Question
. Locate GEs third quarter 2017 10-Q SEC filing. Since GEs fiscal year is a calendar year, this is the 10-Q for the reporting period
. Locate GEs third quarter 2017 10-Q SEC filing. Since GEs fiscal year is a calendar year, this is the 10-Q for the reporting period ending September 30, 2017. You can use the U.S. Securities and Exchange Commission (SEC) Edgar database and using GEs ticker, which is GE.
a. Locate the Summary of Operating Segments table in the MD&A section of the 10-Q. This table shows the revenues and the profitability in each of GEs eight segments for the third quarter and the nine months to date for 2016 and 2017.
b. What are the Oil & Gas segment revenues and profitability for the third quarter of 2017? What are the Oil & Gas segment revenues and profitability for the nine months ended September 30, 2017?
c. What does the Summary of Operating Segments table presentation suggest will happen to GEs total segment profitability in the third quarter of 2017 if it were to drop the Oil & Gas segment?
d. What additional information about the Oil & Gas segment is shown with the Summary of Operating Segments table?
e. Do you think GE should keep or drop the Oil & Gas segment? Explain your decision.
2. Locate GEs annual 2017 10-K SEC filing. Since GEs fiscal year is a calendar year, this is the 10-K for the reporting period ending December 31, 2017. You can use the U.S. SEC Edgar database
a. Locate the Summary of Operating Segments table in the MD&A section of the 10-K. What happened to the Oil & Gas segment? Did GE keep or drop it? Why do you think GE made the decision it did?
b. Evaluate and comment on the trends throughout the five-year period reported on in the MD&A of Oil & Gas segment profitability. How do these trends compare to the trends over the same period for the Oil & Gas segment revenues? How does GE explain these trends? (Hint: Locate and read the portion of the MD&A that discusses the Oil & Gas segment.)
c. Pretend that you work at GE and are responsible for deciding whether the company will keep or drop the Oil & Gas segment. What information would you need/want to know before making this decision? The goal is to develop a list of questions that you would ask if you were tasked with determining whether the segment should be kept or dropped. What information would you need to do this? You should incorporate what you know about relevant information in a decision- making context to determine what would be relevant for you to know before deciding what happens to the segment. You do not need to be able to answer these questions or to find the answers to them elsewhere. You are not required to read any further in the 10-Q/10-K or do any additional research to answer this. You can be as creative as possible when thinking critically about what would be relevant for this decision-maker to know before deciding the fate of the Oil & Gas segment.
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