GE 2011 Annual Report Download - page 116

114 GE 2011 ANNUAL REPORT
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GE’s selling, general and administrative expenses totaled
$17,556 million in 2011, $16,340 million in 2010 and $14,841 million
in 2009. The increase in 2011 is primarily due to higher pension
costs, increased acquisition-related costs, higher research and
development spending and increased costs to support global
growth, partially offset by the disposition of NBCU and lower
restructuring and other charges. The increase in 2010 is primarily
due to higher research and development spending, increased
selling expenses to support global growth and higher pension
costs, partially offset by lower restructuring and other charges.
Our Aviation segment enters into collaborative arrangements
with manufacturers and suppliers of components used to build and
maintain certain engines, under which GE and these participants
share in risks and rewards of these product programs. Under these
arrangements, participation fees earned and recorded as other
income totaled $12 million, $4 million and $1 million for the years
2011, 2010 and 2009, respectively. Payments to participants are
recorded as costs of services sold ($612 million, $563 million and
$504 million for the years 2011, 2010 and 2009, respectively) or as
cost of goods sold ($1,996 million, $1,751 million and $1,731 million
for the years 2011, 2010 and 2009, respectively).
Note 20.
Earnings Per Share Information
2011 2010 2009
(In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Diluted Basic
AMOUNTS ATTRIBUTABLE TO THE COMPANY:
CONSOLIDATED
Earnings from continuing operations for per-share calculation (a)(b) $14,053 $14,053 $12,492 $12,492 $10,777 $10,776
Preferred stock dividends declared (c) (1,031) (1,031) (300) (300) (300) (300)
Earnings from continuing operations attributable to common
shareowners for per-share calculation (a)(b) 13,022 13,021 12,192 12,192 10,477 10,476
Earnings (loss) from discontinued operations for per-share calculation (a)(b) 78 78 (868) (869) 220 219
Net earnings attributable to common shareowners for
per-share calculation (a)(b) $13,098 $13,098 $11,322 $11,322 $10,695 $10,694
AVERAGE EQUIVALENT SHARES
Shares of GE common stock outstanding 10,591 10,591 10,661 10,661 10,614 10,614
Employee compensation-related shares, including stock options 29 — 17— 1—
Total average equivalent shares 10,620 10,591 10,678 10,661 10,615 10,614
PER-SHARE AMOUNTS
Earnings from continuing operations $ 1.23 $ 1.23 $ 1.14 $ 1.14 $ 0.99 $ 0.99
Earnings (loss) from discontinued operations 0.01 0.01 (0.08) (0.08) 0.02 0.02
Net earnings 1.23 1.24 1.06 1.06 1.01 1.01
Our unvested restricted stock unit awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities and, therefore, are
included in the computation of earnings per share pursuant to the two-class method. Application of this treatment has an insignificant effect.
(a) Included an insignificant amount of dividend equivalents in each of the three years presented.
(b) Included an insignificant amount related to accretion of redeemable securities in 2010 and 2009.
(c) Included $806 million related to the redemption of our 10% cumulative preferred stock in 2011. See Note 15.
For the years ended December 31, 2011, 2010 and 2009, there were approximately 321 million, 325 million and 328 million, respectively, of
outstanding stock awards that were not included in the computation of diluted earnings per share because their effect was antidilutive.
Earnings-per-share amounts are computed independently for earnings from continuing operations, earnings (loss) from discontinued
operations and net earnings. As a result, the sum of per-share amounts from continuing operations and discontinued operations may not
equal the total per-share amounts for net earnings.