GE 2010 Annual Report Download - page 129

GE 2010 ANNUAL REPORT 127
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segment called Home & Business Solutions that includes the
Appliances and Lighting businesses from our previous Consumer &
Industrial segment and the retained portion of the GE Fanuc
Intelligent Platforms business of our previous Enterprise Solutions
business (formerly within our Technology Infrastructure segment).
In addition, the Industrial business of our previous Consumer &
Industrial segment and the Sensing & Inspection Technologies and
Digital Energy businesses of Enterprise Solutions are now part of
the Energy business within the Energy Infrastructure segment. The
Security business of Enterprise Solutions is reported in Corporate
Items and Eliminations prior to its sale in the first quarter of 2010.
Also, effective January 1, 2010, the Capital Finance segment was
renamed GE Capital and includes all of the continuing operations
of General Electric Capital Corporation. In addition, the
Transportation Financial Services business, previously reported
in GECAS, is included in CLL and our Consumer business in Italy,
previously reported in Consumer, is included in CLL.
A description of our operating segments as of December 31,
2010, can be found below, and details of segment profit by oper-
ating segment can be found in the Summary of Operating
Segments table in Management’s Discussion and Analysis.
Energy Infrastructure
Power plant products and services, including design, installation,
operation and maintenance services are sold into global markets.
Gas, steam and aeroderivative turbines, generators, combined
cycle systems, controls and related services, including total asset
optimization solutions, equipment upgrades and long-term main-
tenance service agreements are sold to power generation and
other industrial customers. Renewable energy solutions include
wind turbines and solar technology. Water treatment services and
equipment include specialty chemical treatment programs, water
purification equipment, mobile treatment systems and desalina-
tion processes. Energy offers integrated solutions using sensors
for temperature, pressure, moisture, gas and flow rate as well as
non-destructive testing inspection equipment, including radio-
graphic, ultrasonic, remote visual and eddy current. In addition,
it provides protection and control, communications, power sens-
ing and power quality products and services that increase the
reliability of electrical power networks and critical equipment and
offering wireless data transmission. Electrical equipment
and control products include power panels, switchgear and
circuit breakers.
The Oil & Gas business sells surface and subsea drilling and
production systems including blowout preventers, equipment for
floating production platforms, compressors, turbines, turbo-
expanders and high pressure reactors to national, international
and independent oil and gas companies. Services include equip-
ment overhauls and upgrades, pipeline inspection and integrity
services, remote monitoring and diagnostic, and contractual
service agreements.
Note 27.
Intercompany Transactions
Effects of transactions between related companies are made on
an arms-length basis, are eliminated and consist primarily of
GECS dividends to GE or capital contributions from GE to GECS;
GE customer receivables sold to GECS; GECS services for trade
receivables management and material procurement; buildings
and equipment (including automobiles) leased between GE and
GECS; information technology (IT) and other services sold to GECS
by GE; aircraft engines manufactured by GE that are installed on
aircraft purchased by GECS from third-party producers for lease
to others; and various investments, loans and allocations of
GE corporate overhead costs.
These intercompany transactions are reported in the GE and
GECS columns of our financial statements, but are eliminated in
deriving our consolidated financial statements. Effects of these
eliminations on our consolidated cash flows from operating,
investing and financing activities include the following. Net
decrease (increase) in GE customer receivables sold to GECS of
$81 million, $(157) million and $90 million have been eliminated
from consolidated cash from operating and investing activities at
December 31, 2010, 2009 and 2008, respectively. Capital contribu-
tions from GE to GECS of $9,500 million and $5,500 million have
been eliminated from consolidated cash from investing and
financing activities at December 31, 2009 and 2008, respectively.
There were no such capital contributions at December 31, 2010.
GECS dividends to GE of $2,351 million have been eliminated from
consolidated cash from operating and financing activities at
December 31, 2008. There were no such dividends at Decem-
ber 31, 2010 and 2009, respectively. Eliminations of intercompany
borrowings (includes GE investment in GECS short-term borrow-
ings, such as commercial paper) of $293 million, $715 million and
$(471) million have been eliminated from financing activities at
December 31, 2010, 2009 and 2008, respectively. Other reclassifi-
cations and eliminations of $(205) million, $741 million and
$(188) million have been eliminated from consolidated cash from
operating activities and $107 million, $(817) million and $(320) mil-
lion have been eliminated from consolidated cash from investing
activities at December 31, 2010, 2009 and 2008, respectively.
Note 28.
Operating Segments
Basis for Presentation
Our operating businesses are organized based on the nature of
markets and customers. Segment accounting policies are the
same as described in Note 1. Segment results for our financial
services businesses reflect the discrete tax effect of transactions.
Effective January 1, 2010, we reorganized our segments to
better align our Consumer & Industrial and Energy businesses for
growth. As a result of this reorganization, we created a new