ML19345G998
| ML19345G998 | |
| Person / Time | |
|---|---|
| Site: | 07001308 |
| Issue date: | 04/09/1981 |
| From: | Dawson D GENERAL ELECTRIC CO. |
| To: | Cunningham R NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS) |
| Shared Package | |
| ML19345G999 | List: |
| References | |
| 18896, DMD-537, NUDOCS 8104230002 | |
| Download: ML19345G998 (33) | |
Text
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'76-1308 O. I N I! k A i. h i I i r i i; ; [-
J LEAR FUEL AND SERVICES GENERAL ELECTRIC COMPANY,175 CURTNER AVE., SAN JOSE, CALIF 03NIA 95125 D1 VISION Mail Code 861 SPENT FUEL SERVICES OPERATIC DMD-537 Docket No. 70-1308 Materials License SNM-1265 April 9,1981 Office of Nuclear Material Safety & Safeguards Attn:
R.E. Cunningham, Director Division of Fuel Cycle & Material Safety U.S. Nuclear Regulatory Commission Washington, D.C.
20555
SUBJECT:
1980 FINANCIAL INFORMATION; AMENDED APPLICATION FOR RENEWAL OF MATERIALS LICENSE N0. SNM-1265 Gentlemen:
He have enclosed the General Electric Company 1980 Annual Report and the Securities and Exchange Commission (SEC) Form 10 v for 1980. These two documents were filed with the SEC as a single document.
This submission is in accordance with statements in our letter of February 4, 1981. Please call H.A. Rogers (408*925-6496) if there are questions regarding this submittal.
Respectfully, GENERAL ELECTRIC COMPANY I
8d
<C h m Pr.h D.M. Dawson, Manager
<D'5 Licensing & Transportation p/
/
Y sfgg M ik k W
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DMD:HAR:bn k'***ar 5
Enclosure 7
1* ~-a 1810423 0 coa-O
s NOTICE OF DISTRIBUTION to SERVICE LIST - DOCKET NO. 70-1308 In the matter cf General Electric's application for rene al of Materials License No. SN"-1265, copies of the documents discussed in the attache: letter have been forwarded to the law firm of Meyer, Brown and Platt, 231 Scuta.
LaSalle, Chicago, IL.
60604, counsel for General Electric Co cany, for transmittal to the service list as shown belcw:
Andrew C. Goodh:pe, Esq., Chairran Atomic safety and Licensing Atemic Safety and Licensing Board Board Panel 3320 Estelle Terrace U.S. Nuclear Regulatory Comristion Wheaton, Maryland 20906 Washington. 0.C.
20555 Dr. Linda W. Little Decketing anc Service Sectier.
Atomic Safety and Licensing Board Office of the Secretary 5000 Hermi age Drive U.S. Nuclear Regulatory Ccarission t
Raleigh, horth Carolina 27612 Washingten, D.C.
20555 Dr. Ferrest J. Remick Everett J. Quigley At -ic Safety and Licensing Beard RR1, Bex 373 305 East Hamilton Avenue Kankakee, IL 60g31 State College, Pennsylvania 16201
. Atomic Safety and Licensing Appeal Panel U.S. Nuclear Regulatory cone.ission Washington, D.C.
20555 Bridget Little R re-Essex, IL 60935 Susan N. Sekuler, Esq.
Ge:rge William Wol'f, Esq.
Office of the Attorney General 188 West Randolph Street Suite 2315 Chicago, IL 60601 Marjorie Ulman Rothschild, Esq.
United States Nuclear Regulatory Commission Washington, D.C.
20555 List 3/28/80 A 1532S
FORM 10-K SECURITIES AND EXCHANGE COMMISSION
'4ASHINGTON, D.C. 20549 ANNUAL REPORT PURSUANT TO SECTION 13 0F THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1980 Commission file Immber 1-35 GENERAL ELECTRIC COMPANY (Exact nane of registrant as specified in charter)
New York 14-0689340 (State of incorporation or organization)
(I.R.S. Employer Identification No.)
1 River Road, Schenectady, New York 12345 3135 Easton Turnpike, Fairfield, Conn.
06431 203/373-2431 (Addresses of principal executive offices)
(Zip Code)
(Telephone No.)
SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:
Name of each exchange on Title of each class which registered comon stock, par valus $2.50 per share New York Stock 2xchange Boston Stock Exchange 5.30% Sinking Fund Debentures Due 1992 New York Stock Exchange 7 1/2 % Debentures Due 1996 New York Stock Exchange 8 1/2 : Debentures Due 2004 New York Stock Exchange At February 28, 1981, 227,762,000 shares of common stock with a par value of
$2.50 were outsennrlfng. These shares, which constitute all of the voting stock of the registrant had an aggregate market value on March 23, 1981 of $15.3 billion.
DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant's Annn=1 Report to Share Owners for the fiscal year ended December 31, 1980 are incorporatsd by reference in Part II.
The definitive proxy statement relating to the registrant's Anmaal MSeting of Share owners to be held April 22, 1981 is incorporated by reference in Part III.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the regis trant was required to file such reports), and (2) has been subject to such filing requirements for the pasc 90 days. Tes x No toone%wJ t
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PART I Item 1. Business General General Electric (CE) is one of the largest and most diversified industrial corporations in the world.
From the time of its incorporation in 1892, GE has been engaged in developing, manufacturing and marketing a wide variety of products for the generation, transnission, distribution, control, and utilization of electricity.
Over the years, development and application of related and new technologies has broadened considerably the scope of the Company's activities. In addition, in December 1976 the Company acquired Utah Internatio-al Inc. (Utah) which became a wholly owned af filiate of General Electric.
Utah's principd business is the extraction and sale of natural resources, mainly abroad. Utah's principal product is metallurgical (coking) coal mined in Australia, where Utah is a leading producer.
With respect to manufacturing operations, it is believed, in general, that General Electric has a leadership position (i.e., number one or two) in most major markets served.
Aggressive and able competition, often highly concentrated and worldwide, is encountered in all areas of its business activity. In many instances, the competitive climate for these operations is characterized by patterns of changing technology requiring continuing research and development commitments and by capital intensive customer needs and producer requirements. With respect to natural resources, the marketing of minerals is influenced by the location, product quality, price, accessibility of competitors' mines, and general economic and ' political conditions.
In general, development of mineral resources involves extensive exploration programs and commitments to capital expenditures prior to commencement of l
operations.
General Electric has substantial export sales from the United States. In addition General Z1ectric has majority or minority interests in a number of l
foreign concanies engaged primarily in manufacturing electrical and related products and in distributing operations outside the United States.
Through Utah, GE alw has sajority or minority interes ts in several companies primaril c_. gaged in mining operations in foreign countries.
Unless otherwise indicated by the centext, the terms "GE",
- General Elatric" and " Company" are used on the basis of consolidation described on pee 37 of the GE 1980 Annual Report to share owners.
Unless otherwise indicated by the context, the terms " Utah International Inc.",
" Utah" and
" Utah International" mean Utah International Inc., as well as all of its
" affiliates" ar.d " associated companies" as those terms are used on page 37 of the GE 1980 Annual Raport to Snare Owners.
Industry Segments General Electric's cperations are highly decentralized and are organized into six Sectors, each of which is a macro-business / industry.
Each Sector is both a =anagement and planning level organization and consists of a number of 2
e Strategic 3usiness Uni:s (330s), generally of differing sizes (designated as
- groups, divisions, or depart =e nts ),
reporting to a
Sector Execu:ive.
"!:dustry se gment s
- for fi:ancial reporting purposes a::d as used in this report are based on the Sector organization vi:h certain odifica:io:s :o conform with Financial Accounting S a dards Board require =ents.
A s a ry description of each of :he industry segmen:s folicws.
Consumer Products and Services General Electric manufac:ures, distributes and services one of the larges: and broadest lines of electrical consumer goods in the world.
Consumer Produe:s a:d Services consists of major appliances, air conditioning equipment, lighting products, housewares and audio produe:s, television receivers, and broadcasti:g and cablevision services.
It also includes service operaticas for major appliances, air conditioners, GE television receivers, and housewares and audio products.
There is substantial variation among the kinds of cus:caers se rved, the technology and marke:i=g me: hods employed and General Elec:ric's relative market posizions.
General Electric Credit Corporation, which is organizationally responsible to :his Sector, is com:sented on separately below.
Markets for consumer products can be adversely affected by fluctuations in consumer disposable income, availability of consumer credi:, and housi:3 construe:1on, and profitability can be adversely influenced by the effects cf inflation on production ecs:s and fac: ors which may 1:hibi: price. increases.
In addi: ion, these produe:s must increasingly be desig=ed for opti=al energy use and :o conform with a growing mul:1plicity of federal and state produe:
regulations.
Mafor Appliances include both General Electric and Ho: point brands of kitchen and laundry equipment (such as ref rigera: ors, electric ranges, freezers, dishwashers, disposers, washers a=d dryers), as well as some appliances for resale under private brands. Sales :o a variety of retail outlets constitute a sajer portion of these sales. The =ajori n of such
- sales, particularly laundry produe:s and refrige rators,
are for replacement.
~he other principal sarket for sajor appliances is building contrac: ors for ins tallation in new dwellings.
Compeci:ica is van active in all products and comes from a wide variety of manufac:urers and suppliers.
A major factor influenci q competition is price, with the resul: tha: i=po rtant emphasis is placed on M M sizi:g manufacturi g l
costs.
Other significant fac: ors include quality, features offered, l
innovation and appliance service capabili:7 I
Air Conditioning equipment consists of room ad central types, including heat pumps.
Ecom air conditioners are ge:erally sold through retail channels and central air conditioners are more oriented toward new cons uction markets.
(General Electric does =ct compete for la rge,
specially desil,=ed applica: ions).
Cc= peti: ion is s:rong is :he =ajo r markets served by this business, which is influenced by de=ographic l
changrs as well as seasonal factors. Product quality and reliabili:7 are signifa.4 : in aistai=ing cespe:1:17e posi: ion, and energy edficiency is of increasing i=portance.
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Lighting products include a wide variety of lamps - incandescent, fluorescent, photo, miniature and high intensity - as well as luminaires for street lighting and residential use.
Consequently, markets and i
cus tome rs are extremely varied, ranging from household use rs served through retail outlets to original equipment manufacturers, such as the autonocive industry.
Competition arises from a relatively small number of major firms and is based principally on price, effective distribution and product innovation. The nature of the products and market diversity make the lighting business somewhat less sensitive to economic cycles
~
than other consumer businesses.
Housewares and Audio Products and Services include small appliances for personal care, garment care and food preparation; home security devices; and radio and related products.
The makeup of the product six is closely linked to changes in consumer life styles.
With many manufacturers in the. field, price competition (and consequently cost control) and product innovation, as well as merchandising skills, are important facto rs.
Television Receivers are sold principally in the domestic market.
Industry profitability has been generally poor in recent years.
General Electric experiences strong competition from several. large producars, some of which have a stronger market position in these products than General Electric.
Broadcasting and cablevision operations, which are subject to various government regulations, include 3 AM and 5 FM radio stations, 3 VHF T7 stations and 13 cablevision systems.
General Electric Credit Corporation General Electric Credit Corporation (GECC),
a wholly-owned nonconsolidated finance affiliate, primarily engages in consumer, commercial and industrial financing.
It also engages, to a lesser degree, in the life insurance and fire and casualty insurance businesses.
l Financing activities include retail time sales and dealer inventory financing of home products (major appliances, television sets, furniture and other home furnishings); residential financing (principally time sales, and dealer inventory financing of mobile homes and, to a lesser degree, time sales, and dealer inventory financing of recreational vehicles); family financial services (direct cash, home equity and home modernization loans, accounts receivable financing for small personal loan companies and time sales financing of marine products and home moderni:ation); automo bile leasing; commercial and industrial equipment sales financing provided through time sales, loans and leases; indus trial loans and leases; commercial loan financing (revolving credit and accounts receivable financing); and real estate financing.
?roducts of companies other than General Electric
(
constitute virtually all products financed by GECC.
Substantially all of the products financed by GECC are new products.
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GECC's activities are subject to a variety of federal and state reguistions including, at the federal level, the Consumer Credit Protection Act, the Equal Credit Opportunity Act and certain regulations i'ssued by the Federal Trade Commission.
A majority of states have ceilings on rates chargeable to customers in retail time sales transactions, ins tallment loans and revolving credit financing.
To date such regulations have not had a saterial adverse effect on GECC's volume of financing operations or profitability, although the recent rapid increase in interest rates and their effect on GECC's borrowing cost is causing GECC to re-assess the viability of certain types of lending in a number of states. GECC's insurance subsidiaries are subject to regulation by state insurance commissions.
Industrial Products and Camponents Industrial Products and Components include a wide variety of products made by a number of GE manufacturing units, primarily for sale to external customers as part of their productive capacity as well as to manufacturers and contractors for incorporation into. cheir own end products.
Industrial products and components are also used extensively within General Electric. In addition, certain services are offered and distribution capabilities are maintained by this Sector.
Business prospects for this segment as a whole tend to respond to general trends in the nation's economy, although the relative impact of these trends on any particular group of related products and services may vary.
For ensple, components such as small motors and controls can be af facted by broad trends in demand for consumer products which may be in an economic phase different from trends in capital expenditures by industrial customers.
In contrast, the positive business pattern of services over the past several years has been less affected by changes in the general economy.
l Motors and motor-related products include small motors and appliance controls as well as larger sizes of DC and AC motors and generators.
Therc products are used internally and are sold externally, principally to manuf acture rs of original equipment, distributors, and industrial users.
Competition includes other motor and component producers, integrated manufacturers, and customers' in-house capability.
Markets for these products are extremely price competitive, putting emphasis on economies f.,2 scale and manufacturing technology.
Other characteristics include rapidly changing technology, the cyclical nature of the consumer end-use maritet, and backward integration by major customers who represent a large portion of the sales of some motor products.
Contractor Equipment Operations focus on distribution and circuit protection equipment for construction markets.
In addition, these operations include motor controls, wiring devices, programmable lighting controls and wire and cable products. Products are sold to distributors, electrical contractors, large industrial users, and original equipment manufacturers. Markets are affected principally by levels and cycles in residential and non-residential cons truction as well as national industrial plant and equipment expenditures.
Competitors include numerous other large manufacturers.
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Transportation Products include diesel-electric and electric locomotives, transit propulsion equipment, motori:ed wheels for off-highway vehicles such as chose used in mining operations, and drilling drives.
Iacomotives are sold principally to domestic and foreign railroads while markets for other products include state and urban transit authorities and indus trial use rs.
Foreign markets are increasing in significance, and competition worldwide includes major i
U.S. and foreign firms.
Industrial Electronics Operations include electrical and electronic components such as capacitors and semi-conductors, industrial controls, and drive systems.
Customers include industrial distributors, original equipment manufacturers and industrial users. There is a wide w riety of i
domestic and foreign competitors.
In February 1981, General Electric acquired Intersil, Inc.,
a leading supplier of advanced integrated circuits and data acquisition and memory products, for $235 million.
Intersil will continue as a major supplier to the merchant market as well as a source of integrated circuits for CE's diversified product lines.
Also, in December 1980, the Company agreed to acquire Calma Company, a subsidiary of United Telecommunications Inc., for up to $170 million.
Calma is a supplier of interactive graphic systems, which include technologies used for computer-aided design and manufacturing.
Services, which are provided from domestic and foreign locations, i
include the maintenance, inspection, repair and rebuilding of electrical and mechanical apparatus produced by General Electric and others.
Distribution includes a nationwide network of electrical supply houses offering products of General Electric and other manufacturers to l
electrical contractors and industrial, commercial, and utility customers.
Power Systems Power Systems is comprised principally of products for the generation, transmission and distribution of electricity, and is substantially orienced towards electric utility customers.
These products dif fer in contribution to sales and earnings, market position and production cycle. Although the market for these products is world-wide, the major portion of sales is domestic. The market is sensitive to electric load growth, which historically has fluctuated I
with changes in the general economic environment.
In the short term many power systems markets are sensitive to the financial condition of the electric utility industry as well as electric power conservation ef fo rts by power users.
While the order backlog for steam turbines and nuclear equipment remains very large, the continuation of high utility reserve margins and uncertainty about future load growth as well as uncertainties regarding ' U.S.
energy policy is likely to continue to result in a low volume of new orders in the next few years and some further deferments and cancellations of existing orders. For further information, see " Orders Backlog" on page 13.
The large variety of power generation and delivery products of fered by ths Power Systems Sector well positions General Electric to continue to serve the electric utility industry, whatever the future directions of national energy policy.
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Steam Turbine-Generators, the largest business in this category, convert energy produced by fossil boilers (fueled by coal, oil or gas) or nuclear reactors (fueled by uranium) into electrical or mechanical power.
In addition to the electric utility indus try, the commercial marine narket, the US Navy and private industry (for plant power systems) are customers.
While General Electric is an impo rtant factor in each of these markets, competition is intense.
Because fixed cost levels are high, profitability is sensitive to changes in vclume.
Gas Turbines are used principally as packaged power plants for electric utility service and also for mechanical drive applications such as pipeline pumping.
International sales are a significant portion of the business, with intense and trorld-wide competition.
Because domestic utility purchases of gas turbines are primarily for peak-load service, utility demand is likely to remain depressed until reserve margins are reduced.
Nuclear products include boiling water-type power reactors, nuclear fuel assemblies and nuclear plant services.
General Electric is making substantial expenditures on engineering and development in support of nuclear projects in the backlog.
These expenditures, added to the effects of deferments of shipment and cancellations of nuclear orders, are expected to result in continuing losses for this business.
In the U.S., cancellations of nuclear plants have substantially outnumbered new orders during the last six years.
General Electric management believes that resumption of nuclear orders will depend not only on renewed demand for electric generating equipment, but also on government action to reform the nuclear licensing process and to resolve existing uncertainties regarding such issues as radioactive vaste storage as well as nuclear export policies.
Some older fuel orders include reprocessing, plutonium fabrication and waste disposal services.
In view of current U.S.
Government policies, it is highly uncertain whether such services can be provided.
Nevertheless, the nuclear fuel fabrication and services portions of the l
business are profitable, and the nuclear fuel and services needs of U.S.
l and foreign utilities offer ongoing opportunities.
Power Delivery products include transformers, power circuit breakers, switchgear, and meters, the principal market for which is the electric utility industry.
Margins are vulnerable to intense competition, both from domestic and foreign competitors and to sharp swings in demand.
Installatica and Service Engineering work carried on by GE in both domestic and international markets includes on-site engineering support, maintenance, and upgrading for products sold by the Company ard others to electric utility, industrial, and marine customers.
Technical Systems and Materials Technical Systems and Materials consists of jet e mines for aircraft, industrial and marine applications; electronic and other high-technology 7
products primarily for space applications and national defense; materials (engineered plastics, silicones, industrial cutting =aterials, laminated and insulating sacerials, and batteries);
medical systems; communications equipment; and computing services including time sharing, and remote data processing.
Strength in technological competence, excellence of design and ef ficiency of production, and adequate capacity to satisfy demand are among the key factors affecting competition in these products.
Research and development expenditures, both government financed and internally funded, are high in this Sector.
Agencies of the United States government are large customers for certain products and ssrvices of this Sector.
Jet Engines are used in military and commercial aircraft and, to a growing extent, in naval ships and as industrial power sources. General Electric's military engines are used in a wide variety of planes from helicopters to fighters, bombers and transports.
The Cy6 engine family is the principal commercial jet engine used in the McDonnell Douglas DC-10 and in the European Airbus A-300 and has been selected by a number of major domestic and foreign airlines to power the new 3ceing 767 and the Airbus A-310; it is also used to some extent in the Boei=g 747.
General Electric also produces jet engines for many types of executive aircraft.
Sales of replacement parts and services are an important part of the engine business. The worldwide competition in jet engines is intense and highly concentrated. Product development cycles are long and product quality and efficiency are critical to success.
Potential sales for any engine are ifmited by its technological lifetime, which may vary considerably depending upon the rate of advance in the state of the art, and by the if mited number of potential customers. Aircraf t engine orders tend to follow military and airline procurement cycles, although patterns for military and commarcial engine procurements vary.
In line with industry practice, sales of commercial jet aircraft engines involve long-term financing commitments to customers.
A majority of the aggregate dollar amount of CZ's commitments is secured, though in a l
secondary position.
Aerospace electronic and high technology products span the space sciences, electronics and microelectronics, avionics, computer software and centrol systems.
Applications include missile launch, guidance and re-entry systems, earth orbiting satellites, radar and sonar systems, armament systems, aerospace instruments and aircraf t instrumentation and controls. Most sales of these products are to U. S. government agencies.
Materials (engineered
- plastics, silicones, industrial cutting materials and, to a lesser extent, laminated and insulating materials, and batteries), serve a diversified customer base in the United States and abroad.
Most customers are original equipment manufacturers or custom fabricators. Market opportunities for many of those products are created by functional replacement which provides customers with an improved nacerial at lower cost.
The business is characteri:ed by technological innovation and heavy capital inves tment.
Ccapetition involves important emphasis on efficient manufacturing process 3
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l i=plementation and strong market and application development.
Ccmpetitors include large, technically orientsd suppliers of the sa=e, as well as functionally equivalent, materials.
Medical systems include diagnostic imaging and patianc monitoring equipment (such as X-ray machines and computed tomography scanners) and services sold to hospitals and =edical facilities.
Communication equipment includes mobile radio and data communication equipment sold to a variety of commercial customers and governmental agencies.
Technical innovation, high product performance, service and competitive pricing are especially important for both types of equipment.
Time-sharing computing services including remote data processing are offered through. a worldwide ne two rk which gives cus tome rs access to service center computers from remote terminals.
Competition comes from numerous domestic and international sources as well as customer in-house capability.
Natural Resources Natural Resources, primarily Utah International Inc. (Utah), includes the sining of coking coal, steam coal, coppe r, iron ore and uranium.
Other activities include oil and natural gas production, ocean shipping (primarily in support of mining operations) and on a smaller scale land acquisition and development.
Approximately 80% of 1980 revenues and 73% of net earnings of this segment originated from outside the United States.
The principal source of Utah's revenues and earnings is coking coal which is mined in Aus tralia.
Uranium and steam coal are mined domestically while iron ore and copper are mined principally abroad.
Virtually all mines are presently operated by open pit or strip mining methods, although some small underground mining operations have been started near existing surface coking coal operations in Queensland, Australia.
See pages 31 and 32 of General Electric's 1980 Anmmi Report l
to Share Cwne rs incorporated herein by reference, for more detailed l
information about significant mineral reserves.
l Utah has large areas under exploration for coal, non-ferrous metals, ferro-alloy metals, and precious metals.
Both Utah and its wholly owncJ non-consolidated affiliate, Pathfinder Mines Corporation, are exploring for uranium.
Depending on the resources being sought, areas being explored include the United States, South Ame rica, Australia, Canada, Africa and the Southwest Pacific.
The extent to which any deposits discovered will be sined, if at all, depends upon economic feasibility, l
political considerations and the development of markats.
j Coking coal is mined under long-term renewable Special Coal Mining Leases obtained from the state of Queensland at five open-cut mines (31ackwater, Goonyella, Peak Downs, Saraji and Norwich Park) and one comparatively small underground mine (Harrow Creek) loca ted in l
Queensland, Aus tralia.
At December 31, 1980, Utah owned through an j
affiliate approximately an 89% interest in the 3lackwater mine and a 68:
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interest in each of the other four sines.
Utah-operated coking coal nines have a total annual production capacity, including partne rs '
shares, of about 23 =1111on ' netric tons.
Coking coal is sold pri=arily to Japanese steel producers and, to a lesser extent, European customers.
Most of these sales are under contracts of varying lengths with a majority containing escalation clauses that of fer substantial protection agains t future cost increases.
All such sales contracts are payable in U.S. dollars.
Spot sales are also made.
For other information about coking coal, see page 31 of GE's 1980 Annual Report to Share Owners.
Utah's two most substantial steam coal operations at present are the Navajo Mine and the San Juan Mine located in the Four Corners area of New Mexico.
The Navajo Mine is on the Navajo Indian reservation and is held under a long-term lease with the Navajo Tribe.
The lease continues as long as substances are produced in paying quantities.
The Navajo Tribe is seeking to renegotiate the royalties provided for under this lease.
See also
- Legal Proceedings" on page 16 on water rights litigation.
The mine furnishes the entire fuel requirements of the 2,085-megawatt Four Corners Power Plant owned by six utility companies under long-term supply contracts containing provisions affording some protection against cost escalacion.
In December 1980, Utah acquired the coal leases at San Juan, where previously it had operated under a mining contract.
The new agreement provides for a wholly-owned affiliate of Utah to supply coal until the year 2017 to the San Juan Station owned by two utility companies. For other information about steam coal, including other sines and reserves, see page 31 of GE's 1980 Annual Report to Share Owners.
Utah's principal copper interest is the wholly-owned Island Copper Mine in British Columbia, about which information is included on pages 31 and 32 of GE's 1980 M m m1 Report to Share owners.
Iron ore mining operations include ownership of 49% of the voting stock in Samarco Mineracao S.A. (Samarco), a Brazilian ccapeny involved in a substantial project in Brazil to extract iron ore from a sine in the country's interior and to transport it in slurry form by pipeline to a pelletizing plant and shipping terminal on the coast.
The other stockholder in Samarco is a 3razilian company, S.A. Mineracao da Trindade
("Samit:1").
Samarco operated at a break-even level in 1980 compared with a loss in 1979.
Timing and strength of improvements in iron ore demand will affect the profitability of this project.
The total assets of Samarco Operation were $585 million at year-end 1980, with S344 million in equity and $215 million financed by long-term dabc.
Of the long-ters debt, $211 million is jointly and severally guaranteed by Utah and Samitri.
Utah's equity inves tment at year end was $173 million.
Other iron ore properties include a partially-owned mining operation at Mount Goldsworthy in Australia and an iron sands mining interest in New Zealand.
Oil and natural gas operations are conducted by wholly owned Ladd Petroleum Corporation, pri=arily in the U.S. and Canada.
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O Uranium mining and milling are conducted at three sines located in Wyoming.
In 1976 the existing operations were trans ferred to a new company wholly-owned by Utah.
This affiliate was es tablished in the course of obtaining a C.S.
Department of Justice Business Advisory Clearance Procedure letter in connection with the General Electric-Utah merger.
All common s tock of this affiliate (Pathfinder Mines Corporation) is held by independent voting trustees until the year 2000.
Subsequent to December 20, 1976, financial results of the affiliate have not been consolidated with General Electric's.
See note 12 to the financial scacements in the GE 1980 Annual Report to Share Owners for further information concerning this uranium mining affiliate.
Pathfinder's. loss increased during 1980 from 1979 reflecting sharply higher operating costs combined with the low' prices received as final deliveries were made under contracts signed in the early 1970s. In 1981, Pathfinder is expected to begin making deliveries on higher priced sales contracts. Longer-term prospects are clouded by current market weakness, and future improvement is uncertain.
Mining operations require that various governmental
- licenses, authorizations and permits be obtained.
Periodic renewals of routine permits must be solicited and obtained if the mining operations are to be continued.
Many of Utah's mining operations involve leases, the continuance and renewal of which are subject to the satisfaction by Utah of various conditions.
In many cases the renewal of leases is also subject to renegotiation of rents or royalties payable thereunder and mining operations frequently involve taxes on production or severance.
Utah has experienced significantly increased labor, supplies, and purchased energy costs during recent years in all of its operations.
The application of escalacion clauses in Utah's long-term sales agreements has in most cases substantially offset these cost increases.
The sale of copper concentrates does not fall into a fixed price long-term pattern, as the price fluctuates depending upon London Metal Exchange copper quotations, or upon copper metal prices being received by domestic smelters.
Most of the iron ore agreements do not contain escalation clauses but prices are subject to periodic review and adjustment.
Utah's foreign operations and investments may also be affected by economic and political conditions in the countries where they are located, I
including budgetary considerations, anti-inflation
- programs, exchange controls, currency fluctuations, export regulations and laws and policies designed to reflect the interests of such countries, as well as by laws and policies of the United States affecting foreign trade and investment.
The policies of Aus tralian Federal and state governmental authorities are of particular importance in this regard. For m mple, during 1978 the Auseralian Federal government imposed an additional 5% tax on foreign-inco rporated companies operating as branches in Australia.
A negative development in 1979 was the Aus tralian Federal Government's decision to retain the coal export duty, a levy it previously was committed to eliminate.
In recent years, the Australian authorities have also sought to increase the equity ownership of Australian investors in new mining operations. In March 1977, as a major step in the development of the Norwich Park coking coal project, an 39 owned subsidiary of Utah, together with its joint venture par.ner sold an interest in certain Queensland coal mines and related facilities to two Aus tralian companies. Utah's equity in such projects decreased fece about 76 to 68%.
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Foreign Multi-Isdustry Opera lot s Foreig
uhi-hdus try Opera: ices ec = sis :
principally of foreig:
affilia:es which =anufae:ure a varie:y of pr: ducts f:
sale in. heir respec:ive he:e and export :arke:s.
~he larges: Of these affilia:es is Canadia: General Ilectric C:=pany L1=ited which had sales of 31,166 =11110: in Canadian dollars is 198C.
0:her principal =uhi-indus try
-.a=ufae:
ing opera:10:s are loca:ed is 3:asil, Vene:uela, Mexico and Spai=, vi:h a ~+er Of s= aller affilia:es opera:ing in c:her ::c:: ries.
Ncce of these c:ber sacufacturing af filiates accounted for =cre than IC: of seg=en: reve:ces. Se Spanish afillia:e had a larger hss in 1980 :han in 1979.
~his was largely due to depressed local econcef condi:1ces a:d i:dustry over-capacity.
~hrough 1:s In:ernational Construe:ics opera: ions, the Ccapa=y also provides anage:en: and :ech:ical e=pe rtise for large :::s :ructic: projects such as trans_,issics lines. Cczpetitics and = arks: conditions vary with :he produe:s and : ustries i:volved.
L cal gover==ent policies a:d ec :cci cc:di:10:s -
particularly rates of inflati::, =cce:ary flue: nations, a:d halance of payment pr:blems - ca: have significa:: effec:s c: eperati::s Of these af filia:es.
!=
addi: ice to :he ?creign Mul:1-I:dustry Operati :s reported as a 1:dustry seg=e::, General Electric derives substa :ial revenues a:d. se:
earni:gs fr:= Other sour:es cu: side the C=1:ed S ta:es.
Resul:1 Of these o perations are included 12 the apprcpria:e indus:ry s e g=ents.
These othe r seur:es f ince=e fr:n cu: side the U.S.
include:
(1) Operatices of ec= dire sified foreign affiliates, 1 cluding :he foreign opera:ic=s of C:ah 1::ernati: al, I:c.; (1) experts of GE pr: ducts a::d services fr:a the U.S.
unaffilia:ed f:reig: ::s:::ers a:d :o GE af filia:es; a:d (3) :ect=olo gy licensing revenues fr a unaf filiat ed ad affilia:ed foreign source s.
A sary =f :::a1 international operatic =s for all seg=e::s for :he las: :hree years f=11:vs.
Year ended rece=ber 31 1973 1979 1980 (A= cunts in =11li::s)
Revenues 3,,, 0 3.
2,, -0
.e 9,,c 9,,
Net ear:1:gs 48 6
!!6 639 Financial data f:r industry a:d gecgraphic segmes:s (1:cludi:g experts frc the U.S.
- o unaffilia:ed cus:::ers) are repor.ed c pages 44 and af of
- he GI 1990 A:=ual Zapor: :o Share Cvners.
Orders heHng General Elec:ric's back1:g f unfilled O rde rs f:: =anufac:ured p ducts aggrega:ed $10.6 511110: a: Cece:be r 21,1990 and 1979.
S addi:ic: :: :he f:regoing, Natural lescur:es had a =ineral sales backlog, including urasius,
t.ich aggregated 56.3 511110: at Oece:be: 31,1980, cc: pared vi:: 3f.6 51111:=
a: :he end Of 1979.
? due:s and se rvic es seld by Ge:eral Ilectric have a em
vide range of order-to-ship =ent cycles.
Se table below shows, for each of
- he las: two years, :he presently scheduled percen: age conversion of year-end backlogs into sales during subsequen: years.
At December 31, 1980 At December 31, 1979 Manufactured Mm m fmetured Products and Ffwral Products and F.ineral Services Sales Services Sales 1981...........
43:
17 1980...........
41:
20 1982...........
21 13 1981...........
18 15 1983...........
13 13 1982...........
8 13 1984...........
4 11 1983...........
6 13 1985...........
3 10 1984...........
4 12 1986 16 36 1985 +........
23 27 100:
100 ICC:
100%
Power systess orders accounted for $11.0 billion of the ma=ufactured products and services backlog a: December 31, 1980, compared vi:h $12.1 billion at the previous year end.
Of these amounts, the orders backlog for steam turbine generators was $2.7 billion at year-end 1980, of which $1.3 billion is scheduled for shipment after 1985.
Se comparable backlog for 1979 was S3.9 billion, of which $2.0 billion was scheduled for shipment after 1984.
Se decrease is the steam turbine-generator backlog from 1979 was attributable primarily to elimination of orders for uni:s to longer expected to go 1:to production, and also :o sales : hat exceeded new orders.
Also included is :he power systems backlog at year-e:d 1980 were =uclear reactor, fuel assembly and plant services orders of $5.5 billion, of which S1.9 billion is scheduled for shipeen: af ter 1985.
The comparabia backlog for 1979 was $5.3 billion, of which $2.5 billion was scheduled for shipment after 1984 Se Octal unfilled orders backlog from unaffilia:ed cus cmers for exports fro = :he U.S. was S5.1 billion at :he end of 1980 compared vi:h 54.5 billion at the end of 1979.
Orders constit.. ing :he Company's backlog say be deferred or canceled by custo=ers (subject is cer:ain cases to cancellation penalties).
Research and Development Expenditures for research and development were $1,598 sillion is 1980 compared with $1,440 million in 1979 a:d $1,270 =illion is 19'3.
Of these amounts, S760 sillion in 1980 was compa=y funded (5640 sillion is 3/9 and
$52121111on is 1978), and S838 million (S800 sillion in 1979 a:d $749 11111on l
in 1973) was funded by others, pri:cipally :he U.S.
government.
In recent years, on :he average, between 12,000 a:d 13,000 scientists a:d engi eers have been engaged is research and development activi:ies with sligh:17 under half of thes engaged prisarily in company fundec activi:ies.
I 13 1
Imployee Relations Ouring 1990 General Electric e= ployed an average of 402,C00 people, of whom approxi=acely 235,000 were in the Uni:ed States.
Approxi=ately 110,000 =anufacturing employees in the Uni:ed S:ates are represented for collec:ive bargaining purposes by a total of around 325 differen: local collective bargaining groups.
A large majority of such esployees is represented by local unions which are affiliated with, and bargain in conjunction wi:h, one or the other of two national unions, namely,
- he International Union of Electrical, Radio and Machine 'Jorkers (AIL-CIO) and the United Elec:rical, Radio and Machi:e 'Jorkers of America.
During 1979 General Electric negotiated - three year contracts with almost all the Uni:ed States unions representing employees vi:h which it deals.
Most of these contracts will terminate in June 1982 and the rest will :erminate later in the sa=e year.
Ctah's principal operations are in Australia.
Seventy-five pe rcent of its Australian employees are represented by the Combined Mining Unions.
Utah has expe rienced intermittent work stoppages by these union e=ployees.
A two-year labor agreement was made in July 1920 with Australian sining unions.
Production, though, was interrupted for ten weeks during the third quarter of 1980 when employees protested a government proposed tax on subsidized housing.
Utah's unionized North Americaa employees are covered by collective bargaining agreements ex-iri=g at various times through :he year 1983.
Item 2.
Properties Manufacturing operations are carried on at ap proximately 228 manufacturing plants located in 34 states in the United States ard Puerto Rico and some 135 sanufacturing plants located in 24 other countries.
i Principal mining properties controlled by Utah International Inc. and 1:s affiliates are si:ua:ed at 5 locations in Aus::alia, 7 locations in the United States and i location in Canada. Oil and natural gas production is carried on at muserous si:es in the Uni:ed Sta:es and Canada (See "3usines s-Natural Resources").
L Item 3.
Legal Frc,cas.iings i
j General l
l
's May 1972 the United Sea:es Department of Justice filed a civil l
antitrust suit agains General Elec:ric in the United States Dis trict Court for the No r.hern District of New York.
This suit claimed : hat General Electric had used unlawful reciprocal purchasing arrangements a:d sought an injune: ion and related relief.
Trial of the satter commenced on March 23, 1977, and af:er the close of :he Gover: ment 's case on April 1,1977 General j
Ilec:ric :oved to dis =iss for failure of proof.
The court has never ruled on l
that motion, and there have been no further proceedings in the =at:er since April 1977.
la
Cn October 15, 1975 a complaint was filed in the United States District Court for the No rthern District of Illinois by Westinghouse Electric Corporation against Utah International Inc. and numerous other producers of uranium, both foreign and domestic for alleged antitrust law violations.
The complaint alleged that the defendants conspired to fix prices of uranium in foreign and domestic ccamerce, allocated markets for uranium and refused to Seil uranium to certain purchasers.
The complaint sought injunctive relief and treble damages. Westinghouse and Utah International have recently reached an agreement in principle for settlement of this matter.
Following a fire on May 23, 1977 in the Beverly Hills Supper Club, Southgate, Kentucky, a number of actions were commenced in the Circuit Court of Campbell County, Kentucky, and in the U.S. Dis trict Court in the Eastern District of Kentucky on behalf of individuals who were injured, or the legal representatives for the decadents who were killed in the fire, agains t the owners of the club, the architects, the general contractor, numerous suppliers of components and furnishings, and many others.
The plaintiffs included in their complaints all U.S. manufacturers of aluminum building wire and wiring devices manufactured for use with such wire.
General Electric was named as a defendant in five of the consolidated cases because it manufactures wiring devices.
In a trial againse manufacturers of aluminum building wire and
, wiring devices, a jury returned a verdict in February 1980 for the defendant manufacturers.
The plaintiffs have appealed from a judgment entered on that verdict.
The Company believes these appeals will be unsuccessful.
General Electric also appeared as a defendant in some of the cases as a manufacturer of insulation for electric wiring.
These cases have been settled by General Electric.
As the consequence of the crash of an American Airlines DC-10 near Chicago, Illinois on May 25, 1979, a number of damage actions were filed in federal and state courts by legal representatives cf individuals killed in the crash against American Airlines, McDonnell Douglas, the builder of the airplane, against General Electric, the engine manufacturer, and against other suppliers of components.
All but seven of the state court cases in which General Electric was named as a defendant were removed to Federal Court and thereaf ter consolidated with the other federal cases in the Federal District Court for the Northern District of Illinois.
The plaintiffs in these various federal court actions subsequently filed a voluntary discontinuance as against General Electric.
The seven state court cases - all in California - remain pending.
There has been no indication whatsoever from any of the investigations of the causes of this crash that General Electric wa. at fault.
In January 1980 the Company was served with a complai filed in the Supreme Court of the State of New York by Solargen E3 onics, Ltd. and Solargen Electric Motor Car Corp.
seeking judgmen*
_n the amount of approxinately $1.6 billion for compensatory and punic'. damages for alleged breach of warranty, cons piracy, fraud and deceit
_a connection with the furnishing of electrical control systems and motors to convert conventional automobiles to electric cars.
The case is in the discove ry stage.
The Conpany believes it has no liability in this matter.
15 I
In September 1980 indic nents were returned in :he U.S.
Distrie: Court for the District of New Jersey charging General Electric Ccmpany and five other defendants with violations of the U.S. crisinal code clai=ed to have resulted frem an alleged bribe of a government official of Puerto Rico in connection with a contract in 1974 for the supply and construction of a power plant.
Two of the defendants were employees of the Company at the time the alleged bribe arrange =ents were purported to have been made, one of whom was a l
vice president.
Following trial, the jury returned verdicts of guil:7 on February 11, 1981 agains t the Company and the other defendants on six of the seven counts in the indic: ment.
Motions by the Company and the other defendants for dismissal of the action or for a new trial will be heard by the Court on April 3, 1981. In a related matter, the Electric Energy Authority of Puerto Rico filed a complaint on March 10, 1981 in the Superior Court of Puerto Rico against the Ccapany and others claising ismages of $189 million for non perforsance and fraud in connection with the power plant contrac:
referred to above.
- he complaint seeks treble the damages claimed.
The Company has the ma:ter under review.
On nrch 13, 1976 the A:torney General of New Mazico filed suit in state court in San Juan County naming the United States, certain Indian Wards, Utah International and others as defendants. The sui: seeks a determination of the relative rights of federally established reserves such as national-forests and Indian reservations and all other public and private interests in the stream system which furnishes water for use by Utah in connection with the operation of its Navajo steam coal sines and for the operation of the Four Corners power plant.
Utah holds 1:s water rights in the stream system for its own benefit and for the benefit of existing and potential customers who would develop industrial facilities adjacent to Utah's Navajo mine.
- he Company believes that, because of the complexity of this litigation, a substantial number of years v.11 elapse before there is a final determination on the merits, and the outcome cannot now be predicted.
Environmental on September 27, 1977 an action was filed in the Superior Court for :he State of Connecticut by two individuals and the 'Housatonic River" alleging General Electric Company has discharged PC3s into the Housatonic River in violation of the law of the State of Connecticut.
The plaintiffs seek the following relief :
(1) declaratory judgment determining whether General Electric has unreasonably polluted or impaired the wa:ers and other natural resources in the State; (ii) an injunction restraining General Electric from further violations of the statutes ; (iii) a sandatory injunction directing General Electric to restore the Housatonic River to the condition that existed before General Electric's alleged actions; (iv) compensatory damages to :he plaintiffs in an unspecified amount; and (v) civil penal:1es as provided under the s ta tutes.
The case remains in a pre-trial s: age.
While it is not possible at this time to express an opinion as to the outcome of this case or the related case reported in the next paragraph, i: would not appear tha:
either case involves a significant risk of a nacerial financial ispact on the Company.
On June 25, 1979 two other individuals filed sui: in the Superior Court for the State of Connecticut alleging that General Electric Company had 16
m discharged FC3s in:o :he Housa:onic liver and had thereby caused pollu:fon.
~he original plaintiffs in this action alleged tha: they were owners of real proper.y abutting on a lake which is an inpoundsent of :he Ecusatonic River.
~he complaint, seeki=g injunctive relief and r*mma ges, sought to have the ac: ion designated as a class action.
~he Company removed this ac* ion to the i
yederal Distric: Cour in Connec*icut.
A number of additional parties were gran:ed leave to in:ervene as plaintiffs in :he proceeding.
Cu December 3,
- 1980, a
federal angistrate denied plain:1ff's reques:
for class certification. ?laintiffs have filed objections to such denial.
On October 24, 1977 the Nuclear legulatory Commission issued an order to show cause which directed General Electric to close down a tes: nuclear reactor licensed for many years for operation at Company facill:1es near
?leasanton, California. *he order was based en alleged potential risks associated with claimed seismic condi: ions in the vicinity of the reactor site.
The Advisory Committee on Reactor Safeguards has been evaluating geologic and seismic data.
At the request of third party intervenors, there will be a hearing on this me::er, probably in mid-1981.
General Electric's license for the storage of spent nuclear fuel a: 1:s Morris, Illinois facility expired August 31, 1979. Applica:ica for renewal of the license has been filed and public hearings will be held before an Atomic i
Safety and Licensing Board sometime in 1981.
A number of parties, iv1M
- ng the A torney General for the State of Illinois, have intervened to oppose renewal of the license.
On December 24, 1980 General Electric, together wi:h Sou: horn California Edison, filed sui: in the U.S.
Dis:rict Cour: for the Northern District of Illinois challenging :he consti:utionali:7 of an Illinois statute, enacted i: la:e 1980, which prohibi:s shipment of spent nuclear fual into the state and, possibly, the conti=ned storage of spent fuel already in storage.
On December 25, 1980, the Illinois Attorney General brought sui:
against Southern Call'ornia Idison (but not General Electric) in the Circuit Court in Grundy Couary, Illinois seeking an injunction agains: future shipments of spent fuel from I'm ! * *o rnia :o Illinois in violation of the Illinois statute.
On July 30, 1979 General Electric Company filed a peti:ica in the United States Cour: of Appeals for the District of Columbia Circui: for judicial review of certain Federal Invironmental Protection Agency regulations issued under the Texic Substances Control Act which prohibi: the manufacture of j
unintencional PC3 byproducts even when removed during :be manufacturing process and thereaf ter destroyed by I?A approved incineration methods.
This petition is s:ill pending.
In 1978 :he Company had filed with I?A a request for an exemption from this particular applica ion of the prohibi* ion.
"he I?A has not a:.:ed on -Jnis application.
4 In a letter da:ed November 29, 1979 the California Department of Health informed the Compa ty that analyses of soil samples fres a Compa=y facili:7 in Od?mnd, Ca - *+ disclosed PC3 contmsha ion and directed the Company to take corrective action.
The Company submitted a plan, which was agreed to by the sta:e in January 1981. The plan calls for on-si:e cen=ainment of PC3's by encapsula: ion and :he recovery a:d removal of oil.
et
On August 20, 1980 the Jefferson County, Kentucky, Air Pollution Control Board filed a complaint in Jef ferson Circuit Court alleging that a Company facility in the County failed to order and ins tall air pollution control equipment in accordance with a compliance schedule contained in applicable regulations.
The parties have agreed to a consent order, expected to be entered in March, 1981, imposing no penalty, and containing an alternate compliance schedule.
On October 6, 1980, the Company joined with others in a Petition for Review in the United States Court of Appeals for the District of Columbia Circuit, of the Federal EPA's rules under the Clean Air Act to prevent significant dete rioration of air quality in areas where national standards have been met.
On Octobe r 9, 1980 the U.S.
Environmental Protection Agency filed an administrative action against the Company alleging that the Company's trans former repair operations in Denver, Colorado did not comply with regulations under the Toxic Substances Control Act relating to the storage and disposal of PCB's.
In February 1981 the Company agreed to the entry of an order providing for certain corrective action and for a penalty of $5,000.
On October 17, 1980, General Electric received a letter from the United States Actorney for the Southern District of Indiana advising that the Federal Government had brought a law suit against the owne rs and opera to rs of a chemical dump site at Seymour, Indiana in order to compel a. cleanup of the site, which it is claimed presents an feinent and substantial endangerment to the health and environment in violation of Section 7003 of the Resource Conservation and Recovery Act.
The letter asserts that under this statute generators of the vaste material at this site, including General Electric, face legal liability for the cost of the site cleanup which is stated in the letter to be approximately $12 million.
The letter solicits Caneral Electric's voluntary contribution to the cost of the cleanup.
The Company is reviewing the satter.
On December 16, 1960 the Secretary of the Interior teclared a portion of coal lands of Utah International Inc. located in Kane County, Utah unsuitable, based upon environmental considerations, for surface coal mining. On February 12, 1981 Utah International Inc. and another party having an interest in coal lands in the area filed a complaint in the U.S. Dis trict Court for the District of Utah against the U.S.
Department of the Interior and others I
challenging on a number of grounds the designation of unsuitability.
l On December 31, 1980 the U.S. Department of the Interior issued a notice of violation to Utah International Inc. for alleged noncompliance with Department regulations regarding methods for res to ring vegetation after surface mining operations.
The notice calls for abatement of the alleged l
violation and for a penalty of $4,400.
l On January 7,
1981 the United States Environmental Protection Agency l
issued a notice of violation o the Company alleging that the s=oka e=1tted from the Company's boiler house in Jef ferson County, Kentucky occasionally exceeded opacity standards contained in applicable regulations.
- 41th EPA's l
13
consent :he Jefferson County Air Pollu: ion Control 3 card assumed jurisdic:1on and initiated discussions with the Co=pany to resolve the natter.
Concurrently, :he Co=pany is discussing directly with the EPA its proposal
- hat the Company's six boilers at the facili:7 undergo mass particulate emission :es:s.
On January 13, 1981 the Depar:=ent of Environmental Protection for the State of New Jersey issued an order directing Company operations in Newark to comply with regulations which require that modifications of heating and ventilating equipment be authorized by a written permit from the Department.
The Company has been given until May 1981 to comply wi:h the order.
On January 21, 1981, General Electric filed a petition in the Supreme Court of the State of New York, Albany County, seeking judicial review of a ruling by the New York State Department of Environmental Conservation that spent sulfuric acid is indus trial waste which may be transported to a recycling facility only if a permit has been issued by the Department for such transportation.
On February 9, 1981 the Company received a let:er from the Kentucky Department for Natural Resources and Environmental Protection citing the Co=pany for alleged failure to meet, on two occasions, required smoke opacity standards at Ccmpany operations in Lexing:ca, Kentucky.
The Company has :he
=a:ter under review.
'Jith res pect to any of those proceedings as to which no opinion is expressed above, it is the view of management : hat such proceeding will not have a sacerial effect on the financial position of the Company.
Item 4.
Security Ownership of Certain R===ficial Owners and Management Incorporated by reference to " Ownership of Ccumon Stock by Directors and Officers" in the registrant's defini:ive proxy statement relati:g to 1:s Annual Meeting of Share Cuners :o be held April 22, 1981.
PART II Item 5.
Markat for the Registrant's Commmon Stock and Related Security Holder Matters Incorporated by reference to " Quarterly dividend and stoci =arke t infornation" on page 47 of the GE Annual Report to Share Owners for the fiscal year ended recember 31, 1980.
Item 6.
Selected Finanef 21 Data Incorporated by reference to 1976 through 1980 data for sales of produe:s and services to customers, net earnings, earnings per com=on share, dividends declared per common share, long-term borrowings and total assets appearing on page 46 of the GZ Annual Report to Share Owners for the fiscal year ended December 31, 1980.
19
Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations Incorporated by refereous to Financial Review appearing on pages 25 through 32 of the GI Annual Report to Share owners for the fiscal year ended Dece:ber 31, 1980.
Item 8.
Fi nanci mi Statements and Supplementary Data Inco rporated by reference to repo rt of indepe: den: ce rtified public accountants, financial statemen:s, su==ary of significant accounting policies, notes to financial statements, quarterly dividend and stock market information, and operations by quar *.er for 1980 and 1979 appearing on pages 33 through 43 and on page 47 of the GE Annual Report to Share Cuners for the fiscal year ended December 31, 1980.
PAE! III Item 9.
Directors and Executive Officers of Registrant R== eiie Officers of the Engistram Data =+ w he Position g present position
~4a**-=Td E. Jones.........
Chm #Nn of the Board acd Chief Execa:1ve Officer 63 December 1972 John ?. Welch, Jr.........
&md-n-elect of the 3 card 43 Jan.:ary 1981 John F. 3urlingame........
7 ice Chsf man of the Board ani Executive Officer 58 Oc:ober 1979 Edward E. Eood, Jr........ Vice Chaf man of the 3oard and Executive Officer 50 Oc.ober 1979 Arth2r M. 3ueche.......... Senior 71ce PresidectK:orporate Technology 60 September 1973 Ca=iel J.
Fink............
Senior 71ce PresidectnCorporate Phani=g ani Develo;xment 54 October 1979 Rober: 3. Kurtz...........
Sector Vice Presidect-Corporate Produe fon and Operating Services 63 Dece=cer 1977 Leccard C. Maier, Jr......
Se=1or vice President-Cs:porate Relatices 56 Dece=cer 1977
'Jalter A. Schlot:erbeck... Sector Vice President, Ceteral Counsel ani Secretary 54 Dece=ber 1977 Uxxsas 0. Thorsen......... Senior 71ce Preside =t-Finanes 49 lbvember 1979 James A. 3aker............ Executive vice President and Sector Executive 53 October 1979 Robe rt R. Frederick....... Executive Vice President ani Sector Executive SS October 1979 Her-an R. E111............
Executive vice President ani Sector Executive 62 Nove=ber 1979 Chris tophe r T. Kas tner.... Executive Vice Preside =t ani Sector Executive 35 Oc: star 1979 Paul *J. 7an Orden.........
Executive 71ce President ani Sector Executive 53 Oc: ster 1979 James J. Costello.........
7 ice President and Comptrollar 51 Neve=ber 1979 Dale ?.
Frey..............
Vice President ani Treasurer 4
Septe=ber 1980 All officers are elected by the 3 card of Direc: ors for an initial te==
which con:inues until the firs: 3 card meeting following the ner. assual statutory neeting of share evners and :hereaf ter are elected for one-year terns or until their successors have been elected.
20
All officers have been executives of General Electric Company for the last five years.
he remaining information called for by this item is incorporated by reference to the definitive proxy statement relating to the registrant's Annual Meeting of Share Owners to be held April 22, 1981.
Item 10.
Management Wa===* ration and Transactions Incorporated by reference to the definitive proxy statement relating to the registrant's Annual Meeting of Share Owners to be held April 22, 1981.
PART IV Item 11. Exhibits, Financial Stat===ar Schedules and Reports on Forn 8-E (a) Financial Statements (1) Applicable to General Electric Company and Consolidated Affiliates and contained on the page(s) indicated in the GE Anmral Report to Share owners for the fiscal year ended December 31, 1980.
Page(s)
Report of Independent Certified Public Accountants...............
33 Statement of earnings for the years ended December 31, 1980, 1979 and 1978..................................................
34 Statenant of retained earnings for the years ended December 31, 1980, 1979 and 1978...........................................
34 Statenant of finanM al position at December 31, 1980 and 1979....
35 Statement of changes in ffnanMal position for the years emfed December 31, 1980, 1979 and 1978...............................
36 Other financi'al information:
Sumunery of significant accounting policies....................
37 Notes to fi nanci al statanants.................................
38 - 43 Industry segment infornetion..................................
44 - 45 Geographic segment information................................
45 (2) Applicable to General Electric Credit Corporation Consolidated Statement of Financial Position at December 31, 1980 and 1979 Consolidated Scacement of Current and Retained Earnings for the three years ended December 31, 1980 Consolidated Statement of Changes in Financial Position for the three years ended December 31, 1980 Notes to Financial Statements Report of Independent Certified Public Accountants 21
The financial statements of General Electric Credit Corporation are included in the annual report (Form 10-K) for 1980 filed with the Securities and Exchange Commission by General Electric Credic Corporation and are hereby incorporated in and made a part of this annual report (Form 10-K) by reference.
The financial statements of the registrant are omitted because the registrant is primarily an operating company and all affiliates included in the consolidated financial statements being filed, in the aggregate, do not have minority equity interest and/or indebtedness to any person other than the registrant or its consolidated affiliates in amounts which
)
together exceed 5% of the total assets as shown by the most recent year-end statement of financial position.
(b) Financial Statement Schedules The schedules listed in Reg. 210.5-04, except those shown below, have been omitted because they are not applicable or the required information is shown in the financial statements or notes thereto.
Schedule Page II Amounts Receivable from Related Parties and Under-writers, Promoters, and Employees other than Related Parties....................................
F-1 III Investments in, Equity in Earnings of, and Dividends received from Related Parties......................
F-2 V Prope rty, Plant and Equipment........................
F-3 VI Accumulated Depreciation, Depletion and Amortization o f Prope rty, Plant and Equipment...................
F-4 VIII Valuation and Qualifying Accounts....................
F-5 II Sho rt-Te rm Bo rr owing s................................
F-6 (c) Esports on Form 8-E No reports on Form 8-K sere filed during the quarter ended December 31, 1980.
(d) Exhibits l
(3) Restated Certificate of Incorporation, as amended, and By-laws, as amended, of General Electric Company.
(Incorporated by reference to Exhibit 1(b) to Registration Statement No. 2-61805.)
(4) Agreement to furnish to the Securities and Exchange Commission upon request a copy of ins truments defining the rights of holders of certain long-term debt of the registrant and all subsidiaries for which consolidated or unconsolidated financial s':acements are required to be filed.
22
(10) (a) General Electric Incentive Cospensation Plan.
(Incorporated by reference to pages 18-23 of the prospectus contained in Post-Effective Amendnent No.
5 to Registration Statement No. 2-32955.)
(b) General Electric 1978 S tock Option-Pe rformance Unic Plan.
(Incorporated by reference to Exhibit 2(a) to Registration Statement No. 2-61314.)
(c) General Electric 1973 Stock option and Stock Appreciation lights Plan.
(Incorporated by reference to Exhibit 1 to legistration Statement No. 2-49091.)
(d) General Electric 1968 Stock Option Plan.
(e) Amendments to General Electric 1973 Stock option and S tock Appreciation Rights Plan and 1968 Stock Option Plan.
(Incorporated by reference to Exhibic No. I to Post-Effective Amendment No. I to Registration Statement No. 2-61314.)
(f) General Electric Supplementary Pension Plan.
(g) General Electric Deferred Compensation Plan for Directors.
(h) Excesss-Benefit Plan for Employees of Utah International, Inc.
(1) General Electric Insuranca Plan for Directors.
(j) General Electric Financial Planning Program.
(k) General Electric Supplemental Life Insurance Program.
(13) General Electric Annual Report to Share Owners for the fiscal year ended December 31, 1980. (Attached to this Form 10-K leport.)
(22) Subsidiaries of Registrant l
t l
l l
l l
l 91 l
l l
SIGNA'IURES 1
Pursuant to the requirements of Section 13 of the Securities and rv h.
Act of 1934, the registrant has duly caused this anmaal report to be signed on its behalf by the undersigned, thereunto duly authorized in the Town of Fairfield and State of Connecticut on the 27th day of March, 1981.
General Electric Company (Registrant)
By
/s/ Reginald H. Jones Reginald H. Jones Chairnan of the 3 card Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
Signer Title Date Principal Executive
/s/ Reginairl H. Jones Officer and Director March 27, 1981 Reginald H. Jones Chairnan of the Board Principal Finant-* al
/s/ Thomas 0. Thorsen Officer March 27, 1981 Thomas 0. Thorsen Senior Vice President-Ff nans Principal Accounti=g Officer Mar 6 27, 1981
/s/ James J. Costello James J. Costelio 71ce Presiden: atd Cceptroller J. PAUL ACSTIN Director RIGARD T. BAIER Director JAMES G. 3CSLEJ II Director l
JCHN F. BURLDUAME Director l
SILLS S. CATECARI Director CEARLES D. DICKEY, JR.
Director l
EEIRY H. HE; LEY, JR.
Director HENRY L. HILIl%N Director EDWARD E. HOG), JR.
Director 3y
/s/ Walter A. Schlotterbeck JCHN E. LX R NCE Director RALPH LCARUS Director Walter A. Schlotterbeck EDMEND W. LC'ILEFIELD Direc:ce Attorney-in-fact GECRGE M. LCW Director
(
vs.r8LLt. G. MINSCN Director IZ4IS T. PRESTCN Director Mard 27, 1981 GILBE*C H. SCRIENER, JR.
Director JCHN F. LH.G, JR.
Director l
WALTER 3. WRISTCN Director A najority of de 3 card of Directors 24 i
REFORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS The Board of Directors General Electric Company:
Under date of February 20, 1981, we report ed on the statement of financial position of General Electric Company and consolidated affiliates as of December 31, 1980 and 1979, and the related statements of earnings, retained earnings and changes in financial position for each of the three years in the period ended December 31, 1980, as contained in the annn=1 report to share owners for the year 1980.
These financial statements and our report thereon are incorporated by reference in the annual report (Form 10K) required to be filed by General Electric Company under the Securities Exchange Act of 1934.
In connection with our ernmination of the aforementioned financial statements we also examined the related supporting schedules listed in Item 11(b) on page 22.
In our opinion, such supporting schedules present fairly the information set forth therein.
PEAT, MARWICK, MITmm & CO.
New York, New York February 20, 1981 I
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GENERAL ELECIRIC COMPANY AND CDNSOLIDATED AFFILIATES SCHEDUIJ. II - AMOUNTS RECEIVARM FEOM RELATED PARTIES AND UNDEENRITERS, PROMOTERS, AND EMPLOYEES OTHER THAN R"T.A*ED PARTIES n=1=ar= at End Raf ar= at n=rh=*e4aa=-
of Period f
R=e4nnfne Annemen of Period Additions en11-ted Current Narv nrrent (A=n=nen in eMa==M a) i 1980 Si
$12 L.E. Barret:(1)(4)............
$ 13 1979 53 J.3. Ladd(1)(2)(3)(4).........
S 53 6
K.R. Lhiting(1)(2)(4).........
6 1
1 12 L.E. Barrect(1)(4)............
14 1978 2
2 51 J.3. Ladd(1)(2)(3)(4).........
55 K.R. khiting(1)(2)(4).........
162 15 6 1
5 27 J.H. Moore (1)(4)..............
27 19 1
13 L.E. Barret:(1)(4)............
33 48 C.O. Ihomas(1)(4).............
48 (1) Officer of Ladd Petroleum Corporation a wholly-owned subsidiary of Utah International.
(2) Director of Ladd Petroleum Corporation.
(3) Director of Utah International Inc.
(4) The major portion of the current receivables due is secured by pledge agreements covering shares of common stock of General Electric Company.
Remaining balances are secured by first mortgages on real estate.
Prior to the acquisition of Ladd by Utah the above-named employees purchased lots in a real estate subdivision owned by one of Lad..I's subsidiaries on the same terms as those offered to the general public.
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GENERAL ELECTRIC CCMPANY AND CONSOLIDATED AFFILIATES SrFDULE III - INVESTMENTS IN, EQUITY IN EARNINGS OF, AND DIVIDENDS RECEIVED FROM RELATED PARTIES Nonconsolidated Pfmme Affiliates L-General Electric solidated Associated Credit Corocration Uranium e - fes Preferred c-n Other Total Minfrg (Dollar amounts in =f11 tons)
Shares Shares Amount Amount (1) Amount Aff41f ate Amount (2)
Balance, January 1, 1978......
450,000 1,459,500 S600 SS
$605 S 87 S323 (3)
Additions :
27 (4) 309,000 62 1
63 Investments................
3 Advances...................
(4) 77 Equity in earnings (loss)..
77 Deductions:
(62)
-(5)
(1)
(62)
Dividends..................
(87)(6)
Dispositions...............
Repayments on advances.....
(4)
Balance, December 31, 1978....
450,000 1,768,500 677 6
683 87 257 (3)
Additions :
613,500 123 1
124 (4) 49 (4)
Investments................
74 8
Advances...................
1 90 90 Equity in earnings.........
Deductions:
(73)
-(5)
(5)
(73)
Dividends..................
(1)(6)
Dispositions...............
(8)
Repayments on advances.....
Balance, December 31, 1979....
450,000 2,382,000 817 7
824 157 301 (3)
Additions:
92 (17) 16 (4) 461,000 92 Investments................
48 22 AJvances...................
20 115 115 Equity in earni:gs........
Deductions:
(92)
-(5)
(7)
(92)
Dividends..................
(4)(6)
Dispositions...............
(6)
(1)
(1)
Repayments on advances.....
3alance, December 31, 1980....
450,000 2,843,0C0 $931
$7
$938 S188 S342(3)
(1) Represents investment in one company at December 31, 1980, December 31, 1979 and December 31, 1978.
(2) Includes advances of $57 2.1111on, S47 million, S50 million and $52 million at December 31, 1980, December 31, 1979, December 31, 1978 and January 1, 1978, respectively.
l (3) Represents invastments in 67 ccmpanies at December 31, 1980 (59 and 55 at December 31, 1979 nd December 31, 1978, respectively) which are not consolidated but in whien the Company owns 20% or more of the voting stock and I
are valued by the equity met Mod.
(4) Includes acquisition of 13 new ccmpanies in 1980, 8 in 1979 and 7 in 1978.
1 (5) This wholly owned affiliate is valued at the lower of cost or equity, plus advances.
Dividends were $20 million in 1978 and S1 million in 1979.
No dividends were paid in 1980.
See note 12 to financial statements for additional information.
(6) Represents the disposition of 5 companies in 1980, 4 in 1979 and 5 in 1978; and includes in 1978 the effact of the change in status of Marcona Corporation from an Associated Company to a wholly owned consolidated affiliate.
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GENERAL ELECatIC COMPANY AND CDNSOLIDATED AFFILIATES SCHEDUIZ V - PROPE3C'Y, PLANT AND EQUIPMENT Tammehnld Buildings, costs ami Mintral Iand and structures Machinery
=m=> hen ri w property iw.
and rdated ami plant tader plant.and ments equipment
- stuip-me construction eauifm==r Total (amrmeen in =f11fnas)
Balance, January 1, 1978....
$121
$1,878 S4,306
$167
$1,043
$7,515 Additions (1)............
4 134 629 74 214 1,055 Retirements or sales....
(1)
(30)
(191)
(5)
(5)
(232)
(10) 1 (7)
(4)
Other changes (2)........
Balance, Dece:nber 31, 1978..
124 1,983 4,737 232 1,252 8,328 Additions (1)............
4 142 755 146 215 1,262 Retirements or sales....
(4)
(30)
(198)
(4)
(11)
(247) 22 O the r changes (2)........
1 3
20 (2)
Balance, Dece nber 31, 1979 125 2,098 5,3 14 372 1,456 9,365 Additions (1)............
17 27 6 1,090 90 47 5 1,948 Retirements or sales....
(3)
(46)
(206)
(5)
(14)
(274)
(4) 1 (1)
(4)
O ther changes (2)........
3139 S2,329 56,197 S453 S1,917 S11,035 Balance, Dece:nber 31, 1980..
(1) Includes transfers between plant and equipment classifications.
(2) Includes transfers to and from other accounts.
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GENERAL EI.ECIRIC COMPANY AND CONSOLIh*ED AFFILET SCHEDUTJ. VI - ACCUMULATED DP RECIATION, DEPLETION AND AIOETIZATION OF PROPEETT, PLANT AND EQUIPMILNT Buildings, Nftwem1 Land armi strienrras M f ='y Imase-property 46 armi related armi equip-hold plant and ments equilment ment (4) costs equitment Total (Amounts in millions)
Balance, January 1,1978....
$13
$ 917
$2,659
$41
$300
$3,930 95 396 7
78 576(3)
Additions (1)............
(20)
(164)
(5)
(2)
(191)
Retirements or sales....
(10)
(1)
(9)
Othe r changes (2)........
Balance, December 31, 1978..
13 991 2,882 43 37 6 4,305 Additions (1)............
1 101 430 9
83 624(3)
(23)
(155)
(4)
(6)
(188)
Retirements or sales....
11 10 1
Other changes (2)........
3mh ~, December 31, 1979..
14 1,06v 3,167 49 453 4,752 112 491 9
95 707(3)
Additions (1)............
(34)
(167)
(3)
(10)
(214)
Retirements or sales....
10 1
9 Other changes (2)........
Balance, December 31, 1980..
$14
$1,148
$3,500
$55 S$38
$5,255 (1) Includes transfers between plant and equipment clas sifica tions.
(2) Includes transfers to and from other accounts.
(3) All charged to current earnings 1
(4) Includes elimination of intercompany profits as follows:
January 1, 1978........................................
$14 l
Provision credited to operations...................
1 January 1, 1979........................................
15 Provision credfced to operations...................
1 December 31, 1979......................................
16 Provision credited to operations...................
8 December 31, 19 8 0...................................... S 2 4
GENERAL ELECTRIC COMPANY AND CONSOLIDATED AFFILIATES SCHEDULE VIII - VALUATION AND QUALIFTING ACCOUNTS Allowance for losses deducted from assets Accounts and notes receivable Investments (Amounts in millions)
Balance, January 1, 1978.......................
S 96
$15 Charged (credited) to profit and loss......
15 (1) 4 Charged to other accounts..................
D e d u c t io ns ( 1 )..............................
(13)
(3)
Balance, December 31, 1978.....................
98(2) 15 Charged to profit and loss.................
16 1
Charged'to other accounts..................
Deductions (1)..............................
(12)
Balanca, December 31, 1979.....................
102(2) 16 Charged to profit and los s.................
26 1
Charged (credited) to other accounts.......
4 (2)
Deductions (1)..............................
(3)
Balance, December 31, 19 8 0.....................
$129(2)
S15 (1) Represents write-offs and related charaes net of recoveries.
(2) The year-end balance is segregated on the Statement of Financial Position as follows:
1980 1979 1978 Current receivables..................
$103 S 89 S 79 Other assets (long-term receivables, cue. comer financing, etc.).............
26 13 19 s129 S102 3 98 F-5
GENERAL ELECIRIC COMPANY AND CONSOLIDATED AFFILIAT'S SGEDUIZ II - SHCET-TERM BORROWL%S The average balance of short-term borrowings, excluding the current portion of long-ters borrowings, was $714.8 million during 1978 (calculated by averaging all month-end balances for the year).
The maxi:num balance included in these calculations was $747.6 million at the end of August 1978 and the average effective interest rate for the year 1978 was 14.3%.
This average rate represents total short-ters interes t expense divided by the average balance outstanding.
A sunmtsry of short-term borrowings and the applicable interest rates is shown below.
Short-term borrowings (In =f 11 t ons )
December 31, 1978 Average rate at Amount Dec. 31 Parent notes with trust departments
$302 10.24:
Consolidated affiliate bank borrowings 362 20.$8 Other, including current portion of long-term borrowings 296 S960 Reference is made to note 14 in Notes to Financial Statements appearing in the GE 1980 Annual Report to Share Owners which contains information with respect to short-tera borrowings for 1979 and 1980.
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