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. P resentation 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 Statements of Earnings and Comprehensive Income for the three months ended September 30, 2016 and 2015 and nine months ended September 30, 2016 and 2015 , Condensed Consolidating Statements of Financial Position as of September 30, 2016 and December 31, 2015 and Condensed Consolidat ing Statements of Cash Flows for the nine months ended September 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 int er-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 SEPTEMBER 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 $ 8,194 $ - $ - $ 36,082 $ (17,462) $ 26,814 Other income 883 - - 35,578 (36,234) 227 Equity in earnings (loss) of affiliates 1,788 - 428 29,804 (32,019) - GE Capital revenues from services - 166 243 2,838 (1,023) 2,224 Total revenues and other income 10,865 166 671 104,302 (86,738) 29,266 Costs and expenses Interest and other financial charges 1,166 138 525 856 (1,724) 961 Investment contracts, insurance losses and insurance annuity benefits - - - 701 (17) 684 Other costs and expenses 8,498 - 16 35,400 (18,367) 25,547 Total costs and expenses 9,664 138 541 36,957 (20,109) 27,191 Earnings (loss) from continuing operations before income taxes 1,201 28 130 67,345 (66,630) 2,074 Benefit (provision) for income taxes 932 (3) (11) (951) 16 (18) Earnings (loss) from continuing operations 2,132 24 119 66,395 (66,614) 2,056 Earnings (loss) from discontinued operations, net of taxes (105) - (552) 224 328 (105) Net earnings (loss) 2,027 24 (433) 66,619 (66,286) 1,951 Less net earnings (loss) attributable to noncontrolling interests - - - (51) (25) (76) Net earnings (loss) attributable to the Company 2,027 24 (433) 66,670 (66,262) 2,027 Other comprehensive income (loss) 477 - 51 (711) 661 477 Comprehensive income (loss) attributable to the Company $ 2,504 $ 24 $ (382) $ 65,959 $ (65,601) $ 2,504 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED SEPTEMBER 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 $ 11,175 $ - $ - $ 33,206 $ (18,854) $ 25,527 Other income 353 - - 2,367 (2,550) 169 Equity in earnings (loss) of affiliates 2,152 - - 126,207 (128,359) - GE Capital revenues from services - - - 7,376 (5,044) 2,332 Total revenues and other income 13,680 - - 169,155 (154,806) 28,028 Costs and expenses Interest and other financial charges 805 - - 2,251 (2,159) 897 Investment contracts, insurance losses and insurance annuity benefits - - - 717 (44) 673 Other costs and expenses 11,155 - - 37,487 (24,233) 24,408 Total costs and expenses 11,960 - - 40,455 (26,436) 25,978 Earnings (loss) from continuing operations before income taxes 1,720 - - 128,700 (128,370) 2,050 Benefit (provision) for income taxes 156 - - 661 (952) (135) Earnings (loss) from continuing operations 1,876 - - 129,362 (129,322) 1,915 Earnings (loss) from discontinued operations, net of taxes 629 - - 1,466 (1,466) 629 Net earnings (loss) 2,506 - - 130,828 (130,789) 2,545 Less net earnings (loss) attributable to noncontrolling interests - - - 88 (49) 39 Net earnings (loss) attributable to the Company 2,506 - - 130,740 (130,740) 2,506 Other comprehensive income (loss) 1,221 - - 175 (175) 1,221 Comprehensive income (loss) attributable to the Company $ 3,727 $ - $ - $ 130,915 $ (130,915) $ 3,727 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE NINE MONTHS ENDED SEPTEMBER 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 $ 28,870 $ - $ - $ 108,043 $ (56,757) $ 80,156 Other income 845 - - 55,062 (52,522) 3,385 Equity in earnings (loss) of affiliates 7,923 - 1,093 58,732 (67,747) - GE Capital revenues from services - 762 1,262 9,182 (4,144) 7,063 Total revenues and other income 37,638 762 2,355 231,019 (181,170) 90,604 Costs and expenses Interest and other financial charges 2,828 685 2,133 4,027 (5,651) 4,023 Investment contracts, insurance losses and insurance annuity benefits - - - 2,188 (87) 2,101 Other costs and expenses 30,555 - 71 108,537 (60,819) 78,344 Total costs and expenses 33,383 686 2,204 114,752 (66,558) 84,467 Earnings (loss) from continuing operations before income taxes 4,255 76 150 116,267 (114,612) 6,137 Benefit (provision) for income taxes 1,862 (10) (58) (1,908) (189) (302) Earnings (loss) from continuing operations 6,118 67 93 114,359 (114,801) 5,835 Earnings (loss) from discontinued operations, net of taxes (954) - (1,547) 398 1,149 (954) Net earnings (loss) 5,164 67 (1,455) 114,757 (113,652) 4,881 Less net earnings (loss) attributable to noncontrolling interests - - - (143) (140) (283) Net earnings (loss) attributable to the Company 5,164 67 (1,455) 114,900 (113,512) 5,164 Other comprehensive income (loss) 2,107 (12) 114 136 (238) 2,107 Comprehensive income (loss) attributable to the Company $ 7,271 $ 55 $ (1,341) $ 115,036 $ (113,750) $ 7,271 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE NINE MONTHS ENDED SEPTEMBER 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 $ 32,310 $ - $ - $ 97,982 $ (55,026) $ 75,266 Other income 765 - - 6,766 (6,439) 1,092 Equity in earnings (loss) of affiliates 1,068 - - 141,183 (142,251) - GE Capital revenues from services - - - 25,000 (17,863) 7,136 Total revenues and other income 34,143 - - 270,930 (221,579) 83,494 Costs and expenses Interest and other financial charges 2,374 - - 6,898 (7,045) 2,228 Investment contracts, insurance losses and insurance annuity benefits - - - 2,070 (128) 1,942 Other costs and expenses 34,174 - - 116,287 (77,420) 73,041 Total costs and expenses 36,549 - - 125,255 (84,592) 77,211 Earnings (loss) from continuing operations before income taxes (2,406) - - 145,675 (136,987) 6,283 Benefit (provision) for income taxes 1,228 - - (9,266) 811 (7,227) Earnings (loss) from continuing operations (1,178) - - 136,409 (136,176) (945) Earnings (loss) from discontinued operations, net of taxes (11,249) - - (1,226) 1,222 (11,253) Net earnings (loss) (12,427) - - 135,182 (134,953) (12,198) Less net earnings (loss) attributable to noncontrolling interests - - - 285 (56) 229 Net earnings (loss) attributable to the Company (12,427) - - 134,897 (134,897) (12,427) Other comprehensive income (loss) 1,189 - - (3,610) 3,610 1,189 Comprehensive income (loss) attributable to the Company $ (11,238) $ - $ - $ 131,288 $ (131,288) $ (11,238) CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION SEPTEMBER 30, 2016 (UNAUDITED) Parent Non- Company Subsidiary Subsidiary Guarantor Consolidating (In millions) Guarantor Issuer Guarantor Subsidiaries Adjustments Consolidated Assets Cash and equivalents $ 2,344 $ - $ 3 $ 53,095 $ (2,913) $ 52,530 Investment securities 2 - - 51,943 (5,576) 46,369 Receivables - net 63,057 17,295 31,971 73,689 (142,660) 43,351 Inventories 5,085 - - 22,080 (3,049) 24,116 Property, plant and equipment - net 5,607 - - 47,128 (1,282) 51,453 Investment in subsidiaries(a) 275,823 - 77,814 479,809 (833,446) - Goodwill and intangible assets 7,987 - - 55,877 22,902 86,767 All other assets 13,491 1,502 554 209,173 (172,543) 52,178 Assets of discontinued operations - - - - 30,930 30,930 Total assets $ 373,397 $ 18,797 $ 110,341 $ 992,795 $ (1,107,637) $ 387,694 Liabilities and equity Short-term borrowings $ 161,873 $ 1 $ 43,258 $ 35,032 $ (208,593) $ 31,571 Accounts payable 3,405 - - 38,742 (29,080) 13,067 Other current liabilities 11,900 31 69 25,671 380 38,051 Long-term and non-recourse borrowings 72,304 18,315 37,400 79,624 (89,782) 117,861 All other liabilities 42,033 269 725 58,203 (10,464) 90,765 Liabilities of discontinued operations - - - - 9,782 9,782 Total Liabilities 291,515 18,615 81,452 237,272 (327,756) 301,098 Redeemable noncontrolling interests - - - 2,309 742 3,051 GE shareowners' equity 81,882 182 28,889 751,448 (780,519) 81,882 Noncontrolling interests - - - 1,766 (103) 1,663 Total equity 81,882 182 28,889 753,214 (780,622) 83,544 Total liabilities, redeemable noncontrolling interests and equity $ 373,397 $ 18,797 $ 110,341 $ 992,795 $ (1,107,637) $ 387,694 (a) Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $ 25.9 billion and net assets of discontinued operations of $ 21.6 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 - - 61,412 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 c ash equivalent balances of $ 40.1 billion and net assets of discontinued operations of $ 58.6 billion. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 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 $ (14,847) $ 175 $ (121) $ 83,404 $ (64,766) $ 3,846 Cash from (used for) operating activities - discontinued operations (954) - - (4,366) (399) (5,719) Cash from (used for) operating activities (15,801) 175 (121) 79,038 (65,165) (1,873) Cash flows – investing activities Cash from (used for) investing activities – continuing operations 20,902 16,080 36,317 32,000 (51,740) 53,559 Cash from (used for) investing activities – discontinued operations - - - (12,056) - (12,056) Cash from (used for) investing activities 20,902 16,080 36,317 19,944 (51,740) 41,503 Cash flows – financing activities Cash from (used for) financing activities – continuing operations (6,894) (16,255) (36,194) (150,446) 134,601 (75,188) Cash from (used for) financing activities – discontinued operations - - - 295 - 295 Cash from (used for) financing activities (6,894) (16,255) (36,194) (150,151) 134,601 (74,893) Effect of currency exchange rate changes on cash and equivalents - - - (169) - (169) Increase (decrease) in cash and equivalents (1,792) - 3 (51,339) 17,696 (35,432) Cash and equivalents at beginning of year 4,137 - - 107,350 (20,609) 90,878 Cash and equivalents at September 30 2,344 - 3 56,011 (2,913) 55,445 Less cash and equivalents of discontinued operations at September 30 - - - 2,915 - 2,915 Cash and equivalents of continuing operations at September 30 $ 2,344 $ - $ 3 $ 53,095 $ (2,913) $ 52,530 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 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 $ (5,898) $ - $ - $ 176,052 $ (164,710) $ 5,444 Cash from (used for) operating activities - discontinued operations (11,249) - - 17,729 1,222 7,702 Cash from (used for) operating activities (17,147) - - 193,781 (163,488) 13,146 Cash flows – investing activities Cash from (used for) investing activities – continuing operations 24,884 - - (93,930) 128,512 59,466 Cash from (used for) investing activities – discontinued operations - - - 305 - 305 Cash from (used for) investing activities 24,884 - - (93,625) 128,512 59,771 Cash flows – financing activities Cash from (used for) financing activities – continuing operations (9,693) - - (46,188) 8,324 (47,556) Cash from (used for) financing activities – discontinued operations - - - (2,250) - (2,250) Cash from (used for) financing activities (9,693) - - (48,438) 8,324 (49,807) Effect of currency exchange rate changes on cash and equivalents - - - (3,516) - (3,516) Increase (decrease) in cash and equivalents (1,956) - - 48,201 (26,651) 19,594 Cash and equivalents at beginning of year 4,820 - - 88,216 (2,020) 91,016 Cash and equivalents at September 30 2,864 - - 136,417 (28,671) 110,610 Less cash and equivalents of discontinued operations at September 30 - - - 26,743 - 26,743 Cash and equivalents of continuing operations at September 30 $ 2,864 $ - $ - $ 109,674 $ (28,671) $ 83,867 |