EX-99 2 ge8k1q15ex99.htm
 
Exhibit 99

 
 
 

 
 
GENERAL ELECTRIC COMPANY
CONDENSED STATEMENT OF EARNINGS (LOSS) (UNAUDITED)
 
 
Consolidated
    
GE(a)
  
Financial Services (GECC)
Three months ended March 31
2015
2014
V%
    
2015
2014
  
V%
2015
2014
V%
                                           
Revenues and other income
                                          
Sales of goods and services
$
23,684
$
23,850
  
(1)%
    
$
23,840
$
24,011
  
(1)%
  
$
21
$
27
  
(22)%
Other income
  
142
  
196
          
52
  
161
        
-
  
-
    
GECC earnings (loss) from continuing operations
-
  
-
          
(12,544)
  
1,693
        
-
  
-
    
GECC revenues from services
  
5,530
  
9,502
          
-
  
-
        
5,961
  
9,858
    
   Total revenues and other income
  
29,356
  
33,548
  
(12)%
      
11,348
  
25,865
  
(56)%
    
5,982
  
9,885
  
(39)%
                                           
Costs and expenses
                                          
Cost of sales
  
18,166
  
18,522
          
18,325
  
18,685
        
18
  
25
    
Interest and other financial charges
  
1,930
  
2,141
          
389
  
365
        
1,651
  
1,887
    
Investment contracts, insurance losses and
                                          
   insurance annuity benefits
  
616
  
620
          
-
  
-
        
644
  
643
    
Provision for losses on financing receivables
  
4,859
  
984
          
-
  
-
        
4,859
  
984
    
Other costs and expenses
  
8,733
  
7,962
          
3,825
  
3,808
        
5,111
  
4,341
    
   Total costs and expenses
  
34,304
  
30,229
  
13%
      
22,539
  
22,858
  
(1)%
    
12,283
  
7,880
  
56%
Earnings (loss) from continuing operations
                                          
    before income taxes
  
(4,948)
  
3,319
  
U
      
(11,191)
  
3,007
  
U
    
(6,301)
  
2,005
  
U
Benefit (provision) for income taxes
  
(6,458)
  
(619)
          
(306)
  
(318)
        
(6,152)
  
(301)
    
Earnings (loss) from continuing operations
  
(11,406)
  
2,700
  
U
      
(11,497)
  
2,689
  
U
    
(12,453)
  
1,704
  
U
Earnings (loss) from discontinued
                                          
    operations, net of taxes
  
(2,202)
  
252
          
(2,202)
  
252
        
(2,201)
  
252
    
Net earnings (loss)
  
(13,608)
  
2,952
  
U
      
(13,699)
  
2,941
  
U
    
(14,654)
  
1,956
  
U
Less net earnings (loss) attributable to
                                          
    noncontrolling interests
  
(35)
  
(47)
          
(126)
  
(58)
        
91
  
11
    
Net earnings (loss) attributable to
                                          
   the Company
  
(13,573)
  
2,999
  
U
      
(13,573)
  
2,999
  
U
    
(14,745)
  
1,945
  
U
Preferred stock dividends declared
  
-
  
-
          
-
  
-
        
-
  
-
    
Net earnings (loss) attributable to
                                          
   GE common shareowners
$
(13,573)
$
2,999
  
U
    
$
(13,573)
$
2,999
  
U
  
$
(14,745)
$
1,945
  
U
Amounts attributable to GE common
                                          
shareowners:
                                          
   Earnings (loss) from continuing operations
$
(11,406)
$
2,700
  
U
    
$
(11,497)
$
2,689
  
U
  
$
(12,453)
$
1,704
  
U
   Less net earnings (loss) attributable
                                          
     to noncontrolling interests
  
(35)
  
(47)
          
(126)
  
(58)
        
91
  
11
    
   Earnings (loss) from continuing operations
                                          
     attributable to the Company
  
(11,371)
  
2,747
  
U
      
(11,371)
  
2,747
  
U
    
(12,544)
  
1,693
  
U
   GECC preferred stock dividends declared
  
-
  
-
          
-
  
-
        
-
  
-
    
   Earnings (loss) from continuing operations
                                          
      attributable to GE common shareowners
  
(11,371)
  
2,747
  
U
      
(11,371)
  
2,747
  
U
    
(12,544)
  
1,693
  
U
   Earnings (loss) from discontinued
                                          
      operations, net of taxes
  
(2,202)
  
252
          
(2,202)
  
252
        
(2,201)
  
252
    
Net earnings (loss) attributable to GE
                                          
   common shareowners
$
(13,573)
$
2,999
  
U
    
$
(13,573)
$
2,999
  
U
  
$
(14,745)
$
1,945
  
U
                                           
Per-share amounts - earnings (loss) from
                                          
   continuing operations
                                          
Diluted earnings (loss) per share
$
(1.13)
$
0.27
  
U
                              
Basic earnings (loss) per share
$
(1.13)
$
0.27
  
U
                              
Per-share amounts - net earnings (loss)
                                          
Diluted earnings (loss) per share
$
(1.35)
$
0.30
  
U
                              
Basic earnings (loss) per share
$
(1.35)
$
0.30
  
U
                              
Total average equivalent shares
                                          
Diluted earnings
  
10,067
  
10,123
  
(1)%
                              
Basic earnings
  
10,067
  
10,045
  
-
                              
Dividends declared per common share
$
0.23
$
0.22
  
5%
                              
                                           
Amounts attributable to GE
                                          
common shareowners:
                                          
Earnings (loss) from continuing operations
$
(11,371)
$
2,747
  
U
                              
Adjustment (net of tax): non-operating
                                          
   pension costs
  
452
  
342
                                  
Operating earnings (loss) (non-GAAP measure)
$
(10,919)
$
3,089
  
U
                              
Operating earnings (loss) - diluted
                                          
   earnings (loss) per share
$
(1.08)
$
0.30
  
U
                              
(a) Refers to the Industrial businesses of the Company including GECC on an equity basis.

Dollar amounts and share amounts in millions; per-share amounts in dollars. Supplemental data are shown for "GE" and "GECC." Transactions between GE and GECC have been eliminated from the "Consolidated" columns. See Note 1 to the 2014 consolidated financial statements at www.ge.com/ar2014 for further information about consolidation matters.

GENERAL ELECTRIC COMPANY
                
SUMMARY OF OPERATING SEGMENTS (UNAUDITED)
                
                 
 
Three months ended March 31
  
(Dollars in millions)
2015
  
2014
  
V%
  
                 
Revenues(a)
                
   Power & Water
$
5,716
  
$
5,509
  
4%
  
   Oil & Gas
  
3,961
    
4,308
  
(8)%
  
   Energy Management
  
1,685
    
1,672
  
1%
  
   Aviation
  
5,674
    
5,778
  
(2)%
  
   Healthcare
  
4,075
    
4,198
  
(3)%
  
   Transportation
  
1,308
    
1,227
  
7%
  
   Appliances & Lighting
  
1,941
    
1,857
  
5%
  
   Total industrial segment revenues
  
24,360
    
24,549
  
(1)%
  
   GE Capital
  
5,982
    
9,885
  
(39)%
  
   Total segment revenues
  
30,342
    
34,434
  
(12)%
  
   Corporate items and eliminations(a)
  
(986)
    
(886)
  
(11)%
  
Consolidated revenues and other income
                
  from continuing operations
$
29,356
  
$
33,548
  
(12)%
  
                 
Segment profit (loss)(a)
                
   Power & Water
$
871
  
$
888
  
(2)%
  
   Oil & Gas
  
432
    
446
  
(3)%
  
   Energy Management
  
28
    
5
  
F
  
   Aviation
  
1,314
    
1,115
  
18%
  
   Healthcare
  
587
    
570
  
3%
  
   Transportation
  
225
    
202
  
11%
  
   Appliances & Lighting
  
103
    
53
  
94%
  
   Total industrial segment profit
  
3,560
    
3,279
  
9%
  
   GE Capital
  
(12,544)
    
1,693
  
U
  
   Total segment profit (loss)
  
(8,984)
    
4,972
  
U
  
Corporate items and eliminations(a)
  
(1,692)
    
(1,542)
  
(10)%
  
GE interest and other financial charges
  
(389)
    
(365)
  
(7)%
  
GE provision for income taxes
  
(306)
    
(318)
  
4%
  
Earnings (loss) from continuing operations
                
   attributable to the Company
  
(11,371)
    
2,747
  
U
  
Earnings (loss) from discontinued operations,
                
   net of taxes
  
(2,202)
    
252
  
U
  
Consolidated net earnings (loss) attributable to
                
   the Company
$
(13,573)
  
$
2,999
  
U
  
                 

(a)
Segment revenues includes both revenues and other income related to the segment. Segment profit excludes results reported as discontinued operations, the portion of earnings attributable to noncontrolling interests of consolidated subsidiaries, and accounting changes. 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 Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation and Appliances & Lighting; included in determining segment profit, which we sometimes refer to as "net earnings," for GE Capital. Certain corporate costs, such as shared services, employee benefits and information technology are allocated to our segments based on usage. A portion of the remaining corporate costs are allocated based on each segment's relative net cost of operations. Total industrial segment revenues and profit include the sum of our seven industrial reporting segments without giving effect to the elimination of transactions among such segments. Total segment revenues and profit include the sum of our seven industrial segments and one financial services segment, without giving effect to the elimination of transactions among such segments.  We believe that this provides investors with a view as to the results of all of our segments, without inter-segment eliminations and corporate items.

GENERAL ELECTRIC COMPANY
SUMMARY OF OPERATING SEGMENTS
ADDITIONAL INFORMATION (UNAUDITED)
                               
     
Three months ended March 31
(Dollars in millions)
            
2015
  
2014
  
V%
                               
GE Capital
                              
                               
  Revenues
                
$
5,982
  
$
9,885
  
(39)%
                               
  Segment profit (loss)
                
$
(12,544)
  
$
1,693
  
U
                               
Revenues
                              
Commercial Lending & Leasing
                
$
1,556
  
$
3,582
  
(57)%
Consumer
                  
2,058
    
3,602
  
(43)%
Energy Financial Services
                  
285
    
469
  
(39)%
GECAS
                  
1,282
    
1,345
  
(5)%
                               
                               
Segment profit (loss)
                              
Commercial Lending & Leasing
                
$
(3,847)
  
$
564
  
U
Consumer
                  
(2,775)
    
786
  
U
Energy Financial Services
                  
35
    
153
  
(77)%
GECAS
                  
307
    
352
  
(13)%
                               
 
GENERAL ELECTRIC COMPANY
                                      
CONDENSED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
  
   
                                       
 
Consolidated
    
GE(a)
  
Financial Services (GECC)
  
 
March 31,
  
December 31,
    
March 31,
  
December 31,
  
March 31,
  
December 31,
  
(Dollars in billions)
2015
  
2014
    
2015
  
2014
  
2015
  
2014
  
                           
Assets
                                      
Cash & marketable securities
$
129.0
  
$
137.6
    
$
13.6
  
$
16.0
  
$
115.5
  
$
121.6
  
Receivables
  
20.5
    
23.2
      
10.8
    
11.5
    
-
    
-
  
Inventories
  
17.8
    
17.7
      
17.8
    
17.6
    
-
    
0.1
  
GECC financing receivables - net
  
68.0
    
205.2
      
-
    
-
    
78.1
    
217.4
  
Property, plant & equipment - net
  
61.2
    
66.2
      
16.5
    
17.2
    
45.1
    
49.4
  
Investment in GECC
  
-
    
-
      
65.8
    
82.5
    
-
    
-
  
Goodwill & intangible assets
  
83.3
    
90.1
      
62.4
    
64.5
    
20.9
    
25.6
  
Other assets
  
57.0
    
62.1
      
25.4
    
24.8
    
39.0
    
45.2
  
Financing receivables held for sale
  
93.0
    
1.8
      
-
    
-
    
93.0
    
1.8
  
Assets of businesses held for sale
  
56.5
    
6.3
      
2.9
    
2.8
    
53.6
    
3.5
  
Assets of discontinued operations
  
31.3
    
36.8
      
-
    
-
    
31.3
    
36.8
  
Total assets
$
617.6
  
$
647.0
    
$
215.2
  
$
236.9
  
$
476.5
  
$
501.4
  
                                       
Liabilities and equity
                                      
Borrowings and bank deposits
$
351.4
  
$
364.5
    
$
16.3
  
$
16.3
  
$
335.9
  
$
349.0
  
Investment contracts, insurance liabilities and
                                      
insurance annuity benefits
  
27.6
    
27.6
      
-
    
-
    
28.2
    
28.0
  
Other liabilities
  
111.8
    
112.3
      
87.9
    
90.0
    
30.4
    
29.5
  
Liabilities of businesses held for sale
  
7.4
    
3.4
      
1.5
    
1.5
    
6.3
    
2.4
  
Liabilities of discontinued operations
  
2.1
    
2.3
      
0.1
    
0.1
    
2.0
    
2.1
  
GE Shareowners' equity
  
108.6
    
128.2
      
108.6
    
128.2
    
70.7
    
87.5
  
Noncontrolling interests
  
8.7
    
8.7
      
0.8
    
0.8
    
3.0
    
2.9
  
Total liabilities and equity
$
617.6
  
$
647.0
    
$
215.2
  
$
236.9
  
$
476.5
  
$
501.4
  
                                       
(a) Refers to the Industrial businesses of the Company including GECC on an equity basis.

Supplemental data are shown for "GE" and "GECC." Transactions between GE and GECC have been eliminated from the "Consolidated" columns. See Note 1 to the 2014 consolidated financial statements at www.ge.com/ar2014 for further information about consolidation matters.



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:
Operating earnings (loss) and operating earnings (loss) per share (EPS) – excluding the GE Capital exit impacts
Industrial operating earnings and EPS and GE Capital operating earnings (loss) and EPS
Industrial operating earnings and EPS and GE Capital operating earnings (loss) and EPS – excluding the GE Capital exit impacts
Earnings (loss) from continuing operations and EPS – excluding the GE Capital exit impacts
Net earnings (loss) attributable to GE and EPS – excluding the GE Capital exit impacts
Consolidated and GECC revenues – excluding the GE Capital exit impacts
Industrial segment organic revenue growth
Oil & Gas organic revenue and operating profit growth
Industrial cash flows from operating activities (Industrial CFOA)
GE Capital ending net investment (ENI), excluding liquidity
GECC Tier 1 Common Ratio Estimate

The reconciliations of these measures to the most comparable GAAP measures follow.
OPERATING EARNINGS (LOSS) AND EPS - EXCLUDING THE GE CAPITAL EXIT IMPACTS
    
         
     
Three months ended March 31
(Dollars in millions; except per share amounts)
            
2015
  
2014
  
V%
                               
Earnings (loss) from continuing operations attributable to GE
      
$
(11,371)
  
$
2,747
  
U
Adjustment (net of tax): non-operating pension costs
                  
452
    
342
    
Operating earnings (loss)
                  
(10,919)
    
3,089
    
Adjustment (net of tax) - GE Capital exit impacts:
                              
   GE Capital Day 1 charge
                  
13,764
    
-
    
   Real Estate in discontinued operations
                  
72
    
240
    
   Forgone tax benefit primarily associated with ANZ Consumer disposition
        
231
    
-
    
Earnings (loss) from continuing operations
                              
   attributable to GE, excluding the GE Capital exit impacts
                  
3,148
    
3,329
  
(5)%
                               
Earnings (loss) per share – diluted(a)
                              
Continuing earnings (loss) per share
                
$
(1.13)
  
$
0.27
  
U
Adjustment (net of tax): non-operating pension costs
                  
0.04
    
0.03
    
Operating earnings (loss) per share
                  
(1.08)
    
0.30
  
U
Adjustment (net of tax): GE Capital exit impacts
                  
1.39
    
0.02
    
Operating earnings (loss) per share,
                              
   excluding the GE Capital exit impacts
                
$
0.31
  
$
0.33
  
(6)%
                               
(a)
Earnings (loss)-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.



 
INDUSTRIAL OPERATING EARNINGS AND EPS AND GE CAPITAL OPERATING EARNINGS (LOSS) AND EPS
    
                               
       
Three months ended March 31
(Dollars in millions; except per share amounts)
                  
2015
    
2014
  
V%
                               
Earnings (loss) from continuing operations attributable to GE
      
$
(11,371)
  
$
2,747
    
Adjustment (net of tax): non-operating pension costs
                  
452
    
342
    
Operating earnings (loss)
                  
(10,919)
    
3,089
  
U
                               
Less GECC earnings (loss) from continuing operations
                              
   attributable to GE common shareowners
                  
(12,544)
    
1,693
    
Operating earnings (loss) excluding GECC earnings from continuing
                              
   operations attributable to GE
                              
     (Industrial operating earnings)
                
$
1,625
  
$
1,396
  
16%
Operating earnings(loss) less Industrial operating
                              
   earnings (GE Capital operating earnings (loss))
                  
(12,544)
    
1,693
  
U
Operating earnings (loss)
                  
(10,919)
    
3,089
  
U
   
                              
Earnings (loss) per share - diluted (a)
                              
Operating earnings (loss) per share attributable
                              
   to Industrial (Industrial operating EPS)
                
$
0.16
  
$
0.14
  
14%
Operating earnings (loss) per share attributable
                              
   to GE Capital (GE Capital operating EPS)
                  
(1.25)
    
0.17
  
U
Total operating earnings (loss) per share
                
$
(1.08)
  
$
0.30
  
U
                               
(a)
Earnings (loss)-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.
INDUSTRIAL OPERATING EARNINGS AND EPS AND GE CAPITAL OPERATING EARNINGS (LOSS) AND EPS -
EXCLUDING THE GE CAPITAL EXIT IMPACTS
                     
       
Three months ended March 31
(Dollars in millions; except per share amounts)
        
2015
    
2014
  
V%
                     
Earnings (loss)from continuing operations attributable to GE
      
$
(11,371)
  
$
2,747
    
Adjustment (net of tax): non-operating pension costs
        
452
    
342
    
Operating earnings (loss)
        
(10,919)
    
3,089
  
U
Adjustment (net of tax) - GE Capital exit impacts:
                    
   GE Capital Day 1 charge
        
13,764
    
-
    
   Real Estate in discontinued operations
        
72
    
240
    
   Forgone tax benefit primarily associated with ANZ Consumer disposition
        
231
    
-
    
Operating earnings (loss) excluding the GE Capital exit impacts
        
3,148
    
3,329
  
(5)%
                     
GECC earnings (loss) from continuing operations attributable to GE
        
(12,544)
    
1,693
    
Adjustment (net of tax): Real Estate in discontinued operations
        
-
    
240
    
GECC earnings (loss) from continuing operations
                    
   attributable to GE common shareowners (2014 as reported)
        
(12,544)
    
1,933
    
                     
Operating earnings (loss) excluding the GE Capital exit impacts and GECC earnings from
                    
     continuing operations attributable to GE (Industrial operating earnings)
      
$
1,625
  
$
1,396
  
16%
Operating earnings (loss) excluding the GE Capital exit impacts, less Industrial operating earnings
                    
     (GE Capital operating earnings excluding the GE Capital exit impacts)
        
1,523
    
1,933
  
(21)%
Operating earnings (loss) excluding the GE Capital exit impacts
        
3,148
    
3,329
  
(5)%
   
                    
Earnings (loss) per share - diluted(a)
                    
Operating earnings (loss) per share attributable to Industrial
                    
   (Industrial operating EPS)
      
$
0.16
  
$
0.14
  
14%
Operating earnings (loss) per share attributable to GE Capital
                    
   (GE Capital operating EPS excluding the GE Capital exit impacts)
        
0.15
    
0.19
  
(21)%
Total operating EPS excluding the GE Capital exit impacts
      
$
0.31
  
$
0.33
  
(6)%
                     
(a)
Earnings (loss)-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.

Operating earnings (loss) excludes non-service related pension costs of our principal pension plans comprising interest cost, expected return on plan assets and amortization of actuarial gains/losses. The service cost, prior service cost and curtailment loss components of our principal pension plans are included in operating earnings. We believe that these components of pension cost better reflect the ongoing service-related costs of providing pension benefits to our employees. As such, we believe that our measure of operating earnings (loss) provides management and investors with a useful measure of the operational results of our business. Other components of GAAP pension cost are mainly driven by capital allocation decisions and market performance, and we manage these separately from the operational performance of our businesses. Neither GAAP nor operating pension costs are necessarily indicative of the current or future cash flow requirements related to our pension plan. We also believe that this measure, considered along with the corresponding GAAP measure, provides management and investors with additional information for comparison of our operating results to the operating results of other companies.

We believe that presenting operating earnings and operating EPS separately for our industrial and financial services businesses also provides management and investors with useful information about the relative size of our industrial and financial services businesses in relation to the total company. We also believe that operating earnings and EPS excluding the effects of the GE Capital exit impacts, which include charges recorded in the first quarter of 2015, the classification of certain businesses as discontinued operations and forgone tax benefits, are meaningful measures because they increase the comparability of period-to-period results.
EARNINGS (LOSS) FROM CONTINUING OPERATIONS AND EPS - EXCLUDING THE GE CAPITAL EXIT IMPACTS
    
         
     
Three months ended March 31
(Dollars in millions; except per share amounts)
            
2015
  
2014
  
V%
                               
Earnings (loss) from continuing operations attributable to GE
      
$
(11,371)
  
$
2,747
  
U
Adjustment (net of tax) - GE Capital exit impacts:
                              
   GE Capital Day 1 charge
                  
13,764
    
-
    
   Real Estate in discontinued operations
                  
72
    
240
    
   Forgone tax benefit primarily associated with ANZ Consumer disposition
        
231
    
-
    
                               
Earnings (loss) from continuing operations attributable to GE, excluding the GE Capital exit impacts
    
2,696
    
2,987
  
(10)%
                               
Earnings (loss) per share – diluted(a)
                              
Continuing earnings (loss) per share
                
$
(1.13)
  
$
0.27
  
U
Adjustment (net of tax): GE Capital exit impacts
                  
1.39
    
0.02
    
Earnings (loss) per share, excluding the GE Capital exit impacts
                
$
0.27
  
$
0.29
  
(7)%
                               
(a)
Earnings (loss)-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.



NET EARNINGS (LOSS) ATTRIBUTABLE TO GE AND EPS - EXCLUDING THE GE CAPITAL EXIT IMPACTS
    
         
     
Three months ended March 31
(Dollars in millions; except per share amounts)
            
2015
  
2014
  
V%
                               
Net earnings (loss) from continuing operations attributable to GE
      
$
(13,573)
  
$
2,999
  
U
Adjustment (net of tax) - GE Capital exit impacts:
                              
   GE Capital Day 1 charge
                  
13,764
    
-
    
   Real Estate in discontinued operations
                  
72
    
-
    
   Forgone tax benefit primarily associated with ANZ Consumer disposition
        
231
    
-
    
   GE Capital Day 1 charge in discontinued operations
        
2,284
    
-
    
Net earnings (loss) from continuing operations attributable to GE, excluding the GE Capital exit impacts
  
2,778
    
2,999
  
(7)%
                               
Earnings (loss) per share – diluted(a)
                              
Continuing earnings (loss) per share
                
$
(1.35)
  
$
0.30
  
U
Adjustment (net of tax): GE Capital exit impacts
                  
1.61
    
-
    
Net earnings (loss) per share, excluding the GE Capital exit impacts
                
$
0.27
  
$
0.30
  
(10)%
                               
(a)
Earnings (loss)-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.

We have presented our earnings from continuing operations and EPS and net earnings and EPS excluding the GE Capital exit impacts, which include charges recorded in the first quarter of 2015, the classification of certain businesses as discontinued operations and forgone tax benefits. We believe that earnings from continuing operations and EPS and net earnings and EPS excluding the GE Capital exit impacts are meaningful measures because they increase the comparability of period-to-period results.

CONSOLIDATED AND GECC REVENUES - EXCLUDING THE GE CAPITAL EXIT IMPACTS
               
 
Three Months Ended March 31
(Dollars in millions)
  
2015
    
2014
  
V%
               
Consolidated revenues from continuing operations
  
29,356
    
33,548
  
(12)%
Adjustment: GE Capital Day 1 charge
  
3,249
    
-
    
Adjustment: Real Estate in discontinued operations
  
499
    
630
    
Consolidated revenues excluding the GE Capital exit impacts
$
33,104
  
$
34,178
  
(3)%
               
GECC revenues from continuing operations
  
5,982
    
9,885
  
(39)%
Adjustment: GE Capital Day 1 charge
  
3,249
    
-
    
Adjustment: Real Estate in discontinued operations
  
499
    
630
    
Revenues excluding the GE Capital exit impacts
$
9,730
  
$
10,515
  
(7)%
               

We have presented our consolidated revenues and GECC revenues excluding the GE Capital exit impacts, which include certain charges recorded in the first quarter of 2015 and the classification of certain businesses as discontinued operations. We believe that revenues adjusted for the GE Capital exit impacts are meaningful measures because they increase the comparability of period-to-period results.

INDUSTRIAL SEGMENT ORGANIC REVENUE GROWTH
               
 
Three Months Ended March 31
(Dollars in millions)
  
2015
    
2014
  
V%
               
Segment revenues:
              
    Power & Water
$
5,716
  
$
5,509
    
    Oil & Gas
  
3,961
    
4,308
    
    Energy Management
  
1,685
    
1,672
    
    Aviation
  
5,674
    
5,778
    
    Healthcare
  
4,075
    
4,198
    
    Transportation
  
1,308
    
1,227
    
    Appliances & Lighting
  
1,941
    
1,857
    
Industrial segment revenues
  
24,360
    
24,549
  
(1)%
Less the effects of:
              
     Acquisitions, business dispositions (other than
              
     dispositions of businesses acquired for investment)
              
     and currency exchange rates
  
(769)
    
202
    
Industrial segment revenues excluding effects of acquisitions,
              
     business dispositions (other than dispositions of
              
     businesses acquired for investment) and currency
              
     exchange rates (Industrial segment organic revenues)
$
25,129
  
$
24,347
  
3%
               

Organic revenue growth measures revenue excluding the effects of acquisitions, business dispositions and currency exchange rates. We believe that this measure provides management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and currency exchange, which activities are subject to volatility and can obscure underlying trends. We also believe that presenting organic revenue growth separately for our industrial businesses provides management and investors with useful information about the trends of our industrial businesses and enables a more direct comparison to other non-financial businesses and companies. Management recognizes that the term "organic revenue growth" may be interpreted differently by other companies and under different circumstances. Although this may have an effect on comparability of absolute percentage growth from company to company, we believe that these measures are useful in assessing trends of the respective businesses or companies and may therefore be a useful tool in assessing period-to-period performance trends.
OIL & GAS ORGANIC REVENUE GROWTH
                 
 
Three Months Ended March 31
(Dollars in millions)
  
2015
    
2014
  
V%
  
                 
Oil & Gas segment revenue
$
3,961
  
$
4,308
  
(8)%
  
Less the effects of:
                
     Acquisitions, business dispositions (other than
                
     dispositions of businesses acquired for investment)
                
     and currency exchange rates
  
(239)
    
121
      
Oil & Gas revenues excluding effects of acquisitions,
                
     business dispositions (other than dispositions of
                
     businesses acquired for investment) and currency
                
     exchange rates (Oil & Gas organic revenue)
$
4,200
  
$
4,187
  
-%
  
                 

OIL & GAS ORGANIC OPERATING PROFIT GROWTH
                 
 
Three Months Ended March 31
(Dollars in millions)
  
2015
    
2014
  
V%
  
                 
Oil & Gas segment profit
$
432
  
$
446
  
(3)%
  
Less the effects of:
                
     Acquisitions, business dispositions (other than
                
     dispositions of businesses acquired for investment)
                
     and currency exchange rates
  
(64)
    
-
      
Oil & Gas segment profit excluding effects of acquisitions,
                
     business dispositions (other than dispositions of
                
     businesses acquired for investment) and currency
                
     exchange rates (Oil & Gas organic operating profit)
$
496
  
$
446
  
11%
  
                 

Organic revenue and operating profit growth measure revenue and profit excluding the effects of acquisitions, business dispositions and currency exchange rates. We believe that these measures provide management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and currency exchange, which activities are subject to volatility and can obscure underlying trends. Management recognizes that the terms "organic revenue growth" and "organic operating profit growth" may be interpreted differently by other companies and under different circumstances. Although this may have an effect on comparability of absolute percentage growth from company to company, we believe that these measures are useful in assessing trends of the Oil & Gas business and may therefore be a useful tool in assessing period-to-period performance trends.
INDUSTRIAL CASH FLOWS FROM OPERATING ACTIVITIES (INDUSTRIAL CFOA)
               
 
Three months ended March 31
(Dollars in millions)
  
2015
    
2014
  
V%
               
Cash from GE's operating activities (continuing operations), as reported
$
1,340
  
$
1,750
  
(23)%
Less dividends from GECC
  
450
    
500
    
Cash from GE's operating activities (continuing operations),
              
   excluding dividends from GECC (Industrial CFOA)
$
890
  
$
1,250
  
(29)%
               

We define "Industrial CFOA" as GE's cash from operating activities (continuing operations) less the amount of dividends received by GE from GECC. This includes the effects of intercompany transactions, including GE customer receivables sold to GECC; GECC services for trade receivables management and material procurement; buildings and equipment (including automobiles) leased by GE from GECC; information technology (IT) and other services sold to GECC by GE; aircraft engines manufactured by GE that are installed on aircraft purchased by GECC 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 GECC 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 GECC 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.

GE CAPITAL ENDING NET INVESTMENT (ENI), EXCLUDING LIQUIDITY
     
(Dollars in billions)
March 31, 2015
  
December 31, 2014(b)
  
March 31, 2014(b)
                 
GECC total assets
$
476.5
  
$
500.2
  
$
510.4
   Less assets of discontinued operations
  
31.3
    
1.2
    
1.4
   Less non-interest bearing liabilities
  
66.0
    
60.5
    
60.0
GE Capital ENI
  
379.2
    
438.5
    
449.0
   Less liquidity(a)
  
76.4
    
75.5
    
75.3
GE Capital ENI, excluding liquidity
$
302.8
  
$
363.0
  
$
373.7
                 
Percentage variance to March 31, 2014
  
(19)%
            
                 
(a)
Liquidity includes cash and equivalents and $2.8 billion and $1.2 billion of debt obligations of the U.S. Treasury at March 31, 2015 and December 31, 2014, respectively.
(b)
As originally reported.

We use ENI to measure the size of our GE Capital segment. We believe that this measure is a useful indicator of the capital (debt or equity) required to fund a business as it adjusts for non-interest bearing current liabilities generated in the normal course of business that do not require a capital outlay. We also believe that by excluding liquidity, we provide a meaningful measure of assets requiring capital to fund our GE Capital segment as a substantial amount of liquidity resulted from debt issuances to pre-fund future debt maturities and will not be used to fund additional assets. Liquidity consists of cash and equivalents and certain debt obligations of the U.S. Treasury. As a general matter, investments included in liquidity are expected to be highly liquid, giving us the ability to readily convert them to cash. Providing this measure will help investors measure how we are performing against our previously communicated goal to reduce the size of our financial services segment.



GECC TIER 1 COMMON RATIO ESTIMATE(a)
       
(Dollars in billions)
Three months ended March 31, 2015
           
Shareowners' equity(b)
      
$
70.7
Adjustments:
          
   Preferred equity
        
(4.9)
   Goodwill and other intangible assets
        
(22.0)
   Other additions (deductions)
        
1.2
GECC Tier 1 common
        
45.0
Estimated risk-weighted assets(c)
        
422.8
GECC Tier 1 common ratio estimate
        
10.6%
           
(a)
Includes discontinued operations.
(b)
Total equity excluding noncontrolling interests.
(c)
Based on Basel 3 risk-weighted assets estimates.

The GECC Tier 1 common ratio estimate is the ratio of Tier 1 common equity to total risk-weighted assets as calculated based on our interpretation of the standardized U.S. Basel 3 capital rules on a transitional basis. We are not required by regulators to disclose this capital ratio, and therefore this capital ratio is considered a non-GAAP financial measure. We believe that this capital ratio is a useful measure to investors because it is widely used by analysts and regulators to assess the capital position of financial services companies.