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Postretirement Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2013
Pension Benefit Plan [Member]
  
Defined Benefit Plan Disclosure [Line Items]  
Pension Plan Participants
Pension Plan Participants     
   Principal Other
   pension pension
December 31, 2013Total plans plans
      
Active employees128,000 94,000 34,000
Vested former employees229,000 184,000 45,000
Retirees and beneficiaries263,000 230,000 33,000
Total620,000 508,000 112,000
Effect on operations of the pension plans
Cost of Pension Plans                          
 Total Principal pension plans Other pension plans
(In millions) 2013  2012  2011  2013  2012  2011  2013  2012  2011
                           
Service cost for benefits earned$1,970 $1,779 $1,498 $1,535 $1,387 $1,195 $435 $392 $303
Prior service cost amortization 253  287  207  246  279  194  7  8  13
Expected return on plan assets (4,163)  (4,394)  (4,543)  (3,500)  (3,768)  (3,940)  (663)  (626)  (603)
Interest cost on benefit obligations 2,983  2,993  3,176  2,460  2,479  2,662  523  514  514
Net actuarial loss amortization 4,007  3,701  2,486  3,664  3,421  2,335  343  280  151
Pension plans cost$5,050 $4,366 $2,824 $4,405 $3,798 $2,446 $645 $568 $378
                           
                           
Actuarial Assumptions
 Principal pension plans  Other pension plans (weighted average)
December 312013 2012 2011 2010  2013 2012 2011 2010 
                  
Discount rate4.85%3.96%4.21%5.28% 4.39%3.92%4.42%5.11%
Compensation increases4.00 3.90 3.75 4.25  3.76 3.30 4.31 4.44 
Expected return on assets7.50 8.00 8.00 8.00  6.92 6.82 7.09 7.25 
Accumulated Benefit Obligation
Projected Benefit Obligation           
 Principal pension plans Other pension plans
(In millions)2013 2012 2013 2012
            
Balance at January 1$63,502 $ 60,510 $ 13,584 $ 11,637
Service cost for benefits earned 1,535   1,387   435   392
Interest cost on benefit obligations 2,460   2,479   523   514
Participant contributions 156   157   14   16
Plan amendments  -   -   11   (6)
Actuarial loss (gain) (a) (6,406)   2,021   (575)   890
Benefits paid (3,134)   (3,052)   (477)   (425)
Acquisitions (dispositions) / other - net  -   -   46   230
Exchange rate adjustments  -   -   (26)   336
Balance at December 31(b)$58,113 $ 63,502 $ 13,535 $ 13,584
            
            

(a)       Principally associated with discount rate changes.

(b)       The PBO for the GE Supplementary Pension Plan, which is an unfunded plan, was $5,162 million and $5,494 million at year-end 2013 and 2012, respectively.

Accumulated Benefit Obligation     
December 31 (In millions)2013 2012
      
GE Pension Plan$ 50,967 $ 55,664
GE Supplementary Pension Plan  3,946   4,114
Other pension plans  12,629   12,687
Plans With Assets Less Than ABO
Plans With Assets Less Than ABO     
December 31 (In millions)2013 2012
      
Funded plans with assets less than ABO     
   Plan assets$ 57,430 $ 53,276
   Accumulated benefit obligations  60,715   66,069
   Projected benefit obligations  63,532   69,234
Unfunded plans(a)     
   Accumulated benefit obligations  5,243   5,390
   Projected benefit obligations  6,512   6,828
      
      

(a)       Primarily related to the GE Supplementary Pension Plan.

 
Fair Value of Plan Assets
Fair Value of Plan Assets           
 Principal pension plans Other pension plans
(In millions)2013 2012 2013 2012
            
Balance at January 1$44,738 $ 42,137 $ 9,702 $ 8,381
Actual gain on plan assets 6,312   4,854   1,212   720
Employer contributions 225   642   673   737
Participant contributions 156   157   14   16
Benefits paid (3,134)   (3,052)   (477)   (425)
Acquisitions (dispositions) / other - net  -   -   (31)   -
Exchange rate adjustments  -   -   (34)   273
Balance at December 31$48,297 $ 44,738 $ 11,059 $ 9,702
Asset Allocation
Asset Allocation        
   Other pension plans 
 Principal pension plans (weighted average) 
 2013 2013 2013 2013 
 Target Actual Target Actual 
 allocation allocation allocation allocation 
         
Equity securities17 - 57% (a)45% (b)55%55%
Debt securities (including cash equivalents)13 - 53 31 32 34 
Private equities8 - 18 13 2 1 
Real estate2 - 12 7 6 5 
Other3 - 13 4 5 5 
         
         

(a)       Target equally divided between U.S. equity securities and non-U.S. equity securities.

(b)       Actual allocations were 26% for U.S. equity securities and 19% for non-U.S. equity securities.

 
Pension Plan Investments Measured at Fair Value
(In millions) Level 1  Level 2  Level 3  Total
            
December 31, 2013           
            
Equity securities           
   U.S. equity securities(a)$ 11,067 $ 1,568 $ - $ 12,635
   Non-U.S. equity securities(a)  7,832   1,292   -   9,124
Debt securities           
   Fixed income and cash investment funds  -   2,078   -   2,078
   U.S. corporate(b)  -   4,555   -   4,555
   Residential mortgage-backed  -   1,093   -   1,093
   U.S. government and federal agency(c)  -   5,253   -   5,253
   Other debt securities(d)  -   2,317   -   2,317
Private equities(a)  -   -   6,269   6,269
Real estate(a)  -   -   3,354   3,354
Other investments(e)  -   169   1,622   1,791
Total investments$ 18,899 $ 18,325 $ 11,245   48,469
Other(f)           (172)
Total assets         $ 48,297
            
December 31, 2012           
            
Equity securities           
   U.S. equity securities(a)$ 8,876 $ 2,462 $ - $ 11,338
   Non-U.S. equity securities(a)  6,699   1,644   -   8,343
Debt securities           
   Fixed income and cash investment funds  -   1,931   50   1,981
   U.S. corporate(b)  -   2,758   -   2,758
   Residential mortgage-backed  -   1,420   3   1,423
   U.S. government and federal agency(c)  -   5,489   -   5,489
   Other debt securities(d)  -   2,053   22   2,075
Private equities(a)  -   -   6,878   6,878
Real estate(a)  -   -   3,356   3,356
Other investments(e)  -   44   1,694   1,738
Total investments$ 15,575 $ 17,801 $ 12,003   45,379
Other(f)           (641)
Total assets         $ 44,738
            
            

(a)       Included direct investments and investment funds.

(b)       Primarily represented investment-grade bonds of U.S. issuers from diverse industries.

(c)       Included short-term investments to meet liquidity needs.

(d)       Primarily represented investments in non-U.S. corporate bonds, non-U.S. government bonds and commercial mortgage-backed securities.

(e)       Substantially all represented hedge fund investments.

(f)       Primarily represented net unsettled transactions related to purchases and sales of investments and accrued income receivables.

 
Changes in Level 3 Investments
Changes in Level 3 Investments for the Year Ended December 31, 2013
              
              
              
              
        Purchases, Transfers  
         issuances in and/or  
 January 1, Net realized Net unrealized and out of December 31,
(In millions)2013 gains (losses) gains (losses) settlements Level 3(a)2013
                  
Debt securities                 
   Fixed income and cash                  
      investment funds$ 50 $ (7) $ - $ (43) $ - $ -
   Residential mortgage-backed  3   -   -   -   (3)   -
   Other debt securities  22   -   -   (22)   -   -
Private equities  6,878   525   588   (1,675)   (47)   6,269
Real estate  3,356   23   330   (355)   -   3,354
Other investments 1,694  (1)  200  (77)  (194)  1,622
 $12,003 $540 $1,118 $(2,172) $(244) $11,245
                  
                  

(a)       Transfers in and out of Level 3 are considered to occur at the beginning of the period.

Changes in Level 3 Investments for the Year Ended December 31, 2012
              
              
              
              
        Purchases, Transfers  
         issuances in and/or  
 January 1, Net realized Net unrealized and out of December 31,
(In millions)2012 gains (losses) gains (losses) settlements Level 3(a)2012
                  
Debt securities                 
   Fixed income and cash                  
      investment funds$ 62 $ - $ 9 $ (21) $ - $ 50
   U.S. corporate  3   (1)   -   (2)   -   -
   Residential mortgage-backed  5   (2)   -   -   -   3
   Other debt securities  146   (2)   -   (122)   -   22
Private equities  6,786   133   438   (479)   -   6,878
Real estate  3,274   20   279   (217)   -   3,356
Other investments  1,709   32   72   (71)   (48)   1,694
 $ 11,985 $ 180 $ 798 $ (912) $ (48) $ 12,003
                  
                  

(a)       Transfers in and out of Level 3 are considered to occur at the beginning of the period.

 
Pension Asset (Liability)
Pension Asset (Liability)           
 Principal pension plans Other pension plans
December 31 (In millions)2013 2012 2013 2012
            
Funded status(a)(b)$(9,816) $(18,764) $(2,476) $(3,882)
Pension asset (liability) recorded in the           
   Statement of Financial Position           
      Pension asset$ - $ - $325 $141
      Pension liabilities           
         Due within one year(c) (170)  (159)  (67)  (62)
         Due after one year (9,646)  (18,605)  (2,734)  (3,961)
Net amount recognized$(9,816) $(18,764) $(2,476) $(3,882)
Amounts recorded in shareowners’            
   equity (unamortized)           
      Prior service cost (credit)$1,160 $1,406 $9 $(4)
      Net actuarial loss 11,555  24,437  2,459  3,962
Total$12,715 $25,843 $2,468 $3,958
            
            

(a)       Fair value of assets less PBO, as shown in the preceding tables.

(b)       The GE Pension Plan was underfunded by $4.7 billion and $13.3 billion at December 31, 2013 and December 31, 2012, respectively.

(c)       For principal pension plans, represents the GE Supplementary Pension Plan liability.

 
Estimated Future Benefit Payments
Estimated Future Benefit Payments 
                 2019-
(In millions) 2014  2015  2016  2017  2018  2023 
                   
Principal pension$3,105 $3,175 $3,240 $3,310 $3,380 $18,370 
   plans                  
Other pension                  
   plans$495 $505 $510 $525 $540 $2,935 
Retiree Benefit Plan [Member]
  
Defined Benefit Plan Disclosure [Line Items]  
Pension Plan Participants
Cost of Principal Retiree Benefit Plans        
(In millions)2013 2012 2011
         
Service cost for benefits earned$ 229 $ 219 $ 216
Prior service cost amortization  393   518   647
Expected return on plan assets  (60)   (73)   (97)
Interest cost on benefit obligations  410   491   604
Net actuarial loss (gain) amortization  (45)   32   (110)
Net curtailment/settlement gain  -   (101)   -
Retiree benefit plans cost$ 927 $ 1,086 $ 1,260
         
         
Actuarial Assumptions
December 312013 2012 2011 2010 
         
Discount rate 4.61% 3.74%(a) 4.09%(a) 5.15%
Compensation increases 4.00  3.90  3.75  4.25 
Expected return on assets 7.00  7.00  7.00  8.00 
Initial healthcare trend rate(b) 6.00  6.50  7.00  7.00 
         
         

  • Weighted average discount rates of 3.77% and 3.94% were used for determination of costs in 2013 and 2012, respectively.
  • For 2013, ultimately declining to 5% for 2030 and thereafter.

 
Accumulated Benefit Obligation
Accumulated Postretirement Benefit Obligation (APBO)      
(In millions) 2013  2012 
       
Balance at January 1$ 11,804 $ 13,056 
Service cost for benefits earned  229   219 
Interest cost on benefit obligations  410   491 
Participant contributions  52   54 
Plan amendments  -   (832) 
Actuarial gain  (1,836)(a)  (60) 
Benefits paid  (746)   (758) 
Net curtailment/settlement  -   (366) 
Balance at December 31(b)$ 9,913 $ 11,804 
       
       

(a)       Primarily associated with discount rate change and lower costs from new healthcare supplier contracts.

(b)       The APBO for the retiree health plans was $7,626 million and $9,218 million at year-end 2013 and 2012, respectively.

 
Effect of a One Percentage Point Change in Assumed Healthcare Cost Trend Rate
 1% 1%
(In millions)Increase Decrease
      
APBO at December 31, 2013$ 788 $ (671)
Service and interest cost in 2013  63   (52)
Fair Value of Plan Assets
Fair Value of Plan Assets     
(In millions) 2013  2012
      
Balance at January 1$ 946 $ 1,004
Actual gain on plan assets  118   98
Employer contributions  533   548
Participant contributions  52   54
Benefits paid  (746)   (758)
Balance at December 31$ 903 $ 946
      
Asset Allocation
Asset Allocation    
December 312013 2013 
 Target Actual 
 allocation allocation 
     
Equity securities35 - 75%(a) 39%(b)
Debt securities (including cash equivalents)11 - 46  38 
Private equities0 - 25  14 
Real estate0 - 12  7 
Other0 - 10  2 
     
     

(a)       Target allocations were 18-38% for U.S. equity securities and 17-37% for non-U.S. equity securities.

(b)       Actual allocations were 23% for U.S. equity securities and 16% for non-U.S. equity securities.

 
Pension Asset (Liability)
Retiree Benefit Asset (Liability)     
December 31 (In millions) 2013  2012
      
Funded status(a)$ (9,010) $ (10,858)
Liability recorded in the Statement of Financial Position     
   Retiree health plans     
      Due within one year$ (531) $ (589)
      Due after one year  (7,095)   (8,629)
   Retiree life plans  (1,384)   (1,640)
Net liability recognized$ (9,010) $ (10,858)
Amounts recorded in shareowners' equity (unamortized)     
   Prior service cost$ 963 $ 1,356
   Net actuarial loss (gain)  (1,667)   182
Total$ (704) $ 1,538
      
      

(a)       Fair value of assets less APBO, as shown in the preceding tables.

 
Estimated Future Benefit Payments
Estimated Future Benefit Payments 
                 2019–
(In millions) 2014  2015  2016  2017  2018  2023 
                   
 $ 725 $ 725 $ 725 $ 725 $ 725 $ 3,500 
                   
Postretirement Benefit Plans
 Total Principal Other Retiree
 postretirement pension pension benefit
(In millions)benefit plans plans plans plans
            
Cost of postretirement benefit plans$ 5,977 $ 4,405 $ 645 $ 927
Changes in other comprehensive income           
      Prior service cost – current year  11   -   11   -
      Net actuarial gain – current year(a)  (12,263)   (9,218)   (1,151)   (1,894)
      Prior service cost amortization  (646)   (246)   (7)   (393)
      Net actuarial gain (loss) amortization  (3,962)   (3,664)   (343)   45
Total changes in other comprehensive income  (16,860)   (13,128)   (1,490)   (2,242)
Cost of postretirement benefit plans and           
   changes in other comprehensive income$ (10,883) $ (8,723) $ (845) $ (1,315)
            

  • Principally associated with discount rate changes and plan asset gains in excess of expected return on plan assets.