(Mark One)
☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2015
OR
|
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from ____ to ____
|
Commission file number 001-00035
GENERAL ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
|
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 ☑
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
Smaller reporting company ☐
|
Page
|
||
Forward Looking Statements
|
4
|
|
Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)
|
5
|
|
Key Performance Indicators
|
9
|
|
Consolidated Results
|
10
|
|
Segment Operations
|
12
|
|
Corporate Items and Eliminations
|
29
|
|
Discontinued Operations
|
30
|
|
Other Consolidated Information
|
31
|
|
Statement of Financial Position
|
32
|
|
Financial Resources and Liquidity
|
35
|
|
Exposures
|
40
|
|
Critical Accounting Estimates
|
42
|
|
Other Items
|
43
|
|
Controls and Procedures
|
44
|
|
Other Financial Data
|
44
|
|
Regulations and Supervision
|
45
|
|
Legal Proceedings
|
46
|
|
Financial Statements and Notes
|
49
|
|
Exhibits
|
99
|
|
Form 10-Q Cross Reference Index
|
100
|
|
Signatures
|
101
|
·
|
obtaining (or the timing of obtaining) any required regulatory reviews or approvals or any other consents or approvals associated with our announced plan to reduce the size of our financial services businesses;
|
·
|
our ability to complete incremental asset sales as part of this plan in a timely manner (or at all) and at the prices we have assumed;
|
·
|
changes in law, economic and financial conditions, including interest and exchange rate volatility, commodity and equity prices and the value of financial assets, including the impact of these conditions on our ability to sell or the value of incremental assets to be sold as part of this plan as well as other aspects of this plan;
|
·
|
the impact of conditions in the financial and credit markets on the availability and cost of GECC's funding, and GECC's exposure to counterparties;
|
·
|
the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults;
|
·
|
pending and future mortgage loan repurchase claims and other litigation claims in connection with WMC, which may affect our estimates of liability, including possible loss estimates;
|
·
|
our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so;
|
·
|
the adequacy of our cash flows and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at planned levels;
|
·
|
GECC's ability to pay dividends to GE at the planned level, which may be affected by GECC's cash flows and earnings, financial services regulation and oversight, and other factors;
|
·
|
our ability to convert pre-order commitments/wins into orders;
|
·
|
the price we realize on orders since commitments/wins are stated at list prices;
|
·
|
customer actions or developments such as early aircraft retirements or reduced energy demand and other factors that may affect the level of demand and financial performance of the major industries and customers we serve;
|
·
|
the effectiveness of our risk management framework;
|
·
|
the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation and litigation;
|
·
|
adverse market conditions, timing of and ability to obtain required bank regulatory approvals, or other factors relating to us or Synchrony Financial that could prevent us from completing the Synchrony Financial split-off as planned;
|
·
|
our capital allocation plans, as such plans may change including with respect to the timing and size of share repurchases, acquisitions, joint ventures, dispositions and other strategic actions;
|
·
|
our success in completing, including obtaining regulatory approvals for, announced transactions, such as the proposed transactions and alliances with Alstom, Appliances and Real Estate, and our ability to realize anticipated earnings and savings;
|
·
|
our success in integrating acquired businesses and operating joint ventures;
|
·
|
the impact of potential information technology or data security breaches; and
|
·
|
the other factors that are described in "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2014.
|
·
|
General Electric or the Company - the parent company, General Electric Company.
|
·
|
GE - the adding together of all affiliates other than General Electric Capital Corporation (GECC), whose continuing operations are presented on a one-line basis, giving effect to the elimination of transactions among such affiliates. Transactions between GE and GECC have not been eliminated at the GE level. We present the results of GE in the center columns of our consolidated statements of earnings, financial position and cash flows. An example of a GE metric is GE cash from operating activities (GE CFOA).
|
·
|
General Electric Capital Corporation or GECC or Financial Services – the adding together of all affiliates of GECC, giving effect to the elimination of transactions among such affiliates. We present the results of GECC in the right-side columns of our consolidated statements of earnings, financial position and cash flows. It should be noted that GECC is sometimes referred to as GE Capital or Capital, when not in the context of discussing segment results.
|
·
|
GE consolidated – the adding together of GE and GECC, giving effect to the elimination of transactions between GE and GECC. We present the results of GE consolidated in the left-side columns of our consolidated statements of earnings, financial position and cash flows.
|
·
|
Industrial – GE excluding GECC. We believe that this provides investors with a view as to the results of our industrial businesses and corporate items. An example of an Industrial metric is Industrial CFOA, which is GE CFOA excluding the effects of dividends from GECC.
|
·
|
Industrial segment – the sum of our seven industrial reporting segments without giving effect to the elimination of transactions among such segments. We believe that this provides investors with a view as to the results of our industrial segments, without inter-segment eliminations and corporate items. An example of an industrial segment metric is industrial segment revenue growth.
|
·
|
Total segment – the sum of our seven industrial reporting segments and one financial services reporting segment, without giving effect to the elimination of transactions among such segments. We believe that this provides investors with a view as to the results of all of our segments, without inter-segment eliminations and corporate items.
|
·
|
Revenues – unless otherwise indicated, we refer to captions such as "revenues and other income", simply as revenues.
|
·
|
Organic revenues – revenues excluding the effects of acquisitions, dispositions and foreign currency exchange.
|
·
|
Earnings – unless otherwise indicated, we refer to captions such as "earnings from continuing operations attributable to the company" simply as earnings.
|
·
|
Earnings per share (EPS) – unless otherwise indicated, we refer to "earnings per share from continuing operations attributable to the company" simply as earnings per share.
|
·
|
Operating earnings – GE earnings from continuing operations attributable to the company excluding the impact of non-operating pension costs.
|
·
|
Segment profit – refers to the operating profit of the industrial segments and the net earnings of the financial services segment. See page 12 for a description of the basis for segment profits.
|
·
|
Operating pension costs – comprise the service cost of benefits earned, prior service cost amortization and curtailment loss for our principal pension plans.
|
·
|
Non-operating pension costs – comprise the expected return on plan assets, interest cost on benefit obligations and net actuarial loss amortization for our principal pension plans.
|
·
|
Operating earnings (loss) and operating EPS – Excluding the GE Capital exit impacts
|
·
|
Operating and non-operating pension costs
|
·
|
Consolidated and GECC Revenues – Excluding the GE Capital exit impacts
|
·
|
Industrial segment organic revenue growth
|
·
|
Oil & Gas organic revenue and operating profit growth
|
·
|
Industrial cash flows from operating activities (Industrial CFOA)
|
·
|
GE Capital ending net investment (ENI), excluding liquidity
|
·
|
GECC Tier 1 common ratio estimate
|
Power & Water
|
Aviation
|
Transportation
|
|||
Oil & Gas
|
Healthcare
|
Appliances & Lighting
|
|||
Energy Management
|
GE Capital
|
REVENUES PERFORMANCE
|
INDUSTRIAL SEGMENT PROFIT
|
INDUSTRIAL SEGMENT MARGIN
|
||||||||
1Q 2015
|
||||||||||
Industrial Segment
|
(1)%
|
|||||||||
Industrial Segment Organic*
|
3%
|
|||||||||
Financial Services
|
(39)%
|
|||||||||
Financial Services excluding the GE Capital exit impacts*
|
(7)%
|
|||||||||
EARNINGS (LOSS) PER SHARE
|
INDUSTRIAL ORDERS
|
INDUSTRIAL BACKLOG
|
||||||||
¢ ¢ Earnings (Loss) ¢ ¢ Operating Earnings (Loss)*
(a) Operating earnings (loss) per share excluding the GE Capital exit impacts* was $0.31.
|
|
Equipment
Services
|
|
Equipment
Services
|
||||||
GE CFOA
|
SIGNIFICANT DEVELOPMENTS IN 2015
|
|||||||||
|
GECC Dividend
Industrial CFOA*
|
We announced the GE Capital Exit Plan.
We signed an agreement to sell our consumer finance business in Australia and New
Zealand for approximately 6.8 billion Australian dollars and 1.4 billion New Zealand dollars.
We acquired Milestone Aviation Group for $1.8 billion on January 30, 2015.
The effects of a stronger U.S. dollar primarily relative to the euro decreased consolidated revenues by $1.2 billion.
GE returned $2.4 billion to shareowners in the three months ended March 31, 2015
through dividends and stock buybacks.
|
REVENUES
|
INDUSTRIAL SEGMENT EQUIPMENT
& SERVICES REVENUES
|
||
|
|
Equipment
Services
|
|
COMMENTARY: 2015-2014
|
|||
Consolidated revenues decreased $4.2 billion, or 12%, primarily due to charges associated with the GE Capital Exit Plan of $3.2 billion and the impact of foreign exchange of $1.2 billion. Consolidated revenues excluding the GE Capital exit impacts* decreased 3%.
· Industrial segment revenues decreased 1%, reflecting the unfavorable impact of foreign exchange of $0.9 billion, partially offset by higher volume.
· Financial Services revenues decreased 39% primarily due to the effects of the GE Capital Exit Plan. Financial Services revenues excluding the GE Capital exit impacts* decreased 7%.
· The effects of acquisitions increased consolidated revenues $0.2 billion and $0.6 billion in 2015 and 2014, respectively. Dispositions affected our ongoing results through lower revenues of $0.3 billion and $2.0 billion in 2015 and 2014, respectively.
|
|||
EARNINGS (LOSS)
|
INDUSTRIAL SELLING, GENERAL & ADMINISTRATIVE (SG&A) AS A % OF SALES
|
|
¢ ¢ Earnings (Loss) ¢ ¢ Operating Earnings (Loss)*
(a) Operating earnings excluding the GE Capital exit impacts* was $3.1 billion.
|
||
COMMENTARY: 2015 - 2014
|
||
Consolidated earnings decreased $14.1 billion primarily due to lower financial services income resulting from charges associated with the GE Capital Exit Plan of $13.8 billion. The charges included: tax expense related to expected repatriation of foreign earnings and write-off of deferred tax assets; asset impairments due to shortened hold periods; and charges on businesses held for sale, including goodwill allocation.
· Industrial segment profit increased 9% largely driven by Aviation.
· Industrial segment margin increased 120 basis points (bps) driven by higher productivity and positive business mix, partially offset by the effects of inflation.
· Financial Services earnings decreased primarily due to charges associated with the GE Capital Exit Plan.
· The effects of acquisitions on our consolidated net earnings were an insignificant amount in 2015 and an increase of $0.1 billion in 2014. The effects of dispositions on net earnings were an insignificant amount and a decrease of $1.2 billion in 2015 and 2014, respectively.
· Industrial SG&A as a percentage of total sales increased slightly to16% primarily as a result of higher non-operating pension costs, restructuring and acquisition-related costs, partially offset by the favorable impact of global cost reduction initiatives.
|
·
|
Interest and other financial charges and income taxes are excluded in determining segment profit (which we sometimes refer to as "operating profit") for the industrial segments.
|
·
|
Interest and other financial charges and income taxes are included in determining segment profit (which we sometimes refer to as "net earnings") for the GE Capital segment.
|
SUMMARY OF OPERATING SEGMENTS
|
||||||||
Three months ended March 31
|
||||||||
(In millions)
|
2015
|
2014
|
V%
|
|||||
Revenues
|
||||||||
Power & Water
|
$
|
5,716
|
$
|
5,509
|
4 %
|
|||
Oil & Gas
|
3,961
|
4,308
|
(8)%
|
|||||
Energy Management
|
1,685
|
1,672
|
1 %
|
|||||
Aviation
|
5,674
|
5,778
|
(2)%
|
|||||
Healthcare
|
4,075
|
4,198
|
(3)%
|
|||||
Transportation
|
1,308
|
1,227
|
7 %
|
|||||
Appliances & Lighting
|
1,941
|
1,857
|
5 %
|
|||||
Total industrial segment revenues
|
24,360
|
24,549
|
(1)%
|
|||||
GE Capital
|
5,982
|
9,885
|
(39)%
|
|||||
Total segment revenues
|
30,342
|
34,434
|
(12)%
|
|||||
Corporate items and eliminations
|
(986)
|
(886)
|
(11)%
|
|||||
Consolidated revenues
|
$
|
29,356
|
$
|
33,548
|
(12)%
|
|||
Segment profit (loss)
|
||||||||
Power & Water
|
$
|
871
|
$
|
888
|
(2)%
|
|||
Oil & Gas
|
432
|
446
|
(3)%
|
|||||
Energy Management
|
28
|
5
|
F
|
|||||
Aviation
|
1,314
|
1,115
|
18 %
|
|||||
Healthcare
|
587
|
570
|
3 %
|
|||||
Transportation
|
225
|
202
|
11 %
|
|||||
Appliances & Lighting
|
103
|
53
|
94 %
|
|||||
Total industrial segment profit
|
3,560
|
3,279
|
9 %
|
|||||
GE Capital
|
(12,544)
|
1,693
|
U
|
|||||
Total segment profit (loss)
|
(8,984)
|
4,972
|
U
|
|||||
Corporate items and eliminations
|
(1,692)
|
(1,542)
|
(10)%
|
|||||
GE interest and other financial charges
|
(389)
|
(365)
|
(7)%
|
|||||
GE provision for income taxes
|
(306)
|
(318)
|
4 %
|
|||||
Earnings (loss) from continuing operations
|
||||||||
attributable to the Company
|
(11,371)
|
2,747
|
U
|
|||||
Earnings (loss) from discontinued
|
||||||||
operations, net of taxes
|
(2,202)
|
252
|
U
|
|||||
Consolidated net earnings (loss)
|
||||||||
attributable to the Company
|
$
|
(13,573)
|
$
|
2,999
|
U
|
|||
\
|
2015 YTD SUB-SEGMENT REVENUES
|
EQUIPMENT/SERVICES REVENUES
|
|||
(a) Includes Water Process Technologies and Nuclear
|
Services Equipment
|
|||
ORDERS
|
BACKLOG
|
|||
|
Equipment
Services
|
|
Equipment
Services
|
|
UNIT SALES
|
||||
|
SEGMENT REVENUES & PROFIT
|
SEGMENT PROFIT MARGIN
|
|||||
¢ ¢ Revenues ¢ ¢ Profit
|
||||||
SEGMENT REVENUES & PROFIT WALK:
|
COMMENTARY: 2015 - 2014
|
|||||
Segment revenues up $0.2 billion or 4%;
Segment profit down 2% as a result of:
·The increase in revenues was driven by higher volume, primarily higher equipment sales at PGP and service sales at PGS partially offset by lower volume at Renewable Energy and Distributed Power, as well as the impact of a stronger U.S. dollar.
·The decrease in profit was mainly due to lower cost productivity driven by HA gas turbine build costs, partially offset by higher volume on gas turbines and favorable business mix.
|
||||||
Revenues
|
Profit
|
|||||
March 31, 2014
|
$
|
5.5
|
$
|
0.9
|
||
Volume
|
0.4
|
0.1
|
||||
Price
|
-
|
-
|
||||
Foreign Exchange
|
(0.3)
|
-
|
||||
(Inflation)/Deflation
|
N/A
|
-
|
||||
Mix
|
N/A
|
0.1
|
||||
Productivity
|
N/A
|
(0.2)
|
||||
Other
|
0.1
|
-
|
||||
March 31, 2015
|
$
|
5.7
|
$
|
0.9
|
||
2015 YTD SUB-SEGMENT REVENUES
|
EQUIPMENT/SERVICES REVENUES
|
|||
).
(a) Our drilling product line, previously part of Drilling & Surface (D&S), was realigned as part of Subsea Systems (SS) effective January 1, 2015. Accordingly, Subsea Systems is now Subsea Systems & Drilling (SS&D).
|
Services Equipment
|
|||
ORDERS
|
BACKLOG
|
|||
|
Equipment
Services
|
|
Equipment
Services
|
|
SEGMENT REVENUES & PROFIT
|
SEGMENT PROFIT MARGIN
|
|||||
¢ ¢ Revenues ¢ ¢ Profit
|
||||||
SEGMENT REVENUES & PROFIT WALK:
|
COMMENTARY: 2015 - 2014
|
|||||
Segment revenues down $0.3 billion or 8%;
Segment profit down 3% as a result of:
·The decrease in revenues was primarily due to the effects of a stronger U.S. dollar and lower other income. These decreases were partially offset by higher volume. Organic revenues* for the first quarter of 2015 were flat compared with the first quarter of 2014.
·The decrease in operating profit reflects the effects of a stronger U.S. dollar ($0.1 billion). Organic operating profit* grew 11% in the first quarter of 2015.
|
||||||
Revenues
|
Profit
|
|||||
March 31, 2014
|
$
|
4.3
|
$
|
0.4
|
||
Volume
|
0.1
|
-
|
||||
Price
|
-
|
-
|
||||
Foreign Exchange
|
(0.3)
|
(0.1)
|
||||
(Inflation)/Deflation
|
N/A
|
-
|
||||
Mix
|
N/A
|
-
|
||||
Productivity
|
N/A
|
0.2
|
||||
Other
|
(0.2)
|
(0.2)
|
||||
March 31, 2015
|
$
|
4.0
|
$
|
0.4
|
||
2015 YTD SUB-SEGMENT REVENUES
|
EQUIPMENT/SERVICES REVENUES
|
|||
Services Equipment
|
||||
ORDERS
|
BACKLOG
|
|||
|
Equipment
Services
|
|
Equipment
Services
|
|
SEGMENT REVENUES & PROFIT
|
SEGMENT PROFIT MARGIN
|
||||||
¢ ¢ Revenues ¢ ¢ Profit
¢ ¢ Revenues ¢ ¢ Profit
|
|||||||
COMMENTARY: 2015 - 2014
|
|||||||
Segment revenues up 1% as a result of:
|
|||||||
·Higher volume ($0.1 billion), partially offset by the effects of a stronger U.S. dollar.
Segment profit margin up as a result of:
·Continued SG&A cost reductions.
|
|||||||
2015 YTD SUB-SEGMENT REVENUES
|
EQUIPMENT/SERVICES REVENUES
|
|||
Services Equipment
|
||||
ORDERS
|
BACKLOG
|
|||
|
Equipment
Services
|
|
Equipment
Services
|
|
UNIT SALES
|
||||
(a)GEnx engines are a subset of commercial engines
(b)Commercial spares shipment rate in millions of dollars per day
|
SEGMENT REVENUES & PROFIT
|
SEGMENT PROFIT MARGIN
|
|||||
¢ ¢ Revenue ¢ ¢ Profit
|
||||||
SEGMENT REVENUES & PROFIT WALK:
|
COMMENTARY: 2015 - 2014
|
|||||
Segment revenues down $0.1billion or 2%;
Segment profit up $0.2 billion or 18% as a result of:
·The decrease in revenues was due to lower volume driven by Military and GEnx engines, partially offset by the effects of higher prices in Commercial Engines and Commercial Services businesses.
·The increase in profit was mainly due to higher prices in our Commercial Engines and Commercial Services businesses as well as favorable business mix. These increases were partially offset by effects of inflation and lower volume as discussed above.
|
||||||
Revenues
|
Profit
|
|||||
March 31, 2014
|
$
|
5.8
|
$
|
1.1
|
||
Volume
|
(0.3)
|
(0.1)
|
||||
Price
|
0.2
|
0.2
|
||||
Foreign Exchange
|
-
|
-
|
||||
(Inflation)/Deflation
|
N/A
|
(0.1)
|
||||
Mix
|
N/A
|
0.1
|
||||
Productivity
|
N/A
|
0.1
|
||||
Other
|
-
|
-
|
||||
March 31, 2015
|
$
|
5.7
|
$
|
1.3
|
||
2015 YTD SUB-SEGMENT REVENUES
|
EQUIPMENT/SERVICES REVENUES
|
|||
Services Equipment
|
||||
ORDERS
|
BACKLOG
|
|||
|
Equipment
Services
|
|
Equipment
Services
|
|
SEGMENT REVENUES & PROFIT
|
SEGMENT PROFIT MARGIN
|
|||||
¢ ¢ Revenues ¢ ¢ Profit
|
|
|||||
SEGMENT REVENUES & PROFIT WALK:
|
COMMENTARY: 2015 - 2014
|
|||||
Segment revenues down $0.1 billion or 3%;
Segment profit up 3% as a result of:
·The decrease in revenues was due to the impact of a stronger U.S. dollar and lower prices mainly in Healthcare Systems. These decreases were partially offset by higher volume, mainly driven by Life Sciences.
·The increase in profit was mainly due to higher cost productivity including SG&A cost reductions, partially offset by lower prices and the effects of inflation.
|
||||||
Revenues
|
Profit
|
|||||
March 31, 2014
|
$
|
4.2
|
$
|
0.6
|
||
Volume
|
0.2
|
-
|
||||
Price
|
(0.1)
|
(0.1)
|
||||
Foreign Exchange
|
(0.2)
|
-
|
||||
(Inflation)/Deflation
|
N/A
|
(0.1)
|
||||
Mix
|
N/A
|
-
|
||||
Productivity
|
N/A
|
0.1
|
||||
Other
|
-
|
-
|
||||
March 31, 2015
|
$
|
4.1
|
$
|
0.6
|
||
2015 YTD SUB-SEGMENT REVENUES
|
EQUIPMENT/SERVICES REVENUES
|
|||
(a) Includes Marine, Stationary & Drilling
|
Services Equipment
|
|||
ORDERS
|
BACKLOG
|
|||
|
Equipment
Services
|
|
Equipment
Services
|
|
UNIT SALES
|
SEGMENT REVENUES & PROFIT
|
SEGMENT PROFIT MARGIN
|
|
¢ ¢ Revenues ¢ ¢ Profit
|
||
COMMENTARY: 2015 - 2014
|
||
Segment revenues up $0.1 billion or 7% as a result of:
|
||
·Higher volume ($0.1 billion), primarily due to higher locomotive equipment sales, partially offset by lower volume of services sales.
|
·
|
Higher other income and higher cost productivity.
|
2015 YTD SUB-SEGMENT REVENUES
|
|||||
FINANCIAL OVERVIEW
(Dollar in billions)
|
|||||
SEGMENT REVENUES & PROFIT
|
SEGMENT PROFIT MARGIN
|
||||
¢ ¢ Revenues ¢ ¢ Profit
|
|||||
COMMENTARY: 2015 - 2014
|
|||||
Segment revenues up 5% as a result of:
·Higher volume ($0.1 billion), driven by higher sales at Appliances, were partially offset by lower prices and the effects of a stronger U.S. dollar.
Segment profit up 94% as a result of:
·Improved cost productivity ($0.1 billion) including the effects of classifying Appliances as a business held for sale in the third quarter of 2014, was partially offset by lower prices.
|
2015 YTD SUB-SEGMENT REVENUES
|
NET INTEREST MARGIN
|
||
ENDING NET INVESTMENT, EXCLUDING LIQUIDITY*
|
TIER 1 COMMON RATIO ESTIMATE*
|
||
|
|
||
SIGNIFICANT TRENDS & DEVELOPMENTS
|
·
|
The GE Capital Exit Plan - As previously discussed, the Company announced a plan to reduce the size of the financial services businesses through the sale of most of the assets of GECC over the next 24 months. It is expected that as a result of the GE Capital Exit Plan, the GE Capital businesses that will remain with GE will account for about $90 billion in ending net investment (ENI), excluding liquidity, including about $40 billion in the U.S. ENI is a metric used to measure the total capital invested in the financial services businesses. GE Capital's ENI, excluding liquidity, at March 31, 2015 was $303 billion.
|
·
|
Australia and New Zealand (ANZ) Consumer Lending - During the first quarter of 2015, we signed an agreement to sell our consumer finance business in Australia and New Zealand to a consortium including KKR, Varde Partners and Deutsche Bank for approximately 6.8 billion Australian dollars and 1.4 billion New Zealand dollars.
|
·
|
Milestone Aviation Group – On January 30, 2015, GECAS acquired Milestone Aviation Group, a helicopter leasing business, for approximately $1.8 billion.
|
·
|
Synchrony Financial – In connection with Synchrony Financial's planned separation from GE, Synchrony Financial filed the related application to the Federal Reserve Board on April 30, 2015. For a further discussion of the Synchrony Financial transaction, see the Synchrony Financial annual report on Form 10-K for the year ended December 31, 2014 and the quarterly report on Form 10-Q for the three months ended March 31, 2015.
|
·
|
Dividends - GECC paid quarterly dividends of $0.5 billion to GE in the three months ended March 31, 2015.
|
SEGMENT REVENUES & PROFIT (LOSS)(a)
|
||
Q1 2014 Q1 2015(b)
¢ ¢ Revenue ¢ ¢ Profit (Loss)
|
(a) Interest and other financial charges and income taxes are included in determining segment profit (loss) for the GE Capital segment.
(b) 1Q 2015 revenues included $3.2 billion and operating profit included $13.8 billion (after-tax) of charges related to the GE Capital Exit Plan.
|
|
COMMENTARY: 2015 - 2014
|
CORPORATE ITEMS AND ELIMINATIONS
|
||||||
REVENUES AND OPERATING PROFIT (COST)
|
||||||
Three months ended March 31
|
||||||
(In millions)
|
2015
|
2014
|
||||
Revenues
|
||||||
Total Corporate Items and Eliminations
|
$
|
(986)
|
$
|
(886)
|
||
Operating profit (cost)
|
||||||
Principal retirement plans(a)
|
$
|
(789)
|
$
|
(581)
|
||
Restructuring and other charges
|
(422)
|
(376)
|
||||
Eliminations and other
|
(481)
|
(585)
|
||||
Total Corporate Items and Eliminations
|
$
|
(1,692)
|
$
|
(1,542)
|
||
CORPORATE COSTS
|
||||||
Three months ended March 31
|
||||||
(In millions)
|
2015
|
2014
|
||||
Total Corporate Items and Eliminations
|
$
|
(1,692)
|
$
|
(1,542)
|
||
Less non-operating pension cost
|
(695)
|
(526)
|
||||
Total Corporate costs (operating)*
|
$
|
(997)
|
$
|
(1,016)
|
||
Less restructuring and other charges
|
(422)
|
(376)
|
||||
Adjusted total corporate costs (operating)*
|
$
|
(575)
|
$
|
(640)
|
||
(a)
|
Included non-operating pension cost* of $0.7 billion and $0.5 billion in the three months ended March 31, 2015 and 2014, respectively, which includes expected return on plan assets, interest costs and non-cash amortization of actuarial gains and losses.
|
·
|
A fair value adjustment on a senior unsecured note receivable from a customer.
|
·
|
Higher costs associated with our principal retirement plans including the effects of updated mortality assumptions.
|
COSTS
|
|||||
Three months ended March 31
|
|||||
(In billions)
|
2015
|
2014
|
|||
Power & Water
|
$
|
0.1
|
$
|
0.1
|
|
Oil & Gas
|
0.1
|
0.1
|
|||
Energy Management
|
0.1
|
0.1
|
|||
Aviation
|
-
|
0.1
|
|||
Healthcare
|
-
|
0.1
|
|||
Transportation
|
-
|
-
|
|||
Appliances & Lighting
|
-
|
-
|
|||
Total
|
$
|
0.4
|
$
|
0.4
|
|
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS
|
|||||
Three months ended March 31
|
|||||
(In millions)
|
2015
|
2014
|
|||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(2,202)
|
$
|
252
|
|
·
|
$2.3 billion after-tax loss at our Real Estate business (including a $2.4 billion loss on the planned disposal).
|
·
|
$0.2 billion after-tax earnings at our Real Estate business.
|
PROVISION FOR INCOME TAXES
|
|||
·
|
The consolidated income tax rate (negative 130.5%) for the first quarter 2015 is not meaningful. The negative consolidated tax rate is caused by comparing the positive tax expense of $6.5 billion with the pre-tax loss of $4.9 billion resulting in a negative tax rate.
|
·
|
As discussed in Note 10, during the first quarter of 2015 in conjunction with the GE Capital Exit Plan, we incurred tax expense of $6.0 billion related to expected repatriation of foreign earnings and write-off of deferred tax assets.
|
·
|
The increase in the income tax expense from $0.6 billion for the first quarter of 2014 to $6.5 billion for the first quarter of 2015 is due to the tax expense incurred as part of the GE Capital Exit Plan.
|
·
|
The consolidated tax provision includes $0.3 billion for GE (excluding GECC) for both the first quarters of 2014 and 2015.
|
·
|
GECC Financing receivables-net decreased $139.3 billion. See the following Financing Receivables section for additional information.
|
·
|
GECC Financing receivables held for sale increased $91.1 billion. See the following Financing Receivables Held for Sale section for additional information.
|
·
|
Assets of businesses held for sale increased $50.2 billion, primarily as a result of the GE Capital Exit Plan, decreasing balances of our major asset categories, including: Investment securities; Financing receivables; Property, plant and equipment and Goodwill.
|
·
|
Borrowings decreased $13.0 billion. GECC had net repayments on borrowings of $3.9 billion, along with a $10.1 billion reduction in the balances driven by the strengthening of the U.S. dollar against all major currencies.
|
·
|
Accumulated other comprehensive income (loss) – currency translation adjustments decreased $5.3 billion driven by the strengthening U.S. dollar against all major currencies at March 31, 2015 compared with December 31, 2014. This decrease coincides with general decreases in balances of our major asset and liability categories, including: Financing receivables; Property, plant and equipment; Goodwill; Short-term borrowings and Long-term borrowings.
|
FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES(a)
|
||||||||||||
(Dollars in millions)
|
March 31, 2015
|
December 31, 2014
|
||||||||||
Financing receivables
|
$
|
81,413
|
$
|
222,296
|
||||||||
Nonaccrual receivables
|
345
|
(b)
|
3,971
|
|||||||||
Allowance for losses
|
3,349
|
4,914
|
||||||||||
Nonaccrual financing receivables as a percent of financing receivables
|
0.4
|
%
|
1.8
|
%
|
||||||||
Allowance for losses as a percent of nonaccrual financing receivables
|
(c)
|
123.8
|
||||||||||
Allowance for losses as a percent of total financing receivables
|
4.1
|
2.2
|
||||||||||
(a)
|
For additional information related to the portfolio of financing receivables, refer to the GECC quarterly report on Form 10-Q for the three months ended March 31, 2015.
|
(b)
|
Substantially all of our $0.3 billion of nonaccrual loans at March 31, 2015, are currently paying in accordance with the contractual terms. We continue to accrue interest on consumer credit cards until the accounts are written off in the period the account becomes 180 days past due.
|
(c)
|
Not meaningful.
|
CONSOLIDATED CASH AND EQUIVALENTS
|
|||||||
(In billions)
|
March 31, 2015
|
March 31, 2015
|
|||||
GE(a)
|
$
|
13.5
|
U.S.
|
$
|
34.8
|
||
GECC(b)
|
73.6
|
Non-U.S.(c)
|
52.3
|
||||
Total
|
$
|
87.1
|
Total
|
$
|
87.1
|
||
(a)
|
At March 31, 2015, $2.9 billion of GE cash and equivalents was held in countries with currency controls that may restrict the transfer of funds to the U.S. or limit our ability to transfer funds to the U.S. without incurring substantial costs. These funds are available to fund operations and growth in these countries and we do not currently anticipate a need to transfer these funds to the U.S.
|
(b)
|
At March 31, 2015, GECC cash and equivalents of about $18.6 billion were in regulated banks and insurance entities and were subject to regulatory restrictions.
|
(c)
|
Of this amount at March 31, 2015, $6.4 billion was considered indefinitely reinvested. Indefinitely reinvested cash held outside of the U.S. is available to fund operations and other growth of non-U.S. subsidiaries; it is also available to fund our needs in the U.S. on a short-term basis through short-term loans, without being subject to U.S. tax. Under the Internal Revenue Code, these loans are permitted to be outstanding for 30 days or less and the total of all such loans is required to be outstanding for less than 60 days during the year. If we were to repatriate indefinitely reinvested cash held outside the U.S., we would be subject to additional U.S. income taxes and foreign withholding taxes.
|
COMMITTED UNUSED CREDIT LINES
|
||
(In billions)
|
March 31, 2015
|
|
Revolving credit agreements (exceeding one year)
|
$
|
25.1
|
Revolving credit agreements (364-day line)(a)
|
20.8
|
|
Total(b)
|
$
|
45.9
|
(a)
|
Included $20.3 billion that contains a term-out feature that allows us to extend borrowings for two years from the date on which such borrowings would otherwise be due.
|
(b)
|
Total committed unused credit lines were extended to us by 50 financial institutions. GECC can borrow up to $45.4 billion under these credit lines. GE can borrow up to $14.8 billion under certain of these credit lines.
|
COMMERCIAL PAPER
|
|||||
(In billions)
|
GE
|
GECC
|
|||
Average commercial paper borrowings during the first quarter of 2015
|
$
|
6.9
|
$
|
25.1
|
|
Maximum commercial paper borrowings outstanding during the first quarter of 2015
|
10.8
|
25.2
|
|||
ALTERNATIVE FUNDING
|
|||
(In billions)
|
|||
Total alternative funding at December 31, 2014
|
$
|
117.3
|
|
Total alternative funding at March 31, 2015
|
112.9
|
||
Bank deposits
|
62.7
|
||
Non-recourse securitization borrowings
|
29.0
|
||
Funding secured by real estate, aircraft and other collateral
|
5.6
|
||
GE Interest Plus notes (including $0.1 billion of current long-term debt)
|
5.5
|
||
Bank unsecured
|
10.1
|
||
OPERATING CASH FLOWS
|
INVESTING CASH FLOWS
|
FINANCING CASH FLOWS
|
||||||||
2014
|
2015
|
2014
|
2015
|
2014
|
2015
|
|||||
|
|
·
|
A decrease of operating cash collections of $0.5 billion to $25.1 billion in 2015. This decrease is consistent with comparable GE segment revenue decreases from sales of goods and services and lower progress collections. These decreases were partially offset by an increase in collections of current receivables.
|
·
|
This decrease is partially offset by lower operating cash payments of $0.2 billion to $24.2 billion in 2015 consistent with cost and expense decreases and decreased spend on inventory in first quarter of 2015 compared with that of 2014.
|
·
|
Further, GECC paid quarterly dividends totaling $0.5 billion to GE in both the three months ended March 31, 2015 and 2014.
|
·
|
Lower business acquisition activity of $1.4 billion primarily driven by the 2014 acquisitions of certain Thermo Fisher Scientific Inc. life-science businesses for $1.1 billion and API Healthcare (API) for $0.3 billion.
|
·
|
The 2014 issuance of $3.0 billion of unsecured notes.
|
·
|
This is partially offset by a decrease in net repurchases of GE shares for treasury in accordance with our share repurchase program of $1.6 billion.
|
·
|
Further, net payments in borrowings (maturities of 90 day or less) decreased by $0.5 billion.
|
OPERATING CASH FLOWS
|
INVESTING CASH FLOWS
|
FINANCING CASH FLOWS
|
||||||||
2014
|
2015
|
2014
|
2015
|
2014
|
2015
|
|||||
·
|
A decrease in net cash collateral activity with counterparties on derivative contracts of $0.4 billion.
|
·
|
A net increase in financing receivables activity of $1.8 billion driven by higher net collections (which includes sales) of financing receivables.
|
·
|
The 2014 payment of our obligation to the buyer of GE Money Japan for $1.7 billion.
|
·
|
These increases were partially offset by the 2015 acquisition of Milestone Aviation Group, resulting in net cash paid of $1.7 billion.
|
·
|
Lower net repayments of borrowings of $2.7 billion driven primarily by issuances of senior unsecured notes.
|
Rest of
|
Total
|
||||||||||||||||||||||
March 31, 2015 (In millions)
|
Spain
|
Portugal
|
Ireland
|
Italy
|
Greece
|
Hungary
|
Europe
|
Europe
|
|||||||||||||||
Financing receivables, net(a)(d)(j)
|
$
|
426
|
$
|
91
|
$
|
271
|
$
|
1,451
|
$
|
2
|
$
|
2,169
|
$
|
7,638
|
$
|
12,048
|
|||||||
Financing receivables held for sale
|
593
|
89
|
46
|
3,281
|
-
|
7
|
38,737
|
42,753
|
|||||||||||||||
Investments(b)(c)
|
2
|
-
|
-
|
65
|
-
|
-
|
1,327
|
1,394
|
|||||||||||||||
Cost and equity method investments(d)
|
-
|
-
|
422
|
49
|
27
|
-
|
1,570
|
2,068
|
|||||||||||||||
Derivatives, net of collateral(b)(e)
|
2
|
-
|
-
|
49
|
-
|
-
|
391
|
442
|
|||||||||||||||
Equipment leased to others (ELTO)(f)(j)
|
468
|
198
|
496
|
668
|
252
|
228
|
10,044
|
12,354
|
|||||||||||||||
Total funded exposures(g)(h)
|
$
|
1,491
|
$
|
378
|
$
|
1,235
|
$
|
5,563
|
$
|
281
|
$
|
2,404
|
$
|
59,707
|
$
|
71,059
|
|||||||
Unfunded commitments(i)
|
$
|
56
|
$
|
8
|
$
|
96
|
$
|
184
|
$
|
4
|
$
|
660
|
$
|
3,844
|
$
|
4,852
|
|||||||
(a)
|
Financing receivable amounts are classified based on the location or nature of the related obligor.
|
(b)
|
Investments and derivatives are classified based on the location of the parent of the obligor or issuer.
|
(c)
|
Included $0.2 billion related to financial institutions, $0.1 billion related to non-financial institutions and $1.0 billion related to sovereign issuers. Sovereign issuances totaled $0.1 billion related to Italy. We held no investments issued by sovereign entities in the other focus countries.
|
(d)
|
Substantially all is non-sovereign.
|
(e)
|
Net of cash collateral; entire amount is non-sovereign.
|
(f)
|
These assets are held under long-term investment and operating strategies, and our ELTO strategies contemplate an ability to redeploy assets under lease should default by the lessee occur. The values of these assets could be subject to decline or impairment in the current environment.
|
(g)
|
Excluded $28.1 billion of cash and equivalents, which is composed of $19.4 billion of cash on short-term placement with highly rated global financial institutions based in Europe, sovereign central banks and agencies or supranational entities, of which $0.7 billion is in focus countries, and $8.7 billion of cash and equivalents placed with highly rated European financial institutions on a short-term basis, secured by U.S. Treasury securities ($5.8 billion) and sovereign bonds of non-focus countries ($3.0 billion), where the value of our collateral exceeds the amount of our cash exposure.
|
(h)
|
Rest of Europe included $1.8 billion and $0.1 billion of exposure for Russia and Ukraine, respectively, substantially all ELTO and financing receivables related to commercial aircraft in our GECAS portfolio.
|
(i)
|
Includes ordinary course of business lending commitments, commercial and consumer unused revolving credit lines, inventory financing arrangements and investment commitments.
|
(j)
|
Includes financing receivables of $6.2 billion and ELTO of $2.2 billion classified as assets of businesses held for sale.
|
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS | ||||||||||
Approximate
|
||||||||||
dollar value
|
||||||||||
Total number
|
of shares that
|
|||||||||
of shares
|
may yet be
|
|||||||||
purchased
|
purchased
|
|||||||||
as part of
|
under our
|
|||||||||
Total number
|
Average
|
our share
|
share
|
|||||||
of shares
|
price paid
|
repurchase
|
repurchase
|
|||||||
Period
|
purchased(a)
|
per share
|
program(b)
|
program(b)
|
||||||
(Shares in thousands)
|
||||||||||
2015
|
||||||||||
January
|
673
|
$
|
24.19
|
619
|
||||||
February
|
726
|
$
|
24.88
|
662
|
||||||
March
|
973
|
$
|
25.35
|
891
|
||||||
Total
|
2,372
|
$
|
24.88
|
2,172
|
$
|
10.3
|
billion
|
|||
(a) | This category included 200 thousand shares repurchased from our various benefit plans. |
(b) | Shares were repurchased through the 2007 GE Share Repurchase Program (the 2007 Program). As of March 31, 2015, we were authorized to repurchase up to $35 billion of our common stock through 2015 and we had repurchased a total of approximately $24.7 billion under the 2007 Program. Effective April 10, 2015, the 2007 Program was terminated and replaced by a new 2015 GE Share Repurchase Program (the 2015 Program) under which we are authorized to repurchase up to $50 billion of our common stock through 2018. The 2015 Program is flexible and shares will be acquired with a combination of borrowings and free cash flow from the public markets and other sources, including GE Stock Direct, a stock purchase plan that is available to the public. |
Statement of Earnings (Loss)
|
50
|
|||
Consolidated Statement of Comprehensive Income (Loss)
|
52
|
|||
Consolidated Statement of Changes in Shareowners' Equity
|
53
|
|||
Statement of Financial Position
|
54
|
|||
Statement of Cash Flows
|
56
|
|||
Notes to Consolidated Financial Statements
|
||||
1
|
Basis of Presentation and Summary of Significant Accounting Policies
|
58
|
||
2
|
Businesses Held for Sale, Financing Receivables Held for Sale and Discontinued Operations
|
60
|
||
3
|
Investment Securities
|
65
|
||
4
|
Inventories
|
69
|
||
5
|
GECC Financing Receivables and Allowance for Losses
|
69
|
||
6
|
Property, Plant and Equipment
|
70
|
||
7
|
Acquisitions, Goodwill and Other Intangible Assets
|
71
|
||
8
|
Borrowings and Bank Deposits
|
74
|
||
9
|
Postretirement Benefit Plans
|
75
|
||
10
|
Income Taxes
|
76
|
||
11
|
Shareowners' Equity
|
77
|
||
12
|
GECC Revenues from Services
|
79
|
||
13
|
Earnings Per Share Information
|
80
|
||
14
|
Fair Value Measurements
|
80
|
||
15
|
Financial Instruments
|
85
|
||
16
|
Variable Interest Entities
|
90
|
||
17
|
Intercompany Transactions
|
93
|
||
18
|
Supplemental Information About the Credit Quality of Financing Receivables and Allowance for Losses
|
94
|
||
STATEMENT OF EARNINGS (LOSS)
|
|||||
(UNAUDITED)
|
|||||
Three months ended March 31
|
|||||
General Electric Company
|
|||||
and consolidated affiliates
|
|||||
(In millions; per-share amounts in dollars)
|
2015
|
2014
|
|||
Revenues and other income
|
|||||
Sales of goods
|
$
|
16,600
|
$
|
16,941
|
|
Sales of services
|
7,084
|
6,909
|
|||
Other income
|
142
|
196
|
|||
GECC earnings from continuing operations
|
-
|
-
|
|||
GECC revenues from services (Note 12)
|
5,530
|
9,502
|
|||
Total revenues and other income
|
29,356
|
33,548
|
|||
Costs and expenses
|
|||||
Cost of goods sold
|
13,261
|
13,713
|
|||
Cost of services sold
|
4,905
|
4,809
|
|||
Interest and other financial charges
|
1,930
|
2,141
|
|||
Investment contracts, insurance losses and
|
|||||
insurance annuity benefits
|
616
|
620
|
|||
Provision for losses on financing receivables (Note 5)
|
4,859
|
984
|
|||
Other costs and expenses
|
8,733
|
7,962
|
|||
Total costs and expenses
|
34,304
|
30,229
|
|||
Earnings (loss) from continuing operations
|
|||||
before income taxes
|
(4,948)
|
3,319
|
|||
Benefit (provision) for income taxes
|
(6,458)
|
(619)
|
|||
Earnings (loss) from continuing operations
|
(11,406)
|
2,700
|
|||
Earnings (loss) from discontinued operations,
|
|||||
net of taxes (Note 2)
|
(2,202)
|
252
|
|||
Net earnings (loss)
|
(13,608)
|
2,952
|
|||
Less net earnings (loss) attributable to noncontrolling interests
|
(35)
|
(47)
|
|||
Net earnings (loss) attributable to the Company
|
(13,573)
|
2,999
|
|||
Net earnings (loss) attributable to GE common shareowners
|
$
|
(13,573)
|
$
|
2,999
|
|
Amounts attributable to GE common shareowners
|
|||||
Earnings (loss) from continuing operations
|
$
|
(11,406)
|
$
|
2,700
|
|
Less net earnings (loss) attributable to
|
|||||
noncontrolling interests
|
(35)
|
(47)
|
|||
Earnings (loss) from continuing operations attributable to the Company
|
(11,371)
|
2,747
|
|||
Earnings (loss) from continuing operations attributable
|
|||||
to GE common shareowners
|
(11,371)
|
2,747
|
|||
Earnings (loss) from discontinued operations, net of taxes
|
(2,202)
|
252
|
|||
Net earnings (loss) attributable to GE common shareowners
|
$
|
(13,573)
|
$
|
2,999
|
|
Per-share amounts
|
|||||
Earnings (loss) from continuing operations
|
|||||
Diluted earnings (loss) per share
|
$
|
(1.13)
|
$
|
0.27
|
|
Basic earnings (loss) per share
|
$
|
(1.13)
|
$
|
0.27
|
|
Net earnings (loss)
|
|||||
Diluted earnings (loss) per share
|
$
|
(1.35)
|
$
|
0.30
|
|
Basic earnings (loss) per share
|
$
|
(1.35)
|
$
|
0.30
|
|
Dividends declared per common share
|
$
|
0.23
|
$
|
0.22
|
|
STATEMENT OF EARNINGS (LOSS) (CONTINUED)
|
|||||||||||
(UNAUDITED)
|
|||||||||||
Three months ended March 31
|
|||||||||||
GE(a)
|
Financial Services (GECC)
|
||||||||||
(In millions; per-share amounts in dollars)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Revenues and other income
|
|||||||||||
Sales of goods
|
$
|
16,648
|
$
|
16,988
|
$
|
21
|
$
|
27
|
|||
Sales of services
|
7,192
|
7,023
|
-
|
-
|
|||||||
Other income
|
52
|
161
|
-
|
-
|
|||||||
GECC earnings (loss) from continuing operations
|
(12,544)
|
1,693
|
-
|
-
|
|||||||
GECC revenues from services (Note 12)
|
-
|
-
|
5,961
|
9,858
|
|||||||
Total revenues and other income
|
11,348
|
25,865
|
5,982
|
9,885
|
|||||||
Costs and expenses
|
|||||||||||
Cost of goods sold
|
13,312
|
13,762
|
18
|
25
|
|||||||
Cost of services sold
|
5,013
|
4,923
|
-
|
-
|
|||||||
Interest and other financial charges
|
389
|
365
|
1,651
|
1,887
|
|||||||
Investment contracts, insurance losses and
|
|||||||||||
insurance annuity benefits
|
-
|
-
|
644
|
643
|
|||||||
Provision for losses on financing receivables(Note 5)
|
-
|
-
|
4,859
|
984
|
|||||||
Other costs and expenses
|
3,825
|
3,808
|
5,111
|
4,341
|
|||||||
Total costs and expenses
|
22,539
|
22,858
|
12,283
|
7,880
|
|||||||
Earnings (loss) from continuing operations
|
|||||||||||
before income taxes
|
(11,191)
|
3,007
|
(6,301)
|
2,005
|
|||||||
Benefit (provision) for income taxes
|
(306)
|
(318)
|
(6,152)
|
(301)
|
|||||||
Earnings (loss) from continuing operations
|
(11,497)
|
2,689
|
(12,453)
|
1,704
|
|||||||
Earnings (loss) from discontinued operations,
|
|||||||||||
net of taxes (Note 2)
|
(2,202)
|
252
|
(2,201)
|
252
|
|||||||
Net earnings (loss)
|
(13,699)
|
2,941
|
(14,654)
|
1,956
|
|||||||
Less net earnings (loss) attributable to noncontrolling interests
|
(126)
|
(58)
|
91
|
11
|
|||||||
Net earnings (loss) attributable to the Company
|
(13,573)
|
2,999
|
(14,745)
|
1,945
|
|||||||
Net earnings (loss) attributable to GE common shareowners
|
$
|
(13,573)
|
$
|
2,999
|
$
|
(14,745)
|
$
|
1,945
|
|||
Amounts attributable to GE common shareowners:
|
|||||||||||
Earnings (loss) from continuing operations
|
$
|
(11,497)
|
$
|
2,689
|
$
|
(12,453)
|
$
|
1,704
|
|||
Less net earnings (loss) attributable to
|
|||||||||||
noncontrolling interests
|
(126)
|
(58)
|
91
|
11
|
|||||||
Earnings (loss) from continuing operations attributable to the Company
|
(11,371)
|
2,747
|
(12,544)
|
1,693
|
|||||||
Earnings (loss) from continuing operations attributable
|
|||||||||||
to GE common shareowners
|
(11,371)
|
2,747
|
(12,544)
|
1,693
|
|||||||
Earnings (loss) from discontinued operations, net of taxes
|
(2,202)
|
252
|
(2,201)
|
252
|
|||||||
Net earnings (loss) attributable to GE common shareowners
|
$
|
(13,573)
|
$
|
2,999
|
$
|
(14,745)
|
$
|
1,945
|
|||
(a)
|
Represents the adding together of all affiliated companies except General Electric Capital Corporation (GECC or Financial Services), which is presented on a one-line basis. See Note 1.
|
GENERAL ELECTRIC COMPANY AND CONSOLIDATED AFFILIATES
|
|||||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
|
|||||
(UNAUDITED)
|
|||||
Three months ended March 31
|
|||||
(In millions)
|
2015
|
2014
|
|||
Net earnings (loss)
|
$
|
(13,608)
|
$
|
2,952
|
|
Less net earnings (loss) attributable to noncontrolling interests
|
(35)
|
(47)
|
|||
Net earnings (loss) attributable to the Company
|
$
|
(13,573)
|
$
|
2,999
|
|
Other comprehensive income (loss)
|
|||||
Investment securities
|
$
|
233
|
$
|
457
|
|
Currency translation adjustments
|
(5,336)
|
49
|
|||
Cash flow hedges
|
(46)
|
68
|
|||
Benefit plans
|
909
|
695
|
|||
Other comprehensive income (loss)
|
(4,240)
|
1,269
|
|||
Less other comprehensive income (loss) attributable to noncontrolling interests
|
(48)
|
(2)
|
|||
Other comprehensive income (loss) attributable to the Company
|
$
|
(4,192)
|
$
|
1,271
|
|
Comprehensive income (loss)
|
$
|
(17,848)
|
$
|
4,221
|
|
Less comprehensive income (loss) attributable to noncontrolling interests
|
(83)
|
(49)
|
|||
Comprehensive income (loss) attributable to the Company
|
$
|
(17,765)
|
$
|
4,270
|
|
GENERAL ELECTRIC COMPANY AND CONSOLIDATED AFFILIATES
|
|||||
CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS' EQUITY
|
|||||
(UNAUDITED)
|
|||||
Three months ended March 31
|
|||||
(In millions)
|
2015
|
2014
|
|||
Shareowners' equity balance at January 1
|
$
|
128,159
|
$
|
130,566
|
|
Increases (decreases) from net earnings (loss) attributable to the Company
|
(13,573)
|
2,999
|
|||
Dividends and other transactions with shareowners
|
(2,319)
|
(2,210)
|
|||
Other comprehensive income (loss) attributable to the Company
|
(4,192)
|
1,271
|
|||
Net sales (purchases) of shares for treasury
|
499
|
(840)
|
|||
Changes in other capital
|
(14)
|
50
|
|||
Ending balance at March 31
|
108,560
|
131,836
|
|||
Noncontrolling interests
|
8,738
|
6,183
|
|||
Total equity balance at March 31
|
$
|
117,298
|
$
|
138,019
|
|
STATEMENT OF FINANCIAL POSITION
|
|||||
General Electric Company
|
|||||
and consolidated affiliates
|
|||||
(In millions, except share amounts)
|
March 31, 2015
|
December 31, 2014
|
|||
(Unaudited)
|
|||||
Assets
|
|||||
Cash and equivalents
|
$
|
87,055
|
$
|
90,021
|
|
Investment securities (Note 3)
|
41,992
|
47,558
|
|||
Current receivables
|
20,547
|
23,237
|
|||
Inventories (Note 4)
|
17,830
|
17,689
|
|||
Financing receivables – net (Note 5 and 18)
|
68,040
|
205,180
|
|||
Other GECC receivables
|
6,814
|
8,690
|
|||
Property, plant and equipment – net (Note 6)
|
61,219
|
66,246
|
|||
Investment in GECC
|
-
|
-
|
|||
Goodwill (Note 7)
|
69,604
|
76,016
|
|||
Other intangible assets – net (Note 7)
|
13,533
|
14,047
|
|||
All other assets
|
50,228
|
53,388
|
|||
Financing receivables held for sale (Note 2)
|
92,959
|
1,830
|
|||
Assets of businesses held for sale (Note 2)
|
56,549
|
6,300
|
|||
Assets of discontinued operations (Note 2)
|
31,261
|
36,795
|
|||
Total assets(a)
|
$
|
617,631
|
$
|
646,997
|
|
Liabilities and equity
|
|||||
Short-term borrowings (Note 8)
|
$
|
69,211
|
$
|
71,525
|
|
Accounts payable, principally trade accounts
|
14,392
|
15,793
|
|||
Progress collections and price adjustments accrued
|
11,498
|
12,537
|
|||
Dividends payable
|
2,315
|
2,317
|
|||
Other GE current liabilities
|
12,393
|
12,682
|
|||
Non-recourse borrowings of consolidated securitization entities (Note 8)
|
29,035
|
29,938
|
|||
Bank deposits (Note 8)
|
62,691
|
62,839
|
|||
Long-term borrowings (Note 8)
|
190,420
|
200,172
|
|||
Investment contracts, insurance liabilities and insurance annuity benefits
|
27,622
|
27,578
|
|||
All other liabilities
|
68,414
|
70,485
|
|||
Deferred income taxes
|
2,901
|
(1,353)
|
|||
Liabilities of businesses held for sale (Note 2)
|
7,368
|
3,375
|
|||
Liabilities of discontinued operations (Note 2)
|
2,073
|
2,276
|
|||
Total liabilities(a)
|
500,333
|
510,164
|
|||
GECC preferred stock (50,000 shares outstanding
|
|||||
at both March 31, 2015 and December 31, 2014)
|
-
|
-
|
|||
Common stock (10,075,929,000 and 10,057,380,000 shares outstanding
|
|||||
at both March 31, 2015 and December 31, 2014, respectively)
|
702
|
702
|
|||
Accumulated other comprehensive income (loss) – net attributable to GE(b)
|
|||||
Investment securities
|
1,245
|
1,013
|
|||
Currency translation adjustments
|
(7,716)
|
(2,427)
|
|||
Cash flow hedges
|
(226)
|
(180)
|
|||
Benefit plans
|
(15,667)
|
(16,578)
|
|||
Other capital
|
32,875
|
32,889
|
|||
Retained earnings
|
139,441
|
155,333
|
|||
Less common stock held in treasury
|
(42,094)
|
(42,593)
|
|||
Total GE shareowners' equity
|
108,560
|
128,159
|
|||
Noncontrolling interests(c) (Note 11)
|
8,738
|
8,674
|
|||
Total equity
|
117,298
|
136,833
|
|||
Total liabilities and equity
|
$
|
617,631
|
$
|
646,997
|
|
(a) | Our consolidated assets at March 31, 2015 included total assets of $48,076 million of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs. These assets included net financing receivables of $27,831 million, financing receivables held for sale of $14,171 million and investment securities of $3,290 million. Our consolidated liabilities at March 31, 2015 included liabilities of certain VIEs for which the VIE creditors do not have recourse to GE. These liabilities included non-recourse borrowings of consolidated securitization entities (CSEs) of $27,561 million. See Note 16. |
(b) | The sum of accumulated other comprehensive income (loss) (AOCI) attributable to the Company was $(22,364) million and $(18,172) million at March 31, 2015 and December 31, 2014, respectively. |
(c) | Included AOCI attributable to noncontrolling interests of $(243) million and $(194) million at March 31, 2015 and December 31, 2014, respectively. |
STATEMENT OF FINANCIAL POSITION (CONTINUED)
|
|||||||||||
GE(a)
|
Financial Services (GECC)
|
||||||||||
(In millions, except share amounts)
|
March 31, 2015
|
December 31, 2014
|
March 31, 2015
|
December 31, 2014
|
|||||||
(Unaudited)
|
(Unaudited)
|
||||||||||
Assets
|
|||||||||||
Cash and equivalents
|
$
|
13,423
|
$
|
15,916
|
$
|
73,632
|
$
|
74,105
|
|||
Investment securities (Note 3)
|
143
|
84
|
41,853
|
47,478
|
|||||||
Current receivables
|
10,783
|
11,513
|
-
|
-
|
|||||||
Inventories (Note 4)
|
17,781
|
17,639
|
49
|
50
|
|||||||
Financing receivables – net (Note 5 and 18)
|
-
|
-
|
78,064
|
217,382
|
|||||||
Other GECC receivables
|
-
|
-
|
14,149
|
16,278
|
|||||||
Property, plant and equipment – net (Note 6)
|
16,516
|
17,207
|
45,130
|
49,429
|
|||||||
Investment in GECC
|
65,762
|
82,549
|
-
|
-
|
|||||||
Goodwill (Note 7)
|
49,965
|
51,527
|
19,639
|
24,489
|
|||||||
Other intangible assets – net (Note 7)
|
12,420
|
12,984
|
1,116
|
1,067
|
|||||||
All other assets
|
25,473
|
24,680
|
25,019
|
29,038
|
|||||||
Financing receivables held for sale (Note 2)
|
-
|
-
|
92,959
|
1,830
|
|||||||
Assets of businesses held for sale (Note 2)
|
2,940
|
2,805
|
53,598
|
3,474
|
|||||||
Assets of discontinued operations (Note 2)
|
9
|
10
|
31,252
|
36,785
|
|||||||
Total assets
|
$
|
215,215
|
$
|
236,914
|
$
|
476,460
|
$
|
501,405
|
|||
Liabilities and equity
|
|||||||||||
Short-term borrowings (Note 8)
|
$
|
3,839
|
$
|
3,872
|
$
|
66,178
|
$
|
68,515
|
|||
Accounts payable, principally trade accounts
|
15,213
|
16,511
|
4,960
|
5,632
|
|||||||
Progress collections and price adjustments accrued
|
11,498
|
12,550
|
-
|
-
|
|||||||
Dividends payable
|
2,315
|
2,317
|
-
|
-
|
|||||||
Other GE current liabilities
|
12,391
|
12,681
|
-
|
-
|
|||||||
Non-recourse borrowings of consolidated securitization entities (Note 8)
|
-
|
-
|
29,035
|
29,938
|
|||||||
Bank deposits (Note 8)
|
-
|
-
|
62,691
|
62,839
|
|||||||
Long-term borrowings (Note 8)
|
12,419
|
12,468
|
178,037
|
187,749
|
|||||||
Investment contracts, insurance liabilities and insurance annuity benefits
|
-
|
-
|
28,222
|
28,027
|
|||||||
All other liabilities
|
54,670
|
54,662
|
14,292
|
16,315
|
|||||||
Deferred income taxes
|
(8,160)
|
(8,772)
|
11,061
|
7,419
|
|||||||
Liabilities of businesses held for sale (Note 2)
|
1,547
|
1,504
|
6,334
|
2,434
|
|||||||
Liabilities of discontinued operations (Note 2)
|
122
|
137
|
1,951
|
2,139
|
|||||||
Total liabilities
|
105,854
|
107,930
|
402,761
|
411,007
|
|||||||
GECC preferred stock (50,000 shares outstanding
|
-
|
-
|
-
|
-
|
|||||||
at both March 31, 2015 and December 31, 2014)
|
|||||||||||
Common stock (10,075,929,000 and 10,057,380,000 shares outstanding
|
|||||||||||
at both March 31, 2015 and December 31, 2014, respectively)
|
702
|
702
|
-
|
-
|
|||||||
Accumulated other comprehensive income (loss) - net attributable to GE
|
|||||||||||
Investment securities
|
1,245
|
1,013
|
1,207
|
1,010
|
|||||||
Currency translation adjustments
|
(7,716)
|
(2,427)
|
(2,653)
|
(838)
|
|||||||
Cash flow hedges
|
(226)
|
(180)
|
(162)
|
(172)
|
|||||||
Benefit plans
|
(15,667)
|
(16,578)
|
(567)
|
(577)
|
|||||||
Other capital
|
32,875
|
32,889
|
33,005
|
32,999
|
|||||||
Retained earnings
|
139,441
|
155,333
|
39,882
|
55,077
|
|||||||
Less common stock held in treasury
|
(42,094)
|
(42,593)
|
-
|
-
|
|||||||
Total GE shareowners' equity
|
108,560
|
128,159
|
70,712
|
87,499
|
|||||||
Noncontrolling interests (Note 11)
|
801
|
825
|
2,987
|
2,899
|
|||||||
Total equity
|
109,361
|
128,984
|
73,699
|
90,398
|
|||||||
Total liabilities and equity
|
$
|
215,215
|
$
|
236,914
|
$
|
476,460
|
$
|
501,405
|
|||
(a)
|
Represents the adding together of all affiliated companies except General Electric Capital Corporation (GECC or Financial Services), which is presented on a one-line basis. See Note 1.
|
STATEMENT OF CASH FLOWS
|
|||||
(UNAUDITED)
|
|||||
Three months ended March 31
|
|||||
General Electric Company
|
|||||
and consolidated affiliates
|
|||||
(In millions)
|
2015
|
2014
|
|||
Cash flows – operating activities
|
|||||
Net earnings (loss)
|
$
|
(13,608)
|
$
|
2,952
|
|
Less net earnings (loss) attributable to noncontrolling interests
|
(35)
|
(47)
|
|||
Net earnings (loss) attributable to the Company
|
(13,573)
|
2,999
|
|||
(Earnings) loss from discontinued operations
|
2,202
|
(252)
|
|||
Adjustments to reconcile net earnings (loss) attributable to the
|
|||||
Company to cash provided from operating activities
|
|||||
Depreciation and amortization of property,
|
|||||
plant and equipment
|
2,466
|
2,189
|
|||
(Earnings) loss from continuing operations retained by GECC
|
-
|
-
|
|||
Deferred income taxes
|
1,951
|
(2,029)
|
|||
Decrease (increase) in GE current receivables
|
2,601
|
482
|
|||
Decrease (increase) in inventories
|
(265)
|
(1,445)
|
|||
Increase (decrease) in accounts payable
|
312
|
971
|
|||
Increase (decrease) in GE progress collections
|
(1,000)
|
(334)
|
|||
Provision for losses on GECC financing receivables
|
4,859
|
984
|
|||
All other operating activities
|
5,453
|
1,044
|
|||
Cash from (used for) operating activities – continuing operations
|
5,006
|
4,609
|
|||
Cash from (used for) operating activities – discontinued operations
|
1,084
|
352
|
|||
Cash from (used for) operating activities
|
6,090
|
4,961
|
|||
Cash flows – investing activities
|
|||||
Additions to property, plant and equipment
|
(3,011)
|
(3,361)
|
|||
Dispositions of property, plant and equipment
|
1,108
|
1,264
|
|||
Net decrease (increase) in GECC financing receivables
|
4,345
|
3,488
|
|||
Proceeds from sale of discontinued operations
|
-
|
232
|
|||
Proceeds from principal business dispositions
|
22
|
20
|
|||
Net cash from (payments for) principal businesses purchased
|
(1,723)
|
(1,454)
|
|||
All other investing activities
|
3,979
|
1,850
|
|||
Cash from (used for) investing activities – continuing operations
|
4,720
|
2,039
|
|||
Cash from (used for) investing activities – discontinued operations
|
(881)
|
(247)
|
|||
Cash from (used for) investing activities
|
3,839
|
1,792
|
|||
Cash flows – financing activities
|
|||||
Net increase (decrease) in borrowings (maturities of
|
|||||
90 days or less)
|
238
|
(3,330)
|
|||
Net increase (decrease) in bank deposits
|
1,042
|
1,175
|
|||
Newly issued debt (maturities longer than 90 days)
|
12,038
|
8,775
|
|||
Repayments and other debt reductions (maturities longer than 90 days)
|
(19,114)
|
(11,524)
|
|||
Net dispositions (purchases) of GE shares for treasury
|
239
|
(1,337)
|
|||
Dividends paid to shareowners
|
(2,319)
|
(2,223)
|
|||
All other financing activities
|
(106)
|
66
|
|||
Cash from (used for) financing activities – continuing operations
|
(7,982)
|
(8,398)
|
|||
Cash from (used for) financing activities – discontinued operations
|
(264)
|
(103)
|
|||
Cash from (used for) financing activities
|
(8,246)
|
(8,501)
|
|||
Effect of currency exchange rate changes on cash and equivalents
|
(3,826)
|
73
|
|||
Increase (decrease) in cash and equivalents
|
(2,143)
|
(1,675)
|
|||
Cash and equivalents at beginning of year
|
91,017
|
88,787
|
|||
Cash and equivalents at March 31
|
88,874
|
87,112
|
|||
Less cash and equivalents of discontinued operations at March 31
|
259
|
378
|
|||
Cash and equivalents of continuing operations at March 31
|
$
|
88,615
|
$
|
86,734
|
|
STATEMENT OF CASH FLOWS (CONTINUED)
|
|||||||||||
(UNAUDITED)
|
|||||||||||
Three months ended March 31
|
|||||||||||
GE(a)
|
Financial Services (GECC)
|
||||||||||
(In millions)
|
2015
|
2014
|
2015
|
2014
|
|||||||
Cash flows – operating activities
|
|||||||||||
Net earnings (loss)
|
$
|
(13,699)
|
$
|
2,941
|
$
|
(14,654)
|
$
|
1,956
|
|||
Less net earnings (loss) attributable to noncontrolling interests
|
(126)
|
(58)
|
91
|
11
|
|||||||
Net earnings (loss) attributable to the Company
|
(13,573)
|
2,999
|
(14,745)
|
1,945
|
|||||||
(Earnings) loss from discontinued operations
|
2,202
|
(252)
|
2,201
|
(252)
|
|||||||
Adjustments to reconcile net earnings (loss) attributable to the
|
|||||||||||
Company to cash provided from operating activities
|
|||||||||||
Depreciation and amortization of property,
|
|||||||||||
plant and equipment
|
554
|
659
|
1,917
|
1,530
|
|||||||
(Earnings) loss from continuing operations retained by GECC(b)
|
12,994
|
(1,193)
|
-
|
-
|
|||||||
Deferred income taxes
|
(129)
|
(341)
|
2,080
|
(1,688)
|
|||||||
Decrease (increase) in GE current receivables
|
662
|
(143)
|
-
|
-
|
|||||||
Decrease (increase) in inventories
|
(262)
|
(1,453)
|
1
|
13
|
|||||||
Increase (decrease) in accounts payable
|
(452)
|
165
|
562
|
851
|
|||||||
Increase (decrease) in GE progress collections
|
(1,013)
|
(347)
|
-
|
-
|
|||||||
Provision for losses on GECC financing receivables
|
-
|
-
|
4,859
|
984
|
|||||||
All other operating activities
|
357
|
1,656
|
5,599
|
(580)
|
|||||||
Cash from (used for) operating activities – continuing operations
|
1,340
|
1,750
|
2,474
|
2,803
|
|||||||
Cash from (used for) operating activities – discontinued operations
|
(4)
|
-
|
1,088
|
352
|
|||||||
Cash from (used for) operating activities
|
1,336
|
1,750
|
3,562
|
3,155
|
|||||||
Cash flows – investing activities
|
|||||||||||
Additions to property, plant and equipment
|
(1,013)
|
(1,090)
|
(2,202)
|
(2,361)
|
|||||||
Dispositions of property, plant and equipment
|
139
|
72
|
948
|
1,192
|
|||||||
Net decrease (increase) in GECC financing receivables
|
-
|
-
|
6,096
|
4,302
|
|||||||
Proceeds from sale of discontinued operations
|
-
|
-
|
-
|
232
|
|||||||
Proceeds from principal business dispositions
|
22
|
20
|
-
|
-
|
|||||||
Net cash from (payments for) principal businesses purchased
|
(46)
|
(1,454)
|
(1,677)
|
-
|
|||||||
All other investing activities
|
(270)
|
9
|
4,548
|
2,847
|
|||||||
Cash from (used for) investing activities – continuing operations
|
(1,168)
|
(2,443)
|
7,713
|
6,212
|
|||||||
Cash from (used for) investing activities – discontinued operations
|
4
|
-
|
(885)
|
(247)
|
|||||||
Cash from (used for) investing activities
|
(1,164)
|
(2,443)
|
6,828
|
5,965
|
|||||||
Cash flows – financing activities
|
|||||||||||
Net increase (decrease) in borrowings (maturities of
|
|||||||||||
90 days or less)
|
(232)
|
(756)
|
287
|
(3,750)
|
|||||||
Net increase (decrease) in bank deposits
|
-
|
-
|
1,042
|
1,175
|
|||||||
Newly issued debt (maturities longer than 90 days)
|
93
|
3,034
|
11,945
|
5,743
|
|||||||
Repayments and other debt reductions (maturities longer than 90 days)
|
(94)
|
(35)
|
(19,020)
|
(11,489)
|
|||||||
Net dispositions (purchases) of GE shares for treasury
|
239
|
(1,337)
|
-
|
-
|
|||||||
Dividends paid to shareowners
|
(2,319)
|
(2,223)
|
(450)
|
(500)
|
|||||||
All other financing activities
|
177
|
37
|
(283)
|
29
|
|||||||
Cash from (used for) financing activities – continuing operations
|
(2,136)
|
(1,280)
|
(6,479)
|
(8,792)
|
|||||||
Cash from (used for) financing activities – discontinued operations
|
-
|
-
|
(264)
|
(103)
|
|||||||
Cash from (used for) financing activities
|
(2,136)
|
(1,280)
|
(6,743)
|
(8,895)
|
|||||||
Effect of currency exchange rate changes on cash and equivalents
|
(529)
|
(19)
|
(3,297)
|
92
|
|||||||
Increase (decrease) in cash and equivalents
|
(2,493)
|
(1,992)
|
350
|
317
|
|||||||
Cash and equivalents at beginning of year
|
15,916
|
13,682
|
75,101
|
75,105
|
|||||||
Cash and equivalents at March 31
|
13,423
|
11,690
|
75,451
|
75,422
|
|||||||
Less cash and equivalents of discontinued operations at March 31
|
-
|
-
|
259
|
378
|
|||||||
Cash and equivalents of continuing operations at March 31
|
$
|
13,423
|
$
|
11,690
|
$
|
75,192
|
$
|
75,044
|
|||
(a) | Represents the adding together of all affiliated companies except General Electric Capital Corporation (GECC or Financial Services), which is presented on a one-line basis. |
(b) | Represents GECC earnings/loss from continuing operations attributable to the Company, net of GECC dividends paid to GE. |
FINANCIAL INFORMATION FOR ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE
|
|||||
(In millions)
|
March 31, 2015
|
|
December 31, 2014
|
||
|
|||||
Assets
|
|||||
Cash and equivalents
|
$
|
1,560
|
|
$
|
676
|
Investment securities
|
7,720
|
448
|
|||
Current receivables(a)
|
178
|
180
|
|||
Inventories
|
703
|
588
|
|||
Financing receivables – net
|
|
31,318
|
|
|
2,144
|
Property, plant, and equipment – net
|
8,149
|
1,015
|
|||
Goodwill
|
5,406
|
539
|
|||
Other intangible assets – net
|
310
|
170
|
|||
Other
|
|
3,050
|
|
|
540
|
Valuation allowance on disposal group classified as held for sale
|
(1,845)
|
-
|
|||
Assets of businesses held for sale
|
$
|
56,549
|
|
$
|
6,300
|
|
|
|
|
||
Liabilities
|
|
|
|
||
Short-term borrowings
|
$
|
840
|
441
|
||
Accounts payable(a)
|
1,378
|
510
|
|||
Other current liabilities
|
1,233
|
348
|
|||
Bank deposits
|
1,711
|
1,931
|
|||
Long-term borrowings
|
230
|
-
|
|||
Deferred income taxes
|
255
|
(33)
|
|||
Other
|
1,721
|
178
|
|||
Liabilities of businesses held for sale
|
$
|
7,368
|
$
|
3,375
|
|
(a) | Certain transactions at our Appliances and Signaling businesses are made on an arms-length basis with GECC, consisting primarily of GE customer receivables sold to GECC and GECC services for material procurement. These intercompany balances included within our held for sale businesses are reported in the GE and GECC columns of our financial statements, but are eliminated in deriving our consolidated financial statements. |
FINANCING RECEIVABLES HELD FOR SALE
|
||||||
(in millions)
|
March 31, 2015
|
December 31, 2014
|
||||
Commercial
|
||||||
CLL
|
$
|
65,974
|
$
|
1,409
|
||
Energy Financial Services
|
-
|
35
|
||||
GE Capital Aviation Services (GECAS)
|
259
|
27
|
||||
Total Commercial
|
66,233
|
(a)
|
1,471
|
|||
Consumer
|
26,726
|
(b)
|
359
|
|||
Total financing receivables held for sale
|
$
|
92,959
|
$
|
1,830
|
||
(a)
|
Over 30 days past due and nonaccrual financing receivables related to commercial financing receivables held for sale were $993 million and $1,401 million respectively.
|
(b)
|
Over 30 days past due and nonaccrual financing receivables related to consumer financing receivables held for sale were $1,757 million and $1,109 million, respectively.
|
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS
|
||||||||
Three months ended March 31
|
||||||||
(In millions)
|
2015
|
2014
|
||||||
Operations
|
||||||||
Total revenues and other income (loss)
|
$
|
499
|
$
|
660
|
||||
Earnings (loss) from discontinued operations before income taxes
|
$
|
30
|
$
|
123
|
||||
Benefit (provision) for income taxes
|
122
|
110
|
||||||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
152
|
$
|
233
|
||||
Disposal
|
||||||||
Gain (loss) on disposal before income taxes
|
$
|
(1,808)
|
$
|
18
|
||||
Benefit (provision) for income taxes
|
(546)
|
1
|
||||||
Gain (loss) on disposal, net of taxes
|
$
|
(2,354)
|
$
|
19
|
||||
Earnings (loss) from discontinued operations, net of taxes(a)
|
$
|
(2,202)
|
$
|
252
|
||||
(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 industrial earnings (loss) from discontinued operations, net of taxes, on the Consolidated Statement of Earnings (Loss). |
(In millions)
|
March 31, 2015
|
December 31, 2014
|
||||
Assets
|
||||||
Cash and equivalents
|
$
|
259
|
$
|
320
|
||
Investment securities
|
799
|
848
|
||||
Financing receivables – net
|
19,348
|
19,636
|
||||
Other receivables
|
420
|
422
|
||||
Property, plant and equipment – net
|
137
|
141
|
||||
Goodwill
|
440
|
537
|
||||
Other intangible assets – net
|
93
|
109
|
||||
Deferred income taxes
|
1,425
|
1,755
|
||||
Other
|
10,148
|
13,027
|
||||
Valuation allowance on disposal group classified as discontinued operations
|
(1,808)
|
-
|
||||
Assets of discontinued operations
|
$
|
31,261
|
$
|
36,795
|
||
Liabilities
|
||||||
Short-term borrowings
|
$
|
20
|
$
|
273
|
||
Accounts payable
|
465
|
549
|
||||
Other current liabilities
|
111
|
28
|
||||
Long-term borrowings
|
188
|
234
|
||||
Deferred income taxes
|
183
|
237
|
||||
Other
|
1,106
|
955
|
||||
Liabilities of discontinued operations
|
$
|
2,073
|
$
|
2,276
|
||
FINANCIAL INFORMATION FOR REAL ESTATE
|
||||||||
Three months ended March 31
|
||||||||
(In millions)
|
2015
|
2014
|
||||||
Operations
|
||||||||
Total revenues and other income (loss)
|
$
|
499
|
$
|
630
|
||||
Interest
|
$
|
(237)
|
$
|
(273)
|
||||
Operating and administrative
|
(164)
|
(149)
|
||||||
Depreciation and amortization
|
(60)
|
(86)
|
||||||
Provision for losses on financing receivables
|
4
|
15
|
||||||
Earnings (loss) from discontinued operations, before income taxes
|
42
|
137
|
||||||
Benefit (provision) for income taxes
|
30
|
103
|
||||||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
72
|
$
|
240
|
||||
Disposal
|
||||||||
Gain (loss) on disposal before income taxes
|
$
|
(1,808)
|
$
|
-
|
||||
Benefit (provision) for income taxes
|
(546)
|
-
|
||||||
Gain (loss) on disposal, net of taxes
|
$
|
(2,354)
|
$
|
-
|
||||
Earnings (loss) from discontinued operations, net of taxes(a)
|
$
|
(2,282)
|
$
|
240
|
||||
(a) | Earnings (loss) from discontinued operations attributable to the Company, before income taxes, was $(1,765) million and $138 million for the three months ended March 31, 2015 and 2014, respectively. |