SEGMENT OPERATIONS |
SEGMENT OPERATIONS | | | | | | | | | | | | | | | | | | | SUMMARY OF OPERATING SEGMENTS | | | | | | | | | | Three months ended June 30 | | Six months ended June 30 | (In millions) | 2017 |
| 2016 |
| V% |
| | 2017 |
| 2016 |
| V% |
| | | | | | | | | Revenues | | | | | | | | Power | $ | 6,969 |
| $ | 6,639 |
| 5 | % | | $ | 13,058 |
| $ | 11,843 |
| 10 | % | Renewable Energy | 2,457 |
| 2,094 |
| 17 | % | | 4,501 |
| 3,763 |
| 20 | % | Oil & Gas | 3,108 |
| 3,219 |
| (3) | % | | 6,110 |
| 6,533 |
| (6 | )% | Aviation | 6,532 |
| 6,511 |
| — | % | | 13,336 |
| 12,774 |
| 4 | % | Healthcare | 4,700 |
| 4,525 |
| 4 | % | | 8,990 |
| 8,708 |
| 3 | % | Transportation | 1,071 |
| 1,240 |
| (14) | % | | 2,110 |
| 2,222 |
| (5 | )% | Energy Connections & Lighting(a) | 3,210 |
| 4,401 |
| (27) | % | | 5,957 |
| 8,657 |
| (31 | )% | Total industrial segment revenues | 28,047 |
| 28,630 |
| (2) | % | | 54,063 |
| 54,499 |
| (1 | )% | Capital | 2,446 |
| 2,771 |
| (12) | % | | 5,127 |
| 5,656 |
| (9 | )% | Total segment revenues | 30,493 |
| 31,401 |
| (3) | % | | 59,190 |
| 60,155 |
| (2 | )% | Corporate items and eliminations | (935 | ) | 2,093 |
| | | (1,972 | ) | 1,184 |
| | Consolidated revenues | $ | 29,558 |
| $ | 33,494 |
| (12) | % | | $ | 57,219 |
| $ | 61,339 |
| (7 | )% | | | | | | | | | Segment profit (loss) | | | | | | | | Power | $ | 1,031 |
| $ | 1,140 |
| (10) | % | | $ | 1,827 |
| $ | 1,714 |
| 7 | % | Renewable Energy | 160 |
| 128 |
| 25 | % | | 267 |
| 211 |
| 27 | % | Oil & Gas | 155 |
| 320 |
| (52) | % | | 361 |
| 628 |
| (43 | )% | Aviation | 1,492 |
| 1,348 |
| 11 | % | | 3,176 |
| 2,872 |
| 11 | % | Healthcare | 826 |
| 782 |
| 6 | % | | 1,469 |
| 1,413 |
| 4 | % | Transportation | 203 |
| 273 |
| (26) | % | | 359 |
| 437 |
| (18 | )% | Energy Connections & Lighting(a) | 80 |
| 131 |
| (39) | % | | 109 |
| 162 |
| (33 | )% | Total industrial segment profit | 3,947 |
| 4,122 |
| (4) | % | | 7,568 |
| 7,437 |
| 2 | % | Capital | (172 | ) | (600 | ) | 71 | % | | (219 | ) | (1,492 | ) | 85 | % | Total segment profit (loss) | 3,775 |
| 3,523 |
| 7 | % | | 7,349 |
| 5,944 |
| 24 | % | Corporate items and eliminations | (1,583 | ) | 974 |
| | | (3,592 | ) | (597 | ) | | GE interest and other financial charges | (637 | ) | (567 | ) | | | (1,200 | ) | (1,007 | ) | | GE provision for income taxes | (218 | ) | (629 | ) | | | (361 | ) | (793 | ) | | Earnings (loss) from continuing operations attributable to GE common shareowners | 1,338 |
| 3,300 |
| (59) | % | | 2,196 |
| 3,548 |
| (38 | )% | Earnings (loss) from discontinued operations, net of taxes | (146 | ) | (541 | ) | 73 | % | | (385 | ) | (849 | ) | 55 | % | Less net earnings attributable to | | | | | | | | noncontrolling interests, discontinued operations | 7 |
| 3 |
| | | 7 |
| 3 |
| | Earnings (loss) from discontinued operations, | | | | | | | | net of tax and noncontrolling interest | (152 | ) | (544 | ) | 72 | % | | (392 | ) | (852 | ) | 54 | % | Consolidated net earnings (loss) attributable to the GE common shareowners | $ | 1,185 |
| $ | 2,756 |
| (57) | % | | $ | 1,804 |
| $ | 2,695 |
| (33 | )% |
| | (a) | Beginning in the third quarter of 2017, the Energy Connections business within the Energy Connections & Lighting segment is expected to be combined with the Power segment and presented as one reporting segment called Power. |
REVENUES AND PROFIT
Segment revenues include revenues and other income related to the segment.
Segment profit is determined based on internal performance measures used by the Chief Executive Officer (CEO) to assess the performance of each business in a given period. In connection with that assessment, the CEO may exclude matters, such as charges for restructuring, rationalization and other similar expenses, acquisition costs and other related charges, technology and product development costs, certain gains and losses from acquisitions or dispositions, and litigation settlements or other charges, for which responsibility preceded the current management team. See the Corporate Items and Eliminations section within this MD&A for additional information about costs excluded from segment profit.
Segment profit excludes results reported as discontinued operations and material accounting changes. Segment profit also excludes the portion of earnings or loss attributable to noncontrolling interests of consolidated subsidiaries, and as such only includes the portion of earnings or loss attributable to our share of the consolidated earnings or loss of consolidated subsidiaries.
Segment profit excludes or includes interest and other financial charges, income taxes, and preferred stock dividends according to how a particular segment’s management is measured:
| | • | Interest and other financial charges, income taxes and GE preferred stock dividends are excluded in determining segment profit (which we sometimes refer to as “operating profit”) for the industrial segments. |
| | • | Interest and other financial charges, income taxes and GE Capital preferred stock dividends are included in determining segment profit (which we sometimes refer to as “net earnings”) for the Capital segment. |
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 is allocated based on each segment’s relative net cost of operations.
With respect to the segment revenue and profit walks, the overall effect of foreign exchange is included within multiple captions as follows:
| | • | The translational foreign exchange impact is included within Foreign Exchange. |
| | • | The transactional impact of foreign exchange hedging is included in operating cost within Productivity and in other income within Other. |
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