Cover Page
Cover Page shares in Thousands | 6 Months Ended |
Jun. 30, 2019shares | |
Cover page. | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2019 |
Document Transition Report | false |
Entity File Number | 001-00035 |
Entity Registrant Name | GENERAL ELECTRIC CO |
Entity Central Index Key | 0000040545 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | NY |
Entity Tax Identification Number | 14-0689340 |
Entity Address, Address Line One | 41 Farnsworth Street, |
Entity Address, City or Town | Boston |
Entity Address, State or Province | MA |
Entity Address, Postal Zip Code | 02210 |
City Area Code | 617 |
Local Phone Number | 443-3000 |
Title of 12(b) Security | Common stock, par value $0.06 per share |
Trading Symbol | GE |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 8,727,072 |
STATEMENT OF EARNINGS (LOSS) (U
STATEMENT OF EARNINGS (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Revenues | |||||
Revenues | $ 28,831 | $ 29,162 | $ 56,117 | $ 56,950 | |
Costs and expenses | |||||
Cost of sales | 21,817 | 21,749 | 42,170 | 42,659 | |
Selling, general and administrative expenses | 4,184 | 4,346 | 8,330 | 8,434 | |
Interest and other financial charges | 991 | 1,291 | 2,123 | 2,573 | |
Insurance losses and annuity benefits | 638 | 669 | 1,249 | 1,299 | |
Goodwill impairment | 744 | 0 | 744 | 0 | |
Non-operating benefit costs | 557 | 690 | 1,123 | 1,376 | |
Other costs and expenses | 167 | 66 | 248 | 186 | |
Total costs and expenses | 29,097 | 28,812 | 55,986 | 56,527 | |
Other income | (8) | 886 | 870 | 1,091 | |
GE Capital earnings (loss) from continuing operations | 0 | 0 | 0 | 0 | |
Earnings (loss) from continuing operations before income taxes | (274) | 1,236 | 1,001 | 1,513 | |
Benefit (provision) for income taxes | 148 | (504) | (74) | (454) | |
Earnings (loss) from continuing operations | (126) | 732 | 926 | 1,060 | |
Earnings (loss) from discontinued operations, net of taxes (Note 2) | 231 | (63) | 2,823 | (1,504) | |
Net earnings (loss) | 104 | 669 | 3,749 | (444) | |
Less net earnings (loss) attributable to noncontrolling interests | (23) | (132) | 34 | (98) | |
Net earnings (loss) attributable to the Company | 127 | 800 | 3,716 | (347) | |
Preferred stock dividends | (188) | (185) | (228) | (222) | |
Net earnings (loss) attributable to GE common shareowners | (61) | 615 | 3,488 | (568) | |
Amounts attributable to GE common shareowners | |||||
Earnings (loss) from continuing operations | (126) | 732 | 926 | 1,060 | |
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | (23) | (132) | 36 | (102) | |
Earnings (loss) from continuing operations attributable to the Company | (103) | 864 | 891 | 1,161 | |
Preferred stock dividends | (188) | (185) | (228) | (222) | |
Earnings (loss) from continuing operations attributable to GE common shareowners | (291) | 679 | 663 | 940 | |
Earnings (loss) from discontinued operations, net of taxes (Note 2) | 231 | (63) | 2,823 | (1,504) | |
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | 0 | 1 | (2) | 4 | |
Net earnings (loss) attributable to GE common shareowners | $ (61) | $ 615 | $ 3,488 | $ (568) | |
Earnings (loss) per share from continuing operations (Note 16) | |||||
Diluted earnings (loss) per share (in dollars per share) | $ (0.03) | $ 0.08 | $ 0.07 | $ 0.11 | |
Basic earnings (loss) per share (in dollars per share) | (0.03) | 0.08 | 0.08 | 0.11 | |
Net earnings (loss) per share (Note 16) | |||||
Diluted earnings (loss) per share (in dollars per share) | (0.01) | 0.07 | 0.40 | (0.07) | |
Basic earnings (loss) per share (in dollars per share) | (0.01) | 0.07 | 0.40 | (0.07) | |
Dividends declared per common share (in dollars per share) | $ 0.01 | $ 0.12 | $ 0.02 | $ 0.24 | |
Goods | |||||
Revenues | |||||
Sales | $ 17,186 | $ 17,405 | $ 33,385 | $ 34,147 | |
Costs and expenses | |||||
Cost of sales | 14,338 | 14,467 | 27,888 | 28,223 | |
Services | |||||
Revenues | |||||
Sales | 9,601 | 9,746 | 18,745 | 19,006 | |
Costs and expenses | |||||
Cost of sales | 7,479 | 7,282 | 14,282 | 14,437 | |
GE Capital revenues from services | |||||
Revenues | |||||
Revenues | 2,043 | 2,011 | 3,987 | 3,797 | |
GE | |||||
Revenues | |||||
Revenues | [1] | 26,833 | 27,137 | 52,242 | 53,159 |
Costs and expenses | |||||
Selling, general and administrative expenses | [1] | 4,113 | 4,190 | 8,052 | 8,072 |
Interest and other financial charges | [1] | 444 | 686 | 1,032 | 1,326 |
Insurance losses and annuity benefits | [1] | 0 | 0 | 0 | 0 |
Goodwill impairment | [1] | 744 | 0 | 744 | 0 |
Non-operating benefit costs | [1] | 554 | 688 | 1,115 | 1,369 |
Other costs and expenses | [1] | 6 | (1) | 6 | (2) |
Total costs and expenses | [1] | 27,194 | 26,764 | 52,259 | 52,379 |
Other income | [1] | (1) | 866 | 883 | 1,057 |
GE Capital earnings (loss) from continuing operations | [1] | (89) | (207) | 46 | (422) |
Earnings (loss) from continuing operations before income taxes | [1] | (452) | 1,032 | 912 | 1,415 |
Benefit (provision) for income taxes | [1] | 137 | (487) | (213) | (576) |
Earnings (loss) from continuing operations | [1] | (315) | 545 | 699 | 840 |
Earnings (loss) from discontinued operations, net of taxes (Note 2) | [1] | 231 | (63) | 2,823 | (1,504) |
Net earnings (loss) | [1] | (84) | 482 | 3,522 | (664) |
Less net earnings (loss) attributable to noncontrolling interests | [1] | (23) | (133) | 33 | (96) |
Net earnings (loss) attributable to the Company | [1] | (61) | 615 | 3,488 | (568) |
Preferred stock dividends | [1] | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to GE common shareowners | [1] | (61) | 615 | 3,488 | (568) |
Amounts attributable to GE common shareowners | |||||
Earnings (loss) from continuing operations | [1] | (315) | 545 | 699 | 840 |
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | [1] | (23) | (134) | 36 | (100) |
Earnings (loss) from continuing operations attributable to the Company | [1] | (291) | 679 | 663 | 940 |
Preferred stock dividends | [1] | 0 | 0 | 0 | 0 |
Earnings (loss) from continuing operations attributable to GE common shareowners | [1] | (291) | 679 | 663 | 940 |
Earnings (loss) from discontinued operations, net of taxes (Note 2) | [1] | 231 | (63) | 2,823 | (1,504) |
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | [1] | 0 | 1 | (2) | 4 |
Net earnings (loss) attributable to GE common shareowners | [1] | (61) | 615 | 3,488 | (568) |
GE | Goods | |||||
Revenues | |||||
Sales | [1] | 17,202 | 17,364 | 33,467 | 34,097 |
Costs and expenses | |||||
Cost of sales | [1] | 14,358 | 14,433 | 27,983 | 28,181 |
GE | Services | |||||
Revenues | |||||
Sales | [1] | 9,630 | 9,773 | 18,776 | 19,062 |
Costs and expenses | |||||
Cost of sales | [1] | 6,976 | 6,769 | 13,327 | 13,434 |
GE | GE Capital revenues from services | |||||
Revenues | |||||
Revenues | [1] | 0 | 0 | 0 | 0 |
Financial Services (GE Capital) | |||||
Revenues | |||||
Revenues | 2,321 | 2,429 | 4,548 | 4,602 | |
Costs and expenses | |||||
Selling, general and administrative expenses | 211 | 312 | 478 | 655 | |
Interest and other financial charges | 646 | 772 | 1,323 | 1,592 | |
Insurance losses and annuity benefits | 668 | 694 | 1,302 | 1,339 | |
Goodwill impairment | 0 | 0 | 0 | 0 | |
Non-operating benefit costs | 3 | 3 | 8 | 7 | |
Other costs and expenses | 178 | 79 | 277 | 212 | |
Total costs and expenses | 2,233 | 2,432 | 4,413 | 4,926 | |
Other income | 0 | 0 | 0 | 0 | |
GE Capital earnings (loss) from continuing operations | 0 | 0 | 0 | 0 | |
Earnings (loss) from continuing operations before income taxes | 88 | (3) | 135 | (324) | |
Benefit (provision) for income taxes | 11 | (17) | 139 | 122 | |
Earnings (loss) from continuing operations | 99 | (20) | 273 | (202) | |
Earnings (loss) from discontinued operations, net of taxes (Note 2) | 238 | (66) | 273 | (1,618) | |
Net earnings (loss) | 336 | (86) | 547 | (1,821) | |
Less net earnings (loss) attributable to noncontrolling interests | 0 | 2 | 0 | (2) | |
Net earnings (loss) attributable to the Company | 336 | (88) | 547 | (1,819) | |
Preferred stock dividends | (188) | (185) | (228) | (222) | |
Net earnings (loss) attributable to GE common shareowners | 148 | (273) | 319 | (2,041) | |
Amounts attributable to GE common shareowners | |||||
Earnings (loss) from continuing operations | 99 | (20) | 273 | (202) | |
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | 0 | 2 | 0 | (2) | |
Earnings (loss) from continuing operations attributable to the Company | 99 | (22) | 273 | (201) | |
Preferred stock dividends | (188) | (185) | (228) | (222) | |
Earnings (loss) from continuing operations attributable to GE common shareowners | (89) | (207) | 46 | (422) | |
Earnings (loss) from discontinued operations, net of taxes (Note 2) | 238 | (66) | 273 | (1,618) | |
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | 0 | 0 | 0 | 0 | |
Net earnings (loss) attributable to GE common shareowners | 148 | (273) | 319 | (2,041) | |
Financial Services (GE Capital) | Goods | |||||
Revenues | |||||
Sales | 18 | 31 | 34 | 63 | |
Costs and expenses | |||||
Cost of sales | 14 | 24 | 27 | 50 | |
Financial Services (GE Capital) | Services | |||||
Revenues | |||||
Sales | 0 | 0 | 0 | 0 | |
Costs and expenses | |||||
Cost of sales | 512 | 546 | 999 | 1,072 | |
Financial Services (GE Capital) | GE Capital revenues from services | |||||
Revenues | |||||
Revenues | $ 2,303 | $ 2,398 | $ 4,514 | $ 4,539 | |
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 104 | $ 669 | $ 3,749 | $ (444) |
Less net earnings (loss) attributable to noncontrolling interests | (23) | (132) | 34 | (98) |
Net earnings (loss) attributable to the Company | 127 | 800 | 3,716 | (347) |
Other comprehensive income (loss) | ||||
Investment securities | 76 | 24 | 99 | 124 |
Currency translation adjustments | (141) | (1,669) | 283 | (838) |
Cash flow hedges | (25) | (81) | 12 | (26) |
Benefit plans | 639 | 941 | 1,183 | 1,658 |
Other comprehensive income (loss) | 547 | (784) | 1,577 | 918 |
Less: other comprehensive income (loss) attributable to noncontrolling interests | (85) | (213) | 15 | (53) |
Other comprehensive income (loss) attributable to the Company | 633 | (571) | 1,562 | 971 |
Comprehensive income (loss) | 651 | (115) | 5,326 | 474 |
Less: comprehensive income (loss) attributable to noncontrolling interests | (109) | (345) | 49 | (151) |
Comprehensive income (loss) attributable to the Company | $ 760 | $ 229 | $ 5,277 | $ 625 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS' EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Accumulated other comprehensive income (loss) | Investment securities | Currency translation adjustments | Cash flow hedges | Benefit plans | Other capital | Retained earnings | Common stock held in treasury | |
Beginning balance at Dec. 31, 2017 | $ (14,404) | $ 37,384 | $ 117,245 | $ (84,902) | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Other comprehensive income (loss) | $ 918 | $ 123 | $ (784) | $ (26) | $ 1,659 | |||||
Gains (losses) on treasury stock dispositions | (308) | |||||||||
Stock-based compensation | 207 | |||||||||
Other changes | 69 | |||||||||
Net earnings (loss) attributable to the Company | (347) | (347) | ||||||||
Dividends and other transactions with shareowners | (2,486) | |||||||||
Changes in accounting (Note 1) | 501 | |||||||||
Purchases | (143) | |||||||||
Dispositions | 574 | |||||||||
Ending balance at Jun. 30, 2018 | 71,754 | [1] | (13,432) | 21 | (5,446) | 36 | (8,043) | 37,352 | 114,913 | (84,471) |
Beginning balance at Mar. 31, 2018 | (12,862) | 37,339 | 115,477 | (84,697) | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Other comprehensive income (loss) | (784) | 25 | (1,457) | (79) | 940 | |||||
Gains (losses) on treasury stock dispositions | (303) | |||||||||
Stock-based compensation | 117 | |||||||||
Other changes | 199 | |||||||||
Net earnings (loss) attributable to the Company | 800 | 800 | ||||||||
Dividends and other transactions with shareowners | (1,364) | |||||||||
Purchases | (58) | |||||||||
Dispositions | 284 | |||||||||
Ending balance at Jun. 30, 2018 | 71,754 | [1] | (13,432) | 21 | (5,446) | 36 | (8,043) | 37,352 | 114,913 | (84,471) |
Preferred stock issued | 6 | |||||||||
Common stock issued | 702 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
GE shareowners' equity balance | 55,069 | |||||||||
Noncontrolling interests | 16,685 | |||||||||
Preferred stock issued | 6 | |||||||||
Common stock issued | 702 | |||||||||
GE shareowners' equity balance | 30,981 | |||||||||
Noncontrolling interests | 20,500 | |||||||||
Beginning balance at Dec. 31, 2018 | 51,481 | (14,414) | 35,504 | 93,109 | (83,925) | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Other comprehensive income (loss) | 1,577 | 98 | 260 | 12 | 1,192 | |||||
Gains (losses) on treasury stock dispositions | (657) | |||||||||
Stock-based compensation | 264 | |||||||||
Other changes | (786) | |||||||||
Net earnings (loss) attributable to the Company | 3,716 | 3,716 | ||||||||
Dividends and other transactions with shareowners | (419) | |||||||||
Changes in accounting (Note 1) | 368 | |||||||||
Purchases | (45) | |||||||||
Dispositions | 834 | |||||||||
Ending balance at Jun. 30, 2019 | 56,129 | [1] | (12,852) | 60 | (5,874) | 26 | (7,063) | 34,324 | 96,773 | (83,137) |
Beginning balance at Mar. 31, 2019 | (13,485) | 34,345 | 96,921 | (83,328) | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Other comprehensive income (loss) | 547 | 75 | (64) | (23) | 645 | |||||
Gains (losses) on treasury stock dispositions | (150) | |||||||||
Stock-based compensation | 127 | |||||||||
Other changes | 2 | |||||||||
Net earnings (loss) attributable to the Company | 127 | 127 | ||||||||
Dividends and other transactions with shareowners | (274) | |||||||||
Purchases | (7) | |||||||||
Dispositions | 198 | |||||||||
Ending balance at Jun. 30, 2019 | 56,129 | [1] | $ (12,852) | $ 60 | $ (5,874) | $ 26 | $ (7,063) | $ 34,324 | $ 96,773 | $ (83,137) |
Preferred stock issued | 6 | |||||||||
Common stock issued | 702 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
GE shareowners' equity balance | 35,816 | |||||||||
Noncontrolling interests | $ 20,312 | |||||||||
[1] | Total equity balance decreased by $(15,625) million in the last twelve months from June 30, 2018 primarily attributable to a non-cash after-tax goodwill impairment charge of $(22,371) million, partially offset by an increase in non-controlling interest of $4,214 million due to a reduction in our economic interest in BHGE in 2018. See our 2018 Form 10-K for further information. |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS' EQUITY (UNAUDITED) (Parenthetical) $ in Millions | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Decrease in total equity balance | $ (15,625) |
Non-cash after-tax goodwill impairment charge | (22,371) |
Increase in non-controlling interest due to reduction in economic interest in BHGE | $ 4,214 |
STATEMENT OF FINANCIAL POSITION
STATEMENT OF FINANCIAL POSITION - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | ||
Assets | ||||
Cash, cash equivalents and restricted cash | $ 31,968 | $ 34,847 | ||
Investment securities (Note 3) | 39,383 | 33,835 | ||
Current receivables (Note 4) | 20,152 | 19,484 | ||
Financing receivables – net (Note 5) | 3,436 | 7,699 | ||
Inventories (Note 6) | 19,971 | 18,389 | ||
Other GE Capital receivables | 6,603 | 6,674 | ||
Property, plant and equipment – net (Note 7) | 49,943 | 49,839 | ||
Operating lease assets (Note 7) | 3,860 | 0 | ||
Receivable from GE Capital | 0 | 0 | ||
Investment in GE Capital | 0 | 0 | ||
Goodwill (Note 8) | 52,272 | 58,730 | ||
Other intangible assets – net (Note 8) | 16,653 | 17,897 | ||
Contract and other deferred assets (Note 10) | 19,176 | 19,231 | ||
All other assets | 23,401 | 19,943 | ||
Deferred income taxes (Note 14) | 11,894 | 12,129 | ||
Assets of businesses held for sale (Note 2) | 9,206 | 1,630 | ||
Assets of discontinued operations (Note 2) | 4,191 | 9,257 | ||
Total assets | 312,109 | 309,585 | ||
Liabilities and equity | ||||
Short-term borrowings (Note 11) | 15,620 | 12,821 | ||
Short-term borrowings assumed by GE (Note 11) | 0 | 0 | ||
Accounts payable, principally trade accounts | 17,036 | 16,722 | ||
Progress collections and deferred income (Note 10) | 20,901 | 20,577 | ||
Other GE current liabilities | 16,720 | 15,865 | ||
Non-recourse borrowings of consolidated securitization entities (Note 11) | 1,423 | 1,875 | ||
Long-term borrowings (Note 11) | 88,735 | 95,234 | ||
Long-term borrowings assumed by GE (Note 11) | 0 | 0 | ||
Operating lease liabilities (Note 7) | 4,074 | 0 | ||
Insurance liabilities and annuity benefits (Note 12) | 38,125 | 35,562 | ||
Non-current compensation and benefits | 32,653 | 33,775 | ||
All other liabilities | 18,832 | 21,219 | ||
Liabilities of businesses held for sale (Note 2) | 1,478 | 708 | ||
Liabilities of discontinued operations (Note 2) | 382 | 3,747 | ||
Total liabilities | 255,980 | 258,104 | ||
Preferred stock (5,939,875 shares outstanding at both June 30, 2019 and December 31, 2018) | 6 | 6 | ||
Common stock (8,727,072,000 and 8,702,227,000 shares outstanding at June 30, 2019 and December 31, 2018, respectively) | 702 | 702 | ||
Accumulated other comprehensive income (loss) – net attributable to GE | (12,852) | (14,414) | ||
Other capital | 34,324 | 35,504 | ||
Retained earnings | 96,773 | 93,109 | ||
Less common stock held in treasury | (83,137) | (83,925) | ||
Total GE shareowners’ equity | 35,816 | 30,981 | ||
Noncontrolling interests | 20,312 | 20,500 | ||
Total equity (Note 15) | 56,129 | [1] | 51,481 | |
Total liabilities and equity | 312,109 | 309,585 | ||
GE | ||||
Assets | ||||
Cash, cash equivalents and restricted cash | [2] | 20,055 | 20,355 | |
Investment securities (Note 3) | [2] | 2,055 | 514 | |
Current receivables (Note 4) | [2] | 16,864 | 15,103 | |
Financing receivables – net (Note 5) | [2] | 0 | 0 | |
Inventories (Note 6) | [2] | 19,971 | 18,389 | |
Other GE Capital receivables | [2] | 0 | 0 | |
Property, plant and equipment – net (Note 7) | [2] | 20,377 | 21,056 | |
Operating lease assets (Note 7) | [2] | 4,077 | 0 | |
Receivable from GE Capital | [2] | 21,223 | 22,513 | |
Investment in GE Capital | [2] | 13,476 | 11,412 | |
Goodwill (Note 8) | [2] | 51,394 | 57,826 | |
Other intangible assets – net (Note 8) | [2] | 16,434 | 17,661 | |
Contract and other deferred assets (Note 10) | [2] | 19,176 | 19,231 | |
All other assets | [2] | 11,016 | 10,164 | |
Deferred income taxes (Note 14) | [2] | 9,711 | 10,189 | |
Assets of businesses held for sale (Note 2) | [2] | 8,969 | 1,525 | |
Assets of discontinued operations (Note 2) | [2] | 112 | 4,573 | |
Total assets | [2] | 234,911 | 230,510 | |
Liabilities and equity | ||||
Short-term borrowings (Note 11) | [2] | 5,556 | 5,192 | |
Short-term borrowings assumed by GE (Note 11) | [2] | 6,962 | 4,207 | |
Accounts payable, principally trade accounts | [2] | 21,159 | 22,085 | |
Progress collections and deferred income (Note 10) | [2] | 21,138 | 20,833 | |
Other GE current liabilities | [2] | 16,931 | 15,865 | |
Non-recourse borrowings of consolidated securitization entities (Note 11) | [2] | 0 | 0 | |
Long-term borrowings (Note 11) | [2] | 26,294 | 27,089 | |
Long-term borrowings assumed by GE (Note 11) | [2] | 28,010 | 32,054 | |
Operating lease liabilities (Note 7) | [2] | 4,302 | 0 | |
Insurance liabilities and annuity benefits (Note 12) | [2] | 0 | 0 | |
Non-current compensation and benefits | [2] | 32,056 | 32,910 | |
All other liabilities | [2] | 14,775 | 16,100 | |
Liabilities of businesses held for sale (Note 2) | [2] | 1,497 | 748 | |
Liabilities of discontinued operations (Note 2) | [2] | 108 | 1,947 | |
Total liabilities | [2] | 178,787 | 179,030 | |
Preferred stock (5,939,875 shares outstanding at both June 30, 2019 and December 31, 2018) | [2] | 6 | 6 | |
Common stock (8,727,072,000 and 8,702,227,000 shares outstanding at June 30, 2019 and December 31, 2018, respectively) | [2] | 702 | 702 | |
Accumulated other comprehensive income (loss) – net attributable to GE | [2] | (12,852) | (14,414) | |
Other capital | [2] | 34,324 | 35,504 | |
Retained earnings | [2] | 96,773 | 93,109 | |
Less common stock held in treasury | [2] | (83,137) | (83,925) | |
Total GE shareowners’ equity | [2] | 35,816 | 30,981 | |
Noncontrolling interests | [2] | 20,308 | 20,499 | |
Total equity (Note 15) | [2] | 56,124 | 51,480 | |
Total liabilities and equity | [2] | 234,911 | 230,510 | |
Financial Services (GE Capital) | ||||
Assets | ||||
Cash, cash equivalents and restricted cash | 11,913 | 14,492 | ||
Investment securities (Note 3) | 37,403 | 33,393 | ||
Current receivables (Note 4) | 0 | 0 | ||
Financing receivables – net (Note 5) | 8,210 | 13,628 | ||
Inventories (Note 6) | 0 | 0 | ||
Other GE Capital receivables | 13,553 | 15,361 | ||
Property, plant and equipment – net (Note 7) | 29,955 | 29,510 | ||
Operating lease assets (Note 7) | 256 | 0 | ||
Receivable from GE Capital | 0 | 0 | ||
Investment in GE Capital | 0 | 0 | ||
Goodwill (Note 8) | 878 | 904 | ||
Other intangible assets – net (Note 8) | 219 | 236 | ||
Contract and other deferred assets (Note 10) | 0 | 0 | ||
All other assets | 12,842 | 9,869 | ||
Deferred income taxes (Note 14) | 2,178 | 1,936 | ||
Assets of businesses held for sale (Note 2) | 0 | 0 | ||
Assets of discontinued operations (Note 2) | 4,078 | 4,610 | ||
Total assets | 121,485 | 123,939 | ||
Liabilities and equity | ||||
Short-term borrowings (Note 11) | 4,085 | 4,999 | ||
Short-term borrowings assumed by GE (Note 11) | 2,393 | 2,684 | ||
Accounts payable, principally trade accounts | 1,738 | 1,612 | ||
Progress collections and deferred income (Note 10) | 0 | 0 | ||
Other GE current liabilities | 0 | 0 | ||
Non-recourse borrowings of consolidated securitization entities (Note 11) | 1,423 | 1,875 | ||
Long-term borrowings (Note 11) | 34,494 | 36,154 | ||
Long-term borrowings assumed by GE (Note 11) | 18,830 | 19,828 | ||
Operating lease liabilities (Note 7) | 244 | 0 | ||
Insurance liabilities and annuity benefits (Note 12) | 38,639 | 35,994 | ||
Non-current compensation and benefits | 588 | 856 | ||
All other liabilities | 5,295 | 6,724 | ||
Liabilities of businesses held for sale (Note 2) | 0 | 0 | ||
Liabilities of discontinued operations (Note 2) | 274 | 1,800 | ||
Total liabilities | 108,004 | 112,527 | ||
Preferred stock (5,939,875 shares outstanding at both June 30, 2019 and December 31, 2018) | 6 | 6 | ||
Common stock (8,727,072,000 and 8,702,227,000 shares outstanding at June 30, 2019 and December 31, 2018, respectively) | 0 | 0 | ||
Accumulated other comprehensive income (loss) – net attributable to GE | (785) | (783) | ||
Other capital | 14,499 | 12,883 | ||
Retained earnings | (243) | (694) | ||
Less common stock held in treasury | 0 | 0 | ||
Total GE shareowners’ equity | 13,476 | 11,412 | ||
Noncontrolling interests | 5 | 1 | ||
Total equity (Note 15) | 13,481 | 11,412 | ||
Total liabilities and equity | $ 121,485 | $ 123,939 | ||
[1] | Total equity balance decreased by $(15,625) million in the last twelve months from June 30, 2018 primarily attributable to a non-cash after-tax goodwill impairment charge of $(22,371) million, partially offset by an increase in non-controlling interest of $4,214 million due to a reduction in our economic interest in BHGE in 2018. See our 2018 Form 10-K for further information. | |||
[2] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
STATEMENT OF FINANCIAL POSITI_2
STATEMENT OF FINANCIAL POSITION (Parenthetical) - shares | Jun. 30, 2019 | Dec. 31, 2018 |
Preferred stock, shares outstanding | 5,939,875 | 5,939,875 |
Common stock, shares outstanding | 8,727,072,000 | 8,702,227,000 |
GE Capital | ||
Preferred stock, shares outstanding | 5,939,875 | 5,939,875 |
Common stock, shares outstanding | 8,727,072,000 | 8,702,227,000 |
GE | ||
Preferred stock, shares outstanding | 5,939,875 | 5,939,875 |
Common stock, shares outstanding | 8,727,072,000 | 8,702,227,000 |
STATEMENT OF CASH FLOWS (UNAUDI
STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Cash flows – operating activities | |||
Net earnings (loss) | $ 3,749 | $ (444) | |
(Earnings) loss from discontinued operations | (2,823) | 1,504 | |
Adjustments to reconcile net earnings (loss) to cash provided from operating activities | |||
Depreciation and amortization of property, plant and equipment (Note 7) | 2,482 | 2,640 | |
Amortization of intangible assets (Note 8) | 916 | 1,149 | |
Goodwill impairments (Note 8) | 744 | 0 | |
(Earnings) loss from continuing operations retained by GE Capital | 0 | 0 | |
(Gains) losses on purchases and sales of business interests | (54) | (300) | |
Principal pension plans cost (Note 13) | 1,693 | 2,094 | |
Principal pension plans employer contributions | (133) | (1,042) | |
Other postretirement benefit plans (net) | (548) | (669) | |
Provision (benefit) for income taxes | 74 | 454 | |
Cash recovered (paid) during the year for income taxes | (1,246) | (936) | |
Decrease (increase) in contract and other deferred assets | (502) | (645) | |
Decrease (increase) in GE current receivables | (933) | 362 | |
Decrease (increase) in inventories | (2,258) | (1,515) | |
Increase (decrease) in accounts payable | 902 | 279 | |
Increase (decrease) in GE progress collections | 445 | (1,059) | |
All other operating activities | (740) | (2,251) | |
Cash from (used for) operating activities – continuing operations | 1,770 | (382) | |
Cash from (used for) operating activities – discontinued operations | (1,749) | (293) | |
Cash from (used for) operating activities | 20 | (675) | |
Cash flows – investing activities | |||
Additions to property, plant and equipment | (3,514) | (3,264) | |
Dispositions of property, plant and equipment | 2,033 | 1,771 | |
Additions to internal-use software | (167) | (180) | |
Net decrease (increase) in financing receivables | 377 | 837 | |
Proceeds from sale of discontinued operations | 2,827 | 29 | |
Proceeds from principal business dispositions | 1,058 | 2,361 | |
Net cash from (payments for) principal businesses purchased | 0 | 0 | |
Capital contribution from GE to GE Capital | 0 | 0 | |
All other investing activities | (968) | 3,713 | |
Cash from (used for) investing activities – continuing operations | 1,646 | 5,266 | |
Cash from (used for) investing activities – discontinued operations | 1,683 | 171 | |
Cash from (used for) investing activities | 3,329 | 5,437 | |
Cash flows – financing activities | |||
Net increase (decrease) in borrowings (maturities of 90 days or less) | (434) | (2,051) | |
Newly issued debt (maturities longer than 90 days) | 1,462 | 542 | |
Repayments and other debt reductions (maturities longer than 90 days) | (6,198) | (16,419) | |
Capital contribution from GE to GE Capital | 0 | 0 | |
Net dispositions (purchases) of GE shares for treasury | 35 | (6) | |
Dividends paid to shareowners | (324) | (2,236) | |
All other financing activities | (835) | (741) | |
Cash from (used for) financing activities – continuing operations | (6,294) | (20,911) | |
Cash from (used for) financing activities – discontinued operations | (42) | (3) | |
Cash from (used for) financing activities | (6,336) | (20,913) | |
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | 1 | (285) | |
Increase (decrease) in cash, cash equivalents and restricted cash | (2,986) | (16,436) | |
Cash, cash equivalents and restricted cash at beginning of year | 35,548 | 44,724 | |
Cash, cash equivalents and restricted cash at June 30 | 32,562 | 28,288 | |
Less cash, cash equivalents and restricted cash of discontinued operations at June 30 | 594 | 744 | |
Cash, cash equivalents and restricted cash of continuing operations at June 30 | 31,968 | 27,545 | |
Financial Services (GE Capital) | |||
Cash flows – operating activities | |||
Net earnings (loss) | 547 | (1,821) | |
(Earnings) loss from discontinued operations | (273) | 1,618 | |
Adjustments to reconcile net earnings (loss) to cash provided from operating activities | |||
Depreciation and amortization of property, plant and equipment (Note 7) | 1,002 | 1,086 | |
Amortization of intangible assets (Note 8) | 31 | 30 | |
Goodwill impairments (Note 8) | 0 | 0 | |
(Earnings) loss from continuing operations retained by GE Capital | [1] | 0 | 0 |
(Gains) losses on purchases and sales of business interests | 0 | 0 | |
Principal pension plans cost (Note 13) | 0 | 0 | |
Principal pension plans employer contributions | 0 | 0 | |
Other postretirement benefit plans (net) | (1) | (12) | |
Provision (benefit) for income taxes | (139) | (122) | |
Cash recovered (paid) during the year for income taxes | (97) | (83) | |
Decrease (increase) in contract and other deferred assets | 0 | 0 | |
Decrease (increase) in GE current receivables | 0 | 0 | |
Decrease (increase) in inventories | 0 | 0 | |
Increase (decrease) in accounts payable | (1) | (85) | |
Increase (decrease) in GE progress collections | 0 | 0 | |
All other operating activities | 211 | (767) | |
Cash from (used for) operating activities – continuing operations | 1,279 | (154) | |
Cash from (used for) operating activities – discontinued operations | (1,702) | (293) | |
Cash from (used for) operating activities | (423) | (447) | |
Cash flows – investing activities | |||
Additions to property, plant and equipment | (1,984) | (1,732) | |
Dispositions of property, plant and equipment | 1,645 | 1,439 | |
Additions to internal-use software | (4) | (11) | |
Net decrease (increase) in financing receivables | 2,067 | 5,451 | |
Proceeds from sale of discontinued operations | 0 | 29 | |
Proceeds from principal business dispositions | 417 | 0 | |
Net cash from (payments for) principal businesses purchased | 0 | 0 | |
Capital contribution from GE to GE Capital | 0 | 0 | |
All other investing activities | (1,280) | 529 | |
Cash from (used for) investing activities – continuing operations | 861 | 5,705 | |
Cash from (used for) investing activities – discontinued operations | 1,764 | 151 | |
Cash from (used for) investing activities | 2,625 | 5,856 | |
Cash flows – financing activities | |||
Net increase (decrease) in borrowings (maturities of 90 days or less) | (656) | (1,593) | |
Newly issued debt (maturities longer than 90 days) | 1,053 | 394 | |
Repayments and other debt reductions (maturities longer than 90 days) | (5,840) | (15,394) | |
Capital contribution from GE to GE Capital | 1,500 | 0 | |
Net dispositions (purchases) of GE shares for treasury | 0 | 0 | |
Dividends paid to shareowners | (225) | (147) | |
All other financing activities | (561) | (9) | |
Cash from (used for) financing activities – continuing operations | (4,728) | (16,749) | |
Cash from (used for) financing activities – discontinued operations | (1) | 0 | |
Cash from (used for) financing activities | (4,729) | (16,749) | |
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | 9 | (79) | |
Increase (decrease) in cash, cash equivalents and restricted cash | (2,518) | (11,419) | |
Cash, cash equivalents and restricted cash at beginning of year | 15,020 | 25,902 | |
Cash, cash equivalents and restricted cash at June 30 | 12,502 | 14,483 | |
Less cash, cash equivalents and restricted cash of discontinued operations at June 30 | 590 | 615 | |
Cash, cash equivalents and restricted cash of continuing operations at June 30 | 11,913 | 13,868 | |
GE | |||
Cash flows – operating activities | |||
Net earnings (loss) | [2] | 3,522 | (664) |
(Earnings) loss from discontinued operations | [2] | (2,823) | 1,504 |
Adjustments to reconcile net earnings (loss) to cash provided from operating activities | |||
Depreciation and amortization of property, plant and equipment (Note 7) | [2] | 1,478 | 1,540 |
Amortization of intangible assets (Note 8) | [2] | 886 | 1,119 |
Goodwill impairments (Note 8) | [2] | 744 | 0 |
(Earnings) loss from continuing operations retained by GE Capital | [1],[2] | (46) | 422 |
(Gains) losses on purchases and sales of business interests | [2] | (54) | (300) |
Principal pension plans cost (Note 13) | [2] | 1,693 | 2,094 |
Principal pension plans employer contributions | [2] | (133) | (1,042) |
Other postretirement benefit plans (net) | [2] | (547) | (658) |
Provision (benefit) for income taxes | [2] | 213 | 576 |
Cash recovered (paid) during the year for income taxes | [2] | (1,148) | (854) |
Decrease (increase) in contract and other deferred assets | [2] | (502) | (645) |
Decrease (increase) in GE current receivables | [2] | (1,484) | (64) |
Decrease (increase) in inventories | [2] | (2,130) | (1,512) |
Increase (decrease) in accounts payable | [2] | 414 | 207 |
Increase (decrease) in GE progress collections | [2] | 440 | (889) |
All other operating activities | [2] | (1,364) | (1,684) |
Cash from (used for) operating activities – continuing operations | [2] | (842) | (850) |
Cash from (used for) operating activities – discontinued operations | [2] | (375) | 76 |
Cash from (used for) operating activities | [2] | (1,217) | (773) |
Cash flows – investing activities | |||
Additions to property, plant and equipment | [2] | (1,684) | (1,595) |
Dispositions of property, plant and equipment | [2] | 392 | 332 |
Additions to internal-use software | [2] | (163) | (169) |
Net decrease (increase) in financing receivables | [2] | 0 | 0 |
Proceeds from sale of discontinued operations | [2] | 2,827 | 0 |
Proceeds from principal business dispositions | [2] | 1,017 | 2,361 |
Net cash from (payments for) principal businesses purchased | [2] | (417) | 0 |
Capital contribution from GE to GE Capital | [2] | (1,500) | 0 |
All other investing activities | [2] | 1,557 | (882) |
Cash from (used for) investing activities – continuing operations | [2] | 2,029 | 47 |
Cash from (used for) investing activities – discontinued operations | [2] | 246 | (56) |
Cash from (used for) investing activities | [2] | 2,275 | (9) |
Cash flows – financing activities | |||
Net increase (decrease) in borrowings (maturities of 90 days or less) | [2] | (1,101) | (1,173) |
Newly issued debt (maturities longer than 90 days) | [2] | 409 | 1,058 |
Repayments and other debt reductions (maturities longer than 90 days) | [2] | (358) | (1,085) |
Capital contribution from GE to GE Capital | [2] | 0 | 0 |
Net dispositions (purchases) of GE shares for treasury | [2] | 35 | (6) |
Dividends paid to shareowners | [2] | (175) | (2,089) |
All other financing activities | [2] | (287) | (732) |
Cash from (used for) financing activities – continuing operations | [2] | (1,477) | (4,026) |
Cash from (used for) financing activities – discontinued operations | [2] | (41) | (3) |
Cash from (used for) financing activities | [2] | (1,518) | (4,028) |
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | [2] | (8) | (206) |
Increase (decrease) in cash, cash equivalents and restricted cash | [2] | (468) | (5,017) |
Cash, cash equivalents and restricted cash at beginning of year | [2] | 20,528 | 18,822 |
Cash, cash equivalents and restricted cash at June 30 | [2] | 20,060 | 13,805 |
Less cash, cash equivalents and restricted cash of discontinued operations at June 30 | [2] | 5 | 129 |
Cash, cash equivalents and restricted cash of continuing operations at June 30 | [2] | $ 20,055 | $ 13,676 |
[1] | Represents GE Capital earnings (loss) from continuing operations attributable to the Company. | ||
[2] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements represent the consolidation of General Electric Company (the Company) and all companies that we directly or indirectly control, either through majority ownership or otherwise. As used in these financial statements, “GE” represents the adding together of all affiliated companies except GE Capital (GE Capital or Financial Services), whose continuing operations are presented on a one-line basis; GE Capital represents the adding together of all affiliates of GE Capital with the effects of transactions among such affiliates eliminated; and “Consolidated” represents the adding together of GE and GE Capital with the effects of transactions between the two eliminated. The consolidated financial statements and notes thereto are unaudited. These statements include all adjustments that we considered necessary to present a fair statement of our results of operations, financial position and cash flows. The results reported in these consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. These consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our consolidated financial statements of our Annual Report on Form 10-K for the year ended December 31, 2018 . We have reclassified certain prior-period amounts to conform to the current-period presentation. Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in millions. Unless otherwise indicated, information in these notes to the consolidated financial statements relates to continuing operations. Our significant accounting policies are described in Note 1 to the consolidated financial statements of our aforementioned Annual Report. We include herein certain updates to those policies. Cash, cash equivalents and restricted cash. Debt securities and money market instruments with original maturities of three months or less are included in cash, cash equivalents and restricted cash unless designated as available-for-sale and classified as investment securities. The balance includes restricted cash of $716 million and $492 million at June 30, 2019 and December 31, 2018, respectively, primarily comprising collateral for receivables sold and funds restricted in connection with certain ongoing litigation matters. LEASE ACCOUNTING. We determine if an arrangement is a lease or a service contract at inception. Where an arrangement is a lease we determine if it is an operating lease or a finance lease. Subsequently, if the arrangement is modified we reevaluate our classification. Lessee. At lease commencement, we record a lease liability and corresponding right-of-use (ROU) asset. Lease liabilities represent the present value of our future lease payments over the expected lease term which includes options to extend or terminate the lease when it is reasonably certain those options will be exercised. We have elected to include lease and non-lease components in determining our lease liability for all leased assets except our vehicle leases. Non-lease components are generally services that the lessor performs for the Company associated with the leased asset. For those leases with payments based on an index, the lease liability is determined using the index at lease commencement. Lease payments based on increases in the index subsequent to lease commencement are recognized as variable lease expense as they occur. The present value of our lease liability is determined using our incremental collateralized borrowing rate at lease inception. ROU assets represent our right to control the use of the leased asset during the lease and are recognized in an amount equal to the lease liability. Over the lease term we use the effective interest rate method to account for the lease liability as lease payments are made and the ROU asset is amortized to earnings in a manner that results in straight-line expense recognition. A ROU asset and lease liability is not recognized for leases with an initial term of 12 months or less and we recognize lease expense for these leases on a straight-line basis over the lease term. Lessor. Equipment leased to others under operating leases are included in "Property, plant and equipment" and leases classified as finance leases are included in "Financing receivables" on our consolidated Statement of Financial Position. Refer to Notes 5 and 7 for additional information. ACCOUNTING CHANGES. On January 1, 2019, we adopted ASU No. 2016-02, Leases . Upon adoption, we recorded a $317 million increase to retained earnings, primarily attributable to the release of deferred gains on sale-lease back transactions. Our right-of-use assets and lease liabilities for operating leases excluding discontinued operations at adoption were $ 4,116 million and $ 4,303 million, respectively. After the adoption date, cash collections of principal on financing leases, will be classified as Cash from operating activities in our consolidated Statement of Cash Flows. Previously, such flows were classified as Cash from investing activities. On January 1, 2019, we adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The ASU requires certain changes to the presentation of hedge accounting in the financial statements and some new or modified disclosures. The ASU also simplifies the application of hedge accounting and expands the strategies that qualify for hedge accounting. Upon adoption, we recorded an increase to retained earnings and a decrease to borrowings of $52 million |
BUSINESSES HELD FOR SALE AND DI
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS | NOTE 2. BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE. On June 30, 2019, we signed an agreement to sell our high-speed Reciprocating Compression business within our Oil & Gas segment and recorded a pre-tax loss of $160 million in the caption “Other income” in our consolidated Statement of Earnings (Loss). We expect to close the transaction in the second half of 2019. On February 25, 2019, we announced an agreement to sell our BioPharma business within our Healthcare segment to Danaher Corporation for total consideration of approximately $ 21,400 million . As of the second quarter of 2019, we had assets of $8,429 million (including goodwill of $5,523 ) and liabilities of $1,182 million for this business classified as held for sale. We expect to complete the sale of the business in the fourth quarter of 2019. On November 13, 2017, the Company announced its intention to exit approximately $20 billion of assets over the next one to two years . Since this announcement, GE has classified various businesses across our Power, Aviation, and Healthcare segments, and Corporate as held for sale. In the first half of 2019, we closed certain of these transactions within Corporate and our Power and Aviation segments for total net proceeds of $ 1,049 million, recognized a pre-tax gain of $ 217 million in the caption “Other income” in our consolidated Statement of Earnings (Loss) and liquidated $ 548 million of our previously recorded valuation allowance. These transactions are subject to customary working capital and other post-close adjustments. As of June 30, 2019, we have closed the sale of substantially all of these assets in accordance with the plan. While we previously announced an orderly separation of our ownership of BHGE over time, this business has not met the accounting criteria for held for sale classification as of June 30, 2019. That classification will depend on the nature and timing of the disposal transactions. ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE (In millions) June 30, 2019 December 31, 2018 Current receivables $ 512 $ 184 Inventories 784 529 Property, plant, and equipment – net and Operating leases 895 423 Goodwill and Other intangible assets - net 6,344 884 Valuation allowance (647 ) (1,013 ) Deferred tax asset 880 — Other assets 438 623 Assets of businesses held for sale $ 9,206 $ 1,630 Accounts payable & Progress collections and deferred income $ 850 $ 428 Non-current compensation and benefits 367 152 Other liabilities 261 128 Liabilities of businesses held for sale $ 1,478 $ 708 DISCONTINUED OPERATIONS . Discontinued operations primarily relate to our Transportation segment and certain financial services businesses. On February 25, 2019, we completed the spin-off and subsequent merger of our Transportation business with Wabtec, a U.S. rail equipment manufacturer. In the transaction, GE shareholders received shares of Wabtec common stock representing an approximate 24.3% ownership interest in Wabtec common stock. GE received $2,827 million in cash (net of certain deal related costs) as well as shares of Wabtec common stock and Wabtec non-voting convertible preferred stock that, together, represent approximately 24.9% ownership interest in Wabtec. In addition, GE is entitled to additional cash consideration up to $470 million for tax benefits that Wabtec realizes from the transaction. We reclassified our Transportation segment to discontinued operations in the first quarter of 2019. As part of the transaction, we recorded a gain of $3,471 million ( $2,508 million after-tax) in discontinued operations and a net after-tax decrease of $852 million in additional paid in capital in connection with the spin-off of approximately 49.4% of Transportation to our shareholders. The fair value of our interest in Wabtec’s common and preferred shares was $3,513 million based on the opening share price of $73.45 at the date of the transaction and was recorded in the caption “Investment securities” in our consolidated Statement of Financial Position. Discontinued operations for our financial services businesses primarily relate to the GE Capital Exit Plan (our plan announced in 2015 to reduce the size of our financial services businesses) and were previously reported in the Capital segment. These discontinued operations primarily comprise residual assets and liabilities related to our exited U.S. mortgage business (WMC), our mortgage portfolio in Poland, and trailing liabilities associated with the sale of our GE Capital businesses. In January 2019, we announced an agreement in principle with the United States to settle the investigation by the U.S. Department of Justice (DOJ) regarding potential violations of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) by WMC and GE Capital, and in April 2019, the parties entered into a definitive settlement agreement. Under the agreement, which concludes this investigation, GE, without admitting liability or wrongdoing, paid the United States a civil penalty of $1,500 million . In June 2019, GE Capital recorded in the caption "Earnings (loss) from discontinued operations, net of taxes" in our consolidated Statement of Earnings (Loss), $332 million of tax benefits and $46 million of net interest benefits due to a decrease in our balance of unrecognized tax benefits. See Note 14 for further information. Results of operations, financial position and cash flows for these businesses are reported as discontinued operations for all periods pr esented. RESULTS OF DISCONTINUED OPERATIONS (In millions) Three months ended June 30 Six months ended June 30 2019 2018 2019 2018 Sales of goods and services $ — $ 942 $ 549 $ 1,814 GE Capital revenues and other income (loss) (48 ) 4 (9 ) (1,468 ) Cost of goods and services sold — (675 ) (478 ) (1,290 ) Other costs and expenses (15 ) (332 ) (99 ) (556 ) Earnings (loss) of discontinued operations before income taxes $ (64 ) $ (60 ) $ (37 ) $ (1,499 ) Benefit (provision) for income taxes 295 (3 ) 308 (7 ) Earnings (loss) of discontinued operations, net of taxes $ 231 $ (63 ) $ 270 $ (1,507 ) Gain (loss) on disposal before income taxes $ — $ — $ 3,517 $ 4 Benefit (provision) for income taxes — — (964 ) (1 ) Gain (loss) on disposal, net of taxes $ — $ — $ 2,553 $ 3 Earnings (loss) from discontinued operations, net of taxes $ 231 $ (63 ) $ 2,823 $ (1,504 ) Gains (loss) on disposals, net of taxes - Transportation and other Industrial — — 2,508 — Gains (loss) on disposals, net of taxes - Capital — — 45 3 Earnings (loss) from discontinued operations, net of taxes - Transportation and other Industrial (7 ) 3 2,550 115 Earnings (loss) from discontinued operations, net of taxes - Capital 238 (66 ) 273 (1,618 ) ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS (In millions) June 30, 2019 December 31, 2018 Cash, cash equivalents and restricted cash $ 594 $ 701 Investment securities 206 195 Current receivables 84 389 Inventories — 832 Financing receivables held for sale 2,599 2,745 Property, plant and equipment - net and Operating leases 147 910 Goodwill and intangible assets - net — 1,146 Deferred income taxes 346 1,175 All other assets 215 1,163 Assets of discontinued operations $ 4,191 $ 9,257 Accounts payable and Progress collections and deferred income $ 31 $ 1,248 Operating lease liabilities 227 — Other GE current liabilities 98 590 All other liabilities 27 1,909 Liabilities of discontinued operations $ 382 $ 3,747 Assets and liabilities of discontinued operations included $4,573 million of assets and $1,871 million of liabilities, respectively, related to our Transportation business as of December 31, 2018, which we classified as discontinued operations in the first quarter of 2019. Included within all other liabilities of discontinued operations at June 30, 2019 and December 31, 2018 are intercompany tax receivables in the amount of $ 804 million and $1,141 million , respectively, primarily related to the financial services businesses that were part of the GE Capital Exit Plan, that are offset within all other liabilities of consolidated GE. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | NOTE 3. INVESTMENT SECURITIES All of our debt securities are classified as available-for-sale and substantially all are investment-grade debt securities supporting obligations to annuitants and policyholders in our run-off insurance operations. Changes in fair value of our debt securities are recorded to other comprehensive income. All of our equity securities have readily determinable fair values and changes in fair value are recorded to earnings. June 30, 2019 December 31, 2018 (In millions) Amortized Gross Gross Estimated Amortized Gross Gross Estimated Debt U.S. corporate $ 22,663 $ 3,866 $ (26 ) $ 26,504 $ 21,306 $ 2,257 $ (357 ) $ 23,206 Non-U.S. corporate 2,186 187 — 2,373 1,906 53 (76 ) 1,883 State and municipal 3,199 572 (24 ) 3,748 3,320 367 (54 ) 3,633 Mortgage and asset-backed 3,048 128 (4 ) 3,172 3,325 51 (54 ) 3,322 Government and agencies 1,696 130 — 1,825 1,603 63 (20 ) 1,645 Equity 1,761 — — 1,761 146 — — 146 Total $ 34,554 $ 4,884 $ (55 ) $ 39,383 $ 31,605 $ 2,792 $ (561 ) $ 33,835 At June 30, 2019 estimated fair values have increased since December 31, 2018 primarily due to decreases in market yields and our equity interest in Wabtec that was received as consideration from the merger of our Transportation business with Wabtec. On May 6, 2019, we completed an underwritten secondary offering in which we sold 25.3 million shares of Wabtec common stock resulting in proceeds of $1,799 million . After the sale, our ownership percentage is approximately 11.8% . This interest is subject to certain trading restrictions and must be sold before the third anniversary of the transaction closing date. See Note 2 for further information. Although we generally do not have the intent to sell any specific debt securities at the end of the period, in the ordinary course of managing our debt 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. Proceeds from investment securities sales and early redemptions by issuers totaled $2,925 million and $385 million in the three months ended and $4,346 million and $706 million for the in the six months ended June 30, 2019 and 2018, respectively. Gross realized gains on investment securities were $33 million and $26 million and gross realized losses and impairments were $(67) million and $(3) million in the three months ended June 30, 2019 and 2018, respectively. Gross realized gains on investment securities were $76 million and $39 million and gross realized losses and impairments were $(107) million and $(3) million in the six months ended June 30, 2019 and 2018, respectively. Net unrealized gains (losses) recorded to earnings for equity securities were $(60) million and $293 million for the three months ended and $(41) million and $263 million for the six months ended June 30, 2019 and 2018, respectively . Gross unrealized losses of $(13) million and $(42) million are associated with debt securities with a fair value of $846 million and $929 million that have been in a loss position for less than 12 months and 12 months or more, respectively, at June 30, 2019 . Gross unrealized losses of $(310) million and $(251) million are associated with debt securities with a fair value of $7,231 million and $3,856 million that have been in a loss position for less than 12 months and 12 months or more, respectively, at December 31, 2018. Unrealized losses are not indicative of the amount of credit loss that would be recognized and we presently do not intend to sell these debt securities until anticipated recovery of our amortized cost. 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 $ 410 $ 415 After one year through five years 3,000 3,153 After five years through ten years 6,565 7,429 After ten years 19,769 23,453 We expect actual maturities to differ from contractual maturities because borrowers have the right to call or prepay certain obligations. Substantially all of our investment securities are classified within Level 2 as their valuation is determined based on significant observable inputs. Investments with a fair value of $ 4,415 million and $4,301 million were classified within Level 3 as significant inputs to the valuation model are unobservable at June 30, 2019 and December 31, 2018, respectively. During the six months ended June 30, 2019 and 2018, there were no significant transfers into or out of Level 3. In addition to the investment securities described above, we hold $1,239 million and $1,085 million of equity securities without readily determinable fair value at June 30, 2019 and December 31, 2018, respectively that are classified within "All other assets" in our consolidated Statement of Financial Position. We recognize these assets at cost and have recorded insignificant fair value increases, net of impairment, for the three and six months ended June 30, 2019 and 2018, respectively and cumulatively, based on observable transactions. |
CURRENT AND LONG-TERM RECEIVABL
CURRENT AND LONG-TERM RECEIVABLES | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
CURRENT AND LONG-TERM RECEIVABLES | NOTE 4. CURRENT AND LONG-TERM RECEIVABLES CURRENT RECEIVABLES Consolidated GE (In millions) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Customer receivables $ 15,998 $ 15,716 $ 12,371 $ 11,330 Sundry receivables 5,265 4,765 5,600 4,763 Allowance for losses (1,111 ) (997 ) (1,106 ) (989 ) Total current receivables $ 20,152 $ 19,484 $ 16,864 $ 15,103 Current sundry receivables include supplier advances, revenue sharing programs receivables, other non-income based tax receivables, certain intercompany balances that eliminate upon consolidation and deferred purchase price. The deferred purchase price represents our retained risk with respect to current customer receivables sold to third parties through one of the Receivable Facilities. The balance of the deferred purchase price held by GE Capital at June 30, 2019 and December 31, 2018, was $ 385 million and $ 468 million, respectively. Sales of GE current customer receivables. During any given period, GE sells customer receivables to manage short-term liquidity and credit exposure. These sales to GE Capital or third parties are made on arm's length terms and any discount related to time value of money is recognized by GE when the customer receivables are sold. During the six months ended June 30, 2019 and 2018, GE sold approximately 48% and 56 % ( 62% and 70% excluding Oil & Gas), respectively, of its customer receivables to GE Capital or third parties. Activity related to customer receivables sold by GE is as follows: 2019 2018 Six months ended June 30 (In millions) GE Capital (a) Third Parties GE Capital (a) Third Parties Balance at January 1 $ 4,386 $ 7,885 $ 9,877 $ 5,718 GE sales to GE Capital 19,247 — 24,430 — GE sales to third parties — 2,079 — 2,255 GE Capital sales to third parties (13,836 ) 13,836 (14,201 ) 14,201 Collections and other (6,378 ) (16,968 ) (14,011 ) (16,184 ) Reclassification from long-term customer receivables 209 — 415 — Balance at June 30 $ 3,628 $ 6,832 $ 6,510 $ 5,989 (a) As of June 30, 2019 and 2018, $ 1,076 million and $ 2,283 million , respectively, of the current receivables purchased and retained by GE Capital, had been sold by GE to GE Capital with recourse (i.e., GE retains all or some risk of default). The effect on GE CFOA of claims by GE Capital on receivables sold with recourse has been insignificant for the six months ended June 30, 2019 and 2018. When GE sells customer receivables to GE Capital or third parties it accelerates the receipt of cash that would otherwise have been collected from customers. In any given period, the amount of cash received from sales of customer receivables compared to the cash GE would have otherwise collected had those customer receivables not been sold represents the cash generated or used in the period relating to this activity. Sales to GE Capital impact GE CFOA, while sales to third parties impact both GE and consolidated CFOA. The impact of selling fewer customer receivables to GE Capital, including those subsequently sold by GE Capital to third parties, decreased GE’s CFOA by $1,434 million and $3,027 million in the six months ended June 30, 2019 and 2018, respectively. LONG-TERM RECEIVABLES. In certain circumstances, GE provides customers, primarily within our Power, Renewable Energy and Aviation businesses, with extended payment terms for the purchase of new equipment, purchases of upgrades and spare parts for our long-term service agreements. These long-term customer receivables are initially recorded at present value and have an average remaining duration of approximately 3 years and are included in “All other assets” in the consolidated Statement of Financial Position. Consolidated GE (In millions) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Long-term customer receivables $ 1,222 $ 1,444 $ 623 $ 561 Long-term sundry receivables 1,822 1,410 2,197 1,750 Allowance for losses (193 ) (202 ) (193 ) (202 ) Total long-term receivables $ 2,851 $ 2,652 $ 2,628 $ 2,109 Long-term sundry receivables include supplier advances, revenue sharing programs receivables, other non-income based tax receivables and certain intercompany balances that eliminate upon consolidation. Sales of GE long-term customer receivables. GE may sell long-term customer receivables to manage liquidity and credit exposure. Through the second quarter of 2018, these sales were primarily made to GE Capital, while subsequently, GE has sold an insignificant amount to third parties to transfer economic risk during both the six months ended June 30, 2019 and 2018. Activity related to long-term customer receivables purchased by GE Capital is as follows: 2019 2018 Six months ended June 30 (In millions) GE Capital (a) GE Capital (a) Balance at January 1 $ 883 $ 1,947 GE sales to GE Capital — 112 Sales, collections, accretion and other (75 ) (170 ) Reclassification to current customer receivables (209 ) (415 ) Balance at June 30 $ 599 $ 1,475 (a) As of June 30, 2019 and 2018, $430 million and $885 million, respectively, of long-term customer receivables purchased and retained by GE Capital, had been sold by GE to GE Capital with recourse (i.e., GE retains all or some risk of default). The effect on GE CFOA of claims by GE Capital on receivables sold with recourse has been insignificant for the six months ended June 30, 2019 and 2018. Similar to sales of current customer receivables, sales of long-term customer receivables can result in cash generation or use in our Statements of Cash Flows. The impact from the sale of long-term customer receivables to GE Capital, including those subsequently sold by GE Capital to third parties, decreased GE’s CFOA by $309 million and $520 million in the six months ended June 30, 2019 and 2018, respectively. UNCONSOLIDATED RECEIVABLES FACILITIES . GE Capital has two revolving Receivables Facilities, with a total program size of $5,100 million , under which customer receivables purchased from GE are sold to third parties. In one of the facilities, upon the sale of receivables, we receive proceeds of cash and deferred purchase price and the Company’s remaining risk with respect to the sold receivables is limited to the balance of the deferred purchase price. In the other facility, upon the sale of receivables, we receive proceeds of cash only and therefore the Company has no remaining risk with respect to the sold receivables. Activity related to these facilities is included in “GE Capital sales to third parties” line in the table above and is as follows: Six months ended June 30 (In millions) 2019 2018 Customer receivables sold to receivables facilities $ 10,786 $ 11,355 Total cash purchase price for customer receivables 10,495 8,584 Cash collections re-invested to purchase customer receivables 8,830 7,390 Non-cash increases to deferred purchase price $ 137 $ 2,716 Cash payments received on deferred purchase price 220 2,691 CONSOLIDATED SECURITIZATION ENTITIES . GE Capital consolidates three variable interest entities (VIEs) that purchased customer receivables and long-term customer receivables from GE. At June 30, 2019 and December 31, 2018 these VIEs held current customer receivables of $1,863 million and $2,141 million and long-term customer receivables of $512 million and $678 million , respectively that were funded through the issuance of non-recourse debt to third parties. At June 30, 2019 and December 31, 2018, the outstanding debt under their respective debt facilities was $1,423 million and $1,875 million |
FINANCING RECEIVABLES AND ALLOW
FINANCING RECEIVABLES AND ALLOWANCES | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES AND ALLOWANCES | NOTE 5. FINANCING RECEIVABLES AND ALLOWANCES Consolidated GE Capital (In millions) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Loans, net of deferred income $ 1,344 $ 5,118 $ 5,908 $ 10,834 Investment in financing leases, net of deferred income 2,139 2,639 2,316 2,822 3,483 7,757 8,224 13,656 Allowance for losses (47 ) (58 ) (14 ) (28 ) Financing receivables – net $ 3,436 $ 7,699 $ 8,210 $ 13,628 Consolidated finance lease income was $48 million and $61 million in the three months ended June 30, 2019 and 2018, respectively, and $97 million and $134 million for the six months ended June 30, 2019 and 2018, respectively. In the second quarter of 2019, we classified $3,615 million of GE Capital Aviation Services (GECAS) financing receivables as held for sale within "All other assets" in our consolidated Statement of Financial Position, as we no longer intend to hold these receivables for the foreseeable future. There were no write-offs on financing receivables to reduce their carrying value to the lower of cost or fair value, less cost to sell. We manage our GE Capital financing receivables portfolio using delinquency and nonaccrual data as key performance indicators. At June 30, 2019, 3.0% , 2.2% and 3.6% of financing receivables were over 30 days past due, over 90 days past due and on nonaccrual, respectively, with the vast majority of nonaccrual financing receivables secured by collateral. At December 31, 2018, 2.4% , 1.8% and 0.9% of financing receivables were over 30 days past due, over 90 days past due and on nonaccrual, respectively. The increase in these key performance indicators at June 30, 2019 is primarily a result of transferring financing receivables to held for sale. GE Capital financing receivables that comprise receivables purchased from GE are reclassified to either "Current receivables" or "All other assets" in the consolidated Statement of Financial Position. To the extent these receivables are purchased with full or limited recourse, they are excluded from the delinquency and nonaccrual data above. See Note 4 for further information. The portfolio also includes $575 million and $688 million of financing receivables that are guaranteed by GE, of which $105 million and $96 million of these loans are on nonaccrual at the consolidated level at June 30, 2019 and December 31, 2018, respectively. Additional allowance for loan losses are recorded at GE and on the consolidated level for these guaranteed loans. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 6. INVENTORIES (In millions) June 30, 2019 December 31, 2018 Raw materials and work in process $ 10,854 $ 10,102 Finished goods 8,928 8,086 Unbilled shipments 189 201 Total inventories $ 19,971 $ 18,389 |
PROPERTY, PLANT AND EQUIPMENT A
PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES | NOTE 7. PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES PROPERTY, PLANT AND EQUIPMENT (In millions) June 30, 2019 December 31, 2018 Original cost $ 85,962 $ 85,476 Less accumulated depreciation and amortization (36,019 ) (35,637 ) Property, plant and equipment – net $ 49,943 $ 49,839 Consolidated depreciation and amortization on property, plant and equipment was $2,482 million and $2,640 million for the six months ended June 30, 2019 and 2018 , respectively. Operating lease income on our equipment leased to others was $1,181 million and $1,210 million for the three months ended June 30, 2019 and 2018, respectively, and comprises fixed lease income of $748 million and $829 million and variable lease income of $432 million and $381 million , respectively. Operating lease income on our equipment leased to others was $2,320 million and $2,392 million for the six months ended June 30, 2019 and 2018, respectively, and comprises of fixed lease income of $1,524 million and $1,651 million and variable lease income of $796 million and $740 million , respectively. Operating Lease Assets and Liabilities. Our ROU assets and lease liabilities for operating leases were $ 3,860 million and $ 4,074 million , respectively, as of June 30, 2019. Substantially all of our operating leases have remaining lease terms of 12 years or less , some of which may include options to extend. OPERATING LEASE EXPENSE Three months ended June 30 Six months ended June 30 (In millions) 2019 2018 2019 2018 Long-term (fixed) $ 256 $ 285 $ 529 $ 592 Long-term (variable) 35 57 90 120 Short-term 186 177 432 338 Total operating lease expense $ 476 $ 519 $ 1,052 $ 1,050 MATURITY OF LEASE LIABILITIES (In millions) Total 2019 (excluding six months ended June 30, 2019) $ 540 2020 949 2021 763 2022 631 2023 500 Thereafter 1,534 Total undiscounted lease payments 4,917 Less: imputed interest (843 ) Total lease liability as of June 30, 2019 $ 4,074 SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES (In millions) June 30, 2019 Operating cash flows used for operating leases $ 579 Right-of-use assets obtained in exchange for new lease liabilities $ 409 Weighted-average remaining lease term 7.2 years Weighted-average discount rate 5.0 % |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 8. GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL (In millions) January 1, 2019 Dispositions and classification to held for sale Impairments Currency exchange Balance at Power $ 139 $ — $ — $ 6 $ 145 Renewable Energy 4,730 — (744 ) 72 4,058 Aviation 9,839 — — 24 9,863 Healthcare 17,226 (5,523 ) — 32 11,735 Oil & Gas 24,455 (37 ) — 301 24,719 Capital 904 — — (26 ) 878 Corporate 1,438 — — (564 ) 874 Total $ 58,730 $ (5,560 ) $ (744 ) $ (153 ) $ 52,272 Goodwill balances decreased primarily as a result of transferring our BioPharma business within our Healthcare segment to held for sale and the goodwill impairment at our Grid Solutions equipment and services reporting unit within our Renewable Energy segment. In assessing the possibility that a reporting unit’s fair value has been reduced below its carrying amount due to the occurrence of events or circumstances between annual impairment testing dates, we consider all available evidence, including (i) the results of our impairment testing from the most recent testing date (in particular, the magnitude of the excess of fair value over carrying value observed), (ii) downward revisions to internal forecasts or decreases in market multiples (and the magnitude thereof), if any, and (iii) declines in market capitalization below book value (and the magnitude and duration of those declines), if any. In the second quarter of 2019, we reorganized our Grid Solutions reporting unit in our Power segment by separating our Grid Solutions software business from the Grid Solutions reporting unit. Our Grid Solutions software business was then moved into Corporate and combined with our Digital business. In addition, the remaining Grid Solutions reporting unit (now referred to as Grid Solutions equipment and services) was moved into our Renewable Energy segment as a separate reporting unit. As a result, we allocated goodwill between Grid Solutions software and the Grid Solutions equipment and services reporting unit based on the relative fair values of each business. This resulted in $1,618 million of goodwill transferring from our Power segment to our Renewable Energy segment and our Digital business within Corporate in the amounts of $744 million and $874 million , respectively. As a consequence of separating the two businesses, the Grid Solutions equipment and services reporting unit’s fair value was below its carrying value. Therefore, we conducted step two of the goodwill impairment test for this reporting unit using a current outlook. In performing the second step, we identified unrecognized intangible assets primarily related to internally developed technology and trade name. The combination of these unrecognized intangibles, adjustments to the carrying value of other assets and liabilities, and reduced reporting unit fair value calculated in step one, resulted in an implied fair value of goodwill below the carrying value of goodwill for the Grid Solutions equipment and services reporting unit. Therefore, we recorded a non-cash impairment loss of $744 million in the caption "Goodwill impairments" in our consolidated Statement of Earnings (Loss). After the impairment charge, there is no remaining goodwill associated with our Grid Solutions equipment and services reporting unit. In addition, in the second quarter of 2019 we performed a qualitative review of our reporting units in our Oil & Gas segment, our Additive reporting unit in our Aviation segment, and our Hydro reporting unit in our Renewable Energy segment. We did not identify any reporting units that required an interim impairment test. While the goodwill in our reporting units within our Oil & Gas segment is not currently impaired, the oil and gas markets continue to be volatile. While the long-term outlook for the industry remains strong, any future declines in macroeconomic or business conditions affecting these reporting units or sustained declines in BHGE’s share price in future periods could result in a goodwill impairment in one or more of our Oil & Gas reporting units. In addition, we will continue to measure our ability to meet our cash flow forecasts and to monitor the operating results of our Additive reporting unit, which could impact the fair value of this reporting unit in the future. In the fourth quarter of 2018, we recorded a goodwill impairment charge in our Hydro reporting unit and the recoverability of its remaining goodwill is reliant on the business achieving its turnaround plan which includes execution improvements on legacy projects and cost reductions in the near term. There can be no assurances that some or all of the $740 million goodwill balance within this reporting unit will not be impaired in future periods. Further, in the second quarter of 2019, a portion of goodwill recorded at Corporate associated with our Digital acquisitions that was previously allocated to our Oil & Gas, Renewable Energy, Aviation and Healthcare segments in purchase accounting and for goodwill testing purposes is reflected in these segments in the table above. OTHER INTANGIBLE ASSETS - NET (In millions) June 30, 2019 December 31, 2018 Intangible assets subject to amortization $ 14,412 $ 15,675 Indefinite-lived intangible assets 2,242 2,222 Total $ 16,653 $ 17,897 Indefinite-lived intangible assets comprise trademarks and trade names in our Oil & Gas segment. Intangible assets decreased in the first quarter of 2019, primarily as a result of amortization, and the transfer of BioPharma within our Healthcare segment to held for sale of $524 million . Consolidated amortization expense was $454 million and $547 million in the three months ended June 30, 2019 and 2018, and $ 916 million and $1,149 million in the six months ended June 30, 2019 and 2018 , respectively. |
REVENUES
REVENUES | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | NOTE 9. REVENUES The equipment and services revenues classification in the table below is consistent with our segment MD&A presentation. EQUIPMENT & SERVICES REVENUES Three months ended June 30 (In millions) 2019 2018 Equipment Services Total Equipment Services Total Power $ 1,463 $ 3,218 $ 4,681 $ 2,416 $ 3,845 $ 6,261 Renewable Energy 2,867 760 3,627 2,240 643 2,883 Aviation 3,033 4,844 7,877 2,909 4,610 7,519 Healthcare 2,838 2,095 4,934 2,812 2,166 4,978 Oil & Gas 2,361 3,592 5,953 2,189 3,366 5,554 Total Industrial Segment Revenues $ 12,561 $ 14,510 $ 27,071 $ 12,564 $ 14,631 $ 27,195 EQUIPMENT & SERVICES REVENUES Six months ended June 30 (In millions) 2019 2018 Equipment Services Total Equipment Services Total Power $ 3,039 $ 6,259 $ 9,298 $ 4,889 $ 7,319 $ 12,209 Renewable Energy 4,848 1,317 6,165 4,564 1,158 5,722 Aviation 6,146 9,685 15,831 5,448 9,183 14,631 Healthcare 5,492 4,125 9,616 5,419 4,261 9,680 Oil & Gas 4,630 6,940 11,569 4,417 6,522 10,939 Total Industrial Segment Revenues $ 24,155 $ 28,325 $ 52,479 $ 24,737 $ 28,444 $ 53,181 SUB-SEGMENT REVENUES Three months ended June 30 Six months ended June 30 (In millions) 2019 2018 2019 2018 Gas Power $ 3,248 $ 3,500 $ 6,510 $ 7,041 Power Portfolio 1,434 2,761 2,788 5,168 Power $ 4,681 $ 6,261 $ 9,298 $ 12,209 Onshore Wind $ 2,449 $ 1,336 $ 3,891 $ 2,596 Grid Solutions equipment and services 938 1,230 1,872 2,423 Hydro and Offshore Wind 239 317 402 703 Renewable Energy $ 3,627 $ 2,883 $ 6,165 $ 5,722 Commercial Engines & Services $ 5,848 $ 5,534 $ 11,797 $ 10,806 Military 976 1,073 2,013 2,044 Systems & Other 1,052 911 2,021 1,780 Aviation $ 7,877 $ 7,519 $ 15,831 $ 14,631 Healthcare Systems $ 3,589 $ 3,735 $ 7,020 $ 7,311 Life Sciences 1,345 1,244 2,595 2,369 Healthcare $ 4,934 $ 4,978 $ 9,616 $ 9,680 Turbomachinery & Process Solutions (TPS) $ 1,365 $ 1,391 $ 2,669 $ 2,839 Oilfield Services (OFS) 3,263 2,884 6,249 5,561 Oilfield Equipment (OFE) 693 617 1,428 1,281 Digital Solutions 632 662 1,223 1,258 Oil & Gas $ 5,953 $ 5,554 $ 11,569 $ 10,939 Total Industrial Segment Revenues $ 27,071 $ 27,195 $ 52,479 $ 53,181 Capital(a) 2,321 2,429 4,548 4,602 Corporate items and eliminations (561 ) (462 ) (910 ) (833 ) Consolidated Revenues $ 28,831 $ 29,162 $ 56,117 $ 56,950 (a) Substantially all of our revenues at GE Capital are outside of the scope of ASC 606. REMAINING PERFORMANCE OBLIGATION . As of June 30, 2019, the aggregate amount of the contracted revenues allocated to our unsatisfied (or partially unsatisfied) performance obligations was $251,443 million . We expect to recognize revenue as we satisfy our remaining performance obligations as follows: 1) equipment-related remaining performance obligation of $50,331 million of which 58% , 76% and 86% is expected to be satisfied within 1 , 2 and 5 years , respectively, and the remaining thereafter; and 2) services-related remaining performance obligation of $201,112 million of which 14% , 47% , 72% and 89% is expected to be recognized within 1 , 5 , 10 and 15 years , respectively, and the remaining thereafter. Contract modifications could affect both the timing to complete as well as the amount to be received as we fulfill the related remaining performance obligations. |
CONTRACT AND OTHER DEFERRED ASS
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME | 6 Months Ended |
Jun. 30, 2019 | |
Contractors [Abstract] | |
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME | NOTE 10. CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME Contract and other deferred assets decreased $55 million in the first half of 2019. Our long-term service agreements increased primarily due to revenues recognized of $5,676 million , offset by billings of $5,553 million and a net unfavorable change in estimated profitability of $80 million , primarily at Aviation. Our short-term and other service agreements increased due to the timing of revenue recognition ahead of billings primarily at Aviation. June 30, 2019 (In millions) Power Aviation Oil & Gas Renewable Energy Healthcare and Other Total Revenues in excess of billings $ 5,661 $ 4,980 $ 669 $ — $ — $ 11,310 Billings in excess of revenues (1,576 ) (3,175 ) (245 ) — — (4,997 ) Long-term service agreements 4,084 1,805 424 — — 6,314 Short-term and other service agreements 135 338 177 35 297 983 Equipment contract revenues 2,740 79 891 1,242 323 5,275 Total contract assets 6,959 2,222 1,493 1,278 620 12,571 Deferred inventory costs 909 374 129 1,463 338 3,213 Nonrecurring engineering costs 41 2,072 43 72 44 2,273 Customer advances and other — 1,119 — — — 1,119 Contract and other deferred assets $ 7,909 $ 5,787 $ 1,665 $ 2,813 $ 1,002 $ 19,176 December 31, 2018 (In millions) Revenues in excess of billings $ 5,368 $ 5,412 $ 703 $ — $ — $ 11,482 Billings in excess of revenues (1,693 ) (3,297 ) (187 ) — — (5,176 ) Long-term service agreements 3,675 2,115 516 — — 6,306 Short-term and other service agreements 99 272 182 45 251 850 Equipment contract revenues 2,829 80 902 1,129 384 5,324 Total contract assets 6,603 2,468 1,600 1,174 635 12,480 Deferred inventory costs 1,003 673 179 1,267 365 3,488 Nonrecurring engineering costs 43 1,916 22 85 51 2,117 Customer advances and other — 1,146 — — — 1,146 Contract and other deferred assets $ 7,650 $ 6,204 $ 1,800 $ 2,525 $ 1,052 $ 19,231 Progress collections represent cash received from customers under ordinary commercial payment terms in advance of delivery. Progress collections on equipment contracts primarily comprises milestone payments received from customer prior to the manufacture and delivery of customized equipment orders. Other progress collections primarily comprise down payments from customers to reserve production slots for standardized inventory orders such as advance payments from customers when they place orders for wind turbines and blades within our Renewable Energy segment and payments from airframers and airlines for install and spare engines, respectively, within our Aviation segment. Progress collections and deferred income increased $305 million in the first half of 2019 primarily due to milestone payments received primarily at Aviation and Oil & Gas. These increases were partially offset by the timing of revenue recognition in excess of new collections received, primarily at Power and Renewable Energy. Revenues recognized for contracts included in liability position at the beginning of the year were $8,370 million and $9,332 million for the six months ended June 30, 2019 and 2018, respectively . June 30, 2019 (In millions) Power Aviation Oil & Gas Renewable Energy Healthcare and Other Total Progress collections on equipment contracts $ 5,619 $ 93 $ 1,336 $ 1,136 $ — $ 8,184 Other progress collections 552 4,501 529 3,374 487 9,443 Total progress collections $ 6,171 $ 4,594 $ 1,865 $ 4,510 $ 487 $ 17,627 Deferred income 61 1,432 126 266 1,627 3,510 GE Progress collections and deferred income $ 6,231 $ 6,026 $ 1,991 $ 4,776 $ 2,113 $ 21,138 December 31, 2018 (In millions) Progress collections on equipment contracts $ 5,536 $ 114 $ 878 $ 1,415 $ — $ 7,943 Other progress collections 691 4,034 552 3,468 500 9,245 Total progress collections $ 6,227 $ 4,148 $ 1,430 $ 4,883 $ 500 $ 17,188 Deferred income 112 1,338 164 260 1,770 3,645 GE Progress collections and deferred income $ 6,339 $ 5,486 $ 1,594 $ 5,143 $ 2,271 $ 20,833 |
BORROWINGS
BORROWINGS | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 11. BORROWINGS (In millions) June 30, 2019 December 31, 2018 Short-term borrowings Commercial paper $ 3,002 $ 3,005 Current portion of long-term borrowings 804 103 Current portion of long-term borrowings assumed by GE 6,962 4,207 Other 1,749 2,084 Total GE short-term borrowings $ 12,518 $ 9,400 Current portion of long-term borrowings $ 3,743 $ 3,984 Intercompany payable to GE 2,393 2,684 Other 343 1,015 Total GE Capital short-term borrowings $ 6,479 $ 7,684 Eliminations (3,376 ) (4,262 ) Total short-term borrowings $ 15,620 $ 12,821 Long-term borrowings Senior notes $ 25,792 $ 26,564 Senior notes assumed by GE 25,171 29,218 Subordinated notes assumed by GE 2,839 2,836 Other 502 524 Total GE long-term borrowings $ 54,304 $ 59,143 Senior notes $ 33,468 $ 35,105 Subordinated notes 176 165 Intercompany payable to GE 18,830 19,828 Other 849 885 Total GE Capital long-term borrowings $ 53,324 $ 55,982 Eliminations (18,893 ) (19,892 ) Total long-term borrowings $ 88,735 $ 95,234 Non-recourse borrowings of consolidated securitization entities 1,423 1,875 Total borrowings $ 105,778 $ 109,930 At June 30, 2019 , the outstanding GE Capital borrowings that had been assumed by GE as part of the GE Capital Exit Plan was $34,972 million ( $6,962 million short term and $28,010 long term), for which GE has an offsetting Receivable from GE Capital of $21,223 million . The difference of $13,749 million ( $4,569 million in short-term borrowings and $9,180 million in long-term borrowings) represents the amount of borrowings GE Capital had funded with available cash to GE via intercompany loans in lieu of GE issuing borrowings externally. At June 30, 2019 , total GE borrowings of $45,599 million was comprised of GE-issued borrowings of $31,850 million (including $6,292 million of BHGE borrowings) and intercompany loans from GE Capital to GE of $13,749 million as described above. GE has provided a full and unconditional guarantee on the payment of the principal and interest on all tradable senior and subordinated outstanding long-term debt securities and all commercial paper issued or guaranteed by GE Capital. At June 30, 2019 , the Guarantee applies to $35,347 million of GE Capital debt. Non-recourse borrowings of consolidated securitization entities are primarily short term in nature. See Notes 4 and 18 for further information. See Note 17 for further information about borrowings and associated interest rate swaps. |
INSURANCE LIABILITIES AND ANNUI
INSURANCE LIABILITIES AND ANNUITY BENEFITS | 6 Months Ended |
Jun. 30, 2019 | |
Insurance [Abstract] | |
INSURANCE LIABILITIES AND ANNUITY BENEFITS | NOTE 12. INSURANCE LIABILITIES AND ANNUITY BENEFITS Insurance liabilities and annuity benefits comprise mainly obligations to annuitants and insureds in our run-off insurance activities. June 30, 2019 (In millions) Long-term care insurance contracts Structured settlement annuities & life insurance contracts Other Other adjustments(a) Total Future policy benefit reserves $ 16,118 $ 9,371 $ 166 $ 4,792 $ 30,447 Claim reserves 4,094 238 1,172 — 5,504 Investment contracts — 1,195 1,103 — 2,298 Unearned premiums and other 31 199 160 — 390 20,243 11,003 2,601 4,792 38,639 Eliminations — — (514 ) — (514 ) Total $ 20,243 $ 11,003 $ 2,087 $ 4,792 $ 38,125 December 31, 2018 (In millions) Future policy benefit reserves $ 16,029 $ 9,495 $ 169 $ 2,247 $ 27,940 Claim reserves 3,917 230 1,178 — 5,324 Investment contracts — 1,239 1,149 — 2,388 Unearned premiums and other 34 205 103 — 342 19,980 11,169 2,599 2,247 35,994 Eliminations — — (432 ) — (432 ) Total $ 19,980 $ 11,169 $ 2,167 $ 2,247 $ 35,562 (a) To the extent that unrealized gains on specific investment securities supporting our insurance contracts would result in a premium deficiency should those gains be realized, an increase in future policy benefit reserves is recorded, with an after-tax reduction of net unrealized gains recognized through "Accumulated other comprehensive income (loss)" in our consolidated Statement of Earnings (Loss). Claim reserves included incurred claims of $981 million and $1,004 million for the six months ended June 30, 2019 and 2018, respectively, of which insignificant amounts related to the recognition of adjustments to prior year claim reserves arising from our periodic reserve evaluation. Paid claims were $824 million and $904 million in the six months ended June 30, 2019 and 2018, respectively. Reinsurance recoverables are recorded when we cede insurance risk to third parties but are not relieved from our primary obligation to policyholders and cedents. These amounts, net of allowances, are included in the caption "Other GE Capital receivables" in our consolidated Statement of Financial Position, and amounted to $2,347 million and $2,271 million at June 30, 2019 and December 31, 2018, respectively. |
POSTRETIREMENT BENEFIT PLANS
POSTRETIREMENT BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
POSTRETIREMENT BENEFIT PLANS | NOTE 13. POSTRETIREMENT BENEFIT PLANS We sponsor a number of pension and retiree health and life insurance benefit plans. Principal pension plans are the GE Pension Plan and the GE Supplementary Pension Plan. Other pension plans include the U.S. and non-U.S. pension plans with pension assets or obligations greater than $50 million . Principal retiree benefit plans provide health and life insurance benefits to certain eligible participants and these participants share in the cost of the healthcare benefits. Smaller pension plans 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 June 30 Six months ended June 30 (In millions) 2019 2018 2019 2018 Service cost for benefits earned $ 160 $ 203 $ 318 $ 435 Prior service cost amortization 34 36 67 72 Expected return on plan assets (862 ) (820 ) (1,725 ) (1,640 ) Interest cost on benefit obligations 723 667 1,449 1,333 Net actuarial loss amortization 770 943 1,533 1,894 Curtailment loss — — 51 — Pension plans cost $ 825 $ 1,029 $ 1,693 $ 2,094 Curtailment loss in the six months ended June 30, 2019, results from the spin-off and subsequent merger of our Transportation segment with Wabtec which is included in "Earnings (loss) from discontinued operations" in our consolidated Statement of Earnings (Loss). Other pension plans Three months ended June 30 Six months ended June 30 (In millions) 2019 2018 2019 2018 Service cost for benefits earned $ 70 $ 99 $ 136 $ 194 Prior service cost (credit) amortization 1 (2 ) 1 (2 ) Expected return on plan assets (320 ) (359 ) (629 ) (717 ) Interest cost on benefit obligations 156 156 313 312 Net actuarial loss amortization 84 83 167 165 Settlement/curtailment loss (gain) 7 (6 ) 16 (6 ) Pension plans cost (income) $ (2 ) $ (29 ) $ 4 $ (54 ) Principal retiree benefit plans income was $ 30 million and $ 20 million for the three months ended June 30, 2019 and 2018, and $ 91 million and $ 41 million for the six months ended June 30, 2019 and 2018, respectively, which includes a curtailment gain of $ 33 million in 2019 resulting from the Transportation transaction. The components of net periodic benefit costs other than the service cost component are included in the caption "Non-operating benefit costs" in our consolidated Statement of Earnings (Loss). We also have a defined contribution plan for eligible U.S. employees that provides discretionary contributions. Defined contribution plan costs were $ 90 million and $ 99 million for the three months ended June 30, 2019 and 2018, respectively, and $ 191 million and $ 216 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 14. INCOME TAXES Our consolidated effective income tax rate was 7.4% and 30.0% during the six months ended June 30, 2019 and 2018, respectively. The rate for 2019 is lower than the U.S. statutory rate primarily due to favorable audit resolutions and U.S. business credits, partially offset by the cost of global activities, including the recently enacted base erosion and global intangible low tax income provisions and from a largely non-deductible goodwill impairment charge associated with our Grid Solutions equipment and services business within our Renewable Energy segment. The rate for 2018 was higher than the U.S. statutory rate primarily due to a change in deferred taxes resulting from the decision to execute an internal restructuring to separate the Healthcare business and the cost of the newly enacted base erosion and global intangible low tax income provisions in excess of the benefit from other global activities and dispositions taxed at a rate above the statutory rate. This was partially offset by an adjustment to decrease the 2018 six-month tax rate to be in line with the lower expected full-year rate and U.S. business credits. The Internal Revenue Service (IRS) is currently auditing our consolidated U.S. income tax returns for 2014-2015. In June 2019, the IRS completed the audit of our consolidated U.S. income tax returns for 2012-2013, which resulted in a decrease in our balance of "unrecognized tax benefits" (i.e., the aggregate tax effect of differences between tax return positions and the benefits recognized in our financial statements). The Company recognized a resulting non-cash continuing operations tax benefit of $378 million plus an additional net interest benefit of $107 million . Of these amounts, GE recorded $355 million of tax benefits and $98 million of net interest benefits and GE Capital recorded $23 million of tax benefits and $9 million of net interest benefits. GE Capital recorded an additional non-cash benefit in discontinued operations of $332 million of tax benefits and $46 million of net interest benefits. See Note 2 for further information. |
SHAREOWNERS_ EQUITY
SHAREOWNERS’ EQUITY | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
SHAREOWNERS’ EQUITY | NOTE 15. SHAREOWNERS’ EQUITY ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Three months ended June 30 Six months ended June 30 (In millions) 2019 2018 2019 2018 Beginning balance $ (16 ) $ (4 ) $ (39 ) $ (102 ) Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes of $(23), $(17), $15 and $48(a) 94 32 121 140 Reclassifications from OCI – net of deferred taxes of $(5), $0, $(6) and $(2) (18 ) (7 ) (22 ) (16 ) Other comprehensive income (loss) 76 25 99 124 Less OCI attributable to noncontrolling interests — — 1 1 Investment securities ending balance $ 60 $ 21 $ 60 $ 21 Beginning balance $ (5,810 ) $ (3,988 ) $ (6,134 ) $ (4,661 ) OCI before reclassifications – net of deferred taxes of $13, $190, $39 and $(241) (308 ) (2,049 ) (1 ) (1,217 ) Reclassifications from OCI – net of deferred taxes of $0, $0, $(4) and $0(b) 167 380 284 378 Other comprehensive income (loss) (141 ) (1,669 ) 283 (839 ) Less OCI attributable to noncontrolling interests (77 ) (211 ) 22 (54 ) Currency translation adjustments ending balance $ (5,874 ) $ (5,446 ) $ (5,874 ) $ (5,446 ) Beginning balance $ 49 $ 114 $ 13 $ 62 OCI before reclassifications – net of deferred taxes of $(8), $(39), $3 and $(7) (50 ) (131 ) (16 ) (26 ) Reclassifications from OCI – net of deferred taxes of $4, $22, $1 and $7 25 50 28 — Other comprehensive income (loss) (25 ) (81 ) 12 (26 ) Less OCI attributable to noncontrolling interests (1 ) (2 ) 1 — Cash flow hedges ending balance $ 26 $ 36 $ 26 $ 36 Beginning balance $ (7,708 ) $ (8,984 ) $ (8,254 ) $ (9,702 ) OCI before reclassifications – net of deferred taxes of $13, $56, $(35) and $55 7 182 (111 ) 126 Reclassifications from OCI – net of deferred taxes of $164, $218, $347 and $436 632 758 1,294 1,533 Other comprehensive income (loss) 639 940 1,183 1,659 Less OCI attributable to noncontrolling interests (6 ) 1 (8 ) — Benefit plans ending balance $ (7,063 ) $ (8,043 ) $ (7,063 ) $ (8,043 ) Accumulated other comprehensive income (loss) at June 30 $ (12,852 ) $ (13,432 ) $ (12,852 ) $ (13,432 ) (a) Included adjustments of $(1,054) million and $534 million for the three months ended June 30, 2019 and 2018, respectively and $(2,011) million and $1,472 million for the six months ended June 30, 2019 and 2018, respectively, related to insurance liabilities and annuity benefits in our run-off insurance operations to reflect the effects that would have been recognized had the related unrealized investment security gains been realized. See Note 12 for further information. (b) Currency translation gains and losses included $116 million for the six months ended June 30, 2019 in earnings (loss) from discontinued operations, net of taxes. In 2016, we issued $5,694 million of GE Series D preferred stock, which are callable on January 21, 2021. In addition to Series D, $250 million of existing GE Series A, B and C preferred stock are also outstanding. The total carrying value of GE preferred stock at June 30, 2019 was $5,653 million and will increase to $5,944 million by the respective call dates through periodic accretion. Dividends on GE preferred stock are payable semi-annually, in June and December and accretion is recorded on a quarterly basis. Dividends on GE preferred stock totaled $188 million , including cash dividends of $147 million and $185 million , including cash dividends of $147 million , in the three months ended June 30, 2019 and 2018, respectively and $228 million , including cash dividends of $147 million , and $222 million , including cash dividends of $147 million , for the six months ending June 30, 2019 and 2018, respectively. In conjunction with 2016 exchange of GE Capital preferred stock into GE preferred stock, GE Capital issued preferred stock to GE for which the amount and terms mirrored the GE external preferred stock. In 2018, GE Capital and GE exchanged the existing Series D preferred stock issued to GE for new Series D preferred stock, which is mandatorily convertible into GE Capital Common stock on January 21, 2021. After this conversion, GE Capital will no longer pay preferred dividends to GE. The exchange of GE Capital Series D preferred stock has no impact on the GE Series D preferred stock, which remains callable for $5,694 million on January 21, 2021 or thereafter on dividend payment dates. Additionally, there were no changes to the existing Series A, B or C preferred stock issued to GE. See our Annual Report on Form 10-K for the year ended December 31, 2018 for further information. Noncontrolling interests in equity of consolidated affiliates amounted to $20,312 million and $20,500 million , including $19,095 million and $19,239 million attributable to the BHGE Class A shareholders at June 30, 2019 and December 31, 2018, respectively. Net earnings (loss) attributable to noncontrolling interests were $(28) million and $(15) million , for the three months ended June 30, 2019 and 2018, respectively and $2 million and $52 million for the six months ended June 30, 2019 and 2018, respectively. Dividends attributable to noncontrolling interests were $(109) million and $(81) million for the three months ended June 30, 2019 and 2018, respectively and $(215) million and $(164) million for the six months ended June 30, 2019 and 2018, respectively. As previously announced, we plan an orderly separation of our ownership interest in BHGE over time. Any reduction in our ownership interest below 50% will result in us losing control of BHGE. At that point, we would deconsolidate our Oil & Gas segment, recognize any remaining interest at fair value and recognize any difference between carrying value and fair value of our interest in earnings. Depending on the form and timing of our separation, and if BHGE’s stock price remains below our current carrying value, we may recognize a significant loss in earnings. Based on BHGE's share price at July 26, 2019 of $24.84 per share, the loss upon deconsolidation from a sale of our interest would be approximately $7,400 million . Redeemable noncontrolling interests presented within "All other liabilities" in our consolidated Statement of Financial Position include common shares issued by our affiliates that are redeemable at the option of the holder of those interests and amounted to $408 million and $382 million as of June 30, 2019 and December 31, 2018, respectively. Net earnings (loss) attributable to redeemable noncontrolling interests was $5 million and $(116) million for the three months ended June 30, 2019 and 2018, respectively and $32 million and $(149) million for the six months ended June 30, 2019 and 2018, respectively. On October 2, 2018 we settled the redeemable noncontrolling interest balance associated with three joint ventures with Alstom, for a payment amount of $3,105 million in accordance with contractual payment terms. |
EARNINGS PER SHARE INFORMATION
EARNINGS PER SHARE INFORMATION | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE INFORMATION | NOTE 16. EARNINGS PER SHARE INFORMATION Three months ended June 30 2019 2018 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Earnings from continuing operations for per-share calculation $ (103 ) $ (103 ) $ 862 $ 863 Preferred stock dividends (188 ) (188 ) (185 ) (185 ) Earnings from continuing operations attributable to (292 ) (292 ) 677 678 Earnings (loss) from discontinued operations 230 230 (69 ) (68 ) Net earnings (loss) attributable to GE common $ (61 ) $ (61 ) $ 614 $ 615 Shares of GE common stock outstanding 8,724 8,724 8,688 8,688 Employee compensation-related shares (including stock options) — — 11 — Total average equivalent shares 8,724 8,724 8,699 8,688 Earnings per share from continuing operations $ (0.03 ) $ (0.03 ) $ 0.08 $ 0.08 Earnings (loss) per share from discontinued operations 0.03 0.03 (0.01 ) (0.01 ) Net earnings (loss) per share (0.01 ) (0.01 ) 0.07 0.07 Six months ended June 30 2019 2018 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Earnings from continuing operations for per-share calculation $ 873 $ 888 $ 1,156 $ 1,157 Preferred stock dividends (228 ) (228 ) (222 ) (222 ) Earnings from continuing operations attributable to $ 645 $ 661 $ 934 $ 935 Earnings (loss) from discontinued operations 2,800 2,816 (1,515 ) (1,514 ) Net earnings attributable to GE common $ 3,461 $ 3,476 $ (574 ) $ (573 ) Shares of GE common stock outstanding 8,716 8,716 8,686 8,686 Employee compensation-related shares (including stock options) 13 — 9 — Total average equivalent shares 8,730 8,716 8,694 8,686 Earnings from continuing operations $ 0.07 $ 0.08 $ 0.11 $ 0.11 Loss from discontinued operations 0.32 0.32 (0.17 ) (0.17 ) Net earnings 0.40 0.40 (0.07 ) (0.07 ) (a) Included in 2019 is a dilutive adjustment for the change in income for forward purchase contracts that may be settled in stock. Our unvested restricted stock unit awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities, and, therefore, are included in the computation of earnings per share pursuant to the two-class method. For the three months ended June 30, 2019, as a result of excess dividends in respect to the current period earnings, losses were not allocated to the participating securities, and for the six months ended June 30, 2019, application of this treatment had an insignificant effect. For the three and six months ended June 30, 2018, 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 June 30, 2019 and 2018 , approximately 485 million and 411 million of outstanding stock awards were not included in the computation of diluted earnings per share because their effect was antidilutive. For the six months ended June 30, 2019 and 2018, approximately 468 million and 407 million of outstanding stock awards were not included in the computation of diluted earnings per share because their effect was antidilutive. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | NOTE 17. FINANCIAL INSTRUMENTS The following table provides information about assets and liabilities not carried at fair value and excludes finance leases, equity securities without readily determinable fair value and non-financial assets and liabilities. Substantially all of these assets are considered to be Level 3 and the vast majority of our liabilities’ fair value are considered Level 2. June 30, 2019 December 31, 2018 (In millions) Carrying Estimated Carrying Estimated Assets Loans and other receivables $ 8,292 $ 8,358 $ 8,812 $ 8,830 Liabilities Borrowings (Note 11) 105,778 110,233 109,930 106,221 Investment contracts (Note 12) 2,298 2,656 2,388 2,630 Unlike the carrying amount, estimated fair value of borrowings included $ 1,140 million and $ 1,361 million of accrued interest at June 30, 2019 and December 31, 2018 , respectively, and excluded the impact of derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at June 30, 2019 and December 31, 2018 would be reduced by $ 1,685 million and $ 1,300 million, respectively. DERIVATIVES AND HEDGING. Our policy requires that derivatives are used solely for managing risks and not for speculative purposes. Total gross notional was $100,903 million ( $60,331 million in GE Capital and $40,573 million in GE) and $123,535 million ( $79,082 million in GE Capital and $44,453 million in GE) at June 30, 2019 and December 31, 2018, respectively. GE Capital notional relates primarily to managing interest rate and currency risk between financial assets and liabilities, and GE notional relates primarily to managing currency risk. FAIR VALUE OF DERIVATIVES June 30, 2019 December 31, 2018 (In millions) Gross Notional All other assets All other liabilities Gross Notional All other assets All other liabilities Interest rate contracts $ 21,518 $ 1,654 $ 3 $ 22,904 $ 1,335 $ 23 Currency exchange contracts 6,313 97 104 7,970 175 121 Derivatives accounted for as hedges $ 27,831 $ 1,751 $ 106 $ 30,873 $ 1,511 $ 145 Interest rate contracts $ 4,934 $ 46 $ 12 $ 6,198 $ 28 $ 2 Currency exchange contracts 65,872 555 1,093 83,841 727 1,546 Other contracts 2,267 57 78 2,622 13 209 Derivatives not accounted for as hedges $ 73,072 $ 658 $ 1,183 $ 92,662 $ 769 $ 1,757 Gross derivatives $ 100,903 $ 2,409 $ 1,290 $ 123,535 $ 2,279 $ 1,902 Netting and credit adjustments $ (683 ) $ (684 ) $ (959 ) $ (967 ) Cash collateral adjustments (1,230 ) (278 ) (1,042 ) (267 ) Net derivatives recognized in statement of financial position $ 495 $ 327 $ 279 $ 669 Net accrued interest $ 185 $ 3 $ 205 $ 1 Securities held as collateral (460 ) — (235 ) — Net amount $ 220 $ 330 $ 248 $ 670 Fair value of derivatives in our consolidated Statement of Financial Position excluded accrued interest. Cash collateral adjustments excluded excess collateral received and posted of $5 million and $21 million at June 30, 2019, respectively, and $3 million and $439 million at December 31, 2018, respectively. Securities held as collateral excluded excess collateral received of $22 million and zero at June 30, 2019 and December 31, 2018, respectively. FAIR VALUE HEDGES. We use derivatives to hedge the effects of interest rate and currency exchange rate changes on our borrowings. At June 30, 2019 , the cumulative amount of hedging adjustments of $4,221 million (including $2,568 million on discontinued hedging relationships) was included in the carrying amount of the hedged liability of $58,344 million . The cumulative amount of hedging adjustments was primarily recorded in long-term borrowings. CASH FLOW HEDGES. Changes in the fair value of cash flow hedges are recorded in Accumulated Other Comprehensive Income (AOCI) and recorded in earnings in the period in which the hedged transaction occurs. The gain (loss) recognized in AOCI was $(49) million and $(162) million for the three months ended June 30, 2019 and 2018, respectively, and $(2) million and $(20) million for the six months ended June 30, 2019 and 2018, respectively. The gain (loss) reclassified from AOCI to earnings was $(29) million and $(72) million for the three months ended June 30, 2019 and 2018, respectively, and $(29) million and $(7) million for the six months ended June 30, 2019 and 2018, respectively. These amounts were primarily related to currency exchange and interest rate contracts. The total amount in AOCI related to cash flow hedges of forecasted transactions was a $49 million gain at June 30, 2019 . We expect to reclassify $74 million of loss to earnings in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions. For the three months and six months ended June 30, 2019 and 2018, we recognized insignificant gains and losses related to hedged forecasted transactions and firm commitments that did not occur by the end of the originally specified period. At June 30, 2019 and 2018, the maximum term of derivative instruments that hedge forecasted transactions was 13 years and 14 years , respectively. NET INVESTMENT HEDGES. For these hedges, the portion of the fair value changes of the derivatives or debt instruments that relates to changes in spot currency exchange rates is recorded in a separate component of AOCI. The portion of the fair value changes of the derivatives related to differences between spot and forward rates is recorded in earnings each period. The amounts recorded in AOCI affect earnings if the hedged investment is sold, substantially liquidated, or control is lost. The total gain (loss) recognized in AOCI on hedging instruments for the three months ended June 30, 2019 and 2018 was $86 million and $810 million , respectively, comprising $2 million and $92 million on currency exchange contracts and $85 million and $718 million on foreign currency debt, respectively. The total gain (loss) recognized in AOCI on hedging instruments for the six months ended June 30, 2019 and 2018 was $18 million and $205 million , respectively, comprising $(25) million and $83 million on currency exchange contracts and $44 million and $123 million on foreign currency debt. The total gain (loss) excluded from assessment and recognized in earnings was $8 million and $6 million for the three months ended June 30, 2019 and 2018, respectively. The total gain (loss) excluded from assessment and recognized in earnings was $16 million and $8 million for the six months ended June 30, 2019 and 2018. The carrying value of foreign currency debt designated as net investment hedges was $12,421 million and $9,815 million at June 30, 2019 and 2018, respectively. The total reclassified from AOCI into earnings was insignificant for the three and six months ended June 30, 2019 and 2018, respectively. EFFECTS OF DERIVATIVES ON EARNINGS. All derivatives are marked to fair value on our balance sheet, whether they are designated in a hedging relationship for accounting purposes or are used as economic hedges. For derivatives not designated as hedging instruments, substantially all of the gain or loss recognized in earnings is offset by either the current period change in value of underlying exposures which is recorded in earnings in the current period or a future period when the recording of the exposures occur . The table below presents the effect of our derivative financial instruments in the consolidated Statement of Earnings: Three months ended June 30, 2019 Three months ended June 30, 2018 (In millions) Revenues Cost of sales Interest Expense SG&A Other Income Revenues Cost of sales Interest Expense SG&A Other Income Total amounts presented in the consolidated Statement of Earnings $ 28,831 $ 21,817 $ 991 $ 4,184 $ (8 ) $ 29,162 $ 21,749 $ 1,291 $ 4,346 $ 886 Total effect of cash flow hedges $ (15 ) $ (5 ) $ (9 ) $ — $ — $ (72 ) $ 9 $ (10 ) $ — $ — Hedged items $ (659 ) $ 195 Derivatives designated as hedging instruments 646 (225 ) Total effect of fair value hedges $ (14 ) $ (30 ) Interest rate contracts $ (16 ) $ — $ — $ — $ — $ (20 ) $ — $ — $ — $ — Currency exchange contracts (370 ) (52 ) (76 ) 1 (33 ) (1,159 ) (249 ) 69 130 (52 ) Other — — 27 — (11 ) 4 — 25 — 11 Total effect of derivatives not designated as hedges $ (385 ) $ (52 ) $ (49 ) $ 1 $ (43 ) $ (1,175 ) $ (249 ) $ 94 $ 130 $ (40 ) Six months ended June 30, 2019 Six months ended June 30, 2018 (In millions) Revenues Cost of sales Interest Expense SG&A Other Income Revenues Cost of sales Interest Expense SG&A Other Income Total amounts presented in the consolidated Statement of Earnings $ 56,117 $ 42,170 $ 2,123 $ 8,330 $ 870 $ 56,950 $ 42,659 $ 2,573 $ 8,434 $ 1,091 Total effect of cash flow hedges $ 5 $ (14 ) $ (19 ) $ (1 ) $ — $ (4 ) $ 16 $ (20 ) $ — $ — Hedged items $ (1,186 ) $ 866 Derivatives designated as hedging instruments 1,161 (922 ) Total effect of fair value hedges $ (25 ) $ (56 ) Interest rate contracts $ (36 ) $ — $ — $ — $ — $ (34 ) $ — $ — $ — $ — Currency exchange contracts 83 (44 ) (139 ) (44 ) (29 ) (506 ) (243 ) — — (1 ) Other — — 123 — 3 (1 ) — (10 ) — 21 Total effect of derivatives not designated as hedges $ 48 $ (44 ) $ (16 ) $ (44 ) $ (27 ) $ (542 ) $ (243 ) $ (10 ) $ — $ 19 COUNTERPARTY CREDIT RISK Fair values of our derivatives can change significantly from period to period based on, among other factors, market movements and changes in our positions. We manage counterparty credit risk (the risk that counterparties will default and not make payments to us according to the terms of our agreements) on an individual counterparty basis. Where we have agreed to netting of derivative exposures with a counterparty, we net our exposures with that counterparty and apply the value of collateral posted to us to determine the exposure. We actively monitor these net exposures against defined limits and take appropriate actions in response, including requiring additional collateral. Our exposures to counterparties (including accrued interest), net of collateral we held, was $123 million and $148 million at June 30, 2019 and December 31, 2018, respectively. Counterparties' exposures to our derivative liability (including accrued interest), net of collateral posted by us, was $307 million and $644 million at June 30, 2019 and December 31, 2018, respectively. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 18. VARIABLE INTEREST ENTITIES In addition to the three VIEs detailed in Note 4, we have other consolidated VIEs with assets of $2,130 million and $2,551 million , and liabilities of $1,489 million and $1,636 million at June 30 2019 and December 31, 2018, respectively. These entities were created to help our customers facilitate or finance the purchase of GE goods and services. These entities have no features that could expose us to losses that would significantly exceed the difference between the consolidated assets and liabilities. Substantially all the assets of our consolidated VIEs at June 30, 2019 can only be used to settle the liabilities of those VIEs. Our investments in unconsolidated VIEs were $2,357 million and $2,346 million at June 30, 2019 and December 31, 2018, respectively. These investments are primarily owned by GE Capital businesses, $1,334 million and $1,670 million of which were owned by EFS and $502 million and zero of which were owned by Insurance at June 30, 2019 and December 31, 2018, respectively. Obligations to make additional investments in these entities are not significant. |
COMMITMENTS, GUARANTEES, PRODUC
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES | NOTE 19. COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES COMMITMENTS . The GECAS business within the Capital segment has placed multiple-year orders for various Boeing, Airbus and other aircraft manufacturers with list prices approximating $ 32,550 million (including 377 new aircraft with delivery dates of 15% in 2019, 20% in 2020 and 65% in 2021 through 2024) and secondary orders with airlines for used aircraft approximating $ 2,159 million (including 57 used aircraft with delivery dates of 47% in 2019, 37% in 2020 and 16% in 2021 through 2022) at June 30, 2019 . When we purchase aircraft, it is at a contractual price, which is usually less than the aircraft manufacturer’s list price and excludes any pre-delivery payments made in advance. As of June 30, 2019 , we have made $3,153 million of pre-delivery payments to aircraft manufacturers. GE Capital had total investment commitments of $3,037 million at June 30, 2019, that primarily comprise investment commitments related to our run-off insurance operations and project financing investments in thermal and wind energy projects. As of June 30, 2019 , in our Aviation segment, we have committed to provide financing assistance of $ 2,365 million for 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, and are not netted against the liabilities. At June 30, 2019 , we were committed under the following guarantee arrangements beyond those provided on behalf of VIEs. See Note 18 for further information. Credit Support. At June 30, 2019 , we have provided $ 1,627 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 our 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 for the term of the related financing arrangements or transactions. The liability for such credit support was $ 53 million at June 30, 2019 . Indemnification Agreements – Continuing Operations. At June 30, 2019 , we have $ 1,610 million of other indemnification commitments, including representations and warranties in sales of businesses or assets, for which we recorded a liability of $ 139 million. Indemnification Agreements – Discontinued Operations. At June 30, 2019 , we provided specific indemnities to buyers of GE Capital’s businesses and assets that, in the aggregate, represent a maximum potential claim of $1,136 million with related reserves of $149 million . In addition, in connection with the 2015 public offering and sale of Synchrony Financial, GE Capital indemnified Synchrony Financial and its directors, officers, and employees against the liabilities of GECC's businesses other than historical liabilities of the businesses that are part of Synchrony Financial's ongoing operations. PRODUCT WARRANTIES . We provide for estimated product warranty expenses when we sell the related products. Because warranty estimates are forecasts that are based on the best available information, mostly historical claims experience, claims costs may differ from amounts provided. An analysis of changes in the liability for product warranties follows . Six months ended June 30 (In millions) 2019 2018 Balance at January 1 $ 2,428 $ 2,268 Current-year provisions 328 349 Expenditures (332 ) (417 ) Other changes 38 144 Balance as of June 30 $ 2,462 $ 2,344 LEGAL MATTERS. In the normal course of our business, we are involved from time to time in various arbitrations, class actions, commercial litigation, investigations and other legal, regulatory or governmental actions, including the significant matters described below. In many proceedings, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the size or range of the possible loss, and accruals for legal matters are not recorded until a loss for a particular matter is considered probable and reasonably estimable. Given the nature of legal matters and the complexities involved, it is often difficult to predict and determine a meaningful estimate of loss or range of loss until we know, among other factors, the particular claims involved, the likelihood of success of our defenses to those claims, the damages or other relief sought, how discovery or other procedural considerations will affect the outcome, the settlement posture of other parties and other factors that may have a material effect on the outcome. Moreover, it is not uncommon for legal matters to be resolved over many years, during which time relevant developments and new information must be continuously evaluated. WMC. During the fourth quarter of 2007, we completed the sale of WMC, our U.S. mortgage business. WMC substantially discontinued all new loan originations by the second quarter of 2007, and was never a loan servicer. In connection with the sale, WMC retained certain representation and warranty obligations related to loans sold to third parties prior to the disposal of the business and contractual obligations to repurchase previously sold loans that had an early payment default. All claims received by WMC for early payment default have either been resolved or are no longer being pursued. The remaining active claims have been brought by securitization trustees or administrators seeking recovery from WMC for alleged breaches of representations and warranties on mortgage loans that serve as collateral for residential mortgage-backed securities (RMBS). These claims will be resolved as part of the Chapter 11 bankruptcy case described below. In January 2019, we announced an agreement in principle with the United States to settle the investigation by the U.S. Department of Justice (DOJ) regarding potential violations of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) by WMC and GE Capital, and in April 2019, the parties entered into a definitive settlement agreement. Under the agreement, which concludes this investigation, GE, without admitting liability or wrongdoing, paid the United States a civil penalty of $1,500 million . In April 2019, WMC commenced a case under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. WMC intends to file a Chapter 11 plan seeking an efficient and orderly resolution of all claims, demands, rights, and/or liabilities to be asserted by or against WMC as the debtor. GE Capital is providing up to $25 million of debtor-in-possession financing to fund administrative expenses associated with the Chapter 11 proceeding. Beginning in the second quarter of 2019, as a result of WMC commencing the Chapter 11 case, we will no longer consolidate WMC’s financial results or position on the books and records of GE Capital. We recognized $67 million of pre-tax charges during the second quarter of 2019, reflecting an updated settlement estimate in the context of bankruptcy for litigation that was pending when the Chapter 11 case commenced, as well as additional claims that have been brought in bankruptcy. In total, we have recognized $211 million of liabilities as of June 30, 2019, associated with amounts we anticipate paying in connection with an efficient and orderly resolution of claims in the Chapter 11 case. Alstom legacy matters. On November 2, 2015, we acquired the Thermal, Renewables and Grid businesses from Alstom. Prior to the acquisition, the seller was the subject of two significant cases involving anti-competitive activities and improper payments: (1) in January 2007, Alstom was fined €65 million by the European Commission for participating in a gas insulated switchgear cartel that operated from 1988 to 2004 (that fine was later reduced to €59 million ), and (2) in December 2014, Alstom pled guilty in the United States to multiple violations of the Foreign Corrupt Practices Act and paid a criminal penalty of $772 million . As part of GE’s accounting for the acquisition, we established a reserve amounting to $858 million for legal and compliance matters related to the legacy business practices that were the subject of these and related cases in various jurisdictions. At June 30, 2019 , this reserve balance was $872 million . The increase is primarily driven by foreign currency movements. Regardless of jurisdiction, the allegations relate to claimed anti-competitive conduct or improper payments in the pre-acquisition period as the source of legal violations and/or damages. Given the significant litigation and compliance activity related to these matters and our ongoing efforts to resolve them, it is difficult to assess whether the disbursements will ultimately be consistent with the reserve established. The estimation of this reserve involved significant judgment and may not reflect the full range of uncertainties and unpredictable outcomes inherent in litigation and investigations of this nature, and at this time we are unable to develop a meaningful estimate of the range of reasonably possible additional losses beyond the amount of this reserve. Damages sought may include disgorgement of profits on the underlying business transactions, fines and/or penalties, interest, or other forms of resolution. Factors that can affect the ultimate amount of losses associated with these and related matters include the way cooperation is assessed and valued, prosecutorial discretion in the determination of damages, formulas for determining fines and penalties, the duration and amount of legal and investigative resources applied, political and social influences within each jurisdiction, and tax consequences of any settlements or previous deductions, among other considerations. Actual losses arising from claims in these and related matters could exceed the amount provided. ENVIRONMENTAL, HEALTH AND SAFETY MATTERS. Our operations, like operations of other companies engaged in similar businesses, involve the use, disposal and cleanup of substances regulated under environmental protection laws. We are involved in numerous remediation actions to clean up hazardous wastes as required by federal and state laws, as well as litigation involving asbestos and other environmental, health and safety-related claims. Liabilities for remediation costs exclude possible insurance recoveries and, when dates and amounts of such costs are not known, are not discounted. When there appears to be a range of possible costs with equal likelihood, liabilities are based on the low end of such range. It is reasonably possible that our exposure will exceed amounts accrued. However, due to uncertainties about the status of laws, regulations, technology and information related to individual matters, such amounts are not reasonably estimable. For further information, see our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 . |
CASH FLOWS INFORMATION
CASH FLOWS INFORMATION | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
CASH FLOWS INFORMATION | NOTE 20. CASH FLOWS INFORMATION Changes in operating assets and liabilities are net of acquisitions and dispositions of principal businesses. Amounts reported in the “Proceeds from sales of discontinued operations” and “Proceeds from principal business dispositions” lines in our consolidated Statement of Cash Flows are net of cash transferred and included certain deal-related costs. Amounts reported in the “Net cash from (payments for) principal businesses purchased” line are net of cash acquired and included certain deal-related costs and debt assumed and immediately repaid in acquisitions. GE Six months ended June 30 (In millions) 2019 2018 Increase (decrease) in employee benefit liabilities $ (861 ) $ (506 ) Other gains on investing activities (45 ) (449 ) Restructuring and other charges(a) 721 1,198 Restructuring and other cash expenditures (775 ) (807 ) Increase (decrease) in equipment project accruals (218 ) (831 ) Other(b) (186 ) (289 ) All other operating activities $ (1,364 ) $ (1,684 ) Derivative settlements (net) $ 30 $ (489 ) Investments in intangible assets (net) (13 ) (533 ) Other investments (net)(c) 1,866 10 Other(d) (326 ) 130 All other investing activities $ 1,557 $ (882 ) Acquisition of noncontrolling interests $ (28 ) $ (627 ) Dividends paid to noncontrolling interests (232 ) (159 ) Other (27 ) 54 All other financing activities $ (287 ) $ (732 ) (a) Excludes non-cash adjustments reflected as "Depreciation and amortization of property, plant and equipment" or "Amortization of intangible assets" in our consolidated Statement of Cash Flows. (b) Included other adjustments to net income, such as write-downs of assets and the impacts of acquisition accounting and changes in other assets and other liabilities classified as operating activities, such as the timing of payments of customer allowances. (c) Primarily included proceeds from the secondary offering of Wabtec common stock shares of $1,799 million in the second quarter of 2019. (d) Other primarily included net activity related to settlements between our continuing operations and businesses in discontinued operations (primarily our Transportation segment) in 2019. |
INTERCOMPANY TRANSACTIONS
INTERCOMPANY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
INTERCOMPANY TRANSACTIONS | NOTE 21. INTERCOMPANY TRANSACTIONS Transactions between related companies are made on arm's length terms and are reported in the GE and GE Capital columns of our financial statements, which we believe provide useful supplemental information to our consolidated financial statements. These transactions are eliminated in consolidation and may include, but are not limited to, the following: GE Capital working capital services to GE, including current receivables and supply chain finance programs; GE Capital finance transactions, including related GE guarantees to GE Capital; GE Capital financing of GE long-term receivables; and aircraft engines, power equipment and renewable energy equipment manufactured by GE that are installed on GE Capital investments, including leased equipment. In addition to the above transactions that primarily enable growth for the GE businesses, there are routine related party transactions, which include, but are not limited to, the following: e xpenses related to parent-subsidiary pension plans; buildings and equipment leased between GE and GE Capital, including sale-leaseback transactions; information technology (IT) and other services sold to GE Capital by GE; s ettlements of tax liabilities; and v arious investments, loans and allocations of GE corporate overhead costs. Presented below is a walk of intercompany eliminations from the combined GE and GE Capital totals to the consolidated cash flows. Six months ended June 30 (In millions) 2019 2018 Combined $ 437 $ (1,003 ) GE current receivables sold to GE Capital 557 491 GE long-term receivables sold to GE Capital 269 738 Supply chain finance programs 489 145 Other reclassifications and eliminations 18 (752 ) Total cash from (used for) operating activities - continuing operations $ 1,770 $ (382 ) Combined $ 2,890 $ 5,752 GE current receivables sold to GE Capital (1,294 ) (1,469 ) GE long-term receivables sold to GE Capital (269 ) (738 ) GE Capital long-term loans to GE — 920 Supply chain finance programs (489 ) (145 ) Capital contribution from GE to GE Capital 1,500 — Other reclassifications and eliminations (692 ) 946 Total cash from (used for) investing activities - continuing operations $ 1,646 $ 5,266 Combined $ (6,206 ) $ (20,775 ) GE current receivables sold to GE Capital 737 978 GE Capital long-term loans to GE — (920 ) Capital contribution from GE to GE Capital (1,500 ) — Other reclassifications and eliminations 674 (193 ) Total cash from (used for) financing activities - continuing operations $ (6,294 ) $ (20,911 ) GE current receivables sold to GE Capital excludes $220 million and $2,691 million related to cash payments received on the Receivable facility deferred purchase price in the six months ended June 30, 2019 and 2018 respectively, which are reflected as "Cash from investing activities" in the GE Capital and the GE columns of our consolidated Statement of Cash Flows. Sales of current and long-term receivables from GE to GE Capital are classified as "Cash from operating activities" in the GE column of our Statement of Cash Flows. See Note 4 for further information. |
GUARANTOR FINANCIAL INFORMATION
GUARANTOR FINANCIAL INFORMATION | 6 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
GUARANTOR FINANCIAL INFORMATION | NOTE 22. GUARANTOR FINANCIAL INFORMATION GE Capital International Funding Company Unlimited Company (the Issuer) previously issued senior unsecured registered notes that are fully and unconditionally, jointly and severally guaranteed by both the Company and GE Capital International Holdings Limited (each a Guarantor, and together, the Guarantors). The Company is required to provide certain financial information regarding the Issuer and the Guarantors of the registered securities, specifically Condensed Consolidating Statements of Earnings and Comprehensive Income, Condensed Consolidating Statements of Financial Position and Condensed Consolidating Statements of Cash Flows for: • General Electric Company (the Parent Company Guarantor) – prepared with investments in subsidiaries accounted for under the equity method of accounting and excluding any inter-segment eliminations; • GE Capital International Funding Company Unlimited Company (the Subsidiary Issuer) – finance subsidiary that issued the guaranteed notes for debt; • GE Capital International Holdings Limited (GECIHL) (the Subsidiary Guarantor) – prepared with investments in non-guarantor subsidiaries accounted for under the equity method of accounting; • Non-Guarantor Subsidiaries – prepared on an aggregated basis excluding any elimination or consolidation adjustments and includes predominantly all non-cash adjustments for cash flows; • Consolidating Adjustments – adjusting entries necessary to consolidate the Parent Company Guarantor with the Subsidiary Issuer, the Subsidiary Guarantor and Non-Guarantor Subsidiaries and in the comparative periods, this category includes the impact of new accounting policies adopted as described in Note 1; and • Consolidated – prepared on a consolidated basis. CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED JUNE 30, 2019 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Sales of goods and services $ 8,245 $ — $ — $ 25,141 $ (6,598 ) $ 26,788 GE Capital revenues from services — 245 11 2,052 (265 ) 2,043 Total revenues 8,245 245 11 27,193 (6,863 ) 28,831 Interest and other financial charges 541 241 332 110 (234 ) 991 Other costs and expenses 4,663 — 38 5,931 17,473 28,106 Total costs and expenses 5,205 241 371 6,042 17,239 29,097 Other income (loss) 3,529 — — (8,832 ) 5,295 (8 ) Equity in earnings (loss) of affiliates (6,727 ) — 469 16,162 (9,904 ) — Earnings (loss) from continuing operations before income taxes (159 ) 4 110 28,481 (28,711 ) (274 ) Benefit (provision) for income taxes 48 (1 ) — 366 (266 ) 148 Earnings (loss) from continuing operations (110 ) 4 110 28,847 (28,977 ) (126 ) Earnings (loss) from discontinued operations, net of taxes 238 — 2 — (9 ) 231 Net earnings (loss) 127 4 112 28,847 (28,986 ) 104 Less net earnings (loss) attributable to noncontrolling interests — — — 4 (28 ) (23 ) Net earnings (loss) attributable to the Company 127 4 112 28,843 (28,959 ) 127 Other comprehensive income (loss) 633 — (22 ) — 22 633 Comprehensive income (loss) attributable to the Company $ 760 $ 4 $ 89 $ 28,843 $ (28,936 ) $ 760 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED JUNE 30, 2018 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Sales of goods and services $ 7,947 $ — $ — $ 41,000 $ (21,796 ) $ 27,151 GE Capital revenues from services — 233 326 2,593 (1,141 ) 2,011 Total revenues 7,947 233 326 43,593 (22,937 ) 29,162 Interest and other financial charges 74 230 617 872 (502 ) 1,291 Other costs and expenses 13,486 — — 38,881 (24,845 ) 27,520 Total costs and expenses 13,560 230 617 39,753 (25,347 ) 28,812 Other income (loss) 1,621 — — 2,970 (3,705 ) 886 Equity in earnings (loss) of affiliates 4,442 — (127 ) 12,249 (16,563 ) — Earnings (loss) from continuing operations before income taxes 450 3 (418 ) 19,059 (17,858 ) 1,236 Benefit (provision) for income taxes 471 — — (1,162 ) 188 (504 ) Earnings (loss) from continuing operations 921 3 (418 ) 17,897 (17,670 ) 732 Earnings (loss) from discontinued operations, net of taxes (121 ) — (63 ) — 121 (63 ) Net earnings (loss) 800 3 (482 ) 17,897 (17,550 ) 669 Less net earnings (loss) attributable to noncontrolling interests — — — (116 ) (16 ) (132 ) Net earnings (loss) attributable to the Company 800 3 (482 ) 18,013 (17,534 ) 800 Other comprehensive income (loss) (571 ) — (94 ) (2,509 ) 2,603 (571 ) Comprehensive income (loss) attributable to the Company $ 229 $ 3 $ (575 ) $ 15,503 $ (14,931 ) $ 229 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2019 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Sales of goods and services $ 12,825 $ — $ — $ 63,597 $ (24,292 ) $ 52,130 GE Capital revenues from services — 479 86 4,631 (1,209 ) 3,987 Total revenues 12,825 479 86 68,228 (25,501 ) 56,117 Interest and other financial charges 632 472 712 750 (442 ) 2,123 Other costs and expenses 13,445 — 39 44,748 (4,369 ) 53,863 Total costs and expenses 14,077 472 750 45,499 (4,811 ) 55,986 Other income (loss) (3,211 ) — — 8,131 (4,049 ) 870 Equity in earnings (loss) of affiliates 8,198 — 845 27,175 (36,218 ) — Earnings (loss) from continuing operations before income taxes 3,735 7 181 58,036 (60,957 ) 1,001 Benefit (provision) for income taxes (287 ) (1 ) — (292 ) 506 (74 ) Earnings (loss) from continuing operations 3,448 6 181 57,744 (60,452 ) 926 Earnings (loss) from discontinued operations, net of taxes 268 — 2 — 2,553 2,823 Net earnings (loss) 3,716 6 182 57,744 (57,899 ) 3,749 Less net earnings (loss) attributable to noncontrolling interests — — — 4 30 34 Net earnings (loss) attributable to the Company 3,716 6 182 57,740 (57,929 ) 3,716 Other comprehensive income (loss) 1,562 — (1,104 ) (443 ) 1,547 1,562 Comprehensive income (loss) attributable to the Company $ 5,277 $ 6 $ (922 ) $ 57,297 $ (56,382 ) $ 5,277 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2018 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Sales of goods and services $ 15,651 $ — $ — $ 78,980 $ (41,478 ) $ 53,153 GE Capital revenues from services — 441 551 4,151 (1,346 ) 3,797 Total revenues 15,651 441 551 83,131 (42,824 ) 56,950 Interest and other financial charges (8 ) 436 1,164 1,702 (720 ) 2,573 Other costs and expenses 23,085 — — 77,458 (46,588 ) 53,954 Total costs and expenses 23,077 436 1,163 79,160 (47,308 ) 56,527 Other income (loss) 1,896 — — 1,097 (1,902 ) 1,091 Equity in earnings (loss) of affiliates 7,034 — 493 12,090 (19,617 ) — Earnings (loss) from continuing operations before income taxes 1,503 5 (119 ) 17,159 (17,035 ) 1,513 Benefit (provision) for income taxes (177 ) (1 ) — (562 ) 286 (454 ) Earnings (loss) from continuing operations 1,326 4 (119 ) 16,596 (16,748 ) 1,060 Earnings (loss) from discontinued operations, net of taxes (1,673 ) — (81 ) 1 249 (1,504 ) Net earnings (loss) (347 ) 4 (200 ) 16,597 (16,500 ) (444 ) Less net earnings (loss) attributable to noncontrolling interests — — — (121 ) 24 (98 ) Net earnings (loss) attributable to the Company (347 ) 4 (200 ) 16,719 (16,523 ) (347 ) Other comprehensive income (loss) 971 — (55 ) (1,631 ) 1,686 971 Comprehensive income (loss) attributable to the Company $ 625 $ 4 $ (254 ) $ 15,087 $ (14,837 ) $ 625 CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION JUNE 30, 2019 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash, cash equivalents and restricted cash $ 8,639 $ — $ — $ 23,913 $ (585 ) $ 31,968 Receivables - net 46,050 17,601 20 60,972 (94,452 ) 30,191 Investment in subsidiaries 183,102 — 45,441 710,678 (939,222 ) — All other assets 37,287 110 — 322,236 (109,684 ) 249,950 Total assets $ 275,079 $ 17,711 $ 45,462 $ 1,117,800 $ (1,143,943 ) $ 312,109 Short-term borrowings $ 143,998 $ — $ 6,619 $ 8,186 $ (143,183 ) $ 15,620 Long-term and non-recourse borrowings 47,641 16,559 25,402 44,901 (11,226 ) 90,158 All other liabilities 65,106 101 216 141,194 (56,415 ) 150,202 Total liabilities 256,745 16,660 32,237 194,281 (243,943 ) 255,980 Total liabilities and equity $ 275,079 $ 17,711 $ 45,462 $ 1,117,800 $ (1,143,943 ) $ 312,109 CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2018 (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash, cash equivalents and restricted cash $ 9,561 $ — $ — $ 25,975 $ (689 ) $ 34,847 Receivables - net 28,426 17,467 2,792 69,268 (84,095 ) 33,857 Investment in subsidiaries 215,434 — 45,832 733,535 (994,801 ) — All other assets 29,612 12 — 359,066 (147,810 ) 240,880 Total assets $ 283,033 $ 17,479 $ 48,623 $ 1,187,844 $ (1,227,394 ) $ 309,585 Short-term borrowings $ 150,426 $ — $ 9,854 $ 9,649 $ (157,108 ) $ 12,821 Long-term and non-recourse borrowings 59,800 16,115 24,341 41,066 (44,213 ) 97,109 All other liabilities 41,826 336 245 153,166 (47,399 ) 148,174 Total liabilities 252,052 16,452 34,439 203,881 (248,720 ) 258,104 Total liabilities and equity $ 283,033 $ 17,479 $ 48,623 $ 1,187,844 $ (1,227,394 ) $ 309,585 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2019 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash from (used for) operating activities(a) $ (3,564 ) $ 341 $ (1,272 ) $ (558 ) $ 5,073 $ 20 Cash from (used for) investing activities $ 20,887 $ (341 ) $ 820 $ 105,020 $ (123,057 ) $ 3,329 Cash from (used for) financing activities $ (18,245 ) $ — $ 452 $ (106,630 ) $ 118,087 $ (6,336 ) Effect of currency exchange rate changes on cash, cash equivalents and restricted cash — — — 1 — 1 Increase (decrease) in cash, cash equivalents and restricted cash (922 ) — — (2,168 ) 104 (2,986 ) Cash, cash equivalents and restricted cash at beginning of year 9,561 — — 26,676 (689 ) 35,548 Cash, cash equivalents and restricted cash 8,639 — — 24,508 (585 ) 32,562 Less cash, cash equivalents and restricted cash of discontinued operations at June 30 — — — 594 — 594 Cash, cash equivalents and restricted cash of continuing operations at June 30 $ 8,639 $ — $ — $ 23,913 $ (585 ) $ 31,968 (a) Parent Company Guarantor cash flows included cash from (used for) operating activities of discontinued operations of $(2,048) million . CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2018 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash from (used for) operating activities(a) $ 10,952 $ (123 ) $ (117 ) $ 9,711 $ (21,098 ) $ (675 ) Cash from (used for) investing activities $ 12,523 $ 193 $ (882 ) $ (21,946 ) $ 15,549 $ 5,437 Cash from (used for) financing activities $ (25,094 ) $ (70 ) $ 999 $ (2,406 ) $ 5,658 $ (20,913 ) Effect of currency exchange rate changes on cash, cash equivalents and restricted cash — — — (285 ) — (285 ) Increase (decrease) in cash, cash equivalents and restricted cash (1,620 ) — — (14,926 ) 110 (16,436 ) Cash, cash equivalents and restricted cash at beginning of year 3,472 — 3 41,993 (743 ) 44,724 Cash, cash equivalents and restricted cash 1,852 — 3 27,067 (634 ) 28,288 Less cash, cash equivalents and restricted cash of discontinued operations at June 30 — — — 744 — 744 Cash, cash equivalents and restricted cash of continuing operations at June 30 $ 1,852 $ — $ 3 $ 26,323 $ (634 ) $ 27,545 (a) Parent Company Guarantor cash flows included cash from (used for) operating activities of discontinued operations of $(2,441) million . |
SEGMENT OPERATIONS
SEGMENT OPERATIONS | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT OPERATIONS | SEGMENT OPERATIONS. Segment revenues include sales of products and services by the segment. Industrial segment profit is determined based on internal performance measures used by our Chief Operating Decision Maker (CODM), who is our Chief Executive Officer (CEO), to assess the performance of each business in a given period. In connection with that assessment, the CEO may exclude matters, such as charges for restructuring, rationalization and other similar expenses, acquisition costs and other related charges, certain gains and losses from acquisitions or dispositions, and certain litigation settlements. Subsequent to the Baker Hughes transaction on July 3, 2017, restructuring and other charges are included in the determination of segment profit for our Oil & Gas segment. See the Corporate Items and Eliminations section for additional information about costs excluded from segment profit. Segment profit excludes results reported as discontinued operations and the portion of earnings or loss attributable to noncontrolling interests of consolidated subsidiaries, and as such only includes the portion of earnings or loss attributable to our share of the consolidated earnings or loss of consolidated subsidiaries. Interest and other financial charges, income taxes and non-operating benefit costs are excluded in determining segment profit for the industrial segments. Interest and other financial charges, income taxes, non-operating benefit costs and GE Capital preferred stock dividends are included in determining segment profit (which we sometimes refer to as “net earnings”) for the Capital segment. Other income is included in segment profit for the industrial segments. Certain corporate costs, such as those related to shared services, employee benefits, and information technology, are allocated to our segments based on usage. A portion of the remaining corporate costs is allocated based on each segment’s relative net cost of operations. SUMMARY OF REPORTABLE SEGMENTS Three months ended June 30 Six months ended June 30 (Dollars in millions) 2019 2018 V% 2019 2018 V% Power $ 4,681 $ 6,261 (25) % $ 9,298 $ 12,209 (24) % Renewable Energy 3,627 2,883 26 % 6,165 5,722 8 % Aviation 7,877 7,519 5 % 15,831 14,631 8 % Healthcare 4,934 4,978 (1) % 9,616 9,680 (1) % Oil & Gas 5,953 5,554 7 % 11,569 10,939 6 % Total industrial segment revenues 27,071 27,195 — % 52,479 53,181 (1) % Capital 2,321 2,429 (4) % 4,548 4,602 (1) % Total segment revenues 29,392 29,623 (1) % 57,027 57,783 (1) % Corporate items and eliminations (561 ) (462 ) (21) % (910 ) (833 ) (9) % Consolidated revenues $ 28,831 $ 29,162 (1) % $ 56,117 $ 56,950 (1) % Power $ 117 $ 410 (71) % $ 228 $ 654 (65) % Renewable Energy (184 ) 85 U (371 ) 196 U Aviation 1,385 1,475 (6) % 3,046 3,078 (1) % Healthcare 958 926 3 % 1,740 1,660 5 % Oil & Gas 82 73 12 % 245 (70 ) F Total industrial segment profit (loss) 2,359 2,969 (21) % 4,887 5,518 (11) % Capital (89 ) (207 ) 57 % 46 (422 ) F Total segment profit (loss) 2,270 2,762 (18) % 4,933 5,095 (3) % Corporate items and eliminations (956 ) (222 ) U (1,165 ) (886 ) (31) % GE goodwill impairments (744 ) — — % (744 ) — — % GE interest and other financial charges (444 ) (686 ) 35 % (1,032 ) (1,326 ) 22 % GE non-operating benefit costs (554 ) (688 ) 19 % (1,115 ) (1,369 ) 19 % GE benefit (provision) for income taxes 137 (487 ) F (213 ) (576 ) 63 % Earnings (loss) from continuing operations attributable to GE common shareowners (291 ) 679 U 663 940 (29 )% Earnings (loss) from discontinued operations, net of taxes 231 (63 ) F 2,823 (1,504 ) F Less net earnings attributable to noncontrolling interests, discontinued operations — 1 (100) % (2 ) 4 U Earnings (loss) from discontinued operations, net of tax and noncontrolling interest 231 (64 ) F 2,825 (1,508 ) F Consolidated net earnings (loss) attributable to the GE common shareowners $ (61 ) $ 615 U $ 3,488 $ (568 ) F Effective the first quarter of 2019, Corporate items and eliminations includes the results of our Lighting segment for all periods presented. Oil & Gas segment profit excluding restructuring and other charges* of $135 million and $148 million was $217 million and $222 million for the three months ended June 30, 2019 and 2018, respectively. Oil & Gas segment profit excluding restructuring and other charges* of $194 million and $473 million was $439 million and $403 million for the six months ended June 30, 2019 and 2018, respectively. *Non-GAAP Financial Measure |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | The accompanying consolidated financial statements represent the consolidation of General Electric Company (the Company) and all companies that we directly or indirectly control, either through majority ownership or otherwise. As used in these financial statements, “GE” represents the adding together of all affiliated companies except GE Capital (GE Capital or Financial Services), whose continuing operations are presented on a one-line basis; GE Capital represents the adding together of all affiliates of GE Capital with the effects of transactions among such affiliates eliminated; and “Consolidated” represents the adding together of GE and GE Capital with the effects of transactions between the two eliminated. |
RECLASSIFICATION | We have reclassified certain prior-period amounts to conform to the current-period presentation. Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in millions. Unless otherwise indicated, information in these notes to the consolidated financial statements relates to continuing operations. |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | Debt securities and money market instruments with original maturities of three months or less are included in cash, cash equivalents and restricted cash unless designated as available-for-sale and classified as investment securities. |
LEASE ACCOUNTING, LESSEE | At lease commencement, we record a lease liability and corresponding right-of-use (ROU) asset. Lease liabilities represent the present value of our future lease payments over the expected lease term which includes options to extend or terminate the lease when it is reasonably certain those options will be exercised. We have elected to include lease and non-lease components in determining our lease liability for all leased assets except our vehicle leases. Non-lease components are generally services that the lessor performs for the Company associated with the leased asset. For those leases with payments based on an index, the lease liability is determined using the index at lease commencement. Lease payments based on increases in the index subsequent to lease commencement are recognized as variable lease expense as they occur. The present value of our lease liability is determined using our incremental collateralized borrowing rate at lease inception. ROU assets represent our right to control the use of the leased asset during the lease and are recognized in an amount equal to the lease liability. Over the lease term we use the effective interest rate method to account for the lease liability as lease payments are made and the ROU asset is amortized to earnings in a manner that results in straight-line expense recognition. A ROU asset and lease liability is not recognized for leases with an initial term of 12 months or less and we recognize lease expense for these leases on a straight-line basis over the lease term. |
LEASE ACCOUNTING, LESSOR | Equipment leased to others under operating leases are included in "Property, plant and equipment" and leases classified as finance leases are included in "Financing receivables" on our consolidated Statement of Financial Position. |
ACCOUNTING CHANGES | On January 1, 2019, we adopted ASU No. 2016-02, Leases . Upon adoption, we recorded a $317 million increase to retained earnings, primarily attributable to the release of deferred gains on sale-lease back transactions. Our right-of-use assets and lease liabilities for operating leases excluding discontinued operations at adoption were $ 4,116 million and $ 4,303 million, respectively. After the adoption date, cash collections of principal on financing leases, will be classified as Cash from operating activities in our consolidated Statement of Cash Flows. Previously, such flows were classified as Cash from investing activities. On January 1, 2019, we adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The ASU requires certain changes to the presentation of hedge accounting in the financial statements and some new or modified disclosures. The ASU also simplifies the application of hedge accounting and expands the strategies that qualify for hedge accounting. Upon adoption, we recorded an increase to retained earnings and a decrease to borrowings of $52 million |
BUSINESSES HELD FOR SALE AND _2
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Financial Information for Assets and Liabilities of Businesses Held for Sale | ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE (In millions) June 30, 2019 December 31, 2018 Current receivables $ 512 $ 184 Inventories 784 529 Property, plant, and equipment – net and Operating leases 895 423 Goodwill and Other intangible assets - net 6,344 884 Valuation allowance (647 ) (1,013 ) Deferred tax asset 880 — Other assets 438 623 Assets of businesses held for sale $ 9,206 $ 1,630 Accounts payable & Progress collections and deferred income $ 850 $ 428 Non-current compensation and benefits 367 152 Other liabilities 261 128 Liabilities of businesses held for sale $ 1,478 $ 708 |
Financial Information for Discontinued Operations | RESULTS OF DISCONTINUED OPERATIONS (In millions) Three months ended June 30 Six months ended June 30 2019 2018 2019 2018 Sales of goods and services $ — $ 942 $ 549 $ 1,814 GE Capital revenues and other income (loss) (48 ) 4 (9 ) (1,468 ) Cost of goods and services sold — (675 ) (478 ) (1,290 ) Other costs and expenses (15 ) (332 ) (99 ) (556 ) Earnings (loss) of discontinued operations before income taxes $ (64 ) $ (60 ) $ (37 ) $ (1,499 ) Benefit (provision) for income taxes 295 (3 ) 308 (7 ) Earnings (loss) of discontinued operations, net of taxes $ 231 $ (63 ) $ 270 $ (1,507 ) Gain (loss) on disposal before income taxes $ — $ — $ 3,517 $ 4 Benefit (provision) for income taxes — — (964 ) (1 ) Gain (loss) on disposal, net of taxes $ — $ — $ 2,553 $ 3 Earnings (loss) from discontinued operations, net of taxes $ 231 $ (63 ) $ 2,823 $ (1,504 ) Gains (loss) on disposals, net of taxes - Transportation and other Industrial — — 2,508 — Gains (loss) on disposals, net of taxes - Capital — — 45 3 Earnings (loss) from discontinued operations, net of taxes - Transportation and other Industrial (7 ) 3 2,550 115 Earnings (loss) from discontinued operations, net of taxes - Capital 238 (66 ) 273 (1,618 ) ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS (In millions) June 30, 2019 December 31, 2018 Cash, cash equivalents and restricted cash $ 594 $ 701 Investment securities 206 195 Current receivables 84 389 Inventories — 832 Financing receivables held for sale 2,599 2,745 Property, plant and equipment - net and Operating leases 147 910 Goodwill and intangible assets - net — 1,146 Deferred income taxes 346 1,175 All other assets 215 1,163 Assets of discontinued operations $ 4,191 $ 9,257 Accounts payable and Progress collections and deferred income $ 31 $ 1,248 Operating lease liabilities 227 — Other GE current liabilities 98 590 All other liabilities 27 1,909 Liabilities of discontinued operations $ 382 $ 3,747 Assets and liabilities of discontinued operations included $4,573 million of assets and $1,871 million of liabilities, respectively, related to our Transportation business as of December 31, 2018, which we classified as discontinued operations in the first quarter of 2019. Included within all other liabilities of discontinued operations at June 30, 2019 and December 31, 2018 are intercompany tax receivables in the amount of $ 804 million and $1,141 million , respectively, primarily related to the financial services businesses that were part of the GE Capital Exit Plan, that are offset within all other liabilities of consolidated GE. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities | June 30, 2019 December 31, 2018 (In millions) Amortized Gross Gross Estimated Amortized Gross Gross Estimated Debt U.S. corporate $ 22,663 $ 3,866 $ (26 ) $ 26,504 $ 21,306 $ 2,257 $ (357 ) $ 23,206 Non-U.S. corporate 2,186 187 — 2,373 1,906 53 (76 ) 1,883 State and municipal 3,199 572 (24 ) 3,748 3,320 367 (54 ) 3,633 Mortgage and asset-backed 3,048 128 (4 ) 3,172 3,325 51 (54 ) 3,322 Government and agencies 1,696 130 — 1,825 1,603 63 (20 ) 1,645 Equity 1,761 — — 1,761 146 — — 146 Total $ 34,554 $ 4,884 $ (55 ) $ 39,383 $ 31,605 $ 2,792 $ (561 ) $ 33,835 |
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 $ 410 $ 415 After one year through five years 3,000 3,153 After five years through ten years 6,565 7,429 After ten years 19,769 23,453 |
CURRENT AND LONG-TERM RECEIVA_2
CURRENT AND LONG-TERM RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Receivables | Activity related to customer receivables sold by GE is as follows: 2019 2018 Six months ended June 30 (In millions) GE Capital (a) Third Parties GE Capital (a) Third Parties Balance at January 1 $ 4,386 $ 7,885 $ 9,877 $ 5,718 GE sales to GE Capital 19,247 — 24,430 — GE sales to third parties — 2,079 — 2,255 GE Capital sales to third parties (13,836 ) 13,836 (14,201 ) 14,201 Collections and other (6,378 ) (16,968 ) (14,011 ) (16,184 ) Reclassification from long-term customer receivables 209 — 415 — Balance at June 30 $ 3,628 $ 6,832 $ 6,510 $ 5,989 (a) As of June 30, 2019 and 2018, $ 1,076 million and $ 2,283 million , respectively, of the current receivables purchased and retained by GE Capital, had been sold by GE to GE Capital with recourse (i.e., GE retains all or some risk of default). The effect on GE CFOA of claims by GE Capital on receivables sold with recourse has been insignificant for the six months ended June 30, 2019 and 2018. Consolidated GE (In millions) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Long-term customer receivables $ 1,222 $ 1,444 $ 623 $ 561 Long-term sundry receivables 1,822 1,410 2,197 1,750 Allowance for losses (193 ) (202 ) (193 ) (202 ) Total long-term receivables $ 2,851 $ 2,652 $ 2,628 $ 2,109 Activity related to long-term customer receivables purchased by GE Capital is as follows: 2019 2018 Six months ended June 30 (In millions) GE Capital (a) GE Capital (a) Balance at January 1 $ 883 $ 1,947 GE sales to GE Capital — 112 Sales, collections, accretion and other (75 ) (170 ) Reclassification to current customer receivables (209 ) (415 ) Balance at June 30 $ 599 $ 1,475 (a) As of June 30, 2019 and 2018, $430 million and $885 million, respectively, of long-term customer receivables purchased and retained by GE Capital, had been sold by GE to GE Capital with recourse (i.e., GE retains all or some risk of default). The effect on GE CFOA of claims by GE Capital on receivables sold with recourse has been insignificant for the six months ended June 30, 2019 and 2018. CURRENT RECEIVABLES Consolidated GE (In millions) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Customer receivables $ 15,998 $ 15,716 $ 12,371 $ 11,330 Sundry receivables 5,265 4,765 5,600 4,763 Allowance for losses (1,111 ) (997 ) (1,106 ) (989 ) Total current receivables $ 20,152 $ 19,484 $ 16,864 $ 15,103 Six months ended June 30 (In millions) 2019 2018 Customer receivables sold to receivables facilities $ 10,786 $ 11,355 Total cash purchase price for customer receivables 10,495 8,584 Cash collections re-invested to purchase customer receivables 8,830 7,390 Non-cash increases to deferred purchase price $ 137 $ 2,716 Cash payments received on deferred purchase price 220 2,691 Consolidated GE Capital (In millions) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Loans, net of deferred income $ 1,344 $ 5,118 $ 5,908 $ 10,834 Investment in financing leases, net of deferred income 2,139 2,639 2,316 2,822 3,483 7,757 8,224 13,656 Allowance for losses (47 ) (58 ) (14 ) (28 ) Financing receivables – net $ 3,436 $ 7,699 $ 8,210 $ 13,628 |
FINANCING RECEIVABLES AND ALL_2
FINANCING RECEIVABLES AND ALLOWANCES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Financing Receivables, Net | Activity related to customer receivables sold by GE is as follows: 2019 2018 Six months ended June 30 (In millions) GE Capital (a) Third Parties GE Capital (a) Third Parties Balance at January 1 $ 4,386 $ 7,885 $ 9,877 $ 5,718 GE sales to GE Capital 19,247 — 24,430 — GE sales to third parties — 2,079 — 2,255 GE Capital sales to third parties (13,836 ) 13,836 (14,201 ) 14,201 Collections and other (6,378 ) (16,968 ) (14,011 ) (16,184 ) Reclassification from long-term customer receivables 209 — 415 — Balance at June 30 $ 3,628 $ 6,832 $ 6,510 $ 5,989 (a) As of June 30, 2019 and 2018, $ 1,076 million and $ 2,283 million , respectively, of the current receivables purchased and retained by GE Capital, had been sold by GE to GE Capital with recourse (i.e., GE retains all or some risk of default). The effect on GE CFOA of claims by GE Capital on receivables sold with recourse has been insignificant for the six months ended June 30, 2019 and 2018. Consolidated GE (In millions) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Long-term customer receivables $ 1,222 $ 1,444 $ 623 $ 561 Long-term sundry receivables 1,822 1,410 2,197 1,750 Allowance for losses (193 ) (202 ) (193 ) (202 ) Total long-term receivables $ 2,851 $ 2,652 $ 2,628 $ 2,109 Activity related to long-term customer receivables purchased by GE Capital is as follows: 2019 2018 Six months ended June 30 (In millions) GE Capital (a) GE Capital (a) Balance at January 1 $ 883 $ 1,947 GE sales to GE Capital — 112 Sales, collections, accretion and other (75 ) (170 ) Reclassification to current customer receivables (209 ) (415 ) Balance at June 30 $ 599 $ 1,475 (a) As of June 30, 2019 and 2018, $430 million and $885 million, respectively, of long-term customer receivables purchased and retained by GE Capital, had been sold by GE to GE Capital with recourse (i.e., GE retains all or some risk of default). The effect on GE CFOA of claims by GE Capital on receivables sold with recourse has been insignificant for the six months ended June 30, 2019 and 2018. CURRENT RECEIVABLES Consolidated GE (In millions) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Customer receivables $ 15,998 $ 15,716 $ 12,371 $ 11,330 Sundry receivables 5,265 4,765 5,600 4,763 Allowance for losses (1,111 ) (997 ) (1,106 ) (989 ) Total current receivables $ 20,152 $ 19,484 $ 16,864 $ 15,103 Six months ended June 30 (In millions) 2019 2018 Customer receivables sold to receivables facilities $ 10,786 $ 11,355 Total cash purchase price for customer receivables 10,495 8,584 Cash collections re-invested to purchase customer receivables 8,830 7,390 Non-cash increases to deferred purchase price $ 137 $ 2,716 Cash payments received on deferred purchase price 220 2,691 Consolidated GE Capital (In millions) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Loans, net of deferred income $ 1,344 $ 5,118 $ 5,908 $ 10,834 Investment in financing leases, net of deferred income 2,139 2,639 2,316 2,822 3,483 7,757 8,224 13,656 Allowance for losses (47 ) (58 ) (14 ) (28 ) Financing receivables – net $ 3,436 $ 7,699 $ 8,210 $ 13,628 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | (In millions) June 30, 2019 December 31, 2018 Raw materials and work in process $ 10,854 $ 10,102 Finished goods 8,928 8,086 Unbilled shipments 189 201 Total inventories $ 19,971 $ 18,389 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT (In millions) June 30, 2019 December 31, 2018 Original cost $ 85,962 $ 85,476 Less accumulated depreciation and amortization (36,019 ) (35,637 ) Property, plant and equipment – net $ 49,943 $ 49,839 |
Schedule of Operating Lease Expense and Supplemental Information | OPERATING LEASE EXPENSE Three months ended June 30 Six months ended June 30 (In millions) 2019 2018 2019 2018 Long-term (fixed) $ 256 $ 285 $ 529 $ 592 Long-term (variable) 35 57 90 120 Short-term 186 177 432 338 Total operating lease expense $ 476 $ 519 $ 1,052 $ 1,050 MATURITY OF LEASE LIABILITIES (In millions) Total 2019 (excluding six months ended June 30, 2019) $ 540 2020 949 2021 763 2022 631 2023 500 Thereafter 1,534 Total undiscounted lease payments 4,917 Less: imputed interest (843 ) Total lease liability as of June 30, 2019 $ 4,074 SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES (In millions) June 30, 2019 Operating cash flows used for operating leases $ 579 Right-of-use assets obtained in exchange for new lease liabilities $ 409 Weighted-average remaining lease term 7.2 years Weighted-average discount rate 5.0 % |
Schedule of Maturity of Lease Liabilities | MATURITY OF LEASE LIABILITIES (In millions) Total 2019 (excluding six months ended June 30, 2019) $ 540 2020 949 2021 763 2022 631 2023 500 Thereafter 1,534 Total undiscounted lease payments 4,917 Less: imputed interest (843 ) Total lease liability as of June 30, 2019 $ 4,074 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill Balances | GOODWILL (In millions) January 1, 2019 Dispositions and classification to held for sale Impairments Currency exchange Balance at Power $ 139 $ — $ — $ 6 $ 145 Renewable Energy 4,730 — (744 ) 72 4,058 Aviation 9,839 — — 24 9,863 Healthcare 17,226 (5,523 ) — 32 11,735 Oil & Gas 24,455 (37 ) — 301 24,719 Capital 904 — — (26 ) 878 Corporate 1,438 — — (564 ) 874 Total $ 58,730 $ (5,560 ) $ (744 ) $ (153 ) $ 52,272 |
Indefinite-lived Intangible Assets | OTHER INTANGIBLE ASSETS - NET (In millions) June 30, 2019 December 31, 2018 Intangible assets subject to amortization $ 14,412 $ 15,675 Indefinite-lived intangible assets 2,242 2,222 Total $ 16,653 $ 17,897 |
Intangible Assets Subject to Amortization | OTHER INTANGIBLE ASSETS - NET (In millions) June 30, 2019 December 31, 2018 Intangible assets subject to amortization $ 14,412 $ 15,675 Indefinite-lived intangible assets 2,242 2,222 Total $ 16,653 $ 17,897 |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenues | EQUIPMENT & SERVICES REVENUES Three months ended June 30 (In millions) 2019 2018 Equipment Services Total Equipment Services Total Power $ 1,463 $ 3,218 $ 4,681 $ 2,416 $ 3,845 $ 6,261 Renewable Energy 2,867 760 3,627 2,240 643 2,883 Aviation 3,033 4,844 7,877 2,909 4,610 7,519 Healthcare 2,838 2,095 4,934 2,812 2,166 4,978 Oil & Gas 2,361 3,592 5,953 2,189 3,366 5,554 Total Industrial Segment Revenues $ 12,561 $ 14,510 $ 27,071 $ 12,564 $ 14,631 $ 27,195 EQUIPMENT & SERVICES REVENUES Six months ended June 30 (In millions) 2019 2018 Equipment Services Total Equipment Services Total Power $ 3,039 $ 6,259 $ 9,298 $ 4,889 $ 7,319 $ 12,209 Renewable Energy 4,848 1,317 6,165 4,564 1,158 5,722 Aviation 6,146 9,685 15,831 5,448 9,183 14,631 Healthcare 5,492 4,125 9,616 5,419 4,261 9,680 Oil & Gas 4,630 6,940 11,569 4,417 6,522 10,939 Total Industrial Segment Revenues $ 24,155 $ 28,325 $ 52,479 $ 24,737 $ 28,444 $ 53,181 SUB-SEGMENT REVENUES Three months ended June 30 Six months ended June 30 (In millions) 2019 2018 2019 2018 Gas Power $ 3,248 $ 3,500 $ 6,510 $ 7,041 Power Portfolio 1,434 2,761 2,788 5,168 Power $ 4,681 $ 6,261 $ 9,298 $ 12,209 Onshore Wind $ 2,449 $ 1,336 $ 3,891 $ 2,596 Grid Solutions equipment and services 938 1,230 1,872 2,423 Hydro and Offshore Wind 239 317 402 703 Renewable Energy $ 3,627 $ 2,883 $ 6,165 $ 5,722 Commercial Engines & Services $ 5,848 $ 5,534 $ 11,797 $ 10,806 Military 976 1,073 2,013 2,044 Systems & Other 1,052 911 2,021 1,780 Aviation $ 7,877 $ 7,519 $ 15,831 $ 14,631 Healthcare Systems $ 3,589 $ 3,735 $ 7,020 $ 7,311 Life Sciences 1,345 1,244 2,595 2,369 Healthcare $ 4,934 $ 4,978 $ 9,616 $ 9,680 Turbomachinery & Process Solutions (TPS) $ 1,365 $ 1,391 $ 2,669 $ 2,839 Oilfield Services (OFS) 3,263 2,884 6,249 5,561 Oilfield Equipment (OFE) 693 617 1,428 1,281 Digital Solutions 632 662 1,223 1,258 Oil & Gas $ 5,953 $ 5,554 $ 11,569 $ 10,939 Total Industrial Segment Revenues $ 27,071 $ 27,195 $ 52,479 $ 53,181 Capital(a) 2,321 2,429 4,548 4,602 Corporate items and eliminations (561 ) (462 ) (910 ) (833 ) Consolidated Revenues $ 28,831 $ 29,162 $ 56,117 $ 56,950 (a) |
CONTRACT AND OTHER DEFERRED A_2
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Contractors [Abstract] | |
Contract with Customer, Asset and Liability | June 30, 2019 (In millions) Power Aviation Oil & Gas Renewable Energy Healthcare and Other Total Revenues in excess of billings $ 5,661 $ 4,980 $ 669 $ — $ — $ 11,310 Billings in excess of revenues (1,576 ) (3,175 ) (245 ) — — (4,997 ) Long-term service agreements 4,084 1,805 424 — — 6,314 Short-term and other service agreements 135 338 177 35 297 983 Equipment contract revenues 2,740 79 891 1,242 323 5,275 Total contract assets 6,959 2,222 1,493 1,278 620 12,571 Deferred inventory costs 909 374 129 1,463 338 3,213 Nonrecurring engineering costs 41 2,072 43 72 44 2,273 Customer advances and other — 1,119 — — — 1,119 Contract and other deferred assets $ 7,909 $ 5,787 $ 1,665 $ 2,813 $ 1,002 $ 19,176 December 31, 2018 (In millions) Revenues in excess of billings $ 5,368 $ 5,412 $ 703 $ — $ — $ 11,482 Billings in excess of revenues (1,693 ) (3,297 ) (187 ) — — (5,176 ) Long-term service agreements 3,675 2,115 516 — — 6,306 Short-term and other service agreements 99 272 182 45 251 850 Equipment contract revenues 2,829 80 902 1,129 384 5,324 Total contract assets 6,603 2,468 1,600 1,174 635 12,480 Deferred inventory costs 1,003 673 179 1,267 365 3,488 Nonrecurring engineering costs 43 1,916 22 85 51 2,117 Customer advances and other — 1,146 — — — 1,146 Contract and other deferred assets $ 7,650 $ 6,204 $ 1,800 $ 2,525 $ 1,052 $ 19,231 June 30, 2019 (In millions) Power Aviation Oil & Gas Renewable Energy Healthcare and Other Total Progress collections on equipment contracts $ 5,619 $ 93 $ 1,336 $ 1,136 $ — $ 8,184 Other progress collections 552 4,501 529 3,374 487 9,443 Total progress collections $ 6,171 $ 4,594 $ 1,865 $ 4,510 $ 487 $ 17,627 Deferred income 61 1,432 126 266 1,627 3,510 GE Progress collections and deferred income $ 6,231 $ 6,026 $ 1,991 $ 4,776 $ 2,113 $ 21,138 December 31, 2018 (In millions) Progress collections on equipment contracts $ 5,536 $ 114 $ 878 $ 1,415 $ — $ 7,943 Other progress collections 691 4,034 552 3,468 500 9,245 Total progress collections $ 6,227 $ 4,148 $ 1,430 $ 4,883 $ 500 $ 17,188 Deferred income 112 1,338 164 260 1,770 3,645 GE Progress collections and deferred income $ 6,339 $ 5,486 $ 1,594 $ 5,143 $ 2,271 $ 20,833 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | (In millions) June 30, 2019 December 31, 2018 Short-term borrowings Commercial paper $ 3,002 $ 3,005 Current portion of long-term borrowings 804 103 Current portion of long-term borrowings assumed by GE 6,962 4,207 Other 1,749 2,084 Total GE short-term borrowings $ 12,518 $ 9,400 Current portion of long-term borrowings $ 3,743 $ 3,984 Intercompany payable to GE 2,393 2,684 Other 343 1,015 Total GE Capital short-term borrowings $ 6,479 $ 7,684 Eliminations (3,376 ) (4,262 ) Total short-term borrowings $ 15,620 $ 12,821 Long-term borrowings Senior notes $ 25,792 $ 26,564 Senior notes assumed by GE 25,171 29,218 Subordinated notes assumed by GE 2,839 2,836 Other 502 524 Total GE long-term borrowings $ 54,304 $ 59,143 Senior notes $ 33,468 $ 35,105 Subordinated notes 176 165 Intercompany payable to GE 18,830 19,828 Other 849 885 Total GE Capital long-term borrowings $ 53,324 $ 55,982 Eliminations (18,893 ) (19,892 ) Total long-term borrowings $ 88,735 $ 95,234 Non-recourse borrowings of consolidated securitization entities 1,423 1,875 Total borrowings $ 105,778 $ 109,930 |
INSURANCE LIABILITIES AND ANN_2
INSURANCE LIABILITIES AND ANNUITY BENEFITS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Insurance [Abstract] | |
Schedule of Insurance and Investment Contract Liabilities | June 30, 2019 (In millions) Long-term care insurance contracts Structured settlement annuities & life insurance contracts Other Other adjustments(a) Total Future policy benefit reserves $ 16,118 $ 9,371 $ 166 $ 4,792 $ 30,447 Claim reserves 4,094 238 1,172 — 5,504 Investment contracts — 1,195 1,103 — 2,298 Unearned premiums and other 31 199 160 — 390 20,243 11,003 2,601 4,792 38,639 Eliminations — — (514 ) — (514 ) Total $ 20,243 $ 11,003 $ 2,087 $ 4,792 $ 38,125 December 31, 2018 (In millions) Future policy benefit reserves $ 16,029 $ 9,495 $ 169 $ 2,247 $ 27,940 Claim reserves 3,917 230 1,178 — 5,324 Investment contracts — 1,239 1,149 — 2,388 Unearned premiums and other 34 205 103 — 342 19,980 11,169 2,599 2,247 35,994 Eliminations — — (432 ) — (432 ) Total $ 19,980 $ 11,169 $ 2,167 $ 2,247 $ 35,562 (a) To the extent that unrealized gains on specific investment securities supporting our insurance contracts would result in a premium deficiency should those gains be realized, an increase in future policy benefit reserves is recorded, with an after-tax reduction of net unrealized gains recognized through "Accumulated other comprehensive income (loss)" in our consolidated Statement of Earnings (Loss). |
POSTRETIREMENT BENEFIT PLANS (T
POSTRETIREMENT BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Effect on Operations of Pension Plans | EFFECT ON OPERATIONS OF PENSION PLANS Principal pension plans Three months ended June 30 Six months ended June 30 (In millions) 2019 2018 2019 2018 Service cost for benefits earned $ 160 $ 203 $ 318 $ 435 Prior service cost amortization 34 36 67 72 Expected return on plan assets (862 ) (820 ) (1,725 ) (1,640 ) Interest cost on benefit obligations 723 667 1,449 1,333 Net actuarial loss amortization 770 943 1,533 1,894 Curtailment loss — — 51 — Pension plans cost $ 825 $ 1,029 $ 1,693 $ 2,094 Curtailment loss in the six months ended June 30, 2019, results from the spin-off and subsequent merger of our Transportation segment with Wabtec which is included in "Earnings (loss) from discontinued operations" in our consolidated Statement of Earnings (Loss). Other pension plans Three months ended June 30 Six months ended June 30 (In millions) 2019 2018 2019 2018 Service cost for benefits earned $ 70 $ 99 $ 136 $ 194 Prior service cost (credit) amortization 1 (2 ) 1 (2 ) Expected return on plan assets (320 ) (359 ) (629 ) (717 ) Interest cost on benefit obligations 156 156 313 312 Net actuarial loss amortization 84 83 167 165 Settlement/curtailment loss (gain) 7 (6 ) 16 (6 ) Pension plans cost (income) $ (2 ) $ (29 ) $ 4 $ (54 ) |
SHAREOWNERS_ EQUITY (Tables)
SHAREOWNERS’ EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Shareowners' Equity | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Three months ended June 30 Six months ended June 30 (In millions) 2019 2018 2019 2018 Beginning balance $ (16 ) $ (4 ) $ (39 ) $ (102 ) Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes of $(23), $(17), $15 and $48(a) 94 32 121 140 Reclassifications from OCI – net of deferred taxes of $(5), $0, $(6) and $(2) (18 ) (7 ) (22 ) (16 ) Other comprehensive income (loss) 76 25 99 124 Less OCI attributable to noncontrolling interests — — 1 1 Investment securities ending balance $ 60 $ 21 $ 60 $ 21 Beginning balance $ (5,810 ) $ (3,988 ) $ (6,134 ) $ (4,661 ) OCI before reclassifications – net of deferred taxes of $13, $190, $39 and $(241) (308 ) (2,049 ) (1 ) (1,217 ) Reclassifications from OCI – net of deferred taxes of $0, $0, $(4) and $0(b) 167 380 284 378 Other comprehensive income (loss) (141 ) (1,669 ) 283 (839 ) Less OCI attributable to noncontrolling interests (77 ) (211 ) 22 (54 ) Currency translation adjustments ending balance $ (5,874 ) $ (5,446 ) $ (5,874 ) $ (5,446 ) Beginning balance $ 49 $ 114 $ 13 $ 62 OCI before reclassifications – net of deferred taxes of $(8), $(39), $3 and $(7) (50 ) (131 ) (16 ) (26 ) Reclassifications from OCI – net of deferred taxes of $4, $22, $1 and $7 25 50 28 — Other comprehensive income (loss) (25 ) (81 ) 12 (26 ) Less OCI attributable to noncontrolling interests (1 ) (2 ) 1 — Cash flow hedges ending balance $ 26 $ 36 $ 26 $ 36 Beginning balance $ (7,708 ) $ (8,984 ) $ (8,254 ) $ (9,702 ) OCI before reclassifications – net of deferred taxes of $13, $56, $(35) and $55 7 182 (111 ) 126 Reclassifications from OCI – net of deferred taxes of $164, $218, $347 and $436 632 758 1,294 1,533 Other comprehensive income (loss) 639 940 1,183 1,659 Less OCI attributable to noncontrolling interests (6 ) 1 (8 ) — Benefit plans ending balance $ (7,063 ) $ (8,043 ) $ (7,063 ) $ (8,043 ) Accumulated other comprehensive income (loss) at June 30 $ (12,852 ) $ (13,432 ) $ (12,852 ) $ (13,432 ) (a) Included adjustments of $(1,054) million and $534 million for the three months ended June 30, 2019 and 2018, respectively and $(2,011) million and $1,472 million for the six months ended June 30, 2019 and 2018, respectively, related to insurance liabilities and annuity benefits in our run-off insurance operations to reflect the effects that would have been recognized had the related unrealized investment security gains been realized. See Note 12 for further information. (b) Currency translation gains and losses included $116 million for the six months ended June 30, 2019 in earnings (loss) from discontinued operations, net of taxes. |
EARNINGS PER SHARE INFORMATION
EARNINGS PER SHARE INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three months ended June 30 2019 2018 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Earnings from continuing operations for per-share calculation $ (103 ) $ (103 ) $ 862 $ 863 Preferred stock dividends (188 ) (188 ) (185 ) (185 ) Earnings from continuing operations attributable to (292 ) (292 ) 677 678 Earnings (loss) from discontinued operations 230 230 (69 ) (68 ) Net earnings (loss) attributable to GE common $ (61 ) $ (61 ) $ 614 $ 615 Shares of GE common stock outstanding 8,724 8,724 8,688 8,688 Employee compensation-related shares (including stock options) — — 11 — Total average equivalent shares 8,724 8,724 8,699 8,688 Earnings per share from continuing operations $ (0.03 ) $ (0.03 ) $ 0.08 $ 0.08 Earnings (loss) per share from discontinued operations 0.03 0.03 (0.01 ) (0.01 ) Net earnings (loss) per share (0.01 ) (0.01 ) 0.07 0.07 Six months ended June 30 2019 2018 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Earnings from continuing operations for per-share calculation $ 873 $ 888 $ 1,156 $ 1,157 Preferred stock dividends (228 ) (228 ) (222 ) (222 ) Earnings from continuing operations attributable to $ 645 $ 661 $ 934 $ 935 Earnings (loss) from discontinued operations 2,800 2,816 (1,515 ) (1,514 ) Net earnings attributable to GE common $ 3,461 $ 3,476 $ (574 ) $ (573 ) Shares of GE common stock outstanding 8,716 8,716 8,686 8,686 Employee compensation-related shares (including stock options) 13 — 9 — Total average equivalent shares 8,730 8,716 8,694 8,686 Earnings from continuing operations $ 0.07 $ 0.08 $ 0.11 $ 0.11 Loss from discontinued operations 0.32 0.32 (0.17 ) (0.17 ) Net earnings 0.40 0.40 (0.07 ) (0.07 ) (a) Included in 2019 is a dilutive adjustment for the change in income for forward purchase contracts that may be settled in stock. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Estimated Fair Value of Assets and Liabilities | The following table provides information about assets and liabilities not carried at fair value and excludes finance leases, equity securities without readily determinable fair value and non-financial assets and liabilities. Substantially all of these assets are considered to be Level 3 and the vast majority of our liabilities’ fair value are considered Level 2. June 30, 2019 December 31, 2018 (In millions) Carrying Estimated Carrying Estimated Assets Loans and other receivables $ 8,292 $ 8,358 $ 8,812 $ 8,830 Liabilities Borrowings (Note 11) 105,778 110,233 109,930 106,221 Investment contracts (Note 12) 2,298 2,656 2,388 2,630 |
Fair Value of Derivative Assets | FAIR VALUE OF DERIVATIVES June 30, 2019 December 31, 2018 (In millions) Gross Notional All other assets All other liabilities Gross Notional All other assets All other liabilities Interest rate contracts $ 21,518 $ 1,654 $ 3 $ 22,904 $ 1,335 $ 23 Currency exchange contracts 6,313 97 104 7,970 175 121 Derivatives accounted for as hedges $ 27,831 $ 1,751 $ 106 $ 30,873 $ 1,511 $ 145 Interest rate contracts $ 4,934 $ 46 $ 12 $ 6,198 $ 28 $ 2 Currency exchange contracts 65,872 555 1,093 83,841 727 1,546 Other contracts 2,267 57 78 2,622 13 209 Derivatives not accounted for as hedges $ 73,072 $ 658 $ 1,183 $ 92,662 $ 769 $ 1,757 Gross derivatives $ 100,903 $ 2,409 $ 1,290 $ 123,535 $ 2,279 $ 1,902 Netting and credit adjustments $ (683 ) $ (684 ) $ (959 ) $ (967 ) Cash collateral adjustments (1,230 ) (278 ) (1,042 ) (267 ) Net derivatives recognized in statement of financial position $ 495 $ 327 $ 279 $ 669 Net accrued interest $ 185 $ 3 $ 205 $ 1 Securities held as collateral (460 ) — (235 ) — Net amount $ 220 $ 330 $ 248 $ 670 |
Fair Value of Derivative Liabilities | FAIR VALUE OF DERIVATIVES June 30, 2019 December 31, 2018 (In millions) Gross Notional All other assets All other liabilities Gross Notional All other assets All other liabilities Interest rate contracts $ 21,518 $ 1,654 $ 3 $ 22,904 $ 1,335 $ 23 Currency exchange contracts 6,313 97 104 7,970 175 121 Derivatives accounted for as hedges $ 27,831 $ 1,751 $ 106 $ 30,873 $ 1,511 $ 145 Interest rate contracts $ 4,934 $ 46 $ 12 $ 6,198 $ 28 $ 2 Currency exchange contracts 65,872 555 1,093 83,841 727 1,546 Other contracts 2,267 57 78 2,622 13 209 Derivatives not accounted for as hedges $ 73,072 $ 658 $ 1,183 $ 92,662 $ 769 $ 1,757 Gross derivatives $ 100,903 $ 2,409 $ 1,290 $ 123,535 $ 2,279 $ 1,902 Netting and credit adjustments $ (683 ) $ (684 ) $ (959 ) $ (967 ) Cash collateral adjustments (1,230 ) (278 ) (1,042 ) (267 ) Net derivatives recognized in statement of financial position $ 495 $ 327 $ 279 $ 669 Net accrued interest $ 185 $ 3 $ 205 $ 1 Securities held as collateral (460 ) — (235 ) — Net amount $ 220 $ 330 $ 248 $ 670 |
Effects of Derivatives on Earnings | The table below presents the effect of our derivative financial instruments in the consolidated Statement of Earnings: Three months ended June 30, 2019 Three months ended June 30, 2018 (In millions) Revenues Cost of sales Interest Expense SG&A Other Income Revenues Cost of sales Interest Expense SG&A Other Income Total amounts presented in the consolidated Statement of Earnings $ 28,831 $ 21,817 $ 991 $ 4,184 $ (8 ) $ 29,162 $ 21,749 $ 1,291 $ 4,346 $ 886 Total effect of cash flow hedges $ (15 ) $ (5 ) $ (9 ) $ — $ — $ (72 ) $ 9 $ (10 ) $ — $ — Hedged items $ (659 ) $ 195 Derivatives designated as hedging instruments 646 (225 ) Total effect of fair value hedges $ (14 ) $ (30 ) Interest rate contracts $ (16 ) $ — $ — $ — $ — $ (20 ) $ — $ — $ — $ — Currency exchange contracts (370 ) (52 ) (76 ) 1 (33 ) (1,159 ) (249 ) 69 130 (52 ) Other — — 27 — (11 ) 4 — 25 — 11 Total effect of derivatives not designated as hedges $ (385 ) $ (52 ) $ (49 ) $ 1 $ (43 ) $ (1,175 ) $ (249 ) $ 94 $ 130 $ (40 ) Six months ended June 30, 2019 Six months ended June 30, 2018 (In millions) Revenues Cost of sales Interest Expense SG&A Other Income Revenues Cost of sales Interest Expense SG&A Other Income Total amounts presented in the consolidated Statement of Earnings $ 56,117 $ 42,170 $ 2,123 $ 8,330 $ 870 $ 56,950 $ 42,659 $ 2,573 $ 8,434 $ 1,091 Total effect of cash flow hedges $ 5 $ (14 ) $ (19 ) $ (1 ) $ — $ (4 ) $ 16 $ (20 ) $ — $ — Hedged items $ (1,186 ) $ 866 Derivatives designated as hedging instruments 1,161 (922 ) Total effect of fair value hedges $ (25 ) $ (56 ) Interest rate contracts $ (36 ) $ — $ — $ — $ — $ (34 ) $ — $ — $ — $ — Currency exchange contracts 83 (44 ) (139 ) (44 ) (29 ) (506 ) (243 ) — — (1 ) Other — — 123 — 3 (1 ) — (10 ) — 21 Total effect of derivatives not designated as hedges $ 48 $ (44 ) $ (16 ) $ (44 ) $ (27 ) $ (542 ) $ (243 ) $ (10 ) $ — $ 19 |
COMMITMENTS, GUARANTEES, PROD_2
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranties | We provide for estimated product warranty expenses when we sell the related products. Because warranty estimates are forecasts that are based on the best available information, mostly historical claims experience, claims costs may differ from amounts provided. An analysis of changes in the liability for product warranties follows . Six months ended June 30 (In millions) 2019 2018 Balance at January 1 $ 2,428 $ 2,268 Current-year provisions 328 349 Expenditures (332 ) (417 ) Other changes 38 144 Balance as of June 30 $ 2,462 $ 2,344 |
CASH FLOWS INFORMATION (Tables)
CASH FLOWS INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flows Information | GE Six months ended June 30 (In millions) 2019 2018 Increase (decrease) in employee benefit liabilities $ (861 ) $ (506 ) Other gains on investing activities (45 ) (449 ) Restructuring and other charges(a) 721 1,198 Restructuring and other cash expenditures (775 ) (807 ) Increase (decrease) in equipment project accruals (218 ) (831 ) Other(b) (186 ) (289 ) All other operating activities $ (1,364 ) $ (1,684 ) Derivative settlements (net) $ 30 $ (489 ) Investments in intangible assets (net) (13 ) (533 ) Other investments (net)(c) 1,866 10 Other(d) (326 ) 130 All other investing activities $ 1,557 $ (882 ) Acquisition of noncontrolling interests $ (28 ) $ (627 ) Dividends paid to noncontrolling interests (232 ) (159 ) Other (27 ) 54 All other financing activities $ (287 ) $ (732 ) (a) Excludes non-cash adjustments reflected as "Depreciation and amortization of property, plant and equipment" or "Amortization of intangible assets" in our consolidated Statement of Cash Flows. (b) Included other adjustments to net income, such as write-downs of assets and the impacts of acquisition accounting and changes in other assets and other liabilities classified as operating activities, such as the timing of payments of customer allowances. (c) Primarily included proceeds from the secondary offering of Wabtec common stock shares of $1,799 million in the second quarter of 2019. (d) Other primarily included net activity related to settlements between our continuing operations and businesses in discontinued operations (primarily our Transportation segment) in 2019. |
INTERCOMPANY TRANSACTIONS (Tabl
INTERCOMPANY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Intercompany Eliminations | Presented below is a walk of intercompany eliminations from the combined GE and GE Capital totals to the consolidated cash flows. Six months ended June 30 (In millions) 2019 2018 Combined $ 437 $ (1,003 ) GE current receivables sold to GE Capital 557 491 GE long-term receivables sold to GE Capital 269 738 Supply chain finance programs 489 145 Other reclassifications and eliminations 18 (752 ) Total cash from (used for) operating activities - continuing operations $ 1,770 $ (382 ) Combined $ 2,890 $ 5,752 GE current receivables sold to GE Capital (1,294 ) (1,469 ) GE long-term receivables sold to GE Capital (269 ) (738 ) GE Capital long-term loans to GE — 920 Supply chain finance programs (489 ) (145 ) Capital contribution from GE to GE Capital 1,500 — Other reclassifications and eliminations (692 ) 946 Total cash from (used for) investing activities - continuing operations $ 1,646 $ 5,266 Combined $ (6,206 ) $ (20,775 ) GE current receivables sold to GE Capital 737 978 GE Capital long-term loans to GE — (920 ) Capital contribution from GE to GE Capital (1,500 ) — Other reclassifications and eliminations 674 (193 ) Total cash from (used for) financing activities - continuing operations $ (6,294 ) $ (20,911 ) |
GUARANTOR FINANCIAL INFORMATI_2
GUARANTOR FINANCIAL INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Statement of Earnings (Loss) and Comprehensive Income (Loss) | CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED JUNE 30, 2019 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Sales of goods and services $ 8,245 $ — $ — $ 25,141 $ (6,598 ) $ 26,788 GE Capital revenues from services — 245 11 2,052 (265 ) 2,043 Total revenues 8,245 245 11 27,193 (6,863 ) 28,831 Interest and other financial charges 541 241 332 110 (234 ) 991 Other costs and expenses 4,663 — 38 5,931 17,473 28,106 Total costs and expenses 5,205 241 371 6,042 17,239 29,097 Other income (loss) 3,529 — — (8,832 ) 5,295 (8 ) Equity in earnings (loss) of affiliates (6,727 ) — 469 16,162 (9,904 ) — Earnings (loss) from continuing operations before income taxes (159 ) 4 110 28,481 (28,711 ) (274 ) Benefit (provision) for income taxes 48 (1 ) — 366 (266 ) 148 Earnings (loss) from continuing operations (110 ) 4 110 28,847 (28,977 ) (126 ) Earnings (loss) from discontinued operations, net of taxes 238 — 2 — (9 ) 231 Net earnings (loss) 127 4 112 28,847 (28,986 ) 104 Less net earnings (loss) attributable to noncontrolling interests — — — 4 (28 ) (23 ) Net earnings (loss) attributable to the Company 127 4 112 28,843 (28,959 ) 127 Other comprehensive income (loss) 633 — (22 ) — 22 633 Comprehensive income (loss) attributable to the Company $ 760 $ 4 $ 89 $ 28,843 $ (28,936 ) $ 760 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED JUNE 30, 2018 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Sales of goods and services $ 7,947 $ — $ — $ 41,000 $ (21,796 ) $ 27,151 GE Capital revenues from services — 233 326 2,593 (1,141 ) 2,011 Total revenues 7,947 233 326 43,593 (22,937 ) 29,162 Interest and other financial charges 74 230 617 872 (502 ) 1,291 Other costs and expenses 13,486 — — 38,881 (24,845 ) 27,520 Total costs and expenses 13,560 230 617 39,753 (25,347 ) 28,812 Other income (loss) 1,621 — — 2,970 (3,705 ) 886 Equity in earnings (loss) of affiliates 4,442 — (127 ) 12,249 (16,563 ) — Earnings (loss) from continuing operations before income taxes 450 3 (418 ) 19,059 (17,858 ) 1,236 Benefit (provision) for income taxes 471 — — (1,162 ) 188 (504 ) Earnings (loss) from continuing operations 921 3 (418 ) 17,897 (17,670 ) 732 Earnings (loss) from discontinued operations, net of taxes (121 ) — (63 ) — 121 (63 ) Net earnings (loss) 800 3 (482 ) 17,897 (17,550 ) 669 Less net earnings (loss) attributable to noncontrolling interests — — — (116 ) (16 ) (132 ) Net earnings (loss) attributable to the Company 800 3 (482 ) 18,013 (17,534 ) 800 Other comprehensive income (loss) (571 ) — (94 ) (2,509 ) 2,603 (571 ) Comprehensive income (loss) attributable to the Company $ 229 $ 3 $ (575 ) $ 15,503 $ (14,931 ) $ 229 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2019 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Sales of goods and services $ 12,825 $ — $ — $ 63,597 $ (24,292 ) $ 52,130 GE Capital revenues from services — 479 86 4,631 (1,209 ) 3,987 Total revenues 12,825 479 86 68,228 (25,501 ) 56,117 Interest and other financial charges 632 472 712 750 (442 ) 2,123 Other costs and expenses 13,445 — 39 44,748 (4,369 ) 53,863 Total costs and expenses 14,077 472 750 45,499 (4,811 ) 55,986 Other income (loss) (3,211 ) — — 8,131 (4,049 ) 870 Equity in earnings (loss) of affiliates 8,198 — 845 27,175 (36,218 ) — Earnings (loss) from continuing operations before income taxes 3,735 7 181 58,036 (60,957 ) 1,001 Benefit (provision) for income taxes (287 ) (1 ) — (292 ) 506 (74 ) Earnings (loss) from continuing operations 3,448 6 181 57,744 (60,452 ) 926 Earnings (loss) from discontinued operations, net of taxes 268 — 2 — 2,553 2,823 Net earnings (loss) 3,716 6 182 57,744 (57,899 ) 3,749 Less net earnings (loss) attributable to noncontrolling interests — — — 4 30 34 Net earnings (loss) attributable to the Company 3,716 6 182 57,740 (57,929 ) 3,716 Other comprehensive income (loss) 1,562 — (1,104 ) (443 ) 1,547 1,562 Comprehensive income (loss) attributable to the Company $ 5,277 $ 6 $ (922 ) $ 57,297 $ (56,382 ) $ 5,277 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2018 (UNAUDITED) (in millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Sales of goods and services $ 15,651 $ — $ — $ 78,980 $ (41,478 ) $ 53,153 GE Capital revenues from services — 441 551 4,151 (1,346 ) 3,797 Total revenues 15,651 441 551 83,131 (42,824 ) 56,950 Interest and other financial charges (8 ) 436 1,164 1,702 (720 ) 2,573 Other costs and expenses 23,085 — — 77,458 (46,588 ) 53,954 Total costs and expenses 23,077 436 1,163 79,160 (47,308 ) 56,527 Other income (loss) 1,896 — — 1,097 (1,902 ) 1,091 Equity in earnings (loss) of affiliates 7,034 — 493 12,090 (19,617 ) — Earnings (loss) from continuing operations before income taxes 1,503 5 (119 ) 17,159 (17,035 ) 1,513 Benefit (provision) for income taxes (177 ) (1 ) — (562 ) 286 (454 ) Earnings (loss) from continuing operations 1,326 4 (119 ) 16,596 (16,748 ) 1,060 Earnings (loss) from discontinued operations, net of taxes (1,673 ) — (81 ) 1 249 (1,504 ) Net earnings (loss) (347 ) 4 (200 ) 16,597 (16,500 ) (444 ) Less net earnings (loss) attributable to noncontrolling interests — — — (121 ) 24 (98 ) Net earnings (loss) attributable to the Company (347 ) 4 (200 ) 16,719 (16,523 ) (347 ) Other comprehensive income (loss) 971 — (55 ) (1,631 ) 1,686 971 Comprehensive income (loss) attributable to the Company $ 625 $ 4 $ (254 ) $ 15,087 $ (14,837 ) $ 625 |
Condensed Consolidating Statement of Financial Position | CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION JUNE 30, 2019 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash, cash equivalents and restricted cash $ 8,639 $ — $ — $ 23,913 $ (585 ) $ 31,968 Receivables - net 46,050 17,601 20 60,972 (94,452 ) 30,191 Investment in subsidiaries 183,102 — 45,441 710,678 (939,222 ) — All other assets 37,287 110 — 322,236 (109,684 ) 249,950 Total assets $ 275,079 $ 17,711 $ 45,462 $ 1,117,800 $ (1,143,943 ) $ 312,109 Short-term borrowings $ 143,998 $ — $ 6,619 $ 8,186 $ (143,183 ) $ 15,620 Long-term and non-recourse borrowings 47,641 16,559 25,402 44,901 (11,226 ) 90,158 All other liabilities 65,106 101 216 141,194 (56,415 ) 150,202 Total liabilities 256,745 16,660 32,237 194,281 (243,943 ) 255,980 Total liabilities and equity $ 275,079 $ 17,711 $ 45,462 $ 1,117,800 $ (1,143,943 ) $ 312,109 CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2018 (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash, cash equivalents and restricted cash $ 9,561 $ — $ — $ 25,975 $ (689 ) $ 34,847 Receivables - net 28,426 17,467 2,792 69,268 (84,095 ) 33,857 Investment in subsidiaries 215,434 — 45,832 733,535 (994,801 ) — All other assets 29,612 12 — 359,066 (147,810 ) 240,880 Total assets $ 283,033 $ 17,479 $ 48,623 $ 1,187,844 $ (1,227,394 ) $ 309,585 Short-term borrowings $ 150,426 $ — $ 9,854 $ 9,649 $ (157,108 ) $ 12,821 Long-term and non-recourse borrowings 59,800 16,115 24,341 41,066 (44,213 ) 97,109 All other liabilities 41,826 336 245 153,166 (47,399 ) 148,174 Total liabilities 252,052 16,452 34,439 203,881 (248,720 ) 258,104 Total liabilities and equity $ 283,033 $ 17,479 $ 48,623 $ 1,187,844 $ (1,227,394 ) $ 309,585 |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2019 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash from (used for) operating activities(a) $ (3,564 ) $ 341 $ (1,272 ) $ (558 ) $ 5,073 $ 20 Cash from (used for) investing activities $ 20,887 $ (341 ) $ 820 $ 105,020 $ (123,057 ) $ 3,329 Cash from (used for) financing activities $ (18,245 ) $ — $ 452 $ (106,630 ) $ 118,087 $ (6,336 ) Effect of currency exchange rate changes on cash, cash equivalents and restricted cash — — — 1 — 1 Increase (decrease) in cash, cash equivalents and restricted cash (922 ) — — (2,168 ) 104 (2,986 ) Cash, cash equivalents and restricted cash at beginning of year 9,561 — — 26,676 (689 ) 35,548 Cash, cash equivalents and restricted cash 8,639 — — 24,508 (585 ) 32,562 Less cash, cash equivalents and restricted cash of discontinued operations at June 30 — — — 594 — 594 Cash, cash equivalents and restricted cash of continuing operations at June 30 $ 8,639 $ — $ — $ 23,913 $ (585 ) $ 31,968 (a) Parent Company Guarantor cash flows included cash from (used for) operating activities of discontinued operations of $(2,048) million . CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2018 (UNAUDITED) (In millions) Parent Company Guarantor Subsidiary Issuer Subsidiary Guarantor Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash from (used for) operating activities(a) $ 10,952 $ (123 ) $ (117 ) $ 9,711 $ (21,098 ) $ (675 ) Cash from (used for) investing activities $ 12,523 $ 193 $ (882 ) $ (21,946 ) $ 15,549 $ 5,437 Cash from (used for) financing activities $ (25,094 ) $ (70 ) $ 999 $ (2,406 ) $ 5,658 $ (20,913 ) Effect of currency exchange rate changes on cash, cash equivalents and restricted cash — — — (285 ) — (285 ) Increase (decrease) in cash, cash equivalents and restricted cash (1,620 ) — — (14,926 ) 110 (16,436 ) Cash, cash equivalents and restricted cash at beginning of year 3,472 — 3 41,993 (743 ) 44,724 Cash, cash equivalents and restricted cash 1,852 — 3 27,067 (634 ) 28,288 Less cash, cash equivalents and restricted cash of discontinued operations at June 30 — — — 744 — 744 Cash, cash equivalents and restricted cash of continuing operations at June 30 $ 1,852 $ — $ 3 $ 26,323 $ (634 ) $ 27,545 (a) Parent Company Guarantor cash flows included cash from (used for) operating activities of discontinued operations of $(2,441) million . |
SEGMENT OPERATIONS (Tables)
SEGMENT OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Operating Segments | SUMMARY OF REPORTABLE SEGMENTS Three months ended June 30 Six months ended June 30 (Dollars in millions) 2019 2018 V% 2019 2018 V% Power $ 4,681 $ 6,261 (25) % $ 9,298 $ 12,209 (24) % Renewable Energy 3,627 2,883 26 % 6,165 5,722 8 % Aviation 7,877 7,519 5 % 15,831 14,631 8 % Healthcare 4,934 4,978 (1) % 9,616 9,680 (1) % Oil & Gas 5,953 5,554 7 % 11,569 10,939 6 % Total industrial segment revenues 27,071 27,195 — % 52,479 53,181 (1) % Capital 2,321 2,429 (4) % 4,548 4,602 (1) % Total segment revenues 29,392 29,623 (1) % 57,027 57,783 (1) % Corporate items and eliminations (561 ) (462 ) (21) % (910 ) (833 ) (9) % Consolidated revenues $ 28,831 $ 29,162 (1) % $ 56,117 $ 56,950 (1) % Power $ 117 $ 410 (71) % $ 228 $ 654 (65) % Renewable Energy (184 ) 85 U (371 ) 196 U Aviation 1,385 1,475 (6) % 3,046 3,078 (1) % Healthcare 958 926 3 % 1,740 1,660 5 % Oil & Gas 82 73 12 % 245 (70 ) F Total industrial segment profit (loss) 2,359 2,969 (21) % 4,887 5,518 (11) % Capital (89 ) (207 ) 57 % 46 (422 ) F Total segment profit (loss) 2,270 2,762 (18) % 4,933 5,095 (3) % Corporate items and eliminations (956 ) (222 ) U (1,165 ) (886 ) (31) % GE goodwill impairments (744 ) — — % (744 ) — — % GE interest and other financial charges (444 ) (686 ) 35 % (1,032 ) (1,326 ) 22 % GE non-operating benefit costs (554 ) (688 ) 19 % (1,115 ) (1,369 ) 19 % GE benefit (provision) for income taxes 137 (487 ) F (213 ) (576 ) 63 % Earnings (loss) from continuing operations attributable to GE common shareowners (291 ) 679 U 663 940 (29 )% Earnings (loss) from discontinued operations, net of taxes 231 (63 ) F 2,823 (1,504 ) F Less net earnings attributable to noncontrolling interests, discontinued operations — 1 (100) % (2 ) 4 U Earnings (loss) from discontinued operations, net of tax and noncontrolling interest 231 (64 ) F 2,825 (1,508 ) F Consolidated net earnings (loss) attributable to the GE common shareowners $ (61 ) $ 615 U $ 3,488 $ (568 ) F Effective the first quarter of 2019, Corporate items and eliminations includes the results of our Lighting segment for all periods presented. Oil & Gas segment profit excluding restructuring and other charges* of $135 million and $148 million was $217 million and $222 million for the three months ended June 30, 2019 and 2018, respectively. Oil & Gas segment profit excluding restructuring and other charges* of $194 million and $473 million was $439 million and $403 million for the six months ended June 30, 2019 and 2018, respectively. *Non-GAAP Financial Measure |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Restricted cash | $ 716 | $ 492 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounting Changes (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 96,773 | $ 93,109 | |
Right-of-use assets | 3,860 | 0 | |
Lease liabilities | $ 4,074 | $ 0 | |
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 317 | ||
Right-of-use assets | 4,116 | ||
Lease liabilities | 4,303 | ||
ASU 2017-12 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | 52 | ||
Borrowings | $ (52) |
BUSINESSES HELD FOR SALE AND _3
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS - Assets and Liabilities of Businesses Held for Sale, Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Dec. 31, 2019 | Feb. 25, 2019 | Dec. 31, 2018 | Nov. 13, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Assets held for sale | $ 9,206 | $ 1,630 | |||
Goodwill | 52,272 | 58,730 | |||
Liabilities held for sale | 1,478 | $ 708 | |||
Assets planned to be disposed of | $ 20,000 | ||||
BioPharma | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Assets held for sale | 8,429 | ||||
Liabilities held for sale | 1,182 | ||||
Disposed of by Sale, Not Discontinued Operations | Reciprocating Compression Business | Scenario, Forecast | Oil & Gas | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Pre-tax loss | $ 160 | ||||
Held for Sale or Disposed of by Sale | BioPharma | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Consideration | $ 21,400 | ||||
Goodwill | 5,523 | ||||
Held for Sale, Not Discontinued Operation | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Consideration | 1,049 | ||||
Pre-tax gain (loss) on disposal | 217 | ||||
Liquidation of valuation allowance | $ 548 |
BUSINESSES HELD FOR SALE AND _4
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS - Financial Information for Assets and Liabilities of Businesses Held for Sale (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Assets | $ 4,191 | $ 9,257 |
Liabilities | ||
Liabilities | 382 | 3,747 |
Held for Sale, Not Discontinued Operation | ||
Assets | ||
Current receivables | 512 | 184 |
Inventories | 784 | 529 |
Property, plant, and equipment – net and Operating leases | 895 | 423 |
Goodwill and Other intangible assets - net | 6,344 | 884 |
Valuation allowance | (647) | (1,013) |
Deferred tax asset | 880 | 0 |
Other assets | 438 | 623 |
Assets | 9,206 | 1,630 |
Liabilities | ||
Accounts payable and Progress collections and deferred income | 850 | 428 |
Non-current compensation and benefits | 367 | 152 |
Other liabilities | 261 | 128 |
Liabilities | $ 1,478 | $ 708 |
BUSINESSES HELD FOR SALE AND _5
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS - Discontinued Operations, Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 25, 2019 | Jun. 30, 2019 | Apr. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from principal business dispositions | $ 1,058 | $ 2,361 | ||||||
Assets of discontinued operations | $ 4,191 | $ 4,191 | 4,191 | $ 9,257 | ||||
Liabilities of discontinued operations | 382 | 382 | 382 | 3,747 | ||||
Violation of FIRREA by WMC and GE Capital | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Amount to be paid | $ 1,500 | |||||||
Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Gain (loss) on disposal before income taxes | 0 | $ 0 | 3,517 | 4 | ||||
Gain (loss) on disposal, net of taxes | 0 | 0 | 2,553 | 3 | ||||
Assets of discontinued operations | 4,191 | 4,191 | 4,191 | 9,257 | ||||
Liabilities of discontinued operations | 382 | 382 | 382 | 3,747 | ||||
Discontinued Operations | GE Capital Exit Plan | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Discontinued operations, intercompany tax receivables | 804 | 804 | 804 | 1,141 | ||||
Transportation | Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Gain (loss) on disposal before income taxes | $ 3,471 | |||||||
Gain (loss) on disposal, net of taxes | 2,508 | $ 0 | $ 0 | $ 2,508 | $ 0 | |||
Decrease in additional paid in capital related with spinoff | $ (852) | |||||||
Percentage of shares to shareholders in spinoff | 49.40% | |||||||
Assets of discontinued operations | 4,573 | |||||||
Liabilities of discontinued operations | $ 1,871 | |||||||
Wabtec | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Fair value of interest in common and preferred shares | $ 3,513 | |||||||
Share price (in dollars per share) | $ 73.45 | |||||||
Wabtec | Transportation | Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Ownership interest (as a percent) | 24.90% | |||||||
Proceeds from principal business dispositions | $ 2,827 | |||||||
Additional cash consideration for tax benefits that will be realized | $ 470 | |||||||
Wabtec | Transportation | Discontinued Operations | Common Stock | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Ownership interest (as a percent) | 24.30% | |||||||
GE Capital | Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Tax benefit | 332 | |||||||
Net interest benefits | $ 46 |
BUSINESSES HELD FOR SALE AND _6
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS - Financial Information for Discontinued Operations (Details) - USD ($) $ in Millions | Feb. 25, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS | ||||||
Earnings (loss) from discontinued operations, net of taxes | $ 231 | $ (63) | $ 2,823 | $ (1,504) | ||
Assets | ||||||
Assets | 4,191 | 4,191 | $ 9,257 | |||
Liabilities | ||||||
Liabilities | 382 | 382 | 3,747 | |||
Discontinued Operations | ||||||
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS | ||||||
Sales of goods and services | 0 | 942 | 549 | 1,814 | ||
GE Capital revenues and other income (loss) | (48) | 4 | (9) | (1,468) | ||
Cost of goods and services sold | 0 | (675) | (478) | (1,290) | ||
Other costs and expenses | (15) | (332) | (99) | (556) | ||
Earnings (loss) of discontinued operations before income taxes | (64) | (60) | (37) | (1,499) | ||
Benefit (provision) for income taxes | 295 | (3) | 308 | (7) | ||
Earnings (loss) of discontinued operations, net of taxes | 231 | (63) | 270 | (1,507) | ||
Gain (loss) on disposal before income taxes | 0 | 0 | 3,517 | 4 | ||
Benefit (provision) for income taxes | 0 | 0 | (964) | (1) | ||
Gain (loss) on disposal, net of taxes | 0 | 0 | 2,553 | 3 | ||
Earnings (loss) from discontinued operations, net of taxes | 231 | (63) | 2,823 | (1,504) | ||
Assets | ||||||
Cash, cash equivalents and restricted cash | 594 | 594 | 701 | |||
Investment securities | 206 | 206 | 195 | |||
Current receivables | 84 | 84 | 389 | |||
Inventories | 0 | 0 | 832 | |||
Financing receivables held for sale | 2,599 | 2,599 | 2,745 | |||
Property, plant, and equipment – net and Operating leases | 147 | 147 | 910 | |||
Goodwill and intangible assets - net | 0 | 0 | 1,146 | |||
Deferred income taxes | 346 | 346 | 1,175 | |||
All other assets | 215 | 215 | 1,163 | |||
Assets | 4,191 | 4,191 | 9,257 | |||
Liabilities | ||||||
Accounts payable and Progress collections and deferred income | 31 | 31 | 1,248 | |||
Operating lease liabilities | 227 | 227 | 0 | |||
Other GE current liabilities | 98 | 98 | 590 | |||
All other liabilities | 27 | 27 | 1,909 | |||
Liabilities | 382 | 382 | 3,747 | |||
Discontinued Operations | Transportation | ||||||
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS | ||||||
Gain (loss) on disposal before income taxes | $ 3,471 | |||||
Gain (loss) on disposal, net of taxes | $ 2,508 | 0 | 0 | 2,508 | 0 | |
Earnings (loss) from discontinued operations, net of taxes | (7) | 3 | 2,550 | 115 | ||
Assets | ||||||
Assets | 4,573 | |||||
Liabilities | ||||||
Liabilities | $ 1,871 | |||||
Discontinued Operations | Capital | ||||||
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS | ||||||
Gain (loss) on disposal, net of taxes | 0 | 0 | 45 | 3 | ||
Earnings (loss) from discontinued operations, net of taxes | $ 238 | $ (66) | $ 273 | $ (1,618) |
INVESTMENT SECURITIES - Schedul
INVESTMENT SECURITIES - Schedule of Investment Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Gross unrealized gains | $ 4,884 | $ 4,884 | $ 2,792 | ||
Gross unrealized losses | (55) | (55) | (561) | ||
Equity | 1,761 | 1,761 | 146 | ||
Amortized cost | 34,554 | 34,554 | 31,605 | ||
Estimated fair value | 39,383 | 39,383 | 33,835 | ||
Net unrealized gains (losses) recorded to earnings | (60) | $ 293 | (41) | $ 263 | |
U.S. corporate | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost | 22,663 | 22,663 | 21,306 | ||
Gross unrealized gains | 3,866 | 3,866 | 2,257 | ||
Gross unrealized losses | (26) | (26) | (357) | ||
Estimated fair value | 26,504 | 26,504 | 23,206 | ||
Non-U.S. corporate | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost | 2,186 | 2,186 | 1,906 | ||
Gross unrealized gains | 187 | 187 | 53 | ||
Gross unrealized losses | 0 | 0 | (76) | ||
Estimated fair value | 2,373 | 2,373 | 1,883 | ||
State and municipal | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost | 3,199 | 3,199 | 3,320 | ||
Gross unrealized gains | 572 | 572 | 367 | ||
Gross unrealized losses | (24) | (24) | (54) | ||
Estimated fair value | 3,748 | 3,748 | 3,633 | ||
Mortgage and asset-backed | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost | 3,048 | 3,048 | 3,325 | ||
Gross unrealized gains | 128 | 128 | 51 | ||
Gross unrealized losses | (4) | (4) | (54) | ||
Estimated fair value | 3,172 | 3,172 | 3,322 | ||
Government and agencies | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized cost | 1,696 | 1,696 | 1,603 | ||
Gross unrealized gains | 130 | 130 | 63 | ||
Gross unrealized losses | 0 | 0 | (20) | ||
Estimated fair value | $ 1,825 | $ 1,825 | $ 1,645 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) - USD ($) shares in Millions, $ in Millions | May 06, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Proceeds from investment securities sales and early redemptions by issuers | $ 2,925 | $ 385 | $ 4,346 | $ 706 | ||
Gross realized gains on debt securities | 33 | 26 | 76 | 39 | ||
Gross realized losses | (67) | (3) | (107) | (3) | ||
Net unrealized gains (losses) recorded to earnings | (60) | $ 293 | (41) | $ 263 | ||
Gross unrealized losses, less than 12 months | (13) | (13) | $ (310) | |||
Gross unrealized losses, 12 months or more | (42) | (42) | (251) | |||
Estimated fair value, less than 12 months | 846 | 846 | 7,231 | |||
Estimated fair value, 12 months or more | 929 | 929 | 3,856 | |||
Equity securities without readily determinable fair values | 1,239 | 1,239 | 1,085 | |||
Level 3 | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Investments | $ 4,415 | $ 4,415 | $ 4,301 | |||
Wabtec | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Number of shares issued in secondary offering | 25.3 | |||||
Proceeds from shares sold in secondary offering | $ 1,799 | |||||
Percentage of ownership after secondary offering | 11.80% |
INVESTMENT SECURITIES - Contrac
INVESTMENT SECURITIES - Contractual Maturities (Details) $ in Millions | Jun. 30, 2019USD ($) |
Amortized cost | |
Within one year | $ 410 |
After one year through five years | 3,000 |
After five years through ten years | 6,565 |
After ten years | 19,769 |
Estimated fair value | |
Within one year | 415 |
After one year through five years | 3,153 |
After five years through ten years | 7,429 |
After ten years | $ 23,453 |
CURRENT AND LONG-TERM RECEIVA_3
CURRENT AND LONG-TERM RECEIVABLES - Schedule of Current Receivables (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Customer receivables | $ 15,998 | $ 15,716 | |
Sundry receivables | 5,265 | 4,765 | |
Allowance for losses | (1,111) | (997) | |
Total current receivables | 20,152 | 19,484 | |
GE Capital | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
DPP balance | 385 | 468 | |
GE | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Customer receivables | 12,371 | 11,330 | |
Sundry receivables | 5,600 | 4,763 | |
Allowance for losses | (1,106) | (989) | |
Total current receivables | [1] | $ 16,864 | $ 15,103 |
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
CURRENT AND LONG-TERM RECEIVA_4
CURRENT AND LONG-TERM RECEIVABLES - Sales of GE Current Customer Receivables, Narrative (Details) - Current Receivables - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
GE Excluding BHGE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of receivables sold | 62.00% | 70.00% |
GE Capital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impact on CFOA | $ 1,434 | $ 3,027 |
GE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of receivables sold | 48.00% | 56.00% |
CURRENT AND LONG-TERM RECEIVA_5
CURRENT AND LONG-TERM RECEIVABLES - Sales of GE Current Customer Receivables (Details) - GE - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Current Receivables | GE Capital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at beginning of period | $ 4,386 | $ 9,877 |
GE sales | 19,247 | 24,430 |
GE Capital sales to third parties | (13,836) | (14,201) |
Collections and other | (6,378) | (14,011) |
Reclassification from long-term customer receivables | 209 | 415 |
Balance at end of period | 3,628 | 6,510 |
Current Receivables | Third Parties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at beginning of period | 7,885 | 5,718 |
GE sales | 2,079 | 2,255 |
GE Capital sales to third parties | 13,836 | 14,201 |
Collections and other | (16,968) | (16,184) |
Reclassification from long-term customer receivables | 0 | 0 |
Balance at end of period | 6,832 | 5,989 |
Current Receivables with Recourse | GE Capital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at end of period | $ 1,076 | $ 2,283 |
CURRENT AND LONG-TERM RECEIVA_6
CURRENT AND LONG-TERM RECEIVABLES - Schedule of Long-term Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Long-term customer receivables | $ 1,222 | $ 1,444 |
Long-term sundry receivables | 1,822 | 1,410 |
Allowance for losses | (193) | (202) |
Total long-term receivables | 2,851 | 2,652 |
GE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Long-term customer receivables | 623 | 561 |
Long-term sundry receivables | 2,197 | 1,750 |
Allowance for losses | (193) | (202) |
Total long-term receivables | $ 2,628 | $ 2,109 |
CURRENT AND LONG-TERM RECEIVA_7
CURRENT AND LONG-TERM RECEIVABLES - Sales of GE Long-Term Receivables, Narrative (Details) - Noncurrent Receivables - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average remaining duration period | 3 years | |
GE Capital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impact on CFOA | $ 309 | $ 520 |
CURRENT AND LONG-TERM RECEIVA_8
CURRENT AND LONG-TERM RECEIVABLES - Sales of GE Long-term Receivables (Details) - GE Capital - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Noncurrent Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at beginning of period | $ 883 | $ 1,947 |
GE sales to GE Capital | 0 | 112 |
Sales, collections, accretion and other | (75) | (170) |
Reclassification to current customer receivables | (209) | (415) |
Balance at end of period | 599 | 1,475 |
Noncurrent Receivables with Recourse | GE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at end of period | $ 430 | $ 885 |
CURRENT AND LONG-TERM RECEIVA_9
CURRENT AND LONG-TERM RECEIVABLES - Unconsolidated Receivables Facilities (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($)receivable_facility | Jun. 30, 2018USD ($) | |
GE Capital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of receivables facility | receivable_facility | 2 | |
Facility program size | $ 5,100 | |
Third Parties | GE | Current Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Customer receivables sold to receivables facilities | 10,786 | $ 11,355 |
Total cash purchase price for customer receivables | 10,495 | 8,584 |
Cash collections re-invested to purchase customer receivables | 8,830 | 7,390 |
Non-cash increases to deferred purchase price | 137 | 2,716 |
Cash payments received on deferred purchase price | $ 220 | $ 2,691 |
CURRENT AND LONG-TERM RECEIV_10
CURRENT AND LONG-TERM RECEIVABLES - Consolidated Securitization Entities (Details) - Consolidated VIE $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($)entity | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | $ 2,130 | $ 2,551 |
Liabilities | $ 1,489 | 1,636 |
GE Capital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of VIEs | entity | 3 | |
GE Capital | Receivables | Current Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | $ 1,863 | 2,141 |
GE Capital | Receivables | Noncurrent Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | 512 | 678 |
GE Capital | Debt | Debt Facilities | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Liabilities | $ 1,423 | $ 1,875 |
FINANCING RECEIVABLES AND ALL_3
FINANCING RECEIVABLES AND ALLOWANCES - Schedule of Financing Receivables, Net (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables – net | $ 3,436 | $ 7,699 |
Financing Receivables Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 3,483 | 7,757 |
Allowance for losses | (47) | (58) |
Financing receivables – net | 3,436 | 7,699 |
Financing Receivables Portfolio Segment | Loans, net of deferred income | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 1,344 | 5,118 |
Financing Receivables Portfolio Segment | Investment in financing leases, net of deferred income | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 2,139 | 2,639 |
Financing Receivables Portfolio Segment | GE Capital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 8,224 | 13,656 |
Allowance for losses | (14) | (28) |
Financing receivables – net | 8,210 | 13,628 |
Financing Receivables Portfolio Segment | GE Capital | Loans, net of deferred income | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 5,908 | 10,834 |
Financing Receivables Portfolio Segment | GE Capital | Investment in financing leases, net of deferred income | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | $ 2,316 | $ 2,822 |
FINANCING RECEIVABLES AND ALL_4
FINANCING RECEIVABLES AND ALLOWANCES - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance lease income | $ 48,000,000 | $ 61,000,000 | $ 97,000,000 | $ 134,000,000 | ||
Financing receivable | 3,436,000,000 | 3,436,000,000 | $ 7,699,000,000 | |||
Financing Receivables Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivable | 3,436,000,000 | 3,436,000,000 | 7,699,000,000 | |||
GECAS | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivable | [1] | $ 0 | $ 0 | $ 0 | ||
GE Capital | Financing Receivables Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Percent of financing receivables over 30 days past due | 3.00% | 3.00% | 2.40% | |||
Percent of financing receivables over 90 days past due | 2.20% | 2.20% | 1.80% | |||
Percent of financing receivables on nonaccrual | 3.60% | 3.60% | 0.90% | |||
Financing receivable | $ 8,210,000,000 | $ 8,210,000,000 | $ 13,628,000,000 | |||
GE Capital | Financing Receivables Portfolio Segment | Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivable | 575,000,000 | 575,000,000 | 688,000,000 | |||
Financing receivables on nonaccrual | 105,000,000 | $ 105,000,000 | $ 96,000,000 | |||
GE Capital | GECAS | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivables classified as held for sale | 3,615,000,000 | |||||
GE Capital | GECAS | Financing Receivables Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Write-offs | $ 0 | |||||
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and work in process | $ 10,854 | $ 10,102 |
Finished goods | 8,928 | 8,086 |
Unbilled shipments | 189 | 201 |
Total inventories | $ 19,971 | $ 18,389 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES - Property, Plant and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||||
Original cost | $ 85,962 | $ 85,962 | $ 85,476 | ||
Less accumulated depreciation and amortization | (36,019) | (36,019) | (35,637) | ||
Property, plant and equipment – net | 49,943 | 49,943 | $ 49,839 | ||
Consolidated depreciation and amortization on property, plant and equipment | 2,482 | $ 2,640 | |||
Operating lease income | 1,181 | $ 1,210 | 2,320 | 2,392 | |
Fixed lease income | 748 | 829 | 1,524 | 1,651 | |
Variable lease income | $ 432 | $ 381 | $ 796 | $ 740 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES - Operating Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Right-of-use assets | $ 3,860 | $ 0 |
Lease liabilities | $ 4,074 | $ 0 |
Lease term | 12 years |
PROPERTY, PLANT AND EQUIPMENT_5
PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES - Operating Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Long-term (fixed) | $ 256 | $ 285 | $ 529 | $ 592 |
Long-term (Variable) | 35 | 57 | 90 | 120 |
Short-term | 186 | 177 | 432 | 338 |
Total Operating lease expense | $ 476 | $ 519 | $ 1,052 | $ 1,050 |
PROPERTY, PLANT AND EQUIPMENT_6
PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES - Maturity of Lease Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
2019 (excluding six months ended June 30, 2019) | $ 540 | |
2020 | 949 | |
2021 | 763 | |
2022 | 631 | |
2023 | 500 | |
Thereafter | 1,534 | |
Total undiscounted lease payments | 4,917 | |
Less: imputed interest | (843) | |
Total lease liability as of June 30, 2019 | $ 4,074 | $ 0 |
PROPERTY, PLANT AND EQUIPMENT_7
PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES - Supplemental Information Related to Operating Leases (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Property, Plant and Equipment [Abstract] | |
Operating cash flows used for operating leases | $ 579 |
Right-of-use assets obtained in exchange for new lease liabilities | $ 409 |
Weighted-average remaining lease term | 7 years 2 months 12 days |
Weighted-average discount rate | 5.00% |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Goodwill Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill | ||||
Balance at beginning of period | $ 58,730 | |||
Dispositions and classification to held for sale | (5,560) | |||
Impairments | $ (744) | $ 0 | (744) | $ 0 |
Currency exchange and other | (153) | |||
Balance at end of period | 52,272 | 52,272 | ||
Operating Segments | Power | ||||
Goodwill | ||||
Balance at beginning of period | 139 | |||
Dispositions and classification to held for sale | 0 | |||
Impairments | 0 | |||
Currency exchange and other | 6 | |||
Balance at end of period | 145 | 145 | ||
Operating Segments | Renewable Energy | ||||
Goodwill | ||||
Balance at beginning of period | 4,730 | |||
Dispositions and classification to held for sale | 0 | |||
Impairments | (744) | |||
Currency exchange and other | 72 | |||
Balance at end of period | 4,058 | 4,058 | ||
Operating Segments | Aviation | ||||
Goodwill | ||||
Balance at beginning of period | 9,839 | |||
Dispositions and classification to held for sale | 0 | |||
Impairments | 0 | |||
Currency exchange and other | 24 | |||
Balance at end of period | 9,863 | 9,863 | ||
Operating Segments | Healthcare | ||||
Goodwill | ||||
Balance at beginning of period | 17,226 | |||
Dispositions and classification to held for sale | (5,523) | |||
Impairments | 0 | |||
Currency exchange and other | 32 | |||
Balance at end of period | 11,735 | 11,735 | ||
Operating Segments | Oil & Gas | ||||
Goodwill | ||||
Balance at beginning of period | 24,455 | |||
Dispositions and classification to held for sale | (37) | |||
Impairments | 0 | |||
Currency exchange and other | 301 | |||
Balance at end of period | 24,719 | 24,719 | ||
Operating Segments | Capital | ||||
Goodwill | ||||
Balance at beginning of period | 904 | |||
Dispositions and classification to held for sale | 0 | |||
Impairments | 0 | |||
Currency exchange and other | (26) | |||
Balance at end of period | 878 | 878 | ||
Corporate | ||||
Goodwill | ||||
Balance at beginning of period | 1,438 | |||
Dispositions and classification to held for sale | 0 | |||
Impairments | 0 | |||
Currency exchange and other | (564) | |||
Balance at end of period | $ 874 | $ 874 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill, Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Goodwill [Line Items] | |||||
Goodwill impairment | $ 744 | $ 0 | $ 744 | $ 0 | |
Goodwill | 52,272 | 52,272 | $ 58,730 | ||
Grid Solutions equipment and services | |||||
Goodwill [Line Items] | |||||
Goodwill impairment | 744 | ||||
Hydro Reporting Unit | |||||
Goodwill [Line Items] | |||||
Goodwill | 740 | 740 | |||
Operating Segments | Power | |||||
Goodwill [Line Items] | |||||
Goodwill transfers in (out) | (1,618) | ||||
Goodwill impairment | 0 | ||||
Goodwill | 145 | 145 | 139 | ||
Operating Segments | Renewable Energy | |||||
Goodwill [Line Items] | |||||
Goodwill transfers in (out) | 744 | ||||
Goodwill impairment | 744 | ||||
Goodwill | 4,058 | 4,058 | 4,730 | ||
Corporate | |||||
Goodwill [Line Items] | |||||
Goodwill transfers in (out) | 874 | ||||
Goodwill impairment | 0 | ||||
Goodwill | $ 874 | $ 874 | $ 1,438 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets - Net (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible assets subject to amortization | $ 14,412 | $ 15,675 |
Indefinite-lived intangible assets | 2,242 | 2,222 |
Total | $ 16,653 | $ 17,897 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets, Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets subject to amortization | $ 14,412 | $ 14,412 | $ 15,675 | ||
Amortization of intangible assets | 454 | $ 547 | 916 | $ 1,149 | |
BioPharma | Held-for-sale | Healthcare | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets subject to amortization | $ 524 | $ 524 |
REVENUES - Equipment and Servic
REVENUES - Equipment and Services Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Industrial Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ 27,071 | $ 27,195 | $ 52,479 | $ 53,181 |
Industrial Segment | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 12,561 | 12,564 | 24,155 | 24,737 |
Industrial Segment | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 14,510 | 14,631 | 28,325 | 28,444 |
Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,681 | 6,261 | 9,298 | 12,209 |
Power | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 1,463 | 2,416 | 3,039 | 4,889 |
Power | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,218 | 3,845 | 6,259 | 7,319 |
Renewable Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,627 | 2,883 | 6,165 | 5,722 |
Renewable Energy | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,867 | 2,240 | 4,848 | 4,564 |
Renewable Energy | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 760 | 643 | 1,317 | 1,158 |
Aviation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 7,877 | 7,519 | 15,831 | 14,631 |
Aviation | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,033 | 2,909 | 6,146 | 5,448 |
Aviation | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,844 | 4,610 | 9,685 | 9,183 |
Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,934 | 4,978 | 9,616 | 9,680 |
Healthcare | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,838 | 2,812 | 5,492 | 5,419 |
Healthcare | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,095 | 2,166 | 4,125 | 4,261 |
Oil & Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 5,953 | 5,554 | 11,569 | 10,939 |
Oil & Gas | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,361 | 2,189 | 4,630 | 4,417 |
Oil & Gas | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ 3,592 | $ 3,366 | $ 6,940 | $ 6,522 |
REVENUES - Sub-Segment Revenues
REVENUES - Sub-Segment Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Consolidated Revenues | $ 28,831 | $ 29,162 | $ 56,117 | $ 56,950 |
Industrial Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 27,071 | 27,195 | 52,479 | 53,181 |
Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,681 | 6,261 | 9,298 | 12,209 |
Renewable Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,627 | 2,883 | 6,165 | 5,722 |
Aviation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 7,877 | 7,519 | 15,831 | 14,631 |
Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,934 | 4,978 | 9,616 | 9,680 |
Oil & Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 5,953 | 5,554 | 11,569 | 10,939 |
Operating segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Revenues | 29,392 | 29,623 | 57,027 | 57,783 |
Operating segments | Industrial Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 27,071 | 27,195 | 52,479 | 53,181 |
Operating segments | Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,681 | 6,261 | 9,298 | 12,209 |
Consolidated Revenues | 4,681 | 6,261 | 9,298 | 12,209 |
Operating segments | Power | Gas Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,248 | 3,500 | 6,510 | 7,041 |
Operating segments | Power | Power Portfolio | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 1,434 | 2,761 | 2,788 | 5,168 |
Operating segments | Renewable Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,627 | 2,883 | 6,165 | 5,722 |
Consolidated Revenues | 3,627 | 2,883 | 6,165 | 5,722 |
Operating segments | Renewable Energy | Onshore Wind | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,449 | 1,336 | 3,891 | 2,596 |
Operating segments | Renewable Energy | Grid Solutions equipment and services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 938 | 1,230 | 1,872 | 2,423 |
Operating segments | Renewable Energy | Hydro and Offshore Wind | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 239 | 317 | 402 | 703 |
Operating segments | Aviation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 7,877 | 7,519 | 15,831 | 14,631 |
Consolidated Revenues | 7,877 | 7,519 | 15,831 | 14,631 |
Operating segments | Aviation | Commercial Engines & Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 5,848 | 5,534 | 11,797 | 10,806 |
Operating segments | Aviation | Military | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 976 | 1,073 | 2,013 | 2,044 |
Operating segments | Aviation | Systems & Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 1,052 | 911 | 2,021 | 1,780 |
Operating segments | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,934 | 4,978 | 9,616 | 9,680 |
Consolidated Revenues | 4,934 | 4,978 | 9,616 | 9,680 |
Operating segments | Healthcare | Healthcare Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,589 | 3,735 | 7,020 | 7,311 |
Operating segments | Healthcare | Life Sciences | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 1,345 | 1,244 | 2,595 | 2,369 |
Operating segments | Oil & Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 5,953 | 5,554 | 11,569 | 10,939 |
Consolidated Revenues | 5,953 | 5,554 | 11,569 | 10,939 |
Operating segments | Oil & Gas | Turbomachinery & Process Solutions (TPS) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 1,365 | 1,391 | 2,669 | 2,839 |
Operating segments | Oil & Gas | Oilfield Services (OFS) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,263 | 2,884 | 6,249 | 5,561 |
Operating segments | Oil & Gas | Oilfield Equipment (OFE) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 693 | 617 | 1,428 | 1,281 |
Operating segments | Oil & Gas | Digital Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 632 | 662 | 1,223 | 1,258 |
Operating segments | Capital | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Revenues | 2,321 | 2,429 | 4,548 | 4,602 |
Corporate items and eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Revenues | $ (561) | $ (462) | $ (910) | $ (833) |
REVENUES - Remaining Performanc
REVENUES - Remaining Performance Obligation (Details) $ in Millions | Jun. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 251,443 |
Equipment | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 50,331 |
Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 201,112 |
REVENUES - Remaining Performa_2
REVENUES - Remaining Performance Obligation (Percentage and Period) (Details) | Jun. 30, 2019 |
Equipment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 58.00% |
Performance obligations expected to be satisfied, expected timing | 1 year |
Equipment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 76.00% |
Performance obligations expected to be satisfied, expected timing | 2 years |
Equipment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 86.00% |
Performance obligations expected to be satisfied, expected timing | 5 years |
Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 14.00% |
Performance obligations expected to be satisfied, expected timing | 1 year |
Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 47.00% |
Performance obligations expected to be satisfied, expected timing | 5 years |
Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 72.00% |
Performance obligations expected to be satisfied, expected timing | 10 years |
Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2035-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 89.00% |
Performance obligations expected to be satisfied, expected timing | 15 years |
CONTRACT AND OTHER DEFERRED A_3
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Capitalized Contract Cost [Line Items] | ||
Increase (decrease) in contract and other deferred assets | $ (55) | |
Revenue recognized included in contract liability | 8,370 | $ 9,332 |
Aviation and Oil & Gas | ||
Capitalized Contract Cost [Line Items] | ||
Increase (decrease) in progress collections and deferred income due to timing of revenue recognition | 305 | |
Long-term | Services | ||
Capitalized Contract Cost [Line Items] | ||
Increase due to revenues recognized | 5,676 | |
Billings | (5,553) | |
Long-term | Services | Aviation | ||
Capitalized Contract Cost [Line Items] | ||
Change in estimated profitability | $ (80) |
CONTRACT AND OTHER DEFERRED A_4
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME - Schedule of Contract Assets (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Contract and other deferred assets | $ 19,176 | $ 19,231 | |
GE | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 12,571 | 12,480 | |
Deferred inventory costs | 3,213 | 3,488 | |
Nonrecurring engineering costs | 2,273 | 2,117 | |
Customer advances and other | 1,119 | 1,146 | |
Contract and other deferred assets | [1] | 19,176 | 19,231 |
GE | Service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues in excess of billings | 11,310 | 11,482 | |
Billings in excess of revenues | (4,997) | (5,176) | |
GE | Service agreements | Long-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 6,314 | 6,306 | |
GE | Service agreements | Short-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 983 | 850 | |
GE | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 5,275 | 5,324 | |
GE | Power | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 6,959 | 6,603 | |
Deferred inventory costs | 909 | 1,003 | |
Nonrecurring engineering costs | 41 | 43 | |
Customer advances and other | 0 | 0 | |
Contract and other deferred assets | 7,909 | 7,650 | |
GE | Power | Service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues in excess of billings | 5,661 | 5,368 | |
Billings in excess of revenues | (1,576) | (1,693) | |
GE | Power | Service agreements | Long-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 4,084 | 3,675 | |
GE | Power | Service agreements | Short-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 135 | 99 | |
GE | Power | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 2,740 | 2,829 | |
GE | Aviation | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 2,222 | 2,468 | |
Deferred inventory costs | 374 | 673 | |
Nonrecurring engineering costs | 2,072 | 1,916 | |
Customer advances and other | 1,119 | 1,146 | |
Contract and other deferred assets | 5,787 | 6,204 | |
GE | Aviation | Service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues in excess of billings | 4,980 | 5,412 | |
Billings in excess of revenues | (3,175) | (3,297) | |
GE | Aviation | Service agreements | Long-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 1,805 | 2,115 | |
GE | Aviation | Service agreements | Short-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 338 | 272 | |
GE | Aviation | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 79 | 80 | |
GE | Oil & Gas | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 1,493 | 1,600 | |
Deferred inventory costs | 129 | 179 | |
Nonrecurring engineering costs | 43 | 22 | |
Customer advances and other | 0 | 0 | |
Contract and other deferred assets | 1,665 | 1,800 | |
GE | Oil & Gas | Service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues in excess of billings | 669 | 703 | |
Billings in excess of revenues | (245) | (187) | |
GE | Oil & Gas | Service agreements | Long-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 424 | 516 | |
GE | Oil & Gas | Service agreements | Short-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 177 | 182 | |
GE | Oil & Gas | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 891 | 902 | |
GE | Renewable Energy | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 1,278 | 1,174 | |
Deferred inventory costs | 1,463 | 1,267 | |
Nonrecurring engineering costs | 72 | 85 | |
Customer advances and other | 0 | 0 | |
Contract and other deferred assets | 2,813 | 2,525 | |
GE | Renewable Energy | Service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues in excess of billings | 0 | 0 | |
Billings in excess of revenues | 0 | 0 | |
GE | Renewable Energy | Service agreements | Long-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 0 | 0 | |
GE | Renewable Energy | Service agreements | Short-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 35 | 45 | |
GE | Renewable Energy | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 1,242 | 1,129 | |
GE | Healthcare and Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 620 | 635 | |
Deferred inventory costs | 338 | 365 | |
Nonrecurring engineering costs | 44 | 51 | |
Customer advances and other | 0 | 0 | |
Contract and other deferred assets | 1,002 | 1,052 | |
GE | Healthcare and Other | Service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues in excess of billings | 0 | 0 | |
Billings in excess of revenues | 0 | 0 | |
GE | Healthcare and Other | Service agreements | Long-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 0 | 0 | |
GE | Healthcare and Other | Service agreements | Short-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 297 | 251 | |
GE | Healthcare and Other | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | $ 323 | $ 384 | |
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
CONTRACT AND OTHER DEFERRED A_5
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME - Progress Collections and Deferred Income (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Capitalized Contract Cost [Line Items] | |||
Total progress collections & deferred income | $ 20,901 | $ 20,577 | |
GE | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 17,627 | 17,188 | |
Deferred income | 3,510 | 3,645 | |
Total progress collections & deferred income | [1] | 21,138 | 20,833 |
GE | Equipment | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 8,184 | 7,943 | |
GE | Other | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 9,443 | 9,245 | |
GE | Power | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 6,171 | 6,227 | |
Deferred income | 61 | 112 | |
Total progress collections & deferred income | 6,231 | 6,339 | |
GE | Power | Equipment | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 5,619 | 5,536 | |
GE | Power | Other | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 552 | 691 | |
GE | Aviation | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 4,594 | 4,148 | |
Deferred income | 1,432 | 1,338 | |
Total progress collections & deferred income | 6,026 | 5,486 | |
GE | Aviation | Equipment | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 93 | 114 | |
GE | Aviation | Other | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 4,501 | 4,034 | |
GE | Oil & Gas | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 1,865 | 1,430 | |
Deferred income | 126 | 164 | |
Total progress collections & deferred income | 1,991 | 1,594 | |
GE | Oil & Gas | Equipment | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 1,336 | 878 | |
GE | Oil & Gas | Other | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 529 | 552 | |
GE | Renewable Energy | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 4,510 | 4,883 | |
Deferred income | 266 | 260 | |
Total progress collections & deferred income | 4,776 | 5,143 | |
GE | Renewable Energy | Equipment | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 1,136 | 1,415 | |
GE | Renewable Energy | Other | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 3,374 | 3,468 | |
GE | Healthcare and Other | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 487 | 500 | |
Deferred income | 1,627 | 1,770 | |
Total progress collections & deferred income | 2,113 | 2,271 | |
GE | Healthcare and Other | Equipment | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | 0 | 0 | |
GE | Healthcare and Other | Other | |||
Capitalized Contract Cost [Line Items] | |||
Progress collections | $ 487 | $ 500 | |
[1] | Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1. |
BORROWINGS - Schedule of Borrow
BORROWINGS - Schedule of Borrowings (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total borrowings | $ 105,778 | $ 109,930 |
Short-term borrowings | ||
Short-term borrowings | 15,620 | 12,821 |
Eliminations | (3,376) | (4,262) |
Long-term borrowings | ||
Borrowings | 88,735 | 95,234 |
Eliminations | (18,893) | (19,892) |
GE | ||
Short-term borrowings | ||
Short-term borrowings | 12,518 | 9,400 |
Long-term borrowings | ||
Borrowings | 54,304 | 59,143 |
GE | Senior notes | ||
Long-term borrowings | ||
Borrowings | 25,792 | 26,564 |
GE | Senior notes assumed by GE | ||
Long-term borrowings | ||
Borrowings | 25,171 | 29,218 |
GE | Subordinated notes assumed by GE | ||
Long-term borrowings | ||
Borrowings | 2,839 | 2,836 |
GE | Other | ||
Long-term borrowings | ||
Borrowings | 502 | 524 |
GE | Commercial paper | ||
Short-term borrowings | ||
Short-term borrowings | 3,002 | 3,005 |
GE | Current portion of long-term borrowings | ||
Short-term borrowings | ||
Short-term borrowings | 804 | 103 |
GE | Current portion of long-term borrowings assumed by GE | ||
Short-term borrowings | ||
Short-term borrowings | 6,962 | 4,207 |
GE | Other | ||
Short-term borrowings | ||
Short-term borrowings | 1,749 | 2,084 |
GE Capital | ||
Short-term borrowings | ||
Short-term borrowings | 6,479 | 7,684 |
Long-term borrowings | ||
Borrowings | 53,324 | 55,982 |
GE Capital | Senior notes | ||
Long-term borrowings | ||
Borrowings | 33,468 | 35,105 |
GE Capital | Subordinated notes assumed by GE | ||
Long-term borrowings | ||
Borrowings | 176 | 165 |
GE Capital | Intercompany payable to GE | ||
Long-term borrowings | ||
Borrowings | 18,830 | 19,828 |
GE Capital | Other | ||
Long-term borrowings | ||
Borrowings | 849 | 885 |
GE Capital | Non-recourse borrowings of consolidated securitization entities | ||
Long-term borrowings | ||
Borrowings | 1,423 | 1,875 |
GE Capital | Current portion of long-term borrowings | ||
Short-term borrowings | ||
Short-term borrowings | 3,743 | 3,984 |
GE Capital | Intercompany payable to GE | ||
Short-term borrowings | ||
Short-term borrowings | 2,393 | 2,684 |
GE Capital | Other | ||
Short-term borrowings | ||
Short-term borrowings | $ 343 | $ 1,015 |
BORROWINGS - Narrative (Details
BORROWINGS - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Guarantor Obligations [Line Items] | ||
Borrowings | $ 88,735 | $ 95,234 |
GE Capital | ||
Guarantor Obligations [Line Items] | ||
Receivable from related parties | 21,223 | |
GE | ||
Guarantor Obligations [Line Items] | ||
Total borrowings | 45,599 | |
GE | GE Issued Borrowings | ||
Guarantor Obligations [Line Items] | ||
Total borrowings | 31,850 | |
GE | Intercompany Loan | GE Capital | ||
Guarantor Obligations [Line Items] | ||
Total borrowings | 13,749 | |
Short-term borrowings | 4,569 | |
Long-term borrowings | 9,180 | |
GE Capital | Non-recourse borrowings of consolidated securitization entities | ||
Guarantor Obligations [Line Items] | ||
Debt assumed by GE upon merger | 35,347 | |
GE Capital | GE Capital Exit Plan | ||
Guarantor Obligations [Line Items] | ||
Total borrowings | 34,972 | |
Short-term borrowings | 6,962 | |
Long-term borrowings | 28,010 | |
BHGE | ||
Guarantor Obligations [Line Items] | ||
Borrowings | $ 6,292 |
INSURANCE LIABILITIES AND ANN_3
INSURANCE LIABILITIES AND ANNUITY BENEFITS - Schedule of Investment Contracts, Insurance Liabilities and Insurance Annuity Benefits (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Future policy benefit reserves | $ 30,447 | $ 27,940 |
Claim reserves | 5,504 | 5,324 |
Investment contracts | 2,298 | 2,388 |
Unearned premiums and other | 390 | 342 |
Future policy benefit reserves, investment contracts, claim reserves and unearned premiums and other | 38,639 | 35,994 |
Eliminations | (514) | (432) |
Total | 38,125 | 35,562 |
Other adjustments | 4,792 | 2,247 |
Long-term care insurance contracts | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Future policy benefit reserves | 16,118 | 16,029 |
Claim reserves | 4,094 | 3,917 |
Investment contracts | 0 | 0 |
Unearned premiums and other | 31 | 34 |
Future policy benefit reserves, investment contracts, claim reserves and unearned premiums and other | 20,243 | 19,980 |
Total | 20,243 | 19,980 |
Structured settlement annuities & life insurance contracts | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Future policy benefit reserves | 9,371 | 9,495 |
Claim reserves | 238 | 230 |
Investment contracts | 1,195 | 1,239 |
Unearned premiums and other | 199 | 205 |
Future policy benefit reserves, investment contracts, claim reserves and unearned premiums and other | 11,003 | 11,169 |
Total | 11,003 | 11,169 |
Other contracts | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Future policy benefit reserves | 166 | 169 |
Claim reserves | 1,172 | 1,178 |
Investment contracts | 1,103 | 1,149 |
Unearned premiums and other | 160 | 103 |
Future policy benefit reserves, investment contracts, claim reserves and unearned premiums and other | 2,601 | 2,599 |
Eliminations | (514) | (432) |
Total | $ 2,087 | $ 2,167 |
INSURANCE LIABILITIES AND ANN_4
INSURANCE LIABILITIES AND ANNUITY BENEFITS - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Insurance [Abstract] | |||
Claims incurred | $ 981 | $ 1,004 | |
Paid claims | 824 | $ 904 | |
Reinsurance recoverables, net | $ 2,347 | $ 2,271 |
POSTRETIREMENT BENEFIT PLANS -
POSTRETIREMENT BENEFIT PLANS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions to defined contribution plan | $ 90 | $ 99 | $ 191 | $ 216 |
Other pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Threshold to be included in other pension plans (greater than) | 50 | 50 | ||
Plans cost (income) | (2) | (29) | 4 | (54) |
Principal retiree benefit plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plans cost (income) | $ 30 | $ 20 | 91 | $ 41 |
Curtailment gain | $ 33 |
POSTRETIREMENT BENEFIT PLANS _2
POSTRETIREMENT BENEFIT PLANS - Effect on Operations of Pension Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Principal pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost for benefits earned | $ 160 | $ 203 | $ 318 | $ 435 |
Prior service cost (credit) amortization | 34 | 36 | 67 | 72 |
Expected return on plan assets | (862) | (820) | (1,725) | (1,640) |
Interest cost on benefit obligations | 723 | 667 | 1,449 | 1,333 |
Net actuarial loss amortization | 770 | 943 | 1,533 | 1,894 |
Curtailment loss | 0 | 0 | 51 | 0 |
Plans cost (income) | 825 | 1,029 | 1,693 | 2,094 |
Other pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost for benefits earned | 70 | 99 | 136 | 194 |
Prior service cost (credit) amortization | 1 | (2) | 1 | (2) |
Expected return on plan assets | (320) | (359) | (629) | (717) |
Interest cost on benefit obligations | 156 | 156 | 313 | 312 |
Net actuarial loss amortization | 84 | 83 | 167 | 165 |
Settlement/curtailment loss (gain) | 7 | (6) | 16 | (6) |
Plans cost (income) | $ (2) | $ (29) | $ 4 | $ (54) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 7.40% | 30.00% | |
Continuing Operations | |||
Income Tax Contingency [Line Items] | |||
Tax benefit | $ 378 | ||
Net interest benefits | 107 | ||
Continuing Operations | GE Capital | |||
Income Tax Contingency [Line Items] | |||
Tax benefit | 23 | ||
Net interest benefits | 9 | ||
Continuing Operations | GE | |||
Income Tax Contingency [Line Items] | |||
Tax benefit | 355 | ||
Net interest benefits | 98 | ||
Discontinued Operations | GE Capital | |||
Income Tax Contingency [Line Items] | |||
Tax benefit | 332 | ||
Net interest benefits | $ 46 |
SHAREOWNERS_ EQUITY - Schedule
SHAREOWNERS’ EQUITY - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Beginning balance | $ 51,481 | ||||
Other comprehensive income (loss) | $ 547 | $ (784) | 1,577 | $ 918 | |
Ending balance | [1] | 56,129 | 71,754 | 56,129 | 71,754 |
Accumulated other comprehensive income (loss) | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Beginning balance | (13,485) | (12,862) | (14,414) | (14,404) | |
Ending balance | (12,852) | (13,432) | (12,852) | (13,432) | |
Investment securities including noncontrolling interests | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Beginning balance | (16) | (4) | (39) | (102) | |
Other comprehensive income (loss) before reclassifications | 94 | 32 | 121 | 140 | |
Other comprehensive income (loss) before reclassifications, deferred taxes | (23) | (17) | 15 | 48 | |
Reclassifications from other comprehensive income | (18) | (7) | (22) | (16) | |
Reclassifications from other comprehensive income, deferred taxes | (5) | 0 | (6) | (2) | |
Other comprehensive income (loss) | 76 | 25 | 99 | 124 | |
Investment securities attributable to noncontrolling interests | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Other comprehensive income (loss) | 0 | 0 | 1 | 1 | |
Investment securities | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Other comprehensive income (loss) | 75 | 25 | 98 | 123 | |
Ending balance | 60 | 21 | 60 | 21 | |
Currency translation adjustments including noncontrolling interests | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Beginning balance | (5,810) | (3,988) | (6,134) | (4,661) | |
Other comprehensive income (loss) before reclassifications | (308) | (2,049) | (1) | (1,217) | |
Other comprehensive income (loss) before reclassifications, deferred taxes | 13 | 190 | 39 | (241) | |
Reclassifications from other comprehensive income | 167 | 380 | 284 | 378 | |
Reclassifications from other comprehensive income, deferred taxes | 0 | 0 | (4) | 0 | |
Other comprehensive income (loss) | (141) | (1,669) | 283 | (839) | |
Currency translation adjustments attributable to noncontrolling interests | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Other comprehensive income (loss) | (77) | (211) | 22 | (54) | |
Currency translation adjustments | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Other comprehensive income (loss) | (64) | (1,457) | 260 | (784) | |
Ending balance | (5,874) | (5,446) | (5,874) | (5,446) | |
Cash flow hedges including noncontrolling interests | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Beginning balance | 49 | 114 | 13 | 62 | |
Other comprehensive income (loss) before reclassifications | (50) | (131) | (16) | (26) | |
Other comprehensive income (loss) before reclassifications, deferred taxes | (8) | (39) | 3 | (7) | |
Reclassifications from other comprehensive income | 25 | 50 | 28 | 0 | |
Reclassifications from other comprehensive income, deferred taxes | 4 | 22 | 1 | 7 | |
Other comprehensive income (loss) | (25) | (81) | 12 | (26) | |
Cash flow hedges attributable to noncontrolling interests | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Other comprehensive income (loss) | (1) | (2) | 1 | 0 | |
Cash flow hedges | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Other comprehensive income (loss) | (23) | (79) | 12 | (26) | |
Ending balance | 26 | 36 | 26 | 36 | |
Benefit plans including noncontrolling interests | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Beginning balance | (7,708) | (8,984) | (8,254) | (9,702) | |
Other comprehensive income (loss) before reclassifications | 7 | 182 | (111) | 126 | |
Other comprehensive income (loss) before reclassifications, deferred taxes | 13 | 56 | (35) | 55 | |
Reclassifications from other comprehensive income | 632 | 758 | 1,294 | 1,533 | |
Reclassifications from other comprehensive income, deferred taxes | 164 | 218 | 347 | 436 | |
Other comprehensive income (loss) | 639 | 940 | 1,183 | 1,659 | |
Benefit plans attributable to noncontrolling interests | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Other comprehensive income (loss) | (6) | 1 | (8) | 0 | |
Benefit plans | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||||
Other comprehensive income (loss) | 645 | 940 | 1,192 | 1,659 | |
Ending balance | $ (7,063) | $ (8,043) | $ (7,063) | $ (8,043) | |
[1] | Total equity balance decreased by $(15,625) million in the last twelve months from June 30, 2018 primarily attributable to a non-cash after-tax goodwill impairment charge of $(22,371) million, partially offset by an increase in non-controlling interest of $4,214 million due to a reduction in our economic interest in BHGE in 2018. See our 2018 Form 10-K for further information. |
SHAREOWNERS_ EQUITY - Narrative
SHAREOWNERS’ EQUITY - Narrative (Details) $ / shares in Units, $ in Millions | Jul. 26, 2019USD ($)$ / shares | Oct. 02, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2015joint_venture | Jul. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($) |
Class of Stock [Line Items] | ||||||||||
Adjustments to investment securities before reclassifications | $ (1,054) | $ 534 | $ (2,011) | $ 1,472 | ||||||
Currency translation gains and losses in earnings (loss) from discontinued operations | 116 | |||||||||
Preferred stock issued | 6 | 6 | 6 | 6 | $ 6 | |||||
Noncontrolling interests | 20,312 | 16,685 | 20,312 | 16,685 | 20,500 | |||||
Net earnings attributable to noncontrolling interests | (28) | (15) | 2 | 52 | ||||||
Dividends received attributable to noncontrolling interests | (109) | (81) | (215) | (164) | ||||||
Redeemable noncontrolling interests | 408 | 408 | 382 | |||||||
Net earnings (loss) attributable to redeemable noncontrolling interests | 5 | (116) | 32 | (149) | ||||||
Number of joint ventures formed | joint_venture | 3 | |||||||||
BHGE | Scenario, Forecast | ||||||||||
Class of Stock [Line Items] | ||||||||||
Incremental loss upon deconsolidation | $ (7,400) | |||||||||
Grid Technology Joint Venture | ||||||||||
Class of Stock [Line Items] | ||||||||||
Amount to be paid to exercise redemption rights | $ 3,105 | |||||||||
Baker Hughes | ||||||||||
Class of Stock [Line Items] | ||||||||||
Noncontrolling interests | 19,095 | 19,095 | $ 19,239 | |||||||
Subsequent Event | BHGE | ||||||||||
Class of Stock [Line Items] | ||||||||||
Share price (in dollars per share) | $ / shares | $ 24.84 | |||||||||
GE | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock issued | 5,653 | 5,653 | ||||||||
Preferred stock dividends | 188 | 185 | 228 | 222 | ||||||
Cash dividends | 147 | $ 147 | 147 | $ 147 | ||||||
GE | Subsequent Event | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock issued | $ 5,944 | |||||||||
GE | Series D Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock issued | $ 5,694 | $ 5,694 | $ 5,694 | |||||||
GE | Series A, B and C Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, value outstanding | $ 250 |
EARNINGS PER SHARE INFORMATIO_2
EARNINGS PER SHARE INFORMATION (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Diluted | ||||
Earnings from continuing operations for per-share calculation | $ (103) | $ 862 | $ 873 | $ 1,156 |
Preferred stock dividends | (188) | (185) | (228) | (222) |
Earnings from continuing operations attributable to common shareowners for per-share calculation | (292) | 677 | 645 | 934 |
Earnings (loss) from discontinued operations for per-share calculation | 230 | (69) | 2,800 | (1,515) |
Net earnings (loss) attributable to GE common shareowners for per-share calculation | $ (61) | $ 614 | $ 3,461 | $ (574) |
Shares of GE common stock outstanding (in shares) | 8,724 | 8,688 | 8,716 | 8,686 |
Employee compensation-related shares (including stock options) (in shares) | 0 | 11 | 13 | 9 |
Total average equivalent shares (in shares) | 8,724 | 8,699 | 8,730 | 8,694 |
Earnings per share from continuing operations (in dollars per share) | $ (0.03) | $ 0.08 | $ 0.07 | $ 0.11 |
Earnings (loss) per share from discontinued operations (in dollars per share) | 0.03 | (0.01) | 0.32 | (0.17) |
Net earnings (loss) per share (in dollars per share) | $ (0.01) | $ 0.07 | $ 0.40 | $ (0.07) |
Basic | ||||
Earnings from continuing operations for per-share calculation | $ (103) | $ 863 | $ 888 | $ 1,157 |
Preferred stock dividends | (188) | (185) | (228) | (222) |
Earnings from continuing operations attributable to common shareowners for per-share calculation | (292) | 678 | 661 | 935 |
Earnings (loss) from discontinued operations for per-share calculation | 230 | (68) | 2,816 | (1,514) |
Net earnings (loss) attributable to GE common shareowners for per-share calculation | $ (61) | $ 615 | $ 3,476 | $ (573) |
Shares of GE common stock outstanding (in shares) | 8,724 | 8,688 | 8,716 | 8,686 |
Employee compensation-related shares (including stock options) (in shares) | 0 | 0 | 0 | 0 |
Total average equivalent shares (in shares) | 8,724 | 8,688 | 8,716 | 8,686 |
Earnings per share from continuing operations (in dollars per share) | $ (0.03) | $ 0.08 | $ 0.08 | $ 0.11 |
Earnings (loss) per share from discontinued operations (in dollars per share) | 0.03 | (0.01) | 0.32 | (0.17) |
Net earnings (loss) per share (in dollars per share) | $ (0.01) | $ 0.07 | $ 0.40 | $ (0.07) |
Outstanding stock awards not included in the computation of diluted earnings per share (in shares) | 485 | 411 | 468 | 407 |
FINANCIAL INSTRUMENTS - Assets
FINANCIAL INSTRUMENTS - Assets and Liabilities Not Carried at Fair Value (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Liabilities | ||
Decrease in fair value of borrowings | $ 1,685 | $ 1,300 |
Carrying amount (net) | ||
Assets | ||
Loans and other receivables | 8,292 | 8,812 |
Liabilities | ||
Borrowings (Note 11) | 105,778 | 109,930 |
Investment contracts (Note 12) | 2,298 | 2,388 |
Estimated fair value | ||
Assets | ||
Loans and other receivables | 8,358 | 8,830 |
Liabilities | ||
Borrowings (Note 11) | 110,233 | 106,221 |
Investment contracts (Note 12) | 2,656 | 2,630 |
Accrued interest | $ 1,140 | $ 1,361 |
FINANCIAL INSTRUMENTS - Derivat
FINANCIAL INSTRUMENTS - Derivatives and Hedging, Narrative (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Total gross notional amount | $ 100,903,000,000 | $ 123,535,000,000 |
Excess cash collateral received | 5,000,000 | 3,000,000 |
Excess cash collateral posted | 21,000,000 | 439,000,000 |
Excess securities collateral received | 22,000,000 | 0 |
GE | ||
Derivative [Line Items] | ||
Total gross notional amount | 40,573,000,000 | 44,453,000,000 |
GE Capital | ||
Derivative [Line Items] | ||
Total gross notional amount | $ 60,331,000,000 | $ 79,082,000,000 |
FINANCIAL INSTRUMENTS - Fair Va
FINANCIAL INSTRUMENTS - Fair Value of Derivatives (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Gross Notional | $ 100,903 | $ 123,535 |
All other assets | ||
Gross derivatives | 2,409 | 2,279 |
Netting and credit adjustments | (683) | (959) |
Cash collateral adjustments | (1,230) | (1,042) |
Net derivatives recognized in statement of financial position | 495 | 279 |
Net accrued interest | 185 | 205 |
Securities held as collateral | (460) | (235) |
Net amount | 220 | 248 |
All other liabilities | ||
Gross derivatives | 1,290 | 1,902 |
Netting and credit adjustments | (684) | (967) |
Cash collateral adjustments | (278) | (267) |
Net derivatives recognized in statement of financial position | 327 | 669 |
Net accrued interest | 3 | 1 |
Securities held as collateral | 0 | 0 |
Net amount | 330 | 670 |
Derivatives accounted for as hedges | ||
Derivative [Line Items] | ||
Gross Notional | 27,831 | 30,873 |
All other assets | ||
Gross derivatives | 1,751 | 1,511 |
All other liabilities | ||
Gross derivatives | 106 | 145 |
Derivatives accounted for as hedges | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Notional | 21,518 | 22,904 |
All other assets | ||
Gross derivatives | 1,654 | 1,335 |
All other liabilities | ||
Gross derivatives | 3 | 23 |
Derivatives accounted for as hedges | Currency exchange contracts | ||
Derivative [Line Items] | ||
Gross Notional | 6,313 | 7,970 |
All other assets | ||
Gross derivatives | 97 | 175 |
All other liabilities | ||
Gross derivatives | 104 | 121 |
Derivatives not accounted for as hedges | ||
Derivative [Line Items] | ||
Gross Notional | 73,072 | 92,662 |
All other assets | ||
Gross derivatives | 658 | 769 |
All other liabilities | ||
Gross derivatives | 1,183 | 1,757 |
Derivatives not accounted for as hedges | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Notional | 4,934 | 6,198 |
All other assets | ||
Gross derivatives | 46 | 28 |
All other liabilities | ||
Gross derivatives | 12 | 2 |
Derivatives not accounted for as hedges | Currency exchange contracts | ||
Derivative [Line Items] | ||
Gross Notional | 65,872 | 83,841 |
All other assets | ||
Gross derivatives | 555 | 727 |
All other liabilities | ||
Gross derivatives | 1,093 | 1,546 |
Derivatives not accounted for as hedges | Other contracts | ||
Derivative [Line Items] | ||
Gross Notional | 2,267 | 2,622 |
All other assets | ||
Gross derivatives | 57 | 13 |
All other liabilities | ||
Gross derivatives | $ 78 | $ 209 |
FINANCIAL INSTRUMENTS - Fair _2
FINANCIAL INSTRUMENTS - Fair Value Hedges (Details) $ in Millions | Jun. 30, 2019USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Cumulative amount of fair value hedging adjustments | $ 4,221 |
Cumulative amount of fair value hedging on discontinued hedging relationships | 2,568 |
Hedged liability | $ 58,344 |
FINANCIAL INSTRUMENTS - Cash Fl
FINANCIAL INSTRUMENTS - Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Gain (loss) recognized in AOCI | $ (49) | $ (162) | $ (2) | $ (20) |
Gain (loss) reclassified from AOCI into earnings | $ (29) | $ (72) | (29) | $ (7) |
Pre-tax gain included in AOCI related to cash flow hedges of forecasted transactions | 49 | |||
Amount of loss expected to be transferred to earnings as an expense | $ 74 | |||
Maximum term of hedged forecasted transactions | 13 years | 14 years |
FINANCIAL INSTRUMENTS - Net Inv
FINANCIAL INSTRUMENTS - Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative [Line Items] | ||||
Gain (loss) recognized in AOCI on hedging instruments | $ 86 | $ 810 | $ 18 | $ 205 |
Net Investment Hedges | ||||
Derivative [Line Items] | ||||
Gain (loss) excluded from assessment recognized in earnings | 8 | 6 | 16 | 8 |
Currency exchange contracts | ||||
Derivative [Line Items] | ||||
Gain (loss) recognized in AOCI on hedging instruments | 2 | 92 | (25) | 83 |
Foreign currency debt | ||||
Derivative [Line Items] | ||||
Gain (loss) recognized in AOCI on hedging instruments | 85 | 718 | 44 | 123 |
Carrying value designated as net investment hedges | $ 12,421 | $ 9,815 | $ 12,421 | $ 9,815 |
FINANCIAL INSTRUMENTS - Effects
FINANCIAL INSTRUMENTS - Effects of Derivative Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Revenues | $ 28,831 | $ 29,162 | $ 56,117 | $ 56,950 |
Cost of sales | 21,817 | 21,749 | 42,170 | 42,659 |
Interest and other financial charges | 991 | 1,291 | 2,123 | 2,573 |
SG&A | 4,184 | 4,346 | 8,330 | 8,434 |
Other income | (8) | 886 | 870 | 1,091 |
Total effect of cash flow hedges | (29) | (72) | (29) | (7) |
Revenues | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total effect of cash flow hedges | (15) | (72) | 5 | (4) |
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (385) | (1,175) | 48 | (542) |
Cost of sales | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total effect of cash flow hedges | (5) | 9 | (14) | 16 |
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (52) | (249) | (44) | (243) |
Interest Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total effect of cash flow hedges | (9) | (10) | (19) | (20) |
Fair Value Hedges | ||||
Hedged items | (659) | 195 | (1,186) | 866 |
Derivatives designated as hedging instruments | 646 | (225) | 1,161 | (922) |
Total effect of fair value hedges | (14) | (30) | (25) | (56) |
Total effect of derivatives not designated as hedges | (49) | 94 | (16) | (10) |
SG&A | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total effect of cash flow hedges | 0 | (1) | 0 | |
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 1 | 130 | (44) | 0 |
Other Income | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total effect of cash flow hedges | 0 | 0 | 0 | |
Fair Value Hedges | ||||
Hedged items | ||||
Derivatives designated as hedging instruments | ||||
Total effect of fair value hedges | ||||
Total effect of derivatives not designated as hedges | (43) | (40) | (27) | 19 |
Interest rate contracts | Revenues | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (16) | (20) | (36) | (34) |
Interest rate contracts | Cost of sales | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 0 | 0 | 0 |
Interest rate contracts | Interest Expense | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 0 | 0 | 0 |
Interest rate contracts | SG&A | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 0 | 0 | 0 |
Interest rate contracts | Other Income | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 0 | 0 | 0 |
Currency exchange contracts | Revenues | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (370) | (1,159) | 83 | (506) |
Currency exchange contracts | Cost of sales | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (52) | (249) | (44) | (243) |
Currency exchange contracts | Interest Expense | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (76) | 69 | (139) | 0 |
Currency exchange contracts | SG&A | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 1 | 130 | (44) | 0 |
Currency exchange contracts | Other Income | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (33) | (52) | (29) | (1) |
Other | Revenues | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 4 | 0 | (1) | |
Other | Cost of sales | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 0 | ||
Other | Interest Expense | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 27 | 25 | 123 | (10) |
Other | SG&A | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 0 | 0 | |
Other | Other Income | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | $ (11) | $ 11 | $ 3 | $ 21 |
FINANCIAL INSTRUMENTS - Counter
FINANCIAL INSTRUMENTS - Counterparty Credit Risk (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Derivative [Line Items] | |||
Net amount | $ 330 | $ 670 | |
Counterparty Credit Risk | |||
Derivative [Line Items] | |||
Exposure to counterparties including interest net collateral, excluding embedded derivatives | 123 | $ 148 | |
Net amount | $ 307 | $ 644 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) | 6 Months Ended | |
Jun. 30, 2019USD ($)entity | Dec. 31, 2018USD ($) | |
Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 2,130,000,000 | $ 2,551,000,000 |
Liabilities | 1,489,000,000 | 1,636,000,000 |
Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated VIEs | 2,357,000,000 | 2,346,000,000 |
Unconsolidated VIEs | EFS | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated VIEs | 1,334,000,000 | 1,670,000,000 |
Unconsolidated VIEs | Insurance | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated VIEs | $ 502,000,000 | $ 0 |
GE Capital | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Number of VIEs | entity | 3 |
COMMITMENTS, GUARANTEES, PROD_3
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - Commitments (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($)aircraft | |
GE Capital | Investment Commitments | |
Long-term Purchase Commitment [Line Items] | |
Commitments | $ 3,037 |
GECAS | Aircraft with GE Engines | |
Long-term Purchase Commitment [Line Items] | |
Long-term purchase commitments | 32,550 |
Advances for pre-delivery payments | $ 3,153 |
GECAS | New Aircraft | |
Long-term Purchase Commitment [Line Items] | |
Number of aircrafts for delivery | aircraft | 377 |
Percentage of aircrafts to be delivered in 2019 | 15.00% |
Percentage of aircrafts to be delivered in 2020 | 20.00% |
Percentage of aircrafts to be delivered in 2021 through 2024 | 65.00% |
GECAS | Used Aircraft | |
Long-term Purchase Commitment [Line Items] | |
Long-term purchase commitments | $ 2,159 |
Number of aircrafts for delivery | aircraft | 57 |
Percentage of aircrafts to be delivered in 2019 | 47.00% |
Percentage of aircrafts to be delivered in 2020 | 37.00% |
Percentage of aircrafts to be delivered in 2021 through 2024 | 16.00% |
Aviation | |
Long-term Purchase Commitment [Line Items] | |
Financial assistance commitment | $ 2,365 |
COMMITMENTS, GUARANTEES, PROD_4
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - Guarantees (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Guarantor Obligations [Line Items] | ||
Liability for indemnification agreements | $ 18,832 | $ 21,219 |
Credit support | ||
Guarantor Obligations [Line Items] | ||
Commitments | 1,627 | |
Liability | 53 | |
Indemnification agreements | ||
Guarantor Obligations [Line Items] | ||
Commitments | 1,610 | |
Liability for indemnification agreements | 139 | |
Indemnification agreements - discontinued operations | ||
Guarantor Obligations [Line Items] | ||
Liability | 149 | |
Indemnification agreements - discontinued operations | Maximum | ||
Guarantor Obligations [Line Items] | ||
Commitments | $ 1,136 |
COMMITMENTS, GUARANTEES, PROD_5
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - Schedule of Product Warranties (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Movement in Standard Product Warranty Accrual | ||
Balance at January 1 | $ 2,428 | $ 2,268 |
Current-year provisions | 328 | 349 |
Expenditures | (332) | (417) |
Other changes | 38 | 144 |
Balance as of June 30 | $ 2,462 | $ 2,344 |
COMMITMENTS, GUARANTEES, PROD_6
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - WMC Legal Matters (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Apr. 30, 2019 | Jun. 30, 2019 | |
WMC Bankruptcy Case | GE Capital | ||
Loss Contingencies [Line Items] | ||
Estimated litigation settlement | $ 67 | |
Estimated liability | $ 211 | |
Violation of FIRREA by WMC and GE Capital | ||
Loss Contingencies [Line Items] | ||
Amount paid | $ 1,500 | |
Violation of FIRREA by WMC and GE Capital | GE Capital | ||
Loss Contingencies [Line Items] | ||
Debtor-in-possession financing, amount arranged | $ 25 |
COMMITMENTS, GUARANTEES, PROD_7
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - Alston Legacy Matters (Details) - Alstom Legacy Matters € in Millions, $ in Millions | Nov. 02, 2015USD ($)significant_case | Dec. 31, 2014USD ($) | Jan. 31, 2007EUR (€) | Jun. 30, 2019USD ($) |
Loss Contingencies [Line Items] | ||||
Number of significant cases involving anti-competitive activities and improper payments | significant_case | 2 | |||
Fine for participating in gas insulated switchgear cartel | € | € 65 | |||
Reduced fine | € | € 59 | |||
Criminal penalty paid | $ | $ 772 | |||
Reserve established for legal and compliance matters | $ | $ 858 | $ 872 |
CASH FLOWS INFORMATION (Details
CASH FLOWS INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
All other operating activities | |||
All other operating activities | $ (740) | $ (2,251) | |
All other investing activities | |||
All other investing activities | (968) | 3,713 | |
All other financing activities | |||
All other financing activities | (835) | (741) | |
GE | |||
All other operating activities | |||
Increase (decrease) in employee benefit liabilities | (861) | (506) | |
Other gains on investing activities | (45) | (449) | |
Restructuring and other charges | 721 | 1,198 | |
Restructuring and other cash expenditures | (775) | (807) | |
Increase (decrease) in equipment project accruals | (218) | (831) | |
Other | (186) | (289) | |
All other operating activities | (1,364) | (1,684) | |
All other investing activities | |||
Derivative settlements (net) | 30 | (489) | |
Investments in intangible assets (net) | (13) | (533) | |
Other investments (net) | 1,866 | 10 | |
Other | (326) | 130 | |
All other investing activities | 1,557 | (882) | |
All other financing activities | |||
Acquisition of noncontrolling interests | (28) | (627) | |
Dividends paid to noncontrolling interests | (232) | (159) | |
Other | (27) | 54 | |
All other financing activities | $ (287) | $ (732) | |
Other investments (net) - Wabtec | |||
All other investing activities | |||
Proceeds from secondary offering | $ 1,799 |
INTERCOMPANY TRANSACTIONS (Deta
INTERCOMPANY TRANSACTIONS (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities - continuing operations | $ 1,770 | $ (382) |
Total cash from (used for) investing activities - continuing operations | 1,646 | 5,266 |
Total cash from (used for) financing activities - continuing operations | (6,294) | (20,911) |
GE and GE Capital totals | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities - continuing operations | 437 | (1,003) |
Total cash from (used for) investing activities - continuing operations | 2,890 | 5,752 |
Total cash from (used for) financing activities - continuing operations | (6,206) | (20,775) |
GE and GE Capital totals | Affiliated Entity | GE current receivables sold to GE Capital | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities - continuing operations | 557 | 491 |
Total cash from (used for) investing activities - continuing operations | (1,294) | (1,469) |
Total cash from (used for) financing activities - continuing operations | 737 | 978 |
Cash payments received on deferred purchase price | 220 | 2,691 |
GE and GE Capital totals | Affiliated Entity | GE long-term receivables sold to GE Capital | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities - continuing operations | 269 | 738 |
Total cash from (used for) investing activities - continuing operations | (269) | (738) |
GE and GE Capital totals | Affiliated Entity | Supply chain finance programs | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities - continuing operations | 489 | 145 |
Total cash from (used for) investing activities - continuing operations | (489) | (145) |
GE and GE Capital totals | Affiliated Entity | GE Capital long-term loans to GE | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) investing activities - continuing operations | 0 | 920 |
Total cash from (used for) financing activities - continuing operations | 0 | (920) |
GE and GE Capital totals | Affiliated Entity | Capital contribution from GE to GE Capital | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) investing activities - continuing operations | 1,500 | 0 |
Total cash from (used for) financing activities - continuing operations | (1,500) | 0 |
Other reclassifications and eliminations | ||
Related Party Transaction [Line Items] | ||
Total cash from (used for) operating activities - continuing operations | 18 | (752) |
Total cash from (used for) investing activities - continuing operations | (692) | 946 |
Total cash from (used for) financing activities - continuing operations | $ 674 | $ (193) |
GUARANTOR FINANCIAL INFORMATI_3
GUARANTOR FINANCIAL INFORMATION - Condensed Consolidating Statement of Earnings (Loss) and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||
Revenues | $ 28,831 | $ 29,162 | $ 56,117 | $ 56,950 |
Costs and expenses | ||||
Interest and other financial charges | 991 | 1,291 | 2,123 | 2,573 |
Other costs and expenses | 28,106 | 27,520 | 53,863 | 53,954 |
Total costs and expenses | 29,097 | 28,812 | 55,986 | 56,527 |
Other income (loss) | (8) | 886 | 870 | 1,091 |
Equity in earnings (loss) of affiliates | 0 | 0 | 0 | 0 |
Earnings (loss) from continuing operations before income taxes | (274) | 1,236 | 1,001 | 1,513 |
Benefit (provision) for income taxes | 148 | (504) | (74) | (454) |
Earnings (loss) from continuing operations | (126) | 732 | 926 | 1,060 |
Earnings (loss) from discontinued operations, net of taxes | 231 | (63) | 2,823 | (1,504) |
Net earnings (loss) | 104 | 669 | 3,749 | (444) |
Less net earnings (loss) attributable to noncontrolling interests | (23) | (132) | 34 | (98) |
Net earnings (loss) attributable to the Company | 127 | 800 | 3,716 | (347) |
Other comprehensive income (loss) | 633 | (571) | 1,562 | 971 |
Comprehensive income (loss) attributable to the Company | 760 | 229 | 5,277 | 625 |
Goods and services | ||||
Revenues | ||||
Sales of goods and services | 26,788 | 27,151 | 52,130 | 53,153 |
GE Capital revenues from services | ||||
Revenues | ||||
Revenues | 2,043 | 2,011 | 3,987 | 3,797 |
Reportable Legal Entities | Parent Company Guarantor | ||||
Revenues | ||||
Revenues | 8,245 | 7,947 | 12,825 | 15,651 |
Costs and expenses | ||||
Interest and other financial charges | 541 | 74 | 632 | (8) |
Other costs and expenses | 4,663 | 13,486 | 13,445 | 23,085 |
Total costs and expenses | 5,205 | 13,560 | 14,077 | 23,077 |
Other income (loss) | 3,529 | 1,621 | (3,211) | 1,896 |
Equity in earnings (loss) of affiliates | (6,727) | 4,442 | 8,198 | 7,034 |
Earnings (loss) from continuing operations before income taxes | (159) | 450 | 3,735 | 1,503 |
Benefit (provision) for income taxes | 48 | 471 | (287) | (177) |
Earnings (loss) from continuing operations | (110) | 921 | 3,448 | 1,326 |
Earnings (loss) from discontinued operations, net of taxes | 238 | (121) | 268 | (1,673) |
Net earnings (loss) | 127 | 800 | 3,716 | (347) |
Less net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to the Company | 127 | 800 | 3,716 | (347) |
Other comprehensive income (loss) | 633 | (571) | 1,562 | 971 |
Comprehensive income (loss) attributable to the Company | 760 | 229 | 5,277 | 625 |
Reportable Legal Entities | Parent Company Guarantor | Goods and services | ||||
Revenues | ||||
Sales of goods and services | 8,245 | 7,947 | 12,825 | 15,651 |
Reportable Legal Entities | Parent Company Guarantor | GE Capital revenues from services | ||||
Revenues | ||||
Revenues | 0 | 0 | 0 | 0 |
Reportable Legal Entities | Subsidiary Issuer | ||||
Revenues | ||||
Revenues | 245 | 233 | 479 | 441 |
Costs and expenses | ||||
Interest and other financial charges | 241 | 230 | 472 | 436 |
Other costs and expenses | 0 | 0 | 0 | 0 |
Total costs and expenses | 241 | 230 | 472 | 436 |
Other income (loss) | 0 | 0 | 0 | 0 |
Equity in earnings (loss) of affiliates | 0 | 0 | 0 | 0 |
Earnings (loss) from continuing operations before income taxes | 4 | 3 | 7 | 5 |
Benefit (provision) for income taxes | (1) | 0 | (1) | (1) |
Earnings (loss) from continuing operations | 4 | 3 | 6 | 4 |
Earnings (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | 0 |
Net earnings (loss) | 4 | 3 | 6 | 4 |
Less net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to the Company | 4 | 3 | 6 | 4 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to the Company | 4 | 3 | 6 | 4 |
Reportable Legal Entities | Subsidiary Issuer | Goods and services | ||||
Revenues | ||||
Sales of goods and services | 0 | 0 | 0 | 0 |
Reportable Legal Entities | Subsidiary Issuer | GE Capital revenues from services | ||||
Revenues | ||||
Revenues | 245 | 233 | 479 | 441 |
Reportable Legal Entities | Subsidiary Guarantor | ||||
Revenues | ||||
Revenues | 11 | 326 | 86 | 551 |
Costs and expenses | ||||
Interest and other financial charges | 332 | 617 | 712 | 1,164 |
Other costs and expenses | 38 | 0 | 39 | 0 |
Total costs and expenses | 371 | 617 | 750 | 1,163 |
Other income (loss) | 0 | 0 | 0 | 0 |
Equity in earnings (loss) of affiliates | 469 | (127) | 845 | 493 |
Earnings (loss) from continuing operations before income taxes | 110 | (418) | 181 | (119) |
Benefit (provision) for income taxes | 0 | 0 | 0 | 0 |
Earnings (loss) from continuing operations | 110 | (418) | 181 | (119) |
Earnings (loss) from discontinued operations, net of taxes | 2 | (63) | 2 | (81) |
Net earnings (loss) | 112 | (482) | 182 | (200) |
Less net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings (loss) attributable to the Company | 112 | (482) | 182 | (200) |
Other comprehensive income (loss) | (22) | (94) | (1,104) | (55) |
Comprehensive income (loss) attributable to the Company | 89 | (575) | (922) | (254) |
Reportable Legal Entities | Subsidiary Guarantor | Goods and services | ||||
Revenues | ||||
Sales of goods and services | 0 | 0 | 0 | 0 |
Reportable Legal Entities | Subsidiary Guarantor | GE Capital revenues from services | ||||
Revenues | ||||
Revenues | 11 | 326 | 86 | 551 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||
Revenues | ||||
Revenues | 27,193 | 43,593 | 68,228 | 83,131 |
Costs and expenses | ||||
Interest and other financial charges | 110 | 872 | 750 | 1,702 |
Other costs and expenses | 5,931 | 38,881 | 44,748 | 77,458 |
Total costs and expenses | 6,042 | 39,753 | 45,499 | 79,160 |
Other income (loss) | (8,832) | 2,970 | 8,131 | 1,097 |
Equity in earnings (loss) of affiliates | 16,162 | 12,249 | 27,175 | 12,090 |
Earnings (loss) from continuing operations before income taxes | 28,481 | 19,059 | 58,036 | 17,159 |
Benefit (provision) for income taxes | 366 | (1,162) | (292) | (562) |
Earnings (loss) from continuing operations | 28,847 | 17,897 | 57,744 | 16,596 |
Earnings (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | 1 |
Net earnings (loss) | 28,847 | 17,897 | 57,744 | 16,597 |
Less net earnings (loss) attributable to noncontrolling interests | 4 | (116) | 4 | (121) |
Net earnings (loss) attributable to the Company | 28,843 | 18,013 | 57,740 | 16,719 |
Other comprehensive income (loss) | 0 | (2,509) | (443) | (1,631) |
Comprehensive income (loss) attributable to the Company | 28,843 | 15,503 | 57,297 | 15,087 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | Goods and services | ||||
Revenues | ||||
Sales of goods and services | 25,141 | 41,000 | 63,597 | 78,980 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | GE Capital revenues from services | ||||
Revenues | ||||
Revenues | 2,052 | 2,593 | 4,631 | 4,151 |
Consolidating Adjustments | ||||
Revenues | ||||
Revenues | (6,863) | (22,937) | (25,501) | (42,824) |
Costs and expenses | ||||
Interest and other financial charges | (234) | (502) | (442) | (720) |
Other costs and expenses | 17,473 | (24,845) | (4,369) | (46,588) |
Total costs and expenses | 17,239 | (25,347) | (4,811) | (47,308) |
Other income (loss) | 5,295 | (3,705) | (4,049) | (1,902) |
Equity in earnings (loss) of affiliates | (9,904) | (16,563) | (36,218) | (19,617) |
Earnings (loss) from continuing operations before income taxes | (28,711) | (17,858) | (60,957) | (17,035) |
Benefit (provision) for income taxes | (266) | 188 | 506 | 286 |
Earnings (loss) from continuing operations | (28,977) | (17,670) | (60,452) | (16,748) |
Earnings (loss) from discontinued operations, net of taxes | (9) | 121 | 2,553 | 249 |
Net earnings (loss) | (28,986) | (17,550) | (57,899) | (16,500) |
Less net earnings (loss) attributable to noncontrolling interests | (28) | (16) | 30 | 24 |
Net earnings (loss) attributable to the Company | (28,959) | (17,534) | (57,929) | (16,523) |
Other comprehensive income (loss) | 22 | 2,603 | 1,547 | 1,686 |
Comprehensive income (loss) attributable to the Company | (28,936) | (14,931) | (56,382) | (14,837) |
Consolidating Adjustments | Goods and services | ||||
Revenues | ||||
Sales of goods and services | (6,598) | (21,796) | (24,292) | (41,478) |
Consolidating Adjustments | GE Capital revenues from services | ||||
Revenues | ||||
Revenues | $ (265) | $ (1,141) | $ (1,209) | $ (1,346) |
GUARANTOR FINANCIAL INFORMATI_4
GUARANTOR FINANCIAL INFORMATION - Condensed Consolidating Statement of Financial Position (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Assets | |||
Cash, cash equivalents and restricted cash | $ 31,968 | $ 34,847 | $ 27,545 |
Receivables - net | 30,191 | 33,857 | |
Investment in subsidiaries | 0 | 0 | |
All other assets | 249,950 | 240,880 | |
Total assets | 312,109 | 309,585 | |
Liabilities and equity | |||
Short-term borrowings | 15,620 | 12,821 | |
Long-term and non-recourse borrowings | 90,158 | 97,109 | |
All other liabilities | 150,202 | 148,174 | |
Total liabilities | 255,980 | 258,104 | |
Total liabilities and equity | 312,109 | 309,585 | |
Reportable Legal Entities | Parent Company Guarantor | |||
Assets | |||
Cash, cash equivalents and restricted cash | 8,639 | 9,561 | 1,852 |
Receivables - net | 46,050 | 28,426 | |
Investment in subsidiaries | 183,102 | 215,434 | |
All other assets | 37,287 | 29,612 | |
Total assets | 275,079 | 283,033 | |
Liabilities and equity | |||
Short-term borrowings | 143,998 | 150,426 | |
Long-term and non-recourse borrowings | 47,641 | 59,800 | |
All other liabilities | 65,106 | 41,826 | |
Total liabilities | 256,745 | 252,052 | |
Total liabilities and equity | 275,079 | 283,033 | |
Reportable Legal Entities | Subsidiary Issuer | |||
Assets | |||
Cash, cash equivalents and restricted cash | 0 | 0 | 0 |
Receivables - net | 17,601 | 17,467 | |
Investment in subsidiaries | 0 | 0 | |
All other assets | 110 | 12 | |
Total assets | 17,711 | 17,479 | |
Liabilities and equity | |||
Short-term borrowings | 0 | 0 | |
Long-term and non-recourse borrowings | 16,559 | 16,115 | |
All other liabilities | 101 | 336 | |
Total liabilities | 16,660 | 16,452 | |
Total liabilities and equity | 17,711 | 17,479 | |
Reportable Legal Entities | Subsidiary Guarantor | |||
Assets | |||
Cash, cash equivalents and restricted cash | 0 | 0 | 3 |
Receivables - net | 20 | 2,792 | |
Investment in subsidiaries | 45,441 | 45,832 | |
All other assets | 0 | 0 | |
Total assets | 45,462 | 48,623 | |
Liabilities and equity | |||
Short-term borrowings | 6,619 | 9,854 | |
Long-term and non-recourse borrowings | 25,402 | 24,341 | |
All other liabilities | 216 | 245 | |
Total liabilities | 32,237 | 34,439 | |
Total liabilities and equity | 45,462 | 48,623 | |
Reportable Legal Entities | Non- Guarantor Subsidiaries | |||
Assets | |||
Cash, cash equivalents and restricted cash | 23,913 | 25,975 | 26,323 |
Receivables - net | 60,972 | 69,268 | |
Investment in subsidiaries | 710,678 | 733,535 | |
All other assets | 322,236 | 359,066 | |
Total assets | 1,117,800 | 1,187,844 | |
Liabilities and equity | |||
Short-term borrowings | 8,186 | 9,649 | |
Long-term and non-recourse borrowings | 44,901 | 41,066 | |
All other liabilities | 141,194 | 153,166 | |
Total liabilities | 194,281 | 203,881 | |
Total liabilities and equity | 1,117,800 | 1,187,844 | |
Consolidating Adjustments | |||
Assets | |||
Cash, cash equivalents and restricted cash | (585) | (689) | $ (634) |
Receivables - net | (94,452) | (84,095) | |
Investment in subsidiaries | (939,222) | (994,801) | |
All other assets | (109,684) | (147,810) | |
Total assets | (1,143,943) | (1,227,394) | |
Liabilities and equity | |||
Short-term borrowings | (143,183) | (157,108) | |
Long-term and non-recourse borrowings | (11,226) | (44,213) | |
All other liabilities | (56,415) | (47,399) | |
Total liabilities | (243,943) | (248,720) | |
Total liabilities and equity | $ (1,143,943) | $ (1,227,394) |
GUARANTOR FINANCIAL INFORMATI_5
GUARANTOR FINANCIAL INFORMATION - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Guarantor Obligations [Line Items] | |||
Cash from (used for) operating activities | $ 20 | $ (675) | |
Cash from (used for) investing activities | 3,329 | 5,437 | |
Cash from (used for) financing activities | (6,336) | (20,913) | |
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | 1 | (285) | |
Increase (decrease) in cash, cash equivalents and restricted cash | (2,986) | (16,436) | |
Cash, cash equivalents and restricted cash at beginning of year | 35,548 | 44,724 | |
Cash, cash equivalents and restricted cash at June 30 | 32,562 | 28,288 | |
Less cash, cash equivalents and restricted cash of discontinued operations at June 30 | 594 | 744 | |
Cash, cash equivalents and restricted cash of continuing operations at June 30 | 31,968 | 27,545 | $ 34,847 |
Cash from (used for) operating activities – discontinued operations | (1,749) | (293) | |
Reportable Legal Entities | Parent Company Guarantor | |||
Guarantor Obligations [Line Items] | |||
Cash from (used for) operating activities | (3,564) | 10,952 | |
Cash from (used for) investing activities | 20,887 | 12,523 | |
Cash from (used for) financing activities | (18,245) | (25,094) | |
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | |
Increase (decrease) in cash, cash equivalents and restricted cash | (922) | (1,620) | |
Cash, cash equivalents and restricted cash at beginning of year | 9,561 | 3,472 | |
Cash, cash equivalents and restricted cash at June 30 | 8,639 | 1,852 | |
Less cash, cash equivalents and restricted cash of discontinued operations at June 30 | 0 | 0 | |
Cash, cash equivalents and restricted cash of continuing operations at June 30 | 8,639 | 1,852 | 9,561 |
Cash from (used for) operating activities – discontinued operations | (2,048) | (2,441) | |
Reportable Legal Entities | Subsidiary Issuer | |||
Guarantor Obligations [Line Items] | |||
Cash from (used for) operating activities | 341 | (123) | |
Cash from (used for) investing activities | (341) | 193 | |
Cash from (used for) financing activities | 0 | (70) | |
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | |
Increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | |
Cash, cash equivalents and restricted cash at beginning of year | 0 | 0 | |
Cash, cash equivalents and restricted cash at June 30 | 0 | 0 | |
Less cash, cash equivalents and restricted cash of discontinued operations at June 30 | 0 | 0 | |
Cash, cash equivalents and restricted cash of continuing operations at June 30 | 0 | 0 | 0 |
Reportable Legal Entities | Subsidiary Guarantor | |||
Guarantor Obligations [Line Items] | |||
Cash from (used for) operating activities | (1,272) | (117) | |
Cash from (used for) investing activities | 820 | (882) | |
Cash from (used for) financing activities | 452 | 999 | |
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | |
Increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | |
Cash, cash equivalents and restricted cash at beginning of year | 0 | 3 | |
Cash, cash equivalents and restricted cash at June 30 | 0 | 3 | |
Less cash, cash equivalents and restricted cash of discontinued operations at June 30 | 0 | 0 | |
Cash, cash equivalents and restricted cash of continuing operations at June 30 | 0 | 3 | 0 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | |||
Guarantor Obligations [Line Items] | |||
Cash from (used for) operating activities | (558) | 9,711 | |
Cash from (used for) investing activities | 105,020 | (21,946) | |
Cash from (used for) financing activities | (106,630) | (2,406) | |
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | 1 | (285) | |
Increase (decrease) in cash, cash equivalents and restricted cash | (2,168) | (14,926) | |
Cash, cash equivalents and restricted cash at beginning of year | 26,676 | 41,993 | |
Cash, cash equivalents and restricted cash at June 30 | 24,508 | 27,067 | |
Less cash, cash equivalents and restricted cash of discontinued operations at June 30 | 594 | 744 | |
Cash, cash equivalents and restricted cash of continuing operations at June 30 | 23,913 | 26,323 | 25,975 |
Consolidating Adjustments | |||
Guarantor Obligations [Line Items] | |||
Cash from (used for) operating activities | 5,073 | (21,098) | |
Cash from (used for) investing activities | (123,057) | 15,549 | |
Cash from (used for) financing activities | 118,087 | 5,658 | |
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | |
Increase (decrease) in cash, cash equivalents and restricted cash | 104 | 110 | |
Cash, cash equivalents and restricted cash at beginning of year | (689) | (743) | |
Cash, cash equivalents and restricted cash at June 30 | (585) | (634) | |
Less cash, cash equivalents and restricted cash of discontinued operations at June 30 | 0 | 0 | |
Cash, cash equivalents and restricted cash of continuing operations at June 30 | $ (585) | $ (634) | $ (689) |
SEGMENT OPERATIONS (Details)
SEGMENT OPERATIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 28,831 | $ 29,162 | $ 56,117 | $ 56,950 |
Revenues, V% | (1.00%) | (1.00%) | ||
Corporate items and eliminations | $ (274) | 1,236 | $ 1,001 | 1,513 |
Goodwill impairments | (744) | 0 | (744) | 0 |
Interest and other financial charges | (991) | (1,291) | (2,123) | (2,573) |
Non-operating benefit costs | (557) | (690) | (1,123) | (1,376) |
Benefit (provision) for income taxes | 148 | (504) | (74) | (454) |
Earnings (loss) from continuing operations attributable to GE common shareowners | (291) | 679 | $ 663 | 940 |
Earnings (loss) from continuing operations attributable to GE common shareowners, V% | (29.00%) | |||
Earnings (loss) from discontinued operations, net of taxes | 231 | (63) | $ 2,823 | (1,504) |
Less net earnings attributable to noncontrolling interests, discontinued operations | $ 0 | 1 | (2) | 4 |
Less net earnings attributable to noncontrolling interests, discontinued operations, V% | (100.00%) | |||
Earnings (loss) from discontinued operations, net of tax and noncontrolling interest | $ 231 | (64) | 2,825 | (1,508) |
Net earnings (loss) attributable to GE common shareowners | (61) | 615 | 3,488 | (568) |
Oil & Gas | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other charges | 135 | 148 | 194 | 473 |
Operating profit excluding restructuring and other charges | 217 | 222 | 439 | 403 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 29,392 | 29,623 | $ 57,027 | 57,783 |
Revenues, V% | (1.00%) | (1.00%) | ||
Segment profit (loss) | $ 2,270 | 2,762 | $ 4,933 | 5,095 |
Segment profit (loss), V% | (18.00%) | (3.00%) | ||
Operating Segments | Total industrial segment revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 27,071 | 27,195 | $ 52,479 | 53,181 |
Revenues, V% | 0.00% | (1.00%) | ||
Segment profit (loss) | $ 2,359 | 2,969 | $ 4,887 | 5,518 |
Segment profit (loss), V% | (21.00%) | (11.00%) | ||
Operating Segments | Power | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 4,681 | 6,261 | $ 9,298 | 12,209 |
Revenues, V% | (25.00%) | (24.00%) | ||
Segment profit (loss) | $ 117 | 410 | $ 228 | 654 |
Segment profit (loss), V% | (71.00%) | (65.00%) | ||
Goodwill impairments | $ 0 | |||
Operating Segments | Renewable Energy | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 3,627 | 2,883 | $ 6,165 | 5,722 |
Revenues, V% | 26.00% | 8.00% | ||
Segment profit (loss) | $ (184) | 85 | $ (371) | 196 |
Goodwill impairments | (744) | |||
Operating Segments | Aviation | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 7,877 | 7,519 | $ 15,831 | 14,631 |
Revenues, V% | 5.00% | 8.00% | ||
Segment profit (loss) | $ 1,385 | 1,475 | $ 3,046 | 3,078 |
Segment profit (loss), V% | (6.00%) | (1.00%) | ||
Goodwill impairments | $ 0 | |||
Operating Segments | Healthcare | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 4,934 | 4,978 | $ 9,616 | 9,680 |
Revenues, V% | (1.00%) | (1.00%) | ||
Segment profit (loss) | $ 958 | 926 | $ 1,740 | 1,660 |
Segment profit (loss), V% | 3.00% | 5.00% | ||
Goodwill impairments | $ 0 | |||
Operating Segments | Oil & Gas | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 5,953 | 5,554 | $ 11,569 | 10,939 |
Revenues, V% | 7.00% | 6.00% | ||
Segment profit (loss) | $ 82 | 73 | $ 245 | (70) |
Segment profit (loss), V% | 12.00% | |||
Goodwill impairments | 0 | |||
Operating Segments | Capital | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,321 | 2,429 | $ 4,548 | 4,602 |
Revenues, V% | (4.00%) | (1.00%) | ||
Segment profit (loss) | $ (89) | (207) | $ 46 | (422) |
Segment profit (loss), V% | 57.00% | |||
Goodwill impairments | 0 | |||
Corporate Items and Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (561) | (462) | $ (910) | (833) |
Revenues, V% | (21.00%) | (9.00%) | ||
Corporate items and eliminations | $ (956) | (222) | $ (1,165) | (886) |
Corporate items and eliminations, V% | (31.00%) | |||
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill impairments | $ (744) | 0 | $ (744) | 0 |
GE goodwill impairments, V% | 0.00% | 0.00% | ||
Interest and other financial charges | $ (444) | (686) | $ (1,032) | (1,326) |
GE interest and other financial charges, V% | 35.00% | 22.00% | ||
Non-operating benefit costs | $ (554) | (688) | $ (1,115) | (1,369) |
GE non-operating benefit costs, V% | 19.00% | 19.00% | ||
Benefit (provision) for income taxes | $ 137 | $ (487) | $ (213) | $ (576) |
GE benefit (provision) for income taxes, V% | 63.00% |