EX-99 2 ge3q2017ex99.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 September 30
 
2017

 
2016

 
V%

 
 
2017

 
2016

 
V%

 
2017

 
2016

 
V%

Revenues and other income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales of goods and services
 
$
29,429

 
$
26,814

 
10
 %
 
 
$
29,438

 
$
26,934

 
9
 %
 
$
39

 
$
34

 
15
 %
Other income
 
2,146

 
227

 
 
 
 
2,141

 
213

 
 
 

 

 
 
GE Capital earnings (loss) from continuing operations
 

 

 
 
 
 
24

 
26

 
 
 

 

 
 
GE Capital revenues from services
 
1,898

 
2,224

 
 
 
 

 

 
 
 
2,359

 
2,566

 
 
Total revenues and other income
 
33,472

 
29,266

 
14
 %
 
 
31,603

 
27,172

 
16
 %
 
2,397

 
2,600

 
(8
)%
Costs and expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
24,093

 
20,965

 
 
 
 
23,521

 
20,545

 
 
 
621

 
574

 
 
Selling, general and administrative expenses
 
4,855

 
4,343

 
 
 
 
4,717

 
3,880

 
 
 
285

 
631

 
 
Interest and other financial charges
 
1,232

 
961

 
 
 
 
718

 
483

 
 
 
790

 
617

 
 
Investment contracts, insurance losses and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
insurance annuity benefits
 
617

 
684

 
 
 
 

 

 
 
 
640

 
700

 
 
Other costs and expenses(b)
 
1,208

 
238

 
 
 
 
947

 

 
 
 
271

 
241

 
 
Total costs and expenses
 
32,006

 
27,191

 
18
 %
 
 
29,903

 
24,909

 
20
 %
 
2,608

 
2,763

 
(6
)%
Earnings (loss) from continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
before income taxes
 
1,466

 
2,074

 
(29
)%
 
 
1,701

 
2,263

 
(25
)%
 
(211
)
 
(163
)
 
(29
)%
Benefit (provision) for income taxes
 
334

 
(18
)
 
 
 
 
64

 
(241
)
 
 
 
270

 
223

 
 
Earnings (loss) from continuing operations
 
1,800

 
2,056

 
(12
)%
 
 
1,765

 
2,022

 
(13
)%
 
59

 
60

 
(2
)%
Earnings (loss) from discontinued
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
operations, net of taxes
 
(106
)
 
(105
)
 
 
 
 
(105
)
 
(103
)
 
 
 
(106
)
 
(105
)
 
 
Net earnings (loss)
 
1,694

 
1,951

 
(13
)%
 
 
1,660

 
1,918

 
(13
)%
 
(47
)
 
(45
)
 
(4
)%
Less net earnings (loss) attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests
 
(142
)
 
(76
)
 
 
 
 
(140
)
 
(76
)
 
 
 
(2
)
 

 
 
Net earnings (loss) attributable to the Company
 
1,836

 
2,027

 
(9
)%
 
 
1,800

 
1,994

 
(10
)%
 
(46
)
 
(45
)
 
(2
)%
Preferred stock dividends
 
(36
)
 
(33
)
 
 
 
 

 

 
 
 
(36
)
 
(33
)
 
 
Net earnings (loss) attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GE common shareowners
 
$
1,800

 
$
1,994

 
(10
)%
 
 
$
1,800

 
$
1,994

 
(10
)%
 
$
(81
)
 
$
(78
)
 
(4
)%
Amounts attributable to GE common
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
shareowners:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) from continuing operations
 
$
1,800

 
$
2,056

 
(12
)%
 
 
$
1,765

 
$
2,022

 
(13
)%
 
$
59

 
$
60

 
(2
)%
Less net earnings (loss) attributable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
to noncontrolling interests, continuing operations
 
(141
)
 
(74
)
 
 
 
 
(140
)
 
(76
)
 
 
 
(1
)
 
1

 
 
Earnings (loss) from continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
attributable to the Company
 
1,941

 
2,131

 
(9
)%
 
 
1,905

 
2,097

 
(9
)%
 
60

 
59

 
2
 %
Preferred stock dividends
 
(36
)
 
(33
)
 
 
 
 

 

 
 
 
(36
)
 
(33
)
 
 
Earnings (loss) from continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
attributable to GE common shareowners
 
1,905

 
2,097

 
(9
)%
 
 
1,905

 
2,097

 
(9
)%
 
24

 
26

 
(8
)%
Earnings (loss) from discontinued
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
operations, net of taxes
 
(106
)
 
(105
)
 
 
 
 
(105
)
 
(103
)
 
 
 
(106
)
 
(105
)
 
 
Less net earnings (loss) attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests, discontinued operations
 
(1
)
 
(2
)
 
 
 
 

 

 
 
 
(1
)
 
(2
)
 
 
Net earnings (loss) attributable to GE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
common shareowners
 
$
1,800

 
$
1,994

 
(10
)%
 
 
$
1,800

 
$
1,994

 
(10
)%
 
$
(81
)
 
$
(78
)
 
(4
)%
Per-share amounts - earnings (loss) from
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings (loss) per share
 
$
0.22

 
$
0.23

 
(4
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings (loss) per share
 
$
0.22

 
$
0.24

 
(8
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Per-share amounts - net earnings (loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings (loss) per share
 
$
0.21

 
$
0.22

 
(5
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings (loss) per share
 
$
0.21

 
$
0.22

 
(5
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total average equivalent shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted
 
8,732

 
9,016

 
(3
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
8,665

 
8,904

 
(3
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
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.
(b)
GE amount represents a goodwill impairment charge recognized in the third quarter of 2017.
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)
Nine months ended September 30
 
2017

 
2016

 
V%

 
 
2017

 
2016

 
V%

 
2017

 
2016

 
V%

Revenues and other income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales of goods and services
 
$
81,895

 
$
80,156

 
2
 %
 
 
$
82,123

 
$
80,490

 
2
 %
 
$
101

 
$
88

 
15
 %
Other income
 
2,611

 
3,385

 
 

 
 
2,578

 
3,359

 
 

 

 

 
 
GE Capital earnings (loss) from continuing operations
 

 

 
 

 
 
(195
)
 
(1,466
)
 
 

 

 

 
 
GE Capital revenues from services
 
6,184

 
7,063

 
 

 
 

 

 
 

 
7,424

 
8,168

 
 
Total revenues and other income
 
90,691

 
90,604

 
 %
 
 
84,506

 
82,382

 
3
 %
 
7,525

 
8,256

 
(9
)%
Costs and expenses
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
Cost of sales
 
66,246

 
63,710

 
 

 
 
64,822

 
62,394

 
 

 
1,753

 
1,738

 
 
Selling, general and administrative expenses
 
13,649

 
13,833

 
 

 
 
12,656

 
12,094

 
 

 
1,358

 
2,238

 
 
Interest and other financial charges
 
3,545

 
4,023

 
 

 
 
1,918

 
1,490

 
 

 
2,373

 
3,006

 
 
Investment contracts, insurance losses and
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
insurance annuity benefits
 
1,908

 
2,101

 
 

 
 

 

 
 

 
1,958

 
2,186

 
 
Other costs and expenses(b)
 
1,531

 
801

 
 

 
 
947

 

 
 

 
629

 
822

 
 
Total costs and expenses
 
86,879

 
84,467

 
3
 %
 
 
80,344

 
75,977

 
6
 %
 
8,070

 
9,990

 
(19
)%
Earnings (loss) from continuing operations
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
before income taxes
 
3,812

 
6,137

 
(38
)%
 
 
4,162

 
6,405

 
(35
)%
 
(545
)
 
(1,734
)
 
69
 %
Benefit (provision) for income taxes
 
303

 
(302
)
 
 

 
 
(297
)
 
(1,034
)
 
 

 
600

 
732

 
 
Earnings (loss) from continuing operations
 
4,115

 
5,835

 
(29
)%
 
 
3,865

 
5,370

 
(28
)%
 
55

 
(1,002
)
 
F

Earnings (loss) from discontinued
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
operations, net of taxes
 
(490
)
 
(954
)
 
 

 
 
(497
)
 
(956
)
 
 

 
(494
)
 
(954
)
 
 
Net earnings (loss)
 
3,624

 
4,881

 
(26
)%
 
 
3,368

 
4,414

 
(24
)%
 
(439
)
 
(1,956
)
 
78
 %
Less net earnings (loss) attributable to
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
noncontrolling interests
 
(231
)
 
(283
)
 
 

 
 
(236
)
 
(275
)
 
 

 
5

 
(8
)
 
 
Net earnings (loss) attributable to the Company
 
3,856

 
5,164

 
(25
)%
 
 
3,604

 
4,689

 
(23
)%
 
(443
)
 
(1,948
)
 
77
 %
Preferred stock dividends
 
(252
)
 
(474
)
 
 

 
 

 

 
 

 
(252
)
 
(474
)
 
 
Net earnings (loss) attributable to
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
GE common shareowners
 
$
3,604

 
$
4,689

 
(23
)%
 
 
$
3,604

 
$
4,689

 
(23
)%
 
$
(695
)
 
$
(2,422
)
 
71
 %
Amounts attributable to GE common
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
shareowners:
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
Earnings (loss) from continuing operations
 
$
4,115

 
$
5,835

 
(29
)%
 
 
$
3,865

 
$
5,370

 
(28
)%
 
$
55

 
$
(1,002
)
 
F

Less net earnings (loss) attributable
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
to noncontrolling interests, continuing operations
 
(238
)
 
(285
)
 
 

 
 
(236
)
 
(275
)
 
 

 
(2
)
 
(10
)
 
 
Earnings (loss) from continuing operations
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
attributable to the Company
 
4,352

 
6,120

 
(29
)%
 
 
4,101

 
5,645

 
(27
)%
 
57

 
(992
)
 
F

Preferred stock dividends
 
(252
)
 
(474
)
 
 

 
 

 

 
 

 
(252
)
 
(474
)
 
 
Earnings (loss) from continuing operations
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
attributable to GE common shareowners
 
4,101

 
5,645

 
(27
)%
 
 
4,101

 
5,645

 
(27
)%
 
(195
)
 
(1,466
)
 
87
 %
Earnings (loss) from discontinued
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
operations, net of taxes
 
(490
)
 
(954
)
 
 

 
 
(497
)
 
(956
)
 
 

 
(494
)
 
(954
)
 
 
Less net earnings (loss) attributable to
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
noncontrolling interests, discontinued operations
 
6

 
2

 
 

 
 

 

 
 

 
6

 
2

 
 
Net earnings (loss) attributable to GE
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
common shareowners
 
$
3,604

 
$
4,689

 
(23
)%
 
 
$
3,604

 
$
4,689

 
(23
)%
 
$
(695
)
 
$
(2,422
)
 
71
 %
Per-share amounts - earnings (loss) from
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
continuing operations
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings (loss) per share
 
$
0.47

 
$
0.61

 
(23
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings (loss) per share
 
$
0.47

 
$
0.62

 
(24
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Per-share amounts - net earnings (loss)
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings (loss) per share
 
$
0.41

 
$
0.51

 
(20
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings (loss) per share
 
$
0.41

 
$
0.51

 
(20
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total average equivalent shares
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted
 
8,774

 
9,201

 
(5
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
8,689

 
9,096

 
(4
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends declared per common share
 
$
0.72

 
$
0.69

 
4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis.
(b)
GE amount represents a goodwill impairment charge recognized in the third quarter of 2017.
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 September 30
 
Nine months ended September 30
(Dollars in millions)
 
2017

 
2016

 
V%

 
2017

 
2016

 
V%

Revenues(a)
 
 
 
 
 
 
 
 
 
 
 
 
Power(b)
 
$
8,679

 
$
8,995

 
(4
)%
 
$
26,569

 
$
25,664

 
4
 %
Renewable Energy
 
2,905

 
2,770

 
5
 %
 
7,406

 
6,533

 
13
 %
Oil & Gas
 
5,365

 
2,964

 
81
 %
 
11,475

 
9,497

 
21
 %
Aviation
 
6,816

 
6,300

 
8
 %
 
20,153

 
19,074

 
6
 %
Healthcare
 
4,724

 
4,482

 
5
 %
 
13,714

 
13,190

 
4
 %
Transportation
 
1,074

 
1,249

 
(14
)%
 
3,185

 
3,471

 
(8
)%
Lighting(b)
 
483

 
576

 
(16
)%
 
1,442

 
4,239

 
(66
)%
Total industrial segment revenues
 
30,046

 
27,335

 
10
 %
 
83,943

 
81,667

 
3
 %
Capital
 
2,397

 
2,600

 
(8
)%
 
7,525

 
8,256

 
(9
)%
Total segment revenues
 
32,444

 
29,936

 
8
 %
 
91,468

 
89,923

 
2
 %
Corporate items and eliminations(a)
 
1,028

 
(670
)
 
 
 
(777
)
 
681

 
 
Consolidated revenues
 
$
33,472

 
$
29,266

 
14
 %
 
$
90,691

 
$
90,604

 
 %
Segment profit (loss)(a)
 
 
 
 
 
 
 
 
 
 
 
 
Power(b)
 
$
611

 
$
1,259

 
(51
)%
 
$
2,526

 
$
2,924

 
(14
)%
Renewable Energy
 
257

 
202

 
27
 %
 
524

 
413

 
27
 %
Oil & Gas(c)
 
(36
)
 
353

 
U

 
325

 
981

 
(67
)%
Aviation
 
1,680

 
1,494

 
12
 %
 
4,856

 
4,366

 
11
 %
Healthcare
 
820

 
717

 
14
 %
 
2,289

 
2,130

 
7
 %
Transportation
 
276

 
309

 
(11
)%
 
634

 
747

 
(15
)%
Lighting(b)
 
23

 
(15
)
 
F

 
43

 
196

 
(78
)%
Total industrial segment profit
 
3,630

 
4,320

 
(16
)%
 
11,198

 
11,756

 
(5
)%
Capital
 
24

 
26

 
(8
)%
 
(195
)
 
(1,466
)
 
87
 %
Total segment profit (loss)
 
3,654

 
4,345

 
(16
)%
 
11,003

 
10,290

 
7
 %
Corporate items and eliminations(a)
 
(1,095
)
 
(1,524
)
 
 
 
(4,687
)
 
(2,120
)
 
 
GE interest and other financial charges
 
(718
)
 
(483
)
 
 
 
(1,918
)
 
(1,490
)
 
 
GE benefit (provision) for income taxes
 
64

 
(241
)
 
 
 
(297
)
 
(1,034
)
 
 
Earnings (loss) from continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
attributable to GE common shareowners
 
1,905

 
2,097

 
(9
)%
 
4,101

 
5,645

 
(27
)%
Earnings (loss) from discontinued operations,
 
 
 
 
 
 
 
 
 
 
 
 
net of taxes
 
(106
)
 
(105
)
 
(1
)%
 
(490
)
 
(954
)
 
49
 %
Less net earnings attributable to
 
 
 
 
 
 
 
 
 
 
 
 
noncontrolling interests, discontinued operations
 
(1
)
 
(2
)
 
 
 
6

 
2

 
 
Earnings (loss) from discontinued operations,
 
 
 
 
 
 
 
 
 
 
 
 
net of tax and noncontrolling interests
 
(105
)
 
(103
)
 
(2
)%
 
(497
)
 
(956
)
 
48
 %
Consolidated net earnings (loss)
 
 
 
 
 
 
 
 
 
 
 
 
attributable to GE common shareowners
 
$
1,800

 
$
1,994

 
(10
)%
 
$
3,604

 
$
4,689

 
(23
)%
(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, income taxes, and preferred stock dividends 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 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 is 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 2017, the Energy Connections business within the former Energy Connections & Lighting segment has been combined with the Power segment and presented as one reporting segment called Power. As a result of this combination, our GE Lighting and Current, powered by GE (Current) businesses, have been reported as a separate segment called Lighting.
(c)
Oil & Gas segment profit (loss) includes $(267) million of restructuring and other charges in the three and nine months ended September 30, 2017.  Excluding this amount, Oil & Gas operating profit was $231 million and $593 million in the three and nine months ended September 30, 2017, respectively.


Amounts may not add due to rounding

6



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

 
December 31,

 
September 30,

 
December 31,

 
September 30,

 
December 31,

(Dollars in billions)
 
2017

 
2016

 
2017

 
2016

 
2017

 
2016

Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and marketable securities(b)
 
$
78.6

 
$
92.4

 
$
13.2

 
$
10.7

 
$
65.4

 
$
81.8

Receivables
 
25.0

 
24.1

 
14.7

 
12.7

 

 

Inventories
 
25.8

 
22.4

 
25.8

 
22.3

 
0.1

 
0.1

GE Capital financing receivables - net
 
12.2

 
12.2

 

 

 
24.9

 
26.0

Property, plant & equipment - net
 
54.1

 
50.5

 
23.7

 
19.1

 
31.3

 
32.2

Receivable from GE Capital (debt assumption)
 

 

 
42.6

 
58.8

 

 

Investment in GE Capital
 

 

 
20.9

 
24.7

 

 

Goodwill & intangible assets
 
108.5

 
86.9

 
105.9

 
84.2

 
2.6

 
2.7

Contract assets
 
29.8

 
25.2

 
29.8

 
25.2

 

 

Other assets
 
34.8

 
35.0

 
20.3

 
18.7

 
23.8

 
25.4

Assets of businesses held for sale
 
2.4

 
1.7

 
2.2

 
1.6

 

 

Assets of discontinued operations
 
6.8

 
14.8

 

 

 
6.8

 
14.8

Total assets
 
$
378.0

 
$
365.2

 
$
299.1

 
$
277.9

 
$
154.9

 
$
183.0

Liabilities and equity
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings(c)
 
$
136.4

 
$
136.2

 
$
83.8

 
$
79.3

 
$
97.5

 
$
117.3

Investment contracts, insurance liabilities and
 
 
 
 
 
 
 
 
 
 
 
 
insurance annuity benefits
 
26.6

 
26.1

 

 

 
27.1

 
26.5

Non-current compensation and benefits
 
42.4

 
43.8

 
41.4

 
42.8

 
1.0

 
1.0

Other liabilities
 
73.6

 
73.8

 
75.9

 
74.9

 
7.3

 
9.0

Liabilities of businesses held for sale
 
0.6

 
0.7

 
0.6

 
0.7

 

 

Liabilities of discontinued operations
 
1.0

 
4.2

 

 

 
1.0

 
4.1

Redeemable noncontrolling interests
 
3.4

 
3.0

 
3.4

 
3.0

 

 

GE shareowners' equity
 
76.0

 
75.8

 
76.0

 
75.8

 
20.9

 
24.7

Noncontrolling interests
 
18.0

 
1.7

 
17.8

 
1.4

 
0.2

 
0.3

Total liabilities and equity
 
$
378.0

 
$
365.2

 
$
299.1

 
$
277.9

 
$
154.9

 
$
183.0

(a)
Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis.
(b)
At September 30, 2017, GE Capital maintained liquidity sources of $32.5 billion that consisted of cash and equivalents of $27.0 billion, high-quality investments of $5.0 billion and cash and equivalents of $0.5 billion classified as assets of discontinued operations.  Additionally, at September 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 September 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 segment organic revenues
Industrial cash flows from operating activities (Industrial CFOA) and Industrial CFOA excluding deal taxes and GE Pension Plan funding

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 September 30
(Dollars in millions; except per share amounts)
 
2017

 
2016

 
V%

 
 
 
 
 
 
 
Consolidated earnings from continuing operations attributable to GE common shareowners (GAAP)
 
$
1,905

 
$
2,097

 
(9
)%
Non-operating pension cost
 
570

 
511

 
 
Tax effect on non-operating pension cost(a)
 
(199
)
 
(179
)
 
 
Adjustment: non-operating pension cost (net of tax)
 
371

 
332

 
 
Operating earnings (Non-GAAP)
 
$
2,276

 
$
2,429

 
(6
)%
 
 
 
 
 
 
 
Adjustment: GE Capital earnings (loss) from continuing operations attributable to GE common shareowners
 
24

 
26

 
 
Industrial operating earnings (Non-GAAP)
 
$
2,252

 
$
2,404

 
(6
)%
 
 
 
 
 
 
 
Earnings (loss) per share (EPS) - diluted(b)
 
 
 
 
 
 
Consolidated EPS from continuing operations attributable to GE common shareowners (GAAP)
 
$
0.22

 
$
0.23

 
(4
)%
Adjustment: non-operating pension cost (net of tax)
 
0.04

 
0.04

 
 
Operating EPS (Non-GAAP)
 
$
0.26

 
$
0.27

 
(4
)%
 
 
 
 
 
 
 
Adjustment: GE Capital EPS from continuing operations attributable to GE common shareowners (GAAP)
 

 

 
 %
Industrial operating EPS (Non-GAAP)
 
$
0.26

 
$
0.27

 
(4
)%
(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 September 30
(Dollars in millions; except per share amounts)
 
2017

 
2016

 
V%

GE Capital earnings (loss) from continuing operations attributable to GE common shareowners (GAAP)
 
$
24

 
$
26

 
(8
)%
Adjustment: GE Capital other continuing earnings (loss) (Other Capital)(a)
 
(275
)
 
(441
)
 
38
 %
Verticals earnings(b)
 
$
299

 
$
466

 
(36
)%
Industrial operating earnings (Non-GAAP)
 
2,252

 
2,404

 
(6
)%
Industrial operating earnings + Verticals earnings (Non-GAAP)
 
$
2,550

 
$
2,870

 
(11
)%
Earnings (loss) per share (EPS) - diluted(c)
 
 
 
 
 
 
GE Capital EPS from continuing operations attributable to GE common shareowners (GAAP)
 

 

 
 %
Adjustment: GE Capital other continuing EPS (Other Capital EPS)
 
(0.03
)
 
(0.05
)
 
 
Verticals EPS
 
$
0.03

 
$
0.05

 
(40
)%
Industrial operating EPS (Non-GAAP)
 
0.26

 
0.27

 
(4
)%
Industrial operating + Verticals EPS (Non-GAAP)
 
$
0.29

 
$
0.32

 
(9
)%
(a)
Includes interest on non-Verticals borrowings, restructuring costs and allocations of GE and GE Capital headquarters costs in excess of those allocated to the Verticals.
(b)
Verticals include businesses expected to be retained (GECAS, Energy Financial Services, Industrial Finance, and run-off insurance activities), including allocated corporate after-tax costs of $25 million in the three months ended September 30, 2017 and 2016.
(c)
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.
INDUSTRIAL OPERATING PROFIT AND OPERATING PROFIT MARGIN (EXCLUDING CERTAIN ITEMS)
 
 
Three months ended September 30
(Dollars in millions)
 
2017

 
2016

Revenues
 
 
 
 
GE total revenues and other income
 
$
31,603

 
$
27,172

Less: GE Capital earnings (loss) from continuing operations
 
24

 
26

GE revenues and other income excluding GE Capital earnings (loss) (Industrial revenues) (GAAP)
 
$
31,580

 
$
27,146

Less: gains on disposals
 
1,897

 
208

Adjusted Industrial revenues (Non-GAAP)
 
$
29,682

 
$
26,938

Costs
 
 
 
 
GE total costs and expenses
 
$
29,903

 
$
24,909

Less: GE interest and other financial charges
 
718

 
483

Industrial costs excluding interest and other financial charges (GAAP)
 
$
29,185

 
$
24,426

Less: non-operating pension cost
 
570

 
511

Less: restructuring and other charges
 
2,294

 
683

Less: noncontrolling interests
 
140

 
76

Adjusted Industrial costs (Non-GAAP)
 
$
26,181

 
$
23,156

Industrial profit (GAAP)
 
$
2,394

 
$
2,720

Industrial margins (GAAP)
 
7.6
%
 
10.0
%
 
 
 
 
 
Industrial operating profit (Non-GAAP)
 
$
3,501

 
$
3,782

Industrial operating profit margins (Non-GAAP)
 
11.8
%
 
14.0
%

We have presented our Industrial operating profit and operating profit margin excluding gains, non-operating pension cost, restructuring and other charges and noncontrolling interests. We believe that Industrial operating profit and operating profit margin adjusted for these items are meaningful measures because they increase the comparability of period-to-period results.






10



INDUSTRIAL SEGMENT ORGANIC REVENUES
 
 
Three months ended September 30
(Dollars in millions)
 
2017

 
2016

 
V%

Industrial segment revenues (GAAP)
 
$
30,046

 
$
27,335

 
10
 %
Less adjustments:
 
 
 
 
 
 
Acquisitions
 
2,865

 
6

 
 
Business dispositions
 
51

 
57