GE 2015 Annual Report Download - page 128

MD&A SUPPLEMENTAL INFORMATION
100 GE 2015 FORM 10-K
OPERATING EARNINGS AND OPERATING EPS
(
In millions
;
exce
p
t earnin
g
s
p
er share
)
2015 2014 2013
Earnin
g
s from continuin
g
operations attributable to GE
common shareowners $ 1,663 $ 9,535 $ 7,618
A
d
j
ustment
(
net of tax
)
: non-operatin
g
pension costs
(
income
)
1,797 1,378 1,705
O
p
eratin
g
earnin
g
s $ 3,460 $ 10,913 $ 9,323
Earnin
g
s per share ± diluted
(
a
)
Continuin
g
earnin
g
s per share $ 0.17 $ 0.94 $ 0.74
A
d
j
ustment
(
net of tax
)
: non-operatin
g
pension costs
(
income
)
0.18 0.14 0.17
O
p
eratin
g
earnin
g
s
p
er share $ 0.35 $ 1.08 $ 0.90
(a) Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.
INDUSTRIAL OPERATING EARNINGS
(Dollars in millions) 2015 2014 2013
Earnin
g
s from continuin
g
operations attributable to GE common shareowners $ 1,663 $ 9,535 $ 7,618
A
d
j
ustments
(
net of tax
)
: non-operatin
g
pension costs
(
income
)
1,797 1,378 1,705
O
p
eratin
g
earnin
g
s 3,460 10,913 9,323
Less GE Capital earnin
g
s
(
loss
)
from continuin
g
operations attributable to the Compan
y
(
7,654
)
1,532 699
Less effect of GE Capital preferred stock dividends
(
330
)
(
322
)
(
298
)
Operatin
g
earnin
g
s excludin
g
GE Capital earnin
g
s
(
loss
)
from continuin
g
operations
and the effect of GE Capital preferred stock dividends
(
Industrial operatin
g
earnin
g
s
)
$ 11,443 $ 9,705 $ 8,922
Operating earnings excludes non-service-related pension costs of our principal pension plans comprising interest cost, expected return
on plan assets and amortization of actuarial gains/losses. The service cost, prior service cost and curtailment loss components of our
principal pension plans are included in operating earnings. We believe that these components of pension cost better reflect the ongoing
service-related costs of providing pension benefits to our employees. As such, we believe that our measure of operating earnings
provides management and investors with a useful measure of the operational results of our business. Other components of GAAP
pension cost are mainly driven by capital allocation decisions and market performance, and we manage these separately from the
operational performance of our businesses. Neither GAAP nor operating pension costs are necessarily indicative of the current or future
cash flow requirements related to our pension plan. We also believe that this measure, considered along with the corresponding GAAP
measure, provides management and investors with additional information for comparison of our operating results to the operating
results of other companies. We believe that presenting operating earnings separately for our industrial businesses also provides
management and investors with useful information about the relative size of our industrial and financial services businesses in relation
to the total company.
100 GE 2015 FORM 10-K