GE 2015 Annual Report Download - page 127

MD&A SUPPLEMENTAL INFORMATION
GE 2015 FORM 10-K 99
GE PRE-TAX EARNINGS FROM CONTINUING OPERATIONS, EXCLUDING GE CAPITAL EARNINGS FROM
CONTINUING OPERATIONS AND THE CORRESPONDING EFFECTIVE TAX RATES
(
Dollars in millions
)
2015 2014 2013
GE earnings from continuing operations before income taxes $ 3,252 $ 11,119 $ 9,531
Less GE Capital earnings from continuing operations attributable to the Company (7,672) 1,532 699
Less GE preferred dividend 18 - -
Total $ 10,906 $ 9,587 $ 8,832
GE provision for income taxes $ 1,506 $ 1,634 $ 1,667
GE effective tax rate, excluding GE Capital earnings 13.8 % 17.0 % 18.9 %
RECONCILIATION OF U.S. FEDERAL STATUTORY INCOME TAX RATE TO GE EFFECTIVE TAX RATE,
EXCLUDING GE CAPITAL EARNINGS
2015 2014 2013
U.S. federal statutor
y
income tax rate 35.0 % 35.0 % 35.0 %
Reduction in rate resultin
g
from
Tax on
g
lobal activities includin
g
exports
(
15.8
)
(
13.9
)
(
7.9
)
U.S. business credits
(
1.2
)
(
1.1
)
(
2.8
)
All other ± net
(
4.2
)
(
3.0
)
(
5.4
)
(
21.2
)
(
18.0
)
(
16.1
)
GE effective tax rate, excludin
g
GE Ca
p
ital earnin
g
s 13.8 % 17.0 % 18.9 %
We believe that the GE effective tax rate is best analyzed in relation to GE earnings before income taxes excluding the GE Capital net
earnings from continuing operations, as GE tax expense does not include taxes on GE Capital earnings. Management believes that in
addition to the Consolidated and GE Capital tax rates shown in Note 14 to the consolidated financial statements, this supplemental
measure provides investors with useful information as it presents the GE effective tax rate that can be used in comparing the GE results
to other non-financial services businesses.
GE 2015 FORM 10-K 99