New York
|
14-0689340
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
3135 Easton Turnpike, Fairfield, CT
|
06828-0001
|
|
(Address of principal executive offices)
|
(Zip Code)
|
|
(Registrant’s telephone number, including area code)
(203) 373-2211
_______________________________________________
(Former name, former address and former fiscal year,
if changed since last report)
|
Large accelerated filer
þ
|
Accelerated filer
¨
|
Non-accelerated filer
¨
|
Smaller reporting company
¨
|
FORWARD-LOOKING STATEMENTS |
CORPORATE INFORMATION
|
Three months ended March 31 (Unaudited)
|
||||||||||||||||||
Consolidated
|
GE(a)
|
Financial Services (GECC)
|
||||||||||||||||
(In millions, except share amounts)
|
2014
|
2013
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Revenues and other income
|
||||||||||||||||||
Sales of goods
|
$
|
16,941
|
$
|
15,674
|
$
|
16,988
|
$
|
15,677
|
$
|
27
|
$
|
26
|
||||||
Sales of services
|
6,909
|
6,513
|
7,023
|
6,626
|
–
|
–
|
||||||||||||
Other income
|
196
|
1,615
|
161
|
1,620
|
–
|
–
|
||||||||||||
GECC earnings from continuing operations
|
–
|
–
|
1,933
|
1,938
|
–
|
–
|
||||||||||||
GECC revenues from services
|
10,132
|
11,141
|
–
|
–
|
10,488
|
11,442
|
||||||||||||
Total revenues and other income
|
34,178
|
34,943
|
26,105
|
25,861
|
10,515
|
11,468
|
||||||||||||
Costs and expenses
|
||||||||||||||||||
Cost of goods sold
|
13,713
|
12,866
|
13,762
|
12,874
|
25
|
21
|
||||||||||||
Cost of services sold
|
4,809
|
4,449
|
4,923
|
4,562
|
–
|
–
|
||||||||||||
Interest and other financial charges
|
2,414
|
2,603
|
365
|
324
|
2,161
|
2,382
|
||||||||||||
Investment contracts, insurance losses and
|
||||||||||||||||||
insurance annuity benefits
|
620
|
663
|
–
|
–
|
643
|
689
|
||||||||||||
Provision for losses on financing receivables
|
970
|
1,457
|
–
|
–
|
970
|
1,457
|
||||||||||||
Other costs and expenses
|
8,196
|
8,766
|
3,808
|
4,057
|
4,574
|
4,886
|
||||||||||||
Total costs and expenses
|
30,722
|
30,804
|
22,858
|
21,817
|
8,373
|
9,435
|
||||||||||||
Earnings from continuing operations
|
||||||||||||||||||
before income taxes
|
3,456
|
4,139
|
3,247
|
4,044
|
2,142
|
2,033
|
||||||||||||
Benefit (provision) for income taxes
|
(516)
|
(508)
|
(318)
|
(424)
|
(198)
|
(84)
|
||||||||||||
Earnings from continuing operations
|
2,940
|
3,631
|
2,929
|
3,620
|
1,944
|
1,949
|
||||||||||||
Earnings (loss) from discontinued operations,
|
||||||||||||||||||
net of taxes
|
12
|
(120)
|
12
|
(120)
|
12
|
(120)
|
||||||||||||
Net earnings
|
2,952
|
3,511
|
2,941
|
3,500
|
1,956
|
1,829
|
||||||||||||
Less net earnings (loss) attributable to
|
||||||||||||||||||
noncontrolling interests
|
(47)
|
(16)
|
(58)
|
(27)
|
11
|
11
|
||||||||||||
Net earnings attributable to the Company
|
$
|
2,999
|
$
|
3,527
|
$
|
2,999
|
$
|
3,527
|
$
|
1,945
|
$
|
1,818
|
||||||
Amounts attributable to the Company
|
||||||||||||||||||
Earnings from continuing operations
|
$
|
2,987
|
$
|
3,647
|
$
|
2,987
|
$
|
3,647
|
$
|
1,933
|
$
|
1,938
|
||||||
Earnings (loss) from discontinued operations,
|
||||||||||||||||||
net of taxes
|
12
|
(120)
|
12
|
(120)
|
12
|
(120)
|
||||||||||||
Net earnings attributable to the Company
|
$
|
2,999
|
$
|
3,527
|
$
|
2,999
|
$
|
3,527
|
$
|
1,945
|
$
|
1,818
|
||||||
Per-share amounts
|
||||||||||||||||||
Earnings from continuing operations
|
||||||||||||||||||
Diluted earnings per share
|
$
|
0.29
|
$
|
0.35
|
||||||||||||||
Basic earnings per share
|
$
|
0.30
|
$
|
0.35
|
||||||||||||||
Net earnings
|
||||||||||||||||||
Diluted earnings per share
|
$
|
0.30
|
$
|
0.34
|
||||||||||||||
Basic earnings per share
|
$
|
0.30
|
$
|
0.34
|
||||||||||||||
Dividends declared per common share
|
$
|
0.22
|
$
|
0.19
|
||||||||||||||
(a)
|
Represents the adding together of all affiliated companies except General Electric Capital Corporation (GECC or Financial Services), which is presented on a one-line basis.
|
See Note 11 for further information about changes in shareowners’ equity.
|
See accompanying notes.
|
Consolidated
|
GE(a)
|
Financial Services (GECC)
|
||||||||||||||||
March 31,
|
December 31,
|
March 31,
|
December 31,
|
March 31,
|
December 31,
|
|||||||||||||
(In millions, except share amounts)
|
2014
|
2013
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||||
Assets
|
||||||||||||||||||
Cash and equivalents
|
$
|
86,979
|
$
|
88,555
|
$
|
11,690
|
$
|
13,682
|
$
|
75,289
|
$
|
74,873
|
||||||
Investment securities
|
45,733
|
43,981
|
286
|
323
|
45,450
|
43,662
|
||||||||||||
Current receivables
|
20,975
|
21,388
|
11,102
|
10,970
|
-
|
-
|
||||||||||||
Inventories
|
18,881
|
17,325
|
18,819
|
17,257
|
62
|
68
|
||||||||||||
Financing receivables – net
|
237,005
|
241,940
|
-
|
-
|
247,242
|
253,029
|
||||||||||||
Other GECC receivables
|
9,009
|
9,114
|
-
|
-
|
15,643
|
16,513
|
||||||||||||
Property, plant and equipment – net
|
67,743
|
68,827
|
17,624
|
17,574
|
50,489
|
51,607
|
||||||||||||
Investment in GECC
|
-
|
-
|
79,637
|
77,745
|
-
|
-
|
||||||||||||
Goodwill
|
79,129
|
77,648
|
52,793
|
51,453
|
26,336
|
26,195
|
||||||||||||
Other intangible assets – net
|
14,788
|
14,310
|
13,518
|
13,180
|
1,275
|
1,136
|
||||||||||||
All other assets
|
70,504
|
70,808
|
23,940
|
23,708
|
47,164
|
47,366
|
||||||||||||
Assets of businesses held for sale
|
48
|
50
|
-
|
-
|
48
|
50
|
||||||||||||
Assets of discontinued operations
|
1,458
|
2,339
|
9
|
9
|
1,449
|
2,330
|
||||||||||||
Total assets(b)
|
$
|
652,252
|
$
|
656,285
|
$
|
229,418
|
$
|
225,901
|
$
|
510,447
|
$
|
516,829
|
||||||
Liabilities and equity
|
||||||||||||||||||
Short-term borrowings
|
$
|
76,121
|
$
|
77,890
|
$
|
1,547
|
$
|
1,841
|
$
|
75,102
|
$
|
77,298
|
||||||
Accounts payable, principally trade accounts
|
17,206
|
16,471
|
15,718
|
16,353
|
7,740
|
6,549
|
||||||||||||
Progress collections and price adjustments accrued
|
12,804
|
13,125
|
12,817
|
13,152
|
-
|
-
|
||||||||||||
Dividends payable
|
2,206
|
2,220
|
2,206
|
2,220
|
-
|
-
|
||||||||||||
Other GE current liabilities
|
13,622
|
13,381
|
13,622
|
13,381
|
-
|
-
|
||||||||||||
Non-recourse borrowings of consolidated
|
||||||||||||||||||
securitization entities
|
28,724
|
30,124
|
-
|
-
|
28,724
|
30,124
|
||||||||||||
Bank deposits
|
54,743
|
53,361
|
-
|
-
|
54,743
|
53,361
|
||||||||||||
Long-term borrowings
|
220,992
|
221,665
|
14,469
|
11,515
|
206,654
|
210,279
|
||||||||||||
Investment contracts, insurance liabilities
|
||||||||||||||||||
and insurance annuity benefits
|
27,019
|
26,544
|
-
|
-
|
27,604
|
26,979
|
||||||||||||
All other liabilities
|
59,147
|
61,057
|
40,841
|
40,955
|
18,773
|
20,531
|
||||||||||||
Deferred income taxes
|
381
|
(275)
|
(4,575)
|
(5,061)
|
4,956
|
4,786
|
||||||||||||
Liabilities of businesses held for sale
|
2
|
6
|
-
|
-
|
2
|
6
|
||||||||||||
Liabilities of discontinued operations
|
1,266
|
3,933
|
144
|
143
|
1,122
|
3,790
|
||||||||||||
Total liabilities(b)
|
514,233
|
519,502
|
96,789
|
94,499
|
425,420
|
433,703
|
||||||||||||
GECC preferred stock (50,000 shares outstanding
|
||||||||||||||||||
at both March 31, 2014 and December 31, 2013)
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||
Common stock (10,027,765,000 and 10,060,881,000
|
||||||||||||||||||
shares outstanding at March 31, 2014 and
|
||||||||||||||||||
December 31, 2013, respectively)
|
702
|
702
|
702
|
702
|
-
|
-
|
||||||||||||
Accumulated other comprehensive income (loss) – net(c)
|
||||||||||||||||||
Investment securities
|
764
|
307
|
764
|
307
|
793
|
309
|
||||||||||||
Currency translation adjustments
|
177
|
126
|
177
|
126
|
(773)
|
(687)
|
||||||||||||
Cash flow hedges
|
(189)
|
(257)
|
(189)
|
(257)
|
(225)
|
(293)
|
||||||||||||
Benefit plans
|
(8,601)
|
(9,296)
|
(8,601)
|
(9,296)
|
(381)
|
(363)
|
||||||||||||
Other capital
|
32,544
|
32,494
|
32,544
|
32,494
|
32,563
|
32,563
|
||||||||||||
Retained earnings
|
149,840
|
149,051
|
149,840
|
149,051
|
52,610
|
51,165
|
||||||||||||
Less common stock held in treasury
|
(43,401)
|
(42,561)
|
(43,401)
|
(42,561)
|
-
|
-
|
||||||||||||
Total GE shareowners’ equity
|
131,836
|
130,566
|
131,836
|
130,566
|
84,587
|
82,694
|
||||||||||||
Noncontrolling interests(d)
|
6,183
|
6,217
|
793
|
836
|
440
|
432
|
||||||||||||
Total equity
|
138,019
|
136,783
|
132,629
|
131,402
|
85,027
|
83,126
|
||||||||||||
Total liabilities and equity
|
$
|
652,252
|
$
|
656,285
|
$
|
229,418
|
$
|
225,901
|
$
|
510,447
|
$
|
516,829
|
||||||
(a)
|
Represents the adding together of all affiliated companies except General Electric Capital Corporation (GECC or Financial Services), which is presented on a one-line basis.
|
(b)
|
Our consolidated assets at March 31, 2014 include total assets of $46,492 million of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs. These assets include net financing receivables of $40,749 million and investment securities of $3,797 million. Our consolidated liabilities at March 31, 2014 include liabilities of certain VIEs for which the VIE creditors do not have recourse to GE. These liabilities include non-recourse borrowings of consolidated securitization entities (CSEs) of $27,175 million. See Note 16.
|
(c)
|
The sum of accumulated other comprehensive income (loss) (AOCI) attributable to the Company was $(7,849) million and $(9,120) million at March 31, 2014 and December 31, 2013, respectively.
|
(d)
|
Included AOCI attributable to noncontrolling interests of $(180) million at both March 31, 2014 and December 31, 2013.
|
Three months ended March 31 (Unaudited)
|
||||||||||||||||||
Consolidated
|
GE(a)
|
Financial Services (GECC)
|
||||||||||||||||
(In millions)
|
2014
|
2013
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Cash flows – operating activities
|
||||||||||||||||||
Net earnings
|
$
|
2,952
|
$
|
3,511
|
$
|
2,941
|
$
|
3,500
|
$
|
1,956
|
$
|
1,829
|
||||||
Less: net earnings (loss) attributable to noncontrolling
interests
|
(47)
|
(16)
|
(58)
|
(27)
|
11
|
11
|
||||||||||||
Net earnings attributable to the Company
|
2,999
|
3,527
|
2,999
|
3,527
|
1,945
|
1,818
|
||||||||||||
(Earnings) loss from discontinued operations
|
(12)
|
120
|
(12)
|
120
|
(12)
|
120
|
||||||||||||
Adjustments to reconcile net earnings attributable to the
|
||||||||||||||||||
Company to cash provided from operating activities
|
||||||||||||||||||
Depreciation and amortization of property,
|
||||||||||||||||||
plant and equipment
|
2,275
|
2,309
|
659
|
612
|
1,616
|
1,697
|
||||||||||||
Earnings from continuing operations retained by GECC(b)
|
-
|
-
|
(1,433)
|
(1,938)
|
-
|
-
|
||||||||||||
Deferred income taxes
|
(1,964)
|
(1,511)
|
(341)
|
(1,762)
|
(1,623)
|
251
|
||||||||||||
Decrease (increase) in GE current receivables
|
482
|
562
|
(143)
|
(635)
|
-
|
-
|
||||||||||||
Decrease (increase) in inventories
|
(1,445)
|
(977)
|
(1,453)
|
(963)
|
13
|
(1)
|
||||||||||||
Increase (decrease) in accounts payable
|
1,007
|
750
|
165
|
134
|
887
|
614
|
||||||||||||
Increase (decrease) in GE progress collections
|
(334)
|
598
|
(347)
|
598
|
-
|
-
|
||||||||||||
Provision for losses on GECC financing receivables
|
970
|
1,457
|
-
|
-
|
970
|
1,457
|
||||||||||||
All other operating activities
|
986
|
(2,124)
|
1,656
|
507
|
(638)
|
(2,802)
|
||||||||||||
Cash from (used for) operating activities – continuing
|
||||||||||||||||||
operations
|
4,964
|
4,711
|
1,750
|
200
|
3,158
|
3,154
|
||||||||||||
Cash from (used for) operating activities – discontinued
|
||||||||||||||||||
operations
|
(3)
|
(101)
|
-
|
(2)
|
(3)
|
(99)
|
||||||||||||
Cash from (used for) operating activities
|
4,961
|
4,610
|
1,750
|
198
|
3,155
|
3,055
|
||||||||||||
Cash flows – investing activities
|
||||||||||||||||||
Additions to property, plant and equipment
|
(3,361)
|
(3,644)
|
(1,090)
|
(975)
|
(2,361)
|
(2,696)
|
||||||||||||
Dispositions of property, plant and equipment
|
1,192
|
829
|
-
|
-
|
1,192
|
829
|
||||||||||||
Net decrease (increase) in GECC financing receivables
|
3,169
|
5,209
|
-
|
-
|
3,983
|
6,326
|
||||||||||||
Proceeds from sale of discontinued operations
|
232
|
-
|
-
|
-
|
232
|
-
|
||||||||||||
Proceeds from principal business dispositions
|
20
|
272
|
20
|
111
|
-
|
161
|
||||||||||||
Proceeds from sale of equity interest in NBCU LLC
|
-
|
16,699
|
-
|
16,699
|
-
|
-
|
||||||||||||
Net cash from (payments for) principal businesses purchased
|
(1,454)
|
6,383
|
(1,454)
|
(9)
|
-
|
6,392
|
||||||||||||
All other investing activities
|
2,084
|
5,654
|
81
|
(249)
|
3,009
|
6,226
|
||||||||||||
Cash from (used for) investing activities – continuing
|
||||||||||||||||||
operations
|
1,882
|
31,402
|
(2,443)
|
15,577
|
6,055
|
17,238
|
||||||||||||
Cash from (used for) investing activities – discontinued
|
||||||||||||||||||
operations
|
(90)
|
83
|
-
|
2
|
(90)
|
81
|
||||||||||||
Cash from (used for) investing activities
|
1,792
|
31,485
|
(2,443)
|
15,579
|
5,965
|
17,319
|
||||||||||||
Cash flows – financing activities
|
||||||||||||||||||
Net increase (decrease) in borrowings (maturities of
|
||||||||||||||||||
90 days or less)
|
(3,330)
|
(9,849)
|
(756)
|
(529)
|
(3,750)
|
(9,457)
|
||||||||||||
Net increase (decrease) in bank deposits
|
1,175
|
(3,237)
|
-
|
-
|
1,175
|
(3,237)
|
||||||||||||
Newly issued debt (maturities longer than 90 days)
|
8,775
|
17,521
|
3,034
|
92
|
5,743
|
17,430
|
||||||||||||
Repayments and other reductions (maturities longer
|
||||||||||||||||||
than 90 days)
|
(11,601)
|
(23,465)
|
(35)
|
(5,013)
|
(11,566)
|
(18,452)
|
||||||||||||
Net dispositions (purchases) of GE shares for treasury
|
(1,337)
|
(1,733)
|
(1,337)
|
(1,733)
|
-
|
-
|
||||||||||||
Dividends paid to shareowners
|
(2,223)
|
(1,983)
|
(2,223)
|
(1,983)
|
(500)
|
-
|
||||||||||||
All other financing activities
|
46
|
(195)
|
37
|
(29)
|
9
|
(166)
|
||||||||||||
Cash from (used for) financing activities – continuing
|
||||||||||||||||||
operations
|
(8,495)
|
(22,941)
|
(1,280)
|
(9,195)
|
(8,889)
|
(13,882)
|
||||||||||||
Cash from (used for) financing activities – discontinued
|
||||||||||||||||||
operations
|
(6)
|
(15)
|
-
|
-
|
(6)
|
(15)
|
||||||||||||
Cash from (used for) financing activities
|
(8,501)
|
(22,956)
|
(1,280)
|
(9,195)
|
(8,895)
|
(13,897)
|
||||||||||||
Effect of currency exchange rate changes on cash
|
||||||||||||||||||
and equivalents
|
73
|
(714)
|
(19)
|
(17)
|
92
|
(697)
|
||||||||||||
Increase (decrease) in cash and equivalents
|
(1,675)
|
12,425
|
(1,992)
|
6,565
|
317
|
5,780
|
||||||||||||
Cash and equivalents at beginning of year
|
88,787
|
77,459
|
13,682
|
15,509
|
75,105
|
62,044
|
||||||||||||
Cash and equivalents at March 31
|
87,112
|
89,884
|
11,690
|
22,074
|
75,422
|
67,824
|
||||||||||||
Less: cash and equivalents of discontinued operations
|
||||||||||||||||||
at March 31
|
133
|
158
|
-
|
-
|
133
|
158
|
||||||||||||
Cash and equivalents of continuing operations
|
||||||||||||||||||
at March 31
|
$
|
86,979
|
$
|
89,726
|
$
|
11,690
|
$
|
22,074
|
$
|
75,289
|
$
|
67,666
|
||||||
(a)
|
Represents the adding together of all affiliated companies except General Electric Capital Corporation (GECC or Financial Services), which is presented on a one-line basis.
|
(b)
|
Represents GECC earnings from continuing operations attributable to the Company, net of GECC dividends paid to GE.
|
Three months ended March 31
|
|||||||||||
(In millions)
|
2014
|
2013
|
|||||||||
Operations
|
|||||||||||
Total revenues and other income (loss)
|
$
|
29
|
|
$
|
54
|
||||||
Earnings (loss) from discontinued operations
|
|
||||||||||
before income taxes
|
$
|
(14)
|
|
$
|
(142)
|
||||||
Benefit (provision) for income taxes
|
7
|
|
124
|
||||||||
Earnings (loss) from discontinued operations,
|
|
||||||||||
net of taxes
|
$
|
(7)
|
|
$
|
(18)
|
||||||
|
|||||||||||
Disposal
|
|
||||||||||
Gain (loss) on disposal before income taxes
|
$
|
18
|
|
$
|
(187)
|
||||||
Benefit (provision) for income taxes
|
1
|
|
85
|
||||||||
Gain (loss) on disposal, net of taxes
|
$
|
19
|
|
$
|
(102)
|
||||||
|
|||||||||||
Earnings (loss) from discontinued operations,
|
|
||||||||||
net of taxes(a)
|
$
|
12
|
|
$
|
(120)
|
||||||
(a)
|
The sum of GE industrial earnings (loss) from discontinued operations, net of taxes, and GECC earnings (loss) from discontinued operations, net of taxes, is reported as GE earnings (loss) from discontinued operations, net of taxes, on the Condensed Statement of Earnings.
|
(In millions)
|
March 31, 2014
|
December 31, 2013
|
||||||||
Assets
|
||||||||||
Cash and equivalents
|
$
|
133
|
|
$
|
232
|
|||||
Financing receivables – net
|
1
|
711
|
||||||||
Other
|
1,324
|
|
1,396
|
|||||||
Assets of discontinued operations
|
$
|
1,458
|
|
$
|
2,339
|
|||||
|
|
|
||||||||
Liabilities
|
|
|
|
|||||||
Deferred income taxes
|
$
|
258
|
$
|
248
|
||||||
Other
|
1,008
|
|
3,685
|
|||||||
Liabilities of discontinued operations
|
$
|
1,266
|
|
$
|
3,933
|
|||||
Three months ended March 31
|
||||||
(In millions)
|
2014
|
2013
|
||||
Balance, beginning of period
|
|
$
|
800
|
|
$
|
633
|
Provision
|
-
|
107
|
||||
Claim resolutions
|
|
(250)
|
|
-
|
||
Balance, end of period
|
|
$
|
550
|
|
$
|
740
|
March 31, 2014
|
December 31, 2013
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
Gross
|
||||||||||||||||||||
Amortized
|
unrealized
|
unrealized
|
Estimated
|
Amortized
|
unrealized
|
unrealized
|
Estimated
|
||||||||||||||||
(In millions)
|
cost
|
gains
|
losses
|
fair value
|
cost
|
gains
|
losses
|
fair value
|
|||||||||||||||
GE
|
|||||||||||||||||||||||
Debt
|
|||||||||||||||||||||||
U.S. corporate
|
$
|
22
|
$
|
11
|
$
|
-
|
$
|
33
|
$
|
21
|
$
|
14
|
$
|
-
|
$
|
35
|
|||||||
Corporate – non-U.S.
|
13
|
-
|
-
|
13
|
13
|
-
|
(1)
|
12
|
|||||||||||||||
Equity
|
|||||||||||||||||||||||
Available-for-sale
|
301
|
9
|
(70)
|
240
|
302
|
9
|
(41)
|
270
|
|||||||||||||||
Trading
|
-
|
-
|
-
|
-
|
6
|
-
|
-
|
6
|
|||||||||||||||
336
|
20
|
(70)
|
286
|
342
|
23
|
(42)
|
323
|
||||||||||||||||
GECC
|
|||||||||||||||||||||||
Debt
|
|||||||||||||||||||||||
U.S. corporate
|
19,711
|
3,088
|
(138)
|
22,661
|
19,600
|
2,323
|
(217)
|
21,706
|
|||||||||||||||
State and municipal
|
5,115
|
409
|
(130)
|
5,394
|
4,245
|
235
|
(191)
|
4,289
|
|||||||||||||||
Residential mortgage-
|
|||||||||||||||||||||||
backed(a)
|
1,770
|
143
|
(39)
|
1,874
|
1,819
|
139
|
(48)
|
1,910
|
|||||||||||||||
Commercial mortgage-backed
|
2,986
|
198
|
(61)
|
3,123
|
2,929
|
188
|
(82)
|
3,035
|
|||||||||||||||
Asset-backed
|
7,347
|
32
|
(41)
|
7,338
|
7,373
|
60
|
(46)
|
7,387
|
|||||||||||||||
Corporate – non-U.S.
|
1,716
|
137
|
(64)
|
1,789
|
1,741
|
103
|
(86)
|
1,758
|
|||||||||||||||
Government – non-U.S.
|
2,058
|
103
|
(3)
|
2,158
|
2,336
|
81
|
(7)
|
2,410
|
|||||||||||||||
U.S. government and federal
|
|||||||||||||||||||||||
agency
|
707
|
48
|
(18)
|
737
|
752
|
45
|
(27)
|
770
|
|||||||||||||||
Retained interests
|
64
|
11
|
-
|
75
|
64
|
8
|
-
|
72
|
|||||||||||||||
Equity
|
|||||||||||||||||||||||
Available-for-sale
|
195
|
46
|
(8)
|
233
|
203
|
51
|
(3)
|
251
|
|||||||||||||||
Trading
|
68
|
-
|
-
|
68
|
74
|
-
|
-
|
74
|
|||||||||||||||
41,737
|
4,215
|
(502)
|
45,450
|
41,136
|
3,233
|
(707)
|
43,662
|
||||||||||||||||
Eliminations
|
(3)
|
-
|
-
|
(3)
|
(4)
|
-
|
-
|
(4)
|
|||||||||||||||
Total
|
$
|
42,070
|
$
|
4,235
|
$
|
(572)
|
$
|
45,733
|
$
|
41,474
|
$
|
3,256
|
$
|
(749)
|
$
|
43,981
|
|||||||
(a)
|
Substantially collateralized by U.S. mortgages. At March 31, 2014, $1,225 million relates to securities issued by government-sponsored entities and $649 million relates to securities of private-label issuers. Securities issued by private-label issuers are collateralized primarily by pools of individual direct mortgage loans of financial institutions.
|
In loss position for
|
||||||||||||
Less than 12 months
|
12 months or more
|
|||||||||||
Gross
|
Gross
|
|||||||||||
Estimated
|
unrealized
|
Estimated
|
unrealized
|
|||||||||
(In millions)
|
fair value
|
(a)
|
losses(a)(b)
|
fair value
|
losses(b)
|
|||||||
March 31, 2014
|
||||||||||||
Debt
|
||||||||||||
U.S. corporate
|
$
|
1,578
|
$
|
(63)
|
$
|
563
|
$
|
(75)
|
||||
State and municipal
|
942
|
(37)
|
347
|
(93)
|
||||||||
Residential mortgage-backed
|
187
|
(6)
|
430
|
(33)
|
||||||||
Commercial mortgage-backed
|
254
|
(11)
|
803
|
(50)
|
||||||||
Asset-backed
|
101
|
(1)
|
294
|
(40)
|
||||||||
Corporate – non-U.S.
|
56
|
(1)
|
430
|
(63)
|
||||||||
Government – non-U.S.
|
1,098
|
(3)
|
52
|
-
|
||||||||
U.S. government and federal agency
|
238
|
(18)
|
-
|
-
|
||||||||
Retained interests
|
1
|
-
|
1
|
-
|
||||||||
Equity
|
250
|
(78)
|
-
|
-
|
||||||||
Total
|
$
|
4,705
|
$
|
(218)
|
$
|
2,920
|
$
|
(354)
|
(c)
|
|||
December 31, 2013
|
||||||||||||
Debt
|
||||||||||||
U.S. corporate
|
$
|
2,170
|
|
$
|
(122)
|
|
$
|
598
|
|
$
|
(95)
|
|
State and municipal
|
1,076
|
|
(82)
|
|
367
|
|
(109)
|
|||||
Residential mortgage-backed
|
232
|
|
(11)
|
|
430
|
|
(37)
|
|||||
Commercial mortgage-backed
|
396
|
|
(24)
|
|
780
|
|
(58)
|
|||||
Asset-backed
|
112
|
|
(2)
|
|
359
|
|
(44)
|
|||||
Corporate – non-U.S.
|
108
|
|
(4)
|
|
454
|
|
(83)
|
|||||
Government – non-U.S.
|
1,479
|
|
(6)
|
|
42
|
|
(1)
|
|||||
U.S. government and federal agency
|
229
|
|
(27)
|
|
254
|
|
-
|
|||||
Retained interests
|
2
|
|
-
|
|
-
|
|
-
|
|||||
Equity
|
253
|
|
(44)
|
|
-
|
|
-
|
|||||
Total
|
$
|
6,057
|
|
$
|
(322)
|
|
$
|
3,284
|
|
$
|
(427)
|
|
(a)
|
Includes the estimated fair value of and gross unrealized losses on Corporate-non-U.S. and Equity securities held by GE. At March 31, 2014, the estimated fair value of and gross unrealized losses on Corporate-non-U.S. securities were $13 million and an insignificant amount, respectively. The estimated fair value of and gross unrealized losses on Equity securities were $210 million and $(70) million, respectively. At December 31, 2013, the estimated fair value of and gross unrealized losses on Corporate-non-U.S. securities were $12 million and $(1) million, respectively. The estimated fair value of and gross unrealized losses on Equity securities were $222 million and $(41) million, respectively.
|
(b)
|
Includes gross unrealized losses related to securities that had other-than-temporary impairments previously recognized of $(85) million at March 31, 2014.
|
(c)
|
The majority relate to debt securities held to support obligations to holders of GICs and more than 70% are debt securities that were considered to be investment-grade by the major rating agencies at March 31, 2014.
|
Pre-tax, Other-Than-Temporary Impairments on Investment Securities
|
|||||||||||
Three months ended March 31
|
|||||||||||
(In millions)
|
2014
|
2013
|
|||||||||
Total pre-tax, OTTI recognized
|
$
|
38
|
$
|
302
|
|||||||
Less: pre-tax, OTTI recognized in AOCI
|
(4)
|
(11)
|
|||||||||
Pre-tax, OTTI recognized in earnings(a)
|
$
|
34
|
$
|
291
|
|||||||
(a)
|
Included pre-tax, other-than-temporary impairments recorded in earnings related to equity securities of $1 million during both the three months ended March 31, 2014 and 2013.
|
Changes in Cumulative Credit Loss Impairments Recognized on Debt Securities Still Held
|
|||||||||||
Three months ended March 31
|
|||||||||||
(In millions)
|
2014
|
2013
|
|||||||||
Cumulative credit loss impairments recognized,
|
|||||||||||
beginning of period
|
$
|
1,192
|
$
|
588
|
|||||||
Credit loss impairments recognized on securities
|
|||||||||||
not previously impaired
|
-
|
263
|
|||||||||
Incremental credit loss impairments recognized
|
|||||||||||
on securities previously impaired
|
29
|
12
|
|||||||||
Less: credit loss impairments previously
|
|||||||||||
recognized on securities sold during the period
|
(51)
|
(1)
|
|||||||||
Cumulative credit loss impairments recognized,
|
|||||||||||
end of period
|
$
|
1,170
|
$
|
862
|
|||||||
Contractual Maturities of Investment in Available-for-Sale Debt Securities
(Excluding Mortgage-Backed and Asset-Backed Securities)
|
|||||||||||
Amortized
|
Estimated
|
||||||||||
(In millions)
|
cost
|
fair value
|
|||||||||
Due
|
|||||||||||
Within one year
|
$
|
1,870
|
$
|
1,887
|
|||||||
After one year through five years
|
3,633
|
3,896
|
|||||||||
After five years through ten years
|
5,349
|
5,641
|
|||||||||
After ten years
|
18,490
|
21,361
|
|||||||||
Three months ended March 31
|
|||||||||||
(In millions)
|
2014
|
2013
|
|||||||||
GE
|
|||||||||||
Gains
|
$
|
-
|
$
|
1
|
|||||||
Losses, including impairments
|
-
|
(13)
|
|||||||||
Net
|
-
|
(12)
|
|||||||||
GECC
|
|||||||||||
Gains
|
19
|
62
|
|||||||||
Losses, including impairments
|
(36)
|
(278)
|
|||||||||
Net
|
(17)
|
(216)
|
|||||||||
Total
|
$
|
(17)
|
$
|
(228)
|
|||||||
(In millions)
|
March 31, 2014
|
December 31, 2013
|
|||||||||
Raw materials and work in process
|
$
|
10,447
|
$
|
10,220
|
|||||||
Finished goods
|
7,911
|
6,794
|
|||||||||
Unbilled shipments
|
766
|
584
|
|||||||||
19,124
|
17,598
|
||||||||||
Less revaluation to LIFO
|
(243)
|
(273)
|
|||||||||
Total
|
$
|
18,881
|
$
|
17,325
|
|||||||
(In millions)
|
March 31, 2014
|
December 31, 2013
|
|||||||||
Loans, net of deferred income(a)
|
$
|
226,135
|
$
|
231,268
|
|||||||
Investment in financing leases, net of deferred income
|
26,251
|
26,939
|
|||||||||
252,386
|
258,207
|
||||||||||
Allowance for losses
|
(5,144)
|
(5,178)
|
|||||||||
Financing receivables – net(b)
|
$
|
247,242
|
$
|
253,029
|
|||||||
(a)
|
Deferred income was $1,714 million and $2,013 million at March 31, 2014 and December 31, 2013, respectively.
|
(b)
|
Financing receivables at March 31, 2014 and December 31, 2013 included $532 million and $544 million, respectively, relating to loans that had been acquired in a transfer but have been subject to credit deterioration since origination.
|
(In millions)
|
March 31, 2014
|
December 31, 2013
|
|||||||||
Commercial
|
|||||||||||
CLL
|
|||||||||||
Americas
|
$
|
68,367
|
$
|
69,036
|
|||||||
International
|
46,208
|
47,431
|
|||||||||
Total CLL
|
114,575
|
116,467
|
|||||||||
Energy Financial Services
|
2,753
|
3,107
|
|||||||||
GE Capital Aviation Services (GECAS)
|
8,851
|
9,377
|
|||||||||
Other
|
139
|
318
|
|||||||||
Total Commercial
|
126,318
|
129,269
|
|||||||||
Real Estate
|
20,236
|
19,899
|
|||||||||
Consumer
|
|||||||||||
Non-U.S. residential mortgages
|
30,355
|
30,501
|
|||||||||
Non-U.S. installment and revolving credit
|
13,715
|
13,677
|
|||||||||
U.S. installment and revolving credit
|
52,887
|
55,854
|
|||||||||
Non-U.S. auto
|
1,957
|
2,054
|
|||||||||
Other
|
6,918
|
6,953
|
|||||||||
Total Consumer
|
105,832
|
109,039
|
|||||||||
Total financing receivables
|
252,386
|
258,207
|
|||||||||
Allowance for losses
|
(5,144)
|
(5,178)
|
|||||||||
Total financing receivables – net
|
$
|
247,242
|
$
|
253,029
|
|||||||
Allowance for Losses on Financing Receivables
|
|||||||||||||||||
Provision
|
|||||||||||||||||
Balance at
|
charged to
|
Gross
|
Balance at
|
||||||||||||||
(In millions)
|
January 1
|
operations
|
Other
|
(a)
|
write-offs
|
(b)
|
Recoveries
|
(b)
|
March 31
|
||||||||
2014
|
|||||||||||||||||
Commercial
|
|||||||||||||||||
CLL
|
|||||||||||||||||
Americas
|
$
|
473
|
$
|
84
|
$
|
(1)
|
$
|
(156)
|
$
|
19
|
$
|
419
|
|||||
International
|
505
|
18
|
2
|
(100)
|
24
|
449
|
|||||||||||
Total CLL
|
978
|
102
|
1
|
(256)
|
43
|
868
|
|||||||||||
Energy Financial Services
|
8
|
9
|
-
|
(2)
|
1
|
16
|
|||||||||||
GECAS
|
17
|
8
|
-
|
-
|
-
|
25
|
|||||||||||
Other
|
2
|
-
|
(2)
|
-
|
-
|
-
|
|||||||||||
Total Commercial
|
1,005
|
119
|
(1)
|
(258)
|
44
|
909
|
|||||||||||
Real Estate
|
192
|
(15)
|
2
|
(6)
|
2
|
175
|
|||||||||||
Consumer
|
|||||||||||||||||
Non-U.S. residential mortgages
|
358
|
10
|
5
|
(46)
|
9
|
336
|
|||||||||||
Non-U.S. installment and
|
|||||||||||||||||
revolving credit
|
594
|
71
|
8
|
(189)
|
104
|
588
|
|||||||||||
U.S. installment and
|
|||||||||||||||||
revolving credit
|
2,823
|
752
|
18
|
(785)
|
139
|
2,947
|
|||||||||||
Non-U.S. auto
|
56
|
12
|
2
|
(23)
|
14
|
61
|
|||||||||||
Other
|
150
|
21
|
(17)
|
(40)
|
14
|
128
|
|||||||||||
Total Consumer
|
3,981
|
866
|
16
|
(1,083)
|
280
|
4,060
|
|||||||||||
Total
|
$
|
5,178
|
$
|
970
|
$
|
17
|
$
|
(1,347)
|
$
|
326
|
$
|
5,144
|
|||||
2013
|
|||||||||||||||||
Commercial
|
|||||||||||||||||
CLL
|
|||||||||||||||||
Americas
|
$
|
496
|
$
|
71
|
$
|
(1)
|
$
|
(103)
|
$
|
30
|
$
|
493
|
|||||
International
|
525
|
94
|
(10)
|
(150)
|
24
|
483
|
|||||||||||
Total CLL
|
1,021
|
165
|
(11)
|
(253)
|
54
|
976
|
|||||||||||
Energy Financial Services
|
9
|
(1)
|
-
|
-
|
-
|
8
|
|||||||||||
GECAS
|
8
|
(1)
|
-
|
-
|
-
|
7
|
|||||||||||
Other
|
3
|
-
|
-
|
(1)
|
-
|
2
|
|||||||||||
Total Commercial
|
1,041
|
163
|
(11)
|
(254)
|
54
|
993
|
|||||||||||
Real Estate
|
320
|
(20)
|
(6)
|
(29)
|
-
|
265
|
|||||||||||
Consumer
|
|||||||||||||||||
Non-U.S. residential mortgages
|
480
|
56
|
(17)
|
(55)
|
12
|
476
|
|||||||||||
Non-U.S. installment and
|
|||||||||||||||||
revolving credit
|
582
|
180
|
(14)
|
(231)
|
140
|
657
|
|||||||||||
U.S. installment and
|
|||||||||||||||||
revolving credit
|
2,282
|
1,014
|
(50)
|
(744)
|
163
|
2,665
|
|||||||||||
Non-U.S. auto
|
67
|
17
|
(5)
|
(30)
|
17
|
66
|
|||||||||||
Other
|
172
|
47
|
7
|
(52)
|
7
|
181
|
|||||||||||
Total Consumer
|
3,583
|
1,314
|
(79)
|
(1,112)
|
339
|
4,045
|
|||||||||||
Total
|
$
|
4,944
|
$
|
1,457
|
$
|
(96)
|
$
|
(1,395)
|
$
|
393
|
$
|
5,303
|
|||||
(a)
|
Other primarily includes the effects of currency exchange.
|
(b)
|
Net write-offs (gross write-offs less recoveries) in certain portfolios may exceed the beginning allowance for losses as a result of losses that are incurred subsequent to the beginning of the fiscal year due to information becoming available during the current year, which may identify further deterioration on existing financing receivables.
|
March 31, 2014
|
December 31, 2013
|
|||||||||||||||||
Over 30 days
|
Over 90 days
|
Over 30 days
|
Over 90 days
|
|||||||||||||||
past due
|
past due
|
Nonaccrual
|
past due
|
past due
|
Nonaccrual
|
|||||||||||||
Commercial
|
||||||||||||||||||
CLL
|
||||||||||||||||||
Americas
|
$
|
713
|
$
|
390
|
$
|
1,239
|
$
|
755
|
$
|
359
|
$
|
1,275
|
||||||
International
|
1,743
|
946
|
1,415
|
1,490
|
820
|
1,459
|
||||||||||||
Total CLL
|
2,456
|
1,336
|
2,654
|
2,245
|
1,179
|
2,734
|
||||||||||||
Energy Financial Services
|
-
|
-
|
43
|
-
|
-
|
4
|
||||||||||||
GECAS
|
1
|
-
|
275
|
-
|
-
|
-
|
||||||||||||
Other
|
-
|
-
|
-
|
-
|
-
|
6
|
||||||||||||
Total Commercial
|
2,457
|
1,336
|
2,972
|
(a)
|
2,245
|
1,179
|
2,744
|
(a)
|
||||||||||
Real Estate
|
263
|
207
|
2,383
|
(b)
|
247
|
212
|
2,551
|
(b)
|
||||||||||
Consumer
|
||||||||||||||||||
Non-U.S. residential mortgages
|
3,130
|
2,082
|
2,140
|
3,406
|
2,104
|
2,161
|
||||||||||||
Non-U.S. installment and revolving credit
|
533
|
152
|
73
|
512
|
146
|
88
|
||||||||||||
U.S. installment and revolving credit
|
2,169
|
1,028
|
2
|
2,442
|
1,105
|
2
|
||||||||||||
Non-U.S. auto
|
93
|
12
|
16
|
89
|
13
|
18
|
||||||||||||
Other
|
165
|
89
|
335
|
172
|
99
|
351
|
||||||||||||
Total Consumer
|
6,090
|
3,363
|
(c)
|
2,566
|
(d)
|
6,621
|
3,467
|
(c)
|
2,620
|
(d)
|
||||||||
Total
|
$
|
8,810
|
$
|
4,906
|
$
|
7,921
|
$
|
9,113
|
$
|
4,858
|
$
|
7,915
|
||||||
Total as a percent of financing receivables
|
3.5
|
%
|
1.9
|
%
|
3.1
|
%
|
3.5
|
%
|
1.9
|
%
|
3.1
|
%
|
||||||
(a)
|
Includes $1,596 million and $1,397 million at March 31, 2014 and December 31, 2013, respectively, that are currently paying in accordance with their contractual terms.
|
(b)
|
Includes $2,127 million and $2,308 million at March 31, 2014 and December 31, 2013, respectively, that are currently paying in accordance with their contractual terms.
|
(c)
|
Includes $1,150 million and $1,197 million of Consumer loans at March 31, 2014 and December 31, 2013, respectively, that are over 90 days past due and continue to accrue interest until the accounts are written off in the period that the account becomes 180 days past due.
|
(d)
|
Includes $311 million and $323 million at March 31, 2014 and December 31, 2013, respectively, that are currently paying in accordance with their contractual terms.
|
With no specific allowance
|
With a specific allowance
|
|||||||||||||||||||
Recorded
|
Unpaid
|
Average
|
Recorded
|
Unpaid
|
Average
|
|||||||||||||||
investment
|
principal
|
investment
|
investment
|
principal
|
Associated
|
investment
|
||||||||||||||
(In millions)
|
in loans
|
balance
|
in loans
|
in loans
|
balance
|
allowance
|
in loans
|
|||||||||||||
March 31, 2014
|
||||||||||||||||||||
Commercial
|
||||||||||||||||||||
CLL
|
||||||||||||||||||||
Americas
|
$
|
1,792
|
$
|
2,385
|
$
|
1,731
|
$
|
257
|
$
|
354
|
$
|
49
|
$
|
337
|
||||||
International(a)
|
1,214
|
2,072
|
1,159
|
602
|
918
|
169
|
647
|
|||||||||||||
Total CLL
|
3,006
|
4,457
|
2,890
|
859
|
1,272
|
218
|
984
|
|||||||||||||
Energy Financial Services
|
18
|
18
|
9
|
26
|
26
|
3
|
15
|
|||||||||||||
GECAS
|
-
|
-
|
-
|
65
|
65
|
8
|
32
|
|||||||||||||
Other
|
-
|
-
|
1
|
-
|
-
|
-
|
2
|
|||||||||||||
Total Commercial(b)
|
3,024
|
4,475
|
2,900
|
950
|
1,363
|
229
|
1,033
|
|||||||||||||
Real Estate(c)
|
2,925
|
3,448
|
2,770
|
737
|
871
|
53
|
991
|
|||||||||||||
Consumer(d)
|
132
|
169
|
120
|
2,836
|
2,854
|
560
|
2,857
|
|||||||||||||
Total
|
$
|
6,081
|
$
|
8,092
|
$
|
5,790
|
$
|
4,523
|
$
|
5,088
|
$
|
842
|
$
|
4,881
|
||||||
December 31, 2013
|
||||||||||||||||||||
Commercial
|
||||||||||||||||||||
CLL
|
||||||||||||||||||||
Americas
|
$
|
1,670
|
$
|
2,187
|
$
|
2,154
|
$
|
417
|
$
|
505
|
$
|
96
|
$
|
509
|
||||||
International(a)
|
1,104
|
1,938
|
1,136
|
691
|
1,046
|
231
|
629
|
|||||||||||||
Total CLL
|
2,774
|
4,125
|
3,290
|
1,108
|
1,551
|
327
|
1,138
|
|||||||||||||
Energy Financial Services
|
-
|
-
|
-
|
4
|
4
|
1
|
2
|
|||||||||||||
GECAS
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
|||||||||||||
Other
|
2
|
3
|
9
|
4
|
4
|
-
|
5
|
|||||||||||||
Total Commercial(b)
|
2,776
|
4,128
|
3,299
|
1,116
|
1,559
|
328
|
1,146
|
|||||||||||||
Real Estate(c)
|
2,615
|
3,036
|
3,058
|
1,245
|
1,507
|
74
|
1,688
|
|||||||||||||
Consumer(d)
|
109
|
153
|
98
|
2,879
|
2,948
|
567
|
3,058
|
|||||||||||||
Total
|
$
|
5,500
|
$
|
7,317
|
$
|
6,455
|
$
|
5,240
|
$
|
6,014
|
$
|
969
|
$
|
5,892
|
||||||
(a)
|
Write-offs to net realizable value are recognized against the allowance for losses primarily in the reporting period in which management has deemed all or a portion of the financing receivable to be uncollectible, but not later than 360 days after initial recognition of a
specific
reserve for a collateral dependent loan. However, in accordance with regulatory standards that are applicable in Italy, commercial loans are considered uncollectible when there is demonstrable evidence of the debtor’s insolvency, which may result in write-offs occurring beyond 360 days after initial recognition of a specific reserve.
|
(b)
|
We recognized $57 million
,
$218 million and $53 million of interest income, including none, $60 million and $16 million on a cash basis, in the three months ended March 31, 2014, the year ended December 31, 2013 and the three months ended March 31, 2013,
respectively, principally in our CLL Americas business. The
total average investment in impaired loans for the three months ended March 31, 2014 and the year ended December 31, 2013 was $3,933 million and $4,445 million, respectively.
|
(c)
|
We recognized $19 million
,
$187 million and $57 million of interest income, including none, $135 million and $44 million on a cash basis, in the three months ended March 31, 2014
,
the year ended December 31, 2013 and the three months ended March 31, 2013, respectively. The total average investment in impaired loans for the three months ended March 31, 2014 and the year ended December 31, 2013 was $3,761 million and $4,746 million, respectively.
|
(d)
|
We recognized $46 million, $221 million and $57 million of interest income, including an insignificant amount, $3 million and $1 million on a cash basis, in the three months ended March 31, 2014, the year ended December 31, 2013 and the three months ended March 31, 2013, respectively, principally in our Consumer-U.S. installment and revolving credit portfolios. The total average investment in impaired loans for the three months ended March 31, 2014 and the year ended December 31, 2013 was $2,977 million and $3,156 million, respectively.
|
(In millions)
|
Non-impaired financing receivables
|
General reserves
|
Impaired loans
|
Specific reserves
|
|||||||
March 31, 2014
|
|||||||||||
Commercial
|
$
|
122,344
|
$
|
680
|
$
|
3,974
|
$
|
229
|
|||
Real Estate
|
16,574
|
122
|
3,662
|
53
|
|||||||
Consumer
|
102,864
|
3,500
|
2,968
|
560
|
|||||||
Total
|
$
|
241,782
|
$
|
4,302
|
$
|
10,604
|
$
|
842
|
|||
December 31, 2013
|
|||||||||||
Commercial
|
$
|
125,377
|
$
|
677
|
$
|
3,892
|
$
|
328
|
|||
Real Estate
|
16,039
|
118
|
3,860
|
74
|
|||||||
Consumer
|
106,051
|
3,414
|
2,988
|
567
|
|||||||
Total
|
$
|
247,467
|
$
|
4,209
|
$
|
10,740
|
$
|
969
|
|||
Commercial Financing Receivables Risk by Category
|
|||||||||||
Secured
|
|||||||||||
(In millions)
|
A
|
B
|
C
|
Total
|
|||||||
March 31, 2014
|
|||||||||||
CLL
|
|||||||||||
Americas
|
$
|
65,126
|
$
|
1,348
|
$
|
1,538
|
$
|
68,012
|
|||
International
|
43,537
|
565
|
1,439
|
45,541
|
|||||||
Total CLL
|
108,663
|
1,913
|
2,977
|
113,553
|
|||||||
Energy Financial Services
|
2,616
|
62
|
44
|
2,722
|
|||||||
GECAS
|
8,582
|
55
|
214
|
8,851
|
|||||||
Other
|
139
|
-
|
-
|
139
|
|||||||
Total
|
$
|
120,000
|
$
|
2,030
|
$
|
3,235
|
$
|
125,265
|
|||
December 31, 2013
|
|||||||||||
CLL
|
|||||||||||
Americas
|
$
|
65,545
|
$
|
1,587
|
$
|
1,554
|
$
|
68,686
|
|||
International
|
44,930
|
619
|
1,237
|
46,786
|
|||||||
Total CLL
|
110,475
|
2,206
|
2,791
|
115,472
|
|||||||
Energy Financial Services
|
2,969
|
9
|
-
|
2,978
|
|||||||
GECAS
|
9,175
|
50
|
152
|
9,377
|
|||||||
Other
|
318
|
-
|
-
|
318
|
|||||||
Total
|
$
|
122,937
|
$
|
2,265
|
$
|
2,943
|
$
|
128,145
|
|||
Loan-to-value ratio
|
|||||||||||||||||
March 31, 2014
|
December 31, 2013
|
||||||||||||||||
Less than
|
80% to
|
Greater than
|
Less than
|
80% to
|
Greater than
|
||||||||||||
(In millions)
|
80%
|
95%
|
95%
|
80%
|
95%
|
95%
|
|||||||||||
Debt
|
$
|
15,974
|
$
|
1,512
|
$
|
1,754
|
$
|
15,576
|
$
|
1,300
|
$
|
2,111
|
|||||
Loan-to-value ratio
|
|||||||||||||||||
March 31, 2014
|
December 31, 2013
|
||||||||||||||||
80% or
|
Greater than
|
Greater than
|
80% or
|
Greater than
|
Greater than
|
||||||||||||
(In millions)
|
less
|
80% to 90%
|
90%
|
less
|
80% to 90%
|
90%
|
|||||||||||
Non-U.S. residential mortgages
|
$
|
17,148
|
$
|
5,098
|
$
|
8,109
|
$
|
17,224
|
$
|
5,130
|
$
|
8,147
|
|||||
Internal ratings translated to approximate credit bureau equivalent score
|
|||||||||||||||||
March 31, 2014
|
December 31, 2013
|
||||||||||||||||
671 or
|
626 to
|
625 or
|
671 or
|
626 to
|
625 or
|
||||||||||||
(In millions)
|
higher
|
670
|
less
|
higher
|
670
|
less
|
|||||||||||
Non-U.S. installment and
|
|||||||||||||||||
revolving credit
|
$
|
8,033
|
$
|
3,117
|
$
|
2,565
|
$
|
8,310
|
$
|
2,855
|
$
|
2,512
|
|||||
U.S. installment and
|
|||||||||||||||||
revolving credit
|
34,388
|
10,817
|
7,682
|
36,723
|
11,101
|
8,030
|
|||||||||||
Non-U.S. auto
|
1,338
|
344
|
275
|
1,395
|
373
|
286
|
|||||||||||
(In millions)
|
March 31, 2014
|
December 31, 2013
|
|||||||||
Original cost
|
$
|
115,869
|
$
|
116,469
|
|||||||
Less accumulated depreciation and amortization
|
(48,126)
|
(47,642)
|
|||||||||
Property, plant and equipment – net
|
$
|
67,743
|
$
|
68,827
|
|||||||
Goodwill
|
|||||||||||
Dispositions,
|
|||||||||||
currency
|
|||||||||||
Balance at
|
exchange
|
Balance at
|
|||||||||
(In millions)
|
January 1, 2014
|
Acquisitions
|
and other
|
March 31, 2014
|
|||||||
Power & Water
|
$
|
8,822
|
$
|
-
|
$
|
34
|
$
|
8,856
|
|||
Oil & Gas
|
10,516
|
21
|
30
|
10,567
|
|||||||
Energy Management
|
4,748
|
-
|
75
|
4,823
|
|||||||
Aviation
|
9,103
|
-
|
168
|
9,271
|
|||||||
Healthcare
|
16,643
|
1,024
|
19
|
17,686
|
|||||||
Transportation
|
1,012
|
1
|
(32)
|
981
|
|||||||
Appliances & Lighting
|
606
|
-
|
-
|
606
|
|||||||
GE Capital
|
26,195
|
-
|
141
|
26,336
|
|||||||
Corporate
|
3
|
-
|
-
|
3
|
|||||||
Total
|
$
|
77,648
|
$
|
1,046
|
$
|
435
|
$
|
79,129
|
|||
Other Intangible Assets - Net
|
|||||||||||
(In millions)
|
March 31, 2014
|
December 31, 2013
|
|||||||||
Intangible assets subject to amortization
|
$
|
14,645
|
$
|
14,150
|
|||||||
Indefinite-lived intangible assets(a)
|
143
|
160
|
|||||||||
Total
|
$
|
14,788
|
$
|
14,310
|
|||||||
(a)
|
Indefinite-lived intangible assets principally comprise trademarks and in-process research and development.
|
Intangible Assets Subject to Amortization
|
|||||||||||||||||
March 31, 2014
|
December 31, 2013
|
||||||||||||||||
Gross
|
Gross
|
||||||||||||||||
carrying
|
Accumulated
|
carrying
|
Accumulated
|
||||||||||||||
(In millions)
|
amount
|
amortization
|
Net
|
amount
|
amortization
|
Net
|
|||||||||||
Customer-related
|
$
|
8,426
|
$
|
(2,402)
|
$
|
6,024
|
$
|
7,938
|
$
|
(2,312)
|
$
|
5,626
|
|||||
Patents and technology
|
6,785
|
(2,718)
|
4,067
|
6,602
|
(2,621)
|
3,981
|
|||||||||||
Capitalized software
|
8,478
|
(5,420)
|
3,058
|
8,256
|
(5,252)
|
3,004
|
|||||||||||
Trademarks
|
1,370
|
(312)
|
1,058
|
1,356
|
(295)
|
1,061
|
|||||||||||
Lease valuations
|
679
|
(480)
|
199
|
703
|
(498)
|
205
|
|||||||||||
Present value of future profits(a)
|
583
|
(583)
|
-
|
574
|
(574)
|
-
|
|||||||||||
All other
|
599
|
(360)
|
239
|
632
|
(359)
|
273
|
|||||||||||
Total
|
$
|
26,920
|
$
|
(12,275)
|
$
|
14,645
|
$
|
26,061
|
$
|
(11,911)
|
$
|
14,150
|
|||||
(a)
|
Balances at March 31, 2014 and December 31, 2013 reflect adjustments of $316 million and $322 million, respectively, to the present value of future profits in our run-off insurance operation to reflect the effects that would have been recognized had the related unrealized investment securities holding gains and losses actually been realized.
|
(In millions)
|
March 31, 2014
|
December 31, 2013
|
|||||||||
Short-term borrowings
|
|||||||||||
GE
|
|||||||||||
Commercial paper
|
$
|
350
|
$
|
-
|
|||||||
Payable to banks
|
520
|
346
|
|||||||||
Current portion of long-term borrowings
|
70
|
70
|
|||||||||
Other
|
607
|
1,425
|
|||||||||
Total GE short-term borrowings
|
1,547
|
1,841
|
|||||||||
GECC
|
|||||||||||
Commercial paper
|
|||||||||||
U.S.
|
21,229
|
24,877
|
|||||||||
Non-U.S.
|
3,817
|
4,168
|
|||||||||
Current portion of long-term borrowings(a)(b)
|
40,720
|
39,215
|
|||||||||
GE Interest Plus notes(c)
|
8,935
|
8,699
|
|||||||||
Other(b)
|
401
|
339
|
|||||||||
Total GECC short-term borrowings
|
75,102
|
77,298
|
|||||||||
Eliminations
|
(528)
|
(1,249)
|
|||||||||
Total short-term borrowings
|
$
|
76,121
|
$
|
77,890
|
|||||||
Long-term borrowings
|
|||||||||||
GE
|
|||||||||||
Senior notes
|
$
|
13,941
|
$
|
10,968
|
|||||||
Payable to banks
|
9
|
10
|
|||||||||
Other
|
519
|
537
|
|||||||||
Total GE long-term borrowings
|
14,469
|
11,515
|
|||||||||
GECC
|
|||||||||||
Senior unsecured notes(a)(d)
|
183,271
|
186,433
|
|||||||||
Subordinated notes(e)
|
4,860
|
4,821
|
|||||||||
Subordinated debentures(f)
|
7,530
|
7,462
|
|||||||||
Other(b)
|
10,993
|
11,563
|
|||||||||
Total GECC long-term borrowings
|
206,654
|
210,279
|
|||||||||
Eliminations
|
(131)
|
(129)
|
|||||||||
Total long-term borrowings
|
$
|
220,992
|
$
|
221,665
|
|||||||
Non-recourse borrowings of consolidated securitization entities(g)
|
$
|
28,724
|
$
|
30,124
|
|||||||
Bank deposits(h)
|
$
|
54,743
|
$
|
53,361
|
|||||||
Total borrowings and bank deposits
|
$
|
380,580
|
$
|
383,040
|
|||||||
(a)
|
Included $481 million of obligations to holders of GICs at both March 31, 2014 and December 31, 2013, respectively. These obligations included conditions under which certain GIC holders could require immediate repayment of their investment should the long-term credit ratings of GECC fall below AA-/Aa3. The remaining outstanding GICs will continue to be subject to their scheduled maturities and individual terms, which may include provisions permitting redemption upon a downgrade of one or more of GECC’s ratings, among other things.
|
(b)
|
Included $9,338 million and $9,468 million of funding secured by real estate, aircraft and other collateral at March 31, 2014 and December 31, 2013, respectively, of which $2,733 million and $2,868 million is non-recourse to GECC at March 31, 2014 and December 31, 2013, respectively.
|
(c)
|
Entirely variable denomination floating-rate demand notes.
|
(d)
|
Included $700 million of debt at both March 31, 2014 and December 31, 2013 raised by a funding entity related to Penske Truck Leasing Co., L.P. (PTL). GECC, as co-issuer and co-guarantor of the debt, reports this amount as borrowings in its financial statements. GECC has been indemnified by the other limited partners of PTL for their proportionate share of the debt obligation.
|
(e)
|
Included $300 million of subordinated notes guaranteed by GE at both March 31, 2014 and December 31, 2013.
|
(f)
|
Subordinated debentures receive rating agency equity credit.
|
(g)
|
Included at March 31, 2014 and December 31, 2013, were $9,878 million and $9,047 million of current portion of long-term borrowings, respectively. See Note 16.
|
(h)
|
Included $13,458 million and $13,614 million of deposits in non-U.S. banks at March 31, 2014 and December 31, 2013, respectively, and $19,305 million and $18,275 million of certificates of deposits with maturities greater than one year at March 31, 2014 and December 31, 2013, respectively.
|
Effect on Operations of Pension Plans
|
|||||||||||
Principal Pension Plans
|
|||||||||||
Three months ended March 31
|
|||||||||||
(In millions)
|
2014
|
2013
|
|||||||||
Service cost for benefits earned
|
$
|
318
|
$
|
401
|
|||||||
Prior service cost amortization
|
54
|
61
|
|||||||||
Expected return on plan assets
|
(801)
|
(875)
|
|||||||||
Interest cost on benefit obligation
|
686
|
614
|
|||||||||
Net actuarial loss amortization
|
641
|
912
|
|||||||||
Pension plans cost
|
$
|
898
|
$
|
1,113
|
|||||||
Other Pension Plans
|
|||||||||||
Three months ended March 31
|
|||||||||||
(In millions)
|
2014
|
2013
|
|||||||||
Service cost for benefits earned
|
$
|
114
|
$
|
102
|
|||||||
Prior service cost amortization
|
1
|
2
|
|||||||||
Expected return on plan assets
|
(197)
|
(165)
|
|||||||||
Interest cost on benefit obligation
|
146
|
130
|
|||||||||
Net actuarial loss amortization
|
49
|
86
|
|||||||||
Pension plans cost
|
$
|
113
|
$
|
155
|
|||||||
Principal Retiree Health
|
|||||||||||
and Life Insurance Plans
|
|||||||||||
Three months ended March 31
|
|||||||||||
(In millions)
|
2014
|
2013
|
|||||||||
Service cost for benefits earned
|
$
|
44
|
$
|
73
|
|||||||
Prior service cost amortization
|
98
|
98
|
|||||||||
Expected return on plan assets
|
(12)
|
(15)
|
|||||||||
Interest cost on benefit obligation
|
110
|
107
|
|||||||||
Net actuarial loss (gain) amortization
|
(43)
|
4
|
|||||||||
Retiree benefit plans cost
|
$
|
197
|
$
|
267
|
|||||||
Unrecognized Tax Benefits
|
|||||||||||
(In millions)
|
March 31, 2014
|
December 31, 2013
|
|||||||||
Unrecognized tax benefits
|
$
|
5,911
|
$
|
5,816
|
|||||||
Portion that, if recognized, would reduce tax
|
|||||||||||
expense and effective tax rate(a)
|
4,223
|
4,307
|
|||||||||
Accrued interest on unrecognized tax benefits
|
970
|
975
|
|||||||||
Accrued penalties on unrecognized tax benefits
|
169
|
164
|
|||||||||
Reasonably possible reduction to the balance of
|
|||||||||||
unrecognized tax benefits in succeeding 12 months
|
0-1,150
|
0-900
|
|||||||||
Portion that, if recognized, would reduce tax
|
|||||||||||
expense and effective tax rate(a)
|
0-400
|
0-350
|
|||||||||
(a)
|
Some portion of such reduction may be reported as discontinued operations.
|
Accumulated Other Comprehensive Income (Loss)
|
|||||||||||
Three months ended March 31
|
|||||||||||
(In millions)
|
2014
|
2013
|
|||||||||
Investment securities
|
|||||||||||
Beginning balance
|
$
|
307
|
$
|
677
|
|||||||
Other comprehensive income (loss) (OCI) before reclassifications –
|
|||||||||||
net of deferred taxes of $246 and $(38)
|
447
|
(63)
|
|||||||||
Reclassifications from OCI – net of deferred taxes of $7 and $97
|
10
|
131
|
|||||||||
Other comprehensive income (loss)(a)
|
457
|
68
|
|||||||||
Less: OCI attributable to noncontrolling interests
|
-
|
1
|
|||||||||
Ending balance
|
$
|
764
|
$
|
744
|
|||||||
Currency translation adjustments (CTA)
|
|||||||||||
Beginning balance
|
$
|
126
|
$
|
412
|
|||||||
OCI before reclassifications – net of deferred taxes of $71 and $(204)
|
47
|
(471)
|
|||||||||
Reclassifications from OCI – net of deferred taxes of $124 and $(34)
|
2
|
12
|
|||||||||
Other comprehensive income (loss)(a)
|
49
|
(459)
|
|||||||||
Less: OCI attributable to noncontrolling interests
|
(2)
|
(4)
|
|||||||||
Ending balance
|
$
|
177
|
$
|
(43)
|
|||||||
Cash flow hedges
|
|||||||||||
Beginning balance
|
$
|
(257)
|
$
|
(722)
|
|||||||
OCI before reclassifications – net of deferred taxes of $71 and $72
|
99
|
(76)
|
|||||||||
Reclassifications from OCI – net of deferred taxes of $(6) and $(47)
|
(31)
|
178
|
|||||||||
Other comprehensive income (loss)(a)
|
68
|
102
|
|||||||||
Less: OCI attributable to noncontrolling interests
|
-
|
-
|
|||||||||
Ending balance
|
$
|
(189)
|
$
|
(620)
|
|||||||
Benefit plans
|
|||||||||||
Beginning balance
|
$
|
(9,296)
|
$
|
(20,597)
|
|||||||
Net actuarial gain (loss) – net of deferred taxes of $42 and $53
|
172
|
83
|
|||||||||
Prior service cost amortization – net of deferred taxes of $64 and $67
|
93
|
98
|
|||||||||
Net actuarial loss amortization – net of deferred taxes
|
|||||||||||
of $213 and $339
|
430
|
672
|
|||||||||
Other comprehensive income (loss)(a)
|
695
|
853
|
|||||||||
Less: OCI attributable to noncontrolling interests
|
-
|
1
|
|||||||||
Ending balance
|
$
|
(8,601)
|
$
|
(19,745)
|
|||||||
Accumulated other comprehensive income (loss) at March 31
|
$
|
(7,849)
|
$
|
(19,664)
|
|||||||
(a)
|
Total other comprehensive income (loss) was $1,269 million and $564 million for the three months ended March 31, 2014 and 2013, respectively
.
|
Reclassification out of AOCI
|
|||||||||||||
Three months ended
March 31
|
|||||||||||||
(In millions)
|
2014
|
2013
|
Statement of Earnings Caption
|
||||||||||
Available-for-sale securities
|
|||||||||||||
Realized gains (losses) on
|
|||||||||||||
sale/impairment of securities
|
$
|
(17)
|
$
|
(228)
|
Other income
|
||||||||
7
|
97
|
Benefit (provision) for income taxes
|
|||||||||||
$
|
(10)
|
$
|
(131)
|
Net of tax
|
|||||||||
Currency translation adjustments
|
|||||||||||||
Gains (losses) on dispositions
|
$
|
(126)
|
$
|
22
|
Costs and expenses
|
||||||||
124
|
(34)
|
Benefit (provision) for income taxes
|
|||||||||||
$
|
(2)
|
$
|
(12)
|
Net of tax
|
|||||||||
Cash flow hedges
|
|||||||||||||
Gains (losses) on interest rate
derivatives
|
$
|
(69)
|
$
|
(102)
|
Interest and other financial charges
|
||||||||
Foreign exchange contracts
|
128
|
(51)
|
(a)
|
||||||||||
Other
|
(22)
|
22
|
(b)
|
||||||||||
37
|
(131)
|
Total before tax
|
|||||||||||
(6)
|
(47)
|
Benefit (provision) for income taxes
|
|||||||||||
$
|
31
|
$
|
(178)
|
Net of tax
|
|||||||||
Benefit plan items
|
|||||||||||||
Amortization of prior service costs
|
$
|
(157)
|
$
|
(165)
|
(c)
|
||||||||
Amortization of actuarial gains (losses)
|
(643)
|
(1,011)
|
(c)
|
||||||||||
(800)
|
(1,176)
|
Total before tax
|
|||||||||||
277
|
406
|
Benefit (provision) for income taxes
|
|||||||||||
$
|
(523)
|
$
|
(770)
|
Net of tax
|
|||||||||
Total reclassification adjustments
|
$
|
(504)
|
$
|
(1,091)
|
Net of tax
|
||||||||
(a)
|
Included $134 million and $(33) million in GECC revenues from services and $(6) million and $(18) million in interest and other financial charges for the three months ended March 31, 2014 and 2013, respectively.
|
(b)
|
Primarily recorded in costs and expenses.
|
(c)
|
Amortization of prior service costs and actuarial gains and losses out of AOCI are included in the computation of net periodic pension costs. See Note 9 for further information.
|
Noncontrolling Interests
|
|||||||||||
Three months ended March 31
|
|||||||||||
(In millions)
|
2014
|
2013
|
|||||||||
Beginning balance
|
$
|
6,217
|
$
|
5,444
|
|||||||
Net earnings (loss)
|
(33)
|
(16)
|
|||||||||
Dividends
|
(10)
|
(18)
|
|||||||||
Dispositions
|
-
|
(104)
|
|||||||||
Other (including AOCI)
|
9
|
30
|
|||||||||
Ending balance
|
$
|
6,183
|
$
|
5,336
|
|||||||
Three months ended March 31
|
|||||||||||
(In millions)
|
2014
|
2013
|
|||||||||
Interest on loans
|
$
|
4,256
|
$
|
4,490
|
|||||||
Equipment leased to others
|
2,661
|
2,529
|
|||||||||
Fees
|
1,114
|
1,130
|
|||||||||
Investment income(a)
|
556
|
414
|
|||||||||
Financing leases
|
389
|
436
|
|||||||||
Associated companies
|
373
|
173
|
|||||||||
Premiums earned by insurance activities
|
352
|
395
|
|||||||||
Real estate investments(b)
|
343
|
1,300
|
|||||||||
Other items
|
444
|
575
|
|||||||||
10,488
|
11,442
|
||||||||||
Eliminations
|
(356)
|
(301)
|
|||||||||
Total
|
$
|
10,132
|
$
|
11,141
|
|||||||
(a)
|
Included net other-than-temporary impairments on investment securities of $34 million and $278 million in the three months ended March 31, 2014 and 2013, respectively.
|
(b)
|
During the three months ended March 31, 2013, we sold real estate comprising certain floors located at 30 Rockefeller Center, New York for a pre-tax gain of $902 million.
|
Three months ended March 31
|
|||||||||||
2014
|
2013
|
||||||||||
(In millions; per-share amounts in dollars)
|
Diluted
|
Basic
|
Diluted
|
Basic
|
|||||||
Amounts attributable to the Company:
|
|||||||||||
Consolidated
|
|||||||||||
Earnings from continuing operations attributable to
|
|||||||||||
common shareowners for per-share calculation(a)
|
$
|
2,983
|
$
|
2,983
|
$
|
3,642
|
$
|
3,642
|
|||
Earnings (loss) from discontinued operations
|
|||||||||||
for per-share calculation(a)
|
12
|
12
|
(120)
|
(120)
|
|||||||
Net earnings attributable to GE common
|
|||||||||||
shareowners for per-share calculation(a)
|
$
|
2,995
|
$
|
2,995
|
$
|
3,522
|
$
|
3,522
|
|||
Average equivalent shares
|
|||||||||||
Shares of GE common stock outstanding
|
10,045
|
10,045
|
10,374
|
10,374
|
|||||||
Employee compensation-related shares (including
|
|||||||||||
stock options) and warrants
|
78
|
-
|
59
|
-
|
|||||||
Total average equivalent shares
|
10,123
|
10,045
|
10,433
|
10,374
|
|||||||
Per-share amounts
|
|||||||||||
Earnings from continuing operations
|
$
|
0.29
|
$
|
0.30
|
$
|
0.35
|
$
|
0.35
|
|||
Earnings (loss) from discontinued operations
|
–
|
–
|
(0.01)
|
(0.01)
|
|||||||
Net earnings
|
0.30
|
0.30
|
0.34
|
0.34
|
(a)
|
Included an insignificant amount of dividend equivalents in each of the periods presented.
|
(a)
|
There were no securities transferred between Level 1 and Level 2 in the three months ended March 31, 2014.
|
(b)
|
The netting of derivative receivables and payables (including the effects of any collateral posted or received) is permitted when a legally enforceable master netting agreement exists.
|
(c)
|
Includes investments in our CLL business in asset-backed securities collateralized by senior secured loans of high-quality, middle-market companies in a variety of industries.
|
(d)
|
The fair value of derivatives includes an adjustment for non-performance risk. The cumulative adjustment was a gain (loss) of $30 million and $(7) million at March 31, 2014 and December 31, 2013, respectively. See Note 15 for additional information on the composition of our derivative portfolio.
|
(e)
|
Includes private equity investments and loans designated under the fair value option.
|
(f)
|
Primarily represented the liability associated with certain of our deferred incentive compensation plans.
|
Changes in Level 3 Instruments for the Three Months Ended
|
||||||||||||||||||||||||||||||
Net
|
||||||||||||||||||||||||||||||
change in
|
||||||||||||||||||||||||||||||
Net
|
Net
|
unrealized
|
||||||||||||||||||||||||||||
realized/
|
realized/
|
gains
|
||||||||||||||||||||||||||||
unrealized
|
unrealized
|
(losses)
|
||||||||||||||||||||||||||||
gains
|
gains
|
relating to
|
||||||||||||||||||||||||||||
Balance
|
(losses)
|
(losses)
|
Transfers
|
Transfers
|
Balance
|
instruments
|
||||||||||||||||||||||||
at
|
included
|
included
|
into
|
out of
|
at
|
still held at
|
||||||||||||||||||||||||
(In millions)
|
January 1
|
in earnings
|
(a)
|
in AOCI
|
Purchases
|
Sales
|
Settlements
|
Level 3
(b)
|
Level 3
(b)
|
March 31
|
March 31
|
(c)
|
||||||||||||||||||
2014
|
||||||||||||||||||||||||||||||
Investment securities
|
||||||||||||||||||||||||||||||
Debt
|
||||||||||||||||||||||||||||||
U.S. corporate
|
$
|
2,953
|
$
|
8
|
$
|
60
|
$
|
153
|
$
|
(2)
|
$
|
(112)
|
$
|
97
|
$
|
(53)
|
$
|
3,104
|
$
|
-
|
||||||||||
State and municipal
|
96
|
-
|
27
|
9
|
-
|
(7)
|
435
|
-
|
560
|
-
|
||||||||||||||||||||
RMBS
|
86
|
-
|
(1)
|
-
|
-
|
(4)
|
-
|
-
|
81
|
-
|
||||||||||||||||||||
CMBS
|
10
|
-
|
-
|
-
|
-
|
(1)
|
2
|
-
|
11
|
-
|
||||||||||||||||||||
ABS
|
6,898
|
1
|
(27)
|
405
|
-
|
(369)
|
-
|
-
|
6,908
|
-
|
||||||||||||||||||||
Corporate – non-U.S.
|
1,064
|
(21)
|
47
|
219
|
(2)
|
(235)
|
-
|
-
|
1,072
|
-
|
||||||||||||||||||||
Government – non-U.S.
|
31
|
-
|
-
|
-
|
-
|
-
|
-
|
(30)
|
1
|
-
|
||||||||||||||||||||
U.S. government and
|
||||||||||||||||||||||||||||||
federal agency
|
225
|
-
|
9
|
-
|
-
|
-
|
-
|
(2)
|
232
|
-
|
||||||||||||||||||||
Retained interests
|
72
|
2
|
3
|
1
|
-
|
(3)
|
-
|
-
|
75
|
-
|
||||||||||||||||||||
Equity
|
||||||||||||||||||||||||||||||
Available-for-sale
|
11
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
11
|
-
|
||||||||||||||||||||
Derivatives(d)(e)
|
164
|
(7)
|
-
|
-
|
-
|
2
|
(1)
|
-
|
158
|
-
|
||||||||||||||||||||
Other
|
494
|
3
|
-
|
83
|
(13)
|
-
|
-
|
(279)
|
288
|
(9)
|
||||||||||||||||||||
Total
|
$
|
12,104
|
$
|
(14)
|
$
|
118
|
$
|
870
|
$
|
(17)
|
$
|
(729)
|
$
|
533
|
$
|
(364)
|
$
|
12,501
|
$
|
(9)
|
||||||||||
2013
|
||||||||||||||||||||||||||||||
Investment securities
|
||||||||||||||||||||||||||||||
Debt
|
||||||||||||||||||||||||||||||
U.S. corporate
|
$
|
3,591
|
$
|
(271)
|
$
|
219
|
$
|
63
|
$
|
(6)
|
$
|
(45)
|
$
|
93
|
$
|
(73)
|
$
|
3,571
|
$
|
-
|
||||||||||
State and municipal
|
77
|
-
|
-
|
4
|
-
|
(1)
|
10
|
-
|
90
|
-
|
||||||||||||||||||||
RMBS
|
100
|
-
|
(3)
|
-
|
-
|
(1)
|
-
|
-
|
96
|
-
|
||||||||||||||||||||
CMBS
|
6
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
6
|
-
|
||||||||||||||||||||
ABS
|
5,023
|
1
|
(2)
|
144
|
-
|
(262)
|
12
|
-
|
4,916
|
-
|
||||||||||||||||||||
Corporate – non-U.S.
|
1,218
|
8
|
19
|
825
|
(3)
|
(733)
|
15
|
-
|
1,349
|
-
|
||||||||||||||||||||
Government – non-U.S.
|
42
|
-
|
(1)
|
-
|
-
|
-
|
-
|
-
|
41
|
-
|
||||||||||||||||||||
U.S. government and
|
||||||||||||||||||||||||||||||
federal agency
|
277
|
-
|
(13)
|
-
|
-
|
-
|
-
|
-
|
264
|
-
|
||||||||||||||||||||
Retained interests
|
83
|
3
|
10
|
-
|
-
|
(5)
|
-
|
-
|
91
|
-
|
||||||||||||||||||||
Equity
|
||||||||||||||||||||||||||||||
Available-for-sale
|
13
|
-
|
-
|
-
|
-
|
-
|
-
|
(2)
|
11
|
-
|
||||||||||||||||||||
Derivatives(d)(e)
|
416
|
(19)
|
-
|
(1)
|
-
|
(53)
|
-
|
-
|
343
|
12
|
||||||||||||||||||||
Other
|
799
|
(22)
|
-
|
57
|
(55)
|
-
|
-
|
-
|
779
|
(21)
|
||||||||||||||||||||
Total
|
$
|
11,645
|
$
|
(300)
|
$
|
229
|
$
|
1,092
|
$
|
(64)
|
$
|
(1,100)
|
$
|
130
|
$
|
(75)
|
$
|
11,557
|
$
|
(9)
|
||||||||||
(a)
|
Earnings effects are primarily included in the GECC revenues from services and Interest and other financial charges captions in the Condensed Statement of Earnings.
|
(b)
|
Transfers in and out of Level 3 are considered to occur at the beginning of the period. Transfers out of Level 3 were primarily a result of increased use of quotes from independent pricing vendors based on recent trading activity.
|
(c)
|
Represents the amount of unrealized gains or losses for the period included in earnings.
|
(d)
|
Represents derivative assets net of derivative liabilities and included cash accruals of $10 million and $4 million not reflected in the fair value hierarchy table for the three months ended March 31, 2014 and 2013, respectively
.
|
(e)
|
Gains (losses) included in “net realized/unrealized gains (losses) included in earnings” were offset by the earnings effects from the underlying items that were economically hedged. See Note 15
.
|
Remeasured during
|
Remeasured during
|
||||||||||
the three months ended
|
the year ended
|
||||||||||
March 31, 2014
|
December 31, 2013
|
||||||||||
(In millions)
|
Level 2
|
Level 3
|
Level 2
|
Level 3
|
|||||||
Financing receivables and loans held for sale
|
$
|
87
|
$
|
1,596
|
$
|
210
|
$
|
2,986
|
|||
Cost and equity method investments
|
-
|
354
|
-
|
690
|
|||||||
Long-lived assets, including real estate
|
326
|
192
|
2,050
|
1,088
|
|||||||
Total
|
$
|
413
|
$
|
2,142
|
$
|
2,260
|
$
|
4,764
|
|||
Three months ended March 31
|
|||||||||||
(In millions)
|
2014
|
2013
|
|||||||||
Financing receivables and loans held for sale
|
$
|
(113)
|
$
|
(128)
|
|||||||
Cost and equity method investments
|
(208)
|
(81)
|
|||||||||
Long-lived assets, including real estate
|
(75)
|
(390)
|
|||||||||
Total
|
$
|
(396)
|
$
|
(599)
|
|||||||
Range
|
|||||||||
(Dollars in millions)
|
Fair value
|
Valuation technique
|
Unobservable inputs
|
(weighted average)
|
|||||
|
|||||||||
March 31, 2014
|
|||||||||
Recurring fair value measurements
|
|||||||||
Investment securities – Debt
|
|||||||||
U.S. corporate
|
$
|
947
|
Income approach
|
Discount rate(a)
|
1.5%-8.9% (5.0%)
|
||||
State and Municipal
|
469
|
Income approach
|
Discount rate(a)
|
1.8%-6.0% (3.3%)
|
|||||
Asset-backed
|
6,868
|
Income approach
|
Discount rate(a)
|
1.3%-9.5% (3.8%)
|
|||||
Corporate – non-U.S.
|
776
|
Income approach
|
Discount rate(a)
|
1.4%-46.0% (15.3%)
|
|||||
Other financial assets
|
278
|
Income approach,
Market comparables
|
Revenue multiple
|
1.7X-1.7X (1.7X)
|
|||||
EBITDA multiple
|
5.4X-8.9X (6.9X)
|
||||||||
Discount rate(a)
|
3.9%-5.6% (4.8%)
|
||||||||
Capitalization rate(b)
|
7.3%-8.8% (7.6%)
|
||||||||
Non-recurring fair value measurements
|
|||||||||
Financing receivables and
loans held for sale
|
$
|
995
|
Income approach,
Business enterprise
value
|
Capitalization rate(b)
|
2.7%-11.3% (6.5%)
|
||||
EBITDA multiple
|
4.3X-6.5X (5.9X)
|
||||||||
WACC(c)
|
19.0%-19.0% (19.0%)
|
||||||||
Cost and equity method investments
|
137
|
Income approach,
Business enterprise value,
Market comparables
|
Discount rate(a)
|
8.0%-10.0% (8.5%)
|
|||||
EBITDA multiple
|
6.0X-9.0X (9.0X)
|
||||||||
Revenue multiple
|
2.9X-2.9X (2.9X)
|
||||||||
Long-lived assets, including real estate
|
5
|
Income approach
|
Capitalization rate(b)
|
9.4%-15.3% (12.0%)
|
|||||
Discount rate(a)
|
4.0%-19.0% (8.3%)
|
||||||||
December 31, 2013
|
|||||||||
Recurring fair value measurements
|
|||||||||
Investment securities – Debt
|
|||||||||
U.S. corporate
|
$
|
898
|
Income approach
|
Discount rate(a)
|
1.5%-13.3% (6.5%)
|
||||
Asset-backed
|
6,854
|
Income approach
|
Discount rate(a)
|
1.2%-10.5% (3.7%)
|
|||||
Corporate – non-U.S.
|
819
|
Income approach
|
Discount rate(a)
|
1.4%-46.0% (15.1%)
|
|||||
Other financial assets
|
381
|
Income approach,
Market comparables
|
WACC(c)
|
9.3%-9.3% (9.3%)
|
|||||
EBITDA multiple
|
5.4X-12.5X (9.5X)
|
||||||||
Discount rate(a)
|
5.2%-8.8% (5.3%)
|
||||||||
Capitalization rate(b)
|
6.3%-7.5% (7.2%)
|
||||||||
Non-recurring fair value measurements
|
|||||||||
Financing receivables and
loans held for sale
|
$
|
1,937
|
Income approach,
|
Capitalization rate(b)
|
5.5%-16.7% (8.0%)
|
||||
Business enterprise
value
|
EBITDA multiple
|
4.3X-5.5X (4.8X)
|
|||||||
Discount rate(a)
|
6.6%-6.6% (6.6%)
|
||||||||
Cost and equity method investments
|
102
|
Income approach,
Market comparables
|
Discount rate(a)
|
5.7%-5.9% (5.8%)
|
|||||
Capitalization rate(b)
|
8.5%-10.6% (10.0%)
|
||||||||
WACC(c)
|
9.3%-9.6% (9.4%)
|
||||||||
EBITDA multiple
|
7.1X-14.5X (11.3X)
|
||||||||
Revenue multiple
|
2.2X-12.6X (9.4X)
|
||||||||
Long-lived assets, including real estate
|
694
|
Income approach
|
Capitalization rate(b)
|
5.4%-14.5% (7.8%)
|
|||||
Discount rate(a)
|
4.0%-23.0% (9.0%)
|
||||||||
(a)
|
Discount rates are determined based on inputs that market participants would use when pricing investments, including credit and liquidity risk. An increase in the discount rate would result in a decrease in the fair value.
|
(b)
|
Represents the rate of return on net operating income that is considered acceptable for an investor and is used to determine a property’s capitalized value. An increase in the capitalization rate would result in a decrease in the fair value.
|
(c)
|
Weighted average cost of capital (WACC).
|
March 31, 2014
|
December 31, 2013
|
||||||||||||||||
Assets (liabilities)
|
Assets (liabilities)
|
||||||||||||||||
Carrying
|
Carrying
|
||||||||||||||||
Notional
|
amount
|
Estimated
|
Notional
|
amount
|
Estimated
|
||||||||||||
(In millions)
|
amount
|
(net)
|
fair value
|
amount
|
(net)
|
fair value
|
|||||||||||
GE
|
|||||||||||||||||
Assets
|
|||||||||||||||||
Investments and notes
|
|||||||||||||||||
receivable
|
$
|
(a)
|
$
|
486
|
$
|
533
|
$
|
(a)
|
$
|
488
|
$
|
512
|
|||||
Liabilities
|
|||||||||||||||||
Borrowings(b)
|
(a)
|
(16,016)
|
(16,824)
|
(a)
|
(13,356)
|
(13,707)
|
|||||||||||
GECC
|
|||||||||||||||||
Assets
|
|||||||||||||||||
Loans
|
(a)
|
221,187
|
225,454
|
(a)
|
226,293
|
230,792
|
|||||||||||
Other commercial mortgages
|
(a)
|
2,261
|
2,269
|
(a)
|
2,270
|
2,281
|
|||||||||||
Loans held for sale
|
(a)
|
1,078
|
1,078
|
(a)
|
512
|
512
|
|||||||||||
Other financial instruments(c)
|
(a)
|
1,541
|
2,201
|
(a)
|
1,622
|
2,203
|
|||||||||||
Liabilities
|
|||||||||||||||||
Borrowings and bank
|
|||||||||||||||||
deposits(b)(d)
|
(a)
|
(365,223)
|
(381,050)
|
(a)
|
(371,062)
|
(386,823)
|
|||||||||||
Investment contract benefits
|
(a)
|
(3,107)
|
(3,666)
|
(a)
|
(3,144)
|
(3,644)
|
|||||||||||
Guaranteed investment contracts
|
(a)
|
(1,441)
|
(1,429)
|
(a)
|
(1,471)
|
(1,459)
|
|||||||||||
Insurance – credit life(e)
|
2,163
|
(110)
|
(96)
|
2,149
|
(108)
|
(94)
|
|||||||||||
(a)
|
These financial instruments do not have notional amounts.
|
(b)
|
See Note 8.
|
(c)
|
Principally comprises cost method investments.
|
(d)
|
Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at March 31, 2014 and December 31, 2013 would have been reduced by $3,506 million and $2,284 million, respectively.
|
(e)
|
Net of reinsurance of $1,250 million at both March 31, 2014 and December 31, 2013.
|
Notional Amounts of Loan Commitments
|
|||||||||||
(In millions)
|
March 31, 2014
|
December 31, 2013
|
|||||||||
Ordinary course of business lending commitments(a)
|
$
|
5,102
|
$
|
4,756
|
|||||||
Unused revolving credit lines(b)
|
|||||||||||
Commercial(c)
|
15,497
|
16,570
|
|||||||||
Consumer – principally credit cards
|
296,296
|
290,662
|
|||||||||
(a)
|
Excluded investment commitments of $1,383 million and $1,395 million at March 31, 2014 and December 31, 2013, respectively.
|
(b)
|
Excluded inventory financing arrangements, which may be withdrawn at our option, of $12,650 million and $13,502 million at March 31, 2014 and December 31, 2013, respectively.
|
(c)
|
Included commitments of $11,952 million and $11,629 million at March 31, 2014 and December 31, 2013, respectively, associated with secured financing arrangements that could have increased to a maximum of $15,472 million and $14,590 million at March 31, 2014 and December 31, 2013, respectively, based on asset volume under the arrangement.
|
Fair Value of Derivatives
|
|||||||||||
March 31, 2014
|
December 31, 2013
|
||||||||||
(In millions)
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
|||||||
Derivatives accounted for as hedges
|
|||||||||||
Interest rate contracts
|
$
|
4,187
|
$
|
1,350
|
$
|
3,837
|
$
|
1,989
|
|||
Currency exchange contracts
|
1,330
|
1,183
|
1,830
|
984
|
|||||||
Other contracts
|
1
|
2
|
1
|
-
|
|||||||
5,518
|
2,535
|
5,668
|
2,973
|
||||||||
Derivatives not accounted for as hedges
|
|||||||||||
Interest rate contracts
|
289
|
145
|
270
|
169
|
|||||||
Currency exchange contracts
|
1,814
|
1,979
|
2,257
|
2,245
|
|||||||
Other contracts
|
225
|
48
|
284
|
42
|
|||||||
2,328
|
2,172
|
2,811
|
2,456
|
||||||||
Gross derivatives recognized in statement of
|
|||||||||||
financial position
|
|||||||||||
Gross derivatives
|
7,846
|
4,707
|
8,479
|
5,429
|
|||||||
Gross accrued interest
|
1,183
|
41
|
1,227
|
241
|
|||||||
9,029
|
4,748
|
9,706
|
5,670
|
||||||||
Amounts offset in statement of financial position
|
|||||||||||
Netting adjustments(a)
|
(3,556)
|
(3,586)
|
(4,120)
|
(4,113)
|
|||||||
Cash collateral(b)
|
(2,744)
|
(309)
|
(2,619)
|
(242)
|
|||||||
(6,300)
|
(3,895)
|
(6,739)
|
(4,355)
|
||||||||
Net derivatives recognized in statement of
|
|||||||||||
financial position
|
|||||||||||
Net derivatives
|
2,729
|
853
|
2,967
|
1,315
|
|||||||
Amounts not offset in statement of
|
|||||||||||
financial position
|
|||||||||||
Securities held as collateral(c)
|
(1,655)
|
-
|
(1,962)
|
-
|
|||||||
Net amount
|
$
|
1,074
|
$
|
853
|
$
|
1,005
|
$
|
1,315
|
|||
(a)
|
The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts include fair value adjustments related to our own and counterparty non-performance risk. At March 31, 2014 and December 31, 2013, the cumulative adjustment for non-performance risk was a gain (loss) of $30 million and $(7) million, respectively.
|
(b)
|
Excludes excess cash collateral received and posted of $177 million and $56 million at March 31, 2014, respectively, and $160 million and $37 million at December 31, 2013, respectively.
|
(c)
|
Excludes excess securities collateral received of $75 million and $363 million at March 31, 2014 and December 31, 2013, respectively.
|
Earnings Effect of Fair Value Hedging Relationships
|
|||||||||||
Three months ended March 31
|
|||||||||||
2014
|
2013
|
||||||||||
Gain (loss)
|
Gain (loss)
|
Gain (loss)
|
Gain (loss)
|
||||||||
on hedging
|
on hedged
|
on hedging
|
on hedged
|
||||||||
(In millions)
|
derivatives
|
items
|
derivatives
|
items
|
|||||||
Interest rate contracts
|
$
|
990
|
$
|
(1,005)
|
$
|
(914)
|
$
|
881
|
|||
Currency exchange contracts
|
2
|
(3)
|
(9)
|
8
|
|||||||
Gain (loss) reclassified
|
|||||||||||
Gain (loss) recognized in AOCI
|
from AOCI into earnings
|
||||||||||
for the three months ended March 31
|
for the three months ended March 31
|
||||||||||
(In millions)
|
2014
|
2013
|
2014
|
2013
|
|||||||
Interest rate contracts
|
$
|
3
|
$
|
(11)
|
$
|
(69)
|
$
|
(102)
|
|||
Currency exchange contracts
|
156
|
4
|
108
|
(28)
|
|||||||
Commodity contracts
|
(2)
|
(1)
|
(2)
|
(1)
|
|||||||
Total(a)
|
$
|
157
|
$
|
(8)
|
$
|
37
|
$
|
(131)
|
|||
(a)
|
Gain (loss) is recorded in GECC revenues from services, interest and other financial charges, and other costs and expenses when reclassified to earnings.
|
(a)
|
Gain (loss) is recorded in GECC revenues from services when reclassified out of AOCI.
|
·
|
Trinity comprises two consolidated entities that hold investment securities, the majority of which are investment-grade, and were funded by the issuance of GICs. The GICs include conditions under which certain holders could require immediate repayment of their investment should the long-term credit ratings of GECC fall below AA-/Aa3 or the short-term credit ratings fall below A-1+/P-1. The outstanding GICs are subject to their scheduled maturities and individual terms, which may include provisions permitting redemption upon a downgrade of one or more of GECC’s ratings, among other things, and are reported in investment contracts, insurance liabilities and insurance annuity benefits.
|
·
|
Consolidated Securitization Entities (CSEs) were created to facilitate securitization of financial assets and other forms of asset-backed financing that serve as an alternative funding source by providing access to variable funding notes and term markets. The securitization transactions executed with these entities are similar to those used by many financial institutions and substantially all are non-recourse. We provide servicing for substantially all of the assets in these entities.
|
·
|
Other remaining assets and liabilities of consolidated VIEs relate primarily to three categories of entities: (1) joint ventures that lease equipment with $1,562 million of assets and $713 million of liabilities; (2) other entities that are involved in power generating and leasing activities with $733 million of assets and no liabilities; and (3) insurance entities that, among other lines of business, provide property and casualty and workers’ compensation coverage for GE with $1,195 million of assets and $525 million of liabilities.
|
Consolidated Securitization Entities
|
|||||||||||||||||
Trade
|
|||||||||||||||||
(In millions)
|
Trinity(a)
|
Credit cards
|
(b)
|
Equipment
|
(b)
|
receivables
|
Other
|
Total
|
|||||||||
March 31, 2014
|
|||||||||||||||||
Assets(c)
|
|||||||||||||||||
Financing receivables, net
|
$
|
-
|
$
|
23,888
|
$
|
13,029
|
$
|
2,628
|
$
|
2,067
|
$
|
41,612
|
|||||
Investment securities
|
2,764
|
-
|
-
|
-
|
1,034
|
3,798
|
|||||||||||
Other assets
|
22
|
122
|
515
|
1
|
2,706
|
3,366
|
|||||||||||
Total
|
$
|
2,786
|
$
|
24,010
|
$
|
13,544
|
$
|
2,629
|
$
|
5,807
|
$
|
48,776
|
|||||
Liabilities(c)
|
|||||||||||||||||
Borrowings
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
583
|
$
|
583
|
|||||
Non-recourse borrowings
|
-
|
14,642
|
10,316
|
2,168
|
49
|
27,175
|
|||||||||||
Other liabilities
|
1,454
|
265
|
285
|
28
|
1,458
|
3,490
|
|||||||||||
Total
|
$
|
1,454
|
$
|
14,907
|
$
|
10,601
|
$
|
2,196
|
$
|
2,090
|
$
|
31,248
|
|||||
December 31, 2013
|
|||||||||||||||||
Assets(c)
|
|||||||||||||||||
Financing receivables, net
|
$
|
-
|
$
|
24,766
|
$
|
12,928
|
$
|
2,509
|
$
|
2,044
|
$
|
42,247
|
|||||
Investment securities
|
2,786
|
-
|
-
|
-
|
1,044
|
3,830
|
|||||||||||
Other assets
|
213
|
20
|
557
|
-
|
2,430
|
3,220
|
|||||||||||
Total
|
$
|
2,999
|
$
|
24,786
|
$
|
13,485
|
$
|
2,509
|
$
|
5,518
|
$
|
49,297
|
|||||
Liabilities(c)
|
|||||||||||||||||
Borrowings
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
598
|
$
|
598
|
|||||
Non-recourse borrowings
|
-
|
15,363
|
10,982
|
2,180
|
49
|
28,574
|
|||||||||||
Other liabilities
|
1,482
|
228
|
248
|
25
|
1,351
|
3,334
|
|||||||||||
Total
|
$
|
1,482
|
$
|
15,591
|
$
|
11,230
|
$
|
2,205
|
$
|
1,998
|
$
|
32,506
|
|||||
(a)
|
Excludes intercompany advances from GECC to Trinity, which are eliminated in consolidation of $1,611 million and $1,837 million at March 31, 2014 and December 31, 2013, respectively.
|
(b)
|
We provide servicing to the CSEs and are contractually permitted to commingle cash collected from customers on financing receivables sold to CSE investors with our own cash prior to payment to a CSE, provided our short-term credit rating does not fall below A-1/P-1. These CSEs also owe us amounts for purchased financial assets and scheduled interest and principal payments. At March 31, 2014 and December 31, 2013, the amounts of commingled cash owed to the CSEs were $3,106 million and $6,314 million, respectively, and the amounts owed to us by CSEs were $3,115 million and $5,540 million, respectively.
|
(c)
|
Asset amounts exclude intercompany receivables for cash collected on behalf of the entities by GE as servicer, which are eliminated in consolidation. Such receivables provide the cash to repay the entities’ liabilities. If these intercompany receivables were included in the table above, assets would be higher. In addition, other assets, borrowings and other liabilities exclude intercompany balances that are eliminated in consolidation.
|
(In millions)
|
March 31, 2014
|
December 31, 2013
|
|||||||||
Other assets and investment securities
|
$
|
9,161
|
$
|
9,129
|
|||||||
Financing receivables – net
|
3,084
|
3,346
|
|||||||||
Total investments
|
12,245
|
12,475
|
|||||||||
Contractual obligations to fund investments or guarantees
|
2,541
|
2,741
|
|||||||||
Revolving lines of credit
|
36
|
31
|
|||||||||
Total
|
$
|
14,822
|
$
|
15,247
|
|||||||
Three months ended March 31
|
|||||||||||
(In millions)
|
2014
|
2013
|
|||||||||
Cash from (used for) operating activities-continuing operations
|
|||||||||||
Combined
|
$
|
4,908
|
$
|
3,354
|
|||||||
GE customer receivables sold to GECC
|
731
|
976
|
|||||||||
GECC dividends to GE
|
(500)
|
-
|
|||||||||
Other reclassifications and eliminations
|
(175)
|
381
|
|||||||||
$
|
4,964
|
$
|
4,711
|
||||||||
Cash from (used for) investing activities-continuing operations
|
|||||||||||
Combined
|
$
|
3,612
|
$
|
32,815
|
|||||||
GE customer receivables sold to GECC
|
(1,185)
|
(966)
|
|||||||||
Other reclassifications and eliminations
|
(545)
|
(447)
|
|||||||||
$
|
1,882
|
$
|
31,402
|
||||||||
Cash from (used for) financing activities-continuing operations
|
|||||||||||
Combined
|
$
|
(10,169)
|
$
|
(23,077)
|
|||||||
GE customer receivables sold to GECC
|
454
|
(10)
|
|||||||||
GECC dividends to GE
|
500
|
-
|
|||||||||
Other reclassifications and eliminations
|
720
|
146
|
|||||||||
$
|
(8,495)
|
$
|
(22,941)
|
||||||||
OVERVIEW | |||||||||
|
Three months ended March 31
|
||||||||
(Dollars in millions, except per share amounts)
|
2014
|
2013
|
V%
|
||||||
GAAP
|
|||||||||
Consolidated revenues and other income
|
$
|
34,178
|
$
|
34,943
|
(2)%
|
||||
Earnings from continuing operations attributable
|
|||||||||
to the Company
|
2,987
|
3,647
|
(18)%
|
||||||
Earnings (loss) from discontinued operations,
|
|||||||||
net of taxes, attributable to the Company
|
12
|
(120)
|
F
|
||||||
Consolidated net earnings attributable to
|
|||||||||
the Company
|
2,999
|
3,527
|
(15)%
|
||||||
EPS from continuing operations-diluted
|
0.29
|
0.35
|
(17)%
|
||||||
EPS from net earnings-diluted
|
0.30
|
0.34
|
(12)%
|
||||||
Effective tax rate
|
14.9
|
%
|
12.3
|
%
|
|
||||
Non-GAAP
|
|||||||||
Operating earnings
|
$
|
3,329
|
$
|
4,070
|
(18)%
|
||||
Operating EPS
|
0.33
|
0.39
|
(15)%
|
·
|
Industrial segment revenues increased 8% on organic growth. Industrial segment operating profit increased 12% with growth driven by Oil & Gas, Power & Water and Aviation.
|
·
|
Industrial segment margin increased 50 bps driven by higher pricing and productivity, partially offset by the effects of inflation.
|
·
|
Orders of $23.7 billion were flat and backlog increased to $245.3 billion.
|
·
|
GE Capital segment earnings were flat on GE Capital ending net investment (excluding cash and equivalents) (ENI) of $374 billion.
|
·
|
GE acquired API Healthcare (API), a healthcare workforce management software and analytics solutions provider, in February 2014 for $0.3 billion and certain Thermo Fisher Scientific Inc. life-science businesses (Thermo Fisher) in March 2014 for $1.1 billion.
|
·
|
GE completed issuances of $3.0 billion of senior unsecured debt with maturities up to 30 years.
|
·
|
Our North American Retail Finance business, under the name Synchrony Financial, filed a registration statement with the U.S. Securities and Exchange Commission for an initial public offering, as a first step in a planned, staged exit from that business.
|
·
|
On April 30, 2014, GE and Alstom announced that GE had submitted a binding offer to acquire the Thermal, Renewables and Grid businesses of Alstom for $13.5 billion, net of $3.4 billion of assumed net cash in the businesses to be acquired. The proposed transaction is subject to further reviews and approvals, including by an independent committee of the Alstom board and Alstom’s works councils, as well as regulatory approvals. The transaction is expected to close in 2015.
|
SEGMENT OPERATIONS
|
Three months ended March 31
|
||||||||||||||
(Dollars in millions)
|
2014
|
2013
|
V%
|
|||||||||||
Revenues
|
||||||||||||||
Power & Water
|
$
|
5,509
|
$
|
4,825
|
14%
|
|||||||||
Oil & Gas
|
4,308
|
3,399
|
27%
|
|||||||||||
Energy Management
|
1,672
|
1,748
|
(4%)
|
|||||||||||
Aviation
|
5,778
|
5,074
|
14%
|
|||||||||||
Healthcare
|
4,198
|
4,289
|
(2%)
|
|||||||||||
Transportation
|
1,227
|
1,422
|
(14%)
|
|||||||||||
Appliances & Lighting
|
1,857
|
1,917
|
(3%)
|
|||||||||||
Total industrial segment revenues
|
24,549
|
22,674
|
8%
|
|||||||||||
GE Capital
|
10,515
|
11,468
|
(8%)
|
|||||||||||
Total segment revenues
|
35,064
|
34,142
|
3%
|
|||||||||||
Corporate items and eliminations
|
(886)
|
801
|
U
|
|||||||||||
Consolidated revenues and other income
|
$
|
34,178
|
$
|
34,943
|
(2%)
|
|||||||||
Segment profit
|
||||||||||||||
Power & Water
|
$
|
888
|
$
|
719
|
24%
|
|||||||||
Oil & Gas
|
446
|
325
|
37%
|
|||||||||||
Energy Management
|
5
|
15
|
(67%)
|
|||||||||||
Aviation
|
1,115
|
936
|
19%
|
|||||||||||
Healthcare
|
570
|
595
|
(4%)
|
|||||||||||
Transportation
|
202
|
267
|
(24%)
|
|||||||||||
Appliances & Lighting
|
53
|
79
|
(33%)
|
|||||||||||
Total industrial segment profit
|
3,279
|
2,936
|
12%
|
|||||||||||
GE Capital
|
1,933
|
1,938
|
-%
|
|||||||||||
Total segment profit
|
5,212
|
4,874
|
7%
|
|||||||||||
Corporate items and eliminations
|
(1,542)
|
(479)
|
U
|
|||||||||||
GE interest and other financial charges
|
(365)
|
(324)
|
(13%)
|
|||||||||||
GE provision for income taxes
|
(318)
|
(424)
|
25%
|
|||||||||||
Earnings from continuing operations
|
||||||||||||||
attributable to the Company
|
2,987
|
3,647
|
(18%)
|
|||||||||||
Earnings (loss) from discontinued operations,
|
||||||||||||||
net of taxes, attributable to the Company
|
12
|
(120)
|
F
|
|||||||||||
Consolidated net earnings attributable to
|
||||||||||||||
the Company
|
$
|
2,999
|
$
|
3,527
|
(15%)
|
Three months ended March 31
|
|||||||||||||||
(Dollars in millions)
|
2014
|
2013
|
V%
|
||||||||||||
Revenues
|
|||||||||||||||
CLL
|
$
|
3,582
|
$
|
3,507
|
2%
|
||||||||||
Consumer
|
3,602
|
3,825
|
(6)%
|
||||||||||||
Real Estate
|
631
|
1,657
|
(62)%
|
||||||||||||
Energy Financial Services
|
469
|
343
|
37%
|
||||||||||||
GECAS
|
1,345
|
1,379
|
(2)%
|
||||||||||||
Total segment revenues
|
9,629
|
10,711
|
(10)%
|
||||||||||||
Corporate items and eliminations
|
886
|
757
|
17%
|
||||||||||||
Total revenues
|
$
|
10,515
|
$
|
11,468
|
(8)%
|
||||||||||
Segment profit
|
|||||||||||||||
CLL
|
$
|
564
|
$
|
398
|
42%
|
||||||||||
Consumer
|
786
|
534
|
47%
|
||||||||||||
Real Estate
|
239
|
690
|
(65)%
|
||||||||||||
Energy Financial Services
|
153
|
83
|
84%
|
||||||||||||
GECAS
|
352
|
348
|
1%
|
||||||||||||
Total segment profit
|
2,094
|
2,053
|
2%
|
||||||||||||
Corporate items and eliminations
|
(161)
|
(115)
|
(40)%
|
||||||||||||
Earnings from continuing operations
|
|||||||||||||||
attributable to GECC
|
1,933
|
1,938
|
-%
|
||||||||||||
Earnings from discontinued operations,
|
|||||||||||||||
net of taxes, attributable to GECC
|
12
|
(120)
|
F
|
||||||||||||
Net earnings attributable to GECC
|
1,945
|
1,818
|
7%
|
||||||||||||
(In millions)
|
March 31, 2014
|
December 31, 2013
|
March 31, 2013
|
|||||
Assets
|
||||||||
CLL
|
$
|
175,059
|
$
|
174,357
|
$
|
175,757
|
||
Consumer
|
131,720
|
132,236
|
136,404
|
|||||
Real Estate
|
38,237
|
38,744
|
42,760
|
|||||
Energy Financial Services
|
15,943
|
16,203
|
18,627
|
|||||
GECAS
|
45,118
|
45,876
|
48,884
|
|||||
Corporate items and eliminations
|
104,370
|
109,413
|
107,099
|
|||||
Total Assets
|
$
|
510,447
|
$
|
516,829
|
$
|
529,531
|
||
Corporate Items and Eliminations
|
|||||||||||
Three months ended March 31
|
|||||||||||
(In millions)
|
2014
|
2013
|
|||||||||
Revenues
|
|||||||||||
NBCU LLC
|
$
|
-
|
$
|
1,338
|
|||||||
Eliminations and other
|
(886)
|
(537)
|
|||||||||
Total
|
$
|
(886)
|
$
|
801
|
|||||||
Operating Profit (Cost)
|
|||||||||||
NBCU LLC
|
$
|
-
|
$
|
1,338
|
|||||||
Principal retirement plans(a)
|
(581)
|
(792)
|
|||||||||
Restructuring and other charges
|
(376)
|
(546)
|
|||||||||
Unallocated corporate, other costs and eliminations
|
(585)
|
(479)
|
|||||||||
Total
|
$
|
(1,542)
|
$
|
(479)
|
|||||||
(a)
|
Included non-operating (non-GAAP) pension income (cost) of $(0.5) billion and $(0.7) billion in the three months ended March 31, 2014 and 2013, respectively, which includes expected return on plan assets, interest costs and non-cash amortization of actuarial gains and losses.
|
INCOME TAXES |
DISCONTINUED OPERATIONS
|
||||||||||||
Three months ended March 31
|
||||||||||||
(In millions)
|
2014
|
2013
|
||||||||||
Earnings (loss) from discontinued operations,
|
||||||||||||
net of taxes
|
$
|
12
|
$
|
(120)
|
||||||||
STATEMENT OF FINANCIAL POSITION |
·
|
The U.S. dollar was weaker against most major currencies at March 31, 2014 than at December 31, 2013, increasing the translated levels of our non-U.S. dollar assets and liabilities.
|
·
|
GE inventory balances increased $1.5 billion in order to fulfill commitments and backlog during the year.
|
·
|
GE completed acquisitions of Thermo Fisher and API in our Healthcare segment resulting in increased goodwill and intangible assets balances of $1.4 billion.
|
·
|
GE completed issuances of $3.0 billion of senior unsecured debt with maturities up to 30 years.
|
·
|
Consistent with our effort to reduce the GECC balance sheet, collections (which includes sales) on financing receivables exceeded originations by $4.0 billion and net repayments exceeded new issuances of total borrowings by $9.6 billion.
|
STATEMENT OF CASH FLOWS |
Three months ended March 31
|
|||||||||||
(In billions)
|
2014
|
2013
|
|||||||||
Operating cash collections(a)
|
$
|
25.6
|
$
|
22.5
|
|||||||
Operating cash payments
|
(24.4)
|
(22.3)
|
|||||||||
Cash dividends from GECC
|
0.5
|
-
|
|||||||||
GE cash from operating activities (GE CFOA)(a)
|
$
|
1.7
|
$
|
0.2
|
|||||||
(a)
|
GE sells customer receivables to GECC in part to fund the growth of our industrial businesses. These transactions can result in cash generation or cash use. During any given period, GE receives cash from the sale of receivables to GECC. It also foregoes collection of cash on receivables sold. The incremental amount of cash received from sale of receivables in excess of the cash GE would have otherwise collected had those receivables not been sold, represents the cash generated or used in the period relating to this activity. The incremental cash generated in GE CFOA from selling these receivables to GECC decreased GE CFOA by $0.4 billion and by $1.2 billion in the three months ended
March 31, 2014 and
2013, respectively. See Note 17 to the condensed, consolidated financial statements for additional information about the elimination of intercompany transactions between GE and GECC.
|
LIQUIDITY AND BORROWINGS |
FINANCIAL SERVICES PORTFOLIO QUALITY |
Financing receivables at
|
Nonaccrual receivables at
|
Allowance for losses at
|
|||||||||||||||
(In millions)
|
March 31, 2014
|
December 31, 2013
|
March 31, 2014
|
December 31, 2013
|
March 31, 2014
|
December 31, 2013
|
|||||||||||
Commercial
|
|||||||||||||||||
CLL
|
|||||||||||||||||
Americas
|
$
|
68,367
|
$
|
69,036
|
$
|
1,239
|
$
|
1,275
|
$
|
419
|
$
|
473
|
|||||
International(a)
|
46,208
|
47,431
|
1,415
|
1,459
|
449
|
505
|
|||||||||||
Total CLL
|
114,575
|
116,467
|
2,654
|
2,734
|
868
|
978
|
|||||||||||
Energy
|
|||||||||||||||||
Financial Services
|
2,753
|
3,107
|
43
|
4
|
16
|
8
|
|||||||||||
GECAS
|
8,851
|
9,377
|
275
|
-
|
25
|
17
|
|||||||||||
Other
|
139
|
318
|
-
|
6
|
-
|
2
|
|||||||||||
Total Commercial
|
126,318
|
129,269
|
2,972
|
2,744
|
909
|
1,005
|
|||||||||||
Real Estate
|
20,236
|
19,899
|
2,383
|
2,551
|
175
|
192
|
|||||||||||
Consumer
|
|||||||||||||||||
Non-U.S. residential
|
|||||||||||||||||
mortgages(b)
|
30,355
|
30,501
|
2,140
|
2,161
|
336
|
358
|
|||||||||||
Non-U.S. installment
|
|||||||||||||||||
and revolving credit
|
13,715
|
13,677
|
73
|
88
|
588
|
594
|
|||||||||||
U.S. installment
|
|||||||||||||||||
and revolving credit
|
52,887
|
55,854
|
2
|
2
|
2,947
|
2,823
|
|||||||||||
Non-U.S. auto
|
1,957
|
2,054
|
16
|
18
|
61
|
56
|
|||||||||||
Other
|
6,918
|
6,953
|
335
|
351
|
128
|
150
|
|||||||||||
Total Consumer
|
105,832
|
109,039
|
2,566
|
2,620
|
4,060
|
3,981
|
|||||||||||
Total
|
$
|
252,386
|
$
|
258,207
|
$
|
7,921
|
(c)
|
$
|
7,915
|
$
|
5,144
|
$
|
5,178
|
||||
(a)
|
Write-offs to net realizable value are recognized against the allowance for losses primarily in the reporting period in which management has deemed all or a portion of the financing receivable to be uncollectible, but not later than 360 days after initial recognition of a specific reserve for a collateral dependent loan. In accordance with regulatory standards that are applicable in Italy, commercial loans are considered uncollectible when there is demonstrable evidence of the debtor’s insolvency, which may result in write-offs occurring beyond 360 days after initial recognition of a specific resere.
|
(b)
|
Included financing receivables of $12
,
096 million and $12,025 million, nonaccrual receivables of $872 million and $901 million and allowance for losses of $100 million and $100 million at March 31, 2014 and December 31, 2013, respectively, primarily related to loans, net of credit insurance, whose terms permitted interest-only payments and high loan-to-value ratios at inception (greater than 90%). At origination, we underwrite loans with an adjustable rate to the reset value. Of these loans, about 84% are in our U.K. and France portfolios, which comprise mainly loans with interest-only payments, high loan-to-value ratios at inception and introductory below market rates, have a delinquency rate of 14%, have a loan-to-value ratio at origination of 82% and have re-indexed loan-to-value ratios of 82% and 65%, respectively. Re-indexed loan-to-value ratios may not reflect actual realizable values of future repossessions. At March 31, 2014, 11% (based on dollar values) of these loans in our U.K. and France portfolios have been restructured.
|
(c)
|
Of our $7.9 billion nonaccrual loans of March 31, 2014, $4.0 billion are currently paying in accordance with the contractual terms.
|
Nonaccrual financing receivables
|
Allowance for losses
|
Allowance for losses
|
||||||||||
as a percent of
|
as a percent of
|
as a percent of
|
||||||||||
total financing receivables at
|
nonaccrual financing receivables at
|
total financing receivables at
|
||||||||||
March 31, 2014
|
December 31, 2013
|
March 31, 2014
|
December 31, 2013
|
March 31, 2014
|
December 31, 2013
|
|||||||
Commercial
|
||||||||||||
CLL
|
||||||||||||
Americas
|
1.8
|
%
|
1.8
|
%
|
33.8
|
%
|
37.1
|
%
|
0.6
|
%
|
0.7
|
%
|
International
|
3.1
|
3.1
|
31.7
|
34.6
|
1.0
|
1.1
|
||||||
Total CLL
|
2.3
|
2.3
|
32.7
|
35.8
|
0.8
|
0.8
|
||||||
Energy Financial
|
||||||||||||
Services
|
1.6
|
0.1
|
37.2
|
200.0
|
0.6
|
0.3
|
||||||
GECAS
|
3.1
|
–
|
9.1
|
–
|
0.3
|
0.2
|
||||||
Other
|
–
|
1.9
|
–
|
33.3
|
–
|
0.6
|
||||||
Total Commercial
|
2.4
|
2.1
|
30.6
|
36.6
|
0.7
|
0.8
|
||||||
Real Estate
|
11.8
|
12.8
|
7.3
|
7.5
|
0.9
|
1.0
|
||||||
Consumer
|
||||||||||||
Non-U.S. residential
|
||||||||||||
mortgages(a)
|
7.0
|
7.1
|
15.7
|
16.6
|
1.1
|
1.2
|
||||||
Non-U.S. installment
|
||||||||||||
and revolving credit
|
0.5
|
0.6
|
805.5
|
675.0
|
4.3
|
4.3
|
||||||
U.S. installment and
|
||||||||||||
revolving credit
|
–
|
–
|
(b)
|
(b)
|
5.6
|
5.1
|
||||||
Non-U.S. auto
|
0.8
|
0.9
|
381.3
|
311.1
|
3.1
|
2.7
|
||||||
Other
|
4.8
|
5.0
|
38.2
|
42.7
|
1.9
|
2.2
|
||||||
Total Consumer
|
2.4
|
2.4
|
158.2
|
151.9
|
3.8
|
3.7
|
||||||
Total
|
3.1
|
3.1
|
64.9
|
65.4
|
2.0
|
2.0
|
||||||
(a)
|
Included nonaccrual financing receivables as a percent of financing receivables of 7.2% and 7.5%, allowance for losses as a percent of nonaccrual receivables of 11.5% and 11.1% and allowance for losses as a percent of total financing receivables of 0.8% and 0.8% at March 31, 2014 and December 31, 2013, respectively, primarily related to loans, net of credit insurance, whose terms permitted interest-only payments and high loan-to-value ratios at inception (greater than 90%). Compared to the overall Non-U.S. residential mortgage loan portfolio, the ratio of allowance for losses as a percent of nonaccrual financing receivables for these loans is lower, driven primarily by the higher mix of such products in the U.K. and France portfolios and as a result of the better performance and collateral realization experience in these markets.
|
(b)
|
Not meaningful.
|
Loans Classified as Impaired and Specific Reserves
|
||||||||||
(In millions)
|
March 31, 2014
|
December 31, 2013
|
||||||||
Loans requiring allowance for losses
|
||||||||||
Commercial(a)
|
$
|
950
|
$
|
1,116
|
||||||
Real Estate
|
737
|
1,245
|
||||||||
Consumer
|
2,836
|
2,879
|
||||||||
Total loans requiring allowance for losses
|
4,523
|
5,240
|
||||||||
Loans expected to be fully recoverable
|
||||||||||
Commercial(a)
|
3,024
|
2,776
|
||||||||
Real Estate
|
2,925
|
2,615
|
||||||||
Consumer
|
132
|
109
|
||||||||
Total loans expected to be fully recoverable
|
6,081
|
5,500
|
||||||||
Total impaired loans
|
$
|
10,604
|
$
|
10,740
|
||||||
Allowance for losses (specific reserves)
|
||||||||||
Commercial(a)
|
$
|
229
|
$
|
328
|
||||||
Real Estate
|
53
|
74
|
||||||||
Consumer
|
560
|
567
|
||||||||
Total allowance for losses (specific reserves)
|
$
|
842
|
$
|
969
|
||||||
Average investment during the period
|
$
|
10,671
|
$
|
12,347
|
||||||
Interest income earned while impaired(b)
|
122
|
626
|
||||||||
(a)
|
Includes CLL, Energy Financial Services, GECAS and Other.
|
(b)
|
Recognized principally on an accrual basis.
|
(In millions)
|
March 31, 2014
|
December 31, 2013
|
|||||||||
Discounted cash flow
|
$
|
5,047
|
$
|
5,558
|
|||||||
Collateral value
|
5,557
|
5,182
|
|||||||||
Total
|
$
|
10,604
|
$
|
10,740
|
|||||||
FOREIGN EXPOSURE |
Rest of
|
Total
|
||||||||||||||||||||||
March 31, 2014 (In millions)
|
Spain
|
Portugal
|
Ireland
|
Italy
|
Greece
|
Hungary
|
Europe
|
Europe
|
|||||||||||||||
Financing receivables, before allowance
|
|||||||||||||||||||||||
for losses on financing receivables
|
$
|
1,513
|
$
|
253
|
$
|
291
|
$
|
6,665
|
$
|
5
|
$
|
2,882
|
$
|
69,131
|
$
|
80,740
|
|||||||
Allowance for losses on
|
|||||||||||||||||||||||
financing receivables
|
(100)
|
(19)
|
(3)
|
(206)
|
-
|
(72)
|
(784)
|
(1,184)
|
|||||||||||||||
Financing receivables, net of allowance
|
|||||||||||||||||||||||
for losses on financing receivables(a)(b)
|
1,413
|
234
|
288
|
6,459
|
5
|
2,810
|
68,347
|
79,556
|
|||||||||||||||
Investments(c)(d)
|
3
|
-
|
-
|
465
|
-
|
104
|
2,130
|
2,702
|
|||||||||||||||
Cost and equity method investments(e)
|
310
|
-
|
451
|
57
|
35
|
-
|
1,739
|
2,592
|
|||||||||||||||
Derivatives, net of collateral(c)(f)
|
2
|
-
|
-
|
63
|
-
|
-
|
101
|
166
|
|||||||||||||||
ELTO(g)
|
431
|
113
|
466
|
739
|
239
|
324
|
9,058
|
11,370
|
|||||||||||||||
Real estate held for investment(g)
|
790
|
-
|
-
|
424
|
-
|
-
|
4,228
|
5,442
|
|||||||||||||||
Total funded exposures(h)(i)
|
$
|
2,949
|
$
|
347
|
$
|
1,205
|
$
|
8,207
|
$
|
279
|
$
|
3,238
|
$
|
85,603
|
$
|
101,828
|
|||||||
Unfunded commitments(j)
|
$
|
16
|
$
|
7
|
$
|
130
|
$
|
194
|
$
|
3
|
$
|
812
|
$
|
6,165
|
$
|
7,327
|
|||||||
(a)
|
Financing receivable amounts are classified based on the location or nature of the related obligor.
|
(b)
|
Substantially all relates to non-sovereign obligors. Includes residential mortgage loans of approximately $30.1 billion before consideration of purchased credit protection. We have third-party mortgage insurance for less than 10% of these residential mortgage loans, which were primarily originated in France and the U.K.
|
(c)
|
Investments and derivatives are classified based on the location of the parent of the obligor or issuer.
|
(d)
|
Includes $0.8 billion related to financial institutions, $0.3 billion related to non-financial institutions and $1.6 billion related to sovereign issuers. Sovereign issuances totaled $0.1 billion and $0.1 billion related to Italy and Hungary, respectively. We held no investments issued by sovereign entities in the other focus countries.
|
(e)
|
Substantially all is non-sovereign.
|
(f)
|
Net of cash collateral; entire amount is non-sovereign.
|
(g)
|
These assets are held under long-term investment and operating strategies, and our ELTO strategies contemplate an ability to redeploy assets under lease should default by the lessee occur. The values of these assets could be subject to decline or impairment in the current environment.
|
(h)
|
Excludes $39.7 billion of cash and equivalents, which is composed of $22.6 billion of cash on short-term placement with highly rated global financial institutions based in Europe, sovereign central banks and agencies or supranational entities, of which $1.4 billion is in focus countries, and $17.1 billion of cash and equivalents placed with highly rated European financial institutions on a short-term basis, secured by U.S. Treasury securities ($9.0 billion) and sovereign bonds of non-focus countries ($8.1 billion), where the value of our collateral exceeds the amount of our cash exposure.
|
(i)
|
Rest of Europe included $2.0 billion and $0.2 billion of exposure for Russia and Ukraine, respectively, substantially all ELTO and financing receivables related to commercial aircraft in our GECAS portfolio.
|
(j)
|
Includes ordinary course of business lending commitments, commercial and consumer unused revolving credit lines, inventory financing arrangements and investment commitments.
|
REGULATIONS AND SUPERVISION |
(a)
|
Information is presented on a fiscal calendar basis, consistent with our quarterly financial reporting.
|
(b)
|
This category includes 194 thousand shares repurchased from our various benefit plans.
|
(c)
|
Shares are repurchased through the 2007 GE Share Repurchase Program (the Program). As of December 31, 2013, we were authorized to repurchase up to $35 billion of our common stock through 2015 and we had repurchased a total of approximately $22.7 billion under the Program. The Program is flexible and shares are acquired with a combination of borrowings and free cash flow from the public markets and other sources, including GE Stock Direct, a stock purchase plan that is available to the public.
|
General Electric Company
(Registrant)
|
|||
May 9, 2014
|
/s/ Jan R. Hauser
|
||
Date
|
Jan R. Hauser
Vice President and Controller
Duly Authorized Officer and Principal Accounting Officer
|
1.
|
Grant.
The Management Development and Compensation Committee (“Committee”) of the Board of Directors of General Electric Company (“Company”) has granted Restricted Stock Units, from time to time with Dividend Equivalents as the Committee may determine (“RSUs”), to the individual named in this Grant Agreement (“Grantee”). Each RSU entitles the Grantee to receive from the Company (i) one share of General Electric Company common stock, par value $0.06 per share (“Common Stock”) for which the restrictions set forth in paragraph 3 lapse in accordance with their terms, and (ii) cash payments based on dividends paid to shareholders as set forth in paragraph 2, each in accordance with the terms of this Grant, the GE 2007 Long Term Incentive Plan (“Plan”), country addendums and any rules and procedures adopted by the Committee.
|
2.
|
Dividend Equivalents
. Until such time as the following restrictions lapse or the RSUs are cancelled, whichever occurs first, the Company may pay the Grantee on a quarterly basis a cash amount equal to the number of RSUs subject to restriction times the per share quarterly dividend payment made to shareholders of the Company’s Common Stock, with such payments to be made reasonably promptly after the payment date of each quarterly dividend. Alternatively, the Company will establish an amount to be paid to the Grantee (“Dividend Equivalent”) equal to the number of RSUs subject to restriction times the per share quarterly dividend payments made to shareholders of the Company’s Common Stock. The Company shall accumulate Dividend Equivalents and will pay the Grantee a cash amount equal to the Dividend Equivalents accumulated and unpaid as of the date that restrictions lapse (without interest) reasonably promptly after such date. Notwithstanding the foregoing, any accumulated and unpaid Dividend Equivalents attributable to RSUs that are cancelled will not be paid and are immediately forfeited upon cancellation of the RSUs. The determination regarding the form and type of dividend equivalents will be made by the Committee at the time of grant.
|
3.
|
Restrictions.
Restrictions on the number of RSUs specified in this Grant Agreement will lapse on the designated Restriction Lapse Dates only if the Grantee has been continuously employed by the Company or one of its affiliates to such dates. RSUs shall be immediately cancelled upon termination of employment, except as follows:
|
a.
|
Employment Termination Due to Death.
If the Grantee’s employment with the Company or any of its affiliates terminates as a result of the Grantee’s death, then restrictions on all RSUs shall immediately lapse.
|
b.
|
Employment Termination Due to Transfer of Business to Successor Employer.
If the Grantee’s employment with the Company or any of its affiliates terminates as a result of employment by a successor employer to which the Company has transferred a business operation, then restrictions on all RSUs shall immediately lapse.
|
c.
|
Employment Termination More Than One Year After Grant Date.
If, on or after the first anniversary of the Grant Date, the Grantee’s employment with the Company or any of its affiliates terminates as a result of any of the reasons set forth below, or the Grantee becomes eligible to retire or meets the age and service requirements, each as specified in (c)(i) below, then restrictions on RSUs shall automatically lapse or the RSUs shall be cancelled as provided below (subject to any rules adopted by the Committee):
|
i |
.
|
Termination/Eligibility for Retirement or Termination for Total Disability.
Restrictions on all RSUs shall immediately lapse if (a) the Grantee becomes eligible for Optional Retirement at or after age 60 under the U.S. GE Pension Plan, or (b) the Grantee is not a participant in the U.S. GE Pension Plan and attains at least age 60 while still employed by the Company or an affiliate and completes 5 or more years of continuous service with the Company and any of its affiliates, or (c) the Grantee’s employment with the Company or any of its affiliates terminates as a result of a total disability, i.e., the inability to perform any job for which the Grantee is reasonably suited by means of education, training or experience.
|
ii |
.
|
Termination for Layoff or Plant Closing.
If the Grantee’s employment with the Company or any of its affiliates terminates as a result of a layoff or plant closing (without regard to any period of protected service), each as contemplated in the Company’s U.S. Layoff Benefit Plan, then restrictions on RSUs scheduled to lapse at or before the end of the second calendar year following the year in which employment terminates, shall immediately lapse, and the remaining RSUs covered by this Grant shall be immediately cancelled.
|
iii |
.
|
Termination Due to Other Reasons.
If the Grantee’s employment with the Company or any of its affiliates terminates for any other reason, and the Grantee and the Company have not entered into a written separation agreement explicitly providing otherwise in accordance with rules and procedures adopted by the Committee, then the remaining RSUs shall be immediately cancelled.
|
d.
|
Affiliate.
For purposes of this Grant, “affiliate” shall mean (i) any entity that, directly or indirectly, is owned 50% or more by the Company and thereby deemed under its control and (ii) any entity in which the Company has a significant equity interest as determined by the Committee. Transfer of employment among the Company and any of its affiliates is not a termination of employment for purposes of this Grant.
|
4.
|
Delivery and Withholding Tax.
Upon the lapse of restrictions set forth in paragraph 3 in accordance with their terms, the Company shall deliver to the Grantee by mail or otherwise a certificate for such shares as soon as practicable, provided however, that the date of issuance or delivery may be postponed by the Company for such period as may be required for it with reasonable diligence to comply with any applicable listing requirements of any national securities exchange and requirements under any law or regulation applicable to the issuance or transfer of such shares. Further, the Grantee shall pay to or reimburse the Company for any federal, state, local or foreign taxes required to be withheld and paid over by it, at such time and upon such terms and conditions as the Company may prescribe before the Company shall be required to deliver such shares.
|
5.
|
Alteration/Termination.
The Company shall have the right at any time in its sole discretion to amend, alter, suspend, discontinue or terminate any RSUs without the consent of the Grantee. Also, the RSUs shall be null and void to the extent the grant of RSUs or the lapse of restrictions thereon is prohibited under the laws of the country of residence of the Grantee.
|
6.
|
Plan Terms.
All terms used in this Grant have the same meaning as given such terms in the Plan, a copy of which will be furnished upon request.
|
7.
|
Entire Agreement.
This Grant, the Plan, country addendums and the rules and procedures adopted by the Committee contain all of the provisions applicable to the RSUs and no other statements, documents or practices may modify, waive or alter such provisions unless expressly set forth in writing, signed by an authorized officer of the Company and delivered to the Grantee.
|
1
.
|
Grant.
The Management Development and Compensation Committee (“Committee”) of the Board of Directors of General Electric Company (“Company”) has granted Restricted Stock Units, from time to time with Dividend Equivalents as the Committee may determine (“RSUs”), to the individual named in this Grant Agreement (“Grantee”). Each RSU entitles the Grantee to receive from the Company (i) one share of General Electric Company common stock, par value $0.06 per share (“Common Stock”) for which the restrictions set forth in paragraph 3 lapse in accordance with their terms, and (ii) cash payments based on dividends paid to shareholders as set forth in paragraph 2, each in accordance with the terms of this Grant, the GE 2007 Long Term Incentive Plan (“Plan”), country addendums and any rules and procedures adopted by the Committee.
|
2
.
|
Dividend Equivalents.
Until the Grantee’s employment with the Company and its affiliates is terminated for any reason, or until such time as the following restrictions lapse or the RSUs are cancelled, whichever occurs first, the Company may pay the Grantee on a quarterly basis a cash amount equal to the number of RSUs subject to restriction times the per share quarterly dividend payment made to shareholders of the Company’s Common Stock, with such payments to be made reasonably promptly after the payment date of each quarterly dividend. Alternatively, the Company will establish an amount to be paid to the Grantee (“Dividend Equivalent”) equal to the number of RSUs subject to restriction times the per share quarterly dividend payments made to shareholders of the Company’s Common Stock. The Company shall accumulate Dividend Equivalents and will pay the Grantee a cash amount equal to the Dividend Equivalents accumulated and unpaid as of the date that restrictions lapse (without interest) reasonably promptly after such date. Notwithstanding the foregoing, any accumulated and unpaid Dividend Equivalents attributable to RSUs that are cancelled will not be paid and are immediately forfeited upon cancellation of the RSUs. The determination regarding the form and type of dividend equivalents will be made by the Committee at the time of grant.
|
3.
|
Restrictions.
Restrictions on the number of RSUs specified in this Grant Agreement will lapse on the designated Restriction Lapse Dates only if the Grantee has been continuously employed by the Company or one of its affiliates to such dates. The Committee may, in circumstances determined in its sole discretion, provide for the lapse of the above restrictions at earlier dates. Notwithstanding the forgoing, restrictions on all RSUs will immediately lapse upon the Grantee’s termination of employment with the Company or any of its affiliates by reason of the Grantee’s death, provided the Grantee had been continuously employed as provided above to the date of termination.
|
4
.
|
Delivery and Withholding Tax.
Upon the lapse of restrictions set forth in paragraph 3 in accordance with their terms, the Company shall deliver to the Grantee by mail or otherwise a certificate for such shares as soon as practicable, provided however, that the date of issuance or delivery may be postponed by the Company for such period as may be required for it with reasonable diligence to comply with any applicable listing requirements of any national securities exchange and requirements under any law or regulation applicable to the issuance or transfer of such shares. Further, the Grantee shall pay to or reimburse the Company for any federal, state, local or foreign taxes required to be withheld and paid over by it, at such time and upon such terms and conditions as the Company may prescribe before the Company shall be required to deliver such shares.
|
5
.
|
Alteration/Termination.
The Company shall have the right at any time in its sole discretion to amend, alter, suspend, discontinue or terminate any RSUs without the consent of the Grantee. Any RSUs for which the restrictions do not lapse in accordance with the terms in paragraph 3 above shall be canceled. Also, the RSUs shall be null and void to the extent the grant of RSUs or the lapse of restrictions thereon is prohibited under the laws of the country of residence of the Grantee.
|
6
.
|
Affiliate.
For purposes of this Grant, “affiliate” shall mean (i) any entity that, directly or indirectly, is owned 50% or more by the Company and thereby deemed under its control and (ii) any entity in which the Company has a significant equity interest as determined by the Committee. Transfer of employment among the Company and any of its affiliates is not a termination of employment for purposes of this Grant.
|
7
.
|
Plan Terms.
All terms used in this Grant have the same meaning as given such terms in the Plan, a copy of which will be furnished upon request.
|
8.
|
Entire Agreement.
This Grant, the Plan, country addendums and the rules and procedures adopted by the Committee, contain all of the provisions applicable to the RSUs and no other statements, documents or practices may modify, waive or alter such provisions unless expressly set forth in writing, signed by an authorized officer of the Company and delivered to the Grantee.
|
Three months
|
|||||
ended
|
|||||
March 31, 2014
|
|||||
(Dollars in millions)
|
(Unaudited)
|
||||
General Electric Company and consolidated affiliates
|
|||||
Earnings(a)
|
$
|
3,313
|
|||
Plus:
|
|||||
Interest and other financial charges included in expense(b)
|
2,414
|
||||
One-third of rental expense(c)
|
122
|
||||
Adjusted “earnings”
|
$
|
5,849
|
|||
Fixed charges:
|
|||||
Interest and other financial charges included in expense(b)
|
$
|
2,414
|
|||
Interest capitalized
|
7
|
||||
One-third of rental expense(c)
|
122
|
||||
Total fixed charges
|
$
|
2,543
|
|||
Ratio of earnings to fixed charges
|
2.30
|
||||
(a)
|
Earnings before income taxes, noncontrolling interests, discontinued operations and undistributed earnings of equity investees.
|
(b)
|
Included interest on tax deficiencies.
|
(c)
|
Considered to be representative of interest factor in rental expense.
|
I, Jeffrey R. Immelt, certify that:
|
||
1.
|
I have reviewed this quarterly report on Form 10-Q of General Electric Company;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Jeffrey R. Immelt
|
|
Jeffrey R. Immelt
|
|
Chief Executive Officer
|
I, Jeffrey S. Bornstein, certify that:
|
||
1.
|
I have reviewed this quarterly report on Form 10-Q of General Electric Company;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Jeffrey S. Bornstein
|
|
Jeffrey S. Bornstein
|
|
Chief Financial Officer
|
(1)
|
The report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the registrant.
|
/s/ Jeffrey R. Immelt
|
|
Jeffrey R. Immelt
|
|
Chief Executive Officer
|
|
/s/ Jeffrey S. Bornstein
|
|
Jeffrey S. Bornstein
|
|
Chief Financial Officer
|
·
|
Operating earnings and operating earnings per share (EPS)
|
·
|
Operating and non-operating pension costs (income)
|
·
|
GE Capital ending net investment (ENI), excluding cash and equivalents
|
·
|
Industrial segment organic revenue growth
|
Operating Earnings and Operating EPS
|
|||||||
Three months ended March 31
|
|||||||
(In millions; except earnings per share)
|
2014
|
2013
|
V%
|
||||
Earnings from continuing operations attributable to GE
|
$
|
2,987
|
$
|
3,647
|
(18)%
|
||
Adjustment (net of tax): non-operating pension costs/(income)
|
342
|
423
|
|||||
Operating earnings
|
$
|
3,329
|
$
|
4,070
|
(18)%
|
||
Earnings per share – diluted(a)
|
|||||||
Continuing earnings per share
|
$
|
0.29
|
$
|
0.35
|
(17)%
|
||
Adjustment (net of tax): non-operating pension costs/(income)
|
0.03
|
0.04
|
|||||
Operating earnings per share
|
$
|
0.33
|
$
|
0.39
|
(15)%
|
||
(a)
|
Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.
|
GE Capital Ending Net Investment (ENI), Excluding Cash and Equivalents
|
||
(In billions)
|
March 31, 2014
|
|
GECC total assets
|
$
|
510.4
|
Less assets of discontinued operations
|
1.4
|
|
Less non-interest bearing liabilities
|
60.0
|
|
GE Capital ENI
|
449.0
|
|
Less cash and equivalents
|
75.3
|
|
GE Capital ENI, excluding cash and equivalents
|
$
|
373.7
|
Industrial Segment Organic Revenue Growth
|
||||||||
Three months ended March 31
|
||||||||
(Dollars in millions)
|
2014
|
2013
|
V%
|
|||||
Segment revenues:
|
||||||||
Power & Water
|
$
|
5,509
|
$
|
4,825
|
||||
Oil & Gas
|
4,308
|
3,399
|
||||||
Energy Management
|
1,672
|
1,748
|
||||||
Aviation
|
5,778
|
5,074
|
||||||
Healthcare
|
4,198
|
4,289
|
||||||
Transportation
|
1,227
|
1,422
|
||||||
Appliances & Lighting
|
1,857
|
1,917
|
||||||
Industrial segment revenues
|
24,549
|
22,674
|
8%
|
|||||
Less the effects of:
|
||||||||
Acquisitions, business dispositions (other than dispositions of businesses acquired
|
||||||||
for investment) and currency exchange rates
|
438
|
317
|
||||||
Industrial segment revenues excluding effects of acquisitions, business dispositions
|
||||||||
(other than dispositions of businesses acquired for investment) and currency
|
||||||||
exchange rates (Industrial segment organic revenues)
|
$
|
24,111
|
$
|
22,357
|
8%
|
|||