Cost Information

12 Months Ended

Dec. 31, 2015

Cost Information [Abstract]

Consolidated Other Cost and Expenses

NOTE 26. COST INFORMATION

RESEARCH & DEVELOPMENT

We conduct research and development (R&D) activities to continually enhance our existing products and services, develop new product and services to meet our customer’s changing needs and requirements, and address new market opportunities.

Research and development expenses are classified in cost of goods and services sold in the Statement of Earnings. In addition, research and development funding from customers, principally the U.S. government, is recorded as an offset to such costs. We also enter into research and development arrangements with unrelated investors, which are generally formed through partnerships and consolidated within GE’s financial statements. Research and development funded through consolidated partnerships is classified within net earnings/loss attributable to noncontrollinginterests.

(In millions)		2015		2014		2013
Total R&D	$	5,278	$	5,273	$	5,461
Less customer funded R&D (principally the U.S. Government)		(803)		(721)		(711)
Less partner funded R&D		(226)		(319)		(107)
GE funded R&D	$	4,249	$	4,233	$	4,643

COLLABORATIVE ARRANGEMENTS

Our businesses enter into collaborative arrangements primarily with manufacturers and suppliers of components used to build and maintain certain engines, under which GE and these participants share in risks and rewards of these product programs. GE’s payments to participants are recorded as cost of services sold ($788 million, $873 million and $820 million for the years 2015, 2014 and 2013, respectively) or as cost of goods sold ($2,736 million, $2,660 million and $2,613 million for the years 2015, 2014 and 2013, respectively).

RENTAL EXPENSE

Rental expense under operating leases is shown below.

(In millions)		2015		2014		2013
GE	$	1,258	$	1,356	$	1,380
GE Capital		107		123		124
		1,365		1,479		1,504
Eliminations		(169)		(223)		(198)
Total	$	1,196	$	1,256	$	1,306

At December 31, 2015, minimum rental commitments under noncancellable operating leases aggregated $4,946 million and $310 million for GE and GE Capital, respectively. Amounts payable over the next five years follow.

(In millions)		2016		2017		2018		2019		2020
GE	$	909	$	819	$	699	$	615	$	547
GE Capital		29		24		20		19		18
		938		843		719		634		565
Eliminations		(144)		(136)		(128)		(115)		(109)
Total	$	794	$	707	$	591	$	519	$	456