-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Je+72StG97b2EoBIv0HogZ/8GCX8JZGpsrdr0NLHe2fQprAu/auztKvNhhit2FOS WH48fQGmy21JAp6sdErjuA== 0000040545-97-000010.txt : 19970514 0000040545-97-000010.hdr.sgml : 19970514 ACCESSION NUMBER: 0000040545-97-000010 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970513 SROS: BSE SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENERAL ELECTRIC CO CENTRAL INDEX KEY: 0000040545 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC & OTHER ELECTRICAL EQUIPMENT (NO COMPUTER EQUIP) [3600] IRS NUMBER: 140689340 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-00035 FILM NUMBER: 97602738 BUSINESS ADDRESS: STREET 1: 3135 EASTON TURNPIKE STREET 2: C/O BANK OF NEW YORK CITY: FAIRFIELD STATE: CT ZIP: 06431 BUSINESS PHONE: 2033732816 MAIL ADDRESS: STREET 1: 3135 EASTON TURNPIKE CITY: FAIRFIELD STATE: CT ZIP: 06431 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1997 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 1-35 GENERAL ELECTRIC COMPANY (Exact name of registrant as specified in its charter) New York 14-0689340 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 3135 Easton Turnpike, Fairfield, CT 06431-0001 (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) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No After adjusting to reflect the two-for-one stock split of April 28, 1997, there were 3,266,384,877 shares with a par value of $0.16 per share outstanding at May 5, 1997. Part I. FINANCIAL INFORMATION Item 1. FINANCIAL STATEMENTS Condensed Statement of Earnings General Electric Company and consolidated affiliates
(Dollars, except per-share amounts, in millions) Three months ended March 31 (Unaudited) --------------------------------------------------------------------- Consolidated GE GECS ---------------------- ---------------------- --------------------- 1997 1996 1997 1996 1997 1996 ---------- ---------- ---------- ---------- ---------- ---------- Sales of goods $7,704 $7,241 $7,705 $7,244 $ - $ - Sales of services 2,785 2,473 2,817 2,498 - - Earnings of GECS - - 754 650 - - GECS revenues from operations 9,509 7,217 - - 9,544 7,245 Other income 159 167 158 166 - - ---------- ---------- ---------- ---------- ---------- ---------- Total revenues 20,157 17,098 11,434 10,558 9,544 7,245 ---------- ---------- ---------- ---------- ---------- ---------- Cost of goods sold 5,534 5,210 5,535 5,213 - - Cost of services sold 1,985 1,723 2,017 1,748 - - Interest and other financial charges 1,931 1,875 158 143 1,783 1,735 Insurance losses and policyholder and annuity benefits 2,244 1,602 - - 2,244 1,602 Provision for losses on financing receivables 312 213 - - 312 213 Other costs and expenses 5,537 4,097 1,467 1,443 4,094 2,678 Minority interest in net earnings of consolidated affiliates 55 60 25 16 30 44 ---------- ---------- ---------- ---------- ---------- ---------- Total costs and expenses 17,598 14,780 9,202 8,563 8,463 6,272 ---------- ---------- ---------- ---------- ---------- ---------- Earnings before income taxes 2,559 2,318 2,232 1,995 1,081 973 Provision for income taxes (882) (801) (555) (478) (327) (323) ---------- ---------- ---------- ---------- ---------- ---------- Net earnings $1,677 $1,517 $1,677 $1,517 $754 $650 ========== ========== ========== ========== ========== ========== Net earnings per share $0.51 $0.46 Dividends declared per share $0.26 $0.23 Adjusted to reflect the two-for-one stock split on April 28, 1997. See notes to Condensed Consolidated Financial Statements. Consolidating data are shown for "GE" and "GECS". Transactions between GE and GECS have been eliminated from the "consolidated" columns.
Condensed Statement of Financial Position General Electric Company and consolidated affiliates
(Dollars in millions) Consolidated GE GECS ---------------------- ---------------------- --------------------- 3/31/97 12/31/96 3/31/97 12/31/96 3/31/97 12/31/96 ---------- ---------- ---------- ---------- ---------- ---------- Cash and equivalents $3,621 $4,191 $700 $957 $2,921 $3,234 Investment securities 59,782 59,889 7 17 59,775 59,872 Current receivables 8,119 8,704 8,211 8,826 - - Inventories 5,226 4,473 5,226 4,473 - - GECS financing receivables - net 97,145 99,714 - - 97,145 99,714 Other GECS receivables 14,905 15,418 - - 15,562 15,962 Property, plant and equipment (including equipment leased to others) - net 29,278 28,795 10,705 10,832 18,573 17,963 Investment in GECS - - 14,149 14,276 - - Intangible assets 15,968 16,007 7,475 7,367 8,493 8,640 Other assets 36,024 35,211 13,527 13,177 22,497 22,034 ---------- ---------- ---------- ---------- ---------- ---------- Total assets $270,068 $272,402 $60,000 $59,925 $224,966 $227,419 ========== ========== ========== ========== ========== ========== Short-term borrowings $81,931 $80,200 $2,651 $2,339 $79,350 $77,945 Accounts payable 9,661 10,205 4,230 4,195 6,246 6,787 Other GE current liabilities 10,358 10,102 10,211 9,886 - - Long-term borrowings 46,364 49,246 1,697 1,710 44,788 47,676 Insurance liabilities and annuity benefits 61,152 61,327 - - 61,152 61,327 Other liabilities 18,727 18,917 9,683 9,660 8,934 9,138 Deferred income taxes 8,293 8,273 565 533 7,728 7,740 ---------- ---------- ---------- ---------- ---------- ---------- Total liabilities 236,486 238,270 29,037 28,323 208,198 210,613 ---------- ---------- ---------- ---------- ---------- ---------- Minority interest in equity of consolidated affiliates 3,118 3,007 499 477 2,619 2,530 ---------- ---------- ---------- ---------- ---------- ---------- Common stock (3,714,026,000 shares issued) 594 594 594 594 1 1 Unrealized gains on investment securities 183 671 183 671 180 668 Other capital 2,572 2,498 2,572 2,498 2,160 2,253 Retained earnings 39,492 38,670 39,492 38,670 11,808 11,354 Less common stock held in treasury (12,377) (11,308) (12,377) (11,308) - - ---------- ---------- ---------- ---------- ---------- ---------- Total share owners' equity 30,464 31,125 30,464 31,125 14,149 14,276 ---------- ---------- ---------- ---------- ---------- ---------- Total liabilities and equity $270,068 $272,402 $60,000 $59,925 $224,966 $227,419 ========== ========== ========== ========== ========== ========== Adjusted to reflect the two-for-one stock split on April 28, 1997. See notes to Condensed Consolidated Financial Statements. Consolidating data are shown for "GE" and "GECS". March data are unaudited. Transactions between GE and GECS have been eliminated from the "consolidated" columns.
Condensed Statement of Cash Flows General Electric Company and consolidated affiliates
(Dollars in millions) Three months ended March 31 (Unaudited) --------------------------------------------------------------------- Consolidated GE GECS ---------------------- ---------------------- --------------------- 1997 1996 1997 1996 1997 1996 ---------- ---------- ---------- ---------- ---------- ---------- Cash flows from operating activities - ------------------------------------ Net earnings $1,677 $1,517 $1,677 $1,517 $754 $650 Adjustments to reconcile net earnings to cash provided from (used for)operating activities Depreciation and amortization 952 892 382 399 570 493 Earnings retained by GECS - - (454) (424) - - Deferred income taxes 329 258 40 19 289 239 Decrease in GE current receivables 636 490 666 554 - - Increase in GE inventories (672) (567) (672) (567) - - Increase (decrease) in accounts payable (165) (527) 11 (344) (240) (338) Increase in insurance reserves 655 1,565 - - 655 1,565 Provision for losses on financing receivables 312 213 - - 312 213 All other operating activities (1,281) (1,493) (342) 3 (754) (1,350) ---------- ---------- ---------- ---------- ---------- ---------- Cash from operating activities 2,443 2,348 1,308 1,157 1,586 1,472 ---------- ---------- ---------- ---------- ---------- ---------- Cash flows from investing activities - ------------------------------------ Property, plant and equipment (including equipment leased to others) - additions (1,742) (1,709) (457) (342) (1,285) (1,367) Net decrease in GECS financing receivables 1,385 651 - - 1,385 651 Payments for principal businesses purchased (46) (506) (19) (409) (27) (97) All other investing activities (967) (1,267) 206 49 (1,291) (1,370) ---------- ---------- ---------- ---------- ---------- ---------- Cash used for investing activities (1,370) (2,831) (270) (702) (1,218) (2,183) ---------- ---------- ---------- ---------- ---------- ---------- Cash flows from financing activities - ------------------------------------ Net change in borrowings (maturities 90 days or less) 2,732 (203) 242 1,209 2,457 (1,414) Newly issued debt (maturities more than 90 days) 4,810 8,787 147 12 4,663 8,775 Repayments and other reductions (maturities more than 90 days) (8,026) (6,034) (148) (138) (7,878) (5,896) Net purchase of GE shares for treasury (681) (624) (681) (624) - - Dividends paid to share owners (855) (767) (855) (767) (300) (225) All other financing activities 377 (329) - - 377 (329) ---------- ---------- ---------- ---------- ---------- ---------- Cash from (used for) financing activities (1,643) 830 (1,295) (308) (681) 911 ---------- ---------- ---------- ---------- ---------- ---------- Increase (decrease) in cash and equivalents (570) 347 (257) 147 (313) 200 Cash and equivalents at beginning of year 4,191 2,823 957 874 3,234 1,949 ---------- ---------- ---------- ---------- ---------- ---------- Cash and equivalents at March 31 $3,621 $3,170 $700 $1,021 $2,921 $2,149 ========== ========== ========== ========== ========== ========== See notes to Condensed Consolidated Financial Statements. Consolidating data are shown for "GE" and "GECS". Transactions between GE and GECS have been eliminated from the "consolidated" columns.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. The accompanying condensed quarterly financial statements represent the consolidation of General Electric Company and all companies which it directly or indirectly controls, either through majority ownership or otherwise. Reference is made to note 1 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 1996. That note discusses consolidation and financial statement presentation. As used in this Report and in the Report on Form 10-K, "GE" represents the adding together of all affiliated companies except General Electric Capital Services, Inc. ("GECS"), which is presented on a one-line basis; GECS consists of General Electric Capital Services, Inc. and all of its affiliates; and "consolidated" represents the adding together of GE and GECS with the effects of transactions between the two eliminated. 2. The condensed consolidated quarterly financial statements are unaudited. These statements include all adjustments (consisting of normal recurring accruals) considered necessary by management to present a fair statement of the results of operations, financial position and cash flows. The results reported in these condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. 3. The Company has adopted Statement of Financial Accounting Standards ("SFAS") No. 125, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. Among other things, this Statement distinguishes transfers of financial assets that are sales from transfers that are secured borrowings, based on control of the transferred assets. SFAS No. 125 applies to all transactions occurring after December 31, 1996; thus, adoption did not have an effect on the financial position or results of operations of GE or GECS. 4. GE's inventories consisted of the following: At ------------------------ (Dollars in millions) 3/31/97 12/31/96 -------- -------- Raw materials and work in process $3,175 $3,028 Finished goods 2,965 2,404 Unbilled shipments 298 258 Revaluation to LIFO (1,212) (1,217) ------ ------- Total inventories $5,226 $4,473 ====== ======= 5. Property, plant and equipment (including equipment leased to others) -- net, consisted of the following: At ----------------------- (Dollars in millions) 3/31/97 12/31/96 ------- -------- ORIGINAL COST - - GE $25,982 $25,950 - - GECS 25,278 24,834 ------- ------- Total 51,260 50,784 ------- ------- ACCUMULATED DEPRECIATION AND AMORTIZATION - - GE 15,277 15,118 - - GECS 6,705 6,871 ------- ------- Total 21,982 21,989 ------- ------- PROPERTY, PLANT AND EQUIPMENT - NET - - GE 10,705 10,832 - - GECS 18,573 17,963 ------- ------- Total $29,278 $28,795 ======= ======= 6. On April 23, 1997, the share owners of General Electric Company authorized the amendment of its Restated Certificate of Incorporation to change and increase the Company's authorized common stock from 2,200,000,000 shares, par value $0.32 per share, to 4,400,000,000 shares, par value $0.16 per share, and in so doing to split the common stock (including outstanding shares) on a 2-for-1 basis. Such split became effective April 28, 1997, and is reflected in all references to the number of common shares and per-share amounts in this report. Average shares outstanding for the first quarter of 1997 and 1996, after adjusting for the stock split, were 3,285,024,442 and 3,326,267,140, respectively. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION A. RESULTS OF OPERATIONS -- FIRST QUARTER OF 1997 COMPARED WITH FIRST QUARTER OF 1996 General Electric Company's earnings for the first quarter of 1997 were $1.677 billion, up 11% from the 1996 period. Earnings per share also increased 11% to $0.51, up from last year's $0.46. Both earnings and earnings per share were records for the quarter. Revenues for the first quarter of 1997, including acquisitions, rose to a record $20.2 billion, 18% higher than last year's first quarter, reflecting increased global activities and higher sales of spare parts and services by GE's equipment businesses. Revenues increased at ten of GE's twelve businesses, led by GE Capital Services, Power Systems and Aircraft Engines. GE's sales of goods and services were $10.5 billion for the first three months of 1997, an increase of 8% from 1996. Volume increased by 11%, reflecting broad growth across all businesses. Overall, selling prices were down slightly, with most businesses experiencing selling price decreases. There also was a minor negative effect on selling prices arising from the effects of currency exchange rate changes on the translation of sales denominated in other than U.S. dollars. GE's first quarter operating margin increased to 14.3% of sales, up from last year's 13.7%, and was a record for the quarter. The first quarter increase was the fifteenth consecutive quarterly increase of GE's operating margin rate. Ten of GE's twelve businesses reported higher operating profit for the first quarter, with six, led by GE Capital Services, Power Systems and Aircraft Engines, achieving double-digit increases. GE Capital Services' earnings were $754 million, 16% higher than last year's $650 million, benefiting from the globalization and diversity of its businesses. The record results were led by strong double-digit increases in specialized financing, specialty insurance and equipment management activities. Cash generated from GE's operating activities was $1.3 billion in the first quarter, compared with last year's $1.2 billion. As part of the $13 billion share repurchase program, GE purchased $843 million of its stock during the first quarter to reach $7.3 billion -- 203 million shares, adjusted for the April 1997 2-for-1 stock split -- purchased since December 1994. SEGMENT ANALYSIS The comments that follow compare revenues and operating profit by industry segment for the first quarters of 1997 and 1996. o AIRCRAFT ENGINES had considerably higher operating profit on strong revenue growth from the first quarter of 1996. The revenue and operating profit increases both resulted from sharply higher volume in commercial engines as well as in services, including results from an acquired services business. o APPLIANCES reported revenues and operating profit that were somewhat higher than in the first quarter of 1996. The revenue increase was primarily attributable to acquisition-related growth as well as share gains in certain U.S product lines. The improvement in operating profit reflected productivity and the volume increase. o BROADCASTING operating profit was considerably higher on revenues that were about the same as last year's first quarter. The revenue comparison reflects the lack of a current-year counterpart to NBC's broadcast of the January 1996 Superbowl. The increase in operating profit was primarily attributable to improved prime-time pricing, increased international distribution of programming, and growth in NBC's cable programming services, which more than offset higher license fees for certain prime-time programs that were renewed. o GE CAPITAL SERVICES net earnings increased by 16% to $754 million primarily as a result of strong double-digit increases in specialized financing, specialty insurance and equipment management activities. Overall, the increase in net earnings for the lending, leasing, and equipment management businesses of GECS was attributable to a higher average level of invested assets as well as increased financing spreads, reflecting both higher yields and lower borrowing rates. The growth in earnings from specialty insurance activities reflected increased premium and investment income, from both origination volume and investment portfolio growth, partially offset by increases in reserves for insurance losses, primarily related to the new volume. o INDUSTRIAL PRODUCTS AND SYSTEMS reported considerably higher operating profit on a slight increase in revenues. The revenue increase reflected volume increases across all businesses in the segment, partially offset by lower selling prices. The improvement in operating profit was attributable to the combined effects of productivity, particularly at Lighting and Electrical Distribution and Control, and higher volume which more than offset lower selling prices and cost increases. o MATERIALS revenues were slightly lower compared with last year, as the effects of lower selling prices more than offset higher volume. Operating profit was also slightly lower, reflecting primarily the decrease in selling prices and, to a lesser extent, cost inflation, the combination of which more than offset strong productivity gains and the higher volume. o POWER GENERATION reported revenues that were much higher than in last year's first quarter, reflecting continued strong growth in Nuovo Pignone and higher volume in services, partially offset by lower selling prices. Operating profit was sharply higher primarily as a result of strong productivity, particularly at Nuovo Pignone, which more than offset the effects of lower selling prices. o TECHNICAL PRODUCTS & SERVICES revenues were much higher than in the first quarter of 1996, reflecting volume growth in both Medical Systems and Information Services, which more than offset the effects of lower selling prices. Operating profit at Medical Systems was somewhat lower, primarily as a result of a provision for patent litigation involving the Company's MRI product line, and the effects of lower selling prices, the combination of which more than offset higher volume and productivity. Operating profit at Information Services was slightly higher as productivity and improved volume offset the effects of lower selling prices. o ALL OTHER operating profit, principally related to the licensing of GE technology to others, was slightly higher on revenues that were about the same as last year. OTHER New accounting standards issued during the first quarter of 1997 include Statement of Financial Accounting Standards (SFAS) No. 128, EARNINGS PER SHARE. Among other things, the new Statement replaces the disclosure of primary earnings per share with "basic" earnings per share, modifies the calculation of diluted earnings per share (formerly referred to as fully diluted earnings per share), and requires the presentation of both basic and diluted earnings per share on the face of the income statement. The effects of applying the new Statement will be immaterial to GE. SFAS No. 128 is effective for financial statements for periods ending after December 15, 1997. B. FINANCIAL CONDITION With respect to the Condensed Statement of Financial Position, consolidated assets of $270.1 billion were $2.3 billion lower than at December 31, 1996. GE assets were $60.0 billion at March 31, 1997, an increase of $0.1 billion from December 31, 1996. The increase was principally attributable to higher inventories, reflecting principally seasonal increases in several GE businesses, and was largely offset by a decrease in receivables resulting from improved asset management. GECS assets decreased by $2.4 billion from the end of 1996. GE Capital Corporation's financing receivables, which, net of allowance for losses, aggregated $97.1 billion at the end of the first quarter, decreased $2.6 billion from the year-end 1996 level of $99.7 billion. The decrease resulted principally from the combination of normal seasonal declines in credit card receivables and the currency translation effects resulting from the strengthening of the U.S. dollar during the quarter. Management believes that GE Capital's allowance for losses of $2.6 billion (2.63% of the receivables balance at March 31, 1997 -- the same as year end 1996) is appropriate given the strength and diversity of the portfolio and current economic circumstances. Property, plant and equipment, which consists principally of equipment leased to others on operating leases, increased $0.6 billion principally as a result of new auto lease volume. Consolidated liabilities of $236.5 billion at March 31, 1997, were $1.8 billion lower than the year-end 1996 balance of $238.3 billion. GE liabilities increased by $0.7 billion; GECS' liabilities decreased by $2.4 billion. GE borrowings were $4.3 billion ($2.6 billion short-term and $1.7 billion long-term) at March 31, 1997, an increase of $0.3 billion from December 31, 1996. GE's ratio of debt to total capital at the end of March 1997 was 12.3% compared with 11.4% at the end of last year and 14.7% at March 31, 1996. Other changes in GE's liabilities comprised numerous, relatively small items. GECS liabilities decreased by $2.4 billion, principally reflecting reduced financing needs resulting from decreases in financing receivables. Short-term borrowings increased $1.4 billion from year-end 1996, while long-term borrowings decreased by $2.9 billion. With respect to cash flows, consolidated cash and equivalents were $3.6 billion at March 31, 1997, a decrease of about $0.6 billion during the quarter. Cash and equivalents were $3.2 billion at March 31, 1996, an increase of about $0.3 billion during last year's first quarter. GE cash and equivalents decreased $0.3 billion to $0.7 billion at March 31, 1997, compared with $1.0 billion at year end 1996. During the first quarter of 1997, operating cash flows increased to $1.3 billion, compared with $1.2 billion in the first quarter of 1996. Cash used for investing activities ($0.3 billion) principally represented acquisitions and investments in new plant and equipment for a wide variety of capital expenditure projects to reduce costs and improve efficiencies. Cash used for financing activities ($1.3 billion) included $0.9 billion for dividends paid to share owners, representing a 13% increase in the per-share dividend rate compared with first quarter of last year, and $0.8 billion for repurchases of the Company's common stock under the share repurchase program. The dividends and share repurchase were partially offset by $0.4 billion provided from the combination of higher borrowings and dispositions of GE shares from treasury. GE cash and equivalents increased $0.1 billion to $1.0 billion at March 31, 1996, compared with $0.9 billion at year end 1995. During the first quarter of 1996, operating cash flows increased to $1.2 billion, up from $0.5 billion in the first quarter of 1995, the result of relatively insignificant improvements in a number of sources of such cash flows. Cash used for investing activities ($0.7 billion) principally related to acquisitions and investments in new plant and equipment for a wide variety of capital expenditure projects to reduce costs and improve efficiencies. Cash used for financing activities ($0.3 billion) included $0.8 billion for dividends paid to share owners, representing a 12% increase in the per-share dividend rate compared with first quarter of 1995, and $0.9 billion for repurchases of the Company's common stock under the share repurchase program. The dividends and share repurchase were partially offset by $1.4 billion provided from the combination of higher borrowings and dispositions of GE shares from treasury. GECS cash and equivalents decreased $0.3 billion during the first quarter of 1997, when $1.6 billion of cash was provided from operating activities. The principal use of GECS cash during the period was for investing activities ($1.2 billion), which was more than accounted for by additions to equipment that is provided to third parties on operating leases ($1.3 billion) and increases in other investing activities ($1.3 billion), principally related to investment securities, partially offset by lower financing receivables ($1.4 billion). GECS cash and equivalents increased $0.2 billion during the first quarter of 1996, when $1.5 billion of cash was provided from operating activities. The principal use of GECS cash during the period was for investing activities ($2.2 billion), which was more than accounted for by additions to equipment that is provided to third parties on operating leases ($1.4 billion), partially offset by lower financing receivables ($0.7 billion). PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS ENVIRONMENTAL In February 1997, the New York State Department of Environmental Conservation provided a draft complaint to the company seeking $254,000 in penalties and alleging violations of the state's hazardous waste, clean water and spill acts at the company's Waterford, New York facility. The company is negotiating with the state. In April 1997, the United States Environmental Protection Agency informed the company that it was considering issuing a complaint against the company seeking $241,000 in penalties and alleging violations of the Emergency Planning and Community Right-to-Know Act for failure to report chemical use and releases from the company's Waterford, New York facility. The company is negotiating with the Agency. ITEM 2. CHANGES IN SECURITIES On March 27, 1997, GE issued 59,000 shares of GE common stock held in treasury to six former shareholders of Power & Energy Professionals, Inc. ("P&E"), a Texas corporation, in exchange for 100% of the outstanding stock of P&E, pursuant to a written agreement dated as of February 28, 1997 between Granite Services, Inc. (an affiliate of GE) and the share owners of P&E. The issuance did not involve any public offering and was exempt from registration under the Securities Act of 1933, as amended, pursuant to Section 4(2) thereof. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K a. Exhibits Exhibit 11. Computation of Per Share Earnings. Exhibit 12. Computation of Ratio of Earnings to Fixed Charges. Exhibit 27. Financial Data Schedule b. Reports on Form 8-K during the quarter ended March 31, 1997. No reports on Form 8-K were filed during the quarter ended March 31, 1997. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. General Electric Company (Registrant) May 13, 1997 Philip D. Ameen Date Vice President and Comptroller Duly Authorized Officer and Principal Accounting Officer EX-11 2 EXHIBIT 11 GENERAL ELECTRIC COMPANY COMPUTATION OF PER SHARE EARNINGS (Shares in thousands; dollar amounts, except earnings per share, in millions)
Fully Earnings Primary diluted Three months ended March 31, 1997 per common earnings earnings - --------------------------------- share per share per share ---------- ---------- ---------- Net earnings applicable to common stock $1,677 $1,677 $1,677 Dividend equivalents (net of tax) applicable to deferred incentive compensation shares - 3 3 -------- -------- -------- Earnings for per-share calculations $1,677 $1,680 $1,680 -------- -------- -------- Average number of shares outstanding 3,285,024 3,285,024 3,285,024 Average number of deferred incentive compensation shares - 15,160 15,160 Average stock option shares - 49,111 49,165 Average number of restricted stock units - 4,473 4,473 ---------- ---------- ---------- Shares for earnings calculation 3,285,024 3,353,768 3,353,822 ---------- ---------- ---------- Earnings per share $0.51 $0.50 $0.50 - ------------------ ======== ======== ======== Three months ended March 31, 1996 - --------------------------------- Net earnings applicable to common stock $1,517 $1,517 $1,517 Dividend equivalents (net of tax) applicable to deferred incentive compensation shares - 2 2 -------- -------- -------- Earnings for per-share calculations $1,517 $1,519 $1,519 -------- -------- -------- Average number of shares outstanding 3,326,267 3,326,267 3,326,267 Average number of deferred incentive compensation shares - 15,997 15,997 Average stock option shares - 40,283 41,574 Average number of restricted stock units - 3,489 3,566 ---------- ---------- ---------- Shares for earnings calculation 3,326,267 3,386,036 3,387,404 ---------- ---------- ---------- Earnings per share $0.46 $0.45 $0.45 - ------------------ ======== ======== ======== Adjusted for the two-for-one stock split on April 28, 1997.
EX-12 3 EXHIBIT 12 GENERAL ELECTRIC COMPANY RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions) Three months ended March 31, 1997 ------------------- GE except GECS "Earnings" $2,257 Less: Equity in undistributed earnings of General Electric Capital Services, Inc. (454) Plus: Interest and other financial charges included in expense 158 One-third of rental expense 43 ------ Adjusted "earnings" $2,004 ====== Fixed Charges: Interest and other financial charges $158 Interest capitalized 6 One-third of rental expense 43 ------ Total fixed charges $207 ------ Ratio of earnings to fixed charges 9.68 ====== General Electric Company and consolidated affiliates "Earnings" $2,614 Plus: Interest and other financial charges included in expense 1,945 One-third of rental expense 92 ------ Adjusted "earnings" $4,651 ====== Fixed Charges: Interest and other financial charges $1,945 Interest capitalized 18 One-third of rental expense 92 ------ Total fixed charges $2,055 ====== Ratio of earnings to fixed charges 2.26 ====== Earnings before income taxes and minority interest. Earnings after income taxes, net of dividends. Considered to be representative of interest factor in rental expense.
EX-27 4
5 This schedule contains summary financial information extracted from the consolidated financial statements for the period ended March 31, 1997, and is qualified in its entirety by reference to such financial statements. 0000040545 GENERAL ELECTRIC COMPANY 1,000,000 3-MOS DEC-31-1997 MAR-31-1997 3,621 59,782 0 0 5,226 0 51,260 21,982 270,068 0 46,364 0 0 594 29,870 270,068 7,704 10,489 5,534 7,519 0 0 1,931 2,559 882 1,677 0 0 0 1,677 0.50 0.50 Not disclosed in interim periods. Not applicable to consolidated GE. GE sales of goods ($7,704) and services ($2,785). GE cost of goods ($5,534) and services ($1,985) sold. Adjusted for the two-for-one stock split on April 28, 1997.
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