New York
|
|
14-0689340
|
||
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
||
|
|
|
|
|
5 Necco Street
|
Boston
|
MA
|
|
02210
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common stock, par value $0.06 per share
|
GE
|
New York Stock Exchange
|
Floating Rate Notes due 2020
|
GE 20E
|
New York Stock Exchange
|
0.375% Notes due 2022
|
GE 22A
|
New York Stock Exchange
|
1.250% Notes due 2023
|
GE 23E
|
New York Stock Exchange
|
0.875% Notes due 2025
|
GE 25
|
New York Stock Exchange
|
1.875% Notes due 2027
|
GE 27E
|
New York Stock Exchange
|
1.500% Notes due 2029
|
GE 29
|
New York Stock Exchange
|
7 1/2% Guaranteed Subordinated Notes due 2035
|
GE /35
|
New York Stock Exchange
|
2.125% Notes due 2037
|
GE 37
|
New York Stock Exchange
|
Large accelerated filer
|
☑
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
|
|
|
Page
|
|
|
Non-GAAP Financial Measures
|
|
MD&A
|
|
|
MD&A
|
CONSOLIDATED RESULTS
|
|
MD&A
|
CONSOLIDATED RESULTS
|
|
GE INDUSTRIAL ORDERS
|
Three months ended March 31
|
|||||
(In billions)
|
2020
|
|
2019
|
|
||
|
|
|
||||
Equipment
|
$
|
9.2
|
|
$
|
10.0
|
|
Services
|
10.3
|
|
10.6
|
|
||
Total orders(a)
|
$
|
19.5
|
|
$
|
20.6
|
|
Total organic orders
|
$
|
19.6
|
|
$
|
20.2
|
|
GE INDUSTRIAL BACKLOG (In billions)
|
March 31, 2020
|
|
December 31, 2019
|
|
March 31, 2019
|
|
|||
|
|
|
|
||||||
Equipment
|
$
|
76.9
|
|
$
|
79.0
|
|
$
|
79.0
|
|
Services
|
324.2
|
|
325.6
|
|
274.3
|
|
|||
Total backlog(a)
|
$
|
401.1
|
|
$
|
404.6
|
|
$
|
353.3
|
|
MD&A
|
CONSOLIDATED RESULTS
|
|
March 31, 2020 (In billions)
|
Equipment
|
|
Services
|
|
Total
|
|
|||
|
|
|
|
||||||
Backlog
|
$
|
76.9
|
|
$
|
324.2
|
|
$
|
401.1
|
|
Adjustments
|
(31.7
|
)
|
(129.0
|
)
|
(160.7
|
)
|
|||
Remaining performance obligation
|
$
|
45.2
|
|
$
|
195.2
|
|
$
|
240.4
|
|
REVENUES
|
Three months ended March 31
|
|||||
(In billions)
|
2020
|
|
2019
|
|
||
|
|
|
||||
Consolidated revenues
|
$
|
20.5
|
|
$
|
22.2
|
|
|
|
|
||||
Equipment
|
9.2
|
|
9.6
|
|
||
Services
|
9.7
|
|
10.7
|
|
||
GE Industrial revenues
|
$
|
18.8
|
|
$
|
20.3
|
|
|
|
|
||||
GE Capital revenues
|
$
|
1.9
|
|
$
|
2.2
|
|
EARNINGS (LOSS) AND EARNINGS (LOSS) PER SHARE
|
Three months ended March 31
|
|||||
(In billions; per-share in dollars and diluted)
|
2020
|
|
2019
|
|
||
|
|
|
||||
Continuing earnings
|
$
|
6.3
|
|
$
|
0.9
|
|
Continuing earnings per share
|
$
|
0.72
|
|
$
|
0.10
|
|
MD&A
|
CONSOLIDATED RESULTS
|
|
SUMMARY OF REPORTABLE SEGMENTS
|
Three months ended March 31
|
||||||||
(In millions)
|
2020
|
|
2019
|
|
V%
|
|
|
||
|
|
|
|
|
|||||
Power
|
$
|
4,025
|
|
$
|
4,617
|
|
(13
|
)
|
%
|
Renewable Energy
|
3,194
|
|
2,538
|
|
26
|
|
%
|
||
Aviation
|
6,892
|
|
7,954
|
|
(13
|
)
|
%
|
||
Healthcare
|
4,727
|
|
4,683
|
|
1
|
|
%
|
||
Capital
|
1,923
|
|
2,227
|
|
(14
|
)
|
%
|
||
Total segment revenues
|
20,761
|
|
22,019
|
|
(6
|
)
|
%
|
||
Corporate items and eliminations
|
(237
|
)
|
183
|
|
U
|
|
|
||
Consolidated revenues
|
$
|
20,524
|
|
$
|
22,202
|
|
(8
|
)
|
%
|
|
|
|
|
|
|
||||
Power
|
$
|
(129
|
)
|
$
|
110
|
|
U
|
|
|
Renewable Energy
|
(302
|
)
|
(187
|
)
|
(61
|
)
|
%
|
||
Aviation
|
1,005
|
|
1,660
|
|
(39
|
)
|
%
|
||
Healthcare
|
896
|
|
781
|
|
15
|
|
%
|
||
Capital
|
(30
|
)
|
135
|
|
U
|
|
|
||
Total segment profit (loss)
|
1,441
|
|
2,500
|
|
(42
|
)
|
%
|
||
Corporate items and eliminations
|
6,064
|
|
(228
|
)
|
F
|
|
|
||
GE interest and other financial charges
|
(370
|
)
|
(520
|
)
|
29
|
|
%
|
||
GE non-operating benefit costs
|
(616
|
)
|
(564
|
)
|
(9
|
)
|
%
|
||
GE benefit (provision) for income taxes
|
(187
|
)
|
(268
|
)
|
30
|
|
%
|
||
Earnings (loss) from continuing operations attributable to GE common shareholders
|
6,332
|
|
920
|
|
F
|
|
|
||
Earnings (loss) from discontinued operations, net of taxes
|
(178
|
)
|
2,663
|
|
U
|
|
|
||
Less net earnings attributable to noncontrolling interests, discontinued operations
|
(2
|
)
|
34
|
|
U
|
|
|
||
Earnings (loss) from discontinued operations, net of tax and noncontrolling interest
|
(176
|
)
|
2,629
|
|
U
|
|
|
||
Consolidated net earnings (loss) attributable to the GE common shareholders
|
$
|
6,156
|
|
$
|
3,549
|
|
73
|
|
%
|
MD&A
|
SEGMENT OPERATIONS
|
|
(In billions)
|
|
|
|
March 31, 2020
|
|
March 31, 2019
|
|
||
|
|
|
|
|
|
||||
Equipment
|
|
|
|
$
|
18.2
|
|
$
|
19.1
|
|
Services
|
|
|
|
66.9
|
|
66.8
|
|
||
Total backlog
|
|
|
|
$
|
85.1
|
|
$
|
85.9
|
|
|
|
|
|
Three months ended March 31
|
|||||||||
( Dollars in billions)
|
|
|
|
|
|
2020
|
|
|
2019
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||||
Equipment
|
|
|
|
|
|
$
|
1.5
|
|
|
$
|
1.0
|
|
|
Services
|
|
|
|
|
|
2.6
|
|
|
2.7
|
|
|
||
Total orders
|
|
|
|
|
|
$
|
4.1
|
|
|
$
|
3.7
|
|
|
Gas Power
|
|
|
|
|
|
$
|
2.9
|
|
|
$
|
3.3
|
|
|
Power Portfolio
|
|
|
|
|
|
1.2
|
|
|
1.4
|
|
|
||
Total segment revenues
|
|
|
|
|
|
$
|
4.0
|
|
|
$
|
4.6
|
|
|
Equipment
|
|
|
|
|
|
$
|
1.5
|
|
|
$
|
1.6
|
|
|
Services
|
|
|
|
|
|
2.5
|
|
|
3.0
|
|
|
||
Total segment revenues
|
|
|
|
|
|
$
|
4.0
|
|
|
$
|
4.6
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment profit (loss)
|
|
|
|
|
|
$
|
(0.1
|
)
|
|
$
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment profit margin
|
|
|
|
|
|
(3.2
|
)
|
%
|
2.4
|
|
%
|
MD&A
|
SEGMENT OPERATIONS
|
|
|
Three months ended March 31
|
||||||||
|
Orders
|
|
Sales
|
||||||
(In units)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
||||
Onshore
|
|
|
|
|
|
||||
Wind Turbines
|
738
|
|
970
|
|
|
731
|
|
353
|
|
Wind Turbine Megawatts
|
2,333
|
|
2,664
|
|
|
2,093
|
|
988
|
|
Repower
|
6
|
|
100
|
|
|
219
|
|
156
|
|
(In billions)
|
|
|
|
March 31, 2020
|
|
March 31, 2019
|
|
||
|
|
|
|
|
|
||||
Equipment
|
|
|
|
$
|
15.8
|
|
$
|
15.6
|
|
Services
|
|
|
|
10.7
|
|
9.6
|
|
||
Total backlog
|
|
|
|
$
|
26.5
|
|
$
|
25.2
|
|
|
|
|
|
Three months ended March 31
|
|
||||||||
(In billions)
|
|
|
|
|
|
2020
|
|
|
2019
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||||
Equipment
|
|
|
|
|
|
$
|
2.7
|
|
|
$
|
3.0
|
|
|
Services
|
|
|
|
|
|
0.4
|
|
|
0.5
|
|
|
||
Total orders
|
|
|
|
|
|
$
|
3.1
|
|
|
$
|
3.5
|
|
|
Onshore Wind
|
|
|
|
|
|
$
|
2.1
|
|
|
$
|
1.4
|
|
|
Grid Solutions equipment and services
|
|
|
|
|
|
0.8
|
|
|
0.9
|
|
|
||
Hydro, Offshore Wind and other
|
|
|
|
|
|
0.2
|
|
|
0.2
|
|
|
||
Total segment revenues
|
|
|
|
|
|
$
|
3.2
|
|
|
$
|
2.5
|
|
|
MD&A
|
SEGMENT OPERATIONS
|
|
|
|
|
|
Three months ended March 31
|
|
||||||||
(Dollars in billions)
|
|
|
|
|
|
2020
|
|
|
2019
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||||
Equipment
|
|
|
|
|
|
$
|
2.6
|
|
|
$
|
2.0
|
|
|
Services
|
|
|
|
|
|
0.6
|
|
|
0.6
|
|
|
||
Total segment revenues
|
|
|
|
|
|
$
|
3.2
|
|
|
$
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment profit (loss)
|
|
|
|
|
|
$
|
(0.3
|
)
|
|
$
|
(0.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment profit margin
|
|
|
|
|
|
(9.5
|
)
|
%
|
(7.4
|
)
|
%
|
MD&A
|
SEGMENT OPERATIONS
|
|
(In billions)
|
|
|
|
March 31, 2020
|
|
March 31, 2019
|
|
||
|
|
|
|
|
|
||||
Equipment
|
|
|
|
$
|
39.2
|
|
$
|
38.0
|
|
Services
|
|
|
|
234.1
|
|
185.4
|
|
||
Total backlog
|
|
|
|
$
|
273.2
|
|
$
|
223.5
|
|
|
|
|
|
Three months ended March 31
|
|
||||||||
(Dollars in billions)
|
|
|
|
|
|
2020
|
|
|
2019
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||||
Equipment
|
|
|
|
|
|
$
|
2.2
|
|
|
$
|
3.2
|
|
|
Services
|
|
|
|
|
|
5.2
|
|
|
5.5
|
|
|
||
Total orders
|
|
|
|
|
|
$
|
7.4
|
|
|
$
|
8.7
|
|
|
Commercial Engines & Services
|
|
|
|
|
|
$
|
4.8
|
|
|
$
|
5.9
|
|
|
Military
|
|
|
|
|
|
1.0
|
|
|
1.0
|
|
|
||
Systems & Other
|
|
|
|
|
|
1.2
|
|
|
1.0
|
|
|
||
Total segment revenues
|
|
|
|
|
|
$
|
6.9
|
|
|
$
|
8.0
|
|
|
Equipment
|
|
|
|
|
|
$
|
2.4
|
|
|
$
|
3.1
|
|
|
Services
|
|
|
|
|
|
4.4
|
|
|
4.8
|
|
|
||
Total segment revenues
|
|
|
|
|
|
$
|
6.9
|
|
|
$
|
8.0
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment profit
|
|
|
|
|
|
$
|
1.0
|
|
|
$
|
1.7
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment profit margin
|
|
|
|
|
|
14.6
|
|
%
|
20.9
|
|
%
|
MD&A
|
SEGMENT OPERATIONS
|
|
(In billions)
|
|
|
|
March 31, 2020
|
|
March 31, 2019
|
|
||
|
|
|
|
|
|
||||
Equipment
|
|
|
|
$
|
6.0
|
|
$
|
6.6
|
|
Services
|
|
|
|
11.4
|
|
11.3
|
|
||
Total backlog(a)
|
|
|
|
$
|
17.4
|
|
$
|
17.9
|
|
|
|
|
Three months ended March 31
|
||||||||||
(In billions)
|
|
|
|
|
|
2020
|
|
|
2019
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||||
Equipment
|
|
|
|
|
|
$
|
3.3
|
|
|
$
|
2.9
|
|
|
Services
|
|
|
|
|
|
2.0
|
|
|
2.0
|
|
|
||
Total orders(a)
|
|
|
|
|
|
$
|
5.3
|
|
|
$
|
4.9
|
|
|
Healthcare Systems (HCS)
|
|
|
|
|
|
$
|
3.4
|
|
|
$
|
3.4
|
|
|
Life Sciences(b)
|
|
|
|
|
|
1.3
|
|
|
1.3
|
|
|
||
Total segment revenues
|
|
|
|
|
|
$
|
4.7
|
|
|
$
|
4.7
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(a) Backlog as of March 31, 2020 excluded the BioPharma business due to its disposition in the first quarter of 2020. Orders included $1.1 billion and $1.0 billion related to BioPharma for the three months ended March 31, 2020 and 2019, respectively.
|
|||||||||||||
(b) Included revenues of $0.8 billion and $0.8 billion from BioPharma for the three months ended March 31, 2020 and 2019, respectively.
|
MD&A
|
SEGMENT OPERATIONS
|
|
|
|
|
|
Three months ended March 31
|
|
||||||||
(Dollars in billions)
|
|
|
|
|
|
2020
|
|
|
2019
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||||
Equipment
|
|
|
|
|
|
$
|
2.7
|
|
|
$
|
2.7
|
|
|
Services
|
|
|
|
|
|
2.0
|
|
|
2.0
|
|
|
||
Total segment revenues
|
|
|
|
|
|
$
|
4.7
|
|
|
$
|
4.7
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment profit
|
|
|
|
|
|
$
|
0.9
|
|
|
$
|
0.8
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment profit margin
|
|
|
|
|
|
19.0
|
|
%
|
16.7
|
|
%
|
MD&A
|
SEGMENT OPERATIONS
|
|
(Dollars in billions)
|
March 31, 2020
|
|
December 31, 2019
|
|
||
|
|
|
||||
GECAS
|
$
|
37.3
|
|
$
|
38.0
|
|
EFS
|
1.8
|
|
1.8
|
|
||
WCS(a)
|
7.8
|
|
9.0
|
|
||
Insurance
|
46.8
|
|
46.3
|
|
||
Other continuing operations(a)
|
17.5
|
|
22.5
|
|
||
Total segment assets
|
$
|
111.1
|
|
$
|
117.5
|
|
GE Capital debt to equity ratio
|
3.6:1
|
3.9:1
|
|
|
|
Three months ended March 31
|
||||||
(In billions)
|
|
|
|
2020
|
|
2019
|
|
||
|
|
|
|
|
|
||||
GECAS
|
|
|
|
$
|
1.1
|
|
$
|
1.2
|
|
EFS
|
|
|
|
0.1
|
|
—
|
|
||
WCS
|
|
|
|
0.1
|
|
0.3
|
|
||
Insurance
|
|
|
|
0.6
|
|
0.7
|
|
||
Other continuing operations
|
|
|
|
—
|
|
—
|
|
||
Total segment revenues
|
|
|
|
$
|
1.9
|
|
$
|
2.2
|
|
GECAS
|
|
|
|
$
|
0.2
|
|
$
|
0.3
|
|
EFS
|
|
|
|
0.1
|
|
—
|
|
||
WCS
|
|
|
|
—
|
|
0.1
|
|
||
Insurance
|
|
|
|
(0.1
|
)
|
—
|
|
||
Other continuing operations(a)
|
|
|
|
(0.2
|
)
|
(0.3
|
)
|
||
Total segment profit
|
|
|
|
$
|
—
|
|
$
|
0.1
|
|
|
Three months ended March 31
|
|||||
(In millions)
|
2020
|
|
2019
|
|
||
|
|
|
||||
Revenues
|
|
|
||||
Corporate revenues
|
$
|
377
|
|
$
|
592
|
|
Eliminations and other
|
(615
|
)
|
(408
|
)
|
||
Total Corporate Items and Eliminations
|
$
|
(237
|
)
|
$
|
183
|
|
|
|
|
||||
Operating profit (cost)
|
|
|
||||
Gains (losses) on disposals and held for sale businesses
|
$
|
12,439
|
|
$
|
365
|
|
Restructuring and other charges
|
(207
|
)
|
(258
|
)
|
||
Unrealized gains (losses)
|
(5,794
|
)
|
13
|
|
||
Adjusted total corporate operating costs (Non-GAAP)
|
(374
|
)
|
(348
|
)
|
||
Total Corporate Items and Eliminations (GAAP)
|
$
|
6,064
|
|
$
|
(228
|
)
|
Less: gains (losses) and restructuring & other
|
6,438
|
|
120
|
|
||
Adjusted total corporate operating costs (Non-GAAP)
|
$
|
(374
|
)
|
$
|
(348
|
)
|
MD&A
|
CORPORATE ITEMS AND ELIMINATIONS
|
|
Three months ended March 31
|
|||||
(In millions)
|
2020
|
|
2019
|
|
||
|
|
|
||||
Functions & operations
|
$
|
(266
|
)
|
$
|
(357
|
)
|
Eliminations
|
(98
|
)
|
6
|
|
||
Environmental, health and safety (EHS) and other items
|
(10
|
)
|
4
|
|
||
Adjusted total corporate operating costs (Non-GAAP)
|
$
|
(374
|
)
|
$
|
(348
|
)
|
|
Three months ended March 31
|
|||||
(In billions)
|
2020
|
|
2019
|
|
||
|
|
|
||||
Workforce reductions
|
$
|
0.2
|
|
$
|
0.2
|
|
Plant closures & associated costs and other asset write-downs
|
—
|
|
0.1
|
|
||
Acquisition/disposition net charges
|
—
|
|
—
|
|
||
Total restructuring and other charges
|
$
|
0.2
|
|
$
|
0.3
|
|
|
|
|
||||
Cost of product/services
|
$
|
0.1
|
|
$
|
0.1
|
|
Selling, general and administrative expenses
|
0.1
|
|
0.2
|
|
||
Other income
|
—
|
|
—
|
|
||
Total restructuring and other charges
|
$
|
0.2
|
|
$
|
0.3
|
|
|
|
|
||||
Power
|
$
|
—
|
|
$
|
—
|
|
Renewable Energy
|
—
|
|
—
|
|
||
Aviation
|
0.1
|
|
—
|
|
||
Healthcare
|
—
|
|
0.1
|
|
||
Corporate
|
0.1
|
|
0.1
|
|
||
Total restructuring and other charges
|
$
|
0.2
|
|
$
|
0.3
|
|
MD&A
|
CORPORATE ITEMS AND ELIMINATIONS
|
|
Costs
|
Gains (Losses)
|
||||||||||
|
Three months ended March 31
|
Three months ended March 31
|
||||||||||
(In billions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
||||
|
|
|
|
|
||||||||
Power
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Renewable Energy
|
—
|
|
—
|
|
—
|
|
—
|
|
||||
Aviation
|
0.1
|
|
—
|
|
—
|
|
—
|
|
||||
Healthcare
|
—
|
|
0.1
|
|
12.3
|
|
—
|
|
||||
Total segments
|
$
|
0.1
|
|
$
|
0.1
|
|
$
|
12.4
|
|
$
|
—
|
|
Corporate Items & Eliminations
|
0.1
|
|
0.1
|
|
(5.7
|
)
|
0.4
|
|
||||
Total Industrial
|
$
|
0.2
|
|
$
|
0.3
|
|
$
|
6.6
|
|
$
|
0.4
|
|
INTEREST AND OTHER FINANCIAL CHARGES
|
Three months ended March 31
|
|||||
(In billions)
|
2020
|
|
2019
|
|
||
|
|
|
||||
GE
|
$
|
0.4
|
|
$
|
0.5
|
|
GE Capital
|
0.5
|
|
0.7
|
|
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS
|
Three months ended March 31
|
|||||
(In billions)
|
2020
|
|
2019
|
|
||
|
|
|
||||
Earnings (loss) of discontinued operations, net of taxes
|
$
|
(174
|
)
|
$
|
109
|
|
Gain (loss) on disposal, net of taxes
|
(4
|
)
|
2,553
|
|
||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(178
|
)
|
$
|
2,663
|
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
(In billions)
|
March 31, 2020
|
|
|
|
March 31, 2020
|
|
||
|
|
|
|
|
||||
GE
|
$
|
33.8
|
|
|
U.S.
|
$
|
31.7
|
|
GE Capital
|
13.5
|
|
|
Non-U.S.
|
15.6
|
|
||
Consolidated
|
$
|
47.3
|
|
|
Consolidated
|
$
|
47.3
|
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
March 31, 2020 (In billions)
|
GE
|
|
GE Capital
|
|
Consolidated(a)
|
|
|||
|
|
|
|
||||||
Total short- and long-term borrowings
|
$
|
48.1
|
|
$
|
37.6
|
|
$
|
85.2
|
|
|
|
|
|
||||||
Debt assumed by GE from GE Capital
|
(29.1
|
)
|
29.1
|
|
—
|
|
|||
Intercompany loans with right of offset
|
12.2
|
|
(12.2
|
)
|
—
|
|
|||
Total intercompany payable (receivable) between GE and GE Capital
|
(16.9
|
)
|
16.9
|
|
—
|
|
|||
|
|
|
|
||||||
Total borrowings adjusted for assumed debt and intercompany loans
|
$
|
31.2
|
|
$
|
54.5
|
|
$
|
85.2
|
|
(a)
|
Included $0.6 billion of eliminations of other GE borrowings from GE Capital, primarily related to timing of cash settlements associated with GE receivables monetization programs.
|
GE (In billions)
|
March 31, 2020
|
|
December 31,
2019 |
|
|
GE Capital (In billions)
|
March 31, 2020
|
|
December 31, 2019
|
|
||||
Commercial paper
|
$
|
1.9
|
|
$
|
3.0
|
|
|
Senior and subordinated notes
|
$
|
35.8
|
|
$
|
36.5
|
|
GE senior notes
|
15.4
|
|
15.5
|
|
|
Senior and subordinated notes assumed by GE
|
29.1
|
|
31.4
|
|
||||
Intercompany loans from
GE Capital
|
12.2
|
|
12.2
|
|
|
Intercompany loans to GE
|
(12.2
|
)
|
(12.2
|
)
|
||||
Other GE borrowings
|
1.6
|
|
2.2
|
|
|
Other GE Capital borrowings(a)
|
1.8
|
|
3.4
|
|
||||
|
|
|
|
Total GE Capital
|
|
|
||||||||
Total GE adjusted borrowings
|
$
|
31.2
|
|
$
|
32.9
|
|
|
adjusted borrowings
|
$
|
54.5
|
|
$
|
59.0
|
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
GE COMMITTED AND AVAILABLE REVOLVING CREDIT FACILITIES (In billions)
|
March 31, 2020
|
|
December 31, 2019
|
|
||
|
|
|
||||
Unused back-up revolving syndicated credit facility
|
$
|
20.0
|
|
$
|
20.0
|
|
Unused revolving syndicated credit facility
|
14.8
|
|
14.8
|
|
||
Bilateral revolving credit facilities
|
7.2
|
|
7.2
|
|
||
Total committed revolving credit facilities
|
$
|
42.0
|
|
$
|
42.0
|
|
Less offset provisions
|
6.7
|
|
6.7
|
|
||
Total net available revolving credit facilities
|
$
|
35.3
|
|
$
|
35.3
|
|
(In billions)
|
GE Commercial Paper
|
|
Bilateral Revolving Credit Facilities
|
|
Total
|
|
|||
|
|
|
|
||||||
2020
|
|
|
|
||||||
Average borrowings during the first quarter
|
$
|
2.9
|
|
$
|
1.2
|
|
$
|
4.1
|
|
Maximum borrowings outstanding during the first quarter
|
3.4
|
|
1.5
|
|
4.7
|
|
|||
Ending balance at March 31
|
1.9
|
|
—
|
|
1.9
|
|
|||
|
|
|
|
||||||
2019
|
|
|
|
||||||
Average borrowings during the first quarter
|
$
|
3.2
|
|
$
|
1.3
|
|
$
|
4.4
|
|
Maximum borrowings outstanding during the first quarter
|
3.6
|
|
1.5
|
|
4.8
|
|
|||
Ending balance at March 31
|
3.0
|
|
—
|
|
3.0
|
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
(In billions)
|
Triggers Below
|
At March 31, 2020
|
|
|
|
|
|
||
Derivatives
|
|
|
||
Terminations
|
BBB/Baa2
|
$
|
(0.4
|
)
|
Cash margin posting
|
BBB/Baa2
|
(0.9
|
)
|
|
Receivables Sales Programs
|
|
|
||
Loss of cash commingling
|
A-2/P-2/F2
|
$
|
(0.6
|
)
|
Alternative funding sources
|
A-2/P-2/F2
|
(0.7
|
)
|
|
Surety bond cash collateral posting
|
BBB-/Baa3
|
$
|
(0.8
|
)
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
MD&A
|
CRITICAL ACCOUNTING ESTIMATES
|
•
|
Discount rate - A 25 basis point decrease in the discount rate would increase pension cost in the following year by about $0.2 billion and would increase the pension benefit obligation 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
|
NON-GAAP FINANCIAL MEASURES
|
BIOPHARMA ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN (NON-GAAP)
|
||||||||||||||||||||||||||||||
|
|
Revenues
|
|
Segment profit (loss)
|
|
Profit margin
|
||||||||||||||||||||||||
Three months ended March 31 (In millions)
|
|
2020
|
|
|
2019
|
|
|
V%
|
|
|
2020
|
|
|
2019
|
|
|
V%
|
|
|
2020
|
|
|
2019
|
|
V pts
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
BioPharma (GAAP)
|
|
$
|
830
|
|
|
$
|
765
|
|
|
9
|
%
|
|
$
|
382
|
|
|
$
|
312
|
|
|
22
|
%
|
|
46.0
|
%
|
|
40.8
|
%
|
5.2
|
pts
|
Less: acquisitions
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|||||||||
Less: business dispositions
|
|
—
|
|
|
3
|
|
|
|
|
—
|
|
|
1
|
|
|
|
|
|
|
|
|
|||||||||
Less: foreign currency effect
|
|
(9
|
)
|
|
—
|
|
|
|
|
2
|
|
|
—
|
|
|
|
|
|
|
|
|
|||||||||
BioPharma organic (Non-GAAP)
|
|
$
|
839
|
|
|
$
|
762
|
|
|
10
|
%
|
|
$
|
380
|
|
|
$
|
311
|
|
|
22
|
%
|
|
45.3
|
%
|
|
40.8
|
%
|
4.5
|
pts
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
GE INDUSTRIAL ORGANIC REVENUES (NON-GAAP)
|
Three months ended March 31
|
|||||||
(In millions)
|
2020
|
|
2019
|
|
V%
|
|
||
|
|
|
|
|||||
GE Industrial revenues (GAAP)
|
$
|
18,844
|
|
$
|
20,324
|
|
(7
|
)%
|
Adjustments:
|
|
|
|
|||||
Less: acquisitions
|
42
|
|
21
|
|
|
|||
Less: business dispositions(a)
|
28
|
|
380
|
|
|
|||
Less: foreign currency effect(b)
|
(166
|
)
|
—
|
|
|
|||
GE Industrial organic revenues (Non-GAAP)
|
$
|
18,941
|
|
$
|
19,923
|
|
(5
|
)%
|
|
|
|
|
|||||
Less: BioPharma organic revenue (Non-GAAP)
|
839
|
|
762
|
|
|
|||
GE Industrial organic revenues excluding BioPharma organic revenues (Non-GAAP)
|
$
|
18,101
|
|
$
|
19,162
|
|
(6
|
)%
|
|
|
|
|
|||||
(a) Dispositions impact in 2019 primarily related to our Aviation business including the Middle River and Hamble site dispositions, with revenues of $125 million and $55 million, respectively, and Current within our Corporate segment, with revenues of $155 million.
(b) Foreign currency impact primarily driven by U.S. Dollar appreciation against Euro, Brazilian Real and Chinese Yen.
|
||||||||
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.
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
ADJUSTED GE INDUSTRIAL ORGANIC PROFIT
|
Three months ended March 31
|
|||||||
(NON-GAAP) (In millions)
|
2020
|
|
2019
|
|
V%
|
|||
|
|
|
|
|||||
Adjusted GE Industrial profit (Non-GAAP)
|
$
|
1,096
|
|
$
|
2,017
|
|
(46)
|
%
|
Adjustments:
|
|
|
|
|||||
Less: acquisitions
|
2
|
|
(4
|
)
|
|
|
||
Less: business dispositions
|
(1
|
)
|
(21
|
)
|
|
|
||
Less: foreign currency effect
|
11
|
|
—
|
|
|
|
||
Adjusted GE Industrial organic profit (Non-GAAP)
|
$
|
1,084
|
|
$
|
2,041
|
|
(47)
|
%
|
|
|
|
|
|||||
Adjusted GE Industrial profit margin (Non-GAAP)
|
5.8
|
%
|
9.9
|
%
|
(410) bps
|
|
||
Adjusted GE Industrial organic profit margin (Non-GAAP)
|
5.7
|
%
|
10.2
|
%
|
(450) bps
|
|
||
|
|
|
|
|||||
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.
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
ADJUSTED EARNINGS (LOSS) PER SHARE (EPS)
|
Three months ended March 31
|
|||||||
(NON-GAAP)
|
2020
|
|
2019
|
|
V%
|
|
||
|
|
|
|
|||||
Consolidated EPS from continuing operations attributable to GE common shareholders (GAAP)
|
$
|
0.72
|
|
$
|
0.10
|
|
F
|
|
Less: GE Capital EPS from continuing operations attributable to GE common shareholders (GAAP)
|
—
|
|
0.02
|
|
|
|||
GE Industrial EPS (Non-GAAP)
|
0.73
|
|
0.09
|
|
F
|
|
||
Non-operating benefits costs (pre-tax) (GAAP)
|
(0.07
|
)
|
(0.06
|
)
|
|
|||
Tax effect on non-operating benefit costs
|
0.01
|
|
0.01
|
|
|
|||
Less: non-operating benefit costs (net of tax)
|
(0.06
|
)
|
(0.05
|
)
|
|
|||
Gains (losses) and impairments for disposed or held for sale businesses (pre-tax)(a)
|
1.42
|
|
0.04
|
|
|
|||
Tax effect on gains (losses) and impairments for disposed or held for sale businesses
|
(0.14
|
)
|
—
|
|
|
|||
Less: gains (losses) and impairments for disposed or held for sale businesses (net of tax)
|
1.28
|
|
0.04
|
|
|
|||
Restructuring & other (pre-tax)(b)
|
(0.02
|
)
|
(0.03
|
)
|
|
|||
Tax effect on restructuring & other
|
—
|
|
0.01
|
|
|
|||
Less: restructuring & other (net of tax)
|
(0.02
|
)
|
(0.02
|
)
|
|
|||
Unrealized gains (losses)(a)
|
(0.66
|
)
|
—
|
|
|
|||
Tax on unrealized gains (losses)
|
0.13
|
|
—
|
|
|
|||
Less: unrealized gains (losses)
|
(0.54
|
)
|
—
|
|
|
|||
BioPharma deal expense (pre-tax)
|
—
|
|
—
|
|
|
|||
Tax on BioPharma deal expense
|
—
|
|
—
|
|
|
|||
Less: BioPharma deal expense (net of tax)
|
—
|
|
—
|
|
|
|||
Less: GE Industrial U.S. tax reform enactment adjustment
|
—
|
|
(0.01
|
)
|
|
|||
Adjusted GE Industrial EPS (Non-GAAP)
|
$
|
0.06
|
|
$
|
0.13
|
|
(54
|
)%
|
|
|
|
|
|||||
GE Capital EPS from continuing operations attributable to GE common shareholders (GAAP)
|
—
|
|
0.02
|
|
(100
|
)%
|
||
Less: GE Capital U.S. tax reform enactment adjustment
|
—
|
|
0.01
|
|
|
|||
Less: GE Capital tax benefit related to BioPharma sale
|
0.01
|
|
—
|
|
|
|||
Adjusted GE Capital EPS (Non-GAAP)
|
$
|
(0.01
|
)
|
$
|
—
|
|
U
|
|
|
|
|
|
|||||
Adjusted GE Industrial EPS (Non-GAAP)
|
$
|
0.06
|
|
$
|
0.13
|
|
(54
|
)%
|
Add: Adjusted GE Capital EPS (Non-GAAP)
|
(0.01
|
)
|
—
|
|
U
|
|
||
Adjusted EPS (Non-GAAP)
|
$
|
0.05
|
|
$
|
0.13
|
|
(62
|
)%
|
|
|
|
|
|||||
(a) See the Corporate Items and Eliminations section for further information.
|
||||||||
(b) See the Corporate Items and Eliminations - Restructuring section for further information.
|
||||||||
Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.
|
||||||||
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 2020. 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 NET DEBT (NON-GAAP) (In millions)
|
March 31, 2020
|
|
December 31, 2019
|
|
||
|
|
|
||||
Total GE short- and long-term borrowings (GAAP)
|
$
|
48,132
|
|
$
|
52,059
|
|
Less: GE Capital short- and long-term debt assumed by GE
|
29,136
|
|
31,368
|
|
||
Add: intercompany loans from GE Capital
|
12,226
|
|
12,226
|
|
||
Total adjusted GE borrowings
|
$
|
31,222
|
|
$
|
32,917
|
|
Total pension and principal retiree benefit plan liabilities (pre-tax)(a)
|
27,773
|
|
27,773
|
|
||
Less: taxes at 21%
|
5,832
|
|
5,832
|
|
||
Total pension and principal retiree benefit plan liabilities (net of tax)
|
$
|
21,941
|
|
$
|
21,941
|
|
GE operating lease liabilities
|
3,266
|
|
3,369
|
|
||
GE preferred stock
|
5,782
|
|
5,738
|
|
||
Less: 50% of GE preferred stock
|
2,891
|
|
2,869
|
|
||
50% of preferred stock
|
$
|
2,891
|
|
$
|
2,869
|
|
Deduction for total GE cash, cash equivalents and restricted cash
|
(33,810
|
)
|
(17,613
|
)
|
||
Less: 25% of GE cash, cash equivalents and restricted cash
|
(8,453
|
)
|
(4,403
|
)
|
||
Deduction for 75% of GE cash, cash equivalents and restricted cash
|
$
|
(25,358
|
)
|
$
|
(13,210
|
)
|
Total GE Industrial net debt (Non-GAAP)
|
$
|
33,962
|
|
$
|
47,886
|
|
|
|
|
||||
(a) Represents the total net deficit status of principal pension plans, other pension plans and retiree benefit plans at December 31, 2019. The funded status of our benefit plans is updated annually in the fourth quarter.
|
||||||
|
||||||
In this document we use GE Industrial net debt*, which is calculated based on rating agency methodologies. We are including the calculation of GE industrial net debt* to provide investors more clarity regarding how the credit rating agencies measure GE Industrial leverage.
|
RISK FACTORS
|
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF EARNINGS (LOSS)
|
Three months ended March 31
|
|||||
(UNAUDITED)
|
Consolidated
|
|||||
(In millions; per-share amounts in dollars)
|
2020
|
|
2019
|
|
||
|
|
|
||||
Sales of goods
|
$
|
12,364
|
|
$
|
13,249
|
|
Sales of services
|
6,450
|
|
7,008
|
|
||
GE Capital revenues from services
|
1,709
|
|
1,945
|
|
||
Total revenues (Note 9)
|
20,524
|
|
22,202
|
|
||
|
|
|
||||
Cost of goods sold
|
10,540
|
|
10,974
|
|
||
Cost of services sold
|
5,156
|
|
5,234
|
|
||
Selling, general and administrative expenses
|
3,065
|
|
3,402
|
|
||
Interest and other financial charges
|
794
|
|
1,065
|
|
||
Insurance losses and annuity benefits
|
636
|
|
611
|
|
||
Non-operating benefit costs
|
619
|
|
569
|
|
||
Other costs and expenses
|
109
|
|
72
|
|
||
Total costs and expenses
|
20,918
|
|
21,927
|
|
||
|
|
|
||||
Other income (Note 23)
|
6,869
|
|
847
|
|
||
GE Capital earnings (loss) from continuing operations
|
—
|
|
—
|
|
||
|
|
|
||||
Earnings (loss) from continuing operations before income taxes
|
6,475
|
|
1,122
|
|
||
Benefit (provision) for income taxes
|
(63
|
)
|
(140
|
)
|
||
Earnings (loss) from continuing operations
|
6,412
|
|
983
|
|
||
Earnings (loss) from discontinued operations, net of taxes (Note 2)
|
(178
|
)
|
2,663
|
|
||
Net earnings (loss)
|
6,233
|
|
3,645
|
|
||
Less net earnings (loss) attributable to noncontrolling interests
|
34
|
|
57
|
|
||
Net earnings (loss) attributable to the Company
|
6,199
|
|
3,588
|
|
||
Preferred stock dividends
|
(43
|
)
|
(40
|
)
|
||
Net earnings (loss) attributable to GE common shareholders
|
$
|
6,156
|
|
$
|
3,549
|
|
|
|
|
||||
Amounts attributable to GE common shareholders
|
|
|
||||
Earnings (loss) from continuing operations
|
$
|
6,412
|
|
$
|
983
|
|
Less net earnings (loss) attributable to noncontrolling interests,
|
|
|
||||
continuing operations
|
36
|
|
23
|
|
||
Earnings (loss) from continuing operations attributable to the Company
|
6,375
|
|
960
|
|
||
Preferred stock dividends
|
(43
|
)
|
(40
|
)
|
||
Earnings (loss) from continuing operations attributable
|
|
|
||||
to GE common shareholders
|
6,332
|
|
920
|
|
||
Earnings (loss) from discontinued operations, net of taxes
|
(178
|
)
|
2,663
|
|
||
Less net earnings (loss) attributable to
|
|
|
||||
noncontrolling interests, discontinued operations
|
(2
|
)
|
34
|
|
||
Net earnings (loss) attributable to GE common shareholders
|
$
|
6,156
|
|
$
|
3,549
|
|
|
|
|
||||
Earnings (loss) per share from continuing operations (Note 16)
|
|
|
||||
Diluted earnings (loss) per share
|
$
|
0.72
|
|
$
|
0.10
|
|
Basic earnings (loss) per share
|
$
|
0.72
|
|
$
|
0.10
|
|
|
|
|
||||
Net earnings (loss) per share (Note 16)
|
|
|
||||
Diluted earnings (loss) per share
|
$
|
0.70
|
|
$
|
0.40
|
|
Basic earnings (loss) per share
|
$
|
0.70
|
|
$
|
0.41
|
|
|
|
|
||||
Dividends declared per common share
|
$
|
0.01
|
|
$
|
0.01
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF EARNINGS (LOSS) (CONTINUED)
|
Three months ended March 31
|
||||||||||||
(UNAUDITED)
|
GE(a)
|
|
GE Capital
|
||||||||||
(In millions; per-share amounts in dollars)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
|
|
|
|
|
|
||||||||
Sales of goods
|
$
|
12,359
|
|
$
|
13,315
|
|
|
$
|
24
|
|
$
|
16
|
|
Sales of services
|
6,486
|
|
7,009
|
|
|
—
|
|
—
|
|
||||
GE Capital revenues from services
|
—
|
|
—
|
|
|
1,899
|
|
2,210
|
|
||||
Total revenues
|
18,844
|
|
20,324
|
|
|
1,923
|
|
2,227
|
|
||||
|
|
|
|
|
|
||||||||
Cost of goods sold
|
10,541
|
|
11,049
|
|
|
17
|
|
13
|
|
||||
Cost of services sold
|
4,657
|
|
4,781
|
|
|
535
|
|
486
|
|
||||
Selling, general and administrative expenses
|
2,949
|
|
3,196
|
|
|
203
|
|
267
|
|
||||
Interest and other financial charges
|
370
|
|
520
|
|
|
504
|
|
677
|
|
||||
Insurance losses and annuity benefits
|
—
|
|
—
|
|
|
653
|
|
633
|
|
||||
Non-operating benefit costs
|
616
|
|
564
|
|
|
2
|
|
5
|
|
||||
Other costs and expenses
|
—
|
|
(8
|
)
|
|
119
|
|
99
|
|
||||
Total costs and expenses
|
19,133
|
|
20,101
|
|
|
2,033
|
|
2,180
|
|
||||
|
|
|
|
|
|
||||||||
Other income (Note 23)
|
6,874
|
|
852
|
|
|
—
|
|
—
|
|
||||
GE Capital earnings (loss) from continuing operations
|
(30
|
)
|
135
|
|
|
—
|
|
—
|
|
||||
|
|
|
|
|
|
||||||||
Earnings (loss) from continuing operations before income taxes
|
6,555
|
|
1,211
|
|
|
(110
|
)
|
47
|
|
||||
Benefit (provision) for income taxes
|
(187
|
)
|
(268
|
)
|
|
123
|
|
128
|
|
||||
Earnings (loss) from continuing operations
|
6,368
|
|
943
|
|
|
13
|
|
175
|
|
||||
Earnings (loss) from discontinued operations, net of taxes (Note 2)
|
(178
|
)
|
2,663
|
|
|
(164
|
)
|
35
|
|
||||
Net earnings (loss)
|
6,190
|
|
3,606
|
|
|
(151
|
)
|
210
|
|
||||
Less net earnings (loss) attributable to noncontrolling interests
|
34
|
|
57
|
|
|
—
|
|
—
|
|
||||
Net earnings (loss) attributable to the Company
|
6,156
|
|
3,549
|
|
|
(151
|
)
|
210
|
|
||||
Preferred stock dividends
|
—
|
|
—
|
|
|
(43
|
)
|
(40
|
)
|
||||
Net earnings (loss) attributable to GE common shareholders
|
$
|
6,156
|
|
$
|
3,549
|
|
|
$
|
(194
|
)
|
$
|
171
|
|
|
|
|
|
|
|
||||||||
Amounts attributable to GE common shareholders:
|
|
|
|
|
|
||||||||
Earnings (loss) from continuing operations
|
$
|
6,368
|
|
$
|
943
|
|
|
$
|
13
|
|
$
|
175
|
|
Less net earnings (loss) attributable to noncontrolling interests,
|
|
|
|
|
|
||||||||
continuing operations
|
36
|
|
23
|
|
|
—
|
|
—
|
|
||||
Earnings (loss) from continuing operations attributable to the Company
|
6,332
|
|
920
|
|
|
13
|
|
175
|
|
||||
Preferred stock dividends
|
—
|
|
—
|
|
|
(43
|
)
|
(40
|
)
|
||||
Earnings (loss) from continuing operations attributable
|
|
|
|
|
|
||||||||
to GE common shareholders
|
6,332
|
|
920
|
|
|
(30
|
)
|
135
|
|
||||
Earnings (loss) from discontinued operations, net of taxes
|
(178
|
)
|
2,663
|
|
|
(164
|
)
|
35
|
|
||||
Less net earnings (loss) attributable to
|
|
|
|
|
|
||||||||
noncontrolling interests, discontinued operations
|
(2
|
)
|
34
|
|
|
—
|
|
—
|
|
||||
Net earnings (loss) attributable to GE common shareholders
|
$
|
6,156
|
|
$
|
3,549
|
|
|
$
|
(194
|
)
|
$
|
171
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF FINANCIAL POSITION (UNAUDITED)
|
Consolidated
|
|||||
(In millions, except share amounts)
|
March 31, 2020
|
|
December 31, 2019
|
|
||
|
|
|
|
|||
Cash, cash equivalents and restricted cash
|
$
|
47,286
|
|
$
|
36,394
|
|
Investment securities (Note 3)
|
42,299
|
|
48,521
|
|
||
Current receivables (Note 4)
|
16,925
|
|
16,769
|
|
||
Financing receivables – net (Note 5)
|
2,998
|
|
3,134
|
|
||
Inventories (Note 6)
|
15,457
|
|
14,104
|
|
||
Other GE Capital receivables
|
7,505
|
|
7,144
|
|
||
Property, plant and equipment – net (Note 7)(a)
|
45,979
|
|
46,186
|
|
||
Receivable from GE Capital
|
—
|
|
—
|
|
||
Investment in GE Capital
|
—
|
|
—
|
|
||
Goodwill (Note 8)
|
26,598
|
|
26,734
|
|
||
Other intangible assets – net (Note 8)
|
10,381
|
|
10,653
|
|
||
Contract and other deferred assets (Note 10)
|
16,136
|
|
16,801
|
|
||
All other assets
|
15,841
|
|
16,461
|
|
||
Deferred income taxes (Note 14)
|
10,457
|
|
9,889
|
|
||
Assets of businesses held for sale (Note 2)
|
506
|
|
9,149
|
|
||
Assets of discontinued operations (Note 2)
|
3,653
|
|
4,109
|
|
||
Total assets
|
$
|
262,021
|
|
$
|
266,048
|
|
|
|
|
||||
Short-term borrowings (Note 11)
|
$
|
18,122
|
|
$
|
22,072
|
|
Short-term borrowings assumed by GE (Note 11)
|
—
|
|
—
|
|
||
Accounts payable, principally trade accounts
|
15,212
|
|
15,926
|
|
||
Progress collections and deferred income (Note 10)
|
19,818
|
|
20,508
|
|
||
Other GE current liabilities
|
16,290
|
|
15,753
|
|
||
Non-recourse borrowings of consolidated securitization entities (Note 11)
|
644
|
|
1,655
|
|
||
Long-term borrowings (Note 11)
|
66,388
|
|
67,155
|
|
||
Long-term borrowings assumed by GE (Note 11)
|
—
|
|
—
|
|
||
Insurance liabilities and annuity benefits (Note 12)
|
38,241
|
|
39,826
|
|
||
Non-current compensation and benefits
|
31,104
|
|
31,687
|
|
||
All other liabilities(a)
|
18,985
|
|
19,745
|
|
||
Liabilities of businesses held for sale (Note 2)
|
219
|
|
1,658
|
|
||
Liabilities of discontinued operations (Note 2)
|
139
|
|
203
|
|
||
Total liabilities
|
225,162
|
|
236,187
|
|
||
|
|
|
||||
Preferred stock (5,939,875 shares outstanding at both March 31, 2020
and December 31, 2019) |
6
|
|
6
|
|
||
Common stock (8,747,092,000 and 8,738,434,000 shares outstanding
at March 31, 2020 and December 31, 2019, respectively) |
702
|
|
702
|
|
||
Accumulated other comprehensive income (loss) – net attributable to GE
|
(10,819
|
)
|
(11,732
|
)
|
||
Other capital
|
34,296
|
|
34,405
|
|
||
Retained earnings
|
93,615
|
|
87,732
|
|
||
Less common stock held in treasury
|
(82,516
|
)
|
(82,797
|
)
|
||
Total GE shareholders’ equity
|
35,284
|
|
28,316
|
|
||
Noncontrolling interests
|
1,575
|
|
1,545
|
|
||
Total equity
|
36,859
|
|
29,861
|
|
||
Total liabilities and equity
|
$
|
262,021
|
|
$
|
266,048
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF FINANCIAL POSITION (CONTINUED)
|
GE(a)
|
|
GE Capital
|
||||||||||
(UNAUDITED) (In millions, except share amounts)
|
March 31,
2020 |
|
December 31, 2019
|
|
|
March 31,
2020 |
|
December 31, 2019
|
|
||||
|
|
|
|
|
|
||||||||
Cash, cash equivalents and restricted cash
|
$
|
33,810
|
|
$
|
17,613
|
|
|
$
|
13,475
|
|
$
|
18,781
|
|
Investment securities (Note 3)
|
4,184
|
|
10,008
|
|
|
38,117
|
|
38,514
|
|
||||
Current receivables (Note 4)
|
13,076
|
|
13,883
|
|
|
—
|
|
—
|
|
||||
Financing receivables - net (Note 5)
|
—
|
|
—
|
|
|
7,457
|
|
6,979
|
|
||||
Inventories (Note 6)
|
15,457
|
|
14,104
|
|
|
—
|
|
—
|
|
||||
Other GE Capital receivables
|
—
|
|
—
|
|
|
10,764
|
|
11,767
|
|
||||
Property, plant and equipment – net (Note 7)(b)
|
17,088
|
|
17,447
|
|
|
30,058
|
|
29,886
|
|
||||
Receivable from GE Capital
|
16,909
|
|
19,142
|
|
|
—
|
|
—
|
|
||||
Investment in GE Capital
|
14,965
|
|
15,299
|
|
|
—
|
|
—
|
|
||||
Goodwill (Note 8)
|
25,759
|
|
25,895
|
|
|
839
|
|
839
|
|
||||
Other intangible assets – net (Note 8)
|
10,212
|
|
10,461
|
|
|
169
|
|
192
|
|
||||
Contract and other deferred assets (Note 10)
|
16,168
|
|
16,833
|
|
|
—
|
|
—
|
|
||||
All other assets
|
8,380
|
|
8,399
|
|
|
8,200
|
|
8,648
|
|
||||
Deferred income taxes (Note 14)
|
8,654
|
|
8,189
|
|
|
1,803
|
|
1,700
|
|
||||
Assets of businesses held for sale (Note 2)
|
43
|
|
8,626
|
|
|
247
|
|
241
|
|
||||
Assets of discontinued operations (Note 2)
|
156
|
|
202
|
|
|
3,497
|
|
3,907
|
|
||||
Total assets
|
$
|
184,861
|
|
$
|
186,100
|
|
|
$
|
114,626
|
|
$
|
121,454
|
|
|
|
|
|
|
|
||||||||
Short-term borrowings (Note 11)
|
$
|
3,999
|
|
$
|
5,606
|
|
|
$
|
8,833
|
|
$
|
12,030
|
|
Short-term borrowings assumed by GE (Note 11)
|
5,888
|
|
5,473
|
|
|
2,519
|
|
2,104
|
|
||||
Accounts payable, principally trade accounts
|
16,004
|
|
17,702
|
|
|
1,054
|
|
886
|
|
||||
Progress collections and deferred income (Note 10)
|
19,986
|
|
20,694
|
|
|
—
|
|
—
|
|
||||
Other GE current liabilities
|
17,186
|
|
16,833
|
|
|
—
|
|
—
|
|
||||
Non-recourse borrowings of consolidated securitization entities (Note 11)
|
—
|
|
—
|
|
|
644
|
|
1,655
|
|
||||
Long-term borrowings (Note 11)
|
14,997
|
|
15,085
|
|
|
28,144
|
|
26,175
|
|
||||
Long-term borrowings assumed by GE (Note 11)
|
23,247
|
|
25,895
|
|
|
14,390
|
|
17,038
|
|
||||
Insurance liabilities and annuity benefits (Note 12)
|
—
|
|
—
|
|
|
38,729
|
|
40,232
|
|
||||
Non-current compensation and benefits
|
30,649
|
|
31,208
|
|
|
447
|
|
472
|
|
||||
All other liabilities(b)
|
15,911
|
|
16,156
|
|
|
4,664
|
|
5,278
|
|
||||
Liabilities of businesses held for sale (Note 2)
|
181
|
|
1,620
|
|
|
52
|
|
52
|
|
||||
Liabilities of discontinued operations (Note 2)
|
108
|
|
106
|
|
|
31
|
|
97
|
|
||||
Total liabilities
|
148,157
|
|
156,379
|
|
|
99,507
|
|
106,016
|
|
||||
|
|
|
|
|
|
||||||||
Preferred stock (5,939,875 shares outstanding at both March 31, 2020
and December 31, 2019) |
6
|
|
6
|
|
|
6
|
|
6
|
|
||||
Common stock (8,747,092,000 and 8,738,434,000 shares outstanding
at March 31, 2020 and December 31, 2019, respectively) |
702
|
|
702
|
|
|
—
|
|
—
|
|
||||
Accumulated other comprehensive income (loss) - net attributable to GE
|
(10,819
|
)
|
(11,732
|
)
|
|
(986
|
)
|
(852
|
)
|
||||
Other capital
|
34,296
|
|
34,405
|
|
|
17,003
|
|
17,001
|
|
||||
Retained earnings
|
93,615
|
|
87,732
|
|
|
(1,058
|
)
|
(857
|
)
|
||||
Less common stock held in treasury
|
(82,516
|
)
|
(82,797
|
)
|
|
—
|
|
—
|
|
||||
Total GE shareholders’ equity
|
35,284
|
|
28,316
|
|
|
14,965
|
|
15,299
|
|
||||
Noncontrolling interests
|
1,421
|
|
1,406
|
|
|
154
|
|
139
|
|
||||
Total equity
|
36,705
|
|
29,721
|
|
|
15,119
|
|
15,438
|
|
||||
Total liabilities and equity
|
$
|
184,861
|
|
$
|
186,100
|
|
|
$
|
114,626
|
|
$
|
121,454
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF CASH FLOWS
|
Three months ended March 31
|
|||||
(UNAUDITED)
|
Consolidated
|
|||||
(In millions)
|
2020
|
|
2019
|
|
||
|
|
|
||||
Net earnings (loss)
|
$
|
6,233
|
|
$
|
3,645
|
|
(Earnings) loss from discontinued operations
|
178
|
|
(2,663
|
)
|
||
Adjustments to reconcile net earnings (loss)
|
|
|
||||
to cash provided from operating activities
|
|
|
||||
Depreciation and amortization of property, plant and equipment (Note 7)
|
991
|
|
995
|
|
||
Amortization of intangible assets (Note 8)
|
340
|
|
367
|
|
||
(Earnings) loss from continuing operations retained by GE Capital
|
—
|
|
—
|
|
||
(Gains) losses on purchases and sales of business interests (Note 23)
|
(12,372
|
)
|
(253
|
)
|
||
(Gains) losses on equity securities (Note 23)
|
5,874
|
|
(20
|
)
|
||
Principal pension plans cost (Note 13)
|
877
|
|
868
|
|
||
Principal pension plans employer contributions
|
(70
|
)
|
(65
|
)
|
||
Other postretirement benefit plans (net)
|
(254
|
)
|
(289
|
)
|
||
Provision (benefit) for income taxes
|
63
|
|
140
|
|
||
Cash recovered (paid) during the year for income taxes
|
(310
|
)
|
(280
|
)
|
||
Decrease (increase) in contract and other deferred assets
|
(12
|
)
|
(680
|
)
|
||
Decrease (increase) in GE current receivables
|
(503
|
)
|
545
|
|
||
Decrease (increase) in inventories
|
(978
|
)
|
(1,165
|
)
|
||
Increase (decrease) in accounts payable
|
(601
|
)
|
215
|
|
||
Increase (decrease) in GE progress collections
|
(655
|
)
|
(331
|
)
|
||
All other operating activities
|
1,050
|
|
(609
|
)
|
||
Cash from (used for) operating activities – continuing operations
|
(148
|
)
|
420
|
|
||
Cash from (used for) operating activities – discontinued operations
|
(67
|
)
|
(298
|
)
|
||
Cash from (used for) operating activities
|
(214
|
)
|
122
|
|
||
|
|
|
||||
Additions to property, plant and equipment
|
(1,027
|
)
|
(1,395
|
)
|
||
Dispositions of property, plant and equipment
|
731
|
|
1,068
|
|
||
Additions to internal-use software
|
(60
|
)
|
(69
|
)
|
||
Net decrease (increase) in financing receivables
|
(50
|
)
|
353
|
|
||
Proceeds from sale of discontinued operations
|
—
|
|
2,865
|
|
||
Proceeds from principal business dispositions
|
20,488
|
|
569
|
|
||
Net cash from (payments for) principal businesses purchased
|
(6
|
)
|
—
|
|
||
All other investing activities
|
(856
|
)
|
305
|
|
||
Cash from (used for) investing activities – continuing operations
|
19,221
|
|
3,696
|
|
||
Cash from (used for) investing activities – discontinued operations
|
(134
|
)
|
(206
|
)
|
||
Cash from (used for) investing activities
|
19,086
|
|
3,490
|
|
||
|
|
|
||||
Net increase (decrease) in borrowings (maturities of 90 days or less)
|
(1,905
|
)
|
(445
|
)
|
||
Newly issued debt (maturities longer than 90 days)
|
125
|
|
731
|
|
||
Repayments and other debt reductions (maturities longer than 90 days)
|
(5,903
|
)
|
(3,546
|
)
|
||
Dividends paid to shareholders
|
(89
|
)
|
(88
|
)
|
||
All other financing activities
|
(147
|
)
|
(113
|
)
|
||
Cash from (used for) financing activities – continuing operations
|
(7,919
|
)
|
(3,461
|
)
|
||
Cash from (used for) financing activities – discontinued operations
|
—
|
|
(274
|
)
|
||
Cash from (used for) financing activities
|
(7,919
|
)
|
(3,735
|
)
|
||
Effect of currency exchange rate changes on cash, cash equivalents and
restricted cash
|
(256
|
)
|
78
|
|
||
Increase (decrease) in cash, cash equivalents and restricted cash
|
10,697
|
|
(45
|
)
|
||
Cash, cash equivalents and restricted cash at beginning of year
|
37,077
|
|
35,548
|
|
||
Cash, cash equivalents and restricted cash at March 31
|
47,774
|
|
35,503
|
|
||
Less cash, cash equivalents and restricted cash of discontinued operations at March 31
|
437
|
|
3,671
|
|
||
Cash, cash equivalents and restricted cash of continuing operations at March 31
|
$
|
47,338
|
|
$
|
31,832
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF CASH FLOWS (CONTINUED)
|
Three months ended March 31
|
||||||||||||
(UNAUDITED)
|
GE(a)
|
|
GE Capital
|
||||||||||
(In millions)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
|
|
|
|
|
|
||||||||
Net earnings (loss)
|
$
|
6,190
|
|
$
|
3,606
|
|
|
$
|
(151
|
)
|
$
|
210
|
|
(Earnings) loss from discontinued operations
|
178
|
|
(2,663
|
)
|
|
164
|
|
(35
|
)
|
||||
Adjustments to reconcile net earnings (loss)
|
|
|
|
|
|
||||||||
to cash provided from operating activities
|
|
|
|
|
|
||||||||
Depreciation and amortization of property, plant and equipment (Note 7)
|
453
|
|
505
|
|
|
536
|
|
488
|
|
||||
Amortization of intangible assets (Note 8)
|
315
|
|
353
|
|
|
25
|
|
13
|
|
||||
(Earnings) loss from continuing operations retained by GE Capital
|
30
|
|
(135
|
)
|
|
—
|
|
—
|
|
||||
(Gains) losses on purchases and sales of business interests (Note 23)
|
(12,372
|
)
|
(253
|
)
|
|
—
|
|
—
|
|
||||
(Gains) losses on equity securities (Note 23)
|
5,789
|
|
(20
|
)
|
|
86
|
|
(1
|
)
|
||||
Principal pension plans cost (Note 13)
|
877
|
|
868
|
|
|
—
|
|
—
|
|
||||
Principal pension plans employer contributions
|
(70
|
)
|
(65
|
)
|
|
—
|
|
—
|
|
||||
Other postretirement benefit plans (net)
|
(247
|
)
|
(292
|
)
|
|
(8
|
)
|
3
|
|
||||
Provision (benefit) for income taxes
|
187
|
|
268
|
|
|
(123
|
)
|
(128
|
)
|
||||
Cash recovered (paid) during the year for income taxes
|
(278
|
)
|
(272
|
)
|
|
(32
|
)
|
(8
|
)
|
||||
Decrease (increase) in contract and other deferred assets
|
(12
|
)
|
(680
|
)
|
|
—
|
|
—
|
|
||||
Decrease (increase) in GE current receivables
|
487
|
|
(57
|
)
|
|
—
|
|
—
|
|
||||
Decrease (increase) in inventories
|
(966
|
)
|
(1,088
|
)
|
|
—
|
|
—
|
|
||||
Increase (decrease) in accounts payable
|
(1,468
|
)
|
(2
|
)
|
|
(5
|
)
|
(41
|
)
|
||||
Increase (decrease) in GE progress collections
|
(673
|
)
|
(343
|
)
|
|
—
|
|
—
|
|
||||
All other operating activities
|
(82
|
)
|
(336
|
)
|
|
784
|
|
(451
|
)
|
||||
Cash from (used for) operating activities – continuing operations
|
(1,662
|
)
|
(607
|
)
|
|
1,276
|
|
50
|
|
||||
Cash from (used for) operating activities – discontinued operations
|
29
|
|
(528
|
)
|
|
(95
|
)
|
(86
|
)
|
||||
Cash from (used for) operating activities
|
(1,633
|
)
|
(1,135
|
)
|
|
1,181
|
|
(36
|
)
|
||||
|
|
|
|
|
|
||||||||
Additions to property, plant and equipment
|
(504
|
)
|
(552
|
)
|
|
(541
|
)
|
(911
|
)
|
||||
Dispositions of property, plant and equipment
|
29
|
|
79
|
|
|
709
|
|
993
|
|
||||
Additions to internal-use software
|
(58
|
)
|
(66
|
)
|
|
(1
|
)
|
(3
|
)
|
||||
Net decrease (increase) in financing receivables
|
—
|
|
—
|
|
|
(506
|
)
|
1,673
|
|
||||
Proceeds from sale of discontinued operations
|
—
|
|
2,865
|
|
|
—
|
|
—
|
|
||||
Proceeds from principal business dispositions
|
20,505
|
|
561
|
|
|
(16
|
)
|
396
|
|
||||
Net cash from (payments for) principal businesses purchased
|
(6
|
)
|
(396
|
)
|
|
—
|
|
—
|
|
||||
All other investing activities
|
81
|
|
(245
|
)
|
|
300
|
|
1,655
|
|
||||
Cash from (used for) investing activities – continuing operations
|
20,046
|
|
2,246
|
|
|
(56
|
)
|
3,802
|
|
||||
Cash from (used for) investing activities – discontinued operations
|
(33
|
)
|
(42
|
)
|
|
(101
|
)
|
152
|
|
||||
Cash from (used for) investing activities
|
20,013
|
|
2,204
|
|
|
(157
|
)
|
3,954
|
|
||||
|
|
|
|
|
|
||||||||
Net increase (decrease) in borrowings (maturities of 90 days or less)
|
(1,881
|
)
|
(1,170
|
)
|
|
(514
|
)
|
(612
|
)
|
||||
Newly issued debt (maturities longer than 90 days)
|
1
|
|
248
|
|
|
124
|
|
483
|
|
||||
Repayments and other debt reductions (maturities longer than 90 days)
|
(64
|
)
|
(290
|
)
|
|
(5,840
|
)
|
(3,255
|
)
|
||||
Dividends paid to shareholders
|
(89
|
)
|
(88
|
)
|
|
(42
|
)
|
(38
|
)
|
||||
All other financing activities
|
(12
|
)
|
(18
|
)
|
|
(135
|
)
|
(95
|
)
|
||||
Cash from (used for) financing activities – continuing operations
|
(2,045
|
)
|
(1,318
|
)
|
|
(6,406
|
)
|
(3,518
|
)
|
||||
Cash from (used for) financing activities – discontinued operations
|
—
|
|
(273
|
)
|
|
—
|
|
(1
|
)
|
||||
Cash from (used for) financing activities
|
(2,045
|
)
|
(1,592
|
)
|
|
(6,406
|
)
|
(3,519
|
)
|
||||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash
|
(143
|
)
|
68
|
|
|
(113
|
)
|
10
|
|
||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
16,193
|
|
(455
|
)
|
|
(5,495
|
)
|
409
|
|
||||
Cash, cash equivalents and restricted cash at beginning of year
|
17,617
|
|
20,528
|
|
|
19,460
|
|
15,020
|
|
||||
Cash, cash equivalents and restricted cash at March 31
|
33,810
|
|
20,073
|
|
|
13,964
|
|
15,429
|
|
||||
Less cash, cash equivalents and restricted cash of discontinued operations
at March 31 |
—
|
|
3,078
|
|
|
437
|
|
593
|
|
||||
Cash, cash equivalents and restricted cash of continuing operations
at March 31 |
$
|
33,810
|
|
$
|
16,996
|
|
|
$
|
13,527
|
|
$
|
14,836
|
|
FINANCIAL STATEMENTS
|
|
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
|
Three months ended March 31
|
|||||
(In millions, net of tax)
|
2020
|
|
2019
|
|
||
|
|
|
||||
Net earnings (loss)
|
$
|
6,233
|
|
$
|
3,645
|
|
Less net earnings (loss) attributable to noncontrolling interests
|
34
|
|
57
|
|
||
Net earnings (loss) attributable to the Company
|
$
|
6,199
|
|
$
|
3,588
|
|
|
|
|
||||
Investment securities
|
$
|
(41
|
)
|
$
|
24
|
|
Currency translation adjustments
|
135
|
|
423
|
|
||
Cash flow hedges
|
(211
|
)
|
38
|
|
||
Benefit plans
|
1,035
|
|
545
|
|
||
Other comprehensive income (loss)
|
918
|
|
1,031
|
|
||
Less: other comprehensive income (loss) attributable to noncontrolling interests
|
5
|
|
101
|
|
||
Other comprehensive income (loss) attributable to the Company
|
$
|
913
|
|
$
|
930
|
|
|
|
|
||||
Comprehensive income (loss)
|
$
|
7,152
|
|
$
|
4,675
|
|
Less: comprehensive income (loss) attributable to noncontrolling interests
|
39
|
|
158
|
|
||
Comprehensive income (loss) attributable to the Company
|
$
|
7,113
|
|
$
|
4,517
|
|
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)
|
Three months ended March 31
|
||||||
(In millions)
|
2020
|
|
|
2019
|
|
||
|
|
|
|
||||
Preferred stock issued
|
$
|
6
|
|
|
$
|
6
|
|
Common stock issued
|
$
|
702
|
|
|
$
|
702
|
|
|
|
|
|
||||
Beginning balance
|
(11,732
|
)
|
|
(14,414
|
)
|
||
Investment securities
|
(41
|
)
|
|
23
|
|
||
Currency translation adjustments
|
133
|
|
|
324
|
|
||
Cash flow hedges
|
(211
|
)
|
|
35
|
|
||
Benefit plans
|
1,032
|
|
|
547
|
|
||
Accumulated other comprehensive income (loss) ending balance
|
$
|
(10,819
|
)
|
|
$
|
(13,485
|
)
|
Beginning balance
|
34,405
|
|
|
35,504
|
|
||
Gains (losses) on treasury stock dispositions
|
(249
|
)
|
|
(507
|
)
|
||
Stock-based compensation
|
105
|
|
|
137
|
|
||
Other changes
|
35
|
|
|
(788
|
)
|
||
Other capital ending balance
|
$
|
34,296
|
|
|
$
|
34,345
|
|
Beginning balance
|
87,732
|
|
|
93,109
|
|
||
Net earnings (loss) attributable to the Company
|
6,199
|
|
|
3,588
|
|
||
Dividends and other transactions with shareholders
|
(142
|
)
|
|
(145
|
)
|
||
Changes in accounting (Note 1)
|
(175
|
)
|
|
368
|
|
||
Retained earnings ending balance
|
$
|
93,615
|
|
|
$
|
96,921
|
|
Beginning balance
|
(82,797
|
)
|
|
(83,925
|
)
|
||
Purchases
|
(14
|
)
|
|
(38
|
)
|
||
Dispositions
|
295
|
|
|
636
|
|
||
Common stock held in treasury ending balance
|
$
|
(82,516
|
)
|
|
$
|
(83,328
|
)
|
GE shareholders' equity balance
|
35,284
|
|
|
35,161
|
|
||
Noncontrolling interests balance (Note 15)
|
1,575
|
|
|
20,485
|
|
||
Total equity balance at March 31(a)
|
$
|
36,859
|
|
|
$
|
55,646
|
|
(a)
|
Total equity balance decreased by $(18,787) million in the last twelve months from March 31, 2019, primarily due to reduction of non-controlling interest balance of $(19,271) million attributable to Baker Hughes Class A shareholders at March 31, 2019, after-tax loss of $(8,238) million in discontinued operations due to deconsolidation of Baker Hughes in the third quarter of 2019, after-tax change in unrealized loss on our remaining interest in Baker Hughes $(4,631) million, partially offset by after-tax gain of $11,145 million due to the sale of our BioPharma business within our Healthcare segment. See Notes 2 and 3 for further information.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE (In millions)
|
March 31, 2020
|
|
December 31, 2019
|
|
||
|
|
|
|
|||
Current receivables
|
$
|
217
|
|
$
|
499
|
|
Inventories
|
160
|
|
712
|
|
||
Financing receivables held for sale
|
197
|
|
197
|
|
||
Property, plant, and equipment
|
77
|
|
958
|
|
||
Goodwill and Other intangible assets - net
|
169
|
|
6,286
|
|
||
Valuation allowance
|
(412
|
)
|
(719
|
)
|
||
Deferred income taxes
|
—
|
|
815
|
|
||
All other assets
|
97
|
|
400
|
|
||
Assets of businesses held for sale
|
$
|
506
|
|
$
|
9,149
|
|
|
|
|
||||
Accounts payable & Progress collections and deferred income
|
$
|
135
|
|
$
|
843
|
|
Non-current compensation and benefits
|
—
|
|
466
|
|
||
All other liabilities
|
84
|
|
349
|
|
||
Liabilities of businesses held for sale
|
$
|
219
|
|
$
|
1,658
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
RESULTS OF DISCONTINUED OPERATIONS
(In millions)
|
Baker Hughes
|
|
Transportation
|
|
GE Capital
|
|
Total
|
||||||||||||||||||||
Three months ended March 31
|
2020
|
2019
|
|
2020
|
2019
|
|
2020
|
2019
|
|
2020
|
2019
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Operations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sales of goods and services
|
$
|
—
|
|
$
|
5,616
|
|
|
$
|
—
|
|
$
|
549
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
6,165
|
|
GE Capital revenues from services
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
(76
|
)
|
39
|
|
|
(76
|
)
|
39
|
|
||||||||
Cost of goods and services sold
|
—
|
|
(4,677
|
)
|
|
—
|
|
(478
|
)
|
|
—
|
|
—
|
|
|
—
|
|
(5,155
|
)
|
||||||||
Other costs and expenses
|
—
|
|
(787
|
)
|
|
(4
|
)
|
(9
|
)
|
|
(85
|
)
|
(74
|
)
|
|
(89
|
)
|
(870
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Earnings (loss) of discontinued operations before income taxes
|
—
|
|
152
|
|
|
(4
|
)
|
62
|
|
|
(161
|
)
|
(35
|
)
|
|
(165
|
)
|
179
|
|
||||||||
Benefit (provision) for income taxes
|
(13
|
)
|
(82
|
)
|
|
7
|
|
(12
|
)
|
|
(3
|
)
|
25
|
|
|
(9
|
)
|
(70
|
)
|
||||||||
Earnings (loss) of discontinued operations, net of taxes(a)
|
$
|
(13
|
)
|
$
|
70
|
|
|
$
|
3
|
|
$
|
50
|
|
|
$
|
(164
|
)
|
$
|
(10
|
)
|
|
$
|
(174
|
)
|
$
|
109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Disposal
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gain (loss) on disposal before income taxes
|
(4
|
)
|
—
|
|
|
—
|
|
3,471
|
|
|
—
|
|
47
|
|
|
(4
|
)
|
3,518
|
|
||||||||
Benefit (provision) for income taxes
|
—
|
|
—
|
|
|
—
|
|
(963
|
)
|
|
—
|
|
(2
|
)
|
|
—
|
|
(964
|
)
|
||||||||
Gain (loss) on disposal, net of taxes
|
$
|
(4
|
)
|
$
|
—
|
|
|
$
|
—
|
|
$
|
2,508
|
|
|
$
|
—
|
|
$
|
45
|
|
|
$
|
(4
|
)
|
$
|
2,553
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(17
|
)
|
$
|
70
|
|
|
$
|
3
|
|
$
|
2,558
|
|
|
$
|
(164
|
)
|
$
|
35
|
|
|
$
|
(178
|
)
|
$
|
2,663
|
|
ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS (In millions)
|
March 31, 2020
|
|
December 31, 2019
|
|
||
|
|
|
||||
Cash, cash equivalents and restricted cash
|
$
|
437
|
|
$
|
638
|
|
Investment securities
|
170
|
|
202
|
|
||
Current receivables
|
63
|
|
81
|
|
||
Financing receivables held for sale (Polish mortgage portfolio)
|
2,371
|
|
2,485
|
|
||
Property, plant, and equipment
|
117
|
|
123
|
|
||
Deferred income taxes
|
211
|
|
264
|
|
||
All other assets
|
285
|
|
317
|
|
||
Assets of discontinued operations
|
$
|
3,653
|
|
$
|
4,109
|
|
|
|
|
||||
Accounts payable & Progress collections and deferred income
|
$
|
22
|
|
$
|
40
|
|
All other liabilities (a)
|
117
|
|
163
|
|
||
Liabilities of discontinued operations
|
$
|
139
|
|
$
|
203
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||||||
(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
|
$
|
23,167
|
|
$
|
3,795
|
|
$
|
(493
|
)
|
$
|
26,470
|
|
|
$
|
23,037
|
|
$
|
4,636
|
|
$
|
(11
|
)
|
$
|
27,661
|
|
Non-U.S. corporate
|
2,155
|
|
150
|
|
(60
|
)
|
2,246
|
|
|
2,161
|
|
260
|
|
(1
|
)
|
2,420
|
|
||||||||
State and municipal
|
3,090
|
|
638
|
|
(21
|
)
|
3,708
|
|
|
3,086
|
|
598
|
|
(15
|
)
|
3,669
|
|
||||||||
Mortgage and asset-backed
|
3,296
|
|
51
|
|
(143
|
)
|
3,205
|
|
|
3,117
|
|
116
|
|
(4
|
)
|
3,229
|
|
||||||||
Government and agencies
|
1,269
|
|
157
|
|
—
|
|
1,427
|
|
|
1,391
|
|
126
|
|
—
|
|
1,516
|
|
||||||||
Equity
|
5,245
|
|
—
|
|
—
|
|
5,245
|
|
|
10,025
|
|
—
|
|
—
|
|
10,025
|
|
||||||||
Total
|
$
|
38,223
|
|
$
|
4,792
|
|
$
|
(716
|
)
|
$
|
42,299
|
|
|
$
|
42,816
|
|
$
|
5,736
|
|
$
|
(31
|
)
|
$
|
48,521
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
(In millions)
|
Amortized
cost
|
|
Estimated
fair value
|
|
||
|
|
|
||||
Due
|
|
|
||||
Within one year
|
$
|
610
|
|
$
|
621
|
|
After one year through five years
|
2,328
|
|
2,400
|
|
||
After five years through ten years
|
6,616
|
|
7,226
|
|
||
After ten years
|
20,128
|
|
23,603
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
CURRENT RECEIVABLES
|
Consolidated
|
|
GE
|
||||||||||
(In millions)
|
March 31, 2020
|
|
December 31, 2019
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
||||
|
|
|
|
|
|
||||||||
Customer receivables(a)
|
$
|
12,877
|
|
$
|
12,594
|
|
|
$
|
8,920
|
|
$
|
9,507
|
|
Sundry receivables(b)
|
4,976
|
|
5,049
|
|
|
5,082
|
|
5,247
|
|
||||
Allowance for losses
|
(929
|
)
|
(874
|
)
|
|
(926
|
)
|
(872
|
)
|
||||
Total current receivables
|
$
|
16,925
|
|
$
|
16,769
|
|
|
$
|
13,076
|
|
$
|
13,883
|
|
(In millions)
|
2020
|
|
2019
|
||||||||||||
|
GE Capital
|
|
|
Third Parties
|
|
GE Capital
|
|
|
Third Parties
|
||||||
|
|
|
|
|
|
|
|
||||||||
Balance at January 1
|
$
|
3,087
|
|
|
$
|
6,757
|
|
|
$
|
4,386
|
|
|
$
|
7,880
|
|
GE sales to GE Capital
|
9,225
|
|
|
—
|
|
|
9,690
|
|
|
—
|
|
||||
GE sales to third parties
|
—
|
|
|
515
|
|
|
—
|
|
|
1,376
|
|
||||
GE Capital sales to third parties
|
(5,253
|
)
|
|
5,253
|
|
|
(6,591
|
)
|
|
6,591
|
|
||||
Collections and other
|
(3,224
|
)
|
|
(8,005
|
)
|
|
(3,967
|
)
|
|
(8,123
|
)
|
||||
Reclassification from long-term customer receivables
|
123
|
|
|
—
|
|
|
140
|
|
|
—
|
|
||||
Balance at March 31
|
$
|
3,958
|
|
(a)(b)
|
$
|
4,519
|
|
|
$
|
3,657
|
|
(a)
|
$
|
7,724
|
|
|
Consolidated
|
|
GE
|
||||||||||
(In millions)
|
March 31, 2020
|
|
December 31, 2019
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
||||
|
|
|
|
|
|
||||||||
Long-term customer receivables(a)
|
$
|
756
|
|
$
|
906
|
|
|
$
|
492
|
|
$
|
506
|
|
Long-term sundry receivables(b)
|
1,437
|
|
1,504
|
|
|
1,647
|
|
1,834
|
|
||||
Allowance for losses
|
(131
|
)
|
(128
|
)
|
|
(131
|
)
|
(128
|
)
|
||||
Total long-term receivables
|
$
|
2,063
|
|
$
|
2,282
|
|
|
$
|
2,008
|
|
$
|
2,212
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
Three months ended March 31 (In millions)
|
2020
|
|
|
2019
|
|
||
|
|
|
|
||||
Customer receivables sold to receivables facilities
|
$
|
4,307
|
|
|
$
|
5,175
|
|
Total cash purchase price for customer receivables
|
4,120
|
|
|
5,071
|
|
||
Cash collections re-invested to purchase customer receivables
|
3,723
|
|
|
4,253
|
|
||
|
|
|
|
||||
Non-cash increases to deferred purchase price
|
$
|
160
|
|
|
$
|
44
|
|
Cash payments received on deferred purchase price
|
78
|
|
|
61
|
|
|
Consolidated
|
|
GE Capital
|
||||||||||
(In millions)
|
March 31, 2020
|
|
December 31, 2019
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
||||
|
|
|
|
|
|
||||||||
Loans, net of deferred income
|
$
|
1,141
|
|
$
|
1,098
|
|
|
$
|
5,568
|
|
$
|
4,927
|
|
Investment in financing leases, net of deferred income
|
1,921
|
|
2,070
|
|
|
1,921
|
|
2,070
|
|
||||
|
3,062
|
|
3,168
|
|
|
7,489
|
|
6,996
|
|
||||
Allowance for losses
|
(65
|
)
|
(33
|
)
|
|
(33
|
)
|
(17
|
)
|
||||
Financing receivables – net
|
$
|
2,998
|
|
$
|
3,134
|
|
|
$
|
7,457
|
|
$
|
6,979
|
|
(In millions)
|
March 31, 2020
|
|
December 31, 2019
|
|
||
|
|
|
||||
Raw materials and work in process
|
$
|
9,192
|
|
$
|
8,771
|
|
Finished goods
|
6,265
|
|
5,333
|
|
||
Total inventories
|
$
|
15,457
|
|
$
|
14,104
|
|
PROPERTY, PLANT AND EQUIPMENT (In millions)
|
March 31, 2020
|
|
December 31, 2019
|
|
||
|
|
|
||||
Original cost
|
$
|
75,619
|
|
$
|
75,187
|
|
Less accumulated depreciation and amortization
|
(32,453
|
)
|
(31,897
|
)
|
||
Property, plant and equipment – net
|
$
|
43,166
|
|
$
|
43,290
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
OPERATING LEASE EXPENSE
|
Three months ended March 31
|
||||||
(In millions)
|
2020
|
|
|
2019
|
|
||
|
|
|
|
||||
Long-term (fixed)
|
$
|
177
|
|
|
$
|
225
|
|
Long-term (variable)
|
21
|
|
|
44
|
|
||
Short-term
|
68
|
|
|
47
|
|
||
Total operating lease expense
|
$
|
266
|
|
|
$
|
317
|
|
GOODWILL (In millions)
|
January 1, 2020
|
|
Dispositions and classification to held for sale
|
|
Currency exchange
and other |
|
Balance at
March 31, 2020 |
|
||||
|
|
|
|
|
|
|||||||
Power
|
$
|
145
|
|
$
|
—
|
|
$
|
—
|
|
$
|
145
|
|
Renewable Energy
|
3,290
|
|
—
|
|
(74
|
)
|
3,216
|
|
||||
Aviation
|
9,859
|
|
—
|
|
(41
|
)
|
9,818
|
|
||||
Healthcare
|
11,728
|
|
—
|
|
(17
|
)
|
11,711
|
|
||||
Capital
|
839
|
|
—
|
|
—
|
|
839
|
|
||||
Corporate
|
873
|
|
—
|
|
(5
|
)
|
869
|
|
||||
Total
|
$
|
26,734
|
|
$
|
—
|
|
$
|
(136
|
)
|
$
|
26,598
|
|
OTHER INTANGIBLE ASSETS - NET (In millions)
|
March 31, 2020
|
|
December 31, 2019
|
|
||
|
|
|
||||
Intangible assets subject to amortization
|
$
|
10,381
|
|
$
|
10,653
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
EQUIPMENT & SERVICES REVENUES
|
Three months ended March 31
|
||||||||||||||||||
(In millions)
|
2020
|
|
2019
|
||||||||||||||||
|
Equipment
|
Services
|
Total
|
|
Equipment
|
Services
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
||||||||||||
Power
|
$
|
1,506
|
|
$
|
2,518
|
|
$
|
4,025
|
|
|
$
|
1,576
|
|
$
|
3,041
|
|
$
|
4,617
|
|
Renewable Energy
|
2,576
|
|
618
|
|
3,194
|
|
|
1,982
|
|
557
|
|
2,538
|
|
||||||
Aviation
|
2,444
|
|
4,449
|
|
6,892
|
|
|
3,113
|
|
4,841
|
|
7,954
|
|
||||||
Healthcare
|
2,699
|
|
2,029
|
|
4,727
|
|
|
2,653
|
|
2,029
|
|
4,683
|
|
||||||
Corporate items and industrial eliminations
|
(48
|
)
|
54
|
|
6
|
|
|
284
|
|
248
|
|
532
|
|
||||||
Total GE Industrial revenues
|
$
|
9,177
|
|
$
|
9,668
|
|
$
|
18,844
|
|
|
$
|
9,608
|
|
$
|
10,716
|
|
$
|
20,324
|
|
REVENUES
|
Three months ended March 31
|
||||||
(In millions)
|
2020
|
|
|
2019
|
|
||
|
|
|
|
||||
Gas Power
|
$
|
2,859
|
|
|
$
|
3,263
|
|
Power Portfolio
|
1,165
|
|
|
1,355
|
|
||
Power
|
$
|
4,025
|
|
|
$
|
4,617
|
|
|
|
|
|
||||
Onshore Wind
|
$
|
2,124
|
|
|
$
|
1,441
|
|
Grid Solutions equipment and services
|
839
|
|
|
917
|
|
||
Hydro, Offshore Wind and other
|
230
|
|
|
180
|
|
||
Renewable Energy
|
$
|
3,194
|
|
|
$
|
2,538
|
|
|
|
|
|
||||
Commercial Engines & Services
|
$
|
4,777
|
|
|
$
|
5,949
|
|
Military
|
960
|
|
|
1,036
|
|
||
Systems & Other
|
1,156
|
|
|
969
|
|
||
Aviation
|
$
|
6,892
|
|
|
$
|
7,954
|
|
|
|
|
|
||||
Healthcare Systems
|
$
|
3,448
|
|
|
$
|
3,433
|
|
Life Sciences(a)
|
1,280
|
|
|
1,251
|
|
||
Healthcare
|
$
|
4,727
|
|
|
$
|
4,683
|
|
|
|
|
|
||||
Corporate items and industrial eliminations
|
6
|
|
|
532
|
|
||
Total GE Industrial revenues
|
$
|
18,844
|
|
|
$
|
20,324
|
|
Capital
|
1,923
|
|
|
2,227
|
|
||
GE Capital-GE eliminations
|
$
|
(244
|
)
|
|
$
|
(349
|
)
|
Consolidated revenues
|
$
|
20,524
|
|
|
$
|
22,202
|
|
|
|
|
|
||||
(a) Includes revenues of $830 million and $765 million from BioPharma for the three months ended March 31, 2020 and 2019, respectively.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
March 31, 2020 (In millions)
|
Power
|
Aviation
|
Renewable Energy
|
Healthcare
|
Other
|
Total
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||
Revenues in excess of billings
|
$
|
5,197
|
|
$
|
4,909
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
10,106
|
|
Billings in excess of revenues
|
(1,586
|
)
|
(3,660
|
)
|
—
|
|
—
|
|
—
|
|
(5,247
|
)
|
||||||
Long-term service agreements(a)
|
3,611
|
|
1,248
|
|
—
|
|
—
|
|
—
|
|
4,859
|
|
||||||
Short-term and other service agreements
|
155
|
|
389
|
|
33
|
|
174
|
|
45
|
|
795
|
|
||||||
Equipment contract revenues(b)
|
2,425
|
|
60
|
|
1,185
|
|
278
|
|
133
|
|
4,081
|
|
||||||
Total contract assets
|
6,191
|
|
1,696
|
|
1,217
|
|
452
|
|
178
|
|
9,735
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Deferred inventory costs
|
887
|
|
481
|
|
1,148
|
|
342
|
|
1
|
|
2,859
|
|
||||||
Nonrecurring engineering costs
|
49
|
|
2,306
|
|
43
|
|
33
|
|
—
|
|
2,431
|
|
||||||
Customer advances and other(c)
|
—
|
|
1,143
|
|
—
|
|
—
|
|
(32
|
)
|
1,111
|
|
||||||
Contract and other deferred assets
|
$
|
7,127
|
|
$
|
5,627
|
|
$
|
2,409
|
|
$
|
827
|
|
$
|
146
|
|
$
|
16,136
|
|
December 31, 2019 (In millions)
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||
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
|
943
|
|
287
|
|
1,677
|
|
359
|
|
—
|
|
3,267
|
|
||||||
Nonrecurring engineering costs
|
44
|
|
2,257
|
|
47
|
|
35
|
|
8
|
|
2,391
|
|
||||||
Customer advances and other(c)
|
—
|
|
1,165
|
|
—
|
|
—
|
|
(32
|
)
|
1,133
|
|
||||||
Contract and other deferred assets
|
$
|
7,465
|
|
$
|
5,384
|
|
$
|
2,985
|
|
$
|
886
|
|
$
|
82
|
|
$
|
16,801
|
|
(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 $1,777 million and $1,712 million as of March 31, 2020 and December 31, 2019, respectively. The corresponding discount is recorded within liabilities as Deferred income and amounted to $332 million and $308 million as of March 31, 2020 and December 31, 2019, 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 $877 million and $909 million as of March 31, 2020 and December 31, 2019, respectively.
|
(c)
|
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 $961 million and $986 million as of March 31, 2020 and December 31, 2019, respectively. The corresponding discount is recorded within liabilities as Deferred income and amounted to $268 million and $256 million as of March 31, 2020 and December 31, 2019, respectively.
|
March 31, 2020 (In millions)
|
Power
|
Aviation
|
Renewable Energy
|
Healthcare
|
Other
|
Total
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||
Progress collections on equipment contracts
|
$
|
5,418
|
|
$
|
144
|
|
$
|
1,146
|
|
$
|
—
|
|
$
|
—
|
|
$
|
6,709
|
|
Other progress collections
|
317
|
|
4,791
|
|
3,999
|
|
312
|
|
170
|
|
9,589
|
|
||||||
Total progress collections
|
5,735
|
|
4,935
|
|
5,145
|
|
312
|
|
170
|
|
16,298
|
|
||||||
Deferred income(a)
|
41
|
|
1,569
|
|
316
|
|
1,654
|
|
109
|
|
3,689
|
|
||||||
GE Progress collections and deferred income
|
$
|
5,776
|
|
$
|
6,504
|
|
$
|
5,461
|
|
$
|
1,966
|
|
$
|
279
|
|
$
|
19,986
|
|
December 31, 2019 (In millions)
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||
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
|
|
(a)
|
Included in this balance are finance discounts associated with customer advances at Aviation of $600 million and $564 million as of March 31, 2020 and December 31, 2019, respectively.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
(In millions)
|
March 31, 2020
|
|
December 31, 2019
|
|
||
|
|
|
||||
Short-term borrowings
|
|
|
||||
Commercial paper
|
$
|
1,946
|
|
$
|
3,008
|
|
Current portion of long-term borrowings
|
764
|
|
766
|
|
||
Current portion of long-term borrowings assumed by GE
|
5,888
|
|
5,473
|
|
||
Other
|
1,288
|
|
1,832
|
|
||
Total GE short-term borrowings
|
$
|
9,887
|
|
$
|
11,079
|
|
|
|
|
||||
Current portion of long-term borrowings
|
$
|
8,542
|
|
$
|
11,226
|
|
Intercompany payable to GE
|
2,519
|
|
2,104
|
|
||
Other
|
292
|
|
804
|
|
||
Total GE Capital short-term borrowings
|
$
|
11,353
|
|
$
|
14,134
|
|
|
|
|
||||
Eliminations
|
(3,118
|
)
|
(3,140
|
)
|
||
Total short-term borrowings
|
$
|
18,122
|
|
$
|
22,072
|
|
|
|
|
||||
Long-term borrowings
|
|
|
||||
Senior notes
|
$
|
14,717
|
|
$
|
14,762
|
|
Senior notes assumed by GE
|
21,590
|
|
23,024
|
|
||
Subordinated notes assumed by GE
|
1,658
|
|
2,871
|
|
||
Other
|
281
|
|
324
|
|
||
Total GE long-term borrowings
|
$
|
38,244
|
|
$
|
40,980
|
|
|
|
|
||||
Senior notes
|
$
|
27,373
|
|
$
|
25,371
|
|
Subordinated notes
|
177
|
|
178
|
|
||
Intercompany payable to GE
|
14,390
|
|
17,038
|
|
||
Other
|
593
|
|
626
|
|
||
Total GE Capital long-term borrowings
|
$
|
42,534
|
|
$
|
43,213
|
|
|
|
|
||||
Eliminations
|
(14,390
|
)
|
(17,038
|
)
|
||
Total long-term borrowings
|
$
|
66,388
|
|
$
|
67,155
|
|
Non-recourse borrowings of consolidated securitization entities
|
644
|
|
1,655
|
|
||
Total borrowings
|
$
|
85,154
|
|
$
|
90,882
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
March 31, 2020 (In millions)
|
Long-term care insurance contracts
|
Structured settlement annuities & life insurance contracts
|
Other
contracts |
Other adjustments(a)
|
Total
|
||||||||||
|
|
|
|
|
|
||||||||||
Future policy benefit reserves
|
$
|
16,785
|
|
$
|
9,491
|
|
$
|
181
|
|
$
|
4,051
|
|
$
|
30,508
|
|
Claim reserves
|
4,314
|
|
253
|
|
1,099
|
|
—
|
|
5,666
|
|
|||||
Investment contracts
|
—
|
|
1,112
|
|
1,057
|
|
—
|
|
2,169
|
|
|||||
Unearned premiums and other
|
26
|
|
194
|
|
165
|
|
—
|
|
385
|
|
|||||
|
21,125
|
|
11,050
|
|
2,502
|
|
4,051
|
|
38,729
|
|
|||||
Eliminations
|
—
|
|
—
|
|
(488
|
)
|
—
|
|
(488
|
)
|
|||||
Total
|
$
|
21,125
|
|
$
|
11,050
|
|
$
|
2,014
|
|
$
|
4,051
|
|
$
|
38,241
|
|
December 31, 2019 (In millions)
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
||||||||||
Future policy benefit reserves
|
$
|
16,755
|
|
$
|
9,511
|
|
$
|
183
|
|
$
|
5,655
|
|
$
|
32,104
|
|
Claim reserves
|
4,238
|
|
252
|
|
1,125
|
|
—
|
|
5,615
|
|
|||||
Investment contracts
|
—
|
|
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
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
Principal pension plans
|
|
Other pension plans
|
||||||||||
|
Three months ended March 31
|
|
Three months ended March 31
|
||||||||||
(In millions)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
|
|
|
|
|
|
||||||||
Service cost for benefits earned
|
$
|
153
|
|
$
|
158
|
|
|
$
|
65
|
|
$
|
63
|
|
Prior service cost amortization
|
37
|
|
33
|
|
|
—
|
|
—
|
|
||||
Expected return on plan assets
|
(748
|
)
|
(863
|
)
|
|
(274
|
)
|
(284
|
)
|
||||
Interest cost on benefit obligations
|
587
|
|
726
|
|
|
108
|
|
139
|
|
||||
Net actuarial loss amortization
|
848
|
|
763
|
|
|
112
|
|
80
|
|
||||
Curtailment/settlement loss (gain)
|
—
|
|
51
|
|
(a)
|
(1
|
)
|
9
|
|
||||
Benefit plans cost
|
$
|
877
|
|
$
|
868
|
|
|
$
|
10
|
|
$
|
7
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
|
Three months ended March 31
|
||||||
(In millions)
|
2020
|
|
|
2019
|
|
||
|
|
|
|
||||
Beginning balance
|
$
|
61
|
|
|
$
|
(39
|
)
|
Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes of $0 and $38(a)
|
6
|
|
|
28
|
|
||
Reclassifications from OCI – net of deferred taxes of $(12) and $(1)
|
(47
|
)
|
|
(4
|
)
|
||
Other comprehensive income (loss)
|
(41
|
)
|
|
24
|
|
||
Less OCI attributable to noncontrolling interests
|
—
|
|
|
1
|
|
||
Investment securities ending balance
|
$
|
20
|
|
|
$
|
(16
|
)
|
|
|
|
|
||||
Beginning balance
|
$
|
(4,818
|
)
|
|
$
|
(6,134
|
)
|
OCI before reclassifications – net of deferred taxes of $(5) and $26
|
(554
|
)
|
|
307
|
|
||
Reclassifications from OCI – net of deferred taxes of $0 and $(4)(b)
|
690
|
|
|
117
|
|
||
Other comprehensive income (loss)
|
135
|
|
|
423
|
|
||
Less OCI attributable to noncontrolling interests
|
2
|
|
|
100
|
|
||
Currency translation adjustments ending balance
|
$
|
(4,685
|
)
|
|
$
|
(5,810
|
)
|
|
|
|
|
||||
Beginning balance
|
$
|
49
|
|
|
$
|
13
|
|
OCI before reclassifications – net of deferred taxes of $(45) and $11
|
(262
|
)
|
|
34
|
|
||
Reclassifications from OCI – net of deferred taxes of $8 and $(4)(b)
|
51
|
|
|
3
|
|
||
Other comprehensive income (loss)
|
(211
|
)
|
|
38
|
|
||
Less OCI attributable to noncontrolling interests
|
—
|
|
|
2
|
|
||
Cash flow hedges ending balance
|
$
|
(163
|
)
|
|
$
|
49
|
|
|
|
|
|
||||
Beginning balance
|
$
|
(7,024
|
)
|
|
$
|
(8,254
|
)
|
OCI before reclassifications – net of deferred taxes of $30 and $48
|
219
|
|
|
(116
|
)
|
||
Reclassifications from OCI – net of deferred taxes of $239 and $183(b)
|
817
|
|
|
662
|
|
||
Other comprehensive income (loss)
|
1,035
|
|
|
545
|
|
||
Less OCI attributable to noncontrolling interests
|
3
|
|
|
(2
|
)
|
||
Benefit plans ending balance
|
$
|
(5,991
|
)
|
|
$
|
(7,708
|
)
|
|
|
|
|
||||
Accumulated other comprehensive income (loss) at March 31
|
$
|
(10,819
|
)
|
|
$
|
(13,485
|
)
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
Three months ended March 31
|
2020
|
|
2019
|
||||||||||
(In millions; per-share amounts in dollars)
|
Diluted
|
|
Basic
|
|
|
Diluted
|
|
Basic
|
|
||||
|
|
|
|
|
|
||||||||
Earnings from continuing operations for per-share calculation
|
$
|
6,358
|
|
$
|
6,358
|
|
|
$
|
936
|
|
$
|
954
|
|
Preferred stock dividends
|
(43
|
)
|
(43
|
)
|
|
(40
|
)
|
(40
|
)
|
||||
Earnings from continuing operations attributable to
common shareholders for per-share calculation |
6,315
|
|
6,315
|
|
|
897
|
|
915
|
|
||||
Earnings (loss) from discontinued operations
for per-share calculation |
(175
|
)
|
(175
|
)
|
|
2,604
|
|
2,622
|
|
||||
Net earnings (loss) attributable to GE common
shareholders for per-share calculation |
$
|
6,140
|
|
$
|
6,140
|
|
|
$
|
3,519
|
|
$
|
3,537
|
|
|
|
|
|
|
|
||||||||
Shares of GE common stock outstanding
|
8,742
|
|
8,742
|
|
|
8,711
|
|
8,711
|
|
||||
Employee compensation-related shares (including stock options)
|
7
|
|
—
|
|
|
15
|
|
—
|
|
||||
Total average equivalent shares
|
8,749
|
|
8,742
|
|
|
8,726
|
|
8,711
|
|
||||
|
|
|
|
|
|
||||||||
Earnings per share from continuing operations
|
$
|
0.72
|
|
$
|
0.72
|
|
|
$
|
0.10
|
|
$
|
0.10
|
|
Earnings (loss) per share from discontinued operations
|
(0.02
|
)
|
(0.02
|
)
|
|
0.30
|
|
0.30
|
|
||||
Net earnings (loss) per share
|
0.70
|
|
0.70
|
|
|
0.40
|
|
0.41
|
|
||||
|
|
|
|
|
|
||||||||
Potentially dilutive securities(a)
|
422
|
|
|
|
471
|
|
|
|
|
|
|
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||
(In millions)
|
Carrying
amount (net) |
|
Estimated
fair value |
|
|
Carrying
amount (net) |
|
Estimated
fair value |
|
||||
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
||||||||
Loans and other receivables
|
$
|
3,912
|
|
$
|
3,777
|
|
|
$
|
4,113
|
|
$
|
4,208
|
|
Liabilities
|
|
|
|
|
|
||||||||
Borrowings (Note 11)
|
85,154
|
|
85,033
|
|
|
90,882
|
|
97,754
|
|
||||
Investment contracts (Note 12)
|
2,169
|
|
2,485
|
|
|
2,191
|
|
2,588
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FAIR VALUE OF DERIVATIVES
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||
(In millions)
|
Gross Notional
|
|
All other assets
|
|
All other liabilities
|
|
|
Gross Notional
|
|
All other assets
|
|
All other liabilities
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
$
|
23,617
|
|
$
|
2,191
|
|
$
|
9
|
|
|
$
|
23,918
|
|
$
|
1,636
|
|
$
|
11
|
|
Currency exchange contracts
|
7,307
|
|
170
|
|
277
|
|
|
7,044
|
|
99
|
|
46
|
|
||||||
Derivatives accounted for as hedges
|
$
|
30,924
|
|
$
|
2,361
|
|
$
|
287
|
|
|
$
|
30,961
|
|
$
|
1,734
|
|
$
|
57
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
$
|
2,447
|
|
$
|
29
|
|
$
|
7
|
|
|
$
|
3,185
|
|
$
|
18
|
|
$
|
12
|
|
Currency exchange contracts
|
66,240
|
|
1,105
|
|
1,477
|
|
|
62,165
|
|
697
|
|
744
|
|
||||||
Other contracts
|
1,598
|
|
5
|
|
103
|
|
|
1,706
|
|
123
|
|
40
|
|
||||||
Derivatives not accounted for as hedges
|
$
|
70,285
|
|
$
|
1,139
|
|
$
|
1,587
|
|
|
$
|
67,056
|
|
$
|
838
|
|
$
|
796
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross derivatives
|
$
|
101,209
|
|
$
|
3,500
|
|
$
|
1,874
|
|
|
$
|
98,018
|
|
$
|
2,572
|
|
$
|
853
|
|
|
|
|
|
|
|
|
|
||||||||||||
Netting and credit adjustments
|
|
$
|
(1,145
|
)
|
$
|
(1,155
|
)
|
|
|
$
|
(546
|
)
|
$
|
(546
|
)
|
||||
Cash collateral adjustments
|
|
(1,297
|
)
|
(198
|
)
|
|
|
(1,286
|
)
|
(105
|
)
|
||||||||
Net derivatives recognized in statement of financial position
|
|
$
|
1,058
|
|
$
|
520
|
|
|
|
$
|
740
|
|
$
|
202
|
|
||||
|
|
|
|
|
|
|
|
||||||||||||
Net accrued interest
|
|
$
|
71
|
|
$
|
1
|
|
|
|
$
|
182
|
|
$
|
1
|
|
||||
Securities held as collateral
|
|
(693
|
)
|
—
|
|
|
|
(469
|
)
|
—
|
|
||||||||
Net amount
|
|
$
|
436
|
|
$
|
521
|
|
|
|
$
|
452
|
|
$
|
203
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
Three months ended March 31, 2020
|
|
Three months ended March 31, 2019
|
||||||||||||||||||||||||||||
(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
|
$
|
20,524
|
|
$
|
15,695
|
|
$
|
794
|
|
$
|
3,065
|
|
$
|
6,869
|
|
|
$
|
22,202
|
|
$
|
16,208
|
|
$
|
1,065
|
|
$
|
3,402
|
|
$
|
847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Total effect of cash flow hedges
|
$
|
(21
|
)
|
$
|
(25
|
)
|
$
|
(10
|
)
|
$
|
(3
|
)
|
$
|
—
|
|
|
$
|
20
|
|
$
|
(9
|
)
|
$
|
(10
|
)
|
$
|
(1
|
)
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Hedged items
|
|
|
$
|
(2,480
|
)
|
|
|
|
|
|
$
|
(527
|
)
|
|
|
||||||||||||||||
Derivatives designated as hedging instruments
|
|
|
2,511
|
|
|
|
|
|
|
515
|
|
|
|
||||||||||||||||||
Total effect of fair value hedges
|
|
|
$
|
31
|
|
|
|
|
|
|
$
|
(11
|
)
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Interest rate contracts
|
$
|
(23
|
)
|
$
|
—
|
|
$
|
(9
|
)
|
$
|
—
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
$
|
—
|
|
$
|
(16
|
)
|
$
|
—
|
|
$
|
—
|
|
Currency exchange contracts
|
(521
|
)
|
13
|
|
—
|
|
54
|
|
11
|
|
|
390
|
|
9
|
|
—
|
|
(45
|
)
|
3
|
|
||||||||||
Other
|
—
|
|
—
|
|
—
|
|
(160
|
)
|
(22
|
)
|
|
—
|
|
—
|
|
96
|
|
—
|
|
13
|
|
||||||||||
Total effect of derivatives not designated as hedges
|
$
|
(545
|
)
|
$
|
13
|
|
$
|
(9
|
)
|
$
|
(106
|
)
|
$
|
(12
|
)
|
|
$
|
386
|
|
$
|
9
|
|
$
|
80
|
|
$
|
(45
|
)
|
$
|
16
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
Three months ended March 31
|
|||||
(In millions)
|
2020
|
|
2019
|
|
||
|
|
|
|
|
||
Combined GE and GE Capital cash from (used for) operating activities - continuing operations
|
$
|
(385
|
)
|
$
|
(557
|
)
|
GE current receivables sold to GE Capital
|
(997
|
)
|
538
|
|
||
GE long-term receivables sold to GE Capital
|
135
|
|
174
|
|
||
Supply chain finance programs(a)
|
884
|
|
310
|
|
||
Other reclassifications and eliminations
|
216
|
|
(45
|
)
|
||
Consolidated cash from (used for) operating activities - continuing operations
|
$
|
(148
|
)
|
$
|
420
|
|
Combined GE and GE Capital cash from (used for) investing activities - continuing operations
|
$
|
19,991
|
|
$
|
6,048
|
|
GE current receivables sold to GE Capital
|
945
|
|
(1,306
|
)
|
||
GE long-term receivables sold to GE Capital
|
(135
|
)
|
(174
|
)
|
||
Supply chain finance programs(a)
|
(884
|
)
|
(310
|
)
|
||
Other reclassifications and eliminations
|
(695
|
)
|
(562
|
)
|
||
Consolidated cash from (used for) investing activities - continuing operations
|
$
|
19,221
|
|
$
|
3,696
|
|
Combined GE and GE Capital cash from (used for) financing activities - continuing operations
|
$
|
(8,451
|
)
|
$
|
(4,837
|
)
|
GE current receivables sold to GE Capital
|
52
|
|
768
|
|
||
Other reclassifications and eliminations
|
480
|
|
607
|
|
||
Consolidated cash from (used for) financing activities - continuing operations
|
$
|
(7,919
|
)
|
$
|
(3,461
|
)
|
(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.
|
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2020 (UNAUDITED)
|
||||||||||||||||||
|
||||||||||||||||||
(In millions)
|
Parent
Company
Guarantor
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Consolidated
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Sales of goods and services
|
$
|
6,217
|
|
$
|
—
|
|
$
|
—
|
|
$
|
29,404
|
|
$
|
(16,806
|
)
|
$
|
18,814
|
|
GE Capital revenues from services
|
—
|
|
238
|
|
2
|
|
1,983
|
|
(513
|
)
|
1,709
|
|
||||||
Total revenues
|
6,217
|
|
238
|
|
2
|
|
31,386
|
|
(17,319
|
)
|
20,524
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Interest and other financial charges
|
295
|
|
258
|
|
313
|
|
337
|
|
(409
|
)
|
794
|
|
||||||
Other costs and expenses
|
6,898
|
|
—
|
|
—
|
|
32,294
|
|
(19,068
|
)
|
20,124
|
|
||||||
Total costs and expenses
|
7,192
|
|
258
|
|
313
|
|
32,631
|
|
(19,477
|
)
|
20,918
|
|
||||||
Other income (loss)
|
705
|
|
—
|
|
—
|
|
18,294
|
|
(12,129
|
)
|
6,869
|
|
||||||
Equity in earnings (loss) of affiliates
|
6,615
|
|
—
|
|
278
|
|
17,098
|
|
(23,991
|
)
|
—
|
|
||||||
Earnings (loss) from continuing operations before income taxes
|
6,344
|
|
(20
|
)
|
(34
|
)
|
34,148
|
|
(33,963
|
)
|
6,475
|
|
||||||
Benefit (provision) for income taxes
|
20
|
|
2
|
|
—
|
|
421
|
|
(506
|
)
|
(63
|
)
|
||||||
Earnings (loss) from continuing operations
|
6,363
|
|
(17
|
)
|
(34
|
)
|
34,568
|
|
(34,469
|
)
|
6,412
|
|
||||||
Earnings (loss) from discontinued operations, net of taxes
|
(164
|
)
|
—
|
|
(15
|
)
|
—
|
|
1
|
|
(178
|
)
|
||||||
Net earnings (loss)
|
6,199
|
|
(17
|
)
|
(49
|
)
|
34,568
|
|
(34,468
|
)
|
6,233
|
|
||||||
Less net earnings (loss) attributable to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
1
|
|
33
|
|
34
|
|
||||||
Net earnings (loss) attributable to the Company
|
6,199
|
|
(17
|
)
|
(49
|
)
|
34,567
|
|
(34,501
|
)
|
6,199
|
|
||||||
Other comprehensive income (loss)
|
913
|
|
—
|
|
(12
|
)
|
(823
|
)
|
835
|
|
913
|
|
||||||
Comprehensive income (loss) attributable to the Company
|
$
|
7,113
|
|
$
|
(17
|
)
|
$
|
(61
|
)
|
$
|
33,744
|
|
$
|
(33,666
|
)
|
$
|
7,113
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2019 (UNAUDITED)
|
||||||||||||||||||
|
||||||||||||||||||
(In millions)
|
Parent
Company
Guarantor
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Consolidated
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Sales of goods and services
|
$
|
4,580
|
|
$
|
—
|
|
$
|
—
|
|
$
|
38,456
|
|
$
|
(22,779
|
)
|
$
|
20,257
|
|
GE Capital revenues from services
|
—
|
|
233
|
|
75
|
|
2,580
|
|
(943
|
)
|
1,945
|
|
||||||
Total revenues
|
4,580
|
|
233
|
|
75
|
|
41,035
|
|
(23,722
|
)
|
22,202
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Interest and other financial charges
|
379
|
|
231
|
|
379
|
|
577
|
|
(501
|
)
|
1,065
|
|
||||||
Other costs and expenses
|
8,494
|
|
—
|
|
—
|
|
38,880
|
|
(26,512
|
)
|
20,862
|
|
||||||
Total costs and expenses
|
8,873
|
|
231
|
|
380
|
|
39,457
|
|
(27,013
|
)
|
21,927
|
|
||||||
Other income (loss)
|
(6,743
|
)
|
—
|
|
—
|
|
16,963
|
|
(9,372
|
)
|
847
|
|
||||||
Equity in earnings (loss) of affiliates
|
14,929
|
|
—
|
|
375
|
|
11,013
|
|
(26,318
|
)
|
—
|
|
||||||
Earnings (loss) from continuing operations before income taxes
|
3,893
|
|
3
|
|
71
|
|
29,555
|
|
(32,399
|
)
|
1,122
|
|
||||||
Benefit (provision) for income taxes
|
(335
|
)
|
—
|
|
—
|
|
(658
|
)
|
854
|
|
(140
|
)
|
||||||
Earnings (loss) from continuing operations
|
3,558
|
|
2
|
|
71
|
|
28,896
|
|
(31,545
|
)
|
983
|
|
||||||
Earnings (loss) from discontinued operations, net of taxes
|
30
|
|
—
|
|
—
|
|
—
|
|
2,632
|
|
2,663
|
|
||||||
Net earnings (loss)
|
3,588
|
|
2
|
|
71
|
|
28,896
|
|
(28,912
|
)
|
3,645
|
|
||||||
Less net earnings (loss) attributable to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
58
|
|
57
|
|
||||||
Net earnings (loss) attributable to the Company
|
3,588
|
|
2
|
|
71
|
|
28,897
|
|
(28,970
|
)
|
3,588
|
|
||||||
Other comprehensive income (loss)
|
929
|
|
—
|
|
(1,082
|
)
|
(443
|
)
|
1,524
|
|
930
|
|
||||||
Comprehensive income (loss) attributable to the Company
|
$
|
4,517
|
|
$
|
2
|
|
$
|
(1,011
|
)
|
$
|
28,454
|
|
$
|
(27,446
|
)
|
$
|
4,517
|
|
CONDENSED CONSOLIDATING STATEMENT OF 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
|
|
$
|
5,991
|
|
$
|
2,981
|
|
$
|
9,712
|
|
$
|
(131,783
|
)
|
$
|
22,072
|
|
Long-term and non-recourse borrowings
|
40,660
|
|
10,780
|
|
24,417
|
|
34,262
|
|
(41,310
|
)
|
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 CASH FLOWS THREE MONTHS ENDED MARCH 31, 2020 (UNAUDITED)
|
||||||||||||||||||
(In millions)
|
Parent
Company
Guarantor
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Consolidated
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Cash from (used for)
operating activities
|
$
|
2,339
|
|
$
|
558
|
|
$
|
(819
|
)
|
$
|
30,587
|
|
$
|
(32,879
|
)
|
$
|
(214
|
)
|
|
|
|
|
|
|
|
||||||||||||
Cash from (used for) investing activities
|
$
|
(584
|
)
|
$
|
(558
|
)
|
$
|
14
|
|
$
|
(21,387
|
)
|
$
|
41,601
|
|
$
|
19,086
|
|
|
|
|
|
|
|
|
||||||||||||
Cash from (used for) financing activities
|
$
|
15,117
|
|
$
|
—
|
|
$
|
805
|
|
$
|
(15,188
|
)
|
$
|
(8,653
|
)
|
$
|
(7,919
|
)
|
|
|
|
|
|
|
|
||||||||||||
Effect of currency exchange rate changes on
cash, cash equivalents and restricted cash
|
—
|
|
—
|
|
—
|
|
(256
|
)
|
—
|
|
(256
|
)
|
||||||
Increase (decrease) in cash, cash
equivalents and restricted cash
|
16,872
|
|
—
|
|
—
|
|
(6,243
|
)
|
69
|
|
10,697
|
|
||||||
Cash, cash equivalents and restricted cash
at beginning of year
|
10,591
|
|
—
|
|
—
|
|
27,121
|
|
(636
|
)
|
37,077
|
|
||||||
Cash, cash equivalents and restricted cash
at March 31 |
27,463
|
|
—
|
|
—
|
|
20,878
|
|
(567
|
)
|
47,774
|
|
||||||
Less cash, cash equivalents and restricted
cash of discontinued operations at
March 31
|
—
|
|
—
|
|
—
|
|
437
|
|
—
|
|
437
|
|
||||||
Cash, cash equivalents and restricted cash
of continuing operations at March 31
|
$
|
27,463
|
|
$
|
—
|
|
$
|
—
|
|
$
|
20,441
|
|
$
|
(567
|
)
|
$
|
47,338
|
|
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2019 (UNAUDITED)
|
||||||||||||||||||
(In millions)
|
Parent
Company
Guarantor
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Consolidated
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Cash from (used for)
operating activities(a)
|
$
|
(6,665
|
)
|
$
|
611
|
|
$
|
(1,063
|
)
|
$
|
(22,734
|
)
|
$
|
29,973
|
|
$
|
122
|
|
|
|
|
|
|
|
|
||||||||||||
Cash from (used for) investing activities
|
$
|
7,201
|
|
$
|
(611
|
)
|
$
|
(61
|
)
|
$
|
48,313
|
|
$
|
(51,352
|
)
|
$
|
3,490
|
|
|
|
|
|
|
|
|
||||||||||||
Cash from (used for) financing activities
|
$
|
(555
|
)
|
$
|
—
|
|
$
|
1,124
|
|
$
|
(26,436
|
)
|
$
|
22,133
|
|
$
|
(3,735
|
)
|
|
|
|
|
|
|
|
||||||||||||
Effect of currency exchange rate changes on
cash, cash equivalents and restricted cash
|
—
|
|
—
|
|
—
|
|
78
|
|
—
|
|
78
|
|
||||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
(20
|
)
|
—
|
|
—
|
|
(779
|
)
|
753
|
|
(45
|
)
|
||||||
Cash, cash equivalents and restricted cash
at beginning of year
|
9,561
|
|
—
|
|
1
|
|
30,398
|
|
(4,412
|
)
|
35,548
|
|
||||||
Cash, cash equivalents and restricted cash
at March 31 |
9,541
|
|
—
|
|
—
|
|
29,620
|
|
(3,658
|
)
|
35,503
|
|
||||||
Less cash, cash equivalents and restricted
cash of discontinued operations at
March 31
|
—
|
|
—
|
|
—
|
|
3,671
|
|
—
|
|
3,671
|
|
||||||
Cash, cash equivalents and restricted cash
of continuing operations at March 31
|
$
|
9,541
|
|
$
|
—
|
|
$
|
—
|
|
$
|
25,949
|
|
$
|
(3,658
|
)
|
$
|
31,832
|
|
(a)
|
Parent Company Guarantor cash flows included cash from (used for) operating activities of discontinued operations of $(2,984) million.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
For the three months ended March 31, 2020 (In millions)
|
|
||
|
|
||
Revenues
|
$
|
5,425
|
|
Gross profit
|
755
|
|
|
Net income (loss)
|
(16,098
|
)
|
|
Net income (loss) attributable to the entity
|
(10,210
|
)
|
|
Three months ended March 31
|
|||||
(In millions)
|
2020
|
|
2019
|
|
||
|
|
|
||||
Purchases and sales of business interests(a)
|
$
|
12,372
|
|
$
|
253
|
|
Licensing and royalty income
|
42
|
|
40
|
|
||
Associated companies
|
39
|
|
39
|
|
||
Net interest and investment income(b)
|
(5,632
|
)
|
137
|
|
||
Other items
|
53
|
|
384
|
|
||
GE
|
6,874
|
|
852
|
|
||
Eliminations
|
(4
|
)
|
(5
|
)
|
||
Total
|
$
|
6,869
|
|
$
|
847
|
|
(a)
|
Included a pre-tax gain of $12,292 million on the sale of BioPharma in 2020. Included a pre-tax gain of $224 million on the sale of ServiceMax in 2019. See Note 2 for further information.
|
(b)
|
Included unrealized loss of $(5,710) million related to our interest in Baker Hughes in 2020. See Note 3 for further information.
|
FORWARD LOOKING STATEMENTS
|
|
|
•
|
the severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of businesses’ and governments’ responses to the pandemic on our operations and personnel, and on commercial activity and demand across our and our customers’ businesses, and on global supply chains;
|
•
|
our inability to predict the extent to which the COVID-19 pandemic and related impacts will continue to adversely impact our business operations, financial performance, results of operations, financial position, the prices of our securities and the achievement of our strategic objectives;
|
•
|
changes in macroeconomic and market conditions and market volatility (including developments and volatility arising from the COVID-19 pandemic), including interest rates, the value of securities and other financial assets (including our equity ownership position in Baker Hughes), oil and other commodity prices and exchange rates, and the impact of such changes and volatility on our financial position;
|
•
|
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, supplier, 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 any 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;
|
•
|
our success in executing and completing asset dispositions or other transactions, including our plan to exit our equity ownership position in Baker Hughes, the timing of closing for such transactions and the expected proceeds and benefits to GE;
|
•
|
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;
|
•
|
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;
|
•
|
operational execution by our businesses, including our ability to improve the operations and execution of our Power and Renewable Energy businesses, and the performance 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 return to delivery, and related reputational effects;
|
•
|
the impact of potential information technology, cybersecurity or data security breaches; and
|
•
|
the other factors that are described in the "Risk Factors" section of this report and of our Annual Report on Form 10-K for the year ended December 31, 2019, as such descriptions may be updated or amended in any future reports we file with the SEC.
|
OTHER ITEMS
|
|
|
April 29, 2020
|
|
/s/ Thomas S. Timko
|
Date
|
|
Thomas S. Timko
Vice President, Chief Accounting Officer and Controller
Principal Accounting Officer
|
Executive Band
|
Senior Executive Band
|
Officer
|
35%
|
70%
|
100%
|
(1)
|
determine who is eligible to participate in the Plan;
|
(2)
|
determine whether to waive the Active Employment Requirement for any individual;
|
1.
|
I have reviewed this quarterly report on Form 10-Q of General Electric Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ H. Lawrence Culp, Jr.
|
H. Lawrence Culp, Jr.
|
Chairman and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of General Electric Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Carolina Dybeck Happe
|
Carolina Dybeck Happe
|
Chief Financial Officer
|
(1)
|
The report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the registrant.
|
/s/ H. Lawrence Culp, Jr.
|
H. Lawrence Culp, Jr.
|
Chairman and Chief Executive Officer
|
/s/ Carolina Dybeck Happe
|
Carolina Dybeck Happe
|
Chief Financial Officer
|