GE 2011 Annual Report Download - page 48

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46 GE 2011 ANNUAL REPORT
result of organic revenue declines ($1.4 billion), primarily due to
lower ENI, and higher impairments ($0.1 billion), partially offset by
the gain on the Garanti Bank transaction ($0.7 billion), the weaker
U.S. dollar ($0.5 billion) and higher gains ($0.1 billion). The increase
in net earnings resulted primarily from lower provisions for losses
on fi nancing receivables ($1.0 billion), the gain on the Garanti Bank
transaction ($0.3 billion) and acquisitions ($0.1 billion), partially
offset by lower Garanti results ($0.2 billion), and core decreases
($0.2 billion).
Consumer 2010 revenues increased 2% and net earnings
increased 97% compared with 2009. Revenues in 2010 were
reduced by $0.3 billion as a result of dispositions. Revenues in
2010 increased $0.7 billion compared with 2009 as a result of
the weaker U.S. dollar ($0.4 billion) and organic revenue growth
($0.4 billion). The increase in net earnings resulted primarily from
core growth ($1.3 billion) and the weaker U.S. dollar ($0.1 bil-
lion), partially offset by the effects of dispositions ($0.1 billion).
Core growth included lower provisions for losses on fi nancing
receivables across most platforms ($1.5 billion) and lower selling,
general and administrative costs ($0.2 billion), partially offset by
declines in lower-taxed earnings from global operations ($0.7 bil-
lion) including the absence of the fi rst quarter 2009 tax benefi t
($0.5 billion) from the decision to indefi nitely reinvest prior-year
earnings outside the U.S. and an increase in the valuation allow-
ance associated with Japan ($0.2 billion).
Real Estate 2011 revenues decreased 1% and net earnings
increased 47% compared with 2010. Revenues decreased as
organic revenue declines ($0.4 billion), primarily due to lower
ENI, were partially offset by increases in net gains on property
sales ($0.2 billion) and the weaker U.S. dollar ($0.1 billion). Real
Estate net earnings increased compared with 2010, as lower
impairments ($0.7 billion), a decrease in provisions for losses
on fi nancing receivables ($0.4 billion) and increases in net
gains on property sales ($0.2 billion) were partially offset by
core declines ($0.4 billion). Depreciation expense on real estate
equity investments totaled $0.9 billion and $1.0 billion in 2011
and 2010, respectively.
Real Estate 2010 revenues decreased 7% and net earn-
ings decreased 13% compared with 2009. Revenues for 2010
decreased $0.3 billion compared with 2009 as a result of
organic revenue declines and a decrease in property sales,
partially offset by the weaker U.S. dollar. Real Estate net earn-
ings decreased $0.2 billion compared with 2009, primarily from
an increase in impairments related to equity properties and
investments ($0.9 billion), partially offset by a decrease in provi-
sions for losses on fi nancing receivables ($0.4 billion), and core
increases ($0.3 billion). Depreciation expense on real estate
equity investments totaled $1.0 billion and $1.2 billion for 2010
and 2009, respectively.
Energy Financial Services 2011 revenues decreased 38%
and net earnings increased 20% compared with 2010. Revenues
decreased primarily as a result of the deconsolidation of Regency
($0.7 billion) and organic revenue declines ($0.3 billion), primarily
from an asset sale in 2010 by an investee. These decreases were
partially offset by higher gains ($0.2 billion). The increase in net
earnings resulted primarily from higher gains ($0.2 billion), partially
offset by the deconsolidation of Regency ($0.1 billion) and core
decreases, primarily from an asset sale in 2010 by an investee.
Energy Financial Services 2010 revenues decreased 8% and
net earnings increased 73% compared with 2009. Revenues in
2010 included a $0.1 billion gain related to the Regency trans-
action and in 2009 were reduced by $0.1 billion of gains from
dispositions. Revenues in 2010 decreased compared with 2009 as
a result of organic revenue growth ($0.4 billion), primarily increases
in associated company revenues resulting from an asset sale by an
investee ($0.2 billion), more than offset by the deconsolidation of
Regency. The increase in net earnings resulted primarily from core
increases ($0.1 billion), primarily increases in associated company
earnings resulting from an asset sale by an investee ($0.2 billion)
and the gain related to the Regency transaction ($0.1 billion).
GECAS 2011 revenues increased 3% and net earnings decreased
4% compared with 2010. Revenues for 2011 increased compared
with 2010 as a result of organic revenue growth ($0.1 billion). The
decrease in net earnings resulted primarily from core decreases
($0.1 billion), refl ecting the 2010 benefi t from resolution of the 2003–
2005 IRS audit, partially offset by lower impairments ($0.1 billion).
GECAS 2010 revenues increased 12% and net earnings increased
18% compared with 2009. Revenues in 2010 increased compared
with 2009 as a result of organic revenue growth ($0.5 billion), includ-
ing higher investment income. The increase in net earnings resulted
primarily from core increases ($0.2 billion), including the benefi t from
resolution of the 2003–2005 IRS audit, lower credit losses and higher
investment income, partially offset by higher impairments related to
our operating lease portfolio of commercial aircraft.
CORPORATE ITEMS AND ELIMINATIONS
(In millions) 2011 2010 2009
REVENUES
Gains on disposed businesses $ 3,705 $ 105 $ 303
Insurance activities 3,437 3,596 3,383
NBCU/NBCU LLC 1,981 16,901 15,436
Eliminations and other (1,539) (1,479) (1,251)
Total $ 7,584 $19,123 $17,871
OPERATING PROFIT (COST)
Gains on disposed businesses $ 3,705 $ 105 $ 303
NBCU/NBCU LLC 830 2,261 2,264
Insurance activities (58) (58) (79)
Principal retirement plans (a) (1,898) (493) (230)
Underabsorbed corporate
overhead and other costs (2,938) (2,920) (2,851)
Total $ (359) $ (1,105) $ (593)
(a) Included non-operating (non-GAAP) pension income (cost) of $(1.1) billion,
$0.3 billion and $1.5 billion in 2011, 2010 and 2009, respectively, which includes
interest costs, expected return on plan assets and non-cash amortization of
actuarial gains and losses. Also included operating (non-GAAP) pension income
(costs) of $(1.4) billion, $(1.4) billion and $(2.0) billion in 2011, 2010 and 2009,
respectively, which includes service cost and plan amendment amortization.
See the Supplemental Information section.