Hi,

For the course Financial Statement Analysis, I had to do an analysis of General electric. One of the questions was to make reformulated balance sheet, cash flow statement, income statement and equity statement. In the attachment you can find what i have done, but i would like to know whether it is correct. All the information necessary is in the document. I hope to receive an answer. Regards, Gerard

Document and Entity Information (USD $) 12 Months Ended In Billions, except Share data, unless otherwise specified Document and Entity Information [Abstract] Dec. 31, 2014 Document Type Document Period End Date Amendment Flag Entity Registrant Name Trading Symbol Entity Central Index Key Current Fiscal Year End Date Entity Filer Category Entity Common Stock, Shares Outstanding 10-K Document Fiscal Period Focus Document Fiscal Year Focus Entity Public Float Entity Well-known Seasoned Issuer Entity Current Reporting Status Entity Voluntary Filers Q4 31-Dec-14 0 General Electric Company GE 40545 -19 Large Accelerated Filer 10,064,909,484 2014 $261.10 Yes Yes No Statement of Financial Position (USD $) In Millions, unless otherwise specified Dec. 31, 2014 Dec. 31, 2013 Dec. 31, 2012 Reformulated Statement of Financial Position (USD $) Dec. 31, 2011 In Millions, unless otherwise specified Dec. 31, 2014 Dec. 31, 2013 Dec. 31, 2012 Dec. 31, 2011 $23,237.00 $21,388.00 $19,902.00 $20,478.00 Assets Current assets Cash and equivalents 90,208 88,555 77,268 84,501 Inventories $17,689.00 $17,325.00 $15,374.00 $13,792.00 Investment securities (Note 3) 47,907 43,981 48,510 47,374 Property, Pland and Equipment $66,387.00 $68,827.00 $68,633.00 $65,739.00 Current receivables (Note 4) 23,237 21,388 19,902 20,478 Net Financing receivables $224,816.00 $241,940.00 $257,238.00 $279,918.00 Inventories (Note 5) 17,689 17,325 15,374 13,792 Other GECC Receivables $9,095.00 $9,114.00 $7,864.00 $7,561.00 Financing receivables - net (Note 6 and 27) 224,816 241,940 257,238 279,918 Cash held for operating activities $1,067.58 $1,005.42 $1,001.49 $945.22 9,095 9,114 7,864 7,561 $0.00 $0.00 $0.00 $0.00 412,952 422,303 426,156 453,624 Goodwill $76,553.00 $77,648.00 $73,114.00 $72,625.00 Other Intangible Assets -net $14,156.00 $14,310.00 $11,980.00 $12,068.00 Deferred Income Taxes $2,541.00 $275.00 -$54.00 $131.00 Other assets (excluding derivatives) $65,648.00 $69,068.00 $99,456.00 $101,660.00 Other GECC receivables Total current assets Operating Assets Current Receivables Investment in GECC Non-current assets Property, plant and equipment - net (Note 7) 66,387 68,827 68,633 65,739 0 0 0 0 Goodwill (Note 8) 76,553 77,648 73,114 72,625 Assets of business held for sale $6,300.00 $50.00 $211.00 $711.00 Other intangible assets - net (Note 8) 14,156 14,310 11,980 12068 Assets of Discontinued operations $1,235.00 $2,339.00 $3,315.00 $1,721.00 All other assets (Note 9) 68,225 70,808 101,644 111701 Deferred income taxes 2,541 275 -54 131 Assets of businesses held for sale (Note 2) 6,300 50 211 711 Assets of discontinued operations (Note 2) 1,235 2,339 3,315 1721 235,397 234,257 258,843 264,696 Total assets(a) 648,349 656,560 684,999 718,320 Liabilities and equity Short-term borrowings (Note 10) 71,789 77,890 101,392 137611 Accounts payable, principally trade accounts 16,338 16,471 15,654 16400 Total Operating Liabilities $202,458.00 $183,939.00 $184,060.00 $186,087.00 Progress collections and price adjustments accrued 12,537 13,125 10,877 11349 Net Operating Assets (NOA) $306,266.58 $339,350.42 $373,974.49 $391,262.22 Dividends payable 2,317 2,220 1,980 1797 Other GE current liabilities 12,682 13,381 14,895 14796 Non-recourse borrowings of consolidated securitization entities (Note 10) Bank deposits (Note 10) 29,938 30,124 30,123 29258 Cash Equivalents $89,140.42 $87,549.58 $76,266.51 $83,555.78 62,839 53,361 46,200 43115 Investment securities $47,907.00 $43,981.00 $48,510.00 $47,374.00 Long-term borrowings (Note 10) 200,414 221,665 236,084 243459 Other assets $2,577.00 $1,740.00 $2,188.00 $10,041.00 Investment contracts, insurance liabilities and insurance annuity benefits (Note 11) All other liabilities (Note 13) 27,578 26,544 28,268 29774 70,484 61,057 68,166 70653 Liabilities of businesses held for sale (Note 2) 3,375 6 157 345 Liabilities of discontinued operations (Note 2) 1,225 3,933 2,733 1629 511,516 519,777 556,529 600186 0 0 0 0 702 702 702 702 Investment in GECC Total non-current assets Total liabilities(a) GECC preferred stock (50,000 shares outstanding at both year-end 2014 and 2013) Common stock (10,057,380,000 and 10,060,881,000 shares outstanding at year-end 2014 and 2013, Accumulated other comprehensive income (loss) respectively) attributable to GE(b) Investment securities 677 -2,427 126 412 -180 -257 -722 Benefit plans -16,578 -9,296 -20,597 Other capital 32,889 32,494 33,070 Retained earnings 155,333 149,051 144,055 Treasury Stock, Value -42,593 -42,561 -34,571 $11,349.00 $13,381.00 $53,361.00 $26,544.00 $61,057.00 $14,895.00 $46,200.00 $28,268.00 $68,166.00 $14,796.00 $43,115.00 $29,774.00 $70,653.00 $139,624.42 $133,270.58 $126,964.51 $140,970.78 $71,789.00 $77,890.00 $101,392.00 $137,611.00 $2,317.00 $2,220.00 $1,980.00 $1,797.00 $30,124.00 $30,123.00 $29,258.00 $221,665.00 $236,084.00 $243,459.00 Non-recourse borrowings of consolidated securitization entiti $29,938.00 $200,414.00 Long-term borrowings Total GE shareowners' equity Noncontrolling interests(c) Total equity (Note 15 and 16) Total liabilities and equity 128,159 8,674 136,833 648,349 130,566 6,217 136,783 656,560 123,026 5,444 128,470 684,999 116438 1696 118134 718320 tot liabilities tot eq 511,516 136,833 519,777 136,783 556,529 128,470 600,186 118,134 (a) Our consolidated assets at December 31, 2014 included total assets of $50,453 million of certain variable interest entities (VIEs) that can (b) The used to settle the liabilities only be sum of accumulated other of those comprehensive income (loss) (AOCI) VIEs. These AOCI attributable to (c) Included assets included net financing receivables of $43,620 million andmillion and noncontrolling interests of $(194) investment securities of $3,374 million. Our consolidated (a)Represents the adding together of all liabilities companies except2014 included affiliated at December 31, General Electric liabilities of certain VIEs for which the VIE creditors do not have recourse to GE. These liabilities included non-recourse borrowings of consolidated securitization entities (CSEs) of $28,664 million. See Note 23. Dec. 31, 2011 50,000 50,000 40 0 10,057,380,000 10,060,881,000 10,405,625,000 10,573,017,000 $3,375.00 $6.00 $157.00 $345.00 Liabilities of discountinued operations -31769 Preferred Stock, Shares Outstanding Common Stock, Shares, Outstanding $10,877.00 Short-term borrowings Dividends payable 137786 Dec. 31, 2012 $13,125.00 Financing Liabilities 33693 Dec. 31, 2013 $16,400.00 Total Financing Assets -22901 Dec. 31, 2014 $15,654.00 Financing Assets -1176 Statement of Financial Position (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified Balance Sheet Related Disclosures [Abstract] $16,471.00 $12,537.00 Progress collections and price adjustments accrued $12,682.00 Other GE current liabilities $62,839.00 Bank Deposits Investment Contracts, insurance liabilities and insurance annu $27,578.00 $70,484.00 All other Liabilities 133 [2] [3] [4] $577,349.22 $16,338.00 Accounts payable, principally trade accounts -30 [1] $558,034.49 Liabilities of business held for sale 307 Cash flow hedges $523,289.42 Operating Liabilities ' 1,013 Currency translation adjustments $508,724.58 Total Operating Assets $1,225.00 $3,933.00 $2,733.00 $1,629.00 Total Financing Liabilities 30,000 ### $335,838.00 $372,469.00 $414,099.00 Shareholder's Equity Dec. 31, 2010 $309,058.00 $136,833.00 $136,783.00 $128,470.00 $118,134.00 Assets of consolidated variable interest entities that can only be used to settle the liabilities of those VIEs $50,453 $47,367 $ 46,064 $ 45,514 Net financing receivables of certain VIEs that can only be used to settle the liabilities of those VIEs 43,620 41,420 40.287 37,120 Investment securities of certain VIEs that can only be used to settle the liabilities of those VIEs 3,374 3,830 3.419 5,320 Nonrecourse Borrowings Of Consolidated Securitization Entities Where VIE Creditors Do Not Have Recourse To Company 28,664 28,574 29.123 28,758 -18,172 -9,120 -20.23 -23,974 -17,855 ($194) ($180) $ (155) $ (168) $ (153) Sum of accumulated other comprehensive income - net Accumulated other comprehensive income - net attributable to noncontrolling interests Notes Assumption: 1% of total sales taken from Income Statement Assumption: derivatives excluded from other assets. These were included in the financial assets. Reformulated Statement of Financial Position (USD $) In Millions, unless otherwise specified Financial statements 2014 Statement of Earnings (USD $) In Millions, except Per Share data, unless otherwise specified Revenues and other income Sales of goods Sales of services Other income (Note 17) GECC earnings from continuing operations GECC revenues from services (Note 18) Total revenues and other income 12 Months Ended Dec. 31, 2014 Dec. 31, 2013 Cost of services sold Interest and other financial charges Investment contracts, insurance losses and insurance annuity benefits Provision for losses on financing receivables (Note 6) Other costs and expenses Total costs and expenses Earnings from continuing operations before income taxes Benefit (provision) for income taxes (Note 14) (TAX) Earnings from continuing operations Earnings (loss) from discontinued operations, net of taxes (Note 2) Net earnings Less net earnings (loss) attributable to noncontrolling interests Net earnings attributable to the Company Preferred stock dividends declared Net earnings attributable to GE common shareowners 28,669 27,158 27,648 Investment contracts, insurance losses and insurance annuity benefits $ 2,548.00 $ 2,676.00 778 3,108 2,563 5,063 Provisions for losses on financing receivables $ 3,993.00 $ 4,818.00 0 0 0 0 Other costs and expenses $ 34,026.00 $ 35,143.00 41,053 42,395 43,972 46,957 Operating Income from Sales (before tax) $ 25,933.00 $ 23,159.00 148,589 146,045 146,684 146,542 Tax benefits (provision) for income taxes $ -1,772.00 $ -676.00 ' Operating Income from Sales (after tax) $ 24,161.00 $ 22,483.00 61,257 57,867 56,785 51,455 Other Operating Income (before tax items) 20,054 19,274 17,525 16,823 Other Income $ 778.00 $ 3,108.00 9,482 10,116 12,407 14,422 Earnings (loss) from discontinued operations $ -337.00 $ -2,521.00 2,548 2,676 2,857 2,912 Tax benefits (provision) from discontinued operations $ 225.00 $ 401.00 3,993 4,818 3,832 3,930 $ 666.00 $ 988.00 34,026 35,143 35,897 36,841 Currency translation adjustments $ -2,729.00 $ -308.00 131,360 129,894 129,303 126,383 Cash flow hedges $ 234.00 $ 467.00 17,229 16,151 17,381 20,159 $ 22,332.00 $ 23,630.00 -1,772 -676 -2,534 -5,745 15,457 15,475 14,847 14,414 -112 -2,120 -983 29 Interest and other financial charges $ -9,482.00 $ -10,116.00 15,345 13,355 13,864 14,443 Preferred stock dividends declared $ - 112 298 223 292 Investment securities $ 708.00 $ -374.00 15,233 13,057 13,641 14,151 Benefit Plans $ -7,279.00 $ 11,300.00 0 0 0 -1,031 Less Comprehensive Income (loss) attributable to noncontrolling interest $ 98.00 $ 273.00 15,233 13,057 13,641 13,120 Net Financing Income (Expense) $ -16,151.00 $ 537.00 Comprehensive Income $ 6,181.00 $ 24,167.00 Other Operating Income (after tax items) Operating Income (after tax) Finance Income (Expense) 292 15,345 15,177 14,624 14,122 0 0 0 0 15,345 15,177 14,624 14,122 -112 -2,120 -983 29 15,233 13,057 13,641 14,151 Diluted earnings per share Basic earnings per share Net earnings Diluted earnings per share Basic earnings per share $1.51 $1.53 $1.47 $1.48 $1.38 $1.39 $1.50 $1.27 $1.29 $1.23 $1.23 ' $1.23 $1.51 $1.28 $1.29 $1.24 Dividends declared per common share $0.89 $0.79 $0.70 $0.61 Dec. 31, 2012 Dec. 31, 2011 Earnings from continuing operations GE Consolidated Statement of Comprehensive Income (USD $) 12 Months Ended Dec. 31, 2014 Dec. 31, 2013 $15,345 $13,355 $13,864 $14,443 112 298 223 292 15,233 13,057 13,641 14,151 Other comprehensive income (loss) Investment securities Currency translation adjustments Cash flow hedges ' 708 -374 705 608 -2,729 -308 300 180 234 467 453 118 Benefit plans -7,279 11,300 2,299 -7,040 Other comprehensive income (loss) -9,066 11,085 3,757 -6,134 -14 -25 13 -15 Less Other comprehensive income (loss) attributable to noncontrolling interests $ - ' 223 Net earnings attributable to GE common shareowners for per-share calculation, Basic 65,796.00 30,190 298 Less net earnings (loss) attributable to noncontrolling interests 66,500.00 $ Operating Expenses 112 Net earnings $ $66,874 14,414 In Millions, unless otherwise specified Statement of Comprehensive Income [Abstract] 77,141.00 $72,991 14,847 Net earnings attributable to GE common shareowners 81,311.00 $ $71,873 15,475 Earnings from continuing operations attributable to GE common shareowners Earnings (loss) from discontinued operations, net of taxes $ $76,568 15,457 Less net earnings (loss) attributable to noncontrolling interests Earnings from continuing operations attributable to the Company GECC preferred stock dividends declared 142,937.00 Gross Margin ' Amounts attributable to GE common shareowners Earnings from continuing operations 147,811.00 $ Cost of Sales Dec. 31, 2011 Costs and expenses (Note 19) Cost of goods sold Dec. 31, 2013 $ Operating Revenue Dec. 31, 2012 Dec. 31, 2014 Other comprehensive income attributable to GE Comprehensive income Less Comprehensive income (loss) attributable to noncontrolling interests Comprehensive income attributable to Company -9,052 11,110 3,744 -6,119 6,279 24,440 17,621 8,309 98 273 236 277 $6,181 $24,167 $17,385 $8,032 Dec. 31, 2012 Dec. 31, 2011 Notes $ 144,121.00 $ $ 74,310.00 $ 68,278.00 $ 69,811.00 $ 73,201.00 $ 2,857.00 $ 2,912.00 $ 3,832.00 $ 3,930.00 $ 35,897.00 $ 36,841.00 Assumption: provision for an operating asset, therefore it is an operating expense. $ 27,225.00 $ 29,518.00 $ -2,534.00 $ -5,745.00 $ 24,691.00 $ 23,773.00 $ 2,563.00 $ 5,063.00 $ -1,378.00 $ -422.00 $ 395.00 $ 451.00 $ 1,580.00 $ 5,092.00 $ 300.00 $ 180.00 $ 453.00 $ 118.00 $ 27,024.00 $ $ -12,407.00 $ $ 141,479.00 Assumption: Revenues of GECC also belong to total operating revenue 29,163.00 *Assumption: tax benefits following note 2 -14,422.00 $ - - $ 705.00 $ 608.00 $ 2,299.00 $ -7,040.00 $ 236.00 $ 277.00 $ -9,639.00 $ -21,131.00 $ 17,385.00 $ 8,032.00 Consolidated Statement of Changes in Shareowners' Equity (USD $) In Millions, unless otherwise specified Statement Of Stockholders Equity [Abstract] Dec. 31, 2014 12 Months Ended Dec. 31, 2013 Dec. 31, 2012 Dec. 31, 2011 Reformulated Statement of Financial Position (USD $) In Millions, unless otherwise specified Beginning Balance GE shareowners' equity opening balance $130,566 $118,936 13,057 13,641 14,151 -8,951 -8,061 -7,372 -7,502 We assume this that includes total divide Net Sales (purchases) of shares for treasury -9,052 11,110 3,744 -6,119 -32 395 128,159 -7,990 -576 130,566 -2,802 -623 123,026 169 -3,197 116,438 8,674 [1] $136,833 Other comprehensive income attributable to GE $116,438 15,233 Net earnings attributable to GE common shareowners for per-share calculation, Basic Dividends and other transactions with shareowners $123,026 6,217 [1] $136,783 5,444 [1] $128,470 Dec. 31, 2014 Dec. 31, 2013 Dec. 31, 2012 $156,208 $132,112 $119,297 0 0 0 32 7990 2802 -8,951 -8,061 -7,372 -8919 6,181 $153,470 -71 24,167 $156,208 -4570 17,385 $132,112 Capital Contributions Preferred Stock Dividends and other transactions with shareowners Net sales (purchases) of shares for treasury Changes in other capital GE shareowners' equity Ending balance Noncontrolling interests Total equity balance at December 31 [1] (c) Included AOCI attributable to noncontrolling interests of $(194) million and $(180) million at December 31, 2014 and 2013, respectively. $128,159 Noncontrolling interest= a stake in the company 1,696 $118,134 Total Capital Contributions Comprehensive Income Ending Balance Dec. 31, 2011 Notes $118,936 GECC preferred stock (50,000 shares outstanding at both year-end 2014 and 2013) 0 -169 -7,502 -7671 8,032 $119,297 Treasury stocks are subtracted from issued shares Statement of Cash Flows (USD $) In Millions, unless otherwise specified Cash flows - operating activities Net earnings Less net earnings (loss) attributable to noncontrolling interests Net earnings attributable to GE common shareowners for per-share calculation, Basic Earnings (loss) from discontinued operations, net of taxes Adjustments to reconcile net earnings attributable to the Company to cash provided from operating activities Depreciation and amortization of property, plant and equipment Earnings from continuing operations retained by GECC(b) Deferred income taxes Decrease (increase) in GE current receivables Increase (Decrease) in Inventories Increase (decrease) in accounts payable Increase (decrease) in GE progress collections Provision for losses on GECC financing receivables All other operating activities Cash from (used for) operating activities - continuing operations Cash from (used for) operating activities - discontinued operations Cash from (used for) operating activities Cash flows - investing activities Additions to property, plant and equipment Dispositions of property, plant and equipment Net decrease (increase) in GECC financing receivables Proceeds from sales of discontinued operations Proceeds from principal business dispositions Proceeds from sale of equity interest in NBCU LLC Net cash from (payments for) principal businesses purchased Payments for proceeds from other investing activities Cash from (used for) investing activities - continuing operations Cash from (used for) investing activities - discontinued operations Cash from (used for) investing activities Cash flows - financing activities Net increase (decrease) in borrowings (maturities of 90 days or less) Net increase (decrease) in bank deposits Newly issued debt (maturities longer than 90 days) Repayments and other reductions (maturities longer than 90 days) Proceeds from issuance of preferred stock Repayment of preferred stock Net dispositions (purchases) of GE shares for treasury Dividends paid to shareowners Proceeds from initial public offering of Synchrony Financial All other financing activities Cash from (used for) financing activities - continuing operations Cash from (used for) financing activities - discontinued operations Cash from (used for) financing activities Effect of currency exchange rate changes on cash and equivalents Increase (decrease) in cash and equivalents Cash and equivalents at beginning of year Cash and equivalents at end of year Less cash and equivalents of discontinued operations at December 31 Cash and equivalents of continuing operations at end of year Cash paid during the year for interest Cash recovered (paid) during the year for income taxes Dec. 31, 2014 $15,345 112 15,233 -112 12 Months Ended Dec. 31, 2013 Dec. 31, 2012 $13,355 298 13,057 -2,120 Statement of Cash Flows (USD $) In Millions, unless otherwise specified Cash flows - operating activities Dec. 31, 2011 $13,864 223 13,641 -983 $14,443 292 14,151 29 Dec. 31, 2014 Dec. 31, 2013 Dec. 31, 2012 Dec. 31, 2011 Notes Free Cash Flow Cash from (used for) operating activities Provision for losses on financial receivables Cash from Operating Activities (C) 27,710 -3,993 23,717 28,579 -4,818 23,761 31,331 -3,832 27,499 33,359 -3,930 29,429 Cash investments reported Net decrease (increase) in GECC Financing Receivables Proceeds from sale of equity interest in NBCU LLC Cash from Investing Activities (I) C-I 5,030 -4,267 0 763 22,954 -29,117 2,715 16699 -9,703 33,464 -11,302 6,979 0 -4,323 31,822 -19,882 14,785 0 -5,097 34,526 16,958 -3,993 4,267 0 -1,218 -8,851 2,842 3,492 -2,230 -133 9,560 20,694 45,573 -4,818 -2,715 -16699 -9,278 -7,821 0 795 -11,328 -232 8,988 2,465 51,074 -3,832 -6,979 0 -4,164 -7,189 0 -1,278 7,163 -191 12,717 47,321 46,863 -3,930 -14,785 0 -1,456 -6,458 -4,578 841 -5,537 -182 15,571 26,349 nog kijken 1,218 8,851 -2,842 7,227 27,921 9,278 7,821 0 17,099 19,564 4,164 7,189 0 11,353 58,674 ' 9,283 0 -1,186 -1,913 -872 9,762 0 -3,295 -485 -1,368 9,192 0 -1,152 -879 -1,274 8,986 0 -204 -670 -1,168 305 -515 3,993 3,075 27,515 195 27,710 360 1,893 4,818 2,175 29,037 -458 28,579 -437 -920 3,832 8,029 31,015 316 31,331 1,204 -1,146 3,930 7,057 32,111 1,248 33,359 -13,727 6,262 -4,267 232 2,950 -13,458 5,883 2,715 528 3,324 -15,119 6,184 6,979 227 3,618 -12,637 5,867 14,785 8,950 8,877 Debt Financing reported Provision for losses on GECC financing receivables Net decrease (increase) in GECC financing receivables Proceeds from sale of equity interest in NBCU LLC Net dispositions (purchase) of GE shares for treasury Dividends paid to shareowners Proceeds from initial public offering of Synchrony Financial Effect of currency exchange reate changes on cash and equivalen Increase (decrease) in cash and equivalents Less cash and equivalents of discontinued operations at Decemb Cash paid during the year of interest Net Cash from Financing Activities (F) 0 2,639 6,447 -4,742 -288 -5,030 16,699 1,642 14,625 28,674 443 29,117 0 1,456 11,157 11,590 -288 11,302 0 -11,202 6,527 21,167 -1,285 19,882 Net dispositions (purchases) of GE shares for treasury Dividends paid to shareowners Proceeds from initial public offering of Synchrony Financial Net Payments to shareholders (d) F+d ' ' -6,112 13,286 37,548 -53,380 0 -14,230 2,197 45,392 -61,461 990 -2,231 2,450 63,019 -103,942 3,960 5,951 6,652 43,847 -85,706 0 0 -1,218 -8,851 2,842 -1,067 -16,952 -6 -16,958 -3,492 2,230 88,787 91,017 133 90,884 -9,560 -2,955 0 -9,278 -7,821 0 -1,418 -45,629 56 -45,573 -795 11,328 77,459 88,787 232 88,555 -8,988 -2,487 0 -4,164 -7,189 0 -2,958 -51,055 -19 -51,074 1,278 -7,163 84,622 77,459 191 77,268 -12,717 -3,237 -3,300 -1,456 -6,458 -4,578 -1,867 -46,915 52 -46,863 -841 5537 79,085 84,622 182 84,440 -15,571 -2919 1,456 6,458 4,578 12,492 38,841 naar income taxes Level 1 Effect of Leverage Financial Leverage Return on Common Equity Return on Net Operating Assets Financial Leverage Spread Check Operating Liability Leverage Implicit Interest on OL Return on Operating Assets Operating Liability Leverage Implicit Interest Rate Operating Liability Spread Operating Income Net Operating Assets Net Financial Obligations Common Shareholders Equity Net Financial Income Financial Liabilities Financial Assets Net Financial Assets Net Borrowing Costs Comprehensive Income Operating Assets Operating Liabilities Interest costs on pensions Tax Liabilities Short term interest rate Pensionplan cost Sales Level 2 Operating Profit Drivers Sales Operating Income Net Operating Assets Core OI from sales Other OI Unusual OI Profit Margin Asset Turnover Check 2014 (B) ROOA OLLEV (b) OLSPREAD RNOA OI NOA NFO CSE NFI FL FA NFA NBC CI OA OL IP TL OI NOA COI COOI UOI PM ATO RNOA 2012 2011 0.045 0.07 1.24 -0.02 0.05 ROCE RNOA FLEV SPREAD ROCE 2013 0.177 0.07 1.48 0.07 0.18 0.135 0.07 1.91 0.03 0.14 0.068 0.07 2.31 -0.00 0.07 2,648.88 0.05 0.66 0.01 0.04 0.07 6,125.61 0.06 0.54 0.03 0.02 0.07 5,532.82 0.06 0.49 0.03 0.03 0.07 22,332 306266.58 169433.58 136833 -16,151 309058 139624.42 -169433.58 10% 6,181 508724.58 202458 3,332 -1,547 1.32% 4,016 147,811 2014 147811 22332.00 306266.58 24161.00 -2054.00 ? 0.15 0.48 0.07 23,630 339350.42 202567.42 136783 537 335838 133270.58 -202567.42 0% 24,167 523289.42 183939 2,983 -275 3.38% 5,050 142,937 2013 142937 23630.00 339350.42 22483.00 746.00 ? 0.17 0.42 0.07 27,024 373974.49 245504.49 128470 -9,639 372469 126964.51 -245504.49 4% 17,385 558034.49 184060 2,993 -2,139 3.02% 4,366 144,121 2012 144121 27024.00 373974.49 24691.00 1938.00 ? 0.19 0.39 0.07 2014 2013 3,406.51 0.06 0.48 0.02 0.04 0.07 2012 29,163 391262.22 273128.22 118134 -21,131 414099 140970.78 -273128.22 8% 8,032 577349.22 186087 3,176 -5,294 1.81% 2.824 141,479 2011 141479 29163.00 391262.22 23773.00 4939.00 ? 0.21 0.36 0.07 Level 3 Profit Margin and Asset Turnover Drivers Profit Margin Drivers Sales Gross Margin GM Investment contracts, insurance losses and insurance Provision for losses on financing receivables (Note 6) Other costs and expenses Expense ratios EX.R OI from sales (pre-tax) Operating Taxes Ratio OTR OI from sales (after tax) Other operating income (after tax) OI (after tax) Effective tax rate OI from sales Proft Margin of Sales SALES PM Profit Margin of Sales (check) 1 0.45 0.02 0.03 0.23 0.27 0.18 0.01 0.16 -0.02 0.15 -0.06 0.16 0.16 1 0.46 0.02 0.03 0.25 0.30 0.16 0.00 0.16 0.00 0.17 -0.01 0.16 0.16 1 0.48 0.02 0.03 0.25 0.30 0.19 0.01 0.17 0.01 0.19 -0.08 0.17 0.17 1 0.52 0.02 0.03 0.26 0.31 0.21 0.04 0.17 0.00 0.21 -0.18 0.17 0.17 Asset turnover drivers Sales Accounts receivable Inventories PPE (net) Goodwill Other intangibles 1.00 0.16 0.12 0.45 0.52 0.10 1.00 0.15 0.12 0.48 0.54 0.10 1.00 0.14 0.11 0.48 0.51 0.08 1.00 0.14 0.10 0.46 0.51 0.09 Payables Accrued Liabilities Other liabilities 0.11 ? 0.48 0.12 ? 0.43 0.11 ? 0.47 0.12 ? 0.50 Growth Analysis Change in RI Common Shareholder's Equity Return on Operating Income r Residual Income Abnormal Earnings Growth 2014 CSE ROCE r RI AEG 136833.00 0.05 0.06 -2117.21 2013 136783.00 0.18 0.06 15860.13 17977.34 2012 128470.00 0.14 0.06 10197.28 -5662.85 2011 2011 118134.00 0.07 0.06 927.29 -9269.99 Notes *Since TI has no NBC in 2009, and no NFI in 2013 the ROCE for these years cannot be computed by means of this formula Return on Common Equity * LIBOR rates have severly decreased, and thus are very low 0.200 0.180 0.160 0.140 0.120 0.100 0.080 0.060 0.040 0.020 0.000 2014 2013 2012 2011 Return on Net Operating Assets Note: Postretirement Benefit Plans C 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0 Note short term rate to banks (banks and borrowing) Note: Postretirement Benefit Plans C 0 0 0 Profit Margin of Sales 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0 0 0 0 Change ROCE Change in RNOA change in pm operating income from sales change in pm other income change in pm operating income change in ATO change in leverage change in FLEV Change in SPREAD Change in CSE Change in NOA Change in OA Change in OL Change in NFO Average CSE (begin - end year t) average CSE PM OIS PM OI OOI ATO FLEV SPREAD -0.13 0.00 0.01 -0.02 -0.01 0.06 ? -0.24 -0.09 0.04 0.00 -0.01 0.00 -0.02 0.04 ? -0.43 0.04 0.07 0.00 0.00 0.00 -0.02 0.02 -0.40 0.04 - -33083.84 -14564.84 18519.00 -33133.84 136808.00 4181.50 -34624.07 -34745.07 -121.00 -42937.07 132626.50 9324.50 -17287.73 -19314.73 -2027.00 -27623.73 123302.00 - - Wat bedoelen ze hier met leverage WACC Cost of equity Beta Risk-free rate Market risk premium Ke 2014 1.27 0.22% 0.07 8.83% Yahoo Finance US Treasury Bill 52 weeks(2014) (S&P 500) 1950 - 2014 CAPM Cost of debt Kd Tax 0.0525 10.3% http://www.stockresearching.com/2014/05/02/general-electric-2014-fundamental-analysis-wacc-cost-of-debt-and-cost-of-equity-ge/ Not indicated in 10k Income tax tab Weights of debt/equity Total debt Total equity Total value We Wd WACC 511516 254150 765666 0.332 0.668 0.061 #shares ### Share price 12-31-201 $ 25.27 MV equity in $ 254149992600 MV equity in milions o 254150 Option Overhang Options Outstanding Average Strike Price Average Market Price Option Overhang Option Overhang (in Millions) 473,611 ? ? ? Moeten we dit wel berekenen? Het is wel te vinden, maar ik kijk hier liever samen naar From Balance sheet From Yahoo Finance Reformulated Income Statement/Sales Operating Revenue Cost of Sales Gross Margin Operating Expenses Investment contracts, insurance losses and insurance annuity benefits Provisions for losses on financing receivables Other costs and expenses Operating Income from Sales (before tax) Tax benefits (provision) for income taxes Operating Income from Sales (after tax) Other Operating Income (before tax items) Other Income Earnings (loss) from discontinued operations Tax benefits (provision) from discontinued operations Other Operating Income (after tax items) Currency translation adjustments Cash flow hedges Operating Income (after tax) Finance Income (Expense) Interest and other financial charges Preferred stock dividends declared Investment securities Benefit Plans Less Comprehensive Income (loss) attributable to noncontrolling inter Net Financing Income (Expense) Comprehensive Income 2014 100.00% 55.01% 44.99% 2013 100.00% 53.97% 46.03% 2012 100.00% 51.56% 48.44% 2011 Average Adjusted Notes 100.00% 100.00% 100.00% Adjusted is taken from first year of valuation 48.26% 52.20% 48.26% Adjusted is taken from first year of valuation 51.74% 47.80% 51.74% Adjusted is taken from first year of valuation 1.72% 2.70% 23.02% 17.54% -1.20% 16.35% 1.87% 3.37% 24.59% 16.20% -0.47% 15.73% 1.98% 2.66% 24.91% 18.89% -1.76% 17.13% 2.06% 2.78% 26.04% 20.86% -4.06% 16.80% 1.91% 2.88% 24.64% 18.38% -1.87% 16.50% 2.06% Adjusted is taken from first year of valuation 2.78% Adjusted is taken from first year of valuation 26.04% Adjusted is taken from first year of valuation 20.86% Adjusted is taken from first year of valuation -4.06% Adjusted is taken from first year of valuation 16.80% Adjusted is taken from first year of valuation 0.53% -0.23% 0.15% 0.45% -1.85% 0.16% 15.11% 2.17% -1.76% 0.28% 0.69% -0.22% 0.33% 16.53% 1.78% -0.96% 0.27% 1.10% 0.21% 0.31% 18.75% 3.58% -0.30% 0.32% 3.60% 0.13% 0.08% 20.61% 2.01% -0.81% 0.26% 1.46% -0.43% 0.22% 17.75% 3.58% Adjusted is taken from first year of valuation -0.30% Adjusted is taken from first year of valuation 0.32% Adjusted is taken from first year of valuation 3.60% Adjusted is taken from first year of valuation 0.13% Adjusted is taken from first year of valuation 0.08% Adjusted is taken from first year of valuation 20.61% Adjusted is taken from first year of valuation Pro-forma Forecast Income Statement Operating Revenue Cost of Sales Gross Margin Operating Expenses Investment contracts, insurance losses and insurance annuity benefits Provisions for losses on financing receivables Other costs and expenses Operating Income from Sales (before tax) Tax benefits (provision) for income taxes Operating Income from Sales (after tax) Other Operating Income (before tax items) Other Income Earnings (loss) from discontinued operations Tax benefits (provision) from discontinued operations Other Operating Income (after tax items) Currency translation adjustments Cash flow hedges Operating Income (after tax) -8.07% Average 0.00% Average 0.28% Average -0.10% Average 0.15% Average -8.04% Average -6.41% 0.00% 0.48% -4.92% 0.07% -10.93% -7.08% 0.00% -0.26% 7.91% 0.19% 0.38% -8.61% 0.00% 0.49% 1.60% 0.16% -6.69% -10.19% 0.00% 0.43% -4.98% 0.20% -14.94% -8.07% 0.00% 0.28% -0.10% 0.15% -8.04% 4.18% 16.91% 12.06% 5.68% 9.71% 3,358.70 4,532.86 42,492.42 34,046.07 -6,626.28 27,419.78 $ $ $ $ $ $ 3,240.85 4,373.81 41,001.41 32,851.43 -6,393.78 26,457.65 $ $ $ $ $ $ $ 5,839.67 -486.73 520.18 5,873.11 207.61 136.10 33,636.61 $ $ $ $ $ $ $ 5,634.76 -469.66 501.93 5,667.03 200.33 131.33 32,456.34 Finance Income (Expense) Interest and other financial charges $ Preferred stock dividends declared $ Investment securities $ Benefit Plans $ Less Comprehensive Income (loss) attributable to noncontrolling inter $ Net Financing Income (Expense) $ -13,174.77 463.54 -163.09 251.64 -13,125.95 $ $ $ $ $ $ -12,712.48 447.28 -157.36 242.81 -12,665.38 9,264.11 $ 8,939.04 Comprehensive Income $ 2013 2012 15.72% 11.97% 44.91% 152.10% 6.15% 0.72% 0.00% 51.79% 9.58% 1.72% 44.41% 4.26% 0.84% 344.17% 14.96% 12.12% 48.15% 169.26% 6.38% 0.70% 0.00% 54.32% 10.01% 0.19% 48.32% 0.03% 1.64% 366.10% 13.81% 10.67% 47.62% 178.49% 5.46% 0.69% 0.00% 50.73% 8.31% -0.04% 69.01% 0.15% 2.30% 387.20% 14.47% 9.75% 46.47% 197.85% 5.34% 0.67% 0.00% 51.33% 8.53% 0.09% 71.86% 0.50% 1.22% 408.08% 14.74% 11.13% 46.79% 174.42% 5.83% 0.70% 0.00% 52.04% 9.11% 0.49% 58.40% 1.24% 1.50% 376.39% 15.72% Adjusted is taken from the last year of valuation 11.97% Adjusted is taken from the last year of valuation 44.91% Adjusted is taken from the last year of valuation 152.10% Adjusted is taken from the last year of valuation 6.15% Adjusted is taken from the last year of valuation 0.72% Adjusted is taken from the last year of valuation 0.00% Adjusted is taken from the last year of valuation 51.79% Adjusted is taken from the last year of valuation 9.58% Adjusted is taken from the last year of valuation 1.72% Adjusted is taken from the last year of valuation 44.41% Adjusted is taken from the last year of valuation 4.26% Adjusted is taken from the last year of valuation 0.84% Adjusted is taken from the last year of valuation 344.17% Adjusted is taken from the last year of valuation Pro-forma Forecast Balance Sheet Operating Assets Current Receivables Inventories Property, Pland and Equipment Net Financing receivables Other GECC Receivables Cash held for operating activities Investment in GECC Goodwill Other Intangible Assets -net Deferred Income Taxes Other assets (excluding derivatives) Assets of business held for sale Assets of Discontinued operations Total Operating Assets $ $ $ $ $ $ $ $ $ $ $ $ $ $ 25,653.42 19,528.48 73,290.61 248,194.69 10,040.79 1,178.60 84,513.77 15,628.09 2,805.24 72,474.76 6,955.14 1,363.43 561,627.02 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 24,753.27 18,843.25 70,718.92 239,485.82 9,688.47 1,137.24 81,548.28 15,079.72 2,706.81 69,931.70 6,711.09 1,315.59 541,920.16 Operating Liabilities Accounts payable, principally trade accounts Progress collections and price adjustments accrued Other GE current liabilities Bank Deposits Investment Contracts, insurance liabilities and insurance annuity benef All other Liabilities Total Operating Liabilities Net Operating Assets (NOA) 11.05% 8.48% 8.58% 42.51% 18.66% 47.69% 136.97% 207.20% 11.52% 9.18% 9.36% 37.33% 18.57% 42.72% 128.69% 237.41% 10.86% 7.55% 10.34% 32.06% 19.61% 47.30% 127.71% 259.49% 11.59% 8.02% 10.46% 30.47% 21.04% 49.94% 131.53% 276.55% 11.26% 8.31% 9.68% 35.59% 19.47% 46.91% 131.22% 245.16% 11.05% Adjusted is taken from the last year of valuation 8.48% Adjusted is taken from the last year of valuation 8.58% Adjusted is taken from the last year of valuation 42.51% Adjusted is taken from the last year of valuation 18.66% Adjusted is taken from the last year of valuation 47.69% Adjusted is taken from the last year of valuation 136.97% Adjusted is taken from the last year of valuation 207.20% Adjusted is taken from the last year of valuation Operating Liabilities Accounts payable, principally trade accounts $ Progress collections and price adjustments accrued $ Other GE current liabilities $ Bank Deposits $ Investment Contracts, insurance liabilities and insurance annuity benef $ All other Liabilities $ Total Operating Liabilities $ Net Operating Assets (NOA) $ 18,036.99 13,840.73 14,000.81 69,373.65 30,445.85 77,813.65 223,511.67 338,115.34 $ $ $ $ $ $ $ $ 17,404.10 13,355.07 13,509.53 66,939.41 29,377.53 75,083.26 215,668.90 326,251.26 Financing Assets Cash Equivalents Investment securities Other assets Total Financing Assets $ $ $ $ 98,410.16 52,888.86 2,844.98 154,144.01 $ $ $ $ 94,957.06 51,033.05 2,745.16 148,735.27 Financing Liabilities Short-term borrowings Dividends payable Non-recourse borrowings of consolidated securitization entities Long-term borrowings Liabilities of business held for sale Liabilities of discountinued operations Total Financing Liabilities Shareholder's Equity $ $ $ $ $ $ $ $ 79,254.36 2,557.95 33,051.26 221,255.12 3,725.97 1,352.39 341,197.04 151,062.31 $ $ $ $ $ $ $ $ 76,473.42 2,468.19 31,891.53 213,491.53 3,595.23 1,304.93 329,224.82 145,761.70 $ 2018 148,882.86 $ 2017 143,658.73 Financing Liabilities Short-term borrowings Dividends payable Non-recourse borrowings of consolidated securitization entities Long-term borrowings Liabilities of business held for sale Liabilities of discountinued operations Total Financing Liabilities Shareholder's Equity Reformulated Equity Statement/Sales Beginning Balance Capital Contributions Preferred Stock Net Sales (purchases) of shares for treasury Dividends and other transactions with shareowners Total Capital Contributions Comprehensive Income 61.25% 30.77% 1.22% 93.24% 52.92% 33.66% 1.52% 88.10% 59.06% 33.48% 7.10% 99.64% 97.27% 1.27% 20.68% 172.08% 0.24% 1.15% 292.69% 83.50% 58.38% 32.58% 2.89% 93.86% 67.67% 1.44% 20.73% 156.64% 0.66% 1.66% 248.80% 90.23% 60.31% Adjusted is taken from the last year of valuation 32.41% Adjusted is taken from the last year of valuation 1.74% Adjusted is taken from the last year of valuation 94.46% Adjusted is taken from the last year of valuation 48.57% 1.57% 20.25% 135.59% 2.28% 0.83% 209.09% 92.57% 54.49% 1.55% 21.08% 155.08% 0.00% 2.75% 234.96% 95.69% 70.35% 1.37% 20.90% 163.81% 0.11% 1.90% 258.44% 89.14% 2014 105.68% 2013 92.43% 2012 82.78% 2011 Average Adjusted 84.07% 91.24% 0.00% 0.02% -6.06% -6.03% 4.18% 0.00% 5.59% -5.64% -0.05% 16.91% 0.00% 1.94% -5.12% -3.17% 12.06% 0.00% -0.12% -5.30% -5.42% 5.68% 0.00% 1.86% -5.53% -3.67% 9.71% Notes $ $ $ $ $ $ 2014 60.31% 32.41% 1.74% 94.46% Adjusted 2017 157,456.05 75,988.55 81,467.50 Reformulated Balance Sheet/Sales Operating Assets Current Receivables Inventories Property, Pland and Equipment Net Financing receivables Other GECC Receivables Cash held for operating activities Investment in GECC Goodwill Other Intangible Assets -net Deferred Income Taxes Other assets (excluding derivatives) Assets of business held for sale Assets of Discontinued operations Total Operating Assets Financing Assets Cash Equivalents Investment securities Other assets Total Financing Assets 2011 Average 5.68% Adjusted is taken from first year of valuation $ $ $ 2018 163,181.91 $ 78,751.86 $ 84,430.05 $ 48.57% Adjusted is taken from the last year of valuation 1.57% Adjusted is taken from the last year of valuation 20.25% Adjusted is taken from the last year of valuation 135.59% Adjusted is taken from the last year of valuation 2.28% Adjusted is taken from the last year of valuation 0.83% Adjusted is taken from the last year of valuation 209.09% Adjusted is taken from the last year of valuation 92.57% Adjusted is taken from the last year of valuation Notes Pro-forma Forecast Equity Statement Beginning Balance Capital Contributions Preferred Stock Net Sales (purchases) of shares for treasury Dividends and other transactions with shareowners Total Capital Contributions Comprehensive Income 2018 $ $ $ $ $ 3,033.66 -9,021.09 -5,987.42 15,840.51 2017 $ $ $ $ $ 2,927.21 -8,704.55 -5,777.33 15,284.69 Ending Balance 103.83% 109.28% 91.67% 84.32% Reformulated Cash Flow Statement/Sales Free Cash Flow Cash from (used for) operating activities Provision for losses on financial receivables Cash from Operating Activities (C) 2014 2013 2012 18.75% -2.70% 16.05% 19.99% -3.37% 16.62% 21.74% -2.66% 19.08% 23.58% -2.78% 20.80% Cash investments reported Net decrease (increase) in GECC Financing Receivables Proceeds from sale of equity interest in NBCU LLC Cash from Investing Activities (I) C-I 3.40% -2.89% 0.00% 0.52% 15.53% -20.37% 1.90% 11.68% -6.79% 23.41% -7.84% 4.84% 0.00% -3.00% 22.08% Debt Financing reported Provision for losses on GECC financing receivables Net decrease (increase) in GECC financing receivables Proceeds from sale of equity interest in NBCU LLC Net dispositions (purchase) of GE shares for treasury Dividends paid to shareowners Proceeds from initial public offering of Synchrony Financial Effect of currency exchange reate changes on cash and equivalents Increase (decrease) in cash and equivalents Less cash and equivalents of discontinued operations at December 31 Cash paid during the year of interest Net Cash from Financing Activities (F) 11.47% -2.70% 2.89% 0.00% -0.82% -5.99% 1.92% 2.36% -1.51% -0.09% 6.47% 14.00% 31.88% -3.37% -1.90% -11.68% -6.49% -5.47% 0.00% 0.56% -7.93% -0.16% 6.29% 1.72% Net dispositions (purchases) of GE shares for treasury Dividends paid to shareowners Proceeds from initial public offering of Synchrony Financial Net Payments to shareholders (d) F+d 0.82% 5.99% -1.92% 4.89% 18.89% 2011 141,479.00 29,163.00 391,262.22 23,773.00 5,092.00 97.28% Level 2: Operating Profit Drivers Sales Operating Income (OI) Net Operating Assets (NOA) Core OI from Sales Other OI Unusual OI Profit Margin Asset Turnover Check=Asset Turnover * Profit Margin $ $ $ $ $ 4.8513184515 0.3615963739 1.7542191607 $ $ $ -14.05% 10.45% 0.00% -3.60% 24.40% -9.72% 3.58% 2.92% -3.22% 21.36% Cash investments reported Net decrease (increase) in GECC Financing Receivables Proceeds from sale of equity interest in NBCU LLC Cash from Investing Activities (I) C-I $ $ $ $ $ -15,854.15 5,835.96 4,766.04 -5,252.14 34,849.41 $ $ $ $ $ -15,297.84 5,631.19 4,598.81 -5,067.85 33,626.58 35.44% -2.66% -4.84% 0.00% -2.89% -4.99% 0.00% -0.89% 4.97% -0.13% 8.82% 32.83% 33.12% -2.78% -10.45% 0.00% -1.03% -4.56% -3.24% 0.59% -3.91% -0.13% 11.01% 18.62% 27.98% -2.88% -3.58% -2.92% -2.81% -5.25% -0.33% 0.66% -2.09% -0.13% 8.15% 16.80% Debt Financing reported Provision for losses on GECC financing receivables Net decrease (increase) in GECC financing receivables Proceeds from sale of equity interest in NBCU LLC Net dispositions (purchase) of GE shares for treasury Dividends paid to shareowners Proceeds from initial public offering of Synchrony Financial Effect of currency exchange reate changes on cash and equivalents Increase (decrease) in cash and equivalents Less cash and equivalents of discontinued operations at December 31 Cash paid during the year of interest Net Cash from Financing Activities (F) $ $ $ $ $ $ $ $ $ $ $ $ 45,657.47 -4,695.08 -5,835.96 -4,766.04 -4,582.70 -8,572.15 -535.68 1,071.43 -3,417.59 -209.47 13,293.42 27,407.64 $ $ $ $ $ $ $ $ $ $ $ $ 44,055.40 -4,530.33 -5,631.19 -4,598.81 -4,421.90 -8,271.36 -516.89 1,033.83 -3,297.67 -202.12 12,826.97 26,445.93 2.89% 4.99% 0.00% 7.88% 40.71% 1.03% 4.56% 3.24% 8.83% 27.45% 2.81% 5.25% 0.33% 8.39% 25.19% Net dispositions (purchases) of GE shares for treasury Dividends paid to shareowners Proceeds from initial public offering of Synchrony Financial Net Payments to shareholders (d) F+d $ $ $ $ $ 4,582.70 8,572.15 535.68 13,690.54 41,098.17 $ $ $ $ $ 4,421.90 8,271.36 516.89 13,210.15 39,656.08 2012 144,121.00 27,024.00 373,974.49 24,691.00 1,580.00 2013 142,937.00 23,630.00 339,350.42 22,483.00 988.00 2014 147,811.00 22,332.00 306,266.58 24,161.00 666.00 2015 146,600.00 30,218.59 303,757.37 24,633.49 5,276.31 5.3330743043 0.3853765534 2.0552417942 6.0489631824 0.4212076708 2.5478696929 $ $ $ $ $ 6.6187981372 0.4826220347 3.1943778242 Sales of past and future 4 years $ $ $ $ $ 4.8513184515 0.4826220347 2.341353182 $ $ $ $ $ 2017 157,456.05 32,456.34 326,251.26 26,457.65 5,667.03 $ $ $ $ $ 4.8513184515 0.4826220347 2.341353182 4.8513184515 0.4826220347 2.341353182 $ $ $ $ $ 2018 163,181.91 33,636.61 338,115.34 27,419.78 5,873.11 4.8513184515 0.4826220347 2.341353182 Profit margin and asset Turnover of the past and future 4 years $165,000.00 7 $160,000.00 6 $155,000.00 5 $150,000.00 4 Sales Profit Margin Asset Turnover Profit margin and Asset Turnover $145,000.00 3 $140,000.00 2 $135,000.00 1 $130,000.00 2011 2012 2013 2014 Year 2015 2016 2017 2018 0 2011 2012 2013 2014 Year 2015 2016 2017 2018 2018 153,166.08 21.01% -2.88% 18.14% 2016 151,931.09 31,317.48 314,803.47 25,529.29 5,468.18 Notes 158,735.95 $ Pro-forma Forecast Cash Flow Statement Free Cash Flow Cash from (used for) operating activities Provision for losses on financial receivables Cash from Operating Activities (C) $ $ $ $ $ Adjusted $ 6.49% 5.47% 0.00% 11.96% 13.69% $ $ $ $ $ 2011 Average Ending Balance 2017 34,292.34 $ -4,695.08 $ 29,597.27 $ 33,089.06 -4,530.33 28,558.73 $ $ $ 2016 151,931.09 $ 73,322.20 $ 78,608.89 $ 2015 146,600.00 70,749.40 75,850.60 $ $ $ $ $ $ 3,127.13 4,220.34 39,562.71 31,698.71 -6,169.43 25,529.29 $ $ $ $ $ $ 3,017.40 4,072.25 38,174.50 30,586.44 -5,952.95 24,633.49 $ $ $ $ $ $ $ 5,437.04 -453.18 484.32 5,468.18 193.30 126.72 31,317.48 $ $ $ $ $ $ $ 5,246.26 -437.27 467.32 5,276.31 186.52 122.27 30,218.59 $ $ $ $ $ $ -12,266.41 431.58 -151.84 234.29 -12,220.96 $ $ $ $ $ $ -11,836.00 416.44 -146.51 226.07 -11,792.14 8,625.38 $ 8,322.73 $ 2016 2015 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 23,884.71 18,182.06 68,237.47 231,082.53 9,348.51 1,097.34 78,686.84 14,550.58 2,611.83 67,477.88 6,475.61 1,269.42 522,904.79 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 23,046.62 17,544.08 65,843.10 222,974.11 9,020.49 1,058.83 75,925.81 14,040.02 2,520.18 65,110.15 6,248.38 1,224.88 504,556.65 $ $ $ $ $ $ $ $ 16,793.41 12,886.46 13,035.50 64,590.58 28,346.71 72,448.67 208,101.32 314,803.47 $ $ $ $ $ $ $ $ 16,204.14 12,434.29 12,578.10 62,324.17 27,352.06 69,906.53 200,799.28 303,757.37 $ $ $ $ 91,625.12 49,242.36 2,648.83 143,516.32 $ $ $ $ 88,410.10 47,514.50 2,555.89 138,480.49 $ $ $ $ $ $ $ $ 73,790.05 2,381.58 30,772.49 206,000.35 3,469.07 1,259.15 317,672.70 140,647.09 $ $ $ $ $ $ $ $ 71,200.84 2,298.02 29,692.72 198,772.03 3,347.35 1,214.96 306,525.92 135,711.94 $ 2016 138,617.90 $ 2015 133,753.96 $ $ $ $ $ 2,824.50 -8,399.11 -5,574.61 14,748.36 $ $ $ $ $ 2,725.39 -8,104.40 -5,379.00 14,230.86 Growth Rates Short term Growth Rate Long Term Growth Rate First year Last three years -0.8% 3.6% Note 2015 Operating Revenue yahoo finance $ 146,000.00 $ 147,791.66 $ 2016 $ $ $ 142,605.81 2015 31,928.00 $ -4,371.37 $ 27,556.64 $ 30,807.69 -4,217.98 26,589.71 $ $ $ $ $ -14,761.06 5,433.59 4,437.44 -4,890.02 32,446.66 $ $ $ $ $ -14,243.11 5,242.94 4,281.73 -4,718.44 31,308.15 $ $ $ $ $ $ $ $ $ $ $ $ 42,509.54 -4,371.37 -5,433.59 -4,437.44 -4,266.74 -7,981.13 -498.75 997.56 -3,181.96 -195.03 12,376.88 25,517.98 $ $ $ $ $ $ $ $ $ $ $ $ 41,017.93 -4,217.98 -5,242.94 -4,281.73 -4,117.03 -7,701.08 -481.25 962.56 -3,070.31 -188.18 11,942.59 24,622.58 $ $ $ $ $ 4,266.74 7,981.13 498.75 12,746.62 38,264.60 $ $ $ $ $ 4,117.03 7,701.08 481.25 12,299.36 36,921.94 Required rate on equity capital: Growth rate 6.08% 3.64% Forecast E 2018 E 2017 E 2016 E 2015 R 2014 R 2013 R 2012 R 2011 Operating assets $ 508,724.58 $ 523,289.42 $ 558,034.49 $ 577,349.22 Operating liabilities $ 202,458.00 $ 183,939.00 $ 184,060.00 $ 186,087.00 Net operating assets Net financial obligations Equity $ 151,062.31 $ 145,761.70 $ 140,647.09 $ $ 306,266.58 $ 339,350.42 $ 373,974.49 $ 391,262.22 $ 169,433.58 $ 202,567.42 $ 245,504.49 $ 273,128.22 135,711.94 $ 136,833.00 $ 136,783.00 $ 128,470.00 $ 118,134.00 Revenues $ 163,181.91 $ 157,456.05 $ 151,931.09 $ 146,600.00 $ 147,811.00 $ 142,937.00 $ 144,121.00 $ 141,479.00 Operating income from sales (after tax) $ 27,419.78 $ 26,457.65 $ 25,529.29 $ Net financial expense (after tax) $ -13,125.95 $ -12,665.38 $ -12,220.96 $ Net income $ 9,264.11 $ 8,939.04 $ 8,625.38 $ 8,322.73 $ 0.061 0.061 0.061 0.061 80.72 $ 77.89 $ 75.16 $ 75.78 $ ROCE 24,633.49 $ 24,161.00 $ 22,483.00 $ -11,792.14 $ -16,151.00 $ 537.00 $ 24,691.00 $ 23,773.00 -9,639.00 $ -21,131.00 6,181.00 $ 24,167.00 $ 17,385.00 $ 8,032.00 -2,117.21 $ 15,860.13 $ 10,197.28 $ 927.29 Normal income Residual income $ Continuation value with growth in RI: $ 2,612.00 Discount factor 0.94 Estimated value $ NOA 2014 0.89 0.84 0.79 2,879.23 306,266.58 Stock Option Overhang - Total Value 309,145.81 Tax rate 10.3% 10.3% 10.3% Total Enterprise Value Growth Rate WACC 2.14% 2.39% 2.64% 2.89% 3.14% 3.39% 3.64% 3.89% 4.14% 4.39% 4.64% 4.89% 5.14% $ $ $ $ $ $ $ $ $ $ $ $ $ 4.58% 309,308.46 309,624.00 310,020.84 310,535.02 311,227.65 312,211.10 313,717.24 316,313.55 321,855.03 341,920.06 192,586.63 284,717.73 294,474.83 $ $ $ $ $ $ $ $ $ $ $ $ $ 4.83% 309,026.09 309,280.55 309,593.09 309,986.15 310,495.45 311,181.49 312,155.60 313,647.42 316,219.05 321,707.86 341,582.16 193,668.21 284,923.57 $ $ $ $ $ $ $ $ $ $ $ $ $ 5.08% 308,791.72 309,000.92 309,252.97 309,562.55 309,951.88 310,456.35 311,135.88 312,100.75 313,578.42 316,125.67 321,562.43 341,248.27 194,736.97 Value per Share Growth Rate 10.3% 2.14% 2.39% 2.64% 2.89% 3.14% 3.39% 3.64% 3.89% 4.14% 4.39% 4.64% 4.89% 5.14% $ $ $ $ $ $ $ $ $ $ $ $ $ 4.58% 30.75 30.79 30.83 30.88 30.95 31.04 31.19 31.45 32.00 34.00 19.15 28.31 29.28 $ $ $ $ $ $ $ $ $ $ $ $ $ 4.83% 30.73 30.75 30.78 30.82 30.87 30.94 31.04 31.19 31.44 31.99 33.96 19.26 28.33 $ $ $ $ $ $ $ $ $ $ $ $ $ 5.08% 30.70 30.72 30.75 30.78 30.82 30.87 30.94 31.03 31.18 31.43 31.97 33.93 19.36 $ $ $ $ $ $ $ $ $ $ $ $ $ 5.33% 308,594.08 308,768.82 308,976.04 309,225.71 309,532.35 309,918.00 310,417.70 311,090.81 312,046.55 313,510.24 316,033.39 321,418.71 340,918.31 WACC 5.33% $ 30.68 $ 30.70 $ 30.72 $ 30.75 $ 30.78 $ 30.81 $ 30.86 $ 30.93 $ 31.03 $ 31.17 $ 31.42 $ 31.96 $ 33.90 $ $ $ $ $ $ $ $ $ $ $ $ $ 5.58% 308,425.15 308,573.09 308,746.19 308,951.45 309,198.76 309,502.52 309,884.53 310,379.50 311,046.26 311,992.98 313,442.86 315,942.19 321,276.69 $ $ $ $ $ $ $ $ $ $ $ $ $ 5.58% 30.67 30.68 30.70 30.72 30.74 30.77 30.81 30.86 30.93 31.02 31.17 31.41 31.94 $ $ $ $ $ $ $ $ $ $ $ $ $ 5.83% 308,279.11 308,405.80 308,552.35 308,723.82 308,927.15 309,172.13 309,473.03 309,851.44 310,341.76 311,002.23 311,940.04 313,376.26 315,852.07 $ $ $ $ $ $ $ $ $ $ $ $ $ 5.83% 30.65 30.66 30.68 30.70 30.72 30.74 30.77 30.81 30.86 30.92 31.02 31.16 31.41 $ $ $ $ $ $ $ $ $ $ $ $ $ 6.08% 308,151.59 308,261.17 308,386.68 308,531.85 308,701.71 308,903.13 309,145.81 309,443.88 309,818.73 310,304.45 310,958.72 311,887.71 313,310.45 $ $ $ $ $ $ $ $ $ $ $ $ $ 6.08% 30.64 30.65 30.66 30.68 30.69 30.71 30.74 30.77 30.81 30.85 30.92 31.01 31.15 $ $ $ $ $ $ $ $ $ $ $ $ $ 6.33% 308,039.29 308,134.89 308,243.45 308,367.78 308,511.59 308,679.85 308,879.39 309,119.79 309,415.07 309,786.41 310,267.57 310,915.71 311,836.00 $ $ $ $ $ $ $ $ $ $ $ $ $ 6.33% 30.63 30.64 30.65 30.66 30.68 30.69 30.71 30.74 30.76 30.80 30.85 30.91 31.01 Total Enterprise Value Growth Rate 2.14% 2.39% 2.64% 2.89% 3.14% 3.39% 3.64% 3.89% 4.14% 4.39% 4.64% 4.89% 5.14% $ $ $ $ $ $ $ $ $ $ $ $ $ 4.58% 309,308.46 309,624.00 310,020.84 310,535.02 311,227.65 312,211.10 313,717.24 316,313.55 321,855.03 341,920.06 192,586.63 284,717.73 294,474.83 $ $ $ $ $ $ $ $ $ $ $ $ $ 4.83% 309,026.09 309,280.55 309,593.09 309,986.15 310,495.45 311,181.49 312,155.60 313,647.42 316,219.05 321,707.86 341,582.16 193,668.21 284,923.57 $ $ $ $ $ $ $ $ $ $ $ $ $ 5.08% 308,791.72 309,000.92 309,252.97 309,562.55 309,951.88 310,456.35 311,135.88 312,100.75 313,578.42 316,125.67 321,562.43 341,248.27 194,736.97 WACC 5.33% $ 308,594.08 $ 308,768.82 $ 308,976.04 $ 309,225.71 $ 309,532.35 $ 309,918.00 $ 310,417.70 $ 311,090.81 $ 312,046.55 $ 313,510.24 $ 316,033.39 $ 321,418.71 $ 340,918.31 5.08% 30.70 30.72 30.75 30.78 30.82 30.87 30.94 31.03 31.18 31.43 31.97 33.93 19.36 WACC 5.33% $ 30.68 $ 30.70 $ 30.72 $ 30.75 $ 30.78 $ 30.81 $ 30.86 $ 30.93 $ 31.03 $ 31.17 $ 31.42 $ 31.96 $ 33.90 Value per Share Growth Rate 2.14% 2.39% 2.64% 2.89% 3.14% 3.39% 3.64% 3.89% 4.14% 4.39% 4.64% 4.89% 5.14% $ $ $ $ $ $ $ $ $ $ $ $ $ 4.58% 30.75 30.79 30.83 30.88 30.95 31.04 31.19 31.45 32.00 34.00 19.15 28.31 29.28 $ $ $ $ $ $ $ $ $ $ $ $ $ 4.83% 30.73 30.75 30.78 30.82 30.87 30.94 31.04 31.19 31.44 31.99 33.96 19.26 28.33 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 5.58% 308,425.15 308,573.09 308,746.19 308,951.45 309,198.76 309,502.52 309,884.53 310,379.50 311,046.26 311,992.98 313,442.86 315,942.19 321,276.69 $ $ $ $ $ $ $ $ $ $ $ $ $ 5.58% 30.67 30.68 30.70 30.72 30.74 30.77 30.81 30.86 30.93 31.02 31.17 31.41 31.94 $ $ $ $ $ $ $ $ $ $ $ $ $ 5.83% 308,279.11 308,405.80 308,552.35 308,723.82 308,927.15 309,172.13 309,473.03 309,851.44 310,341.76 311,002.23 311,940.04 313,376.26 315,852.07 $ $ $ $ $ $ $ $ $ $ $ $ $ 5.83% 30.65 30.66 30.68 30.70 30.72 30.74 30.77 30.81 30.86 30.92 31.02 31.16 31.41 $ $ $ $ $ $ $ $ $ $ $ $ $ 6.08% 308,151.59 308,261.17 308,386.68 308,531.85 308,701.71 308,903.13 309,145.81 309,443.88 309,818.73 310,304.45 310,958.72 311,887.71 313,310.45 $ $ $ $ $ $ $ $ $ $ $ $ $ 6.08% 30.64 30.65 30.66 30.68 30.69 30.71 30.74 30.77 30.81 30.85 30.92 31.01 31.15 $ $ $ $ $ $ $ $ $ $ $ $ $ 6.33% 308,039.29 308,134.89 308,243.45 308,367.78 308,511.59 308,679.85 308,879.39 309,119.79 309,415.07 309,786.41 310,267.57 310,915.71 311,836.00 $ $ $ $ $ $ $ $ $ $ $ $ $ 6.33% 30.63 30.64 30.65 30.66 30.68 30.69 30.71 30.74 30.76 30.80 30.85 30.91 31.01 Summary of Significant Accounting Policies 12 Months Ended Dec. 31, 2014 Accounting Policies [Abstract] Summary Of Significant Accounting Policies Notes to Consolidated Financial Statements Note 1. Basis of Presentation and Summary of Significant Accounting Policies Accounting Principles Our financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP). Consolidation Our financial statements consolidate all of our affiliates - entities in which we have a controlling financial interest, most often because we hold a majority voting interest. To determine if we hold a controlling financial interest in an entity, we first evaluate if we are required to apply the variable interest entity (VIE) model to the entity, otherwise the entity is evaluated under the voting interest model. Where we hold current or potential rights that give us the power to direct the activities of a VIE that most significantly impact the VIE's economic performance combined with a variable interest that gives us the right to receive potentially significant benefits or the obligation to absorb potentially significant losses, we have a controlling financial interest in that VIE. Rights held by others to remove the party with power over the VIE are not considered unless one party can exercise those rights unilaterally. When changes occur to the design of an entity, we reconsider whether it is subject to the VIE model. We continuously evaluate whether we have a controlling financial interest in a VIE. We hold a controlling financial interest in other entities where we currently hold, directly or indirectly, more than 50% of the voting rights or where we exercise control through substantive participating rights or as a general partner. Where we are a general partner, we consider substantive removal rights held by other partners in determining if we hold a controlling financial interest. We reevaluate whether we have a controlling financial interest in these entities when our voting or substantive participating rights change. Associated companies are unconsolidated VIEs and other entities in which we do not have a controlling financial interest, but over which we have significant influence, most often because we hold a voting interest of 20% to 50%. Associated companies are accounted for as equity method investments. Results of associated companies are presented on a one-line basis. Investments in, and advances to, associated companies are presented on a one-line basis in the caption \"All other assets\" in our Statement of Financial Position, net of allowance for losses, which represents our best estimate of probable losses inherent in such assets. Synchrony Financial Initial Public Offering On August 5, 2014, we completed the initial public offering (IPO) of our North American Retail Finance business, Synchrony Financial, as a first step in a planned, staged exit from that business. Synchrony Financial closed the IPO of 125 million shares of common stock at a price to the public of $23.00 per share and on September 3, 2014, Synchrony Financial issued an additional 3.5 million shares of common stock pursuant to an option granted to the underwriters in the IPO (Underwriters' Option). We received net proceeds from the IPO and the Underwriters' Option of $2,842 million, which remain at Synchrony Financial. Following the closing of the IPO and the Underwriters' Option, we currently own approximately 85% of Synchrony Financial and as a result, GECC continues to consolidate the business. The 15% is presented as noncontrolling interests. In addition, in August 2014, Synchrony Financial completed issuances of $3,593 million of senior unsecured debt with maturities up to 10 years and $8,000 million of unsecured term loans maturing in 2019, and in October 2014 completed issuances of $750 million of unsecured term loans maturing in 2019 under the New Bank Term Loan Facility with third party lenders. Subsequent to December 31, 2014 through February 13, 2015, Synchrony Financial issued an additional $1,000 million of senior unsecured debt maturing in 2020. Financial Statement Presentation We have reclassified certain prior-year amounts to conform to the current-year's presentation. Financial data and related measurements are presented in the following categories: GE. This represents the adding together of all affiliates other than General Electric Capital Corporation (GECC), whose continuing operations are presented on a one-line basis, giving effect to the elimination of transactions among such affiliates. GECC. This represents the adding together of all affiliates of GECC, giving effect to the elimination of transactions among such affiliates. Consolidated. This represents the adding together of GE and GECC, giving effect to the elimination of transactions between GE and GECC. Operating Segments. These comprise our eight businesses, focused on the broad markets they serve: Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Appliances & Lighting and GE Capital. Unless otherwise indicated, information in these notes to consolidated financial statements relates to continuing operations. Certain of our operations have been presented as discontinued. See Note 2. The effects of translating to U.S. dollars the financial statements of non-U.S. affiliates whose functional currency is the local currency are included in shareowners' equity. Asset and liability accounts are translated at year-end exchange rates, while revenues and expenses are translated at average rates for the respective periods. Preparing financial statements in conformity with GAAP requires us to make estimates based on assumptions about current, and for some estimates future, economic and market conditions (for example, unemployment, market liquidity, the real estate market, etc.), which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current conditions and how we expect them to change in the future, as appropriate, it is reasonably possible that in 2015 actual conditions could be worse than anticipated in those estimates, which could materially affect our results of operations and financial position. Among other effects, such changes could result in future impairments of investment securities, goodwill, intangibles and long-lived assets, incremental losses on financing receivables, establishment of valuation allowances on deferred tax assets and increased tax liabilities. Sales of Goods and Services We record all sales of goods and services only when a firm sales agreement is in place, delivery has occurred or services have been rendered and collectability of the fixed or determinable sales price is reasonably assured. Arrangements for the sale of goods and services sometimes include multiple components. Most of our multiple component arrangements involve the sale of goods and services in the Healthcare segment. Our arrangements with multiple components usually involve an upfront deliverable of large machinery or equipment and future service deliverables such as installation, commissioning, training or the future delivery of ancillary products. In most cases, the relative values of the undelivered components are not significant to the overall arrangement and are typically delivered within three to six months after the core product has been delivered. In such agreements, selling price is determined for each component and any difference between the total of the separate selling prices and total contract consideration (i.e., discount) is allocated pro rata across each of the components in the arrangement. The value assigned to each component is objectively determined and obtained primarily from sources such as the separate selling price for that or a similar item or from competitor prices for similar items. If such evidence is not available, we use our best estimate of selling price, which is established consistent with the pricing strategy of the business and considers product configuration, geography, customer type, and other market specific factors. Except for goods sold under long-term agreements, we recognize sales of goods under the provisions of U.S. Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) 104, Revenue Recognition. We often sell consumer products and computer hardware and software products with a right of return. We use our accumulated experience to estimate and provide for such returns when we record the sale. In situations where arrangements include customer acceptance provisions based on seller or customer-specified objective criteria, we recognize revenue when we have reliably demonstrated that all specified acceptance criteria have been met or when formal acceptance occurs, respectively. In arrangements where we provide goods for trial and evaluation purposes, we only recognize revenue after customer acceptance occurs. Unless otherwise noted, we do not provide for anticipated losses before we record sales. We recognize revenue on agreements for sales of goods and services under power generation unit and uprate contracts, nuclear fuel assemblies, larger oil drilling equipment projects, aeroderivative unit contracts, military development contracts, locomotive production contracts, and long-term construction projects, using long-term construction and production contract accounting. We estimate total long-term contract revenue net of price concessions as well as total contract costs. For goods sold under power generation unit and uprate contracts, nuclear fuel assemblies, aeroderivative unit contracts, military development contracts and locomotive production contracts, we recognize sales as we complete major contractspecified deliverables, most often when customers receive title to the goods or accept the services as performed. For larger oil drilling equipment projects and long-term construction projects, we recognize sales based on our progress toward contract completion measured by actual costs incurred in relation to our estimate of total expected costs. We measure long-term contract revenues by applying our contract-specific estimated margin rates to incurred costs. We routinely update our estimates of future costs for agreements in process and report any cumulative effects of such adjustments in current operations. We provide for any loss that we expect to incur on these agreements when that loss is probable. We recognize revenue upon delivery for sales of aircraft engines, military propulsion equipment and related spare parts not sold under long-term product services agreements. Delivery of commercial engines, non-U.S. military equipment and all related spare parts occurs on shipment; delivery of military propulsion equipment sold to the U.S. government or agencies thereof occurs upon receipt of a Material Inspection and Receiving Report, DD Form 250 or Memorandum of Shipment. Commercial aircraft engines are complex equipment manufactured to customer order under a variety of sometimes complex, longterm agreements. We measure sales of commercial aircraft engines by applying our contract-specific estimated margin rates to incurred costs. We routinely update our estimates of future revenues and costs for commercial aircraft engine agreements in process and report any cumulative effects of such adjustments in current operations. Significant components of our revenue and cost estimates include price concessions and performance-related guarantees as well as material, labor and overhead costs. We measure revenue for military propulsion equipment and spare parts not subject to longterm product services agreements based on the specific contract on a specifically measured output basis. We provide for any loss that we expect to incur on these agreements when that loss is probable; consistent with industry practice, for commercial aircraft engines, we make such provision only if such losses are not recoverable from future highly probable sales of spare parts and services for those engines. We sell product services under long-term product maintenance or extended warranty agreements in our Aviation, Power & Water, Oil & Gas and Transportation segments, where costs of performing services are incurred on other than a straight-line basis. We also sell product services in our Healthcare segment, where such costs generally are expected to be on a straight-line basis. For the Aviation, Power & Water, Oil & Gas and Transportation agreements, we recognize related sales based on the extent of our progress toward completion measured by actual costs incurred in relation to total expected costs. We routinely update our estimates of future costs for agreements in process and report any cumulative effects of such adjustments in current operations. For the Healthcare agreements, we recognize revenues on a straight-line basis and expense rel