General Electric Co. (GE) | Equity Method Investments

Selected Financial Data

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General Electric Co.'s selected financial data

USD $ in millions

	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
GECS earnings from continuing operations
Investment in GECS

ROA (equity method investments only)¹	%	%	%	%	%

Source: Based on data from General Electric Co. Annual Reports

2011 Calculations

¹ ROA (equity method investments only) = 100 × GECS earnings from continuing operations ÷ Investment in GECS
= 100 × ÷ = %

Item	Description	The company
GECS earnings from continuing operations	This item represents the entity's proportionate share for the period of the net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. Such amount typically reflects adjustments similar to those made in preparing consolidated statements, including adjustments to eliminate intercompany gains and losses, and to amortize, if appropriate, any difference between cost and underlying equity in net assets of the investee at the date of investment.	General Electric Co.'s gECS earnings from continuing operations increased from 2009 to 2010 and from 2010 to 2011.
Investment in GECS	This item represents the carrying amount on the entity's balance sheet of its investment in common stock of an equity method investee. This is not an indicator of the fair value of the investment, rather it is the initial cost adjusted for the entity's share of earnings and losses of the investee, adjusted for any distributions (dividends) and other than temporary impairment losses recognized.	General Electric Co.'s investment in GECS declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level.
ROA (equity method investments only)	A profitability ratio calculated as gECS earnings from continuing operations divided by investment in GECS.	General Electric Co.'s ROA of equity method investments improved from 2009 to 2010 and from 2010 to 2011.

Summarized Financial Information

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Summarized financial information for General Electric Co.'s affiliates, subsidiaries, associates, and joint ventures

USD $ in millions

		Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	Cash and equivalents
	Investment securities
	Inventories
	Financing receivables, net
	Other GECS receivables
	Property, plant and equipment, net
	Goodwill
	Other intangible assets, net
	All other assets
	Assets of businesses held for sale
	Assets of discontinued operations
	Total assets
	Short-term borrowings
	Accounts payable, principally trade accounts
	Non-recourse borrowings of consolidated securitization entities
	Bank deposits
	Long-term borrowings
	Investment contracts, insurance liabilities and insurance annuity benefits
	All other liabilities
	Deferred income taxes
	Liabilities of businesses held for sale
	Liabilities of discontinued operations
	Total liabilities
	Common stock
	Accumulated other comprehensive income, net
	Other capital
	Retained earnings
	Shareowners’ equity
	Noncontrolling interests
	Total equity
	Total liabilities and equity
	Sales of goods
	GECS revenues from services
	GECS commercial paper interest rate swap adjustment
	Revenues
	Cost of goods sold
	Interest and other financial charges
	Investment contracts, insurance losses and insurance annuity benefits
	Provision for losses on financing receivables
	Other costs and expenses
	Costs and expenses
	Earnings (loss) from continuing operations before income taxes
	Benefit (provision) for income taxes
	Earnings from continuing operations
	Earnings (loss) from discontinued operations, net of taxes
	Net earnings
	Net earnings attributable to noncontrolling interests
	Net earnings attributable to the Company

Source: Based on data from General Electric Co. Annual Reports

Item	Description	The company
Shareowners’ equity	This item represents the disclosure of summarized financial information for unconsolidated subsidiaries and 50 percent-or-less owned entities accounted for using the equity method of accounting. If investments in common stock of corporate joint ventures or other investments accounted for under the equity method are, in the aggregate, material in relation to the financial position or results of operations of an investor, it may be necessary to present summarized information as to assets, liabilities, and results of operations of the investee, or group of investments for which combined disclosure is appropriate, either by individual financial statement caption or in groups, as appropriate. Such summarized financial information may include total equity or capital (as applicable).	Shareowners’ equity of General Electric Co.'s affiliates, subsidiaries, associates, and joint ventures declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level.
Net earnings attributable to the Company	This item represents the disclosure of summarized financial information for unconsolidated subsidiaries and 50 percent-or-less owned entities accounted for using the equity method of accounting. If investments in common stock of corporate joint ventures or other investments accounted for under the equity method are, in the aggregate, material in relation to the financial position or results of operations of an investor, it may be necessary to present summarized information as to assets of the investee, or group of investments for which combined disclosure is appropriate, either by individual financial statement caption or in groups, as appropriate. Such summarized financial information may, at a minimum, include net income or loss.	Net earnings attributable to the Company of General Electric Co.'s affiliates, subsidiaries, associates, and joint ventures increased from 2009 to 2010 and from 2010 to 2011.

Adjustments to Financial Data: Proportionate Consolidation

Recognition of General Electric Co.'s proportionate share of affiliates, subsidiaries, associates, and joint ventures assets and liabilities instead of net equity.

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General Electric Co., adjustments to financial data

USD $ in millions

	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
Weighted average percentage interest in affiliates	%	%	%	%	%
Adjustment to Total Assets
Total assets (as reported)
Less: Investment in GECS (adjustment)
Add: Total assets of affiliates (adjustment)
Total assets (adjusted)
Adjustment to Total Liabilities
Total liabilities (as reported)
Add: Total liabilities of affiliates (adjustment)
Total liabilities (adjusted)
Adjustment to Noncontrolling Interests
Noncontrolling interests (as reported)
Add: Noncontrolling interests of affiliates (adjustment)
Noncontrolling interests (adjusted)
Adjustment to Sales Revenue
Sales revenue (as reported)
Add: Revenues of affiliates (adjustment)
Sales revenue (adjusted)

Adjusted Ratios: Proportionate Consolidation (Summary)

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General Electric Co., adjusted ratios

	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
Net Profit Margin
Reported net profit margin	%	%	%	%	%
Adjusted net profit margin	%	%	%	%	%
Total Asset Turnover
Reported total asset turnover
Adjusted total asset turnover
Financial Leverage
Reported financial leverage
Adjusted financial leverage
Return on Assets (ROA)
Reported ROA	%	%	%	%	%
Adjusted ROA	%	%	%	%	%

Ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as net income divided by adjusted revenue.	General Electric Co.'s adjusted net profit margin improved from 2009 to 2010 and from 2010 to 2011.
Adjusted total asset turnover	An activity ratio calculated as adjusted total revenue divided by adjusted total assets.	General Electric Co.'s adjusted total asset turnover deteriorated from 2009 to 2010 and from 2010 to 2011.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	General Electric Co.'s adjusted financial leverage declined from 2009 to 2010 and from 2010 to 2011.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	General Electric Co.'s adjusted ROA improved from 2009 to 2010 and from 2010 to 2011.

Adjusted Net Profit Margin

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	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
As Reported
Net earnings attributable to the Company (USD $ in millions)
Sales revenue (USD $ in millions)

Net profit margin¹	%	%	%	%	%
Adjusted: from Equity Method to Proportionate Consolidation
Net earnings attributable to the Company (USD $ in millions)
Adjusted sales revenue (USD $ in millions)

Adjusted net profit margin²	%	%	%	%	%

2011 Calculations

¹ Net profit margin = 100 × Net earnings attributable to the Company ÷ Sales revenue
= 100 × ÷ = %

² Adjusted net profit margin = 100 × Net earnings attributable to the Company ÷ Adjusted sales revenue
= 100 × ÷ = %

Ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as net income divided by adjusted revenue.	General Electric Co.'s adjusted net profit margin improved from 2009 to 2010 and from 2010 to 2011.

Adjusted Total Asset Turnover

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		Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	As Reported
	Sales revenue (USD $ in millions)
	Total assets (USD $ in millions)

	Total asset turnover¹
	Adjusted: from Equity Method to Proportionate Consolidation
	Adjusted sales revenue (USD $ in millions)
	Adjusted total assets (USD $ in millions)

	Adjusted total asset turnover²

2011 Calculations

¹ Total asset turnover = Sales revenue ÷ Total assets
= ÷ =

² Adjusted total asset turnover = Adjusted sales revenue ÷ Adjusted total assets
= ÷ =

Ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as adjusted total revenue divided by adjusted total assets.	General Electric Co.'s adjusted total asset turnover deteriorated from 2009 to 2010 and from 2010 to 2011.

Adjusted Financial Leverage

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		Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	As Reported
	Total assets (USD $ in millions)
	GE shareowners’ equity (USD $ in millions)

	Financial leverage¹
	Adjusted: from Equity Method to Proportionate Consolidation
	Adjusted total assets (USD $ in millions)
	GE shareowners’ equity (USD $ in millions)

	Adjusted financial leverage²

2011 Calculations

¹ Financial leverage = Total assets ÷ GE shareowners’ equity
= ÷ =

² Adjusted financial leverage = Adjusted total assets ÷ GE shareowners’ equity
= ÷ =

Ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	General Electric Co.'s adjusted financial leverage declined from 2009 to 2010 and from 2010 to 2011.

Adjusted Return On Assets (ROA)

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	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
As Reported
Net earnings attributable to the Company (USD $ in millions)
Total assets (USD $ in millions)

ROA¹	%	%	%	%	%
Adjusted: from Equity Method to Proportionate Consolidation
Net earnings attributable to the Company (USD $ in millions)
Adjusted total assets (USD $ in millions)

Adjusted ROA²	%	%	%	%	%

¹ ROA = 100 × Net earnings attributable to the Company ÷ Total assets
= 100 × ÷ = %

² Adjusted ROA = 100 × Net earnings attributable to the Company ÷ Adjusted total assets
= 100 × ÷ = %

Ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	General Electric Co.'s adjusted ROA improved from 2009 to 2010 and from 2010 to 2011.

General Electric Co. (GE) | Analysis of Equity Method Investment

Selected Financial Data

Summarized Financial Information

Adjustments to Financial Data: Proportionate Consolidation

Adjusted Ratios: Proportionate Consolidation (Summary)

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return On Assets (ROA)

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