Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||
Dollars in millions; per-share amounts in dollars and diluted | 2020 | 2019 | Year on Year | 2020 | 2019 | Year on Year | ||||||||||||||
GAAP Metrics | ||||||||||||||||||||
GE Industrial Cash from Operating Activities (GE CFOA) | $1,921 | $4,537 | (58) | % | $(1,254) | $4,614 | U | |||||||||||||
Continuing EPS | 0.27 | 0.07 | F | 0.59 | (0.01) | F | ||||||||||||||
Net EPS | 0.27 | 0.06 | F | 0.58 | (0.62) | F | ||||||||||||||
Total Revenues | 21,928 | 26,238 | (16) | % | 79,619 | 95,214 | (16) | % | ||||||||||||
GE Industrial Profit Margin | 14.4 | % | 6.4 | % | 800 | bps | 10.0 | % | 2.1 | % | 790 | bps | ||||||||
Non-GAAP Metrics | ||||||||||||||||||||
GE Industrial Free Cash Flow (FCF) | $4,367 | $3,884 | 12 | % | $606 | $2,322 | (74) | % | ||||||||||||
Adjusted EPS-a) | 0.08 | 0.20 | (60) | % | 0.01 | 0.61 | (98) | % | ||||||||||||
GE Industrial Organic Revenues | 20,051 | 23,240 | (14) | % | 73,180 | 84,051 | (13) | % | ||||||||||||
Adjusted GE Industrial Profit-b) | 1,289 | 2,689 | (52) | % | 2,520 | 8,313 | (70) | % | ||||||||||||
Adjusted GE Industrial Profit Margin-b) | 6.4 | % | 11.0 | % | (460) | bps | 3.4 | % | 9.5 | % | (610) | bps |
Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||
(In millions) | 2020 | 2019 | Year on Year | 2020 | 2019 | Year on Year | ||||||||||||||
Orders | $5,616 | $4,457 | 26 | % | $15,986 | $16,899 | (5) | % | ||||||||||||
Revenues | 5,383 | 5,401 | — | % | 17,589 | 18,625 | (6) | % | ||||||||||||
Segment Profit/(Loss) | 306 | 297 | 3 | % | 274 | 291 | (6) | % | ||||||||||||
Segment Profit/(Loss) Margin | 5.7 | % | 5.5 | % | 20 | bps | 1.6 | % | 1.6 | % | — | bps |
Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||
(In millions) | 2020 | 2019 | Year on Year | 2020 | 2019 | Year on Year | ||||||||||||||
Orders | $6,292 | $4,680 | 34 | % | $16,328 | $16,884 | (3) | % | ||||||||||||
Revenues | 4,442 | 4,747 | (6) | % | 15,666 | 15,337 | 2 | % | ||||||||||||
Segment Profit/(Loss) | (87) | (227) | 62 | % | (715) | (791) | 10 | % | ||||||||||||
Segment Profit/(Loss) Margin | (2.0) | % | (4.8) | % | 280 | bps | (4.6) | % | (5.2) | % | 60 | bps |
Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||
(In millions) | 2020 | 2019 | Year on Year | 2020 | 2019 | Year on Year | ||||||||||||||
Orders | $6,331 | $10,664 | (41) | % | $21,590 | $36,738 | (41) | % | ||||||||||||
Revenues | 5,847 | 8,936 | (35) | % | 22,042 | 32,875 | (33) | % | ||||||||||||
Segment Profit/(Loss) | 564 | 2,054 | (73) | % | 1,229 | 6,812 | (82) | % | ||||||||||||
Segment Profit/(Loss) Margin | 9.6 | % | 23.0 | % | (1,340) | bps | 5.6 | % | 20.7 | % | (1,510) | bps |
Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||
(In millions) | 2020 | 2019 | Year on Year | 2020 | 2019 | Year on Year | ||||||||||||||
Orders | $4,983 | $5,896 | (15) | % | $18,645 | $21,172 | (12) | % | ||||||||||||
Revenues | 4,823 | 5,402 | (11) | % | 18,009 | 19,942 | (10) | % | ||||||||||||
Segment Profit/(Loss) | 949 | 1,138 | (17) | % | 3,060 | 3,737 | (18) | % | ||||||||||||
Segment Profit/(Loss) Margin | 19.7 | % | 21.1 | % | (140) | bps | 17.0 | % | 18.7 | % | (170) | bps |
Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||
(In millions) | 2020 | 2019 | Year on Year | 2020 | 2019 | Year on Year | ||||||||||||||
Capital continuing operations | $(151) | $69 | U | $(1,710) | $(530) | U | ||||||||||||||
Discontinued operations | 83 | (63) | F | (90) | 192 | U | ||||||||||||||
GE Capital Earnings | $(69) | $6 | U | $(1,800) | $(338) | U |
(In billions) | December 31, 2020 | December 31, 2019 | Variance | ||||||||
GE Capital continuing operations assets | $113.5 | $117.5 | $(4.0) |
GENERAL ELECTRIC COMPANY | |||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED STATEMENT OF EARNINGS (LOSS) (UNAUDITED) | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | GE Industrial | GE Capital | |||||||||||||||||||||||||||||||||||||||||||||
Three months ended December 31 | 2020 | 2019 | V% | 2020 | 2019 | V% | 2020 | 2019 | V% | ||||||||||||||||||||||||||||||||||||||
Sales of goods and services | $ | 20,271 | $ | 24,355 | (17) | % | $ | 20,271 | $ | 24,460 | (17) | % | $ | 8 | $ | 22 | (64) | % | |||||||||||||||||||||||||||||
GE Capital revenues from services | 1,657 | 1,883 | — | — | 1,788 | 2,073 | |||||||||||||||||||||||||||||||||||||||||
Total revenues | 21,928 | 26,238 | (16) | % | 20,271 | 24,460 | (17) | % | 1,796 | 2,096 | (14) | % | |||||||||||||||||||||||||||||||||||
Cost of sales | 16,296 | 18,222 | 15,772 | 17,821 | 532 | 528 | |||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 3,250 | 3,829 | 3,039 | 3,670 | 280 | 254 | |||||||||||||||||||||||||||||||||||||||||
Research & development | 635 | 859 | 635 | 859 | — | — | |||||||||||||||||||||||||||||||||||||||||
Interest and other financial charges | 737 | 955 | 254 | 423 | 539 | 619 | |||||||||||||||||||||||||||||||||||||||||
Insurance losses and annuity benefits | 573 | 582 | — | — | 572 | 583 | |||||||||||||||||||||||||||||||||||||||||
Goodwill impairments | — | 2 | — | 2 | — | — | |||||||||||||||||||||||||||||||||||||||||
Non-operating benefit costs | 611 | 1,150 | 609 | 1,144 | 2 | 6 | |||||||||||||||||||||||||||||||||||||||||
Other costs and expenses | 62 | 120 | — | — | 74 | 101 | |||||||||||||||||||||||||||||||||||||||||
Total costs and expenses | 22,164 | 25,718 | (14) | % | 20,310 | 23,917 | (15) | % | 2,000 | 2,090 | (4) | % | |||||||||||||||||||||||||||||||||||
Other income | 2,957 | 1,052 | 2,964 | 1,023 | — | — | |||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations before income taxes | 2,721 | 1,571 | F | 2,925 | 1,565 | F | (204) | 6 | U | ||||||||||||||||||||||||||||||||||||||
Benefit (provision) for income taxes | (162) | (727) | (410) | (982) | 248 | 255 | |||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | 2,559 | 845 | F | 2,515 | 583 | F | 44 | 262 | (83) | % | |||||||||||||||||||||||||||||||||||||
Earnings (loss) from discontinued operations, net of taxes | 81 | (123) | (2) | (61) | 83 | (63) | |||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) | 2,640 | 721 | F | 2,513 | 522 | F | 127 | 199 | (36) | % | |||||||||||||||||||||||||||||||||||||
Less net earnings (loss) attributable to noncontrolling interests | 3 | (7) | 2 | (9) | 1 | 2 | |||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) attributable to the Company | 2,636 | 728 | F | 2,511 | 532 | F | 125 | 197 | (37) | % | |||||||||||||||||||||||||||||||||||||
Preferred stock dividends | (194) | (190) | — | — | (194) | (190) | |||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) attributable to GE common shareholders | $ | 2,442 | $ | 538 | F | $ | 2,511 | $ | 532 | F | $ | (69) | $ | 6 | U | ||||||||||||||||||||||||||||||||
Amounts attributable to GE common shareholders: | |||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | $ | 2,559 | $ | 845 | F | $ | 2,515 | $ | 583 | F | $ | 44 | $ | 262 | (83) | % | |||||||||||||||||||||||||||||||
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | 1 | (9) | — | (11) | 1 | 2 | |||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to the Company | 2,558 | 854 | F | 2,515 | 594 | F | 43 | 259 | (83) | % | |||||||||||||||||||||||||||||||||||||
Preferred stock dividends | (194) | (190) | — | — | (194) | (190) | |||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to GE common shareholders | 2,364 | 663 | F | 2,515 | 594 | F | (151) | 69 | U | ||||||||||||||||||||||||||||||||||||||
Earnings (loss) from discontinued operations, net of taxes | 81 | (123) | (2) | (61) | 83 | (63) | |||||||||||||||||||||||||||||||||||||||||
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | 2 | 2 | 2 | 2 | — | — | |||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) attributable to GE common shareholders | $ | 2,442 | $ | 538 | F | $ | 2,511 | $ | 532 | F | $ | (69) | $ | 6 | U | ||||||||||||||||||||||||||||||||
Per-share amounts - earnings (loss) from continuing operations | |||||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | 0.27 | $ | 0.07 | F | ||||||||||||||||||||||||||||||||||||||||||
Basic earnings (loss) per share | $ | 0.27 | $ | 0.08 | F | ||||||||||||||||||||||||||||||||||||||||||
Per-share amounts - net earnings (loss) | |||||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | 0.27 | $ | 0.06 | F | ||||||||||||||||||||||||||||||||||||||||||
Basic earnings (loss) per share | $ | 0.28 | $ | 0.06 | F | ||||||||||||||||||||||||||||||||||||||||||
Total average equivalent shares | |||||||||||||||||||||||||||||||||||||||||||||||
Diluted | 8,779 | 8,742 | — | % | |||||||||||||||||||||||||||||||||||||||||||
Basic | 8,762 | 8,736 | — | % | |||||||||||||||||||||||||||||||||||||||||||
Dividends declared per common share | $ | 0.01 | $ | 0.01 | — | % |
GENERAL ELECTRIC COMPANY | |||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED STATEMENT OF EARNINGS (LOSS) (UNAUDITED) | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | GE Industrial | GE Capital | |||||||||||||||||||||||||||||||||||||||||||||
Twelve months ended December 31 | 2020 | 2019 | V% | 2020 | 2019 | V% | 2020 | 2019 | V% | ||||||||||||||||||||||||||||||||||||||
Sales of goods and services | $ | 73,022 | $ | 87,487 | (17) | % | $ | 73,100 | $ | 87,719 | (17) | % | $ | 57 | $ | 79 | (28) | % | |||||||||||||||||||||||||||||
GE Capital revenues from services | 6,597 | 7,728 | — | — | 7,188 | 8,662 | |||||||||||||||||||||||||||||||||||||||||
Total revenues | 79,619 | 95,214 | (16) | % | 73,100 | 87,719 | (17) | % | 7,245 | 8,741 | (17) | % | |||||||||||||||||||||||||||||||||||
Cost of sales | 60,421 | 66,911 | 57,981 | 65,166 | 2,575 | 2,080 | |||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 12,621 | 13,949 | 12,073 | 13,404 | 823 | 931 | |||||||||||||||||||||||||||||||||||||||||
Research & development | 2,565 | 3,118 | 2,565 | 3,118 | — | — | |||||||||||||||||||||||||||||||||||||||||
Interest and other financial charges | 3,273 | 4,227 | 1,333 | 2,115 | 2,186 | 2,532 | |||||||||||||||||||||||||||||||||||||||||
Insurance liabilities and annuity benefits | 2,397 | 3,294 | — | — | 2,438 | 3,353 | |||||||||||||||||||||||||||||||||||||||||
Goodwill impairments | 1,717 | 1,486 | 877 | 1,486 | 839 | — | |||||||||||||||||||||||||||||||||||||||||
Non-operating benefit costs | 2,433 | 2,844 | 2,424 | 2,828 | 9 | 16 | |||||||||||||||||||||||||||||||||||||||||
Other costs and expenses | 384 | 458 | — | — | 469 | 480 | |||||||||||||||||||||||||||||||||||||||||
Total costs and expenses | 85,809 | 96,287 | (11) | % | 77,252 | 88,118 | (12) | % | 9,339 | 9,392 | (1) | % | |||||||||||||||||||||||||||||||||||
Other income | 11,387 | 2,222 | 11,444 | 2,200 | — | — | |||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations before income taxes | 5,197 | 1,149 | F | 7,291 | 1,801 | F | (2,095) | (652) | U | ||||||||||||||||||||||||||||||||||||||
Benefit (provision) for income taxes | 474 | (726) | (388) | (1,309) | 862 | 582 | |||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | 5,672 | 423 | F | 6,904 | 492 | F | (1,232) | (69) | U | ||||||||||||||||||||||||||||||||||||||
Earnings (loss) from discontinued operations, net of taxes | (125) | (5,335) | (35) | (5,527) | (90) | 192 | |||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) | 5,546 | (4,912) | F | 6,868 | (5,035) | F | (1,322) | 123 | U | ||||||||||||||||||||||||||||||||||||||
Less net earnings (loss) attributable to noncontrolling interests | (158) | 66 | (161) | 66 | 3 | 1 | |||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) attributable to the Company | 5,704 | (4,979) | F | 7,029 | (5,101) | F | (1,325) | 122 | U | ||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | (474) | (460) | — | — | (474) | (460) | |||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) attributable to GE common shareholders | $ | 5,230 | $ | (5,439) | F | $ | 7,029 | $ | (5,101) | F | $ | (1,800) | $ | (338) | U | ||||||||||||||||||||||||||||||||
Amounts attributable to GE common shareholders: | |||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | $ | 5,672 | $ | 423 | F | $ | 6,904 | $ | 492 | F | $ | (1,232) | $ | (69) | U | ||||||||||||||||||||||||||||||||
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | (158) | 7 | (161) | 6 | 3 | 1 | |||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to the Company | 5,829 | 416 | F | 7,065 | 486 | F | (1,235) | (70) | U | ||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | (474) | (460) | — | — | (474) | (460) | |||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to GE common shareholders | 5,355 | (44) | F | 7,065 | 486 | F | (1,710) | (530) | U | ||||||||||||||||||||||||||||||||||||||
Earnings (loss) from discontinued operations, net of taxes | (125) | (5,335) | (35) | (5,527) | (90) | 192 | |||||||||||||||||||||||||||||||||||||||||
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | — | 60 | — | 60 | — | — | |||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) attributable to GE common shareholders | $ | 5,230 | $ | (5,439) | F | $ | 7,029 | $ | (5,101) | F | $ | (1,800) | $ | (338) | U | ||||||||||||||||||||||||||||||||
Per-share amounts - earnings (loss) from continuing operations | |||||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | 0.59 | $ | (0.01) | F | ||||||||||||||||||||||||||||||||||||||||||
Basic earnings (loss) per share | $ | 0.59 | $ | (0.01) | F | ||||||||||||||||||||||||||||||||||||||||||
Per-share amounts - net earnings (loss) | |||||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | 0.58 | $ | (0.62) | F | ||||||||||||||||||||||||||||||||||||||||||
Basic earnings (loss) per share | $ | 0.58 | $ | (0.62) | F | ||||||||||||||||||||||||||||||||||||||||||
Total average equivalent shares | |||||||||||||||||||||||||||||||||||||||||||||||
Diluted | 8,761 | 8,724 | — | % | |||||||||||||||||||||||||||||||||||||||||||
Basic | 8,753 | 8,724 | — | % | |||||||||||||||||||||||||||||||||||||||||||
Dividends declared per common share | $ | 0.04 | $ | 0.04 | — | % |
GENERAL ELECTRIC COMPANY | |||||||||||||||||||||||||||||||||||
SUMMARY OF OPERATING SEGMENTS (UNAUDITED) | |||||||||||||||||||||||||||||||||||
Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | V% | 2020 | 2019 | V% | |||||||||||||||||||||||||||||
Revenues(a) | |||||||||||||||||||||||||||||||||||
Power | $ | 5,383 | $ | 5,401 | — | % | $ | 17,589 | $ | 18,625 | (6) | % | |||||||||||||||||||||||
Renewable Energy | 4,442 | 4,747 | (6) | % | 15,666 | 15,337 | 2 | % | |||||||||||||||||||||||||||
Aviation | 5,847 | 8,936 | (35) | % | 22,042 | 32,875 | (33) | % | |||||||||||||||||||||||||||
Healthcare | 4,823 | 5,402 | (11) | % | 18,009 | 19,942 | (10) | % | |||||||||||||||||||||||||||
Capital | 1,796 | 2,096 | (14) | % | 7,245 | 8,741 | (17) | % | |||||||||||||||||||||||||||
Total segment revenues | 22,290 | 26,581 | (16) | % | 80,551 | 95,519 | (16) | % | |||||||||||||||||||||||||||
Corporate items and eliminations(a) | (362) | (343) | (6) | % | (932) | (305) | U | ||||||||||||||||||||||||||||
Consolidated revenues | $ | 21,928 | $ | 26,238 | (16) | % | $ | 79,619 | $ | 95,214 | (16) | % | |||||||||||||||||||||||
Segment profit (loss)(a) | |||||||||||||||||||||||||||||||||||
Power | $ | 306 | $ | 297 | 3 | % | $ | 274 | $ | 291 | (6) | % | |||||||||||||||||||||||
Renewable Energy | (87) | (227) | 62 | % | (715) | (791) | 10 | % | |||||||||||||||||||||||||||
Aviation | 564 | 2,054 | (73) | % | 1,229 | 6,812 | (82) | % | |||||||||||||||||||||||||||
Healthcare | 949 | 1,138 | (17) | % | 3,060 | 3,737 | (18) | % | |||||||||||||||||||||||||||
Capital | (151) | 69 | U | (1,710) | (530) | U | |||||||||||||||||||||||||||||
Total segment profit (loss) | 1,581 | 3,331 | (53) | % | 2,138 | 9,519 | (78) | % | |||||||||||||||||||||||||||
Corporate items and eliminations(a) | 2,057 | (117) | F | 8,239 | (1,825) | F | |||||||||||||||||||||||||||||
GE Industrial goodwill impairments | — | (2) | F | (877) | (1,486) | 41 | % | ||||||||||||||||||||||||||||
GE Industrial interest and other financial charges | (254) | (423) | 40 | % | (1,333) | (2,115) | 37 | % | |||||||||||||||||||||||||||
GE Industrial non-operating benefit costs | (609) | (1,144) | 47 | % | (2,424) | (2,828) | 14 | % | |||||||||||||||||||||||||||
GE Industrial benefit (provision) for income taxes | (410) | (982) | 58 | % | (388) | (1,309) | 70 | % | |||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to GE common shareholders | 2,364 | 663 | F | 5,355 | (44) | F | |||||||||||||||||||||||||||||
Earnings (loss) from discontinued operations, net of taxes | 81 | (123) | F | (125) | (5,335) | 98 | % | ||||||||||||||||||||||||||||
Less net earnings attributable to noncontrolling interests, discontinued operations | 2 | 2 | — | % | — | 60 | (100) | % | |||||||||||||||||||||||||||
Earnings (loss) from discontinued operations, net of tax and noncontrolling interests | 78 | (125) | F | (125) | (5,395) | 98 | % | ||||||||||||||||||||||||||||
Consolidated net earnings (loss) attributable to GE common shareholders | $ | 2,442 | $ | 538 | F | $ | 5,230 | $ | (5,439) | F |
GENERAL ELECTRIC COMPANY STATEMENT OF FINANCIAL POSITION (UNAUDITED) | ||||||||||||||||||||||||||||||||||||||
Consolidated | GE Industrial | GE Capital | ||||||||||||||||||||||||||||||||||||
December 31 | December 31 | December 31 | December 31 | December 31 | December 31 | |||||||||||||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash(a)(b)(c) | $ | 36,630 | $ | 35,811 | $ | 23,209 | $ | 17,613 | $ | 13,421 | $ | 18,198 | ||||||||||||||||||||||||||
Investment securities | 7,319 | 9,888 | 7,319 | 9,888 | — | — | ||||||||||||||||||||||||||||||||
Current receivables | 16,691 | 16,568 | 13,442 | 13,682 | — | — | ||||||||||||||||||||||||||||||||
Financing receivables – net | 1,265 | 1,077 | — | — | 5,110 | 4,922 | ||||||||||||||||||||||||||||||||
Inventories, including deferred inventory costs | 15,890 | 17,215 | 15,890 | 17,215 | — | — | ||||||||||||||||||||||||||||||||
Other GE Capital receivables | 3,331 | 2,635 | — | — | 5,069 | 6,881 | ||||||||||||||||||||||||||||||||
Receivable from GE Capital | — | — | 2,432 | 2,104 | — | — | ||||||||||||||||||||||||||||||||
Current contract assets | 5,764 | 7,390 | 5,764 | 7,390 | — | — | ||||||||||||||||||||||||||||||||
All other current assets | 1,522 | 3,362 | 835 | 852 | 1,021 | 2,936 | ||||||||||||||||||||||||||||||||
Assets of businesses held for sale | — | 9,149 | — | 8,626 | — | 241 | ||||||||||||||||||||||||||||||||
Current assets | 88,412 | 103,096 | 68,892 | 77,371 | 24,621 | 33,177 | ||||||||||||||||||||||||||||||||
Investment securities | 42,549 | 38,632 | 36 | 120 | 42,515 | 38,514 | ||||||||||||||||||||||||||||||||
Financing receivables – net | 1,771 | 2,057 | — | — | 1,771 | 2,057 | ||||||||||||||||||||||||||||||||
Other GE Capital receivables | 4,661 | 4,509 | — | — | 5,076 | 4,886 | ||||||||||||||||||||||||||||||||
Property, plant and equipment – net | 44,662 | 45,879 | 16,433 | 17,447 | 29,600 | 29,886 | ||||||||||||||||||||||||||||||||
Receivable from GE Capital(e)(f) | — | — | 16,780 | 17,038 | — | — | ||||||||||||||||||||||||||||||||
Goodwill | 25,524 | 26,734 | 25,524 | 25,895 | — | 839 | ||||||||||||||||||||||||||||||||
Other intangible assets – net | 9,774 | 10,653 | 9,632 | 10,461 | 143 | 192 | ||||||||||||||||||||||||||||||||
Contract and other deferred assets | 5,888 | 5,737 | 5,921 | 5,769 | — | — | ||||||||||||||||||||||||||||||||
All other assets | 14,597 | 13,882 | 7,948 | 7,748 | 7,068 | 6,294 | ||||||||||||||||||||||||||||||||
Deferred income taxes | 12,081 | 9,889 | 9,350 | 8,189 | 2,731 | 1,700 | ||||||||||||||||||||||||||||||||
Assets of discontinued operations | 3,532 | 4,109 | 144 | 202 | 3,388 | 3,907 | ||||||||||||||||||||||||||||||||
Total assets | $ | 253,452 | $ | 265,177 | $ | 160,658 | $ | 170,238 | $ | 116,914 | $ | 121,454 | ||||||||||||||||||||||||||
Short-term borrowings(d)(f) | $ | 4,778 | $ | 23,641 | $ | 918 | $ | 5,606 | $ | 2,028 | $ | 13,598 | ||||||||||||||||||||||||||
Short-term borrowings assumed by GE(e) | — | — | 2,432 | 5,473 | 2,432 | 2,104 | ||||||||||||||||||||||||||||||||
Accounts payable and equipment project accruals | 16,476 | 17,357 | 16,380 | 19,134 | 947 | 886 | ||||||||||||||||||||||||||||||||
Progress collections and deferred income | 18,215 | 18,389 | 18,371 | 18,575 | — | — | ||||||||||||||||||||||||||||||||
All other current liabilities | 16,600 | 17,821 | 14,131 | 15,251 | 3,890 | 4,052 | ||||||||||||||||||||||||||||||||
Liabilities of businesses held for sale | — | 1,658 | — | 1,620 | — | 52 | ||||||||||||||||||||||||||||||||
Current liabilities | 56,069 | 78,865 | 52,232 | 65,660 | 9,297 | 20,691 | ||||||||||||||||||||||||||||||||
Deferred income | 1,801 | 1,555 | 1,801 | 1,555 | — | — | ||||||||||||||||||||||||||||||||
Long-term borrowing(f) | 70,288 | 67,241 | 19,428 | 15,085 | 30,902 | 26,261 | ||||||||||||||||||||||||||||||||
Long-term borrowings assumed by GE(e) | — | — | 19,957 | 25,895 | 16,780 | 17,038 | ||||||||||||||||||||||||||||||||
Insurance liabilities and annuity benefits | 42,191 | 39,826 | — | — | 42,565 | 40,232 | ||||||||||||||||||||||||||||||||
Non-current compensation and benefits | 29,752 | 31,687 | 29,291 | 31,208 | 453 | 472 | ||||||||||||||||||||||||||||||||
All other liabilities | 16,077 | 15,938 | 16,440 | 16,306 | 1,151 | 1,226 | ||||||||||||||||||||||||||||||||
Liabilities of discontinued operations | 200 | 203 | 139 | 106 | 61 | 97 | ||||||||||||||||||||||||||||||||
GE shareholders’ equity | 35,552 | 28,316 | 20,006 | 13,017 | 15,545 | 15,299 | ||||||||||||||||||||||||||||||||
Noncontrolling interests | 1,522 | 1,545 | 1,363 | 1,406 | 159 | 139 | ||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 253,452 | $ | 265,177 | $ | 160,658 | $ | 170,238 | $ | 116,914 | $ | 121,454 |
GE INDUSTRIAL ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | Segment profit (loss) | Profit margin | |||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended December 31 (In millions) | 2020 | 2019 | V% | 2020 | 2019 | V% | 2020 | 2019 | V pts | ||||||||||||||||||||||||||||||||||||||||||||
Power (GAAP) | $ | 5,383 | $ | 5,401 | — | % | $ | 306 | $ | 297 | 3 | % | 5.7 | % | 5.5 | % | 0.2pts | ||||||||||||||||||||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: business dispositions | — | 22 | — | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: foreign currency effect | 47 | — | (7) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Power organic (Non-GAAP) | $ | 5,336 | $ | 5,379 | (1) | % | $ | 313 | $ | 294 | 6 | % | 5.9 | % | 5.5 | % | 0.4pts | ||||||||||||||||||||||||||||||||||||
Renewable Energy (GAAP) | $ | 4,442 | $ | 4,747 | (6) | % | $ | (87) | $ | (227) | 62 | % | (2.0) | % | (4.8) | % | 2.8pts | ||||||||||||||||||||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: business dispositions | — | 34 | — | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: foreign currency effect | 63 | — | (4) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Renewable Energy organic (Non-GAAP) | $ | 4,379 | $ | 4,713 | (7) | % | $ | (82) | $ | (224) | 63 | % | (1.9) | % | (4.8) | % | 2.9pts | ||||||||||||||||||||||||||||||||||||
Aviation (GAAP) | $ | 5,847 | $ | 8,936 | (35) | % | $ | 564 | $ | 2,054 | (73) | % | 9.6 | % | 23.0 | % | (13.4)pts | ||||||||||||||||||||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: business dispositions | — | 70 | — | (18) | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: foreign currency effect | (1) | — | (8) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Aviation organic (Non-GAAP) | $ | 5,848 | $ | 8,866 | (34) | % | $ | 571 | $ | 2,072 | (72) | % | 9.8 | % | 23.4 | % | (13.6)pts | ||||||||||||||||||||||||||||||||||||
Healthcare (GAAP) | $ | 4,823 | $ | 5,402 | (11) | % | $ | 949 | $ | 1,138 | (17) | % | 19.7 | % | 21.1 | % | (1.4)pts | ||||||||||||||||||||||||||||||||||||
Less: acquisitions | 19 | — | 4 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: business dispositions | — | 947 | — | 409 | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: foreign currency effect | 68 | — | 22 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Healthcare organic (Non-GAAP) | $ | 4,736 | $ | 4,455 | 6 | % | $ | 923 | $ | 729 | 27 | % | 19.5 | % | 16.4 | % | 3.1pts | ||||||||||||||||||||||||||||||||||||
GE INDUSTRIAL ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | Segment profit (loss) | Profit margin | |||||||||||||||||||||||||||||||||||||||||||||||||||
Twelve months ended December 31 (In millions) | 2020 | 2019 | V% | 2020 | 2019 | V% | 2020 | 2019 | V pts | ||||||||||||||||||||||||||||||||||||||||||||
Power (GAAP) | $ | 17,589 | $ | 18,625 | (6) | % | $ | 274 | $ | 291 | (6) | % | 1.6 | % | 1.6 | % | —pts | ||||||||||||||||||||||||||||||||||||
Less: acquisitions | 19 | 19 | (3) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: business dispositions | 15 | 104 | 2 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: foreign currency effect | (64) | — | 10 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Power organic (Non-GAAP) | $ | 17,619 | $ | 18,502 | (5) | % | $ | 266 | $ | 287 | (7) | % | 1.5 | % | 1.6 | % | (0.1)pts | ||||||||||||||||||||||||||||||||||||
Renewable Energy (GAAP) | $ | 15,666 | $ | 15,337 | 2 | % | $ | (715) | $ | (791) | 10 | % | (4.6) | % | (5.2) | % | 0.6pts | ||||||||||||||||||||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: business dispositions | 8 | 94 | — | (11) | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: foreign currency effect | (167) | — | 16 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Renewable Energy organic (Non-GAAP) | $ | 15,824 | $ | 15,243 | 4 | % | $ | (731) | $ | (781) | 6 | % | (4.6) | % | (5.1) | % | 0.5pts | ||||||||||||||||||||||||||||||||||||
Aviation (GAAP) | $ | 22,042 | $ | 32,875 | (33) | % | $ | 1,229 | $ | 6,812 | (82) | % | 5.6 | % | 20.7 | % | (15.1)pts | ||||||||||||||||||||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: business dispositions | 13 | 369 | (2) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: foreign currency effect | (3) | — | (5) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Aviation organic (Non-GAAP) | $ | 22,032 | $ | 32,506 | (32) | % | $ | 1,237 | $ | 6,814 | (82) | % | 5.6 | % | 21.0 | % | (15.4)pts | ||||||||||||||||||||||||||||||||||||
Healthcare (GAAP) | $ | 18,009 | $ | 19,942 | (10) | % | $ | 3,060 | $ | 3,737 | (18) | % | 17.0 | % | 18.7 | % | (1.7)pts | ||||||||||||||||||||||||||||||||||||
Less: acquisitions | 55 | 21 | (13) | (4) | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: business dispositions | 21 | 2,603 | (2) | 1,111 | |||||||||||||||||||||||||||||||||||||||||||||||||
Less: foreign currency effect | (46) | — | (6) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Healthcare organic (Non-GAAP) | $ | 17,979 | $ | 17,318 | 4 | % | $ | 3,081 | $ | 2,630 | 17 | % | 17.1 | % | 15.2 | % | 1.9pts | ||||||||||||||||||||||||||||||||||||
We believe these measures provide management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, as these activities can obscure underlying trends. We also believe presenting organic revenues* and organic profit* separately for our industrial businesses provides management and investors with useful information about the trends of our industrial businesses and enables a more direct comparison to other non-financial companies. |
GE INDUSTRIAL ORGANIC REVENUES (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(In millions) | 2020 | 2019 | V% | 2020 | 2019 | V% | |||||||||||||||||
GE Industrial revenues (GAAP) | $ | 20,271 | $ | 24,460 | (17) | % | $ | 73,100 | $ | 87,719 | (17) | % | |||||||||||
Adjustments: | |||||||||||||||||||||||
Less: acquisitions | 35 | (8) | 138 | 37 | |||||||||||||||||||
Less: business dispositions | — | 1,228 | 58 | 3,631 | |||||||||||||||||||
Less: foreign currency effect | 185 | — | (276) | — | |||||||||||||||||||
GE Industrial organic revenues (Non-GAAP) | $ | 20,051 | $ | 23,240 | (14) | % | $ | 73,180 | $ | 84,051 | (13) | % | |||||||||||
We believe these measures provide management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, as these activities can obscure underlying trends. |
GAS POWER ORGANIC REVENUES (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | V% | 2020 | 2019 | V% | |||||||||||||||||
Gas Power revenues (GAAP) | $ | 3,778 | $ | 3,880 | (3) | % | $ | 12,655 | $ | 13,122 | (4) | % | |||||||||||
Adjustments: | |||||||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||
Less: business dispositions | — | — | — | 3 | |||||||||||||||||||
Less: foreign currency effect | 9 | — | (16) | — | |||||||||||||||||||
Gas Power organic revenues (Non-GAAP) | $ | 3,769 | $ | 3,880 | (3) | % | $ | 12,671 | $ | 13,118 | (3) | % |
POWER PORTFOLIO ORGANIC REVENUES (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | V% | 2020 | 2019 | V% | |||||||||||||||||
Power Portfolio revenues (GAAP) | $ | 1,605 | $ | 1,521 | 6 | % | $ | 4,935 | $ | 5,503 | (10) | % | |||||||||||
Adjustments: | |||||||||||||||||||||||
Less: acquisitions | — | — | 19 | 19 | |||||||||||||||||||
Less: business dispositions | — | 22 | 15 | 100 | |||||||||||||||||||
Less: foreign currency effect | 38 | — | (48) | — | |||||||||||||||||||
Power Portfolio organic revenues (Non-GAAP) | $ | 1,567 | $ | 1,499 | 5 | % | $ | 4,948 | $ | 5,384 | (8) | % | |||||||||||
GAS POWER FIXED COSTS (NON-GAAP) | Three months ended December 31 | ||||||||||
(Dollars in millions) | 2020 | 2019 | V% | ||||||||
Gas Power total costs and expenses (GAAP) | $ | 3,574 | 3,570 | ||||||||
Less: Gas Power variable costs | 2,914 | 2,817 | |||||||||
Gas Power Fixed Costs (Non-GAAP) | $ | 661 | $ | 753 | (12) | % | |||||
We believe that fixed costs* is a meaningful measure as it is broader than selling, general and administrative costs and represents the costs in the segments that generally do not vary with volume. Segment variable costs* are those costs within our industrial segments that vary with volume. The most significant variable costs would be material and direct labor costs incurred to produce our products and deliver our services that are recorded in the Statement of Earnings line items of cost of goods and cost of services sold. |
ADJUSTED GE INDUSTRIAL PROFIT AND PROFIT MARGIN | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(EXCLUDING CERTAIN ITEMS) (NON-GAAP) (Dollars in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
GE Industrial total revenues (GAAP) | $ | 20,271 | $ | 24,460 | (17) | % | $ | 73,100 | $ | 87,719 | (17) | % | |||||||||||
Costs | |||||||||||||||||||||||
GE Industrial total costs and expenses (GAAP) | $ | 20,310 | $ | 23,917 | (15) | % | $ | 77,252 | $ | 88,118 | (12) | % | |||||||||||
Less: GE Industrial interest and other financial charges | 254 | 423 | 1,333 | 2,115 | |||||||||||||||||||
Less: non-operating benefit costs | 609 | 1,144 | 2,424 | 2,828 | |||||||||||||||||||
Less: restructuring & other | 170 | 340 | 693 | 922 | |||||||||||||||||||
Less: Steam asset impairments | — | — | 363 | — | |||||||||||||||||||
Less: SEC settlement | — | — | 100 | — | |||||||||||||||||||
Less: goodwill impairments | — | 2 | 728 | 1,486 | |||||||||||||||||||
Add: noncontrolling interests | — | (11) | (161) | 6 | |||||||||||||||||||
Adjusted GE Industrial costs (Non-GAAP) | $ | 19,276 | $ | 21,998 | (12) | % | $ | 71,450 | $ | 80,773 | (12) | % | |||||||||||
Other Income | |||||||||||||||||||||||
GE Industrial other income (GAAP) | $ | 2,964 | $ | 1,023 | F | $ | 11,444 | $ | 2,200 | F | |||||||||||||
Less: unrealized gains (losses) | 2,817 | 917 | (1,911) | 793 | |||||||||||||||||||
Less: restructuring & other | 13 | 27 | 13 | 36 | |||||||||||||||||||
Less: gains (losses) and impairments for disposed or held for sale businesses | (160) | (148) | 12,472 | 4 | |||||||||||||||||||
Adjusted GE Industrial other income (Non-GAAP) | $ | 294 | $ | 227 | 30 | % | $ | 871 | $ | 1,367 | (36) | % | |||||||||||
GE Industrial profit (GAAP) | $ | 2,925 | $ | 1,565 | $ | — | $ | 7,291 | $ | 1,801 | F | ||||||||||||
GE Industrial profit margin (GAAP) | 14.4 | % | 6.4 | % | 800 bps | 10.0 | % | 2.1 | % | 790 bps | |||||||||||||
Adjusted GE Industrial profit (Non-GAAP) | $ | 1,289 | $ | 2,689 | (52) | % | $ | 2,520 | $ | 8,313 | (70) | % | |||||||||||
Adjusted GE Industrial profit margin (Non-GAAP) | 6.4 | % | 11.0 | % | 460 bps | 3.4 | % | 9.5 | % | 610 bps | |||||||||||||
We believe these measures are meaningful because they increase the comparability of period-to-period results. |
ADJUSTED GE INDUSTRIAL ORGANIC PROFIT | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(NON-GAAP) Dollars in millions) | 2020 | 2019 | V% | 2020 | 2019 | V% | |||||||||||||||||
Adjusted GE Industrial profit (Non-GAAP) | $ | 1,289 | $ | 2,689 | (52) | % | $ | 2,520 | $ | 8,313 | (70) | % | |||||||||||
Adjustments: | |||||||||||||||||||||||
Less: acquisitions | 5 | 12 | (4) | 6 | |||||||||||||||||||
Less: business dispositions | — | 368 | (3) | 1,064 | |||||||||||||||||||
Less: foreign currency effect | 7 | — | 22 | — | |||||||||||||||||||
Adjusted GE Industrial organic profit (Non-GAAP) | $ | 1,277 | $ | 2,308 | (45) | % | $ | 2,505 | $ | 7,244 | (65) | % | |||||||||||
Adjusted GE Industrial profit margin (Non-GAAP) | 6.4 | % | 11.0 | % | 460 bps | 3.4 | % | 9.5 | % | 610 bps | |||||||||||||
Adjusted GE Industrial organic profit margin (Non-GAAP) | 6.4 | % | 9.9 | % | 350 bps | 3.4 | % | 8.6 | % | 520 bps | |||||||||||||
We believe that this measure provides management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, as these activities can obscure underlying trends. |
ADJUSTED EARNINGS (LOSS) (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | V% | 2020 | 2019 | V% | |||||||||||||||||
Consolidated earnings (loss) from continuing operations attributable to GE common shareholders (GAAP) | $ | 2,341 | $ | 654 | F | $ | 5,342 | $ | (45) | F | |||||||||||||
Add: Accretion of redeemable noncontrolling interests (RNCI) | (10) | — | (151) | — | |||||||||||||||||||
Less: GE Capital earnings (loss) from continuing operations attributable to GE common shareholders (GAAP) | (151) | 69 | U | (1,710) | (530) | U | |||||||||||||||||
GE Industrial earnings (loss) (Non-GAAP) | 2,482 | 585 | F | 6,901 | 485 | F | |||||||||||||||||
Non-operating benefits costs (pre-tax) (GAAP) | (609) | (1,144) | (2,424) | (2,828) | |||||||||||||||||||
Tax effect on non-operating benefit costs | 128 | 240 | 509 | 594 | |||||||||||||||||||
Less: non-operating benefit costs (net of tax) | (481) | (904) | (1,915) | (2,234) | |||||||||||||||||||
Gains (losses) and impairments for disposed or held for sale businesses (pre-tax) | (160) | (148) | 12,472 | 4 | |||||||||||||||||||
Tax effect on gains (losses) and impairments for disposed or held for sale businesses | 190 | 31 | (1,080) | 34 | |||||||||||||||||||
Less: gains (losses) and impairments for disposed or held for sale businesses (net of tax) | 30 | (117) | 11,392 | 39 | |||||||||||||||||||
Restructuring & other (pre-tax) | (157) | (313) | (680) | (886) | |||||||||||||||||||
Tax effect on restructuring & other | 33 | 68 | 151 | 187 | |||||||||||||||||||
Less: restructuring & other (net of tax) | (124) | (244) | (529) | (699) | |||||||||||||||||||
Less: SEC Settlement (pre-tax and net of tax) | — | — | (100) | — | |||||||||||||||||||
Steam asset impairments (pre-tax) | — | — | (363) | — | |||||||||||||||||||
Tax effect on Steam asset impairments | — | — | 37 | — | |||||||||||||||||||
Less: Steam asset impairments (net of tax) | — | — | (326) | — | |||||||||||||||||||
Goodwill impairments (pre-tax) | — | (2) | (728) | (1,486) | |||||||||||||||||||
Tax effect on goodwill impairments | — | — | (23) | (55) | |||||||||||||||||||
Less: goodwill impairments (net of tax) | — | (2) | (751) | (1,541) | |||||||||||||||||||
Unrealized gains (losses) (pre-tax) | 2,817 | 917 | (1,911) | 793 | |||||||||||||||||||
Tax on unrealized gains (losses) | (491) | (140) | 460 | (114) | |||||||||||||||||||
Less: unrealized gains (losses) | 2,326 | 777 | (1,451) | 679 | |||||||||||||||||||
Debt extinguishment costs (pre-tax) | — | — | (63) | (255) | |||||||||||||||||||
Tax effect on debt extinguishment costs | — | — | 13 | 53 | |||||||||||||||||||
Less: debt extinguishment costs (net of tax) | — | — | (50) | (201) | |||||||||||||||||||
BioPharma deal expense (pre-tax) | — | — | — | — | |||||||||||||||||||
Tax on BioPharma deal expense | — | (633) | — | (647) | |||||||||||||||||||
Less: BioPharma deal expense (net of tax) | — | (633) | — | (647) | |||||||||||||||||||
Accretion of RNCI (pre-tax) | (10) | — | (151) | — | |||||||||||||||||||
Tax effect on accretion of RNCI | — | — | — | — | |||||||||||||||||||
Less: Accretion of RNCI (net of tax) | (10) | — | (151) | — | |||||||||||||||||||
Less: GE Industrial U.S. tax reform enactment adjustment | — | — | (51) | (101) | |||||||||||||||||||
Adjusted GE Industrial earnings (loss) (Non-GAAP) | $ | 742 | $ | 1,708 | (57) | % | $ | 833 | $ | 5,191 | (84) | % | |||||||||||
GE Capital earnings (loss) from continuing operations attributable to GE common shareholders (GAAP) | $ | (151) | $ | 69 | U | $ | (1,710) | $ | (530) | U | |||||||||||||
Insurance premium deficiency test charge (pre-tax) | — | — | — | (972) | |||||||||||||||||||
Tax effect on insurance premium deficiency test charge | — | — | — | 204 | |||||||||||||||||||
Less: Insurance premium deficiency test charge (net of tax) | — | — | — | (768) | |||||||||||||||||||
Goodwill impairments (pre-tax) | — | — | (839) | — | |||||||||||||||||||
Tax effect on goodwill impairments | — | — | 3 | — | |||||||||||||||||||
Less: goodwill impairments (net of tax) | — | — | (836) | — | |||||||||||||||||||
Less: SEC Settlement (pre-tax and net of tax) | (100) | — | (100) | — | |||||||||||||||||||
Debt extinguishment costs (pre-tax) | (95) | — | (238) | — | |||||||||||||||||||
Tax effect on debt extinguishment costs | 20 | — | 44 | — | |||||||||||||||||||
Less: debt extinguishment costs (net of tax) | (75) | — | (194) | — | |||||||||||||||||||
Less: GE Capital U.S. tax reform enactment adjustment | — | — | 2 | 99 | |||||||||||||||||||
Less: GE Capital tax benefit related to BioPharma sale | 47 | — | 143 | — | |||||||||||||||||||
Adjusted GE Capital earnings (loss) (Non-GAAP) | $ | (24) | $ | 69 | U | $ | (724) | $ | 139 | U | |||||||||||||
Adjusted GE Industrial earnings (loss) (Non-GAAP) | $ | 742 | $ | 1,708 | (57) | % | $ | 833 | $ | 5,191 | (84) | % | |||||||||||
Add: Adjusted GE Capital earnings (loss) (Non-GAAP) | (24) | 69 | U | (724) | 139 | U | |||||||||||||||||
Adjusted earnings (loss) (Non-GAAP) | $ | 718 | $ | 1,777 | (60) | % | $ | 109 | $ | 5,330 | (98) | % |
ADJUSTED EARNINGS (LOSS) PER SHARE (EPS) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(NON-GAAP) | 2020 | 2019 | V% | 2020 | 2019 | V% | |||||||||||||||||
Consolidated EPS from continuing operations attributable to GE common shareholders (GAAP) | $ | 0.27 | $ | 0.07 | F | $ | 0.61 | $ | (0.01) | F | |||||||||||||
Add: accretion of RNCI | — | — | (0.02) | — | |||||||||||||||||||
Less: GE Capital EPS from continuing operations attributable to GE common shareholders (GAAP) | (0.02) | 0.01 | U | (0.20) | (0.06) | U | |||||||||||||||||
GE Industrial EPS (Non-GAAP) | $ | 0.28 | $ | 0.07 | F | $ | 0.79 | $ | 0.06 | F | |||||||||||||
Non-operating benefits costs (pre-tax) (GAAP) | (0.07) | (0.13) | (0.28) | (0.32) | |||||||||||||||||||
Tax effect on non-operating benefit costs | 0.01 | 0.03 | 0.06 | 0.07 | |||||||||||||||||||
Less: non-operating benefit costs (net of tax) | (0.05) | (0.10) | (0.22) | (0.26) | |||||||||||||||||||
Gains (losses) and impairments for disposed or held for sale businesses (pre-tax) | (0.02) | (0.02) | 1.42 | — | |||||||||||||||||||
Tax effect on gains (losses) and impairments for disposed or held for sale businesses | 0.02 | — | (0.12) | — | |||||||||||||||||||
Less: gains (losses) and impairments for disposed or held for sale businesses (net of tax) | — | (0.01) | 1.30 | — | |||||||||||||||||||
Restructuring & other (pre-tax) | (0.02) | (0.04) | (0.08) | (0.10) | |||||||||||||||||||
Tax effect on restructuring & other | — | 0.01 | 0.02 | 0.02 | |||||||||||||||||||
Less: restructuring & other (net of tax) | (0.01) | (0.03) | (0.06) | (0.08) | |||||||||||||||||||
Less: SEC Settlement (pre-tax and net of tax) | — | — | (0.01) | — | |||||||||||||||||||
Steam asset impairments (pre-tax) | — | — | (0.04) | — | |||||||||||||||||||
Tax effect on Steam asset impairments | — | — | — | — | |||||||||||||||||||
Less: Steam asset impairments (net of tax) | — | — | (0.04) | — | |||||||||||||||||||
Goodwill impairments (pre-tax) | — | — | (0.08) | (0.17) | |||||||||||||||||||
Tax effect on goodwill impairments | — | — | — | (0.01) | |||||||||||||||||||
Less: goodwill impairments (net of tax) | — | — | (0.09) | (0.18) | |||||||||||||||||||
Unrealized gains (losses) (pre-tax) | 0.32 | 0.10 | (0.22) | 0.09 | |||||||||||||||||||
Tax on unrealized gains (losses) | (0.06) | (0.02) | 0.05 | (0.01) | |||||||||||||||||||
Less: unrealized gains (losses) (net of tax) | 0.26 | 0.09 | (0.17) | 0.08 | |||||||||||||||||||
Debt extinguishment costs (pre-tax) | — | — | (0.01) | (0.03) | |||||||||||||||||||
Tax effect on debt extinguishment costs | — | — | — | 0.01 | |||||||||||||||||||
Less: debt extinguishment costs (net of tax) | — | — | (0.01) | (0.02) | |||||||||||||||||||
BioPharma deal expense (pre-tax) | — | — | — | — | |||||||||||||||||||
Tax on BioPharma deal expense | — | (0.07) | — | (0.07) | |||||||||||||||||||
Less: BioPharma deal expense (net of tax) | — | (0.07) | — | (0.07) | |||||||||||||||||||
Accretion of RNCI (pre-tax) | — | — | (0.02) | — | |||||||||||||||||||
Tax effect on accretion of RNCI | — | — | — | — | |||||||||||||||||||
Less: Accretion of RNCI (net of tax) | — | — | (0.02) | — | |||||||||||||||||||
Less: GE Industrial U.S. tax reform enactment adjustment | — | — | (0.01) | (0.01) | |||||||||||||||||||
Adjusted GE Industrial EPS (Non-GAAP) | $ | 0.08 | $ | 0.20 | (60) | % | $ | 0.10 | $ | 0.59 | (83) | % | |||||||||||
GE Capital EPS from continuing operations attributable to GE common shareholders (GAAP) | $ | (0.02) | $ | 0.01 | U | $ | (0.20) | $ | (0.06) | U | |||||||||||||
Insurance premium deficiency test charge (pre-tax) | — | — | — | (0.11) | |||||||||||||||||||
Tax effect on insurance premium deficiency test charge | — | — | — | 0.02 | |||||||||||||||||||
Less: Insurance premium deficiency test charge (net of tax) | — | — | — | (0.09) | |||||||||||||||||||
Goodwill impairments (pre-tax) | — | — | (0.10) | — | |||||||||||||||||||
Tax effect on goodwill impairments | — | — | — | — | |||||||||||||||||||
Less: goodwill impairments (net of tax) | — | — | (0.10) | — | |||||||||||||||||||
Less: SEC Settlement (pre-tax and net of tax) | (0.01) | — | (0.01) | — | |||||||||||||||||||
Debt extinguishment costs (pre-tax) | (0.01) | — | (0.03) | — | |||||||||||||||||||
Tax effect on debt extinguishment costs | — | — | — | — | |||||||||||||||||||
Less: Debt extinguishment costs (net of tax) | (0.01) | — | (0.02) | — | |||||||||||||||||||
Less: GE Capital U.S. tax reform enactment adjustment | — | — | — | 0.01 | |||||||||||||||||||
Less: GE Capital tax benefit related to BioPharma sale | 0.01 | — | 0.02 | — | |||||||||||||||||||
Adjusted GE Capital EPS (Non-GAAP) | $ | — | $ | 0.01 | (100) | % | $ | (0.08) | $ | 0.02 | U | ||||||||||||
Adjusted GE Industrial EPS (Non-GAAP) | $ | 0.08 | $ | 0.20 | (60) | % | $ | 0.10 | $ | 0.59 | (83) | % | |||||||||||
Add: Adjusted GE Capital EPS (Non-GAAP) | — | 0.01 | (100) | % | (0.08) | 0.02 | U | ||||||||||||||||
Adjusted EPS (Non-GAAP) | $ | 0.08 | $ | 0.20 | (60) | % | $ | 0.01 | $ | 0.61 | (98) | % | |||||||||||
Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total. | |||||||||||||||||||||||
The service cost for our pension and other benefit plans are included in adjusted earnings*, which represents the ongoing cost of providing pension benefits to our employees. The components of non-operating benefit costs are mainly driven by capital allocation decisions and market performance. We believe the retained costs in Adjusted earnings* and Adjusted EPS* provides management and investors a useful measure to evaluate the performance of the total company and increases period-to-period comparability. We also use Adjusted EPS* as a performance metric at the company level for our annual executive incentive plan for 2020. We believe presenting Adjusted Industrial earnings* and Adjusted Industrial EPS* separately for our financial services businesses also provides management and investors with useful information about the relative size of our industrial and financial services businesses in relation to the total company. |
GE INDUSTRIAL FREE CASH FLOW (FCF) (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
GE Industrial CFOA (GAAP) | $ | 1,921 | $ | 4,537 | $ | (1,254) | $ | 4,614 | |||||||||
Add: gross additions to property, plant and equipment | (276) | (620) | (1,579) | (2,216) | |||||||||||||
Add: gross additions to internal-use software | (23) | (71) | (143) | (274) | |||||||||||||
Less: GE Pension Plan funding | (2,500) | — | (2,500) | — | |||||||||||||
Less: taxes related to business sales | (245) | (38) | (1,082) | (198) | |||||||||||||
GE Industrial free cash flow (Non-GAAP) | $ | 4,367 | $ | 3,884 | $ | 606 | $ | 2,322 | |||||||||
We believe investors may find it useful to compare GE Industrial's free cash flows* performance without the effects of cash used for taxes related to business sales and contributions to the GE Pension Plan. We believe this measure will better allow management and investors to evaluate the capacity of our industrial operations to generate free cash flows. |
BIOPHARMA FREE CASH FLOW (FCF) (NON-GAAP) | |||||
(In millions) | Three months ended March 31, 2020 | ||||
BioPharma CFOA (GAAP) | $ | 315 | |||
Add: gross additions to property, plant and equipment | (17) | ||||
Add: gross additions to internal-use software | (2) | ||||
BioPharma free cash flow (Non-GAAP) | $ | 295 | |||
GE INDUSTRIAL NET DEBT (NON-GAAP) | December 31, 2020 | December 31, 2019 | ||||||
Total GE Industrial short- and long-term borrowings (GAAP) | $ | 42,736 | $ | 52,059 | ||||
Less: GE Capital short- and long-term debt assumed by GE Industrial | 22,390 | 31,368 | ||||||
Add: intercompany loans from GE Capital | 3,177 | 12,226 | ||||||
Total adjusted GE Industrial borrowings | $ | 23,523 | $ | 32,917 | ||||
Pension and principal retiree benefit plan liabilities (pre-tax)(a) | 25,492 | 27,773 | ||||||
Less: taxes at 21% | 5,353 | 5,832 | ||||||
Pension and principal retiree benefit plan liabilities (net of tax) | $ | 20,139 | $ | 21,941 | ||||
GE Industrial operating lease liabilities | 3,133 | 3,369 | ||||||
GE Industrial preferred stock | 5,918 | 5,738 | ||||||
Less: 50% of GE Industrial preferred stock | 2,959 | 2,869 | ||||||
50% of preferred stock | $ | 2,959 | $ | 2,869 | ||||
Deduction for total GE Industrial cash, cash equivalents and restricted cash | (23,209) | (17,613) | ||||||
Less: 25% of GE Industrial cash, cash equivalents and restricted cash | (5,802) | (4,403) | ||||||
Deduction for 75% of GE Industrial cash, cash equivalents and restricted cash | $ | (17,407) | $ | (13,210) | ||||
Total GE Industrial net debt (Non-GAAP) | $ | 32,347 | $ | 47,886 | ||||
(a) Represents the sum of the net deficit of principal pension, other pension, and principal retiree benefit plans. | ||||||||
In this document we use GE Industrial net debt*, which is calculated based on rating agency methodologies. We are including the calculation of GE Industrial net debt* to provide investors more clarity regarding how the credit rating agencies measure GE Industrial leverage. |
GE INDUSTRIAL LEVERAGE EBITDA (NON-GAAP) | December 31, 2020 | December 31, 2019 | ||||||
GE Industrial earnings (loss) from continuing operations before income taxes (GAAP) | $ | 7,291 | $ | 1,801 | ||||
Less: interest and other financial charges | (1,333) | (2,115) | ||||||
Less: depreciation, amortization of property, plant and equipment and amortization of intangible assets | (3,456) | (3,513) | ||||||
Less: non-operating benefit costs | (2,424) | (2,828) | ||||||
Less: goodwill impairments | (877) | (1,486) | ||||||
Less: other items | 10,196 | 739 | ||||||
Add: disposition related adjustments | 267 | 350 | ||||||
Total GE Industrial leverage EBITDA (Non-GAAP) | $ | 5,453 | $ | 11,354 | ||||
In this document we use GE Industrial leverage EBITDA*, which is calculated based on rating agency methodologies. We are including the calculation of GE Industrial leverage EBITDA* to provide investors more clarity regarding how the credit rating agencies measure GE Industrial leverage. |
2021 OPERATING FRAMEWORK: 2021 ADJUSTED EPS (NON-GAAP) | ||||||||||||||||||||
We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for Adjusted EPS* in 2021 without unreasonable effort due to the uncertainty of timing of any gains or losses related to acquisitions & dispositions, the timing and magnitude of the financial impact related to the mark-to-market of our remaining investment in Baker Hughes, and the timing and magnitude of restructuring expenses. Although we have attempted to estimate the amount of gains and restructuring charges for the purpose of explaining the probable significance of these components, this calculation involves a number of unknown variables, resulting in a GAAP range that we believe is too large and variable to be meaningful. |
2021 OPERATING FRAMEWORK: 2021 GE INDUSTRIAL FREE CASH FLOW (NON-GAAP) | |||||||||||||||||
We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for GE Industrial Free Cash flow* in 2021 without unreasonable effort due to the uncertainty of timing of deal taxes related to business sales. |