Document and Entity Information
Document and Entity Information shares in Thousands | 6 Months Ended |
Jun. 30, 2017shares | |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2017 |
Amendment Flag | false |
Entity Registrant Name | General Electric Company |
Trading Symbol | GE |
Entity Central Index Key | 40,545 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 8,657,946 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2,017 |
STATEMENT OF EARNINGS (LOSS)
STATEMENT OF EARNINGS (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||||
Revenues and other income | |||||||
Sales of goods | $ 18,364 | $ 18,865 | $ 35,176 | $ 36,073 | |||
Sales of services | 8,875 | 9,163 | 17,291 | 17,269 | |||
Other income | 298 | 3,150 | 465 | 3,158 | |||
GE Capital earnings (loss) from continuing operations | 0 | 0 | 0 | 0 | |||
GE Capital revenues from services | 2,022 | 2,316 | 4,286 | 4,838 | |||
Total revenues and other income | 29,558 | 33,494 | 57,219 | 61,339 | |||
Costs and expenses | |||||||
Cost of goods sold | 15,501 | 15,690 | 29,991 | 30,278 | |||
Cost of services sold | 6,292 | 6,693 | 12,162 | 12,466 | |||
Selling, general and administrative expenses | 4,287 | 4,883 | 8,793 | 9,491 | |||
Interest and other financial charges | 1,174 | 1,326 | 2,313 | 3,062 | |||
Investment contracts, insurance losses and insurance annuity benefits | 657 | 776 | 1,291 | 1,417 | |||
Other costs and expenses | 133 | 303 | 323 | 562 | |||
Total costs and expenses | 28,044 | 29,670 | 54,872 | 57,276 | |||
Earnings (loss) from continuing operations before income taxes | 1,515 | 3,824 | 2,346 | 4,063 | |||
Benefit (provision) for income taxes | (15) | (461) | (31) | (284) | |||
Earnings (loss) from continuing operations | 1,499 | 3,363 | 2,315 | 3,779 | |||
Earnings (loss) from discontinued operations, net of taxes (Note 2) | (146) | (541) | (385) | (849) | |||
Net earnings (loss) | 1,354 | 2,823 | 1,931 | 2,930 | |||
Less net earnings (loss) attributable to noncontrolling interests | (14) | (86) | (90) | (207) | |||
Net earnings (loss) attributable to the Company | 1,367 | 2,908 | 2,020 | 3,137 | |||
Preferred stock dividends | (182) | (152) | (216) | (441) | |||
Net earnings (loss) attributable to GE common shareowners | 1,185 | 2,756 | 1,804 | 2,695 | |||
Amounts attributable to GE common shareowners | |||||||
Earnings (loss) from continuing operations | 1,499 | 3,363 | 2,315 | 3,779 | |||
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | (21) | (89) | (97) | (210) | |||
Earnings (loss) from continuing operations attributable to the Company | 1,520 | 3,452 | 2,412 | 3,989 | |||
Preferred stock dividends | (182) | (152) | (216) | (441) | |||
Earnings (loss) from continuing operations attributable to GE common shareowners | 1,338 | 3,300 | 2,196 | 3,548 | |||
Earnings (loss) from discontinued operations, net of taxes | (146) | (541) | (385) | (849) | |||
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | 7 | 3 | 7 | 3 | |||
Net earnings (loss) attributable to GE common shareowners | $ 1,185 | $ 2,756 | $ 1,804 | $ 2,695 | |||
Earnings (loss) from continuing operations | |||||||
Diluted earnings (loss) per share (in dollars per share) | $ 0.15 | $ 0.36 | $ 0.25 | $ 0.38 | |||
Basic earnings (loss) per share (in dollars per share) | 0.15 | 0.36 | 0.25 | 0.39 | |||
Net earnings (loss) | |||||||
Diluted earnings (loss) per share (in dollars per share) | 0.13 | 0.30 | 0.20 | 0.29 | |||
Basic earnings (loss) per share (in dollars per share) | 0.14 | 0.30 | 0.21 | 0.29 | |||
Dividends declared per common share (in dollars per share) | $ 0.24 | $ 0.23 | $ 0.48 | $ 0.46 | |||
GE | |||||||
Revenues and other income | |||||||
Sales of goods | [1] | $ 18,426 | $ 18,912 | $ 35,264 | $ 36,124 | ||
Sales of services | [1] | 8,867 | 9,238 | 17,420 | 17,432 | ||
Other income | [1] | 300 | 3,054 | 437 | 3,146 | ||
GE Capital earnings (loss) from continuing operations | [1] | (172) | (600) | (219) | (1,492) | ||
GE Capital revenues from services | [1] | 0 | 0 | 0 | 0 | ||
Total revenues and other income | [1] | 27,421 | 30,604 | 52,902 | 55,210 | ||
Costs and expenses | |||||||
Cost of goods sold | [1] | 15,571 | 15,742 | 30,092 | 30,339 | ||
Cost of services sold | [1] | 5,757 | 6,216 | 11,210 | 11,509 | ||
Selling, general and administrative expenses | [1] | 3,919 | 4,231 | 7,939 | 8,214 | ||
Interest and other financial charges | [1] | 637 | 567 | 1,200 | 1,007 | ||
Investment contracts, insurance losses and insurance annuity benefits | [1] | 0 | 0 | 0 | 0 | ||
Other costs and expenses | [1] | 0 | 0 | 0 | 0 | ||
Total costs and expenses | [1] | 25,883 | 26,756 | 50,441 | 51,069 | ||
Earnings (loss) from continuing operations before income taxes | [1] | 1,538 | 3,847 | 2,461 | 4,141 | ||
Benefit (provision) for income taxes | [1] | (218) | (629) | (361) | (793) | ||
Earnings (loss) from continuing operations | [1] | 1,320 | 3,218 | 2,100 | 3,349 | ||
Earnings (loss) from discontinued operations, net of taxes (Note 2) | [1] | (152) | (544) | (392) | (852) | ||
Net earnings (loss) | [1] | 1,167 | 2,674 | 1,708 | [2] | 2,496 | [2] |
Less net earnings (loss) attributable to noncontrolling interests | [1] | (18) | (82) | (96) | [2] | (199) | [2] |
Net earnings (loss) attributable to the Company | [1] | 1,185 | 2,756 | 1,804 | [2] | 2,695 | [2] |
Preferred stock dividends | [1] | 0 | 0 | 0 | 0 | ||
Net earnings (loss) attributable to GE common shareowners | [1] | 1,185 | 2,756 | 1,804 | 2,695 | ||
Amounts attributable to GE common shareowners | |||||||
Earnings (loss) from continuing operations | [1] | 1,320 | 3,218 | 2,100 | 3,349 | ||
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | [1] | (18) | (82) | (96) | (199) | ||
Earnings (loss) from continuing operations attributable to the Company | [1] | 1,338 | 3,300 | 2,196 | 3,548 | ||
Preferred stock dividends | [1] | 0 | 0 | 0 | 0 | ||
Earnings (loss) from continuing operations attributable to GE common shareowners | [1] | 1,338 | 3,300 | 2,196 | 3,548 | ||
Earnings (loss) from discontinued operations, net of taxes | [1] | (152) | (544) | (392) | [2] | (852) | [2] |
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | [1] | 0 | 0 | 0 | 0 | ||
Net earnings (loss) attributable to GE common shareowners | [1] | 1,185 | 2,756 | 1,804 | 2,695 | ||
Financial Services (GE Capital) | |||||||
Revenues and other income | |||||||
Sales of goods | 33 | 29 | 62 | 54 | |||
Sales of services | 0 | 0 | 0 | 0 | |||
Other income | 0 | 0 | 0 | 0 | |||
GE Capital earnings (loss) from continuing operations | 0 | 0 | 0 | 0 | |||
GE Capital revenues from services | 2,413 | 2,742 | 5,065 | 5,602 | |||
Total revenues and other income | 2,446 | 2,771 | 5,127 | 5,656 | |||
Costs and expenses | |||||||
Cost of goods sold | 27 | 24 | 50 | 44 | |||
Cost of services sold | 520 | 552 | 1,082 | 1,120 | |||
Selling, general and administrative expenses | 498 | 733 | 1,073 | 1,607 | |||
Interest and other financial charges | 771 | 958 | 1,582 | 2,389 | |||
Investment contracts, insurance losses and insurance annuity benefits | 682 | 815 | 1,318 | 1,486 | |||
Other costs and expenses | 144 | 313 | 358 | 581 | |||
Total costs and expenses | 2,641 | 3,394 | 5,461 | 7,227 | |||
Earnings (loss) from continuing operations before income taxes | (195) | (623) | (334) | (1,571) | |||
Benefit (provision) for income taxes | 202 | 168 | 330 | 509 | |||
Earnings (loss) from continuing operations | 7 | (454) | (4) | (1,062) | |||
Earnings (loss) from discontinued operations, net of taxes (Note 2) | (146) | (541) | (388) | (849) | |||
Net earnings (loss) | (138) | (995) | (392) | (1,911) | |||
Less net earnings (loss) attributable to noncontrolling interests | 4 | (4) | 6 | (8) | |||
Net earnings (loss) attributable to the Company | (142) | (991) | (398) | (1,903) | |||
Preferred stock dividends | (182) | (152) | (216) | (441) | |||
Net earnings (loss) attributable to GE common shareowners | (324) | (1,143) | (614) | (2,344) | |||
Amounts attributable to GE common shareowners | |||||||
Earnings (loss) from continuing operations | 7 | (454) | (4) | (1,062) | |||
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | (3) | (7) | (1) | (11) | |||
Earnings (loss) from continuing operations attributable to the Company | 10 | (448) | (3) | (1,051) | |||
Preferred stock dividends | (182) | (152) | (216) | (441) | |||
Earnings (loss) from continuing operations attributable to GE common shareowners | (172) | (600) | (219) | (1,492) | |||
Earnings (loss) from discontinued operations, net of taxes | (146) | (541) | (388) | (849) | |||
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | 7 | 3 | 7 | 3 | |||
Net earnings (loss) attributable to GE common shareowners | $ (324) | $ (1,143) | $ (614) | $ (2,344) | |||
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. | ||||||
[2] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 1,354 | $ 2,823 | $ 1,931 | $ 2,930 |
Less net earnings (loss) attributable to noncontrolling interests | (14) | (86) | (90) | (207) |
Net earnings (loss) attributable to the Company | 1,367 | 2,908 | 2,020 | 3,137 |
Other comprehensive income (loss) | ||||
Investment securities | 243 | 397 | 191 | 617 |
Currency translation adjustments | 525 | 55 | 1,341 | 57 |
Cash flow hedges | (10) | (25) | 9 | 30 |
Benefit plans | 560 | 382 | 1,610 | 933 |
Other comprehensive income (loss) | 1,318 | 810 | 3,151 | 1,636 |
Less other comprehensive income (loss) attributable to noncontrolling interests | 1 | 3 | 7 | 6 |
Other comprehensive income (loss) attributable to the Company | 1,317 | 807 | 3,144 | 1,631 |
Comprehensive income (loss) | 2,672 | 3,633 | 5,082 | 4,566 |
Less comprehensive income (loss) attributable to noncontrolling interests | (13) | (82) | (83) | (201) |
Comprehensive income (loss) attributable to the Company | $ 2,685 | $ 3,715 | $ 5,164 | $ 4,767 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS' EQUITY $ in Millions | USD ($) | |
Increase (Decrease) in Stockholders' Equity | ||
Noncontrolling interests | $ 1,864 | |
Beginning balance at Dec. 31, 2015 | 98,274 | |
Increase (Decrease) in Stockholders' Equity | ||
Net earnings (loss) attributable to the Company | 3,137 | |
Dividends and other transactions with shareowners | (4,680) | |
Redemption value adjustment for redeemable noncontrolling interests | (110) | |
Other comprehensive income (loss) attributable to the Company | 1,631 | |
Net sales (purchases) of shares for treasury | (12,585) | |
Changes in other capital | (674) | |
Ending balance at Jun. 30, 2016 | 84,991 | |
Increase (Decrease) in Stockholders' Equity | ||
Noncontrolling interests | 1,667 | |
Net earnings (loss) attributable to the Company | 2,908 | |
Other comprehensive income (loss) attributable to the Company | 807 | |
Ending balance at Jun. 30, 2016 | 84,991 | |
Increase (Decrease) in Stockholders' Equity | ||
Noncontrolling interests | 1,693 | |
Total equity | 86,684 | |
Noncontrolling interests | 1,663 | [1] |
Total equity | 77,491 | |
Beginning balance at Dec. 31, 2016 | 75,828 | [2] |
Increase (Decrease) in Stockholders' Equity | ||
Net earnings (loss) attributable to the Company | 2,020 | |
Dividends and other transactions with shareowners | (4,393) | |
Redemption value adjustment for redeemable noncontrolling interests | (114) | |
Other comprehensive income (loss) attributable to the Company | 3,144 | |
Net sales (purchases) of shares for treasury | (2,579) | |
Changes in other capital | 244 | |
Ending balance at Jun. 30, 2017 | 74,148 | [2] |
Increase (Decrease) in Stockholders' Equity | ||
Noncontrolling interests | 1,639 | |
Net earnings (loss) attributable to the Company | 1,367 | |
Other comprehensive income (loss) attributable to the Company | 1,317 | |
Ending balance at Jun. 30, 2017 | 74,148 | [2] |
Increase (Decrease) in Stockholders' Equity | ||
Noncontrolling interests | 1,634 | [1] |
Total equity | $ 75,783 | |
[1] | Included AOCI attributable to noncontrolling interests of $(271) million and $(278) million at June 30, 2017 and December 31, 2016, respectively. | |
[2] | The sum of accumulated other comprehensive income (loss) (AOCI) attributable to the Company was $(15,454) million and $(18,598) million at June 30, 2017 and December 31, 2016, respectively. |
STATEMENT OF FINANCIAL POSITION
STATEMENT OF FINANCIAL POSITION - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Assets | |||
Cash and equivalents | $ 44,049 | $ 48,129 | |
Investment securities (Note 3) | 39,968 | 44,313 | |
Current receivables (Note 4) | 21,447 | 24,076 | |
Inventories (Note 5) | 22,843 | 22,354 | |
Financing receivables – net (Note 6) | 12,149 | 12,242 | |
Other GE Capital receivables | 6,156 | 5,944 | |
Property, plant and equipment – net (Note 7) | 50,167 | 50,518 | |
Receivable from GE Capital (debt assumption) | 0 | 0 | |
Investment in GE Capital | 0 | 0 | |
Goodwill (Note 8) | 72,335 | 70,438 | |
Other intangible assets – net (Note 8) | 16,929 | 16,436 | |
Contract assets (Note 9) | 28,924 | 25,162 | |
All other assets | 27,318 | 27,176 | |
Deferred income taxes, assets (Note 13) | 1,241 | 1,833 | |
Assets of businesses held for sale (Note 2) | 4,096 | 1,745 | |
Assets of discontinued operations (Note 2) | 7,850 | 14,815 | |
Total assets | [1] | 355,473 | 365,183 |
Liabilities and equity | |||
Short-term borrowings (Note 10) | 30,044 | 30,714 | |
Accounts payable, principally trade accounts | 13,283 | 14,435 | |
Progress collections and price adjustments accrued | 17,162 | 16,760 | |
Dividends payable | 2,090 | 2,107 | |
Other GE current liabilities | 16,755 | 17,564 | |
Non-recourse borrowings of consolidated securitization entities (Note 10) | 682 | 417 | |
Long-term borrowings (Note 10) | 103,676 | 105,080 | |
Investment contracts, insurance liabilities and insurance annuity benefits (Note 11) | 26,471 | 26,086 | |
Non-current compensation and benefits | 42,621 | 43,780 | |
All other liabilities | 21,607 | 22,912 | |
Liabilities of businesses held for sale (Note 2) | 1,195 | 656 | |
Liabilities of discontinued operations (Note 2) | [1] | 911 | 4,158 |
Total Liabilities | 276,498 | 284,668 | |
Redeemable noncontrolling interests (Note 14) | 3,193 | 3,025 | |
Preferred stock (5,944,250 shares outstanding at both June 30, 2017 and December 31, 2016) | 6 | 6 | |
Common stock (8,657,946,000 and 8,742,614,000 shares outstanding at June 30, 2017 and December 31, 2016, respectively) | 702 | 702 | |
Accumulated other comprehensive income (loss) – net attributable to GE | |||
Investment securities | [2] | 866 | 674 |
Currency translation adjustments | [2] | (5,481) | (6,816) |
Cash flow hedges | [2] | 22 | 12 |
Benefit plans | [2] | (10,860) | (12,469) |
Other capital | [2] | 37,468 | 37,224 |
Retained earnings | [2] | 137,044 | 139,532 |
Less common stock held in treasury | [2] | (85,617) | (83,038) |
Total GE shareowners’ equity | [2] | 74,148 | 75,828 |
Noncontrolling interests (Note 14) | [3] | 1,634 | 1,663 |
Total equity | 75,783 | 77,491 | |
Total liabilities, redeemable noncontrolling interests and equity | 355,473 | 365,183 | |
GE | |||
Assets | |||
Cash and equivalents | [4] | 14,220 | 10,525 |
Investment securities (Note 3) | [4] | 162 | 137 |
Current receivables (Note 4) | [4] | 11,697 | 12,715 |
Inventories (Note 5) | [4] | 22,754 | 22,263 |
Financing receivables – net (Note 6) | [4] | 0 | 0 |
Other GE Capital receivables | [4] | 0 | 0 |
Property, plant and equipment – net (Note 7) | [4] | 19,593 | 19,103 |
Receivable from GE Capital (debt assumption) | [4],[5] | 48,216 | 58,780 |
Investment in GE Capital | [4] | 20,729 | 24,677 |
Goodwill (Note 8) | [4] | 69,966 | 68,070 |
Other intangible assets – net (Note 8) | [4] | 16,655 | 16,131 |
Contract assets (Note 9) | [4] | 28,924 | 25,162 |
All other assets | [4] | 13,411 | 12,007 |
Deferred income taxes, assets (Note 13) | [4] | 6,638 | 6,666 |
Assets of businesses held for sale (Note 2) | [4] | 3,816 | 1,629 |
Assets of discontinued operations (Note 2) | [4] | 0 | 9 |
Total assets | [4] | 276,782 | 277,874 |
Liabilities and equity | |||
Short-term borrowings (Note 10) | [4],[5] | 20,331 | 20,482 |
Accounts payable, principally trade accounts | [4] | 19,384 | 20,876 |
Progress collections and price adjustments accrued | [4] | 17,292 | 16,838 |
Dividends payable | [4] | 2,090 | 2,107 |
Other GE current liabilities | [4] | 16,755 | 17,564 |
Non-recourse borrowings of consolidated securitization entities (Note 10) | [4] | 0 | 0 |
Long-term borrowings (Note 10) | [4],[5] | 61,611 | 58,810 |
Investment contracts, insurance liabilities and insurance annuity benefits (Note 11) | [4] | 0 | 0 |
Non-current compensation and benefits | [4] | 41,573 | 42,770 |
All other liabilities | [4] | 17,838 | 17,506 |
Liabilities of businesses held for sale (Note 2) | [4] | 1,195 | 656 |
Liabilities of discontinued operations (Note 2) | [4] | 23 | 35 |
Total Liabilities | [4] | 198,091 | 197,644 |
Redeemable noncontrolling interests (Note 14) | [4] | 3,193 | 3,025 |
Preferred stock (5,944,250 shares outstanding at both June 30, 2017 and December 31, 2016) | [4] | 6 | 6 |
Common stock (8,657,946,000 and 8,742,614,000 shares outstanding at June 30, 2017 and December 31, 2016, respectively) | [4] | 702 | 702 |
Accumulated other comprehensive income (loss) – net attributable to GE | |||
Investment securities | [4] | 866 | 674 |
Currency translation adjustments | [4] | (5,481) | (6,816) |
Cash flow hedges | [4] | 22 | 12 |
Benefit plans | [4] | (10,860) | (12,469) |
Other capital | [4] | 37,468 | 37,224 |
Retained earnings | [4] | 137,044 | 139,532 |
Less common stock held in treasury | [4] | (85,617) | (83,038) |
Total GE shareowners’ equity | [4] | 74,148 | 75,828 |
Noncontrolling interests (Note 14) | [4] | 1,349 | 1,378 |
Total equity | [4] | 75,498 | 77,205 |
Total liabilities, redeemable noncontrolling interests and equity | [4] | 276,782 | 277,874 |
Financial Services (GE Capital) | |||
Assets | |||
Cash and equivalents | 29,829 | 37,604 | |
Investment securities (Note 3) | 39,809 | 44,180 | |
Current receivables (Note 4) | 0 | 0 | |
Inventories (Note 5) | 89 | 91 | |
Financing receivables – net (Note 6) | 24,696 | 26,041 | |
Other GE Capital receivables | 15,996 | 15,576 | |
Property, plant and equipment – net (Note 7) | 31,491 | 32,225 | |
Receivable from GE Capital (debt assumption) | [5] | 0 | 0 |
Investment in GE Capital | 0 | 0 | |
Goodwill (Note 8) | 2,369 | 2,368 | |
Other intangible assets – net (Note 8) | 275 | 305 | |
Contract assets (Note 9) | 0 | 0 | |
All other assets | 13,445 | 14,608 | |
Deferred income taxes, liabilities (Note 13) | (5,398) | (4,833) | |
Assets of businesses held for sale (Note 2) | 0 | 0 | |
Assets of discontinued operations (Note 2) | 7,850 | 14,806 | |
Total assets | 160,452 | 182,970 | |
Liabilities and equity | |||
Short-term borrowings (Note 10) | [5] | 23,373 | 23,443 |
Accounts payable, principally trade accounts | 1,723 | 1,605 | |
Progress collections and price adjustments accrued | 0 | 0 | |
Dividends payable | 0 | 0 | |
Other GE current liabilities | 0 | 0 | |
Non-recourse borrowings of consolidated securitization entities (Note 10) | 682 | 417 | |
Long-term borrowings (Note 10) | [5] | 78,852 | 93,443 |
Investment contracts, insurance liabilities and insurance annuity benefits (Note 11) | 27,016 | 26,546 | |
Non-current compensation and benefits | 1,040 | 1,001 | |
All other liabilities | 5,863 | 7,430 | |
Liabilities of businesses held for sale (Note 2) | 0 | 0 | |
Liabilities of discontinued operations (Note 2) | 888 | 4,123 | |
Total Liabilities | 139,438 | 158,008 | |
Redeemable noncontrolling interests (Note 14) | 0 | 0 | |
Preferred stock (5,944,250 shares outstanding at both June 30, 2017 and December 31, 2016) | 6 | 6 | |
Common stock (8,657,946,000 and 8,742,614,000 shares outstanding at June 30, 2017 and December 31, 2016, respectively) | 0 | 0 | |
Accumulated other comprehensive income (loss) – net attributable to GE | |||
Investment securities | 857 | 656 | |
Currency translation adjustments | (270) | (740) | |
Cash flow hedges | 10 | 43 | |
Benefit plans | (556) | (622) | |
Other capital | 12,737 | 12,669 | |
Retained earnings | 7,945 | 12,664 | |
Less common stock held in treasury | 0 | 0 | |
Total GE shareowners’ equity | 20,729 | 24,677 | |
Noncontrolling interests (Note 14) | 285 | 285 | |
Total equity | 21,014 | 24,962 | |
Total liabilities, redeemable noncontrolling interests and equity | $ 160,452 | $ 182,970 | |
[1] | Our consolidated assets at June 30, 2017 included total assets of $5,851 million of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs. These assets included current receivables and net financing receivables of $1,445 million and investment securities of $1,004 million within continuing operations and assets of discontinued operations of $285 million. Our consolidated liabilities at June 30, 2017 included liabilities of certain VIEs for which the VIE creditors do not have recourse to GE. These liabilities included non-recourse borrowings of consolidated securitization entities (CSEs) of $(682) million within continuing operations. See Note 17. | ||
[2] | The sum of accumulated other comprehensive income (loss) (AOCI) attributable to the Company was $(15,454) million and $(18,598) million at June 30, 2017 and December 31, 2016, respectively. | ||
[3] | Included AOCI attributable to noncontrolling interests of $(271) million and $(278) million at June 30, 2017 and December 31, 2016, respectively. | ||
[4] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. | ||
[5] | In 2015, senior unsecured notes and commercial paper were assumed by GE upon its merger with GE Capital, resulting in an intercompany receivable and payable between GE and GE Capital. See Note 10. |
STATEMENT OF FINANCIAL POSITIO6
STATEMENT OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares outstanding | 5,944,250 | 5,944,250 |
Common stock, shares outstanding | 8,657,946,000 | 8,742,614,000 |
Total assets of certain variable interest entities | $ 5,851 | |
Sum of accumulated other comprehensive income (loss) (AOCI) attributable to the Company | (15,454) | $ (18,598) |
AOCI attributable to noncontrolling interests | 75,783 | 77,491 |
Attributable to noncontrolling interests | ||
AOCI attributable to noncontrolling interests | (271) | $ (278) |
Current receivables and net financing receivables | ||
Total assets of certain variable interest entities | 1,445 | |
Investment securities | ||
Total assets of certain variable interest entities | 1,004 | |
Assets of discontinued operations | ||
Total assets of certain variable interest entities | 285 | |
Non-recourse borrowings of consolidated securitization entities (CSEs) | ||
Non-recourse borrowings of consolidated securitization entities (CSEs) within continuing operations | $ (682) |
STATEMENT OF CASH FLOWS
STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
Cash flows – operating activities | |||
Net earnings (loss) | $ 1,931 | $ 2,930 | |
Less net earnings (loss) attributable to noncontrolling interests | (90) | (207) | |
Net earnings (loss) attributable to the Company | 2,020 | 3,137 | |
(Earnings) loss from discontinued operations | 385 | 849 | |
Adjustments to reconcile net earnings (loss) attributable to the Company to cash provided from operating activities | |||
Depreciation and amortization of property, plant and equipment | 2,318 | 2,505 | |
(Earnings) loss from continuing operations retained by GE Capital | 0 | 0 | |
Deferred income taxes | (170) | 672 | |
Decrease (increase) in GE current receivables | 2,385 | 1,879 | |
Decrease (increase) in inventories | (598) | (2,629) | |
Increase (decrease) in accounts payable | (729) | 132 | |
Increase (decrease) in GE progress collections | (32) | 510 | |
All other operating activities | (2,190) | (5,040) | |
Cash from (used for) operating activities – continuing operations | 3,389 | 2,014 | |
Cash from (used for) operating activities – discontinued operations | (895) | (4,849) | |
Cash from (used for) operating activities | 2,494 | (2,835) | |
Cash flows – investing activities | |||
Additions to property, plant and equipment | (3,470) | (3,052) | |
Dispositions of property, plant and equipment | 2,343 | 1,222 | |
Net decrease (increase) in GE Capital financing receivables | 1,053 | (1,146) | |
Proceeds from sale of discontinued operations | 789 | 42,874 | |
Proceeds from principal business dispositions | 145 | 5,609 | |
Net cash from (payments for) principal businesses purchased | (2,643) | (206) | |
All other investing activities | 5,866 | (2,887) | |
Cash from (used for) investing activities – continuing operations | 4,083 | 42,414 | |
Cash from (used for) investing activities – discontinued operations | (1,922) | (10,646) | |
Cash from (used for) investing activities | 2,161 | 31,768 | |
Cash flows – financing activities | |||
Net increase (decrease) in borrowings (maturities of 90 days or less) | 812 | 758 | |
Newly issued debt (maturities longer than 90 days) | 9,036 | 855 | |
Repayments and other debt reductions (maturities longer than 90 days) | (13,905) | (45,467) | |
Net dispositions (purchases) of GE shares for treasury | (2,732) | (14,292) | |
Dividends paid to shareowners | (4,332) | (4,508) | |
All other financing activities | (968) | (109) | |
Cash from (used for) financing activities – continuing operations | (12,089) | (62,763) | |
Cash from (used for) financing activities – discontinued operations | 1,909 | (711) | |
Cash from (used for) financing activities | (10,181) | (63,474) | |
Effect of currency exchange rate changes on cash and equivalents | 538 | (24) | |
Increase (decrease) in cash and equivalents | (4,988) | (34,565) | |
Cash and equivalents at beginning of year | 49,558 | 90,878 | |
Cash and equivalents at June 30 | 44,571 | 56,313 | |
Less cash and equivalents of discontinued operations at June 30 | 522 | 4,190 | |
Cash and equivalents of continuing operations at June 30 | 44,049 | 52,123 | |
GE | |||
Cash flows – operating activities | |||
Net earnings (loss) | [1],[2] | 1,708 | 2,496 |
Less net earnings (loss) attributable to noncontrolling interests | [1],[2] | (96) | (199) |
Net earnings (loss) attributable to the Company | [1],[2] | 1,804 | 2,695 |
(Earnings) loss from discontinued operations | [1],[2] | 392 | 852 |
Adjustments to reconcile net earnings (loss) attributable to the Company to cash provided from operating activities | |||
Depreciation and amortization of property, plant and equipment | [1] | 1,192 | 1,300 |
(Earnings) loss from continuing operations retained by GE Capital | [1],[3] | 4,242 | 12,496 |
Deferred income taxes | [1] | (222) | 293 |
Decrease (increase) in GE current receivables | [1] | 929 | 280 |
Decrease (increase) in inventories | [1] | (592) | (2,623) |
Increase (decrease) in accounts payable | [1] | (1,001) | (30) |
Increase (decrease) in GE progress collections | [1] | 21 | 510 |
All other operating activities | [1] | (3,180) | (5,007) |
Cash from (used for) operating activities – continuing operations | [1] | 3,585 | 10,767 |
Cash from (used for) operating activities – discontinued operations | [1] | 0 | 0 |
Cash from (used for) operating activities | [1] | 3,585 | 10,767 |
Cash flows – investing activities | |||
Additions to property, plant and equipment | [1] | (2,135) | (1,940) |
Dispositions of property, plant and equipment | [1] | 749 | 539 |
Net decrease (increase) in GE Capital financing receivables | [1] | 0 | 0 |
Proceeds from sale of discontinued operations | [1] | 0 | 0 |
Proceeds from principal business dispositions | [1] | 145 | 4,836 |
Net cash from (payments for) principal businesses purchased | [1] | (2,643) | (206) |
All other investing activities | [1] | (800) | (1,054) |
Cash from (used for) investing activities – continuing operations | [1] | (4,684) | 2,175 |
Cash from (used for) investing activities – discontinued operations | [1] | 0 | 0 |
Cash from (used for) investing activities | [1] | (4,684) | 2,175 |
Cash flows – financing activities | |||
Net increase (decrease) in borrowings (maturities of 90 days or less) | [1] | 469 | 601 |
Newly issued debt (maturities longer than 90 days) | [1] | 12,780 | 5,126 |
Repayments and other debt reductions (maturities longer than 90 days) | [1] | (1,529) | (179) |
Net dispositions (purchases) of GE shares for treasury | [1] | (2,732) | (14,292) |
Dividends paid to shareowners | [1] | (4,184) | (4,324) |
All other financing activities | [1] | (271) | (186) |
Cash from (used for) financing activities – continuing operations | [1] | 4,533 | (13,256) |
Cash from (used for) financing activities – discontinued operations | [1] | 0 | 0 |
Cash from (used for) financing activities | [1] | 4,533 | (13,256) |
Effect of currency exchange rate changes on cash and equivalents | [1] | 261 | (127) |
Increase (decrease) in cash and equivalents | [1] | 3,695 | (440) |
Cash and equivalents at beginning of year | [1] | 10,525 | 10,372 |
Cash and equivalents at June 30 | [1] | 14,220 | 9,931 |
Less cash and equivalents of discontinued operations at June 30 | [1] | 0 | 0 |
Cash and equivalents of continuing operations at June 30 | [1] | 14,220 | 9,931 |
Financial Services (GE Capital) | |||
Cash flows – operating activities | |||
Net earnings (loss) | (392) | (1,911) | |
Less net earnings (loss) attributable to noncontrolling interests | 6 | (8) | |
Net earnings (loss) attributable to the Company | (398) | (1,903) | |
(Earnings) loss from discontinued operations | 388 | 849 | |
Adjustments to reconcile net earnings (loss) attributable to the Company to cash provided from operating activities | |||
Depreciation and amortization of property, plant and equipment | 1,127 | 1,191 | |
(Earnings) loss from continuing operations retained by GE Capital | [3] | 0 | 0 |
Deferred income taxes | 52 | 379 | |
Decrease (increase) in GE current receivables | 0 | 0 | |
Decrease (increase) in inventories | (9) | 6 | |
Increase (decrease) in accounts payable | (117) | 10 | |
Increase (decrease) in GE progress collections | 0 | 0 | |
All other operating activities | 921 | (91) | |
Cash from (used for) operating activities – continuing operations | 1,964 | 440 | |
Cash from (used for) operating activities – discontinued operations | (894) | (4,848) | |
Cash from (used for) operating activities | 1,069 | (4,408) | |
Cash flows – investing activities | |||
Additions to property, plant and equipment | (1,704) | (1,264) | |
Dispositions of property, plant and equipment | 1,829 | 865 | |
Net decrease (increase) in GE Capital financing receivables | 2,824 | 1,191 | |
Proceeds from sale of discontinued operations | 789 | 42,874 | |
Proceeds from principal business dispositions | 0 | 0 | |
Net cash from (payments for) principal businesses purchased | 0 | 0 | |
All other investing activities | 4,119 | (6,345) | |
Cash from (used for) investing activities – continuing operations | 7,857 | 37,321 | |
Cash from (used for) investing activities – discontinued operations | (1,922) | (10,646) | |
Cash from (used for) investing activities | 5,935 | 26,675 | |
Cash flows – financing activities | |||
Net increase (decrease) in borrowings (maturities of 90 days or less) | 332 | 31 | |
Newly issued debt (maturities longer than 90 days) | 356 | 715 | |
Repayments and other debt reductions (maturities longer than 90 days) | (13,705) | (45,288) | |
Net dispositions (purchases) of GE shares for treasury | 0 | 0 | |
Dividends paid to shareowners | (4,164) | (11,184) | |
All other financing activities | (692) | (57) | |
Cash from (used for) financing activities – continuing operations | (17,872) | (55,783) | |
Cash from (used for) financing activities – discontinued operations | 1,909 | (711) | |
Cash from (used for) financing activities | (15,964) | (56,494) | |
Effect of currency exchange rate changes on cash and equivalents | 277 | 103 | |
Increase (decrease) in cash and equivalents | (8,683) | (34,124) | |
Cash and equivalents at beginning of year | 39,033 | 80,506 | |
Cash and equivalents at June 30 | 30,351 | 46,382 | |
Less cash and equivalents of discontinued operations at June 30 | 522 | 4,190 | |
Cash and equivalents of continuing operations at June 30 | $ 29,829 | $ 42,192 | |
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. | ||
[2] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. | ||
[3] | Represents GE Capital earnings/loss from continuing operations attributable to the Company, net of GE Capital dividends paid to GE. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The accompanying consolidated financial statements represent the consolidation of General Electric Company (the Company) and all companies that we directly or indirectly control, either through majority ownership or otherwise. See Note 1 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2016 that discusses our consolidation and financial statement presentation. As used in this report on Form 10-Q (Report), “GE” represents the adding together of all affiliated companies except GE Capital (GE Capital or Financial Services), whose continuing operations are presented on a one-line basis; GE Capital consists of General Capital Global Holdings, LLC (GECGH) and all of its affiliates; and “Consolidated” represents the adding together of GE and GE Capital with the effects of transactions between the two eliminated. Unless otherwise indicated, we refer to the caption revenues and other income simply as “revenues” throughout this Form 10-Q. We have reclassified certain prior-period amounts to conform to the current-period presentation. Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in millions. Unless otherwise indicated, information in these notes to the consolidated financial statements relates to continuing operations. INTERIM PERIOD PRESENTATION The consolidated financial statements and notes thereto are unaudited. These statements include all adjustments (consisting of normal recurring accruals) that we considered necessary to present a fair statement of our results of operations, financial position and cash flows. The results reported in these consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. It is suggested that these consolidated financial statements be read in conjunction with the financial statements and notes thereto included in our consolidated financial statements of our Annual Report on Form 10-K for the year ended December 31, 2016. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Please refer to Note 1, Basis of Presentation and Summary of Significant Accounting Policies, to the consolidated financial statements of our 2016 Form 10-K Report for the discussion of our significant accounting policies. ACCOUNTING CHANGES On January 1, 2017, we adopted ASU 2015-11, Simplifying the Measurement of Inventory , which was intended to simplify the subsequent measurement of inventory held by an entity not measured using last-in, first-out (LIFO) or retail inventory method. The amendments eliminated the requirement that entities consider the replacement cost of inventory and the net realizable value less a normal profit margin, which was historically used to establish a floor and ceiling for an assessment of market value. The adoption of this standard was immaterial to our financial statements. On September 30, 2016, we adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which was intended to simplify several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. We adopted the standard on a prospective basis with the effect of adoption reflected for the interim periods after the year beginning January 1, 2016 as required by the standard. The primary effects of adoption were the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital and the reclassification of cash flows related to excess tax benefits from a financing activity to an operating activity for the periods beginning January 1, 2016. We will continue to estimate the number of awards that are expected to vest in our determination of the related periodic compensation cost. As a result of the adoption, our provision for income taxes decreased by $41 million and $97 million for the three and nine months ended September 30, 2016, respectively for the excess tax benefits related to share-based payments in its provision for income taxes. Application of the cash flow presentation requirements from January 1, 2016, resulted in an increase in cash from operating activities and an offsetting decrease in cash from financing activities of $59 million and $137 million for the three and nine months ended September 30, 2016, respectively. Additionally, as the adoption of the standard was reflected as of the beginning of 2016, the benefit for income taxes increased $ 19 million and $56 million for the three and six months ended June 30, 2016 , respectively, and cash flow from operating activities increased by $ 78 million with an offsetting decrease in cash from financing activities for the six months ended June 30, 2016 . |
BUSINESSES HELD FOR SALE AND DI
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS | BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE In the first quarter of 2017, we classified our Industrial Solutions business within our Energy Connections & Lighting segment with assets of $2,120 million and liabilities of $ 546 million, as held for sale. We expect to complete the sale of the business by the end of the first quarter of 2018. In the fourth quarter of 2016, we classified our Water business within our Power segment with assets of $1,696 million and liabilities of $ 648 million, as held for sale. In March 2017, we signed an agreement with Suez Environnement S.A. (Suez) to sell the business for $ 3,415 million. The deal is expected to close in the second half of 2017, subject to customary closing conditions and regulatory approval. FINANCIAL INFORMATION FOR ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE (In millions) June 30, 2017 December 31, 2016 Assets Current receivables(a) $ 698 $ 366 Inventories 579 211 Property, plant, and equipment – net 1,034 632 Goodwill 1,258 212 Other intangible assets – net 237 123 Contract assets 195 125 Other 96 76 Assets of businesses held for sale $ 4,096 $ 1,745 Liabilities Accounts payable $ 394 $ 190 Progress collections and price adjustments accrued 155 141 Other current liabilities 264 133 Non-current compensation and benefits 219 82 Other 162 110 Liabilities of businesses held for sale $ 1,195 $ 656 (a) Included transactions in our industrial businesses that were made on an arms-length basis with GE Capital, consisting of GE customer receivables sold to GE Capital of $ 280 million and $ 117 million at June 30, 2017 and December 31, 2016 , respectively. These intercompany balances included within our held for sale businesses are reported in the GE and GE Capital columns of our financial statements, but are eliminated in deriving our consolidated financial statements. DISCONTINUED OPERATIONS Discontinued operations primarily relate to our financial services businesses as a result of the GE Capital Exit Plan and includes our U.S. mortgage business (WMC). All of these operations were previously reported in the Capital segment. Results of operations, financial position and cash flows for these businesses are separately reported as discontinued operations for all periods presented. We have entered into Transitional Service Agreements (TSA) with and provided certain indemnifications to buyers of GE Capital’s assets. Under the TSAs, GE Capital provides various services for terms generally between 12 and 24 months and receives a level of cost reimbursement from the buyers. See Note 18 for further information about indemnifications. FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Operations Total revenues and other income (loss) $ 9 $ 568 $ 88 $ 1,861 Earnings (loss) from discontinued operations before income taxes $ (216 ) $ (240 ) $ (412 ) $ (160 ) Benefit (provision) for income taxes (a) 66 170 128 182 Earnings (loss) from discontinued operations, net of taxes $ (150 ) $ (70 ) $ (284 ) $ 22 Disposal Gain (loss) on disposal before income taxes $ 8 $ (295 ) $ (19 ) $ (540 ) Benefit (provision) for income taxes (a) (3 ) (177 ) (81 ) (331 ) Gain (loss) on disposal, net of taxes $ 4 $ (472 ) $ (100 ) $ (871 ) Earnings (loss) from discontinued operations, net of taxes(b)(c) $ (146 ) $ (541 ) $ (385 ) $ (849 ) (a) GE Capital's total tax benefit (provision) for discontinued operations and disposals included current tax benefit (provision) of $253 million and $(47) million for the three months ended June 30, 2017 and 2016 , respectively, and $(323) million and $(881) million for the six months ended June 30, 2017 and 2016 , respectively, including current U.S. Federal tax benefit (provision) of $68 million and $29 million for the three months ended June 30, 2017 and 2016 , respectively, and $(519) million and $(471) million for the six months ended June 30, 2017 and June 30, 2016, respectively. The deferred tax benefit (provision) was $(190) million and $40 million for the three months ended June 30, 2017 and 2016 , respectively, and $370 million and $732 million for the six months ended June 30, 2017 and June 30, 2016, respectively. (b) The sum of GE Industrial earnings (loss) from discontinued operations, net of taxes, and GE Capital earnings (loss) from discontinued operations, net of taxes, after adjusting for earnings (loss) attributable to noncontrolling interests related to discontinued operations, is reported within earnings (loss) from discontinued operations, net of taxes, in the GE Industrial column of the Consolidated Statement of Earnings (Loss). (c) Earnings (loss) from discontinued operations attributable to the Company, before income taxes, was $(215) million and $(537) million for the three months ended June 30, 2017 and 2016 , respectively, and $(438) million and $(703) million for the six months ended June 30, 2017 and 2016, respectively. (In millions) June 30, 2017 December 31, 2016 Assets Cash and equivalents $ 522 $ 1,429 Investment securities 1,729 2,626 Deferred income taxes 950 487 Financing receivables held for sale 3,711 8,547 Other assets 938 1,727 Assets of discontinued operations $ 7,850 $ 14,815 Liabilities Accounts payable 87 164 Borrowings — 2,076 Other liabilities 825 1,918 Liabilities of discontinued operations $ 911 $ 4,158 |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES Substantially all of our investment securities are classified as available-for-sale and comprise mainly investment-grade debt securities supporting obligations to annuitants and policyholders in our run-off insurance operations. We do not have any securities classified as held-to-maturity. June 30, 2017 December 31, 2016 (In millions) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value (a) Amortized Gross Gross Estimated (a) Debt U.S. corporate $ 20,129 $ 3,550 $ (50 ) $ 23,629 $ 20,049 $ 3,081 $ (85 ) $ 23,046 Non-U.S. corporate 7,106 95 (19 ) 7,182 11,917 98 (27 ) 11,987 State and municipal 3,934 504 (67 ) 4,371 3,916 412 (92 ) 4,236 Mortgage and asset-backed 2,738 103 (20 ) 2,821 2,787 111 (37 ) 2,861 Government and agencies 1,664 99 (2 ) 1,761 1,842 160 (26 ) 1,976 Equity (b) 171 34 (2 ) 204 154 55 (1 ) 208 Total $ 35,743 $ 4,384 $ (159 ) $ 39,968 $ 40,665 $ 3,917 $ (269 ) $ 44,313 (a) Includes $162 million and $137 million of investment securities held by GE at June 30, 2017 and December 31, 2016, respectively, of which $107 million and $86 million are equity securities. (b) Estimated fair values include $75 million and $17 million of trading securities at June 30, 2017 and December 31, 2016, respectively. Net unrealized gains (losses) recorded to earnings related to these securities were $29 million and an insignificant amount for the three months ended and $29 million and $(2) million for the six months ended June 30, 2017 and 2016, respectively. Investments with a fair value of $4,206 million and $4,406 million were classified within Level 3 (significant inputs to the valuation model are unobservable) at June 30, 2017 and December 31, 2016, respectively. The remaining investments are substantially all classified within Level 2 (determined based on significant observable inputs). During the six months ended June 30, 2017 and 2016, there were no significant transfers into or out of Level 3. ESTIMATED FAIR VALUE AND GROSS UNREALIZED LOSSES OF AVAILABLE-FOR-SALE INVESTMENT SECURITIES In loss position for Less than 12 months 12 months or more (In millions) Estimated fair value Gross unrealized losses Estimated Gross June 30, 2017 Debt U.S. corporate $ 957 $ (39 ) $ 233 $ (11 ) Non-U.S. corporate 5,102 (15 ) 12 (4 ) State and municipal 210 (15 ) 156 (52 ) Mortgage and asset-backed 856 (18 ) 42 (2 ) Government and agencies 437 (2 ) — — Equity 9 (2 ) — — Total $ 7,571 $ (90 ) $ 443 $ (69 ) December 31, 2016 Debt U.S. corporate $ 1,692 $ (55 ) $ 359 $ (30 ) Non-U.S. corporate 5,352 (26 ) 14 (1 ) State and municipal 674 (27 ) 158 (64 ) Mortgage and asset-backed 822 (21 ) 132 (16 ) Government and agencies 549 (26 ) — — Equity 9 (1 ) — — Total $ 9,098 $ (157 ) $ 663 $ (111 ) Unrealized losses are not indicative of the amount of credit loss that would be recognized and at June 30, 2017 are primarily due to increases in market yields subsequent to our purchase of the securities. We presently do not intend to sell the vast majority of our debt securities that are in an unrealized loss position and believe that it is not more likely than not that we will be required to sell the vast majority of these securities before anticipated recovery of our amortized cost. The methodologies and significant inputs used to measure the amount of credit loss for our investment securities during 2017 have not changed. Total pre-tax, other-than-temporary impairments on investment securities recognized in earnings were an insignificant amount and $18 million for the six months ended June 30, 2017 and 2016, respectively. CONTRACTUAL MATURITIES OF INVESTMENT IN AVAILABLE-FOR-SALE DEBT SECURITIES (EXCLUDING MORTGAGE AND ASSET-BACKED SECURITIES) (In millions) Amortized cost Estimated fair value Due Within one year $ 5,902 $ 5,900 After one year through five years 4,255 4,449 After five years through ten years 5,209 5,704 After ten years 17,468 20,890 We expect actual maturities to differ from contractual maturities because borrowers have the right to call or prepay certain obligations. Although we generally do not have the intent to sell any specific securities at the end of the period, in the ordinary course of managing our investment securities portfolio, we may sell securities prior to their maturities for a variety of reasons, including diversification, credit quality, yield and liquidity requirements and the funding of claims and obligations to policyholders. Gross realized gains on available-for-sale investment securities were $37 million and $36 million , and gross realized losses were $(2) million and $(11) million in the three months ended June 30, 2017 and 2016, respectively. Gross realized gains on available-for-sale investment securities were $143 million and $42 million , and gross realized losses were $(4) million and $(40) million in the six months ended June 30, 2017 and 2016, respectively. Proceeds from investment securities sales and early redemptions by issuers totaled $701 million and $624 million in the three months ended June 30, 2017 and 2016, respectively primarily from sales of U.S. Corporate and Mortgage and asset-backed securities and $1,774 million and $868 million in the six months ended June 30, 2017 and 2016, respectively primarily from sales of Government and agencies and U.S. corporate securities. |
CURRENT RECEIVABLES
CURRENT RECEIVABLES | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
CURRENT RECEIVABLES | CURRENT RECEIVABLES Consolidated(a)(b) GE(c) (In millions) June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 Current receivables $ 22,407 $ 24,935 $ 12,647 $ 13,562 Allowance for losses (960 ) (858 ) (949 ) (847 ) Total $ 21,447 $ 24,076 $ 11,697 $ 12,715 (a) Included GE industrial customer receivables sold to a GE Capital affiliate and recorded on GE Capital’s balance sheet of $ 10,599 million and $ 12,304 million at June 30, 2017 and December 31, 2016 , respectively. The consolidated total included a deferred purchase price receivable of $ 374 million and $ 483 million at June 30, 2017 and December 31, 2016 , respectively, related to our Receivables Facility. (b) In order to manage the credit exposure, the Company sells additional current receivables to third parties outside the Receivables Facility, substantially all of which are serviced by the Company. The outstanding balance of these current receivables was $ 2,532 million and $ 3,821 million at June 30, 2017 and December 31, 2016 , respectively. Of these balances, $ 1,187 million and $ 2,504 million was sold by GE to GE Capital prior to the sale to third parties at June 30, 2017 and December 31, 2016 , respectively. At June 30, 2017 and December 31, 2016 , our maximum exposure to loss under the limited recourse arrangements is $ 143 million and $ 215 million, respectively. (c) GE current receivables balances at June 30, 2017 and December 31, 2016 , before allowance for losses, included $ 7,955 million and $ 8,927 million, respectively, from sales of goods and services to customers. The remainder of the balances primarily relates to supplier advances, revenue sharing programs and other non-income based tax receivables. RECEIVABLES FACILITY The Company has a $ 3,000 million revolving Receivables Facility under which receivables are sold directly to third-party purchasers. The third-party purchasers have no recourse to other assets of the Company in the event of non-payment by the debtors. Where the purchasing entity is a bank multi-seller commercial paper conduit, assets transferred by other parties to that entity form a majority of the entity’s assets. Upon sale of the receivables, we receive proceeds of cash and a deferred purchase price (DPP). The DPP is an interest in specified assets of the purchasers (the receivables sold by GE Capital) that entitles GE Capital to the residual cash flows of those specified assets. During the six months ended June 30, 2017 , GE Industrial sold current receivables of $ 9,667 million to GE Capital, which GE Capital sold immediately to third parties under the Receivables Facility. GE Capital continues to service the current receivables for the purchasers. The Company received total cash collections of $ 9,309 million on previously sold current receivables owed to the purchasing entities. The purchasing entities reinvested $ 8,036 million of those collections to purchase newly originated current receivables from the Company and paid $ 297 million to reduce their DPP obligation to the Company. During the six months ended June 30, 2017, GE Industrial recognized a loss of $64 million resulting from time value discount on the sale of these receivables to GE Capital. GE Capital recovered substantially all of this loss on the sale of the receivables to third party purchasers. At June 30, 2017 , GE Capital, under the Receivables Facility, serviced $ 2,933 million of transferred receivables that remain outstanding. Given the short-term nature of the underlying receivables, discount rates and prepayments are not factors in determining the value of the DPP. Collections on the DPP are presented within Cash flows from operating activities in the consolidated column in the Statement of Cash Flows. As the performance of the transferred current receivables is similar to the performance of our other current receivables, delinquencies are not expected to be significant. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES (In millions) June 30, 2017 December 31, 2016 Raw materials and work in process $ 12,830 $ 12,636 Finished goods 9,110 8,798 Unbilled shipments 427 536 22,367 21,971 Revaluation to LIFO 476 383 Total inventories $ 22,843 $ 22,354 |
GE CAPITAL FINANCING RECEIVABLE
GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES | GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES FINANCING RECEIVABLES, NET (In millions) June 30, 2017 December 31, 2016 Loans, net of deferred income $ 19,790 $ 21,101 Investment in financing leases, net of deferred income 4,973 4,998 24,764 26,099 Allowance for losses (68 ) (58 ) Financing receivables – net $ 24,696 $ 26,041 We manage our financing receivables portfolio using delinquency and nonaccrual data as key performance indicators. At June 30, 2017 , $752 million ( 3.0% ), $351 million ( 1.4% ) and $425 million ( 1.7% ) of financing receivables were over 30 days past due, over 90 days past due and on nonaccrual, respectively. Of the $425 million of nonaccrual financing receivables at June 30, 2017 , the vast majority are secured by collateral and $290 million are currently paying in accordance with the contractual terms. At December 31, 2016 , $811 million ( 3.1% ), $407 million ( 1.6% ) and $322 million ( 1.2% ) of financing receivables were over 30 days past due, over 90 days past due and on nonaccrual, respectively. The recorded investment in impaired loans at June 30, 2017 and December 31, 2016 was $387 million and $262 million , respectively. The method used to measure impairment for these loans is primarily based on collateral value. At June 30, 2017 , troubled debt restructurings included in impaired loans were $150 million . |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT (In millions) June 30, 2017 December 31, 2016 Original cost $ 86,320 $ 85,875 Less accumulated depreciation and amortization (36,153 ) (35,356 ) Property, plant and equipment – net $ 50,167 $ 50,518 Consolidated depreciation and amortization on property, plant and equipment was $1,125 million and $1,294 million in the three months ended June 30, 2017 and 2016 , respectively and $2,318 million and $2,505 million million in the six months ended June 30, 2017 and 2016 , respectively. |
ACQUISITIONS, GOODWILL AND OTHE
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS | ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS ACQUISITIONS On October 11, 2016 , we announced a plan to acquire LM Wind Power, the Danish maker of rotor blades for approximately $1,700 million. The transaction closed on April 20, 2017. The preliminary purchase price allocation resulted in goodwill of approximately $1,200 million and amortizable intangible assets of approximately $200 million. The allocation of the purchase price will be finalized upon completion of post-closing procedures. In the first quarter of 2017, we acquired the remaining 96% of ServiceMax, a leader in cloud-based field service management solutions, for $ 866 million, net of cash acquired of $ 91 million. Upon gaining control, we fair valued the business including our previously held 4% equity interest. The preliminary purchase price allocation resulted in goodwill of approximately $ 670 million and amortizable intangible assets of approximately $ 280 million. The allocation of the purchase price will be finalized upon completion of post-closing procedures. On May 10, 2016 , we announced the pending acquisition of the heat recovery steam generator (HRSG) business from Doosan Engineering & Construction (Doosan) for $250 million . On August 16, 2016 , we closed on 80% of the HRSG business for approximately $220 million . On May 23, 2017, we closed an additional 15% of the remaining HRSG business for approximately $ 35 million. The remaining 5% of the HRSG business continues to be subject to local regulatory requirements. The preliminary purchase price allocation resulted in goodwill of approximately $170 million and amortizable intangible assets of approximately $35 million . The allocation of the purchase price will be finalized upon completion of post-closing procedures. BAKER HUGHES On July 3, 2017, GE completed the previously announced combination of GE’s Oil & Gas business (GE Oil & Gas) with Baker Hughes Incorporated (Baker Hughes). As part of the transaction, GE contributed GE Oil & Gas and $7,400 million in cash in exchange for 62.5% of the ownership interest in the new combined company. The operating assets of the new combined company are held through a partnership named Baker Hughes, a GE company, LLC (BHGE LLC). GE holds a 62.5% economic interest in this partnership, and Baker Hughes’ former shareholders hold a 37.5% interest through a newly NYSE listed corporation, Baker Hughes, a GE company (BHGE), which controls the partnership. In turn, GE holds a controlling, 62.5% voting interest in BHGE through Class B Common Stock in BHGE, which grants voting rights but no economic rights. Baker Hughes’ former shareholders received one share of BHGE Class A Common Stock and a special one-time cash dividend of $17.50 per share at closing. Total consideration was $24,778 million , including the $7,400 million cash contribution. The Baker Hughes transaction will be accounted for as a business combination, using the acquisition method. The net assets of Baker Hughes’ contributed businesses will be recorded at their estimated fair value, and GE Oil & Gas will continue at its historical or carryover basis. We will record noncontrolling interest for the 37.5% interest in the combined company of the holders of BHGE’s Class A Common Stock at fair value for the portion attributable to the net assets we acquired, and at our historical cost for the portion attributable to GE Oil & Gas. Due to the limited time since the acquisition date and limitations on the access to Baker Hughes information prior to close, the initial accounting for the business combination is not yet complete, and we are not yet able to provide amounts recognized as of the acquisition date for major classes of assets and liabilities acquired or the supplemental pro forma revenue and earnings of the combined entity. We will include disclosure of our preliminary estimates in our Quarterly Report on Form 10-Q for the nine months ended September 30, 2017. During the three and six months ended June 30, 2017, acquisition costs of $59 million and $110 million , respectively, were expensed as incurred and were reported as selling, general and administrative expenses. GOODWILL CHANGES IN GOODWILL BALANCES (In millions) Balance at January 1, 2017 Acquisitions (a) Dispositions, currency exchange and other Balance at Power $ 19,816 $ 50 $ 237 $ 20,103 Renewable Energy 2,507 1,165 126 3,799 Oil & Gas 10,363 — 93 10,457 Aviation 9,455 16 269 9,739 Healthcare 17,424 47 38 17,509 Transportation 899 — 7 906 Energy Connections & Lighting 6,868 — (859 ) 6,009 Capital 2,368 — 1 2,369 Corporate 739 688 19 1,446 Total $ 70,438 $ 1,965 $ (69 ) $ 72,335 Goodwill balances increased by $1,897 million in 2017, primarily as a result of the acquisition of LM Wind Power and ServiceMax and the currency exchange effects of a weaker U.S. dollar against other major currencies, partially offset by the reclassification of goodwill associated with Industrial Solutions to assets of businesses held for sale. OTHER INTANGIBLE ASSETS OTHER INTANGIBLE ASSETS - NET (In millions) June 30, 2017 December 31, 2016 Intangible assets subject to amortization $ 16,839 $ 16,336 Indefinite-lived intangible assets(a) 90 100 Total $ 16,929 $ 16,436 (a) Indefinite-lived intangible assets principally comprise trademarks and in-process research and development. INTANGIBLE ASSETS SUBJECT TO AMORTIZATION June 30, 2017 December 31, 2016 (In millions) Gross carrying amount Accumulated amortization Net Gross carrying amount Accumulated amortization Net Customer-related $ 9,446 $ (2,742 ) $ 6,704 $ 9,172 $ (2,408 ) $ 6,764 Patents and technology 9,461 (3,502 ) 5,959 8,693 (3,325 ) 5,368 Capitalized software 7,939 (4,806 ) 3,135 7,652 (4,538 ) 3,114 Trademarks 1,209 (365 ) 843 1,165 (307 ) 858 Lease valuations 129 (69 ) 59 143 (59 ) 84 Present value of future profits(a) 701 (701 ) — 684 (684 ) — All other 239 (99 ) 140 273 (124 ) 149 Total $ 29,124 $ (12,284 ) $ 16,839 $ 27,781 $ (11,444 ) $ 16,336 (a) Balances at June 30, 2017 and December 31, 2016 include adjustments of $ 227 million and $ 241 million, respectively, to the present value of future profits in our run-off insurance activities to reflect the effects that would have been recognized had the related unrealized investment securities holding net gains actually been realized. Intangible assets subject to amortization increased by $ 503 million in the six months ended June 30, 2017 , primarily as a result of the acquisition of LM Wind Power and ServiceMax, partially offset by amortization. GE amortization expense related to intangible assets subject to amortization was $ 407 million and $ 450 million in the three months ended June 30, 2017 and 2016 , respectively, and $ 811 million and $ 896 million for the six months ended June 30, 2017 and 2016, respectively. GE Capital amortization expense related to intangible assets subject to amortization was $ 14 million and $ 37 million in the three months ended June 30, 2017 and 2016 , respectively, and $ 34 million and $ 70 million for the six months ended June 30, 2017 and 2016, respectively. |
CONTRACT ASSETS
CONTRACT ASSETS | 6 Months Ended |
Jun. 30, 2017 | |
Contractors [Abstract] | |
CONTRACT ASSETS | CONTRACT ASSETS (In millions) June 30, 2017 December 31, 2016 GE Revenues in excess of billings Long-term product service agreements(a) $ 14,764 $ 12,752 Long-term equipment contract revenues(b) 6,774 5,859 Total revenues in excess of billings 21,538 18,611 Deferred inventory costs(c) 4,040 3,349 Non-recurring engineering costs(d) 2,295 2,185 Other 1,051 1,018 Contract assets $ 28,924 $ 25,162 (a) Long-term product service agreement balances are presented net of related billings in excess of revenues of $2,679 million and $3,750 million at June 30, 2017 and December 31, 2016 , respectively. (b) Reflects revenues earned in excess of billings on our long-term contracts to construct technically complex equipment (such as gas power systems). (c) Represents cost deferral for shipped goods (such as components for wind turbine assembly within our Renewable Energy segment) and other costs for which the revenue recognition criteria has not yet been met. (d) Includes costs incurred prior to production (such as requisition engineering) for long-term equipment production contracts, primarily within our Aviation segment, which are allocated ratably to each unit produced. |
BORROWINGS
BORROWINGS | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS (In millions) June 30, 2017 December 31, 2016 Short-term borrowings GE Commercial paper $ 2,000 $ 1,500 Current portion of long-term borrowings 16,120 17,109 Other 2,211 1,874 Total GE short-term borrowings(a) 20,331 20,482 GE Capital U.S. Commercial paper 5,012 5,002 Current portion of long-term borrowings(b) 5,869 6,517 Intercompany payable to GE(c) 11,923 11,696 Other 569 229 Total GE Capital short-term borrowings 23,373 23,443 Eliminations(c) (13,660 ) (13,212 ) Total short-term borrowings $ 30,044 $ 30,714 Long-term borrowings GE Senior notes $ 56,699 $ 54,396 Subordinated notes 2,835 2,768 Subordinated debentures(e) 740 719 Other 1,337 928 Total GE long-term borrowings(a) 61,611 58,810 GE Capital Senior notes 40,927 44,131 Subordinated notes 218 236 Intercompany payable to GE(d) 36,293 47,084 Other(b) 1,414 1,992 Total GE Capital long-term borrowings 78,852 93,443 Eliminations(d) (36,786 ) (47,173 ) Total long-term borrowings $ 103,676 $ 105,080 Non-recourse borrowings of consolidated securitization entities(f) $ 682 $ 417 Total borrowings $ 134,402 $ 136,210 (a) Excluding assumed debt of GE Capital, the total amount of GE borrowings was $33,725 million and $20,512 million at June 30, 2017 and December 31, 2016 , respectively. (b) Included $1,781 million and $2,665 million of funding secured by aircraft and other collateral at June 30, 2017 and December 31, 2016 , respectively, of which $591 million and $1,419 million is non-recourse to GE Capital at June 30, 2017 and December 31, 2016 , respectively. (c) I ncluded a reduction of zero and $1,329 million for short-term intercompany loans from GE Capital to GE at June 30, 2017 and December 31, 2016 , respectively, which bear the right of offset against amounts owed under the assumed debt agreement. Excluding intercompany loans, total short-term assumed debt was $11,923 million and $13,024 million at June 30, 2017 and December 31, 2016 , respectively. The remaining short-term loan balance was paid in January 2017. (d) Included a reduction of $4,075 million and zero for long-term intercompany loans from GE Capital to GE at June 30, 2017 and December 31, 2016 , respectively, which bear the right of offset against amounts owed under the assumed debt agreement. Excluding intercompany loans, total long-term assumed debt was $40,368 million and $47,084 million at June 30, 2017 and December 31, 2016 , respectively. The $4,075 million of intercompany loans collectively have a weighted average interest rate of 3.6% and term of approximately 15 years. (e) Comprises subordinated debentures which constitute the sole assets of trusts that have issued trust preferred securities and where GE owns 100% of the common securities of the trusts. Obligations associated with these trusts are unconditionally guaranteed by GE. (f) Included $528 million and $320 million of current portion of long-term borrowings at June 30, 2017 and December 31, 2016 , respectively. See Note 17. During the second quarter of 2017, GE completed issuances of €8,000 million senior unsecured debt, composed of €1,750 million of 0.375% Notes due 2022, €2,000 million of 0.875% Notes due 2025, €2,250 million of 1.50% Notes due 2029 and €2,000 million of 2.125% Notes due 2037. On April 10, 2015, GE provided a full and unconditional guarantee on the payment of the principal and interest on all tradable senior and subordinated outstanding long-term debt securities and all commercial paper issued or guaranteed by GE Capital. $92,537 million of such debt was assumed by GE on December 2, 2015 upon its merger with GE Capital resulting in an intercompany payable to GE. At June 30, 2017 , the Guarantee applies to $44,077 million of GE Capital debt. See Notes 16 and 21 for additional information about borrowings and associated swaps. |
INVESTMENT CONTRACTS, INSURANCE
INVESTMENT CONTRACTS, INSURANCE LIABILITIES AND INSURANCE ANNUITY BENEFITS | 6 Months Ended |
Jun. 30, 2017 | |
Insurance [Abstract] | |
INVESTMENT CONTRACTS, INSURANCE LIABILITIES AND INSURANCE ANNUITY BENEFITS | INVESTMENT CONTRACTS, INSURANCE LIABILITIES AND INSURANCE ANNUITY BENEFITS Insurance and investment contract liabilities comprise mainly obligations to policyholders and annuitants in our run-off insurance activities. (In millions) June 30, 2017 December 31, 2016 Future policy benefit reserves(a) $ 19,105 $ 18,741 Investment contracts 2,671 2,813 Other(b) 5,241 4,992 27,016 26,546 Eliminations (545) (460) Total $ 26,471 $ 26,086 (a) The future policy benefit reserve is subject to an annual review to determine its adequacy. Should the liability for future policy benefits plus the present value of expected future gross premiums be insufficient to provide for the present value of expected future policy benefits and expenses, a premium deficiency would be recorded. (b) Substantially all unpaid claims and claims adjustment expenses and unearned premiums. See Notes 1 and 11 of the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2016 for further information. |
POSTRETIREMENT BENEFIT PLANS
POSTRETIREMENT BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
POSTRETIREMENT BENEFIT PLANS | POSTRETIREMENT BENEFIT PLANS We sponsor a number of pension and retiree health and life insurance benefit plans. Principal pension plans are the GE Pension Plan and the GE Supplementary Pension Plan. Principal retiree benefit plans provide health and life insurance benefits to certain eligible participants and these participants share in the cost of the healthcare benefits. Other pension plans include the U.S. and non-U.S. pension plans with pension assets or obligations greater than $50 million . Smaller pension plans and other retiree benefit plans are not material individually or in the aggregate. EFFECT ON OPERATIONS OF PENSION PLANS Principal pension plans Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Service cost for benefits earned $ 254 $ 291 $ 543 $ 606 Prior service cost amortization 72 76 145 152 Expected return on plan assets (849 ) (836 ) (1,698 ) (1,670 ) Interest cost on benefit obligations 712 735 1,429 1,469 Net actuarial loss amortization 697 612 1,407 1,224 Curtailment loss (gain) — (1 ) 43 (a) (1 ) Pension plans cost $ 886 $ 877 $ 1,869 $ 1,780 (a) Curtailment loss resulting from our intent to sell the Industrial Solutions business within our Energy Connections & Lighting segment. Other pension plans Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Service cost for benefits earned $ 123 $ 118 $ 274 $ 231 Prior service credit amortization (1 ) — (2 ) (1 ) Expected return on plan assets (301 ) (259 ) (595 ) (522 ) Interest cost on benefit obligations 145 168 287 340 Net actuarial loss amortization 107 65 210 129 Pension plans cost $ 73 $ 92 $ 174 $ 177 EFFECT ON OPERATIONS OF PRINCIPAL RETIREE BENEFIT PLANS Principal retiree benefit plans Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Service cost for benefits earned $ 26 $ 27 $ 52 $ 52 Prior service credit amortization (43 ) (41 ) (86 ) (82 ) Expected return on plan assets (9 ) (11 ) (18 ) (22 ) Interest cost on benefit obligations 56 63 113 126 Net actuarial gain amortization (20 ) (14 ) (41 ) (27 ) Curtailment loss — — 3 (a) — Retiree benefit plans cost $ 10 $ 24 $ 23 $ 47 (a) Curtailment loss resulting from our intent to sell the Industrial Solutions business within our Energy Connections & Lighting segment. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our effective income tax rates were 1.3% and 7.0% during the six months ended 2017 and 2016, respectively. The rate for 2017 benefited from the tax difference on global activities and U.S. business credits and for 2016 from a deductible stock loss and U.S. business credits. In the six months ended 2017, these decreases were partially offset by an adjustment to bring the six-month tax rate in line with the higher expected full-year rate. In the six months ended 2016, there was a further decrease to bring the six-month tax rate in line with the lower expected full-year rate. In the ordinary course of business, there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. UNRECOGNIZED TAX BENEFITS (In millions) June 30, 2017 December 31, 2016 Unrecognized tax benefits $ 4,760 $ 4,692 Portion that, if recognized, would reduce tax expense and effective tax rate(a) 2,894 2,886 Accrued interest on unrecognized tax benefits 682 615 Accrued penalties on unrecognized tax benefits 119 118 Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months 0-600 0-600 Portion that, if recognized, would reduce tax expense and effective tax rate(a) 0-500 0-500 (a) Some portion of such reduction may be reported as discontinued operations. The Internal Revenue Service (IRS) is currently auditing our consolidated U.S. income tax returns for 2012 - 2013 . In addition, certain other U.S. tax deficiency issues and refund claims for previous years are still unresolved. It is reasonably possible that a portion of the unresolved items could be resolved during the next 12 months, which could result in a decrease in our balance of "unrecognized tax benefits" - that is, the aggregate tax effect of differences between tax return positions and the benefits recognized in our financial statements. We believe that there are no other jurisdictions in which the outcome of unresolved issues or claims is likely to be material to our results of operations, financial position or cash flows. We further believe that we have made adequate provision for all income tax uncertainties. |
SHAREOWNERS' EQUITY
SHAREOWNERS' EQUITY | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
SHAREOWNERS' EQUITY | SHAREOWNERS’ EQUITY ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Investment securities Beginning balance $ 622 $ 680 $ 674 $ 460 Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes of $146, $222, $159 and $304 291 419 309 578 Reclassifications from OCI – net of deferred taxes of $(25), $(9), $(61) and $31 (48 ) (21 ) (118 ) 39 Other comprehensive income (loss)(a) 243 397 191 617 Less OCI attributable to noncontrolling interests — — — — Ending balance $ 866 $ 1,077 $ 866 $ 1,077 Currency translation adjustments (CTA) Beginning balance $ (6,004 ) $ (5,500 ) $ (6,816 ) $ (5,499 ) OCI before reclassifications – net of deferred taxes of $(207), $(50), $(241) and $217 491 26 753 141 Reclassifications from OCI – net of deferred taxes of $(1), $(39), $(541) and $80 34 29 588 (85 ) Other comprehensive income (loss)(a) 525 55 1,341 57 Less OCI attributable to noncontrolling interests 2 3 6 6 Ending balance $ (5,481 ) $ (5,448 ) $ (5,481 ) $ (5,448 ) Cash flow hedges Beginning balance $ 32 $ (26 ) $ 12 $ (80 ) OCI before reclassifications – net of deferred taxes of $(8), $2, $(2) and $(5) 44 (15 ) 64 (40 ) Reclassifications from OCI – net of deferred taxes of $(10), $(4), $(9) and $1 (54 ) (10 ) (55 ) 69 Other comprehensive income (loss)(a) (10 ) (25 ) 9 30 Less OCI attributable to noncontrolling interests — — — — Ending balance $ 22 $ (51 ) $ 22 $ (51 ) Benefit plans Beginning balance $ (11,421 ) $ (10,859 ) $ (12,469 ) $ (11,410 ) Prior service credit (costs) - net of deferred taxes of $0, $0, $0 and $5 — — — 23 Net actuarial gain (loss) – net of deferred taxes of $32, $(65), $133 and $(43) 24 (80 ) 500 (12 ) Net curtailment/settlement - net of deferred taxes of $0, $0, $16 and $0 — (1 ) 30 (1 ) Prior service cost amortization – net of deferred taxes of $19, $20, $38 and $41 10 17 21 33 Net actuarial loss amortization – net of deferred taxes of $251, $217, $504 and $433 526 447 1,059 890 Other comprehensive income (loss)(a) 560 382 1,610 933 Less OCI attributable to noncontrolling interests (1 ) — 1 (1 ) Ending balance $ (10,860 ) $ (10,476 ) $ (10,860 ) $ (10,476 ) Accumulated other comprehensive income (loss) at June 30 $ (15,454 ) $ (14,898 ) $ (15,454 ) $ (14,898 ) (a) Total other comprehensive income (loss) was $1,318 million and $810 million in the three months ended June 30, 2017 and 2016 , respectively, and $3,151 million and $1,636 million in the six months ended June 30, 2017 and 2016 respectively. RECLASSIFICATION OUT OF AOCI Three months ended Six months ended June 30 June 30 (In millions) 2017 2016 2017 2016 Statement of Earnings caption Available-for-sale securities Gains (losses) on securities $ 73 $ 30 $ 178 $ (70 ) Total revenues and other income(a) Income taxes (25 ) (9 ) (61 ) 31 Benefit (provision) for income taxes(b) Net of tax $ 48 $ 21 $ 118 $ (39 ) Currency translation adjustments Gains (losses) on dispositions $ (33 ) $ 10 $ (47 ) $ 5 Total revenues and other income(c) Income taxes (1 ) (39 ) (541 ) 80 Benefit (provision) for income taxes(d) Net of tax $ (34 ) $ (29 ) $ (588 ) $ 85 Cash flow hedges Gains (losses) on interest rate derivatives $ (15 ) $ (26 ) $ (15 ) $ (55 ) Interest and other financial charges Foreign exchange contracts 78 37 78 (5 ) (e) Other 1 2 1 (11 ) (f) Total before tax 65 14 64 (71 ) Income taxes (10 ) (4 ) (9 ) 1 Benefit (provision) for income taxes Net of tax $ 54 $ 10 $ 55 $ (69 ) Benefit plan items Curtailment gain (loss) $ — $ 1 $ (46 ) $ 1 (g) Amortization of prior service costs (29 ) (37 ) (59 ) (74 ) (g) Amortization of actuarial gains (losses) (777 ) (664 ) (1,563 ) (1,323 ) (g) Total before tax (806 ) (700 ) (1,668 ) (1,396 ) Income taxes 270 237 558 474 Benefit (provision) for income taxes Net of tax $ (536 ) $ (463 ) $ (1,110 ) $ (922 ) Total reclassification adjustments (net of tax) $ (467 ) $ (461 ) $ (1,525 ) $ (946 ) (a) Included an insignificant amount and $6 million for the three months ended June 30, 2017 and 2016 , and an insignificant amount and $(72) million for the six months ended June 30, 2017 and 2016, respectively in earnings (loss) from discontinued operations, net of taxes. (b) Included an insignificant amount and $(1) million for the three months ended June 30, 2017 and 2016 , and an insignificant amount and $31 million for the six months ended June 30, 2017 and 2016 respectively in earnings (loss) from discontinued operations, net of taxes. (c) Included $3 million and $77 million for the three months ended June 30, 2017 and 2016 , and $32 m illion and $71 million for the six months ended June 30, 2017 and 2016 respectively in earnings (loss) from discontinued operations, net of taxes. (d) Included $(1) million and $(39) million for the three months ended June 30, 2017 and 2016 , and $(541) million and $80 million for the six months ended June 30, 2017 and 2016 respectively in earnings (loss) from discontinued operations, net of taxes (e) Primarily includes $76 million and $53 million in GE Capital revenues from services and $(10) million and $(17) million in interest and other financial charges in the three months ended June 30, 2017 and 2016 , respectively and $101 million and $31 million in GE Capital revenues from services and $(23) million and $(36) million in interest and other financial charges in the six months ended June 30, 2017 and 2016, respectively. (f) Primarily recorded in costs and expenses. (g) Curtailment gain (loss), amortization of prior service costs and actuarial gains and losses out of AOCI are included in the computation of net periodic pension costs. See Note 12 for further information. NONCONTROLLING INTERESTS Noncontrolling interests in equity of consolidated affiliates include common shares in consolidated affiliates and preferred stock issued by our affiliates. CHANGES TO NONCONTROLLING INTERESTS Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Beginning balance $ 1,639 $ 1,667 $ 1,663 $ 1,864 Net earnings (loss) 14 1 20 (68 ) Dividends (22 ) (14 ) (31 ) (21 ) Dispositions 5 — (8 ) (42 ) Other (including AOCI)(a)(b) (3 ) 39 (10 ) (40 ) Ending balance at June 30 $ 1,634 $ 1,693 $ 1,634 $ 1,693 (a) Includes research & development partner funding arrangements and acquisitions. (b) 2016 included $(123) million for deconsolidation of investment funds managed by GE Asset Management (GEAM) upon the adoption of ASU 2015-02, Amendments to the Consolidation Analysis, and prior to the July 1, 2016 sale of GEAM. REDEEMABLE NONCONTROLLING INTERESTS Redeemable noncontrolling interests presented in our statement of financial position include common shares issued by our affiliates that are redeemable at the option of the holder of those interests. As part of the Alstom acquisition, we formed three joint ventures with Alstom in grid technology, renewable energy, and global nuclear and French steam power. Noncontrolling interests in these joint ventures hold certain redemption rights. These joint ventures and the associated redemption rights are discussed in Note 8 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016. Our retained earnings is adjusted for subsequent changes in the redemption value of the noncontrolling interest in these entities to the extent that the redemption value exceeds the carrying amount of the noncontrolling interest. CHANGES TO REDEEMABLE NONCONTROLLING INTERESTS Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Beginning balance $ 3,054 $ 3,036 $ 3,025 $ 2,972 Net earnings (loss) (28 ) (86 ) (109 ) (139 ) Dividends — — (11 ) (9 ) Redemption value adjustment 43 79 114 110 Other 125 42 173 135 Ending balance at June 30(a) $ 3,193 $ 3,070 $ 3,193 $ 3,070 (a) Included $2,894 million and $2,950 million related to the Alstom joint ventures at June 30, 2017 and 2016, respectively. OTHER Dividends from GE Capital to GE totaled $2,105 million, including cash dividends of $2,016 million , and $3,500 million in the three months ended June 30, 2017 and 2016, respectively and $4,105 million , including cash dividends of $4,016 million , and $11,000 million in the six months ended June 30, 2017 and 2016, respectively. Dividends on GE preferred stock totaled $182 million , including cash dividends of $147 million and $152 million , including cash dividends of $120 million in the three months ended June 30, 2017 and 2016, respectively, and $216 million , including cash dividends of $147 million and $441 million , including cash dividends of $185 million in the six months ended June 30, 2017 and 2016, respectively. Dividends on GE preferred stock are payable semi-annually, in June and December, and accretion is recorded on a quarterly basis. |
EARNINGS PER SHARE INFORMATION
EARNINGS PER SHARE INFORMATION | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE INFORMATION | EARNINGS PER SHARE INFORMATION Three months ended June 30 2017 2016 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Amounts attributable to the Company: Consolidated Earnings from continuing operations for per-share calculation(a)(b) $ 1,514 $ 1,514 $ 3,446 $ 3,449 Preferred stock dividends (182 ) (182 ) (152 ) (152 ) Earnings from continuing operations attributable to common shareowners for per-share calculation(a)(b) $ 1,332 $ 1,332 $ 3,294 $ 3,297 Loss from discontinued operations for per-share calculation(a)(b) (157 ) (157 ) (546 ) (543 ) Net earnings attributable to GE common shareowners for per-share calculation(a)(b) $ 1,179 $ 1,179 $ 2,751 $ 2,753 Average equivalent shares Shares of GE common stock outstanding 8,671 8,671 9,079 9,079 Employee compensation-related shares (including stock options) 89 — 108 — Total average equivalent shares 8,760 8,671 9,187 9,079 Per-share amounts Earnings from continuing operations $ 0.15 $ 0.15 $ 0.36 $ 0.36 Loss from discontinued operations (0.02 ) (0.02 ) (0.06 ) (0.06 ) Net earnings 0.13 0.14 0.30 0.30 Six months ended June 30 2017 2016 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Amounts attributable to the Company: Consolidated Earnings from continuing operations for per-share calculation(a)(b) $ 2,401 $ 2,400 $ 3,981 $ 3,983 Preferred stock dividends (216 ) (216 ) (441 ) (441 ) Earnings from continuing operations attributable to common shareowners for per-share calculation(a)(b) $ 2,185 $ 2,184 $ 3,540 $ 3,542 Loss from discontinued operations for per-share calculation(a)(b) (399 ) (400 ) (861 ) (858 ) Net earnings attributable to GE common shareowners for per-share calculation(a)(b) $ 1,793 $ 1,793 $ 2,687 $ 2,690 Average equivalent shares Shares of GE common stock outstanding 8,695 8,695 9,179 9,179 Employee compensation-related shares (including stock options) 94 — 101 — Total average equivalent shares 8,789 8,695 9,281 9,179 Per-share amounts Earnings from continuing operations $ 0.25 $ 0.25 $ 0.38 $ 0.39 Loss from discontinued operations (0.05 ) (0.05 ) (0.09 ) (0.09 ) Net earnings 0.20 0.21 0.29 0.29 (a) Our unvested restricted stock unit awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities. For the three months ended June 30, 2017 pursuant to the two-class method, as a result of excess dividends in respect to the current period earnings, losses were not allocated to the participating securities. For the three months ended June 30, 2016 , participating securities are included in the computation of earnings per share pursuant to the two-class method and the application of this treatment had an insignificant effect. For the six months ended June 30, 2017 and 2016 , pursuant to the two-class method, as a result of excess dividends in respect to the current period earnings, losses were not allocated to the participating securities. (b) Included an insignificant amount of dividend equivalents in each of the periods presented. F or the three months ended June 30, 2017 and 2016 , approximately 33 million and 25 million and of outstanding stock awards were not included in the computation of diluted earnings per share because their effect was antidilutive. F or the six months ended June 30, 2017 and 2016 , approximately 26 million and 28 million of outstanding stock awards were not included in the computation of diluted earnings per share because their effect was antidilutive. Earnings per share amounts are computed independently for earnings from continuing operations, loss from discontinued operations and net earnings. As a result, the sum of per-share amounts from continuing operations and discontinued operations may not equal the total per-share amounts for net earnings. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS The following table provides information about assets and liabilities not carried at fair value. The table excludes finance leases and non-financial assets and liabilities. Substantially all of the assets discussed below are considered to be Level 3. The vast majority of our liabilities’ fair value can be determined based on significant observable inputs and thus considered Level 2. Few of the instruments are actively traded and their fair values must often be determined using financial models. Realization of the fair value of these instruments depends upon market forces beyond our control, including marketplace liquidity. June 30, 2017 December 31, 2016 (In millions) Carrying amount (net) Estimated fair value Carrying amount (net) Estimated fair value GE Assets Investments and notes receivable $ 1,305 $ 1,355 $ 1,526 $ 1,595 Liabilities Borrowings(a)(b) 29,650 30,455 19,184 19,923 Borrowings (debt assumed)(a)(c) 52,291 59,603 60,109 66,998 GE Capital Assets Loans 19,740 19,774 21,060 20,830 Other commercial mortgages 1,471 1,554 1,410 1,472 Loans held for sale 604 604 473 473 Other financial instruments(d) 116 149 121 150 Liabilities Borrowings(a)(e)(f)(g) 54,691 58,752 58,523 62,024 Investment contracts 2,671 3,130 2,813 3,277 (a) See Note 10. (b) Included $ 107 million and $ 115 million of accrued interest in estimated fair value at June 30, 2017 and December 31, 2016 , respectively. (c) Included $ 553 million and $ 803 million of accrued interest in estimated fair value at June 30, 2017 and December 31, 2016 , respectively. (d) Principally comprises cost method investments. (e) Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at June 30, 2017 and December 31, 2016 would have been reduced by $ 2,478 million and $ 2,397 million, respectively. (f) Included $ 808 million and $ 775 million of accrued interest in estimated fair value at June 30, 2017 and December 31, 2016 , respectively. (g) Excluded $ 48,216 million and $ 58,780 million of net intercompany payable to GE at June 30, 2017 and December 31, 2016 , respectively. NOTIONAL AMOUNTS OF LOAN COMMITMENTS (In millions) June 30, 2017 December 31, 2016 Ordinary course of business lending commitments(a) $ 789 $ 687 Unused revolving credit lines 229 238 (a) Excluded investment commitments of $ 259 million and $ 522 million at June 30, 2017 and December 31, 2016 , respectively. DERIVATIVES AND HEDGING FORMS OF HEDGING In this section we explain the hedging methods we use and their effects on our financial statements. Cash flow hedges – We use cash flow hedging primarily to reduce or eliminate the effects of foreign exchange rate changes on purchase and sale contracts in our industrial businesses and to convert foreign currency debt that we have issued in our financial services business back to our functional currency. As part of our ongoing effort to reduce borrowings, we may repurchase debt that was in a cash flow hedge accounting relationship. At the time of determining that the debt cash flows are probable of not occurring any related OCI will be released to earnings. FINANCIAL STATEMENT EFFECTS - CASH FLOW HEDGES Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Balance sheet changes Fair value of derivatives increase (decrease) $ 34 $ 11 $ 56 $ (45 ) Shareowners' equity (increase) decrease (34 ) (12 ) (56 ) 45 Earnings (loss) related to ineffectiveness — — — 1 Earnings (loss) effect of derivatives(a) 65 14 64 (71 ) (a) Offsets earnings effect of the hedged forecasted transaction Fair value hedges – These derivatives are used to hedge the effects of interest rate and currency exchange rate changes on debt that we have issued. FINANCIAL STATEMENT EFFECTS - FAIR VALUE HEDGES Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Balance sheet changes Fair value of derivative increase (decrease) $ (57 ) $ 888 $ (282 ) $ 2,610 Adjustment to carrying amount of hedged debt (increase) decrease 2 (933 ) 164 (2,688 ) Earnings (loss) related to hedge ineffectiveness (56 ) (46 ) (118 ) (77 ) Net investment hedges – We invest in foreign operations that conduct their financial services activities in currencies other than the US dollar. We hedge the currency risk associated with those investments primarily using short-term currency exchange contracts under which we receive US dollars and pay foreign currency and non-derivative instruments such as debt denominated in a foreign currency. FINANCIAL STATEMENT EFFECTS - NET INVESTMENT HEDGES Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Balance sheet changes Fair value of derivatives increase (decrease) $ (98 ) $ (282 ) $ (191 ) $ 47 Fair value of non-derivative instruments (increase) decrease (389 ) (322 ) (859 ) (49 ) Shareowners' equity (increase) decrease 490 609 1,063 40 Earnings (loss) related to spot-forward differences and ineffectiveness 3 5 13 37 Earnings (loss) related to reclassification upon sale or liquidation(a) — (380 ) 59 (1,072 ) (a) Included zero and $(380) million recorded in discontinued operations in the three months ended June 30, 2017 and 2016 and $59 million and $(1,072) million recorded in discontinued operations in the six months ended June 30, 2017 and 2016 , respectively. Economic Hedges - These derivatives are not designated as hedges from an accounting standpoint (and therefore we do not apply hedge accounting to the relationship) but otherwise serve the same economic purpose as other hedging arrangements. We use economic hedges when we have exposures to currency exchange risk for which we are unable to meet the requirements for hedge accounting or when changes in the carrying amount of the hedged item are already recorded in earnings in the same period as the derivative making hedge accounting unnecessary. Even though the derivative is an effective economic hedge, there may be a net effect on earnings in each period due to differences in the timing of earnings recognition between the derivative and the hedged item. FINANCIAL STATEMENT EFFECTS - ECONOMIC HEDGES Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Balance sheet changes Change in fair value of economic hedge increase (decrease) $ 979 $ 157 $ 641 $ (122 ) Change in carrying amount of item being hedged increase (decrease) (1,180 ) (286 ) (956 ) (198 ) Earnings (loss) effect of economic hedges(a) (200 ) (130 ) (315 ) (321 ) (a) Offset by the future earnings effects of economically hedged item. NOTIONAL AMOUNT OF DERIVATIVES The notional amount of a derivative is the number of units of the underlying (for example, the notional principal amount of the debt in an interest rate swap). The notional amount is used to compute interest or other payment streams to be made under the contract and is a measure of our level of activity. We generally disclose derivative notional amounts on a gross basis. A substantial majority of the outstanding notional amount of $173 billion at June 30, 2017 is related to managing interest rate and currency risk between financial assets and liabilities in our financial services business. The remaining derivative notional amount primarily relates to hedges of anticipated sales and purchases in foreign currency, commodity purchases and contractual terms in contracts that are considered embedded derivatives. The table below provides additional information about how derivatives are reflected in our financial statements. CARRYING AMOUNTS RELATED TO DERIVATIVES (In millions) June 30, 2017 December 31, 2016 Derivative assets $ 4,077 $ 5,467 Derivative liabilities (2,511 ) (4,883) Accrued interest 484 792 Cash collateral & credit valuation adjustment (1,599 ) (672) Net Derivatives 451 703 Securities held as collateral (432 ) (442) Net amount $ 19 $ 262 EFFECTS OF DERIVATIVES ON EARNINGS All derivatives are marked to fair value on our balance sheet, whether they are designated in a hedging relationship for accounting purposes or are used as economic hedges. Three months ended June 30 Six months ended June 30 (In millions) Effect on hedging instrument Effect on underlying Effect on earnings Effect on hedging instrument Effect on underlying Effect on earnings 2017 Cash flow hedges $ 34 $ (34 ) $ — $ 56 $ (56 ) $ — Fair value hedges (57 ) 2 (56 ) (282 ) 164 (118 ) Net investment hedges(a) (487 ) 490 3 (1,050 ) 1,063 13 Economic hedges(b) 979 (1,180 ) (200 ) 641 (956 ) (315 ) Total $ (253 ) $ (420 ) 2016 Cash flow hedges $ 11 $ (12 ) $ — $ (45 ) $ 45 $ 1 Fair value hedges 888 (933 ) (46 ) 2,610 (2,688 ) (77 ) Net investment hedges(a) (604 ) 609 5 (2 ) 40 37 Economic hedges(b) 157 (286 ) (130 ) (122 ) (198 ) (321 ) Total $ (171 ) $ (360 ) The amounts in the table above generally do not include associated derivative accruals in income or expense. (a) Both derivatives and non-derivatives hedging instruments are included. (b) Net effect is substantially offset by the change in fair value of the hedged item that will affect earnings in future periods. See Note 14 for additional information about changes in shareowners' equity related to hedging and amounts released to earnings. See Note 21 for other supplemental information about derivatives and hedging. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2017 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES A VIE is an entity that has one of three characteristics: (1) it is controlled by someone other than its shareowners or partners, (2) its shareowners or partners are not economically exposed to the entity's earnings (for example, they are protected against losses), or (3) it was thinly capitalized when it was formed. In the normal course of business we become involved with VIEs either because we help create them or we invest in them. Our VIEs either provide goods and services to customers or provide financing to third parties for the purchase of GE goods and services. If we control the VIE, we consolidate it and provide disclosure below. However, if the VIE is a business and use of its assets is not limited to settling its liabilities, ongoing disclosures are not required. CONSOLIDATED VARIABLE INTEREST ENTITIES Our most significant consolidated VIEs are the three joint ventures that were formed as part of the Alstom acquisition. These joint ventures include grid technology, renewable energy, and global nuclear and French steam power and have combined assets, liabilities and redeemable non-controlling interest as of June 30, 2017 and December 31, 2016 of $16,193 million , $9,006 million and $2,894 million and $14,460 million , $9,922 million and $2,709 million , respectively. These joint ventures are considered VIEs because the equity held by Alstom does not participate fully in the earnings of the ventures due to contractual features allowing Alstom to sell their interests back to GE. We consolidate these ventures because we control all their significant activities. These joint ventures are in all other respects regular businesses and are therefore exempt from ongoing disclosure requirements for consolidated VIEs provided below. The table below provides information about consolidated VIEs that are subject to ongoing disclosure requirements. Substantially all of these entities were created to help our customers finance the purchase of GE goods and services or to purchase GE customer notes receivable arising from sales of GE goods and services. These entities have no features that could expose us to losses that could significantly exceed the difference between the consolidated assets and liabilities. ASSETS AND LIABILITIES OF CONSOLIDATED VIEs GE Capital (In millions) GE Customer Notes receivables(a) Other Total June 30, 2017 Assets Financing receivables, net $ — $ — $ 881 $ 881 Current receivables 56 560 — 616 Investment securities — — 1,004 1,004 Other assets 587 1,320 2,101 4,008 Total $ 643 $ 1,880 $ 3,986 $ 6,509 Liabilities Borrowings $ 38 $ — $ 1,134 $ 1,172 Non-recourse borrowings — 667 16 683 Other liabilities 494 1,185 1,555 3,234 Total $ 532 $ 1,852 $ 2,705 $ 5,089 December 31, 2016 Assets Financing receivables, net $ — $ — $ 1,035 $ 1,035 Current receivables 57 670 — 727 Investment securities — — 982 982 Other assets 492 1,122 1,747 3,361 Total $ 549 $ 1,792 $ 3,764 $ 6,105 Liabilities Borrowings $ 1 $ — $ 818 $ 819 Non-recourse borrowings — 401 16 417 Other liabilities 457 1,378 1,482 3,317 Total $ 458 $ 1,779 $ 2,316 $ 4,553 (a) Two funding vehicles established to purchase customer notes receivable from GE, one of which is partially funded by third-party debt. Total revenues from our consolidated VIEs were $256 million and $439 million for the three months ended June 30, 2017 and 2016, respectively and $508 million and $794 million in the six months ended June 30, 2017 and 2016 , respectively. Related expenses consisted primarily of cost of goods and services of $83 million and $257 million for the three months ended June 30, 2017 and 2016, respectively and $178 million and $601 million in the six months ended June 30, 2017 and 2016 , respectively. Where we provide servicing for third-party investors, we are contractually permitted to commingle cash collected from customers on financing receivables sold to third-party investors with our own cash prior to payment to third-party investors, provided our short-term credit rating does not fall below A-1/P1. These third-party investors also owe us amounts for purchased financial assets and scheduled interest and principal payments, At June 30, 2017 and December 31, 2016, the amounts of commingled cash owed to the third-party investors were $1,123 million and $1,117 million , respectively, and the amounts owed to us by third-party investors were $10 million and $5 million , respectively. UNCONSOLIDATED VARIABLE INTEREST ENTITIES We become involved with unconsolidated VIEs primarily through assisting in the formation and financing of the entity. We do not consolidate these entities because we do not have power over decisions that significantly affect their economic performance. Our investments in unconsolidated VIEs, at June 30, 2017 and December 31, 2016 were $6,210 million and $6,346 million , respectively. Substantially all of these investments are held by Energy Financial Services. Obligations to make additional investments in these entities are not significant. |
COMMITMENTS, GUARANTEES, PRODUC
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES | COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES COMMITMENTS The GE Capital Aviation Services (GECAS) business in GE Capital had placed multiple-year orders for various Boeing, Airbus and other aircraft manufacturers with list prices approximating $ 39,374 million and secondary orders with airlines for used aircraft of approximately $ 1,894 million at June 30, 2017 . In our Aviation segment, we had committed to provide financing assistance of $ 1,911 million of future customer acquisitions of aircraft equipped with our engines. GUARANTEES Our guarantees are provided in the ordinary course of business. We underwrite these guarantees considering economic, liquidity and credit risk of the counterparty. We believe that the likelihood is remote that any such arrangements could have a significant adverse effect on our financial position, results of operations or liquidity. We record liabilities for guarantees at estimated fair value, generally the amount of the premium received, or if we do not receive a premium, the amount based on appraisal, observed market values or discounted cash flows. Any associated expected recoveries from third parties are recorded as other receivables, not netted against the liabilities. At June 30, 2017 , we were committed under the following guarantee arrangements beyond those provided on behalf of VIEs. See Note 17. Credit Support. We have provided $ 2,282 million of credit support on behalf of certain customers or associated companies, predominantly joint ventures and partnerships, using arrangements such as standby letters of credit and performance guarantees. These arrangements enable these customers and associated companies to execute transactions or obtain desired financing arrangements with third parties. Should the customer or associated company fail to perform under the terms of the transaction or financing arrangement, we would be required to perform on their behalf. Under most such arrangements, our guarantee is secured, usually by the asset being purchased or financed, or possibly by certain other assets of the customer or associated company. The length of these credit support arrangements parallels the length of the related financing arrangements or transactions. The liability for such credit support was $ 44 million at June 30, 2017 . Indemnification Agreements – Continuing Operations. We have agreements that require us to fund up to $ 210 million at June 30, 2017 under residual value guarantees on a variety of leased equipment. Under most of our residual value guarantees, our commitment is secured by the leased asset. The liability for these indemnification agreements was $ 7 million at June 30, 2017 . At June 30, 2017 , we also had $ 1,051 million of other indemnification commitments, substantially all of which relate to representations and warranties in sales of businesses or assets. The liability for these indemnification commitments was $ 234 million at June 30, 2017 . Indemnification Agreements – Discontinued Operations. At June 30, 2017 , we provided specific indemnifications to buyers of GE Capital’s assets that amounted to $ 2,611 million, for which we have recognized related liabilities of $ 305 million. In addition, in connection with the 2015 public offering and sale of our North American Retail Finance business, Synchrony Financial, GE Capital indemnified Synchrony Financial and its directors, officers, and employees against the liabilities of GECC's businesses other than historical liabilities of the businesses that are part of Synchrony Financial's ongoing operations. Contingent Consideration. These are agreements to provide additional consideration to a buyer or seller in a business combination if contractually specified conditions related to the acquisition or disposition are achieved. Amount of contingent consideration was insignificant at June 30, 2017 . PRODUCT WARRANTIES We provide for estimated product warranty expenses when we sell the related products. Because warranty estimates are forecasts that are based on the best available information – mostly historical claims experience – claims costs may differ from amounts provided. An analysis of changes in the liability for product warranties follows. Six months ended June 30 (In millions) 2017 2016 Balance at January 1 $ 1,920 $ 1,723 Current-year provisions 354 339 Expenditures (414 ) (343 ) Other changes(a) 109 113 Balance as of June 30 $ 1,969 $ 1,832 ( a) Primarily includes effect of currency exchange and acquisitions. OTHER LOSS CONTINGENCIES LEGAL MATTERS WMC. During the fourth quarter of 2007, we completed the sale of WMC, our U.S. mortgage business. WMC substantially discontinued all new loan originations by the second quarter of 2007, and is not a loan servicer. In connection with the sale, WMC retained certain representation and warranty obligations related to loans sold to third parties prior to the disposal of the business and contractual obligations to repurchase previously sold loans that had an early payment default. All claims received by WMC for early payment default have either been resolved or are no longer being pursued. The remaining active claims have been brought by securitization trustees or administrators seeking recovery from WMC for alleged breaches of representations and warranties on mortgage loans that serve as collateral for residential mortgage-backed securities (RMBS). At June 30, 2017, such claims consisted of $1,019 million of individual claims generally submitted before the filing of a lawsuit (compared to $1,060 million at December 31, 2016) and $5,435 million of additional claims asserted against WMC in litigation without making a prior claim (Litigation Claims) (compared to $5,456 million at December 31, 2016). The total amount of these claims, $6,454 million , reflects the purchase price or unpaid principal balances of the loans at the time of purchase and does not give effect to pay downs or potential recoveries based upon the underlying collateral, which in many cases are substantial, nor to accrued interest or fees. WMC believes that repurchase claims brought based upon representations and warranties made more than six years before WMC was notified of the claim would be disallowed in legal proceedings under applicable law and the June 11, 2015 decision of the New York Court of Appeals in ACE Securities Corp. v. DB Structured Products, Inc., on the statute of limitations period governing such claims. Reserves related to repurchase claims made against WMC were $636 million at June 30, 2017, reflecting a net increase to reserves in the six months ended June 30, 2017 of $10 million . The reserve estimate takes into account recent settlement activity and is based upon WMC’s evaluation of the remaining exposures as a percentage of estimated lifetime mortgage loan losses within the pool of loans supporting each securitization for which timely claims have been asserted in litigation against WMC. Settlements in prior periods reduced WMC’s exposure on claims asserted in certain securitizations and the claim amounts reported above give effect to these settlements. ROLLFORWARD OF THE RESERVE Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Balance, beginning of period $ 626 $ 833 $ 626 $ 875 Provision 10 27 10 84 Claim resolutions / rescissions — — — (99 ) Balance, end of period $ 636 $ 860 $ 636 $ 860 Given the significant litigation activity and WMC’s continuing efforts to resolve the lawsuits involving claims made against WMC, it is difficult to assess whether future losses will be consistent with WMC’s past experience. Adverse changes to WMC’s assumptions supporting the reserve may result in an increase to these reserves. WMC estimates a range of reasonably possible loss from $0 to approximately $500 million over its recorded reserve at June 30, 2017. This estimate involves significant judgment and may not reflect the range of uncertainties and unpredictable outcomes inherent in litigation, including the matters discussed in Legal Proceedings and potential changes in WMC’s legal strategy. This estimate excludes any possible loss associated with an adverse court decision on the applicable statute of limitations or an adverse outcome in the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) investigation discussed in Legal Proceedings, as WMC is unable at this time to develop such a meaningful estimate. At June 30, 2017, there were 10 lawsuits involving claims made against WMC arising from alleged breaches of representations and warranties on mortgage loans included in 11 securitizations. The adverse parties in these cases are securitization trustees or parties claiming to act on their behalf. As discussed in Legal Proceedings, five of these lawsuits are the subject of settlement agreements approved by a California state court. On January 23, 2017, the ResCap Liquidating Trust, as successor to Residential Funding Company, LLC (RFC), filed a lawsuit against WMC in the United States District Court for the District of Minnesota arising from alleged breaches in representations and warranties made by WMC in connection with the sale of approximately $840 million in loans to RFC over a period of time preceding RFC’s filing for bankruptcy protection in May 2012 . Although the alleged claims for relief vary from case to case, the complaints and counterclaims in these actions generally assert claims for breach of contract, indemnification, and/or declaratory judgment, and seek specific performance (repurchase of defective mortgage loan) and/or money damages. Adverse court decisions, including in cases not involving WMC, could result in new claims and lawsuits on additional loans. However, WMC continues to believe that it has defenses to the claims asserted in litigation, including, for example, based on causation and materiality requirements and applicable statutes of limitations. It is not possible to predict the outcome or impact of these defenses and other factors, any of which could materially affect the amount of any loss ultimately incurred by WMC on these claims. WMC has also received indemnification demands, nearly all of which are unspecified, from depositors/underwriters/sponsors of RMBS or securitization trustees in connection with actual or potential claims concerning alleged misrepresentations in the securitization offering documents to which WMC is not a party, mortgage loan repurchase claims made against RMBS sponsors or other claims involving alleged defects in loans sold by WMC. WMC believes that it has defenses to these demands. To the extent WMC is required to repurchase loans, WMC’s loss also would be affected by several factors, including pay downs, accrued interest and fees, and the value of the underlying collateral. The reserve and estimate of possible loss reflect judgment, based on currently available information, and a number of assumptions, including economic conditions, claim and settlement activity, pending and threatened litigation, court decisions regarding WMC’s legal defenses, indemnification demands, government activity, and other variables in the mortgage industry. Actual losses arising from claims against WMC could exceed these amounts and additional claims and lawsuits could result if actual claim rates, governmental actions, litigation and indemnification activity, adverse court decisions, actual settlement rates or losses WMC incurs on repurchased loans differ from its assumptions. Alstom legacy matters . On November 2, 2015, we acquired the Thermal, Renewables and Grid businesses from Alstom . Prior to the acquisition, the seller was the subject of two significant cases involving anti-competitive activities and improper payments: (1) in January 2007, Alstom was fined €65 million by the European Commission for participating in a gas insulated switchgear cartel that operated from 1988 to 2004 (that fine was later reduced to €59 million ), and (2) in December 2014, Alstom pled guilty in the United States to multiple violations of the Foreign Corrupt Practices Act and paid a criminal penalty of $772 million . As part of GE’s accounting for the acquisition, we established a reserve amounting to $858 million for legal and compliance matters related to the legacy business practices that were the subject of these and related cases in various jurisdictions. Regardless of jurisdiction, the allegations relate to claimed anti-competitive conduct or improper payments in the pre-acquisition period as the source of legal violations and/or damages. Given the significant litigation and compliance activity related to these matters and our ongoing efforts to resolve them, it is difficult to assess whether the disbursements will ultimately be consistent with the reserve established. The estimation of this reserve involved significant judgment and may not reflect the full range of uncertainties and unpredictable outcomes inherent in litigation and investigations of this nature. Damages sought may include disgorgement of profits on the underlying business transactions, fines and/or penalties, interest, or other forms of resolution. Factors that can affect the ultimate amount of losses associated with these matters include the way cooperation is assessed and valued, prosecutorial discretion in the determination of damages, formulas for determining fines and penalties, the duration and amount of legal and investigative resources applied, and political and social influences within each jurisdiction, among other considerations. Actual losses arising from claims in these matters could exceed the amount provided. At this time, we are unable to develop a meaningful estimate of the range of reasonably possible additional losses for this exposure. ENVIRONMENTAL MATTERS Our operations, like operations of other companies engaged in similar businesses, involve the use, disposal and cleanup of substances regulated under environmental protection laws. We are involved in numerous remediation actions to clean up hazardous wastes as required by federal and state laws. Liabilities for remediation costs exclude possible insurance recoveries and, when dates and amounts of such costs are not known, are not discounted. When there appears to be a range of possible costs with equal likelihood, liabilities are based on the low end of such range. It is reasonably possible that our environmental remediation exposure will exceed amounts accrued. However, due to uncertainties about the status of laws, regulations, technology and information related to individual sites, such amounts are not reasonably estimable. For further information, see our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 . |
INTERCOMPANY TRANSACTIONS
INTERCOMPANY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
INTERCOMPANY TRANSACTIONS | INTERCOMPANY TRANSACTIONS Transactions between related companies are made on an arms-length basis and are reported in the respective GE and GE Capital columns of our financial statements, but are eliminated in deriving our consolidated financial statements. Threse transactions include, but are not limited to, the following: • GE Capital dividends to GE, • GE Capital working capital solutions to optimize GE cash management, • GE Capital enabled GE industrial orders, and • Aircraft engines, power equipment, renewable energy equipment and healthcare equipment manufactured by GE that are installed on GE Capital investments, including leased equipment. In addition to the above transactions that primarily enable growth for the GE businesses, there are routine related party transactions, which include, but are not limited to, the following: • Expenses related to parent-subsidiary pension plans, • Buildings and equipment leased between GE and GE Capital, including sale-leaseback transactions, • Information technology (IT) and other services sold to GE Capital by GE • Settlements of tax liabilities, and • Various investments, loans and allocations of GE corporate overhead costs. Presented below is a walk of intercompany eliminations from the combined GE and GE Capital totals to the consolidated cash flows from continuing operations. Six months ended June 30 (In millions) 2017 2016 Cash from (used for) operating activities-continuing operations Combined $ 5,549 $ 11,207 GE current receivables sold to GE Capital 1,598 1,313 GE Capital dividends to GE (4,016 ) (11,000 ) Other reclassifications and eliminations(a) 258 494 Total cash from (used for) operating activities-continuing operations $ 3,389 $ 2,014 Cash from (used for) investing activities-continuing operations Combined $ 3,173 $ 39,495 GE current receivables sold to GE Capital (1,760 ) (1,643 ) GE Capital long-term loans to GE 4,075 — GE Capital short-term loan to GE (1,329 ) 5,002 Other reclassifications and eliminations(a) (76 ) (441 ) Total cash from (used for) investing activities-continuing operations $ 4,083 $ 42,414 Cash from (used for) financing activities-continuing operations Combined $ (13,339 ) $ (69,038 ) GE current receivables sold to GE Capital 162 330 GE Capital dividends to GE 4,016 11,000 GE Capital long-term loans to GE (4,075 ) — GE Capital short-term loan to GE 1,329 (5,002 ) Other reclassifications and eliminations(a) (182 ) (52 ) Total cash from (used for) financing activities-continuing operations $ (12,089 ) $ (62,763 ) (a) Includes eliminations of other cash flows activities including those related to GE Capital enabled GE industrial orders, various investments, loans and allocations of GE corporate overhead costs. |
GUARANTOR FINANCIAL INFORMATION
GUARANTOR FINANCIAL INFORMATION | 6 Months Ended |
Jun. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
GUARANTOR FINANCIAL INFORMATION | 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 fully and unconditionally, jointly and severally guaranteed by both the Company and GE Capital International Holdings Limited (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. Securities 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 Consolidating Statements of Earnings and Comprehensive Income for the three months ended June 30, 2017 and 2016 and six months ended June 30, 2017 and 2016, Condensed Consolidating Statements of Financial Position as of June 30, 2017 and December 31, 2016 and Condensed Consolidating Statements of Cash Flows for the six months ended June 30, 2017 and 2016 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; • GE Capital International Funding Company Unlimited Company (the Subsidiary Issuer) – finance subsidiary for debt; • GE Capital International Holdings Limited (GECIHL) (the Subsidiary Guarantor) - prepared with investments in non-guarantor subsidiaries accounted for under the equity method of accounting; • 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 Adjustments - 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 JUNE 30, 2017 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues and other income Sales of goods and services $ 8,080 $ — $ — $ 37,615 $ (18,456 ) $ 27,239 Other income 27,632 — — 28,005 (55,339 ) 298 Equity in earnings (loss) of affiliates (25,246 ) — 450 13,982 10,813 — GE Capital revenues from services — 173 188 2,589 (928 ) 2,022 Total revenues and other income 10,467 173 638 82,191 (63,910 ) 29,558 Costs and expenses Interest and other financial charges 767 159 489 1,221 (1,463 ) 1,174 Other costs and expenses 8,557 — 9 37,570 (19,265 ) 26,870 Total costs and expenses 9,324 159 497 38,791 (20,728 ) 28,044 Earnings (loss) from continuing operations before income taxes 1,143 14 141 43,400 (43,183 ) 1,515 Benefit (provision) for income taxes 370 (2 ) — (230 ) (154 ) (15 ) Earnings (loss) from continuing operations 1,513 12 141 43,170 (43,336 ) 1,499 Earnings (loss) from discontinued operations, net of taxes (146 ) — (5 ) 3 2 (146 ) Net earnings (loss) 1,367 12 136 43,172 (43,334 ) 1,354 Less net earnings (loss) attributable to noncontrolling interests — — — 16 (30 ) (14 ) Net earnings (loss) attributable to the Company 1,367 12 136 43,156 (43,304 ) 1,367 Other comprehensive income (loss) 1,317 — 32 (25,537 ) 25,505 1,317 Comprehensive income (loss) attributable to the Company $ 2,685 $ 12 $ 168 $ 17,619 $ (17,799 ) $ 2,685 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED JUNE 30, 2016 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating 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 ) 0 GE Capital revenues from services 0 200 722 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 Other costs and expenses 11,601 — 19 38,786 (22,062 ) 28,344 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 312 (3 ) (43 ) (473 ) (254 ) (461 ) Earnings (loss) from continuing operations 3,486 22 (22 ) 30,639 (30,762 ) 3,363 Earnings (loss) from discontinued operations, net of taxes (541 ) — (521 ) 600 (80 ) (541 ) Net earnings (loss) 2,946 22 (542 ) 31,239 (30,841 ) 2,823 Less net earnings (loss) attributable to noncontrolling interests — — — (66 ) (20 ) (86 ) Net earnings (loss) attributable to the Company 2,946 22 (542 ) 31,305 (30,822 ) 2,908 Other comprehensive income (loss) 807 — 246 579 (825 ) 807 Comprehensive income (loss) attributable to the Company $ 3,753 $ 22 $ (297 ) $ 31,884 $ (31,646 ) $ 3,715 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2017 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues and other income Sales of goods and services $ 16,872 $ — $ — $ 73,705 $ (38,110 ) $ 52,467 Other income 27,686 — — 32,625 (59,845 ) 465 Equity in earnings (loss) of affiliates (22,802 ) — 692 50,664 (28,555 ) — GE Capital revenues from services — 329 374 4,859 (1,275 ) 4,286 Total revenues and other income 21,756 329 1,066 161,853 (127,786 ) 57,219 Costs and expenses Interest and other financial charges 1,677 309 943 2,303 (2,920 ) 2,313 Other costs and expenses 18,186 — 22 73,511 (39,159 ) 52,560 Total costs and expenses 19,862 309 965 75,814 (42,078 ) 54,872 Earnings (loss) from continuing operations before income taxes 1,894 20 101 86,039 (85,707 ) 2,346 Benefit (provision) for income taxes 514 (2 ) 115 (699 ) 41 (31 ) Earnings (loss) from continuing operations 2,408 17 215 85,341 (85,666 ) 2,315 Earnings (loss) from discontinued operations, net of taxes (388 ) — 278 3 (278 ) (385 ) Net earnings (loss) 2,020 17 493 85,344 (85,944 ) 1,931 Less net earnings (loss) attributable to noncontrolling interests — — — (32 ) (57 ) (90 ) Net earnings (loss) attributable to the Company 2,020 17 493 85,376 (85,887 ) 2,020 Other comprehensive income (loss) 3,144 — 649 (26,994 ) 26,345 3,144 Comprehensive income (loss) attributable to the Company $ 5,164 $ 17 $ 1,142 $ 58,382 $ (59,542 ) $ 5,164 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2016 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating 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 ) 0 GE Capital revenues from services 0 596 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 Other costs and expenses 22,057 — 55 74,624 (42,522 ) 54,214 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 931 (6 ) (46 ) (958 ) (205 ) (284 ) Earnings (loss) from continuing operations 3,986 42 (26 ) 47,964 (48,187 ) 3,779 Earnings (loss) from discontinued operations, net of taxes (849 ) — (996 ) 174 821 (849 ) Net earnings (loss) 3,137 42 (1,022 ) 48,138 (47,366 ) 2,930 Less net earnings (loss) attributable to noncontrolling interests — — — (91 ) (116 ) (207 ) Net earnings (loss) attributable to the Company 3,137 42 (1,022 ) 48,230 (47,250 ) 3,137 Other comprehensive income (loss) 1,631 (12 ) 63 847 (898 ) 1,631 Comprehensive income (loss) attributable to the Company $ 4,767 $ 30 $ (958 ) $ 49,076 $ (48,148 ) $ 4,767 CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION JUNE 30, 2017 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Cash and equivalents $ 4,420 $ — $ 3 $ 40,174 $ (547 ) $ 44,049 Investment securities 1 — — 42,065 (2,098 ) 39,968 Receivables - net 54,549 17,233 31,020 80,421 (143,470 ) 39,753 Inventories 5,265 — — 22,111 (4,533 ) 22,843 Property, plant and equipment - net 5,891 — — 46,284 (2,007 ) 50,167 Investment in subsidiaries(a) 284,471 — 80,491 472,477 (837,439 ) 0 Goodwill and intangible assets 7,207 — — 50,518 31,539 89,264 All other assets 15,238 44 79 205,041 (158,823 ) 61,579 Assets of discontinued operations — — — — 7,850 7,850 Total assets $ 377,041 $ 17,278 $ 111,593 $ 959,089 $ (1,109,528 ) $ 355,473 Liabilities and equity Short-term borrowings $ 177,190 $ — $ 45,994 $ 25,300 $ (218,441 ) $ 30,044 Accounts payable (1,380 ) — — 56,038 (41,375 ) 13,283 Other current liabilities 11,732 34 3 24,489 (251 ) 36,007 Long-term and non-recourse borrowings 71,784 16,703 34,601 53,234 (71,963 ) 104,359 All other liabilities 43,567 352 279 55,363 (7,667 ) 91,894 Liabilities of discontinued operations — — — — 911 911 Total Liabilities 302,893 17,089 80,878 214,424 (338,786 ) 276,498 Redeemable noncontrolling interests — — — 2,433 760 3,193 GE shareowners' equity 74,148 189 30,716 740,746 (771,651 ) 74,148 Noncontrolling interests — — — 1,486 148 1,634 Total equity 74,148 189 30,716 742,232 (771,503 ) 75,783 Total liabilities, redeemable noncontrolling interests and equity $ 377,041 $ 17,278 $ 111,593 $ 959,089 $ (1,109,528 ) $ 355,473 (a) Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $21,419 million and net assets of discontinued operations of $3,711 million . CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2016 (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Cash and equivalents $ 2,558 $ — $ 3 $ 46,994 $ (1,426 ) $ 48,129 Investment securities 1 — — 47,394 (3,082 ) 44,313 Receivables - net 63,620 17,157 30,470 79,401 (148,385 ) 42,263 Inventories 4,654 — — 21,076 (3,377 ) 22,354 Property, plant and equipment - net 5,768 — — 46,366 (1,615 ) 50,518 Investment in subsidiaries(a) 272,685 — 80,481 492,674 (845,840 ) — Goodwill and intangible assets 8,128 — — 42,074 36,673 86,875 All other assets 14,692 44 39 201,276 (160,134 ) 55,917 Assets of discontinued operations — — — — 14,815 14,815 Total assets $ 372,107 $ 17,202 $ 110,992 $ 977,255 $ (1,112,372 ) $ 365,183 Liabilities and equity Short-term borrowings $ 167,089 $ 1 $ 46,432 $ 25,919 $ (208,727 ) $ 30,714 Accounts payable 5,412 — — 47,366 (38,343 ) 14,435 Other current liabilities 11,072 33 117 25,095 114 36,431 Long-term and non-recourse borrowings 68,983 16,486 34,389 68,912 (83,273 ) 105,496 All other liabilities 43,722 511 481 58,376 (9,656 ) 93,434 Liabilities of discontinued operations — — — — 4,158 4,158 Total Liabilities 296,279 17,030 81,419 225,667 (335,727 ) 284,668 Redeemable noncontrolling interests — — — 2,223 802 3,025 GE shareowners' equity 75,828 171 29,573 747,719 (777,463 ) 75,828 Noncontrolling interests — — — 1,647 16 1,663 Total equity 75,828 171 29,573 749,366 (777,447 ) 77,491 Total liabilities, redeemable noncontrolling interests and equity $ 372,107 $ 17,202 $ 110,992 $ 977,255 $ (1,112,372 ) $ 365,183 (a) Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $28,516 million and net assets of discontinued operations of $6,012 million . CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2017 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows – operating activities Cash from (used for) operating activities - continuing operations $ 12,674 $ 25 $ 225 $ 113,799 $ (123,335 ) $ 3,389 Cash from (used for) operating activities - discontinued operations (388 ) — — (507 ) — (895 ) Cash from (used for) operating activities 12,286 25 225 113,292 (123,335 ) 2,494 Cash flows – investing activities Cash from (used for) investing activities – continuing operations (26,871 ) (25 ) 608 (60,997 ) 91,369 4,083 Cash from (used for) investing activities – discontinued operations — — — (1,922 ) — (1,922 ) Cash from (used for) investing activities (26,871 ) (25 ) 608 (62,919 ) 91,369 2,161 Cash flows – financing activities Cash from (used for) financing activities – continuing operations 16,446 — (833 ) (60,547 ) 32,845 (12,089 ) Cash from (used for) financing activities – discontinued operations — — — 1,909 — 1,909 Cash from (used for) financing activities 16,446 — (833 ) (58,639 ) 32,845 (10,181 ) Effect of currency exchange rate changes on cash and equivalents — — — 538 — 538 Increase (decrease) in cash and equivalents 1,861 — — (7,728 ) 879 (4,988 ) Cash and equivalents at beginning of year 2,558 — 3 48,423 (1,426 ) 49,558 Cash and equivalents at June 30 4,420 — 3 40,696 (547 ) 44,571 Less cash and equivalents of discontinued operations at June 30 — — — 522 — 522 Cash and equivalents of continuing operations at June 30 $ 4,420 $ — $ 3 $ 40,174 $ (547 ) $ 44,049 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2016 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows – operating activities Cash from (used for) operating activities - continuing operations $ (21,014 ) $ 182 $ 1,032 $ 10,275 $ 11,539 $ 2,014 Cash from (used for) operating activities - discontinued operations (849 ) — (996 ) (3,826 ) 821 (4,849 ) Cash from (used for) operating activities (21,863 ) 182 37 6,449 12,361 (2,835 ) 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 3,174 (16,265 ) (7,995 ) (142,451 ) 100,775 (62,763 ) Cash from (used for) financing activities – discontinued operations — — — (711 ) — (711 ) Cash from (used for) financing activities 3,174 (16,265 ) (7,995 ) (143,162 ) 100,775 (63,474 ) 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 |
SUPPLEMENTAL INFORMATION
SUPPLEMENTAL INFORMATION | 6 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
SUPPLEMENTAL INFORMATION | SUPPLEMENTAL INFORMATION CASH FLOWS INFORMATION Amounts reported in the "All other operating activities" line in the Statement of Cash Flows reflect cash sources and uses as well as non-cash adjustments to net income including those related to taxes, interest, pension, contract assets and gains (losses) on principal business dispositions. Certain supplemental information related to our cash flows is shown below. Six months ended June 30 (In millions) 2017 2016 GE All other operating activities (Gains) losses on purchases and sales of business interests $ (42 ) $ (3,140 ) Contract assets (net)(a) (3,202 ) (2,431 ) Income taxes(b) (709 ) (1,184 ) Interest charges(c) 353 182 Principal pension plans(d) 1,542 1,680 Other (1,122 ) (114 ) $ (3,180 ) $ (5,007 ) Net dispositions (purchases) of GE shares for treasury Open market purchases under share repurchase program $ (3,344 ) $ (14,244 ) Other purchases — (776 ) Dispositions 612 726 $ (2,732 ) $ (14,292 ) (a) Contract assets are presented net of related billings in excess of revenues on our long-term product service agreements. See Note 9. (b) Reflected the effects of current tax expense (benefit) of $583 million and $500 million and net cash paid during the year for income taxes of $(1,292) million and $(1,684) million for the six months ended June 30, 2017 and 2016 , respectively. Cash flows effects of deferred tax provisions (benefits) are shown separately within cash flows from operating activities. (c) Reflected the effects of interest expense of $1,200 million and $1,007 million and cash paid for interest of $(848) million and $(825) million for the six months ended June 30, 2017 and 2016 , respectively. (d) Reflected the effects of pension costs of $1,869 million and $1,780 million and employer contributions of $(327) million and $(100) million for the six months ended June 30, 2017 and 2016 , respectively. See Note 12. DERIVATIVES AND HEDGING See Note 16 for the primary information related to our derivatives and hedging activity. This section provides certain supplemental information about this topic. Changes in the fair value of derivatives are recorded in a separate component of equity (referred to below as Accumulated Other Comprehensive Income, or AOCI) and are recorded in earnings in the period in which the hedged transaction occurs. The table below summarizes this activity by hedging instrument. FAIR VALUE OF DERIVATIVES June 30, 2017 December 31, 2016 (In millions) Assets Liabilities Assets Liabilities Derivatives accounted for as hedges Interest rate contracts $ 2,728 $ 109 $ 3,106 $ 210 Currency exchange contracts 62 160 402 624 Other contracts — — — — 2,790 269 3,508 834 Derivatives not accounted for as hedges Interest rate contracts 58 10 62 20 Currency exchange contracts 1,132 2,199 1,778 4,011 Other contracts 97 34 119 17 1,287 2,242 1,958 4,048 Gross derivatives recognized in statement of financial position Gross derivatives 4,077 2,511 5,467 4,883 Gross accrued interest 470 (13 ) 768 (24 ) 4,547 2,497 6,234 4,859 Amounts offset in statement of financial position Netting adjustments(a) (1,606 ) (1,605 ) (3,097 ) (3,094 ) Cash collateral(b) (2,059 ) (462 ) (2,025 ) (1,355 ) (3,665 ) (2,066 ) (5,121 ) (4,449 ) Net derivatives recognized in statement of financial position Net derivatives 882 431 1,113 410 Amounts not offset in statement of financial position Securities held as collateral(c) (432 ) — (442 ) — Net amount $ 450 $ 431 $ 671 $ 410 Derivatives are classified in the captions "All other assets" and "All other liabilities" and the related accrued interest is classified in "Other GE Capital receivables" and "All other liabilities" in our Statement of Financial Position. (a) The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts include fair value adjustments related to our own and counterparty non-performance risk. At June 30, 2017 and December 31, 2016 , the cumulative adjustment for non-performance risk was $(1) million and $(3) million , respectively. (b) Excluded excess cash collateral received and posted of $284 million and $142 million at June 30, 2017 , respectively, and $6 million and $177 million at December 31, 2016 , respectively. (c) Excluded excess securities collateral received of $68 million and zero at June 30, 2017 and December 31, 2016 , respectively. CASH FLOW HEDGE ACTIVITY Gain (loss) recognized in AOCI Gain (loss) reclassified for the three months ended June 30 for the three months ended June 30 (In millions) 2017 2016 2017 2016 Interest rate contracts $ 3 $ 12 $ (6 ) $ (26 ) Currency exchange contracts 32 1 71 40 Commodity contracts (2 ) (1 ) — (1 ) Total(a) $ 34 $ 12 $ 65 $ 14 CASH FLOW HEDGE ACTIVITY Gain (loss) recognized in AOCI Gain (loss) reclassified for the six months ended June 30 for the six months ended June 30 (In millions) 2017 2016 2017 2016 Interest rate contracts $ 2 $ 31 $ (15 ) $ (55 ) Currency exchange contracts 54 (77 ) 79 (13 ) Commodity contracts — — — (3 ) Total(a) $ 56 $ (45 ) $ 64 $ (71 ) (a) Gain (loss) is recorded in "GE Capital revenues from services", "Interest and other financial charges", and "Other costs and expenses" in our Statement of Earnings when reclassified. The total pre-tax amount in AOCI related to cash flow hedges of forecasted transactions was a $41 million gain at June 30, 2017 . We expect to transfer $18 million loss to earnings as an expense in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions. In both the six months ended 2017 and 2016, we recognized insignificant gains and losses related to hedged forecasted transactions and firm commitments that did not occur by the end of the originally specified period. At June 30, 2017 and 2016, the maximum term of derivative instruments that hedge forecasted transactions was 15 years and 16 years, respectively. See Note 14 for additional information about reclassifications out of AOCI. For cash flow hedges, the amount of ineffectiveness in the hedging relationship and amount of the changes in fair value of the derivatives that are not included in the measurement of ineffectiveness were insignificant for each reporting period. COUNTERPARTY CREDIT RISK Fair values of our derivatives can change significantly from period to period based on, among other factors, market movements and changes in our positions. We manage counterparty credit risk (the risk that counterparties will default and not make payments to us according to the terms of our agreements) on an individual counterparty basis. Where we have agreed to netting of derivative exposures with a counterparty, we net our exposures with that counterparty and apply the value of collateral posted to us to determine the exposure. We actively monitor these net exposures against defined limits and take appropriate actions in response, including requiring additional collateral. As discussed above, we have provisions in certain of our master agreements that require counterparties to post collateral (typically, cash or U.S. Treasury securities) when our receivable due from the counterparties, measured at current market value, exceeds a specified limit. The fair value of such collateral was $2,491 million at June 30, 2017 , of which $2,059 million was cash and $432 million was in the form of securities held by a custodian for our benefit. Under certain of these same agreements, we post collateral to our counterparties for our derivative obligations, the fair value of which was $462 million at June 30, 2017 . At June 30, 2017 , our exposure to counterparties (including accrued interest), net of collateral we hold, was $320 million . This excludes exposure related to embedded derivatives. Additionally, our master agreements typically contain mutual downgrade provisions that provide the ability of each party to require termination if the long-term credit rating of the counterparty were to fall below A-/A3 or other ratings levels agreed upon with the counterparty. In certain of these master agreements, each party also has the ability to require termination if the short-term rating of the counterparty were to fall below A-1/P-1. Our master agreements also typically contain provisions that provide termination rights upon the occurrence of certain other events, such as a bankruptcy or events of default by one of the parties. If an agreement was terminated under any of these circumstances, the termination amount payable would be determined on a net basis and could also take into account any collateral posted. The net amount of our derivative liability, after consideration of collateral posted by us and outstanding interest payments was $367 million at June 30, 2017 . This excludes exposure related to embedded derivatives. |
SEGMENT OPERATIONS
SEGMENT OPERATIONS | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT OPERATIONS | SEGMENT OPERATIONS SUMMARY OF OPERATING SEGMENTS Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 V% 2017 2016 V% Revenues Power $ 6,969 $ 6,639 5 % $ 13,058 $ 11,843 10 % Renewable Energy 2,457 2,094 17 % 4,501 3,763 20 % Oil & Gas 3,108 3,219 (3) % 6,110 6,533 (6 )% Aviation 6,532 6,511 — % 13,336 12,774 4 % Healthcare 4,700 4,525 4 % 8,990 8,708 3 % Transportation 1,071 1,240 (14) % 2,110 2,222 (5 )% Energy Connections & Lighting(a) 3,210 4,401 (27) % 5,957 8,657 (31 )% Total industrial segment revenues 28,047 28,630 (2) % 54,063 54,499 (1 )% Capital 2,446 2,771 (12) % 5,127 5,656 (9 )% Total segment revenues 30,493 31,401 (3) % 59,190 60,155 (2 )% Corporate items and eliminations (935 ) 2,093 (1,972 ) 1,184 Consolidated revenues $ 29,558 $ 33,494 (12) % $ 57,219 $ 61,339 (7 )% Segment profit (loss) Power $ 1,031 $ 1,140 (10) % $ 1,827 $ 1,714 7 % Renewable Energy 160 128 25 % 267 211 27 % Oil & Gas 155 320 (52) % 361 628 (43 )% Aviation 1,492 1,348 11 % 3,176 2,872 11 % Healthcare 826 782 6 % 1,469 1,413 4 % Transportation 203 273 (26) % 359 437 (18 )% Energy Connections & Lighting(a) 80 131 (39) % 109 162 (33 )% Total industrial segment profit 3,947 4,122 (4) % 7,568 7,437 2 % Capital (172 ) (600 ) 71 % (219 ) (1,492 ) 85 % Total segment profit (loss) 3,775 3,523 7 % 7,349 5,944 24 % Corporate items and eliminations (1,583 ) 974 (3,592 ) (597 ) GE interest and other financial charges (637 ) (567 ) (1,200 ) (1,007 ) GE provision for income taxes (218 ) (629 ) (361 ) (793 ) Earnings (loss) from continuing operations attributable to GE common shareowners 1,338 3,300 (59) % 2,196 3,548 (38 )% Earnings (loss) from discontinued operations, net of taxes (146 ) (541 ) 73 % (385 ) (849 ) 55 % Less net earnings attributable to noncontrolling interests, discontinued operations 7 3 7 3 Earnings (loss) from discontinued operations, net of tax and noncontrolling interest (152 ) (544 ) 72 % (392 ) (852 ) 54 % Consolidated net earnings (loss) attributable to the GE common shareowners $ 1,185 $ 2,756 (57) % $ 1,804 $ 2,695 (33 )% (a) Beginning in the third quarter of 2017, the Energy Connections business within the Energy Connections & Lighting segment is expected to be combined with the Power segment and presented as one reporting segment called Power. REVENUES AND PROFIT Segment revenues include revenues and other income related to the segment. Segment profit is determined based on internal performance measures used by the Chief Executive Officer (CEO) to assess the performance of each business in a given period. In connection with that assessment, the CEO may exclude matters, such as charges for restructuring, rationalization and other similar expenses, acquisition costs and other related charges, technology and product development costs, certain gains and losses from acquisitions or dispositions, and litigation settlements or other charges, for which responsibility preceded the current management team. See the Corporate Items and Eliminations section within this MD&A for additional information about costs excluded from segment profit. Segment profit excludes results reported as discontinued operations and material accounting changes. Segment profit also excludes 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, income taxes, and preferred stock dividends according to how a particular segment’s management is measured: • Interest and other financial charges, income taxes and GE preferred stock dividends are excluded in determining segment profit (which we sometimes refer to as “operating profit”) for the industrial segments. • Interest and other financial charges, income taxes and GE Capital preferred stock dividends are included in determining segment profit (which we sometimes refer to as “net earnings”) for the Capital segment. 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 is allocated based on each segment’s relative net cost of operations. With respect to the segment revenue and profit walks, the overall effect of foreign exchange is included within multiple captions as follows: • The translational foreign exchange impact is included within Foreign Exchange. • The transactional impact of foreign exchange hedging is included in operating cost within Productivity and in other income within Other. |
BASIS OF PRESENTATION AND SUM30
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying consolidated financial statements represent the consolidation of General Electric Company (the Company) and all companies that we directly or indirectly control, either through majority ownership or otherwise. See Note 1 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2016 that discusses our consolidation and financial statement presentation. As used in this report on Form 10-Q (Report), “GE” represents the adding together of all affiliated companies except GE Capital (GE Capital or Financial Services), whose continuing operations are presented on a one-line basis; GE Capital consists of General Capital Global Holdings, LLC (GECGH) and all of its affiliates; and “Consolidated” represents the adding together of GE and GE Capital with the effects of transactions between the two eliminated. Unless otherwise indicated, we refer to the caption revenues and other income simply as “revenues” throughout this Form 10-Q. |
RECLASSIFICATION | We have reclassified certain prior-period amounts to conform to the current-period presentation. |
ACCOUNTING CHANGES | ACCOUNTING CHANGES On January 1, 2017, we adopted ASU 2015-11, Simplifying the Measurement of Inventory , which was intended to simplify the subsequent measurement of inventory held by an entity not measured using last-in, first-out (LIFO) or retail inventory method. The amendments eliminated the requirement that entities consider the replacement cost of inventory and the net realizable value less a normal profit margin, which was historically used to establish a floor and ceiling for an assessment of market value. The adoption of this standard was immaterial to our financial statements. On September 30, 2016, we adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which was intended to simplify several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. We adopted the standard on a prospective basis with the effect of adoption reflected for the interim periods after the year beginning January 1, 2016 as required by the standard. The primary effects of adoption were the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital and the reclassification of cash flows related to excess tax benefits from a financing activity to an operating activity for the periods beginning January 1, 2016. We will continue to estimate the number of awards that are expected to vest in our determination of the related periodic compensation cost. As a result of the adoption, our provision for income taxes decreased by $41 million and $97 million for the three and nine months ended September 30, 2016, respectively for the excess tax benefits related to share-based payments in its provision for income taxes. Application of the cash flow presentation requirements from January 1, 2016, resulted in an increase in cash from operating activities and an offsetting decrease in cash from financing activities of $59 million and $137 million for the three and nine months ended September 30, 2016, respectively. Additionally, as the adoption of the standard was reflected as of the beginning of 2016, the benefit for income taxes increased $ 19 million and $56 million for the three and six months ended June 30, 2016 , respectively, and cash flow from operating activities increased by $ 78 million with an offsetting decrease in cash from financing activities for the six months ended June 30, 2016 . |
BUSINESSES HELD FOR SALE AND 31
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Financial Information for Assets and Liabilities of Businesses Held For Sale and Discontinued Operations | FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Operations Total revenues and other income (loss) $ 9 $ 568 $ 88 $ 1,861 Earnings (loss) from discontinued operations before income taxes $ (216 ) $ (240 ) $ (412 ) $ (160 ) Benefit (provision) for income taxes (a) 66 170 128 182 Earnings (loss) from discontinued operations, net of taxes $ (150 ) $ (70 ) $ (284 ) $ 22 Disposal Gain (loss) on disposal before income taxes $ 8 $ (295 ) $ (19 ) $ (540 ) Benefit (provision) for income taxes (a) (3 ) (177 ) (81 ) (331 ) Gain (loss) on disposal, net of taxes $ 4 $ (472 ) $ (100 ) $ (871 ) Earnings (loss) from discontinued operations, net of taxes(b)(c) $ (146 ) $ (541 ) $ (385 ) $ (849 ) (a) GE Capital's total tax benefit (provision) for discontinued operations and disposals included current tax benefit (provision) of $253 million and $(47) million for the three months ended June 30, 2017 and 2016 , respectively, and $(323) million and $(881) million for the six months ended June 30, 2017 and 2016 , respectively, including current U.S. Federal tax benefit (provision) of $68 million and $29 million for the three months ended June 30, 2017 and 2016 , respectively, and $(519) million and $(471) million for the six months ended June 30, 2017 and June 30, 2016, respectively. The deferred tax benefit (provision) was $(190) million and $40 million for the three months ended June 30, 2017 and 2016 , respectively, and $370 million and $732 million for the six months ended June 30, 2017 and June 30, 2016, respectively. (b) The sum of GE Industrial earnings (loss) from discontinued operations, net of taxes, and GE Capital earnings (loss) from discontinued operations, net of taxes, after adjusting for earnings (loss) attributable to noncontrolling interests related to discontinued operations, is reported within earnings (loss) from discontinued operations, net of taxes, in the GE Industrial column of the Consolidated Statement of Earnings (Loss). (c) Earnings (loss) from discontinued operations attributable to the Company, before income taxes, was $(215) million and $(537) million for the three months ended June 30, 2017 and 2016 , respectively, and $(438) million and $(703) million for the six months ended June 30, 2017 and 2016, respectively. (In millions) June 30, 2017 December 31, 2016 Assets Cash and equivalents $ 522 $ 1,429 Investment securities 1,729 2,626 Deferred income taxes 950 487 Financing receivables held for sale 3,711 8,547 Other assets 938 1,727 Assets of discontinued operations $ 7,850 $ 14,815 Liabilities Accounts payable 87 164 Borrowings — 2,076 Other liabilities 825 1,918 Liabilities of discontinued operations $ 911 $ 4,158 FINANCIAL INFORMATION FOR ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE (In millions) June 30, 2017 December 31, 2016 Assets Current receivables(a) $ 698 $ 366 Inventories 579 211 Property, plant, and equipment – net 1,034 632 Goodwill 1,258 212 Other intangible assets – net 237 123 Contract assets 195 125 Other 96 76 Assets of businesses held for sale $ 4,096 $ 1,745 Liabilities Accounts payable $ 394 $ 190 Progress collections and price adjustments accrued 155 141 Other current liabilities 264 133 Non-current compensation and benefits 219 82 Other 162 110 Liabilities of businesses held for sale $ 1,195 $ 656 (a) Included transactions in our industrial businesses that were made on an arms-length basis with GE Capital, consisting of GE customer receivables sold to GE Capital of $ 280 million and $ 117 million at June 30, 2017 and December 31, 2016 , respectively. These intercompany balances included within our held for sale businesses are reported in the GE and GE Capital columns of our financial statements, but are eliminated in deriving our consolidated financial statements. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities | June 30, 2017 December 31, 2016 (In millions) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value (a) Amortized Gross Gross Estimated (a) Debt U.S. corporate $ 20,129 $ 3,550 $ (50 ) $ 23,629 $ 20,049 $ 3,081 $ (85 ) $ 23,046 Non-U.S. corporate 7,106 95 (19 ) 7,182 11,917 98 (27 ) 11,987 State and municipal 3,934 504 (67 ) 4,371 3,916 412 (92 ) 4,236 Mortgage and asset-backed 2,738 103 (20 ) 2,821 2,787 111 (37 ) 2,861 Government and agencies 1,664 99 (2 ) 1,761 1,842 160 (26 ) 1,976 Equity (b) 171 34 (2 ) 204 154 55 (1 ) 208 Total $ 35,743 $ 4,384 $ (159 ) $ 39,968 $ 40,665 $ 3,917 $ (269 ) $ 44,313 (a) Includes $162 million and $137 million of investment securities held by GE at June 30, 2017 and December 31, 2016, respectively, of which $107 million and $86 million are equity securities. (b) Estimated fair values include $75 million and $17 million of trading securities at June 30, 2017 and December 31, 2016, respectively. Net unrealized gains (losses) recorded to earnings related to these securities were $29 million and an insignificant amount for the three months ended and $29 million and $(2) million for the six months ended June 30, 2017 and 2016, respectively. |
Schedule of Estimated Fair Value and Gross Unrealized Losses of Available-For-Sale Investment Securities | ESTIMATED FAIR VALUE AND GROSS UNREALIZED LOSSES OF AVAILABLE-FOR-SALE INVESTMENT SECURITIES In loss position for Less than 12 months 12 months or more (In millions) Estimated fair value Gross unrealized losses Estimated Gross June 30, 2017 Debt U.S. corporate $ 957 $ (39 ) $ 233 $ (11 ) Non-U.S. corporate 5,102 (15 ) 12 (4 ) State and municipal 210 (15 ) 156 (52 ) Mortgage and asset-backed 856 (18 ) 42 (2 ) Government and agencies 437 (2 ) — — Equity 9 (2 ) — — Total $ 7,571 $ (90 ) $ 443 $ (69 ) December 31, 2016 Debt U.S. corporate $ 1,692 $ (55 ) $ 359 $ (30 ) Non-U.S. corporate 5,352 (26 ) 14 (1 ) State and municipal 674 (27 ) 158 (64 ) Mortgage and asset-backed 822 (21 ) 132 (16 ) Government and agencies 549 (26 ) — — Equity 9 (1 ) — — Total $ 9,098 $ (157 ) $ 663 $ (111 ) |
Schedule of Contractual Maturities of Investment in Available-For-Sale Debt Securities (Excluding Mortgage and Asset-Backed Securities) | CONTRACTUAL MATURITIES OF INVESTMENT IN AVAILABLE-FOR-SALE DEBT SECURITIES (EXCLUDING MORTGAGE AND ASSET-BACKED SECURITIES) (In millions) Amortized cost Estimated fair value Due Within one year $ 5,902 $ 5,900 After one year through five years 4,255 4,449 After five years through ten years 5,209 5,704 After ten years 17,468 20,890 |
CURRENT RECEIVABLES (Tables)
CURRENT RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Current Receivables | Consolidated(a)(b) GE(c) (In millions) June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 Current receivables $ 22,407 $ 24,935 $ 12,647 $ 13,562 Allowance for losses (960 ) (858 ) (949 ) (847 ) Total $ 21,447 $ 24,076 $ 11,697 $ 12,715 (a) Included GE industrial customer receivables sold to a GE Capital affiliate and recorded on GE Capital’s balance sheet of $ 10,599 million and $ 12,304 million at June 30, 2017 and December 31, 2016 , respectively. The consolidated total included a deferred purchase price receivable of $ 374 million and $ 483 million at June 30, 2017 and December 31, 2016 , respectively, related to our Receivables Facility. (b) In order to manage the credit exposure, the Company sells additional current receivables to third parties outside the Receivables Facility, substantially all of which are serviced by the Company. The outstanding balance of these current receivables was $ 2,532 million and $ 3,821 million at June 30, 2017 and December 31, 2016 , respectively. Of these balances, $ 1,187 million and $ 2,504 million was sold by GE to GE Capital prior to the sale to third parties at June 30, 2017 and December 31, 2016 , respectively. At June 30, 2017 and December 31, 2016 , our maximum exposure to loss under the limited recourse arrangements is $ 143 million and $ 215 million, respectively. (c) GE current receivables balances at June 30, 2017 and December 31, 2016 , before allowance for losses, included $ 7,955 million and $ 8,927 million, respectively, from sales of goods and services to customers. The remainder of the balances primarily relates to supplier advances, revenue sharing programs and other non-income based tax receivables. FINANCING RECEIVABLES, NET (In millions) June 30, 2017 December 31, 2016 Loans, net of deferred income $ 19,790 $ 21,101 Investment in financing leases, net of deferred income 4,973 4,998 24,764 26,099 Allowance for losses (68 ) (58 ) Financing receivables – net $ 24,696 $ 26,041 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | (In millions) June 30, 2017 December 31, 2016 Raw materials and work in process $ 12,830 $ 12,636 Finished goods 9,110 8,798 Unbilled shipments 427 536 22,367 21,971 Revaluation to LIFO 476 383 Total inventories $ 22,843 $ 22,354 |
GE CAPITAL FINANCING RECEIVAB35
GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Financing Receivables, Net | Consolidated(a)(b) GE(c) (In millions) June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 Current receivables $ 22,407 $ 24,935 $ 12,647 $ 13,562 Allowance for losses (960 ) (858 ) (949 ) (847 ) Total $ 21,447 $ 24,076 $ 11,697 $ 12,715 (a) Included GE industrial customer receivables sold to a GE Capital affiliate and recorded on GE Capital’s balance sheet of $ 10,599 million and $ 12,304 million at June 30, 2017 and December 31, 2016 , respectively. The consolidated total included a deferred purchase price receivable of $ 374 million and $ 483 million at June 30, 2017 and December 31, 2016 , respectively, related to our Receivables Facility. (b) In order to manage the credit exposure, the Company sells additional current receivables to third parties outside the Receivables Facility, substantially all of which are serviced by the Company. The outstanding balance of these current receivables was $ 2,532 million and $ 3,821 million at June 30, 2017 and December 31, 2016 , respectively. Of these balances, $ 1,187 million and $ 2,504 million was sold by GE to GE Capital prior to the sale to third parties at June 30, 2017 and December 31, 2016 , respectively. At June 30, 2017 and December 31, 2016 , our maximum exposure to loss under the limited recourse arrangements is $ 143 million and $ 215 million, respectively. (c) GE current receivables balances at June 30, 2017 and December 31, 2016 , before allowance for losses, included $ 7,955 million and $ 8,927 million, respectively, from sales of goods and services to customers. The remainder of the balances primarily relates to supplier advances, revenue sharing programs and other non-income based tax receivables. FINANCING RECEIVABLES, NET (In millions) June 30, 2017 December 31, 2016 Loans, net of deferred income $ 19,790 $ 21,101 Investment in financing leases, net of deferred income 4,973 4,998 24,764 26,099 Allowance for losses (68 ) (58 ) Financing receivables – net $ 24,696 $ 26,041 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | (In millions) June 30, 2017 December 31, 2016 Original cost $ 86,320 $ 85,875 Less accumulated depreciation and amortization (36,153 ) (35,356 ) Property, plant and equipment – net $ 50,167 $ 50,518 |
ACQUISITIONS, GOODWILL AND OT37
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Changes in Goodwill Balances | CHANGES IN GOODWILL BALANCES (In millions) Balance at January 1, 2017 Acquisitions (a) Dispositions, currency exchange and other Balance at Power $ 19,816 $ 50 $ 237 $ 20,103 Renewable Energy 2,507 1,165 126 3,799 Oil & Gas 10,363 — 93 10,457 Aviation 9,455 16 269 9,739 Healthcare 17,424 47 38 17,509 Transportation 899 — 7 906 Energy Connections & Lighting 6,868 — (859 ) 6,009 Capital 2,368 — 1 2,369 Corporate 739 688 19 1,446 Total $ 70,438 $ 1,965 $ (69 ) $ 72,335 |
Schedule of Finite-Lived Intangible Assets Subject to Amortization | OTHER INTANGIBLE ASSETS - NET (In millions) June 30, 2017 December 31, 2016 Intangible assets subject to amortization $ 16,839 $ 16,336 Indefinite-lived intangible assets(a) 90 100 Total $ 16,929 $ 16,436 (a) Indefinite-lived intangible assets principally comprise trademarks and in-process research and development. INTANGIBLE ASSETS SUBJECT TO AMORTIZATION June 30, 2017 December 31, 2016 (In millions) Gross carrying amount Accumulated amortization Net Gross carrying amount Accumulated amortization Net Customer-related $ 9,446 $ (2,742 ) $ 6,704 $ 9,172 $ (2,408 ) $ 6,764 Patents and technology 9,461 (3,502 ) 5,959 8,693 (3,325 ) 5,368 Capitalized software 7,939 (4,806 ) 3,135 7,652 (4,538 ) 3,114 Trademarks 1,209 (365 ) 843 1,165 (307 ) 858 Lease valuations 129 (69 ) 59 143 (59 ) 84 Present value of future profits(a) 701 (701 ) — 684 (684 ) — All other 239 (99 ) 140 273 (124 ) 149 Total $ 29,124 $ (12,284 ) $ 16,839 $ 27,781 $ (11,444 ) $ 16,336 (a) Balances at June 30, 2017 and December 31, 2016 include adjustments of $ 227 million and $ 241 million, respectively, to the present value of future profits in our run-off insurance activities to reflect the effects that would have been recognized had the related unrealized investment securities holding net gains actually been realized. |
Schedule of Indefinite-Lived Intangible Assets Subject to Amortization | OTHER INTANGIBLE ASSETS - NET (In millions) June 30, 2017 December 31, 2016 Intangible assets subject to amortization $ 16,839 $ 16,336 Indefinite-lived intangible assets(a) 90 100 Total $ 16,929 $ 16,436 (a) Indefinite-lived intangible assets principally comprise trademarks and in-process research and development. |
CONTRACT ASSETS (Tables)
CONTRACT ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Contractors [Abstract] | |
Schedule of Contract Assets | (In millions) June 30, 2017 December 31, 2016 GE Revenues in excess of billings Long-term product service agreements(a) $ 14,764 $ 12,752 Long-term equipment contract revenues(b) 6,774 5,859 Total revenues in excess of billings 21,538 18,611 Deferred inventory costs(c) 4,040 3,349 Non-recurring engineering costs(d) 2,295 2,185 Other 1,051 1,018 Contract assets $ 28,924 $ 25,162 (a) Long-term product service agreement balances are presented net of related billings in excess of revenues of $2,679 million and $3,750 million at June 30, 2017 and December 31, 2016 , respectively. (b) Reflects revenues earned in excess of billings on our long-term contracts to construct technically complex equipment (such as gas power systems). (c) Represents cost deferral for shipped goods (such as components for wind turbine assembly within our Renewable Energy segment) and other costs for which the revenue recognition criteria has not yet been met. (d) Includes costs incurred prior to production (such as requisition engineering) for long-term equipment production contracts, primarily within our Aviation segment, which are allocated ratably to each unit produced. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term and Long-term Borrowings | (In millions) June 30, 2017 December 31, 2016 Short-term borrowings GE Commercial paper $ 2,000 $ 1,500 Current portion of long-term borrowings 16,120 17,109 Other 2,211 1,874 Total GE short-term borrowings(a) 20,331 20,482 GE Capital U.S. Commercial paper 5,012 5,002 Current portion of long-term borrowings(b) 5,869 6,517 Intercompany payable to GE(c) 11,923 11,696 Other 569 229 Total GE Capital short-term borrowings 23,373 23,443 Eliminations(c) (13,660 ) (13,212 ) Total short-term borrowings $ 30,044 $ 30,714 Long-term borrowings GE Senior notes $ 56,699 $ 54,396 Subordinated notes 2,835 2,768 Subordinated debentures(e) 740 719 Other 1,337 928 Total GE long-term borrowings(a) 61,611 58,810 GE Capital Senior notes 40,927 44,131 Subordinated notes 218 236 Intercompany payable to GE(d) 36,293 47,084 Other(b) 1,414 1,992 Total GE Capital long-term borrowings 78,852 93,443 Eliminations(d) (36,786 ) (47,173 ) Total long-term borrowings $ 103,676 $ 105,080 Non-recourse borrowings of consolidated securitization entities(f) $ 682 $ 417 Total borrowings $ 134,402 $ 136,210 (a) Excluding assumed debt of GE Capital, the total amount of GE borrowings was $33,725 million and $20,512 million at June 30, 2017 and December 31, 2016 , respectively. (b) Included $1,781 million and $2,665 million of funding secured by aircraft and other collateral at June 30, 2017 and December 31, 2016 , respectively, of which $591 million and $1,419 million is non-recourse to GE Capital at June 30, 2017 and December 31, 2016 , respectively. (c) I ncluded a reduction of zero and $1,329 million for short-term intercompany loans from GE Capital to GE at June 30, 2017 and December 31, 2016 , respectively, which bear the right of offset against amounts owed under the assumed debt agreement. Excluding intercompany loans, total short-term assumed debt was $11,923 million and $13,024 million at June 30, 2017 and December 31, 2016 , respectively. The remaining short-term loan balance was paid in January 2017. (d) Included a reduction of $4,075 million and zero for long-term intercompany loans from GE Capital to GE at June 30, 2017 and December 31, 2016 , respectively, which bear the right of offset against amounts owed under the assumed debt agreement. Excluding intercompany loans, total long-term assumed debt was $40,368 million and $47,084 million at June 30, 2017 and December 31, 2016 , respectively. The $4,075 million of intercompany loans collectively have a weighted average interest rate of 3.6% and term of approximately 15 years. (e) Comprises subordinated debentures which constitute the sole assets of trusts that have issued trust preferred securities and where GE owns 100% of the common securities of the trusts. Obligations associated with these trusts are unconditionally guaranteed by GE. (f) Included $528 million and $320 million of current portion of long-term borrowings at June 30, 2017 and December 31, 2016 , respectively. See Note 17. |
INVESTMENT CONTRACTS, INSURAN40
INVESTMENT CONTRACTS, INSURANCE LIABILITIES AND INSURANCE ANNUITY BENEFITS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Insurance [Abstract] | |
Schedule of Insurance and Investment Contract Liabilities | Insurance and investment contract liabilities comprise mainly obligations to policyholders and annuitants in our run-off insurance activities. (In millions) June 30, 2017 December 31, 2016 Future policy benefit reserves(a) $ 19,105 $ 18,741 Investment contracts 2,671 2,813 Other(b) 5,241 4,992 27,016 26,546 Eliminations (545) (460) Total $ 26,471 $ 26,086 (a) The future policy benefit reserve is subject to an annual review to determine its adequacy. Should the liability for future policy benefits plus the present value of expected future gross premiums be insufficient to provide for the present value of expected future policy benefits and expenses, a premium deficiency would be recorded. (b) Substantially all unpaid claims and claims adjustment expenses and unearned premiums. |
POSTRETIREMENT BENEFIT PLANS (T
POSTRETIREMENT BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Effect on Operations of Pension Plans and Principal Retiree Benefit Plans | EFFECT ON OPERATIONS OF PENSION PLANS Principal pension plans Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Service cost for benefits earned $ 254 $ 291 $ 543 $ 606 Prior service cost amortization 72 76 145 152 Expected return on plan assets (849 ) (836 ) (1,698 ) (1,670 ) Interest cost on benefit obligations 712 735 1,429 1,469 Net actuarial loss amortization 697 612 1,407 1,224 Curtailment loss (gain) — (1 ) 43 (a) (1 ) Pension plans cost $ 886 $ 877 $ 1,869 $ 1,780 (a) Curtailment loss resulting from our intent to sell the Industrial Solutions business within our Energy Connections & Lighting segment. Other pension plans Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Service cost for benefits earned $ 123 $ 118 $ 274 $ 231 Prior service credit amortization (1 ) — (2 ) (1 ) Expected return on plan assets (301 ) (259 ) (595 ) (522 ) Interest cost on benefit obligations 145 168 287 340 Net actuarial loss amortization 107 65 210 129 Pension plans cost $ 73 $ 92 $ 174 $ 177 EFFECT ON OPERATIONS OF PRINCIPAL RETIREE BENEFIT PLANS Principal retiree benefit plans Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Service cost for benefits earned $ 26 $ 27 $ 52 $ 52 Prior service credit amortization (43 ) (41 ) (86 ) (82 ) Expected return on plan assets (9 ) (11 ) (18 ) (22 ) Interest cost on benefit obligations 56 63 113 126 Net actuarial gain amortization (20 ) (14 ) (41 ) (27 ) Curtailment loss — — 3 (a) — Retiree benefit plans cost $ 10 $ 24 $ 23 $ 47 (a) Curtailment loss resulting from our intent to sell the Industrial Solutions business within our Energy Connections & Lighting segment. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Unrecognized Tax Benefits | UNRECOGNIZED TAX BENEFITS (In millions) June 30, 2017 December 31, 2016 Unrecognized tax benefits $ 4,760 $ 4,692 Portion that, if recognized, would reduce tax expense and effective tax rate(a) 2,894 2,886 Accrued interest on unrecognized tax benefits 682 615 Accrued penalties on unrecognized tax benefits 119 118 Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months 0-600 0-600 Portion that, if recognized, would reduce tax expense and effective tax rate(a) 0-500 0-500 (a) Some portion of such reduction may be reported as discontinued operations. |
SHAREOWNERS' EQUITY (Tables)
SHAREOWNERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Investment securities Beginning balance $ 622 $ 680 $ 674 $ 460 Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes of $146, $222, $159 and $304 291 419 309 578 Reclassifications from OCI – net of deferred taxes of $(25), $(9), $(61) and $31 (48 ) (21 ) (118 ) 39 Other comprehensive income (loss)(a) 243 397 191 617 Less OCI attributable to noncontrolling interests — — — — Ending balance $ 866 $ 1,077 $ 866 $ 1,077 Currency translation adjustments (CTA) Beginning balance $ (6,004 ) $ (5,500 ) $ (6,816 ) $ (5,499 ) OCI before reclassifications – net of deferred taxes of $(207), $(50), $(241) and $217 491 26 753 141 Reclassifications from OCI – net of deferred taxes of $(1), $(39), $(541) and $80 34 29 588 (85 ) Other comprehensive income (loss)(a) 525 55 1,341 57 Less OCI attributable to noncontrolling interests 2 3 6 6 Ending balance $ (5,481 ) $ (5,448 ) $ (5,481 ) $ (5,448 ) Cash flow hedges Beginning balance $ 32 $ (26 ) $ 12 $ (80 ) OCI before reclassifications – net of deferred taxes of $(8), $2, $(2) and $(5) 44 (15 ) 64 (40 ) Reclassifications from OCI – net of deferred taxes of $(10), $(4), $(9) and $1 (54 ) (10 ) (55 ) 69 Other comprehensive income (loss)(a) (10 ) (25 ) 9 30 Less OCI attributable to noncontrolling interests — — — — Ending balance $ 22 $ (51 ) $ 22 $ (51 ) Benefit plans Beginning balance $ (11,421 ) $ (10,859 ) $ (12,469 ) $ (11,410 ) Prior service credit (costs) - net of deferred taxes of $0, $0, $0 and $5 — — — 23 Net actuarial gain (loss) – net of deferred taxes of $32, $(65), $133 and $(43) 24 (80 ) 500 (12 ) Net curtailment/settlement - net of deferred taxes of $0, $0, $16 and $0 — (1 ) 30 (1 ) Prior service cost amortization – net of deferred taxes of $19, $20, $38 and $41 10 17 21 33 Net actuarial loss amortization – net of deferred taxes of $251, $217, $504 and $433 526 447 1,059 890 Other comprehensive income (loss)(a) 560 382 1,610 933 Less OCI attributable to noncontrolling interests (1 ) — 1 (1 ) Ending balance $ (10,860 ) $ (10,476 ) $ (10,860 ) $ (10,476 ) Accumulated other comprehensive income (loss) at June 30 $ (15,454 ) $ (14,898 ) $ (15,454 ) $ (14,898 ) (a) Total other comprehensive income (loss) was $1,318 million and $810 million in the three months ended June 30, 2017 and 2016 , respectively, and $3,151 million and $1,636 million in the six months ended June 30, 2017 and 2016 respectively. |
Schedule of Reclassification Out of AOCI | RECLASSIFICATION OUT OF AOCI Three months ended Six months ended June 30 June 30 (In millions) 2017 2016 2017 2016 Statement of Earnings caption Available-for-sale securities Gains (losses) on securities $ 73 $ 30 $ 178 $ (70 ) Total revenues and other income(a) Income taxes (25 ) (9 ) (61 ) 31 Benefit (provision) for income taxes(b) Net of tax $ 48 $ 21 $ 118 $ (39 ) Currency translation adjustments Gains (losses) on dispositions $ (33 ) $ 10 $ (47 ) $ 5 Total revenues and other income(c) Income taxes (1 ) (39 ) (541 ) 80 Benefit (provision) for income taxes(d) Net of tax $ (34 ) $ (29 ) $ (588 ) $ 85 Cash flow hedges Gains (losses) on interest rate derivatives $ (15 ) $ (26 ) $ (15 ) $ (55 ) Interest and other financial charges Foreign exchange contracts 78 37 78 (5 ) (e) Other 1 2 1 (11 ) (f) Total before tax 65 14 64 (71 ) Income taxes (10 ) (4 ) (9 ) 1 Benefit (provision) for income taxes Net of tax $ 54 $ 10 $ 55 $ (69 ) Benefit plan items Curtailment gain (loss) $ — $ 1 $ (46 ) $ 1 (g) Amortization of prior service costs (29 ) (37 ) (59 ) (74 ) (g) Amortization of actuarial gains (losses) (777 ) (664 ) (1,563 ) (1,323 ) (g) Total before tax (806 ) (700 ) (1,668 ) (1,396 ) Income taxes 270 237 558 474 Benefit (provision) for income taxes Net of tax $ (536 ) $ (463 ) $ (1,110 ) $ (922 ) Total reclassification adjustments (net of tax) $ (467 ) $ (461 ) $ (1,525 ) $ (946 ) (a) Included an insignificant amount and $6 million for the three months ended June 30, 2017 and 2016 , and an insignificant amount and $(72) million for the six months ended June 30, 2017 and 2016, respectively in earnings (loss) from discontinued operations, net of taxes. (b) Included an insignificant amount and $(1) million for the three months ended June 30, 2017 and 2016 , and an insignificant amount and $31 million for the six months ended June 30, 2017 and 2016 respectively in earnings (loss) from discontinued operations, net of taxes. (c) Included $3 million and $77 million for the three months ended June 30, 2017 and 2016 , and $32 m illion and $71 million for the six months ended June 30, 2017 and 2016 respectively in earnings (loss) from discontinued operations, net of taxes. (d) Included $(1) million and $(39) million for the three months ended June 30, 2017 and 2016 , and $(541) million and $80 million for the six months ended June 30, 2017 and 2016 respectively in earnings (loss) from discontinued operations, net of taxes (e) Primarily includes $76 million and $53 million in GE Capital revenues from services and $(10) million and $(17) million in interest and other financial charges in the three months ended June 30, 2017 and 2016 , respectively and $101 million and $31 million in GE Capital revenues from services and $(23) million and $(36) million in interest and other financial charges in the six months ended June 30, 2017 and 2016, respectively. (f) Primarily recorded in costs and expenses. (g) Curtailment gain (loss), amortization of prior service costs and actuarial gains and losses out of AOCI are included in the computation of net periodic pension costs. See Note 12 for further information. |
Schedule of Changes to Noncontrolling Interests | CHANGES TO NONCONTROLLING INTERESTS Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Beginning balance $ 1,639 $ 1,667 $ 1,663 $ 1,864 Net earnings (loss) 14 1 20 (68 ) Dividends (22 ) (14 ) (31 ) (21 ) Dispositions 5 — (8 ) (42 ) Other (including AOCI)(a)(b) (3 ) 39 (10 ) (40 ) Ending balance at June 30 $ 1,634 $ 1,693 $ 1,634 $ 1,693 (a) Includes research & development partner funding arrangements and acquisitions. (b) 2016 included $(123) million for deconsolidation of investment funds managed by GE Asset Management (GEAM) upon the adoption of ASU 2015-02, Amendments to the Consolidation Analysis, and prior to the July 1, 2016 sale of GEAM. |
Schedule of Changes to Redeemable Noncontrolling Interests | CHANGES TO REDEEMABLE NONCONTROLLING INTERESTS Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Beginning balance $ 3,054 $ 3,036 $ 3,025 $ 2,972 Net earnings (loss) (28 ) (86 ) (109 ) (139 ) Dividends — — (11 ) (9 ) Redemption value adjustment 43 79 114 110 Other 125 42 173 135 Ending balance at June 30(a) $ 3,193 $ 3,070 $ 3,193 $ 3,070 (a) Included $2,894 million and $2,950 million related to the Alstom joint ventures at June 30, 2017 and 2016, respectively. |
EARNINGS PER SHARE INFORMATION
EARNINGS PER SHARE INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three months ended June 30 2017 2016 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Amounts attributable to the Company: Consolidated Earnings from continuing operations for per-share calculation(a)(b) $ 1,514 $ 1,514 $ 3,446 $ 3,449 Preferred stock dividends (182 ) (182 ) (152 ) (152 ) Earnings from continuing operations attributable to common shareowners for per-share calculation(a)(b) $ 1,332 $ 1,332 $ 3,294 $ 3,297 Loss from discontinued operations for per-share calculation(a)(b) (157 ) (157 ) (546 ) (543 ) Net earnings attributable to GE common shareowners for per-share calculation(a)(b) $ 1,179 $ 1,179 $ 2,751 $ 2,753 Average equivalent shares Shares of GE common stock outstanding 8,671 8,671 9,079 9,079 Employee compensation-related shares (including stock options) 89 — 108 — Total average equivalent shares 8,760 8,671 9,187 9,079 Per-share amounts Earnings from continuing operations $ 0.15 $ 0.15 $ 0.36 $ 0.36 Loss from discontinued operations (0.02 ) (0.02 ) (0.06 ) (0.06 ) Net earnings 0.13 0.14 0.30 0.30 Six months ended June 30 2017 2016 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Amounts attributable to the Company: Consolidated Earnings from continuing operations for per-share calculation(a)(b) $ 2,401 $ 2,400 $ 3,981 $ 3,983 Preferred stock dividends (216 ) (216 ) (441 ) (441 ) Earnings from continuing operations attributable to common shareowners for per-share calculation(a)(b) $ 2,185 $ 2,184 $ 3,540 $ 3,542 Loss from discontinued operations for per-share calculation(a)(b) (399 ) (400 ) (861 ) (858 ) Net earnings attributable to GE common shareowners for per-share calculation(a)(b) $ 1,793 $ 1,793 $ 2,687 $ 2,690 Average equivalent shares Shares of GE common stock outstanding 8,695 8,695 9,179 9,179 Employee compensation-related shares (including stock options) 94 — 101 — Total average equivalent shares 8,789 8,695 9,281 9,179 Per-share amounts Earnings from continuing operations $ 0.25 $ 0.25 $ 0.38 $ 0.39 Loss from discontinued operations (0.05 ) (0.05 ) (0.09 ) (0.09 ) Net earnings 0.20 0.21 0.29 0.29 (a) Our unvested restricted stock unit awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities. For the three months ended June 30, 2017 pursuant to the two-class method, as a result of excess dividends in respect to the current period earnings, losses were not allocated to the participating securities. For the three months ended June 30, 2016 , participating securities are included in the computation of earnings per share pursuant to the two-class method and the application of this treatment had an insignificant effect. For the six months ended June 30, 2017 and 2016 , pursuant to the two-class method, as a result of excess dividends in respect to the current period earnings, losses were not allocated to the participating securities. (b) Included an insignificant amount of dividend equivalents in each of the periods presented. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Information About Assets and Liabilities Not Carried at Fair Value | The following table provides information about assets and liabilities not carried at fair value. The table excludes finance leases and non-financial assets and liabilities. Substantially all of the assets discussed below are considered to be Level 3. The vast majority of our liabilities’ fair value can be determined based on significant observable inputs and thus considered Level 2. Few of the instruments are actively traded and their fair values must often be determined using financial models. Realization of the fair value of these instruments depends upon market forces beyond our control, including marketplace liquidity. June 30, 2017 December 31, 2016 (In millions) Carrying amount (net) Estimated fair value Carrying amount (net) Estimated fair value GE Assets Investments and notes receivable $ 1,305 $ 1,355 $ 1,526 $ 1,595 Liabilities Borrowings(a)(b) 29,650 30,455 19,184 19,923 Borrowings (debt assumed)(a)(c) 52,291 59,603 60,109 66,998 GE Capital Assets Loans 19,740 19,774 21,060 20,830 Other commercial mortgages 1,471 1,554 1,410 1,472 Loans held for sale 604 604 473 473 Other financial instruments(d) 116 149 121 150 Liabilities Borrowings(a)(e)(f)(g) 54,691 58,752 58,523 62,024 Investment contracts 2,671 3,130 2,813 3,277 (a) See Note 10. (b) Included $ 107 million and $ 115 million of accrued interest in estimated fair value at June 30, 2017 and December 31, 2016 , respectively. (c) Included $ 553 million and $ 803 million of accrued interest in estimated fair value at June 30, 2017 and December 31, 2016 , respectively. (d) Principally comprises cost method investments. (e) Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at June 30, 2017 and December 31, 2016 would have been reduced by $ 2,478 million and $ 2,397 million, respectively. (f) Included $ 808 million and $ 775 million of accrued interest in estimated fair value at June 30, 2017 and December 31, 2016 , respectively. (g) Excluded $ 48,216 million and $ 58,780 million of net intercompany payable to GE at June 30, 2017 and December 31, 2016 , respectively |
Schedule of Notional Amounts of Loan Commitments | NOTIONAL AMOUNTS OF LOAN COMMITMENTS (In millions) June 30, 2017 December 31, 2016 Ordinary course of business lending commitments(a) $ 789 $ 687 Unused revolving credit lines 229 238 (a) Excluded investment commitments of $ 259 million and $ 522 million at June 30, 2017 and December 31, 2016 , respectively. |
Schedule of Financial Statement Effects - Cash Flow Hedges | FINANCIAL STATEMENT EFFECTS - CASH FLOW HEDGES Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Balance sheet changes Fair value of derivatives increase (decrease) $ 34 $ 11 $ 56 $ (45 ) Shareowners' equity (increase) decrease (34 ) (12 ) (56 ) 45 Earnings (loss) related to ineffectiveness — — — 1 Earnings (loss) effect of derivatives(a) 65 14 64 (71 ) (a) Offsets earnings effect of the hedged forecasted transaction |
Schedule of Financial Statement Effects - Fair Value Hedges | FINANCIAL STATEMENT EFFECTS - FAIR VALUE HEDGES Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Balance sheet changes Fair value of derivative increase (decrease) $ (57 ) $ 888 $ (282 ) $ 2,610 Adjustment to carrying amount of hedged debt (increase) decrease 2 (933 ) 164 (2,688 ) Earnings (loss) related to hedge ineffectiveness (56 ) (46 ) (118 ) (77 ) |
Schedule of Financial Statement Effects - Net Investment Hedges | FINANCIAL STATEMENT EFFECTS - NET INVESTMENT HEDGES Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Balance sheet changes Fair value of derivatives increase (decrease) $ (98 ) $ (282 ) $ (191 ) $ 47 Fair value of non-derivative instruments (increase) decrease (389 ) (322 ) (859 ) (49 ) Shareowners' equity (increase) decrease 490 609 1,063 40 Earnings (loss) related to spot-forward differences and ineffectiveness 3 5 13 37 Earnings (loss) related to reclassification upon sale or liquidation(a) — (380 ) 59 (1,072 ) (a) Included zero and $(380) million recorded in discontinued operations in the three months ended June 30, 2017 and 2016 and $59 million and $(1,072) million recorded in discontinued operations in the six months ended June 30, 2017 and 2016 , respectively. |
Schedule of Financial Statement Effects - Economic Hedges | FINANCIAL STATEMENT EFFECTS - ECONOMIC HEDGES Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Balance sheet changes Change in fair value of economic hedge increase (decrease) $ 979 $ 157 $ 641 $ (122 ) Change in carrying amount of item being hedged increase (decrease) (1,180 ) (286 ) (956 ) (198 ) Earnings (loss) effect of economic hedges(a) (200 ) (130 ) (315 ) (321 ) (a) Offset by the future earnings effects of economically hedged item. |
Schedule of Carrying Amounts Related to Derivatives | The table below provides additional information about how derivatives are reflected in our financial statements. CARRYING AMOUNTS RELATED TO DERIVATIVES (In millions) June 30, 2017 December 31, 2016 Derivative assets $ 4,077 $ 5,467 Derivative liabilities (2,511 ) (4,883) Accrued interest 484 792 Cash collateral & credit valuation adjustment (1,599 ) (672) Net Derivatives 451 703 Securities held as collateral (432 ) (442) Net amount $ 19 $ 262 |
Schedule of Effects of Derivatives on Earnings | Three months ended June 30 Six months ended June 30 (In millions) Effect on hedging instrument Effect on underlying Effect on earnings Effect on hedging instrument Effect on underlying Effect on earnings 2017 Cash flow hedges $ 34 $ (34 ) $ — $ 56 $ (56 ) $ — Fair value hedges (57 ) 2 (56 ) (282 ) 164 (118 ) Net investment hedges(a) (487 ) 490 3 (1,050 ) 1,063 13 Economic hedges(b) 979 (1,180 ) (200 ) 641 (956 ) (315 ) Total $ (253 ) $ (420 ) 2016 Cash flow hedges $ 11 $ (12 ) $ — $ (45 ) $ 45 $ 1 Fair value hedges 888 (933 ) (46 ) 2,610 (2,688 ) (77 ) Net investment hedges(a) (604 ) 609 5 (2 ) 40 37 Economic hedges(b) 157 (286 ) (130 ) (122 ) (198 ) (321 ) Total $ (171 ) $ (360 ) The amounts in the table above generally do not include associated derivative accruals in income or expense. (a) Both derivatives and non-derivatives hedging instruments are included. (b) Net effect is substantially offset by the change in fair value of the hedged item that will affect earnings in future periods. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Variable Interest Entities [Abstract] | |
Schedule of Assets and Liabilities of Consolidated VIEs | ASSETS AND LIABILITIES OF CONSOLIDATED VIEs GE Capital (In millions) GE Customer Notes receivables(a) Other Total June 30, 2017 Assets Financing receivables, net $ — $ — $ 881 $ 881 Current receivables 56 560 — 616 Investment securities — — 1,004 1,004 Other assets 587 1,320 2,101 4,008 Total $ 643 $ 1,880 $ 3,986 $ 6,509 Liabilities Borrowings $ 38 $ — $ 1,134 $ 1,172 Non-recourse borrowings — 667 16 683 Other liabilities 494 1,185 1,555 3,234 Total $ 532 $ 1,852 $ 2,705 $ 5,089 December 31, 2016 Assets Financing receivables, net $ — $ — $ 1,035 $ 1,035 Current receivables 57 670 — 727 Investment securities — — 982 982 Other assets 492 1,122 1,747 3,361 Total $ 549 $ 1,792 $ 3,764 $ 6,105 Liabilities Borrowings $ 1 $ — $ 818 $ 819 Non-recourse borrowings — 401 16 417 Other liabilities 457 1,378 1,482 3,317 Total $ 458 $ 1,779 $ 2,316 $ 4,553 (a) Two funding vehicles established to purchase customer notes receivable from GE, one of which is partially funded by third-party debt. |
COMMITMENTS, GUARANTEES, PROD47
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranties | An analysis of changes in the liability for product warranties follows. Six months ended June 30 (In millions) 2017 2016 Balance at January 1 $ 1,920 $ 1,723 Current-year provisions 354 339 Expenditures (414 ) (343 ) Other changes(a) 109 113 Balance as of June 30 $ 1,969 $ 1,832 ( a) Primarily includes effect of currency exchange and acquisitions. |
Rollforward of the Reserve | ROLLFORWARD OF THE RESERVE Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 2017 2016 Balance, beginning of period $ 626 $ 833 $ 626 $ 875 Provision 10 27 10 84 Claim resolutions / rescissions — — — (99 ) Balance, end of period $ 636 $ 860 $ 636 $ 860 |
INTERCOMPANY TRANSACTIONS (Tabl
INTERCOMPANY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Intercompany Eliminations | Presented below is a walk of intercompany eliminations from the combined GE and GE Capital totals to the consolidated cash flows from continuing operations. Six months ended June 30 (In millions) 2017 2016 Cash from (used for) operating activities-continuing operations Combined $ 5,549 $ 11,207 GE current receivables sold to GE Capital 1,598 1,313 GE Capital dividends to GE (4,016 ) (11,000 ) Other reclassifications and eliminations(a) 258 494 Total cash from (used for) operating activities-continuing operations $ 3,389 $ 2,014 Cash from (used for) investing activities-continuing operations Combined $ 3,173 $ 39,495 GE current receivables sold to GE Capital (1,760 ) (1,643 ) GE Capital long-term loans to GE 4,075 — GE Capital short-term loan to GE (1,329 ) 5,002 Other reclassifications and eliminations(a) (76 ) (441 ) Total cash from (used for) investing activities-continuing operations $ 4,083 $ 42,414 Cash from (used for) financing activities-continuing operations Combined $ (13,339 ) $ (69,038 ) GE current receivables sold to GE Capital 162 330 GE Capital dividends to GE 4,016 11,000 GE Capital long-term loans to GE (4,075 ) — GE Capital short-term loan to GE 1,329 (5,002 ) Other reclassifications and eliminations(a) (182 ) (52 ) Total cash from (used for) financing activities-continuing operations $ (12,089 ) $ (62,763 ) (a) Includes eliminations of other cash flows activities including those related to GE Capital enabled GE industrial orders, various investments, loans and allocations of GE corporate overhead costs. |
GUARANTOR FINANCIAL INFORMATI49
GUARANTOR FINANCIAL INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Statement of Earnings (Loss) and Comprehensive Income (Loss) | CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED JUNE 30, 2017 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues and other income Sales of goods and services $ 8,080 $ — $ — $ 37,615 $ (18,456 ) $ 27,239 Other income 27,632 — — 28,005 (55,339 ) 298 Equity in earnings (loss) of affiliates (25,246 ) — 450 13,982 10,813 — GE Capital revenues from services — 173 188 2,589 (928 ) 2,022 Total revenues and other income 10,467 173 638 82,191 (63,910 ) 29,558 Costs and expenses Interest and other financial charges 767 159 489 1,221 (1,463 ) 1,174 Other costs and expenses 8,557 — 9 37,570 (19,265 ) 26,870 Total costs and expenses 9,324 159 497 38,791 (20,728 ) 28,044 Earnings (loss) from continuing operations before income taxes 1,143 14 141 43,400 (43,183 ) 1,515 Benefit (provision) for income taxes 370 (2 ) — (230 ) (154 ) (15 ) Earnings (loss) from continuing operations 1,513 12 141 43,170 (43,336 ) 1,499 Earnings (loss) from discontinued operations, net of taxes (146 ) — (5 ) 3 2 (146 ) Net earnings (loss) 1,367 12 136 43,172 (43,334 ) 1,354 Less net earnings (loss) attributable to noncontrolling interests — — — 16 (30 ) (14 ) Net earnings (loss) attributable to the Company 1,367 12 136 43,156 (43,304 ) 1,367 Other comprehensive income (loss) 1,317 — 32 (25,537 ) 25,505 1,317 Comprehensive income (loss) attributable to the Company $ 2,685 $ 12 $ 168 $ 17,619 $ (17,799 ) $ 2,685 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED JUNE 30, 2016 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating 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 ) 0 GE Capital revenues from services 0 200 722 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 Other costs and expenses 11,601 — 19 38,786 (22,062 ) 28,344 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 312 (3 ) (43 ) (473 ) (254 ) (461 ) Earnings (loss) from continuing operations 3,486 22 (22 ) 30,639 (30,762 ) 3,363 Earnings (loss) from discontinued operations, net of taxes (541 ) — (521 ) 600 (80 ) (541 ) Net earnings (loss) 2,946 22 (542 ) 31,239 (30,841 ) 2,823 Less net earnings (loss) attributable to noncontrolling interests — — — (66 ) (20 ) (86 ) Net earnings (loss) attributable to the Company 2,946 22 (542 ) 31,305 (30,822 ) 2,908 Other comprehensive income (loss) 807 — 246 579 (825 ) 807 Comprehensive income (loss) attributable to the Company $ 3,753 $ 22 $ (297 ) $ 31,884 $ (31,646 ) $ 3,715 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2017 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues and other income Sales of goods and services $ 16,872 $ — $ — $ 73,705 $ (38,110 ) $ 52,467 Other income 27,686 — — 32,625 (59,845 ) 465 Equity in earnings (loss) of affiliates (22,802 ) — 692 50,664 (28,555 ) — GE Capital revenues from services — 329 374 4,859 (1,275 ) 4,286 Total revenues and other income 21,756 329 1,066 161,853 (127,786 ) 57,219 Costs and expenses Interest and other financial charges 1,677 309 943 2,303 (2,920 ) 2,313 Other costs and expenses 18,186 — 22 73,511 (39,159 ) 52,560 Total costs and expenses 19,862 309 965 75,814 (42,078 ) 54,872 Earnings (loss) from continuing operations before income taxes 1,894 20 101 86,039 (85,707 ) 2,346 Benefit (provision) for income taxes 514 (2 ) 115 (699 ) 41 (31 ) Earnings (loss) from continuing operations 2,408 17 215 85,341 (85,666 ) 2,315 Earnings (loss) from discontinued operations, net of taxes (388 ) — 278 3 (278 ) (385 ) Net earnings (loss) 2,020 17 493 85,344 (85,944 ) 1,931 Less net earnings (loss) attributable to noncontrolling interests — — — (32 ) (57 ) (90 ) Net earnings (loss) attributable to the Company 2,020 17 493 85,376 (85,887 ) 2,020 Other comprehensive income (loss) 3,144 — 649 (26,994 ) 26,345 3,144 Comprehensive income (loss) attributable to the Company $ 5,164 $ 17 $ 1,142 $ 58,382 $ (59,542 ) $ 5,164 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2016 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating 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 ) 0 GE Capital revenues from services 0 596 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 Other costs and expenses 22,057 — 55 74,624 (42,522 ) 54,214 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 931 (6 ) (46 ) (958 ) (205 ) (284 ) Earnings (loss) from continuing operations 3,986 42 (26 ) 47,964 (48,187 ) 3,779 Earnings (loss) from discontinued operations, net of taxes (849 ) — (996 ) 174 821 (849 ) Net earnings (loss) 3,137 42 (1,022 ) 48,138 (47,366 ) 2,930 Less net earnings (loss) attributable to noncontrolling interests — — — (91 ) (116 ) (207 ) Net earnings (loss) attributable to the Company 3,137 42 (1,022 ) 48,230 (47,250 ) 3,137 Other comprehensive income (loss) 1,631 (12 ) 63 847 (898 ) 1,631 Comprehensive income (loss) attributable to the Company $ 4,767 $ 30 $ (958 ) $ 49,076 $ (48,148 ) $ 4,767 |
Condensed Consolidating Statement of Financial Position | CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION JUNE 30, 2017 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Cash and equivalents $ 4,420 $ — $ 3 $ 40,174 $ (547 ) $ 44,049 Investment securities 1 — — 42,065 (2,098 ) 39,968 Receivables - net 54,549 17,233 31,020 80,421 (143,470 ) 39,753 Inventories 5,265 — — 22,111 (4,533 ) 22,843 Property, plant and equipment - net 5,891 — — 46,284 (2,007 ) 50,167 Investment in subsidiaries(a) 284,471 — 80,491 472,477 (837,439 ) 0 Goodwill and intangible assets 7,207 — — 50,518 31,539 89,264 All other assets 15,238 44 79 205,041 (158,823 ) 61,579 Assets of discontinued operations — — — — 7,850 7,850 Total assets $ 377,041 $ 17,278 $ 111,593 $ 959,089 $ (1,109,528 ) $ 355,473 Liabilities and equity Short-term borrowings $ 177,190 $ — $ 45,994 $ 25,300 $ (218,441 ) $ 30,044 Accounts payable (1,380 ) — — 56,038 (41,375 ) 13,283 Other current liabilities 11,732 34 3 24,489 (251 ) 36,007 Long-term and non-recourse borrowings 71,784 16,703 34,601 53,234 (71,963 ) 104,359 All other liabilities 43,567 352 279 55,363 (7,667 ) 91,894 Liabilities of discontinued operations — — — — 911 911 Total Liabilities 302,893 17,089 80,878 214,424 (338,786 ) 276,498 Redeemable noncontrolling interests — — — 2,433 760 3,193 GE shareowners' equity 74,148 189 30,716 740,746 (771,651 ) 74,148 Noncontrolling interests — — — 1,486 148 1,634 Total equity 74,148 189 30,716 742,232 (771,503 ) 75,783 Total liabilities, redeemable noncontrolling interests and equity $ 377,041 $ 17,278 $ 111,593 $ 959,089 $ (1,109,528 ) $ 355,473 (a) Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $21,419 million and net assets of discontinued operations of $3,711 million . CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2016 (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Cash and equivalents $ 2,558 $ — $ 3 $ 46,994 $ (1,426 ) $ 48,129 Investment securities 1 — — 47,394 (3,082 ) 44,313 Receivables - net 63,620 17,157 30,470 79,401 (148,385 ) 42,263 Inventories 4,654 — — 21,076 (3,377 ) 22,354 Property, plant and equipment - net 5,768 — — 46,366 (1,615 ) 50,518 Investment in subsidiaries(a) 272,685 — 80,481 492,674 (845,840 ) — Goodwill and intangible assets 8,128 — — 42,074 36,673 86,875 All other assets 14,692 44 39 201,276 (160,134 ) 55,917 Assets of discontinued operations — — — — 14,815 14,815 Total assets $ 372,107 $ 17,202 $ 110,992 $ 977,255 $ (1,112,372 ) $ 365,183 Liabilities and equity Short-term borrowings $ 167,089 $ 1 $ 46,432 $ 25,919 $ (208,727 ) $ 30,714 Accounts payable 5,412 — — 47,366 (38,343 ) 14,435 Other current liabilities 11,072 33 117 25,095 114 36,431 Long-term and non-recourse borrowings 68,983 16,486 34,389 68,912 (83,273 ) 105,496 All other liabilities 43,722 511 481 58,376 (9,656 ) 93,434 Liabilities of discontinued operations — — — — 4,158 4,158 Total Liabilities 296,279 17,030 81,419 225,667 (335,727 ) 284,668 Redeemable noncontrolling interests — — — 2,223 802 3,025 GE shareowners' equity 75,828 171 29,573 747,719 (777,463 ) 75,828 Noncontrolling interests — — — 1,647 16 1,663 Total equity 75,828 171 29,573 749,366 (777,447 ) 77,491 Total liabilities, redeemable noncontrolling interests and equity $ 372,107 $ 17,202 $ 110,992 $ 977,255 $ (1,112,372 ) $ 365,183 (a) Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $28,516 million and net assets of discontinued operations of $6,012 million . |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2017 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows – operating activities Cash from (used for) operating activities - continuing operations $ 12,674 $ 25 $ 225 $ 113,799 $ (123,335 ) $ 3,389 Cash from (used for) operating activities - discontinued operations (388 ) — — (507 ) — (895 ) Cash from (used for) operating activities 12,286 25 225 113,292 (123,335 ) 2,494 Cash flows – investing activities Cash from (used for) investing activities – continuing operations (26,871 ) (25 ) 608 (60,997 ) 91,369 4,083 Cash from (used for) investing activities – discontinued operations — — — (1,922 ) — (1,922 ) Cash from (used for) investing activities (26,871 ) (25 ) 608 (62,919 ) 91,369 2,161 Cash flows – financing activities Cash from (used for) financing activities – continuing operations 16,446 — (833 ) (60,547 ) 32,845 (12,089 ) Cash from (used for) financing activities – discontinued operations — — — 1,909 — 1,909 Cash from (used for) financing activities 16,446 — (833 ) (58,639 ) 32,845 (10,181 ) Effect of currency exchange rate changes on cash and equivalents — — — 538 — 538 Increase (decrease) in cash and equivalents 1,861 — — (7,728 ) 879 (4,988 ) Cash and equivalents at beginning of year 2,558 — 3 48,423 (1,426 ) 49,558 Cash and equivalents at June 30 4,420 — 3 40,696 (547 ) 44,571 Less cash and equivalents of discontinued operations at June 30 — — — 522 — 522 Cash and equivalents of continuing operations at June 30 $ 4,420 $ — $ 3 $ 40,174 $ (547 ) $ 44,049 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2016 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows – operating activities Cash from (used for) operating activities - continuing operations $ (21,014 ) $ 182 $ 1,032 $ 10,275 $ 11,539 $ 2,014 Cash from (used for) operating activities - discontinued operations (849 ) — (996 ) (3,826 ) 821 (4,849 ) Cash from (used for) operating activities (21,863 ) 182 37 6,449 12,361 (2,835 ) 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 3,174 (16,265 ) (7,995 ) (142,451 ) 100,775 (62,763 ) Cash from (used for) financing activities – discontinued operations — — — (711 ) — (711 ) Cash from (used for) financing activities 3,174 (16,265 ) (7,995 ) (143,162 ) 100,775 (63,474 ) 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 |
SUPPLEMENTAL INFORMATION (Table
SUPPLEMENTAL INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule of Certain Supplemental Information Related to Cash Flows | Certain supplemental information related to our cash flows is shown below. Six months ended June 30 (In millions) 2017 2016 GE All other operating activities (Gains) losses on purchases and sales of business interests $ (42 ) $ (3,140 ) Contract assets (net)(a) (3,202 ) (2,431 ) Income taxes(b) (709 ) (1,184 ) Interest charges(c) 353 182 Principal pension plans(d) 1,542 1,680 Other (1,122 ) (114 ) $ (3,180 ) $ (5,007 ) Net dispositions (purchases) of GE shares for treasury Open market purchases under share repurchase program $ (3,344 ) $ (14,244 ) Other purchases — (776 ) Dispositions 612 726 $ (2,732 ) $ (14,292 ) (a) Contract assets are presented net of related billings in excess of revenues on our long-term product service agreements. See Note 9. (b) Reflected the effects of current tax expense (benefit) of $583 million and $500 million and net cash paid during the year for income taxes of $(1,292) million and $(1,684) million for the six months ended June 30, 2017 and 2016 , respectively. Cash flows effects of deferred tax provisions (benefits) are shown separately within cash flows from operating activities. (c) Reflected the effects of interest expense of $1,200 million and $1,007 million and cash paid for interest of $(848) million and $(825) million for the six months ended June 30, 2017 and 2016 , respectively. (d) Reflected the effects of pension costs of $1,869 million and $1,780 million and employer contributions of $(327) million and $(100) million for the six months ended June 30, 2017 and 2016 , respectively. See Note 12. |
Schedule of Fair Value of Derivatives | The table below summarizes this activity by hedging instrument. FAIR VALUE OF DERIVATIVES June 30, 2017 December 31, 2016 (In millions) Assets Liabilities Assets Liabilities Derivatives accounted for as hedges Interest rate contracts $ 2,728 $ 109 $ 3,106 $ 210 Currency exchange contracts 62 160 402 624 Other contracts — — — — 2,790 269 3,508 834 Derivatives not accounted for as hedges Interest rate contracts 58 10 62 20 Currency exchange contracts 1,132 2,199 1,778 4,011 Other contracts 97 34 119 17 1,287 2,242 1,958 4,048 Gross derivatives recognized in statement of financial position Gross derivatives 4,077 2,511 5,467 4,883 Gross accrued interest 470 (13 ) 768 (24 ) 4,547 2,497 6,234 4,859 Amounts offset in statement of financial position Netting adjustments(a) (1,606 ) (1,605 ) (3,097 ) (3,094 ) Cash collateral(b) (2,059 ) (462 ) (2,025 ) (1,355 ) (3,665 ) (2,066 ) (5,121 ) (4,449 ) Net derivatives recognized in statement of financial position Net derivatives 882 431 1,113 410 Amounts not offset in statement of financial position Securities held as collateral(c) (432 ) — (442 ) — Net amount $ 450 $ 431 $ 671 $ 410 Derivatives are classified in the captions "All other assets" and "All other liabilities" and the related accrued interest is classified in "Other GE Capital receivables" and "All other liabilities" in our Statement of Financial Position. (a) The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts include fair value adjustments related to our own and counterparty non-performance risk. At June 30, 2017 and December 31, 2016 , the cumulative adjustment for non-performance risk was $(1) million and $(3) million , respectively. (b) Excluded excess cash collateral received and posted of $284 million and $142 million at June 30, 2017 , respectively, and $6 million and $177 million at December 31, 2016 , respectively. (c) Excluded excess securities collateral received of $68 million and zero at June 30, 2017 and December 31, 2016 , respectively. |
Schedule of Cash Flow Hedge Activity | CASH FLOW HEDGE ACTIVITY Gain (loss) recognized in AOCI Gain (loss) reclassified for the three months ended June 30 for the three months ended June 30 (In millions) 2017 2016 2017 2016 Interest rate contracts $ 3 $ 12 $ (6 ) $ (26 ) Currency exchange contracts 32 1 71 40 Commodity contracts (2 ) (1 ) — (1 ) Total(a) $ 34 $ 12 $ 65 $ 14 CASH FLOW HEDGE ACTIVITY Gain (loss) recognized in AOCI Gain (loss) reclassified for the six months ended June 30 for the six months ended June 30 (In millions) 2017 2016 2017 2016 Interest rate contracts $ 2 $ 31 $ (15 ) $ (55 ) Currency exchange contracts 54 (77 ) 79 (13 ) Commodity contracts — — — (3 ) Total(a) $ 56 $ (45 ) $ 64 $ (71 ) (a) Gain (loss) is recorded in "GE Capital revenues from services", "Interest and other financial charges", and "Other costs and expenses" in our Statement of Earnings when reclassified. |
SEGMENT OPERATIONS (Tables)
SEGMENT OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Summary of Operating Segments | SUMMARY OF OPERATING SEGMENTS Three months ended June 30 Six months ended June 30 (In millions) 2017 2016 V% 2017 2016 V% Revenues Power $ 6,969 $ 6,639 5 % $ 13,058 $ 11,843 10 % Renewable Energy 2,457 2,094 17 % 4,501 3,763 20 % Oil & Gas 3,108 3,219 (3) % 6,110 6,533 (6 )% Aviation 6,532 6,511 — % 13,336 12,774 4 % Healthcare 4,700 4,525 4 % 8,990 8,708 3 % Transportation 1,071 1,240 (14) % 2,110 2,222 (5 )% Energy Connections & Lighting(a) 3,210 4,401 (27) % 5,957 8,657 (31 )% Total industrial segment revenues 28,047 28,630 (2) % 54,063 54,499 (1 )% Capital 2,446 2,771 (12) % 5,127 5,656 (9 )% Total segment revenues 30,493 31,401 (3) % 59,190 60,155 (2 )% Corporate items and eliminations (935 ) 2,093 (1,972 ) 1,184 Consolidated revenues $ 29,558 $ 33,494 (12) % $ 57,219 $ 61,339 (7 )% Segment profit (loss) Power $ 1,031 $ 1,140 (10) % $ 1,827 $ 1,714 7 % Renewable Energy 160 128 25 % 267 211 27 % Oil & Gas 155 320 (52) % 361 628 (43 )% Aviation 1,492 1,348 11 % 3,176 2,872 11 % Healthcare 826 782 6 % 1,469 1,413 4 % Transportation 203 273 (26) % 359 437 (18 )% Energy Connections & Lighting(a) 80 131 (39) % 109 162 (33 )% Total industrial segment profit 3,947 4,122 (4) % 7,568 7,437 2 % Capital (172 ) (600 ) 71 % (219 ) (1,492 ) 85 % Total segment profit (loss) 3,775 3,523 7 % 7,349 5,944 24 % Corporate items and eliminations (1,583 ) 974 (3,592 ) (597 ) GE interest and other financial charges (637 ) (567 ) (1,200 ) (1,007 ) GE provision for income taxes (218 ) (629 ) (361 ) (793 ) Earnings (loss) from continuing operations attributable to GE common shareowners 1,338 3,300 (59) % 2,196 3,548 (38 )% Earnings (loss) from discontinued operations, net of taxes (146 ) (541 ) 73 % (385 ) (849 ) 55 % Less net earnings attributable to noncontrolling interests, discontinued operations 7 3 7 3 Earnings (loss) from discontinued operations, net of tax and noncontrolling interest (152 ) (544 ) 72 % (392 ) (852 ) 54 % Consolidated net earnings (loss) attributable to the GE common shareowners $ 1,185 $ 2,756 (57) % $ 1,804 $ 2,695 (33 )% (a) Beginning in the third quarter of 2017, the Energy Connections business within the Energy Connections & Lighting segment is expected to be combined with the Power segment and presented as one reporting segment called Power. |
BASIS OF PRESENTATION AND SUM52
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 | |
Accounting Policies [Abstract] | |||||
Decrease to provision/increase to benefit for income taxes | $ 41 | $ 19 | $ 56 | $ 97 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Increase to cash from operating activities | $ 2,494 | (2,835) | |||
Decrease to cash from financing activities | $ 10,181 | 63,474 | |||
ASU 2016-09, Excess Tax Benefit Component | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Increase to cash from operating activities | $ 59 | 78 | |||
Decrease to cash from financing activities | $ 78 | $ 137 |
BUSINESSES HELD FOR SALE AND 53
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Assets classified as held for sale | $ 7,850 | $ 14,815 | |||
Liabilities classified as held for sale | [1] | 911 | 4,158 | ||
Held for sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Assets classified as held for sale | 4,096 | 1,745 | |||
Liabilities classified as held for sale | 1,195 | 656 | |||
Discontinued operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Assets classified as held for sale | 7,850 | 14,815 | |||
Liabilities classified as held for sale | $ 911 | 4,158 | |||
Industrial Solutions | Held for sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Assets classified as held for sale | $ 2,120 | ||||
Liabilities classified as held for sale | 546 | ||||
Power | Held for sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Assets classified as held for sale | 1,696 | ||||
Liabilities classified as held for sale | $ 648 | ||||
Proceeds from sale of business | $ 3,415 | ||||
Scenario, Forecast | Discontinued operations | Lower limit | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Period of Transitional Service Agreements (TSA) | 12 months | ||||
Scenario, Forecast | Discontinued operations | Maximum | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Period of Transitional Service Agreements (TSA) | 24 months | ||||
[1] | Our consolidated assets at June 30, 2017 included total assets of $5,851 million of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs. These assets included current receivables and net financing receivables of $1,445 million and investment securities of $1,004 million within continuing operations and assets of discontinued operations of $285 million. Our consolidated liabilities at June 30, 2017 included liabilities of certain VIEs for which the VIE creditors do not have recourse to GE. These liabilities included non-recourse borrowings of consolidated securitization entities (CSEs) of $(682) million within continuing operations. See Note 17. |
BUSINESSES HELD FOR SALE AND 54
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS - Schedule of Financial Information for Assets and Liabilities of Businesses Held for Sale (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Assets | |||
Assets | $ 7,850 | $ 14,815 | |
Liabilities | |||
Liabilities | [1] | 911 | 4,158 |
Financial Services (GE Capital) | |||
Assets | |||
Assets | 7,850 | 14,806 | |
Liabilities | |||
Liabilities | 888 | 4,123 | |
GE Capital | Financial Services (GE Capital) | |||
Assets | |||
Current receivables | 280 | 117 | |
Held for sale | |||
Assets | |||
Current receivables | 698 | 366 | |
Inventories | 579 | 211 | |
Property, plant, and equipment – net | 1,034 | 632 | |
Goodwill | 1,258 | 212 | |
Other intangible assets – net | 237 | 123 | |
Contract assets | 195 | 125 | |
Other | 96 | 76 | |
Assets | 4,096 | 1,745 | |
Liabilities | |||
Accounts payable | 394 | 190 | |
Progress collections and price adjustments accrued | 155 | 141 | |
Other current liabilities | 264 | 133 | |
Non-current compensation and benefits | 219 | 82 | |
Other | 162 | 110 | |
Liabilities | $ 1,195 | $ 656 | |
[1] | Our consolidated assets at June 30, 2017 included total assets of $5,851 million of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs. These assets included current receivables and net financing receivables of $1,445 million and investment securities of $1,004 million within continuing operations and assets of discontinued operations of $285 million. Our consolidated liabilities at June 30, 2017 included liabilities of certain VIEs for which the VIE creditors do not have recourse to GE. These liabilities included non-recourse borrowings of consolidated securitization entities (CSEs) of $(682) million within continuing operations. See Note 17. |
BUSINESSES HELD FOR SALE AND 55
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS - Schedule of Financial Information for Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||
Disposal | ||||||
Earnings (loss) from discontinued operations, net of taxes | $ (146) | $ (541) | $ (385) | $ (849) | ||
Assets | ||||||
Cash and equivalents | 522 | 4,190 | 522 | 4,190 | ||
Assets | 7,850 | 7,850 | $ 14,815 | |||
Liabilities | ||||||
Liabilities | [1] | 911 | 911 | 4,158 | ||
Discontinued operations | ||||||
Operations | ||||||
Total revenues and other income (loss) | 9 | 568 | 88 | 1,861 | ||
Earnings (loss) from discontinued operations before income taxes | (216) | (240) | (412) | (160) | ||
Benefit (provision) for income taxes | 66 | 170 | 128 | 182 | ||
Earnings (loss) from discontinued operations, net of taxes | (150) | (70) | (284) | 22 | ||
Disposal | ||||||
Gain (loss) on disposal before income taxes | 8 | (295) | (19) | (540) | ||
Benefit (provision) for income taxes | (3) | (177) | (81) | (331) | ||
Gain (loss) on disposal, net of taxes | 4 | (472) | (100) | (871) | ||
Earnings (loss) from discontinued operations, net of taxes | (146) | (541) | (385) | (849) | ||
Earnings (loss) from discontinued operations attributable to the Company, before income taxes | (215) | (537) | (438) | (703) | ||
Assets | ||||||
Cash and equivalents | 522 | 522 | 1,429 | |||
Investment securities | 1,729 | 1,729 | 2,626 | |||
Deferred income taxes | 950 | 950 | 487 | |||
Financing receivables held for sale | 3,711 | 3,711 | 8,547 | |||
Other assets | 938 | 938 | 1,727 | |||
Assets | 7,850 | 7,850 | 14,815 | |||
Liabilities | ||||||
Accounts payable | 87 | 87 | 164 | |||
Borrowings | 0 | 0 | 2,076 | |||
Other liabilities | 825 | 825 | 1,918 | |||
Liabilities | 911 | 911 | 4,158 | |||
Financial Services (GE Capital) | ||||||
Disposal | ||||||
Earnings (loss) from discontinued operations, net of taxes | (146) | (541) | (388) | (849) | ||
Assets | ||||||
Cash and equivalents | 522 | 4,190 | 522 | 4,190 | ||
Assets | 7,850 | 7,850 | 14,806 | |||
Liabilities | ||||||
Liabilities | 888 | 888 | $ 4,123 | |||
Financial Services (GE Capital) | Discontinued operations | ||||||
Disposal | ||||||
Current tax benefit (provision) | 253 | (47) | (323) | (881) | ||
Deferred tax benefit (provision) | (190) | 40 | 370 | 732 | ||
Financial Services (GE Capital) | Discontinued operations | U.S. Federal | ||||||
Disposal | ||||||
Current tax benefit (provision) | $ 68 | $ 29 | $ (519) | $ (471) | ||
[1] | Our consolidated assets at June 30, 2017 included total assets of $5,851 million of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs. These assets included current receivables and net financing receivables of $1,445 million and investment securities of $1,004 million within continuing operations and assets of discontinued operations of $285 million. Our consolidated liabilities at June 30, 2017 included liabilities of certain VIEs for which the VIE creditors do not have recourse to GE. These liabilities included non-recourse borrowings of consolidated securitization entities (CSEs) of $(682) million within continuing operations. See Note 17. |
INVESTMENT SECURITIES - Schedul
INVESTMENT SECURITIES - Schedule of Investment Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized cost | $ 35,743 | $ 35,743 | $ 40,665 | |||
Gross unrealized gains | 4,384 | 4,384 | 3,917 | |||
Gross unrealized losses | (159) | (159) | (269) | |||
Estimated fair value | 39,968 | 39,968 | 44,313 | |||
Investment securities | 39,968 | 39,968 | 44,313 | |||
Trading securities | 75 | 75 | 17 | |||
Net unrealized gains (losses) recorded to earnings related to trading securities | 29 | $ 0 | 29 | $ (2) | ||
U.S. corporate | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized cost | 20,129 | 20,129 | 20,049 | |||
Gross unrealized gains | 3,550 | 3,550 | 3,081 | |||
Gross unrealized losses | (50) | (50) | (85) | |||
Estimated fair value | 23,629 | 23,629 | 23,046 | |||
Non-U.S. corporate | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized cost | 7,106 | 7,106 | 11,917 | |||
Gross unrealized gains | 95 | 95 | 98 | |||
Gross unrealized losses | (19) | (19) | (27) | |||
Estimated fair value | 7,182 | 7,182 | 11,987 | |||
State and municipal | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized cost | 3,934 | 3,934 | 3,916 | |||
Gross unrealized gains | 504 | 504 | 412 | |||
Gross unrealized losses | (67) | (67) | (92) | |||
Estimated fair value | 4,371 | 4,371 | 4,236 | |||
Mortgage and asset-backed | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized cost | 2,738 | 2,738 | 2,787 | |||
Gross unrealized gains | 103 | 103 | 111 | |||
Gross unrealized losses | (20) | (20) | (37) | |||
Estimated fair value | 2,821 | 2,821 | 2,861 | |||
Government and agencies | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized cost | 1,664 | 1,664 | 1,842 | |||
Gross unrealized gains | 99 | 99 | 160 | |||
Gross unrealized losses | (2) | (2) | (26) | |||
Estimated fair value | 1,761 | 1,761 | 1,976 | |||
Equity | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized cost | 171 | 171 | 154 | |||
Gross unrealized gains | 34 | 34 | 55 | |||
Gross unrealized losses | (2) | (2) | (1) | |||
Estimated fair value | 204 | 204 | 208 | |||
GE | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Investment securities | [1] | 162 | 162 | 137 | ||
Equity securities | $ 107 | $ 107 | $ 86 | |||
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
INVESTMENT SECURITIES - Sched57
INVESTMENT SECURITIES - Schedule of Estimated Fair Value and Gross Unrealized Losses of Available-For-Sale Investment Securities (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Estimated fair value | ||
Less than 12 months | $ 7,571 | $ 9,098 |
12 months or more | 443 | 663 |
Gross unrealized losses | ||
Less than 12 months | (90) | (157) |
12 months or more | (69) | (111) |
U.S. corporate | ||
Estimated fair value | ||
Less than 12 months | 957 | 1,692 |
12 months or more | 233 | 359 |
Gross unrealized losses | ||
Less than 12 months | (39) | (55) |
12 months or more | (11) | (30) |
Non-U.S. corporate | ||
Estimated fair value | ||
Less than 12 months | 5,102 | 5,352 |
12 months or more | 12 | 14 |
Gross unrealized losses | ||
Less than 12 months | (15) | (26) |
12 months or more | (4) | (1) |
State and municipal | ||
Estimated fair value | ||
Less than 12 months | 210 | 674 |
12 months or more | 156 | 158 |
Gross unrealized losses | ||
Less than 12 months | (15) | (27) |
12 months or more | (52) | (64) |
Mortgage and asset-backed | ||
Estimated fair value | ||
Less than 12 months | 856 | 822 |
12 months or more | 42 | 132 |
Gross unrealized losses | ||
Less than 12 months | (18) | (21) |
12 months or more | (2) | (16) |
Government and agencies | ||
Estimated fair value | ||
Less than 12 months | 437 | 549 |
12 months or more | 0 | 0 |
Gross unrealized losses | ||
Less than 12 months | (2) | (26) |
12 months or more | 0 | 0 |
Equity | ||
Estimated fair value | ||
Less than 12 months | 9 | 9 |
12 months or more | 0 | 0 |
Gross unrealized losses | ||
Less than 12 months | (2) | (1) |
12 months or more | $ 0 | $ 0 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Other-than-temporary impairments on investment securities recognized in earnings | $ 0 | $ 18 | |||
Gross realized gains on available-for-sale investment securities | $ 37 | $ 36 | 143 | 42 | |
Gross realized losses | (2) | (11) | (4) | (40) | |
Proceeds from investment securities sales and early redemptions by issuers | 701 | $ 624 | 1,774 | $ 868 | |
Level 3 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investments classified within level 3 | $ 4,206 | $ 4,206 | $ 4,406 |
INVESTMENT SECURITIES - Sched59
INVESTMENT SECURITIES - Schedule of Contractual Maturities of Investment in Available-For-Sale Debt Securities (Excluding Mortgage and Asset-Backed Securities) (Details) $ in Millions | Jun. 30, 2017USD ($) |
Amortized cost | |
Within one year | $ 5,902 |
After one year through five years | 4,255 |
After five years through ten years | 5,209 |
After ten years | 17,468 |
Estimated fair value | |
Within one year | 5,900 |
After one year through five years | 4,449 |
After five years through ten years | 5,704 |
After ten years | $ 20,890 |
CURRENT RECEIVABLES - Schedule
CURRENT RECEIVABLES - Schedule of Current Receivables (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Current receivables | $ 22,407 | $ 24,935 | |
Allowance for losses | (960) | (858) | |
Total | 21,447 | 24,076 | |
Outstanding balance of current receivables | 2,532 | 3,821 | |
Receivables Facility | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Deferred purchase price receivable | 374 | 483 | |
Outstanding balance of current receivables | 2,933 | ||
Maximum exposure to loss | 143 | 215 | |
GE | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Current receivables | 12,647 | 13,562 | |
Allowance for losses | (949) | (847) | |
Total | [1] | 11,697 | 12,715 |
GE Industrial customer receivables sold to a GE Capital affiliate | 10,599 | 12,304 | |
Current receivables balances, before allowance for losses | 7,955 | 8,927 | |
Financial Services (GE Capital) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Outstanding balance of current receivables | $ 1,187 | $ 2,504 | |
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
CURRENT RECEIVABLES - Narrative
CURRENT RECEIVABLES - Narrative (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Cash collections on previously sold current receivables | $ 9,309,000,000 | |
Transferred receivables outstanding serviced by GE Capital | 2,532,000,000 | $ 3,821,000,000 |
GE Capital | GE customer receivables sold to GE Capital | ||
Related Party Transaction [Line Items] | ||
Current receivables sold to GE Capital | 9,667,000,000 | |
Loss resulting from time value discount on sale of receivables | 64,000,000 | |
Receivables Facility | ||
Related Party Transaction [Line Items] | ||
Revolving Facility, maximum borrowing capacity | 3,000,000,000 | |
Cash collections on previously sold current receivables | 8,036,000,000 | |
Amount paid by purchasing entities to reduce DPP obligation to the Company | 297,000,000 | |
Transferred receivables outstanding serviced by GE Capital | $ 2,933,000,000 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials and work in process | $ 12,830 | $ 12,636 |
Finished goods | 9,110 | 8,798 |
Unbilled shipments | 427 | 536 |
Total inventories before revaluation to LIFO | 22,367 | 21,971 |
Revaluation to LIFO | 476 | 383 |
Total inventories | $ 22,843 | $ 22,354 |
GE CAPITAL FINANCING RECEIVAB63
GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES - Schedule of Financing Receivables, Net (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables – net | $ 12,149 | $ 12,242 |
Finance Leases Portfolio Segment | GE Capital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 24,764 | 26,099 |
Allowance for losses | (68) | (58) |
Financing receivables – net | 24,696 | 26,041 |
Finance Leases Portfolio Segment | GE Capital | Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 19,790 | 21,101 |
Finance Leases Portfolio Segment | GE Capital | Financing leases | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | $ 4,973 | $ 4,998 |
GE CAPITAL FINANCING RECEIVAB64
GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES - Narrative (Details) - Finance Leases Portfolio Segment - GE Capital - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables on nonaccrual | $ 425 | $ 322 |
Percent of financing receivables on nonaccrual | 1.70% | 1.20% |
Nonaccrual financing receivables currently paying in accordance with contractual terms | $ 290 | |
Recorded investment in impaired loans | 387 | $ 262 |
Troubled debt restructurings included in impaired loans | 150 | |
Over 30 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables past due | $ 752 | $ 811 |
Percent of financing receivables over 30 days past due | 3.00% | 3.10% |
Over 90 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables past due | $ 351 | $ 407 |
Percent of financing receivables over 90 days past due | 1.40% | 1.60% |
PROPERTY, PLANT AND EQUIPMENT65
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||||
Original cost | $ 86,320 | $ 86,320 | $ 85,875 | ||
Less accumulated depreciation and amortization | (36,153) | (36,153) | (35,356) | ||
Property, plant and equipment – net | 50,167 | 50,167 | $ 50,518 | ||
Consolidated depreciation and amortization | $ 1,125 | $ 1,294 | $ 2,318 | $ 2,505 |
ACQUISITIONS, GOODWILL AND OT66
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - ACQUISITIONS (Narrative) (Details) - USD ($) $ in Millions | May 23, 2017 | Apr. 20, 2017 | Aug. 16, 2016 | May 10, 2016 | Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||||
Payment for acquisition | $ 2,643 | $ 206 | ||||||
Goodwill | $ 72,335 | $ 70,438 | ||||||
LM Wind Power | ||||||||
Business Acquisition [Line Items] | ||||||||
Payment for acquisition | $ 1,700 | |||||||
Goodwill | 1,200 | |||||||
Amortizable intangible assets | $ 200 | |||||||
ServiceMax | ||||||||
Business Acquisition [Line Items] | ||||||||
Payment for acquisition | $ 866 | |||||||
Goodwill | 670 | |||||||
Amortizable intangible assets | $ 280 | |||||||
Additional ownership interest acquired (as a percent) | 96.00% | |||||||
Cash acquired | $ 91 | |||||||
Equity interest prior to acquisition (as a percent) | 4.00% | |||||||
Doosan | ||||||||
Business Acquisition [Line Items] | ||||||||
Payment for acquisition | $ 220 | $ 250 | ||||||
Goodwill | $ 170 | |||||||
Amortizable intangible assets | $ 35 | |||||||
Additional ownership interest acquired (as a percent) | 15.00% | |||||||
Equity interest prior to acquisition (as a percent) | 80.00% | |||||||
Consideration for remaining HRSG business | $ 35 | |||||||
Remaining business subject to local regulatory requirements (as a percent) | 5.00% |
ACQUISITIONS, GOODWILL AND OT67
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - BAKER HUGHES (Narrative) (Details) - BHGE LLC - USD ($) $ / shares in Units, $ in Millions | Jul. 03, 2017 | Jun. 30, 2017 | Jun. 30, 2017 |
Business Acquisition [Line Items] | |||
Acquisition costs expensed as incurred | $ 59 | $ 110 | |
Subsequent Event | GE | |||
Business Acquisition [Line Items] | |||
Contribution to fund cash dividend to existing Baker Hughes shareholders | $ 7,400 | ||
Interest held in partnership (as a percent) | 62.50% | ||
Total consideration | $ 24,778 | ||
Subsequent Event | GE | Class B Common Stock | |||
Business Acquisition [Line Items] | |||
Interest held in partnership (as a percent) | 62.50% | ||
Subsequent Event | Baker Hughes | |||
Business Acquisition [Line Items] | |||
Interest held in partnership (as a percent) | 37.50% | ||
Subsequent Event | New Baker Hughes | Baker Hughes | |||
Business Acquisition [Line Items] | |||
Special one-time cash dividend (in dollars per share) | $ 17.50 | ||
Subsequent Event | New Baker Hughes | Baker Hughes | Class A Common Stock | |||
Business Acquisition [Line Items] | |||
Shares received at closing (in shares) | 1 |
ACQUISITIONS, GOODWILL AND OT68
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Changes in Goodwill Balances (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Goodwill | |
Beginning balance | $ 70,438 |
Acquisitions | 1,965 |
Dispositions, currency exchange and other | (69) |
Ending balance | 72,335 |
Power | |
Goodwill | |
Beginning balance | 19,816 |
Acquisitions | 50 |
Dispositions, currency exchange and other | 237 |
Ending balance | 20,103 |
Renewable Energy | |
Goodwill | |
Beginning balance | 2,507 |
Acquisitions | 1,165 |
Dispositions, currency exchange and other | 126 |
Ending balance | 3,799 |
Oil & Gas | |
Goodwill | |
Beginning balance | 10,363 |
Acquisitions | 0 |
Dispositions, currency exchange and other | 93 |
Ending balance | 10,457 |
Aviation | |
Goodwill | |
Beginning balance | 9,455 |
Acquisitions | 16 |
Dispositions, currency exchange and other | 269 |
Ending balance | 9,739 |
Healthcare | |
Goodwill | |
Beginning balance | 17,424 |
Acquisitions | 47 |
Dispositions, currency exchange and other | 38 |
Ending balance | 17,509 |
Transportation | |
Goodwill | |
Beginning balance | 899 |
Acquisitions | 0 |
Dispositions, currency exchange and other | 7 |
Ending balance | 906 |
Energy Connections & Lighting | |
Goodwill | |
Beginning balance | 6,868 |
Acquisitions | 0 |
Dispositions, currency exchange and other | (859) |
Ending balance | 6,009 |
Capital | |
Goodwill | |
Beginning balance | 2,368 |
Acquisitions | 0 |
Dispositions, currency exchange and other | 1 |
Ending balance | 2,369 |
Corporate | |
Goodwill | |
Beginning balance | 739 |
Acquisitions | 688 |
Dispositions, currency exchange and other | 19 |
Ending balance | $ 1,446 |
ACQUISITIONS, GOODWILL AND OT69
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - GOODWILL (Narrative) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Business Combinations [Abstract] | |
Increase in goodwill balances | $ 1,897 |
ACQUISITIONS, GOODWILL AND OT70
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Other Intangible Assets - Net (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Business Combinations [Abstract] | ||
Intangible assets subject to amortization | $ 16,839 | $ 16,336 |
Indefinite-lived intangible assets | 90 | 100 |
Total | $ 16,929 | $ 16,436 |
ACQUISITIONS, GOODWILL AND OT71
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 29,124 | $ 27,781 |
Accumulated amortization | (12,284) | (11,444) |
Net | 16,839 | 16,336 |
Run-off insurance operation | ||
Finite-Lived Intangible Assets [Line Items] | ||
Adjustments to present value of future profits | 227 | 241 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 9,446 | 9,172 |
Accumulated amortization | (2,742) | (2,408) |
Net | 6,704 | 6,764 |
Patents and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 9,461 | 8,693 |
Accumulated amortization | (3,502) | (3,325) |
Net | 5,959 | 5,368 |
Capitalized software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 7,939 | 7,652 |
Accumulated amortization | (4,806) | (4,538) |
Net | 3,135 | 3,114 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,209 | 1,165 |
Accumulated amortization | (365) | (307) |
Net | 843 | 858 |
Lease valuations | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 129 | 143 |
Accumulated amortization | (69) | (59) |
Net | 59 | 84 |
Present value of future profits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 701 | 684 |
Accumulated amortization | (701) | (684) |
Net | 0 | 0 |
All other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 239 | 273 |
Accumulated amortization | (99) | (124) |
Net | $ 140 | $ 149 |
ACQUISITIONS, GOODWILL AND OT72
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - OTHER INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | ||||
Increase in intangible assets subject to amortization | $ 503 | |||
GE | ||||
Business Acquisition [Line Items] | ||||
Amortization expense related to intangible assets | $ 407 | $ 450 | 811 | $ 896 |
GE Capital | ||||
Business Acquisition [Line Items] | ||||
Amortization expense related to intangible assets | $ 14 | $ 37 | $ 34 | $ 70 |
CONTRACT ASSETS (Details)
CONTRACT ASSETS (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Deferred inventory costs | $ 4,040 | $ 3,349 |
Non-recurring engineering costs | 2,295 | 2,185 |
Other | 1,051 | 1,018 |
Contract assets | 28,924 | 25,162 |
Related billings in excess of revenues | 2,679 | 3,750 |
GE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total revenues in excess of billings | 21,538 | 18,611 |
GE | Long-term product service agreements | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total revenues in excess of billings | 14,764 | 12,752 |
GE | Long-term equipment contract revenue | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total revenues in excess of billings | $ 6,774 | $ 5,859 |
BORROWINGS - Schedule of Short-
BORROWINGS - Schedule of Short-term and Long-term Borrowings, Short-term (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2016 | Dec. 02, 2015 | ||
Short-term borrowings | ||||
Total short-term borrowings | $ 30,044,000,000 | $ 30,714,000,000 | ||
Eliminations | (13,660,000,000) | (13,212,000,000) | ||
Long-term borrowings | ||||
Total long-term borrowings | 103,676,000,000 | 105,080,000,000 | ||
Eliminations | (36,786,000,000) | (47,173,000,000) | ||
Total borrowings | 134,402,000,000 | 136,210,000,000 | ||
Amounts included in GE Capital | 2,491,000,000 | |||
Total short-term assumed debt excluding intercompany loans | 11,923,000,000 | 13,024,000,000 | ||
Total long-term assumed debt excluding intercompany loans | $ 40,368,000,000 | 47,084,000,000 | ||
Weighted average interest rate | 3.60% | |||
Weighted average term of intercompany loans | 15 years | |||
Current portion of long-term borrowings | $ 682,000,000 | 417,000,000 | ||
GE | ||||
Short-term borrowings | ||||
Total short-term borrowings | 20,331,000,000 | 20,482,000,000 | ||
Long-term borrowings | ||||
Total long-term borrowings | 61,611,000,000 | 58,810,000,000 | ||
GE | GE borrowings | ||||
Long-term borrowings | ||||
GE borrowings excluding assumed debt of GE Capital | 33,725,000,000 | 20,512,000,000 | ||
GE | Commercial paper | ||||
Short-term borrowings | ||||
Total short-term borrowings | 2,000,000,000 | 1,500,000,000 | ||
GE | Current portion of long-term borrowings | ||||
Short-term borrowings | ||||
Total short-term borrowings | 16,120,000,000 | 17,109,000,000 | ||
GE | Other | ||||
Short-term borrowings | ||||
Total short-term borrowings | 2,211,000,000 | 1,874,000,000 | ||
GE Capital | ||||
Short-term borrowings | ||||
Total short-term borrowings | 23,373,000,000 | 23,443,000,000 | ||
Long-term borrowings | ||||
Total long-term borrowings | 78,852,000,000 | 93,443,000,000 | ||
GE Capital | Intercompany Payable To GE | ||||
Long-term borrowings | ||||
Short-term intercompany loans from GE Capital to GE | 0 | 1,329,000,000 | ||
Long-term intercompany loans from GE Capital to GE | 4,075,000,000 | 0 | ||
GE Capital | Funding secured by aircraft and other collateral | ||||
Long-term borrowings | ||||
Amounts included in GE Capital | 1,781,000,000 | 2,665,000,000 | ||
GE Capital | Non-recourse to GE Capital | ||||
Long-term borrowings | ||||
Amounts included in GE Capital | 591,000,000 | 1,419,000,000 | ||
GE Capital | Commercial paper | ||||
Short-term borrowings | ||||
Total short-term borrowings | 5,012,000,000 | 5,002,000,000 | ||
GE Capital | Current portion of long-term borrowings | ||||
Short-term borrowings | ||||
Total short-term borrowings | 5,869,000,000 | 6,517,000,000 | ||
GE Capital | Other | ||||
Short-term borrowings | ||||
Total short-term borrowings | 569,000,000 | 229,000,000 | ||
GE Capital | Intercompany Payable To GE | ||||
Short-term borrowings | ||||
Total short-term borrowings | 11,923,000,000 | 11,696,000,000 | ||
Consolidated securitization entities | ||||
Short-term borrowings | ||||
Total short-term borrowings | [1] | 23,373,000,000 | 23,443,000,000 | |
Long-term borrowings | ||||
Current portion of long-term borrowings | 682,000,000 | 417,000,000 | ||
Consolidated securitization entities | Intercompany Payable To GE | ||||
Long-term borrowings | ||||
GE borrowings excluding assumed debt of GE Capital | 48,216,000,000 | 58,780,000,000 | ||
Intercompany Payable To GE | GE Capital | ||||
Long-term borrowings | ||||
Total long-term borrowings | 36,293,000,000 | 47,084,000,000 | ||
Senior notes | GE | ||||
Long-term borrowings | ||||
Total long-term borrowings | 56,699,000,000 | 54,396,000,000 | ||
Senior notes | GE Capital | ||||
Long-term borrowings | ||||
Total long-term borrowings | 40,927,000,000 | 44,131,000,000 | ||
Subordinated notes | GE | ||||
Long-term borrowings | ||||
Total long-term borrowings | 2,835,000,000 | 2,768,000,000 | ||
Subordinated notes | GE Capital | ||||
Long-term borrowings | ||||
Total long-term borrowings | 218,000,000 | 236,000,000 | ||
Subordinated debentures | GE | ||||
Long-term borrowings | ||||
Total long-term borrowings | 740,000,000 | 719,000,000 | ||
Other | GE | ||||
Long-term borrowings | ||||
Total long-term borrowings | 1,337,000,000 | 928,000,000 | ||
Other | GE Capital | ||||
Long-term borrowings | ||||
Total long-term borrowings | 1,414,000,000 | 1,992,000,000 | ||
Non-recourse borrowings of consolidated securitization entities | Consolidated securitization entities | ||||
Long-term borrowings | ||||
Total long-term borrowings | 682,000,000 | 417,000,000 | ||
Non-recourse borrowings of consolidated securitization entities | Current portion of long-term borrowings | ||||
Long-term borrowings | ||||
Current portion of long-term borrowings | 528,000,000 | $ 320,000,000 | ||
Non-recourse borrowings of consolidated securitization entities | Consolidated securitization entities | ||||
Long-term borrowings | ||||
GE borrowings excluding assumed debt of GE Capital | $ 44,077,000,000 | $ 92,537,000,000 | ||
[1] | In 2015, senior unsecured notes and commercial paper were assumed by GE upon its merger with GE Capital, resulting in an intercompany receivable and payable between GE and GE Capital. See Note 10. |
BORROWINGS - Schedule of Shor75
BORROWINGS - Schedule of Short-term and Long-term Borrowings, Long-term (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2016 | Dec. 02, 2015 | ||
Short-term borrowings | ||||
Total short-term borrowings | $ 30,044,000,000 | $ 30,714,000,000 | ||
Eliminations | (13,660,000,000) | (13,212,000,000) | ||
Long-term borrowings | ||||
Total long-term borrowings | 103,676,000,000 | 105,080,000,000 | ||
Eliminations | (36,786,000,000) | (47,173,000,000) | ||
Total borrowings | 134,402,000,000 | 136,210,000,000 | ||
Amounts included in GE Capital | 2,491,000,000 | |||
Total short-term assumed debt excluding intercompany loans | 11,923,000,000 | 13,024,000,000 | ||
Total long-term assumed debt excluding intercompany loans | $ 40,368,000,000 | 47,084,000,000 | ||
Weighted average interest rate | 3.60% | |||
Weighted average term of intercompany loans | 15 years | |||
Current portion of long-term borrowings | $ 682,000,000 | 417,000,000 | ||
GE | ||||
Short-term borrowings | ||||
Total short-term borrowings | 20,331,000,000 | 20,482,000,000 | ||
Long-term borrowings | ||||
Total long-term borrowings | 61,611,000,000 | 58,810,000,000 | ||
GE | GE borrowings | ||||
Long-term borrowings | ||||
GE borrowings excluding assumed debt of GE Capital | 33,725,000,000 | 20,512,000,000 | ||
GE | Senior notes | ||||
Long-term borrowings | ||||
Total long-term borrowings | 56,699,000,000 | 54,396,000,000 | ||
GE | Subordinated notes | ||||
Long-term borrowings | ||||
Total long-term borrowings | 2,835,000,000 | 2,768,000,000 | ||
GE | Subordinated debentures | ||||
Long-term borrowings | ||||
Total long-term borrowings | 740,000,000 | 719,000,000 | ||
GE | Other | ||||
Long-term borrowings | ||||
Total long-term borrowings | 1,337,000,000 | 928,000,000 | ||
GE | Commercial paper | ||||
Short-term borrowings | ||||
Total short-term borrowings | 2,000,000,000 | 1,500,000,000 | ||
GE | Current portion of long-term borrowings | ||||
Short-term borrowings | ||||
Total short-term borrowings | 16,120,000,000 | 17,109,000,000 | ||
GE | Other | ||||
Short-term borrowings | ||||
Total short-term borrowings | 2,211,000,000 | 1,874,000,000 | ||
GE Capital | ||||
Short-term borrowings | ||||
Total short-term borrowings | 23,373,000,000 | 23,443,000,000 | ||
Long-term borrowings | ||||
Total long-term borrowings | 78,852,000,000 | 93,443,000,000 | ||
GE Capital | Intercompany Payable To GE | ||||
Long-term borrowings | ||||
Short-term intercompany loans from GE Capital to GE | 0 | 1,329,000,000 | ||
Long-term intercompany loans from GE Capital to GE | 4,075,000,000 | 0 | ||
GE Capital | Funding secured by aircraft and other collateral | ||||
Long-term borrowings | ||||
Amounts included in GE Capital | 1,781,000,000 | 2,665,000,000 | ||
GE Capital | Non-recourse to GE Capital | ||||
Long-term borrowings | ||||
Amounts included in GE Capital | 591,000,000 | 1,419,000,000 | ||
GE Capital | Intercompany Payable To GE | ||||
Long-term borrowings | ||||
Total long-term borrowings | 36,293,000,000 | 47,084,000,000 | ||
GE Capital | Senior notes | ||||
Long-term borrowings | ||||
Total long-term borrowings | 40,927,000,000 | 44,131,000,000 | ||
GE Capital | Subordinated notes | ||||
Long-term borrowings | ||||
Total long-term borrowings | 218,000,000 | 236,000,000 | ||
GE Capital | Other | ||||
Long-term borrowings | ||||
Total long-term borrowings | 1,414,000,000 | 1,992,000,000 | ||
GE Capital | Commercial paper | ||||
Short-term borrowings | ||||
Total short-term borrowings | 5,012,000,000 | 5,002,000,000 | ||
GE Capital | Current portion of long-term borrowings | ||||
Short-term borrowings | ||||
Total short-term borrowings | 5,869,000,000 | 6,517,000,000 | ||
GE Capital | Intercompany Payable To GE | ||||
Short-term borrowings | ||||
Total short-term borrowings | 11,923,000,000 | 11,696,000,000 | ||
GE Capital | Other | ||||
Short-term borrowings | ||||
Total short-term borrowings | 569,000,000 | 229,000,000 | ||
Consolidated securitization entities | ||||
Short-term borrowings | ||||
Total short-term borrowings | [1] | 23,373,000,000 | 23,443,000,000 | |
Long-term borrowings | ||||
Current portion of long-term borrowings | 682,000,000 | 417,000,000 | ||
Consolidated securitization entities | Intercompany Payable To GE | ||||
Long-term borrowings | ||||
GE borrowings excluding assumed debt of GE Capital | 48,216,000,000 | 58,780,000,000 | ||
Consolidated securitization entities | Non-recourse borrowings of consolidated securitization entities | ||||
Long-term borrowings | ||||
Total long-term borrowings | 682,000,000 | 417,000,000 | ||
Non-recourse borrowings of consolidated securitization entities | Current portion of long-term borrowings | ||||
Long-term borrowings | ||||
Current portion of long-term borrowings | 528,000,000 | $ 320,000,000 | ||
Non-recourse borrowings of consolidated securitization entities | Consolidated securitization entities | ||||
Long-term borrowings | ||||
GE borrowings excluding assumed debt of GE Capital | $ 44,077,000,000 | $ 92,537,000,000 | ||
[1] | In 2015, senior unsecured notes and commercial paper were assumed by GE upon its merger with GE Capital, resulting in an intercompany receivable and payable between GE and GE Capital. See Note 10. |
BORROWINGS - Narrative (Details
BORROWINGS - Narrative (Details) $ in Millions | Jun. 30, 2017USD ($) | Jun. 30, 2017EUR (€) | Dec. 02, 2015USD ($) |
GE Capital | Non-recourse borrowings of consolidated securitization entities | |||
Guarantor Obligations [Line Items] | |||
Debt assumed by GE upon merger | $ | $ 44,077 | $ 92,537 | |
Senior unsecured debt | GE | |||
Guarantor Obligations [Line Items] | |||
Senior unsecured debt issued by GE | € 8,000,000,000 | ||
0.375% Notes due 2022 | Senior unsecured debt | GE | |||
Guarantor Obligations [Line Items] | |||
Senior unsecured debt issued by GE | € 1,750,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.375% | 0.375% | |
0.875% Notes due 2025 | Senior unsecured debt | GE | |||
Guarantor Obligations [Line Items] | |||
Senior unsecured debt issued by GE | € 2,000,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.875% | 0.875% | |
1.50% Notes due 2029 | Senior unsecured debt | GE | |||
Guarantor Obligations [Line Items] | |||
Senior unsecured debt issued by GE | € 2,250,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | 1.50% | |
2.125% Notes due 2037 | Senior unsecured debt | GE | |||
Guarantor Obligations [Line Items] | |||
Senior unsecured debt issued by GE | € 2,000,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.125% | 2.125% |
INVESTMENT CONTRACTS, INSURAN77
INVESTMENT CONTRACTS, INSURANCE LIABILITIES AND INSURANCE ANNUITY BENEFITS (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Insurance [Abstract] | ||
Future policy benefit reserves | $ 19,105 | $ 18,741 |
Investment contracts | 2,671 | 2,813 |
Other | 5,241 | 4,992 |
Insurance and investment contract liabilities | 27,016 | 26,546 |
Eliminations | (545) | (460) |
Total | $ 26,471 | $ 26,086 |
POSTRETIREMENT BENEFIT PLANS (D
POSTRETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Principal pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost for benefits earned | $ 254 | $ 291 | $ 543 | $ 606 |
Prior service cost (credit) amortization | 72 | 76 | 145 | 152 |
Expected return on plan assets | (849) | (836) | (1,698) | (1,670) |
Interest cost on benefit obligations | 712 | 735 | 1,429 | 1,469 |
Net actuarial loss (gain) amortization | 697 | 612 | 1,407 | 1,224 |
Curtailment loss (gain) | 0 | (1) | 43 | (1) |
Pension plans/Retiree benefit plans cost | 886 | 877 | 1,869 | 1,780 |
Other pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Threshold to be included in other pension plans (greater than) | 50 | 50 | ||
Service cost for benefits earned | 123 | 118 | 274 | 231 |
Prior service cost (credit) amortization | (1) | 0 | (2) | (1) |
Expected return on plan assets | (301) | (259) | (595) | (522) |
Interest cost on benefit obligations | 145 | 168 | 287 | 340 |
Net actuarial loss (gain) amortization | 107 | 65 | 210 | 129 |
Pension plans/Retiree benefit plans cost | 73 | 92 | 174 | 177 |
Principal retiree benefit plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost for benefits earned | 26 | 27 | 52 | 52 |
Prior service cost (credit) amortization | (43) | (41) | (86) | (82) |
Expected return on plan assets | (9) | (11) | (18) | (22) |
Interest cost on benefit obligations | 56 | 63 | 113 | 126 |
Net actuarial loss (gain) amortization | (20) | (14) | (41) | (27) |
Curtailment loss (gain) | 0 | 0 | 3 | 0 |
Pension plans/Retiree benefit plans cost | $ 10 | $ 24 | $ 23 | $ 47 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Effective income tax rate | 1.30% | 7.00% | |
Unrecognized tax benefits | $ 4,760 | $ 4,692 | |
Portion that, if recognized, would reduce tax expense and effective tax rate | 2,894 | 2,886 | |
Accrued interest on unrecognized tax benefits | 682 | 615 | |
Accrued penalties on unrecognized tax benefits | 119 | 118 | |
Lower limit | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Portion that, if recognized, would reduce tax expense and effective tax rate | 0 | 0 | |
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months | 0 | 0 | |
Upper limit | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Portion that, if recognized, would reduce tax expense and effective tax rate | 500 | 500 | |
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months | $ 600 | $ 600 |
SHAREOWNERS' EQUITY - Schedule
SHAREOWNERS' EQUITY - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | $ 77,491,000,000 | |||
Reclassifications from OCI – net of deferred taxes | $ 467,000,000 | $ 461,000,000 | 1,525,000,000 | $ 946,000,000 |
Other comprehensive income (loss) | 1,318,000,000 | 810,000,000 | 3,151,000,000 | 1,636,000,000 |
Less OCI attributable to noncontrolling interests | 1,000,000 | 3,000,000 | 7,000,000 | 6,000,000 |
Accumulated other comprehensive income (loss) at June 30 | 75,783,000,000 | 86,684,000,000 | 75,783,000,000 | 86,684,000,000 |
Investment securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 622,000,000 | 680,000,000 | 674,000,000 | 460,000,000 |
Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes | 291,000,000 | 419,000,000 | 309,000,000 | 578,000,000 |
Reclassifications from OCI – net of deferred taxes | (48,000,000) | (21,000,000) | (118,000,000) | 39,000,000 |
Other comprehensive income (loss) | 243,000,000 | 397,000,000 | 191,000,000 | 617,000,000 |
Less OCI attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Accumulated other comprehensive income (loss) at June 30 | 866,000,000 | 1,077,000,000 | 866,000,000 | 1,077,000,000 |
Deferred taxes, other comprehensive income (loss) (OCI) before reclassifications | 146,000,000 | 222,000,000 | 159,000,000 | 304,000,000 |
Deferred taxes, reclassifications from OCI | (25,000,000) | (9,000,000) | (61,000,000) | 31,000,000 |
Currency translation adjustments (CTA) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (6,004,000,000) | (5,500,000,000) | (6,816,000,000) | (5,499,000,000) |
Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes | 491,000,000 | 26,000,000 | 753,000,000 | 141,000,000 |
Reclassifications from OCI – net of deferred taxes | 34,000,000 | 29,000,000 | 588,000,000 | (85,000,000) |
Other comprehensive income (loss) | 525,000,000 | 55,000,000 | 1,341,000,000 | 57,000,000 |
Less OCI attributable to noncontrolling interests | 2,000,000 | 3,000,000 | 6,000,000 | 6,000,000 |
Accumulated other comprehensive income (loss) at June 30 | (5,481,000,000) | (5,448,000,000) | (5,481,000,000) | (5,448,000,000) |
Deferred taxes, other comprehensive income (loss) (OCI) before reclassifications | (207,000,000) | (50,000,000) | (241,000,000) | 217,000,000 |
Deferred taxes, reclassifications from OCI | (1,000,000) | (39,000,000) | (541,000,000) | 80,000,000 |
Cash flow hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 32,000,000 | (26,000,000) | 12,000,000 | (80,000,000) |
Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes | 44,000,000 | (15,000,000) | 64,000,000 | (40,000,000) |
Reclassifications from OCI – net of deferred taxes | (54,000,000) | (10,000,000) | (55,000,000) | 69,000,000 |
Other comprehensive income (loss) | (10,000,000) | (25,000,000) | 9,000,000 | 30,000,000 |
Less OCI attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Accumulated other comprehensive income (loss) at June 30 | 22,000,000 | (51,000,000) | 22,000,000 | (51,000,000) |
Deferred taxes, other comprehensive income (loss) (OCI) before reclassifications | (8,000,000) | 2,000,000 | (2,000,000) | (5,000,000) |
Deferred taxes, reclassifications from OCI | (10,000,000) | (4,000,000) | (9,000,000) | 1,000,000 |
Benefit plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (11,421,000,000) | (10,859,000,000) | (12,469,000,000) | (11,410,000,000) |
Reclassifications from OCI – net of deferred taxes | 536,000,000 | 463,000,000 | 1,110,000,000 | 922,000,000 |
Other comprehensive income (loss) | 560,000,000 | 382,000,000 | 1,610,000,000 | 933,000,000 |
Less OCI attributable to noncontrolling interests | (1,000,000) | 0 | 1,000,000 | (1,000,000) |
Accumulated other comprehensive income (loss) at June 30 | (10,860,000,000) | (10,476,000,000) | (10,860,000,000) | (10,476,000,000) |
Deferred taxes, reclassifications from OCI | 270,000,000 | 237,000,000 | 558,000,000 | 474,000,000 |
Prior service credit (costs) - net of deferred taxes of $0, $0, $0 and $5 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes | 0 | 0 | 0 | 23,000,000 |
Reclassifications from OCI – net of deferred taxes | 10,000,000 | 17,000,000 | 21,000,000 | 33,000,000 |
Deferred taxes, other comprehensive income (loss) (OCI) before reclassifications | 0 | 0 | 0 | 5,000,000 |
Deferred taxes, reclassifications from OCI | 19,000,000 | 20,000,000 | 38,000,000 | 41,000,000 |
Net actuarial gain (loss) – net of deferred taxes of $32, $(65), $133 and $(43) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes | 24,000,000 | (80,000,000) | 500,000,000 | (12,000,000) |
Reclassifications from OCI – net of deferred taxes | 526,000,000 | 447,000,000 | 1,059,000,000 | 890,000,000 |
Deferred taxes, other comprehensive income (loss) (OCI) before reclassifications | 32,000,000 | (65,000,000) | 133,000,000 | (43,000,000) |
Deferred taxes, reclassifications from OCI | 251,000,000 | 217,000,000 | 504,000,000 | 433,000,000 |
Net curtailment/settlement - net of deferred taxes of $0, $0, $16 and $0 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes | 0 | (1,000,000) | 30,000,000 | (1,000,000) |
Deferred taxes, other comprehensive income (loss) (OCI) before reclassifications | 0 | 0 | 16,000,000 | 0 |
Accumulated other comprehensive income (loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Accumulated other comprehensive income (loss) at June 30 | $ (15,454,000,000) | $ (14,898,000,000) | $ (15,454,000,000) | $ (14,898,000,000) |
SHAREOWNERS' EQUITY - Schedul81
SHAREOWNERS' EQUITY - Schedule of Reclassification Out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total revenues and other income | $ 29,558 | $ 33,494 | $ 57,219 | $ 61,339 |
Benefit (provision) for income taxes | (15) | (461) | (31) | (284) |
Earnings (loss) from continuing operations | 1,499 | 3,363 | 2,315 | 3,779 |
GE Capital revenues from services | 2,022 | 2,316 | 4,286 | 4,838 |
Interest and other financial charges | 1,174 | 1,326 | 2,313 | 3,062 |
Other | 28,044 | 29,670 | 54,872 | 57,276 |
Earnings (loss) from continuing operations before income taxes | 1,515 | 3,824 | 2,346 | 4,063 |
Total reclassification adjustments (net of tax) | (467) | (461) | (1,525) | (946) |
Available-for-sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit plan items, Benefit (provision) for income taxes | (25) | (9) | (61) | 31 |
Total reclassification adjustments (net of tax) | 48 | 21 | 118 | (39) |
Available-for-sale securities | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total revenues and other income | 73 | 30 | 178 | (70) |
Benefit (provision) for income taxes | (25) | (9) | (61) | 31 |
Earnings (loss) from continuing operations | 48 | 21 | 118 | (39) |
Available-for-sale securities | Reclassification out of Accumulated Other Comprehensive Income | Discontinued operations | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total revenues and other income | 0 | 6 | 0 | (72) |
Benefit (provision) for income taxes | 0 | (1) | 0 | 31 |
Currency translation adjustments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit plan items, Benefit (provision) for income taxes | (1) | (39) | (541) | 80 |
Total reclassification adjustments (net of tax) | (34) | (29) | (588) | 85 |
Currency translation adjustments | Discontinued operations | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total revenues and other income | 3 | 77 | 32 | 71 |
Benefit (provision) for income taxes | (1) | (39) | (541) | 80 |
Currency translation adjustments | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit (provision) for income taxes | (1) | (39) | (541) | 80 |
Earnings (loss) from continuing operations | (34) | (29) | (588) | 85 |
GE Capital revenues from services | (33) | 10 | (47) | 5 |
Cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit plan items, Benefit (provision) for income taxes | (10) | (4) | (9) | 1 |
Total reclassification adjustments (net of tax) | 54 | 10 | 55 | (69) |
Cash flow hedges | Foreign exchange contracts | Discontinued operations | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
GE Capital revenues from services | 76 | 53 | 101 | 31 |
Interest and other financial charges | (10) | (17) | (23) | (36) |
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit (provision) for income taxes | (10) | (4) | (9) | 1 |
Earnings (loss) from continuing operations | 54 | 10 | 55 | (69) |
Earnings (loss) from continuing operations before income taxes | 65 | 14 | 64 | (71) |
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Gains (losses) on interest rate derivatives | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest and other financial charges | (15) | (26) | (15) | (55) |
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Foreign exchange contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
GE Capital revenues from services | 78 | 37 | 78 | (5) |
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Other | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other | 1 | 2 | 1 | (11) |
Benefit plan items | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit plan items, reclassifications | (806) | (700) | (1,668) | (1,396) |
Benefit plan items, Benefit (provision) for income taxes | 270 | 237 | 558 | 474 |
Total reclassification adjustments (net of tax) | (536) | (463) | (1,110) | (922) |
Curtailment gain (loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit plan items, reclassifications | 0 | 1 | (46) | 1 |
Amortization of prior service costs | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit plan items, reclassifications | (29) | (37) | (59) | (74) |
Benefit plan items, Benefit (provision) for income taxes | 19 | 20 | 38 | 41 |
Total reclassification adjustments (net of tax) | (10) | (17) | (21) | (33) |
Amortization of actuarial gains (losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit plan items, reclassifications | (777) | (664) | (1,563) | (1,323) |
Benefit plan items, Benefit (provision) for income taxes | 251 | 217 | 504 | 433 |
Total reclassification adjustments (net of tax) | $ (526) | $ (447) | $ (1,059) | $ (890) |
SHAREOWNERS' EQUITY - Schedul82
SHAREOWNERS' EQUITY - Schedule of Changes to Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||
Stockholders' Equity Attributable to Noncontrolling Interest | ||||||
Beginning balance | $ 1,639 | $ 1,667 | $ 1,663 | [1] | $ 1,864 | |
Net earnings (loss) | 14 | 1 | 20 | (68) | ||
Dividends | (22) | (14) | (31) | (21) | ||
Dispositions | 5 | 0 | (8) | (42) | ||
Other (including AOCI) | (3) | 39 | (10) | (40) | ||
Ending balance at June 30 | $ 1,634 | [1] | $ 1,693 | $ 1,634 | [1] | 1,693 |
GEAM | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest | ||||||
Other (including AOCI) | $ (123) | |||||
[1] | Included AOCI attributable to noncontrolling interests of $(271) million and $(278) million at June 30, 2017 and December 31, 2016, respectively. |
SHAREOWNERS' EQUITY - Narrative
SHAREOWNERS' EQUITY - Narrative (Details) $ in Millions | Nov. 02, 2015joint_venture | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Equity [Abstract] | |||||
Number of joint ventures formed as part of the Alstom acquisition | joint_venture | 3 | ||||
Related Party Transaction [Line Items] | |||||
Cash dividends | $ 2,016 | $ 3,500 | $ 4,016 | $ 11,000 | |
Dividends on GE preferred stock | 182 | 152 | 216 | 441 | |
Cash dividends | 147 | $ 120 | 147 | $ 185 | |
GE Capital | GE | |||||
Related Party Transaction [Line Items] | |||||
Dividends from GE Capital to GE | $ 2,105 | $ 4,105 |
SHAREOWNERS' EQUITY - Schedul84
SHAREOWNERS' EQUITY - Schedule of Changes to Redeemable Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stockholders' Equity Attributable to Noncontrolling Interest | ||||
Beginning balance | $ 3,054 | $ 3,036 | $ 3,025 | $ 2,972 |
Net earnings (loss) | (28) | (86) | (109) | (139) |
Dividends | 0 | 0 | (11) | (9) |
Redemption value adjustment | 43 | 79 | 114 | 110 |
Other | 125 | 42 | 173 | 135 |
Ending balance at June 30 | 3,193 | 3,070 | 3,193 | 3,070 |
Alstom Acquisition | ||||
Stockholders' Equity Attributable to Noncontrolling Interest | ||||
Ending balance at June 30 | $ 2,894 | $ 2,950 | $ 2,894 | $ 2,950 |
EARNINGS PER SHARE INFORMATIO85
EARNINGS PER SHARE INFORMATION (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Diluted | ||||
Earnings from continuing operations for per-share calculation | $ 1,514 | $ 3,446 | $ 2,401 | $ 3,981 |
Preferred stock dividends | (182) | (152) | (216) | (441) |
Earnings from continuing operations attributable to common shareowners for per-share calculation | 1,332 | 3,294 | 2,185 | 3,540 |
Loss from discontinued operations for per-share calculation | (157) | (546) | (399) | (861) |
Net earnings attributable to GE common shareowners for per-share calculation | $ 1,179 | $ 2,751 | $ 1,793 | $ 2,687 |
Shares of GE common stock outstanding | 8,671 | 9,079 | 8,695 | 9,179 |
Employee compensation-related shares (including stock options) | 89 | 108 | 94 | 101 |
Total average equivalent shares | 8,760 | 9,187 | 8,789 | 9,281 |
Earnings (loss) from continuing operations (in dollars per share) | $ 0.15 | $ 0.36 | $ 0.25 | $ 0.38 |
Loss from discontinued operations (in dollars per share) | (0.02) | (0.06) | (0.05) | (0.09) |
Net earnings (loss) (in dollars per share) | $ 0.13 | $ 0.30 | $ 0.20 | $ 0.29 |
Basic | ||||
Earnings from continuing operations for per-share calculation | $ 1,514 | $ 3,449 | $ 2,400 | $ 3,983 |
Preferred stock dividends | (182) | (152) | (216) | (441) |
Earnings from continuing operations attributable to common shareowners for per-share calculation | 1,332 | 3,297 | 2,184 | 3,542 |
Loss from discontinued operations for per-share calculation | (157) | (543) | (400) | (858) |
Net earnings attributable to GE common shareowners for per-share calculation | $ 1,179 | $ 2,753 | $ 1,793 | $ 2,690 |
Shares of GE common stock outstanding | 8,671 | 9,079 | 8,695 | 9,179 |
Employee compensation-related shares (including stock options) | 0 | 0 | 0 | 0 |
Total average equivalent shares | 8,671 | 9,079 | 8,695 | 9,179 |
Earnings (loss) from continuing operations (in dollars per share) | $ 0.15 | $ 0.36 | $ 0.25 | $ 0.39 |
Loss from discontinued operations (in dollars per share) | (0.02) | (0.06) | (0.05) | (0.09) |
Net earnings (loss) (in dollars per share) | $ 0.14 | $ 0.30 | $ 0.21 | $ 0.29 |
Outstanding stock awards not included in the computation of diluted earnings per share (in shares) | 33 | 25 | 26 | 28 |
FINANCIAL INSTRUMENTS - Schedul
FINANCIAL INSTRUMENTS - Schedule of Information About Assets and Liabilities Not Carried at Fair Value (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Liabilities | ||
Borrowings (debt assumed) | $ 134,402 | $ 136,210 |
Reduction to fair value of borrowings had interest rate and currency derivatives had been excluded | 2,478 | 2,397 |
GE | Intercompany Payable To GE | ||
Liabilities | ||
Accrued interest on borrowings (debt assumed) | 553 | 803 |
GE Capital | ||
Liabilities | ||
Accrued interest on borrowings (debt assumed) | 107 | 115 |
Accrued interest on borrowings | 808 | 775 |
GE Capital | Intercompany Payable To GE | ||
Liabilities | ||
Borrowings | 48,216 | 58,780 |
Carrying amount (net) | GE | ||
Assets | ||
Investments and notes receivable | 1,305 | 1,526 |
Liabilities | ||
Borrowings | 29,650 | 19,184 |
Borrowings (debt assumed) | 52,291 | 60,109 |
Carrying amount (net) | GE Capital | ||
Assets | ||
Loans | 19,740 | 21,060 |
Other commercial mortgages | 1,471 | 1,410 |
Loans held for sale | 604 | 473 |
Other financial instruments | 116 | 121 |
Liabilities | ||
Borrowings | 54,691 | 58,523 |
Investment contracts | 2,671 | 2,813 |
Estimated fair value | GE | ||
Assets | ||
Investments and notes receivable | 1,355 | 1,595 |
Liabilities | ||
Borrowings | 30,455 | 19,923 |
Borrowings (debt assumed) | 59,603 | 66,998 |
Estimated fair value | GE Capital | ||
Assets | ||
Loans | 19,774 | 20,830 |
Other commercial mortgages | 1,554 | 1,472 |
Loans held for sale | 604 | 473 |
Other financial instruments | 149 | 150 |
Liabilities | ||
Borrowings | 58,752 | 62,024 |
Investment contracts | $ 3,130 | $ 3,277 |
FINANCIAL INSTRUMENTS - Sched87
FINANCIAL INSTRUMENTS - Schedule of Notional Amounts of Loan Commitments (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Ordinary course of business lending commitments | $ 789 | $ 687 |
Unused revolving credit lines | 229 | 238 |
Excluded investment commitments | $ 259 | $ 522 |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) $ in Billions | Jun. 30, 2017USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding notional amount | $ 173 |
FINANCIAL INSTRUMENTS - Sched89
FINANCIAL INSTRUMENTS - Schedule of Financial Statement Effects - Cash Flow Hedges (Details) - Cash Flow Hedges - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Fair value of derivatives increase (decrease) | $ 34 | $ 11 | $ 56 | $ (45) |
Shareowners' equity (increase) decrease | (34) | (12) | (56) | 45 |
Earnings (loss) related to ineffectiveness | 0 | 0 | 0 | 1 |
Earnings (loss) effect | $ 65 | $ 14 | $ 64 | $ (71) |
FINANCIAL INSTRUMENTS - Sched90
FINANCIAL INSTRUMENTS - Schedule of Financial Statement Effects - Fair Value Hedges (Details) - Fair Value Hedges - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Fair value of derivatives increase (decrease) | $ (57) | $ 888 | $ (282) | $ 2,610 |
Adjustment to carrying amount of hedged debt (increase) decrease | 2 | (933) | 164 | (2,688) |
Earnings (loss) related to hedge ineffectiveness | $ (56) | $ (46) | $ (118) | $ (77) |
FINANCIAL INSTRUMENTS - Sched91
FINANCIAL INSTRUMENTS - Schedule of Financial Statement Effects - Net Investment Hedges (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Earnings (loss) related to spot-forward differences and ineffectiveness | $ (253,000,000) | $ (171,000,000) | $ (420,000,000) | $ (360,000,000) |
Net Investment Hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Fair value of derivatives increase (decrease) | (98,000,000) | (282,000,000) | (191,000,000) | 47,000,000 |
Fair value of non-derivative instruments (increase) decrease | (389,000,000) | (322,000,000) | (859,000,000) | (49,000,000) |
Shareowners' equity (increase) decrease | 490,000,000 | 609,000,000 | 1,063,000,000 | 40,000,000 |
Earnings (loss) related to spot-forward differences and ineffectiveness | 3,000,000 | 5,000,000 | 13,000,000 | 37,000,000 |
Earnings (loss) related to reclassification upon sale or liquidation | $ 0 | $ (380,000,000) | $ 59,000,000 | $ (1,072,000,000) |
FINANCIAL INSTRUMENTS - Sched92
FINANCIAL INSTRUMENTS - Schedule of Financial Statement Effects - Economic Hedges (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Change in fair value of economic hedge increase (decrease) | $ 979 | $ 157 | $ 641 | $ (122) |
Change in carrying amount of item being hedged increase (decrease) | (1,180) | (286) | (956) | (198) |
Earnings (loss) effect | $ (200) | $ (130) | $ (315) | $ (321) |
FINANCIAL INSTRUMENTS - Sched93
FINANCIAL INSTRUMENTS - Schedule of Carrying Amounts Related to Derivatives (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative assets | $ 4,077 | $ 5,467 |
Derivative liabilities | (2,511) | (4,883) |
Accrued interest | 484 | 792 |
Cash collateral & credit valuation adjustment | (1,599) | (672) |
Net Derivatives | 451 | 703 |
Securities held as collateral | (432) | (442) |
Net amount | $ 19 | $ 262 |
FINANCIAL INSTRUMENTS - Sched94
FINANCIAL INSTRUMENTS - Schedule of Effects of Derivatives on Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effect on earnings | $ (253) | $ (171) | $ (420) | $ (360) |
Cash flow hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effect on hedging instrument | 34 | 11 | 56 | (45) |
Effect on underlying | (34) | (12) | (56) | 45 |
Effect on earnings | 0 | 0 | 0 | 1 |
Fair value hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effect on hedging instrument | (57) | 888 | (282) | 2,610 |
Effect on underlying | 2 | (933) | 164 | (2,688) |
Effect on earnings | (56) | (46) | (118) | (77) |
Net investment hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effect on hedging instrument | (487) | (604) | (1,050) | (2) |
Effect on underlying | 490 | 609 | 1,063 | 40 |
Effect on earnings | 3 | 5 | 13 | 37 |
Economic hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effect on hedging instrument | 979 | 157 | 641 | (122) |
Effect on underlying | (1,180) | (286) | (956) | (198) |
Effect on earnings | $ (200) | $ (130) | $ (315) | $ (321) |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) $ in Millions | Nov. 02, 2015joint_venture | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Variable Interest Entities [Abstract] | ||||||
Number of joint ventures formed as part of the Alstom acquisition | joint_venture | 3 | |||||
Variable Interest Entity [Line Items] | ||||||
Combined assets | $ 5,851 | $ 5,851 | ||||
Total revenues from consolidated VIEs | 29,558 | $ 33,494 | 57,219 | $ 61,339 | ||
Alstom acquisition | ||||||
Variable Interest Entity [Line Items] | ||||||
Combined assets | 16,193 | 16,193 | $ 14,460 | |||
Combined liabilities | 9,006 | 9,006 | 9,922 | |||
Redeemable non-controlling interest | 2,894 | 2,709 | ||||
Consolidated VIEs | ||||||
Variable Interest Entity [Line Items] | ||||||
Combined assets | 6,509 | 6,509 | 6,105 | |||
Combined liabilities | 5,089 | 5,089 | 4,553 | |||
Total revenues from consolidated VIEs | 256 | 439 | 508 | 794 | ||
Cost of goods and services | 83 | $ 257 | 178 | $ 601 | ||
Third-party investors | ||||||
Variable Interest Entity [Line Items] | ||||||
Commingled cash owed to third-party investors | 1,123 | 1,123 | 1,117 | |||
Commingled cash owed by third-party investors | 10 | 10 | 5 | |||
Unconsolidated VIEs | ||||||
Variable Interest Entity [Line Items] | ||||||
Investments in unconsolidated VIEs | $ 6,210 | $ 6,210 | $ 6,346 |
VARIABLE INTEREST ENTITIES - Sc
VARIABLE INTEREST ENTITIES - Schedule of Assets and Liabilities of Consolidated VIEs (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2017USD ($)funding_vehicle | Dec. 31, 2016USD ($) | |
Variable Interest Entity [Line Items] | ||
Assets | $ 5,851 | |
Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 6,509 | $ 6,105 |
Liabilities | 5,089 | 4,553 |
GE | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 643 | 549 |
Liabilities | $ 532 | 458 |
GE Capital | ||
Variable Interest Entity [Line Items] | ||
Number of funding vehicles established | funding_vehicle | 2 | |
Number of funding vehicles partially funded by third-party debt | funding_vehicle | 1 | |
GE Capital | Customer Notes receivables | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 1,880 | 1,792 |
Liabilities | 1,852 | 1,779 |
GE Capital | Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 3,986 | 3,764 |
Liabilities | 2,705 | 2,316 |
Financing receivables, net | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 881 | 1,035 |
Financing receivables, net | GE | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
Financing receivables, net | GE Capital | Customer Notes receivables | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
Financing receivables, net | GE Capital | Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 881 | 1,035 |
Current receivables | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 616 | 727 |
Current receivables | GE | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 56 | 57 |
Current receivables | GE Capital | Customer Notes receivables | ||
Variable Interest Entity [Line Items] | ||
Assets | 560 | 670 |
Current receivables | GE Capital | Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
Investment securities | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 1,004 | 982 |
Investment securities | GE | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
Investment securities | GE Capital | Customer Notes receivables | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
Investment securities | GE Capital | Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 1,004 | 982 |
Other assets | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 4,008 | 3,361 |
Other assets | GE | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 587 | 492 |
Other assets | GE Capital | Customer Notes receivables | ||
Variable Interest Entity [Line Items] | ||
Assets | 1,320 | 1,122 |
Other assets | GE Capital | Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 2,101 | 1,747 |
Borrowings | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 682 | |
Borrowings | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 1,172 | 819 |
Borrowings | GE | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 38 | 1 |
Borrowings | GE Capital | Customer Notes receivables | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 0 | 0 |
Borrowings | GE Capital | Other | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 1,134 | 818 |
Non-recourse borrowings | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 683 | 417 |
Non-recourse borrowings | GE | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 0 | 0 |
Non-recourse borrowings | GE Capital | Customer Notes receivables | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 667 | 401 |
Non-recourse borrowings | GE Capital | Other | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 16 | 16 |
Other liabilities | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 3,234 | 3,317 |
Other liabilities | GE | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 494 | 457 |
Other liabilities | GE Capital | Customer Notes receivables | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 1,185 | 1,378 |
Other liabilities | GE Capital | Other | ||
Variable Interest Entity [Line Items] | ||
Liabilities | $ 1,555 | $ 1,482 |
COMMITMENTS, GUARANTEES, PROD97
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - COMMITMENTS (Narrative) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
GECAS | New aircraft | |
Long-term Purchase Commitment [Line Items] | |
List prices of multiple-year orders | $ 39,374 |
GECAS | Used aircraft | |
Long-term Purchase Commitment [Line Items] | |
List prices of multiple-year orders | 1,894 |
Aviation | |
Long-term Purchase Commitment [Line Items] | |
Commitment to provide financing assistance | $ 1,911 |
COMMITMENTS, GUARANTEES, PROD98
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - GUARANTEES (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Guarantor Obligations [Line Items] | ||
Liability for indemnification agreements | $ 21,607 | $ 22,912 |
Credit support | ||
Guarantor Obligations [Line Items] | ||
Commitments | 2,282 | |
Liability for credit support and indemnification agreements | 44 | |
Indemnification agreements | ||
Guarantor Obligations [Line Items] | ||
Commitments | 1,051 | |
Liability for credit support and indemnification agreements | 7 | |
Required funding under residual value guarantees | 210 | |
Liability for indemnification agreements | 234 | |
Indemnification agreements - discontinued operations | ||
Guarantor Obligations [Line Items] | ||
Commitments | 2,611 | |
Liability for indemnification agreements | $ 305 |
COMMITMENTS, GUARANTEES, PROD99
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - Schedule of Product Warranties (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Movement in Standard Product Warranty Accrual | ||
Balance at January 1 | $ 1,920 | $ 1,723 |
Current-year provisions | 354 | 339 |
Expenditures | (414) | (343) |
Other changes | 109 | 113 |
Balance as of June 30 | $ 1,969 | $ 1,832 |
COMMITMENTS, GUARANTEES, PRO100
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - OTHER LOSS CONTINGENCIES (Narrative) (Details) € in Millions, $ in Millions | Jan. 23, 2017USD ($) | Dec. 31, 2014USD ($) | Jan. 31, 2007EUR (€) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)securitizationlawsuitsignificant_case | Jun. 30, 2016USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Nov. 02, 2015USD ($) |
Loss Contingencies [Line Items] | ||||||||||||
Claims reflecting purchase price or unpaid principal balances of the loans at the time of purchase | $ 6,454 | $ 6,454 | ||||||||||
Period prior to notifying WMC when claim would be disallowed | 6 years | |||||||||||
Number of significant cases involving anti-competitive activities and improper payments | significant_case | 2 | |||||||||||
Fine for participating in gas insulated switchgear cartel (in euros) | € | € 65 | |||||||||||
Reduced fine (in euros) | € | € 59 | |||||||||||
Criminal penalty paid | $ 772 | |||||||||||
Reserve established for legal and compliance matters | $ 858 | |||||||||||
Disposed of by Sale | WMC | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Active claims for alleged breaches of representations and warranties on mortgage loans | 1,019 | $ 1,019 | $ 1,060 | |||||||||
Additional claims asserted against WMC in litigation without making a prior claim | 5,435 | 5,435 | 5,456 | |||||||||
Reserves related to repurchase claims | 636 | $ 860 | 636 | $ 860 | $ 626 | $ 626 | $ 833 | $ 875 | ||||
Net increase to reserves | 10 | $ 27 | $ 10 | $ 84 | ||||||||
Number of lawsuits arising from alleged breaches of representations and warranties | lawsuit | 10 | |||||||||||
Number of securitizations related to lawsuits | securitization | 11 | |||||||||||
Number number of lawsuits that are the subject of settlement agreements | lawsuit | 5 | |||||||||||
Disposed of by Sale | WMC | Lower limit | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimate of possible loss | 0 | $ 0 | ||||||||||
Disposed of by Sale | WMC | Maximum | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimate of possible loss | $ 500 | $ 500 | ||||||||||
Disposed of by Sale | WMC | ResCap Liquidating Trust | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Sale of loans to RFC | $ 840 |
COMMITMENTS, GUARANTEES, PRO101
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - Rollforward of the Reserve (Details) - Disposed of by Sale - WMC - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Loss Contingency Accrual | ||||
Balance, beginning of period | $ 626 | $ 833 | $ 626 | $ 875 |
Provision | 10 | 27 | 10 | 84 |
Claim resolutions / rescissions | 0 | 0 | 0 | (99) |
Balance, end of period | $ 636 | $ 860 | $ 636 | $ 860 |
INTERCOMPANY TRANSACTIONS (Deta
INTERCOMPANY TRANSACTIONS (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities-continuing operations | $ 3,389 | $ 2,014 |
Total cash from (used for) investing activities-continuing operations | 4,083 | 42,414 |
Total cash from (used for) financing activities-continuing operations | (12,089) | (62,763) |
GE and GE Capital totals | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities-continuing operations | 5,549 | 11,207 |
Total cash from (used for) investing activities-continuing operations | 3,173 | 39,495 |
Total cash from (used for) financing activities-continuing operations | (13,339) | (69,038) |
GE and GE Capital totals | GE Capital | GE current receivables sold to GE Capital | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities-continuing operations | 1,598 | 1,313 |
Total cash from (used for) investing activities-continuing operations | (1,760) | (1,643) |
Total cash from (used for) financing activities-continuing operations | 162 | 330 |
GE and GE Capital totals | GE Capital | GE Capital dividends to GE | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities-continuing operations | (4,016) | (11,000) |
Total cash from (used for) financing activities-continuing operations | 4,016 | 11,000 |
GE and GE Capital totals | GE Capital | GE Capital long-term loans to GE | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) investing activities-continuing operations | 4,075 | 0 |
Total cash from (used for) financing activities-continuing operations | (4,075) | 0 |
GE and GE Capital totals | GE Capital | GE Capital short-term loan to GE | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) investing activities-continuing operations | (1,329) | 5,002 |
Total cash from (used for) financing activities-continuing operations | 1,329 | (5,002) |
Other reclassifications and eliminations | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities-continuing operations | 258 | 494 |
Total cash from (used for) investing activities-continuing operations | (76) | (441) |
Total cash from (used for) financing activities-continuing operations | $ (182) | $ (52) |
GUARANTOR FINANCIAL INFORMAT103
GUARANTOR FINANCIAL INFORMATION - Condensed Consolidating Statement of Earnings (Loss) and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues and other income | ||||
Sales of goods and services | $ 27,239 | $ 28,028 | $ 52,467 | $ 53,342 |
Other income | 298 | 3,150 | 465 | 3,158 |
Equity in earnings (loss) of affiliates | 0 | 0 | 0 | 0 |
GE Capital revenues from services | 2,022 | 2,316 | 4,286 | 4,838 |
Total revenues and other income | 29,558 | 33,494 | 57,219 | 61,339 |
Costs and expenses | ||||
Interest and other financial charges | 1,174 | 1,326 | 2,313 | 3,062 |
Other costs and expenses | 26,870 | 28,344 | 52,560 | 54,214 |
Total costs and expenses | 28,044 | 29,670 | 54,872 | 57,276 |
Earnings (loss) from continuing operations before income taxes | 1,515 | 3,824 | 2,346 | 4,063 |
Benefit (provision) for income taxes | (15) | (461) | (31) | (284) |
Earnings (loss) from continuing operations | 1,499 | 3,363 | 2,315 | 3,779 |
Earnings (loss) from discontinued operations, net of taxes | (146) | (541) | (385) | (849) |
Net earnings (loss) | 1,354 | 2,823 | 1,931 | 2,930 |
Less net earnings (loss) attributable to noncontrolling interests | (14) | (86) | (90) | (207) |
Net earnings (loss) attributable to the Company | 1,367 | 2,908 | 2,020 | 3,137 |
Other comprehensive income (loss) | 1,317 | 807 | 3,144 | 1,631 |
Comprehensive income (loss) attributable to the Company | 2,685 | 3,715 | 5,164 | 4,767 |
Reportable Legal Entities | Parent Company Guarantor | ||||
Revenues and other income | ||||
Sales of goods and services | 8,080 | 10,664 | 16,872 | 20,676 |
Other income | 27,632 | (264) | 27,686 | (38) |
Equity in earnings (loss) of affiliates | (25,246) | 5,228 | (22,802) | 6,135 |
GE Capital revenues from services | 0 | 0 | 0 | 0 |
Total revenues and other income | 10,467 | 15,628 | 21,756 | 26,774 |
Costs and expenses | ||||
Interest and other financial charges | 767 | 851 | 1,677 | 1,662 |
Other costs and expenses | 8,557 | 11,601 | 18,186 | 22,057 |
Total costs and expenses | 9,324 | 12,453 | 19,862 | 23,719 |
Earnings (loss) from continuing operations before income taxes | 1,143 | 3,175 | 1,894 | 3,055 |
Benefit (provision) for income taxes | 370 | 312 | 514 | 931 |
Earnings (loss) from continuing operations | 1,513 | 3,486 | 2,408 | 3,986 |
Earnings (loss) from discontinued operations, net of taxes | (146) | (541) | (388) | (849) |
Net earnings (loss) | 1,367 | 2,946 | 2,020 | 3,137 |
Less net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to the Company | 1,367 | 2,946 | 2,020 | 3,137 |
Other comprehensive income (loss) | 1,317 | 807 | 3,144 | 1,631 |
Comprehensive income (loss) attributable to the Company | 2,685 | 3,753 | 5,164 | 4,767 |
Reportable Legal Entities | Subsidiary Issuer | ||||
Revenues and other income | ||||
Sales of goods and services | 0 | 0 | 0 | 0 |
Other income | 0 | 0 | 0 | 0 |
Equity in earnings (loss) of affiliates | 0 | 0 | 0 | 0 |
GE Capital revenues from services | 173 | 200 | 329 | 596 |
Total revenues and other income | 173 | 200 | 329 | 596 |
Costs and expenses | ||||
Interest and other financial charges | 159 | 175 | 309 | 547 |
Other costs and expenses | 0 | 0 | 0 | 0 |
Total costs and expenses | 159 | 175 | 309 | 548 |
Earnings (loss) from continuing operations before income taxes | 14 | 25 | 20 | 48 |
Benefit (provision) for income taxes | (2) | (3) | (2) | (6) |
Earnings (loss) from continuing operations | 12 | 22 | 17 | 42 |
Earnings (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | 0 |
Net earnings (loss) | 12 | 22 | 17 | 42 |
Less net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to the Company | 12 | 22 | 17 | 42 |
Other comprehensive income (loss) | 0 | 0 | 0 | (12) |
Comprehensive income (loss) attributable to the Company | 12 | 22 | 17 | 30 |
Reportable Legal Entities | Subsidiary Guarantor | ||||
Revenues and other income | ||||
Sales of goods and services | 0 | 0 | 0 | 0 |
Other income | 0 | 0 | 0 | 0 |
Equity in earnings (loss) of affiliates | 450 | (5) | 692 | 665 |
GE Capital revenues from services | 188 | 722 | 374 | 1,019 |
Total revenues and other income | 638 | 717 | 1,066 | 1,683 |
Costs and expenses | ||||
Interest and other financial charges | 489 | 677 | 943 | 1,608 |
Other costs and expenses | 9 | 19 | 22 | 55 |
Total costs and expenses | 497 | 695 | 965 | 1,663 |
Earnings (loss) from continuing operations before income taxes | 141 | 21 | 101 | 20 |
Benefit (provision) for income taxes | 0 | (43) | 115 | (46) |
Earnings (loss) from continuing operations | 141 | (22) | 215 | (26) |
Earnings (loss) from discontinued operations, net of taxes | (5) | (521) | 278 | (996) |
Net earnings (loss) | 136 | (542) | 493 | (1,022) |
Less net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to the Company | 136 | (542) | 493 | (1,022) |
Other comprehensive income (loss) | 32 | 246 | 649 | 63 |
Comprehensive income (loss) attributable to the Company | 168 | (297) | 1,142 | (958) |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||
Revenues and other income | ||||
Sales of goods and services | 37,615 | 38,202 | 73,705 | 71,961 |
Other income | 28,005 | 16,043 | 32,625 | 19,484 |
Equity in earnings (loss) of affiliates | 13,982 | 15,305 | 50,664 | 28,928 |
GE Capital revenues from services | 2,589 | 1,760 | 4,859 | 6,344 |
Total revenues and other income | 82,191 | 71,310 | 161,853 | 126,717 |
Costs and expenses | ||||
Interest and other financial charges | 1,221 | 1,412 | 2,303 | 3,171 |
Other costs and expenses | 37,570 | 38,786 | 73,511 | 74,624 |
Total costs and expenses | 38,791 | 40,198 | 75,814 | 77,795 |
Earnings (loss) from continuing operations before income taxes | 43,400 | 31,111 | 86,039 | 48,922 |
Benefit (provision) for income taxes | (230) | (473) | (699) | (958) |
Earnings (loss) from continuing operations | 43,170 | 30,639 | 85,341 | 47,964 |
Earnings (loss) from discontinued operations, net of taxes | 3 | 600 | 3 | 174 |
Net earnings (loss) | 43,172 | 31,239 | 85,344 | 48,138 |
Less net earnings (loss) attributable to noncontrolling interests | 16 | (66) | (32) | (91) |
Net earnings (loss) attributable to the Company | 43,156 | 31,305 | 85,376 | 48,230 |
Other comprehensive income (loss) | (25,537) | 579 | (26,994) | 847 |
Comprehensive income (loss) attributable to the Company | 17,619 | 31,884 | 58,382 | 49,076 |
Consolidating Adjustments | ||||
Revenues and other income | ||||
Sales of goods and services | (18,456) | (20,838) | (38,110) | (39,295) |
Other income | (55,339) | (12,629) | (59,845) | (16,288) |
Equity in earnings (loss) of affiliates | 10,813 | (20,528) | (28,555) | (35,728) |
GE Capital revenues from services | (928) | (365) | (1,275) | (3,121) |
Total revenues and other income | (63,910) | (54,359) | (127,786) | (94,431) |
Costs and expenses | ||||
Interest and other financial charges | (1,463) | (1,790) | (2,920) | (3,927) |
Other costs and expenses | (19,265) | (22,062) | (39,159) | (42,522) |
Total costs and expenses | (20,728) | (23,852) | (42,078) | (46,449) |
Earnings (loss) from continuing operations before income taxes | (43,183) | (30,508) | (85,707) | (47,983) |
Benefit (provision) for income taxes | (154) | (254) | 41 | (205) |
Earnings (loss) from continuing operations | (43,336) | (30,762) | (85,666) | (48,187) |
Earnings (loss) from discontinued operations, net of taxes | 2 | (80) | (278) | 821 |
Net earnings (loss) | (43,334) | (30,841) | (85,944) | (47,366) |
Less net earnings (loss) attributable to noncontrolling interests | (30) | (20) | (57) | (116) |
Net earnings (loss) attributable to the Company | (43,304) | (30,822) | (85,887) | (47,250) |
Other comprehensive income (loss) | 25,505 | (825) | 26,345 | (898) |
Comprehensive income (loss) attributable to the Company | $ (17,799) | $ (31,646) | $ (59,542) | $ (48,148) |
GUARANTOR FINANCIAL INFORMAT104
GUARANTOR FINANCIAL INFORMATION - Condensed Consolidating Statement of Financial Position (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |||
Assets | |||||||||
Cash and equivalents | $ 44,049 | $ 48,129 | |||||||
Investment securities | 39,968 | 44,313 | |||||||
Receivables - net | 39,753 | 42,263 | |||||||
Inventories | 22,843 | 22,354 | |||||||
Property, plant and equipment - net | 50,167 | 50,518 | |||||||
Investment in subsidiaries | 0 | 0 | |||||||
Goodwill and intangible assets | 89,264 | 86,875 | |||||||
All other assets | 61,579 | 55,917 | |||||||
Assets of discontinued operations | 7,850 | 14,815 | |||||||
Total assets | [1] | 355,473 | 365,183 | ||||||
Liabilities and equity | |||||||||
Short-term borrowings | 30,044 | 30,714 | |||||||
Accounts payable | 13,283 | 14,435 | |||||||
Other current liabilities | 36,007 | 36,431 | |||||||
Long-term and non-recourse borrowings | 104,359 | 105,496 | |||||||
All other liabilities | 91,894 | 93,434 | |||||||
Liabilities of discontinued operations | [1] | 911 | 4,158 | ||||||
Total Liabilities | 276,498 | 284,668 | |||||||
Redeemable noncontrolling interests | 3,193 | $ 3,054 | 3,025 | $ 3,070 | $ 3,036 | $ 2,972 | |||
GE shareowners' equity | 74,148 | [2] | 75,828 | [2] | 84,991 | 98,274 | |||
Noncontrolling interests | 1,634 | [3] | $ 1,639 | 1,663 | [3] | 1,693 | $ 1,667 | $ 1,864 | |
Total equity | 75,783 | 77,491 | $ 86,684 | ||||||
Total liabilities, redeemable noncontrolling interests and equity | 355,473 | 365,183 | |||||||
Subsidiary Guarantor | Subsidiaries of the Subsidiary Guarantor | |||||||||
Liabilities and equity | |||||||||
Cash and cash equivalent balances within subsidiaries | 21,419 | 28,516 | |||||||
Net assets of discontinued operations | 3,711 | 6,012 | |||||||
Reportable Legal Entities | Parent Company Guarantor | |||||||||
Assets | |||||||||
Cash and equivalents | 4,420 | 2,558 | |||||||
Investment securities | 1 | 1 | |||||||
Receivables - net | 54,549 | 63,620 | |||||||
Inventories | 5,265 | 4,654 | |||||||
Property, plant and equipment - net | 5,891 | 5,768 | |||||||
Investment in subsidiaries | 284,471 | 272,685 | |||||||
Goodwill and intangible assets | 7,207 | 8,128 | |||||||
All other assets | 15,238 | 14,692 | |||||||
Assets of discontinued operations | 0 | 0 | |||||||
Total assets | 377,041 | 372,107 | |||||||
Liabilities and equity | |||||||||
Short-term borrowings | 177,190 | 167,089 | |||||||
Accounts payable | (1,380) | 5,412 | |||||||
Other current liabilities | 11,732 | 11,072 | |||||||
Long-term and non-recourse borrowings | 71,784 | 68,983 | |||||||
All other liabilities | 43,567 | 43,722 | |||||||
Liabilities of discontinued operations | 0 | 0 | |||||||
Total Liabilities | 302,893 | 296,279 | |||||||
Redeemable noncontrolling interests | 0 | 0 | |||||||
GE shareowners' equity | 74,148 | 75,828 | |||||||
Noncontrolling interests | 0 | 0 | |||||||
Total equity | 74,148 | 75,828 | |||||||
Total liabilities, redeemable noncontrolling interests and equity | 377,041 | 372,107 | |||||||
Reportable Legal Entities | Subsidiary Issuer | |||||||||
Assets | |||||||||
Cash and equivalents | 0 | 0 | |||||||
Investment securities | 0 | 0 | |||||||
Receivables - net | 17,233 | 17,157 | |||||||
Inventories | 0 | 0 | |||||||
Property, plant and equipment - net | 0 | 0 | |||||||
Investment in subsidiaries | 0 | 0 | |||||||
Goodwill and intangible assets | 0 | 0 | |||||||
All other assets | 44 | 44 | |||||||
Assets of discontinued operations | 0 | 0 | |||||||
Total assets | 17,278 | 17,202 | |||||||
Liabilities and equity | |||||||||
Short-term borrowings | 0 | 1 | |||||||
Accounts payable | 0 | 0 | |||||||
Other current liabilities | 34 | 33 | |||||||
Long-term and non-recourse borrowings | 16,703 | 16,486 | |||||||
All other liabilities | 352 | 511 | |||||||
Liabilities of discontinued operations | 0 | 0 | |||||||
Total Liabilities | 17,089 | 17,030 | |||||||
Redeemable noncontrolling interests | 0 | 0 | |||||||
GE shareowners' equity | 189 | 171 | |||||||
Noncontrolling interests | 0 | 0 | |||||||
Total equity | 189 | 171 | |||||||
Total liabilities, redeemable noncontrolling interests and equity | 17,278 | 17,202 | |||||||
Reportable Legal Entities | Subsidiary Guarantor | |||||||||
Assets | |||||||||
Cash and equivalents | 3 | 3 | |||||||
Investment securities | 0 | 0 | |||||||
Receivables - net | 31,020 | 30,470 | |||||||
Inventories | 0 | 0 | |||||||
Property, plant and equipment - net | 0 | 0 | |||||||
Investment in subsidiaries | 80,491 | 80,481 | |||||||
Goodwill and intangible assets | 0 | 0 | |||||||
All other assets | 79 | 39 | |||||||
Assets of discontinued operations | 0 | 0 | |||||||
Total assets | 111,593 | 110,992 | |||||||
Liabilities and equity | |||||||||
Short-term borrowings | 45,994 | 46,432 | |||||||
Accounts payable | 0 | 0 | |||||||
Other current liabilities | 3 | 117 | |||||||
Long-term and non-recourse borrowings | 34,601 | 34,389 | |||||||
All other liabilities | 279 | 481 | |||||||
Liabilities of discontinued operations | 0 | 0 | |||||||
Total Liabilities | 80,878 | 81,419 | |||||||
Redeemable noncontrolling interests | 0 | 0 | |||||||
GE shareowners' equity | 30,716 | 29,573 | |||||||
Noncontrolling interests | 0 | 0 | |||||||
Total equity | 30,716 | 29,573 | |||||||
Total liabilities, redeemable noncontrolling interests and equity | 111,593 | 110,992 | |||||||
Reportable Legal Entities | Non- Guarantor Subsidiaries | |||||||||
Assets | |||||||||
Cash and equivalents | 40,174 | 46,994 | |||||||
Investment securities | 42,065 | 47,394 | |||||||
Receivables - net | 80,421 | 79,401 | |||||||
Inventories | 22,111 | 21,076 | |||||||
Property, plant and equipment - net | 46,284 | 46,366 | |||||||
Investment in subsidiaries | 472,477 | 492,674 | |||||||
Goodwill and intangible assets | 50,518 | 42,074 | |||||||
All other assets | 205,041 | 201,276 | |||||||
Assets of discontinued operations | 0 | 0 | |||||||
Total assets | 959,089 | 977,255 | |||||||
Liabilities and equity | |||||||||
Short-term borrowings | 25,300 | 25,919 | |||||||
Accounts payable | 56,038 | 47,366 | |||||||
Other current liabilities | 24,489 | 25,095 | |||||||
Long-term and non-recourse borrowings | 53,234 | 68,912 | |||||||
All other liabilities | 55,363 | 58,376 | |||||||
Liabilities of discontinued operations | 0 | 0 | |||||||
Total Liabilities | 214,424 | 225,667 | |||||||
Redeemable noncontrolling interests | 2,433 | 2,223 | |||||||
GE shareowners' equity | 740,746 | 747,719 | |||||||
Noncontrolling interests | 1,486 | 1,647 | |||||||
Total equity | 742,232 | 749,366 | |||||||
Total liabilities, redeemable noncontrolling interests and equity | 959,089 | 977,255 | |||||||
Consolidating Adjustments | |||||||||
Assets | |||||||||
Cash and equivalents | (547) | (1,426) | |||||||
Investment securities | (2,098) | (3,082) | |||||||
Receivables - net | (143,470) | (148,385) | |||||||
Inventories | (4,533) | (3,377) | |||||||
Property, plant and equipment - net | (2,007) | (1,615) | |||||||
Investment in subsidiaries | (837,439) | (845,840) | |||||||
Goodwill and intangible assets | 31,539 | 36,673 | |||||||
All other assets | (158,823) | (160,134) | |||||||
Assets of discontinued operations | 7,850 | 14,815 | |||||||
Total assets | (1,109,528) | (1,112,372) | |||||||
Liabilities and equity | |||||||||
Short-term borrowings | (218,441) | (208,727) | |||||||
Accounts payable | (41,375) | (38,343) | |||||||
Other current liabilities | (251) | 114 | |||||||
Long-term and non-recourse borrowings | (71,963) | (83,273) | |||||||
All other liabilities | (7,667) | (9,656) | |||||||
Liabilities of discontinued operations | 911 | 4,158 | |||||||
Total Liabilities | (338,786) | (335,727) | |||||||
Redeemable noncontrolling interests | 760 | 802 | |||||||
GE shareowners' equity | (771,651) | (777,463) | |||||||
Noncontrolling interests | 148 | 16 | |||||||
Total equity | (771,503) | (777,447) | |||||||
Total liabilities, redeemable noncontrolling interests and equity | $ (1,109,528) | $ (1,112,372) | |||||||
[1] | Our consolidated assets at June 30, 2017 included total assets of $5,851 million of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs. These assets included current receivables and net financing receivables of $1,445 million and investment securities of $1,004 million within continuing operations and assets of discontinued operations of $285 million. Our consolidated liabilities at June 30, 2017 included liabilities of certain VIEs for which the VIE creditors do not have recourse to GE. These liabilities included non-recourse borrowings of consolidated securitization entities (CSEs) of $(682) million within continuing operations. See Note 17. | ||||||||
[2] | The sum of accumulated other comprehensive income (loss) (AOCI) attributable to the Company was $(15,454) million and $(18,598) million at June 30, 2017 and December 31, 2016, respectively. | ||||||||
[3] | Included AOCI attributable to noncontrolling interests of $(271) million and $(278) million at June 30, 2017 and December 31, 2016, respectively. |
GUARANTOR FINANCIAL INFORMAT105
GUARANTOR FINANCIAL INFORMATION - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows – operating activities | ||
Cash from (used for) operating activities - continuing operations | $ 3,389 | $ 2,014 |
Cash from (used for) operating activities - discontinued operations | (895) | (4,849) |
Cash from (used for) operating activities | 2,494 | (2,835) |
Cash flows – investing activities | ||
Cash from (used for) investing activities – continuing operations | 4,083 | 42,414 |
Cash from (used for) investing activities – continuing operations | (1,922) | (10,646) |
Cash from (used for) investing activities | 2,161 | 31,768 |
Cash flows – financing activities | ||
Cash from (used for) financing activities – continuing operations | (12,089) | (62,763) |
Cash from (used for) financing activities – discontinued operations | 1,909 | (711) |
Cash from (used for) financing activities | (10,181) | (63,474) |
Effect of currency exchange rate changes on cash and equivalents | 538 | (24) |
Increase (decrease) in cash and equivalents | (4,988) | (34,565) |
Cash and equivalents at beginning of year | 49,558 | 90,878 |
Cash and equivalents at June 30 | 44,571 | 56,313 |
Less cash and equivalents of discontinued operations at June 30 | 522 | 4,190 |
Cash and equivalents of continuing operations at June 30 | 44,049 | 52,123 |
Reportable Legal Entities | ||
Cash flows – operating activities | ||
Cash from (used for) operating activities - continuing operations | 5,549 | 11,207 |
Cash flows – investing activities | ||
Cash from (used for) investing activities – continuing operations | 3,173 | 39,495 |
Cash flows – financing activities | ||
Cash from (used for) financing activities – continuing operations | (13,339) | (69,038) |
Reportable Legal Entities | Parent Company Guarantor | ||
Cash flows – operating activities | ||
Cash from (used for) operating activities - continuing operations | 12,674 | (21,014) |
Cash from (used for) operating activities - discontinued operations | (388) | (849) |
Cash from (used for) operating activities | 12,286 | (21,863) |
Cash flows – investing activities | ||
Cash from (used for) investing activities – continuing operations | (26,871) | 17,416 |
Cash from (used for) investing activities – continuing operations | 0 | 0 |
Cash from (used for) investing activities | (26,871) | 17,416 |
Cash flows – financing activities | ||
Cash from (used for) financing activities – continuing operations | 16,446 | 3,174 |
Cash from (used for) financing activities – discontinued operations | 0 | 0 |
Cash from (used for) financing activities | 16,446 | 3,174 |
Effect of currency exchange rate changes on cash and equivalents | 0 | 0 |
Increase (decrease) in cash and equivalents | 1,861 | (1,274) |
Cash and equivalents at beginning of year | 2,558 | 4,137 |
Cash and equivalents at June 30 | 4,420 | 2,863 |
Less cash and equivalents of discontinued operations at June 30 | 0 | 0 |
Cash and equivalents of continuing operations at June 30 | 4,420 | 2,863 |
Reportable Legal Entities | Subsidiary Issuer | ||
Cash flows – operating activities | ||
Cash from (used for) operating activities - continuing operations | 25 | 182 |
Cash from (used for) operating activities - discontinued operations | 0 | 0 |
Cash from (used for) operating activities | 25 | 182 |
Cash flows – investing activities | ||
Cash from (used for) investing activities – continuing operations | (25) | 16,084 |
Cash from (used for) investing activities – continuing operations | 0 | 0 |
Cash from (used for) investing activities | (25) | 16,084 |
Cash flows – financing activities | ||
Cash from (used for) financing activities – continuing operations | 0 | (16,265) |
Cash from (used for) financing activities – discontinued operations | 0 | 0 |
Cash from (used for) financing activities | 0 | (16,265) |
Effect of currency exchange rate changes on cash and equivalents | 0 | 0 |
Increase (decrease) in cash and equivalents | 0 | 0 |
Cash and equivalents at beginning of year | 0 | 0 |
Cash and equivalents at June 30 | 0 | 0 |
Less cash and equivalents of discontinued operations at June 30 | 0 | 0 |
Cash and equivalents of continuing operations at June 30 | 0 | 0 |
Reportable Legal Entities | Subsidiary Guarantor | ||
Cash flows – operating activities | ||
Cash from (used for) operating activities - continuing operations | 225 | 1,032 |
Cash from (used for) operating activities - discontinued operations | 0 | (996) |
Cash from (used for) operating activities | 225 | 37 |
Cash flows – investing activities | ||
Cash from (used for) investing activities – continuing operations | 608 | 7,995 |
Cash from (used for) investing activities – continuing operations | 0 | 0 |
Cash from (used for) investing activities | 608 | 7,995 |
Cash flows – financing activities | ||
Cash from (used for) financing activities – continuing operations | (833) | (7,995) |
Cash from (used for) financing activities – discontinued operations | 0 | 0 |
Cash from (used for) financing activities | (833) | (7,995) |
Effect of currency exchange rate changes on cash and equivalents | 0 | 0 |
Increase (decrease) in cash and equivalents | 0 | 37 |
Cash and equivalents at beginning of year | 3 | 0 |
Cash and equivalents at June 30 | 3 | 37 |
Less cash and equivalents of discontinued operations at June 30 | 0 | 0 |
Cash and equivalents of continuing operations at June 30 | 3 | 37 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||
Cash flows – operating activities | ||
Cash from (used for) operating activities - continuing operations | 113,799 | 10,275 |
Cash from (used for) operating activities - discontinued operations | (507) | (3,826) |
Cash from (used for) operating activities | 113,292 | 6,449 |
Cash flows – investing activities | ||
Cash from (used for) investing activities – continuing operations | (60,997) | 97,631 |
Cash from (used for) investing activities – continuing operations | (1,922) | (10,646) |
Cash from (used for) investing activities | (62,919) | 86,985 |
Cash flows – financing activities | ||
Cash from (used for) financing activities – continuing operations | (60,547) | (142,451) |
Cash from (used for) financing activities – discontinued operations | 1,909 | (711) |
Cash from (used for) financing activities | (58,639) | (143,162) |
Effect of currency exchange rate changes on cash and equivalents | 538 | (24) |
Increase (decrease) in cash and equivalents | (7,728) | (49,752) |
Cash and equivalents at beginning of year | 48,423 | 107,350 |
Cash and equivalents at June 30 | 40,696 | 57,598 |
Less cash and equivalents of discontinued operations at June 30 | 522 | 4,190 |
Cash and equivalents of continuing operations at June 30 | 40,174 | 53,408 |
Consolidating Adjustments | ||
Cash flows – operating activities | ||
Cash from (used for) operating activities - continuing operations | (123,335) | 11,539 |
Cash from (used for) operating activities - discontinued operations | 0 | 821 |
Cash from (used for) operating activities | (123,335) | 12,361 |
Cash flows – investing activities | ||
Cash from (used for) investing activities – continuing operations | 91,369 | (96,712) |
Cash from (used for) investing activities – continuing operations | 0 | 0 |
Cash from (used for) investing activities | 91,369 | (96,712) |
Cash flows – financing activities | ||
Cash from (used for) financing activities – continuing operations | 32,845 | 100,775 |
Cash from (used for) financing activities – discontinued operations | 0 | 0 |
Cash from (used for) financing activities | 32,845 | 100,775 |
Effect of currency exchange rate changes on cash and equivalents | 0 | 0 |
Increase (decrease) in cash and equivalents | 879 | 16,424 |
Cash and equivalents at beginning of year | (1,426) | (20,609) |
Cash and equivalents at June 30 | (547) | (4,185) |
Less cash and equivalents of discontinued operations at June 30 | 0 | 0 |
Cash and equivalents of continuing operations at June 30 | $ (547) | $ (4,185) |
SUPPLEMENTAL INFORMATION - Sche
SUPPLEMENTAL INFORMATION - Schedule of Certain Supplemental Information Related to Cash Flows (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
All other operating activities | ||
All other operating activities | $ (2,190) | $ (5,040) |
Net dispositions (purchases) of GE shares for treasury | ||
Net dispositions (purchases) of GE shares for treasury | (2,732) | (14,292) |
GE | ||
All other operating activities | ||
(Gains) losses on purchases and sales of business interests | (42) | (3,140) |
Contract assets (net) | (3,202) | (2,431) |
Income taxes | (709) | (1,184) |
Interest charges | 353 | 182 |
Principal pension plans | 1,542 | 1,680 |
Other | (1,122) | (114) |
All other operating activities | (3,180) | (5,007) |
Net dispositions (purchases) of GE shares for treasury | ||
Open market purchases under share repurchase program | (3,344) | (14,244) |
Other purchases | 0 | (776) |
Dispositions | 612 | 726 |
Net dispositions (purchases) of GE shares for treasury | (2,732) | (14,292) |
Current tax expense (benefit) | 583 | 500 |
Net cash paid for income taxes | (1,292) | (1,684) |
Interest expense | 1,200 | 1,007 |
Cash paid for interest | (848) | (825) |
Pension costs | 1,869 | 1,780 |
Employer contributions | $ (327) | $ (100) |
SUPPLEMENTAL INFORMATION - S107
SUPPLEMENTAL INFORMATION - Schedule of Fair Value of Derivatives, Assets (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Offsetting Assets [Line Items] | ||
Assets | $ 4,077,000,000 | $ 5,467,000,000 |
Gross accrued interest | 470,000,000 | 768,000,000 |
Gross derivatives recognized in statement of financial position | 4,547,000,000 | 6,234,000,000 |
Amounts offset in statement of financial position | ||
Netting adjustments | (1,606,000,000) | (3,097,000,000) |
Cash collateral | (2,059,000,000) | (2,025,000,000) |
Amounts offset in statement of financial position | (3,665,000,000) | (5,121,000,000) |
Net derivatives | 882,000,000 | 1,113,000,000 |
Securities held as collateral | (432,000,000) | (442,000,000) |
Net amount | 450,000,000 | 671,000,000 |
Cumulative adjustment for non-performance risk | (1,000,000) | (3,000,000) |
Excluded excess cash collateral received | 284,000,000 | 6,000,000 |
Excluded excess cash collateral posted | 142,000,000 | 177,000,000 |
Excluded excess securities collateral received | 68,000,000 | 0 |
Derivatives accounted for as hedges | ||
Offsetting Assets [Line Items] | ||
Assets | 2,790,000,000 | 3,508,000,000 |
Derivatives accounted for as hedges | Interest rate contracts | ||
Offsetting Assets [Line Items] | ||
Assets | 2,728,000,000 | 3,106,000,000 |
Derivatives accounted for as hedges | Currency exchange contracts | ||
Offsetting Assets [Line Items] | ||
Assets | 62,000,000 | 402,000,000 |
Derivatives accounted for as hedges | Other contracts | ||
Offsetting Assets [Line Items] | ||
Assets | 0 | 0 |
Derivatives not accounted for as hedges | ||
Offsetting Assets [Line Items] | ||
Assets | 1,287,000,000 | 1,958,000,000 |
Derivatives not accounted for as hedges | Interest rate contracts | ||
Offsetting Assets [Line Items] | ||
Assets | 58,000,000 | 62,000,000 |
Derivatives not accounted for as hedges | Currency exchange contracts | ||
Offsetting Assets [Line Items] | ||
Assets | 1,132,000,000 | 1,778,000,000 |
Derivatives not accounted for as hedges | Other contracts | ||
Offsetting Assets [Line Items] | ||
Assets | $ 97,000,000 | $ 119,000,000 |
SUPPLEMENTAL INFORMATION - S108
SUPPLEMENTAL INFORMATION - Schedule of Fair Value of Derivatives, Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Offsetting Liabilities [Line Items] | ||
Liabilities | $ 2,511 | $ 4,883 |
Gross accrued interest | (13) | (24) |
Gross derivatives recognized in statement of financial position | 2,497 | 4,859 |
Amounts offset in statement of financial position | ||
Netting adjustments | (1,605) | (3,094) |
Cash collateral | (462) | (1,355) |
Amounts offset in statement of financial position | (2,066) | (4,449) |
Net derivatives | 431 | 410 |
Securities held as collateral | 0 | 0 |
Net amount | 431 | 410 |
Derivatives accounted for as hedges | ||
Offsetting Liabilities [Line Items] | ||
Liabilities | 269 | 834 |
Derivatives accounted for as hedges | Other contracts | ||
Offsetting Liabilities [Line Items] | ||
Liabilities | 0 | 0 |
Derivatives accounted for as hedges | Interest rate contracts | ||
Offsetting Liabilities [Line Items] | ||
Liabilities | 109 | 210 |
Derivatives accounted for as hedges | Currency exchange contracts | ||
Offsetting Liabilities [Line Items] | ||
Liabilities | 160 | 624 |
Derivatives not accounted for as hedges | ||
Offsetting Liabilities [Line Items] | ||
Liabilities | 2,242 | 4,048 |
Derivatives not accounted for as hedges | Other contracts | ||
Offsetting Liabilities [Line Items] | ||
Liabilities | 34 | 17 |
Derivatives not accounted for as hedges | Interest rate contracts | ||
Offsetting Liabilities [Line Items] | ||
Liabilities | 10 | 20 |
Derivatives not accounted for as hedges | Currency exchange contracts | ||
Offsetting Liabilities [Line Items] | ||
Liabilities | $ 2,199 | $ 4,011 |
SUPPLEMENTAL INFORMATION - S109
SUPPLEMENTAL INFORMATION - Schedule of Cash Flow Hedge Activity (Details) - Cash Flow Hedges - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in AOCI | $ (34) | $ (12) | $ (56) | $ 45 |
Gain (loss) reclassified from AOCI into earnings | 65 | 14 | 64 | (71) |
Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in AOCI | 34 | 12 | 56 | (45) |
Gain (loss) reclassified from AOCI into earnings | 65 | 14 | 64 | (71) |
Hedges | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in AOCI | 3 | 12 | 2 | 31 |
Gain (loss) reclassified from AOCI into earnings | (6) | (26) | (15) | (55) |
Hedges | Currency exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in AOCI | 32 | 1 | 54 | (77) |
Gain (loss) reclassified from AOCI into earnings | 71 | 40 | 79 | (13) |
Hedges | Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in AOCI | (2) | (1) | 0 | 0 |
Gain (loss) reclassified from AOCI into earnings | $ 0 | $ (1) | $ 0 | $ (3) |
SUPPLEMENTAL INFORMATION - Narr
SUPPLEMENTAL INFORMATION - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Loss expected to be transfered to earnings as an expense | $ 18 | ||
Maximum term of derivative instruments that hedge forecasted transactions | 15 years | 16 years | |
Fair value of collateral | $ 2,491 | ||
Fair value of cash collateral | 2,059 | $ 2,025 | |
Fair value of collateral in the form of securities | 432 | $ 442 | |
Fair value of collateral posted | 462 | ||
Exposure to counterparties (including accrued interest), net of collateral held | 320 | ||
Net amount of derivative liability | 367 | ||
Amounts Offset In Statement Of Financial Position | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair value of cash collateral | 2,059 | ||
Cash flow hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Pre-tax amount in AOCI related to cash flow hedges of forecasted transactions | $ 41 |
SEGMENT OPERATIONS (Details)
SEGMENT OPERATIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 29,558 | $ 33,494 | $ 57,219 | $ 61,339 | |||
Revenues, V% | (12.00%) | (7.00%) | |||||
Corporate items and eliminations | $ 1,515 | 3,824 | $ 2,346 | 4,063 | |||
GE interest and other financial charges | (1,174) | (1,326) | (2,313) | (3,062) | |||
GE provision for income taxes | (15) | (461) | (31) | (284) | |||
Earnings (loss) from continuing operations attributable to the Company | 1,520 | 3,452 | 2,412 | 3,989 | |||
Earnings (loss) from discontinued operations, net of taxes | $ (146) | (541) | $ (385) | (849) | |||
Earnings (loss) from discontinued operations, net of taxes, V% | 73.00% | 55.00% | |||||
Less net earnings attributable to noncontrolling interests, discontinued operations | $ 7 | 3 | $ 7 | 3 | |||
Earnings (loss) from discontinued operations, net of tax and noncontrolling interest | (146) | (541) | (385) | (849) | |||
Net earnings (loss) attributable to GE common shareowners | 1,185 | 2,756 | 1,804 | 2,695 | |||
Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 30,493 | 31,401 | $ 59,190 | 60,155 | |||
Revenues, V% | (3.00%) | (2.00%) | |||||
Segment profit (loss) | $ 3,775 | 3,523 | $ 7,349 | 5,944 | |||
Segment profit (loss), V% | 7.00% | 24.00% | |||||
Operating Segments | Total industrial segment revenues | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 28,047 | 28,630 | $ 54,063 | 54,499 | |||
Revenues, V% | (2.00%) | (1.00%) | |||||
Segment profit (loss) | $ 3,947 | 4,122 | $ 7,568 | 7,437 | |||
Segment profit (loss), V% | (4.00%) | 2.00% | |||||
Operating Segments | Power | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 6,969 | 6,639 | $ 13,058 | 11,843 | |||
Revenues, V% | 5.00% | 10.00% | |||||
Segment profit (loss) | $ 1,031 | 1,140 | $ 1,827 | 1,714 | |||
Segment profit (loss), V% | (10.00%) | 7.00% | |||||
Operating Segments | Renewable Energy | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 2,457 | 2,094 | $ 4,501 | 3,763 | |||
Revenues, V% | 17.00% | 20.00% | |||||
Segment profit (loss) | $ 160 | 128 | $ 267 | 211 | |||
Segment profit (loss), V% | 25.00% | 27.00% | |||||
Operating Segments | Oil & Gas | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 3,108 | 3,219 | $ 6,110 | 6,533 | |||
Revenues, V% | (3.00%) | (6.00%) | |||||
Segment profit (loss) | $ 155 | 320 | $ 361 | 628 | |||
Segment profit (loss), V% | (52.00%) | (43.00%) | |||||
Operating Segments | Aviation | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 6,532 | 6,511 | $ 13,336 | 12,774 | |||
Revenues, V% | 0.00% | 4.00% | |||||
Segment profit (loss) | $ 1,492 | 1,348 | $ 3,176 | 2,872 | |||
Segment profit (loss), V% | 11.00% | 11.00% | |||||
Operating Segments | Healthcare | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 4,700 | 4,525 | $ 8,990 | 8,708 | |||
Revenues, V% | 4.00% | 3.00% | |||||
Segment profit (loss) | $ 826 | 782 | $ 1,469 | 1,413 | |||
Segment profit (loss), V% | 6.00% | 4.00% | |||||
Operating Segments | Transportation | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 1,071 | 1,240 | $ 2,110 | 2,222 | |||
Revenues, V% | (14.00%) | (5.00%) | |||||
Segment profit (loss) | $ 203 | 273 | $ 359 | 437 | |||
Segment profit (loss), V% | (26.00%) | (18.00%) | |||||
Operating Segments | Energy Connections & Lighting | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 3,210 | 4,401 | $ 5,957 | 8,657 | |||
Revenues, V% | (27.00%) | (31.00%) | |||||
Segment profit (loss) | $ 80 | 131 | $ 109 | 162 | |||
Segment profit (loss), V% | (39.00%) | (33.00%) | |||||
Operating Segments | Capital | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 2,446 | 2,771 | $ 5,127 | 5,656 | |||
Revenues, V% | (12.00%) | (9.00%) | |||||
Segment profit (loss) | $ (172) | (600) | $ (219) | (1,492) | |||
Segment profit (loss), V% | 71.00% | 85.00% | |||||
Corporate items and eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ (935) | 2,093 | $ (1,972) | 1,184 | |||
Corporate items and eliminations | (1,583) | 974 | (3,592) | (597) | |||
Segment Reconciling Items | |||||||
Segment Reporting Information [Line Items] | |||||||
GE interest and other financial charges | (637) | (567) | (1,200) | (1,007) | |||
GE provision for income taxes | (218) | (629) | (361) | (793) | |||
GE | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | [1] | $ 27,421 | 30,604 | $ 52,902 | 55,210 | ||
Segment profit (loss), V% | (59.00%) | (38.00%) | |||||
Corporate items and eliminations | [1] | $ 1,538 | 3,847 | $ 2,461 | 4,141 | ||
GE interest and other financial charges | [1] | (637) | (567) | (1,200) | (1,007) | ||
GE provision for income taxes | [1] | (218) | (629) | (361) | (793) | ||
Earnings (loss) from continuing operations attributable to the Company | [1] | 1,338 | 3,300 | 2,196 | 3,548 | ||
Earnings (loss) from discontinued operations, net of taxes | [1] | (152) | (544) | (392) | (852) | ||
Less net earnings attributable to noncontrolling interests, discontinued operations | [1] | 0 | 0 | 0 | 0 | ||
Earnings (loss) from discontinued operations, net of tax and noncontrolling interest | [1] | $ (152) | (544) | $ (392) | [2] | (852) | [2] |
Earnings (loss) from discontinued operations, net of tax and noncontrolling interest, V% | 72.00% | 54.00% | |||||
Net earnings (loss) attributable to GE common shareowners | [1] | $ 1,185 | $ 2,756 | $ 1,804 | $ 2,695 | ||
Consolidated net earnings (loss) attributable to the GE common shareowners, V% | (57.00%) | (33.00%) | |||||
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. | ||||||
[2] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. |