GE 2013 Annual Report Download - page 137

GE 2013 ANNUAL REPORT 135
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Note 26.
Intercompany Transactions
Transactions between related companies are made on an
arms-length basis, are eliminated and consist primarily of GECC
dividends to GE; GE customer receivables sold to GECC; GECC
services for trade receivables management and material procure-
ment; buildings and equipment (including automobiles) leased
between GE and GECC; information technology (IT) and other
services sold to GECC by GE; aircraft engines manufactured by GE
that are installed on aircraft purchased by GECC from third-party
producers for lease to others; and various investments, loans and
allocations of GE corporate overhead costs.
These intercompany transactions are reported in the GE and
GECC columns of our fi nancial statements, but are eliminated in
deriving our consolidated fi nancial statements. Effects of these
eliminations on our consolidated cash fl ows from operating,
investing and fi nancing activities are $(5,088) million, $492 mil-
lion and $4,690 million for 2013, $(8,542) million, $2,328 million
and $6,703 million for 2012 and $(558) million, $(373) million and
$903 million for 2011, respectively. Details of these eliminations
are shown below.
For the years ended December 31 (In millions) 2013 2012 2011
CASH FROM (USED FOR) OPERATING
ACTIVITIES—CONTINUING OPERATIONS
Combined $ 34,125 $ 39,557 $ 32,669
GE customer receivables sold
to GECC 360 (1,809) (577)
GECC dividends to GE (5,985) (6,426) —
Other reclassifications and
eliminations 537 (307) 19
$ 29,037 $ 31,015 $ 32,111
CASH FROM (USED FOR) INVESTING
ACTIVITIES—CONTINUING OPERATIONS
Combined $ 28,182 $ 9,262 $ 21,540
GE customer receivables sold
to GECC 262 2,005 421
Other reclassifications and
eliminations 230 323 (794)
$ 28,674 $ 11,590 $ 21,167
CASH FROM (USED FOR) FINANCING
ACTIVITIES—CONTINUING OPERATIONS
Combined $ (50,319) $ (57,758) $ (47,818)
GE customer receivables sold
to GECC (622) (196) 156
GECC dividends to GE 5,985 6,426 —
Other reclassifications and
eliminations (673) 473 747
$ (45,629) $ (51,055) $ (46,915)
Note 27.
Operating Segments
Basis for Presentation
Our operating businesses are organized based on the nature of
markets and customers. Segment accounting policies are the
same as described in Note 1. Segment results for our fi nancial
services businesses refl ect the discrete tax effect of transactions.
Results of our formerly consolidated subsidiary, NBCU, and
our equity method investment in NBCU LLC, which we sold in the
fi rst quarter of 2013 are reported in the “Corporate items and
eliminations” line on the Summary of Operating Segments.
A description of our operating segments as of December 31,
2013, can be found below, and details of segment profi t by
operating segment can be found in the Summary of Operating
Segments table in Management’s Discussion and Analysis of
Financial Condition and Results of Operations.
Power & Water
Power plant products and services, including design, installation,
operation and maintenance services are sold into global markets.
Gas, steam and aeroderivative turbines, nuclear reactors, gen-
erators, combined cycle systems, controls and related services,
including total asset optimization solutions, equipment upgrades
and long-term maintenance service agreements are sold to
power generation and other industrial customers. Renewable
energy solutions include wind turbines. Water treatment services
and equipment include specialty chemical treatment programs,
water purifi cation equipment, mobile treatment systems and
desalination processes.
Oil & Gas
Oil & Gas supplies mission critical equipment for the global oil and
gas industry, used in applications spanning the entire value chain
from drilling and completion through production, liquefi ed natu-
ral gas (LNG) and pipeline compression, pipeline inspection, and
including downstream processing in refi neries and petrochemi-
cal plants. The business designs and manufactures surface and
subsea drilling and production systems, equipment for fl oating
production platforms, compressors, turbines, turboexpanders,
high pressure reactors, industrial power generation and a broad
portfolio of auxiliary equipment.
Energy Management
Energy Management is GE’s electrifi cation business. Global teams
design leading technology solutions for the delivery, management,
conversion and optimization of electrical power for customers
across multiple energy-intensive industries. GE has invested in our
Energy Management capabilities, with strategic acquisitions and
joint ventures that enable GE to increase its offerings to the util-
ity, industrial, renewables, oil and gas, marine, metals and mining
industries. Plant automation hardware, software and embedded
computing systems including controllers, embedded systems,
advanced software, motion control, operator interfaces and indus-
trial computers are also provided by Energy Management.