NOTE 24. OPERATING SEGMENTS

BASIS FOR PRESENTATION

Our operating businesses are organized based on the nature of markets and customers. Segment accounting policies are the same as described and referenced in Note 1. Segment results for our financial services businesses reflect the discrete tax effect of transactions.

A description of our operating segments as of December 31, 2017, can be found below, and details of segment profit by operating segment can be found in the Summary of Operating Segments table in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section in this Form 10-K Report.

POWER

Power serves power generation, industrial, government and other customers worldwide with products and services related to energy production and water reuse. Our products and technologies harness resources such as oil, gas, coal, diesel, nuclear and water to produce electric power and include gas and steam turbines, full balance of plant, upgrade and service solutions, as well as data-leveraging software.

RENEWABLE ENERGY

GE Renewable Energy makes renewable power sources affordable, accessible, and reliable for the benefit of people everywhere. With one of the broadest technology portfolios in the industry, Renewable Energy creates value for customers with solutions from onshore and offshore wind, hydro, and its wind turbine blade manufacturing business. With operations in over 40 countries around the world, Renewable Energy can deliver solutions to where its customers need them most.

OIL & GAS

Oil & Gas is a fullstream oilfield technology provider that has a unique mix of integrated oilfield products, services and digital solutions. We conduct business in more than 120 countries. We operate through our four business segments: Oilfield Services, Oilfield Equipment, Turbomachinery & Processing Solutions, and Digital Solutions.

AVIATION

Aviation designs and produces commercial and military aircraft engines, integrated digital components, electric power and mechanical aircraft systems, and additive machines, materials and engineering services. We also provide aftermarket services to support our products.

HEALTHCARE

Healthcare provides essential healthcare technologies to developed and emerging markets and has expertise in medical imaging, digital solutions, patient monitoring and diagnostics, drug discovery, biopharmaceutical manufacturing technologies and performance improvement solutions. Products and services are sold worldwide primarily to hospitals, medical facilities, pharmaceutical and biotechnology companies, and to the life science research market.

TRANSPORTATION

Transportation is a global technology leader and supplier to the railroad, mining, marine, stationary power and drilling industries.

LIGHTING

Lighting includes the GE Lighting business, which is primarily focused on consumer lighting applications in the U.S., and Current, powered by GE (Current), which is focused on providing energy efficiency and productivity solutions for commercial, industrial and municipal customers.

CAPITAL

Capital is the financial services division of GE focused on customers and markets aligned with GE’s industrial businesses, whether in developed economies or emerging markets. We provide financial products and services around the globe that are geared to utilize GE’s industry specific expertise in aviation, energy, infrastructure, and healthcare to capitalize on market-specific opportunities. In addition, we continue to operate our run-off insurance operations as part of our continuing operations.



REVENUES

	Total revenues(a)									Intersegment revenues(b)									External revenues
(In millions)	2017			2016			2015			2017			2016			2015			2017		2016		2015

Power	$	35,990		$	36,795		$	28,903		$	1,392		$	1,330		$	1,574		$	34,598	$	35,465	$	27,328
Renewable Energy	10,280			9,033			6,273			69			11			12			10,211		9,022		6,261
Oil & Gas	17,231			12,898			16,450			646			383			387			16,584		12,515		16,063
Aviation	27,375			26,261			24,660			585			730			418			26,790		25,530		24,242
Healthcare	19,116			18,291			17,639			18			15			7			19,098		18,276		17,633
Transportation	4,178			4,713			5,933			10			1			1			4,168		4,713		5,932
Lighting(c)	1,987			4,823			8,751			31			28			22			1,956		4,795		8,729
Total industrial segment revenues	116,157			112,814			108,609			2,751			2,498			2,421			113,406		110,316		106,188
Capital	9,070			10,905			10,801			1,620			1,288			1,151			7,451		9,617		9,650
Corporate items and eliminations	(3,135		)	(26		)	(2,024		)	(4,371		)	(3,786		)	(3,572		)	1,236		3,760		1,548
Total	$	122,092		$	123,693		$	117,386		$	—		$	—		$	—		$	122,092	$	123,693	$	117,386


(a)	Revenues of GE businesses include income from sales of goods and services to customers and other income.


(b)	Sales from one component to another generally are priced at equivalent commercial selling prices.


(c)	Lighting segment included Appliances for the year ended December 31, 2015, and through its disposition in the second quarter of 2016.

Revenues from customers located in the United States were $46,312 million, $53,624 million and $53,238 million in 2017, 2016 and 2015, respectively. Revenues from customers located outside the United States were $75,780 million, $70,069 million and $64,148 million in 2017, 2016 and 2015, respectively.



PROFIT AND EARNINGS

(In millions)	2017			2016			2015

Power	$	2,786		$	5,091		$	4,772
Renewable Energy	727			576			431
Oil & Gas	220			1,392			2,427
Aviation	6,642			6,115			5,507
Healthcare	3,448			3,161			2,882
Transportation	824			1,064			1,273
Lighting(a)	93			199			674
Total industrial segment profit	14,740			17,598			17,966
Capital	(6,765		)	(1,251		)	(7,983		)
Total segment profit	7,975			16,347			9,983
Corporate items and eliminations	(7,871		)	(4,226		)	(5,108		)
GE interest and other financial charges	(2,753		)	(2,026		)	(1,706		)
GE provision for income taxes	(3,259		)	(967		)	(1,506		)
Earnings (loss) from continuing operations attributable to GE common shareowners	(5,907		)	9,128			1,663
Earnings (loss) from discontinued operations, net of taxes	(309		)	(954		)	(7,495		)
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations	6			(1		)	312
Earnings (loss) from discontinued operations, net of taxes and noncontrolling interests	(315		)	(952		)	(7,807		)
Consolidated net earnings (loss) attributable to GE common shareowners	$	(6,222	)	$	8,176		$	(6,145	)


(a)	Lighting segment included Appliances for the year ended December 31, 2015, and through its disposition in the second quarter of 2016.



	Assets(a)							Property, plant and equipment additions(b)								Depreciation and amortization
	At December 31							For the years ended December 31								For the years ended December 31
(In millions)	2017		2016			2015		2017			2016		2015			2017		2016		2015

Power	$	71,133	$	71,678		$	68,793	$	1,072		$	963	$	3,195		$	1,358	$	1,549	$	1,035
Renewable Energy	10,813		8,794			9,468		624			166		999			259		183		116
Oil & Gas	59,784		24,615			26,126		5,469			284		422			1,026		529		596
Aviation	41,753		38,899			34,524		1,426			1,328		1,260			979		900		855
Healthcare	28,772		28,639			28,162		393			432		284			806		785		799
Transportation	4,490		4,288			4,368		128			108		202			135		168		188
Lighting(c)	724		1,659			4,702		34			160		275			86		173		103
Capital(d)	156,716		187,804			316,069		3,680			3,769		7,570			2,343		2,515		2,584
Corporate items and eliminations(e)	3,761		(1,192		)	858		(100		)	94		(297		)	367		337		231
Total	$	377,945	$	365,183		$	493,071	$	12,728		$	7,305	$	13,911		$	7,358	$	7,139	$	6,508

(a)

Total assets of Power, Renewable Energy, Oil & Gas, Aviation, Healthcare, Transportation and Capital operating segments at December 31, 2017, include investments in and advances to associated companies of $1,170 million, $89 million, $476 million, $1,900 million, $392 million, $56 million and $7,294 million, respectively. Lighting held an insignificant balance as of December 31, 2017. Investments in and advances to associated companies contributed approximately $81 million, $(4) million, $(5) million, $110 million, $17 million, $(1) million, $2 million and $(31) million to segment pre-tax income of Power, Renewable Energy, Oil & Gas, Aviation, Healthcare, Transportation, Lighting and Capital operating segments, respectively.


(b)	Additions to property, plant and equipment include amounts relating to principal businesses purchased.


(c)	Lighting segment included Appliances for the year ended December 31, 2015.


(d)	Includes Capital discontinued operations.


(e)	Includes deferred income taxes that are presented as assets for purposes of our consolidating balance sheet presentation.



	Interest and other financial charges						Benefit (provision) for income taxes
(In millions)	2017		2016		2015		2017			2016			2015

Capital	$	3,145	$	3,790	$	2,301	$	6,302		$	1,431		$	(4,979	)
Corporate items and eliminations(a)	1,724		1,234		1,162		(3,259		)	(967		)	(1,506		)
Total	$	4,869	$	5,025	$	3,463	$	3,043		$	464		$	(6,485	)


(a)	Included amounts for Power, Renewable Energy, Oil & Gas, Aviation, Healthcare, Transportation and Lighting, for which our measure of segment profit excludes interest and other financial charges and income taxes.

Property, plant and equipment – net associated with operations based in the United States were $17,643 million, $14,987 million and $14,273 million at December 31, 2017, 2016 and 2015, respectively. Property, plant and equipment – net associated with operations based outside the United States were $36,231 million, $35,531 million and $39,822 million at December 31, 2017, 2016 and 2015, respectively.