Exhibit 99(b)
Revised Segment Results, with Annual Results for the Five Years Ended December 31, 2004, and Quarterly Results for the Six Quarters Ended June 30, 2005 (Pages 1-8)
Exhibit 99(b)
Revised Segment Results, with Annual Results for the Five Years Ended December 31, 2004, and Quarterly Results for the Six Quarters Ended June 30, 2005 (Pages 1-8)
Segment Operations
Revenues and segment profit of our operating segments are shown below. As described in our Form 8-K filed June 23, 2005, we reorganized our businesses on July 5, 2005, around markets and customers. We believe this organization will help us accelerate growth, improve productivity and retain, as well as grow, the best management talent.
Our six reporting segments as of July 5, 2005, were as follows:
• | Commercial Financial Services - the combination of our previous Commercial Finance (excluding Aviation Services, Energy Financial Services and Transportation Finance) and Insurance segments and GE Equity, previously reported in the Equipment & Other Services segment |
• | Consumer Finance - unchanged |
• | Industrial - the combination of our previous Consumer & Industrial and Advanced Materials segments, the security, sensing and Fanuc Automation businesses of our previous Infrastructure segment, the inspection technology business of our previous Transportation segment and Equipment Services, previously reported in the Equipment & Other Services segment |
• | Infrastructure - the combination of our previous Energy and Transportation segments, the water business of our previous Infrastructure segment, and Aviation Services, Energy Financial Services and Transportation Finance of our previous Commercial Finance segment |
• | NBC Universal - unchanged |
Segment profit is determined based on internal performance measures used by the Chief Executive Officer to assess the performance of each business in a given period. In connection with that assessment, the Chief Executive Officer may exclude matters such as charges for restructuring; rationalization and other similar expenses; in-process research and development and certain other acquisition-related charges; certain gains and losses from dispositions; and litigation settlements or other charges, responsibility for which precedes the current management team.
Segment profit always excludes the effects of principal pension plans 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 refer to as “operating profit,” for Healthcare, NBC Universal and the industrial businesses of the Industrial and Infrastructure segments; included in determining segment profit, which we refer to as “net earnings,” for Commercial Financial Services, Consumer Finance, and the financial services businesses of the Industrial and Infrastructure segments.
All periods presented have been reclassified to conform to the changes in our organization effective July 5, 2005. In addition to providing information on segments in their entirety, we have also provided supplemental information for certain businesses within the segments for greater clarity.
Consolidated
| For the years ended December 31 (In millions) | 2004 | | 2003 | | 2002 | | 2001 | | 2000 | |
| | | | | | | | | | | | | | | | |
Revenues | | | | | | | | | | | | | | | |
Commercial Financial Services | $ | 42,594 | | $ | 43,121 | | $ | 38,984 | | $ | 38,498 | | $ | 40,905 | |
Consumer Finance | | 15,734 | | | 12,845 | | | 10,266 | | | 9,508 | | | 9,320 | |
Healthcare | | 13,456 | | | 10,198 | | | 8,955 | | | 8,409 | | | 7,275 | |
Industrial | | 30,722 | | | 24,988 | | | 26,154 | | | 26,101 | | | 29,541 | |
Infrastructure | | 37,373 | | | 36,569 | | | 40,119 | | | 36,419 | | | 30,133 | |
NBC Universal | | 12,886 | | | 6,871 | | | 7,149 | | | 5,769 | | | 6,797 | |
Corporate items and eliminations | | 101 | | | 49 | | | 599 | | | 1,669 | | | 6,414 | |
| Consolidated revenues | $ | 152,866 | | $ | 134,641 | | $ | 132,226 | | $ | 126,373 | | $ | 130,385 | |
| | | | | | | | | | | | | | | | |
Segment profit | | | | | | | | | | | | | | | |
Commercial Financial Services | $ | 4,139 | | $ | 5,009 | | $ | 2,075 | | $ | 3,663 | | $ | 4,604 | |
Consumer Finance | | 2,520 | | | 2,161 | | | 1,799 | | | 1,602 | | | 1,295 | |
Healthcare | | 2,286 | | | 1,701 | | | 1,546 | | | 1,498 | | | 1,321 | |
Industrial | | 1,833 | | | 1,385 | | | 1,837 | | | 2,642 | | | 3,251 | |
Infrastructure | | 6,797 | | | 7,362 | | | 9,178 | | | 7,869 | | | 5,545 | |
NBC Universal | | 2,558 | | | 1,998 | | | 1,658 | | | 1,408 | | | 1,609 | |
Total segment profit | | 20,133 | | | 19,616 | | | 18,093 | | | 18,682 | | | 17,625 | |
| GECS goodwill amortization | | - | | | - | | | - | | | (552 | ) | | (620 | ) |
| Corporate items and eliminations | | (362 | ) | | 5 | | | 1,495 | | | 958 | | | 340 | |
| GE interest and other financial charges | | (979 | ) | | (941 | ) | | (569 | ) | | (817 | ) | | (811 | ) |
| GE provision for income taxes | | (1,973 | ) | | (2,857 | ) | | (3,837 | ) | | (4,193 | ) | | (3,799 | ) |
| Earnings before accounting changes | | 16,819 | | | 15,823 | | | 15,182 | | | 14,078 | | | 12,735 | |
| Cumulative effect of accounting changes | | - | | | (587 | ) | | (1,015 | ) | | (287 | ) | | - | |
| Consolidated net earnings | $ | 16,819 | | $ | 15,236 | | $ | 14,167 | | $ | 13,791 | | $ | 12,735 | |
Consolidated
| | 2005 | |
| (In millions) | First quarter | | Second quarter | | Six months | |
| | | | | | | | | | |
Revenues | | | | | | | | | |
| Commercial Financial Services | $ | 11,405 | | $ | 10,936 | | $ | 22,341 | |
| Consumer Finance | | 4,689 | | | 4,928 | | | 9,617 | |
| Healthcare | | 3,321 | | | 3,768 | | | 7,089 | |
| Industrial | | 7,668 | | | 8,253 | | | 15,921 | |
| Infrastructure | | 9,374 | | | 10,221 | | | 19,595 | |
| NBC Universal | | 3,601 | | | 3,858 | | | 7,459 | |
| Corporate items and eliminations | | (332 | ) | | (408 | ) | | (740 | ) |
Consolidated revenues | $ | 39,726 | | $ | 41,556 | | $ | 81,282 | |
| | | | | | | | | | |
Segment Profit | | | | | | | | | |
| Commercial Financial Services | $ | 1,309 | | $ | 1,156 | | $ | 2,465 | |
| Consumer Finance | | 735 | | | 735 | | | 1,470 | |
| Healthcare | | 409 | | | 672 | | | 1,081 | |
| Industrial | | 526 | | | 635 | | | 1,161 | |
| Infrastructure | | 1,540 | | | 1,916 | | | 3,456 | |
| NBC Universal | | 709 | | | 979 | | | 1,688 | |
Total segment profit | | 5,228 | | | 6,093 | | | 11,321 | |
| Corporate items and eliminations | | (303 | ) | | (327 | ) | | (630 | ) |
| GE interest and other financial charges | | (381 | ) | | (336 | ) | | (717 | ) |
| GE provision for income taxes | | (579 | ) | | (783 | ) | | (1,362 | ) |
| Consolidated net earnings | $ | 3,965 | | $ | 4,647 | | $ | 8,612 | |
Commercial Financial Services
| | 2005 | |
| (In millions) | First quarter | | Second quarter | | Six months | |
| | | | | | | | | | |
Revenues | $ | 11,405 | | $ | 10,936 | | $ | 22,341 | |
| | | | | | | | | | |
Net revenues | | | | | | | | | |
| Total revenues | $ | 11,405 | | $ | 10,936 | | $ | 22,341 | |
| Interest expense | | 1,529 | | | 1,598 | | | 3,127 | |
| Total net revenues | $ | 9,876 | | $ | 9,338 | | $ | 19,214 | |
| | | | | | | | | | |
Segment profit | $ | 1,309 | | $ | 1,156 | | $ | 2,465 | |
| Quarters ended (In millions) | First quarter | | Second quarter | | | |
| | | | | | | | | | |
Total assets | $ | 365,559 | | $ | 360,771 | | | | |
| | 2005 | |
| (In millions) | First quarter | | Second quarter | | Six months | |
| | | | | | | | | | |
Revenues | | | | | | | | | |
Capital Solutions | $ | 2,889 | | $ | 2,856 | | $ | 5,745 | |
Insurance | | 6,333 | | | 6,007 | | | 12,340 | |
Real Estate | | 898 | | | 744 | | | 1,642 | |
| | | | | | | | | | |
Segment profit | | | | | | | | | |
Capital Solutions | $ | 286 | | $ | 325 | | $ | 611 | |
Insurance | | 383 | | | 284 | | | 667 | |
Real Estate | | 310 | | | 240 | | | 550 | |
| Quarters ended (In millions) | First quarter | | Second quarter | | | |
| | | | | | | | | | |
Total assets | | | | | | | | | |
Capital Solutions | $ | 86,230 | | $ | 85,069 | | | | |
Insurance | | 177,933 | | | 175,107 | | | | |
Real Estate | | 36,299 | | | 35,619 | | | | |
Industrial
| | 2005 | |
| (In millions) | First quarter | | Second quarter | | Six months | |
| | | | | | | | | | |
Revenues | $ | 7,668 | | $ | 8,253 | | $ | 15,921 | |
| | | | | | | | | | |
Segment profit | $ | 526 | | $ | 635 | | $ | 1,161 | |
| | | | | | | | | | |
Revenues | | | | | | | | | |
Consumer & Industrial | $ | 3,261 | | $ | 3,576 | | $ | 6,837 | |
Equipment Services | | 1,574 | | | 1,652 | | | 3,226 | |
Plastics | | 1,648 | | | 1,640 | | | 3,288 | |
| | | | | | | | | | |
Segment profit | | | | | | | | | |
Consumer & Industrial | $ | 165 | | $ | 227 | | $ | 392 | |
Equipment Services | | 10 | | | 36 | | | 46 | |
Plastics | | 240 | | | 208 | | | 448 | |
Infrastructure
| | 2005 | |
| (In millions) | First quarter | | Second quarter | | Six months | |
| | | | | | | | | | |
Revenues | $ | 9,374 | | $ | 10,221 | | $ | 19,595 | |
| | | | | | | | | | |
Segment profit | $ | 1,540 | | $ | 1,916 | | $ | 3,456 | |
| | | | | | | | | | |
Revenues | | | | | | | | | |
Aircraft Engines | $ | 2,590 | | $ | 2,971 | | $ | 5,561 | |
Aviation Services | | 817 | | | 819 | | | 1,636 | |
Energy | | 3,951 | | | 3,884 | | | 7,835 | |
Energy Financial Services | | 228 | | | 382 | | | 610 | |
Oil & Gas | | 641 | | | 763 | | | 1,404 | |
Rail | | 756 | | | 892 | | | 1,648 | |
| | | | | | | | | | |
Segment profit | | | | | | | | | |
Aircraft Engines | $ | 527 | | $ | 690 | | $ | 1,217 | |
Aviation Services | | 163 | | | 185 | | | 348 | |
Energy | | 577 | | | 625 | | | 1,202 | |
Energy Financial Services | | 94 | | | 179 | | | 273 | |
Oil & Gas | | 27 | | | 75 | | | 102 | |
Rail | | 82 | | | 101 | | | 183 | |
Consolidated
| | 2004 | |
| (In millions) | First quarter | | Second quarter | | Third quarter | | Fourth quarter | | Total year | |
| | | | | | | | | | | | | | | | |
Revenues | | | | | | | | | | | | | | | |
| Commercial Financial Services | $ | 10,392 | | $ | 10,319 | | $ | 10,496 | | $ | 11,387 | | $ | 42,594 | |
| Consumer Finance | | 3,589 | | | 3,830 | | | 4,011 | | | 4,304 | | | 15,734 | |
| Healthcare | | 2,495 | | | 3,372 | | | 3,330 | | | 4,259 | | | 13,456 | |
| Industrial | | 7,036 | | | 7,673 | | | 7,635 | | | 8,378 | | | 30,722 | |
| Infrastructure | | 8,314 | | | 9,108 | | | 9,074 | | | 10,877 | | | 37,373 | |
| NBC Universal | | 1,582 | | | 2,867 | | | 4,096 | | | 4,341 | | | 12,886 | |
| Corporate items and eliminations | | 184 | | | (388 | ) | | (306 | ) | | 611 | | | 101 | |
Consolidated revenues | $ | 33,592 | | $ | 36,781 | | $ | 38,336 | | $ | 44,157 | | $ | 152,866 | |
| | | | | | | | | | | | | | | | |
Segment profit | | | | | | | | | | | | | | | |
| Commercial Financial Services | $ | 1,110 | | $ | 827 | | $ | 1,135 | | $ | 1,067 | | $ | 4,139 | |
| Consumer Finance | | 602 | | | 600 | | | 681 | | | 637 | | | 2,520 | |
| Healthcare | | 339 | | | 584 | | | 503 | | | 860 | | | 2,286 | |
| Industrial | | 368 | | | 450 | | | 402 | | | 613 | | | 1,833 | |
| Infrastructure | | 1,501 | | | 1,592 | | | 1,608 | | | 2,096 | | | 6,797 | |
| NBC Universal | | 394 | | | 768 | | | 536 | | | 860 | | | 2,558 | |
Total segment profit | | 4,314 | | | 4,821 | | | 4,865 | | | 6,133 | | | 20,133 | |
| Corporate items and eliminations | | (242 | ) | | (566 | ) | | 11 | | | 435 | | | (362 | ) |
| GE interest and other financial charges | | (239 | ) | | (49 | ) | | (355 | ) | | (336 | ) | | (979 | ) |
| GE provision for income taxes | | (467 | ) | | (455 | ) | | (450 | ) | | (601 | ) | | (1,973 | ) |
| Consolidated net earnings | $ | 3,366 | | $ | 3,751 | | $ | 4,071 | | $ | 5,631 | | $ | 16,819 | |
Commercial Financial Services
| | 2004 | |
| (In millions) | First quarter | | Second quarter | | Third quarter | | Fourth quarter | | Total year | |
| | | | | | | | | | | | | | | | |
Revenues | $ | 10,392 | | $ | 10,319 | | $ | 10,496 | | $ | 11,387 | | $ | 42,594 | |
| | | | | | | | | | | | | | | | |
Net revenues | | | | | | | | | | | | | | | |
| Total revenues | $ | 10,392 | | $ | 10,319 | | $ | 10,496 | | $ | 11,387 | | $ | 42,594 | |
| Interest expense | | 1,214 | | | 1,230 | | | 1,288 | | | 1,448 | | | 5,180 | |
| Total net revenues | $ | 9,178 | | $ | 9,089 | | $ | 9,208 | | $ | 9,939 | | $ | 37,414 | |
| | | | | | | | | | | | | | | | |
Segment profit | $ | 1,110 | | $ | 827 | | $ | 1,135 | | $ | 1,067 | | $ | 4,139 | |
| | | | | | | | | | | | | | | | |
| Quarters ended (In millions) | First quarter | | Second quarter | | Third quarter | | Fourth quarter | | | |
| | | | | | | | | | | | | | | | |
Total assets | $ | 353,065 | | $ | 349,260 | | $ | 353,112 | | $ | 363,593 | | | | |
| | 2004 | |
| (In millions) | First quarter | | Second quarter | | Third quarter | | Fourth quarter | | Total year | |
| | | | | | | | | | | | | | | | |
Revenues | | | | | | | | | | | | | | | |
Capital Solutions | $ | 2,652 | | $ | 2,848 | | $ | 2,877 | | $ | 3,126 | | $ | 11,503 | |
Insurance | | 5,953 | | | 5,554 | | | 5,544 | | | 6,019 | | | 23,070 | |
Real Estate | | 714 | | | 746 | | | 730 | | | 894 | | | 3,084 | |
| | | | | | | | | | | | | | | | |
Segment profit | | | | | | | | | | | | | | | |
Capital Solutions | $ | 251 | | $ | 268 | | $ | 351 | | $ | 455 | | $ | 1,325 | |
Insurance | | 410 | | | 53 | | | 120 | | | (14) | | | 569 | |
Real Estate | | 245 | | | 262 | | | 243 | | | 374 | | | 1,124 | |
| | | | | | | | | | | | | | | | |
| Quarters ended (In millions) | First quarter | | Second quarter | | Third quarter | | Fourth quarter | | | |
| | | | | | | | | | | | | | | | |
Total assets | | | | | | | | | | | | | | | |
Capital Solutions | $ | 76,844 | | $ | 78,787 | | $ | 76,720 | | $ | 80,514 | | | | |
Insurance | | 175,142 | | | 171,112 | | | 176,265 | | | 179,205 | | | | |
Real Estate | | 38,105 | | | 37,218 | | | 37,736 | | | 39,515 | | | | |
| | | | | | | | | | | | | | | | |
Industrial
| | 2004 | |
| (In millions) | First quarter | | Second quarter | | Third quarter | | Fourth quarter | | Total year | |
| | | | | | | | | | | | | | | | |
Revenues | $ | 7,036 | | $ | 7,673 | | $ | 7,635 | | $ | 8,378 | | $ | 30,722 | |
| | | | | | | | | | | | | | | | |
Segment profit | $ | 368 | | $ | 450 | | $ | 402 | | $ | 613 | | $ | 1,833 | |
| | | | | | | | | | | | | | | | |
Revenues | | | | | | | | | | | | | | | |
Consumer & Industrial | $ | 3,097 | | $ | 3,490 | | $ | 3,423 | | $ | 3,757 | | $ | 13,767 | |
Equipment Services | | 1,573 | | | 1,606 | | | 1,665 | | | 1,727 | | | 6,571 | |
Plastics | | 1,374 | | | 1,492 | | | 1,485 | | | 1,715 | | | 6,066 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Segment profit | | | | | | | | | | | | | | | |
Consumer & Industrial | $ | 149 | | $ | 204 | | $ | 163 | | $ | 200 | | $ | 716 | |
Equipment Services | | (16 | ) | | 13 | | | 30 | | | 55 | | | 82 | |
Plastics | | 137 | | | 115 | | | 94 | | | 220 | | | 566 | |
Infrastructure
| | 2004 | |
| (In millions) | First quarter | | Second quarter | | Third quarter | | Fourth quarter | | Total year | |
| | | | | | | | | | | | | | | | |
Revenues | $ | 8,314 | | $ | 9,108 | | $ | 9,074 | | $ | 10,877 | | $ | 37,373 | |
| | | | | | | | | | | | | | | | |
Segment profit | $ | 1,501 | | $ | 1,592 | | $ | 1,608 | | $ | 2,096 | | $ | 6,797 | |
| | | | | | | | | | | | | | | | |
Revenues | | | | | | | | | | | | | | | |
Aircraft Engines | $ | 2,493 | | $ | 2,756 | | $ | 2,667 | | $ | 3,178 | | $ | 11,094 | |
Aviation Services | | 715 | | | 777 | | | 792 | | | 875 | | | 3,159 | |
Energy | | 3,297 | | | 3,472 | | | 3,417 | | | 4,400 | | | 14,586 | |
Energy Financial Services | | 238 | | | 233 | | | 301 | | | 200 | | | 972 | |
Oil & Gas | | 651 | | | 714 | | | 790 | | | 980 | | | 3,135 | |
Rail | | 627 | | | 771 | | | 733 | | | 876 | | | 3,007 | |
| | | | | | | | | | | | | | | | |
Segment profit | | | | | | | | | | | | | | | |
Aircraft Engines | $ | 475 | | $ | 536 | | $ | 518 | | $ | 709 | | $ | 2,238 | |
Aviation Services | | 144 | | | 133 | | | 76 | | | 167 | | | 520 | |
Energy | | 613 | | | 575 | | | 553 | | | 802 | | | 2,543 | |
Energy Financial Services | | 92 | | | 81 | | | 146 | | | 57 | | | 376 | |
Oil and Gas | | 49 | | | 61 | | | 98 | | | 123 | | | 331 | |
Rail | | 84 | | | 139 | | | 140 | | | 153 | | | 516 | |
(8)
