General Electric 8K Results of Operations and Financial Condition | GE 20 Jan 17

Exhibit 99

GENERAL ELECTRIC COMPANY
CONDENSED STATEMENT OF EARNINGS (LOSS) (UNAUDITED)

	Consolidated					GE(a)					Financial Services (GE Capital)
Three months ended December 31	2016		2015		V%	2016		2015		V%	2016		2015		V%

Revenues and other income
Sales of goods and services	$	30,234	$	30,543	(1)%	$	30,345	$	30,614	(1)%	$	27	$	15	80%
Other income		619		1,135			733		1,143			-		-
GE Capital earnings (loss) from continuing operations		-		-			215		(1,465)			-		-
GE Capital revenues from services		2,235		2,214			-		-			2,622		2,570
Total revenues and other income		33,088		33,892	(2)%		31,294		30,292	3%		2,649		2,585	2%
Costs and expenses
Cost of sales		23,773		23,584			23,318		23,058			593		612
Selling, general and administrative expenses		4,543		4,772			4,029		3,878			709		1,053
Interest and other financial charges		1,002		1,235			536		463			784		953
Investment contracts, insurance losses and
insurance annuity benefits		696		663			-		-			674		676
Other costs and expenses		182		1,735			-		-			191		1,744
Total costs and expenses		30,196		31,989	(6)%		27,883		27,399	2%		2,952		5,039	(41)%
Earnings (loss) from continuing operations
before income taxes		2,893		1,903	52%		3,411		2,892	18%		(303)		(2,454)	88%
Benefit (provision) for income taxes		766		742			67		(204)			699		946
Earnings (loss) from continuing operations		3,659		2,645	38%		3,478		2,688	29%		396		(1,508)	F
Earnings (loss) from discontinued
operations, net of taxes		-		3,758			4		3,716			(1)		3,764
Net earnings (loss)		3,659		6,403	(43)%		3,482		6,404	(46)%		396		2,257	(82)%
Less net earnings (loss) attributable to
noncontrolling interests		(8)		103			(4)		121			(4)		(19)
Net earnings (loss) attributable to the Company		3,667		6,301	(42)%		3,486		6,283	(45)%		399		2,275	(82)%
Preferred stock dividends		(181)		(18)			-		-			(181)		(169)
Net earnings (loss) attributable to
GE common shareowners	$	3,486	$	6,283	(45)%	$	3,486	$	6,283	(45)%	$	218	$	2,107	(90)%
Amounts attributable to GE common
shareowners:
Earnings (loss) from continuing operations	$	3,659	$	2,645	38%	$	3,478	$	2,688	29%	$	396	$	(1,508)	F
Less net earnings (loss) attributable
to noncontrolling interests, continuing operations		(5)		60			(4)		121			(1)		(61)
Earnings (loss) from continuing operations
attributable to the Company		3,664		2,585	42%		3,483		2,567	36%		397		(1,447)	F
Preferred stock dividends		(181)		(18)			-		-			(181)		(169)
Earnings (loss) from continuing operations
attributable to GE common shareowners		3,483		2,567	36%		3,483		2,567	36%		215		(1,615)	F
Earnings (loss) from discontinued
operations, net of taxes		-		3,758			4		3,716			(1)		3,764
Less net earnings (loss) attributable to
noncontrolling interests, discontinued operations		(3)		43			-		-			(3)		43
Net earnings (loss) attributable to GE
common shareowners	$	3,486	$	6,283	(45)%	$	3,486	$	6,283	(45)%	$	218	$	2,107	(90)%
				–					#REF!					#REF!
Per-share amounts - earnings (loss) from
continuing operations
Diluted earnings (loss) per share	$	0.39	$	0.26	50%
Basic earnings (loss) per share	$	0.40	$	0.26	54%
Per-share amounts - net earnings (loss)
Diluted earnings (loss) per share	$	0.39	$	0.64	(39)%
Basic earnings (loss) per share	$	0.40	$	0.64	(38)%
Total average equivalent shares
Diluted		8,901		9,821	(9)%
Basic		8,795		9,745	(10)%
Dividends declared per common share	$	0.24	$	0.23	4%

(a)	Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis.

Amounts may not add due to rounding. Dollar amounts and share amounts in millions; per-share amounts in dollars.

"GE Capital" means GE Capital Global Holdings, LLC (GECGH) and its predecessor General Electric Capital Corporation (GECC) and all of their affiliates and associated companies. Separate information is shown for "GE" and "Financial Services (GE Capital)." Transactions between GE and GE Capital have been eliminated from the "Consolidated" column. See Note 1 to the 2015 consolidated financial statements at www.ge.com/ar2015 for further information about consolidation matters.

GENERAL ELECTRIC COMPANY
CONDENSED STATEMENT OF EARNINGS (LOSS) (UNAUDITED)

	Consolidated					GE(a)					Financial Services (GE Capital)
Twelve months ended December 31	2016		2015		V%	2016		2015		V%	2016		2015		V%

Revenues and other income
Sales of goods and services	$	110,391	$	105,808	4%	$	110,835	$	106,206	4%	$	115	$	79	46%
Other income		4,005		2,227			4,092		2,165			-		-
GE Capital earnings (loss) from continuing operations		-		-			(1,251)		(7,672)			-		-
GE Capital revenues from services		9,297		9,350			-		-			10,790		10,722
Total revenues and other income		123,693		117,386	5%		113,676		100,700	13%		10,905		10,801	1%

Costs and expenses
Cost of sales		87,483		82,693			85,712		80,828			2,331		2,343
Selling, general and administrative expenses		18,377		17,831			16,123		14,914			2,947		3,512
Interest and other financial charges		5,025		3,463			2,026		1,706			3,790		2,301
Investment contracts, insurance losses and
insurance annuity benefits		2,797		2,605			-		-			2,861		2,737
Other costs and expenses		982		2,608			-		-			1,013		2,647
Total costs and expenses		114,663		109,200	5%		103,860		97,447	7%		12,942		13,539	(4)%
Earnings (loss) from continuing operations
before income taxes		9,030		8,186	10%		9,815		3,252	F		(2,037)		(2,739)	(26)%
Benefit (provision) for income taxes		464		(6,485)			(967)		(1,506)			1,431		(4,979)
Earnings (loss) from continuing operations		9,494		1,700	F		8,849		1,746	F		(606)		(7,718)	(92)%
Earnings (loss) from discontinued
operations, net of taxes		(954)		(7,495)			(952)		(7,807)			(954)		(7,485)
Net earnings (loss)		8,540		(5,795)	F		7,896		(6,061)	F		(1,560)		(15,202)	90%
Less net earnings (loss) attributable to
noncontrolling interests		(291)		332			(279)		83			(12)		248
Net earnings (loss) attributable to the Company		8,831		(6,126)	F		8,176		(6,145)	F		(1,548)		(15,450)	90%
Preferred stock dividends		(656)		(18)			-		-			(656)		(330)
Net earnings (loss) attributable to
GE common shareowners	$	8,176	$	(6,145)	F	$	8,176	$	(6,145)	F	$	(2,204)	$	(15,780)	86%
Amounts attributable to GE common
shareowners:
Earnings (loss) from continuing operations	$	9,494	$	1,700	F	$	8,849	$	1,746	F	$	(606)	$	(7,718)	92%
Less net earnings (loss) attributable
to noncontrolling interests, continuing operations		(290)		19			(279)		83			(10)		(64)
Earnings (loss) from continuing operations
attributable to the Company		9,784		1,681	F		9,128		1,663	F		(595)		(7,654)	92%
Preferred stock dividends		(656)		(18)			-		-			(656)		(330)
Earnings (loss) from continuing operations
attributable to GE common shareowners		9,128		1,663	F		9,128		1,663	F		(1,251)		(7,983)	84%
Earnings (loss) from discontinued
operations, net of taxes		(954)		(7,495)			(952)		(7,807)			(954)		(7,485)
Less net earnings (loss) attributable to
noncontrolling interests, discontinued operations		(1)		312			-		-			(1)		312
Net earnings (loss) attributable to GE
common shareowners	$	8,176	$	(6,145)	F	$	8,176	$	(6,145)	F	$	(2,204)	$	(15,780)	86%

Per-share amounts - earnings (loss) from
continuing operations
Diluted earnings (loss) per share	$	1.00	$	0.17	F
Basic earnings (loss) per share	$	1.01	$	0.17	F
Per-share amounts - net earnings (loss)
Diluted earnings (loss) per share	$	0.89	$	(0.61)	F
Basic earnings (loss) per share	$	0.90	$	(0.62)	F
Total average equivalent shares
Diluted		9,130		10,016	(9)%
Basic		9,025		9,944	(9)%
Dividends declared per common share	$	0.93	$	0.92	1%

(a)	Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis.

Amounts may not add due to rounding. Dollar amounts and share amounts in millions; per-share amounts in dollars.

GENERAL ELECTRIC COMPANY
SUMMARY OF OPERATING SEGMENTS (UNAUDITED)

	Three months ended December 31					Twelve months ended December 31
(Dollars in millions)	2016		2015		V%	2016		2015		V%

Revenues(a)
Power	$	8,479	$	7,085	20 %	$	26,827	$	21,490	25 %
Renewable Energy		2,500		1,938	29 %		9,033		6,273	44 %
Oil & Gas		3,402		4,355	(22)%		12,898		16,450	(22)%
Aviation		7,187		6,734	7 %		26,261		24,660	6 %
Healthcare		5,101		4,973	3 %		18,291		17,639	4 %
Transportation		1,243		1,612	(23)%		4,713		5,933	(21)%
Energy Connections & Lighting(b)		3,325		4,657	(29)%		15,133		16,351	(7)%
Total industrial segment revenues		31,236		31,352	- %		113,156		108,796	4 %
Capital		2,649		2,585	2 %		10,905		10,801	1 %
Total segment revenues		33,885		33,937	- %		124,061		119,597	4 %
Corporate items and eliminations(a)		(796)		(46)			(368)		(2,211)
Consolidated revenues and other income
from continuing operations	$	33,088	$	33,892	(2)%	$	123,693	$	117,386	5 %

Segment profit (loss)(a)
Power	$	2,069	$	1,628	27 %	$	4,979	$	4,502	11 %
Renewable Energy		163		56	F		576		431	34 %
Oil & Gas		411		715	(43)%		1,392		2,427	(43)%
Aviation		1,749		1,571	11 %		6,115		5,507	11 %
Healthcare		1,030		938	10 %		3,161		2,882	10 %
Transportation		317		339	(6)%		1,064		1,273	(16)%
Energy Connections & Lighting(b)		102		274	(63)%		311		944	(67)%
Total industrial segment profit		5,842		5,522	6 %		17,598		17,966	(2)%
Capital		215		(1,615)	F		(1,251)		(7,983)	84 %
Total segment profit (loss)		6,057		3,907	55 %		16,347		9,983	64 %
Corporate items and eliminations(a)		(2,106)		(673)			(4,226)		(5,108)
GE interest and other financial charges		(536)		(463)			(2,026)		(1,706)
GE provision for income taxes		67		(204)			(967)		(1,506)
Earnings (loss) from continuing operations
attributable to GE common shareowners		3,483		2,567	36 %		9,128		1,663	F
Earnings (loss) from discontinued operations,
net of taxes		-		3,758	U		(954)		(7,495)	87 %
Less net earnings attributable to
noncontrolling interests, discontinued operations		(3)		43	U		(1)		312	U
Earnings (loss) from discontinued operations,
net of tax and noncontrolling interest		4		3,716	U		(952)		(7,807)	88 %
Consolidated net earnings (loss)
attributable to GE common shareowners	$	3,486	$	6,283	(45)%	$	8,176	$	(6,145)	F

(a)

Segment revenues include revenues and other income related to the segment. Segment profit excludes results reported as discontinued operations and material accounting changes, the portion of earnings or loss attributable to noncontrolling interests of consolidated subsidiaries, and as such only includes the portion of earnings or loss attributable to our share of the consolidated earnings or loss of consolidated subsidiaries. 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, Renewable Energy, Oil & Gas, Aviation, Healthcare, Transportation and Energy Connections & Lighting; included in determining segment profit, which we sometimes refer to as "net earnings," for Capital. Certain corporate costs, such as shared services, employee benefits and information technology are allocated to our segments based on usage. A portion of the remaining corporate costs are allocated based on each segment's relative net cost of operations. Total industrial segment revenues and profit include the sum of our seven industrial reporting segments without giving effect to the elimination of transactions among such segments. Total segment revenues and profit include the sum of our seven industrial segments and one financial services segment, without giving effect to the elimination of transactions among such segments. We believe that this provides investors with a view as to the results of all of our segments, without inter-segment eliminations and corporate items.

(b)	Beginning in the third quarter of 2016, the former Energy Connections and Appliances & Lighting segments are presented as one reporting segment called Energy Connections & Lighting. This segment includes the historical results of the Appliances business prior to its sale in June 2016.

Amounts may not add due to rounding

GENERAL ELECTRIC COMPANY
CONDENSED STATEMENT OF FINANCIAL POSITION (UNAUDITED)


	Consolidated				GE(a)				Financial Services (GE Capital)
	December 31,		December 31,		December 31,		December 31,		December 31,		December 31,
(Dollars in billions)	2016		2015		2016		2015		2016		2015

Assets
Cash and marketable securities	$	92.4	$	102.5	$	10.7	$	10.5	$	81.8	$	91.9
Receivables		24.1		27.0		12.7		14.7		-		-
Inventories		22.4		22.5		22.3		22.4		0.1		0.1
GE Capital financing receivables - net		12.2		12.1		-		-		26.0		25.0
Property, plant & equipment - net		50.5		54.1		19.1		20.1		32.2		34.8
Receivable from GE Capital (debt assumption)		-		-		58.8		84.7		-		-
Investment in GE Capital		-		-		24.7		46.2		-		-
Goodwill & intangible assets		86.9		83.3		84.2		80.5		2.7		2.8
Contract assets		25.2		21.2		25.2		21.2		-		-
Other assets		35.0		46.7		18.7		20.5		25.4		36.0
Assets of businesses held for sale		1.7		2.8		1.6		2.8		-		-
Assets of discontinued operations		14.8		121.0		-		-		14.8		120.9
Total assets	$	365.2	$	493.1	$	277.9	$	323.7	$	183.0	$	311.5

Liabilities and equity
Borrowings	$	136.2	$	197.6	$	79.3	$	103.1	$	117.3	$	180.2
Investment contracts, insurance liabilities and
insurance annuity benefits		26.1		25.7		-		-		26.5		26.2
Non-current compensation and benefits		43.8		40.5		42.8		39.5		1.0		1.0
Other liabilities		73.8		78.8		74.9		77.0		9.0		11.1
Liabilities of businesses held for sale		0.7		0.9		0.7		1.4		-		-
Liabilities of discontinued operations		4.2		46.5		-		0.1		4.1		46.4
Redeemable noncontrolling interest		3.0		3.0		3.0		3.0		-		-
GE shareowners' equity		75.8		98.3		75.8		98.3		24.7		46.2
Noncontrolling interests		1.7		1.9		1.4		1.4		0.3		0.5
Total liabilities and equity	$	365.2	$	493.1	$	277.9	$	323.7	$	183.0	$	311.5

(a)	Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis.

Amounts may not add due to rounding

GENERAL ELECTRIC COMPANY

Financial Measures That Supplement GAAP

We sometimes use financial measures derived from consolidated financial information but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain of these are considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules. The following non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure.

	Industrial operating and GE Capital earnings (loss) from continuing operations and EPS

	Industrial operating + Verticals earnings and EPS

	Industrial operating profit and operating profit margin (excluding certain items)

	Industrial segment organic revenues and industrial segment organic revenues including Alstom results for November and December of both 2015 and 2016

	Industrial cash flows from operating activities (Industrial CFOA) and Industrial CFOA excluding deal taxes and pension funding

	Free cash flow plus dispositions

The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures follow. Certain columns, rows or percentages within these reconciliations may not add or recalculate due to the use of rounded numbers. Totals and percentages presented are calculated from the underlying numbers in millions.


INDUSTRIAL OPERATING AND GE CAPITAL EARNINGS (LOSS) FROM CONTINUING OPERATIONS AND EPS

		Three months ended December 31					Twelve months ended December 31
(Dollars in millions; except per share amounts)		2016		2015	V%		2016		2015	V%

Earnings (loss) from continuing operations attributable to GE
common shareowners (GAAP)	$	3,483	$	2,567		$	9,128	$	1,663
Non-operating pension costs (pre-tax)		517		687			2,052		2,764
Tax effect on non-operating pension costs(a)		(181)		(240)			(718)		(967)
Adjustment: non-operating pension costs (net of tax)		336		447			1,334		1,797
Operating earnings (loss) (Non-GAAP)		3,819		3,014	27%		10,462		3,460	F

Adjustment: GE Capital earnings (loss) from continuing operations
attributable to GE common shareowners		215		(1,615)			(1,251)		(7,983)
Industrial operating earnings (Non-GAAP)	$	3,603	$	4,629	(22)%	$	11,713	$	11,443	2%

Earnings (loss) per share - diluted(a)
Continuing EPS from continuing operations
attributable to GE common shareowners (GAAP)		0.39		0.26	50%		1.00		0.17	F
Adjustment: non-operating pension costs (net of tax)		0.04		0.05			0.15		0.18
Operating EPS (Non-GAAP)		0.43		0.31	39%		1.14		0.35	F
GE Capital EPS from continuing operations
attributable to GE common shareowners (GAAP)		0.02		(0.16)	F		(0.14)		(0.80)	83%
Industrial operating EPS (Non-GAAP)	$	0.40	$	0.47	(15)%	$	1.28	$	1.14	12%

(a)	The tax effect on non-operating pension costs was calculated using a 35% U.S. federal statutory tax rate, based on its applicability to such cost.

(b)	Earnings (loss) per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.

Operating earnings (loss) excludes non-service related pension costs of our principal pension plans comprising interest cost, expected return on plan assets and amortization of actuarial gains/losses. The service cost, prior service cost and any curtailment gain or loss components of our principal pension plans are included in operating earnings. We believe that these components of pension cost better reflect the ongoing service-related costs of providing pension benefits to our employees. As such, we believe that our measure of operating earnings (loss) provides management and investors with a useful measure of the operational results of our business. Other components of GAAP pension cost are mainly driven by capital allocation decisions and market performance, and we manage these separately from the operational performance of our businesses. Non-operating pension costs are not necessarily indicative of the current or future cash flow requirements related to our pension plan. We also believe that this measure, considered along with the corresponding GAAP measure, provides management and investors with additional information for comparison of our operating results to the operating results of other companies.

INDUSTRIAL OPERATING + VERTICALS EARNINGS AND EPS

		Three months ended December 31					Twelve months ended December 31
(Dollars in millions; except per share amounts)		2016		2015	V%		2016		2015	V%

GE Capital earnings (loss) from continuing operations
attributable to GE common shareowners (GAAP)	$	215	$	(1,615)	F	$	(1,251)	$	(7,983)	84%
Adjustment: GE Capital other continuing
earnings (loss) (Other Capital)		(262)		(2,053)			(3,143)		(9,649)
Verticals earnings(a)	$	478	$	438	9%	$	1,892	$	1,666	14%

Industrial operating earnings (Non-GAAP)	$	3,603	$	4,629	(22)%	$	11,713	$	11,443	2%
Verticals earnings(a)		478		438			1,892		1,666
Industrial operating earnings + Verticals earnings (Non-GAAP)	$	4,081	$	5,067	(19)%	$	13,605	$	13,109	4%
Adjustment: Non-operating pension costs and Other Capital		(598)		(2,500)			(4,477)		(11,446)
Earnings (loss) from continuing operations
attributable to GE common shareowners (GAAP)	$	3,483		2,567	36%	$	9,128		1,663	F


Earnings (loss) per share - diluted(b)
Industrial operating EPS (Non-GAAP)	$	0.40	$	0.47	(15)%	$	1.28	$	1.14	12%
Verticals EPS		0.05		0.04	25%		0.21		0.17	24%
Industrial operating + Verticals EPS (Non-GAAP)	$	0.46	$	0.52	(12)%	$	1.49	$	1.31	14%
Adjustment: Non-operating pension costs and Other Capital		(0.07)		(0.25)			(0.49)		(1.14)
EPS from continuing operations (GAAP)	$	0.39		0.26	50%	$	1.00		0.17	F

(a)

Verticals include businesses expected to be retained (GECAS, EFS, Industrial Finance, and run-off Insurance), including allocated corporate after tax costs of $25 million in both the three months ended December 31, 2016 and 2015 and $100 million and $133 million in the twelve months ended December 31, 2016 and 2015, respectively.

(b)	Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.

As described above, Verticals represents the GE Capital businesses that we expect to retain. We believe that presenting Industrial operating + Verticals earnings-per-share amounts provides management and investors with a useful measure to evaluate the performance of the businesses we expect to retain after the disposition of most of our financial services business.

INDUSTRIAL OPERATING PROFIT AND OPERATING PROFIT MARGIN (EXCLUDING CERTAIN ITEMS)

	Three months ended December 31				Twelve months ended December 31
(Dollars in millions)		2016		2015		2016		2015

Revenues
GE total revenues and other income	$	31,294	$	30,292	$	113,676	$	100,700
Less: GE Capital earnings (loss) from continuing operations		215		(1,465)		(1,251)		(7,672)
GE revenues and other income excluding GE Capital
earnings (loss) (Industrial revenues) (GAAP)	$	31,079	$	31,757	$	114,927	$	108,371

Less: gains		49		998		3,444		1,497
Less: Alstom revenues		3,805		1,956		13,015		1,956
Adjusted Industrial revenues (Non-GAAP)	$	27,225	$	28,803	$	98,468	$	104,918

Costs
GE total costs and expenses	$	27,883	$	27,399	$	103,860	$	97,447
Less: GE interest and other financial charges		536		463		2,026		1,706
Industrial costs excluding interest and other financial charges (GAAP)	$	27,347	$	26,936	$	101,834	$	95,741

Less: Alstom costs and expenses		3,295		2,110		12,243		2,110
Less: non-operating pension costs (pre-tax)		517		687		2,052		2,764
Less: restructuring and other		1,022		567		3,578		1,734
Less: noncontrolling interests and 2015 GE preferred stock dividend		4		30		279		229
Adjusted Industrial costs (Non-GAAP)	$	22,509	$	23,542	$	83,682	$	88,905

Industrial profit (GAAP)	$	3,732	$	4,820	$	13,093	$	12,630
Industrial margins (GAAP)		12.0%		15.2%		11.4%		11.7%

Industrial operating profit (Non-GAAP)	$	4,716	$	5,259	$	14,786	$	16,013
Industrial operating profit margins (Non-GAAP)		17.3%		18.3%		15.0%		15.3%

We have presented our Industrial operating profit and operating profit margin excluding gains, non-operating pension costs (pre-tax) restructuring and other, noncontrolling interests, GE Capital preferred stock dividends, as well as the results of Alstom. We believe that Industrial operating profit and operating profit margin adjusted for these items are meaningful measures because they increase the comparability of period-to-period results.

INDUSTRIAL SEGMENT ORGANIC REVENUES GROWTH AND INDUSTRIAL SEGMENT ORGANIC REVENUES
INCLUDING ALSTOM RESULTS FOR NOVEMBER AND DECEMBER OF BOTH 2015 AND 2016

	Three months ended December 31					Twelve months ended December 31
(Dollars in millions)		2016		2015	V%		2016		2015	V%

Industrial segment revenues (GAAP)	$	31,236	$	31,352	- %	$	113,156	$	108,796	4 %
Adjustments:
Acquisitions		3,916		1,961			13,207		1,961
Business dispositions (other than dispositions of businesses
acquired for investment		104		1,833			1,256		6,838
Currency exchange rates		(79)		-			(808)		-
Industrial segment organic revenues (Non-GAAP)		27,295		27,559	(1)%		99,501		99,997	- %
Adjustments: Plus Alstom November and December(a)		3,202		1,812			3,202		1,812
Industrial segment organic revenues including November
and December of both 2015 and 2016 (Non-GAAP)	$	30,497	$	29,371	4 %	$	102,703	$	101,809	1 %

(a)	Alstom was acquired in November 2015. This adjustment results in the inclusion of Alstom revenues from November and December 2015 and 2016 in the adjusted organic revenue growth measure as described below.

Organic revenue growth measures revenue excluding the effects of acquisitions, business dispositions and currency exchange rates. We believe that this measure provides management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and currency exchange, which activities are subject to volatility and can obscure underlying trends. We also believe that presenting organic revenue growth separately for our industrial businesses provides management and investors with useful information about the trends of our industrial businesses and enables a more direct comparison to other non-financial businesses and companies. Management recognizes that the term "organic revenue growth" may be interpreted differently by other companies and under different circumstances. Although this may have an effect on comparability of absolute percentage growth from company to company, we believe that these measures are useful in assessing trends of the respective businesses or companies and may therefore be a useful tool in assessing period-to-period performance trends.

We integrate acquisitions as soon as possible. Revenues from the date we complete the acquisition through the end of the fourth quarter following the acquisition are considered the acquisition effect of such business for purposes of calculating organic revenue. As such, organic revenue excludes Alstom revenues from November 3, 2015 through December 31, 2016. However, because of the significance of Alstom to our results and the exclusion of Alstom revenues for more than 12 months in calculating organic revenue growth, we believe investors would also find it helpful to see the revenue growth of the industrial segments adjusted to include Alstom's November and December revenues in an organic measure. As a result, we have also presented an adjusted organic revenue growth measure on that basis.

INDUSTRIAL CASH FLOWS FROM OPERATING ACTIVITIES (INDUSTRIAL CFOA)
AND INDUSTRIAL CFOA EXCLUDING DEAL TAXES AND PENSION FUNDING

	Twelve months ended December 31
(Dollars in millions)		2016		2015	V%

Cash from GE's operating activities (continuing operations), as reported (GAAP)	$	29,960	$	16,354	83%
Adjustment: dividends from GE Capital		20,095		4,300
Industrial CFOA (Non-GAAP)	$	9,865	$	12,054	(18)%
Adjustment: deal taxes related to the Appliances business sale & pension funding		1,745		184
Industrial CFOA excluding deal taxes and pension funding (Non-GAAP)	$	11,611	$	12,238	(5)%

We define "Industrial CFOA" as GE's cash from operating activities (continuing operations) less the amount of dividends received by GE from GE Capital. This includes the effects of intercompany transactions, including GE customer receivables sold to GE Capital; GE Capital services for trade receivables management and material procurement; buildings and equipment leased by GE from GE Capital; information technology (IT) and other services sold to GE Capital by GE; aircraft engines manufactured by GE that are installed on aircraft purchased by GE Capital from third-party producers for lease to others; and various investments, loans and allocations of GE corporate overhead costs. We believe that investors may find it useful to compare GE's operating cash flows without the effect of GE Capital dividends, since these dividends are not representative of the operating cash flows of our industrial businesses and can vary from period to period based upon the results of the financial services businesses. We also believe that investors may find it useful to compare Industrial CFOA excluding the effects of deal taxes paid related to the Appliances business sale and the amount of pension funding. Management recognizes that these measures may not be comparable to cash flow results of companies which contain both industrial and financial services businesses, but believes that this comparison is aided by the provision of additional information about the amounts of dividends paid by our financial services business and the separate presentation in our financial statements of the GE Capital cash flows. We believe that our measure of Industrial CFOA and Industrial CFOA excluding Appliances deal-related taxes and pension funding provides management and investors with useful measures to compare the capacity of our industrial operations to generate operating cash flow with the operating cash flow of other non-financial businesses and companies and as such provides useful measures to supplement the reported GAAP CFOA measure.

FREE CASH FLOW PLUS DISPOSITIONS

	Twelve months ended
(Dollars in millions)	December 31, 2016

Cash from GE's operating activities (continuing operations) (GAAP)	$	29,960
Less GE additions to property, plant and equipment		3,758
Plus GE dispositions of property, plant and equipment		1,080
Free cash flow (FCF) (Non-GAAP)		27,282

Plus GE proceeds from principal business dispositions		5,357
FCF plus dispositions (Non-GAAP)		32,639

We define free cash flow as GE's cash from operating activities (continuing operations) less GE additions to property, plant and equipment and plus GE dispositions of property, plant and equipment, which are included in cash flows from investing activities. We believe that free cash flow is a useful financial metric to assess our ability to pursue opportunities to enhance our growth. We also believe that presenting free cash flow plus proceeds from business dispositions provides investors with useful information about the company's actual performance against performance targets. Management recognizes that the term free cash flow may be interpreted differently by other companies and under different circumstances. Although this may have an effect on comparability of absolute percentage growth from company to company, we believe that these measures are useful in assessing trends of the respective businesses or companies and may therefore be a useful tool in assessing period-to-period performance trends.

General Electric (GE) 8-KResults of Operations and Financial Condition