GE 2014 Annual Report Download - page 90

70 GE 2014 FORM 10-K
MD&A STATEMENT OF FINANCIAL POSITION
STATEMENT OF FINANCIAL POSITION
Because GE and GECC share certain significant elements of their Statements of Financial Position, the following discussion
addresses significant captions in the consolidated statement. Within the following discussions, however, we distinguish
between GE and GECC activities in order to permit meaningful analysis of each individual consolidating statement.
MAJOR CHANGES IN OUR FINANCIAL POSITION DURING 2014
x GE Cash increased $2.2 billion driven by the following:
- $15.2 billion of GE cash flows from operating activities
- $3.0 billion senior unsecured debt issuance
- $0.6 billion from business dispositions
- $(8.9) billion dividends to shareowners
- $(2.2) billion used to buyback treasury stock under our share repurchase program
- $(2.1) billion used to acquire businesses
For additional information on GE Cash, see the Statement of Cash Flows section within the MD&A of this Form 10-K.
x Investment securities increased $3.9 billion reflecting purchases of U.S. government and federal agency securities at
Synchrony Financial and higher net unrealized gains in U.S. Corporate and State and Municipal securities driven by lower
interest rates in the U.S. See Note 3 to the consolidated financial statements in this Form 10-K Report.
- Pre-tax, other-than-temporary impairment losses (OTTI) recognized in earnings were $0.4 billion and $0.8 billion in
2014 and 2013, respectively. The 2014 amount primarily relates to other-than temporary impairments on equity
securities, corporate debt securities, commercial and residential mortgage-backed securities (CMBS), residential
mortgage-backed securities (RMBS) and asset-backed securities (ABS). The 2013 amount primarily related to credit
losses on corporate debt securities and other-than-temporary impairment on equity securities.
- Pre-tax, OTTI recognized in accumulated other comprehensive income were insignificant amounts in both 2014 and
2013.
x GECC Financing receivables-net decreased $16.0 billion. See the following Financing Receivables section for
additional information.
x GE All other assets increased $1.0 billion primarily due to an increase in contract costs and estimated earnings at our
Power & Water and Aviation businesses of $1.5 billion, partially offset by the reclassification of Appliances and Signaling
balances to assets of businesses held for sale of $0.5 billion.
x GECC All other assets decreased $3.5 billion as a result of sales of certain real estate investments of $3.4 billion, a net
decrease in equity and cost method investments of $1.5 billion and a net decrease in advances to suppliers of $0.9 billion,
partially offset by a net increase in assets held for sale of $2.3 billion.
x Deferred income taxes increased $2.3 billion primarily due to an increased deferred tax asset as a result of the
increased postretirement benefit liabilities, partially offset by the impact of the adoption of a new accounting standard,
which reduced our deferred tax asset balance. See Note 1 to the consolidated financial statements in this Form 10-K
Report.
x GE borrowings increased $3.0 billion. GE completed issuances of $3.0 billion of senior unsecured debt with maturities
up to 30 years and reclassified $2.0 billion of long-term borrowings to short-term borrowings during the year.
x GECC borrowings decreased $31.0 billion. GECC had net repayments on these borrowings of $24.9 billion during the
year, along with a net $9.1 billion reduction in the balances driven by the strengthening of the U.S. dollar against all major
currencies.
x Bank deposits increased $9.5 billion primarily due to increases at our banks of $12.6 billion, including Synchrony
Financial of $9.2 billion, partially offset by the reclassification of Budapest Bank deposits to liabilities of businesses held
for sale of $1.9 billion.