GE 2015 Annual Report Download - page 111

MD&A FINANCIAL RESOURCES AND LIQUIDITY
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The most significant source of cash in GE CFOA is customer-related activities, the largest of which is collecting cash resulting from
product or services sales. See the Intercompany Transactions and Eliminations section for information related to transactions between
GE and GE Capital. The most significant operating use of cash is to pay our suppliers, employees, tax authorities and others for a wide
range of material and services. Dividends from GE Capital represent the distribution of a portion of GE Capital retained earnings, and
are distinct from cash from continuing operations within the GE Capital businesses.
2015±2014 COMMENTARY
GE cash from operating activities increased $1.2 billion primarily due to the following:
x A decrease of operating cash collections of $0.4 billion to $109.3 billion in 2015, primarily due to lower GE segment revenues from
sales of goods and services.
x A decrease of operating cash payments of $0.3 billion to $97.2 billion in 2015, primarily driven by decreased inventory spend.
x Further, GE Capital paid dividends totaling $4.3 billion and $3.0 billion to GE in 2015 and 2014, respectively.
GE cash used for investing activities increased $6.9 billion primarily due to the following:
x Higher business acquisition activity of $8.3 billion is primarily driven by the 2015 acquisition of Alstom of $10.1 billion. This is
partially offset by the 2014 acquisitions of certain Thermo Fisher Scientific Inc. life-VFLHQFHEXVLQHVVHVIRUELOOLRQ&DPHURQ¶V
Reciprocating Compression Division for $0.6 billion and API Healthcare (API) for $0.3 billion.
x This is partially offset by $1.1 billion higher proceeds from principal business dispositions and $0.3 billion higher proceeds from
dispositions of property, plant and equipment.
GE cash used for financing activities increased $1.5 billion primarily due to the following:
x The 2015 repayment of $2.0 billion of GE unsecured notes. This is partially offset by the 2015 issuance of unsecured notes of $3.4
billion compared with $3.0 billion in 2014.
2014±2013 COMMENTARY
GE cash from operating activities increased $0.9 billion primarily due to the following:
x An increase of operating cash collections of $4.9 billion to $109.7 billion in 2014. This increase is consistent with comparable GE
segment revenue increases from sales of goods and services and higher collections on current receivables. These increases were
partially offset by a decrease in progress collections.
x This increase is partially offset by an increase of operating cash payments of $1.0 billion to $97.5 billion in 2014 consistent with
cost and expense increases, which was partially offset by the non-recurrence of payments made in 2013, including NBCU LLC
deal-related tax payments, and payouts under our long-term incentive plan.
x Further, GE Capital paid dividends totaling $3.0 billion and $6.0 billion to GE in 2014 and 2013, respectively.
GE cash used for investing activities decreased $10.7 billion primarily due to the following:
x 2013 proceeds of $16.7 billion from the sale of our remaining 49% common equity interest in NBCU LLC to Comcast Corporation.
x This was partially offset by lower business acquisition activity of $5.9 billion primarily driven by the 2014 acquisitions of certain
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and API Healthcare (API) for $0.3 billion compared with the 2013 acquisitions of Avio for $4.4 billion and Lufkin for $3.3 billion.
GE cash used for financing activities decreased $14.2 billion primarily due to the following:
x A decrease in net repurchases of GE shares for treasury in accordance with our share repurchase program of $8.1 billion.
x The 2013 repayment of $5.0 billion of GE unsecured notes compared with the issuance of $3.0 billion of unsecured notes in 2014.
x These decreases were partially offset by an increase in the dividends paid to shareowners of $1.0 billion.
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