GE 2014 Annual Report Download - page 41

GE 2014 FORM 10-K 21
ABOUT GENERAL ELECTRIC
NON-GAAP FINANCIAL MEASURES
In the accompanying analysis of financial information, we sometimes use information derived from consolidated financial data
but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles
(GAAP). Certain of these data are considered “non-GAAP financial measures” under the SEC rules. Specifically, we have
referred, in various sections of this Form 10-K Report, to:
x Operating earnings and operating EPS
x Industrial operating earnings
x Industrial segment organic revenue growth
x Industrial cash flows from operating activities (Industrial CFOA)
x Operating and non-operating pension costs (income)
x GE pre-tax earnings from continuing operations, excluding GECC earnings from continuing operations and the
corresponding effective tax rates
x GE Capital ending net investment (ENI), excluding liquidity
x GECC Tier 1 common ratio estimate
The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP
financial measures are included in the “Supplemental Information” section within the MD&A of this Form 10-K Report. Non-
GAAP financial measures referred to in this Form 10-K Report are designated with an asterisk (*).
COMPETITIVE CONDITIONS AND ENVIRONMENT
In virtually all of our global business activities, we encounter aggressive and able competition. In many instances, the
competitive climate is characterized by changing technology that requires continuing research and development. With respect
to manufacturing operations, we believe that, in general, we are one of the leading firms in most of the major industries in
which we participate. The businesses in which General Electric Capital Corporation (GECC) engages are subject to
competition from various types of financial institutions, including commercial banks, thrifts, investment banks, broker-dealers,
credit unions, leasing companies, consumer loan companies, independent finance companies, finance companies associated
with manufacturers and insurance and reinsurance companies.
As a diverse global company, we are affected by world economies, instability in certain regions, commodity prices, such as the
price of oil, and foreign currency volatility. Other factors impacting our business include:
x product development cycles for many of our products are long and product quality and efficiency are critical to success,
x research and development expenditures are important to our business and
x many of our products are subject to a number of regulatory standards.
These factors are discussed throughout Management’s Discussion and Analysis of Financial Condition and Results of
Operations.