EX-99 4 ge8k113015ex99.htm

EXHIBIT 99
GENERAL ELECTRIC COMPANY
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

As reported by GE on November 17, 2015, GE completed the split-off of Synchrony Financial ("Synchrony") which was reported in GECC's Consumer business. On November 30, 2015, the rest of GECC's Consumer business met the criteria to be classified as held for sale.  The Consumer business, including the results of Synchrony, will be reported as discontinued operations beginning in the fourth quarter of 2015.

The following unaudited pro forma condensed consolidated statement of financial position of GE as of September 30, 2015 is presented as if the classification of the Consumer business as discontinued operations, as described in the notes to these unaudited pro forma condensed consolidated financial statements, had occurred at September 30, 2015. The unaudited pro forma condensed consolidated statements of earnings for the nine months ended September 30, 2015 and 2014, and each of the years ended December 31, 2014, 2013 and 2012, reflect the classification of Consumer as discontinued operations. The unaudited pro forma condensed consolidated financial statements are based on the historical financial statements of GE for each period presented and in the opinion of GE management, all adjustments and disclosures necessary for a fair presentation of the pro forma data have been made.

These unaudited pro forma condensed consolidated financial statements are presented for illustrative purposes only and are not necessarily indicative of the results of operations or financial condition that would have been achieved had the classification of the Consumer business to discontinued operations been completed as of the dates indicated or of the results that may be obtained in the future. These unaudited pro forma condensed consolidated financial statements and the notes thereto should be read together with the following:

·
GE's audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2014, and Management's Discussion and Analysis included in GE's Annual Report on Form 10-K for the year ended December 31, 2014 as updated by GE's Current Report on Form 8-K filed August 7, 2015.
·
GE's unaudited consolidated financial statements and the notes thereto as of and for the nine months ended September 30, 2015, and Management's Discussion and Analysis included in GE's Quarterly Report on Form 10-Q for the quarter ended September 30, 2015.
·
GE's Current Report on Form 8-K filed November 23, 2015.


1

                 
General Electric Company
Unaudited Pro Forma Condensed Consolidated Statement of Financial Position
At September 30, 2015
                 
                 
   
General
            
   
Electric
            
   
Company
    
Consumer
      
(In millions, except share amounts)
  
Historical
    
Adjustment
    
Pro Forma
Assets
                
Cash and equivalents
$
99,086
  
$
(15,219)
  
$
83,867
Investment securities
  
36,933
    
(4,462)
    
32,471
Current receivables
  
22,332
    
-
    
22,332
Inventories
  
19,285
    
-
    
19,285
Financing receivables – net
  
72,353
    
(60,149)
    
12,204
Other GECC receivables
  
6,280
    
(405)
    
5,875
Property, plant and equipment – net
  
50,704
    
(265)
    
50,438
Goodwill
  
61,660
    
(9,088)
    
52,572
Other intangible assets – net
  
13,618
    
(684)
    
12,934
All other assets
  
45,793
    
(2,977)
    
42,817
Financing receivables held for sale
  
22,832
    
(22,713)
    
119
Deferred income taxes
  
176
    
918
    
1,094
Assets of businesses held for sale
  
8,309
    
(4,917)
    
3,392
Assets of discontinued operations
  
121,949
    
121,533
    
243,482
Total assets
$
581,310
  
$
1,572
  
$
582,882
                 
Liabilities and equity
                
Short-term borrowings
$
46,495
  
$
(189)
  
$
46,306
Accounts payable, principally trade accounts
  
11,762
    
(400)
    
11,362
Progress collections and price adjustments accrued
  
11,247
    
-
    
11,247
Dividends payable
  
2,324
    
-
    
2,324
Other GE current liabilities
  
12,624
    
-
    
12,624
Non-recourse borrowings of consolidated securitization entities
  
16,225
    
(13,640)
    
2,585
Bank deposits
  
48,656
    
(48,656)
    
-
Long-term borrowings
  
180,011
    
(10,872)
    
169,138
Investment contracts, insurance liabilities and insurance annuity benefits
  
26,135
    
(28)
    
26,108
All other liabilities
  
60,685
    
(2,527)
    
58,158
Liabilities of businesses held for sale
  
1,384
    
(260)
    
1,124
Liabilities of discontinued operations
  
43,768
    
78,144
    
121,912
Total liabilities
  
461,317
    
1,572
    
462,889
                 
Common stock (10,109,239,000 shares outstanding)
  
702
    
-
    
702
Accumulated other comprehensive income (loss) – net attributable to GE
                
   Investment securities
  
561
    
-
    
561
   Currency translation adjustments
  
(5,281)
    
-
    
(5,281)
   Cash flow hedges
  
(174)
    
-
    
(174)
   Benefit plans
  
(12,089)
    
-
    
(12,089)
Other capital
  
32,760
    
-
    
32,760
Retained earnings
  
135,932
    
-
    
135,932
Less common stock held in treasury
  
(41,207)
    
-
    
(41,207)
Total GE shareowners' equity
  
111,204
    
-
    
111,204
Noncontrolling interests
  
8,788
    
-
    
8,788
Total equity
  
119,993
    
-
    
119,993
Total liabilities and equity
$
581,310
  
$
1,572
  
$
582,882
                 

Amounts may not add due to rounding.
The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.



2

General Electric Company
Unaudited Pro Forma Condensed Consolidated Statement of Earnings
For the nine months ended September 30, 2015
                 
                 
   
General
            
   
Electric
            
   
Company
    
Consumer
      
(In millions; per-share amounts in dollars)
  
Historical
    
Adjustment
    
Pro Forma
                 
Revenues and other income
                
Sales of goods
$
53,003
  
$
-
  
$
53,003
Sales of services
  
22,263
    
-
    
22,263
Other income
  
1,092
    
-
    
1,092
GECC revenues from services
  
16,373
    
(9,237)
    
7,136
Total revenues and other income
  
92,731
    
(9,237)
    
83,494
                 
Costs and expenses
                
Costs of goods sold
  
42,748
    
-
    
42,748
Cost of services sold
  
14,690
    
-
    
14,690
Interest and other financial charges
  
3,976
    
(1,748)
    
2,228
Investment contracts, insurance losses and insurance annuity benefits
  
1,952
    
(10)
    
1,942
Provision for losses on financing receivables
  
4,636
    
(4,596)
    
40
Other costs and expenses
  
19,125
    
(3,562)
    
15,563
Total costs and expenses
  
87,127
    
(9,915)
    
77,212
                 
Earnings (loss) from continuing operations
                
     before income taxes
  
5,604
    
679
    
6,282
Benefit (provision) for income taxes
  
(7,466)
    
238
    
(7,227)
                 
Earnings (loss) from continuing operations
  
(1,862)
    
917
    
(945)
Less net earnings (loss) attributable to noncontrolling interests
  
229
    
(270)
    
(41)
Earnings (loss) from continuing operations attributable
                
   to GE common shareowners
$
(2,091)
  
$
1,187
  
$
(904)
                 
Per share amounts
                
   Earnings (loss) from continuing operations
                
      Diluted earnings (loss) per share
$
(0.21)
        
$
(0.09)
      Basic earnings (loss) per share
$
(0.21)
        
$
(0.09)
                 
Average equivalent shares
                
   Diluted
  
10,085
          
10,085
   Basic
  
10,085
          
10,085
                 

Amounts may not add due to rounding.
The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.



3

General Electric Company
Unaudited Pro Forma Condensed Consolidated Statement of Earnings
For the nine months ended September 30, 2014
                 
                 
   
General
            
   
Electric
            
   
Company
    
Consumer
      
(In millions; per-share amounts in dollars)
  
Historical
    
Adjustment
    
Pro Forma
                 
Revenues and other income
                
Sales of goods
$
53,894
  
$
-
  
$
53,894
Sales of services
  
21,945
    
-
    
21,945
Other income
  
792
    
-
    
792
GECC revenues from services
  
17,964
    
(10,822)
    
7,142
Total revenues and other income
  
94,595
    
(10,822)
    
83,773
                 
Costs and expenses
                
Costs of goods sold
  
43,600
    
-
    
43,600
Cost of services sold
  
14,668
    
-
    
14,668
Interest and other financial charges
  
3,975
    
(1,898)
    
2,077
Investment contracts, insurance losses and insurance annuity benefits
  
1,940
    
(13)
    
1,927
Provision for losses on financing receivables
  
2,693
    
(2,663)
    
29
Other costs and expenses
  
18,744
    
(3,659)
    
15,087
Total costs and expenses
  
85,620
    
(8,233)
    
77,388
                 
Earnings (loss) from continuing operations
                
     before income taxes
  
8,975
    
(2,588)
    
6,385
Benefit (provision) for income taxes
  
(1,034)
    
449
    
(585)
                 
Earnings (loss) from continuing operations
  
7,941
    
(2,139)
    
5,800
Less net earnings (loss) attributable to noncontrolling interests
  
(75)
    
(71)
    
(146)
Earnings (loss) from continuing operations attributable
                
   to GE common shareowners
$
8,016
  
$
(2,068)
  
$
5,946
                 
Per share amounts
                
   Earnings (loss) from continuing operations
                
      Diluted earnings (loss) per share
$
0.79
        
$
0.59
      Basic earnings (loss) per share
$
0.80
        
$
0.59
                 
Average equivalent shares
                
   Diluted
  
10,121
          
10,121
   Basic
  
10,042
          
10,042
                 

Amounts may not add due to rounding.
The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.



4

General Electric Company
Unaudited Pro Forma Condensed Consolidated Statement of Earnings
For the year ended December 31, 2014
                 
                 
   
General
            
   
Electric
            
   
Company
    
Consumer
      
(In millions; per-share amounts in dollars)
  
Historical
    
Adjustment
    
Pro Forma
                 
Revenues and other income
                
Sales of goods
$
76,569
  
$
-
  
$
76,568
Sales of services
  
30,190
    
-
    
30,190
Other income
  
778
    
-
    
778
GECC revenues from services
  
24,671
    
(15,023)
    
9,648
Total revenues and other income
  
132,208
    
(15,023)
    
117,184
                 
Costs and expenses
                
Costs of goods sold
  
61,257
    
-
    
61,257
Cost of services sold
  
20,054
    
-
    
20,053
Interest and other financial charges
  
5,334
    
(2,611)
    
2,723
Investment contracts, insurance losses and insurance annuity benefits
  
2,548
    
(18)
    
2,530
Provision for losses on financing receivables
  
3,623
    
(3,544)
    
80
Other costs and expenses
  
25,238
    
(4,959)
    
20,278
Total costs and expenses
  
118,054
    
(11,132)
    
106,921
                 
Earnings (loss) from continuing operations
                
     before income taxes
  
14,154
    
(3,891)
    
10,263
Benefit (provision) for income taxes
  
(1,508)
    
736
    
(773)
                 
Earnings (loss) from continuing operations
  
12,646
    
(3,155)
    
9,490
Less net earnings (loss) attributable to noncontrolling interests
  
112
    
(157)
    
(45)
Earnings (loss) from continuing operations attributable
                
   to GE common shareowners
$
12,534
  
$
(2,998)
  
$
9,535
                 
Per share amounts
                
   Earnings (loss) from continuing operations
                
      Diluted earnings (loss) per share
$
1.24
        
$
0.94
      Basic earnings (loss) per share
$
1.25
        
$
0.95
                 
Average equivalent shares
                
   Diluted
  
10,123
          
10,123
   Basic
  
10,045
          
10,045
                 

Amounts may not add due to rounding.
The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.



5

General Electric Company
Unaudited Pro Forma Condensed Consolidated Statement of Earnings
For the year ended December 31, 2013
                 
                 
   
General
            
   
Electric
            
   
Company
    
Consumer
      
(In millions; per-share amounts in dollars)
  
Historical
    
Adjustment
    
Pro Forma
                 
Revenues and other income
                
Sales of goods
$
71,873
  
$
-
  
$
71,873
Sales of services
  
28,669
    
-
    
28,669
Other income
  
3,108
    
-
    
3,107
GECC revenues from services
  
25,336
    
(15,741)
    
9,595
Total revenues and other income
  
128,986
    
(15,741)
    
113,245
                 
Costs and expenses
                
Costs of goods sold
  
57,867
    
-
    
57,867
Cost of services sold
  
19,274
    
-
    
19,274
Interest and other financial charges
  
5,539
    
(2,669)
    
2,870
Investment contracts, insurance losses and insurance annuity benefits
  
2,676
    
(15)
    
2,661
Provision for losses on financing receivables
  
4,053
    
(4,048)
    
5
Other costs and expenses
  
26,154
    
(4,686)
    
21,468
Total costs and expenses
  
115,563
    
(11,418)
    
104,145
                 
Earnings (loss) from continuing operations
                
     before income taxes
  
13,423
    
(4,324)
    
9,100
Benefit (provision) for income taxes
  
(1,212)
    
(7)
    
(1,219)
                 
Earnings (loss) from continuing operations
  
12,211
    
(4,330)
    
7,881
Less net earnings (loss) attributable to noncontrolling interests
  
298
    
(36)
    
262
Earnings (loss) from continuing operations attributable
                
   to GE common shareowners
$
11,913
  
$
(4,294)
  
$
7,618
                 
Per share amounts
                
   Earnings (loss) from continuing operations
                
      Diluted earnings (loss) per share
$
1.16
        
$
0.74
      Basic earnings (loss) per share
$
1.16
        
$
0.74
                 
Average equivalent shares
                
   Diluted
  
10,289
          
10,289
   Basic
  
10,222
          
10,222
                 

Amounts may not add due to rounding.
The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.



6

General Electric Company
Unaudited Pro Forma Condensed Consolidated Statement of Earnings
For the year ended December 31, 2012
                 
                 
   
General
            
   
Electric
            
   
Company
    
Consumer
      
(In millions; per-share amounts in dollars)
  
Historical
    
Adjustment
    
Pro Forma
                 
Revenues and other income
                
Sales of goods
$
72,990
  
$
-
  
$
72,990
Sales of services
  
27,158
    
-
    
27,158
Other income
  
2,563
    
-
    
2,563
GECC revenues from services
  
25,180
    
(15,303)
    
9,877
Total revenues and other income
  
127,891
    
(15,303)
    
112,588
                 
Costs and expenses
                
Costs of goods sold
  
56,785
    
-
    
56,784
Cost of services sold
  
17,525
    
-
    
17,525
Interest and other financial charges
  
6,442
    
(3,294)
    
3,149
Investment contracts, insurance losses and  insurance annuity benefits
  
2,857
    
(10)
    
2,847
Provision for losses on financing receivables
  
3,224
    
(3,218)
    
5
Other costs and expenses
  
26,497
    
(4,420)
    
22,077
Total costs and expenses
  
113,330
    
(10,942)
    
102,387
                 
Earnings (loss) from continuing operations
                
     before income taxes
  
14,561
    
(4,361)
    
10,201
Benefit (provision) for income taxes
  
(2,526)
    
1,141
    
(1,385)
                 
Earnings (loss) from continuing operations
  
12,035
    
(3,218)
    
8,816
Less net earnings (loss) attributable to noncontrolling interests
  
223
    
(53)
    
170
Earnings (loss) from continuing operations attributable
                
   to GE common shareowners
$
11,812
  
$
(3,165)
  
$
8,646
                 
Per share amounts
                
   Earnings (loss) from continuing operations
                
      Diluted earnings (loss) per share
$
1.12
        
$
0.82
      Basic earnings (loss) per share
$
1.12
        
$
0.82
                 
Average equivalent shares
                
   Diluted
  
10,564
          
10,564
   Basic
  
10,523
          
10,523
                 

Amounts may not add due to rounding.
The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.




7

NOTES TO THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1) CONSUMER DISCONTINUED OPERATIONS

On April 10, 2015, General Electric Company ("GE"), announced its plan (the "GE Capital Exit Plan") to reduce the size of its financial services businesses through the sale of most of the assets of its subsidiary, General Electric Capital Corporation ("GECC") over the next 24 months, and to focus on continued investment and growth in GE's industrial businesses.

As reported by GE on November 17, 2015, GE completed the split-off of Synchrony Financial ("Synchrony") which was reported in GECC's Consumer business. As previously disclosed in a Form 8-K filed on November 23, 2015, that transaction resulted in GE accepting 671,366,809 shares of its common stock in exchange for its Synchrony shares, as well as a pro forma gain as of September 30, 2015 of approximately $3.7 billion. Synchrony's historical results, as well as the actual gain on the transaction, will be reported as discontinued operations beginning in the fourth quarter of 2015.

On November 30, 2015, GE classified the rest of GECC's Consumer business as held for sale. In connection with that classification, and as anticipated by the GE Capital Exit Plan, GE expects to recognize after-tax charges in the range of approximately $0.5 billion to $1.0 billion related to the loss on disposal for that business. None of these charges are expected to result in future net cash expenditures, and the charges were included within the framework of GE's initial GE Capital Exit Plan announcement on April 10, 2015. The charges will be partially offset by an after-tax gain of approximately $0.5 billion on the sale of our consumer finance business in Australia and New Zealand that was completed on November 25, 2015. Both the charges and the gain will be reported in discontinued operations in the fourth quarter of 2015 and are not reflected in these unaudited pro forma condensed consolidated financial statements.

The Consumer business will be reported as discontinued operations beginning in the fourth quarter of 2015.  These unaudited pro forma condensed consolidated financial statements present the Consumer business as discontinued operations for all periods presented.




8