GE 2015 Annual Report Download - page 63

MD&A SEGMENT OPERATIONS
GE 2015 FORM 10-K 35
SEGMENT OPERATIONS
SEGMENT CHANGES
x The Power segment (formerly Power & Water) was affected through the splitting out of the Renewable Energy business, principally
the onshore wind business.
x A new segment named Renewable Energy was created that includes *(¶VOHJDF\RQVKRUHZLQGEXVLQHVVDQGWKH wind and hydro
businesses acquired from Alstom.
x Energy Management was affected through the formation of a joint venture with Alstom.
x Additionally, a portion of the Distributed Power business that provides turbines for oil & gas applications was realigned from the
Power segment to the Oil & Gas segment.
x Transportation sold its Signaling business to Alstom.
x The remaining segments, Healthcare, Aviation, and Appliances & Lighting were not affected by any significant segment
changes in 2015.
x The financial services segment, previously referred to as GE Capital, is now called Capital. GE Capital now refers to GECC or its
successor, GECGH.
REVENUES AND PROFIT
Segment revenues include revenues and other income related to the segment.
Segment profit is determined based on internal performance measures used by the Chief Executive Officer (CEO) to assess the
performance of each business in a given period. In connection with that assessment, the CEO may exclude matters such as charges
for restructuring; rationalization and other similar expenses; acquisition costs and other related charges; technology and product
development costs; certain gains and losses from acquisitions or dispositions; and litigation settlements or other charges, for which
responsibility preceded the current management team.
Segment profit excludes results reported as discontinued operations and material accounting changes. Segment profit also excludes
the portion of earnings or loss attributable to noncontrolling interests of consolidated subsidiaries, and as such only includes the portion
of earnings or loss attributable to our share of the consolidated earnings or loss of consolidated subsidiaries.
Segment profit excludes or includes interest and other financial charges and income taxes according to how a particular segmeQW¶V
management is measured:
x Interest and other financial charges, income taxes and GE preferred stock dividends are excluded in determining segment profit
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x Interest and other financial charges, income taxes and GE Capital preferred stock dividends are included in determining segment
profit (which wHVRPHWLPHVUHIHUWRDV³QHWHDUQLQJV´IRUWKH&DSLWDOVHJPHQW
Certain corporate costs, such as shared services, employee benefits and information technology are allocated to our segments based
on usage. A portion of the remaining corporate costs is allRFDWHGEDVHGRQHDFKVHJPHQW¶VUHODWLYHQHWFRVWRIRSHUDWLRQV
ALSTOM - ACQUISITION IMPACTING MULTIPLE SEGMENTS
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transaction followed the regulatory approval of the deal in over 20 countries and regions including the EU, U.S., China, India, Japan and
%UD]LO7KHSXUFKDVHSULFHZDV¼ELOOLRQDSSUR[LPDWHO\ELOOLRQ7KHDFTXLVLWLRQDQGDOOLDQFHVZLWK$OVWRPDIIHFWHG our Power,
Renewable Energy and Energy Management segments. See Note 8 to the consolidated financial statements for further information.
For the two months that GE owned Alstom in 2015, the entity contributed $(0.2) billion of operating profit to the industrial segments and
$(0.2) billion of operating profit at Corporate, resulting in an overall pre-tax loss of $(0.4) billion. Offsetting the pre-tax loss was $0.4
billion of increased tax benefits principally related to the integration of our existing services busLQHVVZLWK$OVWRP¶VVHUYLFHVEXVLQHVV
GE 2015 FORM 10-K 35