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) January 23, 2015
 
 
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.)
   
 
   
3135 Easton Turnpike, Fairfield, Connecticut
     
06828-0001
(Address of principal executive offices)
     
(Zip Code)
   
 
   
Registrant's telephone number, including area code   (203) 373-2211
 
     
(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 (see General Instructions A.2. below):
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))

 

Item 2.02 Results of Operations and Financial Condition.
On January 23, 2015, General Electric Company (the "Company") issued a press release setting forth GE's fourth-quarter 2014 earnings. A copy of GE's press release is being furnished as Exhibit 99 and hereby incorporated by reference.

The information furnished pursuant to this Item 2.02, including Exhibit 99, 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:

Exhibit Description

99      Press release, dated: January 23, 2015, issued by General Electric Company

 

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: January 23, 2015
 
/s/ Jan R. Hauser
 
   
Jan R. Hauser
Vice President and Controller
 

 


 

 




GENERAL ELECTRIC COMPANY
   
CONDENSED STATEMENT OF EARNINGS
   
(unaudited)
   
 
Consolidated
   
GE(a)
 
Financial Services (GECC)
Three months ended December 31
2014
 
2013
V%
   
2014
 
2013
V%
 
2014
 
2013
 
V%
                                                 
Revenues and other income
                                               
Sales of goods and services
$
 30,920
 
$
 28,701
 
8%
   
$
 31,046
 
$
 28,826
 
8%
 
$
 32
 
$
 36
 
(11)%
Other income
 
 (14)
   
 1,026
         
 18
   
 993
       
 -
   
 -
   
GECC earnings from continuing operations
 
 -
   
 -
         
 2,052
   
 2,493
       
 -
   
 -
   
GECC revenues from services
 
 11,098
   
 10,655
         
 -
   
 -
       
 11,480
   
 11,041
   
   Total revenues and other income
 
 42,004
   
 40,382
 
4%
     
 33,116
   
 32,312
 
2%
   
 11,512
   
 11,077
 
4%
Costs and expenses
                                               
Cost of sales
 
 23,043
   
 21,880
         
 23,179
   
 22,006
       
 23
   
 33
   
Interest and other financial charges
 
 2,366
   
 2,468
         
 437
   
 345
       
 2,072
   
 2,273
   
Investment contracts, insurance losses and
                                               
   insurance annuity benefits
 
 608
   
 654
         
 -
   
 -
       
 637
   
 648
   
Provision for losses on financing receivables
 
 1,098
   
 1,562
         
 -
   
 -
       
 1,098
   
 1,562
   
Other costs and expenses
 
 8,810
   
 9,159
         
 3,616
   
 4,225
       
 5,435
   
 5,145
   
   Total costs and expenses
 
 35,925
   
 35,723
 
1%
     
 27,232
   
 26,576
 
2%
   
 9,265
   
 9,661
 
(4)%
Earnings from continuing operations
                                               
   before income taxes
 
 6,079
   
 4,659
 
30%
     
 5,884
   
 5,736
 
3%
   
 2,247
   
 1,416
 
59%
Benefit (provision) for income taxes
 
 (600)
   
 490
         
 (491)
   
 (602)
       
 (109)
   
 1,092
   
Earnings from continuing operations
 
 5,479
   
 5,149
 
6%
     
 5,393
   
 5,134
 
5%
   
 2,138
   
 2,508
 
(15)%
Earnings (loss) from discontinued
                                               
   operations, net of taxes
 
 (140)
   
 (1,785)
         
 (140)
   
 (1,785)
       
 (140)
   
 (1,720)
   
Net earnings
 
 5,339
   
 3,364
 
59%
     
 5,253
   
 3,349
 
57%
   
 1,998
   
 788
 
F
Less net earnings (loss) attributable to
                                               
   noncontrolling interests
 
 187
   
 158
         
 101
   
 143
       
 86
   
 15
   
Net earnings attributable
                                               
   to the Company
 
 5,152
   
 3,206
 
61%
     
 5,152
   
 3,206
 
61%
   
 1,912
   
 773
 
F
Preferred stock dividends declared
 
 -
   
 -
         
 -
   
 -
       
 (161)
   
 (163)
   
Net earnings attributable to
                                               
   GE common shareowners
$
 5,152
 
$
 3,206
 
61%
   
$
 5,152
 
$
 3,206
 
61%
 
$
 1,751
 
$
 610
 
F
Amounts attributable to GE common
                                               
shareowners:
                                               
   Earnings from continuing operations
$
 5,479
 
$
 5,149
 
6%
   
$
 5,393
 
$
 5,134
 
5%
 
$
 2,138
 
$
 2,508
 
(15)%
   Less net earnings (loss) attributable
                                               
     to noncontrolling interests
 
 187
   
 158
         
 101
   
 143
       
 86
   
 15
   
   Earnings from continuing operations
                                               
     attributable to the Company
 
 5,292
   
 4,991
 
6%
     
 5,292
   
 4,991
 
6%
   
 2,052
   
 2,493
 
(18)%
   GECC preferred stock dividends declared
 
 -
   
 -
         
 -
   
 -
       
 (161)
   
 (163)
   
   Earnings from continuing operations
                                               
     attributable to GE common shareowners
 
 5,292
   
 4,991
 
6%
     
 5,292
   
 4,991
 
6%
   
 1,891
   
 2,330
 
(19)%
   Earnings (loss) from discontinued
                                               
     operations, net of taxes
 
 (140)
   
 (1,785)
         
 (140)
   
 (1,785)
       
 (140)
   
 (1,720)
   
Net earnings attributable to GE
                                               
   common shareowners
$
 5,152
 
$
 3,206
 
61%
   
$
 5,152
 
$
 3,206
 
61%
 
$
 1,751
 
$
 610
 
F
                                                 
Per-share amounts - earnings from
                                               
  continuing operations
                                               
Diluted earnings per share
$
 0.52
 
$
 0.49
 
6%
                                 
Basic earnings per share
$
 0.53
 
$
 0.49
 
8%
                                 
Per-share amounts - net earnings
                                               
Diluted earnings per share
$
 0.51
 
$
 0.32
 
59%
                                 
Basic earnings per share
$
 0.51
 
$
 0.32
 
59%
                                 
Total average equivalent shares
                                               
Diluted earnings
 
10,127
   
10,162
 
-%
                                 
Basic earnings
 
10,050
   
10,090
 
-%
                                 
Dividends declared per common share
$
 0.23
 
$
 0.22
 
5%
                                 
Amounts attributable to GE
                                               
common shareowners:
                                               
Earnings from continuing operations
$
 5,292
 
$
 4,991
 
6%
                                 
Adjustment (net of tax): non-operating
                                               
   pension costs/(income)
 
 343
   
 426
                                     
Operating earnings (non-GAAP measure)
$
 5,635
 
$
 5,417
 
4%
                                 
Operating earnings - diluted
                                               
  earnings per share
$
 0.56
 
$
 0.53
 
6%
                                 
(a) Refers to the Industrial businesses of the Company including GECC on an equity basis.

Dollar amounts and share amounts in millions; per-share amounts in dollars. Supplemental data are shown for "GE" and "GECC." Transactions between GE and GECC have been eliminated from the "Consolidated" columns. See Note 1 to the 2013 consolidated financial statements at www.ge.com/ar2013 for further information about consolidation matters.

GENERAL ELECTRIC COMPANY
CONDENSED STATEMENT OF EARNINGS
(unaudited)
 
Consolidated
   
GE(a)
 
Financial Services (GECC)
Twelve months ended December 31
2014
 
2013
V%
   
2014
 
2013
 
V%
2014
 
2013
V%
                                                 
Revenues and other income
                                               
Sales of goods and services
$
 106,758
 
$
 100,542
 
6%
   
$
 107,308
 
$
 101,014
 
6%
 
$
 121
 
$
 126
 
(4)%
Other income
 
 778
   
 3,108
         
 707
   
 2,886
       
 -
   
 -
   
GECC earnings from continuing operations
 
 -
   
 -
         
 7,341
   
 8,258
       
 -
   
 -
   
GECC revenues from services
 
 41,053
   
 42,395
         
 -
   
 -
       
 42,604
   
 43,941
   
   Total revenues and other income
 
 148,589
   
 146,045
 
2%
     
 115,356
   
 112,158
 
3%
   
 42,725
   
 44,067
 
(3)%
                                                 
Costs and expenses
                                               
Cost of sales
 
 81,311
   
 77,141
         
 81,877
   
 77,630
       
 104
   
 108
   
Interest and other financial charges
 
 9,482
   
 10,116
         
 1,579
   
 1,333
       
 8,397
   
 9,267
   
Investment contracts, insurance losses and
                                               
   insurance annuity benefits
 
 2,548
   
 2,676
         
 -
   
 -
       
 2,678
   
 2,779
   
Provision for losses on financing receivables
 
 3,993
   
 4,818
         
 -
   
 -
       
 3,993
   
 4,818
   
Other costs and expenses
 
 34,026
   
 35,143
         
 14,971
   
 16,105
       
 19,912
   
 19,776
   
   Total costs and expenses
 
 131,360
   
 129,894
 
1%
     
 98,427
   
 95,068
 
4%
   
 35,084
   
 36,748
 
(5)%
Earnings from continuing operations
                                               
    before income taxes
 
 17,229
   
 16,151
 
7%
     
 16,929
   
 17,090
 
(1)%
   
 7,641
   
 7,319
 
4%
Benefit (provision) for income taxes
 
 (1,772)
   
 (676)
         
 (1,634)
   
 (1,668)
       
 (138)
   
 992
   
Earnings from continuing operations
 
 15,457
   
 15,475
 
-%
     
 15,295
   
 15,422
 
(1)%
   
 7,503
   
 8,311
 
(10)%
Earnings (loss) from discontinued
                                               
    operations, net of taxes
 
 (112)
   
 (2,120)
         
 (112)
   
 (2,120)
       
 (107)
   
 (2,054)
   
Net earnings
 
 15,345
   
 13,355
 
15%
     
 15,183
   
 13,302
 
14%
   
 7,396
   
 6,257
 
18%
Less net earnings (loss) attributable to
                                               
    noncontrolling interests
 
 112
   
 298
         
 (50)
   
 245
       
 162
   
 53
   
Net earnings attributable to
                                               
   the Company
 
 15,233
   
 13,057
 
17%
     
 15,233
   
 13,057
 
17%
   
 7,234
   
 6,204
 
17%
Preferred stock dividends declared
 
 -
   
 -
         
 -
   
 -
       
 (322)
   
 (298)
   
Net earnings attributable to
                                               
   GE common shareowners
$
 15,233
 
$
 13,057
 
17%
   
$
 15,233
 
$
 13,057
 
17%
 
$
 6,912
 
$
 5,906
 
17%
Amounts attributable to GE common
                                               
shareowners:
                                               
   Earnings from continuing operations
$
 15,457
 
$
 15,475
 
-%
   
$
 15,295
 
$
 15,422
 
(1)%
 
$
 7,503
 
$
 8,311
 
(10)%
   Less net earnings (loss) attributable
                                               
     to noncontrolling interests
 
 112
   
 298
         
 (50)
   
 245
       
 162
   
 53
   
   Earnings from continuing operations
                                               
     attributable to the Company
 
 15,345
   
 15,177
 
1%
     
 15,345
   
 15,177
 
1%
   
 7,341
   
 8,258
 
(11)%
   GECC preferred stock dividends declared
 
 -
   
 -
         
 -
   
 -
       
 (322)
   
 (298)
   
   Earnings from continuing operations
                                               
      attributable to GE common shareowners
 
 15,345
   
 15,177
 
1%
     
 15,345
   
 15,177
 
1%
   
 7,019
   
 7,960
 
(12)%
   Earnings (loss) from discontinued
                                               
      operations, net of taxes
 
 (112)
   
 (2,120)
         
 (112)
   
 (2,120)
       
 (107)
   
 (2,054)
   
Net earnings attributable to GE
                                               
   common shareowners
$
 15,233
 
$
 13,057
 
17%
   
$
 15,233
 
$
 13,057
 
17%
 
$
 6,912
 
$
 5,906
 
17%
                                                 
Per-share amounts - earnings from
                                               
   continuing operations
                                               
Diluted earnings per share
$
 1.51
 
$
1.47
 
3%
                                 
Basic earnings per share
$
 1.53
 
$
1.48
 
3%
                                 
Per-share amounts - net earnings
                                               
Diluted earnings per share
$
 1.50
 
$
1.27
 
18%
                                 
Basic earnings per share
$
 1.51
 
$
1.28
 
18%
                                 
Total average equivalent shares
                                               
Diluted earnings
 
10,123
   
10,289
 
(2)%
                                 
Basic earnings
 
10,045
   
10,222
 
(2)%
                                 
Dividends declared per common share
$
0.89
 
$
0.79
 
13%
                                 
                                                 
Amounts attributable to GE
                                               
common shareowners:
                                               
Earnings from continuing operations
$
 15,345
 
$
 15,177
 
1%
                                 
Adjustment (net of tax): non-operating
                                               
   pension costs/(income)
 
 1,378
   
 1,705
                                     
Operating earnings (non-GAAP measure)
$
 16,723
 
$
 16,882
 
(1)%
                                 
Operating earnings - diluted
                                               
   earnings per share
$
 1.65
 
$
 1.64
 
1%
                                 
(a) Refers to the Industrial businesses of the Company including GECC on an equity basis.

Dollar amounts and share amounts in millions; per-share amounts in dollars. Supplemental data are shown for "GE" and "GECC." Transactions between GE and GECC have been eliminated from the "Consolidated" columns. See Note 1 to the 2013 consolidated financial statements at www.ge.com/ar2013 for further information about consolidation matters.
 

GENERAL ELECTRIC COMPANY
                             
SUMMARY OF OPERATING SEGMENTS
                             
(unaudited)
                             
 
Three months ended December 31
 
Twelve months ended December 31
(Dollars in millions)
2014
 
2013
 
V%
 
2014
 
2013
 
V%
                               
Revenues(a)
                             
   Power & Water
$
 9,388
 
$
 7,686
 
22%
 
$
 27,564
 
$
 24,724
 
11%
   Oil & Gas
 
 5,010
   
 5,306
 
(6)%
   
 18,676
   
 16,975
 
10%
   Energy Management
 
 1,978
   
 2,012
 
(2)%
   
 7,319
   
 7,569
 
(3)%
   Aviation
 
 6,424
   
 6,170
 
4%
   
 23,990
   
 21,911
 
9%
   Healthcare
 
 5,133
   
 5,117
 
-%
   
 18,299
   
 18,200
 
1%
   Transportation
 
 1,577
   
 1,460
 
8%
   
 5,650
   
 5,885
 
(4)%
   Appliances & Lighting
 
 2,310
   
 2,196
 
5%
   
 8,404
   
 8,338
 
1%
   Total industrial segment revenues
 
 31,820
   
 29,947
 
6%
   
 109,902
   
 103,602
 
6%
   GE Capital
 
 11,512
   
 11,077
 
4%
   
 42,725
   
 44,067
 
(3)%
   Total segment revenues
 
 43,332
   
 41,024
 
6%
   
 152,627
   
 147,669
 
3%
   Corporate items and eliminations(a)
 
 (1,328)
   
 (642)
 
U
   
 (4,038)
   
 (1,624)
 
U
Consolidated revenues and other income
                             
  from continuing operations
$
 42,004
 
$
 40,382
 
4%
 
$
 148,589
 
$
 146,045
 
2%
                               
Segment profit(a)
                             
   Power & Water
$
 2,140
 
$
 1,897
 
13%
 
$
 5,352
 
$
 4,992
 
7%
   Oil & Gas
 
 814
   
 802
 
1%
   
 2,585
   
 2,178
 
19%
   Energy Management
 
 113
   
 46
 
F
   
 246
   
 110
 
F
   Aviation
 
 1,397
   
 1,251
 
12%
   
 4,973
   
 4,345
 
14%
   Healthcare
 
 1,020
   
 1,062
 
(4)%
   
 3,047
   
 3,048
 
-%
   Transportation
 
 316
   
 280
 
13%
   
 1,130
   
 1,166
 
(3)%
   Appliances & Lighting
 
 188
   
 142
 
32%
   
 431
   
 381
 
13%
   Total industrial segment profit
 
 5,988
   
 5,480
 
9%
   
 17,764
   
 16,220
 
10%
   GE Capital
 
 1,891
   
 2,330
 
(19)%
   
 7,019
   
 7,960
 
(12)%
   Total segment profit
 
 7,879
   
 7,810
 
1%
   
 24,783
   
 24,180
 
2%
Corporate items and eliminations(a)
 
 (1,659)
   
 (1,872)
 
11%
   
 (6,225)
   
 (6,002)
 
(4)%
GE interest and other financial charges
 
 (437)
   
 (345)
 
(27)%
   
 (1,579)
   
 (1,333)
 
(18)%
GE provision for income taxes
 
 (491)
   
 (602)
 
18%
   
 (1,634)
   
 (1,668)
 
2%
Earnings from continuing operations
                             
   attributable to the Company
 
 5,292
   
 4,991
 
6%
   
 15,345
   
 15,177
 
1%
Earnings (loss) from discontinued operations,
                             
   net of taxes
 
 (140)
   
 (1,785)
 
92%
   
 (112)
   
 (2,120)
 
95%
Consolidated net earnings attributable to
                             
   the Company
$
 5,152
 
$
 3,206
 
61%
 
$
 15,233
 
$
 13,057
 
17%
                               

(a)
Segment revenues includes both revenues and other income related to the segment. Segment profit excludes results reported as discontinued operations, the portion of earnings attributable to noncontrolling interests of consolidated subsidiaries, and accounting changes. Segment profit excludes or includes interest and other financial charges and income taxes 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 & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation and Appliances & Lighting; included in determining segment profit, which we sometimes refer to as "net earnings," for GE 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 are allocated based on each segment's relative net cost of operations. Effective in the second quarter of 2014, we began reporting our GE Capital segment results including the effects of the GECC preferred stock dividends.  The cost of these dividends had previously been reported in the GE Corporate Items and Eliminations line in the Company's Summary of Operating Segments table. Presenting GE Capital segment results including the effects of the GECC preferred stock dividends aligns the way management currently measures the results of our financial services business. Prior-period information has been reclassified to be consistent with how we currently measure GE Capital.

 

GENERAL ELECTRIC COMPANY
SUMMARY OF OPERATING SEGMENTS
Additional Information
(unaudited)
                             
 
Three months ended December 31
 
Twelve months ended December 31
(Dollars in millions)
2014
 
2013
 
V%
 
2014
 
2013
 
V%
                               
GE Capital
                             
                               
  Revenues
$
 11,512
 
$
 11,077
 
4%
 
$
 42,725
 
$
 44,067
 
(3)%
                               
  Segment profit
$
 1,891
 
$
 2,330
 
(19)%
 
$
 7,019
 
$
 7,960
 
(12)%
                               
Revenues
                             
Commercial Lending and Leasing (CLL)
$
 3,756
 
$
 3,225
 
16%
 
$
 14,630
 
$
 14,316
 
2%
Consumer
 
 4,201
   
 4,583
 
(8)%
   
 15,023
   
 15,741
 
(5)%
Real Estate
 
 977
   
 697
 
40%
   
 2,969
   
 3,915
 
(24)%
Energy Financial Services
 
 577
   
 442
 
31%
   
 1,697
   
 1,526
 
11%
GE Capital Aviation Services (GECAS)
 
 1,290
   
 1,373
 
(6)%
   
 5,242
   
 5,346
 
(2)%
                               
                               
Segment profit
                             
CLL
$
 549
 
$
 263
 
F
 
$
 2,271
 
$
 1,965
 
16%
Consumer
 
 1,137
   
 2,057
 
(45)%
   
 3,016
   
 4,319
 
(30)%
Real Estate
 
 299
   
 128
 
F
   
 1,002
   
 1,717
 
(42)%
Energy Financial Services
 
 111
   
 117
 
(5)%
   
 401
   
 410
 
(2)%
GECAS
 
 218
   
 71
 
F
   
 1,046
   
 896
 
17%
 

GENERAL ELECTRIC COMPANY
                                     
CONDENSED STATEMENT OF FINANCIAL POSITION
 
(unaudited)
 
                                       
 
Consolidated
   
GE(a)
 
Financial Services (GECC)
 
 
December 31,
 
December 31,
   
December 31,
 
December 31,
 
December 31,
 
December 31,
 
(Dollars in billions)
2014
 
2013
   
2014
 
2013
 
2014
 
2013
 
                           
Assets
                                     
Cash & marketable securities
$
 138.1
 
$
 132.5
   
$
 16.0
 
$
 14.0
 
$
 122.1
 
$
 118.5
 
Receivables
 
 23.2
   
 21.4
     
 11.5
   
 11.0
   
 -
   
 -
 
Inventories
 
 17.7
   
 17.3
     
 17.6
   
 17.3
   
 0.1
   
 0.1
 
Financing receivables – net
 
 224.8
   
 241.9
     
 -
   
 -
   
 237.0
   
 253.0
 
Property, plant and equipment – net
 
 66.4
   
 68.8
     
 17.2
   
 17.6
   
 49.6
   
 51.6
 
Investment in GECC
 
 -
   
 -
     
 82.5
   
 77.7
   
 -
   
 -
 
Goodwill & intangible assets
 
 90.7
   
 92.0
     
 64.5
   
 64.6
   
 26.2
   
 27.3
 
Other assets
 
 79.9
   
 80.3
     
 33.6
   
 28.8
   
 54.3
   
 59.1
 
Assets of businesses held for sale
 
 6.3
   
 0.1
     
 2.8
   
 -
   
 3.5
   
 0.1
 
Assets of discontinued operations
 
 1.2
   
 2.3
     
 -
   
 -
   
 1.2
   
 2.3
 
Total assets
$
 648.3
 
$
 656.6
   
$
 245.7
 
$
 231.0
 
$
 494.0
 
$
 512.0
 
                                       
Liabilities and equity
                                     
Borrowings and bank deposits
$
 365.0
 
$
 383.0
   
$
 16.3
 
$
 13.4
 
$
 349.5
 
$
 371.1
 
Investment contracts, insurance liabilities
                                     
   and insurance annuity benefits
 
 27.6
   
 26.5
     
 -
   
 -
   
 28.0
   
 27.0
 
Other liabilities
 
 114.2
   
 106.4
     
 98.7
   
 86.1
   
 22.6
   
 27.0
 
Liabilities of businesses held for sale
 
 3.4
   
 -
     
 1.5
   
 -
   
 2.4
   
 -
 
Liabilities of discontinued operations
 
 1.2
   
 3.9
     
 0.1
   
 0.1
   
 1.1
   
 3.8
 
Total GE shareowners' equity
 
 128.2
   
 130.6
     
 128.2
   
 130.6
   
 87.5
   
 82.7
 
Noncontrolling interests
 
 8.7
   
 6.2
     
 0.8
   
 0.8
   
 2.9
   
 0.4
 
Total liabilities and equity
$
 648.3
 
$
 656.6
   
$
 245.7
 
$
 231.0
 
$
 494.0
 
$
 512.0
 
                                       
(a) Refers to the Industrial businesses of the Company including GECC on an equity basis.

Supplemental data are shown for "GE" and "GECC." Transactions between GE and GECC have been eliminated from the "Consolidated" columns. See Note 1 to the 2013 consolidated financial statements at www.ge.com/ar2013 for further information about consolidation matters.



 

GENERAL ELECTRIC COMPANY
Financial Measures That Supplement GAAP


We sometimes use information derived from consolidated financial information 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. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. We have referred to:
·
Operating earnings and operating earnings per share (EPS)
·
Industrial operating earnings, GE Capital operating earnings, Industrial operating EPS and GE Capital operating EPS
·
Industrial segment organic revenue growth
·
GE Capital ending net investment (ENI), excluding liquidity
·
Industrial cash flows from operating activities (Industrial CFOA) and Industrial CFOA excluding effects of NBCU deal-related taxes
·
Oil & Gas organic revenue and profit growth

The reconciliations of these measures to the most comparable GAAP measures follow.

OPERATING EARNINGS AND OPERATING EARNINGS PER SHARE (EPS)
                   
         
 
Three months ended December 31
   
Twelve months ended December 31
(Dollars in millions; except earnings per share)
2014
 
2013
 
V%
 
2014
 
2013
 
V%
                               
Earnings from continuing operations attributable to GE
$
 5,292
 
$
 4,991
 
6%
 
$
 15,345
 
$
 15,177
 
1%
Adjustment (net of tax): non-operating pension costs/(income)
 
 343
   
 426
       
 1,378
   
 1,705
   
Operating earnings
$
 5,635
 
$
 5,417
 
4%
 
$
 16,723
 
$
 16,882
 
(1%)
                               
Earnings per share – diluted(a)
                             
Continuing earnings per share
$
 0.52
 
$
 0.49
 
6%
 
$
 1.51
 
$
 1.47
 
3%
Adjustment (net of tax): non-operating pension costs/(income)
 
 0.03
   
 0.04
       
 0.14
   
 0.16
   
Operating earnings per share
$
 0.56
 
$
 0.53
 
6%
 
$
 1.65
 
$
 1.64
 
1%
                               
(a)
Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.


 

INDUSTRIAL OPERATING EARNINGS, GE CAPITAL OPERATING EARNINGS,
INDUSTRIAL OPERATING EPS AND GE CAPITAL OPERATING EPS
   
                               
 
Three months ended December 31
   
Twelve months ended December 31
(Dollars in millions; except earnings per share)
 
2014
   
2013
 
V%
   
2014
   
2013
 
V%
                               
Earnings from continuing operations attributable to GE
$
 5,292
 
$
 4,991
     
$
 15,345
 
$
 15,177
   
Adjustments (net of tax): non-operating pension costs (income)
 
 343
   
 426
       
 1,378
   
 1,705
   
Operating earnings
 
 5,635
   
 5,417
 
4%
   
 16,723
   
 16,882
 
(1)%
                               
Less GECC earnings from continuing operations
                             
   attributable to GE common shareowners
 
 1,891
   
 2,330
       
 7,019
   
 7,960
   
Operating earnings excluding GECC earnings from continuing
                             
   operations attributable to GE common shareowners
                             
     (Industrial operating earnings)
$
 3,744
 
$
 3,087
 
21%
 
$
 9,704
 
$
 8,922
 
9%
Operating earnings less Industrial operating
                             
   earnings (GE Capital operating earnings)
 
 1,891
   
 2,330
 
(19)%
   
 7,019
   
 7,960
 
(12)%
Operating earnings
 
 5,635
   
 5,417
       
 16,723
   
 16,882
   
   
                             
Industrial operating earnings as a percentage of
                             
   operating earnings
 
66%
   
57%
       
58%
   
53%
   
GE Capital earnings as a percentage of operating earnings
 
34%
   
43%
       
42%
   
47%
   
                               
Allocated portion of operating EPS attributable
                             
   to Industrial (Industrial operating EPS)
$
 0.37
 
$
 0.30
 
23%
 
$
 0.96
 
$
 0.87
 
10%
Allocated portion of operating EPS attributable
                             
   to GE Capital (GE Capital operating EPS)
 
 0.19
   
 0.23
 
(17)%
   
 0.69
   
 0.77
 
(10)%
Total operating EPS
$
 0.56
 
$
 0.53
 
6%
 
$
 1.65
 
$
 1.64
 
1%
                               

Operating earnings excludes non-service-related pension costs of our principal pension plans comprising interest cost, expected return on plan assets and amortization of actuarial gains/losses. The service cost, prior service cost and curtailment loss components of our principal pension plans are included in operating earnings. We believe that these components of pension cost better reflect the ongoing service-related costs of providing pension benefits to our employees. As such, we believe that our measure of operating earnings provides management and investors with a useful measure of the operational results of our business. Other components of GAAP pension cost are mainly driven by capital allocation decisions and market performance, and we manage these separately from the operational performance of our businesses. Neither GAAP nor operating pension costs are necessarily indicative of the current or future cash flow requirements related to our pension plan. We also believe that this measure, considered along with the corresponding GAAP measure, provides management and investors with additional information for comparison of our operating results to the operating results of other companies. We believe that presenting operating earnings separately for our industrial and financial services businesses also provides management and investors with useful information about the relative size of our industrial and financial services businesses in relation to the total company.

 

INDUSTRIAL SEGMENT ORGANIC REVENUE GROWTH
                 
 
Three Months Ended December 31
(Dollars in millions)
 
2014
   
2013
 
V%
 
                 
Segment revenues:
               
    Power & Water
$
 9,388
 
$
 7,686
     
    Oil & Gas
 
 5,010
   
 5,306
     
    Energy Management
 
 1,978
   
 2,012
     
    Aviation
 
 6,424
   
 6,170
     
    Healthcare
 
 5,133
   
 5,117
     
    Transportation
 
 1,577
   
 1,460
     
    Appliances & Lighting
 
 2,310
   
 2,196
     
Industrial segment revenues
 
 31,820
   
 29,947
 
6%
 
Less the effects of:
               
     Acquisitions, business dispositions (other than
               
     dispositions of businesses acquired for investment)
               
     and currency exchange rates
 
 (417)
   
 446
     
Industrial segment revenues excluding effects of acquisitions,
               
     business dispositions (other than dispositions of
               
     businesses acquired for investment) and currency
               
     exchange rates (Industrial segment organic revenues)
$
 32,237
 
$
 29,501
 
9%
 
                 
                 
 
Twelve Months Ended December 31
(Dollars in millions)
 
2014
   
2013
 
V%
 
                 
Segment revenues:
               
    Power & Water
$
 27,564
 
$
 24,724
     
    Oil & Gas
 
 18,676
   
 16,975
     
    Energy Management
 
 7,319
   
 7,569
     
    Aviation
 
 23,990
   
 21,911
     
    Healthcare
 
 18,299
   
 18,200
     
    Transportation
 
 5,650
   
 5,885
     
    Appliances & Lighting
 
 8,404
   
 8,338
     
Industrial segment revenues
 
 109,902
   
 103,602
 
6%
 
Less the effects of:
               
     Acquisitions, business dispositions (other than
               
     dispositions of businesses acquired for investment)
               
     and currency exchange rates
 
 1,871
   
 2,175
     
Industrial segment revenues excluding effects of acquisitions,
               
     business dispositions (other than dispositions of
               
     businesses acquired for investment) and currency
               
     exchange rates (Industrial segment organic revenues)
$
 108,031
 
$
 101,427
 
7%
 
                 

Organic revenue growth measures revenue excluding the effects of acquisitions, business dispositions and currency exchange rates.  We believe that this measure provides management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and currency exchange, which activities are subject to volatility and can obscure underlying trends.  We also believe that presenting organic revenue growth separately for our industrial businesses provides management and investors with useful information about the trends of our industrial businesses and enables a more direct comparison to other non-financial businesses and companies.  Management recognizes that the term "organic revenue growth" 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.
 
 

GE CAPITAL ENDING NET INVESTMENT (ENI), EXCLUDING LIQUIDITY
     
(Dollars in billions)
December 31, 2014
   
September 30, 2014
   
December 31, 2013
                 
Financial Services (GECC) total assets
$
 494.0
 
$
 501.2
 
$
 512.0
Adjustment: deferred income taxes
 
 6.2
   
 5.7
   
 4.8
GECC total assets
 
 500.2
   
 506.9
   
 516.8
   Less assets of discontinued operations
 
 1.2
   
 1.3
   
 2.3
   Less non-interest bearing liabilities
 
 60.5
   
 60.9
   
 59.3
GE Capital ENI
 
 438.5
   
 444.7
   
 455.2
   Less liquidity(a)
 
 75.5
   
 79.9
   
 74.9
GE Capital ENI, excluding liquidity
$
 363.0
 
$
 364.8
 
$
 380.3
                 
Variance to September 30, 2014
$
 (1.8)
           
Percentage variance to September 30, 2014
 
-%
           
Variance to December 31, 2013
$
 (17.3)
           
Percentage variance to December 31, 2013
 
(5)%
           
                 
(a)
Liquidity includes cash and equivalents and $1.2 billion of debt obligations of the U.S. Treasury at December 31, 2014.

We use ENI to measure the size of our GE Capital segment. We believe that this measure is a useful indicator of the capital (debt or equity) required to fund a business as it adjusts for non-interest bearing current liabilities generated in the normal course of business that do not require a capital outlay. We also believe that by excluding liquidity, we provide a meaningful measure of assets requiring capital to fund our GE Capital segment as a substantial amount of liquidity resulted from debt issuances to pre-fund future debt maturities and will not be used to fund additional assets. Liquidity consists of cash and equivalents and certain debt obligations of the U.S. Treasury. As a general matter, investments included in liquidity are expected to be highly liquid, giving us the ability to readily convert them to cash. Providing this measure will help investors measure how we are performing against our previously communicated goal to reduce the size of our financial services segment.
 
 

INDUSTRIAL CASH FLOWS FROM OPERATING ACTIVITIES (INDUSTRIAL CFOA) AND INDUSTRIAL CFOA EXCLUDING THE EFFECTS OF NBCU DEAL-RELATED TAXES
                               
 
Three months ended December 31
 
Twelve months ended December 31
(Dollars in millions)
 
2014
   
2013
 
V%
   
2014
   
2013
 
V%
                               
Cash from GE's operating activities (continuing operations),
                             
   as reported
$
7,996
 
$
6,427
 
24%
 
$
15,171
 
$
14,255
 
6%
Less dividends from GECC
 
779
   
2,038
       
3,000
   
5,985
   
Cash from GE's operating activities (continuing operations),
                             
   excluding dividends from GECC (Industrial CFOA)
$
7,217
 
$
4,389
 
64%
 
$
12,171
 
$
8,270
 
47%
Adjustment: effects of NBCU deal-related taxes
       
1,168
             
3,184
   
Industrial CFOA excluding effects of NBCU deal-related taxes
 
7,217
   
5,557
 
30%
   
12,171
   
11,454
 
6%
                               

We refer to cash generated by our industrial businesses as "Industrial CFOA," which we define as GE's cash from continuing operating activities less the amount of dividends received by GE from GECC. This includes the effects of intercompany transactions, including GE customer receivables sold to GECC; GECC services for trade receivables management and material procurement; buildings and equipment (including automobiles) leased between GE and GECC; information technology (IT) and other services sold to GECC by GE; aircraft engines manufactured by GE that are installed on aircraft purchased by GECC from third-party producers for lease to others; and various investments, loans and allocations of GE corporate overhead costs. We believe that investors may find it useful to compare GE's operating cash flows without the effect of GECC dividends, since these dividends are not representative of the operating cash flows of our industrial businesses and can vary from period-to-period based upon the results of the financial services businesses. We also believe that investors may find it useful to compare Industrial CFOA excluding the effects of taxes paid related to the 2013 NBCU transaction. Management recognizes that these measures may not be comparable to cash flow results of companies that contain both industrial and financial services businesses, but believes that this comparison is aided by the provision of additional information about the amounts of dividends paid by our financial services business and the separate presentation in our financial statements of the Financial Services (GECC) cash flows. We believe that our measures of Industrial CFOA and Industrial CFOA excluding NBCU deal-related taxes provide management and investors with useful measures to compare the capacity of our industrial operations to generate operating cash flows with the operating cash flows of other non-financial businesses and companies and as such provide useful measures to supplement the reported GAAP CFOA measure.
 
 

 

 
 
 
 
OIL & GAS ORGANIC REVENUE GROWTH
                 
 
Three Months Ended December 31
(Dollars in millions)
 
2014
   
2013
 
V%
 
                 
Oil & Gas segment revenue
$
 5,010
 
$
 5,306
 
(6)%
 
Less the effects of:
               
     Acquisitions, business dispositions (other than
               
     dispositions of businesses acquired for investment)
               
     and currency exchange rates
 
 (78)
   
 221
     
Oil & Gas revenues excluding effects of acquisitions,
               
     business dispositions (other than dispositions of
               
     businesses acquired for investment) and currency
               
     exchange rates (Oil & Gas organic revenue)
$
 5,088
 
$
 5,085
 
-%
 
                 

 
 
 
 
OIL & GAS ORGANIC PROFIT GROWTH
                 
 
Three Months Ended December 31
(Dollars in millions)
 
2014
   
2013
 
V%
 
                 
Oil & Gas segment profit
$
 814
 
$
 802
 
1%
 
Less the effects of:
               
     Acquisitions, business dispositions (other than
               
     dispositions of businesses acquired for investment)
               
     and currency exchange rates
 
 (20)
   
 18
     
Oil & Gas segment profit excluding effects of acquisitions,
               
     business dispositions (other than dispositions of
               
     businesses acquired for investment) and currency
               
     exchange rates (Oil & Gas organic profit)
$
 834
 
$
 784
 
6%
 
                 

Organic revenue and operating profit growth measure revenue and profit excluding the effects of acquisitions, business dispositions and currency exchange rates. We believe that these measures provide management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and currency exchange, which activities are subject to volatility and can obscure underlying trends. Management recognizes that the terms "organic revenue growth" and "organic profit growth" 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 Oil & Gas business and may therefore be a useful tool in assessing period-to-period performance trends.
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