GE 2014 Annual Report Download - page 121

GE 2014 FORM 10-K 101
MD&A SUPPLEMENTAL INFORMATION
GE PRE-TAX EARNINGS FROM CONTINUING OPERATIONS, EXCLUDING GECC EARNINGS FROM CONTINUING
OPERATIONS AND THE CORRESPONDING EFFECTIVE TAX RATES
(Dollars in millions) 2014 2013 2012
GE earnings from continuing operations before income taxes $ 16,929 $ 17,090 $ 16,797
Less GECC earnings from continuing operations attributable to the Company 7,341 8,258 7,345
Total $ 9,588 $ 8,832 $ 9,452
GE provision for income taxes $ 1,634 $ 1,668 $ 2,013
GE effective tax rate, excluding GECC earnings 17.0 % 18.9 % 21.3 %
RECONCILIATION OF U.S. FEDERAL STATUTORY INCOME TAX RATE TO GE EFFECTIVE TAX RATE, EXCLUDING
GECC EARNINGS
2014 2013 2012
U.S. federal statutor
y
income tax rate 35.0 % 35.0 % 35.0 %
Reduction in rate resultin
g
from
Tax on
g
lobal activities includin
g
ex
p
orts
(
13.9
)
(
7.9
)
(
7.6
)
U.S. business credits
(
1.1
)
(
2.8
)
(
1.2
)
All other – net
(
3.0
)
(
5.4
)
(
4.9
)
(
18.0
)
(
16.1
)
(
13.7
)
GE effective tax rate
,
excludin
g
GECC earnin
g
s 17.0 % 18.9 % 21.3 %
We believe that the GE effective tax rate is best analyzed in relation to GE earnings before income taxes excluding the GECC
net earnings from continuing operations, as GE tax expense does not include taxes on GECC earnings. Management believes
that in addition to the Consolidated and GECC tax rates shown in Note 14 to the consolidated financial statements in this Form
10-K Report, this supplemental measure provides investors with useful information as it presents the GE effective tax rate that
can be used in comparing the GE results to other non-financial services businesses.