Guarantees [Text Block] | NOTE 18 . GUARANTOR FINANCIAL INFORMATION Guarantor and Non-Guarantor Condensed Consolidating Financial information On October 26, 2015, GE Capital International Funding Company Unlimited Company, formerly GE Capital International Funding Company (the Issuer), then a finance subsidiary of General Electric Capital Corporation, settled its previously announced private offers to exchange (the Exchange Offers) the Issuer’s new senior unsecured notes for certain outstanding debt securities of General Electric Capital Corporation. The new notes that were issued were composed of $15.3 billion of 0.964% Six Month Notes due April 2016 (which have subsequently been repaid upon maturity), £0.8 billion of 1.363% Six Month Notes due April 2016 (which have subsequently been repaid upon maturity), $6.1 b illion of 2.342% Notes due 2020, $2.0 billion of 3.373% Notes due 2025 and $11.5 billion of 4.418% Notes due 2035. These notes were fully and unconditionally, jointly and severally guaranteed by both the Company and GE Capital International Holdings Limite d (GECIHL) (each a Guarantor, and together, the Guarantors). Under the terms of a registration rights agreement entered into in connection with the Exchange Offers, the Issuer and the Company agreed to file a registration statement with the U.S. Securitie s and Exchange Commission (SEC) for an offer to exchange new senior notes of the Issuer registered with the SEC and guaranteed by the Guarantors for certain of the Issuer’s outstanding unregistered senior notes . Presentation In connection with the regist ration of the senior notes, the Company is required to provide certain financial information regarding the Issuer and the Guarantors of the registered securities . Included are the Condensed C onsolidating Statements of Earnings and Comprehensive Income for the three months ended March 31, 2016 and 2015, Condensed Consolidating Statements of Financial Position as of March 31, 2016 and December 31, 2015 and Condensed Consolidating Statements of Cash Flows for the three months ended March 31, 2016 and 2015 for: General Electric Company (the Parent Company Guarantor) - prepared with investments in subsidiaries accounted for under the equity method of accounting and excluding any inter-segment eliminations. The equity basis earnings (losses) of subsidiaries are r eflected in the captions “Equity in earnings (losses) of affiliates” and “Earnings (loss) from discontinued operations, net of tax”; GE Capital International Funding Company Unlimited Company (the Subsidiary Issuer) – incorporated in May 2015 as a finance subsidiary for debt and reflects activity subsequent to the issuance of new notes on October 26, 2015 ; GE Capital International Holdings Limited (GECIHL) (the Subsidiary Guarantor) - prepared with investments in non-guarantor subsidiaries accounted for und er the equity method of accounting and reflects activity subsequent to the GE Capital Reorganization on December 3, 2015. The equity basis earnings (losses) of subsidiaries are reflected in the captions “Equity in earnings (losses) of affiliates” and “Earn ings (loss) from discontinued operations, net of tax”; Non-Guarantor Subsidiaries - prepared on an aggregated basis excluding any elimination or consolidation adjustments and includes predominantly all non-cash adjustments for cash flows ; Consolidating Adj ustments - adjusting entries necessary to consolidate the Parent Company Guarantor with the Subsidiary Issuer, the Subsidiary Guarantor and Non-Guarantor Subsidiaries; and Consolidated - prepared on a consolidated basis. CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED MARCH 31, 2016 (UNAUDITED) Parent Non- Company Subsidiary Subsidiary Guarantor Consolidating (in millions) Guarantor Issuer Guarantor Subsidiaries Adjustments Consolidated Revenues and other income Sales of goods and services $ 10,013 $ - $ - $ 33,759 $ (18,458) $ 25,314 Other income 226 - - 3,441 (3,659) 9 Equity in earnings (loss) of affiliates 908 - 669 13,623 (15,200) - GE Capital revenues from services - 396 297 4,585 (2,756) 2,522 Total revenues and other income 11,146 396 967 55,407 (40,072) 27,845 Costs and expenses Interest and other financial charges 811 373 931 1,759 (2,137) 1,736 Investment contracts, insurance losses and insurance annuity benefits - - - 672 (30) 642 Other costs and expenses 10,455 - 36 35,166 (20,429) 25,228 Total costs and expenses 11,266 373 968 37,597 (22,597) 27,606 Earnings (loss) from continuing operations before income taxes (120) 24 (1) 17,811 (17,475) 238 Benefit (provision) for income taxes 619 (3) (3) (523) 50 139 Earnings (loss) from continuing operations 499 21 (4) 17,288 (17,425) 378 Earnings (loss) from discontinued operations, net of taxes (308) - (475) (426) 901 (308) Net earnings (loss) 191 21 (479) 16,862 (16,525) 69 Less net earnings (loss) attributable to noncontrolling interests - - - (26) (96) (121) Net earnings (loss) attributable to the Company 191 21 (479) 16,887 (16,429) 191 Other comprehensive income (loss) 824 (12) (182) 268 (74) 824 Comprehensive income (loss) attributable to the Company $ 1,015 $ 9 $ (662) $ 17,155 $ (16,502) $ 1,015 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED MARCH 31, 2015 (UNAUDITED) Parent Non- Company Subsidiary Subsidiary Guarantor Consolidating (in millions) Guarantor Issuer Guarantor Subsidiaries Adjustments Consolidated Revenues and other income Sales of goods and services $ 9,672 $ - $ - $ 31,334 $ (17,323) $ 23,683 Other income (198) - - 1,047 (707) 142 Equity in earnings (loss) of affiliates (3,420) - - 11,639 (8,219) - GE Capital revenues from services - - - 8,556 (6,141) 2,414 Total revenues and other income 6,055 - - 52,575 (32,390) 26,239 Costs and expenses Interest and other financial charges 752 - - 2,369 (2,504) 618 Investment contracts, insurance losses and insurance annuity benefits - - - 644 (32) 613 Other costs and expenses 10,515 - - 40,816 (27,943) 23,388 Total costs and expenses 11,267 - - 43,829 (30,478) 24,619 Earnings (loss) from continuing operations before income taxes (5,212) - - 8,745 (1,913) 1,621 Benefit (provision) for income taxes 574 - - (7,074) 206 (6,294) Earnings (loss) from continuing operations (4,638) - - 1,672 (1,707) (4,673) Earnings (loss) from discontinued operations, net of taxes (8,936) - - (2,326) 2,325 (8,936) Net earnings (loss) (13,573) - - (654) 618 (13,608) Less net earnings (loss) attributable to noncontrolling interests - - - 100 (135) (35) Net earnings (loss) attributable to the Company (13,573) - - (753) 753 (13,573) Other comprehensive income (loss) (4,191) - - (4,990) 4,990 (4,191) Comprehensive income (loss) attributable to the Company $ (17,764) $ - $ - $ (5,743) $ 5,743 $ (17,764) CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION MARCH 31, 2016 (UNAUDITED) Parent Non- Company Subsidiary Subsidiary Guarantor Consolidating (In millions) Guarantor Issuer Guarantor Subsidiaries Adjustments Consolidated Assets Cash and equivalents $ 2,721 $ - $ 6 $ 98,506 $ (26,158) $ 75,075 Investment securities 6 - - 40,612 (7,643) 32,974 Receivables - net 77,279 33,749 64,038 74,226 (205,062) 44,229 Inventories 5,974 - - 21,232 (3,299) 23,907 Property, plant and equipment - net 6,574 - - 50,161 (2,948) 53,786 Investment in subsidiaries(a) 281,040 - 79,415 425,419 (785,874) - Goodwill and intangible assets 7,613 - - 56,491 18,998 83,102 All other assets 15,547 818 1,192 239,007 (189,058) 67,505 Assets of discontinued operations - - - - 81,615 81,615 Total assets $ 396,755 $ 34,567 $ 144,651 $ 1,005,652 $ (1,119,431) $ 462,193 Liabilities and equity Short-term borrowings $ 164,043 $ 16,335 $ 67,054 $ 60,598 $ (256,948) $ 51,082 Accounts payable 6,269 - - 36,167 (29,286) 13,150 Other current liabilities 13,688 2 25 28,707 (2,375) 40,047 Long-term and non-recourse borrowings 80,107 17,651 46,936 95,152 (104,878) 134,967 All other liabilities 41,560 443 1,070 60,455 (13,314) 90,213 Liabilities of discontinued operations - - - - 36,944 36,944 Total Liabilities 305,667 34,431 115,084 281,078 (369,857) 366,403 Redeemable noncontrolling interests - - - 2,946 89 3,036 GE shareowners' equity 91,088 136 29,567 719,648 (749,351) 91,088 Noncontrolling interests - - - 1,979 (312) 1,667 Total equity 91,088 136 29,567 721,627 (749,663) 92,755 Total liabilities, redeemable noncontrolling interests and equity $ 396,755 $ 34,567 $ 144,651 $ 1,005,652 $ (1,119,431) $ 462,193 (a) Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $37.9 billion and net assets of discontinued operations of $33.6 billion. CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2015 Parent Non- Company Subsidiary Subsidiary Guarantor Consolidating (In millions) Guarantor Issuer Guarantor Subsidiaries Adjustments Consolidated Assets Cash and equivalents $ 4,137 $ - $ - $ 86,955 $ (20,609) $ 70,483 Investment securities 14 - - 40,886 (8,927) 31,973 Receivables - net 88,696 33,232 69,306 75,909 (221,286) 45,856 Inventories 5,447 - - 19,762 (2,694) 22,515 Property, plant and equipment - net 6,540 - - 56,808 (9,253) 54,095 Investment in subsidiaries(a) 274,471 - 78,505 405,686 (758,662) - Goodwill and intangible assets 7,793 - - 61,413 14,118 83,324 All other assets 15,732 11 915 247,611 (200,393) 63,876 Assets of discontinued operations - - - - 120,951 120,951 Total assets $ 402,828 $ 33,242 $ 148,725 $ 995,030 $ (1,086,754) $ 493,072 Liabilities and equity Short-term borrowings $ 145,051 $ 16,204 $ 71,862 $ 60,601 $ (243,858) $ 49,860 Accounts payable 6,096 - - 37,636 (30,052) 13,680 Other current liabilities 14,482 (1) 17 34,903 (7,860) 41,540 Long-term and non-recourse borrowings 97,471 16,423 46,392 105,801 (118,345) 147,742 All other liabilities 41,455 489 224 57,997 (9,514) 90,652 Liabilities of discontinued operations - - - - 46,487 46,487 Total Liabilities 304,555 33,115 118,495 296,938 (363,141) 389,962 Redeemable noncontrolling interests - - - 2,888 84 2,972 GE shareowners' equity 98,274 127 30,230 693,589 (723,946) 98,274 Noncontrolling interests - - - 1,616 248 1,864 Total equity 98,274 127 30,230 695,204 (723,697) 100,138 Total liabilities, redeemable noncontrolling interests and equity $ 402,828 $ 33,242 $ 148,725 $ 995,030 $ (1,086,754) $ 493,072 (a) Included within the subsidiaries of t he Subsidiary Guarantor are cash and cash equivalent balances of $40.1 billion and net assets of discontinued operations of $40.0 billion. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2016 (UNAUDITED) Parent Non- Company Subsidiary Subsidiary Guarantor Consolidating (In millions) Guarantor Issuer Guarantor Subsidiaries adjustments Consolidated Cash flows – operating activities Cash from (used for) operating activities - continuing operations $ (18,196) $ 352 $ (924) $ (17,005) $ 37,625 $ 1,852 Cash from (used for) operating activities - discontinued operations (308) - 682 (1,370) (256) (1,252) Cash from (used for) operating activities (18,504) 352 (242) (18,376) 37,369 599 Cash flows – investing activities Cash from (used for) investing activities – continuing operations 12,177 (517) 1,192 76,560 (64,741) 24,671 Cash from (used for) investing activities – discontinued operations - - - 7,112 - 7,112 Cash from (used for) investing activities 12,177 (517) 1,192 83,672 (64,741) 31,783 Cash flows – financing activities Cash from (used for) financing activities – continuing operations 4,911 165 (944) (47,916) 21,823 (21,961) Cash from (used for) financing activities – discontinued operations - - - (112) - (112) Cash from (used for) financing activities 4,911 165 (944) (48,028) 21,823 (22,073) Effect of currency exchange rate changes on cash and equivalents - - - 31 - 31 Increase (decrease) in cash and equivalents (1,416) - 6 17,300 (5,550) 10,340 Cash and equivalents at beginning of year 4,137 - - 107,350 (20,609) 90,878 Cash and equivalents at March 31 2,721 - 6 124,649 (26,158) 101,218 Less cash and equivalents of discontinued operations at March 31 - - - 26,143 - 26,143 Cash and equivalents of continuing operations at March 31 $ 2,721 $ - $ 6 $ 98,506 $ (26,158) $ 75,075 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2015 (UNAUDITED) Parent Non- Company Subsidiary Subsidiary Guarantor Consolidating (In millions) Guarantor Issuer Guarantor Subsidiaries adjustments Consolidated Cash flows – operating activities Cash from (used for) operating activities - continuing operations $ (13,592) $ - $ - $ (1,947) $ 17,541 $ 2,002 Cash from (used for) operating activities - discontinued operations (8,935) - - 10,698 2,325 4,088 Cash from (used for) operating activities (22,527) - - 8,752 19,866 6,090 Cash flows – investing activities Cash from (used for) investing activities – continuing operations 23,988 - - (68,359) 51,265 6,894 Cash from (used for) investing activities – discontinued operations - - - (3,055) - (3,055) Cash from (used for) investing activities 23,988 - - (71,414) 51,265 3,839 Cash flows – financing activities Cash from (used for) financing activities – continuing operations (929) - - 63,743 (69,176) (6,361) Cash from (used for) financing activities – discontinued operations - - - (1,886) - (1,886) Cash from (used for) financing activities (929) - - 61,857 (69,176) (8,246) Effect of currency exchange rate changes on cash and equivalents - - - (3,826) - (3,826) Increase (decrease) in cash and equivalents 532 - - (4,630) 1,955 (2,143) Cash and equivalents at beginning of year 4,820 - - 108,400 (22,203) 91,017 Cash and equivalents at March 31 5,352 - - 103,770 (20,248) 88,874 Less cash and equivalents of discontinued operations at March 31 - - - 20,137 - 20,137 Cash and equivalents of continuing operations at March 31 $ 5,352 $ - $ - $ 83,633 $ (20,248) $ 68,736 |