United States Securities and Exchange Commission FORM 10-K
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United States Securities and Exchange Commission WASHINGTON, D.C. 20549 FORM 10-K ☑ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2019 Commission file number 001-00035 GENERAL ELECTRIC COMPANY (Exact name of registrant as specified in its charter) New York 14-0689340 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 5 Necco Street, Boston MA 02210 (Address of principal executive offices) (Zip Code) (Registrant’s telephone number, including area code) (617) 443-3000 Securities Registered Pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, par value $0.06 per share GE New York Stock Exchange Floating Rate Notes due 2020 GE 20E New York Stock Exchange 0.375% Notes due 2022 GE 22A New York Stock Exchange 1.250% Notes due 2023 GE 23E New York Stock Exchange 0.875% Notes due 2025 GE 25 New York Stock Exchange 1.875% Notes due 2027 GE 27E New York Stock Exchange 1.500% Notes due 2029 GE 29 New York Stock Exchange 7 1/2% Guaranteed Subordinated Notes due 2035 GE /35 New York Stock Exchange 2.125% Notes due 2037 GE 37 New York Stock Exchange Securities Registered Pursuant to Section 12(g) of the Act: (Title of class) Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes þ No ¨ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No þ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No þ The aggregate market value of the outstanding common equity of the registrant not held by affiliates as of the last business day of the registrant’s most recently completed second fiscal quarter was at least $90.1 billion. There were 8,740,232,000 shares of voting common stock with a par value of $0.06 outstanding at January 31, 2020. DOCUMENTS INCORPORATED BY REFERENCE The definitive proxy statement relating to the registrant’s Annual Meeting of Shareholders, to be held May 5, 2020, is incorporated by reference into Part III to the extent described therein. TABLE OF CONTENTS Page About General Electric 3 Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) 4 Consolidated Results 4 Segment Operations 8 Corporate Items and Eliminations 20 Other Consolidated Information 22 Capital Resources and Liquidity 25 Critical Accounting Estimates 34 Other Items 37 Non-GAAP Financial Measures 43 Other Financial Data 49 Risk Factors 50 Legal Proceedings 57 Management and Auditor's Reports 58 Audited Financial Statements and Notes 62 Statement of Earnings (Loss) 62 Statement of Financial Position 64 Statement of Cash Flows 66 Statement of Comprehensive Income (Loss) 68 Statement of Changes in Shareholders' Equity 68 Note 1 Basis of Presentation and Summary of Significant Accounting Policies 69 Note 2 Businesses Held for Sale and Discontinued Operations 74 Note 3 Investment Securities 77 Note 4 Current and Long-term Receivables 78 Note 5 Financing Receivables and Allowances 80 Note 6 Inventories 81 Note 7 Property, Plant and Equipment and Operating Leases 81 Note 8 Goodwill and Other Intangible Assets 82 Note 9 Contract and Other Deferred Assets & Progress Collections and Deferred Income 84 Note 10 All Other Assets 85 Note 11 Borrowings 86 Note 12 Insurance Liabilities and Annuity Benefits 87 Note 13 Postretirement Benefit Plans 89 Note 14 Current and All Other Liabilities 94 Note 15 Income Taxes 94 Note 16 Shareholders’ Equity 98 Note 17 Share-Based Compensation 99 Note 18 Earnings Per Share Information 100 Note 19 Other Income 100 Note 20 Fair Value Measurements 101 Note 21 Financial Instruments 102 Note 22 Variable Interest Entities 104 Note 23 Commitments, Guarantees, Product Warranties and Other Loss Contingencies 105 Note 24 Cash Flows Information 110 Note 25 Intercompany Transactions 112 Note 26 Operating Segments 113 Note 27 Guarantor Financial Information 115 Note 28 Baker Hughes Summarized Financial Information 119 Note 29 Quarterly Information (unaudited) 120 Forward-Looking Statements 121 Directors, Executive Officers and Corporate Governance 122 Exhibits and Financial Statement Schedules 123 Form 10-K Cross Reference Index 126 Signatures 127 ABOUT GENERAL ELECTRIC ABOUT GENERAL ELECTRIC General Electric Company (General Electric or the Company) is a high-tech industrial company that operates worldwide through its four industrial segments, Power, Renewable Energy, Aviation and Healthcare, and its financial services segment, Capital. The Power segment offers technologies, solutions, and services related to energy production, including gas and steam turbines, generators, and power generation services. The Renewable Energy segment provides wind turbine platforms, hardware and software, offshore wind turbines, solutions, products and services to hydropower industry, blades for onshore and offshore wind turbines, and high voltage equipment. The Aviation segment provides jet engines and turboprops for commercial and military airframes, maintenance, component repair, and overhaul services, as well as replacement parts, additive machines and materials, and engineering services. The Healthcare segment provides healthcare technologies in medical imaging, digital solutions, patient monitoring and diagnostics, drug discovery, biopharmaceutical manufacturing technologies and performance enhancement solutions. The Capital segment leases and finances aircraft, aircraft engines and helicopters, provides financial and underwriting solutions, and manages our run-off insurance operations. See the Consolidated Results section of Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 2 to the consolidated financial statements for information regarding our recent business portfolio actions. We serve customers in over 170 countries. Manufacturing and service operations are carried out at 94 manufacturing plants located in 30 states in the United States and Puerto Rico and at 190 manufacturing plants located in 37 other countries. In all of our global business activities, we encounter aggressive and able competition. In many instances, the competitive climate is characterized by changing technology that requires continuing research and development. With respect to manufacturing operations, we believe that, in general, we are one of the leading firms in most of the major industries in which we participate. The businesses in which GE Capital engages are subject to competition from various types of financial institutions. As a diverse global company, we are affected by world economies, instability in certain regions, commodity prices, foreign currency volatility and policies regarding trade and imports. See the Segment Operations section within Management's Discussion and Analysis (MD&A) for further information. Other factors impacting our business include: • product development cycles for many of our products are long and product quality and efficiency are critical to success, • research and development expenditures are important to our business, • many of our products are subject to a number of regulatory standards and • changing end markets, including shifts in energy sources and demand and the impact of technology changes. At year-end 2019, General Electric Company and consolidated affiliates employed approximately 205,000 people, of whom approximately 70,000 were employed in the United States. Our Power, Renewable Energy, Aviation, Healthcare, and Capital segments employed approximately 38,000, 43,000, 52,000, 56,000 and 2,000 people, respectively. Our Corporate business employed approximately 13,000 employees. Approximately 6,750 GE and GE affiliate manufacturing and service employees in the United States (U.S.)are represented for collective bargaining purposes by a union. A majority of such employees are represented by union locals that are affiliated with the IUE-CWA, The Industrial Division of the Communication Workers of America, AFL-CIO, CLC. In August 2019, most of GE's U.S. unions, including the IUE-CWA, ratified new four-year labor agreements to replace the current agreements. General Electric’s address is 1 River Road, Schenectady, NY 12345-6999; we also maintain executive offices at 5 Necco Street, Boston, MA 02210. GE’s Internet address at www.ge.com, Investor Relations website at www.ge.com/investor-relations and our corporate blog at www.gereports.com, as well as GE’s Facebook page, Twitter accounts and other social media, including @GE_Reports, contain a significant amount of information about GE, including financial and other information for investors.