GE 2015 Annual Report Download - page 92

MD&A SEGMENT OPERATIONS | CAPITAL
64 GE 2015 FORM 10-K
x Other Capital net earnings decreased by $9.3 billion primarily as a result of the GE Capital Exit Plan as follows:
x Higher tax expenses of $7.0 billion primarily related to expected repatriation of foreign earnings and write-off of
deferred tax assets related to the GE Capital Exit Plan.
x Higher treasury operation expenses of $1.0 billion reflecting excess interest expense, including costs associated with
the debt exchange completed in October 2015 and derivative activities that reduce or eliminate interest rate, currency
or market risk between financial assets and liabilities. We expect to continue to have excess interest costs in 2016 as
asset sales outpace our debt maturities. We may engage in liability management actions, such as buying back debt,
based on market and economic conditions.
x The 2015 $0.8 billion impairment of a coal-fired power plant in the U.S. related to a decision in the fourth quarter to
exit the investment over time.
COMMENTARY: 2014 ± 2013
Capital revenues increased $0.1 billion as a result of organic revenue growth and higher gains, partially offset by the effects of
dispositions.
x Within Capital, Verticals revenues increased as a result of organic revenue growth ($0.2 billion) and higher gains ($0.2 billion)
offset by the effects of dispositions ($0.2 billion) and higher impairments ($0.1 billion).
x CLL revenues increased 2% as a result of organic revenue growth.
x EFS revenues increased by $0.2 billion, or 11%, as a result of organic revenue growth ($0.4 billion) and higher gains
($0.1 billion), partially offset by the effects of dispositions ($0.2 billion) and higher impairments ($0.2 billion).
x GECAS revenues decreased by $0.1 billion, or 2%, as a result of organic revenue declines ($0.2 billion), partially
offset by higher gains ($0.1 billion).
x Insurance revenues decreased $0.1 billion as a result of organic revenue declines ($0.1 billion).
Capital net earnings increased by $0.8 billion as a result of core increases, ELTO impairments related to our operating lease portfolio of
commercial aircraft, and higher gains, partially offset by the effects of dispositions.
x Within Capital, Verticals net earnings increased by $0.2 billion, or 14%, as a result of higher gains ($0.1 billion), ELTO
impairments ($0.1 billion) related to our operating lease portfolio of commercial aircraft, and core increases ($0.1 billion),
partially offset by the effects of dispositions ($0.1 billion).
x CLL net earnings increased slightly or 2% as a result of core increases.
x EFS net earnings decreased slightly as a result of higher impairments ($0.1 billion) and the effects of dispositions
($0.1 billion) offset by core increases ($0.1 billion) and higher gains ($0.1 billion).
x GECAS net earnings increased by $0.2 billion, or 17%, as a result of ELTO impairments ($0.2 billion) related to our
operating lease portfolio of commercial aircraft, and higher gains, partially offset by core decreases ($0.1 billion).
x Insurance net earnings increased as a result of core increases.
x Other Capital net earnings increased by $0.6 billion primarily as a result of higher tax benefits of $0.6 billion and higher
treasury operation income of $0.3 billion, partially offset by higher corporate headquarters expenses of $0.2 billion.
64 GE 2015 FORM 10-K