GE 2014 Annual Report Download - page 77

GE 2014 FORM 10-K 57
MD&A SEGMENT OPERATIONS | GE CAPITAL
x Energy Financial Services 2014 net earnings decreased slightly as a result of higher impairments ($0.1 billion) and the
effects of dispositions ($0.1 billion) offset by core increases ($0.1 billion) and higher gains ($0.1 billion).
x GECAS 2014 net earnings increased by $0.2 billion, or 17%, as a result of lower equipment leased to others (ELTO)
impairments ($0.2 billion) related to our operating lease portfolio of commercial aircraft, and higher gains, partially offset
by core decreases ($0.1 billion).
COMMENTARY: 2013 – 2012
Revenues decreased 3% as a result of organic revenue declines, primarily due to lower ENI, and higher impairments, partially
offset by higher gains.
x CLL 2013 revenues decreased by $2.1 billion, or 13%, as a result of organic revenue declines ($1.2 billion), primarily due
to lower ENI ($0.8 billion), higher impairments ($0.7 billion) and the effects of dispositions ($0.1 billion).
x Consumer 2013 revenues increased by $0.4 billion, or 3%, as a result of higher gains ($0.5 billion), the effects of
dispositions ($0.3 billion) and the effects of acquisitions ($0.1 billion), partially offset by organic revenue declines ($0.4
billion).
x Real Estate 2013 revenues increased by $0.3 billion, or 7%, as a result of increases in net gains on property sales ($1.1
billion) mainly due to the sale of real estate comprising certain floors located at 30 Rockefeller Center, New York, partially
offset by organic revenue declines ($0.7 billion), primarily due to lower ENI ($0.6 billion).
x Energy Financial Services 2013 revenues increased slightly, or 1%, 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.
x GECAS 2013 revenues increased by $0.1 billion, or 1%, as a result of lower finance lease impairments and higher gains.
Segment profit increased 10% as a result of dispositions, primarily related to the sale of a portion of Cembra through an IPO
and higher gains primarily related to the sale of our remaining equity interest in Bay Bank, partially offset by higher
impairments and higher provisions for losses on financing receivables.
x CLL 2013 net earnings decreased by $0.4 billion, or 18%, reflecting higher impairments ($0.6 billion), partially offset by
the effects of dispositions ($0.1 billion).
x Consumer 2013 net earnings increased by $1.1 billion, or 35%, as a result of the sale of a portion of Cembra ($1.2
billion), higher gains ($0.3 billion) related to the sale of Bay Bank and core increases ($0.1 billion). These increases were
partially offset by higher provisions for losses on financing receivables ($0.5 billion) reflecting the use of a more granular
portfolio segmentation approach, by loss type, in determining the incurred loss period and projected net write-offs over the
next 12 months in our installment and revolving credit portfolios.
x Real Estate 2013 net earnings increased favorably as a result of core increases ($0.9 billion) including increases in net
gains on property sales ($0.7 billion) and higher tax benefits ($0.3 billion).
x Energy Financial Services 2013 net earnings decreased slightly, or 5%, as a result of lower gains ($0.1 billion), partially
offset by core increases and dispositions.
x GECAS 2013 net earnings decreased by $0.3 billion, or 27%, as a result of ELTO impairments ($0.3 billion) related to our
operating lease portfolio of commercial aircraft, and core decreases, partially offset by higher gains.
For additional information related to GE Capital segment operations, refer to the General Electric Capital Corporation annual
report on Form 10-K for the year ended December 31, 2014.