GE 2012 Annual Report Download - page 44

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management’s discussion and analsis
42 GE 2012 ANNUAL REPORT
includes interest and other financial charges and income taxes
according to how a particular segment’s management is mea-
sured. These costs are excluded in determining segment profit,
which we sometimes refer to as “operating profit,” for Power &
Water, Oil & Gas, Energy Management, Aviation, Healthcare,
Transportation, and Home & Business Solutions and are 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 seg-
ment’s relative net cost of operations. Prior to January 1, 2011,
segment profit excluded the effects of principal pension plans.
Beginning January 1, 2011, we began allocating service costs
related to our principal pension plans and no longer allocate the
retiree costs of our postretirement healthcare benefits to our
segments. This revised allocation methodology better aligns seg-
ment operating costs to the active employee costs, which are
managed by the segments. This change does not significantly
affect reported segment results.
We have reclassified certain prior-period amounts to conform
to the current-period presentation. For additional information
about our segments, see Note 28.
Summary of Operating Segments
General Electric Company and consolidated affiliates
(In millions) 2012 2011 2010 2009 2008
REVENUES (a)
Power & Water $ 28,299 $ 25,675 $ 24,779 $ 27,389 $ 28,537
Oil & Gas 15,241 13,608 9,433 9,683 9,886
Energy Management 7,412 6,422 5,161 5,223 6,427
Aviation 19,994 18,859 17,619 18,728 19,239
Healthcare 18,290 18,083 16,897 16,015 17,392
Transportation 5,608 4,885 3,370 3,827 5,016
Home & Business Solutions 7,967 7,693 7,957 7,816 9,304
Total industrial segment revenues 102,811 95,225 85,216 88,681 95,801
GE Capital 46,039 49,068 49,856 51,776 68,541
Total segment revenues 148,850 144,293 135,072 140,457 164,342
Corporate items and eliminations (b) (1,491) 2,995 14,495 13,939 15,427
CONSOLIDATED REVENUES $147,359 $147,288 $149,567 $154,396 $179,769
SEGMENT PROFIT
Power & Water $ 5,422 $ 5,021 $ 5,804 $ 5,592 $ 4,563
Oil & Gas 1,924 1,660 1,406 1,440 1,555
Energy Management 131 78 156 144 478
Aviation 3,747 3,512 3,304 3,923 3,684
Healthcare 2,920 2,803 2,741 2,420 2,851
Transportation 1,031 757 315 473 962
Home & Business Solutions 311 237 404 360 287
Total industrial segment profit 15,486 14,068 14,130 14,352 14,380
GE Capital 7,401 6,584 3,120 1,253 7,470
Total segment profit 22,887 20,652 17,250 15,605 21,850
Corporate items and eliminations (b) (4,842) (287) (1,013) (507) 1,516
GE interest and other financial charges (1,353) (1,299) (1,600) (1,478) (2,153)
GE provision for income taxes (2,013) (4,839) (2,024) (2,739) (3,427)
Earnings from continuing operations attributable to the Company 14,679 14,227 12,613 10,881 17,786
Earnings (loss) from discontinued operations, net of taxes (1,038) (76) (969) 144 (376)
CONSOLIDATED NET EARNINGS ATTRIBUTABLE TO THE COMPANY $ 13,641 $ 14,151 $ 11,644 $ 11,025 $ 17,410
(a) Segment revenues includes both revenues and other income related to the segment.
(b) Includes the results of NBCU, our formerly consolidated subsidiary, and our current equity method investment in NBCUniversal LLC.
See accompanying notes to consolidated financial statements.