Document and Entity Information
Document and Entity Information shares in Thousands | 9 Months Ended |
Sep. 30, 2017shares | |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2017 |
Amendment Flag | false |
Entity Registrant Name | General Electric Company |
Trading Symbol | GE |
Entity Central Index Key | 40,545 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 8,672,085 |
Document Fiscal Period Focus | Q3 |
Document Fiscal Year Focus | 2,017 |
STATEMENT OF EARNINGS (LOSS)
STATEMENT OF EARNINGS (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||||
Revenues and other income | |||||||
Sales of goods | $ 19,386 | $ 18,553 | $ 54,562 | $ 54,626 | |||
Sales of services | 10,043 | 8,261 | 27,333 | 25,530 | |||
Other income | 2,146 | 227 | 2,611 | 3,385 | |||
GE Capital earnings (loss) from continuing operations | 0 | 0 | 0 | 0 | |||
GE Capital revenues from services | 1,898 | 2,224 | 6,184 | 7,063 | |||
Total revenues and other income (loss) | 33,472 | 29,266 | 90,691 | 90,604 | |||
Costs and expenses | |||||||
Cost of goods sold | 16,815 | 15,255 | 46,805 | 45,533 | |||
Cost of services sold | 7,279 | 5,711 | 19,441 | 18,177 | |||
Selling, general and administrative expenses | 4,855 | 4,343 | 13,649 | 13,833 | |||
Interest and other financial charges | 1,232 | 961 | 3,545 | 4,023 | |||
Investment contracts, insurance losses and insurance annuity benefits | 617 | 684 | 1,908 | 2,101 | |||
Other costs and expenses | 1,208 | 238 | 1,531 | 801 | |||
Total costs and expenses | 32,006 | 27,191 | 86,879 | 84,467 | |||
Earnings (loss) from continuing operations before income taxes | 1,466 | 2,074 | 3,812 | 6,137 | |||
Benefit (provision) for income taxes | 334 | (18) | 303 | (302) | |||
Earnings (loss) from continuing operations | 1,800 | 2,056 | 4,115 | 5,835 | |||
Earnings (loss) from discontinued operations, net of taxes | (106) | (105) | (490) | (954) | |||
Net earnings (loss) | 1,694 | 1,951 | 3,624 | 4,881 | |||
Less net earnings (loss) attributable to noncontrolling interests | (142) | (76) | (231) | (283) | |||
Net earnings (loss) attributable to the Company | 1,836 | 2,027 | 3,856 | 5,164 | |||
Preferred stock dividends | (36) | (33) | (252) | (474) | |||
Net earnings (loss) attributable to GE common shareowners | 1,800 | 1,994 | 3,604 | 4,689 | |||
Amounts attributable to GE common shareowners | |||||||
Earnings (loss) from continuing operations | 1,800 | 2,056 | 4,115 | 5,835 | |||
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | (141) | (74) | (238) | (285) | |||
Earnings (loss) from continuing operations attributable to the Company | 1,941 | 2,131 | 4,352 | 6,120 | |||
Preferred stock dividends | (36) | (33) | (252) | (474) | |||
Earnings (loss) from continuing operations attributable to GE common shareowners | 1,905 | 2,097 | 4,101 | 5,645 | |||
Earnings (loss) from discontinued operations, net of taxes | (106) | (105) | (490) | (954) | |||
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | (1) | (2) | 6 | 2 | |||
Net earnings (loss) attributable to GE common shareowners | $ 1,800 | $ 1,994 | $ 3,604 | $ 4,689 | |||
Earnings (loss) from continuing operations | |||||||
Diluted earnings (loss) per share (in dollars per share) | $ 0.22 | $ 0.23 | $ 0.47 | $ 0.61 | |||
Basic earnings (loss) per share (in dollars per share) | 0.22 | 0.24 | 0.47 | 0.62 | |||
Net earnings (loss) | |||||||
Diluted earnings (loss) per share (in dollars per share) | 0.21 | 0.22 | 0.41 | 0.51 | |||
Basic earnings (loss) per share (in dollars per share) | 0.21 | 0.22 | 0.41 | 0.51 | |||
Dividends declared per common share (in dollars per share) | $ 0.24 | $ 0.23 | $ 0.72 | $ 0.69 | |||
GE | |||||||
Revenues and other income | |||||||
Sales of goods | [1] | $ 19,358 | $ 18,621 | $ 54,622 | $ 54,745 | ||
Sales of services | [1] | 10,080 | 8,313 | 27,501 | 25,745 | ||
Other income | [1] | 2,141 | 213 | 2,578 | 3,359 | ||
GE Capital earnings (loss) from continuing operations | [1] | 24 | 26 | (195) | (1,466) | ||
GE Capital revenues from services | [1] | 0 | 0 | 0 | 0 | ||
Total revenues and other income (loss) | [1] | 31,603 | 27,172 | 84,506 | 82,382 | ||
Costs and expenses | |||||||
Cost of goods sold | [1] | 16,796 | 15,329 | 46,888 | 45,669 | ||
Cost of services sold | [1] | 6,725 | 5,216 | 17,934 | 16,725 | ||
Selling, general and administrative expenses | [1] | 4,717 | 3,880 | 12,656 | 12,094 | ||
Interest and other financial charges | [1] | 718 | 483 | 1,918 | 1,490 | ||
Investment contracts, insurance losses and insurance annuity benefits | [1] | 0 | 0 | 0 | 0 | ||
Other costs and expenses | [1],[2] | 947 | 0 | 947 | 0 | ||
Total costs and expenses | [1] | 29,903 | 24,909 | 80,344 | 75,977 | ||
Earnings (loss) from continuing operations before income taxes | [1] | 1,701 | 2,263 | 4,162 | 6,405 | ||
Benefit (provision) for income taxes | [1] | 64 | (241) | (297) | (1,034) | ||
Earnings (loss) from continuing operations | [1] | 1,765 | 2,022 | 3,865 | 5,370 | ||
Earnings (loss) from discontinued operations, net of taxes | [1] | (105) | (103) | (497) | [3] | (956) | [3] |
Net earnings (loss) | [1] | 1,660 | 1,918 | 3,368 | [3] | 4,414 | [3] |
Less net earnings (loss) attributable to noncontrolling interests | [1] | (140) | (76) | (236) | [3] | (275) | [3] |
Net earnings (loss) attributable to the Company | [1] | 1,800 | 1,994 | 3,604 | [3] | 4,689 | [3] |
Preferred stock dividends | [1] | 0 | 0 | 0 | 0 | ||
Net earnings (loss) attributable to GE common shareowners | [1] | 1,800 | 1,994 | 3,604 | 4,689 | ||
Amounts attributable to GE common shareowners | |||||||
Earnings (loss) from continuing operations | [1] | 1,765 | 2,022 | 3,865 | 5,370 | ||
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | [1] | (140) | (76) | (236) | (275) | ||
Earnings (loss) from continuing operations attributable to the Company | [1] | 1,905 | 2,097 | 4,101 | 5,645 | ||
Preferred stock dividends | [1] | 0 | 0 | 0 | 0 | ||
Earnings (loss) from continuing operations attributable to GE common shareowners | [1] | 1,905 | 2,097 | 4,101 | 5,645 | ||
Earnings (loss) from discontinued operations, net of taxes | [1] | (105) | (103) | (497) | [3] | (956) | [3] |
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | [1] | 0 | 0 | 0 | 0 | ||
Net earnings (loss) attributable to GE common shareowners | [1] | 1,800 | 1,994 | 3,604 | 4,689 | ||
Financial Services (GE Capital) | |||||||
Revenues and other income | |||||||
Sales of goods | 39 | 34 | 101 | 88 | |||
Sales of services | 0 | 0 | 0 | 0 | |||
Other income | 0 | 0 | 0 | 0 | |||
GE Capital earnings (loss) from continuing operations | 0 | 0 | 0 | 0 | |||
GE Capital revenues from services | 2,359 | 2,566 | 7,424 | 8,168 | |||
Total revenues and other income (loss) | 2,397 | 2,600 | 7,525 | 8,256 | |||
Costs and expenses | |||||||
Cost of goods sold | 30 | 27 | 79 | 71 | |||
Cost of services sold | 592 | 547 | 1,673 | 1,667 | |||
Selling, general and administrative expenses | 285 | 631 | 1,358 | 2,238 | |||
Interest and other financial charges | 790 | 617 | 2,373 | 3,006 | |||
Investment contracts, insurance losses and insurance annuity benefits | 640 | 700 | 1,958 | 2,186 | |||
Other costs and expenses | [2] | 271 | 241 | 629 | 822 | ||
Total costs and expenses | 2,608 | 2,763 | 8,070 | 9,990 | |||
Earnings (loss) from continuing operations before income taxes | (211) | (163) | (545) | (1,734) | |||
Benefit (provision) for income taxes | 270 | 223 | 600 | 732 | |||
Earnings (loss) from continuing operations | 59 | 60 | 55 | (1,002) | |||
Earnings (loss) from discontinued operations, net of taxes | (106) | (105) | (494) | (954) | |||
Net earnings (loss) | (47) | (45) | (439) | (1,956) | |||
Less net earnings (loss) attributable to noncontrolling interests | (2) | 0 | 5 | (8) | |||
Net earnings (loss) attributable to the Company | (46) | (45) | (443) | (1,948) | |||
Preferred stock dividends | (36) | (33) | (252) | (474) | |||
Net earnings (loss) attributable to GE common shareowners | (81) | (78) | (695) | (2,422) | |||
Amounts attributable to GE common shareowners | |||||||
Earnings (loss) from continuing operations | 59 | 60 | 55 | (1,002) | |||
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | (1) | 1 | (2) | (10) | |||
Earnings (loss) from continuing operations attributable to the Company | 60 | 59 | 57 | (992) | |||
Preferred stock dividends | (36) | (33) | (252) | (474) | |||
Earnings (loss) from continuing operations attributable to GE common shareowners | 24 | 26 | (195) | (1,466) | |||
Earnings (loss) from discontinued operations, net of taxes | (106) | (105) | (494) | (954) | |||
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | (1) | (2) | 6 | 2 | |||
Net earnings (loss) attributable to GE common shareowners | $ (81) | $ (78) | $ (695) | $ (2,422) | |||
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. | ||||||
[2] | GE amount represents a goodwill impairment charge recognized in the third quarter of 2017. See Note 8 for further information. | ||||||
[3] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 1,694 | $ 1,951 | $ 3,624 | $ 4,881 |
Less net earnings (loss) attributable to noncontrolling interests | (142) | (76) | (231) | (283) |
Net earnings (loss) attributable to the Company | 1,836 | 2,027 | 3,856 | 5,164 |
Other comprehensive income (loss) | ||||
Investment securities | 21 | 97 | 213 | 715 |
Currency translation adjustments | 513 | (194) | 1,854 | (138) |
Cash flow hedges | 100 | 30 | 109 | 60 |
Benefit plans | 423 | 548 | 2,032 | 1,481 |
Other comprehensive income (loss) | 1,058 | 481 | 4,209 | 2,117 |
Less other comprehensive income (loss) attributable to noncontrolling interests | 127 | 5 | 134 | 10 |
Other comprehensive income (loss) attributable to the Company | 931 | 477 | 4,075 | 2,107 |
Comprehensive income (loss) | 2,752 | 2,432 | 7,833 | 6,998 |
Less comprehensive income (loss) attributable to noncontrolling interests | (15) | (71) | (98) | (273) |
Comprehensive income (loss) attributable to the Company | $ 2,766 | $ 2,504 | $ 7,931 | $ 7,271 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS' EQUITY $ in Millions | USD ($) | |
Increase (Decrease) in Stockholders' Equity | ||
Noncontrolling interests | $ 1,864 | |
Beginning balance at Dec. 31, 2015 | 98,274 | |
Increase (Decrease) in Stockholders' Equity | ||
Net earnings (loss) attributable to the Company | 5,164 | |
Dividends and other transactions with shareowners | (6,770) | |
Redemption value adjustment for redeemable noncontrolling interests | (178) | |
Other comprehensive income (loss) attributable to the Company | 2,107 | |
Net sales (purchases) of shares for treasury | (16,310) | |
Changes in other capital | (404) | [1] |
Ending balance at Sep. 30, 2016 | 81,882 | |
Increase (Decrease) in Stockholders' Equity | ||
Noncontrolling interests | 1,693 | |
Net earnings (loss) attributable to the Company | 2,027 | |
Other comprehensive income (loss) attributable to the Company | 477 | |
Ending balance at Sep. 30, 2016 | 81,882 | |
Increase (Decrease) in Stockholders' Equity | ||
Noncontrolling interests | 1,663 | |
Total equity (Note 14) | 83,544 | |
Noncontrolling interests | 1,663 | [2] |
Total equity (Note 14) | 77,491 | |
Beginning balance at Dec. 31, 2016 | 75,828 | |
Increase (Decrease) in Stockholders' Equity | ||
Net earnings (loss) attributable to the Company | 3,856 | |
Dividends and other transactions with shareowners | (6,514) | |
Redemption value adjustment for redeemable noncontrolling interests | (177) | |
Other comprehensive income (loss) attributable to the Company | 4,075 | |
Net sales (purchases) of shares for treasury | (2,161) | |
Changes in other capital | 1,199 | [1] |
Ending balance at Sep. 30, 2017 | 76,105 | |
Increase (Decrease) in Stockholders' Equity | ||
Noncontrolling interests | 1,634 | |
Net earnings (loss) attributable to the Company | 1,836 | |
Other comprehensive income (loss) attributable to the Company | 931 | |
Ending balance at Sep. 30, 2017 | 76,105 | |
Increase (Decrease) in Stockholders' Equity | ||
Noncontrolling interests | 17,947 | [2] |
Total equity (Note 14) | $ 94,052 | |
[1] | The Baker Hughes transaction resulted in an increase to additional paid in capital of $1,131 million. See Note 8 for further information. | |
[2] | Included AOCI attributable to noncontrolling interests of $(144) million and $(278) million at September 30, 2017 and December 31, 2016, respectively. |
CONSOLIDATED STATEMENT OF CHAN5
CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Difference recorded as an increase in additional paid in capital | [1] | $ 1,199 | $ (404) |
BHGE Inc. | |||
Difference recorded as an increase in additional paid in capital | $ 1,131 | ||
[1] | The Baker Hughes transaction resulted in an increase to additional paid in capital of $1,131 million. See Note 8 for further information. |
STATEMENT OF FINANCIAL POSITION
STATEMENT OF FINANCIAL POSITION - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Assets | |||
Cash and equivalents | $ 39,854 | $ 48,129 | |
Investment securities (Note 3) | 38,696 | 44,313 | |
Current receivables (Note 4) | 25,026 | 24,076 | |
Inventories (Note 5) | 25,848 | 22,354 | |
Financing receivables – net (Note 6) | 12,228 | 12,242 | |
Other GE Capital receivables | 6,107 | 5,944 | |
Property, plant and equipment – net (Note 7) | 54,101 | 50,518 | |
Receivable from GE Capital | 0 | 0 | |
Investment in GE Capital | 0 | 0 | |
Goodwill (Note 8) | 87,068 | 70,438 | |
Other intangible assets – net (Note 8) | 21,435 | 16,436 | |
Contract assets (Note 9) | 29,809 | 25,162 | |
All other assets | 27,576 | 27,176 | |
Deferred income taxes, assets (Note 13) | 1,129 | 1,833 | |
Assets of businesses held for sale (Note 2) | 2,369 | 1,745 | |
Assets of discontinued operations (Note 2) | 6,791 | 14,815 | |
Total assets | [1] | 378,038 | 365,183 |
Liabilities and equity | |||
Short-term borrowings (Note 10) | 28,127 | 30,714 | |
Accounts payable, principally trade accounts | 14,907 | 14,435 | |
Progress collections and price adjustments accrued | 16,970 | 16,760 | |
Dividends payable | 2,093 | 2,107 | |
Other GE current liabilities | 17,420 | 17,564 | |
Non-recourse borrowings of consolidated securitization entities (Note 10) | 708 | 417 | |
Long-term borrowings (Note 10) | 107,557 | 105,080 | |
Investment contracts, insurance liabilities and insurance annuity benefits (Note 11) | 26,597 | 26,086 | |
Non-current compensation and benefits | 42,423 | 43,780 | |
All other liabilities | 22,191 | 22,912 | |
Liabilities of businesses held for sale (Note 2) | 561 | 656 | |
Liabilities of discontinued operations (Note 2) | 990 | 4,158 | |
Total Liabilities | [1] | 280,544 | 284,668 |
Redeemable noncontrolling interests (Note 14) | 3,441 | 3,025 | |
Preferred stock (5,944,250 shares outstanding at both September 30, 2017 and December 31, 2016) | 6 | 6 | |
Common stock (8,672,085,000 and 8,742,614,000 shares outstanding at September 30, 2017 and December 31, 2016, respectively) | 702 | 702 | |
Accumulated other comprehensive income (loss) - net attributable to GE | |||
Investment securities | [2] | 887 | 674 |
Currency translation adjustments | [2] | (5,092) | (6,816) |
Cash flow hedges | [2] | 119 | 12 |
Benefit plans | [2] | (10,436) | (12,469) |
Other capital | 38,423 | 37,224 | |
Retained earnings | 136,696 | 139,532 | |
Less common stock held in treasury | (85,199) | (83,038) | |
Total GE shareowners’ equity | 76,105 | 75,828 | |
Noncontrolling interests (Note 14) | [3] | 17,947 | 1,663 |
Total equity (Note 14) | 94,052 | 77,491 | |
Total liabilities, redeemable noncontrolling interests and equity | 378,038 | 365,183 | |
GE | |||
Assets | |||
Cash and equivalents | [4] | 12,836 | 10,525 |
Investment securities (Note 3) | [4] | 384 | 137 |
Current receivables (Note 4) | [4] | 14,725 | 12,715 |
Inventories (Note 5) | [4] | 25,767 | 22,263 |
Financing receivables – net (Note 6) | [4] | 0 | 0 |
Other GE Capital receivables | [4] | 0 | 0 |
Property, plant and equipment – net (Note 7) | [4] | 23,740 | 19,103 |
Receivable from GE Capital | [4],[5] | 42,593 | 58,780 |
Investment in GE Capital | [4] | 20,856 | 24,677 |
Goodwill (Note 8) | [4] | 84,698 | 68,070 |
Other intangible assets – net (Note 8) | [4] | 21,170 | 16,131 |
Contract assets (Note 9) | [4] | 29,809 | 25,162 |
All other assets | [4] | 14,083 | 12,007 |
Deferred income taxes, assets (Note 13) | [4] | 6,179 | 6,666 |
Assets of businesses held for sale (Note 2) | [4] | 2,220 | 1,629 |
Assets of discontinued operations (Note 2) | [4] | 0 | 9 |
Total assets | [4] | 299,061 | 277,874 |
Liabilities and equity | |||
Short-term borrowings (Note 10) | [4],[5] | 18,748 | 20,482 |
Accounts payable, principally trade accounts | [4] | 20,574 | 20,876 |
Progress collections and price adjustments accrued | [4] | 17,139 | 16,838 |
Dividends payable | [4] | 2,093 | 2,107 |
Other GE current liabilities | [4] | 17,420 | 17,564 |
Non-recourse borrowings of consolidated securitization entities (Note 10) | [4] | 0 | 0 |
Long-term borrowings (Note 10) | [4],[5] | 65,097 | 58,810 |
Investment contracts, insurance liabilities and insurance annuity benefits (Note 11) | [4] | 0 | 0 |
Non-current compensation and benefits | [4] | 41,447 | 42,770 |
All other liabilities | [4] | 18,688 | 17,506 |
Liabilities of businesses held for sale (Note 2) | [4] | 561 | 656 |
Liabilities of discontinued operations (Note 2) | [4] | 24 | 35 |
Total Liabilities | [4] | 201,791 | 197,644 |
Redeemable noncontrolling interests (Note 14) | [4] | 3,441 | 3,025 |
Preferred stock (5,944,250 shares outstanding at both September 30, 2017 and December 31, 2016) | [4] | 6 | 6 |
Common stock (8,672,085,000 and 8,742,614,000 shares outstanding at September 30, 2017 and December 31, 2016, respectively) | [4] | 702 | 702 |
Accumulated other comprehensive income (loss) - net attributable to GE | |||
Investment securities | [4] | 887 | 674 |
Currency translation adjustments | [4] | (5,092) | (6,816) |
Cash flow hedges | [4] | 119 | 12 |
Benefit plans | [4] | (10,436) | (12,469) |
Other capital | [4] | 38,423 | 37,224 |
Retained earnings | [4] | 136,696 | 139,532 |
Less common stock held in treasury | [4] | (85,199) | (83,038) |
Total GE shareowners’ equity | [4] | 76,105 | 75,828 |
Noncontrolling interests (Note 14) | [4] | 17,723 | 1,378 |
Total equity (Note 14) | [4] | 93,829 | 77,205 |
Total liabilities, redeemable noncontrolling interests and equity | [4] | 299,061 | 277,874 |
Financial Services (GE Capital) | |||
Assets | |||
Cash and equivalents | 27,019 | 37,604 | |
Investment securities (Note 3) | 38,415 | 44,180 | |
Current receivables (Note 4) | 0 | 0 | |
Inventories (Note 5) | 81 | 91 | |
Financing receivables – net (Note 6) | 24,900 | 26,041 | |
Other GE Capital receivables | 15,654 | 15,576 | |
Property, plant and equipment – net (Note 7) | 31,260 | 32,225 | |
Receivable from GE Capital | [5] | 0 | 0 |
Investment in GE Capital | 0 | 0 | |
Goodwill (Note 8) | 2,370 | 2,368 | |
Other intangible assets – net (Note 8) | 266 | 305 | |
Contract assets (Note 9) | 0 | 0 | |
All other assets | 13,227 | 14,608 | |
Deferred income taxes, liabilities (Note 13) | (5,055) | (4,833) | |
Assets of businesses held for sale (Note 2) | 0 | 0 | |
Assets of discontinued operations (Note 2) | 6,791 | 14,806 | |
Total assets | 154,928 | 182,970 | |
Liabilities and equity | |||
Short-term borrowings (Note 10) | [5] | 21,179 | 23,443 |
Accounts payable, principally trade accounts | 1,883 | 1,605 | |
Progress collections and price adjustments accrued | 0 | 0 | |
Dividends payable | 0 | 0 | |
Other GE current liabilities | 0 | 0 | |
Non-recourse borrowings of consolidated securitization entities (Note 10) | 708 | 417 | |
Long-term borrowings (Note 10) | [5] | 75,651 | 93,443 |
Investment contracts, insurance liabilities and insurance annuity benefits (Note 11) | 27,105 | 26,546 | |
Non-current compensation and benefits | 967 | 1,001 | |
All other liabilities | 5,388 | 7,430 | |
Liabilities of businesses held for sale (Note 2) | 0 | 0 | |
Liabilities of discontinued operations (Note 2) | 966 | 4,123 | |
Total Liabilities | 133,847 | 158,008 | |
Redeemable noncontrolling interests (Note 14) | 0 | 0 | |
Preferred stock (5,944,250 shares outstanding at both September 30, 2017 and December 31, 2016) | 6 | 6 | |
Common stock (8,672,085,000 and 8,742,614,000 shares outstanding at September 30, 2017 and December 31, 2016, respectively) | 0 | 0 | |
Accumulated other comprehensive income (loss) - net attributable to GE | |||
Investment securities | 895 | 656 | |
Currency translation adjustments | (169) | (740) | |
Cash flow hedges | 43 | 43 | |
Benefit plans | (555) | (622) | |
Other capital | 12,773 | 12,669 | |
Retained earnings | 7,863 | 12,664 | |
Less common stock held in treasury | 0 | 0 | |
Total GE shareowners’ equity | 20,856 | 24,677 | |
Noncontrolling interests (Note 14) | 224 | 285 | |
Total equity (Note 14) | 21,080 | 24,962 | |
Total liabilities, redeemable noncontrolling interests and equity | $ 154,928 | $ 182,970 | |
[1] | Our consolidated assets at September 30, 2017 included total assets of $6,018 million of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs. These assets included current receivables and net financing receivables of $1,486 million and investment securities of $965 million within continuing operations and assets of discontinued operations of $285 million. Our consolidated liabilities at September 30, 2017 included liabilities of certain VIEs for which the VIE creditors do not have recourse to GE. These liabilities included non-recourse borrowings of consolidated securitization entities (CSEs) of $(708) million within continuing operations. See Note 17. | ||
[2] | The sum of accumulated other comprehensive income (loss) (AOCI) attributable to the Company was $(14,523) million and $(18,598) million at September 30, 2017 and December 31, 2016, respectively. | ||
[3] | Included AOCI attributable to noncontrolling interests of $(144) million and $(278) million at September 30, 2017 and December 31, 2016, respectively. | ||
[4] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. | ||
[5] | In 2015, senior unsecured notes and commercial paper were assumed by GE upon its merger with GE Capital, resulting in an intercompany receivable and payable between GE and GE Capital. See Note 10. |
STATEMENT OF FINANCIAL POSITIO7
STATEMENT OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares outstanding | 5,944,250 | 5,944,250 |
Common stock, shares outstanding | 8,672,085,000 | 8,742,614,000 |
Total assets of certain variable interest entities | $ 6,018 | |
Sum of accumulated other comprehensive income (loss) (AOCI) attributable to the Company | (14,523) | $ (18,598) |
AOCI attributable to noncontrolling interests | 94,052 | 77,491 |
Attributable to noncontrolling interests | ||
AOCI attributable to noncontrolling interests | (144) | $ (278) |
Current receivables and net financing receivables | ||
Total assets of certain variable interest entities | 1,486 | |
Investment securities | ||
Total assets of certain variable interest entities | 965 | |
Assets of discontinued operations | ||
Total assets of certain variable interest entities | 285 | |
Non-recourse borrowings of consolidated securitization entities (CSEs) | ||
Non-recourse borrowings of consolidated securitization entities (CSEs) within continuing operations | $ (708) |
STATEMENT OF CASH FLOWS
STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Cash flows – operating activities | |||
Net earnings (loss) | $ 3,624 | $ 4,881 | |
Less net earnings (loss) attributable to noncontrolling interests | (231) | (283) | |
Net earnings (loss) attributable to the Company | 3,856 | 5,164 | |
(Earnings) loss from discontinued operations | 490 | 954 | |
Adjustments to reconcile net earnings (loss) attributable to the Company to cash provided from operating activities | |||
Depreciation and amortization of property, plant and equipment | 3,715 | 3,641 | |
(Earnings) loss from continuing operations retained by GE Capital | 0 | 0 | |
Deferred income taxes | (669) | 1,244 | |
Decrease (increase) in GE current receivables | 1,737 | 763 | |
Decrease (increase) in inventories | (1,454) | (2,594) | |
Increase (decrease) in accounts payable | (518) | (49) | |
Increase (decrease) in GE progress collections | (269) | 78 | |
All other operating activities | [1] | (2,881) | (5,356) |
Cash from (used for) operating activities – continuing operations | 4,008 | 3,846 | |
Cash from (used for) operating activities – discontinued operations | (490) | (5,719) | |
Cash from (used for) operating activities | 3,518 | (1,873) | |
Cash flows – investing activities | |||
Additions to property, plant and equipment | (5,071) | (5,109) | |
Dispositions of property, plant and equipment | 3,768 | 3,403 | |
Net decrease (increase) in GE Capital financing receivables | 1,184 | 293 | |
Proceeds from sale of discontinued operations | 1,018 | 53,250 | |
Proceeds from principal business dispositions | 3,030 | 5,273 | |
Net cash from (payments for) principal businesses purchased | (6,053) | (930) | |
All other investing activities | [2] | 6,815 | (2,621) |
Cash from (used for) investing activities – continuing operations | 4,692 | 53,559 | |
Cash from (used for) investing activities – discontinued operations | (2,349) | (12,056) | |
Cash from (used for) investing activities | 2,343 | 41,503 | |
Cash flows – financing activities | |||
Net increase (decrease) in borrowings (maturities of 90 days or less) | 531 | (1,021) | |
Newly issued debt (maturities longer than 90 days) | 9,337 | 1,178 | |
Repayments and other debt reductions (maturities longer than 90 days) | (18,418) | (50,500) | |
Net dispositions (purchases) of GE shares for treasury | (2,620) | (17,969) | |
Dividends paid to shareowners | (6,417) | (6,611) | |
All other financing activities | (640) | (266) | |
Cash from (used for) financing activities – continuing operations | (18,228) | (75,188) | |
Cash from (used for) financing activities – discontinued operations | 1,905 | 295 | |
Cash from (used for) financing activities | (16,323) | (74,893) | |
Effect of currency exchange rate changes on cash and equivalents | 1,253 | (169) | |
Increase (decrease) in cash and equivalents | (9,208) | (35,432) | |
Cash and equivalents at beginning of year | 49,558 | 90,878 | |
Cash and equivalents at September 30 | 40,350 | 55,445 | |
Less cash and equivalents of discontinued operations at September 30 | 496 | 2,915 | |
Cash and equivalents of continuing operations at September 30 | 39,854 | 52,530 | |
GE | |||
Cash flows – operating activities | |||
Net earnings (loss) | [3],[4] | 3,368 | 4,414 |
Less net earnings (loss) attributable to noncontrolling interests | [3],[4] | (236) | (275) |
Net earnings (loss) attributable to the Company | [3],[4] | 3,604 | 4,689 |
(Earnings) loss from discontinued operations | [3],[4] | 497 | 956 |
Adjustments to reconcile net earnings (loss) attributable to the Company to cash provided from operating activities | |||
Depreciation and amortization of property, plant and equipment | [3] | 1,977 | 1,857 |
(Earnings) loss from continuing operations retained by GE Capital | [3],[5] | 4,211 | 17,518 |
Deferred income taxes | [3] | (401) | 81 |
Decrease (increase) in GE current receivables | [3] | 701 | 455 |
Decrease (increase) in inventories | [3] | (1,437) | (2,543) |
Increase (decrease) in accounts payable | [3] | (980) | (38) |
Increase (decrease) in GE progress collections | [3] | (179) | 179 |
All other operating activities | [2],[3] | (3,942) | (4,812) |
Cash from (used for) operating activities – continuing operations | [3] | 4,050 | 18,342 |
Cash from (used for) operating activities – discontinued operations | [3] | 0 | 0 |
Cash from (used for) operating activities | [3] | 4,050 | 18,342 |
Cash flows – investing activities | |||
Additions to property, plant and equipment | [3] | (3,051) | (2,804) |
Dispositions of property, plant and equipment | [3] | 825 | 727 |
Net decrease (increase) in GE Capital financing receivables | [3] | 0 | 0 |
Proceeds from sale of discontinued operations | [3] | 0 | 0 |
Proceeds from principal business dispositions | [3] | 2,908 | 5,273 |
Net cash from (payments for) principal businesses purchased | [3] | (6,053) | (930) |
All other investing activities | [2],[3] | (2,375) | (1,915) |
Cash from (used for) investing activities – continuing operations | [3] | (7,745) | 350 |
Cash from (used for) investing activities – discontinued operations | [3] | 0 | 0 |
Cash from (used for) investing activities | [3] | (7,744) | 351 |
Cash flows – financing activities | |||
Net increase (decrease) in borrowings (maturities of 90 days or less) | [3] | 170 | 1,732 |
Newly issued debt (maturities longer than 90 days) | [3] | 16,214 | 5,180 |
Repayments and other debt reductions (maturities longer than 90 days) | [3] | (1,532) | (755) |
Net dispositions (purchases) of GE shares for treasury | [3] | (2,620) | (17,969) |
Dividends paid to shareowners | [3] | (6,269) | (6,427) |
All other financing activities | [3] | (461) | (143) |
Cash from (used for) financing activities – continuing operations | [3] | 5,501 | (18,382) |
Cash from (used for) financing activities – discontinued operations | [3] | 0 | 0 |
Cash from (used for) financing activities | [3] | 5,501 | (18,382) |
Effect of currency exchange rate changes on cash and equivalents | [3] | 504 | (91) |
Increase (decrease) in cash and equivalents | [3] | 2,311 | 219 |
Cash and equivalents at beginning of year | [3] | 10,525 | 10,372 |
Cash and equivalents at September 30 | [3] | 12,836 | 10,591 |
Less cash and equivalents of discontinued operations at September 30 | [3] | 0 | 0 |
Cash and equivalents of continuing operations at September 30 | [3] | 12,836 | 10,591 |
Financial Services (GE Capital) | |||
Cash flows – operating activities | |||
Net earnings (loss) | (439) | (1,956) | |
Less net earnings (loss) attributable to noncontrolling interests | 5 | (8) | |
Net earnings (loss) attributable to the Company | (443) | (1,948) | |
(Earnings) loss from discontinued operations | 494 | 954 | |
Adjustments to reconcile net earnings (loss) attributable to the Company to cash provided from operating activities | |||
Depreciation and amortization of property, plant and equipment | 1,736 | 1,771 | |
(Earnings) loss from continuing operations retained by GE Capital | [5] | 0 | 0 |
Deferred income taxes | (267) | 1,164 | |
Decrease (increase) in GE current receivables | 0 | 0 | |
Decrease (increase) in inventories | 0 | (15) | |
Increase (decrease) in accounts payable | (97) | 12 | |
Increase (decrease) in GE progress collections | 0 | 0 | |
All other operating activities | [2] | 632 | (35) |
Cash from (used for) operating activities – continuing operations | 2,053 | 1,903 | |
Cash from (used for) operating activities – discontinued operations | (490) | (5,719) | |
Cash from (used for) operating activities | 1,563 | (3,815) | |
Cash flows – investing activities | |||
Additions to property, plant and equipment | (2,422) | (2,719) | |
Dispositions of property, plant and equipment | 3,186 | 2,974 | |
Net decrease (increase) in GE Capital financing receivables | 3,242 | 128 | |
Proceeds from sale of discontinued operations | 1,018 | 53,250 | |
Proceeds from principal business dispositions | 0 | 0 | |
Net cash from (payments for) principal businesses purchased | 0 | 0 | |
All other investing activities | [2] | 3,472 | (6,435) |
Cash from (used for) investing activities – continuing operations | 8,497 | 47,198 | |
Cash from (used for) investing activities – discontinued operations | (2,349) | (12,056) | |
Cash from (used for) investing activities | 6,147 | 35,142 | |
Cash flows – financing activities | |||
Net increase (decrease) in borrowings (maturities of 90 days or less) | 243 | (1,945) | |
Newly issued debt (maturities longer than 90 days) | 420 | 987 | |
Repayments and other debt reductions (maturities longer than 90 days) | (18,215) | (49,745) | |
Net dispositions (purchases) of GE shares for treasury | 0 | 0 | |
Dividends paid to shareowners | (4,164) | (16,234) | |
All other financing activities | (168) | (259) | |
Cash from (used for) financing activities – continuing operations | (21,884) | (67,196) | |
Cash from (used for) financing activities – discontinued operations | 1,905 | 295 | |
Cash from (used for) financing activities | (19,979) | (66,900) | |
Effect of currency exchange rate changes on cash and equivalents | 749 | (78) | |
Increase (decrease) in cash and equivalents | (11,519) | (35,652) | |
Cash and equivalents at beginning of year | 39,033 | 80,506 | |
Cash and equivalents at September 30 | 27,514 | 44,854 | |
Less cash and equivalents of discontinued operations at September 30 | 496 | 2,915 | |
Cash and equivalents of continuing operations at September 30 | $ 27,019 | $ 41,939 | |
[1] | Included a $512 million correction of investing cash flows used for the settlement of derivative instruments classified as operating during the the six months ended June 30, 2017. Therefore, operating cash flows were understated and investing cash flows were overstated during the the six months ended June 30, 2017. | ||
[2] | GE included a $512 million correction of investing cash flows used for the settlement of derivative instruments classified as operating during the the six months ended June 30, 2017. Therefore, operating cash flows were understated and investing cash flows were overstated during the the six months ended June 30, 2017. | ||
[3] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. | ||
[4] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. | ||
[5] | Represents GE Capital earnings/loss from continuing operations attributable to the Company, net of GE Capital dividends paid to GE. |
STATEMENT OF CASH FLOWS (Parent
STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Correction of investing cash flows | $ (2,343) | $ (41,503) | |
Adjustment of investing cash flows used for the settlement of derivative instruments classified as operating | Correction | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Correction of investing cash flows | $ 512 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The accompanying consolidated financial statements represent the consolidation of General Electric Company (the Company) and all companies that we directly or indirectly control, either through majority ownership or otherwise. See Note 1 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2016 that discusses our consolidation and financial statement presentation. As used in this report on Form 10-Q (Report), “GE” represents the adding together of all affiliated companies except GE Capital (GE Capital or Financial Services), whose continuing operations are presented on a one-line basis; GE Capital consists of General Capital Global Holdings, LLC (GECGH) and all of its affiliates; and “Consolidated” represents the adding together of GE and GE Capital with the effects of transactions between the two eliminated. Unless otherwise indicated, we refer to the caption revenues and other income simply as “revenues” throughout this Form 10-Q. We have reclassified certain prior-period amounts to conform to the current-period presentation. Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in millions. Unless otherwise indicated, information in these notes to the consolidated financial statements relates to continuing operations. INTERIM PERIOD PRESENTATION The consolidated financial statements and notes thereto are unaudited. These statements include all adjustments (consisting of normal recurring accruals) that we considered necessary to present a fair statement of our results of operations, financial position and cash flows. The results reported in these consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. It is suggested that these consolidated financial statements be read in conjunction with the financial statements and notes thereto included in our consolidated financial statements of our Annual Report on Form 10-K for the year ended December 31, 2016. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Please refer to Note 1, Basis of Presentation and Summary of Significant Accounting Policies, to the consolidated financial statements of our 2016 Form 10-K Report for the discussion of our significant accounting policies. ACCOUNTING CHANGES On January 1, 2017, we adopted ASU 2015-11, Simplifying the Measurement of Inventory , which was intended to simplify the subsequent measurement of inventory held by an entity not measured using last-in, first-out (LIFO) or retail inventory method. The amendments eliminated the requirement that entities consider the replacement cost of inventory and the net realizable value less a normal profit margin, which was historically used to establish a floor and ceiling for an assessment of market value. The adoption of this standard was immaterial to our financial statements. |
BUSINESSES HELD FOR SALE AND DI
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS | BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE On September 25, 2017, we signed an agreement to sell our Industrial Solutions business within our Power segment with assets of $2,220 million and liabilities of $ 561 million, to ABB for approximately $2,600 million . The transaction is targeted to close in mid-2018. On March 8, 2017, we signed an agreement to sell our Water business within our Power segment to Suez Environnement S.A. (Suez). On September 30, 2017, we completed the sale for consideration of $3,041 million , net of obligations assumed and cash transferred, (including $122 million from sale of receivables originated in our Water business and sold from GE Capital to Suez) and recognized an after-tax gain of $1,872 million in the third quarter of 2017 in the caption “Other income” in our consolidated Statement of Earnings. FINANCIAL INFORMATION FOR ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE (In millions) September 30, 2017 December 31, 2016 Assets Current receivables(a) $ 339 $ 366 Inventories 361 211 Property, plant, and equipment – net 390 632 Goodwill 1,050 212 Other intangible assets – net 130 123 Contract assets 52 125 Other 46 76 Assets of businesses held for sale $ 2,369 $ 1,745 Liabilities Accounts payable $ 219 $ 190 Progress collections and price adjustments accrued 21 141 Other current liabilities 131 133 Non-current compensation and benefits 152 82 Other 38 110 Liabilities of businesses held for sale $ 561 $ 656 (a) Included transactions in our industrial businesses that were made on an arms-length basis with GE Capital, including GE current receivables sold to GE Capital of $ 148 million and $ 117 million at September 30, 2017 and December 31, 2016 , respectively. These intercompany balances included within our held for sale businesses are reported in the GE and GE Capital columns of our financial statements, but are eliminated in deriving our consolidated financial statements. DISCONTINUED OPERATIONS Discontinued operations primarily relate to our financial services businesses as a result of the GE Capital Exit Plan, and also includes the remaining assets of our U.S. mortgage business (WMC). All of these operations were previously reported in the Capital segment. Results of operations, financial position and cash flows for these businesses are separately reported as discontinued operations for all periods presented. We have entered into Transitional Service Agreements (TSA) with and provided certain indemnifications to buyers of GE Capital’s assets. Under the TSAs, GE Capital provides various services for terms generally between 12 and 24 months and receives a level of cost reimbursement from the buyers. See Note 18 for further information about indemnifications. FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Operations Total revenues and other income (loss) $ 35 $ 633 $ 123 $ 2,494 Earnings (loss) from discontinued operations before income taxes $ (191 ) $ 6 $ (603 ) $ (154 ) Benefit (provision) for income taxes(a) 71 278 198 460 Earnings (loss) from discontinued operations, net of taxes $ (120 ) $ 284 $ (404 ) $ 306 Disposal Gain (loss) on disposal before income taxes $ 22 $ (50 ) $ 3 $ (591 ) Benefit (provision) for income taxes(a) (8 ) (339 ) (89 ) (670 ) Gain (loss) on disposal, net of taxes $ 14 $ (389 ) $ (86 ) $ (1,261 ) Earnings (loss) from discontinued operations, net of taxes(b)(c) $ (106 ) $ (105 ) $ (490 ) $ (954 ) (a) GE Capital's total tax benefit (provision) for discontinued operations and disposals included current tax benefit (provision) of $(63) million and $726 million for the three months ended September 30, 2017 and 2016 , respectively, and $(386) million and $(154) million for the nine months ended September 30, 2017 and 2016 , respectively, including current U.S. Federal tax benefit (provision) of $1 million and $678 million for the three months ended September 30, 2017 and 2016 , respectively, and $(518) million and $207 million for the nine months ended September 30, 2017 and 2016, respectively. The deferred tax benefit (provision) was $126 million and $(787) million for the three months ended September 30, 2017 and 2016 , respectively, and $495 million and $(56) million for the nine months ended September 30, 2017 and 2016, respectively. (b) The sum of GE Industrial earnings (loss) from discontinued operations, net of taxes, and GE Capital earnings (loss) from discontinued operations, net of taxes, after adjusting for earnings (loss) attributable to noncontrolling interests related to discontinued operations, is reported within earnings (loss) from discontinued operations, net of taxes, in the GE Industrial column of the Consolidated Statement of Earnings (Loss). (c) Earnings (loss) from discontinued operations attributable to the Company, before income taxes, was $(168) million and $(43) million for the three months ended September 30, 2017 and 2016 , respectively, and $(606) million and $(746) million for the nine months ended September 30, 2017 and 2016, respectively. (In millions) September 30, 2017 December 31, 2016 Assets Cash and equivalents $ 496 $ 1,429 Investment securities 1,131 2,626 Deferred income taxes 969 487 Financing receivables held for sale 3,631 8,547 Other assets 564 1,727 Assets of discontinued operations $ 6,791 $ 14,815 Liabilities Accounts payable 51 164 Borrowings — 2,076 Other liabilities 939 1,918 Liabilities of discontinued operations $ 990 $ 4,158 |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES Substantially all of our investment securities are classified as available-for-sale and comprise mainly investment-grade debt securities supporting obligations to annuitants and policyholders in our run-off insurance operations. We do not have any securities classified as held-to-maturity. September 30, 2017 December 31, 2016 (In millions) Amortized Gross Gross Estimated (a) Amortized Gross Gross Estimated (a) Debt U.S. corporate $ 20,255 $ 3,594 $ (45 ) $ 23,804 $ 20,049 $ 3,081 $ (85 ) $ 23,046 Non-U.S. corporate 5,615 84 (13 ) 5,686 11,917 98 (27 ) 11,987 State and municipal 3,827 506 (49 ) 4,284 3,916 412 (92 ) 4,236 Mortgage and asset-backed 2,808 97 (19 ) 2,886 2,787 111 (37 ) 2,861 Government and agencies 1,769 74 (10 ) 1,833 1,842 160 (26 ) 1,976 Equity (b) 191 13 — 204 154 55 (1 ) 208 Total $ 34,464 $ 4,368 $ (136 ) $ 38,696 $ 40,665 $ 3,917 $ (269 ) $ 44,313 (a) Included $384 million and $137 million of investment securities held by GE at September 30, 2017 and December 31, 2016, respectively, of which $149 million and $86 million are equity securities. (b) Estimated fair values included $107 million and $17 million of trading securities at September 30, 2017 and December 31, 2016, respectively. Net unrealized gains (losses) recorded to earnings related to these securities were $12 million and $1 million for the three months ended and $41 million and $(2) million for the nine months ended September 30, 2017 and 2016, respectively. I nvestments with a fair value of $4,452 million and $4,406 million were classified within Level 3 (significant inputs to the valuation model are unobservable) at September 30, 2017 and December 31, 2016, respectively. The remaining investments are substantially all classified within Level 2 (determined based on significant observable inputs). During the nine months ended September 30, 2017 and 2016, there were no significant transfers into or out of Level 3 . ESTIMATED FAIR VALUE AND GROSS UNREALIZED LOSSES OF AVAILABLE-FOR-SALE INVESTMENT SECURITIES In loss position for Less than 12 months 12 months or more (In millions) Estimated fair value Gross unrealized losses Estimated Gross September 30, 2017 Debt U.S. corporate $ 681 $ (17 ) $ 530 $ (28 ) Non-U.S. corporate 581 (4 ) 3,591 (9 ) State and municipal 125 (2 ) 270 (47 ) Mortgage and asset-backed 821 (9 ) 227 (9 ) Government and agencies 593 (9 ) 257 (1 ) Equity 3 — — — Total $ 2,805 $ (41 ) $ 4,874 $ (95 ) December 31, 2016 Debt U.S. corporate $ 1,692 $ (55 ) $ 359 $ (30 ) Non-U.S. corporate 5,352 (26 ) 14 (1 ) State and municipal 674 (27 ) 158 (64 ) Mortgage and asset-backed 822 (21 ) 132 (16 ) Government and agencies 549 (26 ) — — Equity 9 (1 ) — — Total $ 9,098 $ (157 ) $ 663 $ (111 ) Unrealized losses are not indicative of the amount of credit loss that would be recognized and at September 30, 2017 are primarily due to increases in market yields subsequent to our purchase of the securities. We presently do not intend to sell the vast majority of our debt securities that are in an unrealized loss position and believe that it is not more likely than not that we will be required to sell the vast majority of these securities before anticipated recovery of our amortized cost. The methodologies and significant inputs used to measure the amount of credit loss for our investment securities during 2017 have not changed. Total pre-tax, other-than-temporary impairments on investment securities recognized in earnings were an insignificant amount and $28 million for the nine months ended September 30, 2017 and 2016, respectively. CONTRACTUAL MATURITIES OF INVESTMENT IN AVAILABLE-FOR-SALE DEBT SECURITIES (EXCLUDING MORTGAGE AND ASSET-BACKED SECURITIES) (In millions) Amortized cost Estimated fair value Due Within one year $ 5,342 $ 5,344 After one year through five years 3,577 3,796 After five years through ten years 5,639 6,171 After ten years 16,994 20,395 We expect actual maturities to differ from contractual maturities because borrowers have the right to call or prepay certain obligations. Although we generally do not have the intent to sell any specific securities at the end of the period, in the ordinary course of managing our investment securities portfolio, we may sell securities prior to their maturities for a variety of reasons, including diversification, credit quality, yield and liquidity requirements and the funding of claims and obligations to policyholders. Gross realized gains on available-for-sale investment securities were $54 million and $7 million , and gross realized losses were $(5) million and $(12) million in the three months ended September 30, 2017 and 2016, respectively. Gross realized gains on available-for-sale investment securities were $197 million and $49 million , and gross realized losses were $(9) million and $(52) million in the nine months ended September 30, 2017 and 2016, respectively. Proceeds from investment securities sales and early redemptions by issuers totaled $659 million and $416 million in the three months ended September 30, 2017 and 2016, respectively primarily from sales of U.S. Corporate and Mortgage and asset-backed securities and $2,433 million and $1,283 million in the nine months ended September 30, 2017 and 2016, respectively primarily from sales of U.S. corporate securities and Government and agencies. |
CURRENT RECEIVABLES
CURRENT RECEIVABLES | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
CURRENT RECEIVABLES | CURRENT RECEIVABLES Consolidated(a)(b) GE(c) (In millions) September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 Current receivables $ 26,045 $ 24,935 $ 15,733 $ 13,562 Allowance for losses (1,019 ) (858 ) (1,008 ) (847 ) Total $ 25,026 $ 24,076 $ 14,725 $ 12,715 (a) Included GE industrial customer receivables sold to a GE Capital affiliate and recorded on GE Capital’s balance sheet of $ 11,224 million and $ 12,304 million at September 30, 2017 and December 31, 2016 , respectively. The consolidated total included a deferred purchase price receivable of $ 436 million and $ 483 million at September 30, 2017 and December 31, 2016 , respectively, related to our Receivables Facility. (b) In order to manage the credit exposure, the Company sells additional current receivables to third parties outside the Receivables Facility, substantially all of which are serviced by the Company. The outstanding balance of these current receivables was $ 2,460 million and $ 3,821 million at September 30, 2017 and December 31, 2016 , respectively. Of these balances, $ 1,284 million and $ 2,504 million was sold by GE to GE Capital prior to the sale to third parties at September 30, 2017 and December 31, 2016 , respectively. At September 30, 2017 and December 31, 2016 , our maximum exposure to loss under the limited recourse arrangements is $ 34 million and $ 215 million, respectively. (c) GE current receivables balances at September 30, 2017 and December 31, 2016 , before allowance for losses, included $ 9,912 million and $ 8,927 million, respectively, from sales of goods and services to customers. The remainder of the balances primarily relates to supplier advances, revenue sharing programs and other non-income based tax receivables. RECEIVABLES FACILITY The Company has a $ 3,200 million revolving Receivables Facility under which receivables are sold directly to third-party purchasers. The third-party purchasers have no recourse to other assets of the Company in the event of non-payment by the debtors. Where the purchasing entity is a bank multi-seller commercial paper conduit, assets transferred by other parties to that entity form a majority of the entity’s assets. Upon sale of the receivables, we receive proceeds of cash and a deferred purchase price (DPP). The DPP is an interest in specified assets of the purchasers (the receivables sold by GE Capital) that entitles GE Capital to the residual cash flows of those specified assets. During the nine months ended September 30, 2017 , GE Industrial sold current receivables of $ 15,057 million to GE Capital, which GE Capital sold immediately to third parties under the Receivables Facility. GE Capital continues to service the current receivables for the purchasers. The Company received total cash collections of $ 14,729 million on previously sold current receivables owed to the purchasing entities. The purchasing entities reinvested $ 12,681 million of those collections to purchase newly originated current receivables from the Company and paid $ 461 million to reduce their DPP obligation to the Company. During the nine months ended September 30, 2017 , GE Industrial recognized a loss of $ 100 million resulting from a discount on the sale of these receivables to GE Capital. GE Capital recovered the majority of this loss on the sale of the receivables to third party purchasers. At September 30, 2017 , GE Capital, under the Receivables Facility, serviced $ 2,903 million of transferred receivables that remain outstanding. Given the short-term nature of the underlying receivables, discount rates and prepayments are not factors in determining the value of the DPP. Collections on the DPP are presented within Cash flows from operating activities in the consolidated column in the Statement of Cash Flows. As the performance of the transferred current receivables is similar to the performance of our other current receivables, delinquencies are not expected to be significant. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES (In millions) September 30, 2017 December 31, 2016 Raw materials and work in process $ 13,939 $ 12,636 Finished goods 10,856 8,798 Unbilled shipments 531 536 25,327 21,971 Revaluation to LIFO 521 383 Total inventories $ 25,848 $ 22,354 |
GE CAPITAL FINANCING RECEIVABLE
GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES | GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES FINANCING RECEIVABLES, NET (In millions) September 30, 2017 December 31, 2016 Loans, net of deferred income $ 20,039 $ 21,101 Investment in financing leases, net of deferred income 4,923 4,998 24,962 26,099 Allowance for losses (62 ) (58 ) Financing receivables – net $ 24,900 $ 26,041 We manage our financing receivables portfolio using delinquency and nonaccrual data as key performance indicators. At September 30, 2017 , $718 million ( 2.9% ), $165 million ( 0.7% ) and $317 million ( 1.3% ) of financing receivables were over 30 days past due, over 90 days past due and on nonaccrual, respectively. Of the $317 million of nonaccrual financing receivables at September 30, 2017 , the vast majority are secured by collateral and $271 million are currently paying in accordance with the contractual terms. At December 31, 2016 , $811 million ( 3.1% ), $407 million ( 1.6% ) and $322 million ( 1.2% ) of financing receivables were over 30 days past due, over 90 days past due and on nonaccrual, respectively. The recorded investment in impaired loans at September 30, 2017 and December 31, 2016 was $352 million and $262 million , respectively. The method used to measure impairment for these loans is primarily based on collateral value. At September 30, 2017 , troubled debt restructurings included in impaired loans were $137 million . |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT (In millions) September 30, 2017 December 31, 2016 Original cost $ 91,421 $ 85,875 Less accumulated depreciation and amortization (37,321 ) (35,356 ) Property, plant and equipment – net $ 54,101 $ 50,518 Consolidated depreciation and amortization on property, plant and equipment was $1,397 million and $1,136 million in the three months ended September 30, 2017 and 2016 , respectively and $3,715 million and $3,641 million in the nine months ended September 30, 2017 and 2016 , respectively. |
ACQUISITIONS, GOODWILL AND OTHE
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS | ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS ACQUISITIONS On October 11, 2016 , we announced a plan to acquire LM Wind Power, the Danish maker of rotor blades for approximately $1,700 million. The transaction closed on April 20, 2017. The preliminary purchase price allocation resulted in goodwill of approximately $1,300 million and amortizable intangible assets of approximately $200 million. The allocation of the purchase price will be finalized upon completion of post-closing procedures. In the first quarter of 2017, we acquired the remaining 96% of ServiceMax, a leader in cloud-based field service management solutions, for $ 867 million, net of cash acquired of $ 91 million. Upon gaining control, we fair valued the business including our previously held 4% equity interest. The preliminary purchase price allocation resulted in goodwill of approximately $ 670 million and amortizable intangible assets of approximately $ 280 million. The allocation of the purchase price will be finalized upon completion of post-closing procedures. On September 14, 2016, we acquired the remaining 74% of the software developer Meridium Inc. for cash proceeds of $369 million. Upon gaining control, we fair valued the business including our previously held 26% equity interest. The purchase price allocation resulted in goodwill of approximately $360 million and amortizable intangible assets of approximately $150 million. On May 10, 2016 , we announced the pending acquisition of the heat recovery steam generator (HRSG) business from Doosan Engineering & Construction for $250 million . On August 16, 2016 , we closed on 80% of the HRSG business for approximately $220 million . On May 23, 2017, we closed an additional 15% of the remaining HRSG business for approximately $ 35 million. The business is included in our Power Segment. The agreement to purchase the remaining 5% of the HRSG business was terminated on October 13, 2017. The purchase price allocation resulted in goodwill of approximately $160 million and amortizable intangible assets of approximately $36 million . BAKER HUGHES On July 3, 2017, GE completed the previously announced combination of GE’s Oil & Gas business (GE Oil & Gas) with Baker Hughes Incorporated (Baker Hughes). As part of the transaction, GE contributed GE Oil & Gas and $7,498 million in cash in exchange for an ownership interest of approximately 62.5% in the new combined company. The operating assets of the new combined company are held through a partnership named Baker Hughes, a GE company, LLC (BHGE LLC). GE holds an economic interest of approximately 62.5% in this partnership, and Baker Hughes’ former shareholders hold an ownership interest of approximately 37.5% through a newly NYSE listed corporation, Baker Hughes, a GE company (BHGE), which controls the partnership. In turn, GE holds a controlling, voting interest of approximately 62.5% in BHGE through Class B Common Stock, which grants voting rights but no economic rights. Baker Hughes’ former shareholders received one share of BHGE Class A Common Stock and a special one-time cash dividend of $17.50 per share at closing. Total consideration was $24,798 million , including the $7,498 million cash contribution. The Baker Hughes acquisition has been accounted for as a business combination, using the acquisition method. The net assets of Baker Hughes’ contributed businesses were recorded at their estimated fair value, and GE Oil & Gas continues at its historical or carryover basis. We recorded noncontrolling interest of $ 16,470 million for the approximate 37.5% ownership interest in the combined company held by BHGE’s Class A shareholders. The noncontrolling interest is recorded at fair value for the portion attributable to Baker Hughes and at our historical cost for the portion attributable to GE Oil & Gas. The fair value of the noncontrolling interest associated with the acquired net assets was determined by the publicly traded share price of Baker Hughes at the close of the transaction. The impact of recognizing the noncontrolling interest in GE Oil & Gas resulted in an increase to additional paid in capital of $1,131 million. The tables below present the preliminary fair value of the consideration exchanged and the preliminary allocation of purchase price to the major classes of assets and liabilities of the acquired Baker Hughes business and the associated fair value of preexisting noncontrolling interest related to the acquired net assets of Baker Hughes. The estimated values are not yet final and are subject to change, and the changes could be significant. We will finalize the amounts recognized as soon as possible as we obtain the information necessary to complete the analysis, but no later than one year from the acquisition date. PRELIMINARY PURCHASE PRICE (In millions) July 3, 2017 Cash consideration $ 7,498 Fair value of the Class A Shares in BHGE issued to Baker Hughes shareholders 17,300 Total consideration for Baker Hughes $ 24,798 PRELIMINARY IDENTIFIABLE ASSETS ACQUIRED AND LIABILITIES ASSUMED (In millions) July 3, 2017 Cash and cash equivalents $ 4,133 Accounts receivable 2,378 Inventories 1,975 Property, plant, and equipment - net 4,048 Other intangible assets - net (a) 4,400 All other assets 1,314 Accounts payable (1,115 ) Borrowings (3,373 ) Deferred taxes (b) (825 ) All other liabilities (2,267 ) Total identifiable net assets 10,668 Fair value of existing noncontrolling interest (77 ) Goodwill (c) 14,207 Total allocated purchase price $ 24,798 (a) The estimated fair value of intangible assets and related useful lives in the preliminary purchase price allocation include: (In millions) Estimated fair value Estimated useful life (in years) Trademarks - Baker Hughes $ 2,000 Indefinite life Customer-related 1,300 15 Patents and technology 900 10 Trademarks - Other 200 10 Total $ 4,400 (b) Includes an increase of approximately $974 million primarily related to fair value adjustments to identifiable assets and liabilities (excluding goodwill). (c) The above goodwill represents future economic benefits expected to be recognized from combining the operations of GE Oil & Gas and Baker Hughes, including expected future synergies and operating efficiencies. Goodwill resulting from the acquisition has been allocated to our Oil & Gas reporting units, of which $67 million is deductible for tax purposes. INCOME TAXES BHGE LLC, will be treated as a disregarded entity for U.S. federal income tax purposes and, accordingly, will not incur any material current or deferred U.S. federal income taxes. BHGE LLC’s foreign subsidiaries, however, are expected to incur current and deferred foreign income taxes. At closing, GE and BHGE, entered into a Tax Matters Agreement. The Tax Matters Agreement governs the administration and allocation between the parties of tax liabilities and benefits arising prior to, as a result of, and subsequent to the transaction. GE will be responsible for certain taxes related to the formation of the transaction undertaken by GE and Baker Hughes and their respective subsidiaries. We have assumed approximately $35 million of tax obligations of Baker Hughes related to the formation of the transaction. The Tax Matters Agreement will also provide for the sharing of certain tax benefits arising from the transaction. GE will be entitled to 100% of these tax benefits to the extent that GE has borne certain taxes related to the formation of the transaction. Thereafter, these tax benefits will be shared by GE and BHGE in accordance with their ownership of the partnership, which will initially be approximately 62.5% and approximately 37.5% , respectively. ACQUISITION COSTS During the three and nine months ended September 30, 2017, acquisition costs of $159 million and $310 million , respectively, were expensed as incurred and were reported as selling, general and administrative expenses. UNAUDITED ACTUAL AND PRO FORMA INFORMATION Our consolidated "Revenues and other income", and "Earnings (loss) from continuing operations" from July 3, 2017 through September 30, 2017 includes $2,541 million and $(441) million , respectively, related to the Baker Hughes contributed business. The following unaudited pro forma information has been presented as if the Baker Hughes transaction occurred on January 1, 2016. This information has been prepared by combining the historical results of the Company and historical results of Baker Hughes. The unaudited pro forma combined financial data for all periods presented were adjusted to give effect to proforma events that 1) are directly attributable to the aforementioned transaction, 2) factually supportable, and 3) expected to have a continuing impact on the consolidated results of operations. The unaudited combined pro forma results do not include any incremental cost savings that may result from the integration. The adjustments are based on information available to the Company at this time. Accordingly, the adjustments are subject to change and the impact of such changes may be material. The unaudited combined pro forma information is for informational purposes only. The pro forma information is not necessarily indicative of what the combined company’s results actually would have been had the acquisition been completed as of the beginning of the periods as indicated. In addition, the unaudited pro forma information does not purport to project the future results of the combined company. Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Revenues and other income $ 33,472 $ 31,617 $ 95,353 $ 98,029 Earnings (loss) from continuing operations 1,960 1,603 4,139 3,015 Significant adjustments to the pro forma information above include recognition of non-recurring direct incremental acquisition costs in the nine-month period ended September 30, 2016 and exclusion of those costs from all other periods presented; and the amortization associated with an estimate of the acquired intangible assets. A non-recurring contractually obligated termination fee of $3,500 million ( $3,320 million net of related costs incurred) received by Baker Hughes due to an inability to obtain antitrust related approvals from a prior merger agreement is recognized in the nine months ended September 30, 2016. GOODWILL CHANGES IN GOODWILL BALANCES (In millions) January 1, 2017 Acquisitions Dispositions, Balance at Power $ 26,403 $ 55 $ (1,219 ) $ 25,239 Renewable Energy 2,507 1,503 230 4,240 Oil & Gas 10,363 14,207 315 24,885 Aviation 9,455 17 606 10,077 Healthcare 17,424 50 92 17,566 Transportation 899 — 26 925 Lighting 281 — 10 291 Capital 2,368 — 2 2,370 Corporate 739 722 16 1,476 Total $ 70,438 $ 16,553 $ 78 $ 87,068 Goodwill balances increased by $16,630 million in 2017, primarily as a result of the Baker Hughes transaction, the LM Wind Power and ServiceMax acquisitions and the currency exchange effects of a weaker U.S. dollar, partially offset by the reclassification of our Industrial Solutions business to assets of businesses held for sal e and impairment of our Power Conversion reporting unit. We test goodwill for impairment annually in the third quarter of each year using data as of July 1 of that year. The impairment test consists of two steps: in step one, the carrying value of the reporting unit is compared with its fair value; in step two, which is applied when the carrying value is more than its fair value, the amount of goodwill impairment, if any, is derived by deducting the fair value of the reporting unit’s assets and liabilities from the fair value of its equity, and comparing that amount with the carrying amount of goodwill. We determined fair values for each of the reporting units using the market approach, when available and appropriate, or the income approach, or a combination of both. We assess the valuation methodology based upon the relevance and availability of the data at the time we perform the valuation. If multiple valuation methodologies are used, the results are weighted appropriately. Valuations using the market approach are derived from metrics of publicly traded companies or historically completed transactions of comparable businesses. The selection of comparable businesses is based on the markets in which the reporting units operate giving consideration to risk profiles, size, geography, and diversity of products and services. A market approach is limited to reporting units for which there are publicly traded companies that have the characteristics similar to our businesses. Under the income approach, fair value is determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. We use our internal forecasts to estimate future cash flows and include an estimate of long-term future growth rates based on our most recent views of the long-term outlook for each business. Actual results may differ from those assumed in our forecasts. We derive our discount rates using a capital asset pricing model and analyzing published rates for industries relevant to our reporting units to estimate the cost of equity financing. We use discount rates that are commensurate with the risks and uncertainty inherent in the respective businesses and in our internally developed forecasts. Discount rates used in our reporting unit valuations ranged from 10.0% to 18.0% . During the third quarter of 2017, we performed our annual impairment test of goodwill for all our reporting units. Based on the results of our step one testing, the fair values of each of the GE reporting units exceeded their carrying values except for our Power Conversion reporting unit, within our Power operating segment. The primary factors contributing to a reduction in fair value of this reporting unit were extended downturns in certain of its customer segments, most notably the marine and oil and gas markets, increased pricing and cost pressures in low margin renewable markets, and the delayed introduction of new technologies and products. Therefore, we performed a step two analysis. As a result of this analysis, we recognized a non-cash goodwill impairment loss of $947 million ( $940 million after tax) during the third quarter to write down the carrying values of Power Conversion’s goodwill to its implied fair value of $191 million . The impairment loss was recorded on the Statement of Earnings to Other costs and expenses. After the impairment loss, the fair value of our Power Conversion reporting unit was in excess of its carrying value by approximately 2% . In addition, we identified one reporting unit for which the fair value was not substantially in excess of its carrying value. The Grid Solutions reporting unit within our Power operating segment was formed as a result of the Alstom acquisition in November 2015. Since fair value equaled carrying value at the time of acquisition, this caused the fair value of this reporting unit not to be significantly in excess of its carrying value. In the current annual impairment test, fair value of Grid Solutions was in excess of its carrying value by approximately 3% and, therefore, continues to be not substantially in excess of carrying value. While the goodwill of this reporting unit is not currently impaired, there could be an impairment in the future as a result of changes in certain assumptions. For example, the fair value could be adversely affected and result in an impairment of goodwill if expected synergies of the acquisition with Alstom are not realized or if the reporting unit was not able to execute on customer opportunities, the estimated cash flows are discounted at a higher risk-adjusted rate or market multiples decrease. The goodwill associated with our Grid Solutions reporting unit was $4,418 million , representing approximately 5% of our total goodwill at September 30, 2017. While the fair values of our Oil & Gas reporting units are in excess of their carrying values, the Oilfield Equipment and Oilfield Services reporting unit continues to experience declines in orders, project commencement delays and pricing pressures, which reduced its fair value. To the extent that conditions further deteriorate, the fair value of this reporting unit will continue to decline. We will continue to monitor the oil & gas industry and the impact it may have on this reporting unit. In addition, because of the Baker Hughes acquisition and related integration activities, the composition of our historical reporting units for the Oil & Gas operating segment may change. In the event that any of our reporting units change substantially, we will be required to re-test the reporting units as of the date of the reorganization, re-allocate goodwill based on the relative fair values of the new reporting units, and record any required impairment. Finally, the operating and reporting segments and associated reporting units for BHGE are different than GE’s, as BHGE is a subsidiary and performs its reporting unit assessment one level below its operating segments. As of September 30, 2017, we believe no other goodwill impairment exists, apart from the impairment charge discussed above, and that the remaining goodwill is recoverable for all of the reporting units; however, there can be no assurances that additional goodwill will not be impaired in future periods. Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. It is reasonably possible that the judgments and estimates described above could change in future periods. OTHER INTANGIBLE ASSETS OTHER INTANGIBLE ASSETS - NET (In millions) September 30, 2017 December 31, 2016 Intangible assets subject to amortization $ 19,345 $ 16,336 Indefinite-lived intangible assets(a) 2,090 100 Total $ 21,435 $ 16,436 (a) Indefinite-lived intangible assets principally comprise trademarks and in-process research and development. INTANGIBLE ASSETS SUBJECT TO AMORTIZATION September 30, 2017 December 31, 2016 (In millions) Gross carrying amount Accumulated amortization Net Gross carrying amount Accumulated amortization Net Customer-related $ 10,903 $ (2,909 ) $ 7,994 $ 9,172 $ (2,408 ) $ 6,764 Patents and technology 10,548 (3,646 ) 6,902 8,693 (3,325 ) 5,368 Capitalized software 8,268 (5,064 ) 3,204 7,652 (4,538 ) 3,114 Trademarks 1,426 (408 ) 1,018 1,165 (307 ) 858 Lease valuations 160 (76 ) 84 143 (59 ) 84 Present value of future profits(a) 709 (709 ) — 684 (684 ) — All other 245 (101 ) 144 273 (124 ) 149 Total $ 32,258 $ (12,912 ) $ 19,345 $ 27,781 $ (11,444 ) $ 16,336 (a) Balances at September 30, 2017 and December 31, 2016 include adjustments of $ 221 million and $ 241 million, respectively, to the present value of future profits in our run-off insurance activities to reflect the effects that would have been recognized had the related unrealized investment securities holding net gains actually been realized. Intangible assets subject to amortization increased by $ 3,009 million in the nine months ended September 30, 2017 , primarily as a result of the Baker Hughes transaction, coupled with the LM Wind Power and ServiceMax acquisitions, partially offset by amortization. GE amortization expense related to intangible assets subject to amortization was $ 522 million and $ 405 million in the three months ended September 30, 2017 and 2016 , respectively, and $ 1,424 million and $1,268 million for the nine months ended September 30, 2017 and 2016 , respectively. GE Capital amortization expense related to intangible assets subject to amortization was $ 16 million and $ 33 million in the three months ended September 30, 2017 and 2016 , respectively, and $ 50 million and $ 103 million for the nine months ended September 30, 2017 and 2016 , respectively. |
CONTRACT ASSETS
CONTRACT ASSETS | 9 Months Ended |
Sep. 30, 2017 | |
Contractors [Abstract] | |
CONTRACT ASSETS | CONTRACT ASSETS (In millions) September 30, 2017 December 31, 2016 GE Revenues in excess of billings Long-term product service agreements(a) $ 15,358 $ 12,752 Long-term equipment contract revenues(b) 7,187 5,859 Total revenues in excess of billings 22,545 18,611 Deferred inventory costs(c) 3,818 3,349 Non-recurring engineering costs(d) 2,345 2,185 Other 1,101 1,018 Contract assets $ 29,809 $ 25,162 (a) Long-term product service agreement balances are presented net of related billings in excess of revenues of $2,595 million and $3,750 million at September 30, 2017 and December 31, 2016 , respectively. (b) Reflects revenues earned in excess of billings on our long-term contracts to construct technically complex equipment (such as gas power systems). (c) Represents cost deferral for shipped goods (such as components for wind turbine assembly within our Renewable Energy segment) and other costs for which the revenue recognition criteria has not yet been met. (d) Includes costs incurred prior to production (such as requisition engineering) for long-term equipment production contracts, primarily within our Aviation segment, which are allocated ratably to each unit produced. Revenues in excess of billings increased $2,606 million and $1,328 million for our long-term service agreements and long-term equipment contracts, respectively. The increase in our long-term service agreements is due to a $1,930 million cumulative catch up adjustment driven by lower forecasted costs to complete these contracts as well as increased forecasted revenue and $676 million due to the timing of revenue recognized for work performed relative to billings and collections. Revenue in excess of billings for our long-term equipment contracts increased $1,328 million primarily due to the timing of revenue recognized for work performed relative to the timing of billings and collections. The remaining increase in contract assets of $712 million is primarily due an increase in deferred inventory costs and non-recurring engineering costs. The change in estimated profitability within our long-term product service agreements in our Power, Aviation, Transportation, and Oil & Gas segments resulted in an adjustment of $649 million and $588 million for the three months ended September 30, 2017 and 2016, respectively, and $1,930 million and $1,714 million for the nine months ended September 30, 2017 and 2016, respectively, driven primarily by cost execution and increased productivity. |
BORROWINGS
BORROWINGS | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS (In millions) September 30, 2017 December 31, 2016 Short-term borrowings GE Commercial paper $ 2,000 $ 1,500 Current portion of long-term borrowings(d) 14,623 17,109 Other 2,125 1,874 Total GE short-term borrowings(a) 18,748 20,482 GE Capital U.S. Commercial paper 5,021 5,002 Current portion of long-term borrowings(b) 5,627 6,517 Intercompany payable to GE(c) 9,971 11,696 Other 561 229 Total GE Capital short-term borrowings 21,179 23,443 Eliminations(c) (11,800 ) (13,212 ) Total short-term borrowings $ 28,127 $ 30,714 Long-term borrowings GE Senior notes(d) $ 60,314 $ 54,396 Subordinated notes 2,938 2,768 Subordinated debentures(f) 382 719 Other 1,463 928 Total GE long-term borrowings(a) 65,097 58,810 GE Capital Senior notes 41,467 44,131 Subordinated notes 214 236 Intercompany payable to GE(e) 32,623 47,084 Other(b) 1,347 1,992 Total GE Capital long-term borrowings 75,651 93,443 Eliminations(e) (33,191 ) (47,173 ) Total long-term borrowings $ 107,557 $ 105,080 Non-recourse borrowings of consolidated securitization entities(g) $ 708 $ 417 Total borrowings $ 136,392 $ 136,210 (a) Excluding assumed debt of GE Capital, the total amount of GE borrowings was $41,252 million and $20,512 million at September 30, 2017 and December 31, 2016 , respectively. (b) Included $1,653 million and $2,665 million of funding secured by aircraft and other collateral at September 30, 2017 and December 31, 2016 , respectively, of which $477 million and $1,419 million is non-recourse to GE Capital at September 30, 2017 and December 31, 2016 , respectively. (c) I ncluded a reduction of zero and $1,329 million for short-term intercompany loans from GE Capital to GE at September 30, 2017 and December 31, 2016 , respectively, which bear the right of offset against amounts owed under the assumed debt agreement. Excluding intercompany loans, total short-term assumed debt was $9,971 million and $13,024 million at September 30, 2017 and December 31, 2016 , respectively. The remaining short-term loan balance was paid in January 2017. (d) Current portion of long-term borrowings and senior notes at September 30, 2017 included $202 million and $2,923 million , respectively, of borrowings issued by BHGE. (e) Included a reduction of $7,271 million and zero for long-term intercompany loans from GE Capital to GE at September 30, 2017 and December 31, 2016 , respectively, which bear the right of offset against amounts owed under the assumed debt agreement. Excluding intercompany loans, total long-term assumed debt was $39,893 million and $47,084 million at September 30, 2017 and December 31, 2016 , respectively. The $7,271 million of intercompany loans collectively have a weighted average interest rate of 3.5% and term of approximately 15 years. (f) Comprises subordinated debentures which constitute the sole assets of trusts that have issued trust preferred securities and where GE owns 100% of the common securities of the trusts. Obligations associated with these trusts are unconditionally guaranteed by GE. (g) Included $222 million and $320 million of current portion of long-term borrowings at September 30, 2017 and December 31, 2016 , respectively. See Note 17. During the second quarter of 2017, GE completed issuances of €8,000 million senior unsecured debt, composed of €1,750 million of 0.375% Notes due 2022, €2,000 million of 0.875% Notes due 2025, €2,250 million of 1.50% Notes due 2029 and €2,000 million of 2.125% Notes due 2037. On April 10, 2015, GE provided a full and unconditional guarantee on the payment of the principal and interest on all tradable senior and subordinated outstanding long-term debt securities and all commercial paper issued or guaranteed by GE Capital. $92,537 million of such debt was assumed by GE on December 2, 2015 upon its merger with GE Capital resulting in an intercompany payable to GE. At September 30, 2017 , the Guarantee applies to $44,526 million of GE Capital debt. See Notes 16 and 21 for additional information about borrowings and associated swaps. |
INVESTMENT CONTRACTS, INSURANCE
INVESTMENT CONTRACTS, INSURANCE LIABILITIES AND INSURANCE ANNUITY BENEFITS | 9 Months Ended |
Sep. 30, 2017 | |
Insurance [Abstract] | |
INVESTMENT CONTRACTS, INSURANCE LIABILITIES AND INSURANCE ANNUITY BENEFITS | INVESTMENT CONTRACTS, INSURANCE LIABILITIES AND INSURANCE ANNUITY BENEFITS Insurance and investment contract liabilities comprise mainly obligations to policyholders and annuitants in our run-off insurance activities. (In millions) September 30, 2017 December 31, 2016 Future policy benefit reserves(a) Life insurance and other contracts $ 10,125 $ 10,053 Long-term care insurance contracts 9,031 8,688 19,156 18,741 Investment contracts 2,606 2,813 Claim reserves(b) 4,927 4,606 Unearned premiums and other 416 386 27,105 26,546 Eliminations (508 ) (460 ) Total $ 26,597 $ 26,086 (a) Future policy benefit reserves are accounted for mainly by a net-level premium method using estimated yields generally ranging from 3.0% to 8.5% in both 2017 and 2016. (b) Includes $3,431 million and $3,129 million related to long term-care insurance contracts at September 30, 2017 and December 31, 2016, respectively. Future policy benefit reserves represent the present value of such benefits less the present value of future net premiums and are based on actuarial assumptions established at the time the policies were issued or acquired. These assumptions include, but are not limited to interest rates, health care experience (including type and cost of care), mortality, and the length of time a policy will remain in force. Our annual premium deficiency testing assesses the adequacy of future policy benefit reserves, net of capitalized acquisition costs using current assumptions. Should the net liability for future policy benefits plus the present value of expected future premiums be insufficient to provide for the present value of expected future policy benefits and expenses, we would be required to reduce remaining capitalized acquisition costs and, to the extent a shortfall still exists, increase our existing future policy benefit reserves. We have recently experienced elevated claim experience for a portion of our long-term care insurance contracts and are conducting a comprehensive review of premium deficiency assumptions across all insurance contracts, including a reassessment of future claim projections for long-term care contracts that will be incorporated within our annual test of future policy benefit reserves for premium deficiencies in the fourth quarter of 2017. We would record a charge to earnings for any premium deficiencies in the fourth quarter of 2017 upon completion of this review. Claim reserves are established when a claim is incurred or is estimated to have been incurred and represents our best estimate of the ultimate obligations for future claim payments and claim adjustment expenses. Key inputs include actual known facts about the claims, such as the benefits available and cause of disability of the claimant, as well as assumptions derived from our actual historical experience and expected future changes in experience factors. Claim reserves are evaluated periodically for potential changes in loss estimates with the support of qualified actuaries and any changes are recorded in the period in which they are determined. When insurance affiliates cede insurance risk to third parties, such as reinsurers, they are not relieved of their primary obligation to policyholders. When losses on ceded risks give rise to claims for recovery, we establish allowances for probable losses on such receivables from reinsurers as required. Reinsurance recoverables are included in the caption “Other receivables” on our Consolidated Statement of Financial Position, and amounted to $2,182 million and $2,038 million at September 30, 2017 and December 31, 2016 , respectively. We recognize reinsurance recoveries as a reduction of the Consolidated Statement of Earnings caption “Investment contracts, insurance losses and insurance annuity benefits.” Reinsurance recoveries were $104 million and $339 million for the three and nine months ended September 30, 2017, respectively, and $78 million and $225 million for the three and nine months ended September 30, 2016, respectively. See Note 1 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2016 for further information. |
POSTRETIREMENT BENEFIT PLANS
POSTRETIREMENT BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
POSTRETIREMENT BENEFIT PLANS | POSTRETIREMENT BENEFIT PLANS We sponsor a number of pension and retiree health and life insurance benefit plans. Principal pension plans are the GE Pension Plan and the GE Supplementary Pension Plan. Principal retiree benefit plans provide health and life insurance benefits to certain eligible participants and these participants share in the cost of the healthcare benefits. Other pension plans include the U.S. and non-U.S. pension plans with pension assets or obligations greater than $50 million . Smaller pension plans and other retiree benefit plans are not material individually or in the aggregate. EFFECT ON OPERATIONS OF PENSION PLANS Principal pension plans Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Service cost for benefits earned $ 267 $ 307 $ 810 $ 913 Prior service cost amortization 73 76 218 228 Expected return on plan assets (847 ) (837 ) (2,545 ) (2,507 ) Interest cost on benefit obligations 715 736 2,144 2,205 Net actuarial loss amortization 702 612 2,109 1,836 Curtailment loss (gain) — — 43 (a) (1 ) Pension plans cost $ 910 $ 894 $ 2,779 $ 2,674 (a) Curtailment loss resulting from our intent to sell the Industrial Solutions business within our Power segment. Other pension plans Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Service cost for benefits earned $ 156 $ 106 $ 430 $ 337 Prior service credit amortization (2 ) — (4 ) (1 ) Expected return on plan assets (324 ) (264 ) (919 ) (786 ) Interest cost on benefit obligations 158 172 445 512 Net actuarial loss amortization 110 68 320 197 Curtailment loss 11 — 11 (a) — Pension plans cost $ 109 $ 82 $ 283 $ 259 (a) Curtailment loss resulting from a Canadian manufacturing plant closure. EFFECT ON OPERATIONS OF PRINCIPAL RETIREE BENEFIT PLANS Principal retiree benefit plans Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Service cost for benefits earned $ 25 $ 32 $ 77 $ 84 Prior service credit amortization (42 ) (41 ) (128 ) (123 ) Expected return on plan assets (9 ) (11 ) (27 ) (33 ) Interest cost on benefit obligations 55 62 168 188 Net actuarial gain amortization (20 ) (12 ) (61 ) (39 ) Curtailment loss — — 3 (a) — Retiree benefit plans cost $ 9 $ 30 $ 32 $ 77 (a) Curtailment loss resulting from our intent to sell the Industrial Solutions business within our Power segment. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our effective income tax rates were (7.9)% and 4.9% during the nine months ended 2017 and 2016, respectively. The rate for 2017 benefited from the tax difference on global activities, the tax rate on the disposition of the Water business and U.S. business credits and for 2016 from a deductible stock loss and U.S. business credits. In the nine months ended 2017, these decreases were partially offset by the non-deductible impairment of goodwill associated with the Power Conversion business and by an adjustment to bring the nine-month tax rate in line with the higher expected full-year rate. In the nine months ended 2016, there was a further decrease to bring the nine-month tax rate in line with the lower expected full-year rate. In the ordinary course of business, there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. UNRECOGNIZED TAX BENEFITS (In millions) September 30, 2017 December 31, 2016 Unrecognized tax benefits $ 5,281 $ 4,692 Portion that, if recognized, would reduce tax expense and effective tax rate(a) 3,224 2,886 Accrued interest on unrecognized tax benefits 789 615 Accrued penalties on unrecognized tax benefits 157 118 Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months 0-800 0-600 Portion that, if recognized, would reduce tax expense and effective tax rate(a) 0-700 0-500 (a) Some portion of such reduction may be reported as discontinued operations. The increases for the period ended September 30, 2017 primarily relate to preliminary estimates of uncertain taxes for entities consolidated as part of the Baker Hughes transaction. The Internal Revenue Service (IRS) is currently auditing our consolidated U.S. income tax returns for 2012 - 2013 and 2014-2015. In addition, certain other U.S. tax deficiency issues and refund claims for previous years are still unresolved. It is reasonably possible that a portion of the unresolved items could be resolved during the next 12 months, which could result in a decrease in our balance of "unrecognized tax benefits" - that is, the aggregate tax effect of differences between tax return positions and the benefits recognized in our financial statements. We believe that there are no other jurisdictions in which the outcome of unresolved issues or claims is likely to be material to our results of operations, financial position or cash flows. We further believe that we have made adequate provision for all income tax uncertainties. |
SHAREOWNERS' EQUITY
SHAREOWNERS' EQUITY | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
SHAREOWNERS' EQUITY | SHAREOWNERS’ EQUITY ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Investment securities Beginning balance $ 866 $ 1,077 $ 674 $ 460 Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes of $45, $48, $204 and $352 54 97 363 675 Reclassifications from OCI – net of deferred taxes of $(17), $5, $(78) and $36 (32 ) 1 (150 ) 40 Other comprehensive income (loss)(a) 21 97 213 715 Less OCI attributable to noncontrolling interests 1 (2 ) 1 (1 ) Ending balance $ 887 $ 1,176 $ 887 $ 1,176 Currency translation adjustments (CTA) Beginning balance $ (5,481 ) $ (5,448 ) $ (6,816 ) $ (5,499 ) OCI before reclassifications – net of deferred taxes of $(407), $5, $(648) and $222 710 (280 ) 1,463 (138 ) Reclassifications from OCI – net of deferred taxes of $2, $(6), $(538) and $74 (196 ) 85 391 1 Other comprehensive income (loss)(a) 513 (194 ) 1,854 (138 ) Less OCI attributable to noncontrolling interests 125 0 131 6 Ending balance $ (5,092 ) $ (5,643 ) $ (5,092 ) $ (5,643 ) Cash flow hedges Beginning balance $ 22 $ (51 ) $ 12 $ (80 ) OCI before reclassifications – net of deferred taxes of $55, $(12), $53 and $(17) 175 (21 ) 239 (61 ) Reclassifications from OCI – net of deferred taxes of $(28), $6, $(37) and $7 (75 ) 52 (129 ) 121 Other comprehensive income (loss)(a) 100 30 109 60 Less OCI attributable to noncontrolling interests 3 — 3 — Ending balance $ 119 $ (21 ) $ 119 $ (21 ) Benefit plans Beginning balance $ (10,860 ) $ (10,476 ) $ (12,469 ) $ (11,410 ) Prior service credit (costs) - net of deferred taxes of $0, $0, $0 and $5 — — — 23 Net actuarial gain (loss) – net of deferred taxes of $(49), $49, $84 and $6 (132 ) 83 367 71 Net curtailment/settlement - net of deferred taxes of $3, $0, $19 and $0 8 — 38 (1 ) Prior service cost amortization – net of deferred taxes of $17, $22, $55 and $63 13 12 34 45 Net actuarial loss amortization – net of deferred taxes of $255, $216, $759 and $649 536 453 1,595 1,343 Other comprehensive income (loss)(a) 423 548 2,032 1,481 Less OCI attributable to noncontrolling interests (1 ) 6 (1 ) 5 Ending balance $ (10,436 ) $ (9,934 ) $ (10,436 ) $ (9,934 ) Accumulated other comprehensive income (loss) at September 30 $ (14,523 ) $ (14,422 ) $ (14,523 ) $ (14,422 ) (a) Total other comprehensive income (loss) was $1,058 million and $481 million in the three months ended September 30, 2017 and 2016 , respectively, and $4,209 million and $2,117 million in the nine months ended September 30, 2017 and 2016 respectively. RECLASSIFICATION OUT OF AOCI Three months ended Nine months ended September 30 September 30 (In millions) 2017 2016 2017 2016 Statement of Earnings caption Available-for-sale securities Gains (losses) on securities $ 49 $ (6 ) $ 228 $ (76 ) Total revenues and other income(a) Income taxes (17 ) 5 (78 ) 36 Benefit (provision) for income taxes(b) Net of tax $ 32 $ (1 ) $ 150 $ (40 ) Currency translation adjustments Gains (losses) on dispositions $ 194 $ (79 ) $ 147 $ (74 ) Total revenues and other income(c) Income taxes 2 (6 ) (538 ) 74 Benefit (provision) for income taxes(d) Net of tax $ 196 $ (85 ) $ (391 ) $ (1 ) Cash flow hedges Gains (losses) on interest rate derivatives $ (6 ) $ (12 ) $ (21 ) $ (67 ) Interest and other financial charges Foreign exchange contracts 98 (43 ) 176 (47 ) (e) Other 12 (3 ) 13 (14 ) (f) Total before tax 104 (57 ) 167 (128 ) Income taxes (28 ) 6 (37 ) 7 Benefit (provision) for income taxes Net of tax $ 75 $ (52 ) $ 129 $ (121 ) Benefit plan items Curtailment gain (loss) $ (11 ) $ — $ (57 ) $ 1 (g) Amortization of prior service cost (30 ) (34 ) (89 ) (108 ) (g) Amortization of actuarial gains (losses) (791 ) (669 ) (2,354 ) (1,992 ) (g) Total before tax (832 ) (703 ) (2,500 ) (2,099 ) Income taxes 275 238 833 712 Benefit (provision) for income taxes Net of tax $ (557 ) $ (465 ) $ (1,667 ) $ (1,387 ) Total reclassification adjustments (net of tax) $ (254 ) $ (602 ) $ (1,779 ) $ (1,548 ) (h) (a) Included insignificant amount s for the three months ended September 30, 2017 and 2016 , and an insignificant amount and $(72) million for the nine months ended September 30, 2017 and 2016, respectively in earnings (loss) from discontinued operations, net of taxes. (b) Included an insignificant amount and $3 million for the three months ended September 30, 2017 and 2016 , and an insignificant amount and $34 million for the nine months ended September 30, 2017 and 2016 respectively in earnings (loss) from discontinued operations, net of taxes. (c) Included zero and $(79) million for the three months ended September 30, 2017 and 2016 , and $32 m illion and $(8) million for the nine months ended September 30, 2017 and 2016 respectively in earnings (loss) from discontinued operations, net of taxes. (d) Included zero and $(7) million for the three months ended September 30, 2017 and 2016 , and $(541) million and $73 million for the nine months ended September 30, 2017 and 2016 respectively in earnings (loss) from discontinued operations, net of taxes (e) Primarily includes $105 million and $(30) million in GE Capital revenues from services and $(8) million and $(13) million in interest and other financial charges in the three months ended September 30, 2017 and 2016 , respectively and $206 million and $1 million in GE Capital revenues from services and $(30) million and $(48) million in interest and other financial charges in the nine months ended September 30, 2017 and 2016, respectively. (f) Primarily recorded in costs and expenses. (g) Curtailment gain (loss), amortization of prior service cost and actuarial gains and losses out of AOCI are included in the computation of net periodic pension costs. See Note 12 for further information. (h) Included $146 million after-tax reclassification of AOCI to additional paid in capital as a result of recognition of noncontrolling interest in GE Oil & Gas as part of Baker Hughes transaction for the three and nine months ended September 30, 2017. NONCONTROLLING INTERESTS Noncontrolling interests in equity of consolidated affiliates include common shares in consolidated affiliates and preferred stock issued by our affiliates. CHANGES TO NONCONTROLLING INTERESTS Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Beginning balance $ 1,634 $ 1,693 $ 1,663 $ 1,864 Net earnings (loss) (93 ) 6 (73 ) (62 ) Dividends (99 ) (25 ) (130 ) (47 ) Dispositions (77 ) (53 ) (85 ) (94 ) Other (including AOCI)(a)(b)(c) 16,582 42 16,572 1 Ending balance at September 30 $ 17,947 $ 1,663 $ 17,947 $ 1,663 (a) Includes research & development partner funding arrangements and acquisitions. (b) 2016 included $(123) million for deconsolidation of investment funds managed by GE Asset Management (GEAM) upon the adoption of ASU 2015-02, Amendments to the Consolidation Analysis, and prior to the July 1, 2016 sale of GEAM. (c) 2017 includes $16,470 million related to Baker Hughes transaction. See Note 8 for further information. REDEEMABLE NONCONTROLLING INTERESTS Redeemable noncontrolling interests presented in our Statement of Financial Position include common shares issued by our affiliates that are redeemable at the option of the holder of those interests. As part of the Alstom acquisition, we formed three joint ventures with Alstom in grid technology, renewable energy, and global nuclear and French steam power. Noncontrolling interests in these joint ventures hold certain redemption rights. These joint ventures and the associated redemption rights are discussed in Note 8 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016. Our retained earnings is adjusted for subsequent changes in the redemption value of the noncontrolling interest in these entities to the extent that the redemption value exceeds the carrying amount of the noncontrolling interest. CHANGES TO REDEEMABLE NONCONTROLLING INTERESTS Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Beginning balance $ 3,193 $ 3,070 $ 3,025 $ 2,972 Net earnings (loss) (49 ) (82 ) (158 ) (221 ) Dividends (12 ) (8 ) (22 ) (17 ) Redemption value adjustment 63 68 177 178 Other 248 3 419 138 Ending balance at September 30(a) $ 3,441 $ 3,051 $ 3,441 $ 3,051 (a) Included $3,106 million and $2,942 million related to the Alstom joint ventures at September 30, 2017 and 2016, respectively. OTHER Dividends from GE Capital to GE totaled zero and $5,050 million in the three months ended September 30, 2017 and 2016, respectively and $4,105 million , including cash dividends of $4,016 million, and $16,050 million in the nine months ended September 30, 2017 and 2016, respectively. Dividends on GE preferred stock totaled $36 million and $33 million in the three months ended September 30, 2017 and 2016, respectively, and $252 million , including cash dividends of $147 million and $474 million, including cash dividends of $184 million in the nine months ended September 30, 2017 and 2016, respectively. Dividends on GE preferred stock are payable semi-annually, in June and December, and accretion is recorded on a quarterly basis. |
EARNINGS PER SHARE INFORMATION
EARNINGS PER SHARE INFORMATION | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE INFORMATION | EARNINGS PER SHARE INFORMATION Three months ended September 30 2017 2016 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Amounts attributable to the Company: Consolidated Earnings from continuing operations for per-share calculation(a)(b) $ 1,935 $ 1,935 $ 2,127 $ 2,127 Preferred stock dividends (36 ) (36 ) (33 ) (33 ) Earnings from continuing operations attributable to common shareowners for per-share calculation(a)(b) $ 1,899 $ 1,899 $ 2,094 $ 2,094 Loss from discontinued operations for per-share calculation(a)(b) (109 ) (109 ) (100 ) (100 ) Net earnings attributable to GE common shareowners for per-share calculation(a)(b) $ 1,794 $ 1,794 $ 1,991 $ 1,991 Average equivalent shares Shares of GE common stock outstanding 8,665 8,665 8,904 8,904 Employee compensation-related shares (including stock options) 67 — 112 — Total average equivalent shares 8,732 8,665 9,016 8,904 Per-share amounts Earnings from continuing operations $ 0.22 $ 0.22 $ 0.23 $ 0.24 Loss from discontinued operations (0.01 ) (0.01 ) (0.01 ) (0.01 ) Net earnings 0.21 0.21 0.22 0.22 Nine months ended September 30 2017 2016 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Amounts attributable to the Company: Consolidated Earnings from continuing operations for per-share calculation(a)(b) $ 4,336 $ 4,336 $ 6,110 $ 6,110 Preferred stock dividends (252 ) (252 ) (474 ) (474 ) Earnings from continuing operations attributable to common shareowners for per-share calculation(a)(b) $ 4,084 $ 4,084 $ 5,636 $ 5,636 Loss from discontinued operations for per-share calculation(a)(b) (507 ) (507 ) (956 ) (956 ) Net earnings attributable to GE common shareowners for per-share calculation(a)(b) $ 3,588 $ 3,587 $ 4,680 $ 4,680 Average equivalent shares Shares of GE common stock outstanding 8,689 8,689 9,096 9,096 Employee compensation-related shares (including stock options) 85 — 105 — Total average equivalent shares 8,774 8,689 9,201 9,096 Per-share amounts Earnings from continuing operations $ 0.47 $ 0.47 $ 0.61 $ 0.62 Loss from discontinued operations (0.06 ) (0.06 ) (0.10 ) (0.11 ) Net earnings 0.41 0.41 0.51 0.51 (a) Our unvested restricted stock unit awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities. For the three months ended September 30, 2017 pursuant to the two-class method, as a result of excess dividends in respect to the current period earnings, losses were not allocated to the participating securities. For the three months ended September 30, 2016 , participating securities are included in the computation of earnings per share pursuant to the two-class method and the application of this treatment had an insignificant effect. For the nine months ended September 30, 2017 and 2016 , pursuant to the two-class method, as a result of excess dividends in respect to the current period earnings, losses were not allocated to the participating securities. (b) Included an insignificant amount of dividend equivalents in each of the periods presented. F or the three months ended September 30, 2017 and 2016 , approximately 82 million and 15 million of outstanding stock awards were not included in the computation of diluted earnings per share because their effect was antidilutive. F or the nine months ended September 30, 2017 and 2016 , approximately 48 million and 24 million of outstanding stock awards were not included in the computation of diluted earnings per share because their effect was antidilutive. Earnings per share amounts are computed independently for earnings from continuing operations, loss from discontinued operations and net earnings. As a result, the sum of per-share amounts from continuing operations and discontinued operations may not equal the total per-share amounts for net earnings. |
FINANCIAL INSTRUMENTS AND NON-R
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS The following table provides information about assets and liabilities not carried at fair value. The table excludes finance leases and non-financial assets and liabilities. Substantially all of the assets discussed below are considered to be Level 3. The vast majority of our liabilities’ fair value can be determined based on significant observable inputs and thus considered Level 2. Few of the instruments are actively traded and their fair values must often be determined using financial models. Realization of the fair value of these instruments depends upon market forces beyond our control, including marketplace liquidity. September 30, 2017 December 31, 2016 (In millions) Carrying Estimated Carrying Estimated GE Assets Investments and notes receivable $ 1,337 $ 1,404 $ 1,526 $ 1,595 Liabilities Borrowings(a)(b) 33,982 35,180 19,184 19,923 Borrowings (debt assumed)(a)(c) 49,864 56,894 60,109 66,998 GE Capital Assets Loans 19,994 20,069 21,060 20,830 Other commercial mortgages 1,490 1,576 1,410 1,472 Loans held for sale 1,063 1,063 473 473 Other financial instruments(d) 115 161 121 150 Liabilities Borrowings(a)(e)(f)(g) 54,945 59,327 58,523 62,024 Investment contracts 2,606 3,057 2,813 3,277 (a) See Note 10. (b) Included $ 230 million and $ 115 million of accrued interest in estimated fair value at September 30, 2017 and December 31, 2016 , respectively. (c) Included $ 575 million and $ 803 million of accrued interest in estimated fair value at September 30, 2017 and December 31, 2016 , respectively. (d) Principally comprises cost method investments. (e) Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at September 30, 2017 and December 31, 2016 would have been reduced by $ 2,604 million and $ 2,397 million, respectively. (f) Included $ 764 million and $ 775 million of accrued interest in estimated fair value at September 30, 2017 and December 31, 2016 , respectively. (g) Excluded $ 42,593 million and $ 58,780 million of net intercompany payable to GE at September 30, 2017 and December 31, 2016 , respectively. NOTIONAL AMOUNTS OF LOAN COMMITMENTS (In millions) September 30, 2017 December 31, 2016 Ordinary course of business lending commitments(a) $ 1,729 $ 687 Unused revolving credit lines 232 238 (a) Excluded investment commitments of $ 451 million and $ 522 million at September 30, 2017 and December 31, 2016 , respectively. NON-RECURRING FAIR VALUE MEASUREMENTS The following table represents non-recurring fair value amounts (as measured at the time of the adjustment) for those assets remeasured to fair value on a non-recurring basis during the fiscal year and still held at September 30, 2017 and December 31, 2016. Remeasured during Remeasured during (In millions) Level 2 Level 3 Level 2 Level 3 Financing receivables $ — $ 10 $ — $ 30 Cost and equity method investments — 60 — 103 Long-lived assets 277 743 17 1,055 Goodwill $ — $ 191 $ — $ — Total $ 277 $ 1,004 $ 17 $ 1,189 The following table represents the fair value adjustments to assets measured at fair value on a non-recurring basis and still held at September 30, 2017 and 2016 . Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Financing receivables $ (1 ) $ — $ (1 ) $ (14 ) Cost and equity method investments (58 ) (2 ) (89 ) (95 ) Long-lived assets (671 ) (21 ) (712 ) (161 ) Goodwill $ (947 ) $ — $ (947 ) $ — Total $ (1,676 ) $ (24 ) $ (1,748 ) $ (270 ) LEVEL 3 MEASUREMENTS - SIGNIFICANT UNOBSERVABLE INPUTS (Dollars in millions) Fair value Valuation technique Unobservable inputs Range September 30, 2017 Non-recurring fair value measurements Cost and equity method investments $ 51 Income approach Discount rate(a) 9.0%-40.0%(13.9)% Long-lived assets 508 Income approach Discount rate(a) 2.7%-17.0% (7.2%) December 31, 2016 Non-recurring fair value measurements Financing receivables $ 30 Income approach Discount rate(a) 2.5%-30.0% (20.3%) Cost and equity method investments 94 Income approach, Discount rate(a) 9.0%-30.0% (11.8%) Long-lived assets 683 Income approach Discount rate(a) 2.5%-20.0% (10.4%) Discount rates are determined based on inputs that market participants would use when pricing investments, including credit and liquidity risk. An increase in the discount rate would result in a decrease in the fair value. At September 30, 2017 and December 31, 2016 , non-recurring measurements of $252 million and $379 million , respectively, are valued using non-binding broker quotes or other third-party sources. At September 30, 2017 and December 31, 2016 , non-recurring fair value measurements were individually insignificant and utilize a number of different unobservable inputs not subject to meaningful aggregation. DERIVATIVES AND HEDGING FORMS OF HEDGING In this section we explain the hedging methods we use and their effects on our financial statements. Cash flow hedges – We use cash flow hedging primarily to reduce or eliminate the effects of foreign exchange rate changes on purchase and sale contracts in our industrial businesses and to convert foreign currency debt that we have issued in our financial services business back to our functional currency. As part of our ongoing effort to reduce borrowings, we may repurchase debt that was in a cash flow hedge accounting relationship. At the time of determining that the debt cash flows are probable of not occurring any related OCI will be released to earnings. FINANCIAL STATEMENT EFFECTS - CASH FLOW HEDGES Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Balance sheet changes Fair value of derivatives increase (decrease) $ 225 $ 2 $ 281 $ (43 ) Shareowners' equity (increase) decrease (225 ) (2 ) (281 ) 43 Earnings (loss) related to ineffectiveness — — — — Earnings (loss) effect of derivatives(a) 104 (57 ) 167 (128 ) (a) Offsets earnings effect of the hedged forecasted transaction Fair value hedges – These derivatives are used to hedge the effects of interest rate and currency exchange rate changes on debt that we have issued. FINANCIAL STATEMENT EFFECTS - FAIR VALUE HEDGES Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Balance sheet changes Fair value of derivative increase (decrease) $ (148 ) $ (116 ) $ (430 ) $ 2,494 Adjustment to carrying amount of hedged debt (increase) decrease 103 37 267 (2,651 ) Earnings (loss) related to hedge ineffectiveness (45 ) (79 ) (162 ) (156 ) Net investment hedges – We invest in foreign operations that conduct their financial services activities in currencies other than the US dollar. We hedge the currency risk associated with those investments primarily using short-term currency exchange contracts under which we receive US dollars and pay foreign currency and non-derivative instruments such as debt denominated in a foreign currency. FINANCIAL STATEMENT EFFECTS - NET INVESTMENT HEDGES Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Balance sheet changes Fair value of derivatives increase (decrease) $ (111 ) $ 107 $ (302 ) $ 154 Fair value of non-derivative instruments (increase) decrease (905 ) 475 (1,764 ) 425 Shareowners' equity (increase) decrease 1,020 (552 ) 2,082 (513 ) Earnings (loss) related to spot-forward differences and ineffectiveness 4 30 17 67 Earnings (loss) related to reclassification upon sale or liquidation(a) 18 47 78 (1,025 ) (a) Included zero and $47 million recorded in discontinued operations in the three months ended September 30, 2017 and 2016 and $59 million and $(1,026) million recorded in discontinued operations in the nine months ended September 30, 2017 and 2016 , respectively. Economic Hedges - These derivatives are not designated as hedges from an accounting standpoint (and therefore we do not apply hedge accounting to the relationship) but otherwise serve the same economic purpose as other hedging arrangements. We use economic hedges when we have exposures to currency exchange risk for which we are unable to meet the requirements for hedge accounting or when changes in the carrying amount of the hedged item are already recorded in earnings in the same period as the derivative making hedge accounting unnecessary. Even though the derivative is an effective economic hedge, there may be a net effect on earnings in each period due to differences in the timing of earnings recognition between the derivative and the hedged item. FINANCIAL STATEMENT EFFECTS - ECONOMIC HEDGES Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Balance sheet changes Change in fair value of economic hedge increase (decrease) $ 663 $ (686 ) $ 1,304 $ (808 ) Change in carrying amount of item being hedged increase (decrease) (920 ) 380 (1,876 ) 182 Earnings (loss) effect of economic hedges(a) (257 ) (306 ) (572 ) (626 ) (a) Offset by the future earnings effects of economically hedged item. NOTIONAL AMOUNT OF DERIVATIVES The notional amount of a derivative is the number of units of the underlying (for example, the notional principal amount of the debt in an interest rate swap). The notional amount is used to compute interest or other payment streams to be made under the contract and is a measure of our level of activity. We generally disclose derivative notional amounts on a gross basis. The majority of the outstanding notional amount of $185 billion at September 30, 2017 is related to managing interest rate and currency risk between financial assets and liabilities in our financial services business. The remaining derivative notional amount primarily relates to hedges of anticipated sales and purchases in foreign currency, commodity purchases and contractual terms in contracts that are considered embedded derivatives. The table below provides additional information about how derivatives are reflected in our financial statements. CARRYING AMOUNTS RELATED TO DERIVATIVES (In millions) September 30, 2017 December 31, 2016 Derivative assets $ 4,601 $ 5,467 Derivative liabilities (2,453 ) (4,883) Accrued interest 490 792 Cash collateral & credit valuation adjustment (1,816 ) (672) Net Derivatives 822 703 Securities held as collateral (437 ) (442) Net amount $ 385 $ 262 EFFECTS OF DERIVATIVES ON EARNINGS All derivatives are marked to fair value on our balance sheet, whether they are designated in a hedging relationship for accounting purposes or are used as economic hedges. Three months ended September 30 Nine months ended September 30 (In millions) Effect on hedging instrument Effect on underlying Effect on earnings Effect on hedging instrument Effect on underlying Effect on earnings 2017 Cash flow hedges $ 225 $ (225 ) $ — $ 281 $ (281 ) $ — Fair value hedges (148 ) 103 (45 ) (430 ) 267 (162 ) Net investment hedges(a) (1,016 ) 1,020 4 (2,065 ) 2,082 17 Economic hedges(b) 663 (920 ) (257 ) 1,304 (1,876 ) (572 ) Total $ (298 ) $ (717 ) 2016 Cash flow hedges $ 2 $ (2 ) $ — $ (43 ) $ 43 $ — Fair value hedges (116 ) 37 (79 ) 2,494 (2,651 ) (156 ) Net investment hedges(a) 582 (552 ) 30 580 (513 ) 67 Economic hedges(b) (686 ) 380 (306 ) (808 ) 182 (626 ) Total $ (355 ) $ (715 ) The amounts in the table above generally do not include associated derivative accruals in income or expense. (a) Both derivatives and non-derivatives hedging instruments are included. (b) Net effect is substantially offset by the change in fair value of the hedged item that will affect earnings in future periods. See Note 14 for additional information about changes in shareowners' equity related to hedging and amounts released to earnings. See Note 21 for other supplemental information about derivatives and hedging. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2017 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES A VIE is an entity that has one of three characteristics: (1) it is controlled by someone other than its shareowners or partners, (2) its shareowners or partners are not economically exposed to the entity's earnings (for example, they are protected against losses), or (3) it was thinly capitalized when it was formed. In the normal course of business we become involved with VIEs either because we help create them or we invest in them. Our VIEs either provide goods and services to customers or provide financing to third parties for the purchase of GE goods and services. If we control the VIE, we consolidate it and provide disclosure below. However, if the VIE is a business and use of its assets is not limited to settling its liabilities, ongoing disclosures are not required. CONSOLIDATED VARIABLE INTEREST ENTITIES Our most significant consolidated VIEs are four joint ventures used to complete acquisitions. The newest of these, BHGE LLC was formed as part of the Baker Hughes transaction. BHGE LLC owns the operating assets of GE Oil & Gas and Baker Hughes. BHGE LLC is a VIE as we hold an economic interest of approximately 62.5% in the partnership, but we hold no voting or participating rights through our direct economic ownership. BHGE LLC is a SEC Registrant with separate filing requirements with the SEC and its separate financial information can be obtained from www.sec.gov. The remaining three joint ventures were formed as part of the Alstom acquisition. These joint ventures include grid technology, renewable energy, and global nuclear and French steam power and have combined assets, liabilities and redeemable non-controlling interest as of September 30, 2017 and December 31, 2016 of $16,282 million , $11,414 million and $3,106 million and $14,460 million , $9,922 million and $2,709 million , respectively. These joint ventures are considered VIEs because the equity held by Alstom does not participate fully in the earnings of the ventures due to contractual features allowing Alstom to sell their interests back to GE. We consolidate these joint ventures because we control all their significant activities. These joint ventures are in all other repects regular businesses and are therefore exempt from ongoing disclosure requirements for consolidated VIEs provided below. The table below provides information about consolidated VIEs that are subject to ongoing disclosure requirements. Substantially all of these entities were created to help our customers finance the purchase of GE goods and services or to purchase GE customer notes receivable arising from sales of GE goods and services. These entities have no features that could expose us to losses that could significantly exceed the difference between the consolidated assets and liabilities. ASSETS AND LIABILITIES OF CONSOLIDATED VIEs GE Capital (In millions) GE Customer Notes receivables(a) Other Total September 30, 2017 Assets Financing receivables, net $ — $ — $ 919 $ 919 Current receivables 49 557 — 606 Investment securities — — 965 965 Other assets 541 1,273 1,895 3,709 Total $ 590 $ 1,830 $ 3,779 $ 6,199 Liabilities Borrowings $ 71 $ — $ 1,078 $ 1,149 Non-recourse borrowings — 693 16 709 Other liabilities 411 1,053 1,546 3,010 Total $ 482 $ 1,746 $ 2,640 $ 4,868 December 31, 2016 Assets Financing receivables, net $ — $ — $ 1,035 $ 1,035 Current receivables 57 670 — 727 Investment securities — — 982 982 Other assets 492 1,122 1,747 3,361 Total $ 549 $ 1,792 $ 3,764 $ 6,105 Liabilities Borrowings $ 1 $ — $ 818 $ 819 Non-recourse borrowings — 401 16 417 Other liabilities 457 1,378 1,482 3,317 Total $ 458 $ 1,779 $ 2,316 $ 4,553 (a) Two funding vehicles established to purchase customer notes receivable from GE, one of which is partially funded by third-party debt. Total revenues from our consolidated VIEs were $293 million and $211 million for the three months ended September 30, 2017 and 2016, respectively and $801 million and $881 million in the nine months ended September 30, 2017 and 2016 , respectively. Related expenses consisted primarily of cost of goods and services of $78 million and $112 million for the three months ended September 30, 2017 and 2016, respectively and $256 million and $610 million in the nine months ended September 30, 2017 and 2016 , respectively. Where we provide servicing for third-party investors, we are contractually permitted to commingle cash collected from customers on financing receivables sold to third-party investors with our own cash prior to payment to third-party investors, provided our short-term credit rating does not fall below A-1/P1. These third-party investors also owe us amounts for purchased financial assets and scheduled interest and principal payments, At September 30, 2017 and December 31, 2016, the amounts of commingled cash owed to the third-party investors were $1,216 million and $1,117 million , respectively, and the amounts owed to us by third-party investors were zero and $5 million , respectively. UNCONSOLIDATED VARIABLE INTEREST ENTITIES We become involved with unconsolidated VIEs primarily through assisting in the formation and financing of the entity. We do not consolidate these entities because we do not have power over decisions that significantly affect their economic performance. Our investments in unconsolidated VIEs, at September 30, 2017 and December 31, 2016 were $6,382 million and $6,346 million , respectively. Substantially all of these investments are held by Energy Financial Services. Obligations to make additional investments in these entities are not significant. |
COMMITMENTS, GUARANTEES, PRODUC
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES | COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES COMMITMENTS The GE Capital Aviation Services (GECAS) business in GE Capital had placed multiple-year orders for various Boeing, Airbus and other aircraft manufacturers with list prices approximating $ 38,669 million and secondary orders with airlines for used aircraft of approximately $ 2,077 million at September 30, 2017 . In our Aviation segment, we had committed to provide financing assistance of $ 1,875 million of future customer acquisitions of aircraft equipped with our engines. GUARANTEES Our guarantees are provided in the ordinary course of business. We underwrite these guarantees considering economic, liquidity and credit risk of the counterparty. We believe that the likelihood is remote that any such arrangements could have a significant adverse effect on our financial position, results of operations or liquidity. We record liabilities for guarantees at estimated fair value, generally the amount of the premium received, or if we do not receive a premium, the amount based on appraisal, observed market values or discounted cash flows. Any associated expected recoveries from third parties are recorded as other receivables, not netted against the liabilities. At September 30, 2017 , we were committed under the following guarantee arrangements beyond those provided on behalf of VIEs. See Note 17. Credit Support. We have provided $ 1,855 million of credit support on behalf of certain customers or associated companies, predominantly joint ventures and partnerships, using arrangements such as standby letters of credit and performance guarantees. These arrangements enable these customers and associated companies to execute transactions or obtain desired financing arrangements with third parties. Should the customer or associated company fail to perform under the terms of the transaction or financing arrangement, we would be required to perform on their behalf. Under most such arrangements, our guarantee is secured, usually by the asset being purchased or financed, or possibly by certain other assets of the customer or associated company. The length of these credit support arrangements parallels the length of the related financing arrangements or transactions. The liability for such credit support was $ 47 million at September 30, 2017 . Indemnification Agreements – Continuing Operations. We have agreements that require us to fund up to $ 190 million at September 30, 2017 under residual value guarantees on a variety of leased equipment. Under most of our residual value guarantees, our commitment is secured by the leased asset. The liability for these indemnification agreements was $ 7 million at September 30, 2017 . At September 30, 2017 , we also had $ 1,688 million of other indemnification commitments, substantially all of which relate to representations and warranties in sales of businesses or assets. The liability for these indemnification commitments was $ 277 million at September 30, 2017 . Indemnification Agreements – Discontinued Operations. At September 30, 2017 , we provided specific indemnifications to buyers of GE Capital’s assets that amounted to $ 2,714 million, for which we have recognized related liabilities of $ 320 million. In addition, in connection with the 2015 public offering and sale of our North American Retail Finance business, Synchrony Financial, GE Capital indemnified Synchrony Financial and its directors, officers, and employees against the liabilities of GECC's businesses other than historical liabilities of the businesses that are part of Synchrony Financial's ongoing operations. Contingent Consideration. These are agreements to provide additional consideration to a buyer or seller in a business combination if contractually specified conditions related to the acquisition or disposition are achieved. Amount of contingent consideration was insignificant at September 30, 2017 . PRODUCT WARRANTIES We provide for estimated product warranty expenses when we sell the related products. Because warranty estimates are forecasts that are based on the best available information – mostly historical claims experience – claims costs may differ from amounts provided. An analysis of changes in the liability for product warranties follows. Nine months ended September 30 (In millions) 2017 2016 Balance at January 1 $ 1,920 $ 1,723 Current-year provisions 615 539 Expenditures (601 ) (539 ) Other changes(a) 255 166 Balance as of September 30 $ 2,189 $ 1,889 ( a) Primarily includes effect of currency exchange and acquisitions. OTHER LOSS CONTINGENCIES LEGAL MATTERS WMC. During the fourth quarter of 2007, we completed the sale of WMC, our U.S. mortgage business. WMC substantially discontinued all new loan originations by the second quarter of 2007, and is not a loan servicer. In connection with the sale, WMC retained certain representation and warranty obligations related to loans sold to third parties prior to the disposal of the business and contractual obligations to repurchase previously sold loans that had an early payment default. All claims received by WMC for early payment default have either been resolved or are no longer being pursued. The remaining active claims have been brought by securitization trustees or administrators seeking recovery from WMC for alleged breaches of representations and warranties on mortgage loans that serve as collateral for residential mortgage-backed securities (RMBS). At September 30, 2017, such claims consisted of $1,019 million of individual claims generally submitted before the filing of a lawsuit (compared to $1,060 million at December 31, 2016) and $5,435 million of additional claims asserted against WMC in litigation without making a prior claim (Litigation Claims) (compared to $5,456 million at December 31, 2016). The total amount of these claims, $6,454 million , reflects the purchase price or unpaid principal balances of the loans at the time of purchase and does not give effect to pay downs or potential recoveries based upon the underlying collateral, which in many cases are substantial, nor to accrued interest or fees. WMC believes that repurchase claims brought based upon representations and warranties made more than six years before WMC was notified of the claim would be disallowed in legal proceedings under applicable law and the June 11, 2015 decision of the New York Court of Appeals in ACE Securities Corp. v. DB Structured Products, Inc., on the statute of limitations period governing such claims. Giving effect to the settlements and subsequent dismissals of lawsuits on five securitizations discussed in Legal Proceedings, active claims at October 26, 2017 consisted of $462 million of individual claims generally submitted before the filing of a lawsuit and $3,198 million of Litigation Claims, as defined above. Reserves related to repurchase claims made against WMC were $647 million at September 30, 2017, reflecting a net increase to reserves in the nine months ended September 30, 2017 of $21 million . The reserve estimate takes into account recent settlement activity and is based upon WMC’s evaluation of the remaining exposures as a percentage of estimated lifetime mortgage loan losses within the pool of loans supporting each securitization for which timely claims have been asserted in litigation against WMC. Settlements in prior periods reduced WMC’s exposure on claims asserted in certain securitizations and the claim amounts reported above give effect to these settlements. ROLLFORWARD OF THE RESERVE Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Balance, beginning of period $ 636 $ 860 $ 626 $ 875 Provision 11 — 21 84 Claim resolutions / rescissions — (195 ) — (294 ) Balance, end of period $ 647 $ 665 $ 647 $ 665 Given the significant litigation activity and WMC’s continuing efforts to resolve the lawsuits involving claims made against WMC, it is difficult to assess whether future losses will be consistent with WMC’s past experience. Adverse changes to WMC’s assumptions supporting the reserve may result in an increase to these reserves. WMC estimates a range of reasonably possible loss from $0 to approximately $500 million over its recorded reserve at September 30, 2017. This estimate involves significant judgment and may not reflect the range of uncertainties and unpredictable outcomes inherent in litigation, including the matters discussed in Legal Proceedings and potential changes in WMC’s legal strategy. This estimate excludes any possible loss associated with an adverse court decision on the applicable statute of limitations or an adverse outcome in the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) investigation discussed in Legal Proceedings, as WMC is unable at this time to develop such a meaningful estimate. With respect to the FIRREA investigation, this inability to develop a meaningful estimate of the range of reasonably possible loss reflects, among other factors, the range of penalties and other sanctions incurred by various financial institutions in proceedings and settlements involving claims made under FIRREA by the U.S. Department of Justice . At September 30, 2017, there were 10 lawsuits involving claims made against WMC arising from alleged breaches of representations and warranties on mortgage loans included in 11 securitizations. The adverse parties in these cases are securitization trustees or parties claiming to act on their behalf. As discussed in Legal Proceedings, five of these lawsuits have been dismissed following the conclusion of settlement agreements, and one of the lawsuits is subject of a settlement agreement approved by a Minnesota state court . One of the lawsuits involves claims made on two securitizations, and these claims are the subject of settlement agreements to which objections have been filed in California state court . Two of the three remaining lawsuits have been stayed pending the outcome of ongoing settlement negotiations. The sole remaining active lawsuit against WMC is the TMI case, discussed in Legal Proceedings, which was recently scheduled for trial on January 16, 2018. Settlement discussions to date have been unsuccessful, and if this case proceeds to trial and WMC is found liable, it is likely damages would be in an amount exceeding the total value of WMC’s assets. Although the alleged claims for relief vary from case to case, the complaints and counterclaims in these actions generally assert claims for breach of contract, indemnification, and/or declaratory judgment, and seek specific performance (repurchase of defective mortgage loan) and/or money damages. Adverse court decisions, including in cases not involving WMC, could result in new claims and lawsuits on additional loans. However, WMC continues to believe that it has defenses to the claims asserted in litigation, including, for example, based on causation and materiality requirements and applicable statutes of limitations. It is not possible to predict the outcome or impact of these defenses and other factors, any of which could materially affect the amount of any loss ultimately incurred by WMC on these claims. WMC has also received indemnification demands, nearly all of which are unspecified, from depositors/underwriters/sponsors of RMBS or securitization trustees in connection with actual or potential claims concerning alleged misrepresentations in the securitization offering documents to which WMC is not a party, mortgage loan repurchase claims made against RMBS sponsors or other claims involving alleged defects in loans sold by WMC. WMC believes that it has defenses to these demands. To the extent WMC is required to repurchase loans, WMC’s loss also would be affected by several factors, including pay downs, accrued interest and fees, and the value of the underlying collateral. The reserve and estimate of possible loss reflect judgment, based on currently available information, and a number of assumptions, including economic conditions, claim and settlement activity, pending and threatened litigation, court decisions regarding WMC’s legal defenses, indemnification demands, government activity, and other variables in the mortgage industry. Actual losses arising from claims against WMC could exceed these amounts and additional claims and lawsuits could result if actual claim rates, governmental actions, litigation and indemnification activity, adverse court decisions, actual settlement rates or losses WMC incurs on repurchased loans differ from its assumptions. Alstom legacy matters . On November 2, 2015, we acquired the Thermal, Renewables and Grid businesses from Alstom . Prior to the acquisition, the seller was the subject of two significant cases involving anti-competitive activities and improper payments: (1) in January 2007, Alstom was fined €65 million by the European Commission for participating in a gas insulated switchgear cartel that operated from 1988 to 2004 (that fine was later reduced to €59 million ), and (2) in December 2014, Alstom pled guilty in the United States to multiple violations of the Foreign Corrupt Practices Act and paid a criminal penalty of $772 million . As part of GE’s accounting for the acquisition, we established a reserve amounting to $858 million for legal and compliance matters related to the legacy business practices that were the subject of these and related cases in various jurisdictions. Regardless of jurisdiction, the allegations relate to claimed anti-competitive conduct or improper payments in the pre-acquisition period as the source of legal violations and/or damages. Given the significant litigation and compliance activity related to these matters and our ongoing efforts to resolve them, it is difficult to assess whether the disbursements will ultimately be consistent with the reserve established. The estimation of this reserve involved significant judgment and may not reflect the full range of uncertainties and unpredictable outcomes inherent in litigation and investigations of this nature. Damages sought may include disgorgement of profits on the underlying business transactions, fines and/or penalties, interest, or other forms of resolution. Factors that can affect the ultimate amount of losses associated with these matters include the way cooperation is assessed and valued, prosecutorial discretion in the determination of damages, formulas for determining fines and penalties, the duration and amount of legal and investigative resources applied, and political and social influences within each jurisdiction, among other considerations. Actual losses arising from claims in these matters could exceed the amount provided. At this time, we are unable to develop a meaningful estimate of the range of reasonably possible additional losses for this exposure. ENVIRONMENTAL MATTERS Our operations, like operations of other companies engaged in similar businesses, involve the use, disposal and cleanup of substances regulated under environmental protection laws. We are involved in numerous remediation actions to clean up hazardous wastes as required by federal and state laws. Liabilities for remediation costs exclude possible insurance recoveries and, when dates and amounts of such costs are not known, are not discounted. When there appears to be a range of possible costs with equal likelihood, liabilities are based on the low end of such range. It is reasonably possible that our environmental remediation exposure will exceed amounts accrued. However, due to uncertainties about the status of laws, regulations, technology and information related to individual sites, such amounts are not reasonably estimable. For further information, see our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 . |
INTERCOMPANY TRANSACTIONS
INTERCOMPANY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
INTERCOMPANY TRANSACTIONS | INTERCOMPANY TRANSACTIONS Transactions between related companies are made on an arms-length basis and are reported in the respective GE and GE Capital columns of our financial statements, but are eliminated in deriving our consolidated financial statements. These transactions include, but are not limited to, the following: • GE Capital dividends to GE, • GE Capital working capital solutions to optimize GE cash management, • GE Capital enabled GE industrial orders, including related GE guarantees to GE Capital, and • Aircraft engines, power equipment, renewable energy equipment and healthcare equipment manufactured by GE that are installed on GE Capital investments, including leased equipment. In addition to the above transactions that primarily enable growth for the GE businesses, there are routine related party transactions, which include, but are not limited to, the following: • Expenses related to parent-subsidiary pension plans, • Buildings and equipment leased between GE and GE Capital, including sale-leaseback transactions, • Information technology (IT) and other services sold to GE Capital by GE • Settlements of tax liabilities, and • Various investments, loans and allocations of GE corporate overhead costs. Presented below is a walk of intercompany eliminations from the combined GE and GE Capital totals to the consolidated cash flows from continuing operations. Nine months ended September 30, 2017 (In millions) 2017 2016 Cash from (used for) operating activities-continuing operations Combined $ 6,103 $ 20,245 GE current receivables sold to GE Capital 1,402 675 GE Capital dividends to GE (4,016 ) (16,050 ) Other reclassifications and eliminations(a) 519 (1,024 ) Total cash from (used for) operating activities-continuing operations $ 4,008 $ 3,846 Cash from (used for) investing activities-continuing operations Combined $ 752 $ 47,548 GE current receivables sold to GE Capital (1,653 ) (622 ) GE debt effected through GE Capital 5,942 5,002 Other reclassifications and eliminations(a) (349 ) 1,631 Total cash from (used for) investing activities-continuing operations $ 4,692 $ 53,559 Cash from (used for) financing activities-continuing operations Combined $ (16,383 ) $ (85,578 ) GE current receivables sold to GE Capital 251 (54 ) GE Capital dividends to GE 4,016 16,050 GE debt effected through GE Capital (5,942 ) (5,002 ) Other reclassifications and eliminations(a) (170 ) (604 ) Total cash from (used for) financing activities-continuing operations $ (18,228 ) $ (75,188 ) (a) Includes eliminations of other cash flows activities including those related to GE Capital enabled GE industrial orders, various investments, loans and allocations of GE corporate overhead costs. |
GUARANTOR FINANCIAL INFORMATION
GUARANTOR FINANCIAL INFORMATION | 9 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
GUARANTOR FINANCIAL INFORMATION | GUARANTOR FINANCIAL INFORMATION GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL INFORMATION On October 26, 2015, GE Capital International Funding Company Unlimited Company, formerly GE Capital International Funding Company (the Issuer), then a finance subsidiary of General Electric Capital Corporation, settled its previously announced private offers to exchange (the Exchange Offers) the Issuer’s new senior unsecured notes for certain outstanding debt securities of General Electric Capital Corporation. The new notes that were issued were fully and unconditionally, jointly and severally guaranteed by both the Company and GE Capital International Holdings Limited (GECIHL) (each a Guarantor, and together, the Guarantors). Under the terms of a registration rights agreement entered into in connection with the Exchange Offers, the Issuer and the Company agreed to file a registration statement with the U.S. Securities and Exchange Commission (SEC) for an offer to exchange new senior notes of the Issuer registered with the SEC and guaranteed by the Guarantors for certain of the Issuer’s outstanding unregistered senior notes. This exchange was completed in July 2016. PRESENTATION In connection with the registration of the senior notes, the Company is required to provide certain financial information regarding the Issuer and the Guarantors of the registered securities. Included are the Condensed Consolidating Statements of Earnings and Comprehensive Income for the three months ended September 30, 2017 and 2016 and nine months ended September 30, 2017 and 2016, Condensed Consolidating Statements of Financial Position as of September 30, 2017 and December 31, 2016 and Condensed Consolidating Statements of Cash Flows for the nine months ended September 30, 2017 and 2016 for: • General Electric Company (the Parent Company Guarantor) - prepared with investments in subsidiaries accounted for under the equity method of accounting and excluding any inter-segment eliminations; • GE Capital International Funding Company Unlimited Company (the Subsidiary Issuer) – finance subsidiary for debt; • GE Capital International Holdings Limited (GECIHL) (the Subsidiary Guarantor) - prepared with investments in non-guarantor subsidiaries accounted for under the equity method of accounting; • Non-Guarantor Subsidiaries - prepared on an aggregated basis excluding any elimination or consolidation adjustments and includes predominantly all non-cash adjustments for cash flows; • Consolidating Adjustments - adjusting entries necessary to consolidate the Parent Company Guarantor with the Subsidiary Issuer, the Subsidiary Guarantor and Non-Guarantor Subsidiaries; and • Consolidated - prepared on a consolidated basis. CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues and other income Sales of goods and services $ 8,025 $ — $ — $ 40,741 $ (19,338 ) $ 29,428 Other income (loss) (1,152 ) — — 25,159 (21,861 ) 2,146 Equity in earnings (loss) of affiliates 5,672 — 1,019 21,123 (27,813 ) — GE Capital revenues from services — 176 209 2,785 (1,272 ) 1,898 Total revenues and other income (loss) 12,545 176 1,228 89,808 (70,284 ) 33,472 Costs and expenses Interest and other financial charges 1,671 168 542 1,279 (2,428 ) 1,232 Other costs and expenses 9,382 — — 40,253 (18,861 ) 30,774 Total costs and expenses 11,053 168 542 41,533 (21,290 ) 32,006 Earnings (loss) from continuing operations before income taxes 1,491 7 686 48,275 (48,994 ) 1,466 Benefit (provision) for income taxes 457 (1 ) — (59 ) (63 ) 334 Earnings (loss) from continuing operations 1,948 6 686 48,216 (49,058 ) 1,800 Earnings (loss) from discontinued operations, net of taxes (113 ) — (562 ) 4 565 (106 ) Net earnings (loss) 1,836 6 125 48,220 (48,493 ) 1,694 Less net earnings (loss) attributable to noncontrolling interests — — — (21 ) (121 ) (142 ) Net earnings (loss) attributable to the Company 1,836 6 125 48,241 (48,372 ) 1,836 Other comprehensive income (loss) 931 — (187 ) 19,935 (19,749 ) 931 Comprehensive income (loss) attributable to the Company $ 2,766 $ 6 $ (62 ) $ 68,176 $ (68,121 ) $ 2,766 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues and other income Sales of goods and services $ 8,194 $ — $ — $ 36,082 $ (17,462 ) $ 26,814 Other income (loss) 883 — — 35,578 (36,234 ) 227 Equity in earnings (loss) of affiliates 1,788 — 428 29,804 (32,019 ) — GE Capital revenues from services — 166 243 2,838 (1,023 ) 2,224 Total revenues and other income (loss) 10,865 166 671 104,302 (86,738 ) 29,266 Costs and expenses Interest and other financial charges 1,166 138 525 856 (1,724 ) 961 Other costs and expenses 8,498 — 16 36,101 (18,385 ) 26,230 Total costs and expenses 9,664 138 541 36,957 (20,109 ) 27,191 Earnings (loss) from continuing operations before income taxes 1,201 28 130 67,345 (66,630 ) 2,074 Benefit (provision) for income taxes 932 (3 ) (11 ) (951 ) 16 (18 ) Earnings (loss) from continuing operations 2,132 24 119 66,395 (66,614 ) 2,056 Earnings (loss) from discontinued operations, net of taxes (105 ) — (552 ) 224 328 (105 ) Net earnings (loss) 2,027 24 (433 ) 66,619 (66,286 ) 1,951 Less net earnings (loss) attributable to noncontrolling interests — — — (51 ) (25 ) (76 ) Net earnings (loss) attributable to the Company 2,027 24 (433 ) 66,670 (66,262 ) 2,027 Other comprehensive income (loss) 477 — 51 (711 ) 661 477 Comprehensive income (loss) attributable to the Company $ 2,504 $ 24 $ (382 ) $ 65,959 $ (65,601 ) $ 2,504 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues and other income Sales of goods and services $ 24,897 $ — $ — $ 114,446 $ (57,448 ) $ 81,895 Other income (loss) (1,041 ) — — 57,784 (54,132 ) 2,611 Equity in earnings (loss) of affiliates 10,444 — 1,711 71,787 (83,942 ) — GE Capital revenues from services — 505 583 7,644 (2,548 ) 6,184 Total revenues and other income (loss) 34,301 505 2,294 251,661 (198,070 ) 90,691 Costs and expenses Interest and other financial charges 3,348 477 1,485 3,582 (5,348 ) 3,545 Other costs and expenses 27,567 — 22 113,764 (58,020 ) 83,334 Total costs and expenses 30,916 478 1,507 117,346 (63,368 ) 86,879 Earnings (loss) from continuing operations before income taxes 3,385 27 787 134,315 (134,702 ) 3,812 Benefit (provision) for income taxes 971 (3 ) 115 (758 ) (22 ) 303 Earnings (loss) from continuing operations 4,356 24 902 133,557 (134,724 ) 4,115 Earnings (loss) from discontinued operations, net of taxes (501 ) — (284 ) 7 287 (490 ) Net earnings (loss) 3,856 24 618 133,564 (134,437 ) 3,624 Less net earnings (loss) attributable to noncontrolling interests — — — (53 ) (178 ) (231 ) Net earnings (loss) attributable to the Company 3,856 24 618 133,617 (134,259 ) 3,856 Other comprehensive income (loss) 4,075 — 463 (7,059 ) 6,596 4,075 Comprehensive income (loss) attributable to the Company $ 7,931 $ 24 $ 1,081 $ 126,559 $ (127,663 ) $ 7,931 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues and other income Sales of goods and services $ 28,870 $ — $ — $ 108,043 $ (56,757 ) $ 80,156 Other income (loss) 845 — — 55,062 (52,522 ) 3,385 Equity in earnings (loss) of affiliates 7,923 — 1,093 58,732 (67,747 ) — GE Capital revenues from services — 762 1,262 9,182 (4,144 ) 7,063 Total revenues and other income (loss) 37,638 762 2,355 231,019 (181,170 ) 90,604 Costs and expenses Interest and other financial charges 2,828 685 2,133 4,027 (5,651 ) 4,023 Other costs and expenses 30,555 — 71 110,725 (60,906 ) 80,445 Total costs and expenses 33,383 686 2,204 114,752 (66,558 ) 84,467 Earnings (loss) from continuing operations before income taxes 4,255 76 150 116,267 (114,612 ) 6,137 Benefit (provision) for income taxes 1,862 (10 ) (58 ) (1,908 ) (189 ) (302 ) Earnings (loss) from continuing operations 6,118 67 93 114,359 (114,801 ) 5,835 Earnings (loss) from discontinued operations, net of taxes (954 ) — (1,547 ) 398 1,149 (954 ) Net earnings (loss) 5,164 67 (1,455 ) 114,757 (113,652 ) 4,881 Less net earnings (loss) attributable to noncontrolling interests — — — (143 ) (140 ) (283 ) Net earnings (loss) attributable to the Company 5,164 67 (1,455 ) 114,900 (113,512 ) 5,164 Other comprehensive income (loss) 2,107 (12 ) 114 136 (238 ) 2,107 Comprehensive income (loss) attributable to the Company $ 7,271 $ 55 $ (1,341 ) $ 115,036 $ (113,750 ) $ 7,271 CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION SEPTEMBER 30, 2017 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Cash and equivalents $ 737 $ — $ 3 $ 39,623 $ (509 ) $ 39,854 Investment securities 1 — — 40,298 (1,603 ) 38,696 Receivables - net 51,669 17,452 31,245 87,077 (144,082 ) 43,362 Inventories 5,264 — — 24,695 (4,112 ) 25,848 Property, plant and equipment - net 5,645 — — 49,754 (1,299 ) 54,101 Investment in subsidiaries(a) 297,324 — 80,506 695,869 (1,073,699 ) — Goodwill and intangible assets 6,812 — — 84,760 16,932 108,503 All other assets 27,636 44 387 214,163 (181,348 ) 60,882 Assets of discontinued operations — — — — 6,791 6,791 Total assets $ 395,089 $ 17,497 $ 112,142 $ 1,236,239 $ (1,382,929 ) $ 378,038 Liabilities and equity Short-term borrowings $ 183,427 $ — $ 46,537 $ 23,793 $ (225,630 ) $ 28,127 Accounts payable 9,672 — — 66,041 (60,807 ) 14,907 Other current liabilities 11,479 33 3 24,418 550 36,483 Long-term and non-recourse borrowings 72,193 16,724 34,810 53,517 (68,979 ) 108,265 All other liabilities 42,212 544 137 55,881 (7,003 ) 91,772 Liabilities of discontinued operations — — — — 990 990 Total Liabilities 318,984 17,302 81,488 223,650 (360,879 ) 280,544 Redeemable noncontrolling interests — — — 2,713 727 3,441 GE shareowners' equity 76,105 195 30,654 1,008,330 (1,039,179 ) 76,105 Noncontrolling interests — — — 1,545 16,402 17,947 Total equity 76,105 195 30,654 1,009,876 (1,022,777 ) 94,052 Total liabilities, redeemable noncontrolling interests and equity $ 395,089 $ 17,497 $ 112,142 $ 1,236,239 $ (1,382,929 ) $ 378,038 (a) Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $19,301 million and net assets of discontinued operations of $3,776 million . CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2016 (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Cash and equivalents $ 2,558 $ — $ 3 $ 46,994 $ (1,426 ) $ 48,129 Investment securities 1 — — 47,394 (3,082 ) 44,313 Receivables - net 63,620 17,157 30,470 79,401 (148,385 ) 42,263 Inventories 4,654 — — 21,076 (3,377 ) 22,354 Property, plant and equipment - net 5,768 — — 46,366 (1,615 ) 50,518 Investment in subsidiaries(a) 272,685 — 80,481 492,674 (845,840 ) — Goodwill and intangible assets 8,128 — — 42,074 36,673 86,875 All other assets 14,692 44 39 201,276 (160,134 ) 55,917 Assets of discontinued operations — — — — 14,815 14,815 Total assets $ 372,107 $ 17,202 $ 110,992 $ 977,255 $ (1,112,372 ) $ 365,183 Liabilities and equity Short-term borrowings $ 167,089 $ 1 $ 46,432 $ 25,919 $ (208,727 ) $ 30,714 Accounts payable 5,412 — — 47,366 (38,343 ) 14,435 Other current liabilities 11,072 33 117 25,095 114 36,431 Long-term and non-recourse borrowings 68,983 16,486 34,389 68,912 (83,273 ) 105,496 All other liabilities 43,722 511 481 58,376 (9,656 ) 93,434 Liabilities of discontinued operations — — — — 4,158 4,158 Total Liabilities 296,279 17,030 81,419 225,667 (335,727 ) 284,668 Redeemable noncontrolling interests — — — 2,223 802 3,025 GE shareowners' equity 75,828 171 29,573 747,719 (777,463 ) 75,828 Noncontrolling interests — — — 1,647 16 1,663 Total equity 75,828 171 29,573 749,366 (777,447 ) 77,491 Total liabilities, redeemable noncontrolling interests and equity $ 372,107 $ 17,202 $ 110,992 $ 977,255 $ (1,112,372 ) $ 365,183 (a) Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $28,516 million and net assets of discontinued operations of $6,012 million . CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows – operating activities Cash from (used for) operating activities - continuing operations $ (25,937 ) $ 39 $ (81 ) $ 193,403 $ (163,416 ) $ 4,008 Cash from (used for) operating activities - discontinued operations (501 ) — — 8 3 (490 ) Cash from (used for) operating activities (26,437 ) 39 (81 ) 193,411 (163,413 ) 3,518 Cash flows – investing activities Cash from (used for) investing activities – continuing operations (1,723 ) (39 ) 345 (257,130 ) 263,239 4,692 Cash from (used for) investing activities – discontinued operations — — — (2,349 ) — (2,349 ) Cash from (used for) investing activities (1,723 ) (39 ) 345 (259,479 ) 263,239 2,343 Cash flows – financing activities Cash from (used for) financing activities – continuing operations 26,339 — (265 ) 104,160 (148,463 ) (18,228 ) Cash from (used for) financing activities – discontinued operations — — — 1,905 — 1,905 Cash from (used for) financing activities 26,339 — (265 ) 106,065 (148,463 ) (16,323 ) Effect of currency exchange rate changes on cash and equivalents — — — 1,253 — 1,253 Increase (decrease) in cash and equivalents (1,821 ) — — 41,251 (48,638 ) (9,208 ) Cash and equivalents at beginning of year 2,558 — 3 (1,132 ) 48,129 49,558 Cash and equivalents at September 30 737 — 3 40,119 (509 ) 40,350 Less cash and equivalents of discontinued operations at September 30 — — — 496 — 496 Cash and equivalents of continuing operations at September 30 $ 737 $ — $ 3 $ 39,623 $ (509 ) $ 39,854 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2016 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows – operating activities Cash from (used for) operating activities - continuing operations $ (14,847 ) $ 175 $ (121 ) $ 83,404 $ (64,766 ) $ 3,846 Cash from (used for) operating activities - discontinued operations (954 ) — — (4,366 ) (399 ) (5,719 ) Cash from (used for) operating activities (15,801 ) 175 (121 ) 79,038 (65,165 ) (1,873 ) Cash flows – investing activities Cash from (used for) investing activities – continuing operations 20,902 16,080 36,317 32,000 (51,740 ) 53,559 Cash from (used for) investing activities – discontinued operations — — — (12,056 ) — (12,056 ) Cash from (used for) investing activities 20,902 16,080 36,317 19,944 (51,740 ) 41,503 Cash flows – financing activities Cash from (used for) financing activities – continuing operations (6,894 ) (16,255 ) (36,194 ) (150,446 ) 134,601 (75,188 ) Cash from (used for) financing activities – discontinued operations — — — 295 — 295 Cash from (used for) financing activities (6,894 ) (16,255 ) (36,194 ) (150,151 ) 134,601 (74,893 ) Effect of currency exchange rate changes on cash and equivalents — — — (169 ) — (169 ) Increase (decrease) in cash and equivalents (1,792 ) — 3 (51,339 ) 17,696 (35,432 ) Cash and equivalents at beginning of year 4,137 — — 107,350 (20,609 ) 90,878 Cash and equivalents at September 30 2,344 — 3 56,011 (2,913 ) 55,445 Less cash and equivalents of discontinued operations at September 30 — — — 2,915 — 2,915 Cash and equivalents of continuing operations at September 30 $ 2,344 $ — $ 3 $ 53,095 $ (2,913 ) $ 52,530 |
SUPPLEMENTAL INFORMATION
SUPPLEMENTAL INFORMATION | 9 Months Ended |
Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | |
SUPPLEMENTAL INFORMATION | SUPPLEMENTAL INFORMATION CASH FLOWS INFORMATION Amounts reported in the "All other operating activities" line in the Statement of Cash Flows reflect cash sources and uses as well as non-cash adjustments to net income including those related to taxes, interest, pension, contract assets and gains (losses) on principal business dispositions. Certain supplemental information related to our cash flows is shown below. Nine months ended September 30 (In millions) 2017 2016 GE All other operating activities (Gains) losses on purchases and sales of business interests(a) $ (1,968 ) $ (3,471 ) Contract assets (net)(b) (4,009 ) (3,035 ) Income taxes(c) (1,107 ) (1,318 ) Interest charges(d) 327 323 Principal pension plans(e) 1,179 2,520 Other(f) 1,636 169 $ (3,942 ) $ (4,812 ) Net dispositions (purchases) of GE shares for treasury Open market purchases under share repurchase program $ (3,394 ) $ (18,708 ) Other purchases (58 ) (430 ) Dispositions 831 1,168 $ (2,620 ) $ (17,969 ) (a) Included pre-tax gains on sales of businesses reclassified to Proceeds from principal business dispositions within Cash flows from investing activities of $(1,897) million for Water in the nine months ended September 30, 2017 , and $(3,130) million for Appliances and $(398) million for GE Asset Management in the nine months ended September 30, 2016 . (b) Contract assets are presented net of related billings in excess of revenues on our long-term product service agreements. See Note 9. (c) Reflected the effects of current tax expense (benefit) of $699 million and $953 million and net cash paid during the year for income taxes of $(1,806) million and $(2,271) million for the nine months ended September 30, 2017 and 2016 , respectively. Cash flows effects of deferred tax provisions (benefits) are shown separately within cash flows from operating activities. (d) Reflected the effects of interest expense of $1,918 million and $1,490 million and cash paid for interest of $(1,591) million and $(1,167) million for the nine months ended September 30, 2017 and 2016 , respectively. (e) Reflected the effects of pension costs of $2,779 million and $2,674 million and employer contributions of $(1,600) million and $(154) million for the nine months ended September 30, 2017 and 2016 , respectively. See Note 12. (f) Included a $512 million correction of investing cash flows used for the settlement of derivative instruments classified as operating during the the six months ended June 30, 2017. Therefore, operating cash flows were understated and investing cash flows were overstated during the the six months ended June 30, 2017. DERIVATIVES AND HEDGING See Note 16 for the primary information related to our derivatives and hedging activity. This section provides certain supplemental information about this topic. Changes in the fair value of derivatives are recorded in a separate component of equity (referred to below as Accumulated Other Comprehensive Income, or AOCI) and are recorded in earnings in the period in which the hedged transaction occurs. The table below summarizes this activity by hedging instrument. FAIR VALUE OF DERIVATIVES September 30, 2017 December 31, 2016 (In millions) Assets Liabilities Assets Liabilities Derivatives accounted for as hedges Interest rate contracts $ 2,663 $ 108 $ 3,106 $ 210 Currency exchange contracts 233 105 402 624 Other contracts — — — — 2,895 213 3,508 834 Derivatives not accounted for as hedges Interest rate contracts 74 6 62 20 Currency exchange contracts 1,499 2,187 1,778 4,011 Other contracts 132 46 119 17 1,705 2,240 1,958 4,048 Gross derivatives recognized in statement of financial position Gross derivatives 4,601 2,453 5,467 4,883 Gross accrued interest 491 — 768 (24 ) 5,091 2,454 6,234 4,859 Amounts offset in statement of financial position Netting adjustments(a) (1,802 ) (1,802 ) (3,097 ) (3,094 ) Cash collateral(b) (2,091 ) (276 ) (2,025 ) (1,355 ) (3,893 ) (2,078 ) (5,121 ) (4,449 ) Net derivatives recognized in statement of financial position Net derivatives 1,198 376 1,113 410 Amounts not offset in statement of financial position Securities held as collateral(c) (437 ) — (442 ) — Net amount $ 761 $ 376 $ 671 $ 410 Derivatives are classified in the captions "All other assets" and "All other liabilities" and the related accrued interest is classified in "Other GE Capital receivables" and "All other liabilities" in our Statement of Financial Position. (a) The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts include fair value adjustments related to our own and counterparty non-performance risk. At September 30, 2017 and December 31, 2016 , the cumulative adjustment for non-performance risk was insignificant and $(3) million , respectively. (b) Excluded excess cash collateral received and posted of $90 million and $151 million at September 30, 2017 , respectively, and $6 million and $177 million at December 31, 2016 , respectively. (c) Excluded excess securities collateral received of $42 million and zero at September 30, 2017 and December 31, 2016 , respectively. CASH FLOW HEDGE ACTIVITY Gain (loss) recognized in AOCI Gain (loss) reclassified for the three months ended September 30 for the three months ended September 30 (In millions) 2017 2016 2017 2016 Interest rate contracts $ 1 $ 1 $ (6 ) $ (12 ) Currency exchange contracts 224 — 110 (46 ) Commodity contracts — 1 — — Total(a) $ 225 $ 2 $ 104 $ (57 ) CASH FLOW HEDGE ACTIVITY Gain (loss) recognized in AOCI Gain (loss) reclassified for the nine months ended September 30 for the nine months ended September 30 (In millions) 2017 2016 2017 2016 Interest rate contracts $ 3 $ 32 $ (21 ) $ (67 ) Currency exchange contracts 278 (76 ) 189 (59 ) Commodity contracts — 1 — (3 ) Total(a) $ 281 $ (43 ) $ 167 $ (128 ) (a) Gain (loss) is recorded in "GE Capital revenues from services", "Interest and other financial charges", and "Other costs and expenses" in our Statement of Earnings when reclassified. The total pre-tax amount in AOCI related to cash flow hedges of forecasted transactions was a $160 million gain at September 30, 2017 . We expect to transfer $39 million gain to earnings as an expense in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions. In both the six months ended 2017 and 2016, we recognized insignificant gains and losses related to hedged forecasted transactions and firm commitments that did not occur by the end of the originally specified period. At September 30, 2017 and 2016, the maximum term of derivative instruments that hedge forecasted transactions was 15 years and 16 years, respectively. See Note 14 for additional information about reclassifications out of AOCI. For cash flow hedges, the amount of ineffectiveness in the hedging relationship and amount of the changes in fair value of the derivatives that are not included in the measurement of ineffectiveness were insignificant for each reporting period. COUNTERPARTY CREDIT RISK Fair values of our derivatives can change significantly from period to period based on, among other factors, market movements and changes in our positions. We manage counterparty credit risk (the risk that counterparties will default and not make payments to us according to the terms of our agreements) on an individual counterparty basis. Where we have agreed to netting of derivative exposures with a counterparty, we net our exposures with that counterparty and apply the value of collateral posted to us to determine the exposure. We actively monitor these net exposures against defined limits and take appropriate actions in response, including requiring additional collateral. As discussed above, we have provisions in certain of our master agreements that require counterparties to post collateral (typically, cash or U.S. Treasury securities) when our receivable due from the counterparties, measured at current market value, exceeds a specified limit. The fair value of such collateral was $2,529 million at September 30, 2017 , of which $2,091 million was cash and $437 million was in the form of securities held by a custodian for our benefit. Under certain of these same agreements, we post collateral to our counterparties for our derivative obligations, the fair value of cash collateral posted was $276 million at September 30, 2017 . At September 30, 2017 , our exposure to counterparties (including accrued interest), net of collateral we hold, was $681 million . This excludes exposure related to embedded derivatives. Additionally, our master agreements typically contain mutual downgrade provisions that provide the ability of each party to require termination if the long-term credit rating of the counterparty were to fall below A-/A3 or other ratings levels agreed upon with the counterparty. In certain of these master agreements, each party also has the ability to require termination if the short-term rating of the counterparty were to fall below A-1/P-1. Our master agreements also typically contain provisions that provide termination rights upon the occurrence of certain other events, such as a bankruptcy or events of default by one of the parties. If an agreement was terminated under any of these circumstances, the termination amount payable would be determined on a net basis and could also take into account any collateral posted. The net amount of our derivative liability, after consideration of collateral posted by us and outstanding interest payments was $271 million at September 30, 2017 . This excludes exposure related to embedded derivatives. |
SEGMENT OPERATIONS
SEGMENT OPERATIONS | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT OPERATIONS | SEGMENT OPERATIONS SUMMARY OF OPERATING SEGMENTS Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 V% 2017 2016 V% Revenues Power(a) $ 8,679 $ 8,995 (4) % $ 26,569 $ 25,664 4 % Renewable Energy 2,905 2,770 5 % 7,406 6,533 13 % Oil & Gas 5,365 2,964 81 % 11,475 9,497 21 % Aviation 6,816 6,300 8 % 20,153 19,074 6 % Healthcare 4,724 4,482 5 % 13,714 13,190 4 % Transportation 1,074 1,249 (14) % 3,185 3,471 (8 )% Lighting(a) 483 576 (16) % 1,442 4,239 (66 )% Total industrial segment revenues 30,046 27,335 10 % 83,943 81,667 3 % Capital 2,397 2,600 (8) % 7,525 8,256 (9 )% Total segment revenues 32,444 29,936 8 % 91,468 89,923 2 % Corporate items and eliminations 1,028 (670 ) (777 ) 681 Consolidated revenues $ 33,472 $ 29,266 14 % $ 90,691 $ 90,604 — % Segment profit (loss) Power(a) $ 611 $ 1,259 (51) % $ 2,526 $ 2,924 (14 )% Renewable Energy 257 202 27 % 524 413 27 % Oil & Gas(b) (36 ) 353 U 325 981 (67 )% Aviation 1,680 1,494 12 % 4,856 4,366 11 % Healthcare 820 717 14 % 2,289 2,130 7 % Transportation 276 309 (11) % 634 747 (15 )% Lighting(a) 23 (15 ) F 43 196 (78 )% Total industrial segment profit 3,630 4,320 (16) % 11,198 11,756 (5 )% Capital 24 26 (8 )% (195 ) (1,466 ) 87 % Total segment profit (loss) 3,654 4,345 (16 )% 11,003 10,290 7 % Corporate items and eliminations (1,095 ) (1,524 ) (4,687 ) (2,120 ) GE interest and other financial charges (718 ) (483 ) (1,918 ) (1,490 ) GE benefit (provision) for income taxes 64 (241 ) (297 ) (1,034 ) Earnings (loss) from continuing operations attributable to GE common shareowners 1,905 2,097 (9) % 4,101 5,645 (27 )% Earnings (loss) from discontinued operations, net of taxes (106 ) (105 ) (1 )% (490 ) (954 ) 49 % Less net earnings attributable to noncontrolling interests, discontinued operations (1 ) (2 ) 6 2 Earnings (loss) from discontinued operations, net of tax and noncontrolling interest (105 ) (103 ) (2 )% (497 ) (956 ) 48 % Consolidated net earnings (loss) attributable to the GE common shareowners $ 1,800 $ 1,994 (10) % $ 3,604 $ 4,689 (23 )% (a) Beginning in the third quarter of 2017, the Energy Connections business within the former Energy Connections & Lighting segment was combined with the Power segment and presented as one reporting segment called Power. As a result of this combination, our GE Lighting and Current, powered by GE (Current) businesses are now reported as a separate segment called Lighting. (b) Oil & Gas segment operating profit excluding restructuring and other charges was $231 million and $593 million for the three and nine months ended September 30, 2017, respectively. |
BASIS OF PRESENTATION AND SUM32
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying consolidated financial statements represent the consolidation of General Electric Company (the Company) and all companies that we directly or indirectly control, either through majority ownership or otherwise. See Note 1 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2016 that discusses our consolidation and financial statement presentation. As used in this report on Form 10-Q (Report), “GE” represents the adding together of all affiliated companies except GE Capital (GE Capital or Financial Services), whose continuing operations are presented on a one-line basis; GE Capital consists of General Capital Global Holdings, LLC (GECGH) and all of its affiliates; and “Consolidated” represents the adding together of GE and GE Capital with the effects of transactions between the two eliminated. Unless otherwise indicated, we refer to the caption revenues and other income simply as “revenues” throughout this Form 10-Q. |
RECLASSIFICATION | We have reclassified certain prior-period amounts to conform to the current-period presentation. |
ACCOUNTING CHANGES | ACCOUNTING CHANGES On January 1, 2017, we adopted ASU 2015-11, Simplifying the Measurement of Inventory , which was intended to simplify the subsequent measurement of inventory held by an entity not measured using last-in, first-out (LIFO) or retail inventory method. The amendments eliminated the requirement that entities consider the replacement cost of inventory and the net realizable value less a normal profit margin, which was historically used to establish a floor and ceiling for an assessment of market value. The adoption of this standard was immaterial to our financial statements. |
BUSINESSES HELD FOR SALE AND 33
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Financial Information for Assets and Liabilities of Businesses Held For Sale and Discontinued Operations | FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Operations Total revenues and other income (loss) $ 35 $ 633 $ 123 $ 2,494 Earnings (loss) from discontinued operations before income taxes $ (191 ) $ 6 $ (603 ) $ (154 ) Benefit (provision) for income taxes(a) 71 278 198 460 Earnings (loss) from discontinued operations, net of taxes $ (120 ) $ 284 $ (404 ) $ 306 Disposal Gain (loss) on disposal before income taxes $ 22 $ (50 ) $ 3 $ (591 ) Benefit (provision) for income taxes(a) (8 ) (339 ) (89 ) (670 ) Gain (loss) on disposal, net of taxes $ 14 $ (389 ) $ (86 ) $ (1,261 ) Earnings (loss) from discontinued operations, net of taxes(b)(c) $ (106 ) $ (105 ) $ (490 ) $ (954 ) (a) GE Capital's total tax benefit (provision) for discontinued operations and disposals included current tax benefit (provision) of $(63) million and $726 million for the three months ended September 30, 2017 and 2016 , respectively, and $(386) million and $(154) million for the nine months ended September 30, 2017 and 2016 , respectively, including current U.S. Federal tax benefit (provision) of $1 million and $678 million for the three months ended September 30, 2017 and 2016 , respectively, and $(518) million and $207 million for the nine months ended September 30, 2017 and 2016, respectively. The deferred tax benefit (provision) was $126 million and $(787) million for the three months ended September 30, 2017 and 2016 , respectively, and $495 million and $(56) million for the nine months ended September 30, 2017 and 2016, respectively. (b) The sum of GE Industrial earnings (loss) from discontinued operations, net of taxes, and GE Capital earnings (loss) from discontinued operations, net of taxes, after adjusting for earnings (loss) attributable to noncontrolling interests related to discontinued operations, is reported within earnings (loss) from discontinued operations, net of taxes, in the GE Industrial column of the Consolidated Statement of Earnings (Loss). (c) Earnings (loss) from discontinued operations attributable to the Company, before income taxes, was $(168) million and $(43) million for the three months ended September 30, 2017 and 2016 , respectively, and $(606) million and $(746) million for the nine months ended September 30, 2017 and 2016, respectively. (In millions) September 30, 2017 December 31, 2016 Assets Cash and equivalents $ 496 $ 1,429 Investment securities 1,131 2,626 Deferred income taxes 969 487 Financing receivables held for sale 3,631 8,547 Other assets 564 1,727 Assets of discontinued operations $ 6,791 $ 14,815 Liabilities Accounts payable 51 164 Borrowings — 2,076 Other liabilities 939 1,918 Liabilities of discontinued operations $ 990 $ 4,158 FINANCIAL INFORMATION FOR ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE (In millions) September 30, 2017 December 31, 2016 Assets Current receivables(a) $ 339 $ 366 Inventories 361 211 Property, plant, and equipment – net 390 632 Goodwill 1,050 212 Other intangible assets – net 130 123 Contract assets 52 125 Other 46 76 Assets of businesses held for sale $ 2,369 $ 1,745 Liabilities Accounts payable $ 219 $ 190 Progress collections and price adjustments accrued 21 141 Other current liabilities 131 133 Non-current compensation and benefits 152 82 Other 38 110 Liabilities of businesses held for sale $ 561 $ 656 (a) Included transactions in our industrial businesses that were made on an arms-length basis with GE Capital, including GE current receivables sold to GE Capital of $ 148 million and $ 117 million at September 30, 2017 and December 31, 2016 , respectively. These intercompany balances included within our held for sale businesses are reported in the GE and GE Capital columns of our financial statements, but are eliminated in deriving our consolidated financial statements. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities | September 30, 2017 December 31, 2016 (In millions) Amortized Gross Gross Estimated (a) Amortized Gross Gross Estimated (a) Debt U.S. corporate $ 20,255 $ 3,594 $ (45 ) $ 23,804 $ 20,049 $ 3,081 $ (85 ) $ 23,046 Non-U.S. corporate 5,615 84 (13 ) 5,686 11,917 98 (27 ) 11,987 State and municipal 3,827 506 (49 ) 4,284 3,916 412 (92 ) 4,236 Mortgage and asset-backed 2,808 97 (19 ) 2,886 2,787 111 (37 ) 2,861 Government and agencies 1,769 74 (10 ) 1,833 1,842 160 (26 ) 1,976 Equity (b) 191 13 — 204 154 55 (1 ) 208 Total $ 34,464 $ 4,368 $ (136 ) $ 38,696 $ 40,665 $ 3,917 $ (269 ) $ 44,313 (a) Included $384 million and $137 million of investment securities held by GE at September 30, 2017 and December 31, 2016, respectively, of which $149 million and $86 million are equity securities. (b) Estimated fair values included $107 million and $17 million of trading securities at September 30, 2017 and December 31, 2016, respectively. Net unrealized gains (losses) recorded to earnings related to these securities were $12 million and $1 million for the three months ended and $41 million and $(2) million for the nine months ended September 30, 2017 and 2016, respectively. |
Schedule of Estimated Fair Value and Gross Unrealized Losses of Available-For-Sale Investment Securities | ESTIMATED FAIR VALUE AND GROSS UNREALIZED LOSSES OF AVAILABLE-FOR-SALE INVESTMENT SECURITIES In loss position for Less than 12 months 12 months or more (In millions) Estimated fair value Gross unrealized losses Estimated Gross September 30, 2017 Debt U.S. corporate $ 681 $ (17 ) $ 530 $ (28 ) Non-U.S. corporate 581 (4 ) 3,591 (9 ) State and municipal 125 (2 ) 270 (47 ) Mortgage and asset-backed 821 (9 ) 227 (9 ) Government and agencies 593 (9 ) 257 (1 ) Equity 3 — — — Total $ 2,805 $ (41 ) $ 4,874 $ (95 ) December 31, 2016 Debt U.S. corporate $ 1,692 $ (55 ) $ 359 $ (30 ) Non-U.S. corporate 5,352 (26 ) 14 (1 ) State and municipal 674 (27 ) 158 (64 ) Mortgage and asset-backed 822 (21 ) 132 (16 ) Government and agencies 549 (26 ) — — Equity 9 (1 ) — — Total $ 9,098 $ (157 ) $ 663 $ (111 ) |
Schedule of Contractual Maturities of Investment in Available-For-Sale Debt Securities (Excluding Mortgage and Asset-Backed Securities) | CONTRACTUAL MATURITIES OF INVESTMENT IN AVAILABLE-FOR-SALE DEBT SECURITIES (EXCLUDING MORTGAGE AND ASSET-BACKED SECURITIES) (In millions) Amortized cost Estimated fair value Due Within one year $ 5,342 $ 5,344 After one year through five years 3,577 3,796 After five years through ten years 5,639 6,171 After ten years 16,994 20,395 |
CURRENT RECEIVABLES (Tables)
CURRENT RECEIVABLES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Current Receivables | Consolidated(a)(b) GE(c) (In millions) September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 Current receivables $ 26,045 $ 24,935 $ 15,733 $ 13,562 Allowance for losses (1,019 ) (858 ) (1,008 ) (847 ) Total $ 25,026 $ 24,076 $ 14,725 $ 12,715 (a) Included GE industrial customer receivables sold to a GE Capital affiliate and recorded on GE Capital’s balance sheet of $ 11,224 million and $ 12,304 million at September 30, 2017 and December 31, 2016 , respectively. The consolidated total included a deferred purchase price receivable of $ 436 million and $ 483 million at September 30, 2017 and December 31, 2016 , respectively, related to our Receivables Facility. (b) In order to manage the credit exposure, the Company sells additional current receivables to third parties outside the Receivables Facility, substantially all of which are serviced by the Company. The outstanding balance of these current receivables was $ 2,460 million and $ 3,821 million at September 30, 2017 and December 31, 2016 , respectively. Of these balances, $ 1,284 million and $ 2,504 million was sold by GE to GE Capital prior to the sale to third parties at September 30, 2017 and December 31, 2016 , respectively. At September 30, 2017 and December 31, 2016 , our maximum exposure to loss under the limited recourse arrangements is $ 34 million and $ 215 million, respectively. (c) GE current receivables balances at September 30, 2017 and December 31, 2016 , before allowance for losses, included $ 9,912 million and $ 8,927 million, respectively, from sales of goods and services to customers. The remainder of the balances primarily relates to supplier advances, revenue sharing programs and other non-income based tax receivables. FINANCING RECEIVABLES, NET (In millions) September 30, 2017 December 31, 2016 Loans, net of deferred income $ 20,039 $ 21,101 Investment in financing leases, net of deferred income 4,923 4,998 24,962 26,099 Allowance for losses (62 ) (58 ) Financing receivables – net $ 24,900 $ 26,041 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | (In millions) September 30, 2017 December 31, 2016 Raw materials and work in process $ 13,939 $ 12,636 Finished goods 10,856 8,798 Unbilled shipments 531 536 25,327 21,971 Revaluation to LIFO 521 383 Total inventories $ 25,848 $ 22,354 |
GE CAPITAL FINANCING RECEIVAB37
GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Financing Receivables, Net | Consolidated(a)(b) GE(c) (In millions) September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 Current receivables $ 26,045 $ 24,935 $ 15,733 $ 13,562 Allowance for losses (1,019 ) (858 ) (1,008 ) (847 ) Total $ 25,026 $ 24,076 $ 14,725 $ 12,715 (a) Included GE industrial customer receivables sold to a GE Capital affiliate and recorded on GE Capital’s balance sheet of $ 11,224 million and $ 12,304 million at September 30, 2017 and December 31, 2016 , respectively. The consolidated total included a deferred purchase price receivable of $ 436 million and $ 483 million at September 30, 2017 and December 31, 2016 , respectively, related to our Receivables Facility. (b) In order to manage the credit exposure, the Company sells additional current receivables to third parties outside the Receivables Facility, substantially all of which are serviced by the Company. The outstanding balance of these current receivables was $ 2,460 million and $ 3,821 million at September 30, 2017 and December 31, 2016 , respectively. Of these balances, $ 1,284 million and $ 2,504 million was sold by GE to GE Capital prior to the sale to third parties at September 30, 2017 and December 31, 2016 , respectively. At September 30, 2017 and December 31, 2016 , our maximum exposure to loss under the limited recourse arrangements is $ 34 million and $ 215 million, respectively. (c) GE current receivables balances at September 30, 2017 and December 31, 2016 , before allowance for losses, included $ 9,912 million and $ 8,927 million, respectively, from sales of goods and services to customers. The remainder of the balances primarily relates to supplier advances, revenue sharing programs and other non-income based tax receivables. FINANCING RECEIVABLES, NET (In millions) September 30, 2017 December 31, 2016 Loans, net of deferred income $ 20,039 $ 21,101 Investment in financing leases, net of deferred income 4,923 4,998 24,962 26,099 Allowance for losses (62 ) (58 ) Financing receivables – net $ 24,900 $ 26,041 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | (In millions) September 30, 2017 December 31, 2016 Original cost $ 91,421 $ 85,875 Less accumulated depreciation and amortization (37,321 ) (35,356 ) Property, plant and equipment – net $ 54,101 $ 50,518 |
ACQUISITIONS, GOODWILL AND OT39
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Purchase Price | PRELIMINARY PURCHASE PRICE (In millions) July 3, 2017 Cash consideration $ 7,498 Fair value of the Class A Shares in BHGE issued to Baker Hughes shareholders 17,300 Total consideration for Baker Hughes $ 24,798 |
Schedule of Preliminary Identifiable Assets Acquired and Liabilities Assumed | PRELIMINARY IDENTIFIABLE ASSETS ACQUIRED AND LIABILITIES ASSUMED (In millions) July 3, 2017 Cash and cash equivalents $ 4,133 Accounts receivable 2,378 Inventories 1,975 Property, plant, and equipment - net 4,048 Other intangible assets - net (a) 4,400 All other assets 1,314 Accounts payable (1,115 ) Borrowings (3,373 ) Deferred taxes (b) (825 ) All other liabilities (2,267 ) Total identifiable net assets 10,668 Fair value of existing noncontrolling interest (77 ) Goodwill (c) 14,207 Total allocated purchase price $ 24,798 (a) The estimated fair value of intangible assets and related useful lives in the preliminary purchase price allocation include: (In millions) Estimated fair value Estimated useful life (in years) Trademarks - Baker Hughes $ 2,000 Indefinite life Customer-related 1,300 15 Patents and technology 900 10 Trademarks - Other 200 10 Total $ 4,400 (b) Includes an increase of approximately $974 million primarily related to fair value adjustments to identifiable assets and liabilities (excluding goodwill). (c) The above goodwill represents future economic benefits expected to be recognized from combining the operations of GE Oil & Gas and Baker Hughes, including expected future synergies and operating efficiencies. Goodwill resulting from the acquisition has been allocated to our Oil & Gas reporting units, of which $67 million is deductible for tax purposes. |
Schedule of Estimated Fair Value of Intangible Assets and Related Useful Lives in the Preliminary Purchase Price Allocation | The estimated fair value of intangible assets and related useful lives in the preliminary purchase price allocation include: (In millions) Estimated fair value Estimated useful life (in years) Trademarks - Baker Hughes $ 2,000 Indefinite life Customer-related 1,300 15 Patents and technology 900 10 Trademarks - Other 200 10 Total $ 4,400 |
Schedule of Unaudited Pro Forma Information | The following unaudited pro forma information has been presented as if the Baker Hughes transaction occurred on January 1, 2016. This information has been prepared by combining the historical results of the Company and historical results of Baker Hughes. The unaudited pro forma combined financial data for all periods presented were adjusted to give effect to proforma events that 1) are directly attributable to the aforementioned transaction, 2) factually supportable, and 3) expected to have a continuing impact on the consolidated results of operations. The unaudited combined pro forma results do not include any incremental cost savings that may result from the integration. The adjustments are based on information available to the Company at this time. Accordingly, the adjustments are subject to change and the impact of such changes may be material. The unaudited combined pro forma information is for informational purposes only. The pro forma information is not necessarily indicative of what the combined company’s results actually would have been had the acquisition been completed as of the beginning of the periods as indicated. In addition, the unaudited pro forma information does not purport to project the future results of the combined company. Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Revenues and other income $ 33,472 $ 31,617 $ 95,353 $ 98,029 Earnings (loss) from continuing operations 1,960 1,603 4,139 3,015 |
Schedule of Changes in Goodwill Balances | CHANGES IN GOODWILL BALANCES (In millions) January 1, 2017 Acquisitions Dispositions, Balance at Power $ 26,403 $ 55 $ (1,219 ) $ 25,239 Renewable Energy 2,507 1,503 230 4,240 Oil & Gas 10,363 14,207 315 24,885 Aviation 9,455 17 606 10,077 Healthcare 17,424 50 92 17,566 Transportation 899 — 26 925 Lighting 281 — 10 291 Capital 2,368 — 2 2,370 Corporate 739 722 16 1,476 Total $ 70,438 $ 16,553 $ 78 $ 87,068 |
Schedule of Finite-Lived Intangible Assets Subject to Amortization | OTHER INTANGIBLE ASSETS - NET (In millions) September 30, 2017 December 31, 2016 Intangible assets subject to amortization $ 19,345 $ 16,336 Indefinite-lived intangible assets(a) 2,090 100 Total $ 21,435 $ 16,436 (a) Indefinite-lived intangible assets principally comprise trademarks and in-process research and development. INTANGIBLE ASSETS SUBJECT TO AMORTIZATION September 30, 2017 December 31, 2016 (In millions) Gross carrying amount Accumulated amortization Net Gross carrying amount Accumulated amortization Net Customer-related $ 10,903 $ (2,909 ) $ 7,994 $ 9,172 $ (2,408 ) $ 6,764 Patents and technology 10,548 (3,646 ) 6,902 8,693 (3,325 ) 5,368 Capitalized software 8,268 (5,064 ) 3,204 7,652 (4,538 ) 3,114 Trademarks 1,426 (408 ) 1,018 1,165 (307 ) 858 Lease valuations 160 (76 ) 84 143 (59 ) 84 Present value of future profits(a) 709 (709 ) — 684 (684 ) — All other 245 (101 ) 144 273 (124 ) 149 Total $ 32,258 $ (12,912 ) $ 19,345 $ 27,781 $ (11,444 ) $ 16,336 (a) Balances at September 30, 2017 and December 31, 2016 include adjustments of $ 221 million and $ 241 million, respectively, to the present value of future profits in our run-off insurance activities to reflect the effects that would have been recognized had the related unrealized investment securities holding net gains actually been realized. |
Schedule of Indefinite-Lived Intangible Assets Subject to Amortization | OTHER INTANGIBLE ASSETS - NET (In millions) September 30, 2017 December 31, 2016 Intangible assets subject to amortization $ 19,345 $ 16,336 Indefinite-lived intangible assets(a) 2,090 100 Total $ 21,435 $ 16,436 (a) Indefinite-lived intangible assets principally comprise trademarks and in-process research and development. |
CONTRACT ASSETS (Tables)
CONTRACT ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Contractors [Abstract] | |
Schedule of Contract Assets | (In millions) September 30, 2017 December 31, 2016 GE Revenues in excess of billings Long-term product service agreements(a) $ 15,358 $ 12,752 Long-term equipment contract revenues(b) 7,187 5,859 Total revenues in excess of billings 22,545 18,611 Deferred inventory costs(c) 3,818 3,349 Non-recurring engineering costs(d) 2,345 2,185 Other 1,101 1,018 Contract assets $ 29,809 $ 25,162 (a) Long-term product service agreement balances are presented net of related billings in excess of revenues of $2,595 million and $3,750 million at September 30, 2017 and December 31, 2016 , respectively. (b) Reflects revenues earned in excess of billings on our long-term contracts to construct technically complex equipment (such as gas power systems). (c) Represents cost deferral for shipped goods (such as components for wind turbine assembly within our Renewable Energy segment) and other costs for which the revenue recognition criteria has not yet been met. (d) Includes costs incurred prior to production (such as requisition engineering) for long-term equipment production contracts, primarily within our Aviation segment, which are allocated ratably to each unit produced. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term and Long-term Borrowings | (In millions) September 30, 2017 December 31, 2016 Short-term borrowings GE Commercial paper $ 2,000 $ 1,500 Current portion of long-term borrowings(d) 14,623 17,109 Other 2,125 1,874 Total GE short-term borrowings(a) 18,748 20,482 GE Capital U.S. Commercial paper 5,021 5,002 Current portion of long-term borrowings(b) 5,627 6,517 Intercompany payable to GE(c) 9,971 11,696 Other 561 229 Total GE Capital short-term borrowings 21,179 23,443 Eliminations(c) (11,800 ) (13,212 ) Total short-term borrowings $ 28,127 $ 30,714 Long-term borrowings GE Senior notes(d) $ 60,314 $ 54,396 Subordinated notes 2,938 2,768 Subordinated debentures(f) 382 719 Other 1,463 928 Total GE long-term borrowings(a) 65,097 58,810 GE Capital Senior notes 41,467 44,131 Subordinated notes 214 236 Intercompany payable to GE(e) 32,623 47,084 Other(b) 1,347 1,992 Total GE Capital long-term borrowings 75,651 93,443 Eliminations(e) (33,191 ) (47,173 ) Total long-term borrowings $ 107,557 $ 105,080 Non-recourse borrowings of consolidated securitization entities(g) $ 708 $ 417 Total borrowings $ 136,392 $ 136,210 (a) Excluding assumed debt of GE Capital, the total amount of GE borrowings was $41,252 million and $20,512 million at September 30, 2017 and December 31, 2016 , respectively. (b) Included $1,653 million and $2,665 million of funding secured by aircraft and other collateral at September 30, 2017 and December 31, 2016 , respectively, of which $477 million and $1,419 million is non-recourse to GE Capital at September 30, 2017 and December 31, 2016 , respectively. (c) I ncluded a reduction of zero and $1,329 million for short-term intercompany loans from GE Capital to GE at September 30, 2017 and December 31, 2016 , respectively, which bear the right of offset against amounts owed under the assumed debt agreement. Excluding intercompany loans, total short-term assumed debt was $9,971 million and $13,024 million at September 30, 2017 and December 31, 2016 , respectively. The remaining short-term loan balance was paid in January 2017. (d) Current portion of long-term borrowings and senior notes at September 30, 2017 included $202 million and $2,923 million , respectively, of borrowings issued by BHGE. (e) Included a reduction of $7,271 million and zero for long-term intercompany loans from GE Capital to GE at September 30, 2017 and December 31, 2016 , respectively, which bear the right of offset against amounts owed under the assumed debt agreement. Excluding intercompany loans, total long-term assumed debt was $39,893 million and $47,084 million at September 30, 2017 and December 31, 2016 , respectively. The $7,271 million of intercompany loans collectively have a weighted average interest rate of 3.5% and term of approximately 15 years. (f) Comprises subordinated debentures which constitute the sole assets of trusts that have issued trust preferred securities and where GE owns 100% of the common securities of the trusts. Obligations associated with these trusts are unconditionally guaranteed by GE. (g) Included $222 million and $320 million of current portion of long-term borrowings at September 30, 2017 and December 31, 2016 , respectively. See Note 17. |
INVESTMENT CONTRACTS, INSURAN42
INVESTMENT CONTRACTS, INSURANCE LIABILITIES AND INSURANCE ANNUITY BENEFITS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Insurance [Abstract] | |
Schedule of Insurance and Investment Contract Liabilities | Insurance and investment contract liabilities comprise mainly obligations to policyholders and annuitants in our run-off insurance activities. (In millions) September 30, 2017 December 31, 2016 Future policy benefit reserves(a) Life insurance and other contracts $ 10,125 $ 10,053 Long-term care insurance contracts 9,031 8,688 19,156 18,741 Investment contracts 2,606 2,813 Claim reserves(b) 4,927 4,606 Unearned premiums and other 416 386 27,105 26,546 Eliminations (508 ) (460 ) Total $ 26,597 $ 26,086 (a) Future policy benefit reserves are accounted for mainly by a net-level premium method using estimated yields generally ranging from 3.0% to 8.5% in both 2017 and 2016. (b) Includes $3,431 million and $3,129 million related to long term-care insurance contracts at September 30, 2017 and December 31, 2016, respectively. |
POSTRETIREMENT BENEFIT PLANS (T
POSTRETIREMENT BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Effect on Operations of Pension Plans and Principal Retiree Benefit Plans | EFFECT ON OPERATIONS OF PENSION PLANS Principal pension plans Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Service cost for benefits earned $ 267 $ 307 $ 810 $ 913 Prior service cost amortization 73 76 218 228 Expected return on plan assets (847 ) (837 ) (2,545 ) (2,507 ) Interest cost on benefit obligations 715 736 2,144 2,205 Net actuarial loss amortization 702 612 2,109 1,836 Curtailment loss (gain) — — 43 (a) (1 ) Pension plans cost $ 910 $ 894 $ 2,779 $ 2,674 (a) Curtailment loss resulting from our intent to sell the Industrial Solutions business within our Power segment. Other pension plans Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Service cost for benefits earned $ 156 $ 106 $ 430 $ 337 Prior service credit amortization (2 ) — (4 ) (1 ) Expected return on plan assets (324 ) (264 ) (919 ) (786 ) Interest cost on benefit obligations 158 172 445 512 Net actuarial loss amortization 110 68 320 197 Curtailment loss 11 — 11 (a) — Pension plans cost $ 109 $ 82 $ 283 $ 259 (a) Curtailment loss resulting from a Canadian manufacturing plant closure. EFFECT ON OPERATIONS OF PRINCIPAL RETIREE BENEFIT PLANS Principal retiree benefit plans Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Service cost for benefits earned $ 25 $ 32 $ 77 $ 84 Prior service credit amortization (42 ) (41 ) (128 ) (123 ) Expected return on plan assets (9 ) (11 ) (27 ) (33 ) Interest cost on benefit obligations 55 62 168 188 Net actuarial gain amortization (20 ) (12 ) (61 ) (39 ) Curtailment loss — — 3 (a) — Retiree benefit plans cost $ 9 $ 30 $ 32 $ 77 (a) Curtailment loss resulting from our intent to sell the Industrial Solutions business within our Power segment. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Unrecognized Tax Benefits | UNRECOGNIZED TAX BENEFITS (In millions) September 30, 2017 December 31, 2016 Unrecognized tax benefits $ 5,281 $ 4,692 Portion that, if recognized, would reduce tax expense and effective tax rate(a) 3,224 2,886 Accrued interest on unrecognized tax benefits 789 615 Accrued penalties on unrecognized tax benefits 157 118 Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months 0-800 0-600 Portion that, if recognized, would reduce tax expense and effective tax rate(a) 0-700 0-500 (a) Some portion of such reduction may be reported as discontinued operations. |
SHAREOWNERS' EQUITY (Tables)
SHAREOWNERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Investment securities Beginning balance $ 866 $ 1,077 $ 674 $ 460 Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes of $45, $48, $204 and $352 54 97 363 675 Reclassifications from OCI – net of deferred taxes of $(17), $5, $(78) and $36 (32 ) 1 (150 ) 40 Other comprehensive income (loss)(a) 21 97 213 715 Less OCI attributable to noncontrolling interests 1 (2 ) 1 (1 ) Ending balance $ 887 $ 1,176 $ 887 $ 1,176 Currency translation adjustments (CTA) Beginning balance $ (5,481 ) $ (5,448 ) $ (6,816 ) $ (5,499 ) OCI before reclassifications – net of deferred taxes of $(407), $5, $(648) and $222 710 (280 ) 1,463 (138 ) Reclassifications from OCI – net of deferred taxes of $2, $(6), $(538) and $74 (196 ) 85 391 1 Other comprehensive income (loss)(a) 513 (194 ) 1,854 (138 ) Less OCI attributable to noncontrolling interests 125 0 131 6 Ending balance $ (5,092 ) $ (5,643 ) $ (5,092 ) $ (5,643 ) Cash flow hedges Beginning balance $ 22 $ (51 ) $ 12 $ (80 ) OCI before reclassifications – net of deferred taxes of $55, $(12), $53 and $(17) 175 (21 ) 239 (61 ) Reclassifications from OCI – net of deferred taxes of $(28), $6, $(37) and $7 (75 ) 52 (129 ) 121 Other comprehensive income (loss)(a) 100 30 109 60 Less OCI attributable to noncontrolling interests 3 — 3 — Ending balance $ 119 $ (21 ) $ 119 $ (21 ) Benefit plans Beginning balance $ (10,860 ) $ (10,476 ) $ (12,469 ) $ (11,410 ) Prior service credit (costs) - net of deferred taxes of $0, $0, $0 and $5 — — — 23 Net actuarial gain (loss) – net of deferred taxes of $(49), $49, $84 and $6 (132 ) 83 367 71 Net curtailment/settlement - net of deferred taxes of $3, $0, $19 and $0 8 — 38 (1 ) Prior service cost amortization – net of deferred taxes of $17, $22, $55 and $63 13 12 34 45 Net actuarial loss amortization – net of deferred taxes of $255, $216, $759 and $649 536 453 1,595 1,343 Other comprehensive income (loss)(a) 423 548 2,032 1,481 Less OCI attributable to noncontrolling interests (1 ) 6 (1 ) 5 Ending balance $ (10,436 ) $ (9,934 ) $ (10,436 ) $ (9,934 ) Accumulated other comprehensive income (loss) at September 30 $ (14,523 ) $ (14,422 ) $ (14,523 ) $ (14,422 ) (a) Total other comprehensive income (loss) was $1,058 million and $481 million in the three months ended September 30, 2017 and 2016 , respectively, and $4,209 million and $2,117 million in the nine months ended September 30, 2017 and 2016 respectively. |
Schedule of Reclassification Out of AOCI | RECLASSIFICATION OUT OF AOCI Three months ended Nine months ended September 30 September 30 (In millions) 2017 2016 2017 2016 Statement of Earnings caption Available-for-sale securities Gains (losses) on securities $ 49 $ (6 ) $ 228 $ (76 ) Total revenues and other income(a) Income taxes (17 ) 5 (78 ) 36 Benefit (provision) for income taxes(b) Net of tax $ 32 $ (1 ) $ 150 $ (40 ) Currency translation adjustments Gains (losses) on dispositions $ 194 $ (79 ) $ 147 $ (74 ) Total revenues and other income(c) Income taxes 2 (6 ) (538 ) 74 Benefit (provision) for income taxes(d) Net of tax $ 196 $ (85 ) $ (391 ) $ (1 ) Cash flow hedges Gains (losses) on interest rate derivatives $ (6 ) $ (12 ) $ (21 ) $ (67 ) Interest and other financial charges Foreign exchange contracts 98 (43 ) 176 (47 ) (e) Other 12 (3 ) 13 (14 ) (f) Total before tax 104 (57 ) 167 (128 ) Income taxes (28 ) 6 (37 ) 7 Benefit (provision) for income taxes Net of tax $ 75 $ (52 ) $ 129 $ (121 ) Benefit plan items Curtailment gain (loss) $ (11 ) $ — $ (57 ) $ 1 (g) Amortization of prior service cost (30 ) (34 ) (89 ) (108 ) (g) Amortization of actuarial gains (losses) (791 ) (669 ) (2,354 ) (1,992 ) (g) Total before tax (832 ) (703 ) (2,500 ) (2,099 ) Income taxes 275 238 833 712 Benefit (provision) for income taxes Net of tax $ (557 ) $ (465 ) $ (1,667 ) $ (1,387 ) Total reclassification adjustments (net of tax) $ (254 ) $ (602 ) $ (1,779 ) $ (1,548 ) (h) (a) Included insignificant amount s for the three months ended September 30, 2017 and 2016 , and an insignificant amount and $(72) million for the nine months ended September 30, 2017 and 2016, respectively in earnings (loss) from discontinued operations, net of taxes. (b) Included an insignificant amount and $3 million for the three months ended September 30, 2017 and 2016 , and an insignificant amount and $34 million for the nine months ended September 30, 2017 and 2016 respectively in earnings (loss) from discontinued operations, net of taxes. (c) Included zero and $(79) million for the three months ended September 30, 2017 and 2016 , and $32 m illion and $(8) million for the nine months ended September 30, 2017 and 2016 respectively in earnings (loss) from discontinued operations, net of taxes. (d) Included zero and $(7) million for the three months ended September 30, 2017 and 2016 , and $(541) million and $73 million for the nine months ended September 30, 2017 and 2016 respectively in earnings (loss) from discontinued operations, net of taxes (e) Primarily includes $105 million and $(30) million in GE Capital revenues from services and $(8) million and $(13) million in interest and other financial charges in the three months ended September 30, 2017 and 2016 , respectively and $206 million and $1 million in GE Capital revenues from services and $(30) million and $(48) million in interest and other financial charges in the nine months ended September 30, 2017 and 2016, respectively. (f) Primarily recorded in costs and expenses. (g) Curtailment gain (loss), amortization of prior service cost and actuarial gains and losses out of AOCI are included in the computation of net periodic pension costs. See Note 12 for further information. (h) Included $146 million after-tax reclassification of AOCI to additional paid in capital as a result of recognition of noncontrolling interest in GE Oil & Gas as part of Baker Hughes transaction for the three and nine months ended September 30, 2017. |
Schedule of Changes to Noncontrolling Interests | CHANGES TO NONCONTROLLING INTERESTS Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Beginning balance $ 1,634 $ 1,693 $ 1,663 $ 1,864 Net earnings (loss) (93 ) 6 (73 ) (62 ) Dividends (99 ) (25 ) (130 ) (47 ) Dispositions (77 ) (53 ) (85 ) (94 ) Other (including AOCI)(a)(b)(c) 16,582 42 16,572 1 Ending balance at September 30 $ 17,947 $ 1,663 $ 17,947 $ 1,663 (a) Includes research & development partner funding arrangements and acquisitions. (b) 2016 included $(123) million for deconsolidation of investment funds managed by GE Asset Management (GEAM) upon the adoption of ASU 2015-02, Amendments to the Consolidation Analysis, and prior to the July 1, 2016 sale of GEAM. (c) 2017 includes $16,470 million related to Baker Hughes transaction. See Note 8 for further information. |
Schedule of Changes to Redeemable Noncontrolling Interests | CHANGES TO REDEEMABLE NONCONTROLLING INTERESTS Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Beginning balance $ 3,193 $ 3,070 $ 3,025 $ 2,972 Net earnings (loss) (49 ) (82 ) (158 ) (221 ) Dividends (12 ) (8 ) (22 ) (17 ) Redemption value adjustment 63 68 177 178 Other 248 3 419 138 Ending balance at September 30(a) $ 3,441 $ 3,051 $ 3,441 $ 3,051 (a) Included $3,106 million and $2,942 million related to the Alstom joint ventures at September 30, 2017 and 2016, respectively. |
EARNINGS PER SHARE INFORMATION
EARNINGS PER SHARE INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three months ended September 30 2017 2016 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Amounts attributable to the Company: Consolidated Earnings from continuing operations for per-share calculation(a)(b) $ 1,935 $ 1,935 $ 2,127 $ 2,127 Preferred stock dividends (36 ) (36 ) (33 ) (33 ) Earnings from continuing operations attributable to common shareowners for per-share calculation(a)(b) $ 1,899 $ 1,899 $ 2,094 $ 2,094 Loss from discontinued operations for per-share calculation(a)(b) (109 ) (109 ) (100 ) (100 ) Net earnings attributable to GE common shareowners for per-share calculation(a)(b) $ 1,794 $ 1,794 $ 1,991 $ 1,991 Average equivalent shares Shares of GE common stock outstanding 8,665 8,665 8,904 8,904 Employee compensation-related shares (including stock options) 67 — 112 — Total average equivalent shares 8,732 8,665 9,016 8,904 Per-share amounts Earnings from continuing operations $ 0.22 $ 0.22 $ 0.23 $ 0.24 Loss from discontinued operations (0.01 ) (0.01 ) (0.01 ) (0.01 ) Net earnings 0.21 0.21 0.22 0.22 Nine months ended September 30 2017 2016 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Amounts attributable to the Company: Consolidated Earnings from continuing operations for per-share calculation(a)(b) $ 4,336 $ 4,336 $ 6,110 $ 6,110 Preferred stock dividends (252 ) (252 ) (474 ) (474 ) Earnings from continuing operations attributable to common shareowners for per-share calculation(a)(b) $ 4,084 $ 4,084 $ 5,636 $ 5,636 Loss from discontinued operations for per-share calculation(a)(b) (507 ) (507 ) (956 ) (956 ) Net earnings attributable to GE common shareowners for per-share calculation(a)(b) $ 3,588 $ 3,587 $ 4,680 $ 4,680 Average equivalent shares Shares of GE common stock outstanding 8,689 8,689 9,096 9,096 Employee compensation-related shares (including stock options) 85 — 105 — Total average equivalent shares 8,774 8,689 9,201 9,096 Per-share amounts Earnings from continuing operations $ 0.47 $ 0.47 $ 0.61 $ 0.62 Loss from discontinued operations (0.06 ) (0.06 ) (0.10 ) (0.11 ) Net earnings 0.41 0.41 0.51 0.51 (a) Our unvested restricted stock unit awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities. For the three months ended September 30, 2017 pursuant to the two-class method, as a result of excess dividends in respect to the current period earnings, losses were not allocated to the participating securities. For the three months ended September 30, 2016 , participating securities are included in the computation of earnings per share pursuant to the two-class method and the application of this treatment had an insignificant effect. For the nine months ended September 30, 2017 and 2016 , pursuant to the two-class method, as a result of excess dividends in respect to the current period earnings, losses were not allocated to the participating securities. (b) Included an insignificant amount of dividend equivalents in each of the periods presented. |
FINANCIAL INSTRUMENTS AND NON47
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Information About Assets and Liabilities Not Carried at Fair Value | The following table provides information about assets and liabilities not carried at fair value. The table excludes finance leases and non-financial assets and liabilities. Substantially all of the assets discussed below are considered to be Level 3. The vast majority of our liabilities’ fair value can be determined based on significant observable inputs and thus considered Level 2. Few of the instruments are actively traded and their fair values must often be determined using financial models. Realization of the fair value of these instruments depends upon market forces beyond our control, including marketplace liquidity. September 30, 2017 December 31, 2016 (In millions) Carrying Estimated Carrying Estimated GE Assets Investments and notes receivable $ 1,337 $ 1,404 $ 1,526 $ 1,595 Liabilities Borrowings(a)(b) 33,982 35,180 19,184 19,923 Borrowings (debt assumed)(a)(c) 49,864 56,894 60,109 66,998 GE Capital Assets Loans 19,994 20,069 21,060 20,830 Other commercial mortgages 1,490 1,576 1,410 1,472 Loans held for sale 1,063 1,063 473 473 Other financial instruments(d) 115 161 121 150 Liabilities Borrowings(a)(e)(f)(g) 54,945 59,327 58,523 62,024 Investment contracts 2,606 3,057 2,813 3,277 (a) See Note 10. (b) Included $ 230 million and $ 115 million of accrued interest in estimated fair value at September 30, 2017 and December 31, 2016 , respectively. (c) Included $ 575 million and $ 803 million of accrued interest in estimated fair value at September 30, 2017 and December 31, 2016 , respectively. (d) Principally comprises cost method investments. (e) Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at September 30, 2017 and December 31, 2016 would have been reduced by $ 2,604 million and $ 2,397 million, respectively. (f) Included $ 764 million and $ 775 million of accrued interest in estimated fair value at September 30, 2017 and December 31, 2016 , respectively. (g) Excluded $ 42,593 million and $ 58,780 million of net intercompany payable to GE at September 30, 2017 and December 31, 2016 , respectively. |
Schedule of Notional Amounts of Loan Commitments | NOTIONAL AMOUNTS OF LOAN COMMITMENTS (In millions) September 30, 2017 December 31, 2016 Ordinary course of business lending commitments(a) $ 1,729 $ 687 Unused revolving credit lines 232 238 (a) Excluded investment commitments of $ 451 million and $ 522 million at September 30, 2017 and December 31, 2016 , respectively. |
Schedule of Non-Recurring Fair Value Amounts and Fair Value Adjustments | The following table represents non-recurring fair value amounts (as measured at the time of the adjustment) for those assets remeasured to fair value on a non-recurring basis during the fiscal year and still held at September 30, 2017 and December 31, 2016. Remeasured during Remeasured during (In millions) Level 2 Level 3 Level 2 Level 3 Financing receivables $ — $ 10 $ — $ 30 Cost and equity method investments — 60 — 103 Long-lived assets 277 743 17 1,055 Goodwill $ — $ 191 $ — $ — Total $ 277 $ 1,004 $ 17 $ 1,189 The following table represents the fair value adjustments to assets measured at fair value on a non-recurring basis and still held at September 30, 2017 and 2016 . Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Financing receivables $ (1 ) $ — $ (1 ) $ (14 ) Cost and equity method investments (58 ) (2 ) (89 ) (95 ) Long-lived assets (671 ) (21 ) (712 ) (161 ) Goodwill $ (947 ) $ — $ (947 ) $ — Total $ (1,676 ) $ (24 ) $ (1,748 ) $ (270 ) |
Schedule of Level 3 Measurements - Significant Unobservable Inputs | LEVEL 3 MEASUREMENTS - SIGNIFICANT UNOBSERVABLE INPUTS (Dollars in millions) Fair value Valuation technique Unobservable inputs Range September 30, 2017 Non-recurring fair value measurements Cost and equity method investments $ 51 Income approach Discount rate(a) 9.0%-40.0%(13.9)% Long-lived assets 508 Income approach Discount rate(a) 2.7%-17.0% (7.2%) December 31, 2016 Non-recurring fair value measurements Financing receivables $ 30 Income approach Discount rate(a) 2.5%-30.0% (20.3%) Cost and equity method investments 94 Income approach, Discount rate(a) 9.0%-30.0% (11.8%) Long-lived assets 683 Income approach Discount rate(a) 2.5%-20.0% (10.4%) Discount rates are determined based on inputs that market participants would use when pricing investments, including credit and liquidity risk. An increase in the discount rate would result in a decrease in the fair value. |
Schedule of Financial Statement Effects - Cash Flow Hedges | FINANCIAL STATEMENT EFFECTS - CASH FLOW HEDGES Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Balance sheet changes Fair value of derivatives increase (decrease) $ 225 $ 2 $ 281 $ (43 ) Shareowners' equity (increase) decrease (225 ) (2 ) (281 ) 43 Earnings (loss) related to ineffectiveness — — — — Earnings (loss) effect of derivatives(a) 104 (57 ) 167 (128 ) (a) Offsets earnings effect of the hedged forecasted transaction |
Schedule of Financial Statement Effects - Fair Value Hedges | FINANCIAL STATEMENT EFFECTS - FAIR VALUE HEDGES Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Balance sheet changes Fair value of derivative increase (decrease) $ (148 ) $ (116 ) $ (430 ) $ 2,494 Adjustment to carrying amount of hedged debt (increase) decrease 103 37 267 (2,651 ) Earnings (loss) related to hedge ineffectiveness (45 ) (79 ) (162 ) (156 ) |
Schedule of Financial Statement Effects - Net Investment Hedges | FINANCIAL STATEMENT EFFECTS - NET INVESTMENT HEDGES Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Balance sheet changes Fair value of derivatives increase (decrease) $ (111 ) $ 107 $ (302 ) $ 154 Fair value of non-derivative instruments (increase) decrease (905 ) 475 (1,764 ) 425 Shareowners' equity (increase) decrease 1,020 (552 ) 2,082 (513 ) Earnings (loss) related to spot-forward differences and ineffectiveness 4 30 17 67 Earnings (loss) related to reclassification upon sale or liquidation(a) 18 47 78 (1,025 ) (a) Included zero and $47 million recorded in discontinued operations in the three months ended September 30, 2017 and 2016 and $59 million and $(1,026) million recorded in discontinued operations in the nine months ended September 30, 2017 and 2016 , respectively. |
Schedule of Financial Statement Effects - Economic Hedges | FINANCIAL STATEMENT EFFECTS - ECONOMIC HEDGES Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Balance sheet changes Change in fair value of economic hedge increase (decrease) $ 663 $ (686 ) $ 1,304 $ (808 ) Change in carrying amount of item being hedged increase (decrease) (920 ) 380 (1,876 ) 182 Earnings (loss) effect of economic hedges(a) (257 ) (306 ) (572 ) (626 ) (a) Offset by the future earnings effects of economically hedged item. |
Schedule of Carrying Amounts Related to Derivatives | The table below provides additional information about how derivatives are reflected in our financial statements. CARRYING AMOUNTS RELATED TO DERIVATIVES (In millions) September 30, 2017 December 31, 2016 Derivative assets $ 4,601 $ 5,467 Derivative liabilities (2,453 ) (4,883) Accrued interest 490 792 Cash collateral & credit valuation adjustment (1,816 ) (672) Net Derivatives 822 703 Securities held as collateral (437 ) (442) Net amount $ 385 $ 262 |
Schedule of Effects of Derivatives on Earnings | Three months ended September 30 Nine months ended September 30 (In millions) Effect on hedging instrument Effect on underlying Effect on earnings Effect on hedging instrument Effect on underlying Effect on earnings 2017 Cash flow hedges $ 225 $ (225 ) $ — $ 281 $ (281 ) $ — Fair value hedges (148 ) 103 (45 ) (430 ) 267 (162 ) Net investment hedges(a) (1,016 ) 1,020 4 (2,065 ) 2,082 17 Economic hedges(b) 663 (920 ) (257 ) 1,304 (1,876 ) (572 ) Total $ (298 ) $ (717 ) 2016 Cash flow hedges $ 2 $ (2 ) $ — $ (43 ) $ 43 $ — Fair value hedges (116 ) 37 (79 ) 2,494 (2,651 ) (156 ) Net investment hedges(a) 582 (552 ) 30 580 (513 ) 67 Economic hedges(b) (686 ) 380 (306 ) (808 ) 182 (626 ) Total $ (355 ) $ (715 ) The amounts in the table above generally do not include associated derivative accruals in income or expense. (a) Both derivatives and non-derivatives hedging instruments are included. (b) Net effect is substantially offset by the change in fair value of the hedged item that will affect earnings in future periods. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Variable Interest Entities [Abstract] | |
Schedule of Assets and Liabilities of Consolidated VIEs | The table below provides information about consolidated VIEs that are subject to ongoing disclosure requirements. Substantially all of these entities were created to help our customers finance the purchase of GE goods and services or to purchase GE customer notes receivable arising from sales of GE goods and services. These entities have no features that could expose us to losses that could significantly exceed the difference between the consolidated assets and liabilities. ASSETS AND LIABILITIES OF CONSOLIDATED VIEs GE Capital (In millions) GE Customer Notes receivables(a) Other Total September 30, 2017 Assets Financing receivables, net $ — $ — $ 919 $ 919 Current receivables 49 557 — 606 Investment securities — — 965 965 Other assets 541 1,273 1,895 3,709 Total $ 590 $ 1,830 $ 3,779 $ 6,199 Liabilities Borrowings $ 71 $ — $ 1,078 $ 1,149 Non-recourse borrowings — 693 16 709 Other liabilities 411 1,053 1,546 3,010 Total $ 482 $ 1,746 $ 2,640 $ 4,868 December 31, 2016 Assets Financing receivables, net $ — $ — $ 1,035 $ 1,035 Current receivables 57 670 — 727 Investment securities — — 982 982 Other assets 492 1,122 1,747 3,361 Total $ 549 $ 1,792 $ 3,764 $ 6,105 Liabilities Borrowings $ 1 $ — $ 818 $ 819 Non-recourse borrowings — 401 16 417 Other liabilities 457 1,378 1,482 3,317 Total $ 458 $ 1,779 $ 2,316 $ 4,553 (a) Two funding vehicles established to purchase customer notes receivable from GE, one of which is partially funded by third-party debt. |
COMMITMENTS, GUARANTEES, PROD49
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranties | An analysis of changes in the liability for product warranties follows. Nine months ended September 30 (In millions) 2017 2016 Balance at January 1 $ 1,920 $ 1,723 Current-year provisions 615 539 Expenditures (601 ) (539 ) Other changes(a) 255 166 Balance as of September 30 $ 2,189 $ 1,889 ( a) Primarily includes effect of currency exchange and acquisitions. |
Rollforward of the Reserve | ROLLFORWARD OF THE RESERVE Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 2017 2016 Balance, beginning of period $ 636 $ 860 $ 626 $ 875 Provision 11 — 21 84 Claim resolutions / rescissions — (195 ) — (294 ) Balance, end of period $ 647 $ 665 $ 647 $ 665 |
INTERCOMPANY TRANSACTIONS (Tabl
INTERCOMPANY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Intercompany Eliminations | Presented below is a walk of intercompany eliminations from the combined GE and GE Capital totals to the consolidated cash flows from continuing operations. Nine months ended September 30, 2017 (In millions) 2017 2016 Cash from (used for) operating activities-continuing operations Combined $ 6,103 $ 20,245 GE current receivables sold to GE Capital 1,402 675 GE Capital dividends to GE (4,016 ) (16,050 ) Other reclassifications and eliminations(a) 519 (1,024 ) Total cash from (used for) operating activities-continuing operations $ 4,008 $ 3,846 Cash from (used for) investing activities-continuing operations Combined $ 752 $ 47,548 GE current receivables sold to GE Capital (1,653 ) (622 ) GE debt effected through GE Capital 5,942 5,002 Other reclassifications and eliminations(a) (349 ) 1,631 Total cash from (used for) investing activities-continuing operations $ 4,692 $ 53,559 Cash from (used for) financing activities-continuing operations Combined $ (16,383 ) $ (85,578 ) GE current receivables sold to GE Capital 251 (54 ) GE Capital dividends to GE 4,016 16,050 GE debt effected through GE Capital (5,942 ) (5,002 ) Other reclassifications and eliminations(a) (170 ) (604 ) Total cash from (used for) financing activities-continuing operations $ (18,228 ) $ (75,188 ) (a) Includes eliminations of other cash flows activities including those related to GE Capital enabled GE industrial orders, various investments, loans and allocations of GE corporate overhead costs. |
GUARANTOR FINANCIAL INFORMATI51
GUARANTOR FINANCIAL INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Statement of Earnings (Loss) and Comprehensive Income (Loss) | CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues and other income Sales of goods and services $ 8,025 $ — $ — $ 40,741 $ (19,338 ) $ 29,428 Other income (loss) (1,152 ) — — 25,159 (21,861 ) 2,146 Equity in earnings (loss) of affiliates 5,672 — 1,019 21,123 (27,813 ) — GE Capital revenues from services — 176 209 2,785 (1,272 ) 1,898 Total revenues and other income (loss) 12,545 176 1,228 89,808 (70,284 ) 33,472 Costs and expenses Interest and other financial charges 1,671 168 542 1,279 (2,428 ) 1,232 Other costs and expenses 9,382 — — 40,253 (18,861 ) 30,774 Total costs and expenses 11,053 168 542 41,533 (21,290 ) 32,006 Earnings (loss) from continuing operations before income taxes 1,491 7 686 48,275 (48,994 ) 1,466 Benefit (provision) for income taxes 457 (1 ) — (59 ) (63 ) 334 Earnings (loss) from continuing operations 1,948 6 686 48,216 (49,058 ) 1,800 Earnings (loss) from discontinued operations, net of taxes (113 ) — (562 ) 4 565 (106 ) Net earnings (loss) 1,836 6 125 48,220 (48,493 ) 1,694 Less net earnings (loss) attributable to noncontrolling interests — — — (21 ) (121 ) (142 ) Net earnings (loss) attributable to the Company 1,836 6 125 48,241 (48,372 ) 1,836 Other comprehensive income (loss) 931 — (187 ) 19,935 (19,749 ) 931 Comprehensive income (loss) attributable to the Company $ 2,766 $ 6 $ (62 ) $ 68,176 $ (68,121 ) $ 2,766 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues and other income Sales of goods and services $ 8,194 $ — $ — $ 36,082 $ (17,462 ) $ 26,814 Other income (loss) 883 — — 35,578 (36,234 ) 227 Equity in earnings (loss) of affiliates 1,788 — 428 29,804 (32,019 ) — GE Capital revenues from services — 166 243 2,838 (1,023 ) 2,224 Total revenues and other income (loss) 10,865 166 671 104,302 (86,738 ) 29,266 Costs and expenses Interest and other financial charges 1,166 138 525 856 (1,724 ) 961 Other costs and expenses 8,498 — 16 36,101 (18,385 ) 26,230 Total costs and expenses 9,664 138 541 36,957 (20,109 ) 27,191 Earnings (loss) from continuing operations before income taxes 1,201 28 130 67,345 (66,630 ) 2,074 Benefit (provision) for income taxes 932 (3 ) (11 ) (951 ) 16 (18 ) Earnings (loss) from continuing operations 2,132 24 119 66,395 (66,614 ) 2,056 Earnings (loss) from discontinued operations, net of taxes (105 ) — (552 ) 224 328 (105 ) Net earnings (loss) 2,027 24 (433 ) 66,619 (66,286 ) 1,951 Less net earnings (loss) attributable to noncontrolling interests — — — (51 ) (25 ) (76 ) Net earnings (loss) attributable to the Company 2,027 24 (433 ) 66,670 (66,262 ) 2,027 Other comprehensive income (loss) 477 — 51 (711 ) 661 477 Comprehensive income (loss) attributable to the Company $ 2,504 $ 24 $ (382 ) $ 65,959 $ (65,601 ) $ 2,504 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues and other income Sales of goods and services $ 24,897 $ — $ — $ 114,446 $ (57,448 ) $ 81,895 Other income (loss) (1,041 ) — — 57,784 (54,132 ) 2,611 Equity in earnings (loss) of affiliates 10,444 — 1,711 71,787 (83,942 ) — GE Capital revenues from services — 505 583 7,644 (2,548 ) 6,184 Total revenues and other income (loss) 34,301 505 2,294 251,661 (198,070 ) 90,691 Costs and expenses Interest and other financial charges 3,348 477 1,485 3,582 (5,348 ) 3,545 Other costs and expenses 27,567 — 22 113,764 (58,020 ) 83,334 Total costs and expenses 30,916 478 1,507 117,346 (63,368 ) 86,879 Earnings (loss) from continuing operations before income taxes 3,385 27 787 134,315 (134,702 ) 3,812 Benefit (provision) for income taxes 971 (3 ) 115 (758 ) (22 ) 303 Earnings (loss) from continuing operations 4,356 24 902 133,557 (134,724 ) 4,115 Earnings (loss) from discontinued operations, net of taxes (501 ) — (284 ) 7 287 (490 ) Net earnings (loss) 3,856 24 618 133,564 (134,437 ) 3,624 Less net earnings (loss) attributable to noncontrolling interests — — — (53 ) (178 ) (231 ) Net earnings (loss) attributable to the Company 3,856 24 618 133,617 (134,259 ) 3,856 Other comprehensive income (loss) 4,075 — 463 (7,059 ) 6,596 4,075 Comprehensive income (loss) attributable to the Company $ 7,931 $ 24 $ 1,081 $ 126,559 $ (127,663 ) $ 7,931 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Revenues and other income Sales of goods and services $ 28,870 $ — $ — $ 108,043 $ (56,757 ) $ 80,156 Other income (loss) 845 — — 55,062 (52,522 ) 3,385 Equity in earnings (loss) of affiliates 7,923 — 1,093 58,732 (67,747 ) — GE Capital revenues from services — 762 1,262 9,182 (4,144 ) 7,063 Total revenues and other income (loss) 37,638 762 2,355 231,019 (181,170 ) 90,604 Costs and expenses Interest and other financial charges 2,828 685 2,133 4,027 (5,651 ) 4,023 Other costs and expenses 30,555 — 71 110,725 (60,906 ) 80,445 Total costs and expenses 33,383 686 2,204 114,752 (66,558 ) 84,467 Earnings (loss) from continuing operations before income taxes 4,255 76 150 116,267 (114,612 ) 6,137 Benefit (provision) for income taxes 1,862 (10 ) (58 ) (1,908 ) (189 ) (302 ) Earnings (loss) from continuing operations 6,118 67 93 114,359 (114,801 ) 5,835 Earnings (loss) from discontinued operations, net of taxes (954 ) — (1,547 ) 398 1,149 (954 ) Net earnings (loss) 5,164 67 (1,455 ) 114,757 (113,652 ) 4,881 Less net earnings (loss) attributable to noncontrolling interests — — — (143 ) (140 ) (283 ) Net earnings (loss) attributable to the Company 5,164 67 (1,455 ) 114,900 (113,512 ) 5,164 Other comprehensive income (loss) 2,107 (12 ) 114 136 (238 ) 2,107 Comprehensive income (loss) attributable to the Company $ 7,271 $ 55 $ (1,341 ) $ 115,036 $ (113,750 ) $ 7,271 |
Condensed Consolidating Statement of Financial Position | CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION SEPTEMBER 30, 2017 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Cash and equivalents $ 737 $ — $ 3 $ 39,623 $ (509 ) $ 39,854 Investment securities 1 — — 40,298 (1,603 ) 38,696 Receivables - net 51,669 17,452 31,245 87,077 (144,082 ) 43,362 Inventories 5,264 — — 24,695 (4,112 ) 25,848 Property, plant and equipment - net 5,645 — — 49,754 (1,299 ) 54,101 Investment in subsidiaries(a) 297,324 — 80,506 695,869 (1,073,699 ) — Goodwill and intangible assets 6,812 — — 84,760 16,932 108,503 All other assets 27,636 44 387 214,163 (181,348 ) 60,882 Assets of discontinued operations — — — — 6,791 6,791 Total assets $ 395,089 $ 17,497 $ 112,142 $ 1,236,239 $ (1,382,929 ) $ 378,038 Liabilities and equity Short-term borrowings $ 183,427 $ — $ 46,537 $ 23,793 $ (225,630 ) $ 28,127 Accounts payable 9,672 — — 66,041 (60,807 ) 14,907 Other current liabilities 11,479 33 3 24,418 550 36,483 Long-term and non-recourse borrowings 72,193 16,724 34,810 53,517 (68,979 ) 108,265 All other liabilities 42,212 544 137 55,881 (7,003 ) 91,772 Liabilities of discontinued operations — — — — 990 990 Total Liabilities 318,984 17,302 81,488 223,650 (360,879 ) 280,544 Redeemable noncontrolling interests — — — 2,713 727 3,441 GE shareowners' equity 76,105 195 30,654 1,008,330 (1,039,179 ) 76,105 Noncontrolling interests — — — 1,545 16,402 17,947 Total equity 76,105 195 30,654 1,009,876 (1,022,777 ) 94,052 Total liabilities, redeemable noncontrolling interests and equity $ 395,089 $ 17,497 $ 112,142 $ 1,236,239 $ (1,382,929 ) $ 378,038 (a) Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $19,301 million and net assets of discontinued operations of $3,776 million . CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2016 (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Cash and equivalents $ 2,558 $ — $ 3 $ 46,994 $ (1,426 ) $ 48,129 Investment securities 1 — — 47,394 (3,082 ) 44,313 Receivables - net 63,620 17,157 30,470 79,401 (148,385 ) 42,263 Inventories 4,654 — — 21,076 (3,377 ) 22,354 Property, plant and equipment - net 5,768 — — 46,366 (1,615 ) 50,518 Investment in subsidiaries(a) 272,685 — 80,481 492,674 (845,840 ) — Goodwill and intangible assets 8,128 — — 42,074 36,673 86,875 All other assets 14,692 44 39 201,276 (160,134 ) 55,917 Assets of discontinued operations — — — — 14,815 14,815 Total assets $ 372,107 $ 17,202 $ 110,992 $ 977,255 $ (1,112,372 ) $ 365,183 Liabilities and equity Short-term borrowings $ 167,089 $ 1 $ 46,432 $ 25,919 $ (208,727 ) $ 30,714 Accounts payable 5,412 — — 47,366 (38,343 ) 14,435 Other current liabilities 11,072 33 117 25,095 114 36,431 Long-term and non-recourse borrowings 68,983 16,486 34,389 68,912 (83,273 ) 105,496 All other liabilities 43,722 511 481 58,376 (9,656 ) 93,434 Liabilities of discontinued operations — — — — 4,158 4,158 Total Liabilities 296,279 17,030 81,419 225,667 (335,727 ) 284,668 Redeemable noncontrolling interests — — — 2,223 802 3,025 GE shareowners' equity 75,828 171 29,573 747,719 (777,463 ) 75,828 Noncontrolling interests — — — 1,647 16 1,663 Total equity 75,828 171 29,573 749,366 (777,447 ) 77,491 Total liabilities, redeemable noncontrolling interests and equity $ 372,107 $ 17,202 $ 110,992 $ 977,255 $ (1,112,372 ) $ 365,183 (a) Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $28,516 million and net assets of discontinued operations of $6,012 million . |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2017 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows – operating activities Cash from (used for) operating activities - continuing operations $ (25,937 ) $ 39 $ (81 ) $ 193,403 $ (163,416 ) $ 4,008 Cash from (used for) operating activities - discontinued operations (501 ) — — 8 3 (490 ) Cash from (used for) operating activities (26,437 ) 39 (81 ) 193,411 (163,413 ) 3,518 Cash flows – investing activities Cash from (used for) investing activities – continuing operations (1,723 ) (39 ) 345 (257,130 ) 263,239 4,692 Cash from (used for) investing activities – discontinued operations — — — (2,349 ) — (2,349 ) Cash from (used for) investing activities (1,723 ) (39 ) 345 (259,479 ) 263,239 2,343 Cash flows – financing activities Cash from (used for) financing activities – continuing operations 26,339 — (265 ) 104,160 (148,463 ) (18,228 ) Cash from (used for) financing activities – discontinued operations — — — 1,905 — 1,905 Cash from (used for) financing activities 26,339 — (265 ) 106,065 (148,463 ) (16,323 ) Effect of currency exchange rate changes on cash and equivalents — — — 1,253 — 1,253 Increase (decrease) in cash and equivalents (1,821 ) — — 41,251 (48,638 ) (9,208 ) Cash and equivalents at beginning of year 2,558 — 3 (1,132 ) 48,129 49,558 Cash and equivalents at September 30 737 — 3 40,119 (509 ) 40,350 Less cash and equivalents of discontinued operations at September 30 — — — 496 — 496 Cash and equivalents of continuing operations at September 30 $ 737 $ — $ 3 $ 39,623 $ (509 ) $ 39,854 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2016 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows – operating activities Cash from (used for) operating activities - continuing operations $ (14,847 ) $ 175 $ (121 ) $ 83,404 $ (64,766 ) $ 3,846 Cash from (used for) operating activities - discontinued operations (954 ) — — (4,366 ) (399 ) (5,719 ) Cash from (used for) operating activities (15,801 ) 175 (121 ) 79,038 (65,165 ) (1,873 ) Cash flows – investing activities Cash from (used for) investing activities – continuing operations 20,902 16,080 36,317 32,000 (51,740 ) 53,559 Cash from (used for) investing activities – discontinued operations — — — (12,056 ) — (12,056 ) Cash from (used for) investing activities 20,902 16,080 36,317 19,944 (51,740 ) 41,503 Cash flows – financing activities Cash from (used for) financing activities – continuing operations (6,894 ) (16,255 ) (36,194 ) (150,446 ) 134,601 (75,188 ) Cash from (used for) financing activities – discontinued operations — — — 295 — 295 Cash from (used for) financing activities (6,894 ) (16,255 ) (36,194 ) (150,151 ) 134,601 (74,893 ) Effect of currency exchange rate changes on cash and equivalents — — — (169 ) — (169 ) Increase (decrease) in cash and equivalents (1,792 ) — 3 (51,339 ) 17,696 (35,432 ) Cash and equivalents at beginning of year 4,137 — — 107,350 (20,609 ) 90,878 Cash and equivalents at September 30 2,344 — 3 56,011 (2,913 ) 55,445 Less cash and equivalents of discontinued operations at September 30 — — — 2,915 — 2,915 Cash and equivalents of continuing operations at September 30 $ 2,344 $ — $ 3 $ 53,095 $ (2,913 ) $ 52,530 |
SUPPLEMENTAL INFORMATION (Table
SUPPLEMENTAL INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule of Certain Supplemental Information Related to Cash Flows | Certain supplemental information related to our cash flows is shown below. Nine months ended September 30 (In millions) 2017 2016 GE All other operating activities (Gains) losses on purchases and sales of business interests(a) $ (1,968 ) $ (3,471 ) Contract assets (net)(b) (4,009 ) (3,035 ) Income taxes(c) (1,107 ) (1,318 ) Interest charges(d) 327 323 Principal pension plans(e) 1,179 2,520 Other(f) 1,636 169 $ (3,942 ) $ (4,812 ) Net dispositions (purchases) of GE shares for treasury Open market purchases under share repurchase program $ (3,394 ) $ (18,708 ) Other purchases (58 ) (430 ) Dispositions 831 1,168 $ (2,620 ) $ (17,969 ) (a) Included pre-tax gains on sales of businesses reclassified to Proceeds from principal business dispositions within Cash flows from investing activities of $(1,897) million for Water in the nine months ended September 30, 2017 , and $(3,130) million for Appliances and $(398) million for GE Asset Management in the nine months ended September 30, 2016 . (b) Contract assets are presented net of related billings in excess of revenues on our long-term product service agreements. See Note 9. (c) Reflected the effects of current tax expense (benefit) of $699 million and $953 million and net cash paid during the year for income taxes of $(1,806) million and $(2,271) million for the nine months ended September 30, 2017 and 2016 , respectively. Cash flows effects of deferred tax provisions (benefits) are shown separately within cash flows from operating activities. (d) Reflected the effects of interest expense of $1,918 million and $1,490 million and cash paid for interest of $(1,591) million and $(1,167) million for the nine months ended September 30, 2017 and 2016 , respectively. (e) Reflected the effects of pension costs of $2,779 million and $2,674 million and employer contributions of $(1,600) million and $(154) million for the nine months ended September 30, 2017 and 2016 , respectively. See Note 12. (f) Included a $512 million correction of investing cash flows used for the settlement of derivative instruments classified as operating during the the six months ended June 30, 2017. Therefore, operating cash flows were understated and investing cash flows were overstated during the the six months ended June 30, 2017. |
Schedule of Fair Value of Derivatives | The table below summarizes this activity by hedging instrument. FAIR VALUE OF DERIVATIVES September 30, 2017 December 31, 2016 (In millions) Assets Liabilities Assets Liabilities Derivatives accounted for as hedges Interest rate contracts $ 2,663 $ 108 $ 3,106 $ 210 Currency exchange contracts 233 105 402 624 Other contracts — — — — 2,895 213 3,508 834 Derivatives not accounted for as hedges Interest rate contracts 74 6 62 20 Currency exchange contracts 1,499 2,187 1,778 4,011 Other contracts 132 46 119 17 1,705 2,240 1,958 4,048 Gross derivatives recognized in statement of financial position Gross derivatives 4,601 2,453 5,467 4,883 Gross accrued interest 491 — 768 (24 ) 5,091 2,454 6,234 4,859 Amounts offset in statement of financial position Netting adjustments(a) (1,802 ) (1,802 ) (3,097 ) (3,094 ) Cash collateral(b) (2,091 ) (276 ) (2,025 ) (1,355 ) (3,893 ) (2,078 ) (5,121 ) (4,449 ) Net derivatives recognized in statement of financial position Net derivatives 1,198 376 1,113 410 Amounts not offset in statement of financial position Securities held as collateral(c) (437 ) — (442 ) — Net amount $ 761 $ 376 $ 671 $ 410 Derivatives are classified in the captions "All other assets" and "All other liabilities" and the related accrued interest is classified in "Other GE Capital receivables" and "All other liabilities" in our Statement of Financial Position. (a) The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts include fair value adjustments related to our own and counterparty non-performance risk. At September 30, 2017 and December 31, 2016 , the cumulative adjustment for non-performance risk was insignificant and $(3) million , respectively. (b) Excluded excess cash collateral received and posted of $90 million and $151 million at September 30, 2017 , respectively, and $6 million and $177 million at December 31, 2016 , respectively. (c) Excluded excess securities collateral received of $42 million and zero at September 30, 2017 and December 31, 2016 , respectively. |
Schedule of Cash Flow Hedge Activity | CASH FLOW HEDGE ACTIVITY Gain (loss) recognized in AOCI Gain (loss) reclassified for the three months ended September 30 for the three months ended September 30 (In millions) 2017 2016 2017 2016 Interest rate contracts $ 1 $ 1 $ (6 ) $ (12 ) Currency exchange contracts 224 — 110 (46 ) Commodity contracts — 1 — — Total(a) $ 225 $ 2 $ 104 $ (57 ) CASH FLOW HEDGE ACTIVITY Gain (loss) recognized in AOCI Gain (loss) reclassified for the nine months ended September 30 for the nine months ended September 30 (In millions) 2017 2016 2017 2016 Interest rate contracts $ 3 $ 32 $ (21 ) $ (67 ) Currency exchange contracts 278 (76 ) 189 (59 ) Commodity contracts — 1 — (3 ) Total(a) $ 281 $ (43 ) $ 167 $ (128 ) (a) Gain (loss) is recorded in "GE Capital revenues from services", "Interest and other financial charges", and "Other costs and expenses" in our Statement of Earnings when reclassified. |
SEGMENT OPERATIONS (Tables)
SEGMENT OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Summary of Operating Segments | SUMMARY OF OPERATING SEGMENTS Three months ended September 30 Nine months ended September 30 (In millions) 2017 2016 V% 2017 2016 V% Revenues Power(a) $ 8,679 $ 8,995 (4) % $ 26,569 $ 25,664 4 % Renewable Energy 2,905 2,770 5 % 7,406 6,533 13 % Oil & Gas 5,365 2,964 81 % 11,475 9,497 21 % Aviation 6,816 6,300 8 % 20,153 19,074 6 % Healthcare 4,724 4,482 5 % 13,714 13,190 4 % Transportation 1,074 1,249 (14) % 3,185 3,471 (8 )% Lighting(a) 483 576 (16) % 1,442 4,239 (66 )% Total industrial segment revenues 30,046 27,335 10 % 83,943 81,667 3 % Capital 2,397 2,600 (8) % 7,525 8,256 (9 )% Total segment revenues 32,444 29,936 8 % 91,468 89,923 2 % Corporate items and eliminations 1,028 (670 ) (777 ) 681 Consolidated revenues $ 33,472 $ 29,266 14 % $ 90,691 $ 90,604 — % Segment profit (loss) Power(a) $ 611 $ 1,259 (51) % $ 2,526 $ 2,924 (14 )% Renewable Energy 257 202 27 % 524 413 27 % Oil & Gas(b) (36 ) 353 U 325 981 (67 )% Aviation 1,680 1,494 12 % 4,856 4,366 11 % Healthcare 820 717 14 % 2,289 2,130 7 % Transportation 276 309 (11) % 634 747 (15 )% Lighting(a) 23 (15 ) F 43 196 (78 )% Total industrial segment profit 3,630 4,320 (16) % 11,198 11,756 (5 )% Capital 24 26 (8 )% (195 ) (1,466 ) 87 % Total segment profit (loss) 3,654 4,345 (16 )% 11,003 10,290 7 % Corporate items and eliminations (1,095 ) (1,524 ) (4,687 ) (2,120 ) GE interest and other financial charges (718 ) (483 ) (1,918 ) (1,490 ) GE benefit (provision) for income taxes 64 (241 ) (297 ) (1,034 ) Earnings (loss) from continuing operations attributable to GE common shareowners 1,905 2,097 (9) % 4,101 5,645 (27 )% Earnings (loss) from discontinued operations, net of taxes (106 ) (105 ) (1 )% (490 ) (954 ) 49 % Less net earnings attributable to noncontrolling interests, discontinued operations (1 ) (2 ) 6 2 Earnings (loss) from discontinued operations, net of tax and noncontrolling interest (105 ) (103 ) (2 )% (497 ) (956 ) 48 % Consolidated net earnings (loss) attributable to the GE common shareowners $ 1,800 $ 1,994 (10) % $ 3,604 $ 4,689 (23 )% (a) Beginning in the third quarter of 2017, the Energy Connections business within the former Energy Connections & Lighting segment was combined with the Power segment and presented as one reporting segment called Power. As a result of this combination, our GE Lighting and Current, powered by GE (Current) businesses are now reported as a separate segment called Lighting. (b) Oil & Gas segment operating profit excluding restructuring and other charges was $231 million and $593 million for the three and nine months ended September 30, 2017, respectively. |
BUSINESSES HELD FOR SALE AND 54
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 25, 2017 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Assets of business to be disposed of | $ 6,791 | $ 6,791 | $ 6,791 | $ 14,815 | |||
Liabilities business to be disposed of | 990 | 990 | 990 | 4,158 | |||
Proceeds from sale of business to Suez | 1,018 | $ 53,250 | |||||
Held-for-sale, not discontinued operations | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Assets of business to be disposed of | 2,369 | 2,369 | 2,369 | 1,745 | |||
Liabilities business to be disposed of | 561 | 561 | 561 | 656 | |||
Discontinued operations | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Assets of business to be disposed of | 6,791 | 6,791 | 6,791 | 14,815 | |||
Liabilities business to be disposed of | 990 | 990 | 990 | $ 4,158 | |||
After-tax gain recognized | 14 | $ (389) | $ (86) | $ (1,261) | |||
Discontinued operations | Lower limit | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Term of various services under the TSAs | 12 months | ||||||
Discontinued operations | Maximum | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Term of various services under the TSAs | 24 months | ||||||
Industrial Solutions | Power | Held-for-sale, not discontinued operations | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Assets of business to be disposed of | $ 2,220 | ||||||
Liabilities business to be disposed of | 561 | ||||||
Consideration for business to be disposed of | $ 2,600 | ||||||
Water | Power | Not discontinued operations, disposed of by sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from sale of business to Suez | 3,041 | ||||||
After-tax gain recognized | $ 1,872 | ||||||
Water | Power | GE Capital | Not discontinued operations, disposed of by sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Sale of receivables from GE Capital to Suez | $ 122 |
BUSINESSES HELD FOR SALE AND 55
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS - Schedule of Financial Information for Assets and Liabilities of Businesses Held for Sale (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Assets | $ 6,791 | $ 14,815 |
Liabilities | ||
Liabilities | 990 | 4,158 |
GE Capital | ||
Assets | ||
Assets | 6,791 | 14,806 |
Liabilities | ||
Liabilities | 966 | 4,123 |
GE Capital | GE Capital | ||
Assets | ||
Current receivables | 148 | 117 |
Held for sale | ||
Assets | ||
Current receivables | 339 | 366 |
Inventories | 361 | 211 |
Property, plant, and equipment – net | 390 | 632 |
Goodwill | 1,050 | 212 |
Other intangible assets – net | 130 | 123 |
Contract assets | 52 | 125 |
Other | 46 | 76 |
Assets | 2,369 | 1,745 |
Liabilities | ||
Accounts payable | 219 | 190 |
Progress collections and price adjustments accrued | 21 | 141 |
Other current liabilities | 131 | 133 |
Non-current compensation and benefits | 152 | 82 |
Other | 38 | 110 |
Liabilities | $ 561 | $ 656 |
BUSINESSES HELD FOR SALE AND 56
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS - Schedule of Financial Information for Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Disposal | |||||
Earnings (loss) from discontinued operations, net of taxes | $ (106) | $ (105) | $ (490) | $ (954) | |
Assets | |||||
Cash and equivalents | 496 | 2,915 | 496 | 2,915 | |
Assets | 6,791 | 6,791 | $ 14,815 | ||
Liabilities | |||||
Liabilities | 990 | 990 | 4,158 | ||
Discontinued operations | |||||
Operations | |||||
Total revenues and other income (loss) | 35 | 633 | 123 | 2,494 | |
Earnings (loss) from discontinued operations before income taxes | (191) | 6 | (603) | (154) | |
Benefit (provision) for income taxes | 71 | 278 | 198 | 460 | |
Earnings (loss) from discontinued operations, net of taxes | (120) | 284 | (404) | 306 | |
Disposal | |||||
Gain (loss) on disposal before income taxes | 22 | (50) | 3 | (591) | |
Benefit (provision) for income taxes | (8) | (339) | (89) | (670) | |
Gain (loss) on disposal, net of taxes | 14 | (389) | (86) | (1,261) | |
Earnings (loss) from discontinued operations, net of taxes | (106) | (105) | (490) | (954) | |
Earnings (loss) from discontinued operations attributable to the Company, before income taxes | (168) | (43) | (606) | (746) | |
Assets | |||||
Cash and equivalents | 496 | 496 | 1,429 | ||
Investment securities | 1,131 | 1,131 | 2,626 | ||
Deferred income taxes | 969 | 969 | 487 | ||
Financing receivables held for sale | 3,631 | 3,631 | 8,547 | ||
Other assets | 564 | 564 | 1,727 | ||
Assets | 6,791 | 6,791 | 14,815 | ||
Liabilities | |||||
Accounts payable | 51 | 51 | 164 | ||
Borrowings | 0 | 0 | 2,076 | ||
Other liabilities | 939 | 939 | 1,918 | ||
Liabilities | 990 | 990 | 4,158 | ||
GE Capital | |||||
Disposal | |||||
Earnings (loss) from discontinued operations, net of taxes | (106) | (105) | (494) | (954) | |
Assets | |||||
Cash and equivalents | 496 | 2,915 | 496 | 2,915 | |
Assets | 6,791 | 6,791 | 14,806 | ||
Liabilities | |||||
Liabilities | 966 | 966 | $ 4,123 | ||
GE Capital | Discontinued operations | |||||
Disposal | |||||
Current tax benefit (provision) | (63) | 726 | (386) | (154) | |
Deferred tax benefit (provision) | 126 | (787) | 495 | (56) | |
GE Capital | Discontinued operations | U.S. Federal | |||||
Disposal | |||||
Current tax benefit (provision) | $ 1 | $ 678 | $ (518) | $ 207 |
INVESTMENT SECURITIES - Schedul
INVESTMENT SECURITIES - Schedule of Investment Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized cost | $ 34,464 | $ 34,464 | $ 40,665 | |||
Gross unrealized gains | 4,368 | 4,368 | 3,917 | |||
Gross unrealized losses | (136) | (136) | (269) | |||
Estimated fair value | 38,696 | 38,696 | 44,313 | |||
Investment securities | 38,696 | 38,696 | 44,313 | |||
Trading securities included in estimated fair values | 107 | 107 | 17 | |||
Net unrealized gains (losses) recorded to earnings related to trading securities | 12 | $ 1 | 41 | $ (2) | ||
U.S. corporate | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized cost | 20,255 | 20,255 | 20,049 | |||
Gross unrealized gains | 3,594 | 3,594 | 3,081 | |||
Gross unrealized losses | (45) | (45) | (85) | |||
Estimated fair value | 23,804 | 23,804 | 23,046 | |||
Non-U.S. corporate | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized cost | 5,615 | 5,615 | 11,917 | |||
Gross unrealized gains | 84 | 84 | 98 | |||
Gross unrealized losses | (13) | (13) | (27) | |||
Estimated fair value | 5,686 | 5,686 | 11,987 | |||
State and municipal | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized cost | 3,827 | 3,827 | 3,916 | |||
Gross unrealized gains | 506 | 506 | 412 | |||
Gross unrealized losses | (49) | (49) | (92) | |||
Estimated fair value | 4,284 | 4,284 | 4,236 | |||
Mortgage and asset-backed | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized cost | 2,808 | 2,808 | 2,787 | |||
Gross unrealized gains | 97 | 97 | 111 | |||
Gross unrealized losses | (19) | (19) | (37) | |||
Estimated fair value | 2,886 | 2,886 | 2,861 | |||
Government and agencies | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized cost | 1,769 | 1,769 | 1,842 | |||
Gross unrealized gains | 74 | 74 | 160 | |||
Gross unrealized losses | (10) | (10) | (26) | |||
Estimated fair value | 1,833 | 1,833 | 1,976 | |||
Equity | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized cost | 191 | 191 | 154 | |||
Gross unrealized gains | 13 | 13 | 55 | |||
Gross unrealized losses | 0 | 0 | (1) | |||
Estimated fair value | 204 | 204 | 208 | |||
GE | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Investment securities | [1] | 384 | 384 | 137 | ||
Equity securities | $ 149 | $ 149 | $ 86 | |||
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Pre-tax, other-than-temporary impairments on investment securities | $ 0 | $ 28 | |||
Gross realized gains on available-for-sale investment securities | $ 54 | $ 7 | 197 | 49 | |
Gross realized losses | (5) | (12) | (9) | (52) | |
Proceeds from investment securities sales and early redemptions by issuers | 659 | $ 416 | 2,433 | $ 1,283 | |
Level 3 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cost and equity method investments | $ 4,452 | $ 4,452 | $ 4,406 |
INVESTMENT SECURITIES - Sched59
INVESTMENT SECURITIES - Schedule of Estimated Fair Value and Gross Unrealized Losses of Available-For-Sale Investment Securities (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Estimated fair value | ||
Less than 12 months | $ 2,805 | $ 9,098 |
12 months or more | 4,874 | 663 |
Gross unrealized losses | ||
Less than 12 months | (41) | (157) |
12 months or more | (95) | (111) |
U.S. corporate | ||
Estimated fair value | ||
Less than 12 months | 681 | 1,692 |
12 months or more | 530 | 359 |
Gross unrealized losses | ||
Less than 12 months | (17) | (55) |
12 months or more | (28) | (30) |
Non-U.S. corporate | ||
Estimated fair value | ||
Less than 12 months | 581 | 5,352 |
12 months or more | 3,591 | 14 |
Gross unrealized losses | ||
Less than 12 months | (4) | (26) |
12 months or more | (9) | (1) |
State and municipal | ||
Estimated fair value | ||
Less than 12 months | 125 | 674 |
12 months or more | 270 | 158 |
Gross unrealized losses | ||
Less than 12 months | (2) | (27) |
12 months or more | (47) | (64) |
Mortgage and asset-backed | ||
Estimated fair value | ||
Less than 12 months | 821 | 822 |
12 months or more | 227 | 132 |
Gross unrealized losses | ||
Less than 12 months | (9) | (21) |
12 months or more | (9) | (16) |
Government and agencies | ||
Estimated fair value | ||
Less than 12 months | 593 | 549 |
12 months or more | 257 | 0 |
Gross unrealized losses | ||
Less than 12 months | (9) | (26) |
12 months or more | (1) | 0 |
Equity | ||
Estimated fair value | ||
Less than 12 months | 3 | 9 |
12 months or more | 0 | 0 |
Gross unrealized losses | ||
Less than 12 months | 0 | (1) |
12 months or more | $ 0 | $ 0 |
INVESTMENT SECURITIES - Sched60
INVESTMENT SECURITIES - Schedule of Contractual Maturities of Investment in Available-For-Sale Debt Securities (Excluding Mortgage and Asset-Backed Securities) (Details) $ in Millions | Sep. 30, 2017USD ($) |
Amortized cost | |
Within one year | $ 5,342 |
After one year through five years | 3,577 |
After five years through ten years | 5,639 |
After ten years | 16,994 |
Estimated fair value | |
Within one year | 5,344 |
After one year through five years | 3,796 |
After five years through ten years | 6,171 |
After ten years | $ 20,395 |
CURRENT RECEIVABLES - Schedule
CURRENT RECEIVABLES - Schedule of Current Receivables (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Current receivables | $ 26,045 | $ 24,935 | |
Allowance for losses | (1,019) | (858) | |
Total | 25,026 | 24,076 | |
Outstanding balance of current receivables | 2,460 | 3,821 | |
Receivables Facility | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Deferred purchase price receivable | 436 | 483 | |
Outstanding balance of current receivables | 2,903 | ||
Maximum exposure to under limited recourse arrangements | 34 | 215 | |
GE | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Current receivables | 15,733 | 13,562 | |
Allowance for losses | (1,008) | (847) | |
Total | [1] | 14,725 | 12,715 |
GE Industrial customer receivables sold to a GE Capital affiliate | 11,224 | 12,304 | |
GE current receivables balances, before allowance for losses | 9,912 | 8,927 | |
GE Capital | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Outstanding balance of current receivables | $ 1,284 | $ 2,504 | |
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
CURRENT RECEIVABLES - Narrative
CURRENT RECEIVABLES - Narrative (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Cash collections on previously sold current receivables | $ 14,729,000,000 | |
Transferred receivables that remain outstanding | 2,460,000,000 | $ 3,821,000,000 |
GE Capital | GE Industrial customer receivables sold to GE Capital | ||
Related Party Transaction [Line Items] | ||
Current receivables sold to GE Capital | 15,057,000,000 | |
Loss resulting from discount on sale of receivables | 100,000,000 | |
Receivables Facility | ||
Related Party Transaction [Line Items] | ||
Revolving Receivables Facility | 3,200,000,000 | |
Cash collections on previously sold current receivables | 12,681,000,000 | |
Amount reinvested by the purchasing entities | 461,000,000 | |
Transferred receivables that remain outstanding | $ 2,903,000,000 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials and work in process | $ 13,939 | $ 12,636 |
Finished goods | 10,856 | 8,798 |
Unbilled shipments | 531 | 536 |
Total inventories before revaluation to LIFO | 25,327 | 21,971 |
Revaluation to LIFO | 521 | 383 |
Total inventories | $ 25,848 | $ 22,354 |
GE CAPITAL FINANCING RECEIVAB64
GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES - Schedule of Financing Receivables, Net (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables – net | $ 12,228 | $ 12,242 |
Financing Receivables Portfolio Segment | GE Capital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 24,962 | 26,099 |
Allowance for losses | (62) | (58) |
Financing receivables – net | 24,900 | 26,041 |
Financing Receivables Portfolio Segment | GE Capital | Loans, net of deferred income | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 20,039 | 21,101 |
Financing Receivables Portfolio Segment | GE Capital | Investment in financing leases, net of deferred income | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | $ 4,923 | $ 4,998 |
GE CAPITAL FINANCING RECEIVAB65
GE CAPITAL FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES - Narrative (Details) - Financing Receivables Portfolio Segment - GE Capital - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables on nonaccrual | $ 317 | $ 322 |
Percent of financing receivables on nonaccrual | 1.30% | 1.20% |
Nonaccrual financing receivables currently paying in accordance with contractual terms | $ 271 | |
Recorded investment in impaired loans | 352 | $ 262 |
Troubled debt restructurings included in impaired loans | 137 | |
Over 30 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables past due | $ 718 | $ 811 |
Percent of financing receivables over 30 days past due | 2.90% | 3.10% |
Over 90 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables past due | $ 165 | $ 407 |
Percent of financing receivables over 90 days past due | 0.70% | 1.60% |
PROPERTY, PLANT AND EQUIPMENT66
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||||
Original cost | $ 91,421 | $ 91,421 | $ 85,875 | ||
Less accumulated depreciation and amortization | (37,321) | (37,321) | (35,356) | ||
Property, plant and equipment – net | 54,101 | 54,101 | $ 50,518 | ||
Consolidated depreciation and amortization on property, plant and equipment | $ 1,397 | $ 1,136 | $ 3,715 | $ 3,641 |
ACQUISITIONS, GOODWILL AND OT67
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - ACQUISITIONS (Narrative) (Details) - USD ($) $ in Millions | May 23, 2017 | Apr. 20, 2017 | Sep. 14, 2016 | Aug. 16, 2016 | May 10, 2016 | Mar. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||||||
Payment for acquisition | $ 6,053 | $ 930 | |||||||
Goodwill | $ 87,068 | $ 70,438 | |||||||
LM Wind Power | |||||||||
Business Acquisition [Line Items] | |||||||||
Payment for acquisition | $ 1,700 | ||||||||
Goodwill | 1,300 | ||||||||
Amortizable intangible assets | $ 200 | ||||||||
ServiceMax | |||||||||
Business Acquisition [Line Items] | |||||||||
Payment for acquisition | $ 867 | ||||||||
Goodwill | 670 | ||||||||
Amortizable intangible assets | $ 280 | ||||||||
Ownership interest acquired (as a percent) | 96.00% | ||||||||
Cash acquired | $ 91 | ||||||||
Previously held equity interest (as a percent) | 4.00% | ||||||||
Meridium Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 360 | ||||||||
Amortizable intangible assets | $ 150 | ||||||||
Ownership interest acquired (as a percent) | 74.00% | ||||||||
Cash paid for acquisition | $ 369 | ||||||||
Previously held equity interest (as a percent) | 26.00% | ||||||||
Doosan Engineering & Construction | |||||||||
Business Acquisition [Line Items] | |||||||||
Payment for acquisition | $ 220 | $ 250 | |||||||
Goodwill | $ 160 | ||||||||
Amortizable intangible assets | $ 36 | ||||||||
Ownership interest acquired (as a percent) | 15.00% | ||||||||
Previously held equity interest (as a percent) | 80.00% | ||||||||
Consideration for remaining HRSG business | $ 35 | ||||||||
Remaining business subject to local regulatory requirements (as a percent) | 5.00% |
ACQUISITIONS, GOODWILL AND OT68
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - BAKER HUGHES (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 03, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Business Acquisition [Line Items] | ||||
Increase in additional paid in capital | [1] | $ 1,199 | $ (404) | |
BHGE Inc. | ||||
Business Acquisition [Line Items] | ||||
Increase in additional paid in capital | $ 1,131 | |||
BHGE Inc. | GE | ||||
Business Acquisition [Line Items] | ||||
Contribution to fund cash dividend to existing Baker Hughes shareholders | $ 7,498 | |||
Interest held in partnership (as a percent) | 62.50% | |||
Total consideration | $ 24,798 | |||
Noncontrolling interest recorded | $ 16,470 | |||
BHGE Inc. | GE | Class B Common Stock | ||||
Business Acquisition [Line Items] | ||||
Interest held in partnership (as a percent) | 62.50% | |||
BHGE Inc. | Baker Hughes | ||||
Business Acquisition [Line Items] | ||||
Interest held in partnership (as a percent) | 37.50% | |||
BHGE Inc. | New Baker Hughes | Baker Hughes | ||||
Business Acquisition [Line Items] | ||||
Special one-time cash dividend (in dollars per share) | $ 17.50 | |||
BHGE Inc. | New Baker Hughes | Baker Hughes | Class A Common Stock | ||||
Business Acquisition [Line Items] | ||||
Shares received at closing (in shares) | 1 | |||
[1] | The Baker Hughes transaction resulted in an increase to additional paid in capital of $1,131 million. See Note 8 for further information. |
ACQUISITIONS, GOODWILL AND OT69
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Preliminary Purchase Price (Details) - Baker Hughes $ in Millions | Jul. 03, 2017USD ($) |
Business Acquisition [Line Items] | |
Cash consideration | $ 7,498 |
Fair value of the Class A Shares in BHGE issued to Baker Hughes shareholders | 17,300 |
Total consideration for Baker Hughes | $ 24,798 |
ACQUISITIONS, GOODWILL AND OT70
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Preliminary Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Jul. 03, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 87,068 | $ 70,438 | |
Oil & Gas | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 24,885 | $ 10,363 | |
Baker Hughes | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 4,133 | ||
Accounts receivable | 2,378 | ||
Inventories | 1,975 | ||
Property, plant, and equipment - net | 4,048 | ||
Other intangible assets - net | 4,400 | ||
All other assets | 1,314 | ||
Accounts payable | (1,115) | ||
Borrowings | (3,373) | ||
Deferred taxes | (825) | ||
All other liabilities | (2,267) | ||
Total identifiable net assets | 10,668 | ||
Fair value of existing noncontrolling interest | (77) | ||
Goodwill | 14,207 | ||
Total allocated purchase price | 24,798 | ||
Increase primarily related to fair value adjustments to identifiable assets and liabilities (excluding goodwill) | 974 | ||
Baker Hughes | Oil & Gas | |||
Business Acquisition [Line Items] | |||
Goodwill deductible for tax purposes | $ 67 |
ACQUISITIONS, GOODWILL AND OT71
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Estimated Fair Value of Intangible Assets and Related Useful Lives in the Preliminary Purchase Price Allocation (Details) - Baker Hughes $ in Millions | Jul. 03, 2017USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated fair value, finite-lived intangible assets acquired | $ 4,400 |
Trademarks - Other | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Estimated fair value, indefinite-lived intangible assets | 2,000 |
Customer-related | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated fair value, finite-lived intangible assets acquired | $ 1,300 |
Estimated useful life | 15 years |
Patents and technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated fair value, finite-lived intangible assets acquired | $ 900 |
Estimated useful life | 10 years |
Trademarks - Other | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated fair value, finite-lived intangible assets acquired | $ 200 |
Estimated useful life | 10 years |
ACQUISITIONS, GOODWILL AND OT72
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - INCOME TAXES (Narrative) (Details) - BHGE LLC $ in Millions | Jul. 03, 2017USD ($) |
Business Acquisition [Line Items] | |
Share of tax benefits (as a percent) | 100.00% |
Tax obligations and benefits assumed | |
Business Acquisition [Line Items] | |
Tax obligations assumed related to the formation of the transaction | $ 35 |
GE | |
Business Acquisition [Line Items] | |
Economic ownership of the partnership (as a percent) | 62.50% |
Baker Hughes | |
Business Acquisition [Line Items] | |
Economic ownership of the partnership (as a percent) | 37.50% |
ACQUISITIONS, GOODWILL AND OT73
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - ACQUISITION COSTS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Business Combinations [Abstract] | ||
Acquisition costs expensed as incurred | $ 159 | $ 310 |
ACQUISITIONS, GOODWILL AND OT74
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - UNAUDITED ACTUAL AND PRO FORMA INFORMATION (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2016 | |
BHGE LLC | ||
Business Acquisition [Line Items] | ||
Consolidated Revenues and other income related to the Baker Hughes contributed business | $ 2,541 | |
Consolidated Earnings (loss) from continuing operations related to the Baker Hughes contributed business | $ (441) | |
Baker Hughes | ||
Business Acquisition [Line Items] | ||
Non-recurring contractually obligated termination fee, gross | $ 3,500 | |
Non-recurring contractually obligated termination fee, net of related costs incurred | $ 3,320 |
ACQUISITIONS, GOODWILL AND OT75
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Unaudited Pro Forma Information (Details) - Baker Hughes - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Business Acquisition [Line Items] | ||||
Revenues and other income | $ 33,472 | $ 31,617 | $ 95,353 | $ 98,029 |
Earnings (loss) from continuing operations | $ 1,960 | $ 1,603 | $ 4,139 | $ 3,015 |
ACQUISITIONS, GOODWILL AND OT76
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Changes in Goodwill Balances (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill | |
Beginning balance | $ 70,438 |
Acquisitions | 16,553 |
Dispositions, currency exchange and other | 78 |
Ending balance | 87,068 |
Power | |
Goodwill | |
Beginning balance | 26,403 |
Acquisitions | 55 |
Dispositions, currency exchange and other | (1,219) |
Ending balance | 25,239 |
Renewable Energy | |
Goodwill | |
Beginning balance | 2,507 |
Acquisitions | 1,503 |
Dispositions, currency exchange and other | 230 |
Ending balance | 4,240 |
Oil & Gas | |
Goodwill | |
Beginning balance | 10,363 |
Acquisitions | 14,207 |
Dispositions, currency exchange and other | 315 |
Ending balance | 24,885 |
Aviation | |
Goodwill | |
Beginning balance | 9,455 |
Acquisitions | 17 |
Dispositions, currency exchange and other | 606 |
Ending balance | 10,077 |
Healthcare | |
Goodwill | |
Beginning balance | 17,424 |
Acquisitions | 50 |
Dispositions, currency exchange and other | 92 |
Ending balance | 17,566 |
Transportation | |
Goodwill | |
Beginning balance | 899 |
Acquisitions | 0 |
Dispositions, currency exchange and other | 26 |
Ending balance | 925 |
Lighting | |
Goodwill | |
Beginning balance | 281 |
Acquisitions | 0 |
Dispositions, currency exchange and other | 10 |
Ending balance | 291 |
Capital | |
Goodwill | |
Beginning balance | 2,368 |
Acquisitions | 0 |
Dispositions, currency exchange and other | 2 |
Ending balance | 2,370 |
Corporate | |
Goodwill | |
Beginning balance | 739 |
Acquisitions | 722 |
Dispositions, currency exchange and other | 16 |
Ending balance | $ 1,476 |
ACQUISITIONS, GOODWILL AND OT77
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - GOODWILL (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($)reporting_unit | Dec. 31, 2016USD ($) | |
Business Combinations [Abstract] | |||
Increase in goodwill balances | $ 16,630 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Goodwill | $ 87,068 | $ 87,068 | $ 70,438 |
Lower limit | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate used in reporting unit valuations | 10.00% | ||
Upper limit | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate used in reporting unit valuations | 18.00% | ||
Power | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Non-cash, non-tax deductible goodwill impairment loss, before tax | 947 | ||
Non-cash, non-tax deductible goodwill impairment loss, net of tax | 940 | ||
Implied fair value | 191 | $ 191 | |
Number of reporting units for which the fair value was not substantially in excess of its carrying value | reporting_unit | 1 | ||
Goodwill | $ 25,239 | $ 25,239 | $ 26,403 |
Goodwill of Grid Solutions reporting unit (as a percent) | 5.00% | 5.00% | |
Power Conversion | Power | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value in excess of carrying value (as a percent) | 2.00% | 2.00% | |
Grid Solutions | Power | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value in excess of carrying value (as a percent) | 3.00% | 3.00% | |
Goodwill | $ 4,418 | $ 4,418 |
ACQUISITIONS, GOODWILL AND OT78
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Other Intangible Assets - Net (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Business Combinations [Abstract] | ||
Intangible assets subject to amortization | $ 19,345 | $ 16,336 |
Indefinite-lived intangible assets | 2,090 | 100 |
Total | $ 21,435 | $ 16,436 |
ACQUISITIONS, GOODWILL AND OT79
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 32,258 | $ 27,781 |
Accumulated amortization | (12,912) | (11,444) |
Net | 19,345 | 16,336 |
Run-off insurance activities | ||
Finite-Lived Intangible Assets [Line Items] | ||
Adjustments to present value of future profits | 221 | 241 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 10,903 | 9,172 |
Accumulated amortization | (2,909) | (2,408) |
Net | 7,994 | 6,764 |
Patents and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 10,548 | 8,693 |
Accumulated amortization | (3,646) | (3,325) |
Net | 6,902 | 5,368 |
Capitalized software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 8,268 | 7,652 |
Accumulated amortization | (5,064) | (4,538) |
Net | 3,204 | 3,114 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,426 | 1,165 |
Accumulated amortization | (408) | (307) |
Net | 1,018 | 858 |
Lease valuations | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 160 | 143 |
Accumulated amortization | (76) | (59) |
Net | 84 | 84 |
Present value of future profits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 709 | 684 |
Accumulated amortization | (709) | (684) |
Net | 0 | 0 |
All other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 245 | 273 |
Accumulated amortization | (101) | (124) |
Net | $ 144 | $ 149 |
ACQUISITIONS, GOODWILL AND OT80
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS - OTHER INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Business Acquisition [Line Items] | ||||
Increase in intangible assets subject to amortization | $ 3,009 | |||
GE | ||||
Business Acquisition [Line Items] | ||||
Amortization expense related to intangible assets | $ 522 | $ 405 | 1,424 | $ 1,268 |
GE Capital | ||||
Business Acquisition [Line Items] | ||||
Amortization expense related to intangible assets | $ 16 | $ 33 | $ 50 | $ 103 |
CONTRACT ASSETS - Schedule of C
CONTRACT ASSETS - Schedule of Contract Assets (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Deferred inventory costs | $ 3,818 | $ 3,349 |
Non-recurring engineering costs | 2,345 | 2,185 |
Other | 1,101 | 1,018 |
Contract assets | 29,809 | 25,162 |
Related billings in excess of revenues | 2,595 | 3,750 |
GE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total revenues in excess of billings | 22,545 | 18,611 |
GE | Long-term product service agreements | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total revenues in excess of billings | 15,358 | 12,752 |
GE | Long-term equipment contract revenues | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total revenues in excess of billings | $ 7,187 | $ 5,859 |
CONTRACT ASSETS - Narrative (De
CONTRACT ASSETS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Increase in revenues in excess of billings, long-term service agreements | $ 2,606 | |||
Increase in revenues in excess of billings, long-term equipment contracts | 1,328 | |||
Cumulative catch up adjustment driven by lower forecasted costs and increased forecasted revenue | 1,930 | |||
Increase in long-term service agreements due to timing of revenue recognized for work performed relative to billings and collections | 676 | |||
Increase in revenue in excess of billings for equipment contracts due to timing of revenue recognized for work performed relative to the timing of billing and collections | 1,328 | |||
Remaining increase in contract assets primarily due to increase in deferred inventory costs and non-recurring engineering costs | 712 | |||
Change in estimated profitability driven primarily by cost execution and increased productivity | Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Change in estimated profitability | $ 649 | $ 588 | $ 1,930 | $ 1,714 |
BORROWINGS - Schedule of Short-
BORROWINGS - Schedule of Short-term and Long-term Borrowings, Short-term (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Dec. 02, 2015 | ||
Short-term borrowings | ||||
Total short-term borrowings | $ 28,127,000,000 | $ 30,714,000,000 | ||
Eliminations | (11,800,000,000) | (13,212,000,000) | ||
Long-term borrowings | ||||
Total long-term borrowings | 107,557,000,000 | 105,080,000,000 | ||
Eliminations | (33,191,000,000) | (47,173,000,000) | ||
Total borrowings | 136,392,000,000 | 136,210,000,000 | ||
Amounts included in GE Capital | 2,529,000,000 | |||
Total short-term assumed debt excluding intercompany loans | 9,971,000,000 | 13,024,000,000 | ||
Total long-term assumed debt excluding intercompany loans | $ 39,893,000,000 | 47,084,000,000 | ||
Weighted average interest rate | 3.50% | |||
Weighted average term of intercompany loans | 15 years | |||
Current portion of long-term borrowings | $ 708,000,000 | 417,000,000 | ||
GE | ||||
Short-term borrowings | ||||
Total short-term borrowings | 18,748,000,000 | 20,482,000,000 | ||
Long-term borrowings | ||||
Total long-term borrowings | 65,097,000,000 | 58,810,000,000 | ||
GE | GE borrowings | ||||
Long-term borrowings | ||||
GE borrowings excluding assumed debt of GE Capital | 41,252,000,000 | 20,512,000,000 | ||
GE | Commercial paper | ||||
Short-term borrowings | ||||
Total short-term borrowings | 2,000,000,000 | 1,500,000,000 | ||
GE | Current portion of long-term borrowings | ||||
Short-term borrowings | ||||
Total short-term borrowings | 14,623,000,000 | 17,109,000,000 | ||
GE | Other | ||||
Short-term borrowings | ||||
Total short-term borrowings | 2,125,000,000 | 1,874,000,000 | ||
GE Capital | ||||
Short-term borrowings | ||||
Total short-term borrowings | 21,179,000,000 | 23,443,000,000 | ||
Long-term borrowings | ||||
Total long-term borrowings | 75,651,000,000 | 93,443,000,000 | ||
GE Capital | Intercompany Payable To GE | ||||
Long-term borrowings | ||||
Short-term intercompany loans from GE Capital to GE | 0 | 1,329,000,000 | ||
Long-term intercompany loans from GE Capital to GE | 7,271,000,000 | 0 | ||
GE Capital | Funding secured by aircraft and other collateral | ||||
Long-term borrowings | ||||
Amounts included in GE Capital | 1,653,000,000 | 2,665,000,000 | ||
GE Capital | Non-recourse to GE Capital | ||||
Long-term borrowings | ||||
Amounts included in GE Capital | 477,000,000 | 1,419,000,000 | ||
GE Capital | Commercial paper | ||||
Short-term borrowings | ||||
Total short-term borrowings | 5,021,000,000 | 5,002,000,000 | ||
GE Capital | Current portion of long-term borrowings | ||||
Short-term borrowings | ||||
Total short-term borrowings | 5,627,000,000 | 6,517,000,000 | ||
GE Capital | Other | ||||
Short-term borrowings | ||||
Total short-term borrowings | 561,000,000 | 229,000,000 | ||
GE Capital | Intercompany Payable To GE | ||||
Short-term borrowings | ||||
Total short-term borrowings | 9,971,000,000 | 11,696,000,000 | ||
Consolidated securitization entities | ||||
Short-term borrowings | ||||
Total short-term borrowings | [1] | 21,179,000,000 | 23,443,000,000 | |
Long-term borrowings | ||||
Current portion of long-term borrowings | 708,000,000 | 417,000,000 | ||
Consolidated securitization entities | Intercompany Payable To GE | ||||
Long-term borrowings | ||||
GE borrowings excluding assumed debt of GE Capital | 42,593,000,000 | 58,780,000,000 | ||
Non-recourse borrowings of consolidated securitization entities | Current portion of long-term borrowings | ||||
Long-term borrowings | ||||
Current portion of long-term borrowings | 222,000,000 | 320,000,000 | ||
Non-recourse borrowings of consolidated securitization entities | Consolidated securitization entities | ||||
Long-term borrowings | ||||
GE borrowings excluding assumed debt of GE Capital | 44,526,000,000 | $ 92,537,000,000 | ||
Intercompany Payable To GE | GE Capital | ||||
Long-term borrowings | ||||
Total long-term borrowings | 32,623,000,000 | 47,084,000,000 | ||
Senior notes | GE | ||||
Long-term borrowings | ||||
Total long-term borrowings | 60,314,000,000 | 54,396,000,000 | ||
Senior notes | GE Capital | ||||
Long-term borrowings | ||||
Total long-term borrowings | 41,467,000,000 | 44,131,000,000 | ||
Senior notes | BHGE | ||||
Long-term borrowings | ||||
Current portion of long-term borrowings issued by Baker Hughes | 202,000,000 | |||
Senior notes issued by Baker Hughes | 2,923,000,000 | |||
Subordinated notes | GE | ||||
Long-term borrowings | ||||
Total long-term borrowings | 2,938,000,000 | 2,768,000,000 | ||
Subordinated notes | GE Capital | ||||
Long-term borrowings | ||||
Total long-term borrowings | 214,000,000 | 236,000,000 | ||
Subordinated debentures | GE | ||||
Long-term borrowings | ||||
Total long-term borrowings | 382,000,000 | 719,000,000 | ||
Other | GE | ||||
Long-term borrowings | ||||
Total long-term borrowings | 1,463,000,000 | 928,000,000 | ||
Other | GE Capital | ||||
Long-term borrowings | ||||
Total long-term borrowings | 1,347,000,000 | 1,992,000,000 | ||
Non-recourse borrowings of consolidated securitization entities | Consolidated securitization entities | ||||
Long-term borrowings | ||||
Total long-term borrowings | $ 708,000,000 | $ 417,000,000 | ||
[1] | In 2015, senior unsecured notes and commercial paper were assumed by GE upon its merger with GE Capital, resulting in an intercompany receivable and payable between GE and GE Capital. See Note 10. |
BORROWINGS - Schedule of Shor84
BORROWINGS - Schedule of Short-term and Long-term Borrowings, Long-term (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Dec. 02, 2015 | ||
Short-term borrowings | ||||
Total short-term borrowings | $ 28,127,000,000 | $ 30,714,000,000 | ||
Eliminations | (11,800,000,000) | (13,212,000,000) | ||
Long-term borrowings | ||||
Total long-term borrowings | 107,557,000,000 | 105,080,000,000 | ||
Eliminations | (33,191,000,000) | (47,173,000,000) | ||
Total borrowings | 136,392,000,000 | 136,210,000,000 | ||
Amounts included in GE Capital | 2,529,000,000 | |||
Total short-term assumed debt excluding intercompany loans | 9,971,000,000 | 13,024,000,000 | ||
Total long-term assumed debt excluding intercompany loans | $ 39,893,000,000 | 47,084,000,000 | ||
Weighted average interest rate | 3.50% | |||
Weighted average term of intercompany loans | 15 years | |||
Current portion of long-term borrowings | $ 708,000,000 | 417,000,000 | ||
GE | ||||
Short-term borrowings | ||||
Total short-term borrowings | 18,748,000,000 | 20,482,000,000 | ||
Long-term borrowings | ||||
Total long-term borrowings | 65,097,000,000 | 58,810,000,000 | ||
GE | GE borrowings | ||||
Long-term borrowings | ||||
GE borrowings excluding assumed debt of GE Capital | 41,252,000,000 | 20,512,000,000 | ||
GE | Commercial paper | ||||
Short-term borrowings | ||||
Total short-term borrowings | 2,000,000,000 | 1,500,000,000 | ||
GE | Current portion of long-term borrowings | ||||
Short-term borrowings | ||||
Total short-term borrowings | 14,623,000,000 | 17,109,000,000 | ||
GE | Other | ||||
Short-term borrowings | ||||
Total short-term borrowings | 2,125,000,000 | 1,874,000,000 | ||
GE Capital | ||||
Short-term borrowings | ||||
Total short-term borrowings | 21,179,000,000 | 23,443,000,000 | ||
Long-term borrowings | ||||
Total long-term borrowings | 75,651,000,000 | 93,443,000,000 | ||
GE Capital | Intercompany Payable To GE | ||||
Long-term borrowings | ||||
Short-term intercompany loans from GE Capital to GE | 0 | 1,329,000,000 | ||
Long-term intercompany loans from GE Capital to GE | 7,271,000,000 | 0 | ||
GE Capital | Funding secured by aircraft and other collateral | ||||
Long-term borrowings | ||||
Amounts included in GE Capital | 1,653,000,000 | 2,665,000,000 | ||
GE Capital | Non-recourse to GE Capital | ||||
Long-term borrowings | ||||
Amounts included in GE Capital | 477,000,000 | 1,419,000,000 | ||
GE Capital | Commercial paper | ||||
Short-term borrowings | ||||
Total short-term borrowings | 5,021,000,000 | 5,002,000,000 | ||
GE Capital | Current portion of long-term borrowings | ||||
Short-term borrowings | ||||
Total short-term borrowings | 5,627,000,000 | 6,517,000,000 | ||
GE Capital | Intercompany Payable To GE | ||||
Short-term borrowings | ||||
Total short-term borrowings | 9,971,000,000 | 11,696,000,000 | ||
GE Capital | Other | ||||
Short-term borrowings | ||||
Total short-term borrowings | 561,000,000 | 229,000,000 | ||
Consolidated securitization entities | ||||
Short-term borrowings | ||||
Total short-term borrowings | [1] | 21,179,000,000 | 23,443,000,000 | |
Long-term borrowings | ||||
Current portion of long-term borrowings | 708,000,000 | 417,000,000 | ||
Consolidated securitization entities | Intercompany Payable To GE | ||||
Long-term borrowings | ||||
GE borrowings excluding assumed debt of GE Capital | 42,593,000,000 | 58,780,000,000 | ||
Non-recourse borrowings of consolidated securitization entities | Current portion of long-term borrowings | ||||
Long-term borrowings | ||||
Current portion of long-term borrowings | 222,000,000 | 320,000,000 | ||
Non-recourse borrowings of consolidated securitization entities | Consolidated securitization entities | ||||
Long-term borrowings | ||||
GE borrowings excluding assumed debt of GE Capital | 44,526,000,000 | $ 92,537,000,000 | ||
Intercompany Payable To GE | GE Capital | ||||
Long-term borrowings | ||||
Total long-term borrowings | 32,623,000,000 | 47,084,000,000 | ||
Senior notes | GE | ||||
Long-term borrowings | ||||
Total long-term borrowings | 60,314,000,000 | 54,396,000,000 | ||
Senior notes | GE Capital | ||||
Long-term borrowings | ||||
Total long-term borrowings | 41,467,000,000 | 44,131,000,000 | ||
Senior notes | BHGE | ||||
Long-term borrowings | ||||
Current portion of long-term borrowings issued by Baker Hughes | 202,000,000 | |||
Senior notes issued by Baker Hughes | 2,923,000,000 | |||
Subordinated notes | GE | ||||
Long-term borrowings | ||||
Total long-term borrowings | 2,938,000,000 | 2,768,000,000 | ||
Subordinated notes | GE Capital | ||||
Long-term borrowings | ||||
Total long-term borrowings | 214,000,000 | 236,000,000 | ||
Subordinated debentures | GE | ||||
Long-term borrowings | ||||
Total long-term borrowings | 382,000,000 | 719,000,000 | ||
Other | GE | ||||
Long-term borrowings | ||||
Total long-term borrowings | 1,463,000,000 | 928,000,000 | ||
Other | GE Capital | ||||
Long-term borrowings | ||||
Total long-term borrowings | 1,347,000,000 | 1,992,000,000 | ||
Non-recourse borrowings of consolidated securitization entities | Consolidated securitization entities | ||||
Long-term borrowings | ||||
Total long-term borrowings | $ 708,000,000 | $ 417,000,000 | ||
[1] | In 2015, senior unsecured notes and commercial paper were assumed by GE upon its merger with GE Capital, resulting in an intercompany receivable and payable between GE and GE Capital. See Note 10. |
BORROWINGS - Narrative (Details
BORROWINGS - Narrative (Details) $ in Millions | Sep. 30, 2017USD ($) | Jun. 30, 2017EUR (€) | Dec. 02, 2015USD ($) |
GE Capital | Non-recourse borrowings of consolidated securitization entities | |||
Guarantor Obligations [Line Items] | |||
Debt assumed by GE upon merger | $ | $ 44,526 | $ 92,537 | |
Senior unsecured debt | GE | |||
Guarantor Obligations [Line Items] | |||
Senior unsecured debt issued by GE | € 8,000,000,000 | ||
Senior unsecured debt | 0.375% Notes due 2022 | GE | |||
Guarantor Obligations [Line Items] | |||
Senior unsecured debt issued by GE | € 1,750,000,000 | ||
Stated interest rate | 0.375% | ||
Senior unsecured debt | 0.875% Notes due 2025 | GE | |||
Guarantor Obligations [Line Items] | |||
Senior unsecured debt issued by GE | € 2,000,000,000 | ||
Stated interest rate | 0.875% | ||
Senior unsecured debt | 1.50% Notes due 2029 | GE | |||
Guarantor Obligations [Line Items] | |||
Senior unsecured debt issued by GE | € 2,250,000,000 | ||
Stated interest rate | 1.50% | ||
Senior unsecured debt | 2.125% Notes due 2037 | GE | |||
Guarantor Obligations [Line Items] | |||
Senior unsecured debt issued by GE | € 2,000,000,000 | ||
Stated interest rate | 2.125% |
INVESTMENT CONTRACTS, INSURAN86
INVESTMENT CONTRACTS, INSURANCE LIABILITIES AND INSURANCE ANNUITY BENEFITS - Schedule of Insurance and Investment Contract Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Future policy benefit reserves | ||
Life insurance and other contracts | $ 10,125 | $ 10,053 |
Long-term care insurance contracts | 9,031 | 8,688 |
Future policy benefit reserves | 19,156 | 18,741 |
Investment contracts | 2,606 | 2,813 |
Claim reserves | 4,927 | 4,606 |
Unearned premiums and other | 416 | 386 |
Insurance and investment contract liabilities before eliminations | 27,105 | 26,546 |
Eliminations | (508) | (460) |
Total | 26,597 | 26,086 |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Claim reserves related to long-term care insurance contracts | $ 4,927 | $ 4,606 |
Minimum | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Estimated yield (as a percent) | 3.00% | 3.00% |
Maximum | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Estimated yield (as a percent) | 8.50% | 8.50% |
Long-term care insurance | ||
Future policy benefit reserves | ||
Claim reserves | $ 3,431 | $ 3,129 |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Claim reserves related to long-term care insurance contracts | $ 3,431 | $ 3,129 |
INVESTMENT CONTRACTS, INSURAN87
INVESTMENT CONTRACTS, INSURANCE LIABILITIES AND INSURANCE ANNUITY BENEFITS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Insurance [Abstract] | |||||
Reinsurance recoverables | $ 2,182 | $ 2,182 | $ 2,038 | ||
Reinsurance recoveries | $ 104 | $ 78 | $ 339 | $ 225 |
POSTRETIREMENT BENEFIT PLANS (D
POSTRETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Principal pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost for benefits earned | $ 267 | $ 307 | $ 810 | $ 913 |
Prior service cost (credit) amortization | 73 | 76 | 218 | 228 |
Expected return on plan assets | (847) | (837) | (2,545) | (2,507) |
Interest cost on benefit obligations | 715 | 736 | 2,144 | 2,205 |
Net actuarial loss (gain) amortization | 702 | 612 | 2,109 | 1,836 |
Curtailment loss (gain) | 0 | 0 | 43 | (1) |
Plans cost | 910 | 894 | 2,779 | 2,674 |
Other pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Threshold to be included in other pension plans (greater than) | 50 | 50 | ||
Service cost for benefits earned | 156 | 106 | 430 | 337 |
Prior service cost (credit) amortization | (2) | 0 | (4) | (1) |
Expected return on plan assets | (324) | (264) | (919) | (786) |
Interest cost on benefit obligations | 158 | 172 | 445 | 512 |
Net actuarial loss (gain) amortization | 110 | 68 | 320 | 197 |
Curtailment loss (gain) | 11 | 0 | 11 | 0 |
Plans cost | 109 | 82 | 283 | 259 |
Principal retiree benefit plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost for benefits earned | 25 | 32 | 77 | 84 |
Prior service cost (credit) amortization | (42) | (41) | (128) | (123) |
Expected return on plan assets | (9) | (11) | (27) | (33) |
Interest cost on benefit obligations | 55 | 62 | 168 | 188 |
Net actuarial loss (gain) amortization | (20) | (12) | (61) | (39) |
Curtailment loss (gain) | 0 | 0 | 3 | 0 |
Plans cost | $ 9 | $ 30 | $ 32 | $ 77 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Effective income tax rate | (7.90%) | 4.90% | |
Unrecognized tax benefits | $ 5,281 | $ 4,692 | |
Portion that, if recognized, would reduce tax expense and effective tax rate | 3,224 | 2,886 | |
Accrued interest on unrecognized tax benefits | 789 | 615 | |
Accrued penalties on unrecognized tax benefits | 157 | 118 | |
Lower limit | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Portion that, if recognized, would reduce tax expense and effective tax rate | 0 | 0 | |
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months | 0 | 0 | |
Upper limit | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Portion that, if recognized, would reduce tax expense and effective tax rate | 700 | 500 | |
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months | $ 800 | $ 600 |
SHAREOWNERS' EQUITY - Schedule
SHAREOWNERS' EQUITY - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | $ 77,491 | |||
Reclassifications from OCI – net of deferred taxes | $ 254 | $ 602 | 1,779 | $ 1,548 |
Other comprehensive income (loss) | 1,058 | 481 | 4,209 | 2,117 |
Less OCI attributable to noncontrolling interests | 127 | 5 | 134 | 10 |
Accumulated other comprehensive income (loss) at September 30 | 94,052 | 83,544 | 94,052 | 83,544 |
Investment securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 866 | 1,077 | 674 | 460 |
Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes | 54 | 97 | 363 | 675 |
Reclassifications from OCI – net of deferred taxes | (32) | 1 | (150) | 40 |
Other comprehensive income (loss) | 21 | 97 | 213 | 715 |
Less OCI attributable to noncontrolling interests | 1 | (2) | 1 | (1) |
Accumulated other comprehensive income (loss) at September 30 | 887 | 1,176 | 887 | 1,176 |
Deferred taxes, other comprehensive income (loss) (OCI) before reclassifications | 45 | 48 | 204 | 352 |
Deferred taxes, reclassifications from OCI | (17) | 5 | (78) | 36 |
Currency translation adjustments (CTA) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (5,481) | (5,448) | (6,816) | (5,499) |
Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes | 710 | (280) | 1,463 | (138) |
Reclassifications from OCI – net of deferred taxes | (196) | 85 | 391 | 1 |
Other comprehensive income (loss) | 513 | (194) | 1,854 | (138) |
Less OCI attributable to noncontrolling interests | 125 | 0 | 131 | 6 |
Accumulated other comprehensive income (loss) at September 30 | (5,092) | (5,643) | (5,092) | (5,643) |
Deferred taxes, other comprehensive income (loss) (OCI) before reclassifications | (407) | 5 | (648) | 222 |
Deferred taxes, reclassifications from OCI | 2 | (6) | (538) | 74 |
Cash flow hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 22 | (51) | 12 | (80) |
Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes | 175 | (21) | 239 | (61) |
Reclassifications from OCI – net of deferred taxes | (75) | 52 | (129) | 121 |
Other comprehensive income (loss) | 100 | 30 | 109 | 60 |
Less OCI attributable to noncontrolling interests | 3 | 0 | 3 | 0 |
Accumulated other comprehensive income (loss) at September 30 | 119 | (21) | 119 | (21) |
Deferred taxes, other comprehensive income (loss) (OCI) before reclassifications | 55 | (12) | 53 | (17) |
Deferred taxes, reclassifications from OCI | (28) | 6 | (37) | 7 |
Benefit plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (10,860) | (10,476) | (12,469) | (11,410) |
Reclassifications from OCI – net of deferred taxes | 557 | 465 | 1,667 | 1,387 |
Other comprehensive income (loss) | 423 | 548 | 2,032 | 1,481 |
Less OCI attributable to noncontrolling interests | (1) | 6 | (1) | 5 |
Accumulated other comprehensive income (loss) at September 30 | (10,436) | (9,934) | (10,436) | (9,934) |
Deferred taxes, reclassifications from OCI | 275 | 238 | 833 | 712 |
Prior service credit (costs)/Prior service cost amortization - net of deferred taxes | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes | 0 | 0 | 0 | 23 |
Reclassifications from OCI – net of deferred taxes | 13 | 12 | 34 | 45 |
Deferred taxes, other comprehensive income (loss) (OCI) before reclassifications | 0 | 0 | 0 | 5 |
Deferred taxes, reclassifications from OCI | 17 | 22 | 55 | 63 |
Net actuarial gain (loss)/Net actuarial loss amortization – net of deferred taxes | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes | (132) | 83 | 367 | 71 |
Reclassifications from OCI – net of deferred taxes | 536 | 453 | 1,595 | 1,343 |
Deferred taxes, other comprehensive income (loss) (OCI) before reclassifications | (49) | 49 | 84 | 6 |
Deferred taxes, reclassifications from OCI | 255 | 216 | 759 | 649 |
Net curtailment/settlement - net of deferred taxes of $X, $0, $X and $0 | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes | 8 | 0 | 38 | (1) |
Deferred taxes, other comprehensive income (loss) (OCI) before reclassifications | 3 | 0 | 19 | 0 |
Accumulated other comprehensive income (loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Accumulated other comprehensive income (loss) at September 30 | $ (14,523) | $ (14,422) | $ (14,523) | $ (14,422) |
SHAREOWNERS' EQUITY - Schedul91
SHAREOWNERS' EQUITY - Schedule of Reclassification Out of AOCI (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total revenues and other income | $ 33,472,000,000 | $ 29,266,000,000 | $ 90,691,000,000 | $ 90,604,000,000 |
Benefit (provision) for income taxes | 334,000,000 | (18,000,000) | 303,000,000 | (302,000,000) |
Earnings (loss) from continuing operations | 1,800,000,000 | 2,056,000,000 | 4,115,000,000 | 5,835,000,000 |
Interest and other financial charges | 1,232,000,000 | 961,000,000 | 3,545,000,000 | 4,023,000,000 |
GE Capital revenues from services | 1,898,000,000 | 2,224,000,000 | 6,184,000,000 | 7,063,000,000 |
Other | 32,006,000,000 | 27,191,000,000 | 86,879,000,000 | 84,467,000,000 |
Earnings (loss) from continuing operations before income taxes | 1,466,000,000 | 2,074,000,000 | 3,812,000,000 | 6,137,000,000 |
Total reclassification adjustments (net of tax) | (254,000,000) | (602,000,000) | (1,779,000,000) | (1,548,000,000) |
Available-for-sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit plan items, Benefit (provision) for income taxes | (17,000,000) | 5,000,000 | (78,000,000) | 36,000,000 |
Total reclassification adjustments (net of tax) | 32,000,000 | (1,000,000) | 150,000,000 | (40,000,000) |
Available-for-sale securities | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total revenues and other income | 49,000,000 | (6,000,000) | 228,000,000 | (76,000,000) |
Benefit (provision) for income taxes | (17,000,000) | 5,000,000 | (78,000,000) | 36,000,000 |
Earnings (loss) from continuing operations | 32,000,000 | (1,000,000) | 150,000,000 | (40,000,000) |
Available-for-sale securities | Reclassification out of Accumulated Other Comprehensive Income | Discontinued operations | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total revenues and other income | 0 | 0 | 0 | (72,000,000) |
Benefit (provision) for income taxes | 0 | 3,000,000 | 0 | 34,000,000 |
Currency translation adjustments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit plan items, Benefit (provision) for income taxes | 2,000,000 | (6,000,000) | (538,000,000) | 74,000,000 |
Total reclassification adjustments (net of tax) | 196,000,000 | (85,000,000) | (391,000,000) | (1,000,000) |
Currency translation adjustments | Discontinued operations | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total revenues and other income | 0 | (79,000,000) | 32,000,000 | (8,000,000) |
Benefit (provision) for income taxes | 0 | (7,000,000) | (541,000,000) | 73,000,000 |
Currency translation adjustments | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total revenues and other income | 194,000,000 | (79,000,000) | 147,000,000 | (74,000,000) |
Benefit (provision) for income taxes | 2,000,000 | (6,000,000) | (538,000,000) | 74,000,000 |
Earnings (loss) from continuing operations | 196,000,000 | (85,000,000) | (391,000,000) | (1,000,000) |
Cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit plan items, Benefit (provision) for income taxes | (28,000,000) | 6,000,000 | (37,000,000) | 7,000,000 |
Total reclassification adjustments (net of tax) | 75,000,000 | (52,000,000) | 129,000,000 | (121,000,000) |
Cash flow hedges | Foreign exchange contracts | Discontinued operations | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest and other financial charges | (8,000,000) | (13,000,000) | (30,000,000) | (48,000,000) |
GE Capital revenues from services | 105,000,000 | (30,000,000) | 206,000,000 | 1,000,000 |
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit (provision) for income taxes | (28,000,000) | 6,000,000 | (37,000,000) | 7,000,000 |
Earnings (loss) from continuing operations | 75,000,000 | (52,000,000) | 129,000,000 | (121,000,000) |
Earnings (loss) from continuing operations before income taxes | 104,000,000 | (57,000,000) | 167,000,000 | (128,000,000) |
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Gains (losses) on interest rate derivatives | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest and other financial charges | (6,000,000) | (12,000,000) | (21,000,000) | (67,000,000) |
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Foreign exchange contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
GE Capital revenues from services | 98,000,000 | (43,000,000) | 176,000,000 | (47,000,000) |
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Other | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other | 12,000,000 | (3,000,000) | 13,000,000 | (14,000,000) |
Benefit plan items | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit plan items, reclassifications | (832,000,000) | (703,000,000) | (2,500,000,000) | (2,099,000,000) |
Benefit plan items, Benefit (provision) for income taxes | 275,000,000 | 238,000,000 | 833,000,000 | 712,000,000 |
Total reclassification adjustments (net of tax) | (557,000,000) | (465,000,000) | (1,667,000,000) | (1,387,000,000) |
Curtailment gain (loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit plan items, reclassifications | (11,000,000) | 0 | (57,000,000) | 1,000,000 |
Amortization of prior service cost | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit plan items, reclassifications | (30,000,000) | (34,000,000) | (89,000,000) | (108,000,000) |
Benefit plan items, Benefit (provision) for income taxes | 17,000,000 | 22,000,000 | 55,000,000 | 63,000,000 |
Total reclassification adjustments (net of tax) | (13,000,000) | (12,000,000) | (34,000,000) | (45,000,000) |
Amortization of actuarial gains (losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit plan items, reclassifications | (791,000,000) | (669,000,000) | (2,354,000,000) | (1,992,000,000) |
Benefit plan items, Benefit (provision) for income taxes | 255,000,000 | 216,000,000 | 759,000,000 | 649,000,000 |
Total reclassification adjustments (net of tax) | (536,000,000) | $ (453,000,000) | (1,595,000,000) | $ (1,343,000,000) |
Additional paid in capital | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassification adjustments (net of tax) | $ 146,000,000 | $ 146,000,000 |
SHAREOWNERS' EQUITY - Schedul92
SHAREOWNERS' EQUITY - Schedule of Changes to Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |||
Stockholders' Equity Attributable to Noncontrolling Interest | ||||||
Beginning balance | $ 1,634 | $ 1,693 | $ 1,663 | [1] | $ 1,864 | |
Net earnings (loss) | (93) | 6 | (73) | (62) | ||
Dividends | (99) | (25) | (130) | (47) | ||
Dispositions | (77) | (53) | (85) | (94) | ||
Other (including AOCI) | 16,582 | 42 | 16,572 | 1 | ||
Ending balance at September 30 | 17,947 | [1] | $ 1,663 | 17,947 | [1] | 1,663 |
GEAM | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest | ||||||
Other (including AOCI) | $ (123) | |||||
Baker Hughes | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest | ||||||
Other (including AOCI) | $ 16,470 | $ 16,470 | ||||
[1] | Included AOCI attributable to noncontrolling interests of $(144) million and $(278) million at September 30, 2017 and December 31, 2016, respectively. |
SHAREOWNERS' EQUITY - Narrative
SHAREOWNERS' EQUITY - Narrative (Details) | Nov. 02, 2015joint_venture | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)joint_venture | Sep. 30, 2016USD ($) |
Equity [Abstract] | |||||
Number of joint ventures formed as part of the Alstom acquisition | joint_venture | 3 | 4 | |||
Related Party Transaction [Line Items] | |||||
Cash dividends from GE Capital to GE | $ 4,016,000,000 | $ 16,050,000,000 | |||
Dividends on GE preferred stock | 36,000,000 | $ 33,000,000 | 252,000,000 | 474,000,000 | |
Cash dividends on GE preferred stock | 147,000,000 | $ 184,000,000 | |||
GE Capital | GE | |||||
Related Party Transaction [Line Items] | |||||
Dividends from GE Capital to GE | $ 0 | $ 5,050,000,000 | $ 4,105,000,000 |
SHAREOWNERS' EQUITY - Schedul94
SHAREOWNERS' EQUITY - Schedule of Changes to Redeemable Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Stockholders' Equity Attributable to Noncontrolling Interest | |||||
Beginning balance | $ 3,193 | $ 3,070 | $ 3,025 | $ 2,972 | $ 2,972 |
Net earnings (loss) | (49) | (82) | (158) | (221) | |
Dividends | (12) | (8) | (22) | (17) | |
Redemption value adjustment | 63 | 68 | 177 | 178 | |
Other | 248 | 3 | 419 | 138 | |
Ending balance | $ 3,441 | 3,051 | 3,441 | 3,051 | 3,025 |
Alstom Acquisition | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | |||||
Ending balance | $ 2,942 | $ 2,942 | |||
Alstom Acquisition | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | |||||
Redeemable non-controlling interest | $ 3,106 | $ 2,709 |
EARNINGS PER SHARE INFORMATIO95
EARNINGS PER SHARE INFORMATION (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Diluted | ||||
Earnings from continuing operations for per-share calculation | $ 1,935 | $ 2,127 | $ 4,336 | $ 6,110 |
Preferred stock dividends | (36) | (33) | (252) | (474) |
Earnings from continuing operations attributable to common shareowners for per-share calculation | 1,899 | 2,094 | 4,084 | 5,636 |
Loss from discontinued operations for per-share calculation | (109) | (100) | (507) | (956) |
Net earnings attributable to GE common shareowners for per-share calculation | $ 1,794 | $ 1,991 | $ 3,588 | $ 4,680 |
Shares of GE common stock outstanding | 8,665 | 8,904 | 8,689 | 9,096 |
Employee compensation-related shares (including stock options) | 67 | 112 | 85 | 105 |
Total average equivalent shares | 8,732 | 9,016 | 8,774 | 9,201 |
Earnings from continuing operations (in dollars per share) | $ 0.22 | $ 0.23 | $ 0.47 | $ 0.61 |
Loss from discontinued operations (in dollars per share) | (0.01) | (0.01) | (0.06) | (0.10) |
Net earnings (in dollars per share) | $ 0.21 | $ 0.22 | $ 0.41 | $ 0.51 |
Basic | ||||
Earnings from continuing operations for per-share calculation | $ 1,935 | $ 2,127 | $ 4,336 | $ 6,110 |
Preferred stock dividends | (36) | (33) | (252) | (474) |
Earnings from continuing operations attributable to common shareowners for per-share calculation | 1,899 | 2,094 | 4,084 | 5,636 |
Loss from discontinued operations for per-share calculation | (109) | (100) | (507) | (956) |
Net earnings attributable to GE common shareowners for per-share calculation | $ 1,794 | $ 1,991 | $ 3,587 | $ 4,680 |
Shares of GE common stock outstanding | 8,665 | 8,904 | 8,689 | 9,096 |
Employee compensation-related shares (including stock options) | 0 | 0 | 0 | 0 |
Total average equivalent shares | 8,665 | 8,904 | 8,689 | 9,096 |
Earnings from continuing operations (in dollars per share) | $ 0.22 | $ 0.24 | $ 0.47 | $ 0.62 |
Loss from discontinued operations (in dollars per share) | (0.01) | (0.01) | (0.06) | (0.11) |
Net earnings (in dollars per share) | $ 0.21 | $ 0.22 | $ 0.41 | $ 0.51 |
Outstanding stock awards not included in the computation of diluted earnings per share (in shares) | 82 | 15 | 48 | 24 |
FINANCIAL INSTRUMENTS AND NON96
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Schedule of Information About Assets and Liabilities Not Carried at Fair Value (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Liabilities | ||
Borrowings (debt assumed) | $ 136,392 | $ 136,210 |
Reduction to fair value of borrowings had interest rate and currency derivatives been excluded | 2,604 | 2,397 |
GE | Intercompany Payable To GE | ||
Liabilities | ||
Accrued interest on borrowings (debt assumed) | 575 | 803 |
GE Capital | ||
Liabilities | ||
Accrued interest on borrowings (debt assumed) | 230 | 115 |
GE Capital | Intercompany Payable To GE | ||
Liabilities | ||
Borrowings | 42,593 | 58,780 |
Accrued interest on borrowings (debt assumed) | 764 | 775 |
Carrying amount (net) | GE | ||
Assets | ||
Investments and notes receivable | 1,337 | 1,526 |
Liabilities | ||
Borrowings | 33,982 | 19,184 |
Borrowings (debt assumed) | 49,864 | 60,109 |
Carrying amount (net) | GE Capital | ||
Assets | ||
Loans | 19,994 | 21,060 |
Other commercial mortgages | 1,490 | 1,410 |
Loans held for sale | 1,063 | 473 |
Other financial instruments | 115 | 121 |
Liabilities | ||
Borrowings | 54,945 | 58,523 |
Investment contracts | 2,606 | 2,813 |
Estimated fair value | GE | ||
Assets | ||
Investments and notes receivable | 1,404 | 1,595 |
Liabilities | ||
Borrowings | 35,180 | 19,923 |
Borrowings (debt assumed) | 56,894 | 66,998 |
Estimated fair value | GE Capital | ||
Assets | ||
Loans | 20,069 | 20,830 |
Other commercial mortgages | 1,576 | 1,472 |
Loans held for sale | 1,063 | 473 |
Other financial instruments | 161 | 150 |
Liabilities | ||
Borrowings | 59,327 | 62,024 |
Investment contracts | $ 3,057 | $ 3,277 |
FINANCIAL INSTRUMENTS AND NON97
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Schedule of Notional Amounts of Loan Commitments (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Ordinary course of business lending commitments | $ 1,729 | $ 687 |
Unused revolving credit lines | 232 | 238 |
Excluded investment commitments | $ 451 | $ 522 |
FINANCIAL INSTRUMENTS AND NON98
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Schedule of Non-Recurring Fair Value Amounts (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cost and equity method investments | $ 4,452 | $ 4,406 |
Non-recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivables | 0 | 0 |
Cost and equity method investments | 0 | 0 |
Long-lived assets | 277 | 17 |
Goodwill | 0 | 0 |
Total | 277 | 17 |
Non-recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financing receivables | 10 | 30 |
Cost and equity method investments | 60 | 103 |
Long-lived assets | 743 | 1,055 |
Goodwill | 191 | 0 |
Total | $ 1,004 | $ 1,189 |
FINANCIAL INSTRUMENTS AND NON99
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Schedule of Non-Recurring Fair Value Adjustments (Details) - Non-recurring - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value adjustments to assets | $ (1,676) | $ (24) | $ (1,748) | $ (270) |
Financing receivables | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value adjustments to assets | (1) | 0 | (1) | (14) |
Cost and equity method investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value adjustments to assets | (58) | (2) | (89) | (95) |
Long-lived assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value adjustments to assets | (671) | (21) | (712) | (161) |
Goodwill | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value adjustments to assets | $ (947) | $ 0 | $ (947) | $ 0 |
FINANCIAL INSTRUMENTS AND NO100
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Schedule of Level 3 Measurements - Significant Unobservable Inputs (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Level 3 | ||
Fair Value, Assets Measured on Non-Recurring Basis, Unobservable Input Reconciliation [Table] [Line Items] | ||
Cost and equity method investments | $ 4,452 | $ 4,406 |
Lower limit | ||
Fair Value, Assets Measured on Non-Recurring Basis, Unobservable Input Reconciliation [Table] [Line Items] | ||
Discount rate | 10.00% | |
Upper limit | ||
Fair Value, Assets Measured on Non-Recurring Basis, Unobservable Input Reconciliation [Table] [Line Items] | ||
Discount rate | 18.00% | |
Non-recurring | Level 3 | ||
Fair Value, Assets Measured on Non-Recurring Basis, Unobservable Input Reconciliation [Table] [Line Items] | ||
Cost and equity method investments | $ 60 | 103 |
Long-lived assets | 743 | 1,055 |
Financing receivables | 10 | 30 |
Income approach | Non-recurring | Cost and equity method investments | Level 3 | ||
Fair Value, Assets Measured on Non-Recurring Basis, Unobservable Input Reconciliation [Table] [Line Items] | ||
Cost and equity method investments | $ 51 | $ 94 |
Income approach | Non-recurring | Cost and equity method investments | Lower limit | Level 3 | ||
Fair Value, Assets Measured on Non-Recurring Basis, Unobservable Input Reconciliation [Table] [Line Items] | ||
Discount rate | 9.00% | 9.00% |
Income approach | Non-recurring | Cost and equity method investments | Upper limit | Level 3 | ||
Fair Value, Assets Measured on Non-Recurring Basis, Unobservable Input Reconciliation [Table] [Line Items] | ||
Discount rate | 40.00% | 30.00% |
Income approach | Non-recurring | Cost and equity method investments | Weighted-average | Level 3 | ||
Fair Value, Assets Measured on Non-Recurring Basis, Unobservable Input Reconciliation [Table] [Line Items] | ||
Discount rate | 13.90% | 11.80% |
Income approach | Non-recurring | Long-lived assets | Level 3 | ||
Fair Value, Assets Measured on Non-Recurring Basis, Unobservable Input Reconciliation [Table] [Line Items] | ||
Long-lived assets | $ 508 | $ 683 |
Income approach | Non-recurring | Long-lived assets | Lower limit | Level 3 | ||
Fair Value, Assets Measured on Non-Recurring Basis, Unobservable Input Reconciliation [Table] [Line Items] | ||
Discount rate | 2.70% | 2.50% |
Income approach | Non-recurring | Long-lived assets | Upper limit | Level 3 | ||
Fair Value, Assets Measured on Non-Recurring Basis, Unobservable Input Reconciliation [Table] [Line Items] | ||
Discount rate | 17.00% | 20.00% |
Income approach | Non-recurring | Long-lived assets | Weighted-average | Level 3 | ||
Fair Value, Assets Measured on Non-Recurring Basis, Unobservable Input Reconciliation [Table] [Line Items] | ||
Discount rate | 7.20% | 10.40% |
Income approach | Non-recurring | Financing receivables, net | Level 3 | ||
Fair Value, Assets Measured on Non-Recurring Basis, Unobservable Input Reconciliation [Table] [Line Items] | ||
Financing receivables | $ 30 | |
Income approach | Non-recurring | Financing receivables, net | Lower limit | Level 3 | ||
Fair Value, Assets Measured on Non-Recurring Basis, Unobservable Input Reconciliation [Table] [Line Items] | ||
Discount rate | 2.50% | |
Income approach | Non-recurring | Financing receivables, net | Upper limit | Level 3 | ||
Fair Value, Assets Measured on Non-Recurring Basis, Unobservable Input Reconciliation [Table] [Line Items] | ||
Discount rate | 30.00% | |
Income approach | Non-recurring | Financing receivables, net | Weighted-average | Level 3 | ||
Fair Value, Assets Measured on Non-Recurring Basis, Unobservable Input Reconciliation [Table] [Line Items] | ||
Discount rate | 20.30% |
FINANCIAL INSTRUMENTS AND NO101
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Outstanding notional amount | $ 185,000 | |
Level 3 | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Non-recurring measurements | $ 252 | $ 379 |
FINANCIAL INSTRUMENTS AND NO102
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Schedule of Financial Statement Effects - Cash Flow Hedges (Details) - Cash Flow Hedges - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Balance sheet changes | ||||
Fair value of derivatives increase (decrease) | $ 225 | $ 2 | $ 281 | $ (43) |
Shareowners' equity (increase) decrease | (225) | (2) | (281) | 43 |
Earnings (loss) related to ineffectiveness | 0 | 0 | 0 | 0 |
Earnings (loss) effect of derivatives | $ 104 | $ (57) | $ 167 | $ (128) |
FINANCIAL INSTRUMENTS AND NO103
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Schedule of Financial Statement Effects - Fair Value Hedges (Details) - Fair Value Hedges - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Fair value of derivatives increase (decrease) | $ (148) | $ (116) | $ (430) | $ 2,494 |
Adjustment to carrying amount of hedged debt (increase) decrease | 103 | 37 | 267 | (2,651) |
Earnings (loss) related to hedge ineffectiveness | $ (45) | $ (79) | $ (162) | $ (156) |
FINANCIAL INSTRUMENTS AND NO104
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Schedule of Financial Statement Effects - Net Investment Hedges (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effect on earnings | $ (298,000,000) | $ (355,000,000) | $ (717,000,000) | $ (715,000,000) |
Net Investment Hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Fair value of derivatives increase (decrease) | (111,000,000) | 107,000,000 | (302,000,000) | 154,000,000 |
Fair value of non-derivative instruments (increase) decrease | (905,000,000) | 475,000,000 | (1,764,000,000) | 425,000,000 |
Shareowners' equity (increase) decrease | 1,020,000,000 | (552,000,000) | 2,082,000,000 | (513,000,000) |
Effect on earnings | 4,000,000 | 30,000,000 | 17,000,000 | 67,000,000 |
Earnings (loss) related to reclassification upon sale or liquidation | 18,000,000 | 47,000,000 | 78,000,000 | (1,025,000,000) |
Discontinued operations | Net Investment Hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Earnings (loss) related to reclassification upon sale or liquidation | $ 0 | $ 47,000,000 | $ 59,000,000 | $ (1,026,000,000) |
FINANCIAL INSTRUMENTS AND NO105
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Schedule of Financial Statement Effects - Economic Hedges (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Change in fair value of economic hedge increase (decrease) | $ 663 | $ (686) | $ 1,304 | $ (808) |
Change in carrying amount of item being hedged increase (decrease) | (920) | 380 | (1,876) | 182 |
Earnings (loss) effect of economic hedges | $ (257) | $ (306) | $ (572) | $ (626) |
FINANCIAL INSTRUMENTS AND NO106
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Schedule of Carrying Amounts Related to Derivatives (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative assets | $ 4,601 | $ 5,467 |
Derivative liabilities | (2,453) | (4,883) |
Accrued interest | 490 | 792 |
Cash collateral & credit valuation adjustment | (1,816) | (672) |
Net Derivatives | 822 | 703 |
Securities held as collateral | (437) | (442) |
Net amount | $ 385 | $ 262 |
FINANCIAL INSTRUMENTS AND NO107
FINANCIAL INSTRUMENTS AND NON-RECURRING FAIR VALUE MEASUREMENTS - Schedule of Effects of Derivatives on Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effect on earnings | $ (298) | $ (355) | $ (717) | $ (715) |
Cash flow hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effect on hedging instrument | 225 | 2 | 281 | (43) |
Effect on underlying | (225) | (2) | (281) | 43 |
Effect on earnings | 0 | 0 | 0 | 0 |
Fair value hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effect on hedging instrument | (148) | (116) | (430) | 2,494 |
Effect on underlying | 103 | 37 | 267 | (2,651) |
Effect on earnings | (45) | (79) | (162) | (156) |
Net investment hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effect on hedging instrument | (1,016) | 582 | (2,065) | 580 |
Effect on underlying | 1,020 | (552) | 2,082 | (513) |
Effect on earnings | 4 | 30 | 17 | 67 |
Economic hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effect on hedging instrument | 663 | (686) | 1,304 | (808) |
Effect on underlying | (920) | 380 | (1,876) | 182 |
Effect on earnings | $ (257) | $ (306) | $ (572) | $ (626) |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) | Nov. 02, 2015joint_venture | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)joint_venture | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Variable Interest Entities [Abstract] | ||||||
Number of joint ventures formed | joint_venture | 3 | 4 | ||||
Variable Interest Entity [Line Items] | ||||||
Combined assets | $ 6,018,000,000 | $ 6,018,000,000 | ||||
Total revenues from consolidated VIEs | 33,472,000,000 | $ 29,266,000,000 | $ 90,691,000,000 | $ 90,604,000,000 | ||
BHGE LLC | ||||||
Variable Interest Entity [Line Items] | ||||||
Economic interest in the partnership (as a percent) | 62.50% | |||||
Alstom acquisition | ||||||
Variable Interest Entity [Line Items] | ||||||
Combined assets | 16,282,000,000 | $ 16,282,000,000 | $ 14,460,000,000 | |||
Combined liabilities | 11,414,000,000 | 11,414,000,000 | 9,922,000,000 | |||
Redeemable non-controlling interest | 3,106,000,000 | 2,709,000,000 | ||||
Consolidated VIEs | ||||||
Variable Interest Entity [Line Items] | ||||||
Combined assets | 6,199,000,000 | 6,199,000,000 | 6,105,000,000 | |||
Combined liabilities | 4,868,000,000 | 4,868,000,000 | 4,553,000,000 | |||
Total revenues from consolidated VIEs | 293,000,000 | 211,000,000 | 801,000,000 | 881,000,000 | ||
Cost of goods and services | 78,000,000 | $ 112,000,000 | 256,000,000 | $ 610,000,000 | ||
Third-party investors | ||||||
Variable Interest Entity [Line Items] | ||||||
Commingled cash owed to third-party investors | 1,216,000,000 | 1,216,000,000 | 1,117,000,000 | |||
Commingled cash owed by third-party investors | 0 | 0 | 5,000,000 | |||
Unconsolidated VIEs | ||||||
Variable Interest Entity [Line Items] | ||||||
Investments in unconsolidated VIEs | $ 6,382,000,000 | $ 6,382,000,000 | $ 6,346,000,000 |
VARIABLE INTEREST ENTITIES - Sc
VARIABLE INTEREST ENTITIES - Schedule of Assets and Liabilities of Consolidated VIEs (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2017USD ($)funding_vehicle | Dec. 31, 2016USD ($) | |
Variable Interest Entity [Line Items] | ||
Assets | $ 6,018 | |
Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 6,199 | $ 6,105 |
Liabilities | 4,868 | 4,553 |
GE | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 590 | 549 |
Liabilities | $ 482 | 458 |
GE Capital | ||
Variable Interest Entity [Line Items] | ||
Number of funding vehicles established | funding_vehicle | 2 | |
Number of funding vehicles partially funded by third-party debt | funding_vehicle | 1 | |
GE Capital | Customer Notes receivables | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 1,830 | 1,792 |
Liabilities | 1,746 | 1,779 |
GE Capital | Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 3,779 | 3,764 |
Liabilities | 2,640 | 2,316 |
Financing receivables, net | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 919 | 1,035 |
Financing receivables, net | GE | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
Financing receivables, net | GE Capital | Customer Notes receivables | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
Financing receivables, net | GE Capital | Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 919 | 1,035 |
Current receivables | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 606 | 727 |
Current receivables | GE | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 49 | 57 |
Current receivables | GE Capital | Customer Notes receivables | ||
Variable Interest Entity [Line Items] | ||
Assets | 557 | 670 |
Current receivables | GE Capital | Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
Investment securities | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 965 | 982 |
Investment securities | GE | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
Investment securities | GE Capital | Customer Notes receivables | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
Investment securities | GE Capital | Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 965 | 982 |
Other assets | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 3,709 | 3,361 |
Other assets | GE | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 541 | 492 |
Other assets | GE Capital | Customer Notes receivables | ||
Variable Interest Entity [Line Items] | ||
Assets | 1,273 | 1,122 |
Other assets | GE Capital | Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 1,895 | 1,747 |
Borrowings | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 708 | |
Borrowings | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 1,149 | 819 |
Borrowings | GE | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 71 | 1 |
Borrowings | GE Capital | Customer Notes receivables | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 0 | 0 |
Borrowings | GE Capital | Other | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 1,078 | 818 |
Non-recourse borrowings | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 709 | 417 |
Non-recourse borrowings | GE | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 0 | 0 |
Non-recourse borrowings | GE Capital | Customer Notes receivables | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 693 | 401 |
Non-recourse borrowings | GE Capital | Other | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 16 | 16 |
Other liabilities | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 3,010 | 3,317 |
Other liabilities | GE | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 411 | 457 |
Other liabilities | GE Capital | Customer Notes receivables | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 1,053 | 1,378 |
Other liabilities | GE Capital | Other | ||
Variable Interest Entity [Line Items] | ||
Liabilities | $ 1,546 | $ 1,482 |
COMMITMENTS, GUARANTEES, PRO110
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - COMMITMENTS (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
GECAS | New aircraft | |
Long-term Purchase Commitment [Line Items] | |
List prices of multiple-year orders | $ 38,669 |
GECAS | Used aircraft | |
Long-term Purchase Commitment [Line Items] | |
List prices of multiple-year orders | 2,077 |
Aviation | |
Long-term Purchase Commitment [Line Items] | |
Commitment to provide financing assistance | $ 1,875 |
COMMITMENTS, GUARANTEES, PRO111
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - GUARANTEES (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Guarantor Obligations [Line Items] | ||
Liability for indemnification agreements | $ 22,191 | $ 22,912 |
Credit support | ||
Guarantor Obligations [Line Items] | ||
Commitments | 1,855 | |
Liability for indemnification agreements RVG | 47 | |
Indemnification agreements | ||
Guarantor Obligations [Line Items] | ||
Commitments | 1,688 | |
Liability for indemnification agreements RVG | 7 | |
Required funding under residual value guarantees | 190 | |
Liability for indemnification agreements | 277 | |
Indemnification agreements - discontinued operations | ||
Guarantor Obligations [Line Items] | ||
Commitments | 2,714 | |
Liability for indemnification agreements | $ 320 |
COMMITMENTS, GUARANTEES, PRO112
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - Schedule of Product Warranties (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Movement in Standard Product Warranty Accrual | ||
Balance at January 1 | $ 1,920 | $ 1,723 |
Current-year provisions | 615 | 539 |
Expenditures | (601) | (539) |
Other changes | 255 | 166 |
Balance as of September 30 | $ 2,189 | $ 1,889 |
COMMITMENTS, GUARANTEES, PRO113
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - OTHER LOSS CONTINGENCIES (Narrative) (Details) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Dec. 31, 2014USD ($) | Jan. 31, 2007EUR (€) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)significant_caselawsuitsecuritization | Sep. 30, 2016USD ($) | Oct. 26, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Nov. 02, 2015USD ($) | |
Loss Contingencies [Line Items] | ||||||||||||
Claims reflecting purchase price or unpaid principal balances of the loans at the time of purchase | $ 6,454 | $ 6,454 | ||||||||||
Period prior to notifying WMC when claim would be disallowed | 6 years | |||||||||||
Number of significant cases involving anti-competitive activities and improper payments | significant_case | 2 | |||||||||||
Fine for participating in gas insulated switchgear cartel (in euros) | € | € 65 | |||||||||||
Reduced fine (in euros) | € | € 59 | |||||||||||
Criminal penalty paid | $ 772 | |||||||||||
Reserve established for legal and compliance matters | $ 858 | |||||||||||
Disposed of by sale | WMC | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Active claims for alleged breaches of representations and warranties on mortgage loans | 1,019 | $ 1,019 | $ 1,060 | |||||||||
Additional claims asserted against WMC in litigation without making a prior claim | 5,435 | $ 5,435 | 5,456 | |||||||||
Number of securitizations related to lawsuits | securitization | 11 | |||||||||||
Reserves related to repurchase claims | 647 | $ 665 | $ 647 | $ 665 | $ 636 | $ 626 | $ 860 | $ 875 | ||||
Net increase to reserves | 11 | $ 0 | $ 21 | $ 84 | ||||||||
Number of lawsuits arising from alleged breaches of representations and warranties | lawsuit | 10 | |||||||||||
Disposed of by sale | WMC | Lower limit | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimate of possible loss | 0 | $ 0 | ||||||||||
Disposed of by sale | WMC | Maximum | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimate of possible loss | $ 500 | $ 500 | ||||||||||
Disposed of by sale | WMC | Lawsuits 1, 2, 3, 4, & 5 | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of lawsuits arising from alleged breaches of representations and warranties | lawsuit | 5 | |||||||||||
Disposed of by sale | WMC | Lawsuit 6 | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of lawsuits arising from alleged breaches of representations and warranties | lawsuit | 1 | |||||||||||
Disposed of by sale | WMC | Lawsuit 7 | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of securitizations related to lawsuits | securitization | 2 | |||||||||||
Number of lawsuits arising from alleged breaches of representations and warranties | lawsuit | 1 | |||||||||||
Disposed of by sale | WMC | Lawsuits 8, 9, & 10 | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of lawsuits arising from alleged breaches of representations and warranties | lawsuit | 3 | |||||||||||
Settled and subsequently dismissed | Disposed of by sale | WMC | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of securitizations related to lawsuits | securitization | 5 | |||||||||||
Pending outcome of ongoing settlement negotiations | Disposed of by sale | WMC | Lawsuits 8 & 9 | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of lawsuits arising from alleged breaches of representations and warranties | lawsuit | 2 | |||||||||||
Subsequent Event | Disposed of by sale | WMC | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Active claims for alleged breaches of representations and warranties on mortgage loans | $ 462 | |||||||||||
Additional claims asserted against WMC in litigation without making a prior claim | $ 3,198 |
COMMITMENTS, GUARANTEES, PRO114
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - Rollforward of the Reserve (Details) - Disposed of by sale - WMC - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Loss Contingency Accrual | ||||
Balance, beginning of period | $ 636 | $ 860 | $ 626 | $ 875 |
Provision | 11 | 0 | 21 | 84 |
Claim resolutions / rescissions | 0 | (195) | 0 | (294) |
Balance, end of period | $ 647 | $ 665 | $ 647 | $ 665 |
INTERCOMPANY TRANSACTIONS (Deta
INTERCOMPANY TRANSACTIONS (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities-continuing operations | $ 4,008 | $ 3,846 |
Total cash from (used for) investing activities-continuing operations | 4,692 | 53,559 |
Total cash from (used for) financing activities-continuing operations | (18,228) | (75,188) |
GE and GE Capital totals | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities-continuing operations | 6,103 | 20,245 |
Total cash from (used for) investing activities-continuing operations | 752 | 47,548 |
Total cash from (used for) financing activities-continuing operations | (16,383) | (85,578) |
GE and GE Capital totals | GE Capital | GE current receivables sold to GE Capital | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities-continuing operations | 1,402 | 675 |
Total cash from (used for) investing activities-continuing operations | (1,653) | (622) |
Total cash from (used for) financing activities-continuing operations | 251 | (54) |
GE and GE Capital totals | GE Capital | GE Capital dividends to GE | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities-continuing operations | (4,016) | (16,050) |
Total cash from (used for) financing activities-continuing operations | 4,016 | 16,050 |
GE and GE Capital totals | GE Capital | GE debt effected through GE Capital | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) investing activities-continuing operations | 5,942 | 5,002 |
Total cash from (used for) financing activities-continuing operations | (5,942) | (5,002) |
Other reclassifications and eliminations | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities-continuing operations | 519 | (1,024) |
Total cash from (used for) investing activities-continuing operations | (349) | 1,631 |
Total cash from (used for) financing activities-continuing operations | $ (170) | $ (604) |
GUARANTOR FINANCIAL INFORMAT116
GUARANTOR FINANCIAL INFORMATION - Condensed Consolidating Statement of Earnings (Loss) and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues and other income | ||||
Sales of goods and services | $ 29,428 | $ 26,814 | $ 81,895 | $ 80,156 |
Other income (loss) | 2,146 | 227 | 2,611 | 3,385 |
Equity in earnings (loss) of affiliates | 0 | 0 | 0 | 0 |
GE Capital revenues from services | 1,898 | 2,224 | 6,184 | 7,063 |
Total revenues and other income (loss) | 33,472 | 29,266 | 90,691 | 90,604 |
Costs and expenses | ||||
Interest and other financial charges | 1,232 | 961 | 3,545 | 4,023 |
Other costs and expenses | 30,774 | 26,230 | 83,334 | 80,445 |
Total costs and expenses | 32,006 | 27,191 | 86,879 | 84,467 |
Earnings (loss) from continuing operations before income taxes | 1,466 | 2,074 | 3,812 | 6,137 |
Benefit (provision) for income taxes | 334 | (18) | 303 | (302) |
Earnings (loss) from continuing operations | 1,800 | 2,056 | 4,115 | 5,835 |
Earnings (loss) from discontinued operations, net of taxes | (106) | (105) | (490) | (954) |
Net earnings (loss) | 1,694 | 1,951 | 3,624 | 4,881 |
Less net earnings (loss) attributable to noncontrolling interests | (142) | (76) | (231) | (283) |
Net earnings (loss) attributable to the Company | 1,836 | 2,027 | 3,856 | 5,164 |
Other comprehensive income (loss) | 931 | 477 | 4,075 | 2,107 |
Comprehensive income (loss) attributable to the Company | 2,766 | 2,504 | 7,931 | 7,271 |
Reportable Legal Entities | Parent Company Guarantor | ||||
Revenues and other income | ||||
Sales of goods and services | 8,025 | 8,194 | 24,897 | 28,870 |
Other income (loss) | (1,152) | 883 | (1,041) | 845 |
Equity in earnings (loss) of affiliates | 5,672 | 1,788 | 10,444 | 7,923 |
GE Capital revenues from services | 0 | 0 | 0 | 0 |
Total revenues and other income (loss) | 12,545 | 10,865 | 34,301 | 37,638 |
Costs and expenses | ||||
Interest and other financial charges | 1,671 | 1,166 | 3,348 | 2,828 |
Other costs and expenses | 9,382 | 8,498 | 27,567 | 30,555 |
Total costs and expenses | 11,053 | 9,664 | 30,916 | 33,383 |
Earnings (loss) from continuing operations before income taxes | 1,491 | 1,201 | 3,385 | 4,255 |
Benefit (provision) for income taxes | 457 | 932 | 971 | 1,862 |
Earnings (loss) from continuing operations | 1,948 | 2,132 | 4,356 | 6,118 |
Earnings (loss) from discontinued operations, net of taxes | (113) | (105) | (501) | (954) |
Net earnings (loss) | 1,836 | 2,027 | 3,856 | 5,164 |
Less net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to the Company | 1,836 | 2,027 | 3,856 | 5,164 |
Other comprehensive income (loss) | 931 | 477 | 4,075 | 2,107 |
Comprehensive income (loss) attributable to the Company | 2,766 | 2,504 | 7,931 | 7,271 |
Reportable Legal Entities | Subsidiary Issuer | ||||
Revenues and other income | ||||
Sales of goods and services | 0 | 0 | 0 | 0 |
Other income (loss) | 0 | 0 | 0 | 0 |
Equity in earnings (loss) of affiliates | 0 | 0 | 0 | 0 |
GE Capital revenues from services | 176 | 166 | 505 | 762 |
Total revenues and other income (loss) | 176 | 166 | 505 | 762 |
Costs and expenses | ||||
Interest and other financial charges | 168 | 138 | 477 | 685 |
Other costs and expenses | 0 | 0 | 0 | 0 |
Total costs and expenses | 168 | 138 | 478 | 686 |
Earnings (loss) from continuing operations before income taxes | 7 | 28 | 27 | 76 |
Benefit (provision) for income taxes | (1) | (3) | (3) | (10) |
Earnings (loss) from continuing operations | 6 | 24 | 24 | 67 |
Earnings (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | 0 |
Net earnings (loss) | 6 | 24 | 24 | 67 |
Less net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to the Company | 6 | 24 | 24 | 67 |
Other comprehensive income (loss) | 0 | 0 | 0 | (12) |
Comprehensive income (loss) attributable to the Company | 6 | 24 | 24 | 55 |
Reportable Legal Entities | Subsidiary Guarantor | ||||
Revenues and other income | ||||
Sales of goods and services | 0 | 0 | 0 | 0 |
Other income (loss) | 0 | 0 | 0 | 0 |
Equity in earnings (loss) of affiliates | 1,019 | 428 | 1,711 | 1,093 |
GE Capital revenues from services | 209 | 243 | 583 | 1,262 |
Total revenues and other income (loss) | 1,228 | 671 | 2,294 | 2,355 |
Costs and expenses | ||||
Interest and other financial charges | 542 | 525 | 1,485 | 2,133 |
Other costs and expenses | 0 | 16 | 22 | 71 |
Total costs and expenses | 542 | 541 | 1,507 | 2,204 |
Earnings (loss) from continuing operations before income taxes | 686 | 130 | 787 | 150 |
Benefit (provision) for income taxes | 0 | (11) | 115 | (58) |
Earnings (loss) from continuing operations | 686 | 119 | 902 | 93 |
Earnings (loss) from discontinued operations, net of taxes | (562) | (552) | (284) | (1,547) |
Net earnings (loss) | 125 | (433) | 618 | (1,455) |
Less net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to the Company | 125 | (433) | 618 | (1,455) |
Other comprehensive income (loss) | (187) | 51 | 463 | 114 |
Comprehensive income (loss) attributable to the Company | (62) | (382) | 1,081 | (1,341) |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||
Revenues and other income | ||||
Sales of goods and services | 40,741 | 36,082 | 114,446 | 108,043 |
Other income (loss) | 25,159 | 35,578 | 57,784 | 55,062 |
Equity in earnings (loss) of affiliates | 21,123 | 29,804 | 71,787 | 58,732 |
GE Capital revenues from services | 2,785 | 2,838 | 7,644 | 9,182 |
Total revenues and other income (loss) | 89,808 | 104,302 | 251,661 | 231,019 |
Costs and expenses | ||||
Interest and other financial charges | 1,279 | 856 | 3,582 | 4,027 |
Other costs and expenses | 40,253 | 36,101 | 113,764 | 110,725 |
Total costs and expenses | 41,533 | 36,957 | 117,346 | 114,752 |
Earnings (loss) from continuing operations before income taxes | 48,275 | 67,345 | 134,315 | 116,267 |
Benefit (provision) for income taxes | (59) | (951) | (758) | (1,908) |
Earnings (loss) from continuing operations | 48,216 | 66,395 | 133,557 | 114,359 |
Earnings (loss) from discontinued operations, net of taxes | 4 | 224 | 7 | 398 |
Net earnings (loss) | 48,220 | 66,619 | 133,564 | 114,757 |
Less net earnings (loss) attributable to noncontrolling interests | (21) | (51) | (53) | (143) |
Net earnings (loss) attributable to the Company | 48,241 | 66,670 | 133,617 | 114,900 |
Other comprehensive income (loss) | 19,935 | (711) | (7,059) | 136 |
Comprehensive income (loss) attributable to the Company | 68,176 | 65,959 | 126,559 | 115,036 |
Consolidating Adjustments | ||||
Revenues and other income | ||||
Sales of goods and services | (19,338) | (17,462) | (57,448) | (56,757) |
Other income (loss) | (21,861) | (36,234) | (54,132) | (52,522) |
Equity in earnings (loss) of affiliates | (27,813) | (32,019) | (83,942) | (67,747) |
GE Capital revenues from services | (1,272) | (1,023) | (2,548) | (4,144) |
Total revenues and other income (loss) | (70,284) | (86,738) | (198,070) | (181,170) |
Costs and expenses | ||||
Interest and other financial charges | (2,428) | (1,724) | (5,348) | (5,651) |
Other costs and expenses | (18,861) | (18,385) | (58,020) | (60,906) |
Total costs and expenses | (21,290) | (20,109) | (63,368) | (66,558) |
Earnings (loss) from continuing operations before income taxes | (48,994) | (66,630) | (134,702) | (114,612) |
Benefit (provision) for income taxes | (63) | 16 | (22) | (189) |
Earnings (loss) from continuing operations | (49,058) | (66,614) | (134,724) | (114,801) |
Earnings (loss) from discontinued operations, net of taxes | 565 | 328 | 287 | 1,149 |
Net earnings (loss) | (48,493) | (66,286) | (134,437) | (113,652) |
Less net earnings (loss) attributable to noncontrolling interests | (121) | (25) | (178) | (140) |
Net earnings (loss) attributable to the Company | (48,372) | (66,262) | (134,259) | (113,512) |
Other comprehensive income (loss) | (19,749) | 661 | 6,596 | (238) |
Comprehensive income (loss) attributable to the Company | $ (68,121) | $ (65,601) | $ (127,663) | $ (113,750) |
GUARANTOR FINANCIAL INFORMAT117
GUARANTOR FINANCIAL INFORMATION - Condensed Consolidating Statement of Financial Position (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |||
Assets | |||||||||
Cash and equivalents | $ 39,854 | $ 48,129 | |||||||
Investment securities | 38,696 | 44,313 | |||||||
Receivables - net | 43,362 | 42,263 | |||||||
Inventories | 25,848 | 22,354 | |||||||
Property, plant and equipment - net | 54,101 | 50,518 | |||||||
Investment in subsidiaries | 0 | 0 | |||||||
Goodwill and intangible assets | 108,503 | 86,875 | |||||||
All other assets | 60,882 | 55,917 | |||||||
Assets of discontinued operations | 6,791 | 14,815 | |||||||
Total assets | [1] | 378,038 | 365,183 | ||||||
Liabilities and equity | |||||||||
Short-term borrowings | 28,127 | 30,714 | |||||||
Accounts payable | 14,907 | 14,435 | |||||||
Other current liabilities | 36,483 | 36,431 | |||||||
Long-term and non-recourse borrowings | 108,265 | 105,496 | |||||||
All other liabilities | 91,772 | 93,434 | |||||||
Liabilities of discontinued operations | 990 | 4,158 | |||||||
Total Liabilities | [1] | 280,544 | 284,668 | ||||||
Redeemable noncontrolling interests | 3,441 | $ 3,193 | 3,025 | $ 3,051 | $ 3,070 | $ 2,972 | |||
GE shareowners' equity | 76,105 | 75,828 | 81,882 | 98,274 | |||||
Noncontrolling interests | 17,947 | [2] | $ 1,634 | 1,663 | [2] | 1,663 | $ 1,693 | $ 1,864 | |
Total equity (Note 14) | 94,052 | 77,491 | $ 83,544 | ||||||
Total liabilities, redeemable noncontrolling interests and equity | 378,038 | 365,183 | |||||||
Subsidiary Guarantor | Subsidiaries of the Subsidiary Guarantor | |||||||||
Liabilities and equity | |||||||||
Cash and cash equivalent balances within subsidiaries | 19,301 | 28,516 | |||||||
Net assets of discontinued operations | 3,776 | 6,012 | |||||||
Reportable Legal Entities | Parent Company Guarantor | |||||||||
Assets | |||||||||
Cash and equivalents | 737 | 2,558 | |||||||
Investment securities | 1 | 1 | |||||||
Receivables - net | 51,669 | 63,620 | |||||||
Inventories | 5,264 | 4,654 | |||||||
Property, plant and equipment - net | 5,645 | 5,768 | |||||||
Investment in subsidiaries | 297,324 | 272,685 | |||||||
Goodwill and intangible assets | 6,812 | 8,128 | |||||||
All other assets | 27,636 | 14,692 | |||||||
Assets of discontinued operations | 0 | 0 | |||||||
Total assets | 395,089 | 372,107 | |||||||
Liabilities and equity | |||||||||
Short-term borrowings | 183,427 | 167,089 | |||||||
Accounts payable | 9,672 | 5,412 | |||||||
Other current liabilities | 11,479 | 11,072 | |||||||
Long-term and non-recourse borrowings | 72,193 | 68,983 | |||||||
All other liabilities | 42,212 | 43,722 | |||||||
Liabilities of discontinued operations | 0 | 0 | |||||||
Total Liabilities | 318,984 | 296,279 | |||||||
Redeemable noncontrolling interests | 0 | 0 | |||||||
GE shareowners' equity | 76,105 | 75,828 | |||||||
Noncontrolling interests | 0 | 0 | |||||||
Total equity (Note 14) | 76,105 | 75,828 | |||||||
Total liabilities, redeemable noncontrolling interests and equity | 395,089 | 372,107 | |||||||
Reportable Legal Entities | Subsidiary Issuer | |||||||||
Assets | |||||||||
Cash and equivalents | 0 | 0 | |||||||
Investment securities | 0 | 0 | |||||||
Receivables - net | 17,452 | 17,157 | |||||||
Inventories | 0 | 0 | |||||||
Property, plant and equipment - net | 0 | 0 | |||||||
Investment in subsidiaries | 0 | 0 | |||||||
Goodwill and intangible assets | 0 | 0 | |||||||
All other assets | 44 | 44 | |||||||
Assets of discontinued operations | 0 | 0 | |||||||
Total assets | 17,497 | 17,202 | |||||||
Liabilities and equity | |||||||||
Short-term borrowings | 0 | 1 | |||||||
Accounts payable | 0 | 0 | |||||||
Other current liabilities | 33 | 33 | |||||||
Long-term and non-recourse borrowings | 16,724 | 16,486 | |||||||
All other liabilities | 544 | 511 | |||||||
Liabilities of discontinued operations | 0 | 0 | |||||||
Total Liabilities | 17,302 | 17,030 | |||||||
Redeemable noncontrolling interests | 0 | 0 | |||||||
GE shareowners' equity | 195 | 171 | |||||||
Noncontrolling interests | 0 | 0 | |||||||
Total equity (Note 14) | 195 | 171 | |||||||
Total liabilities, redeemable noncontrolling interests and equity | 17,497 | 17,202 | |||||||
Reportable Legal Entities | Subsidiary Guarantor | |||||||||
Assets | |||||||||
Cash and equivalents | 3 | 3 | |||||||
Investment securities | 0 | 0 | |||||||
Receivables - net | 31,245 | 30,470 | |||||||
Inventories | 0 | 0 | |||||||
Property, plant and equipment - net | 0 | 0 | |||||||
Investment in subsidiaries | 80,506 | 80,481 | |||||||
Goodwill and intangible assets | 0 | 0 | |||||||
All other assets | 387 | 39 | |||||||
Assets of discontinued operations | 0 | 0 | |||||||
Total assets | 112,142 | 110,992 | |||||||
Liabilities and equity | |||||||||
Short-term borrowings | 46,537 | 46,432 | |||||||
Accounts payable | 0 | 0 | |||||||
Other current liabilities | 3 | 117 | |||||||
Long-term and non-recourse borrowings | 34,810 | 34,389 | |||||||
All other liabilities | 137 | 481 | |||||||
Liabilities of discontinued operations | 0 | 0 | |||||||
Total Liabilities | 81,488 | 81,419 | |||||||
Redeemable noncontrolling interests | 0 | 0 | |||||||
GE shareowners' equity | 30,654 | 29,573 | |||||||
Noncontrolling interests | 0 | 0 | |||||||
Total equity (Note 14) | 30,654 | 29,573 | |||||||
Total liabilities, redeemable noncontrolling interests and equity | 112,142 | 110,992 | |||||||
Reportable Legal Entities | Non- Guarantor Subsidiaries | |||||||||
Assets | |||||||||
Cash and equivalents | 39,623 | 46,994 | |||||||
Investment securities | 40,298 | 47,394 | |||||||
Receivables - net | 87,077 | 79,401 | |||||||
Inventories | 24,695 | 21,076 | |||||||
Property, plant and equipment - net | 49,754 | 46,366 | |||||||
Investment in subsidiaries | 695,869 | 492,674 | |||||||
Goodwill and intangible assets | 84,760 | 42,074 | |||||||
All other assets | 214,163 | 201,276 | |||||||
Assets of discontinued operations | 0 | 0 | |||||||
Total assets | 1,236,239 | 977,255 | |||||||
Liabilities and equity | |||||||||
Short-term borrowings | 23,793 | 25,919 | |||||||
Accounts payable | 66,041 | 47,366 | |||||||
Other current liabilities | 24,418 | 25,095 | |||||||
Long-term and non-recourse borrowings | 53,517 | 68,912 | |||||||
All other liabilities | 55,881 | 58,376 | |||||||
Liabilities of discontinued operations | 0 | 0 | |||||||
Total Liabilities | 223,650 | 225,667 | |||||||
Redeemable noncontrolling interests | 2,713 | 2,223 | |||||||
GE shareowners' equity | 1,008,330 | 747,719 | |||||||
Noncontrolling interests | 1,545 | 1,647 | |||||||
Total equity (Note 14) | 1,009,876 | 749,366 | |||||||
Total liabilities, redeemable noncontrolling interests and equity | 1,236,239 | 977,255 | |||||||
Consolidating Adjustments | |||||||||
Assets | |||||||||
Cash and equivalents | (509) | (1,426) | |||||||
Investment securities | (1,603) | (3,082) | |||||||
Receivables - net | (144,082) | (148,385) | |||||||
Inventories | (4,112) | (3,377) | |||||||
Property, plant and equipment - net | (1,299) | (1,615) | |||||||
Investment in subsidiaries | (1,073,699) | (845,840) | |||||||
Goodwill and intangible assets | 16,932 | 36,673 | |||||||
All other assets | (181,348) | (160,134) | |||||||
Assets of discontinued operations | 6,791 | 14,815 | |||||||
Total assets | (1,382,929) | (1,112,372) | |||||||
Liabilities and equity | |||||||||
Short-term borrowings | (225,630) | (208,727) | |||||||
Accounts payable | (60,807) | (38,343) | |||||||
Other current liabilities | 550 | 114 | |||||||
Long-term and non-recourse borrowings | (68,979) | (83,273) | |||||||
All other liabilities | (7,003) | (9,656) | |||||||
Liabilities of discontinued operations | 990 | 4,158 | |||||||
Total Liabilities | (360,879) | (335,727) | |||||||
Redeemable noncontrolling interests | 727 | 802 | |||||||
GE shareowners' equity | (1,039,179) | (777,463) | |||||||
Noncontrolling interests | 16,402 | 16 | |||||||
Total equity (Note 14) | (1,022,777) | (777,447) | |||||||
Total liabilities, redeemable noncontrolling interests and equity | $ (1,382,929) | $ (1,112,372) | |||||||
[1] | Our consolidated assets at September 30, 2017 included total assets of $6,018 million of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs. These assets included current receivables and net financing receivables of $1,486 million and investment securities of $965 million within continuing operations and assets of discontinued operations of $285 million. Our consolidated liabilities at September 30, 2017 included liabilities of certain VIEs for which the VIE creditors do not have recourse to GE. These liabilities included non-recourse borrowings of consolidated securitization entities (CSEs) of $(708) million within continuing operations. See Note 17. | ||||||||
[2] | Included AOCI attributable to noncontrolling interests of $(144) million and $(278) million at September 30, 2017 and December 31, 2016, respectively. |
GUARANTOR FINANCIAL INFORMAT118
GUARANTOR FINANCIAL INFORMATION - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows – operating activities | ||
Cash from (used for) operating activities - continuing operations | $ 4,008 | $ 3,846 |
Cash from (used for) operating activities - discontinued operations | (490) | (5,719) |
Cash from (used for) operating activities | 3,518 | (1,873) |
Cash flows – investing activities | ||
Cash from (used for) investing activities – continuing operations | 4,692 | 53,559 |
Cash from (used for) investing activities – continuing operations | (2,349) | (12,056) |
Cash from (used for) investing activities | 2,343 | 41,503 |
Cash flows – financing activities | ||
Cash from (used for) financing activities – continuing operations | (18,228) | (75,188) |
Cash from (used for) financing activities – discontinued operations | 1,905 | 295 |
Cash from (used for) financing activities | (16,323) | (74,893) |
Effect of currency exchange rate changes on cash and equivalents | 1,253 | (169) |
Increase (decrease) in cash and equivalents | (9,208) | (35,432) |
Cash and equivalents at beginning of year | 49,558 | 90,878 |
Cash and equivalents at September 30 | 40,350 | 55,445 |
Less cash and equivalents of discontinued operations at September 30 | 496 | 2,915 |
Cash and equivalents of continuing operations at September 30 | 39,854 | 52,530 |
Reportable Legal Entities | ||
Cash flows – operating activities | ||
Cash from (used for) operating activities - continuing operations | 6,103 | 20,245 |
Cash flows – investing activities | ||
Cash from (used for) investing activities – continuing operations | 752 | 47,548 |
Cash flows – financing activities | ||
Cash from (used for) financing activities – continuing operations | (16,383) | (85,578) |
Reportable Legal Entities | Parent Company Guarantor | ||
Cash flows – operating activities | ||
Cash from (used for) operating activities - continuing operations | (25,937) | (14,847) |
Cash from (used for) operating activities - discontinued operations | (501) | (954) |
Cash from (used for) operating activities | (26,437) | (15,801) |
Cash flows – investing activities | ||
Cash from (used for) investing activities – continuing operations | (1,723) | 20,902 |
Cash from (used for) investing activities – continuing operations | 0 | 0 |
Cash from (used for) investing activities | (1,723) | 20,902 |
Cash flows – financing activities | ||
Cash from (used for) financing activities – continuing operations | 26,339 | (6,894) |
Cash from (used for) financing activities – discontinued operations | 0 | 0 |
Cash from (used for) financing activities | 26,339 | (6,894) |
Effect of currency exchange rate changes on cash and equivalents | 0 | 0 |
Increase (decrease) in cash and equivalents | (1,821) | (1,792) |
Cash and equivalents at beginning of year | 2,558 | 4,137 |
Cash and equivalents at September 30 | 737 | 2,344 |
Less cash and equivalents of discontinued operations at September 30 | 0 | 0 |
Cash and equivalents of continuing operations at September 30 | 737 | 2,344 |
Reportable Legal Entities | Subsidiary Issuer | ||
Cash flows – operating activities | ||
Cash from (used for) operating activities - continuing operations | 39 | 175 |
Cash from (used for) operating activities - discontinued operations | 0 | 0 |
Cash from (used for) operating activities | 39 | 175 |
Cash flows – investing activities | ||
Cash from (used for) investing activities – continuing operations | (39) | 16,080 |
Cash from (used for) investing activities – continuing operations | 0 | 0 |
Cash from (used for) investing activities | (39) | 16,080 |
Cash flows – financing activities | ||
Cash from (used for) financing activities – continuing operations | 0 | (16,255) |
Cash from (used for) financing activities – discontinued operations | 0 | 0 |
Cash from (used for) financing activities | 0 | (16,255) |
Effect of currency exchange rate changes on cash and equivalents | 0 | 0 |
Increase (decrease) in cash and equivalents | 0 | 0 |
Cash and equivalents at beginning of year | 0 | 0 |
Cash and equivalents at September 30 | 0 | 0 |
Less cash and equivalents of discontinued operations at September 30 | 0 | 0 |
Cash and equivalents of continuing operations at September 30 | 0 | 0 |
Reportable Legal Entities | Subsidiary Guarantor | ||
Cash flows – operating activities | ||
Cash from (used for) operating activities - continuing operations | (81) | (121) |
Cash from (used for) operating activities - discontinued operations | 0 | 0 |
Cash from (used for) operating activities | (81) | (121) |
Cash flows – investing activities | ||
Cash from (used for) investing activities – continuing operations | 345 | 36,317 |
Cash from (used for) investing activities – continuing operations | 0 | 0 |
Cash from (used for) investing activities | 345 | 36,317 |
Cash flows – financing activities | ||
Cash from (used for) financing activities – continuing operations | (265) | (36,194) |
Cash from (used for) financing activities – discontinued operations | 0 | 0 |
Cash from (used for) financing activities | (265) | (36,194) |
Effect of currency exchange rate changes on cash and equivalents | 0 | 0 |
Increase (decrease) in cash and equivalents | 0 | 3 |
Cash and equivalents at beginning of year | 3 | 0 |
Cash and equivalents at September 30 | 3 | 3 |
Less cash and equivalents of discontinued operations at September 30 | 0 | 0 |
Cash and equivalents of continuing operations at September 30 | 3 | 3 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||
Cash flows – operating activities | ||
Cash from (used for) operating activities - continuing operations | 193,403 | 83,404 |
Cash from (used for) operating activities - discontinued operations | 8 | (4,366) |
Cash from (used for) operating activities | 193,411 | 79,038 |
Cash flows – investing activities | ||
Cash from (used for) investing activities – continuing operations | (257,130) | 32,000 |
Cash from (used for) investing activities – continuing operations | (2,349) | (12,056) |
Cash from (used for) investing activities | (259,479) | 19,944 |
Cash flows – financing activities | ||
Cash from (used for) financing activities – continuing operations | 104,160 | (150,446) |
Cash from (used for) financing activities – discontinued operations | 1,905 | 295 |
Cash from (used for) financing activities | 106,065 | (150,151) |
Effect of currency exchange rate changes on cash and equivalents | 1,253 | (169) |
Increase (decrease) in cash and equivalents | 41,251 | (51,339) |
Cash and equivalents at beginning of year | (1,132) | 107,350 |
Cash and equivalents at September 30 | 40,119 | 56,011 |
Less cash and equivalents of discontinued operations at September 30 | 496 | 2,915 |
Cash and equivalents of continuing operations at September 30 | 39,623 | 53,095 |
Consolidating Adjustments | ||
Cash flows – operating activities | ||
Cash from (used for) operating activities - continuing operations | (163,416) | (64,766) |
Cash from (used for) operating activities - discontinued operations | 3 | (399) |
Cash from (used for) operating activities | (163,413) | (65,165) |
Cash flows – investing activities | ||
Cash from (used for) investing activities – continuing operations | 263,239 | (51,740) |
Cash from (used for) investing activities – continuing operations | 0 | 0 |
Cash from (used for) investing activities | 263,239 | (51,740) |
Cash flows – financing activities | ||
Cash from (used for) financing activities – continuing operations | (148,463) | 134,601 |
Cash from (used for) financing activities – discontinued operations | 0 | 0 |
Cash from (used for) financing activities | (148,463) | 134,601 |
Effect of currency exchange rate changes on cash and equivalents | 0 | 0 |
Increase (decrease) in cash and equivalents | (48,638) | 17,696 |
Cash and equivalents at beginning of year | 48,129 | (20,609) |
Cash and equivalents at September 30 | (509) | (2,913) |
Less cash and equivalents of discontinued operations at September 30 | 0 | 0 |
Cash and equivalents of continuing operations at September 30 | $ (509) | $ (2,913) |
SUPPLEMENTAL INFORMATION - Sche
SUPPLEMENTAL INFORMATION - Schedule of Certain Supplemental Information Related to Cash Flows (Details) - USD ($) $ in Millions | 6 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | ||
All other operating activities | ||||
All other operating activities | [1] | $ (2,881) | $ (5,356) | |
Net dispositions (purchases) of GE shares for treasury | ||||
Net dispositions (purchases) of GE shares for treasury | (2,620) | (17,969) | ||
Proceeds from principal business dispositions | (3,030) | (5,273) | ||
Correction of investing cash flows | (2,343) | (41,503) | ||
GE | ||||
All other operating activities | ||||
(Gains) losses on purchases and sales of business interests | (1,968) | (3,471) | ||
Contract assets (net) | (4,009) | (3,035) | ||
Income taxes | (1,107) | (1,318) | ||
Interest charges | 327 | 323 | ||
Principal pension plans | 1,179 | 2,520 | ||
Other | 1,636 | 169 | ||
All other operating activities | (3,942) | (4,812) | ||
Net dispositions (purchases) of GE shares for treasury | ||||
Open market purchases under share repurchase program | (3,394) | (18,708) | ||
Other purchases | (58) | (430) | ||
Dispositions | 831 | 1,168 | ||
Net dispositions (purchases) of GE shares for treasury | (2,620) | (17,969) | ||
Current tax expense (benefit) | 699 | 953 | ||
Net cash paid for income taxes | (1,806) | (2,271) | ||
Interest expense | 1,918 | 1,490 | ||
Cash paid for interest | (1,591) | (1,167) | ||
Pension costs | 2,779 | 2,674 | ||
Employer contributions | $ (1,600) | (154) | ||
Disposed of by sale | Appliances | ||||
Net dispositions (purchases) of GE shares for treasury | ||||
Proceeds from principal business dispositions | (3,130) | |||
Disposed of by sale | GE Asset Management | ||||
Net dispositions (purchases) of GE shares for treasury | ||||
Proceeds from principal business dispositions | $ (398) | |||
Adjustment of investing cash flows used for the settlement of derivative instruments classified as operating | Correction | ||||
Net dispositions (purchases) of GE shares for treasury | ||||
Correction of investing cash flows | $ 512 | |||
[1] | Included a $512 million correction of investing cash flows used for the settlement of derivative instruments classified as operating during the the six months ended June 30, 2017. Therefore, operating cash flows were understated and investing cash flows were overstated during the the six months ended June 30, 2017. |
SUPPLEMENTAL INFORMATION - S120
SUPPLEMENTAL INFORMATION - Schedule of Fair Value of Derivatives, Assets (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Offsetting Assets [Line Items] | ||
Assets | $ 4,601,000,000 | $ 5,467,000,000 |
Gross accrued interest | 491,000,000 | 768,000,000 |
Gross derivatives recognized in statement of financial position | 5,091,000,000 | 6,234,000,000 |
Amounts offset in statement of financial position | ||
Netting adjustments | (1,802,000,000) | (3,097,000,000) |
Cash collateral | (2,091,000,000) | (2,025,000,000) |
Amounts offset in statement of financial position | (3,893,000,000) | (5,121,000,000) |
Net derivatives | 1,198,000,000 | 1,113,000,000 |
Securities held as collateral | (437,000,000) | (442,000,000) |
Net amount | 761,000,000 | 671,000,000 |
Cumulative adjustment for non-performance risk | 0 | (3,000,000) |
Excluded excess cash collateral received | 90,000,000 | 6,000,000 |
Excluded excess cash collateral posted | 151,000,000 | 177,000,000 |
Excluded excess securities collateral received | 42,000,000 | 0 |
Derivatives accounted for as hedges | ||
Offsetting Assets [Line Items] | ||
Assets | 2,895,000,000 | 3,508,000,000 |
Derivatives accounted for as hedges | Interest rate contracts | ||
Offsetting Assets [Line Items] | ||
Assets | 2,663,000,000 | 3,106,000,000 |
Derivatives accounted for as hedges | Currency exchange contracts | ||
Offsetting Assets [Line Items] | ||
Assets | 233,000,000 | 402,000,000 |
Derivatives accounted for as hedges | Other contracts | ||
Offsetting Assets [Line Items] | ||
Assets | 0 | 0 |
Derivatives not accounted for as hedges | ||
Offsetting Assets [Line Items] | ||
Assets | 1,705,000,000 | 1,958,000,000 |
Derivatives not accounted for as hedges | Interest rate contracts | ||
Offsetting Assets [Line Items] | ||
Assets | 74,000,000 | 62,000,000 |
Derivatives not accounted for as hedges | Currency exchange contracts | ||
Offsetting Assets [Line Items] | ||
Assets | 1,499,000,000 | 1,778,000,000 |
Derivatives not accounted for as hedges | Other contracts | ||
Offsetting Assets [Line Items] | ||
Assets | $ 132,000,000 | $ 119,000,000 |
SUPPLEMENTAL INFORMATION - S121
SUPPLEMENTAL INFORMATION - Schedule of Fair Value of Derivatives, Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Offsetting Liabilities [Line Items] | ||
Liabilities | $ 2,453 | $ 4,883 |
Gross accrued interest | 0 | (24) |
Gross derivatives recognized in statement of financial position | 2,454 | 4,859 |
Amounts offset in statement of financial position | ||
Netting adjustments | (1,802) | (3,094) |
Cash collateral | (276) | (1,355) |
Amounts offset in statement of financial position | (2,078) | (4,449) |
Net derivatives | 376 | 410 |
Securities held as collateral | 0 | 0 |
Net amount | 376 | 410 |
Derivatives accounted for as hedges | ||
Offsetting Liabilities [Line Items] | ||
Liabilities | 213 | 834 |
Derivatives accounted for as hedges | Other contracts | ||
Offsetting Liabilities [Line Items] | ||
Liabilities | 0 | 0 |
Derivatives accounted for as hedges | Interest rate contracts | ||
Offsetting Liabilities [Line Items] | ||
Liabilities | 108 | 210 |
Derivatives accounted for as hedges | Currency exchange contracts | ||
Offsetting Liabilities [Line Items] | ||
Liabilities | 105 | 624 |
Derivatives not accounted for as hedges | ||
Offsetting Liabilities [Line Items] | ||
Liabilities | 2,240 | 4,048 |
Derivatives not accounted for as hedges | Other contracts | ||
Offsetting Liabilities [Line Items] | ||
Liabilities | 46 | 17 |
Derivatives not accounted for as hedges | Interest rate contracts | ||
Offsetting Liabilities [Line Items] | ||
Liabilities | 6 | 20 |
Derivatives not accounted for as hedges | Currency exchange contracts | ||
Offsetting Liabilities [Line Items] | ||
Liabilities | $ 2,187 | $ 4,011 |
SUPPLEMENTAL INFORMATION - S122
SUPPLEMENTAL INFORMATION - Schedule of Cash Flow Hedge Activity (Details) - Cash Flow Hedges - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in AOCI | $ (225) | $ (2) | $ (281) | $ 43 |
Gain (loss) reclassified from AOCI into earnings | 104 | (57) | 167 | (128) |
Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in AOCI | 225 | 2 | 281 | (43) |
Gain (loss) reclassified from AOCI into earnings | 104 | (57) | 167 | (128) |
Hedges | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in AOCI | 1 | 1 | 3 | 32 |
Gain (loss) reclassified from AOCI into earnings | (6) | (12) | (21) | (67) |
Hedges | Currency exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in AOCI | 224 | 0 | 278 | (76) |
Gain (loss) reclassified from AOCI into earnings | 110 | (46) | 189 | (59) |
Hedges | Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in AOCI | 0 | 1 | 0 | 1 |
Gain (loss) reclassified from AOCI into earnings | $ 0 | $ 0 | $ 0 | $ (3) |
SUPPLEMENTAL INFORMATION - Narr
SUPPLEMENTAL INFORMATION - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain expected to be transferred to earnings as an expense | $ 39 | ||
Maximum term of derivative instruments that hedge forecasted transactions | 15 years | 16 years | |
Fair value of collateral | $ 2,529 | ||
Fair value of cash collateral | 2,091 | $ 2,025 | |
Fair value of collateral in the form of securities | 437 | $ 442 | |
Fair value of collateral posted | 276 | ||
Exposure to counterparties (including accrued interest), net of collateral held | 681 | ||
Net amount of derivative liability | 271 | ||
Amounts Offset In Statement Of Financial Position | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Fair value of cash collateral | 2,091 | ||
Cash flow hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Pre-tax amount in AOCI related to cash flow hedges of forecasted transactions | $ 160 |
SEGMENT OPERATIONS (Details)
SEGMENT OPERATIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 33,472 | $ 29,266 | $ 90,691 | $ 90,604 |
Revenues, V% | 14.00% | 0.00% | ||
Corporate items and eliminations | $ 1,466 | 2,074 | $ 3,812 | 6,137 |
GE interest and other financial charges | (1,232) | (961) | (3,545) | (4,023) |
GE benefit (provision) for income taxes | 334 | (18) | 303 | (302) |
Earnings (loss) from continuing operations attributable to GE common shareowners | $ 1,905 | 2,097 | $ 4,101 | 5,645 |
Earnings (loss) from continuing operations attributable to GE common shareowners, V% | (9.00%) | (27.00%) | ||
Earnings (loss) from discontinued operations, net of taxes | $ (106) | (105) | $ (490) | (954) |
Earnings (loss) from discontinued operations, net of taxes, V% | (1.00%) | 49.00% | ||
Less net earnings attributable to noncontrolling interests, discontinued operations | $ (1) | (2) | $ 6 | 2 |
Earnings (loss) from discontinued operations, net of tax and noncontrolling interest | $ (105) | (103) | $ (497) | (956) |
Earnings (loss) from discontinued operations, net of tax and noncontrolling interest, V% | (2.00%) | 48.00% | ||
Net earnings (loss) attributable to GE common shareowners | $ 1,800 | 1,994 | $ 3,604 | 4,689 |
Consolidated net earnings (loss) attributable to the GE common shareowners, V% | (10.00%) | (23.00%) | ||
Oil & Gas | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit excluding restructuring and other charges | $ 231 | $ 593 | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 32,444 | 29,936 | $ 91,468 | 89,923 |
Revenues, V% | 8.00% | 2.00% | ||
Segment profit (loss) | $ 3,654 | 4,345 | $ 11,003 | 10,290 |
Segment profit (loss), V% | (16.00%) | 7.00% | ||
Operating Segments | Total industrial segment revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 30,046 | 27,335 | $ 83,943 | 81,667 |
Revenues, V% | 10.00% | 3.00% | ||
Segment profit (loss) | $ 3,630 | 4,320 | $ 11,198 | 11,756 |
Segment profit (loss), V% | (16.00%) | (5.00%) | ||
Operating Segments | Power | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 8,679 | 8,995 | $ 26,569 | 25,664 |
Revenues, V% | (4.00%) | 4.00% | ||
Segment profit (loss) | $ 611 | 1,259 | $ 2,526 | 2,924 |
Segment profit (loss), V% | (51.00%) | (14.00%) | ||
Operating Segments | Renewable Energy | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,905 | 2,770 | $ 7,406 | 6,533 |
Revenues, V% | 5.00% | 13.00% | ||
Segment profit (loss) | $ 257 | 202 | $ 524 | 413 |
Segment profit (loss), V% | 27.00% | 27.00% | ||
Operating Segments | Oil & Gas | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 5,365 | 2,964 | $ 11,475 | 9,497 |
Revenues, V% | 81.00% | 21.00% | ||
Segment profit (loss) | $ (36) | 353 | $ 325 | 981 |
Segment profit (loss), V% | (67.00%) | |||
Operating Segments | Aviation | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 6,816 | 6,300 | $ 20,153 | 19,074 |
Revenues, V% | 8.00% | 6.00% | ||
Segment profit (loss) | $ 1,680 | 1,494 | $ 4,856 | 4,366 |
Segment profit (loss), V% | 12.00% | 11.00% | ||
Operating Segments | Healthcare | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 4,724 | 4,482 | $ 13,714 | 13,190 |
Revenues, V% | 5.00% | 4.00% | ||
Segment profit (loss) | $ 820 | 717 | $ 2,289 | 2,130 |
Segment profit (loss), V% | 14.00% | 7.00% | ||
Operating Segments | Transportation | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,074 | 1,249 | $ 3,185 | 3,471 |
Revenues, V% | (14.00%) | (8.00%) | ||
Segment profit (loss) | $ 276 | 309 | $ 634 | 747 |
Segment profit (loss), V% | (11.00%) | (15.00%) | ||
Operating Segments | Lighting | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 483 | 576 | $ 1,442 | 4,239 |
Revenues, V% | (16.00%) | (66.00%) | ||
Segment profit (loss) | $ 23 | (15) | $ 43 | 196 |
Segment profit (loss), V% | (78.00%) | |||
Operating Segments | Capital | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,397 | 2,600 | $ 7,525 | 8,256 |
Revenues, V% | (8.00%) | (9.00%) | ||
Segment profit (loss) | $ 24 | 26 | $ (195) | (1,466) |
Segment profit (loss), V% | (8.00%) | 87.00% | ||
Corporate items and eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,028 | (670) | $ (777) | 681 |
Corporate items and eliminations | (1,095) | (1,524) | (4,687) | (2,120) |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
GE interest and other financial charges | (718) | (483) | (1,918) | (1,490) |
GE benefit (provision) for income taxes | $ 64 | $ (241) | $ (297) | $ (1,034) |