Date of Report (Date of earliest event reported) January 24, 2018 | ||||||
General Electric Company | ||||||
(Exact name of registrant as specified in its charter) | ||||||
New York | 001-00035 | 14-0689340 | ||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||
41 Farnsworth Street, Boston, MA | 02210 | |||||
(Address of principal executive offices) | (Zip Code) | |||||
Registrant's telephone number, including area code (617) 443-3000 | ||||||
(Former name or former address, if changed since last report.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter). | |
Emerging growth company ¨ | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. ¨ |
General Electric Company | |||
(Registrant) | |||
Date: January 24, 2018 | /s/ Jan R. Hauser | ||
Jan R. Hauser Vice President and Controller |
GE ANNOUNCES FOURTH QUARTER 2017 RESULTS |
• | 4Q’17 continuing operations EPS (GAAP) of $(1.15); full-year of $(0.68) |
• | 4Q’17 Industrial operating + Verticals EPS (non-GAAP) of $(1.23); full-year of $(0.45) |
• | Industrial + Verticals at low end of guidance excluding $(1.49) of charges for insurance-related items $(0.91), the Tax Cuts and Jobs Act (“U.S. tax reform”) $(0.40), and industrial portfolio items $(0.18) |
• | 4Q’17 GE CFOA of $7.0 billion; adjusted Industrial CFOA-a) (non-GAAP) of $7.8 billion; full-year adjusted Industrial CFOA of $9.7 billion |
• | Power continues to be challenging, Power segment profit down 88% |
• | Strong performance in Aviation and Healthcare |
• | $1.7 billion of structural cost-b) (non-GAAP) out in 2017 |
Fourth Quarter Results | Total Year Results | ||||||||||||||||||||||||||
(Dollars in millions; except per-share amounts) December 31 | 2017 | 2016 | Year on Year | 2017 | 2016 | Year on Year | |||||||||||||||||||||
GAAP Metrics | |||||||||||||||||||||||||||
Continuing Operations EPS | $ | (1.15 | ) | $ | 0.39 | U | $ | (0.68 | ) | $ | 1.00 | U | |||||||||||||||
Net Earnings EPS | (1.13 | ) | 0.39 | U | (0.72 | ) | 0.89 | U | |||||||||||||||||||
Total Revenues | 31,402 | 33,088 | (5 | ) | % | 122,092 | 123,693 | (1 | ) | % | |||||||||||||||||
Industrial Margin | 1.1 | % | 12.0 | % | (1,090 | ) | bps | 5.7 | % | 11.4 | % | (570 | ) | bps | |||||||||||||
GE CFOA | 6,990 | 11,618 | (40 | ) | % | 11,040 | 29,960 | (63 | ) | % | |||||||||||||||||
Non-GAAP Metrics | |||||||||||||||||||||||||||
Industrial Operating + Verticals EPS | $ | (1.23 | ) | $ | 0.46 | U | $ | (0.45 | ) | $ | 1.49 | U | |||||||||||||||
Industrial Segment Organic Revenues | 28,712 | 30,503 | (6 | ) | % | 109,430 | 109,296 | — | % | ||||||||||||||||||
Industrial Operating Profit/(Loss)-c) | 3,526 | 5,226 | (33 | ) | % | 13,868 | 15,558 | (11 | ) | % | |||||||||||||||||
Industrial Operating Profit/(Loss) Margin-c) | 11.2 | % | 16.8 | % | (560 | ) | bps | 12.1 | % | 14.0 | % | (190 | ) | bps | |||||||||||||
Adjusted Industrial CFOA-a) | 7,757 | 8,242 | (6 | ) | % | 9,698 | 11,610 | (16 | ) | % |
-a) | Excluding deal taxes and GE Pension Plan funding, and with BHGE on a dividend basis |
-b) | Excludes impact of acquisition and disposition activity in Industrial segments |
-c) | Excludes non-operating pension, gains/(losses) and restructuring & other |
Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||
(in millions) | 2017 | 2016 | Year on Year | 2017 | 2016 | Year on Year | ||||||||||
Orders | $ 10,236 | $ | 13,174 | (25) % | $ | 36,974 | $ 42,594 | (13) % | ||||||||
Revenue | 9,421 | 11,131 | (15) % | 35,990 | 36,795 | (2) % | ||||||||||
Segment Profit/(Loss) | 260 | 2,167 | (88) % | 2,786 | 5,091 | (45) % | ||||||||||
Segment Profit/(Loss) Margin | 2.8% | 19.5% | (16.7) pts | 7.7% | 13.8% | (6.1) pts |
Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||
(in millions) | 2017 | 2016 | Year on Year | 2017 | 2016 | Year on Year | ||||||||||
Orders | $ 3,252 | $ | 3,322 | (2) % | $ | 10,368 | $ 10,259 | 1 % | ||||||||
Revenue | 2,875 | 2,500 | 15 % | 10,280 | 9,033 | 14 % | ||||||||||
Segment Profit/(Loss) | 203 | 163 | 25 % | 727 | 576 | 26 % | ||||||||||
Segment Profit/(Loss) Margin | 7.1% | 6.5% | 0.6 pts | 7.1% | 6.4% | 0.7 pts |
Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||
(in millions) | 2017 | 2016 | Year on Year | 2017 | 2016 | Year on Year | ||||||||||
Orders | $ 5,750 | $ | 3,320 | 73 % | $ | 17,224 | $ 11,061 | 56 % | ||||||||
Revenue | 5,756 | 3,402 | 69 % | 17,231 | 12,898 | 34 % | ||||||||||
Adjusted Segment Profit/(Loss)-a) | 307 | 411 | (25) % | 899 | 1,392 | (35) % | ||||||||||
Adjusted Segment Profit/(Loss) Margin-a) | 5.3% | 12.1% | (6.8) pts | 5.2% | 10.8% | (5.6) pts |
-a) | Excluded restructuring and other charges; O&G segment profit/(loss) including these items was $(105) million for 4Q and $220 million for the year. |
Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||
(in millions) | 2017 | 2016 | Year on Year | 2017 | 2016 | Year on Year | |||||||||||
Orders | $ 7,979 | $ | 7,178 | 11 | % | $ | 29,527 | $ 26,335 | 12 % | ||||||||
Revenue | 7,222 | 7,187 | — | % | 27,375 | 26,261 | 4 % | ||||||||||
Segment Profit/(Loss) | 1,786 | 1,749 | 2 | % | 6,642 | 6,115 | 9 % | ||||||||||
Segment Profit/(Loss) Margin | 24.7% | 24.3% | 0.4 pts | 24.3% | 23.3% | 1.0 pts |
Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||
(in millions) | 2017 | 2016 | Year on Year | 2017 | 2016 | Year on Year | ||||||||||
Orders | $ 5,854 | $ | 5,384 | 9 % | $ | 20,428 | $ 19,245 | 6 % | ||||||||
Revenue | 5,402 | 5,101 | 6 % | 19,116 | 18,291 | 5 % | ||||||||||
Segment Profit/(Loss) | 1,159 | 1,030 | 13 % | 3,448 | 3,161 | 9 % | ||||||||||
Segment Profit/(Loss) Margin | 21.5% | 20.2% | 1.3 pts | 18.0% | 17.3% | 0.7 pts |
Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||
(in millions) | 2017 | 2016 | Year on Year | 2017 | 2016 | Year on Year | ||||||||||
Orders | $ 2,104 | $ | 1,352 | 56 % | $ | 5,114 | $ 3,378 | 51 % | ||||||||
Revenue | 993 | 1,243 | (20) % | 4,178 | 4,713 | (11) % | ||||||||||
Segment Profit/(Loss) | 189 | 317 | (40) % | 824 | 1,064 | (23) % | ||||||||||
Segment Profit/(Loss) Margin | 19.0% | 25.5% | (6.5) pts | 19.7% | 22.6% | (2.9) pts |
Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||
(in millions) | 2017 | 2016 | Year on Year | 2017 | 2016 | Year on Year | ||||||||||
Orders | $ 298 | $ | 270 | 10 % | $ | 1,155 | $ 599 | 93 % | ||||||||
Revenue | 546 | 584 | (7) % | 1,987 | 4,823 | (59) % | ||||||||||
Segment Profit/(Loss) | 50 | 3 | F | 93 | 199 | (53) % | ||||||||||
Segment Profit/(Loss) Margin | 9.2% | 0.5% | 8.7 pts | 4.7% | 4.1% | 0.6 pts |
Three months ended December 31 | Twelve months ended December 31 | |||||||
(in millions) | 2017 | 2017 | ||||||
Verticals | $ (7,585) | $ (6,208) | ||||||
Other continuing | 1,016 | (557) | ||||||
Capital | (6,569) | (6,765) | ||||||
Discontinued operations | 182 | (318) | ||||||
GE Capital | $ | (6,388 | ) | $ | (7,083 | ) |
GENERAL ELECTRIC COMPANY | ||||||||||||||||||||||||||||||||||
CONDENSED STATEMENT OF EARNINGS (LOSS) (UNAUDITED) | ||||||||||||||||||||||||||||||||||
Consolidated | GE(a) | Financial Services (GE Capital) | ||||||||||||||||||||||||||||||||
Three months ended December 31 | 2017 | 2016 | V% | 2017 | 2016 | V% | 2017 | 2016 | V% | |||||||||||||||||||||||||
Revenues and other income | ||||||||||||||||||||||||||||||||||
Sales of goods and services | $ | 31,297 | $ | 30,234 | 4 | % | $ | 31,356 | $ | 30,345 | 3 | % | $ | 29 | $ | 27 | 7 | % | ||||||||||||||||
Other income (loss) | (987 | ) | 619 | (1,142 | ) | 733 | — | — | ||||||||||||||||||||||||||
GE Capital earnings (loss) from continuing operations | — | — | (6,569 | ) | 215 | — | — | |||||||||||||||||||||||||||
GE Capital revenues from services | 1,091 | 2,235 | — | — | 1,516 | 2,622 | ||||||||||||||||||||||||||||
Total revenues and other income | 31,402 | 33,088 | (5 | )% | 23,645 | 31,294 | (24 | )% | 1,545 | 2,649 | (42 | )% | ||||||||||||||||||||||
Costs and expenses | ||||||||||||||||||||||||||||||||||
Cost of sales | 25,688 | 23,773 | 25,230 | 23,318 | 546 | 593 | ||||||||||||||||||||||||||||
Selling, general and administrative expenses | 4,631 | 4,543 | 4,446 | 4,029 | 318 | 709 | ||||||||||||||||||||||||||||
Interest and other financial charges | 1,324 | 1,002 | 834 | 536 | 772 | 784 | ||||||||||||||||||||||||||||
Investment contracts, insurance losses and | ||||||||||||||||||||||||||||||||||
insurance annuity benefits | 10,260 | 696 | — | — | 10,255 | 674 | ||||||||||||||||||||||||||||
Other costs and expenses(b) | 2,101 | 182 | 217 | — | 1,743 | 191 | ||||||||||||||||||||||||||||
Total costs and expenses | 44,004 | 30,196 | 46 | % | 30,729 | 27,883 | 10 | % | 13,634 | 2,952 | U | |||||||||||||||||||||||
Earnings (loss) from continuing operations | ||||||||||||||||||||||||||||||||||
before income taxes | (12,603 | ) | 2,893 | U | (7,084 | ) | 3,411 | U | (12,088 | ) | (303 | ) | U | |||||||||||||||||||||
Benefit (provision) for income taxes | 2,740 | 766 | (2,962 | ) | 67 | 5,702 | 699 | |||||||||||||||||||||||||||
Earnings (loss) from continuing operations | (9,863 | ) | 3,659 | U | (10,046 | ) | 3,478 | U | (6,386 | ) | 396 | U | ||||||||||||||||||||||
Earnings (loss) from discontinued | ||||||||||||||||||||||||||||||||||
operations, net of taxes | 182 | — | 182 | 4 | 182 | (1 | ) | |||||||||||||||||||||||||||
Net earnings (loss) | (9,681 | ) | 3,659 | U | (9,864 | ) | 3,482 | U | (6,204 | ) | 396 | U | ||||||||||||||||||||||
Less net earnings (loss) attributable to | ||||||||||||||||||||||||||||||||||
noncontrolling interests | (39 | ) | (8 | ) | (38 | ) | (4 | ) | (1 | ) | (4 | ) | ||||||||||||||||||||||
Net earnings (loss) attributable to the Company | (9,642 | ) | 3,667 | U | (9,826 | ) | 3,486 | U | (6,203 | ) | 399 | U | ||||||||||||||||||||||
Preferred stock dividends | (184 | ) | (181 | ) | — | — | (184 | ) | (181 | ) | ||||||||||||||||||||||||
Net earnings (loss) attributable to | ||||||||||||||||||||||||||||||||||
GE common shareowners | $ | (9,826 | ) | $ | 3,486 | U | $ | (9,826 | ) | $ | 3,486 | U | $ | (6,388 | ) | $ | 218 | U | ||||||||||||||||
Amounts attributable to GE common | ||||||||||||||||||||||||||||||||||
shareowners: | ||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | $ | (9,863 | ) | $ | 3,659 | U | $ | (10,046 | ) | $ | 3,478 | U | $ | (6,386 | ) | $ | 396 | U | ||||||||||||||||
Less net earnings (loss) attributable | ||||||||||||||||||||||||||||||||||
to noncontrolling interests, continuing operations | (39 | ) | (5 | ) | (38 | ) | (4 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||
Earnings (loss) from continuing operations | ||||||||||||||||||||||||||||||||||
attributable to the Company | (9,824 | ) | 3,664 | U | (10,008 | ) | 3,483 | U | (6,385 | ) | 397 | U | ||||||||||||||||||||||
Preferred stock dividends | (184 | ) | (181 | ) | — | — | (184 | ) | (181 | ) | ||||||||||||||||||||||||
Earnings (loss) from continuing operations | ||||||||||||||||||||||||||||||||||
attributable to GE common shareowners | (10,008 | ) | 3,483 | U | (10,008 | ) | 3,483 | U | (6,569 | ) | 215 | U | ||||||||||||||||||||||
Earnings (loss) from discontinued | ||||||||||||||||||||||||||||||||||
operations, net of taxes | 182 | — | 182 | 4 | 182 | (1 | ) | |||||||||||||||||||||||||||
Less net earnings (loss) attributable to | ||||||||||||||||||||||||||||||||||
noncontrolling interests, discontinued operations | — | (3 | ) | — | — | — | (3 | ) | ||||||||||||||||||||||||||
Net earnings (loss) attributable to GE | ||||||||||||||||||||||||||||||||||
common shareowners | $ | (9,826 | ) | $ | 3,486 | U | $ | (9,826 | ) | $ | 3,486 | U | $ | (6,388 | ) | $ | 218 | U | ||||||||||||||||
Per-share amounts - earnings (loss) from | ||||||||||||||||||||||||||||||||||
continuing operations | ||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | (1.15 | ) | $ | 0.39 | U | ||||||||||||||||||||||||||||
Basic earnings (loss) per share | $ | (1.15 | ) | $ | 0.39 | U | ||||||||||||||||||||||||||||
Per-share amounts - net earnings (loss) | ||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | (1.13 | ) | $ | 0.39 | U | ||||||||||||||||||||||||||||
Basic earnings (loss) per share | $ | (1.13 | ) | $ | 0.40 | U | ||||||||||||||||||||||||||||
Total average equivalent shares | ||||||||||||||||||||||||||||||||||
Diluted | 8,676 | 8,901 | (3 | )% | ||||||||||||||||||||||||||||||
Basic | 8,676 | 8,795 | (1 | )% | ||||||||||||||||||||||||||||||
Dividends declared per common share | $ | 0.12 | $ | 0.24 | (50 | )% |
(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 charges recognized in the fourth quarter of 2017. |
GENERAL ELECTRIC COMPANY | ||||||||||||||||||||||||||||||||||
CONDENSED STATEMENT OF EARNINGS (LOSS) (UNAUDITED) | ||||||||||||||||||||||||||||||||||
Consolidated | GE(a) | Financial Services (GE Capital) | ||||||||||||||||||||||||||||||||
Twelve months ended December 31 | 2017 | 2016 | V% | 2017 | 2016 | V% | 2017 | 2016 | V% | |||||||||||||||||||||||||
Revenues and other income | ||||||||||||||||||||||||||||||||||
Sales of goods and services | $ | 113,192 | $ | 110,390 | 3 | % | $ | 113,479 | $ | 110,835 | 2 | % | $ | 130 | $ | 115 | 13 | % | ||||||||||||||||
Other income | 1,625 | 4,005 | 1,436 | 4,092 | — | — | ||||||||||||||||||||||||||||
GE Capital earnings (loss) from continuing operations | — | — | (6,765 | ) | (1,251 | ) | — | — | ||||||||||||||||||||||||||
GE Capital revenues from services | 7,276 | 9,297 | — | — | 8,940 | 10,790 | ||||||||||||||||||||||||||||
Total revenues and other income | 122,092 | 123,693 | (1 | )% | 108,150 | 113,676 | (5 | )% | 9,070 | 10,905 | (17 | )% | ||||||||||||||||||||||
Costs and expenses | ||||||||||||||||||||||||||||||||||
Cost of sales | 91,934 | 87,483 | 90,053 | 85,712 | 2,298 | 2,331 | ||||||||||||||||||||||||||||
Selling, general and administrative expenses | 18,280 | 18,377 | 17,103 | 16,123 | 1,676 | 2,947 | ||||||||||||||||||||||||||||
Interest and other financial charges | 4,869 | 5,025 | 2,753 | 2,026 | 3,145 | 3,790 | ||||||||||||||||||||||||||||
Investment contracts, insurance losses and | ||||||||||||||||||||||||||||||||||
insurance annuity benefits | 12,168 | 2,797 | — | — | 12,213 | 2,861 | ||||||||||||||||||||||||||||
Other costs and expenses(b) | 3,632 | 982 | 1,165 | — | 2,371 | 1,013 | ||||||||||||||||||||||||||||
Total costs and expenses | 130,883 | 114,663 | 14 | % | 111,072 | 103,860 | 7 | % | 21,703 | 12,942 | 68 | % | ||||||||||||||||||||||
Earnings (loss) from continuing operations | ||||||||||||||||||||||||||||||||||
before income taxes | (8,791 | ) | 9,030 | U | (2,922 | ) | 9,815 | U | (12,633 | ) | (2,037 | ) | U | |||||||||||||||||||||
Benefit (provision) for income taxes | 3,043 | 464 | (3,259 | ) | (967 | ) | 6,302 | 1,431 | ||||||||||||||||||||||||||
Earnings (loss) from continuing operations | (5,748 | ) | 9,494 | U | (6,181 | ) | 8,849 | U | (6,331 | ) | (606 | ) | U | |||||||||||||||||||||
Earnings (loss) from discontinued | ||||||||||||||||||||||||||||||||||
operations, net of taxes | (309 | ) | (954 | ) | (315 | ) | (952 | ) | (312 | ) | (954 | ) | ||||||||||||||||||||||
Net earnings (loss) | (6,056 | ) | 8,540 | U | (6,496 | ) | 7,896 | U | (6,643 | ) | (1,560 | ) | U | |||||||||||||||||||||
Less net earnings (loss) attributable to | ||||||||||||||||||||||||||||||||||
noncontrolling interests | (270 | ) | (291 | ) | (274 | ) | (279 | ) | 4 | (12 | ) | |||||||||||||||||||||||
Net earnings (loss) attributable to the Company | (5,786 | ) | 8,831 | U | (6,222 | ) | 8,176 | U | (6,647 | ) | (1,548 | ) | U | |||||||||||||||||||||
Preferred stock dividends | (436 | ) | (656 | ) | — | — | (436 | ) | (656 | ) | ||||||||||||||||||||||||
Net earnings (loss) attributable to | ||||||||||||||||||||||||||||||||||
GE common shareowners | $ | (6,222 | ) | $ | 8,176 | U | $ | (6,222 | ) | $ | 8,176 | U | $ | (7,083 | ) | $ | (2,204 | ) | U | |||||||||||||||
Amounts attributable to GE common | ||||||||||||||||||||||||||||||||||
shareowners: | ||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | $ | (5,748 | ) | $ | 9,494 | U | $ | (6,181 | ) | $ | 8,849 | U | $ | (6,331 | ) | $ | (606 | ) | U | |||||||||||||||
Less net earnings (loss) attributable | ||||||||||||||||||||||||||||||||||
to noncontrolling interests, continuing operations | (277 | ) | (290 | ) | (274 | ) | (279 | ) | (3 | ) | (10 | ) | ||||||||||||||||||||||
Earnings (loss) from continuing operations | ||||||||||||||||||||||||||||||||||
attributable to the Company | (5,471 | ) | 9,784 | U | (5,907 | ) | 9,128 | U | (6,328 | ) | (595 | ) | U | |||||||||||||||||||||
Preferred stock dividends | (436 | ) | (656 | ) | — | — | (436 | ) | (656 | ) | ||||||||||||||||||||||||
Earnings (loss) from continuing operations | ||||||||||||||||||||||||||||||||||
attributable to GE common shareowners | (5,907 | ) | 9,128 | U | (5,907 | ) | 9,128 | U | (6,765 | ) | (1,251 | ) | U | |||||||||||||||||||||
Earnings (loss) from discontinued | ||||||||||||||||||||||||||||||||||
operations, net of taxes | (309 | ) | (954 | ) | (315 | ) | (952 | ) | (312 | ) | (954 | ) | ||||||||||||||||||||||
Less net earnings (loss) attributable to | ||||||||||||||||||||||||||||||||||
noncontrolling interests, discontinued operations | 6 | (1 | ) | — | — | 6 | (1 | ) | ||||||||||||||||||||||||||
Net earnings (loss) attributable to GE | ||||||||||||||||||||||||||||||||||
common shareowners | $ | (6,222 | ) | $ | 8,176 | U | $ | (6,222 | ) | $ | 8,176 | U | $ | (7,083 | ) | $ | (2,204 | ) | U | |||||||||||||||
Per-share amounts - earnings (loss) from | ||||||||||||||||||||||||||||||||||
continuing operations | ||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | (0.68 | ) | $ | 1.00 | U | ||||||||||||||||||||||||||||
Basic earnings (loss) per share | $ | (0.68 | ) | $ | 1.01 | U | ||||||||||||||||||||||||||||
Per-share amounts - net earnings (loss) | ||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | (0.72 | ) | $ | 0.89 | U | ||||||||||||||||||||||||||||
Basic earnings (loss) per share | $ | (0.72 | ) | $ | 0.90 | U | ||||||||||||||||||||||||||||
Total average equivalent shares | ||||||||||||||||||||||||||||||||||
Diluted | 8,687 | 9,130 | (5 | )% | ||||||||||||||||||||||||||||||
Basic | 8,687 | 9,025 | (4 | )% | ||||||||||||||||||||||||||||||
Dividends declared per common share | $ | 0.84 | $ | 0.93 | (10 | )% |
(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 charges recognized in the third and fourth quarter of 2017. |
GENERAL ELECTRIC COMPANY | ||||||||||||||||||||||
SUMMARY OF OPERATING SEGMENTS (UNAUDITED) | ||||||||||||||||||||||
Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(Dollars in millions) | 2017 | 2016 | V% | 2017 | 2016 | V% | ||||||||||||||||
Revenues(a) | ||||||||||||||||||||||
Power(b) | $ | 9,421 | $ | 11,131 | (15 | )% | $ | 35,990 | $ | 36,795 | (2 | )% | ||||||||||
Renewable Energy | 2,875 | 2,500 | 15 | % | 10,280 | 9,033 | 14 | % | ||||||||||||||
Oil & Gas | 5,756 | 3,402 | 69 | % | 17,231 | 12,898 | 34 | % | ||||||||||||||
Aviation | 7,222 | 7,187 | — | % | 27,375 | 26,261 | 4 | % | ||||||||||||||
Healthcare | 5,402 | 5,101 | 6 | % | 19,116 | 18,291 | 5 | % | ||||||||||||||
Transportation | 993 | 1,243 | (20 | )% | 4,178 | 4,713 | (11 | )% | ||||||||||||||
Lighting(b) | 546 | 584 | (7 | )% | 1,987 | 4,823 | (59 | )% | ||||||||||||||
Total industrial segment revenues | 32,214 | 31,147 | 3 | % | 116,157 | 112,814 | 3 | % | ||||||||||||||
Capital | 1,545 | 2,649 | (42 | )% | 9,070 | 10,905 | (17 | )% | ||||||||||||||
Total segment revenues | 33,759 | 33,796 | — | % | 125,227 | 123,719 | 1 | % | ||||||||||||||
Corporate items and eliminations(a) | (2,358 | ) | (708 | ) | (3,135 | ) | (26 | ) | ||||||||||||||
Consolidated revenues | $ | 31,402 | $ | 33,088 | (5 | )% | $ | 122,092 | $ | 123,693 | (1 | )% | ||||||||||
Segment profit (loss)(a) | ||||||||||||||||||||||
Power(b) | $ | 260 | $ | 2,167 | (88 | )% | $ | 2,786 | $ | 5,091 | (45 | )% | ||||||||||
Renewable Energy | 203 | 163 | 25 | % | 727 | 576 | 26 | % | ||||||||||||||
Oil & Gas(c) | (105 | ) | 411 | U | 220 | 1,392 | (84 | )% | ||||||||||||||
Aviation | 1,786 | 1,749 | 2 | % | 6,642 | 6,115 | 9 | % | ||||||||||||||
Healthcare | 1,159 | 1,030 | 13 | % | 3,448 | 3,161 | 9 | % | ||||||||||||||
Transportation | 189 | 317 | (40 | )% | 824 | 1,064 | (23 | )% | ||||||||||||||
Lighting(b) | 50 | 3 | F | 93 | 199 | (53 | )% | |||||||||||||||
Total industrial segment profit | 3,542 | 5,842 | (39 | )% | 14,740 | 17,598 | (16 | )% | ||||||||||||||
Capital | (6,569 | ) | 215 | U | (6,765 | ) | (1,251 | ) | U | |||||||||||||
Total segment profit (loss) | (3,028 | ) | 6,057 | U | 7,975 | 16,347 | (51 | )% | ||||||||||||||
Corporate items and eliminations(a) | (3,184 | ) | (2,106 | ) | (7,871 | ) | (4,226 | ) | ||||||||||||||
GE interest and other financial charges | (834 | ) | (536 | ) | (2,753 | ) | (2,026 | ) | ||||||||||||||
GE benefit (provision) for income taxes | (2,962 | ) | 67 | (3,259 | ) | (967 | ) | |||||||||||||||
Earnings (loss) from continuing operations | ||||||||||||||||||||||
attributable to GE common shareowners | (10,008 | ) | 3,483 | U | (5,907 | ) | 9,128 | U | ||||||||||||||
Earnings (loss) from discontinued operations, | ||||||||||||||||||||||
net of taxes | 182 | — | F | (309 | ) | (954 | ) | 68 | % | |||||||||||||
Less net earnings attributable to | ||||||||||||||||||||||
noncontrolling interests, discontinued operations | — | (3 | ) | 6 | (1 | ) | ||||||||||||||||
Earnings (loss) from discontinued operations, | ||||||||||||||||||||||
net of tax and noncontrolling interests | 182 | 4 | F | (315 | ) | (952 | ) | 67 | % | |||||||||||||
Consolidated net earnings (loss) | ||||||||||||||||||||||
attributable to GE common shareowners | $ | (9,826 | ) | $ | 3,486 | U | $ | (6,222 | ) | $ | 8,176 | U |
(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 $(412) million and $(679) of restructuring and other charges in the three and twelve months ended December 31, 2017, respectively. Excluding this amount, Oil & Gas operating profit was $307 million and $899 million in the three and twelve months ended December 31, 2017, respectively. |
GENERAL ELECTRIC COMPANY | ||||||||||||||||||||||||
CONDENSED STATEMENT OF FINANCIAL POSITION (UNAUDITED) | ||||||||||||||||||||||||
Consolidated | GE(a) | Financial Services (GE Capital) | ||||||||||||||||||||||
December 31 | December 31, | December 31 | December 31 | December 31 | December 31, | |||||||||||||||||||
(Dollars in billions) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and marketable securities(b) | $ | 82.0 | $ | 92.4 | $ | 18.8 | $ | 10.7 | $ | 63.3 | $ | 81.8 | ||||||||||||
Receivables | 24.4 | 24.1 | 14.9 | 12.7 | — | — | ||||||||||||||||||
Inventories | 21.9 | 22.4 | 21.8 | 22.3 | 0.1 | 0.1 | ||||||||||||||||||
GE Capital financing receivables - net | 10.3 | 12.2 | — | — | 22.0 | 26.0 | ||||||||||||||||||
Property, plant & equipment - net | 53.9 | 50.5 | 24.0 | 19.1 | 30.6 | 32.2 | ||||||||||||||||||
Receivable from GE Capital (debt assumption) | — | — | 39.8 | 58.8 | — | — | ||||||||||||||||||
Investment in GE Capital | — | — | 13.5 | 24.7 | — | — | ||||||||||||||||||
Goodwill & intangible assets | 104.2 | 86.9 | 103.0 | 84.2 | 1.2 | 2.7 | ||||||||||||||||||
Contract assets | 28.9 | 25.2 | 28.9 | 25.2 | — | — | ||||||||||||||||||
Other assets | 42.1 | 35.0 | 19.2 | 18.7 | 33.6 | 25.4 | ||||||||||||||||||
Assets of businesses held for sale | 4.2 | 1.7 | 3.9 | 1.6 | — | — | ||||||||||||||||||
Assets of discontinued operations | 5.9 | 14.8 | — | — | 5.9 | 14.8 | ||||||||||||||||||
Total assets | $ | 377.9 | $ | 365.2 | $ | 287.8 | $ | 277.9 | $ | 156.7 | $ | 183.0 | ||||||||||||
Liabilities and equity | ||||||||||||||||||||||||
Borrowings(c) | $ | 134.6 | $ | 136.2 | $ | 81.6 | $ | 79.3 | $ | 95.2 | $ | 117.3 | ||||||||||||
Investment contracts, insurance liabilities and | ||||||||||||||||||||||||
insurance annuity benefits | 38.1 | 26.1 | — | — | 38.6 | 26.5 | ||||||||||||||||||
Non-current compensation and benefits | 41.6 | 43.8 | 40.8 | 42.8 | 0.8 | 1.0 | ||||||||||||||||||
Other liabilities | 76.2 | 73.8 | 78.8 | 74.9 | 7.7 | 9.0 | ||||||||||||||||||
Liabilities of businesses held for sale | 1.3 | 0.7 | 1.3 | 0.7 | — | — | ||||||||||||||||||
Liabilities of discontinued operations | 0.7 | 4.2 | — | — | 0.7 | 4.1 | ||||||||||||||||||
Redeemable noncontrolling interests | 3.4 | 3.0 | 3.4 | 3.0 | — | — | ||||||||||||||||||
GE shareowners' equity | 64.3 | 75.8 | 64.3 | 75.8 | 13.5 | 24.7 | ||||||||||||||||||
Noncontrolling interests | 17.7 | 1.7 | 17.5 | 1.4 | 0.2 | 0.3 | ||||||||||||||||||
Total liabilities and equity | $ | 377.9 | $ | 365.2 | $ | 287.8 | $ | 277.9 | $ | 156.7 | $ | 183.0 |
(a) | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. |
(b) | At December 31, 2017, GE Capital maintained liquidity sources of $30.9 billion that consisted of cash and equivalents of $25.1 billion, high-quality investments of $5.0 billion and cash and equivalents of $0.8 billion classified as assets of discontinued operations. Additionally, at December 31, 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 December 31, 2017 and 2016. |
• | Industrial operating and GE Capital earnings (loss) from continuing operations and EPS |
• | Industrial operating + Verticals earnings (loss) and EPS and Industrial operating + Verticals earnings (loss) and EPS (excluding 4Q charges not included in November 13, 2017 guidance) |
• | Industrial operating profit and operating profit margin (excluding certain items) |
• | GE Industrial structural costs |
• | Industrial segment organic revenues |
• | Industrial cash flows from operating activities (Industrial CFOA) and Adjusted Industrial CFOA |
INDUSTRIAL OPERATING AND GE CAPITAL EARNINGS (LOSS) FROM CONTINUING OPERATIONS AND EPS | |||||||||||||||||||||
Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||||||
(Dollars in millions; except per share amounts) | 2017 | 2016 | V% | 2017 | 2016 | V% | |||||||||||||||
Consolidated earnings (loss) from continuing operations attributable to GE common shareowners (GAAP) | $ | (10,008 | ) | $ | 3,483 | U | $ | (5,907 | ) | $ | 9,128 | U | |||||||||
Non-operating pension cost | (570 | ) | (517 | ) | (2,279 | ) | (2,052 | ) | |||||||||||||
Tax effect on non-operating pension cost(a) | (199 | ) | (181 | ) | (797 | ) | (718 | ) | |||||||||||||
Less: non-operating pension cost (net of tax) | (371 | ) | (336 | ) | (1,482 | ) | (1,334 | ) | |||||||||||||
Operating earnings (loss) (Non-GAAP) | $ | (9,637 | ) | $ | 3,819 | U | $ | (4,425 | ) | $ | 10,462 | U | |||||||||
Less: GE Capital earnings (loss) from continuing operations attributable to GE common shareowners | (6,569 | ) | 215 | (6,765 | ) | (1,251 | ) | ||||||||||||||
Industrial operating earnings (loss) (Non-GAAP) | $ | (3,068 | ) | $ | 3,603 | U | $ | 2,339 | $ | 11,713 | (80 | )% | |||||||||
Earnings (loss) per share (EPS) - diluted(b) | |||||||||||||||||||||
Consolidated EPS from continuing operations attributable to GE common shareowners (GAAP) | $ | (1.15 | ) | $ | 0.39 | U | $ | (0.68 | ) | $ | 1.00 | U | |||||||||
Less: non-operating pension cost (net of tax) | 0.04 | 0.04 | 0.17 | 0.15 | |||||||||||||||||
Operating EPS (Non-GAAP) | $ | (1.11 | ) | $ | 0.43 | U | (0.51 | ) | 1.14 | U | |||||||||||
Less: GE Capital EPS from continuing operations attributable to GE common shareowners (GAAP) | (0.76 | ) | 0.02 | U | (0.78 | ) | (0.14 | ) | U | ||||||||||||
Industrial operating EPS (Non-GAAP) | $ | (0.35 | ) | $ | 0.40 | U | $ | 0.27 | $ | 1.28 | (79 | )% |
(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. |
INDUSTRIAL OPERATING + VERTICALS EARNINGS (LOSS) AND EPS AND INDUSTRIAL OPERATING + VERTICALS EARNINGS (LOSS) AND EPS (EXCLUDING 4Q CHARGES NOT INCLUDED IN NOVEMBER 13, 2017 GUIDANCE) | ||||||||||||||||||||||
Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(Dollars in millions; except per share amounts) | 2017 | 2016 | V% | 2017 | 2016 | V% | ||||||||||||||||
GE Capital earnings (loss) from continuing operations attributable to GE common shareowners (GAAP) | $ | (6,569 | ) | $ | 215 | U | (6,765 | ) | (1,251 | ) | U | |||||||||||
Less: GE Capital other continuing earnings (loss) (Other Capital)(a) | 1,016 | (262 | ) | F | (557 | ) | (3,143 | ) | 82 | % | ||||||||||||
Verticals earnings (loss)(b) | $ | (7,585 | ) | $ | 478 | U | $ | (6,208 | ) | $ | 1,892 | U | ||||||||||
Add: Industrial operating earnings (loss) (Non-GAAP) | (3,068 | ) | 3,603 | U | 2,339 | 11,713 | (80 | )% | ||||||||||||||
Industrial operating + Verticals earnings (loss) (Non-GAAP) | $ | (10,653 | ) | $ | 4,081 | U | $ | (3,869 | ) | $ | 13,605 | U | ||||||||||
Less: 4Q charges not included in November 13, 2017 guidance: | ||||||||||||||||||||||
Held for sale(c) | (1,337 | ) | — | (1,337 | ) | — | ||||||||||||||||
Impairments(d) | (1,996 | ) | — | (1,996 | ) | — | ||||||||||||||||
Insurance(e) | (6,162 | ) | — | (6,162 | ) | — | ||||||||||||||||
Effects of U.S. tax reform(f) | (3,482 | ) | — | (3,482 | ) | — | ||||||||||||||||
Industrial operating + Verticals earnings (loss) (excluding 4Q charges not included in November 13, 2017 guidance) (Non-GAAP) | $ | 2,325 | $ | 4,081 | (43 | )% | $ | 9,109 | $ | 13,605 | (33 | )% | ||||||||||
Earnings (loss) per share (EPS) - diluted(g) | ||||||||||||||||||||||
GE Capital EPS from continuing operations attributable to GE common shareowners (GAAP) | $ | (0.76 | ) | $ | 0.02 | U | $ | (0.78 | ) | $ | (0.14 | ) | U | |||||||||
Less: GE Capital other continuing EPS (Other Capital EPS) | 0.12 | (0.03 | ) | (0.06 | ) | (0.34 | ) | |||||||||||||||
Verticals EPS | $ | (0.87 | ) | $ | 0.05 | U | (0.71 | ) | 0.21 | U | ||||||||||||
Add: Industrial operating EPS (Non-GAAP) | (0.35 | ) | 0.40 | U | 0.27 | 1.28 | (79 | )% | ||||||||||||||
Industrial operating + Verticals EPS (Non-GAAP) | $ | (1.23 | ) | $ | 0.46 | U | $ | (0.45 | ) | 1.49 | U | |||||||||||
Less: 4Q charges not included in November 13, 2017 guidance: | ||||||||||||||||||||||
Held for sale(c) | (0.15 | ) | — | (0.15 | ) | — | ||||||||||||||||
Impairments(d) | (0.23 | ) | — | (0.23 | ) | — | ||||||||||||||||
Insurance(e) | (0.71 | ) | — | (0.71 | ) | — | ||||||||||||||||
Effects of U.S. tax reform(f) | (0.40 | ) | — | (0.40 | ) | — | ||||||||||||||||
Industrial operating + Verticals EPS (excluding 4Q charges not included in November 13, 2017 guidance) (Non-GAAP) | $ | 0.27 | $ | 0.46 | (41 | )% | $ | 1.05 | $ | 1.49 | (30 | )% |
(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 GE Capital businesses (GECAS, Energy Financial Services, Industrial Finance, and run-off insurance activities), including allocated corporate after-tax costs of $25 million and $100 million in the three and twelve months ended December 31, 2017 and 2016, respectively. |
(c) | Losses related to a lower of cost or market (LOCOM) adjustment for Lighting and Aviation businesses held for sale of $(843) million and $(494) million, respectively. |
(d) | Comprised insurance-related impairment charges of $(1,781) million at EFS, related to goodwill and certain other assets, and $(215) million related to an incremental goodwill impairment charge recorded at our Power Conversion business during the fourth quarter of 2017. |
(e) | Represents charges recorded at GE Capital related to its run-off insurance portfolio during the fourth quarter of 2017. |
(f) | Includes the effects of Industrial U.S. tax reform of $(3,718) million and Verticals U.S. tax reform of $236 million recorded during the fourth quarter of 2017. |
(g) | Earnings (loss) per share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total. |
INDUSTRIAL OPERATING PROFIT AND OPERATING PROFIT MARGIN (EXCLUDING CERTAIN ITEMS) | ||||||||||||||||
Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | ||||||||||||||||
GE total revenues and other income | $ | 23,645 | $ | 31,294 | $ | 108,150 | $ | 113,676 | ||||||||
Less: GE Capital earnings (loss) from continuing operations | (6,569 | ) | 215 | (6,765 | ) | (1,251 | ) | |||||||||
GE revenues and other income excluding GE Capital earnings (loss) (Industrial revenues) (GAAP) | $ | 30,214 | $ | 31,078 | $ | 114,915 | $ | 114,927 | ||||||||
Less: gains (losses) on disposals | (1,347 | ) | 49 | 552 | 3,444 | |||||||||||
Adjusted Industrial revenues (Non-GAAP) | $ | 31,561 | $ | 31,029 | $ | 114,363 | $ | 111,483 | ||||||||
Costs | ||||||||||||||||
GE total costs and expenses | $ | 30,729 | $ | 27,883 | $ | 111,072 | $ | 103,860 | ||||||||
Less: GE interest and other financial charges | 834 | 536 | 2,753 | 2,026 | ||||||||||||
Industrial costs excluding interest and other financial charges (GAAP) | $ | 29,894 | $ | 27,347 | $ | 108,320 | $ | 101,834 | ||||||||
Less adjustments for: | ||||||||||||||||
Non-operating pension cost | 570 | 517 | 2,279 | 2,052 | ||||||||||||
Restructuring and other charges | 807 | 1,022 | 4,561 | 3,578 | ||||||||||||
BHI restructuring | 412 | — | 679 | — | ||||||||||||
Held for sale | 33 | — | 33 | — | ||||||||||||
Noncontrolling interests | 38 | 4 | 274 | 279 | ||||||||||||
Adjusted Industrial costs (Non-GAAP) | $ | 28,035 | $ | 25,803 | $ | 100,494 | $ | 95,925 | ||||||||
Industrial profit (GAAP) | $ | 320 | $ | 3,732 | $ | 6,595 | $ | 13,093 | ||||||||
Industrial margins (GAAP) | 1.1 | % | 12.0 | % | 5.7 | % | 11.4 | % | ||||||||
Industrial operating profit (Non-GAAP) | $ | 3,526 | $ | 5,226 | $ | 13,868 | $ | 15,558 | ||||||||
Industrial operating profit margins (Non-GAAP) | 11.2 | % | 16.8 | % | 12.1 | % | 14.0 | % |
GE INDUSTRIAL STRUCTURAL COSTS | |||||||||||
Twelve months ended December 31 | |||||||||||
(In millions) | 2017 | 2016 | V$ | ||||||||
Industrial costs excluding interest and other financial charges (GAAP) | $ | 108,320 | $ | 101,834 | $ | 6,486 | |||||
Less: | |||||||||||
Segment variable costs | 77,749 | 72,252 | |||||||||
Oil & Gas restructuring and other charges(a) | 769 | — | |||||||||
Corporate revenue excluding GE-GE Capital elimination | (1,225 | ) | 2,113 | ||||||||
Corporate gains on disposals | (1,945 | ) | (3,444 | ) | |||||||
Corporate restructuring and other charges | 5,986 | 3,578 | |||||||||
Corporate non-operating pension cost | 2,278 | 2,052 | |||||||||
Corporate noncontrolling interests | (1 | ) | (7 | ) | |||||||
Industrial structural costs (Non-GAAP) | 24,707 | $ | 25,291 | $ | (584 | ) | |||||
Less: Acquisitions and dispositions structural costs | 1,679 | 568 | |||||||||
Industrial structural costs, excluding acquisitions and dispositions (Non-GAAP) | $ | 23,028 | $ | 24,723 | $ | (1,694 | ) |
(a) | Subsequent to the Baker Hughes transaction $769 million of restructuring and other charges was recorded in the Oil & Gas segment, which amounted to $679 million net of noncontrolling interest. |
INDUSTRIAL SEGMENT ORGANIC REVENUES | ||||||||||||||||||||||
Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(Dollars in millions) | 2017 | 2016 | V% | 2017 | 2016 | V% | ||||||||||||||||
Industrial segment revenues (GAAP) | $ | 32,214 | $ | 31,147 | 3 | % | $ | 116,157 | $ | 112,814 | 3 | % | ||||||||||
Less revenues related to: | ||||||||||||||||||||||
Acquisitions | 2,845 | 15 | 6,059 | 37 | ||||||||||||||||||
Business dispositions | 27 | 629 | 89 | 3,481 | ||||||||||||||||||
Currency exchange rates | 630 | — | 578 | — | ||||||||||||||||||
Industrial segment organic revenues (Non-GAAP) | $ | 28,712 | $ | 30,503 | (6 | )% | $ | 109,430 | $ | 109,296 | — | % |
INDUSTRIAL CASH FLOWS FROM OPERATING ACTIVITIES (INDUSTRIAL CFOA) AND ADJUSTED INDUSTRIAL CFOA | ||||||||||||||||||||||
Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(Dollars in millions) | 2017 | 2016 | V% | 2017 | 2016 | V% | ||||||||||||||||
Cash from GE's operating activities (continuing operations), as reported (GAAP) | $ | 6,990 | $ | 11,618 | (40 | )% | $ | 11,040 | $ | 29,960 | (63 | )% | ||||||||||
Less: dividends from GE Capital | — | 4,045 | 4,016 | 20,095 | ||||||||||||||||||
Industrial CFOA (Non-GAAP) | $ | 6,990 | $ | 7,573 | (8 | )% | $ | 7,024 | $ | 9,865 | (29 | )% | ||||||||||
Less: Deal taxes | (117 | ) | (322 | ) | (229 | ) | (1,398 | ) | ||||||||||||||
Less: GE Pension Plan funding | (287 | ) | (347 | ) | (1,718 | ) | (347 | ) | ||||||||||||||
Less: Oil & Gas CFOA | (234 | ) | — | (477 | ) | — | ||||||||||||||||
Add: BHGE dividend | 129 | — | 251 | — | ||||||||||||||||||
Adjusted Industrial CFOA (Non-GAAP) | $ | 7,757 | $ | 8,242 | (6 | )% | $ | 9,698 | $ | 11,610 | (16 | )% |
• | our execution of Industrial and GE Capital business or asset dispositions, including sale prices, the timing of disposition proceeds and potential trailing liabilities, as well as our ongoing portfolio review; |
• | the amount and timing of our Industrial cash flows and earnings, which may be impacted by customer, competitive, contractual and other dynamics and conditions; |
• | our capital allocation plans, as such plans may change including with respect to the timing and amount of GE dividends, organic investments, including research and development, investments in Digital and capital expenditures, pension funding contributions, acquisitions, joint ventures and other strategic actions; |
• | our ability to maintain our current short- and long-term credit ratings and the impact on our funding costs and competitive position if we do not do so; |
• | changes in law, economic and financial conditions, including the enactment of tax reform or other tax law changes, interest and exchange rate volatility, commodity and equity prices and the value of financial assets; |
• | the impact of conditions in the financial and credit markets on GE Capital’s ability to sell financial assets, the availability and cost of GE Capital funding and GE Capital’s exposure to counterparties; |
• | pending and future mortgage loan repurchase claims, other litigation claims and the U.S. Department of Justice’s investigation under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 and other investigations in connection with WMC, which may affect our estimates of liability, including possible loss estimates; |
• | our ability to launch new products in a cost-effective manner; |
• | our ability to increase margins through restructuring and other cost reduction measures; |
• | our ability to convert pre-order commitments/wins into orders/bookings; |
• | the price we realize on orders/bookings since commitments/wins are stated at list prices; |
• | customer actions or market developments such as early aircraft retirements, reduced demand for equipment and services in the energy markets in which we operate or shifts in the competitive landscape for our products and services, changes in economic conditions, including oil prices, and other factors that may affect the level of demand and financial performance of the major industries and customers we serve; |
• | the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of WMC, Alstom and other investigative and legal proceedings; |
• | our success in completing, including obtaining regulatory approvals and satisfying other closing conditions for, announced transactions, such as our announced plan to sell our Transportation, Industrial Solutions and Current & Lighting businesses or other dispositions that we may pursue; |
• | our success in integrating acquired businesses and operating joint ventures, and our ability to realize revenue and cost synergies from announced transactions, acquired businesses and joint ventures, including Alstom and Baker Hughes, a GE company; |
• | the impact of potential information technology, cybersecurity or data security breaches; |
• | the other factors that are described in “Forward-Looking Statements” in Baker Hughes, a GE company’s, most recent earnings release or SEC filing; and |
• | the other factors that are described in “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2016. |
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