GE 2015 Annual Report Download - page 53

MD&A
GE 2015 FORM 10-K 25
x Industrial operating profit margin ± Industrial segment profit plus corporate items and eliminations (excluding gains, restructuring
and pre-tax non-operating pension costs) divided by industrial segment revenues plus corporate items and eliminations (excluding
gains and GE-GE Capital eliminations).
x Industrial return on total capital (Industrial ROTC) ± earnings from continuing operations attributable to GE common
shareowners less GE Capital earnings from continuing operations plus GE after-tax interest, divided by average Industrial
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x Industrial segment gross margin ± industrial segment sales less industrial segment cost of sales.
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excludes the effects of discontinued operations and is calculated on an annual basis using a five-point average.
x Non-operating pension costs ± comprise the expected return on plan assets, interest cost on benefit obligations and net actuarial
gain (loss) amortization for our principal pension plans.
x Operating earnings ± GE earnings from continuing operations attributable to common shareowners excluding the impact of non-
operating pension costs.
x Operating earnings per share ± unless otherwise indicated, when we refer to operating earnings per share, it is the diluted per-
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x Operating pension costs ± comprise the service cost of benefits earned, prior service cost amortization and curtailment loss for
our principal pension plans.
x Organic revenues ± revenues excluding the effects of acquisitions, dispositions and foreign currency exchange.
x Product services ± for purposes of the financial statement display of sales and costs of sales in our Statement of Earnings,
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including other services activities. In our MD&A section of this report, we refer to sales under product services agreements and
sales of both goods (such as spare parts and equipment upgrades) and related services (such as monitoring, maintenance and
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x Product services agreements ± contractual commitments, with multiple-year terms, to provide specified services for products in
our Power, Renewable Energy, Oil & Gas, Aviation and Transportation installed base ± for example, monitoring, maintenance,
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x Revenues ± unless otherwise indicatHGZHUHIHUWRFDSWLRQVVXFKDV³UHYHQXHVDQGRWKHULQFRPH´VLPSO\DVUHYHQXHV
x Segment profit ± refers to the operating profit of the industrial segments and the net earnings of the Financial Services segment.
See the Segment Operations section within the MD&A for a description of the basis for segment profits.
x Shared Services ± sharing of business processes in order to standardize and consolidate services to provide value to the
businesses in the form of simplified processes, reduced overall costs and increased service performance.
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