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8-K - 8-K - GENERAL ELECTRIC CO | a8-kbodyandnarrative.htm |
Exhibit 99
STATEMENT OF EARNINGS (LOSS) | ||||||||||||||
(UNAUDITED) | General Electric Company and consolidated affiliates | |||||||||||||
For the year ended December 31 (In millions; per-share amounts in dollars) | Reported 2017 | ASC 606 | Other Changes | Restated 2017 | ||||||||||
Revenues | ||||||||||||||
Sales of goods and services | $ | 113,192 | $ | (2,224 | ) | (a) | $ | — | $ | 110,968 | ||||
Other income | 1,625 | — | (1,625 | ) | — | |||||||||
GE Capital revenues from services | 7,276 | — | — | 7,276 | ||||||||||
Total revenues | 122,092 | (2,224 | ) | (1,625 | ) | (b) | 118,243 | |||||||
Costs and expenses | ||||||||||||||
Cost of sales | 91,934 | 464 | (a) | (1,515 | ) | (c) | 90,883 | |||||||
Selling, general and administrative expenses | 18,280 | (1 | ) | (710 | ) | (d) | 17,569 | |||||||
Interest and other financial charges | 4,869 | — | — | 4,869 | ||||||||||
Investment contracts, insurance losses and insurance annuity benefits | 12,168 | — | — | 12,168 | ||||||||||
Non-operating benefit costs | — | — | 2,399 | 2,399 | ||||||||||
Other costs and expenses | 3,632 | — | — | 3,632 | ||||||||||
Total costs and expenses | 130,883 | 462 | 175 | 131,520 | ||||||||||
Other income | — | 414 | 1,712 | (b) | 2,126 | |||||||||
GE Capital earnings (loss) from continuing operations | — | — | — | — | ||||||||||
Earnings (loss) from continuing operations before income taxes | (8,791 | ) | (2,273 | ) | (87 | ) | (11,151 | ) | ||||||
Benefit (provision) for income taxes | 3,043 | (395 | ) | (e) | (37 | ) | (e) | 2,611 | ||||||
Earnings (loss) from continuing operations | (5,748 | ) | (2,668 | ) | (124 | ) | (8,540 | ) | ||||||
Earnings (loss) from discontinued operations, net of taxes | (309 | ) | — | — | (309 | ) | ||||||||
Net earnings (loss) | (6,056 | ) | (2,668 | ) | (124 | ) | (8,849 | ) | ||||||
Less net earnings (loss) attributable to noncontrolling interests | (270 | ) | (96 | ) | 2 | (365 | ) | |||||||
Net earnings (loss) attributable to the Company | (5,786 | ) | (2,572 | ) | (126 | ) | (8,484 | ) | ||||||
Preferred stock dividends | (436 | ) | — | — | (436 | ) | ||||||||
Net earnings (loss) attributable to GE common shareowners | $ | (6,222 | ) | $ | (2,572 | ) | $ | (126 | ) | $ | (8,920 | ) | ||
Amounts attributable to GE common shareowners | ||||||||||||||
Earnings (loss) from continuing operations | $ | (5,748 | ) | $ | (2,668 | ) | $ | (124 | ) | $ | (8,540 | ) | ||
Less net earnings (loss) attributable to noncontrolling interests, | ||||||||||||||
continuing operations | (277 | ) | (96 | ) | 2 | (371 | ) | |||||||
Earnings (loss) from continuing operations attributable to the Company | (5,471 | ) | (2,572 | ) | (126 | ) | (8,169 | ) | ||||||
Preferred stock dividends | (436 | ) | — | — | (436 | ) | ||||||||
Earnings (loss) from continuing operations attributable | ||||||||||||||
to GE common shareowners | (5,907 | ) | (2,572 | ) | (126 | ) | (8,605 | ) | ||||||
Earnings (loss) from discontinued operations, net of taxes | (309 | ) | — | — | (309 | ) | ||||||||
Less net earnings (loss) attributable to | ||||||||||||||
noncontrolling interests, discontinued operations | 6 | — | — | 6 | ||||||||||
Net earnings (loss) attributable to GE common shareowners | $ | (6,222 | ) | $ | (2,572 | ) | $ | (126 | ) | $ | (8,920 | ) | ||
Per-share amounts | ||||||||||||||
Earnings (loss) from continuing operations | ||||||||||||||
Diluted earnings (loss) per share | $ | (0.68 | ) | $ | (0.30 | ) | (f) | $ | (0.01 | ) | (f) | $ | (0.99 | ) |
Basic earnings (loss) per share | $ | (0.68 | ) | $ | (0.30 | ) | (f) | $ | (0.01 | ) | (f) | $ | (0.99 | ) |
Net earnings (loss) | ||||||||||||||
Diluted earnings (loss) per share | $ | (0.72 | ) | $ | (0.30 | ) | (f) | $ | (0.01 | ) | (f) | $ | (1.03 | ) |
Basic earnings (loss) per share | $ | (0.72 | ) | $ | (0.30 | ) | (f) | $ | (0.01 | ) | (f) | $ | (1.03 | ) |
Dividends declared per common share | $ | 0.84 | $ | 0.00 | $ | 0.00 | $ | 0.84 |
(a) | Refer to Summary of Operating Segments for information by segment. |
(b) | In addition to reclassifying Other income out of total revenues, Other Changes to Other income includes an adjustment of $87 million to our pre-tax gains on sales of business interests and our valuation allowance on businesses classified as held for sale as a result of our change in inventory cost methodology. |
(c) | Other Changes includes adjustments of $(1,712) million and $175 million related to ASU 2017-07 (pension and other benefit costs) and our change in inventory cost methodology, respectively. |
(d) | Other Changes includes an adjustment of $(687) million related to ASU 2017-07 (pension and other benefit costs). |
(e) | ASC 606 and Other Changes include adjustments of $(1,110) million and $(78) million, respectively, related to U.S. tax reform. |
(f) | ASC 606 and Other Changes include impacts of $(0.13) per share and $(0.01) per share, respectively, related to U.S. tax reform. |
Amounts may not add due to rounding.
1
STATEMENT OF EARNINGS (LOSS) | ||||||||||||||
(UNAUDITED) | General Electric Company and consolidated affiliates | |||||||||||||
For the three months ended March 31 (In millions; per-share amounts in dollars) | Reported 2017 | ASC 606 | Other Changes | Restated 2017 | ||||||||||
Revenues | ||||||||||||||
Sales of goods and services | $ | 25,228 | $ | (611 | ) | (a) | $ | — | $ | 24,616 | ||||
Other income | 168 | — | (168 | ) | — | |||||||||
GE Capital revenues from services | 2,264 | — | — | 2,264 | ||||||||||
Total revenues | 27,660 | (611 | ) | (168 | ) | 26,881 | ||||||||
Costs and expenses | ||||||||||||||
Cost of sales | 20,359 | 281 | (a) | (409 | ) | (b) | 20,231 | |||||||
Selling, general and administrative expenses | 4,506 | (1 | ) | (219 | ) | (c) | 4,287 | |||||||
Interest and other financial charges | 1,139 | — | — | 1,139 | ||||||||||
Investment contracts, insurance losses and insurance annuity benefits | 634 | — | — | 634 | ||||||||||
Non-operating benefit costs | — | — | 651 | 651 | ||||||||||
Other costs and expenses | 190 | — | — | 190 | ||||||||||
Total costs and expenses | 26,829 | 280 | 23 | 27,132 | ||||||||||
Other income | — | 30 | 168 | 197 | ||||||||||
GE Capital earnings (loss) from continuing operations | — | — | — | — | ||||||||||
Earnings (loss) from continuing operations before income taxes | 832 | (862 | ) | (22 | ) | (53 | ) | |||||||
Benefit (provision) for income taxes | (16 | ) | 113 | 8 | 105 | |||||||||
Earnings (loss) from continuing operations | 816 | (749 | ) | (15 | ) | 52 | ||||||||
Earnings (loss) from discontinued operations, net of taxes | (239 | ) | — | — | (239 | ) | ||||||||
Net earnings (loss) | 577 | (749 | ) | (15 | ) | (187 | ) | |||||||
Less net earnings (loss) attributable to noncontrolling interests | (76 | ) | (28 | ) | — | (104 | ) | |||||||
Net earnings (loss) attributable to the Company | 653 | (721 | ) | (15 | ) | (83 | ) | |||||||
Preferred stock dividends | (34 | ) | — | — | (34 | ) | ||||||||
Net earnings (loss) attributable to GE common shareowners | $ | 619 | $ | (721 | ) | $ | (15 | ) | $ | (117 | ) | |||
Amounts attributable to GE common shareowners | ||||||||||||||
Earnings (loss) from continuing operations | $ | 816 | $ | (749 | ) | $ | (15 | ) | $ | 52 | ||||
Less net earnings (loss) attributable to noncontrolling interests, | ||||||||||||||
continuing operations | (76 | ) | (28 | ) | — | (104 | ) | |||||||
Earnings (loss) from continuing operations attributable to the Company | 892 | (721 | ) | (15 | ) | 156 | ||||||||
Preferred stock dividends | (34 | ) | — | — | (34 | ) | ||||||||
Earnings (loss) from continuing operations attributable | ||||||||||||||
to GE common shareowners | 858 | (721 | ) | (15 | ) | 122 | ||||||||
Earnings (loss) from discontinued operations, net of taxes | (239 | ) | — | — | (239 | ) | ||||||||
Less net earnings (loss) attributable to | ||||||||||||||
noncontrolling interests, discontinued operations | — | — | — | — | ||||||||||
Net earnings (loss) attributable to GE common shareowners | $ | 619 | $ | (721 | ) | $ | (15 | ) | $ | (117 | ) | |||
Per-share amounts | ||||||||||||||
Earnings (loss) from continuing operations | ||||||||||||||
Diluted earnings (loss) per share | $ | 0.10 | $ | (0.08 | ) | $ | 0.00 | $ | 0.01 | |||||
Basic earnings (loss) per share | $ | 0.10 | $ | (0.08 | ) | $ | 0.00 | $ | 0.01 | |||||
Net earnings (loss) | ||||||||||||||
Diluted earnings (loss) per share | $ | 0.07 | $ | (0.08 | ) | $ | 0.00 | $ | (0.01 | ) | ||||
Basic earnings (loss) per share | $ | 0.07 | $ | (0.08 | ) | $ | 0.00 | $ | (0.01 | ) | ||||
Dividends declared per common share | $ | 0.24 | $ | 0.00 | $ | 0.00 | $ | 0.24 |
(a) | Refer to Summary of Operating Segments for information by segment. |
(b) | Other Changes includes adjustments of $(442) million and $22 million related to ASU 2017-07 (pension and other benefit costs) and our change in inventory cost methodology, respectively. |
(c) | Other Changes includes an adjustment of $(209) million related to ASU 2017-07 (pension and other benefit costs). |
Amounts may not add due to rounding.
2
STATEMENT OF EARNINGS (LOSS) | ||||||||||||||
(UNAUDITED) | General Electric Company and consolidated affiliates | |||||||||||||
For the three months ended June 30 (In millions; per-share amounts in dollars) | Reported 2017 | ASC 606 | Other Changes | Restated 2017 | ||||||||||
Revenues | ||||||||||||||
Sales of goods and services | $ | 27,239 | $ | (164 | ) | (a) | $ | — | $ | 27,075 | ||||
Other income | 298 | — | (298 | ) | — | |||||||||
GE Capital revenues from services | 2,022 | — | — | 2,022 | ||||||||||
Total revenues | 29,558 | (164 | ) | (298 | ) | 29,097 | ||||||||
Costs and expenses | ||||||||||||||
Cost of sales | 21,793 | 235 | (a) | (406 | ) | (b) | 21,622 | |||||||
Selling, general and administrative expenses | 4,287 | 1 | (136 | ) | (c) | 4,152 | ||||||||
Interest and other financial charges | 1,174 | — | — | 1,174 | ||||||||||
Investment contracts, insurance losses and insurance annuity benefits | 657 | — | — | 657 | ||||||||||
Non-operating benefit costs | — | — | 561 | 561 | ||||||||||
Other costs and expenses | 133 | — | — | 133 | ||||||||||
Total costs and expenses | 28,044 | 235 | 20 | 28,299 | ||||||||||
Other income | — | 32 | 298 | 330 | ||||||||||
GE Capital earnings (loss) from continuing operations | — | — | — | — | ||||||||||
Earnings (loss) from continuing operations before income taxes | 1,515 | (367 | ) | (20 | ) | 1,127 | ||||||||
Benefit (provision) for income taxes | (15 | ) | 46 | 7 | 37 | |||||||||
Earnings (loss) from continuing operations | 1,499 | (321 | ) | (13 | ) | 1,165 | ||||||||
Earnings (loss) from discontinued operations, net of taxes | (146 | ) | — | — | (146 | ) | ||||||||
Net earnings (loss) | 1,354 | (321 | ) | (13 | ) | 1,019 | ||||||||
Less net earnings (loss) attributable to noncontrolling interests | (14 | ) | (25 | ) | — | (38 | ) | |||||||
Net earnings (loss) attributable to the Company | 1,367 | (297 | ) | (13 | ) | 1,057 | ||||||||
Preferred stock dividends | (182 | ) | — | — | (182 | ) | ||||||||
Net earnings (loss) attributable to GE common shareowners | $ | 1,185 | $ | (297 | ) | $ | (13 | ) | $ | 875 | ||||
Amounts attributable to GE common shareowners | ||||||||||||||
Earnings (loss) from continuing operations | $ | 1,499 | $ | (321 | ) | $ | (13 | ) | $ | 1,165 | ||||
Less net earnings (loss) attributable to noncontrolling interests, | ||||||||||||||
continuing operations | (21 | ) | (25 | ) | — | (45 | ) | |||||||
Earnings (loss) from continuing operations attributable to the Company | 1,520 | (297 | ) | (13 | ) | 1,210 | ||||||||
Preferred stock dividends | (182 | ) | — | — | (182 | ) | ||||||||
Earnings (loss) from continuing operations attributable | ||||||||||||||
to GE common shareowners | 1,338 | (297 | ) | (13 | ) | 1,028 | ||||||||
Earnings (loss) from discontinued operations, net of taxes | (146 | ) | — | — | (146 | ) | ||||||||
Less net earnings (loss) attributable to | ||||||||||||||
noncontrolling interests, discontinued operations | 7 | — | — | 7 | ||||||||||
Net earnings (loss) attributable to GE common shareowners | $ | 1,185 | $ | (297 | ) | $ | (13 | ) | $ | 875 | ||||
Per-share amounts | ||||||||||||||
Earnings (loss) from continuing operations | ||||||||||||||
Diluted earnings (loss) per share | $ | 0.15 | $ | (0.03 | ) | $ | 0.00 | $ | 0.12 | |||||
Basic earnings (loss) per share | $ | 0.15 | $ | (0.03 | ) | $ | 0.00 | $ | 0.12 | |||||
Net earnings (loss) | ||||||||||||||
Diluted earnings (loss) per share | $ | 0.13 | $ | (0.03 | ) | $ | 0.00 | $ | 0.10 | |||||
Basic earnings (loss) per share | $ | 0.14 | $ | (0.03 | ) | $ | 0.00 | $ | 0.10 | |||||
Dividends declared per common share | $ | 0.24 | $ | 0.00 | $ | 0.00 | $ | 0.24 |
(a) | Refer to Summary of Operating Segments for information by segment. |
(b) | Other Changes includes adjustments of $(383) million and $20 million related to ASU 2017-07 (pension and other benefit costs) and our change in inventory cost methodology, respectively. |
(c) | Other Changes includes an adjustment of $(179) million related to ASU 2017-07 (pension and other benefit costs). |
Amounts may not add due to rounding.
3
STATEMENT OF EARNINGS (LOSS) | ||||||||||||||
(UNAUDITED) | General Electric Company and consolidated affiliates | |||||||||||||
For the three months ended September 30 (In millions; per-share amounts in dollars) | Reported 2017 | ASC 606 | Other Changes | Restated 2017 | ||||||||||
Revenues | ||||||||||||||
Sales of goods and services | $ | 29,429 | $ | (664 | ) | (a) | $ | — | $ | 28,764 | ||||
Other income | 2,146 | — | (2,146 | ) | — | |||||||||
GE Capital revenues from services | 1,898 | — | — | 1,898 | ||||||||||
Total revenues | 33,472 | (664 | ) | (2,146 | ) | 30,662 | ||||||||
Costs and expenses | ||||||||||||||
Cost of sales | 24,094 | 30 | (a) | (452 | ) | (b) | 23,672 | |||||||
Selling, general and administrative expenses | 4,855 | 1 | (116 | ) | (c) | 4,741 | ||||||||
Interest and other financial charges | 1,232 | — | — | 1,232 | ||||||||||
Investment contracts, insurance losses and insurance annuity benefits | 617 | — | — | 617 | ||||||||||
Non-operating benefit costs | — | — | 611 | 611 | ||||||||||
Other costs and expenses | 1,208 | — | — | 1,208 | ||||||||||
Total costs and expenses | 32,006 | 31 | 44 | 32,082 | ||||||||||
Other income | — | 19 | 2,146 | 2,165 | ||||||||||
GE Capital earnings (loss) from continuing operations | — | — | — | — | ||||||||||
Earnings (loss) from continuing operations before income taxes | 1,466 | (676 | ) | (44 | ) | 746 | ||||||||
Benefit (provision) for income taxes | 334 | 201 | 16 | 551 | ||||||||||
Earnings (loss) from continuing operations | 1,800 | (475 | ) | (28 | ) | 1,297 | ||||||||
Earnings (loss) from discontinued operations, net of taxes | (106 | ) | — | — | (106 | ) | ||||||||
Net earnings (loss) | 1,694 | (475 | ) | (28 | ) | 1,191 | ||||||||
Less net earnings (loss) attributable to noncontrolling interests | (142 | ) | (28 | ) | — | (169 | ) | |||||||
Net earnings (loss) attributable to the Company | 1,836 | (447 | ) | (28 | ) | 1,360 | ||||||||
Preferred stock dividends | (36 | ) | — | — | (36 | ) | ||||||||
Net earnings (loss) attributable to GE common shareowners | $ | 1,800 | $ | (447 | ) | $ | (28 | ) | $ | 1,324 | ||||
Amounts attributable to GE common shareowners | ||||||||||||||
Earnings (loss) from continuing operations | $ | 1,800 | $ | (475 | ) | $ | (28 | ) | $ | 1,297 | ||||
Less net earnings (loss) attributable to noncontrolling interests, | ||||||||||||||
continuing operations | (141 | ) | (28 | ) | — | (169 | ) | |||||||
Earnings (loss) from continuing operations attributable to the Company | 1,941 | (447 | ) | (28 | ) | 1,466 | ||||||||
Preferred stock dividends | (36 | ) | — | — | (36 | ) | ||||||||
Earnings (loss) from continuing operations attributable | ||||||||||||||
to GE common shareowners | 1,905 | (447 | ) | (28 | ) | 1,430 | ||||||||
Earnings (loss) from discontinued operations, net of taxes | (106 | ) | — | — | (106 | ) | ||||||||
Less net earnings (loss) attributable to | ||||||||||||||
noncontrolling interests, discontinued operations | (1 | ) | — | — | (1 | ) | ||||||||
Net earnings (loss) attributable to GE common shareowners | $ | 1,800 | $ | (447 | ) | $ | (28 | ) | $ | 1,324 | ||||
Per-share amounts | ||||||||||||||
Earnings (loss) from continuing operations | ||||||||||||||
Diluted earnings (loss) per share | $ | 0.22 | $ | (0.05 | ) | $ | 0.00 | $ | 0.16 | |||||
Basic earnings (loss) per share | $ | 0.22 | $ | (0.05 | ) | $ | 0.00 | $ | 0.16 | |||||
Net earnings (loss) | ||||||||||||||
Diluted earnings (loss) per share | $ | 0.21 | $ | (0.05 | ) | $ | 0.00 | $ | 0.15 | |||||
Basic earnings (loss) per share | $ | 0.21 | $ | (0.05 | ) | $ | 0.00 | $ | 0.15 | |||||
Dividends declared per common share | $ | 0.24 | $ | 0.00 | $ | 0.00 | $ | 0.24 |
(a) | Refer to Summary of Operating Segments for information by segment. |
(b) | Other Changes includes adjustments of $(434) million and $44 million related to ASU 2017-07 (pension and other benefit costs) and our change in inventory cost methodology, respectively. |
(c) | Other Changes includes an adjustment of $(178) million related to ASU 2017-07 (pension and other benefit costs). |
Amounts may not add due to rounding.
4
STATEMENT OF EARNINGS (LOSS) | ||||||||||||||
(UNAUDITED) | General Electric Company and consolidated affiliates | |||||||||||||
For the three months ended December 31 (In millions; per-share amounts in dollars) | Reported 2017 | ASC 606 | Other Changes | Restated 2017 | ||||||||||
Revenues | ||||||||||||||
Sales of goods and services | $ | 31,297 | $ | (785 | ) | (a) | $ | — | $ | 30,512 | ||||
Other income | (987 | ) | — | 987 | — | |||||||||
GE Capital revenues from services | 1,091 | — | — | 1,091 | ||||||||||
Total revenues | 31,402 | (785 | ) | 987 | (b) | 31,603 | ||||||||
Costs and expenses | ||||||||||||||
Cost of sales | 25,688 | (82 | ) | (a) | (248 | ) | (c) | 25,358 | ||||||
Selling, general and administrative expenses | 4,631 | (2 | ) | (240 | ) | (d) | 4,389 | |||||||
Interest and other financial charges | 1,324 | — | — | 1,324 | ||||||||||
Investment contracts, insurance losses and insurance annuity benefits | 10,260 | — | — | 10,260 | ||||||||||
Non-operating benefit costs | — | — | 576 | 576 | ||||||||||
Other costs and expenses | 2,101 | — | — | 2,101 | ||||||||||
Total costs and expenses | 44,004 | (84 | ) | 88 | 44,008 | |||||||||
Other income | — | 333 | (899 | ) | (b) | (566 | ) | |||||||
GE Capital earnings (loss) from continuing operations | — | — | — | — | ||||||||||
Earnings (loss) from continuing operations before income taxes | (12,603 | ) | (368 | ) | (1 | ) | (12,971 | ) | ||||||
Benefit (provision) for income taxes | 2,740 | (755 | ) | (e) | (67 | ) | (e) | 1,918 | ||||||
Earnings (loss) from continuing operations | (9,863 | ) | (1,123 | ) | (67 | ) | (11,053 | ) | ||||||
Earnings (loss) from discontinued operations, net of taxes | 182 | — | — | 182 | ||||||||||
Net earnings (loss) | (9,681 | ) | (1,123 | ) | (67 | ) | (10,871 | ) | ||||||
Less net earnings (loss) attributable to noncontrolling interests | (39 | ) | (16 | ) | 2 | (53 | ) | |||||||
Net earnings (loss) attributable to the Company | (9,642 | ) | (1,107 | ) | (69 | ) | (10,818 | ) | ||||||
Preferred stock dividends | (184 | ) | — | — | (184 | ) | ||||||||
Net earnings (loss) attributable to GE common shareowners | $ | (9,826 | ) | $ | (1,107 | ) | $ | (69 | ) | $ | (11,003 | ) | ||
Amounts attributable to GE common shareowners | ||||||||||||||
Earnings (loss) from continuing operations | $ | (9,863 | ) | $ | (1,123 | ) | $ | (67 | ) | $ | (11,053 | ) | ||
Less net earnings (loss) attributable to noncontrolling interests, | ||||||||||||||
continuing operations | (39 | ) | (16 | ) | 2 | (53 | ) | |||||||
Earnings (loss) from continuing operations attributable to the Company | (9,824 | ) | (1,107 | ) | (69 | ) | (10,999 | ) | ||||||
Preferred stock dividends | (184 | ) | — | — | (184 | ) | ||||||||
Earnings (loss) from continuing operations attributable | ||||||||||||||
to GE common shareowners | (10,008 | ) | (1,107 | ) | (69 | ) | (11,184 | ) | ||||||
Earnings (loss) from discontinued operations, net of taxes | 182 | — | — | 182 | ||||||||||
Less net earnings (loss) attributable to | ||||||||||||||
noncontrolling interests, discontinued operations | — | — | — | — | ||||||||||
Net earnings (loss) attributable to GE common shareowners | $ | (9,826 | ) | $ | (1,107 | ) | $ | (69 | ) | $ | (11,003 | ) | ||
Per-share amounts | ||||||||||||||
Earnings (loss) from continuing operations | ||||||||||||||
Diluted earnings (loss) per share | $ | (1.15 | ) | $ | (0.13 | ) | (f) | $ | (0.01 | ) | (f) | $ | (1.29 | ) |
Basic earnings (loss) per share | $ | (1.15 | ) | $ | (0.13 | ) | (f) | $ | (0.01 | ) | (f) | $ | (1.29 | ) |
Net earnings (loss) | ||||||||||||||
Diluted earnings (loss) per share | $ | (1.13 | ) | $ | (0.13 | ) | (f) | $ | (0.01 | ) | (f) | $ | (1.27 | ) |
Basic earnings (loss) per share | $ | (1.13 | ) | $ | (0.13 | ) | (f) | $ | (0.01 | ) | (f) | $ | (1.27 | ) |
Dividends declared per common share | $ | 0.12 | $ | 0.00 | $ | 0.00 | $ | 0.12 |
(a) | Refer to Summary of Operating Segments for information by segment. |
(b) | In addition to reclassifying Other income out of total revenues, Other Changes to Other income includes an adjustment of $87 million to our pre-tax gains on sales of business interests and our valuation allowance on businesses classified as held for sale as a result of our change in inventory cost methodology. |
(c) | Other Changes includes adjustments of $(454) million and $88 million related to ASU 2017-07 (pension and other benefit costs) and our change in inventory cost methodology, respectively. |
(d) | Other Changes includes an adjustment of $(122) million related to ASU 2017-07 (pension and other benefit costs). |
(e) | ASC 606 and Other Changes include adjustments of $(1,110) million and $(78) million, respectively, related to U.S. tax reform. |
(f) | ASC 606 and Other Changes include impacts of $(0.13) per share and $(0.01) per share, respectively, related to U.S. tax reform. |
Amounts may not add due to rounding.
5
STATEMENT OF EARNINGS (LOSS) | ||||||||||||||
(UNAUDITED) | General Electric Company and consolidated affiliates | |||||||||||||
For the year ended December 31 (In millions; per-share amounts in dollars) | Reported 2016 | ASC 606 | Other Changes | Restated 2016 | ||||||||||
Revenues | ||||||||||||||
Sales of goods and services | $ | 110,390 | $ | (220 | ) | (a) | $ | — | $ | 110,171 | ||||
Other income | 4,005 | — | (4,005 | ) | — | |||||||||
GE Capital revenues from services | 9,297 | — | — | 9,297 | ||||||||||
Total revenues | 123,693 | (220 | ) | (4,005 | ) | (b) | 119,469 | |||||||
Costs and expenses | ||||||||||||||
Cost of sales | 87,483 | 1,719 | (a) | (1,550 | ) | (c) | 87,652 | |||||||
Selling, general and administrative expenses | 18,377 | (4 | ) | (616 | ) | (d) | 17,756 | |||||||
Interest and other financial charges | 5,025 | — | — | 5,025 | ||||||||||
Investment contracts, insurance losses and insurance annuity benefits | 2,797 | — | — | 2,797 | ||||||||||
Non-operating benefit costs | — | — | 2,365 | 2,365 | ||||||||||
Other costs and expenses | 982 | — | — | 982 | ||||||||||
Total costs and expenses | 114,663 | 1,715 | 199 | 116,577 | ||||||||||
Other income | — | 163 | 3,977 | (b) | 4,140 | |||||||||
GE Capital earnings (loss) from continuing operations | — | — | — | — | ||||||||||
Earnings (loss) from continuing operations before income taxes | 9,030 | (1,772 | ) | (227 | ) | 7,031 | ||||||||
Benefit (provision) for income taxes | 464 | 589 | 80 | 1,133 | ||||||||||
Earnings (loss) from continuing operations | 9,494 | (1,182 | ) | (147 | ) | 8,165 | ||||||||
Earnings (loss) from discontinued operations, net of taxes | (954 | ) | — | — | (954 | ) | ||||||||
Net earnings (loss) | 8,540 | (1,182 | ) | (147 | ) | 7,211 | ||||||||
Less net earnings (loss) attributable to noncontrolling interests | (291 | ) | 2 | — | (289 | ) | ||||||||
Net earnings (loss) attributable to the Company | 8,831 | (1,184 | ) | (147 | ) | 7,500 | ||||||||
Preferred stock dividends | (656 | ) | — | — | (656 | ) | ||||||||
Net earnings (loss) attributable to GE common shareowners | $ | 8,176 | $ | (1,184 | ) | $ | (147 | ) | $ | 6,845 | ||||
Amounts attributable to GE common shareowners | ||||||||||||||
Earnings (loss) from continuing operations | $ | 9,494 | $ | (1,182 | ) | $ | (147 | ) | $ | 8,165 | ||||
Less net earnings (loss) attributable to noncontrolling interests, | ||||||||||||||
continuing operations | (290 | ) | 2 | — | (288 | ) | ||||||||
Earnings (loss) from continuing operations attributable to the Company | 9,784 | (1,184 | ) | (147 | ) | 8,453 | ||||||||
Preferred stock dividends | (656 | ) | — | — | (656 | ) | ||||||||
Earnings (loss) from continuing operations attributable | ||||||||||||||
to GE common shareowners | 9,128 | (1,184 | ) | (147 | ) | 7,797 | ||||||||
Earnings (loss) from discontinued operations, net of taxes | (954 | ) | — | — | (954 | ) | ||||||||
Less net earnings (loss) attributable to | ||||||||||||||
noncontrolling interests, discontinued operations | (1 | ) | — | — | (1 | ) | ||||||||
Net earnings (loss) attributable to GE common shareowners | $ | 8,176 | $ | (1,184 | ) | $ | (147 | ) | $ | 6,845 | ||||
Per-share amounts | ||||||||||||||
Earnings (loss) from continuing operations | ||||||||||||||
Diluted earnings (loss) per share | $ | 1.00 | $ | (0.13 | ) | $ | (0.02 | ) | $ | 0.85 | ||||
Basic earnings (loss) per share | $ | 1.01 | $ | (0.13 | ) | $ | (0.02 | ) | $ | 0.86 | ||||
Net earnings (loss) | ||||||||||||||
Diluted earnings (loss) per share | $ | 0.89 | $ | (0.13 | ) | $ | (0.02 | ) | $ | 0.75 | ||||
Basic earnings (loss) per share | $ | 0.90 | $ | (0.13 | ) | $ | (0.02 | ) | $ | 0.76 | ||||
Dividends declared per common share | $ | 0.93 | $ | 0.00 | $ | 0.00 | $ | 0.93 |
(a) | Refer to Summary of Operating Segments for information by segment. |
(b) | In addition to reclassifying Other income out of total revenues, Other Changes to Other income includes an adjustment of $(28) million to our pre-tax gains on sales of business interests as a result of our change in inventory cost methodology. |
(c) | Other Changes includes adjustments of $(1,619) million and $199 million related to ASU 2017-07 (pension and other benefit costs) and our change in inventory cost methodology, respectively. |
(d) | Other Changes includes an adjustment of $(746) million related to ASU 2017-07 (pension and other benefit costs). |
Amounts may not add due to rounding.
6
STATEMENT OF FINANCIAL POSITION | ||||||||||||||
(UNAUDITED) | General Electric Company and consolidated affiliates | |||||||||||||
December 31 (In millions, except share amounts) | Reported 2017 | ASC 606 | Other Changes | Restated 2017 | ||||||||||
Assets | ||||||||||||||
Cash, cash equivalents and restricted cash | $ | 43,299 | $ | — | $ | 668 | (a) | $ | 43,967 | |||||
Investment securities | 38,696 | — | — | 38,696 | ||||||||||
Current receivables | 24,438 | (230 | ) | — | 24,209 | |||||||||
Inventories | 21,923 | (1,986 | ) | (517 | ) | (b) | 19,419 | |||||||
Financing receivables – net | 10,336 | — | — | 10,336 | ||||||||||
Other GE Capital receivables | 6,301 | — | — | 6,301 | ||||||||||
Property, plant and equipment – net | 53,874 | — | — | 53,874 | ||||||||||
Receivable from GE Capital (debt assumption) | — | — | — | — | ||||||||||
Investment in GE Capital | — | — | — | — | ||||||||||
Goodwill | 83,968 | — | — | 83,968 | ||||||||||
Other intangible assets – net | 20,273 | — | — | 20,273 | ||||||||||
Contract and other deferred assets | 28,861 | (8,505 | ) | (c) | — | 20,356 | ||||||||
All other assets | 29,612 | 5 | (668 | ) | (a) | 28,949 | ||||||||
Deferred income taxes | 6,207 | 2,503 | (d) | 108 | (d) | 8,819 | ||||||||
Assets of businesses held for sale | 4,243 | (104 | ) | 25 | 4,164 | |||||||||
Assets of discontinued operations | 5,912 | — | — | 5,912 | ||||||||||
Total assets | $ | 377,945 | $ | (8,317 | ) | $ | (384 | ) | $ | 369,244 | ||||
Liabilities and equity | ||||||||||||||
Short-term borrowings | $ | 24,036 | $ | — | $ | — | $ | 24,036 | ||||||
Accounts payable, principally trade accounts | 15,153 | 20 | (1 | ) | 15,172 | |||||||||
Progress collections and deferred income | 18,462 | 3,655 | (e) | — | 22,117 | |||||||||
Dividends payable | 1,052 | — | — | 1,052 | ||||||||||
Other GE current liabilities | 18,697 | (1,778 | ) | (e) | — | 16,919 | ||||||||
Non-recourse borrowings of consolidated securitization entities | 1,980 | — | — | 1,980 | ||||||||||
Long-term borrowings | 108,575 | — | — | 108,575 | ||||||||||
Investment contracts, insurance liabilities and insurance annuity benefits | 38,136 | — | — | 38,136 | ||||||||||
Non-current compensation and benefits | 41,630 | — | — | 41,630 | ||||||||||
All other liabilities | 22,795 | (2,011 | ) | (e) | — | 20,784 | ||||||||
Liabilities of businesses held for sale | 1,339 | (83 | ) | (8 | ) | 1,248 | ||||||||
Liabilities of discontinued operations | 706 | — | — | 706 | ||||||||||
Total liabilities | 292,561 | (197 | ) | (9 | ) | 292,355 | ||||||||
Redeemable noncontrolling interests | 3,399 | (10 | ) | 2 | 3,391 | |||||||||
Preferred stock (5,939,874 shares outstanding) | 6 | — | — | 6 | ||||||||||
Common stock (8,680,571,000 shares outstanding) | 702 | — | — | 702 | ||||||||||
Accumulated other comprehensive income (loss) – net attributable to GE | ||||||||||||||
Investment securities | (102 | ) | — | — | (102 | ) | ||||||||
Currency translation adjustments | (4,653 | ) | (8 | ) | — | (4,661 | ) | |||||||
Cash flow hedges | 62 | — | — | 62 | ||||||||||
Benefit plans | (9,702 | ) | — | — | (9,702 | ) | ||||||||
Other capital | 37,171 | 213 | — | 37,384 | ||||||||||
Retained earnings | 125,682 | (8,061 | ) | (377 | ) | 117,244 | ||||||||
Less common stock held in treasury | (84,902 | ) | — | — | (84,902 | ) | ||||||||
Total GE shareowners’ equity | 64,263 | (7,856 | ) | (377 | ) | 56,030 | ||||||||
Noncontrolling interests | 17,723 | (255 | ) | — | 17,468 | |||||||||
Total equity | 81,986 | (8,111 | ) | (377 | ) | 73,498 | ||||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 377,945 | $ | (8,317 | ) | $ | (384 | ) | $ | 369,244 |
(a) | Other Changes adjustment due to reclassification of restricted cash from All other assets in conjunction with the adoption of ASU 2016-18. |
(b) | Other Changes adjustment attributable to our change in inventory cost methodology. |
(c) | ASC 606 includes adjustments of $(8,701) million to long-term product service agreements, $365 million to long-term equipment contract revenue, $(260) million to deferred inventory costs and $90 million to non-recurring engineering costs. |
(d) | ASC 606 and Other Changes include adjustments of $1,110 million and $78 million, respectively, related to U.S. tax reform. |
(e) | ASC 606 includes $1,543 million and $1,839 million of deferred income reclassified from Other GE current liabilities and All other liabilities, respectively, to Progress collections and deferred income. The remaining $272 million adjustment to Progress collections and deferred income is due to the change in the timing of revenue recognition as a result of the adoption of ASC 606. |
Amounts may not add due to rounding.
7
SUMMARY OF OPERATING SEGMENTS | ||||||||||||||
(UNAUDITED) | For the year ended December 31 | |||||||||||||
(In millions) | Reported 2017 | ASC 606 | Other Changes | Restated 2017 | ||||||||||
Revenues | ||||||||||||||
Power | $ | 35,990 | $ | (914 | ) | $ | (198 | ) | $ | 34,878 | ||||
Renewable Energy | 10,280 | (1,007 | ) | (a) | (69 | ) | 9,205 | |||||||
Oil & Gas | 17,231 | 51 | (101 | ) | 17,180 | |||||||||
Aviation | 27,375 | (124 | ) | (b) | (238 | ) | 27,013 | |||||||
Healthcare | 19,116 | 8 | (108 | ) | 19,017 | |||||||||
Transportation | 4,178 | (247 | ) | 4 | 3,935 | |||||||||
Lighting | 1,987 | — | (46 | ) | 1,941 | |||||||||
Total industrial segment revenues | 116,157 | (2,233 | ) | (756 | ) | 113,168 | ||||||||
Capital | 9,070 | — | — | 9,070 | ||||||||||
Total segment revenues | 125,227 | (2,233 | ) | (756 | ) | 122,239 | ||||||||
Corporate items and eliminations | (3,135 | ) | 9 | (869 | ) | (3,995 | ) | |||||||
Consolidated revenues | $ | 122,092 | $ | (2,224 | ) | $ | (1,625 | ) | (c) | $ | 118,243 | |||
Segment profit (loss) | ||||||||||||||
Power | $ | 2,786 | $ | (831 | ) | $ | (8 | ) | $ | 1,947 | ||||
Renewable Energy | 727 | (121 | ) | (23 | ) | 583 | ||||||||
Oil & Gas | 220 | (21 | ) | (41 | ) | 158 | ||||||||
Aviation | 6,642 | (1,221 | ) | (51 | ) | 5,370 | ||||||||
Healthcare | 3,448 | (37 | ) | 77 | 3,488 | |||||||||
Transportation | 824 | (252 | ) | 69 | 641 | |||||||||
Lighting | 93 | — | (66 | ) | 27 | |||||||||
Total industrial segment profit | 14,740 | (2,483 | ) | (44 | ) | 12,213 | ||||||||
Capital | (6,765 | ) | — | — | (6,765 | ) | ||||||||
Total segment profit (loss) | 7,975 | (2,483 | ) | (44 | ) | (d) | 5,448 | |||||||
Corporate items and eliminations | (7,871 | ) | 306 | 2,340 | (5,225 | ) | ||||||||
GE interest and other financial charges | (2,753 | ) | — | — | (2,753 | ) | ||||||||
GE non-operating benefit costs | — | — | (2,385 | ) | (2,385 | ) | ||||||||
GE benefit (provision) for income taxes | (3,259 | ) | (395 | ) | (e) | (37 | ) | (e) | (3,691 | ) | ||||
Earnings (loss) from continuing operations attributable to GE common shareowners | (5,907 | ) | (2,572 | ) | (126 | ) | (8,605 | ) | ||||||
Earnings (loss) from discontinued operations, net of taxes | (309 | ) | — | — | (309 | ) | ||||||||
Less net earnings attributable to | ||||||||||||||
noncontrolling interests, discontinued operations | 6 | — | — | 6 | ||||||||||
Earnings (loss) from discontinued operations, | ||||||||||||||
net of tax and noncontrolling interest | (315 | ) | — | — | (315 | ) | ||||||||
Consolidated net earnings (loss) attributable to the GE common shareowners | $ | (6,222 | ) | $ | (2,572 | ) | $ | (126 | ) | $ | (8,920 | ) |
(a) | The decrease in revenues in Renewable Energy is primarily due to the acceleration of revenues from 2017 into 2016 driven by the timing of transfer of control. |
(b) | In addition to changes in long-term service agreements and engine accounting as previously described, the adjustment also includes a reclassification of revenue share partner costs. Previously, these costs were recorded as a reduction to revenues and are now recorded as an increase to costs as a result of the application of the new revenue standard to these arrangements. |
(c) | Other Changes adjustment is attributable to the reclassification of Other income out of total revenues. While Other income is now excluded from segment revenues, it will remain as part of industrial segment profit. |
(d) | Other Changes includes adjustments of $(177) million and $133 million related to our change in inventory cost methodology and ASU 2017-07 (pension and other benefit costs), respectively. |
(e) | ASC 606 and Other Changes include adjustments of $(1,110) million and $(78) million, respectively, related to U.S. tax reform. |
Amounts may not add due to rounding.
8
SUMMARY OF OPERATING SEGMENTS | ||||||||||||||
(UNAUDITED) | For the three months ended March 31 | |||||||||||||
(In millions) | Reported 2017 | ASC 606 | Other Changes | Restated 2017 | ||||||||||
Revenues | ||||||||||||||
Power | $ | 8,288 | $ | (303 | ) | $ | (46 | ) | $ | 7,940 | ||||
Renewable Energy | 2,044 | (271 | ) | (a) | (6 | ) | 1,767 | |||||||
Oil & Gas | 3,001 | 97 | (12 | ) | 3,086 | |||||||||
Aviation | 6,804 | (91 | ) | (b) | (41 | ) | 6,673 | |||||||
Healthcare | 4,291 | 25 | (11 | ) | 4,305 | |||||||||
Transportation | 1,039 | (63 | ) | 3 | 979 | |||||||||
Lighting | 475 | — | (13 | ) | 462 | |||||||||
Total industrial segment revenues | 25,943 | (605 | ) | (125 | ) | 25,212 | ||||||||
Capital | 2,681 | — | — | 2,681 | ||||||||||
Total segment revenues | 28,624 | (605 | ) | (125 | ) | 27,894 | ||||||||
Corporate items and eliminations | (964 | ) | (6 | ) | (43 | ) | (1,013 | ) | ||||||
Consolidated revenues | $ | 27,660 | $ | (611 | ) | $ | (168 | ) | (c) | $ | 26,881 | |||
Segment profit (loss) | ||||||||||||||
Power | $ | 817 | $ | (365 | ) | $ | (15 | ) | $ | 438 | ||||
Renewable Energy | 107 | (26 | ) | (11 | ) | 70 | ||||||||
Oil & Gas | 207 | 50 | 2 | 260 | ||||||||||
Aviation | 1,684 | (417 | ) | 6 | 1,273 | |||||||||
Healthcare | 643 | 5 | 13 | 661 | ||||||||||
Transportation | 156 | (67 | ) | 6 | 95 | |||||||||
Lighting | 8 | — | 2 | 10 | ||||||||||
Total industrial segment profit | 3,622 | (819 | ) | 4 | 2,807 | |||||||||
Capital | (47 | ) | — | — | (47 | ) | ||||||||
Total segment profit (loss) | 3,575 | (819 | ) | 4 | (d) | 2,760 | ||||||||
Corporate items and eliminations | (2,009 | ) | (15 | ) | 623 | (1,402 | ) | |||||||
GE interest and other financial charges | (564 | ) | — | — | (564 | ) | ||||||||
GE non-operating benefit costs | — | — | (649 | ) | (649 | ) | ||||||||
GE benefit (provision) for income taxes | (143 | ) | 113 | 8 | (23 | ) | ||||||||
Earnings (loss) from continuing operations attributable to GE common shareowners | 858 | (721 | ) | (15 | ) | 122 | ||||||||
Earnings (loss) from discontinued operations, net of taxes | (239 | ) | — | — | (239 | ) | ||||||||
Less net earnings attributable to | ||||||||||||||
noncontrolling interests, discontinued operations | — | — | — | — | ||||||||||
Earnings (loss) from discontinued operations, | ||||||||||||||
net of tax and noncontrolling interest | (239 | ) | — | — | (239 | ) | ||||||||
Consolidated net earnings (loss) attributable to the GE common shareowners | $ | 619 | $ | (721 | ) | $ | (15 | ) | $ | (117 | ) |
(a) | The decrease in revenues in Renewable Energy is primarily due to the acceleration of revenues from 2017 into 2016 driven by the timing of transfer of control. |
(b) | In addition to changes in long-term service agreements and engine accounting as previously described, the adjustment also includes a reclassification of revenue share partner costs. Previously, these costs were recorded as a reduction to revenues and are now recorded as an increase to costs as a result of the application of the new revenue standard to these arrangements. |
(c) | Other Changes adjustment is attributable to the reclassification of Other income out of total revenues. While Other income is now excluded from segment revenues, it will remain as part of industrial segment profit. |
(d) | Other Changes includes adjustments of $(22) million and $26 million related to our change in inventory cost methodology and ASU 2017-07 (pension and other benefit costs), respectively. |
Amounts may not add due to rounding.
9
SUMMARY OF OPERATING SEGMENTS | ||||||||||||||
(UNAUDITED) | For the three months ended June 30 | |||||||||||||
(In millions) | Reported 2017 | ASC 606 | Other Changes | Restated 2017 | ||||||||||
Revenues | ||||||||||||||
Power | $ | 9,602 | $ | (185 | ) | $ | (16 | ) | $ | 9,400 | ||||
Renewable Energy | 2,457 | (105 | ) | (a) | (40 | ) | 2,312 | |||||||
Oil & Gas | 3,108 | (35 | ) | (77 | ) | 2,997 | ||||||||
Aviation | 6,532 | 165 | (b) | (62 | ) | 6,634 | ||||||||
Healthcare | 4,700 | (4 | ) | (8 | ) | 4,688 | ||||||||
Transportation | 1,071 | 3 | 3 | 1,077 | ||||||||||
Lighting | 484 | — | (10 | ) | 473 | |||||||||
Total industrial segment revenues | 27,954 | (161 | ) | (210 | ) | 27,582 | ||||||||
Capital | 2,446 | — | — | 2,446 | ||||||||||
Total segment revenues | 30,400 | (161 | ) | (210 | ) | 30,028 | ||||||||
Corporate items and eliminations | (841 | ) | (3 | ) | (88 | ) | (932 | ) | ||||||
Consolidated revenues | $ | 29,558 | $ | (164 | ) | $ | (298 | ) | (c) | $ | 29,097 | |||
Segment profit (loss) | ||||||||||||||
Power | $ | 1,099 | $ | (114 | ) | $ | 9 | $ | 994 | |||||
Renewable Energy | 160 | (13 | ) | 11 | 158 | |||||||||
Oil & Gas | 155 | (43 | ) | 8 | 120 | |||||||||
Aviation | 1,492 | (132 | ) | 14 | 1,374 | |||||||||
Healthcare | 826 | (18 | ) | 18 | 826 | |||||||||
Transportation | 203 | (32 | ) | 12 | 183 | |||||||||
Lighting | 13 | — | 4 | 17 | ||||||||||
Total industrial segment profit | 3,947 | (351 | ) | 77 | 3,673 | |||||||||
Capital | (172 | ) | — | — | (172 | ) | ||||||||
Total segment profit (loss) | 3,775 | (351 | ) | 77 | (d) | 3,502 | ||||||||
Corporate items and eliminations | (1,583 | ) | 9 | 454 | (1,120 | ) | ||||||||
GE interest and other financial charges | (637 | ) | — | — | (637 | ) | ||||||||
GE non-operating benefit costs | — | — | (552 | ) | (552 | ) | ||||||||
GE benefit (provision) for income taxes | (218 | ) | 46 | 7 | (165 | ) | ||||||||
Earnings (loss) from continuing operations attributable to GE common shareowners | 1,338 | (297 | ) | (13 | ) | 1,028 | ||||||||
Earnings (loss) from discontinued operations, net of taxes | (146 | ) | — | — | (146 | ) | ||||||||
Less net earnings attributable to | ||||||||||||||
noncontrolling interests, discontinued operations | 7 | — | — | 7 | ||||||||||
Earnings (loss) from discontinued operations, | ||||||||||||||
net of tax and noncontrolling interest | (152 | ) | — | — | (152 | ) | ||||||||
Consolidated net earnings (loss) attributable to the GE common shareowners | $ | 1,185 | $ | (297 | ) | $ | (13 | ) | $ | 875 |
(a) | The decrease in revenues in Renewable Energy is primarily due to the acceleration of revenues from 2017 into 2016 driven by the timing of transfer of control. |
(b) | In addition to changes in long-term service agreements and engine accounting as previously described, the adjustment also includes a reclassification of revenue share partner costs. Previously, these costs were recorded as a reduction to revenues and are now recorded as an increase to costs as a result of the application of the new revenue standard to these arrangements. |
(c) | Other Changes adjustment is attributable to the reclassification of Other income out of total revenues. While Other income is now excluded from segment revenues, it will remain as part of industrial segment profit. |
(d) | Other Changes includes adjustments of $(20) million and $98 million related to our change in inventory cost methodology and ASU 2017-07 (pension and other benefit costs), respectively. |
Amounts may not add due to rounding.
10
SUMMARY OF OPERATING SEGMENTS | ||||||||||||||
(UNAUDITED) | For the three months ended September 30 | |||||||||||||
(In millions) | Reported 2017 | ASC 606 | Other Changes | Restated 2017 | ||||||||||
Revenues | ||||||||||||||
Power | $ | 8,679 | $ | (76 | ) | $ | (75 | ) | $ | 8,527 | ||||
Renewable Energy | 2,905 | (397 | ) | (a) | — | 2,507 | ||||||||
Oil & Gas | 5,365 | (42 | ) | (13 | ) | 5,311 | ||||||||
Aviation | 6,816 | (58 | ) | (b) | (63 | ) | 6,696 | |||||||
Healthcare | 4,724 | 33 | (47 | ) | 4,710 | |||||||||
Transportation | 1,074 | (125 | ) | (1 | ) | 949 | ||||||||
Lighting | 483 | — | (12 | ) | 472 | |||||||||
Total industrial segment revenues | 30,046 | (664 | ) | (211 | ) | 29,171 | ||||||||
Capital | 2,397 | — | — | 2,397 | ||||||||||
Total segment revenues | 32,444 | (664 | ) | (211 | ) | 31,569 | ||||||||
Corporate items and eliminations | 1,028 | — | (1,935 | ) | (907 | ) | ||||||||
Consolidated revenues | $ | 33,472 | $ | (664 | ) | $ | (2,146 | ) | (c) | $ | 30,662 | |||
Segment profit (loss) | ||||||||||||||
Power | $ | 611 | $ | (140 | ) | $ | (7 | ) | $ | 464 | ||||
Renewable Energy | 257 | (49 | ) | 9 | 217 | |||||||||
Oil & Gas | (36 | ) | (14 | ) | (7 | ) | (57 | ) | ||||||
Aviation | 1,680 | (312 | ) | (33 | ) | 1,335 | ||||||||
Healthcare | 820 | 6 | 22 | 847 | ||||||||||
Transportation | 276 | (142 | ) | 7 | 141 | |||||||||
Lighting | 23 | — | (8 | ) | 14 | |||||||||
Total industrial segment profit | 3,630 | (652 | ) | (16 | ) | 2,961 | ||||||||
Capital | 24 | — | — | 24 | ||||||||||
Total segment profit (loss) | 3,654 | (652 | ) | (16 | ) | (d) | 2,985 | |||||||
Corporate items and eliminations | (1,095 | ) | 4 | 582 | (509 | ) | ||||||||
GE interest and other financial charges | (718 | ) | — | — | (718 | ) | ||||||||
GE non-operating benefit costs | — | — | (610 | ) | (610 | ) | ||||||||
GE benefit (provision) for income taxes | 64 | 201 | 16 | 281 | ||||||||||
Earnings (loss) from continuing operations attributable to GE common shareowners | 1,905 | (447 | ) | (28 | ) | 1,430 | ||||||||
Earnings (loss) from discontinued operations, net of taxes | (106 | ) | — | — | (106 | ) | ||||||||
Less net earnings attributable to | ||||||||||||||
noncontrolling interests, discontinued operations | (1 | ) | — | — | (1 | ) | ||||||||
Earnings (loss) from discontinued operations, | ||||||||||||||
net of tax and noncontrolling interest | (105 | ) | — | — | (105 | ) | ||||||||
Consolidated net earnings (loss) attributable to the GE common shareowners | $ | 1,800 | $ | (447 | ) | $ | (28 | ) | $ | 1,324 |
(a) | The decrease in revenues in Renewable Energy is primarily due to the acceleration of revenues from 2017 into 2016 driven by the timing of transfer of control. |
(b) | In addition to changes in long-term service agreements and engine accounting as previously described, the adjustment also includes a reclassification of revenue share partner costs. Previously, these costs were recorded as a reduction to revenues and are now recorded as an increase to costs as a result of the application of the new revenue standard to these arrangements. |
(c) | Other Changes adjustment is attributable to the reclassification of Other income out of total revenues. While Other income is now excluded from segment revenues, it will remain as part of industrial segment profit. |
(d) | Other Changes includes adjustments of $(44) million and $28 million related to our change in inventory cost methodology and ASU 2017-07 (pension and other benefit costs), respectively. |
Amounts may not add due to rounding.
11
SUMMARY OF OPERATING SEGMENTS | ||||||||||||||
(UNAUDITED) | For the three months ended December 31 | |||||||||||||
(In millions) | Reported 2017 | ASC 606 | Other Changes | Restated 2017 | ||||||||||
Revenues | ||||||||||||||
Power | $ | 9,421 | $ | (349 | ) | $ | (61 | ) | $ | 9,011 | ||||
Renewable Energy | 2,875 | (234 | ) | (a) | (23 | ) | 2,618 | |||||||
Oil & Gas | 5,756 | 30 | — | 5,786 | ||||||||||
Aviation | 7,222 | (140 | ) | (b) | (72 | ) | 7,010 | |||||||
Healthcare | 5,402 | (46 | ) | (42 | ) | 5,314 | ||||||||
Transportation | 993 | (63 | ) | (1 | ) | 929 | ||||||||
Lighting | 546 | — | (11 | ) | 534 | |||||||||
Total industrial segment revenues | 32,214 | (802 | ) | (210 | ) | 31,202 | ||||||||
Capital | 1,545 | — | — | 1,545 | ||||||||||
Total segment revenues | 33,759 | (802 | ) | (210 | ) | 32,747 | ||||||||
Corporate items and eliminations | (2,358 | ) | 17 | 1,197 | (1,144 | ) | ||||||||
Consolidated revenues | $ | 31,402 | $ | (785 | ) | $ | 987 | (c) | $ | 31,603 | ||||
Segment profit (loss) | ||||||||||||||
Power | $ | 260 | $ | (213 | ) | $ | 3 | $ | 51 | |||||
Renewable Energy | 203 | (33 | ) | (32 | ) | 138 | ||||||||
Oil & Gas | (105 | ) | (14 | ) | (45 | ) | (165 | ) | ||||||
Aviation | 1,786 | (360 | ) | (37 | ) | 1,388 | ||||||||
Healthcare | 1,159 | (30 | ) | 24 | 1,153 | |||||||||
Transportation | 189 | (11 | ) | 43 | 221 | |||||||||
Lighting | 50 | — | (64 | ) | (15 | ) | ||||||||
Total industrial segment profit | 3,542 | (661 | ) | (109 | ) | 2,772 | ||||||||
Capital | (6,569 | ) | — | — | (6,569 | ) | ||||||||
Total segment profit (loss) | (3,028 | ) | (661 | ) | (109 | ) | (d) | (3,798 | ) | |||||
Corporate items and eliminations | (3,184 | ) | 309 | 680 | (2,194 | ) | ||||||||
GE interest and other financial charges | (834 | ) | — | — | (834 | ) | ||||||||
GE non-operating benefit costs | — | — | (574 | ) | (574 | ) | ||||||||
GE benefit (provision) for income taxes | (2,962 | ) | (755 | ) | (e) | (67 | ) | (e) | (3,784 | ) | ||||
Earnings (loss) from continuing operations attributable to GE common shareowners | (10,008 | ) | (1,107 | ) | (69 | ) | (11,184 | ) | ||||||
Earnings (loss) from discontinued operations, net of taxes | 182 | — | — | 182 | ||||||||||
Less net earnings attributable to | ||||||||||||||
noncontrolling interests, discontinued operations | — | — | — | — | ||||||||||
Earnings (loss) from discontinued operations, | ||||||||||||||
net of tax and noncontrolling interest | 182 | — | — | 182 | ||||||||||
Consolidated net earnings (loss) attributable to the GE common shareowners | $ | (9,826 | ) | $ | (1,107 | ) | $ | (69 | ) | $ | (11,003 | ) |
(a) | The decrease in revenues in Renewable Energy is primarily due to the acceleration of revenues from 2017 into 2016 driven by the timing of transfer of control. |
(b) | In addition to changes in long-term service agreements and engine accounting as previously described, the adjustment also includes a reclassification of revenue share partner costs. Previously, these costs were recorded as a reduction to revenues and are now recorded as an increase to costs as a result of the application of the new revenue standard to these arrangements. |
(c) | Other Changes adjustment is attributable to the reclassification of Other income out of total revenues. While Other income is now excluded from segment revenues, it will remain as part of industrial segment profit. |
(d) | Other Changes includes adjustments of $(90) million and $(19) million related to our change in inventory cost methodology and ASU 2017-07 (pension and other benefit costs), respectively. |
(e) | ASC 606 and Other Changes include adjustments of $(1,110) million and $(78) million, respectively, related to U.S. tax reform. |
Amounts may not add due to rounding.
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SUMMARY OF OPERATING SEGMENTS | ||||||||||||||
(UNAUDITED) | For the year ended December 31 | |||||||||||||
(In millions) | Reported 2016 | ASC 606 | Other Changes | Restated 2016 | ||||||||||
Revenues | ||||||||||||||
Power | $ | 36,795 | $ | (846 | ) | $ | (114 | ) | $ | 35,835 | ||||
Renewable Energy | 9,033 | 551 | (a) | 168 | 9,752 | |||||||||
Oil & Gas | 12,898 | (65 | ) | 105 | 12,938 | |||||||||
Aviation | 26,261 | 251 | (b) | (272 | ) | 26,240 | ||||||||
Healthcare | 18,291 | (10 | ) | (68 | ) | 18,212 | ||||||||
Transportation | 4,713 | (120 | ) | (8 | ) | 4,585 | ||||||||
Lighting | 4,823 | — | (61 | ) | 4,762 | |||||||||
Total industrial segment revenues | 112,814 | (240 | ) | (250 | ) | 112,324 | ||||||||
Capital | 10,905 | — | — | 10,905 | ||||||||||
Total segment revenues | 123,719 | (240 | ) | (250 | ) | 123,229 | ||||||||
Corporate items and eliminations | (26 | ) | 21 | (3,754 | ) | (3,760 | ) | |||||||
Consolidated revenues | $ | 123,693 | $ | (220 | ) | $ | (4,005 | ) | (c) | $ | 119,469 | |||
Segment profit (loss) | ||||||||||||||
Power | $ | 5,091 | $ | (876 | ) | $ | (28 | ) | $ | 4,187 | ||||
Renewable Energy | 576 | 91 | (35 | ) | 631 | |||||||||
Oil & Gas | 1,392 | (104 | ) | 13 | 1,302 | |||||||||
Aviation | 6,115 | (845 | ) | 53 | 5,324 | |||||||||
Healthcare | 3,161 | (25 | ) | 74 | 3,210 | |||||||||
Transportation | 1,064 | (120 | ) | 22 | 966 | |||||||||
Lighting | 199 | — | (34 | ) | 165 | |||||||||
Total industrial segment profit | 17,598 | (1,878 | ) | 66 | 15,785 | |||||||||
Capital | (1,251 | ) | — | — | (1,251 | ) | ||||||||
Total segment profit (loss) | 16,347 | (1,878 | ) | 66 | (d) | 14,534 | ||||||||
Corporate items and eliminations | (4,226 | ) | 104 | 2,057 | (2,064 | ) | ||||||||
GE interest and other financial charges | (2,026 | ) | — | — | (2,026 | ) | ||||||||
GE non-operating benefit costs | — | — | (2,349 | ) | (2,349 | ) | ||||||||
GE benefit (provision) for income taxes | (967 | ) | 589 | 80 | (298 | ) | ||||||||
Earnings (loss) from continuing operations attributable to GE common shareowners | 9,128 | (1,184 | ) | (147 | ) | 7,797 | ||||||||
Earnings (loss) from discontinued operations, net of taxes | (954 | ) | — | — | (954 | ) | ||||||||
Less net earnings attributable to | ||||||||||||||
noncontrolling interests, discontinued operations | (1 | ) | — | — | (1 | ) | ||||||||
Earnings (loss) from discontinued operations, | ||||||||||||||
net of tax and noncontrolling interest | (952 | ) | — | — | (952 | ) | ||||||||
Consolidated net earnings (loss) attributable to the GE common shareowners | $ | 8,176 | $ | (1,184 | ) | $ | (147 | ) | $ | 6,845 |
(a) | The increase in revenues in Renewable Energy is primarily due to the acceleration of revenues from 2017 into 2016 driven by the timing of transfer of control. |
(b) | In addition to changes in long-term service agreements and engine accounting as previously described, the adjustment also includes a reclassification of revenue share partner costs. Previously, these costs were recorded as a reduction to revenues and are now recorded as an increase to costs as a result of the application of the new revenue standard to these arrangements. |
(c) | Other Changes adjustment is attributable to the reclassification of Other income out of total revenues. While Other income is now excluded from segment revenues, it will remain as part of industrial segment profit. |
(d) | Other Changes includes adjustments of $(199) million and $265 million related to our change in inventory cost methodology and ASU 2017-07 (pension and other benefit costs), respectively. |
Amounts may not add due to rounding.
13