3,626
|
|
|
|
3
|
|
414
|
|
|
|
|
|
|
||||||||
Less: foreign currency effect(c)
|
473
|
|
—
|
|
|
|
(29
|
)
|
—
|
|
|
|
|
|
|
||||||||
GE Industrial segment organic
(Non-GAAP)
|
$
|
85,955
|
|
$
|
86,059
|
|
—
|
%
|
|
$
|
9,634
|
|
$
|
11,066
|
|
(13
|
)%
|
|
11.2
|
%
|
12.9
|
%
|
(1.7)pts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(a) Acquisition impact primarily related to LM Wind within our Renewable Energy segment, with $142 million and $80 million of revenues in 2018 and 2017, respectively.
|
|||||||||||||||||||||||
(b) Dispositions impact in 2017 primarily related to Industrial Solutions, Distributed Power and Water businesses within our Power segment, with $1,368 million, $408 million and $1,516 million of revenues, respectively, and Value-Based Care within our Healthcare segment, with $213 million of revenues.
|
|||||||||||||||||||||||
(c) Primarily the Brazilian real and the Euro.
|
|||||||||||||||||||||||
We believe these measures provide 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 foreign currency, as these activities can obscure underlying trends. We also believe presenting organic revenues* and organic profit* 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 companies.
|
|||||||||||||||||||||||
When comparing revenues and profit growth between periods excluding the effects of acquisitions, business dispositions and currency exchange rates, those effects are different when comparing results for different periods. Revenues and profit from acquisitions are considered inorganic from the date we complete an acquisition through the end of the fourth quarter following the acquisition and are therefore reflected as adjustments to reported revenues and profit to derive organic revenues* and organic profit* for the period following the acquisition. In subsequent periods, the revenues and profit from the acquisition become organic as these revenues and profit are included for all periods presented.
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
|
ADJUSTED GE INDUSTRIAL PROFIT AND PROFIT MARGIN (Dollars in millions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
GE total revenues (GAAP)
|
$
|
87,719
|
|
$
|
89,038
|
|
$
|
92,229
|
|
|
|
|
|
||||||
GE total costs and expenses (GAAP)
|
88,118
|
|
111,967
|
|
92,834
|
|
|||
Less: GE interest and other financial charges
|
2,115
|
|
2,415
|
|
2,538
|
|
|||
Less: non-operating benefit costs
|
2,828
|
|
2,740
|
|
2,409
|
|
|||
Less: restructuring & other(a)
|
1,351
|
|
2,832
|
|
2,914
|
|
|||
Less: goodwill impairments(b)
|
1,486
|
|
22,136
|
|
1,165
|
|
|||
Add: noncontrolling interests
|
6
|
|
(130
|
)
|
(280
|
)
|
|||
Adjusted GE Industrial costs (Non-GAAP)
|
80,343
|
|
81,714
|
|
83,527
|
|
|||
|
|
|
|
||||||
GE other income (GAAP)
|
2,200
|
|
2,317
|
|
1,893
|
|
|||
Less: unrealized gains (losses)(c)
|
793
|
|
—
|
|
—
|
|
|||
Less: restructuring & other
|
36
|
|
(120
|
)
|
(109
|
)
|
|||
Less: gains (losses) and impairments for disposed or held for sale businesses(c)
|
4
|
|
1,370
|
|
926
|
|
|||
Adjusted GE other income (Non-GAAP)
|
1,367
|
|
1,068
|
|
1,076
|
|
|||
|
|
|
|
||||||
GE Industrial profit (GAAP)
|
$
|
1,801
|
|
$
|
(20,612
|
)
|
$
|
1,288
|
|
GE Industrial profit margin (GAAP)
|
2.1
|
%
|
(23.1
|
)%
|
1.4
|
%
|
|||
|
|
|
|
||||||
Adjusted GE Industrial profit (Non-GAAP)
|
$
|
8,743
|
|
$
|
8,392
|
|
$
|
9,778
|
|
Adjusted GE Industrial profit margin (Non-GAAP)
|
10.0
|
%
|
9.4
|
%
|
10.6
|
%
|
|||
|
|
|
|
||||||
(a) See the GE Corporate Items and Eliminations - Restructuring section within MD&A for further information.
|
|||||||||
(b) Related to our Renewable Energy segment in 2019, Power and Renewable Energy segments in 2018 and our Power segment in 2017. See Note 8 to the consolidated financial statements for further information.
|
|||||||||
(c) See the Corporate Items and Eliminations section within MD&A for further information.
|
|||||||||
We believe GE Industrial profit and profit margins adjusted for the items included in the above reconciliation are meaningful measures because they increase the comparability of period-to-period results.
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
|
ADJUSTED GE INDUSTRIAL ORGANIC PROFIT (NON-GAAP) (Dollars in millions)
|
2019
|
|
2018
|
|
V%
|
|
||
|
|
|
|
|||||
Adjusted GE Industrial profit (Non-GAAP)
|
$
|
8,743
|
|
$
|
8,392
|
|
4
|
%
|
Adjustments:
|
|
|
|
|||||
Less: acquisitions
|
(15
|
)
|
—
|
|
|
|||
Less: business dispositions
|
(32
|
)
|
284
|
|
|
|||
Less: foreign currency effect
|
144
|
|
—
|
|
|
|||
Adjusted GE Industrial organic profit (Non-GAAP)
|
$
|
8,646
|
|
$
|
8,107
|
|
7
|
%
|
|
|
|
|
|||||
Adjusted GE Industrial profit margin (Non-GAAP)
|
10.0
|
%
|
9.4
|
%
|
0.6
|
pts
|
||
Adjusted GE Industrial organic profit margin (Non-GAAP)
|
9.7
|
%
|
9.6
|
%
|
0.1
|
pts
|
||
|
|
|
|
|||||
|
2018
|
|
2017
|
|
V%
|
|
||
|
|
|
|
|||||
Adjusted GE Industrial profit (Non-GAAP)
|
$
|
8,392
|
|
$
|
9,778
|
|
(14
|
)%
|
Adjustments:
|
|
|
|
|||||
Less: acquisitions
|
49
|
|
(19
|
)
|
|
|||
Less: business dispositions
|
(3
|
)
|
420
|
|
|
|||
Less: foreign currency effect
|
(64
|
)
|
—
|
|
|
|||
Adjusted GE Industrial organic profit (Non-GAAP)
|
$
|
8,410
|
|
$
|
9,377
|
|
(10
|
)%
|
|
|
|
|
|||||
Adjusted GE Industrial profit margin (Non-GAAP)
|
9.4
|
%
|
10.6
|
%
|
(1.2
|
)pts
|
||
Adjusted GE Industrial organic profit margin (Non-GAAP)
|
9.5
|
%
|
10.6
|
%
|
(1.1
|
)pts
|
||
|
|
|
|
|||||
We believe 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 foreign currency, as these activities can obscure underlying trends.
|
GE EFFECTIVE TAX RATES, EXCLUDING GE CAPITAL EARNINGS (NON-GAAP)
(Dollars in millions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
GE earnings (loss) from continuing operations before income taxes (GAAP)
|
$
|
1,271
|
|
$
|
(21,101
|
)
|
$
|
(5,476
|
)
|
Less: GE Capital earnings (loss) from continuing operations
|
(530
|
)
|
(489
|
)
|
(6,765
|
)
|
|||
Total
|
$
|
1,801
|
|
$
|
(20,612
|
)
|
$
|
1,289
|
|
|
|
|
|
||||||
GE provision for income taxes (GAAP)
|
$
|
1,309
|
|
$
|
467
|
|
$
|
3,493
|
|
GE effective tax rate, excluding GE Capital earnings (Non-GAAP)
|
72.7
|
%
|
(2.3)
|
%
|
271.0
|
%
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
|
ADJUSTED EARNINGS (LOSS) AND ADJUSTED EPS
|
2019
|
2018
|
2017
|
|||||||||||||||
(NON-GAAP) (In millions, per-share amounts in dollars)
|
Earnings
|
|
EPS
|
|
Earnings
|
|
EPS
|
|
Earnings
|
|
EPS
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Consolidated earnings (loss) from continuing operations
attributable to GE common shareholders (GAAP) |
$
|
(44
|
)
|
$
|
(0.01
|
)
|
$
|
(21,438
|
)
|
$
|
(2.47
|
)
|
$
|
(8,689
|
)
|
$
|
(1.00
|
)
|
Less: GE Capital earnings (loss) from continuing operations
attributable to GE common shareholders (GAAP) |
(530
|
)
|
(0.06
|
)
|
(489
|
)
|
(0.06
|
)
|
(6,765
|
)
|
(0.78
|
)
|
||||||
GE Industrial earnings (loss) (Non-GAAP)
|
486
|
|
0.06
|
|
(20,949
|
)
|
(2.41
|
)
|
(1,924
|
)
|
(0.22
|
)
|
||||||
Non-operating benefits costs (pre-tax) (GAAP)
|
(2,828
|
)
|
(0.32
|
)
|
(2,740
|
)
|
(0.32
|
)
|
(2,409
|
)
|
(0.28
|
)
|
||||||
Tax effect on non-operating benefit costs
|
594
|
|
0.07
|
|
575
|
|
0.07
|
|
843
|
|
0.10
|
|
||||||
Less: non-operating benefit costs (net of tax)
|
(2,234
|
)
|
(0.26
|
)
|
(2,165
|
)
|
(0.25
|
)
|
(1,566
|
)
|
(0.18
|
)
|
||||||
Gains (losses) and impairments for disposed or held for sale businesses (pre-tax)(a)
|
4
|
|
—
|
|
1,370
|
|
0.16
|
|
926
|
|
0.11
|
|
||||||
Tax effect on gains (losses) and impairments for disposed or held for sale businesses
|
34
|
|
—
|
|
(380
|
)
|
(0.04
|
)
|
(62
|
)
|
(0.01
|
)
|
||||||
Less: gains (losses) and impairments for disposed or held for sale
businesses (net of tax)
|
39
|
|
—
|
|
990
|
|
0.11
|
|
864
|
|
0.10
|
|
||||||
Restructuring & other (pre-tax)(b)
|
(1,315
|
)
|
(0.15
|
)
|
(2,952
|
)
|
(0.34
|
)
|
(3,024
|
)
|
(0.35
|
)
|
||||||
Tax effect on restructuring & other
|
277
|
|
0.03
|
|
338
|
|
0.04
|
|
893
|
|
0.10
|
|
||||||
Less: restructuring & other (net of tax)
|
(1,039
|
)
|
(0.12
|
)
|
(2,614
|
)
|
(0.30
|
)
|
(2,131
|
)
|
(0.25
|
)
|
||||||
Goodwill impairments (pre-tax)(c)
|
(1,486
|
)
|
(0.17
|
)
|
(22,136
|
)
|
(2.55
|
)
|
(1,165
|
)
|
(0.13
|
)
|
||||||
Tax effect on goodwill impairments
|
(55
|
)
|
(0.01
|
)
|
(235
|
)
|
(0.03
|
)
|
9
|
|
—
|
|
||||||
Less: goodwill impairments (net of tax)
|
(1,541
|
)
|
(0.18
|
)
|
(22,371
|
)
|
(2.57
|
)
|
(1,156
|
)
|
(0.13
|
)
|
||||||
Unrealized gains (losses) (pre-tax)
|
793
|
|
0.09
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Tax effect on unrealized gains (losses)
|
(114
|
)
|
(0.01
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Less: unrealized gains (losses) (net of tax)
|
679
|
|
0.08
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Debt extinguishment costs
|
(255
|
)
|
(0.03
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Tax effect on debt extinguishment costs
|
53
|
|
0.01
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Less: Debt extinguishment costs (net of tax)
|
(201
|
)
|
(0.02
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
BioPharma deal expense (pre-tax)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Tax on BioPharma deal expense
|
(647
|
)
|
(0.07
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Less: BioPharma deal expense (net of tax)
|
(647
|
)
|
(0.07
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Less: GE Industrial U.S. tax reform enactment adjustment
|
(101
|
)
|
(0.01
|
)
|
(38
|
)
|
—
|
|
(4,905
|
)
|
(0.56
|
)
|
||||||
Adjusted GE Industrial earnings (loss) (Non-GAAP)
|
$
|
5,531
|
|
$
|
0.63
|
|
$
|
5,249
|
|
$
|
0.60
|
|
$
|
6,970
|
|
$
|
0.80
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GE Capital earnings (loss) from continuing operations attributable
to GE common shareholders (GAAP) |
(530
|
)
|
(0.06
|
)
|
(489
|
)
|
(0.06
|
)
|
(6,765
|
)
|
(0.78
|
)
|
||||||
Insurance charges and EFS impairments (pre-tax)
|
(972
|
)
|
(0.11
|
)
|
—
|
|
—
|
|
(11,444
|
)
|
(1.32
|
)
|
||||||
Tax effect on insurance charges and EFS impairments
|
204
|
|
0.02
|
|
—
|
|
—
|
|
3,501
|
|
0.40
|
|
||||||
Less: Insurance charges and EFS impairments (net of tax)
|
(768
|
)
|
(0.09
|
)
|
—
|
|
—
|
|
(7,943
|
)
|
(0.91
|
)
|
||||||
Less: GE Capital U.S. tax reform enactment adjustment
|
99
|
|
0.01
|
|
(173
|
)
|
(0.02
|
)
|
206
|
|
0.02
|
|
||||||
Adjusted GE Capital earnings (loss) (Non-GAAP)
|
$
|
139
|
|
$
|
0.02
|
|
$
|
(316
|
)
|
$
|
(0.04
|
)
|
$
|
972
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted GE Industrial earnings (loss) (Non-GAAP)
|
$
|
5,531
|
|
$
|
0.63
|
|
$
|
5,249
|
|
$
|
0.60
|
|
$
|
6,970
|
|
$
|
0.80
|
|
Add: Adjusted GE Capital earnings (loss) (Non-GAAP)
|
139
|
|
0.02
|
|
(316
|
)
|
(0.04
|
)
|
972
|
|
0.11
|
|
||||||
Adjusted earnings (loss) (Non-GAAP)
|
$
|
5,671
|
|
$
|
0.65
|
|
$
|
4,933
|
|
$
|
0.57
|
|
$
|
7,942
|
|
$
|
0.91
|
|
|
|
|
|
|
|
|
||||||||||||
(a) See the Corporate Items and Eliminations section within MD&A for further information.
|
||||||||||||||||||
(b) See the GE Corporate Items and Eliminations - Restructuring section within MD&A for further information.
|
||||||||||||||||||
(c) Related to our Renewable Energy segment in 2019, Power and Renewable Energy segments in 2018 and our Power segment in 2017. See Note 8 to the consolidated financial statements for further information.
|
||||||||||||||||||
The service cost for 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. We believe the retained costs in Adjusted earnings* and 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 presenting Adjusted Industrial earnings* and 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
|
|
GE INDUSTRIAL FREE CASH FLOWS (FCF) (NON-GAAP) (In millions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
GE CFOA (GAAP)
|
$
|
4,614
|
|
$
|
701
|
|
$
|
11,479
|
|
Add: gross additions to property, plant and equipment
|
(2,216
|
)
|
(2,234
|
)
|
(3,403
|
)
|
|||
Add: gross additions to internal-use software
|
(274
|
)
|
(306
|
)
|
(423
|
)
|
|||
Less: common dividends from GE Capital
|
—
|
|
—
|
|
4,016
|
|
|||
Less: GE Pension Plan funding
|
—
|
|
(6,000
|
)
|
(1,717
|
)
|
|||
Less: taxes related to business sales
|
(198
|
)
|
(180
|
)
|
(229
|
)
|
|||
GE Industrial free cash flows (Non-GAAP)
|
$
|
2,322
|
|
$
|
4,341
|
|
$
|
5,582
|
|
|
|
|
|
||||||
We believe investors may find it useful to compare GE's Industrial free cash flows* performance without the effects of cash used for taxes related to business sales and contributions to the GE Pension Plan. We believe this measure will better allow management and investors to evaluate the capacity of our industrial operations to generate free cash flows.
|
General Electric Company (In millions; per-share amounts in dollars)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
|||||
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
95,214
|
|
$
|
97,012
|
|
$
|
99,279
|
|
$
|
103,297
|
|
$
|
94,494
|
|
Earnings (loss) from continuing operations attributable to the Company
|
416
|
|
(20,991
|
)
|
(8,253
|
)
|
7,454
|
|
(7
|
)
|
|||||
Earnings (loss) from discontinued operations, net of taxes, attributable to the Company
|
(5,395
|
)
|
(1,364
|
)
|
(231
|
)
|
47
|
|
(5,068
|
)
|
|||||
Net earnings (loss) attributable to the Company
|
(4,979
|
)
|
(22,355
|
)
|
(8,484
|
)
|
7,500
|
|
(5,074
|
)
|
|||||
Dividends declared
|
810
|
|
3,669
|
|
7,741
|
|
9,054
|
|
9,161
|
|
|||||
Preferred stocks dividends
|
460
|
|
447
|
|
436
|
|
656
|
|
18
|
|
|||||
Per common share:
|
|
|
|
|
|
||||||||||
Earnings (loss) from continuing operations – diluted
|
$
|
(0.01
|
)
|
$
|
(2.47
|
)
|
$
|
(1.00
|
)
|
$
|
0.74
|
|
$
|
(0.13
|
)
|
Earnings (loss) from discontinued operations – diluted
|
(0.62
|
)
|
(0.16
|
)
|
(0.03
|
)
|
—
|
|
(0.51
|
)
|
|||||
Net earnings (loss) – diluted
|
(0.62
|
)
|
(2.62
|
)
|
(1.03
|
)
|
0.75
|
|
(0.64
|
)
|
|||||
Earnings (loss) from continuing operations – basic
|
(0.01
|
)
|
(2.47
|
)
|
(1.00
|
)
|
0.75
|
|
(0.13
|
)
|
|||||
Earnings (loss) from discontinued operations – basic
|
(0.62
|
)
|
(0.16
|
)
|
(0.03
|
)
|
0.01
|
|
(0.51
|
)
|
|||||
Net earnings (loss) – basic
|
(0.62
|
)
|
(2.62
|
)
|
(1.03
|
)
|
0.76
|
|
(0.64
|
)
|
|||||
Dividends declared
|
0.04
|
|
0.37
|
|
0.84
|
|
0.93
|
|
0.92
|
|
|||||
Total assets
|
266,048
|
|
311,072
|
|
371,099
|
|
361,014
|
|
491,109
|
|
|||||
Short-term borrowings
|
22,072
|
|
12,776
|
|
23,087
|
|
30,519
|
|
49,540
|
|
|||||
Non-recourse borrowings of consolidated securitization entities
|
1,655
|
|
1,875
|
|
1,980
|
|
417
|
|
3,083
|
|
|||||
Long-term borrowings
|
67,155
|
|
88,949
|
|
102,263
|
|
105,192
|
|
144,594
|
|
OTHER FINANCIAL DATA
|
|
|
FIVE-YEAR PERFORMANCE GRAPH
|
|
RISK FACTORS
|
|
|
RISK FACTORS
|
|
|
RISK FACTORS
|
|
|
RISK FACTORS
|
|
|
RISK FACTORS
|
|
|
RISK FACTORS
|
|
|
RISK FACTORS
|
|
|
REPORTS
|
|
|
/s/ H. Lawrence Culp, Jr.
|
|
/s/ Jamie S. Miller
|
H. Lawrence Culp, Jr.
|
|
Jamie S. Miller
|
Chairman of the Board and Chief Executive Officer
|
|
Senior Vice President and Chief Financial Officer
|
February 24, 2020
|
|
|
REPORTS
|
|
|
REPORTS
|
|
|
•
|
comparing estimated labor and part costs to historical labor and parts costs,
|
•
|
comparing the estimated useful life, which is referred to as part life, of certain component parts to historical data and regulatory limits on part life, where applicable,
|
•
|
inspecting evidence underlying the inclusion of cost improvements in estimated costs, including regulatory and engineering approvals and actual reductions in production costs to date, and
|
•
|
ascertaining if major overhauls of covered assets are included in the cost estimates on a basis consistent with the estimated customer utilization of the assets that is used in estimating customer payments.
|
•
|
challenging the Company’s key assumptions and results by evaluating the relevance, reliability, and consistency of the assumptions with each other, the underlying data, relevant historical data, and industry data,
|
•
|
assessing the summary experience data and the corresponding actuarial assumptions for conformity with generally accepted actuarial principles,
|
•
|
performing recalculations to assess that the key assumptions were reflected in the cash flow projections, and
|
•
|
comparing the current year and prior year cash flow projections to analyze the impact of the updated key assumptions to the cash flows.
|
REPORTS
|
|
|
•
|
comparing the projected amounts to industry benchmark data, and
|
•
|
evaluating sensitivity analyses related to key inputs, including long-term revenue growth rates and projected operating profit.
|
•
|
evaluating the Company’s interpretation and application of relevant tax laws and regulations related to the tax positions, including income tax uncertainties, and
|
•
|
assessing the Company’s computation of the effects of the tax positions.
|
/s/ KPMG LLP
|
KPMG LLP
We have served as the Company's auditor since 1909.
Boston, Massachusetts
|
February 24, 2020
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF EARNINGS (LOSS)
|
Consolidated
|
||||||||
(In millions; per-share amounts in dollars)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Sales of goods
|
$
|
58,949
|
|
$
|
60,148
|
|
$
|
62,709
|
|
Sales of services
|
28,538
|
|
28,792
|
|
29,233
|
|
|||
GE Capital revenues from services
|
7,728
|
|
8,072
|
|
7,337
|
|
|||
Total revenues (Note 26)
|
95,214
|
|
97,012
|
|
99,279
|
|
|||
|
|
|
|
||||||
Cost of goods sold
|
48,406
|
|
50,244
|
|
52,483
|
|
|||
Cost of services sold
|
21,622
|
|
22,574
|
|
23,110
|
|
|||
Selling, general and administrative expenses
|
13,949
|
|
14,643
|
|
14,257
|
|
|||
Interest and other financial charges
|
4,227
|
|
4,766
|
|
4,655
|
|
|||
Insurance losses and annuity benefits (Note 12)
|
3,294
|
|
2,790
|
|
12,168
|
|
|||
Goodwill impairments (Note 8)
|
1,486
|
|
22,136
|
|
2,550
|
|
|||
Non-operating benefit costs
|
2,844
|
|
2,753
|
|
2,423
|
|
|||
Other costs and expenses
|
458
|
|
414
|
|
1,060
|
|
|||
Total costs and expenses
|
96,287
|
|
120,320
|
|
112,707
|
|
|||
|
|
|
|
||||||
Other income (Note 19)
|
2,222
|
|
2,321
|
|
2,083
|
|
|||
GE Capital earnings (loss) from continuing operations
|
—
|
|
—
|
|
—
|
|
|||
|
|
|
|
||||||
Earnings (loss) from continuing operations
before income taxes
|
1,149
|
|
(20,987
|
)
|
(11,345
|
)
|
|||
Benefit (provision) for income taxes (Note 15)
|
(726
|
)
|
(93
|
)
|
2,808
|
|
|||
Earnings (loss) from continuing operations
|
423
|
|
(21,080
|
)
|
(8,536
|
)
|
|||
Earnings (loss) from discontinued operations,
net of taxes (Note 2)
|
(5,335
|
)
|
(1,363
|
)
|
(312
|
)
|
|||
Net earnings (loss)
|
(4,912
|
)
|
(22,443
|
)
|
(8,849
|
)
|
|||
Less net earnings (loss) attributable to noncontrolling
interests
|
66
|
|
(89
|
)
|
(365
|
)
|
|||
Net earnings (loss) attributable to the Company
|
(4,979
|
)
|
(22,355
|
)
|
(8,484
|
)
|
|||
Preferred stock dividends
|
(460
|
)
|
(447
|
)
|
(436
|
)
|
|||
Net earnings (loss) attributable to GE common
shareholders
|
$
|
(5,439
|
)
|
$
|
(22,802
|
)
|
$
|
(8,920
|
)
|
|
|
|
|
||||||
Amounts attributable to GE common shareholders
|
|
|
|
||||||
Earnings (loss) from continuing operations
|
$
|
423
|
|
$
|
(21,080
|
)
|
$
|
(8,536
|
)
|
Less net earnings (loss) attributable to
noncontrolling interests, continuing operations
|
7
|
|
(90
|
)
|
(283
|
)
|
|||
Earnings (loss) from continuing operations attributable
to the Company
|
416
|
|
(20,991
|
)
|
(8,253
|
)
|
|||
Preferred stock dividends
|
(460
|
)
|
(447
|
)
|
(436
|
)
|
|||
Earnings (loss) from continuing operations attributable
to GE common shareholders
|
(44
|
)
|
(21,438
|
)
|
(8,689
|
)
|
|||
Earnings (loss) from discontinued operations,
net of taxes
|
(5,335
|
)
|
(1,363
|
)
|
(312
|
)
|
|||
Less net earnings (loss) attributable to
noncontrolling interests, discontinued operations
|
60
|
|
1
|
|
(81
|
)
|
|||
Net earnings (loss) attributable to
GE common shareholders
|
$
|
(5,439
|
)
|
$
|
(22,802
|
)
|
$
|
(8,920
|
)
|
|
|
|
|
||||||
Per-share amounts (Note 18)
|
|
|
|
||||||
Earnings (loss) from continuing operations
|
|
|
|
||||||
Diluted earnings (loss) per share
|
$
|
(0.01
|
)
|
$
|
(2.47
|
)
|
$
|
(1.00
|
)
|
Basic earnings (loss) per share
|
$
|
(0.01
|
)
|
$
|
(2.47
|
)
|
$
|
(1.00
|
)
|
|
|
|
|
||||||
Net earnings (loss)
|
|
|
|
||||||
Diluted earnings (loss) per share
|
$
|
(0.62
|
)
|
$
|
(2.62
|
)
|
$
|
(1.03
|
)
|
Basic earnings (loss) per share
|
$
|
(0.62
|
)
|
$
|
(2.62
|
)
|
$
|
(1.03
|
)
|
|
|
|
|
||||||
Dividends declared per common share
|
$
|
0.04
|
|
$
|
0.37
|
|
$
|
0.84
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF EARNINGS (LOSS) (CONTINUED)
|
GE(a)
|
|
GE Capital
|
||||||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
|
|
2019
|
|
2018
|
|
2017
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Sales of goods
|
$
|
59,138
|
|
$
|
60,147
|
|
$
|
62,786
|
|
|
$
|
79
|
|
$
|
121
|
|
$
|
130
|
|
Sales of services
|
28,581
|
|
28,891
|
|
29,443
|
|
|
—
|
|
—
|
|
—
|
|
||||||
GE Capital revenues from services
|
—
|
|
—
|
|
—
|
|
|
8,662
|
|
9,430
|
|
8,940
|
|
||||||
Total revenues (Note 26)
|
87,719
|
|
89,038
|
|
92,229
|
|
|
8,741
|
|
9,551
|
|
9,070
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Cost of goods sold
|
48,620
|
|
50,265
|
|
52,588
|
|
|
61
|
|
95
|
|
102
|
|
||||||
Cost of services sold
|
19,665
|
|
20,611
|
|
21,062
|
|
|
2,019
|
|
2,089
|
|
2,196
|
|
||||||
Selling, general and administrative expenses
|
13,404
|
|
13,851
|
|
13,094
|
|
|
931
|
|
1,341
|
|
1,662
|
|
||||||
Interest and other financial charges
|
2,115
|
|
2,415
|
|
2,538
|
|
|
2,532
|
|
2,982
|
|
3,145
|
|
||||||
Insurance losses and annuity benefits (Note 12)
|
—
|
|
—
|
|
—
|
|
|
3,353
|
|
2,849
|
|
12,213
|
|
||||||
Goodwill impairments (Note 8)
|
1,486
|
|
22,136
|
|
1,165
|
|
|
—
|
|
—
|
|
1,386
|
|
||||||
Non-operating benefit costs
|
2,828
|
|
2,740
|
|
2,409
|
|
|
16
|
|
12
|
|
14
|
|
||||||
Other costs and expenses
|
—
|
|
(51
|
)
|
(22
|
)
|
|
480
|
|
558
|
|
986
|
|
||||||
Total costs and expenses
|
88,118
|
|
111,967
|
|
92,834
|
|
|
9,392
|
|
9,926
|
|
21,703
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Other income (Note 19)
|
2,200
|
|
2,317
|
|
1,893
|
|
|
—
|
|
—
|
|
—
|
|
||||||
GE Capital earnings (loss) from continuing operations
|
(530
|
)
|
(489
|
)
|
(6,765
|
)
|
|
—
|
|
—
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Earnings (loss) from continuing operations
before income taxes
|
1,271
|
|
(21,101
|
)
|
(5,476
|
)
|
|
(652
|
)
|
(375
|
)
|
(12,633
|
)
|
||||||
Benefit (provision) for income taxes (Note 15)
|
(1,309
|
)
|
(467
|
)
|
(3,493
|
)
|
|
582
|
|
374
|
|
6,302
|
|
||||||
Earnings (loss) from continuing operations
|
(38
|
)
|
(21,568
|
)
|
(8,970
|
)
|
|
(69
|
)
|
(1
|
)
|
(6,331
|
)
|
||||||
Earnings (loss) from discontinued operations,
net of taxes (Note 2)
|
(5,335
|
)
|
(1,363
|
)
|
(319
|
)
|
|
192
|
|
(1,670
|
)
|
(312
|
)
|
||||||
Net earnings (loss)
|
(5,373
|
)
|
(22,931
|
)
|
(9,288
|
)
|
|
123
|
|
(1,672
|
)
|
(6,643
|
)
|
||||||
Less net earnings (loss) attributable to noncontrolling
interests
|
66
|
|
(129
|
)
|
(368
|
)
|
|
1
|
|
40
|
|
4
|
|
||||||
Net earnings (loss) attributable to the Company
|
(5,439
|
)
|
(22,802
|
)
|
(8,920
|
)
|
|
122
|
|
(1,712
|
)
|
(6,647
|
)
|
||||||
Preferred stock dividends
|
—
|
|
—
|
|
—
|
|
|
(460
|
)
|
(447
|
)
|
(436
|
)
|
||||||
Net earnings (loss) attributable to GE common shareholders
|
$
|
(5,439
|
)
|
$
|
(22,802
|
)
|
$
|
(8,920
|
)
|
|
$
|
(338
|
)
|
$
|
(2,159
|
)
|
$
|
(7,083
|
)
|
|
|
|
|
|
|
|
|
||||||||||||
Amounts attributable to GE common shareholders:
|
|
|
|
|
|
|
|
||||||||||||
Earnings (loss) from continuing operations
|
$
|
(38
|
)
|
$
|
(21,568
|
)
|
$
|
(8,970
|
)
|
|
$
|
(69
|
)
|
$
|
(1
|
)
|
$
|
(6,331
|
)
|
Less net earnings (loss) attributable to
noncontrolling interests, continuing operations
|
6
|
|
(130
|
)
|
(280
|
)
|
|
1
|
|
40
|
|
(3
|
)
|
||||||
Earnings (loss) from continuing operations attributable
to the Company
|
(44
|
)
|
(21,438
|
)
|
(8,689
|
)
|
|
(70
|
)
|
(42
|
)
|
(6,328
|
)
|
||||||
Preferred stock dividends
|
—
|
|
—
|
|
—
|
|
|
(460
|
)
|
(447
|
)
|
(436
|
)
|
||||||
Earnings (loss) from continuing operations attributable
to GE common shareholders
|
(44
|
)
|
(21,438
|
)
|
(8,689
|
)
|
|
(530
|
)
|
(489
|
)
|
(6,765
|
)
|
||||||
Earnings (loss) from discontinued operations,
net of taxes
|
(5,335
|
)
|
(1,363
|
)
|
(319
|
)
|
|
192
|
|
(1,670
|
)
|
(312
|
)
|
||||||
Less net earnings (loss) attributable to
noncontrolling interests, discontinued operations
|
60
|
|
1
|
|
(88
|
)
|
|
—
|
|
—
|
|
6
|
|
||||||
Net earnings (loss) attributable to
GE common shareholders
|
$
|
(5,439
|
)
|
$
|
(22,802
|
)
|
$
|
(8,920
|
)
|
|
$
|
(338
|
)
|
$
|
(2,159
|
)
|
$
|
(7,083
|
)
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF FINANCIAL POSITION
|
Consolidated
|
|||||
December 31 (In millions, except share amounts)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Cash, cash equivalents and restricted cash
|
$
|
36,394
|
|
$
|
31,124
|
|
Investment securities (Note 3)
|
48,521
|
|
33,508
|
|
||
Current receivables (Note 4)
|
16,769
|
|
14,645
|
|
||
Financing receivables – net (Note 5)
|
3,134
|
|
7,699
|
|
||
Inventories (Note 6)
|
14,104
|
|
13,803
|
|
||
Other GE Capital receivables
|
7,144
|
|
7,143
|
|
||
Property, plant and equipment – net (Note 7)
|
43,290
|
|
43,611
|
|
||
Operating lease assets (Note 7)
|
2,896
|
|
—
|
|
||
Receivable from GE Capital
|
—
|
|
—
|
|
||
Investment in GE Capital
|
—
|
|
—
|
|
||
Goodwill (Note 8)
|
26,734
|
|
33,974
|
|
||
Other intangible assets – net (Note 8)
|
10,653
|
|
12,178
|
|
||
Contract and other deferred assets (Note 9)
|
16,801
|
|
17,431
|
|
||
All other assets (Note 10)
|
16,461
|
|
18,357
|
|
||
Deferred income taxes (Note 15)
|
9,889
|
|
12,117
|
|
||
Assets of businesses held for sale (Note 2)
|
9,149
|
|
1,629
|
|
||
Assets of discontinued operations (Note 2)
|
4,109
|
|
63,853
|
|
||
Total assets
|
$
|
266,048
|
|
$
|
311,072
|
|
|
|
|
||||
Short-term borrowings (Note 11)
|
$
|
22,072
|
|
$
|
12,776
|
|
Short-term borrowings assumed by GE (Note 11)
|
—
|
|
—
|
|
||
Accounts payable, principally trade accounts
|
15,926
|
|
13,826
|
|
||
Progress collections and deferred income (Note 9)
|
20,508
|
|
18,983
|
|
||
Other GE current liabilities (Note 14)
|
15,753
|
|
14,866
|
|
||
Non-recourse borrowings of consolidated securitization entities (Note 11)
|
1,655
|
|
1,875
|
|
||
Long-term borrowings (Note 11)
|
67,155
|
|
88,949
|
|
||
Long-term borrowings assumed by GE (Note 11)
|
—
|
|
—
|
|
||
Operating lease liabilities (Note 7)
|
3,162
|
|
—
|
|
||
Insurance liabilities and annuity benefits (Note 12)
|
39,826
|
|
35,562
|
|
||
Non-current compensation and benefits
|
31,687
|
|
31,928
|
|
||
All other liabilities (Note 14)
|
16,583
|
|
20,839
|
|
||
Liabilities of businesses held for sale (Note 2)
|
1,658
|
|
708
|
|
||
Liabilities of discontinued operations (Note 2)
|
203
|
|
19,281
|
|
||
Total liabilities
|
236,187
|
|
259,591
|
|
||
|
|
|
||||
Preferred stock (5,939,875 shares outstanding at both
December 31, 2019 and December 31, 2018)
|
6
|
|
6
|
|
||
Common stock (8,738,434,000 and 8,702,227,000 shares outstanding
at December 31, 2019 and December 31, 2018, respectively)
|
702
|
|
702
|
|
||
Accumulated other comprehensive income (loss) – net attributable to GE
|
(11,732
|
)
|
(14,414
|
)
|
||
Other capital
|
34,405
|
|
35,504
|
|
||
Retained earnings
|
87,732
|
|
93,109
|
|
||
Less common stock held in treasury
|
(82,797
|
)
|
(83,925
|
)
|
||
Total GE shareholders’ equity
|
28,316
|
|
30,981
|
|
||
Noncontrolling interests (Note 16)
|
1,545
|
|
20,500
|
|
||
Total equity
|
29,861
|
|
51,481
|
|
||
Total liabilities and equity
|
$
|
266,048
|
|
$
|
311,072
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF FINANCIAL POSITION (CONTINUED)
|
GE(a)
|
|
GE Capital
|
||||||||||
December 31 (In millions, except share amounts)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||
|
|
|
|
|
|
||||||||
Cash, cash equivalents and restricted cash
|
$
|
17,613
|
|
$
|
16,632
|
|
|
$
|
18,781
|
|
$
|
14,492
|
|
Investment securities (Note 3)
|
10,008
|
|
187
|
|
|
38,514
|
|
33,393
|
|
||||
Current receivables (Note 4)
|
13,883
|
|
10,262
|
|
|
—
|
|
—
|
|
||||
Financing receivables – net (Note 5)
|
—
|
|
—
|
|
|
6,979
|
|
13,628
|
|
||||
Inventories (Note 6)
|
14,104
|
|
13,803
|
|
|
—
|
|
—
|
|
||||
Other GE Capital receivables
|
—
|
|
—
|
|
|
11,767
|
|
15,361
|
|
||||
Property, plant and equipment – net (Note 7)
|
14,370
|
|
14,828
|
|
|
29,649
|
|
29,510
|
|
||||
Operating lease assets (Note 7)
|
3,077
|
|
—
|
|
|
237
|
|
—
|
|
||||
Receivable from GE Capital
|
19,142
|
|
22,513
|
|
|
—
|
|
—
|
|
||||
Investment in GE Capital
|
15,299
|
|
11,412
|
|
|
—
|
|
—
|
|
||||
Goodwill (Note 8)
|
25,895
|
|
33,070
|
|
|
839
|
|
904
|
|
||||
Other intangible assets – net (Note 8)
|
10,461
|
|
11,942
|
|
|
192
|
|
236
|
|
||||
Contract and other deferred assets (Note 9)
|
16,833
|
|
17,431
|
|
|
—
|
|
—
|
|
||||
All other assets (Note 10)
|
8,399
|
|
8,578
|
|
|
8,648
|
|
9,869
|
|
||||
Deferred income taxes (Note 15)
|
8,189
|
|
10,176
|
|
|
1,700
|
|
1,936
|
|
||||
Assets of businesses held for sale (Note 2)
|
8,626
|
|
1,524
|
|
|
241
|
|
—
|
|
||||
Assets of discontinued operations (Note 2)
|
202
|
|
59,169
|
|
|
3,907
|
|
4,610
|
|
||||
Total assets
|
$
|
186,100
|
|
$
|
231,526
|
|
|
$
|
121,454
|
|
$
|
123,939
|
|
|
|
|
|
|
|
||||||||
Short-term borrowings (Note 11)
|
$
|
5,606
|
|
$
|
5,147
|
|
|
$
|
12,030
|
|
$
|
4,999
|
|
Short-term borrowings assumed by GE (Note 11)
|
5,473
|
|
4,207
|
|
|
2,104
|
|
2,684
|
|
||||
Accounts payable, principally trade accounts
|
17,702
|
|
17,579
|
|
|
886
|
|
1,171
|
|
||||
Progress collections and deferred income (Note 9)
|
20,694
|
|
19,239
|
|
|
—
|
|
—
|
|
||||
Other GE current liabilities (Note 14)
|
16,833
|
|
16,444
|
|
|
—
|
|
—
|
|
||||
Non-recourse borrowings of consolidated securitization entities (Note 11)
|
—
|
|
—
|
|
|
1,655
|
|
1,875
|
|
||||
Long-term borrowings (Note 11)
|
15,085
|
|
20,804
|
|
|
26,175
|
|
36,154
|
|
||||
Long-term borrowings assumed by GE (Note 11)
|
25,895
|
|
32,054
|
|
|
17,038
|
|
19,828
|
|
||||
Operating lease liabilities (Note 7)
|
3,369
|
|
—
|
|
|
238
|
|
—
|
|
||||
Insurance liabilities and annuity benefits (Note 12)
|
—
|
|
—
|
|
|
40,232
|
|
35,994
|
|
||||
Non-current compensation and benefits
|
31,208
|
|
31,461
|
|
|
472
|
|
459
|
|
||||
All other liabilities (Note 14)
|
12,787
|
|
14,881
|
|
|
5,040
|
|
7,562
|
|
||||
Liabilities of businesses held for sale (Note 2)
|
1,620
|
|
748
|
|
|
52
|
|
—
|
|
||||
Liabilities of discontinued operations (Note 2)
|
106
|
|
17,481
|
|
|
97
|
|
1,800
|
|
||||
Total liabilities
|
156,379
|
|
180,045
|
|
|
106,016
|
|
112,527
|
|
||||
|
|
|
|
|
|
||||||||
Preferred stock (5,939,875 shares outstanding at both
December 31, 2019 and December 31, 2018) |
6
|
|
6
|
|
|
6
|
|
6
|
|
||||
Common stock (8,738,434,000 and 8,702,227,000 shares outstanding
at December 31, 2019 and December 31, 2018, respectively) |
702
|
|
702
|
|
|
—
|
|
—
|
|
||||
Accumulated other comprehensive income (loss) – net attributable to GE
|
(11,732
|
)
|
(14,414
|
)
|
|
(852
|
)
|
(783
|
)
|
||||
Other capital
|
34,405
|
|
35,504
|
|
|
17,001
|
|
12,883
|
|
||||
Retained earnings
|
87,732
|
|
93,109
|
|
|
(857
|
)
|
(694
|
)
|
||||
Less common stock held in treasury
|
(82,797
|
)
|
(83,925
|
)
|
|
—
|
|
—
|
|
||||
Total GE shareholders’ equity
|
28,316
|
|
30,981
|
|
|
15,299
|
|
11,412
|
|
||||
Noncontrolling interests (Note 16)
|
1,406
|
|
20,499
|
|
|
139
|
|
1
|
|
||||
Total equity
|
29,721
|
|
51,480
|
|
|
15,438
|
|
11,412
|
|
||||
Total liabilities and equity
|
$
|
186,100
|
|
$
|
231,526
|
|
|
$
|
121,454
|
|
$
|
123,939
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF CASH FLOWS
|
Consolidated
|
||||||||
For the years ended December 31 (In millions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Net earnings (loss)
|
$
|
(4,912
|
)
|
$
|
(22,443
|
)
|
$
|
(8,849
|
)
|
(Earnings) loss from discontinued operations
|
5,335
|
|
1,363
|
|
312
|
|
|||
Adjustments to reconcile net earnings (loss) to cash provided from
operating activities:
|
|
|
|
||||||
Depreciation and amortization of property, plant and equipment (Note 7)
|
4,026
|
|
4,419
|
|
4,332
|
|
|||
Amortization of intangible assets (Note 8)
|
1,569
|
|
2,163
|
|
1,862
|
|
|||
Goodwill impairments (Note 8)
|
1,486
|
|
22,136
|
|
2,550
|
|
|||
(Earnings) loss from continuing operations retained by GE Capital
|
—
|
|
—
|
|
—
|
|
|||
(Gains) losses on purchases and sales of business interests (Note 19)
|
(53
|
)
|
(1,522
|
)
|
(1,024
|
)
|
|||
Principal pension plans cost (Note 13)
|
3,878
|
|
4,226
|
|
3,687
|
|
|||
Principal pension plans employer contributions (Note 13)
|
(298
|
)
|
(6,283
|
)
|
(1,978
|
)
|
|||
Other postretirement benefit plans (net) (Note 13)
|
(1,228
|
)
|
(1,033
|
)
|
(888
|
)
|
|||
Provision (benefit) for income taxes (Note 15)
|
726
|
|
93
|
|
(2,808
|
)
|
|||
Cash recovered (paid) during the year for income taxes
|
(1,950
|
)
|
(1,404
|
)
|
(1,924
|
)
|
|||
Decrease (increase) in contract and other deferred assets
|
62
|
|
(81
|
)
|
(1,243
|
)
|
|||
Decrease (increase) in GE current receivables
|
(2,851
|
)
|
(358
|
)
|
(3,902
|
)
|
|||
Decrease (increase) in inventories
|
(1,109
|
)
|
(356
|
)
|
324
|
|
|||
Increase (decrease) in accounts payable
|
2,977
|
|
1,545
|
|
169
|
|
|||
Increase (decrease) in GE progress collections
|
1,373
|
|
(571
|
)
|
1,912
|
|
|||
All other operating activities
|
1,388
|
|
1,317
|
|
13,308
|
|
|||
Cash from (used for) operating activities – continuing operations
|
10,419
|
|
3,210
|
|
5,840
|
|
|||
Cash from (used for) operating activities – discontinued operations
|
(1,647
|
)
|
1,768
|
|
714
|
|
|||
Cash from (used for) operating activities
|
8,772
|
|
4,978
|
|
6,554
|
|
|||
|
|
|
|
||||||
Additions to property, plant and equipment
|
(5,813
|
)
|
(6,627
|
)
|
(6,642
|
)
|
|||
Dispositions of property, plant and equipment
|
3,718
|
|
4,093
|
|
5,530
|
|
|||
Additions to internal-use software
|
(282
|
)
|
(320
|
)
|
(454
|
)
|
|||
Net decrease (increase) in GE Capital financing receivables
|
1,117
|
|
1,796
|
|
805
|
|
|||
Proceeds from sale of discontinued operations
|
5,864
|
|
29
|
|
1,464
|
|
|||
Proceeds from principal business dispositions
|
4,683
|
|
8,425
|
|
3,208
|
|
|||
Net cash from (payments for) principal businesses purchased
|
(68
|
)
|
(1
|
)
|
(2,722
|
)
|
|||
Capital contribution from GE to GE Capital
|
—
|
|
—
|
|
—
|
|
|||
All other investing activities
|
1,466
|
|
11,530
|
|
5,538
|
|
|||
Cash from (used for) investing activities – continuing operations
|
10,684
|
|
18,925
|
|
6,728
|
|
|||
Cash from (used for) investing activities – discontinued operations
|
(1,745
|
)
|
(645
|
)
|
(1,349
|
)
|
|||
Cash from (used for) investing activities
|
8,939
|
|
18,280
|
|
5,379
|
|
|||
|
|
|
|
||||||
Net increase (decrease) in borrowings (maturities of 90 days or less)
|
280
|
|
(4,343
|
)
|
1,699
|
|
|||
Newly issued debt (maturities longer than 90 days)
|
2,185
|
|
3,120
|
|
10,879
|
|
|||
Repayments and other reductions (maturities longer than 90 days)
|
(16,567
|
)
|
(20,319
|
)
|
(25,220
|
)
|
|||
Capital contribution from GE to GE Capital
|
—
|
|
—
|
|
—
|
|
|||
Net dispositions (purchases) of GE shares for treasury
|
29
|
|
(17
|
)
|
(2,550
|
)
|
|||
Dividends paid to shareholders
|
(649
|
)
|
(4,474
|
)
|
(8,650
|
)
|
|||
All other financing activities
|
(1,043
|
)
|
(1,312
|
)
|
(85
|
)
|
|||
Cash from (used for) financing activities – continuing operations
|
(15,764
|
)
|
(27,345
|
)
|
(23,927
|
)
|
|||
Cash from (used for) financing activities – discontinued operations
|
(368
|
)
|
(4,462
|
)
|
5,443
|
|
|||
Cash from (used for) financing activities
|
(16,133
|
)
|
(31,807
|
)
|
(18,484
|
)
|
|||
Effect of currency exchange rate changes on cash, cash equivalents
and restricted cash
|
(50
|
)
|
(628
|
)
|
891
|
|
|||
Increase (decrease) in cash, cash equivalents and restricted cash
|
1,529
|
|
(9,176
|
)
|
(5,659
|
)
|
|||
Cash, cash equivalents and restricted cash at beginning of year
|
35,548
|
|
44,724
|
|
50,384
|
|
|||
Cash, cash equivalents and restricted cash at end of year
|
37,077
|
|
35,548
|
|
44,724
|
|
|||
Less cash, cash equivalents and restricted cash of
discontinued operations at end of year
|
638
|
|
4,424
|
|
7,901
|
|
|||
Cash, cash equivalents and restricted cash of continuing operations
at end of year
|
$
|
36,439
|
|
$
|
31,124
|
|
$
|
36,823
|
|
Supplemental disclosure of cash flows information
|
|
|
|
||||||
Cash paid during the year for interest
|
$
|
(3,816
|
)
|
$
|
(4,409
|
)
|
$
|
(4,211
|
)
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF CASH FLOWS (CONTINUED)
|
GE(a)
|
|
GE Capital
|
||||||||||||||||
For the years ended December 31 (In millions)
|
2019
|
|
2018
|
|
2017
|
|
|
2019
|
|
2018
|
|
2017
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Net earnings (loss)
|
$
|
(5,373
|
)
|
$
|
(22,931
|
)
|
$
|
(9,288
|
)
|
|
$
|
123
|
|
$
|
(1,672
|
)
|
$
|
(6,643
|
)
|
(Earnings) loss from discontinued operations
|
5,335
|
|
1,363
|
|
319
|
|
|
(192
|
)
|
1,670
|
|
312
|
|
||||||
Adjustments to reconcile net earnings (loss) to cash provided from
operating activities:
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization of property, plant and equipment (Note 7)
|
2,001
|
|
2,290
|
|
2,050
|
|
|
2,026
|
|
2,110
|
|
2,277
|
|
||||||
Amortization of intangible assets
|
1,512
|
|
2,109
|
|
1,796
|
|
|
57
|
|
53
|
|
65
|
|
||||||
Goodwill impairments (Note 8)
|
1,486
|
|
22,136
|
|
1,165
|
|
|
—
|
|
—
|
|
1,386
|
|
||||||
(Earnings) loss from continuing operations retained by GE Capital
|
530
|
|
489
|
|
10,781
|
|
|
—
|
|
—
|
|
—
|
|
||||||
(Gains) losses on purchases and sales of business interests (Note 19)
|
(3
|
)
|
(1,234
|
)
|
(1,024
|
)
|
|
(50
|
)
|
(288
|
)
|
—
|
|
||||||
Principal pension plans cost (Note 13)
|
3,878
|
|
4,226
|
|
3,687
|
|
|
—
|
|
—
|
|
—
|
|
||||||
Principal pension plans employer contributions (Note 13)
|
(298
|
)
|
(6,283
|
)
|
(1,978
|
)
|
|
—
|
|
—
|
|
—
|
|
||||||
Other postretirement benefit plans (net) (Note 13)
|
(1,213
|
)
|
(1,015
|
)
|
(865
|
)
|
|
(15
|
)
|
(18
|
)
|
(23
|
)
|
||||||
Provision (benefit) for income taxes (Note 15)
|
1,309
|
|
467
|
|
3,493
|
|
|
(582
|
)
|
(374
|
)
|
(6,302
|
)
|
||||||
Cash recovered (paid) during the year for income taxes
|
(1,904
|
)
|
(1,343
|
)
|
(2,188
|
)
|
|
(46
|
)
|
(61
|
)
|
264
|
|
||||||
Decrease (increase) in contract and other deferred assets
|
62
|
|
(81
|
)
|
(1,243
|
)
|
|
—
|
|
—
|
|
—
|
|
||||||
Decrease (increase) in GE current receivables
|
(3,904
|
)
|
(966
|
)
|
1,040
|
|
|
—
|
|
—
|
|
—
|
|
||||||
Decrease (increase) in inventories
|
(877
|
)
|
(364
|
)
|
339
|
|
|
—
|
|
—
|
|
—
|
|
||||||
Increase (decrease) in accounts payable
|
684
|
|
1,595
|
|
(46
|
)
|
|
(44
|
)
|
2
|
|
(75
|
)
|
||||||
Increase (decrease) in GE progress collections
|
1,317
|
|
(433
|
)
|
1,938
|
|
|
—
|
|
—
|
|
—
|
|
||||||
All other operating activities (Note 24)
|
72
|
|
676
|
|
1,504
|
|
|
605
|
|
158
|
|
11,114
|
|
||||||
Cash from (used for) operating activities – continuing operations
|
4,614
|
|
701
|
|
11,479
|
|
|
1,881
|
|
1,582
|
|
2,374
|
|
||||||
Cash from (used for) operating activities – discontinued operations
|
(49
|
)
|
2,051
|
|
(195
|
)
|
|
(1,917
|
)
|
(415
|
)
|
(968
|
)
|
||||||
Cash from (used for) operating activities
|
4,565
|
|
2,752
|
|
11,284
|
|
|
(35
|
)
|
1,166
|
|
1,407
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Additions to property, plant and equipment
|
(2,216
|
)
|
(2,234
|
)
|
(3,403
|
)
|
|
(3,830
|
)
|
(4,569
|
)
|
(3,680
|
)
|
||||||
Dispositions of property, plant and equipment
|
371
|
|
271
|
|
1,186
|
|
|
3,348
|
|
3,853
|
|
4,579
|
|
||||||
Additions to internal-use software
|
(274
|
)
|
(306
|
)
|
(423
|
)
|
|
(8
|
)
|
(14
|
)
|
(31
|
)
|
||||||
Net decrease (increase) in GE Capital financing receivables (Note 24)
|
—
|
|
—
|
|
—
|
|
|
3,389
|
|
9,986
|
|
2,897
|
|
||||||
Proceeds from sale of discontinued operations
|
5,864
|
|
—
|
|
—
|
|
|
—
|
|
29
|
|
1,464
|
|
||||||
Proceeds from principal business dispositions
|
1,083
|
|
6,047
|
|
3,086
|
|
|
3,938
|
|
2,011
|
|
—
|
|
||||||
Net cash from (payments for) principal businesses purchased
|
(447
|
)
|
(1
|
)
|
(2,722
|
)
|
|
—
|
|
—
|
|
—
|
|
||||||
Capital contribution from GE to GE Capital
|
(4,000
|
)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
||||||
All other investing activities (Note 24)
|
3,675
|
|
(640
|
)
|
(9,439
|
)
|
|
2,617
|
|
482
|
|
3,013
|
|
||||||
Cash from (used for) investing activities – continuing operations
|
4,056
|
|
3,138
|
|
(11,715
|
)
|
|
9,453
|
|
11,777
|
|
8,242
|
|
||||||
Cash from (used for) investing activities – discontinued operations
|
(3,449
|
)
|
(698
|
)
|
2,312
|
|
|
2,023
|
|
186
|
|
(1,784
|
)
|
||||||
Cash from (used for) investing activities
|
607
|
|
2,439
|
|
(9,403
|
)
|
|
11,476
|
|
11,964
|
|
6,458
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Net increase (decrease) in borrowings (maturities of 90 days or less)
|
(595
|
)
|
(987
|
)
|
1,808
|
|
|
(256
|
)
|
(4,308
|
)
|
69
|
|
||||||
Newly issued debt (maturities longer than 90 days)
|
31
|
|
6,570
|
|
16,267
|
|
|
2,154
|
|
3,045
|
|
1,909
|
|
||||||
Repayments and other reductions (maturities longer than 90 days)
|
(6,458
|
)
|
(1,023
|
)
|
(5,579
|
)
|
|
(11,632
|
)
|
(19,836
|
)
|
(21,007
|
)
|
||||||
Capital contribution from GE to GE Capital
|
—
|
|
—
|
|
—
|
|
|
4,000
|
|
—
|
|
—
|
|
||||||
Net dispositions (purchases) of GE shares for treasury (Note 24)
|
29
|
|
(17
|
)
|
(2,550
|
)
|
|
—
|
|
—
|
|
—
|
|
||||||
Dividends paid to shareholders
|
(352
|
)
|
(4,179
|
)
|
(8,355
|
)
|
|
(455
|
)
|
(371
|
)
|
(4,311
|
)
|
||||||
All other financing activities (Note 24)
|
(312
|
)
|
1,107
|
|
290
|
|
|
(819
|
)
|
(2,408
|
)
|
(280
|
)
|
||||||
Cash from (used for) financing activities – continuing operations
|
(7,658
|
)
|
1,470
|
|
1,881
|
|
|
(7,007
|
)
|
(23,878
|
)
|
(23,619
|
)
|
||||||
Cash from (used for) financing activities – discontinued operations
|
(368
|
)
|
(4,462
|
)
|
3,534
|
|
|
(1
|
)
|
—
|
|
1,909
|
|
||||||
Cash from (used for) financing activities
|
(8,026
|
)
|
(2,992
|
)
|
5,415
|
|
|
(7,008
|
)
|
(23,878
|
)
|
(21,710
|
)
|
||||||
Effect of currency exchange rate changes on cash, cash equivalents
and restricted cash
|
(56
|
)
|
(494
|
)
|
444
|
|
|
6
|
|
(134
|
)
|
447
|
|
||||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
(2,911
|
)
|
1,706
|
|
7,739
|
|
|
4,439
|
|
(10,882
|
)
|
(13,399
|
)
|
||||||
Cash, cash equivalents and restricted cash at beginning of year
|
20,528
|
|
18,822
|
|
11,083
|
|
|
15,020
|
|
25,902
|
|
39,301
|
|
||||||
Cash, cash equivalents and restricted cash at end of year
|
17,617
|
|
20,528
|
|
18,822
|
|
|
19,460
|
|
15,020
|
|
25,902
|
|
||||||
Less cash, cash equivalents and restricted cash of
discontinued operations at end of year
|
4
|
|
3,896
|
|
7,144
|
|
|
633
|
|
528
|
|
757
|
|
||||||
Cash, cash equivalents and restricted cash of continuing operations
at end of year
|
$
|
17,613
|
|
$
|
16,632
|
|
$
|
11,678
|
|
|
$
|
18,826
|
|
$
|
14,492
|
|
$
|
25,145
|
|
Supplemental disclosure of cash flows information
|
|
|
|
|
|
|
|
||||||||||||
Cash paid during the year for interest
|
$
|
(1,975
|
)
|
$
|
(2,201
|
)
|
$
|
(2,347
|
)
|
|
$
|
(2,632
|
)
|
$
|
(2,883
|
)
|
$
|
(2,793
|
)
|
FINANCIAL STATEMENTS
|
|
|
GENERAL ELECTRIC COMPANY AND CONSOLIDATED AFFILIATES
|
|
|
|
||||||
STATEMENT OF COMPREHENSIVE INCOME (LOSS)
For the years ended December 31 (In millions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Net earnings (loss)
|
$
|
(4,912
|
)
|
$
|
(22,443
|
)
|
$
|
(8,849
|
)
|
Less net earnings (loss) attributable to noncontrolling interests
|
66
|
|
(89
|
)
|
(365
|
)
|
|||
Net earnings (loss) attributable to the Company
|
$
|
(4,979
|
)
|
$
|
(22,355
|
)
|
$
|
(8,484
|
)
|
|
|
|
|
||||||
Investment securities
|
$
|
100
|
|
$
|
64
|
|
$
|
(776
|
)
|
Currency translation adjustments
|
1,275
|
|
(1,664
|
)
|
2,178
|
|
|||
Cash flow hedges
|
36
|
|
(51
|
)
|
51
|
|
|||
Benefit plans
|
1,229
|
|
1,416
|
|
2,782
|
|
|||
Other comprehensive income (loss)
|
2,641
|
|
(235
|
)
|
4,236
|
|
|||
Less other comprehensive income (loss) attributable to noncontrolling interests
|
(40
|
)
|
(225
|
)
|
51
|
|
|||
Other comprehensive income (loss) attributable to the Company
|
$
|
2,681
|
|
$
|
(10
|
)
|
$
|
4,184
|
|
|
|
|
|
||||||
Comprehensive income (loss)
|
$
|
(2,272
|
)
|
$
|
(22,678
|
)
|
$
|
(4,613
|
)
|
Less comprehensive income (loss) attributable to noncontrolling interests
|
26
|
|
(314
|
)
|
(314
|
)
|
|||
Comprehensive income (loss) attributable to the Company
|
$
|
(2,297
|
)
|
$
|
(22,364
|
)
|
$
|
(4,300
|
)
|
GENERAL ELECTRIC COMPANY AND CONSOLIDATED AFFILIATES
|
|||||||||||
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (In millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
|
|
|
|
|
|
||||||
Preferred stock issued
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
6
|
|
Common stock issued
|
$
|
702
|
|
|
$
|
702
|
|
|
$
|
702
|
|
|
|
|
|
|
|
||||||
Beginning balance
|
(14,414
|
)
|
|
(14,404
|
)
|
|
(18,588
|
)
|
|||
Investment securities
|
100
|
|
|
63
|
|
|
(777
|
)
|
|||
Currency translation adjustments
|
1,315
|
|
|
(1,472
|
)
|
|
2,145
|
|
|||
Cash flow hedges
|
35
|
|
|
(49
|
)
|
|
50
|
|
|||
Benefit plans
|
1,231
|
|
|
1,448
|
|
|
2,766
|
|
|||
Accumulated other comprehensive income (loss) ending balance
|
$
|
(11,732
|
)
|
|
$
|
(14,414
|
)
|
|
$
|
(14,404
|
)
|
Beginning balance
|
35,504
|
|
|
37,384
|
|
|
37,224
|
|
|||
Gains (losses) on treasury stock dispositions
|
(925
|
)
|
|
(759
|
)
|
|
(304
|
)
|
|||
Stock-based compensation
|
475
|
|
|
413
|
|
|
358
|
|
|||
Other changes
|
(649
|
)
|
|
(1,534
|
)
|
|
106
|
|
|||
Other capital ending balance
|
$
|
34,405
|
|
|
$
|
35,504
|
|
|
$
|
37,384
|
|
Beginning balance
|
93,109
|
|
|
117,245
|
|
|
133,857
|
|
|||
Net earnings (loss) attributable to the Company
|
(4,979
|
)
|
|
(22,355
|
)
|
|
(8,484
|
)
|
|||
Dividends and other transactions with shareholders
|
(766
|
)
|
|
(4,042
|
)
|
|
(8,130
|
)
|
|||
Changes in accounting (Note 1)
|
368
|
|
|
2,261
|
|
|
2
|
|
|||
Retained earnings ending balance
|
$
|
87,732
|
|
|
$
|
93,109
|
|
|
$
|
117,245
|
|
Beginning balance
|
(83,925
|
)
|
|
(84,902
|
)
|
|
(83,038
|
)
|
|||
Purchases
|
(57
|
)
|
|
(268
|
)
|
|
(3,849
|
)
|
|||
Dispositions
|
1,186
|
|
|
1,244
|
|
|
1,985
|
|
|||
Common stock held in treasury ending balance
|
$
|
(82,797
|
)
|
|
$
|
(83,925
|
)
|
|
$
|
(84,902
|
)
|
GE shareholders' equity balance
|
28,316
|
|
|
30,981
|
|
|
56,031
|
|
|||
Noncontrolling interests balance (Note 16)
|
1,545
|
|
|
20,500
|
|
|
17,468
|
|
|||
Total equity balance at December 31(a)
|
$
|
29,861
|
|
|
$
|
51,481
|
|
|
$
|
73,499
|
|
(a)
|
Total equity balance decreased by $(43,638) million from December 31, 2017, primarily due to non-cash after-tax goodwill impairment charge of $(22,371) million in 2018, reduction of noncontrolling interest balance of $(15,836) million attributable to Baker Hughes Class A shareholders at December 31, 2017 and after-tax loss of $(8,238) million in discontinued operations due to deconsolidation of Baker Hughes in 2019, partially offset by after-tax gain of $2,508 million in discontinued operations due to spin-off and subsequent merger of our Transportation business with Wabtec in 2019.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
2019
|
|
2018
|
|
|||
|
|
|
||||
Current receivables
|
$
|
499
|
|
$
|
184
|
|
Inventories
|
712
|
|
529
|
|
||
Financing receivables held for sale
|
197
|
|
—
|
|
||
Property, plant, and equipment – net and Operating leases
|
958
|
|
423
|
|
||
Goodwill and Other intangible assets - net
|
6,286
|
|
884
|
|
||
Valuation allowance
|
(719
|
)
|
(1,013
|
)
|
||
Deferred income taxes
|
815
|
|
—
|
|
||
All other assets
|
400
|
|
622
|
|
||
Assets of businesses held for sale
|
$
|
9,149
|
|
$
|
1,629
|
|
|
|
|
||||
Accounts payable & Progress collections and deferred income
|
$
|
843
|
|
$
|
428
|
|
Non-current compensation and benefits
|
466
|
|
152
|
|
||
All other liabilities
|
349
|
|
128
|
|
||
Liabilities of businesses held for sale
|
$
|
1,658
|
|
$
|
708
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
RESULTS OF DISCONTINUED OPERATIONS
For the year ended December 31, 2019 (In millions)
|
Baker Hughes
|
|
|
Transportation and Other
|
|
|
GE Capital
|
|
|
Total
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Sales of goods and services
|
$
|
16,047
|
|
|
$
|
550
|
|
|
$
|
—
|
|
|
$
|
16,598
|
|
GE Capital revenues and other income (loss)
|
—
|
|
|
—
|
|
|
33
|
|
|
33
|
|
||||
Cost of goods and services sold
|
(13,317
|
)
|
|
(478
|
)
|
|
—
|
|
|
(13,795
|
)
|
||||
Other costs and expenses
|
(2,390
|
)
|
|
(19
|
)
|
|
(240
|
)
|
|
(2,650
|
)
|
||||
|
|
|
—
|
|
|
|
|
|
|||||||
Earnings (loss) of discontinued operations before income taxes
|
340
|
|
|
53
|
|
|
(207
|
)
|
|
186
|
|
||||
Benefit (provision) for income taxes(b)
|
(176
|
)
|
|
(15
|
)
|
|
344
|
|
|
153
|
|
||||
Earnings (loss) of discontinued operations, net of taxes(a)
|
165
|
|
|
39
|
|
|
136
|
|
|
339
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Gain (loss) on disposal before income taxes
|
(8,715
|
)
|
|
3,471
|
|
|
61
|
|
|
(5,183
|
)
|
||||
Benefit (provision) for income taxes(b)
|
477
|
|
|
(963
|
)
|
|
(5
|
)
|
|
(491
|
)
|
||||
Gain (loss) on disposal, net of taxes
|
(8,238
|
)
|
|
2,508
|
|
|
56
|
|
|
(5,675
|
)
|
||||
|
|
|
|
|
|
|
—
|
|
|||||||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(8,074
|
)
|
|
$
|
2,547
|
|
|
$
|
192
|
|
|
$
|
(5,335
|
)
|
For the year ended December 31, 2018 (In millions)
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Sales of goods and services
|
$
|
22,859
|
|
|
$
|
3,898
|
|
|
$
|
—
|
|
|
$
|
26,757
|
|
GE Capital revenues and other income (loss)
|
—
|
|
|
—
|
|
|
(1,347
|
)
|
|
(1,347
|
)
|
||||
Cost of goods and services sold
|
(19,198
|
)
|
|
(2,809
|
)
|
|
—
|
|
|
(22,007
|
)
|
||||
Other costs and expenses
|
(3,346
|
)
|
|
(607
|
)
|
|
(407
|
)
|
|
(4,360
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) of discontinued operations before income taxes
|
315
|
|
|
482
|
|
|
(1,755
|
)
|
|
(958
|
)
|
||||
Benefit (provision) for income taxes(b)
|
(347
|
)
|
|
(143
|
)
|
|
82
|
|
|
(408
|
)
|
||||
Earnings (loss) of discontinued operations, net of taxes(a)
|
(33
|
)
|
|
339
|
|
|
(1,673
|
)
|
|
(1,366
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Gain (loss) on disposal before income taxes
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
||||
Benefit (provision) for income taxes(b)
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||
Gain (loss) on disposal, net of taxes
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(33
|
)
|
|
$
|
339
|
|
|
$
|
(1,670
|
)
|
|
$
|
(1,363
|
)
|
For the year ended December 31, 2017 (In millions)
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Sales of goods and services
|
$
|
17,180
|
|
|
$
|
3,935
|
|
|
$
|
—
|
|
|
$
|
21,115
|
|
GE Capital revenues and other income (loss)
|
—
|
|
|
—
|
|
|
174
|
|
|
174
|
|
||||
Cost of goods and services sold
|
(14,450
|
)
|
|
(2,990
|
)
|
|
—
|
|
|
(17,441
|
)
|
||||
Other costs and expenses
|
(2,993
|
)
|
|
(483
|
)
|
|
(910
|
)
|
|
(4,386
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) of discontinued operations before income taxes
|
(264
|
)
|
|
461
|
|
|
(735
|
)
|
|
(538
|
)
|
||||
Benefit (provision) for income taxes(b)
|
(59
|
)
|
|
(138
|
)
|
|
295
|
|
|
97
|
|
||||
Earnings (loss) of discontinued operations, net of taxes(a)
|
(323
|
)
|
|
323
|
|
|
(440
|
)
|
|
(441
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Gain (loss) on disposal before income taxes
|
—
|
|
|
—
|
|
|
306
|
|
|
306
|
|
||||
Benefit (provision) for income taxes(b)
|
—
|
|
|
—
|
|
|
(178
|
)
|
|
(178
|
)
|
||||
Gain (loss) on disposal, net of taxes
|
—
|
|
|
—
|
|
|
128
|
|
|
128
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(323
|
)
|
|
$
|
323
|
|
|
$
|
(312
|
)
|
|
$
|
(312
|
)
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
December 31 (In millions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Cash, cash equivalents and restricted cash
|
$
|
638
|
|
$
|
4,424
|
|
Investment securities
|
202
|
|
522
|
|
||
Current receivables
|
81
|
|
6,258
|
|
||
Inventories
|
—
|
|
5,419
|
|
||
Financing receivables held for sale (Polish mortgage portfolio)
|
2,485
|
|
2,745
|
|
||
Property, plant and equipment - net
|
—
|
|
7,139
|
|
||
Goodwill and intangible assets - net
|
—
|
|
31,622
|
|
||
Deferred income taxes
|
264
|
|
1,174
|
|
||
All other assets
|
439
|
|
4,550
|
|
||
Assets of discontinued operations(a)
|
$
|
4,109
|
|
$
|
63,853
|
|
|
|
|
||||
Accounts payable & Progress collections and deferred income
|
$
|
40
|
|
$
|
6,806
|
|
All other liabilities
|
163
|
|
12,476
|
|
||
Liabilities of discontinued operations(b)
|
$
|
203
|
|
$
|
19,281
|
|
|
2019
|
|
2018
|
||||||||||||||||||||||
December 31 (In millions)
|
Amortized
cost |
|
Gross
unrealized gains |
|
Gross
unrealized losses |
|
Estimated
fair value |
|
|
Amortized
cost |
|
Gross
unrealized gains |
|
Gross
unrealized losses |
|
Estimated
fair value |
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Debt
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. corporate
|
$
|
23,037
|
|
$
|
4,636
|
|
$
|
(11
|
)
|
$
|
27,661
|
|
|
$
|
21,306
|
|
$
|
2,257
|
|
$
|
(357
|
)
|
$
|
23,206
|
|
Non-U.S. corporate
|
2,161
|
|
260
|
|
(1
|
)
|
2,420
|
|
|
1,906
|
|
53
|
|
(76
|
)
|
1,883
|
|
||||||||
State and municipal
|
3,086
|
|
598
|
|
(15
|
)
|
3,669
|
|
|
3,320
|
|
367
|
|
(54
|
)
|
3,633
|
|
||||||||
Mortgage and asset-backed
|
3,117
|
|
116
|
|
(4
|
)
|
3,229
|
|
|
3,325
|
|
51
|
|
(54
|
)
|
3,322
|
|
||||||||
Government and agencies
|
1,391
|
|
126
|
|
—
|
|
1,516
|
|
|
1,314
|
|
62
|
|
(20
|
)
|
1,357
|
|
||||||||
Equity
|
10,025
|
|
—
|
|
—
|
|
10,025
|
|
|
107
|
|
—
|
|
—
|
|
107
|
|
||||||||
Total
|
$
|
42,816
|
|
$
|
5,736
|
|
$
|
(31
|
)
|
$
|
48,521
|
|
|
$
|
31,277
|
|
$
|
2,792
|
|
$
|
(561
|
)
|
$
|
33,508
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
(In millions)
|
Amortized
cost
|
|
Estimated
fair value
|
|
||
|
|
|
||||
Due
|
|
|
||||
Within one year
|
$
|
514
|
|
$
|
527
|
|
After one year through five years
|
2,615
|
|
2,766
|
|
||
After five years through ten years
|
6,614
|
|
7,599
|
|
||
After ten years
|
19,932
|
|
24,374
|
|
|
Consolidated
|
|
GE
|
||||||||||
December 31 (In millions)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||
|
|
|
|
|
|
|
|||||||
Power
|
$
|
4,689
|
|
$
|
4,652
|
|
|
$
|
3,289
|
|
$
|
2,270
|
|
Renewable Energy
|
2,306
|
|
1,938
|
|
|
1,749
|
|
1,475
|
|
||||
Aviation(a)
|
3,249
|
|
1,483
|
|
|
2,867
|
|
1,145
|
|
||||
Healthcare
|
2,105
|
|
2,431
|
|
|
1,379
|
|
1,260
|
|
||||
Corporate
|
246
|
|
238
|
|
|
223
|
|
205
|
|
||||
Customer receivables
|
12,594
|
|
10,742
|
|
|
9,507
|
|
6,355
|
|
||||
Sundry receivables
|
5,049
|
|
4,573
|
|
|
5,247
|
|
4,569
|
|
||||
Allowance for losses
|
(874
|
)
|
(670
|
)
|
|
(872
|
)
|
(662
|
)
|
||||
Total current receivables
|
$
|
16,769
|
|
$
|
14,645
|
|
|
$
|
13,883
|
|
$
|
10,262
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
(In millions)
|
GE Capital
|
|
Third Parties
|
|
GE Capital
|
|
Third Parties
|
||||||||
|
2019
|
|
2018
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Balance at January 1
|
$
|
4,386
|
|
|
$
|
7,880
|
|
|
$
|
9,656
|
|
|
$
|
5,710
|
|
GE sales to GE Capital
|
40,988
|
|
|
—
|
|
|
50,318
|
|
|
—
|
|
||||
GE sales to third parties
|
—
|
|
|
6,370
|
|
|
—
|
|
|
5,481
|
|
||||
GE Capital sales to third parties
|
(28,073
|
)
|
|
28,073
|
|
|
(30,904
|
)
|
|
30,904
|
|
||||
Collections and other
|
(14,621
|
)
|
|
(35,567
|
)
|
|
(25,414
|
)
|
|
(34,216
|
)
|
||||
Reclassification from long-term customer receivables
|
407
|
|
|
—
|
|
|
731
|
|
|
—
|
|
||||
Balance at December 31
|
$
|
3,087
|
|
(a)
|
$
|
6,757
|
|
|
$
|
4,386
|
|
(a)
|
$
|
7,880
|
|
|
Consolidated
|
|
GE
|
||||||||||
December 31 (In millions)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||
|
|
|
|
|
|
||||||||
Long-term customer receivables
|
$
|
906
|
|
$
|
1,442
|
|
|
$
|
506
|
|
$
|
559
|
|
Long-term sundry receivables
|
1,504
|
|
1,180
|
|
|
1,834
|
|
1,519
|
|
||||
Allowance for losses
|
(128
|
)
|
(145
|
)
|
|
(128
|
)
|
(145
|
)
|
||||
Total long-term receivables
|
$
|
2,282
|
|
$
|
2,477
|
|
|
$
|
2,212
|
|
$
|
1,933
|
|
GE Capital December 31 (In millions)
|
2019
|
|
|
2018
|
|
||
|
|
|
|
||||
Balance at January 1
|
$
|
883
|
|
|
$
|
1,947
|
|
GE sales to GE Capital
|
—
|
|
|
134
|
|
||
Sales, collections, accretion and other
|
(75
|
)
|
|
(468
|
)
|
||
Reclassification to current customer receivables
|
(407
|
)
|
|
(731
|
)
|
||
Balance at December 31(a)
|
$
|
400
|
|
|
$
|
883
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
For the years ended December 31 (In millions)
|
2019
|
|
|
2018
|
|
||
|
|
|
|
||||
Customer receivables sold to receivables facilities
|
$
|
21,695
|
|
|
$
|
23,984
|
|
Total cash purchase price for customer receivables
|
21,202
|
|
|
18,040
|
|
||
Cash collections re-invested to purchase customer receivables
|
18,012
|
|
|
15,095
|
|
||
|
|
|
|
|
|||
Non-cash increases to deferred purchase price
|
$
|
257
|
|
|
$
|
5,272
|
|
Cash payments received on deferred purchase price
|
303
|
|
|
5,192
|
|
|
Consolidated
|
|
GE Capital
|
||||||||||
December 31 (In millions)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||
|
|
|
|
|
|
||||||||
Loans, net of deferred income
|
$
|
1,098
|
|
$
|
5,118
|
|
|
$
|
4,927
|
|
$
|
10,834
|
|
Investment in financing leases, net of deferred income
|
2,070
|
|
2,639
|
|
|
2,070
|
|
2,822
|
|
||||
|
3,168
|
|
7,757
|
|
|
6,996
|
|
13,656
|
|
||||
Allowance for losses
|
(33
|
)
|
(58
|
)
|
|
(17
|
)
|
(28
|
)
|
||||
Financing receivables – net
|
$
|
3,134
|
|
$
|
7,699
|
|
|
$
|
6,979
|
|
$
|
13,628
|
|
NET INVESTMENT IN FINANCING LEASES
|
Total financing leases
|
|
Direct financing and sales type leases(a)
|
|
Leveraged leases
|
|||||||||||||||
December 31 (In millions)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Total minimum lease payments receivable
|
$
|
1,628
|
|
$
|
2,719
|
|
|
$
|
799
|
|
$
|
1,421
|
|
|
$
|
829
|
|
$
|
1,298
|
|
Less principal and interest on third-party non-recourse debt
|
(216
|
)
|
(474
|
)
|
|
—
|
|
—
|
|
|
(216
|
)
|
(474
|
)
|
||||||
Net minimum lease payments receivable
|
1,412
|
|
2,245
|
|
|
799
|
|
1,421
|
|
|
613
|
|
824
|
|
||||||
Less deferred income
|
(178
|
)
|
(329
|
)
|
|
(139
|
)
|
(286
|
)
|
|
(39
|
)
|
(43
|
)
|
||||||
Discounted lease receivable
|
1,234
|
|
1,916
|
|
|
660
|
|
1,135
|
|
|
574
|
|
781
|
|
||||||
Estimated unguaranteed residual value of leased assets, net of deferred income
|
835
|
|
906
|
|
|
412
|
|
420
|
|
|
423
|
|
486
|
|
||||||
Investment in financing leases, net of deferred income(b)
|
$
|
2,070
|
|
$
|
2,822
|
|
|
$
|
1,072
|
|
$
|
1,556
|
|
|
$
|
997
|
|
$
|
1,266
|
|
CONTRACTUAL MATURITIES, DUE IN
(In millions)
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
|
Total
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
Total loans
|
$
|
3,832
|
|
$
|
511
|
|
$
|
238
|
|
$
|
113
|
|
$
|
93
|
|
$
|
140
|
|
$
|
4,927
|
|
Net minimum lease payments receivable
|
303
|
|
270
|
|
194
|
|
281
|
|
198
|
|
166
|
|
1,412
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
December 31 (In millions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Raw materials and work in process
|
$
|
8,771
|
|
$
|
8,057
|
|
Finished goods
|
5,333
|
|
5,746
|
|
||
Total inventories
|
$
|
14,104
|
|
$
|
13,803
|
|
|
Depreciable lives-new
|
Original Cost
|
|
Net Carrying Value
|
||||||||||
December 31 (Dollars in millions)
|
(in years)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||
|
|
|
|
|
|
|
||||||||
Land and improvements
|
8
|
$
|
608
|
|
$
|
700
|
|
|
$
|
596
|
|
$
|
673
|
|
Buildings, structures and related equipment
|
8-40
|
7,824
|
|
8,455
|
|
|
3,875
|
|
4,083
|
|
||||
Machinery and equipment
|
4-20
|
20,082
|
|
19,425
|
|
|
8,360
|
|
8,048
|
|
||||
Leasehold costs and manufacturing plant under construction
|
1-10
|
2,165
|
|
2,646
|
|
|
1,539
|
|
2,024
|
|
||||
GE
|
|
$
|
30,680
|
|
$
|
31,225
|
|
|
$
|
14,370
|
|
$
|
14,828
|
|
|
|
|
|
|
|
|
||||||||
Land and improvements, buildings, structures and related equipment
|
1-40
|
149
|
|
$
|
153
|
|
|
29
|
|
$
|
32
|
|
||
Equipment leased to others (ELTO)
|
|
|
|
|
|
|
||||||||
Aircraft
|
15-20
|
35,507
|
|
36,476
|
|
|
21,414
|
|
22,201
|
|
||||
Engines
|
15-20
|
4,113
|
|
3,234
|
|
|
3,283
|
|
2,489
|
|
||||
Helicopters
|
15-20
|
5,474
|
|
5,230
|
|
|
4,709
|
|
4,660
|
|
||||
All other
|
15-35
|
237
|
|
209
|
|
|
214
|
|
128
|
|
||||
GE Capital(a)
|
|
$
|
45,480
|
|
$
|
45,302
|
|
|
$
|
29,649
|
|
$
|
29,510
|
|
|
|
|
|
|
|
|
||||||||
Eliminations
|
|
(972
|
)
|
(909
|
)
|
|
(729
|
)
|
(728
|
)
|
||||
Total
|
|
$
|
75,187
|
|
$
|
75,618
|
|
|
$
|
43,290
|
|
$
|
43,611
|
|
(In millions)
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
|
Total
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
$
|
2,982
|
|
$
|
2,625
|
|
$
|
2,258
|
|
$
|
1,820
|
|
$
|
1,647
|
|
$
|
5,652
|
|
$
|
16,985
|
|
OPERATING LEASE EXPENSE (In millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
|
|
|
|
|
|
||||||
Long-term (fixed)
|
$
|
834
|
|
|
$
|
966
|
|
|
$
|
1,003
|
|
Long-term (variable)
|
136
|
|
|
177
|
|
|
231
|
|
|||
Short-term
|
206
|
|
|
133
|
|
|
131
|
|
|||
Total operating lease expense
|
$
|
1,176
|
|
|
$
|
1,276
|
|
|
$
|
1,365
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
MATURITY OF LEASE LIABILITIES (In millions)
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
|
Total
|
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
Undiscounted lease payments
|
$
|
766
|
|
$
|
655
|
|
$
|
561
|
|
$
|
465
|
|
$
|
375
|
|
$
|
914
|
|
$
|
3,737
|
|
Less: imputed interest
|
|
|
|
|
|
|
(575
|
)
|
|||||||||||||
Total lease liability as of December 31, 2019
|
|
|
|
|
|
|
$
|
3,162
|
|
SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES (Dollars in millions)
|
|
||
|
|
||
Operating cash flows used for operating leases for the year ended December 31, 2019
|
$
|
888
|
|
Right-of-use assets obtained in exchange for new lease liabilities for the year ended December 31, 2019
|
$
|
746
|
|
Weighted-average remaining lease term at December 31, 2019
|
6.9 years
|
|
|
Weighted-average discount rate at December 31, 2019
|
4.9
|
%
|
CHANGES IN GOODWILL BALANCES
|
|||||||||||||||||||||||||||
|
|
2018
|
2019
|
||||||||||||||||||||||||
(In millions)
|
Balance at
December 31, 2017 |
|
Dispositions and
classifications to held for sale |
|
Impairments
|
|
Currency exchange and other
|
|
Balance at
December 31, 2018 |
|
Dispositions and classifications to held for sale
|
|
Impairments
|
|
Currency exchange and other
|
|
Balance at
December 31, 2019 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Power
|
$
|
20,855
|
|
$
|
(1,903
|
)
|
$
|
(18,443
|
)
|
$
|
(369
|
)
|
$
|
139
|
|
$
|
—
|
|
$
|
—
|
|
$
|
6
|
|
$
|
145
|
|
Renewable Energy
|
7,626
|
|
(3
|
)
|
(2,859
|
)
|
(35
|
)
|
4,730
|
|
—
|
|
(1,486
|
)
|
46
|
|
3,290
|
|
|||||||||
Aviation
|
10,008
|
|
(12
|
)
|
—
|
|
(158
|
)
|
9,839
|
|
—
|
|
—
|
|
20
|
|
9,859
|
|
|||||||||
Healthcare
|
17,306
|
|
(21
|
)
|
—
|
|
(58
|
)
|
17,226
|
|
(5,558
|
)
|
—
|
|
59
|
|
11,728
|
|
|||||||||
Capital(a)
|
984
|
|
—
|
|
—
|
|
(80
|
)
|
904
|
|
(39
|
)
|
—
|
|
(26
|
)
|
839
|
|
|||||||||
Corporate(b)
|
2,042
|
|
(81
|
)
|
(833
|
)
|
9
|
|
1,136
|
|
—
|
|
—
|
|
(262
|
)
|
873
|
|
|||||||||
Total
|
$
|
58,821
|
|
$
|
(2,020
|
)
|
$
|
(22,136
|
)
|
$
|
(691
|
)
|
$
|
33,974
|
|
$
|
(5,597
|
)
|
$
|
(1,486
|
)
|
$
|
(157
|
)
|
$
|
26,734
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
2019
|
|
2018
|
||||||||||||||||
INTANGIBLE ASSETS SUBJECT TO AMORTIZATION December 31 (In millions)
|
Gross carrying
amount |
|
Accumulated
amortization |
|
Net
|
|
|
Gross carrying
amount |
|
Accumulated
amortization |
|
Net
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Customer-related(a)
|
$
|
6,770
|
|
$
|
(3,070
|
)
|
$
|
3,701
|
|
|
$
|
7,107
|
|
$
|
(2,768
|
)
|
$
|
4,341
|
|
Patents and technology
|
8,180
|
|
(3,730
|
)
|
4,450
|
|
|
9,166
|
|
(3,973
|
)
|
5,192
|
|
||||||
Capitalized software
|
5,822
|
|
(3,651
|
)
|
2,171
|
|
|
5,951
|
|
(3,643
|
)
|
2,308
|
|
||||||
Trademarks & other
|
737
|
|
(406
|
)
|
332
|
|
|
818
|
|
(481
|
)
|
337
|
|
||||||
Total
|
$
|
21,510
|
|
$
|
(10,857
|
)
|
$
|
10,653
|
|
|
$
|
23,041
|
|
$
|
(10,865
|
)
|
$
|
12,178
|
|
ESTIMATED 5 YEAR CONSOLIDATED AMORTIZATION (In millions)
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
|||||
|
|
|
|
|
|
||||||||||
Estimated annual pre-tax amortization
|
$
|
1,358
|
|
$
|
1,274
|
|
$
|
1,173
|
|
$
|
1,081
|
|
$
|
1,107
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
December 31, 2019 (In millions)
|
Power
|
Aviation
|
Renewable Energy
|
Healthcare
|
Other
|
Total
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||
Revenues in excess of billings
|
$
|
5,342
|
|
$
|
4,996
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
10,338
|
|
Billings in excess of revenues
|
(1,561
|
)
|
(3,719
|
)
|
—
|
|
—
|
|
—
|
|
(5,280
|
)
|
||||||
Long-term service agreements(a)
|
$
|
3,781
|
|
$
|
1,278
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
5,058
|
|
Short-term and other service agreements
|
190
|
|
316
|
|
43
|
|
169
|
|
—
|
|
717
|
|
||||||
Equipment contract revenues(b)
|
2,508
|
|
82
|
|
1,217
|
|
324
|
|
106
|
|
4,236
|
|
||||||
Total contract assets
|
6,478
|
|
1,675
|
|
1,260
|
|
492
|
|
106
|
|
10,011
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deferred inventory costs(c)
|
943
|
|
287
|
|
1,677
|
|
359
|
|
—
|
|
3,267
|
|
||||||
Nonrecurring engineering costs(d)
|
44
|
|
2,257
|
|
47
|
|
35
|
|
8
|
|
2,391
|
|
||||||
Customer advances and other(e)
|
—
|
|
1,165
|
|
—
|
|
—
|
|
(32
|
)
|
1,133
|
|
||||||
Contract and other deferred assets
|
$
|
7,465
|
|
$
|
5,384
|
|
$
|
2,985
|
|
$
|
886
|
|
$
|
82
|
|
$
|
16,801
|
|
December 31, 2018 (In millions)
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||
Revenues in excess of billings
|
$
|
5,368
|
|
$
|
5,412
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
10,780
|
|
Billings in excess of revenues
|
(1,693
|
)
|
(3,297
|
)
|
—
|
|
—
|
|
—
|
|
(4,989
|
)
|
||||||
Long-term service agreements(a)
|
$
|
3,675
|
|
$
|
2,115
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
5,790
|
|
Short-term and other service agreements
|
167
|
|
272
|
|
—
|
|
251
|
|
—
|
|
690
|
|
||||||
Equipment contract revenues(b)
|
2,761
|
|
80
|
|
1,174
|
|
320
|
|
64
|
|
4,400
|
|
||||||
Total contract assets
|
6,603
|
|
2,468
|
|
1,174
|
|
571
|
|
64
|
|
10,880
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deferred inventory costs(c)
|
1,003
|
|
673
|
|
1,267
|
|
360
|
|
5
|
|
3,309
|
|
||||||
Nonrecurring engineering costs(d)
|
43
|
|
1,916
|
|
85
|
|
34
|
|
17
|
|
2,095
|
|
||||||
Customer advances and other(e)
|
—
|
|
1,146
|
|
—
|
|
—
|
|
—
|
|
1,146
|
|
||||||
Contract and other deferred assets
|
$
|
7,650
|
|
$
|
6,204
|
|
$
|
2,525
|
|
$
|
966
|
|
$
|
87
|
|
$
|
17,431
|
|
(a)
|
Included amounts due from customers at Aviation for the sales of engines, spare parts and services, which we will collect through higher usage-based fees from servicing equipment under long-term service agreements, totaling $1,712 million and $1,562 million as of December 31, 2019 and 2018, respectively. The corresponding discount is recorded within liabilities as Deferred income and amounted to $308 million and $310 million as of December 31, 2019 and 2018, respectively.
|
(b)
|
Included are amounts due from customers at Power for the sale of services upgrades, which we collect through incremental fixed or usage-based fees from servicing the equipment under long-term service agreements, totaling $909 million and $886 million as of December 31, 2019 and 2018, respectively.
|
(c)
|
Represents cost deferral for shipped goods (such as components for wind turbine assemblies within our Renewable Energy segment) and labor and overhead costs on time and material service contracts (primarily originating in Power and Aviation) and other costs for which the criteria for revenue recognition has not yet been met.
|
(d)
|
Included costs incurred prior to production (such as requisition engineering) for equipment production contracts, primarily within our Aviation segment, which are allocated ratably to each unit produced.
|
(e)
|
Included advances to and amounts due from customers at Aviation for the sale of engines, spare parts and services, which we will collect through incremental fees for goods and services to be delivered in future periods, totaling $986 million and $950 million as of December 31, 2019 and 2018, respectively. The corresponding discount is recorded within liabilities as Deferred income and amounted to $256 million and $223 million as of December 31, 2019 and 2018, respectively.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
December 31, 2019 (In millions)
|
Power
|
Aviation
|
Renewable Energy
|
Healthcare
|
Other
|
Total
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||
Progress collections on equipment contracts
|
$
|
5,857
|
|
$
|
115
|
|
$
|
1,268
|
|
$
|
—
|
|
$
|
—
|
|
$
|
7,240
|
|
Other progress collections
|
413
|
|
4,748
|
|
4,193
|
|
305
|
|
189
|
|
9,849
|
|
||||||
Total progress collections
|
$
|
6,270
|
|
$
|
4,863
|
|
$
|
5,461
|
|
$
|
305
|
|
$
|
189
|
|
$
|
17,089
|
|
Deferred income(a)
|
49
|
|
1,528
|
|
284
|
|
1,647
|
|
98
|
|
3,606
|
|
||||||
GE Progress collections and deferred income
|
$
|
6,319
|
|
$
|
6,391
|
|
$
|
5,745
|
|
$
|
1,952
|
|
$
|
287
|
|
$
|
20,694
|
|
December 31, 2018 (In millions)
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||
Progress collections on equipment contracts
|
$
|
5,536
|
|
$
|
114
|
|
$
|
1,325
|
|
$
|
—
|
|
$
|
—
|
|
$
|
6,975
|
|
Other progress collections
|
691
|
|
4,034
|
|
3,557
|
|
299
|
|
201
|
|
8,783
|
|
||||||
Total progress collections
|
$
|
6,227
|
|
$
|
4,148
|
|
$
|
4,883
|
|
$
|
299
|
|
$
|
201
|
|
$
|
15,758
|
|
Deferred income(a)
|
112
|
|
1,338
|
|
260
|
|
1,692
|
|
79
|
|
3,480
|
|
||||||
GE Progress collections and deferred income
|
$
|
6,339
|
|
$
|
5,486
|
|
$
|
5,143
|
|
$
|
1,991
|
|
$
|
280
|
|
$
|
19,239
|
|
(a)
|
Included in this balance are finance discounts associated with customer advances at Aviation of $564 million and $533 million as of December 31, 2019 and 2018, respectively.
|
December 31 (In millions)
|
2019
|
|
2018
|
|
||
|
|
|
|
|
||
Equity method and other investments (Notes 3 and 26)
|
$
|
4,015
|
|
$
|
4,003
|
|
Long-term receivables (Note 4)
|
2,212
|
|
1,933
|
|
||
Prepaid taxes and deferred charges
|
1,480
|
|
1,763
|
|
||
Derivative instruments (Note 21)
|
211
|
|
30
|
|
||
Other
|
481
|
|
849
|
|
||
Total GE
|
$
|
8,399
|
|
$
|
8,578
|
|
|
|
|
||||
Equity method and other investments (Notes 3 and 26)
|
$
|
2,227
|
|
$
|
3,097
|
|
GECAS pre-delivery payments (Note 23)
|
2,934
|
|
3,086
|
|
||
Assets held for sale
|
2,294
|
|
2,762
|
|
||
Derivative instruments (Note 21)
|
529
|
|
175
|
|
||
Other
|
664
|
|
748
|
|
||
Total GE Capital
|
$
|
8,648
|
|
$
|
9,869
|
|
Eliminations
|
(586
|
)
|
(90
|
)
|
||
Total Consolidated
|
$
|
16,461
|
|
$
|
18,357
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
December 31 (Dollars in millions)
|
|
2019
|
|
|
2018
|
|
|
||||
|
|
|
|
|
|
||||||
|
|
Amount
|
|
Average Rate
|
|
Amount
|
|
Average Rate
|
|
||
Commercial paper
|
|
$
|
3,008
|
|
1.62
|
%
|
$
|
3,005
|
|
1.64
|
%
|
Current portion of long-term borrowings
|
|
766
|
|
0.36
|
|
60
|
|
4.02
|
|
||
Current portion of long-term borrowings assumed by GE
|
|
5,473
|
|
3.71
|
|
4,207
|
|
3.76
|
|
||
Other
|
|
1,832
|
|
|
2,081
|
|
|
||||
Total GE short-term borrowings
|
|
$
|
11,079
|
|
|
$
|
9,354
|
|
|
||
|
|
|
|
|
|
||||||
Current portion of long-term borrowings
|
|
11,226
|
|
3.01
|
%
|
3,984
|
|
2.00
|
%
|
||
Intercompany payable to GE
|
|
2,104
|
|
|
2,684
|
|
|
||||
Other
|
|
804
|
|
|
1,015
|
|
|
||||
Total GE Capital short-term borrowings
|
|
$
|
14,134
|
|
|
$
|
7,684
|
|
|
||
|
|
|
|
|
|
||||||
Eliminations
|
|
(3,140
|
)
|
|
(4,262
|
)
|
|
||||
Total short-term borrowings
|
|
$
|
22,072
|
|
|
$
|
12,776
|
|
|
||
|
|
|
|
|
|
||||||
|
Maturities
|
Amount
|
|
Average Rate
|
|
Amount
|
|
Average Rate
|
|
||
Senior notes
|
2022-2044
|
$
|
14,762
|
|
2.11
|
%
|
$
|
20,387
|
|
2.28
|
%
|
Senior notes assumed by GE
|
2021-2054
|
23,024
|
|
4.17
|
|
29,218
|
|
4.30
|
|
||
Subordinated notes assumed by GE
|
2021-2037
|
2,871
|
|
3.68
|
|
2,836
|
|
3.64
|
|
||
Other
|
|
324
|
|
|
417
|
|
|
||||
Total GE long-term borrowings
|
|
$
|
40,980
|
|
|
$
|
52,858
|
|
|
||
|
|
|
|
|
|
||||||
Senior notes
|
2021-2042
|
$
|
25,371
|
|
3.66
|
%
|
$
|
35,105
|
|
3.49
|
%
|
Subordinated notes
|
|
178
|
|
|
165
|
|
|
||||
Intercompany payable to GE
|
|
17,038
|
|
|
19,828
|
|
|
||||
Other
|
|
626
|
|
|
885
|
|
|
||||
Total GE Capital long-term borrowings
|
|
$
|
43,213
|
|
|
$
|
55,982
|
|
|
||
|
|
|
|
|
|
||||||
Eliminations
|
|
(17,038
|
)
|
|
(19,892
|
)
|
|
||||
Total long-term borrowings
|
|
$
|
67,155
|
|
|
$
|
88,949
|
|
|
||
Non-recourse borrowings of
consolidated securitization entities
|
2020-2021
|
1,655
|
|
1.34
|
%
|
1,875
|
|
2.05
|
%
|
||
Total borrowings
|
|
$
|
90,882
|
|
|
$
|
103,599
|
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
(In millions)
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
|||||
|
|
|
|
|
|
||||||||||
GE excluding assumed debt
|
$
|
766
|
|
$
|
47
|
|
$
|
4,994
|
|
$
|
1,360
|
|
$
|
773
|
|
GE Capital debt assumed by GE(a)
|
5,473
|
|
4,685
|
|
1,954
|
|
2,842
|
|
918
|
|
|||||
GE Capital other debt
|
11,226
|
(b)
|
1,930
|
|
2,215
|
|
2,418
|
|
117
|
|
(a)
|
Of these maturities, $3,369 million, $442 million, zero, zero and $528 million for 2020, 2021, 2022, 2023 and 2024 respectively, were effectively transferred to GE through intercompany loans with right of offset.
|
(b)
|
Fixed and floating rate notes of $443 million contain put options with exercise dates in 2020, which have final maturity beyond 2024.
|
December 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
|
$
|
16,755
|
|
$
|
9,511
|
|
$
|
183
|
|
$
|
5,655
|
|
$
|
32,104
|
|
Claim reserves(b)
|
4,238
|
|
252
|
|
1,125
|
|
|
5,615
|
|
||||||
Investment contracts(c)
|
—
|
|
1,136
|
|
1,055
|
|
—
|
|
2,191
|
|
|||||
Unearned premiums and other
|
30
|
|
196
|
|
96
|
|
—
|
|
322
|
|
|||||
|
21,023
|
|
11,095
|
|
2,459
|
|
5,655
|
|
40,232
|
|
|||||
Eliminations
|
—
|
|
—
|
|
(406
|
)
|
—
|
|
(406
|
)
|
|||||
Total
|
$
|
21,023
|
|
$
|
11,095
|
|
$
|
2,053
|
|
$
|
5,655
|
|
$
|
39,826
|
|
December 31, 2018 (In millions)
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
||||||||||
Future policy benefit reserves
|
$
|
16,029
|
|
$
|
9,495
|
|
$
|
169
|
|
$
|
2,247
|
|
$
|
27,940
|
|
Claim reserves(b)
|
3,917
|
|
230
|
|
1,178
|
|
—
|
|
5,324
|
|
|||||
Investment contracts(c)
|
—
|
|
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).
|
(b)
|
Other contracts included claim reserves of $342 million and $346 million related to short-duration contracts at Electric Insurance Company, net of eliminations, at December 31, 2019 and December 31, 2018, respectively.
|
(c)
|
Investment contracts are contracts without significant mortality or morbidity risks.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
•
|
We have observed a significant decline in market interest rates this year, which has resulted in a lower discount rate and adversely impacted our reserve margin by $1,344 million. As noted above, our discount rate is based upon the actual yields on our investment portfolio and our forecasted reinvestment rates, which comprise the future rates at which we expect to invest proceeds from investment maturities, net of operating cash flows, and projected future capital contributions. Market interest rates have declined by approximately 130 basis points since our 2018 premium deficiency test, with 60 basis points of this reduction occurring since the second quarter 2019. Although the movement in market rates impacts the reinvestment rate, it does not materially impact the actual yield on our existing investments. Furthermore, our assumed reinvestment rate on future fixed income investments is based both on current expected long-term average rates and market interest rates. Thus, a decline in market interest rates will not result in an equivalent decline in our discount rate assumption. Our discount rate assumption for purposes of performing the premium deficiency assessment resulted in weighted average rate of 5.74% compared to 6.04% in 2018. This decline in the discount rate from 2018 to 2019 reflected a lower reinvestment rate increasing to an expected long-term average investment yield over a longer period, lower prospective expected returns on higher yielding assets classes introduced with our 2018 strategic initiatives, and slightly lower actual yields on our investment security portfolio.
|
•
|
Higher levels of projected long-term care premium rate increases due to larger rate filings by some ceding companies than previously planned, which favorably impacted our reserve margin by $263 million. Since our premium deficiency testing performed in 2018, we have implemented approximately $200 million of previously approved rate increase actions. Our 2019 premium deficiency test includes approximately $2,000 million of anticipated future premium increases or benefit reductions associated with future in-force rate actions. This represents an increase of $300 million from our 2018 premium deficiency test to account for actions that are: (a) approved and not yet implemented, (b) filed but not yet approved, and (c) estimated on future filings through 2028, and includes the effect of the lower discount rate mentioned above.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
COST OF OUR BENEFITS PLANS AND ASSUMPTIONS
|
|||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
(Dollars in millions)
|
Principal pension
|
|
Other pension
|
|
Principal retiree benefit
|
|
|
Principal pension
|
|
Other pension
|
|
Principal retiree benefit
|
|
|
Principal pension
|
|
Other pension
|
|
Principal retiree benefit
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Components of expense (income)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Service cost - operating
|
$
|
654
|
|
$
|
246
|
|
$
|
58
|
|
|
$
|
888
|
|
$
|
323
|
|
$
|
63
|
|
|
$
|
1,055
|
|
$
|
542
|
|
$
|
94
|
|
Interest cost
|
2,780
|
|
542
|
|
202
|
|
|
2,658
|
|
548
|
|
196
|
|
|
2,856
|
|
561
|
|
224
|
|
|||||||||
Expected return on plan assets
|
(3,428
|
)
|
(1,144
|
)
|
(21
|
)
|
|
(3,248
|
)
|
(1,285
|
)
|
(29
|
)
|
|
(3,390
|
)
|
(1,176
|
)
|
(36
|
)
|
|||||||||
Amortization of net actuarial loss (gain)
|
3,439
|
|
319
|
|
(118
|
)
|
|
3,785
|
|
312
|
|
(79
|
)
|
|
2,812
|
|
418
|
|
(80
|
)
|
|||||||||
Amortization of prior service cost (credit)
|
135
|
|
3
|
|
(232
|
)
|
|
143
|
|
(9
|
)
|
(230
|
)
|
|
290
|
|
(5
|
)
|
(171
|
)
|
|||||||||
Curtailment / settlement loss (gain)(a)
|
349
|
|
13
|
|
(38
|
)
|
|
34
|
|
1
|
|
—
|
|
|
64
|
|
24
|
|
4
|
|
|||||||||
Non-operating
|
3,275
|
|
(267
|
)
|
(207
|
)
|
|
3,372
|
|
(433
|
)
|
(142
|
)
|
|
2,632
|
|
(178
|
)
|
(59
|
)
|
|||||||||
Net periodic expense (income)
|
$
|
3,929
|
|
$
|
(21
|
)
|
$
|
(149
|
)
|
|
$
|
4,260
|
|
$
|
(110
|
)
|
$
|
(79
|
)
|
|
$
|
3,687
|
|
$
|
364
|
|
$
|
35
|
|
Weighted-average assumptions used to determine benefit obligations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Discount rate
|
3.36
|
%
|
1.97
|
%
|
3.05
|
%
|
|
4.34
|
%
|
2.75
|
%
|
4.12
|
%
|
|
3.64
|
%
|
2.41
|
%
|
3.43
|
%
|
|||||||||
Compensation increases
|
2.95
|
|
3.16
|
|
3.75
|
|
|
3.60
|
|
3.16
|
|
3.60
|
|
|
3.55
|
|
3.09
|
|
3.55
|
|
|||||||||
Initial healthcare trend rate(b)
|
N/A
|
|
N/A
|
|
5.90
|
|
|
N/A
|
|
N/A
|
|
6.00
|
|
|
N/A
|
|
N/A
|
|
6.00
|
|
|||||||||
Weighted-average assumptions used to determine benefit cost
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Discount rate(c)
|
4.07
|
|
2.75
|
|
4.12
|
|
|
3.64
|
|
2.41
|
|
3.43
|
|
|
4.11
|
|
2.55
|
|
3.75
|
|
|||||||||
Expected rate of return on plan assets
|
6.75
|
|
6.76
|
|
7.00
|
|
|
6.75
|
|
6.75
|
|
7.00
|
|
|
7.50
|
|
6.75
|
|
7.00
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
PLAN FUNDED STATUS AND AMOUNTS RECORDED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||||||||||
|
2019
|
|
2018
|
|
||||||||||||||||||||
(in millions)
|
Principal pension
|
|
|
Other pension
|
|
|
Principal retiree benefit
|
|
|
Principal pension
|
|
|
Other pension
|
|
|
Principal retiree benefit
|
|
|
||||||
Change in benefit obligations
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at January 1
|
$
|
68,500
|
|
|
$
|
21,091
|
|
|
$
|
5,153
|
|
|
$
|
74,985
|
|
|
$
|
23,066
|
|
|
$
|
6,006
|
|
|
Service cost
|
654
|
|
|
246
|
|
|
58
|
|
|
888
|
|
|
323
|
|
|
63
|
|
|
||||||
Interest cost
|
2,780
|
|
|
542
|
|
|
202
|
|
|
2,658
|
|
|
548
|
|
|
196
|
|
|
||||||
Participant contributions
|
77
|
|
|
29
|
|
|
61
|
|
|
90
|
|
|
37
|
|
|
60
|
|
|
||||||
Plan amendments
|
(42
|
)
|
(a)
|
(17
|
)
|
|
(23
|
)
|
|
—
|
|
|
82
|
|
|
—
|
|
|
||||||
Actuarial loss (gain)
|
7,073
|
|
(b)
|
2,422
|
|
(e)
|
275
|
|
(e)
|
(6,263
|
)
|
(e)
|
(879
|
)
|
(e)
|
(593
|
)
|
(f)
|
||||||
Benefits paid
|
(3,788
|
)
|
|
(1,043
|
)
|
|
(533
|
)
|
|
(3,729
|
)
|
|
(1,002
|
)
|
|
(569
|
)
|
|
||||||
Curtailments
|
(838
|
)
|
|
(32
|
)
|
|
(33
|
)
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
||||||
Settlements
|
(2,657
|
)
|
(c)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||
Acquisitions (dispositions) / other - net
|
(3
|
)
|
|
(1,030
|
)
|
|
—
|
|
|
(129
|
)
|
|
(90
|
)
|
|
(10
|
)
|
|
||||||
Exchange rate adjustments
|
—
|
|
|
713
|
|
|
—
|
|
|
—
|
|
|
(983
|
)
|
|
—
|
|
|
||||||
Balance at December 31
|
$
|
71,756
|
|
(d)
|
$
|
22,921
|
|
|
$
|
5,160
|
|
(g)
|
$
|
68,500
|
|
(d)
|
$
|
21,091
|
|
|
$
|
5,153
|
|
(g)
|
Change in plan assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at January 1
|
50,009
|
|
|
17,537
|
|
|
362
|
|
|
50,361
|
|
|
19,306
|
|
|
518
|
|
|
||||||
Actual gain (loss) on plan assets
|
8,694
|
|
|
2,229
|
|
|
57
|
|
|
(2,996
|
)
|
|
(245
|
)
|
|
(17
|
)
|
|
||||||
Employer contributions
|
298
|
|
|
716
|
|
|
342
|
|
|
6,283
|
|
|
475
|
|
|
370
|
|
|
||||||
Participant contributions
|
77
|
|
|
29
|
|
|
61
|
|
|
90
|
|
|
37
|
|
|
60
|
|
|
||||||
Benefits paid
|
(3,788
|
)
|
|
(1,043
|
)
|
|
(533
|
)
|
|
(3,729
|
)
|
|
(1,002
|
)
|
|
(569
|
)
|
|
||||||
Settlements
|
(2,657
|
)
|
(c)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||
Acquisitions (dispositions) / other - net
|
—
|
|
|
(1,030
|
)
|
|
—
|
|
|
—
|
|
|
(185
|
)
|
|
—
|
|
|
||||||
Exchange rate adjustments
|
—
|
|
|
704
|
|
|
—
|
|
|
—
|
|
|
(849
|
)
|
|
—
|
|
|
||||||
Balance at December 31
|
$
|
52,633
|
|
|
$
|
19,142
|
|
|
$
|
289
|
|
|
$
|
50,009
|
|
|
$
|
17,537
|
|
|
$
|
362
|
|
|
Funded status - deficit(h)
|
$
|
19,123
|
|
|
$
|
3,779
|
|
|
$
|
4,871
|
|
|
$
|
18,491
|
|
|
$
|
3,554
|
|
|
$
|
4,791
|
|
|
Amounts recorded in the consolidated Statement of Financial Position
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-current assets - other
|
—
|
|
|
475
|
|
|
—
|
|
|
—
|
|
|
746
|
|
|
—
|
|
|
||||||
Current liabilities - other
|
(296
|
)
|
|
(123
|
)
|
|
(355
|
)
|
|
(280
|
)
|
|
(117
|
)
|
|
(378
|
)
|
|
||||||
Non-current liabilities - compensation and benefits
|
(18,827
|
)
|
|
(4,131
|
)
|
|
(4,516
|
)
|
|
(18,211
|
)
|
|
(4,183
|
)
|
|
(4,413
|
)
|
|
||||||
Net amount recorded
|
$
|
(19,123
|
)
|
|
$
|
(3,779
|
)
|
|
$
|
(4,871
|
)
|
|
$
|
(18,491
|
)
|
|
$
|
(3,554
|
)
|
|
$
|
(4,791
|
)
|
|
Amounts recorded in Accumulated other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Prior service cost (credit)
|
67
|
|
|
(16
|
)
|
|
(2,376
|
)
|
|
596
|
|
|
7
|
|
|
(2,584
|
)
|
|
||||||
Actuarial loss (gain)
|
7,961
|
|
|
4,665
|
|
|
(833
|
)
|
|
10,430
|
|
|
3,740
|
|
|
(1,196
|
)
|
|
||||||
Total recorded in Accumulated other comprehensive income (loss)
|
$
|
8,028
|
|
|
$
|
4,649
|
|
|
$
|
(3,209
|
)
|
|
$
|
11,026
|
|
|
$
|
3,747
|
|
|
$
|
(3,780
|
)
|
|
(a)
|
GE Supplementary Pension Plan amendment for the U.S. pension changes announced in October 2019 offset by other plan amendments adopted in 2019.
|
(b)
|
Principally associated with discount rate changes offset by impact of the one-time lump sum payments.
|
(c)
|
Payments made to former employees from the GE Pension Trust for the one-time lump sum payments.
|
(d)
|
The PBO for the GE Supplementary Pension Plan, which is an unfunded plan, was $6,691 million and $6,110 million at year-end 2019 and 2018, respectively.
|
(e)
|
Principally associated with discount rate changes.
|
(f)
|
Principally due to discount rate changes and favorable cost trends.
|
(g)
|
The benefit obligation for retiree health plans was $3,306 million and $3,425 million at December 31, 2019 and 2018, respectively.
|
(h)
|
Total unfunded status for principal pension plan, other pension plans and principal retiree benefit plans was $27,773 million and $26,836 million at December 31, 2019 and 2018, respectively. Of these amounts, $14,340 million and $13,292 million at December 31, 2019 and 2018, respectively, related to plans that are not subject to regulatory funding requirements and the benefits for these plans are funded as they become due.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
2019
|
|
2018
|
||||||||||||
(In millions)
|
Principal pension
|
|
|
Other pension
|
|
|
Principal pension
|
|
|
Other pension
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Global equity
|
$
|
6,826
|
|
|
$
|
3,484
|
|
|
$
|
6,015
|
|
|
$
|
4,323
|
|
Debt securities
|
|
|
|
|
|
|
|
||||||||
Fixed income and cash investment funds
|
4,398
|
|
|
8,089
|
|
|
2,069
|
|
|
6,320
|
|
||||
U.S. corporate(a)
|
8,025
|
|
|
365
|
|
|
8,734
|
|
|
397
|
|
||||
Other debt securities(b)
|
6,076
|
|
|
424
|
|
|
5,264
|
|
|
472
|
|
||||
Real estate
|
2,309
|
|
|
140
|
|
|
2,218
|
|
|
175
|
|
||||
Private equities and other investments
|
23
|
|
|
452
|
|
|
557
|
|
|
369
|
|
||||
Total
|
27,657
|
|
|
12,954
|
|
|
24,857
|
|
|
12,056
|
|
||||
Plan assets measured at net asset value
|
|
|
|
|
|
|
|
||||||||
Global equity
|
14,616
|
|
|
1,450
|
|
|
12,558
|
|
|
1,228
|
|
||||
Debt securities
|
3,744
|
|
|
914
|
|
|
6,400
|
|
|
883
|
|
||||
Real estate
|
1,167
|
|
|
1,930
|
|
|
1,261
|
|
|
1,704
|
|
||||
Private equities and other investments
|
5,449
|
|
|
1,894
|
|
|
4,933
|
|
|
1,666
|
|
||||
Total plan assets at fair value
|
$
|
52,633
|
|
|
$
|
19,142
|
|
|
$
|
50,009
|
|
|
$
|
17,537
|
|
(a)
|
Primarily represented investment-grade bonds of U.S. issuers from diverse industries.
|
(b)
|
Primarily represented investments in residential and commercial mortgage-backed securities, non-U.S. corporate and government bonds and U.S. government, federal agency, state and municipal debt.
|
ASSET ALLOCATION OF PENSION PLANS
|
2019 Target allocation
|
|
2019 Actual allocation
|
||||||||
|
Principal Pension
|
|
|
Other Pension (weighted average)
|
|
|
Principal Pension
|
|
|
Other Pension (weighted average)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global equity
|
30.0 - 47.0
|
%
|
|
23
|
%
|
|
41
|
%
|
|
27
|
%
|
Debt securities (including cash equivalents)
|
21.0 - 65.0
|
|
|
55
|
|
|
42
|
|
|
51
|
|
Real estate
|
3.5 - 13.5
|
|
|
9
|
|
|
7
|
|
|
11
|
|
Private equities & other investments
|
6.0 - 16.0
|
|
|
13
|
|
|
10
|
|
|
11
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
EXPECTED FUTURE BENEFIT PAYMENTS OF OUR BENEFIT PLANS
(In millions)
|
Principal pension
|
|
|
Other pension
|
|
|
Principal retiree benefit
|
|
|||
|
|
|
|
|
|
||||||
2020
|
$
|
3,795
|
|
|
$
|
1,030
|
|
|
$
|
495
|
|
2021
|
3,875
|
|
|
1,005
|
|
|
475
|
|
|||
2022
|
3,930
|
|
|
1,015
|
|
|
455
|
|
|||
2023
|
3,965
|
|
|
1,035
|
|
|
435
|
|
|||
2024
|
3,980
|
|
|
1,050
|
|
|
415
|
|
|||
2025 - 2029
|
19,965
|
|
|
5,550
|
|
|
1,775
|
|
COST OF POSTRETIREMENT BENEFIT PLANS AND CHANGES IN OTHER COMPREHENSIVE INCOME
|
|
||||||||||||||||||||||||||||
For the years ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
(In millions, pre-tax)
|
Principal pension
|
|
Other pension
|
|
Principal retiree benefit
|
|
|
Principal pension
|
|
Other pension
|
|
Principal retiree benefit
|
|
|
Principal pension
|
|
Other pension
|
|
Principal retiree benefit
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Cost (income) of postretirement benefit plans
|
$
|
3,929
|
|
$
|
(21
|
)
|
$
|
(149
|
)
|
|
$
|
4,260
|
|
$
|
(110
|
)
|
$
|
(79
|
)
|
|
$
|
3,687
|
|
$
|
364
|
|
$
|
35
|
|
Changes in other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Prior service cost (credit) - current year
|
(42
|
)
|
(17
|
)
|
(23
|
)
|
|
—
|
|
82
|
|
—
|
|
|
—
|
|
—
|
|
(8
|
)
|
|||||||||
Actuarial loss (gain) - current year
|
971
|
|
1,252
|
|
240
|
|
|
(111
|
)
|
464
|
|
(543
|
)
|
|
474
|
|
(639
|
)
|
(128
|
)
|
|||||||||
Reclassifications out of AOCI
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Curtailment / settlement gain (loss)
|
(353
|
)
|
(12
|
)
|
4
|
|
|
(45
|
)
|
(2
|
)
|
—
|
|
|
(64
|
)
|
(20
|
)
|
(4
|
)
|
|||||||||
Amortization of net actuarial gain (loss)
|
(3,439
|
)
|
(319
|
)
|
118
|
|
|
(3,785
|
)
|
(312
|
)
|
79
|
|
|
(2,812
|
)
|
(418
|
)
|
80
|
|
|||||||||
Amortization of prior service credit (cost)
|
(135
|
)
|
(3
|
)
|
232
|
|
|
(143
|
)
|
9
|
|
230
|
|
|
(290
|
)
|
5
|
|
171
|
|
|||||||||
Total changes in other comprehensive income
|
(2,998
|
)
|
901
|
|
571
|
|
|
(4,084
|
)
|
241
|
|
(234
|
)
|
|
(2,692
|
)
|
(1,072
|
)
|
111
|
|
|||||||||
Cost of postretirement benefit plans and changes in other comprehensive income
|
$
|
931
|
|
$
|
880
|
|
$
|
422
|
|
|
$
|
176
|
|
$
|
131
|
|
$
|
(313
|
)
|
|
$
|
995
|
|
$
|
(708
|
)
|
$
|
146
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
December 31 (In millions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Sales allowances, equipment projects and other commercial liabilities
|
$
|
5,203
|
|
$
|
5,255
|
|
Product warranties (Note 23)
|
1,371
|
|
1,346
|
|
||
Employee compensation and benefit liabilities
|
5,114
|
|
5,138
|
|
||
Taxes payable
|
1,349
|
|
503
|
|
||
Environmental, health and safety liabilities (Note 23)
|
330
|
|
204
|
|
||
Due to GE Capital
|
1,080
|
|
1,578
|
|
||
Other
|
2,385
|
|
2,422
|
|
||
Other GE current liabilities
|
16,833
|
|
16,444
|
|
||
Eliminations
|
(1,080
|
)
|
(1,578
|
)
|
||
Consolidated other GE current liabilities
|
$
|
15,753
|
|
$
|
14,866
|
|
|
|
|
||||
Sales allowances, equipment projects and other commercial liabilities
|
4,422
|
|
5,136
|
|
||
Product warranties (Note 23)
|
793
|
|
846
|
|
||
Uncertain tax positions and related liabilities
|
2,585
|
|
3,404
|
|
||
Alstom legacy legal matters (Note 23)
|
875
|
|
889
|
|
||
Environmental, health and safety liabilities (Note 23)
|
2,154
|
|
1,968
|
|
||
Redeemable noncontrolling interests (Note 16)
|
439
|
|
378
|
|
||
Derivative instruments (Note 21)
|
171
|
|
328
|
|
||
Other
|
1,349
|
|
1,931
|
|
||
GE all other liabilities
|
$
|
12,787
|
|
$
|
14,881
|
|
|
|
|
||||
Aircraft maintenance reserve, sales deposits and other commercial liabilities
|
2,900
|
|
2,585
|
|
||
Interest payable
|
1,189
|
|
1,458
|
|
||
Uncertain tax positions and other taxes payable
|
394
|
|
1,646
|
|
||
Derivative instruments (Note 21)
|
31
|
|
258
|
|
||
Other
|
525
|
|
1,615
|
|
||
GE Capital other liabilities
|
$
|
5,040
|
|
$
|
7,562
|
|
Eliminations
|
(1,244
|
)
|
(1,605
|
)
|
||
Consolidated all other liabilities
|
$
|
16,583
|
|
$
|
20,839
|
|
Total
|
$
|
32,336
|
|
$
|
35,705
|
|
(BENEFIT) PROVISION FOR INCOME TAXES (In millions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Current tax expense (benefit)
|
$
|
2,551
|
|
$
|
1,743
|
|
$
|
2,405
|
|
Deferred tax expense (benefit) from temporary differences
|
(1,242
|
)
|
(1,276
|
)
|
1,088
|
|
|||
Total GE
|
1,309
|
|
467
|
|
3,493
|
|
|||
Current tax expense (benefit)
|
(720
|
)
|
596
|
|
(1,008
|
)
|
|||
Deferred tax expense (benefit) from temporary differences
|
138
|
|
(970
|
)
|
(5,294
|
)
|
|||
Total GE Capital
|
(582
|
)
|
(374
|
)
|
(6,302
|
)
|
|||
Current tax expense (benefit)
|
1,831
|
|
2,339
|
|
1,397
|
|
|||
Deferred tax expense (benefit) from temporary differences
|
(1,104
|
)
|
(2,245
|
)
|
(4,205
|
)
|
|||
Total consolidated
|
$
|
726
|
|
$
|
93
|
|
$
|
(2,808
|
)
|
CONSOLIDATED EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (In millions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
U.S. earnings
|
$
|
506
|
|
$
|
(9,861
|
)
|
$
|
(17,918
|
)
|
Non-U.S. earnings
|
643
|
|
(11,126
|
)
|
6,573
|
|
|||
Total
|
$
|
1,149
|
|
$
|
(20,987
|
)
|
$
|
(11,345
|
)
|
CONSOLIDATED (BENEFIT) PROVISION FOR INCOME TAXES (In millions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
U.S. Federal
|
|
|
|
||||||
Current
|
$
|
146
|
|
$
|
1,019
|
|
$
|
(734
|
)
|
Deferred
|
(1,266
|
)
|
(3,144
|
)
|
(3,625
|
)
|
|||
Non - U.S.
|
|
|
|
||||||
Current
|
2,008
|
|
1,132
|
|
1,820
|
|
|||
Deferred
|
106
|
|
1,197
|
|
(429
|
)
|
|||
Other
|
(267
|
)
|
(111
|
)
|
160
|
|
|||
Total
|
$
|
726
|
|
$
|
93
|
|
$
|
(2,808
|
)
|
INCOME TAXES PAID (RECOVERED) (In millions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
GE
|
$
|
2,183
|
|
$
|
1,803
|
|
$
|
2,700
|
|
GE Capital
|
45
|
|
65
|
|
(264
|
)
|
|||
Total(a)
|
$
|
2,228
|
|
$
|
1,868
|
|
$
|
2,436
|
|
(a)
|
U.S. general business credits, primarily the credit for energy produced from renewable sources and the credit for research performed in the U.S.
|
(b)
|
Included, for each period, the expense or benefit for Other taxes reported above in the consolidated (benefit) provision for income taxes, net of 21.0% federal effect for the years ended December 31, 2019 and 2018 and 35.0% federal effect for the year ended December 31, 2017.
|
(c)
|
For the year ended December 31, 2019, included (12.5)% and (11.3)% in consolidated and GE, respectively, related to the disposition of the Digital ServiceMax business. For the year ended December 31, 2018, included 2.8% and 2.8% in consolidated and GE, respectively, related to deductible stock losses. Included in 2017 is 5.6% and 11.7% in consolidated and GE, respectively, related to the disposition of the Water business. Also included in 2017 is (3.1)% and (6.4)% in consolidated and GE, respectively, related to losses on planned dispositions.
|
(d)
|
For the year ended December 31, 2019, included (32.9)%, (27.9)% and 3.5% in consolidated, GE and GE Capital, respectively for the resolution of the IRS audit of our consolidated U.S. income tax returns for 2012-2013.
|
UNRECOGNIZED TAX BENEFITS December 31 (Dollars in millions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Unrecognized tax benefits
|
$
|
4,169
|
|
$
|
5,563
|
|
Portion that, if recognized, would reduce tax expense and effective tax rate(a)
|
2,701
|
|
4,265
|
|
||
Accrued interest on unrecognized tax benefits
|
722
|
|
934
|
|
||
Accrued penalties on unrecognized tax benefits
|
195
|
|
182
|
|
||
Reasonably possible reduction to the balance of unrecognized tax benefits
in succeeding 12 months
|
0-700
|
|
0-1,300
|
|
||
Portion that, if recognized, would reduce tax expense and effective tax rate(a)
|
0-650
|
|
0-1,200
|
|
(a)
|
For 2019, reductions included $710 million related to the completion of the 2012-2013 IRS audit and $442 million related to the deconsolidation of Baker Hughes.
|
DEFERRED INCOME TAXES December 31 (In millions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
GE
|
$
|
12,807
|
|
$
|
14,479
|
|
GE Capital
|
5,124
|
|
6,214
|
|
||
Total assets
|
17,931
|
|
20,693
|
|
||
GE
|
(4,618
|
)
|
(4,302
|
)
|
||
GE Capital
|
(3,424
|
)
|
(4,278
|
)
|
||
Eliminations
|
—
|
|
4
|
|
||
Total liabilities
|
(8,042
|
)
|
(8,576
|
)
|
||
Net deferred income tax asset (liability)
|
$
|
9,889
|
|
$
|
12,117
|
|
COMPONENTS OF THE NET DEFERRED INCOME TAX ASSET (LIABILITY)
December 31 (In millions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
Principal pension plans
|
$
|
4,016
|
|
$
|
3,883
|
|
Other non-current compensation and benefits
|
2,206
|
|
2,431
|
|
||
Provision for expenses
|
1,990
|
|
2,208
|
|
||
Intangible assets
|
1,315
|
|
820
|
|
||
Retiree insurance plans
|
1,023
|
|
1,006
|
|
||
Non-U.S. loss carryforwards(a)
|
602
|
|
1,362
|
|
||
U.S. credit carryforwards(b)
|
74
|
|
74
|
|
||
Baker Hughes investment
|
(1,256
|
)
|
721
|
|
||
Contract assets
|
(1,232
|
)
|
(1,781
|
)
|
||
Depreciation
|
(823
|
)
|
(855
|
)
|
||
Other – net(c)
|
274
|
|
307
|
|
||
GE
|
8,189
|
|
10,176
|
|
||
Operating leases
|
(2,218
|
)
|
(2,690
|
)
|
||
Financing leases
|
(477
|
)
|
(599
|
)
|
||
Intangible assets
|
(10
|
)
|
(16
|
)
|
||
Insurance company loss reserves
|
1,715
|
|
1,386
|
|
||
Non-U.S. loss carryforwards(a)
|
1,274
|
|
1,231
|
|
||
U.S. credit carryforwards(b)
|
785
|
|
2,491
|
|
||
Other – net(c)
|
631
|
|
133
|
|
||
GE Capital
|
1,700
|
|
1,936
|
|
||
Eliminations
|
—
|
|
4
|
|
||
Net deferred income tax asset (liability)
|
$
|
9,889
|
|
$
|
12,117
|
|
(a)
|
Net of valuation allowances of $4,801 million and $3,799 million for GE and $201 million and $767 million for GE Capital as of December 31, 2019 and 2018, respectively. Of the net deferred tax asset as of December 31, 2019 of $1,876 million, $3 million relates to net operating loss carryforwards that expire in various years ending from December 31, 2020 through December 31, 2022; $193 million relates to net operating losses that expire in various years ending from December 31, 2023 through December 31, 2039 and $1,680 million relates to net operating loss carryforwards that may be carried forward indefinitely.
|
(b)
|
Of the net deferred tax asset as of December 31, 2019 of $859 million for U.S. credit carryforwards, $74 million expires in the years ending December 31, 2030 through 2032 and $785 million expires in various years ending from December 31, 2036 through December 31, 2039.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (In millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
(39
|
)
|
|
$
|
(102
|
)
|
|
$
|
674
|
|
Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes of $32, $41 and $(335)(a)
|
141
|
|
|
87
|
|
|
(627
|
)
|
|||
Reclassifications from OCI – net of deferred taxes of $(11), $(6) and $(81)
|
(42
|
)
|
|
(23
|
)
|
|
(149
|
)
|
|||
Other comprehensive income (loss)
|
100
|
|
|
64
|
|
|
(776
|
)
|
|||
Less OCI attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
1
|
|
|||
Investment securities ending balance
|
$
|
61
|
|
|
$
|
(39
|
)
|
|
$
|
(102
|
)
|
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
(6,134
|
)
|
|
$
|
(4,661
|
)
|
|
$
|
(6,806
|
)
|
OCI before reclassifications – net of deferred taxes of $(98), $29 and $(537)
|
41
|
|
|
(2,076
|
)
|
|
846
|
|
|||
Reclassifications from OCI – net of deferred taxes of $(9), $89 and $(543)(b)
|
1,234
|
|
|
412
|
|
|
1,333
|
|
|||
Other comprehensive income (loss)
|
1,275
|
|
|
(1,664
|
)
|
|
2,179
|
|
|||
Less OCI attributable to noncontrolling interests
|
(40
|
)
|
|
(192
|
)
|
|
35
|
|
|||
Currency translation adjustments ending balance
|
$
|
(4,818
|
)
|
|
$
|
(6,134
|
)
|
|
$
|
(4,661
|
)
|
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
13
|
|
|
$
|
62
|
|
|
$
|
12
|
|
OCI before reclassifications – net of deferred taxes of $6, $(26) and $31
|
(21
|
)
|
|
(149
|
)
|
|
171
|
|
|||
Reclassifications from OCI – net of deferred taxes of $2, $4 and $(28)
|
58
|
|
|
98
|
|
|
(120
|
)
|
|||
Other comprehensive income (loss)
|
37
|
|
|
(51
|
)
|
|
51
|
|
|||
Less OCI attributable to noncontrolling interests
|
2
|
|
|
(2
|
)
|
|
1
|
|
|||
Cash flow hedges ending balance
|
$
|
49
|
|
|
$
|
13
|
|
|
$
|
62
|
|
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
(8,254
|
)
|
|
$
|
(9,702
|
)
|
|
$
|
(12,469
|
)
|
OCI before reclassifications – net of deferred taxes of $(355), $115 and $32
|
(1,820
|
)
|
|
71
|
|
|
550
|
|
|||
Reclassifications from OCI – net of deferred taxes of $852, $2,610 and $1,111
|
3,048
|
|
|
1,345
|
|
|
2,232
|
|
|||
Other comprehensive income (loss)
|
1,228
|
|
|
1,416
|
|
|
2,782
|
|
|||
Less OCI attributable to noncontrolling interests
|
(2
|
)
|
|
(32
|
)
|
|
15
|
|
|||
Benefit plans ending balance
|
$
|
(7,024
|
)
|
|
$
|
(8,254
|
)
|
|
$
|
(9,702
|
)
|
|
|
|
|
|
|
||||||
Accumulated other comprehensive income (loss) at December 31
|
$
|
(11,732
|
)
|
|
$
|
(14,414
|
)
|
|
$
|
(14,404
|
)
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
WEIGHTED AVERAGE GRANT DATE FAIR VALUE
|
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
|
||||||
Stock Options
|
|
$
|
3.48
|
|
$
|
3.00
|
|
$
|
3.81
|
|
RSUs
|
|
10.12
|
|
13.96
|
|
24.89
|
|
|||
PSUs
|
|
10.73
|
|
4.80
|
|
N/A
|
|
STOCK-BASED COMPENSATION ACTIVITY
|
Stock Options
|
|
RSUs
|
||||||||||||||||
Shares (in millions)
|
|
Weighted average exercise price
|
|
Weighted average contractual term (in years)
|
Intrinsic value (in millions)
|
|
|
Shares (in millions)
|
|
Weighted average grant date fair value
|
|
Weighted average contractual term (in years)
|
Intrinsic value (in millions)
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Outstanding at January 1, 2019
|
466
|
|
$
|
19.59
|
|
|
|
|
29
|
|
$
|
18.07
|
|
|
|
||||
Spin-off adjustment (a)
|
17
|
|
N/A
|
|
|
|
|
|
1
|
|
N/A
|
|
|
|
|
||||
Granted
|
34
|
|
10.00
|
|
|
|
|
16
|
|
10.12
|
|
|
|
||||||
Exercised
|
(7
|
)
|
9.36
|
|
|
|
|
(15
|
)
|
17.04
|
|
|
|
||||||
Forfeited
|
(11
|
)
|
13.66
|
|
|
|
|
(3
|
)
|
15.40
|
|
|
|
||||||
Expired
|
(41
|
)
|
17.24
|
|
|
|
|
N/A
|
|
N/A
|
|
|
|
|
|||||
Outstanding at December 31, 2019
|
458
|
|
$
|
18.66
|
|
4.6
|
$
|
185
|
|
|
28
|
|
$
|
13.29
|
|
1.4
|
$
|
315
|
|
Exercisable at December 31, 2019
|
335
|
|
$
|
21.03
|
|
3.1
|
$
|
—
|
|
|
N/A
|
|
N/A
|
|
N/A
|
N/A
|
|
||
Expected to vest
|
113
|
|
$
|
12.36
|
|
8.5
|
$
|
165
|
|
|
26
|
|
$
|
13.45
|
|
1.3
|
$
|
285
|
|
(a)
|
In connection with the spin-off of GE Transportation and pursuant to the anti-dilution provisions of the 2007 Long Term Incentive Plan, the Company made adjustments to exercise price and the number of shares to preserve the intrinsic value of the awards prior to the separation. The adjustments to the stock-based compensation awards did not result in additional compensation expense.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Compensation expense (after-tax)(a)(b)
|
$
|
400
|
|
$
|
336
|
|
$
|
241
|
|
Cash received from stock options exercised
|
69
|
|
24
|
|
528
|
|
|||
Intrinsic value of stock options exercised and RSUs vested
|
154
|
|
83
|
|
493
|
|
(a)
|
Unrecognized compensation cost related to unvested equity awards as of December 31, 2019 was $515 million, which will be amortized over a weighted average period of 1.1 years.
|
(b)
|
Income tax benefit recognized in earnings was $20 million, $40 million and $138 million in 2019, 2018, and 2017, respectively.
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
(In millions; per-share amounts in dollars)
|
Diluted
|
|
Basic
|
|
|
Diluted
|
|
Basic
|
|
|
Diluted
|
|
Basic
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings (loss) from continuing operations for
per-share calculation
|
$
|
416
|
|
$
|
416
|
|
|
$
|
(20,997
|
)
|
$
|
(20,997
|
)
|
|
$
|
(8,270
|
)
|
$
|
(8,270
|
)
|
Preferred stock dividends
|
(460
|
)
|
(460
|
)
|
|
(447
|
)
|
(447
|
)
|
|
(436
|
)
|
(436
|
)
|
||||||
Earnings (loss) from continuing operations attributable to
common shareholders for per-share calculation |
$
|
(45
|
)
|
$
|
(45
|
)
|
|
$
|
(21,445
|
)
|
$
|
(21,445
|
)
|
|
$
|
(8,706
|
)
|
$
|
(8,706
|
)
|
Earnings (loss) from discontinued operations for
per-share calculation
|
(5,396
|
)
|
(5,396
|
)
|
|
(1,372
|
)
|
(1,372
|
)
|
|
(251
|
)
|
(251
|
)
|
||||||
Net earnings (loss) attributable to GE common
shareholders for per-share calculation
|
(5,440
|
)
|
(5,440
|
)
|
|
(22,809
|
)
|
(22,809
|
)
|
|
(8,944
|
)
|
(8,944
|
)
|
||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Shares of GE common stock outstanding
|
8,724
|
|
8,724
|
|
|
8,691
|
|
8,691
|
|
|
8,687
|
|
8,687
|
|
||||||
Employee compensation-related shares (including
stock options) and warrants(a)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Total average equivalent shares
|
8,724
|
|
8,724
|
|
|
8,691
|
|
8,691
|
|
|
8,687
|
|
8,687
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings (loss) from continuing operations
|
$
|
(0.01
|
)
|
$
|
(0.01
|
)
|
|
$
|
(2.47
|
)
|
$
|
(2.47
|
)
|
|
$
|
(1.00
|
)
|
$
|
(1.00
|
)
|
Earnings (loss) from discontinued operations
|
(0.62
|
)
|
(0.62
|
)
|
|
(0.16
|
)
|
(0.16
|
)
|
|
(0.03
|
)
|
(0.03
|
)
|
||||||
Net earnings (loss)
|
(0.62
|
)
|
(0.62
|
)
|
|
(2.62
|
)
|
(2.62
|
)
|
|
(1.03
|
)
|
(1.03
|
)
|
||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Potentially dilutive securities(a)
|
|
450
|
|
|
|
420
|
|
|
|
119
|
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Purchases and sales of business interests(a)
|
$
|
3
|
|
$
|
1,234
|
|
$
|
1,024
|
|
Licensing and royalty income
|
256
|
|
218
|
|
188
|
|
|||
Associated companies
|
206
|
|
21
|
|
208
|
|
|||
Net interest and investment income(b)
|
1,220
|
|
562
|
|
358
|
|
|||
Other items
|
515
|
|
282
|
|
115
|
|
|||
GE
|
2,200
|
|
2,317
|
|
1,893
|
|
|||
Eliminations
|
22
|
|
4
|
|
189
|
|
|||
Total
|
$
|
2,222
|
|
$
|
2,321
|
|
$
|
2,083
|
|
(a)
|
Included a pre-tax gain of $224 million on the sale of ServiceMax partially offset by charges to the valuation allowance on businesses classified as held for sale of $245 million in 2019. Included pre-tax gains of $737 million on the sale of Distributed Power, $681 million on the sale of Value-Based Care and $267 million on the sale of Industrial Solutions, partially offset by charges to the valuation allowance on businesses classified as held for sale of $554 million in 2018. Included a pre-tax gain of $1,931 million on the sale of our Water business, partially offset by charges to the valuation allowance on businesses classified as held for sale of $1,000 million in 2017. See Note 2 for further information.
|
(b)
|
Included unrealized gain of $793 million related to our interest in Baker Hughes in 2019. Included interest income associated with customer advances of $143 million, $136 million and $105 million in 2019, 2018 and 2017, respectively. See Notes 1, 3 and 9.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS December 31 (In millions)
|
|
|||||||||||||||||||||||||||||
|
Level 1
|
Level 2
|
Level 3(a)
|
Netting
adjustment(d) |
Net balance(b)
|
|||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Investment securities
|
$
|
9,704
|
|
$
|
88
|
|
$
|
33,606
|
|
$
|
29,408
|
|
$
|
5,210
|
|
$
|
4,013
|
|
$
|
—
|
|
$
|
—
|
|
$
|
48,521
|
|
$
|
33,508
|
|
Derivatives
|
—
|
|
—
|
|
2,561
|
|
2,197
|
|
11
|
|
8
|
|
(1,832
|
)
|
(2,001
|
)
|
740
|
|
205
|
|
||||||||||
Total assets
|
$
|
9,704
|
|
$
|
88
|
|
$
|
36,167
|
|
$
|
31,605
|
|
$
|
5,221
|
|
$
|
4,021
|
|
$
|
(1,832
|
)
|
$
|
(2,001
|
)
|
$
|
49,261
|
|
$
|
33,713
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Derivatives
|
$
|
—
|
|
$
|
—
|
|
$
|
834
|
|
$
|
1,814
|
|
$
|
19
|
|
$
|
6
|
|
$
|
(651
|
)
|
$
|
(1,234
|
)
|
$
|
202
|
|
$
|
586
|
|
Other(c)
|
—
|
|
—
|
|
807
|
|
722
|
|
—
|
|
—
|
|
—
|
|
—
|
|
807
|
|
722
|
|
||||||||||
Total liabilities
|
$
|
—
|
|
$
|
—
|
|
$
|
1,641
|
|
$
|
2,535
|
|
$
|
19
|
|
$
|
6
|
|
$
|
(651
|
)
|
$
|
(1,234
|
)
|
$
|
1,009
|
|
$
|
1,308
|
|
(a)
|
Included debt securities classified within Level 3 of $3,977 million of U.S. corporate and $330 million of Government and agencies securities at December 31, 2019, and $3,498 million of U.S. corporate and $292 million of Government and agencies securities at December 31, 2018.
|
(b)
|
See Notes 3 and 21 for further information on the composition of our investment securities and derivative portfolios.
|
(c)
|
Primarily represents the liabilities associated with certain of our deferred incentive compensation plans.
|
(d)
|
The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts include fair value adjustments related to our own and counterparty non-performance risk.
|
(In millions)
|
Balance at
January 1 |
|
Net realized/unrealized gains(losses)(a)
|
|
Purchases(b)
|
|
Sales & Settlements
|
|
Transfers
into Level 3 |
|
Transfers
out of Level 3 |
|
Balance at
December 31 |
|
|||||||
|
|
|
|
|
|
|
|
||||||||||||||
2019
|
|
|
|
|
|
|
|
||||||||||||||
Investment securities
|
$
|
4,013
|
|
$
|
399
|
|
$
|
2,159
|
|
$
|
(1,308
|
)
|
$
|
—
|
|
$
|
(53
|
)
|
$
|
5,210
|
|
2018
|
|
|
|
|
|
|
|
||||||||||||||
Investment securities
|
$
|
4,109
|
|
$
|
(231
|
)
|
$
|
729
|
|
$
|
(333
|
)
|
$
|
2
|
|
$
|
(262
|
)
|
$
|
4,013
|
|
(a)
|
Primarily included net unrealized gains (losses) of $404 million and $(231) million in other comprehensive income for the years ended December 31, 2019 and December 31, 2018, respectively.
|
(b)
|
Included $975 million and $615 million of U.S. corporate debt securities for the years ended December 31, 2019 and 2018, respectively.
|
|
Remeasured during the years ended December 31
|
||||||||||||
|
2019
|
|
2018
|
||||||||||
(In millions)
|
Level 2
|
Level 3
|
|
Level 2
|
Level 3
|
||||||||
|
|
|
|
|
|
||||||||
Financing receivables and financing receivables held for sale
|
$
|
—
|
|
$
|
21
|
|
|
$
|
—
|
|
$
|
47
|
|
Equity securities without readily determinable fair value and equity method investments
|
—
|
|
306
|
|
|
479
|
|
874
|
|
||||
Long-lived assets
|
12
|
|
412
|
|
|
152
|
|
422
|
|
||||
Goodwill
|
—
|
|
—
|
|
|
—
|
|
2,440
|
|
||||
Total
|
$
|
12
|
|
$
|
739
|
|
|
$
|
631
|
|
$
|
3,783
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||
(In millions)
|
Carrying
amount (net) |
|
Estimated
fair value |
|
|
Carrying
amount (net) |
|
Estimated
fair value |
|
||||
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
||||||||
Loans and other receivables
|
$
|
4,113
|
|
$
|
4,208
|
|
|
$
|
8,811
|
|
$
|
8,829
|
|
Liabilities
|
|
|
|
|
|
||||||||
Borrowings (Note 11)
|
$
|
90,882
|
|
$
|
97,754
|
|
|
$
|
103,599
|
|
$
|
100,492
|
|
Investment contracts (Note 12)
|
2,191
|
|
2,588
|
|
|
2,388
|
|
2,630
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||
(In millions)
|
Gross Notional
|
|
All other assets
|
|
All other liabilities
|
|
|
Gross Notional
|
|
All other assets
|
|
All other liabilities
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
$
|
23,918
|
|
$
|
1,636
|
|
$
|
11
|
|
|
$
|
22,904
|
|
$
|
1,335
|
|
$
|
23
|
|
Currency exchange contracts
|
7,044
|
|
99
|
|
46
|
|
|
7,854
|
|
175
|
|
114
|
|
||||||
Derivatives accounted for as hedges
|
$
|
30,961
|
|
$
|
1,734
|
|
$
|
57
|
|
|
$
|
30,758
|
|
$
|
1,511
|
|
$
|
138
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
$
|
3,185
|
|
$
|
18
|
|
$
|
12
|
|
|
$
|
6,198
|
|
$
|
28
|
|
$
|
2
|
|
Currency exchange contracts
|
62,165
|
|
697
|
|
744
|
|
|
77,544
|
|
653
|
|
1,472
|
|
||||||
Other contracts
|
1,706
|
|
123
|
|
40
|
|
|
2,604
|
|
13
|
|
209
|
|
||||||
Derivatives not accounted for as hedges
|
$
|
67,056
|
|
$
|
838
|
|
$
|
796
|
|
|
$
|
86,346
|
|
$
|
695
|
|
$
|
1,682
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross derivatives
|
$
|
98,018
|
|
$
|
2,572
|
|
$
|
853
|
|
|
$
|
117,104
|
|
$
|
2,205
|
|
$
|
1,820
|
|
|
|
|
|
|
|
|
|
||||||||||||
Netting and credit adjustments
|
|
$
|
(546
|
)
|
$
|
(546
|
)
|
|
|
$
|
(959
|
)
|
$
|
(967
|
)
|
||||
Cash collateral adjustments
|
|
(1,286
|
)
|
(105
|
)
|
|
|
(1,042
|
)
|
(267
|
)
|
||||||||
Net derivatives recognized in Statement of Financial Position
|
|
$
|
740
|
|
$
|
202
|
|
|
|
$
|
205
|
|
$
|
586
|
|
||||
|
|
|
|
|
|
|
|
||||||||||||
Net accrued interest
|
|
$
|
182
|
|
$
|
1
|
|
|
|
$
|
205
|
|
$
|
1
|
|
||||
Securities held as collateral
|
|
(469
|
)
|
—
|
|
|
|
(235
|
)
|
—
|
|
||||||||
Net amount
|
|
$
|
452
|
|
$
|
203
|
|
|
|
$
|
174
|
|
$
|
587
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
2019
|
|
2018
|
||||||||||||||||||||||||||||
(In millions)
|
Revenues
|
Cost of sales
|
Interest Expense
|
SG&A
|
Other Income
|
|
Revenues
|
Cost of sales
|
Interest Expense
|
SG&A
|
Other Income
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Total amounts presented in
the consolidated Statement
of Earnings (Loss)
|
$
|
95,214
|
|
$
|
70,029
|
|
$
|
4,227
|
|
$
|
13,949
|
|
$
|
2,222
|
|
|
$
|
97,012
|
|
$
|
72,818
|
|
$
|
4,766
|
|
$
|
14,643
|
|
$
|
2,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Total effect of cash flow
hedges
|
$
|
5
|
|
$
|
(24
|
)
|
$
|
(37
|
)
|
$
|
(3
|
)
|
$
|
—
|
|
|
$
|
(53
|
)
|
$
|
(10
|
)
|
$
|
(39
|
)
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Hedged items
|
|
|
$
|
(1,276
|
)
|
|
|
|
|
|
$
|
617
|
|
|
|
||||||||||||||||
Derivatives designated as
hedging instruments
|
|
|
1,229
|
|
|
|
|
|
|
(724
|
)
|
|
|
||||||||||||||||||
Total effect of fair value
hedges
|
|
|
$
|
(48
|
)
|
|
|
|
|
|
$
|
(107
|
)
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Interest rate contracts
|
$
|
(24
|
)
|
$
|
—
|
|
$
|
(50
|
)
|
$
|
—
|
|
$
|
—
|
|
|
$
|
(72
|
)
|
$
|
—
|
|
$
|
(4
|
)
|
$
|
—
|
|
$
|
—
|
|
Currency exchange contracts
|
180
|
|
(35
|
)
|
—
|
|
(6
|
)
|
(59
|
)
|
|
(1,303
|
)
|
(520
|
)
|
—
|
|
—
|
|
(47
|
)
|
||||||||||
Other
|
(2
|
)
|
—
|
|
195
|
|
—
|
|
1
|
|
|
(1
|
)
|
—
|
|
(95
|
)
|
—
|
|
(10
|
)
|
||||||||||
Total effect of derivatives
not designated as hedges
|
$
|
154
|
|
$
|
(35
|
)
|
$
|
145
|
|
$
|
(6
|
)
|
$
|
(58
|
)
|
|
$
|
(1,375
|
)
|
$
|
(520
|
)
|
$
|
(99
|
)
|
$
|
—
|
|
$
|
(56
|
)
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Balance at January 1
|
$
|
2,192
|
|
$
|
2,103
|
|
$
|
1,743
|
|
Current-year provisions
|
713
|
|
945
|
|
929
|
|
|||
Expenditures
|
(715
|
)
|
(788
|
)
|
(708
|
)
|
|||
Other changes
|
(26
|
)
|
(69
|
)
|
139
|
|
|||
Balance at December 31
|
$
|
2,165
|
|
$
|
2,192
|
|
$
|
2,103
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
GE For the years ended December 31 (In millions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Increase (decrease) in employee benefit liabilities(a)
|
$
|
227
|
|
$
|
587
|
|
$
|
(68
|
)
|
Other gains on investing activities
|
(723
|
)
|
(378
|
)
|
(138
|
)
|
|||
Restructuring and other charges(b)
|
1,144
|
|
2,244
|
|
2,781
|
|
|||
Restructuring and other cash expenditures
|
(1,157
|
)
|
(1,474
|
)
|
(1,484
|
)
|
|||
Increase (decrease) in equipment project accruals
|
(314
|
)
|
(939
|
)
|
(212
|
)
|
|||
Baker Hughes Class B dividends received
|
282
|
|
494
|
|
251
|
|
|||
Other(c)
|
613
|
|
142
|
|
374
|
|
|||
All other operating activities
|
$
|
72
|
|
$
|
676
|
|
$
|
1,504
|
|
|
|
|
|
||||||
Derivative settlements (net)
|
$
|
(14
|
)
|
$
|
(947
|
)
|
$
|
(1,016
|
)
|
Investments in intangible assets (net)
|
(30
|
)
|
(496
|
)
|
(321
|
)
|
|||
Other investments (net)(d)
|
791
|
|
726
|
|
(1,404
|
)
|
|||
Sales of retained ownership interests in Wabtec
|
3,383
|
|
—
|
|
—
|
|
|||
Other(e)
|
(455
|
)
|
77
|
|
(6,698
|
)
|
|||
All other investing activities
|
$
|
3,675
|
|
$
|
(640
|
)
|
$
|
(9,439
|
)
|
|
|
|
|
||||||
Disposition of Baker Hughes noncontrolling interests
|
$
|
—
|
|
$
|
4,373
|
|
$
|
308
|
|
Acquisition of noncontrolling interests(f)
|
(28
|
)
|
(3,345
|
)
|
(135
|
)
|
|||
Other(g)
|
(284
|
)
|
79
|
|
117
|
|
|||
All other financing activities
|
$
|
(312
|
)
|
$
|
1,107
|
|
$
|
290
|
|
|
|
|
|
||||||
Open market purchases under share repurchase program
|
$
|
(10
|
)
|
$
|
(245
|
)
|
$
|
(3,506
|
)
|
Other purchases
|
(47
|
)
|
(23
|
)
|
(67
|
)
|
|||
Dispositions
|
84
|
|
250
|
|
1,021
|
|
|||
Net dispositions (purchases) of GE shares for treasury
|
$
|
29
|
|
$
|
(17
|
)
|
$
|
(2,550
|
)
|
(a)
|
Included non-cash adjustments for stock-based compensation expenses.
|
(b)
|
Excluded non-cash adjustments reflected as Depreciation and amortization of property, plant and equipment or Amortization of intangible assets in our consolidated Statement of Cash Flows.
|
(c)
|
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.
|
(d)
|
Included the provision of a promissory note to Baker Hughes in 2017 and subsequent principal collections in 2018 and 2019. See Note 2.
|
(e)
|
Included net activity related to settlements between our continuing operations and discontinued operations. In 2017, this was primarily driven by funding in order to complete the Baker Hughes acquisition.
|
(f)
|
Primarily included the acquisition of Alstom's interest in the grid technology, renewable energy, and global nuclear and French steam power joint ventures for $(3,105) million in the fourth quarter of 2018. See Note 16.
|
(g)
|
Primarily included debt tender expenditures of $(255) million incurred to purchase GE long-term debt in 2019.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
GE CAPITAL For the years ended December 31 (In millions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Cash collateral and settlements received (paid) on derivative contracts
|
$
|
1,263
|
|
$
|
(708
|
)
|
$
|
836
|
|
Increase (decrease) in other liabilities
|
(1,470
|
)
|
240
|
|
(798
|
)
|
|||
Other(a)
|
811
|
|
627
|
|
11,076
|
|
|||
All other operating activities
|
$
|
605
|
|
$
|
158
|
|
$
|
11,114
|
|
|
|
|
|
||||||
Increase in loans to customers
|
$
|
(15,022
|
)
|
$
|
(30,207
|
)
|
$
|
(45,251
|
)
|
Principal collections from customers - loans
|
18,083
|
|
37,237
|
|
47,471
|
|
|||
Investment in equipment for financing leases
|
(18
|
)
|
(306
|
)
|
(585
|
)
|
|||
Principal collections from customers - financing leases(b)
|
—
|
|
802
|
|
1,011
|
|
|||
Sales of financing receivables
|
345
|
|
2,458
|
|
251
|
|
|||
Net decrease (increase) in GE Capital financing receivables
|
$
|
3,389
|
|
$
|
9,986
|
|
$
|
2,897
|
|
|
|
|
|
||||||
Purchases of investment securities
|
$
|
(6,205
|
)
|
$
|
(5,775
|
)
|
$
|
(2,867
|
)
|
Dispositions and maturities of investment securities
|
4,589
|
|
8,309
|
|
10,001
|
|
|||
Decrease (increase) in other assets - investments
|
1,347
|
|
(4,516
|
)
|
(8,497
|
)
|
|||
Other(c)
|
2,886
|
|
2,464
|
|
4,375
|
|
|||
All other investing activities
|
$
|
2,617
|
|
$
|
482
|
|
$
|
3,013
|
|
|
|
|
|
||||||
Short-term (91 to 365 days)
|
$
|
(10,515
|
)
|
$
|
(14,251
|
)
|
$
|
(18,591
|
)
|
Long-term (longer than one year)
|
(991
|
)
|
(5,460
|
)
|
(2,054
|
)
|
|||
Principal payments - non-recourse, leveraged leases
|
(126
|
)
|
(125
|
)
|
(362
|
)
|
|||
Repayments and other reductions (maturities longer than 90 days)
|
$
|
(11,632
|
)
|
$
|
(19,836
|
)
|
$
|
(21,007
|
)
|
|
|
|
|
||||||
Redemption of investment contracts
|
$
|
(279
|
)
|
$
|
(268
|
)
|
$
|
(344
|
)
|
Settlements paid on derivative contracts
|
(864
|
)
|
(2,235
|
)
|
(212
|
)
|
|||
Other
|
324
|
|
95
|
|
276
|
|
|||
All other financing activities
|
$
|
(819
|
)
|
$
|
(2,408
|
)
|
$
|
(280
|
)
|
(a)
|
Primarily included non-cash adjustments for insurance-related charges recorded in 2019 and 2017.
|
(b)
|
In 2019, per ASU No. 2016-02, Leases, principal collections from customers on financing leases is classified as cash from operating activities.
|
(c)
|
Primarily included cash related to our current receivables and supply chain finance programs and net activity related to settlements between our continuing operations (primarily our treasury operations) and businesses in discontinued operations.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Combined GE and GE Capital cash from (used for) operating activities - continuing operations
|
$
|
6,495
|
|
$
|
2,282
|
|
$
|
13,853
|
|
GE current receivables sold to GE Capital
|
1,081
|
|
5
|
|
(4,435
|
)
|
|||
GE long-term receivables sold to GE Capital
|
468
|
|
1,079
|
|
(250
|
)
|
|||
Supply chain finance programs(a)
|
2,289
|
|
(18
|
)
|
302
|
|
|||
GE Capital common dividends to GE
|
—
|
|
—
|
|
(4,016
|
)
|
|||
Other reclassifications and eliminations
|
86
|
|
(138
|
)
|
387
|
|
|||
Consolidated cash from (used for) operating activities-continuing operations
|
$
|
10,419
|
|
$
|
3,210
|
|
$
|
5,840
|
|
|
|
|
|
||||||
Combined GE and GE Capital cash from (used for) investing activities - continuing operations
|
$
|
13,509
|
|
$
|
14,915
|
|
$
|
(3,473
|
)
|
GE current receivables sold to GE Capital
|
(1,677
|
)
|
(839
|
)
|
4,561
|
|
|||
GE long-term receivables sold to GE Capital
|
(468
|
)
|
(1,079
|
)
|
250
|
|
|||
Supply chain finance programs(a)
|
(2,289
|
)
|
18
|
|
(302
|
)
|
|||
GE Capital loans to GE
|
—
|
|
6,479
|
|
7,271
|
|
|||
Repayment of GE Capital loans by GE
|
(1,523
|
)
|
—
|
|
(1,329
|
)
|
|||
Capital contribution from GE to GE Capital
|
4,000
|
|
—
|
|
—
|
|
|||
Other reclassifications and eliminations
|
(868
|
)
|
(570
|
)
|
(251
|
)
|
|||
Consolidated cash from (used for) investing activities-continuing operations
|
$
|
10,684
|
|
$
|
18,925
|
|
$
|
6,728
|
|
|
|
|
|
||||||
Combined GE and GE Capital cash from (used for) financing activities - continuing operations
|
$
|
(14,665
|
)
|
$
|
(22,408
|
)
|
$
|
(21,738
|
)
|
GE current receivables sold to GE Capital
|
596
|
|
835
|
|
(127
|
)
|
|||
GE Capital common dividends to GE
|
—
|
|
—
|
|
4,016
|
|
|||
GE Capital loans to GE
|
—
|
|
(6,479
|
)
|
(7,271
|
)
|
|||
Repayment of GE Capital loans by GE
|
1,523
|
|
—
|
|
1,329
|
|
|||
Capital contribution from GE to GE Capital
|
(4,000
|
)
|
—
|
|
—
|
|
|||
Other reclassifications and eliminations
|
782
|
|
706
|
|
(136
|
)
|
|||
Consolidated cash from (used for) financing activities-continuing operations
|
$
|
(15,764
|
)
|
$
|
(27,345
|
)
|
$
|
(23,927
|
)
|
(a)
|
Represents the reduction of the GE liability associated with the funded participation in a supply chain finance program with GE Capital, primarily as a result of GE Capital's sale of the program platform to MUFG Union Bank, N.A. (MUFG) in 2019.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
Years ended December 31
|
||||||||||||||||||||||||||||
|
Total revenues(a)
|
|
Intersegment revenues(b)
|
|
External revenues
|
||||||||||||||||||||||||
REVENUES (In millions)
|
2019
|
|
2018
|
|
2017
|
|
|
2019
|
|
2018
|
|
2017
|
|
|
2019
|
|
2018
|
|
2017
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Power
|
$
|
18,625
|
|
$
|
22,150
|
|
$
|
29,426
|
|
|
$
|
357
|
|
$
|
152
|
|
$
|
326
|
|
|
$
|
18,267
|
|
$
|
21,997
|
|
$
|
29,100
|
|
Renewable Energy
|
15,337
|
|
14,288
|
|
14,321
|
|
|
139
|
|
186
|
|
242
|
|
|
15,198
|
|
14,102
|
|
14,080
|
|
|||||||||
Aviation
|
32,875
|
|
30,566
|
|
27,013
|
|
|
758
|
|
375
|
|
459
|
|
|
32,117
|
|
30,191
|
|
26,554
|
|
|||||||||
Healthcare
|
19,942
|
|
19,784
|
|
19,017
|
|
|
—
|
|
—
|
|
—
|
|
|
19,942
|
|
19,784
|
|
19,017
|
|
|||||||||
Total industrial segment revenues
|
86,778
|
|
86,789
|
|
89,776
|
|
|
1,254
|
|
714
|
|
1,027
|
|
|
85,524
|
|
86,075
|
|
88,749
|
|
|||||||||
Capital
|
8,741
|
|
9,551
|
|
9,070
|
|
|
971
|
|
1,384
|
|
1,558
|
|
|
7,770
|
|
8,167
|
|
7,512
|
|
|||||||||
Corporate items
and eliminations
|
(305
|
)
|
673
|
|
433
|
|
|
(2,225
|
)
|
(2,097
|
)
|
(2,585
|
)
|
|
1,920
|
|
2,770
|
|
3,018
|
|
|||||||||
Total
|
$
|
95,214
|
|
$
|
97,012
|
|
$
|
99,279
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
95,214
|
|
$
|
97,012
|
|
$
|
99,279
|
|
(a)
|
Revenues of GE businesses include income from sales of goods and services to customers.
|
(b)
|
Sales from one component to another generally are priced at equivalent commercial selling prices.
|
|
Years ended December 31
|
||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
(In millions)
|
Equipment
|
Services
|
Total
|
|
Equipment
|
Services
|
Total
|
|
Equipment
|
Services
|
Total
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Power
|
$
|
6,247
|
|
$
|
12,378
|
|
$
|
18,625
|
|
|
$
|
8,077
|
|
$
|
14,073
|
|
$
|
22,150
|
|
|
$
|
12,909
|
|
$
|
16,517
|
|
$
|
29,426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Renewable Energy
|
12,267
|
|
3,069
|
|
15,337
|
|
|
11,419
|
|
2,870
|
|
14,288
|
|
|
13,969
|
|
352
|
|
14,321
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Aviation
|
12,804
|
|
20,071
|
|
32,875
|
|
|
11,499
|
|
19,067
|
|
30,566
|
|
|
10,215
|
|
16,797
|
|
27,013
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Healthcare
|
11,585
|
|
8,357
|
|
19,942
|
|
|
11,422
|
|
8,363
|
|
19,784
|
|
|
10,771
|
|
8,246
|
|
19,017
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total industrial segment revenues
|
$
|
42,904
|
|
$
|
43,875
|
|
$
|
86,778
|
|
|
$
|
42,416
|
|
$
|
44,372
|
|
$
|
86,789
|
|
|
$
|
47,864
|
|
$
|
41,913
|
|
$
|
89,776
|
|
SEGMENT REVENUES
|
Years ended December 31
|
||||||||||
(In millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||
|
|
|
|
|
|
||||||
Gas Power
|
$
|
13,122
|
|
|
$
|
13,296
|
|
|
$17,100
|
||
Power Portfolio
|
5,503
|
|
|
8,853
|
|
|
12,326
|
|
|||
Power
|
$
|
18,625
|
|
|
$
|
22,150
|
|
|
$
|
29,426
|
|
|
|
|
|
|
|
||||||
Onshore Wind
|
$
|
10,421
|
|
|
$
|
8,220
|
|
|
$
|
8,055
|
|
Grid Solutions equipment and services
|
4,062
|
|
|
4,772
|
|
|
5,117
|
|
|||
Other
|
855
|
|
|
1,296
|
|
|
1,149
|
|
|||
Renewable Energy
|
$
|
15,337
|
|
|
$
|
14,288
|
|
|
$
|
14,321
|
|
|
|
|
|
|
|
||||||
Commercial
|
$
|
24,217
|
|
|
$
|
22,724
|
|
|
$
|
19,709
|
|
Military
|
4,389
|
|
|
4,103
|
|
|
3,991
|
|
|||
Systems & Other
|
4,269
|
|
|
3,740
|
|
|
3,314
|
|
|||
Aviation
|
$
|
32,875
|
|
|
$
|
30,566
|
|
|
$
|
27,013
|
|
|
|
|
|
|
|
||||||
Healthcare Systems
|
$
|
14,648
|
|
|
$
|
14,886
|
|
|
$
|
14,460
|
|
Life Sciences
|
5,294
|
|
|
4,898
|
|
|
4,557
|
|
|||
Healthcare
|
$
|
19,942
|
|
|
$
|
19,784
|
|
|
$
|
19,017
|
|
|
|
|
|
|
|
||||||
Total industrial segment revenues
|
$
|
86,778
|
|
|
$
|
86,789
|
|
|
$
|
89,776
|
|
Capital(a)
|
8,741
|
|
|
9,551
|
|
|
9,070
|
|
|||
Corporate items and eliminations
|
(305
|
)
|
|
673
|
|
|
433
|
|
|||
Consolidated revenues
|
$
|
95,214
|
|
|
$
|
97,012
|
|
|
$
|
99,279
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
PROFIT AND EARNINGS For the years ended December 31 (In millions)
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
||||||
Power
|
$
|
386
|
|
$
|
(808
|
)
|
$
|
1,894
|
|
Renewable Energy
|
(666
|
)
|
292
|
|
728
|
|
|||
Aviation
|
6,820
|
|
6,466
|
|
5,370
|
|
|||
Healthcare
|
3,896
|
|
3,698
|
|
3,488
|
|
|||
Total industrial segment profit
|
10,436
|
|
9,647
|
|
11,479
|
|
|||
Capital
|
(530
|
)
|
(489
|
)
|
(6,765
|
)
|
|||
Total segment profit
|
9,906
|
|
9,158
|
|
4,714
|
|
|||
Corporate items and eliminations
|
(2,212
|
)
|
(2,837
|
)
|
(3,798
|
)
|
|||
GE goodwill impairments
|
(1,486
|
)
|
(22,136
|
)
|
(1,165
|
)
|
|||
GE interest and other financial charges
|
(2,115
|
)
|
(2,415
|
)
|
(2,538
|
)
|
|||
GE non-operating benefit costs
|
(2,828
|
)
|
(2,740
|
)
|
(2,409
|
)
|
|||
GE provision for income taxes
|
(1,309
|
)
|
(467
|
)
|
(3,493
|
)
|
|||
Earnings (loss) from continuing operations attributable to GE common shareholders
|
(44
|
)
|
(21,438
|
)
|
(8,689
|
)
|
|||
Earnings (loss) from discontinued operations, net of taxes
|
(5,335
|
)
|
(1,363
|
)
|
(312
|
)
|
|||
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations
|
60
|
|
1
|
|
(81
|
)
|
|||
Earnings (loss) from discontinued operations, net of taxes and noncontrolling interests
|
(5,395
|
)
|
(1,364
|
)
|
(231
|
)
|
|||
Consolidated net earnings (loss) attributable to GE common shareholders
|
$
|
(5,439
|
)
|
$
|
(22,802
|
)
|
$
|
(8,920
|
)
|
|
Interest and other financial charges
|
|
Benefit (provision) for income taxes
|
||||||||||||||||
For the years ended December 31 (In millions)
|
2019
|
|
2018
|
|
2017
|
|
|
2019
|
|
2018
|
|
2017
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Capital
|
$
|
2,532
|
|
$
|
2,982
|
|
$
|
3,145
|
|
|
$
|
582
|
|
$
|
374
|
|
$
|
6,302
|
|
Corporate items and eliminations(a)
|
1,695
|
|
1,784
|
|
1,510
|
|
|
(1,309
|
)
|
(467
|
)
|
(3,493
|
)
|
||||||
Total
|
$
|
4,227
|
|
$
|
4,766
|
|
$
|
4,655
|
|
|
$
|
(726
|
)
|
$
|
(93
|
)
|
$
|
2,808
|
|
(a)
|
Included amounts for Power, Renewable Energy, Aviation and Healthcare, for which our measure of segment profit excludes interest and other financial charges and income taxes.
|
|
Assets
|
|
Property, plant and
equipment additions(a) |
|
Depreciation and amortization(b)
|
||||||||||||||||||||||||
|
At December 31
|
|
For the years ended December 31
|
|
For the years ended December 31
|
||||||||||||||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
|
|
2019
|
|
2018
|
|
2017
|
|
|
2019
|
|
2018
|
|
2017
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Power
|
$
|
26,731
|
|
$
|
27,389
|
|
$
|
55,827
|
|
|
$
|
277
|
|
$
|
358
|
|
$
|
1,018
|
|
|
$
|
880
|
|
$
|
1,307
|
|
$
|
1,228
|
|
Renewable Energy
|
15,935
|
|
16,400
|
|
18,466
|
|
|
455
|
|
303
|
|
677
|
|
|
425
|
|
474
|
|
382
|
|
|||||||||
Aviation
|
41,647
|
|
38,021
|
|
37,473
|
|
|
1,031
|
|
1,070
|
|
1,426
|
|
|
1,150
|
|
1,042
|
|
979
|
|
|||||||||
Healthcare
|
30,514
|
|
28,048
|
|
28,408
|
|
|
395
|
|
378
|
|
393
|
|
|
702
|
|
832
|
|
806
|
|
|||||||||
Capital(c)
|
117,546
|
|
119,329
|
|
150,805
|
|
|
3,830
|
|
4,569
|
|
3,680
|
|
|
2,083
|
|
2,163
|
|
2,342
|
|
|||||||||
Corporate items
and eliminations(d)
|
29,565
|
|
18,032
|
|
10,758
|
|
|
(175
|
)
|
(46
|
)
|
(64
|
)
|
|
355
|
|
763
|
|
456
|
|
|||||||||
Total continuing
|
$
|
261,939
|
|
$
|
247,219
|
|
$
|
301,737
|
|
|
$
|
5,813
|
|
$
|
6,632
|
|
$
|
7,130
|
|
|
$
|
5,595
|
|
$
|
6,582
|
|
$
|
6,193
|
|
(a)
|
Additions to property, plant and equipment include amounts relating to principal businesses purchased.
|
(b)
|
Included amortization expense related to intangible assets.
|
(c)
|
Included Capital deferred income taxes that are presented as assets for purposes of our balance sheet presentation.
|
(d)
|
Included GE deferred income taxes that are presented as assets for purposes of our balance sheet presentation.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
December 31 (In millions)
|
2019
|
|
2018
|
|
||
|
|
|
||||
U.S.
|
$
|
144,405
|
|
$
|
126,566
|
|
Non-U.S.
|
|
|
||||
Europe
|
70,565
|
|
70,007
|
|
||
Asia
|
22,089
|
|
22,355
|
|
||
Americas
|
13,435
|
|
12,871
|
|
||
Other Global
|
11,445
|
|
15,420
|
|
||
Total Non-U.S.
|
$
|
117,534
|
|
$
|
120,653
|
|
Total assets (Continuing Operations)
|
$
|
261,939
|
|
$
|
247,219
|
|
•
|
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 YEAR ENDED DECEMBER 31, 2019
|
||||||||||||||||||
|
||||||||||||||||||
(In millions)
|
Parent
Company
Guarantor
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Consolidated
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Sales of goods and services
|
$
|
28,078
|
|
$
|
—
|
|
$
|
—
|
|
$
|
154,927
|
|
$
|
(95,518
|
)
|
$
|
87,487
|
|
GE Capital revenues from services
|
—
|
|
964
|
|
64
|
|
9,949
|
|
(3,250
|
)
|
7,728
|
|
||||||
Total revenues
|
28,078
|
|
964
|
|
64
|
|
164,876
|
|
(98,768
|
)
|
95,214
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Interest and other financial charges
|
1,612
|
|
980
|
|
1,405
|
|
1,975
|
|
(1,745
|
)
|
4,227
|
|
||||||
Other costs and expenses
|
32,563
|
|
1
|
|
—
|
|
166,371
|
|
(106,876
|
)
|
92,059
|
|
||||||
Total costs and expenses
|
34,175
|
|
981
|
|
1,406
|
|
168,346
|
|
(108,622
|
)
|
96,287
|
|
||||||
Other income
|
(3,853
|
)
|
—
|
|
—
|
|
30,453
|
|
(24,378
|
)
|
2,222
|
|
||||||
Equity in earnings (loss) of affiliates
|
5,923
|
|
—
|
|
1,290
|
|
75,445
|
|
(82,658
|
)
|
—
|
|
||||||
Earnings (loss) from continuing
operations before income taxes
|
(4,028
|
)
|
(17
|
)
|
(52
|
)
|
102,427
|
|
(97,182
|
)
|
1,149
|
|
||||||
Benefit (provision) for income taxes
|
(1,143
|
)
|
1
|
|
—
|
|
(228
|
)
|
643
|
|
(726
|
)
|
||||||
Earnings (loss) from continuing operations
|
(5,170
|
)
|
(16
|
)
|
(52
|
)
|
102,200
|
|
(96,539
|
)
|
423
|
|
||||||
Earnings (loss) from discontinued
operations, net of taxes
|
192
|
|
—
|
|
59
|
|
—
|
|
(5,585
|
)
|
(5,335
|
)
|
||||||
Net earnings (loss)
|
(4,979
|
)
|
(16
|
)
|
7
|
|
102,200
|
|
(102,124
|
)
|
(4,912
|
)
|
||||||
Less net earnings (loss) attributable to
noncontrolling interests
|
—
|
|
—
|
|
—
|
|
7
|
|
59
|
|
66
|
|
||||||
Net earnings (loss) attributable to
the Company
|
(4,979
|
)
|
(16
|
)
|
7
|
|
102,192
|
|
(102,184
|
)
|
(4,979
|
)
|
||||||
Other comprehensive income
|
2,681
|
|
—
|
|
(1,022
|
)
|
2,280
|
|
(1,258
|
)
|
2,681
|
|
||||||
Comprehensive income (loss) attributable to the Company
|
$
|
(2,297
|
)
|
$
|
(16
|
)
|
$
|
(1,015
|
)
|
$
|
104,472
|
|
$
|
(103,441
|
)
|
$
|
(2,297
|
)
|
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2018
|
||||||||||||||||||
|
||||||||||||||||||
(In millions)
|
Parent
Company
Guarantor
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Consolidated
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Sales of goods and services
|
$
|
34,972
|
|
$
|
—
|
|
$
|
—
|
|
$
|
164,691
|
|
$
|
(110,723
|
)
|
$
|
88,940
|
|
GE Capital revenues from services
|
—
|
|
917
|
|
1,038
|
|
9,531
|
|
(3,414
|
)
|
8,072
|
|
||||||
Total revenues
|
34,972
|
|
917
|
|
1,038
|
|
174,222
|
|
(114,136
|
)
|
97,012
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Interest and other financial charges
|
1,728
|
|
911
|
|
2,560
|
|
2,459
|
|
(2,893
|
)
|
4,766
|
|
||||||
Other costs and expenses
|
47,471
|
|
—
|
|
1
|
|
186,262
|
|
(118,180
|
)
|
115,554
|
|
||||||
Total costs and expenses
|
49,199
|
|
911
|
|
2,561
|
|
188,721
|
|
(121,073
|
)
|
120,320
|
|
||||||
Other income
|
3,910
|
|
—
|
|
—
|
|
29,268
|
|
(30,857
|
)
|
2,321
|
|
||||||
Equity in earnings (loss) of affiliates
|
(11,404
|
)
|
—
|
|
1,554
|
|
240,036
|
|
(230,186
|
)
|
—
|
|
||||||
Earnings (loss) from continuing
operations before income taxes
|
(21,721
|
)
|
6
|
|
31
|
|
254,803
|
|
(254,106
|
)
|
(20,987
|
)
|
||||||
Benefit (provision) for income taxes
|
1,092
|
|
5
|
|
—
|
|
(2,381
|
)
|
1,191
|
|
(93
|
)
|
||||||
Earnings (loss) from continuing operations
|
(20,629
|
)
|
11
|
|
31
|
|
252,422
|
|
(252,915
|
)
|
(21,080
|
)
|
||||||
Earnings (loss) from discontinued
operations, net of taxes
|
(1,726
|
)
|
—
|
|
(39
|
)
|
—
|
|
401
|
|
(1,363
|
)
|
||||||
Net earnings (loss)
|
(22,355
|
)
|
11
|
|
(8
|
)
|
252,422
|
|
(252,514
|
)
|
(22,443
|
)
|
||||||
Less net earnings (loss) attributable to
noncontrolling interests
|
—
|
|
—
|
|
—
|
|
(204
|
)
|
116
|
|
(89
|
)
|
||||||
Net earnings (loss) attributable to
the Company
|
(22,355
|
)
|
11
|
|
(8
|
)
|
252,627
|
|
(252,629
|
)
|
(22,355
|
)
|
||||||
Other comprehensive income
|
(10
|
)
|
—
|
|
(82
|
)
|
(2,840
|
)
|
2,922
|
|
(10
|
)
|
||||||
Comprehensive income (loss) attributable to the Company
|
$
|
(22,364
|
)
|
$
|
11
|
|
$
|
(90
|
)
|
$
|
249,786
|
|
$
|
(249,707
|
)
|
$
|
(22,364
|
)
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2017
|
||||||||||||||||||
|
||||||||||||||||||
(In millions)
|
Parent
Company
Guarantor
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Consolidated
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Sales of goods and services
|
$
|
35,551
|
|
$
|
—
|
|
$
|
—
|
|
$
|
161,172
|
|
$
|
(104,782
|
)
|
$
|
91,942
|
|
GE Capital revenues from services
|
—
|
|
703
|
|
800
|
|
9,888
|
|
(4,053
|
)
|
7,337
|
|
||||||
Total revenues
|
35,551
|
|
703
|
|
800
|
|
171,060
|
|
(108,835
|
)
|
99,279
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Interest and other financial charges
|
1,644
|
|
652
|
|
2,006
|
|
3,343
|
|
(2,990
|
)
|
4,655
|
|
||||||
Other costs and expenses
|
38,765
|
|
—
|
|
18
|
|
177,223
|
|
(107,954
|
)
|
108,052
|
|
||||||
Total costs and expenses
|
40,409
|
|
653
|
|
2,023
|
|
180,566
|
|
(110,943
|
)
|
112,707
|
|
||||||
Other income
|
(959
|
)
|
—
|
|
—
|
|
75,291
|
|
(72,249
|
)
|
2,083
|
|
||||||
Equity in earnings (loss) of affiliates
|
553
|
|
—
|
|
1,938
|
|
109,521
|
|
(112,012
|
)
|
—
|
|
||||||
Earnings (loss) from continuing
operations before income taxes
|
(5,263
|
)
|
50
|
|
714
|
|
175,307
|
|
(182,152
|
)
|
(11,345
|
)
|
||||||
Benefit (provision) for income taxes
|
(2,896
|
)
|
(5
|
)
|
115
|
|
5,877
|
|
(282
|
)
|
2,808
|
|
||||||
Earnings (loss) from continuing operations
|
(8,159
|
)
|
45
|
|
829
|
|
181,184
|
|
(182,435
|
)
|
(8,536
|
)
|
||||||
Earnings (loss) from discontinued
operations, net of taxes
|
(325
|
)
|
—
|
|
41
|
|
4
|
|
(32
|
)
|
(312
|
)
|
||||||
Net earnings (loss)
|
(8,484
|
)
|
45
|
|
870
|
|
181,187
|
|
(182,467
|
)
|
(8,849
|
)
|
||||||
Less net earnings (loss) attributable to
noncontrolling interests
|
—
|
|
—
|
|
—
|
|
(137
|
)
|
(228
|
)
|
(365
|
)
|
||||||
Net earnings (loss) attributable to
the Company
|
(8,484
|
)
|
45
|
|
870
|
|
181,324
|
|
(182,239
|
)
|
(8,484
|
)
|
||||||
Other comprehensive income
|
4,184
|
|
—
|
|
567
|
|
(7,552
|
)
|
6,985
|
|
4,184
|
|
||||||
Comprehensive income (loss) attributable to the Company
|
$
|
(4,300
|
)
|
$
|
45
|
|
$
|
1,436
|
|
$
|
173,773
|
|
$
|
(175,254
|
)
|
$
|
(4,300
|
)
|
CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION
|
||||||||||||||||||
DECEMBER 31, 2019
|
||||||||||||||||||
|
||||||||||||||||||
(In millions)
|
Parent
Company
Guarantor
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Consolidated
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Cash, cash equivalents and restricted cash
|
$
|
10,591
|
|
$
|
—
|
|
$
|
—
|
|
$
|
26,438
|
|
$
|
(636
|
)
|
$
|
36,394
|
|
Receivables - net
|
47,170
|
|
17,726
|
|
230
|
|
61,026
|
|
(99,104
|
)
|
27,047
|
|
||||||
Investment in subsidiaries
|
147,397
|
|
—
|
|
40,408
|
|
421,613
|
|
(609,418
|
)
|
—
|
|
||||||
All other assets
|
28,377
|
|
236
|
|
—
|
|
291,995
|
|
(118,000
|
)
|
202,607
|
|
||||||
Total assets
|
$
|
233,535
|
|
$
|
17,961
|
|
$
|
40,638
|
|
$
|
801,071
|
|
$
|
(827,158
|
)
|
$
|
266,048
|
|
|
|
|
|
|
|
|
||||||||||||
Short-term borrowings
|
$
|
135,172
|
|
$
|
—
|
|
$
|
2,981
|
|
$
|
9,712
|
|
$
|
(125,792
|
)
|
$
|
22,072
|
|
Long-term and non-recourse borrowings
|
40,660
|
|
16,771
|
|
24,417
|
|
34,262
|
|
(47,301
|
)
|
68,809
|
|
||||||
All other liabilities
|
66,808
|
|
161
|
|
70
|
|
146,972
|
|
(68,705
|
)
|
145,306
|
|
||||||
Total liabilities
|
242,640
|
|
16,932
|
|
27,468
|
|
190,946
|
|
(241,799
|
)
|
236,187
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Total liabilities and equity
|
$
|
233,535
|
|
$
|
17,961
|
|
$
|
40,638
|
|
$
|
801,071
|
|
$
|
(827,158
|
)
|
$
|
266,048
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION
|
||||||||||||||||||
DECEMBER 31, 2018
|
||||||||||||||||||
|
||||||||||||||||||
(In millions)
|
Parent
Company
Guarantor
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Consolidated
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Cash, cash equivalents and restricted cash
|
$
|
9,561
|
|
$
|
—
|
|
$
|
—
|
|
$
|
25,975
|
|
$
|
(4,412
|
)
|
$
|
31,124
|
|
Receivables - net
|
30,466
|
|
17,467
|
|
2,792
|
|
69,268
|
|
(90,504
|
)
|
29,488
|
|
||||||
Investment in subsidiaries
|
176,239
|
|
—
|
|
45,832
|
|
733,535
|
|
(955,605
|
)
|
—
|
|
||||||
All other assets
|
29,615
|
|
12
|
|
—
|
|
359,063
|
|
(138,230
|
)
|
250,460
|
|
||||||
Total assets
|
$
|
245,881
|
|
$
|
17,479
|
|
$
|
48,623
|
|
$
|
1,187,841
|
|
$
|
(1,188,751
|
)
|
$
|
311,072
|
|
|
|
|
|
|
|
|
||||||||||||
Short-term borrowings
|
$
|
150,426
|
|
$
|
—
|
|
$
|
9,854
|
|
$
|
9,649
|
|
$
|
(157,153
|
)
|
$
|
12,776
|
|
Long-term and non-recourse borrowings
|
59,800
|
|
16,115
|
|
24,341
|
|
41,066
|
|
(50,498
|
)
|
90,824
|
|
||||||
All other liabilities
|
43,872
|
|
336
|
|
245
|
|
153,160
|
|
(41,622
|
)
|
155,992
|
|
||||||
Total liabilities
|
254,098
|
|
16,452
|
|
34,439
|
|
203,875
|
|
(249,273
|
)
|
259,591
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Total liabilities and equity
|
$
|
245,881
|
|
$
|
17,479
|
|
$
|
48,623
|
|
$
|
1,187,841
|
|
$
|
(1,188,751
|
)
|
$
|
311,072
|
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
|
||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2019
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||
(In millions)
|
Parent
Company
Guarantor
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Consolidated
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Cash from (used for) operating activities(a)
|
$
|
5,526
|
|
$
|
137
|
|
$
|
(1,685
|
)
|
$
|
33,515
|
|
$
|
(28,721
|
)
|
$
|
8,772
|
|
|
|
|
|
|
|
|
||||||||||||
Cash from (used for) investing activities
|
32,210
|
|
(137
|
)
|
6,223
|
|
400,190
|
|
(429,548
|
)
|
8,939
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Cash from (used for) financing activities
|
(36,706
|
)
|
—
|
|
(4,538
|
)
|
(436,933
|
)
|
462,045
|
|
(16,133
|
)
|
||||||
Effect of currency exchange rate changes
on cash, cash equivalents and restricted cash
|
—
|
|
—
|
|
—
|
|
(50
|
)
|
—
|
|
(50
|
)
|
||||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
1,030
|
|
—
|
|
—
|
|
(3,277
|
)
|
3,776
|
|
1,529
|
|
||||||
Cash, cash equivalents and restricted cash at beginning of year
|
9,561
|
|
—
|
|
—
|
|
30,399
|
|
(4,412
|
)
|
35,548
|
|
||||||
Cash, cash equivalents and restricted cash at end of year
|
10,591
|
|
—
|
|
—
|
|
27,121
|
|
(636
|
)
|
37,077
|
|
||||||
Less cash, cash equivalents and restricted cash of discontinued operations at end of year
|
—
|
|
—
|
|
—
|
|
638
|
|
—
|
|
638
|
|
||||||
Cash, cash equivalents and restricted cash of continuing operations at end of year
|
$
|
10,591
|
|
$
|
—
|
|
$
|
—
|
|
$
|
26,484
|
|
$
|
(636
|
)
|
$
|
36,439
|
|
(a)
|
Parent Company Guarantor cash flows included cash from (used for) operating activities of discontinued operations of $(1,282) million.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
|
||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2018
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||
(In millions)
|
Parent
Company
Guarantor
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Consolidated
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Cash from (used for) operating activities(a)
|
$
|
42,950
|
|
$
|
(387
|
)
|
$
|
34,361
|
|
$
|
328,029
|
|
$
|
(399,976
|
)
|
$
|
4,978
|
|
|
|
|
|
|
|
|
||||||||||||
Cash from (used for) investing activities
|
1,292
|
|
457
|
|
27,415
|
|
(297,621
|
)
|
286,736
|
|
18,280
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Cash from (used for) financing activities
|
(38,154
|
)
|
(70
|
)
|
(61,779
|
)
|
(48,782
|
)
|
116,979
|
|
(31,807
|
)
|
||||||
Effect of currency exchange rate changes
on cash, cash equivalents and restricted cash
|
—
|
|
—
|
|
—
|
|
(628
|
)
|
—
|
|
(628
|
)
|
||||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
6,089
|
|
—
|
|
(3
|
)
|
(19,002
|
)
|
3,739
|
|
(9,176
|
)
|
||||||
Cash, cash equivalents and restricted cash at beginning of year
|
3,472
|
|
—
|
|
3
|
|
49,400
|
|
(8,151
|
)
|
44,724
|
|
||||||
Cash, cash equivalents and restricted cash at end of year
|
9,561
|
|
—
|
|
—
|
|
30,399
|
|
(4,412
|
)
|
35,548
|
|
||||||
Less cash, cash equivalents and restricted cash of discontinued operations at end of year
|
—
|
|
—
|
|
—
|
|
4,424
|
|
—
|
|
4,424
|
|
||||||
Cash, cash equivalents and restricted cash of continuing operations at end of year
|
$
|
9,561
|
|
$
|
—
|
|
$
|
—
|
|
$
|
25,975
|
|
$
|
(4,412
|
)
|
$
|
31,124
|
|
(a)
|
Parent Company Guarantor cash flows included cash from (used for) operating activities of discontinued operations of $1,991 million.
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
|
||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2017
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||
(In millions)
|
Parent
Company
Guarantor
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Consolidated
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Cash from (used for) operating activities(a)
|
$
|
(29,441
|
)
|
$
|
52
|
|
$
|
4,305
|
|
$
|
149,385
|
|
$
|
(117,747
|
)
|
$
|
6,554
|
|
|
|
|
|
|
|
|
||||||||||||
Cash from (used for) investing activities
|
(4,432
|
)
|
(52
|
)
|
(1,871
|
)
|
(222,298
|
)
|
234,032
|
|
5,379
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Cash from (used for) financing activities
|
34,616
|
|
—
|
|
(2,473
|
)
|
70,782
|
|
(121,410
|
)
|
(18,484
|
)
|
||||||
Effect of currency exchange rate changes
on cash, cash equivalents and restricted cash
|
—
|
|
—
|
|
—
|
|
891
|
|
—
|
|
891
|
|
||||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
743
|
|
—
|
|
(39
|
)
|
(1,239
|
)
|
(5,125
|
)
|
(5,659
|
)
|
||||||
Cash, cash equivalents and restricted cash at beginning of year
|
2,729
|
|
—
|
|
41
|
|
50,640
|
|
(3,026
|
)
|
50,384
|
|
||||||
Cash, cash equivalents and restricted cash at end of year
|
3,472
|
|
—
|
|
3
|
|
49,400
|
|
(8,151
|
)
|
44,724
|
|
||||||
Less cash, cash equivalents and restricted cash of discontinued operations at end of year
|
—
|
|
—
|
|
—
|
|
7,901
|
|
—
|
|
7,901
|
|
||||||
Cash, cash equivalents and restricted cash of continuing operations at end of year
|
$
|
3,472
|
|
$
|
—
|
|
$
|
3
|
|
$
|
41,499
|
|
$
|
(8,151
|
)
|
$
|
36,823
|
|
(a)
|
Parent Company Guarantor cash flows included cash from (used for) operating activities of discontinued operations of $239 million.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
From September 16 to December 31, 2019 (In millions)
|
|
||
|
|
||
Revenues
|
$
|
7,751
|
|
Gross Profit
|
1,558
|
|
|
Net income (loss)
|
120
|
|
|
Net income (loss) attributable to the entity
|
60
|
|
December 31, 2019 (In millions)
|
|
||
|
|
||
Current
|
$
|
15,222
|
|
Noncurrent
|
38,147
|
|
|
Total assets
|
$
|
53,369
|
|
|
|
||
Current
|
$
|
10,014
|
|
Noncurrent
|
8,857
|
|
|
Total liabilities
|
$
|
18,871
|
|
Noncontrolling interests
|
$
|
12,570
|
|
|
First quarter
|
|
Second quarter
|
|
Third quarter
|
|
Fourth quarter
|
||||||||||||||||||||
(In millions; per-share amounts in dollars)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Consolidated operations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Earnings (loss) from continuing operations
|
$
|
983
|
|
$
|
446
|
|
|
$
|
(115
|
)
|
$
|
791
|
|
|
$
|
(1,290
|
)
|
$
|
(23,014
|
)
|
|
$
|
845
|
|
$
|
697
|
|
Earnings (loss) from discontinued operations
|
2,663
|
|
(1,559
|
)
|
|
219
|
|
(122
|
)
|
|
(8,093
|
)
|
155
|
|
|
(123
|
)
|
163
|
|
||||||||
Net earnings (loss)
|
3,645
|
|
(1,113
|
)
|
|
104
|
|
669
|
|
|
(9,383
|
)
|
(22,859
|
)
|
|
721
|
|
860
|
|
||||||||
Less net earnings (loss) attributable to
noncontrolling interests
|
57
|
|
34
|
|
|
(23
|
)
|
(132
|
)
|
|
40
|
|
(90
|
)
|
|
(7
|
)
|
99
|
|
||||||||
Net earnings (loss) attributable to
the Company
|
$
|
3,588
|
|
$
|
(1,147
|
)
|
|
$
|
127
|
|
$
|
800
|
|
|
$
|
(9,423
|
)
|
$
|
(22,769
|
)
|
|
$
|
728
|
|
$
|
761
|
|
Per-share amounts – earnings (loss) from
continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Diluted earnings (loss) per share
|
$
|
0.10
|
|
$
|
0.03
|
|
|
$
|
(0.03
|
)
|
$
|
0.08
|
|
|
$
|
(0.15
|
)
|
$
|
(2.64
|
)
|
|
$
|
0.07
|
|
$
|
0.06
|
|
Basic earnings (loss) per share
|
0.10
|
|
0.03
|
|
|
(0.03
|
)
|
0.08
|
|
|
(0.15
|
)
|
(2.64
|
)
|
|
0.08
|
|
0.06
|
|
||||||||
Per-share amounts – earnings (loss)
from discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Diluted earnings (loss) per share
|
0.30
|
|
(0.17
|
)
|
|
0.03
|
|
(0.01
|
)
|
|
(0.93
|
)
|
0.02
|
|
|
(0.02
|
)
|
0.01
|
|
||||||||
Basic earnings (loss) per share
|
0.30
|
|
(0.17
|
)
|
|
0.03
|
|
(0.01
|
)
|
|
(0.93
|
)
|
0.02
|
|
|
(0.01
|
)
|
0.01
|
|
||||||||
Per-share amounts – net earnings (loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Diluted earnings (loss) per share
|
0.40
|
|
(0.14
|
)
|
|
(0.01
|
)
|
0.07
|
|
|
(1.08
|
)
|
(2.62
|
)
|
|
0.06
|
|
0.07
|
|
||||||||
Basic earnings (loss) per share
|
0.41
|
|
(0.14
|
)
|
|
(0.01
|
)
|
0.07
|
|
|
(1.08
|
)
|
(2.62
|
)
|
|
0.06
|
|
0.07
|
|
||||||||
Dividends declared
|
0.01
|
|
0.12
|
|
|
0.01
|
|
0.12
|
|
|
0.01
|
|
0.12
|
|
|
0.01
|
|
0.01
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Selected data
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
GE
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sales of goods and services
|
$
|
20,324
|
|
$
|
21,138
|
|
|
$
|
21,416
|
|
$
|
22,190
|
|
|
$
|
21,519
|
|
$
|
21,273
|
|
|
$
|
24,460
|
|
$
|
24,437
|
|
Gross profit from sales
|
4,494
|
|
4,879
|
|
|
4,500
|
|
5,100
|
|
|
4,660
|
|
3,924
|
|
|
5,780
|
|
4,261
|
|
||||||||
GE Capital
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total revenues
|
2,227
|
|
2,173
|
|
|
2,321
|
|
2,429
|
|
|
2,097
|
|
2,473
|
|
|
2,096
|
|
2,476
|
|
||||||||
Earnings (loss) from continuing operations
attributable to the Company
|
175
|
|
(179
|
)
|
|
99
|
|
(22
|
)
|
|
(603
|
)
|
58
|
|
|
259
|
|
101
|
|
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 plan to exit our equity ownership position in Baker Hughes, the timing of closing for those transactions and the expected proceeds and benefits to GE;
|
•
|
our de-leveraging and capital allocation plans, including with respect to actions to reduce our indebtedness, the timing and amount of GE dividends, organic investments, and other priorities;
|
•
|
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;
|
•
|
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;
|
•
|
GE Capital's capital and liquidity needs, including in connection with GE Capital’s run-off insurance operations and discontinued operations; the amount and timing of required capital contributions to the insurance operations and strategic actions that we may pursue; the impact of conditions in the financial and credit markets on GE Capital's ability to sell financial assets; the availability and cost of funding; and GE Capital's exposure to particular counterparties and markets;
|
•
|
global economic trends, competition and geopolitical risks, including changes in the rates of investment or economic growth in key markets we serve, or an escalation of trade tensions such as those between the U.S. and China;
|
•
|
changes in macroeconomic and market conditions, particularly interest rates as it relates to our pension and run-off insurance liabilities, as well as the value of stocks and other financial assets (including our equity ownership positions in Baker Hughes), oil and other commodity prices and exchange rates;
|
•
|
market developments or customer actions that may affect levels of demand and the financial performance of the major industries and customers we serve, such as secular, cyclical and competitive pressures in our Power business, pricing and other pressures in the renewable energy market, levels of demand for air travel and other customer dynamics such as early aircraft retirements, conditions in key geographic markets and other shifts in the competitive landscape for our products and services;
|
•
|
the length and severity of the recent coronavirus outbreak, including its impacts across our businesses on demand, operations in China and our global supply chains;
|
•
|
operational execution by our businesses, including our ability to improve the operations and execution of our Power and Renewable Energy businesses, and the continued strength of our Aviation business;
|
•
|
changes in law, regulation or policy that may affect our businesses, such as trade policy and tariffs, regulation related to climate change and the effects of U.S. tax reform and other tax law changes;
|
•
|
our decisions about investments in new products, services and platforms, and our ability to launch new products in a cost-effective manner;
|
•
|
our ability to increase margins through implementation of operational changes, restructuring and other cost reduction measures;
|
•
|
the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of Alstom, SEC and other investigative and legal proceedings;
|
•
|
the impact of actual or potential failures of our products or third-party products with which our products are integrated, such as the fleet grounding of the Boeing 737 MAX and the timing of its return to service, and related reputational effects;
|
•
|
the impact of potential information technology, cybersecurity or data security breaches; and
|
•
|
the other factors that are described in "Risk Factors" in this form 10-K report.
|
OTHER INFORMATION
|
|
|
|
|
|
|
|
|
Date assumed
|
|
|
|
|
|
|
Executive
|
Name
|
|
Position
|
|
Age
|
|
Officer Position
|
|
|
|
|
|
|
|
H. Lawrence Culp, Jr.
|
|
Chairman of the Board & Chief Executive Officer
|
|
56
|
|
October 2018
|
Jamie S. Miller
|
|
Senior Vice President & Chief Financial Officer
|
|
51
|
|
November 2017
|
Michael J. Holston
|
|
Senior Vice President, General Counsel & Secretary
|
|
57
|
|
April 2018
|
David L. Joyce
|
|
Vice Chairman of General Electric Company;
|
|
63
|
|
September 2016
|
|
|
President & CEO, GE Aviation
|
|
|
|
|
L. Kevin Cox
|
|
Senior Vice President, Chief Human Resources Officer
|
|
56
|
|
February 2019
|
Kieran P. Murphy
|
|
Senior Vice President of General Electric Company;
|
|
56
|
|
September 2018
|
|
|
President & CEO, GE Healthcare
|
|
|
|
|
Jérôme X. Pécresse
|
|
Senior Vice President of General Electric Company;
|
|
52
|
|
September 2018
|
|
|
President & CEO, GE Renewable Energy
|
|
|
|
|
Russell Stokes
|
|
Senior Vice President of General Electric Company;
|
|
48
|
|
September 2018
|
|
|
President & CEO, GE Power Portfolio
|
|
|
|
|
Scott L. Strazik
|
|
Senior Vice President of General Electric Company;
|
|
41
|
|
January 2019
|
|
|
CEO, GE Gas Power
|
|
|
|
|
Thomas S. Timko
|
|
Vice President, Controller & Chief Accounting Officer
|
|
51
|
|
September 2018
|
OTHER INFORMATION
|
|
|
Exhibit
Number |
|
Description
|
|
2(a)
|
|
||
2(b)
|
|
||
3(i)
|
|
The Restated Certificate of Incorporation of General Electric Company (Incorporated by reference to Exhibit 3(i) to GE’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013), as amended by the Certificate of Amendment, dated December 2, 2015 (Incorporated by reference to Exhibit 3.1 to GE’s Current Report on Form 8-K, dated December 3, 2015), as further amended by the Certificate of Amendment, dated January 19, 2016 (Incorporated by reference to Exhibit 3.1 to GE’s Current Report on Form 8-K, dated January 20, 2016), as further amended by the Certificate of Change of General Electric Company (Incorporated by reference to Exhibit 3(1) to GE’s Current Report on Form 8-K, dated September 1, 2016, as further amended by the Certificate of Amendment, dated May 13, 2019 (Incorporated by reference to Exhibit 3.1 to GE’s Current Report on Form 8-K, dated May 13, 2019), and as further amended by the Certificate of Change of General Electric Company (Incorporated by reference to Exhibit 3.1 to GE’s Current Report on Form 8-K, dated December 9, 2019) (in each case, under Commission file number 001-00035).
|
|
3(ii)
|
|
||
4(a)
|
|
||
4(b)
|
|
||
4(c)
|
|
||
4(d)
|
|
||
4(e)
|
|
||
4(f)
|
|
||
4(g)
|
|
OTHER INFORMATION
|
|
|
4(h)
|
|
||
4(i)
|
|
||
4(j)
|
|
||
4(k)
|
|
||
4(l)
|
|
||
(10)
|
|
Except for 10(aa) and (bb) below, all of the following exhibits consist of Executive Compensation Plans or Arrangements:
|
|
|
|
(a)
|
General Electric Incentive Compensation Plan, as amended effective July 1, 1991 (Incorporated by reference to Exhibit 10(a) to GE’s Annual Report on Form 10-K (Commission file number 001-00035) for the fiscal year ended December 31, 1991).
|
|
|
(b)
|
|
|
|
(c)
|
General Electric Supplemental Life Insurance Program, as amended February 8, 1991 (Incorporated by reference to Exhibit 10(i) to GE’s Annual Report on Form 10-K (Commission file number 001-00035) for the fiscal year ended December 31, 1990).
|
|
|
(d)
|
|
|
|
(e)
|
|
|
|
(f)
|
|
|
|
(g)
|
|
|
|
(h)
|
|
|
|
(i)
|
|
|
|
(j)
|
|
|
|
(k)
|
|
|
|
(l)
|
|
|
|
(m)
|
|
|
|
(n)
|
|
|
|
(o)
|
|
|
|
(p)
|
|
|
|
(q)
|
OTHER INFORMATION
|
|
|
OTHER INFORMATION
|
|
|
(a)
|
Incorporated by reference to “Compensation” in the 2020 Proxy Statement.
|
(b)
|
Incorporated by reference to “Stock Ownership Information” in the 2020 Proxy Statement.
|
(c)
|
Incorporated by reference to “Related Person Transactions” and “How We Assess Director Independence” in the 2020 Proxy Statement.
|
(d)
|
Incorporated by reference to “Independent Auditor Information” in the 2020 Proxy Statement.
|
By
|
/s/ Jamie S. Miller
|
|
Jamie S. Miller
Senior Vice President and
Chief Financial Officer
(Principal Financial Officer)
|
|
Signer
|
|
Title
|
|
Date
|
|
|
|
|
|
|
|
/s/ Jamie S. Miller
|
|
Principal Financial Officer
|
|
February 24, 2020
|
|
Jamie S. Miller
Senior Vice President and
Chief Financial Officer
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Thomas S. Timko
|
|
Principal Accounting Officer
|
|
February 24, 2020
|
|
Thomas S. Timko
Vice President, Chief Accounting Officer and Controller
|
|
|
|
|
|
|
|
|
|
|
|
/s/ H. Lawrence Culp, Jr.
|
|
Principal Executive Officer
|
|
February 24, 2020
|
|
H. Lawrence Culp, Jr.*
Chairman of the Board of Directors
|
|
|
|
|
|
|
|
|
|
|
|
Sébastien M. Bazin*
|
|
Director
|
|
|
|
Francisco D'Souza*
|
|
Director
|
|
|
|
Edward P. Garden*
|
|
Director
|
|
|
|
Thomas W. Horton*
|
|
Director
|
|
|
|
Risa Lavizzo-Mourey*
|
|
Director
|
|
|
|
Catherine A. Lesjak*
|
|
Director
|
|
|
|
Paula Rosput Reynolds*
|
|
Director
|
|
|
|
Leslie F. Seidman*
|
|
Director
|
|
|
|
James S. Tisch*
|
|
Director
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A majority of the Board of Directors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*By
|
/s/ Christoph A. Pereira
|
|
|
|
|
|
Christoph A. Pereira
Attorney-in-fact |
|
|
|
|
|
February 24, 2020
|
|
|
|
|
|
Jennifer B. VanBelle
Vice President and GE Treasurer
General Electric Company
901 Main Avenue
Norwalk, CT 06856
|
/s/ Jennifer B. VanBelle
|
Jennifer B. VanBelle
|
Vice President and GE Treasurer
|
•
|
100% of the principal amount of the notes to be redeemed; and
|
•
|
the sum of the present values of the Remaining Scheduled Payments (as defined below) of principal and interest on the notes to be redeemed (not including any portion of such payments of interest accrued as of the date of redemption) discounted to the date of redemption on an annual basis (ACTUAL/ACTUAL (ICMA)) at the applicable Comparable Government Bond Rate (as defined below) plus, in the case of the 2022 Notes, 10 basis points, in the case of the 2023 Notes, 15 basis points, in the case of the 2025 Notes, 15 basis points, in the case of the 2027 Notes 20 basis points, in the case of the 2029 Notes, 20 basis points, and, in the case of the 2037 Notes, 20 basis points; together with, in each case, accrued and unpaid interest on the principal amount of the notes to be redeemed to, but not including, the date of redemption.
|
•
|
be general obligations,
|
•
|
rank equally with all other unsubordinated indebtedness of GE (except to the extent such other indebtedness is secured by collateral that does not also secure the Euro Notes), and
|
•
|
with respect to the assets and earnings of our subsidiaries, effectively rank below all of the liabilities of our subsidiaries.
|
•
|
the successor person expressly assumes our obligations with respect to the Euro Notes Indenture and the debt securities issued thereunder,
|
•
|
immediately after giving effect to the transaction, no event of default shall have occurred and be continuing, and no event which, after notice or lapse of time or both, would become an event of default, shall have occurred and be continuing, and
|
•
|
we have delivered to the Euro Notes Trustee the certificates and opinions required under the Euro Notes Indenture.
|
•
|
our failure to pay principal or premium, if any, on that series of debt securities when such principal or premium, if any, becomes due,
|
•
|
our failure to pay any interest on that series of debt securities for 30 days after such interest becomes due,
|
•
|
our failure to deposit any sinking fund payment for 30 days after such payment is due by the terms of that series of debt securities,
|
•
|
our failure to perform, or our breach, in any material respect, of any other covenant or warranty in the Euro Notes Indenture with respect to that series of debt securities, other than a covenant or warranty included in the Euro Notes Indenture solely for the benefit of another series of debt securities, for 90 days after either the Euro Notes Trustee has given us or holders of at least 25% in principal amount of the outstanding debt securities of that series have given us and the Euro Notes Trustee written notice of such failure to perform or breach in the manner required by the Euro Notes Indenture,
|
•
|
specified events involving our bankruptcy, insolvency or reorganization, or
|
•
|
any other event of default we may provide for that series of debt securities,
|
•
|
we have paid or deposited with the Euro Notes Trustee a sum sufficient to pay:
|
•
|
all overdue interest,
|
•
|
the principal and premium, if any, due otherwise than by the declaration of acceleration and any interest on such amounts,
|
•
|
any interest on overdue interest, to the extent legally permitted, and
|
•
|
all amounts due to the Euro Notes Trustee under the Euro Notes Indenture, and
|
•
|
all events of default with respect to that series of debt securities, other than the nonpayment of the principal which became due solely by virtue of the declaration of acceleration, have been cured or waived.
|
•
|
the direction is not in conflict with any law or the Euro Notes Indenture,
|
•
|
the Euro Notes Trustee may take any other action it deems proper which is not inconsistent with the direction, and
|
•
|
the Euro Notes Trustee will generally have the right to decline to follow the direction if an officer of the Euro Notes Trustee determines, in good faith, that the proceeding would involve the Euro Notes Trustee in personal liability or would otherwise be contrary to applicable law.
|
•
|
the holder gives the Euro Notes Trustee written notice of a continuing event of default for that series,
|
•
|
holders of at least 25% in principal amount of the outstanding debt securities of that series make a written request to the Euro Notes Trustee to institute proceedings with respect to such event of default,
|
•
|
the holders offer reasonable indemnity to the Euro Notes Trustee,
|
•
|
the Euro Notes Trustee fails to pursue that remedy within 60 days after receipt of the notice, request and offer of indemnity, and
|
•
|
during that 60-day period, the holders of a majority in principal amount of the debt securities of that series do not give the Euro Notes Trustee a direction inconsistent with the request.
|
•
|
evidence the succession of another person to us, or successive successions, and the assumption of our covenants, agreements and obligations by the successor,
|
•
|
add to our covenants for the benefit of the holders of any series of debt securities or to surrender any of our rights or powers, add any additional events of default for any series of debt securities for the benefit of the holders of any series of debt securities,
|
•
|
add to or change any provision of the Euro Notes Indenture to the extent necessary to issue debt securities in bearer form or uncertificated form,
|
•
|
add to, change or eliminate any provision of the Euro Notes Indenture applying to one or more series of debt securities, provided that if such action adversely affects the interests of any holder of any series of debt securities in any material respect, such addition, change or elimination will become effective with respect to that series only when no such security of that series remains outstanding,
|
•
|
convey, transfer, assign, mortgage or pledge any property to or with the Euro Notes Trustee or to surrender any right or power conferred upon us by the Euro Notes Indenture,
|
•
|
establish the forms or terms of any series of debt securities,
|
•
|
provide for uncertificated securities in addition to certificated securities,
|
•
|
evidence and provide for successor trustees and to add to or change any provisions of the Euro Notes Indenture to the extent necessary to appoint a separate trustee or trustees for a specific series of debt securities,
|
•
|
correct any ambiguity, defect or inconsistency under the Euro Notes Indenture,
|
•
|
make other provisions with respect to matters or questions arising under the Euro Notes Indenture, provided that such action does not adversely affect the interests of the holders of any series of debt securities in any material respect,
|
•
|
supplement any provisions of the Euro Notes Indenture necessary to defease and discharge any series of debt securities, provided that such action does not adversely affect the interests of the holders of any series of debt securities in any material respect,
|
•
|
comply with the rules or regulations of any securities exchange or automated quotation system on which any debt securities are listed or traded,
|
•
|
add to, change or eliminate any provisions of the Euro Notes Indenture in accordance with any amendments to the Trust Indenture Act of 1939, provided that such action does not adversely affect the rights or interests of any holder of debt securities in any material respect, or
|
•
|
provide for the payment by us of additional amounts in respect of taxes imposed on certain holders and for the treatment of such additional amounts as interest and for all matters incidental thereto.
|
•
|
except with respect to the reset of the interest rate or extension of maturity pursuant to the terms of a particular series, changes the stated maturity of the principal of, or any installment of principal of or interest on, any debt security, or reduces the principal amount of, or any premium or rate of interest on, any debt security,
|
•
|
reduces the amount of principal of an original issue discount security or any other debt security payable upon acceleration of the maturity thereof,
|
•
|
changes the place or currency of payment of principal, premium, if any, or interest,
|
•
|
impairs the right to institute suit for the enforcement of any payment on or after such payment becomes due for any debt security,
|
•
|
reduces the percentage in principal amount of outstanding debt securities of any series, the consent of whose holders is required for modification of the Euro Notes Indenture, for waiver of compliance with certain provisions of the Euro Notes Indenture or for waiver of certain defaults of the Euro Notes Indenture,
|
•
|
makes certain modifications to the provisions for modification of the Euro Notes Indenture and for certain waivers, except to increase the principal amount of debt securities necessary to consent to any such change or to provide that certain other provisions of the Euro Notes Indenture cannot be modified or waived without the consent of the holders of each outstanding debt security affected by such change,
|
•
|
makes any change that adversely affects in any material respect the right to convert or exchange any convertible or exchangeable debt security or decreases the conversion or exchange rate or increases the conversion price of such debt security, unless such decrease or increase is permitted by the terms of such debt securities, or
|
•
|
changes the terms and conditions pursuant to which any series of debt securities are secured in a manner adverse to the holders of such debt securities in any material respect.
|
•
|
waive any default in the payment of principal, premium, if any, or interest, or
|
•
|
waive any covenants and provisions of the Euro Notes Indenture that may not be amended without the consent of the holder of each outstanding debt security of the series affected.
|
•
|
the principal amount of an “original issue discount security” that will be deemed to be outstanding will be the amount of the principal that would be due and payable as of that date upon acceleration of the maturity to that date,
|
•
|
if, as of that date, the principal amount payable at the stated maturity of a debt security is not determinable, for example, because it is based on an index, the principal amount of the debt security deemed to be outstanding as of that date will be an amount determined in the manner prescribed for the debt security,
|
•
|
the principal amount of a debt security denominated in one or more foreign currencies or currency units that will be deemed to be outstanding will be the U.S.-dollar equivalent, determined as of that date in the manner prescribed for the debt security, of the principal amount of the debt security or, in the case of a debt security described in the two preceding bullet points, of the amount described above, and
|
•
|
debt securities owned by us or any other obligor upon the debt securities or any of our or their affiliates will be disregarded and deemed not to be outstanding.
|
•
|
we will be discharged from our obligations with respect to the debt securities of that series (“legal defeasance”), or
|
•
|
we will no longer have any obligation to comply with the restrictive covenants under the Euro Notes Indenture, and the related events of default will no longer apply to us, but some of our other obligations under the Euro Notes Indenture and the debt securities of that series, including our obligation to make payments on those debt securities, will survive (“covenant defeasance”).
|
•
|
the rights of holders of that series of debt securities to receive, solely from a trust fund, payments in respect of such debt securities when payments are due,
|
•
|
our obligation to register the transfer or exchange of debt securities,
|
•
|
our obligation to replace mutilated, destroyed, lost or stolen debt securities, and
|
•
|
our obligation to maintain paying agencies and hold moneys for payment in trust.
|
Grant Date
|
PSUs Granted
|
Restriction Lapse Date
|
Mar/19/2019
|
<<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
|
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
|
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 Section 3 (d)(i) above) or is involuntarily terminated by the Company and its Affiliates (as defined below) for cause, then all remaining PSUs shall be immediately cancelled. For this purpose, “cause” shall be determined by the Company in its sole discretion, and may include a violation of a Company policy and/or code of conduct.
|
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
|
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.
|
|
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
General Electric Company
_/s/ _Amber Kagan______________
Name: Amber Kagan, on behalf of H. Lawrence Culp, Jr. Title: Vice President |
|
L. Kevin Cox
__/s/ L. Kevin Cox_______________
|
|
|
|
|
|
Grant Date
|
PSUs Granted
|
Restriction Lapse Dates
|
December 23, 2019
|
1,500,000
|
December 31, 2020 (with respect to 50% of the PSUs) and December 31, 2021 (with respect to 50% of the PSUs), 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 (“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 as set forth in this Grant Agreement, the GE 2007 Long-Term Incentive Plan (“Plan”) and any rules or procedures adopted by the Committee.
|
2.
|
Dividend Equivalents. Until such time as the following restrictions lapse, or the PSUs are cancelled, whichever occurs first, the Company will establish an amount to be paid to the Grantee (“Dividend Equivalent”) equal to the number of PSUs subject to restriction times the per share quarterly dividend payments made to shareholders of the Company’s Common Stock. The Company shall accumulate Dividend Equivalents and will pay the Grantee a cash amount equal to the Dividend Equivalents accumulated and unpaid as of the date that restrictions lapse (without interest). Such amount shall be paid with respect to each share on the same date that such share is delivered as set forth in paragraph 4. Notwithstanding the foregoing, any accumulated and unpaid Dividend Equivalents attributable to PSUs that are cancelled
|
3.
|
Restrictions/Performance Goals. On each Restriction Lapse Date, the requirement to remain continuously employed by the Company and its Affiliates (as defined below) shall lapse with respect to 50% of the total 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”). PSUs for which the requirement to remain employed has not lapsed shall be immediately cancelled upon termination of employment, except as follows:
|
a.
|
Employment Termination Due to Death or Disability. If the Grantee’s employment with the Company and its Affiliates (as defined below) terminates as a result of the Grantee’s death or disability, then a pro-rata portion of each PSU shall lapse as if the target described in subparagraph 3.1 were met. The pro-rata portion of each PSU shall be based upon the number of days employed during the relevant service period for such PSU, as described in subparagraph 3.1. Each such PSU will be paid to the Grantee’s estate (in the event of death) or Grantee (in the event of disability) within 30 days following the Grantee’s death or disability. For this purpose, “disability” means the inability to perform any job for which the Grantee is reasonably suited by means of education, training or experience.
|
b.
|
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 due to disability under subparagraph 3(a) above) or is involuntarily terminated by the Company and its Affiliates (as defined below) for cause, then all remaining PSUs for which the requirement to remain employed has not lapsed shall be immediately cancelled. For this purpose, “cause” shall be determined by the Company in its sole discretion, and may include a violation of a Company policy and/or code of conduct.
|
c.
|
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 for which the requirement to remain employed has not lapsed shall be immediately cancelled.
|
d.
|
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.
|
e.
|
Vesting. The Committee or its delegates may modify the vesting of any PSUs in its discretion, consistent with applicable law.
|
a.
|
40% of the PSUs (600,000) shall be contingent and adjusted based on achievement of the following goals for the March 19, 2019 to December 31, 2021 performance period:
|
i.
|
If the Company’s Total Shareowner Percentage Return (“TSR”) is equal to the 55th percentile (“target”) of the Total Shareowner Percentage Return for companies in the S&P 500 (“S&P 500 TSR”), then 100% of such PSUs shall be eligible for the lapse of restrictions.
|
ii.
|
If the Company TSR is equal to the 35th percentile (“threshold”) of the S&P 500 TSR, then one-quarter (25%) of such PSUs shall be eligible for the lapse of restrictions. All such PSUs shall be cancelled if Company TSR is less than Threshold performance.
|
iii.
|
If the Company TSR is equal to or exceeds the 80th percentile (“maximum”) of the S&P 500 TSR, then such PSUs to be eligible for the lapse of restrictions shall be adjusted upward by 75% (175%).
|
iv.
|
In the event that the Grantee remains employed with the Company through December 31, 2020, he shall be eligible for 25% of the PSUs granted pursuant to this Section 3.1(a) (i.e., 150,000 PSUs at target), subject to determination by the Committee of the satisfaction of the performance conditions mentioned above; if the Grantee remains
|
b.
|
60% of the PSUs (900,000) shall be contingent and adjusted based on achievement of the goals for the Aviation business under the Company’s Annual Executive Incentive Plan (“AEIP”) as follows:
|
i.
|
The adjustment for one-third of such PSUs (300,000) shall correspond to the actual funding percentage (as may be adjusted by the Committee under the terms of the AEIP), for Aviation’s AEIP bonus pool for January 1, 2019 to December 31, 2019.
|
ii.
|
The adjustment for one-third of such PSUs (300,000) shall correspond to the actual funding percentage (as may be adjusted by the Committee under the terms of the AEIP), for Aviation’s AEIP bonus pool for January 1, 2020 to December 31, 2020.
|
iii.
|
The adjustment for one-third of such PSUs (300,000) shall correspond to the actual funding percentage (as may be adjusted by the Committee under the terms of the AEIP), for Aviation’s AEIP bonus pool for January 1, 2021 to December 31, 2021.
|
iv.
|
In the event that the Grantee remains employed with the Company through December 31, 2020, he shall be eligible for the PSUs granted pursuant to Sections 3.1(b)(i) and (ii) above, subject to determination of the satisfaction of the performance conditions mentioned above by the Committee. In the event that the Grantee remains employed with the Company through December 31, 2021, he shall be eligible for the PSUs granted pursuant to Section 3.1(b)(iii) above, subject to determination of the satisfaction of the performance conditions mentioned above by the Committee.
|
4.
|
Delivery and Withholding Tax. Except in the event of death or disability as described in subparagraph 3(a), as soon as practicable following the applicable Restriction Lapse Date, but in no event later than March 15, 2021, with respect to the PSUs described in Sections 3.1(b)(i) and (ii), and no later than March 15, 2022 with respect to the other PSUs described in this Grant Agreement, 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.
|
7.
|
Section 409A. This Grant Agreement shall be construed and administered consistently with the intent that the PSUs described herein be exempt from the requirements of Section 409A of the Code (“Section 409A”) and any state law of similar effect (i.e., applying the “short-term deferral” rule described in Treas. Reg. § 1.409A-1(b)(4) and/or another exemption). To the extent such laws apply, the Grant Agreement shall be construed and administered consistently with the requirements thereof to avoid taxes thereunder. Consistent therewith, where the Grant Agreement specifies a window during which a payment may be made, the payment date within such window shall be determined by the Employer in its sole discretion.
|
8.
|
Entire Agreement. This Grant Agreement, the Plan, and any 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.
|
(iii)
|
The applicable Termination Date.
|
(f)
|
Termination Date. Your “Termination Date” shall be
|
4.
|
Non- Competition; Non- Solicitation.
|
9.
|
Miscellaneous.
|
By:
|
|
Date:
|
|
SSO:
|
|
|
|
Percentage of voting
|
|
|
|
|
securities directly or
|
|
State or Country
|
|
|
indirectly owned by
|
|
of incorporation
|
|
|
registrant (1)
|
|
or organization
|
|
|
|
|
|
ALSTOM Power Systems
|
|
100
|
|
France
|
ALSTOM UK Holdings Ltd.
|
|
100
|
|
United Kingdom & Northern Ireland
|
Amersham Health Norge AS
|
|
100
|
|
Norway
|
Avio Inc.
|
|
100
|
|
Delaware
|
Baker Hughes, a GE company, LLC
|
|
36.8
|
|
Delaware
|
CALGEN Holdings, Inc.
|
|
100
|
|
Delaware
|
Cardinal Cogen, Inc.
|
|
100
|
|
Delaware
|
Caribe GE International of Puerto Rico, Inc.
|
|
100
|
|
Puerto Rico
|
Concept Laser GmbH
|
|
75
|
|
Germany
|
Datex-Ohmeda, Inc.
|
|
100
|
|
Delaware
|
Engine Investments Holding Company
|
|
100
|
|
Delaware
|
FieldCore Service, Inc.
|
|
100
|
|
Delaware
|
GE Aero Energy Power, LLC
|
|
100
|
|
Delaware
|
GE Albany CH GmbH
|
|
100
|
|
Switzerland
|
GE Albany C.V.
|
|
100
|
|
Netherlands
|
GE Albany Global Holdings BV
|
|
100
|
|
Netherlands
|
GE Albany US Holdings LLC
|
|
100
|
|
Delaware
|
GE Aviation Systems Group Limited
|
|
100
|
|
United Kingdom & Northern Ireland
|
GE Aviation Systems North America LLC
|
|
100
|
|
Delaware
|
GE Aviation UK
|
|
100
|
|
United Kingdom & Northern Ireland
|
GE Caledonian Limited
|
|
100
|
|
United Kingdom & Northern Ireland
|
GE Canada Holdings, Inc.
|
|
100
|
|
Delaware
|
GE Capital Global Financial Holdings, LLC
|
|
100
|
|
Connecticut
|
GE Capital Global Holdings, LLC
|
|
100
|
|
Delaware
|
GE Capital UK Finance
|
|
100
|
|
United Kingdom & Northern Ireland
|
GE Celma LTDA
|
|
100
|
|
Brazil
|
GE Digital Holdings LLC
|
|
100
|
|
Delaware
|
GE Drives & Controls, Inc.
|
|
100
|
|
Delaware
|
GE Energias Renovaveis Ltda.
|
|
100
|
|
Brazil
|
GE Energy Netherlands, B.V.
|
|
100
|
|
Netherlands
|
GE Energy Parts, Inc.
|
|
100
|
|
Delaware
|
GE Energy Power Conversion GmbH
|
|
100
|
|
Germany
|
GE Energy Power Conversion Group
|
|
100
|
|
France
|
GE Energy Power Conversion UK Holdings Limited
|
|
100
|
|
United Kingdom & Northern Ireland
|
GE Energy Power Conversion USA Inc.
|
|
100
|
|
Delaware
|
GE Energy Products France SNC
|
|
100
|
|
France
|
GE Energy Services, Inc.
|
|
100
|
|
Delaware
|
GE Energy Switzerland GmbH
|
|
100
|
|
Switzerland
|
|
|
Percentage of voting
|
|
|
GE Energy (USA), LLC
|
|
100
|
|
Delaware
|
GE Engine Services, LLC
|
|
100
|
|
Delaware
|
GE Engine Services - Dallas, LP
|
|
100
|
|
Delaware
|
GE Engine Services Distribution, L.L.C.
|
|
100
|
|
Delaware
|
GE Engine Services - Miami, Inc.
|
|
100
|
|
Delaware
|
GE Engine Services UNC Holding I, Inc.
|
|
100
|
|
Delaware
|
GE Financial Assurance Holdings, LLC
|
|
100
|
|
Delaware
|
GE Financial Funding Unlimited Company
|
|
100
|
|
Ireland
|
GE Financial Ireland Unlimited Company
|
|
100
|
|
Ireland
|
GE France
|
|
100
|
|
France
|
GE Gas Turbines (Greenville) L.L.C.
|
|
100
|
|
Delaware
|
GE Global Parts & Products GmbH
|
|
100
|
|
Switzerland
|
GE Grid Alliance B.V.
|
|
100
|
|
Netherlands
|
GE Grid Solutions UK B.V.
|
|
100
|
|
Netherlands
|
GE Healthcare AS
|
|
100
|
|
Norway
|
GE Healthcare Bio-Sciences AB
|
|
100
|
|
Sweden
|
GE Healthcare BVBA
|
|
100
|
|
Belgium
|
GE Healthcare European Holdings SARL
|
|
100
|
|
Luxembourg
|
GE Healthcare Finland Oy
|
|
100
|
|
Finland
|
GE Healthcare Holding Norge AS
|
|
100
|
|
Norway
|
GE Healthcare Japan Corporation
|
|
100
|
|
Japan
|
GE Healthcare Life Sciences Holding AB
|
|
100
|
|
Sweden
|
GE Healthcare Limited
|
|
100
|
|
United Kingdom & Northern Ireland
|
GE Healthcare Norge AS
|
|
100
|
|
Norway
|
GE Healthcare Sweden Holding AB
|
|
100
|
|
Sweden
|
GE Healthcare USA Holding LLC
|
|
100
|
|
Delaware
|
GE HOLDINGS LUXEMBOURG & CO S.a.r.l.
|
|
100
|
|
Luxembourg
|
GE Holdings (US), Inc.
|
|
100
|
|
Delaware
|
GE Hungary Kft.
|
|
100
|
|
Hungary
|
GE Industrial Consolidation Limited
|
|
100
|
|
United Kingdom & Northern Ireland
|
GE Infrastructure Aviation
|
|
100
|
|
United Kingdom & Northern Ireland
|
GE Infrastructure, LLC
|
|
100
|
|
Delaware
|
GE Infrastructure Technology International LLC
|
|
100
|
|
Delaware
|
GE Inspection and Repair Services Limited
|
|
100
|
|
United Kingdom & Northern Ireland
|
GE Investments, LLC
|
|
100
|
|
Delaware
|
GE Italia Holding S.r.l.
|
|
100
|
|
Italy
|
GE Japan Investments Coöperatief U.A.
|
|
100
|
|
Netherlands
|
GE LIGHTING SYSTEMS S.R.L.
|
|
100
|
|
Italy
|
GE Maintenance Services, Inc.
|
|
100
|
|
Delaware
|
GE Media Holdings, Inc.
|
|
100
|
|
Delaware
|
GE Medical Systems Global Technology Company, LLC
|
|
100
|
|
Delaware
|
GE Medical Systems Information Technologies, Inc.
|
|
100
|
|
Wisconsin
|
GE Medical Systems, Inc.
|
|
100
|
|
Delaware
|
GE Medical Systems, L.L.C.
|
|
100
|
|
Delaware
|
GE Medical Systems Societe en Commandite Simple
|
|
100
|
|
France
|
GE Medical Systems, Ultrasound & Primary Care Diagnostics, LLC
|
|
100
|
|
Delaware
|
GE Mexico, S.de R.L. de C.V.
|
|
100
|
|
Mexico
|
GE Military Systems
|
|
100
|
|
Delaware
|
GE Oil & Gas US Holdings I, Inc.
|
|
100
|
|
Delaware
|
GE Oil & Gas US Holdings IV, Inc.
|
|
100
|
|
Delaware
|
|
|
Percentage of voting
|
|
|
GE Pacific Holdings II B.V.
|
|
100
|
|
Netherlands
|
GE Pacific Holdings Pte. Ltd.
|
|
100
|
|
Singapore
|
GE Pacific Private Limited
|
|
100
|
|
Singapore
|
GE Packaged Power, LLC
|
|
100
|
|
Delaware
|
GE Packaged Power, L.P.
|
|
100
|
|
Delaware
|
GE Power Netherlands B.V.
|
|
100
|
|
Netherlands
|
GE Precision Healthcare, LLC
|
|
100
|
|
Delaware
|
GE Renewable Holding B.V.
|
|
100
|
|
Netherlands
|
GE Renewables North America, LLC
|
|
100
|
|
Delaware
|
GE Repair Solutions Singapore Pte. Ltd.
|
|
100
|
|
Singapore
|
GE Treasury Services Industrial Ireland Limited
|
|
100
|
|
Ireland
|
GE UK Group
|
|
100
|
|
United Kingdom & Northern Ireland
|
GE UK Holdings
|
|
100
|
|
United Kingdom & Northern Ireland
|
GE WIND France SAS
|
|
100
|
|
France
|
GEAE Technology, Inc.
|
|
100
|
|
Delaware
|
GEAST SAS
|
|
100
|
|
France
|
GEH HOLDINGS
|
|
100
|
|
United Kingdom & Northern Ireland
|
GENE Holding LLC
|
|
100
|
|
Delaware
|
General Electric (Bermuda) Ltd.
|
|
100
|
|
Bermuda
|
General Electric Canada Company
|
|
100
|
|
Canada
|
General Electric Canada Holdings Limited
|
|
100
|
|
Canada
|
General Electric Deutschland Holding GmbH
|
|
100
|
|
Germany
|
GENERAL ELECTRIC ENERGY UK LIMITED
|
|
100
|
|
United Kingdom & Northern Ireland
|
General Electric Financing C.V.
|
|
100
|
|
Netherlands
|
General Electric Foreign Sales Corporation
|
|
100
|
|
The Bahamas & Eleuthera Island
|
General Electric International (Benelux) B.V.
|
|
100
|
|
Netherlands
|
General Electric International, Inc.
|
|
100
|
|
Delaware
|
General Electric International Japan Investments I SARL
|
|
100
|
|
Luxembourg
|
General Electric International Operations Company, Inc.
|
|
100
|
|
Delaware
|
General Electric Services (Bermuda) Ltd.
|
|
100
|
|
Bermuda
|
General Electric Services Luxembourg SARL
|
|
100
|
|
Luxembourg
|
General Electric (Switzerland) GmbH
|
|
100
|
|
Switzerland
|
General Electric Technology GmbH
|
|
100
|
|
Switzerland
|
GMC Consolidation LLC
|
|
100
|
|
Delaware
|
Grid Solutions SAS
|
|
100
|
|
France
|
Grid Solutions (U.S.) LLC
|
|
100
|
|
Delaware
|
IDX Systems Corporation
|
|
100
|
|
Vermont
|
Inland Empire Energy Center, LLC
|
|
100
|
|
Delaware
|
Inland Empire Holding Limited I, Inc.
|
|
100
|
|
Delaware
|
International General Electric (U.S.A.)
|
|
100
|
|
United Kingdom &
Northern Ireland
|
LM Wind Power Holding A/S
|
|
100
|
|
Denmark
|
Midwest Electric Products, Inc.
|
|
100
|
|
Minnesota
|
Nuclear Fuel Holding Co., Inc.
|
|
100
|
|
Delaware
|
OEC Medical Systems, Inc.
|
|
100
|
|
Delaware
|
One GE Healthcare UK
|
|
100
|
|
United Kingdom & Northern Ireland
|
Patent Licensing International, Inc.
|
|
100
|
|
Delaware
|
Power Holding LLC
|
|
100
|
|
Delaware
|
Ropcor, Inc.
|
|
100
|
|
Delaware
|
|
|
Percentage of voting
|
|
|
Unison Industries, LLC
|
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100
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Delaware
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Viceroy, Inc.
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100
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Delaware
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Whatman Limited
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100
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United Kingdom & Northern Ireland
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(1)
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With respect to certain companies, shares in names of nominees and qualifying shares in names of directors are included in above percentages.
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/s/ KPMG LLP
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KPMG LLP
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/s/ H. Lawrence Culp, Jr.
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H. Lawrence Culp, Jr.
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Chairman of the Board
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(Principal Executive
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Officer and Director)
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/s/ Jamie S. Miller
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/s/ Thomas S. Timko
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Jamie S. Miller
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Thomas S. Timko
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Senior Vice President and
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Vice President, Chief Accounting
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Chief Financial Officer
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Officer and Controller
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(Principal Financial Officer)
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(Principal Accounting Officer)
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/s/ Sébastien M. Bazin
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/s/ Catherine A. Lesjak
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Sébastien M. Bazin
Director
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Catherine A. Lesjak
Director
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/s/ Francisco D’Souza
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/s/ Paula Rosput Reynolds
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Francisco D’Souza
Director |
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Paula Rosput Reynolds
Director
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/s/ Edward P. Garden
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/s/ Leslie F. Seidman
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Edward P. Garden
Director |
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Leslie F. Seidman
Director
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/s/ Thomas W. Horton
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/s/ James S. Tisch
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Thomas W. Horton
Director
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James S. Tisch
Director |
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/s/ Risa Lavizzo-Mourey
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Risa Lavizzo-Mourey
Director |
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1.
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I have reviewed this annual report on Form 10-K of General Electric Company;
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2.
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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;
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3.
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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;
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4.
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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:
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a)
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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;
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b)
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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;
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c)
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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
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d)
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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
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5.
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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):
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a)
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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
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b)
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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.
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/s/ H. Lawrence Culp, Jr.
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H. Lawrence Culp, Jr.
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Chief Executive Officer
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1.
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I have reviewed this annual report on Form 10-K of General Electric Company;
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2.
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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;
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3.
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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;
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4.
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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:
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a)
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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;
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b)
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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;
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c)
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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
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d)
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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
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5.
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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):
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a)
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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
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b)
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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.
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/s/ Jamie S. Miller
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Jamie S. Miller
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Chief Financial Officer
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(1)
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The report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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(2)
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The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the registrant.
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/s/ H. Lawrence Culp, Jr.
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H. Lawrence Culp, Jr.
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Chief Executive Officer
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/s/ Jamie S. Miller
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Jamie S. Miller
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Chief Financial Officer
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