GENERAL ELECTRIC CO - FORM 8-K - EX-99 - October 16, 2015

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8-K - GENERAL ELECTRIC COge8k3q2015.htm
Exhibit 99
 
 
 
GENERAL ELECTRIC COMPANY
                                          
CONDENSED STATEMENT OF EARNINGS (LOSS) (UNAUDITED)
                      
                                           
 
Consolidated
    
GE(a)
      
Financial Services (GECC)
Three months ended September 30
2015
2014
  
V%
    
2015
2014
  
V%
  
2015
2014
  
V%
                                           
Revenues and other income
                                          
Sales of goods and services
$
25,527
$
25,890
  
 (1)%
    
$
25,612
$
26,025
  
 (2)%
  
$
21
$
28
  
(25)%
Other income
  
169
  
258
          
201
  
236
        
-
  
-
    
GECC earnings from continuing operations
  
-
  
-
          
734
  
843
        
-
  
-
    
GECC revenues from services
  
5,984
  
5,959
          
-
  
-
        
6,290
  
6,356
    
   Total revenues and other income
  
31,680
  
32,107
  
(1)%
      
26,547
  
27,104
  
(2)%
    
6,312
  
6,384
  
(1)%
Costs and expenses
                                          
Cost of sales
  
19,249
  
19,740
          
19,336
  
19,877
        
18
  
25
    
Interest and other financial charges
  
1,462
  
1,325
          
440
  
377
        
1,151
  
1,061
    
Investment contracts, insurance losses and
                                          
   insurance annuity benefits
  
676
  
662
          
-
  
-
        
717
  
700
    
Provision for losses on financing receivables
  
738
  
858
          
-
  
-
        
738
  
858
    
Other costs and expenses
  
6,298
  
6,318
          
3,549
  
3,686
        
2,918
  
2,857
    
   Total costs and expenses
  
28,423
  
28,903
  
 (2)%
      
23,325
  
23,940
  
(3)%
    
5,542
  
5,501
  
1%
Earnings from continuing operations
                                          
   before income taxes
  
3,257
  
3,204
  
2%
      
3,222
  
3,164
  
2%
    
769
  
883
  
(13)%
Benefit (provision) for income taxes
  
(365)
  
(401)
          
(413)
  
(416)
        
48
  
15
    
Earnings from continuing operations
  
2,892
  
2,803
  
 3 %
      
2,809
  
2,748
  
2%
    
817
  
898
  
(9)%
Earnings (loss) from discontinued
                                          
   operations, net of taxes
  
(347)
  
706
          
(347)
  
706
        
(347)
  
706
    
Net earnings
  
2,545
  
3,509
  
(27)%
      
2,462
  
3,454
  
(29)%
    
470
  
1,604
  
(71)%
Less net earnings (loss) attributable to
                                          
   noncontrolling interests
  
39
  
(28)
          
(43)
  
(83)
        
83
  
55
    
Net earnings attributable
                                          
   to the Company
  
2,506
  
3,537
  
(29)%
      
2,506
  
3,537
  
(29)%
    
387
  
1,549
  
(75)%
Preferred stock dividends declared
  
-
  
-
          
-
  
-
        
-
  
-
    
Net earnings attributable to
                                          
   GE common shareowners
$
2,506
$
3,537
  
(29)%
    
$
2,506
$
3,537
  
(29)%
  
$
387
$
1,549
  
(75)%
Amounts attributable to GE common
                                          
   shareowners:
                                          
   Earnings from continuing operations
$
2,892
$
2,803
  
 3 %
    
$
2,809
$
2,748
  
2%
  
$
817
$
898
  
(9)%
   Less net earnings (loss) attributable
                                          
     to noncontrolling interests
  
39
  
(28)
          
(43)
  
(83)
        
83
  
55
    
   Earnings from continuing operations
                                          
     attributable to the Company
  
2,853
  
2,831
  
 1 %
      
2,853
  
2,831
  
1%
    
734
  
843
  
(13)%
   GECC preferred stock dividends declared
  
-
  
-
          
-
  
-
        
-
  
-
    
   Earnings from continuing operations
                                          
     attributable to GE common shareowners
  
2,853
  
2,831
  
 1 %
      
2,853
  
2,831
  
1%
    
734
  
843
  
(13)%
   Earnings (loss) from discontinued
                                          
     operations, net of taxes
  
(347)
  
706
          
(347)
  
706
        
(347)
  
706
    
Net earnings attributable to GE
                                          
   common shareowners
$
2,506
$
3,537
  
(29)%
    
$
2,506
$
3,537
  
(29)%
  
$
387
$
1,549
  
(75)%
Per-share amounts - earnings from
                                          
   continuing operations
                                          
Diluted earnings per share
$
0.28
$
0.28
  
-%
                              
Basic earnings per share
$
0.28
$
0.28
  
-%
                              
Per-share amounts - net earnings
                                          
Diluted earnings per share
$
0.25
$
0.35
  
(29)%
                              
Basic earnings per share
$
0.25
$
0.35
  
(29)%
                              
Total average equivalent shares
                                          
Diluted earnings
  
10,173
  
10,119
  
1%
                              
Basic earnings
  
10,103
  
10,039
  
1%
                              
Dividends declared per common share
$
0.23
$
0.22
  
5%
                              
Amounts attributable to GE
                                          
   common shareowners:
                                          
Earnings from continuing operations
$
2,853
$
2,831
  
1%
                              
Adjustment (net of tax): non-operating
                                          
   pension costs
  
450
  
349
                                  
Operating earnings (non-GAAP measure)
$
3,303
$
3,180
  
4%
                              
Operating earnings - diluted
                                          
  earnings per share (non-GAAP measure)
$
0.32
$
0.31
  
3%
                              
(a) Refers to the Industrial businesses of the Company including GECC on an equity basis.


Amounts may not add due to rounding.

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 2014 consolidated financial statements at www.ge.com/ar2014 and our Form 8-K filed on August 7, 2015 for further information about consolidation matters.
GENERAL ELECTRIC COMPANY
CONDENSED STATEMENT OF EARNINGS (LOSS) (UNAUDITED)
 
 
Consolidated
    
GE(a)
  
Financial Services (GECC)
Nine months ended September 30
2015
2014
V%
    
2015
2014
  
V%
2015
2014
V%
                                           
Revenues and other income
                                          
Sales of goods and services
$
75,266
$
75,839
  
 (1)%
    
$
75,592
$
76,262
  
(1)%
  
$
64
$
89
  
(28)%
Other income
  
1,092
  
792
          
1,023
  
689
        
-
  
-
    
GECC earnings (loss) from continuing operations
  
-
  
-
          
(7,394)
  
3,252
        
-
  
-
    
GECC revenues from services
  
16,373
  
17,964
          
-
  
-
        
17,388
  
19,134
    
   Total revenues and other income
  
92,731
  
94,595
  
(2)%
      
69,221
  
80,203
  
(14)%
    
17,452
  
19,223
  
(9)%
       
-
              
-
            
-
    
Costs and expenses
                                          
Cost of sales
  
57,438
  
58,268
          
57,769
  
58,698
        
58
  
81
    
Interest and other financial charges
  
3,976
  
3,975
          
1,243
  
1,142
        
3,096
  
3,184
    
Investment contracts, insurance losses and
                                          
   insurance annuity benefits
  
1,952
  
1,940
          
-
  
-
        
2,070
  
2,041
    
Provision for losses on financing receivables
  
4,636
  
2,693
          
-
  
-
        
4,636
  
2,693
    
Other costs and expenses
  
19,125
  
18,744
          
11,035
  
11,355
        
8,555
  
8,005
    
   Total costs and expenses
  
87,127
  
85,620
  
2%
      
70,048
  
71,195
  
(2)%
    
18,415
  
16,004
  
15%
Earnings (loss) from continuing operations
                                          
    before income taxes
  
5,604
  
8,975
  
(38)%
      
(827)
  
9,008
  
U
    
(963)
  
3,219
  
U
Benefit (provision) for income taxes
  
(7,466)
  
(1,034)
          
(1,302)
  
(1,143)
        
(6,164)
  
109
    
Earnings (loss) from continuing operations
  
(1,862)
  
7,941
  
U
      
(2,129)
  
7,865
  
U
    
(7,127)
  
3,328
  
U
Earnings (loss) from discontinued
                                          
    operations, net of taxes
  
(10,336)
  
2,065
          
(10,336)
  
2,065
        
(10,332)
  
2,070
    
Net earnings (loss)
  
(12,198)
  
10,006
  
U
      
(12,465)
  
9,930
  
U
    
(17,459)
  
5,398
  
U
Less net earnings (loss) attributable to
                                          
    noncontrolling interests
  
229
  
(75)
          
(38)
  
(151)
        
267
  
76
    
Net earnings (loss) attributable to
                                          
   the Company
  
(12,427)
  
10,081
  
U
      
(12,427)
  
10,081
  
U
    
(17,726)
  
5,322
  
U
Preferred stock dividends declared
  
-
  
-
          
-
  
-
        
(161)
  
(161)
    
Net earnings (loss) attributable to
                                          
   GE common shareowners
$
(12,427)
$
10,081
  
U
    
$
(12,427)
$
10,081
  
U
  
$
(17,887)
$
5,161
  
U
Amounts attributable to GE common
                                          
   shareowners:
                                          
   Earnings (loss) from continuing operations
$
(1,862)
$
7,941
  
U
    
$
(2,129)
$
7,865
  
U
  
$
(7,127)
$
3,328
  
U
   Less net earnings (loss) attributable
                      
-
                  
     to noncontrolling interests
  
229
  
(75)
          
(38)
  
(151)
        
267
  
76
    
   Earnings (loss) from continuing operations
                                          
     attributable to the Company
  
(2,091)
  
8,016
  
U
      
(2,091)
  
8,016
  
U
    
(7,394)
  
3,252
  
U
   GECC preferred stock dividends declared
  
-
  
-
          
-
  
-
        
(161)
  
(161)
    
   Earnings (loss) from continuing operations
                                          
      attributable to GE common shareowners
  
(2,091)
  
8,016
  
U
      
(2,091)
  
8,016
  
U
    
(7,555)
  
3,091
  
U
   Earnings (loss) from discontinued
                                          
      operations, net of taxes
  
(10,336)
  
2,065
          
(10,336)
  
2,065
        
(10,332)
  
2,070
    
Net earnings (loss) attributable to GE
                                          
   common shareowners
$
(12,427)
$
10,081
  
U
    
$
(12,427)
$
10,081
  
U
  
$
(17,887)
$
5,161
  
U
                                         
Per-share amounts - earnings (loss) from
                                          
   continuing operations
                                          
Diluted earnings (loss) per share
$
(0.21)
$
0.79
  
U
                              
Basic earnings (loss) per share
$
(0.21)
$
0.80
  
U
                              
Per-share amounts - net earnings (loss)
                                          
Diluted earnings (loss) per share
$
(1.23)
$
0.99
  
U
                              
Basic earnings (loss) per share
$
(1.23)
$
1.00
  
U
                              
Total average equivalent shares
                                          
Diluted earnings
  
10,085
  
10,121
  
 - %
                              
Basic earnings
  
10,085
  
10,042
  
 - %
                              
Dividends declared per common share
$
0.69
$
0.66
  
5%
                              
                                           
Amounts attributable to GE
                                          
   common shareowners:
                                          
Earnings (loss) from continuing operations
$
(2,091)
$
8,016
  
U
                              
Adjustment (net of tax): non-operating
                                          
   pension costs
  
1,350
  
1,035
                                  
Operating earnings (loss) (non-GAAP measure)
$
(741)
$
9,051
  
U
                              
Operating earnings (loss) - diluted
                                          
   earnings (loss) per share (non-GAAP measure)
$
(0.07)
$
0.89
  
U
                              
(a) Refers to the Industrial businesses of the Company including GECC on an equity basis.


Amounts may not add due to rounding.


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 2014 consolidated financial statements at www.ge.com/ar2014 and our Form 8-K filed on August 7, 2015 for further information about consolidation matters.

GENERAL ELECTRIC COMPANY
                              
SUMMARY OF OPERATING SEGMENTS (UNAUDITED)
                    
                               
 
Three months ended September 30
  
Nine months ended September 30
(Dollars in millions)
2015
  
2014
  
V%
  
2015
  
2014
  
V%
                               
Revenues(a)
                              
   Power & Water
$
6,461
  
$
6,375
  
 1 %
  
$
18,978
  
$
18,176
  
 4 %
   Oil & Gas
  
3,868
    
4,597
  
 (16)%
    
11,891
    
13,666
  
 (13)%
   Energy Management
  
1,773
    
1,813
  
 (2)%
    
5,226
    
5,341
  
 (2)%
   Aviation
  
6,001
    
5,698
  
 5 %
    
17,927
    
17,566
  
 2 %
   Healthcare
  
4,255
    
4,485
  
 (5)%
    
12,666
    
13,166
  
 (4)%
   Transportation
  
1,593
    
1,540
  
 3 %
    
4,322
    
4,073
  
 6 %
   Appliances & Lighting
  
2,293
    
2,117
  
 8 %
    
6,469
    
6,094
  
 6 %
   Total industrial segment revenues
  
26,243
    
26,625
  
 (1)%
    
77,479
    
78,082
  
 (1)%
   GE Capital
  
6,312
    
6,384
  
 (1)%
    
17,452
    
19,223
  
 (9)%
   Total segment revenues
  
32,555
    
33,009
  
 (1)%
    
94,931
    
97,305
  
 (2)%
   Corporate items and eliminations(a)
  
(875)
    
(902)
  
 (3)%
    
(2,201)
    
(2,710)
  
 (19)%
Consolidated revenues and other income
                              
  from continuing operations
$
31,680
  
$
32,107
  
 (1)%
  
$
92,731
  
$
94,595
  
 (2)%
                               
Segment profit (loss)(a)
                              
   Power & Water
$
1,270
  
$
1,191
  
 7 %
  
$
3,362
  
$
3,212
  
 5 %
   Oil & Gas
  
584
    
660
  
 (12)%
    
1,599
    
1,771
  
 (10)%
   Energy Management
  
127
    
59
  
F
    
237
    
133
  
 78 %
   Aviation
  
1,353
    
1,264
  
 7 %
    
3,936
    
3,576
  
 10 %
   Healthcare
  
652
    
727
  
 (10)%
    
1,944
    
2,027
  
 (4)%
   Transportation
  
379
    
342
  
 11 %
    
934
    
814
  
 15 %
   Appliances & Lighting
  
165
    
88
  
 88 %
    
432
    
243
  
 78 %
   Total industrial segment profit
  
4,530
    
4,331
  
 5 %
    
12,445
    
11,776
  
 6 %
   GE Capital
  
734
    
843
  
 (13)%
    
(7,555)
    
3,091
  
U
   Total segment profit (loss)
  
5,264
    
5,174
  
 2 %
    
4,890
    
14,867
  
 (67)%
Corporate items and eliminations(a)
  
(1,559)
    
(1,550)
  
 1 %
    
(4,436)
    
(4,566)
  
 (3)%
GE interest and other financial charges
  
(440)
    
(377)
  
 17 %
    
(1,243)
    
(1,142)
  
 9 %
GE provision for income taxes
  
(413)
    
(416)
  
 (1)%
    
(1,302)
    
(1,143)
  
 14 %
Earnings (loss) from continuing operations
                              
   attributable to the Company
  
2,853
    
2,831
  
 1 %
    
(2,091)
    
8,016
  
U
Earnings (loss) from discontinued operations,
                              
   net of taxes
  
(347)
    
706
  
U
    
(10,336)
    
2,065
  
U
Consolidated net earnings (loss)
                              
   attributable to the Company
$
2,506
  
$
3,537
  
 (29)%
  
$
(12,427)
  
$
10,081
  
U
                               
(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. Total industrial segment revenues and profit include the sum of our seven industrial reporting segments without giving effect to the elimination of transactions among such segments. Total segment revenues and profit include the sum of our seven industrial segments and one financial services segment, without giving effect to the elimination of transactions among such segments.  We believe that this provides investors with a view as to the results of all of our segments, without inter-segment eliminations and corporate items.

Amounts may not add due to rounding

GENERAL ELECTRIC COMPANY
SUMMARY OF OPERATING SEGMENTS
ADDITIONAL INFORMATION (UNAUDITED)
                               
 
Three months ended September 30
  
Nine months ended September 30
(Dollars in millions)
2015
  
2014
  
V%
  
2015
  
2014
  
V%
                               
GE Capital
                              
                               
Revenues
                              
Commercial Lending and Leasing (CLL)
$
285
  
$
251
  
 14 %
  
$
790
  
$
743
  
 6 %
Consumer
  
3,652
    
3,622
  
 1 %
    
9,237
    
10,822
  
 (15)%
Energy Financial Services
  
225
    
344
  
 (35)%
    
906
    
1,120
  
 (19)%
GE Capital Aviation Services (GECAS)
  
1,307
    
1,262
  
 4 %
    
3,935
    
3,952
  
 - %
   
5,468
    
5,479
  
 -   %
    
14,867
    
16,637
  
 (11)%
GECC corporate items and eliminations
  
843
    
905
  
 (7)%
    
2,585
    
2,586
  
 - %
Total revenues
$
6,312
  
$
6,384
  
 (1)%
  
$
17,452
  
$
19,223
  
 (9)%
                               
Segment profit (loss)
                              
CLL
$
111
  
$
90
  
 23 %
  
$
286
  
$
252
  
 13 %
Consumer
  
795
    
621
  
 28 %
    
(1,521)
    
1,879
  
U
Energy Financial Services
  
(38)
    
61
  
U
    
106
    
290
  
 (63)%
GECAS
  
313
    
133
  
F
    
981
    
828
  
 18 %
   
1,180
    
905
  
 30 %
    
(149)
    
3,249
  
U
GECC corporate items and eliminations
  
(445)
    
(62)
  
U
    
(7,245)
    
3
  
U
Preferred stock dividends declared
  
-
    
-
  
 - %
    
(161)
    
(161)
  
 - %
Total segment profit (loss)
$
734
  
$
843
  
 (13)%
  
$
(7,555)
  
$
3,091
  
U
                               
Amounts may not add due to rounding


GENERAL ELECTRIC COMPANY
                                    
CONDENSED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
 
                                     
 
Consolidated
    
GE(a)
  
Financial Services (GECC)
 
September 30,
  
December 31,
    
September 30,
  
December 31,
  
September 30,
  
December 31,
(Dollars in billions)
2015
  
2014
    
2015
  
2014
  
2015
  
2014
                         
Assets
                                    
Cash & marketable securities
$
136.0
  
$
123.3
    
$
16.9
  
$
16.0
  
$
119.1
  
$
107.3
Receivables
  
22.3
    
23.2
      
10.8
    
11.5
    
-
    
-
Inventories
  
19.3
    
17.7
      
19.2
    
17.6
    
0.1
    
0.1
GECC financing receivables - net
  
72.4
    
110.3
      
-
    
-
    
83.7
    
122.5
Property, plant & equipment - net
  
50.7
    
48.3
      
16.7
    
17.2
    
34.5
    
31.5
Investment in GECC
  
-
    
-
      
63.2
    
82.5
    
-
    
-
Goodwill & intangible assets
  
75.3
    
76.8
      
62.6
    
64.5
    
12.6
    
12.3
Other assets
  
52.2
    
60.2
      
33.3
    
33.5
    
26.7
    
34.3
Financing receivables held for sale
  
22.8
    
0.4
      
-
    
-
    
23.7
    
0.8
Assets of businesses held for sale
  
8.3
    
6.3
      
3.4
    
2.8
    
4.9
    
3.5
Assets of discontinued operations
  
121.9
    
186.9
      
-
    
-
    
121.9
    
186.9
Total assets
$
581.3
  
$
653.5
    
$
226.1
  
$
245.7
  
$
427.4
  
$
499.2
                                     
Liabilities and equity
                                    
Borrowings and bank deposits
$
275.2
  
$
313.7
    
$
20.7
  
$
16.3
  
$
255.7
  
$
298.3
Investment contracts, insurance liabilities and
                                    
   insurance annuity benefits
  
26.1
    
27.6
      
-
    
-
    
26.6
    
28.0
Other liabilities
  
114.9
    
123.2
      
91.7
    
98.7
    
29.8
    
31.3
Liabilities of businesses held for sale
  
1.4
    
3.4
      
1.8
    
1.5
    
0.3
    
2.4
Liabilities of discontinued operations
  
43.8
    
48.8
      
0.1
    
0.1
    
43.6
    
48.7
GE Shareowners' equity
  
111.2
    
128.2
      
111.2
    
128.2
    
68.2
    
87.5
Noncontrolling interests
  
8.8
    
8.7
      
0.7
    
0.8
    
3.2
    
2.9
Total liabilities and equity
$
581.3
  
$
653.5
    
$
226.1
  
$
245.7
  
$
427.4
  
$
499.2
                                     
(a) Refers to the Industrial businesses of the Company including GECC on an equity basis.


Amounts may not add due to rounding

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 2014 consolidated financial statements at www.ge.com/ar2014 and our Form 8-K filed on August 7, 2015 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:

·
Industrial operating earnings and EPS and GE Capital operating earnings (loss) and EPS
·
GE Industrial operating + Verticals EPS
·
GE Industrial + Verticals revenues
·
Industrial segment organic revenue growth
·
Industrial segment organic operating profit growth
·
Oil & Gas organic operating profit growth
·
Industrial cash flows from operating activities (Industrial CFOA)
·
GE Capital ending net investment (ENI), excluding liquidity
·
GECC Tier 1 common ratio estimate

The reconciliations of these measures to the most comparable GAAP measures follow. Effective September 30, 2015, certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in millions.


 
INDUSTRIAL OPERATING EARNINGS AND EPS AND GE CAPITAL OPERATING EARNINGS (LOSS) AND EPS
    
                               
   
Three months ended September 30
    
Nine months ended September 30
(Dollars in millions; except per share amounts)
  
2015
    
2014
  
V%
    
2015
    
2014
  
V%
                               
Earnings (loss) from continuing operations attributable to GE
$
2,853
  
$
2,831
      
$
(2,091)
  
$
8,016
    
Adjustment (net of tax): non-operating pension costs
  
450
    
349
        
1,350
    
1,035
    
Operating earnings (loss)
  
3,303
    
3,180
  
4%
    
(741)
    
9,051
  
U
                               
Less GECC earnings (loss) from continuing operations
                              
   attributable to GE common shareowners
  
734
    
843
        
(7,555)
    
3,091
    
Operating earnings excluding GECC earnings from continuing
                              
   operations attributable to GE
                              
     (Industrial operating earnings)
$
2,569
  
$
2,337
  
10%
  
$
6,814
  
$
5,960
  
14%
Operating earnings (loss) less Industrial operating
                              
   earnings (GE Capital operating earnings (loss))
  
734
    
843
  
(13)%
    
(7,555)
    
3,091
  
U
Operating earnings (loss)
  
3,303
    
3,180
  
4%
    
(741)
    
9,051
  
U
   
                              
Earnings (loss) per share - diluted(a)
                              
Operating earnings per share attributable
                              
   to Industrial (Industrial operating EPS)
$
0.25
  
$
0.23
  
9%
  
$
0.68
  
$
0.59
  
15%
Operating earnings (loss) per share  attributable
                              
   to GE Capital (GE Capital operating EPS)
  
0.07
    
0.08
  
(13)%
    
(0.75)
    
0.31
  
U
Total operating earnings (loss) per share
$
0.32
  
$
0.31
  
3%
  
$
(0.07)
  
$
0.89
  
U
                               
(a)
Earnings (loss)-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.

Operating earnings (loss) 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 (loss) 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 and operating EPS 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.
 
GE INDUSTRIAL OPERATING + VERTICALS EPS
    
                               
   
Three months ended September 30
    
Nine months ended September 30
(Dollars in millions; except per share amounts)
  
2015
    
2014
  
V%
    
2015
    
2014
  
V%
                               
GE Capital operating earnings (loss)
$
734
  
$
843
  
(13)%
    
(7,555)
    
3,091
  
U
Less: Verticals earnings(a)
  
351
    
226
        
1,228
    
1,199
    
GE Capital operating earnings less Verticals earnings(b)
$
384
  
$
617
  
(38)%
    
(8,783)
    
1,892
  
U
                               
Industrial operating earnings
$
2,569
  
$
2,337
  
10%
  
$
6,814
  
$
5,960
  
14%
Verticals earnings(a)
  
351
    
226
        
1,228
    
1,199
    
Industrial operating earnings + Verticals earnings
$
2,920
  
$
2,563
  
14%
    
8,042
    
7,159
  
12%
                               
Earnings (loss) per share - diluted(c)
                              
Industrial operating earnings-per-share
$
0.25
  
$
0.23
  
9%
  
$
0.68
  
$
0.59
  
15%
Verticals earnings-per-share
  
0.03
    
0.02
  
50%
    
0.12
    
0.12
  
-%
Industrial operating + Verticals earnings-per-share
$
0.29
  
$
0.25
  
16%
  
$
0.80
  
$
0.71
  
13%
                               
(a)
Verticals include businesses expected to be retained (GECAS, EFS, Healthcare Equipment Finance, Working Capital Solutions, and run-off Insurance), including allocated corporate costs of $25 million and $58 million after tax in the three months ended September 30, 2015 and 2014, respectively.
(b)
Includes $795 million and $621 million of Consumer after-tax operating earnings for the three months ended September 30, 2015 and 2014, respectively.
(c)
Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.

As described above, Verticals represents the GECC businesses that we expect to retain.  We believe that presenting Industrial operating + Vertical earnings-per-share amounts provides management and investors with a useful measure to evaluate the performance of the businesses we expect to retain after the disposition of most of our financial services business.
 
GE INDUSTRIAL + VERTICALS REVENUES
                 
   
Three months ended September 30
  
(Dollars in millions)
  
2015
    
2014
  
V%
  
                 
GE Capital revenues
$
6,312
  
$
6,384
  
(1)%
  
Less: Verticals revenues(a)
  
2,577
    
2,655
  
(3)%
  
GE Capital revenues less Verticals revenues
$
3,735
  
$
3,729
  
-%
  
                 
Industrial segment revenues
$
26,243
  
$
26,625
  
(1)%
  
Verticals revenues(a)
  
2,577
    
2,655
  
(3)%
  
Corporate items and eliminations
  
(875)
    
(902)
  
(3)%
  
GE Industrial + Verticals revenues
$
27,945
  
$
28,378
  
(2)%
  
Less the effects of:
                
   Acquisitions, business dispositions (other than
                
      dispositions of businesses acquired for investment)
                
          and currency exchange rates
  
(932)
    
111
      
GE Industrial + Verticals revenues excluding effects of acquisitions,
                
   business dispositions (other than dispositions of
                
      businesses acquired for investment) and currency
                
         exchange rates (GE Industrial + Verticals revenues)
$
28,877
  
$
28,267
  
2%
  
                 
(a)
Verticals include businesses expected to be retained (GECAS, EFS, Healthcare Equipment Finance, Working Capital Solutions, and run-off Insurance).

As described above, Verticals represents the GECC businesses that we expect to retain.  We believe that presenting Industrial + Verticals revenues amounts provides management and investors with a useful measure to evaluate the performance of the businesses we expect to retain after the disposition of most of our financial services business.


INDUSTRIAL SEGMENT ORGANIC REVENUE GROWTH
                               
 
Three months ended September 30
  
Nine months ended September 30
(Dollars in millions)
  
2015
    
2014
  
V%
    
2015
    
2014
  
V%
                               
Segment revenues:
                              
    Power & Water
$
6,461
  
$
6,375
      
$
18,978
  
$
18,176
    
    Oil & Gas
  
3,868
    
4,597
        
11,891
    
13,666
    
    Energy Management
  
1,773
    
1,813
        
5,226
    
5,341
    
    Aviation
  
6,001
    
5,698
        
17,927
    
17,566
    
    Healthcare
  
4,255
    
4,485
        
12,666
    
13,166
    
    Transportation
  
1,593
    
1,540
        
4,322
    
4,073
    
    Appliances & Lighting
  
2,293
    
2,117
        
6,469
    
6,094
    
Industrial segment revenues
  
26,243
    
26,625
  
 (1)%
    
77,479
    
78,082
  
 (1)%
Less the effects of:
                              
   Acquisitions, business dispositions (other than
                              
      dispositions of businesses acquired for investment)
                              
          and currency exchange rates
  
(1,238)
    
76
        
(3,217)
    
563
    
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)
$
27,481
  
$
26,549
  
4%
  
$
80,696
  
$
77,519
  
4%
                               

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.
INDUSTRIAL SEGMENT ORGANIC OPERATING PROFIT GROWTH
                               
 
Three months ended September 30
  
Nine months ended September 30
(Dollars in millions)
  
2015
    
2014
  
V%
    
2015
    
2014
  
V%
                               
Industrial segment profit
$
4,530
  
$
4,331
  
5%
  
$
12,445
  
$
11,776
  
6%
Less the effects of:
                              
   Acquisitions, business dispositions (other than
                              
      dispositions of businesses acquired for
                              
         investment) and currency exchange rates
  
(168)
    
29
        
(483)
    
89
    
Industrial segment profit excluding effects of acquisitions,
                              
   business dispositions (other than dispositions of
                              
      businesses acquired for investment) and currency
                              
         exchange rates (Industrial segment organic operating profit)
$
4,698
  
$
4,302
  
9%
  
$
12,928
  
$
11,687
  
11%
                               

Operating profit growth measures profit 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. Management recognizes that the term "organic operating 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 respective businesses or companies and may therefore be a useful tool in assessing period-to-period performance trends.

OIL & GAS ORGANIC OPERATING PROFIT GROWTH
                 
 
Three months ended September 30
(Dollars in millions)
  
2015
    
2014
  
V%
  
                 
Oil & Gas segment profit
$
584
  
$
660
  
(12)%
  
Less the effects of:
                
     Acquisitions, business dispositions (other than
                
     dispositions of businesses acquired for investment)
                
     and currency exchange rates
  
(75)
    
2
      
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 operating profit)
$
659
  
$
658
  
-%
  
                 

INDUSTRIAL CASH FLOWS FROM OPERATING ACTIVITIES (INDUSTRIAL CFOA)
 
  
                 
 
Nine months ended September 30
  
(Dollars in millions)
  
2015
    
2014
  
V%
  
                 
Cash from GE's operating activities (continuing operations), as reported
$
6,526
  
$
7,175
  
(9)%
  
Less dividends from GECC
  
450
    
2,221
      
Cash from GE's operating activities (continuing operations),
                
   excluding dividends from GECC (Industrial CFOA)
$
6,076
  
$
4,954
  
23%
  
                 

We define "Industrial CFOA" as GE's cash from operating activities (continuing operations) 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 leased by GE from 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. Management recognizes that this measure may not be comparable to cash flow results of companies which 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 GECC cash flows. We believe that our measure of Industrial CFOA provides management and investors with a useful measure to compare the capacity of our industrial operations to generate operating cash flow with the operating cash flow of other non-financial businesses and companies and as such provides a useful measure to supplement the reported GAAP CFOA measure.

GE CAPITAL ENDING NET INVESTMENT (ENI), EXCLUDING LIQUIDITY
     
(Dollars in billions)
September 30, 2015
  
September 30, 2014(b)
           
Financial Services (GECC) total assets
$
427.4
  
$
506.9
Adjustment deferred Income taxes
  
6.4
    
-
GECC total assets
  
433.8
    
506.9
   Less assets of discontinued operations
  
121.9
    
1.3
   Less non-interest bearing liabilities
  
50.3
    
60.9
GE Capital ENI
  
261.6
    
444.7
   Less liquidity(a)
  
85.5
    
79.9
GE Capital ENI, excluding liquidity
$
176.1
  
$
364.8
   Discontinued operations, excluding liquidity
  
94.5
      
GECC ENI, excluding  liquidity
$
270.6
      
           
GE Capital ENI percentage variance to September 30, 2014
  
(52)%
      
           
(a)
Liquidity includes cash and equivalents and $3.2 billion of debt obligations of the U.S. Treasury at September 30, 2015.
(b)
As originally reported.

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.



GECC TIER 1 COMMON RATIO ESTIMATE(a)
       
(Dollars in billions)
September 30, 2015
           
Shareowners' equity(b)
      
$
68.2
Adjustments:
          
   Preferred equity
        
(4.9)
   Goodwill and other intangible assets
        
(15.5)
   Other additions (deductions)
        
1.1
GECC Tier 1 common
        
48.9
Estimated risk-weighted assets(c)
        
356.7
GECC Tier 1 common ratio estimate
        
13.7%
           
(a)
Includes discontinued operations.
(b)
Total equity excluding noncontrolling interests.
(c)
Based on Basel 3 risk-weighted assets estimates.

The GECC Tier 1 common ratio estimate is the ratio of Tier 1 common equity to total risk-weighted assets as calculated based on our interpretation of the standardized U.S. Basel 3 capital rules on a transitional basis, which is  subject to review and consultation with our regulators. As such, the methodology of calculating this ratio may be refined over time as we discuss its interpretation and application with our regulators. We are not required by our regulators to disclose this estimated capital ratio, and therefore this capital ratio is considered a non-GAAP financial measure. We believe that this capital ratio is a useful measure to investors because it is widely used by analysts and regulators to assess the capital position of financial services companies.

GENERAL ELECTRIC CO Reports