GE 2015 Annual Report Download - page 175

FINANCIAL STATEMENTS HELD FOR SALE & DISCONTINUED OPERATIONS
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reported in financial statements. The effects of applying the revised guidance will vary based upon the nature and size of future
disposal transactions. It is expected that fewer disposal transactions will meet the new criteria to be reported as discontinued
operations.
On January 1, 2014, we adopted ASU 2013-05, Foreign Currency Matters (Topic 830): 3DUHQW¶V Accounting for the Cumulative
Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a
Foreign Entity. Under the revised guidance, the entire amount of the cumulative translation adjustment associated with the foreign entity
will be released into earnings in the following circumstances: (a) the sale of a subsidiary or group of net assets within a foreign entity
that represents a complete or substantially complete liquidation of that entity, (b) the loss of a controlling financial interest in an
investment in a foreign entity, or (c) when the accounting for an investment in a foreign entity changes from the equity method to full
consolidation. The revised guidance applies prospectively to transactions or events occurring on or after January 1, 2014.
On January 1, 2014, we adopted ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss
Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Under the new guidance, an unrecognized tax benefit is required
to be presented as a reduction to a deferred tax asset if the disallowance of the tax position would reduce the available tax loss or tax
credit carryforward instead of resulting in a cash tax liability. The ASU applies prospectively to all unrecognized tax benefits that exist as
of the adoption date and reduced both deferred tax assets and income tax liabilities (including amounts reported in assets and liabilities
of discontinued operations) by $1,224 million as of January 1, 2014.
NOTE 2. BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS
NBCU
As previously disclosed, Comcast Corporation was obligated to share with us potential tax savings associated with its purchase of our
interest in NBCU LLC. During the second quarter of 2015, we recognized $450 million of pre-tax income related to the settlement of this
obligation.
ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE
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In the fourth quarter of 2015, we signed an agreement to sell our Electricity Meters business within our Energy Management segment to
Aclara Technologies, LLC and our Clarient business within our Healthcare segment to NeoGenomics, Inc. The sale of our Electricity
Meters business was completed on December 21, 2015 for proceeds of $220 million. The sale of our Clarient business was completed
on December 30, 2015 for proceeds of $255 million.
In the third quarter of 2015, we signed an agreement to sell our Intelligent Platforms Embedded Systems Products business within our
Energy Management segment to Veritas Capital. The sale was completed on December 7, 2015 for proceeds of $515 million.
In the fourth quarter of 2014, we signed an agreement to sell our Signaling business within our Transportation segment to Alstom. The
transaction closed on November 2, 2015 for proceeds of $800 million.
In the third quarter of 2014, we signed an agreement to sell our Appliances business to Electrolux. On July 1, 2015, we were notified
that the Department of Justice had initiated court proceedings seeking to enjoin the sale of Appliances to Electrolux. On December 7,
2015, we announced the termination of our agreement to sell our Appliances business to Electrolux. We received a break-up fee of
$175 million from Electrolux, which is recorded under the caption ³2WKHU LQFRPH´ in the consolidated Statement of Earnings.
On January 15, 2016, we announced the signing of a definitive agreement to sell our Appliances business with assets of $2,818 million
and liabilities of $1,409 million, to Qingdao Haier Co., Ltd. (Haier) for approximately $5,400 million. The transaction has been approved
by the board of directors of GE and Haier and remains subject to customary closing conditions, including Haier shareholder approval
and regulatory approvals. The transaction is targeted to close in mid-2016.
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