EX-99 2 ge2q2017ex99.htm EXHIBIT 99 Exhibit

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GENERAL ELECTRIC COMPANY
CONDENSED STATEMENT OF EARNINGS (LOSS) (UNAUDITED)
 
 
Consolidated
 
 
GE(a)
 
Financial Services (GE Capital)
Three months ended June 30
 
2017

 
2016

 
V%

 
 
2017

 
2016

 
V%

 
2017

 
2016

 
V%

Revenues and other income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales of goods and services
 
$
27,239

 
$
28,028

 
(3
)%
 
 
$
27,293

 
$
28,150

 
(3
)%
 
$
33

 
$
29

 
14
 %
Other income
 
298

 
3,150

 
 
 
 
300

 
3,054

 
 
 

 

 
 
GE Capital earnings (loss) from continuing operations
 

 

 
 
 
 
(172
)
 
(600
)
 
 
 

 

 
 
GE Capital revenues from services
 
2,022

 
2,316

 
 
 
 

 

 
 
 
2,413

 
2,742

 
 
Total revenues and other income
 
29,558

 
33,494

 
(12
)%
 
 
27,421

 
30,604

 
(10
)%
 
2,446

 
2,771

 
(12
)%
Costs and expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
21,793

 
22,383

 
 
 
 
21,328

 
21,958

 
 
 
547

 
576

 
 
Selling, general and administrative expenses
 
4,287

 
4,883

 
 
 
 
3,919

 
4,231

 
 
 
498

 
733

 
 
Interest and other financial charges
 
1,174

 
1,326

 
 
 
 
637

 
567

 
 
 
771

 
958

 
 
Investment contracts, insurance losses and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
insurance annuity benefits
 
657

 
776

 
 
 
 

 

 
 
 
682

 
815

 
 
Other costs and expenses
 
133

 
303

 
 
 
 

 

 
 
 
144

 
313

 
 
Total costs and expenses
 
28,044

 
29,670

 
(5
)%
 
 
25,883

 
26,756

 
(3
)%
 
2,641

 
3,394

 
(22
)%
Earnings (loss) from continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
before income taxes
 
1,515

 
3,824

 
(60
)%
 
 
1,538

 
3,847

 
(60
)%
 
(195
)
 
(623
)
 
69
 %
Benefit (provision) for income taxes
 
(15
)
 
(461
)
 
 
 
 
(218
)
 
(629
)
 
 
 
202

 
168

 
 
Earnings (loss) from continuing operations
 
1,499

 
3,363

 
(55
)%
 
 
1,320

 
3,218

 
(59
)%
 
7

 
(454
)
 
F

Earnings (loss) from discontinued
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
operations, net of taxes
 
(146
)
 
(541
)
 
 
 
 
(152
)
 
(544
)
 
 
 
(146
)
 
(541
)
 
 
Net earnings (loss)
 
1,354

 
2,823

 
(52
)%
 
 
1,167

 
2,674

 
(56
)%
 
(138
)
 
(995
)
 
86
 %
Less net earnings (loss) attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests
 
(14
)
 
(86
)
 
 
 
 
(18
)
 
(82
)
 
 
 
4

 
(4
)
 
 
Net earnings (loss) attributable to the Company
 
1,367

 
2,908

 
(53
)%
 
 
1,185

 
2,756

 
(57
)%
 
(142
)
 
(991
)
 
86
 %
Preferred stock dividends
 
(182
)
 
(152
)
 
 
 
 

 

 
 
 
(182
)
 
(152
)
 
 
Net earnings (loss) attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GE common shareowners
 
$
1,185

 
$
2,756

 
(57
)%
 
 
$
1,185

 
$
2,756

 
(57
)%
 
$
(324
)
 
$
(1,143
)
 
72
 %
Amounts attributable to GE common
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
shareowners:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) from continuing operations
 
$
1,499

 
$
3,363

 
(55
)%
 
 
$
1,320

 
$
3,218

 
(59
)%
 
$
7

 
$
(454
)
 
F

Less net earnings (loss) attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
to noncontrolling interests, continuing operations
 
(21
)
 
(89
)
 
 
 
 
(18
)
 
(82
)
 
 
 
(3
)
 
(7
)
 
 
Earnings (loss) from continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
attributable to the Company
 
1,520

 
3,452

 
(56
)%
 
 
1,338

 
3,300

 
(59
)%
 
10

 
(448
)
 
F

Preferred stock dividends
 
(182
)
 
(152
)
 
 
 
 

 

 
 
 
(182
)
 
(152
)
 
 
Earnings (loss) from continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
attributable to GE common shareowners
 
1,338

 
3,300

 
(59
)%
 
 
1,338

 
3,300

 
(59
)%
 
(172
)
 
(600
)
 
71
 %
Earnings (loss) from discontinued
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
operations, net of taxes
 
(146
)
 
(541
)
 
 
 
 
(152
)
 
(544
)
 
 
 
(146
)
 
(541
)
 
 
Less net earnings (loss) attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests, discontinued operations
 
7

 
3

 
 
 
 

 

 
 
 
7

 
3

 
 
Net earnings (loss) attributable to GE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
common shareowners
 
$
1,185

 
$
2,756

 
(57
)%
 
 
$
1,185

 
$
2,756

 
(57
)%
 
$
(324
)
 
$
(1,143
)
 
72
 %
Per-share amounts - earnings (loss) from
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings (loss) per share
 
$
0.15

 
$
0.36

 
(58
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings (loss) per share
 
$
0.15

 
$
0.36

 
(58
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Per-share amounts - net earnings (loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings (loss) per share
 
$
0.13

 
$
0.30

 
(57
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings (loss) per share
 
$
0.14

 
$
0.30

 
(53
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total average equivalent shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted
 
8,760

 
9,187

 
(5
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
8,671

 
9,079

 
(4
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends declared per common share
 
$
0.24

 
$
0.23

 
4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis.
Amounts may not add due to rounding. Dollar amounts and share amounts in millions; per-share amounts in dollars.
"GE Capital" means GE Capital Global Holdings, LLC (GECGH) and its predecessor General Electric Capital Corporation (GECC) and all of their affiliates and associated companies. Separate information is shown for "GE" and "Financial Services (GE Capital)." Transactions between GE and GE Capital have been eliminated from the "Consolidated" column. See Note 1 to the 2016 consolidated financial statements at www.ge.com/ar2016 for further information about consolidation matters.

4



GENERAL ELECTRIC COMPANY
CONDENSED STATEMENT OF EARNINGS (LOSS) (UNAUDITED)
 
 
Consolidated
 
 
GE(a)
 
Financial Services (GE Capital)
Six months ended June 30
 
2017

 
2016

 
V%

 
 
2017

 
2016

 
V%

 
2017

 
2016

 
V%

Revenues and other income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales of goods and services
 
$
52,467

 
$
53,342

 
(2
)%
 
 
$
52,684

 
$
53,556

 
(2
)%
 
$
62

 
$
54

 
15
 %
Other income
 
465

 
3,158

 
 

 
 
437

 
3,146

 
 

 

 

 
 
GE Capital earnings (loss) from continuing operations
 

 

 
 

 
 
(219
)
 
(1,492
)
 
 

 

 

 
 
GE Capital revenues from services
 
4,286

 
4,838

 
 

 
 

 

 
 

 
5,065

 
5,602

 
 
Total revenues and other income
 
57,219

 
61,339

 
(7
)%
 
 
52,902

 
55,210

 
(4
)%
 
5,127

 
5,656

 
(9
)%
Costs and expenses
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
Cost of sales
 
42,153

 
42,744

 
 

 
 
41,302

 
41,848

 
 

 
1,131

 
1,164

 
 
Selling, general and administrative expenses
 
8,793

 
9,491

 
 

 
 
7,939

 
8,214

 
 

 
1,073

 
1,607

 
 
Interest and other financial charges
 
2,313

 
3,062

 
 

 
 
1,200

 
1,007

 
 

 
1,582

 
2,389

 
 
Investment contracts, insurance losses and
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
insurance annuity benefits
 
1,291

 
1,417

 
 

 
 

 

 
 

 
1,318

 
1,486

 
 
Other costs and expenses
 
323

 
562

 
 

 
 

 

 
 

 
358

 
581

 
 
Total costs and expenses
 
54,872

 
57,276

 
(4
)%
 
 
50,441

 
51,069

 
(1
)%
 
5,461

 
7,227

 
(24
)%
Earnings (loss) from continuing operations
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
before income taxes
 
2,346

 
4,063

 
(42
)%
 
 
2,461

 
4,141

 
(41
)%
 
(334
)
 
(1,571
)
 
79
 %
Benefit (provision) for income taxes
 
(31
)
 
(284
)
 
 

 
 
(361
)
 
(793
)
 
 

 
330

 
509

 
 
Earnings (loss) from continuing operations
 
2,315

 
3,779

 
(39
)%
 
 
2,100

 
3,349

 
(37
)%
 
(4
)
 
(1,062
)
 
F

Earnings (loss) from discontinued
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
operations, net of taxes
 
(385
)
 
(849
)
 
 

 
 
(392
)
 
(852
)
 
 

 
(388
)
 
(849
)
 
 
Net earnings (loss)
 
1,931

 
2,930

 
(34
)%
 
 
1,708

 
2,496

 
(32
)%
 
(392
)
 
(1,911
)
 
79
 %
Less net earnings (loss) attributable to
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
noncontrolling interests
 
(90
)
 
(207
)
 
 

 
 
(96
)
 
(199
)
 
 

 
6

 
(8
)
 
 
Net earnings (loss) attributable to the Company
 
2,020

 
3,137

 
(36
)%
 
 
1,804

 
2,695

 
(33
)%
 
(398
)
 
(1,903
)
 
79
 %
Preferred stock dividends
 
(216
)
 
(441
)
 
 

 
 

 

 
 

 
(216
)
 
(441
)
 
 
Net earnings (loss) attributable to
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
GE common shareowners
 
$
1,804

 
$
2,695

 
(33
)%
 
 
$
1,804

 
$
2,695

 
(33
)%
 
$
(614
)
 
$
(2,344
)
 
74
 %
Amounts attributable to GE common
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
shareowners:
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
Earnings (loss) from continuing operations
 
$
2,315

 
$
3,779

 
(39
)%
 
 
$
2,100

 
$
3,349

 
(37
)%
 
$
(4
)
 
$
(1,062
)
 
F

Less net earnings (loss) attributable
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
to noncontrolling interests, continuing operations
 
(97
)
 
(210
)
 
 

 
 
(96
)
 
(199
)
 
 

 
(1
)
 
(11
)
 
 
Earnings (loss) from continuing operations
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
attributable to the Company
 
2,412

 
3,989

 
(40
)%
 
 
2,196

 
3,548

 
(38
)%
 
(3
)
 
(1,051
)
 
F

Preferred stock dividends
 
(216
)
 
(441
)
 
 

 
 

 

 
 

 
(216
)
 
(441
)
 
 
Earnings (loss) from continuing operations
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
attributable to GE common shareowners
 
2,196

 
3,548

 
(38
)%
 
 
2,196

 
3,548

 
(38
)%
 
(219
)
 
(1,492
)
 
85
 %
Earnings (loss) from discontinued
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
operations, net of taxes
 
(385
)
 
(849
)
 
 

 
 
(392
)
 
(852
)
 
 

 
(388
)
 
(849
)
 
 
Less net earnings (loss) attributable to
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
noncontrolling interests, discontinued operations
 
7

 
3

 
 

 
 

 

 
 

 
7

 
3

 
 
Net earnings (loss) attributable to GE
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
common shareowners
 
$
1,804

 
$
2,695

 
(33
)%
 
 
$
1,804

 
$
2,695

 
(33
)%
 
$
(614
)
 
$
(2,344
)
 
74
 %
Per-share amounts - earnings (loss) from
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
continuing operations
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings (loss) per share
 
$
0.25

 
$
0.38

 
(34
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings (loss) per share
 
$
0.25

 
$
0.39

 
(36
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Per-share amounts - net earnings (loss)
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings (loss) per share
 
$
0.20

 
$
0.29

 
(31
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings (loss) per share
 
$
0.21

 
$
0.29

 
(28
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total average equivalent shares
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted
 
8,789

 
9,281

 
(5
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
8,695

 
9,179

 
(5
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends declared per common share
 
$
0.48

 
$
0.46

 
4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis.
Amounts may not add due to rounding. Dollar amounts and share amounts in millions; per-share amounts in dollars.
"GE Capital" means GE Capital Global Holdings, LLC (GECGH) and its predecessor General Electric Capital Corporation (GECC) and all of their affiliates and associated companies. Separate information is shown for "GE" and "Financial Services (GE Capital)." Transactions between GE and GE Capital have been eliminated from the "Consolidated" column. See Note 1 to the 2016 consolidated financial statements at www.ge.com/ar2016 for further information about consolidation matters.


5



GENERAL ELECTRIC COMPANY
SUMMARY OF OPERATING SEGMENTS (UNAUDITED)
 
 
Three months ended June 30
 
Six months ended June 30
(Dollars in millions)
 
2017

 
2016

 
V%

 
2017

 
2016

 
V%

Revenues(a)
 
 
 
 
 
 
 
 
 
 
 
 
Power
 
$
6,969

 
$
6,639

 
5
 %
 
$
13,058

 
$
11,843

 
10
 %
Renewable Energy
 
2,457

 
2,094

 
17
 %
 
4,501

 
3,763

 
20
 %
Oil & Gas
 
3,108

 
3,219

 
(3
)%
 
6,110

 
6,533

 
(6
)%
Aviation
 
6,532

 
6,511

 
 %
 
13,336

 
12,774

 
4
 %
Healthcare
 
4,700

 
4,525

 
4
 %
 
8,990

 
8,708

 
3
 %
Transportation
 
1,071

 
1,240

 
(14
)%
 
2,110

 
2,222

 
(5
)%
Energy Connections & Lighting(b)
 
3,210

 
4,401

 
(27
)%
 
5,957

 
8,657

 
(31
)%
Total industrial segment revenues
 
28,047

 
28,630

 
(2
)%
 
54,063

 
54,499

 
(1
)%
Capital
 
2,446

 
2,771

 
(12
)%
 
5,127

 
5,656

 
(9
)%
Total segment revenues
 
30,493

 
31,401

 
(3
)%
 
59,190

 
60,155

 
(2
)%
Corporate items and eliminations(a)
 
(935
)
 
2,093

 
 
 
(1,972
)
 
1,184

 
 
Consolidated revenues
 
$
29,558

 
$
33,494

 
(12
)%
 
$
57,219

 
$
61,339

 
(7
)%
Segment profit (loss)(a)
 
 
 
 
 
 
 
 
 
 
 
 
Power
 
$
1,031

 
$
1,140

 
(10
)%
 
$
1,827

 
$
1,714

 
7
 %
Renewable Energy
 
160

 
128

 
25
 %
 
267

 
211

 
27
 %
Oil & Gas
 
155

 
320

 
(52
)%
 
361

 
628

 
(43
)%
Aviation
 
1,492

 
1,348

 
11
 %
 
3,176

 
2,872

 
11
 %
Healthcare
 
826

 
782

 
6
 %
 
1,469

 
1,413

 
4
 %
Transportation
 
203

 
273

 
(26
)%
 
359

 
437

 
(18
)%
Energy Connections & Lighting(b)
 
80

 
131

 
(39
)%
 
109

 
162

 
(33
)%
Total industrial segment profit
 
3,947

 
4,122

 
(4
)%
 
7,568

 
7,437

 
2
 %
Capital
 
(172
)
 
(600
)
 
71
 %
 
(219
)
 
(1,492
)
 
85
 %
Total segment profit (loss)
 
3,775

 
3,523

 
7
 %
 
7,349

 
5,944

 
24
 %
Corporate items and eliminations(a)
 
(1,583
)
 
974

 
 
 
(3,592
)
 
(597
)
 
 
GE interest and other financial charges
 
(637
)
 
(567
)
 
 
 
(1,200
)
 
(1,007
)
 
 
GE provision for income taxes
 
(218
)
 
(629
)
 
 
 
(361
)
 
(793
)
 
 
Earnings (loss) from continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
attributable to GE common shareowners
 
1,338

 
3,300

 
(59
)%
 
2,196

 
3,548

 
(38
)%
Earnings (loss) from discontinued operations,
 
 
 
 
 
 
 
 
 
 
 
 
net of taxes
 
(146
)
 
(541
)
 
73
 %
 
(385
)
 
(849
)
 
55
 %
Less net earnings attributable to
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests, discontinued operations
 
7

 
3

 
 
 
7

 
3

 
 
Earnings (loss) from discontinued operations,
 
 
 
 
 
 
 
 
 
 
 
 
net of tax and noncontrolling interests
 
(152
)
 
(544
)
 
72
 %
 
(392
)
 
(852
)
 
54
 %
Consolidated net earnings (loss)
 
 
 
 
 
 
 
 
 
 
 
 
attributable to GE common shareowners
 
$
1,185

 
$
2,756

 
(57
)%
 
$
1,804

 
$
2,695

 
(33
)%
(a)
Segment revenues include revenues and other income related to the segment. Segment profit excludes results reported as discontinued operations and material accounting changes, the portion of earnings or loss attributable to noncontrolling interests of consolidated subsidiaries, and as such only includes the portion of earnings or loss attributable to our share of the consolidated earnings or loss of consolidated subsidiaries. Segment profit excludes or includes interest and other financial charges and income taxes according to how a particular segment's management is measured – excluded in determining segment profit, which we sometimes refer to as "operating profit," for Power, Renewable Energy, Oil & Gas, Aviation, Healthcare, Transportation and Energy Connections & Lighting; included in determining segment profit, which we sometimes refer to as "net earnings," for Capital. Certain corporate costs, such as shared services, employee benefits and information technology are allocated to our segments based on usage. A portion of the remaining corporate costs are allocated based on each segment's relative net cost of operations. Total industrial segment revenues and profit include the sum of our seven industrial reporting segments without giving effect to the elimination of transactions among such segments. Total segment revenues and profit include the sum of our seven industrial segments and one financial services 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.
(b)
Beginning in the third quarter of 2016, the former Energy Connections and Appliances & Lighting segments are presented as one reporting segment called Energy Connections & Lighting. This segment includes the historical results of the Appliances business prior to its sale in June 2016. Beginning in the third quarter of 2017, the Energy Connections business within the Energy Connections & Lighting segment will be combined with the Power segment and presented as one reporting segment called Power.

Amounts may not add due to rounding

6



GENERAL ELECTRIC COMPANY
CONDENSED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
 
 
Consolidated
 
GE(a)
 
Financial Services (GE Capital)
 
 
June 30,

 
December 31,

 
June 30,

 
December 31,

 
June 30,

 
December 31,

(Dollars in billions)
 
2017

 
2016

 
2017

 
2016

 
2017

 
2016

Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and marketable securities(b)
 
$
84.0

 
$
92.4

 
$
14.4

 
$
10.7

 
$
69.6

 
$
81.8

Receivables
 
21.4

 
24.1

 
11.7

 
12.7

 

 

Inventories
 
22.8

 
22.4

 
22.8

 
22.3

 
0.1

 
0.1

GE Capital financing receivables - net
 
12.1

 
12.2

 

 

 
24.7

 
26.0

Property, plant & equipment - net
 
50.2

 
50.5

 
19.6

 
19.1

 
31.5

 
32.2

Receivable from GE Capital (debt assumption)
 

 

 
48.2

 
58.8

 

 

Investment in GE Capital
 

 

 
20.7

 
24.7

 

 

Goodwill & intangible assets
 
89.3

 
86.9

 
86.6

 
84.2

 
2.6

 
2.7

Contract assets
 
28.9

 
25.2

 
28.9

 
25.2

 

 

Other assets
 
34.7

 
35.0

 
20.0

 
18.7

 
24.0

 
25.4

Assets of businesses held for sale
 
4.1

 
1.7

 
3.8

 
1.6

 

 

Assets of discontinued operations
 
7.9

 
14.8

 

 

 
7.9

 
14.8

Total assets
 
$
355.5

 
$
365.2

 
$
276.8

 
$
277.9

 
$
160.5

 
$
183.0

Liabilities and equity
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings(c)
 
$
134.4

 
$
136.2

 
$
81.9

 
$
79.3

 
$
102.9

 
$
117.3

Investment contracts, insurance liabilities and
 
 
 
 
 
 
 
 
 
 
 
 
insurance annuity benefits
 
26.5

 
26.1

 

 

 
27.0

 
26.5

Non-current compensation and benefits
 
42.6

 
43.8

 
41.6

 
42.8

 
1.0

 
1.0

Other liabilities
 
70.9

 
73.8

 
73.4

 
74.9

 
7.6

 
9.0

Liabilities of businesses held for sale
 
1.2

 
0.7

 
1.2

 
0.7

 

 

Liabilities of discontinued operations
 
0.9

 
4.2

 

 

 
0.9

 
4.1

Redeemable noncontrolling interests
 
3.2

 
3.0

 
3.2

 
3.0

 

 

GE shareowners' equity
 
74.1

 
75.8

 
74.1

 
75.8

 
20.7

 
24.7

Noncontrolling interests
 
1.6

 
1.7

 
1.3

 
1.4

 
0.3

 
0.3

Total liabilities and equity
 
$
355.5

 
$
365.2

 
$
276.8

 
$
277.9

 
$
160.5

 
$
183.0

(a)
Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis.
(b)
At June 30, 2017, GE Capital maintained liquidity sources of $36.9 billion that consisted of cash and equivalents of $29.8 billion, high-quality investments of $6.5 billion and cash and equivalents of $0.5 billion classified as assets of discontinued operations.  Additionally, at June 30, 2017, GE has $20 billion of committed unused credit lines. Credit lines maintained at GE Company since December 2015, but can be drawn and lent to GE Capital upon request.
(c)
GE Capital borrowings includes commercial paper of $5 billion for both periods ended June 30, 2017, and December 31, 2016.

Amounts may not add due to rounding

"GE Capital" means GE Capital Global Holdings, LLC (GECGH) and its predecessor General Electric Capital Corporation (GECC) and all of their affiliates and associated companies. Separate information is shown for "GE" and "Financial Services (GE Capital)." Transactions between GE and GE Capital have been eliminated from the "Consolidated" column. See Note 1 to the 2016 consolidated financial statements at www.ge.com/ar2016 for further information about consolidation matters.


7



GENERAL ELECTRIC COMPANY
Financial Measures That Supplement GAAP


We sometimes use financial measures derived from consolidated financial information but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain of these are considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules. The following non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure.

Industrial operating and GE Capital earnings (loss) from continuing operations and EPS
Industrial operating + Verticals earnings and EPS
Industrial operating profit and operating profit margin (excluding certain items)
Industrial organic operating profit
Industrial structural costs
Industrial segment organic revenues
Industrial cash flows from operating activities (Industrial CFOA) and Industrial CFOA excluding deal taxes and GE Pension Plan funding
2017 operating framework including 2017 Industrial operating + Verticals EPS target

The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures follow. Certain columns, rows or percentages within these reconciliations may not add or recalculate due to the use of rounded numbers. Totals and percentages presented are calculated from the underlying numbers in millions.

8



INDUSTRIAL OPERATING AND GE CAPITAL EARNINGS (LOSS) FROM CONTINUING OPERATIONS AND EPS
 
 
Three months ended June 30
(Dollars in millions; except per share amounts)
 
2017

 
2016

 
V%

 
 
 
 
 
 
 
Consolidated earnings from continuing operations attributable to GE common shareowners (GAAP)
 
$
1,338

 
$
3,300

 
(59
)%
Non-operating pension cost
 
560

 
511

 
 
Tax effect on non-operating pension cost(a)
 
(196
)
 
(179
)
 
 
Adjustment: non-operating pension cost (net of tax)
 
364

 
332

 
 
Operating earnings (Non-GAAP)
 
$
1,702

 
$
3,632

 
(53
)%
 
 
 
 
 
 
 
Adjustment: GE Capital (loss) from continuing operations attributable to GE common shareowners
 
(172
)
 
(600
)
 
 
Industrial operating earnings (Non-GAAP)
 
$
1,873

 
$
4,232

 
(56
)%
 
 
 
 
 
 
 
Earnings (loss) per share (EPS) - diluted(b)
 
 
 
 
 
 
Consolidated EPS from continuing operations attributable to GE common shareowners (GAAP)
 
$
0.15

 
$
0.36

 
(58
)%
Adjustment: non-operating pension cost (net of tax)
 
0.04

 
0.04

 
 
Operating EPS (Non-GAAP)
 
$
0.19

 
$
0.39

 
(51
)%
 
 
 
 
 
 
 
Adjustment: GE Capital EPS from continuing operations attributable to GE common shareowners (GAAP)
 
(0.02
)
 
(0.07
)
 
71
 %
Industrial operating EPS (Non-GAAP)
 
$
0.21

 
$
0.46

 
(54
)%
(a)
The tax effect on non-operating pension cost was calculated using a 35% U.S. federal statutory tax rate, based on its applicability to such cost.
(b)
Earnings (loss) per share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.

Operating earnings (loss) excludes non-service related pension cost of our principal pension plans comprising interest cost, expected return on plan assets and amortization of actuarial gains/losses. The service cost, prior service cost and any curtailment gain or loss components of our principal pension plans are included in operating earnings. We believe that these components of pension cost better reflect the ongoing service-related cost of providing pension benefits to our employees. As such, we believe that our measure of operating earnings (loss) provides management and investors with a useful measure of the operational results of our business. Other components of GAAP pension cost are mainly driven by capital allocation decisions and market performance, and we manage these separately from the operational performance of our businesses. Neither GAAP nor operating pension cost are necessarily indicative of the current or future cash flow requirements related to our pension plans. We believe that this measure, considered along with the corresponding GAAP measure, provides management and investors with additional information for comparison of our operating results to the operating results of other companies. We also believe that presenting operating earnings separately for our industrial businesses provides management and investors with useful information about the relative size of our industrial and financial services businesses in relation to the total company.

9



INDUSTRIAL OPERATING + VERTICALS EARNINGS AND EPS
 
 
Three months ended June 30
(Dollars in millions; except per share amounts)
 
2017

 
2016

 
V%

GE Capital earnings (loss) from continuing operations attributable to GE common shareowners (GAAP)
 
$
(172
)
 
$
(600
)
 
71
 %
Adjustment: GE Capital other continuing earnings (loss) (Other Capital)
 
(716
)
 
(1,051
)
 
 
Verticals earnings(a)
 
$
544

 
$
452

 
20
 %
Industrial operating earnings (Non-GAAP)
 
1,873

 
4,232

 
(56
)%
Industrial operating earnings + Verticals earnings (Non-GAAP)
 
$
2,418

 
$
4,684

 
(48
)%
Earnings (loss) per share (EPS) - diluted(b)
 
 
 
 
 
 
GE Capital EPS from continuing operations attributable to GE common shareowners (GAAP)
 
(0.02
)
 
(0.07
)
 
71
 %
Adjustment: GE Capital other continuing EPS (Other Capital EPS)
 
(0.08
)
 
(0.11
)
 
 
Verticals EPS
 
$
0.06

 
$
0.05

 
20
 %
Industrial operating EPS (Non-GAAP)
 
0.21

 
0.46

 
(54
)%
Industrial operating + Verticals EPS (Non-GAAP)
 
$
0.28

 
$
0.51

 
(45
)%
(a)
Verticals include businesses expected to be retained (GECAS, Energy Financial Services, Industrial Finance, and run-off Insurance), including allocated corporate after-tax costs of $25 million in both the three months ended June 30, 2017 and 2016.
(b)
Earnings (loss) per share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.

As described above, Verticals represents the GE Capital businesses that we expect to retain. We believe that presenting Industrial operating + Verticals earnings per share amounts provides management and investors with a useful measure to evaluate the performance of the businesses we expect to retain after the disposition of most of our financial services business.

10



INDUSTRIAL OPERATING PROFIT AND OPERATING PROFIT MARGIN (EXCLUDING CERTAIN ITEMS)
 
 
Three months ended June 30
(Dollars in millions)
 
2017

 
2016

Revenues
 
 
 
 
GE total revenues and other income
 
$
27,421

 
$
30,604

Less: GE Capital earnings (loss) from continuing operations
 
(172
)
 
(600
)
GE revenues and other income excluding GE Capital earnings (loss) (Industrial revenues) (GAAP)
 
$
27,593

 
$
31,204

Less: gains on disposals
 

 
3,129

Adjusted Industrial revenues (Non-GAAP)
 
$
27,593

 
$
28,075

Costs
 
 
 
 
GE total costs and expenses
 
$
25,883

 
$
26,756

Less: GE interest and other financial charges
 
637

 
567

Industrial costs excluding interest and other financial charges (GAAP)
 
$
25,247

 
$
26,189

Less: non-operating pension cost
 
560

 
511

Less: restructuring and other charges
 
709

 
1,188

Less: noncontrolling interests
 
18

 
82

Adjusted Industrial costs (Non-GAAP)
 
$
23,960

 
$
24,408

Industrial profit (GAAP)
 
$
2,346

 
$
5,015

Industrial margins (GAAP)
 
8.5
%
 
16.1
%
 
 
 
 
 
Industrial operating profit (Non-GAAP)
 
$
3,633

 
$
3,667

Industrial operating profit margins (Non-GAAP)
 
13.2
%
 
13.1
%


INDUSTRIAL ORGANIC OPERATING PROFIT
 
 
 
 
Three months ended June 30
(Dollars in millions)
 
2017

 
2016

 
V%

 
 
 
 
 
 
 
Industrial operating profit (Non-GAAP)
 
$
3,633

 
$
3,667

 
(1
)%
Adjustments:
 
 

 
 

 
 
Acquisitions
 
(47
)
 
(4
)
 
 
Business dispositions