(Mark One)
þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2013
OR
|
¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from ____ to ____
|
Commission file number 001-00035
GENERAL ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
|
New York
|
14-0689340
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
3135 Easton Turnpike, Fairfield, CT
|
06828-0001
|
|
(Address of principal executive offices)
|
(Zip Code)
|
|
(Registrant’s telephone number, including area code) (203) 373-2211
_______________________________________________
(Former name, former address and former fiscal year,
if changed since last report)
|
Large accelerated filer þ
|
Accelerated filer ¨
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Non-accelerated filer ¨
|
Smaller reporting company ¨
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Page
|
||
Part I - Financial Information
|
||
Item 1. Financial Statements
|
||
Condensed Statement of Earnings
|
||
Three Months Ended June 30, 2013
|
3
|
|
Six Months Ended June 30, 2013
|
4
|
|
Condensed Consolidated Statement of Comprehensive Income
|
5
|
|
Condensed Consolidated Statement of Changes in Shareowners' Equity
|
5
|
|
Condensed Statement of Financial Position
|
6
|
|
Condensed Statement of Cash Flows
|
7
|
|
Summary of Operating Segments
|
8
|
|
Notes to Condensed, Consolidated Financial Statements (Unaudited)
|
9
|
|
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
|
61
|
|
Item 3. Quantitative and Qualitative Disclosures About Market Risk
|
87
|
|
Item 4. Controls and Procedures
|
87
|
|
Part II - Other Information
|
||
Item 1. Legal Proceedings
Item 2. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
|
88
90
|
|
Item 6. Exhibits
|
91
|
|
Signatures
|
92
|
This document contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; potential market disruptions or other impacts arising in the United States or Europe from developments in sovereign debt situations; the impact of conditions in the financial and credit markets on the availability and cost of General Electric Capital Corporation’s (GECC) funding and on our ability to reduce GECC’s asset levels as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; changes in Japanese consumer behavior that may affect our estimates of liability for excess interest refund claims (GE Money Japan); pending and future mortgage securitization claims and litigation in connection with WMC, which may affect our estimates of liability, including possible loss estimates; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the adequacy of our cash flows and earnings and other conditions, which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at planned levels; GECC’s ability to pay dividends to GE at the planned level; our ability to convert pre-order commitments into orders; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation; our capital allocation plans, as such plans may change and affect planned share repurchases and strategic actions, including acquisitions, joint ventures and dispositions; our success in completing announced transactions and integrating acquired businesses; the impact of potential information technology or data security breaches; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
GE’s Investor Relations website at www.ge.com/investor and our corporate blog at www.gereports.com, as well as GE’s Facebook page and Twitter accounts, contain a significant amount of information about GE, including financial and other information for investors. GE encourages investors to visit these websites from time to time, as information is updated and new information is posted.
|
Three months ended June 30 (Unaudited)
|
||||||||||||||||||
Consolidated
|
GE(a)
|
Financial Services (GECC)
|
||||||||||||||||
(In millions, except share amounts)
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Revenues and other income
|
||||||||||||||||||
Sales of goods
|
$
|
17,262
|
$
|
18,185
|
$
|
17,299
|
$
|
18,215
|
$
|
31
|
$
|
26
|
||||||
Sales of services
|
7,240
|
6,818
|
7,324
|
6,923
|
–
|
–
|
||||||||||||
Other income
|
104
|
393
|
2
|
409
|
–
|
–
|
||||||||||||
GECC earnings from continuing operations
|
–
|
–
|
1,922
|
2,122
|
–
|
–
|
||||||||||||
GECC revenues from services
|
10,517
|
11,001
|
–
|
–
|
10,949
|
11,328
|
||||||||||||
Total revenues and other income
|
35,123
|
36,397
|
26,547
|
27,669
|
10,980
|
11,354
|
||||||||||||
Costs and expenses
|
||||||||||||||||||
Cost of goods sold
|
13,865
|
14,797
|
13,909
|
14,831
|
25
|
23
|
||||||||||||
Cost of services sold
|
4,623
|
4,402
|
4,707
|
4,507
|
–
|
–
|
||||||||||||
Interest and other financial charges
|
2,617
|
3,202
|
326
|
351
|
2,405
|
2,979
|
||||||||||||
Investment contracts, insurance losses and
|
||||||||||||||||||
insurance annuity benefits
|
687
|
662
|
–
|
–
|
728
|
702
|
||||||||||||
Provision for losses on financing receivables
|
1,029
|
743
|
–
|
–
|
1,029
|
743
|
||||||||||||
Other costs and expenses
|
8,573
|
8,404
|
3,904
|
3,911
|
4,843
|
4,667
|
||||||||||||
Total costs and expenses
|
31,394
|
32,210
|
22,846
|
23,600
|
9,030
|
9,114
|
||||||||||||
Earnings from continuing operations
|
||||||||||||||||||
before income taxes
|
3,729
|
4,187
|
3,701
|
4,069
|
1,950
|
2,240
|
||||||||||||
Benefit (provision) for income taxes
|
(308)
|
(496)
|
(297)
|
(392)
|
(11)
|
(104)
|
||||||||||||
Earnings from continuing operations
|
3,421
|
3,691
|
3,404
|
3,677
|
1,939
|
2,136
|
||||||||||||
Earnings (loss) from discontinued operations,
|
||||||||||||||||||
net of taxes
|
(122)
|
(553)
|
(122)
|
(553)
|
(121)
|
(553)
|
||||||||||||
Net earnings
|
3,299
|
3,138
|
3,282
|
3,124
|
1,818
|
1,583
|
||||||||||||
Less net earnings (loss) attributable to
|
||||||||||||||||||
noncontrolling interests
|
166
|
33
|
149
|
19
|
17
|
14
|
||||||||||||
Net earnings attributable to the Company
|
3,133
|
3,105
|
3,133
|
3,105
|
1,801
|
1,569
|
||||||||||||
Preferred stock dividends declared
|
–
|
–
|
–
|
–
|
(135)
|
–
|
||||||||||||
Net earnings) attributable to GE common
|
||||||||||||||||||
shareowners
|
$
|
3,133
|
$
|
3,105
|
$
|
3,133
|
$
|
3,105
|
$
|
1,666
|
$
|
1,569
|
||||||
Amounts attributable to the Company
|
||||||||||||||||||
Earnings from continuing operations
|
$
|
3,255
|
$
|
3,658
|
$
|
3,255
|
$
|
3,658
|
$
|
1,922
|
$
|
2,122
|
||||||
Earnings (loss) from discontinued operations,
|
||||||||||||||||||
net of taxes
|
(122)
|
(553)
|
(122)
|
(553)
|
(121)
|
(553)
|
||||||||||||
Net earnings attributable to the Company
|
$
|
3,133
|
$
|
3,105
|
$
|
3,133
|
$
|
3,105
|
$
|
1,801
|
$
|
1,569
|
||||||
Per-share amounts
|
||||||||||||||||||
Earnings from continuing operations
|
||||||||||||||||||
Diluted earnings per share
|
$
|
0.31
|
$
|
0.34
|
||||||||||||||
Basic earnings per share
|
$
|
0.32
|
$
|
0.35
|
||||||||||||||
Net earnings
|
||||||||||||||||||
Diluted earnings per share
|
$
|
0.30
|
$
|
0.29
|
||||||||||||||
Basic earnings per share
|
$
|
0.30
|
$
|
0.29
|
||||||||||||||
Dividends declared per common share
|
$
|
0.19
|
$
|
0.17
|
||||||||||||||
(a)
|
Represents the adding together of all affiliated companies except General Electric Capital Corporation (GECC or Financial Services), which is presented on a one-line basis.
|
|
See Note 3 for other-than-temporary impairment amounts.
|
|
See accompanying notes. Separate information is shown for "GE" and "Financial Services (GECC)." Transactions between GE and GECC have been eliminated from the "Consolidated" columns.
|
Six months ended June 30 (Unaudited)
|
||||||||||||||||||
Consolidated
|
GE(a)
|
Financial Services (GECC)
|
||||||||||||||||
(In millions, except share amounts)
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Revenues and other income
|
||||||||||||||||||
Sales of goods
|
$
|
32,936
|
$
|
35,500
|
$
|
32,976
|
$
|
35,572
|
$
|
57
|
$
|
56
|
||||||
Sales of services
|
13,753
|
13,030
|
13,950
|
13,253
|
–
|
–
|
||||||||||||
Other income
|
1,719
|
950
|
1,622
|
1,009
|
–
|
–
|
||||||||||||
GECC earnings from continuing operations
|
–
|
–
|
3,849
|
3,894
|
–
|
–
|
||||||||||||
GECC revenues from services
|
21,725
|
21,997
|
–
|
–
|
22,458
|
22,638
|
||||||||||||
Total revenues and other income
|
70,133
|
71,477
|
52,397
|
53,728
|
22,515
|
22,694
|
||||||||||||
Costs and expenses
|
||||||||||||||||||
Cost of goods sold
|
26,732
|
28,262
|
26,783
|
28,343
|
46
|
48
|
||||||||||||
Cost of services sold
|
9,072
|
8,806
|
9,269
|
9,029
|
–
|
–
|
||||||||||||
Interest and other financial charges
|
5,238
|
6,549
|
650
|
666
|
4,805
|
6,164
|
||||||||||||
Investment contracts, insurance losses and
|
||||||||||||||||||
insurance annuity benefits
|
1,350
|
1,399
|
–
|
–
|
1,417
|
1,473
|
||||||||||||
Provision for losses on financing receivables
|
2,517
|
1,606
|
–
|
–
|
2,517
|
1,606
|
||||||||||||
Other costs and expenses
|
17,369
|
16,734
|
7,961
|
7,914
|
9,760
|
9,164
|
||||||||||||
Total costs and expenses
|
62,278
|
63,356
|
44,663
|
45,952
|
18,545
|
18,455
|
||||||||||||
Earnings from continuing operations
|
||||||||||||||||||
before income taxes
|
7,855
|
8,121
|
7,734
|
7,776
|
3,970
|
4,239
|
||||||||||||
Benefit (provision) for income taxes
|
(814)
|
(1,161)
|
(721)
|
(842)
|
(93)
|
(319)
|
||||||||||||
Earnings from continuing operations
|
7,041
|
6,960
|
7,013
|
6,934
|
3,877
|
3,920
|
||||||||||||
Earnings (loss) from discontinued operations,
|
||||||||||||||||||
net of taxes
|
(231)
|
(750)
|
(231)
|
(750)
|
(230)
|
(750)
|
||||||||||||
Net earnings
|
6,810
|
6,210
|
6,782
|
6,184
|
3,647
|
3,170
|
||||||||||||
Less net earnings (loss) attributable to
|
||||||||||||||||||
noncontrolling interests
|
150
|
71
|
122
|
45
|
28
|
26
|
||||||||||||
Net earnings attributable to the Company
|
6,660
|
6,139
|
6,660
|
6,139
|
3,619
|
3,144
|
||||||||||||
Preferred stock dividends declared
|
–
|
–
|
–
|
–
|
(135)
|
–
|
||||||||||||
Net earnings (loss) attributable to GE common
|
||||||||||||||||||
shareowners
|
$
|
6,660
|
$
|
6,139
|
$
|
6,660
|
$
|
6,139
|
$
|
3,484
|
$
|
3,144
|
||||||
Amounts attributable to the Company
|
||||||||||||||||||
Earnings from continuing operations
|
$
|
6,891
|
$
|
6,889
|
$
|
6,891
|
$
|
6,889
|
$
|
3,849
|
$
|
3,894
|
||||||
Earnings (loss) from discontinued operations,
|
||||||||||||||||||
net of taxes
|
(231)
|
(750)
|
(231)
|
(750)
|
(230)
|
(750)
|
||||||||||||
Net earnings attributable to the Company
|
$
|
6,660
|
$
|
6,139
|
$
|
6,660
|
$
|
6,139
|
$
|
3,619
|
$
|
3,144
|
||||||
Per-share amounts
|
||||||||||||||||||
Earnings from continuing operations
|
||||||||||||||||||
Diluted earnings per share
|
$
|
0.66
|
$
|
0.65
|
||||||||||||||
Basic earnings per share
|
$
|
0.67
|
$
|
0.65
|
||||||||||||||
Net earnings
|
||||||||||||||||||
Diluted earnings per share
|
$
|
0.64
|
$
|
0.58
|
||||||||||||||
Basic earnings per share
|
$
|
0.65
|
$
|
0.58
|
||||||||||||||
Dividends declared per common share
|
$
|
0.38
|
$
|
0.34
|
||||||||||||||
(a)
|
Represents the adding together of all affiliated companies except General Electric Capital Corporation (GECC or Financial Services), which is presented on a one-line basis.
|
General Electric Company and consolidated affiliates
|
||||||||||||
Condensed, Consolidated Statement of Comprehensive Income
|
||||||||||||
Three months ended June 30 (Unaudited)
|
Six months ended June 30 (Unaudited)
|
|||||||||||
(In millions)
|
2013
|
2012
|
2013
|
2012
|
||||||||
Net earnings
|
$
|
3,299
|
$
|
3,138
|
$
|
6,810
|
$
|
6,210
|
||||
Less: net earnings (loss) attributable to
|
||||||||||||
noncontrolling interests
|
166
|
33
|
150
|
71
|
||||||||
Net earnings attributable to GE
|
$
|
3,133
|
$
|
3,105
|
$
|
6,660
|
$
|
6,139
|
||||
Other comprehensive income (loss)
|
||||||||||||
Investment securities
|
$
|
(600)
|
$
|
165
|
$
|
(532)
|
$
|
498
|
||||
Currency translation adjustments
|
373
|
(1,344)
|
(86)
|
(990)
|
||||||||
Cash flow hedges
|
191
|
21
|
293
|
145
|
||||||||
Benefit plans
|
1,208
|
558
|
2,061
|
1,596
|
||||||||
Other comprehensive income (loss)
|
1,172
|
(600)
|
1,736
|
1,249
|
||||||||
Less: other comprehensive income (loss) attributable to
|
||||||||||||
noncontrolling interests
|
(29)
|
(10)
|
(31)
|
(2)
|
||||||||
Other comprehensive income (loss) attributable to GE
|
$
|
1,201
|
$
|
(590)
|
$
|
1,767
|
$
|
1,251
|
||||
Comprehensive income
|
$
|
4,471
|
$
|
2,538
|
$
|
8,546
|
$
|
7,459
|
||||
Less: comprehensive income (loss) attributable to
|
||||||||||||
noncontrolling interests
|
137
|
23
|
119
|
69
|
||||||||
Comprehensive income attributable to GE
|
$
|
4,334
|
$
|
2,515
|
$
|
8,427
|
$
|
7,390
|
||||
General Electric Company and consolidated affiliates
|
|||||
Condensed, Consolidated Statement of Changes in Shareowners' Equity
|
|||||
Six months ended June 30 (Unaudited)
|
|||||
(In millions)
|
2013
|
2012
|
|||
GE shareowners' equity balance at January 1
|
$
|
123,026
|
$
|
116,438
|
|
Increases from net earnings attributable to GE
|
6,660
|
6,139
|
|||
Dividends and other transactions with shareowners
|
(3,915)
|
(3,601)
|
|||
Other comprehensive income (loss) attributable to GE
|
1,767
|
1,251
|
|||
Net sales (purchases) of shares for treasury
|
(4,931)
|
87
|
|||
Changes in other capital
|
(98)
|
(195)
|
|||
Ending balance at June 30
|
122,509
|
120,119
|
|||
Noncontrolling interests
|
6,302
|
3,780
|
|||
Total equity balance at June 30
|
$
|
128,811
|
$
|
123,899
|
|
See Note 12 for further information about changes changes in shareowners’ equity.
See accompanying notes.
|
|
Consolidated
|
GE(a)
|
Financial Services (GECC)
|
||||||||||||||||
June 30,
|
December 31,
|
June 30,
|
December 31,
|
June 30,
|
December 31,
|
|||||||||||||
(In millions, except share amounts)
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||||
Assets
|
||||||||||||||||||
Cash and equivalents
|
$
|
88,711
|
$
|
77,357
|
$
|
19,194
|
$
|
15,509
|
$
|
69,531
|
$
|
61,942
|
||||||
Investment securities
|
43,748
|
48,510
|
90
|
74
|
43,661
|
48,439
|
||||||||||||
Current receivables
|
20,181
|
19,902
|
10,509
|
9,274
|
–
|
–
|
||||||||||||
Inventories
|
16,762
|
15,374
|
16,674
|
15,295
|
88
|
79
|
||||||||||||
Financing receivables – net
|
246,942
|
258,028
|
–
|
–
|
257,092
|
268,951
|
||||||||||||
Other GECC receivables
|
9,381
|
7,890
|
–
|
–
|
15,710
|
13,917
|
||||||||||||
Property, plant and equipment – net
|
68,762
|
69,044
|
16,109
|
16,033
|
52,608
|
52,974
|
||||||||||||
Investment in GECC
|
–
|
–
|
79,261
|
77,930
|
–
|
–
|
||||||||||||
Goodwill
|
73,088
|
73,175
|
46,270
|
46,143
|
26,818
|
27,032
|
||||||||||||
Other intangible assets – net
|
11,596
|
11,987
|
10,399
|
10,700
|
1,203
|
1,294
|
||||||||||||
All other assets
|
74,214
|
101,659
|
22,108
|
39,534
|
52,382
|
62,201
|
||||||||||||
Deferred income taxes
|
5,013
|
(42)
|
10,601
|
5,946
|
(5,588)
|
(5,988)
|
||||||||||||
Assets of businesses held for sale
|
288
|
211
|
123
|
–
|
165
|
211
|
||||||||||||
Assets of discontinued operations
|
1,855
|
2,308
|
9
|
9
|
1,846
|
2,299
|
||||||||||||
Total assets(b)
|
$
|
660,541
|
$
|
685,403
|
$
|
231,347
|
$
|
236,447
|
$
|
515,516
|
$
|
533,351
|
||||||
Liabilities and equity
|
||||||||||||||||||
Short-term borrowings
|
$
|
77,184
|
$
|
101,392
|
$
|
1,182
|
$
|
6,041
|
$
|
76,770
|
$
|
95,940
|
||||||
Accounts payable, principally trade accounts
|
16,237
|
15,657
|
14,716
|
14,259
|
7,093
|
6,259
|
||||||||||||
Progress collections and price adjustments accrued
|
12,435
|
10,877
|
12,435
|
10,877
|
–
|
–
|
||||||||||||
Dividends payable
|
1,939
|
1,980
|
1,939
|
1,980
|
–
|
–
|
||||||||||||
Other GE current liabilities
|
14,393
|
14,895
|
14,394
|
14,896
|
–
|
–
|
||||||||||||
Non-recourse borrowings of consolidated
|
||||||||||||||||||
securitization entities
|
30,250
|
30,123
|
–
|
–
|
30,250
|
30,123
|
||||||||||||
Bank deposits
|
48,597
|
46,461
|
–
|
–
|
48,597
|
46,461
|
||||||||||||
Long-term borrowings
|
231,285
|
236,084
|
11,401
|
11,428
|
220,007
|
224,776
|
||||||||||||
Investment contracts, insurance liabilities
|
||||||||||||||||||
and insurance annuity benefits
|
27,074
|
28,268
|
–
|
–
|
27,615
|
28,696
|
||||||||||||
All other liabilities
|
69,853
|
68,588
|
51,872
|
53,093
|
18,037
|
15,961
|
||||||||||||
Liabilities of businesses held for sale
|
35
|
157
|
28
|
–
|
7
|
157
|
||||||||||||
Liabilities of discontinued operations
|
2,448
|
2,451
|
69
|
70
|
2,379
|
2,381
|
||||||||||||
Total liabilities(b)
|
531,730
|
556,933
|
108,036
|
112,644
|
430,755
|
450,754
|
||||||||||||
GECC preferred stock (50,000 and 40,000 shares
|
||||||||||||||||||
outstanding at June 30, 2013 and
|
||||||||||||||||||
December 31, 2012, respectively.)
|
–
|
–
|
–
|
–
|
–
|
–
|
||||||||||||
Common stock (10,183,781,000 and 10,405,625,000
|
||||||||||||||||||
shares outstanding at June 30, 2013 and
|
||||||||||||||||||
December 31, 2012, respectively)
|
702
|
702
|
702
|
702
|
–
|
–
|
||||||||||||
Accumulated other comprehensive income (loss) – net(c)
|
||||||||||||||||||
Investment securities
|
146
|
677
|
146
|
677
|
138
|
673
|
||||||||||||
Currency translation adjustments
|
358
|
412
|
358
|
412
|
(102)
|
(131)
|
||||||||||||
Cash flow hedges
|
(430)
|
(722)
|
(430)
|
(722)
|
(461)
|
(746)
|
||||||||||||
Benefit plans
|
(18,537)
|
(20,597)
|
(18,537)
|
(20,597)
|
(714)
|
(736)
|
||||||||||||
Other capital
|
32,972
|
33,070
|
32,972
|
33,070
|
32,569
|
31,586
|
||||||||||||
Retained earnings
|
146,800
|
144,055
|
146,800
|
144,055
|
52,781
|
51,244
|
||||||||||||
Less common stock held in treasury
|
(39,502)
|
(34,571)
|
(39,502)
|
(34,571)
|
–
|
–
|
||||||||||||
Total GE shareowners’ equity
|
122,509
|
123,026
|
122,509
|
123,026
|
84,211
|
81,890
|
||||||||||||
Noncontrolling interests(d)
|
6,302
|
5,444
|
802
|
777
|
550
|
707
|
||||||||||||
Total equity
|
128,811
|
128,470
|
123,311
|
123,803
|
84,761
|
82,597
|
||||||||||||
Total liabilities and equity
|
$
|
660,541
|
$
|
685,403
|
$
|
231,347
|
$
|
236,447
|
$
|
515,516
|
$
|
533,351
|
||||||
(a)
|
Represents the adding together of all affiliated companies except General Electric Capital Corporation (GECC or Financial Services), which is presented on a one-line basis.
|
(b)
|
Our consolidated assets at June 30, 2013 include total assets of $46,913 million of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs. These assets include net financing receivables of $40,048 million and investment securities of $4,334 million. Our consolidated liabilities at June 30, 2013 include liabilities of certain VIEs for which the VIE creditors do not have recourse to GE. These liabilities include non-recourse borrowings of consolidated securitization entities (CSEs) of $28,600 million. See Note 18.
|
(c)
|
The sum of accumulated other comprehensive income (loss) attributable to GE was $(18,463) million and $(20,230) million at June 30, 2013 and December 31, 2012, respectively.
|
(d)
|
Included accumulated other comprehensive income (loss) attributable to noncontrolling interests of $(186) million and $(155) million at June 30, 2013 and December 31, 2012, respectively.
|
Six months ended June 30 (Unaudited)
|
||||||||||||||||||
Consolidated
|
GE(a)
|
Financial Services (GECC)
|
||||||||||||||||
(In millions)
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Cash flows – operating activities
|
||||||||||||||||||
Net earnings
|
$
|
6,810
|
$
|
6,210
|
$
|
6,782
|
$
|
6,184
|
$
|
3,647
|
$
|
3,170
|
||||||
Less net earnings (loss) attributable to noncontrolling
interests
|
150
|
71
|
122
|
45
|
28
|
26
|
||||||||||||
Net earnings attributable to the Company
|
6,660
|
6,139
|
6,660
|
6,139
|
3,619
|
3,144
|
||||||||||||
(Earnings) loss from discontinued operations
|
231
|
750
|
231
|
750
|
230
|
750
|
||||||||||||
Adjustments to reconcile net earnings attributable to the
|
||||||||||||||||||
Company to cash provided from operating activities
|
||||||||||||||||||
Depreciation and amortization of property,
|
||||||||||||||||||
plant and equipment
|
4,577
|
4,412
|
1,172
|
1,124
|
3,405
|
3,288
|
||||||||||||
Earnings from continuing operations retained by GECC(b)
|
–
|
–
|
(1,902)
|
(894)
|
–
|
–
|
||||||||||||
Deferred income taxes
|
(1,779)
|
(193)
|
(2,337)
|
(547)
|
558
|
354
|
||||||||||||
Decrease (increase) in GE current receivables
|
223
|
118
|
(1,234)
|
406
|
–
|
–
|
||||||||||||
Decrease (increase) in inventories
|
(1,452)
|
(1,645)
|
(1,414)
|
(1,615)
|
(9)
|
(9)
|
||||||||||||
Increase (decrease) in accounts payable
|
870
|
856
|
448
|
698
|
648
|
185
|
||||||||||||
Increase (decrease) in GE progress collections
|
1,695
|
(316)
|
1,695
|
(316)
|
–
|
–
|
||||||||||||
Provision for losses on GECC financing receivables
|
2,517
|
1,606
|
–
|
–
|
2,517
|
1,606
|
||||||||||||
All other operating activities
|
(1,426)
|
2,457
|
378
|
1,044
|
(2,191)
|
1,428
|
||||||||||||
Cash from (used for) operating activities – continuing
|
||||||||||||||||||
operations
|
12,116
|
14,184
|
3,697
|
6,789
|
8,777
|
10,746
|
||||||||||||
Cash from (used for) operating activities – discontinued
|
||||||||||||||||||
operations
|
(185)
|
33
|
(2)
|
–
|
(183)
|
33
|
||||||||||||
Cash from (used for) operating activities
|
11,931
|
14,217
|
3,695
|
6,789
|
8,594
|
10,779
|
||||||||||||
Cash flows – investing activities
|
||||||||||||||||||
Additions to property, plant and equipment
|
(7,218)
|
(7,298)
|
(1,832)
|
(2,020)
|
(5,481)
|
(5,505)
|
||||||||||||
Dispositions of property, plant and equipment
|
2,560
|
2,717
|
–
|
–
|
2,560
|
2,717
|
||||||||||||
Net decrease (increase) in GECC financing receivables
|
5,500
|
5,924
|
–
|
–
|
6,854
|
5,798
|
||||||||||||
Proceeds from principal business dispositions
|
1,013
|
117
|
260
|
29
|
753
|
88
|
||||||||||||
Proceeds from sale of equity interest in NBCU LLC
|
16,699
|
–
|
16,699
|
–
|
–
|
–
|
||||||||||||
Net cash from (payments for) principal businesses purchased
|
6,187
|
(394)
|
(197)
|
(394)
|
6,384
|
–
|
||||||||||||
All other investing activities
|
12,041
|
3,613
|
(351)
|
37
|
12,257
|
3,857
|
||||||||||||
Cash from (used for) investing activities – continuing
|
||||||||||||||||||
operations
|
36,782
|
4,679
|
14,579
|
(2,348)
|
23,327
|
6,955
|
||||||||||||
Cash from (used for) investing activities – discontinued
|
||||||||||||||||||
operations
|
163
|
(41)
|
2
|
–
|
161
|
(41)
|
||||||||||||
Cash from (used for) investing activities
|
36,945
|
4,638
|
14,581
|
(2,348)
|
23,488
|
6,914
|
||||||||||||
Cash flows – financing activities
|
||||||||||||||||||
Net increase (decrease) in borrowings (maturities of
|
||||||||||||||||||
90 days or less)
|
(7,168)
|
(731)
|
28
|
(143)
|
(6,815)
|
(621)
|
||||||||||||
Net increase (decrease) in bank deposits
|
(4,506)
|
(890)
|
–
|
–
|
(4,506)
|
(890)
|
||||||||||||
Newly issued debt (maturities longer than 90 days)
|
30,484
|
30,053
|
38
|
167
|
30,450
|
29,658
|
||||||||||||
Repayments and other reductions (maturities longer
|
||||||||||||||||||
than 90 days)
|
(46,621)
|
(52,868)
|
(5,032)
|
(24)
|
(41,589)
|
(52,844)
|
||||||||||||
Proceeds from issuance of GECC preferred stock
|
990
|
2,227
|
–
|
–
|
990
|
2,227
|
||||||||||||
Net dispositions (purchases) of GE shares for treasury
|
(5,600)
|
(505)
|
(5,600)
|
(505)
|
–
|
–
|
||||||||||||
Dividends paid to shareowners
|
(3,955)
|
(3,601)
|
(3,955)
|
(3,601)
|
(2,082)
|
(3,000)
|
||||||||||||
All other financing activities
|
(457)
|
(2,416)
|
(17)
|
(62)
|
(305)
|
(2,354)
|
||||||||||||
Cash from (used for) financing activities – continuing
|
||||||||||||||||||
operations
|
(36,833)
|
(28,731)
|
(14,538)
|
(4,168)
|
(23,857)
|
(27,824)
|
||||||||||||
Cash from (used for) financing activities – discontinued
|
||||||||||||||||||
operations
|
15
|
–
|
–
|
–
|
15
|
–
|
||||||||||||
Cash from (used for) financing activities
|
(36,818)
|
(28,731)
|
(14,538)
|
(4,168)
|
(23,842)
|
(27,824)
|
||||||||||||
Effect of currency exchange rate changes on cash
|
||||||||||||||||||
and equivalents
|
(711)
|
(338)
|
(53)
|
(11)
|
(658)
|
(327)
|
||||||||||||
Increase (decrease) in cash and equivalents
|
11,347
|
(10,214)
|
3,685
|
262
|
7,582
|
(10,458)
|
||||||||||||
Cash and equivalents at beginning of year
|
77,459
|
84,622
|
15,509
|
8,382
|
62,044
|
76,823
|
||||||||||||
Cash and equivalents at June 30
|
88,806
|
74,408
|
19,194
|
8,644
|
69,626
|
66,365
|
||||||||||||
Less cash and equivalents of discontinued operations
|
||||||||||||||||||
at June 30
|
95
|
112
|
–
|
–
|
95
|
112
|
||||||||||||
Cash and equivalents of continuing operations
|
||||||||||||||||||
at June 30
|
$
|
88,711
|
$
|
74,296
|
$
|
19,194
|
$
|
8,644
|
$
|
69,531
|
$
|
66,253
|
||||||
(a)
|
Represents the adding together of all affiliated companies except General Electric Capital Corporation (GECC or Financial Services), which is presented on a one-line basis.
|
(b)
|
Represents GECC earnings from continuing operations attributable to the Company, net of GECC dividends paid to GE.
|
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(Unaudited)
|
(Unaudited)
|
||||||||||
(In millions)
|
2013
|
2012
|
2013
|
2012
|
|||||||
Revenues(a)
|
|||||||||||
Power & Water
|
$
|
5,715
|
$
|
6,900
|
$
|
10,540
|
$
|
13,451
|
|||
Oil & Gas
|
3,955
|
3,642
|
7,354
|
7,048
|
|||||||
Energy Management
|
1,981
|
1,877
|
3,729
|
3,599
|
|||||||
Aviation
|
5,303
|
4,855
|
10,377
|
9,746
|
|||||||
Healthcare
|
4,490
|
4,500
|
8,779
|
8,800
|
|||||||
Transportation
|
1,597
|
1,565
|
3,019
|
2,835
|
|||||||
Home & Business Solutions
|
2,127
|
2,029
|
4,044
|
3,944
|
|||||||
Total industrial segment revenues
|
25,168
|
25,368
|
47,842
|
49,423
|
|||||||
GE Capital
|
10,980
|
11,354
|
22,515
|
22,694
|
|||||||
Total segment revenues
|
36,148
|
36,722
|
70,357
|
72,117
|
|||||||
Corporate items and eliminations(a)
|
(1,025)
|
(325)
|
(224)
|
(640)
|
|||||||
Consolidated revenues and other income
|
$
|
35,123
|
$
|
36,397
|
$
|
70,133
|
$
|
71,477
|
|||
Segment profit(a)
|
|||||||||||
Power & Water
|
$
|
1,087
|
$
|
1,303
|
$
|
1,806
|
$
|
2,491
|
|||
Oil & Gas
|
532
|
466
|
857
|
806
|
|||||||
Energy Management
|
31
|
4
|
46
|
25
|
|||||||
Aviation
|
1,067
|
922
|
2,003
|
1,784
|
|||||||
Healthcare
|
726
|
694
|
1,321
|
1,279
|
|||||||
Transportation
|
313
|
282
|
580
|
514
|
|||||||
Home & Business Solutions
|
83
|
79
|
162
|
136
|
|||||||
Total industrial segment profit
|
3,839
|
3,750
|
6,775
|
7,035
|
|||||||
GE Capital
|
1,922
|
2,122
|
3,849
|
3,894
|
|||||||
Total segment profit
|
5,761
|
5,872
|
10,624
|
10,929
|
|||||||
Corporate items and eliminations(a)
|
(1,883)
|
(1,471)
|
(2,362)
|
(2,532)
|
|||||||
GE interest and other financial charges
|
(326)
|
(351)
|
(650)
|
(666)
|
|||||||
GE provision for income taxes
|
(297)
|
(392)
|
(721)
|
(842)
|
|||||||
Earnings from continuing operations attributable
|
|||||||||||
to the Company
|
3,255
|
3,658
|
6,891
|
6,889
|
|||||||
Earnings (loss) from discontinued operations,
|
|||||||||||
net of taxes, attributable to the Company
|
(122)
|
(553)
|
(231)
|
(750)
|
|||||||
Consolidated net earnings attributable to
|
|||||||||||
the Company
|
$
|
3,133
|
$
|
3,105
|
$
|
6,660
|
$
|
6,139
|
|||
(a)
|
Segment revenues includes both revenues and other income related to the segment. Segment profit excludes results reported as discontinued operations, earnings attributable to noncontrolling interests of consolidated subsidiaries, GECC preferred stock dividends declared 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 Home & Business Solutions; included in determining segment profit, which we sometimes refer to as “net earnings,” for GE Capital.
|
|
See accompanying notes.
|
At
|
|||||
June 30,
|
December 31,
|
||||
(In millions)
|
2013
|
2012
|
|||
|
|||||
Assets
|
|
||||
Cash and equivalents
|
$
|
16
|
$
|
74
|
|
Financing receivables – net
|
109
|
47
|
|||
Property, plant and equipment – net
|
13
|
31
|
|||
Other intangible assets – net
|
29
|
9
|
|||
Other
|
121
|
50
|
|||
Assets of businesses held for sale
|
$
|
288
|
$
|
211
|
|
Liabilities
|
|||||
Short-term borrowings
|
$
|
–
|
$
|
138
|
|
Other
|
35
|
19
|
|||
Liabilities of businesses held for sale
|
$
|
35
|
$
|
157
|
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2013
|
2012
|
2013
|
2012
|
|||||||
Operations
|
|||||||||||
Total revenues and other income (loss)
|
$
|
43
|
$
|
(244)
|
$
|
30
|
$
|
(143)
|
|||
Earnings (loss) from discontinued operations
|
|||||||||||
before income taxes
|
$
|
(31)
|
$
|
(382)
|
$
|
(159)
|
$
|
(448)
|
|||
Benefit (provision) for income taxes
|
21
|
123
|
142
|
157
|
|||||||
Earnings (loss) from discontinued operations,
|
|||||||||||
net of taxes
|
$
|
(10)
|
$
|
(259)
|
$
|
(17)
|
$
|
(291)
|
|||
Disposal
|
|||||||||||
Gain (loss) on disposal before income taxes
|
$
|
(95)
|
$
|
(308)
|
$
|
(282)
|
$
|
(502)
|
|||
Benefit (provision) for income taxes
|
(17)
|
14
|
68
|
43
|
|||||||
Gain (loss) on disposal, net of taxes
|
$
|
(112)
|
$
|
(294)
|
$
|
(214)
|
$
|
(459)
|
|||
Earnings (loss) from discontinued operations,
|
|||||||||||
net of taxes(a)
|
$
|
(122)
|
$
|
(553)
|
$
|
(231)
|
$
|
(750)
|
|||
(a)
|
The sum of GE industrial earnings (loss) from discontinued operations, net of taxes, and GECC earnings (loss) from discontinued operations, net of taxes, is reported as GE earnings (loss) from discontinued operations, net of taxes, on the Condensed Statement of Earnings.
|