GE 2014 Annual Report Download - page 118

98 GE 2014 FORM 10-K
MD&A SUPPLEMENTAL INFORMATION
OPERATING AND NON-OPERATING PENSION COSTS (INCOME)
(
In millions
)
201
4
2013 2012
Service cost for benefits earned $ 1,205 $ 1,535 $ 1,387
Prior service cost amortization 214 246 279
Curtailment loss 65 - -
Operating pension costs 1,484 1,781 1,666
Expected return on plan assets (3,190) (3,500) (3,768)
Interest cost on benefit obligations 2,745 2,460 2,479
Net actuarial loss amortization 2,565 3,664 3,421
Non-operating pension costs (income) 2,120 2,624 2,132
Total principal pension plans costs $ 3,604 $ 4,405 $ 3,798
We have provided the operating and non-operating components of cost for our principal pension plans. Operating pension
costs comprise the service cost of benefits earned, prior service cost amortization and curtailment loss for our principal
pension plans. Non-operating pension costs (income) comprise the expected return on plan assets, interest cost on benefit
obligations and net actuarial loss amortization for our principal pension plans. We believe that the operating components of
pension costs better reflects the ongoing service-related costs of providing pension benefits to our employees. We believe that
the operating and non-operating components of cost for our principal pension plans, considered along with the corresponding
GAAP measure, provide management and investors with additional information for comparison of our pension plan costs and
operating results with the pension plan costs and operating results of other companies.
AVERAGE GE SHAREOWNERS' EQUITY, EXCLUDING EFFECTS OF DISCONTINUED OPERATIONS(a)
December 31 (In millions) 201
4
 2013 2012 2011 2010
Average GE shareowners’ equity(a) $ 131,914 $ 124,501 $ 120,411 $ 122,289 $ 116,179
Less the effects of the average net investment
in discontinued operations (167) (167) (478) 4,924 13,819
A
verage GE shareowners’ equity, excluding
effects of discontinued operations(b) $ 132,081 $ 124,668 $ 120,889 $ 117,365 $ 102,360
(a) On an annual basis, calculated using a five-point average.
(b) Used for computing return on average GE shareowners’ equity and return on average total capital invested (ROTC).
Our ROTC calculation excludes earnings (losses) of discontinued operations from the numerator because GAAP requires us
to display those earnings (losses) in the Statement of Earnings. Our calculation of average GE shareowners’ equity may not
be directly comparable to similarly titled measures reported by other companies. We believe that it is a clearer way to measure
the ongoing trend in return on total capital for the continuing operations of our businesses given the extent that discontinued
operations have affected our reported results. We believe that this results in a more relevant measure for management and
investors to evaluate performance of our continuing operations, on a consistent basis, and to evaluate and compare the
performance of our continuing operations with the ongoing operations of other businesses and companies.
Definitions indicating how the above-named ratios are calculated using average GE shareowners’ equity, excluding effects of
discontinued operations, can be found in the Glossary.