GUARANTOR FINANCIAL INFORMATION |
NOTE 22. GUARANTOR FINANCIAL INFORMATION GE Capital International Funding Company Unlimited Company (the Issuer) previously issued senior unsecured registered notes that are fully and unconditionally, jointly and severally guaranteed by both the Company and GE Capital International Holdings Limited (each a Guarantor, and together, the Guarantors). The Company is required to provide certain financial information regarding the Issuer and the Guarantors of the registered securities, specifically Condensed Consolidating Statements of Earnings and Comprehensive Income, Condensed Consolidating Statements of Financial Position and Condensed Consolidating Statements of Cash Flows for:
| | • | General Electric Company (the Parent Company Guarantor) – prepared with investments in subsidiaries accounted for under the equity method of accounting and excluding any inter-segment eliminations; |
| | • | GE Capital International Funding Company Unlimited Company (the Subsidiary Issuer) – finance subsidiary that issued the guaranteed notes for debt; |
| | • | GE Capital International Holdings Limited (GECIHL) (the Subsidiary Guarantor) – prepared with investments in non-guarantor subsidiaries accounted for under the equity method of accounting; |
| | • | Non-Guarantor Subsidiaries – prepared on an aggregated basis excluding any elimination or consolidation adjustments and includes predominantly all non-cash adjustments for cash flows; |
| | • | Consolidating Adjustments – adjusting entries necessary to consolidate the Parent Company Guarantor with the Subsidiary Issuer, the Subsidiary Guarantor and Non-Guarantor Subsidiaries and in the comparative periods, this category includes the impact of new accounting policies adopted as described in Note 1; and |
| | • | Consolidated – prepared on a consolidated basis. |
| | | | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) | FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019 (UNAUDITED) | | (In millions) | Parent Company Guarantor |
| Subsidiary Issuer |
| Subsidiary Guarantor |
| Non- Guarantor Subsidiaries |
| Consolidating Adjustments |
| Consolidated |
| | | | | | | | Sales of goods and services | $ | 7,169 |
| $ | — |
| $ | — |
| $ | 31,413 |
| $ | (17,077 | ) | $ | 21,504 |
| GE Capital revenues from services | — |
| 245 |
| (18 | ) | 2,107 |
| (477 | ) | 1,856 |
| Total revenues | 7,169 |
| 245 |
| (18 | ) | 33,519 |
| (17,554 | ) | 23,360 |
| | | | | | | | Interest and other financial charges | 634 |
| 272 |
| 356 |
| 148 |
| (132 | ) | 1,279 |
| Other costs and expenses | 4,945 |
| — |
| (38 | ) | 40,629 |
| (22,048 | ) | 23,488 |
| Total costs and expenses | 5,580 |
| 272 |
| 318 |
| 40,777 |
| (22,180 | ) | 24,767 |
| Other income (loss) | 1,320 |
| — |
| — |
| 4,458 |
| (5,619 | ) | 158 |
| Equity in earnings (loss) of affiliates | (4,476 | ) | — |
| (37 | ) | 31,207 |
| (26,695 | ) | — |
| Earnings (loss) from continuing operations before income taxes | (1,567 | ) | (27 | ) | (373 | ) | 28,406 |
| (27,688 | ) | (1,249 | ) | Benefit (provision) for income taxes | (386 | ) | 3 |
| — |
| 339 |
| 3 |
| (41 | ) | Earnings (loss) from continuing operations | (1,953 | ) | (24 | ) | (373 | ) | 28,745 |
| (27,685 | ) | (1,290 | ) | Earnings (loss) from discontinued operations, net of taxes | 683 |
| — |
| 40 |
| — |
| (8,817 | ) | (8,093 | ) | Net earnings (loss) | (1,270 | ) | (24 | ) | (333 | ) | 28,745 |
| (36,502 | ) | (9,383 | ) | Less net earnings (loss) attributable to noncontrolling interests | — |
| — |
| — |
| (7 | ) | 46 |
| 40 |
| Net earnings (loss) attributable to the Company | (1,270 | ) | (24 | ) | (333 | ) | 28,752 |
| (36,548 | ) | (9,423 | ) | Other comprehensive income (loss) | 1,491 |
| — |
| (1 | ) | 1,313 |
| (1,312 | ) | 1,491 |
| Comprehensive income (loss) attributable to the Company | $ | 221 |
| $ | (24 | ) | $ | (334 | ) | $ | 30,064 |
| $ | (37,860 | ) | $ | (7,931 | ) |
| | | | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) | FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2018 (UNAUDITED) | | (in millions) | Parent Company Guarantor |
| Subsidiary Issuer |
| Subsidiary Guarantor |
| Non- Guarantor Subsidiaries |
| Consolidating Adjustments |
| Consolidated |
| | | | | | | | Sales of goods and services | $ | 7,301 |
| $ | — |
| $ | — |
| $ | 30,387 |
| $ | (16,407 | ) | $ | 21,282 |
| GE Capital revenues from services | — |
| 237 |
| 300 |
| 2,508 |
| (936 | ) | 2,110 |
| Total revenues | 7,301 |
| 237 |
| 300 |
| 32,895 |
| (17,342 | ) | 23,392 |
| | | | | | | | Interest and other financial charges | 451 |
| 236 |
| 725 |
| 553 |
| (810 | ) | 1,155 |
| Other costs and expenses | 11,780 |
| — |
| — |
| 25,345 |
| 8,352 |
| 45,478 |
| Total costs and expenses | 12,231 |
| 236 |
| 725 |
| 25,898 |
| 7,542 |
| 46,633 |
| Other income (loss) | 1,193 |
| — |
| — |
| 1,217 |
| (2,132 | ) | 279 |
| Equity in earnings (loss) of affiliates | (11,235 | ) | — |
| 705 |
| 28,378 |
| (17,849 | ) | — |
| Earnings (loss) from continuing operations before income taxes | (14,971 | ) | 2 |
| 281 |
| 36,593 |
| (44,866 | ) | (22,962 | ) | Benefit (provision) for income taxes | 224 |
| — |
| — |
| (536 | ) | 260 |
| (52 | ) | Earnings (loss) from continuing operations | (14,748 | ) | 1 |
| 281 |
| 36,057 |
| (44,606 | ) | (23,014 | ) | Earnings (loss) from discontinued operations, net of taxes | 39 |
| — |
| 18 |
| — |
| 98 |
| 155 |
| Net earnings (loss) | (14,708 | ) | 1 |
| 298 |
| 36,057 |
| (44,508 | ) | (22,859 | ) | Less net earnings (loss) attributable to noncontrolling interests | — |
| — |
| — |
| (81 | ) | (9 | ) | (90 | ) | Net earnings (loss) attributable to the Company | (14,708 | ) | 1 |
| 298 |
| 36,138 |
| (44,498 | ) | (22,769 | ) | Other comprehensive income (loss) | 203 |
| — |
| 12 |
| (751 | ) | 739 |
| 203 |
| Comprehensive income (loss) attributable to the Company | $ | (14,505 | ) | $ | 1 |
| $ | 310 |
| $ | 35,387 |
| $ | (43,759 | ) | $ | (22,566 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) | FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 (UNAUDITED) | | (in millions) | Parent Company Guarantor |
| Subsidiary Issuer |
| Subsidiary Guarantor |
| Non- Guarantor Subsidiaries |
| Consolidating Adjustments |
| Consolidated |
| | | | | | | | Sales of goods and services | $ | 19,993 |
| $ | — |
| $ | — |
| $ | 95,009 |
| $ | (51,871 | ) | $ | 63,132 |
| GE Capital revenues from services | — |
| 724 |
| 68 |
| 6,738 |
| (1,685 | ) | 5,845 |
| Total revenues | 19,993 |
| 724 |
| 68 |
| 101,747 |
| (53,556 | ) | 68,976 |
| | | | | | | | Interest and other financial charges | 1,278 |
| 744 |
| 1,068 |
| 899 |
| (716 | ) | 3,272 |
| Other costs and expenses | 18,377 |
| — |
| — |
| 85,378 |
| (36,458 | ) | 67,296 |
| Total costs and expenses | 19,654 |
| 744 |
| 1,068 |
| 86,276 |
| (37,174 | ) | 70,568 |
| Other income (loss) | (1,894 | ) | — |
| — |
| 12,588 |
| (9,524 | ) | 1,170 |
| Equity in earnings (loss) of affiliates | (4,430 | ) | — |
| 808 |
| 58,383 |
| (54,761 | ) | — |
| Earnings (loss) from continuing operations before income taxes | (5,985 | ) | (20 | ) | (192 | ) | 86,442 |
| (80,667 | ) | (422 | ) | Benefit (provision) for income taxes | (673 | ) | 3 |
| — |
| 46 |
| 624 |
| 1 |
| Earnings (loss) from continuing operations | (6,658 | ) | (18 | ) | (192 | ) | 86,489 |
| (80,043 | ) | (421 | ) | Earnings (loss) from discontinued operations, net of taxes | 951 |
| — |
| 42 |
| — |
| (6,205 | ) | (5,212 | ) | Net earnings (loss) | (5,707 | ) | (18 | ) | (150 | ) | 86,489 |
| (86,248 | ) | (5,634 | ) | Less net earnings (loss) attributable to noncontrolling interests | — |
| — |
| — |
| (3 | ) | 76 |
| 73 |
| Net earnings (loss) attributable to the Company | (5,707 | ) | (18 | ) | (150 | ) | 86,492 |
| (86,324 | ) | (5,707 | ) | Other comprehensive income (loss) | 3,053 |
| — |
| (1,105 | ) | 870 |
| 235 |
| 3,053 |
| Comprehensive income (loss) attributable to the Company | $ | (2,654 | ) | $ | (18 | ) | $ | (1,255 | ) | $ | 87,362 |
| $ | (86,089 | ) | $ | (2,654 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS) | FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 (UNAUDITED) | | (in millions) | Parent Company Guarantor |
| Subsidiary Issuer |
| Subsidiary Guarantor |
| Non- Guarantor Subsidiaries |
| Consolidating Adjustments |
| Consolidated |
| | | | | | | | Sales of goods and services | $ | 21,127 |
| $ | — |
| $ | — |
| $ | 94,872 |
| $ | (51,395 | ) | $ | 64,604 |
| GE Capital revenues from services | — |
| 678 |
| 852 |
| 5,390 |
| (1,011 | ) | 5,909 |
| Total revenues | 21,127 |
| 678 |
| 852 |
| 100,263 |
| (52,406 | ) | 70,513 |
| | | | | | | | Interest and other financial charges | 1,281 |
| 671 |
| 1,889 |
| 2,041 |
| (2,296 | ) | 3,585 |
| Other costs and expenses | 32,198 |
| — |
| — |
| 89,228 |
| (31,793 | ) | 89,634 |
| Total costs and expenses | 33,479 |
| 672 |
| 1,889 |
| 91,269 |
| (34,090 | ) | 93,219 |
| Other income (loss) | 2,450 |
| — |
| — |
| 3,883 |
| (4,945 | ) | 1,388 |
| Equity in earnings (loss) of affiliates | (11,761 | ) | — |
| 1,199 |
| 28,378 |
| (17,816 | ) | — |
| Earnings (loss) from continuing operations before income taxes | (21,663 | ) | 7 |
| 161 |
| 41,255 |
| (41,078 | ) | (21,318 | ) | Benefit (provision) for income taxes | 47 |
| (1 | ) | — |
| (1,098 | ) | 592 |
| (460 | ) | Earnings (loss) from continuing operations | (21,616 | ) | 6 |
| 161 |
| 40,157 |
| (40,486 | ) | (21,777 | ) | Earnings (loss) from discontinued operations, net of taxes | (1,634 | ) | — |
| (63 | ) | 1 |
| 170 |
| (1,526 | ) | Net earnings (loss) | (23,250 | ) | 6 |
| 98 |
| 40,158 |
| (40,316 | ) | (23,304 | ) | Less net earnings (loss) attributable to noncontrolling interests | (134 | ) | — |
| — |
| (202 | ) | 148 |
| (188 | ) | Net earnings (loss) attributable to the Company | (23,116 | ) | 6 |
| 98 |
| 40,360 |
| (40,464 | ) | (23,116 | ) | Other comprehensive income (loss) | 1,174 |
| — |
| (42 | ) | (2,381 | ) | 2,424 |
| 1,174 |
| Comprehensive income (loss) attributable to the Company | $ | (21,941 | ) | $ | 6 |
| $ | 56 |
| $ | 37,978 |
| $ | (38,040 | ) | $ | (21,941 | ) |
| | | | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION SEPTEMBER 30, 2019 (UNAUDITED) | | (In millions) | Parent Company Guarantor |
| Subsidiary Issuer |
| Subsidiary Guarantor |
| Non- Guarantor Subsidiaries |
| Consolidating Adjustments |
| Consolidated |
| | | | | | | | Cash, cash equivalents and restricted cash | $ | 10,001 |
| $ | — |
| $ | — |
| $ | 21,215 |
| $ | (3,406 | ) | $ | 27,810 |
| Receivables - net | 41,269 |
| 17,841 |
| 34 |
| 61,998 |
| (94,416 | ) | 26,726 |
| Investment in subsidiaries | 143,127 |
| — |
| 40,179 |
| 699,149 |
| (882,455 | ) | — |
| All other assets | 31,724 |
| 480 |
| — |
| 316,579 |
| (140,309 | ) | 208,474 |
| Total assets | $ | 226,120 |
| $ | 18,322 |
| $ | 40,212 |
| $ | 1,098,942 |
| $ | (1,120,586 | ) | $ | 263,009 |
| | | | | | | | Short-term borrowings | $ | 130,045 |
| $ | — |
| $ | 1,552 |
| $ | 7,303 |
| $ | (121,854 | ) | $ | 17,046 |
| Long-term and non-recourse borrowings | 40,901 |
| 17,019 |
| 25,511 |
| 24,676 |
| (31,909 | ) | 76,199 |
| All other liabilities | 65,166 |
| 275 |
| 219 |
| 136,051 |
| (61,100 | ) | 140,612 |
| Total liabilities | 236,112 |
| 17,294 |
| 27,282 |
| 168,031 |
| (214,863 | ) | 233,856 |
| | | | | | | | Total liabilities and equity | $ | 226,120 |
| $ | 18,322 |
| $ | 40,212 |
| $ | 1,098,942 |
| $ | (1,120,586 | ) | $ | 263,009 |
|
| | | | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2018 | (In millions) | Parent Company Guarantor |
| Subsidiary Issuer |
| Subsidiary Guarantor |
| Non- Guarantor Subsidiaries |
| Consolidating Adjustments |
| Consolidated |
| | | | | | | | Cash, cash equivalents and restricted cash | $ | 9,561 |
| $ | — |
| $ | — |
| $ | 25,975 |
| $ | (4,412 | ) | $ | 31,124 |
| Receivables - net | 27,868 |
| 17,467 |
| 2,792 |
| 56,256 |
| (74,895 | ) | 29,488 |
| Investment in subsidiaries | 175,071 |
| — |
| 45,832 |
| 733,535 |
| (954,437 | ) | — |
| All other assets | 19,165 |
| 12 |
| — |
| 298,493 |
| (67,210 | ) | 250,460 |
| Total assets | $ | 231,665 |
| $ | 17,479 |
| $ | 48,623 |
| $ | 1,114,260 |
| $ | (1,100,954 | ) | $ | 311,072 |
| | | | | | | | Short-term borrowings | $ | 143,481 |
| $ | — |
| $ | 9,854 |
| $ | 9,653 |
| $ | (150,212 | ) | $ | 12,776 |
| Long-term and non-recourse borrowings | 50,705 |
| 16,115 |
| 24,341 |
| 47,014 |
| (47,352 | ) | 90,824 |
| All other liabilities | 45,722 |
| 336 |
| 245 |
| 133,203 |
| (23,514 | ) | 155,992 |
| Total liabilities | 239,908 |
| 16,452 |
| 34,439 |
| 189,870 |
| (221,078 | ) | 259,591 |
| | | | | | | | Total liabilities and equity | $ | 231,665 |
| $ | 17,479 |
| $ | 48,623 |
| $ | 1,114,260 |
| $ | (1,100,954 | ) | $ | 311,072 |
|
| | | | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2019 (UNAUDITED) | (In millions) | Parent Company Guarantor |
| Subsidiary Issuer |
| Subsidiary Guarantor |
| Non- Guarantor Subsidiaries |
| Consolidating Adjustments |
| Consolidated |
| | | | | | | | Cash from (used for) operating activities(a) | $ | 9,148 |
| $ | 400 |
| $ | (1,539 | ) | $ | 6,556 |
| $ | (12,531 | ) | $ | 2,033 |
| | | | | | | | Cash from (used for) investing activities | $ | 34,181 |
| $ | (400 | ) | $ | 6,072 |
| $ | 108,843 |
| $ | (143,646 | ) | $ | 5,050 |
| | | | | | | | Cash from (used for) financing activities | $ | (42,889 | ) | $ | — |
| $ | (4,532 | ) | $ | (120,127 | ) | $ | 153,460 |
| $ | (14,089 | ) | | | | | | | | Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | — |
| — |
| — |
| (131 | ) | — |
| (131 | ) | Increase (decrease) in cash, cash equivalents and restricted cash | 440 |
| — |
| — |
| (4,859 | ) | (2,717 | ) | (7,136 | ) | Cash, cash equivalents and restricted cash at beginning of year | 9,561 |
| — |
| — |
| 26,676 |
| (689 | ) | 35,548 |
| Cash, cash equivalents and restricted cash at September 30 | 10,001 |
| — |
| — |
| 21,817 |
| (3,406 | ) | 28,412 |
| Less cash, cash equivalents and restricted cash of discontinued operations at September 30 | — |
| — |
| — |
| 602 |
| — |
| 602 |
| Cash, cash equivalents and restricted cash of continuing operations at September 30 | $ | 10,001 |
| $ | — |
| $ | — |
| $ | 21,215 |
| $ | (3,406 | ) | $ | 27,810 |
|
| | (a) | Parent Company Guarantor cash flows included cash from (used for) operating activities of discontinued operations of $(2,382) million. |
| | | | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2018 (UNAUDITED) | (In millions) | Parent Company Guarantor |
| Subsidiary Issuer |
| Subsidiary Guarantor |
| Non- Guarantor Subsidiaries |
| Consolidating Adjustments |
| Consolidated |
| | | | | | | | Cash from (used for) operating activities(a) | $ | 11,267 |
| $ | (118 | ) | $ | (381 | ) | $ | 24,135 |
| $ | (38,492 | ) | $ | (3,589 | ) | | | | | | | | Cash from (used for) investing activities | $ | (625 | ) | $ | 189 |
| $ | (1,052 | ) | $ | (18,293 | ) | $ | 31,417 |
| $ | 11,636 |
| | | | | | | | Cash from (used for) financing activities | $ | (11,824 | ) | $ | (70 | ) | $ | 1,445 |
| $ | (16,845 | ) | $ | 2,328 |
| $ | (24,967 | ) | | | | | | | | Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | — |
| — |
| — |
| (440 | ) | — |
| (440 | ) | Increase (decrease) in cash, cash equivalents and restricted cash | (1,183 | ) | — |
| 12 |
| (11,443 | ) | (4,747 | ) | (17,361 | ) | Cash, cash equivalents and restricted cash at beginning of year | 3,472 |
| — |
| 3 |
| 41,993 |
| (743 | ) | 44,724 |
| Cash, cash equivalents and restricted cash at September 30 | 2,289 |
| — |
| 15 |
| 30,550 |
| (5,490 | ) | 27,364 |
| Less cash, cash equivalents and restricted cash of discontinued operations at September 30 | — |
| — |
| — |
| 5,310 |
| — |
| 5,310 |
| Cash, cash equivalents and restricted cash of continuing operations at September 30 | $ | 2,289 |
| $ | — |
| $ | 15 |
| $ | 25,240 |
| $ | (5,490 | ) | $ | 22,054 |
|
(a) Parent Company Guarantor cash flows included cash from (used for) operating activities of discontinued operations of $185 million.
|