Cover Page
Cover Page shares in Thousands | 9 Months Ended |
Sep. 30, 2019shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2019 |
Document Transition Report | false |
Entity File Number | 001-00035 |
Entity Registrant Name | GENERAL ELECTRIC CO |
Entity Central Index Key | 0000040545 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | NY |
Entity Tax Identification Number | 14-0689340 |
Entity Address, Address Line One | 41 Farnsworth Street, |
Entity Address, City or Town | Boston |
Entity Address, State or Province | MA |
Entity Address, Postal Zip Code | 02210 |
City Area Code | 617 |
Local Phone Number | 443-3000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 8,733,549 |
Common Stock | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common stock, par value $0.06 per share |
Trading Symbol | GE |
Security Exchange Name | NYSE |
Floating Rate Notes Due 2020 | |
Entity Information [Line Items] | |
Title of 12(b) Security | Floating Rate Notes due 2020 |
Trading Symbol | GE 20E |
Security Exchange Name | NYSE |
0.375% Notes Due 2022 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.375% Notes due 2022 |
Trading Symbol | GE 22A |
Security Exchange Name | NYSE |
1.250% Notes Due 2023 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.250% Notes due 2023 |
Trading Symbol | GE 23E |
Security Exchange Name | NYSE |
0.875% Notes Due 2025 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.875% Notes due 2025 |
Trading Symbol | GE 25 |
Security Exchange Name | NYSE |
1.875% Notes Due 2027 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.875% Notes due 2027 |
Trading Symbol | GE 27E |
Security Exchange Name | NYSE |
1.500% Notes Due 2029 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.500% Notes due 2029 |
Trading Symbol | GE 29 |
Security Exchange Name | NYSE |
7.5% Guaranteed Subordinated Notes Due 2035 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 7 1/2% Guaranteed Subordinated Notes due 2035 |
Trading Symbol | GE /35 |
Security Exchange Name | NYSE |
2.125% Notes Due 2037 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 2.125% Notes due 2037 |
Trading Symbol | GE 37 |
Security Exchange Name | NYSE |
STATEMENT OF EARNINGS (LOSS) (U
STATEMENT OF EARNINGS (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Revenues | |||||
Revenues | $ 23,360 | $ 23,392 | $ 68,976 | $ 70,513 | |
Costs and expenses | |||||
Cost of sales | 17,328 | 17,847 | 50,949 | 52,244 | |
Selling, general and administrative expenses | 3,293 | 4,100 | 10,120 | 11,013 | |
Interest and other financial charges | 1,279 | 1,155 | 3,272 | 3,585 | |
Insurance losses and annuity benefits | 1,463 | 710 | 2,712 | 2,009 | |
Goodwill impairments | 740 | 21,973 | 1,484 | 21,973 | |
Non-operating benefit costs | 565 | 763 | 1,694 | 2,141 | |
Other costs and expenses | 99 | 85 | 337 | 253 | |
Total costs and expenses | 24,767 | 46,633 | 70,568 | 93,219 | |
Other income | 158 | 279 | 1,170 | 1,388 | |
GE Capital earnings (loss) from continuing operations | 0 | 0 | 0 | 0 | |
Earnings (loss) from continuing operations before income taxes | (1,249) | (22,962) | (422) | (21,318) | |
Benefit (provision) for income taxes | (41) | (52) | 1 | (460) | |
Earnings (loss) from continuing operations | (1,290) | (23,014) | (421) | (21,777) | |
Earnings (loss) from discontinued operations, net of taxes | (8,093) | 155 | (5,212) | (1,526) | |
Net earnings (loss) | (9,383) | (22,859) | (5,634) | (23,304) | |
Less net earnings (loss) attributable to noncontrolling interests | 40 | (90) | 73 | (188) | |
Net earnings (loss) attributable to the Company | (9,423) | (22,769) | (5,707) | (23,116) | |
Preferred stock dividends | (42) | (39) | (270) | (260) | |
Net earnings (loss) attributable to GE common shareowners | (9,465) | (22,808) | (5,977) | (23,376) | |
Amounts attributable to GE common shareowners | |||||
Earnings (loss) from continuing operations | (1,290) | (23,014) | (421) | (21,777) | |
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | (7) | (97) | 16 | (90) | |
Earnings (loss) from continuing operations attributable to the Company | (1,283) | (22,917) | (437) | (21,687) | |
Preferred stock dividends | (42) | (39) | (270) | (260) | |
Earnings (loss) from continuing operations attributable to GE common shareowners | (1,325) | (22,956) | (707) | (21,947) | |
Earnings (loss) from discontinued operations, net of taxes | (8,093) | 155 | (5,212) | (1,526) | |
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | 46 | 7 | 58 | (97) | |
Net earnings (loss) attributable to GE common shareowners | $ (9,465) | $ (22,808) | $ (5,977) | $ (23,376) | |
Earnings (loss) per share from continuing operations (Note 16) | |||||
Diluted earnings (loss) per share (in dollars per share) | $ (0.15) | $ (2.64) | $ (0.08) | $ (2.53) | |
Basic earnings (loss) per share (in dollars per share) | (0.15) | (2.64) | (0.08) | (2.53) | |
Net earnings (loss) per share (Note 16) | |||||
Diluted earnings (loss) per share (in dollars per share) | (1.08) | (2.62) | (0.69) | (2.69) | |
Basic earnings (loss) per share (in dollars per share) | (1.08) | (2.62) | (0.69) | (2.69) | |
Dividends declared per common share (in dollars per share) | $ 0.01 | $ 0.12 | $ 0.03 | $ 0.36 | |
Goods | |||||
Revenues | |||||
Sales | $ 14,869 | $ 14,524 | $ 42,220 | $ 42,886 | |
Costs and expenses | |||||
Cost of sales | 12,503 | 12,804 | 35,123 | 35,780 | |
Services | |||||
Revenues | |||||
Sales | 6,635 | 6,758 | 20,912 | 21,717 | |
Costs and expenses | |||||
Cost of sales | 4,825 | 5,043 | 15,825 | 16,464 | |
GE Capital revenues from services | |||||
Revenues | |||||
Revenues | 1,856 | 2,110 | 5,845 | 5,909 | |
Financial Services (GE Capital) | |||||
Revenues | |||||
Revenues | 2,097 | 2,473 | 6,645 | 7,075 | |
Costs and expenses | |||||
Selling, general and administrative expenses | 199 | 332 | 677 | 987 | |
Interest and other financial charges | 590 | 704 | 1,913 | 2,296 | |
Insurance losses and annuity benefits | 1,469 | 732 | 2,771 | 2,071 | |
Goodwill impairments | 0 | 0 | 0 | 0 | |
Non-operating benefit costs | 3 | 2 | 10 | 9 | |
Other costs and expenses | 103 | 115 | 380 | 328 | |
Total costs and expenses | 2,890 | 2,416 | 7,303 | 7,342 | |
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 | (793) | 57 | (658) | (268) | |
Benefit (provision) for income taxes | 188 | 43 | 327 | 165 | |
Earnings (loss) from continuing operations | (604) | 99 | (331) | (103) | |
Earnings (loss) from discontinued operations, net of taxes | (18) | 40 | 255 | (1,579) | |
Net earnings (loss) | (623) | 139 | (76) | (1,682) | |
Less net earnings (loss) attributable to noncontrolling interests | (2) | 42 | (2) | 40 | |
Net earnings (loss) attributable to the Company | (621) | 98 | (74) | (1,722) | |
Preferred stock dividends | (42) | (39) | (270) | (260) | |
Net earnings (loss) attributable to GE common shareowners | (663) | 59 | (344) | (1,982) | |
Amounts attributable to GE common shareowners | |||||
Earnings (loss) from continuing operations | (604) | 99 | (331) | (103) | |
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | (2) | 42 | (2) | 40 | |
Earnings (loss) from continuing operations attributable to the Company | (603) | 58 | (329) | (143) | |
Preferred stock dividends | (42) | (39) | (270) | (260) | |
Earnings (loss) from continuing operations attributable to GE common shareowners | (645) | 19 | (599) | (403) | |
Earnings (loss) from discontinued operations, net of taxes | (18) | 40 | 255 | (1,579) | |
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | 0 | 0 | 0 | 0 | |
Net earnings (loss) attributable to GE common shareowners | (663) | 59 | (344) | (1,982) | |
Financial Services (GE Capital) | Goods | |||||
Revenues | |||||
Sales | 22 | 37 | 56 | 100 | |
Costs and expenses | |||||
Cost of sales | 17 | 28 | 44 | 78 | |
Financial Services (GE Capital) | Services | |||||
Revenues | |||||
Sales | 0 | 0 | 0 | 0 | |
Costs and expenses | |||||
Cost of sales | 510 | 502 | 1,508 | 1,573 | |
Financial Services (GE Capital) | GE Capital revenues from services | |||||
Revenues | |||||
Revenues | 2,075 | 2,436 | 6,589 | 6,975 | |
GE | |||||
Revenues | |||||
Revenues | [1] | 21,519 | 21,273 | 63,259 | 64,601 |
Costs and expenses | |||||
Selling, general and administrative expenses | [1] | 3,172 | 3,905 | 9,734 | 10,457 |
Interest and other financial charges | [1] | 791 | 590 | 1,693 | 1,773 |
Insurance losses and annuity benefits | [1] | 0 | 0 | 0 | 0 |
Goodwill impairments | [1] | 740 | 21,973 | 1,484 | 21,973 |
Non-operating benefit costs | [1] | 562 | 760 | 1,684 | 2,132 |
Other costs and expenses | [1] | 4 | (13) | 0 | (33) |
Total costs and expenses | [1] | 22,128 | 44,566 | 64,201 | 87,001 |
Other income | [1] | 153 | 274 | 1,177 | 1,350 |
GE Capital earnings (loss) from continuing operations | [1] | (645) | 19 | (599) | (403) |
Earnings (loss) from continuing operations before income taxes | [1] | (1,101) | (23,000) | (363) | (21,454) |
Benefit (provision) for income taxes | [1] | (229) | (95) | (327) | (624) |
Earnings (loss) from continuing operations | [1] | (1,330) | (23,095) | (690) | (22,078) |
Earnings (loss) from discontinued operations, net of taxes | [1] | (8,093) | 155 | (5,212) | (1,526) |
Net earnings (loss) | [1] | (9,424) | (22,940) | (5,902) | (23,604) |
Less net earnings (loss) attributable to noncontrolling interests | [1] | 41 | (132) | 75 | (228) |
Net earnings (loss) attributable to the Company | [1] | (9,465) | (22,808) | (5,977) | (23,376) |
Preferred stock dividends | [1] | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to GE common shareowners | [1] | (9,465) | (22,808) | (5,977) | (23,376) |
Amounts attributable to GE common shareowners | |||||
Earnings (loss) from continuing operations | [1] | (1,330) | (23,095) | (690) | (22,078) |
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | [1] | (5) | (139) | 17 | (130) |
Earnings (loss) from continuing operations attributable to the Company | [1] | (1,325) | (22,956) | (707) | (21,947) |
Preferred stock dividends | [1] | 0 | 0 | 0 | 0 |
Earnings (loss) from continuing operations attributable to GE common shareowners | [1] | (1,325) | (22,956) | (707) | (21,947) |
Earnings (loss) from discontinued operations, net of taxes | [1] | (8,093) | 155 | (5,212) | (1,526) |
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | [1] | 46 | 7 | 58 | (97) |
Net earnings (loss) attributable to GE common shareowners | [1] | (9,465) | (22,808) | (5,977) | (23,376) |
GE | Goods | |||||
Revenues | |||||
Sales | [1] | 14,879 | 14,501 | 42,312 | 42,815 |
Costs and expenses | |||||
Cost of sales | [1] | 12,519 | 12,789 | 35,233 | 35,723 |
GE | Services | |||||
Revenues | |||||
Sales | [1] | 6,640 | 6,772 | 20,948 | 21,786 |
Costs and expenses | |||||
Cost of sales | [1] | 4,341 | 4,560 | 14,372 | 14,975 |
GE | GE Capital revenues from services | |||||
Revenues | |||||
Revenues | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
[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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ (9,383) | $ (22,859) | $ (5,634) | $ (23,304) |
Less net earnings (loss) attributable to noncontrolling interests | 40 | (90) | 73 | (188) |
Net earnings (loss) attributable to the Company | (9,423) | (22,769) | (5,707) | (23,116) |
Other comprehensive income (loss) | ||||
Investment securities | 18 | (57) | 116 | 67 |
Currency translation adjustments | 762 | (633) | 1,044 | (1,471) |
Cash flow hedges | (2) | (9) | 10 | (35) |
Benefit plans | 655 | 862 | 1,838 | 2,521 |
Other comprehensive income (loss) | 1,433 | 164 | 3,010 | 1,082 |
Less: other comprehensive income (loss) attributable to noncontrolling interests | (58) | (39) | (43) | (93) |
Other comprehensive income (loss) attributable to the Company | 1,491 | 203 | 3,053 | 1,174 |
Comprehensive income (loss) | (7,950) | (22,695) | (2,624) | (22,222) |
Less: comprehensive income (loss) attributable to noncontrolling interests | (19) | (129) | 30 | (281) |
Comprehensive income (loss) attributable to the Company | $ (7,931) | $ (22,566) | $ (2,654) | $ (21,941) |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS' EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Accumulated other comprehensive income (loss) | Investment securities | Currency translation adjustments | Cash flow hedges | Benefit plans | Other capital | Retained earnings | Common stock held in treasury | |
Beginning balance at Dec. 31, 2017 | $ (14,404) | $ 37,384 | $ 117,245 | $ (84,902) | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Other comprehensive income (loss) | $ 1,082 | $ 67 | $ (1,379) | $ (35) | $ 2,521 | |||||
Gains (losses) on treasury stock dispositions | (518) | |||||||||
Stock-based compensation | 315 | |||||||||
Other changes | 131 | |||||||||
Net earnings (loss) attributable to the Company | (23,116) | (23,116) | ||||||||
Dividends and other transactions with shareowners | (3,762) | |||||||||
Changes in accounting (Note 1) | 501 | |||||||||
Purchases | (198) | |||||||||
Dispositions | 897 | |||||||||
Ending balance at Sep. 30, 2018 | 47,837 | [1] | (13,229) | (36) | (6,040) | 27 | (7,181) | 37,311 | 90,867 | (84,202) |
Beginning balance at Jun. 30, 2018 | (13,432) | 37,352 | 114,913 | (84,471) | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Other comprehensive income (loss) | 164 | (56) | (595) | (8) | 863 | |||||
Gains (losses) on treasury stock dispositions | (210) | |||||||||
Stock-based compensation | 107 | |||||||||
Other changes | 62 | |||||||||
Net earnings (loss) attributable to the Company | (22,769) | (22,769) | ||||||||
Dividends and other transactions with shareowners | (1,276) | |||||||||
Purchases | (55) | |||||||||
Dispositions | 324 | |||||||||
Ending balance at Sep. 30, 2018 | 47,837 | [1] | (13,229) | (36) | (6,040) | 27 | (7,181) | 37,311 | 90,867 | (84,202) |
Preferred stock issued | 6 | |||||||||
Common stock issued | 702 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
GE shareowners' equity balance | 31,454 | |||||||||
Noncontrolling interests balance (Note 15) | 16,383 | |||||||||
Preferred stock issued | 6 | |||||||||
Common stock issued | 702 | |||||||||
GE shareowners' equity balance | 30,981 | |||||||||
Noncontrolling interests balance (Note 15) | 20,500 | |||||||||
Beginning balance at Dec. 31, 2018 | 51,481 | (14,414) | 35,504 | 93,109 | (83,925) | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Other comprehensive income (loss) | 3,010 | 116 | 1,084 | 11 | 1,842 | |||||
Gains (losses) on treasury stock dispositions | (817) | |||||||||
Stock-based compensation | 382 | |||||||||
Other changes | (753) | |||||||||
Net earnings (loss) attributable to the Company | (5,707) | (5,707) | ||||||||
Dividends and other transactions with shareowners | (557) | |||||||||
Changes in accounting (Note 1) | 368 | |||||||||
Purchases | (53) | |||||||||
Dispositions | 1,038 | |||||||||
Ending balance at Sep. 30, 2019 | 29,153 | [1] | (11,361) | 77 | (5,050) | 24 | (6,412) | 34,315 | 87,213 | (82,940) |
Beginning balance at Jun. 30, 2019 | (12,852) | 34,324 | 96,773 | (83,137) | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Other comprehensive income (loss) | 1,433 | 18 | 824 | (2) | 650 | |||||
Gains (losses) on treasury stock dispositions | (160) | |||||||||
Stock-based compensation | 118 | |||||||||
Other changes | 33 | |||||||||
Net earnings (loss) attributable to the Company | (9,423) | (9,423) | ||||||||
Dividends and other transactions with shareowners | (138) | |||||||||
Purchases | (8) | |||||||||
Dispositions | 204 | |||||||||
Ending balance at Sep. 30, 2019 | 29,153 | [1] | $ (11,361) | $ 77 | $ (5,050) | $ 24 | $ (6,412) | $ 34,315 | $ 87,213 | $ (82,940) |
Preferred stock issued | 6 | |||||||||
Common stock issued | 702 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
GE shareowners' equity balance | 27,935 | |||||||||
Noncontrolling interests balance (Note 15) | $ 1,219 | |||||||||
[1] | Total equity balance decreased by $(18,684) million in the last twelve months from September 30, 2018, primarily due to reduction of non-controlling interest balance of $(15,192) million attributable to Baker Hughes Class A shareholders at September 30, 2018 and after-tax loss of $(8,190) million in discontinued operations due to deconsolidation of Baker Hughes in the third quarter of 2019, partially offset by after-tax gain of $2,508 million |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS' EQUITY (UNAUDITED) (Parenthetical) $ in Millions | 12 Months Ended |
Sep. 30, 2019USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Decrease in total equity balance | $ (18,684) |
Reduction of non-controlling interest | $ (15,192) |
STATEMENT OF FINANCIAL POSITION
STATEMENT OF FINANCIAL POSITION - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | ||
Assets | ||||
Cash, cash equivalents and restricted cash | $ 27,810 | $ 31,124 | ||
Investment securities (Note 3) | 48,225 | 33,508 | ||
Current receivables (Note 4) | 16,018 | 14,645 | ||
Financing receivables – net (Note 5) | 3,321 | 7,699 | ||
Inventories (Note 6) | 15,203 | 13,803 | ||
Other GE Capital receivables | 7,387 | 7,143 | ||
Property, plant and equipment – net (Note 7) | 42,886 | 43,611 | ||
Operating lease assets (Note 7) | 2,970 | |||
Receivable from GE Capital | 0 | 0 | ||
Investment in GE Capital | 0 | 0 | ||
Goodwill (Note 8) | 26,666 | 33,974 | ||
Other intangible assets – net (Note 8) | 10,766 | 12,178 | ||
Contract and other deferred assets (Note 10) | 17,133 | 17,431 | ||
All other assets | 18,043 | 18,357 | ||
Deferred income taxes (Note 14) | 9,570 | 12,117 | ||
Assets of businesses held for sale (Note 2) | 12,832 | 1,629 | ||
Assets of discontinued operations (Note 2) | 4,178 | 63,853 | ||
Total assets | 263,009 | 311,072 | ||
Liabilities and equity | ||||
Short-term borrowings (Note 11) | 17,046 | 12,776 | ||
Short-term borrowings assumed by GE (Note 11) | 0 | 0 | ||
Accounts payable, principally trade accounts | 14,493 | 14,257 | ||
Progress collections and deferred income (Note 10) | 19,041 | 18,983 | ||
Other GE current liabilities | 13,675 | 14,453 | ||
Non-recourse borrowings of consolidated securitization entities (Note 11) | 1,498 | 1,875 | ||
Long-term borrowings (Note 11) | 74,701 | 88,949 | ||
Long-term borrowings assumed by GE (Note 11) | 0 | 0 | ||
Operating lease liabilities (Note 7) | 3,169 | |||
Insurance liabilities and annuity benefits (Note 12) | 40,084 | 35,562 | ||
Non-current compensation and benefits | 31,194 | 32,740 | ||
All other liabilities | 17,026 | 20,008 | ||
Liabilities of businesses held for sale (Note 2) | 1,543 | 708 | ||
Liabilities of discontinued operations (Note 2) | 387 | 19,281 | ||
Total liabilities | 233,856 | 259,591 | ||
Preferred stock (5,939,875 shares outstanding at both September 30, 2019 and December 31, 2018) | 6 | 6 | ||
Common stock (8,733,549,000 and 8,702,227,000 shares outstanding at September 30, 2019 and December 31, 2018, respectively) | 702 | 702 | ||
Accumulated other comprehensive income (loss) – net attributable to GE | (11,361) | (14,414) | ||
Other capital | 34,315 | 35,504 | ||
Retained earnings | 87,213 | 93,109 | ||
Less common stock held in treasury | (82,940) | (83,925) | ||
Total GE shareowners’ equity | 27,935 | 30,981 | ||
Noncontrolling interests | 1,219 | 20,500 | ||
Total equity (Note 15) | 29,153 | [1] | 51,481 | |
Total liabilities and equity | 263,009 | 311,072 | ||
Financial Services (GE Capital) | ||||
Assets | ||||
Cash, cash equivalents and restricted cash | 11,154 | 14,492 | ||
Investment securities (Note 3) | 38,741 | 33,393 | ||
Current receivables (Note 4) | 0 | 0 | ||
Financing receivables – net (Note 5) | 7,748 | 13,628 | ||
Inventories (Note 6) | 0 | 0 | ||
Other GE Capital receivables | 12,999 | 15,361 | ||
Property, plant and equipment – net (Note 7) | 29,378 | 29,510 | ||
Operating lease assets (Note 7) | 244 | 0 | ||
Receivable from GE Capital | 0 | 0 | ||
Investment in GE Capital | 0 | 0 | ||
Goodwill (Note 8) | 839 | 904 | ||
Other intangible assets – net (Note 8) | 206 | 236 | ||
Contract and other deferred assets (Note 10) | 0 | 0 | ||
All other assets | 9,418 | 9,869 | ||
Deferred income taxes (Note 14) | 2,415 | 1,936 | ||
Assets of businesses held for sale (Note 2) | 3,900 | 0 | ||
Assets of discontinued operations (Note 2) | 3,993 | 4,610 | ||
Total assets | 121,035 | 123,939 | ||
Liabilities and equity | ||||
Short-term borrowings (Note 11) | 5,123 | 4,999 | ||
Short-term borrowings assumed by GE (Note 11) | 2,990 | 2,684 | ||
Accounts payable, principally trade accounts | 1,397 | 1,612 | ||
Progress collections and deferred income (Note 10) | 0 | 0 | ||
Other GE current liabilities | 0 | 0 | ||
Non-recourse borrowings of consolidated securitization entities (Note 11) | 1,498 | 1,875 | ||
Long-term borrowings (Note 11) | 33,390 | 36,154 | ||
Long-term borrowings assumed by GE (Note 11) | 17,255 | 19,828 | ||
Operating lease liabilities (Note 7) | 239 | 0 | ||
Insurance liabilities and annuity benefits (Note 12) | 40,550 | 35,994 | ||
Non-current compensation and benefits | 532 | 856 | ||
All other liabilities | 4,748 | 6,724 | ||
Liabilities of businesses held for sale (Note 2) | 129 | 0 | ||
Liabilities of discontinued operations (Note 2) | 228 | 1,800 | ||
Total liabilities | 108,079 | 112,527 | ||
Preferred stock (5,939,875 shares outstanding at both September 30, 2019 and December 31, 2018) | 6 | 6 | ||
Common stock (8,733,549,000 and 8,702,227,000 shares outstanding at September 30, 2019 and December 31, 2018, respectively) | 0 | 0 | ||
Accumulated other comprehensive income (loss) – net attributable to GE | (781) | (783) | ||
Other capital | 14,500 | 12,883 | ||
Retained earnings | (906) | (694) | ||
Less common stock held in treasury | 0 | 0 | ||
Total GE shareowners’ equity | 12,819 | 11,412 | ||
Noncontrolling interests | 137 | 1 | ||
Total equity (Note 15) | 12,955 | 11,412 | ||
Total liabilities and equity | 121,035 | 123,939 | ||
GE | ||||
Assets | ||||
Cash, cash equivalents and restricted cash | [2] | 16,656 | 16,632 | |
Investment securities (Note 3) | [2] | 9,485 | 187 | |
Current receivables (Note 4) | [2] | 12,657 | 10,262 | |
Financing receivables – net (Note 5) | [2] | 0 | 0 | |
Inventories (Note 6) | [2] | 15,203 | 13,803 | |
Other GE Capital receivables | [2] | 0 | 0 | |
Property, plant and equipment – net (Note 7) | [2] | 14,132 | 14,828 | |
Operating lease assets (Note 7) | [2] | 3,187 | 0 | |
Receivable from GE Capital | [2] | 20,244 | 22,513 | |
Investment in GE Capital | [2] | 12,819 | 11,412 | |
Goodwill (Note 8) | [2] | 25,827 | 33,070 | |
Other intangible assets – net (Note 8) | [2] | 10,560 | 11,942 | |
Contract and other deferred assets (Note 10) | [2] | 17,166 | 17,431 | |
All other assets | [2] | 9,061 | 8,578 | |
Deferred income taxes (Note 14) | [2] | 7,156 | 10,176 | |
Assets of businesses held for sale (Note 2) | [2] | 8,755 | 1,524 | |
Assets of discontinued operations (Note 2) | [2] | 186 | 59,169 | |
Total assets | [2] | 183,094 | 231,526 | |
Liabilities and equity | ||||
Short-term borrowings (Note 11) | [2] | 5,465 | 5,147 | |
Short-term borrowings assumed by GE (Note 11) | [2] | 7,310 | 4,207 | |
Accounts payable, principally trade accounts | [2] | 17,858 | 19,148 | |
Progress collections and deferred income (Note 10) | [2] | 19,245 | 19,239 | |
Other GE current liabilities | [2] | 13,886 | 14,453 | |
Non-recourse borrowings of consolidated securitization entities (Note 11) | [2] | 0 | 0 | |
Long-term borrowings (Note 11) | [2] | 15,107 | 20,804 | |
Long-term borrowings assumed by GE (Note 11) | [2] | 26,204 | 32,054 | |
Operating lease liabilities (Note 7) | [2] | 3,389 | 0 | |
Insurance liabilities and annuity benefits (Note 12) | [2] | 0 | 0 | |
Non-current compensation and benefits | [2] | 30,654 | 31,875 | |
All other liabilities | [2] | 13,371 | 14,889 | |
Liabilities of businesses held for sale (Note 2) | [2] | 1,430 | 748 | |
Liabilities of discontinued operations (Note 2) | [2] | 159 | 17,481 | |
Total liabilities | [2] | 154,078 | 180,045 | |
Preferred stock (5,939,875 shares outstanding at both September 30, 2019 and December 31, 2018) | [2] | 6 | 6 | |
Common stock (8,733,549,000 and 8,702,227,000 shares outstanding at September 30, 2019 and December 31, 2018, respectively) | [2] | 702 | 702 | |
Accumulated other comprehensive income (loss) – net attributable to GE | [2] | (11,361) | (14,414) | |
Other capital | [2] | 34,315 | 35,504 | |
Retained earnings | [2] | 87,213 | 93,109 | |
Less common stock held in treasury | [2] | (82,940) | (83,925) | |
Total GE shareowners’ equity | [2] | 27,935 | 30,981 | |
Noncontrolling interests | [2] | 1,082 | 20,499 | |
Total equity (Note 15) | [2] | 29,016 | 51,480 | |
Total liabilities and equity | [2] | $ 183,094 | $ 231,526 | |
[1] | Total equity balance decreased by $(18,684) million in the last twelve months from September 30, 2018, primarily due to reduction of non-controlling interest balance of $(15,192) million attributable to Baker Hughes Class A shareholders at September 30, 2018 and after-tax loss of $(8,190) million in discontinued operations due to deconsolidation of Baker Hughes in the third quarter of 2019, partially offset by after-tax gain of $2,508 million | |||
[2] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
STATEMENT OF FINANCIAL POSITI_2
STATEMENT OF FINANCIAL POSITION (Parenthetical) - shares | Sep. 30, 2019 | Dec. 31, 2018 |
Preferred stock, shares outstanding | 5,939,875 | 5,939,875 |
Common stock, shares outstanding | 8,727,072,000 | 8,702,227,000 |
GE Capital | ||
Preferred stock, shares outstanding | 5,939,875 | 5,939,875 |
Common stock, shares outstanding | 8,733,549,000 | 8,702,227,000 |
GE | ||
Preferred stock, shares outstanding | 5,939,875 | 5,939,875 |
Common stock, shares outstanding | 8,733,549,000 | 8,702,227,000 |
STATEMENT OF CASH FLOWS (UNAUDI
STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | ||
Cash flows – operating activities | ||||||
Net earnings (loss) | $ (9,383) | $ (22,859) | $ (5,634) | $ (23,304) | ||
(Earnings) loss from discontinued operations | 8,093 | (155) | 5,212 | 1,526 | ||
Adjustments to reconcile net earnings (loss) to cash provided from operating activities | ||||||
Depreciation and amortization of property, plant and equipment (Note 7) | 2,969 | 3,357 | ||||
Amortization of intangible assets (Note 8) | 496 | 831 | 1,220 | 1,740 | ||
Goodwill impairments (Note 8) | 740 | 21,973 | 1,484 | 21,973 | ||
(Earnings) loss from continuing operations retained by GE Capital | 0 | 0 | ||||
(Gains) losses on purchases and sales of business interests | (260) | (763) | ||||
Principal pension plans cost (Note 13) | 2,509 | 3,172 | ||||
Principal pension plans employer contributions | (202) | (6,186) | ||||
Other postretirement benefit plans (net) | (809) | (854) | ||||
Provision (benefit) for income taxes | 41 | 52 | (1) | 460 | ||
Cash recovered (paid) during the year for income taxes | (1,427) | (1,051) | ||||
Decrease (increase) in contract and other deferred assets | (321) | (750) | ||||
Decrease (increase) in GE current receivables | (1,857) | (993) | ||||
Decrease (increase) in inventories | (2,113) | (1,447) | ||||
Increase (decrease) in accounts payable | 1,259 | 775 | ||||
Increase (decrease) in GE progress collections | (216) | (1,081) | ||||
All other operating activities | 1,606 | (908) | ||||
Cash from (used for) operating activities – continuing operations | 3,423 | (4,334) | ||||
Cash from (used for) operating activities – discontinued operations | (1,390) | 745 | ||||
Cash from (used for) operating activities | 2,033 | (3,589) | ||||
Cash flows – investing activities | ||||||
Additions to property, plant and equipment | (4,175) | (4,265) | ||||
Dispositions of property, plant and equipment | 2,796 | 2,378 | ||||
Additions to internal-use software | (208) | (249) | ||||
Net decrease (increase) in financing receivables | 523 | 1,281 | ||||
Proceeds from sale of discontinued operations | 5,864 | 29 | ||||
Proceeds from principal business dispositions | 1,124 | 5,477 | ||||
Net cash from (payments for) principal businesses purchased | 0 | (1) | ||||
Capital contribution from GE to GE Capital | 0 | 0 | ||||
All other investing activities | 1,165 | 7,480 | ||||
Cash from (used for) investing activities – continuing operations | 7,087 | 12,129 | ||||
Cash from (used for) investing activities – discontinued operations | (2,037) | (493) | ||||
Cash from (used for) investing activities | 5,050 | 11,636 | ||||
Cash flows – financing activities | ||||||
Net increase (decrease) in borrowings (maturities of 90 days or less) | (185) | (1,901) | ||||
Newly issued debt (maturities longer than 90 days) | 1,449 | 2,349 | ||||
Repayments and other debt reductions (maturities longer than 90 days) | (13,476) | (17,725) | ||||
Capital contribution from GE to GE Capital | 0 | 0 | ||||
Net dispositions (purchases) of GE shares for treasury | 31 | (6) | ||||
Dividends paid to shareowners | (411) | (3,282) | ||||
All other financing activities | (1,128) | (1,659) | ||||
Cash from (used for) financing activities – continuing operations | (13,721) | (22,224) | ||||
Cash from (used for) financing activities – discontinued operations | (368) | (2,743) | ||||
Cash from (used for) financing activities | (14,089) | (24,967) | ||||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | (131) | (440) | ||||
Increase (decrease) in cash, cash equivalents and restricted cash | (7,136) | (17,361) | ||||
Cash, cash equivalents and restricted cash at beginning of year | 35,548 | 44,724 | $ 44,724 | |||
Cash, cash equivalents and restricted cash at September 30 | 28,412 | 27,364 | 28,412 | 27,364 | 35,548 | |
Less cash, cash equivalents and restricted cash of discontinued operations at September 30 | 602 | 5,310 | 602 | 5,310 | ||
Cash, cash equivalents and restricted cash of continuing operations at September 30 | 27,810 | 22,054 | 27,810 | 22,054 | 31,124 | |
Financial Services (GE Capital) | ||||||
Cash flows – operating activities | ||||||
Net earnings (loss) | (623) | 139 | (76) | (1,682) | ||
(Earnings) loss from discontinued operations | 18 | (40) | (255) | 1,579 | ||
Adjustments to reconcile net earnings (loss) to cash provided from operating activities | ||||||
Depreciation and amortization of property, plant and equipment (Note 7) | 1,513 | 1,593 | ||||
Amortization of intangible assets (Note 8) | 44 | 42 | ||||
Goodwill impairments (Note 8) | 0 | 0 | 0 | 0 | ||
(Earnings) loss from continuing operations retained by GE Capital | [1] | 0 | 0 | |||
(Gains) losses on purchases and sales of business interests | 0 | (288) | ||||
Principal pension plans cost (Note 13) | 0 | 0 | ||||
Principal pension plans employer contributions | 0 | 0 | ||||
Other postretirement benefit plans (net) | (11) | (19) | ||||
Provision (benefit) for income taxes | (188) | (43) | (327) | (165) | ||
Cash recovered (paid) during the year for income taxes | (81) | (95) | ||||
Decrease (increase) in contract and other deferred assets | 0 | 0 | ||||
Decrease (increase) in GE current receivables | 0 | 0 | ||||
Decrease (increase) in inventories | 0 | 0 | ||||
Increase (decrease) in accounts payable | (3) | (12) | ||||
Increase (decrease) in GE progress collections | 0 | 0 | ||||
All other operating activities | 431 | (456) | ||||
Cash from (used for) operating activities – continuing operations | 1,235 | 497 | ||||
Cash from (used for) operating activities – discontinued operations | (1,700) | (101) | ||||
Cash from (used for) operating activities | (465) | 395 | ||||
Cash flows – investing activities | ||||||
Additions to property, plant and equipment | (2,795) | (2,630) | ||||
Dispositions of property, plant and equipment | 2,544 | 2,196 | ||||
Additions to internal-use software | (5) | (16) | ||||
Net decrease (increase) in financing receivables | 2,399 | 6,656 | ||||
Proceeds from sale of discontinued operations | 0 | 29 | ||||
Proceeds from principal business dispositions | 380 | 2,011 | ||||
Net cash from (payments for) principal businesses purchased | 0 | 0 | ||||
Capital contribution from GE to GE Capital | 0 | 0 | ||||
All other investing activities | 211 | (1,739) | ||||
Cash from (used for) investing activities – continuing operations | 2,734 | 6,507 | ||||
Cash from (used for) investing activities – discontinued operations | 1,770 | (224) | ||||
Cash from (used for) investing activities | 4,504 | 6,283 | ||||
Cash flows – financing activities | ||||||
Net increase (decrease) in borrowings (maturities of 90 days or less) | (539) | (1,765) | ||||
Newly issued debt (maturities longer than 90 days) | 1,445 | 2,288 | ||||
Repayments and other debt reductions (maturities longer than 90 days) | (8,613) | (17,274) | ||||
Capital contribution from GE to GE Capital | 1,500 | 0 | ||||
Net dispositions (purchases) of GE shares for treasury | 0 | 0 | ||||
Dividends paid to shareowners | (266) | (185) | ||||
All other financing activities | (805) | (2,091) | ||||
Cash from (used for) financing activities – continuing operations | (7,279) | (19,027) | ||||
Cash from (used for) financing activities – discontinued operations | (1) | 0 | ||||
Cash from (used for) financing activities | (7,279) | (19,027) | ||||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | (28) | (51) | ||||
Increase (decrease) in cash, cash equivalents and restricted cash | (3,269) | (12,400) | ||||
Cash, cash equivalents and restricted cash at beginning of year | 15,020 | 25,902 | 25,902 | |||
Cash, cash equivalents and restricted cash at September 30 | 11,751 | 13,502 | 11,751 | 13,502 | 15,020 | |
Less cash, cash equivalents and restricted cash of discontinued operations at September 30 | 598 | 432 | 598 | 432 | ||
Cash, cash equivalents and restricted cash of continuing operations at September 30 | 11,154 | 13,071 | 11,154 | 13,071 | 14,492 | |
GE | ||||||
Cash flows – operating activities | ||||||
Net earnings (loss) | [2] | (9,424) | (22,940) | (5,902) | (23,604) | |
(Earnings) loss from discontinued operations | [2] | 8,093 | (155) | 5,212 | 1,526 | |
Adjustments to reconcile net earnings (loss) to cash provided from operating activities | ||||||
Depreciation and amortization of property, plant and equipment (Note 7) | [2] | 1,453 | 1,756 | |||
Amortization of intangible assets (Note 8) | [2] | 1,176 | 1,698 | |||
Goodwill impairments (Note 8) | [2] | 740 | 21,973 | 1,484 | 21,973 | |
(Earnings) loss from continuing operations retained by GE Capital | [1],[2] | 599 | 403 | |||
(Gains) losses on purchases and sales of business interests | [2] | (260) | (475) | |||
Principal pension plans cost (Note 13) | [2] | 2,509 | 3,172 | |||
Principal pension plans employer contributions | [2] | (202) | (6,186) | |||
Other postretirement benefit plans (net) | [2] | (798) | (835) | |||
Provision (benefit) for income taxes | [2] | 229 | 95 | 327 | 624 | |
Cash recovered (paid) during the year for income taxes | [2] | (1,346) | (956) | |||
Decrease (increase) in contract and other deferred assets | [2] | (321) | (750) | |||
Decrease (increase) in GE current receivables | [2] | (2,370) | (580) | |||
Decrease (increase) in inventories | [2] | (1,950) | (1,442) | |||
Increase (decrease) in accounts payable | [2] | 164 | 683 | |||
Increase (decrease) in GE progress collections | [2] | (254) | (930) | |||
All other operating activities | [2] | 554 | (537) | |||
Cash from (used for) operating activities – continuing operations | [2] | 77 | (4,458) | |||
Cash from (used for) operating activities – discontinued operations | [2] | (17) | 730 | |||
Cash from (used for) operating activities | [2] | 60 | (3,729) | |||
Cash flows – investing activities | ||||||
Additions to property, plant and equipment | [2] | (1,596) | (1,702) | |||
Dispositions of property, plant and equipment | [2] | 273 | 193 | |||
Additions to internal-use software | [2] | (203) | (233) | |||
Net decrease (increase) in financing receivables | [2] | 0 | 0 | |||
Proceeds from sale of discontinued operations | [2] | 5,864 | 0 | |||
Proceeds from principal business dispositions | [2] | 1,083 | 3,270 | |||
Net cash from (payments for) principal businesses purchased | [2] | (380) | (1) | |||
Capital contribution from GE to GE Capital | [2] | (1,500) | 0 | |||
All other investing activities | [2] | 3,404 | (824) | |||
Cash from (used for) investing activities – continuing operations | [2] | 6,946 | 702 | |||
Cash from (used for) investing activities – discontinued operations | [2] | (3,480) | (153) | |||
Cash from (used for) investing activities | [2] | 3,466 | 550 | |||
Cash flows – financing activities | ||||||
Net increase (decrease) in borrowings (maturities of 90 days or less) | [2] | (1,005) | (1,489) | |||
Newly issued debt (maturities longer than 90 days) | [2] | 5 | 6,555 | |||
Repayments and other debt reductions (maturities longer than 90 days) | [2] | (5,342) | (1,007) | |||
Capital contribution from GE to GE Capital | [2] | 0 | 0 | |||
Net dispositions (purchases) of GE shares for treasury | [2] | 31 | (6) | |||
Dividends paid to shareowners | [2] | (262) | (3,135) | |||
All other financing activities | [2] | (348) | 432 | |||
Cash from (used for) financing activities – continuing operations | [2] | (6,923) | 1,350 | |||
Cash from (used for) financing activities – discontinued operations | [2] | (368) | (2,743) | |||
Cash from (used for) financing activities | [2] | (7,290) | (1,393) | |||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | [2] | (103) | (388) | |||
Increase (decrease) in cash, cash equivalents and restricted cash | [2] | (3,867) | (4,961) | |||
Cash, cash equivalents and restricted cash at beginning of year | [2] | 20,528 | 18,822 | 18,822 | ||
Cash, cash equivalents and restricted cash at September 30 | [2] | 16,660 | 13,862 | 16,660 | 13,862 | 20,528 |
Less cash, cash equivalents and restricted cash of discontinued operations at September 30 | [2] | 4 | 4,878 | 4 | 4,878 | |
Cash, cash equivalents and restricted cash of continuing operations at September 30 | [2] | $ 16,656 | $ 8,983 | $ 16,656 | $ 8,983 | $ 16,632 |
[1] | Represents GE Capital earnings (loss) from continuing operations attributable to the Company. | |||||
[2] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. As used in these financial statements, “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 represents the adding together of all affiliates of GE Capital with the effects of transactions among such affiliates eliminated; and “Consolidated” represents the adding together of GE and GE Capital with the effects of transactions between the two eliminated. The consolidated financial statements and notes thereto are unaudited. These statements include all adjustments 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. These consolidated financial statements should 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, 2018 . 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. Our significant accounting policies are described in Note 1 to the consolidated financial statements of our aforementioned Annual Report. We include herein certain updates to those policies. Cash, cash equivalents and restricted cash. Debt securities and money market instruments with original maturities of three months or less are included in cash, cash equivalents and restricted cash unless designated as available-for-sale and classified as investment securities. The balance includes restricted cash of $633 million and $388 million at September 30, 2019 and December 31, 2018, respectively, primarily comprising collateral for receivables sold and funds restricted in connection with certain ongoing litigation matters. LEASE ACCOUNTING. We determine if an arrangement is a lease or a service contract at inception. Where an arrangement is a lease we determine if it is an operating lease or a finance lease. Subsequently, if the arrangement is modified we reevaluate our classification. Lessee. At lease commencement, we record a lease liability and corresponding right-of-use (ROU) asset. Lease liabilities represent the present value of our future lease payments over the expected lease term which includes options to extend or terminate the lease when it is reasonably certain those options will be exercised. We have elected to include lease and non-lease components in determining our lease liability for all leased assets except our vehicle leases. Non-lease components are generally services that the lessor performs for the Company associated with the leased asset. For those leases with payments based on an index, the lease liability is determined using the index at lease commencement. Lease payments based on increases in the index subsequent to lease commencement are recognized as variable lease expense as they occur. The present value of our lease liability is determined using our incremental collateralized borrowing rate at lease inception. ROU assets represent our right to control the use of the leased asset during the lease and are recognized in an amount equal to the lease liability for leases with an initial term greater than 12 months. Over the lease term we use the effective interest rate method to account for the lease liability as lease payments are made and the ROU asset is amortized to earnings in a manner that results in straight-line expense recognition. Lessor. Equipment leased to others under operating leases are included in "Property, plant and equipment" and leases classified as finance leases are included in "Financing receivables" on our consolidated Statement of Financial Position. Refer to Notes 5 and 7 for additional information. ACCOUNTING CHANGES. On January 1, 2019, we adopted ASU No. 2016-02, Leases . Upon adoption, we recorded a $315 million increase to retained earnings, primarily attributable to the release of deferred gains on sale-lease back transactions. Our ROU assets and lease liabilities for operating leases excluding discontinued operations at adoption were $ 3,272 million and $ 3,459 million, respectively. After the adoption date, cash collections of principal on financing leases, are classified as Cash from operating activities in our consolidated Statement of Cash Flows. Previously, such flows were classified as Cash from investing activities. On January 1, 2019, we adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The ASU requires certain changes to the presentation of hedge accounting in the financial statements and some new or modified disclosures. The ASU also simplifies the application of hedge accounting and expands the strategies that qualify for hedge accounting. Upon adoption, we recorded an increase to retained earnings and a decrease to borrowings of $52 million |
BUSINESSES HELD FOR SALE AND DI
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS | 9 Months Ended |
Sep. 30, 2019 | |
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 August 2019, we announced an agreement to sell PK AirFinance, an aviation lending business within our Capital segment, to Apollo Global Management, LLC (Apollo) and Athene Holding Ltd. (Athene). As of the third quarter of 2019, we had assets of $3,900 million and liabilities of $129 million for this business classified as held for sale. We expect to complete the sale in the fourth quarter of 2019. In February 2019, we announced an agreement to sell our BioPharma business within our Healthcare segment to Danaher Corporation for total consideration of approximately $ 21,400 million . As of the third quarter of 2019, we had assets of $8,332 million (including goodwill of $5,523 million ) and liabilities of $1,174 million for this business classified as held for sale. We expect to complete the sale, subject to regulatory approval, in the first quarter of 2020. In November 2017, the Company announced its intention to exit approximately $20 billion of assets. Since this announcement, GE has classified various businesses across our Power, Aviation, and Healthcare segments, and Corporate as held for sale. In 2019, we closed certain of these transactions within Corporate and our Power and Aviation segments for total net proceeds of $ 1,070 million, recognized a pre-tax gain of $ 218 million in the caption “Other income” in our consolidated Statement of Earnings (Loss) and liquidated $ 548 million of our previously recorded valuation allowance. These transactions are subject to customary working capital and other post-close adjustments. As of September 30, 2019, we have closed the sale of substantially all of these assets in accordance with the plan. ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE (In millions) September 30, 2019 December 31, 2018 Current receivables $ 400 $ 184 Inventories 707 529 Financing receivables held for sale 3,849 — Property, plant, and equipment – net and Operating leases 906 423 Goodwill and Other intangible assets - net 6,285 884 Valuation allowance (508 ) (1,013 ) Deferred tax asset 819 — Other assets 376 622 Assets of businesses held for sale $ 12,832 $ 1,629 Accounts payable & Progress collections and deferred income $ 798 $ 428 Non-current compensation and benefits 360 152 Other liabilities 384 128 Liabilities of businesses held for sale $ 1,543 $ 708 DISCONTINUED OPERATIONS . Discontinued operations include our Baker Hughes and Transportation segments and certain assets and liabilities from legacy financial services businesses. In September 2019, pursuant to our announced plan of an orderly separation of Baker Hughes over time, we sold a total of 144.1 million shares in Baker Hughes for $3,037 million in cash (net of expenses) which, reduced our ownership interest in Baker Hughes from 50.2% to 36.8% . As a result, we have deconsolidated our Baker Hughes segment and reclassified results to discontinued operations for all periods presented and recognized a loss of $8,667 million ( $8,190 million after-tax) in discontinued operations in the third quarter of 2019. The loss represents the sum of the realized loss on sale of the 144.1 million shares as well as the loss upon deconsolidation, which represents the difference between the carrying value and fair value of our remaining interest as of the transaction date. We elected to account for our remaining interest in Baker Hughes (comprising our 36.8% ownership interest and a promissory note receivable) at fair value. The initial fair value of this investment was $9,631 million based on the Baker Hughes opening share price of $23.53 as of the transaction date and the fair value of the promissory note receivable of $750 million . Our investment is recorded in the caption “Investment securities” in our consolidated Statement of Financial Position and related earnings or loss from subsequent changes in fair value will be recognized in the caption "Other income" in continuing operations in our consolidated Statement of Earnings (Loss). See Note 3 for further information. We have continuing involvement with Baker Hughes primarily through our remaining interest, ongoing purchases and sales of products and services, as well as the transition services that we provide to Baker Hughes. Since the date of the transaction, our sales and purchases of products and services with Baker Hughes and affiliates was not significant during the third quarter of 2019. They also participated in GE's supply chain finance program up to the date of separation with a current outstanding balance of $312 million . In addition, Baker Hughes has an outstanding promissory note to GE, which represents cash that Baker Hughes is holding on GE’s behalf due to its restricted nature. The restrictions arise as majority of the cash cannot be transferred or converted into a non-restricted market currency due to the lack of market liquidity, capital controls or exchange limitations by a Government entity. As these restrictions lapse, Baker Hughes is obligated to make principal repayments on the promissory note. Since the date of the transaction, we have collected net cash of $157 million from Baker Hughes related to these activities, including $151 million repayment on the promissory note. In February 2019, we completed the spin-off and subsequent merger of our Transportation business with Wabtec, a U.S. rail equipment manufacturer. In the transaction, GE shareholders received shares of Wabtec common stock representing an approximate 24.3% ownership interest in Wabtec common stock. GE received $2,827 million in cash (net of certain deal related costs) as well as shares of Wabtec common stock and Wabtec non-voting convertible preferred stock that, together, represent approximately 24.9% ownership interest in Wabtec. In addition, GE is entitled to additional cash consideration up to $470 million for tax benefits that Wabtec realizes from the transaction. We reclassified our Transportation segment to discontinued operations in the first quarter of 2019. As part of the transaction, we recorded a gain of $3,471 million ( $2,508 million after-tax) in discontinued operations and a net after-tax decrease of $852 million in additional paid in capital in connection with the spin-off of approximately 49.4% of Transportation to our shareholders. The fair value of our interest in Wabtec’s common and preferred shares was $3,513 million based on the opening share price of $73.45 at the date of the transaction and was recorded in the caption “Investment securities” in our consolidated Statement of Financial Position. Discontinued operations for our financial services businesses primarily relate to the GE Capital Exit Plan (our plan announced in 2015 to reduce the size of our financial services businesses) and were previously reported in the Capital segment. These 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. In January 2019, we announced an agreement in principle with the United States to settle the investigation by the U.S. Department of Justice (DOJ) regarding potential violations of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) by WMC and GE Capital, and in April 2019, the parties entered into a definitive settlement agreement. Under the agreement, which concludes this investigation, GE, without admitting liability or wrongdoing, paid the United States a civil penalty of $1,500 million . In June 2019, GE Capital recorded in the caption "Earnings (loss) from discontinued operations, net of taxes" in our consolidated Statement of Earnings (Loss), $332 million of tax benefits and $46 million of net interest benefits due to a decrease in our balance of unrecognized tax benefits. See Note 14 for further information. Results of operations, financial position and cash flows for these businesses are reported as discontinued operations for all periods pr esented. RESULTS OF DISCONTINUED OPERATIONS (In millions) Baker Hughes Transportation and Other GE Capital Total Three months ended September 30 2019 2018 2019 2018 2019 2018 2019 2018 Operations Sales of goods and services $ 4,478 $ 5,670 $ — $ 932 $ — $ — $ 4,478 $ 6,602 GE Capital revenues and other income (loss) — — — — 16 152 16 152 Cost of goods and services sold (3,686 ) (4,767 ) — (652 ) — — (3,686 ) (5,419 ) Other costs and expenses (618 ) (830 ) (16 ) (127 ) (53 ) (90 ) (686 ) (1,048 ) Earnings (loss) of discontinued operations before income taxes 175 73 (16 ) 152 (37 ) 61 121 287 Benefit (provision) for income taxes (50 ) (78 ) 6 (32 ) 29 (22 ) (14 ) (132 ) Earnings (loss) of discontinued operations, net of taxes(a) $ 125 $ (5 ) $ (9 ) $ 120 $ (8 ) $ 40 $ 107 $ 155 Disposal Gain (loss) on disposal before income taxes (8,667 ) — — — (10 ) — (8,677 ) — Benefit (provision) for income taxes 477 — — — — — 477 — Gain (loss) on disposal, net of taxes $ (8,190 ) $ — $ — $ — $ (10 ) $ — $ (8,201 ) $ — Earnings (loss) from discontinued operations, net of taxes $ (8,066 ) $ (5 ) $ (9 ) $ 120 $ (18 ) $ 40 $ (8,093 ) $ 155 (a) Earnings (loss) of discontinued operations attributable to the Company after income taxes was $61 million and $148 million for the three months ended September 30, 2019 and 2018 respectively. RESULTS OF DISCONTINUED OPERATIONS (In millions) Baker Hughes Transportation and Other GE Capital Total Nine months ended September 30 2019 2018 2019 2018 2019 2018 2019 2018 Operations Sales of goods and services $ 16,047 $ 16,609 $ 549 $ 2,746 $ — $ — $ 16,596 $ 19,355 GE Capital revenues and other income (loss) — — — — 7 (1,316 ) 7 (1,316 ) Cost of goods and services sold (13,317 ) (14,140 ) (478 ) (1,942 ) — — (13,795 ) (16,082 ) Other costs and expenses (2,386 ) (2,530 ) (22 ) (473 ) (142 ) (298 ) (2,550 ) (3,301 ) Earnings (loss) of discontinued operations before income taxes 345 (61 ) 49 331 (136 ) (1,614 ) $ 258 $ (1,343 ) Benefit (provision) for income taxes (165 ) (124 ) (13 ) (93 ) 356 32 178 (186 ) Earnings (loss) of discontinued operations, net of taxes(a) $ 179 $ (185 ) $ 36 $ 237 $ 220 $ (1,582 ) $ 436 $ (1,529 ) Disposal Gain (loss) on disposal before income taxes (8,667 ) — 3,471 — 36 4 $ (5,160 ) $ 4 Benefit (provision) for income taxes 477 — (963 ) — (2 ) (1 ) (488 ) (1 ) Gain (loss) on disposal, net of taxes $ (8,190 ) $ — $ 2,508 $ — $ 35 $ 3 $ (5,648 ) $ 3 Earnings (loss) from discontinued operations, net of taxes $ (8,011 ) $ (185 ) $ 2,544 $ 237 $ 255 $ (1,579 ) $ (5,212 ) $ (1,526 ) (a) Earnings (loss) of discontinued operations attributable to the Company after income taxes was $378 million and $(1,432) million for the nine months ended September 30, 2019 and 2018 respectively. ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS (In millions) September 30, 2019 December 31, 2018 Cash, cash equivalents and restricted cash $ 602 $ 4,424 Investment securities 207 522 Current receivables 81 6,258 Inventories — 5,419 Financing receivables held for sale (Polish mortgage portfolio) 2,542 2,745 Property, plant and equipment - net and Operating leases 139 7,139 Goodwill and intangible assets - net — 31,622 Deferred income taxes 312 1,174 All other assets 296 4,550 Assets of discontinued operations(a) $ 4,178 $ 63,853 Accounts payable and Progress collections and deferred income $ 32 $ 6,806 Operating lease liabilities 217 — Other GE current liabilities 51 2,002 All other liabilities 88 10,473 Liabilities of discontinued operations(b) $ 387 $ 19,281 (a) Assets of discontinued operations included $54,596 million and $4,573 million related to our Baker Hughes and Transportation businesses, respectively as of December 31, 2018. (b) Liabilities of discontinued operations included $15,535 million and $1,871 million related to our Baker Hughes and Transportation businesses, respectively as of December 31, 2018. Included within all other liabilities of discontinued operations at September 30, 2019 and December 31, 2018 are intercompany tax receivables in the amount of $ 879 million and $1,141 million , respectively, primarily related to the financial services businesses that were part of the GE Capital Exit Plan, that are offset within all other liabilities of consolidated GE. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | NOTE 3. INVESTMENT SECURITIES All of our debt securities are classified as available-for-sale and substantially all are investment-grade debt securities supporting obligations to annuitants and policyholders in our run-off insurance operations. Changes in fair value of our debt securities are recorded to other comprehensive income. All of our equity securities have readily determinable fair values and changes in fair value are recorded to earnings. September 30, 2019 December 31, 2018 (In millions) Amortized Gross Gross Estimated Amortized Gross Gross Estimated Debt U.S. corporate $ 22,945 $ 4,728 $ (20 ) $ 27,653 $ 21,306 $ 2,257 $ (357 ) $ 23,206 Non-U.S. corporate 2,212 262 (1 ) 2,473 1,906 53 (76 ) 1,883 State and municipal 3,207 705 (19 ) 3,893 3,320 367 (54 ) 3,633 Mortgage and asset-backed 3,000 158 (3 ) 3,155 3,325 51 (54 ) 3,322 Government and agencies 1,420 155 — 1,575 1,314 62 (20 ) 1,357 Equity 9,476 — — 9,476 107 — — 107 Total $ 42,259 $ 6,008 $ (42 ) $ 48,225 $ 31,277 $ 2,792 $ (561 ) $ 33,508 The estimated fair values of investment securities at September 30, 2019 increased since December 31, 2018, primarily due to decreases in market yields and the classification of our remaining equity interest in Baker Hughes within investment securities. We elected to account for our remaining Baker Hughes interest, comprising our 36.8% ownership interest and a promissory note receivable, at fair value, which is estimated at $9,356 million at September 30, 2019. During the three months ended September 30, 2019, we completed the sale of our remaining Wabtec common stock for proceeds of $1,584 million . See Note 2 for further information. Net unrealized gains (losses) recorded to earnings for equity securities were $(89) million and $(131) million for the three and nine months ended September 30, 2019 , respectively, including a loss of $(125) million related to our interest in Baker Hughes. Net unrealized gains (losses) recorded to earnings for equity securities were $(57) million and $210 million for the three and nine months ended September 30, 2018, respectively. Although we generally do not have the intent to sell any specific debt securities in the ordinary course of managing our portfolio, we may sell debt 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. Where we have retained an equity interest in disposed businesses, we intend to sell those equity interests when it's economically advantageous to do so. Proceeds from debt and equity securities sales, early redemptions by issuers and principal payments on the Baker Hughes promissory note totaled $2,318 million and $1,483 million in the three months ended and $6,652 million and $2,173 million in the nine months ended September 30, 2019 and 2018, respectively. Gross realized gains on investment securities were $10 million and $11 million and gross realized losses and impairments were $(75) million and $(32) million in the three months ended September 30, 2019 and 2018, respectively. Gross realized gains on investment securities were $86 million and $49 million and gross realized losses and impairments were $(181) million and $(35) million in the nine months ended September 30, 2019 and 2018, respectively. These realized losses included $(70) million and $(130) million related to the Wabtec sale in the three months and nine months ended September 30, 2019 , respectively. Gross unrealized losses of $(10) million and $(32) million are associated with debt securities with a fair value of $791 million and $333 million that have been in a loss position for less than 12 months and 12 months or more, respectively, at September 30, 2019 . Gross unrealized losses of $(310) million and $(251) million are associated with debt securities with a fair value of $7,048 million and $3,856 million that have been in a loss position for less than 12 months and 12 months or more, respectively, at December 31, 2018. 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 $ 390 $ 396 After one year through five years 2,808 2,964 After five years through ten years 6,636 7,628 After ten years 19,950 24,606 We expect actual maturities to differ from contractual maturities because borrowers have the right to call or prepay certain obligations. Substantially all of our equity securities are classified within Level 1 and substantially all our debt securities are classified within Level 2 as their valuation is determined based on significant observable inputs. Investments with a fair value of $ 4,971 million and $4,013 million were classified within Level 3 as significant inputs to the valuation model are unobservable at September 30, 2019 and December 31, 2018, respectively. During the nine months ended September 30, 2019 and 2018, there were no significant transfers into or out of Level 3. In addition to the investment securities described above, we hold $586 million and $542 million of equity securities without readily determinable fair value at September 30, 2019 and December 31, 2018, respectively that are classified within "All other assets" in our consolidated Statement of Financial Position. We recognize these assets at cost and have recorded insignificant fair value increases, net of impairment, for the three and nine months ended September 30, 2019 and 2018, respectively and cumulatively, based on observable transactions. |
CURRENT AND LONG-TERM RECEIVABL
CURRENT AND LONG-TERM RECEIVABLES | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
CURRENT AND LONG-TERM RECEIVABLES | NOTE 4. CURRENT AND LONG-TERM RECEIVABLES CURRENT RECEIVABLES Consolidated GE (In millions) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Customer receivables $ 12,225 $ 10,742 $ 8,444 $ 6,355 Sundry receivables 4,638 4,573 5,059 4,569 Allowance for losses (845 ) (670 ) (845 ) (662 ) Total current receivables $ 16,018 $ 14,645 $ 12,657 $ 10,262 Current sundry receivables include supplier advances, revenue sharing programs receivables, other non-income based tax receivables, certain intercompany balances that eliminate upon consolidation and deferred purchase price. The deferred purchase price represents our retained risk with respect to current customer receivables sold to third parties through one of the Receivable Facilities. The balance of the deferred purchase price held by GE Capital at September 30, 2019 and December 31, 2018, was $ 368 million and $ 468 million, respectively. Sales of GE current customer receivables. During any given period, GE sells customer receivables to manage short-term liquidity and credit exposure. These sales to GE Capital or third parties are made on arm's length terms and any discount related to time value of money is recognized by GE when the customer receivables are sold. During the nine months ended September 30, 2019 and 2018, GE sold approximately 59% and 70% , respectively, of its customer receivables to GE Capital or third parties. Activity related to customer receivables sold by GE is as follows: Nine months ended September 30 (In millions) 2019 2018 GE Capital (a) Third Parties GE Capital (a) Third Parties Balance at January 1 $ 4,386 $ 7,880 $ 9,656 $ 5,710 GE sales to GE Capital 30,383 — 37,349 — GE sales to third parties — 3,002 — 3,417 GE Capital sales to third parties (20,505 ) 20,505 (22,212 ) 22,212 Collections and other (10,746 ) (25,004 ) (19,395 ) (24,431 ) Reclassification from long-term customer receivables 265 — 492 — Balance at September 30 $ 3,782 $ 6,382 $ 5,889 $ 6,907 (a) At September 30, 2019 and 2018, $ 866 million and $ 1,675 million , respectively, of the current receivables purchased and retained by GE Capital, had been sold by GE to GE Capital with recourse (i.e., GE retains all or some risk of default). The effect on GE CFOA of claims by GE Capital on receivables sold with recourse has been insignificant for the nine months ended September 30, 2019 and 2018. When GE sells customer receivables to GE Capital or third parties it accelerates the receipt of cash that would otherwise have been collected from customers. In any given period, the amount of cash received from sales of customer receivables compared to the cash GE would have otherwise collected had those customer receivables not been sold represents the cash generated or used in the period relating to this activity. Sales to GE Capital impact GE CFOA, while sales to third parties impact both GE and consolidated CFOA. The impact of selling fewer customer receivables to GE Capital, including those subsequently sold by GE Capital to third parties, decreased GE’s CFOA by $1,847 million and $2,718 million in the nine months ended September 30, 2019 and 2018, respectively. LONG-TERM RECEIVABLES. In certain circumstances, GE provides customers, primarily within our Power, Renewable Energy and Aviation businesses, with extended payment terms for the purchase of new equipment, purchases of upgrades and spare parts for our long-term service agreements. These long-term customer receivables are initially recorded at present value and have an average remaining duration of approximately 3 years and are included in “All other assets” in the consolidated Statement of Financial Position. Consolidated GE (In millions) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Long-term customer receivables $ 1,181 $ 1,442 $ 653 $ 559 Long-term sundry receivables 1,545 1,180 1,743 1,519 Allowance for losses (110 ) (145 ) (110 ) (145 ) Total long-term receivables $ 2,616 $ 2,477 $ 2,285 $ 1,933 Long-term sundry receivables include supplier advances, revenue sharing programs receivables, other non-income based tax receivables and certain intercompany balances that eliminate upon consolidation. Sales of GE long-term customer receivables. GE may sell long-term customer receivables to manage liquidity and credit exposure. Through the second quarter of 2018, these sales were primarily made to GE Capital, while subsequently, GE has sold an insignificant amount to third parties to transfer economic risk during both the nine months ended September 30, 2019 and 2018. Activity related to long-term customer receivables purchased by GE Capital is as follows: Nine months ended September 30 (In millions) 2019 2018 GE Capital(a) GE Capital(a) Balance at January 1 $ 883 $ 1,947 GE sales to GE Capital — 123 Sales, collections, accretion and other (90 ) (272 ) Reclassification to current customer receivables (265 ) (492 ) Balance at September 30 $ 528 $ 1,307 (a) At September 30, 2019 and 2018, $402 million and $797 million, respectively, of long-term customer receivables purchased and retained by GE Capital, had been sold by GE to GE Capital with recourse (i.e., GE retains all or some risk of default). The effect on GE CFOA of claims by GE Capital on receivables sold with recourse have been insignificant for the nine months ended September 30, 2019 and 2018. Similar to sales of current customer receivables, sales of long-term customer receivables can result in cash generation or use in our Statements of Cash Flows. The impact from the sale of long-term customer receivables to GE Capital, including those subsequently sold by GE Capital to third parties, decreased GE’s CFOA by $380 million and $629 million in the nine months ended September 30, 2019 and 2018, respectively. UNCONSOLIDATED RECEIVABLES FACILITIES . GE Capital has two revolving Receivables Facilities, with a total program size of $5,100 million , under which customer receivables purchased from GE are sold to third parties. In one of the facilities, upon the sale of receivables, we receive proceeds of cash and deferred purchase price and the Company’s remaining risk with respect to the sold receivables is limited to the balance of the deferred purchase price. In the other facility, upon the sale of receivables, we receive proceeds of cash only and therefore the Company has no remaining risk with respect to the sold receivables. Activity related to these facilities is included in “GE Capital sales to third parties” line in the table above and is as follows: Nine months ended September 30 (In millions) 2019 2018 Customer receivables sold to receivables facilities $ 16,062 $ 17,115 Total cash purchase price for customer receivables 15,824 13,096 Cash collections re-invested to purchase customer receivables 13,286 11,518 Non-cash increases to deferred purchase price $ 168 $ 3,935 Cash payments received on deferred purchase price 268 3,905 CONSOLIDATED SECURITIZATION ENTITIES . GE Capital consolidates three variable interest entities (VIEs) that purchased customer receivables and long-term customer receivables from GE. At September 30, 2019 and December 31, 2018 these VIEs held current customer receivables of $1,976 million and $2,141 million and long-term customer receivables of $456 million and $678 million , respectively that were funded through the issuance of non-recourse debt to third parties. At September 30, 2019 and December 31, 2018, the outstanding debt under their respective debt facilities was $1,498 million and $1,875 million |
FINANCING RECEIVABLES AND ALLOW
FINANCING RECEIVABLES AND ALLOWANCES | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES AND ALLOWANCES | NOTE 5. FINANCING RECEIVABLES AND ALLOWANCES Consolidated GE Capital (In millions) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Loans, net of deferred income $ 1,251 $ 5,118 $ 5,639 $ 10,834 Investment in financing leases, net of deferred income 2,120 2,639 2,120 2,822 3,371 7,757 7,759 13,656 Allowance for losses (50 ) (58 ) (12 ) (28 ) Financing receivables – net $ 3,321 $ 7,699 $ 7,748 $ 13,628 Consolidated finance lease income was $43 million and $65 million in the three months ended September 30, 2019 and 2018, respectively, and $135 million and $193 million for the nine months ended September 30, 2019 and 2018, respectively. In August 2019, we announced an agreement to sell PK AirFinance, and as of the third quarter of 2019, we classified related financing receivables of $3,849 million within "Assets of businesses held for sale" in our consolidated Statement of Financial Position. See Note 2 for further information. We manage our GE Capital financing receivables portfolio using delinquency and nonaccrual data as key performance indicators. At September 30, 2019, 3.3% , 2.3% and 3.7% of financing receivables were over 30 days past due, over 90 days past due and on nonaccrual, respectively, with the vast majority of nonaccrual financing receivables secured by collateral. At December 31, 2018, 2.4% , 1.8% and 0.9% of financing receivables were over 30 days past due, over 90 days past due and on nonaccrual, respectively. The increase in these key performance indicators at September 30, 2019 is primarily a result of the PK AirFinance reclassification described above. GE Capital financing receivables that comprise receivables purchased from GE are reclassified to either "Current receivables" or "All other assets" in the consolidated Statement of Financial Position. To the extent these receivables are purchased with full or limited recourse, they are excluded from the delinquency and nonaccrual data above. See Note 4 for further information. The portfolio also includes $385 million and $688 million of financing receivables that are guaranteed by GE, of which $93 million and $96 million of these loans are on nonaccrual at the consolidated level at September 30, 2019 and December 31, 2018, respectively. Additional allowance for loan losses are recorded at GE and at the consolidated level for these guaranteed loans. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 6. INVENTORIES (In millions) September 30, 2019 December 31, 2018 Raw materials and work in process $ 8,983 $ 8,057 Finished goods 6,025 5,548 Unbilled shipments 195 197 Total inventories $ 15,203 $ 13,803 |
PROPERTY, PLANT AND EQUIPMENT A
PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES | NOTE 7. PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES PROPERTY, PLANT AND EQUIPMENT (In millions) September 30, 2019 December 31, 2018 Original cost $ 75,196 $ 75,618 Less accumulated depreciation and amortization (32,310 ) (32,007 ) Property, plant and equipment – net $ 42,886 $ 43,611 Consolidated depreciation and amortization on property, plant and equipment was $1,004 million and $1,257 million in the three months ended September 30, 2019 and 2018, respectively, and $2,969 million and $3,357 million for the nine months ended September 30, 2019 and 2018 , respectively. Operating lease income on our equipment leased to others was $934 million and $997 million for the three months ended September 30, 2019 and 2018, respectively, and comprises fixed lease income of $755 million and $828 million and variable lease income of $178 million and $169 million , respectively. Operating lease income on our equipment leased to others was $2,883 million and $3,003 million for the nine months ended September 30, 2019 and 2018, respectively, and comprises of fixed lease income of $2,293 million and $2,457 million and variable lease income of $589 million and $546 million , respectively. Operating Lease Assets and Liabilities. Our ROU assets and lease liabilities for operating leases were $ 2,970 million and $ 3,169 million , respectively, as of September 30, 2019. Substantially all of our operating leases have remaining lease terms of 12 years or less , some of which may include options to extend. OPERATING LEASE EXPENSE Three months ended September 30 Nine months ended September 30 (In millions) 2019 2018 2019 2018 Long-term (fixed) $ 180 $ 232 $ 625 $ 733 Long-term (variable) 41 26 111 135 Short-term 60 34 150 100 Total operating lease expense $ 281 $ 292 $ 887 $ 968 MATURITY OF LEASE LIABILITIES (In millions) Total 2019 (excluding nine months ended September 30, 2019) $ 212 2020 769 2021 636 2022 530 2023 429 Thereafter 1,195 Total undiscounted lease payments 3,771 Less: imputed interest (602 ) Total lease liability as of September 30, 2019 $ 3,169 SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES (In millions) Operating cash flows used for operating leases for the nine months ended September 30, 2019 $ 683 Right-of-use assets obtained in exchange for new lease liabilities for the nine months ended September 30, 2019 $ 459 Weighted-average remaining lease term at September 30, 2019 6.8 years Weighted-average discount rate at September 30, 2019 5.1 % |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 8. GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL (In millions) January 1, 2019 Dispositions and classification to held for sale Impairments Currency exchange Balance at Power $ 139 $ — $ — $ 6 $ 145 Renewable Energy 4,730 — (1,484 ) 33 3,279 Aviation 9,839 — — (31 ) 9,808 Healthcare 17,226 (5,532 ) — 28 11,722 Capital 904 (39 ) — (25 ) 839 Corporate 1,136 — — (263 ) 873 Total $ 33,974 $ (5,571 ) $ (1,484 ) $ (253 ) $ 26,666 Goodwill balances decreased primarily as a result of transferring our BioPharma business within our Healthcare segment to held for sale and goodwill impairments at our Hydro and Grid Solutions equipment and services reporting units within our Renewable Energy segment. We test goodwill for impairment annually in the third quarter of each year. Subsequent to this year's third quarter testing, and in order to improve alignment of our annual goodwill impairment test and strategic planning processes, we are changing our annual testing date from the third quarter to the fourth quarter. As a result, we will be required to retest each of our reporting units in the fourth quarter of 2019. 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 when 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 the 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 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 annual reporting unit valuations ranged from 9.6% to 22.0% . Based on the results of our annual impairment test, the fair values of each of our reporting units exceeded their carrying values except for our Hydro reporting unit within our Renewable Energy segment. The Hydro reporting unit continues to experience declines in order growth and increased project costs which resulted in downward revisions to our current and projected earnings and cash flows for this business. Therefore, we performed a step two analysis which resulted in a non-cash goodwill impairment loss of $740 million . We determined the fair value of the Hydro reporting unit using a combination of the income and market approaches. We recorded the impairment loss in the caption “Goodwill impairments” in our consolidated Statement of Earnings (Loss). After the impairment charge, there is no remaining goodwill associated with our Hydro reporting unit. All of the goodwill in this reporting unit was previously recognized as a result of the Alstom acquisition. In addition, we continue to monitor the operating results and cash flow forecasts of our Additive reporting unit in our Aviation segment as the fair value of this reporting unit was not significantly in excess of its carrying value. At September 30, 2019, our Additive reporting unit had goodwill of $1,097 million . We also continue to evaluate strategic options to accelerate the further reduction in the size of GE Capital, some of which could have a material charge depending on the timing, negotiated terms and conditions of any agreements, including $839 million of goodwill. In the second quarter of 2019, we reorganized our Grid Solutions reporting unit in our Power segment by separating our Grid Solutions software business from the Grid Solutions reporting unit. Our Grid Solutions software business was then moved into Corporate and combined with our Digital business. In addition, the remaining Grid Solutions reporting unit (now referred to as Grid Solutions equipment and services) was moved into our Renewable Energy segment as a separate reporting unit. As a result, we allocated goodwill between Grid Solutions software and the Grid Solutions equipment and services reporting unit based on the relative fair values of each business. This resulted in $1,618 million of goodwill transferring from our Power segment to our Renewable Energy segment and our Digital business within Corporate in the amounts of $744 million and $874 million , respectively. As a consequence of separating the two businesses, the Grid Solutions equipment and services reporting unit’s fair value was below its carrying value. Therefore, we conducted step two of the goodwill impairment test for this reporting unit using a current outlook. In performing the second step, we identified unrecognized intangible assets primarily related to internally developed technology and trade name. The combination of these unrecognized intangibles, adjustments to the carrying value of other assets and liabilities, and reduced reporting unit fair value calculated in step one, resulted in an implied fair value of goodwill below the carrying value of goodwill for the Grid Solutions equipment and services reporting unit. Therefore, we recorded a non-cash goodwill impairment loss of $744 million in the caption "Goodwill impairments" in our consolidated Statement of Earnings (Loss). After the impairment charge, there is no remaining goodwill associated with our Grid Solutions equipment and services reporting unit. Further, in the second quarter of 2019, a portion of goodwill recorded at Corporate associated with our Digital acquisitions that was previously allocated to our Renewable Energy, Aviation and Healthcare segments in purchase accounting and for goodwill testing purposes is reflected in these segments in the table above. In 2018, we recognized a total non-cash goodwill impairment loss of $22,136 million in our Power Generation, Grid Solutions, and Hydro reporting units in our Power and Renewable Energy segments, of which $21,973 million was recorded in the third quarter of 2018. Determining 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 - NET (In millions) September 30, 2019 December 31, 2018 Intangible assets subject to amortization $ 10,766 $ 12,178 Intangible assets decreased in the third quarter of 2019, primarily as a result of amortization, impairments, and the transfer of BioPharma within our Healthcare segment to held for sale of $526 million . Consolidated amortization expense was $496 million and $831 million in the three months ended September 30, 2019 and 2018, respectively, and $ 1,220 million and $1,740 million in the nine months ended September 30, 2019 and 2018 , respectively. Included within amortization expense for the three and nine months ended September 30, 2019 and September 30, 2018 were non-cash impairment charges recorded in Corporate and in our Power segment for $103 million and $428 million |
REVENUES
REVENUES | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | NOTE 9. REVENUES The equipment and services revenues classification in the table below is consistent with our segment MD&A presentation. EQUIPMENT & SERVICES REVENUES Three months ended September 30 (In millions) 2019 2018 Equipment Services Total Equipment Services Total Power $ 1,434 $ 2,492 $ 3,926 $ 1,334 $ 3,225 $ 4,559 Renewable Energy 3,609 816 4,425 3,414 505 3,920 Aviation 3,149 4,960 8,109 2,833 4,646 7,480 Healthcare 2,828 2,095 4,923 2,700 2,006 4,707 Total Industrial segment revenues $ 11,020 $ 10,363 $ 21,383 $ 10,283 $ 10,383 $ 20,665 EQUIPMENT & SERVICES REVENUES Nine months ended September 30 (In millions) 2019 2018 Equipment Services Total Equipment Services Total Power $ 4,473 $ 8,751 $ 13,224 $ 6,224 $ 10,545 $ 16,768 Renewable Energy 8,457 2,133 10,590 7,979 1,663 9,642 Aviation 9,295 14,645 23,940 8,281 13,830 22,111 Healthcare 8,320 6,220 14,540 8,119 6,268 14,387 Total Industrial segment revenues $ 30,545 $ 31,748 $ 62,293 $ 30,602 $ 32,305 $ 62,908 SUB-SEGMENT REVENUES Three months ended September 30 Nine months ended September 30 (In millions) 2019 2018 2019 2018 Gas Power $ 2,732 $ 2,678 $ 9,242 $ 9,719 Power Portfolio 1,194 1,882 3,982 7,050 Power $ 3,926 $ 4,559 $ 13,224 $ 16,768 Onshore Wind $ 3,193 $ 2,523 $ 7,084 $ 5,119 Grid Solutions equipment and services 1,004 1,059 2,876 3,483 Hydro and Offshore Wind 228 337 630 1,041 Renewable Energy $ 4,425 $ 3,920 $ 10,590 $ 9,642 Commercial Engines & Services $ 5,997 $ 5,636 $ 17,796 $ 16,443 Military 1,061 898 3,073 2,942 Systems & Other 1,050 946 3,071 2,726 Aviation $ 8,109 $ 7,480 $ 23,940 $ 22,111 Healthcare Systems $ 3,642 $ 3,566 $ 10,664 $ 10,877 Life Sciences 1,280 1,140 3,875 3,509 Healthcare $ 4,923 $ 4,707 $ 14,540 $ 14,387 Total Industrial Segment Revenues $ 21,383 $ 20,665 $ 62,293 $ 62,908 Capital(a) 2,097 2,473 6,645 7,075 Corporate items and eliminations (120 ) 254 39 531 Consolidated Revenues $ 23,360 $ 23,392 $ 68,976 $ 70,513 (a) Substantially all of our revenues at GE Capital are outside of the scope of ASC 606. REMAINING PERFORMANCE OBLIGATION . As of September 30, 2019, the aggregate amount of the contracted revenues allocated to our unsatisfied (or partially unsatisfied) performance obligations was $240,536 million . We expect to recognize revenue as we satisfy our remaining performance obligations as follows: 1) equipment-related remaining performance obligation of $45,809 million of which 53% , 66% and 71% is expected to be satisfied within 1 , 2 and 5 years , respectively, and the remaining thereafter; and 2) services-related remaining performance obligation of $194,727 million of which 11% , 48% , 72% and 91% 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 AND OTHER DEFERRED ASS
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME | 9 Months Ended |
Sep. 30, 2019 | |
Contractors [Abstract] | |
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME | NOTE 10. CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME Contract and other deferred assets decreased $298 million in 2019. Our long-term service agreements decreased primarily due to billings of $8,306 million and a net unfavorable change in estimated profitability of $61 million at Aviation and $57 million at Power, offset by revenues recognized of $8,162 million . Our short-term and other service agreements increased due to the timing of revenue recognition ahead of billings primarily at Aviation. September 30, 2019 (In millions) Power Aviation Renewable Energy Healthcare and Other Total Revenues in excess of billings $ 5,346 $ 4,901 $ — $ — $ 10,247 Billings in excess of revenues (1,560 ) (3,293 ) — — (4,853 ) Long-term service agreements 3,787 1,607 — — 5,394 Short-term and other service agreements 172 343 — 290 804 Equipment contract revenues 2,670 93 1,288 324 4,374 Total contract assets 6,628 2,042 1,288 614 10,573 Deferred inventory costs 904 357 1,574 351 3,186 Nonrecurring engineering costs 42 2,107 62 45 2,257 Customer advances and other 1 1,149 — (32 ) 1,118 Contract and other deferred assets $ 7,576 $ 5,655 $ 2,924 $ 978 $ 17,133 December 31, 2018 (In millions) Power Aviation Renewable Energy Healthcare and Other Total Revenues in excess of billings $ 5,368 $ 5,412 $ — $ — $ 10,780 Billings in excess of revenues (1,693 ) (3,297 ) — — (4,989 ) Long-term service agreements 3,675 2,115 — — 5,790 Short-term and other service agreements 167 272 — 251 690 Equipment contract revenues 2,761 80 1,174 384 4,400 Total contract assets 6,603 2,468 1,174 635 10,880 Deferred inventory costs 1,003 673 1,267 365 3,309 Nonrecurring engineering costs 43 1,916 85 51 2,095 Customer advances and other — 1,146 — — 1,146 Contract and other deferred assets $ 7,650 $ 6,204 $ 2,525 $ 1,052 $ 17,431 Progress collections represent cash received from customers under ordinary commercial payment terms in advance of delivery. Progress collections on equipment contracts primarily comprises milestone payments received from customer prior to the manufacture and delivery of customized equipment orders. Other progress collections primarily comprise down payments from customers to reserve production slots for standardized inventory orders such as advance payments from customers when they place orders for wind turbines and blades within our Renewable Energy segment and payments from airframers and airlines for install and spare engines, respectively, within our Aviation segment. Progress collections and deferred income increased $6 million in 2019 primarily due to milestone payments received primarily at Aviation. These increases were partially offset by the timing of revenue recognition in excess of new collections received, primarily at Power and Renewable Energy. Revenues recognized for contracts included in liability position at the beginning of the year were $9,565 million and $ 10,692 million for the nine months ended September 30, 2019 and 2018, respectively . September 30, 2019 (In millions) Power Aviation Renewable Energy Healthcare and Other Total Progress collections on equipment contracts $ 5,568 $ 95 $ 1,105 $ — $ 6,768 Other progress collections 566 4,700 3,297 464 9,026 Total progress collections 6,133 4,795 4,402 464 15,794 Deferred income 40 1,447 290 1,673 3,450 GE Progress collections and deferred income $ 6,174 $ 6,241 $ 4,692 $ 2,137 $ 19,245 December 31, 2018 (In millions) Progress collections on equipment contracts $ 5,536 $ 114 $ 1,325 $ — $ 6,975 Other progress collections 691 4,034 3,557 500 8,783 Total progress collections 6,227 4,148 4,883 500 15,758 Deferred income 112 1,338 260 1,770 3,480 GE Progress collections and deferred income $ 6,339 $ 5,486 $ 5,143 $ 2,271 $ 19,239 |
BORROWINGS
BORROWINGS | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 11. BORROWINGS (In millions) September 30, 2019 December 31, 2018 Short-term borrowings Commercial paper $ 2,997 $ 3,005 Current portion of long-term borrowings 764 60 Current portion of long-term borrowings assumed by GE 7,310 4,207 Other 1,703 2,081 Total GE short-term borrowings $ 12,775 $ 9,354 Current portion of long-term borrowings $ 4,601 $ 3,984 Intercompany payable to GE 2,990 2,684 Other 522 1,015 Total GE Capital short-term borrowings $ 8,113 $ 7,684 Eliminations (3,842 ) (4,262 ) Total short-term borrowings $ 17,046 $ 12,776 Long-term borrowings Senior notes $ 14,690 $ 20,387 Senior notes assumed by GE 23,384 29,218 Subordinated notes assumed by GE 2,820 2,836 Other 418 417 Total GE long-term borrowings $ 41,311 $ 52,858 Senior notes $ 32,537 $ 35,105 Subordinated notes 199 165 Intercompany payable to GE 17,255 19,828 Other 654 885 Total GE Capital long-term borrowings $ 50,645 $ 55,982 Eliminations (17,255 ) (19,892 ) Total long-term borrowings $ 74,701 $ 88,949 Non-recourse borrowings of consolidated securitization entities 1,498 1,875 Total borrowings $ 93,244 $ 103,599 At September 30, 2019 , the outstanding GE Capital borrowings that had been assumed by GE as part of the GE Capital Exit Plan was $33,514 million ( $7,310 million short term and $26,204 long term), for which GE has an offsetting Receivable from GE Capital of $20,244 million . The difference of $13,269 million ( $4,320 million in short-term borrowings and $8,949 million in long-term borrowings) represents the amount of borrowings GE Capital had funded with available cash to GE via intercompany loans in lieu of GE issuing borrowings externally. In the third quarter of 2019, GE repaid $480 million of maturing intercompany loans from GE Capital. At September 30, 2019 , total GE borrowings of $33,842 million was comprised of GE-issued borrowings of $20,572 million and intercompany loans from GE Capital to GE of $13,269 million as described above. GE has 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, 2019 , the Guarantee applies to $34,807 million of GE Capital debt. On September 30, 2019, GE completed a tender offer to purchase $4,846 million in aggregate principal amount of certain senior unsecured debt, comprised of $1,250 million of 4.500% Notes due 2044, $1,144 million of 4.125% Notes due 2042, €992 million ( $1,101 million equivalent) of 2.125% Notes due 2037, €784 million ( $870 million equivalent) of 1.500% Notes due 2029, €374 million ( $415 million equivalent) of 1.875% Notes due 2027, and €59 million ( $66 million equivalent) of 1.250% notes due 2023. The total cash consideration paid for these purchases was $5,031 million and the total carrying amount of the purchased notes was $4,787 million , resulting in a loss of $255 million (including $12 million of accrued fees and other costs associated with the tender) which was recorded in Interest and other financial charges in the GE Statement of Earnings (Loss). In addition to the purchase price, GE paid any accrued and unpaid interest on the purchased notes through the date of purchase. Non-recourse borrowings of consolidated securitization entities are primarily short term in nature. See Notes 4 and 18 for further information. See Note 17 for further information about borrowings and associated interest rate swaps. |
INSURANCE LIABILITIES AND ANNUI
INSURANCE LIABILITIES AND ANNUITY BENEFITS | 9 Months Ended |
Sep. 30, 2019 | |
Insurance [Abstract] | |
INSURANCE LIABILITIES AND ANNUITY BENEFITS | NOTE 12. INSURANCE LIABILITIES AND ANNUITY BENEFITS Insurance liabilities and annuity benefits comprise mainly obligations to annuitants and insureds in our run-off insurance activities. September 30, 2019 (In millions) Long-term care insurance contracts Structured settlement annuities & life insurance contracts Other Other adjustments(a) Total Future policy benefit reserves $ 16,770 $ 9,578 $ 182 $ 5,903 $ 32,433 Claim reserves 4,130 236 1,154 — 5,520 Investment contracts — 1,165 1,074 — 2,239 Unearned premiums and other 28 198 132 — 358 20,928 11,177 2,542 5,903 40,550 Eliminations — — (466 ) — (466 ) Total $ 20,928 $ 11,177 $ 2,076 $ 5,903 $ 40,084 December 31, 2018 (In millions) Future policy benefit reserves $ 16,029 $ 9,495 $ 169 $ 2,247 $ 27,940 Claim reserves 3,917 230 1,178 — 5,324 Investment contracts — 1,239 1,149 — 2,388 Unearned premiums and other 34 205 103 — 342 19,980 11,169 2,599 2,247 35,994 Eliminations — — (432 ) — (432 ) Total $ 19,980 $ 11,169 $ 2,167 $ 2,247 $ 35,562 (a) To the extent that unrealized gains on specific investment 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 after-tax reduction of net unrealized gains recognized through "Accumulated other comprehensive income (loss)" in our consolidated Statement of Earnings (Loss). We annually perform premium deficiency testing in the aggregate across our run-off insurance portfolio. As previously disclosed in our second quarter 2019 10-Q, we planned to perform this year’s testing in the third quarter of 2019, consistent with our historical practice prior to 2017 when we reconstructed our claim cost curves. These procedures included updating experience studies since our last test completed in the fourth quarter of 2018, independent actuarial analysis and review of industry benchmarks. As we experienced a premium deficiency in 2018, our 2019 premium deficiency testing started with a zero margin and, accordingly, any net adverse development would result in a future charge to earnings. Using our most recent future policy benefit reserve assumptions, including changes to our assumptions related to discount rate and future premium rate increases, as described below, we identified a premium deficiency resulting in a $972 million non-cash pre-tax charge to earnings in the third quarter 2019. The increase to future policy benefit reserves resulting from our 2019 testing was primarily attributable to the following key assumption changes: • We have observed a significant decline in market interest rates this year, which has resulted in a lower discount rate and adversely impacted our reserve margin by $1,344 million . As noted above, our discount rate is based upon the actual yields on our investment portfolio and our forecasted reinvestment rates, which comprise the future rates at which we expect to invest proceeds from investment maturities, net of operating cash flows, and projected future capital contributions. Market interest rates have declined by approximately 130 basis points since our 2018 premium deficiency test, with 60 basis points of this reduction occurring since the second quarter 2019. Although the movement in market rates impacts the reinvestment rate, it does not materially impact the actual yield on our existing investments. Furthermore, our assumed reinvestment rate on future fixed income investments is based both on current expected long-term average rates and market interest rates. Thus, a decline in market interest rates will not result in an equivalent decline in our discount rate assumption. Our discount rate assumption for purposes of performing the premium deficiency assessment resulted in weighted average rate of 5.74% compared to 6.04% in 2018. This decline in the discount rate from 2018 to 2019 reflected a lower reinvestment rate increasing to an expected long-term average investment yield over a longer period, lower prospective expected returns on higher yielding assets classes introduced with our 2018 strategic initiatives, and slightly lower actual yields on our investment security portfolio. • Higher levels of projected long-term care premium rate increases due to larger rate filings by some ceding companies than previously planned, which favorably impacted our reserve margin by $263 million . Since our premium deficiency testing performed in 2018, we have implemented approximately $200 million of previously approved rate increase actions. Our 2019 premium deficiency test includes approximately $2,000 million of anticipated future premium increases or benefit reductions associated with future in-force rate actions. This represents an increase of $300 million from our 2018 premium deficiency test to account for actions that are: (a) approved and not yet implemented, (b) filed but not yet approved, and (c) estimated on future filings through 2028, and includes the effect of the lower discount rate mentioned above. Certain future adverse changes in our assumptions could result in the unlocking of reserves, resetting of actuarial assumptions to current assumptions, an increase to future policy benefit reserves and a charge to earnings. 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 $1,410 million and $1,641 million of which $(16) million and $1 million related to the recognition of adjustments to prior year claim reserves arising from our periodic reserve evaluation for the nine months ended September 30, 2019 and 2018, respectively. Paid claims were $1,237 million and $1,499 million in the nine months ended September 30, 2019 and 2018, respectively. Reinsurance recoverables are recorded when we cede insurance risk to third parties but are not relieved from our primary obligation to policyholders and cedents. These amounts, net of allowances, are included in the caption "Other GE Capital receivables" in our consolidated Statement of Financial Position, and amounted to $2,365 million and $2,271 million at September 30, 2019 and December 31, 2018, respectively. |
POSTRETIREMENT BENEFIT PLANS
POSTRETIREMENT BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2019 | |
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 that we present in three categories, principal pension plans, other pension plans and principal retiree benefit plans. Principal pension plans represent the GE Pension Plan and the GE Supplementary Pension Plan. Other pension plans include U.S. and non-U.S. pension plans with pension assets or obligations greater than $50 million . 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. Smaller pension plans with pension assets or obligations less than $50 million and other retiree benefit plans are not presented as they are not material individually or in the aggregate. EFFECT ON OPERATIONS OF BENEFIT PLANS. The components of benefit plans costs other than the service cost are included in the caption "Non-operating benefit costs" in our consolidated Statement of Earnings (Loss). Principal pension plans Three months ended September 30 Nine months ended September 30 (In millions) 2019 2018 2019 2018 Service cost for benefits earned $ 154 $ 232 $ 472 $ 667 Prior service cost amortization 34 36 101 108 Expected return on plan assets (863 ) (803 ) (2,588 ) (2,443 ) Interest cost on benefit obligations 724 666 2,173 1,999 Net actuarial loss amortization 767 947 2,300 2,841 Curtailment loss (a) — 46 51 46 Benefit plans cost $ 816 $ 1,124 $ 2,509 $ 3,218 (a) Curtailment loss in the nine months ended September 30, 2019 and September 30, 2018, results from the spin-off and subsequent merger of our Transportation segment with Wabtec and the Baker Hughes decision to no longer participate in the GE Pension Plan after December 31, 2018, respectively. These curtailment losses are included in "Earnings (loss) from discontinued operations" in our consolidated Statement of Earnings (Loss). Other pension plans Three months ended September 30 Nine months ended September 30 (In millions) 2019 2018 2019 2018 Service cost for benefits earned $ 61 $ 85 $ 197 $ 279 Prior service cost (credit) amortization 1 (2 ) 2 (4 ) Expected return on plan assets (316 ) (342 ) (945 ) (1,059 ) Interest cost on benefit obligations 154 150 467 462 Net actuarial loss amortization 83 78 250 243 Settlement/curtailment loss (gain) — — 16 (6 ) Benefit plans cost (income) $ (17 ) $ (31 ) $ (13 ) $ (85 ) Principal retiree benefit plans income was $ 31 million and $ 17 million for the three months ended September 30, 2019 and 2018, and $ 122 million and $ 58 million for the nine months ended September 30, 2019 and 2018, respectively, which includes a curtailment gain of $ 33 million in 2019 resulting from the Transportation transaction which is included in "Earnings (loss) from discontinued operations" in our consolidated Statement of Earnings (Loss). We also have a defined contribution plan for eligible U.S. employees that provides discretionary contributions. Defined contribution plan costs were $ 83 million and $ 104 million for the three months ended September 30, 2019 and 2018, respectively, and $ 274 million and $ 320 million for the nine months ended September 30, 2019 and 2018, respectively. In October 2019, we announced changes to the GE Pension Plan whereby the benefits for approximately 20,000 salaried employees will be frozen effective January 1, 2021 and thereafter these employees will receive increased benefits in the company sponsored defined contribution plan in lieu of participation in a defined benefit plan. As a result, we will recognize a non-cash pre-tax curtailment loss of approximately $300 million in the fourth quarter of 2019 as non-operating benefit costs. In addition, we announced changes to our GE Supplementary Pension Plan whereby the benefits for approximately 700 employees that became executives before 2011 will be frozen effective January 1, 2021 and thereafter these employees will earn future benefits in an installment retirement defined benefit plan currently offered to new executives since 2011. The change in the GE Supplementary Pension Plan is expected to reduce the projected benefit obligation by approximately $300 million and will be treated as a plan amendment that will be amortized over future periods as a reduction to non-operating benefit costs. As result of these actions, we have remeasured the pension assets and obligations for the affected plans as of the beginning of the fourth quarter. This will result in an increase in our projected benefit obligation and recognition of a net actuarial loss of approximately $5,000 million that will be recorded in Accumulated Other Comprehensive Income. The increase in the projected benefit obligation is primarily driven by a reduction in the discount rate since December 31, 2018, offset by our asset performance through September 30, 2019, and the impact of the GE Pension Plan freeze. This remeasurement and the $300 million curtailment loss associated with the GE Pension Plan described above will increase our non-operating benefit costs by approximately $600 million in the fourth quarter of 2019. Finally, we have offered approximately 100,000 former U.S. employees with a vested pension benefit a limited-time option to take a lump sum distribution in lieu of future monthly payments. Those accepting the option will be paid from the assets of the GE Pension Trust in December 2019. This action will accelerate the satisfaction of future pension obligations and could result in a non-cash pre-tax settlement loss in the fourth quarter of 2019, which will be determined based on the rate of acceptance. The settlement loss, if triggered, would be recognized as an additional non-operating benefit cost. The remeasurement described above is in addition to our annual year-end measurement of the funded status of our benefit plans that we will record as of December 31, 2019. As a result, the change in our pension benefit obligation and net actuarial loss will differ from the $5,000 million discussed above primarily as a result of any changes in interest rates and actual asset performance different from our expected return on assets in the fourth quarter as well as the amount of lump-sum distributions made to former U.S. employees in connection with the limited-time offer. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 14. INCOME TAXES Our consolidated effective income tax rate was 0.2% and (2.2)% during the nine months ended September 30, 2019 and 2018, respectively. The positive rate for 2019 reflects a tax benefit on a pretax loss. The negative rate for 2018 reflects a tax expense on a pretax loss. The rate for 2019 is lower than the U.S. statutory rate primarily due to favorable audit resolutions and U.S. business credits, partially offset by the cost of global activities, including the recently enacted base erosion and global intangible low tax income provisions and from largely non-deductible goodwill impairment charges associated with our Hydro and Grid Solutions equipment and services businesses within our Renewable Energy segment. 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 the benefit from other 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 low tax 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 Internal Revenue Service (IRS) is currently auditing our consolidated U.S. income tax returns for 2014-2015. In June 2019, the IRS completed the audit of our consolidated U.S. income tax returns for 2012-2013, which resulted in a decrease in our balance of "unrecognized tax benefits" (i.e., the aggregate tax effect of differences between tax return positions and the benefits recognized in our financial statements). The Company recognized a resulting non-cash continuing operations tax benefit of $378 million plus an additional net interest benefit of $107 million . Of these amounts, GE recorded $355 million of tax benefits and $98 million of net interest benefits and GE Capital recorded $23 million of tax benefits and $9 million of net interest benefits. GE Capital recorded an additional non-cash benefit in discontinued operations of $332 million of tax benefits and $46 million of net interest benefits. See Note 2 for further information. |
SHAREOWNERS_ EQUITY
SHAREOWNERS’ EQUITY | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
SHAREOWNERS’ EQUITY | NOTE 15. SHAREOWNERS’ EQUITY ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Three months ended September 30 Nine months ended September 30 (In millions) 2019 2018 2019 2018 Beginning balance $ 59 $ 21 $ (39 ) $ (102 ) Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes of $15, $(22), $30 and $26(a) 30 (74 ) 151 66 Reclassifications from OCI – net of deferred taxes of $(3), $5, $(9) and $3 (12 ) 17 (35 ) 1 Other comprehensive income (loss) 18 (57 ) 116 67 Less OCI attributable to noncontrolling interests — — — 1 Investment securities ending balance $ 77 $ (36 ) $ 77 $ (36 ) Beginning balance $ (5,874 ) $ (5,446 ) $ (6,134 ) $ (4,661 ) OCI before reclassifications – net of deferred taxes of $(12), $(24), $27 and $17 (189 ) (639 ) (191 ) (1,856 ) Reclassifications from OCI – net of deferred taxes of $(5), $(1), $(9) and $(1)(b) 951 7 1,234 385 Other comprehensive income (loss) 762 (632 ) 1,043 (1,471 ) Less OCI attributable to noncontrolling interests (63 ) (38 ) (41 ) (93 ) Currency translation adjustments ending balance $ (5,050 ) $ (6,040 ) $ (5,050 ) $ (6,040 ) Beginning balance $ 26 $ 36 $ 13 $ 62 OCI before reclassifications – net of deferred taxes of $(4), $2, $(1) and $(6) (30 ) (8 ) (43 ) (35 ) Reclassifications from OCI – net of deferred taxes of $6, $2, $7 and $9 28 (1 ) 56 — Other comprehensive income (loss) (2 ) (9 ) 13 (35 ) Less OCI attributable to noncontrolling interests 1 (1 ) 2 — Cash flow hedges ending balance $ 24 $ 27 $ 24 $ 27 Beginning balance $ (7,063 ) $ (8,043 ) $ (8,254 ) $ (9,702 ) OCI before reclassifications – net of deferred taxes of $1, $16, $36 and $71 39 73 (72 ) 199 Reclassifications from OCI – net of deferred taxes of $170, $230, $517 and $666 616 789 1,910 2,322 Other comprehensive income (loss) 655 862 1,838 2,521 Less OCI attributable to noncontrolling interests 4 — (4 ) — Benefit plans ending balance $ (6,412 ) $ (7,181 ) $ (6,412 ) $ (7,181 ) Accumulated other comprehensive income (loss) at September 30 $ (11,361 ) $ (13,229 ) $ (11,361 ) $ (13,229 ) (a) Included adjustments of $(877) million and $234 million for the three months ended September 30, 2019 and 2018, respectively and $(2,888) million and $1,705 million for the nine months ended September 30, 2019 and 2018, respectively, related to 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 security gains been realized. See Note 12 for further information. (b) Currency translation gains and losses included $1,079 million for the nine months ended September 30, 2019 in earnings (loss) from discontinued operations, net of taxes. In 2016, we issued $5,694 million of GE Series D preferred stock, which are callable on January 21, 2021. In addition to Series D, $250 million of existing GE Series A, B and C preferred stock are also outstanding. The total carrying value of GE preferred stock at September 30, 2019 was $5,695 million and will increase to $5,944 million by the respective call dates 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 $42 million and $39 million in the three months ended September 30, 2019 and 2018, respectively, and $270 million , including cash dividends of $147 million , and $260 million , including cash dividends of $147 million , for the nine months ending September 30, 2019 and 2018, respectively. In conjunction with 2016 exchange of GE Capital preferred stock into GE preferred stock, GE Capital issued preferred stock to GE for which the amount and terms mirrored the GE external preferred stock. In 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. After this conversion, GE Capital will no longer pay preferred dividends to GE. 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. See our Annual Report on Form 10-K for the year ended December 31, 2018 for further information. Noncontrolling interests in equity of consolidated affiliates amounted to $1,219 million and $20,500 million , including zero and $19,239 million attributable to Baker Hughes Class A shareholder at September 30, 2019 and December 31, 2018, respectively. In September 2019, pursuant to our announced plan of an orderly separation of Baker Hughes over time, we sold a total of 144.1 million shares which, reduced our ownership interest in from 50.2% to 36.8% . As a result, we have deconsolidated our Baker Hughes segment and reclassified results to discontinued operations for all periods presented . See Note 2 for further information. Net earnings (loss) attributable to noncontrolling interests were $39 million and $54 million , for the three months ended September 30, 2019 and 2018, respectively and $41 million and $105 million for the nine months ended September 30, 2019 and 2018, respectively. Dividends attributable to noncontrolling interests were $(110) million and $(96) million for the three months ended September 30, 2019 and 2018, respectively and $(325) million and $(260) million for the nine months ended September 30, 2019 and 2018, respectively. Redeemable noncontrolling interests presented within "All other liabilities" in our consolidated Statement of Financial Position include common shares issued by our affiliates that are redeemable at the option of the holder of those interests and amounted to $408 million and $378 million as of September 30, 2019 and December 31, 2018, respectively. Net earnings (loss) attributable to redeemable noncontrolling interests was insignificant and $(144) million for the three months ended September 30, 2019 and 2018, respectively and $32 million and $(293) million for the nine months ended September 30, 2019 and 2018, respectively. On October 2, 2018 we settled the redeemable noncontrolling interest balance associated with three joint ventures with Alstom, for a payment amount of $3,105 million in accordance with contractual payment terms. |
EARNINGS PER SHARE INFORMATION
EARNINGS PER SHARE INFORMATION | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE INFORMATION | NOTE 16. EARNINGS PER SHARE INFORMATION Three months ended September 30 2019 2018 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Earnings from continuing operations for per-share calculation $ (1,283 ) $ (1,283 ) $ (22,920 ) $ (22,920 ) Preferred stock dividends (42 ) (42 ) (39 ) (39 ) Earnings from continuing operations attributable to (1,325 ) (1,325 ) (22,959 ) (22,959 ) Earnings (loss) from discontinued operations (8,140 ) (8,140 ) 144 144 Net earnings (loss) attributable to GE common $ (9,465 ) $ (9,465 ) $ (22,812 ) $ (22,812 ) Shares of GE common stock outstanding 8,730 8,730 8,694 8,694 Employee compensation-related shares (including stock options) — — — — Total average equivalent shares 8,730 8,730 8,694 8,694 Earnings per share from continuing operations $ (0.15 ) $ (0.15 ) $ (2.64 ) $ (2.64 ) Earnings (loss) per share from discontinued operations (0.93 ) (0.93 ) 0.02 0.02 Net earnings (loss) per share (1.08 ) (1.08 ) (2.62 ) (2.62 ) Potentially dilutive securities(a) 453 424 Nine months ended September 30 2019 2018 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Earnings from continuing operations for per-share calculation $ (438 ) $ (438 ) $ (21,694 ) $ (21,694 ) Preferred stock dividends (270 ) (270 ) (260 ) (260 ) Earnings from continuing operations attributable to $ (708 ) $ (708 ) $ (21,954 ) $ (21,955 ) Earnings (loss) from discontinued operations (5,270 ) (5,270 ) (1,437 ) (1,437 ) Net earnings attributable to GE common $ (5,977 ) $ (5,977 ) $ (23,383 ) $ (23,383 ) Shares of GE common stock outstanding 8,721 8,721 8,689 8,689 Employee compensation-related shares (including stock options) — — — — Total average equivalent shares 8,721 8,721 8,689 8,689 Earnings from continuing operations $ (0.08 ) $ (0.08 ) $ (2.53 ) $ (2.53 ) Loss from discontinued operations (0.60 ) (0.60 ) (0.17 ) (0.17 ) Net earnings (0.69 ) (0.69 ) (2.69 ) (2.69 ) Potentially dilutive securities(a) 462 410 (a) Outstanding stock awards not included in the computation of diluted earnings per share because their effect was antidilutive. Our unvested restricted stock unit awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities, and, therefore, are included in the computation of earnings per share pursuant to the two-class method. For the three and nine months ended September 30, 2019 and 2018, as a result of excess dividends in respect to the current period earnings, losses were not allocated to the participating securities. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | NOTE 17. FINANCIAL INSTRUMENTS The following table provides information about assets and liabilities not carried at fair value and excludes finance leases, equity securities without readily determinable fair value and non-financial assets and liabilities. Substantially all of these assets are considered to be Level 3 and the vast majority of our liabilities’ fair value are considered Level 2. September 30, 2019 December 31, 2018 (In millions) Carrying Estimated Carrying Estimated Assets Loans and other receivables $ 4,540 $ 4,638 $ 8,811 $ 8,829 Liabilities Borrowings (Note 11) 93,244 98,246 103,599 100,492 Investment contracts (Note 12) 2,239 2,653 2,388 2,630 Unlike the carrying amount, estimated fair value of borrowings included $ 1,017 million and $ 1,324 million of accrued interest at September 30, 2019 and December 31, 2018 , respectively, and excluded the impact of derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at September 30, 2019 and December 31, 2018 would be reduced by $ 1,710 million and $ 1,300 million, respectively. DERIVATIVES AND HEDGING. Our policy requires that derivatives are used solely for managing risks and not for speculative purposes. Total gross notional was $96,690 million ( $58,671 million in GE Capital and $38,019 million in GE) and $117,104 million ( $79,082 million in GE Capital and $38,022 million in GE) at September 30, 2019 and December 31, 2018, respectively. GE Capital notional relates primarily to managing interest rate and currency risk between financial assets and liabilities, and GE notional relates primarily to managing currency risk. FAIR VALUE OF DERIVATIVES September 30, 2019 December 31, 2018 (In millions) Gross Notional All other assets All other liabilities Gross Notional All other assets All other liabilities Interest rate contracts $ 23,819 $ 1,904 $ 11 $ 22,904 $ 1,335 $ 23 Currency exchange contracts 6,661 89 98 7,854 175 114 Derivatives accounted for as hedges $ 30,480 $ 1,993 $ 109 $ 30,758 $ 1,511 $ 138 Interest rate contracts $ 3,413 $ 28 $ 3 $ 6,198 $ 28 $ 2 Currency exchange contracts 61,050 543 953 77,544 653 1,472 Other contracts 1,746 67 82 2,604 13 209 Derivatives not accounted for as hedges $ 66,210 $ 639 $ 1,037 $ 86,346 $ 695 $ 1,682 Gross derivatives $ 96,690 $ 2,632 $ 1,146 $ 117,104 $ 2,205 $ 1,820 Netting and credit adjustments $ (674 ) $ (678 ) $ (959 ) $ (967 ) Cash collateral adjustments (1,226 ) (202 ) (1,042 ) (267 ) Net derivatives recognized in statement of financial position $ 732 $ 266 $ 205 $ 586 Net accrued interest $ 152 $ 4 $ 205 $ 1 Securities held as collateral (567 ) — (235 ) — Net amount $ 317 $ 270 $ 174 $ 587 Fair value of derivatives in our consolidated Statement of Financial Position excluded accrued interest. Cash collateral adjustments excluded excess collateral received and posted of $51 million and $786 million at September 30, 2019, respectively, and $3 million and $439 million at December 31, 2018, respectively. Securities held as collateral excluded excess collateral received of $18 million and zero at September 30, 2019 and December 31, 2018, respectively. FAIR VALUE HEDGES. We use derivatives to hedge the effects of interest rate and currency exchange rate changes on our borrowings. At September 30, 2019, the cumulative amount of hedging adjustments of $5,118 million (including $2,484 million on discontinued hedging relationships) was included in the carrying amount of the hedged liability of $57,017 million . At September 30, 2018 , the cumulative amount of hedging adjustments of $2,847 million (including $2,844 million on discontinued hedging relationships) was included in the carrying amount of the hedged liability of $61,292 million . The cumulative amount of hedging adjustments was primarily recorded in long-term borrowings. CASH FLOW HEDGES. Changes in the fair value of cash flow hedges are recorded in Accumulated Other Comprehensive Income (AOCI) and recorded in earnings in the period in which the hedged transaction occurs. The gain (loss) recognized in AOCI was $(21) million and $(5) million for the three months ended September 30, 2019 and 2018, respectively, and $(24) million and $(25) million for the nine months ended September 30, 2019 and 2018, respectively. The gain (loss) reclassified from AOCI to earnings was $(34) million and $(1) million for the three months ended September 30, 2019 and 2018, respectively, and $(63) million and $(9) million for the nine months ended September 30, 2019 and 2018, respectively. These amounts were primarily related to currency exchange and interest rate contracts. The total amount in AOCI related to cash flow hedges of forecasted transactions was a $64 million gain at September 30, 2019 . We expect to reclassify $58 million of loss to earnings in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions. For the three months and nine months ended September 30, 2019 and 2018, 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, 2019 and 2018, the maximum term of derivative instruments that hedge forecasted transactions was 13 years and 14 years , respectively. NET INVESTMENT HEDGES. For these hedges, the portion of the fair value changes of the derivatives or debt instruments that relates to changes in spot currency exchange rates is recorded in a separate component of AOCI. The portion of the fair value changes of the derivatives related to differences between spot and forward rates is recorded in earnings each period. The amounts recorded in AOCI affect earnings if the hedged investment is sold, substantially liquidated, or control is lost. The total gain (loss) recognized in AOCI on hedging instruments for the three months ended September 30, 2019 and 2018 was $213 million and $(62) million , respectively, comprising $32 million and $18 million on currency exchange contracts and $181 million and $(79) million on foreign currency debt, respectively. The total gain (loss) recognized in AOCI on hedging instruments for the nine months ended September 30, 2019 and 2018 was $231 million and $144 million , respectively, comprising $7 million and $100 million on currency exchange contracts and $225 million and $43 million on foreign currency debt, respectively. The total gain (loss) excluded from assessment and recognized in earnings was $6 million and $6 million for the three months ended September 30, 2019 and 2018, respectively. The total gain (loss) excluded from assessment and recognized in earnings was $22 million and $14 million for the nine months ended September 30, 2019 and 2018. The carrying value of foreign currency debt designated as net investment hedges was $9,119 million and $12,894 million at September 30, 2019 and 2018, respectively. The total reclassified from AOCI into earnings was $338 million and $(7) million for the three months ended September 30, 2019 and 2018, respectively. The total reclassified from AOCI into earnings was $344 million and $(7) million for the nine months ended September 30, 2019 and 2018, 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. For derivatives not designated as hedging instruments, substantially all of the gain or loss recognized in earnings is offset by either the current period change in value of underlying exposures which is recorded in earnings in the current period or a future period when the recording of the exposures occur . The table below presents the effect of our derivative financial instruments in the consolidated Statement of Earnings: Three months ended September 30, 2019 Three months ended September 30, 2018 (In millions) Revenues Cost of sales Interest Expense SG&A Other Income Revenues Cost of sales Interest Expense SG&A Other Income Total amounts presented in the consolidated Statement of Earnings $ 23,360 $ 17,328 $ 1,279 $ 3,293 $ 158 $ 23,392 $ 17,847 $ 1,155 $ 4,100 $ 279 Total effect of cash flow hedges $ (24 ) $ (1 ) $ (8 ) $ (2 ) $ — $ 8 $ 1 $ (10 ) $ — $ — Hedged items $ (1,000 ) $ 333 Derivatives designated as hedging instruments 1,011 (362 ) Total effect of fair value hedges $ 10 $ (29 ) Interest rate contracts $ — $ — $ — $ — $ — $ (11 ) $ — $ — $ — $ — Currency exchange contracts (108 ) (8 ) (73 ) 60 (28 ) (415 ) (240 ) — — (10 ) Other (1 ) — — — 9 — — 38 — (22 ) Total effect of derivatives not designated as hedges $ (109 ) $ (8 ) $ (74 ) $ 60 $ (18 ) $ (426 ) $ (240 ) $ 38 $ — $ (32 ) Nine months ended September 30, 2019 Nine months ended September 30, 2018 (In millions) Revenues Cost of sales Interest Expense SG&A Other Income Revenues Cost of sales Interest Expense SG&A Other Income Total amounts presented in the consolidated Statement of Earnings $ 68,976 $ 50,949 $ 3,272 $ 10,120 $ 1,170 $ 70,513 $ 52,244 $ 3,585 $ 11,013 $ 1,388 Total effect of cash flow hedges $ (18 ) $ (14 ) $ (27 ) $ (3 ) $ — $ 4 $ 17 $ (30 ) $ — $ — Hedged items $ (2,186 ) $ 1,200 Derivatives designated as hedging instruments 2,172 (1,285 ) Total effect of fair value hedges $ (14 ) $ (85 ) Interest rate contracts $ (36 ) $ — $ — $ — $ — $ (46 ) $ — $ — $ — $ — Currency exchange contracts (25 ) (29 ) (212 ) (2 ) (52 ) (921 ) (484 ) — — (6 ) Other (1 ) — 123 — 10 (1 ) — 27 — (2 ) Total effect of derivatives not designated as hedges $ (62 ) $ (29 ) $ (89 ) $ (2 ) $ (42 ) $ (967 ) $ (484 ) $ 27 $ — $ (8 ) 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. Our exposures to counterparties (including accrued interest), net of collateral we held, was $227 million and $95 million at September 30, 2019 and December 31, 2018, respectively. Counterparties' exposures to our derivative liability (including accrued interest), net of collateral posted by us, was $250 million and $571 million at September 30, 2019 and December 31, 2018, respectively. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2019 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 18. VARIABLE INTEREST ENTITIES In addition to the three VIEs detailed in Note 4, we have other consolidated VIEs with assets of $1,539 million and $2,321 million , and liabilities of $1,007 million and $1,611 million at September 30 2019 and December 31, 2018, respectively. These entities were created to help our customers facilitate or finance the purchase of GE goods and services. These entities have no features that could expose us to losses that would significantly exceed the difference between the consolidated assets and liabilities. Substantially all the assets of our consolidated VIEs at September 30, 2019 can only be used to settle the liabilities of those VIEs. Our investments in unconsolidated VIEs were $1,859 million and $2,346 million at September 30, 2019 and December 31, 2018, respectively. These investments are primarily owned by GE Capital businesses, $837 million and $1,670 million of which were owned by EFS and $525 million and zero of which were owned by our run-off insurance operations at September 30, 2019 and December 31, 2018, respectively. The increase in investments in unconsolidated VIEs in our run-off insurance operations reflects implementation of our revised reinvestment plan which incorporates the introduction of strategic initiatives to invest in higher-yielding asset classes. Obligations to make additional investments in these entities total $579 million , of which $483 million |
COMMITMENTS, GUARANTEES, PRODUC
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES | 9 Months Ended |
Sep. 30, 2019 | |
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 GECAS business within the Capital segment has placed multiple-year orders for various Boeing, Airbus and other aircraft manufacturers with list prices approximating $ 33,153 million (including 369 new aircraft with estimated delivery dates of 6% in 2019, 18% in 2020 and 76% in 2021 through 2025) and secondary orders with airlines for used aircraft approximating $ 2,317 million (including 57 used aircraft with estimated delivery dates of 28% in 2019, 47% in 2020 and 25% in 2021 through 2022) at September 30, 2019 . When we purchase aircraft, it is at a contractual price, which is usually less than the aircraft manufacturer’s list price and excludes any pre-delivery payments made in advance. As of September 30, 2019 , we have made $3,064 million of pre-delivery payments to aircraft manufacturers. In addition to our obligation to make investments in unconsolidated VIEs described in Note 18, GE Capital had total investment commitments of $2,614 million at September 30, 2019, that primarily comprise project financing investments in thermal and wind energy projects of $1,395 million and investment commitments related to our run-off insurance operations of $1,189 million . As of September 30, 2019 , in our Aviation segment, we have committed to provide financing assistance of $ 2,318 million for future customer acquisitions of aircraft equipped with our engines. GUARANTEES. At September 30, 2019 , we were committed under the following guarantee arrangements beyond those provided on behalf of VIEs. See Note 18 for further information. Credit Support. At September 30, 2019 , we have provided $ 1,637 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. The liability for such credit support was $ 40 million at September 30, 2019 . Indemnification Agreements – Continuing Operations. At September 30, 2019 , we have $ 1,654 million of other indemnification commitments, including representations and warranties in sales of businesses or assets, for which we recorded a liability of $ 139 million. Indemnification Agreements – Discontinued Operations. At September 30, 2019 , we provided specific indemnities to buyers of GE Capital’s businesses and assets that, in the aggregate, represent a maximum potential claim of $1,136 million with related reserves of $148 million . 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. 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 . (In millions) 2019 2018 Balance at January 1 $ 2,193 $ 2,103 Current-year provisions 527 722 Expenditures (525 ) (597 ) Other changes 34 7 Balance as of September 30 $ 2,229 $ 2,236 LEGAL MATTERS. In the normal course of our business, we are involved from time to time in various arbitrations, class actions, commercial litigation, investigations and other legal, regulatory or governmental actions, including the significant matters described below. In many proceedings, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the size or range of the possible loss, and accruals for legal matters are not recorded until a loss for a particular matter is considered probable and reasonably estimable. Given the nature of legal matters and the complexities involved, it is often difficult to predict and determine a meaningful estimate of loss or range of loss until we know, among other factors, the particular claims involved, the likelihood of success of our defenses to those claims, the damages or other relief sought, how discovery or other procedural considerations will affect the outcome, the settlement posture of other parties and other factors that may have a material effect on the outcome. Moreover, it is not uncommon for legal matters to be resolved over many years, during which time relevant developments and new information must be continuously evaluated. 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). These claims will be resolved as part of the Chapter 11 bankruptcy case described below. In January 2019, we announced an agreement in principle with the United States to settle the investigation by the U.S. Department of Justice (DOJ) regarding potential violations of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) by WMC and GE Capital, and in April 2019, the parties entered into a definitive settlement agreement. Under the agreement, which concludes this investigation, GE, without admitting liability or wrongdoing, paid the United States a civil penalty of $1,500 million . In April 2019, WMC commenced a case under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. WMC has filed a Chapter 11 Plan seeking an efficient and orderly resolution of all claims, demands, rights, and/or liabilities to be asserted by or against WMC as the debtor. GE Capital is providing up to $25 million of debtor-in-possession financing to fund administrative expenses associated with the Chapter 11 proceeding. In August 2019, we reached a settlement with WMC to resolve potential claims that WMC may have against certain GE entities. This settlement is incorporated into, and will be approved as part of, the Chapter 11 plan. Beginning in the second quarter of 2019, as a result of WMC commencing the Chapter 11 case, we no longer consolidate WMC’s financial results or position on the books and records of GE Capital. We recognized $67 million of pre-tax charges during the second quarter of 2019, reflecting an updated settlement estimate in the context of bankruptcy for litigation that was pending when the Chapter 11 case commenced, as well as additional claims that have been brought in bankruptcy. In total, we have recognized $211 million of liabilities as of September 30, 2019, associated with amounts we anticipate paying to WMC in connection with the settlement of potential claims that WMC may have against us, as discussed above. 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, 2019 , this reserve balance was $859 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, and at this time we are unable to develop a meaningful estimate of the range of reasonably possible additional losses beyond the amount of this reserve. 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 and related 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, political and social influences within each jurisdiction, and tax consequences of any settlements or previous deductions, among other considerations. Actual losses arising from claims in these and related matters could exceed the amount provided. ENVIRONMENTAL, HEALTH AND SAFETY 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, as well as litigation involving asbestos and other environmental, health and safety-related claims. 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 exposure will exceed amounts accrued. However, due to uncertainties about the status of laws, regulations, technology and information related to individual matters, such amounts are not reasonably estimable. For further information, see our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 . |
CASH FLOWS INFORMATION
CASH FLOWS INFORMATION | 9 Months Ended |
Sep. 30, 2019 | |
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 our consolidated Statement of Cash Flows are net of cash transferred and included certain deal-related costs. Amounts reported in the “Net cash from (payments for) principal businesses purchased” line are net of cash acquired and included certain deal-related costs and debt assumed and immediately repaid in acquisitions. GE Nine months ended September 30 (In millions) 2019 2018 Increase (decrease) in employee benefit liabilities $ (373 ) $ 41 Other gains on investing activities 232 (434 ) Restructuring and other charges(a) 763 1,651 Restructuring and other cash expenditures (854 ) (975 ) Increase (decrease) in equipment project accruals (76 ) (785 ) Baker Hughes Class B dividends received 282 399 Other(b) 580 (434 ) All other operating activities $ 554 $ (537 ) Derivative settlements, net $ 9 $ (490 ) Investments in intangible assets, net (17 ) (472 ) Sales of retained ownership interests in Wabtec 3,383 — Other(c) 29 138 All other investing activities $ 3,404 $ (824 ) Disposition of Baker Hughes noncontrolling interests $ — $ 638 Acquisition of noncontrolling interests (28 ) (240 ) Other(d) (320 ) 34 All other financing activities $ (348 ) $ 432 (a) Excludes non-cash adjustments reflected as "Depreciation and amortization of property, plant and equipment" or "Amortization of intangible assets" in our consolidated Statement of Cash Flows. (b) Included other adjustments to net income, such as write-downs of assets and the impacts of acquisition accounting and changes in other assets and other liabilities classified as operating activities, such as the timing of payments of customer allowances. (c) Other included net activity related to settlements between our continuing operations and discontinued operations. (d) Other included debt tender expenditures of $(244) million |
INTERCOMPANY TRANSACTIONS
INTERCOMPANY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2019 | |
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 GE and GE Capital columns of our financial statements, which we believe provide useful supplemental information to our consolidated financial statements. These transactions are eliminated in consolidation and may include, but are not limited to, the following: GE Capital working capital services to GE, including current receivables and supply chain finance programs; GE Capital finance transactions, including related GE guarantees to GE Capital; GE Capital financing of GE long-term receivables; and aircraft engines, power equipment and renewable energy 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: e xpenses 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; s ettlements of tax liabilities; and v arious 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. Nine months ended September 30 (In millions) 2019 2018 Combined GE and GE Capital cash from (used for) operating activities - continuing operations $ 1,311 $ (3,962 ) GE current receivables sold to GE Capital 508 (161 ) GE long-term receivables sold to GE Capital 340 851 Supply chain finance programs 1,062 152 Other reclassifications and eliminations 201 (1,214 ) Total cash from (used for) operating activities - continuing operations $ 3,423 $ (4,334 ) Combined GE and GE Capital cash from (used for) investing activities - continuing operations $ 9,680 $ 7,209 GE current receivables sold to GE Capital (1,167 ) (1,016 ) GE long-term receivables sold to GE Capital (340 ) (851 ) GE Capital long-term loans to GE (480 ) 6,479 Supply chain finance programs (1,062 ) (152 ) Capital contribution from GE to GE Capital 1,500 — Other reclassifications and eliminations (1,043 ) 460 Total cash from (used for) investing activities - continuing operations $ 7,087 $ 12,129 Combined GE and GE Capital cash from (used for) financing activities - continuing operations $ (14,201 ) $ (17,677 ) GE current receivables sold to GE Capital 659 1,177 GE Capital long-term loans to GE 480 (6,479 ) Capital contribution from GE to GE Capital (1,500 ) — Other reclassifications and eliminations 842 755 Total cash from (used for) financing activities - continuing operations $ (13,721 ) $ (22,224 ) GE current receivables sold to GE Capital excludes $268 million and $3,905 million related to cash payments received on the Receivable facility deferred purchase price in the nine months ended September 30, 2019 and 2018 respectively, which are reflected as "Cash from investing activities" in the GE Capital and the GE columns of our consolidated Statement of Cash Flows. Sales of current and long-term receivables from GE to GE Capital are classified as "Cash from operating activities" in the GE column of our Statement of Cash Flows. See Note 4 for further information. |
GUARANTOR FINANCIAL INFORMATION
GUARANTOR FINANCIAL INFORMATION | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
GUARANTOR FINANCIAL INFORMATION | NOTE 22. GUARANTOR FINANCIAL INFORMATION GE Capital International Funding Company Unlimited Company (the Issuer) previously issued senior unsecured registered notes that are fully and unconditionally, jointly and severally guaranteed by both the Company and GE Capital International Holdings Limited (each a Guarantor, and together, the Guarantors). The Company is required to provide certain financial information regarding the Issuer and the Guarantors of the registered securities, specifically Condensed Consolidating Statements of Earnings and Comprehensive Income, Condensed Consolidating Statements of Financial Position and Condensed Consolidating Statements of Cash Flows 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 that issued the guaranteed notes 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, 2019 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Sales of goods and services $ 7,169 $ — $ — $ 31,413 $ (17,077 ) $ 21,504 GE Capital revenues from services — 245 (18 ) 2,107 (477 ) 1,856 Total revenues 7,169 245 (18 ) 33,519 (17,554 ) 23,360 Interest and other financial charges 634 272 356 148 (132 ) 1,279 Other costs and expenses 4,945 — (38 ) 40,629 (22,048 ) 23,488 Total costs and expenses 5,580 272 318 40,777 (22,180 ) 24,767 Other income (loss) 1,320 — — 4,458 (5,619 ) 158 Equity in earnings (loss) of affiliates (4,476 ) — (37 ) 31,207 (26,695 ) — Earnings (loss) from continuing operations before income taxes (1,567 ) (27 ) (373 ) 28,406 (27,688 ) (1,249 ) Benefit (provision) for income taxes (386 ) 3 — 339 3 (41 ) Earnings (loss) from continuing operations (1,953 ) (24 ) (373 ) 28,745 (27,685 ) (1,290 ) Earnings (loss) from discontinued operations, net of taxes 683 — 40 — (8,817 ) (8,093 ) Net earnings (loss) (1,270 ) (24 ) (333 ) 28,745 (36,502 ) (9,383 ) Less net earnings (loss) attributable to noncontrolling interests — — — (7 ) 46 40 Net earnings (loss) attributable to the Company (1,270 ) (24 ) (333 ) 28,752 (36,548 ) (9,423 ) Other comprehensive income (loss) 1,491 — (1 ) 1,313 (1,312 ) 1,491 Comprehensive income (loss) attributable to the Company $ 221 $ (24 ) $ (334 ) $ 30,064 $ (37,860 ) $ (7,931 ) 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 Sales of goods and services $ 7,301 $ — $ — $ 30,387 $ (16,407 ) $ 21,282 GE Capital revenues from services — 237 300 2,508 (936 ) 2,110 Total revenues 7,301 237 300 32,895 (17,342 ) 23,392 Interest and other financial charges 451 236 725 553 (810 ) 1,155 Other costs and expenses 11,780 — — 25,345 8,352 45,478 Total costs and expenses 12,231 236 725 25,898 7,542 46,633 Other income (loss) 1,193 — — 1,217 (2,132 ) 279 Equity in earnings (loss) of affiliates (11,235 ) — 705 28,378 (17,849 ) — Earnings (loss) from continuing operations before income taxes (14,971 ) 2 281 36,593 (44,866 ) (22,962 ) Benefit (provision) for income taxes 224 — — (536 ) 260 (52 ) Earnings (loss) from continuing operations (14,748 ) 1 281 36,057 (44,606 ) (23,014 ) Earnings (loss) from discontinued operations, net of taxes 39 — 18 — 98 155 Net earnings (loss) (14,708 ) 1 298 36,057 (44,508 ) (22,859 ) Less net earnings (loss) attributable to noncontrolling interests — — — (81 ) (9 ) (90 ) Net earnings (loss) attributable to the Company (14,708 ) 1 298 36,138 (44,498 ) (22,769 ) Other comprehensive income (loss) 203 — 12 (751 ) 739 203 Comprehensive income (loss) attributable to the Company $ (14,505 ) $ 1 $ 310 $ 35,387 $ (43,759 ) $ (22,566 ) CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Sales of goods and services $ 19,993 $ — $ — $ 95,009 $ (51,871 ) $ 63,132 GE Capital revenues from services — 724 68 6,738 (1,685 ) 5,845 Total revenues 19,993 724 68 101,747 (53,556 ) 68,976 Interest and other financial charges 1,278 744 1,068 899 (716 ) 3,272 Other costs and expenses 18,377 — — 85,378 (36,458 ) 67,296 Total costs and expenses 19,654 744 1,068 86,276 (37,174 ) 70,568 Other income (loss) (1,894 ) — — 12,588 (9,524 ) 1,170 Equity in earnings (loss) of affiliates (4,430 ) — 808 58,383 (54,761 ) — Earnings (loss) from continuing operations before income taxes (5,985 ) (20 ) (192 ) 86,442 (80,667 ) (422 ) Benefit (provision) for income taxes (673 ) 3 — 46 624 1 Earnings (loss) from continuing operations (6,658 ) (18 ) (192 ) 86,489 (80,043 ) (421 ) Earnings (loss) from discontinued operations, net of taxes 951 — 42 — (6,205 ) (5,212 ) Net earnings (loss) (5,707 ) (18 ) (150 ) 86,489 (86,248 ) (5,634 ) Less net earnings (loss) attributable to noncontrolling interests — — — (3 ) 76 73 Net earnings (loss) attributable to the Company (5,707 ) (18 ) (150 ) 86,492 (86,324 ) (5,707 ) Other comprehensive income (loss) 3,053 — (1,105 ) 870 235 3,053 Comprehensive income (loss) attributable to the Company $ (2,654 ) $ (18 ) $ (1,255 ) $ 87,362 $ (86,089 ) $ (2,654 ) 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 Sales of goods and services $ 21,127 $ — $ — $ 94,872 $ (51,395 ) $ 64,604 GE Capital revenues from services — 678 852 5,390 (1,011 ) 5,909 Total revenues 21,127 678 852 100,263 (52,406 ) 70,513 Interest and other financial charges 1,281 671 1,889 2,041 (2,296 ) 3,585 Other costs and expenses 32,198 — — 89,228 (31,793 ) 89,634 Total costs and expenses 33,479 672 1,889 91,269 (34,090 ) 93,219 Other income (loss) 2,450 — — 3,883 (4,945 ) 1,388 Equity in earnings (loss) of affiliates (11,761 ) — 1,199 28,378 (17,816 ) — Earnings (loss) from continuing operations before income taxes (21,663 ) 7 161 41,255 (41,078 ) (21,318 ) Benefit (provision) for income taxes 47 (1 ) — (1,098 ) 592 (460 ) Earnings (loss) from continuing operations (21,616 ) 6 161 40,157 (40,486 ) (21,777 ) Earnings (loss) from discontinued operations, net of taxes (1,634 ) — (63 ) 1 170 (1,526 ) Net earnings (loss) (23,250 ) 6 98 40,158 (40,316 ) (23,304 ) Less net earnings (loss) attributable to noncontrolling interests (134 ) — — (202 ) 148 (188 ) Net earnings (loss) attributable to the Company (23,116 ) 6 98 40,360 (40,464 ) (23,116 ) Other comprehensive income (loss) 1,174 — (42 ) (2,381 ) 2,424 1,174 Comprehensive income (loss) attributable to the Company $ (21,941 ) $ 6 $ 56 $ 37,978 $ (38,040 ) $ (21,941 ) CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION SEPTEMBER 30, 2019 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash, cash equivalents and restricted cash $ 10,001 $ — $ — $ 21,215 $ (3,406 ) $ 27,810 Receivables - net 41,269 17,841 34 61,998 (94,416 ) 26,726 Investment in subsidiaries 143,127 — 40,179 699,149 (882,455 ) — All other assets 31,724 480 — 316,579 (140,309 ) 208,474 Total assets $ 226,120 $ 18,322 $ 40,212 $ 1,098,942 $ (1,120,586 ) $ 263,009 Short-term borrowings $ 130,045 $ — $ 1,552 $ 7,303 $ (121,854 ) $ 17,046 Long-term and non-recourse borrowings 40,901 17,019 25,511 24,676 (31,909 ) 76,199 All other liabilities 65,166 275 219 136,051 (61,100 ) 140,612 Total liabilities 236,112 17,294 27,282 168,031 (214,863 ) 233,856 Total liabilities and equity $ 226,120 $ 18,322 $ 40,212 $ 1,098,942 $ (1,120,586 ) $ 263,009 CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2018 (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash, cash equivalents and restricted cash $ 9,561 $ — $ — $ 25,975 $ (4,412 ) $ 31,124 Receivables - net 27,868 17,467 2,792 56,256 (74,895 ) 29,488 Investment in subsidiaries 175,071 — 45,832 733,535 (954,437 ) — All other assets 19,165 12 — 298,493 (67,210 ) 250,460 Total assets $ 231,665 $ 17,479 $ 48,623 $ 1,114,260 $ (1,100,954 ) $ 311,072 Short-term borrowings $ 143,481 $ — $ 9,854 $ 9,653 $ (150,212 ) $ 12,776 Long-term and non-recourse borrowings 50,705 16,115 24,341 47,014 (47,352 ) 90,824 All other liabilities 45,722 336 245 133,203 (23,514 ) 155,992 Total liabilities 239,908 16,452 34,439 189,870 (221,078 ) 259,591 Total liabilities and equity $ 231,665 $ 17,479 $ 48,623 $ 1,114,260 $ (1,100,954 ) $ 311,072 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2019 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash from (used for) operating activities(a) $ 9,148 $ 400 $ (1,539 ) $ 6,556 $ (12,531 ) $ 2,033 Cash from (used for) investing activities $ 34,181 $ (400 ) $ 6,072 $ 108,843 $ (143,646 ) $ 5,050 Cash from (used for) financing activities $ (42,889 ) $ — $ (4,532 ) $ (120,127 ) $ 153,460 $ (14,089 ) Effect of currency exchange rate changes on cash, cash equivalents and restricted cash — — — (131 ) — (131 ) Increase (decrease) in cash, cash equivalents and restricted cash 440 — — (4,859 ) (2,717 ) (7,136 ) Cash, cash equivalents and restricted cash at beginning of year 9,561 — — 26,676 (689 ) 35,548 Cash, cash equivalents and restricted cash 10,001 — — 21,817 (3,406 ) 28,412 Less cash, cash equivalents and restricted cash of discontinued operations at September 30 — — — 602 — 602 Cash, cash equivalents and restricted cash of continuing operations at September 30 $ 10,001 $ — $ — $ 21,215 $ (3,406 ) $ 27,810 (a) Parent Company Guarantor cash flows included cash from (used for) operating activities of discontinued operations of $(2,382) 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 from (used for) operating activities(a) $ 11,267 $ (118 ) $ (381 ) $ 24,135 $ (38,492 ) $ (3,589 ) Cash from (used for) investing activities $ (625 ) $ 189 $ (1,052 ) $ (18,293 ) $ 31,417 $ 11,636 Cash from (used for) financing activities $ (11,824 ) $ (70 ) $ 1,445 $ (16,845 ) $ 2,328 $ (24,967 ) 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 (11,443 ) (4,747 ) (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 2,289 — 15 30,550 (5,490 ) 27,364 Less cash, cash equivalents and restricted cash of discontinued operations at September 30 — — — 5,310 — 5,310 Cash, cash equivalents and restricted cash of continuing operations at September 30 $ 2,289 $ — $ 15 $ 25,240 $ (5,490 ) $ 22,054 (a) Parent Company Guarantor cash flows included cash from (used for) operating activities of discontinued operations of $185 million . |
SEGMENT OPERATIONS
SEGMENT OPERATIONS | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT OPERATIONS | SEGMENT OPERATIONS. Segment revenues include sales of products and services by the segment. Industrial segment profit is determined based on performance measures used by our Chief Operating Decision Maker (CODM), who is our 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, certain gains and losses from acquisitions or dispositions, and certain litigation settlements. See the Corporate Items and Eliminations section for additional information about costs excluded from segment profit. Segment profit excludes results reported as discontinued operations and 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. Interest and other financial charges, income taxes and non-operating benefit costs 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 those related to 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 REPORTABLE SEGMENTS Three months ended September 30 Nine months ended September 30 (Dollars in millions) 2019 2018 V% 2019 2018 V% Power $ 3,926 $ 4,559 (14) % $ 13,224 $ 16,768 (21) % Renewable Energy 4,425 3,920 13 % 10,590 9,642 10 % Aviation 8,109 7,480 8 % 23,940 22,111 8 % Healthcare 4,923 4,707 5 % 14,540 14,387 1 % Total industrial segment revenues 21,383 20,665 3 % 62,293 62,908 (1) % Capital 2,097 2,473 (15) % 6,645 7,075 (6) % Total segment revenues 23,480 23,138 1 % 68,938 69,982 (1) % Corporate items and eliminations (120 ) 254 U 39 531 (93) % Consolidated revenues $ 23,360 $ 23,392 — % $ 68,976 $ 70,513 (2) % Power $ (144 ) $ (676 ) 79 % $ 84 $ (22 ) F Renewable Energy (98 ) 116 U (469 ) 312 U Aviation 1,718 1,665 3 % 4,764 4,743 — % Healthcare 974 861 13 % 2,714 2,522 8 % Total industrial segment profit (loss) 2,450 1,967 25 % 7,092 7,555 (6) % Capital (645 ) 19 U (599 ) (403 ) (49 )% Total segment profit (loss) 1,806 1,986 (9) % 6,493 7,151 (9) % Corporate items and eliminations (808 ) (1,523 ) 47 % (2,013 ) (2,596 ) 22 % GE goodwill impairments (740 ) (21,973 ) 97 % (1,484 ) (21,973 ) 93 % GE interest and other financial charges (791 ) (590 ) (34) % (1,693 ) (1,773 ) 5 % GE non-operating benefit costs (562 ) (760 ) 26 % (1,684 ) (2,132 ) 21 % GE benefit (provision) for income taxes (229 ) (95 ) U (327 ) (624 ) 48 % Earnings (loss) from continuing operations attributable to GE common shareowners (1,325 ) (22,956 ) 94 % (707 ) (21,947 ) 97 % Earnings (loss) from discontinued operations, net of taxes (8,093 ) 155 U (5,212 ) (1,526 ) U Less net earnings attributable to noncontrolling interests, discontinued operations 46 7 F 58 (97 ) F Earnings (loss) from discontinued operations, net of tax and noncontrolling interest (8,140 ) 148 U (5,270 ) (1,429 ) U Consolidated net earnings (loss) attributable to the GE common shareowners $ (9,465 ) $ (22,808 ) 59 % $ (5,977 ) $ (23,376 ) 74 % |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
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. As used in these financial statements, “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 represents the adding together of all affiliates of GE Capital with the effects of transactions among such affiliates eliminated; 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. 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. |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | Debt securities and money market instruments with original maturities of three months or less are included in cash, cash equivalents and restricted cash unless designated as available-for-sale and classified as investment securities. |
LEASE ACCOUNTING, LESSEE | At lease commencement, we record a lease liability and corresponding right-of-use (ROU) asset. Lease liabilities represent the present value of our future lease payments over the expected lease term which includes options to extend or terminate the lease when it is reasonably certain those options will be exercised. We have elected to include lease and non-lease components in determining our lease liability for all leased assets except our vehicle leases. Non-lease components are generally services that the lessor performs for the Company associated with the leased asset. For those leases with payments based on an index, the lease liability is determined using the index at lease commencement. Lease payments based on increases in the index subsequent to lease commencement are recognized as variable lease expense as they occur. The present value of our lease liability is determined using our incremental collateralized borrowing rate at lease inception. ROU assets represent our right to control the use of the leased asset during the lease and are recognized in an amount equal to the lease liability for leases with an initial term greater than 12 months. Over the lease term we use the effective interest rate method to account for the lease liability as lease payments are made and the ROU asset is amortized to earnings in a manner that results in straight-line expense recognition. |
LEASE ACCOUNTING, LESSOR | Equipment leased to others under operating leases are included in "Property, plant and equipment" and leases classified as finance leases are included in "Financing receivables" on our consolidated Statement of Financial Position. |
ACCOUNTING CHANGES | On January 1, 2019, we adopted ASU No. 2016-02, Leases . Upon adoption, we recorded a $315 million increase to retained earnings, primarily attributable to the release of deferred gains on sale-lease back transactions. Our ROU assets and lease liabilities for operating leases excluding discontinued operations at adoption were $ 3,272 million and $ 3,459 million, respectively. After the adoption date, cash collections of principal on financing leases, are classified as Cash from operating activities in our consolidated Statement of Cash Flows. Previously, such flows were classified as Cash from investing activities. On January 1, 2019, we adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The ASU requires certain changes to the presentation of hedge accounting in the financial statements and some new or modified disclosures. The ASU also simplifies the application of hedge accounting and expands the strategies that qualify for hedge accounting. Upon adoption, we recorded an increase to retained earnings and a decrease to borrowings of $52 million |
BUSINESSES HELD FOR SALE AND _2
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Financial Information for Assets and Liabilities of Businesses Held for Sale | As of September 30, 2019, we have closed the sale of substantially all of these assets in accordance with the plan. ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE (In millions) September 30, 2019 December 31, 2018 Current receivables $ 400 $ 184 Inventories 707 529 Financing receivables held for sale 3,849 — Property, plant, and equipment – net and Operating leases 906 423 Goodwill and Other intangible assets - net 6,285 884 Valuation allowance (508 ) (1,013 ) Deferred tax asset 819 — Other assets 376 622 Assets of businesses held for sale $ 12,832 $ 1,629 Accounts payable & Progress collections and deferred income $ 798 $ 428 Non-current compensation and benefits 360 152 Other liabilities 384 128 Liabilities of businesses held for sale $ 1,543 $ 708 |
Financial Information for Discontinued Operations | RESULTS OF DISCONTINUED OPERATIONS (In millions) Baker Hughes Transportation and Other GE Capital Total Three months ended September 30 2019 2018 2019 2018 2019 2018 2019 2018 Operations Sales of goods and services $ 4,478 $ 5,670 $ — $ 932 $ — $ — $ 4,478 $ 6,602 GE Capital revenues and other income (loss) — — — — 16 152 16 152 Cost of goods and services sold (3,686 ) (4,767 ) — (652 ) — — (3,686 ) (5,419 ) Other costs and expenses (618 ) (830 ) (16 ) (127 ) (53 ) (90 ) (686 ) (1,048 ) Earnings (loss) of discontinued operations before income taxes 175 73 (16 ) 152 (37 ) 61 121 287 Benefit (provision) for income taxes (50 ) (78 ) 6 (32 ) 29 (22 ) (14 ) (132 ) Earnings (loss) of discontinued operations, net of taxes(a) $ 125 $ (5 ) $ (9 ) $ 120 $ (8 ) $ 40 $ 107 $ 155 Disposal Gain (loss) on disposal before income taxes (8,667 ) — — — (10 ) — (8,677 ) — Benefit (provision) for income taxes 477 — — — — — 477 — Gain (loss) on disposal, net of taxes $ (8,190 ) $ — $ — $ — $ (10 ) $ — $ (8,201 ) $ — Earnings (loss) from discontinued operations, net of taxes $ (8,066 ) $ (5 ) $ (9 ) $ 120 $ (18 ) $ 40 $ (8,093 ) $ 155 (a) Earnings (loss) of discontinued operations attributable to the Company after income taxes was $61 million and $148 million for the three months ended September 30, 2019 and 2018 respectively. RESULTS OF DISCONTINUED OPERATIONS (In millions) Baker Hughes Transportation and Other GE Capital Total Nine months ended September 30 2019 2018 2019 2018 2019 2018 2019 2018 Operations Sales of goods and services $ 16,047 $ 16,609 $ 549 $ 2,746 $ — $ — $ 16,596 $ 19,355 GE Capital revenues and other income (loss) — — — — 7 (1,316 ) 7 (1,316 ) Cost of goods and services sold (13,317 ) (14,140 ) (478 ) (1,942 ) — — (13,795 ) (16,082 ) Other costs and expenses (2,386 ) (2,530 ) (22 ) (473 ) (142 ) (298 ) (2,550 ) (3,301 ) Earnings (loss) of discontinued operations before income taxes 345 (61 ) 49 331 (136 ) (1,614 ) $ 258 $ (1,343 ) Benefit (provision) for income taxes (165 ) (124 ) (13 ) (93 ) 356 32 178 (186 ) Earnings (loss) of discontinued operations, net of taxes(a) $ 179 $ (185 ) $ 36 $ 237 $ 220 $ (1,582 ) $ 436 $ (1,529 ) Disposal Gain (loss) on disposal before income taxes (8,667 ) — 3,471 — 36 4 $ (5,160 ) $ 4 Benefit (provision) for income taxes 477 — (963 ) — (2 ) (1 ) (488 ) (1 ) Gain (loss) on disposal, net of taxes $ (8,190 ) $ — $ 2,508 $ — $ 35 $ 3 $ (5,648 ) $ 3 Earnings (loss) from discontinued operations, net of taxes $ (8,011 ) $ (185 ) $ 2,544 $ 237 $ 255 $ (1,579 ) $ (5,212 ) $ (1,526 ) (a) Earnings (loss) of discontinued operations attributable to the Company after income taxes was $378 million and $(1,432) million for the nine months ended September 30, 2019 and 2018 respectively. ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS (In millions) September 30, 2019 December 31, 2018 Cash, cash equivalents and restricted cash $ 602 $ 4,424 Investment securities 207 522 Current receivables 81 6,258 Inventories — 5,419 Financing receivables held for sale (Polish mortgage portfolio) 2,542 2,745 Property, plant and equipment - net and Operating leases 139 7,139 Goodwill and intangible assets - net — 31,622 Deferred income taxes 312 1,174 All other assets 296 4,550 Assets of discontinued operations(a) $ 4,178 $ 63,853 Accounts payable and Progress collections and deferred income $ 32 $ 6,806 Operating lease liabilities 217 — Other GE current liabilities 51 2,002 All other liabilities 88 10,473 Liabilities of discontinued operations(b) $ 387 $ 19,281 (a) Assets of discontinued operations included $54,596 million and $4,573 million related to our Baker Hughes and Transportation businesses, respectively as of December 31, 2018. (b) Liabilities of discontinued operations included $15,535 million and $1,871 million related to our Baker Hughes and Transportation businesses, respectively as of December 31, 2018. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities | September 30, 2019 December 31, 2018 (In millions) Amortized Gross Gross Estimated Amortized Gross Gross Estimated Debt U.S. corporate $ 22,945 $ 4,728 $ (20 ) $ 27,653 $ 21,306 $ 2,257 $ (357 ) $ 23,206 Non-U.S. corporate 2,212 262 (1 ) 2,473 1,906 53 (76 ) 1,883 State and municipal 3,207 705 (19 ) 3,893 3,320 367 (54 ) 3,633 Mortgage and asset-backed 3,000 158 (3 ) 3,155 3,325 51 (54 ) 3,322 Government and agencies 1,420 155 — 1,575 1,314 62 (20 ) 1,357 Equity 9,476 — — 9,476 107 — — 107 Total $ 42,259 $ 6,008 $ (42 ) $ 48,225 $ 31,277 $ 2,792 $ (561 ) $ 33,508 |
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 $ 390 $ 396 After one year through five years 2,808 2,964 After five years through ten years 6,636 7,628 After ten years 19,950 24,606 |
CURRENT AND LONG-TERM RECEIVA_2
CURRENT AND LONG-TERM RECEIVABLES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Receivables | CURRENT RECEIVABLES Consolidated GE (In millions) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Customer receivables $ 12,225 $ 10,742 $ 8,444 $ 6,355 Sundry receivables 4,638 4,573 5,059 4,569 Allowance for losses (845 ) (670 ) (845 ) (662 ) Total current receivables $ 16,018 $ 14,645 $ 12,657 $ 10,262 Activity related to customer receivables sold by GE is as follows: Nine months ended September 30 (In millions) 2019 2018 GE Capital (a) Third Parties GE Capital (a) Third Parties Balance at January 1 $ 4,386 $ 7,880 $ 9,656 $ 5,710 GE sales to GE Capital 30,383 — 37,349 — GE sales to third parties — 3,002 — 3,417 GE Capital sales to third parties (20,505 ) 20,505 (22,212 ) 22,212 Collections and other (10,746 ) (25,004 ) (19,395 ) (24,431 ) Reclassification from long-term customer receivables 265 — 492 — Balance at September 30 $ 3,782 $ 6,382 $ 5,889 $ 6,907 (a) At September 30, 2019 and 2018, $ 866 million and $ 1,675 million , respectively, of the current receivables purchased and retained by GE Capital, had been sold by GE to GE Capital with recourse (i.e., GE retains all or some risk of default). The effect on GE CFOA of claims by GE Capital on receivables sold with recourse has been insignificant for the nine months ended September 30, 2019 and 2018. Consolidated GE (In millions) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Long-term customer receivables $ 1,181 $ 1,442 $ 653 $ 559 Long-term sundry receivables 1,545 1,180 1,743 1,519 Allowance for losses (110 ) (145 ) (110 ) (145 ) Total long-term receivables $ 2,616 $ 2,477 $ 2,285 $ 1,933 Nine months ended September 30 (In millions) 2019 2018 Customer receivables sold to receivables facilities $ 16,062 $ 17,115 Total cash purchase price for customer receivables 15,824 13,096 Cash collections re-invested to purchase customer receivables 13,286 11,518 Non-cash increases to deferred purchase price $ 168 $ 3,935 Cash payments received on deferred purchase price 268 3,905 Activity related to long-term customer receivables purchased by GE Capital is as follows: Nine months ended September 30 (In millions) 2019 2018 GE Capital(a) GE Capital(a) Balance at January 1 $ 883 $ 1,947 GE sales to GE Capital — 123 Sales, collections, accretion and other (90 ) (272 ) Reclassification to current customer receivables (265 ) (492 ) Balance at September 30 $ 528 $ 1,307 (a) At September 30, 2019 and 2018, $402 million and $797 million, respectively, of long-term customer receivables purchased and retained by GE Capital, had been sold by GE to GE Capital with recourse (i.e., GE retains all or some risk of default). The effect on GE CFOA of claims by GE Capital on receivables sold with recourse have been insignificant for the nine months ended September 30, 2019 and 2018. Consolidated GE Capital (In millions) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Loans, net of deferred income $ 1,251 $ 5,118 $ 5,639 $ 10,834 Investment in financing leases, net of deferred income 2,120 2,639 2,120 2,822 3,371 7,757 7,759 13,656 Allowance for losses (50 ) (58 ) (12 ) (28 ) Financing receivables – net $ 3,321 $ 7,699 $ 7,748 $ 13,628 |
FINANCING RECEIVABLES AND ALL_2
FINANCING RECEIVABLES AND ALLOWANCES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Financing Receivables, Net | CURRENT RECEIVABLES Consolidated GE (In millions) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Customer receivables $ 12,225 $ 10,742 $ 8,444 $ 6,355 Sundry receivables 4,638 4,573 5,059 4,569 Allowance for losses (845 ) (670 ) (845 ) (662 ) Total current receivables $ 16,018 $ 14,645 $ 12,657 $ 10,262 Activity related to customer receivables sold by GE is as follows: Nine months ended September 30 (In millions) 2019 2018 GE Capital (a) Third Parties GE Capital (a) Third Parties Balance at January 1 $ 4,386 $ 7,880 $ 9,656 $ 5,710 GE sales to GE Capital 30,383 — 37,349 — GE sales to third parties — 3,002 — 3,417 GE Capital sales to third parties (20,505 ) 20,505 (22,212 ) 22,212 Collections and other (10,746 ) (25,004 ) (19,395 ) (24,431 ) Reclassification from long-term customer receivables 265 — 492 — Balance at September 30 $ 3,782 $ 6,382 $ 5,889 $ 6,907 (a) At September 30, 2019 and 2018, $ 866 million and $ 1,675 million , respectively, of the current receivables purchased and retained by GE Capital, had been sold by GE to GE Capital with recourse (i.e., GE retains all or some risk of default). The effect on GE CFOA of claims by GE Capital on receivables sold with recourse has been insignificant for the nine months ended September 30, 2019 and 2018. Consolidated GE (In millions) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Long-term customer receivables $ 1,181 $ 1,442 $ 653 $ 559 Long-term sundry receivables 1,545 1,180 1,743 1,519 Allowance for losses (110 ) (145 ) (110 ) (145 ) Total long-term receivables $ 2,616 $ 2,477 $ 2,285 $ 1,933 Nine months ended September 30 (In millions) 2019 2018 Customer receivables sold to receivables facilities $ 16,062 $ 17,115 Total cash purchase price for customer receivables 15,824 13,096 Cash collections re-invested to purchase customer receivables 13,286 11,518 Non-cash increases to deferred purchase price $ 168 $ 3,935 Cash payments received on deferred purchase price 268 3,905 Activity related to long-term customer receivables purchased by GE Capital is as follows: Nine months ended September 30 (In millions) 2019 2018 GE Capital(a) GE Capital(a) Balance at January 1 $ 883 $ 1,947 GE sales to GE Capital — 123 Sales, collections, accretion and other (90 ) (272 ) Reclassification to current customer receivables (265 ) (492 ) Balance at September 30 $ 528 $ 1,307 (a) At September 30, 2019 and 2018, $402 million and $797 million, respectively, of long-term customer receivables purchased and retained by GE Capital, had been sold by GE to GE Capital with recourse (i.e., GE retains all or some risk of default). The effect on GE CFOA of claims by GE Capital on receivables sold with recourse have been insignificant for the nine months ended September 30, 2019 and 2018. Consolidated GE Capital (In millions) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Loans, net of deferred income $ 1,251 $ 5,118 $ 5,639 $ 10,834 Investment in financing leases, net of deferred income 2,120 2,639 2,120 2,822 3,371 7,757 7,759 13,656 Allowance for losses (50 ) (58 ) (12 ) (28 ) Financing receivables – net $ 3,321 $ 7,699 $ 7,748 $ 13,628 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | (In millions) September 30, 2019 December 31, 2018 Raw materials and work in process $ 8,983 $ 8,057 Finished goods 6,025 5,548 Unbilled shipments 195 197 Total inventories $ 15,203 $ 13,803 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT (In millions) September 30, 2019 December 31, 2018 Original cost $ 75,196 $ 75,618 Less accumulated depreciation and amortization (32,310 ) (32,007 ) Property, plant and equipment – net $ 42,886 $ 43,611 |
Schedule of Operating Lease Expense and Supplemental Information | OPERATING LEASE EXPENSE Three months ended September 30 Nine months ended September 30 (In millions) 2019 2018 2019 2018 Long-term (fixed) $ 180 $ 232 $ 625 $ 733 Long-term (variable) 41 26 111 135 Short-term 60 34 150 100 Total operating lease expense $ 281 $ 292 $ 887 $ 968 MATURITY OF LEASE LIABILITIES (In millions) Total 2019 (excluding nine months ended September 30, 2019) $ 212 2020 769 2021 636 2022 530 2023 429 Thereafter 1,195 Total undiscounted lease payments 3,771 Less: imputed interest (602 ) Total lease liability as of September 30, 2019 $ 3,169 SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES (In millions) Operating cash flows used for operating leases for the nine months ended September 30, 2019 $ 683 Right-of-use assets obtained in exchange for new lease liabilities for the nine months ended September 30, 2019 $ 459 Weighted-average remaining lease term at September 30, 2019 6.8 years Weighted-average discount rate at September 30, 2019 5.1 % |
Schedule of Maturity of Lease Liabilities | MATURITY OF LEASE LIABILITIES (In millions) Total 2019 (excluding nine months ended September 30, 2019) $ 212 2020 769 2021 636 2022 530 2023 429 Thereafter 1,195 Total undiscounted lease payments 3,771 Less: imputed interest (602 ) Total lease liability as of September 30, 2019 $ 3,169 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill Balances | GOODWILL (In millions) January 1, 2019 Dispositions and classification to held for sale Impairments Currency exchange Balance at Power $ 139 $ — $ — $ 6 $ 145 Renewable Energy 4,730 — (1,484 ) 33 3,279 Aviation 9,839 — — (31 ) 9,808 Healthcare 17,226 (5,532 ) — 28 11,722 Capital 904 (39 ) — (25 ) 839 Corporate 1,136 — — (263 ) 873 Total $ 33,974 $ (5,571 ) $ (1,484 ) $ (253 ) $ 26,666 |
Indefinite-lived Intangible Assets | OTHER INTANGIBLE ASSETS - NET (In millions) September 30, 2019 December 31, 2018 Intangible assets subject to amortization $ 10,766 $ 12,178 |
Intangible Assets Subject to Amortization | OTHER INTANGIBLE ASSETS - NET (In millions) September 30, 2019 December 31, 2018 Intangible assets subject to amortization $ 10,766 $ 12,178 |
REVENUES (Tables)
REVENUES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenues | EQUIPMENT & SERVICES REVENUES Three months ended September 30 (In millions) 2019 2018 Equipment Services Total Equipment Services Total Power $ 1,434 $ 2,492 $ 3,926 $ 1,334 $ 3,225 $ 4,559 Renewable Energy 3,609 816 4,425 3,414 505 3,920 Aviation 3,149 4,960 8,109 2,833 4,646 7,480 Healthcare 2,828 2,095 4,923 2,700 2,006 4,707 Total Industrial segment revenues $ 11,020 $ 10,363 $ 21,383 $ 10,283 $ 10,383 $ 20,665 EQUIPMENT & SERVICES REVENUES Nine months ended September 30 (In millions) 2019 2018 Equipment Services Total Equipment Services Total Power $ 4,473 $ 8,751 $ 13,224 $ 6,224 $ 10,545 $ 16,768 Renewable Energy 8,457 2,133 10,590 7,979 1,663 9,642 Aviation 9,295 14,645 23,940 8,281 13,830 22,111 Healthcare 8,320 6,220 14,540 8,119 6,268 14,387 Total Industrial segment revenues $ 30,545 $ 31,748 $ 62,293 $ 30,602 $ 32,305 $ 62,908 SUB-SEGMENT REVENUES Three months ended September 30 Nine months ended September 30 (In millions) 2019 2018 2019 2018 Gas Power $ 2,732 $ 2,678 $ 9,242 $ 9,719 Power Portfolio 1,194 1,882 3,982 7,050 Power $ 3,926 $ 4,559 $ 13,224 $ 16,768 Onshore Wind $ 3,193 $ 2,523 $ 7,084 $ 5,119 Grid Solutions equipment and services 1,004 1,059 2,876 3,483 Hydro and Offshore Wind 228 337 630 1,041 Renewable Energy $ 4,425 $ 3,920 $ 10,590 $ 9,642 Commercial Engines & Services $ 5,997 $ 5,636 $ 17,796 $ 16,443 Military 1,061 898 3,073 2,942 Systems & Other 1,050 946 3,071 2,726 Aviation $ 8,109 $ 7,480 $ 23,940 $ 22,111 Healthcare Systems $ 3,642 $ 3,566 $ 10,664 $ 10,877 Life Sciences 1,280 1,140 3,875 3,509 Healthcare $ 4,923 $ 4,707 $ 14,540 $ 14,387 Total Industrial Segment Revenues $ 21,383 $ 20,665 $ 62,293 $ 62,908 Capital(a) 2,097 2,473 6,645 7,075 Corporate items and eliminations (120 ) 254 39 531 Consolidated Revenues $ 23,360 $ 23,392 $ 68,976 $ 70,513 (a) |
CONTRACT AND OTHER DEFERRED A_2
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Contractors [Abstract] | |
Contract with Customer, Asset and Liability | September 30, 2019 (In millions) Power Aviation Renewable Energy Healthcare and Other Total Progress collections on equipment contracts $ 5,568 $ 95 $ 1,105 $ — $ 6,768 Other progress collections 566 4,700 3,297 464 9,026 Total progress collections 6,133 4,795 4,402 464 15,794 Deferred income 40 1,447 290 1,673 3,450 GE Progress collections and deferred income $ 6,174 $ 6,241 $ 4,692 $ 2,137 $ 19,245 December 31, 2018 (In millions) Progress collections on equipment contracts $ 5,536 $ 114 $ 1,325 $ — $ 6,975 Other progress collections 691 4,034 3,557 500 8,783 Total progress collections 6,227 4,148 4,883 500 15,758 Deferred income 112 1,338 260 1,770 3,480 GE Progress collections and deferred income $ 6,339 $ 5,486 $ 5,143 $ 2,271 $ 19,239 September 30, 2019 (In millions) Power Aviation Renewable Energy Healthcare and Other Total Revenues in excess of billings $ 5,346 $ 4,901 $ — $ — $ 10,247 Billings in excess of revenues (1,560 ) (3,293 ) — — (4,853 ) Long-term service agreements 3,787 1,607 — — 5,394 Short-term and other service agreements 172 343 — 290 804 Equipment contract revenues 2,670 93 1,288 324 4,374 Total contract assets 6,628 2,042 1,288 614 10,573 Deferred inventory costs 904 357 1,574 351 3,186 Nonrecurring engineering costs 42 2,107 62 45 2,257 Customer advances and other 1 1,149 — (32 ) 1,118 Contract and other deferred assets $ 7,576 $ 5,655 $ 2,924 $ 978 $ 17,133 December 31, 2018 (In millions) Power Aviation Renewable Energy Healthcare and Other Total Revenues in excess of billings $ 5,368 $ 5,412 $ — $ — $ 10,780 Billings in excess of revenues (1,693 ) (3,297 ) — — (4,989 ) Long-term service agreements 3,675 2,115 — — 5,790 Short-term and other service agreements 167 272 — 251 690 Equipment contract revenues 2,761 80 1,174 384 4,400 Total contract assets 6,603 2,468 1,174 635 10,880 Deferred inventory costs 1,003 673 1,267 365 3,309 Nonrecurring engineering costs 43 1,916 85 51 2,095 Customer advances and other — 1,146 — — 1,146 Contract and other deferred assets $ 7,650 $ 6,204 $ 2,525 $ 1,052 $ 17,431 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | (In millions) September 30, 2019 December 31, 2018 Short-term borrowings Commercial paper $ 2,997 $ 3,005 Current portion of long-term borrowings 764 60 Current portion of long-term borrowings assumed by GE 7,310 4,207 Other 1,703 2,081 Total GE short-term borrowings $ 12,775 $ 9,354 Current portion of long-term borrowings $ 4,601 $ 3,984 Intercompany payable to GE 2,990 2,684 Other 522 1,015 Total GE Capital short-term borrowings $ 8,113 $ 7,684 Eliminations (3,842 ) (4,262 ) Total short-term borrowings $ 17,046 $ 12,776 Long-term borrowings Senior notes $ 14,690 $ 20,387 Senior notes assumed by GE 23,384 29,218 Subordinated notes assumed by GE 2,820 2,836 Other 418 417 Total GE long-term borrowings $ 41,311 $ 52,858 Senior notes $ 32,537 $ 35,105 Subordinated notes 199 165 Intercompany payable to GE 17,255 19,828 Other 654 885 Total GE Capital long-term borrowings $ 50,645 $ 55,982 Eliminations (17,255 ) (19,892 ) Total long-term borrowings $ 74,701 $ 88,949 Non-recourse borrowings of consolidated securitization entities 1,498 1,875 Total borrowings $ 93,244 $ 103,599 |
INSURANCE LIABILITIES AND ANN_2
INSURANCE LIABILITIES AND ANNUITY BENEFITS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Insurance [Abstract] | |
Schedule of Insurance and Investment Contract Liabilities | September 30, 2019 (In millions) Long-term care insurance contracts Structured settlement annuities & life insurance contracts Other Other adjustments(a) Total Future policy benefit reserves $ 16,770 $ 9,578 $ 182 $ 5,903 $ 32,433 Claim reserves 4,130 236 1,154 — 5,520 Investment contracts — 1,165 1,074 — 2,239 Unearned premiums and other 28 198 132 — 358 20,928 11,177 2,542 5,903 40,550 Eliminations — — (466 ) — (466 ) Total $ 20,928 $ 11,177 $ 2,076 $ 5,903 $ 40,084 December 31, 2018 (In millions) Future policy benefit reserves $ 16,029 $ 9,495 $ 169 $ 2,247 $ 27,940 Claim reserves 3,917 230 1,178 — 5,324 Investment contracts — 1,239 1,149 — 2,388 Unearned premiums and other 34 205 103 — 342 19,980 11,169 2,599 2,247 35,994 Eliminations — — (432 ) — (432 ) Total $ 19,980 $ 11,169 $ 2,167 $ 2,247 $ 35,562 (a) To the extent that unrealized gains on specific investment 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 after-tax reduction of net unrealized gains recognized through "Accumulated other comprehensive income (loss)" in our consolidated Statement of Earnings (Loss). |
POSTRETIREMENT BENEFIT PLANS (T
POSTRETIREMENT BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Effect on Operations of Pension Plans | Principal pension plans Three months ended September 30 Nine months ended September 30 (In millions) 2019 2018 2019 2018 Service cost for benefits earned $ 154 $ 232 $ 472 $ 667 Prior service cost amortization 34 36 101 108 Expected return on plan assets (863 ) (803 ) (2,588 ) (2,443 ) Interest cost on benefit obligations 724 666 2,173 1,999 Net actuarial loss amortization 767 947 2,300 2,841 Curtailment loss (a) — 46 51 46 Benefit plans cost $ 816 $ 1,124 $ 2,509 $ 3,218 (a) Curtailment loss in the nine months ended September 30, 2019 and September 30, 2018, results from the spin-off and subsequent merger of our Transportation segment with Wabtec and the Baker Hughes decision to no longer participate in the GE Pension Plan after December 31, 2018, respectively. These curtailment losses are included in "Earnings (loss) from discontinued operations" in our consolidated Statement of Earnings (Loss). Other pension plans Three months ended September 30 Nine months ended September 30 (In millions) 2019 2018 2019 2018 Service cost for benefits earned $ 61 $ 85 $ 197 $ 279 Prior service cost (credit) amortization 1 (2 ) 2 (4 ) Expected return on plan assets (316 ) (342 ) (945 ) (1,059 ) Interest cost on benefit obligations 154 150 467 462 Net actuarial loss amortization 83 78 250 243 Settlement/curtailment loss (gain) — — 16 (6 ) Benefit plans cost (income) $ (17 ) $ (31 ) $ (13 ) $ (85 ) |
SHAREOWNERS' EQUITY (Tables)
SHAREOWNERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Shareowners' Equity | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Three months ended September 30 Nine months ended September 30 (In millions) 2019 2018 2019 2018 Beginning balance $ 59 $ 21 $ (39 ) $ (102 ) Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes of $15, $(22), $30 and $26(a) 30 (74 ) 151 66 Reclassifications from OCI – net of deferred taxes of $(3), $5, $(9) and $3 (12 ) 17 (35 ) 1 Other comprehensive income (loss) 18 (57 ) 116 67 Less OCI attributable to noncontrolling interests — — — 1 Investment securities ending balance $ 77 $ (36 ) $ 77 $ (36 ) Beginning balance $ (5,874 ) $ (5,446 ) $ (6,134 ) $ (4,661 ) OCI before reclassifications – net of deferred taxes of $(12), $(24), $27 and $17 (189 ) (639 ) (191 ) (1,856 ) Reclassifications from OCI – net of deferred taxes of $(5), $(1), $(9) and $(1)(b) 951 7 1,234 385 Other comprehensive income (loss) 762 (632 ) 1,043 (1,471 ) Less OCI attributable to noncontrolling interests (63 ) (38 ) (41 ) (93 ) Currency translation adjustments ending balance $ (5,050 ) $ (6,040 ) $ (5,050 ) $ (6,040 ) Beginning balance $ 26 $ 36 $ 13 $ 62 OCI before reclassifications – net of deferred taxes of $(4), $2, $(1) and $(6) (30 ) (8 ) (43 ) (35 ) Reclassifications from OCI – net of deferred taxes of $6, $2, $7 and $9 28 (1 ) 56 — Other comprehensive income (loss) (2 ) (9 ) 13 (35 ) Less OCI attributable to noncontrolling interests 1 (1 ) 2 — Cash flow hedges ending balance $ 24 $ 27 $ 24 $ 27 Beginning balance $ (7,063 ) $ (8,043 ) $ (8,254 ) $ (9,702 ) OCI before reclassifications – net of deferred taxes of $1, $16, $36 and $71 39 73 (72 ) 199 Reclassifications from OCI – net of deferred taxes of $170, $230, $517 and $666 616 789 1,910 2,322 Other comprehensive income (loss) 655 862 1,838 2,521 Less OCI attributable to noncontrolling interests 4 — (4 ) — Benefit plans ending balance $ (6,412 ) $ (7,181 ) $ (6,412 ) $ (7,181 ) Accumulated other comprehensive income (loss) at September 30 $ (11,361 ) $ (13,229 ) $ (11,361 ) $ (13,229 ) (a) Included adjustments of $(877) million and $234 million for the three months ended September 30, 2019 and 2018, respectively and $(2,888) million and $1,705 million for the nine months ended September 30, 2019 and 2018, respectively, related to 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 security gains been realized. See Note 12 for further information. (b) Currency translation gains and losses included $1,079 million for the nine months ended September 30, 2019 in earnings (loss) from discontinued operations, net of taxes. |
EARNINGS PER SHARE INFORMATION
EARNINGS PER SHARE INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three months ended September 30 2019 2018 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Earnings from continuing operations for per-share calculation $ (1,283 ) $ (1,283 ) $ (22,920 ) $ (22,920 ) Preferred stock dividends (42 ) (42 ) (39 ) (39 ) Earnings from continuing operations attributable to (1,325 ) (1,325 ) (22,959 ) (22,959 ) Earnings (loss) from discontinued operations (8,140 ) (8,140 ) 144 144 Net earnings (loss) attributable to GE common $ (9,465 ) $ (9,465 ) $ (22,812 ) $ (22,812 ) Shares of GE common stock outstanding 8,730 8,730 8,694 8,694 Employee compensation-related shares (including stock options) — — — — Total average equivalent shares 8,730 8,730 8,694 8,694 Earnings per share from continuing operations $ (0.15 ) $ (0.15 ) $ (2.64 ) $ (2.64 ) Earnings (loss) per share from discontinued operations (0.93 ) (0.93 ) 0.02 0.02 Net earnings (loss) per share (1.08 ) (1.08 ) (2.62 ) (2.62 ) Potentially dilutive securities(a) 453 424 Nine months ended September 30 2019 2018 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Earnings from continuing operations for per-share calculation $ (438 ) $ (438 ) $ (21,694 ) $ (21,694 ) Preferred stock dividends (270 ) (270 ) (260 ) (260 ) Earnings from continuing operations attributable to $ (708 ) $ (708 ) $ (21,954 ) $ (21,955 ) Earnings (loss) from discontinued operations (5,270 ) (5,270 ) (1,437 ) (1,437 ) Net earnings attributable to GE common $ (5,977 ) $ (5,977 ) $ (23,383 ) $ (23,383 ) Shares of GE common stock outstanding 8,721 8,721 8,689 8,689 Employee compensation-related shares (including stock options) — — — — Total average equivalent shares 8,721 8,721 8,689 8,689 Earnings from continuing operations $ (0.08 ) $ (0.08 ) $ (2.53 ) $ (2.53 ) Loss from discontinued operations (0.60 ) (0.60 ) (0.17 ) (0.17 ) Net earnings (0.69 ) (0.69 ) (2.69 ) (2.69 ) Potentially dilutive securities(a) 462 410 (a) Outstanding stock awards not included in the computation of diluted earnings per share because their effect was antidilutive. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 and excludes finance leases, equity securities without readily determinable fair value and non-financial assets and liabilities. Substantially all of these assets are considered to be Level 3 and the vast majority of our liabilities’ fair value are considered Level 2. September 30, 2019 December 31, 2018 (In millions) Carrying Estimated Carrying Estimated Assets Loans and other receivables $ 4,540 $ 4,638 $ 8,811 $ 8,829 Liabilities Borrowings (Note 11) 93,244 98,246 103,599 100,492 Investment contracts (Note 12) 2,239 2,653 2,388 2,630 |
Fair Value of Derivative Assets | FAIR VALUE OF DERIVATIVES September 30, 2019 December 31, 2018 (In millions) Gross Notional All other assets All other liabilities Gross Notional All other assets All other liabilities Interest rate contracts $ 23,819 $ 1,904 $ 11 $ 22,904 $ 1,335 $ 23 Currency exchange contracts 6,661 89 98 7,854 175 114 Derivatives accounted for as hedges $ 30,480 $ 1,993 $ 109 $ 30,758 $ 1,511 $ 138 Interest rate contracts $ 3,413 $ 28 $ 3 $ 6,198 $ 28 $ 2 Currency exchange contracts 61,050 543 953 77,544 653 1,472 Other contracts 1,746 67 82 2,604 13 209 Derivatives not accounted for as hedges $ 66,210 $ 639 $ 1,037 $ 86,346 $ 695 $ 1,682 Gross derivatives $ 96,690 $ 2,632 $ 1,146 $ 117,104 $ 2,205 $ 1,820 Netting and credit adjustments $ (674 ) $ (678 ) $ (959 ) $ (967 ) Cash collateral adjustments (1,226 ) (202 ) (1,042 ) (267 ) Net derivatives recognized in statement of financial position $ 732 $ 266 $ 205 $ 586 Net accrued interest $ 152 $ 4 $ 205 $ 1 Securities held as collateral (567 ) — (235 ) — Net amount $ 317 $ 270 $ 174 $ 587 |
Fair Value of Derivative Liabilities | FAIR VALUE OF DERIVATIVES September 30, 2019 December 31, 2018 (In millions) Gross Notional All other assets All other liabilities Gross Notional All other assets All other liabilities Interest rate contracts $ 23,819 $ 1,904 $ 11 $ 22,904 $ 1,335 $ 23 Currency exchange contracts 6,661 89 98 7,854 175 114 Derivatives accounted for as hedges $ 30,480 $ 1,993 $ 109 $ 30,758 $ 1,511 $ 138 Interest rate contracts $ 3,413 $ 28 $ 3 $ 6,198 $ 28 $ 2 Currency exchange contracts 61,050 543 953 77,544 653 1,472 Other contracts 1,746 67 82 2,604 13 209 Derivatives not accounted for as hedges $ 66,210 $ 639 $ 1,037 $ 86,346 $ 695 $ 1,682 Gross derivatives $ 96,690 $ 2,632 $ 1,146 $ 117,104 $ 2,205 $ 1,820 Netting and credit adjustments $ (674 ) $ (678 ) $ (959 ) $ (967 ) Cash collateral adjustments (1,226 ) (202 ) (1,042 ) (267 ) Net derivatives recognized in statement of financial position $ 732 $ 266 $ 205 $ 586 Net accrued interest $ 152 $ 4 $ 205 $ 1 Securities held as collateral (567 ) — (235 ) — Net amount $ 317 $ 270 $ 174 $ 587 |
Effects of Derivatives on Earnings | The table below presents the effect of our derivative financial instruments in the consolidated Statement of Earnings: Three months ended September 30, 2019 Three months ended September 30, 2018 (In millions) Revenues Cost of sales Interest Expense SG&A Other Income Revenues Cost of sales Interest Expense SG&A Other Income Total amounts presented in the consolidated Statement of Earnings $ 23,360 $ 17,328 $ 1,279 $ 3,293 $ 158 $ 23,392 $ 17,847 $ 1,155 $ 4,100 $ 279 Total effect of cash flow hedges $ (24 ) $ (1 ) $ (8 ) $ (2 ) $ — $ 8 $ 1 $ (10 ) $ — $ — Hedged items $ (1,000 ) $ 333 Derivatives designated as hedging instruments 1,011 (362 ) Total effect of fair value hedges $ 10 $ (29 ) Interest rate contracts $ — $ — $ — $ — $ — $ (11 ) $ — $ — $ — $ — Currency exchange contracts (108 ) (8 ) (73 ) 60 (28 ) (415 ) (240 ) — — (10 ) Other (1 ) — — — 9 — — 38 — (22 ) Total effect of derivatives not designated as hedges $ (109 ) $ (8 ) $ (74 ) $ 60 $ (18 ) $ (426 ) $ (240 ) $ 38 $ — $ (32 ) Nine months ended September 30, 2019 Nine months ended September 30, 2018 (In millions) Revenues Cost of sales Interest Expense SG&A Other Income Revenues Cost of sales Interest Expense SG&A Other Income Total amounts presented in the consolidated Statement of Earnings $ 68,976 $ 50,949 $ 3,272 $ 10,120 $ 1,170 $ 70,513 $ 52,244 $ 3,585 $ 11,013 $ 1,388 Total effect of cash flow hedges $ (18 ) $ (14 ) $ (27 ) $ (3 ) $ — $ 4 $ 17 $ (30 ) $ — $ — Hedged items $ (2,186 ) $ 1,200 Derivatives designated as hedging instruments 2,172 (1,285 ) Total effect of fair value hedges $ (14 ) $ (85 ) Interest rate contracts $ (36 ) $ — $ — $ — $ — $ (46 ) $ — $ — $ — $ — Currency exchange contracts (25 ) (29 ) (212 ) (2 ) (52 ) (921 ) (484 ) — — (6 ) Other (1 ) — 123 — 10 (1 ) — 27 — (2 ) Total effect of derivatives not designated as hedges $ (62 ) $ (29 ) $ (89 ) $ (2 ) $ (42 ) $ (967 ) $ (484 ) $ 27 $ — $ (8 ) |
COMMITMENTS, GUARANTEES, PROD_2
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of 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 . (In millions) 2019 2018 Balance at January 1 $ 2,193 $ 2,103 Current-year provisions 527 722 Expenditures (525 ) (597 ) Other changes 34 7 Balance as of September 30 $ 2,229 $ 2,236 |
CASH FLOWS INFORMATION (Tables)
CASH FLOWS INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flows Information | GE Nine months ended September 30 (In millions) 2019 2018 Increase (decrease) in employee benefit liabilities $ (373 ) $ 41 Other gains on investing activities 232 (434 ) Restructuring and other charges(a) 763 1,651 Restructuring and other cash expenditures (854 ) (975 ) Increase (decrease) in equipment project accruals (76 ) (785 ) Baker Hughes Class B dividends received 282 399 Other(b) 580 (434 ) All other operating activities $ 554 $ (537 ) Derivative settlements, net $ 9 $ (490 ) Investments in intangible assets, net (17 ) (472 ) Sales of retained ownership interests in Wabtec 3,383 — Other(c) 29 138 All other investing activities $ 3,404 $ (824 ) Disposition of Baker Hughes noncontrolling interests $ — $ 638 Acquisition of noncontrolling interests (28 ) (240 ) Other(d) (320 ) 34 All other financing activities $ (348 ) $ 432 (a) Excludes non-cash adjustments reflected as "Depreciation and amortization of property, plant and equipment" or "Amortization of intangible assets" in our consolidated Statement of Cash Flows. (b) Included other adjustments to net income, such as write-downs of assets and the impacts of acquisition accounting and changes in other assets and other liabilities classified as operating activities, such as the timing of payments of customer allowances. (c) Other included net activity related to settlements between our continuing operations and discontinued operations. (d) Other included debt tender expenditures of $(244) million |
INTERCOMPANY TRANSACTIONS (Tabl
INTERCOMPANY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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. Nine months ended September 30 (In millions) 2019 2018 Combined GE and GE Capital cash from (used for) operating activities - continuing operations $ 1,311 $ (3,962 ) GE current receivables sold to GE Capital 508 (161 ) GE long-term receivables sold to GE Capital 340 851 Supply chain finance programs 1,062 152 Other reclassifications and eliminations 201 (1,214 ) Total cash from (used for) operating activities - continuing operations $ 3,423 $ (4,334 ) Combined GE and GE Capital cash from (used for) investing activities - continuing operations $ 9,680 $ 7,209 GE current receivables sold to GE Capital (1,167 ) (1,016 ) GE long-term receivables sold to GE Capital (340 ) (851 ) GE Capital long-term loans to GE (480 ) 6,479 Supply chain finance programs (1,062 ) (152 ) Capital contribution from GE to GE Capital 1,500 — Other reclassifications and eliminations (1,043 ) 460 Total cash from (used for) investing activities - continuing operations $ 7,087 $ 12,129 Combined GE and GE Capital cash from (used for) financing activities - continuing operations $ (14,201 ) $ (17,677 ) GE current receivables sold to GE Capital 659 1,177 GE Capital long-term loans to GE 480 (6,479 ) Capital contribution from GE to GE Capital (1,500 ) — Other reclassifications and eliminations 842 755 Total cash from (used for) financing activities - continuing operations $ (13,721 ) $ (22,224 ) |
GUARANTOR FINANCIAL INFORMATI_2
GUARANTOR FINANCIAL INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Sales of goods and services $ 7,169 $ — $ — $ 31,413 $ (17,077 ) $ 21,504 GE Capital revenues from services — 245 (18 ) 2,107 (477 ) 1,856 Total revenues 7,169 245 (18 ) 33,519 (17,554 ) 23,360 Interest and other financial charges 634 272 356 148 (132 ) 1,279 Other costs and expenses 4,945 — (38 ) 40,629 (22,048 ) 23,488 Total costs and expenses 5,580 272 318 40,777 (22,180 ) 24,767 Other income (loss) 1,320 — — 4,458 (5,619 ) 158 Equity in earnings (loss) of affiliates (4,476 ) — (37 ) 31,207 (26,695 ) — Earnings (loss) from continuing operations before income taxes (1,567 ) (27 ) (373 ) 28,406 (27,688 ) (1,249 ) Benefit (provision) for income taxes (386 ) 3 — 339 3 (41 ) Earnings (loss) from continuing operations (1,953 ) (24 ) (373 ) 28,745 (27,685 ) (1,290 ) Earnings (loss) from discontinued operations, net of taxes 683 — 40 — (8,817 ) (8,093 ) Net earnings (loss) (1,270 ) (24 ) (333 ) 28,745 (36,502 ) (9,383 ) Less net earnings (loss) attributable to noncontrolling interests — — — (7 ) 46 40 Net earnings (loss) attributable to the Company (1,270 ) (24 ) (333 ) 28,752 (36,548 ) (9,423 ) Other comprehensive income (loss) 1,491 — (1 ) 1,313 (1,312 ) 1,491 Comprehensive income (loss) attributable to the Company $ 221 $ (24 ) $ (334 ) $ 30,064 $ (37,860 ) $ (7,931 ) 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 Sales of goods and services $ 7,301 $ — $ — $ 30,387 $ (16,407 ) $ 21,282 GE Capital revenues from services — 237 300 2,508 (936 ) 2,110 Total revenues 7,301 237 300 32,895 (17,342 ) 23,392 Interest and other financial charges 451 236 725 553 (810 ) 1,155 Other costs and expenses 11,780 — — 25,345 8,352 45,478 Total costs and expenses 12,231 236 725 25,898 7,542 46,633 Other income (loss) 1,193 — — 1,217 (2,132 ) 279 Equity in earnings (loss) of affiliates (11,235 ) — 705 28,378 (17,849 ) — Earnings (loss) from continuing operations before income taxes (14,971 ) 2 281 36,593 (44,866 ) (22,962 ) Benefit (provision) for income taxes 224 — — (536 ) 260 (52 ) Earnings (loss) from continuing operations (14,748 ) 1 281 36,057 (44,606 ) (23,014 ) Earnings (loss) from discontinued operations, net of taxes 39 — 18 — 98 155 Net earnings (loss) (14,708 ) 1 298 36,057 (44,508 ) (22,859 ) Less net earnings (loss) attributable to noncontrolling interests — — — (81 ) (9 ) (90 ) Net earnings (loss) attributable to the Company (14,708 ) 1 298 36,138 (44,498 ) (22,769 ) Other comprehensive income (loss) 203 — 12 (751 ) 739 203 Comprehensive income (loss) attributable to the Company $ (14,505 ) $ 1 $ 310 $ 35,387 $ (43,759 ) $ (22,566 ) CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Sales of goods and services $ 19,993 $ — $ — $ 95,009 $ (51,871 ) $ 63,132 GE Capital revenues from services — 724 68 6,738 (1,685 ) 5,845 Total revenues 19,993 724 68 101,747 (53,556 ) 68,976 Interest and other financial charges 1,278 744 1,068 899 (716 ) 3,272 Other costs and expenses 18,377 — — 85,378 (36,458 ) 67,296 Total costs and expenses 19,654 744 1,068 86,276 (37,174 ) 70,568 Other income (loss) (1,894 ) — — 12,588 (9,524 ) 1,170 Equity in earnings (loss) of affiliates (4,430 ) — 808 58,383 (54,761 ) — Earnings (loss) from continuing operations before income taxes (5,985 ) (20 ) (192 ) 86,442 (80,667 ) (422 ) Benefit (provision) for income taxes (673 ) 3 — 46 624 1 Earnings (loss) from continuing operations (6,658 ) (18 ) (192 ) 86,489 (80,043 ) (421 ) Earnings (loss) from discontinued operations, net of taxes 951 — 42 — (6,205 ) (5,212 ) Net earnings (loss) (5,707 ) (18 ) (150 ) 86,489 (86,248 ) (5,634 ) Less net earnings (loss) attributable to noncontrolling interests — — — (3 ) 76 73 Net earnings (loss) attributable to the Company (5,707 ) (18 ) (150 ) 86,492 (86,324 ) (5,707 ) Other comprehensive income (loss) 3,053 — (1,105 ) 870 235 3,053 Comprehensive income (loss) attributable to the Company $ (2,654 ) $ (18 ) $ (1,255 ) $ 87,362 $ (86,089 ) $ (2,654 ) 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 Sales of goods and services $ 21,127 $ — $ — $ 94,872 $ (51,395 ) $ 64,604 GE Capital revenues from services — 678 852 5,390 (1,011 ) 5,909 Total revenues 21,127 678 852 100,263 (52,406 ) 70,513 Interest and other financial charges 1,281 671 1,889 2,041 (2,296 ) 3,585 Other costs and expenses 32,198 — — 89,228 (31,793 ) 89,634 Total costs and expenses 33,479 672 1,889 91,269 (34,090 ) 93,219 Other income (loss) 2,450 — — 3,883 (4,945 ) 1,388 Equity in earnings (loss) of affiliates (11,761 ) — 1,199 28,378 (17,816 ) — Earnings (loss) from continuing operations before income taxes (21,663 ) 7 161 41,255 (41,078 ) (21,318 ) Benefit (provision) for income taxes 47 (1 ) — (1,098 ) 592 (460 ) Earnings (loss) from continuing operations (21,616 ) 6 161 40,157 (40,486 ) (21,777 ) Earnings (loss) from discontinued operations, net of taxes (1,634 ) — (63 ) 1 170 (1,526 ) Net earnings (loss) (23,250 ) 6 98 40,158 (40,316 ) (23,304 ) Less net earnings (loss) attributable to noncontrolling interests (134 ) — — (202 ) 148 (188 ) Net earnings (loss) attributable to the Company (23,116 ) 6 98 40,360 (40,464 ) (23,116 ) Other comprehensive income (loss) 1,174 — (42 ) (2,381 ) 2,424 1,174 Comprehensive income (loss) attributable to the Company $ (21,941 ) $ 6 $ 56 $ 37,978 $ (38,040 ) $ (21,941 ) |
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, 2019 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Sales of goods and services $ 7,169 $ — $ — $ 31,413 $ (17,077 ) $ 21,504 GE Capital revenues from services — 245 (18 ) 2,107 (477 ) 1,856 Total revenues 7,169 245 (18 ) 33,519 (17,554 ) 23,360 Interest and other financial charges 634 272 356 148 (132 ) 1,279 Other costs and expenses 4,945 — (38 ) 40,629 (22,048 ) 23,488 Total costs and expenses 5,580 272 318 40,777 (22,180 ) 24,767 Other income (loss) 1,320 — — 4,458 (5,619 ) 158 Equity in earnings (loss) of affiliates (4,476 ) — (37 ) 31,207 (26,695 ) — Earnings (loss) from continuing operations before income taxes (1,567 ) (27 ) (373 ) 28,406 (27,688 ) (1,249 ) Benefit (provision) for income taxes (386 ) 3 — 339 3 (41 ) Earnings (loss) from continuing operations (1,953 ) (24 ) (373 ) 28,745 (27,685 ) (1,290 ) Earnings (loss) from discontinued operations, net of taxes 683 — 40 — (8,817 ) (8,093 ) Net earnings (loss) (1,270 ) (24 ) (333 ) 28,745 (36,502 ) (9,383 ) Less net earnings (loss) attributable to noncontrolling interests — — — (7 ) 46 40 Net earnings (loss) attributable to the Company (1,270 ) (24 ) (333 ) 28,752 (36,548 ) (9,423 ) Other comprehensive income (loss) 1,491 — (1 ) 1,313 (1,312 ) 1,491 Comprehensive income (loss) attributable to the Company $ 221 $ (24 ) $ (334 ) $ 30,064 $ (37,860 ) $ (7,931 ) 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 Sales of goods and services $ 7,301 $ — $ — $ 30,387 $ (16,407 ) $ 21,282 GE Capital revenues from services — 237 300 2,508 (936 ) 2,110 Total revenues 7,301 237 300 32,895 (17,342 ) 23,392 Interest and other financial charges 451 236 725 553 (810 ) 1,155 Other costs and expenses 11,780 — — 25,345 8,352 45,478 Total costs and expenses 12,231 236 725 25,898 7,542 46,633 Other income (loss) 1,193 — — 1,217 (2,132 ) 279 Equity in earnings (loss) of affiliates (11,235 ) — 705 28,378 (17,849 ) — Earnings (loss) from continuing operations before income taxes (14,971 ) 2 281 36,593 (44,866 ) (22,962 ) Benefit (provision) for income taxes 224 — — (536 ) 260 (52 ) Earnings (loss) from continuing operations (14,748 ) 1 281 36,057 (44,606 ) (23,014 ) Earnings (loss) from discontinued operations, net of taxes 39 — 18 — 98 155 Net earnings (loss) (14,708 ) 1 298 36,057 (44,508 ) (22,859 ) Less net earnings (loss) attributable to noncontrolling interests — — — (81 ) (9 ) (90 ) Net earnings (loss) attributable to the Company (14,708 ) 1 298 36,138 (44,498 ) (22,769 ) Other comprehensive income (loss) 203 — 12 (751 ) 739 203 Comprehensive income (loss) attributable to the Company $ (14,505 ) $ 1 $ 310 $ 35,387 $ (43,759 ) $ (22,566 ) CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Sales of goods and services $ 19,993 $ — $ — $ 95,009 $ (51,871 ) $ 63,132 GE Capital revenues from services — 724 68 6,738 (1,685 ) 5,845 Total revenues 19,993 724 68 101,747 (53,556 ) 68,976 Interest and other financial charges 1,278 744 1,068 899 (716 ) 3,272 Other costs and expenses 18,377 — — 85,378 (36,458 ) 67,296 Total costs and expenses 19,654 744 1,068 86,276 (37,174 ) 70,568 Other income (loss) (1,894 ) — — 12,588 (9,524 ) 1,170 Equity in earnings (loss) of affiliates (4,430 ) — 808 58,383 (54,761 ) — Earnings (loss) from continuing operations before income taxes (5,985 ) (20 ) (192 ) 86,442 (80,667 ) (422 ) Benefit (provision) for income taxes (673 ) 3 — 46 624 1 Earnings (loss) from continuing operations (6,658 ) (18 ) (192 ) 86,489 (80,043 ) (421 ) Earnings (loss) from discontinued operations, net of taxes 951 — 42 — (6,205 ) (5,212 ) Net earnings (loss) (5,707 ) (18 ) (150 ) 86,489 (86,248 ) (5,634 ) Less net earnings (loss) attributable to noncontrolling interests — — — (3 ) 76 73 Net earnings (loss) attributable to the Company (5,707 ) (18 ) (150 ) 86,492 (86,324 ) (5,707 ) Other comprehensive income (loss) 3,053 — (1,105 ) 870 235 3,053 Comprehensive income (loss) attributable to the Company $ (2,654 ) $ (18 ) $ (1,255 ) $ 87,362 $ (86,089 ) $ (2,654 ) 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 Sales of goods and services $ 21,127 $ — $ — $ 94,872 $ (51,395 ) $ 64,604 GE Capital revenues from services — 678 852 5,390 (1,011 ) 5,909 Total revenues 21,127 678 852 100,263 (52,406 ) 70,513 Interest and other financial charges 1,281 671 1,889 2,041 (2,296 ) 3,585 Other costs and expenses 32,198 — — 89,228 (31,793 ) 89,634 Total costs and expenses 33,479 672 1,889 91,269 (34,090 ) 93,219 Other income (loss) 2,450 — — 3,883 (4,945 ) 1,388 Equity in earnings (loss) of affiliates (11,761 ) — 1,199 28,378 (17,816 ) — Earnings (loss) from continuing operations before income taxes (21,663 ) 7 161 41,255 (41,078 ) (21,318 ) Benefit (provision) for income taxes 47 (1 ) — (1,098 ) 592 (460 ) Earnings (loss) from continuing operations (21,616 ) 6 161 40,157 (40,486 ) (21,777 ) Earnings (loss) from discontinued operations, net of taxes (1,634 ) — (63 ) 1 170 (1,526 ) Net earnings (loss) (23,250 ) 6 98 40,158 (40,316 ) (23,304 ) Less net earnings (loss) attributable to noncontrolling interests (134 ) — — (202 ) 148 (188 ) Net earnings (loss) attributable to the Company (23,116 ) 6 98 40,360 (40,464 ) (23,116 ) Other comprehensive income (loss) 1,174 — (42 ) (2,381 ) 2,424 1,174 Comprehensive income (loss) attributable to the Company $ (21,941 ) $ 6 $ 56 $ 37,978 $ (38,040 ) $ (21,941 ) |
Condensed Consolidating Statement of Financial Position | CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION SEPTEMBER 30, 2019 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash, cash equivalents and restricted cash $ 10,001 $ — $ — $ 21,215 $ (3,406 ) $ 27,810 Receivables - net 41,269 17,841 34 61,998 (94,416 ) 26,726 Investment in subsidiaries 143,127 — 40,179 699,149 (882,455 ) — All other assets 31,724 480 — 316,579 (140,309 ) 208,474 Total assets $ 226,120 $ 18,322 $ 40,212 $ 1,098,942 $ (1,120,586 ) $ 263,009 Short-term borrowings $ 130,045 $ — $ 1,552 $ 7,303 $ (121,854 ) $ 17,046 Long-term and non-recourse borrowings 40,901 17,019 25,511 24,676 (31,909 ) 76,199 All other liabilities 65,166 275 219 136,051 (61,100 ) 140,612 Total liabilities 236,112 17,294 27,282 168,031 (214,863 ) 233,856 Total liabilities and equity $ 226,120 $ 18,322 $ 40,212 $ 1,098,942 $ (1,120,586 ) $ 263,009 CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2018 (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash, cash equivalents and restricted cash $ 9,561 $ — $ — $ 25,975 $ (4,412 ) $ 31,124 Receivables - net 27,868 17,467 2,792 56,256 (74,895 ) 29,488 Investment in subsidiaries 175,071 — 45,832 733,535 (954,437 ) — All other assets 19,165 12 — 298,493 (67,210 ) 250,460 Total assets $ 231,665 $ 17,479 $ 48,623 $ 1,114,260 $ (1,100,954 ) $ 311,072 Short-term borrowings $ 143,481 $ — $ 9,854 $ 9,653 $ (150,212 ) $ 12,776 Long-term and non-recourse borrowings 50,705 16,115 24,341 47,014 (47,352 ) 90,824 All other liabilities 45,722 336 245 133,203 (23,514 ) 155,992 Total liabilities 239,908 16,452 34,439 189,870 (221,078 ) 259,591 Total liabilities and equity $ 231,665 $ 17,479 $ 48,623 $ 1,114,260 $ (1,100,954 ) $ 311,072 |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2019 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash from (used for) operating activities(a) $ 9,148 $ 400 $ (1,539 ) $ 6,556 $ (12,531 ) $ 2,033 Cash from (used for) investing activities $ 34,181 $ (400 ) $ 6,072 $ 108,843 $ (143,646 ) $ 5,050 Cash from (used for) financing activities $ (42,889 ) $ — $ (4,532 ) $ (120,127 ) $ 153,460 $ (14,089 ) Effect of currency exchange rate changes on cash, cash equivalents and restricted cash — — — (131 ) — (131 ) Increase (decrease) in cash, cash equivalents and restricted cash 440 — — (4,859 ) (2,717 ) (7,136 ) Cash, cash equivalents and restricted cash at beginning of year 9,561 — — 26,676 (689 ) 35,548 Cash, cash equivalents and restricted cash 10,001 — — 21,817 (3,406 ) 28,412 Less cash, cash equivalents and restricted cash of discontinued operations at September 30 — — — 602 — 602 Cash, cash equivalents and restricted cash of continuing operations at September 30 $ 10,001 $ — $ — $ 21,215 $ (3,406 ) $ 27,810 (a) Parent Company Guarantor cash flows included cash from (used for) operating activities of discontinued operations of $(2,382) 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 from (used for) operating activities(a) $ 11,267 $ (118 ) $ (381 ) $ 24,135 $ (38,492 ) $ (3,589 ) Cash from (used for) investing activities $ (625 ) $ 189 $ (1,052 ) $ (18,293 ) $ 31,417 $ 11,636 Cash from (used for) financing activities $ (11,824 ) $ (70 ) $ 1,445 $ (16,845 ) $ 2,328 $ (24,967 ) 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 (11,443 ) (4,747 ) (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 2,289 — 15 30,550 (5,490 ) 27,364 Less cash, cash equivalents and restricted cash of discontinued operations at September 30 — — — 5,310 — 5,310 Cash, cash equivalents and restricted cash of continuing operations at September 30 $ 2,289 $ — $ 15 $ 25,240 $ (5,490 ) $ 22,054 (a) Parent Company Guarantor cash flows included cash from (used for) operating activities of discontinued operations of $185 million . |
SEGMENT OPERATIONS (Tables)
SEGMENT OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Operating Segments | SUMMARY OF REPORTABLE SEGMENTS Three months ended September 30 Nine months ended September 30 (Dollars in millions) 2019 2018 V% 2019 2018 V% Power $ 3,926 $ 4,559 (14) % $ 13,224 $ 16,768 (21) % Renewable Energy 4,425 3,920 13 % 10,590 9,642 10 % Aviation 8,109 7,480 8 % 23,940 22,111 8 % Healthcare 4,923 4,707 5 % 14,540 14,387 1 % Total industrial segment revenues 21,383 20,665 3 % 62,293 62,908 (1) % Capital 2,097 2,473 (15) % 6,645 7,075 (6) % Total segment revenues 23,480 23,138 1 % 68,938 69,982 (1) % Corporate items and eliminations (120 ) 254 U 39 531 (93) % Consolidated revenues $ 23,360 $ 23,392 — % $ 68,976 $ 70,513 (2) % Power $ (144 ) $ (676 ) 79 % $ 84 $ (22 ) F Renewable Energy (98 ) 116 U (469 ) 312 U Aviation 1,718 1,665 3 % 4,764 4,743 — % Healthcare 974 861 13 % 2,714 2,522 8 % Total industrial segment profit (loss) 2,450 1,967 25 % 7,092 7,555 (6) % Capital (645 ) 19 U (599 ) (403 ) (49 )% Total segment profit (loss) 1,806 1,986 (9) % 6,493 7,151 (9) % Corporate items and eliminations (808 ) (1,523 ) 47 % (2,013 ) (2,596 ) 22 % GE goodwill impairments (740 ) (21,973 ) 97 % (1,484 ) (21,973 ) 93 % GE interest and other financial charges (791 ) (590 ) (34) % (1,693 ) (1,773 ) 5 % GE non-operating benefit costs (562 ) (760 ) 26 % (1,684 ) (2,132 ) 21 % GE benefit (provision) for income taxes (229 ) (95 ) U (327 ) (624 ) 48 % Earnings (loss) from continuing operations attributable to GE common shareowners (1,325 ) (22,956 ) 94 % (707 ) (21,947 ) 97 % Earnings (loss) from discontinued operations, net of taxes (8,093 ) 155 U (5,212 ) (1,526 ) U Less net earnings attributable to noncontrolling interests, discontinued operations 46 7 F 58 (97 ) F Earnings (loss) from discontinued operations, net of tax and noncontrolling interest (8,140 ) 148 U (5,270 ) (1,429 ) U Consolidated net earnings (loss) attributable to the GE common shareowners $ (9,465 ) $ (22,808 ) 59 % $ (5,977 ) $ (23,376 ) 74 % |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Restricted cash | $ 633 | $ 388 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounting Changes (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 87,213 | $ 93,109 | |
Right-of-use assets | 2,970 | ||
Lease liabilities | $ 3,169 | ||
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 315 | ||
Right-of-use assets | 3,272 | ||
Lease liabilities | 3,459 | ||
ASU 2017-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | 52 | ||
Borrowings | $ (52) |
BUSINESSES HELD FOR SALE AND _3
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS - Assets and Liabilities of Businesses Held for Sale, Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Feb. 25, 2019 | Dec. 31, 2018 | Nov. 13, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Assets held for sale | $ 12,832 | $ 12,832 | $ 1,629 | ||||
Liabilities held for sale | 1,543 | 1,543 | 708 | ||||
Goodwill | 26,666 | 26,666 | $ 33,974 | ||||
Assets planned to be disposed of | $ 20,000 | ||||||
Pre-tax gain (loss) on disposal | (8,677) | $ 0 | (5,160) | $ 4 | |||
Held for Sale or Disposed of by Sale | BioPharma | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Consideration | $ 21,400 | ||||||
Goodwill | 5,523 | 5,523 | |||||
Held for Sale, Not Discontinued Operation | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Consideration | 1,070 | 1,070 | |||||
Pre-tax gain (loss) on disposal | 218 | ||||||
Liquidation of valuation allowance | 548 | 548 | |||||
Held for Sale, Not Discontinued Operation | PK AirFinance | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Assets held for sale | 3,900 | 3,900 | |||||
Liabilities held for sale | 129 | 129 | |||||
Held for Sale, Not Discontinued Operation | BioPharma | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Assets held for sale | 8,332 | 8,332 | |||||
Liabilities held for sale | $ 1,174 | $ 1,174 |
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, 2019 | Dec. 31, 2018 |
Assets | ||
Assets | $ 4,178 | $ 63,853 |
Liabilities | ||
Liabilities | 387 | 19,281 |
Held for Sale, Not Discontinued Operation | ||
Assets | ||
Current receivables | 400 | 184 |
Inventories | 707 | 529 |
Financing receivables held for sale | 3,849 | 0 |
Property, plant, and equipment – net and Operating leases | 906 | 423 |
Goodwill and Other intangible assets - net | 6,285 | 884 |
Valuation allowance | (508) | (1,013) |
Deferred tax asset | 819 | 0 |
Other assets | 376 | 622 |
Assets | 12,832 | 1,629 |
Liabilities | ||
Accounts payable and Progress collections and deferred income | 798 | 428 |
Non-current compensation and benefits | 360 | 152 |
Other liabilities | 384 | 128 |
Liabilities | $ 1,543 | $ 708 |
BUSINESSES HELD FOR SALE AND _5
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS - Discontinued Operations, Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Aug. 31, 2019 | Feb. 25, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Apr. 30, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Proceeds from principal business dispositions | $ 1,124 | $ 5,477 | |||||||||
Gain (loss) on disposal before income taxes | $ (8,677) | $ 0 | (5,160) | 4 | |||||||
Gain (loss) on disposal, net of taxes | (8,201) | 0 | (5,648) | 3 | |||||||
Violation of FIRREA by WMC and GE Capital | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Amount to be paid | $ 1,500 | ||||||||||
Baker Hughes disposal group | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Gain (loss) on disposal before income taxes | (8,667) | 0 | (8,667) | 0 | |||||||
Gain (loss) on disposal, net of taxes | (8,190) | 0 | (8,190) | 0 | |||||||
Baker Hughes disposal group | Discontinued Operations | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Gain (loss) on disposal before income taxes | 8,667 | ||||||||||
Gain (loss) on disposal, net of taxes | 8,190 | ||||||||||
Transportation | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Gain (loss) on disposal before income taxes | 0 | 0 | 3,471 | 0 | |||||||
Gain (loss) on disposal, net of taxes | 0 | $ 2,508 | $ 0 | 2,508 | $ 0 | ||||||
Transportation | Discontinued Operations | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Gain (loss) on disposal before income taxes | $ 3,471 | ||||||||||
Gain (loss) on disposal, net of taxes | 2,508 | ||||||||||
Decrease in additional paid in capital related with spinoff | $ (852) | ||||||||||
Percentage of shares to shareholders in spinoff | 49.40% | ||||||||||
Baker Hughes | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Initial fair value of investment | $ 9,631 | $ 9,631 | $ 9,631 | ||||||||
Ownership interest (as a percent) | 36.80% | 36.80% | 36.80% | ||||||||
Fair value of promissory note receivable | $ 750 | $ 750 | $ 750 | ||||||||
Share price (in dollars per share) | $ 23.53 | $ 23.53 | $ 23.53 | ||||||||
Baker Hughes | Baker Hughes disposal group | Discontinued Operations | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Sale of shares | 144.1 | ||||||||||
Ownership interest (as a percent) | 36.80% | 36.80% | 36.80% | ||||||||
Proceeds from principal business dispositions | $ 3,037 | ||||||||||
Ownership interest (as a percentage) | 50.20% | ||||||||||
Wabtec | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Fair value of interest in common and preferred shares | $ 3,513 | ||||||||||
Share price (in dollars per share) | $ 73.45 | ||||||||||
Wabtec | Transportation | Discontinued Operations | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Ownership interest (as a percent) | 24.90% | ||||||||||
Proceeds from principal business dispositions | $ 2,827 | ||||||||||
Additional cash consideration for tax benefits that will be realized | $ 470 | ||||||||||
Wabtec | Transportation | Discontinued Operations | Common Stock | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Ownership interest (as a percent) | 24.30% | ||||||||||
GE Capital | Discontinued Operations | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Tax benefit | $ 332 | ||||||||||
Net interest benefits | $ 46 | ||||||||||
GE Capital Exit Plan | Discontinued Operations | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Discontinued operations, intercompany tax receivables | 879 | $ 879 | $ 879 | $ 1,141 | |||||||
Baker Hughes | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Cash collected from affiliate | 157 | ||||||||||
Baker Hughes | Promissory Note | Baker Hughes Promissory Note | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Cash collected from affiliate | 151 | ||||||||||
Financing Receivable | Baker Hughes | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Finance program outstanding balance | $ 312 | $ 312 | $ 312 |
BUSINESSES HELD FOR SALE AND _6
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS - Financial Information for Discontinued Operations (Details) - USD ($) $ in Millions | Feb. 25, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS | |||||||
Sales of goods and services | $ 4,478 | $ 6,602 | $ 16,596 | $ 19,355 | |||
GE Capital revenues and other income (loss) | 16 | 152 | 7 | (1,316) | |||
Cost of goods and services sold | (3,686) | (5,419) | (13,795) | (16,082) | |||
Other costs and expenses | (686) | (1,048) | (2,550) | (3,301) | |||
Earnings (loss) of discontinued operations, net of taxes | 107 | 155 | 436 | (1,529) | |||
Gain (loss) on disposal before income taxes | (8,677) | 0 | (5,160) | 4 | |||
Earnings (loss) of discontinued operations before income taxes | 121 | 287 | 258 | (1,343) | |||
Benefit (provision) for income taxes | (14) | (132) | 178 | (186) | |||
Benefit (provision) for income taxes | 477 | 0 | (488) | (1) | |||
Gain (loss) on disposal, net of taxes | (8,201) | 0 | (5,648) | 3 | |||
Earnings (loss) from discontinued operations, net of taxes | (8,093) | 155 | (5,212) | (1,526) | |||
Earnings (loss) from discontinued operations attributable to the Company after income taxes | 61 | 148 | 378 | (1,432) | |||
Assets | |||||||
Assets | 4,178 | 4,178 | $ 63,853 | ||||
Liabilities | |||||||
Liabilities | 387 | 387 | 19,281 | ||||
Baker Hughes disposal group | |||||||
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS | |||||||
Sales of goods and services | 4,478 | 5,670 | 16,047 | 16,609 | |||
GE Capital revenues and other income (loss) | 0 | 0 | 0 | 0 | |||
Cost of goods and services sold | (3,686) | (4,767) | (13,317) | (14,140) | |||
Other costs and expenses | (618) | (830) | (2,386) | (2,530) | |||
Earnings (loss) of discontinued operations, net of taxes | 125 | (5) | 179 | (185) | |||
Gain (loss) on disposal before income taxes | (8,667) | 0 | (8,667) | 0 | |||
Earnings (loss) of discontinued operations before income taxes | 175 | 73 | 345 | (61) | |||
Benefit (provision) for income taxes | (50) | (78) | (165) | (124) | |||
Benefit (provision) for income taxes | 477 | 0 | 477 | 0 | |||
Gain (loss) on disposal, net of taxes | (8,190) | 0 | (8,190) | 0 | |||
Earnings (loss) from discontinued operations, net of taxes | (8,066) | (5) | (8,011) | (185) | |||
Transportation and Other | |||||||
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS | |||||||
Sales of goods and services | 0 | 932 | 549 | 2,746 | |||
GE Capital revenues and other income (loss) | 0 | 0 | 0 | 0 | |||
Cost of goods and services sold | 0 | (652) | (478) | (1,942) | |||
Other costs and expenses | (16) | (127) | (22) | (473) | |||
Earnings (loss) of discontinued operations, net of taxes | (9) | 120 | 36 | 237 | |||
Gain (loss) on disposal before income taxes | 0 | 0 | 3,471 | 0 | |||
Earnings (loss) of discontinued operations before income taxes | (16) | 152 | 49 | 331 | |||
Benefit (provision) for income taxes | 6 | (32) | (13) | (93) | |||
Benefit (provision) for income taxes | 0 | 0 | (963) | 0 | |||
Gain (loss) on disposal, net of taxes | 0 | $ 2,508 | 0 | 2,508 | 0 | ||
Earnings (loss) from discontinued operations, net of taxes | (9) | 120 | 2,544 | 237 | |||
GE Capital | |||||||
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS | |||||||
Sales of goods and services | 0 | 0 | 0 | 0 | |||
GE Capital revenues and other income (loss) | 16 | 152 | 7 | (1,316) | |||
Cost of goods and services sold | 0 | 0 | 0 | 0 | |||
Other costs and expenses | (53) | (90) | (142) | (298) | |||
Earnings (loss) of discontinued operations, net of taxes | (8) | 40 | 220 | (1,582) | |||
Gain (loss) on disposal before income taxes | (10) | 0 | 36 | 4 | |||
Earnings (loss) of discontinued operations before income taxes | (37) | 61 | (136) | (1,614) | |||
Benefit (provision) for income taxes | 29 | (22) | 356 | 32 | |||
Benefit (provision) for income taxes | 0 | 0 | (2) | (1) | |||
Gain (loss) on disposal, net of taxes | (10) | 0 | 35 | 3 | |||
Earnings (loss) from discontinued operations, net of taxes | (18) | $ 40 | 255 | $ (1,579) | |||
Discontinued Operations | |||||||
Assets | |||||||
Cash, cash equivalents and restricted cash | 602 | 602 | 4,424 | ||||
Investment securities | 207 | 207 | 522 | ||||
Current receivables | 81 | 81 | 6,258 | ||||
Inventories | 0 | 0 | 5,419 | ||||
Financing receivables held for sale (Polish mortgage portfolio) | 2,542 | 2,542 | 2,745 | ||||
Property, plant, and equipment – net and Operating leases | 139 | 139 | 7,139 | ||||
Goodwill and intangible assets - net | 0 | 0 | 31,622 | ||||
Deferred income taxes | 312 | 312 | 1,174 | ||||
All other assets | 296 | 296 | 4,550 | ||||
Assets | 4,178 | 4,178 | 63,853 | ||||
Liabilities | |||||||
Accounts payable and Progress collections and deferred income | 32 | 32 | 6,806 | ||||
Operating lease liabilities | 217 | 217 | 0 | ||||
Other GE current liabilities | 51 | 51 | 2,002 | ||||
All other liabilities | 88 | 88 | 10,473 | ||||
Liabilities | 387 | $ 387 | 19,281 | ||||
Discontinued Operations | Baker Hughes disposal group | |||||||
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS | |||||||
Gain (loss) on disposal before income taxes | 8,667 | ||||||
Gain (loss) on disposal, net of taxes | $ 8,190 | ||||||
Assets | |||||||
Assets | 54,596 | ||||||
Liabilities | |||||||
Liabilities | 15,535 | ||||||
Discontinued Operations | Transportation and Other | |||||||
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS | |||||||
Gain (loss) on disposal before income taxes | $ 3,471 | ||||||
Gain (loss) on disposal, net of taxes | $ 2,508 | ||||||
Assets | |||||||
Assets | 4,573 | ||||||
Liabilities | |||||||
Liabilities | $ 1,871 |
INVESTMENT SECURITIES - Schedul
INVESTMENT SECURITIES - Schedule of Investment Securities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Gross unrealized gains | $ 6,008 | $ 2,792 |
Gross unrealized losses | (42) | (561) |
Equity | 9,476 | 107 |
Amortized cost | 42,259 | 31,277 |
Estimated fair value | 48,225 | 33,508 |
U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 22,945 | 21,306 |
Gross unrealized gains | 4,728 | 2,257 |
Gross unrealized losses | (20) | (357) |
Estimated fair value | 27,653 | 23,206 |
Non-U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 2,212 | 1,906 |
Gross unrealized gains | 262 | 53 |
Gross unrealized losses | (1) | (76) |
Estimated fair value | 2,473 | 1,883 |
State and municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 3,207 | 3,320 |
Gross unrealized gains | 705 | 367 |
Gross unrealized losses | (19) | (54) |
Estimated fair value | 3,893 | 3,633 |
Mortgage and asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 3,000 | 3,325 |
Gross unrealized gains | 158 | 51 |
Gross unrealized losses | (3) | (54) |
Estimated fair value | 3,155 | 3,322 |
Government and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 1,420 | 1,314 |
Gross unrealized gains | 155 | 62 |
Gross unrealized losses | 0 | (20) |
Estimated fair value | $ 1,575 | $ 1,357 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investment fair value | $ 9,476 | $ 9,476 | $ 107 | ||
Net unrealized gains (losses) recorded to earnings | (89) | $ (57) | (131) | $ 210 | |
Proceeds from investment securities sales and early redemptions by issuers | 2,318 | 1,483 | 6,652 | 2,173 | |
Debt and equity securities, realized gain | 10 | 11 | 86 | 49 | |
Debt and equity securities, realized losses | (75) | $ (32) | (181) | $ (35) | |
Gross unrealized losses, less than 12 months | (10) | (10) | (310) | ||
Gross unrealized losses, 12 months or more | (32) | (32) | (251) | ||
Estimated fair value, less than 12 months | 791 | 791 | 7,048 | ||
Estimated fair value, 12 months or more | 333 | 333 | 3,856 | ||
Equity securities without readily determinable fair values | 586 | 586 | 542 | ||
Level 3 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investments with a fair value | $ 4,971 | $ 4,971 | $ 4,013 | ||
Baker Hughes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Ownership interest (as a percent) | 36.80% | 36.80% | |||
Investment fair value | $ 9,356 | $ 9,356 | |||
Net unrealized gains (losses) recorded to earnings | (125) | ||||
Wabtec | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Proceeds from shares sold | 1,584 | ||||
Equity securities, realized losses | $ (70) | $ (130) |
INVESTMENT SECURITIES - Contrac
INVESTMENT SECURITIES - Contractual Maturities (Details) $ in Millions | Sep. 30, 2019USD ($) |
Amortized cost | |
Within one year | $ 390 |
After one year through five years | 2,808 |
After five years through ten years | 6,636 |
After ten years | 19,950 |
Estimated fair value | |
Within one year | 396 |
After one year through five years | 2,964 |
After five years through ten years | 7,628 |
After ten years | $ 24,606 |
CURRENT AND LONG-TERM RECEIVA_3
CURRENT AND LONG-TERM RECEIVABLES - Schedule of Current Receivables (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Customer receivables | $ 12,225 | $ 10,742 | |
Sundry receivables | 4,638 | 4,573 | |
Allowance for losses | (845) | (670) | |
Total current receivables | 16,018 | 14,645 | |
GE Capital | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
DPP balance | 368 | 468 | |
GE | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Customer receivables | 8,444 | 6,355 | |
Sundry receivables | 5,059 | 4,569 | |
Allowance for losses | (845) | (662) | |
Total current receivables | [1] | $ 12,657 | $ 10,262 |
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
CURRENT AND LONG-TERM RECEIVA_4
CURRENT AND LONG-TERM RECEIVABLES - Sales of GE Current Customer Receivables, Narrative (Details) - Current Receivables - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
GE Capital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impact on CFOA | $ 1,847 | $ 2,718 |
GE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of receivables sold | 59.00% | 70.00% |
CURRENT AND LONG-TERM RECEIVA_5
CURRENT AND LONG-TERM RECEIVABLES - Sales of GE Current Customer Receivables (Details) - GE - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Current Receivables | GE Capital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at beginning of period | $ 4,386 | $ 9,656 |
GE sales | 30,383 | 37,349 |
GE Capital sales to third parties | (20,505) | (22,212) |
Collections and other | (10,746) | (19,395) |
Reclassification from long-term customer receivables | 265 | 492 |
Balance at end of period | 3,782 | 5,889 |
Current Receivables | Third Parties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at beginning of period | 7,880 | 5,710 |
GE sales | 3,002 | 3,417 |
GE Capital sales to third parties | 20,505 | 22,212 |
Collections and other | (25,004) | (24,431) |
Reclassification from long-term customer receivables | 0 | 0 |
Balance at end of period | 6,382 | 6,907 |
Current Receivables with Recourse | GE Capital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at end of period | $ 866 | $ 1,675 |
CURRENT AND LONG-TERM RECEIVA_6
CURRENT AND LONG-TERM RECEIVABLES - Schedule of Long-term Receivables (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Long-term customer receivables | $ 1,181 | $ 1,442 |
Long-term sundry receivables | 1,545 | 1,180 |
Allowance for losses | (110) | (145) |
Total long-term receivables | 2,616 | 2,477 |
GE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Long-term customer receivables | 653 | 559 |
Long-term sundry receivables | 1,743 | 1,519 |
Allowance for losses | (110) | (145) |
Total long-term receivables | $ 2,285 | $ 1,933 |
CURRENT AND LONG-TERM RECEIVA_7
CURRENT AND LONG-TERM RECEIVABLES - Sales of GE Long-Term Receivables, Narrative (Details) - Noncurrent Receivables - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average remaining duration period | 3 years | |
GE Capital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impact on CFOA | $ 380 | $ 629 |
CURRENT AND LONG-TERM RECEIVA_8
CURRENT AND LONG-TERM RECEIVABLES - Sales of GE Long-term Receivables (Details) - GE Capital - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Noncurrent Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at beginning of period | $ 883 | $ 1,947 |
GE sales to GE Capital | 0 | 123 |
Sales, collections, accretion and other | (90) | (272) |
Reclassification to current customer receivables | (265) | (492) |
Balance at end of period | 528 | 1,307 |
Noncurrent Receivables with Recourse | GE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at end of period | $ 402 | $ 797 |
CURRENT AND LONG-TERM RECEIVA_9
CURRENT AND LONG-TERM RECEIVABLES - Unconsolidated Receivables Facilities (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2019USD ($)receivable_facility | Sep. 30, 2018USD ($) | |
GE Capital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of receivables facility | receivable_facility | 2 | |
Facility program size | $ 5,100 | |
Third Parties | GE | Current Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Customer receivables sold to receivables facilities | 16,062 | $ 17,115 |
Total cash purchase price for customer receivables | 15,824 | 13,096 |
Cash collections re-invested to purchase customer receivables | 13,286 | 11,518 |
Non-cash increases to deferred purchase price | 168 | 3,935 |
Cash payments received on deferred purchase price | $ 268 | $ 3,905 |
CURRENT AND LONG-TERM RECEIV_10
CURRENT AND LONG-TERM RECEIVABLES - Consolidated Securitization Entities (Details) - Consolidated VIE $ in Millions | 9 Months Ended | |
Sep. 30, 2019USD ($)entity | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | $ 1,539 | $ 2,321 |
Liabilities | $ 1,007 | 1,611 |
GE Capital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of VIEs | entity | 3 | |
GE Capital | Receivables | Current Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | $ 1,976 | 2,141 |
GE Capital | Receivables | Noncurrent Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | 456 | 678 |
GE Capital | Debt | Debt Facilities | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Liabilities | $ 1,498 | $ 1,875 |
FINANCING RECEIVABLES AND ALL_3
FINANCING RECEIVABLES AND ALLOWANCES - Schedule of Financing Receivables, Net (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables – net | $ 3,321 | $ 7,699 |
Financing Receivables Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 3,371 | 7,757 |
Allowance for losses | (50) | (58) |
Financing receivables – net | 3,321 | 7,699 |
Financing Receivables Portfolio Segment | Loans, net of deferred income | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 1,251 | 5,118 |
Financing Receivables Portfolio Segment | Investment in financing leases, net of deferred income | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 2,120 | 2,639 |
Financing Receivables Portfolio Segment | GE Capital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 7,759 | 13,656 |
Allowance for losses | (12) | (28) |
Financing receivables – net | 7,748 | 13,628 |
Financing Receivables Portfolio Segment | GE Capital | Loans, net of deferred income | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 5,639 | 10,834 |
Financing Receivables Portfolio Segment | GE Capital | Investment in financing leases, net of deferred income | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | $ 2,120 | $ 2,822 |
FINANCING RECEIVABLES AND ALL_4
FINANCING RECEIVABLES AND ALLOWANCES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance lease income | $ 43 | $ 65 | $ 135 | $ 193 | ||
Financing receivable | 3,321 | 3,321 | $ 7,699 | |||
Financing Receivables Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivable | 3,321 | 3,321 | 7,699 | |||
GECAS | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivable | [1] | $ 0 | $ 0 | $ 0 | ||
GE Capital | Financing Receivables Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Percent of financing receivables over 30 days past due | 3.30% | 3.30% | 2.40% | |||
Percent of financing receivables over 90 days past due | 2.30% | 2.30% | 1.80% | |||
Percent of financing receivables on nonaccrual | 3.70% | 3.70% | 0.90% | |||
Financing receivable | $ 7,748 | $ 7,748 | $ 13,628 | |||
GE Capital | Financing Receivables Portfolio Segment | Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivable | 385 | 385 | 688 | |||
Financing receivables on nonaccrual | 93 | $ 93 | $ 96 | |||
GE Capital | GECAS | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivables classified as held for sale | $ 3,849 | |||||
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and work in process | $ 8,983 | $ 8,057 |
Finished goods | 6,025 | 5,548 |
Unbilled shipments | 195 | 197 |
Total inventories | $ 15,203 | $ 13,803 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES - Property, Plant and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||||
Original cost | $ 75,196 | $ 75,196 | $ 75,618 | ||
Less accumulated depreciation and amortization | (32,310) | (32,310) | (32,007) | ||
Property, plant and equipment – net | 42,886 | 42,886 | $ 43,611 | ||
Consolidated depreciation and amortization on property, plant and equipment | 1,004 | $ 1,257 | 2,969 | $ 3,357 | |
Operating lease income | 934 | 997 | 2,883 | 3,003 | |
Fixed lease income | 755 | 828 | 2,293 | 2,457 | |
Variable lease income | $ 178 | $ 169 | $ 589 | $ 546 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES - Operating Lease Assets and Liabilities (Details) $ in Millions | Sep. 30, 2019USD ($) |
Property, Plant and Equipment [Abstract] | |
Right-of-use assets | $ 2,970 |
Lease liabilities | $ 3,169 |
Lease term | 12 years |
PROPERTY, PLANT AND EQUIPMENT_5
PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES - Operating Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Long-term (fixed) | $ 180 | $ 232 | $ 625 | $ 733 |
Long-term (Variable) | 41 | 26 | 111 | 135 |
Short-term | 60 | 34 | 150 | 100 |
Total Operating lease expense | $ 281 | $ 292 | $ 887 | $ 968 |
PROPERTY, PLANT AND EQUIPMENT_6
PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES - Maturity of Lease Liabilities (Details) $ in Millions | Sep. 30, 2019USD ($) |
Property, Plant and Equipment [Abstract] | |
2019 (excluding nine months ended September 30, 2019) | $ 212 |
2020 | 769 |
2021 | 636 |
2022 | 530 |
2023 | 429 |
Thereafter | 1,195 |
Total undiscounted lease payments | 3,771 |
Less: imputed interest | (602) |
Total lease liability as of September 30, 2019 | $ 3,169 |
PROPERTY, PLANT AND EQUIPMENT_7
PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES - Supplemental Information Related to Operating Leases (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Property, Plant and Equipment [Abstract] | |
Operating cash flows used for operating leases | $ 683 |
Right-of-use assets obtained in exchange for new lease liabilities | $ 459 |
Weighted-average remaining lease term | 6 years 9 months 18 days |
Weighted-average discount rate | 5.10% |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill | ||||
Balance at beginning of period | $ 33,974 | |||
Dispositions and classification to held for sale | (5,571) | |||
Impairments | $ (740) | $ (21,973) | (1,484) | $ (21,973) |
Currency exchange and other | (253) | |||
Balance at end of period | 26,666 | 26,666 | ||
Operating Segments | Power | ||||
Goodwill | ||||
Balance at beginning of period | 139 | |||
Dispositions and classification to held for sale | 0 | |||
Impairments | 0 | |||
Currency exchange and other | 6 | |||
Balance at end of period | 145 | 145 | ||
Operating Segments | Renewable Energy | ||||
Goodwill | ||||
Balance at beginning of period | 4,730 | |||
Dispositions and classification to held for sale | 0 | |||
Impairments | (1,484) | |||
Currency exchange and other | 33 | |||
Balance at end of period | 3,279 | 3,279 | ||
Operating Segments | Aviation | ||||
Goodwill | ||||
Balance at beginning of period | 9,839 | |||
Dispositions and classification to held for sale | 0 | |||
Impairments | 0 | |||
Currency exchange and other | (31) | |||
Balance at end of period | 9,808 | 9,808 | ||
Operating Segments | Healthcare | ||||
Goodwill | ||||
Balance at beginning of period | 17,226 | |||
Dispositions and classification to held for sale | (5,532) | |||
Impairments | 0 | |||
Currency exchange and other | 28 | |||
Balance at end of period | 11,722 | 11,722 | ||
Operating Segments | Capital | ||||
Goodwill | ||||
Balance at beginning of period | 904 | |||
Dispositions and classification to held for sale | (39) | |||
Impairments | 0 | |||
Currency exchange and other | (25) | |||
Balance at end of period | 839 | 839 | ||
Corporate | ||||
Goodwill | ||||
Balance at beginning of period | 1,136 | |||
Dispositions and classification to held for sale | 0 | |||
Impairments | 0 | |||
Currency exchange and other | (263) | |||
Balance at end of period | $ 873 | $ 873 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill, Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Goodwill [Line Items] | ||||||
Goodwill impairments | $ 740,000,000 | $ 21,973,000,000 | $ 1,484,000,000 | $ 21,973,000,000 | ||
Goodwill | 26,666,000,000 | 26,666,000,000 | $ 33,974,000,000 | |||
Additive Reporting Unit | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 1,097,000,000 | 1,097,000,000 | ||||
Capital | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 839,000,000 | 839,000,000 | ||||
Grid Solutions equipment and services | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairments | $ 744,000,000 | |||||
Goodwill | 0 | |||||
Power Generation and Grid Solutions | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairments | $ 21,973,000,000 | 22,136,000,000 | ||||
Hydro Reporting Unit | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairments | 740,000,000 | |||||
Goodwill | 0 | 0 | ||||
Operating Segments | Power | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairments | 0 | |||||
Goodwill | 145,000,000 | 145,000,000 | 139,000,000 | |||
Goodwill transfers in (out) | (1,618,000,000) | |||||
Operating Segments | Renewable Energy | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairments | 1,484,000,000 | |||||
Goodwill | 3,279,000,000 | 3,279,000,000 | 4,730,000,000 | |||
Goodwill transfers in (out) | 744,000,000 | |||||
Corporate | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairments | 0 | |||||
Goodwill | $ 873,000,000 | $ 873,000,000 | $ 1,136,000,000 | |||
Goodwill transfers in (out) | $ 874,000,000 | |||||
Discount rate | Minimum | ||||||
Goodwill [Line Items] | ||||||
Goodwill, measurement input | 0.096 | 0.096 | ||||
Discount rate | Maximum | ||||||
Goodwill [Line Items] | ||||||
Goodwill, measurement input | 0.220 | 0.220 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets - Net (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible assets subject to amortization | $ 10,766 | $ 12,178 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets, Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets subject to amortization | $ 10,766 | $ 10,766 | $ 12,178 | ||
Amortization of intangible assets | 496 | $ 831 | 1,220 | $ 1,740 | |
Power | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Non-cash impairment charge of intangibles | 103 | $ 428 | 103 | $ 428 | |
BioPharma | Held-for-sale | Healthcare | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets subject to amortization | $ 526 | $ 526 |
REVENUES - Equipment and Servic
REVENUES - Equipment and Services Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Industrial Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ 21,383 | $ 20,665 | $ 62,293 | $ 62,908 |
Industrial Segment | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 11,020 | 10,283 | 30,545 | 30,602 |
Industrial Segment | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 10,363 | 10,383 | 31,748 | 32,305 |
Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,926 | 4,559 | 13,224 | 16,768 |
Power | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 1,434 | 1,334 | 4,473 | 6,224 |
Power | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,492 | 3,225 | 8,751 | 10,545 |
Renewable Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,425 | 3,920 | 10,590 | 9,642 |
Renewable Energy | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,609 | 3,414 | 8,457 | 7,979 |
Renewable Energy | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 816 | 505 | 2,133 | 1,663 |
Aviation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 8,109 | 7,480 | 23,940 | 22,111 |
Aviation | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,149 | 2,833 | 9,295 | 8,281 |
Aviation | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,960 | 4,646 | 14,645 | 13,830 |
Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,923 | 4,707 | 14,540 | 14,387 |
Healthcare | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,828 | 2,700 | 8,320 | 8,119 |
Healthcare | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ 2,095 | $ 2,006 | $ 6,220 | $ 6,268 |
REVENUES - Sub-Segment Revenues
REVENUES - Sub-Segment Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Consolidated Revenues | $ 23,360 | $ 23,392 | $ 68,976 | $ 70,513 |
Industrial Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 21,383 | 20,665 | 62,293 | 62,908 |
Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,926 | 4,559 | 13,224 | 16,768 |
Renewable Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,425 | 3,920 | 10,590 | 9,642 |
Aviation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 8,109 | 7,480 | 23,940 | 22,111 |
Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,923 | 4,707 | 14,540 | 14,387 |
Operating segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Revenues | 23,480 | 23,138 | 68,938 | 69,982 |
Operating segments | Industrial Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 21,383 | 20,665 | 62,293 | 62,908 |
Operating segments | Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,926 | 4,559 | 13,224 | 16,768 |
Operating segments | Power | Gas Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,732 | 2,678 | 9,242 | 9,719 |
Operating segments | Power | Power Portfolio | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 1,194 | 1,882 | 3,982 | 7,050 |
Operating segments | Renewable Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,425 | 3,920 | 10,590 | 9,642 |
Operating segments | Renewable Energy | Onshore Wind | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,193 | 2,523 | 7,084 | 5,119 |
Operating segments | Renewable Energy | Grid Solutions equipment and services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 1,004 | 1,059 | 2,876 | 3,483 |
Operating segments | Renewable Energy | Hydro and Offshore Wind | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 228 | 337 | 630 | 1,041 |
Operating segments | Aviation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 8,109 | 7,480 | 23,940 | 22,111 |
Operating segments | Aviation | Commercial Engines & Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 5,997 | 5,636 | 17,796 | 16,443 |
Operating segments | Aviation | Military | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 1,061 | 898 | 3,073 | 2,942 |
Operating segments | Aviation | Systems & Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 1,050 | 946 | 3,071 | 2,726 |
Operating segments | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,923 | 4,707 | 14,540 | 14,387 |
Operating segments | Healthcare | Healthcare Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,642 | 3,566 | 10,664 | 10,877 |
Operating segments | Healthcare | Life Sciences | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 1,280 | 1,140 | 3,875 | 3,509 |
Operating segments | Capital | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Revenues | 2,097 | 2,473 | 6,645 | 7,075 |
Corporate items and eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Revenues | $ (120) | $ 254 | $ 39 | $ 531 |
REVENUES - Remaining Performanc
REVENUES - Remaining Performance Obligation (Details) $ in Millions | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 240,536 |
Equipment | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 45,809 |
Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 194,727 |
REVENUES - Remaining Performa_2
REVENUES - Remaining Performance Obligation (Percentage and Period) (Details) | Sep. 30, 2019 |
Equipment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 53.00% |
Performance obligations expected to be satisfied, expected timing | 1 year |
Equipment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 66.00% |
Performance obligations expected to be satisfied, expected timing | 2 years |
Equipment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 71.00% |
Performance obligations expected to be satisfied, expected timing | 5 years |
Services | 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) | 11.00% |
Performance obligations expected to be satisfied, expected timing | 1 year |
Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 48.00% |
Performance obligations expected to be satisfied, expected timing | 5 years |
Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01 | |
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 | 10 years |
Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2035-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 91.00% |
Performance obligations expected to be satisfied, expected timing | 15 years |
CONTRACT AND OTHER DEFERRED A_3
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Capitalized Contract Cost [Line Items] | ||
Decrease in contract and other deferred assets | $ 298 | |
Revenue recognized included in contract liability | 9,565 | $ 10,692 |
Aviation | ||
Capitalized Contract Cost [Line Items] | ||
Increase (decrease) in progress collections and deferred income due to timing of revenue recognition | 6 | |
Long-term | Services | ||
Capitalized Contract Cost [Line Items] | ||
Decrease due to billings | 8,306 | |
Increase due to revenues recognized | 8,162 | |
Long-term | Services | Aviation | ||
Capitalized Contract Cost [Line Items] | ||
Decrease due to billings | 61 | |
Long-term | Services | Power | ||
Capitalized Contract Cost [Line Items] | ||
Decrease due to billings | $ 57 |
CONTRACT AND OTHER DEFERRED A_4
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME - Schedule of Contract Assets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Contract and other deferred assets | $ 17,133 | $ 17,431 | |
GE | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Contract and other deferred assets | [1] | 17,166 | 17,431 |
Operating Segments | GE | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 10,573 | 10,880 | |
Deferred inventory costs | 3,186 | 3,309 | |
Nonrecurring engineering costs | 2,257 | 2,095 | |
Customer advances and other | 1,118 | 1,146 | |
Contract and other deferred assets | 17,133 | 17,431 | |
Operating Segments | GE | Service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues in excess of billings | 10,247 | 10,780 | |
Billings in excess of revenues | (4,853) | (4,989) | |
Operating Segments | GE | Service agreements | Long-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 5,394 | 5,790 | |
Operating Segments | GE | Service agreements | Short-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 804 | 690 | |
Operating Segments | GE | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 4,374 | 4,400 | |
Operating Segments | GE | Power | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 6,628 | 6,603 | |
Deferred inventory costs | 904 | 1,003 | |
Nonrecurring engineering costs | 42 | 43 | |
Customer advances and other | 1 | 0 | |
Contract and other deferred assets | 7,576 | 7,650 | |
Operating Segments | GE | Power | Service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues in excess of billings | 5,346 | 5,368 | |
Billings in excess of revenues | (1,560) | (1,693) | |
Operating Segments | GE | Power | Service agreements | Long-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 3,787 | 3,675 | |
Operating Segments | GE | Power | Service agreements | Short-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 172 | 167 | |
Operating Segments | GE | Power | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 2,670 | 2,761 | |
Operating Segments | GE | Aviation | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 2,042 | 2,468 | |
Deferred inventory costs | 357 | 673 | |
Nonrecurring engineering costs | 2,107 | 1,916 | |
Customer advances and other | 1,149 | 1,146 | |
Contract and other deferred assets | 5,655 | 6,204 | |
Operating Segments | GE | Aviation | Service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues in excess of billings | 4,901 | 5,412 | |
Billings in excess of revenues | (3,293) | (3,297) | |
Operating Segments | GE | Aviation | Service agreements | Long-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 1,607 | 2,115 | |
Operating Segments | GE | Aviation | Service agreements | Short-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 343 | 272 | |
Operating Segments | GE | Aviation | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 93 | 80 | |
Operating Segments | GE | Renewable Energy | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 1,288 | 1,174 | |
Deferred inventory costs | 1,574 | 1,267 | |
Nonrecurring engineering costs | 62 | 85 | |
Customer advances and other | 0 | 0 | |
Contract and other deferred assets | 2,924 | 2,525 | |
Operating Segments | GE | Renewable Energy | Service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues in excess of billings | 0 | 0 | |
Billings in excess of revenues | 0 | 0 | |
Operating Segments | GE | Renewable Energy | Service agreements | Long-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 0 | 0 | |
Operating Segments | GE | Renewable Energy | Service agreements | Short-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 0 | 0 | |
Operating Segments | GE | Renewable Energy | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 1,288 | 1,174 | |
Operating Segments | GE | Healthcare and Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 614 | 635 | |
Deferred inventory costs | 351 | 365 | |
Nonrecurring engineering costs | 45 | 51 | |
Customer advances and other | (32) | 0 | |
Contract and other deferred assets | 978 | 1,052 | |
Operating Segments | GE | Healthcare and Other | Service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues in excess of billings | 0 | 0 | |
Billings in excess of revenues | 0 | 0 | |
Operating Segments | GE | Healthcare and Other | Service agreements | Long-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 0 | 0 | |
Operating Segments | GE | Healthcare and Other | Service agreements | Short-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 290 | 251 | |
Operating Segments | GE | Healthcare and Other | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | $ 324 | $ 384 | |
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
CONTRACT AND OTHER DEFERRED A_5
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME - Progress Collections and Deferred Income (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Capitalized Contract Cost [Line Items] | |||
Total progress collections & deferred income | $ 19,041 | $ 18,983 | |
GE | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections & deferred income | [1] | 19,245 | 19,239 |
Operating Segments | GE | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 15,794 | 15,758 | |
Deferred income | 3,450 | 3,480 | |
Total progress collections & deferred income | 19,245 | 19,239 | |
Operating Segments | GE | Equipment | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 6,768 | 6,975 | |
Operating Segments | GE | Other | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 9,026 | 8,783 | |
Operating Segments | GE | Power | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 6,133 | 6,227 | |
Deferred income | 40 | 112 | |
Total progress collections & deferred income | 6,174 | 6,339 | |
Operating Segments | GE | Power | Equipment | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 5,568 | 5,536 | |
Operating Segments | GE | Power | Other | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 566 | 691 | |
Operating Segments | GE | Aviation | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 4,795 | 4,148 | |
Deferred income | 1,447 | 1,338 | |
Total progress collections & deferred income | 6,241 | 5,486 | |
Operating Segments | GE | Aviation | Equipment | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 95 | 114 | |
Operating Segments | GE | Aviation | Other | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 4,700 | 4,034 | |
Operating Segments | GE | Renewable Energy | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 4,402 | 4,883 | |
Deferred income | 290 | 260 | |
Total progress collections & deferred income | 4,692 | 5,143 | |
Operating Segments | GE | Renewable Energy | Equipment | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 1,105 | 1,325 | |
Operating Segments | GE | Renewable Energy | Other | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 3,297 | 3,557 | |
Operating Segments | GE | Healthcare and Other | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 464 | 500 | |
Deferred income | 1,673 | 1,770 | |
Total progress collections & deferred income | 2,137 | 2,271 | |
Operating Segments | GE | Healthcare and Other | Equipment | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 0 | 0 | |
Operating Segments | GE | Healthcare and Other | Other | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | $ 464 | $ 500 | |
[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 ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total borrowings | $ 93,244 | $ 103,599 |
Short-term borrowings | ||
Short-term borrowings | 17,046 | 12,776 |
Eliminations | (3,842) | (4,262) |
Long-term borrowings | ||
Borrowings | 74,701 | 88,949 |
Eliminations | (17,255) | (19,892) |
GE | ||
Short-term borrowings | ||
Short-term borrowings | 12,775 | 9,354 |
Long-term borrowings | ||
Borrowings | 41,311 | 52,858 |
GE | Senior notes | ||
Long-term borrowings | ||
Borrowings | 14,690 | 20,387 |
GE | Senior notes assumed by GE | ||
Long-term borrowings | ||
Borrowings | 23,384 | 29,218 |
GE | Subordinated notes assumed by GE | ||
Long-term borrowings | ||
Borrowings | 2,820 | 2,836 |
GE | Other | ||
Long-term borrowings | ||
Borrowings | 418 | 417 |
GE | Commercial paper | ||
Short-term borrowings | ||
Short-term borrowings | 2,997 | 3,005 |
GE | Current portion of long-term borrowings | ||
Short-term borrowings | ||
Short-term borrowings | 764 | 60 |
GE | Current portion of long-term borrowings assumed by GE | ||
Short-term borrowings | ||
Short-term borrowings | 7,310 | 4,207 |
GE | Other | ||
Short-term borrowings | ||
Short-term borrowings | 1,703 | 2,081 |
GE Capital | ||
Short-term borrowings | ||
Short-term borrowings | 8,113 | 7,684 |
Long-term borrowings | ||
Borrowings | 50,645 | 55,982 |
GE Capital | Senior notes | ||
Long-term borrowings | ||
Borrowings | 32,537 | 35,105 |
GE Capital | Subordinated notes assumed by GE | ||
Long-term borrowings | ||
Borrowings | 199 | 165 |
GE Capital | Intercompany payable to GE | ||
Long-term borrowings | ||
Borrowings | 17,255 | 19,828 |
GE Capital | Other | ||
Long-term borrowings | ||
Borrowings | 654 | 885 |
GE Capital | Non-recourse borrowings of consolidated securitization entities | ||
Long-term borrowings | ||
Borrowings | 1,498 | 1,875 |
GE Capital | Current portion of long-term borrowings | ||
Short-term borrowings | ||
Short-term borrowings | 4,601 | 3,984 |
GE Capital | Intercompany payable to GE | ||
Short-term borrowings | ||
Short-term borrowings | 2,990 | 2,684 |
GE Capital | Other | ||
Short-term borrowings | ||
Short-term borrowings | $ 522 | $ 1,015 |
BORROWINGS - Narrative (Details
BORROWINGS - Narrative (Details) € in Millions, $ in Millions | Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2019EUR (€) |
GE Capital | |||
Guarantor Obligations [Line Items] | |||
Receivable from related parties | $ 20,244 | $ 20,244 | |
GE | |||
Guarantor Obligations [Line Items] | |||
Total borrowings | 33,842 | 33,842 | |
GE | GE Issued Borrowings | |||
Guarantor Obligations [Line Items] | |||
Total borrowings | 20,572 | 20,572 | |
GE | Intercompany Loan | GE Capital | |||
Guarantor Obligations [Line Items] | |||
Total borrowings | 13,269 | 13,269 | |
Short-term borrowings | 4,320 | 4,320 | |
Long-term borrowings | 8,949 | 8,949 | |
Repayment of intercompany loans | 480 | ||
GE Capital | Non-recourse borrowings of consolidated securitization entities | |||
Guarantor Obligations [Line Items] | |||
Debt assumed by GE upon merger | 34,807 | 34,807 | |
GE Capital | GE Capital Exit Plan | |||
Guarantor Obligations [Line Items] | |||
Total borrowings | 33,514 | 33,514 | |
Short-term borrowings | 7,310 | 7,310 | |
Long-term borrowings | 26,204 | 26,204 | |
Senior notes | Notes Repurchased | |||
Guarantor Obligations [Line Items] | |||
Total borrowings | 4,787 | 4,787 | |
Principal amount purchased | 4,846 | 4,846 | |
Consideration paid for debt purchase | 5,031 | 5,031 | |
Loss on repurchase of debt | 255 | ||
Accrued fees and other costs | 12 | 12 | |
Senior notes | Senior Unsecured Notes due 2044 | |||
Guarantor Obligations [Line Items] | |||
Principal amount purchased | $ 1,250 | $ 1,250 | |
Interest rate | 4.50% | 4.50% | 4.50% |
Senior notes | Senior Unsecured Notes due 2042 | |||
Guarantor Obligations [Line Items] | |||
Principal amount purchased | $ 1,144 | $ 1,144 | |
Interest rate | 4.125% | 4.125% | 4.125% |
Senior notes | Senior Unsecured Notes due 2037 | |||
Guarantor Obligations [Line Items] | |||
Principal amount purchased | $ 1,101 | $ 1,101 | € 992 |
Interest rate | 2.125% | 2.125% | 2.125% |
Senior notes | Senior Unsecured Notes due 2029 | |||
Guarantor Obligations [Line Items] | |||
Principal amount purchased | $ 870 | $ 870 | € 784 |
Interest rate | 1.50% | 1.50% | 1.50% |
Senior notes | Senior Unsecured Notes due 2027 | |||
Guarantor Obligations [Line Items] | |||
Principal amount purchased | $ 415 | $ 415 | € 374 |
Interest rate | 1.875% | 1.875% | 1.875% |
Senior notes | Senior Unsecured Notes due 2023 | |||
Guarantor Obligations [Line Items] | |||
Principal amount purchased | $ 66 | $ 66 | € 59 |
Interest rate | 1.25% | 1.25% | 1.25% |
INSURANCE LIABILITIES AND ANN_3
INSURANCE LIABILITIES AND ANNUITY BENEFITS - Schedule of Investment Contracts, Insurance Liabilities and Insurance Annuity Benefits (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Future policy benefit reserves | $ 32,433 | $ 27,940 |
Claim reserves | 5,520 | 5,324 |
Investment contracts | 2,239 | 2,388 |
Unearned premiums and other | 358 | 342 |
Future policy benefit reserves, investment contracts, claim reserves and unearned premiums and other | 40,550 | 35,994 |
Eliminations | (466) | (432) |
Total | 40,084 | 35,562 |
Other adjustments | 5,903 | 2,247 |
Long-term care insurance contracts | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Future policy benefit reserves | 16,770 | 16,029 |
Claim reserves | 4,130 | 3,917 |
Investment contracts | 0 | 0 |
Unearned premiums and other | 28 | 34 |
Future policy benefit reserves, investment contracts, claim reserves and unearned premiums and other | 20,928 | 19,980 |
Total | 20,928 | 19,980 |
Structured settlement annuities & life insurance contracts | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Future policy benefit reserves | 9,578 | 9,495 |
Claim reserves | 236 | 230 |
Investment contracts | 1,165 | 1,239 |
Unearned premiums and other | 198 | 205 |
Future policy benefit reserves, investment contracts, claim reserves and unearned premiums and other | 11,177 | 11,169 |
Total | 11,177 | 11,169 |
Other contracts | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Future policy benefit reserves | 182 | 169 |
Claim reserves | 1,154 | 1,178 |
Investment contracts | 1,074 | 1,149 |
Unearned premiums and other | 132 | 103 |
Future policy benefit reserves, investment contracts, claim reserves and unearned premiums and other | 2,542 | 2,599 |
Eliminations | (466) | (432) |
Total | $ 2,076 | $ 2,167 |
INSURANCE LIABILITIES AND ANN_4
INSURANCE LIABILITIES AND ANNUITY BENEFITS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | |
Insurance [Abstract] | |||||
Premium deficiency | $ 972 | ||||
Adverse impact on reserve margin | $ 1,344 | $ 1,344 | $ 1,344 | ||
Market interest rate decline | 0.60% | 1.30% | |||
Discount rate assumption, weighted average rate | 5.74% | 5.74% | 6.04% | 5.74% | |
Favorable impact to reserve margin | $ 263 | ||||
Previously approved rate increase actions | 200 | ||||
Anticipated future premium increases or benefit reductions | 2,000 | ||||
Increase of anticipated future premium increases or benefit reductions | 300 | ||||
Claims incurred | 1,410 | $ 1,641 | |||
Recognition of prior year claims | (16) | 1 | |||
Paid claims | 1,237 | $ 1,499 | |||
Reinsurance recoverables, net | $ 2,365 | $ 2,365 | $ 2,365 | $ 2,271 |
POSTRETIREMENT BENEFIT PLANS -
POSTRETIREMENT BENEFIT PLANS - Narrative (Details) $ in Millions | Jan. 01, 2021USD ($)employee | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Oct. 31, 2019employee |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined contribution plan costs | $ 83 | $ 104 | $ 274 | $ 320 | |||
Other pension plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Threshold to be included in other pension plans | 50 | 50 | |||||
Plans cost (income) | (17) | (31) | (13) | (85) | |||
Principal retiree benefit plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Plans cost (income) | 31 | 17 | 122 | 58 | |||
Curtailment gain (loss) | 33 | ||||||
Principal pension plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Plans cost (income) | 816 | 1,124 | 2,509 | 3,218 | |||
Curtailment gain (loss) | $ 0 | $ (46) | $ (51) | $ (46) | |||
GE Pension Plan | Subsequent Event | Principal pension plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Number of former employees eligible for lump-sum payment option | employee | 100,000 | ||||||
Forecast | Principal pension plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Increase in projected benefit obligation, net actuarial loss | $ 5,000 | ||||||
Increase in non-operating benefit costs | 600 | ||||||
Forecast | GE Pension Plan | Principal pension plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Curtailment gain (loss) | $ (300) | ||||||
Frozen benefit plan, number of salaried employees | employee | 20,000 | ||||||
Forecast | GE Supplementary Pension Plan | Principal pension plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Frozen benefit plan, number of executive employees | employee | 700 | ||||||
Reduction of projected benefit obligation due to plan amendment | $ 300 |
POSTRETIREMENT BENEFIT PLANS _2
POSTRETIREMENT BENEFIT PLANS - Effect on Operations of Pension Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Principal pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost for benefits earned | $ 154 | $ 232 | $ 472 | $ 667 |
Prior service cost (credit) amortization | 34 | 36 | 101 | 108 |
Expected return on plan assets | (863) | (803) | (2,588) | (2,443) |
Interest cost on benefit obligations | 724 | 666 | 2,173 | 1,999 |
Net actuarial loss amortization | 767 | 947 | 2,300 | 2,841 |
Curtailment loss | 0 | 46 | 51 | 46 |
Plans cost (income) | 816 | 1,124 | 2,509 | 3,218 |
Other pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost for benefits earned | 61 | 85 | 197 | 279 |
Prior service cost (credit) amortization | 1 | (2) | 2 | (4) |
Expected return on plan assets | (316) | (342) | (945) | (1,059) |
Interest cost on benefit obligations | 154 | 150 | 467 | 462 |
Net actuarial loss amortization | 83 | 78 | 250 | 243 |
Settlement/curtailment loss (gain) | 0 | 0 | 16 | (6) |
Plans cost (income) | $ (17) | $ (31) | $ (13) | $ (85) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 0.20% | (2.20%) | |
Continuing Operations | |||
Income Tax Contingency [Line Items] | |||
Tax benefit | $ 378 | ||
Net interest benefits | 107 | ||
Continuing Operations | GE Capital | |||
Income Tax Contingency [Line Items] | |||
Tax benefit | 23 | ||
Net interest benefits | 9 | ||
Continuing Operations | GE | |||
Income Tax Contingency [Line Items] | |||
Tax benefit | 355 | ||
Net interest benefits | 98 | ||
Discontinued Operations | GE Capital | |||
Income Tax Contingency [Line Items] | |||
Tax benefit | 332 | ||
Net interest benefits | $ 46 |
SHAREOWNERS' EQUITY - Schedule
SHAREOWNERS' EQUITY - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Beginning balance | $ 51,481 | ||||
Other comprehensive income (loss) | $ 1,433 | $ 164 | 3,010 | $ 1,082 | |
Ending balance | [1] | 29,153 | 47,837 | 29,153 | 47,837 |
Accumulated other comprehensive income (loss) | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Beginning balance | (12,852) | (13,432) | (14,414) | (14,404) | |
Ending balance | (11,361) | (13,229) | (11,361) | (13,229) | |
Investment securities including noncontrolling interests | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Beginning balance | 59 | 21 | (39) | (102) | |
Other comprehensive income (loss) before reclassifications | 30 | (74) | 151 | 66 | |
Other comprehensive income (loss) before reclassifications, deferred taxes | 15 | (22) | 30 | 26 | |
Reclassifications from other comprehensive income | (12) | 17 | (35) | 1 | |
Reclassifications from other comprehensive income, deferred taxes | (3) | 5 | (9) | 3 | |
Other comprehensive income (loss) | 18 | (57) | 116 | 67 | |
Investment securities attributable to noncontrolling interests | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Other comprehensive income (loss) | 0 | 0 | 0 | 1 | |
Investment securities | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Other comprehensive income (loss) | 18 | (56) | 116 | 67 | |
Ending balance | 77 | (36) | 77 | (36) | |
Currency translation adjustments including noncontrolling interests | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Beginning balance | (5,874) | (5,446) | (6,134) | (4,661) | |
Other comprehensive income (loss) before reclassifications | (189) | (639) | (191) | (1,856) | |
Other comprehensive income (loss) before reclassifications, deferred taxes | (12) | (24) | 27 | 17 | |
Reclassifications from other comprehensive income | 951 | 7 | 1,234 | 385 | |
Reclassifications from other comprehensive income, deferred taxes | (5) | (1) | (9) | (1) | |
Other comprehensive income (loss) | 762 | (632) | 1,043 | (1,471) | |
Currency translation adjustments attributable to noncontrolling interests | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Other comprehensive income (loss) | (63) | (38) | (41) | (93) | |
Currency translation adjustments | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Other comprehensive income (loss) | 824 | (595) | 1,084 | (1,379) | |
Ending balance | (5,050) | (6,040) | (5,050) | (6,040) | |
Cash flow hedges including noncontrolling interests | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Beginning balance | 26 | 36 | 13 | 62 | |
Other comprehensive income (loss) before reclassifications | (30) | (8) | (43) | (35) | |
Other comprehensive income (loss) before reclassifications, deferred taxes | (4) | 2 | (1) | (6) | |
Reclassifications from other comprehensive income | 28 | (1) | 56 | 0 | |
Reclassifications from other comprehensive income, deferred taxes | 6 | 2 | 7 | 9 | |
Other comprehensive income (loss) | (2) | (9) | 13 | (35) | |
Cash flow hedges attributable to noncontrolling interests | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Other comprehensive income (loss) | 1 | (1) | 2 | 0 | |
Cash flow hedges | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Other comprehensive income (loss) | (2) | (8) | 11 | (35) | |
Ending balance | 24 | 27 | 24 | 27 | |
Benefit plans including noncontrolling interests | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Beginning balance | (7,063) | (8,043) | (8,254) | (9,702) | |
Other comprehensive income (loss) before reclassifications | 39 | 73 | (72) | 199 | |
Other comprehensive income (loss) before reclassifications, deferred taxes | 1 | 16 | 36 | 71 | |
Reclassifications from other comprehensive income | 616 | 789 | 1,910 | 2,322 | |
Reclassifications from other comprehensive income, deferred taxes | 170 | 230 | 517 | 666 | |
Other comprehensive income (loss) | 655 | 862 | 1,838 | 2,521 | |
Benefit plans attributable to noncontrolling interests | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Other comprehensive income (loss) | 4 | 0 | (4) | 0 | |
Benefit plans | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Other comprehensive income (loss) | 650 | 863 | 1,842 | 2,521 | |
Ending balance | $ (6,412) | $ (7,181) | $ (6,412) | $ (7,181) | |
[1] | Total equity balance decreased by $(18,684) million in the last twelve months from September 30, 2018, primarily due to reduction of non-controlling interest balance of $(15,192) million attributable to Baker Hughes Class A shareholders at September 30, 2018 and after-tax loss of $(8,190) million in discontinued operations due to deconsolidation of Baker Hughes in the third quarter of 2019, partially offset by after-tax gain of $2,508 million |
SHAREOWNERS' EQUITY - Narrative
SHAREOWNERS' EQUITY - Narrative (Details) shares in Millions, $ in Millions | Aug. 31, 2019 | Oct. 02, 2018USD ($)joint_venture | Sep. 30, 2019USD ($)shares | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Oct. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($) |
Class of Stock [Line Items] | ||||||||||
Adjustments to investment securities before reclassifications | $ (877) | $ 234 | $ (2,888) | $ 1,705 | ||||||
Currency translation gains and losses in earnings (loss) from discontinued operations | 1,079 | |||||||||
Preferred stock issued | $ 6 | 6 | 6 | 6 | 6 | $ 6 | ||||
Noncontrolling interests | 1,219 | 1,219 | 16,383 | 1,219 | 16,383 | 20,500 | ||||
Net earnings attributable to noncontrolling interests | 39 | 54 | 41 | 105 | ||||||
Dividends received attributable to noncontrolling interests | (110) | (96) | (325) | (260) | ||||||
Redeemable noncontrolling interests | $ 408 | $ 408 | 408 | 378 | ||||||
Net earnings (loss) attributable to redeemable noncontrolling interests | (144) | $ 32 | (293) | |||||||
Number of joint ventures formed | joint_venture | 3 | |||||||||
Grid Technology Joint Venture | ||||||||||
Class of Stock [Line Items] | ||||||||||
Amount to be paid to exercise redemption rights | $ 3,105 | |||||||||
Baker Hughes | ||||||||||
Class of Stock [Line Items] | ||||||||||
Ownership interest (as a percent) | 36.80% | 36.80% | 36.80% | |||||||
Baker Hughes | Class A | ||||||||||
Class of Stock [Line Items] | ||||||||||
Noncontrolling interests | $ 0 | $ 0 | $ 0 | $ 19,239 | ||||||
GE | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock issued | 5,695 | 5,695 | 5,695 | |||||||
Preferred stock dividends | 42 | $ 39 | 270 | 260 | ||||||
Cash dividends | 147 | $ 147 | ||||||||
GE | Subsequent Event | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock issued | $ 5,944 | |||||||||
GE | Series D Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock issued | $ 5,694 | $ 5,694 | $ 5,694 | $ 5,694 | ||||||
GE | Series A, B and C Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, value outstanding | $ 250 | |||||||||
Discontinued Operations | Baker Hughes disposal group | Baker Hughes | ||||||||||
Class of Stock [Line Items] | ||||||||||
Sale of shares | shares | 144.1 | |||||||||
Ownership interest (as a percentage) | 50.20% | |||||||||
Ownership interest (as a percent) | 36.80% | 36.80% | 36.80% |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Diluted | ||||
Earnings from continuing operations for per-share calculation | $ (1,283) | $ (22,920) | $ (438) | $ (21,694) |
Preferred stock dividends | (42) | (39) | (270) | (260) |
Earnings from continuing operations attributable to common shareowners for per-share calculation | (1,325) | (22,959) | (708) | (21,954) |
Earnings (loss) from discontinued operations for per-share calculation | (8,140) | 144 | (5,270) | (1,437) |
Net earnings (loss) attributable to GE common shareowners for per-share calculation | $ (9,465) | $ (22,812) | $ (5,977) | $ (23,383) |
Shares of GE common stock outstanding (in shares) | 8,730 | 8,694 | 8,721 | 8,689 |
Employee compensation-related shares (including stock options) (in shares) | 0 | 0 | 0 | 0 |
Total average equivalent shares (in shares) | 8,730 | 8,694 | 8,721 | 8,689 |
Earnings per share from continuing operations (in dollars per share) | $ (0.15) | $ (2.64) | $ (0.08) | $ (2.53) |
Earnings (loss) per share from discontinued operations (in dollars per share) | (0.93) | 0.02 | (0.60) | (0.17) |
Net earnings (loss) per share (in dollars per share) | $ (1.08) | $ (2.62) | $ (0.69) | $ (2.69) |
Basic | ||||
Earnings from continuing operations for per-share calculation | $ (1,283) | $ (22,920) | $ (438) | $ (21,694) |
Preferred stock dividends | (42) | (39) | (270) | (260) |
Earnings from continuing operations attributable to common shareowners for per-share calculation | (1,325) | (22,959) | (708) | (21,955) |
Earnings (loss) from discontinued operations for per-share calculation | (8,140) | 144 | (5,270) | (1,437) |
Net earnings (loss) attributable to GE common shareowners for per-share calculation | $ (9,465) | $ (22,812) | $ (5,977) | $ (23,383) |
Shares of GE common stock outstanding (in shares) | 8,730 | 8,694 | 8,721 | 8,689 |
Employee compensation-related shares (including stock options) (in shares) | 0 | 0 | 0 | 0 |
Total average equivalent shares (in shares) | 8,730 | 8,694 | 8,721 | 8,689 |
Earnings per share from continuing operations (in dollars per share) | $ (0.15) | $ (2.64) | $ (0.08) | $ (2.53) |
Earnings (loss) per share from discontinued operations (in dollars per share) | (0.93) | 0.02 | (0.60) | (0.17) |
Net earnings (loss) per share (in dollars per share) | $ (1.08) | $ (2.62) | $ (0.69) | $ (2.69) |
Potentially dilutive securities | 453 | 424 | 462 | 410 |
FINANCIAL INSTRUMENTS - Assets
FINANCIAL INSTRUMENTS - Assets and Liabilities Not Carried at Fair Value (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Liabilities | ||
Decrease in fair value of borrowings | $ 1,710 | $ 1,300 |
Carrying amount (net) | ||
Assets | ||
Loans and other receivables | 4,540 | 8,811 |
Liabilities | ||
Borrowings (Note 11) | 93,244 | 103,599 |
Investment contracts (Note 12) | 2,239 | 2,388 |
Estimated fair value | ||
Assets | ||
Loans and other receivables | 4,638 | 8,829 |
Liabilities | ||
Borrowings (Note 11) | 98,246 | 100,492 |
Investment contracts (Note 12) | 2,653 | 2,630 |
Accrued interest | $ 1,017 | $ 1,324 |
FINANCIAL INSTRUMENTS - Derivat
FINANCIAL INSTRUMENTS - Derivatives and Hedging, Narrative (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Total gross notional amount | $ 96,690,000,000 | $ 117,104,000,000 |
Excess cash collateral received | 51,000,000 | 3,000,000 |
Excess cash collateral posted | 786,000,000 | 439,000,000 |
Excess securities collateral received | 18,000,000 | 0 |
GE | ||
Derivative [Line Items] | ||
Total gross notional amount | 38,019,000,000 | 38,022,000,000 |
GE Capital | ||
Derivative [Line Items] | ||
Total gross notional amount | $ 58,671,000,000 | $ 79,082,000,000 |
FINANCIAL INSTRUMENTS - Fair Va
FINANCIAL INSTRUMENTS - Fair Value of Derivatives (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Gross Notional | $ 96,690 | $ 117,104 |
All other assets | ||
Gross derivatives | 2,632 | 2,205 |
Netting and credit adjustments | (674) | (959) |
Cash collateral adjustments | (1,226) | (1,042) |
Net derivatives recognized in statement of financial position | 732 | 205 |
Net accrued interest | 152 | 205 |
Securities held as collateral | (567) | (235) |
Net amount | 317 | 174 |
All other liabilities | ||
Gross derivatives | 1,146 | 1,820 |
Netting and credit adjustments | (678) | (967) |
Cash collateral adjustments | (202) | (267) |
Net derivatives recognized in statement of financial position | 266 | 586 |
Net accrued interest | 4 | 1 |
Securities held as collateral | 0 | 0 |
Net amount | 270 | 587 |
Derivatives accounted for as hedges | ||
Derivative [Line Items] | ||
Gross Notional | 30,480 | 30,758 |
All other assets | ||
Gross derivatives | 1,993 | 1,511 |
All other liabilities | ||
Gross derivatives | 109 | 138 |
Derivatives accounted for as hedges | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Notional | 23,819 | 22,904 |
All other assets | ||
Gross derivatives | 1,904 | 1,335 |
All other liabilities | ||
Gross derivatives | 11 | 23 |
Derivatives accounted for as hedges | Currency exchange contracts | ||
Derivative [Line Items] | ||
Gross Notional | 6,661 | 7,854 |
All other assets | ||
Gross derivatives | 89 | 175 |
All other liabilities | ||
Gross derivatives | 98 | 114 |
Derivatives not accounted for as hedges | ||
Derivative [Line Items] | ||
Gross Notional | 66,210 | 86,346 |
All other assets | ||
Gross derivatives | 639 | 695 |
All other liabilities | ||
Gross derivatives | 1,037 | 1,682 |
Derivatives not accounted for as hedges | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Notional | 3,413 | 6,198 |
All other assets | ||
Gross derivatives | 28 | 28 |
All other liabilities | ||
Gross derivatives | 3 | 2 |
Derivatives not accounted for as hedges | Currency exchange contracts | ||
Derivative [Line Items] | ||
Gross Notional | 61,050 | 77,544 |
All other assets | ||
Gross derivatives | 543 | 653 |
All other liabilities | ||
Gross derivatives | 953 | 1,472 |
Derivatives not accounted for as hedges | Other contracts | ||
Derivative [Line Items] | ||
Gross Notional | 1,746 | 2,604 |
All other assets | ||
Gross derivatives | 67 | 13 |
All other liabilities | ||
Gross derivatives | $ 82 | $ 209 |
FINANCIAL INSTRUMENTS - Fair _2
FINANCIAL INSTRUMENTS - Fair Value Hedges (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cumulative amount of fair value hedging adjustments | $ 5,118 | $ 2,847 |
Cumulative amount of fair value hedging on discontinued hedging relationships | 2,484 | 2,844 |
Hedged liability | $ 57,017 | $ 61,292 |
FINANCIAL INSTRUMENTS - Cash Fl
FINANCIAL INSTRUMENTS - Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Gain (loss) recognized in AOCI | $ (21) | $ (5) | $ (24) | $ (25) |
Gain (loss) reclassified from AOCI into earnings | $ (34) | $ (1) | (63) | $ (9) |
Pre-tax gain included in AOCI related to cash flow hedges of forecasted transactions | 64 | |||
Amount of loss expected to be transferred to earnings as an expense | $ 58 | |||
Maximum term of hedged forecasted transactions | 13 years | 14 years |
FINANCIAL INSTRUMENTS - Net Inv
FINANCIAL INSTRUMENTS - Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative [Line Items] | ||||
Gain (loss) recognized in AOCI on hedging instruments | $ 213 | $ (62) | $ 231 | $ 144 |
Reclassified from AOCI into earnings | 338 | (7) | 344 | (7) |
Net Investment Hedges | ||||
Derivative [Line Items] | ||||
Gain (loss) excluded from assessment recognized in earnings | 6 | 6 | 22 | 14 |
Currency exchange contracts | ||||
Derivative [Line Items] | ||||
Gain (loss) recognized in AOCI on hedging instruments | 32 | 18 | 7 | 100 |
Foreign currency debt | ||||
Derivative [Line Items] | ||||
Gain (loss) recognized in AOCI on hedging instruments | 181 | (79) | 225 | 43 |
Carrying value designated as net investment hedges | $ 9,119 | $ 12,894 | $ 9,119 | $ 12,894 |
FINANCIAL INSTRUMENTS - Effects
FINANCIAL INSTRUMENTS - Effects of Derivative Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Revenues | $ 23,360 | $ 23,392 | $ 68,976 | $ 70,513 |
Cost of sales | 17,328 | 17,847 | 50,949 | 52,244 |
Interest and other financial charges | 1,279 | 1,155 | 3,272 | 3,585 |
SG&A | 3,293 | 4,100 | 10,120 | 11,013 |
Other income | 158 | 279 | 1,170 | 1,388 |
Total effect of cash flow hedges | (34) | (1) | (63) | (9) |
Revenues | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total effect of cash flow hedges | (24) | 8 | (18) | 4 |
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (109) | (426) | (62) | (967) |
Cost of sales | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total effect of cash flow hedges | (1) | 1 | (14) | 17 |
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (8) | (240) | (29) | (484) |
Interest Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total effect of cash flow hedges | (8) | (10) | (27) | (30) |
Fair Value Hedges | ||||
Hedged items | (1,000) | 333 | (2,186) | 1,200 |
Derivatives designated as hedging instruments | 1,011 | (362) | 2,172 | (1,285) |
Total effect of fair value hedges | 10 | (29) | (14) | (85) |
Total effect of derivatives not designated as hedges | (74) | 38 | (89) | 27 |
SG&A | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total effect of cash flow hedges | (2) | 0 | (3) | 0 |
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 60 | 0 | (2) | 0 |
Other Income | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total effect of cash flow hedges | 0 | 0 | 0 | 0 |
Fair Value Hedges | ||||
Hedged items | ||||
Derivatives designated as hedging instruments | ||||
Total effect of fair value hedges | ||||
Total effect of derivatives not designated as hedges | (18) | (32) | (42) | (8) |
Interest rate contracts | Revenues | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | (11) | (36) | (46) |
Interest rate contracts | Cost of sales | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 0 | 0 | 0 |
Interest rate contracts | Interest Expense | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 0 | 0 | 0 |
Interest rate contracts | SG&A | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 0 | 0 | 0 |
Interest rate contracts | Other Income | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 0 | 0 | 0 |
Currency exchange contracts | Revenues | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (108) | (415) | (25) | (921) |
Currency exchange contracts | Cost of sales | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (8) | (240) | (29) | (484) |
Currency exchange contracts | Interest Expense | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (73) | 0 | (212) | 0 |
Currency exchange contracts | SG&A | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 60 | 0 | (2) | 0 |
Currency exchange contracts | Other Income | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (28) | (10) | (52) | (6) |
Other | Revenues | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (1) | 0 | (1) | (1) |
Other | Cost of sales | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 0 | 0 | 0 |
Other | Interest Expense | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 38 | 123 | 27 |
Other | SG&A | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 0 | 0 | 0 |
Other | Other Income | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | $ 9 | $ (22) | $ 10 | $ (2) |
FINANCIAL INSTRUMENTS - Counter
FINANCIAL INSTRUMENTS - Counterparty Credit Risk (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Net amount | $ 270 | $ 587 |
Counterparty Credit Risk | ||
Derivative [Line Items] | ||
Exposure to counterparties including interest net collateral, excluding embedded derivatives | 227 | 95 |
Net amount | $ 250 | $ 571 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) | 9 Months Ended | |
Sep. 30, 2019USD ($)entity | Dec. 31, 2018USD ($) | |
Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 1,539,000,000 | $ 2,321,000,000 |
Liabilities | 1,007,000,000 | 1,611,000,000 |
Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated VIEs | 1,859,000,000 | 2,346,000,000 |
Additional investments | 579,000,000 | |
Unconsolidated VIEs | EFS | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated VIEs | 837,000,000 | 1,670,000,000 |
Unconsolidated VIEs | Insurance | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated VIEs | 525,000,000 | $ 0 |
Additional investments | $ 483,000,000 | |
GE Capital | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Number of VIEs | entity | 3 |
COMMITMENTS, GUARANTEES, PROD_3
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - Commitments (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($)aircraft | |
GE Capital | Investment Commitments | |
Long-term Purchase Commitment [Line Items] | |
Commitments | $ 2,614 |
GE Capital | Thermal And Wind Energy Projects | |
Long-term Purchase Commitment [Line Items] | |
Commitments | 1,395 |
GE Capital | Run-off Insurance Operations | |
Long-term Purchase Commitment [Line Items] | |
Commitments | 1,189 |
GECAS | Aircraft with GE Engines | |
Long-term Purchase Commitment [Line Items] | |
Long-term purchase commitments | 33,153 |
Advances for pre-delivery payments | $ 3,064 |
GECAS | New Aircraft | |
Long-term Purchase Commitment [Line Items] | |
Number of aircrafts for delivery | aircraft | 369 |
Percentage of aircrafts to be delivered | 6.00% |
Percentage of aircrafts to be delivered in second year | 18.00% |
Percentage of aircrafts to be delivered in third year and thereafter | 76.00% |
GECAS | Used Aircraft | |
Long-term Purchase Commitment [Line Items] | |
Long-term purchase commitments | $ 2,317 |
Number of aircrafts for delivery | aircraft | 57 |
Percentage of aircrafts to be delivered | 28.00% |
Percentage of aircrafts to be delivered in second year | 47.00% |
Percentage of aircrafts to be delivered in third year and thereafter | 25.00% |
Aviation | |
Long-term Purchase Commitment [Line Items] | |
Financial assistance commitment | $ 2,318 |
COMMITMENTS, GUARANTEES, PROD_4
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - Guarantees (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Guarantor Obligations [Line Items] | ||
Liability for indemnification agreements | $ 17,026 | $ 20,008 |
Credit support | ||
Guarantor Obligations [Line Items] | ||
Commitments | 1,637 | |
Liability | 40 | |
Indemnification agreements | ||
Guarantor Obligations [Line Items] | ||
Commitments | 1,654 | |
Liability for indemnification agreements | 139 | |
Indemnification agreements - discontinued operations | ||
Guarantor Obligations [Line Items] | ||
Liability | 148 | |
Indemnification agreements - discontinued operations | Maximum | ||
Guarantor Obligations [Line Items] | ||
Commitments | $ 1,136 |
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, 2019 | Sep. 30, 2018 | |
Movement in Standard Product Warranty Accrual | ||
Balance at January 1 | $ 2,193 | $ 2,103 |
Current-year provisions | 527 | 722 |
Expenditures | (525) | (597) |
Other changes | 34 | 7 |
Balance as of September 30 | $ 2,229 | $ 2,236 |
COMMITMENTS, GUARANTEES, PROD_6
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - WMC Legal Matters (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Apr. 30, 2019 | Sep. 30, 2019 | |
WMC Bankruptcy Case | GE Capital | ||
Loss Contingencies [Line Items] | ||
Estimated litigation settlement | $ 67 | |
Estimated liability | $ 211 | |
Violation of FIRREA by WMC and GE Capital | ||
Loss Contingencies [Line Items] | ||
Amount paid | $ 1,500 | |
Violation of FIRREA by WMC and GE Capital | GE Capital | ||
Loss Contingencies [Line Items] | ||
Debtor-in-possession financing, amount arranged | $ 25 |
COMMITMENTS, GUARANTEES, PROD_7
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, 2019USD ($) |
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 | $ 859 |
CASH FLOWS INFORMATION (Details
CASH FLOWS INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
All other operating activities | |||
All other operating activities | $ 1,606 | $ (908) | |
All other investing activities | |||
All other investing activities | 1,165 | 7,480 | |
All other financing activities | |||
All other financing activities | (1,128) | (1,659) | |
GE | |||
All other operating activities | |||
Increase (decrease) in employee benefit liabilities | (373) | 41 | |
Other gains on investing activities | 232 | (434) | |
Restructuring and other charges | 763 | 1,651 | |
Restructuring and other cash expenditures | (854) | (975) | |
Increase (decrease) in equipment project accruals | (76) | (785) | |
Baker Hughes Class B dividends received | 282 | 399 | |
Other | 580 | (434) | |
All other operating activities | 554 | (537) | |
All other investing activities | |||
Derivative settlements, net | 9 | (490) | |
Investments in intangible assets, net | (17) | (472) | |
Sales of retained ownership interests in Wabtec | 3,383 | 0 | |
Other | 29 | 138 | |
All other investing activities | 3,404 | (824) | |
All other financing activities | |||
Disposition of Baker Hughes noncontrolling interests | 0 | 638 | |
Acquisition of noncontrolling interests | (28) | (240) | |
Other | (320) | 34 | |
All other financing activities | $ (348) | $ 432 | |
Debt tender expenditures | $ (244) |
INTERCOMPANY TRANSACTIONS (Deta
INTERCOMPANY TRANSACTIONS (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities - continuing operations | $ 3,423 | $ (4,334) |
Total cash from (used for) investing activities - continuing operations | 7,087 | 12,129 |
Total cash from (used for) financing activities - continuing operations | (13,721) | (22,224) |
GE and GE Capital totals | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities - continuing operations | 1,311 | (3,962) |
Total cash from (used for) investing activities - continuing operations | 9,680 | 7,209 |
Total cash from (used for) financing activities - continuing operations | (14,201) | (17,677) |
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 | 508 | (161) |
Total cash from (used for) investing activities - continuing operations | (1,167) | (1,016) |
Total cash from (used for) financing activities - continuing operations | 659 | 1,177 |
Cash payments received on deferred purchase price | 268 | 3,905 |
GE and GE Capital totals | Affiliated Entity | GE long-term receivables sold to GE Capital | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities - continuing operations | 340 | 851 |
Total cash from (used for) investing activities - continuing operations | (340) | (851) |
GE and GE Capital totals | Affiliated Entity | Supply chain finance programs | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities - continuing operations | 1,062 | 152 |
Total cash from (used for) investing activities - continuing operations | (1,062) | (152) |
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 | (480) | 6,479 |
Total cash from (used for) financing activities - continuing operations | 480 | (6,479) |
GE and GE Capital totals | Affiliated Entity | Capital contribution from GE to GE Capital | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) investing activities - continuing operations | 1,500 | 0 |
Total cash from (used for) financing activities - continuing operations | (1,500) | 0 |
Other reclassifications and eliminations | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities - continuing operations | 201 | (1,214) |
Total cash from (used for) investing activities - continuing operations | (1,043) | 460 |
Total cash from (used for) financing activities - continuing operations | $ 842 | $ 755 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||
Revenues | $ 23,360 | $ 23,392 | $ 68,976 | $ 70,513 |
Costs and expenses | ||||
Interest and other financial charges | 1,279 | 1,155 | 3,272 | 3,585 |
Other costs and expenses | 23,488 | 45,478 | 67,296 | 89,634 |
Total costs and expenses | 24,767 | 46,633 | 70,568 | 93,219 |
Other income (loss) | 158 | 279 | 1,170 | 1,388 |
Equity in earnings (loss) of affiliates | 0 | 0 | 0 | 0 |
Earnings (loss) from continuing operations before income taxes | (1,249) | (22,962) | (422) | (21,318) |
Benefit (provision) for income taxes | (41) | (52) | 1 | (460) |
Earnings (loss) from continuing operations | (1,290) | (23,014) | (421) | (21,777) |
Earnings (loss) from discontinued operations, net of taxes | (8,093) | 155 | (5,212) | (1,526) |
Net earnings (loss) | (9,383) | (22,859) | (5,634) | (23,304) |
Less net earnings (loss) attributable to noncontrolling interests | 40 | (90) | 73 | (188) |
Net earnings (loss) attributable to the Company | (9,423) | (22,769) | (5,707) | (23,116) |
Other comprehensive income (loss) | 1,491 | 203 | 3,053 | 1,174 |
Comprehensive income (loss) attributable to the Company | (7,931) | (22,566) | (2,654) | (21,941) |
Goods and services | ||||
Revenues | ||||
Sales of goods and services | 21,504 | 21,282 | 63,132 | 64,604 |
GE Capital revenues from services | ||||
Revenues | ||||
Revenues | 1,856 | 2,110 | 5,845 | 5,909 |
Reportable Legal Entities | Parent Company Guarantor | ||||
Revenues | ||||
Revenues | 7,169 | 7,301 | 19,993 | 21,127 |
Costs and expenses | ||||
Interest and other financial charges | 634 | 451 | 1,278 | 1,281 |
Other costs and expenses | 4,945 | 11,780 | 18,377 | 32,198 |
Total costs and expenses | 5,580 | 12,231 | 19,654 | 33,479 |
Other income (loss) | 1,320 | 1,193 | (1,894) | 2,450 |
Equity in earnings (loss) of affiliates | (4,476) | (11,235) | (4,430) | (11,761) |
Earnings (loss) from continuing operations before income taxes | (1,567) | (14,971) | (5,985) | (21,663) |
Benefit (provision) for income taxes | (386) | 224 | (673) | 47 |
Earnings (loss) from continuing operations | (1,953) | (14,748) | (6,658) | (21,616) |
Earnings (loss) from discontinued operations, net of taxes | 683 | 39 | 951 | (1,634) |
Net earnings (loss) | (1,270) | (14,708) | (5,707) | (23,250) |
Less net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | (134) |
Net earnings (loss) attributable to the Company | (1,270) | (14,708) | (5,707) | (23,116) |
Other comprehensive income (loss) | 1,491 | 203 | 3,053 | 1,174 |
Comprehensive income (loss) attributable to the Company | 221 | (14,505) | (2,654) | (21,941) |
Reportable Legal Entities | Parent Company Guarantor | Goods and services | ||||
Revenues | ||||
Sales of goods and services | 7,169 | 7,301 | 19,993 | 21,127 |
Reportable Legal Entities | Parent Company Guarantor | GE Capital revenues from services | ||||
Revenues | ||||
Revenues | 0 | 0 | 0 | 0 |
Reportable Legal Entities | Subsidiary Issuer | ||||
Revenues | ||||
Revenues | 245 | 237 | 724 | 678 |
Costs and expenses | ||||
Interest and other financial charges | 272 | 236 | 744 | 671 |
Other costs and expenses | 0 | 0 | 0 | 0 |
Total costs and expenses | 272 | 236 | 744 | 672 |
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 | (27) | 2 | (20) | 7 |
Benefit (provision) for income taxes | 3 | 0 | 3 | (1) |
Earnings (loss) from continuing operations | (24) | 1 | (18) | 6 |
Earnings (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | 0 |
Net earnings (loss) | (24) | 1 | (18) | 6 |
Less net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to the Company | (24) | 1 | (18) | 6 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to the Company | (24) | 1 | (18) | 6 |
Reportable Legal Entities | Subsidiary Issuer | Goods and services | ||||
Revenues | ||||
Sales of goods and services | 0 | 0 | 0 | 0 |
Reportable Legal Entities | Subsidiary Issuer | GE Capital revenues from services | ||||
Revenues | ||||
Revenues | 245 | 237 | 724 | 678 |
Reportable Legal Entities | Subsidiary Guarantor | ||||
Revenues | ||||
Revenues | (18) | 300 | 68 | 852 |
Costs and expenses | ||||
Interest and other financial charges | 356 | 725 | 1,068 | 1,889 |
Other costs and expenses | (38) | 0 | 0 | 0 |
Total costs and expenses | 318 | 725 | 1,068 | 1,889 |
Other income (loss) | 0 | 0 | 0 | 0 |
Equity in earnings (loss) of affiliates | (37) | 705 | 808 | 1,199 |
Earnings (loss) from continuing operations before income taxes | (373) | 281 | (192) | 161 |
Benefit (provision) for income taxes | 0 | 0 | 0 | 0 |
Earnings (loss) from continuing operations | (373) | 281 | (192) | 161 |
Earnings (loss) from discontinued operations, net of taxes | 40 | 18 | 42 | (63) |
Net earnings (loss) | (333) | 298 | (150) | 98 |
Less net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to the Company | (333) | 298 | (150) | 98 |
Other comprehensive income (loss) | (1) | 12 | (1,105) | (42) |
Comprehensive income (loss) attributable to the Company | (334) | 310 | (1,255) | 56 |
Reportable Legal Entities | Subsidiary Guarantor | Goods and services | ||||
Revenues | ||||
Sales of goods and services | 0 | 0 | 0 | 0 |
Reportable Legal Entities | Subsidiary Guarantor | GE Capital revenues from services | ||||
Revenues | ||||
Revenues | (18) | 300 | 68 | 852 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||
Revenues | ||||
Revenues | 33,519 | 32,895 | 101,747 | 100,263 |
Costs and expenses | ||||
Interest and other financial charges | 148 | 553 | 899 | 2,041 |
Other costs and expenses | 40,629 | 25,345 | 85,378 | 89,228 |
Total costs and expenses | 40,777 | 25,898 | 86,276 | 91,269 |
Other income (loss) | 4,458 | 1,217 | 12,588 | 3,883 |
Equity in earnings (loss) of affiliates | 31,207 | 28,378 | 58,383 | 28,378 |
Earnings (loss) from continuing operations before income taxes | 28,406 | 36,593 | 86,442 | 41,255 |
Benefit (provision) for income taxes | 339 | (536) | 46 | (1,098) |
Earnings (loss) from continuing operations | 28,745 | 36,057 | 86,489 | 40,157 |
Earnings (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | 1 |
Net earnings (loss) | 28,745 | 36,057 | 86,489 | 40,158 |
Less net earnings (loss) attributable to noncontrolling interests | (7) | (81) | (3) | (202) |
Net earnings (loss) attributable to the Company | 28,752 | 36,138 | 86,492 | 40,360 |
Other comprehensive income (loss) | 1,313 | (751) | 870 | (2,381) |
Comprehensive income (loss) attributable to the Company | 30,064 | 35,387 | 87,362 | 37,978 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | Goods and services | ||||
Revenues | ||||
Sales of goods and services | 31,413 | 30,387 | 95,009 | 94,872 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | GE Capital revenues from services | ||||
Revenues | ||||
Revenues | 2,107 | 2,508 | 6,738 | 5,390 |
Consolidating Adjustments | ||||
Revenues | ||||
Revenues | (17,554) | (17,342) | (53,556) | (52,406) |
Costs and expenses | ||||
Interest and other financial charges | (132) | (810) | (716) | (2,296) |
Other costs and expenses | (22,048) | 8,352 | (36,458) | (31,793) |
Total costs and expenses | (22,180) | 7,542 | (37,174) | (34,090) |
Other income (loss) | (5,619) | (2,132) | (9,524) | (4,945) |
Equity in earnings (loss) of affiliates | (26,695) | (17,849) | (54,761) | (17,816) |
Earnings (loss) from continuing operations before income taxes | (27,688) | (44,866) | (80,667) | (41,078) |
Benefit (provision) for income taxes | 3 | 260 | 624 | 592 |
Earnings (loss) from continuing operations | (27,685) | (44,606) | (80,043) | (40,486) |
Earnings (loss) from discontinued operations, net of taxes | (8,817) | 98 | (6,205) | 170 |
Net earnings (loss) | (36,502) | (44,508) | (86,248) | (40,316) |
Less net earnings (loss) attributable to noncontrolling interests | 46 | (9) | 76 | 148 |
Net earnings (loss) attributable to the Company | (36,548) | (44,498) | (86,324) | (40,464) |
Other comprehensive income (loss) | (1,312) | 739 | 235 | 2,424 |
Comprehensive income (loss) attributable to the Company | (37,860) | (43,759) | (86,089) | (38,040) |
Consolidating Adjustments | Goods and services | ||||
Revenues | ||||
Sales of goods and services | (17,077) | (16,407) | (51,871) | (51,395) |
Consolidating Adjustments | GE Capital revenues from services | ||||
Revenues | ||||
Revenues | $ (477) | $ (936) | $ (1,685) | $ (1,011) |
GUARANTOR FINANCIAL INFORMATI_4
GUARANTOR FINANCIAL INFORMATION - Condensed Consolidating Statement of Financial Position (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Assets | |||
Cash, cash equivalents and restricted cash | $ 27,810 | $ 31,124 | $ 22,054 |
Receivables - net | 26,726 | 29,488 | |
Investment in subsidiaries | 0 | 0 | |
All other assets | 208,474 | 250,460 | |
Total assets | 263,009 | 311,072 | |
Liabilities and equity | |||
Short-term borrowings | 17,046 | 12,776 | |
Long-term and non-recourse borrowings | 76,199 | 90,824 | |
All other liabilities | 140,612 | 155,992 | |
Total liabilities | 233,856 | 259,591 | |
Total liabilities and equity | 263,009 | 311,072 | |
Reportable Legal Entities | Parent Company Guarantor | |||
Assets | |||
Cash, cash equivalents and restricted cash | 10,001 | 9,561 | 2,289 |
Receivables - net | 41,269 | 27,868 | |
Investment in subsidiaries | 143,127 | 175,071 | |
All other assets | 31,724 | 19,165 | |
Total assets | 226,120 | 231,665 | |
Liabilities and equity | |||
Short-term borrowings | 130,045 | 143,481 | |
Long-term and non-recourse borrowings | 40,901 | 50,705 | |
All other liabilities | 65,166 | 45,722 | |
Total liabilities | 236,112 | 239,908 | |
Total liabilities and equity | 226,120 | 231,665 | |
Reportable Legal Entities | Subsidiary Issuer | |||
Assets | |||
Cash, cash equivalents and restricted cash | 0 | 0 | 0 |
Receivables - net | 17,841 | 17,467 | |
Investment in subsidiaries | 0 | 0 | |
All other assets | 480 | 12 | |
Total assets | 18,322 | 17,479 | |
Liabilities and equity | |||
Short-term borrowings | 0 | 0 | |
Long-term and non-recourse borrowings | 17,019 | 16,115 | |
All other liabilities | 275 | 336 | |
Total liabilities | 17,294 | 16,452 | |
Total liabilities and equity | 18,322 | 17,479 | |
Reportable Legal Entities | Subsidiary Guarantor | |||
Assets | |||
Cash, cash equivalents and restricted cash | 0 | 0 | 15 |
Receivables - net | 34 | 2,792 | |
Investment in subsidiaries | 40,179 | 45,832 | |
All other assets | 0 | 0 | |
Total assets | 40,212 | 48,623 | |
Liabilities and equity | |||
Short-term borrowings | 1,552 | 9,854 | |
Long-term and non-recourse borrowings | 25,511 | 24,341 | |
All other liabilities | 219 | 245 | |
Total liabilities | 27,282 | 34,439 | |
Total liabilities and equity | 40,212 | 48,623 | |
Reportable Legal Entities | Non- Guarantor Subsidiaries | |||
Assets | |||
Cash, cash equivalents and restricted cash | 21,215 | 25,975 | 25,240 |
Receivables - net | 61,998 | 56,256 | |
Investment in subsidiaries | 699,149 | 733,535 | |
All other assets | 316,579 | 298,493 | |
Total assets | 1,098,942 | 1,114,260 | |
Liabilities and equity | |||
Short-term borrowings | 7,303 | 9,653 | |
Long-term and non-recourse borrowings | 24,676 | 47,014 | |
All other liabilities | 136,051 | 133,203 | |
Total liabilities | 168,031 | 189,870 | |
Total liabilities and equity | 1,098,942 | 1,114,260 | |
Consolidating Adjustments | |||
Assets | |||
Cash, cash equivalents and restricted cash | (3,406) | (4,412) | $ (5,490) |
Receivables - net | (94,416) | (74,895) | |
Investment in subsidiaries | (882,455) | (954,437) | |
All other assets | (140,309) | (67,210) | |
Total assets | (1,120,586) | (1,100,954) | |
Liabilities and equity | |||
Short-term borrowings | (121,854) | (150,212) | |
Long-term and non-recourse borrowings | (31,909) | (47,352) | |
All other liabilities | (61,100) | (23,514) | |
Total liabilities | (214,863) | (221,078) | |
Total liabilities and equity | $ (1,120,586) | $ (1,100,954) |
GUARANTOR FINANCIAL INFORMATI_5
GUARANTOR FINANCIAL INFORMATION - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Guarantor Obligations [Line Items] | |||
Cash from (used for) operating activities | $ 2,033 | $ (3,589) | |
Cash from (used for) investing activities | 5,050 | 11,636 | |
Cash from (used for) financing activities | (14,089) | (24,967) | |
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | (131) | (440) | |
Increase (decrease) in cash, cash equivalents and restricted cash | (7,136) | (17,361) | |
Cash, cash equivalents and restricted cash at beginning of year | 35,548 | 44,724 | |
Cash, cash equivalents and restricted cash at September 30 | 28,412 | 27,364 | |
Less cash, cash equivalents and restricted cash of discontinued operations at September 30 | 602 | 5,310 | |
Cash, cash equivalents and restricted cash of continuing operations at September 30 | 27,810 | 22,054 | $ 31,124 |
Cash from (used for) operating activities – discontinued operations | (1,390) | 745 | |
Reportable Legal Entities | Parent Company Guarantor | |||
Guarantor Obligations [Line Items] | |||
Cash from (used for) operating activities | 9,148 | 11,267 | |
Cash from (used for) investing activities | 34,181 | (625) | |
Cash from (used for) financing activities | (42,889) | (11,824) | |
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | |
Increase (decrease) in cash, cash equivalents and restricted cash | 440 | (1,183) | |
Cash, cash equivalents and restricted cash at beginning of year | 9,561 | 3,472 | |
Cash, cash equivalents and restricted cash at September 30 | 10,001 | 2,289 | |
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 | 10,001 | 2,289 | 9,561 |
Cash from (used for) operating activities – discontinued operations | (2,382) | 185 | |
Reportable Legal Entities | Subsidiary Issuer | |||
Guarantor Obligations [Line Items] | |||
Cash from (used for) operating activities | 400 | (118) | |
Cash from (used for) investing activities | (400) | 189 | |
Cash from (used for) financing activities | 0 | (70) | |
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 | |
Cash, cash equivalents and restricted cash at September 30 | 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 | |||
Guarantor Obligations [Line Items] | |||
Cash from (used for) operating activities | (1,539) | (381) | |
Cash from (used for) investing activities | 6,072 | (1,052) | |
Cash from (used for) financing activities | (4,532) | 1,445 | |
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 | 12 | |
Cash, cash equivalents and restricted cash at beginning of year | 0 | 3 | |
Cash, cash equivalents and restricted cash at September 30 | 0 | 15 | |
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 | 15 | 0 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | |||
Guarantor Obligations [Line Items] | |||
Cash from (used for) operating activities | 6,556 | 24,135 | |
Cash from (used for) investing activities | 108,843 | (18,293) | |
Cash from (used for) financing activities | (120,127) | (16,845) | |
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | (131) | (440) | |
Increase (decrease) in cash, cash equivalents and restricted cash | (4,859) | (11,443) | |
Cash, cash equivalents and restricted cash at beginning of year | 26,676 | 41,993 | |
Cash, cash equivalents and restricted cash at September 30 | 21,817 | 30,550 | |
Less cash, cash equivalents and restricted cash of discontinued operations at September 30 | 602 | 5,310 | |
Cash, cash equivalents and restricted cash of continuing operations at September 30 | 21,215 | 25,240 | 25,975 |
Consolidating Adjustments | |||
Guarantor Obligations [Line Items] | |||
Cash from (used for) operating activities | (12,531) | (38,492) | |
Cash from (used for) investing activities | (143,646) | 31,417 | |
Cash from (used for) financing activities | 153,460 | 2,328 | |
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | |
Increase (decrease) in cash, cash equivalents and restricted cash | (2,717) | (4,747) | |
Cash, cash equivalents and restricted cash at beginning of year | (689) | (743) | |
Cash, cash equivalents and restricted cash at September 30 | (3,406) | (5,490) | |
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 | $ (3,406) | $ (5,490) | $ (4,412) |
SEGMENT OPERATIONS (Details)
SEGMENT OPERATIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 23,360 | $ 23,392 | $ 68,976 | $ 70,513 |
Revenues, V% | 0.00% | (2.00%) | ||
Corporate items and eliminations | $ (1,249) | (22,962) | $ (422) | (21,318) |
GE goodwill impairments | $ (740) | (21,973) | $ (1,484) | (21,973) |
GE goodwill impairments, V% | 97.00% | 93.00% | ||
GE interest and other financial charges | $ (1,279) | (1,155) | $ (3,272) | (3,585) |
GE non-operating benefit costs | (565) | (763) | (1,694) | (2,141) |
Benefit (provision) for income taxes | (41) | (52) | 1 | (460) |
Earnings (loss) from continuing operations attributable to GE common shareowners | $ (1,325) | (22,956) | $ (707) | (21,947) |
Earnings (loss) from continuing operations attributable to GE common shareowners, V% | 94.00% | 97.00% | ||
Earnings (loss) from discontinued operations, net of taxes | $ (8,093) | 155 | $ (5,212) | (1,526) |
Less net earnings attributable to noncontrolling interests, discontinued operations | 46 | 7 | 58 | (97) |
Earnings (loss) from discontinued operations, net of tax and noncontrolling interest | (8,140) | 148 | (5,270) | (1,429) |
Net earnings (loss) attributable to GE common shareowners | $ (9,465) | (22,808) | $ (5,977) | (23,376) |
Consolidated net earnings (loss) attributable to the GE common shareowners, V% | 59.00% | 74.00% | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 23,480 | 23,138 | $ 68,938 | 69,982 |
Revenues, V% | 1.00% | (1.00%) | ||
Segment profit (loss) | $ 1,806 | 1,986 | $ 6,493 | 7,151 |
Segment profit (loss), V% | (9.00%) | (9.00%) | ||
Operating Segments | Power | ||||
Segment Reporting Information [Line Items] | ||||
GE goodwill impairments | $ 0 | |||
Operating Segments | Renewable Energy | ||||
Segment Reporting Information [Line Items] | ||||
GE goodwill impairments | (1,484) | |||
Operating Segments | Aviation | ||||
Segment Reporting Information [Line Items] | ||||
GE goodwill impairments | 0 | |||
Operating Segments | Healthcare | ||||
Segment Reporting Information [Line Items] | ||||
GE goodwill impairments | 0 | |||
Operating Segments | Capital | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,097 | 2,473 | 6,645 | 7,075 |
GE goodwill impairments | 0 | |||
Corporate Items and Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (120) | 254 | $ 39 | 531 |
Revenues, V% | (93.00%) | |||
Corporate items and eliminations | $ (808) | (1,523) | $ (2,013) | (2,596) |
Corporate items and eliminations, V% | 47.00% | 22.00% | ||
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
GE interest and other financial charges | $ (791) | (590) | $ (1,693) | (1,773) |
GE interest and other financial charges, V% | (34.00%) | 5.00% | ||
GE non-operating benefit costs | $ (562) | (760) | $ (1,684) | (2,132) |
GE non-operating benefit costs, V% | 26.00% | 21.00% | ||
Benefit (provision) for income taxes | $ (229) | (95) | $ (327) | (624) |
GE benefit (provision) for income taxes, V% | 48.00% | |||
Industrial | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 21,383 | 20,665 | $ 62,293 | 62,908 |
Revenues, V% | 3.00% | (1.00%) | ||
Segment profit (loss) | $ 2,450 | 1,967 | $ 7,092 | 7,555 |
Segment profit (loss), V% | 25.00% | (6.00%) | ||
Industrial | Operating Segments | Power | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 3,926 | 4,559 | $ 13,224 | 16,768 |
Revenues, V% | (14.00%) | (21.00%) | ||
Segment profit (loss) | $ (144) | (676) | $ 84 | (22) |
Segment profit (loss), V% | 79.00% | |||
Industrial | Operating Segments | Renewable Energy | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 4,425 | 3,920 | $ 10,590 | 9,642 |
Revenues, V% | 13.00% | 10.00% | ||
Segment profit (loss) | $ (98) | 116 | $ (469) | 312 |
Industrial | Operating Segments | Aviation | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 8,109 | 7,480 | $ 23,940 | 22,111 |
Revenues, V% | 8.00% | 8.00% | ||
Segment profit (loss) | $ 1,718 | 1,665 | $ 4,764 | 4,743 |
Segment profit (loss), V% | 3.00% | 0.00% | ||
Industrial | Operating Segments | Healthcare | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 4,923 | 4,707 | $ 14,540 | 14,387 |
Revenues, V% | 5.00% | 1.00% | ||
Segment profit (loss) | $ 974 | 861 | $ 2,714 | 2,522 |
Segment profit (loss), V% | 13.00% | 8.00% | ||
Capital | Operating Segments | Capital | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,097 | 2,473 | $ 6,645 | 7,075 |
Revenues, V% | (15.00%) | (6.00%) | ||
Segment profit (loss) | $ (645) | $ 19 | $ (599) | $ (403) |
Segment profit (loss), V% | (49.00%) |