Guarantor Financials

12 Months Ended

Dec. 31, 2015

NOTE 27. GUARANTOR FINANCIAL INFORMATION

Guarantor and Non-Guarantor condensed Consolidating Financial information

On October 26, 2015, GE Capital International Funding Company Unlimited Company, formerly GE Capital International Funding Company (the Issuer), then a finance subsidiary of General Electric Capital Corporation, settled its previously announced private offers to exchange (the Exchange Offers) the Issuer’s new senior unsecured notes for certain outstanding debt securities of General Electric Capital Corporation.

The new notes that were issued were composed of $15.3 billion of 0.964% Six Month Notes due April 2016 (which have subsequently been repaid upon maturity), £0.8 billion of 1.363% Six Month Notes due April 2016 (which have subsequently been repaid upon maturity), $6.1 billion of 2.342% Notes due 2020, $2.0 billion of 3.373% Notes due 2025 and $11.5 billion of 4.418% Notes due 2035. These notes were fully and unconditionally, jointly and severally guaranteed by both the Company and GE Capital International Holdings Limited (GECIHL) (each a Guarantor, and together, the Guarantors).

Under the terms of a registration rights agreement entered into in connection with the Exchange Offers, the Issuer and the Company agreed to file a registration statement with the U.S. Securities and Exchange Commission (SEC) for an offer to exchange new senior notes of the Issuer registered with the SEC and guaranteed by the Guarantors for certain of the Issuer’s outstanding unregistered senior.

Presentation

In connection with the registration of the senior notes, the Company is required to provide certain financial information regarding the Issuer and the Guarantors of the registered securities. Included are the Condensed Consolidating Statements of Earnings (Loss) and Comprehensive Income (Loss) for the years ended December 31, 2015, 2014 and 2013, Condensed Consolidating Statements of Financial Position as of December 31, 2015 and 2014 and Condensed Consolidating Statements of Cash Flows for the years ended December 31, 2015, 2014 and 2013 for:

General Electric Company (the Parent Company Guarantor) - prepared with investments in subsidiaries accounted for under the equity method of accounting and excluding any inter-segment eliminations. The equity basis earnings (losses) of subsidiaries are reflected in the captions “Equity in earnings (loss) of affiliates” and “Earnings (loss) from discontinued operations, net of tax”;
GE Capital International Funding Company Unlimited Company (the Subsidiary Issuer) – incorporated in May 2015 as a finance subsidiary for debt and reflects activity subsequent to the issuance of new notes on October 26, 2015;

GE Capital International Holdings Limited (GECIHL) (the Subsidiary Guarantor) - prepared with investments in non-guarantor subsidiaries accounted for under the equity method of accounting and reflects activity subsequent to the GE Capital Reorganization on December 3, 2015. The equity basis earnings (losses) of subsidiaries are reflected in the captions “Equity in earnings (losses) of affiliates” and “Earnings (loss) from discontinued operations, net of tax”;

Non-Guarantor Subsidiaries - prepared on an aggregated basis excluding any elimination or consolidation adjustments and includes predominantly all non-cash adjustments for cash flows;
Consolidating Adjustments - adjusting entries necessary to consolidate the Parent Company Guarantor with the Subsidiary Issuer, the Subsidiary Guarantor and Non-Guarantor Subsidiaries; and
Consolidated - prepared on a consolidated basis.

CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS)
FOR THE YEAR ENDED DECEMBER 31, 2015

		Parent						Non-
		Company		Subsidiary		Subsidiary		Guarantor		Consolidating
(in millions)		Guarantor		Issuer		Guarantor		Subsidiaries		Adjustments		Consolidated

Revenues and other income
Sales of goods and services	$	43,945	$	-	$	-	$	139,158	$	(77,294)	$	105,809
Other income		2,707		-		1		421,095		(421,575)		2,227
Equity in earnings (loss) of affiliates		1,834		-		436		(153)		(2,117)		-
GE Capital revenues from services		-		250		(460)		36,909		(27,349)		9,350
Total revenues and other income		48,485		250		(23)		597,009		(528,335)		117,386

Costs and expenses
Interest and other financial charges		3,127		232		284		9,037		(9,216)		3,463
Investment contracts, insurance losses and
insurance annuity benefits		-		-		-		2,748		(143)		2,605
Other costs and expenses		45,308		-		3		160,472		(102,651)		103,132
Total costs and expenses		48,435		232		287		172,257		(112,011)		109,200
Earnings (loss) from continuing
operations before income taxes		50		18		(310)		424,752		(416,324)		8,186
Benefit (provision) for income taxes		1,314		(2)		(9)		(11,426)		3,639		(6,485)
Earnings (loss) from continuing operations		1,364		15		(319)		413,326		(412,686)		1,700
Earnings (loss) from discontinued
operations, net of taxes		(7,490)		-		483		(738)		250		(7,495)
Net earnings (loss)		(6,126)		15		164		412,588		(412,436)		(5,795)
Less net earnings (loss) attributable to
noncontrolling interests		-		-		-		250		82		332
Net earnings (loss) attributable to
the Company		(6,126)		15		164		412,339		(412,518)		(6,126)
Other comprehensive income (loss)		1,644		12		1,377		(4,843)		3,454		1,644
Comprehensive income (loss) attributable
to the Company	$	(4,483)	$	27	$	1,542	$	407,496	$	(409,065)	$	(4,483)

CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS)
FOR THE YEAR ENDED DECEMBER 31, 2014

		Parent						Non-
		Company		Subsidiary		Subsidiary		Guarantor		Consolidating
(in millions)		Guarantor		Issuer		Guarantor		Subsidiaries		Adjustments		Consolidated

Revenues and other income
Sales of goods and services	$	44,511	$	-	$	-	$	137,034	$	(74,786)	$	106,758
Other income		1,722		-		-		76,257		(77,202)		778
Equity in earnings (loss) of affiliates		10,510		-		-		-		(10,510)		-
GE Capital revenues from services		-		-		-		50,749		(41,101)		9,648
Total revenues and other income		56,743		-		-		264,040		(203,598)		117,184

Costs and expenses
Interest and other financial charges		3,014		-		-		11,395		(11,686)		2,723
Investment contracts, insurance losses and
insurance annuity benefits		-		-		-		2,678		(148)		2,530
Other costs and expenses		46,128		-		-		155,133		(99,593)		101,668
Total costs and expenses		49,142		-		-		169,206		(111,427)		106,921
Earnings (loss) from continuing
operations before income taxes		7,601		-		-		94,833		(92,171)		10,263
Benefit (provision) for income taxes		1,777		-		-		(4,181)		1,631		(773)
Earnings (loss) from continuing operations		9,378		-		-		90,652		(90,540)		9,490
Earnings (loss) from discontinued
operations, net of taxes		5,855		-		-		(27)		27		5,855
Net earnings (loss)		15,233		-		-		90,625		(90,513)		15,345
Less net earnings (loss) attributable to
noncontrolling interests		-		-		-		2,893		(2,781)		112
Net earnings (loss) attributable to
the Company		15,233		-		-		87,733		(87,733)		15,233
Other comprehensive income (loss)		(9,053)		-		-		(2,787)		2,787		(9,053)
Comprehensive income (loss) attributable
to the Company	$	6,180	$	-	$	-	$	84,946	$	(84,946)	$	6,180

CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS)
FOR THE YEAR ENDED DECEMBER 31, 2013

		Parent						Non-
		Company		Subsidiary		Subsidiary		Guarantor		Consolidating
(in millions)		Guarantor		Issuer		Guarantor		Subsidiaries		Adjustments		Consolidated

Revenues and other income
Sales of goods and services	$	40,219	$	-	$	-	$	129,254	$	(68,930)	$	100,543
Other income		4,024		-		-		54,359		(55,276)		3,107
Equity in earnings (loss) of affiliates		7,919		-		-		-		(7,919)		-
GE Capital revenues from services		-		-		-		48,271		(38,676)		9,595
Total revenues and other income		52,162		-		-		231,883		(170,800)		113,245

Costs and expenses
Interest and other financial charges		2,589		-		-		13,307		(13,026)		2,870
Investment contracts, insurance losses and
insurance annuity benefits		-		-		-		2,779		(118)		2,661
Other costs and expenses		44,120		-		-		149,172		(94,679)		98,614
Total costs and expenses		46,710		-		-		165,258		(107,823)		104,145
Earnings (loss) from continuing
operations before income taxes		5,452		-		-		66,625		(62,977)		9,100
Benefit (provision) for income taxes		2,133		-		-		(2,784)		(568)		(1,219)
Earnings (loss) from continuing operations		7,585		-		-		63,841		(63,545)		7,881
Earnings (loss) from discontinued
operations, net of taxes		5,472		-		-		(1,648)		1,650		5,475
Net earnings (loss)		13,057		-		-		62,193		(61,895)		13,355
Less net earnings (loss) attributable to
noncontrolling interests		-		-		-		(276)		574		298
Net earnings (loss) attributable to
the Company		13,057		-		-		62,469		(62,469)		13,057
Other comprehensive income (loss)		11,110		-		-		1,210		(1,210)		11,109
Comprehensive income (loss) attributable
to the Company	$	24,167	$	-	$	-	$	63,679	$	(63,679)	$	24,167

CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION
DECEMBER 31, 2015

		Parent						Non-
		Company		Subsidiary		Subsidiary		Guarantor		Consolidating
(In millions)		Guarantor		Issuer		Guarantor		Subsidiaries		Adjustments	Consolidated

Assets
Cash and equivalents	$	4,137	$	-	$	-	$	86,955	$	(20,609)	$	70,483
Investment securities		14		-		-		40,886		(8,927)		31,973
Receivables - net		89,106		33,232		69,306		76,319		(222,106)		45,856
Inventories		5,447		-		-		19,762		(2,694)		22,515
Property, plant and equipment - net		6,540		-		-		56,808		(9,253)		54,095
Investment in subsidiaries(a)		274,471		-		78,505		405,686		(758,662)		-
Goodwill and intangible assets		7,793		-		-		60,359		14,118		82,270
All other assets		16,200		90		915		247,738		(200,393)		64,550
Assets of discontinued operations		-		-		-		-		120,951		120,951
Total assets	$	403,706	$	33,321	$	148,725	$	994,513	$	(1,087,574)	$	492,692

Liabilities and equity
Short-term borrowings	$	145,058	$	16,219	$	71,862	$	60,618	$	(243,865)	$	49,892
Accounts payable		6,096		-		-		37,636		(30,052)		13,680
Other current liabilities		14,482		(1)		17		34,903		(7,860)		41,540
Long-term and non-recourse borrowings		97,932		16,487		46,392		106,321		(118,748)		148,384
All other liabilities		41,865		489		224		56,943		(9,924)		89,598
Liabilities of discontinued operations		-		-		-		-		46,487		46,487
Total Liabilities		305,433		33,194		118,495		296,421		(363,961)		389,582

Redeemable noncontrolling interests		-		-		-		2,888		84		2,972

GE shareowners' equity		98,274		127		30,230		693,589		(723,946)		98,274
Noncontrolling interests		-		-		-		1,616		248		1,864
Total equity		98,274		127		30,230		695,204		(723,697)		100,138
Total liabilities, redeemable
noncontrolling interests and equity	$	403,706	$	33,321	$	148,725	$	994,513	$	(1,087,574)	$	492,692

(a) Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $40.1 billion and net assets of discontinued operations of $40.0 billion.

CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION
DECEMBER 31, 2014

		Parent						Non-
		Company		Subsidiary		Subsidiary		Guarantor		Consolidating
(In millions)		Guarantor		Issuer		Guarantor		Subsidiaries		Adjustments	Consolidated

Assets
Cash and equivalents	$	4,820	$	-	$	-	$	87,408	$	(22,203)	$	70,025
Investment securities		6		-		-		48,869		(13,369)		35,505
Receivables - net		4,996		-		-		277,555		(239,608)		42,943
Inventories		4,759		-		-		15,425		(2,494)		17,689
Property, plant and equipment - net		6,264		-		-		61,453		(19,647)		48,070
Investment in subsidiaries		302,634		-		-		344,778		(647,413)		-
Goodwill and intangible assets		7,237		-		-		62,525		(3,373)		66,389
All other assets		15,206		-		-		202,619		(167,020)		50,804
Assets of discontinued operations		-		-		-		-		323,529		323,529
Total assets	$	345,920	$	-	$	-	$	1,100,631	$	(791,597)	$	654,954

Liabilities and equity
Short-term borrowings	$	135,793	$	-	$	-	$	134,651	$	(200,020)	$	70,425
Accounts payable		741		-		-		38,835		(27,509)		12,067
Other current liabilities		11,753		-		-		17,144		280		29,177
Long-term and non-recourse borrowings		25,966		-		-		205,046		(40,012)		190,999
All other liabilities		43,508		-		-		70,556		(26,942)		87,123
Liabilities of discontinued operations		-		-		-		-		128,233		128,233
Total Liabilities		217,761		-		-		466,232		(165,970)		518,023

Redeemable noncontrolling interests		-		-		-		(42)		140		98

GE shareowners' equity		128,159		-		-		631,308		(631,308)		128,159
Noncontrolling interests		-		-		-		3,133		5,541		8,674
Total equity		128,159		-		-		634,441		(625,767)		136,833
Total liabilities, redeemable
noncontrolling interests and equity	$	345,920	$	-	$	-	$	1,100,631	$	(791,597)	$	654,954

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2015

		Parent						Non-
		Company		Subsidiary		Subsidiary		Guarantor		Consolidating
(In millions)		Guarantor		Issuer		Guarantor		Subsidiaries		adjustments		Consolidated

Cash flows – operating activities
Cash from (used for) operating activities -
continuing operations	$	13,587	$	68	$	631	$	433,479	$	(435,909)	$	11,856
Cash from (used for) operating activities -
discontinued operations		(7,490)		-		(30)		27,533		(11,979)		8,034
Cash from (used for) operating activities		6,097		68		601		461,013		(447,888)		19,891

Cash flows – investing activities
Cash from (used for) investing activities –
continuing operations		7,106		(248)		(601)		(493,933)		549,289		61,613
Cash from (used for) investing activities –
discontinued operations		-		-		-		5,854		(7,979)		(2,125)
Cash from (used for) investing activities		7,106		(248)		(601)		(488,079)		541,310		59,488

Cash flows – financing activities
Cash from (used for) financing activities –
continuing operations		(13,886)		180		-		67,063		(122,904)		(69,547)
Cash from (used for) financing activities –
discontinued operations		-		-		-		(37,582)		31,075		(6,507)
Cash from (used for) financing activities		(13,886)		180		-		29,481		(91,829)		(76,054)
Effect of currency exchange rate changes
on cash and equivalents		-		-		-		(3,464)		-		(3,464)
Increase (decrease) in cash and equivalents		(683)		-		-		(1,049)		1,594		(138)
Cash and equivalents at beginning of year		4,820		-		-		108,400		(22,203)		91,017
Cash and equivalents at end of year		4,137		-		-		107,351		(20,609)		90,879
Less cash and equivalents of discontinued
operations at end of year		-		-		-		20,395		-		20,395
Cash and equivalents of continuing operations
at end of year	$	4,137	$	-	$	-	$	86,955	$	(20,609)	$	70,483

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2014

		Parent						Non-
		Company		Subsidiary		Subsidiary		Guarantor		Consolidating
(In millions)		Guarantor		Issuer		Guarantor		Subsidiaries		adjustments		Consolidated

Cash flows – operating activities
Cash from (used for) operating activities -
continuing operations	$	(2,483)	$	-	$	-	$	147,449	$	(128,933)	$	16,033
Cash from (used for) operating activities -
discontinued operations		5,855		-		-		5,794		27		11,676
Cash from (used for) operating activities		3,372		-		-		153,243		(128,906)		27,709

Cash flows – investing activities
Cash from (used for) investing activities –
continuing operations		(1,410)		-		-		(403,870)		424,509		19,229
Cash from (used for) investing activities –
discontinued operations		-		-		-		(24,263)		-		(24,263)
Cash from (used for) investing activities		(1,410)		-		-		(428,133)		424,509		(5,034)

Cash flows – financing activities
Cash from (used for) financing activities –
continuing operations		(5,641)		-		-		272,150		(307,421)		(40,912)
Cash from (used for) financing activities –
discontinued operations		-		-		-		23,956		-		23,956
Cash from (used for) financing activities		(5,641)		-		-		296,106		(307,421)		(16,956)
Effect of currency exchange rate changes
on cash and equivalents		-		-		-		(3,492)		-		(3,492)
Increase (decrease) in cash and equivalents		(3,679)		-		-		17,721		(11,818)		2,224
Cash and equivalents at beginning of year		8,499		-		-		90,678		(10,385)		88,792
Cash and equivalents at end of year		4,820		-		-		108,400		(22,203)		91,017
Less cash and equivalents of discontinued
operations at end of year		-		-		-		20,991		-		20,991
Cash and equivalents of continuing operations
at end of year	$	4,820	$	-	$	-	$	87,408	$	(22,203)	$	70,025

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2013

		Parent						Non-
		Company		Subsidiary		Subsidiary		Guarantor		Consolidating
(In millions)		Guarantor		Issuer		Guarantor		Subsidiaries		adjustments		Consolidated

Cash flows – operating activities
Cash from (used for) operating activities -
continuing operations	$	1,818	$	-	$	-	$	124,284	$	(111,704)	$	14,398
Cash from (used for) operating activities -
discontinued operations		5,472		-		-		6,990		1,650		14,112
Cash from (used for) operating activities		7,290		-		-		131,274		(110,054)		28,510

Cash flows – investing activities
Cash from (used for) investing activities –
continuing operations		5,254		-		-		(37,752)		76,657		44,159
Cash from (used for) investing activities –
discontinued operations		-		-		-		(15,042)		-		(15,042)
Cash from (used for) investing activities		5,254		-		-		(52,794)		76,657		29,117

Cash flows – financing activities
Cash from (used for) financing activities –
continuing operations		(6,790)		-		-		(72,741)		32,718		(46,813)
Cash from (used for) financing activities –
discontinued operations		-		-		-		1,238		-		1,238
Cash from (used for) financing activities		(6,790)		-		-		(71,503)		32,718		(45,575)
Effect of currency exchange rate changes
on cash and equivalents		-		-		-		(795)		-		(795)
Increase (decrease) in cash and equivalents		5,754		-		-		6,183		(679)		11,258
Cash and equivalents at beginning of year		2,745		-		-		84,494		(9,706)		77,533
Cash and equivalents at end of year		8,499		-		-		90,678		(10,385)		88,792
Less cash and equivalents of discontinued
operations at end of year		-		-		-		9,617		-		9,617
Cash and equivalents of continuing operations
at end of year	$	8,499	$	-	$	-	$	81,060	$	(10,385)	$	79,173