Contract Assets

12 Months Ended

Dec. 31, 2016

Other Assets [Abstract]

Contract Assets

NOTE 9. CONTRACT ASSETS AND ALL OTHER ASSETS

December 31 (In millions)		2016		2015
GE
Revenue in excess of billings
Long-term product service agreements(a)	$	12,752	$	10,346
Long-term equipment contract revenue(b)		5,859		5,645
Total revenue in excess of billings		18,611		15,991
Deferred inventory costs(c)		3,349		2,328
Non-recurring engineering costs(d)		2,185		1,790
Other		1,018		1,048
Contract assets	$	25,162	$	21,156

(a)Long-term product service agreement balances are presented net of related billings in excess of revenues of $3,750 million and $2,602 million at December 31, 2016 and 2015, respectively.

(b) Reflects revenues earned in excess of billings on our long-term contracts to construct technically complex equipment (such as gas power systems).

(c) Represents cost deferral for shipped goods (such as components for wind turbine assembly within our Renewable Energy segment) and other costs for which the criteria for revenue recognition has not yet been met.

(d) Included costs incurred prior to production (e.g., requisition engineering) for long-term equipment production contracts, primarily within our Aviation segment, which are allocated ratably to each unit produced.

Contract assets increased $4,006 million in 2016, which was primarily driven by a change in estimated profitability within our long-term product service agreements resulting in an adjustment of $2,216 million, as well as an increase in deferred inventory costs.

December 31 (In millions)		2016		2015
GE
Investments
Associated companies	$	3,574	$	3,582
Other		631		644
		4,205		4,226
Long-term receivables, including notes		2,433		2,310
Derivative instruments		313		733
Other(a)		5,055		5,544
		12,007		12,813
GE Capital
Investments
Associated companies		8,124		8,373
Assets held for sale(b)		2,361		857
Time deposits(c)		-		10,386
Other		122		97
		10,607		19,713
Derivative instruments		32		549
Advances to suppliers		1,632		1,809
Other(d)		2,337		3,010
		14,608		25,081
Eliminations		561		(1,097)
All Other Assets	$	27,176	$	36,797

(a)Primarily included $3,320 million and $3,494 million of prepaid insurance, taxes and other expenses and $789 million and $1,030 million of deferred charges at December 31, 2016 and 2015, respectively.

(b)Assets were classified as held for sale on the date a decision was made to dispose of them through sale or other means. At December 31, 2016 and 2015, such assets consisted primarily of loans, aircraft and equipment, and were accounted for at the lower of carrying amount or estimated fair value less costs to sell.

(c) Balances at December 31, 2015 included $10,386 million of high quality interest bearing deposits with European branches of global banks, predominantly in the U.K., that matured in April 2016.

(d)Balances at December 31, 2016 and 2015 included deferred acquisition cost adjustments of $558 million and $544 million, respectively, in our run-off insurance operations to reflect the effects that would have been recognized had the related unrealized investment securities holding gains and losses actually been realized.