NOTE 22. CASH FLOWS INFORMATION

Changes in operating assets and liabilities are net of acquisitions and dispositions of principal businesses.

Amounts reported in the “Proceeds from sales of discontinued operations” and “Proceeds from principal business dispositions” lines in the Statement of Cash Flows are net of cash disposed and included certain deal-related costs. Amounts reported in the “Net cash from (payments for) principal businesses purchased” line is net of cash acquired and included certain deal-related costs and debt assumed and immediately repaid in acquisitions. Amounts reported in the “All other operating activities” line in the Statement of Cash Flows reflect cash sources and uses as well as non-cash adjustments to net income including those related to taxes, pension, contract assets, gains (losses) on principal business dispositions, intangible amortization and restructuring and other charges. Certain supplemental information related to our cash flows is shown below.



For the years ended December 31 (In millions)	2017			2016			2015

All other operating activities
(Gains) losses on purchases and sales of business interests(a)	$	(656	)	$	(3,701	)	$	(1,020	)
Contract assets (net)(b)	(3,988		)	(3,929		)	(1,919		)
Income taxes(c)	110			(2,752		)	1,671
Principal pension plans(d)	1,709			3,071			4,265
Other postretirement benefit plans(e)	(888		)	(716		)	(503		)
Intangible asset amortization	2,154			2,011			1,514
Restructuring and other charges(f)	3,162			1,702			637
Deferred income	55			(371		)	(86		)
Net earnings (loss) attributable to noncontrolling interests	(274		)	(279		)	83
Other(g)	(562		)	(2,474		)	(2,559		)
	$	822		$	(7,438	)	$	2,083
All other investing activities
Derivative settlements (net)(h)	$	(1,142	)	$	—		$	—
Investments in intangible assets (net)	(321		)	(499		)	(158		)
Investments in associated companies (net)	(226		)	(420		)	(182		)
Other investments (net)	(272		)	(175		)	(181		)
Other(i)	(136		)	(558		)	(32		)
	$	(2,097	)	$	(1,652	)	$	(553	)
Net dispositions (purchases) of GE shares for treasury
Open market purchases under share repurchase program(j)	$	(3,506	)	$	(22,581	)	$	(2,709	)
Other purchases	(67		)	(399		)	(58		)
Dispositions	1,021			1,550			1,668
	$	(2,550	)	$	(21,429	)	$	(1,099	)

(a)

Included pre-tax gains on sales of businesses reclassified to Proceeds from principal business dispositions within Cash flows from investing activities of $(1,943) million for Water in 2017, $(3,136) million for Appliances and $(398) million for GE Asset Management in 2016, and $(623) million for Signaling in 2015, partially offset by a valuation allowance on businesses classified as held for sale of $1,378 million in 2017. See Notes 2 and 17.


(b)	Contract assets are presented net of related billings in excess of revenues on our long-term product service agreements. See Note 9.

(c)

Reflected the effects of current tax expense (benefit) of $2,810 million, $(140) million and $3,307 million and net cash paid during the year for income taxes of $(2,700) million, $(2,612) million and $(1,636) million for the years ended December 31, 2017, 2016 and 2015, respectively. Cash flows effects of deferred tax provisions (benefits) are shown separately within Cash flows from operating activities in the Statement of Cash Flows. See Note 13.

(d)

Reflected the effects of pension costs of $3,687 million, $3,623 million and $4,498 million and employer contributions of $(1,978) million, $(552) million and $(233) million for the years ended December 31, 2017, 2016 and 2015, respectively. 2016 employer contributions included GE Pension Trust funding of $(330) million representing net sale proceeds associated with the sale of GE Asset Management. See Note12.


(e)	Reflected the effects of other postretirement plans costs of $369 million, $489 million and $547 million and employer contributions of $(1,257) million, $(1,205) million and $(1,050) million for the years ended December 31, 2017, 2016 and 2015, respectively. See Note 12.

(f)

Reflected the effects of restructuring and other charges of $5,158 million (which included pre-tax impairments related to Power Conversion goodwill of $1,164 million and a power plant asset of $315 million), $3,384 million and $1,671 million and restructuring and other cash expenditures of $(1,996) million, $(1,682) million and $(1,034) million for the years ended December 31, 2017, 2016 and 2015, respectively. Excludes non-cash adjustments reflected as Depreciation and amortization of property, plant and equipment in the Statement of Cash Flows.


(g)	Included other non-cash adjustments to net income, such as write-downs of assets and the impacts of acquisition accounting and changes in other assets and other liabilities classified as operating activities.


(h)	The classification of the settlement of derivative instruments was corrected from operating cash flows to investing cash flows in 2017. Such settlements of $178 million and $(199) million in 2016 and 2015, respectively, were not reclassified and corrected in investing cash flows in those periods as they were not considered material.


(i)	Primarily included cash collateral held on long-term financing arrangements in 2016.


(j)	Included $(11,370) million paid under ASR agreements in 2016.

GE CAPITAL



For the years ended December 31 (In millions)	2017			2016			2015

All other operating activities
Cash collateral on derivative contracts	$	131		$	(428	)	$	(1,936	)
Increase (decrease) in other liabilities	(1,566		)	(2,616		)	4,860
Other(a)	13,237			(10		)	2,163
	$	11,802		$	(3,054	)	$	5,087
Net decrease (increase) in GE Capital financing receivables
Increase in loans to customers	$	(41,393	)	$	(65,055	)	$	(65,306	)
Principal collections from customers - loans	43,613			60,375			60,292
Investment in equipment for financing leases	(585		)	(690		)	(417		)
Principal collections from customers - financing leases	1,011			856			734
Sales of financing receivables	251			3,235			4,923
	$	2,897		$	(1,279	)	$	226
All other investing activities
Purchases of investment securities	$	(2,867	)	$	(18,588	)	$	(7,790	)
Dispositions and maturities of investment securities	10,001			7,343			9,587
Decrease (increase) in other assets - investments	(8,457		)	9,202			(1,439		)
Other(b)	4,375			3,690			(5,025		)
	$	3,052		$	1,647		$	(4,667	)
Repayments and other reductions (maturities longer than 90 days)
Short-term (91 to 365 days)	$	(18,591	)	$	(44,519	)	$	(42,110	)
Long-term (longer than one year)	(2,054		)	(13,418		)	(2,455		)
Principal payments - non-recourse, leveraged leases	(362		)	(348		)	(283		)
	$	(21,007	)	$	(58,285	)	$	(44,848	)
All other financing activities
Proceeds from sales of investment contracts	$	10		$	19		$	163
Redemption of investment contracts	(344		)	(346		)	(1,235		)
Other	54			(800		)	(290		)
	$	(280	)	$	(1,127	)	$	(1,362	)


(a)	Primarily included non-cash adjustments for insurance-related charges recorded in the fourth quarter of 2017.


(b)	Primarily included net activity related to settlements between our continuing operations (primarily our treasury operations) and businesses in discontinued operations.