GE 2015 Annual Report Download - page 113

MD&A FINANCIAL RESOURCES AND LIQUIDITY
GE 2015 FORM 10-K 85
GE Capital cash used for financing activities increased $7.0 billion primarily due to the following:
x Higher net repayments of borrowings, consisting primarily of lower issuances, of $9.2 billion.
x Lower dividends paid to GE totaling $3.0 billion and $6.0 billion, including special dividends of $1.0 billion and $4.1 billion in 2014
and 2013, respectively.
INTERCOMPANY TRANSACTIONS AND ELIMINATIONS
Effects of transactions between related companies are made on an arms-length basis, are eliminated and consist primarily of GE
Capital dividends to GE; GE customer receivables sold to GE Capital; GE Capital services for trade receivables management and
material procurement; buildings and equipment leased between GE and GE Capital; information technology (IT) and other services sold
to GE Capital by GE; aircraft engines manufactured by GE that are installed on aircraft purchased by GE Capital from third-party
producers for lease to others; expenses related to parent-subsidiary pension plans, and various investments, loans and allocations of
GE corporate overhead costs.
GE sells customer receivables to GE Capital in part to fund the growth of our industrial businesses. These transactions can result in
cash generation or cash use. During any given period, GE receives cash from the sale of receivables to GE Capital. It also foregoes
collection of cash on receivables sold. The incremental amount of cash received from sales of receivables in excess of the cash GE
would have otherwise collected had those receivables not been sold, represents the cash generated or used in the period relating to
this activity. The incremental cash generated in GE CFOA from selling these receivables to GE Capital increased *(¶V CFOA by $1.6
billion, $2.2 billion and $0.1 billion in 2015, 2014 and 2013, respectively.
See Note 23 to the consolidated financial statements for additional information about the eliminations of intercompany transactions
between GE and GE Capital.
CONTRACTUAL OBLIGATIONS
As defined by reporting regulations, our contractual obligations for future payments as of December 31, 2015, follow.
Payments due by period
2021 and
(
In billions
)
Total 2016 2017-2018 2019-2020 thereafte
r
Borrowings (Note 10) $ 198.3 $ 50.8 $ 43.0 $ 28.2 $ 76.3
Interest on borrowin
g
s 69.1 5.1 8.0 6.4 49.6
Purchase obli
g
ations
(
a
)(
b
)
50.0 20.9 10.0 13.1 6.1
Insurance liabilities
(
Note 11
)(
c
)
11.5 1.2 2.1 1.6 6.7
Operatin
g
lease obli
g
ations
(
Note 26
)
4.2 0.8 1.3 1.0 1.1
Other liabilities
(
d
)
79.9 5.2 12.1 9.8 52.8
Contractual obli
g
ations of discontinued operations
(
e
)
46.5 46.5 - - -
(a) Included all take-or-pay arrangements, capital expenditures, contractual commitments to purchase equipment that will be leased to others,
contractual commitments related to factoring agreements, software acquisition/license commitments, contractual minimum programming
commitments and any contractually required cash payments for acquisitions.
(b) Excluded funding commitments entered into in the ordinary course of business. For further information on these commitments and other
guarantees, see Note 20 and 22 to the consolidated financial statements.
(c) Included contracts with reasonably determinable cash flows such as structured settlements, guaranteed investment contracts, and certain property
and casualty contracts, and excluded long-term care, variable annuity and other life insurance contracts.
(d) Included an estimate of future expected funding requirements related to our postretirement benefit plans and included liabilities for unrecognized
tax benefits. Because their future cash outflows are uncertain, the following non-current liabilities are excluded from the table above: derivatives,
deferred revenue and other sundry items. For further information on certain of these items, see Notes 14, 20 and 27 to the consolidated financial
statements.
(e) Included payments for other liabilities.
GE 2015 FORM 10-K 85