0000040545-19-000019.txt : 20190314 0000040545-19-000019.hdr.sgml : 20190314 20190314073627 ACCESSION NUMBER: 0000040545-19-000019 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20190314 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20190314 DATE AS OF CHANGE: 20190314 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENERAL ELECTRIC CO CENTRAL INDEX KEY: 0000040545 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC & OTHER ELECTRICAL EQUIPMENT (NO COMPUTER EQUIP) [3600] IRS NUMBER: 140689340 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-00035 FILM NUMBER: 19679744 BUSINESS ADDRESS: STREET 1: 41 FARNSWORTH STREET CITY: BOSTON STATE: MA ZIP: 02210 BUSINESS PHONE: 617-443-3000 MAIL ADDRESS: STREET 1: 41 FARNSWORTH STREET CITY: BOSTON STATE: MA ZIP: 02210 8-K 1 a8-kx31419.htm 8-K Document

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 

Date of Report (Date of earliest event reported) March 14, 2019
 
 
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
 
 
N/A
 
(Former name or former address, if changed since last report.)

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨
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 provided pursuant to Section 13(a) of the Exchange Act. ¨


    

Item 2.02. Results of Operations and Financial Condition.
On March 14, 2019, General Electric Company (“GE”) released information about the cash flows of its industrial business segments and corporate items and eliminations for the year ended December 31, 2018 on its investor relations website at www.ge.com/investor. A copy of this release is attached as Exhibit 99 and incorporated by reference herein.

The information provided pursuant to this Item 2.02, including Exhibit 99, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.

Item 9.01.  Financial Statements and Exhibits.
 
(d) Exhibits

The following exhibit is being furnished as part of this report:



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SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


 
 
General Electric Company
 
 
 
(Registrant)
 
 
 
 
 
 
 
 
 
Date: March 14, 2019
 
/s/ Thomas S. Timko
 
 
 
Thomas S. Timko
Vice President,
Chief Accounting Officer and Controller
Principal Accounting Officer
 





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 EX-99 2 a8-k31419ex99.htm EXHIBIT 99 Exhibit

GENERAL ELECTRIC COMPANY
Additional cash flows information for year ended December 31, 2018
As a supplement to the information reported in our Statement of Cash Flows for the year ended December 31, 2018, General Electric Company is providing the following breakdown of the cash flows from operating activities (CFOA) and Adjusted Free Cash Flows (Non-GAAP) for its industrial business segments and corporate items and eliminations for the year ended December 31, 2018.
For the year ended December 31, 2018 (Dollars in millions)
 
 
 
 
 
 
 
 
Cash flows from operating activities (GAAP)
 
 
 
 
 
 
 
 
Power(a)
 
 
 
 
 
 
 
$
(2,210
)
Renewable Energy
 
 
 
 
 
 
 
770

Aviation
 
 
 
 
 
 
 
5,373

Oil & Gas
 
 
 
 
 
 
 
1,763

Healthcare
 
 
 
 
 
 
 
3,485

Transportation
 
 
 
 
 
 
 
281

Lighting
 
 
 
 
 
 
 
(8
)
Corporate items and eliminations
 
 
 
 
 
 
 
(7,196
)
GE CFOA(b)
 
 
 
 
 
 
 
$
2,258

 
 
 
 
 
 
 
 
 
Adjusted Free Cash Flows (Non-GAAP)
 
 
 
 
 
 
 
 
Power(a)
 
 
 
 
 
 
 
$
(2,660
)
Renewable Energy
 
 
 
 
 
 
 
486

Aviation
 
 
 
 
 
 
 
4,230

Oil & Gas
 
 
 
 
 
 
 
494

Healthcare
 
 
 
 
 
 
 
3,018

Transportation
 
 
 
 
 
 
 
167

Lighting
 
 
 
 
 
 
 
(34
)
Corporate items and eliminations
 
 
 
 
 
 
 
(1,186
)
Adjusted GE Industrial Free Cash Flows(b)
 
 
 
 
 
 
 
$
4,515

(a)    Previously disclosed in our Form 8-K filed on January 31, 2019.
(b)    Previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2018.
We present both GAAP and non-GAAP measures to provide investors with additional information. We believe that providing these non-GAAP measures along with GAAP measures allows for increased comparability of our ongoing performance from period to period. Please see pages 2-3 for explanations of why we use these non-GAAP measures and the reconciliation to the most comparable GAAP financial measures.


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GENERAL ELECTRIC COMPANY
Financial Measures That Supplement GAAP

We sometimes use information derived from consolidated financial data but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain of these data 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.

•
2018 Free Cash Flows (FCF) and Adjusted FCF by segment
•
GE Industrial FCF and Adjusted GE Industrial FCF

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.

2018 FREE CASH FLOWS (FCF) BY SEGMENT AND ADJUSTED FCF BY SEGMENT (NON-GAAP)
(In millions)
 
Power
 
Renewable Energy
 
Aviation
 
Oil & Gas
Healthcare
 
Transportation
 
Lighting
 
Corp and Elims
 
GE Industrial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CFOA (GAAP)
 
$
(2,210
)
 
$
770

 
$
5,373

 
$
1,763

$
3,485

 
$
281

 
$
(8
)
 
$
(7,196
)
 
$
2,258

Add: gross additions to property, plant and equipment
 
(378
)
 
(279
)
 
(1,070
)
 
(964
)
(378
)
 
(104
)
 
(17
)
 
(112
)
 
(3,302
)
Add: gross additions to internal-use software
 
(72
)
 
(5
)
 
(73
)
 
(31
)
(90
)
 
(11
)
 
(9
)
 
(58
)
 
(347
)
Less: GE Pension Plan funding
 
—

 
—

 
—

 
—

—

 
—

 
—

 
(6,000
)
 
(6,000
)
Less: taxes related to business sales
 
—

 
—

 
—

 
—

—

 
—

 
—

 
(180
)
 
(180
)
Free Cash Flows (Non-GAAP)
 
$
(2,660
)
 
$
486

 
$
4,230

 
$
768

$
3,018

 
$
167

 
$
(34
)
 
$
(1,186
)
 
$
4,789

Less: Oil & Gas CFOA
 
—

 
—

 
—

 
1,763

—

 
—

 
—

 
—

 
1,763

Less: Oil & Gas gross additions to property, plant and equipment
 
—

 
—

 
—

 
(964
)
—

 
—

 
—

 
—

 
(964
)
Less: Oil & Gas gross additions to internal-use software
 
—

 
—

 
—

 
(31
)
—

 
—

 
—

 
—

 
(31
)
Add: BHGE Class B shareholder dividend
 
—

 
—

 
—

 
494

—

 
—

 
—

 
—

 
494

Adjusted Free Cash Flows (Non-GAAP)
 
$
(2,660
)
 
$
486

 
$
4,230

 
$
494

$
3,018

 
$
167

 
$
(34
)
 
$
(1,186
)
 
$
4,515




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2018 GE INDUSTRIAL FREE CASH FLOWS (FCF) AND ADJUSTED GE INDUSTRIAL FCF (NON-GAAP)
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
2018

GE CFOA (GAAP)
 
 
 
 
 
 
 
 
 
 
 
$
2,258

Add: gross additions to property, plant and equipment
 
 
 
 
 
 
 
 
 
 
 
(3,302
)
Add: gross additions to internal-use software
 
 
 
 
 
 
 
 
 
 
 
(347
)
Less: GE Pension Plan funding
 
 
 
 
 
 
 
 
 
 
 
(6,000
)
Less: taxes related to business sales
 
 
 
 
 
 
 
 
 
 
 
(180
)
GE Industrial Free Cash Flows (Non-GAAP)
 
 
 
 
 
 
 
 
 
 
 
$
4,789

Less: Oil & Gas CFOA
 
 
 
 
 
 
 
 
 
 
 
1,763

Less: Oil & Gas gross additions to property, plant and equipment
 
 
 
 
 
 
 
 
 
(964
)
Less: Oil & Gas gross additions to internal-use software
 
 
 
 
 
 
 
 
 
 
 
(31
)
Add: BHGE Class B shareholder dividend
 
 
 
 
 
 
 
 
 
 
 
494

Adjusted GE Industrial Free Cash Flows (Non-GAAP)
 
 
 
 
 
 
 
 
 
 
 
$
4,515

In 2018, GE transitioned from reporting an Adjusted GE Industrial CFOA metric to measuring itself on a GE Industrial Free Cash Flows basis*. This metric includes GE CFOA plus investments in property, plant and equipment and additions to internal-use software; this metric excludes any dividends received from GE Capital and any cash received from dispositions of property, plant and equipment.
 
 
 
 
 
 
 
 
 
 
 
 
 
We believe that investors may also find it useful to compare GE’s Industrial free cash flows* performance without the effects of cash used for taxes related to business sales and contributions to the GE Pension Plan. We believe that this measure will better allow management and investors to evaluate the capacity of our industrial operations to generate free cash flows. In addition, we report Adjusted GE Industrial Free Cash Flows* in order to provide a more fair representation of the cash that we are entitled to utilize in a given period. We also used Adjusted GE Industrial Free Cash Flows* as a performance metric at the company-wide level for our annual executive incentive plan for 2018.
 
 
 
 
 
 
 
 
 
 
 
 
 
Management recognizes that the term free cash flows may be interpreted differently by other companies and under different circumstances. Although this may have an effect on comparability of absolute percentage growth from company to company, we believe that these measures are useful in assessing trends of the respective businesses or companies and may therefore be a useful tool in assessing period-to-period performance trends.

































*Non-GAAP Financial Measure

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