GE 2013 Annual Report Download - page 48

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46 GE 2013 ANNUAL REPORT
$0.1 billion of pre-tax losses related to the sale of a plant in the
U.K. were partially offset by $0.3 billion of gains on the formation
of a joint venture at Aviation.
Operating costs in 2012 increased $4.6 billion from 2011.
Costs increased primarily as a result of $2.9 billion of lower NBCU/
NBCU LLC related earnings (primarily due to the non-repeat of
the 2011 gain related to the NBCU transaction, partially offset
by earnings at NBCU LLC due to a gain on disposition in 2012),
$1.2 billion of higher costs of our principal retirement plans and
$0.4 billion of higher research and development spending and
global corporate costs, partially offset by $0.2 billion of lower
restructuring and other charges.
Certain amounts included in Corporate items and eliminations
cost are not allocated to GE operating segments because they are
excluded from the measurement of their operating performance
for internal purposes. These costs include certain restructur-
ing and other charges, technology and product development
costs and acquisition-related costs. For 2013, these amounts
totaled $2.4 billion, including Power & Water ($0.4 billion), Oil
& Gas ($0.3 billion), Energy Management ($0.2 billion), Aviation
($0.6 billion), Healthcare ($0.6 billion), Transportation ($0.1 billion)
and Appliances & Lighting ($0.2 billion). In 2013, Corporate items
and eliminations also included $0.5 billion of gains from busi-
ness dispositions including Power & Water ($0.1 billion), Oil & Gas
($0.1 billion) and Healthcare ($0.2 billion).
For 2012, these amounts totaled $1.5 billion, including
Power & Water ($0.2 billion), Oil & Gas ($0.1 billion), Energy
Management ($0.2 billion), Aviation ($0.3 billion), Healthcare
($0.5 billion), Transportation ($0.1 billion) and Appliances &
Lighting ($0.1 billion). In 2012, Corporate items and eliminations
also included $0.3 billion of gains related to formation of a joint
venture at Aviation.
For 2011, these amounts totaled $1.5 billion, including
Power & Water ($0.2 billion), Oil & Gas ($0.3 billion), Energy
Management ($0.2 billion), Aviation ($0.2 billion), Healthcare
($0.4 billion), Transportation ($0.1 billion) and Appliances &
Lighting ($0.1 billion).
DISCONTINUED OPERATIONS
(In millions) 2013 2012 2011
Earnings (loss) from discontinued
operations, net of taxes $ (2,120) $ (983) $ 29
Discontinued operations primarily comprised GE Money Japan,
WMC, Consumer RV Marine, Consumer Mexico, Consumer
Singapore, Australian Home Lending, Consumer Ireland, CLL
Trailer Services and Consumer Russia. Associated results of oper-
ations, fi nancial position and cash fl ows are separately reported
as discontinued operations for all periods presented.
In 2013, loss from discontinued operations, net of taxes,
refl ected a $1.6 billion after-tax effect of incremental reserves,
primarily related to an agreement to extinguish our loss-sharing
arrangement for excess interest claims associated with the 2008
sale of GE Money Japan, a $0.2 billion after-tax effect of incre-
mental reserves related to retained representation and warranty
obligations to repurchase previously sold loans on the 2007 sale
of WMC and a $0.2 billion after-tax loss on the planned disposal of
Consumer Russia.
In 2012, loss from discontinued operations, net of taxes,
primarily refl ected a $0.6 billion after-tax effect of incremental
reserves for excess interest claims related to our loss-sharing
arrangement on the 2008 sale of GE Money Japan, a $0.3 billion
after-tax effect of incremental reserves related to retained repre-
sentation and warranty obligations to repurchase previously sold
loans on the 2007 sale of WMC and a $0.2 billion loss (including
a $0.1 billion loss on disposal) related to Consumer Ireland, par-
tially offset by a $0.1 billion tax benefi t related to the resolution
with the IRS regarding the tax treatment of the 2007 sale of our
Plastics business.
In 2011, earnings from discontinued operations, net of taxes,
included a $0.3 billion gain on disposal related to the sale of
Consumer Singapore and $0.1 billion earnings from operations at
Consumer Russia, partially offset by a $0.2 billion after-tax effect
of incremental reserves for excess interest claims related to our
loss-sharing arrangement on the 2008 sale of GE Money Japan
and a $0.2 billion loss from operations at Consumer Ireland.
For additional information related to discontinued operations,
see Note 2.
Geographic Operations
Our global activities span all geographic regions and primarily
encompass manufacturing for local and export markets, import
and sale of products produced in other regions, leasing of air-
craft, sourcing for our plants domiciled in other global regions
and provision of fi nancial services within these regional econo-
mies. Thus, when countries or regions experience currency and/
or economic stress, we often have increased exposure to certain
risks, but also often have new opportunities that include, among
other things, more opportunities for expansion of industrial and
fi nancial services activities through purchases of companies or
assets at reduced prices and lower U.S. debt fi nancing costs.
Revenues are classifi ed according to the region to which prod-
ucts and services are sold. For purposes of this analysis, the U.S.
is presented separately from the remainder of the Americas. We
classify certain assets that cannot meaningfully be associated
with specifi c geographic areas as “Other Global” for this purpose.
GEOGRAPHIC REVENUES
(In billions) 2013 2012 2011
U.S. $ 68.6 $ 70.5 $ 69.9
Europe 25.3 26.7 28.2
Pacific Basin 25.5 24.4 23.2
Americas 13.1 13.2 13.2
Middle East and Africa 13.5 11.9 12.0
Total $ 146.0 $ 146.7 $ 146.5