Attached files
| file | filename |
|---|---|
| 8-K - GENERAL ELECTRIC CO | ge8k03222017.htm |
Exhibit 99
Industrial Operating Profit
Industrial operating profit is before tax and interest charges and excludes non-operating pension costs, restructuring and other charges, and gains.
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(in millions)
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2016
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||
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Revenues
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|||
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GE total revenues and other income
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$
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113,676
|
|
|
Less: GE Capital earnings (loss) from continuing operations
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(1,251)
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||
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GE revenues and other income excluding GE Capital earnings (loss) (Industrial revenues) (GAAP)
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$
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114,927
|
|
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Less: gains on disposals
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3,444
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||
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Adjusted Industrial revenues (Non-GAAP)
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$
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111,483
|
|
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Costs
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|||
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GE total costs and expenses
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$
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103,860
|
|
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Less: GE interest and other financial charges
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2,026
|
||
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Industrial costs excluding interest and other financial charges (GAAP)
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$
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101,834
|
|
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Less: non-operating pension costs
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2,052
|
||
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Less: restructuring and other charges
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3,578
|
||
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Less: noncontrolling interests
|
279
|
||
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Adjusted Industrial costs (Non-GAAP)
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$
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95,925
|
|
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Industrial profit (GAAP)
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$
|
13,093
|
|
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Industrial operating profit (Non-GAAP)
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$
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15,558
|
|
We have presented our Industrial operating profit excluding gains, non-operating pension costs, restructuring and other charges, and noncontrolling interests. We believe that Industrial operating profit adjusted for these items is a meaningful measure because it increases the comparability of period-to-period results.
Industrial Structural Costs
Industrial structural costs include segment structural costs excluding the impact of business acquisitions and dispositions, plus total Corporate operating profit excluding non-operating pension costs, restructuring and other charges and gains. To establish a consistent baseline, the 2016 amount excluded Appliances (which the Company sold in the second quarter of 2016), and the 2017 amount will exclude significant transactions such as Baker Hughes, LM Wind Power, and additive manufacturing (Arcam & Concept Laser).
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(in millions)
|
2016
|
|
|
GE total costs and expenses
|
$
|
103,860
|
|
Less: GE interest and other financial charges
|
2,026
|
|
|
Industrial costs excluding interest and other financial charges (GAAP)
|
$
|
101,834
|
|
Adjustments:
|
||
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Less: segment variable costs
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72,593
|
|
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Less: Corporate revenue excluding GE-GECC elimination and gains on disposals
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(1,673)
|
|
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Less: Corporate restructuring and other charges
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3,578
|
|
|
Less: Corporate non-operating pension costs
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2,052
|
|
|
Less: Corporate noncontrolling interests
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(7)
|
|
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Industrial structural costs (Non-GAAP)
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$
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25,291
|
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Less: acquistions and dispositions structural costs
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387
|
|
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Industrial structural costs excluding acquistions and dispositions (Non-GAAP)
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$
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24,904
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We believe that Industrial structural costs are a meaningful measure as they are broader than selling, general and administrative costs and represent the total structural costs in the Industrial segments and Corporate that generally do not vary with volume.