GE 2015 Annual Report Download - page 126

MD&A SUPPLEMENTAL INFORMATION
98 GE 2015 FORM 10-K
OPERATING AND NON-OPERATING PENSION COSTS (INCOME)
(
In millions
)
2015 2014 2013
Service cost for benefits earned $ 1,424 $ 1,205 $ 1,535
Prior service cost amortization 205 214 246
Curtailment loss 105 65 -
Operating pension cost 1,734 1,484 1,781
Expected return on plan assets (3,302) (3,190) (3,500)
Interest cost on benefit obligations 2,778 2,745 2,460
Net actuarial loss amortization 3,288 2,565 3,664
Non-operating pension cost 2,764 2,120 2,624
Total principal pension plans cost $ 4,498 $ 3,604 $ 4,405
We have provided the operating and non-operating components of cost for our principal pension plans. Operating pension cost
comprise the service cost of benefits earned, prior service cost amortization and curtailment loss for our principal pension plans. Non-
operating pension cost comprise the expected return on plan assets, interest cost on benefit obligations and net actuarial loss
amortization for our principal pension plans. We believe that the operating components of pension cost better reflects the ongoing
service-related cost of providing pension benefits to our employees. We believe that the operating and non-operating components of
cost for our principal pension plans, considered along with the corresponding GAAP measure, provide management and investors with
additional information for comparison of our pension plan cost and operating results with the pension plan cost and operating results of
other companies.
ADJUSTED CORPORATE COSTS
(
OPERATING
)
(In millions) 2015 2014 2013
Total Corporate Items and Eliminations $ (5,108) $ (6,225) $ (6,002)
Less non-operating pension cost (2,764) (2,120) (2,624)
Total Corporate costs (operating) $ (2,344) $ (4,105) $ (3,378)
Less, NBCU LLC, restructuring and other charges, gains and NBCU settlement (237) (1,697) (17)
A
djusted Corporate costs (operating) $ (2,107) $ (2,408) $ (3,361)
Operating corporate costs exclude non-service-related pension costs of our principal pension plans, which comprise interest costs,
expected return on plan assets and amortization of actuarial gains/losses. Service cost, prior service cost and curtailment loss
components of our principal pension plans are included in operating corporate costs. We believe that these components of pension
cost better reflect the ongoing service-related costs of providing pension benefits to our employees. Accordingly, we believe that our
measure of operating corporate costs provides management and investors with a useful measure of the operational costs incurred
outside of our businesses. We believe that this measure, considered along with the corresponding GAAP measure, provides
management and investors with additional information for comparison of our operating corporate costs to the operating corporate costs
of other companies.
We also believe that adjusting operating corporate costs to exclude the effects of items that are not closely associated with ongoing
corporate operations, such as earnings of previously divested businesses, gains and losses on disposed and held for sale businesses,
restructuring and other charges, and a settlement provides management and investors with a meaningful measure that increases the
period-to-period comparability of our ongoing corporate costs.
98 GE 2015 FORM 10-K