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 . This exchange was completed in July 2016. Presentation In connection with the registration 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 Stateme nts of Earnings and Comprehensive Income for the three months ended June 30, 2016 and 2015 and six months ended June 30, 2016 and 2015, Condensed Consolidating Statements of Financial Position as of June 30, 2016 and December 31, 2015 and Condensed Consoli dating Statements of Cash Flows for the six months ended June 30, 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 reflected 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 Holdi ngs Limited (GECIHL) (the Subsidiary Guarantor) - prepared with investments in non-guarantor subsidiaries accounted for under 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 “Earnings (loss) from discontinued operations, net of tax”; Non-Guarantor Subsidiaries - prepared on an aggregated basis excluding any eli mination or consolidation adjustments and includes predominantly all non-cash adjustments for cash flows; Consolidating Adjustments - adjusting entries necessary to consolidate the Parent Company Guarantor with the Subsidiary Issuer, the Subsidiary Guarant or 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 JUNE 30, 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 $ 10,664 $ - $ - $ 38,202 $ (20,838) $ 28,028 Other income (264) - - 16,043 (12,629) 3,150 Equity in earnings (loss) of affiliates 5,228 - (5) 15,305 (20,528) - GE Capital revenues from services - 200 722 1,760 (365) 2,316 Total revenues and other income 15,628 200 717 71,310 (54,359) 33,494 Costs and expenses Interest and other financial charges 851 175 677 1,412 (1,790) 1,326 Investment contracts, insurance losses and insurance annuity benefits - - - 815 (40) 776 Other costs and expenses 11,601 - 19 37,971 (22,022) 27,569 Total costs and expenses 12,453 175 695 40,198 (23,852) 29,670 Earnings (loss) from continuing operations before income taxes 3,175 25 21 31,111 (30,508) 3,824 Benefit (provision) for income taxes 256 (3) (43) (435) (254) (479) Earnings (loss) from continuing operations 3,430 22 (22) 30,676 (30,762) 3,345 Earnings (loss) from discontinued operations, net of taxes (541) - (521) 600 (80) (541) Net earnings (loss) 2,890 22 (542) 31,277 (30,841) 2,804 Less net earnings (loss) attributable to noncontrolling interests - - - (66) (20) (86) Net earnings (loss) attributable to the Company 2,890 22 (542) 31,342 (30,822) 2,890 Other comprehensive income (loss) 807 - 246 579 (825) 807 Comprehensive income (loss) attributable to the Company $ 3,696 $ 22 $ (297) $ 31,922 $ (31,646) $ 3,696 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED JUNE 30, 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 $ 11,463 $ - $ - $ 33,442 $ (18,849) $ 26,056 Other income 610 - - 3,352 (3,183) 780 Equity in earnings (loss) of affiliates 2,336 - - 3,338 (5,673) - GE Capital revenues from services - - - 9,068 (6,678) 2,390 Total revenues and other income 14,409 - - 49,200 (34,383) 29,226 Costs and expenses Interest and other financial charges 817 - - 2,277 (2,382) 713 Investment contracts, insurance losses and insurance annuity benefits - - - 709 (52) 657 Other costs and expenses 12,505 - - 37,984 (25,244) 25,245 Total costs and expenses 13,322 - - 40,971 (27,679) 26,614 Earnings (loss) from continuing operations before income taxes 1,086 - - 8,229 (6,704) 2,612 Benefit (provision) for income taxes 497 - - (2,854) 1,558 (799) Earnings (loss) from continuing operations 1,584 - - 5,375 (5,146) 1,813 Earnings (loss) from discontinued operations, net of taxes (2,943) - - (367) 363 (2,947) Net earnings (loss) (1,360) - - 5,008 (4,783) (1,134) Less net earnings (loss) attributable to noncontrolling interests - - - 97 128 225 Net earnings (loss) attributable to the Company (1,360) - - 4,911 (4,911) (1,360) Other comprehensive income (loss) 4,158 - - 1,206 (1,206) 4,158 Comprehensive income (loss) attributable to the Company $ 2,798 $ - $ - $ 6,116 $ (6,116) $ 2,798 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 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 $ 20,676 $ - $ - $ 71,961 $ (39,295) $ 53,342 Other income (38) - - 19,484 (16,288) 3,158 Equity in earnings (loss) of affiliates 6,135 - 665 28,928 (35,728) - GE Capital revenues from services - 596 1,019 6,344 (3,121) 4,838 Total revenues and other income 26,774 596 1,683 126,717 (94,431) 61,339 Costs and expenses Interest and other financial charges 1,662 547 1,608 3,171 (3,927) 3,062 Investment contracts, insurance losses and insurance annuity benefits - - - 1,487 (70) 1,417 Other costs and expenses 22,057 - 55 73,137 (42,452) 52,797 Total costs and expenses 23,719 548 1,663 77,795 (46,449) 57,276 Earnings (loss) from continuing operations before income taxes 3,055 48 20 48,922 (47,983) 4,063 Benefit (provision) for income taxes 875 (6) (46) (958) (205) (340) Earnings (loss) from continuing operations 3,929 42 (26) 47,964 (48,187) 3,723 Earnings (loss) from discontinued operations, net of taxes (849) - (996) 174 821 (849) Net earnings (loss) 3,081 42 (1,022) 48,138 (47,366) 2,874 Less net earnings (loss) attributable to noncontrolling interests - - - (91) (116) (207) Net earnings (loss) attributable to the Company 3,081 42 (1,022) 48,230 (47,250) 3,081 Other comprehensive income (loss) 1,631 (12) 63 847 (898) 1,631 Comprehensive income (loss) attributable to the Company $ 4,711 $ 30 $ (958) $ 49,076 $ (48,148) $ 4,711 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 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 $ 21,135 $ - $ - $ 64,776 $ (36,172) $ 49,739 Other income 413 - - 4,399 (3,889) 922 Equity in earnings (loss) of affiliates (1,084) - - 14,976 (13,892) - GE Capital revenues from services - - - 17,623 (12,819) 4,804 Total revenues and other income 20,464 - - 101,775 (66,773) 55,466 Costs and expenses Interest and other financial charges 1,570 - - 4,646 (4,886) 1,331 Investment contracts, insurance losses and insurance annuity benefits - - - 1,354 (84) 1,270 Other costs and expenses 23,020 - - 78,800 (53,187) 48,633 Total costs and expenses 24,589 - - 84,800 (58,156) 51,233 Earnings (loss) from continuing operations before income taxes (4,125) - - 16,975 (8,617) 4,233 Benefit (provision) for income taxes 1,071 - - (9,927) 1,763 (7,093) Earnings (loss) from continuing operations (3,054) - - 7,047 (6,853) (2,860) Earnings (loss) from discontinued operations, net of taxes (11,879) - - (2,693) 2,689 (11,883) Net earnings (loss) (14,933) - - 4,355 (4,165) (14,743) Less net earnings (loss) attributable to noncontrolling interests - - - 197 (7) 190 Net earnings (loss) attributable to the Company (14,933) - - 4,158 (4,158) (14,933) Other comprehensive income (loss) (34) - - (3,785) 3,785 (34) Comprehensive income (loss) attributable to the Company $ (14,967) $ - $ - $ 373 $ (373) $ (14,967) CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION JUNE 30, 2016 (UNAUDITED) Parent Non- Company Subsidiary Subsidiary Guarantor Consolidating (In millions) Guarantor Issuer Guarantor Subsidiaries Adjustments Consolidated Assets Cash and equivalents $ 2,863 $ - $ 37 $ 53,408 $ (4,185) $ 52,123 Investment securities 7 - - 46,336 (6,623) 39,720 Receivables - net 67,759 17,077 61,339 73,581 (175,943) 43,813 Inventories 5,295 - - 21,957 (2,528) 24,723 Property, plant and equipment - net 5,494 - - 46,395 (1,453) 50,436 Investment in subsidiaries(a) 284,657 - 77,908 420,869 (783,434) - Goodwill and intangible assets 7,709 - - 54,590 21,448 83,747 All other assets 15,293 1,558 1,019 227,904 (188,741) 57,033 Assets of discontinued operations - - - - 49,865 49,865 Total assets $ 389,078 $ 18,635 $ 140,303 $ 945,039 $ (1,091,594) $ 401,461 Liabilities and equity Short-term borrowings $ 166,625 $ - $ 47,814 $ 31,729 $ (214,242) $ 31,927 Accounts payable 3,555 - - 38,275 (28,715) 13,115 Other current liabilities 12,148 27 58 27,183 (674) 38,742 Long-term and non-recourse borrowings 78,035 18,361 62,445 84,118 (118,449) 124,509 All other liabilities 42,031 90 714 59,862 (13,665) 89,031 Liabilities of discontinued operations - - - - 14,384 14,384 Total Liabilities 302,394 18,478 111,031 241,166 (361,361) 311,708 Redeemable noncontrolling interests - - - 2,266 803 3,070 GE shareowners' equity 84,991 158 29,271 699,629 (729,058) 84,991 Noncontrolling interests 1,693 - - 1,977 (1,977) 1,693 Total equity 86,684 158 29,271 701,607 (731,036) 86,684 Total liabilities, redeemable noncontrolling interests and equity $ 389,078 $ 18,635 $ 140,303 $ 945,039 $ (1,091,594) $ 401,461 (a) Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $ 26 . 0 billion and net assets of discontinued operations of $ 24.9 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 - - 61,412 14,118 83,323 All other assets 15,732 11 915 247,611 (200,392) 63,876 Assets of discontinued operations - - - - 120,951 120,951 Total assets $ 402,828 $ 33,242 $ 148,725 $ 995,029 $ (1,086,754) $ 493,071 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 57,996 (9,514) 90,651 Liabilities of discontinued operations - - - - 46,487 46,487 Total Liabilities 304,555 33,115 118,495 296,937 (363,141) 389,961 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 $ 995,029 $ (1,086,754) $ 493,071 (a) Included within the subsidiaries of the 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 SIX MONTHS ENDED JUNE 30, 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 $ (21,092) $ 182 $ 1,032 $ 10,275 $ 11,539 $ 1,936 Cash from (used for) operating activities - discontinued operations (849) - (996) (3,826) 821 (4,849) Cash from (used for) operating activities (21,941) 182 37 6,449 12,361 (2,913) Cash flows – investing activities Cash from (used for) investing activities – continuing operations 17,416 16,084 7,995 97,631 (96,712) 42,414 Cash from (used for) investing activities – discontinued operations - - - (10,646) - (10,646) Cash from (used for) investing activities 17,416 16,084 7,995 86,985 (96,712) 31,768 Cash flows – financing activities Cash from (used for) financing activities – continuing operations 3,252 (16,265) (7,995) (142,451) 100,775 (62,685) Cash from (used for) financing activities – discontinued operations - - - (711) - (711) Cash from (used for) financing activities 3,252 (16,265) (7,995) (143,162) 100,775 (63,396) Effect of currency exchange rate changes on cash and equivalents - - - (24) - (24) Increase (decrease) in cash and equivalents (1,274) - 37 (49,752) 16,424 (34,565) Cash and equivalents at beginning of year 4,137 - - 107,350 (20,609) 90,878 Cash and equivalents at June 30 2,863 - 37 57,598 (4,185) 56,313 Less cash and equivalents of discontinued operations at June 30 - - - 4,190 - 4,190 Cash and equivalents of continuing operations at June 30 $ 2,863 $ - $ 37 $ 53,408 $ (4,185) $ 52,123 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 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 $ (13,885) $ - $ - $ 66,152 $ (49,336) $ 2,932 Cash from (used for) operating activities - discontinued operations (11,879) - - 18,644 2,689 9,454 Cash from (used for) operating activities (25,763) - - 84,795 (46,647) 12,385 Cash flows – investing activities Cash from (used for) investing activities – continuing operations 26,326 - - (120,772) 119,202 24,756 Cash from (used for) investing activities – discontinued operations - - - (8,209) - (8,209) Cash from (used for) investing activities 26,326 - - (128,981) 119,202 16,547 Cash flows – financing activities Cash from (used for) financing activities – continuing operations (2,388) - - 58,236 (72,317) (16,470) Cash from (used for) financing activities – discontinued operations - - - (2,240) - (2,240) Cash from (used for) financing activities (2,388) - - 55,996 (72,317) (18,710) Effect of currency exchange rate changes on cash and equivalents - - - (2,887) - (2,887) Increase (decrease) in cash and equivalents (1,826) - - 8,923 238 7,336 Cash and equivalents at beginning of year 4,820 - - 108,400 (22,203) 91,017 Cash and equivalents at June 30 2,994 - - 117,324 (21,965) 98,353 Less cash and equivalents of discontinued operations at June 30 - - - 19,992 - 19,992 Cash and equivalents of continuing operations at June 30 $ 2,994 $ - $ - $ 97,331 $ (21,965) $ 78,360 |