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Share Name | Share Symbol | Market | Type |
---|---|---|---|
GE Aerospace | NYSE:GE | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
1.15 | 0.71% | 162.41 | 163.365 | 160.3114 | 161.24 | 5,898,024 | 01:00:00 |
New York
|
|
14-0689340
|
||
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
||
|
|
|
|
|
5 Necco Street
|
Boston
|
MA
|
|
02210
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common stock, par value $0.06 per share
|
GE
|
New York Stock Exchange
|
0.375% Notes due 2022
|
GE 22A
|
New York Stock Exchange
|
1.250% Notes due 2023
|
GE 23E
|
New York Stock Exchange
|
0.875% Notes due 2025
|
GE 25
|
New York Stock Exchange
|
1.875% Notes due 2027
|
GE 27E
|
New York Stock Exchange
|
1.500% Notes due 2029
|
GE 29
|
New York Stock Exchange
|
7 1/2% Guaranteed Subordinated Notes due 2035
|
GE /35
|
New York Stock Exchange
|
2.125% Notes due 2037
|
GE 37
|
New York Stock Exchange
|
Large accelerated filer
|
☑
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
|
|
|
Page
|
|
|
ABOUT GENERAL ELECTRIC
|
|
|
MD&A
|
CONSOLIDATED RESULTS
|
|
MD&A
|
CONSOLIDATED RESULTS
|
|
GE INDUSTRIAL ORDERS
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||
(In billions)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
Equipment
|
$
|
7.1
|
|
$
|
11.3
|
|
|
$
|
16.3
|
|
$
|
21.3
|
|
Services
|
6.6
|
|
10.9
|
|
|
16.9
|
|
21.5
|
|
||||
Total orders(a)
|
$
|
13.8
|
|
$
|
22.2
|
|
|
$
|
33.3
|
|
$
|
42.8
|
|
Total organic orders
|
$
|
13.9
|
|
$
|
21.3
|
|
|
$
|
33.5
|
|
$
|
41.4
|
|
GE INDUSTRIAL BACKLOG (In billions)
|
June 30, 2020
|
|
December 31, 2019
|
|
June 30, 2019
|
|
|||
Equipment
|
$
|
73.3
|
|
$
|
79.0
|
|
$
|
79.4
|
|
Services
|
307.3
|
|
325.6
|
|
295.9
|
|
|||
Total backlog(a)
|
$
|
380.5
|
|
$
|
404.6
|
|
$
|
375.3
|
|
MD&A
|
CONSOLIDATED RESULTS
|
|
June 30, 2020 (In billions)
|
Equipment
|
|
Services
|
|
Total
|
|
|||
Backlog
|
$
|
73.3
|
|
$
|
307.3
|
|
$
|
380.5
|
|
Adjustments
|
(28.8
|
)
|
(124.1
|
)
|
(152.9
|
)
|
|||
Remaining performance obligation
|
$
|
44.4
|
|
$
|
183.2
|
|
$
|
227.6
|
|
REVENUES
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||
(In billions)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
Consolidated revenues
|
$
|
17.7
|
|
$
|
23.4
|
|
|
$
|
38.3
|
|
$
|
45.6
|
|
|
|
|
|
|
|
||||||||
Equipment
|
8.3
|
|
10.3
|
|
|
17.5
|
|
19.9
|
|
||||
Services
|
7.8
|
|
11.1
|
|
|
17.4
|
|
21.9
|
|
||||
GE Industrial revenues
|
$
|
16.1
|
|
$
|
21.4
|
|
|
$
|
34.9
|
|
$
|
41.7
|
|
|
|
|
|
|
|
||||||||
GE Capital revenues
|
$
|
1.8
|
|
$
|
2.3
|
|
|
$
|
3.8
|
|
$
|
4.5
|
|
EARNINGS (LOSS) AND EARNINGS (LOSS) PER SHARE
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||
(In billions; per-share in dollars and diluted)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
Continuing earnings
|
$
|
(2.2
|
)
|
$
|
(0.3
|
)
|
|
$
|
4.1
|
|
$
|
0.6
|
|
Continuing earnings per share
|
$
|
(0.27
|
)
|
$
|
(0.03
|
)
|
|
$
|
0.46
|
|
$
|
0.07
|
|
MD&A
|
CONSOLIDATED RESULTS
|
|
MD&A
|
SEGMENT OPERATIONS
|
|
SUMMARY OF REPORTABLE SEGMENTS
|
Three months ended June 30
|
|
Six months ended June 30
|
|
|||||||||||||||
(In millions)
|
2020
|
|
2019
|
|
V%
|
|
|
|
2020
|
|
2019
|
|
V%
|
|
|
||||
Power
|
$
|
4,156
|
|
$
|
4,681
|
|
(11
|
)
|
%
|
|
$
|
8,181
|
|
$
|
9,298
|
|
(12
|
)
|
%
|
Renewable Energy
|
3,505
|
|
3,627
|
|
(3
|
)
|
%
|
|
6,698
|
|
6,165
|
|
9
|
|
%
|
||||
Aviation
|
4,384
|
|
7,877
|
|
(44
|
)
|
%
|
|
11,276
|
|
15,831
|
|
(29
|
)
|
%
|
||||
Healthcare
|
3,893
|
|
4,934
|
|
(21
|
)
|
%
|
|
8,620
|
|
9,616
|
|
(10
|
)
|
%
|
||||
Capital
|
1,845
|
|
2,321
|
|
(21
|
)
|
%
|
|
3,768
|
|
4,548
|
|
(17
|
)
|
%
|
||||
Total segment revenues
|
17,783
|
|
23,439
|
|
(24
|
)
|
%
|
|
38,544
|
|
45,458
|
|
(15
|
)
|
%
|
||||
Corporate items and eliminations
|
(33
|
)
|
(25
|
)
|
(32
|
)
|
%
|
|
(271
|
)
|
158
|
|
U
|
|
|
||||
Consolidated revenues
|
$
|
17,750
|
|
$
|
23,414
|
|
(24
|
)
|
%
|
|
$
|
38,273
|
|
$
|
45,616
|
|
(16
|
)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Power
|
$
|
(40
|
)
|
$
|
117
|
|
U
|
|
|
|
$
|
(168
|
)
|
$
|
228
|
|
U
|
|
|
Renewable Energy
|
(195
|
)
|
(184
|
)
|
(6
|
)
|
%
|
|
(498
|
)
|
(371
|
)
|
(34
|
)
|
%
|
||||
Aviation
|
(680
|
)
|
1,385
|
|
U
|
|
|
|
325
|
|
3,046
|
|
(89
|
)
|
%
|
||||
Healthcare
|
550
|
|
958
|
|
(43
|
)
|
%
|
|
1,446
|
|
1,740
|
|
(17
|
)
|
%
|
||||
Capital
|
(1,476
|
)
|
(89
|
)
|
U
|
|
|
|
(1,506
|
)
|
46
|
|
U
|
|
|
||||
Total segment profit (loss)
|
(1,842
|
)
|
2,188
|
|
U
|
|
|
|
(401
|
)
|
4,688
|
|
U
|
|
|
||||
Corporate items and eliminations
|
1,459
|
|
(976
|
)
|
F
|
|
|
|
7,523
|
|
(1,205
|
)
|
F
|
|
|
||||
GE goodwill impairments
|
(877
|
)
|
(744
|
)
|
(18
|
)
|
%
|
|
(877
|
)
|
(744
|
)
|
(18
|
)
|
%
|
||||
GE interest and other financial charges
|
(396
|
)
|
(382
|
)
|
(4
|
)
|
%
|
|
(766
|
)
|
(902
|
)
|
15
|
|
%
|
||||
GE non-operating benefit costs
|
(596
|
)
|
(558
|
)
|
(7
|
)
|
%
|
|
(1,212
|
)
|
(1,122
|
)
|
(8
|
)
|
%
|
||||
GE benefit (provision) for income taxes
|
66
|
|
170
|
|
(61
|
)
|
%
|
|
(121
|
)
|
(97
|
)
|
(25
|
)
|
%
|
||||
Earnings (loss) from continuing operations attributable to GE common shareholders
|
(2,186
|
)
|
(302
|
)
|
U
|
|
|
|
4,146
|
|
618
|
|
F
|
|
|
||||
Earnings (loss) from discontinued operations, net of taxes
|
7
|
|
219
|
|
(97
|
)
|
%
|
|
(171
|
)
|
2,881
|
|
U
|
|
|
||||
Less net earnings attributable to noncontrolling interests, discontinued operations
|
—
|
|
(23
|
)
|
F
|
|
|
|
(2
|
)
|
11
|
|
U
|
|
|
||||
Earnings (loss) from discontinued operations, net of tax and noncontrolling interest
|
7
|
|
241
|
|
(97
|
)
|
%
|
|
(168
|
)
|
2,870
|
|
U
|
|
|
||||
Consolidated net earnings (loss) attributable to the GE common shareholders
|
$
|
(2,179
|
)
|
$
|
(61
|
)
|
U
|
|
|
|
$
|
3,977
|
|
$
|
3,488
|
|
14
|
|
%
|
MD&A
|
SEGMENT OPERATIONS
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||||||
|
Orders
|
|
Sales
|
|
Orders
|
|
Sales
|
||||||||||||
(In units)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
GE Gas Turbines
|
6
|
|
20
|
|
|
25
|
|
11
|
|
|
15
|
|
35
|
|
|
32
|
|
20
|
|
Heavy-Duty Gas Turbines(a)
|
2
|
|
16
|
|
|
15
|
|
4
|
|
|
8
|
|
27
|
|
|
20
|
|
11
|
|
HA-Turbines(b)
|
—
|
|
7
|
|
|
5
|
|
—
|
|
|
2
|
|
10
|
|
|
9
|
|
1
|
|
Aeroderivatives(a)
|
4
|
|
4
|
|
|
10
|
|
7
|
|
|
7
|
|
8
|
|
|
12
|
|
9
|
|
GE Gas Turbine Gigawatts(c)
|
0.4
|
|
4.6
|
|
|
|
|
|
2.6
|
|
6.7
|
|
|
|
|
||||
(a) Heavy-Duty Gas Turbines and Aeroderivatives are subsets of GE Gas Turbines.
(b) HA-Turbines are a subset of Heavy-Duty Gas Turbines.
(c) Gigawatts reported associated with financial orders in the periods presented.
|
(Dollars in billions)
|
June 30, 2020
|
|
December 31, 2019
|
|
June 30, 2019
|
|
|||
Equipment
|
$
|
17.1
|
|
$
|
17.7
|
|
$
|
19.6
|
|
Services
|
63.0
|
|
67.6
|
|
67.1
|
|
|||
Total backlog
|
$
|
80.2
|
|
$
|
85.3
|
|
$
|
86.7
|
|
|
Three months ended June 30
|
|
|
Six months ended June 30
|
|||||||||||||
|
2020
|
|
|
2019
|
|
|
|
2020
|
|
|
2019
|
|
|
||||
Equipment
|
$
|
0.3
|
|
|
$
|
2.1
|
|
|
|
$
|
1.8
|
|
|
$
|
3.1
|
|
|
Services
|
2.5
|
|
|
2.8
|
|
|
|
5.1
|
|
|
5.5
|
|
|
||||
Total orders
|
$
|
2.9
|
|
|
$
|
4.9
|
|
|
|
$
|
7.0
|
|
|
$
|
8.6
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gas Power
|
$
|
3.1
|
|
|
$
|
3.2
|
|
|
|
$
|
5.9
|
|
|
$
|
6.5
|
|
|
Power Portfolio
|
1.1
|
|
|
1.4
|
|
|
|
2.2
|
|
|
2.8
|
|
|
||||
Total segment revenues
|
$
|
4.2
|
|
|
$
|
4.7
|
|
|
|
$
|
8.2
|
|
|
$
|
9.3
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equipment
|
$
|
1.5
|
|
|
$
|
1.5
|
|
|
|
$
|
3.0
|
|
|
$
|
3.0
|
|
|
Services
|
2.7
|
|
|
3.2
|
|
|
|
5.2
|
|
|
6.3
|
|
|
||||
Total segment revenues
|
$
|
4.2
|
|
|
$
|
4.7
|
|
|
|
$
|
8.2
|
|
|
$
|
9.3
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Segment profit (loss)
|
$
|
—
|
|
|
$
|
0.1
|
|
|
|
$
|
(0.2
|
)
|
|
$
|
0.2
|
|
|
Segment profit margin
|
(1.0
|
)
|
%
|
2.5
|
|
%
|
|
(2.1
|
)
|
%
|
2.5
|
|
%
|
MD&A
|
SEGMENT OPERATIONS
|
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||||||
|
|
Orders
|
|
Sales
|
|
Orders
|
|
Sales
|
||||||||||||
(In units)
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
Onshore
|
Wind Turbines
|
645
|
|
984
|
|
|
830
|
|
804
|
|
|
1,383
|
|
1,954
|
|
|
1,561
|
|
1,157
|
|
|
Wind Turbine Megawatts
|
2,167
|
|
2,670
|
|
|
2,311
|
|
2,257
|
|
|
4,500
|
|
5,334
|
|
|
4,404
|
|
3,245
|
|
|
Repower
|
118
|
|
494
|
|
|
357
|
|
221
|
|
|
124
|
|
594
|
|
|
576
|
|
377
|
|
(Dollars in billions)
|
June 30, 2020
|
|
December 31, 2019
|
|
June 30, 2019
|
|
|||
Equipment
|
$
|
15.5
|
|
$
|
16.3
|
|
$
|
15.3
|
|
Services
|
10.4
|
|
11.2
|
|
10.4
|
|
|||
Total backlog
|
$
|
25.9
|
|
$
|
27.5
|
|
$
|
25.7
|
|
|
Three months ended June 30
|
|
|
Six months ended June 30
|
|
||||||||||||
|
2020
|
|
|
2019
|
|
|
|
2020
|
|
|
2019
|
|
|
||||
Equipment
|
$
|
2.5
|
|
|
$
|
2.9
|
|
|
|
$
|
5.1
|
|
|
$
|
5.9
|
|
|
Services
|
0.5
|
|
|
0.8
|
|
|
|
0.9
|
|
|
1.3
|
|
|
||||
Total orders
|
$
|
3.0
|
|
|
$
|
3.7
|
|
|
|
$
|
6.1
|
|
|
$
|
7.2
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Onshore Wind
|
$
|
2.5
|
|
|
$
|
2.4
|
|
|
|
$
|
4.6
|
|
|
$
|
3.9
|
|
|
Grid Solutions equipment and services
|
0.8
|
|
|
0.9
|
|
|
|
1.7
|
|
|
1.9
|
|
|
||||
Hydro, Offshore Wind and other
|
0.2
|
|
|
0.2
|
|
|
|
0.4
|
|
|
0.4
|
|
|
||||
Total segment revenues
|
$
|
3.5
|
|
|
$
|
3.6
|
|
|
|
$
|
6.7
|
|
|
$
|
6.2
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equipment
|
$
|
2.7
|
|
|
$
|
2.9
|
|
|
|
$
|
5.3
|
|
|
$
|
4.8
|
|
|
Services
|
0.8
|
|
|
0.8
|
|
|
|
1.4
|
|
|
1.3
|
|
|
||||
Total segment revenues
|
$
|
3.5
|
|
|
$
|
3.6
|
|
|
|
$
|
6.7
|
|
|
$
|
6.2
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Segment profit (loss)
|
$
|
(0.2
|
)
|
|
$
|
(0.2
|
)
|
|
|
$
|
(0.5
|
)
|
|
$
|
(0.4
|
)
|
|
Segment profit margin
|
(5.6
|
)
|
%
|
(5.1
|
)
|
%
|
|
(7.4
|
)
|
%
|
(6.0
|
)
|
%
|
MD&A
|
SEGMENT OPERATIONS
|
|
MD&A
|
SEGMENT OPERATIONS
|
|
(Dollars in billions)
|
June 30, 2020
|
|
December 31, 2019
|
|
June 30, 2019
|
|
|||
Equipment
|
$
|
36.7
|
|
$
|
39.1
|
|
$
|
38.2
|
|
Services
|
221.6
|
|
234.1
|
|
205.7
|
|
|||
Total backlog
|
$
|
258.3
|
|
$
|
273.2
|
|
$
|
243.9
|
|
|
Three months ended June 30
|
|
|
Six months ended June 30
|
|
||||||||||||
|
2020
|
|
|
2019
|
|
|
|
2020
|
|
|
2019
|
|
|
||||
Equipment
|
$
|
2.0
|
|
|
$
|
3.5
|
|
|
|
$
|
4.3
|
|
|
$
|
6.7
|
|
|
Services
|
1.7
|
|
|
5.1
|
|
|
|
6.9
|
|
|
10.6
|
|
|
||||
Total orders
|
$
|
3.7
|
|
|
$
|
8.6
|
|
|
|
$
|
11.2
|
|
|
$
|
17.3
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial Engines & Services
|
$
|
2.2
|
|
|
$
|
5.8
|
|
|
|
$
|
7.0
|
|
|
$
|
11.8
|
|
|
Military
|
1.2
|
|
|
1.0
|
|
|
|
2.1
|
|
|
2.0
|
|
|
||||
Systems & Other
|
1.0
|
|
|
1.1
|
|
|
|
2.1
|
|
|
2.0
|
|
|
||||
Total segment revenues
|
$
|
4.4
|
|
|
$
|
7.9
|
|
|
|
$
|
11.3
|
|
|
$
|
15.8
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equipment
|
$
|
2.0
|
|
|
$
|
3.0
|
|
|
|
$
|
4.5
|
|
|
$
|
6.1
|
|
|
Services
|
2.4
|
|
|
4.8
|
|
|
|
6.8
|
|
|
9.7
|
|
|
||||
Total segment revenues
|
$
|
4.4
|
|
|
$
|
7.9
|
|
|
|
$
|
11.3
|
|
|
$
|
15.8
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Segment profit
|
$
|
(0.7
|
)
|
|
$
|
1.4
|
|
|
|
$
|
0.3
|
|
|
$
|
3.0
|
|
|
Segment profit margin
|
(15.5
|
)
|
%
|
17.6
|
|
%
|
|
2.9
|
|
%
|
19.2
|
|
%
|
MD&A
|
SEGMENT OPERATIONS
|
|
MD&A
|
SEGMENT OPERATIONS
|
|
(Dollars in billions)
|
June 30, 2020
|
|
December 31, 2019
|
|
June 30, 2019
|
|
|||
Equipment
|
$
|
6.1
|
|
$
|
7.0
|
|
$
|
6.7
|
|
Services
|
11.1
|
|
11.5
|
|
11.5
|
|
|||
Total backlog(a)
|
$
|
17.2
|
|
$
|
18.5
|
|
$
|
18.2
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||||
|
2020
|
|
|
2019
|
|
|
|
2020
|
|
|
2019
|
|
|
||||
Equipment
|
$
|
2.4
|
|
|
$
|
3.2
|
|
|
|
$
|
5.8
|
|
|
$
|
6.1
|
|
|
Services
|
1.8
|
|
|
2.0
|
|
|
|
3.8
|
|
|
4.0
|
|
|
||||
Total orders(a)
|
$
|
4.2
|
|
|
$
|
5.2
|
|
|
|
$
|
9.5
|
|
|
$
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Healthcare Systems
|
$
|
3.5
|
|
|
$
|
3.6
|
|
|
|
$
|
7.0
|
|
|
$
|
7.0
|
|
|
Pharmaceutical Diagnostics
|
0.4
|
|
|
0.5
|
|
|
|
0.8
|
|
|
1.0
|
|
|
||||
BioPharma
|
—
|
|
|
0.8
|
|
|
|
0.8
|
|
|
1.6
|
|
|
||||
Total segment revenues
|
$
|
3.9
|
|
|
$
|
4.9
|
|
|
|
$
|
8.6
|
|
|
$
|
9.6
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equipment
|
$
|
2.0
|
|
|
$
|
2.8
|
|
|
|
$
|
4.7
|
|
|
$
|
5.5
|
|
|
Services
|
1.8
|
|
|
2.1
|
|
|
|
3.9
|
|
|
4.1
|
|
|
||||
Total segment revenues
|
$
|
3.9
|
|
|
$
|
4.9
|
|
|
|
$
|
8.6
|
|
|
$
|
9.6
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Segment profit
|
$
|
0.5
|
|
|
$
|
1.0
|
|
|
|
$
|
1.4
|
|
|
$
|
1.7
|
|
|
Segment profit margin
|
14.1
|
|
%
|
19.4
|
|
%
|
|
16.8
|
|
%
|
18.1
|
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
(a) Backlog as of June 30, 2020 excluded the BioPharma business due to its disposition in the first quarter of 2020. Backlog as of December 31, 2019 and June 30, 2019 included $1.2 billion and $1.1 billion, respectively, related to BioPharma. Orders included $0.8 billion related to BioPharma for the three months ended June 30, 2019, and included $1.1 billion and $1.8 billion related to BioPharma for the six months ended June 30, 2020 and 2019, respectively.
|
MD&A
|
SEGMENT OPERATIONS
|
|
MD&A
|
SEGMENT OPERATIONS
|
|
(Dollars in billions)
|
June 30, 2020
|
|
December 31, 2019
|
|
||
GECAS
|
$
|
36.0
|
|
$
|
38.0
|
|
Energy Financial Services (EFS)
|
1.8
|
|
1.8
|
|
||
Working Capital Solutions (WCS)(a)
|
6.8
|
|
9.0
|
|
||
Insurance
|
49.6
|
|
46.3
|
|
||
Other continuing operations(a)
|
20.2
|
|
22.5
|
|
||
Total segment assets
|
$
|
114.5
|
|
$
|
117.5
|
|
|
|
|
||||
GE Capital debt to equity ratio
|
4.2:1
|
|
3.9:1
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||
(In billions)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
GECAS
|
$
|
1.0
|
|
$
|
1.2
|
|
|
$
|
2.1
|
|
$
|
2.5
|
|
EFS
|
—
|
|
0.1
|
|
|
0.1
|
|
0.1
|
|
||||
WCS
|
0.1
|
|
0.2
|
|
|
0.2
|
|
0.5
|
|
||||
Insurance
|
0.8
|
|
0.7
|
|
|
1.4
|
|
1.4
|
|
||||
Other continuing operations
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Total segment revenues
|
$
|
1.8
|
|
$
|
2.3
|
|
|
$
|
3.8
|
|
$
|
4.5
|
|
|
|
|
|
|
|
||||||||
GECAS
|
$
|
(1.0
|
)
|
$
|
0.3
|
|
|
$
|
(0.9
|
)
|
$
|
0.6
|
|
EFS
|
(0.1
|
)
|
0.1
|
|
|
—
|
|
0.1
|
|
||||
WCS
|
—
|
|
0.1
|
|
|
—
|
|
0.1
|
|
||||
Insurance
|
0.1
|
|
—
|
|
|
—
|
|
—
|
|
||||
Other continuing operations(a)
|
(0.5
|
)
|
(0.5
|
)
|
|
(0.7
|
)
|
(0.8
|
)
|
||||
Total segment profit
|
$
|
(1.5
|
)
|
$
|
(0.1
|
)
|
|
$
|
(1.5
|
)
|
$
|
—
|
|
MD&A
|
CORPORATE ITEMS AND ELIMINATIONS
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||
(In millions)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
Revenues
|
|
|
|
|
|
||||||||
Corporate revenues
|
$
|
410
|
|
$
|
408
|
|
|
$
|
788
|
|
$
|
1,000
|
|
Eliminations and other
|
(444
|
)
|
(433
|
)
|
|
(1,058
|
)
|
(841
|
)
|
||||
Total Corporate Items and Eliminations
|
$
|
(33
|
)
|
$
|
(25
|
)
|
|
$
|
(271
|
)
|
$
|
158
|
|
|
|
|
|
|
|
||||||||
Operating profit (cost)
|
|
|
|
|
|
||||||||
Gains (losses) on disposals and held for sale businesses
|
$
|
74
|
|
$
|
(116
|
)
|
|
$
|
12,513
|
|
$
|
250
|
|
Restructuring and other charges
|
(433
|
)
|
(345
|
)
|
|
(641
|
)
|
(602
|
)
|
||||
Unrealized gains (losses)
|
1,825
|
|
(51
|
)
|
|
(3,968
|
)
|
(38
|
)
|
||||
Goodwill impairments(a) (Note 8)
|
(728
|
)
|
(744
|
)
|
|
(728
|
)
|
(744
|
)
|
||||
Adjusted total corporate operating costs (Non-GAAP)
|
(156
|
)
|
(465
|
)
|
|
(530
|
)
|
(813
|
)
|
||||
Total Corporate Items and Eliminations (GAAP)
|
$
|
582
|
|
$
|
(1,720
|
)
|
|
$
|
6,646
|
|
$
|
(1,948
|
)
|
Less: gains (losses) and restructuring & other
|
738
|
|
(1,255
|
)
|
|
7,176
|
|
(1,135
|
)
|
||||
Adjusted total corporate operating costs (Non-GAAP)
|
$
|
(156
|
)
|
$
|
(465
|
)
|
|
$
|
(530
|
)
|
$
|
(813
|
)
|
|
|
|
|
|
|
||||||||
Functions & operations
|
$
|
(163
|
)
|
$
|
(331
|
)
|
|
$
|
(429
|
)
|
$
|
(688
|
)
|
Eliminations
|
(32
|
)
|
(34
|
)
|
|
(130
|
)
|
(28
|
)
|
||||
Environmental, health and safety (EHS) and other items
|
38
|
|
(100
|
)
|
|
29
|
|
(97
|
)
|
||||
Adjusted total corporate operating costs (Non-GAAP)
|
$
|
(156
|
)
|
$
|
(465
|
)
|
|
$
|
(530
|
)
|
$
|
(813
|
)
|
MD&A
|
CORPORATE ITEMS AND ELIMINATIONS
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||
(In billions)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
Workforce reductions
|
$
|
0.3
|
|
$
|
0.2
|
|
|
$
|
0.5
|
|
$
|
0.4
|
|
Plant closures & associated costs and other asset write-downs
|
0.1
|
|
0.1
|
|
|
0.1
|
|
0.1
|
|
||||
Acquisition/disposition net charges
|
—
|
|
0.1
|
|
|
—
|
|
0.1
|
|
||||
Total restructuring and other charges
|
$
|
0.4
|
|
$
|
0.3
|
|
|
$
|
0.6
|
|
$
|
0.6
|
|
|
|
|
|
|
|
||||||||
Cost of product/services
|
$
|
0.1
|
|
$
|
0.1
|
|
|
$
|
0.3
|
|
$
|
0.2
|
|
Selling, general and administrative expenses
|
0.3
|
|
0.3
|
|
|
0.4
|
|
0.4
|
|
||||
Other income
|
—
|
|
—
|
|
|
—
|
|
$
|
—
|
|
|||
Total restructuring and other charges
|
$
|
0.4
|
|
$
|
0.3
|
|
|
$
|
0.6
|
|
$
|
0.6
|
|
|
|
|
|
|
|
||||||||
Power
|
$
|
0.1
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
$
|
0.1
|
|
Renewable Energy
|
0.1
|
|
—
|
|
|
0.1
|
|
0.1
|
|
||||
Aviation
|
0.2
|
|
—
|
|
|
0.2
|
|
—
|
|
||||
Healthcare
|
—
|
|
—
|
|
|
0.1
|
|
0.1
|
|
||||
Corporate
|
0.1
|
|
0.2
|
|
|
0.1
|
|
0.3
|
|
||||
Total restructuring and other charges
|
$
|
0.4
|
|
$
|
0.3
|
|
|
$
|
0.6
|
|
$
|
0.6
|
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||||||||||||
|
Costs
|
Gains (Losses)
|
|
Costs
|
Gains (Losses)
|
||||||||||||||||||||
(In billions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
||||||||
Power
|
$
|
0.1
|
|
$
|
0.1
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
0.1
|
|
$
|
0.1
|
|
$
|
—
|
|
$
|
—
|
|
Renewable Energy
|
0.1
|
|
0.8
|
|
—
|
|
—
|
|
|
0.1
|
|
0.8
|
|
—
|
|
—
|
|
||||||||
Aviation
|
0.9
|
|
—
|
|
—
|
|
—
|
|
|
1.0
|
|
—
|
|
—
|
|
—
|
|
||||||||
Healthcare
|
—
|
|
—
|
|
—
|
|
—
|
|
|
0.1
|
|
0.1
|
|
12.3
|
|
—
|
|
||||||||
Total segments
|
$
|
1.0
|
|
$
|
0.9
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
1.2
|
|
$
|
1.0
|
|
$
|
12.4
|
|
$
|
—
|
|
Corporate Items & Eliminations
|
0.1
|
|
0.2
|
|
1.9
|
|
0.1
|
|
|
0.1
|
|
0.3
|
|
(3.8
|
)
|
0.2
|
|
||||||||
Total Industrial
|
$
|
1.1
|
|
$
|
1.1
|
|
$
|
1.9
|
|
$
|
0.2
|
|
|
$
|
1.3
|
|
$
|
1.3
|
|
$
|
8.5
|
|
$
|
0.2
|
|
MD&A
|
OTHER CONSOLIDATED INFORMATION
|
INTEREST AND OTHER FINANCIAL CHARGES
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||
(In billions)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
GE
|
$
|
0.4
|
|
$
|
0.4
|
|
|
$
|
0.8
|
|
$
|
0.9
|
|
GE Capital
|
0.7
|
|
0.6
|
|
|
1.2
|
|
1.3
|
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
(In billions)
|
June 30, 2020
|
|
|
|
June 30, 2020
|
|
||
GE
|
$
|
25.4
|
|
|
U.S.
|
$
|
23.9
|
|
GE Capital
|
16.0
|
|
|
Non-U.S.
|
17.6
|
|
||
Consolidated
|
$
|
41.4
|
|
|
Consolidated
|
$
|
41.4
|
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
GE (In billions)
|
June 30, 2020
|
|
December 31, 2019
|
|
|
GE Capital (In billions)
|
June 30, 2020
|
|
December 31, 2019
|
|
||||
Commercial paper
|
$
|
0.5
|
|
$
|
3.0
|
|
|
Senior and subordinated notes
|
$
|
35.2
|
|
$
|
36.5
|
|
GE senior notes
|
18.4
|
|
15.5
|
|
|
Senior and subordinated notes assumed by GE
|
25.4
|
|
31.4
|
|
||||
Intercompany loans from
GE Capital
|
4.7
|
|
12.2
|
|
|
Intercompany loans to GE
|
(4.7
|
)
|
(12.2
|
)
|
||||
Other GE borrowings
|
1.5
|
|
2.2
|
|
|
Other GE Capital borrowings
|
1.8
|
|
3.4
|
|
||||
Total GE
|
|
|
|
Total GE Capital
|
|
|
||||||||
adjusted borrowings(a)
|
$
|
25.1
|
|
$
|
32.9
|
|
|
adjusted borrowings(a)
|
$
|
57.7
|
|
$
|
59.0
|
|
June 30, 2020 (In billions)
|
GE
|
|
GE Capital
|
|
Consolidated
|
|
|||
Total short- and long-term borrowings
|
$
|
45.8
|
|
$
|
37.0
|
|
$
|
81.9
|
|
|
|
|
|
||||||
Debt assumed by GE from GE Capital(a)
|
(25.4
|
)
|
25.4
|
|
—
|
|
|||
Intercompany loans with right of offset(a)
|
4.7
|
|
(4.7
|
)
|
—
|
|
|||
Total intercompany payable (receivable) between GE and GE Capital
|
(20.7
|
)
|
20.7
|
|
—
|
|
|||
|
|
|
|
||||||
Total borrowings adjusted for assumed debt and intercompany loans
|
$
|
25.1
|
|
$
|
57.7
|
|
$
|
81.9
|
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
GE COMMITTED AND AVAILABLE REVOLVING CREDIT FACILITIES (In billions)
|
June 30, 2020
|
|
December 31, 2019
|
|
||
Unused back-up revolving syndicated credit facility
|
$
|
15.0
|
|
$
|
20.0
|
|
Unused revolving syndicated credit facility
|
—
|
|
14.8
|
|
||
Bilateral revolving credit facilities
|
5.2
|
|
7.2
|
|
||
Total committed revolving credit facilities
|
$
|
20.2
|
|
$
|
42.0
|
|
Less offset provisions
|
—
|
|
6.7
|
|
||
Total net available revolving credit facilities
|
$
|
20.2
|
|
$
|
35.3
|
|
(In billions)
|
GE Commercial Paper
|
|
Bilateral Revolving Credit Facilities
|
|
Total
|
|
||||
2020
|
Average borrowings during the second quarter
|
$
|
1.7
|
|
$
|
—
|
|
$
|
1.7
|
|
|
Maximum borrowings outstanding during the second quarter
|
2.2
|
|
—
|
|
2.2
|
|
|||
|
Ending balance at June 30
|
0.5
|
|
—
|
|
0.5
|
|
|||
|
|
|
|
|
||||||
2019
|
Average borrowings during the second quarter
|
$
|
3.0
|
|
$
|
1.3
|
|
$
|
4.3
|
|
|
Maximum borrowings outstanding during the second quarter
|
3.1
|
|
1.8
|
|
4.8
|
|
|||
|
Ending balance at June 30
|
3.0
|
|
—
|
|
3.0
|
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
(In billions)
|
Triggers Below
|
At June 30, 2020
|
|
|
Derivatives
|
|
|
||
Terminations
|
BBB/Baa2
|
$
|
(0.3
|
)
|
Cash margin posting
|
BBB/Baa2
|
(0.9
|
)
|
|
Receivables Sales Programs
|
|
|
||
Loss of cash commingling
|
A-2/P-2
|
$
|
(0.2
|
)
|
Alternative funding sources
|
A-2/P-2
|
(0.5
|
)
|
|
Surety bond cash collateral posting
|
BBB-/Baa3
|
$
|
(0.8
|
)
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
MD&A
|
CAPITAL RESOURCES AND LIQUIDITY
|
MD&A
|
CRITICAL ACCOUNTING ESTIMATES
|
•
|
Discount rate - A 25 basis point decrease in the discount rate would increase pension cost in the following year by about $0.2 billion and would increase the pension benefit obligation by about $2.3 billion.
|
•
|
Expected return on assets - A 50 basis point decrease in the expected return on assets would increase pension cost in the following year by about $0.3 billion.
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
GE INDUSTRIAL ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP)
|
|||||||||||||||||||||||||||||
Three months ended June 30
|
|
Revenues
|
|
Segment profit (loss)
|
|
Profit margin
|
|||||||||||||||||||||||
(Dollars in millions)
|
|
2020
|
|
|
2019
|
|
|
V%
|
|
|
2020
|
|
|
2019
|
|
|
V%
|
|
|
2020
|
|
|
2019
|
|
V pts
|
||||
Power (GAAP)
|
|
$
|
4,156
|
|
|
$
|
4,681
|
|
|
(11
|
)%
|
|
$
|
(40
|
)
|
|
$
|
117
|
|
|
U
|
|
|
(1.0
|
)%
|
|
2.5
|
%
|
(3.5)pts
|
Less: acquisitions
|
|
4
|
|
|
19
|
|
|
|
|
|
(5
|
)
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
||||
Less: business dispositions
|
|
—
|
|
|
22
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: foreign currency effect
|
|
(65
|
)
|
|
—
|
|
|
|
|
|
20
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||
Power organic (Non-GAAP)
|
|
$
|
4,218
|
|
|
$
|
4,640
|
|
|
(9
|
)%
|
|
$
|
(54
|
)
|
|
$
|
120
|
|
|
U
|
|
|
(1.3
|
)%
|
|
2.6
|
%
|
(3.9)pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Renewable Energy (GAAP)
|
|
$
|
3,505
|
|
|
$
|
3,627
|
|
|
(3
|
)%
|
|
$
|
(195
|
)
|
|
$
|
(184
|
)
|
|
(6
|
)%
|
|
(5.6
|
)%
|
|
(5.1
|
)%
|
(0.5)pts
|
Less: acquisitions
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: business dispositions
|
|
8
|
|
|
23
|
|
|
|
|
|
—
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
||||
Less: foreign currency effect
|
|
(133
|
)
|
|
—
|
|
|
|
|
|
15
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||
Renewable Energy organic (Non-GAAP)
|
|
$
|
3,630
|
|
|
$
|
3,603
|
|
|
1
|
%
|
|
$
|
(210
|
)
|
|
$
|
(183
|
)
|
|
(15
|
)%
|
|
(5.8
|
)%
|
|
(5.1
|
)%
|
(0.7)pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Aviation (GAAP)
|
|
$
|
4,384
|
|
|
$
|
7,877
|
|
|
(44
|
)%
|
|
$
|
(680
|
)
|
|
$
|
1,385
|
|
|
U
|
|
|
(15.5
|
)%
|
|
17.6
|
%
|
(33.1)pts
|
Less: acquisitions
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: business dispositions
|
|
—
|
|
|
46
|
|
|
|
|
|
—
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
||||
Less: foreign currency effect
|
|
(5
|
)
|
|
—
|
|
|
|
|
|
3
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||
Aviation organic (Non-GAAP)
|
|
$
|
4,389
|
|
|
$
|
7,831
|
|
|
(44
|
)%
|
|
$
|
(683
|
)
|
|
$
|
1,390
|
|
|
U
|
|
|
(15.6
|
)%
|
|
17.7
|
%
|
(33.3)pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Healthcare (GAAP)
|
|
$
|
3,893
|
|
|
$
|
4,934
|
|
|
(21
|
)%
|
|
$
|
550
|
|
|
$
|
958
|
|
|
(43
|
)%
|
|
14.1
|
%
|
|
19.4
|
%
|
(5.3)pts
|
Less: acquisitions
|
|
7
|
|
|
—
|
|
|
|
|
|
(11
|
)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: business dispositions
|
|
—
|
|
|
828
|
|
|
|
|
|
—
|
|
|
361
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: foreign currency effect
|
|
(72
|
)
|
|
—
|
|
|
|
|
|
(15
|
)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||
Healthcare organic (Non-GAAP)
|
|
$
|
3,958
|
|
|
$
|
4,106
|
|
|
(4
|
)%
|
|
$
|
577
|
|
|
$
|
598
|
|
|
(4
|
)%
|
|
14.6
|
%
|
|
14.6
|
%
|
0pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: BioPharma organic (Non-GAAP)
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||
Healthcare excluding BioPharma organic (Non-GAAP)
|
|
$
|
3,958
|
|
|
$
|
4,106
|
|
|
(4
|
)%
|
|
$
|
577
|
|
|
$
|
598
|
|
|
(4
|
)%
|
|
14.6
|
%
|
|
14.6
|
%
|
0pts
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
Six months ended June 30
|
|
Revenues
|
|
Segment profit (loss)
|
|
Profit margin
|
|||||||||||||||||||||||
(Dollars in millions)
|
|
2020
|
|
|
2019
|
|
|
V%
|
|
|
2020
|
|
|
2019
|
|
|
V%
|
|
|
2020
|
|
|
2019
|
|
V pts
|
||||
Power (GAAP)
|
|
$
|
8,181
|
|
|
$
|
9,298
|
|
|
(12
|
)%
|
|
$
|
(168
|
)
|
|
$
|
228
|
|
|
U
|
|
|
(2.1
|
)%
|
|
2.5
|
%
|
(4.6)pts
|
Less: acquisitions
|
|
19
|
|
|
19
|
|
|
|
|
|
(3
|
)
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
||||
Less: business dispositions
|
|
15
|
|
|
56
|
|
|
|
|
|
2
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: foreign currency effect
|
|
(111
|
)
|
|
—
|
|
|
|
|
|
22
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||
Power organic (Non-GAAP)
|
|
$
|
8,257
|
|
|
$
|
9,223
|
|
|
(10
|
)%
|
|
$
|
(189
|
)
|
|
$
|
230
|
|
|
U
|
|
|
(2.3
|
)%
|
|
2.5
|
%
|
(4.8)pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Renewable Energy (GAAP)
|
|
$
|
6,698
|
|
|
$
|
6,165
|
|
|
9
|
%
|
|
$
|
(498
|
)
|
|
$
|
(371
|
)
|
|
(34
|
)%
|
|
(7.4
|
)%
|
|
(6.0
|
)%
|
(1.4)pts
|
Less: acquisitions
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: business dispositions
|
|
8
|
|
|
23
|
|
|
|
|
|
—
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
||||
Less: foreign currency effect
|
|
(197
|
)
|
|
—
|
|
|
|
|
|
23
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||
Renewable Energy organic (Non-GAAP)
|
|
$
|
6,888
|
|
|
$
|
6,142
|
|
|
12
|
%
|
|
$
|
(520
|
)
|
|
$
|
(371
|
)
|
|
(40
|
)%
|
|
(7.5
|
)%
|
|
(6.0
|
)%
|
(1.5)pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Aviation (GAAP)
|
|
$
|
11,276
|
|
|
$
|
15,831
|
|
|
(29
|
)%
|
|
$
|
325
|
|
|
$
|
3,046
|
|
|
(89
|
)%
|
|
2.9
|
%
|
|
19.2
|
%
|
(16.3)pts
|
Less: acquisitions
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: business dispositions
|
|
13
|
|
|
226
|
|
|
|
|
|
(2
|
)
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: foreign currency effect
|
|
(7
|
)
|
|
—
|
|
|
|
|
|
7
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||
Aviation organic (Non-GAAP)
|
|
$
|
11,270
|
|
|
$
|
15,604
|
|
|
(28
|
)%
|
|
$
|
321
|
|
|
$
|
3,031
|
|
|
(89
|
)%
|
|
2.8
|
%
|
|
19.4
|
%
|
(16.6)pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Healthcare (GAAP)
|
|
$
|
8,620
|
|
|
$
|
9,616
|
|
|
(10
|
)%
|
|
$
|
1,446
|
|
|
$
|
1,740
|
|
|
(17
|
)%
|
|
16.8
|
%
|
|
18.1
|
%
|
(1.3)pts
|
Less: acquisitions
|
|
21
|
|
|
21
|
|
|
|
|
|
(11
|
)
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
||||
Less: business dispositions
|
|
—
|
|
|
831
|
|
|
|
|
|
—
|
|
|
329
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: foreign currency effect
|
|
(125
|
)
|
|
—
|
|
|
|
|
|
(20
|
)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||
Healthcare organic (Non-GAAP)
|
|
$
|
8,723
|
|
|
$
|
8,765
|
|
|
—
|
%
|
|
$
|
1,477
|
|
|
$
|
1,414
|
|
|
4
|
%
|
|
16.9
|
%
|
|
16.1
|
%
|
0.8pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: BioPharma organic (Non-GAAP)
|
|
$
|
839
|
|
|
762
|
|
|
|
|
|
$
|
380
|
|
|
$
|
311
|
|
|
|
|
|
|
|
|
|
|
|
|
Healthcare excluding BioPharma organic (Non-GAAP)
|
|
$
|
7,884
|
|
|
$
|
8,003
|
|
|
(1
|
)%
|
|
$
|
1,098
|
|
|
$
|
1,104
|
|
|
(1
|
)%
|
|
13.9
|
%
|
|
13.8
|
%
|
0.1pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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.
|
BIOPHARMA ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN (NON-GAAP)
|
||||||||||||||||||||||||||||||
Three months ended June 30
|
|
Revenues
|
|
Segment profit (loss)
|
|
Profit margin
|
||||||||||||||||||||||||
(Dollars in millions)
|
|
2020
|
|
|
2019
|
|
|
V%
|
|
|
2020
|
|
|
2019
|
|
|
V%
|
|
|
2020
|
|
|
2019
|
|
V pts
|
|
||||
BioPharma (GAAP)
|
|
$
|
—
|
|
|
$
|
828
|
|
|
U
|
|
|
$
|
—
|
|
|
$
|
371
|
|
|
U
|
|
|
—
|
%
|
|
44.8
|
%
|
(44.8
|
)pts
|
Less: acquisitions
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: business dispositions
|
|
—
|
|
|
828
|
|
|
|
|
|
—
|
|
|
371
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: foreign currency effect
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
BioPharma organic (Non-GAAP)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
0.0pts
|
|
Six months ended June 30
|
|
2020
|
|
|
2019
|
|
|
V%
|
|
|
2020
|
|
|
2019
|
|
|
V%
|
|
|
2020
|
|
|
2019
|
|
V pts
|
|
||||
BioPharma (GAAP)
|
|
$
|
830
|
|
|
$
|
1,593
|
|
|
(48
|
)%
|
|
$
|
382
|
|
|
$
|
683
|
|
|
(44
|
)%
|
|
46.0
|
%
|
|
42.9
|
%
|
3.1
|
pts
|
Less: acquisitions
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: business dispositions
|
|
—
|
|
|
831
|
|
|
|
|
|
—
|
|
|
372
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: foreign currency effect
|
|
(9
|
)
|
|
—
|
|
|
|
|
|
2
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
BioPharma organic (Non-GAAP)
|
|
$
|
839
|
|
|
$
|
762
|
|
|
10
|
%
|
|
$
|
380
|
|
|
$
|
311
|
|
|
22
|
%
|
|
45.3
|
%
|
|
40.8
|
%
|
4.5
|
pts
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
GE INDUSTRIAL ORGANIC REVENUES (NON-GAAP)
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||||
(Dollars in millions)
|
2020
|
|
2019
|
|
V%
|
|
|
2020
|
|
2019
|
|
V%
|
|
||||
GE Industrial revenues (GAAP)
|
$
|
16,066
|
|
$
|
21,416
|
|
(25.0
|
)%
|
|
$
|
34,910
|
|
$
|
41,740
|
|
(16.4
|
)%
|
Less: acquisitions
|
26
|
|
19
|
|
|
|
|
68
|
|
39
|
|
|
|
||||
Less: business dispositions(a)
|
8
|
|
919
|
|
|
|
|
37
|
|
1,300
|
|
|
|
||||
Less: foreign currency effect(b)
|
(280
|
)
|
—
|
|
|
|
|
(446
|
)
|
—
|
|
|
|
||||
GE Industrial organic revenues (Non-GAAP)
|
$
|
16,312
|
|
$
|
20,478
|
|
(20.3
|
)%
|
|
$
|
35,252
|
|
$
|
40,401
|
|
(12.7
|
)%
|
Less: BioPharma organic revenue (Non-GAAP)
|
—
|
|
—
|
|
|
|
|
839
|
|
762
|
|
|
|
||||
GE Industrial organic revenues excluding BioPharma organic revenues (Non-GAAP)
|
$
|
16,312
|
|
$
|
20,478
|
|
(20.3
|
)%
|
|
$
|
34,413
|
|
$
|
39,639
|
|
(13.2
|
)%
|
|
|
|
|
|
|
|
|
||||||||||
(a) Dispositions impact in 2019 primarily related to our BioPharma business, with revenues of $831 million, Middle River and Hamble site dispositions, with revenues of $125 million and $101 million, respectively, and Current within our Corporate segment, with revenues of $155 million.
(b) Foreign currency impact in 2019 is primarily driven by U.S. Dollar appreciation against Euro, Brazilian Real and Chinese Yen.
|
|||||||||||||||||
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.
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
ADJUSTED GE INDUSTRIAL PROFIT AND PROFIT MARGIN
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||
(EXCLUDING CERTAIN ITEMS) (NON-GAAP) (Dollars in millions)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
GE total revenues (GAAP)
|
$
|
16,066
|
|
$
|
21,416
|
|
|
$
|
34,910
|
|
$
|
41,740
|
|
|
|
|
|
|
|
||||||||
Costs
|
|
|
|
|
|
||||||||
GE total costs and expenses (GAAP)
|
$
|
19,105
|
|
$
|
21,972
|
|
|
$
|
38,238
|
|
$
|
42,073
|
|
Less: GE interest and other financial charges
|
396
|
|
382
|
|
|
766
|
|
902
|
|
||||
Less: non-operating benefit costs
|
596
|
|
558
|
|
|
1,212
|
|
1,122
|
|
||||
Less: restructuring & other(a)
|
433
|
|
345
|
|
|
641
|
|
611
|
|
||||
Less: goodwill impairments(b)
|
728
|
|
744
|
|
|
728
|
|
744
|
|
||||
Add: noncontrolling interests
|
(147
|
)
|
(1
|
)
|
|
(110
|
)
|
22
|
|
||||
Adjusted GE Industrial costs (Non-GAAP)
|
$
|
16,805
|
|
$
|
19,943
|
|
|
$
|
34,781
|
|
$
|
38,715
|
|
|
|
|
|
|
|
||||||||
Other Income
|
|
|
|
|
|
||||||||
GE other income (GAAP)
|
$
|
2,116
|
|
$
|
172
|
|
|
$
|
8,990
|
|
$
|
1,024
|
|
Less: unrealized gains (losses)(c)
|
1,825
|
|
(51
|
)
|
|
(3,968
|
)
|
(38
|
)
|
||||
Less: restructuring & other
|
—
|
|
—
|
|
|
—
|
|
9
|
|
||||
Less: gains (losses) and impairments for disposed or held for sale businesses(c)
|
74
|
|
(116
|
)
|
|
12,513
|
|
250
|
|
||||
Adjusted GE other income (Non-GAAP)
|
$
|
217
|
|
$
|
339
|
|
|
445
|
|
804
|
|
||
|
|
|
|
|
|
||||||||
GE Industrial profit (GAAP)
|
$
|
(922
|
)
|
$
|
(384
|
)
|
|
$
|
5,663
|
|
$
|
692
|
|
GE Industrial profit margin (GAAP)
|
(5.7
|
)%
|
(1.8
|
)%
|
|
16.2
|
%
|
1.7
|
%
|
||||
|
|
|
|
|
|
||||||||
Adjusted GE Industrial profit (Non-GAAP)
|
$
|
(521
|
)
|
$
|
1,812
|
|
|
$
|
575
|
|
$
|
3,829
|
|
Adjusted GE Industrial profit margin (Non-GAAP)
|
(3.2
|
)%
|
8.5
|
%
|
|
1.6
|
%
|
9.2
|
%
|
||||
|
|
|
|
|
|
||||||||
(a) See the Corporate Items and Eliminations - Restructuring section for further information.
|
|
|
|
||||||||||
(b) Included non-cash pre-tax impairment charge of $877 million net of $149 million attributable to noncontrolling interest for our Additive reporting unit within Aviation segment for the three and six months ended June 30, 2020. See Note 8 for further information.
|
|||||||||||||
(c) See the Corporate Items and Eliminations section for further information.
|
|||||||||||||
We believe these measures are meaningful because they increase the comparability of period-to-period results.
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
ADJUSTED EARNINGS (LOSS) (NON-GAAP)
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
(Dollars in millions)
|
2020
|
|
2019
|
|
V%
|
|
2020
|
|
2019
|
|
V%
|
||||
Consolidated earnings (loss) from continuing operations attributable to GE common shareholders (GAAP)(a)
|
$
|
(2,186
|
)
|
$
|
(302
|
)
|
U
|
|
$
|
4,135
|
|
$
|
600
|
|
F
|
Add: Accretion of redeemable noncontrolling interests (RNCI)
|
(135
|
)
|
—
|
|
|
|
(135
|
)
|
—
|
|
|
||||
Less: GE Capital earnings (loss) from continuing operations attributable to GE common shareholders (GAAP)
|
(1,476
|
)
|
(89
|
)
|
|
|
(1,506
|
)
|
46
|
|
|
||||
GE Industrial earnings (loss) (Non-GAAP)
|
(845
|
)
|
(213
|
)
|
U
|
|
5,506
|
|
554
|
|
F
|
||||
Non-operating benefits costs (pre-tax) (GAAP)
|
(596
|
)
|
(558
|
)
|
|
|
(1,212
|
)
|
(1,122
|
)
|
|
||||
Tax effect on non-operating benefit costs
|
125
|
|
117
|
|
|
|
255
|
|
236
|
|
|
||||
Less: non-operating benefit costs (net of tax)
|
(471
|
)
|
(441
|
)
|
|
|
(957
|
)
|
(886
|
)
|
|
||||
Gains (losses) and impairments for disposed or held for sale businesses (pre-tax)(b)
|
74
|
|
(116
|
)
|
|
|
12,513
|
|
250
|
|
|
||||
Tax effect on gains (losses) and impairments for disposed or held for sale businesses
|
30
|
|
2
|
|
|
|
(1,235
|
)
|
37
|
|
|
||||
Less: gains (losses) and impairments for disposed or held for sale businesses (net of tax)
|
104
|
|
(114
|
)
|
|
|
11,278
|
|
287
|
|
|
||||
Restructuring & other (pre-tax)(c)
|
(433
|
)
|
(345
|
)
|
|
|
(641
|
)
|
(602
|
)
|
|
||||
Tax effect on restructuring & other
|
91
|
|
71
|
|
|
|
134
|
|
124
|
|
|
||||
Less: restructuring & other (net of tax)
|
(342
|
)
|
(273
|
)
|
|
|
(507
|
)
|
(479
|
)
|
|
||||
Goodwill impairments (pre-tax)(d)
|
(728
|
)
|
(744
|
)
|
|
|
(728
|
)
|
(744
|
)
|
|
||||
Tax effect on goodwill impairments
|
(23
|
)
|
(55
|
)
|
|
|
(23
|
)
|
(55
|
)
|
|
||||
Less: goodwill impairments (net of tax)
|
(751
|
)
|
(799
|
)
|
|
|
(751
|
)
|
(799
|
)
|
|
||||
Unrealized gains (losses)(b)
|
1,825
|
|
(51
|
)
|
|
|
(3,968
|
)
|
(38
|
)
|
|
||||
Tax on unrealized gains (losses)
|
(277
|
)
|
11
|
|
|
|
819
|
|
8
|
|
|
||||
Less: unrealized gains (losses)
|
1,548
|
|
(40
|
)
|
|
|
(3,149
|
)
|
(30
|
)
|
|
||||
Debt extinguishment costs
|
(63
|
)
|
—
|
|
|
|
(63
|
)
|
—
|
|
|
||||
Tax effect on debt extinguishment costs
|
13
|
|
—
|
|
|
|
13
|
|
—
|
|
|
||||
Less: debt extinguishment costs (net of tax)
|
(50
|
)
|
—
|
|
|
|
(50
|
)
|
—
|
|
|
||||
BioPharma deal expense (pre-tax)
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
||||
Tax on BioPharma deal expense
|
—
|
|
—
|
|
|
|
—
|
|
(14
|
)
|
|
||||
Less: BioPharma deal expense (net of tax)
|
—
|
|
—
|
|
|
|
—
|
|
(14
|
)
|
|
||||
Accretion of RNCI
|
(135
|
)
|
—
|
|
|
|
(135
|
)
|
—
|
|
|
||||
Tax effect on accretion of RNCI
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
||||
Less: Accretion of RNCI (net of tax)
|
(135
|
)
|
—
|
|
|
|
(135
|
)
|
—
|
|
|
||||
Less: GE Industrial U.S. tax reform enactment adjustment
|
—
|
|
—
|
|
|
|
—
|
|
(101
|
)
|
|
||||
Adjusted GE Industrial earnings (loss) (Non-GAAP)
|
$
|
(748
|
)
|
$
|
1,454
|
|
U
|
|
$
|
(222
|
)
|
$
|
2,577
|
|
U
|
|
|
|
|
|
|
|
|
|
|
||||||
GE Capital earnings (loss) from continuing operations attributable to GE common shareholders (GAAP)
|
(1,476
|
)
|
(89
|
)
|
U
|
|
(1,506
|
)
|
46
|
|
U
|
||||
Goodwill impairments (pre-tax)(e)
|
(839
|
)
|
—
|
|
|
|
(839
|
)
|
—
|
|
|
||||
Tax effect on goodwill impairments
|
3
|
|
—
|
|
|
|
3
|
|
—
|
|
|
||||
Less: goodwill impairments (net of tax)
|
(836
|
)
|
—
|
|
|
|
(836
|
)
|
—
|
|
|
||||
Debt extinguishment costs
|
(143
|
)
|
—
|
|
|
|
(143
|
)
|
—
|
|
|
||||
Tax effect on debt extinguishment costs
|
24
|
|
—
|
|
|
|
24
|
|
—
|
|
|
||||
Less: debt extinguishment costs (net of tax)
|
(119
|
)
|
—
|
|
|
|
(119
|
)
|
—
|
|
|
||||
Less: GE Capital U.S. tax reform enactment adjustment
|
—
|
|
—
|
|
|
|
—
|
|
99
|
|
|
||||
Less: GE Capital tax benefit related to BioPharma sale
|
—
|
|
—
|
|
|
|
88
|
|
—
|
|
|
||||
Adjusted GE Capital earnings (loss) (Non-GAAP)
|
$
|
(522
|
)
|
$
|
(89
|
)
|
U
|
|
$
|
(640
|
)
|
$
|
(53
|
)
|
U
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted GE Industrial earnings (loss) (Non-GAAP)
|
$
|
(748
|
)
|
$
|
1,454
|
|
U
|
|
$
|
(222
|
)
|
$
|
2,577
|
|
U
|
Add: Adjusted GE Capital earnings (loss) (Non-GAAP)
|
(522
|
)
|
(89
|
)
|
U
|
|
(640
|
)
|
(53
|
)
|
U
|
||||
Adjusted earnings (loss) (Non-GAAP)
|
$
|
(1,270
|
)
|
$
|
1,365
|
|
U
|
|
$
|
(862
|
)
|
$
|
2,524
|
|
U
|
|
|
|
|
|
|
|
|
|
|
||||||
(a) Earnings for per-share calculation includes allocation of participating securities pursuant to the two-class method. See Note 16 for further information.
|
|||||||||||||||
(b) See the Corporate Items and Eliminations section for further information.
|
|
|
|
|
|||||||||||
(c) See the Corporate Items and Eliminations - Restructuring section for further information.
|
|
|
|
|
|||||||||||
(d) Included non-cash pre-tax impairment charge of $877 million net of $149 million attributable to noncontrolling interest for our Additive reporting unit within Aviation segment for the three and six months ended June 30, 2020. See Note 8 for further information.
|
|||||||||||||||
(e) See Note 8 for further information.
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
ADJUSTED EARNINGS (LOSS) PER SHARE (EPS)
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
(NON-GAAP)
|
2020
|
|
2019
|
|
V%
|
|
2020
|
|
2019
|
|
V%
|
||||
Consolidated EPS from continuing operations attributable to GE common shareholders (GAAP)
|
$
|
(0.25
|
)
|
$
|
(0.03
|
)
|
U
|
|
$
|
0.47
|
|
$
|
0.07
|
|
F
|
Add: Accretion of redeemable noncontrolling interests (RNCI)
|
(0.02
|
)
|
—
|
|
|
|
(0.02
|
)
|
—
|
|
|
||||
Less: GE Capital EPS from continuing operations attributable to GE common shareholders (GAAP)
|
(0.17
|
)
|
(0.01
|
)
|
|
|
(0.17
|
)
|
0.01
|
|
|
||||
GE Industrial EPS (Non-GAAP)
|
(0.10
|
)
|
(0.02
|
)
|
U
|
|
$
|
0.63
|
|
$
|
0.06
|
|
F
|
||
Non-operating benefits costs (pre-tax) (GAAP)
|
(0.07
|
)
|
(0.06
|
)
|
|
|
(0.14
|
)
|
(0.13
|
)
|
|
||||
Tax effect on non-operating benefit costs
|
0.01
|
|
0.01
|
|
|
|
0.03
|
|
0.03
|
|
|
||||
Less: non-operating benefit costs (net of tax)
|
(0.05
|
)
|
(0.05
|
)
|
|
|
(0.11
|
)
|
(0.10
|
)
|
|
||||
Gains (losses) and impairments for disposed or held for sale businesses (pre-tax)
|
0.01
|
|
(0.01
|
)
|
|
|
1.43
|
|
0.03
|
|
|
||||
Tax effect on gains (losses) and impairments for disposed or held for sale businesses
|
—
|
|
—
|
|
|
|
(0.14
|
)
|
—
|
|
|
||||
Less: gains (losses) and impairments for disposed or held for sale businesses (net of tax)
|
0.01
|
|
(0.01
|
)
|
|
|
1.29
|
|
0.03
|
|
|
||||
Restructuring & other (pre-tax)
|
(0.05
|
)
|
(0.04
|
)
|
|
|
(0.07
|
)
|
(0.07
|
)
|
|
||||
Tax effect on restructuring & other
|
0.01
|
|
0.01
|
|
|
|
0.02
|
|
0.01
|
|
|
||||
Less: restructuring & other (net of tax)
|
(0.04
|
)
|
(0.03
|
)
|
|
|
(0.06
|
)
|
(0.05
|
)
|
|
||||
Goodwill impairments (pre-tax)
|
(0.08
|
)
|
(0.09
|
)
|
|
|
(0.08
|
)
|
(0.09
|
)
|
|
||||
Tax effect on goodwill impairments
|
—
|
|
(0.01
|
)
|
|
|
—
|
|
(0.01
|
)
|
|
||||
Less: goodwill impairments (net of tax)
|
(0.09
|
)
|
(0.09
|
)
|
|
|
(0.09
|
)
|
(0.09
|
)
|
|
||||
Unrealized gains (losses)
|
0.21
|
|
(0.01
|
)
|
|
|
(0.45
|
)
|
—
|
|
|
||||
Tax on unrealized gains (losses)
|
(0.03
|
)
|
—
|
|
|
|
0.09
|
|
—
|
|
|
||||
Less: unrealized gains (losses)
|
0.18
|
|
—
|
|
|
|
(0.36
|
)
|
—
|
|
|
||||
Debt extinguishment costs
|
(0.01
|
)
|
—
|
|
|
|
(0.01
|
)
|
—
|
|
|
||||
Tax effect on debt extinguishment costs
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
||||
Less: debt extinguishment costs (net of tax)
|
(0.01
|
)
|
—
|
|
|
|
(0.01
|
)
|
—
|
|
|
||||
BioPharma deal expense (pre-tax)
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
||||
Tax on BioPharma deal expense
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
||||
Less: BioPharma deal expense (net of tax)
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
||||
Accretion of RNCI
|
(0.02
|
)
|
—
|
|
|
|
(0.02
|
)
|
—
|
|
|
||||
Tax effect on accretion of RNCI
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
||||
Less: Accretion of RNCI (net of tax)
|
(0.02
|
)
|
—
|
|
|
|
(0.02
|
)
|
—
|
|
|
||||
Less: GE Industrial U.S. tax reform enactment adjustment
|
—
|
|
—
|
|
|
|
—
|
|
(0.01
|
)
|
|
||||
Adjusted GE Industrial EPS (Non-GAAP)
|
$
|
(0.09
|
)
|
$
|
0.17
|
|
U
|
|
$
|
(0.03
|
)
|
$
|
0.30
|
|
U
|
|
|
|
|
|
|
|
|
|
|
||||||
GE Capital EPS from continuing operations attributable to GE common shareholders (GAAP)
|
(0.17
|
)
|
(0.01
|
)
|
U
|
|
(0.17
|
)
|
0.01
|
|
U
|
||||
Goodwill impairments (pre-tax)
|
(0.10
|
)
|
—
|
|
|
|
(0.10
|
)
|
—
|
|
|
||||
Tax effect on goodwill impairments
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
||||
Less: goodwill impairments (net of tax)
|
(0.10
|
)
|
—
|
|
|
|
(0.10
|
)
|
—
|
|
|
||||
Debt extinguishment costs
|
(0.02
|
)
|
—
|
|
|
|
(0.02
|
)
|
—
|
|
|
||||
Tax effect on debt extinguishment costs
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
|
||||
Less: debt extinguishment costs (net of tax)
|
(0.01
|
)
|
—
|
|
|
|
(0.01
|
)
|
—
|
|
|
||||
Less: GE Capital U.S. tax reform enactment adjustment
|
—
|
|
—
|
|
|
|
—
|
|
0.01
|
|
|
||||
Less: GE Capital tax benefit related to BioPharma sale
|
—
|
|
—
|
|
|
|
0.01
|
|
|
|
|||||
Adjusted GE Capital EPS (Non-GAAP)
|
$
|
(0.06
|
)
|
$
|
(0.01
|
)
|
U
|
|
$
|
(0.07
|
)
|
$
|
(0.01
|
)
|
U
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted GE Industrial EPS (Non-GAAP)
|
$
|
(0.09
|
)
|
$
|
0.17
|
|
U
|
|
$
|
(0.03
|
)
|
$
|
0.30
|
|
U
|
Add: Adjusted GE Capital EPS (Non-GAAP)
|
(0.06
|
)
|
(0.01
|
)
|
U
|
|
(0.07
|
)
|
(0.01
|
)
|
U
|
||||
Adjusted EPS (Non-GAAP)
|
$
|
(0.15
|
)
|
$
|
0.16
|
|
U
|
|
$
|
(0.10
|
)
|
$
|
0.29
|
|
U
|
|
|
|
|
|
|
|
|
|
|
||||||
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.
|
MD&A
|
NON-GAAP FINANCIAL MEASURES
|
GE INDUSTRIAL FREE CASH FLOWS (FCF) (NON-GAAP)
|
Six months ended June 30
|
|||||
(In millions)
|
2020
|
|
2019
|
|
||
GE CFOA (GAAP)
|
$
|
(3,266
|
)
|
$
|
(1,068
|
)
|
Add: gross additions to property, plant and equipment
|
(1,002
|
)
|
(1,116
|
)
|
||
Add: gross additions to internal-use software
|
(95
|
)
|
(137
|
)
|
||
Less: taxes related to business sales
|
(88
|
)
|
(108
|
)
|
||
GE Industrial free cash flows (Non-GAAP)
|
$
|
(4,275
|
)
|
$
|
(2,212
|
)
|
|
|
|
|
|
||
We believe investors may find it useful to compare GE's Industrial free cash flows* performance without the effects of cash used for taxes related to business sales. We believe this measure will better allow management and investors to evaluate the capacity of our industrial operations to generate free cash flows.
|
OTHER
|
|
|
RISK FACTORS
|
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF EARNINGS (LOSS)
|
Three months ended June 30
|
|||||
(UNAUDITED)
|
Consolidated
|
|||||
(In millions; per-share amounts in dollars)
|
2020
|
|
2019
|
|
||
Sales of goods
|
$
|
10,732
|
|
$
|
14,101
|
|
Sales of services
|
5,328
|
|
7,269
|
|
||
GE Capital revenues from services
|
1,690
|
|
2,043
|
|
||
Total revenues (Note 9)
|
17,750
|
|
23,414
|
|
||
|
|
|
||||
Cost of goods sold
|
10,306
|
|
11,646
|
|
||
Cost of services sold
|
4,777
|
|
5,766
|
|
||
Selling, general and administrative expenses
|
3,079
|
|
3,425
|
|
||
Interest and other financial charges
|
997
|
|
929
|
|
||
Insurance losses and annuity benefits
|
564
|
|
638
|
|
||
Goodwill impairments (Note 8)
|
1,717
|
|
744
|
|
||
Non-operating benefit costs
|
598
|
|
561
|
|
||
Other costs and expenses
|
129
|
|
166
|
|
||
Total costs and expenses
|
22,166
|
|
23,874
|
|
||
|
|
|
||||
Other income (Note 22)
|
2,078
|
|
164
|
|
||
GE Capital earnings (loss) from continuing operations
|
—
|
|
—
|
|
||
|
|
|
||||
Earnings (loss) from continuing operations before income taxes
|
(2,339
|
)
|
(296
|
)
|
||
Benefit (provision) for income taxes
|
199
|
|
181
|
|
||
Earnings (loss) from continuing operations
|
(2,139
|
)
|
(115
|
)
|
||
Earnings (loss) from discontinued operations, net of taxes (Note 2)
|
7
|
|
219
|
|
||
Net earnings (loss)
|
(2,132
|
)
|
104
|
|
||
Less net earnings (loss) attributable to noncontrolling interests
|
(145
|
)
|
(23
|
)
|
||
Net earnings (loss) attributable to the Company
|
(1,987
|
)
|
127
|
|
||
Preferred stock dividends
|
(192
|
)
|
(188
|
)
|
||
Net earnings (loss) attributable to GE common shareholders
|
$
|
(2,179
|
)
|
$
|
(61
|
)
|
|
|
|
||||
Amounts attributable to GE common shareholders
|
|
|
||||
Earnings (loss) from continuing operations
|
$
|
(2,139
|
)
|
$
|
(115
|
)
|
Less net earnings (loss) attributable to noncontrolling interests,
|
|
|
||||
continuing operations
|
(145
|
)
|
(1
|
)
|
||
Earnings (loss) from continuing operations attributable to the Company
|
(1,995
|
)
|
(114
|
)
|
||
Preferred stock dividends
|
(192
|
)
|
(188
|
)
|
||
Earnings (loss) from continuing operations attributable
|
|
|
||||
to GE common shareholders
|
(2,186
|
)
|
(302
|
)
|
||
Earnings (loss) from discontinued operations, net of taxes
|
7
|
|
219
|
|
||
Less net earnings (loss) attributable to
|
|
|
||||
noncontrolling interests, discontinued operations
|
—
|
|
(23
|
)
|
||
Net earnings (loss) attributable to GE common shareholders
|
$
|
(2,179
|
)
|
$
|
(61
|
)
|
|
|
|
||||
Earnings (loss) per share from continuing operations (Note 16)
|
|
|
||||
Diluted earnings (loss) per share
|
$
|
(0.27
|
)
|
$
|
(0.03
|
)
|
Basic earnings (loss) per share
|
$
|
(0.27
|
)
|
$
|
(0.03
|
)
|
|
|
|
||||
Net earnings (loss) per share (Note 16)
|
|
|
||||
Diluted earnings (loss) per share
|
$
|
(0.26
|
)
|
$
|
(0.01
|
)
|
Basic earnings (loss) per share
|
$
|
(0.26
|
)
|
$
|
(0.01
|
)
|
|
|
|
||||
Dividends declared per common share
|
$
|
0.01
|
|
$
|
0.01
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF EARNINGS (LOSS) (CONTINUED)
|
Three months ended June 30
|
||||||||||||
(UNAUDITED)
|
GE(a)
|
|
GE Capital
|
||||||||||
(In millions; per-share amounts in dollars)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
Sales of goods
|
$
|
10,728
|
|
$
|
14,117
|
|
|
$
|
13
|
|
$
|
18
|
|
Sales of services
|
5,337
|
|
7,298
|
|
|
—
|
|
—
|
|
||||
GE Capital revenues from services
|
—
|
|
—
|
|
|
1,833
|
|
2,303
|
|
||||
Total revenues
|
16,066
|
|
21,416
|
|
|
1,845
|
|
2,321
|
|
||||
|
|
|
|
|
|
||||||||
Cost of goods sold
|
10,305
|
|
11,666
|
|
|
10
|
|
14
|
|
||||
Cost of services sold
|
3,952
|
|
5,250
|
|
|
835
|
|
512
|
|
||||
Selling, general and administrative expenses
|
2,979
|
|
3,367
|
|
|
162
|
|
211
|
|
||||
Interest and other financial charges
|
396
|
|
382
|
|
|
657
|
|
646
|
|
||||
Insurance losses and annuity benefits
|
—
|
|
—
|
|
|
577
|
|
668
|
|
||||
Goodwill impairments (Note 8)
|
877
|
|
744
|
|
|
839
|
|
—
|
|
||||
Non-operating benefit costs
|
596
|
|
558
|
|
|
2
|
|
3
|
|
||||
Other costs and expenses
|
—
|
|
5
|
|
|
178
|
|
178
|
|
||||
Total costs and expenses
|
19,105
|
|
21,972
|
|
|
3,262
|
|
2,233
|
|
||||
|
|
|
|
|
|
||||||||
Other income (Note 22)
|
2,116
|
|
172
|
|
|
—
|
|
—
|
|
||||
GE Capital earnings (loss) from continuing operations
|
(1,476
|
)
|
(89
|
)
|
|
—
|
|
—
|
|
||||
|
|
|
|
|
|
||||||||
Earnings (loss) from continuing operations before income taxes
|
(2,399
|
)
|
(473
|
)
|
|
(1,416
|
)
|
88
|
|
||||
Benefit (provision) for income taxes
|
66
|
|
170
|
|
|
133
|
|
11
|
|
||||
Earnings (loss) from continuing operations
|
(2,333
|
)
|
(303
|
)
|
|
(1,283
|
)
|
99
|
|
||||
Earnings (loss) from discontinued operations, net of taxes (Note 2)
|
7
|
|
219
|
|
|
17
|
|
238
|
|
||||
Net earnings (loss)
|
(2,325
|
)
|
(84
|
)
|
|
(1,266
|
)
|
336
|
|
||||
Less net earnings (loss) attributable to noncontrolling interests
|
(147
|
)
|
(23
|
)
|
|
2
|
|
—
|
|
||||
Net earnings (loss) attributable to the Company
|
(2,179
|
)
|
(61
|
)
|
|
(1,268
|
)
|
336
|
|
||||
Preferred stock dividends
|
—
|
|
—
|
|
|
(192
|
)
|
(188
|
)
|
||||
Net earnings (loss) attributable to GE common shareholders
|
$
|
(2,179
|
)
|
$
|
(61
|
)
|
|
$
|
(1,459
|
)
|
$
|
148
|
|
|
|
|
|
|
|
||||||||
Amounts attributable to GE common shareholders:
|
|
|
|
|
|
||||||||
Earnings (loss) from continuing operations
|
$
|
(2,333
|
)
|
$
|
(303
|
)
|
|
$
|
(1,283
|
)
|
$
|
99
|
|
Less net earnings (loss) attributable to noncontrolling interests,
|
|
|
|
|
|
||||||||
continuing operations
|
(147
|
)
|
(1
|
)
|
|
2
|
|
—
|
|
||||
Earnings (loss) from continuing operations attributable to the Company
|
(2,186
|
)
|
(302
|
)
|
|
(1,285
|
)
|
99
|
|
||||
Preferred stock dividends
|
—
|
|
—
|
|
|
(192
|
)
|
(188
|
)
|
||||
Earnings (loss) from continuing operations attributable
|
|
|
|
|
|
||||||||
to GE common shareholders
|
(2,186
|
)
|
(302
|
)
|
|
(1,476
|
)
|
(89
|
)
|
||||
Earnings (loss) from discontinued operations, net of taxes
|
7
|
|
219
|
|
|
17
|
|
238
|
|
||||
Less net earnings (loss) attributable to
|
|
|
|
|
|
||||||||
noncontrolling interests, discontinued operations
|
—
|
|
(23
|
)
|
|
—
|
|
—
|
|
||||
Net earnings (loss) attributable to GE common shareholders
|
$
|
(2,179
|
)
|
$
|
(61
|
)
|
|
$
|
(1,459
|
)
|
$
|
148
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF EARNINGS (LOSS)
|
Six months ended June 30
|
|||||
(UNAUDITED)
|
Consolidated
|
|||||
(In millions; per-share amounts in dollars)
|
2020
|
|
2019
|
|
||
Sales of goods
|
$
|
23,096
|
|
$
|
27,351
|
|
Sales of services
|
11,778
|
|
14,277
|
|
||
GE Capital revenues from services
|
3,399
|
|
3,988
|
|
||
Total revenues (Note 9)
|
38,273
|
|
45,616
|
|
||
|
|
|
||||
Cost of goods sold
|
20,846
|
|
22,620
|
|
||
Cost of services sold
|
9,933
|
|
11,000
|
|
||
Selling, general and administrative expenses
|
6,144
|
|
6,827
|
|
||
Interest and other financial charges
|
1,791
|
|
1,993
|
|
||
Insurance losses and annuity benefits
|
1,199
|
|
1,249
|
|
||
Goodwill impairments (Note 8)
|
1,717
|
|
744
|
|
||
Non-operating benefit costs
|
1,216
|
|
1,129
|
|
||
Other costs and expenses
|
238
|
|
238
|
|
||
Total costs and expenses
|
43,084
|
|
45,801
|
|
||
|
|
|
||||
Other income (Note 22)
|
8,947
|
|
1,012
|
|
||
GE Capital earnings (loss) from continuing operations
|
—
|
|
—
|
|
||
|
|
|
||||
Earnings (loss) from continuing operations before income taxes
|
4,136
|
|
827
|
|
||
Benefit (provision) for income taxes
|
136
|
|
41
|
|
||
Earnings (loss) from continuing operations
|
4,272
|
|
868
|
|
||
Earnings (loss) from discontinued operations, net of taxes (Note 2)
|
(171
|
)
|
2,881
|
|
||
Net earnings (loss)
|
4,101
|
|
3,749
|
|
||
Less net earnings (loss) attributable to noncontrolling interests
|
(111
|
)
|
34
|
|
||
Net earnings (loss) attributable to the Company
|
4,212
|
|
3,716
|
|
||
Preferred stock dividends
|
(235
|
)
|
(228
|
)
|
||
Net earnings (loss) attributable to GE common shareholders
|
$
|
3,977
|
|
$
|
3,488
|
|
|
|
|
||||
Amounts attributable to GE common shareholders
|
|
|
||||
Earnings (loss) from continuing operations
|
$
|
4,272
|
|
$
|
868
|
|
Less net earnings (loss) attributable to noncontrolling interests,
|
|
|
||||
continuing operations
|
(108
|
)
|
22
|
|
||
Earnings (loss) from continuing operations attributable to the Company
|
4,381
|
|
846
|
|
||
Preferred stock dividends
|
(235
|
)
|
(228
|
)
|
||
Earnings (loss) from continuing operations attributable
|
|
|
||||
to GE common shareholders
|
4,146
|
|
618
|
|
||
Earnings (loss) from discontinued operations, net of taxes
|
(171
|
)
|
2,881
|
|
||
Less net earnings (loss) attributable to noncontrolling interests,
|
|
|
||||
discontinued operations
|
(2
|
)
|
11
|
|
||
Net earnings (loss) attributable to GE common shareholders
|
$
|
3,977
|
|
$
|
3,488
|
|
|
|
|
||||
Earnings (loss) per share from continuing operations (Note 16)
|
|
|
||||
Diluted earnings (loss) per share
|
$
|
0.46
|
|
$
|
0.07
|
|
Basic earnings (loss) per share
|
$
|
0.46
|
|
$
|
0.07
|
|
|
|
|
||||
Net earnings (loss) per share (Note 16)
|
|
|
||||
Diluted earnings (loss) per share
|
$
|
0.44
|
|
$
|
0.40
|
|
Basic earnings (loss) per share
|
$
|
0.44
|
|
$
|
0.40
|
|
|
|
|
||||
Dividends declared per common share
|
$
|
0.02
|
|
$
|
0.02
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF EARNINGS (LOSS) (CONTINUED)
|
Six months ended June 30
|
||||||||||||
(UNAUDITED)
|
GE(a)
|
|
GE Capital
|
||||||||||
(In millions; per-share amounts in dollars)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
Sales of goods
|
$
|
23,087
|
|
$
|
27,432
|
|
|
$
|
37
|
|
$
|
34
|
|
Sales of services
|
11,823
|
|
14,308
|
|
|
—
|
|
—
|
|
||||
GE Capital revenues from services
|
—
|
|
—
|
|
|
3,731
|
|
4,514
|
|
||||
Total revenues
|
34,910
|
|
41,740
|
|
|
3,768
|
|
4,548
|
|
||||
|
|
|
|
|
|
||||||||
Cost of goods sold
|
20,846
|
|
22,715
|
|
|
28
|
|
27
|
|
||||
Cost of services sold
|
8,608
|
|
10,031
|
|
|
1,370
|
|
999
|
|
||||
Selling, general and administrative expenses
|
5,928
|
|
6,562
|
|
|
365
|
|
478
|
|
||||
Interest and other financial charges
|
766
|
|
902
|
|
|
1,161
|
|
1,323
|
|
||||
Insurance losses and annuity benefits
|
—
|
|
—
|
|
|
1,230
|
|
1,302
|
|
||||
Goodwill impairments (Note 8)
|
877
|
|
744
|
|
|
839
|
|
—
|
|
||||
Non-operating benefit costs
|
1,212
|
|
1,122
|
|
|
5
|
|
8
|
|
||||
Other costs and expenses
|
—
|
|
(4
|
)
|
|
297
|
|
277
|
|
||||
Total costs and expenses
|
38,238
|
|
42,073
|
|
|
5,295
|
|
4,413
|
|
||||
|
|
|
|
|
|
||||||||
Other income (Note 22)
|
8,990
|
|
1,024
|
|
|
—
|
|
—
|
|
||||
GE Capital earnings (loss) from continuing operations
|
(1,506
|
)
|
46
|
|
|
—
|
|
—
|
|
||||
|
|
|
|
|
|
||||||||
Earnings (loss) from continuing operations before income taxes
|
4,156
|
|
738
|
|
|
(1,526
|
)
|
135
|
|
||||
Benefit (provision) for income taxes
|
(121
|
)
|
(97
|
)
|
|
257
|
|
139
|
|
||||
Earnings (loss) from continuing operations
|
4,035
|
|
640
|
|
|
(1,270
|
)
|
273
|
|
||||
Earnings (loss) from discontinued operations, net of taxes (Note 2)
|
(171
|
)
|
2,881
|
|
|
(147
|
)
|
273
|
|
||||
Net earnings (loss)
|
3,865
|
|
3,522
|
|
|
(1,417
|
)
|
547
|
|
||||
Less net earnings (loss) attributable to noncontrolling interests
|
(113
|
)
|
33
|
|
|
2
|
|
0
|
|
||||
Net earnings (loss) attributable to the Company
|
3,977
|
|
3,488
|
|
|
(1,418
|
)
|
547
|
|
||||
Preferred stock dividends
|
—
|
|
—
|
|
|
(235
|
)
|
(228
|
)
|
||||
Net earnings (loss) attributable to GE common shareholders
|
$
|
3,977
|
|
$
|
3,488
|
|
|
$
|
(1,653
|
)
|
$
|
319
|
|
|
|
|
|
|
|
||||||||
Amounts attributable to GE common shareholders:
|
|
|
|
|
|
||||||||
Earnings (loss) from continuing operations
|
$
|
4,035
|
|
$
|
640
|
|
|
$
|
(1,270
|
)
|
$
|
273
|
|
Less net earnings (loss) attributable to noncontrolling interests,
|
|
|
|
|
|
||||||||
continuing operations
|
(110
|
)
|
22
|
|
|
2
|
|
0
|
|
||||
Earnings (loss) from continuing operations attributable to the Company
|
4,146
|
|
618
|
|
|
(1,272
|
)
|
273
|
|
||||
Preferred stock dividends
|
—
|
|
—
|
|
|
(235
|
)
|
(228
|
)
|
||||
Earnings (loss) from continuing operations attributable
|
|
|
|
|
|
||||||||
to GE common shareholders
|
4,146
|
|
618
|
|
|
(1,506
|
)
|
46
|
|
||||
Earnings (loss) from discontinued operations, net of taxes
|
(171
|
)
|
2,881
|
|
|
(147
|
)
|
273
|
|
||||
Less net earnings (loss) attributable to noncontrolling interests,
|
|
|
|
|
|
||||||||
discontinued operations
|
(2
|
)
|
11
|
|
|
—
|
|
—
|
|
||||
Net earnings (loss) attributable to GE common shareholders
|
$
|
3,977
|
|
$
|
3,488
|
|
|
$
|
(1,653
|
)
|
$
|
319
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF FINANCIAL POSITION (UNAUDITED)
|
Consolidated
|
|||||
(In millions, except share amounts)
|
June 30, 2020
|
|
December 31, 2019
|
|
||
Cash, cash equivalents and restricted cash
|
$
|
41,431
|
|
$
|
36,394
|
|
Investment securities (Note 3)
|
47,117
|
|
48,521
|
|
||
Current receivables (Note 4)
|
16,041
|
|
16,769
|
|
||
Financing receivables – net (Note 5)
|
3,095
|
|
3,134
|
|
||
Inventories (Note 6)
|
15,251
|
|
14,104
|
|
||
Other GE Capital receivables
|
7,578
|
|
7,144
|
|
||
Property, plant and equipment – net (Note 7)
|
45,503
|
|
46,186
|
|
||
Receivable from GE Capital
|
—
|
|
—
|
|
||
Investment in GE Capital
|
—
|
|
—
|
|
||
Goodwill (Note 8)
|
24,951
|
|
26,734
|
|
||
Other intangible assets – net (Note 8)
|
10,168
|
|
10,653
|
|
||
Contract and other deferred assets (Note 10)
|
15,555
|
|
16,801
|
|
||
All other assets
|
15,514
|
|
16,461
|
|
||
Deferred income taxes (Note 14)
|
10,665
|
|
9,889
|
|
||
Assets of businesses held for sale (Note 2)
|
—
|
|
9,149
|
|
||
Assets of discontinued operations (Note 2)
|
3,617
|
|
4,109
|
|
||
Total assets
|
$
|
256,487
|
|
$
|
266,048
|
|
|
|
|
||||
Short-term borrowings (Note 11)
|
$
|
9,059
|
|
$
|
22,072
|
|
Short-term borrowings assumed by GE (Note 11)
|
—
|
|
—
|
|
||
Accounts payable, principally trade accounts
|
13,469
|
|
15,926
|
|
||
Progress collections and deferred income (Note 10)
|
19,927
|
|
20,508
|
|
||
Other GE current liabilities
|
16,535
|
|
15,753
|
|
||
Non-recourse borrowings of consolidated securitization entities (Note 11)
|
396
|
|
1,655
|
|
||
Long-term borrowings (Note 11)
|
72,423
|
|
67,155
|
|
||
Long-term borrowings assumed by GE (Note 11)
|
—
|
|
—
|
|
||
Insurance liabilities and annuity benefits (Note 12)
|
40,954
|
|
39,826
|
|
||
Non-current compensation and benefits
|
30,906
|
|
31,687
|
|
||
All other liabilities
|
17,330
|
|
19,745
|
|
||
Liabilities of businesses held for sale (Note 2)
|
—
|
|
1,658
|
|
||
Liabilities of discontinued operations (Note 2)
|
235
|
|
203
|
|
||
Total liabilities
|
221,233
|
|
236,187
|
|
||
|
|
|
||||
Preferred stock (5,939,875 shares outstanding at both June 30, 2020
and December 31, 2019) |
6
|
|
6
|
|
||
Common stock (8,753,289,000 and 8,738,434,000 shares outstanding
at June 30, 2020 and December 31, 2019, respectively) |
702
|
|
702
|
|
||
Accumulated other comprehensive income (loss) – net attributable to GE
|
(10,194
|
)
|
(11,732
|
)
|
||
Other capital
|
34,292
|
|
34,405
|
|
||
Retained earnings
|
91,188
|
|
87,732
|
|
||
Less common stock held in treasury
|
(82,320
|
)
|
(82,797
|
)
|
||
Total GE shareholders’ equity
|
33,674
|
|
28,316
|
|
||
Noncontrolling interests
|
1,579
|
|
1,545
|
|
||
Total equity
|
35,254
|
|
29,861
|
|
||
Total liabilities and equity
|
$
|
256,487
|
|
$
|
266,048
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF FINANCIAL POSITION (CONTINUED)
|
GE(a)
|
|
GE Capital
|
||||||||||
(UNAUDITED) (In millions, except share amounts)
|
June 30,
2020 |
|
December 31, 2019
|
|
|
June 30,
2020 |
|
December 31, 2019
|
|
||||
Cash, cash equivalents and restricted cash
|
$
|
25,428
|
|
$
|
17,613
|
|
|
$
|
16,003
|
|
$
|
18,781
|
|
Investment securities (Note 3)
|
5,997
|
|
10,008
|
|
|
41,121
|
|
38,514
|
|
||||
Current receivables (Note 4)
|
12,744
|
|
13,883
|
|
|
—
|
|
—
|
|
||||
Financing receivables - net (Note 5)
|
—
|
|
—
|
|
|
6,959
|
|
6,979
|
|
||||
Inventories (Note 6)
|
15,251
|
|
14,104
|
|
|
—
|
|
—
|
|
||||
Other GE Capital receivables
|
—
|
|
—
|
|
|
10,456
|
|
11,767
|
|
||||
Property, plant and equipment – net (Note 7)
|
16,718
|
|
17,447
|
|
|
29,923
|
|
29,886
|
|
||||
Receivable from GE Capital
|
20,672
|
|
19,142
|
|
|
—
|
|
—
|
|
||||
Investment in GE Capital
|
13,587
|
|
15,299
|
|
|
—
|
|
—
|
|
||||
Goodwill (Note 8)
|
24,951
|
|
25,895
|
|
|
—
|
|
839
|
|
||||
Other intangible assets – net (Note 8)
|
10,009
|
|
10,461
|
|
|
159
|
|
192
|
|
||||
Contract and other deferred assets (Note 10)
|
15,587
|
|
16,833
|
|
|
—
|
|
—
|
|
||||
All other assets
|
8,419
|
|
8,399
|
|
|
7,934
|
|
8,648
|
|
||||
Deferred income taxes (Note 14)
|
8,765
|
|
8,189
|
|
|
1,900
|
|
1,700
|
|
||||
Assets of businesses held for sale (Note 2)
|
—
|
|
8,626
|
|
|
—
|
|
241
|
|
||||
Assets of discontinued operations (Note 2)
|
155
|
|
202
|
|
|
3,462
|
|
3,907
|
|
||||
Total assets
|
$
|
178,283
|
|
$
|
186,100
|
|
|
$
|
117,918
|
|
$
|
121,454
|
|
|
|
|
|
|
|
||||||||
Short-term borrowings (Note 11)
|
$
|
1,737
|
|
$
|
5,606
|
|
|
$
|
4,601
|
|
$
|
12,030
|
|
Short-term borrowings assumed by GE (Note 11)
|
3,679
|
|
5,473
|
|
|
3,237
|
|
2,104
|
|
||||
Accounts payable, principally trade accounts
|
13,809
|
|
17,702
|
|
|
1,010
|
|
886
|
|
||||
Progress collections and deferred income (Note 10)
|
20,091
|
|
20,694
|
|
|
—
|
|
—
|
|
||||
Other GE current liabilities
|
17,300
|
|
16,833
|
|
|
—
|
|
—
|
|
||||
Non-recourse borrowings of consolidated securitization entities (Note 11)
|
—
|
|
—
|
|
|
396
|
|
1,655
|
|
||||
Long-term borrowings (Note 11)
|
18,679
|
|
15,085
|
|
|
32,025
|
|
26,175
|
|
||||
Long-term borrowings assumed by GE (Note 11)
|
21,719
|
|
25,895
|
|
|
17,435
|
|
17,038
|
|
||||
Insurance liabilities and annuity benefits (Note 12)
|
—
|
|
—
|
|
|
41,416
|
|
40,232
|
|
||||
Non-current compensation and benefits
|
30,460
|
|
31,208
|
|
|
438
|
|
472
|
|
||||
All other liabilities
|
15,562
|
|
16,156
|
|
|
3,532
|
|
5,278
|
|
||||
Liabilities of businesses held for sale (Note 2)
|
—
|
|
1,620
|
|
|
—
|
|
52
|
|
||||
Liabilities of discontinued operations (Note 2)
|
151
|
|
106
|
|
|
84
|
|
97
|
|
||||
Total liabilities
|
143,187
|
|
156,379
|
|
|
104,174
|
|
106,016
|
|
||||
|
|
|
|
|
|
||||||||
Preferred stock (5,939,875 shares outstanding at both June 30, 2020
and December 31, 2019) |
6
|
|
6
|
|
|
6
|
|
6
|
|
||||
Common stock (8,753,289,000 and 8,738,434,000 shares outstanding
at June 30, 2020 and December 31, 2019, respectively) |
702
|
|
702
|
|
|
—
|
|
—
|
|
||||
Accumulated other comprehensive income (loss) - net attributable to GE
|
(10,194
|
)
|
(11,732
|
)
|
|
(906
|
)
|
(852
|
)
|
||||
Other capital
|
34,292
|
|
34,405
|
|
|
17,004
|
|
17,001
|
|
||||
Retained earnings
|
91,188
|
|
87,732
|
|
|
(2,517
|
)
|
(857
|
)
|
||||
Less common stock held in treasury
|
(82,320
|
)
|
(82,797
|
)
|
|
—
|
|
—
|
|
||||
Total GE shareholders’ equity
|
33,674
|
|
28,316
|
|
|
13,587
|
|
15,299
|
|
||||
Noncontrolling interests
|
1,421
|
|
1,406
|
|
|
157
|
|
139
|
|
||||
Total equity
|
35,096
|
|
29,721
|
|
|
13,744
|
|
15,438
|
|
||||
Total liabilities and equity
|
$
|
178,283
|
|
$
|
186,100
|
|
|
$
|
117,918
|
|
$
|
121,454
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF CASH FLOWS
|
Six months ended June 30
|
|||||
(UNAUDITED)
|
Consolidated
|
|||||
(In millions)
|
2020
|
|
2019
|
|
||
Net earnings (loss)
|
$
|
4,101
|
|
$
|
3,749
|
|
(Earnings) loss from discontinued operations
|
171
|
|
(2,881
|
)
|
||
Adjustments to reconcile net earnings (loss)
|
|
|
||||
to cash provided from operating activities
|
|
|
||||
Depreciation and amortization of property, plant and equipment (Note 7)
|
2,281
|
|
1,965
|
|
||
Amortization of intangible assets (Note 8)
|
648
|
|
724
|
|
||
Goodwill impairments (Note 8)
|
1,717
|
|
744
|
|
||
(Earnings) loss from continuing operations retained by GE Capital
|
—
|
|
—
|
|
||
(Gains) losses on purchases and sales of business interests (Note 22)
|
(12,482
|
)
|
(214
|
)
|
||
(Gains) losses on equity securities (Note 22)
|
4,031
|
|
54
|
|
||
Principal pension plans cost (Note 13)
|
1,798
|
|
1,693
|
|
||
Principal pension plans employer contributions
|
(144
|
)
|
(133
|
)
|
||
Other postretirement benefit plans (net)
|
(488
|
)
|
(542
|
)
|
||
Provision (benefit) for income taxes
|
(136
|
)
|
(41
|
)
|
||
Cash recovered (paid) during the year for income taxes
|
(622
|
)
|
(1,067
|
)
|
||
Decrease (increase) in contract and other deferred assets
|
501
|
|
(548
|
)
|
||
Decrease (increase) in GE current receivables
|
(190
|
)
|
(696
|
)
|
||
Decrease (increase) in inventories
|
(730
|
)
|
(1,951
|
)
|
||
Increase (decrease) in accounts payable
|
(2,015
|
)
|
828
|
|
||
Increase (decrease) in GE progress collections
|
(670
|
)
|
66
|
|
||
All other operating activities
|
911
|
|
(223
|
)
|
||
Cash from (used for) operating activities – continuing operations
|
(1,319
|
)
|
1,528
|
|
||
Cash from (used for) operating activities – discontinued operations
|
(53
|
)
|
(1,336
|
)
|
||
Cash from (used for) operating activities
|
(1,372
|
)
|
192
|
|
||
|
|
|
||||
Additions to property, plant and equipment
|
(1,614
|
)
|
(2,946
|
)
|
||
Dispositions of property, plant and equipment
|
1,054
|
|
1,912
|
|
||
Additions to internal-use software
|
(98
|
)
|
(141
|
)
|
||
Net decrease (increase) in financing receivables
|
(164
|
)
|
377
|
|
||
Proceeds from sale of discontinued operations
|
—
|
|
2,827
|
|
||
Proceeds from principal business dispositions
|
20,854
|
|
1,058
|
|
||
Net cash from (payments for) principal businesses purchased
|
(7
|
)
|
—
|
|
||
Capital contribution from GE to GE Capital
|
—
|
|
—
|
|
||
Sales of retained ownership interests in Wabtec
|
—
|
|
1,799
|
|
||
All other investing activities
|
(1,516
|
)
|
(2,620
|
)
|
||
Cash from (used for) investing activities – continuing operations
|
18,509
|
|
2,266
|
|
||
Cash from (used for) investing activities – discontinued operations
|
(91
|
)
|
1,115
|
|
||
Cash from (used for) investing activities
|
18,419
|
|
3,382
|
|
||
|
|
|
||||
Net increase (decrease) in borrowings (maturities of 90 days or less)
|
(3,412
|
)
|
(434
|
)
|
||
Newly issued debt (maturities longer than 90 days)
|
14,228
|
|
1,462
|
|
||
Repayments and other debt reductions (maturities longer than 90 days)
|
(22,005
|
)
|
(6,168
|
)
|
||
Capital contribution from GE to GE Capital
|
—
|
|
—
|
|
||
Dividends paid to shareholders
|
(324
|
)
|
(324
|
)
|
||
All other financing activities
|
(486
|
)
|
(627
|
)
|
||
Cash from (used for) financing activities – continuing operations
|
(11,999
|
)
|
(6,092
|
)
|
||
Cash from (used for) financing activities – discontinued operations
|
1
|
|
(469
|
)
|
||
Cash from (used for) financing activities
|
(11,998
|
)
|
(6,561
|
)
|
||
Effect of currency exchange rate changes on cash, cash equivalents and
restricted cash
|
(217
|
)
|
1
|
|
||
Increase (decrease) in cash, cash equivalents and restricted cash
|
4,831
|
|
(2,986
|
)
|
||
Cash, cash equivalents and restricted cash at beginning of year
|
37,077
|
|
35,548
|
|
||
Cash, cash equivalents and restricted cash at June 30
|
41,908
|
|
32,562
|
|
||
Less cash, cash equivalents and restricted cash of discontinued operations at June 30
|
477
|
|
3,732
|
|
||
Cash, cash equivalents and restricted cash of continuing operations at June 30
|
$
|
41,431
|
|
$
|
28,830
|
|
FINANCIAL STATEMENTS
|
|
|
STATEMENT OF CASH FLOWS (CONTINUED)
|
Six months ended June 30
|
||||||||||||
(UNAUDITED)
|
GE(a)
|
|
GE Capital
|
||||||||||
(In millions)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
Net earnings (loss)
|
$
|
3,865
|
|
$
|
3,522
|
|
|
$
|
(1,417
|
)
|
$
|
547
|
|
(Earnings) loss from discontinued operations
|
171
|
|
(2,881
|
)
|
|
147
|
|
(273
|
)
|
||||
Adjustments to reconcile net earnings (loss)
|
|
|
|
|
|
||||||||
to cash provided from operating activities
|
|
|
|
|
|
||||||||
Depreciation and amortization of property, plant and equipment (Note 7)
|
916
|
|
961
|
|
|
1,373
|
|
1,002
|
|
||||
Amortization of intangible assets (Note 8)
|
611
|
|
693
|
|
|
37
|
|
31
|
|
||||
Goodwill impairments (Note 8)
|
877
|
|
744
|
|
|
839
|
|
—
|
|
||||
(Earnings) loss from continuing operations retained by GE Capital
|
1,506
|
|
(46
|
)
|
|
—
|
|
—
|
|
||||
(Gains) losses on purchases and sales of business interests (Note 22)
|
(12,424
|
)
|
(214
|
)
|
|
(58
|
)
|
—
|
|
||||
(Gains) losses on equity securities (Note 22)
|
3,986
|
|
57
|
|
|
46
|
|
(3
|
)
|
||||
Principal pension plans cost (Note 13)
|
1,798
|
|
1,693
|
|
|
—
|
|
—
|
|
||||
Principal pension plans employer contributions
|
(144
|
)
|
(133
|
)
|
|
—
|
|
—
|
|
||||
Other postretirement benefit plans (net)
|
(471
|
)
|
(541
|
)
|
|
(17
|
)
|
(1
|
)
|
||||
Provision (benefit) for income taxes
|
121
|
|
97
|
|
|
(257
|
)
|
(139
|
)
|
||||
Cash recovered (paid) during the year for income taxes
|
(550
|
)
|
(970
|
)
|
|
(72
|
)
|
(97
|
)
|
||||
Decrease (increase) in contract and other deferred assets
|
501
|
|
(548
|
)
|
|
—
|
|
—
|
|
||||
Decrease (increase) in GE current receivables
|
434
|
|
(1,246
|
)
|
|
—
|
|
—
|
|
||||
Decrease (increase) in inventories
|
(692
|
)
|
(1,822
|
)
|
|
—
|
|
—
|
|
||||
Increase (decrease) in accounts payable
|
(3,462
|
)
|
355
|
|
|
4
|
|
(1
|
)
|
||||
Increase (decrease) in GE progress collections
|
(693
|
)
|
61
|
|
|
—
|
|
—
|
|
||||
All other operating activities
|
386
|
|
(849
|
)
|
|
340
|
|
214
|
|
||||
Cash from (used for) operating activities – continuing operations
|
(3,266
|
)
|
(1,068
|
)
|
|
967
|
|
1,279
|
|
||||
Cash from (used for) operating activities – discontinued operations
|
26
|
|
38
|
|
|
(79
|
)
|
(1,702
|
)
|
||||
Cash from (used for) operating activities
|
(3,240
|
)
|
(1,029
|
)
|
|
889
|
|
(423
|
)
|
||||
|
|
|
|
|
|
||||||||
Additions to property, plant and equipment
|
(1,002
|
)
|
(1,116
|
)
|
|
(655
|
)
|
(1,984
|
)
|
||||
Dispositions of property, plant and equipment
|
105
|
|
271
|
|
|
954
|
|
1,645
|
|
||||
Additions to internal-use software
|
(95
|
)
|
(137
|
)
|
|
(3
|
)
|
(4
|
)
|
||||
Net decrease (increase) in financing receivables
|
—
|
|
—
|
|
|
45
|
|
2,067
|
|
||||
Proceeds from sale of discontinued operations
|
—
|
|
2,827
|
|
|
—
|
|
—
|
|
||||
Proceeds from principal business dispositions
|
20,480
|
|
1,017
|
|
|
34
|
|
417
|
|
||||
Net cash from (payments for) principal businesses purchased
|
(7
|
)
|
(417
|
)
|
|
—
|
|
—
|
|
||||
Capital contribution from GE to GE Capital
|
—
|
|
(1,500
|
)
|
|
—
|
|
—
|
|
||||
Sales of retained ownership interests in Wabtec
|
—
|
|
1,799
|
|
|
—
|
|
—
|
|
||||
All other investing activities
|
207
|
|
(111
|
)
|
|
7,143
|
|
(1,280
|
)
|
||||
Cash from (used for) investing activities – continuing operations
|
19,689
|
|
2,634
|
|
|
7,518
|
|
861
|
|
||||
Cash from (used for) investing activities – discontinued operations
|
(30
|
)
|
(322
|
)
|
|
(60
|
)
|
1,764
|
|
||||
Cash from (used for) investing activities
|
19,659
|
|
2,312
|
|
|
7,458
|
|
2,625
|
|
||||
|
|
|
|
|
|
||||||||
Net increase (decrease) in borrowings (maturities of 90 days or less)
|
(3,512
|
)
|
(1,101
|
)
|
|
(205
|
)
|
(656
|
)
|
||||
Newly issued debt (maturities longer than 90 days)
|
7,431
|
|
409
|
|
|
6,797
|
|
1,053
|
|
||||
Repayments and other debt reductions (maturities longer than 90 days)
|
(12,113
|
)
|
(329
|
)
|
|
(17,392
|
)
|
(5,840
|
)
|
||||
Capital contribution from GE to GE Capital
|
—
|
|
—
|
|
|
—
|
|
1,500
|
|
||||
Dividends paid to shareholders
|
(176
|
)
|
(175
|
)
|
|
(232
|
)
|
(225
|
)
|
||||
All other financing activities
|
(83
|
)
|
(79
|
)
|
|
(231
|
)
|
(561
|
)
|
||||
Cash from (used for) financing activities – continuing operations
|
(8,453
|
)
|
(1,275
|
)
|
|
(11,264
|
)
|
(4,728
|
)
|
||||
Cash from (used for) financing activities – discontinued operations
|
1
|
|
(468
|
)
|
|
—
|
|
(1
|
)
|
||||
Cash from (used for) financing activities
|
(8,453
|
)
|
(1,743
|
)
|
|
(11,264
|
)
|
(4,729
|
)
|
||||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash
|
(155
|
)
|
(8
|
)
|
|
(62
|
)
|
9
|
|
||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
7,811
|
|
(468
|
)
|
|
(2,979
|
)
|
(2,518
|
)
|
||||
Cash, cash equivalents and restricted cash at beginning of year
|
17,617
|
|
20,528
|
|
|
19,460
|
|
15,020
|
|
||||
Cash, cash equivalents and restricted cash at June 30
|
25,428
|
|
20,060
|
|
|
16,480
|
|
12,502
|
|
||||
Less cash, cash equivalents and restricted cash of discontinued operations
at June 30 |
—
|
|
3,143
|
|
|
477
|
|
590
|
|
||||
Cash, cash equivalents and restricted cash of continuing operations
at June 30 |
$
|
25,428
|
|
$
|
16,917
|
|
|
$
|
16,003
|
|
$
|
11,913
|
|
FINANCIAL STATEMENTS
|
|
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||
(In millions, net of tax)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
Net earnings (loss)
|
$
|
(2,132
|
)
|
$
|
104
|
|
|
$
|
4,101
|
|
$
|
3,749
|
|
Less net earnings (loss) attributable to noncontrolling interests
|
(145
|
)
|
(23
|
)
|
|
(111
|
)
|
34
|
|
||||
Net earnings (loss) attributable to the Company
|
$
|
(1,987
|
)
|
$
|
127
|
|
|
$
|
4,212
|
|
$
|
3,716
|
|
|
|
|
|
|
|
||||||||
Investment securities
|
$
|
27
|
|
$
|
76
|
|
|
$
|
(14
|
)
|
$
|
99
|
|
Currency translation adjustments
|
(57
|
)
|
(141
|
)
|
|
78
|
|
283
|
|
||||
Cash flow hedges
|
53
|
|
(25
|
)
|
|
(158
|
)
|
12
|
|
||||
Benefit plans
|
604
|
|
639
|
|
|
1,640
|
|
1,183
|
|
||||
Other comprehensive income (loss)
|
627
|
|
547
|
|
|
1,545
|
|
1,577
|
|
||||
Less: other comprehensive income (loss) attributable to noncontrolling interests
|
2
|
|
(85
|
)
|
|
7
|
|
15
|
|
||||
Other comprehensive income (loss) attributable to the Company
|
$
|
625
|
|
$
|
633
|
|
|
$
|
1,539
|
|
$
|
1,562
|
|
|
|
|
|
|
|
||||||||
Comprehensive income (loss)
|
$
|
(1,505
|
)
|
$
|
651
|
|
|
$
|
5,647
|
|
$
|
5,326
|
|
Less: comprehensive income (loss) attributable to noncontrolling interests
|
(143
|
)
|
(109
|
)
|
|
(104
|
)
|
49
|
|
||||
Comprehensive income (loss) attributable to the Company
|
$
|
(1,362
|
)
|
$
|
760
|
|
|
$
|
5,751
|
|
$
|
5,277
|
|
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)
|
Three months ended June 30
|
Six months ended June 30
|
||||||||||||
(In millions)
|
2020
|
|
|
2019
|
|
2020
|
|
|
2019
|
|
||||
Preferred stock issued
|
$
|
6
|
|
|
$
|
6
|
|
$
|
6
|
|
|
$
|
6
|
|
Common stock issued
|
$
|
702
|
|
|
$
|
702
|
|
$
|
702
|
|
|
$
|
702
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
(10,819
|
)
|
|
(13,485
|
)
|
(11,732
|
)
|
|
(14,414
|
)
|
||||
Investment securities
|
27
|
|
|
75
|
|
(14
|
)
|
|
98
|
|
||||
Currency translation adjustments
|
(58
|
)
|
|
(64
|
)
|
75
|
|
|
260
|
|
||||
Cash flow hedges
|
53
|
|
|
(23
|
)
|
(158
|
)
|
|
12
|
|
||||
Benefit plans
|
604
|
|
|
645
|
|
1,636
|
|
|
1,192
|
|
||||
Accumulated other comprehensive income (loss) ending balance
|
$
|
(10,194
|
)
|
|
$
|
(12,852
|
)
|
$
|
(10,194
|
)
|
|
$
|
(12,852
|
)
|
Beginning balance
|
34,296
|
|
|
34,345
|
|
34,405
|
|
|
35,504
|
|
||||
Gains (losses) on treasury stock dispositions
|
(163
|
)
|
|
(150
|
)
|
(412
|
)
|
|
(657
|
)
|
||||
Stock-based compensation
|
111
|
|
|
124
|
|
216
|
|
|
264
|
|
||||
Other changes
|
48
|
|
|
6
|
|
83
|
|
|
(786
|
)
|
||||
Other capital ending balance
|
$
|
34,292
|
|
|
$
|
34,324
|
|
$
|
34,292
|
|
|
$
|
34,324
|
|
Beginning balance
|
93,615
|
|
|
96,921
|
|
87,732
|
|
|
93,109
|
|
||||
Net earnings (loss) attributable to the Company
|
(1,987
|
)
|
|
127
|
|
4,212
|
|
|
3,716
|
|
||||
Dividends and other transactions with shareholders
|
(439
|
)
|
|
(274
|
)
|
(581
|
)
|
|
(419
|
)
|
||||
Changes in accounting (Note 1)
|
—
|
|
|
—
|
|
(175
|
)
|
|
368
|
|
||||
Retained earnings ending balance
|
$
|
91,188
|
|
|
$
|
96,773
|
|
$
|
91,188
|
|
|
$
|
96,773
|
|
Beginning balance
|
(82,516
|
)
|
|
(83,328
|
)
|
(82,797
|
)
|
|
(83,925
|
)
|
||||
Purchases
|
(8
|
)
|
|
(7
|
)
|
(22
|
)
|
|
(45
|
)
|
||||
Dispositions
|
204
|
|
|
198
|
|
498
|
|
|
834
|
|
||||
Common stock held in treasury ending balance
|
$
|
(82,320
|
)
|
|
$
|
(83,137
|
)
|
$
|
(82,320
|
)
|
|
$
|
(83,137
|
)
|
GE shareholders' equity balance
|
33,674
|
|
|
35,816
|
|
33,674
|
|
|
35,816
|
|
||||
Noncontrolling interests balance (Note 15)
|
1,579
|
|
|
20,312
|
|
1,579
|
|
|
20,312
|
|
||||
Total equity balance at June 30(a)
|
$
|
35,254
|
|
|
$
|
56,129
|
|
$
|
35,254
|
|
|
$
|
56,129
|
|
(a)
|
Total equity balance decreased by $(20,875) million in the last twelve months from June 30, 2019, primarily due to reduction of non-controlling interest balance of $(19,095) million attributable to Baker Hughes Class A shareholders at June 30, 2019, after-tax loss of $(8,238) million in discontinued operations due to deconsolidation of Baker Hughes in the third quarter of 2019, after-tax change in unrealized loss on our remaining interest in Baker Hughes $(3,080) million, partially offset by after-tax gain of $11,199 million due to the sale of our BioPharma business within our Healthcare segment. See Notes 2 and 3 for further information.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
RESULTS OF DISCONTINUED OPERATIONS
(In millions)
|
Baker Hughes
|
|
Transportation
|
|
GE Capital
|
|
Total
|
||||||||||||||||||||
Three months ended June 30
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||||||
Operations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sales of goods and services
|
$
|
—
|
|
$
|
5,953
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
5,953
|
|
GE Capital revenues from services
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
71
|
|
(48
|
)
|
|
71
|
|
(48
|
)
|
||||||||
Cost of goods and services sold
|
—
|
|
(4,954
|
)
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
(4,954
|
)
|
||||||||
Other income, costs and expenses
|
(3
|
)
|
(981
|
)
|
|
1
|
|
3
|
|
|
(62
|
)
|
(16
|
)
|
|
(64
|
)
|
(993
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Earnings (loss) of discontinued operations before
income taxes
|
(3
|
)
|
18
|
|
|
1
|
|
3
|
|
|
10
|
|
(64
|
)
|
|
8
|
|
(42
|
)
|
||||||||
Benefit (provision) for income taxes
|
2
|
|
(33
|
)
|
|
—
|
|
(7
|
)
|
|
8
|
|
302
|
|
|
9
|
|
261
|
|
||||||||
Earnings (loss) of discontinued operations,
net of taxes(a)
|
$
|
(1
|
)
|
$
|
(15
|
)
|
|
$
|
1
|
|
$
|
(4
|
)
|
|
$
|
17
|
|
$
|
238
|
|
|
$
|
17
|
|
$
|
219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Disposal
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gain (loss) on disposal before income taxes
|
(10
|
)
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
(10
|
)
|
—
|
|
||||||||
Benefit (provision) for income taxes
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Gain (loss) on disposal, net of taxes
|
$
|
(10
|
)
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
(1
|
)
|
|
$
|
(10
|
)
|
$
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Earnings (loss) from discontinued operations,
net of taxes
|
$
|
(11
|
)
|
$
|
(15
|
)
|
|
$
|
1
|
|
$
|
(4
|
)
|
|
$
|
17
|
|
$
|
238
|
|
|
$
|
7
|
|
$
|
219
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
(In millions)
|
Baker Hughes
|
|
Transportation
|
|
GE Capital
|
|
Total
|
||||||||||||||||||||
Six months ended June 30
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||||||
Operations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sales of goods and services
|
$
|
—
|
|
$
|
11,569
|
|
|
$
|
—
|
|
$
|
549
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
12,118
|
|
GE Capital revenues from services
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
(5
|
)
|
(9
|
)
|
|
(5
|
)
|
(9
|
)
|
||||||||
Cost of goods and services sold
|
—
|
|
(9,631
|
)
|
|
—
|
|
(478
|
)
|
|
—
|
|
—
|
|
|
—
|
|
(10,109
|
)
|
||||||||
Other income, costs and expenses
|
(3
|
)
|
(1,768
|
)
|
|
(3
|
)
|
(6
|
)
|
|
(146
|
)
|
(89
|
)
|
|
(152
|
)
|
(1,863
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Earnings (loss) of discontinued operations before
income taxes
|
(3
|
)
|
170
|
|
|
(3
|
)
|
65
|
|
|
(151
|
)
|
(98
|
)
|
|
$
|
(157
|
)
|
$
|
137
|
|
||||||
Benefit (provision) for income taxes
|
(11
|
)
|
(116
|
)
|
|
6
|
|
(19
|
)
|
|
4
|
|
327
|
|
|
—
|
|
192
|
|
||||||||
Earnings (loss) of discontinued operations,
net of taxes(a)
|
$
|
(14
|
)
|
$
|
55
|
|
|
$
|
4
|
|
$
|
46
|
|
|
$
|
(147
|
)
|
$
|
228
|
|
|
$
|
(157
|
)
|
$
|
329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Disposal
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Gain (loss) on disposal before income taxes
|
(13
|
)
|
—
|
|
|
—
|
|
3,471
|
|
|
—
|
|
47
|
|
|
$
|
(13
|
)
|
$
|
3,517
|
|
||||||
Benefit (provision) for income taxes
|
—
|
|
—
|
|
|
—
|
|
(963
|
)
|
|
—
|
|
(2
|
)
|
|
—
|
|
(964
|
)
|
||||||||
Gain (loss) on disposal, net of taxes
|
$
|
(13
|
)
|
$
|
—
|
|
|
$
|
—
|
|
$
|
2,508
|
|
|
$
|
—
|
|
$
|
45
|
|
|
$
|
(13
|
)
|
$
|
2,553
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Earnings (loss) from discontinued operations,
net of taxes
|
$
|
(27
|
)
|
$
|
55
|
|
|
$
|
4
|
|
$
|
2,554
|
|
|
$
|
(147
|
)
|
$
|
273
|
|
|
$
|
(171
|
)
|
$
|
2,881
|
|
ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS (In millions)
|
June 30, 2020
|
|
December 31, 2019
|
|
||
Cash, cash equivalents and restricted cash
|
$
|
477
|
|
$
|
638
|
|
Investment securities
|
91
|
|
202
|
|
||
Current receivables
|
61
|
|
81
|
|
||
Financing receivables held for sale (Polish mortgage portfolio)
|
2,398
|
|
2,485
|
|
||
Property, plant, and equipment
|
112
|
|
123
|
|
||
Deferred income taxes
|
213
|
|
264
|
|
||
All other assets
|
265
|
|
317
|
|
||
Assets of discontinued operations(a)
|
$
|
3,617
|
|
$
|
4,109
|
|
|
|
|
||||
Accounts payable & Progress collections and deferred income
|
$
|
15
|
|
$
|
40
|
|
All other liabilities(b)
|
220
|
|
163
|
|
||
Liabilities of discontinued operations(a)
|
$
|
235
|
|
$
|
203
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||||||||||||||||||
(In millions)
|
Amortized
cost |
|
Gross
unrealized gains |
|
Gross
unrealized losses |
|
Estimated
fair value |
|
|
Amortized
cost |
|
Gross
unrealized gains |
|
Gross
unrealized losses |
|
Estimated
fair value |
|
||||||||
Debt
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. corporate
|
$
|
23,540
|
|
$
|
5,771
|
|
$
|
(136
|
)
|
$
|
29,175
|
|
|
$
|
23,037
|
|
$
|
4,636
|
|
$
|
(11
|
)
|
$
|
27,661
|
|
Non-U.S. corporate
|
2,185
|
|
337
|
|
(5
|
)
|
2,517
|
|
|
2,161
|
|
260
|
|
(1
|
)
|
2,420
|
|
||||||||
State and municipal
|
3,235
|
|
826
|
|
(22
|
)
|
4,039
|
|
|
3,086
|
|
598
|
|
(15
|
)
|
3,669
|
|
||||||||
Mortgage and asset-backed
|
3,497
|
|
97
|
|
(136
|
)
|
3,458
|
|
|
3,117
|
|
116
|
|
(4
|
)
|
3,229
|
|
||||||||
Government and agencies
|
1,257
|
|
206
|
|
—
|
|
1,463
|
|
|
1,391
|
|
126
|
|
—
|
|
1,516
|
|
||||||||
Equity
|
6,465
|
|
—
|
|
—
|
|
6,465
|
|
|
10,025
|
|
—
|
|
—
|
|
10,025
|
|
||||||||
Total
|
$
|
40,179
|
|
$
|
7,237
|
|
$
|
(300
|
)
|
$
|
47,117
|
|
|
$
|
42,816
|
|
$
|
5,736
|
|
$
|
(31
|
)
|
$
|
48,521
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
(In millions)
|
Amortized
cost
|
|
Estimated
fair value
|
|
||
|
|
|
||||
Within one year
|
$
|
643
|
|
$
|
657
|
|
After one year through five years
|
2,483
|
|
2,676
|
|
||
After five years through ten years
|
6,516
|
|
7,599
|
|
||
After ten years
|
20,575
|
|
26,261
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
CURRENT RECEIVABLES
|
Consolidated
|
|
GE
|
||||||||||
(In millions)
|
June 30, 2020
|
|
December 31, 2019
|
|
|
June 30, 2020
|
|
December 31, 2019
|
|
||||
Customer receivables(a)
|
$
|
12,361
|
|
$
|
12,594
|
|
|
$
|
8,879
|
|
$
|
9,507
|
|
Sundry receivables(b)(c)
|
4,840
|
|
5,049
|
|
|
5,021
|
|
5,247
|
|
||||
Allowance for credit losses(d)
|
(1,160
|
)
|
(874
|
)
|
|
(1,157
|
)
|
(872
|
)
|
||||
Total current receivables
|
$
|
16,041
|
|
$
|
16,769
|
|
|
$
|
12,744
|
|
$
|
13,883
|
|
(In millions)
|
2020
|
|
2019
|
||||||||||||
|
GE Capital
|
|
|
Third Parties
|
|
GE Capital
|
|
|
Third Parties
|
||||||
Balance at January 1
|
$
|
3,087
|
|
|
$
|
6,757
|
|
|
$
|
4,386
|
|
|
$
|
7,880
|
|
GE sales to GE Capital
|
16,964
|
|
|
—
|
|
|
20,009
|
|
|
—
|
|
||||
GE sales to third parties
|
|
|
|
773
|
|
|
—
|
|
|
2,760
|
|
||||
GE Capital sales to third parties
|
(9,931
|
)
|
|
9,931
|
|
|
(13,836
|
)
|
|
13,836
|
|
||||
Collections and other
|
(6,807
|
)
|
|
(13,565
|
)
|
|
(7,140
|
)
|
|
(17,644
|
)
|
||||
Reclassification from long-term customer receivables
|
170
|
|
|
—
|
|
|
209
|
|
|
—
|
|
||||
Balance at June 30
|
$
|
3,482
|
|
(a)
|
$
|
3,897
|
|
|
$
|
3,627
|
|
(a)
|
$
|
6,831
|
|
LONG-TERM RECEIVABLES
|
Consolidated
|
|
GE
|
||||||||||
(In millions)
|
June 30, 2020
|
|
December 31, 2019
|
|
|
June 30, 2020
|
|
December 31, 2019
|
|
||||
Long-term customer receivables(a)
|
$
|
688
|
|
$
|
906
|
|
|
$
|
465
|
|
$
|
506
|
|
Long-term sundry receivables(b)
|
1,399
|
|
1,504
|
|
|
1,792
|
|
1,834
|
|
||||
Allowance for credit losses
|
(127
|
)
|
(128
|
)
|
|
(127
|
)
|
(128
|
)
|
||||
Total long-term receivables
|
$
|
1,960
|
|
$
|
2,282
|
|
|
$
|
2,130
|
|
$
|
2,212
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
Six months ended June 30 (In millions)
|
2020
|
|
|
2019
|
|
||
Customer receivables sold to receivables facilities
|
$
|
7,679
|
|
|
$
|
10,786
|
|
Total cash purchase price for customer receivables
|
7,240
|
|
|
10,497
|
|
||
Cash collections re-invested to purchase customer receivables
|
6,453
|
|
|
8,830
|
|
||
|
|
|
|
||||
Non-cash increases to deferred purchase price
|
$
|
390
|
|
|
$
|
137
|
|
Cash payments received on deferred purchase price
|
274
|
|
|
220
|
|
|
Consolidated
|
|
GE Capital
|
||||||||||
(In millions)
|
June 30, 2020
|
|
December 31, 2019
|
|
|
June 30, 2020
|
|
December 31, 2019
|
|
||||
Loans, net of deferred income
|
$
|
1,212
|
|
$
|
1,098
|
|
|
$
|
5,049
|
|
$
|
4,927
|
|
Investment in financing leases, net of deferred income
|
1,955
|
|
2,070
|
|
|
1,955
|
|
2,070
|
|
||||
|
3,167
|
|
3,168
|
|
|
7,004
|
|
6,996
|
|
||||
Allowance for losses
|
(72
|
)
|
(33
|
)
|
|
(45
|
)
|
(17
|
)
|
||||
Financing receivables – net
|
$
|
3,095
|
|
$
|
3,134
|
|
|
$
|
6,959
|
|
$
|
6,979
|
|
(In millions)
|
June 30, 2020
|
|
December 31, 2019
|
|
||
Raw materials and work in process
|
$
|
8,976
|
|
$
|
8,771
|
|
Finished goods
|
6,275
|
|
5,333
|
|
||
Total inventories
|
$
|
15,251
|
|
$
|
14,104
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
(In millions)
|
June 30, 2020
|
|
December 31, 2019
|
|
||
Original cost
|
$
|
76,137
|
|
$
|
75,187
|
|
Less accumulated depreciation and amortization
|
(33,317
|
)
|
(31,897
|
)
|
||
Property, plant and equipment – net
|
$
|
42,821
|
|
$
|
43,290
|
|
OPERATING LEASE EXPENSE
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||
(In millions)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
Long-term (fixed)
|
$
|
183
|
|
$
|
219
|
|
|
$
|
360
|
|
$
|
445
|
|
Long-term (variable)
|
24
|
|
27
|
|
|
45
|
|
71
|
|
||||
Short-term
|
54
|
|
43
|
|
|
123
|
|
90
|
|
||||
Total operating lease expense
|
$
|
261
|
|
$
|
289
|
|
|
$
|
528
|
|
$
|
606
|
|
GOODWILL (In millions)
|
January 1, 2020
|
|
Impairments
|
|
Currency exchange
and other |
|
Balance at
June 30, 2020 |
|
||||
Power
|
$
|
145
|
|
$
|
—
|
|
$
|
—
|
|
$
|
145
|
|
Renewable Energy
|
3,290
|
|
—
|
|
(67
|
)
|
3,223
|
|
||||
Aviation
|
9,859
|
|
(877
|
)
|
8
|
|
8,989
|
|
||||
Healthcare
|
11,728
|
|
—
|
|
(4
|
)
|
11,723
|
|
||||
Capital
|
839
|
|
(839
|
)
|
—
|
|
—
|
|
||||
Corporate
|
873
|
|
—
|
|
(3
|
)
|
871
|
|
||||
Total
|
$
|
26,734
|
|
$
|
(1,717
|
)
|
$
|
(66
|
)
|
$
|
24,951
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
OTHER INTANGIBLE ASSETS - NET (In millions)
|
June 30, 2020
|
|
December 31, 2019
|
|
||
Intangible assets subject to amortization
|
$
|
10,168
|
|
$
|
10,653
|
|
EQUIPMENT & SERVICES REVENUES
|
|
||||||||||||||||||
Three months ended June 30 (In millions)
|
2020
|
|
2019
|
||||||||||||||||
|
Equipment
|
Services
|
Total
|
|
Equipment
|
Services
|
Total
|
||||||||||||
Power
|
$
|
1,488
|
|
$
|
2,669
|
|
$
|
4,156
|
|
|
$
|
1,463
|
|
$
|
3,218
|
|
$
|
4,681
|
|
Renewable Energy
|
2,722
|
|
783
|
|
3,505
|
|
|
2,867
|
|
760
|
|
3,627
|
|
||||||
Aviation
|
2,031
|
|
2,352
|
|
4,384
|
|
|
3,033
|
|
4,844
|
|
7,877
|
|
||||||
Healthcare
|
2,050
|
|
1,843
|
|
3,893
|
|
|
2,838
|
|
2,095
|
|
4,934
|
|
||||||
Corporate items and industrial eliminations
|
9
|
|
120
|
|
129
|
|
|
69
|
|
229
|
|
298
|
|
||||||
Total GE Industrial revenues
|
$
|
8,299
|
|
$
|
7,767
|
|
$
|
16,066
|
|
|
$
|
10,269
|
|
$
|
11,147
|
|
$
|
21,416
|
|
Six months ended June 30 (In millions)
|
2020
|
|
2019
|
||||||||||||||||
|
Equipment
|
Services
|
Total
|
|
Equipment
|
Services
|
Total
|
||||||||||||
Power
|
$
|
2,994
|
|
$
|
5,187
|
|
$
|
8,181
|
|
|
$
|
3,039
|
|
$
|
6,259
|
|
$
|
9,298
|
|
Renewable Energy
|
5,298
|
|
1,401
|
|
6,698
|
|
|
4,848
|
|
1,317
|
|
6,165
|
|
||||||
Aviation
|
4,475
|
|
6,801
|
|
11,276
|
|
|
6,146
|
|
9,685
|
|
15,831
|
|
||||||
Healthcare
|
4,749
|
|
3,872
|
|
8,620
|
|
|
5,492
|
|
4,125
|
|
9,616
|
|
||||||
Corporate items and industrial eliminations
|
(39
|
)
|
174
|
|
135
|
|
|
352
|
|
478
|
|
830
|
|
||||||
Total GE Industrial revenues
|
$
|
17,476
|
|
$
|
17,434
|
|
$
|
34,910
|
|
|
$
|
19,878
|
|
$
|
21,863
|
|
$
|
41,740
|
|
REVENUES
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
(In millions)
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Gas Power
|
$
|
3,077
|
|
|
$
|
3,246
|
|
|
$
|
5,936
|
|
|
$
|
6,510
|
|
Power Portfolio
|
1,079
|
|
|
1,434
|
|
|
2,244
|
|
|
2,788
|
|
||||
Power
|
$
|
4,156
|
|
|
$
|
4,681
|
|
|
$
|
8,181
|
|
|
$
|
9,298
|
|
|
|
|
|
|
|
|
|
||||||||
Onshore Wind
|
$
|
2,487
|
|
|
$
|
2,450
|
|
|
$
|
4,612
|
|
|
$
|
3,891
|
|
Grid Solutions equipment and services
|
812
|
|
|
935
|
|
|
1,652
|
|
|
1,852
|
|
||||
Hydro, Offshore Wind and other
|
205
|
|
|
242
|
|
|
435
|
|
|
422
|
|
||||
Renewable Energy
|
$
|
3,505
|
|
|
$
|
3,627
|
|
|
$
|
6,698
|
|
|
$
|
6,165
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial Engines & Services
|
$
|
2,232
|
|
|
$
|
5,848
|
|
|
$
|
7,009
|
|
|
$
|
11,797
|
|
Military
|
1,161
|
|
|
976
|
|
|
2,121
|
|
|
2,013
|
|
||||
Systems & Other
|
990
|
|
|
1,052
|
|
|
2,146
|
|
|
2,021
|
|
||||
Aviation
|
$
|
4,384
|
|
|
$
|
7,877
|
|
|
$
|
11,276
|
|
|
$
|
15,831
|
|
|
|
|
|
|
|
|
|
||||||||
Healthcare Systems
|
$
|
3,523
|
|
|
$
|
3,589
|
|
|
$
|
6,971
|
|
|
$
|
7,021
|
|
Pharmaceutical Diagnostics
|
370
|
|
|
517
|
|
|
820
|
|
|
1,003
|
|
||||
BioPharma
|
—
|
|
|
828
|
|
|
830
|
|
|
1,593
|
|
||||
Healthcare
|
$
|
3,893
|
|
|
$
|
4,934
|
|
|
$
|
8,620
|
|
|
$
|
9,616
|
|
|
|
|
|
|
|
|
|
||||||||
Corporate items and industrial eliminations
|
129
|
|
|
298
|
|
|
135
|
|
|
830
|
|
||||
Total GE Industrial revenues
|
$
|
16,066
|
|
|
$
|
21,416
|
|
|
$
|
34,910
|
|
|
$
|
41,740
|
|
Capital
|
1,845
|
|
|
2,321
|
|
|
3,768
|
|
|
4,548
|
|
||||
GE Capital-GE eliminations
|
$
|
(162
|
)
|
|
$
|
(323
|
)
|
|
$
|
(406
|
)
|
|
$
|
(672
|
)
|
Consolidated revenues
|
$
|
17,750
|
|
|
$
|
23,414
|
|
|
$
|
38,273
|
|
|
$
|
45,616
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
June 30, 2020 (In millions)
|
Power
|
Aviation
|
Renewable Energy
|
Healthcare
|
Other
|
Total
|
||||||||||||
Revenues in excess of billings
|
$
|
5,323
|
|
$
|
4,404
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
9,728
|
|
Billings in excess of revenues
|
(1,505
|
)
|
(3,910
|
)
|
—
|
|
—
|
|
—
|
|
(5,415
|
)
|
||||||
Long-term service agreements(a)
|
3,818
|
|
494
|
|
—
|
|
—
|
|
—
|
|
4,312
|
|
||||||
Short-term and other service agreements
|
152
|
|
343
|
|
41
|
|
187
|
|
37
|
|
759
|
|
||||||
Equipment contract revenues(b)
|
2,415
|
|
76
|
|
1,249
|
|
307
|
|
155
|
|
4,202
|
|
||||||
Total contract assets
|
6,385
|
|
913
|
|
1,290
|
|
494
|
|
192
|
|
9,273
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
Deferred inventory costs
|
933
|
|
475
|
|
982
|
|
339
|
|
—
|
|
2,730
|
|
||||||
Nonrecurring engineering costs
|
24
|
|
2,355
|
|
41
|
|
32
|
|
—
|
|
2,452
|
|
||||||
Customer advances and other(c)
|
—
|
|
1,132
|
|
—
|
|
—
|
|
(32
|
)
|
1,100
|
|
||||||
Contract and other deferred assets
|
$
|
7,342
|
|
$
|
4,875
|
|
$
|
2,313
|
|
$
|
865
|
|
$
|
160
|
|
$
|
15,555
|
|
December 31, 2019 (In millions)
|
|
|
|
|
|
|
||||||||||||
Revenues in excess of billings
|
$
|
5,342
|
|
$
|
4,996
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
10,338
|
|
Billings in excess of revenues
|
(1,561
|
)
|
(3,719
|
)
|
—
|
|
—
|
|
—
|
|
(5,280
|
)
|
||||||
Long-term service agreements(a)
|
3,781
|
|
1,278
|
|
—
|
|
—
|
|
—
|
|
5,058
|
|
||||||
Short-term and other service agreements
|
190
|
|
316
|
|
43
|
|
169
|
|
—
|
|
717
|
|
||||||
Equipment contract revenues(b)
|
2,508
|
|
82
|
|
1,217
|
|
324
|
|
106
|
|
4,236
|
|
||||||
Total contract assets
|
6,478
|
|
1,675
|
|
1,260
|
|
492
|
|
106
|
|
10,011
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deferred inventory costs
|
943
|
|
287
|
|
1,677
|
|
359
|
|
—
|
|
3,267
|
|
||||||
Nonrecurring engineering costs
|
44
|
|
2,257
|
|
47
|
|
35
|
|
8
|
|
2,391
|
|
||||||
Customer advances and other(c)
|
—
|
|
1,165
|
|
—
|
|
—
|
|
(32
|
)
|
1,133
|
|
||||||
Contract and other deferred assets
|
$
|
7,465
|
|
$
|
5,384
|
|
$
|
2,985
|
|
$
|
886
|
|
$
|
82
|
|
$
|
16,801
|
|
(a)
|
Included amounts due from customers at Aviation for the sales of engines, spare parts and services, which we will collect through higher usage-based fees from servicing equipment under long-term service agreements, totaling $1,791 million and $1,712 million as of June 30, 2020 and December 31, 2019, respectively. The corresponding discount is recorded within liabilities as Deferred income and amounted to $297 million and $308 million as of June 30, 2020 and December 31, 2019, respectively.
|
(b)
|
Included are amounts due from customers at Power for the sale of services upgrades, which we collect through incremental fixed or usage-based fees from servicing the equipment under long-term service agreements, totaling $862 million and $909 million as of June 30, 2020 and December 31, 2019, respectively.
|
(c)
|
Included advances to and amounts due from customers at Aviation for the sale of engines, spare parts and services, which we will collect through incremental fees for goods and services to be delivered in future periods, totaling $955 million and $986 million as of June 30, 2020 and December 31, 2019, respectively. The corresponding discount is recorded within liabilities as Deferred income and amounted to $262 million and $256 million as of June 30, 2020 and December 31, 2019, respectively.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
June 30, 2020 (In millions)
|
Power
|
Aviation
|
Renewable Energy
|
Healthcare
|
Other
|
Total
|
||||||||||||
Progress collections on equipment contracts
|
$
|
5,011
|
|
$
|
152
|
|
$
|
1,184
|
|
$
|
—
|
|
$
|
—
|
|
$
|
6,347
|
|
Other progress collections
|
431
|
|
5,324
|
|
3,716
|
|
343
|
|
171
|
|
9,985
|
|
||||||
Total progress collections
|
5,441
|
|
5,476
|
|
4,901
|
|
343
|
|
171
|
|
16,332
|
|
||||||
Deferred income(a)
|
48
|
|
1,569
|
|
329
|
|
1,691
|
|
121
|
|
3,759
|
|
||||||
GE Progress collections and deferred income
|
$
|
5,489
|
|
$
|
7,046
|
|
$
|
5,230
|
|
$
|
2,034
|
|
$
|
292
|
|
$
|
20,091
|
|
December 31, 2019 (In millions)
|
|
|
|
|
|
|
||||||||||||
Progress collections on equipment contracts
|
$
|
5,857
|
|
$
|
115
|
|
$
|
1,268
|
|
$
|
—
|
|
$
|
—
|
|
$
|
7,240
|
|
Other progress collections
|
413
|
|
4,748
|
|
4,193
|
|
305
|
|
189
|
|
9,849
|
|
||||||
Total progress collections
|
6,270
|
|
4,863
|
|
5,461
|
|
305
|
|
189
|
|
17,089
|
|
||||||
Deferred income(a)
|
49
|
|
1,528
|
|
284
|
|
1,647
|
|
98
|
|
3,606
|
|
||||||
GE Progress collections and deferred income
|
$
|
6,319
|
|
$
|
6,391
|
|
$
|
5,745
|
|
$
|
1,952
|
|
$
|
287
|
|
$
|
20,694
|
|
(a)
|
Included in this balance are finance discounts associated with customer advances at Aviation of $560 million and $564 million as of June 30, 2020 and December 31, 2019, respectively.
|
(In millions)
|
June 30, 2020
|
|
December 31, 2019
|
|
||
Commercial paper
|
$
|
505
|
|
$
|
3,008
|
|
Current portion of long-term borrowings
|
38
|
|
766
|
|
||
Current portion of long-term borrowings assumed by GE
|
3,679
|
|
5,473
|
|
||
Other
|
1,194
|
|
1,832
|
|
||
Total GE short-term borrowings
|
$
|
5,416
|
|
$
|
11,079
|
|
|
|
|
||||
Current portion of long-term borrowings
|
$
|
4,000
|
|
$
|
11,226
|
|
Intercompany payable to GE
|
3,237
|
|
2,104
|
|
||
Other
|
601
|
|
804
|
|
||
Total GE Capital short-term borrowings
|
$
|
7,837
|
|
$
|
14,134
|
|
|
|
|
||||
Eliminations
|
(4,195
|
)
|
(3,140
|
)
|
||
Total short-term borrowings
|
$
|
9,059
|
|
$
|
22,072
|
|
|
|
|
||||
Senior notes
|
$
|
18,387
|
|
$
|
14,762
|
|
Senior notes assumed by GE
|
20,046
|
|
23,024
|
|
||
Subordinated notes assumed by GE
|
1,673
|
|
2,871
|
|
||
Other
|
293
|
|
324
|
|
||
Total GE long-term borrowings
|
$
|
40,398
|
|
$
|
40,980
|
|
|
|
|
||||
Senior notes
|
$
|
31,253
|
|
$
|
25,371
|
|
Subordinated notes
|
188
|
|
178
|
|
||
Intercompany payable to GE
|
17,435
|
|
17,038
|
|
||
Other
|
584
|
|
626
|
|
||
Total GE Capital long-term borrowings
|
$
|
49,460
|
|
$
|
43,213
|
|
|
|
|
||||
Eliminations
|
(17,435
|
)
|
(17,038
|
)
|
||
Total long-term borrowings
|
$
|
72,423
|
|
$
|
67,155
|
|
Non-recourse borrowings of consolidated securitization entities
|
396
|
|
1,655
|
|
||
Total borrowings
|
$
|
81,878
|
|
$
|
90,882
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
June 30, 2020 (In millions)
|
Long-term care insurance contracts
|
Structured settlement annuities & life insurance contracts
|
Other
contracts |
Other adjustments(a)
|
Total
|
||||||||||
Future policy benefit reserves
|
$
|
16,794
|
|
$
|
9,385
|
|
$
|
179
|
|
$
|
6,873
|
|
$
|
33,231
|
|
Claim reserves
|
4,330
|
|
282
|
|
1,087
|
|
—
|
|
5,699
|
|
|||||
Investment contracts
|
—
|
|
1,085
|
|
1,044
|
|
—
|
|
2,129
|
|
|||||
Unearned premiums and other
|
27
|
|
187
|
|
143
|
|
—
|
|
357
|
|
|||||
|
21,151
|
|
10,939
|
|
2,453
|
|
6,873
|
|
41,416
|
|
|||||
Eliminations
|
—
|
|
—
|
|
(462
|
)
|
—
|
|
(462
|
)
|
|||||
Total
|
$
|
21,151
|
|
$
|
10,939
|
|
$
|
1,991
|
|
$
|
6,873
|
|
$
|
40,954
|
|
December 31, 2019 (In millions)
|
|
|
|
|
|
||||||||||
Future policy benefit reserves
|
$
|
16,755
|
|
$
|
9,511
|
|
$
|
183
|
|
$
|
5,655
|
|
$
|
32,104
|
|
Claim reserves
|
4,238
|
|
252
|
|
1,125
|
|
—
|
|
5,615
|
|
|||||
Investment contracts
|
—
|
|
1,136
|
|
1,055
|
|
—
|
|
2,191
|
|
|||||
Unearned premiums and other
|
30
|
|
196
|
|
96
|
|
—
|
|
322
|
|
|||||
|
21,023
|
|
11,095
|
|
2,459
|
|
5,655
|
|
40,232
|
|
|||||
Eliminations
|
—
|
|
—
|
|
(406
|
)
|
—
|
|
(406
|
)
|
|||||
Total
|
$
|
21,023
|
|
$
|
11,095
|
|
$
|
2,053
|
|
$
|
5,655
|
|
$
|
39,826
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
Principal pension plans
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||
(In millions)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
Service cost for benefits earned
|
$
|
192
|
|
$
|
160
|
|
|
$
|
345
|
|
$
|
318
|
|
Prior service cost amortization
|
37
|
|
34
|
|
|
74
|
|
67
|
|
||||
Expected return on plan assets
|
(748
|
)
|
(862
|
)
|
|
(1,496
|
)
|
(1,725
|
)
|
||||
Interest cost on benefit obligations
|
589
|
|
723
|
|
|
1,176
|
|
1,449
|
|
||||
Net actuarial loss amortization
|
851
|
|
770
|
|
|
1,699
|
|
1,533
|
|
||||
Curtailment/settlement loss (gain)
|
—
|
|
—
|
|
|
—
|
|
51
|
|
||||
Benefit plans cost
|
$
|
921
|
|
$
|
825
|
|
|
$
|
1,798
|
|
$
|
1,693
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||
(In millions)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
Beginning balance
|
$
|
20
|
|
$
|
(16
|
)
|
|
$
|
61
|
|
$
|
(39
|
)
|
AOCI before reclasses – net of taxes of $8, $(23), $7 and $15(a)
|
34
|
|
94
|
|
|
41
|
|
121
|
|
||||
Reclasses from AOCI – net of taxes of $(2), $(5), $(14) and $(6)
|
(7
|
)
|
(18
|
)
|
|
(55
|
)
|
(22
|
)
|
||||
AOCI
|
27
|
|
76
|
|
|
(14
|
)
|
99
|
|
||||
Less AOCI attributable to noncontrolling interests
|
—
|
|
—
|
|
|
—
|
|
1
|
|
||||
Investment securities AOCI ending balance
|
$
|
47
|
|
$
|
60
|
|
|
$
|
47
|
|
$
|
60
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
(4,685
|
)
|
$
|
(5,810
|
)
|
|
$
|
(4,818
|
)
|
$
|
(6,134
|
)
|
AOCI before reclasses – net of taxes of $25, $13, $20 and $39
|
(58
|
)
|
(308
|
)
|
|
(613
|
)
|
(1
|
)
|
||||
Reclasses from AOCI – net of taxes of $0, $0, $0 and $(4)(b)
|
1
|
|
167
|
|
|
691
|
|
284
|
|
||||
AOCI
|
(57
|
)
|
(141
|
)
|
|
78
|
|
283
|
|
||||
Less AOCI attributable to noncontrolling interests
|
1
|
|
(77
|
)
|
|
3
|
|
22
|
|
||||
Currency translation adjustments AOCI ending balance
|
$
|
(4,743
|
)
|
$
|
(5,874
|
)
|
|
$
|
(4,743
|
)
|
$
|
(5,874
|
)
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
(163
|
)
|
$
|
49
|
|
|
$
|
49
|
|
$
|
13
|
|
AOCI before reclasses – net of taxes of $(24), $(8), $(69) and $3
|
40
|
|
(50
|
)
|
|
(222
|
)
|
(16
|
)
|
||||
Reclasses from AOCI – net of taxes of $(1), $4, $8 and $1(b)
|
13
|
|
25
|
|
|
64
|
|
28
|
|
||||
AOCI
|
53
|
|
(25
|
)
|
|
(158
|
)
|
12
|
|
||||
Less AOCI attributable to noncontrolling interests
|
—
|
|
(1
|
)
|
|
—
|
|
1
|
|
||||
Cash flow hedges AOCI ending balance
|
$
|
(109
|
)
|
$
|
26
|
|
|
$
|
(109
|
)
|
$
|
26
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
(5,991
|
)
|
$
|
(7,708
|
)
|
|
$
|
(7,024
|
)
|
$
|
(8,254
|
)
|
AOCI before reclasses – net of taxes of $(2), $13, $28 and $(35)
|
(74
|
)
|
7
|
|
|
145
|
|
(111
|
)
|
||||
Reclasses from AOCI – net of taxes of $187, $164, $426 and $347(b)
|
678
|
|
632
|
|
|
1,495
|
|
1,294
|
|
||||
AOCI
|
604
|
|
639
|
|
|
1,640
|
|
1,183
|
|
||||
Less AOCI attributable to noncontrolling interests
|
—
|
|
(6
|
)
|
|
3
|
|
(8
|
)
|
||||
Benefit plans AOCI ending balance
|
$
|
(5,387
|
)
|
$
|
(7,063
|
)
|
|
$
|
(5,387
|
)
|
$
|
(7,063
|
)
|
|
|
|
|
|
|
||||||||
AOCI at June 30
|
$
|
(10,194
|
)
|
$
|
(12,852
|
)
|
|
$
|
(10,194
|
)
|
$
|
(12,852
|
)
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
Three months ended June 30
|
2020
|
|
2019
|
||||||||||
(Earnings for per-share calculation, in millions; per-share amounts in dollars)
|
Diluted
|
|
Basic
|
|
|
Diluted
|
|
Basic
|
|
||||
Earnings from continuing operations
|
$
|
(1,995
|
)
|
$
|
(1,995
|
)
|
|
$
|
(114
|
)
|
$
|
(114
|
)
|
Preferred stock dividends
|
(192
|
)
|
(192
|
)
|
|
(188
|
)
|
(188
|
)
|
||||
Accretion of redeemable noncontrolling interests, net of tax(a)
|
(135
|
)
|
(135
|
)
|
|
—
|
|
—
|
|
||||
Earnings from continuing operations attributable to common shareholders
|
(2,322
|
)
|
(2,322
|
)
|
|
(302
|
)
|
(302
|
)
|
||||
Earnings (loss) from discontinued operations
|
7
|
|
7
|
|
|
241
|
|
241
|
|
||||
Net earnings (loss) attributable to GE common shareholders
|
$
|
(2,314
|
)
|
$
|
(2,314
|
)
|
|
$
|
(61
|
)
|
$
|
(61
|
)
|
|
|
|
|
|
|
||||||||
Shares of GE common stock outstanding
|
8,750
|
|
8,750
|
|
|
8,724
|
|
8,724
|
|
||||
Employee compensation-related shares (including stock options)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Total average equivalent shares
|
8,750
|
|
8,750
|
|
|
8,724
|
|
8,724
|
|
||||
|
|
|
|
|
|
||||||||
Earnings per share from continuing operations
|
$
|
(0.27
|
)
|
$
|
(0.27
|
)
|
|
$
|
(0.03
|
)
|
$
|
(0.03
|
)
|
Earnings (loss) per share from discontinued operations
|
—
|
|
—
|
|
|
0.03
|
|
0.03
|
|
||||
Net earnings (loss) per share
|
(0.26
|
)
|
(0.26
|
)
|
|
(0.01
|
)
|
(0.01
|
)
|
||||
|
|
|
|
|
|
||||||||
Potentially dilutive securities(b)
|
459
|
|
|
|
486
|
|
|
|
|
|
|
|
|
||||||||
Six months ended June 30
|
2020
|
|
2019
|
||||||||||
(Earnings for per-share calculation; in millions; per-share amounts in dollars)
|
Diluted
|
|
Basic
|
|
|
Diluted
|
|
Basic
|
|
||||
Earnings from continuing operations
|
$
|
4,370
|
|
$
|
4,370
|
|
|
$
|
828
|
|
$
|
843
|
|
Preferred stock dividends
|
(235
|
)
|
(235
|
)
|
|
(228
|
)
|
(228
|
)
|
||||
Accretion of redeemable noncontrolling interests, net of tax(a)
|
$
|
(135
|
)
|
$
|
(135
|
)
|
|
—
|
|
—
|
|
||
Earnings from continuing operations attributable to common shareholders
|
$
|
4,000
|
|
$
|
4,000
|
|
|
$
|
600
|
|
$
|
616
|
|
Earnings (loss) from discontinued operations
|
(168
|
)
|
(168
|
)
|
|
2,845
|
|
2,861
|
|
||||
Net earnings attributable to GE common shareholders
|
$
|
3,832
|
|
$
|
3,832
|
|
|
$
|
3,461
|
|
$
|
3,476
|
|
|
|
|
|
|
|
||||||||
Shares of GE common stock outstanding
|
8,746
|
|
8,746
|
|
|
8,716
|
|
8,716
|
|
||||
Employee compensation-related shares (including stock options)
|
6
|
|
—
|
|
|
13
|
|
—
|
|
||||
Total average equivalent shares
|
8,752
|
|
8,746
|
|
|
8,730
|
|
8,716
|
|
||||
|
|
|
|
|
|
||||||||
Earnings from continuing operations
|
$
|
0.46
|
|
$
|
0.46
|
|
|
$
|
0.07
|
|
$
|
0.07
|
|
Loss from discontinued operations
|
(0.02
|
)
|
(0.02
|
)
|
|
0.33
|
|
0.33
|
|
||||
Net earnings
|
0.44
|
|
0.44
|
|
|
0.40
|
|
0.40
|
|
||||
|
|
|
|
|
|
||||||||
Potentially dilutive securities(b)
|
440
|
|
|
|
468
|
|
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||||||
(In millions)
|
Carrying
amount (net) |
|
Estimated
fair value |
|
|
Carrying
amount (net) |
|
Estimated
fair value |
|
|||||
Assets
|
Loans and other receivables
|
$
|
3,668
|
|
$
|
3,722
|
|
|
$
|
4,113
|
|
$
|
4,208
|
|
Liabilities
|
Borrowings (Note 11)
|
81,878
|
|
83,054
|
|
|
90,882
|
|
97,754
|
|
||||
|
Investment contracts (Note 12)
|
2,129
|
|
2,597
|
|
|
2,191
|
|
2,588
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FAIR VALUE OF DERIVATIVES
|
June 30, 2020
|
|
December 31, 2019
|
||||||||||||||||
(In millions)
|
Gross Notional
|
|
All other assets
|
|
All other liabilities
|
|
|
Gross Notional
|
|
All other assets
|
|
All other liabilities
|
|
||||||
Interest rate contracts
|
$
|
20,790
|
|
$
|
2,081
|
|
$
|
9
|
|
|
$
|
23,918
|
|
$
|
1,636
|
|
$
|
11
|
|
Currency exchange contracts
|
6,457
|
|
58
|
|
194
|
|
|
7,044
|
|
99
|
|
46
|
|
||||||
Derivatives accounted for as hedges
|
$
|
27,247
|
|
$
|
2,139
|
|
$
|
203
|
|
|
$
|
30,961
|
|
$
|
1,734
|
|
$
|
57
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
$
|
717
|
|
$
|
9
|
|
$
|
7
|
|
|
$
|
3,185
|
|
$
|
18
|
|
$
|
12
|
|
Currency exchange contracts
|
60,356
|
|
750
|
|
1,018
|
|
|
62,165
|
|
697
|
|
744
|
|
||||||
Other contracts
|
1,482
|
|
87
|
|
30
|
|
|
1,706
|
|
123
|
|
40
|
|
||||||
Derivatives not accounted for as hedges
|
$
|
62,554
|
|
$
|
846
|
|
$
|
1,055
|
|
|
$
|
67,056
|
|
$
|
838
|
|
$
|
796
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross derivatives
|
$
|
89,801
|
|
$
|
2,985
|
|
$
|
1,257
|
|
|
$
|
98,018
|
|
$
|
2,572
|
|
$
|
853
|
|
|
|
|
|
|
|
|
|
||||||||||||
Netting and credit adjustments
|
|
$
|
(704
|
)
|
$
|
(710
|
)
|
|
|
$
|
(546
|
)
|
$
|
(546
|
)
|
||||
Cash collateral adjustments
|
|
(1,212
|
)
|
(149
|
)
|
|
|
(1,286
|
)
|
(105
|
)
|
||||||||
Net derivatives recognized in statement of financial position
|
|
$
|
1,069
|
|
$
|
398
|
|
|
|
$
|
740
|
|
$
|
202
|
|
||||
|
|
|
|
|
|
|
|
||||||||||||
Net accrued interest
|
|
$
|
118
|
|
$
|
15
|
|
|
|
$
|
182
|
|
$
|
1
|
|
||||
Securities held as collateral
|
|
(720
|
)
|
—
|
|
|
|
(469
|
)
|
—
|
|
||||||||
Net amount
|
|
$
|
467
|
|
$
|
413
|
|
|
|
$
|
452
|
|
$
|
203
|
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
Three months ended June 30, 2020
|
|
Three months ended June 30, 2019
|
||||||||||||||||||||||||||||
(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
|
$
|
17,750
|
|
$
|
15,083
|
|
$
|
997
|
|
$
|
3,079
|
|
$
|
2,078
|
|
|
$
|
23,414
|
|
$
|
17,412
|
|
$
|
929
|
|
$
|
3,425
|
|
$
|
164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Total effect of cash flow hedges
|
$
|
15
|
|
$
|
(13
|
)
|
$
|
(12
|
)
|
$
|
(2
|
)
|
$
|
—
|
|
|
$
|
(15
|
)
|
$
|
(5
|
)
|
$
|
(9
|
)
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Hedged items
|
|
|
$
|
(122
|
)
|
|
|
|
|
|
$
|
(659
|
)
|
|
|
||||||||||||||||
Derivatives designated as hedging instruments
|
|
|
109
|
|
|
|
|
|
|
646
|
|
|
|
||||||||||||||||||
Total effect of fair value hedges
|
|
|
$
|
(12
|
)
|
|
|
|
|
|
$
|
(14
|
)
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Interest rate contracts
|
$
|
(12
|
)
|
$
|
—
|
|
$
|
(4
|
)
|
$
|
—
|
|
$
|
—
|
|
|
$
|
(14
|
)
|
$
|
—
|
|
$
|
(14
|
)
|
$
|
—
|
|
$
|
—
|
|
Currency exchange contracts
|
(95
|
)
|
16
|
|
—
|
|
104
|
|
(32
|
)
|
|
(433
|
)
|
(31
|
)
|
—
|
|
(17
|
)
|
(27
|
)
|
||||||||||
Other
|
—
|
|
—
|
|
—
|
|
97
|
|
11
|
|
|
—
|
|
—
|
|
27
|
|
—
|
|
(12
|
)
|
||||||||||
Total effect of derivatives not designated as hedges
|
$
|
(107
|
)
|
$
|
16
|
|
$
|
(4
|
)
|
$
|
201
|
|
$
|
(21
|
)
|
|
$
|
(447
|
)
|
$
|
(31
|
)
|
$
|
13
|
|
$
|
(17
|
)
|
$
|
(39
|
)
|
|
Six months ended June 30, 2020
|
|
Six months ended June 30, 2019
|
||||||||||||||||||||||||||||
(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
|
$
|
38,273
|
|
$
|
30,778
|
|
$
|
1,791
|
|
$
|
6,144
|
|
$
|
8,947
|
|
|
$
|
45,616
|
|
$
|
33,620
|
|
$
|
1,993
|
|
$
|
6,827
|
|
$
|
1,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Total effect of cash flow hedges
|
$
|
(6
|
)
|
$
|
(38
|
)
|
$
|
(23
|
)
|
$
|
(5
|
)
|
$
|
—
|
|
|
$
|
5
|
|
$
|
(14
|
)
|
$
|
(19
|
)
|
$
|
(1
|
)
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Hedged items
|
|
|
$
|
(2,601
|
)
|
|
|
|
|
|
$
|
(1,186
|
)
|
|
|
||||||||||||||||
Derivatives designated as hedging instruments
|
|
|
2,620
|
|
|
|
|
|
|
1,161
|
|
|
|
||||||||||||||||||
Total effect of fair value hedges
|
|
|
$
|
19
|
|
|
|
|
|
|
$
|
(25
|
)
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Interest rate contracts
|
$
|
(35
|
)
|
$
|
—
|
|
$
|
(13
|
)
|
$
|
—
|
|
$
|
—
|
|
|
$
|
(18
|
)
|
$
|
—
|
|
$
|
(29
|
)
|
$
|
—
|
|
$
|
—
|
|
Currency exchange contracts
|
(616
|
)
|
29
|
|
—
|
|
159
|
|
(21
|
)
|
|
(43
|
)
|
(22
|
)
|
—
|
|
(62
|
)
|
(25
|
)
|
||||||||||
Other
|
—
|
|
—
|
|
—
|
|
(63
|
)
|
(11
|
)
|
|
—
|
|
—
|
|
123
|
|
—
|
|
1
|
|
||||||||||
Total effect of derivatives not designated as hedges
|
$
|
(652
|
)
|
$
|
29
|
|
$
|
(13
|
)
|
$
|
95
|
|
$
|
(32
|
)
|
|
$
|
(62
|
)
|
$
|
(22
|
)
|
$
|
94
|
|
$
|
(62
|
)
|
$
|
(24
|
)
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
Six months ended June 30
|
|||||
(In millions)
|
2020
|
|
2019
|
|
||
Combined GE and GE Capital cash from (used for) operating activities - continuing operations
|
$
|
(2,298
|
)
|
$
|
211
|
|
GE current receivables sold to GE Capital(a)
|
(452
|
)
|
560
|
|
||
GE long-term receivables sold to GE Capital(b)
|
177
|
|
269
|
|
||
Supply chain finance programs(c)
|
1,457
|
|
473
|
|
||
Other reclassifications and eliminations
|
(202
|
)
|
14
|
|
||
Consolidated cash from (used for) operating activities - continuing operations
|
$
|
(1,319
|
)
|
$
|
1,528
|
|
|
|
|
||||
Combined GE and GE Capital cash from (used for) investing activities - continuing operations
|
$
|
27,207
|
|
$
|
3,495
|
|
GE current receivables sold to GE Capital
|
270
|
|
(1,297
|
)
|
||
GE long-term receivables sold to GE Capital(b)
|
(177
|
)
|
(269
|
)
|
||
Supply chain finance programs(c)
|
(1,457
|
)
|
(473
|
)
|
||
GE Capital long-term loans to GE
|
(7,500
|
)
|
—
|
|
||
Capital contribution from GE to GE Capital
|
—
|
|
1,500
|
|
||
Other reclassifications and eliminations
|
167
|
|
(689
|
)
|
||
Consolidated cash from (used for) investing activities - continuing operations
|
$
|
18,509
|
|
$
|
2,266
|
|
|
|
|
||||
Combined GE and GE Capital cash from (used for) financing activities - continuing operations
|
$
|
(19,717
|
)
|
$
|
(6,004
|
)
|
GE current receivables sold to GE Capital
|
183
|
|
737
|
|
||
GE Capital long-term loans to GE
|
7,500
|
|
—
|
|
||
Capital contribution from GE to GE Capital
|
—
|
|
(1,500
|
)
|
||
Other reclassifications and eliminations
|
36
|
|
674
|
|
||
Consolidated cash from (used for) financing activities - continuing operations
|
$
|
(11,999
|
)
|
$
|
(6,092
|
)
|
(a)
|
Included the elimination of $7,494 million payments to GE for current receivables purchased and retained by GE Capital and the related reclassification to CFOA of $7,042 million due to GE Capital collections and other activity in our consolidated statement of cash flows for the six months ended June 30, 2020. Included the elimination of $7,165 million payments and the reclassification to CFOA of $7,725 million collections and other activity for the six months ended June 30, 2019.
|
(b)
|
Primarily included the reclassification of long-term receivables purchased and retained by GE Capital to current receivables.
|
(c)
|
Represents the elimination of net payments from GE to GE Capital related to the funded participation in a supply chain finance program with GE Capital. The reduction of the GE liability associated with this program is primarily as a result of GE Capital's sale of the program platform to MUFG Union Bank, N.A. (MUFG) in 2019.
|
FINANCIAL STATEMENTS
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
|
Three months ended June 30, 2020
|
|
Six months ended June 30, 2020
|
|
||
Revenues
|
$
|
4,736
|
|
$
|
10,160
|
|
Gross profit
|
678
|
|
1,433
|
|
||
Net income (loss)
|
(355
|
)
|
(16,453
|
)
|
||
Net income (loss) attributable to the entity
|
(201
|
)
|
(10,411
|
)
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||
(In millions)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
Purchases and sales of business interests(a)
|
$
|
52
|
|
$
|
(39
|
)
|
|
$
|
12,424
|
|
$
|
214
|
|
Licensing and royalty income
|
31
|
|
80
|
|
|
73
|
|
120
|
|
||||
Associated companies
|
31
|
|
82
|
|
|
69
|
|
121
|
|
||||
Net interest and investment income(b)
|
1,955
|
|
23
|
|
|
(3,677
|
)
|
160
|
|
||||
Other items
|
48
|
|
26
|
|
|
101
|
|
410
|
|
||||
GE
|
$
|
2,116
|
|
$
|
172
|
|
|
$
|
8,990
|
|
$
|
1,024
|
|
Eliminations
|
(38
|
)
|
(8
|
)
|
|
(43
|
)
|
(13
|
)
|
||||
Total
|
$
|
2,078
|
|
$
|
164
|
|
|
$
|
8,947
|
|
$
|
1,012
|
|
(a)
|
Included a pre-tax gain of $12,341 million on the sale of BioPharma for the six months ended June 30, 2020. Included a pre-tax gain of $223 million on the sale of ServiceMax for the six months ended June 30, 2019. See Note 2 for further information.
|
(b)
|
Included a pre-tax unrealized gain of $1,846 million and a pre-tax unrealized loss of $3,865 million for the three and six months ended June 30, 2020, respectively, related to our interest in Baker Hughes in 2020. See Note 3 for further information.
|
OTHER ITEMS
|
|
|
•
|
the severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of businesses’ and governments’ responses to the pandemic on our operations and personnel, and on commercial activity and demand across our and our customers’ businesses, and on global supply chains;
|
•
|
our inability to predict the extent to which the COVID-19 pandemic and related impacts will continue to adversely impact our business operations, financial performance, results of operations, financial position, the prices of our securities and the achievement of our strategic objectives;
|
•
|
changes in macroeconomic and market conditions and market volatility (including developments and volatility arising from the COVID-19 pandemic), including interest rates, the value of securities and other financial assets (including our equity ownership position in Baker Hughes), oil and other commodity prices and exchange rates, and the impact of such changes and volatility on our financial position;
|
•
|
our de-leveraging and capital allocation plans, including with respect to actions to reduce our indebtedness, the timing and amount of GE dividends, organic investments, and other priorities;
|
•
|
further downgrades of our current short- and long-term credit ratings or ratings outlooks, or changes in rating application or methodology, and the related impact on our liquidity, funding profile, costs and competitive position;
|
•
|
GE’s liquidity and the amount and timing of our GE Industrial cash flows and earnings, which may be impacted by customer, supplier, competitive, contractual and other dynamics and conditions;
|
•
|
GE Capital's capital and liquidity needs, including in connection with GE Capital’s run-off insurance operations and discontinued operations, the amount and timing of required capital contributions to the insurance operations and any strategic actions that we may pursue; the impact of conditions in the financial and credit markets on GE Capital's ability to sell financial assets; the availability and cost of funding; and GE Capital's exposure to particular counterparties and markets;
|
•
|
our success in executing and completing asset dispositions or other transactions, including our plan to exit our equity ownership position in Baker Hughes, the timing of closing for such transactions and the expected proceeds and benefits to GE;
|
•
|
global economic trends, competition and geopolitical risks, including changes in the rates of investment or economic growth in key markets we serve, or an escalation of trade tensions such as those between the U.S. and China;
|
•
|
market developments or customer actions that may affect levels of demand and the financial performance of the major industries and customers we serve, such as secular, cyclical and competitive pressures in our Power business, pricing and other pressures in the renewable energy market, levels of demand for air travel and other customer dynamics such as early aircraft retirements, conditions in key geographic markets and other shifts in the competitive landscape for our products and services;
|
•
|
operational execution by our businesses, including our ability to improve the operations and execution of our Power and Renewable Energy businesses, and the performance of our Aviation business;
|
•
|
changes in law, regulation or policy that may affect our businesses, such as trade policy and tariffs, regulation related to climate change, and the effects of U.S. tax reform and other tax law changes;
|
•
|
our decisions about investments in new products, services and platforms, and our ability to launch new products in a cost-effective manner;
|
•
|
our ability to increase margins through implementation of operational changes, restructuring and other cost reduction measures;
|
•
|
the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of Alstom, SEC and other investigative and legal proceedings;
|
•
|
the impact of actual or potential failures of our products or third-party products with which our products are integrated, such as the fleet grounding of the Boeing 737 MAX, and the timing of its return to service and return to delivery, and related reputational effects;
|
•
|
the impact of potential information technology, cybersecurity or data security breaches; and
|
•
|
the other factors that are described in the "Risk Factors" section of this report and of our Annual Report on Form 10-K for the year ended December 31, 2019 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, as such descriptions may be updated or amended in any future reports we file with the SEC.
|
OTHER ITEMS
|
|
|
Computation of Per Share Earnings. Data is provided in Note 16 of this Report.
|
||
Exhibit 101
|
The following materials from General Electric Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, formatted in XBRL (eXtensible Business Reporting Language); (i) Statement of Earnings (Loss) for the three and six months ended June 30, 2020 and 2019, (ii) Statement of Financial Position at June 30, 2020 and December 31, 2019, (iii) Statement of Cash Flows for the six months ended June 30, 2020 and 2019, (iv) Consolidated Statement of Comprehensive Income (Loss) for the three and six months ended June 30, 2020 and 2019, (v) Statement of Changes in Shareholders' Equity for the three and six months ended June 30, 2020 and 2019, and (vi) Notes to Consolidated Financial Statements.
|
|
Exhibit 104
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
|
July 29, 2020
|
|
/s/ Thomas S. Timko
|
Date
|
|
Thomas S. Timko
Vice President, Chief Accounting Officer and Controller
Principal Accounting Officer
|
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