2015 4Q

GE 4Q’15
supplemental information
• Orders & backlog by segment
• Equipment orders
• Equipment/service revenue by segment – 4Q’15
• Equipment/service revenue by segment – TY’15
• GE Industrial segment organic revenue growth*
• GE Industrial segment organic op profit growth*
• Power, Renewable Energy, & Energy Management
organic op profit growth*
• Oil & Gas & Healthcare organic op profit growth*
• Organic revenue by segment*
• Units summary – orders
• Units summary – sales
• Regional summary
• Alstom results & EPS impact
• Corporate operating profit (cost)*
• Industrial segment gross margins*
• Industrial segment operating profit margins*
• Industrial operating profit margins*
• Operating earnings & EPS*
• Industrial operating EPS*
• Industrial operating plus Verticals earnings & EPS*
• GE effective tax rate (ex-GE Capital)*
Imagination at work.
• Industrial CFOA from continuing
operations*
• Free cash flow*
• GAAP & Industrial Operating
plus Verticals EPS*
• GE Capital segment results
• Capital Verticals results
• GE Capital segment assets
• GE Capital nonaccrual/net
charge-offs
• GE Capital funding
• GE Capital leverage ratio*
• GE Capital tier 1 common ratio estimate*
• Capital ending net investment*
• GE Capital reserves
• Non-GAAP supplemental information
* Non-GAAP financial measures. See the following pages
for reconciliations of these measures to the most directly
comparable GAAP financial measures. Also see the NonGAAP supplemental materials section for descriptions of
non-GAAP financial measures and the reasons we believe
that they provide useful information to investors.
Orders & backlog by segment
($ in billions)
4Q'15
Orders
$9.6
8.6
1.0
V%
40%
25
-
TY'15
Orders
$23.3
22.2
1.0
V%
14%
9
-
4Q'15
Backlog
$77.1
61.6
15.5
V%
32%
5
-
Renewable Energy
- Core
- Alstom
2.5
2.0
0.5
1
(18)
-
7.5
7.0
0.5
5
(2)
-
12.4
7.1
5.3
F
27
-
Oil & Gas
3.3
(35)
15.1
(25)
22.9
(9)
Energy Management
- Core
- Alstom
2.6
1.5
1.1
15
(32)
-
8.8
7.7
1.1
5
(8)
-
11.7
3.4
8.4
F
(33)/--a)
-
Aviation
6.8
(16)
28.4
(4)
151.2
13
Healthcare
5.2
(4)
18.6
(3)
17.2
4
Transportation
3.2
66
7.0
(28)
22.4
6
Infrastructure
- Core
- Alstom
$32.5
30.1
2.6
3%
(5)
-
(5)%
(7)
-
$314.5
285.3
29.2
Power
- Core
- Alstom
$105.9
103.4
2.6
18%
7
-
Note: Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from
the underlying numbers in millions
(a- Core Energy Management 0%, adjusted for Digital Energy in prior year and dispositions
2
Equipment orders
($ in billions)
Power
- Core
- Alstom
1Q'15 V%
$0.9 (45)%
2Q'15 V%
$1.8 40%
3Q'15 V%
$1.7 13%
4Q'15 V%
$5.0 58%
4.6 46%
0.4
-
TY'15
$9.4
9.0
0.4
V%
24%
19%
-
Renewable Energy
- Core
- Alstom
0.8
(10)
2.0
24
1.7
2
2.3
1.9
0.4
(1)
(20)
-
6.9
6.5
0.4
4
(2)
-
Oil & Gas
2.2
(10)
2.2
(14)
1.1
(61)
1.2
(52)
6.6
(35)
Energy Management
- Core
- Alstom
1.5
(6)
1.5
6
1.6
6
2.0
1.1
0.9
20
(34)
-
6.5
5.7
0.9
7
(7)
-
Aviation
3.9
64
4.0
37
2.8
(58)
2.8
(36)
13.6
(18)
Healthcare
2.3
(1)
2.7
(3)
2.6
(5)
3.2
(5)
10.8
(4)
Transportation
0.8
(56)
0.5
(19)
0.1
(95)
2.6
F
4.0
(40)
Infrastructure
- Core
- Alstom
$12.0 (5)%
$14.5 11%
$11.2 (43)%
$18.7 2%
17.1 (7)%
1.7
-
Note: Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from
the underlying numbers in millions
$56.5 (11)%
54.8 (14)%
1.7
3
Equipment/service revenue by segment - 4Q’15
($ in billions)
4Q'15
Equipment
$2.5
2.2
0.3
V%
(17)%
(25)
-
4Q'15
Services
$4.6
4.0
0.7
V%
18%
1
-
4Q'15
Total
$7.1
6.2
0.9
V%
3%
(10)
-
Renewable Energy
- Core
- Alstom
1.8
1.7
0.1
(19)
(22)
-
0.2
0.1
0.0
37
14
-
1.9
1.9
0.1
(16)
(20)
-
Oil & Gas
2.1
(21)
2.2
(9)
4.4
(16)
Energy Management
- Core
- Alstom
1.8
1.0
0.8
28
(30)
-
0.6
0.4
0.1
(23)
-
2.4
1.4
1.0
20
(28)
-
Aviation
3.2
(6)
3.5
18
6.7
5
Healthcare
3.0
(3)
2.0
(4)
5.0
(3)
Transportation
1.0
17
0.6
(16)
1.6
2
2.2
$17.5
16.4
1.1
(1)
(7)%
(13)%
-
0.1
$13.8
13.0
0.8
(1)
7%
-%
-
2.3
$31.4
29.4
2.0
(1)
(1)%
(7)%
-
Power
- Core
- Alstom
Appliances & Lighting
Industrial segments
- Core
- Alstom
Note: Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from
the underlying numbers in millions
4
Equipment/service revenue by segment - TY’15
($ in billions)
TY'15
Equipment
$8.0
7.7
0.3
V%
(5)%
(8)
-
TY'15
Services
$13.5
12.8
0.7
V%
11%
5
-
TY'15
Total
$21.5
20.6
0.9
V%
4%
-
Renewable Energy
- Core
- Alstom
5.8
5.7
0.1
(3)
(4)
-
0.5
0.5
0.0
12
6
-
6.3
6.2
0.1
(2)
(3)
-
Oil & Gas
8.3
(18)
8.1
(9)
16.5
(14)
Energy Management
- Core
- Alstom
5.6
4.8
0.8
7
(9)
-
2.0
1.9
0.1
(3)
(10)
-
7.6
6.6
1.0
4
(9)
-
Aviation
11.8
(5)
12.9
11
24.7
3
Healthcare
9.9
(4)
7.8
(3)
17.6
(4)
Transportation
3.2
12
2.7
(2)
5.9
5
Appliances & Lighting
8.3
5
0.4
(3)
8.8
4
Industrial segments
- Core
- Alstom
$60.9
59.8
1.1
(4)%
(6)%
-
$47.9
47.1
0.8
3%
1%
-
$108.8
106.8
2.0
(1)%
(3)%
-
Power
- Core
- Alstom
Note: Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from
the underlying numbers in millions
5
Non-GAAP reconciliation
GE Industrial segment organic revenue growth
($ in millions)
4Q'15
4Q'14
V%
$31,352
$31,772
(1)%
737
707
Industrial segment revenues excluding the
effects of acquisitions, business dispositions
(other than dispositions of businesses
acquired for investment), currency
exchange rates (Non-GAAP)
$30,615
$31,065
Industrial segment revenue (GAAP)
Less the effects of:
Acquisitions, business dispositions
(other than dispositions of businesses
acquired for investment) & currency
exchange rates
TY'15
$108,796 $109,727
(2,479)
(1)%
TY'14
V%
(1)%
1,270
$111,276 $108,457
3%
Note: Certain columns and rows may not add due to the use of rounded
numbers. Percentages presented are calculated from the underlying numbers
in millions
6
Non-GAAP reconciliation
GE Industrial segment organic op profit growth
($ in millions)
4Q'15
Industrial segment op profit (GAAP)
Less the effects of:
Acquisitions, business dispositions
(other than dispositions of businesses
acquired for investment) & currency
exchange rates
Industrial segment op profit excluding the
effects of acquisitions, business dispositions
(other than dispositions of businesses
acquired for investment), currency
exchange rates (Non-GAAP)
4Q'14
$5,522
$5,988
(318)
104
$5,840
$5,883
V%
TY'15
TY'14
V%
(8)%
$17,966
$17,764
1%
(799)
193
$18,766
$17,570
(1)%
7%
Note: Certain columns and rows may not add due to the use of rounded
numbers. Percentages presented are calculated from the underlying numbers
in millions.
7
Non-GAAP reconciliation
Power, Renewable Energy, & Energy Management
organic op profit growth
($ in millions)
Power
4Q'15 4Q'14
Segment op profit (GAAP)
Less the effects of:
Acquisitions, business
dispositions (other than
dispositions of businesses
acquired for investment) &
currency exchange rates
V%
$1,628 $1,804 (10)%
(74)
-
Segment op profit excluding
the effects of acquisitions,
business dispositions
(other than dispositions of
businesses acquired for
investment), & currency
exchange rates (NonGAAP)
$1,702 $1,804
Renewable Energy
4Q'15 4Q'14 V%
$56
(80)
(6)%
$136
$269 (79)%
2
$268 (49)%
Energy Management
4Q'15 4Q'14 V%
$33
(24)
$56
$113 (71)%
65
$48 17%
Note: Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from the
underlying numbers in millions.
8
Non-GAAP reconciliation
Oil & Gas and Healthcare organic op profit growth
($ in millions)
Oil & Gas
4Q'15
4Q'14
Segment op profit (GAAP)
Less the effects of:
Acquisitions, business dispositions
(other than dispositions of businesses
acquired for investment) & currency
exchange rates
Segment op profit excluding the
effects of acquisitions, business dispositions
(other than dispositions of businesses
acquired for investment), currency
exchange rates (Non-GAAP)
$715
V%
$881 (19)%
(93)
9
$808
$873
(7)%
Healthcare
4Q'15
4Q'14
$938
$1,020
(40)
(3)
$978
$1,023
V%
(8)%
(4)%
Note: Certain columns and rows may not add due to the use of rounded
numbers. Percentages presented are calculated from the underlying numbers
in millions.
9
Non-GAAP reconciliation
Organic revenue by segment
($ in millions)
Power
Reported Revenue-a)
Less Acq./Disp. & FX
Organic Revenue-b)
Renewable Energy
Reported Revenue-a)
Less Acq./Disp. & FX
Organic Revenue-b)
Oil & Gas
Reported Revenue-a)
Less Acq./Disp. & FX
Organic Revenue-b)
Energy Management
Reported Revenue-a)
Less Acq./Disp. & FX
Organic Revenue-b)
Aviation
Reported Revenue-a)
Less Acq./Disp. & FX
Organic Revenue-b)
Healthcare
Reported Revenue-a)
Less Acq./Disp. & FX
Organic Revenue-b)
Transportation
Reported Revenue-a)
Less Acq./Disp. & FX
Organic Revenue-b)
Appliances & Lighting
Reported Revenue-a)
Less Acq./Disp. & FX
Organic Revenue-b)
4Q'15
4Q'14
V%
TY'15
7,085
692
6,393
6,867
6,867
3%
1,938
(110)
2,048
2,319
16
2,303
(16)%
4,355
(437)
4,792
5,162
37
5,125
(16)%
2,375
866
1,509
1,978
473
1,506
20%
6,734
6,734
6,424
4
6,421
5%
4,973
(261)
5,234
5,133
34
5,100
(3)%
1,612
21
1,591
1,577
144
1,433
2%
2,282
(32)
2,314
2,310
2,310
(7)%
(11)%
(6)%
0%
5%
3%
11%
(1)%
0%
TY’14
V%
21,490
82
21,408
20,580
29
20,551
4%
6,273
(506)
6,779
6,399
51
6,348
(2)%
16,450
(1,427)
17,878
19,085
349
18,735
(14)%
7,600
459
7,141
7,319
481
6,839
4%
24,660
(1)
24,661
23,990
125
23,865
3%
17,639
(985)
18,625
18,299
90
18,210
(4)%
5,933
21
5,913
5,650
144
5,506
5%
8,751
(120)
8,871
8,404
8,404
4%
Note: Certain columns and rows may not add due to the use of rounded numbers. Percentages are calculated from the underlying numbers in millions
(a- GAAP
(b- Non-GAAP
4%
7%
(5)%
4%
3%
2%
7%
6%
10
Units summary – orders
4Q'15
Power:
Gas Turbines
4Q'14
V
TY'15
TY'14
V
55
41
14
116
105
11
827
1,251
(424)
2,912
3,227
(315)
Aviation:
CEO engines
GEnx engines-a)
Military engines
Spares rate-b)
515
68
72
$39.0
1,568
165
63
$35.6
(1,053)
(97)
9
$3.4
3,598
237
387
$38.8
4,801
200
739
$31.2
(1,203)
37
(352)
$7.7
Transportation:
Locomotives
1,113
284
829
1,426
1,812
(386)
Renewable Energy:
Wind Turbines
(a - GEnx engines are a subset of CEO engines
(b - Commercial spares rate in millions of dollars per day
11
Units summary – sales
4Q'15
Power:
Gas Turbines
4Q'14
V
TY'15
TY'14
V
28
44
(16)
107
108
(1)
847
1,081
(234)
2,860
2,879
(19)
Aviation:
CEO engines
GEnx engines-a)
Military engines
Spares rate-b)
643
59
265
$37.0
658
77
264
$32.7
(15)
(18)
1
$4.3
2,588
260
766
$37.1
2,571
287
1,068
$30.2
17
(27)
(302)
$6.9
Transportation:
Locomotives
320
234
86
985
796
189
Renewable Energy:
Wind Turbines
(a - GEnx engines are a subset of CEO engines
(b - Commercial spares rate in millions of dollars per day
12
Regional summary
($ in billions)
Infrastructure Orders
4Q'15
Resource Rich-a)
Asia-b)
V%
TY'15
Industrial Segment Revenues
V%
4Q'15
V%
TY'15
V%
$9.7
(4)%
$30.8
(15)%
$8.9
(6)%
$30.2
(3)%
6.7
78
15.8
19
4.0
14
12.4
7
Growth Regions
$16.4
18%
$46.7
(6)%
$12.9
(1)%
$42.6
0%
Developed-c)
$16.2
(9)%
$59.2
(5)%
$18.5
(2)%
$66.2
(1)%
Total
$32.5
3%
$105.9
(5)%
$31.4
(1)%
$108.8
(1)%
(a- Resource Rich: Australia & New Zealand, Canada, Latin America, MENAT, Russia/CIS, & Sub-Saharan Africa
(b- Asia: ASEAN, China & India
(c- Developed: US, Europe, Japan, & Korea
Note: Individual amounts are rounded. As a result, the sum of the parts presented may not add to the total
13
Alstom results and EPS impact
Key metrics
Financial impact
($ in millions)
($ in billions, except EPS)
Orders
Power
Renewable Energy
Grid-a)
Segment orders
4Q’15
$1,030
469
1,058
$2,557
Revenue
Power
Renewable Energy
Grid-a)
Segment revenue
4Q’15
$917
87
952
$1,956
Op profit
Power
Renewable Energy
Grid-a)
Segment op profit
Digital Energy
Segment Alstom impact
Corporate
Total op profit
4Q’15
(80)
(69)
(5)
$(154)
(80)
$(234)
(160)
$(394)
Operations
4Q’15
$(0.0)
Cost synergy benefits
-
Synergy investment
-
Acquisition accounting
(0.2)
Deal/integration costs
(0.0)
JV minority interest
0.0
Segment op profit
$(0.2)
Corporate charges
− Deal costs/synergy inv.
(0.1)
− Acquisition accounting
(0.1)
Net tax benefits
EPS
$0.4
$-
14
(a- Includes GE’s Digital Energy business
Non-GAAP reconciliation
Corporate operating profit (cost)
($ in millions)
4Q'15
4Q'14
TY'15
TY'14
Gains (losses) on disposed businesses & settlements
$998
$-
$1,497
$91
Principal retirement plans-a)
(640)
(568)
(2,760)
(2,313)
Restructuring and other charges
(567)
(570)
(1,734)
(1,788)
Other Corporate costs & eliminations
(464)
(519)
(2,111)
(2,215)
Total Corporate costs (continuing) (GAAP)
(673)
(1,657)
(5,108)
(6,225)
Less: Non-operating pension cost
(687)
(528)
(2,764)
(2,120)
14
(1,131)
(2,344)
(4,105)
431
(570)
(237)
(1,697)
($417)
($561)
Total Corporate (operating) (Non-GAAP)
Less: restructuring & other, gains
Adjusted Total Corporate (operating) (Non-GAAP)
($2,107) ($2,408)
Note: Individual amounts are rounded. As a result, the sum of the parts presented may not add to the total
(a - includes non-operating pension
15
Non-GAAP reconciliation
Industrial segment gross margins
($ in millions)
4Q'15
4Q'14
$31,352
$31,772
194
1,953
199
-
732
1,953
652
-
Industrial segment sales ex. Alstom (Non-GAAP)
29,205
31,573
106,111
109,075
Less: Industrial segment cost of goods sold
Plus: Alstom cost of goods sold
22,516
1,730
22,829
-
78,802
1,730
80,101
-
8,418
8,745
29,039
28,974
28.8%
27.7%
27.4%
Industrial segment revenue
Less: Industrial segment other income
Less: Alstom sales
Industrial segment gross margin ex. Alstom (NonGAAP)
Industrial segment op profit margin ex. Alstom
(Non-GAAP)
Note: Individual amounts are rounded. As a result, the sum of the parts presented may not add to the total
TY'15
TY'14
$108,796 $109,727
x
26.6%
16
Non-GAAP reconciliation
Industrial segment operating profit margins
($ in millions)
4Q'15
4Q'14
$31,352
$31,772
1,956
-
1,956
-
29,396
31,772
106,840
109,727
Industrial segment op profit-a)
5,522
5,988
17,966
17,764
Less: Alstom segment op profit
(154)
-
(154)
-
5,676
5,988
18,121
17,764
19.3%
18.8%
17.0%
16.2%
Industrial segment revenue-a)
Less: Alstom revenue
Industrial segment revenue ex. Alstom (Non-GAAP)
Industrial segment op profit ex. Alstom (Non-GAAP)
Industrial segment op profit margin ex. Alstom
(Non-GAAP)
TY'15
TY'14
$108,796 $109,727
Note: Individual amounts are rounded. As a result, the sum of the parts presented may not add to the total.
(a- Total Industrial segment revenue and op profit include the sum of our Industrial reporting segments without giving
effect to the elimination of transactions among such segments.
17
Non-GAAP reconciliation
Industrial operating profit margins
($ in millions)
Industrial segment revenue-a)
Plus: Corporate revenue ex. gains
Less: GE-Capital eliminations
Industrial revenue
Less: Alstom revenue
Industrial revenue ex. Alstom (Non-GAAP)
Industrial segment op profit-a)
Plus: Corporate operating earnings
Less: Gains and restructuring
Industrial OP profit (Non-GAAP)
Less: Alstom segment op profit
Industrial op profit ex. Alstom (Non-GAAP)
Industrial op profit margin ex. Alstom (Non-GAAP)
4Q'15
4Q'14
TY'15
TY'14
$31,352
$31,772
(1,043)
(1,279)
(3,709)
(3,954)
(450)
(571)
(1,786)
(2,151)
30,759
31,064
106,874
107,924
1,956
-
1,956
-
28,802
31,064
104,917
107,924
5,522
5,988
17,966
17,764
14
(1,131)
(2,344)
(4,105)
431
(570)
(237)
(1,697)
5,105
5,429
15,858
15,356
(154)
-
(154)
-
5,259
5,429
16,012
15,356
18.3%
17.5%
15.3%
14.2%
$108,796 $109,727
Note: Individual amounts are rounded. As a result, the sum of the parts presented may not add to the total.
(a- Total Industrial segment revenue and op profit include the sum of our Industrial reporting segments without giving
effect to the elimination of transactions among such segments.
18
Non-GAAP reconciliation
Operating earnings & EPS
($ in millions except earnings per share)
Earnings from continuing operations
attributable to common shareholders (GAAP)
Adjustment (net of tax): non-operating
pensions costs/(income)
Operating earnings (Non-GAAP)
4Q'15
4Q'14
$2,567
$3,589 (28)%
447
V%
343
$3,014
$3,932 (23)%
Continuing earnings per share (GAAP)
$0.26
$0.35 (26)%
Adjustment (net of tax): non-operating
pensions costs/(income)
0.05
TY'15
TY'14
$1,663
$9,535
1,797
1,378
$3,460 $10,913
V%
(83)%
(68)%
Earnings per share - diluted-a)
Operating earnings per share (Non-GAAP)
$0.31
0.03
$0.39 (21)%
$0.17
$0.94
0.18
0.14
$0.35
$1.08
(82)%
(68)%
(a - Earnings per share amounts are computed independently. As a result, the sum of per share amounts may not equal the
total
19
Non-GAAP reconciliation
Industrial operating EPS
($ in millions except earnings per share)
4Q'15
4Q'14
Operating earnings (Non-GAAP)
$3,014
$3,932
GE Capital operating earnings (Non-GAAP)
(1,615)
187
Industrial operating earnings (Non-GAAP)
4,629
Operating earnings per share (Non-GAAP)
V%
TY'15
TY'14
V%
(68)%
(23)%
$3,460
$10,913
U
(7,983)
1,209
U
3,745
24%
11,443
9,705
18%
$0.31
$0.39
(21)%
$0.35
$1.08
(68)%
GE Capital operating EPS (Non-GAAP)-a)
(0.16)
0.02
U
(0.80)
0.12
U
Industrial operating EPS (Non-GAAP)-a)
0.47
0.37
27%
1.14
0.96
19%
(a- Earnings per share amounts are calculated as percent of operating earnings. Earnings per share amounts are
computed independently. As a result, the sum of per share amounts may not equal the total.
20
Non-GAAP reconciliation
Industrial operating plus Verticals earnings & EPS
($ in millions except earnings per share)
4Q'15
4Q'14
3,014
3,932
(2,053)
(221)
Industrial operating plus Verticals
earnings (Non-GAAP)
Verticals earnings (Non-GAAP)
Industrial operating earnings (Non-GAAP)
5,067
438
4,629
4,153
408
3,745
Earnings per share – diluted-a)
Operating earnings per share (Non-GAAP)
0.31
0.39
Less: Other GE Capital (Non-GAAP)
(0.21)
(0.02)
Industrial operating plus Verticals
EPS (Non-GAAP)
0.52
0.41
Verticals operating EPS (Non-GAAP)
Industrial operating EPS (Non-GAAP)
0.04
0.47
0.04
0.37
Operating earnings (Non-GAAP)
Less: Other GE Capital (Non-GAAP)
V%
TY’14
V%
3,460
10,913
(68)%
(9,649)
(399)
22%
7%
24%
13,109
1,666
11,443
11,313
1,608
9,705
16%
4%
18%
(21)%
0.35
1.08
(68)%
(0.96)
(0.04)
27%
1.31
1.12
17%
27%
0.17
1.14
0.16
0.96
6%
19%
(23)%
TY’15
(a- Earnings per share amounts are computed independently. As a result, the sum of per share amounts may not equal the total.
21
Non-GAAP reconciliation
GE effective tax rate (ex. GE Capital)
($ in millions)
4Q'15
$2,892
4Q'14
$4,181
($1,465)
$348
($7,672)
$1,532
$18
-
$18
-
Adjusted earnings from continuing ops.
before income taxes (Non-GAAP)
$4,339
$3,833
$10,906
$9,587
GE (ex. GE Capital) provision for income
taxes - continuing ops.
$204
$492
$1,506
$1,634
5%
13%
14%
17%
GE earnings from continuing operations
before income taxes (GAAP)
Less GE Capital earnings from continuing
ops. attributable to the company
Less GE preferred dividend
Effective tax rate GE (ex. GE Capital) (Non-GAAP)
TY’15
TY’14
$3,252 $11,119
22
Non-GAAP reconciliation
Industrial CFOA from continuing operations
($ in millions)
Cash from GE’s operating activities
as reported (GAAP)
Less: GE Capital dividends
Cash from GE's operating activities
excluding dividends from GE Capital
(Industrial CFOA) (Non-GAAP)
Less: Alstom CFOA & Signaling deal taxes
Industrial CFOA ex. Alstom (Non-GAAP)
4Q'15
4Q'14
V%
$9,828
$7,996
23%
3,850
779
$5,978
$7,217
(498)
-
$6,476
$7,217
TY’15
8%
3,000
$12,054 $12,171
(498)
(10)%
V%
$16,354 $15,171
4,300
(17)%
TY’14
(1)%
-
$12,551 $12,171
3%
Note: Individual amounts are rounded. As a result, the sum of the parts presented may not add to the total
23
Free cash flow
Non-GAAP reconciliation
($ in millions)
TY’15
Cash from GE's operating activities as reported (GAAP)
TY’14
V%
$16,354
$15,171
3,785
939
3,970
615
Free cash flow (Non-GAAP)
$13,507
$11,815
Less: GE Capital dividends
4,300
3,000
$9,207
$8,815
(498)
(77)
-
Adjusted Industrial free cash flow (Non-GAAP)
$9,782
$8,815
Industrial operating earnings (Non-GAAP)
11,443
9,705
85%
91%
Less: Additions to property, plant and equipment
Plus: Dispositions of property, plant and equipment
Industrial free cash flow (Non-GAAP)
Less: Alstom CFOA and Signaling deal taxes
Less: Alstom additions to PP&E, net of dispositions
Adjusted Industrial FCF conversion (Non-GAAP)
8%
14%
4%
11%
Note: Individual amounts are rounded. As a result, the sum of the parts presented may not add to the total
24
Non-GAAP reconciliation
GAAP & Industrial Operating plus Verticals EPS
4Q’15
4Q’14
2015
Industrial
Industrial
Capital
Industrial
Capital
2014
Industrial
Capital
Capital
1.14
.96
.47
.37
.04
(.05)
(.21)
(.18)
.04
(.03)
Earnings per share -a)
(.02)
.17
(.14)
.16
(.04)
(.96)
4Q’15 4Q’14
Earnings per share -a)
2015
2014
Industrial Operating plus Verticals $.52
$.41
Industrial Operating plus Verticals $1.31 $1.12
Non-operating & other GE Capital
(.25)
(.06)
Non-operating & other GE Capital (1.14)
(.18)
GAAP continuing EPS
$.26
$.35
GAAP continuing EPS
$.94
$.17
Industrial Operating & Verticals
Non-operating pension & other GE Capital
(a- Earnings per share amounts are computed independently. As a result, the sum of per share amounts may not equal the total.
25
GE Capital segment results
($ in millions – net earnings)
4Q’15
4Q’14
V%
CLL
$145
$113
28%
EFS
(19)
112
U
GECAS
354
217
63
(1,927)
(94)
U
$(1,447)
$348
U
(169)
(161)
(5)
$(1,615)
$187
U
3,722
1,564
F
$2,107
$1,751
20%
GE Capital Corporate
Earnings from continuing ops.
Preferred stock dividends
Capital segment profit
Earnings from discontinued ops.
Total GE Capital net earnings
Note: Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in millions.
26
Capital – Verticals results
($ in millions – net earnings)
4Q’15
GECAS
4Q’14
V%
$354
$217
63%
EFS
(19)
112
U
Other-a)
127
137
(7)
Allocated corporate costs-b)
(25)
(58)
57
$438
$408
7%
(2,053)
(221)
U
$(1,615)
$187
U
Verticals
Other continuing operations
Capital segment profit
(a- Includes Industrial Finance & run-off Insurance
(b- Revised estimate for allocated corporate costs
Note: Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in millions.
27
GE Capital segment assets
($ in billions)
4Q’15
4Q’14
CLL
$23.6
$21.7
9%
EFS
13.2
15.5
(14)
GECAS
46.7
42.6
9
112.3
99.9
12
$195.7
$179.7
9%
120.9
323.5
(63)
$316.7
$503.2
(37)%
GE Capital Corporate
Capital segment assets
Assets of discontinued operations
Total GE Capital assets
V%
Note: Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in millions.
28
GE Capital nonaccrual/net charge-offs -a)
($ in millions)
Nonaccrual assets/nonaccrual % fin. rec.
CLL
GECAS
EFS
Corporate/HQ
GE Capital
Total net charge-offs/net charge-offs % fin. rec.
4Q’15
3Q’15
4Q’14
$25
$27
$25
0.17%
0.20%
179
195
419
2.45
2.64
5.07
53
82
68
2.15
3.36
2.64
-
-
-
-
-
-
$256
1.02%
$304
1.28%
4Q’15
CLL
0.17%
$512
1.99%
$8
0.23%
GECAS
EFS
Corporate/HQ
GE Capital
3Q’15
4Q’14
$2
0.06%
$2
0.06%
(4)
(2)
(1)
(0.22)
(0.11)
(0.05)
9
8
(4)
1.47
1.22
(0.60)
(1)
-
-
(0.80)
-
-
$12
0.20%
$8
0.14%
$(3)
(0.05)%
(a - Real Estate, the majority of CLL, and Consumer have been classified as discontinued operations. As a result, prior periods have been recasted accordingly.
Note: Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in millions.
29
GE Capital funding
($ in billions)
Debt composition –a)
Non-recourse
Securitization
Unsecured term issuances
$32
$246
4
$199
3
$181-c)
178
169
5
13
4
5
3
$10
$8
'14
'15
203
LT debt -b)
Alternative
funding/other
Comm’l. paper
14
25
4Q'14
Bank lines
Liquidity -e)
LT debt <1yr.
$44
$76
$37
3Q'15
4Q'15
$45
$97
$30
$46-d)
$91
$43
'13
• Completed $8B of LT debt issuance in 1Q’15 in
3 currencies
• No incremental LT debt issuance in line with
April 10th announcement
• Met $5B CP target by Dec’15
• Strong liquidity position
(a - Continuing operations (excludes obligations issued to third parties that we reported in Discontinued operations or Held-for-Sale)
(b – Includes $85B of GE Capital debt assumed by GE Company and maintained as intercompany debt as of 4Q’15
(c - Includes ~$(8.9)B YTD FX impact and ~$(1.0)B YTD FAS 133
(d - Bank lines maintained at GE Company as of Dec ‘15 but can be drawn and lent to GE Capital upon request
(e - Liquidity includes cash & equivalents (including discontinued operations and held for sale balances); 4Q15 includes $10.4B of high quality
interest bearing deposits
30
Non-GAAP reconciliation
-a)
GE Capital leverage ratio
($ in billions)
As reported
Debt
Equity-b)
Leverage ratio (GAAP)
Debt
Less: Liquidity-c)
Adjusted debt
Equity-b)
Adjusted leverage ratio (Non-GAAP)
4Q’15
3Q’15
4Q’14
$211.9
46.2
$299.5
68.2
$351.9
87.5
4.6
4.4
4.0
211.9
(90.9)
$121.0
299.5
(97.0)
$202.5
351.9
(76.4)
$275.5
46.2
68.2
87.5
2.6
3.0
3.1
(a - Includes discontinued operations and balances recorded as held for sale for all periods
(b - Total equity ex-non-controlling interests
(c - Liquidity includes cash & equivalents (including discontinued operations and held for sale balances) and $10.4B of high quality interest bearing deposits
31
Non-GAAP reconciliation
GE Capital tier 1 common ratio estimate-a)
($ in billions)
4Q’15
3Q’15
4Q’14
$46.2
$68.2
$87.5
(5.0)
(5.2)
0.3
(4.9)
(15.5)
1.1
(4.9)
(25.6)
1.0
36.4
48.9
58.0
Estimated risk weighted assets
251.1
356.7
445.9
Tier 1 common ratio (Non-GAAP)
14.5%
13.7%
13.0%
Tangible Common Equity/Tangible
Assets (Non-GAAP)
11.5%
11.2%
11.9%
As reported
Shareowners' equity–b) (GAAP)
- Preferred equity
- G/W & Intangibles
- Other additions/(deductions)
Tier 1 common
(a - Based on Basel 3 standardized approach on a transitional basis; includes discontinued operations for all periods
(b - Total equity ex-non-controlling interests
32
Non-GAAP reconciliation
Capital ending net investment
($ in billions)
4Q’15
3Q’15-a) 2Q’15-a) 1Q’15-a) 4Q’14-a)
GE Capital total assets (GAAP)
$316.7
$433.8
$463.3
$476.5
$500.2
Less: assets of discontinued operations-b)
(120.9)
(121.9)
(154.9)
(31.3)
(1.2)
Less: non-interest bearing
liabilities & others
(43.3)
(50.3)
(51.2)
(66.0)
(60.5)
Capital ENI (Continuing operations)
152.4
261.6
257.2
379.2
438.5
Less: Liquidity-c)
(70.5)
(85.5)
(77.9)
(76.4)
(75.5)
Continuing ENI (ex-Liquidity) (Non-GAAP)
$81.9
$ 176.1
$179.3
$302.8
$363.0
Memo:
Total ENI (ex-Liquidity) incl. disc ops (Non-GAAP) $166.9
$270.6
$309.0
$331.4
$362.9
(a - As originally reported
(b – Real Estate, majority of Commercial Lending & Leasing, and Consumer segments moved to discontinued operations during 1Q’15, 2Q’15, and 4Q’15 respectively
(c - Liquidity includes cash & equivalents from continuing operations (excluding held for sale balances) and $10.4B of high quality interest bearing deposits
33
GE Capital reserves–a)
($ in billions)
Allowances
for losses
Commercial
Coverage:
Reserves
Nonaccrual
0.1
0.1
0.1
4Q'14
3Q'15
4Q'15
0.36%
18.16%
0.36%
27.96%
0.32%
31.64%
(a - Real Estate, the majority of CLL, and Consumer have been classified as discontinued operations. As a result, prior periods have been recasted accordingly
34
Non-GAAP supplemental information
In an effort to provide investors with additional information regarding the company’s results as determined by
generally accepted accounting principles (GAAP), the company also discusses, in its earnings press release and earnings
presentation materials, the following Non-GAAP information which management believes provides useful information to
investors.
Operating and non-operating pension costs
We have provided the operating and non-operating components of cost for our principal pension plans. Operating pension
costs comprise the service cost of benefits earned, prior service cost amortization and curtailment loss for our principal
pension plans. Non-operating pension costs comprise the expected return on plan assets, interest cost on benefit obligations
and net actuarial loss amortization for our principal pension plans. We believe that the operating components of pension
costs better reflects the ongoing service-related costs of providing pension benefits to our employees. We believe that the
operating and non-operating components of cost for our principal pension plans, considered along with the corresponding
GAAP measure, provide management and investors with additional information for comparison of our pension plan costs and
operating results with the pension plan costs and operating results of other companies.
Adjusted corporate costs (operating)
Operating corporate costs exclude non-service-related pension costs of our principal pension plans, which comprise interest
costs, expected return on plan assets and amortization of actuarial gains/losses. Service cost, prior service cost and
curtailment loss components of our principal pension plans are included in operating corporate costs. We believe that these
components of pension cost better reflect the ongoing service-related costs of providing pension benefits to our employees.
Accordingly, we believe that our measure of operating corporate costs provides management and investors with a useful
measure of the operational costs incurred outside of our businesses. We believe that this measure, considered along with the
corresponding GAAP measure, provides management and investors with additional information for comparison of our
operating corporate costs to the operating corporate costs of other companies.
We also believe that adjusting operating corporate costs to exclude the effects of items that are not closely associated with
ongoing corporate operations, such as earnings of previously divested businesses, gains and losses on disposed and held for
sale businesses, and restructuring and other charges, provides management and investors with a meaningful measure that
increases the period-to-period comparability of our ongoing corporate costs.
35
Non-GAAP supplemental information
Industrial Segment Organic Revenue Growth
Organic revenue growth measures revenue excluding the effects of acquisitions, business dispositions and currency exchange
rates. We believe that this measure provides management and investors with a more complete understanding of underlying
operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and
currency exchange, which activities are subject to volatility and can obscure underlying trends. We also believe that
presenting organic revenue growth separately for our industrial businesses provides management and investors with useful
information about the trends of our industrial businesses and enables a more direct comparison to other non-financial
businesses and companies. Management recognizes that the term "organic revenue growth" may be interpreted differently
by other companies and under different circumstances. Although this may have an effect on comparability of absolute
percentage growth from company to company, we believe that these measures are useful in assessing trends of the
respective businesses or companies and may therefore be a useful tool in assessing period-to-period performance trends.
Industrial Segment Organic Operating Profit Growth
Operating profit growth measures profit excluding the effects of acquisitions, business dispositions and currency exchange
rates. We believe that this measure provides management and investors with a more complete understanding of underlying
operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and
currency exchange, which activities are subject to volatility and can obscure underlying trends. Management recognizes that
the term “organic operating profit growth” may be interpreted differently by other companies and under different
circumstances. Although this may have an effect on comparability of absolute percentage growth from company to company,
we believe that these measures are useful in assessing trends of the respective businesses or companies and may therefore
be a useful tool in assessing period-to-period performance trends.
36
Non-GAAP supplemental information
Industrial Cash Flows from Operating Activities (Industrial CFOA)
We define “Industrial CFOA” as GE’s cash from operating activities (continuing operations) less the amount of dividends
received by GE from GE Capital. This includes the effects of intercompany transactions, including GE customer receivables sold
to GE Capital; GE Capital services for trade receivables management and material procurement; buildings and equipment
leased by GE from GE Capital; information technology (IT) and other services sold to GE Capital by GE; aircraft engines
manufactured by GE that are installed on aircraft purchased by GE Capital from third-party producers for lease to others; and
various investments, loans and allocations of GE corporate overhead costs. We believe that investors may find it useful to
compare GE’s operating cash flows without the effect of GE Capital dividends, since these dividends are not representative of
the operating cash flows of our industrial businesses and can vary from period to period based upon the results of the
financial services businesses. Management recognizes that this measure may not be comparable to cash flow results of
companies which contain both industrial and financial services businesses, but believes that this comparison is aided by the
provision of additional information about the amounts of dividends paid by our financial services business and the separate
presentation in our financial statements of the GE Capital cash flows. We believe that our measure of Industrial CFOA provides
management and investors with a useful measure to compare the capacity of our industrial operations to generate operating
cash flow with the operating cash flow of other non-financial businesses and companies and as such provides a useful
measure to supplement the reported GAAP CFOA measure.
Free cash flow
We define free cash flow as GE’s cash from operating activities (continuing operations) less GE additions to property, plant and
equipment, which are included in cash flows from investing activities. We believe that free cash flow is a useful financial
metric to assess our ability to pursue opportunities to enhance our growth. We also believe that presenting free cash flow
separately for our industrial businesses provides management and investors with useful information about the trends of our
industrial businesses and enables a more direct comparison to other non-financial businesses and companies. Management
recognizes that the term free cash flow may be interpreted differently by other companies and under different circumstances.
Although this may have an effect on comparability of absolute percentage growth from company to company, we believe that
these measures are useful in assessing trends of the respective businesses or companies and may therefore be a useful tool in
assessing period-to-period performance trends.
37
Non-GAAP supplemental information
Industrial operating earnings and EPS and GE Capital operating earnings (loss) and EPS
Operating earnings (loss) excludes non-service related pension costs of our principal pension plans comprising interest cost,
expected return on plan assets and amortization of actuarial gains/losses. The service cost, prior service cost and curtailment
loss components of our principal pension plans are included in operating earnings. We believe that these components of
pension cost better reflect the ongoing service-related costs of providing pension benefits to our employees. As such, we
believe that our measure of operating earnings (loss) provides management and investors with a useful measure of the
operational results of our business. Other components of GAAP pension cost are mainly driven by capital allocation decisions
and market performance, and we manage these separately from the operational performance of our businesses. Neither
GAAP nor operating pension costs are necessarily indicative of the current or future cash flow requirements related to our
pension plan. We also believe that this measure, considered along with the corresponding GAAP measure, provides
management and investors with additional information for comparison of our operating results to the operating results of
other companies.
We believe that presenting operating earnings and operating EPS separately for our industrial and financial services
businesses also provides management and investors with useful information about the relative size of our industrial and
financial services businesses in relation to the total company.
GE Industrial Operating + Verticals EPS
As described above, Verticals represents the GE Capital businesses that we expect to retain. We believe that presenting
Industrial operating + Vertical earnings-per-share amounts provides management and investors with a useful measure to
evaluate the performance of the businesses we expect to retain after the disposition of most of our financial services business.
38
Non-GAAP supplemental information
GE Capital Ending Net Investment (ENI), excluding liquidity
We use ENI to measure the size of our Capital segment. We believe that this measure is a useful indicator of the capital (debt
or equity) required to fund a business as it adjusts for non-interest bearing current liabilities generated in the normal course of
business that do not require a capital outlay. We also believe that by excluding liquidity, we provide a meaningful measure of
assets requiring capital to fund our Capital segment as a substantial amount of liquidity resulted from debt issuances to prefund future debt maturities and will not be used to fund additional assets. Liquidity consists of cash and equivalents and
certain high quality interest bearing deposits of the U.S. Treasury. As a general matter, investments included in liquidity are
expected to be highly liquid, giving us the ability to readily convert them to cash. Providing this measure will help investors
measure how we are performing against our previously communicated goal to reduce the size of our financial services
segment.
GE Capital Tier 1 Common Ratio Estimate
The GE Capital Tier 1 common ratio estimate is the ratio of Tier 1 common equity to total risk-weighted assets as calculated
based on our interpretation of the standardized U.S. Basel 3 capital rules on a transitional basis, which is subject to review
and consultation with our regulators. As such, the methodology of calculating this ratio may be refined over time as we
discuss its interpretation and application with our regulators. As of December 31, 2015, we are not required by our regulators
to disclose this capital ratio, and therefore this capital ratio is considered a non-GAAP financial measure. We believe that this
estimated capital ratio is a useful measure to investors because it is widely used by analysts and regulators to assess the
capital position of financial services companies.
39