GE 2014 Annual Report Download - page 81

GE 2014 FORM 10-K 61
MD&A DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS
Discontinued operations primarily comprises GE Money Japan (our Japanese personal loan business, Lake, and our
Japanese mortgage and card businesses, excluding our investment in GE Nissen Credit Co., Ltd.), our U.S. mortgage
business (WMC), our CLL trailer services business in Europe (CLL Trailer Services), our Consumer banking business in
Russia (Consumer Russia) and our Consumer mortgage lending business in Ireland (Consumer Ireland). All of these
operations were previously reported in the GE Capital segment.
Associated results of operations, financial position and cash flows are separately reported as discontinued operations for all
periods presented.
FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS
(In millions) 20142013 2012
Earnings (loss) from discontinued operations, net of taxes $ (112) $ (2,120) $ (983)
The 2014 loss from discontinued operations, net of taxes, primarily reflected the following:
x $0.2 billion after-tax effect of incremental reserves related to retained representation and warranty obligations to
repurchase previously sold loans on the 2007 sale of WMC.
x 2014 losses were partially offset by a $0.1 billion tax benefit related to the extinguishment of our loss-sharing arrangement
for excess interest claims associated with the 2008 sale of GE Money Japan.
The 2013 loss from discontinued operations, net of taxes, primarily reflected the following:
x $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,
x $0.2 billion after-tax effect of incremental reserves related to retained representation and warranty obligations to
repurchase previously sold loans on the 2007 sale of WMC, and
x $0.2 billion after-tax loss on the planned disposal of Consumer Russia.
The 2012 loss from discontinued operations, net of taxes, primarily reflected the following:
x $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,
x $0.3 billion after-tax effect of incremental reserves related to retained representation and warranty obligations to
repurchase previously sold loans on the 2007 sale of WMC, and
x $0.2 billion loss (including a $0.1 billion loss on disposal) related to Consumer Ireland.
x 2012 losses were partially offset by a $0.1 billion tax benefit related to the resolution with the Internal Revenue Service
regarding the tax treatment of the 2007 sale of our Plastics business.
For additional information related to discontinued operations, see Note 2 to the consolidated financial statements in this Form
10-K Report.