GE 2015 Annual Report Download - page 232

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FINANCIAL STATEMENTS COST INFORMATION
204 GE 2015 FORM 10-K
NOTE 26. COST INFORMATION
RESEARCH & DEVELOPMENT
We conduct research and development (R&D) activities to continually enhance our existing products and services, develop new product
and services to meet our FXVWRPHU¶V changing needs and requirements, and address new market opportunities.
Research and development expenses are classified in cost of goods and services sold in the Statement of Earnings. In addition,
research and development funding from customers, principally the U.S. government, is recorded as an offset to such costs. We also
enter into research and development arrangements with unrelated investors, which are generally formed through partnerships and
consolidated within *(¶V financial statements. Research and development funded through consolidated partnerships is classified within
net earnings/loss attributable to noncontrolling interests.
,QPLOOLRQV
2015 2014 2013
Total R&D
$
5,278
$
5,273
$
5,461
Less customer funded R&D
(
principall
y
the U.S. Government
)
(
803
)
(
721
)
(
711
)
Less partner funded R&D
(
226
)
(
319
)
(
107
)
GE funded R&D
$
4,249
$
4,233
$
4,643
COLLABORATIVE ARRANGEMENTS
Our businesses enter into collaborative arrangements primarily with manufacturers and suppliers of components used to build and
maintain certain engines, under which GE and these participants share in risks and rewards of these product programs. *(¶V payments
to participants are recorded as cost of services sold ($788 million, $873 million and $820 million for the years 2015, 2014 and 2013,
respectively) or as cost of goods sold ($2,736 million, $2,660 million and $2,613 million for the years 2015, 2014 and 2013,
respectively).
RENTAL EXPENSE
Rental expense under operating leases is shown below.
(
In millions
)
2015 2014 2013
GE $ 1,258 $ 1,356 $ 1,380
GE Capital 107 123 124
1,365 1,479 1,504
Eliminations (169) (223) (198)
Total $ 1,196 $ 1,256 $ 1,306
At December 31, 2015, minimum rental commitments under noncancellable operating leases aggregated $4,946 million and $310
million for GE and GE Capital, respectively. Amounts payable over the next five years follow.
(In millions) 2016 2017 2018
2019 2020
GE
$
909
$
819
$
699
$
615
$
547
GE Capital 29 24 20 19 18
938 843 719 634 565
Eliminations (144) (136) (128) (115) (109)
Total
$
794
$
707
$
591
$
519
$
456
204 GE 2015 FORM 10-K