GE 2015 Annual Report Download - page 102

MD&A OTHER CONSOLIDATED INFORMATION
74 GE 2015 FORM 10-K
OTHER INFORMATION
To the extent non-86RSHUDWLQJLQFRPHLQFUHDVHVZHZRXOGH[SHFWWD[EHQHILWVWRLQFUHDVHVXEMHFWWRPDQDJHPHQW¶VLQWHQWLRQWR
indefinitely reinvest those earnings. Included in 2015 is a tax expense of $6.1 billion related to the expected repatriation of foreign
earnings and write-off of deferred tax assets in conjunction with the GE Capital Exit Plan.
The tax benefit from non-U.S. income taxed at a local country rather than the U.S. statutory tax rate is reported in the cDSWLRQ³7D[RQ
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A more detailed analysis of differences between the U.S. federal statutory rate and the consolidated effective rate, as well as other
information about our income tax provisions, is provided in the Critical Accounting Estimates section within the MD&A and Note 14 to
the consolidated financial statements. The nature of business activities and associated income taxes differ for GE and for GE Capital;
therefore, a separate analysis of each is presented in the paragraphs that follow.
GE EFFECTIVE TAX RATE (EXCLUDING GE CAPITAL EARNINGS)
(Dollars in billions)
We believe that the GE effective tax rate and provision for income taxes are best analyzed in relation to GE earnings before income
taxes excluding the GE Capital net earnings from continuing operations, as GE tax expense does not include taxes on GE Capital
earnings. For further information on this calculation, see the Supplemental Information section within the MD&A.
GE ETR, EXCLUDING GE CAPITAL EARNINGS* GE PROVISION (BENEFIT) FOR INCOME TAXES
2015 ± 2014 COMMENTARY
x The GE provision for income taxes decreased in 2015 because of increased benefits from lower taxed global operations ($0.2
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x The GE provision for income taxes also decreased due to increases in the benefit of audit resolutions ($0.2 billion) shown below
and deductible stock losses ($0.2 billion).
x Partially offsetting these decreases was an increase in income taxed at rates above the average tax rate ($0.5 billion).
2014 ± 2013 COMMENTARY
x The GE provision for income taxes decreased in 2014 primarily because of increased benefits from lower taxed global operations
($0.8 billion).
x That decrease was partially offset by the decrease in the benefit of audit resolutions ($0.3 billion) shown below, an increase in
income taxed at rates above the average tax rate ($0.3 billion), and the non-repeat of the 2013 benefit from the enactment of the
extension of certain U.S. business credits ($0.1 billion), discussed above.
*Non-GAAP Financial Measure
74 GE 2015 FORM 10-K