GE 2013 Annual Report Download - page 47

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GE 2013 ANNUAL REPORT 45
Consumer 2012 revenues decreased 7% and net earnings
decreased 11% compared with 2011. Revenues for 2012 included
$0.1 billion from acquisitions and were reduced by $0.1 billion
as a result of dispositions. Revenues in 2012 also decreased as
a result of the absence of the 2011 gain on the Garanti Bank
transaction ($0.7 billion), the stronger U.S. dollar ($0.4 billion)
and organic revenue declines ($0.2 billion). The decrease in net
earnings resulted primarily from the absence of the 2011 gain
on the Garanti Bank transaction and operations ($0.4 billion),
higher provisions for losses on fi nancing receivables ($0.1 billion)
and dispositions ($0.1 billion), partially offset by core increases
($0.2 billion). The higher provisions for losses on fi nancing receiv-
ables refl ected the use of a more granular portfolio segmentation
approach, by loss type, in determining the incurred loss period in
our U.S. Installment and Revolving Credit portfolio.
Real Estate 2013 revenues increased 7% and net earnings
were favorable compared with 2012. Revenues in 2013 increased
primarily as a result of increases in net gains on property sales
($1.1 billion) mainly due to the sale of real estate comprising cer-
tain fl oors located at 30 Rockefeller Center, New York, partially
offset by organic revenue declines ($0.7 billion), primarily due
to lower ENI ($0.6 billion). Real Estate net earnings increased
as a result of core increases ($0.9 billion) including increases in
net gains on property sales ($0.7 billion) and higher tax benefi ts
($0.3 billion). Depreciation expense on real estate equity invest-
ments totaled $0.6 billion and $0.8 billion in 2013 and 2012,
respectively.
Real Estate 2012 revenues decreased 2% and net earnings
were favorable compared with 2011. Revenues in 2012 decreased
as a result of organic revenue declines ($0.2 billion), primarily due
to lower ENI, and the stronger U.S. dollar ($0.1 billion), partially
offset by increases in net gains on property sales ($0.2 billion).
Real Estate net earnings increased as a result of lower impair-
ments ($0.7 billion), core increases ($0.7 billion) including higher
tax benefi ts of $0.5 billion, lower provisions for losses on
fi nancing receivables ($0.2 billion) and increases in net gains on
property sales ($0.1 billion). Depreciation expense on real estate
equity investments totaled $0.8 billion and $0.9 billion in 2012
and 2011, respectively.
Energy Financial Services 2013 revenues increased 1% and
net earnings decreased 5% compared with 2012. Revenues in
2013 increased as a result of dispositions ($0.1 billion) and organic
revenue growth ($0.1 billion), partially offset by lower gains
($0.1 billion) and higher impairments. The decrease in net earn-
ings resulted primarily from lower gains ($0.1 billion), partially
offset by core increases and dispositions.
Energy Financial Services 2012 revenues increased 23% and
net earnings decreased 2% compared with 2011. Revenues in
2012 increased primarily as a result of organic revenue growth
($0.3 billion), including the consolidation of an entity involved in
power generating activities and asset sales by investees, and
higher gains.
GECAS 2013 revenues increased 1% and net earnings
decreased 27% compared with 2012. Revenues in 2013 increased
as a result of lower fi nance lease impairments and higher gains.
The decrease in net earnings resulted primarily from higher
equipment leased to others (ELTO) impairments ($0.3 billion)
related to our operating lease portfolio of commercial aircraft,
and core decreases, partially offset by higher gains.
GECAS 2012 revenues increased 1% and net earnings
increased 6% compared with 2011. Revenues in 2012 increased
as a result of organic revenue growth ($0.2 billion) and higher
gains, partially offset by higher impairments ($0.2 billion). The
increase in net earnings resulted primarily from core increases
($0.1 billion) and higher gains, partially offset by higher impair-
ments ($0.1 billion).
CORPORATE ITEMS AND ELIMINATIONS
(In millions) 2013 2012 2011
REVENUES
NBCU/NBCU LLC $ 1,528 $ 1,615 $ 5,686
Gains (losses) on disposed or
held for sale businesses 453 186 —
Eliminations and other (3,605) (3,292) (2,693)
Total $ (1,624) $ (1,491) $ 2,993
OPERATING PROFIT (COST)
NBCU/NBCU LLC $ 1,528 $ 1,615 $ 4,535
Gains (losses) on disposed or
held for sale businesses 447 186 —
Principal retirement plans (a) (3,222) (3,098) (1,898)
Unallocated corporate and
other costs (5,053) (3,544) (2,925)
Total $ (6,300) $ (4,841) $ (288)
(a) Included non-operating pension income (cost) for our principal pension plans
(non-GAAP) of $(2.6) billion, $(2.1) billion and $(1.1) billion in 2013, 2012 and 2011,
respectively, which includes expected return on plan assets, interest costs and
non-cash amortization of actuarial gains and losses.
Revenues in 2013 decreased $0.1 billion from 2012. This decrease
was primarily a result of $0.1 billion lower income related to the
operations and disposition of NBCU LLC, a $0.1 billion pre-tax loss
related to the impairment of an investment in a Brazilian com-
pany and $0.2 billion of lower revenues related to a plant that was
sold in 2012, partially offset by $0.3 billion of higher gains from
disposed businesses. The higher gains from disposed businesses
refl ect the net effect of $0.5 billion of gains from industrial busi-
ness dispositions in 2013 compared with a $0.3 billion gain on
joint venture formation and a $0.1 billion loss on sale of a plant
in 2012.
Operating costs in 2013 increased $1.5 billion from 2012.
Costs increased primarily as a result of $1.3 billion of higher
restructuring and other charges, $0.2 billion of higher GECC
preferred stock dividends, $0.1 billion of higher principal retire-
ment plan costs, $0.1 billion of lower NBCU-related income and
$0.1 billion of impairment referred to above, partially offset by
$0.3 billion of higher gains on disposed businesses.
Revenues decreased $4.5 billion in 2012 as $4.1 billion of
lower NBCU/NBCU LLC related revenues (primarily due to the
non-repeat of the pre-tax gain on the NBCU transaction and
the deconsolidation of NBCU in 2011, partially offset by higher
earnings at NBCU LLC due to a gain on disposition in 2012) and