GE 2015 Annual Report Download - page 51

MD&A
GE 2015 FORM 10-K 23
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (MD&A)
PRESENTATION
The consolidated financial statements of General Electric Company (the Company) combine the industrial manufacturing and services
businesses of General Electric Company (GE) with the financial services businesses of General Electric Capital Corporation, and its
successor GE Capital Global Holdings, LLC (GE Capital or Financial Services).
We believe that investors will gain a better understanding of our company if they understand how we measure and talk about our
results. Because of the diversity in our businesses, we present our financial statements in a three-column format, which allows
investors to see our industrial operations separately from our Financial Services operations. We believe that this provides useful
information to investors. When used in this report, unless otherwise indicated by the context, we use the terms to mean the following:
x General Electric or the Company – the parent company, General Electric Company.
x GE – the adding together of all affiliates other than GE Capital, whose continuing operations are presented on a one-line basis,
giving effect to the elimination of transactions among such affiliates. Transactions between GE and GE Capital have not been
eliminated at the GE level. We present the results of GE in the center column of our consolidated statements of earnings, financial
position and cash flows. An example of a GE metric is GE cash from operating activities (GE CFOA).
x General Electric Capital Corporation or GECC – the adding together of all affiliates of GECC, giving effect to the elimination of
transactions among such affiliates.
x GE Capital Global Holdings, LLC or GECGH – the adding together of all affiliates of GECGH, giving effect to the elimination of
transactions among such affiliates.
x GE Capital or Financial Services – refers to GECC, or its successor GECGH, and is the adding together of all affiliates of GE
Capital giving effect to the elimination of transactions among such affiliates. We present the results of GE Capital in the right-side
column of our consolidated statements of earnings, financial position and cash flows.
x GE consolidated – the adding together of GE and GE Capital, giving effect to the elimination of transactions between the two. We
present the results of GE consolidated in the left-side column of our consolidated statements of earnings, financial position and
cash flows.
x Industrial – GE excluding the continuing operations of GE Capital. We believe that this provides investors with a view as to the
results of our industrial businesses and corporate items. An example of an Industrial metric is Industrial CFOA, which is GE CFOA
excluding the effects of dividends from GE Capital.
x Industrial segment – the sum of our eight industrial reporting segments, without giving effect to the elimination of transactions
among such segments. This provides investors with a view as to the results of our industrial segments, without inter-segment
eliminations and corporate items. An example of an industrial segment metric is industrial segment revenue growth.
x Total segment – the sum of our eight industrial segments and one financial services segment, without giving effect to the
elimination of transactions among such segments. This provides investors with a view as to the results of all of our segments,
without inter-segment eliminations and corporate items.
x GE Capital Verticals or Verticals – the adding together of GE Capital businesses that we expect to retain, principally its vertical
financing businesses—GE Capital Aviation Services (GECAS), Energy Financial Services (EFS) and Healthcare Equipment
Finance—that relate to the Company’s core industrial domain and other operations, including Working Capital Solutions, our run-off
insurance activities, and allocated corporate costs.
GE 2015 FORM 10-K 23