Document and Entity Information
Document and Entity Information shares in Thousands | 9 Months Ended |
Sep. 30, 2018shares | |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2018 |
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 Emerging Growth Company | false |
Entity Small Business | false |
Entity Common Stock, Shares Outstanding | 8,698,115 |
Document Fiscal Period Focus | Q3 |
Document Fiscal Year Focus | 2,018 |
STATEMENT OF EARNINGS (LOSS) (U
STATEMENT OF EARNINGS (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Revenues | |||||
Sales | $ 27,465 | $ 28,764 | $ 82,432 | $ 80,456 | |
GE Capital revenues from services | 2,109 | 1,898 | 5,905 | 6,184 | |
Total revenues | 29,573 | 30,662 | 88,337 | 86,640 | |
Costs and expenses | |||||
Selling, general and administrative expenses | 4,855 | 4,741 | 13,547 | 13,180 | |
Interest and other financial charges | 1,227 | 1,232 | 3,807 | 3,545 | |
Investment contracts, insurance losses and insurance annuity benefits | 710 | 617 | 2,009 | 1,908 | |
Goodwill impairment | 21,973 | 947 | 21,973 | 947 | |
Non-operating benefit costs | 807 | 611 | 2,188 | 1,824 | |
Other costs and expenses | 98 | 261 | 286 | 584 | |
Total costs and expenses | 52,515 | 32,082 | 110,604 | 87,512 | |
Other income | 205 | 2,165 | 1,275 | 2,692 | |
GE Capital earnings (loss) from continuing operations | 0 | 0 | 0 | 0 | |
Earnings (loss) from continuing operations before income taxes | (22,736) | 746 | (20,992) | 1,820 | |
Benefit (provision) for income taxes | (162) | 551 | (677) | 693 | |
Earnings (loss) from continuing operations | (22,899) | 1,297 | (21,670) | 2,513 | |
Earnings (loss) from discontinued operations, net of taxes | 39 | (106) | (1,634) | (490) | |
Net earnings (loss) | (22,859) | 1,191 | (23,304) | 2,023 | |
Less net earnings (loss) attributable to noncontrolling interests | (90) | (169) | (188) | (312) | |
Net earnings (loss) attributable to the Company | (22,769) | 1,360 | (23,116) | 2,334 | |
Preferred stock dividends | (39) | (36) | (260) | (252) | |
Net earnings (loss) attributable to GE common shareowners | (22,808) | 1,324 | (23,376) | 2,082 | |
Amounts attributable to GE common shareowners | |||||
Earnings (loss) from continuing operations | (22,899) | 1,297 | (21,670) | 2,513 | |
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | (90) | (169) | (188) | (318) | |
Earnings (loss) from continuing operations attributable to the Company | (22,808) | 1,465 | (21,482) | 2,831 | |
Preferred stock dividends | (39) | (36) | (260) | (252) | |
Earnings (loss) from continuing operations attributable to GE common shareowners | (22,847) | 1,429 | (21,742) | 2,579 | |
Earnings (loss) from discontinued operations, net of taxes | 39 | (106) | (1,634) | (490) | |
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | 0 | (1) | 0 | 6 | |
Net earnings (loss) attributable to GE common shareowners | $ (22,808) | $ 1,324 | $ (23,376) | $ 2,082 | |
Earnings (loss) from continuing operations | |||||
Diluted earnings (loss) per share (in dollars per share) | $ (2.63) | $ 0.16 | $ (2.50) | $ 0.29 | |
Basic earnings (loss) per share (in dollars per share) | (2.63) | 0.16 | (2.50) | 0.30 | |
Net earnings (loss) | |||||
Diluted earnings (loss) per share (in dollars per share) | (2.62) | 0.15 | (2.69) | 0.24 | |
Basic earnings (loss) per share (in dollars per share) | (2.62) | 0.15 | (2.69) | 0.24 | |
Dividends declared per common share (in dollars per share) | $ 0.12 | $ 0.24 | $ 0.36 | $ 0.72 | |
Goods | |||||
Revenues | |||||
Sales | $ 18,095 | $ 19,244 | $ 53,377 | $ 54,348 | |
Costs and expenses | |||||
Cost of sales | 15,991 | 16,361 | 45,103 | 45,911 | |
Services | |||||
Revenues | |||||
Sales | 9,370 | 9,521 | 29,055 | 26,108 | |
Costs and expenses | |||||
Cost of sales | 6,855 | 7,310 | 21,692 | 19,614 | |
GE | |||||
Revenues | |||||
GE Capital revenues from services | [1] | 0 | 0 | 0 | 0 |
Total revenues | [1] | 27,456 | 28,774 | 82,429 | 80,683 |
Costs and expenses | |||||
Selling, general and administrative expenses | [1] | 4,660 | 4,604 | 12,990 | 12,199 |
Interest and other financial charges | [1] | 662 | 718 | 1,995 | 1,918 |
Investment contracts, insurance losses and insurance annuity benefits | [1] | 0 | 0 | 0 | 0 |
Goodwill impairment | [1] | 21,973 | 947 | 21,973 | 947 |
Non-operating benefit costs | [1] | 804 | 610 | 2,178 | 1,811 |
Other costs and expenses | [1] | 0 | 0 | 0 | 0 |
Total costs and expenses | [1] | 50,449 | 29,978 | 104,390 | 80,977 |
Other income | [1] | 201 | 2,160 | 1,237 | 2,659 |
GE Capital earnings (loss) from continuing operations | [1] | 19 | 24 | (403) | (195) |
Earnings (loss) from continuing operations before income taxes | [1] | (22,774) | 981 | (21,128) | 2,170 |
Benefit (provision) for income taxes | [1] | (205) | 281 | (842) | 93 |
Earnings (loss) from continuing operations | [1] | (22,979) | 1,261 | (21,970) | 2,263 |
Earnings (loss) from discontinued operations, net of taxes | [1] | 39 | (105) | (1,634) | (497) |
Net earnings (loss) | [1] | (22,940) | 1,156 | (23,604) | 1,766 |
Less net earnings (loss) attributable to noncontrolling interests | [1] | (132) | (168) | (228) | (316) |
Net earnings (loss) attributable to the Company | [1] | (22,808) | 1,324 | (23,376) | 2,082 |
Preferred stock dividends | [1] | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to GE common shareowners | [1] | (22,808) | 1,324 | (23,376) | 2,082 |
Amounts attributable to GE common shareowners | |||||
Earnings (loss) from continuing operations | [1] | (22,979) | 1,261 | (21,970) | 2,263 |
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | [1] | (132) | (168) | (228) | (316) |
Earnings (loss) from continuing operations attributable to the Company | [1] | (22,847) | 1,429 | (21,742) | 2,579 |
Preferred stock dividends | [1] | 0 | 0 | 0 | 0 |
Earnings (loss) from continuing operations attributable to GE common shareowners | [1] | (22,847) | 1,429 | (21,742) | 2,579 |
Earnings (loss) from discontinued operations, net of taxes | [1] | 39 | (105) | (1,634) | (497) |
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | [1] | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to GE common shareowners | [1] | (22,808) | 1,324 | (23,376) | 2,082 |
GE | Goods | |||||
Revenues | |||||
Sales | [1] | 18,072 | 19,216 | 53,305 | 54,408 |
Costs and expenses | |||||
Cost of sales | [1] | 15,976 | 16,343 | 45,046 | 45,993 |
GE | Services | |||||
Revenues | |||||
Sales | [1] | 9,383 | 9,558 | 29,123 | 26,275 |
Costs and expenses | |||||
Cost of sales | [1] | 6,373 | 6,756 | 20,207 | 18,108 |
Financial Services (GE Capital) | |||||
Revenues | |||||
GE Capital revenues from services | 2,436 | 2,359 | 6,975 | 7,424 | |
Total revenues | 2,473 | 2,397 | 7,075 | 7,525 | |
Costs and expenses | |||||
Selling, general and administrative expenses | 332 | 284 | 987 | 1,346 | |
Interest and other financial charges | 704 | 790 | 2,296 | 2,373 | |
Investment contracts, insurance losses and insurance annuity benefits | 732 | 640 | 2,071 | 1,958 | |
Goodwill impairment | 0 | 0 | 0 | 0 | |
Non-operating benefit costs | 2 | 1 | 9 | 12 | |
Other costs and expenses | 115 | 271 | 328 | 629 | |
Total costs and expenses | 2,416 | 2,608 | 7,342 | 8,070 | |
Other income | 0 | 0 | 0 | 0 | |
GE Capital earnings (loss) from continuing operations | 0 | 0 | 0 | 0 | |
Earnings (loss) from continuing operations before income taxes | 57 | (211) | (268) | (545) | |
Benefit (provision) for income taxes | 43 | 270 | 165 | 600 | |
Earnings (loss) from continuing operations | 99 | 59 | (103) | 55 | |
Earnings (loss) from discontinued operations, net of taxes | 40 | (106) | (1,579) | (494) | |
Net earnings (loss) | 139 | (47) | (1,682) | (439) | |
Less net earnings (loss) attributable to noncontrolling interests | 42 | (2) | 40 | 5 | |
Net earnings (loss) attributable to the Company | 98 | (46) | (1,722) | (443) | |
Preferred stock dividends | (39) | (36) | (260) | (252) | |
Net earnings (loss) attributable to GE common shareowners | 59 | (81) | (1,982) | (695) | |
Amounts attributable to GE common shareowners | |||||
Earnings (loss) from continuing operations | 99 | 59 | (103) | 55 | |
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | 42 | (1) | 40 | (2) | |
Earnings (loss) from continuing operations attributable to the Company | 58 | 60 | (143) | 57 | |
Preferred stock dividends | (39) | (36) | (260) | (252) | |
Earnings (loss) from continuing operations attributable to GE common shareowners | 19 | 24 | (403) | (195) | |
Earnings (loss) from discontinued operations, net of taxes | 40 | (106) | (1,579) | (494) | |
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | 0 | (1) | 0 | 6 | |
Net earnings (loss) attributable to GE common shareowners | 59 | (81) | (1,982) | (695) | |
Financial Services (GE Capital) | Goods | |||||
Revenues | |||||
Sales | 37 | 39 | 100 | 101 | |
Costs and expenses | |||||
Cost of sales | 28 | 30 | 78 | 79 | |
Financial Services (GE Capital) | Services | |||||
Revenues | |||||
Sales | 0 | 0 | 0 | 0 | |
Costs and expenses | |||||
Cost of sales | $ 502 | $ 592 | $ 1,573 | $ 1,673 | |
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ (22,859) | $ 1,191 | $ (23,304) | $ 2,023 |
Less net earnings (loss) attributable to noncontrolling interests | (90) | (169) | (188) | (312) |
Net earnings (loss) attributable to the Company | (22,769) | 1,360 | (23,116) | 2,334 |
Other comprehensive income (loss) | ||||
Investment securities | (57) | 21 | 68 | 213 |
Currency translation adjustments | (633) | 501 | (1,471) | 1,829 |
Cash flow hedges | (9) | 100 | (35) | 109 |
Benefit plans | 863 | 423 | 2,521 | 2,032 |
Other comprehensive income (loss) | 164 | 1,046 | 1,082 | 4,184 |
Less other comprehensive income (loss) attributable to noncontrolling interests | (39) | 124 | (92) | 131 |
Other comprehensive income (loss) attributable to the Company | 203 | 922 | 1,174 | 4,053 |
Comprehensive income (loss) | (22,695) | 2,236 | (22,222) | 6,207 |
Less comprehensive income (loss) attributable to noncontrolling interests | (129) | (46) | (280) | (181) |
Comprehensive income (loss) attributable to the Company | $ (22,566) | $ 2,282 | $ (21,941) | $ 6,387 |
STATEMENT OF FINANCIAL POSITION
STATEMENT OF FINANCIAL POSITION - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |
Assets | |||
Cash, cash equivalents and restricted cash | [1] | $ 26,932 | $ 43,967 |
Investment securities (Note 3) | 34,761 | 38,696 | |
Current receivables (Note 4) | 20,414 | 24,209 | |
Inventories (Note 5) | 20,642 | 19,419 | |
Financing receivables – net (Note 6) | 7,918 | 10,336 | |
Other GE Capital receivables | 6,115 | 6,301 | |
Property, plant and equipment – net (Note 7) | 50,638 | 53,874 | |
Receivable from GE Capital | 0 | 0 | |
Investment in GE Capital | 0 | 0 | |
Goodwill (Note 8) | 60,377 | 83,968 | |
Other intangible assets – net (Note 8) | 18,838 | 20,273 | |
Contract and other deferred assets (Note 10) | 20,905 | 20,356 | |
All other assets | 24,491 | 28,949 | |
Deferred income taxes (Note 14) | 10,354 | 8,819 | |
Assets of businesses held for sale (Note 2) | 4,588 | 4,164 | |
Assets of discontinued operations (Note 2) | 4,716 | 5,912 | |
Total assets | [2] | 311,691 | 369,245 |
Liabilities and equity | |||
Short-term borrowings (Note 11) | 15,206 | 24,036 | |
Accounts payable, principally trade accounts | 15,748 | 15,172 | |
Progress collections and deferred income | 20,579 | 22,117 | |
Dividends payable | 1,054 | 1,052 | |
Other GE current liabilities | 17,930 | 16,919 | |
Non-recourse borrowings of consolidated securitization entities (Note 11) | 2,699 | 1,980 | |
Long-term borrowings (Note 11) | 97,060 | 108,575 | |
Investment contracts, insurance liabilities and insurance annuity benefits (Note 12) | 35,575 | 38,136 | |
Non-current compensation and benefits | 34,342 | 41,630 | |
All other liabilities | 19,913 | 20,784 | |
Liabilities of businesses held for sale (Note 2) | 1,360 | 1,248 | |
Liabilities of discontinued operations (Note 2) | 2,002 | 706 | |
Total Liabilities | [2] | 263,468 | 292,355 |
Redeemable noncontrolling interests (Note 15) | 386 | 3,391 | |
Preferred stock (5,939,874 shares outstanding at both September 30, 2018 and December 31, 2017) | 6 | 6 | |
Common stock (8,698,115,000 and 8,680,571,000 shares outstanding at September 30, 2018 and December 31, 2017, respectively) | 702 | 702 | |
Accumulated other comprehensive income (loss) - net attributable to GE | |||
Investment securities | [3] | (36) | (102) |
Currency translation adjustments | [3] | (6,040) | (4,661) |
Cash flow hedges | [3] | 27 | 62 |
Benefit plans | [3] | (7,181) | (9,702) |
Other capital | 37,311 | 37,384 | |
Retained earnings | 90,867 | 117,245 | |
Less common stock held in treasury | (84,202) | (84,902) | |
Total GE shareowners’ equity | 31,454 | 56,030 | |
Noncontrolling interests (Note 15) | [4] | 16,383 | 17,468 |
Total equity (Note 15) | 47,837 | 73,498 | |
Total liabilities, redeemable noncontrolling interests and equity | 311,691 | 369,245 | |
GE | |||
Assets | |||
Cash, cash equivalents and restricted cash | [5],[6] | 13,862 | 18,822 |
Investment securities (Note 3) | [6] | 874 | 569 |
Current receivables (Note 4) | [6] | 14,877 | 14,638 |
Inventories (Note 5) | [6] | 20,586 | 19,344 |
Financing receivables – net (Note 6) | [6] | 0 | 0 |
Other GE Capital receivables | [6] | 0 | 0 |
Property, plant and equipment – net (Note 7) | [6] | 22,041 | 23,963 |
Receivable from GE Capital | [6],[7] | 23,250 | 39,844 |
Investment in GE Capital | [6] | 11,673 | 13,493 |
Goodwill (Note 8) | [6] | 59,393 | 82,985 |
Other intangible assets – net (Note 8) | [6] | 18,597 | 20,014 |
Contract and other deferred assets (Note 10) | [6] | 20,905 | 20,356 |
All other assets | [6] | 10,307 | 13,627 |
Deferred income taxes (Note 14) | [6] | 8,901 | 7,815 |
Assets of businesses held for sale (Note 2) | [6] | 4,259 | 3,799 |
Assets of discontinued operations (Note 2) | [6] | 0 | 0 |
Total assets | [6] | 229,525 | 279,267 |
Liabilities and equity | |||
Short-term borrowings (Note 11) | [6],[7] | 8,694 | 14,548 |
Accounts payable, principally trade accounts | [6] | 21,026 | 21,851 |
Progress collections and deferred income | [6] | 20,847 | 22,221 |
Dividends payable | [6] | 1,054 | 1,052 |
Other GE current liabilities | [6] | 17,930 | 16,919 |
Non-recourse borrowings of consolidated securitization entities (Note 11) | [6] | 0 | 0 |
Long-term borrowings (Note 11) | [6],[7] | 60,863 | 67,040 |
Investment contracts, insurance liabilities and insurance annuity benefits (Note 12) | [6] | 0 | 0 |
Non-current compensation and benefits | [6] | 33,530 | 40,820 |
All other liabilities | [6] | 15,881 | 16,873 |
Liabilities of businesses held for sale (Note 2) | [6] | 1,399 | 1,248 |
Liabilities of discontinued operations (Note 2) | [6] | 77 | 23 |
Total Liabilities | [6] | 181,302 | 202,595 |
Redeemable noncontrolling interests (Note 15) | [6] | 386 | 3,391 |
Preferred stock (5,939,874 shares outstanding at both September 30, 2018 and December 31, 2017) | [6] | 6 | 6 |
Common stock (8,698,115,000 and 8,680,571,000 shares outstanding at September 30, 2018 and December 31, 2017, respectively) | [6] | 702 | 702 |
Accumulated other comprehensive income (loss) - net attributable to GE | |||
Investment securities | [6] | (36) | (102) |
Currency translation adjustments | [6] | (6,040) | (4,661) |
Cash flow hedges | [6] | 27 | 62 |
Benefit plans | [6] | (7,181) | (9,702) |
Other capital | [6] | 37,311 | 37,384 |
Retained earnings | [6] | 90,867 | 117,245 |
Less common stock held in treasury | [6] | (84,202) | (84,902) |
Total GE shareowners’ equity | [6] | 31,454 | 56,030 |
Noncontrolling interests (Note 15) | [6] | 16,383 | 17,252 |
Total equity (Note 15) | [6] | 47,837 | 73,282 |
Total liabilities, redeemable noncontrolling interests and equity | [6] | 229,525 | 279,267 |
Financial Services (GE Capital) | |||
Assets | |||
Cash, cash equivalents and restricted cash | [5] | 13,071 | 25,145 |
Investment securities (Note 3) | 33,961 | 38,231 | |
Current receivables (Note 4) | 0 | 0 | |
Inventories (Note 5) | 56 | 75 | |
Financing receivables – net (Note 6) | 15,663 | 21,967 | |
Other GE Capital receivables | 14,834 | 16,945 | |
Property, plant and equipment – net (Note 7) | 29,352 | 30,595 | |
Receivable from GE Capital | [7] | 0 | 0 |
Investment in GE Capital | 0 | 0 | |
Goodwill (Note 8) | 984 | 984 | |
Other intangible assets – net (Note 8) | 242 | 259 | |
Contract and other deferred assets (Note 10) | 0 | 0 | |
All other assets | 14,175 | 15,606 | |
Deferred income taxes (Note 14) | 1,449 | 999 | |
Assets of businesses held for sale (Note 2) | 0 | 0 | |
Assets of discontinued operations (Note 2) | 4,716 | 5,912 | |
Total assets | 128,503 | 156,716 | |
Liabilities and equity | |||
Short-term borrowings (Note 11) | [7] | 11,223 | 19,602 |
Accounts payable, principally trade accounts | 2,046 | 1,853 | |
Progress collections and deferred income | 0 | 0 | |
Dividends payable | 0 | 0 | |
Other GE current liabilities | 0 | 0 | |
Non-recourse borrowings of consolidated securitization entities (Note 11) | 2,699 | 1,980 | |
Long-term borrowings (Note 11) | [7] | 56,329 | 73,614 |
Investment contracts, insurance liabilities and insurance annuity benefits (Note 12) | 36,070 | 38,587 | |
Non-current compensation and benefits | 804 | 801 | |
All other liabilities | 5,735 | 5,886 | |
Liabilities of businesses held for sale (Note 2) | 0 | 0 | |
Liabilities of discontinued operations (Note 2) | 1,925 | 683 | |
Total Liabilities | 116,831 | 143,007 | |
Redeemable noncontrolling interests (Note 15) | 0 | 0 | |
Preferred stock (5,939,874 shares outstanding at both September 30, 2018 and December 31, 2017) | 6 | 6 | |
Common stock (8,698,115,000 and 8,680,571,000 shares outstanding at September 30, 2018 and December 31, 2017, respectively) | 0 | 0 | |
Accumulated other comprehensive income (loss) - net attributable to GE | |||
Investment securities | (28) | (99) | |
Currency translation adjustments | (234) | (225) | |
Cash flow hedges | 74 | 54 | |
Benefit plans | (504) | (524) | |
Other capital | 12,881 | 12,806 | |
Retained earnings | (522) | 1,476 | |
Less common stock held in treasury | 0 | 0 | |
Total GE shareowners’ equity | 11,673 | 13,493 | |
Noncontrolling interests (Note 15) | (1) | 217 | |
Total equity (Note 15) | 11,672 | 13,709 | |
Total liabilities, redeemable noncontrolling interests and equity | $ 128,503 | $ 156,716 | |
[1] | Includes restricted cash of $454 million and $668 million at September 30, 2018 and December 31, 2017, respectively. | ||
[2] | Our consolidated assets at September 30, 2018 included total assets of $5,248 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 $2,986 million within continuing operations and assets of discontinued operations of $109 million. Our consolidated liabilities at September 30, 2018 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 $(1,622) million within continuing operations. See Note 18. | ||
[3] | The sum of accumulated other comprehensive income (loss) (AOCI) attributable to the Company was $(13,229) million and $(14,404) million at September 30, 2018 and December 31, 2017, respectively. | ||
[4] | Included AOCI attributable to noncontrolling interests of $(318) million and $(226) million at September 30, 2018 and December 31, 2017, respectively. | ||
[5] | GE restricted cash was $380 million and $611 million at September 30, 2018 and December 31, 2017, respectively, and GE Capital restricted cash was $74 million and $57 million at September 30, 2018 and December 31, 2017, respectively. | ||
[6] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. | ||
[7] | In 2015, senior unsecured notes and commercial paper were assumed by GE upon its merger with GE Capital, resulting in an intercompany receivable and payable between GE and GE Capital. See Note 11. |
STATEMENT OF FINANCIAL POSITI_2
STATEMENT OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |
Preferred stock, shares outstanding | 5,939,874 | 5,939,874 | |
Common stock, shares outstanding | 8,698,115,000 | 8,680,571,000 | |
Restricted cash | $ 454 | $ 668 | |
Total assets of certain variable interest entities | 5,248 | ||
Sum of accumulated other comprehensive income (loss) (AOCI) attributable to the Company | (13,229) | (14,404) | |
Total equity | $ 47,837 | $ 73,498 | |
Financial Services (GE Capital) | |||
Preferred stock, shares outstanding | 5,939,874 | 5,939,874 | |
Common stock, shares outstanding | 8,698,115,000 | 8,680,571,000 | |
Restricted cash | $ 74 | $ 57 | |
Total equity | $ 11,672 | $ 13,709 | |
GE | |||
Preferred stock, shares outstanding | 5,939,874 | 5,939,874 | |
Common stock, shares outstanding | 8,698,115,000 | 8,680,571,000 | |
Restricted cash | $ 380 | $ 611 | |
Total equity | [1] | 47,837 | 73,282 |
Attributable to noncontrolling interests | |||
Total equity | (318) | $ (226) | |
Current receivables and net financing receivables | |||
Total assets of certain variable interest entities | 2,986 | ||
Assets of discontinued operations | |||
Total assets of certain variable interest entities | 109 | ||
Non-recourse borrowings of consolidated securitization entities (CSEs) | |||
Non-recourse borrowings of consolidated securitization entities (CSEs) within continuing operations | $ (1,622) | ||
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
STATEMENT OF CASH FLOWS (UNAUDI
STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |||||
Cash flows – operating activities | |||||||||
Net earnings (loss) | $ (22,859) | $ 1,191 | $ (23,304) | $ 2,023 | |||||
(Earnings) loss from discontinued operations | (39) | 106 | 1,634 | 490 | |||||
Adjustments to reconcile net earnings (loss) to cash provided from operating activities | |||||||||
Depreciation and amortization of property, plant and equipment | 4,222 | 3,715 | |||||||
Amortization of intangible assets | 2,126 | 1,713 | |||||||
Goodwill impairment | 21,973 | 947 | 21,973 | 947 | |||||
(Earnings) loss from continuing operations retained by GE Capital | 0 | 0 | |||||||
Deferred income taxes | (171) | (1,270) | |||||||
Decrease (increase) in contract and other deferred assets | (960) | (2,931) | |||||||
Decrease (increase) in GE current receivables | 2,873 | 1,348 | |||||||
Decrease (increase) in inventories | (2,016) | (1,726) | |||||||
Increase (decrease) in accounts payable | 1,051 | (533) | |||||||
Increase (decrease) in GE progress collections | (1,024) | 924 | |||||||
All other operating activities | (6,739) | (1,320) | |||||||
Cash from (used for) operating activities – continuing operations | (333) | 3,381 | |||||||
Cash from (used for) operating activities – discontinued operations | (102) | (490) | |||||||
Cash from (used for) operating activities | (435) | 2,892 | |||||||
Cash flows – investing activities | |||||||||
Additions to property, plant and equipment | (4,983) | (5,071) | |||||||
Dispositions of property, plant and equipment | 2,707 | 3,768 | |||||||
Additions to internal-use software | (278) | (418) | |||||||
Net decrease (increase) in GE Capital financing receivables | 1,281 | 1,184 | |||||||
Proceeds from sale of discontinued operations | 29 | 1,018 | |||||||
Proceeds from principal business dispositions | 5,564 | 3,030 | |||||||
Net cash from (payments for) principal businesses purchased | (21) | (6,053) | |||||||
All other investing activities | 3,764 | 7,800 | |||||||
Cash from (used for) investing activities – continuing operations | 8,064 | 5,259 | |||||||
Cash from (used for) investing activities – discontinued operations | (224) | (2,515) | |||||||
Cash from (used for) investing activities | 7,840 | 2,744 | |||||||
Cash flows – financing activities | |||||||||
Net increase (decrease) in borrowings (maturities of 90 days or less) | (1,975) | 531 | |||||||
Newly issued debt (maturities longer than 90 days) | 2,431 | 9,337 | |||||||
Repayments and other debt reductions (maturities longer than 90 days) | (18,563) | (18,418) | |||||||
Net dispositions (purchases) of GE shares for treasury | (6) | (2,620) | |||||||
Dividends paid to shareowners | (3,282) | (6,417) | |||||||
All other financing activities | (2,932) | (640) | |||||||
Cash from (used for) financing activities – continuing operations | (24,326) | (18,228) | |||||||
Cash from (used for) financing activities – discontinued operations | 0 | 1,905 | |||||||
Cash from (used for) financing activities | (24,326) | (16,323) | |||||||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | (440) | 1,253 | |||||||
Increase (decrease) in cash, cash equivalents and restricted cash | (17,361) | (9,434) | |||||||
Cash, cash equivalents and restricted cash at beginning of year | 44,724 | 50,384 | $ 50,384 | ||||||
Cash, cash equivalents and restricted cash at September 30 | 27,364 | 40,950 | 27,364 | 40,950 | 44,724 | ||||
Less cash, cash equivalents and restricted cash of discontinued operations at September 30 | 432 | 501 | 432 | 501 | |||||
Cash, cash equivalents and restricted cash of continuing operations at September 30 | 26,932 | [1] | 40,449 | 26,932 | [1] | 40,449 | 43,967 | [1] | |
GE | |||||||||
Cash flows – operating activities | |||||||||
Net earnings (loss) | [2] | (22,940) | 1,156 | (23,604) | 1,766 | ||||
(Earnings) loss from discontinued operations | [2] | (39) | 105 | 1,634 | 497 | ||||
Adjustments to reconcile net earnings (loss) to cash provided from operating activities | |||||||||
Depreciation and amortization of property, plant and equipment | [2] | 2,621 | 1,977 | ||||||
Amortization of intangible assets | [2] | 2,085 | 1,662 | ||||||
Goodwill impairment | [2] | 21,973 | 947 | 21,973 | 947 | ||||
(Earnings) loss from continuing operations retained by GE Capital | [2],[3] | 403 | 4,211 | ||||||
Deferred income taxes | [2] | 363 | (1,002) | ||||||
Decrease (increase) in contract and other deferred assets | [2] | (960) | (2,931) | ||||||
Decrease (increase) in GE current receivables | [2] | (668) | 772 | ||||||
Decrease (increase) in inventories | [2] | (2,032) | (1,709) | ||||||
Increase (decrease) in accounts payable | [2] | 1,243 | (995) | ||||||
Increase (decrease) in GE progress collections | [2] | (873) | 1,015 | ||||||
All other operating activities | [2] | (6,315) | (2,160) | ||||||
Cash from (used for) operating activities – continuing operations | [2] | (4,128) | 4,051 | ||||||
Cash from (used for) operating activities – discontinued operations | [2] | 0 | 0 | ||||||
Cash from (used for) operating activities | [2] | (4,128) | 4,051 | ||||||
Cash flows – investing activities | |||||||||
Additions to property, plant and equipment | [2] | (2,419) | (3,051) | ||||||
Dispositions of property, plant and equipment | [2] | 522 | 825 | ||||||
Additions to internal-use software | [2] | (262) | (396) | ||||||
Net decrease (increase) in GE Capital financing receivables | [2] | 0 | 0 | ||||||
Proceeds from sale of discontinued operations | [2] | 0 | 0 | ||||||
Proceeds from principal business dispositions | [2] | 3,357 | 2,908 | ||||||
Net cash from (payments for) principal businesses purchased | [2] | (21) | (6,053) | ||||||
All other investing activities | [2] | (754) | (1,955) | ||||||
Cash from (used for) investing activities – continuing operations | [2] | 423 | (7,720) | ||||||
Cash from (used for) investing activities – discontinued operations | [2] | 0 | 0 | ||||||
Cash from (used for) investing activities | [2] | 424 | (7,720) | ||||||
Cash flows – financing activities | |||||||||
Net increase (decrease) in borrowings (maturities of 90 days or less) | [2] | (1,678) | 4 | ||||||
Newly issued debt (maturities longer than 90 days) | [2] | 6,638 | 16,214 | ||||||
Repayments and other debt reductions (maturities longer than 90 days) | [2] | (1,846) | (1,532) | ||||||
Net dispositions (purchases) of GE shares for treasury | [2] | (6) | (2,620) | ||||||
Dividends paid to shareowners | [2] | (3,135) | (6,269) | ||||||
All other financing activities | [2] | (841) | (461) | ||||||
Cash from (used for) financing activities – continuing operations | [2] | (868) | 5,335 | ||||||
Cash from (used for) financing activities – discontinued operations | [2] | 0 | 0 | ||||||
Cash from (used for) financing activities | [2] | (868) | 5,335 | ||||||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | [2] | (388) | 504 | ||||||
Increase (decrease) in cash, cash equivalents and restricted cash | [2] | (4,961) | 2,170 | ||||||
Cash, cash equivalents and restricted cash at beginning of year | [2] | 18,822 | 11,083 | 11,083 | |||||
Cash, cash equivalents and restricted cash at September 30 | [2] | 13,862 | 13,253 | 13,862 | 13,253 | 18,822 | |||
Less cash, cash equivalents and restricted cash of discontinued operations at September 30 | [2] | 0 | 0 | 0 | 0 | ||||
Cash, cash equivalents and restricted cash of continuing operations at September 30 | [2] | 13,862 | [4] | 13,253 | 13,862 | [4] | 13,253 | 18,822 | [4] |
Financial Services (GE Capital) | |||||||||
Cash flows – operating activities | |||||||||
Net earnings (loss) | 139 | (47) | (1,682) | (439) | |||||
(Earnings) loss from discontinued operations | (40) | 106 | 1,579 | 494 | |||||
Adjustments to reconcile net earnings (loss) to cash provided from operating activities | |||||||||
Depreciation and amortization of property, plant and equipment | 1,593 | 1,736 | |||||||
Amortization of intangible assets | 42 | 50 | |||||||
Goodwill impairment | 0 | 0 | 0 | 0 | |||||
(Earnings) loss from continuing operations retained by GE Capital | [3] | 0 | 0 | ||||||
Deferred income taxes | (533) | (267) | |||||||
Decrease (increase) in contract and other deferred assets | 0 | 0 | |||||||
Decrease (increase) in GE current receivables | 0 | 0 | |||||||
Decrease (increase) in inventories | 20 | 0 | |||||||
Increase (decrease) in accounts payable | (12) | (97) | |||||||
Increase (decrease) in GE progress collections | 0 | 0 | |||||||
All other operating activities | (509) | 577 | |||||||
Cash from (used for) operating activities – continuing operations | 497 | 2,053 | |||||||
Cash from (used for) operating activities – discontinued operations | (101) | (490) | |||||||
Cash from (used for) operating activities | 395 | 1,563 | |||||||
Cash flows – investing activities | |||||||||
Additions to property, plant and equipment | (2,630) | (2,422) | |||||||
Dispositions of property, plant and equipment | 2,196 | 3,186 | |||||||
Additions to internal-use software | (16) | (22) | |||||||
Net decrease (increase) in GE Capital financing receivables | 6,656 | 3,242 | |||||||
Proceeds from sale of discontinued operations | 29 | 1,018 | |||||||
Proceeds from principal business dispositions | 2,011 | 0 | |||||||
Net cash from (payments for) principal businesses purchased | 0 | 0 | |||||||
All other investing activities | (1,739) | 3,576 | |||||||
Cash from (used for) investing activities – continuing operations | 6,507 | 8,578 | |||||||
Cash from (used for) investing activities – discontinued operations | (224) | (2,515) | |||||||
Cash from (used for) investing activities | 6,283 | 6,063 | |||||||
Cash flows – financing activities | |||||||||
Net increase (decrease) in borrowings (maturities of 90 days or less) | (1,765) | 243 | |||||||
Newly issued debt (maturities longer than 90 days) | 2,288 | 420 | |||||||
Repayments and other debt reductions (maturities longer than 90 days) | (17,274) | (18,215) | |||||||
Net dispositions (purchases) of GE shares for treasury | 0 | 0 | |||||||
Dividends paid to shareowners | (185) | (4,164) | |||||||
All other financing activities | (2,091) | (168) | |||||||
Cash from (used for) financing activities – continuing operations | (19,027) | (21,884) | |||||||
Cash from (used for) financing activities – discontinued operations | 0 | 1,905 | |||||||
Cash from (used for) financing activities | (19,027) | (19,979) | |||||||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | (51) | 749 | |||||||
Increase (decrease) in cash, cash equivalents and restricted cash | (12,400) | (11,603) | |||||||
Cash, cash equivalents and restricted cash at beginning of year | 25,902 | 39,301 | 39,301 | ||||||
Cash, cash equivalents and restricted cash at September 30 | 13,502 | 27,697 | 13,502 | 27,697 | 25,902 | ||||
Less cash, cash equivalents and restricted cash of discontinued operations at September 30 | 432 | 501 | 432 | 501 | |||||
Cash, cash equivalents and restricted cash of continuing operations at September 30 | $ 13,071 | [4] | $ 27,196 | $ 13,071 | [4] | $ 27,196 | $ 25,145 | [4] | |
[1] | Includes restricted cash of $454 million and $668 million at September 30, 2018 and December 31, 2017, respectively. | ||||||||
[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 common dividends paid to GE. | ||||||||
[4] | GE restricted cash was $380 million and $611 million at September 30, 2018 and December 31, 2017, respectively, and GE Capital restricted cash was $74 million and $57 million at September 30, 2018 and December 31, 2017, respectively. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. 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, 2017 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 GE 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. 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, 2017 . 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 Annual Report on Form 10-K for the year ended December 31, 2017 for the discussion of our significant accounting policies as well as the additional revenue accounting policy information provided in Note 9, reflective of our adoption of ASC 606. ACCOUNTING CHANGES On January 1, 2018, we adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers , and the related amendments (ASC 606), which supersedes most previous U.S. GAAP revenue guidance. We elected to adopt the new standard on a retrospective basis to ensure a consistent basis of presentation within our consolidated financial statements for all periods reported. In addition, we elected the practical expedient for contract modifications, which essentially means that the terms of the contract that existed at the beginning of the earliest period presented can be assumed to have been in place since the inception of the contract (i.e., not practical to separately evaluate the effects of all prior contract modifications). ASC 606 requires companies to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time based on when control of goods and services transfers to a customer. As a result of the adoption of the standard, we recorded significant changes in the timing of revenue recognition and in the classification between revenues and costs. The financial statement effect of the adoption was a decrease to our previously reported retained earnings as of January 1, 2016 of $4,240 million and a decrease to our previously reported revenues and earnings (loss) from continuing operations of $2,224 million and $2,668 million , respectively, for the year ended December 31, 2017 and $220 million and $1,182 million , respectively, for the year ended December 31, 2016. The effect on our statement of financial position was principally comprised of changes to our contract assets, inventories, deferred taxes, deferred income and progress collections balances resulting in an $8,317 million decrease to previously reported total assets as of December 31, 2017. As discussed in prior filings, some of the impacts of adopting the ASC 606 are: Long-Term Service Agreements - For our long-term service agreements, we will continue to recognize revenue over time using percentage of completion based on costs incurred relative to total expected costs. We will also continue to record cumulative effect adjustments resulting from changes to our estimated contract billings or costs (excluding those resulting from contract modifications as discussed below). Our accounting will be impacted by various changes in the new revenue standard including (1) accounting for contract modifications and their related impacts and (2) changes in the accounting scope and term of our contracts. • Modifications - Under the new revenue standard, contract modifications will generally be accounted for as if we entered into a new contract, resulting in prospective recognition of changes to our estimates of contract billings and costs. That is, cumulative effect adjustments will generally no longer be recognized in the period that modifications occur. There was limited guidance for accounting for contract modifications under prior U.S. GAAP. As a result, our previous method of accounting for contract modifications was developed with the objective of accounting for the nature of the contract modifications. Generally, contract modifications were accounted for as cumulative effect adjustments, which reflected an update to the contract margin for the impact of the modification (i.e., changes to estimates of future contract billings and costs); however, modifications that substantially changed the economics of the arrangement were effectively accounted for as a new contract. • Scope and term - The new revenue standard provides more prescriptive guidance on identifying the elements of long-term service type contracts that should be accounted for as separate performance obligations. Application of this guidance, which focuses on understanding the nature of the arrangement, including our customers' discretion in purchasing decisions, has resulted in changes to the scope of elements included in our accounting model for long-term service agreements. For example, significant equipment upgrades offered as part of our long-term service agreements will generally be accounted for as separate performance obligations under the new revenue standard. Also, the term of our contracts is now defined as the shorter of the stated term or the term not subject to customer termination without substantive penalty. Over this contract term, we estimate our revenues and related costs, including estimates of fixed and variable payments related to asset utilization and related costs to fulfill our performance obligations. Historically, our accounting for long-term contracts did not reflect an expectation that a contract would be terminated prior to the stated term, particularly when the probability of termination was considered remote. Under prior U.S. GAAP, while termination rights were considered, more emphasis was placed on expected outcomes (i.e., use of best estimates). For example, we used historical experience with similar types of contracts as well as other evidence (e.g., customer intent, economic compulsion and future plans for operating the asset) to determine the contract term for application of our accounting model. These changes to our long-term service agreement accounting have significantly impacted all of our industrial businesses except for Renewable Energy, Healthcare, and Lighting and were some of the drivers in the reduction of the related contract asset balance of $8,255 million as of December 31, 2017. While these contract asset balances have been reduced due to the accounting changes, the economics and cash impact of these contracts remain unchanged. Aviation Commercial Engines - For Aviation Commercial engines our previous method applied contract-specific estimated margin rates, which included the effect of estimated cost improvements over time, to costs incurred to determine the amount of revenue that should be recognized. The new revenue standard will result in a significant change from our previous long-term contract accounting model. While we will continue to recognize revenue at delivery, each engine is now accounted for as a separate performance obligation, reflecting the contractually stated price and manufacturing cost of each engine. The most significant effect of this change is on our new engine launches, where the cost of earlier production units is higher than the cost of later production units driven by expected cost improvements over the life of the engine program, which will generally result in lower earnings or increased losses on our early program engine deliveries to our customers. The effect of this change reduced the related contract asset balance by $1,755 million as of December 31, 2017. All Other Large Equipment - For the remainder of our equipment businesses, the new revenue standard’s emphasis on transfer of control rather than risks and rewards has resulted in an accelerated timing of revenue recognition versus our previous accounting for certain products. While this change impacts all our businesses, our Renewable Energy business was most significantly impacted on a year over year basis with certain of their products recognized at an earlier point in time compared to historical standards. Our policy under ASC 605 was to defer recognition until all risk had transferred to the customer, which was generally upon product installation or customer acceptance. For these equipment contracts, the customer has control of the equipment in advance of the related installation or acceptance event based on our evaluation of the indicators provided in ASC 606. Consistent with our industry peers, certain of our businesses’ products have transitioned either to a point in time or over time recognition based on the nature of the arrangement. This change in timing of revenue had an effect on inventory, contract assets and progress collections to reflect the transfer of control at an earlier point in time. Refer to our Form 8-K filed on April 13, 2018 for supplemental information on the effect of the adoption of ASC 606 to our financial statements. On January 1, 2018, we adopted ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The ASU requires the service cost component of the net periodic costs for pension and postretirement plans to be presented in the same line item in the statement of earnings as other employee-related compensation costs. The non-service related costs are now required to be presented separately from the service cost component. This change to the income statement has been reflected on a retrospective basis and had no effect on continuing or net income. The new standard also added guidance requiring entities to exclude these non-service related costs from capitalization in inventory or other internally-developed assets on a prospective basis, which is not expected to have a significant effect. On January 1, 2018 we adopted ASU No. 2016-18, Statement of Cash Flows: Restricted Cash . The ASU requires the changes in the total of cash and restricted cash to be presented in the statement of cash flows. In addition, when cash and restricted cash are presented on separate lines on the balance sheet, an entity is required to reconcile the totals in the statement of cash flows to the related line items in the balance sheet. While not a direct effect of the adoption of the standard, to simplify the reconciliation of the statement of cash flows to the cash balances presented in our statement of financial position, we have elected to present cash and restricted cash as a single line on the balance sheet, which resulted in an increase of $668 million and $654 million to our previously reported December 31, 2017 and December 31, 2016 cash balances, respectively. The change to our cash balances and cash flows has been reflected on a retrospective basis for all periods presented. On January 1, 2018, we adopted ASU No. 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory . The ASU eliminates the deferral of the tax effects of intra-entity asset transfers other than inventory and was required to be adopted on a modified retrospective basis. As a result, the tax expense from the intercompany sale of assets, other than inventory, and associated changes to deferred taxes will be recognized when the sale occurs even though the pre-tax effects of the transaction have not been recognized as they are eliminated in consolidation. This change to our income tax provision has been reflected as a $464 million cumulative catch up adjustment to increase retained earnings as of January 1, 2018 and is not reflected in periods prior to this date. On January 1, 2018, we adopted ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments . The ASU is required to be reflected on a retrospective basis and provides guidance on the classification of certain cash receipts and cash payments, including requiring cash payments for debt prepayment or debt extinguishment costs be classified as financing activities and payments from a beneficial interest in securitization transactions be classified as investing activities. As part of the adoption, we reclassified $553 million of cash receipts from our beneficial interest in securitized trade receivables within our consolidated statement of cash flows from cash inflows from operating activities to cash inflows from investing activities for the year ended December 31, 2017 (no effect to periods prior to 2017). Our only beneficial interest in securitized trade receivables is the deferred purchase price ("DPP") created by transactions between the Company and the third parties that purchase trade receivables from GE Capital under the Receivables Facility. In our accounting under the new guidance, we determined the non-cash activities and cash flows associated with the DPP in accordance with the contractual terms of the Receivables Facility when computing the amount of DPP that we receive, in part, as consideration for the sale of receivables. In the third quarter of 2018 we learned of an interpretation of the ASU under which there may be a requirement to develop a computation of both non-cash activities and cash flows associated with the DPP that is different from the contractual computation of the DPP we have used in our accounting to date. We are currently evaluating whether a change in our accounting is required that would result in a reclassification between previously reported consolidated cash flows from operating and investing activities and, if so, whether the change would be material. We expect to complete this evaluation in the fourth quarter of 2018, and any revision of our presentation to reflect the reclassification between operating and investing cash flows and our disclosures in Note 4 in subsequent filings would be made on a retrospective basis consistent with the requirements of the adoption of a new accounting policy. The adoption of the ASU did not have an effect on our GE Industrial cash flows, nor do we expect the fourth quarter evaluation to have an effect on our GE Industrial cash flows. On January 1, 2018 we adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU provides guidance related to the recognition and measurement of financial assets and financial liabilities with changes primarily affecting equity investments and disclosure of financial instruments. Under the new guidance, equity investments with readily determinable fair value, except those accounted for under the equity method of accounting, will be measured at fair value with changes in fair value recognized in earnings. The adoption had an insignificant impact to retained earnings and other comprehensive income. Effective January 1, 2018, we voluntarily changed the cost method of the GE U.S. inventories that were previously measured on a last-in, first-out (LIFO) basis to first-in, first-out (FIFO) basis. We believe the FIFO method is a preferable measure for our inventories as it is expected to better reflect the current value of inventory reported in the consolidated statement of financial position, improve the matching of costs of goods sold with related revenue, and provide for greater consistency and uniformity across our operations with respect to the method of inventory valuation. While this change will also require us to make a conforming change for U.S. income tax purposes, all existing GE businesses previously using LIFO are expected to be in a deflationary cost environment due to the manufacturing life cycle of the products and continuous reduction in the manufacturing costs due to better efficiencies, which would significantly decrease the tax benefit that LIFO would otherwise provide. Prior to the change and as reported in our 2017 10-K, LIFO was used for approximately 32% of GE inventories as of December 31, 2017. As required by U.S. GAAP, we have reflected this change in accounting principle on a retrospective basis resulting in changes to the historical periods presented. The retrospective application of the change resulted in a decrease to our January 1, 2016 retained earnings of $105 million and a decrease to our net loss from continuing operations by $28 million , $56 million and $124 million for the three months ended September 30, 2017, nine months ended September 30, 2017 and the year ended December 31, 2017, respectively, and a decrease to our net earnings from continuing operations by $147 million for the year ended December 31, 2016. This change did not affect our previously reported cash flows from operating, investing or financing activities. |
BUSINESSES HELD FOR SALE AND DI
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS | NOTE 2. BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE In the third quarter of 2018, we signed an agreement to sell Energy Financial Service’s (EFS) debt origination business within our Capital segment, to Starwood Property Trust, Inc. The sale was completed on September 19, 2018 for proceeds of approximately $2,000 million and we recognized a pre-tax gain of approximately $285 million . On November 13, 2017, the Company announced its intention to exit approximately $20 billion of assets over the next one to two years . Since this announcement, GE has classified various businesses across our Power, Lighting, Aviation and Healthcare segments as held for sale. As these businesses met the criteria for held for sale, we presented these businesses as a single asset and liability in our financial statements and recognized a valuation allowance, if necessary, to recognize the net carrying amount at the lower of cost or fair value, less cost to sell. To date, we have recorded a cumulative pre-tax loss on the planned disposals of $1,598 million ( $1,489 million after-tax), of which $565 million was recorded in 2018 . Through the third quarter of 2018, we closed certain of these transactions within our Power, Healthcare, and Lighting segments for total net proceeds of $ 3,439 million, recognized a pre-tax gain of $ 458 million in the caption “Other income” in our consolidated Statement of Earnings (Loss) and liquidated $546 million of our previously recorded valuation allowance. These transactions are subject to customary working capital and other post-close adjustments. While we announced the strategic portfolio actions for Transportation, GE Healthcare and BHGE, these businesses have not met the accounting criteria for held for sale classification. That classification will depend on the nature and timing of the respective transactions. FINANCIAL INFORMATION FOR ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE (In millions) September 30, 2018 December 31, 2017 Assets Current receivables(a) $ 534 $ 612 Inventories 823 931 Property, plant, and equipment – net 779 931 Goodwill 2,238 1,619 Other intangible assets – net 356 403 Contract assets 736 619 Valuation allowance on disposal group classified as held for sale (b) (962 ) (1,000 ) Other assets 83 49 Assets of businesses held for sale $ 4,588 $ 4,164 Liabilities Accounts payable(a) $ 543 $ 602 Progress collections and deferred income 294 179 Non-current compensation and benefits 229 162 Other liabilities 294 305 Liabilities of businesses held for sale $ 1,360 $ 1,248 (a) Included transactions in our industrial businesses that were made on an arms-length basis with GE Capital, including GE current receivables sold to GE Capital of $ 329 million and $ 366 million at September 30, 2018 and December 31, 2017 respectively, and GE Capital services for material procurement of $39 million at September 30, 2018. These intercompany balances, included within our held for sale businesses, are reported in the GE and GE Capital columns of our financial statements, and are eliminated in deriving our consolidated financial statements. (b) We adjusted the carrying value to fair value less cost to sell for certain held for sale businesses. DISCONTINUED OPERATIONS Discontinued operations primarily relate to our financial services businesses . Discontinued operations primarily comprise residual assets and liabilities related to our exited U.S. mortgage business (WMC) , our mortgage portfolio in Poland, and trailing liabilities associated with the sale of our GE Capital businesses as a result of the GE Capital Exit Plan (our plan announced in 2015 to reduce the size of our financial services businesses). Results of operations, financial position and cash flows for these businesses are separately reported as discontinued operations for all periods presented. See Note 19 for further information about indemnifications and further discussion on WMC. FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Operations Total revenues and other income (loss) $ 152 $ 35 $ (1,316 ) $ 123 Earnings (loss) from discontinued operations before income taxes $ 61 $ (191 ) $ (1,669 ) $ (603 ) Benefit (provision) for income taxes(a) (22 ) 71 32 198 Earnings (loss) from discontinued operations, net of taxes $ 39 $ (120 ) $ (1,637 ) $ (404 ) Disposal Gain (loss) on disposal before income taxes $ — $ 22 $ 4 $ 3 Benefit (provision) for income taxes(a) — (8 ) (1 ) (89 ) Gain (loss) on disposal, net of taxes $ — $ 14 $ 3 $ (86 ) Earnings (loss) from discontinued operations, net of taxes(b)(c) $ 39 $ (106 ) $ (1,634 ) $ (490 ) (a) GE Capital's total tax benefit (provision) for discontinued operations and disposals included current tax benefit (provision) of $(63) million for both the three months ended September 30, 2018 and 2017 , and $60 million and $(386) million for the nine months ended September 30, 2018 and 2017 , respectively, including current U.S. Federal tax benefit (provision) of $(18) million and $1 million for the three months ended September 30, 2018 and 2017 , respectively and $43 million and $(518) million for the nine months ended September 30, 2018 and 2017 , respectively. The deferred tax benefit (provision) was $41 million and $126 million for the three months ended September 30, 2018 and 2017 , respectively and $(29) million and $495 million for the nine months ended September 30, 2018 and 2017, 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 $61 million and $(168) million for the three months ended September 30, 2018 and 2017 , respectively, and $(1,665) million and $(606) million for the nine months ended September 30, 2018 and 2017 , respectively. (In millions) September 30, 2018 December 31, 2017 Assets Cash, cash equivalents and restricted cash $ 432 $ 757 Investment securities 240 647 Deferred income taxes 934 951 Financing receivables held for sale 2,916 3,215 Other assets 194 342 Assets of discontinued operations $ 4,716 $ 5,912 Liabilities Accounts payable 46 51 Borrowings 1 1 Other liabilities 1,955 654 Liabilities of discontinued operations $ 2,002 $ 706 |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | NOTE 3. 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. September 30, 2018 December 31, 2017 (In millions) Amortized Gross Gross Estimated Amortized Gross Gross Estimated Debt U.S. corporate $ 21,467 $ 2,363 $ (255 ) $ 23,575 $ 20,104 $ 3,775 $ (35 ) $ 23,843 Non-U.S. corporate 2,100 60 (41 ) 2,120 5,455 86 (13 ) 5,528 State and municipal 3,411 329 (68 ) 3,672 3,775 534 (40 ) 4,269 Mortgage and asset-backed 3,298 45 (63 ) 3,280 2,820 81 (23 ) 2,878 Government and agencies 1,602 56 (43 ) 1,615 1,927 75 (2 ) 2,000 Equity (b) 499 — — 499 166 12 — 178 Total $ 32,378 $ 2,853 $ (469 ) $ 34,761 $ 34,246 $ 4,564 $ (114 ) $ 38,696 (a) Includes $874 million and $569 million of investment securities held by GE at September 30, 2018 and December 31, 2017, respectively, of which $464 million and $141 million are equity securities with readily determinable fair value. (b) These securities have readily determinable fair values and subsequent to the adoption of ASU 2016-01 on January 1, 2018, changes in fair value are recorded to earnings. Net unrealized gains (losses) recorded to earnings related to these securities were $(60) million and $12 million for the three months ended and $204 million and $41 million for the nine months ended September 30, 2018 and 2017, respectively. Investments with a fair value of $4,176 million and $4,413 million were classified within Level 3 (significant inputs to the valuation model are unobservable) at September 30, 2018 and December 31, 2017, respectively. The remaining investments are substantially all classified within Level 2 (determined based on significant observable inputs). During the nine months ended September 30, 2018 and 2017, there were no significant transfers into or out of Level 3 . The estimated fair value and gross unrealized losses of available-for-sale debt securities in a loss position for less than 12 months were $8,872 million and $(261) million and $3,093 million and $(23) million , respectively, at September 30, 2018 and December 31, 2017. The estimated fair value and gross unrealized losses of available-for-sale debt securities in a loss position for 12 months or more were $2,457 million and $(208) million and $4,949 million and $(91) million , respectively, at September 30, 2018 and December 31, 2017. Unrealized losses are not indicative of the amount of credit loss that would be recognized and at September 30, 2018 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. Total pre-tax, other-than-temporary impairments on debt securities recognized in earnings were an insignificant amount for the three and nine months ended September 30, 2018 and 2017. 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 $ 942 $ 948 After one year through five years 2,659 2,740 After five years through ten years 6,169 6,580 After ten years 18,871 20,785 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 debt securities were $10 million and $32 million , and gross realized losses were $(32) million and $(3) million in the three months ended September 30, 2018 and 2017, respectively. Gross realized gains on available-for-sale debt securities were $32 million and $141 million , and gross realized losses were $(35) million and $(7) million in the nine months ended September 30, 2018 and 2017, respectively. Proceeds from investment securities sales and early redemptions by issuers totaled $1,483 million and $659 million in the three months ended and $2,189 million and $2,433 million in the nine months ended September 30, 2018 and 2017, respectively. In addition to equity securities with readily determinable fair value, we hold $571 million of equity securities without readily determinable fair value at September 30, 2018 that are classified within "All other assets" in our consolidated Statement of Financial Position and are originally recorded at cost and adjusted for observable price changes for identical or similar instruments less any impairment. We recorded fair value increases of $6 million and $49 million to those securities based on observable transactions and impairments of $(22) million and $(37) million for the three and nine months ended September 30, 2018, respectively. |
CURRENT RECEIVABLES
CURRENT RECEIVABLES | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
CURRENT RECEIVABLES | NOTE 4. CURRENT RECEIVABLES Consolidated(a)(b) GE(c) (In millions) September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Current receivables $ 21,351 $ 25,282 $ 15,801 $ 15,693 Allowance for losses (936 ) (1,073 ) (925 ) (1,055 ) Total $ 20,414 $ 24,209 $ 14,877 $ 14,638 (a) Included GE industrial customer receivables sold to a GE Capital affiliate and recorded on GE Capital’s balance sheet of $ 6,404 million and $ 10,370 million at September 30, 2018 and December 31, 2017 , respectively. The consolidated total included a deferred purchase price receivable of $ 417 million and $ 388 million at September 30, 2018 and December 31, 2017 , respectively, related to our Receivables Facility (described below). (b) In order to manage 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 $ 3,865 million and $ 2,541 million at September 30, 2018 and December 31, 2017 , respectively. Of these balances, $ 2,760 million and $ 1,621 million was sold by GE to GE Capital prior to the sale to third parties at September 30, 2018 and December 31, 2017 , respectively. At September 30, 2018 and December 31, 2017 , our maximum exposure to loss under the limited recourse arrangements is $ 17 million and $ 90 million, respectively. (c) GE current receivables balances at September 30, 2018 and December 31, 2017 , before allowance for losses, included $ 10,535 million and $ 10,452 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 $ 3,750 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 nine months ended September 30, 2018 , GE Industrial sold current receivables of $ 16,705 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 $ 16,831 million on previously sold current receivables owed to the purchasing entities. The purchasing entities invested $16,452 million including $14,874 million of collections to purchase newly originated current receivables from the Company. In addition, the purchase of additional receivables by the purchasing entities increased their DPP obligation to the Company by $152 million and they paid $ 123 million to reduce their DPP obligation. During the nine months ended September 30, 2018 , the Company recorded a loss of $ 106 million on sales of current receivables to the third party purchasers. At September 30, 2018 and December 31, 2017 , GE Capital, under the Receivables Facility, serviced $ 3,096 million and $3,222 million of transferred receivables that remain outstanding, respectively. During the nine months ended September 30, 2018 , the purchasers paid GE Capital servicing fees of $25 million. 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 investing activities in the GE Capital and consolidated columns 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 | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5. INVENTORIES (In millions) September 30, 2018 December 31, 2017 Raw materials and work in process $ 11,194 $ 10,131 Finished goods 9,231 8,847 Unbilled shipments 217 441 Total Inventories $ 20,642 $ 19,419 |
GE CAPITAL FINANCING RECEIVABLE
GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES | NOTE 6. GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES FINANCING RECEIVABLES, NET (In millions) September 30, 2018 December 31, 2017 Loans, net of deferred income $ 12,764 $ 17,404 Investment in financing leases, net of deferred income 2,933 4,614 15,697 22,018 Allowance for losses (34 ) (51 ) Financing receivables – net $ 15,663 $ 21,967 We manage our GE Capital financing receivables portfolio using delinquency and nonaccrual data as key performance indicators. At September 30, 2018, 3.0% and 2.1% of financing receivables were over 90 days past due and on nonaccrual, respectively, with the vast majority of nonaccrual financing receivables secured by collateral. At December 31, 2017, 0.6% and 1.1% of financing receivables were over 90 days past due and on nonaccrual, respectively. The GE Capital financing receivables portfolio includes $1,702 million and $4,148 million of current receivables at September 30, 2018 and December 31, 2017, respectively, which are purchased from GE with full or limited recourse. These receivables are classified within current receivables at a consolidated level and are excluded from the calculation of GE Capital delinquency and nonaccrual data. The portfolio also includes $1,071 million and $1,141 million of financing receivables that are guaranteed by GE, of which $249 million and $239 million of these loans are on nonaccrual at a GE consolidated level at September 30, 2018 and December 31, 2017, respectively. Additional allowance for loan losses of $160 million and $161 million are recorded at GE and on a consolidated level for these guaranteed nonaccrual loans at September 30, 2018 and December 31, 2017, respectively. In 2018, in connection with a strategic shift to make GE Capital smaller and more focused, we classified $1,646 million of Healthcare Equipment Finance financing receivables as held for sale. The related held for sale balance at September 30, 2018 is $1,628 million . Write-offs on financing receivables of $8 million were recorded for the nine months ended September 30, 2018, to reduce the carrying value of these financing receivables to the lower of cost or fair value, less cost to sell. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 7. PROPERTY, PLANT AND EQUIPMENT (In millions) September 30, 2018 December 31, 2017 Original cost $ 87,516 $ 89,607 Less accumulated depreciation and amortization (36,878 ) (35,733 ) Property, plant and equipment – net $ 50,638 $ 53,874 Consolidated depreciation and amortization on property, plant and equipment was $1,527 million and $1,397 million in the three months ended September 30, 2018 and 2017 , respectively and $4,222 million and $3,715 million in the nine months ended September 30, 2018 and 2017, respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 8. GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL CHANGES IN GOODWILL BALANCES (In millions) Balance at Acquisitions Impairments Dispositions, Balance at Power $ 25,269 $ — $ (21,147 ) $ (2,255 ) $ 1,868 Renewable Energy 4,093 — — 13 4,106 Aviation 10,008 — — (38 ) 9,970 Oil & Gas 23,943 16 — 688 24,647 Healthcare 17,306 — — (40 ) 17,266 Transportation 902 — — (17 ) 885 Lighting(a) — — — — — Capital 984 — — — 984 Corporate 1,463 — (827 ) 15 651 Total $ 83,968 $ 16 $ (21,973 ) $ (1,634 ) $ 60,377 (a) Substantial majority of Lighting segment classified as held for sale in the fourth quarter of 2017. Goodwill balances decreased primarily as a result of impairments (discussed below), the reclassification of the Distributed Power business within our Power segment to Assets of businesses held for sale and currency effects of a stronger U.S. dollar, partially offset by adjustments to the allocation of purchase price associated with our acquisitions of Baker Hughes and LM Wind Power. We test goodwill for impairment annually in the third quarter of each year using data as of July 1 of that year. The impairment test consists of two steps: in step one, the carrying value of the reporting unit is compared with its fair value; in step two, which is applied if the carrying value is more than its fair value, the amount of goodwill impairment, if any, is derived by deducting the fair value of the reporting unit’s assets and liabilities from the fair value of its equity, and comparing that amount with the carrying amount of goodwill. We determined fair values for each of the reporting units using the market approach, when available and appropriate, or the income approach, or a combination of both. We assess the valuation methodology based upon the relevance and availability of the data at the time we perform the valuation. If multiple valuation methodologies are used, the results are weighted appropriately. Valuations using the market approach are derived from metrics of publicly traded companies or historically completed transactions of comparable businesses. The selection of comparable businesses is based on the markets in which the reporting units operate giving consideration to risk profiles, size, geography, and diversity of products and services. A market approach is limited to reporting units for which there are publicly traded companies that have characteristics similar to our businesses. Under the income approach, fair value is determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. We use our internal forecasts to estimate future cash flows and include an estimate of long-term future growth rates based on our most recent views of the long-term outlook for each business. Actual results may differ from those assumed in our forecasts. We derive our discount rates using a capital asset pricing model and by analyzing published rates for industries relevant to our reporting units to estimate the cost of equity financing. We use discount rates that are commensurate with the risks and uncertainty inherent in the respective businesses and in our internally developed forecasts. Discount rates used in our reporting unit valuations ranged from 9.5% to 17.0% . Based on the results of our step one testing, the fair values of each of our reporting units exceeded their carrying values except for the Power Generation and Grid Solutions reporting units, within our Power segment. The majority of the goodwill in our Power segment was recognized as a result of the Alstom acquisition at which time approximately $15,800 million of goodwill was attributed to our Power Generation and Grid Solutions reporting units. As previously disclosed, the Power market as well as its operating environment continues to be challenging. Our outlook for Power has continued to deteriorate driven by the significant overcapacity in the industry, lower market penetration, uncertain timing of deal closures due to deal financing, and the complexities of working in emerging markets. In addition, our near-term earnings outlook has been negatively impacted by project execution and our own underlying operational challenges. Finally, market factors such as increasing energy efficiency and renewable energy penetration continue to impact our view of long-term demand. These conditions have resulted in downward revisions of our forecasts on current and future projected earnings and cash flows at these businesses. Therefore, we conducted step two of the goodwill impairment test for the Power Generation and Grid Solutions reporting units. Step two requires that we allocate the fair value of the reporting unit to identifiable assets and liabilities of the reporting unit, including previously unrecognized intangible assets. Any residual fair value after this allocation is compared to the goodwill balance and any excess goodwill is charged to expense. In performing the second step, we identified significant unrecognized intangible assets primarily related to customer relationships, backlog, technology, and trade name. The value of these unrecognized intangible assets is driven by high customer retention rates in our Power business, our contractual backlog, the value of internally created technology, and the GE trade name. The combination of these unrecognized intangibles, adjustments to the carrying value of other assets and liabilities, and reduced reporting unit fair values calculated in step one, resulted in an implied fair value of goodwill substantially below the carrying value of goodwill for the Power Generation and Grid Solutions reporting units. Therefore, in the third quarter, we recorded our best estimate of a non-cash impairment loss of $21,973 million . The impairment loss included $827 million of goodwill recorded at Corporate associated with our Digital acquisitions that was previously allocated to our Power Generation and Grid Solutions reporting units. We recorded the estimated impairment losses in the caption "Goodwill impairment" in our consolidated Statement of Earnings (Loss). As a result of ongoing updates to our long-range forecast and the complexity of valuing intangible assets in the second step of the impairment test, the Company has not yet completed its analysis. We will recognize any differences to this estimate in the fourth quarter when we finalize the step two impairment test. After the impairment loss, there is no remaining goodwill associated with our Power Generation reporting unit and $1,653 million related to our Grid Solutions reporting unit at September 30, 2018 . In the second quarter of 2018, we classified a significant portion of Healthcare Equipment Finance’s financing receivables as assets held for sale. Upon disposition of these assets, we expect to recognize a goodwill impairment for a substantial portion of the $111 million of goodwill in our Industrial Finance reporting unit. This charge will be offset against the expected gain on sale of the financing receivables. As we have previously announced, we plan an orderly separation of our ownership interest in BHGE over time. While the fair value of each of the reporting units in our Oil & Gas segment are in excess of their carrying values, our basis in BHGE’s shares currently exceeds its publicly traded share price. Depending on the form and timing of our separation, as well as BHGE’s stock price at the time and the extent of our remaining interest in BHGE, if any, we may recognize a loss either in shareholders equity or the income statement, or both, and such amounts could be material. In 2017, we recognized a total non-cash goodwill impairment loss in our Power Conversion reporting unit of $1,164 million , of which $947 million was recorded during the third quarter of 2017. After the impairment loss, there was no goodwill in our Power Conversion reporting unit. Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. It is reasonably possible that the judgments and estimates described above could change in future periods. OTHER INTANGIBLE ASSETS OTHER INTANGIBLE ASSETS - NET (In millions) September 30, 2018 December 31, 2017 Intangible assets subject to amortization $ 16,616 $ 18,056 Indefinite-lived intangible assets(a) 2,223 2,217 Total $ 18,838 $ 20,273 (a) Indefinite-lived intangible assets principally comprise trademarks/trade names and in-process research and development. INTANGIBLE ASSETS SUBJECT TO AMORTIZATION September 30, 2018 December 31, 2017 (In millions) Gross carrying amount Accumulated amortization Net Gross carrying amount Accumulated amortization Net Customer-related(a) $ 10,370 $ (3,648 ) $ 6,724 $ 10,614 $ (3,095 ) $ 7,521 Patents and technology 10,651 (4,515 ) 6,136 10,271 (3,899 ) 6,372 Capitalized software 8,189 (5,271 ) 2,919 8,064 (4,974 ) 3,089 Trademarks 1,150 (514 ) 636 1,280 (421 ) 859 Lease valuations 157 (86 ) 70 170 (80 ) 89 All other 231 (100 ) 132 218 (92 ) 125 Total $ 30,748 $ (14,134 ) $ 16,616 $ 30,618 $ (12,561 ) $ 18,056 (a) Balance includes payments made to our customers, primarily within our Aviation business. Intangible assets subject to amortization decreased by $ 1,440 million in the nine months ended September 30, 2018 , primarily as a result of amortization, impairments, currency effects of a stronger U.S. dollar and the reclassification of the Distributed Power business to Assets of businesses held for sale, partially offset by the acquisition of a technology intangible asset o f $632 million a t our Aviation business and the capitalization of new software across several business platforms . Due to the continued decline in the Power industry, we determined that certain intangible assets, primarily technology and customer relationships, were impaired. Therefore, included within amortization expense for the three and nine months ended September 30, 2018, was a $428 million non-cash impairment charge recorded by our Power Conversion business within our Power segment. This charge was recorded within the "Selling, general and administrative expense" caption in our consolidated Statement of Earnings (Loss). GE amortization expense related to intangible assets subject to amortization was $ 944 million and $ 613 million in the three months ended September 30, 2018 and 2017 , respectively and $2,085 million and $1,662 million for the nine months ended September 30, 2018 and 2017, respectively. GE Capital amortization expense related to intangible assets subject to amortization was $ 12 million and $ 16 million in the three months ended September 30, 2018 and 2017 , respectively and $ 42 million and $ 50 million for the nine months ended September 30, 2018 and 2017, respectively. |
REVENUES
REVENUES | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | NOTE 9. REVENUES REVENUES FROM THE SALE OF EQUIPMENT PERFORMANCE OBLIGATIONS SATISFIED OVER TIME We recognize revenue on agreements for the sale of customized goods including power generation equipment, larger oil drilling equipment projects, military development contracts, locomotive units, and long-term construction projects on an over time basis. We recognize revenue using percentage of completion based on costs incurred relative to total expected costs. Our estimate of costs to be incurred to fulfill our promise to a customer is based on our history of manufacturing or constructing similar assets for customers and is updated routinely to reflect changes in quantity or pricing of the inputs. We recognize revenue as we customize the customer's equipment during the manufacturing or integration process and obtain right to payment for work performed. We provide for potential losses on any of these agreements when it is probable that we will incur the loss. Our billing terms for these over-time contracts vary, but are generally based on achieving specified milestones. The differences between the timing of our revenue recognized (based on costs incurred) and customer billings (based on contractual terms) results in changes to our contract asset or contract liability positions (see Note 10 for further information). PERFORMANCE OBLIGATIONS SATISFIED AT A POINT IN TIME We recognize revenue on agreements for non-customized equipment including commercial aircraft engines, healthcare equipment, resource extraction equipment and other goods we manufacture on a standardized basis for sale to the market at a point in time. We recognize revenue at the point in time that the customer obtains control of the good, which is generally no earlier than when the customer has physical possession of the product. We use proof of delivery for certain large equipment with more complex logistics, whereas the delivery of other equipment is estimated based on historical averages of in-transit periods (i.e., time between shipment and delivery). In situations where arrangements include customer acceptance provisions based on seller or customer-specified objective criteria, we recognize revenue when we have concluded that the customer has control of the goods and that acceptance is likely to occur. We generally do not provide for anticipated losses on point in time transactions prior to transferring control of the equipment to the customer. Our billing terms for these point in time equipment contracts vary and generally coincide with delivery to the customer; however, within certain businesses, we receive progress payments from customers for large equipment purchases, which is generally to reserve production slots. REVENUES FROM THE SALE OF SERVICES Consistent with our discussion in the MD&A and the way we manage our businesses, we refer to sales under product services agreements and sales of both goods (such as spare parts and equipment upgrades) and related services (such as monitoring, maintenance and repairs) as sales of “services,” which is an important part of our operations. PERFORMANCE OBLIGATIONS SATISFIED OVER TIME We enter into long-term product service agreements with our customers primarily within our Aviation, Power, Oil & Gas and Transportation segments. These agreements require us to provide preventative maintenance, overhauls, and standby "warranty-type" services that include certain levels of assurance regarding asset performance and uptime throughout the contract periods, which generally range from 5 to 25 years . We account for items that are integral to the maintenance of the equipment as part of our service related performance obligation, unless the customer has a substantive right to make a separate purchasing decision (e.g., equipment upgrade). We recognize revenue as we perform under the arrangements using percentage of completion based on costs incurred relative to total expected costs. Throughout the life of a contract, this measure of progress captures the nature, timing and extent of our underlying performance activities as our stand-ready services often fluctuate between routine inspections and maintenance, unscheduled service events and major overhauls at pre-determined usage intervals. Contract modifications that extend or revise contract terms are not uncommon and generally result in our recognizing the impact of the revised terms prospectively over the remaining life of the modified contract (i.e., effectively like a new contract). Our billing terms for these arrangements are generally based on the utilization of the asset (e.g., per hour of usage) or upon the occurrence of a major maintenance event within the contract, such as an overhaul. The differences between the timing of our revenue recognized (based on costs incurred) and customer billings (based on contractual terms) results in changes to our contract asset or contract liability positions (see Note 10 for further information). Changes in customer utilization can influence the timing and extent of overhauls and other service events over the life of the contract. As a result, the revenue recognized each period is dependent on our estimate of how customers will utilize their assets over the term of the agreement. We generally use a combination of both historical utilization trends as well as forward-looking information such as market conditions and potential asset retirements in developing our revenue estimates. This estimate of customer utilization will impact both the total contract billings and costs to satisfy our obligation to maintain the equipment. In developing our cost estimates, we utilize a combination of our historical cost experience and expected cost improvements. Cost improvements are generally only included in future cost estimates after savings have been observed in actual results or proven to be effective through an extensive regulatory engineering approval process. We also enter into long-term product services agreements in our Healthcare and Renewable Energy segments. Revenues are recognized for these arrangements on a straight line basis consistent with the nature, timing and extent of our services, which primarily relate to routine maintenance and as needed product repairs. Our billing terms for these contracts vary, but we generally invoice periodically as services are provided. PERFORMANCE OBLIGATIONS SATISFIED AT A POINT IN TIME We sell certain tangible products, largely spare equipment, through our services businesses. We recognize revenues and bill our customers for this equipment at the point in time that the customer obtains control of the good, which is at the point in time we deliver the spare part to the customer. DISAGGREGATED REVENUES EQUIPMENT & SERVICES REVENUES(a) Three months ended September 30 (In millions) 2018 2017 Equipment Revenues Services Revenues Total Revenues Equipment Revenues Services Revenues Total Revenues Power $ 2,299 $ 3,441 $ 5,739 $ 4,468 $ 4,059 $ 8,527 Renewable Energy 2,448 425 2,873 1,957 550 2,507 Aviation 2,834 4,646 7,480 2,425 4,270 6,696 Oil & Gas 2,221 3,449 5,670 2,168 3,143 5,311 Healthcare 2,700 2,006 4,707 2,648 2,062 4,710 Transportation 249 682 932 364 585 949 Lighting 367 18 385 454 18 472 Total Industrial Segment Revenues $ 13,117 $ 14,668 $ 27,785 $ 14,484 $ 14,687 $ 29,171 EQUIPMENT & SERVICES REVENUES(a) Nine months ended September 30 (In millions) 2018 2017 Equipment Revenues Services Revenues Total Revenues Equipment Revenues Services Revenues Total Revenues Power $ 9,336 $ 11,205 $ 20,540 $ 13,282 $ 12,586 $ 25,868 Renewable Energy 4,754 1,418 6,172 5,385 1,201 6,587 Aviation 8,281 13,830 22,111 7,375 12,628 20,003 Oil & Gas 6,638 9,971 16,609 4,732 6,662 11,394 Healthcare 8,119 6,268 14,387 7,605 6,097 13,703 Transportation 820 1,925 2,746 1,373 1,633 3,006 Lighting 1,227 45 1,272 1,361 46 1,407 Total Industrial Segment Revenues $ 39,175 $ 44,662 $ 83,837 $ 41,112 $ 40,854 $ 81,967 (a) Revenues classification consistent with our MD&A defined Services revenue SUB-SEGMENT REVENUES Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Power Gas Power Systems $ 961 $ 1,965 $ 3,897 $ 6,175 Power Services 2,727 2,901 8,737 9,101 Steam Power Systems 425 577 1,413 1,504 Energy Connections 1,486 2,386 6,005 7,072 Other 141 697 489 2,015 Power Revenues $ 5,739 $ 8,527 $ 20,540 $ 25,868 Renewable Energy Onshore Wind $ 2,558 $ 2,187 $ 5,153 $ 5,794 Hydro 197 258 607 641 Offshore Wind 118 62 412 151 Renewable Energy Revenues $ 2,873 $ 2,507 $ 6,172 $ 6,587 Aviation Commercial Engines & Services $ 5,636 $ 4,848 $ 16,443 $ 14,737 Military 898 1,023 2,942 2,891 Systems & Other 946 824 2,726 2,375 Aviation Revenues $ 7,480 $ 6,696 $ 22,111 $ 20,003 Oil & Gas Turbomachinery & Process Solutions (TPS) $ 1,393 $ 1,422 $ 4,231 $ 4,657 Oilfield Services (OFS) 2,993 2,661 8,554 3,101 Oilfield Equipment (OFE) 631 613 1,912 2,011 Digital Solutions 653 615 1,912 1,625 Oil & Gas Revenues $ 5,670 $ 5,311 $ 16,609 $ 11,394 Healthcare Healthcare Systems $ 3,417 $ 3,365 $ 10,241 $ 9,670 Life Sciences 1,140 1,099 3,509 3,273 Healthcare Digital 149 246 636 760 Healthcare Revenues $ 4,707 $ 4,710 $ 14,387 $ 13,703 Transportation Locomotives $ 133 $ 268 $ 481 $ 1,145 Services 564 489 1,600 1,381 Mining 139 106 392 242 Other 96 86 273 239 Transportation Revenues $ 932 $ 949 $ 2,746 $ 3,006 Lighting Current $ 213 $ 259 $ 697 $ 745 GE Lighting 172 213 575 662 Lighting Revenues $ 385 $ 472 $ 1,272 $ 1,407 Total Industrial Segment Revenues $ 27,785 $ 29,171 $ 83,837 $ 81,967 Capital Revenues (a) 2,473 2,397 7,075 7,525 Corporate items and eliminations (685 ) (907 ) (2,575 ) (2,851 ) Consolidated Revenues (a) $ 29,573 $ 30,662 $ 88,337 $ 86,640 (a) Includes $2,425 million and $2,342 million for the three months ended September 30, 2018 and 2017, respectively, and $6,903 million and $7,346 million for the nine months ended September 30, 2018 and 2017, respectively, of revenues at GE Capital outside of the scope of ASC 606. REMAINING PERFORMANCE OBLIGATION As of September 30, 2018, the aggregate amount of the contracted revenues allocated to our unsatisfied (or partially unsatisfied) performance obligations was $249,154 million . We expect to recognize revenue as we satisfy our remaining performance obligations as follows: • Equipment - total remaining performance obligation of $51,553 million of which 52% , 72% and 93% is expected to be satisfied within 1 , 2 and 5 years , respectively, and the remaining thereafter. • Service - total remaining performance obligation of $197,602 million of which 17% , 52% , 75% and 86% is expected to be recognized within 1 , 5 , 10 and 15 years , respectively, and the remaining thereafter. • Contract modifications could affect both the timing to complete as well as the amount to be received as we fulfill the related remaining performance obligations. |
CONTRACT & OTHER DEFERRED ASSET
CONTRACT & OTHER DEFERRED ASSETS AND PROGRESS COLLECTIONS & DEFERRED INCOME | 9 Months Ended |
Sep. 30, 2018 | |
Contractors [Abstract] | |
CONTRACT & OTHER DEFERRED ASSETS AND PROGRESS COLLECTIONS & DEFERRED INCOME | NOTE 10. CONTRACT & OTHER DEFERRED ASSETS AND PROGRESS COLLECTIONS & DEFERRED INCOME September 30, 2018 (In millions) Power Aviation Oil & Gas Renewable Energy Transportation Other(a) Total GE Revenues in excess of billings Long-term product service agreements(b) $ 3,828 $ 2,295 $ 540 $ — $ 526 $ — $ 7,190 Equipment contract revenues(c) 4,276 444 1,124 297 207 543 6,890 Total contract assets 8,104 2,739 1,664 297 733 543 14,080 Deferred inventory costs(d) 905 698 251 1,277 39 345 3,515 Nonrecurring engineering costs(e) 108 1,896 15 24 101 34 2,179 Customer advances and other 1 1,127 2 — 1 — 1,132 Contract and other deferred assets $ 9,118 $ 6,461 $ 1,933 $ 1,597 $ 874 $ 922 $ 20,905 December 31, 2017 (In millions) Power Aviation Oil & Gas Renewable Energy Transportation Other(a) Total GE Revenues in excess of billings Long-term product service agreements(b) $ 3,357 $ 2,614 $ 517 $ 1 $ 413 $ — $ 6,902 Equipment contract revenues(c) 4,757 280 1,095 295 76 371 6,874 Total contract assets 8,115 2,893 1,612 296 488 371 13,775 Deferred inventory costs(d) 1,304 564 358 950 43 359 3,579 Nonrecurring engineering costs(e) 122 1,696 — — 87 — 1,905 Customer advances and other — 1,098 — — — — 1,098 Contract and other deferred assets $ 9,539 $ 6,251 $ 1,971 $ 1,246 $ 619 $ 729 $ 20,356 (a) Primarily includes our Healthcare segment (b) Long-term product service agreement balances are presented net of related billings in excess of revenues of $4,932 million and $5,498 million at September 30, 2018 and December 31, 2017, respectively. (c) Included in this balance are amounts due from customers for the sale of service upgrades, which we collect through higher fixed or usage-based fees from servicing the equipment under long-term product service agreements. Amounts due from these financing arrangements totaled $869 million and $748 million , as of September 30, 2018 and December 31, 2017, respectively. (d) Represents cost deferral for shipped goods (such as components for wind turbine assembly within our Renewable Energy segment) and labor and overhead costs on time and material service contracts (primarily originating in Power and Aviation) and other costs for which the criteria for revenue recognition has not yet been met. (e) Includes costs incurred prior to production (e.g., requisition engineering) for equipment production contracts, primarily within our Aviation segment, which are allocated ratably to each unit produced. Contract and other deferred assets increased $549 million in 2018, which was largely driven by a change in estimated profitability of $225 million within our long-term product service agreements, primarily due to an increase at Power ( $211 million ). In addition, revenue in excess of billings on our long-term product service agreements increased $63 million , driven by increases at Power ( $261 million ) and Transportation ( $62 million ), partially offset by a decrease at Aviation ( $259 million ). Non-recurring engineering costs increased $274 million , primarily at Aviation ( $200 million ). Our equipment related contract assets increased $16 million , primarily due to increases at Healthcare ($ 175 million), Aviation ( $164 million ), and Transportation ( $131 million ), partially offset by a decrease at Power ( $481 million ). Deferred inventory costs decreased $64 million due to decreases at Power ( $399 million ) and Oil & Gas ( $107 million ), partially offset by increases at Renewable Energy ( $327 million ) and Aviation ( $134 million ), due to the timing of revenue recognized for work performed relative to the timing of title transfer of goods. PROGRESS COLLECTIONS & DEFERRED INCOME (In millions) September 30, 2018 December 31, 2017 GE Contract Liabilities Progress collections $ 17,036 $ 18,310 Deferred income 3,811 3,911 Total progress collections & deferred income $ 20,847 $ 22,221 Revenues recognized for balances that were included in our contract liabilities at the beginning of the period were $13,131 million and $11,446 million for the nine months ended September 30, 2018 and 2017, respectively . |
BORROWINGS
BORROWINGS | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 11. BORROWINGS (In millions) September 30, 2018 December 31, 2017 Short-term borrowings GE Commercial paper $ 3,006 $ 3,000 Current portion of long-term borrowings 3,768 9,452 Other 1,921 2,095 Total GE short-term borrowings 8,694 14,548 GE Capital Commercial paper 3,011 5,013 Current portion of long-term borrowings(a) 4,423 5,781 Intercompany payable to GE(c) 3,181 8,310 Other 607 497 Total GE Capital short-term borrowings 11,223 19,602 Eliminations (4,711 ) (10,114 ) Total short-term borrowings $ 15,206 $ 24,036 Long-term borrowings GE Senior notes(b) $ 57,118 $ 62,724 Subordinated notes 2,893 2,913 Other 853 1,403 Total GE long-term borrowings 60,863 67,040 GE Capital Senior notes 35,152 40,754 Subordinated notes 161 208 Intercompany payable to GE(c) 20,069 31,533 Other(a) 946 1,118 Total GE Capital long-term borrowings 56,329 73,614 Eliminations(c) (20,132 ) (32,079 ) Total long-term borrowings $ 97,060 $ 108,575 Non-recourse borrowings of consolidated securitization entities(d) $ 2,699 $ 1,980 Total borrowings $ 114,966 $ 134,591 (a) Included $189 million and $946 million of short- and long-term borrowings, respectively, at September 30, 2018 and $348 million and $1,118 million of short- and long-term borrowings, respectively, at December 31, 2017 , of funding secured by aircraft and other collateral. Of this, $236 million and $458 million is non-recourse to GE Capital at September 30, 2018 and December 31, 2017 , respectively. (b) Included $6,181 million and $6,206 million of BHGE senior notes at September 30, 2018 and December 31, 2017 , respectively. Total BHGE borrowings were $6,357 million and $7,225 million at September 30, 2018 and December 31, 2017 , respectively. (c) Included a reduction of $480 million and zero for short-term intercompany loans from GE Capital to GE at September 30, 2018 and December 31, 2017 , respectively, and a reduction of $13,269 million and $7,271 million for long-term intercompany loans from GE Capital to GE at September 30, 2018 and December 31, 2017 , respectively. These loans bear the right of offset against amounts owed under the assumed debt agreement and can be prepaid by GE at any time in whole or in part, without premium or penalty. Excluding intercompany loans, the total short- and long-term assumed debt was $3,661 million and $33,338 million at September 30, 2018 and $8,310 million and $38,804 million at December 31, 2017 , respectively. (d) Included $424 million and $621 million of current portion of long-term borrowings at September 30, 2018 and December 31, 2017 , respectively. See Note 17 for further information. 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. At September 30, 2018 , the Guarantee applies to $37,948 million of GE Capital debt. See Note 17 for further information about borrowings and associated interest rate swaps. |
INVESTMENT CONTRACTS, INSURANCE
INVESTMENT CONTRACTS, INSURANCE LIABILITIES AND INSURANCE ANNUITY BENEFITS | 9 Months Ended |
Sep. 30, 2018 | |
Insurance [Abstract] | |
INVESTMENT CONTRACTS, INSURANCE LIABILITIES AND INSURANCE ANNUITY BENEFITS | NOTE 12. 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) September 30, 2018 December 31, 2017 Future policy benefit reserves Long-term care insurance contracts $ 16,119 $ 16,522 Structured settlement annuities with life contingencies and other contracts 9,450 9,448 Shadow adjustments(a) 2,409 4,582 27,978 30,552 Investment contracts 2,433 2,569 Claim reserves(b) 5,277 5,094 Unearned premiums and other 382 372 36,070 38,587 Eliminations (495 ) (451 ) Total $ 35,575 $ 38,136 (a) To the extent that unrealized gains on debt securities supporting our insurance contracts would result in a premium deficiency should those gains be realized, an increase in future policy benefit reserves is recorded, with an offsetting amount recorded in Other comprehensive income, net of taxes. (b) Includes $3,816 million and $3,590 million related to long-term care insurance contracts and $368 million and $364 million related to short-duration contracts, net of eliminations, at September 30, 2018 and December 31, 2017, respectively. During 2017, in response to elevated claim experience for a portion of our long-term care insurance contracts that was most pronounced for policyholders with higher attained ages, we initiated a comprehensive review of premium deficiency assumptions across all insurance products, which included reconstructing our future claim cost assumptions for long-term care contracts utilizing trends observed in our emerging experience for older claimant ages and later duration policies. Certain of our long-term care policyholders only recently started to reach the prime claim paying period and our new claim cost assumptions considered the emerging credibility of this claim data. In addition to the adverse impact from the increased expected future claim cost assumptions over a long-term horizon, our premium deficiency assumptions considered mortality, length of time a policy will remain in force and both near-term and longer-term investment return expectations. Future investment yields estimated in 2017 were lower than in previous premium deficiency tests, primarily due to the effect of near-term yields on approximately $14.5 billion of future expected capital contributions. The indicated premium deficiency resulted in a $9,481 million pre-tax charge to earnings in the fourth quarter of 2017. In response to the premium deficiency, our future policy benefit reserves at December 31, 2017 were unlocked and updated to reflect our most recent assumptions. Our future policy benefit reserves are subject to premium deficiency testing at least annually, which we expect to complete in the fourth quarter of 2018. Any future adverse changes in our assumptions could result in an increase to future policy benefit reserves and additional contributions of capital over and above the $11 billion noted below. Any favorable changes to these assumptions could result in additional margin in our premium deficiency test and higher income over the remaining duration of the portfolio, including higher investment income. Claim reserves included incurred claims of $1,641 million and $1,482 million for the nine months ended September 30, 2018 and 2017, of which $1 million and $60 million related to the recognition of adjustments to prior year claim reserves arising from our periodic reserve evaluation, in the nine months ended September 30, 2018 and 2017, respectively. Paid claims were $1,499 million and $1,260 million in the nine months ended September 30, 2018 and 2017, respectively. The vast majority of paid claims relate to prior year insured events primarily as a result of the length of time long-term care policyholders remain on claim. When insurance companies cede insurance risk to third parties, such as reinsurers, they are not relieved of their primary obligation to policyholders and cedents. When losses on ceded risks give rise to claims for recovery, we establish allowances for probable losses on such receivables from reinsurers as required. Reinsurance recoverables, net are included in the caption “Other GE Capital receivables” on our consolidated Statement of Financial Position, and amounted to $2,217 million and included $749 million related to ceded claim reserves at September 30, 2018. Reinsurance recoverables amounted to $2,458 million and included $715 million related to ceded claim reserves at December 31, 2017. The vast majority of our remaining net reinsurance recoverables are secured by assets held in a trust for which we are the beneficiary. We recognize reinsurance recoveries as a reduction of the caption “Investment contracts, insurance losses and insurance annuity benefits" in our consolidated Statement of Earnings (Loss). Reinsurance recoveries were $89 million and $104 million for the three months ended September 30, 2018 and 2017, respectively, and $206 million and $339 million for the nine months ended September 30, 2018 and 2017, respectively. Our run-off insurance subsidiaries are required to prepare statutory financial statements in accordance with statutory accounting practices that differ in certain respects from GAAP. Statutory accounting practices are set forth by the National Association of Insurance Commissioners as well as state laws, regulation and general administrative rules. In the fourth quarter of 2017 we recorded a premium deficiency pre-tax charge to earnings of $9,481 million on a GAAP basis. For statutory accounting purposes, the Kansas Insurance Department approved our request for a permitted statutory accounting practice to recognize the reserve increase over a seven -year period. As a result, GE Capital contributed capital to its insurance subsidiaries of $3.5 billion in the first quarter of 2018 and expects to contribute approximately an additional $11 billion through 2024 subject to ongoing monitoring by the Kansas Insurance Department. GE is required to maintain specified capital levels at these insurance subsidiaries under capital maintenance agreements. |
POSTRETIREMENT BENEFIT PLANS
POSTRETIREMENT BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
POSTRETIREMENT BENEFIT PLANS | NOTE 13. 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. During 2018, we funded contributions of $6,000 million to the GE Pension Plan. EFFECT ON OPERATIONS OF PENSION PLANS Principal pension plans Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Service cost for benefits earned $ 232 $ 267 $ 667 $ 810 Prior service cost amortization 36 73 108 218 Expected return on plan assets (803 ) (847 ) (2,443 ) (2,545 ) Interest cost on benefit obligations 666 715 1,999 2,144 Net actuarial loss amortization 947 702 2,841 2,109 Curtailment loss 46 (a) — 46 (a) 43 (b) Pension plans cost $ 1,124 $ 910 $ 3,218 $ 2,779 (a) Curtailment loss resulting from a BHGE decision to no longer participate in the GE Pension Plan after December 31, 2018. (b) Curtailment loss resulting from the sale of Industrial Solutions business within our Power segment. Other pension plans Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Service cost for benefits earned $ 85 $ 156 $ 279 $ 430 Prior service credit amortization (2 ) (2 ) (4 ) (4 ) Expected return on plan assets (342 ) (324 ) (1,059 ) (919 ) Interest cost on benefit obligations 150 158 462 445 Net actuarial loss amortization 78 110 243 320 Settlement gain — — (6 ) (a) — Curtailment loss — 11 (b) — 11 (b) Pension plans cost (income) $ (31 ) $ 109 $ (85 ) $ 283 (a) Settlement gain resulting from the sale of the Industrial Solutions business within our Power segment. (b) Curtailment loss resulting from a Canadian manufacturing plant closure. EFFECT ON OPERATIONS OF PRINCIPAL RETIREE BENEFIT PLANS Principal retiree benefit plans Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Service cost for benefits earned $ 19 $ 25 $ 48 $ 77 Prior service credit amortization (58 ) (42 ) (172 ) (128 ) Expected return on plan assets (8 ) (9 ) (22 ) (27 ) Interest cost on benefit obligations 49 55 147 168 Net actuarial gain amortization (19 ) (20 ) (59 ) (61 ) Curtailment loss — — — 3 (a) Retiree benefit plans cost (income) $ (17 ) $ 9 $ (58 ) $ 32 (a) Curtailment loss resulting from the sale of the Industrial Solutions business within our Power segment. The components of net periodic benefit costs other than the service cost component are included in the caption "Non-operating benefit costs" in our consolidated Statement of Earnings (Loss). |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 14. INCOME TAXES Our consolidated effective income tax rates were (3.2)% and (38.1)% during the nine months ended September 30, 2018 and 2017, respectively. The negative rate for 2018 reflects a tax expense on a pretax loss whereas the negative rate for 2017 reflects a tax benefit on pretax income. The rate for 2018 differs from the U.S. statutory rate primarily due to the non-deductible impairment of goodwill associated with the Power business and international tax expenses in excess of benefits from global activities. International tax expenses were impacted by the increase in valuation allowances on the deferred tax assets of our non-U.S. operations as a result of lower forecasted operating earnings in our Power business and the decision to execute an internal restructuring to separate the Healthcare business and the cost of the newly enacted base erosion and global intangible income provisions. This was partially offset by U.S. business credits and an adjustment to decrease the 2018 nine-month tax rate to be in line with the lower expected full-year rate. The rate for 2017 benefited from the tax difference on global activities, the tax rate on the disposition of the Water business and U.S. business credits partially offset by an adjustment to increase the 2017 nine-month tax rate to be in line with the higher expected full-year rate and by the non-deductible impairment of goodwill associated with the Power Conversion business. On December 22, 2017, the U.S. enacted legislation commonly known as the Tax Cuts and Jobs Act (“U.S. tax reform”) that lowered the statutory tax rate on U.S. earnings to 21%, taxes historic foreign earnings at a reduced rate of tax, establishes a territorial tax system and enacts new taxes associated with global operations. The impact of enactment of U.S. tax reform has been recorded on a provisional basis as the legislation provides for additional guidance to be issued by the U.S. Department of the Treasury on several provisions including the computation of the transition tax. Guidance during 2018 could impact the information required for and the calculation of the transition tax charge and could affect decisions that affect the tax on various U.S. and foreign items, which would further impact the final amounts included in the transition charge and impact the revaluation of deferred taxes. In addition, analysis performed and conclusions reached as part of the tax return filing process and additional guidance on accounting for U.S. tax reform could affect the provisional amount. Additionally, as part of tax reform, the U.S. has enacted a minimum tax on foreign earnings (“global intangible low tax income”). We have not made an accounting policy election on the deferred tax treatment and, consequently, we have not made an accrual for the deferred tax aspects of this provision. With the enactment of U.S. tax reform, we recorded, for the period ending December 31, 2017, tax expense of $4,512 million to reflect our provisional estimate of both the transition tax on historic foreign earnings ( $1,155 million including $2,925 million at GE and $(1,770) million at GE Capital) and the revaluation of deferred taxes ( $3,357 million including $1,980 million at GE and $1,377 million at GE Capital). We have not significantly adjusted our provisional estimate of the enactment of U.S. tax reform during the third quarter of 2018 as we continue to analyze information related to our operations as well as new guidance and other aspects of the enacted provisions. Based on our on-going analysis of the currently issued guidance on the transition tax on historic foreign earnings and related foreign tax credit impacts through the third quarter, including advice from outside advisors, we believe the provisional estimate of the impact of enactment, as recorded in the fourth quarter of 2017 and adjusted during 2018 remains a reasonable estimate of the effects of enactment including the impact of items in the 2018 tax filings. We will update the impact of enactment during the fourth quarter of 2018 based on available government guidance and additional analysis of our information. However, there were discrete changes in the provisional estimate identified, primarily at Baker Hughes in connection with the measurement period adjustments to purchase price allocation and the associated impact of the change in tax rate on deferred taxes that reduced the provisional amounts recorded by $79 million in the first nine months of 2018. Of this benefit, $134 million relates to non-consolidated operations and did not affect net earnings attributable to the company as there is an offsetting adjustment in income from noncontrolling interests. The net remaining cost of $55 million also relates primarily to the revaluation of deferred taxes corresponding to measurement period adjustments to the purchase price allocation for the Baker Hughes acquisition. Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in determining our tax expense and in evaluating our 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) September 30, 2018 December 31, 2017 Unrecognized tax benefits $ 4,908 $ 5,449 Portion that, if recognized, would reduce tax expense and effective tax rate(a) 3,771 3,626 Accrued interest on unrecognized tax benefits 886 810 Accrued penalties on unrecognized tax benefits 188 158 Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months 0-1,300 0-1,100 Portion that, if recognized, would reduce tax expense and effective tax rate(a) 0-1,200 0-900 (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 and has begun the audit for 2014-2015. 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. The United Kingdom tax authorities have indicated an intent to disallow interest deductions claimed by GE Capital for the years 2004-2015 that could result in a potential impact of approximately $1 billion , which includes a possible assessment of tax and reduction of deferred tax assets, not including interest and penalties. If assessed, we intend to contest the disallowance. We comply with all applicable tax laws and judicial doctrines of the United Kingdom and believe that the entire benefit is more likely than not to be sustained on its technical merit. 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 | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
SHAREOWNERS’ EQUITY | NOTE 15. SHAREOWNERS’ EQUITY Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Preferred stock issued $ 6 $ 6 $ 6 $ 6 Common stock issued $ 702 $ 702 $ 702 $ 702 Accumulated other comprehensive income (loss) Beginning balance $ (13,432 ) $ (15,457 ) $ (14,404 ) $ (18,588 ) Other comprehensive income (loss) before reclassifications Investment securities - net of deferred taxes of $(22), $45, $26 and $204(a) (74 ) 54 67 363 Currency translation adjustments (CTA) - net of deferred taxes of $(24), $(407), $17 and $(648) (639 ) 697 (1,856 ) 1,437 Cash flow hedges - net of deferred taxes of $2, $55, $(6) and $53 (8 ) 175 (35 ) 239 Benefit plans - net of deferred taxes of $16, $(49), $71 and $84 73 (132 ) 199 368 Total $ (648 ) $ 793 $ (1,625 ) $ 2,407 Reclassifications from other comprehensive income Investment securities - net of deferred taxes of $5, $(17), $3 and $(78)(b) 17 (32 ) 1 (150 ) Currency translation on dispositions - net of deferred taxes of $(1), $2, $(1) and $(538)(b) 7 (196 ) 385 392 Cash flow hedges - net of deferred taxes of $2, $(28), $9 and $(37)(c) (1 ) (75 ) — (129 ) Benefit plans - net of deferred taxes of $230, $275 $666 and $833(d) 789 556 2,322 1,667 Total $ 812 $ 253 $ 2,708 $ 1,780 Other comprehensive income (loss) 164 1,046 1,082 4,184 Less other comprehensive income (loss) attributable to noncontrolling interests (39 ) 124 (92 ) 131 Other comprehensive income (loss), net, attributable to GE 203 922 1,174 4,053 Ending Balance $ (13,229 ) $ (14,535 ) $ (13,229 ) $ (14,535 ) Other capital Beginning balance 37,352 37,468 37,384 37,224 Gains (losses) on treasury stock dispositions and other (41 ) 1,169 (73 ) 1,413 Ending Balance $ 37,311 $ 38,637 $ 37,311 $ 38,637 Retained earnings Beginning balance(e) 114,913 130,271 117,245 133,856 Net earnings (loss) attributable to the Company (22,769 ) 1,360 (23,116 ) 2,334 Dividends and other transactions with shareowners (1,086 ) (2,121 ) (3,395 ) (6,514 ) Redemption value adjustment on redeemable noncontrolling interests(f) (191 ) (70 ) (367 ) (236 ) Other changes(g) — — 500 — Ending Balance $ 90,867 $ 129,440 $ 90,867 $ 129,440 Common stock held in treasury Beginning balance (84,471 ) (85,617 ) (84,902 ) (83,038 ) Purchases (55 ) (108 ) (198 ) (3,728 ) Dispositions 324 526 897 1,567 Ending Balance $ (84,202 ) $ (85,199 ) $ (84,202 ) $ (85,199 ) Total equity GE shareowners' equity balance 31,454 69,051 31,454 69,051 Noncontrolling interests balance 16,383 17,701 16,383 17,701 Total equity balance at September 30 $ 47,837 $ 86,751 $ 47,837 $ 86,751 (a) Included adjustments of $234 million and $9 million for the three months ended September 30, 2018 and 2017 and $1,705 million and $(180) million for the nine months ended September 30, 2018 and 2017, respectively, to investment contracts, insurance liabilities and annuity benefits in our run-off insurance operations to reflect the effects that would have been recognized had the related unrealized investment securities holding gains been realized. See Note 12 for further information. (b) Primarily recorded in "GE Capital Revenues from Services" and "Other income" and income taxes in "Benefit (provision) for income taxes" in our consolidated Statement of Earnings (Loss). Currency translation gains and losses on dispositions included zero for the three and nine months ended September 30, 2018, and zero and $510 million for the three and nine months ended September 30, 2017, respectively, in earnings (loss) from discontinued operations, net of taxes. (c) Cash flow hedges primarily includes impact of foreign exchange contracts and gains and losses on interest rate derivatives, primarily recorded in GE Capital revenue from services, interest and other financial charges and other costs and expenses. See Note 17 for further information. (d) Primarily includes amortization of actuarial gains and losses, amortization of prior service cost and curtailment gain and loss. These components are included in the computation of net periodic pension cost. See Note 13 for further information. (e) January 1, 2018 amount has been adjusted to reflect retrospective adoption of ASC 606 $(8,061) million and preferable accounting change from LIFO to FIFO $(377) million . (f) Amount of redemption value adjustment on redeemable noncontrolling interest shown net of deferred taxes. (g) On January 1, 2018, we adopted several new accounting standards on a modified retrospective basis. Cumulative impact of these changes was recorded in the opening retained earnings and it increased our retained earnings by $500 million , primarily due to an increase of $464 million related to ASU 2016-16. See Note 1 for further information. SHARES OF GE PREFERRED STOCK On January 20, 2016, we issued $5,694 million of GE Series D preferred stock following an exchange offer for existing GE series A, B and C. The Series D preferred stock are callable on January 21, 2021 and bear a fixed interest rate of 5.00% through January 21, 2021 and floating rate equal to three-month LIBOR plus 3.33% thereafter. Following the exchange offer, $250 million of GE Series A, B and C preferred stock still remain outstanding with an initial average fixed dividend rate of 4.07% . The total carrying value of GE preferred stock at September 30, 2018 was $5,537 million and will increase to $5,944 million through periodic accretion. Dividends on GE preferred stock are payable semi-annually, in June and December and accretion is recorded on a quarterly basis. Dividends on GE preferred stock totaled $39 million and $36 million in the three months ended September 30, 2018 and 2017, respectively and $260 million , including cash dividends of $147 million , and $252 million , including cash dividends of $147 million , in the nine months ending September 30, 2018 and 2017, respectively. In conjunction with the 2016 exchange of the GE Capital preferred stock into GE preferred stock and the exchange of Series A, B and C preferred stock into Series D preferred stock, GE Capital issued preferred stock to GE for which the amount and terms mirrored the GE preferred stock held by external investors. On July 1, 2018, GE Capital and GE exchanged the existing Series D preferred stock issued to GE for new Series D preferred stock which is mandatorily convertible into GE Capital common stock on January 21, 2021. The new Series D preferred stock has a carrying value of $5,496 million at September 30, 2018 and will no longer be subject to periodic accretion. The cash dividend on the new GE Capital preferred stock will equal the cash dividend and accretion on the GE Series D preferred stock through January 21, 2021, at which time the GE Capital preferred stock will convert to GE Capital common stock. The exchange of GE Capital Series D preferred stock has no impact on the GE Series D preferred stock, which remains callable for $5,694 million on January 21, 2021 or thereafter on dividend payment dates. Additionally, there were no changes to the existing Series A, B or C preferred stock issued to GE. 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 September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Beginning balance $ 16,685 $ 1,634 $ 17,468 $ 1,663 Net earnings (loss) 54 (114 ) 105 (94 ) Dividends (96 ) (99 ) (260 ) (130 ) Other(a) (260 ) 16,279 (930 ) 16,261 Ending balance at September 30(b) $ 16,383 $ 17,701 $ 16,383 $ 17,701 (a) Included impact of AOCI, acquisitions, dispositions and BHGE stock repurchases. (b) Included $15,192 million and $16,158 million attributable to the BHGE Class A Shareholders at September 30, 2018 and 2017, respectively. 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 in 2015, we formed three joint ventures in grid technology, renewable energy, and global nuclear and French steam power. Noncontrolling interests in these joint ventures hold certain redemption rights. 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. Alstom had redemption rights with respect to its interest in the grid technology and renewable energy joint ventures, which, if exercised, would require us to purchase all of their interest during September 2018 or September 2019. Alstom also had similar redemption rights for the global nuclear and French steam power joint venture that are exercisable during the first quarter of 2021 or the first quarter of 2022. The redemption price would generally be equal to Alstom's initial investment plus annual accretion of 3% for the grid technology and renewable energy joint ventures and plus annual accretion of 2% for the nuclear and French steam power joint venture, with potential upside sharing based on an EBITDA multiple. Alstom also had additional redemption rights in other limited circumstances as well as a call option to require GE to sell all of its interests in the renewable energy joint venture at the higher of fair value or Alstom's initial investment plus annual accretion of 3% during the month of May in the years 2017 through 2019 and also upon a decision to IPO the joint venture. GE had a call option on Alstom's interest in the global nuclear and French steam power joint venture at the same amount as Alstom's redemption price in the event that Alstom exercises its put option in the grid technology or renewable energy joint ventures. GE also had call options on Alstom's interest in the three joint ventures in other limited circumstances. In addition, the French Government holds a preferred interest in the global nuclear and French steam power joint venture, giving it certain protective rights. In January 2018, Alstom informed us that they intend to exercise their redemption rights with respect to the grid technology and renewable energy joint ventures in September 2018. Pursuant to an agreement signed between Alstom and GE in May 2018, if Alstom exercised its redemption rights in September 2018 with respect to the grid technology and renewable energy joint ventures, GE would be deemed to have exercised its option to acquire Alstom’s interest in the nuclear and French steam power joint venture. On September 5, 2018, Alstom exercised its redemption rights related to grid technology and renewable energy, and accordingly GE also exercised its call option to acquire Alstom’s interest in the nuclear and French steam power joint venture. Accordingly, redeemable noncontrolling interest balance was reclassified to GE current liabilities in the third quarter of 2018, and was settled on October 2, 2018, in accordance with the contractual payment terms. The price GE paid was €1,832 million for the grid technology joint venture, €638 million for the renewable energy joint venture and €125 million for the nuclear and French steam power joint venture. CHANGES TO REDEEMABLE NONCONTROLLING INTERESTS Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Beginning balance $ 3,376 $ 3,185 $ 3,391 $ 3,017 Net earnings (loss) (144 ) (56 ) (293 ) (218 ) Dividends — (12 ) (19 ) (22 ) Redemption value adjustment 203 70 401 236 Other(a) (3,049 ) 246 (3,094 ) 420 Balance at September 30 $ 386 $ 3,433 $ 386 $ 3,433 (a) In 2018, included $(3,028) million reclassified to GE current liabilities related to Alstom joint ventures. OTHER GE Capital paid no common dividends to GE in the three and nine months ended September 30, 2018, respectively. Common dividends paid by GE Capital to GE were zero and $4,105 million (including cash dividends of $4,016 million ) in the three and nine months ended September 30, 2017, respectively. |
EARNINGS PER SHARE INFORMATION
EARNINGS PER SHARE INFORMATION | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE INFORMATION | NOTE 16. EARNINGS PER SHARE INFORMATION Three months ended September 30 2018 2017 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Amounts attributable to the Company: Consolidated Earnings from continuing operations $ (22,812 ) $ (22,812 ) $ 1,459 $ 1,459 Preferred stock dividends (39 ) (39 ) (36 ) (36 ) Earnings from continuing operations attributable to $ (22,851 ) $ (22,851 ) $ 1,423 $ 1,423 Loss from discontinued operations 36 36 (109 ) (109 ) Net earnings attributable to GE common $ (22,812 ) $ (22,812 ) $ 1,318 $ 1,318 Average equivalent shares Shares of GE common stock outstanding 8,694 8,694 8,665 8,665 Employee compensation-related shares (including stock options) — — 67 — Total average equivalent shares 8,694 8,694 8,732 8,665 Per-share amounts Earnings from continuing operations $ (2.63 ) $ (2.63 ) $ 0.16 $ 0.16 Loss from discontinued operations — — (0.01 ) (0.01 ) Net earnings (2.62 ) (2.62 ) 0.15 0.15 Nine months ended September 30 2018 2017 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Amounts attributable to the Company: Consolidated Earnings from continuing operations $ (21,489 ) $ (21,489 ) $ 2,815 $ 2,815 Preferred stock dividends (260 ) (260 ) (252 ) (252 ) Earnings from continuing operations attributable to $ (21,749 ) $ (21,749 ) $ 2,563 $ 2,563 Loss from discontinued operations (1,642 ) (1,642 ) (507 ) (507 ) Net earnings attributable to GE common $ (23,383 ) $ (23,383 ) $ 2,066 $ 2,066 Average equivalent shares Shares of GE common stock outstanding 8,689 8,689 8,689 8,689 Employee compensation-related shares (including stock options) — — 85 — Total average equivalent shares 8,689 8,689 8,774 8,689 Per-share amounts Earnings from continuing operations $ (2.50 ) $ (2.50 ) $ 0.29 $ 0.30 Loss from discontinued operations (0.19 ) (0.19 ) (0.06 ) (0.06 ) Net earnings (2.69 ) (2.69 ) 0.24 0.24 (a) Our unvested restricted stock unit awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities. For the three and nine months ended September 30, 2018 and 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. (b) Included an insignificant amount of dividend equivalents in each of the periods presented. F or the three months ended September 30, 2018 and 2017 , approximately 424 million and 82 million of outstanding stock awards were not included in the computation of diluted earnings per share because their effect was antidilutive. For the nine months ended September 30, 2018 and 2017, approximately 410 million and 48 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 AND NON-R
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS | NOTE 17. FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS The following table provides information about assets and liabilities not carried at fair value. The table excludes finance leases, equity investments without readily determinable fair value 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. September 30, 2018 December 31, 2017 (In millions) Carrying Estimated Carrying Estimated GE Assets Notes receivable $ 680 $ 674 $ 700 $ 700 Liabilities Borrowings(a)(b) 32,558 31,809 34,473 35,416 Borrowings (debt assumed)(a)(c) 37,000 40,300 47,114 53,502 GE Capital Assets Loans 12,744 12,737 17,363 17,331 Other commercial mortgages 1,783 1,811 1,489 1,566 Loans held for sale 1,326 1,328 3,274 3,274 Liabilities Borrowings(a)(d)(e)(f) 47,000 49,460 55,353 60,415 Investment contracts 2,434 2,712 2,569 2,996 (a) See Note 11. (b) Included $ 194 million and $ 217 million of accrued interest in estimated fair value at September 30, 2018 and December 31, 2017 , respectively. (c) Included $ 397 million and $ 696 million of accrued interest in estimated fair value at September 30, 2018 and December 31, 2017 , respectively. (d) Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at September 30, 2018 and December 31, 2017 would have been reduced by $ 1,016 million and $ 1,754 million, respectively. (e) Included $ 670 million and $ 731 million of accrued interest in estimated fair value at September 30, 2018 and December 31, 2017 , respectively. (f) Excluded $ 23,250 million and $ 39,844 million of net intercompany payable to GE at September 30, 2018 and December 31, 2017 , respectively. NOTIONAL AMOUNTS OF LOAN COMMITMENTS (In millions) September 30, 2018 December 31, 2017 Ordinary course of business lending commitments(a) $ 724 $ 1,105 Unused revolving credit lines 50 198 (a) Excluded investment commitments of $ 1,415 million and $ 677 million at September 30, 2018 and December 31, 2017 , 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. 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. Net investment hedges – We invest in foreign operations that conduct their financial services activities in currencies other than the U.S. dollar. We hedge the currency risk associated with those investments primarily using non-derivative instruments such as debt denominated in a foreign currency and short-term currency exchange contracts under which we receive U.S. dollars and pay foreign currency. 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. 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. The majority of the outstanding notional amount of $134 billion at September 30, 2018 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. Derivative assets and liabilities are recorded at fair value exclusive of interest earned or owed on interest rate derivatives, which is presented separately on our Statement of Financial Position. Cash collateral and securities held as collateral represent assets that have been provided by our derivative counterparties as security for amounts they owe us (derivatives that are in an asset position). FAIR VALUE OF DERIVATIVES September 30, 2018 December 31, 2017 (In millions) Assets Liabilities Assets Liabilities Derivatives accounted for as hedges Interest rate contracts $ 1,278 $ 350 $ 1,862 $ 148 Currency exchange contracts 177 118 160 70 1,455 468 2,021 218 Derivatives not accounted for as hedges Interest rate contracts 32 (1 ) 93 8 Currency exchange contracts 674 1,283 1,111 2,043 Other contracts 80 135 139 91 787 1,418 1,343 2,143 Gross derivatives recognized in statement of financial position Gross derivatives 2,242 1,885 3,364 2,361 Gross accrued interest 228 (31 ) 469 (38 ) 2,471 1,855 3,833 2,323 Amounts offset in statement of financial position Netting adjustments(a) (978 ) (977 ) (1,457 ) (1,456 ) Cash collateral(b) (1,152 ) (338 ) (1,529 ) (578 ) (2,129 ) (1,315 ) (2,986 ) (2,034 ) Net derivatives recognized in statement of financial position Net derivatives 342 540 847 289 Amounts not offset in statement of financial position Securities held as collateral(c) (144 ) — (405 ) — Net amount $ 198 $ 540 $ 441 $ 289 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 September 30, 2018 and December 31, 2017 , the cumulative adjustment for non-performance risk was zero and $(1) million , respectively. (b) Excluded excess cash collateral received and posted of $50 million and $420 million at September 30, 2018 , respectively, and $10 million and $255 million at December 31, 2017 , respectively. Excess cash collateral posted includes initial margin for cleared trades. (c) Excluded excess securities collateral received of zero and $16 million at September 30, 2018 and December 31, 2017 , respectively. 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 September 30 Nine months ended September 30 (In millions) Effect on hedging instrument Effect on underlying Effect on earnings (a) Effect on hedging instrument Effect on underlying Effect on earnings 2018 Cash flow hedges $ (6 ) $ 7 $ 1 $ (25 ) $ 27 $ 2 Fair value hedges (362 ) 333 (29 ) (1,285 ) 1,200 (85 ) Net investment hedges(b) (56 ) 62 6 157 (144 ) 14 Economic hedges(c) (677 ) 456 (221 ) (1,460 ) 1,126 (334 ) Total $ (243 ) $ (403 ) 2017 Cash flow hedges $ 225 $ (225 ) $ — $ 281 $ (281 ) $ — Fair value hedges (148 ) 103 (45 ) (430 ) 267 (162 ) Net investment hedges(b) (1,016 ) 1,020 4 (2,065 ) 2,082 17 Economic hedges(c) 663 (920 ) (257 ) 1,304 (1,876 ) (572 ) Total $ (298 ) $ (717 ) The amounts in the table above generally do not include associated derivative accruals in income or expense. (a) For cash flow and fair value hedges, the effect on earnings is primarily related to ineffectiveness. For net investment hedges, the effect on earnings is related to ineffectiveness and spot-forward differences. (b) Both non-derivatives and derivatives hedging instruments are included. The carrying value of non-derivative instruments designated as net investment hedges was $(12,894) million and $(13,213) million at September 30, 2018 and 2017, respectively. Total pre-tax reclassifications from CTA to gain (loss) was $(7) million and $78 million at September 30, 2018 and 2017, respectively. Total pre-tax reclassifications from CTA to gain (loss) included zero and $78 million recorded in discontinued operations at September 30, 2018 and 2017, respectively. (c) Net effect is substantially offset by the change in fair value of the hedged item that will affect earnings in future periods. Changes in the fair value of cash flow hedges 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. CASH FLOW HEDGE ACTIVITY Gain (loss) recognized in AOCI Gain (loss) reclassified for the three months ended September 30 for the three months ended September 30 (In millions) 2018 2017 2016 2018 2017 2016 Interest rate contracts $ (4 ) $ 1 $ 1 $ (4 ) $ (6 ) $ (12 ) Currency exchange contracts (3 ) 224 — 2 110 (46 ) Commodity contracts — — 1 — — — Total(a) $ (7 ) $ 225 $ 2 $ (2 ) $ 104 $ (57 ) CASH FLOW HEDGE ACTIVITY Gain (loss) recognized in AOCI Gain (loss) reclassified for the nine months ended September 30 for the nine months ended September 30 (In millions) 2018 2017 2016 2018 2017 2016 Interest rate contracts $ (11 ) $ 3 $ 32 $ (10 ) $ (21 ) $ (67 ) Currency exchange contracts (16 ) 278 (76) 1 189 (59 ) Commodity contracts — — 1 — — (3 ) Total(a) $ (27 ) $ 281 $ (43 ) $ (9 ) $ 167 $ (128 ) (a) Gain (loss) is recorded in "GE Capital revenues from services", "Interest and other financial charges", "Sales of goods", "Cost of goods sold" 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 $75 million gain at September 30, 2018 . We expect to transfer $56 million loss to earnings as an expense in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions. In the nine mo nths ended September 30, 2018, 2017 a nd 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 September 30, 2018, 2017 and 2016, the maximum term of derivative instruments that hedge forecasted transactions was 14 years , 15 years and 16 years , respectively. 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 receivables due from the counterparties, measured at current market value, exceeds specified limits. The fair value of such collateral was $1,295 million at September 30, 2018 , of which $1,152 million was cash and $144 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 cash collateral posted was $338 million at September 30, 2018 . At September 30, 2018 , our exposures to counterparties (including accrued interest), net of collateral we hold, was $106 million . This excludes exposures 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 credit rating of the counterparty were to fall below specified ratings levels agreed upon with the counterparty, primarily BBB/Baa2. 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 subject to such termination provisions, after consideration of collateral posted by us and outstanding interest payments was $510 million at September 30, 2018 . This excludes exposure related to embedded derivatives. NON-RECURRING FAIR VALUE MEASUREMENTS The following table represents non-recurring fair value amounts (as measured at the time of the adjustment) for those assets remeasured to fair value on a non-recurring basis during the fiscal year and still held at September 30, 2018 and December 31, 2017. Remeasured during Remeasured during (In millions) Level 2 Level 3 Level 2 Level 3 Financing receivables $ — $ 8 $ — $ 1,541 Equity securities without readily determinable fair value and equity method investments 479 1,212 — 2,076 Long-lived assets — 413 177 591 Goodwill $ — $ 1,653 $ — $ — Total $ 479 $ 3,286 $ 177 $ 4,208 The following table represents the fair value adjustments to assets measured at fair value on a non-recurring basis and still held at September 30, 2018 and 2017 . Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Financing receivables $ — $ (1 ) $ (2 ) $ (1 ) Equity securities without readily determinable fair value and equity method investments (240 ) (58 ) (441 ) (89 ) Long-lived assets (865 ) (671 ) (975 ) (712 ) Goodwill (21,973 ) $ (947 ) $ (21,973 ) $ (947 ) Total $ (23,079 ) $ (1,676 ) $ (23,391 ) $ (1,748 ) LEVEL 3 MEASUREMENTS - SIGNIFICANT UNOBSERVABLE INPUTS (Dollars in millions) Fair value Valuation technique Unobservable inputs Range September 30, 2018 Non-recurring fair value measurements Equity securities without readily determinable fair value and equity method investments $ 769 Income approach, market comparables Discount rate(a) 6.5%-50%(8.9)% Long-lived assets 352 Income approach Discount rate(a) 2.9%-40%(22.3)% December 31, 2017 Non-recurring fair value measurements Financing receivables $ 1,532 Income approach Discount rate(a) 3.2%-16.5% (10%) Equity securities without readily determinable fair value and equity method investments 2,037 Income approach Discount rate(a) 5.0%-50.0% (7.7%) Long-lived assets 554 Income approach Discount rate(a) 2.7%-18.0% (7.3%) (a) Discount rates are determined based on inputs that market participants would use when pricing investments, including credit and liquidity risk. An increase in the discount rate would result in a decrease in the fair value. At September 30, 2018 and December 31, 2017 , non-recurring measurements of $409 million and $83 million , respectively, are valued using non-binding broker quotes or other third-party sources. At September 30, 2018 and December 31, 2017 , other non-recurring fair value measurements were $103 million and insignificant, respectively. Other Level 3 fair value measurements utilize a number of different unobservable inputs not subject to meaningful aggregation. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 18. 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 VIE is a joint venture, BHGE LLC, which was formed as part of the Baker Hughes transaction. BHGE LLC owns the operating assets of GE Oil & Gas and Baker Hughes. BHGE LLC is a VIE as we hold an economic interest of approximately 62.5% in the partnership, but we hold no voting or participating rights through our direct economic ownership. BHGE LLC is a SEC Registrant with separate filing requirements with the SEC and its separate financial information can be obtained from www.sec.gov. Previously we reported three joint ventures which were formed as part of the Alstom acquisition as consolidated VIEs. These joint ventures were considered VIEs because equity held by Alstom did not participate fully in the earnings of the ventures due to contractual features allowing Alstom to sell their interests back to GE . We consolidated these joint ventures because we controlled all their significant activities. These joint ventures were in all other respects regular businesses and were therefore exempt from ongoing disclosure requirements for consolidated VIEs provided below. These joint ventures ceased to be VIEs on September 5, 2018 when Alstom exercised their put and are now wholly-owned consolidated voting interest entities (see Note 15 for further information) 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) Trade receivables(b) Other(c) Total September 30, 2018 Assets Financing receivables, net $ — $ — $ 1,540 $ 951 $ 2,491 Current receivables 83 457 — — 540 Other assets 455 862 138 1,086 2,540 Total $ 538 $ 1,318 $ 1,678 $ 2,037 $ 5,570 Liabilities Borrowings $ 46 $ — — $ 938 $ 984 Non-recourse borrowings — 585 1,037 — 1,622 Other liabilities 212 644 575 584 2,015 Total $ 257 $ 1,229 1,612 $ 1,522 $ 4,620 December 31, 2017 Assets Financing receivables, net $ — $ — — $ 792 $ 792 Current receivables 59 570 — — 630 Investment securities — — — 918 918 Other assets 586 1,182 — 1,920 3,688 Total $ 646 $ 1,752 — $ 3,630 $ 6,028 Liabilities Borrowings $ 39 $ — — $ 1,027 $ 1,066 Non-recourse borrowings — 669 — 16 685 Other liabilities 345 1,021 — 1,525 2,891 Total $ 384 $ 1,690 — $ 2,568 $ 4,642 (a) Two funding vehicles established to purchase customer notes receivable from GE, one of which is partially funded by third-party debt. (b) In the third quarter of 2018, a funding vehicle was established to provide alternative funding for trade receivables. (c) In January 2018, ownership of the equity shares of Electric Insurance Company ("EIC") were distributed to GE Capital by a bankruptcy. trustee. We have previously reported EIC as a VIE because we received a 100% beneficial interest in the assets, liabilities and operations of EIC, related to an interim distribution in 2001. As EIC is now a consolidated voting interest entity we removed EIC from our VIE disclosure. In 2017, $1,470 million of assets and $959 million of liabilities were included related to EIC . Total revenues from our consolidated VIEs were $141 million and $293 million for the three months ended September 30, 2018 and 2017 and $479 million and $801 million for the nine months ended September 30, 2018 and 2017, respectively. Related expenses consisted primarily of cost of goods and services of $41 million and $78 million for the three months ended September 30, 2018 and 2017 and $174 million and $256 million for the nine months ended September 30, 2018 and 2017, 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-2/P2. These third-party investors also owe us amounts for purchased financial assets and scheduled interest and principal payments. At September 30, 2018 and December 31, 2017, the amounts of commingled cash owed to the third-party investors were $ 21 million and $ 60 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 September 30, 2018 and December 31, 2017 were $4,387 million and $5,833 million , respectively. Substantially all of these investments are held by Energy Financial Services of which $217 million and zero are assets held for sale as of September 30, 2018 and December 31, 2017, respectively. Obligations to make additional investments in these entities are not significant. |
COMMITMENTS, GUARANTEES, PRODUC
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES | NOTE 19. COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES COMMITMENTS The GE Capital Aviation Services (GECAS) business in GE Capital has placed multiple-year orders for various Boeing, Airbus and other aircraft manufacturers with list prices approximating $ 35,412 million and secondary orders with airlines for used aircraft of approximately $ 2,643 million at September 30, 2018 . In our Aviation segment, we have committed to provide financing assistance of $ 2,902 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 September 30, 2018 , we were committed under the following guarantee arrangements beyond those provided on behalf of VIEs. See Note 18. Credit Support. We have provided $ 1,544 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 $ 80 million at September 30, 2018 . Indemnification Agreements – Continuing Operations. We have agreements that require us to fund up to $ 222 million at September 30, 2018 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 $ 6 million at September 30, 2018 . At September 30, 2018 , we also had $ 1,953 million of other indemnification commitments, primarily related to representations and warranties in sales of businesses or assets. The liability for these indemnification commitments was $ 259 million at September 30, 2018 . Indemnification Agreements – Discontinued Operations. At September 30, 2018 , we provided specific indemnifications to buyers of GE Capital’s assets that, in the aggregate, represent substantially all of the maximum potential claim of $ 2,286 million . The majority of these indemnifications relate to the sale of businesses and assets under the GE Capital Exit Plan. We have recorded related liabilities of $ 264 million , which incorporates our evaluation of risk and the likelihood of making payments under the indemnities. The recognized liabilities represent the estimated fair value of the indemnities when issued as adjusted for any subsequent probable and estimable losses. In addition, in connection with the 2015 public offering and sale of 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 September 30, 2018 . 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. Nine months ended September 30 (In millions) 2018 2017 Balance at January 1 $ 2,348 $ 1,929 Current-year provisions 788 606 Expenditures (735 ) (598 ) Other changes(a) 134 255 Balance as of September 30 $ 2,534 $ 2,191 ( 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 was never 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 September 30, 2018, such claims consisted of $144 million of individual claims generally submitted before the filing of a lawsuit (compared to $462 million at December 31, 2017) and $826 million of additional claims asserted against WMC in litigation without making a prior claim (Litigation Claims) (compared to $3,198 million at December 31, 2017). The total amount of these claims, $970 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 decisions of the New York Court of Appeals in ACE Securities Corp. v. DB Structured Products, Inc. (June 11, 2015) and Deutsche Bank National Trust Company v. Flagstar Capital Markets Corporation (October 16, 2018), on the statute of limitations period governing such claims. Reserves related to repurchase claims made against WMC were $245 million at September 30, 2018, reflecting a net decrease to reserves in the nine months ended September 30, 2018 of $171 million due to settlements. 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. During the first quarter of 2018, we also recorded a reserve of $1,500 million in connection with the U.S. Department of Justice's (DOJ) ongoing investigation regarding potential violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) by WMC and GE Capital discussed in Legal Proceedings. This charge was recorded in the first quarter based upon our estimate of the loss contingency at that time, including the status of our settlement discussions with the DOJ in the first quarter and an assessment of prior settlements reached in similar matters. There have been no changes to this estimate since that time. ROLLFORWARD OF THE RESERVE RELATED TO REPURCHASE CLAIMS Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Balance, beginning of period $ 294 $ 636 $ 416 $ 626 Provision (9 ) 11 (4 ) 21 Claim resolutions / rescissions (40 ) — (167 ) — Balance, end of period $ 245 $ 647 $ 245 $ 647 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 September 30, 2018. 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 estimated range of reasonably possible loss excludes any additional loss beyond the amount of our current reserve for the FIRREA investigation, as we are unable at this time to develop such a meaningful estimate. With respect to the FIRREA investigation, this inability to develop a meaningful estimate of any additional loss beyond the amount of our current reserve reflects, among other factors, the wide variety and broad range of penalties and other sanctions incurred by various financial institutions in proceedings and settlements involving claims made under FIRREA by the DOJ, and the possibility WMC will file for bankruptcy. In the event of a WMC bankruptcy, GE Capital would be required to reassess its WMC consolidation analysis depending upon the specific facts and circumstances at that time, which might result in GE Capital no longer consolidating WMC’s assets and liabilities in its financial statements. In that circumstance, GE and GE Capital at that time would have to assess their direct exposure, if any, for purposes of determining their respective WMC-related loss contingencies. It is possible, however, that the ultimate liability of GE Capital and/or WMC could be higher than our current reserve if a negotiated settlement of the FIRREA investigation cannot be reached at a level commensurate with the reserve, or if we face adverse litigation outcomes if a negotiated settlement cannot be reached. 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 in connection with lawsuits brought by RMBS investors concerning alleged misrepresentations in the securitization offering documents to which WMC is not a party, or, in two cases, involving mortgage loan repurchase claims made against RMBS sponsors. 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. Adverse developments under any of these scenarios, or a finding of liability in the TMI case discussed above, could be in an amount exceeding the total value of WMC's assets and could result in WMC filing for bankruptcy. 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. At September 30, 2018, this reserve balance was $913 million . The increase is primarily driven by foreign currency movements. 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, 2017 . |
CASH FLOWS INFORMATION
CASH FLOWS INFORMATION | 9 Months Ended |
Sep. 30, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
CASH FLOWS INFORMATION | NOTE 20. CASH FLOWS INFORMATION Changes in operating assets and liabilities are net of acquisitions and dispositions of principal businesses. Amounts reported in the “Proceeds from sales of discontinued operations” and “Proceeds from principal business dispositions” lines in the Statement of Cash Flows are net of cash transferred and include certain deal-related costs. Amounts reported in the “Net cash from (payments for) principal businesses purchased” line are net of cash acquired and include certain deal-related costs and debt assumed and immediately repaid in acquisitions. 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, pension, gains (losses) on principal business dispositions, and restructuring and other charges. Certain supplemental information related to our cash flows is shown below. GE Nine months ended September 30 (In millions) 2018 2017 All other operating activities (Gains) losses on purchases and sales of business interests(a) $ (476 ) $ (1,955 ) Other gains on investing activities (436 ) (68 ) Income taxes(b) (803 ) (897 ) Principal pension plans(c) (2,968 ) 1,179 Other postretirement benefit plans(d) (916 ) (543 ) Restructuring and other charges(e) 878 1,429 Change in accruals for contract related costs (792 ) (59 ) Other(f) (802 ) (1,245 ) $ (6,315 ) $ (2,160 ) All other investing activities Derivative settlements (net) $ (436 ) $ (1,420 ) Investments in intangible assets (net) (472 ) (376 ) Other 154 (159 ) $ (754 ) $ (1,955 ) Net dispositions (purchases) of GE shares for treasury Open market purchases under share repurchase program $ (180 ) $ (3,394 ) Other purchases (18 ) (58 ) Dispositions 192 831 $ (6 ) $ (2,620 ) (a) Included pre-tax gains on sales of businesses reclassified to "Proceeds from principal business dispositions" within Cash flows from investing activities of $(681) million for Value-Based Care and $(298) million for Industrial Solutions, partially offset by pre-tax losses of $511 million on planned business disposals in the nine months ended September 30, 2018 , and included pre-tax gains on sales of businesses of $(1,885) million for Water in the nine months ended September 30, 2017 . See Note 2. (b) Reflected the effects of current tax expense of $479 million and $909 million and net cash paid during the year for income taxes of $(1,283) million and $(1,806) million for the nine months ended September 30 , 2018 and 2017, respectively. Cash flows effects of deferred tax provisions (benefits) are shown separately within Cash flows from operating activities in the Statement of Cash Flows. (c) Reflected the effects of pension costs of $3,218 million and $2,779 million and employer contributions of $(6,186) million and $(1,600) million for the nine months ended September 30 , 2018 and 2017, respectively. See Note 13. (d) Reflected the effects of other postretirement plans costs (income) of $(143) million and $315 million and employer contributions of $(773) million and $(858) million for the nine months ended September 30 , 2018 and 2017, respectively. See Note 13. (e) Reflected the effects of restructuring and other charges of $2,211 million and $3,017 million and restructuring and other cash expenditures of $(1,333) million and $(1,588) million for the nine months ended September 30 , 2018 and 2017, respectively. Excludes non-cash adjustments reflected as "Depreciation and amortization of property, plant and equipment" or "Amortization of intangible assets" in the Statement of Cash Flows. (f) Included other adjustments to net income, such as write-downs of assets, the impacts of acquisition accounting and changes in other assets and other liabilities classified as operating activities, such as the timing of payments of employee-related liabilities and customer allowances. |
INTERCOMPANY TRANSACTIONS
INTERCOMPANY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
INTERCOMPANY TRANSACTIONS | NOTE 21. INTERCOMPANY TRANSACTIONS Transactions between related companies are made on arm's length terms and are reported in the respective GE and GE Capital columns of our financial statements, but are eliminated in deriving our consolidated financial statements. These 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, including related GE guarantees to GE Capital, • GE Capital financing of GE long-term receivables, 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. Nine months ended September 30 (In millions) 2018 2017 Cash from (used for) operating activities-continuing operations Combined $ (3,631 ) $ 6,104 GE current receivables sold to GE Capital 3,792 941 GE Capital common dividends to GE — (4,016 ) Other reclassifications and eliminations(a) (494 ) 353 Total cash from (used for) operating activities-continuing operations $ (333 ) $ 3,381 Cash from (used for) investing activities-continuing operations Combined $ 6,931 $ 858 GE current receivables sold to GE Capital (5,085 ) (1,358 ) GE Capital long-term loans to GE 5,999 7,271 GE Capital short-term loans to GE 480 (1,329 ) Other reclassifications and eliminations(a) (260 ) (183 ) Total cash from (used for) investing activities-continuing operations $ 8,064 $ 5,259 Cash from (used for) financing activities-continuing operations Combined $ (19,895 ) $ (16,549 ) GE current receivables sold to GE Capital 1,293 417 GE Capital common dividends to GE — 4,016 GE Capital long-term loans to GE (5,999 ) (7,271 ) GE Capital short-term loans to GE (480 ) 1,329 Other reclassifications and eliminations(a) 754 (170 ) Total cash from (used for) financing activities-continuing operations $ (24,326 ) $ (18,228 ) ( a) Includes eliminations of other cash flows activities, including financing of long-term receivables of $851 million and $(432) million in the nine months ended September 30, 2018 and 2017 respectively, and various investments, loans and allocations of GE corporate overhead costs. |
GUARANTOR FINANCIAL INFORMATION
GUARANTOR FINANCIAL INFORMATION | 9 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
GUARANTOR FINANCIAL INFORMATION | NOTE 22. 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 and nine months ended September 30, 2018 and 2017 , Condensed Consolidating Statements of Financial Position as of September 30, 2018 and December 31, 2017 and Condensed Consolidating Statements of Cash Flows for the nine months ended September 30, 2018 and 2017 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 in the comparative periods, this category includes the impact of new accounting policies adopted as described in Note 1 ; and • Consolidated - prepared on a consolidated basis. CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2018 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues Sales of goods and services $ 8,382 $ — $ — $ 39,401 $ (20,319 ) $ 27,465 GE Capital revenues from services — 237 300 2,804 (1,233 ) 2,109 Total revenues 8,382 237 300 42,205 (21,552 ) 29,573 Costs and expenses Interest and other financial charges 1,796 236 725 1,168 (2,697 ) 1,227 Other costs and expenses 9,655 — — 40,331 1,302 51,288 Total costs and expenses 11,451 236 725 41,498 (1,395 ) 52,515 Other income (loss) 1,705 — — 7,503 (9,002 ) 205 Equity in earnings (loss) of affiliates (21,669 ) — 705 16,288 4,675 — Earnings (loss) from continuing operations before income taxes (23,032 ) 2 281 24,499 (24,485 ) (22,736 ) Benefit (provision) for income taxes 224 — — (536 ) 149 (162 ) Earnings (loss) from continuing operations (22,808 ) 1 281 23,963 (24,335 ) (22,899 ) Earnings (loss) from discontinued operations, net of taxes 39 — 18 — (17 ) 39 Net earnings (loss) (22,769 ) 1 298 23,963 (24,353 ) (22,859 ) Less net earnings (loss) attributable to noncontrolling interests — — — (81 ) (9 ) (90 ) Net earnings (loss) attributable to the Company (22,769 ) 1 298 24,044 (24,343 ) (22,769 ) Other comprehensive income (loss) 203 — 12 (751 ) 739 203 Comprehensive income (loss) attributable to the Company $ (22,566 ) $ 1 $ 310 $ 23,293 $ (23,604 ) $ (22,566 ) CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues Sales of goods and services $ 8,025 $ — $ — $ 40,741 $ (20,001 ) $ 28,764 GE Capital revenues from services — 176 209 2,785 (1,272 ) 1,898 Total revenues 8,025 176 209 43,526 (21,274 ) 30,662 Costs and expenses Interest and other financial charges 1,671 168 542 1,279 (2,428 ) 1,232 Other costs and expenses 9,418 — — 40,253 (18,822 ) 30,850 Total costs and expenses 11,089 168 542 41,533 (21,250 ) 32,082 Other income (loss) (1,152 ) — — 25,159 (21,842 ) 2,165 Equity in earnings (loss) of affiliates 5,219 — 1,019 21,123 (27,361 ) — Earnings (loss) from continuing operations before income taxes 1,003 7 686 48,275 (49,226 ) 746 Benefit (provision) for income taxes 470 (1 ) — (59 ) 141 551 Earnings (loss) from continuing operations 1,473 6 686 48,216 (49,085 ) 1,297 Earnings (loss) from discontinued operations, net of taxes (113 ) — (562 ) 4 565 (106 ) Net earnings (loss) 1,360 6 125 48,220 (48,521 ) 1,191 Less net earnings (loss) attributable to noncontrolling interests — — — (21 ) (148 ) (169 ) Net earnings (loss) attributable to the Company 1,360 6 125 48,241 (48,372 ) 1,360 Other comprehensive income (loss) 922 — (187 ) 19,935 (19,749 ) 922 Comprehensive income (loss) attributable to the Company $ 2,282 $ 6 $ (62 ) $ 68,176 $ (68,121 ) $ 2,282 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues Sales of goods and services $ 24,033 $ — $ — $ 118,381 $ (59,983 ) $ 82,432 GE Capital revenues from services — 678 852 6,955 (2,579 ) 5,905 Total revenues and other income (loss) 24,033 678 852 125,336 (62,562 ) 88,337 Costs and expenses Interest and other financial charges 5,043 671 1,889 3,812 (7,609 ) 3,807 Other costs and expenses 29,484 — — 116,846 (39,533 ) 106,797 Total costs and expenses 34,528 672 1,889 120,658 (47,142 ) 110,604 Other income (loss) 3,600 — — 8,600 (10,926 ) 1,275 Equity in earnings (loss) of affiliates (14,635 ) — 1,199 28,378 (14,942 ) — Earnings (loss) from continuing operations before income taxes (21,529 ) 7 161 41,657 (41,289 ) (20,992 ) Benefit (provision) for income taxes 47 (1 ) — (1,098 ) 374 (677 ) Earnings (loss) from continuing operations (21,482 ) 6 161 40,559 (40,914 ) (21,670 ) Earnings (loss) from discontinued operations, net of taxes (1,634 ) — (63 ) 1 62 (1,634 ) Net earnings (loss) (23,116 ) 6 98 40,560 (40,852 ) (23,304 ) Less net earnings (loss) attributable to noncontrolling interests — — — (202 ) 14 (188 ) Net earnings (loss) attributable to the Company (23,116 ) 6 98 40,762 (40,866 ) (23,116 ) Other comprehensive income (loss) 1,174 — (42 ) (2,382 ) 2,425 1,174 Comprehensive income (loss) attributable to the Company $ (21,941 ) $ 6 $ 56 $ 38,380 $ (38,442 ) $ (21,941 ) CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues Sales of goods and services $ 24,897 $ — $ — $ 114,446 $ (58,887 ) $ 80,456 GE Capital revenues from services — 505 583 7,644 (2,548 ) 6,184 Total revenues and other income (loss) 24,897 505 583 122,090 (61,435 ) 86,640 Costs and expenses Interest and other financial charges 3,348 477 1,485 3,582 (5,348 ) 3,545 Other costs and expenses 27,618 — 22 113,764 (57,436 ) 83,968 Total costs and expenses 30,966 478 1,507 117,346 (62,784 ) 87,512 Other income (loss) (1,041 ) — — 57,784 (54,051 ) 2,692 Equity in earnings (loss) of affiliates 8,956 — 1,711 71,787 (82,454 ) — Earnings (loss) from continuing operations before income taxes 1,846 27 787 134,315 (135,155 ) 1,820 Benefit (provision) for income taxes 989 (3 ) 115 (758 ) 351 693 Earnings (loss) from continuing operations 2,835 24 902 133,557 (134,804 ) 2,513 Earnings (loss) from discontinued operations, net of taxes (501 ) — (284 ) 7 287 (490 ) Net earnings (loss) 2,334 24 618 133,564 (134,517 ) 2,023 Less net earnings (loss) attributable to noncontrolling interests — — — (53 ) (258 ) (312 ) Net earnings (loss) attributable to the Company 2,334 24 618 133,618 (134,259 ) 2,334 Other comprehensive income (loss) 4,053 — 463 (7,059 ) 6,596 4,053 Comprehensive income (loss) attributable to the Company $ 6,387 $ 24 $ 1,081 $ 126,559 $ (127,663 ) $ 6,387 CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION SEPTEMBER 30, 2018 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Cash, cash equivalents and restricted cash $ 2,289 $ — $ 15 $ 25,048 $ (420 ) $ 26,932 Investment securities — — — 35,388 (627 ) 34,761 Receivables - net 32,989 17,585 33,060 75,611 (124,797 ) 34,448 Inventories 4,938 — — 21,020 (5,316 ) 20,642 Property, plant and equipment - net 5,724 — — 46,676 (1,763 ) 50,638 Investment in subsidiaries(a) 265,584 — 78,891 726,516 (1,070,991 ) — Goodwill and intangible assets 8,700 — — 85,898 (15,383 ) 79,216 All other assets 8,955 16 — 227,348 (175,980 ) 60,339 Assets of discontinued operations — — — — 4,716 4,716 Total assets $ 329,180 $ 17,601 $ 111,965 $ 1,243,505 $ (1,390,561 ) $ 311,691 Liabilities and equity Short-term borrowings $ 177,698 $ — $ 47,649 $ 12,830 $ (222,971 ) $ 15,206 Accounts payable 7,760 — — 54,412 (46,424 ) 15,748 Other current liabilities 14,858 9 3 31,540 (6,847 ) 39,562 Long-term and non-recourse borrowings 61,253 15,894 35,223 42,668 (55,279 ) 99,760 All other liabilities 36,157 675 153 60,444 (6,239 ) 91,190 Liabilities of discontinued operations — — — — 2,002 2,002 Total Liabilities 297,726 16,579 83,027 201,893 (335,757 ) 263,468 Redeemable noncontrolling interests — — — 288 98 386 GE shareowners' equity 31,454 1,022 28,938 1,040,130 (1,070,090 ) 31,454 Noncontrolling interests — — — 1,195 15,188 16,383 Total equity 31,454 1,022 28,938 1,041,324 (1,054,902 ) 47,837 Total liabilities, redeemable noncontrolling interests and equity $ 329,180 $ 17,601 $ 111,965 $ 1,243,505 $ (1,390,561 ) $ 311,691 (a) Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $7,462 million and net assets of discontinued operations of $3,229 million . CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2017 (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Cash, cash equivalents and restricted cash $ 3,472 $ — $ 3 $ 41,236 $ (743 ) $ 43,967 Investment securities 1 — — 39,809 (1,113 ) 38,696 Receivables - net 50,923 17,316 32,381 87,776 (147,551 ) 40,846 Inventories 4,587 — — 22,215 (7,383 ) 19,419 Property, plant and equipment - net 5,808 — — 48,516 (450 ) 53,874 Investment in subsidiaries(a) 277,929 — 77,488 715,936 (1,071,353 ) — Goodwill and intangible assets 8,014 — — 90,226 6,002 104,242 All other assets 30,737 16 32 236,771 (205,269 ) 62,288 Assets of discontinued operations — — — — 5,912 5,912 Total assets $ 381,472 $ 17,332 $ 109,904 $ 1,282,485 $ (1,421,948 ) $ 369,245 Liabilities and equity Short-term borrowings $ 191,807 $ — $ 46,033 $ 22,603 $ (236,407 ) $ 24,036 Accounts payable 8,126 — — 77,509 (70,462 ) 15,172 Other current liabilities 11,892 8 3 28,218 (34 ) 40,088 Long-term and non-recourse borrowings 71,023 16,632 34,730 55,367 (67,197 ) 110,556 All other liabilities 42,594 475 128 66,293 (7,694 ) 101,797 Liabilities of discontinued operations — — — — 706 706 Total Liabilities 325,442 17,116 80,894 249,991 (381,088 ) 292,355 Redeemable noncontrolling interests — — — 2,627 764 3,391 GE shareowners' equity 56,030 216 29,010 1,028,311 (1,057,537 ) 56,030 Noncontrolling interests — — — 1,556 15,912 17,468 Total equity 56,030 216 29,010 1,029,867 (1,041,625 ) 73,498 Total liabilities, redeemable noncontrolling interests and equity $ 381,472 $ 17,332 $ 109,904 $ 1,282,485 $ (1,421,948 ) $ 369,245 (a) Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $15,225 million and net assets of discontinued operations of $4,318 million . CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2018 (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 $ 12,877 $ (118 ) $ (381 ) $ 43,530 $ (56,241 ) $ (333 ) Cash from (used for) operating activities - discontinued operations (1,634 ) — — 1,533 (1 ) (102 ) Cash from (used for) operating activities 11,243 (118 ) (381 ) 45,063 (56,242 ) (435 ) Cash flows – investing activities Cash from (used for) investing activities – continuing operations (415 ) 189 (1,052 ) (33,458 ) 42,800 8,064 Cash from (used for) investing activities – discontinued operations — — — (224 ) — (224 ) Cash from (used for) investing activities (415 ) 189 (1,052 ) (33,681 ) 42,800 7,840 Cash flows – financing activities Cash from (used for) financing activities – continuing operations (12,011 ) (70 ) 1,445 (27,456 ) 13,765 (24,326 ) Cash from (used for) financing activities – discontinued operations — — — — — — Cash from (used for) financing activities (12,011 ) (70 ) 1,445 (27,456 ) 13,765 (24,326 ) Effect of currency exchange rate changes on cash, cash equivalents and restricted cash — — — (440 ) — (440 ) Increase (decrease) in cash, cash equivalents and restricted cash (1,183 ) — 12 (16,513 ) 324 (17,361 ) Cash, cash equivalents and restricted cash at beginning of year 3,472 — 3 41,993 (743 ) 44,724 Cash, cash equivalents and restricted cash at September 30 2,289 — 15 25,479 (420 ) 27,364 Less cash, cash equivalents and restricted cash of discontinued operations at September 30 — — — 432 — 432 Cash, cash equivalents and restricted cash of continuing operations at September 30 $ 2,289 $ — $ 15 $ 25,048 $ (420 ) $ 26,932 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 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 $ (26,107 ) $ 39 $ (81 ) $ 184,255 $ (154,725 ) $ 3,381 Cash from (used for) operating activities - discontinued operations (501 ) — — 8 3 (490 ) Cash from (used for) operating activities (26,608 ) 39 (81 ) 184,264 (154,722 ) 2,892 Cash flows – investing activities Cash from (used for) investing activities – continuing operations (1,723 ) (39 ) 348 (297,453 ) 304,126 5,259 Cash from (used for) investing activities – discontinued operations — — — (2,515 ) — (2,515 ) Cash from (used for) investing activities (1,723 ) (39 ) 348 (299,968 ) 304,126 2,744 Cash flows – financing activities Cash from (used for) financing activities – continuing operations 26,340 — (265 ) 104,015 (148,319 ) (18,228 ) Cash from (used for) financing activities – discontinued operations — — — 1,905 — 1,905 Cash from (used for) financing activities 26,340 — (265 ) 105,920 (148,319 ) (16,323 ) Effect of currency exchange rate changes on cash, cash equivalents and restricted cash — — — 1,253 — 1,253 Increase (decrease) in cash, cash equivalents and restricted cash (1,991 ) — 4 (8,531 ) 1,084 (9,434 ) Cash, cash equivalents and restricted cash at beginning of year 2,729 — 41 49,204 (1,590 ) 50,384 Cash, cash equivalents and restricted cash at September 30 738 — 45 40,673 (506 ) 40,950 Less cash, cash equivalents and restricted cash of discontinued operations at September 30 — — — 501 — 501 Cash, cash equivalents and restricted cash of continuing operations at September 30 $ 738 $ — $ 45 $ 40,172 $ (506 ) $ 40,449 |
SEGMENT OPERATIONS
SEGMENT OPERATIONS | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT OPERATIONS | SEGMENT OPERATIONS RECONCILIATION OF INDUSTRIAL BACKLOG TO REMAINING PERFORMANCE OBLIGATION September 30, 2018 (In billions) Equipment Services Total Backlog $ 89.0 $ 289.9 $ 378.9 Adjustments (37.4 ) (92.3 ) (129.8 ) Remaining Performance Obligation $ 51.6 $ 197.6 $ 249.2 Backlog represents unfilled customer orders for products and product services (expected life of contract sales for product services). Remaining performance obligation is a defined term under GAAP and represents backlog excluding any purchase orders that provide the customer with the ability to cancel or terminate without incurring a substantive penalty, even if the likelihood of cancellation is remote based on historical experience. We plan to continue reporting backlog as we believe that it is a useful metric for investors, given its relevance to total orders. Adjustments to reported backlog are largely driven by the Aviation business: (1) backlog includes engine contracts for which we have received purchase orders that are cancelable. We have included these in backlog as our historical experience has shown no net cancellations, as any canceled engines are typically moved by the airframer to other program customers; (2) our services backlog includes contracts that are cancelable without substantial penalty, primarily time and materials contracts; (3) backlog includes engines contracted under long-term service agreements, even if the engines have not yet been put into service. These adjustments to reported backlog are expected to be satisfied beyond one year. See Note 9 to the consolidated financial statements for further information. REVENUES AND PROFIT Segment revenues include sales of products and services 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. Subsequent to the Baker Hughes transaction, restructuring and other charges are included in the determination of segment profit for our Oil & Gas segment. 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 other than those applied retrospectively. 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, non-operating benefit costs, income taxes, and preferred stock dividends according to how a particular segment’s management is measured: • Interest and other financial charges, income taxes, non-operating benefit costs and GE preferred stock dividends are excluded in determining segment profit for the industrial segments. • Interest and other financial charges, income taxes, non-operating benefit costs and GE Capital preferred stock dividends are included in determining segment profit (which we sometimes refer to as “net earnings”) for the Capital segment. Other income is included in segment profit for the industrial segments. 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. SUMMARY OF OPERATING SEGMENTS Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 V% 2018 2017 V% Revenues Power $ 5,739 $ 8,527 (33) % $ 20,540 $ 25,868 (21 )% Renewable Energy 2,873 2,507 15 % 6,172 6,587 (6 )% Aviation 7,480 6,696 12 % 22,111 20,003 11 % Oil & Gas 5,670 5,311 7 % 16,609 11,394 46 % Healthcare 4,707 4,710 — % 14,387 13,703 5 % Transportation 932 949 (2) % 2,746 3,006 (9 )% Lighting 385 472 (18) % 1,272 1,407 (10 )% Total industrial segment revenues 27,785 29,171 (5) % 83,837 81,967 2 % Capital 2,473 2,397 3 % 7,075 7,525 (6 )% Total segment revenues 30,258 31,569 (4) % 90,912 89,491 2 % Corporate items and eliminations (685 ) (907 ) 24 % (2,575 ) (2,851 ) 10 % Consolidated revenues $ 29,573 $ 30,662 (4) % $ 88,337 $ 86,640 2 % Segment profit (loss) Power $ (631 ) $ 464 U $ 64 $ 1,896 (97 )% Renewable Energy 60 217 (72) % 220 445 (51 )% Aviation 1,665 1,335 25 % 4,743 3,982 19 % Oil & Gas(a) 180 (57 ) F 110 322 (66 )% Healthcare 861 847 2 % 2,522 2,335 8 % Transportation 162 141 15 % 448 420 7 % Lighting 26 14 86 % 52 41 27 % Total industrial segment profit 2,325 2,961 (21) % 8,157 9,441 (14 )% Capital 19 24 (21) % (403 ) (195 ) U Total segment profit (loss) 2,344 2,985 (21) % 7,753 9,246 (16 )% Corporate items and eliminations (1,546 ) 439 U (2,507 ) (2,083 ) (20 )% Goodwill impairment (21,973 ) (947 ) U (21,973 ) (947 ) U GE interest and other financial charges (662 ) (718 ) 8 % (1,995 ) (1,918 ) (4 )% GE non-operating benefit costs (804 ) (610 ) (32) % (2,178 ) (1,811 ) (20 )% GE benefit (provision) for income taxes (205 ) 281 U (842 ) 93 U Earnings (loss) from continuing operations attributable to GE common shareowners (22,847 ) 1,429 U (21,742 ) 2,579 U Earnings (loss) from discontinued operations, net of taxes 39 (106 ) F (1,634 ) (490 ) U Less net earnings attributable to noncontrolling interests, discontinued operations — (1 ) F — 6 U Earnings (loss) from discontinued operations, net of tax and noncontrolling interest 39 (105 ) F (1,634 ) (497 ) U Consolidated net earnings (loss) attributable to the GE common shareowners $ (22,808 ) $ 1,324 U $ (23,376 ) $ 2,082 U (a) Oil & Gas segment profit excluding restructuring and other charges* was $247 million and $210 million for the three months ended September 30, 2018 and 2017, respectively, and $650 million and $590 million for the nine months ended September 30, 2018 and 2017, respectively. *Non-GAAP Financial Measure |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2017 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 GE 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. |
RECLASSIFICATION | We have reclassified certain prior-period amounts to conform to the current-period presentation. |
ACCOUNTING CHANGES | ACCOUNTING CHANGES On January 1, 2018, we adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers , and the related amendments (ASC 606), which supersedes most previous U.S. GAAP revenue guidance. We elected to adopt the new standard on a retrospective basis to ensure a consistent basis of presentation within our consolidated financial statements for all periods reported. In addition, we elected the practical expedient for contract modifications, which essentially means that the terms of the contract that existed at the beginning of the earliest period presented can be assumed to have been in place since the inception of the contract (i.e., not practical to separately evaluate the effects of all prior contract modifications). ASC 606 requires companies to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time based on when control of goods and services transfers to a customer. As a result of the adoption of the standard, we recorded significant changes in the timing of revenue recognition and in the classification between revenues and costs. The financial statement effect of the adoption was a decrease to our previously reported retained earnings as of January 1, 2016 of $4,240 million and a decrease to our previously reported revenues and earnings (loss) from continuing operations of $2,224 million and $2,668 million , respectively, for the year ended December 31, 2017 and $220 million and $1,182 million , respectively, for the year ended December 31, 2016. The effect on our statement of financial position was principally comprised of changes to our contract assets, inventories, deferred taxes, deferred income and progress collections balances resulting in an $8,317 million decrease to previously reported total assets as of December 31, 2017. As discussed in prior filings, some of the impacts of adopting the ASC 606 are: Long-Term Service Agreements - For our long-term service agreements, we will continue to recognize revenue over time using percentage of completion based on costs incurred relative to total expected costs. We will also continue to record cumulative effect adjustments resulting from changes to our estimated contract billings or costs (excluding those resulting from contract modifications as discussed below). Our accounting will be impacted by various changes in the new revenue standard including (1) accounting for contract modifications and their related impacts and (2) changes in the accounting scope and term of our contracts. • Modifications - Under the new revenue standard, contract modifications will generally be accounted for as if we entered into a new contract, resulting in prospective recognition of changes to our estimates of contract billings and costs. That is, cumulative effect adjustments will generally no longer be recognized in the period that modifications occur. There was limited guidance for accounting for contract modifications under prior U.S. GAAP. As a result, our previous method of accounting for contract modifications was developed with the objective of accounting for the nature of the contract modifications. Generally, contract modifications were accounted for as cumulative effect adjustments, which reflected an update to the contract margin for the impact of the modification (i.e., changes to estimates of future contract billings and costs); however, modifications that substantially changed the economics of the arrangement were effectively accounted for as a new contract. • Scope and term - The new revenue standard provides more prescriptive guidance on identifying the elements of long-term service type contracts that should be accounted for as separate performance obligations. Application of this guidance, which focuses on understanding the nature of the arrangement, including our customers' discretion in purchasing decisions, has resulted in changes to the scope of elements included in our accounting model for long-term service agreements. For example, significant equipment upgrades offered as part of our long-term service agreements will generally be accounted for as separate performance obligations under the new revenue standard. Also, the term of our contracts is now defined as the shorter of the stated term or the term not subject to customer termination without substantive penalty. Over this contract term, we estimate our revenues and related costs, including estimates of fixed and variable payments related to asset utilization and related costs to fulfill our performance obligations. Historically, our accounting for long-term contracts did not reflect an expectation that a contract would be terminated prior to the stated term, particularly when the probability of termination was considered remote. Under prior U.S. GAAP, while termination rights were considered, more emphasis was placed on expected outcomes (i.e., use of best estimates). For example, we used historical experience with similar types of contracts as well as other evidence (e.g., customer intent, economic compulsion and future plans for operating the asset) to determine the contract term for application of our accounting model. These changes to our long-term service agreement accounting have significantly impacted all of our industrial businesses except for Renewable Energy, Healthcare, and Lighting and were some of the drivers in the reduction of the related contract asset balance of $8,255 million as of December 31, 2017. While these contract asset balances have been reduced due to the accounting changes, the economics and cash impact of these contracts remain unchanged. Aviation Commercial Engines - For Aviation Commercial engines our previous method applied contract-specific estimated margin rates, which included the effect of estimated cost improvements over time, to costs incurred to determine the amount of revenue that should be recognized. The new revenue standard will result in a significant change from our previous long-term contract accounting model. While we will continue to recognize revenue at delivery, each engine is now accounted for as a separate performance obligation, reflecting the contractually stated price and manufacturing cost of each engine. The most significant effect of this change is on our new engine launches, where the cost of earlier production units is higher than the cost of later production units driven by expected cost improvements over the life of the engine program, which will generally result in lower earnings or increased losses on our early program engine deliveries to our customers. The effect of this change reduced the related contract asset balance by $1,755 million as of December 31, 2017. All Other Large Equipment - For the remainder of our equipment businesses, the new revenue standard’s emphasis on transfer of control rather than risks and rewards has resulted in an accelerated timing of revenue recognition versus our previous accounting for certain products. While this change impacts all our businesses, our Renewable Energy business was most significantly impacted on a year over year basis with certain of their products recognized at an earlier point in time compared to historical standards. Our policy under ASC 605 was to defer recognition until all risk had transferred to the customer, which was generally upon product installation or customer acceptance. For these equipment contracts, the customer has control of the equipment in advance of the related installation or acceptance event based on our evaluation of the indicators provided in ASC 606. Consistent with our industry peers, certain of our businesses’ products have transitioned either to a point in time or over time recognition based on the nature of the arrangement. This change in timing of revenue had an effect on inventory, contract assets and progress collections to reflect the transfer of control at an earlier point in time. Refer to our Form 8-K filed on April 13, 2018 for supplemental information on the effect of the adoption of ASC 606 to our financial statements. On January 1, 2018, we adopted ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The ASU requires the service cost component of the net periodic costs for pension and postretirement plans to be presented in the same line item in the statement of earnings as other employee-related compensation costs. The non-service related costs are now required to be presented separately from the service cost component. This change to the income statement has been reflected on a retrospective basis and had no effect on continuing or net income. The new standard also added guidance requiring entities to exclude these non-service related costs from capitalization in inventory or other internally-developed assets on a prospective basis, which is not expected to have a significant effect. On January 1, 2018 we adopted ASU No. 2016-18, Statement of Cash Flows: Restricted Cash . The ASU requires the changes in the total of cash and restricted cash to be presented in the statement of cash flows. In addition, when cash and restricted cash are presented on separate lines on the balance sheet, an entity is required to reconcile the totals in the statement of cash flows to the related line items in the balance sheet. While not a direct effect of the adoption of the standard, to simplify the reconciliation of the statement of cash flows to the cash balances presented in our statement of financial position, we have elected to present cash and restricted cash as a single line on the balance sheet, which resulted in an increase of $668 million and $654 million to our previously reported December 31, 2017 and December 31, 2016 cash balances, respectively. The change to our cash balances and cash flows has been reflected on a retrospective basis for all periods presented. On January 1, 2018, we adopted ASU No. 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory . The ASU eliminates the deferral of the tax effects of intra-entity asset transfers other than inventory and was required to be adopted on a modified retrospective basis. As a result, the tax expense from the intercompany sale of assets, other than inventory, and associated changes to deferred taxes will be recognized when the sale occurs even though the pre-tax effects of the transaction have not been recognized as they are eliminated in consolidation. This change to our income tax provision has been reflected as a $464 million cumulative catch up adjustment to increase retained earnings as of January 1, 2018 and is not reflected in periods prior to this date. On January 1, 2018, we adopted ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments . The ASU is required to be reflected on a retrospective basis and provides guidance on the classification of certain cash receipts and cash payments, including requiring cash payments for debt prepayment or debt extinguishment costs be classified as financing activities and payments from a beneficial interest in securitization transactions be classified as investing activities. As part of the adoption, we reclassified $553 million of cash receipts from our beneficial interest in securitized trade receivables within our consolidated statement of cash flows from cash inflows from operating activities to cash inflows from investing activities for the year ended December 31, 2017 (no effect to periods prior to 2017). Our only beneficial interest in securitized trade receivables is the deferred purchase price ("DPP") created by transactions between the Company and the third parties that purchase trade receivables from GE Capital under the Receivables Facility. In our accounting under the new guidance, we determined the non-cash activities and cash flows associated with the DPP in accordance with the contractual terms of the Receivables Facility when computing the amount of DPP that we receive, in part, as consideration for the sale of receivables. In the third quarter of 2018 we learned of an interpretation of the ASU under which there may be a requirement to develop a computation of both non-cash activities and cash flows associated with the DPP that is different from the contractual computation of the DPP we have used in our accounting to date. We are currently evaluating whether a change in our accounting is required that would result in a reclassification between previously reported consolidated cash flows from operating and investing activities and, if so, whether the change would be material. We expect to complete this evaluation in the fourth quarter of 2018, and any revision of our presentation to reflect the reclassification between operating and investing cash flows and our disclosures in Note 4 in subsequent filings would be made on a retrospective basis consistent with the requirements of the adoption of a new accounting policy. The adoption of the ASU did not have an effect on our GE Industrial cash flows, nor do we expect the fourth quarter evaluation to have an effect on our GE Industrial cash flows. On January 1, 2018 we adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU provides guidance related to the recognition and measurement of financial assets and financial liabilities with changes primarily affecting equity investments and disclosure of financial instruments. Under the new guidance, equity investments with readily determinable fair value, except those accounted for under the equity method of accounting, will be measured at fair value with changes in fair value recognized in earnings. The adoption had an insignificant impact to retained earnings and other comprehensive income. Effective January 1, 2018, we voluntarily changed the cost method of the GE U.S. inventories that were previously measured on a last-in, first-out (LIFO) basis to first-in, first-out (FIFO) basis. We believe the FIFO method is a preferable measure for our inventories as it is expected to better reflect the current value of inventory reported in the consolidated statement of financial position, improve the matching of costs of goods sold with related revenue, and provide for greater consistency and uniformity across our operations with respect to the method of inventory valuation. While this change will also require us to make a conforming change for U.S. income tax purposes, all existing GE businesses previously using LIFO are expected to be in a deflationary cost environment due to the manufacturing life cycle of the products and continuous reduction in the manufacturing costs due to better efficiencies, which would significantly decrease the tax benefit that LIFO would otherwise provide. Prior to the change and as reported in our 2017 10-K, LIFO was used for approximately 32% of GE inventories as of December 31, 2017. As required by U.S. GAAP, we have reflected this change in accounting principle on a retrospective basis resulting in changes to the historical periods presented. The retrospective application of the change resulted in a decrease to our January 1, 2016 retained earnings of $105 million and a decrease to our net loss from continuing operations by $28 million , $56 million and $124 million for the three months ended September 30, 2017, nine months ended September 30, 2017 and the year ended December 31, 2017, respectively, and a decrease to our net earnings from continuing operations by $147 million for the year ended December 31, 2016. This change did not affect our previously reported cash flows from operating, investing or financing activities. |
BUSINESSES HELD FOR SALE AND _2
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Financial Information for Assets and Liabilities of Businesses Held for Sale | FINANCIAL INFORMATION FOR ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE (In millions) September 30, 2018 December 31, 2017 Assets Current receivables(a) $ 534 $ 612 Inventories 823 931 Property, plant, and equipment – net 779 931 Goodwill 2,238 1,619 Other intangible assets – net 356 403 Contract assets 736 619 Valuation allowance on disposal group classified as held for sale (b) (962 ) (1,000 ) Other assets 83 49 Assets of businesses held for sale $ 4,588 $ 4,164 Liabilities Accounts payable(a) $ 543 $ 602 Progress collections and deferred income 294 179 Non-current compensation and benefits 229 162 Other liabilities 294 305 Liabilities of businesses held for sale $ 1,360 $ 1,248 (a) Included transactions in our industrial businesses that were made on an arms-length basis with GE Capital, including GE current receivables sold to GE Capital of $ 329 million and $ 366 million at September 30, 2018 and December 31, 2017 respectively, and GE Capital services for material procurement of $39 million at September 30, 2018. These intercompany balances, included within our held for sale businesses, are reported in the GE and GE Capital columns of our financial statements, and are eliminated in deriving our consolidated financial statements. (b) We adjusted the carrying value to fair value less cost to sell for certain held for sale businesses. |
Financial Information for Discontinued Operations | FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Operations Total revenues and other income (loss) $ 152 $ 35 $ (1,316 ) $ 123 Earnings (loss) from discontinued operations before income taxes $ 61 $ (191 ) $ (1,669 ) $ (603 ) Benefit (provision) for income taxes(a) (22 ) 71 32 198 Earnings (loss) from discontinued operations, net of taxes $ 39 $ (120 ) $ (1,637 ) $ (404 ) Disposal Gain (loss) on disposal before income taxes $ — $ 22 $ 4 $ 3 Benefit (provision) for income taxes(a) — (8 ) (1 ) (89 ) Gain (loss) on disposal, net of taxes $ — $ 14 $ 3 $ (86 ) Earnings (loss) from discontinued operations, net of taxes(b)(c) $ 39 $ (106 ) $ (1,634 ) $ (490 ) (a) GE Capital's total tax benefit (provision) for discontinued operations and disposals included current tax benefit (provision) of $(63) million for both the three months ended September 30, 2018 and 2017 , and $60 million and $(386) million for the nine months ended September 30, 2018 and 2017 , respectively, including current U.S. Federal tax benefit (provision) of $(18) million and $1 million for the three months ended September 30, 2018 and 2017 , respectively and $43 million and $(518) million for the nine months ended September 30, 2018 and 2017 , respectively. The deferred tax benefit (provision) was $41 million and $126 million for the three months ended September 30, 2018 and 2017 , respectively and $(29) million and $495 million for the nine months ended September 30, 2018 and 2017, 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 $61 million and $(168) million for the three months ended September 30, 2018 and 2017 , respectively, and $(1,665) million and $(606) million for the nine months ended September 30, 2018 and 2017 , respectively. (In millions) September 30, 2018 December 31, 2017 Assets Cash, cash equivalents and restricted cash $ 432 $ 757 Investment securities 240 647 Deferred income taxes 934 951 Financing receivables held for sale 2,916 3,215 Other assets 194 342 Assets of discontinued operations $ 4,716 $ 5,912 Liabilities Accounts payable 46 51 Borrowings 1 1 Other liabilities 1,955 654 Liabilities of discontinued operations $ 2,002 $ 706 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities | September 30, 2018 December 31, 2017 (In millions) Amortized Gross Gross Estimated Amortized Gross Gross Estimated Debt U.S. corporate $ 21,467 $ 2,363 $ (255 ) $ 23,575 $ 20,104 $ 3,775 $ (35 ) $ 23,843 Non-U.S. corporate 2,100 60 (41 ) 2,120 5,455 86 (13 ) 5,528 State and municipal 3,411 329 (68 ) 3,672 3,775 534 (40 ) 4,269 Mortgage and asset-backed 3,298 45 (63 ) 3,280 2,820 81 (23 ) 2,878 Government and agencies 1,602 56 (43 ) 1,615 1,927 75 (2 ) 2,000 Equity (b) 499 — — 499 166 12 — 178 Total $ 32,378 $ 2,853 $ (469 ) $ 34,761 $ 34,246 $ 4,564 $ (114 ) $ 38,696 (a) Includes $874 million and $569 million of investment securities held by GE at September 30, 2018 and December 31, 2017, respectively, of which $464 million and $141 million are equity securities with readily determinable fair value. (b) These securities have readily determinable fair values and subsequent to the adoption of ASU 2016-01 on January 1, 2018, changes in fair value are recorded to earnings. Net unrealized gains (losses) recorded to earnings related to these securities were $(60) million and $12 million for the three months ended and $204 million and $41 million for the nine months ended September 30, 2018 and 2017, respectively. |
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 $ 942 $ 948 After one year through five years 2,659 2,740 After five years through ten years 6,169 6,580 After ten years 18,871 20,785 |
CURRENT RECEIVABLES (Tables)
CURRENT RECEIVABLES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Receivables | Consolidated(a)(b) GE(c) (In millions) September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Current receivables $ 21,351 $ 25,282 $ 15,801 $ 15,693 Allowance for losses (936 ) (1,073 ) (925 ) (1,055 ) Total $ 20,414 $ 24,209 $ 14,877 $ 14,638 (a) Included GE industrial customer receivables sold to a GE Capital affiliate and recorded on GE Capital’s balance sheet of $ 6,404 million and $ 10,370 million at September 30, 2018 and December 31, 2017 , respectively. The consolidated total included a deferred purchase price receivable of $ 417 million and $ 388 million at September 30, 2018 and December 31, 2017 , respectively, related to our Receivables Facility (described below). (b) In order to manage 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 $ 3,865 million and $ 2,541 million at September 30, 2018 and December 31, 2017 , respectively. Of these balances, $ 2,760 million and $ 1,621 million was sold by GE to GE Capital prior to the sale to third parties at September 30, 2018 and December 31, 2017 , respectively. At September 30, 2018 and December 31, 2017 , our maximum exposure to loss under the limited recourse arrangements is $ 17 million and $ 90 million, respectively. (c) GE current receivables balances at September 30, 2018 and December 31, 2017 , before allowance for losses, included $ 10,535 million and $ 10,452 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) September 30, 2018 December 31, 2017 Loans, net of deferred income $ 12,764 $ 17,404 Investment in financing leases, net of deferred income 2,933 4,614 15,697 22,018 Allowance for losses (34 ) (51 ) Financing receivables – net $ 15,663 $ 21,967 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | (In millions) September 30, 2018 December 31, 2017 Raw materials and work in process $ 11,194 $ 10,131 Finished goods 9,231 8,847 Unbilled shipments 217 441 Total Inventories $ 20,642 $ 19,419 |
GE CAPITAL FINANCING RECEIVAB_2
GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Financing Receivables, Net | Consolidated(a)(b) GE(c) (In millions) September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Current receivables $ 21,351 $ 25,282 $ 15,801 $ 15,693 Allowance for losses (936 ) (1,073 ) (925 ) (1,055 ) Total $ 20,414 $ 24,209 $ 14,877 $ 14,638 (a) Included GE industrial customer receivables sold to a GE Capital affiliate and recorded on GE Capital’s balance sheet of $ 6,404 million and $ 10,370 million at September 30, 2018 and December 31, 2017 , respectively. The consolidated total included a deferred purchase price receivable of $ 417 million and $ 388 million at September 30, 2018 and December 31, 2017 , respectively, related to our Receivables Facility (described below). (b) In order to manage 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 $ 3,865 million and $ 2,541 million at September 30, 2018 and December 31, 2017 , respectively. Of these balances, $ 2,760 million and $ 1,621 million was sold by GE to GE Capital prior to the sale to third parties at September 30, 2018 and December 31, 2017 , respectively. At September 30, 2018 and December 31, 2017 , our maximum exposure to loss under the limited recourse arrangements is $ 17 million and $ 90 million, respectively. (c) GE current receivables balances at September 30, 2018 and December 31, 2017 , before allowance for losses, included $ 10,535 million and $ 10,452 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) September 30, 2018 December 31, 2017 Loans, net of deferred income $ 12,764 $ 17,404 Investment in financing leases, net of deferred income 2,933 4,614 15,697 22,018 Allowance for losses (34 ) (51 ) Financing receivables – net $ 15,663 $ 21,967 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | (In millions) September 30, 2018 December 31, 2017 Original cost $ 87,516 $ 89,607 Less accumulated depreciation and amortization (36,878 ) (35,733 ) Property, plant and equipment – net $ 50,638 $ 53,874 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Changes in Goodwill Balances | CHANGES IN GOODWILL BALANCES (In millions) Balance at Acquisitions Impairments Dispositions, Balance at Power $ 25,269 $ — $ (21,147 ) $ (2,255 ) $ 1,868 Renewable Energy 4,093 — — 13 4,106 Aviation 10,008 — — (38 ) 9,970 Oil & Gas 23,943 16 — 688 24,647 Healthcare 17,306 — — (40 ) 17,266 Transportation 902 — — (17 ) 885 Lighting(a) — — — — — Capital 984 — — — 984 Corporate 1,463 — (827 ) 15 651 Total $ 83,968 $ 16 $ (21,973 ) $ (1,634 ) $ 60,377 (a) Substantial majority of Lighting segment classified as held for sale in the fourth quarter of 2017. |
Other Intangible Assets - Net | OTHER INTANGIBLE ASSETS - NET (In millions) September 30, 2018 December 31, 2017 Intangible assets subject to amortization $ 16,616 $ 18,056 Indefinite-lived intangible assets(a) 2,223 2,217 Total $ 18,838 $ 20,273 (a) Indefinite-lived intangible assets principally comprise trademarks/trade names and in-process research and development. |
Intangible Assets Subject to Amortization | INTANGIBLE ASSETS SUBJECT TO AMORTIZATION September 30, 2018 December 31, 2017 (In millions) Gross carrying amount Accumulated amortization Net Gross carrying amount Accumulated amortization Net Customer-related(a) $ 10,370 $ (3,648 ) $ 6,724 $ 10,614 $ (3,095 ) $ 7,521 Patents and technology 10,651 (4,515 ) 6,136 10,271 (3,899 ) 6,372 Capitalized software 8,189 (5,271 ) 2,919 8,064 (4,974 ) 3,089 Trademarks 1,150 (514 ) 636 1,280 (421 ) 859 Lease valuations 157 (86 ) 70 170 (80 ) 89 All other 231 (100 ) 132 218 (92 ) 125 Total $ 30,748 $ (14,134 ) $ 16,616 $ 30,618 $ (12,561 ) $ 18,056 (a) Balance includes payments made to our customers, primarily within our Aviation business. |
REVENUES (Tables)
REVENUES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenues | EQUIPMENT & SERVICES REVENUES(a) Three months ended September 30 (In millions) 2018 2017 Equipment Revenues Services Revenues Total Revenues Equipment Revenues Services Revenues Total Revenues Power $ 2,299 $ 3,441 $ 5,739 $ 4,468 $ 4,059 $ 8,527 Renewable Energy 2,448 425 2,873 1,957 550 2,507 Aviation 2,834 4,646 7,480 2,425 4,270 6,696 Oil & Gas 2,221 3,449 5,670 2,168 3,143 5,311 Healthcare 2,700 2,006 4,707 2,648 2,062 4,710 Transportation 249 682 932 364 585 949 Lighting 367 18 385 454 18 472 Total Industrial Segment Revenues $ 13,117 $ 14,668 $ 27,785 $ 14,484 $ 14,687 $ 29,171 EQUIPMENT & SERVICES REVENUES(a) Nine months ended September 30 (In millions) 2018 2017 Equipment Revenues Services Revenues Total Revenues Equipment Revenues Services Revenues Total Revenues Power $ 9,336 $ 11,205 $ 20,540 $ 13,282 $ 12,586 $ 25,868 Renewable Energy 4,754 1,418 6,172 5,385 1,201 6,587 Aviation 8,281 13,830 22,111 7,375 12,628 20,003 Oil & Gas 6,638 9,971 16,609 4,732 6,662 11,394 Healthcare 8,119 6,268 14,387 7,605 6,097 13,703 Transportation 820 1,925 2,746 1,373 1,633 3,006 Lighting 1,227 45 1,272 1,361 46 1,407 Total Industrial Segment Revenues $ 39,175 $ 44,662 $ 83,837 $ 41,112 $ 40,854 $ 81,967 (a) Revenues classification consistent with our MD&A defined Services revenue SUB-SEGMENT REVENUES Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Power Gas Power Systems $ 961 $ 1,965 $ 3,897 $ 6,175 Power Services 2,727 2,901 8,737 9,101 Steam Power Systems 425 577 1,413 1,504 Energy Connections 1,486 2,386 6,005 7,072 Other 141 697 489 2,015 Power Revenues $ 5,739 $ 8,527 $ 20,540 $ 25,868 Renewable Energy Onshore Wind $ 2,558 $ 2,187 $ 5,153 $ 5,794 Hydro 197 258 607 641 Offshore Wind 118 62 412 151 Renewable Energy Revenues $ 2,873 $ 2,507 $ 6,172 $ 6,587 Aviation Commercial Engines & Services $ 5,636 $ 4,848 $ 16,443 $ 14,737 Military 898 1,023 2,942 2,891 Systems & Other 946 824 2,726 2,375 Aviation Revenues $ 7,480 $ 6,696 $ 22,111 $ 20,003 Oil & Gas Turbomachinery & Process Solutions (TPS) $ 1,393 $ 1,422 $ 4,231 $ 4,657 Oilfield Services (OFS) 2,993 2,661 8,554 3,101 Oilfield Equipment (OFE) 631 613 1,912 2,011 Digital Solutions 653 615 1,912 1,625 Oil & Gas Revenues $ 5,670 $ 5,311 $ 16,609 $ 11,394 Healthcare Healthcare Systems $ 3,417 $ 3,365 $ 10,241 $ 9,670 Life Sciences 1,140 1,099 3,509 3,273 Healthcare Digital 149 246 636 760 Healthcare Revenues $ 4,707 $ 4,710 $ 14,387 $ 13,703 Transportation Locomotives $ 133 $ 268 $ 481 $ 1,145 Services 564 489 1,600 1,381 Mining 139 106 392 242 Other 96 86 273 239 Transportation Revenues $ 932 $ 949 $ 2,746 $ 3,006 Lighting Current $ 213 $ 259 $ 697 $ 745 GE Lighting 172 213 575 662 Lighting Revenues $ 385 $ 472 $ 1,272 $ 1,407 Total Industrial Segment Revenues $ 27,785 $ 29,171 $ 83,837 $ 81,967 Capital Revenues (a) 2,473 2,397 7,075 7,525 Corporate items and eliminations (685 ) (907 ) (2,575 ) (2,851 ) Consolidated Revenues (a) $ 29,573 $ 30,662 $ 88,337 $ 86,640 (a) Includes $2,425 million and $2,342 million for the three months ended September 30, 2018 and 2017, respectively, and $6,903 million and $7,346 million for the nine months ended September 30, 2018 and 2017, respectively, of revenues at GE Capital outside of the scope of ASC 606. |
CONTRACT & OTHER DEFERRED ASS_2
CONTRACT & OTHER DEFERRED ASSETS AND PROGRESS COLLECTIONS & DEFERRED INCOME (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Contractors [Abstract] | |
Contract with Customer, Asset and Liability | PROGRESS COLLECTIONS & DEFERRED INCOME (In millions) September 30, 2018 December 31, 2017 GE Contract Liabilities Progress collections $ 17,036 $ 18,310 Deferred income 3,811 3,911 Total progress collections & deferred income $ 20,847 $ 22,221 September 30, 2018 (In millions) Power Aviation Oil & Gas Renewable Energy Transportation Other(a) Total GE Revenues in excess of billings Long-term product service agreements(b) $ 3,828 $ 2,295 $ 540 $ — $ 526 $ — $ 7,190 Equipment contract revenues(c) 4,276 444 1,124 297 207 543 6,890 Total contract assets 8,104 2,739 1,664 297 733 543 14,080 Deferred inventory costs(d) 905 698 251 1,277 39 345 3,515 Nonrecurring engineering costs(e) 108 1,896 15 24 101 34 2,179 Customer advances and other 1 1,127 2 — 1 — 1,132 Contract and other deferred assets $ 9,118 $ 6,461 $ 1,933 $ 1,597 $ 874 $ 922 $ 20,905 December 31, 2017 (In millions) Power Aviation Oil & Gas Renewable Energy Transportation Other(a) Total GE Revenues in excess of billings Long-term product service agreements(b) $ 3,357 $ 2,614 $ 517 $ 1 $ 413 $ — $ 6,902 Equipment contract revenues(c) 4,757 280 1,095 295 76 371 6,874 Total contract assets 8,115 2,893 1,612 296 488 371 13,775 Deferred inventory costs(d) 1,304 564 358 950 43 359 3,579 Nonrecurring engineering costs(e) 122 1,696 — — 87 — 1,905 Customer advances and other — 1,098 — — — — 1,098 Contract and other deferred assets $ 9,539 $ 6,251 $ 1,971 $ 1,246 $ 619 $ 729 $ 20,356 (a) Primarily includes our Healthcare segment (b) Long-term product service agreement balances are presented net of related billings in excess of revenues of $4,932 million and $5,498 million at September 30, 2018 and December 31, 2017, respectively. (c) Included in this balance are amounts due from customers for the sale of service upgrades, which we collect through higher fixed or usage-based fees from servicing the equipment under long-term product service agreements. Amounts due from these financing arrangements totaled $869 million and $748 million , as of September 30, 2018 and December 31, 2017, respectively. (d) Represents cost deferral for shipped goods (such as components for wind turbine assembly within our Renewable Energy segment) and labor and overhead costs on time and material service contracts (primarily originating in Power and Aviation) and other costs for which the criteria for revenue recognition has not yet been met. (e) Includes costs incurred prior to production (e.g., requisition engineering) for equipment production contracts, primarily within our Aviation segment, which are allocated ratably to each unit produced. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | (In millions) September 30, 2018 December 31, 2017 Short-term borrowings GE Commercial paper $ 3,006 $ 3,000 Current portion of long-term borrowings 3,768 9,452 Other 1,921 2,095 Total GE short-term borrowings 8,694 14,548 GE Capital Commercial paper 3,011 5,013 Current portion of long-term borrowings(a) 4,423 5,781 Intercompany payable to GE(c) 3,181 8,310 Other 607 497 Total GE Capital short-term borrowings 11,223 19,602 Eliminations (4,711 ) (10,114 ) Total short-term borrowings $ 15,206 $ 24,036 Long-term borrowings GE Senior notes(b) $ 57,118 $ 62,724 Subordinated notes 2,893 2,913 Other 853 1,403 Total GE long-term borrowings 60,863 67,040 GE Capital Senior notes 35,152 40,754 Subordinated notes 161 208 Intercompany payable to GE(c) 20,069 31,533 Other(a) 946 1,118 Total GE Capital long-term borrowings 56,329 73,614 Eliminations(c) (20,132 ) (32,079 ) Total long-term borrowings $ 97,060 $ 108,575 Non-recourse borrowings of consolidated securitization entities(d) $ 2,699 $ 1,980 Total borrowings $ 114,966 $ 134,591 (a) Included $189 million and $946 million of short- and long-term borrowings, respectively, at September 30, 2018 and $348 million and $1,118 million of short- and long-term borrowings, respectively, at December 31, 2017 , of funding secured by aircraft and other collateral. Of this, $236 million and $458 million is non-recourse to GE Capital at September 30, 2018 and December 31, 2017 , respectively. (b) Included $6,181 million and $6,206 million of BHGE senior notes at September 30, 2018 and December 31, 2017 , respectively. Total BHGE borrowings were $6,357 million and $7,225 million at September 30, 2018 and December 31, 2017 , respectively. (c) Included a reduction of $480 million and zero for short-term intercompany loans from GE Capital to GE at September 30, 2018 and December 31, 2017 , respectively, and a reduction of $13,269 million and $7,271 million for long-term intercompany loans from GE Capital to GE at September 30, 2018 and December 31, 2017 , respectively. These loans bear the right of offset against amounts owed under the assumed debt agreement and can be prepaid by GE at any time in whole or in part, without premium or penalty. Excluding intercompany loans, the total short- and long-term assumed debt was $3,661 million and $33,338 million at September 30, 2018 and $8,310 million and $38,804 million at December 31, 2017 , respectively. (d) Included $424 million and $621 million of current portion of long-term borrowings at September 30, 2018 and December 31, 2017 , respectively. See Note 17 for further information. |
INVESTMENT CONTRACTS, INSURAN_2
INVESTMENT CONTRACTS, INSURANCE LIABILITIES AND INSURANCE ANNUITY BENEFITS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Insurance [Abstract] | |
Schedule of Insurance and Investment Contract Liabilities | (In millions) September 30, 2018 December 31, 2017 Future policy benefit reserves Long-term care insurance contracts $ 16,119 $ 16,522 Structured settlement annuities with life contingencies and other contracts 9,450 9,448 Shadow adjustments(a) 2,409 4,582 27,978 30,552 Investment contracts 2,433 2,569 Claim reserves(b) 5,277 5,094 Unearned premiums and other 382 372 36,070 38,587 Eliminations (495 ) (451 ) Total $ 35,575 $ 38,136 (a) To the extent that unrealized gains on debt securities supporting our insurance contracts would result in a premium deficiency should those gains be realized, an increase in future policy benefit reserves is recorded, with an offsetting amount recorded in Other comprehensive income, net of taxes. (b) Includes $3,816 million and $3,590 million related to long-term care insurance contracts and $368 million and $364 million related to short-duration contracts, net of eliminations, at September 30, 2018 and December 31, 2017, respectively. |
POSTRETIREMENT BENEFIT PLANS (T
POSTRETIREMENT BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [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 September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Service cost for benefits earned $ 232 $ 267 $ 667 $ 810 Prior service cost amortization 36 73 108 218 Expected return on plan assets (803 ) (847 ) (2,443 ) (2,545 ) Interest cost on benefit obligations 666 715 1,999 2,144 Net actuarial loss amortization 947 702 2,841 2,109 Curtailment loss 46 (a) — 46 (a) 43 (b) Pension plans cost $ 1,124 $ 910 $ 3,218 $ 2,779 (a) Curtailment loss resulting from a BHGE decision to no longer participate in the GE Pension Plan after December 31, 2018. (b) Curtailment loss resulting from the sale of Industrial Solutions business within our Power segment. Other pension plans Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Service cost for benefits earned $ 85 $ 156 $ 279 $ 430 Prior service credit amortization (2 ) (2 ) (4 ) (4 ) Expected return on plan assets (342 ) (324 ) (1,059 ) (919 ) Interest cost on benefit obligations 150 158 462 445 Net actuarial loss amortization 78 110 243 320 Settlement gain — — (6 ) (a) — Curtailment loss — 11 (b) — 11 (b) Pension plans cost (income) $ (31 ) $ 109 $ (85 ) $ 283 (a) Settlement gain resulting from the sale of the Industrial Solutions business within our Power segment. (b) Curtailment loss resulting from a Canadian manufacturing plant closure. EFFECT ON OPERATIONS OF PRINCIPAL RETIREE BENEFIT PLANS Principal retiree benefit plans Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Service cost for benefits earned $ 19 $ 25 $ 48 $ 77 Prior service credit amortization (58 ) (42 ) (172 ) (128 ) Expected return on plan assets (8 ) (9 ) (22 ) (27 ) Interest cost on benefit obligations 49 55 147 168 Net actuarial gain amortization (19 ) (20 ) (59 ) (61 ) Curtailment loss — — — 3 (a) Retiree benefit plans cost (income) $ (17 ) $ 9 $ (58 ) $ 32 (a) Curtailment loss resulting from the sale of the Industrial Solutions business within our Power segment. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Unrecognized Tax Benefits | UNRECOGNIZED TAX BENEFITS (In millions) September 30, 2018 December 31, 2017 Unrecognized tax benefits $ 4,908 $ 5,449 Portion that, if recognized, would reduce tax expense and effective tax rate(a) 3,771 3,626 Accrued interest on unrecognized tax benefits 886 810 Accrued penalties on unrecognized tax benefits 188 158 Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months 0-1,300 0-1,100 Portion that, if recognized, would reduce tax expense and effective tax rate(a) 0-1,200 0-900 (a) Some portion of such reduction may be reported as discontinued operations. |
SHAREOWNERS_ EQUITY (Tables)
SHAREOWNERS’ EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of Shareowners' Equity | Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Preferred stock issued $ 6 $ 6 $ 6 $ 6 Common stock issued $ 702 $ 702 $ 702 $ 702 Accumulated other comprehensive income (loss) Beginning balance $ (13,432 ) $ (15,457 ) $ (14,404 ) $ (18,588 ) Other comprehensive income (loss) before reclassifications Investment securities - net of deferred taxes of $(22), $45, $26 and $204(a) (74 ) 54 67 363 Currency translation adjustments (CTA) - net of deferred taxes of $(24), $(407), $17 and $(648) (639 ) 697 (1,856 ) 1,437 Cash flow hedges - net of deferred taxes of $2, $55, $(6) and $53 (8 ) 175 (35 ) 239 Benefit plans - net of deferred taxes of $16, $(49), $71 and $84 73 (132 ) 199 368 Total $ (648 ) $ 793 $ (1,625 ) $ 2,407 Reclassifications from other comprehensive income Investment securities - net of deferred taxes of $5, $(17), $3 and $(78)(b) 17 (32 ) 1 (150 ) Currency translation on dispositions - net of deferred taxes of $(1), $2, $(1) and $(538)(b) 7 (196 ) 385 392 Cash flow hedges - net of deferred taxes of $2, $(28), $9 and $(37)(c) (1 ) (75 ) — (129 ) Benefit plans - net of deferred taxes of $230, $275 $666 and $833(d) 789 556 2,322 1,667 Total $ 812 $ 253 $ 2,708 $ 1,780 Other comprehensive income (loss) 164 1,046 1,082 4,184 Less other comprehensive income (loss) attributable to noncontrolling interests (39 ) 124 (92 ) 131 Other comprehensive income (loss), net, attributable to GE 203 922 1,174 4,053 Ending Balance $ (13,229 ) $ (14,535 ) $ (13,229 ) $ (14,535 ) Other capital Beginning balance 37,352 37,468 37,384 37,224 Gains (losses) on treasury stock dispositions and other (41 ) 1,169 (73 ) 1,413 Ending Balance $ 37,311 $ 38,637 $ 37,311 $ 38,637 Retained earnings Beginning balance(e) 114,913 130,271 117,245 133,856 Net earnings (loss) attributable to the Company (22,769 ) 1,360 (23,116 ) 2,334 Dividends and other transactions with shareowners (1,086 ) (2,121 ) (3,395 ) (6,514 ) Redemption value adjustment on redeemable noncontrolling interests(f) (191 ) (70 ) (367 ) (236 ) Other changes(g) — — 500 — Ending Balance $ 90,867 $ 129,440 $ 90,867 $ 129,440 Common stock held in treasury Beginning balance (84,471 ) (85,617 ) (84,902 ) (83,038 ) Purchases (55 ) (108 ) (198 ) (3,728 ) Dispositions 324 526 897 1,567 Ending Balance $ (84,202 ) $ (85,199 ) $ (84,202 ) $ (85,199 ) Total equity GE shareowners' equity balance 31,454 69,051 31,454 69,051 Noncontrolling interests balance 16,383 17,701 16,383 17,701 Total equity balance at September 30 $ 47,837 $ 86,751 $ 47,837 $ 86,751 (a) Included adjustments of $234 million and $9 million for the three months ended September 30, 2018 and 2017 and $1,705 million and $(180) million for the nine months ended September 30, 2018 and 2017, respectively, to investment contracts, insurance liabilities and annuity benefits in our run-off insurance operations to reflect the effects that would have been recognized had the related unrealized investment securities holding gains been realized. See Note 12 for further information. (b) Primarily recorded in "GE Capital Revenues from Services" and "Other income" and income taxes in "Benefit (provision) for income taxes" in our consolidated Statement of Earnings (Loss). Currency translation gains and losses on dispositions included zero for the three and nine months ended September 30, 2018, and zero and $510 million for the three and nine months ended September 30, 2017, respectively, in earnings (loss) from discontinued operations, net of taxes. (c) Cash flow hedges primarily includes impact of foreign exchange contracts and gains and losses on interest rate derivatives, primarily recorded in GE Capital revenue from services, interest and other financial charges and other costs and expenses. See Note 17 for further information. (d) Primarily includes amortization of actuarial gains and losses, amortization of prior service cost and curtailment gain and loss. These components are included in the computation of net periodic pension cost. See Note 13 for further information. (e) January 1, 2018 amount has been adjusted to reflect retrospective adoption of ASC 606 $(8,061) million and preferable accounting change from LIFO to FIFO $(377) million . (f) Amount of redemption value adjustment on redeemable noncontrolling interest shown net of deferred taxes. (g) On January 1, 2018, we adopted several new accounting standards on a modified retrospective basis. Cumulative impact of these changes was recorded in the opening retained earnings and it increased our retained earnings by $500 million , primarily due to an increase of $464 million related to ASU 2016-16. See Note 1 for further information. |
Changes to Noncontrolling Interests | CHANGES TO NONCONTROLLING INTERESTS Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Beginning balance $ 16,685 $ 1,634 $ 17,468 $ 1,663 Net earnings (loss) 54 (114 ) 105 (94 ) Dividends (96 ) (99 ) (260 ) (130 ) Other(a) (260 ) 16,279 (930 ) 16,261 Ending balance at September 30(b) $ 16,383 $ 17,701 $ 16,383 $ 17,701 (a) Included impact of AOCI, acquisitions, dispositions and BHGE stock repurchases. (b) Included $15,192 million and $16,158 million attributable to the BHGE Class A Shareholders at September 30, 2018 and 2017, respectively. |
Changes to Redeemable Noncontrolling Interests | CHANGES TO REDEEMABLE NONCONTROLLING INTERESTS Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Beginning balance $ 3,376 $ 3,185 $ 3,391 $ 3,017 Net earnings (loss) (144 ) (56 ) (293 ) (218 ) Dividends — (12 ) (19 ) (22 ) Redemption value adjustment 203 70 401 236 Other(a) (3,049 ) 246 (3,094 ) 420 Balance at September 30 $ 386 $ 3,433 $ 386 $ 3,433 (a) In 2018, included $(3,028) million reclassified to GE current liabilities related to Alstom joint ventures. |
EARNINGS PER SHARE INFORMATION
EARNINGS PER SHARE INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three months ended September 30 2018 2017 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Amounts attributable to the Company: Consolidated Earnings from continuing operations $ (22,812 ) $ (22,812 ) $ 1,459 $ 1,459 Preferred stock dividends (39 ) (39 ) (36 ) (36 ) Earnings from continuing operations attributable to $ (22,851 ) $ (22,851 ) $ 1,423 $ 1,423 Loss from discontinued operations 36 36 (109 ) (109 ) Net earnings attributable to GE common $ (22,812 ) $ (22,812 ) $ 1,318 $ 1,318 Average equivalent shares Shares of GE common stock outstanding 8,694 8,694 8,665 8,665 Employee compensation-related shares (including stock options) — — 67 — Total average equivalent shares 8,694 8,694 8,732 8,665 Per-share amounts Earnings from continuing operations $ (2.63 ) $ (2.63 ) $ 0.16 $ 0.16 Loss from discontinued operations — — (0.01 ) (0.01 ) Net earnings (2.62 ) (2.62 ) 0.15 0.15 Nine months ended September 30 2018 2017 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Amounts attributable to the Company: Consolidated Earnings from continuing operations $ (21,489 ) $ (21,489 ) $ 2,815 $ 2,815 Preferred stock dividends (260 ) (260 ) (252 ) (252 ) Earnings from continuing operations attributable to $ (21,749 ) $ (21,749 ) $ 2,563 $ 2,563 Loss from discontinued operations (1,642 ) (1,642 ) (507 ) (507 ) Net earnings attributable to GE common $ (23,383 ) $ (23,383 ) $ 2,066 $ 2,066 Average equivalent shares Shares of GE common stock outstanding 8,689 8,689 8,689 8,689 Employee compensation-related shares (including stock options) — — 85 — Total average equivalent shares 8,689 8,689 8,774 8,689 Per-share amounts Earnings from continuing operations $ (2.50 ) $ (2.50 ) $ 0.29 $ 0.30 Loss from discontinued operations (0.19 ) (0.19 ) (0.06 ) (0.06 ) Net earnings (2.69 ) (2.69 ) 0.24 0.24 (a) Our unvested restricted stock unit awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities. For the three and nine months ended September 30, 2018 and 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. (b) Included an insignificant amount of dividend equivalents in each of the periods presented. |
FINANCIAL INSTRUMENTS AND NON_2
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Estimated Fair Value of Assets and Liabilities | The following table provides information about assets and liabilities not carried at fair value. The table excludes finance leases, equity investments without readily determinable fair value 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. September 30, 2018 December 31, 2017 (In millions) Carrying Estimated Carrying Estimated GE Assets Notes receivable $ 680 $ 674 $ 700 $ 700 Liabilities Borrowings(a)(b) 32,558 31,809 34,473 35,416 Borrowings (debt assumed)(a)(c) 37,000 40,300 47,114 53,502 GE Capital Assets Loans 12,744 12,737 17,363 17,331 Other commercial mortgages 1,783 1,811 1,489 1,566 Loans held for sale 1,326 1,328 3,274 3,274 Liabilities Borrowings(a)(d)(e)(f) 47,000 49,460 55,353 60,415 Investment contracts 2,434 2,712 2,569 2,996 (a) See Note 11. (b) Included $ 194 million and $ 217 million of accrued interest in estimated fair value at September 30, 2018 and December 31, 2017 , respectively. (c) Included $ 397 million and $ 696 million of accrued interest in estimated fair value at September 30, 2018 and December 31, 2017 , respectively. (d) Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at September 30, 2018 and December 31, 2017 would have been reduced by $ 1,016 million and $ 1,754 million, respectively. (e) Included $ 670 million and $ 731 million of accrued interest in estimated fair value at September 30, 2018 and December 31, 2017 , respectively. (f) Excluded $ 23,250 million and $ 39,844 million of net intercompany payable to GE at September 30, 2018 and December 31, 2017 , respectively. |
Loan Commitments | NOTIONAL AMOUNTS OF LOAN COMMITMENTS (In millions) September 30, 2018 December 31, 2017 Ordinary course of business lending commitments(a) $ 724 $ 1,105 Unused revolving credit lines 50 198 (a) Excluded investment commitments of $ 1,415 million and $ 677 million at September 30, 2018 and December 31, 2017 , respectively. |
Fair Value of Derivative Assets | The table below provides additional information about how derivatives are reflected in our financial statements. Derivative assets and liabilities are recorded at fair value exclusive of interest earned or owed on interest rate derivatives, which is presented separately on our Statement of Financial Position. Cash collateral and securities held as collateral represent assets that have been provided by our derivative counterparties as security for amounts they owe us (derivatives that are in an asset position). FAIR VALUE OF DERIVATIVES September 30, 2018 December 31, 2017 (In millions) Assets Liabilities Assets Liabilities Derivatives accounted for as hedges Interest rate contracts $ 1,278 $ 350 $ 1,862 $ 148 Currency exchange contracts 177 118 160 70 1,455 468 2,021 218 Derivatives not accounted for as hedges Interest rate contracts 32 (1 ) 93 8 Currency exchange contracts 674 1,283 1,111 2,043 Other contracts 80 135 139 91 787 1,418 1,343 2,143 Gross derivatives recognized in statement of financial position Gross derivatives 2,242 1,885 3,364 2,361 Gross accrued interest 228 (31 ) 469 (38 ) 2,471 1,855 3,833 2,323 Amounts offset in statement of financial position Netting adjustments(a) (978 ) (977 ) (1,457 ) (1,456 ) Cash collateral(b) (1,152 ) (338 ) (1,529 ) (578 ) (2,129 ) (1,315 ) (2,986 ) (2,034 ) Net derivatives recognized in statement of financial position Net derivatives 342 540 847 289 Amounts not offset in statement of financial position Securities held as collateral(c) (144 ) — (405 ) — Net amount $ 198 $ 540 $ 441 $ 289 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 September 30, 2018 and December 31, 2017 , the cumulative adjustment for non-performance risk was zero and $(1) million , respectively. (b) Excluded excess cash collateral received and posted of $50 million and $420 million at September 30, 2018 , respectively, and $10 million and $255 million at December 31, 2017 , respectively. Excess cash collateral posted includes initial margin for cleared trades. (c) Excluded excess securities collateral received of zero and $16 million at September 30, 2018 and December 31, 2017 , respectively. |
Fair Value of Derivative Liabilities | The table below provides additional information about how derivatives are reflected in our financial statements. Derivative assets and liabilities are recorded at fair value exclusive of interest earned or owed on interest rate derivatives, which is presented separately on our Statement of Financial Position. Cash collateral and securities held as collateral represent assets that have been provided by our derivative counterparties as security for amounts they owe us (derivatives that are in an asset position). FAIR VALUE OF DERIVATIVES September 30, 2018 December 31, 2017 (In millions) Assets Liabilities Assets Liabilities Derivatives accounted for as hedges Interest rate contracts $ 1,278 $ 350 $ 1,862 $ 148 Currency exchange contracts 177 118 160 70 1,455 468 2,021 218 Derivatives not accounted for as hedges Interest rate contracts 32 (1 ) 93 8 Currency exchange contracts 674 1,283 1,111 2,043 Other contracts 80 135 139 91 787 1,418 1,343 2,143 Gross derivatives recognized in statement of financial position Gross derivatives 2,242 1,885 3,364 2,361 Gross accrued interest 228 (31 ) 469 (38 ) 2,471 1,855 3,833 2,323 Amounts offset in statement of financial position Netting adjustments(a) (978 ) (977 ) (1,457 ) (1,456 ) Cash collateral(b) (1,152 ) (338 ) (1,529 ) (578 ) (2,129 ) (1,315 ) (2,986 ) (2,034 ) Net derivatives recognized in statement of financial position Net derivatives 342 540 847 289 Amounts not offset in statement of financial position Securities held as collateral(c) (144 ) — (405 ) — Net amount $ 198 $ 540 $ 441 $ 289 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 September 30, 2018 and December 31, 2017 , the cumulative adjustment for non-performance risk was zero and $(1) million , respectively. (b) Excluded excess cash collateral received and posted of $50 million and $420 million at September 30, 2018 , respectively, and $10 million and $255 million at December 31, 2017 , respectively. Excess cash collateral posted includes initial margin for cleared trades. (c) Excluded excess securities collateral received of zero and $16 million at September 30, 2018 and December 31, 2017 , respectively. |
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 September 30 Nine months ended September 30 (In millions) Effect on hedging instrument Effect on underlying Effect on earnings (a) Effect on hedging instrument Effect on underlying Effect on earnings 2018 Cash flow hedges $ (6 ) $ 7 $ 1 $ (25 ) $ 27 $ 2 Fair value hedges (362 ) 333 (29 ) (1,285 ) 1,200 (85 ) Net investment hedges(b) (56 ) 62 6 157 (144 ) 14 Economic hedges(c) (677 ) 456 (221 ) (1,460 ) 1,126 (334 ) Total $ (243 ) $ (403 ) 2017 Cash flow hedges $ 225 $ (225 ) $ — $ 281 $ (281 ) $ — Fair value hedges (148 ) 103 (45 ) (430 ) 267 (162 ) Net investment hedges(b) (1,016 ) 1,020 4 (2,065 ) 2,082 17 Economic hedges(c) 663 (920 ) (257 ) 1,304 (1,876 ) (572 ) Total $ (298 ) $ (717 ) The amounts in the table above generally do not include associated derivative accruals in income or expense. (a) For cash flow and fair value hedges, the effect on earnings is primarily related to ineffectiveness. For net investment hedges, the effect on earnings is related to ineffectiveness and spot-forward differences. (b) Both non-derivatives and derivatives hedging instruments are included. The carrying value of non-derivative instruments designated as net investment hedges was $(12,894) million and $(13,213) million at September 30, 2018 and 2017, respectively. Total pre-tax reclassifications from CTA to gain (loss) was $(7) million and $78 million at September 30, 2018 and 2017, respectively. Total pre-tax reclassifications from CTA to gain (loss) included zero and $78 million recorded in discontinued operations at September 30, 2018 and 2017, respectively. (c) Net effect is substantially offset by the change in fair value of the hedged item that will affect earnings in future periods. |
Cash Flow Hedge Activity | The table below summarizes this activity by hedging instrument. CASH FLOW HEDGE ACTIVITY Gain (loss) recognized in AOCI Gain (loss) reclassified for the three months ended September 30 for the three months ended September 30 (In millions) 2018 2017 2016 2018 2017 2016 Interest rate contracts $ (4 ) $ 1 $ 1 $ (4 ) $ (6 ) $ (12 ) Currency exchange contracts (3 ) 224 — 2 110 (46 ) Commodity contracts — — 1 — — — Total(a) $ (7 ) $ 225 $ 2 $ (2 ) $ 104 $ (57 ) CASH FLOW HEDGE ACTIVITY Gain (loss) recognized in AOCI Gain (loss) reclassified for the nine months ended September 30 for the nine months ended September 30 (In millions) 2018 2017 2016 2018 2017 2016 Interest rate contracts $ (11 ) $ 3 $ 32 $ (10 ) $ (21 ) $ (67 ) Currency exchange contracts (16 ) 278 (76) 1 189 (59 ) Commodity contracts — — 1 — — (3 ) Total(a) $ (27 ) $ 281 $ (43 ) $ (9 ) $ 167 $ (128 ) (a) Gain (loss) is recorded in "GE Capital revenues from services", "Interest and other financial charges", "Sales of goods", "Cost of goods sold" and "Other costs and expenses" in our Statement of Earnings when reclassified. |
Schedule of Non-Recurring Fair Value Amounts | The following table represents non-recurring fair value amounts (as measured at the time of the adjustment) for those assets remeasured to fair value on a non-recurring basis during the fiscal year and still held at September 30, 2018 and December 31, 2017. Remeasured during Remeasured during (In millions) Level 2 Level 3 Level 2 Level 3 Financing receivables $ — $ 8 $ — $ 1,541 Equity securities without readily determinable fair value and equity method investments 479 1,212 — 2,076 Long-lived assets — 413 177 591 Goodwill $ — $ 1,653 $ — $ — Total $ 479 $ 3,286 $ 177 $ 4,208 |
Schedule of Fair Value Adjustments | The following table represents the fair value adjustments to assets measured at fair value on a non-recurring basis and still held at September 30, 2018 and 2017 . Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Financing receivables $ — $ (1 ) $ (2 ) $ (1 ) Equity securities without readily determinable fair value and equity method investments (240 ) (58 ) (441 ) (89 ) Long-lived assets (865 ) (671 ) (975 ) (712 ) Goodwill (21,973 ) $ (947 ) $ (21,973 ) $ (947 ) Total $ (23,079 ) $ (1,676 ) $ (23,391 ) $ (1,748 ) |
Schedule of Level 3 Measurements | LEVEL 3 MEASUREMENTS - SIGNIFICANT UNOBSERVABLE INPUTS (Dollars in millions) Fair value Valuation technique Unobservable inputs Range September 30, 2018 Non-recurring fair value measurements Equity securities without readily determinable fair value and equity method investments $ 769 Income approach, market comparables Discount rate(a) 6.5%-50%(8.9)% Long-lived assets 352 Income approach Discount rate(a) 2.9%-40%(22.3)% December 31, 2017 Non-recurring fair value measurements Financing receivables $ 1,532 Income approach Discount rate(a) 3.2%-16.5% (10%) Equity securities without readily determinable fair value and equity method investments 2,037 Income approach Discount rate(a) 5.0%-50.0% (7.7%) Long-lived assets 554 Income approach Discount rate(a) 2.7%-18.0% (7.3%) (a) Discount rates are determined based on inputs that market participants would use when pricing investments, including credit and liquidity risk. An increase in the discount rate would result in a decrease in the fair value. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entities [Abstract] | |
Schedule of Assets and Liabilities of Consolidated VIEs | 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) Trade receivables(b) Other(c) Total September 30, 2018 Assets Financing receivables, net $ — $ — $ 1,540 $ 951 $ 2,491 Current receivables 83 457 — — 540 Other assets 455 862 138 1,086 2,540 Total $ 538 $ 1,318 $ 1,678 $ 2,037 $ 5,570 Liabilities Borrowings $ 46 $ — — $ 938 $ 984 Non-recourse borrowings — 585 1,037 — 1,622 Other liabilities 212 644 575 584 2,015 Total $ 257 $ 1,229 1,612 $ 1,522 $ 4,620 December 31, 2017 Assets Financing receivables, net $ — $ — — $ 792 $ 792 Current receivables 59 570 — — 630 Investment securities — — — 918 918 Other assets 586 1,182 — 1,920 3,688 Total $ 646 $ 1,752 — $ 3,630 $ 6,028 Liabilities Borrowings $ 39 $ — — $ 1,027 $ 1,066 Non-recourse borrowings — 669 — 16 685 Other liabilities 345 1,021 — 1,525 2,891 Total $ 384 $ 1,690 — $ 2,568 $ 4,642 (a) Two funding vehicles established to purchase customer notes receivable from GE, one of which is partially funded by third-party debt. (b) In the third quarter of 2018, a funding vehicle was established to provide alternative funding for trade receivables. (c) In January 2018, ownership of the equity shares of Electric Insurance Company ("EIC") were distributed to GE Capital by a bankruptcy. trustee. We have previously reported EIC as a VIE because we received a 100% beneficial interest in the assets, liabilities and operations of EIC, related to an interim distribution in 2001. As EIC is now a consolidated voting interest entity we removed EIC from our VIE disclosure. In 2017, $1,470 million of assets and $959 million of liabilities were included related to EIC . |
COMMITMENTS, GUARANTEES, PROD_2
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranties | An analysis of changes in the liability for product warranties follows. Nine months ended September 30 (In millions) 2018 2017 Balance at January 1 $ 2,348 $ 1,929 Current-year provisions 788 606 Expenditures (735 ) (598 ) Other changes(a) 134 255 Balance as of September 30 $ 2,534 $ 2,191 ( a) Primarily includes effect of currency exchange and acquisitions. |
Rollforward of the Reserve | ROLLFORWARD OF THE RESERVE RELATED TO REPURCHASE CLAIMS Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 2018 2017 Balance, beginning of period $ 294 $ 636 $ 416 $ 626 Provision (9 ) 11 (4 ) 21 Claim resolutions / rescissions (40 ) — (167 ) — Balance, end of period $ 245 $ 647 $ 245 $ 647 |
CASH FLOWS INFORMATION (Tables)
CASH FLOWS INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flows Information | Certain supplemental information related to our cash flows is shown below. GE Nine months ended September 30 (In millions) 2018 2017 All other operating activities (Gains) losses on purchases and sales of business interests(a) $ (476 ) $ (1,955 ) Other gains on investing activities (436 ) (68 ) Income taxes(b) (803 ) (897 ) Principal pension plans(c) (2,968 ) 1,179 Other postretirement benefit plans(d) (916 ) (543 ) Restructuring and other charges(e) 878 1,429 Change in accruals for contract related costs (792 ) (59 ) Other(f) (802 ) (1,245 ) $ (6,315 ) $ (2,160 ) All other investing activities Derivative settlements (net) $ (436 ) $ (1,420 ) Investments in intangible assets (net) (472 ) (376 ) Other 154 (159 ) $ (754 ) $ (1,955 ) Net dispositions (purchases) of GE shares for treasury Open market purchases under share repurchase program $ (180 ) $ (3,394 ) Other purchases (18 ) (58 ) Dispositions 192 831 $ (6 ) $ (2,620 ) (a) Included pre-tax gains on sales of businesses reclassified to "Proceeds from principal business dispositions" within Cash flows from investing activities of $(681) million for Value-Based Care and $(298) million for Industrial Solutions, partially offset by pre-tax losses of $511 million on planned business disposals in the nine months ended September 30, 2018 , and included pre-tax gains on sales of businesses of $(1,885) million for Water in the nine months ended September 30, 2017 . See Note 2. (b) Reflected the effects of current tax expense of $479 million and $909 million and net cash paid during the year for income taxes of $(1,283) million and $(1,806) million for the nine months ended September 30 , 2018 and 2017, respectively. Cash flows effects of deferred tax provisions (benefits) are shown separately within Cash flows from operating activities in the Statement of Cash Flows. (c) Reflected the effects of pension costs of $3,218 million and $2,779 million and employer contributions of $(6,186) million and $(1,600) million for the nine months ended September 30 , 2018 and 2017, respectively. See Note 13. (d) Reflected the effects of other postretirement plans costs (income) of $(143) million and $315 million and employer contributions of $(773) million and $(858) million for the nine months ended September 30 , 2018 and 2017, respectively. See Note 13. (e) Reflected the effects of restructuring and other charges of $2,211 million and $3,017 million and restructuring and other cash expenditures of $(1,333) million and $(1,588) million for the nine months ended September 30 , 2018 and 2017, respectively. Excludes non-cash adjustments reflected as "Depreciation and amortization of property, plant and equipment" or "Amortization of intangible assets" in the Statement of Cash Flows. (f) Included other adjustments to net income, such as write-downs of assets, the impacts of acquisition accounting and changes in other assets and other liabilities classified as operating activities, such as the timing of payments of employee-related liabilities and customer allowances. |
INTERCOMPANY TRANSACTIONS (Tabl
INTERCOMPANY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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. Nine months ended September 30 (In millions) 2018 2017 Cash from (used for) operating activities-continuing operations Combined $ (3,631 ) $ 6,104 GE current receivables sold to GE Capital 3,792 941 GE Capital common dividends to GE — (4,016 ) Other reclassifications and eliminations(a) (494 ) 353 Total cash from (used for) operating activities-continuing operations $ (333 ) $ 3,381 Cash from (used for) investing activities-continuing operations Combined $ 6,931 $ 858 GE current receivables sold to GE Capital (5,085 ) (1,358 ) GE Capital long-term loans to GE 5,999 7,271 GE Capital short-term loans to GE 480 (1,329 ) Other reclassifications and eliminations(a) (260 ) (183 ) Total cash from (used for) investing activities-continuing operations $ 8,064 $ 5,259 Cash from (used for) financing activities-continuing operations Combined $ (19,895 ) $ (16,549 ) GE current receivables sold to GE Capital 1,293 417 GE Capital common dividends to GE — 4,016 GE Capital long-term loans to GE (5,999 ) (7,271 ) GE Capital short-term loans to GE (480 ) 1,329 Other reclassifications and eliminations(a) 754 (170 ) Total cash from (used for) financing activities-continuing operations $ (24,326 ) $ (18,228 ) ( a) Includes eliminations of other cash flows activities, including financing of long-term receivables of $851 million and $(432) million in the nine months ended September 30, 2018 and 2017 respectively, and various investments, loans and allocations of GE corporate overhead costs. |
GUARANTOR FINANCIAL INFORMATI_2
GUARANTOR FINANCIAL INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information 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 SEPTEMBER 30, 2018 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues Sales of goods and services $ 8,382 $ — $ — $ 39,401 $ (20,319 ) $ 27,465 GE Capital revenues from services — 237 300 2,804 (1,233 ) 2,109 Total revenues 8,382 237 300 42,205 (21,552 ) 29,573 Costs and expenses Interest and other financial charges 1,796 236 725 1,168 (2,697 ) 1,227 Other costs and expenses 9,655 — — 40,331 1,302 51,288 Total costs and expenses 11,451 236 725 41,498 (1,395 ) 52,515 Other income (loss) 1,705 — — 7,503 (9,002 ) 205 Equity in earnings (loss) of affiliates (21,669 ) — 705 16,288 4,675 — Earnings (loss) from continuing operations before income taxes (23,032 ) 2 281 24,499 (24,485 ) (22,736 ) Benefit (provision) for income taxes 224 — — (536 ) 149 (162 ) Earnings (loss) from continuing operations (22,808 ) 1 281 23,963 (24,335 ) (22,899 ) Earnings (loss) from discontinued operations, net of taxes 39 — 18 — (17 ) 39 Net earnings (loss) (22,769 ) 1 298 23,963 (24,353 ) (22,859 ) Less net earnings (loss) attributable to noncontrolling interests — — — (81 ) (9 ) (90 ) Net earnings (loss) attributable to the Company (22,769 ) 1 298 24,044 (24,343 ) (22,769 ) Other comprehensive income (loss) 203 — 12 (751 ) 739 203 Comprehensive income (loss) attributable to the Company $ (22,566 ) $ 1 $ 310 $ 23,293 $ (23,604 ) $ (22,566 ) CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues Sales of goods and services $ 8,025 $ — $ — $ 40,741 $ (20,001 ) $ 28,764 GE Capital revenues from services — 176 209 2,785 (1,272 ) 1,898 Total revenues 8,025 176 209 43,526 (21,274 ) 30,662 Costs and expenses Interest and other financial charges 1,671 168 542 1,279 (2,428 ) 1,232 Other costs and expenses 9,418 — — 40,253 (18,822 ) 30,850 Total costs and expenses 11,089 168 542 41,533 (21,250 ) 32,082 Other income (loss) (1,152 ) — — 25,159 (21,842 ) 2,165 Equity in earnings (loss) of affiliates 5,219 — 1,019 21,123 (27,361 ) — Earnings (loss) from continuing operations before income taxes 1,003 7 686 48,275 (49,226 ) 746 Benefit (provision) for income taxes 470 (1 ) — (59 ) 141 551 Earnings (loss) from continuing operations 1,473 6 686 48,216 (49,085 ) 1,297 Earnings (loss) from discontinued operations, net of taxes (113 ) — (562 ) 4 565 (106 ) Net earnings (loss) 1,360 6 125 48,220 (48,521 ) 1,191 Less net earnings (loss) attributable to noncontrolling interests — — — (21 ) (148 ) (169 ) Net earnings (loss) attributable to the Company 1,360 6 125 48,241 (48,372 ) 1,360 Other comprehensive income (loss) 922 — (187 ) 19,935 (19,749 ) 922 Comprehensive income (loss) attributable to the Company $ 2,282 $ 6 $ (62 ) $ 68,176 $ (68,121 ) $ 2,282 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues Sales of goods and services $ 24,033 $ — $ — $ 118,381 $ (59,983 ) $ 82,432 GE Capital revenues from services — 678 852 6,955 (2,579 ) 5,905 Total revenues and other income (loss) 24,033 678 852 125,336 (62,562 ) 88,337 Costs and expenses Interest and other financial charges 5,043 671 1,889 3,812 (7,609 ) 3,807 Other costs and expenses 29,484 — — 116,846 (39,533 ) 106,797 Total costs and expenses 34,528 672 1,889 120,658 (47,142 ) 110,604 Other income (loss) 3,600 — — 8,600 (10,926 ) 1,275 Equity in earnings (loss) of affiliates (14,635 ) — 1,199 28,378 (14,942 ) — Earnings (loss) from continuing operations before income taxes (21,529 ) 7 161 41,657 (41,289 ) (20,992 ) Benefit (provision) for income taxes 47 (1 ) — (1,098 ) 374 (677 ) Earnings (loss) from continuing operations (21,482 ) 6 161 40,559 (40,914 ) (21,670 ) Earnings (loss) from discontinued operations, net of taxes (1,634 ) — (63 ) 1 62 (1,634 ) Net earnings (loss) (23,116 ) 6 98 40,560 (40,852 ) (23,304 ) Less net earnings (loss) attributable to noncontrolling interests — — — (202 ) 14 (188 ) Net earnings (loss) attributable to the Company (23,116 ) 6 98 40,762 (40,866 ) (23,116 ) Other comprehensive income (loss) 1,174 — (42 ) (2,382 ) 2,425 1,174 Comprehensive income (loss) attributable to the Company $ (21,941 ) $ 6 $ 56 $ 38,380 $ (38,442 ) $ (21,941 ) CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues Sales of goods and services $ 24,897 $ — $ — $ 114,446 $ (58,887 ) $ 80,456 GE Capital revenues from services — 505 583 7,644 (2,548 ) 6,184 Total revenues and other income (loss) 24,897 505 583 122,090 (61,435 ) 86,640 Costs and expenses Interest and other financial charges 3,348 477 1,485 3,582 (5,348 ) 3,545 Other costs and expenses 27,618 — 22 113,764 (57,436 ) 83,968 Total costs and expenses 30,966 478 1,507 117,346 (62,784 ) 87,512 Other income (loss) (1,041 ) — — 57,784 (54,051 ) 2,692 Equity in earnings (loss) of affiliates 8,956 — 1,711 71,787 (82,454 ) — Earnings (loss) from continuing operations before income taxes 1,846 27 787 134,315 (135,155 ) 1,820 Benefit (provision) for income taxes 989 (3 ) 115 (758 ) 351 693 Earnings (loss) from continuing operations 2,835 24 902 133,557 (134,804 ) 2,513 Earnings (loss) from discontinued operations, net of taxes (501 ) — (284 ) 7 287 (490 ) Net earnings (loss) 2,334 24 618 133,564 (134,517 ) 2,023 Less net earnings (loss) attributable to noncontrolling interests — — — (53 ) (258 ) (312 ) Net earnings (loss) attributable to the Company 2,334 24 618 133,618 (134,259 ) 2,334 Other comprehensive income (loss) 4,053 — 463 (7,059 ) 6,596 4,053 Comprehensive income (loss) attributable to the Company $ 6,387 $ 24 $ 1,081 $ 126,559 $ (127,663 ) $ 6,387 |
Condensed Consolidating Statement of Financial Position | CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION SEPTEMBER 30, 2018 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Cash, cash equivalents and restricted cash $ 2,289 $ — $ 15 $ 25,048 $ (420 ) $ 26,932 Investment securities — — — 35,388 (627 ) 34,761 Receivables - net 32,989 17,585 33,060 75,611 (124,797 ) 34,448 Inventories 4,938 — — 21,020 (5,316 ) 20,642 Property, plant and equipment - net 5,724 — — 46,676 (1,763 ) 50,638 Investment in subsidiaries(a) 265,584 — 78,891 726,516 (1,070,991 ) — Goodwill and intangible assets 8,700 — — 85,898 (15,383 ) 79,216 All other assets 8,955 16 — 227,348 (175,980 ) 60,339 Assets of discontinued operations — — — — 4,716 4,716 Total assets $ 329,180 $ 17,601 $ 111,965 $ 1,243,505 $ (1,390,561 ) $ 311,691 Liabilities and equity Short-term borrowings $ 177,698 $ — $ 47,649 $ 12,830 $ (222,971 ) $ 15,206 Accounts payable 7,760 — — 54,412 (46,424 ) 15,748 Other current liabilities 14,858 9 3 31,540 (6,847 ) 39,562 Long-term and non-recourse borrowings 61,253 15,894 35,223 42,668 (55,279 ) 99,760 All other liabilities 36,157 675 153 60,444 (6,239 ) 91,190 Liabilities of discontinued operations — — — — 2,002 2,002 Total Liabilities 297,726 16,579 83,027 201,893 (335,757 ) 263,468 Redeemable noncontrolling interests — — — 288 98 386 GE shareowners' equity 31,454 1,022 28,938 1,040,130 (1,070,090 ) 31,454 Noncontrolling interests — — — 1,195 15,188 16,383 Total equity 31,454 1,022 28,938 1,041,324 (1,054,902 ) 47,837 Total liabilities, redeemable noncontrolling interests and equity $ 329,180 $ 17,601 $ 111,965 $ 1,243,505 $ (1,390,561 ) $ 311,691 (a) Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $7,462 million and net assets of discontinued operations of $3,229 million . CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2017 (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Cash, cash equivalents and restricted cash $ 3,472 $ — $ 3 $ 41,236 $ (743 ) $ 43,967 Investment securities 1 — — 39,809 (1,113 ) 38,696 Receivables - net 50,923 17,316 32,381 87,776 (147,551 ) 40,846 Inventories 4,587 — — 22,215 (7,383 ) 19,419 Property, plant and equipment - net 5,808 — — 48,516 (450 ) 53,874 Investment in subsidiaries(a) 277,929 — 77,488 715,936 (1,071,353 ) — Goodwill and intangible assets 8,014 — — 90,226 6,002 104,242 All other assets 30,737 16 32 236,771 (205,269 ) 62,288 Assets of discontinued operations — — — — 5,912 5,912 Total assets $ 381,472 $ 17,332 $ 109,904 $ 1,282,485 $ (1,421,948 ) $ 369,245 Liabilities and equity Short-term borrowings $ 191,807 $ — $ 46,033 $ 22,603 $ (236,407 ) $ 24,036 Accounts payable 8,126 — — 77,509 (70,462 ) 15,172 Other current liabilities 11,892 8 3 28,218 (34 ) 40,088 Long-term and non-recourse borrowings 71,023 16,632 34,730 55,367 (67,197 ) 110,556 All other liabilities 42,594 475 128 66,293 (7,694 ) 101,797 Liabilities of discontinued operations — — — — 706 706 Total Liabilities 325,442 17,116 80,894 249,991 (381,088 ) 292,355 Redeemable noncontrolling interests — — — 2,627 764 3,391 GE shareowners' equity 56,030 216 29,010 1,028,311 (1,057,537 ) 56,030 Noncontrolling interests — — — 1,556 15,912 17,468 Total equity 56,030 216 29,010 1,029,867 (1,041,625 ) 73,498 Total liabilities, redeemable noncontrolling interests and equity $ 381,472 $ 17,332 $ 109,904 $ 1,282,485 $ (1,421,948 ) $ 369,245 (a) Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $15,225 million and net assets of discontinued operations of $4,318 million . |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2018 (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 $ 12,877 $ (118 ) $ (381 ) $ 43,530 $ (56,241 ) $ (333 ) Cash from (used for) operating activities - discontinued operations (1,634 ) — — 1,533 (1 ) (102 ) Cash from (used for) operating activities 11,243 (118 ) (381 ) 45,063 (56,242 ) (435 ) Cash flows – investing activities Cash from (used for) investing activities – continuing operations (415 ) 189 (1,052 ) (33,458 ) 42,800 8,064 Cash from (used for) investing activities – discontinued operations — — — (224 ) — (224 ) Cash from (used for) investing activities (415 ) 189 (1,052 ) (33,681 ) 42,800 7,840 Cash flows – financing activities Cash from (used for) financing activities – continuing operations (12,011 ) (70 ) 1,445 (27,456 ) 13,765 (24,326 ) Cash from (used for) financing activities – discontinued operations — — — — — — Cash from (used for) financing activities (12,011 ) (70 ) 1,445 (27,456 ) 13,765 (24,326 ) Effect of currency exchange rate changes on cash, cash equivalents and restricted cash — — — (440 ) — (440 ) Increase (decrease) in cash, cash equivalents and restricted cash (1,183 ) — 12 (16,513 ) 324 (17,361 ) Cash, cash equivalents and restricted cash at beginning of year 3,472 — 3 41,993 (743 ) 44,724 Cash, cash equivalents and restricted cash at September 30 2,289 — 15 25,479 (420 ) 27,364 Less cash, cash equivalents and restricted cash of discontinued operations at September 30 — — — 432 — 432 Cash, cash equivalents and restricted cash of continuing operations at September 30 $ 2,289 $ — $ 15 $ 25,048 $ (420 ) $ 26,932 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 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 $ (26,107 ) $ 39 $ (81 ) $ 184,255 $ (154,725 ) $ 3,381 Cash from (used for) operating activities - discontinued operations (501 ) — — 8 3 (490 ) Cash from (used for) operating activities (26,608 ) 39 (81 ) 184,264 (154,722 ) 2,892 Cash flows – investing activities Cash from (used for) investing activities – continuing operations (1,723 ) (39 ) 348 (297,453 ) 304,126 5,259 Cash from (used for) investing activities – discontinued operations — — — (2,515 ) — (2,515 ) Cash from (used for) investing activities (1,723 ) (39 ) 348 (299,968 ) 304,126 2,744 Cash flows – financing activities Cash from (used for) financing activities – continuing operations 26,340 — (265 ) 104,015 (148,319 ) (18,228 ) Cash from (used for) financing activities – discontinued operations — — — 1,905 — 1,905 Cash from (used for) financing activities 26,340 — (265 ) 105,920 (148,319 ) (16,323 ) Effect of currency exchange rate changes on cash, cash equivalents and restricted cash — — — 1,253 — 1,253 Increase (decrease) in cash, cash equivalents and restricted cash (1,991 ) — 4 (8,531 ) 1,084 (9,434 ) Cash, cash equivalents and restricted cash at beginning of year 2,729 — 41 49,204 (1,590 ) 50,384 Cash, cash equivalents and restricted cash at September 30 738 — 45 40,673 (506 ) 40,950 Less cash, cash equivalents and restricted cash of discontinued operations at September 30 — — — 501 — 501 Cash, cash equivalents and restricted cash of continuing operations at September 30 $ 738 $ — $ 45 $ 40,172 $ (506 ) $ 40,449 |
SEGMENT OPERATIONS (Tables)
SEGMENT OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Summary of Operating Segments | SUMMARY OF OPERATING SEGMENTS Three months ended September 30 Nine months ended September 30 (In millions) 2018 2017 V% 2018 2017 V% Revenues Power $ 5,739 $ 8,527 (33) % $ 20,540 $ 25,868 (21 )% Renewable Energy 2,873 2,507 15 % 6,172 6,587 (6 )% Aviation 7,480 6,696 12 % 22,111 20,003 11 % Oil & Gas 5,670 5,311 7 % 16,609 11,394 46 % Healthcare 4,707 4,710 — % 14,387 13,703 5 % Transportation 932 949 (2) % 2,746 3,006 (9 )% Lighting 385 472 (18) % 1,272 1,407 (10 )% Total industrial segment revenues 27,785 29,171 (5) % 83,837 81,967 2 % Capital 2,473 2,397 3 % 7,075 7,525 (6 )% Total segment revenues 30,258 31,569 (4) % 90,912 89,491 2 % Corporate items and eliminations (685 ) (907 ) 24 % (2,575 ) (2,851 ) 10 % Consolidated revenues $ 29,573 $ 30,662 (4) % $ 88,337 $ 86,640 2 % Segment profit (loss) Power $ (631 ) $ 464 U $ 64 $ 1,896 (97 )% Renewable Energy 60 217 (72) % 220 445 (51 )% Aviation 1,665 1,335 25 % 4,743 3,982 19 % Oil & Gas(a) 180 (57 ) F 110 322 (66 )% Healthcare 861 847 2 % 2,522 2,335 8 % Transportation 162 141 15 % 448 420 7 % Lighting 26 14 86 % 52 41 27 % Total industrial segment profit 2,325 2,961 (21) % 8,157 9,441 (14 )% Capital 19 24 (21) % (403 ) (195 ) U Total segment profit (loss) 2,344 2,985 (21) % 7,753 9,246 (16 )% Corporate items and eliminations (1,546 ) 439 U (2,507 ) (2,083 ) (20 )% Goodwill impairment (21,973 ) (947 ) U (21,973 ) (947 ) U GE interest and other financial charges (662 ) (718 ) 8 % (1,995 ) (1,918 ) (4 )% GE non-operating benefit costs (804 ) (610 ) (32) % (2,178 ) (1,811 ) (20 )% GE benefit (provision) for income taxes (205 ) 281 U (842 ) 93 U Earnings (loss) from continuing operations attributable to GE common shareowners (22,847 ) 1,429 U (21,742 ) 2,579 U Earnings (loss) from discontinued operations, net of taxes 39 (106 ) F (1,634 ) (490 ) U Less net earnings attributable to noncontrolling interests, discontinued operations — (1 ) F — 6 U Earnings (loss) from discontinued operations, net of tax and noncontrolling interest 39 (105 ) F (1,634 ) (497 ) U Consolidated net earnings (loss) attributable to the GE common shareowners $ (22,808 ) $ 1,324 U $ (23,376 ) $ 2,082 U (a) Oil & Gas segment profit excluding restructuring and other charges* was $247 million and $210 million for the three months ended September 30, 2018 and 2017, respectively, and $650 million and $590 million for the nine months ended September 30, 2018 and 2017, respectively. *Non-GAAP Financial Measure |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounting Changes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Retained earnings | $ 90,867 | $ 90,867 | $ 117,245 | ||||||||
Earnings (loss) from continuing operations | (22,899) | $ 1,297 | (21,670) | $ 2,513 | |||||||
Assets | [1] | (311,691) | (311,691) | (369,245) | |||||||
Cash and restricted cash | $ 26,932 | [2] | 40,449 | 26,932 | [2] | 40,449 | $ 43,967 | [2] | |||
Cash flows from operating activities | 435 | (2,892) | |||||||||
Cash flows from investing activities | $ 7,840 | 2,744 | |||||||||
Percentage of LIFO inventory | 32.00% | ||||||||||
ASU 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Retained earnings | $ 8,061 | $ (4,240) | |||||||||
Revenues | 2,224 | $ 220 | |||||||||
Earnings (loss) from continuing operations | (2,668) | (1,182) | |||||||||
Assets | 8,317 | ||||||||||
ASU 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Services | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Contract asset | 8,255 | ||||||||||
ASU 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Aviation Commercial Engines | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Contract asset | 1,755 | ||||||||||
ASU 2016-18 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Cash and restricted cash | 668 | 654 | |||||||||
ASU 2016-16 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Retained earnings | 464 | ||||||||||
ASU 2016-15 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Cash flows from operating activities | 553 | ||||||||||
Cash flows from investing activities | 553 | ||||||||||
ASU 2015-11 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Retained earnings | 377 | $ (105) | |||||||||
Earnings (loss) from continuing operations | $ 28 | $ 56 | $ 124 | $ 147 | |||||||
[1] | Our consolidated assets at September 30, 2018 included total assets of $5,248 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 $2,986 million within continuing operations and assets of discontinued operations of $109 million. Our consolidated liabilities at September 30, 2018 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 $(1,622) million within continuing operations. See Note 18. | ||||||||||
[2] | Includes restricted cash of $454 million and $668 million at September 30, 2018 and December 31, 2017, respectively. |
BUSINESSES HELD FOR SALE AND _3
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Nov. 13, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from disposal of business | $ 5,564 | $ 3,030 | ||
Assets planned to be disposed of | $ 20,000 | |||
Disposed of by Sale | Capital | Energy Financial Services | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from disposal of business | $ 2,000 | |||
Pre-tax gain (loss) on disposal | 285 | |||
Held for Sale, Not Discontinued Operation | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Pre-tax gain (loss) on disposal | (565) | |||
Cumulative pre-tax loss on the planned disposals | 1,598 | 1,598 | ||
Cumulative loss on planned disposals, net of tax | 1,489 | 1,489 | ||
Held for Sale, Not Discontinued Operation | Power | Industrial Solutions | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Pre-tax gain (loss) on disposal | 458 | |||
Consideration received | 3,439 | 3,439 | ||
Liquidation of valuation allowance | $ 546 | $ 546 |
BUSINESSES HELD FOR SALE AND _4
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS - Financial Information for Assets and Liabilities of Businesses Held for Sale (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Assets | $ 4,716 | $ 5,912 |
Liabilities | ||
Liabilities | 2,002 | 706 |
GE Capital | ||
Assets | ||
Assets | 4,716 | 5,912 |
Liabilities | ||
Liabilities | 1,925 | 683 |
GE Capital | Affiliated Entity | ||
Assets | ||
Current receivables | 329 | 366 |
Liabilities | ||
Accounts payable(a) | 39 | |
Held for Sale, Not Discontinued Operation | ||
Assets | ||
Current receivables | 534 | 612 |
Inventories | 823 | 931 |
Property, plant, and equipment – net | 779 | 931 |
Goodwill | 2,238 | 1,619 |
Other intangible assets – net | 356 | 403 |
Contract assets | 736 | 619 |
Valuation allowance on disposal group classified as held for sale | (962) | (1,000) |
Other assets | 83 | 49 |
Assets | 4,588 | 4,164 |
Liabilities | ||
Accounts payable(a) | 543 | 602 |
Progress collections and deferred income | 294 | 179 |
Non-current compensation and benefits | 229 | 162 |
Other liabilities | 294 | 305 |
Liabilities | $ 1,360 | $ 1,248 |
BUSINESSES HELD FOR SALE AND _5
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS - Financial Information for Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Disposal | |||||
Earnings (loss) from discontinued operations, net of taxes | $ 39 | $ (106) | $ (1,634) | $ (490) | |
Assets | |||||
Assets | 4,716 | 4,716 | $ 5,912 | ||
Liabilities | |||||
Liabilities | 2,002 | 2,002 | 706 | ||
GE Capital | |||||
Disposal | |||||
Earnings (loss) from discontinued operations, net of taxes | 40 | (106) | (1,579) | (494) | |
Assets | |||||
Assets | 4,716 | 4,716 | 5,912 | ||
Liabilities | |||||
Liabilities | 1,925 | 1,925 | 683 | ||
Discontinued Operations | |||||
Operations | |||||
Total revenues and other income (loss) | 152 | 35 | (1,316) | 123 | |
Earnings (loss) from discontinued operations before income taxes | 61 | (191) | (1,669) | (603) | |
Benefit (provision) for income taxes | (22) | 71 | 32 | 198 | |
Earnings (loss) from discontinued operations, net of taxes | 39 | (120) | (1,637) | (404) | |
Disposal | |||||
Gain (loss) on disposal before income taxes | 0 | 22 | 4 | 3 | |
Benefit (provision) for income taxes | 0 | (8) | (1) | (89) | |
Gain (loss) on disposal, net of taxes | 0 | 14 | 3 | (86) | |
Earnings (loss) from discontinued operations, net of taxes | 39 | (106) | (1,634) | (490) | |
Earnings (loss) from discontinued operations | 61 | (168) | (1,665) | (606) | |
Assets | |||||
Cash, cash equivalents and restricted cash | 432 | 432 | 757 | ||
Investment securities | 240 | 240 | 647 | ||
Deferred income taxes | 934 | 934 | 951 | ||
Financing receivables held for sale | 2,916 | 2,916 | 3,215 | ||
Other assets | 194 | 194 | 342 | ||
Assets | 4,716 | 4,716 | 5,912 | ||
Liabilities | |||||
Accounts payable | 46 | 46 | 51 | ||
Borrowings | 1 | 1 | 1 | ||
Other liabilities | 1,955 | 1,955 | 654 | ||
Liabilities | 2,002 | 2,002 | $ 706 | ||
Discontinued Operations | GE Capital | |||||
Disposal | |||||
Current tax benefit (provision) for discontinued operations and disposals | (63) | 63 | 60 | (386) | |
Deferred tax benefit (provision) | 41 | 126 | (29) | 495 | |
Discontinued Operations | GE Capital | U.S. Federal | |||||
Disposal | |||||
Current tax benefit (provision) for discontinued operations and disposals | $ (18) | $ 1 | $ 43 | $ (518) |
INVESTMENT SECURITIES - Schedul
INVESTMENT SECURITIES - Schedule of Investment Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | $ 34,246 | |||||
Gross unrealized gains | 4,564 | |||||
Gross unrealized losses | (114) | |||||
Estimated fair value | 38,696 | |||||
Gross unrealized gains | $ 2,853 | $ 2,853 | ||||
Gross unrealized losses | (469) | (469) | ||||
Equity securities | 499 | 499 | ||||
Amortized cost | 32,378 | 32,378 | ||||
Estimated fair value | 34,761 | 34,761 | ||||
Investment securities | 34,761 | 34,761 | 38,696 | |||
Net unrealized gains (losses) recorded to earnings | (60) | $ 12 | 204 | $ 41 | ||
GE | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Equity securities | 464 | 464 | 141 | |||
Investment securities | [1] | 874 | 874 | 569 | ||
U.S. corporate | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 20,104 | |||||
Gross unrealized gains | 3,775 | |||||
Gross unrealized losses | (35) | |||||
Estimated fair value | 23,843 | |||||
Amortized cost | 21,467 | 21,467 | ||||
Gross unrealized gains | 2,363 | 2,363 | ||||
Gross unrealized losses | (255) | (255) | ||||
Estimated fair value | 23,575 | 23,575 | ||||
Non-U.S. corporate | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 5,455 | |||||
Gross unrealized gains | 86 | |||||
Gross unrealized losses | (13) | |||||
Estimated fair value | 5,528 | |||||
Amortized cost | 2,100 | 2,100 | ||||
Gross unrealized gains | 60 | 60 | ||||
Gross unrealized losses | (41) | (41) | ||||
Estimated fair value | 2,120 | 2,120 | ||||
State and municipal | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 3,775 | |||||
Gross unrealized gains | 534 | |||||
Gross unrealized losses | (40) | |||||
Estimated fair value | 4,269 | |||||
Amortized cost | 3,411 | 3,411 | ||||
Gross unrealized gains | 329 | 329 | ||||
Gross unrealized losses | (68) | (68) | ||||
Estimated fair value | 3,672 | 3,672 | ||||
Mortgage and asset-backed | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 2,820 | |||||
Gross unrealized gains | 81 | |||||
Gross unrealized losses | (23) | |||||
Estimated fair value | 2,878 | |||||
Amortized cost | 3,298 | 3,298 | ||||
Gross unrealized gains | 45 | 45 | ||||
Gross unrealized losses | (63) | (63) | ||||
Estimated fair value | 3,280 | 3,280 | ||||
Government and agencies | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 1,927 | |||||
Gross unrealized gains | 75 | |||||
Gross unrealized losses | (2) | |||||
Estimated fair value | 2,000 | |||||
Amortized cost | 1,602 | 1,602 | ||||
Gross unrealized gains | 56 | 56 | ||||
Gross unrealized losses | (43) | (43) | ||||
Estimated fair value | $ 1,615 | $ 1,615 | ||||
Equity | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost | 166 | |||||
Gross unrealized gains | 12 | |||||
Gross unrealized losses | 0 | |||||
Estimated fair value | $ 178 | |||||
[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 - Narrati
INVESTMENT SECURITIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Estimated fair value, less than 12 months | $ 8,872 | $ 8,872 | $ 3,093 | ||
Gross unrealized losses, less than 12 months | (261) | (261) | (23) | ||
Estimated fair value, 12 months or more | 2,457 | 2,457 | 4,949 | ||
Gross unrealized losses, 12 months or more | (208) | (208) | (91) | ||
Gross realized gains on debt securities | 10 | $ 32 | 32 | $ 141 | |
Gross realized losses | (32) | (3) | (35) | (7) | |
Proceeds from investment securities sales and early redemptions by issuers | 1,483 | $ 659 | 2,189 | $ 2,433 | |
Equity securities without readily determinable fair values | 571 | 571 | |||
Upward adjustment | 6 | 49 | |||
Impairment loss | (22) | (37) | |||
Level 3 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investments | $ 4,176 | $ 4,176 | $ 4,413 |
INVESTMENT SECURITIES - Contrac
INVESTMENT SECURITIES - Contractual Maturities (Details) $ in Millions | Sep. 30, 2018USD ($) |
Amortized cost | |
Within one year | $ 942 |
After one year through five years | 2,659 |
After five years through ten years | 6,169 |
After ten years | 18,871 |
Estimated fair value | |
Within one year | 948 |
After one year through five years | 2,740 |
After five years through ten years | 6,580 |
After ten years | $ 20,785 |
CURRENT RECEIVABLES - Schedule
CURRENT RECEIVABLES - Schedule of Receivables (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Current receivables | $ 21,351 | $ 25,282 | |
Allowance for losses | (936) | (1,073) | |
Total | 20,414 | 24,209 | |
Outstanding balance of current receivables | 3,865 | 2,541 | |
GE Capital | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Outstanding balance of current receivables | 2,760 | 1,621 | |
Receivables Facility | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Deferred purchase price receivable | 417 | 388 | |
Outstanding balance of current receivables | 3,096 | 3,222 | |
Maximum exposure to under limited recourse arrangements | 17 | 90 | |
GE | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Current receivables | 15,801 | 15,693 | |
Allowance for losses | (925) | (1,055) | |
Total | [1] | 14,877 | 14,638 |
GE Industrial customer receivables sold to a GE Capital affiliate | 6,404 | 10,370 | |
GE current receivables balances, before allowance for losses | $ 10,535 | $ 10,452 | |
[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 - Receivabl
CURRENT RECEIVABLES - Receivables Facility (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||
Cash collections on previously sold current receivables | $ 16,831,000,000 | ||||
Transferred receivables that remain outstanding | $ 3,865,000,000 | 3,865,000,000 | $ 2,541,000,000 | ||
Revenues | 29,573,000,000 | $ 30,662,000,000 | 88,337,000,000 | $ 86,640,000,000 | |
Purchasing Entities | |||||
Related Party Transaction [Line Items] | |||||
Purchase of newly originated current receivables | 16,452,000,000 | ||||
Increase in DPP obligation | 152,000,000 | ||||
GE Capital | Servicing Fees | |||||
Related Party Transaction [Line Items] | |||||
Revenues | 25,000,000 | ||||
Affiliated Entity | GE Industrial customer receivables sold to GE Capital | |||||
Related Party Transaction [Line Items] | |||||
Current receivables sold to GE Capital | 16,705,000,000 | ||||
Loss resulting from discount on sale of receivables | 106,000,000 | ||||
Receivables Facility | |||||
Related Party Transaction [Line Items] | |||||
Revolving receivables facility | 3,750,000,000 | 3,750,000,000 | |||
Cash collections on previously sold current receivables | 14,874,000,000 | ||||
Amount reinvested by the purchasing entities | 123,000,000 | 123,000,000 | |||
Transferred receivables that remain outstanding | $ 3,096,000,000 | $ 3,096,000,000 | $ 3,222,000,000 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials and work in process | $ 11,194 | $ 10,131 |
Finished goods | 9,231 | 8,847 |
Unbilled shipments | 217 | 441 |
Total Inventories | $ 20,642 | $ 19,419 |
GE CAPITAL FINANCING RECEIVAB_3
GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES - Schedule of Financing Receivables, Net (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables – net | $ 7,918 | $ 10,336 |
Financing Receivables Portfolio Segment | Affiliated Entity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 15,697 | 22,018 |
Allowance for losses | (34) | (51) |
Financing receivables – net | 15,663 | 21,967 |
Financing Receivables Portfolio Segment | Affiliated Entity | Loans, net of deferred income | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 12,764 | 17,404 |
Financing Receivables Portfolio Segment | Affiliated Entity | Investment in financing leases, net of deferred income | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | $ 2,933 | $ 4,614 |
GE CAPITAL FINANCING RECEIVAB_4
GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | $ 7,918 | $ 10,336 |
Guaranteed loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for loan losses | 160 | 161 |
GE Capital | Healthcare | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables classified as held for sale | 1,646 | |
Write-offs on financing receivables | 8 | |
GE Capital | Investment in financing leases, net of deferred income | Healthcare | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables held for sale | 1,628 | |
Financing Receivables Portfolio Segment | GE Capital | Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables with recourse | 1,702 | 4,148 |
Financing receivable | 1,071 | 1,141 |
Financing receivables on nonaccrual | $ 249 | $ 239 |
Financing Receivables Portfolio Segment | Affiliated Entity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percent of financing receivables on nonaccrual | 2.10% | 1.10% |
Financing receivable | $ 15,663 | $ 21,967 |
Allowance for loan losses | $ 34 | $ 51 |
Financing Receivables Portfolio Segment | Affiliated Entity | Equal to or greater than 90 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percent of financing receivables over 90 days past due | 3.00% | 0.60% |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||||
Original cost | $ 87,516 | $ 87,516 | $ 89,607 | ||
Less accumulated depreciation and amortization | (36,878) | (36,878) | (35,733) | ||
Property, plant and equipment – net | 50,638 | 50,638 | $ 53,874 | ||
Consolidated depreciation and amortization on property, plant and equipment | $ 1,527 | $ 1,397 | $ 4,222 | $ 3,715 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Goodwill Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill | ||||
Balance at beginning of period | $ 83,968 | |||
Acquisitions | 16 | |||
Impairments | $ (21,973) | $ (947) | (21,973) | $ (947) |
Dispositions, currency exchange and other | (1,634) | |||
Balance at end of period | 60,377 | 60,377 | ||
Operating Segments | Power | ||||
Goodwill | ||||
Balance at beginning of period | 25,269 | |||
Acquisitions | 0 | |||
Impairments | (21,147) | |||
Dispositions, currency exchange and other | (2,255) | |||
Balance at end of period | 1,868 | 1,868 | ||
Operating Segments | Renewable Energy | ||||
Goodwill | ||||
Balance at beginning of period | 4,093 | |||
Acquisitions | 0 | |||
Impairments | 0 | |||
Dispositions, currency exchange and other | 13 | |||
Balance at end of period | 4,106 | 4,106 | ||
Operating Segments | Aviation | ||||
Goodwill | ||||
Balance at beginning of period | 10,008 | |||
Acquisitions | 0 | |||
Impairments | 0 | |||
Dispositions, currency exchange and other | (38) | |||
Balance at end of period | 9,970 | 9,970 | ||
Operating Segments | Oil & Gas | ||||
Goodwill | ||||
Balance at beginning of period | 23,943 | |||
Acquisitions | 16 | |||
Impairments | 0 | |||
Dispositions, currency exchange and other | 688 | |||
Balance at end of period | 24,647 | 24,647 | ||
Operating Segments | Healthcare | ||||
Goodwill | ||||
Balance at beginning of period | 17,306 | |||
Acquisitions | 0 | |||
Impairments | 0 | |||
Dispositions, currency exchange and other | (40) | |||
Balance at end of period | 17,266 | 17,266 | ||
Operating Segments | Transportation | ||||
Goodwill | ||||
Balance at beginning of period | 902 | |||
Acquisitions | 0 | |||
Impairments | 0 | |||
Dispositions, currency exchange and other | (17) | |||
Balance at end of period | 885 | 885 | ||
Operating Segments | Lighting | ||||
Goodwill | ||||
Balance at beginning of period | 0 | |||
Acquisitions | 0 | |||
Impairments | 0 | |||
Dispositions, currency exchange and other | 0 | |||
Balance at end of period | 0 | 0 | ||
Operating Segments | Capital | ||||
Goodwill | ||||
Balance at beginning of period | 984 | |||
Acquisitions | 0 | |||
Impairments | 0 | |||
Dispositions, currency exchange and other | 0 | |||
Balance at end of period | 984 | 984 | ||
Corporate | ||||
Goodwill | ||||
Balance at beginning of period | 1,463 | |||
Acquisitions | 0 | |||
Impairments | (827) | (827) | ||
Dispositions, currency exchange and other | 15 | |||
Balance at end of period | $ 651 | $ 651 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2018USD ($) | |
Goodwill [Line Items] | ||||||
Goodwill | $ 60,377,000,000 | $ 60,377,000,000 | $ 83,968,000,000 | |||
Impairment loss | 21,973,000,000 | $ 947,000,000 | 21,973,000,000 | $ 947,000,000 | ||
Corporate | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 651,000,000 | 651,000,000 | 1,463,000,000 | |||
Impairment loss | 827,000,000 | 827,000,000 | ||||
Power Generation and Grid Solutions | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 15,800,000,000 | 15,800,000,000 | ||||
Impairment loss | 21,973,000,000 | |||||
Power Generation | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 0 | 0 | ||||
Grid Solutions | ||||||
Goodwill [Line Items] | ||||||
Goodwill | $ 1,653,000,000 | $ 1,653,000,000 | ||||
Industrial Finance | ||||||
Goodwill [Line Items] | ||||||
Goodwill | $ 111,000,000 | |||||
Power Conversion | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 0 | |||||
Impairment loss | $ 947,000,000 | $ 1,164,000,000 | ||||
Discount Rate | Minimum | ||||||
Goodwill [Line Items] | ||||||
Goodwill discount rates | 0.095 | 0.095 | ||||
Discount Rate | Maximum | ||||||
Goodwill [Line Items] | ||||||
Goodwill discount rates | 0.170 | 0.170 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets - Net (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Business Combinations [Abstract] | ||
Intangible assets subject to amortization | $ 16,616 | $ 18,056 |
Indefinite-lived intangible assets | 2,223 | 2,217 |
Total | $ 18,838 | $ 20,273 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 30,748 | $ 30,618 |
Accumulated amortization | (14,134) | (12,561) |
Net | 16,616 | 18,056 |
Customer-related | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 10,370 | 10,614 |
Accumulated amortization | (3,648) | (3,095) |
Net | 6,724 | 7,521 |
Patents and technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 10,651 | 10,271 |
Accumulated amortization | (4,515) | (3,899) |
Net | 6,136 | 6,372 |
Capitalized software | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 8,189 | 8,064 |
Accumulated amortization | (5,271) | (4,974) |
Net | 2,919 | 3,089 |
Trademarks | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,150 | 1,280 |
Accumulated amortization | (514) | (421) |
Net | 636 | 859 |
Lease valuations | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 157 | 170 |
Accumulated amortization | (86) | (80) |
Net | 70 | 89 |
All other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 231 | 218 |
Accumulated amortization | (100) | (92) |
Net | $ 132 | $ 125 |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets, Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Decrease in intangible assets subject to amortization | $ 1,440 | |||
Amortization of intangible assets | 2,126 | $ 1,713 | ||
GE | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 944 | $ 613 | 2,085 | 1,662 |
GE Capital | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 12 | $ 16 | 42 | $ 50 |
Power | Power Conversion | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Non-cash impairment charge of intangibles | $ 428 | 428 | ||
Technology Intangible Assets | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 632 |
REVENUES - Revenues from the Sa
REVENUES - Revenues from the Sale of Services (Details) | Sep. 30, 2018 |
Minimum | |
Revenue from External Customer [Line Items] | |
Contract term | 5 years |
Maximum | |
Revenue from External Customer [Line Items] | |
Contract term | 25 years |
REVENUES - Equipment and Servic
REVENUES - Equipment and Services Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Industrial Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ 27,785 | $ 29,171 | $ 83,837 | $ 81,967 |
Industrial Segment | Equipment Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 13,117 | 14,484 | 39,175 | 41,112 |
Industrial Segment | Services Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 14,668 | 14,687 | 44,662 | 40,854 |
Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 5,739 | 8,527 | 20,540 | 25,868 |
Power | Equipment Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,299 | 4,468 | 9,336 | 13,282 |
Power | Services Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,441 | 4,059 | 11,205 | 12,586 |
Renewable Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,873 | 2,507 | 6,172 | 6,587 |
Renewable Energy | Equipment Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,448 | 1,957 | 4,754 | 5,385 |
Renewable Energy | Services Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 425 | 550 | 1,418 | 1,201 |
Aviation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 7,480 | 6,696 | 22,111 | 20,003 |
Aviation | Equipment Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,834 | 2,425 | 8,281 | 7,375 |
Aviation | Services Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,646 | 4,270 | 13,830 | 12,628 |
Oil & Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 5,670 | 5,311 | 16,609 | 11,394 |
Oil & Gas | Equipment Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,221 | 2,168 | 6,638 | 4,732 |
Oil & Gas | Services Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,449 | 3,143 | 9,971 | 6,662 |
Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,707 | 4,710 | 14,387 | 13,703 |
Healthcare | Equipment Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,700 | 2,648 | 8,119 | 7,605 |
Healthcare | Services Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,006 | 2,062 | 6,268 | 6,097 |
Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 932 | 949 | 2,746 | 3,006 |
Transportation | Equipment Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 249 | 364 | 820 | 1,373 |
Transportation | Services Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 682 | 585 | 1,925 | 1,633 |
Lighting | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 385 | 472 | 1,272 | 1,407 |
Lighting | Equipment Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 367 | 454 | 1,227 | 1,361 |
Lighting | Services Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ 18 | $ 18 | $ 45 | $ 46 |
REVENUES - Sub-Segment Revenues
REVENUES - Sub-Segment Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Consolidated Revenues | $ 29,573 | $ 30,662 | $ 88,337 | $ 86,640 |
Revenues outside the scope of ASC 606 | 2,109 | 1,898 | 5,905 | 6,184 |
GE Capital | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues outside the scope of ASC 606 | 2,425 | 2,342 | 6,903 | 7,346 |
Industrial Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 27,785 | 29,171 | 83,837 | 81,967 |
Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 5,739 | 8,527 | 20,540 | 25,868 |
Renewable Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,873 | 2,507 | 6,172 | 6,587 |
Aviation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 7,480 | 6,696 | 22,111 | 20,003 |
Oil & Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 5,670 | 5,311 | 16,609 | 11,394 |
Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,707 | 4,710 | 14,387 | 13,703 |
Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 932 | 949 | 2,746 | 3,006 |
Lighting | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 385 | 472 | 1,272 | 1,407 |
Operating segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Revenues | 30,258 | 31,569 | 90,912 | 89,491 |
Operating segments | Industrial Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 27,785 | 29,171 | 83,837 | 81,967 |
Operating segments | Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 5,739 | 8,527 | 20,540 | 25,868 |
Consolidated Revenues | 5,739 | 8,527 | 20,540 | 25,868 |
Operating segments | Power | Gas Power Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 961 | 1,965 | 3,897 | 6,175 |
Operating segments | Power | Power Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,727 | 2,901 | 8,737 | 9,101 |
Operating segments | Power | Steam Power Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 425 | 577 | 1,413 | 1,504 |
Operating segments | Power | Energy Connections | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 1,486 | 2,386 | 6,005 | 7,072 |
Operating segments | Power | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 141 | 697 | 489 | 2,015 |
Operating segments | Renewable Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,873 | 2,507 | 6,172 | 6,587 |
Consolidated Revenues | 2,873 | 2,507 | 6,172 | 6,587 |
Operating segments | Renewable Energy | Onshore Wind | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,558 | 2,187 | 5,153 | 5,794 |
Operating segments | Renewable Energy | Hydro | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 197 | 258 | 607 | 641 |
Operating segments | Renewable Energy | Offshore Wind | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 118 | 62 | 412 | 151 |
Operating segments | Aviation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 7,480 | 6,696 | 22,111 | 20,003 |
Consolidated Revenues | 7,480 | 6,696 | 22,111 | 20,003 |
Operating segments | Aviation | Commercial Engines & Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 5,636 | 4,848 | 16,443 | 14,737 |
Operating segments | Aviation | Military | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 898 | 1,023 | 2,942 | 2,891 |
Operating segments | Aviation | Systems & Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 946 | 824 | 2,726 | 2,375 |
Operating segments | Oil & Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 5,670 | 5,311 | 16,609 | 11,394 |
Consolidated Revenues | 5,670 | 5,311 | 16,609 | 11,394 |
Operating segments | Oil & Gas | Turbomachinery & Process Solutions (TPS) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 1,393 | 1,422 | 4,231 | 4,657 |
Operating segments | Oil & Gas | Oilfield Services (OFS) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,993 | 2,661 | 8,554 | 3,101 |
Operating segments | Oil & Gas | Oilfield Equipment (OFE) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 631 | 613 | 1,912 | 2,011 |
Operating segments | Oil & Gas | Digital Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 653 | 615 | 1,912 | 1,625 |
Operating segments | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,707 | 4,710 | 14,387 | 13,703 |
Consolidated Revenues | 4,707 | 4,710 | 14,387 | 13,703 |
Operating segments | Healthcare | Healthcare Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,417 | 3,365 | 10,241 | 9,670 |
Operating segments | Healthcare | Life Sciences | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 1,140 | 1,099 | 3,509 | 3,273 |
Operating segments | Healthcare | Healthcare Digital | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 149 | 246 | 636 | 760 |
Operating segments | Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 932 | 949 | 2,746 | 3,006 |
Consolidated Revenues | 932 | 949 | 2,746 | 3,006 |
Operating segments | Transportation | Locomotives | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 133 | 268 | 481 | 1,145 |
Operating segments | Transportation | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 564 | 489 | 1,600 | 1,381 |
Operating segments | Transportation | Mining | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 139 | 106 | 392 | 242 |
Operating segments | Transportation | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 96 | 86 | 273 | 239 |
Operating segments | Lighting | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 385 | 472 | 1,272 | 1,407 |
Consolidated Revenues | 385 | 472 | 1,272 | 1,407 |
Operating segments | Lighting | Current | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 213 | 259 | 697 | 745 |
Operating segments | Lighting | GE Lighting | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 172 | 213 | 575 | 662 |
Operating segments | Capital | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Revenues | 2,473 | 2,397 | 7,075 | 7,525 |
Corporate items and eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Revenues | $ (685) | $ (907) | $ (2,575) | $ (2,851) |
REVENUES - Remaining Performanc
REVENUES - Remaining Performance Obligation (Details) $ in Millions | Sep. 30, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 249,154 |
Equipment | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 51,553 |
Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 197,602 |
REVENUES - Remaining Performa_2
REVENUES - Remaining Performance Obligation (Percentage and Period) (Details) | Sep. 30, 2018 |
Equipment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 52.00% |
Performance obligations expected to be satisfied, expected timing | 1 year |
Equipment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 72.00% |
Performance obligations expected to be satisfied, expected timing | 2 years |
Equipment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 93.00% |
Performance obligations expected to be satisfied, expected timing | 5 years |
Services Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 17.00% |
Performance obligations expected to be satisfied, expected timing | 1 year |
Services Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 52.00% |
Performance obligations expected to be satisfied, expected timing | 5 years |
Services Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 75.00% |
Performance obligations expected to be satisfied, expected timing | 10 years |
Services Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2032-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 86.00% |
Performance obligations expected to be satisfied, expected timing | 15 years |
CONTRACT & OTHER DEFERRED ASS_3
CONTRACT & OTHER DEFERRED ASSETS AND PROGRESS COLLECTIONS & DEFERRED INCOME - Schedule of Contract Assets (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Contract and other deferred assets | $ 20,905 | $ 20,356 | |
Deferred income | 4,932 | 5,498 | |
GE | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 14,080 | 13,775 | |
Deferred inventory costs | 3,515 | 3,579 | |
Nonrecurring engineering costs | 2,179 | 1,905 | |
Customer advances and other | 1,132 | 1,098 | |
Contract and other deferred assets | [1] | 20,905 | 20,356 |
Deferred income | 3,811 | 3,911 | |
GE | Long-term product service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 7,190 | 6,902 | |
GE | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 6,890 | 6,874 | |
GE | Equipment upgrades | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 869 | 748 | |
GE | Power | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 8,104 | 8,115 | |
Deferred inventory costs | 905 | 1,304 | |
Nonrecurring engineering costs | 108 | 122 | |
Customer advances and other | 1 | 0 | |
Contract and other deferred assets | 9,118 | 9,539 | |
GE | Power | Long-term product service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 3,828 | 3,357 | |
GE | Power | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 4,276 | 4,757 | |
GE | Aviation | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 2,739 | 2,893 | |
Deferred inventory costs | 698 | 564 | |
Nonrecurring engineering costs | 1,896 | 1,696 | |
Customer advances and other | 1,127 | 1,098 | |
Contract and other deferred assets | 6,461 | 6,251 | |
GE | Aviation | Long-term product service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 2,295 | 2,614 | |
GE | Aviation | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 444 | 280 | |
GE | Oil & Gas | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 1,664 | 1,612 | |
Deferred inventory costs | 251 | 358 | |
Nonrecurring engineering costs | 15 | 0 | |
Customer advances and other | 2 | 0 | |
Contract and other deferred assets | 1,933 | 1,971 | |
GE | Oil & Gas | Long-term product service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 540 | 517 | |
GE | Oil & Gas | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 1,124 | 1,095 | |
GE | Renewable Energy | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 297 | 296 | |
Deferred inventory costs | 1,277 | 950 | |
Nonrecurring engineering costs | 24 | 0 | |
Customer advances and other | 0 | 0 | |
Contract and other deferred assets | 1,597 | 1,246 | |
GE | Renewable Energy | Long-term product service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 0 | 1 | |
GE | Renewable Energy | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 297 | 295 | |
GE | Transportation | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 733 | 488 | |
Deferred inventory costs | 39 | 43 | |
Nonrecurring engineering costs | 101 | 87 | |
Customer advances and other | 1 | 0 | |
Contract and other deferred assets | 874 | 619 | |
GE | Transportation | Long-term product service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 526 | 413 | |
GE | Transportation | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 207 | 76 | |
GE | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 543 | 371 | |
Deferred inventory costs | 345 | 359 | |
Nonrecurring engineering costs | 34 | 0 | |
Customer advances and other | 0 | 0 | |
Contract and other deferred assets | 922 | 729 | |
GE | Other | Long-term product service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 0 | 0 | |
GE | Other | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | $ 543 | $ 371 | |
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
CONTRACT & OTHER DEFERRED ASS_4
CONTRACT & OTHER DEFERRED ASSETS AND PROGRESS COLLECTIONS & DEFERRED INCOME - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Contractors [Abstract] | ||
Revenue recognized included in contract liability | $ 13,131 | $ 11,446 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Increase in contract and other deferred assets | 549 | |
Increase (decrease) in revenue in excess of billings on long-term product service agreements | 63 | |
Increase in non-recurring engineering costs | 274 | |
Increase (decrease) in revenue in excess of billings for equipment contracts due to timing of revenue recognized for work performed | 16 | |
Increase (decrease) in deferred inventory costs | (64) | |
Power | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Increase (decrease) in revenue in excess of billings on long-term product service agreements | 261 | |
Increase (decrease) in revenue in excess of billings for equipment contracts due to timing of revenue recognized for work performed | (481) | |
Increase (decrease) in deferred inventory costs | (399) | |
Aviation | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Increase (decrease) in revenue in excess of billings on long-term product service agreements | (259) | |
Increase in non-recurring engineering costs | 200 | |
Increase (decrease) in revenue in excess of billings for equipment contracts due to timing of revenue recognized for work performed | 164 | |
Increase (decrease) in deferred inventory costs | 134 | |
Healthcare | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Increase (decrease) in revenue in excess of billings for equipment contracts due to timing of revenue recognized for work performed | 175 | |
Transportation | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Increase (decrease) in revenue in excess of billings on long-term product service agreements | 62 | |
Increase (decrease) in revenue in excess of billings for equipment contracts due to timing of revenue recognized for work performed | 131 | |
Oil & Gas | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Increase (decrease) in deferred inventory costs | (107) | |
Renewable Energy | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Increase (decrease) in deferred inventory costs | 327 | |
Revisions | Adjustment Due to Change in Estimated Profitability | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Change in gross profit | 225 | |
Revisions | Adjustment Due to Change in Estimated Profitability | Power | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Change in gross profit | $ 211 |
CONTRACT & OTHER DEFERRED ASS_5
CONTRACT & OTHER DEFERRED ASSETS AND PROGRESS COLLECTIONS & DEFERRED INCOME - Progress Collections and Deferred Income (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |
Capitalized Contract Cost [Line Items] | |||
Deferred income | $ 4,932 | $ 5,498 | |
Total progress collections & deferred income | 20,579 | 22,117 | |
GE | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 17,036 | 18,310 | |
Deferred income | 3,811 | 3,911 | |
Total progress collections & deferred income | [1] | $ 20,847 | $ 22,221 |
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
BORROWINGS - Schedule of Borrow
BORROWINGS - Schedule of Borrowings (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total borrowings | $ 114,966,000,000 | $ 134,591,000,000 |
Short-term borrowings | ||
Short-term borrowings | 15,206,000,000 | 24,036,000,000 |
Eliminations | (4,711,000,000) | (10,114,000,000) |
Short-term debt assumed | 3,661,000,000 | 8,310,000,000 |
Long-term borrowings | ||
Borrowings | 97,060,000,000 | 108,575,000,000 |
Eliminations | (20,132,000,000) | (32,079,000,000) |
Long-term debt assumed | 33,338,000,000 | 38,804,000,000 |
Non-recourse borrowings of consolidated securitization entities (Note 11) | 2,699,000,000 | 1,980,000,000 |
Current portion of long-term borrowings | ||
Long-term borrowings | ||
Non-recourse borrowings of consolidated securitization entities (Note 11) | 424,000,000 | 621,000,000 |
GE | ||
Short-term borrowings | ||
Short-term borrowings | 8,694,000,000 | 14,548,000,000 |
Long-term borrowings | ||
Borrowings | 60,863,000,000 | 67,040,000,000 |
GE | Senior notes | ||
Long-term borrowings | ||
Borrowings | 57,118,000,000 | 62,724,000,000 |
GE | Subordinated notes | ||
Long-term borrowings | ||
Borrowings | 2,893,000,000 | 2,913,000,000 |
GE | Other | ||
Long-term borrowings | ||
Borrowings | 853,000,000 | 1,403,000,000 |
GE | Commercial paper | ||
Short-term borrowings | ||
Short-term borrowings | 3,006,000,000 | 3,000,000,000 |
GE | Current portion of long-term borrowings | ||
Short-term borrowings | ||
Short-term borrowings | 3,768,000,000 | 9,452,000,000 |
GE | Other | ||
Short-term borrowings | ||
Short-term borrowings | 1,921,000,000 | 2,095,000,000 |
GE Capital | ||
Short-term borrowings | ||
Short-term borrowings | 11,223,000,000 | 19,602,000,000 |
Long-term borrowings | ||
Borrowings | 56,329,000,000 | 73,614,000,000 |
GE Capital | Current portion of long-term borrowings/Short-term borrowings | ||
Debt Instrument [Line Items] | ||
Funding secured by aircraft and other collateral | 189,000,000 | 348,000,000 |
GE Capital | Non-recourse debt | ||
Debt Instrument [Line Items] | ||
Funding secured by aircraft and other collateral | 236,000,000 | 458,000,000 |
GE Capital | Intercompany payable to GE | ||
Long-term borrowings | ||
Long-term intercompany loans | 13,269,000,000 | 7,271,000,000 |
GE Capital | Senior notes | ||
Long-term borrowings | ||
Borrowings | 35,152,000,000 | 40,754,000,000 |
GE Capital | Subordinated notes | ||
Long-term borrowings | ||
Borrowings | 161,000,000 | 208,000,000 |
GE Capital | Other | ||
Debt Instrument [Line Items] | ||
Funding secured by aircraft and other collateral | 946,000,000 | 1,118,000,000 |
Long-term borrowings | ||
Borrowings | 946,000,000 | 1,118,000,000 |
GE Capital | Intercompany payable to GE | ||
Long-term borrowings | ||
Borrowings | 20,069,000,000 | 31,533,000,000 |
GE Capital | Non-recourse borrowings of consolidated securitization entities | ||
Long-term borrowings | ||
Borrowings | 2,699,000,000 | 1,980,000,000 |
GE Capital | Commercial paper | ||
Short-term borrowings | ||
Short-term borrowings | 3,011,000,000 | 5,013,000,000 |
GE Capital | Current portion of long-term borrowings | ||
Short-term borrowings | ||
Short-term borrowings | 4,423,000,000 | 5,781,000,000 |
GE Capital | Intercompany payable to GE | ||
Short-term borrowings | ||
Short-term borrowings | 3,181,000,000 | 8,310,000,000 |
Short-term intercompany loans | 480,000,000 | 0 |
GE Capital | Other | ||
Short-term borrowings | ||
Short-term borrowings | 607,000,000 | 497,000,000 |
BHGE | ||
Long-term borrowings | ||
Borrowings | 6,357,000,000 | 7,225,000,000 |
BHGE | Senior notes | ||
Long-term borrowings | ||
Borrowings | $ 6,181,000,000 | $ 6,206,000,000 |
BORROWINGS - Narrative (Details
BORROWINGS - Narrative (Details) $ in Millions | Sep. 30, 2018USD ($) |
GE Capital | Non-recourse borrowings of consolidated securitization entities | |
Guarantor Obligations [Line Items] | |
Debt assumed by GE upon merger | $ 37,948 |
INVESTMENT CONTRACTS, INSURAN_3
INVESTMENT CONTRACTS, INSURANCE LIABILITIES AND INSURANCE ANNUITY BENEFITS - Schedule of Investment Contracts, Insurance Liabilities and Insurance Annuity Benefits (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Future policy benefit reserves | ||
Long-term care insurance contracts | $ 16,119 | $ 16,522 |
Structured settlement annuities with life contingencies and other contracts | 9,450 | 9,448 |
Shadow adjustments | 2,409 | 4,582 |
Future policy benefit reserves | 27,978 | 30,552 |
Investment contracts | 2,433 | 2,569 |
Claim reserves | 5,277 | 5,094 |
Unearned premiums and other | 382 | 372 |
Future policy benefit reserves, investment contracts, claim reserves and unearned premiums and other | 36,070 | 38,587 |
Eliminations | (495) | (451) |
Total | 35,575 | 38,136 |
Long Term-Care Insurance Contracts | ||
Future policy benefit reserves | ||
Claim reserves | 3,816 | 3,590 |
Short-Duration Insurance Contracts | ||
Future policy benefit reserves | ||
Claim reserves | $ 368 | $ 364 |
INVESTMENT CONTRACTS, INSURAN_4
INVESTMENT CONTRACTS, INSURANCE LIABILITIES AND INSURANCE ANNUITY BENEFITS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 81 Months Ended | ||||
Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2024 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||||
Expected capital contributions | $ 14,500 | ||||||
Premium deficiency | 9,481 | ||||||
Claims incurred | $ 1,641 | $ 1,482 | |||||
Prior year claims | 1 | 60 | |||||
Paid claims | 1,499 | 1,260 | |||||
Reinsurance recoverables, net | $ 2,217 | 2,458 | 2,217 | ||||
Ceded claim reserves | 749 | $ 715 | 749 | ||||
Reinsurance recoveries | $ 89 | $ 104 | $ 206 | $ 339 | |||
GE Capital | |||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||||
Capital contributions to insurance subsidiaries | $ 3,500 | ||||||
GE Capital | Scenario, Forecast | |||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||||||
Capital contributions to insurance subsidiaries | $ 11,000 |
POSTRETIREMENT BENEFIT PLANS (D
POSTRETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions to the pension plan | $ 6,000 | |||
Principal pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost for benefits earned | $ 232 | $ 267 | 667 | $ 810 |
Prior service cost (credit) amortization | 36 | 73 | 108 | 218 |
Expected return on plan assets | (803) | (847) | (2,443) | (2,545) |
Interest cost on benefit obligations | 666 | 715 | 1,999 | 2,144 |
Net actuarial loss amortization | 947 | 702 | 2,841 | 2,109 |
Curtailment loss | 46 | 0 | 46 | 43 |
Plans cost (income) | 1,124 | 910 | 3,218 | 2,779 |
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 | 85 | 156 | 279 | 430 |
Prior service cost (credit) amortization | (2) | (2) | (4) | (4) |
Expected return on plan assets | (342) | (324) | (1,059) | (919) |
Interest cost on benefit obligations | 150 | 158 | 462 | 445 |
Net actuarial loss amortization | 78 | 110 | 243 | 320 |
Settlement gain | 0 | 0 | (6) | 0 |
Curtailment loss | 0 | 11 | 0 | 11 |
Plans cost (income) | (31) | 109 | (85) | 283 |
Principal retiree benefit plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost for benefits earned | 19 | 25 | 48 | 77 |
Prior service cost (credit) amortization | (58) | (42) | (172) | (128) |
Expected return on plan assets | (8) | (9) | (22) | (27) |
Interest cost on benefit obligations | 49 | 55 | 147 | 168 |
Net actuarial loss amortization | (19) | (20) | (59) | (61) |
Curtailment loss | 0 | 0 | 0 | 3 |
Plans cost (income) | $ (17) | $ 9 | $ (58) | $ 32 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | (3.20%) | (38.10%) | |
Income Tax Contingency [Line Items] | |||
Tax expense recorded resulting from the U.S. tax reform | $ (79) | $ 4,512 | |
Transition tax on historic foreign earnings | 1,155 | ||
Revaluation of deferred taxes | 55 | 3,357 | |
Tax benefit related to non-consolidated operations | 134 | ||
GE | |||
Income Tax Contingency [Line Items] | |||
Transition tax on historic foreign earnings | 2,925 | ||
Revaluation of deferred taxes | 1,980 | ||
GE Capital | |||
Income Tax Contingency [Line Items] | |||
Transition tax on historic foreign earnings | (1,770) | ||
Revaluation of deferred taxes | $ 1,377 | ||
GE Capital | Foreign Tax Authority | United Kingdom | |||
Income Tax Contingency [Line Items] | |||
Potential impact on disallowance of interest deductions | $ 1,000 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Unrecognized tax benefits | $ 4,908 | $ 5,449 |
Portion that, if recognized, would reduce tax expense and effective tax rate | 3,771 | 3,626 |
Accrued interest on unrecognized tax benefits | 886 | 810 |
Accrued penalties on unrecognized tax benefits | 188 | 158 |
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 | 1,200 | 900 |
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months | $ 1,300 | $ 1,100 |
SHAREOWNERS_ EQUITY - Schedule
SHAREOWNERS’ EQUITY - Schedule of Shareowners' Equity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Equity [Abstract] | ||||||||||||
Preferred stock issued | $ 6,000,000 | $ 6,000,000 | $ 6,000,000 | $ 6,000,000 | $ 6,000,000 | |||||||
Common stock issued | 702,000,000 | 702,000,000 | 702,000,000 | 702,000,000 | 702,000,000 | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||||||||
Beginning balance | 73,498,000,000 | |||||||||||
Other comprehensive income (loss) before reclassifications | (648,000,000) | 793,000,000 | (1,625,000,000) | 2,407,000,000 | ||||||||
Reclassifications from other comprehensive income | 812,000,000 | 253,000,000 | 2,708,000,000 | 1,780,000,000 | ||||||||
Other comprehensive income (loss) | 164,000,000 | 1,046,000,000 | 1,082,000,000 | 4,184,000,000 | ||||||||
Ending balance | 47,837,000,000 | 86,751,000,000 | 47,837,000,000 | 86,751,000,000 | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Beginning balance | 73,498,000,000 | |||||||||||
Gains (losses) on treasury stock dispositions | (41,000,000) | 1,169,000,000 | (73,000,000) | 1,413,000,000 | ||||||||
Net earnings (loss) attributable to the Company | (22,769,000,000) | 1,360,000,000 | (23,116,000,000) | 2,334,000,000 | ||||||||
GE shareowners' equity balance | 31,454,000,000 | 69,051,000,000 | 31,454,000,000 | 69,051,000,000 | 56,030,000,000 | |||||||
Noncontrolling interests | 16,383,000,000 | [1] | 17,701,000,000 | 16,383,000,000 | [1] | 17,701,000,000 | $ 16,685,000,000 | 17,468,000,000 | [1] | $ 1,634,000,000 | $ 1,663,000,000 | |
Ending balance | 47,837,000,000 | 86,751,000,000 | 47,837,000,000 | 86,751,000,000 | ||||||||
Adjustments to deferred acquisition costs, present value of future profits, and investment contracts, insurance liabilities and insurance annuity benefits | 234,000,000 | 9,000,000 | 1,705,000,000 | (180,000,000) | ||||||||
Currency translation gains and losses on dispositions | 0 | 0 | 0 | 510,000,000 | ||||||||
Retained earnings | 90,867,000,000 | 90,867,000,000 | 117,245,000,000 | |||||||||
ASU 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Retained earnings | 8,061,000,000 | $ (4,240,000,000) | ||||||||||
ASU 2015-11 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Retained earnings | 377,000,000 | $ (105,000,000) | ||||||||||
ASU 2016-16 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Retained earnings | $ 464,000,000 | |||||||||||
Accumulated other comprehensive income (loss) | ||||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||||||||
Beginning balance | (13,432,000,000) | (15,457,000,000) | (14,404,000,000) | (18,588,000,000) | ||||||||
Ending balance | (13,229,000,000) | (14,535,000,000) | (13,229,000,000) | (14,535,000,000) | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Beginning balance | (13,432,000,000) | (15,457,000,000) | (14,404,000,000) | (18,588,000,000) | ||||||||
Ending balance | (13,229,000,000) | (14,535,000,000) | (13,229,000,000) | (14,535,000,000) | ||||||||
Investment securities - net of deferred taxes | ||||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||||||||
Other comprehensive income (loss) before reclassifications | (74,000,000) | 54,000,000 | 67,000,000 | 363,000,000 | ||||||||
Other comprehensive income (loss) before reclassifications, deferred taxes | (22,000,000) | 45,000,000 | 26,000,000 | 204,000,000 | ||||||||
Reclassifications from other comprehensive income | 17,000,000 | (32,000,000) | 1,000,000 | (150,000,000) | ||||||||
Reclassifications from other comprehensive income, deferred taxes | 5,000,000 | (17,000,000) | 3,000,000 | (78,000,000) | ||||||||
Currency translation - net of deferred taxes | ||||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||||||||
Other comprehensive income (loss) before reclassifications | (639,000,000) | 697,000,000 | (1,856,000,000) | 1,437,000,000 | ||||||||
Other comprehensive income (loss) before reclassifications, deferred taxes | (24,000,000) | (407,000,000) | 17,000,000 | (648,000,000) | ||||||||
Reclassifications from other comprehensive income | 7,000,000 | (196,000,000) | 385,000,000 | 392,000,000 | ||||||||
Reclassifications from other comprehensive income, deferred taxes | (1,000,000) | 2,000,000 | (1,000,000) | (538,000,000) | ||||||||
Cash flow hedges - net of deferred taxes | ||||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||||||||
Other comprehensive income (loss) before reclassifications | (8,000,000) | 175,000,000 | (35,000,000) | 239,000,000 | ||||||||
Other comprehensive income (loss) before reclassifications, deferred taxes | 2,000,000 | 55,000,000 | (6,000,000) | 53,000,000 | ||||||||
Reclassifications from other comprehensive income | (1,000,000) | (75,000,000) | 0 | (129,000,000) | ||||||||
Reclassifications from other comprehensive income, deferred taxes | 2,000,000 | (28,000,000) | 9,000,000 | (37,000,000) | ||||||||
Benefit plans - net of deferred taxes | ||||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||||||||
Other comprehensive income (loss) before reclassifications | 73,000,000 | (132,000,000) | 199,000,000 | 368,000,000 | ||||||||
Other comprehensive income (loss) before reclassifications, deferred taxes | 16,000,000 | (49,000,000) | 71,000,000 | 84,000,000 | ||||||||
Reclassifications from other comprehensive income | 789,000,000 | 556,000,000 | 2,322,000,000 | 1,667,000,000 | ||||||||
Reclassifications from other comprehensive income, deferred taxes | 230,000,000 | 275,000,000 | 666,000,000 | 833,000,000 | ||||||||
AOCI attributable to noncontrolling interests | ||||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||||||||
Beginning balance | (226,000,000) | |||||||||||
Other comprehensive income (loss) | (39,000,000) | 124,000,000 | (92,000,000) | 131,000,000 | ||||||||
Ending balance | (318,000,000) | (318,000,000) | ||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Beginning balance | (226,000,000) | |||||||||||
Ending balance | (318,000,000) | (318,000,000) | ||||||||||
AOCI attributable to parent | ||||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||||||||
Other comprehensive income (loss) | 203,000,000 | 922,000,000 | 1,174,000,000 | 4,053,000,000 | ||||||||
Other capital | ||||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||||||||
Beginning balance | 37,352,000,000 | 37,468,000,000 | 37,384,000,000 | 37,224,000,000 | ||||||||
Ending balance | 37,311,000,000 | 38,637,000,000 | 37,311,000,000 | 38,637,000,000 | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Beginning balance | 37,352,000,000 | 37,468,000,000 | 37,384,000,000 | 37,224,000,000 | ||||||||
Ending balance | 37,311,000,000 | 38,637,000,000 | 37,311,000,000 | 38,637,000,000 | ||||||||
Retained earnings | ||||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||||||||
Beginning balance | 114,913,000,000 | 130,271,000,000 | 117,245,000,000 | 133,856,000,000 | ||||||||
Ending balance | 90,867,000,000 | 129,440,000,000 | 90,867,000,000 | 129,440,000,000 | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Beginning balance | 114,913,000,000 | 130,271,000,000 | 117,245,000,000 | 133,856,000,000 | ||||||||
Net earnings (loss) attributable to the Company | (22,769,000,000) | 1,360,000,000 | (23,116,000,000) | 2,334,000,000 | ||||||||
Dividends and other transactions with shareowners | (1,086,000,000) | (2,121,000,000) | (3,395,000,000) | (6,514,000,000) | ||||||||
Redemption value adjustment for redeemable noncontrolling interests | (191,000,000) | (70,000,000) | (367,000,000) | (236,000,000) | ||||||||
Other changes | 0 | 0 | 500,000,000 | 0 | ||||||||
Ending balance | 90,867,000,000 | 129,440,000,000 | 90,867,000,000 | 129,440,000,000 | ||||||||
Common stock held in treasury | ||||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||||||||||
Beginning balance | (84,471,000,000) | (85,617,000,000) | (84,902,000,000) | (83,038,000,000) | ||||||||
Ending balance | (84,202,000,000) | (85,199,000,000) | (84,202,000,000) | (85,199,000,000) | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Beginning balance | (84,471,000,000) | (85,617,000,000) | (84,902,000,000) | (83,038,000,000) | ||||||||
Purchases | (55,000,000) | (108,000,000) | (198,000,000) | (3,728,000,000) | ||||||||
Dispositions | 324,000,000 | 526,000,000 | 897,000,000 | 1,567,000,000 | ||||||||
Ending balance | $ (84,202,000,000) | $ (85,199,000,000) | $ (84,202,000,000) | $ (85,199,000,000) | ||||||||
[1] | Included AOCI attributable to noncontrolling interests of $(318) million and $(226) million at September 30, 2018 and December 31, 2017, respectively. |
SHAREOWNERS_ EQUITY - Shares of
SHAREOWNERS’ EQUITY - Shares of GE Preferred Stock (Details) - USD ($) | Jan. 20, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Oct. 01, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||||||
Preferred stock issued | $ 6,000,000 | $ 6,000,000 | $ 6,000,000 | $ 6,000,000 | $ 6,000,000 | ||
GE | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock issued | 5,537,000,000 | 5,537,000,000 | |||||
Preferred stock dividends | 39,000,000 | $ 36,000,000 | 260,000,000 | 252,000,000 | |||
Cash dividends on preferred stock | 147,000,000 | $ 147,000,000 | |||||
GE | Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock issued | $ 5,944,000,000 | ||||||
GE | Series D Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock issued | $ 5,694,000,000 | 5,694,000,000 | 5,694,000,000 | ||||
Fixed interest rate | 5.00% | ||||||
Floating rate | 3.33% | ||||||
GE | Series A, B and C Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Fixed interest rate | 4.07% | ||||||
Preferred stock, value outstanding | $ 250,000,000 | ||||||
GE Capital | Series D Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock issued | $ 5,496,000,000 | $ 5,496,000,000 |
SHAREOWNERS_ EQUITY - Changes t
SHAREOWNERS’ EQUITY - Changes to Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Stockholders' Equity Attributable to Noncontrolling Interest | ||||||
Beginning balance | $ 16,685 | $ 1,634 | $ 17,468 | [1] | $ 1,663 | |
Net earnings (loss) | 54 | (114) | 105 | (94) | ||
Dividends | (96) | (99) | (260) | (130) | ||
Other | (260) | 16,279 | (930) | 16,261 | ||
Ending balance | $ 16,383 | [1] | $ 17,701 | 16,383 | [1] | 17,701 |
Baker Hughes | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest | ||||||
Other | $ 15,192 | $ 16,158 | ||||
[1] | Included AOCI attributable to noncontrolling interests of $(318) million and $(226) million at September 30, 2018 and December 31, 2017, respectively. |
SHAREOWNERS_ EQUITY - Redeemabl
SHAREOWNERS’ EQUITY - Redeemable Noncontrolling Interests (Narrative) (Details) € in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018EUR (€) | Sep. 30, 2018 | Dec. 31, 2015joint_venture | |
Redeemable Noncontrolling Interest [Line Items] | |||
Number of joint ventures formed | joint_venture | 3 | ||
Grid Technology and Renewable Energy Joint Ventures | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Annual accretion (as a percent) | 3.00% | ||
Nuclear and French Steam Power Joint Venture | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Annual accretion (as a percent) | 2.00% | ||
Amount to be paid to exercise redemption rights | € 125 | ||
Renewable Energy Joint Venture | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Annual accretion (as a percent) | 3.00% | ||
Amount to be paid to exercise redemption rights | 638 | ||
Grid Technology Joint Venture | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Amount to be paid to exercise redemption rights | € 1,832 |
SHAREOWNERS_ EQUITY - Changes_2
SHAREOWNERS’ EQUITY - Changes to Redeemable Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Redeemable Noncontrolling Interest | ||||
Beginning balance | $ 3,376 | $ 3,185 | $ 3,391 | $ 3,017 |
Net earnings (loss) | (144) | (56) | (293) | (218) |
Dividends | 0 | (12) | (19) | (22) |
Redemption value adjustment | 203 | 70 | 401 | 236 |
Other | (3,049) | 246 | (3,094) | 420 |
Ending balance | $ 386 | $ 3,433 | 386 | $ 3,433 |
Alstom Acquisition | ||||
Redeemable Noncontrolling Interest | ||||
Other | $ (3,028) |
SHAREOWNERS_ EQUITY - Other (De
SHAREOWNERS’ EQUITY - Other (Details) - GE Capital - GE - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Related Party Transaction [Line Items] | ||||
Common dividends | $ 0 | $ 0 | $ 0 | $ 4,105,000,000 |
Cash dividends | $ 4,016,000,000 | $ 4,016,000,000 |
EARNINGS PER SHARE INFORMATIO_2
EARNINGS PER SHARE INFORMATION (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Diluted | ||||
Earnings from continuing operations for per-share calculation | $ (22,812) | $ 1,459 | $ (21,489) | $ 2,815 |
Preferred stock dividends | (39) | (36) | (260) | (252) |
Earnings from continuing operations attributable to common shareowners for per-share calculation | (22,851) | 1,423 | (21,749) | 2,563 |
Loss from discontinued operations for per-share calculation | 36 | (109) | (1,642) | (507) |
Net earnings attributable to GE common shareowners for per-share calculation | $ (22,812) | $ 1,318 | $ (23,383) | $ 2,066 |
Shares of GE common stock outstanding (in shares) | 8,694 | 8,665 | 8,689 | 8,689 |
Employee compensation-related shares (including stock options) (in shares) | 0 | 67 | 0 | 85 |
Total average equivalent shares (in shares) | 8,694 | 8,732 | 8,689 | 8,774 |
Earnings from continuing operations (in dollars per share) | $ (2.63) | $ 0.16 | $ (2.50) | $ 0.29 |
Loss from discontinued operations (in dollars per share) | 0 | (0.01) | (0.19) | (0.06) |
Net earnings (in dollars per share) | $ (2.62) | $ 0.15 | $ (2.69) | $ 0.24 |
Basic | ||||
Earnings from continuing operations for per-share calculation | $ (22,812) | $ 1,459 | $ (21,489) | $ 2,815 |
Preferred stock dividends | (39) | (36) | (260) | (252) |
Earnings from continuing operations attributable to common shareowners for per-share calculation | (22,851) | 1,423 | (21,749) | 2,563 |
Loss from discontinued operations for per-share calculation | 36 | (109) | (1,642) | (507) |
Net earnings attributable to GE common shareowners for per-share calculation | $ (22,812) | $ 1,318 | $ (23,383) | $ 2,066 |
Shares of GE common stock outstanding (in shares) | 8,694 | 8,665 | 8,689 | 8,689 |
Employee compensation-related shares (including stock options) (in shares) | 0 | 0 | 0 | 0 |
Total average equivalent shares (in shares) | 8,694 | 8,665 | 8,689 | 8,689 |
Earnings from continuing operations (in dollars per share) | $ (2.63) | $ 0.16 | $ (2.50) | $ 0.30 |
Loss from discontinued operations (in dollars per share) | 0 | (0.01) | (0.19) | (0.06) |
Net earnings (in dollars per share) | $ (2.62) | $ 0.15 | $ (2.69) | $ 0.24 |
Outstanding stock awards not included in the computation of diluted earnings per share (in shares) | 424 | 82 | 410 | 48 |
FINANCIAL INSTRUMENTS AND NON_3
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Assets and Liabilities Not Carried at Fair Value (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Financial Services (GE Capital) | ||
Liabilities | ||
Decrease in fair value of borrowings | $ 1,016 | $ 1,754 |
Financial Services (GE Capital) | Intercompany payable to GE | ||
Liabilities | ||
Borrowings (debt assumed) | 23,250 | 39,844 |
Carrying amount (net) | Financial Services (GE Capital) | ||
Assets | ||
Loans | 12,744 | 17,363 |
Other commercial mortgages | 1,783 | 1,489 |
Loans held for sale | 1,326 | 3,274 |
Liabilities | ||
Borrowings | 47,000 | 55,353 |
Investment contracts | 2,434 | 2,569 |
Carrying amount (net) | GE | ||
Assets | ||
Notes receivable | 680 | 700 |
Liabilities | ||
Borrowings | 32,558 | 34,473 |
Carrying amount (net) | GE | Intersegment eliminations | Intercompany payable to GE | ||
Liabilities | ||
Borrowings (debt assumed) | 37,000 | 47,114 |
Estimated fair value | Financial Services (GE Capital) | ||
Assets | ||
Loans | 12,737 | 17,331 |
Other commercial mortgages | 1,811 | 1,566 |
Loans held for sale | 1,328 | 3,274 |
Liabilities | ||
Borrowings | 49,460 | 60,415 |
Investment contracts | 2,712 | 2,996 |
Accrued interest | 670 | 731 |
Estimated fair value | GE | ||
Assets | ||
Notes receivable | 674 | 700 |
Liabilities | ||
Borrowings | 31,809 | 35,416 |
Accrued interest | 194 | 217 |
Estimated fair value | GE | Intercompany payable to GE | ||
Liabilities | ||
Accrued interest | 397 | 696 |
Estimated fair value | GE | Intersegment eliminations | Intercompany payable to GE | ||
Liabilities | ||
Borrowings (debt assumed) | $ 40,300 | $ 53,502 |
FINANCIAL INSTRUMENTS AND NON_4
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Notional Amount of Loan Commitments (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Ordinary course of business lending commitments | $ 724 | $ 1,105 |
Unused revolving credit lines | 50 | 198 |
Excluded investment commitments | $ 1,415 | $ 677 |
FINANCIAL INSTRUMENTS AND NON_5
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Notional Amount of Derivatives (Details) $ in Billions | Sep. 30, 2018USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative, notional amount | $ 134 |
FINANCIAL INSTRUMENTS AND NON_6
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Fair Value of Derivatives (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Assets | $ 2,242,000,000 | $ 3,364,000,000 |
Gross accrued interest recognized in statement of financial position | 228,000,000 | 469,000,000 |
Gross derivatives recognized in statement of financial position | 2,471,000,000 | 3,833,000,000 |
Netting adjustments offset in statement of financial position | (978,000,000) | (1,457,000,000) |
Cash collateral offset in statement of financial position | (1,152,000,000) | (1,529,000,000) |
Amounts offset in statement of financial position | (2,129,000,000) | (2,986,000,000) |
Net derivatives | 342,000,000 | 847,000,000 |
Securities held as collateral not offset in statement of financial position | (144,000,000) | (405,000,000) |
Net amount | 198,000,000 | 441,000,000 |
Liabilities | ||
Amount | 1,885,000,000 | 2,361,000,000 |
Gross accrued interest recognized in statement of financial position | (31,000,000) | (38,000,000) |
Gross derivatives recognized in statement of financial position | 1,855,000,000 | 2,323,000,000 |
Netting adjustments offset in statement of financial position | (977,000,000) | (1,456,000,000) |
Cash collateral offset in statement of financial position | (338,000,000) | (578,000,000) |
Amounts offset in statement of financial position | (1,315,000,000) | (2,034,000,000) |
Net derivatives | 540,000,000 | 289,000,000 |
Securities held as collateral not offset in statement of financial position | 0 | 0 |
Net amount | 540,000,000 | 289,000,000 |
Cumulative adjustment for non-performance risk | 0 | (1,000,000) |
Excess cash collateral received | 50,000,000 | 10,000,000 |
Excess cash collateral posted | 420,000,000 | 255,000,000 |
Excess securities collateral received | 0 | 16,000,000 |
Derivatives accounted for as hedges | ||
Assets | ||
Assets | 1,455,000,000 | 2,021,000,000 |
Liabilities | ||
Amount | 468,000,000 | 218,000,000 |
Derivatives accounted for as hedges | Interest rate contracts | ||
Assets | ||
Assets | 1,278,000,000 | 1,862,000,000 |
Liabilities | ||
Amount | 350,000,000 | 148,000,000 |
Derivatives accounted for as hedges | Currency exchange contracts | ||
Assets | ||
Assets | 177,000,000 | 160,000,000 |
Liabilities | ||
Amount | 118,000,000 | 70,000,000 |
Derivatives not accounted for as hedges | ||
Assets | ||
Assets | 787,000,000 | 1,343,000,000 |
Liabilities | ||
Amount | 1,418,000,000 | 2,143,000,000 |
Derivatives not accounted for as hedges | Interest rate contracts | ||
Assets | ||
Assets | 32,000,000 | 93,000,000 |
Liabilities | ||
Amount | (1,000,000) | 8,000,000 |
Derivatives not accounted for as hedges | Currency exchange contracts | ||
Assets | ||
Assets | 674,000,000 | 1,111,000,000 |
Liabilities | ||
Amount | 1,283,000,000 | 2,043,000,000 |
Derivatives not accounted for as hedges | Other contracts | ||
Assets | ||
Assets | 80,000,000 | 139,000,000 |
Liabilities | ||
Amount | $ 135,000,000 | $ 91,000,000 |
FINANCIAL INSTRUMENTS AND NON_7
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Effects of Derivatives on Earnings (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Effect on earnings | $ (243,000,000) | $ (298,000,000) | $ (403,000,000) | $ (717,000,000) | ||
Carrying value of net investment hedges | (12,894,000,000) | (13,213,000,000) | (12,894,000,000) | (13,213,000,000) | ||
Total pre-tax reclassifications from CTA to gain (loss) | (7,000,000) | 78,000,000 | ||||
Total pre-tax reclassifications from CTA to gain (loss) recorded in discontinued operations | 0 | 78,000,000 | ||||
Cash flow hedges | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Effect on hedging instrument | (6,000,000) | 225,000,000 | (25,000,000) | 281,000,000 | ||
Effect on underlying | 7,000,000 | (225,000,000) | $ (2,000,000) | 27,000,000 | (281,000,000) | $ 43,000,000 |
Effect on earnings | 1,000,000 | 0 | 2,000,000 | 0 | ||
Fair value hedges | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Effect on hedging instrument | (362,000,000) | (148,000,000) | (1,285,000,000) | (430,000,000) | ||
Effect on underlying | 333,000,000 | 103,000,000 | 1,200,000,000 | 267,000,000 | ||
Effect on earnings | (29,000,000) | (45,000,000) | (85,000,000) | (162,000,000) | ||
Net investment hedges | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Effect on hedging instrument | (56,000,000) | (1,016,000,000) | 157,000,000 | (2,065,000,000) | ||
Effect on underlying | 62,000,000 | 1,020,000,000 | (144,000,000) | 2,082,000,000 | ||
Effect on earnings | 6,000,000 | 4,000,000 | 14,000,000 | 17,000,000 | ||
Economic hedges | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Effect on hedging instrument | (677,000,000) | 663,000,000 | (1,460,000,000) | 1,304,000,000 | ||
Effect on underlying | 456,000,000 | (920,000,000) | 1,126,000,000 | (1,876,000,000) | ||
Effect on earnings | $ (221,000,000) | $ (257,000,000) | $ (334,000,000) | $ (572,000,000) |
FINANCIAL INSTRUMENTS AND NON_8
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Cash Flow Hedge Activity (Details) - Cash flow hedges - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative [Line Items] | ||||||
Gain (loss) recognized in AOCI | $ (7) | $ 225 | $ 2 | $ (27) | $ 281 | $ (43) |
Gain (loss) reclassified from AOCI into earnings | (2) | 104 | (57) | (9) | 167 | (128) |
Interest rate contracts | ||||||
Derivative [Line Items] | ||||||
Gain (loss) recognized in AOCI | (4) | 1 | 1 | (11) | 3 | 32 |
Gain (loss) reclassified from AOCI into earnings | (4) | (6) | (12) | (10) | (21) | (67) |
Currency exchange contracts | ||||||
Derivative [Line Items] | ||||||
Gain (loss) recognized in AOCI | (3) | 224 | 0 | (16) | 278 | (76) |
Gain (loss) reclassified from AOCI into earnings | 2 | 110 | (46) | 1 | 189 | (59) |
Commodity contracts | ||||||
Derivative [Line Items] | ||||||
Gain (loss) recognized in AOCI | 0 | 0 | 1 | 0 | 0 | 1 |
Gain (loss) reclassified from AOCI into earnings | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (3) |
FINANCIAL INSTRUMENTS AND NON_9
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Effects of Derivative on Earnings (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Pre-tax gain included in AOCI related to cash flow hedges of forecasted transactions | $ 75 | ||
Amount of loss expected to be transferred to earnings as an expense | $ 56 | ||
Maximum term of hedged forecasted transactions | 14 years | 15 years | 16 years |
FINANCIAL INSTRUMENTS AND NO_10
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Counterparty Credit Risk (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Collateral, fair value | $ 1,295 | |
Cash collateral | 1,152 | $ 1,529 |
Securities held as collateral | 144 | 405 |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Net derivative liability | 540 | $ 289 |
Counterparty Credit Risk | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Fair value of cash collateral posted | 338 | |
Exposure to counterparties including interest net collateral, excluding embedded derivatives | 106 | |
Net derivative liability | $ 510 |
FINANCIAL INSTRUMENTS AND NO_11
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Schedule of Non-Recurring Fair Value Amounts (Details) - Non-recurring - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | $ 479 | $ 177 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 3,286 | 4,208 |
Financing receivables | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 0 |
Financing receivables | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 8 | 1,541 |
Equity securities without readily determinable fair value and equity method investments | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 479 | 0 |
Equity securities without readily determinable fair value and equity method investments | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 1,212 | 2,076 |
Long-lived assets | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 177 |
Long-lived assets | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 413 | 591 |
Goodwill | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 0 |
Goodwill | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | $ 1,653 | $ 0 |
FINANCIAL INSTRUMENTS AND NO_12
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Schedule of Fair Value Adjustments (Details) - Non-recurring - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value adjustments to assets | $ (23,079) | $ (1,676) | $ (23,391) | $ (1,748) |
Financing receivables | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value adjustments to assets | 0 | (1) | (2) | (1) |
Equity securities without readily determinable fair value and equity method investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value adjustments to assets | (240) | (58) | (441) | (89) |
Long-lived assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value adjustments to assets | (865) | (671) | (975) | (712) |
Goodwill | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value adjustments to assets | $ (21,973) | $ (947) | $ (21,973) | $ (947) |
FINANCIAL INSTRUMENTS AND NO_13
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Schedule of Level 3 Measurements (Details) - Non-recurring - Level 3 $ in Millions | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities without readily determinable fair value and equity method investments | $ 769 | $ 2,037 |
Long-lived assets | $ 352 | 554 |
Financing receivables | $ 1,532 | |
Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities without readily determinable fair value and equity method investments, range (as a percent) | 0.065 | 0.050 |
Long-lived assets, range (as a percent) | 0.029 | 0.027 |
Financing receivables, range (as a percent) | 0.032 | |
Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities without readily determinable fair value and equity method investments, range (as a percent) | 0.50 | 0.500 |
Long-lived assets, range (as a percent) | 0.400 | 0.180 |
Financing receivables, range (as a percent) | 0.165 | |
Discount rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity securities without readily determinable fair value and equity method investments, range (as a percent) | 0.089 | 0.077 |
Long-lived assets, range (as a percent) | 0.223 | 0.073 |
Financing receivables, range (as a percent) | 0.100 |
FINANCIAL INSTRUMENTS AND NO_14
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Non-recurring Fair Value Measurements (Details) - Non-recurring - Level 3 - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other non-recurring fair value measurements | $ 103 | |
Non-binding broker quotes or other third-party sources | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other non-recurring fair value measurements | $ 409 | $ 83 |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)joint_venture | Sep. 30, 2017USD ($) | Dec. 31, 2015joint_venture | Dec. 31, 2017USD ($) | |
Variable Interest Entity [Line Items] | ||||||
Number of joint ventures formed | joint_venture | 3 | |||||
Revenues | $ 29,573,000,000 | $ 30,662,000,000 | $ 88,337,000,000 | $ 86,640,000,000 | ||
BHGE LLC | ||||||
Variable Interest Entity [Line Items] | ||||||
Economic interest in the partnership (as a percent) | 62.50% | |||||
Alstom acquisition | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of joint ventures formed | joint_venture | 3 | |||||
Consolidated VIEs | ||||||
Variable Interest Entity [Line Items] | ||||||
Revenues | 141,000,000 | 293,000,000 | $ 479,000,000 | 801,000,000 | ||
Cost of goods sold | 41,000,000 | $ 78,000,000 | 174,000,000 | $ 256,000,000 | ||
Third-party investors | ||||||
Variable Interest Entity [Line Items] | ||||||
Commingled cash owed to third-party investors | 21,000,000 | 21,000,000 | $ 60,000,000 | |||
Unconsolidated VIEs | ||||||
Variable Interest Entity [Line Items] | ||||||
Investments in unconsolidated VIEs | 4,387,000,000 | 4,387,000,000 | 5,833,000,000 | |||
Unconsolidated VIEs | Held for Sale | Energy Financial Services | ||||||
Variable Interest Entity [Line Items] | ||||||
Investments in unconsolidated VIEs | $ 217,000,000 | $ 217,000,000 | $ 0 |
VARIABLE INTEREST ENTITIES - Sc
VARIABLE INTEREST ENTITIES - Schedule of Assets and Liabilities of Consolidated VIEs (Details) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($)funding_vehicle | Dec. 31, 2017USD ($) | |
Variable Interest Entity [Line Items] | ||
Assets | $ 5,248 | |
Borrowings | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 1,622 | |
Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 5,570 | $ 6,028 |
Liabilities | 4,620 | 4,642 |
Consolidated VIE | Financing receivables, net | ||
Variable Interest Entity [Line Items] | ||
Assets | 2,491 | 792 |
Consolidated VIE | Current receivables | ||
Variable Interest Entity [Line Items] | ||
Assets | 540 | 630 |
Consolidated VIE | Investment securities | ||
Variable Interest Entity [Line Items] | ||
Assets | 918 | |
Consolidated VIE | Other assets | ||
Variable Interest Entity [Line Items] | ||
Assets | 2,540 | 3,688 |
Consolidated VIE | Borrowings | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 984 | 1,066 |
Consolidated VIE | Non-recourse borrowings | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 1,622 | 685 |
Consolidated VIE | Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Liabilities | $ 2,015 | 2,891 |
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 | $ 1,318 | 1,752 |
Liabilities | 1,229 | 1,690 |
GE Capital | Customer Notes receivables | Financing receivables, net | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
GE Capital | Customer Notes receivables | Current receivables | ||
Variable Interest Entity [Line Items] | ||
Assets | 457 | 570 |
GE Capital | Customer Notes receivables | Investment securities | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | |
GE Capital | Customer Notes receivables | Other assets | ||
Variable Interest Entity [Line Items] | ||
Assets | 862 | 1,182 |
GE Capital | Customer Notes receivables | Borrowings | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 0 | 0 |
GE Capital | Customer Notes receivables | Non-recourse borrowings | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 585 | 669 |
GE Capital | Customer Notes receivables | Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 644 | 1,021 |
GE Capital | Trade receivables | ||
Variable Interest Entity [Line Items] | ||
Assets | 1,678 | 0 |
Liabilities | 1,612 | 0 |
GE Capital | Trade receivables | Financing receivables, net | ||
Variable Interest Entity [Line Items] | ||
Assets | 1,540 | 0 |
GE Capital | Trade receivables | Current receivables | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
GE Capital | Trade receivables | Investment securities | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | |
GE Capital | Trade receivables | Other assets | ||
Variable Interest Entity [Line Items] | ||
Assets | 138 | 0 |
GE Capital | Trade receivables | Borrowings | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 0 | 0 |
GE Capital | Trade receivables | Non-recourse borrowings | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 1,037 | 0 |
GE Capital | Trade receivables | Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 575 | 0 |
GE Capital | Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 2,037 | 3,630 |
Liabilities | 1,522 | 2,568 |
GE Capital | Other | Financing receivables, net | ||
Variable Interest Entity [Line Items] | ||
Assets | 951 | 792 |
GE Capital | Other | Current receivables | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
GE Capital | Other | Investment securities | ||
Variable Interest Entity [Line Items] | ||
Assets | 918 | |
GE Capital | Other | Other assets | ||
Variable Interest Entity [Line Items] | ||
Assets | 1,086 | 1,920 |
GE Capital | Other | Borrowings | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 938 | 1,027 |
GE Capital | Other | Non-recourse borrowings | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 0 | 16 |
GE Capital | Other | Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 584 | 1,525 |
EIC | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 1,470 | |
Liabilities | $ 959 | |
Beneficial interest (as a percent) | 100.00% | |
GE | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 538 | $ 646 |
Liabilities | 257 | 384 |
GE | Consolidated VIE | Financing receivables, net | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
GE | Consolidated VIE | Current receivables | ||
Variable Interest Entity [Line Items] | ||
Assets | 83 | 59 |
GE | Consolidated VIE | Investment securities | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | |
GE | Consolidated VIE | Other assets | ||
Variable Interest Entity [Line Items] | ||
Assets | 455 | 586 |
GE | Consolidated VIE | Borrowings | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 46 | 39 |
GE | Consolidated VIE | Non-recourse borrowings | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 0 | 0 |
GE | Consolidated VIE | Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Liabilities | $ 212 | $ 345 |
COMMITMENTS, GUARANTEES, PROD_3
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - Commitments (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
GECAS | New aircraft | |
Long-term Purchase Commitment [Line Items] | |
List prices of multiple-year orders | $ 35,412 |
GECAS | Used aircraft | |
Long-term Purchase Commitment [Line Items] | |
List prices of multiple-year orders | 2,643 |
Aviation | |
Long-term Purchase Commitment [Line Items] | |
Commitment to provide financing assistance | $ 2,902 |
COMMITMENTS, GUARANTEES, PROD_4
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - Guarantees (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Guarantor Obligations [Line Items] | ||
Liability for indemnification agreements | $ 19,913 | $ 20,784 |
Credit support | ||
Guarantor Obligations [Line Items] | ||
Commitments | 1,544 | |
Liability | 80 | |
Indemnification agreements | ||
Guarantor Obligations [Line Items] | ||
Commitments | 1,953 | |
Liability | 6 | |
Required funding under residual value guarantees | 222 | |
Liability for indemnification agreements | 259 | |
Indemnification agreements - discontinued operations | ||
Guarantor Obligations [Line Items] | ||
Commitments | 2,286 | |
Liability for indemnification agreements | $ 264 |
COMMITMENTS, GUARANTEES, PROD_5
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - Schedule of Product Warranties (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Movement in Standard Product Warranty Accrual | ||
Balance at January 1 | $ 2,348 | $ 1,929 |
Current-year provisions | 788 | 606 |
Expenditures | (735) | (598) |
Other changes | 134 | 255 |
Balance as of September 30 | $ 2,534 | $ 2,191 |
COMMITMENTS, GUARANTEES, PROD_6
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - WMC Legal Matters (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||||||||
Claims reflecting purchase price or unpaid principal balances of the loans at the time of purchase | $ 970 | $ 970 | |||||||
Potential Violation of FIRREA by WMC and GE Capital | |||||||||
Loss Contingencies [Line Items] | |||||||||
Reserve provision | $ 1,500 | ||||||||
Disposed of by Sale | WMC | |||||||||
Loss Contingencies [Line Items] | |||||||||
Active claims for alleged breaches of representations and warranties on mortgage loans | 144 | 144 | $ 462 | ||||||
Additional claims asserted against WMC in litigation without making a prior claim | 826 | 826 | 3,198 | ||||||
Reserves | 245 | $ 647 | 245 | $ 647 | $ 294 | $ 416 | $ 636 | $ 626 | |
Net decrease to reserves due to settlements | 171 | ||||||||
Reserve provision | (9) | $ 11 | (4) | $ 21 | |||||
Disposed of by Sale | WMC | Minimum | |||||||||
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 |
COMMITMENTS, GUARANTEES, PROD_7
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - Rollforward of the Reserve (Details) - Disposed of by sale - WMC - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Loss Contingency Accrual | ||||
Balance, beginning of period | $ 294 | $ 636 | $ 416 | $ 626 |
Provision | (9) | 11 | (4) | 21 |
Claim resolutions / rescissions | (40) | 0 | (167) | 0 |
Balance, end of period | $ 245 | $ 647 | $ 245 | $ 647 |
COMMITMENTS, GUARANTEES, PROD_8
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - Alston Legacy Matters (Details) - Alstom Legacy Matters € in Millions, $ in Millions | Nov. 02, 2015USD ($)significant_case | Dec. 31, 2014USD ($) | Jan. 31, 2007EUR (€) | Sep. 30, 2018USD ($) |
Loss Contingencies [Line Items] | ||||
Number of significant cases involving anti-competitive activities and improper payments | significant_case | 2 | |||
Fine for participating in gas insulated switchgear cartel | € | € 65 | |||
Reduced fine | € | € 59 | |||
Criminal penalty paid | $ | $ 772 | |||
Reserve established for legal and compliance matters | $ | $ 858 | $ 913 |
CASH FLOWS INFORMATION (Details
CASH FLOWS INFORMATION (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
All other operating activities | ||
All other operating activities | $ (6,739) | $ (1,320) |
Employer contributions | (6,000) | |
All other investing activities | ||
All other investing activities | 3,764 | 7,800 |
Net dispositions (purchases) of GE shares for treasury | ||
Net dispositions (purchases) of GE shares for treasury | (6) | (2,620) |
GE | ||
All other operating activities | ||
(Gains) losses on purchases and sales of business interests | (476) | (1,955) |
Other gains on investing activities | (436) | (68) |
Income taxes | (803) | (897) |
Principal pension plans | (2,968) | 1,179 |
Other postretirement benefit plans | (916) | (543) |
Restructuring and other charges | 878 | 1,429 |
Change in accruals for contract related costs | (792) | (59) |
Other | (802) | (1,245) |
All other operating activities | (6,315) | (2,160) |
Pre-tax (gains) losses on planned business dispositions | 511 | |
Current tax expense (benefit) | 479 | 909 |
Net cash paid for income taxes | (1,283) | (1,806) |
Pension costs (income) | 3,218 | 2,779 |
Other postretirement plans costs (income) | (143) | 315 |
Restructuring and other charges | 2,211 | 3,017 |
Restructuring and other cash expenditures | (1,333) | (1,588) |
All other investing activities | ||
Derivative settlements (net) | (436) | (1,420) |
Investments in intangible assets (net) | (472) | (376) |
Other | 154 | (159) |
All other investing activities | (754) | (1,955) |
Net dispositions (purchases) of GE shares for treasury | ||
Open market purchases under share repurchase program | (180) | (3,394) |
Other purchases | (18) | (58) |
Dispositions | 192 | 831 |
Net dispositions (purchases) of GE shares for treasury | (6) | (2,620) |
GE | Pension Plan | ||
All other operating activities | ||
Employer contributions | (6,186) | (1,600) |
GE | Other Postretirement Plan | ||
All other operating activities | ||
Employer contributions | (773) | (858) |
GE | Disposed of by Sale | Value Based Care | ||
All other operating activities | ||
Pre-tax (gains) losses on sales of businesses | (681) | |
GE | Disposed of by Sale | Industrial Solutions | ||
All other operating activities | ||
Pre-tax (gains) losses on sales of businesses | $ (298) | |
GE | Disposed of by Sale | Water | ||
All other operating activities | ||
Pre-tax (gains) losses on sales of businesses | $ (1,885) |
INTERCOMPANY TRANSACTIONS (Deta
INTERCOMPANY TRANSACTIONS (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities-continuing operations | $ (333) | $ 3,381 |
Total cash from (used for) investing activities-continuing operations | 8,064 | 5,259 |
Total cash from (used for) financing activities-continuing operations | (24,326) | (18,228) |
GE and GE Capital totals | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities-continuing operations | (3,631) | 6,104 |
Total cash from (used for) investing activities-continuing operations | 6,931 | 858 |
Total cash from (used for) financing activities-continuing operations | (19,895) | (16,549) |
GE and GE Capital totals | Affiliated Entity | GE current receivables sold to GE Capital | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities-continuing operations | 3,792 | 941 |
Total cash from (used for) investing activities-continuing operations | (5,085) | (1,358) |
Total cash from (used for) financing activities-continuing operations | 1,293 | 417 |
GE and GE Capital totals | Affiliated Entity | GE Capital common dividends to GE | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities-continuing operations | 0 | (4,016) |
Total cash from (used for) financing activities-continuing operations | 0 | 4,016 |
GE and GE Capital totals | Affiliated Entity | GE Capital long-term loans to GE | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) investing activities-continuing operations | 5,999 | 7,271 |
Total cash from (used for) financing activities-continuing operations | (5,999) | (7,271) |
GE and GE Capital totals | Affiliated Entity | GE Capital short-term loans to GE | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) investing activities-continuing operations | 480 | (1,329) |
Total cash from (used for) financing activities-continuing operations | (480) | 1,329 |
Other reclassifications and eliminations | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities-continuing operations | (494) | 353 |
Total cash from (used for) investing activities-continuing operations | (260) | (183) |
Total cash from (used for) financing activities-continuing operations | 754 | (170) |
Financing of long-term receivables | $ 851 | $ (432) |
GUARANTOR FINANCIAL INFORMATI_3
GUARANTOR FINANCIAL INFORMATION - Condensed Consolidating Statement of Earnings (Loss) and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues | ||||
Sales of goods and services | $ 27,465 | $ 28,764 | $ 82,432 | $ 80,456 |
GE Capital revenues from services | 2,109 | 1,898 | 5,905 | 6,184 |
Total revenues | 29,573 | 30,662 | 88,337 | 86,640 |
Costs and expenses | ||||
Interest and other financial charges | 1,227 | 1,232 | 3,807 | 3,545 |
Other costs and expenses | 51,288 | 30,850 | 106,797 | 83,968 |
Total costs and expenses | 52,515 | 32,082 | 110,604 | 87,512 |
Other income (loss) | 205 | 2,165 | 1,275 | 2,692 |
Equity in earnings (loss) of affiliates | 0 | 0 | 0 | 0 |
Earnings (loss) from continuing operations before income taxes | (22,736) | 746 | (20,992) | 1,820 |
Benefit (provision) for income taxes | (162) | 551 | (677) | 693 |
Earnings (loss) from continuing operations | (22,899) | 1,297 | (21,670) | 2,513 |
Earnings (loss) from discontinued operations, net of taxes | 39 | (106) | (1,634) | (490) |
Net earnings (loss) | (22,859) | 1,191 | (23,304) | 2,023 |
Less net earnings (loss) attributable to noncontrolling interests | (90) | (169) | (188) | (312) |
Net earnings (loss) attributable to the Company | (22,769) | 1,360 | (23,116) | 2,334 |
Other comprehensive income (loss) | 203 | 922 | 1,174 | 4,053 |
Comprehensive income (loss) attributable to the Company | (22,566) | 2,282 | (21,941) | 6,387 |
Reportable Legal Entities | Parent Company Guarantor | ||||
Revenues | ||||
Sales of goods and services | 8,382 | 8,025 | 24,033 | 24,897 |
GE Capital revenues from services | 0 | 0 | 0 | 0 |
Total revenues | 8,382 | 8,025 | 24,033 | 24,897 |
Costs and expenses | ||||
Interest and other financial charges | 1,796 | 1,671 | 5,043 | 3,348 |
Other costs and expenses | 9,655 | 9,418 | 29,484 | 27,618 |
Total costs and expenses | 11,451 | 11,089 | 34,528 | 30,966 |
Other income (loss) | 1,705 | (1,152) | 3,600 | (1,041) |
Equity in earnings (loss) of affiliates | (21,669) | 5,219 | (14,635) | 8,956 |
Earnings (loss) from continuing operations before income taxes | (23,032) | 1,003 | (21,529) | 1,846 |
Benefit (provision) for income taxes | 224 | 470 | 47 | 989 |
Earnings (loss) from continuing operations | (22,808) | 1,473 | (21,482) | 2,835 |
Earnings (loss) from discontinued operations, net of taxes | 39 | (113) | (1,634) | (501) |
Net earnings (loss) | (22,769) | 1,360 | (23,116) | 2,334 |
Less net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to the Company | (22,769) | 1,360 | (23,116) | 2,334 |
Other comprehensive income (loss) | 203 | 922 | 1,174 | 4,053 |
Comprehensive income (loss) attributable to the Company | (22,566) | 2,282 | (21,941) | 6,387 |
Reportable Legal Entities | Subsidiary Issuer | ||||
Revenues | ||||
Sales of goods and services | 0 | 0 | 0 | 0 |
GE Capital revenues from services | 237 | 176 | 678 | 505 |
Total revenues | 237 | 176 | 678 | 505 |
Costs and expenses | ||||
Interest and other financial charges | 236 | 168 | 671 | 477 |
Other costs and expenses | 0 | 0 | 0 | 0 |
Total costs and expenses | 236 | 168 | 672 | 478 |
Other income (loss) | 0 | 0 | 0 | 0 |
Equity in earnings (loss) of affiliates | 0 | 0 | 0 | 0 |
Earnings (loss) from continuing operations before income taxes | 2 | 7 | 7 | 27 |
Benefit (provision) for income taxes | 0 | (1) | (1) | (3) |
Earnings (loss) from continuing operations | 1 | 6 | 6 | 24 |
Earnings (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | 0 |
Net earnings (loss) | 1 | 6 | 6 | 24 |
Less net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to the Company | 1 | 6 | 6 | 24 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to the Company | 1 | 6 | 6 | 24 |
Reportable Legal Entities | Subsidiary Guarantor | ||||
Revenues | ||||
Sales of goods and services | 0 | 0 | 0 | 0 |
GE Capital revenues from services | 300 | 209 | 852 | 583 |
Total revenues | 300 | 209 | 852 | 583 |
Costs and expenses | ||||
Interest and other financial charges | 725 | 542 | 1,889 | 1,485 |
Other costs and expenses | 0 | 0 | 0 | 22 |
Total costs and expenses | 725 | 542 | 1,889 | 1,507 |
Other income (loss) | 0 | 0 | 0 | 0 |
Equity in earnings (loss) of affiliates | 705 | 1,019 | 1,199 | 1,711 |
Earnings (loss) from continuing operations before income taxes | 281 | 686 | 161 | 787 |
Benefit (provision) for income taxes | 0 | 0 | 0 | 115 |
Earnings (loss) from continuing operations | 281 | 686 | 161 | 902 |
Earnings (loss) from discontinued operations, net of taxes | 18 | (562) | (63) | (284) |
Net earnings (loss) | 298 | 125 | 98 | 618 |
Less net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to the Company | 298 | 125 | 98 | 618 |
Other comprehensive income (loss) | 12 | (187) | (42) | 463 |
Comprehensive income (loss) attributable to the Company | 310 | (62) | 56 | 1,081 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||
Revenues | ||||
Sales of goods and services | 39,401 | 40,741 | 118,381 | 114,446 |
GE Capital revenues from services | 2,804 | 2,785 | 6,955 | 7,644 |
Total revenues | 42,205 | 43,526 | 125,336 | 122,090 |
Costs and expenses | ||||
Interest and other financial charges | 1,168 | 1,279 | 3,812 | 3,582 |
Other costs and expenses | 40,331 | 40,253 | 116,846 | 113,764 |
Total costs and expenses | 41,498 | 41,533 | 120,658 | 117,346 |
Other income (loss) | 7,503 | 25,159 | 8,600 | 57,784 |
Equity in earnings (loss) of affiliates | 16,288 | 21,123 | 28,378 | 71,787 |
Earnings (loss) from continuing operations before income taxes | 24,499 | 48,275 | 41,657 | 134,315 |
Benefit (provision) for income taxes | (536) | (59) | (1,098) | (758) |
Earnings (loss) from continuing operations | 23,963 | 48,216 | 40,559 | 133,557 |
Earnings (loss) from discontinued operations, net of taxes | 0 | 4 | 1 | 7 |
Net earnings (loss) | 23,963 | 48,220 | 40,560 | 133,564 |
Less net earnings (loss) attributable to noncontrolling interests | (81) | (21) | (202) | (53) |
Net earnings (loss) attributable to the Company | 24,044 | 48,241 | 40,762 | 133,618 |
Other comprehensive income (loss) | (751) | 19,935 | (2,382) | (7,059) |
Comprehensive income (loss) attributable to the Company | 23,293 | 68,176 | 38,380 | 126,559 |
Consolidating Adjustments | ||||
Revenues | ||||
Sales of goods and services | (20,319) | (20,001) | (59,983) | (58,887) |
GE Capital revenues from services | (1,233) | (1,272) | (2,579) | (2,548) |
Total revenues | (21,552) | (21,274) | (62,562) | (61,435) |
Costs and expenses | ||||
Interest and other financial charges | (2,697) | (2,428) | (7,609) | (5,348) |
Other costs and expenses | 1,302 | (18,822) | (39,533) | (57,436) |
Total costs and expenses | (1,395) | (21,250) | (47,142) | (62,784) |
Other income (loss) | (9,002) | (21,842) | (10,926) | (54,051) |
Equity in earnings (loss) of affiliates | 4,675 | (27,361) | (14,942) | (82,454) |
Earnings (loss) from continuing operations before income taxes | (24,485) | (49,226) | (41,289) | (135,155) |
Benefit (provision) for income taxes | 149 | 141 | 374 | 351 |
Earnings (loss) from continuing operations | (24,335) | (49,085) | (40,914) | (134,804) |
Earnings (loss) from discontinued operations, net of taxes | (17) | 565 | 62 | 287 |
Net earnings (loss) | (24,353) | (48,521) | (40,852) | (134,517) |
Less net earnings (loss) attributable to noncontrolling interests | (9) | (148) | 14 | (258) |
Net earnings (loss) attributable to the Company | (24,343) | (48,372) | (40,866) | (134,259) |
Other comprehensive income (loss) | 739 | (19,749) | 2,425 | 6,596 |
Comprehensive income (loss) attributable to the Company | $ (23,604) | $ (68,121) | $ (38,442) | $ (127,663) |
GUARANTOR FINANCIAL INFORMATI_4
GUARANTOR FINANCIAL INFORMATION - Condensed Consolidating Statement of Financial Position (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |||
Assets | |||||||||
Cash, cash equivalents and restricted cash | $ 26,932 | [1] | $ 43,967 | [1] | $ 40,449 | ||||
Investment securities | 34,761 | 38,696 | |||||||
Receivables - net | 34,448 | 40,846 | |||||||
Inventories | 20,642 | 19,419 | |||||||
Property, plant and equipment - net | 50,638 | 53,874 | |||||||
Investment in subsidiaries | 0 | 0 | |||||||
Goodwill and intangible assets | 79,216 | 104,242 | |||||||
All other assets | 60,339 | 62,288 | |||||||
Assets of discontinued operations | 4,716 | 5,912 | |||||||
Total assets | [2] | 311,691 | 369,245 | ||||||
Liabilities and equity | |||||||||
Short-term borrowings | 15,206 | 24,036 | |||||||
Accounts payable | 15,748 | 15,172 | |||||||
Other current liabilities | 39,562 | 40,088 | |||||||
Long-term and non-recourse borrowings | 99,760 | 110,556 | |||||||
All other liabilities | 91,190 | 101,797 | |||||||
Liabilities of discontinued operations | 2,002 | 706 | |||||||
Total Liabilities | [2] | 263,468 | 292,355 | ||||||
Redeemable noncontrolling interests | 386 | $ 3,376 | 3,391 | 3,433 | $ 3,185 | $ 3,017 | |||
GE shareowners' equity | 31,454 | 56,030 | 69,051 | ||||||
Noncontrolling interests | 16,383 | [3] | $ 16,685 | 17,468 | [3] | 17,701 | $ 1,634 | $ 1,663 | |
Total equity (Note 15) | 47,837 | 73,498 | 86,751 | ||||||
Total liabilities, redeemable noncontrolling interests and equity | 311,691 | 369,245 | |||||||
Subsidiary Guarantor | Subsidiaries of the Subsidiary Guarantor | |||||||||
Liabilities and equity | |||||||||
Cash and cash equivalent balances within subsidiaries | 7,462 | 15,225 | |||||||
Net assets of discontinued operations | 3,229 | 4,318 | |||||||
Reportable Legal Entities | Parent Company Guarantor | |||||||||
Assets | |||||||||
Cash, cash equivalents and restricted cash | 2,289 | 3,472 | 738 | ||||||
Investment securities | 0 | 1 | |||||||
Receivables - net | 32,989 | 50,923 | |||||||
Inventories | 4,938 | 4,587 | |||||||
Property, plant and equipment - net | 5,724 | 5,808 | |||||||
Investment in subsidiaries | 265,584 | 277,929 | |||||||
Goodwill and intangible assets | 8,700 | 8,014 | |||||||
All other assets | 8,955 | 30,737 | |||||||
Assets of discontinued operations | 0 | 0 | |||||||
Total assets | 329,180 | 381,472 | |||||||
Liabilities and equity | |||||||||
Short-term borrowings | 177,698 | 191,807 | |||||||
Accounts payable | 7,760 | 8,126 | |||||||
Other current liabilities | 14,858 | 11,892 | |||||||
Long-term and non-recourse borrowings | 61,253 | 71,023 | |||||||
All other liabilities | 36,157 | 42,594 | |||||||
Liabilities of discontinued operations | 0 | 0 | |||||||
Total Liabilities | 297,726 | 325,442 | |||||||
Redeemable noncontrolling interests | 0 | 0 | |||||||
GE shareowners' equity | 31,454 | 56,030 | |||||||
Noncontrolling interests | 0 | 0 | |||||||
Total equity (Note 15) | 31,454 | 56,030 | |||||||
Total liabilities, redeemable noncontrolling interests and equity | 329,180 | 381,472 | |||||||
Reportable Legal Entities | Subsidiary Issuer | |||||||||
Assets | |||||||||
Cash, cash equivalents and restricted cash | 0 | 0 | 0 | ||||||
Investment securities | 0 | 0 | |||||||
Receivables - net | 17,585 | 17,316 | |||||||
Inventories | 0 | 0 | |||||||
Property, plant and equipment - net | 0 | 0 | |||||||
Investment in subsidiaries | 0 | 0 | |||||||
Goodwill and intangible assets | 0 | 0 | |||||||
All other assets | 16 | 16 | |||||||
Assets of discontinued operations | 0 | 0 | |||||||
Total assets | 17,601 | 17,332 | |||||||
Liabilities and equity | |||||||||
Short-term borrowings | 0 | 0 | |||||||
Accounts payable | 0 | 0 | |||||||
Other current liabilities | 9 | 8 | |||||||
Long-term and non-recourse borrowings | 15,894 | 16,632 | |||||||
All other liabilities | 675 | 475 | |||||||
Liabilities of discontinued operations | 0 | 0 | |||||||
Total Liabilities | 16,579 | 17,116 | |||||||
Redeemable noncontrolling interests | 0 | 0 | |||||||
GE shareowners' equity | 1,022 | 216 | |||||||
Noncontrolling interests | 0 | 0 | |||||||
Total equity (Note 15) | 1,022 | 216 | |||||||
Total liabilities, redeemable noncontrolling interests and equity | 17,601 | 17,332 | |||||||
Reportable Legal Entities | Subsidiary Guarantor | |||||||||
Assets | |||||||||
Cash, cash equivalents and restricted cash | 15 | 3 | 45 | ||||||
Investment securities | 0 | 0 | |||||||
Receivables - net | 33,060 | 32,381 | |||||||
Inventories | 0 | 0 | |||||||
Property, plant and equipment - net | 0 | 0 | |||||||
Investment in subsidiaries | 78,891 | 77,488 | |||||||
Goodwill and intangible assets | 0 | 0 | |||||||
All other assets | 0 | 32 | |||||||
Assets of discontinued operations | 0 | 0 | |||||||
Total assets | 111,965 | 109,904 | |||||||
Liabilities and equity | |||||||||
Short-term borrowings | 47,649 | 46,033 | |||||||
Accounts payable | 0 | 0 | |||||||
Other current liabilities | 3 | 3 | |||||||
Long-term and non-recourse borrowings | 35,223 | 34,730 | |||||||
All other liabilities | 153 | 128 | |||||||
Liabilities of discontinued operations | 0 | 0 | |||||||
Total Liabilities | 83,027 | 80,894 | |||||||
Redeemable noncontrolling interests | 0 | 0 | |||||||
GE shareowners' equity | 28,938 | 29,010 | |||||||
Noncontrolling interests | 0 | 0 | |||||||
Total equity (Note 15) | 28,938 | 29,010 | |||||||
Total liabilities, redeemable noncontrolling interests and equity | 111,965 | 109,904 | |||||||
Reportable Legal Entities | Non- Guarantor Subsidiaries | |||||||||
Assets | |||||||||
Cash, cash equivalents and restricted cash | 25,048 | 41,236 | 40,172 | ||||||
Investment securities | 35,388 | 39,809 | |||||||
Receivables - net | 75,611 | 87,776 | |||||||
Inventories | 21,020 | 22,215 | |||||||
Property, plant and equipment - net | 46,676 | 48,516 | |||||||
Investment in subsidiaries | 726,516 | 715,936 | |||||||
Goodwill and intangible assets | 85,898 | 90,226 | |||||||
All other assets | 227,348 | 236,771 | |||||||
Assets of discontinued operations | 0 | 0 | |||||||
Total assets | 1,243,505 | 1,282,485 | |||||||
Liabilities and equity | |||||||||
Short-term borrowings | 12,830 | 22,603 | |||||||
Accounts payable | 54,412 | 77,509 | |||||||
Other current liabilities | 31,540 | 28,218 | |||||||
Long-term and non-recourse borrowings | 42,668 | 55,367 | |||||||
All other liabilities | 60,444 | 66,293 | |||||||
Liabilities of discontinued operations | 0 | 0 | |||||||
Total Liabilities | 201,893 | 249,991 | |||||||
Redeemable noncontrolling interests | 288 | 2,627 | |||||||
GE shareowners' equity | 1,040,130 | 1,028,311 | |||||||
Noncontrolling interests | 1,195 | 1,556 | |||||||
Total equity (Note 15) | 1,041,324 | 1,029,867 | |||||||
Total liabilities, redeemable noncontrolling interests and equity | 1,243,505 | 1,282,485 | |||||||
Consolidating Adjustments | |||||||||
Assets | |||||||||
Cash, cash equivalents and restricted cash | (420) | (743) | $ (506) | ||||||
Investment securities | (627) | (1,113) | |||||||
Receivables - net | (124,797) | (147,551) | |||||||
Inventories | (5,316) | (7,383) | |||||||
Property, plant and equipment - net | (1,763) | (450) | |||||||
Investment in subsidiaries | (1,070,991) | (1,071,353) | |||||||
Goodwill and intangible assets | (15,383) | 6,002 | |||||||
All other assets | (175,980) | (205,269) | |||||||
Assets of discontinued operations | 4,716 | 5,912 | |||||||
Total assets | (1,390,561) | (1,421,948) | |||||||
Liabilities and equity | |||||||||
Short-term borrowings | (222,971) | (236,407) | |||||||
Accounts payable | (46,424) | (70,462) | |||||||
Other current liabilities | (6,847) | (34) | |||||||
Long-term and non-recourse borrowings | (55,279) | (67,197) | |||||||
All other liabilities | (6,239) | (7,694) | |||||||
Liabilities of discontinued operations | 2,002 | 706 | |||||||
Total Liabilities | (335,757) | (381,088) | |||||||
Redeemable noncontrolling interests | 98 | 764 | |||||||
GE shareowners' equity | (1,070,090) | (1,057,537) | |||||||
Noncontrolling interests | 15,188 | 15,912 | |||||||
Total equity (Note 15) | (1,054,902) | (1,041,625) | |||||||
Total liabilities, redeemable noncontrolling interests and equity | $ (1,390,561) | $ (1,421,948) | |||||||
[1] | Includes restricted cash of $454 million and $668 million at September 30, 2018 and December 31, 2017, respectively. | ||||||||
[2] | Our consolidated assets at September 30, 2018 included total assets of $5,248 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 $2,986 million within continuing operations and assets of discontinued operations of $109 million. Our consolidated liabilities at September 30, 2018 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 $(1,622) million within continuing operations. See Note 18. | ||||||||
[3] | Included AOCI attributable to noncontrolling interests of $(318) million and $(226) million at September 30, 2018 and December 31, 2017, respectively. |
GUARANTOR FINANCIAL INFORMATI_5
GUARANTOR FINANCIAL INFORMATION - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |||
Cash flows – operating activities | |||||
Cash from (used for) operating activities - continuing operations | $ (333) | $ 3,381 | |||
Cash from (used for) operating activities - discontinued operations | (102) | (490) | |||
Cash from (used for) operating activities | (435) | 2,892 | |||
Cash flows – investing activities | |||||
Cash from (used for) investing activities – continuing operations | 8,064 | 5,259 | |||
Cash from (used for) investing activities – discontinued operations | (224) | (2,515) | |||
Cash from (used for) investing activities | 7,840 | 2,744 | |||
Cash flows – financing activities | |||||
Cash from (used for) financing activities – continuing operations | (24,326) | (18,228) | |||
Cash from (used for) financing activities – discontinued operations | 0 | 1,905 | |||
Cash from (used for) financing activities | (24,326) | (16,323) | |||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | (440) | 1,253 | |||
Increase (decrease) in cash, cash equivalents and restricted cash | (17,361) | (9,434) | |||
Cash, cash equivalents and restricted cash at beginning of year | 44,724 | 50,384 | $ 50,384 | ||
Cash, cash equivalents and restricted cash at September 30 | 27,364 | 40,950 | 44,724 | ||
Less cash, cash equivalents and restricted cash of discontinued operations at September 30 | 432 | 501 | |||
Cash, cash equivalents and restricted cash of continuing operations at September 30 | 26,932 | [1] | 40,449 | 43,967 | [1] |
Reportable Legal Entities | |||||
Cash flows – operating activities | |||||
Cash from (used for) operating activities - continuing operations | (3,631) | 6,104 | |||
Cash flows – investing activities | |||||
Cash from (used for) investing activities – continuing operations | 6,931 | 858 | |||
Cash flows – financing activities | |||||
Cash from (used for) financing activities – continuing operations | (19,895) | (16,549) | |||
Reportable Legal Entities | Parent Company Guarantor | |||||
Cash flows – operating activities | |||||
Cash from (used for) operating activities - continuing operations | 12,877 | (26,107) | |||
Cash from (used for) operating activities - discontinued operations | (1,634) | (501) | |||
Cash from (used for) operating activities | 11,243 | (26,608) | |||
Cash flows – investing activities | |||||
Cash from (used for) investing activities – continuing operations | (415) | (1,723) | |||
Cash from (used for) investing activities – discontinued operations | 0 | 0 | |||
Cash from (used for) investing activities | (415) | (1,723) | |||
Cash flows – financing activities | |||||
Cash from (used for) financing activities – continuing operations | (12,011) | 26,340 | |||
Cash from (used for) financing activities – discontinued operations | 0 | 0 | |||
Cash from (used for) financing activities | (12,011) | 26,340 | |||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | |||
Increase (decrease) in cash, cash equivalents and restricted cash | (1,183) | (1,991) | |||
Cash, cash equivalents and restricted cash at beginning of year | 3,472 | 2,729 | 2,729 | ||
Cash, cash equivalents and restricted cash at September 30 | 2,289 | 738 | 3,472 | ||
Less cash, cash equivalents and restricted cash of discontinued operations at September 30 | 0 | 0 | |||
Cash, cash equivalents and restricted cash of continuing operations at September 30 | 2,289 | 738 | 3,472 | ||
Reportable Legal Entities | Subsidiary Issuer | |||||
Cash flows – operating activities | |||||
Cash from (used for) operating activities - continuing operations | (118) | 39 | |||
Cash from (used for) operating activities - discontinued operations | 0 | 0 | |||
Cash from (used for) operating activities | (118) | 39 | |||
Cash flows – investing activities | |||||
Cash from (used for) investing activities – continuing operations | 189 | (39) | |||
Cash from (used for) investing activities – discontinued operations | 0 | 0 | |||
Cash from (used for) investing activities | 189 | (39) | |||
Cash flows – financing activities | |||||
Cash from (used for) financing activities – continuing operations | (70) | 0 | |||
Cash from (used for) financing activities – discontinued operations | 0 | 0 | |||
Cash from (used for) financing activities | (70) | 0 | |||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | |||
Increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | |||
Cash, cash equivalents and restricted cash at beginning of year | 0 | 0 | 0 | ||
Cash, cash equivalents and restricted cash at September 30 | 0 | 0 | 0 | ||
Less cash, cash equivalents and restricted cash of discontinued operations at September 30 | 0 | 0 | |||
Cash, cash equivalents and restricted cash of continuing operations at September 30 | 0 | 0 | 0 | ||
Reportable Legal Entities | Subsidiary Guarantor | |||||
Cash flows – operating activities | |||||
Cash from (used for) operating activities - continuing operations | (381) | (81) | |||
Cash from (used for) operating activities - discontinued operations | 0 | 0 | |||
Cash from (used for) operating activities | (381) | (81) | |||
Cash flows – investing activities | |||||
Cash from (used for) investing activities – continuing operations | (1,052) | 348 | |||
Cash from (used for) investing activities – discontinued operations | 0 | 0 | |||
Cash from (used for) investing activities | (1,052) | 348 | |||
Cash flows – financing activities | |||||
Cash from (used for) financing activities – continuing operations | 1,445 | (265) | |||
Cash from (used for) financing activities – discontinued operations | 0 | 0 | |||
Cash from (used for) financing activities | 1,445 | (265) | |||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | |||
Increase (decrease) in cash, cash equivalents and restricted cash | 12 | 4 | |||
Cash, cash equivalents and restricted cash at beginning of year | 3 | 41 | 41 | ||
Cash, cash equivalents and restricted cash at September 30 | 15 | 45 | 3 | ||
Less cash, cash equivalents and restricted cash of discontinued operations at September 30 | 0 | 0 | |||
Cash, cash equivalents and restricted cash of continuing operations at September 30 | 15 | 45 | 3 | ||
Reportable Legal Entities | Non- Guarantor Subsidiaries | |||||
Cash flows – operating activities | |||||
Cash from (used for) operating activities - continuing operations | 43,530 | 184,255 | |||
Cash from (used for) operating activities - discontinued operations | 1,533 | 8 | |||
Cash from (used for) operating activities | 45,063 | 184,264 | |||
Cash flows – investing activities | |||||
Cash from (used for) investing activities – continuing operations | (33,458) | (297,453) | |||
Cash from (used for) investing activities – discontinued operations | (224) | (2,515) | |||
Cash from (used for) investing activities | (33,681) | (299,968) | |||
Cash flows – financing activities | |||||
Cash from (used for) financing activities – continuing operations | (27,456) | 104,015 | |||
Cash from (used for) financing activities – discontinued operations | 0 | 1,905 | |||
Cash from (used for) financing activities | (27,456) | 105,920 | |||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | (440) | 1,253 | |||
Increase (decrease) in cash, cash equivalents and restricted cash | (16,513) | (8,531) | |||
Cash, cash equivalents and restricted cash at beginning of year | 41,993 | 49,204 | 49,204 | ||
Cash, cash equivalents and restricted cash at September 30 | 25,479 | 40,673 | 41,993 | ||
Less cash, cash equivalents and restricted cash of discontinued operations at September 30 | 432 | 501 | |||
Cash, cash equivalents and restricted cash of continuing operations at September 30 | 25,048 | 40,172 | 41,236 | ||
Consolidating Adjustments | |||||
Cash flows – operating activities | |||||
Cash from (used for) operating activities - continuing operations | (56,241) | (154,725) | |||
Cash from (used for) operating activities - discontinued operations | (1) | 3 | |||
Cash from (used for) operating activities | (56,242) | (154,722) | |||
Cash flows – investing activities | |||||
Cash from (used for) investing activities – continuing operations | 42,800 | 304,126 | |||
Cash from (used for) investing activities – discontinued operations | 0 | 0 | |||
Cash from (used for) investing activities | 42,800 | 304,126 | |||
Cash flows – financing activities | |||||
Cash from (used for) financing activities – continuing operations | 13,765 | (148,319) | |||
Cash from (used for) financing activities – discontinued operations | 0 | 0 | |||
Cash from (used for) financing activities | 13,765 | (148,319) | |||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | |||
Increase (decrease) in cash, cash equivalents and restricted cash | 324 | 1,084 | |||
Cash, cash equivalents and restricted cash at beginning of year | (743) | (1,590) | (1,590) | ||
Cash, cash equivalents and restricted cash at September 30 | (420) | (506) | (743) | ||
Less cash, cash equivalents and restricted cash of discontinued operations at September 30 | 0 | 0 | |||
Cash, cash equivalents and restricted cash of continuing operations at September 30 | $ (420) | $ (506) | $ (743) | ||
[1] | Includes restricted cash of $454 million and $668 million at September 30, 2018 and December 31, 2017, respectively. |
SEGMENT OPERATIONS (Details)
SEGMENT OPERATIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 29,573 | $ 30,662 | $ 88,337 | $ 86,640 |
Revenues, V% | (4.00%) | 2.00% | ||
Corporate items and eliminations | $ (22,736) | 746 | $ (20,992) | 1,820 |
Goodwill impairment | (21,973) | (947) | (21,973) | (947) |
Interest and other financial charges | (1,227) | (1,232) | (3,807) | (3,545) |
Non-operating benefit costs | (807) | (611) | (2,188) | (1,824) |
Benefit (provision) for income taxes | (162) | 551 | (677) | 693 |
Earnings (loss) from continuing operations attributable to GE common shareowners | (22,847) | 1,429 | (21,742) | 2,579 |
Earnings (loss) from discontinued operations, net of taxes | 39 | (106) | (1,634) | (490) |
Less net earnings attributable to noncontrolling interests, discontinued operations | 0 | (1) | 0 | 6 |
Earnings (loss) from discontinued operations, net of tax and noncontrolling interest | 39 | (105) | (1,634) | (497) |
Net earnings (loss) attributable to GE common shareowners | (22,808) | 1,324 | (23,376) | 2,082 |
Oil & Gas | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit excluding restructuring and other charges | 247 | 210 | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 30,258 | 31,569 | $ 90,912 | 89,491 |
Revenues, V% | (4.00%) | 2.00% | ||
Segment profit (loss) | $ 2,344 | 2,985 | $ 7,753 | 9,246 |
Segment profit (loss), V% | (21.00%) | (16.00%) | ||
Operating Segments | Total industrial segment revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 27,785 | 29,171 | $ 83,837 | 81,967 |
Revenues, V% | (5.00%) | 2.00% | ||
Segment profit (loss) | $ 2,325 | 2,961 | $ 8,157 | 9,441 |
Segment profit (loss), V% | (21.00%) | (14.00%) | ||
Operating Segments | Power | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 5,739 | 8,527 | $ 20,540 | 25,868 |
Revenues, V% | (33.00%) | (21.00%) | ||
Segment profit (loss) | $ (631) | 464 | $ 64 | 1,896 |
Segment profit (loss), V% | (97.00%) | |||
Goodwill impairment | $ (21,147) | |||
Operating Segments | Renewable Energy | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,873 | 2,507 | $ 6,172 | 6,587 |
Revenues, V% | 15.00% | (6.00%) | ||
Segment profit (loss) | $ 60 | 217 | $ 220 | 445 |
Segment profit (loss), V% | (72.00%) | (51.00%) | ||
Goodwill impairment | $ 0 | |||
Operating Segments | Aviation | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 7,480 | 6,696 | $ 22,111 | 20,003 |
Revenues, V% | 12.00% | 11.00% | ||
Segment profit (loss) | $ 1,665 | 1,335 | $ 4,743 | 3,982 |
Segment profit (loss), V% | 25.00% | 19.00% | ||
Goodwill impairment | $ 0 | |||
Operating Segments | Oil & Gas | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 5,670 | 5,311 | $ 16,609 | 11,394 |
Revenues, V% | 7.00% | 46.00% | ||
Segment profit (loss) | $ 180 | (57) | $ 110 | 322 |
Segment profit (loss), V% | (66.00%) | |||
Goodwill impairment | $ 0 | |||
Operating Segments | Healthcare | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 4,707 | 4,710 | $ 14,387 | 13,703 |
Revenues, V% | 0.00% | 5.00% | ||
Segment profit (loss) | $ 861 | 847 | $ 2,522 | 2,335 |
Segment profit (loss), V% | 2.00% | 8.00% | ||
Goodwill impairment | $ 0 | |||
Operating Segments | Transportation | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 932 | 949 | $ 2,746 | 3,006 |
Revenues, V% | (2.00%) | (9.00%) | ||
Segment profit (loss) | $ 162 | 141 | $ 448 | 420 |
Segment profit (loss), V% | 15.00% | 7.00% | ||
Goodwill impairment | $ 0 | |||
Operating Segments | Lighting | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 385 | 472 | $ 1,272 | 1,407 |
Revenues, V% | (18.00%) | (10.00%) | ||
Segment profit (loss) | $ 26 | 14 | $ 52 | 41 |
Segment profit (loss), V% | 86.00% | 27.00% | ||
Operating Segments | Capital | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,473 | 2,397 | $ 7,075 | 7,525 |
Revenues, V% | 3.00% | (6.00%) | ||
Segment profit (loss) | $ 19 | 24 | $ (403) | (195) |
Segment profit (loss), V% | (21.00%) | |||
Goodwill impairment | 0 | |||
Corporate Items and Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (685) | (907) | $ (2,575) | (2,851) |
Revenues, V% | 24.00% | 10.00% | ||
Segment profit (loss), V% | (20.00%) | |||
Corporate items and eliminations | $ (1,546) | 439 | $ (2,507) | (2,083) |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill impairment | (21,973) | (947) | (21,973) | (947) |
Interest and other financial charges | $ (662) | (718) | $ (1,995) | (1,918) |
GE interest and other financial charges, V% | 8.00% | (4.00%) | ||
Non-operating benefit costs | $ (804) | (610) | $ (2,178) | (1,811) |
GE non-operating benefit costs, V% | (32.00%) | (20.00%) | ||
Benefit (provision) for income taxes | $ (205) | $ 281 | $ (842) | $ 93 |