GE 2015 Annual Report Download - page 52

MD&A
24 GE 2015 FORM 10-K
Prior to January 28, 2011, we operated a media company, NBC Universal, Inc. (NBCU). Effective January 28, 2011, we held a 49%
interest in a media entity that included the NBC Universal businesses (NBCU LLC). On March 19, 2013, we completed the sale of our
remaining 49% common equity interest to Comcast Corporation.
We integrate acquisitions as quickly as possible. Revenues and earnings from the date we complete the acquisition through the end of
the fourth quarter following the acquisition are considered the acquisition effect of such businesses.
Discussion of GE Capital’s total assets includes deferred income tax liabilities, which are presented within assets for purposes of our
consolidated statement of financial position presentations for this filing.
Amounts reported in billions in graphs within this report are computed based on the amounts in millions. As a result, the sum of the
components reported in billions may not equal the total amount reported in billions due to rounding. Certain columns and rows within
the tables may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in
millions.
Discussions throughout this MD&A are based on continuing operations unless otherwise noted.
The MD&A should be read in conjunction with the Financial Statements and Notes to the consolidated financial statements.
OTHER TERMS USED BY GE
x Backlog – unfilled customer orders for products and product services (expected life of contract sales for product services).
x Borrowings as a percentage of total capital invested – for GE, the sum of borrowings and mandatorily redeemable preferred
stock, divided by the sum of borrowings, mandatorily redeemable preferred stock, redeemable noncontrolling interest,
noncontrolling interests and total shareowners’ equity.
x Digital revenues – revenues related to software-enabled product upgrades, internally developed software (including Predix) and
associated hardware, and software-enabled productivity solutions. These revenues are largely generated from our operating
businesses and are included in their segment results.
x Earnings – unless otherwise indicated, we refer to captions such as “earnings from continuing operations attributable to common
shareowners” simply as earnings.
x Earnings per share (EPS) – unless otherwise indicated, when we refer to earnings per share, it is the diluted per-share amount of
“earnings from continuing operations attributable to common shareowners”.
x Ending Net Investment (ENI) – the total capital we have invested in the Financial Services business. It is the sum of short-term
borrowings, long-term borrowings and equity (excluding noncontrolling interests) adjusted for unrealized gains and losses on
investment securities and hedging instruments. Alternatively, it is the amount of assets of continuing operations less the amount of
non-interest-bearing liabilities.
x Equipment leased to others (ELTO) – rental equipment we own that is available to rent and is stated at cost less accumulated
depreciation.
x Free cash flow – GE’s cash from operating activities (continuing operations) less GE additions to property, plant and equipment,
plus GE dispositions of property, plant and equipment, which are included in cash flows from investing activities.
x GE Capital Exit Plan – our plan, announced on April 10, 2015, to reduce the size of our financial services businesses through the
sale of most of the assets of GE Capital, and to focus on continued investment and growth in our industrial businesses. Further
information on the GE Capital Exit Plan is provided in the GE Capital – The GE Capital Exit Plan section within the MD&A and Note
1 to the consolidated financial statements.
x Global Growth Organization (GGO) – organization that provides operational processes through a shared services structure for
the enabling functions: commercial, enterprise data management, finance, HR, IT, legal, supply chain and tax through a
partnership with the businesses and global functions.
x Growth markets – consist of countries/regions which are expected to grow at above average world GDP rates over the long term
and typically are resource rich and/or have large infrastructure needs. They encompass the following: Australasia; Canada; Latin
America; Middle East, North Africa and Turkey; Russia and CIS; Sub-Saharan Africa; Greater China; South Asia; South East Asia
(ASEAN).
24 GE 2015 FORM 10-K