EX-99 2 ex99.htm ex99.htm
 
 
Exhibit 99
 

 
PRESS RELEASE
GE Reports 4Q ’09 EPS of $0.28; FY ’09 EPS of $1.03
Revenues Total $41.4B for Quarter; $157B for Year
Industrial CFOA of $5.1B in 4Q and $16.6B for Year
 
 


4Q and Full-year 2009 Highlights (Continuing Operations Attributable to GE)
 
 
ü
4Q earnings per share (EPS) of $0.28 attributable to common shareowners; full-year (FY) EPS of $1.03; quarterly and annual earnings of $3.0 billion and $11.2 billion attributable to GE
üSeeing encouraging signs in our businesses at year-end
·  
Infrastructure orders of $22.1 billion in 4Q up $3.7 billion from 3Q; equipment orders up 25% from 3Q
·  
Non-earning assets down $0.6 billion, reserves up $0.7 billion and Consumer delinquencies stabilizing
üGE business model performing well
·  
Strong Industrial cash flow from operations of $16.6 billion for full year
·  
Strong and improving Industrial margins in 4Q of 17.7%, up 40 bps year-over-year
·  
High-margin service orders grew 14% in 4Q
·  
Strong execution at Capital Finance; earned $2.3 billion in ’09; ahead of plan on key metrics
ü2010 framework remains achievable and balanced
·  
Total backlog increased to record $175 billion at year-end
 


FAIRFIELD, Conn. – Jan. 22, 2010 – GE announced today fourth-quarter 2009 earnings from continuing operations (attributable to GE) of $3.0 billion, or $0.28 per share.  Revenues were $41.4 billion for the quarter and $157 billion for the year.

“GE’s environment has improved and we saw some encouraging signs at year-end,” GE Chairman and CEO Jeff Immelt said.  “Fourth-quarter Infrastructure orders increased $3.7 billion from third quarter to $22.1 billion.  Total company backlog of equipment and services increased slightly from the prior quarter to a record $175 billion. Service orders remained strong, growing 14% for the quarter. Our Healthcare business experienced solid orders growth and enters 2010 with a higher backlog than last year. Non-earning assets declined $0.6 billion in the quarter and Consumer delinquencies are stabilizing.

“We continue to operate the company with discipline,” Immelt said. “Cash generated from GE Industrial operating activities totaled $5.1 billion in the quarter and $16.6 billion for the year. At year-end, we have $72 billion of consolidated cash. Industrial margins are strong and improved to 17.7% for the fourth quarter, up 40 bps over 2008. We recorded $2.2 billion after tax of restructuring and other charges in 2009, allowing us to lower cost and strengthen our long-term outlook.


 
 

“Capital Finance is executing well in a difficult environment, earning $0.3 billion in the quarter and $2.3 billion for the year,” Immelt said. “Every segment at GE Capital was profitable with the exception of Commercial Real Estate, which continues to operate in a difficult environment.  We completed 100% of our 2010 long-term funding plan for GE Capital, and have raised about $4.4 billion in 2010 that will go towards our 2011 plan. Capital Finance reserves increased $0.7 billion to $8.1 billion.

Restructuring and other charges of $0.09 per share were partially offset by other benefits in the quarter, including $0.01 per share in after-tax transaction gains and a $0.05 per share tax benefit from a lower industrial tax rate.

Significant new global partnerships and sizeable Infrastructure wins were among fourth-quarter highlights. GE agreed to team with the Commercial Aircraft Corporation of China to power China's newest commercial aircraft in development, the C919, and established a joint venture with China Aviation Industry Corporation to develop and market integrated avionics systems.  In addition, the company won: a $1.4 billion commitment from Caithness Energy for what could be the world’s largest wind farm by output; a 15-year, $1 billion engine service agreement with Brazilian airline Azul Linhas Aéreas; a 100-locomotive order from South Africa's state-owned rail freight logistics utility, Transnet Ltd.; a $1.3 billion contract to supply equipment and long-term services to help boost Kuwait's electricity production; and an American Airlines commitment to use the GEnx-1B engine for its expected order of 42 firm Boeing 787 aircraft plus 58 options.

“During the difficult economy of 2009, we took a series of actions to improve GE so that we would be positioned for growth in the future,” Immelt said. “We have repositioned GE Capital to be safer and more focused.  We have lowered our cost base and simplified our portfolio. At the same time, we grew GE R&D spend by 7%, expanded our product lines and made dynamic global investments. We are positioned to win in this environment.”

Full-year and Fourth-quarter 2009 Financial Highlights:

Full-year earnings from continuing operations attributable to GE were $11.2 billion, down 38% from $18.1 billion in 2008. EPS from continuing operations was $1.03, down 42% from last year. Segment profit fell 27% compared with 2008, as 13% growth at Energy Infrastructure and 10% growth at Consumer & Industrial were more than offset by declines of 73% at Capital Finance, 28% at NBC Universal and 8% at Technology Infrastructure.

Including the effects of discontinued operations, full year net earnings attributable to GE were $11.0 billion ($1.01 per share attributable to common shareowners) in 2009 compared with $17.4 billion ($1.72 per share attributable to common shareowners) in 2008.

Full-year revenues decreased 14% to $156.8 billion. GE Capital Services’ (GECS) revenues fell 24% compared with last year to $54.2 billion. Industrial sales were $103.5 billion, down 8% from 2008.

Fourth-quarter earnings from continuing operations attributable to GE were $3.0 billion, down 22% from $3.9 billion in the fourth quarter of 2008. EPS from continuing operations was $0.28, down 22% from the fourth quarter of last year. Segment profit declined 16% compared with the fourth quarter of 2008, as 9% growth at Energy Infrastructure and 278%



 
2
 

growth at Consumer & Industrial were more than offset by declines of 67% at Capital Finance, 30% at NBC Universal and 16% at Technology Infrastructure.

Including the effects of discontinued operations, fourth-quarter net earnings attributable to GE were $3.0 billion ($0.28 per share attributable to common shareowners) compared with $3.7 billion ($0.35 per share attributable to common shareowners) in the fourth quarter of 2008.

Fourth-quarter revenues fell 10% to $41.4 billion. GECS revenues fell 14% versus last year to $13.5 billion. Industrial sales were $28.3 billion, down 9% from 2008.

Cash generated from GE Industrial operating activities in 2009 totaled $16.6 billion, down 1% from $16.7 billion last year.

“Last month, we reviewed a 2010 financial framework that was about flat with 2009,” Immelt said. “We believe this framework is quite achievable and sets us up for solid growth in 2011 and beyond. Moreover, due to the company’s strong cash position, we will have an opportunity to keep GE secure and create long-term shareholder value.”

The accompanying tables include information integral to assessing the company’s financial position, operating performance and cash flow.

GE will discuss preliminary fourth-quarter and full-year results on a Webcast at 8:30 a.m. ET today, available at www.ge.com/investor.  Related charts will be posted there prior to the call.
 
*   *   *
 
 
GE (NYSE: GE) is a diversified infrastructure, finance and media company taking on the world’s toughest challenges. From aircraft engines and power generation to financial services, medical imaging, and television programming, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
 
 
Caution Concerning Forward-Looking Statements:
 
 
This document contains “forward-looking statements”- that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” believe,” “seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: the severity and duration of current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; the impact of U.S. and foreign government programs to restore liquidity and stimulate national and global economies; the impact of conditions in the financial and credit markets on the availability and cost of GE Capital’s funding and on our ability to reduce GE Capital’s asset levels as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the soundness of other financial institutions with which GE Capital does business; the adequacy of our cash flow and earnings and other conditions which may affect our ability to maintain our quarterly dividend at the current level; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, network television, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of proposed financial services regulation; strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
 
 

 
3
 

Media Contact:
Anne Eisele, 203.373.3061 (office); 203.522.9045 (mobile)
anne.eisele@ge.com
 
Investor Contact:
Trevor Schauenberg, 203.373.2468 (office)
trevor.schauenberg@ge.com

 
4
 

GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings

 
Consolidated
    
GE(a)
  
Financial
Services (GECS)
  
Three months ended December 31, 2009
  
2009
    
2008
  
V
%
    
2009
    
2008
  
V
%
  
2009
    
2008
  
V
%
     
    
    
    
  
    
    
    
    
    
    
  
       
    
    
    
    
    
Revenues
                                                  
Sales of goods and services
$
28,429
  
$
31,188
        
$
28,298
  
$
31,114
      
$
279
  
$
299
      
Other income (expense) 
  
106
    
(107
)
        
144
    
(19
)
      
–
    
–
      
GECS earnings from continuing operations
  
–
    
–
          
111
    
534
        
–
    
–
      
GECS revenues from services
  
12,903
    
15,132
          
–
    
–
        
13,224
    
15,487
      
Total revenues
  
41,438
    
46,213
  
(10)
%
    
28,553
    
31,629
  
(10)
%
  
13,503
    
15,786
  
(14)
%
                                                   
Costs and expenses
                                                  
Cost of sales, operating and administrative expenses
  
30,683
    
33,617
          
24,620
    
26,506
        
6,358
    
7,476
      
Interest and other financial charges
  
4,467
    
6,106
          
402
    
472
        
4,225
    
5,874
      
Investment contracts, insurance losses and
                                                  
insurance annuity benefits
  
760
    
801
          
–
    
–
        
812
    
864
      
Provision for losses on financing receivables
  
2,907
    
3,065
          
–
    
–
        
2,907
    
3,065
      
Total costs and expenses
  
38,817
    
43,589
  
(11)
%
    
25,022
    
26,978
  
(7)
%
  
14,302
    
17,279
  
(17)
%
                                                   
Earnings (loss) from continuing operations
                                                  
before income taxes
  
2,621
    
2,624
  
–
      
3,531
    
4,651
  
(24)
%
  
(799
)
  
(1,493
)
(46)
%
Benefit (provision) for income taxes
  
524
    
1,382
          
(346
)
  
(692
)
      
870
    
2,074
      
Earnings from continuing operations
  
3,145
    
4,006
  
(21)
%
    
3,185
    
3,959
  
(20)
%
  
71
    
581
  
(88)
%
                                                   
Loss from discontinued operations, net of taxes
  
(18
)
  
(145
)
        
(18
)
  
(145
)
      
(18
)
  
(151
)
    
                                                   
Net earnings
  
3,127
    
3,861
  
(19)
%
    
3,167
    
3,814
  
(17)
%
  
53
    
430
  
(88)
%
                                                   
Less net earnings (loss) attributable to
                                                  
noncontrolling interests
  
114
    
139
          
154
    
92
        
(40
)
  
47
      
Net earnings attributable to the Company
  
3,013
    
3,722
  
(19)
%
    
3,013
    
3,722
  
(19)
%
  
93
    
383
  
(76)
%
                                                   
Preferred stock dividends declared
  
(75
)
  
(75
)
        
(75
)
  
(75
)
      
–
    
–
      
Net earnings attributable to GE common shareowners
$
2,938
  
$
3,647
  
(19)
%
  
$
2,938
  
$
3,647
  
(19)
%
$
93
  
$
383
  
(76)
%
                                                   
                                                   
Amounts attributable to the Company:
                                                  
Earnings from continuing operations
$
3,031
  
$
3,867
  
(22)
%
  
$
3,031
  
$
3,867
  
(22)
%
$
111
  
$
534
  
(79)
%
Loss from discontinued operations, net of taxes
  
(18
)
  
(145
)
        
(18
)
  
(145
)
      
(18
)
  
(151
)
    
Net earnings attributable to the Company
$
3,013
  
$
3,722
  
(19)
%
  
$
3,013
  
$
3,722
  
(19)
%
$
93
  
$
383
  
(76)
%
                                                   
                                                   
Per-share amounts – earnings from continuing
                                                  
operations
                                                  
Diluted earnings per share
$
0.28
  
$
0.36
  
(22)
%
                                  
Basic earnings per share
$
0.28
  
$
0.36
  
(22)
%
                                  
                                                   
Per-share amounts – net earnings
                                                  
Diluted earnings per share
$
0.28
  
$
0.35
  
(20)
%
                                  
Basic earnings per share
$
0.28
  
$
0.35
  
(20)
%
                                  
                                                   
Total average equivalent shares
                                                  
Diluted shares
  
10,661
    
10,466
  
2
%
                                  
Basic shares
  
10,656
    
10,461
  
2
%
                                  
                                                   
Dividends declared per share
$
0.10
  
$
0.31
  
(68)
%
                                  
                                                   

(a)
Refers to the Industrial businesses of the Company including GECS on an equity basis.
 
Dollar amounts and share amounts in millions; per-share amounts in dollars; unaudited. Supplemental consolidating data are shown for "GE" and "GECS." Transactions between GE and GECS have been eliminated from the "Consolidated" columns. See Note 1 to the 2008 consolidated financial statements at www.ge.com/ar2008 for further information about consolidation matters.
 
 
 
 
5
GENERAL ELECTRIC COMPANY
Condensed Statement of Earnings
 
 
Consolidated
    
GE(a)
  
Financial
Services (GECS)
  
Year ended December 31
  
2009
    
2008
  
V
%
    
2009
    
2008
  
V
%
  
2009
    
2008
  
V
%
     
    
    
    
  
    
    
    
    
    
    
  
       
    
    
    
    
    
Revenues
                                                  
Sales of goods and services
$
103,777
  
$
112,769
        
$
103,457
  
$
112,014
      
$
970
  
$
1,773
      
Other income
  
1,006
    
1,586
          
1,179
    
1,965
        
–
    
–
      
GECS earnings from continuing operations
  
–
    
–
          
1,590
    
7,774
        
–
    
–
      
GECS revenues from services
  
52,000
    
68,160
          
–
    
–
        
53,193
    
69,514
      
Total revenues
  
156,783
    
182,515
  
(14)
%
    
106,226
    
121,753
  
(13)
%
  
54,163
    
71,287
  
(24)
%
                                                   
Costs and expenses
                                                  
Cost of sales, operating and administrative expenses
  
113,725
    
125,793
          
90,606
    
97,674
        
24,308
    
29,602
      
Interest and other financial charges
  
18,769
    
26,209
          
1,478
    
2,153
        
17,942
    
25,116
      
Investment contracts, insurance losses and
                                                  
insurance annuity benefits
  
3,017
    
3,213
          
–
    
–
        
3,193
    
3,421
      
Provision for losses on financing receivables
  
10,928
    
7,518
          
–
    
–
        
10,928
    
7,518
      
Total costs and expenses
  
146,439
    
162,733
  
(10)
%
    
92,084
    
99,827
  
(8)
%
  
56,371
    
65,657
  
(14)
%
                                                   
Earnings (loss) from continuing operations
                                                  
before income taxes
  
10,344
    
19,782
  
(48)
%
    
14,142
    
21,926
  
(36)
%
  
(2,208
)
  
5,630
  
(139)
%
Benefit (provision) for income taxes
  
1,090
    
(1,052
)
        
(2,739
)
  
(3,427
)
      
3,829
    
2,375
      
Earnings from continuing operations
  
11,434
    
18,730
  
(39)
%
    
11,403
    
18,499
  
(38)
%
  
1,621
    
8,005
  
(80)
%
                                                   
Loss from discontinued operations, net of taxes
  
(193
)
  
(679
)
        
(193
)
  
(679
)
      
(175
)
  
(719
)
    
                                                   
Net earnings
  
11,241
    
18,051
  
(38)
%
    
11,210
    
17,820
  
(37)
%
  
1,446
    
7,286
  
(80)
%
                                                   
Less net earnings attributable to noncontrolling interests
  
216
    
641
          
185
    
410
        
31
    
231
      
Net earnings attributable to the Company
  
11,025
    
17,410
  
(37)
%
    
11,025
    
17,410
  
(37)
%
  
1,415
    
7,055
  
(80)
%
                                                   
Preferred stock dividends declared
  
(300
)
  
(75
)
        
(300
)
  
(75
)
      
–
    
–
      
Net earnings attributable to GE common shareowners
$
10,725
  
$
17,335
  
(38)
%
  
$
10,725
  
$
17,335
  
(38)
%
$
1,415
  
$
7,055
  
(80)
%
                                                   
                                                   
Amounts attributable to the Company:
                                                  
Earnings from continuing operations
$
11,218
  
$
18,089
  
(38)
%
  
$
11,218
  
$
18,089
  
(38)
%
$
1,590
  
$
7,774
  
(80)
%
Loss from discontinued operations, net of taxes
  
(193
)
  
(679
)
        
(193
)
  
(679
)
      
(175
)
  
(719
)
    
Net earnings attributable to the Company
$
11,025
  
$
17,410
  
(37)
%
  
$
11,025
  
$
17,410
  
(37)
%
$
1,415
  
$
7,055
  
(80)
%
                                                   
                                                   
Per-share amounts – earnings from continuing
                                                  
operations
                                                  
Diluted earnings per share
$
1.03
  
$
1.78
  
(42)
%
                                  
Basic earnings per share
$
1.03
  
$
1.79
  
(42)
%
                                  
                                                   
Per-share amounts – net earnings
                                                  
Diluted earnings per share
$
1.01
  
$
1.72
  
(41)
%
                                  
Basic earnings per share
$
1.01
  
$
1.72
  
(41)
%
                                  
                                                   
Total average equivalent shares
                                                  
Diluted shares
  
10,615
    
10,098
  
5
%
                                  
Basic shares
  
10,614
    
10,080
  
5
%
                                  
                                                   
Dividends declared per share
$
0.61
  
$
1.24
  
(51)
%
                                  
                                                   
 
(a)
Refers to the Industrial businesses of the Company including GECS on an equity basis.
 
Dollar amounts and share amounts in millions; per-share amounts in dollars; unaudited. Supplemental consolidating data are shown for "GE" and "GECS." Transactions between GE and GECS have been eliminated from the "Consolidated" columns. See Note 1 to the 2008 consolidated financial statements at www.ge.com/ar2008 for further information about consolidation matters.
 

 
6
 
GENERAL ELECTRIC COMPANY
Summary of Operating Segments (unaudited)
 
 
 
Three Months
Ended December 31
  
Twelve Months
Ended December 31
  
(Dollars in millions) 
  
2009
    
2008
    
V
%
  
2009
    
2008
    
V
%
                                     
Revenues
                                    
Energy Infrastructure
$
10,401
  
$
11,407
    
(9
)
$
37,134
  
$
38,571
    
(4
)
Technology Infrastructure
  
11,274
    
12,555
    
(10
)
  
42,474
    
46,316
    
(8
)
NBC Universal
  
4,268
    
4,430
    
(4
)
  
15,436
    
16,969
    
(9
)
Capital Finance
  
12,522
    
14,766
    
(15
)
  
50,622
    
67,008
    
(24
)
Consumer & Industrial
  
2,537
    
2,747
    
(8
)
  
9,703
    
11,737
    
(17
)
Total segment revenues
  
41,002
    
45,905
    
(11
)
  
155,369
    
180,601
    
(14
)
Corporate items and eliminations
  
436
    
308
    
42
    
1,414
    
1,914
    
(26
)
Consolidated revenues from continuing
                                    
operations
$
41,438
  
$
46,213
    
(10
)
$
156,783
  
$
182,515
    
(14
)
                                     
Segment profit (a)
                                    
Energy Infrastructure
$
2,196
  
$
2,006
    
9
  
$
6,842
  
$
6,080
    
13
  
Technology Infrastructure
  
2,105
    
2,495
    
(16
)
  
7,489
    
8,152
    
(8
)
NBC Universal
  
602
    
865
    
(30
)
  
2,264
    
3,131
    
(28
)
Capital Finance
  
336
    
1,030
    
(67
)
  
2,344
    
8,632
    
(73
)
Consumer & Industrial
  
136
    
36
    
F
    
400
    
365
    
10
  
Total segment profit
  
5,375
    
6,432
    
(16
)
  
19,339
    
26,360
    
(27
)
                                     
Corporate items and eliminations
  
(1,596
)
  
(1,401
)
  
(14
)
  
(3,904
)
  
(2,691
)
  
(45
)
GE interest and other financial charges
  
(402
)
  
(472
)
  
15
    
(1,478
)
  
(2,153
)
  
31
  
GE provision for income taxes
  
(346
)
  
(692
)
  
50
    
(2,739
)
  
(3,427
)
  
20
  
                                     
Earnings from continuing operations attributable
                                    
to the Company
  
3,031
    
3,867
    
(22
)
  
11,218
    
18,089
    
(38
)
                                     
Loss from discontinued operations, net of taxes,
                                    
attributable to the Company
  
(18
)
  
(145
)
  
88
    
(193
)
  
(679
)
  
72
  
                                     
Consolidated net earnings attributable to
                                    
the Company
$
3,013
  
$
3,722
    
(19
)
$
11,025
  
$
17,410
    
(37
)
                                     

(a)
Segment profit always excludes the effects of principal pension plans, results reported as discontinued operations, earnings attributable to noncontrolling interests and accounting changes, and may exclude matters such as charges for restructuring; rationalization and other similar expenses; in-process research and development and certain other acquisition-related charges and balances; technology and product development costs; certain gains and losses from dispositions; and litigation settlements or other charges, responsibility for which preceded the current management team.  Segment profit excludes or includes interest and other financial charges and income taxes according to how a particular segment's management is measured – excluded in determining segment profit, which we sometimes refer to as "operating profit," for Energy Infrastructure, Technology Infrastructure, NBC Universal and Consumer & Industrial; included in determining segment profit, which we sometimes refer to as "net earnings," for Capital Finance.
 
 
 
7
 
GENERAL ELECTRIC COMPANY
Summary of Operating Segments (unaudited)
Additional Information
 
 
 
Three Months
Ended December 31
  
Twelve Months
Ended December 31
  
(Dollars in millions) 
  
2009
    
2008
    
V
%
  
2009
    
2008
    
V
%
                                     
Energy Infrastructure
                                    
Revenues
$
10,401
  
$
11,407
    
(9
)
$
37,134
  
$
38,571
    
(4
)
                                     
Segment profit
$
2,196
  
$
2,006
    
9
  
$
6,842
  
$
6,080
    
13
  
                                     
Revenues
                                    
Energy (a) 
$
8,313
  
$
9,550
    
(13
)
$
30,185
  
$
31,833
    
(5
)
Oil & Gas
  
2,299
    
2,096
    
10
    
7,743
    
7,417
    
4
  
                                     
Segment profit
                                    
Energy (a) 
$
1,817
  
$
1,641
    
11
  
$
5,782
  
$
5,067
    
14
  
Oil & Gas
  
422
    
406
    
4
    
1,222
    
1,127
    
8
  
                                     
Technology Infrastructure
                                    
Revenues
$
11,274
  
$
12,555
    
(10
)
$
42,474
  
$
46,316
    
(8
)
                                     
Segment profit
$
2,105
  
$
2,495
    
(16
)
$
7,489
  
$
8,152
    
(8
)
                                     
Revenues
                                    
Aviation
$
4,750
  
$
5,155
    
(8
)
$
18,728
  
$
19,239
    
(3
)
Enterprise Solutions
  
1,222
    
1,178
    
4
    
3,957
    
4,710
    
(16
)
Healthcare
  
4,705
    
4,823
    
(2
)
  
16,015
    
17,392
    
(8
)
Transportation
  
617
    
1,410
    
(56
)
  
3,827
    
5,016
    
(24
)
                                     
Segment profit
                                    
Aviation
$
950
  
$
1,161
    
(18
)
$
3,923
  
$
3,684
    
6
  
Enterprise Solutions
  
409
    
188
    
F
    
704
    
691
    
2
  
Healthcare
  
911
    
942
    
(3
)
  
2,420
    
2,851
    
(15
)
Transportation
  
(157
)
  
212
    
U
    
473
    
962
    
(51
)
                                     
                                     
Capital Finance
                                    
Revenues
$
12,522
  
$
14,766
    
(15
)
$
50,622
  
$
67,008
    
(24
)
                                     
Segment profit
$
336
  
$
1,030
    
(67
)
$
2,344
  
$
8,632
    
(73
)
                                     
Revenues
                                    
Commercial Lending and Leasing (CLL) (b) 
$
5,004
  
$
6,146
    
(19
)
$
20,523
  
$
26,443
    
(22
)
Consumer (b) 
  
4,760
    
5,602
    
(15
)
  
19,268
    
25,311
    
(24
)
Real Estate
  
1,039
    
1,120
    
(7
)
  
4,009
    
6,646
    
(40
)
Energy Financial Services
  
500
    
687
    
(27
)
  
2,117
    
3,707
    
(43
)
GE Commercial Aviation Services (GECAS) 
  
1,219
    
1,211
    
1
    
4,705
    
4,901
    
(4
)
                                     
Segment profit
                                    
CLL (b) 
$
362
  
$
(200
)
  
F
  
$
987
  
$
1,785
    
(45
)
Consumer (b) 
  
259
    
832
    
(69
)
  
1,663
    
3,684
    
(55
)
Real Estate
  
(593
)
  
(60
)
  
U
    
(1,541
)
  
1,144
    
U
  
Energy Financial Services
  
31
    
219
    
(86
)
  
212
    
825
    
(74
)
GECAS
  
277
    
239
    
16
    
1,023
    
1,194
    
(14
)
 
                                    
 
(a)
 
During the first quarter of 2009, Water was combined with Energy. Prior-period amounts were reclassified to conform to the current-period’s presentation.
 
 
(b)
During the first quarter of 2009, we transferred Banque Artesia Nederland N.V. from CLL to Consumer. Prior-period amounts were reclassified to conform to the current-period’s presentation.
 
 
8
 
GENERAL ELECTRIC COMPANY
Condensed Statement of Financial Position
 
(Dollars in billions)
Consolidated
    
GE(a)
  
Financial
Services (GECS)
  
 
  
12/31/09
    
  
12/31/08
    
    
  
12/31/09
    
  
12/31/08
    
  
12/31/09
    
  
12/31/08
  
 Assets                                      
Cash & marketable securities
$
124.2
  
$
89.6
    
$
8.7
  
$
12.3
  
$
116.3
  
$
78.7
  
Receivables
  
16.5
    
21.4
      
9.8
    
15.1
    
–
    
–
  
Inventories
  
12.0
    
13.7
      
11.9
    
13.6
    
0.1
    
0.1
  
GECS financing receivables – net
  
329.2
    
365.2
      
–
    
–
    
336.9
    
372.5
  
Property, plant & equipment – net
  
69.2
    
78.5
      
12.5
    
14.4
    
56.7
    
64.1
  
Investment in GECS
  
–
    
–
      
70.8
    
53.3
    
–
    
–
  
Goodwill & intangible assets
  
77.5
    
96.7
      
45.1
    
67.8
    
32.4
    
29.0
  
Other assets
  
116.8
    
120.4
      
17.0
    
22.3
    
105.4
    
104.2
  
Assets of businesses held for sale
  
34.1
    
10.6
      
34.0
    
–
    
0.1
    
10.6
  
Assets of discontinued operations
  
1.5
    
1.7
      
0.1
    
0.1
    
1.5
    
1.7
  
                                       
Total assets
$
781.0
  
$
797.8
    
$
209.9
  
$
198.9
  
$
649.4
  
$
660.9
  
                                       
Liabilities and equity
                                      
Borrowings and bank deposits
$
510.2
  
$
523.8
    
$
12.2
  
$
12.2
  
$
500.3
  
$
514.6
  
Investment contracts, insurance liabilities and
                                      
insurance annuity benefits
  
31.6
    
34.0
      
–
    
–
    
32.0
    
34.4
  
Other liabilities
  
106.7
    
124.4
      
68.4
    
75.1
    
43.1
    
54.5
  
Liabilities of businesses held for sale
  
6.1
    
0.6
      
6.0
    
–
    
0.1
    
0.6
  
Liabilities of discontinued operations
  
1.3
    
1.4
      
0.2
    
0.2
    
1.1
    
1.2
  
GE shareowners' equity
  
117.3
    
104.7
      
117.3
    
104.7
    
70.8
    
53.3
  
Noncontrolling interests
  
7.8
    
8.9
      
5.8
    
6.7
    
2.0
    
2.3
  
                                       
Total liabilities and equity
$
781.0
  
$
797.8
    
$
209.9
  
$
198.9
  
$
649.4
  
$
660.9
  

(a)
 
Refers to the Industrial businesses of the Company including GECS on an equity basis.
 
 
December 31, 2009, information is unaudited.  Supplemental consolidating data are shown for "GE" and "GECS." Transactions between GE and GECS have been eliminated from the "Consolidated" columns. See Note 1 to the 2008 consolidated financial statements at www.ge.com/ar2008 for further information about consolidation matters.

9
GENERAL ELECTRIC COMPANY
Financial Measures That Supplement GAAP
 
We sometimes use information derived from consolidated financial information but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain of these data are considered “non-GAAP financial measures” under the U.S. Securities and Exchange Commission rules. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. We have referred to cash generated from GE Industrial operating activities (Industrial CFOA) for the twelve months ended December 31, 2009, compared with the twelve months ended December 31, 2008, and Industrial CFOA for the three months ended December 31, 2009. The reconciliations of these measures to the most comparable GAAP measures follows.
 
 
(Dollars in millions)
Twelve months
ended December 31
  
Growth in Industrial CFOA
  
2009
    
2008
    
V
%
                   
Cash from GE's operating activities as reported
$
16,581
  
$
19,086
    
(13)
%
Less dividends from GECS
  
–
    
2,351
        
Cash from GE's operating activities excluding dividends
                  
from GECS (Industrial CFOA) 
$
16,581
  
$
16,735
    
(1)
%
 
 
 
Three months ended
December 31, 2009
  
       
Cash from GE's operating activities as reported
$
5,116
  
Less dividends from GECS
  
–
  
Cash from GE's operating activities excluding dividends from
      
GECS (Industrial CFOA) 
$
5,116
  
 
 
We define “Industrial CFOA” as GE’s cash from operating activities less the amount of dividends received by GE from GECS. This includes the effects of intercompany transactions, including GE customer receivables sold to GECS; GECS services for trade receivables management and material procurement; buildings and equipment (including automobiles) leased by GE from GECS; information technology (IT) and other services sold to GECS by GE; aircraft engines manufactured by GE that are installed on aircraft purchased by GECS 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 GECS 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 Financial Services (GECS) 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.
 
 
 
10