ML19345H001

Annual Financial Rept 1980

ML19345H001
Person / Time
Site:	07001308
Issue date:	02/20/1981
From:	Rosalyn Jones, Welch J GENERAL ELECTRIC CO.
To:
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ML19345G999	List: ML19345G998 ML19345H001
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NUDOCS 8104230009
Download: ML19345H001 (48)

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. ~. _.,. - _. _ m._ = ] ~ t GE 1980 Annuci R:ptrt ~ 4 e. m,-( e-. ~... ( '? t + 4 s r. 1 - 7, i u. m Contents J; 3. ~ r .A. 251 ManagementI - ig, f. -3 RnancialNghlights. 4 CommentsfromtheChairman " N 28 ; Anancialreview -W, + ~ / _* . l33 ' Reportof management and Chairman-elect

1. 6 Consumer Products and Services 7 s.

, f 33 : Report cfindependent , l 9 s industnal Products and Components. ~ ;. certified public accountants.. .:G - 34 Anancialstatements '<~ ,~ G Power Systems - IS -Technical Systems and Materfals ; 3, - t A 37 i Summaryof sigmhcant acctmoting , / O ~ policies WF"-5,. ~ ' ' ~ 18l' Natural Resources p y

• J I '/.. -'38 Notes to financia3 statements! ~ ' ' ' '

Ef 201 intemasonal W '22' Boardof Directors ?4 i,,;?,. 44 Segmentinformation ':( m ~ . '. A 46 y Ten-year summary [ *,ki 24, GE people.. t4 + - r-r ,J.> t ,.r n s ' ( '. , j,. ;.

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• GE." "Gener al E!ectric" and "Cornpany" are A seociate Edttore:Devers E. Logan; Edna Vercini :

GE rnonogram. rs sought mrough used on tf e eas:s of consokdation oescribed on page - Financlel Editor: Sidney D. Spencer. th3 wide arversity of growm buse

37. Uruass omerwtse irdicated by tf's content, the terms Editorial Board: Frank P. Doyie, Vice President-Cor-nesses presented in this Artnual

'Utan" and " Utah trterr.abonar n ean Utah Intama-Derate Ernployee Relatons; Frederick N. Robmson. Reoort. Havng 'namtamed its . tional Inc., as wen as all of its *afutatas and "associ- . Mamger, Corporate Editorial Ptograrr.s;.- earegs momentum through the '. aled cornpanies" as those terms ate used on page 37, John L IngersoG, Manager, Corporate Investor q., . g .,l . ;

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Comrnunscetions i. ic. ; i; t ' s g-O S. recessionary penod of , J BEuE B&L $ EIICTIIt.$;a..nd GE are registered ' f Art DirectioenJack Hough Associales,Inc? T f* 1980. General Electric antice w potes a now surge of growtn, *

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Ccmm:nto frcm tho Chcirmen " Innovation and self-renew' l: a cnd the Chairman elect these are themes that i characterize General Electric as we enter a new era." The significance of these sales and earn-ings is not merely that they set new ! eve!s in a

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year when profits for industry generally de-clined. More importantly, they were achieved in ayear when your Company snarply in-I creased investments in new plant and equip-ment. new technology, new product develop-i l ment and new business ventures. U.S. business today finds itself enalienged .g g by aggressive overseas competito rs. N ational . h productivityhasbeendec!iningand inindus-f try after industry. product !eadership is moving l to other n ations. Companies that refuse to re-l j new themselves, that f all to cast off the old and emorace new technologies. cauld well find I l themselves in serious decline in the 1980s. We are determined that this shali nct hacpen I toGeneral E!ectnc. l Self-re newal. Your Company is engaged in a l process of intemal change that will transform i the ways we design. manuf acture and distnb-l } - 3. ute our croducts and services in the 1980s.We l sA are encouraging our people to probe con-stantlyfornewmarkets newtechniquesand Thefoinisigning of these comments sig-new business opportunities. nals the approaching change of erecutive This stress on innovation nas been gath er-leadership a t General Electric. On the re-ing momentum and is perhaps best il!ustrated 4 firem en t o f R eginald H. Jo n e s (righ t) on by the change in our sources of earnings. as ( Aprif f,1981, John F. Welch,Jr.,willbecome emchasizedinlastyear's AnnualReport. As l Chairman and Chief f tecutive Officer of the 1970s began,80% of ycur Company's yo ur Company.He willbe the elgh th person eaming s cam e f rom its traditional businesses to hold tha t office since the founding of GE in the manufacture of electrical and e!ectronic l in the nineteenth century. ecuipment. These businesses remain healthy JohnF.Burlingame(middleleft)and andgrowing atthcughtheynowprovidefess Edward E. Hood,Jr., con tinue as Vice Chair-than half of ourearnings.The majontyof our men and Executive Officers with erpanded earnings are presently denved f rom growth responsibilities forrealignedstaff and businesses in man-made matenals. natural operations. resources. aerospace and transportation l . 'v ecuipment. services and oth e r new lines of l )3 General Electnc's diversity and financial opportunity. And 42% of our earnings now \\ '- strengths enabled it to turn in a solid perform-come f rom international activities. compared ( ance in 1980 despite adverse economic condi-with only 16% adecace ago. ~.S. tions in the U.S. and many f oreign markets. The status of oureurrent businesses is de-r Sales of $24.96 billion represented an 11 % !ailedinthepagesof this AnnualRecort.butto f i increase over 1979. Earnings of $1.5 billion, or give our snare owne rs a " feel"f or the present U $6.65 per share, were 7% above 1979 levels. mood of self-renewal at General Electnc, fet us i 4 Ar*rtal Aeoort 1980 l l l

FincrTcici highlighta ,t ...o: l' $j, Percent tooiiar amounts in mnhons: cer. snare amounts in collarsi 1980 1979 increase For the year Sales of products and services to customers $24,959 $22,461 1 1 . Otherincome 564 519 9 Total revenues 25.523 22,980 11 Net earnings applicable to common stock 1,514 1,409 7 At year end Total capitalinvested $10,447 $ 9,332 12 % Share owners' equity 8.200 7,362 11 Short-and long term borrowings 2,093 1,818 15 Per share Net earnings $ 6.65 5 1.20 7. Dividends declared 2.95 2.75 7 Share owners' equity -year end 36.00 32.31 11 Measurements Operating margin as a percentage of sales 9.0 *'. 9.5% Effective income tax rate 38.4 39.9 Earnings as a percentage of sales 6.1 6.3 Percent earned on average total capitalinvested 17.3 17.6 Percent earned on average share owners' equity 19.5 20.2 Borrowings as a percentage of total capitalinvested 20.0 19.5 l l I l l l l l l l l The General Electnc investor 3 1

ccmment on the Ccmp any's response to sev-Energy. Frem its beginnings. Generd E!ectnc eralfundamentalchaFengesof the1980s. has been a produceref energy-conversion equipment fof electnc utdities. But thatis now Electronics. There is wide agree ment that the just a modest proporton of our tctalinvofve-new electronics wdl be the dominant tecnno-ment in the rapidly growmg energy field. IcgL:alforcecf the1980s. Andsowehave Through Utah internatenars ecal mines been engaged in a Comoanywide effcrtto ap-and Ladd Petro!eum's cd and gas weus, as a eil ply the new micrcelectronics and the reiated as c ur nuclear fuel operaticns, we are sup-information-based technologies to every po3 pliers of basic fuel.Our equipment ocwers ma-sible product, service and process in G E. eninery in the mines and dniling fields, our The cercerate commitmentis e-: bodied in diesei-e!ectnc !ccomotives haul the cc al. r.ind hundred-mi!! ion-cctlarinv e stments in the con-cur gas furtines power the pipelines. structicn and accuisaten cf new e!ectronics And as the world stnves to reduce rts exces-taDoratcriesandmanufacturingcenters We s ve dependence on one energy scurce-pe-have estaclished an indu stnal Eiectronics troleum-G E's researen actnnties see< cem-Grcup and an Information and Ccmmunica-mercial breakthrougns in sigruficant new tiens Systems Grcup. G E training programs energy technologies such as systems :o con-are underway to bnng the think:ng cf ourman-vert ecalinto c!ean synmenc fuelgas. agers and tecnnical peccle up to the state of Anctner prcfitacle f acet cf the energy mar-the artin the new e:ectronics.and we are viger-ket is the redesign ef our products te censerve cus!y recruitng mcre electronic engineers. ene rgy-frem energy-e fficient !ames. accli-TheproperedpurenaseofCalmaCem-ances and meters to fuet-savingjet engines. pany. a leacing producer cf interactv e grach-ics ecuipment. and the acquisiten of Intersil, a Innovation. P erhaps your Comcany's ecm-mak er cf advanced microelectronic cnips, are mitment to broad-based innovation is best ex-censistent with eur intentien to be at the !ead-p ressed by rts nsing investmentin rese arch ingedgeofnewtechnology. and deve'.coment. Since 1977, we have in-Yourmanagementisceterminedtobe creased G E-funded R & D experditures 85*'. a leacerin the electronics revclution. t 5760 minicn.Tctal R & D expenditures, witn extemalfur ding. reached $1.6 biHicnin 1980. Productivity. Afteracecadeof s!cwproduc-GeneralElectneisnotmerefyinthee ectri-tivity growth. U.S. industryis poised fer a majcr cal bus tness. or any cther part cular cus: ness. s urge ct investm ent in n ew eguipment-the This Comp any has moved forward t3 a cew so-caHed~re-industnalizationof Amenca.** dimens g.n of industnal capatility that inves-FcrGEtheprocesshas a!readytrgun. ters are enfy teginrung to recognize. We are in Your Company nas snvested atmcst s6 bil-the cusiness cfcreacng business es to nnuci-lien over the past fiv e y e ars. ine'uding ne arty pate and serv e the n eeds of a changing world. 52 billion in 1980. to ucgrade its productive This is. at least in scale. som etning rare. And cacacdites. Interachve grapnics for ccm-it can make a constructive centnbutinn to a puter-as1isted design. manufacture and test; worto that is sinving descerate9 fer acceler-recotc.; programmatf e ef ectranac centrof s; ated ecencmic and social deveicement. energy-effic:ent dnves:these are among the advanced technologies tnat are transferming ourfactenesintosomeof themestproductive. k quality c0ntroHedcperatensinthewortd. ~ And what we deve!co forcurown factones we will th en sell to our industnal custemers-a John F.We'en.Jr. productvity-improvem ent mark et that is gr0w-Chairman-elect ing w ell over 20*. per annum. With our own factories as a w cridwide laboratory fo r the de-veicomentof acvancedmanufactunngsys-b 'r M-C tems. and a customer case ttat urgently feels th e n eed f o r productivity b re akthrougn s. G E Reginaid H. Jct'es. Chairman excectS to be a leader in ecuipping the auto-ar'dChief ExecutveCfficer matecfactor esof tne future. Fecruary20.1981 deGeva E~ec ems:::r 5

/ Consumer Earnings are sustained during recessionary period Products and Services P** ~ ' (in milhor's) 198o 1979 1978 1977 1976 Peverses* 55.714 s5.448 s4.865 s4.215 s3.510 Net earnngs* do7 401 377 323 261

• tnc:uces net earmngs or General Eecnc Crecit Corporacon 115 30 77 67 57 Consumer Products and Services Sec'or pany. It is the largest nonmanuf acturing com-s revenues and eamings were slightly ahead pany in equipment financing and leasing, of 1979, despite operating in an environment handling leasing activities ranging from com-characterized by a sharp decline in appliance puters to supertankers. Leasing is GECC's shipments and extremely volatile interest fastest-growing business. It pioneered

~ Paulw vanCrcen rates. Eamings were led by the strong per-leveraged leasing and is a world fersder in y}"['j,1 C'yyd formance of General Electric Credit Corpora-that business, with over $5.1 billion of indus. Procucts arc services Secer tio*1 (GECC), the Company,s wholly owned trial-and transportation-equipment lever-nonconsolidated finance affiliate. Sector re-aged leases in its portfolio. sults reflect effective management actions to GECC also is a leading fender in home control costs, strong consumer acceptance products retailing, home equity financing and of new products, and an improved balance a wide array of commercial and industrial between product and services businesses. equipment industries. While sustaining earnings, the Sector con-tinued to fund programs for the development Major appliance businesses, serving retail of new products and services to meet con-and builder markets with a complete line of sumers' changing lifestyles and the evolving GE' and Hotpcint* kitchen and laundry needs of business customers. These pro-equipment, had lower earnings in 1980 on grams, designed for future growth, are main-about the same leve; of sales as in 1979. The taining a strong emphasis on innovation, recession, crecit restrictions and a weakness quality and productivity improvement. in housing severely affected the U.S. major GECC earnings grew 28% in 1980. As for aopliance industry, causing 11% fower unit the product businesses, sustained cost im-shipments, excluding microwave ovens. provement actions and continued emphasis General E!ectric moderated the eamings im-on new and improveo products enabled them pact with new productivity programs and to outperform the industry and limit their strong sales of innovative products. These eamings drop to 6%. improvements position these businesses to In 1980. Sector operations accounted for remain a major contnbutor to Sector earn-22% of GE revenues and 27% of earnings. ings as the Company continues to respond to consumers' changing wants and needs. General Electric Credit Corporation Industry unit sales of the microwave oven eamed $115 million in 1980, up from $90 mil-were up 32% for the year. In this growing lion in 1979, and provided 28% of Sector business, GE has captured a leadership 00-earnings. Growth in earning assets of more sition with product improvements and cus-than $1.0 billion as well as improved operat-temer acceptance of the Spacemaker* unit. ing efficiencies contnbuted to the excellent The positive momentum of the dishwasher results (see page 40 for condensed GECC line was ennanced by strong customer ac-financial statements). ceptance of the top-of-the-kne Model 1200. With total assets of 59.3 biilien. GECC ranks To serve customers cetter. GE placed in-as the largest U.S. diversified financial com-creased empnasis on procuct service. In-6 Armai Pecort 1980

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s g7 77 g ;-;;g;m Q a leading supplier of quartz tubing, rods, bouYes N3wMulti-Vapor illamps. illume-e [,",9 t"'s ent),open n gh :, d f. W , 3 and crucibles for the semiconductor industry. n,, ,n iiverlighting at3s*.lowerenergy costsbecauseof tr eirimoroved

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g g, Housewares and audio operations increased effic:ency.Thenew rnetalhalice ., o C_~. sales and maintained earnings in a highly lamDs combine high hghtoutput t ' Competitive industry that experienced signif.i-perwattw:th warm ancancescent. D necolor. "i strong brand-name recognition. GE intro-cant cost pressures in 1980. Capitalizing on its 4 duced new products that offer quality with , ~ value, including the powerful Food Processor k. Supreme with a side discharge chute for con-tinuous slicing and shredding, and program-mable AMeFM clock radios and ultra-slim port-able cassette recorders featuring advanced electronics at affordable prices. i u. i Television receiver operations reported in-creased sales in 1980 with earnings about Tg A ^] the same as the previous year. y

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' N. .f Theater, the Company's new projection TV set, played a major role in the surge of interest in projection TV. Sales of video cassette re-i corders also are on the upswing. In 1980, GE i formed joint ventures with three companies to f a support the U.S. introduction of the VHD video disc system. The home video disc system is I..W" !- N expected to be the next major product innova- -t i tion in consumer electroriics. Broadcasting and cablevision businesses E'.__ in 1980 set new records in sales and earn-ings. General Electric operates three VHF ~~ television stations and three AM and five FM purchase and renovation of this systems. New products included Remote radio stations. In cablevision, where GE op- [ a'sfinaNc'el y Energy Management (REM!) control for in-erstes 13 systems encompassing 66 fran-us GECC's reat estatafinancialser. dustrial Lucalox' fuminaires which uses ra-Chited communities, customers were added vices coerations.The former apart-dio signals to command the luminaires to at a 22% annual rate in 1980. GE ended the toy 2$u'n1tco comInSu$. d change wattage settings. year with about 260,000 basic service and The electronic Halarc! metal halide lamp 122,000 premium-service customers. is targeted for introduction in 1981. It is the first of a family of long-life lamps that use The outlook: With a gradual economic upturn about one-third as much electricity to gener-forecast for 1981, and favorable demograph-ate the same amount of light as the incandes-ics in the '80s, the Sector's product busi-cent bulbs they replace. nesses look forward to healthy markets and Additionally, several operations continue sustained growth resulting from product inno-to grow outside the lighting industry. General vation and emphasis on quality. Electric is a major supplier of tungsten ana The Sector also sees good opportunities to tungsten carbide powder used in manufactur-expand its business participation throughout ing cutting tools for metal fabrication, oil drill-the decade in the rapidly growing finance and ing and mining. And the Company has become services markets. 8 Annual Pecort 1980

I'ndustrial Continued growth for most major busin sses Products and Components ma, (in mdlions) 1980 1979 1978 1977 1976 p '7 - Y' Revenues $5.157 54.803 54.124 $3.698 $3.270 d Net earnings 315 272 223 191 160 ,p industrial Products and Components Sector Tran sportation systems businesses contin-boosted its earnings 16% during 1980 on reve-ued to grow as quality suppliers of diesel-elec-nues 7% ahead of 1979. The improved earn-tric locomotives, motorized wheels for off-ings were paced by operations serving trans-highway vehicles and transit propulsion equip-po rtation, contracto r equipm ent and industrial ment as well as drilling drives. Earnings im-motor markets, with most major Sector busi-proved considerably on slightly higher sales. nesses contnbuting to the growth. Sector op-Intemationallocomotive orders increased Jxs A.Baner erations include motors, industrial electronics, in 1980, and the largest contract for locomo-e Pmsidentand Qutige Contractor equipment, transportation sys-tives in the Company's history was negotiated n n Products and Components tems, apparatus service, and supply services with National Railways of Mexico. The ten-year s:: tor for electrical and related products. agreementcallsfordeliveryof 60to100!oco-During the 1980s, industry's need for new motives ortheir component sets each year. / products and services to improve productivity The locomotive line was expanded to in-y and increase energy supplies will provide f a-clude the new B36-7 modelwhich features l vorable opportunities in markets to which the furtherimprovements in fuel efficiency and l Sector expects to bring continued product pulling power. This 3,600-hp unit uses G E's l leadership and innovation. The industrial elec-highlyreliableandadvancedrailroad typedie-tronics field should be a particularly important sel engine. Although the U.S. locomotive mar-area for Sectorgrowth. ket was relatively weak in 1980, overthe next in 1980, industrial Products and Compo-few years it is forecast to strengthen. Railroad l nents Sector accounted for 19% cf total GE haulage is expected to increase as a result of revenuesand21%of theyear'searnings. both the fuel efficiency advantage of railroads over trucks and increased coal transport. Co ntractor equipment operations experi-High levels of mining produced bnsk de-enced an excellent year, with increased sales mand for General Etectric motorize d wheel and earnings. Strength in commercial con-drives used on hau! age trucks. Also, extensive struction markets offset the depressed levels oil-well drilling in 1980 stimulated a sharp in-of residentialconstruction. Industrial plant and crease in demand for the Company's drilling equipment spending remained strong, and in-drive systems, ternational oper 7tions showed improvement overtheprevious year'slesel. The motor businesses of G E produce a large G en eral Electric man u f actu res a wide vari-assortment e f motors f or residential and in-ety of products associated with electricalcon-dustrial applications. In 1980, they had some-trol, distnbution and circuit protection. These what higher earnings on slightly lower sales. G E product lines include low-voltage circuit The industrial motor market was strong, re-breakers, motor controls, wiring devices, pro-flecting industry's emphasis on productivity grammable lighting control, and wire and ca-and customers' needs for energy-saving mo-ble. New products introduced by the Company tors. The market for high-efficiency industrial in 1980 included a line of low-voltage switch-motorsis growing at more than 60% peryear. gear that provides increased operator safety The component motor marketwas weak as a andimproved reliability. resultof depressed appliancema ket s. The General E! ectr :!nvestor 9

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creating nemntegratedeircuitsis Because of increased energy exploration microprocessor-based digital control. The cYog a soNn s.Nc. an worldwide, sales of motors and generators for system prolongs motor tife, and can teduce by y acquired affiliate of General Eiec. mining and oildrilling were high. Also, exports uptoone-half theamountof powernormally tnetnatis alsoa!eacing producer of smaller component motors grew dramati-consumedbytheapplicationof aconstant-ofmicroelectronicorocucts. Cally dun 99 theyear. speed motor. N Among other new G E products off ered was Indu strial electronics operatio n s had the Series Six family of programmable con-L higher sales although earnings were down, trols, designed to increase productivity and reflecting, in part, the impact of new invest-lowercosts. ment programs oriented toward products for As part of G E's new thrusts in high technol-factoryautomation. ogy, two electronics-related acquisitions re-General Electric continued its role as a lead-centlywere announced. in February 1981, ing supplier of electrical and etectronic compo-General E!ectric acquired intersil, Inc., a lead-i I nents and systems to power industry world-ingsupplierof advancedintegratedcircuits wide. New technological developments and data acqu sition and memory products, for i includedahigh-efficiency. static.adjustal - $235 million. Intersil will continue as a major i speed drive system incorporating the late ' su pplier to the merchant market as well as a 10 Annual Reoort 1980 l

.. ~ ? I w source of integrated circuits for G E's diversi-GeneralElectncSupplyCompany which i I fied productlines. Also,in December 1980, the reported improved sales for the year. This i Com pany agreed to acquire Calma Company, nationalnetworkof supplycentersprovides [ l l a subsidiary of United Telecommunications products of General E!ectnc and other compa-l l Inc., for up to S 170 million. Calma is a supplier nies to customers in the centractor, industrial. [ of interactive graphic systems. which include commercialand utilitymarkets. [ technologies used for computer-aided design

• Apparatusserviceshcps,salesofwhich and manuf acturing.

wereup althoughearningswereicwer. In addition, a S30 million investment in new With continued emphasis on expenditures electronics capability at Cha rf attesville, Va., aimed at longer-term growth as well as broad-was approved in 1980. Construction willin, ened service offenngs,the service shop l clude manuf actunng space fer industrial con-network was expanded to 197 tocations fne*w*'GNe$eNrhNa. trols and a new laboratory to help bolster G E's wortdwide. The shops provide inspection, biecontrois.Ecucced with role in the industrial electronics revolution, maintenance, repair and rebuilding services l rnecroorocessors.me units guice forindustnal equipment manuf actured by uen$*s'rn$e"n*Z$$ Service a nd distribution businesses con-General Electric and other companies. Forty l process contros. ductedbythe Sectorinclude: repair facilities in this inte mationai network are concentrating on the f ast-growth electronics service market. i The outlook in the 1980s for mark ets served s t' b__ by industrial Products and Components Sec-tor is f avorable, based on the nation's need for '* I ' ' ~ U production-and energy-related products. I f "f The Sector has strengthened its competitive [ position by developing leading-edge products - * *g and services, and continues to expand its mar-l t m c keting presence abroad. While some opera-tions may b e aff ected by linge ring economic unce rtaintie s. most anticipate imp. cved mar. p nr 4> ket conditions. Residential construction mar-s + b kets are forecast to improve, although com-f mercial and industrial construction markets j areexpectedtodec!inein1981. l

• TheU.S.locomotivemarketisforecastto improve in the earty 1980s. International mar-l

/ , 4,4r " ' ductivityshouldstimulatedemandforGE's l ,..wg Y . kets primanlyindevelopingcountrieswith f _ h. transportation infrastructure needs. should f '" 7 y [C - remainstrong. l 4 g. 4 [ .. J. 1

• Continuedhighlevelsofminingandoil l

k 4 -A ~ ' ^ h !-(([ .,7 dnlling are expected to sustain demand for C7 v ?- ~ g 3,f...- motorized wheels. drives and motors. lj i 4'- Emphasis on energy conservation and pro-

• 3.'

fn, I ~ %[- %[- :. Industry'squestformoreefficientm electroniccomponentsandsystems. l L4 ~Q..-

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4 h' , (" is expected to produce significant G E sales oppCrtunities. -A~.'- ..\\% Locoractrverepairancovernauf at f l7 m. <h, 's

• Growthinworldwidemaintenanceandre-l theCoracany s borneil.N Y.. serv-l

4.,

,,.v pair markets served by General E!ectric's ap- .ce snco arecartef tne ct'enngs e ce reoIa catti-WT' [ paratus service shops is predicted to continue j ~ acoar :usse .atesin 19 courtnes . ~ ~ '. :'... :. :.e/J throughoutthe 1980s. i The Geceral E ec:nc inves:cr 11 l

m Power Earnings growth continues despite slow markets Systems On trunions) 1980 1979 1978 1977 1976 J@ Revenues s4.c23 53.564 s3.486 s3.218 52.998 Net eamegs 141 114 93 75 61 g I ]f General Electric's Power Systems Sector, a level of new orders for these larger units to f world leader in serving markets for electrical be lower than in 1979. Notable progress. u-generation and power delivery apparatus,in-though, was made in winning domestic in-7 creased its 1980 earnings by 24% on a 13% dustrial cogeneration orders for smaller-size rise in revenues. Good earnings in steam steam turbine-generators. turbine-generator operations and the ex-The orders backlog for steam turbine-gen-panding installation and service engineenng erators was $2.7 bi!! ion at year-end 1980, of Herman A.HiH business more than Cffset declines in gas which 31.3 billion is scheduled for shipment turbine and power delivery operations. after 1985. The comparab!e back!cg for 1979 s an Power Systems Sector The improved Sector results reflected con-was $3.9 bil! ion, of which $2.0 b;llion was tinued emphasis on productivity gains,in-scheduled for shipment after 1984. creased penetration of international markets, Mechanical drive turbines showed nigher and expansion of equipment maintenance eamings on higher sales compared to 1979. services. Selling price increases only par-General Electric foresees major long term tially offset inflation-driven cost increases, growth for this business in intemational ap-The Sector's strategy for earnings growth plications such as petrochemical $ ants and is based on strengthening its leadership in emerging energy technologies involving coal a broad range of energy technologies, and liquefaction and synthetic fuels. diversifying into new energy technologies The Sector's marine propulsion business such as those related to synthetic fuels and consisted primarily of U.S. Navy projects, advanced cogeneration. Power Systems businesses contnbuted Gas turbine sales were higher but eamings 15% of total GE revenues in 1980 and 9% were down, due principally to tighter margins of net eamings. Presently, high reserve caused by stiff foreign competition. GE gas margins of utilities and uncertain national en-turbines contir.ued to maintain their world ergy policies continue to slow demand for leadership. being used for electric utility power generation and delivery equipment. peaking and mid-range power, and for indus-The backlog of unfi!!ed orders was $11.0 tnal applications such as natural-gas pipeline billion at the end of 1980, compared with pumping and powering offshore oil platforms. $12.1 billion at the previous year end. The The Company's highly efficient STAGS ( decrease from the 1979 year-end backlog (steam and gas) combined-cycle turbine l was attnbutable pnmanly to elimination of or-plants continued to be attractive offerings, l ders for steam turbine-generators no longer particularly for foreign customers. expected to go into production, and also to in 1980, the Sector delivered the first of a Sector sales that exceeded new orders. line of large gas turbines to serve the intema-tional electric utility market. This advanced Steam t' 9ine-generator earnings were 105-mw heavy-duty gas turbine, the largest well us., trem 1J79 on approximately the such unit ever built by the Company, is now same level of sales. part of a combined-cycle power system oper. As expected, the sfuggish demand for ating near Kirchlengern, West Germany. large steam turbine-generators caused the General E!ectric announced in 1980 that it 1 92 Annual Recort 198o

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.1 ,$,, 4 4 -<.4 4 y.I e-.hI E',,f 9.' ?' t [ * :5 g, [ b -.. p' g^. i.=. 4 .f TN,. (; *,, p.h.. .b' J.g.y ;g,, F;.. . +.l3 4 ap d r }<h; y { ::,,g'9j;f.5.i, y *g..,v; ?.. g$ 4... r .a 7, ,,.r r ". f,.s,. : ',,<.2 i.)f p., .u j ..g' + e, t,. 4 s l f) 4 Exoorurcers ar GE stearmur- .s cartic:cating :n a $300 mdhen coal gasifi-continuing.osses for this ousiness. IeE r)3 cation combined-cycle demonstration piant. Nevertheless. the nuc! ear fuel f aoncation r%a P'anned for ccmcietion in 1983. this 100-mw and services segments of the business are casteaar ocaer a ar' accaarec nstasat.cr ccatecor te f acdity is des.gred to convert cca: to syn-profitacie. and the nuclear 'uel and services easte-veciter,rean coast thetic gas. hen c:ean and ourn t to provide needs of U.S. and foreign utilities offer ongo-economicai e!ectricity GE also <s supplying ing occortunities. Additional arge orders 'or the gas and steam turoine-gererators for this fuel were received n 1980. and Power Sys-ectnc cower plant. tems instatiation and service engineenng cusiness. in cocceration with the nuclear Nuclear operations continued to incur a ousiness. nas expanded GE's nuclear modest ' css. As stated n prev ous Annual services offenngs. ~ Recerts. GE s max:ng substantial expendi-The backlog of orders. nc:uding nuc: ear ures on engineenng and ceve'coment n reactors. fuel assemblies and plant services, succcrt of nuc: ear orojects :n the cack cg totated 55.5 bdhon at year erd 1980 of T"ese excenditures acced to the effects of wnicn $19 bihicn is scheduled for snioment V oetermerts of shipments and cance ations after 1985. The comcaracie back!cg 'or '979 n cf nuc ear craers. are exoected 'c 'esuit n was 55 3 ochon of unicn 52.5 onhan was ' e Gerera. E ec nc rvestc' '3

i 4 l Synthetc Ne'scovecomentat installation and ssrvica enginscrmg busi-Nempe$tureNeY:hed nesses reported record orders, sales and gas turtane wnien wouia tein. earnings in 1980. This continued growth was i j stasedin actvancec synfues achieved by expanded offerings of field engi-j [c]',s['ansc rthishig y neering and project management services in i ,9 n,,o l ready cy the' ate 198cs. major domestic and international markets. l Highlights during 1980 included increased participation in domestic nuclear and fossil plant installations as well as in traintenance and refueling; succass in developing a market \\ to upgrade older electrical and electronic l equipment; and penetration of offshore gN y '., equipment-maintenance opportunities. i 1 V / i P ' g Power delivery businesses, producing ~ transformers, power circuit breakers, switch-ji s f _{ gear and meters, continued to be depressed, with inadequate recovery of cost increases i resulting in tower earnings. To overcome ~' .h ',- 4 l%. problems of utility overcapacity, a slowdown [ in residential construction, and inflationary y*b N costs which are not completely recoverable N l' f through price increases, these GE opera-

• / /

~ tions are working to improve their margins by f' stressing productivity programs to reduce ~(. ~ ^ ~ .N f. '[g. costs and improve efficiency. M Utility load management, an attractive i j;,,p means of energy conservation, represents a g growth opportunity, and the Comoany is po-S. sitioned to take advantage of this market. By year-end 1980,18 utilities had purchased ,k,W w ./- GE's newest time-of-use meter, and the r Company centinued the commercial introduc-tion of its Automatic Meter Reading and Con-f a y L / ?~ f trol (AMRACT)! cad management system. l } i TooroviceGE nuctearfiendengi-scheduled for shipment after 1984. Some The outlook. Power Systems Sector earn-nNs nIngEva o s s-fuel orders include reprocessing, plutonium ings are sensitive to electrical load growth. t cectsof reactorre%enng ano fabrication and waste disposal services. In To offset the relatively low load growth fore-maintenance. GEin 1980 built a view of current U.S. government policies,it is cast and achieve satisfactory resuits, the reactor se strainingcenterin highly uncertain whether such services can Sector has embarked on major programs be provided. to improve productivity and develop new In the U.S., cancellations of nuclear plants businesses. have substantially outnumbered new orders General Electric :ntends to play a major during the last six years. General Electric's role in whatever forms of energy-related management believes that resumption of nu-equipment and services are required in the clear orders will depend not only on renewed 1980s and '90s. demand for electnc generating equipment. Over the long term, significant growth op-but also on government action. Such action portunities are foreseen as the nation comes is needed to reform the nuclear licensing to grips with its imported-cil problem. GE is a process and resolve existing uncertainties leader in many energy technologies, and is regarding such issues as radioactive waste aggressively pursuing a wide range of ad-storage as well as nuclear excort policy. vanced energy development activities. I l 14 AnnualAeocrt '980 1 4 --,m

Techhical Most busin;sses grow; investm:nts for futuro continua Systems and M terials r 'M (In milicos) 1980 1979 1978 1977 1976 Revecues 57.128 56.c61 $4.745 s4.145 53.688 } Net eamegs 373 356 273 248 202 The hign-technclogy businesses constituting 340, and initial orders were received for CT7 the Technical S ystem s and M ateriais Secte r turboshaft engines to power the BellTextron had an 18% increase in revenues during 1980. 214ST helicopter. Production go-ahead was Eamingswere 5% ahead of the 1979 level as announced on the Canadair Ltd. Challenge r E strong performances in aircraft engines and executiv e jet powered by C F34 turbof ans. information and communications systems in military marxets, production centinued on off set weakness in markets f or engineered the F404 turbof an engine for the U.S. N avy's cnnsteocer T. <astrer matena!s. F A-18.andCanadabecamethefirstnon-U.S. g {' g [5j'";'n*j" Dunng 1980. the Sector continued to make custcmer to select this new fighter aircraft. The systen sancMatena:ssecro, heavy investments in advanced tecnnologies, F404 and F101 DFE advanced fighter engines inctuding microelectronics and engineered completed unprececented duracility tests. materials, which are expected to be important Boththe F101 OFE and anew modelef theJ79 f actors in General Elecinc's future growth. turtoletfiewforthefirsttimein U.S. AirForce revenuesand24%cteamingsin1980. The Sector accounted fer27% cf tetal G E F-16 s. Flight testing aiso began on the U.S. Air ForceKC-10tankerpoweredbytheCF6 50, and the C FM56 engine was selected for a pro-Aircraft e ngine businesses se rving the highly gram aimed at re-engining KC-135 tankers. competitive commercial, military, manne and Salescf aircraftenginederivativescontin-industnal markets procuced strong sales and ued on.he upswing. The U.S. Navy received eamingsincreases. its 30th Spruance Class destroyer powered Dy High fuel cosis and intensified ccmpetition four LM2500 engines. while initial LM2500 de-among airlines stimulated demand for new air-liveries were made for the Aegis cruiser. in craftwith engines of improved efficiencies. industnel markets, large o rders we re received G E comm ercial engines f or this mark et in-f rom Mexn.c ana lndia ferthe LM2500 engine. ciude the C F6-80, which w as se!ected by several airlines to cower their Eceing 767 and Ae ros pace o pe ration s increased their sa!es Airbusirdustrie A310 jetliners.Overall 75 andeamingsin1980.Tecnnologiescf this custo mers have now selected the C F6 or business, which p rinc:cally involves U.S. gov-j C F M 56 ! fo r th eir hig h-byp ass-engin e-ernment contracts, span the so ace sciences, powered aircraft. electronics and microelectrcnics, avionses. Seven airiines and the Frencn Air Force computer software and control systems. have plac ec orders to re-engine their DC-8 in1980 GEinstalteditsfirstsciid-state. aircraft with CF M56 engines jointly develcped three-dimensional radar system in Belgium as bythe Companyand SNECMA,the Frenen partof NATO's air cefense network, and con-engine manufacturer. A smaller fan version of tinued werk on units forthe U.S. Air Force, U.S. this engine. the C FM56-3. has been off ered to Marine Corps and the United Kingdom. pcwer new and denvative twin-eng:ne aircraft. In soace techno;ogy, G E is the enm e con-In 1980. significant milestones in sm all com-tracter for deve!ccing landsat D, a N AS A mercial engines aiso were reached.The CT7 earth-rescurces satellite, and D SC S ill. an ad-turoc prop ergine was ene sen to cower its first vanced def ense communications satellite. commuter-sizedaircraft,theSAAS Fairenild In avion:cs. inc:uding aircraft instruments The Gecera Eecme irwester 15

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W... i> .p j#. /y 4.,,3 -" 4 s ~e' e ,I [- I 4 3 ) .s 7 8 '[ y; 3 I y s I [ g s q.~,,, k.., ~ E ~TD 4 . g .), ) Ne* C Fs4c A tartof an erg're and CCntrois. dig!!al systems are being tested succlierCf *Claidata prCCessing services .rcer deveiccc ert:y tre Ccen-for the Sceing 767 and 757 aircraft and tre thrcugn new moves in to the scftware and serv-r r$ Navy F A-18jetfighter. ices segmentcf theindustry. Cent:nuedin-Fr sic 3 OC Ocurcs ece rrs7 arc A cusircus r.e ternai ceve!ccments were ccmolemented by C cars: cms Information an d Commu nicationS systems external accuisit!Cns Wh!Cn provide entry intO cperation s continued their strong :ncrease in new areas cf systems design. advanced soft-sales and earnmgs durmg the year ware and serv!ces. General E!ectric informatien Services Tn e G E mc oi!e co m m unication ;; rcd uct s Company (G EISCO) increased its tusiness tus. ness producec stre ng gains in toth sa.es acclicationsin antic:catton of cngoing and earnings. Demand for this ecuipment con-cnanges in the ccmouter:ndustry anc in cus-tinued in both domestic and foreign mar <ets. temer needs. lt t roadened its mar <et ty e x-panding mto manuf actunng rescurce clarnmg Engineered materials increased saies in i anc byintroduc:ng an etectronic curchase cr-1980 Aithcughearningsweredowndueto cenrg system :m<mg ma;cr retailers with iarge f ntlation-dnven Cost increases and !cw er vci-succriers. ume rn dec ressec consume r-related mar <ets. G EISCO st*engthenec its ccs;ticn as a these cusinesses centnbuted a major snare to s l 16 Arm.ai Recc '990 'l -n-,.~,,--,.--_n_-.._

Sectorearnings.GeneralE!ectrichigh per-proving costs and maintaining high quality, formance materials encompass engineered Emphads on increased productivity in plastics, silicone chemicals, tungsten-carbide metal-working industries continued to bnng opportunities forthe Company's line of tung-metals, Man-Made? diamonds.Borazon' abrasives and electro-materials such as sten-carbide m etals and Man-Made industrial f aminates and rechargeable battenes. diamonds fo r m etal-cutting tools. Record oil-TheCompanycontinuedto beaworld dnlling activity stimulated strong demand for l leaderin su ppiying htgh-technology engi-Stratapax' diamond dnllblanks. ( neered plastics. While slow auto sale s af-f ected plastics volume, this was partially off set Medical system s businesses, supplying di-by strong intemational demand and higher agnostic imaging and patient monitonng penetretion of new markets. equipment and services, had higher sales and Among significant f acility additions was a earnings in 1980. International operations are new phenol plant at Mt. Vernon, Ind., that be-ex pected to be aided by the acquisition of sig-gan operation in f ate 1980. Production of nificantportionsof theThorn-EMIMedical phenol, a key raw material required for several sales and service operations outside the U.S. G E plastics, will help assure supply w hile im-This acquisition reinforces the Company's abilitytomarketandsupportitshigh technol-GE's new L U-Angio ciagncstic ogy medical p rod ucts in inte matio nal m ark ets.

x. ray system netos coctors exam-Orders for General Electric's computec to-hYacan7b mography (CTeT?) scanners increased mark-na g cegree of easeandaccuracy. Anothar edly during the year, with significant contnbu-versiont e!psdiagnosecoronary tionsfrom manymajorworldmarkets.

'"Y'' In ultrasound diagnostics, the Datason BT scanner received an enthusiastic reception. A G E Microelectronics Centerwas author-ized in 1980 and is being constructed at Re-searchTriangle Park,N.C.The555 millionfa-cility will develop and produce advanced microelectronic components for G E products. A new pheno, plant at Mt.Vernon. and is designed to strengthen the Company's Inc.. *dt be!c orcvicaccth GE's capabilities in custom integrated Circuits. sucaly of vitadeecstocxs and i t"*'y customer ceiivery of many The out!ook forthe variety of markets served G E sastes. t by Technical Systems and Materials Sectoris f avorabie over the !ong term. While sales of -,r.-. ...._,- m - n,-..-..,- - r x .c, 4 Q );d engineered materials were aff ected by the g J,g ~ y short termdeclineinU.S.marketsdunngthe ...M g, g W b i, ' f f k ; c a 9 ?:h,- year, some smprovementis expected in 1981. f. ,JO O. .e. '[k:'M' While the airline industry is undergoing fi-U J Q.4 i j Cf ;, w nanc:al difficulties, prospects for new engin e chwo-sales remain good because of the need for l improvingfueleconomy. f Government markets for def ense-related =C technology, services, and research and devel-l e 4 {'3 r epmentshouldcontinuetoexpand. 7 1b,, Information services and communication w-1 equipmert markets are expected to maintain theirsteadygrowth eurves, Emphasis on imp roved medical diagnostic d ' i.. L-procedures should sustain demand for high-technology medicalsystems. The General E'ecmc ?nvestor 17

N tural Record results from cn:rgy and min;ral operations R: sources P00R ORIGINAL. ,,., c (in milhons) 1960 1979 1978 1977 1976 Revenues $1.374 $1.260 51.032 $965 31.003 Net eamings 224 2c8 180 196 181 h ?; General Electric's naturai resources opera-quarter when employees protested a govern- 'i tions, chiefly Utah Internationallnc.,in 1980 ment-proposed tax on subsidized housing. s I set records for both revenues and earnings. Utah seeks expansion of its coking coal ac-Earnings were up 8% on 9% higher revenues. tivities and is investigating the f easibility of These operations orovided 5% of total G E developing other mine sites near present op-revenues and 15% of earnings for 1980. erations. Utah-operated coking coal mines Earnings improvem ents were paced by oil now have a total annual productien cacacity, Atxander M.WHson andnaturalgas,ironcre, Copper domestic includingpartners' shares.cf about23million fnICEe E ecu veOftcer-coal and ocean shipping operations-more metnctons. Utanintemationailnc. than off setting lower earnings fo r coking coal and uranium. Olland naturalgas operations of Ladd Petro-Continued g rowth is expected in the 1980s leum, Utah'soilandgasaffiliate produced due to Utah's established position as a leading record revenues and eamings forthe year. Iow-cost producerof energy and mineral re-Higher p rices for petroletaT1 products was the source s, and because of vigorous ongoing primary reason for improved results. Ladd's exploration and development programs, activitie s are located in 16 states and three Atyear end1980,thesalesbacklogformin-Canadian provinces, and Ladd is a participant erals, including uranium, was $6.8 billion, of in four fo reign expioration joint ventures. Drill-which $5.7 billion wa s scheduled for shipment ing and acquisition programs d uring 1980 ex-after 1981. All contracts making up this back-panded its property cod teserve positions. log are payablein U.S. dollars. Approximately 80% of 1980 natural re-Iron ore activities made a small contnbution to sources revenues and 73% of net earnings eamings in 1980. The largest operation is the originated f rom operation s outside th e U.S. Brazil-based Samarco,in which Utah owns For additionalinformation about certain of 49% of the voting stock and provides debt Utah's natural resources. see page 31. guarantees. lt operated at a break-even level in 1980comparedwithalossin 1979. Au stralian co king coal activities, although re-alizing somewhat tower earning s in 1980, con-Domestic coal mining operations aiso con-tinued to be Utah's major eamings source. tnbuted to the 1980 earnings gain, principally Utah owns 89% of Blackwater Mine and 68% of due to increased steam coal shipments f rom fou r other Utah-ope rated epen-cut co king coal the Navajo and S an Juan Mines located in the mines, including Norwich Park Mine which had FourCornersareaof New Mexico. its first f ull year of production in 1980. In addi-In 1980, Utah acquired the coalle ases at tion, the company owns 68% of the compara-S an Juan,where previously it had operated tively small unde rground H arrow Creek Mine. under a mining contract, and it completed its A two-year labor agreement reached in July purchase from National Steel Corporation of

• 980 between manag em ent and the mining coal reserves in Kentucky and West Virginia.

u nions reflects an imp roved industrial climate atUtah'soperations.Preduction though,was Copper mining oparations at Island Copper interrupted fo r 10 wee ks during the third Mine in Batish Colu mbia, Canada. reported rec-18 Annual Aecort'980

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erm an: e::se<ec+ : a ;e eany ntreyear andhigrer::ncesfcrcreof tre sin: es:s,

cu-tee s a:<- es ec ace s s e:sr ::.r; mine 3 cy.::reducts.gc'd. in other activities. cce an tran sec rtatic r 0 c e r-re rs. a:crve e :e o rme aticos.carnec outm succertef utan s crocuct uc w.crerca sester -eias 3-: ree.g ecators Uranium mining ccerations are cercucted m mar <etmg.realirecir croved resu ts m ? 980. .acc ce eu sster: quoe<- Wycmirg byCattencer Mines Corcorat'on. a Lano ceve<coment activ: ties were 'ess c r0fita-

:ratur are ceve.c e-ent et wn cdy ownec ncrC:nscfidated suc siciary. all cie than the orevious year.

- s A:9rar s:':rtEu sa. cf wrCse CcmmCn sicCKis he!d byincecen. a* : r:rc ere= e sa e cacec 3:cr a*;e: a car e s dent!"ustees t see rcte 12 te t;nanc al state-The outlook for Utan inter :ationafs cusi-mer'ts' Patnt:rder sincreased esscur:rg nessesisenhanceacyex::ected'cng term t 980'e"ected srarely mgnerocerat rg costs growth in wort d cemand fer its products. Rec-cor-cired w:th tre cw Onces received as f:ra6 Ogni:mg this cccertLnity. Ltams mient ucen Q ceaver esweremaceuncercentracts s gred e x c a ncin g :ts cu rrent c c e rat:e n s. S u :: sta ntiai V in me eany ' 970s. 'n 198 *. Pathfirder s ex-ncreases m i 980 e xc.c ration anc deveicc-

ectec to ceg'r ma<:rg ceuvenes cn n:grer-ment excencitures 'e4ecimaragement s ceti-Oncec sa escentracts Lcrger-te'mcrcscects mism atout future market o'escects.

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Intemational U.S. export sales show strong rise; international business increase's Foreign rnu;ti-,ncustry ocerations nn rm! bono 1980 1979 t978 1977 1976 Revent.es $3.234 $2.901 $2.767 $2.562 s2.334 i 2-Not earnerigs 68 65 76 71 75 L. f fQ Total irternational ocerations - all Sectors

• 9 Revenues outsica the u S.

$9.597 s7.340 s7.014 $6.138 $5.5_67 g 7 a-Net earnings 639 526 486 415 445 ' '? ' General Electnc's total international busi-cult economic conditions in many of the > A, ness from its six Sectors in 1980, which is countries served. These operations are the summarized above, reported a 21% eamings direct responsibility of the Intemational Sec- ~ Accert R. Frecenck Executive Vice President ano tional operations accounted for 38% of GE ing vaned !ines of products for local and ex-Sector Executive-international revenues and 42% of earnings. port markets. They also include international S*Ct0' Domand for a wide range of scphisticated construction operations. products and services needed by the world's Canadian General Electric Company Ltd., economies is expected to continue to make largest of the multi-industry affiliates, re-intemational business a major contnbutor to ported 1980 earnings significantly higher General Electnc eamings, than those of 1979 on rnodestly higher sales. The Company's intemational business is Improvements in electrical aoparatus and composed of four broad categories of activi-construction products were partially offset ties: foreign multi-industry cperations: U.S. by dectines in consumer operations. exports of General E!ectnc products and ser-Latin American affiliate earnings were vices; operations of nondiversified foreign af-ahead of 1979. pnmanly because cf streng filiates including the foreign operations of consumer and industrial markets in Mexico Utah intemational; and technology licensing and Venezuela. revenues. Elsewhere, coerating profit of restructured A summary of internat:cnal revenues ap-Italian operations improved. The Spanish af-pears below. Revenues from U.S. exports, filiate continued in a ! css position, largely as operations of nondiversified foreign affiliates a result of depressed local economic condi-and technology licensing also are included in tions. Operations in Afnca. the Middle East the amounts reported by the accropnate and Far East generally imoroved and contin-product Sectors elsewhere in this Report. ued to provide significant assistance in "pui!- ing through" more orders for U.S. experts. International revenues International construction operations nad increased sales in 1980 with earnings a aut iln milhons) 1980 1979 Foreign ocerations and tscensing s5816 $5 068 Export sales to external customers by Gen-t na are storners $3.781 $2.772 eral E!ectnc s domestic business operations. Af%ated corrcanies 484 467 assisted by marketing and financial services $4 265 $3 239 provided by the International Sector, were up $1.0 billion in 1980,36% more than in the Foreign multi industry operations had previous year. This sharp increase was led i l generally good results in 1980 despite ciffi-by high-technology p*cducts including 20 Arnual Aeocrt t 990

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Q4 O [i ds -d6 4 WR. ~ - ?.c g R p,4. :.- i d k [ Q[$ a k9 C. 7'. jpQij g.gq. ) 'YhiL / if / -7 'f h wiry $yV?$ g.3 a ~ 24 + EN h L s !Msd$i. '%ML._ ~ C:ccwse fram ucce<'et Brans aircraft engines and gas turbines. major foreign industrial countnes and of a t a o u cIr c As one of the nation's leading exDorters. some of the newly industnalizing nations are eteron tre igua;u Rn,er..nc'uces tur. General E!ectnc had total exports of 54.3 bil-expected to strengthen in the fatter half of the l l cices ce s.grec arc tuut ty Cara-lion in 1980. wnich exceeded its direct im-year. This should provide an advantageous !'eIy vsrgn$;aN$er WDD**"D

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""#5 "#"* D Und j croaucts are manuf acturec using helping offset the unf avorable U.S. trade operations in those countnes. and is ex-cacer aungenves.metersarc balance. pected to stimulate demand for GE's experts !arry =$o se e : atfo'n"9 The backlog of Company orders from unaf-from the U.S. ) ut c4ar.GE recerth soid sin gastu,. filiated customers for exports from the U.S. GE cperations expect to continue their eires to tre nationaiutsty..nc:,c-again increased from $4.6 billion in 1979 to growth by expanding from their strong bases clts r$. c*a b'arez'8 9" $5.1 billion for 1980. into countries with high levels of GNP growth - pnrcipally the oil-rich nations and several l The outlook. Prospects for continued industnalizing countries. In addition, Interna-growth of General E'ectnc's international tional Sector has made notable progress in business in 1981 are partly attnbutable to the strengthening its affiliates, by selectively al-l Company's wide geographic diversity. After !ccating resources to emerging marnets scme slowdown in early 1981, economies of which offer maximum potential. l The Generai E'ec:nc trvester 21

Coard of Directors P00R DRIGINAL General Electric's Board of Directors con-centrating on specific areas of interest: ducted 11 meetings in 1980.The October The AuditCommittee,made upentirelyof meeting took place in Houston, Texas, where Directors from outside the Company, met four Board members also attended the 1980 share times.Itsreviewsincludedthoseof activitiesof owners'informationMeeting. both the independent Public Accountants and Specific Board attention was directed to pro-theCorporateAuditStaff Atajointmeeting posed orograms relating to the Company's with the Finance and Operations Committees, strategies for strengthening its electronics ca-the 1979 Annual Report and the 1980 Proxy pability-an increasingly im po rtant f acto r in Statementwere approved. today's ecmpetitive business environment. The FinanceCommittee,meetingfour in May, the quarterly dividend was increased times, reviewed the Company's financial posi-by the Board, from 70 to 75 cents per share. tion,itsinvestments,andtheoperationsof the The seven Committees of the Board, listed General Electric Credit Corporation. at lower right. are designed to help the full The Management Developmentand Com-Board keep pace with the growing scope and pensation Committee he!d ten meetings and complexity of its responsibilities by con-reviewed and approved changes in G E's Jonn E. Lawrence Walter B.Wnston Ralpnlazarus Gelbert H. senener.Jr. Edmund W. L>ttlefield J. P aul Austin Aegmald H. Jones James G. Bosweilll Charles D. Dickey,Jr. Henry L. Hellman John E. Lawrence. President. EdmundW.Littlefleid. Chair-JamesG.Boswellit Chairman HenryH.Henley,Jr Chairman Gertrude G.Michelson, senior James Lawronce & Co.,Inc., manof theExocutiveCommittee of theBoard. Chief Executive of theBoard.Ch.ef Executive vice Pres. dent, Extemal Aff airs, cotton merenants. Boston, and Director.Utahinternationat officerandDirector.J G.Bos-of'icer ano Director.Cluett, R. H. Macy & Co.. Inc.. retailers. Mass.0 957) Inc.. san Francisco. Calif. wellCompany. farming and re-Peabody & Co. inc..manuf ac-NewYork N.Y.0976) 096a) f atedbusgsseslos Angems. tunnq aM retadingof apparet Lewis T.Preston.Chairmanot Weiter B.Wrtston. Chairman of Cahf 097 0 New York. N.Y.0 972) theSoard and Director.C.ticoro J. Paul Austin, Chairman 0f the gg gg y p, andC.ttbark N A..New York. Board and Director.The Coca-Chartee D. Dickey.Jr.. Chair-Silas S.Cathcart.Chairmanot Morgan &Co incorporatedand N Y.O962) Cola Company. At!anta. Ga. manof the Soard. Chief Execu-the Board and Director. lilinois Morgan Guaranty TrustCom-pany.New orn.N.Y 0 976) 096a) tiveofficerand Director. scott Toolworksinc.$ versified v Company.Philaceionia. Drooucts. Chicago.lli 0972) $r rF er-Regmald H.Jonee. Chairman ','g g g p, Boa en ated Cecartment stores. inc., of tne Board. Chief Executrve SamuelR.Plerce.Jr Partner. Aensseraer Polytecnnicir'sta Cennati.chiot1962) Of5cerandDirector General Henry L Hillman.Presscent Batt:e. Fowler Jaffin P erceard tute. Trcy, N.Y (1977) $ctnc omcanyfair d. and Director. The Millman Com-KheeUaw firm. New York, N.Y' Gilbert H. Scribner.Jr..Cha.r-RWM Buhme "' # U $',"[,,f,'n',s Dnst & Wrey.cWicac-manof the Beard ano Director.

s. P ur P scnener & Co.resiestateand countants.C:evetand.Chio.

0972'. insuranec.Cnicago. iti 0 962) 0 977) 22 AnnualReport1980

e ~ P00R ORIGINg executive compensation and management. statusof theevolvingnationalenergypolicy. The NominatingCommittee metthree The Technology and Science Committee times. It assessed candidates f or Director-met twice. concentrating on those areas of ships andthe memberships of other Board technological development promising the Committees. most significant progress for the Company. The Operations Committee met five times. The Board is made up primarily of Directors At one session, a joint meeting with the Tech-from outside G E.The 1980 Board members nology and Science Committee at the Com-arelistedatlowerleftinorderof theirBoard pany's Plastics Business Ope rations f acility in senionty, with the year in which they were Mt.Vernon, Ind.,it conducted a business re-elected shown in parentheses. Besides Mr. view of the Engineered Materials Group,in-Jones, three other directors are not candi-cluding perspectives on the G roup's antici-dates for re-election. Messrs. Lawrence and pated financial performance through 1985. Austin are retiring f rom the Board after 23 and Th e Public R esponsibilities Committee 16 years of service, respectively. M r. Pierce held two meetings and reviewed key public has resigned to become U.S. Secretary of issues aff ecting the Company and the current Housingand Urban Development. ,1 Her+y H M4niey.Jr. salas s. Cathcart 3amuel A Pierce.Jr. GertruceG M cheison LewisT Preston George M. Low RicnardT Baner JonnF Bur'ingame Ecward E. Hood.Jr. JonnF We6cn.Jr. Finance Committee Nommating Committee Public Responsibilitlee JohnF.Burlingame,Vice COmmitte9S EdmundW trttletioid.Cher-Charioso Dickey.Jr.. Chair. Committee CharmanottreBoard.E; rec,3 Ofth6BO8fd man. AeginaldH. Jones. Wee man.J Paus Austin.HenryH. H 'riry H. Henley,Jr.. Charman. tiveofficer and Director. Chainnan.Chaneso Dickey, Heniey.Jr.. AaionLazarus. Jonn F. Buningame. Wee Cher. GeneraiE octncCompany. Audit Committee Jr..HenryH Heruey.Jr..GJbert EdmundW Lttlefiend George man. Ricnard T Bauer.HenryL. Fairfield. Conn 11980) RicnardT.Saker. Chairman Edward E. Hood.Jr.,Vice Jonn E. Lawrence. George M. ^' EG c ison' n n Chaircranotthe Board. Execu. Low. samuel A P erce.Jr. operatione Committee samw A.P'erce.Jr' en,e ctficer and Director. LewisT.P eston Management C evelopment Henry L Hillman,Charman. Genera 1EtectrucCompany, andCompensation Jonn F Weten.Jr..Wce Char-Technology and science Committee man. James 1 Boseoilfl.sdas Committee Fairheid.Conna t 980; Ra'on Lazarus. Charman, J. s Cathcart.GertrudeG.Micnoi. GeorgeM. Low Chairman. JohnF. Welch.Jr Chairman

• Paul Austin.silas s Cathcart, soa.Seuet R P erce.Jr.

Ecward E. Hood.Jr. Wee Char-eiectand0irector General Jonn Elawrence. Waf ter B Lewis T D eston.GilbertH. man.JamesG Bcswealti. Coctnc Many. Ferteid, w,iston scnener Jr. Chaneso Cickey.Jr..HenryL Conn (1980) Hillman.Eamund W Lttleheid The General E!ectnc investor 23

CE people pggR DMBln l Com pany dome stic employment,inc!uding increase of 10% was applied to the pensions of consolidated affiliates, averaged 2E 5,000 dur-those who retired on or before May 1,1979, ing 1980,aboutthe same as 1979. and sma!!er increases we re applicable to em-An analysis of domestic G E and General ployees who retired after May 1,1979, and E!ectric Credit Corperation employment for before the February 1,1981, effective date. the year ended September 30 demonstrates This marks the third pensioriincrease for G E l the Company's active support of U.S. progress retired employees in the last fcur years. toward improved career oppo rtunities for Medical care for th e Company's retirees was women and minonties.The number of wome n alsoenhancedwiththeintroductionof anew managers increased from 1.288 to ',,478 - up prescription drug plan and improved medical 15% The numcer of mincrity managers in-insuranceprovisions. creased 8% from 1.332 to 1,432.The total of women professionals went up from 4.690 to G E*s occupa tio nal saf ety a n d health record 5,349, an increase of 14% wnile the numDer of and expe rience compare f avo rably with those minonty prof essionals climbed '. rom 3,348 to fo r companies in similar businesses. :n 1980, 3,663-up 9% More than 19,000 women and General E!ectric continu ed to empnasize 9.000 mineties were promotod in 1980. Over-pecole-oriented safety programs anc health-alI, women account for 28% ot General E!ectric hazard education. employees,and minorities 12% Contributions to philanthropic organizations Wages and benefits for GE employees con-by the Company and the General Electric tinue to provide a competitive total compensa-Foundation totaled $ 13 millicn. The G E Foun-tion package. !n 1980, the new Dental Assist-dation's annual report will be available in A pril ance Pf an was introduced as an additional ben-upon request. included in the Foundatier,'s efit for employees and t'v. sir dependents. contnbutions were $1,050,000 formi sonty en-t Adjustments in the ransons of retired em-gineering programs, a major part of an effortto playees were approvr,d by the Board of Direc-improve careereducation. tors. Effective Noruary 1,1981, a maximum A Com panywide surveyidentified 80 pro-grams in 48 G E pf ant communities w n ere G E \\ busines s oc erations are contnbuting to local ,s .( minenty engineering activities and scholar-ships. These efforts helped lead to steady s QA progress in the national effort. which in 1980 ^ ,_ v g resulted in S.S. degrees in engineering fo r 2.383 minenty students - a 90*. increase smce the program beganin 1973.

f. Stren gthening the technical work fo rce of G eneral E!ectric is a key ongoing objective.

Efforts to recruit. retain and retrain the prof es-sional and m anagerial peopf e needed for the ( changing G E of the 1980s are aggressively Atalanttocatens such asthe GE underway. Du ring the year, the Company's con cutercenterin B,cgecen. -,s new two-year Edison Engineenng Program-designed to provide entry-level training opcor-tuce s e rt e o careers.n sc:ence anc ergireering. tunities for engme ers-saw its first graduates. 24 Annual Peocrt 1980

4 Mcnig0m:nt P00R OR GINAI) i 1 l Corporate Poucy Soard Corporate staff Officers j Regmid H. Jones hs R Casey, K0. ,R Howans Annin Jr. ( i Mark:n9 a caref ully planned succession Chaman Of re Scarc VP & Cce:ary /P - Ncr ceastem cf executiva leadership.the Board ef Directors aro Cne+Esec.tr.e vec.cai c rec:ce Pegcra; meaws I C# in C ecemcer named Jenn F. Weien. Jr.. as James J. costeno Knstian H. canstansen l Jonn F. Weten. Jr. VP & Cor-et <ec VP - scutaeas:em l Chairman, eff ectiv e Aonl 1.1981. He will n <a:ces Crastn an-sect nepcras e l phygg;,,ct,, ,;ig,,g,p,,,,, j succeed Reginald H. Jcces as Chairman and 3,3,,,g,,,,,,,, Chief Executive Officer en that date, anen Mr. wee Crar-an er re issuesp o..ct vP - scu %es:em i %cra; Ae aws Jcnes retjres atter 41 years of outstandir gty gae ard Eseca<e Frank P Doyle c, l Jchn F Burtingameana Edward E. Hood. vce Crar-an of re eators eff ective service with G e ne ral E!ectnc. Cg*W" 73y,ym%ce,; t go,,,, g, go,,, 3,, Daw F. Frey ecare am Enecave Jr., ce nt:nue as Vice Ch as men cf the Sc ard yp g 77,,,,,,, wmtam C. Leetw C [,g peya l and Executn e Officers rescrting to the y,gy,en, Fred W. Garg s {fy.%a e C h airman-e' ect. w:th re aligned anc incre ased ser c< viceares<:e-t n,y. p,ty, n i rescons;bilities. Reporting to Mr. S urangame Ccrocram Tec coogy vo -Cer:rai Percral l wanon.xenogg U*"*' J *" "eaws l are tre intemational Sector. Pcw e r S ystems v a - Ce<=craa l Sector. Utah tntemational lnc.. Cc rocrate r$r.79) rya *rc Corsu teg semces gd o scar f l wenc:raet Raymond F. Letts

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l P!anningandDeve!ccr entStaff and Ccrperate Relations Staff. Reperting to Mr. gg,Kub,,, b:Ir2Ns'e* Cp-Ccgaa

s. semow ces g

HoedaretheConsumer Dreducts and Ccr: crate P ocuctcc Theodore P. LeVino ".s v e w a w s Services Seeter. industrial Products and anc C:er:teg semces vp - Executrve Comcenents Sector. Technical S yste m s and @,Cy,,w,, {,g*g{ y, Matenals Sector. Corecrate Production cnd Cor o are Pe,aws vp - Trust : cast-erts C:can l Ocerating Service s, ar,'J Corocrate waiter A.seniottert>ack S*"'cr %ce P escot Twece E. ucCtan Tecnnele9Y Staff-Gere alCcurse'aN vP - Cc<:ceste F rarcal I Theseexecutivesheadtheteamcf 141 see etary Acenst aten I managers on :his and the f ellowing ac c ages. Thomas o.Thorsen Jonn s.uckittenex Cor:c<aa integration of the programs of these senicr j',"g,wce P n ce-t j managersisaidedbytwomanagement ecws $$ss groucs:the Corpcrate Pelicy Beard made up e cc,,-,, nt mawsCreaw I e of the Chairman.Cha:rman-elect.Vice I Roland W.scemitt Chairmen and the six Senior Vice Presidents $4Ie[,$*)',","**'" pictured at ngnt: and the Ccrporate Ex ecutiv e a I Ccuncil whicn inct ud e s th es e sam e ten 4 W officers plus the six Executive Vice Presidents i J and Sector Executives cictured ear'ier in th:s y/ Annual R ecort witn their Sector reviews. e sc v. w m m w. The 12 cther Semor Vice Presidents, pictu red en pag es 26 and 27 along with the Presicentef GECC. provide managementfor i groucs of GeneralEfectr:ccus nesses. i The continued availability of broad!y l ex cen enced leade rsnip for Gene ral E!ectnc in the future is c eing achieved througn a civerse pecgramcf!eaming ccccrtun;t:es pre ncedcy So' *8 C 'c S+a

• -w **

the Cemeanywerfdwide. l l l l Be Ge-e a. s ec rc. ves.cr 2s

Management-operation 2 James A. Baker Robert R. Frederick Herman R. Hill Executive Vice President Execuuve Vice President Execuuve Vice President and Sector Execuuve and Sector Executive ano Sector Execuuve industrial Products and Co nponents Sector International Sector Power Systems Sector James P.Curley Ralph B. Glotzbach Willis E. Forsyth Roy H. Beaton John A.Urquhart Stnior VP & Group VP -Industnal Products VP & General Manager Senior VP & Group Senior VP & Group Executive-Contractor and Components laun Amencan Operations Executive-Nuclear Execuuve-Power Energy Group Deiivery Group Eauipment Group Customer and Industry Rodger E. Farrell Relatens Operaton Wlillam Longstreet General Manager A. Philip Bray Nicholas Boraski VP & Genera Manager Kertle P. Kuhlman Andean Ccuntnes VP & General Manager VP & General Manager Distnbution Eauipment VP & General Manager Division Nuclear Power Systems large Transformer Divisen Division Division General Electnc Supply J. Richard Stonestfor Company Dwson Chairman of the Board and Warren H. Bruggeman Donald C. Berkey James M. Mcdonald VP & General Manager Donald E. Perry Chief Executive Officer VP & General Manager VP & General Manager Apparatus Distnbution VP & General Manager General Electnc do Brasil Nuclear Products Energy Systems and Sales Division industnal Sales Division S.A., Latin Amencan Division Technology Division j Donald K.Grierson Bruce O. Roberts Operanons Hen E. Stone Robert T. Bruce S4nior VP & Group VP & General Manager Paolo Fresco VP & General Manager VP & General Manager Executive -Industnal Apparatus Serwce VP & General Manager Nuc! ear Engineenng Instailation and Electronics Group Division Euro;)e and Afnca Operations Dewsion Service Engineenng Dwson Erwin M. Koerttz CarlJ. Schlemmer Edward C. Savarta Bertram Wolfe VP & General Manager VP 1 General Manager VP & General Manager VP & General Manager Edward W. Springer Electronic Components Transportation Systems Middle East /Afnca Nuclear Fuel and VP & General Manager Division Divisen Business Development Services Diwsion Electnc Uukty Sales Division Division James R. Olin George B.Cox VP & General Manager George J. Stathakis Senior VP & Group industnal E!ectronics VP & General Manager Executive-Turcine Group Systems Division Intematonal Trading Robert H. Goldsmith and Cons:ruction Operations Van W. Williams VP & General Manager Senior VP & Groui: Arthur V. Puccini Gas Tureine Division Exscutive-Motor VP & General Manager Richard W. Kinnard Group Export Sales and VP & General Manager George B. Farnsworth Trading Dwson large Steam Tureine-VP & General Manager Edward F. Roache Generator Division Component Motor VP & Gereral Manager h ' Division Intemational g'9' y Ge al n ger Construction Division Eugene J. Kovarik ammmen,, Industnal and Manne VP & General Manager Vittorio Orsi Steam Tureine Diwston Industnal Motor Managing Director Divison ""umas, SADE SADELMI Construction Operations Intemational Construction ,8_, g y Q Division Frank D. Kittredge e VP & General Manager 5 Far East Area Divisen Alton S. Cartwright Chairman of the Board & Q Chief Executive Of5cer y Canadian General Electnc Q Company Limited (CGE) g (a General E!ectnc amate) James P Cur'ey William R. C. Blundell President and Chief Executive Officer. Canadian Roy R Beaton Aaptiance Manufactunng yg Company Ltd. (a CGE affiliate) Robert T. E. Gillespie Vice President ? G-Consumer and Construction f' Products Division. CGE Donaid K. Gnerson D. Forrest Rankine Vice President George B. Cox en A wan 3. ach nery vis on. GE

• \\

Q r b _p If van W. miiams 26 Annual Aeoort 1980

1 Chrictopher T. Kastner PaulW. Van Orden Atxander M. Wilson Executwe Vice President Execuuve Vice President Chairman of the Board and and Sector Execuuve and Sector Execunve Chief ExecutweOfficer Technical Systems and Materlats Sector Consumer Products and Services Sector Utah InternationalInc. Donild S. Bates Brian H. Rowe Richard O. Donegan James R. Birte James T. Curry Senior VP & Group Senior VP & Group Senior VP & Group VP & General Manager Financial VP Exscutive - Information Executive-Aircraft Executive - Major Air Conditiening Division Stephen K. Brimhall and Communications Engine Group App anceGroup Fred R.Wellner VP & Treasurer Systems Group James N. Krebs Robert E. Fowler, Jr. General Manager Melvin H. Kennedy Gr cry J. Liemandt VP & General Manacer VP & General Manager Television D rision VP General Manager Military Engine Operations Major Apoliance William R* Webber Ronald K.Lamson Information ::iervices Orville R. Bonner Manufactunng Dwision President Contro* Dvision VP & General Manager Richard T.Grafton General E!ectnc Video. Inc. Ralph J. Long Donald J. Meyers Manne and Industnal VP & General Manager Walter W. Williams Senior VP & Manager VP & General Manager Engine Projects Division Maior Appliance VP & General Manager neral Exploradon and Marketing Operations Housewares and Audio Mobile Communications William J.Crawford ill Deveiopment Division Dwision VP & General Manager Philip J.Drieci Division Charles R. Carson Military Engine VP & General Donn K. Furgerson John W.Stan9er VP & Manager Senior VP & Group Projects Dwision Manager-Major Piesident & Manne Transpomtion Apoliance Retail CNef Execunve Officer Executwe - Engineered W. Georbe Krall Sales Division Matenals Group General anager General E:ectnc Credit Robert O.Wheaton Abstair C. Gowan Aircraft Engine William L Grim Corporanon (GECC) VP & Manager-Business VP - Engineered Matenals Manufactunng Divtsion VP & General Manager f an affiliata of General Devetopment i Maior Acoliance Electnc) Charles K.McArthur Tecnnicai Operanon Frank E. Pickering Contract Sales Lawrence A.Bossidy Senior VP & Manager Glen H. Hiner VP & General Manager Division VP & General Manager Aircraft Engine Executive VP & Chief Mining Dwision Plastics Operanons Engineenng Division James F. West Operatino Officer John T. Atkins VP & General Manager General E!ectnc Credit VP & Manager-Western Eugene F. Apple James E.Worsham Maior Apoliar:e Corporanon Coal Operatons General Manage-VP & General Manager Markenng Division Norman P. Blake Speciatty P'astics Division Commercial Engine Robert N. Hickman Operatons John C.Truscott VP & General VP & Manager-Mining D. Rex Blanchard VP & Generai Manager Manager-GECC Technical Services Director Neil Burgess Managink!ectnc P'astics (arApo eneral a Ma g 1 P & Ggn e p search and nd s n F n ncing Boyd C. Paulson Engineenng Division Dwision Vice President Ralph D. Ketchum Bernard P. Long George W.Tarleton P eral Mana9er Ge'nera na9er Senior VP & Group VP & General VP & Manager-Mineral Lexan Procucts Dwision Commere:al Engine Execuuve -Lignting Manager-GECC Products Markeung Projects Division Group Consumer Financing John H~ Moore Thomas H. Fitzgerald VP & General Manager Louis V.Tomasetti Dwision Paul L Dawson President-Ladd Silicone Products Dwision Senior VP & Group Executwe VP & General Manager Petroleum Corporation Aerome Group Robert J. Gerardi Lamp Components (a sucsidiary of Utah) Gere Manager Wlulam A. Anders Dwision Keith G Wallace Metasiurgical Dwision VP & Gere ral Managwision er David O. Gifford Senior P & Manager Aircraft E,uipment VP & General Manager Australasia Division D ~ Lee L Farnham Intemational Lighting Umothy R. Enterer VP - DSCS Program Divisicn 9 5 VP & General Manager o ~ Thomas 1. Paganeill Henry J. Singer Utah Deveicoment VP & General Manager VP & Generai Manager Comoany (a suosidiary E!ectronic Systems Dwision Lamp Procucts of Utah) Qvision Allan J. Rosenberg Bruce T. Mitchell VP & General Manager Secretary Space Systems Division J. GIIbert Selway Ladistaus W.Warzecha General Counsei gon,,o g g. VP & General Manager Re-entry Systems Dwision v 5 Donald S. Beilman s VP & General Manager Cperations b Advanceo Microeiectronics James E. Dykes / Genersi Manager g f g Microeiectronics Center k 3 yjohRojb p,cnaro O. Donegan scen W Stanger Cnanes n Carson Medical Systems Division ~ y, s m snan n me.. Racn o Aetenum l The General E!ectnc investor 27

i Financial review interest expense and otner financiai charges were $314 million in 1980, compared with $258 million in 1979 and $224 million in 1978. The 1980 increase from 1979 reflected higher worldwide interest rates as well as a somewhat greater level of borrowing by affiliates. Interest expense in 1979 was more than in 1978 principally due to higher rates. Provision for income taxes was $958 million in 1980 I This financial review supplements the detailed informa-($953 million and $894 million in 1979 and 1978, respec-tion presented in the audited financial statements which tively). Note 6 to the financial statements provides details I b: gin on page 34. In addition, reference should be made about income tax provisions and GE's effective tax rate. to the ten-year summary of historicalinformation on pages 46 and 47, which provides a longer-term perspective. Dividends declared were $2.95 per share in 1980, the fifth consecutive year in which the rate increased, and 74% Sales and net earnings were up 11% and 7%, respec-more than in 1976. Earnings per share of $6.65 in 1980 tively, in 1980 from 1979. This performance, despite a were 61% more than in 1976. During the years shown p riod of adverse economic conditions in the United below, dividends have been equivalent to just under half of States as well as in a number of the world's industrialized the Company's eamings, with the remainder retained to economies, emphasizes the strength achieved through maintain the Company's productive capacity and support tha diversity and changing mix of General Electric opera-future business growth. tions. Information about industry and geographic seg-m:nts is on pages 44 and 45. Eamings per Share in some of the shorter-cycle businesses, particularly those related to consumer and residential construction ' D'*aaa markets, physical volume was lower in 1980 due to the domestic economic slowdown. In other businesses. par-em ticularly where order-to-shipment cycles are longer, as well 3, as where exports from the U.S. are important,1980 physi-cal volume was higher. Overall, it is estimated that additional volume of chipments accounted for about one-fourth of the im y J increasco sales dollars in 1980. During 1979, higher volume ,.I z. had accounted for somewhat more than one-half of the 14% increase in sales dollars from 1978. 1 ,j j M Lj Operating margin dollars, as shown in the Statement in isn im im som of Eamings on page 34, were higher in 1980 and 1979 than in each of the previous years. Details of operating Capital expenditures reached a record $1.9 billion in costs are shown in note 2 to the financial statements. Op-1980, up 54% from 1979 and more than two-and-a-half crating margin as a percent to sales has declined some-times greater than in 1976. Identification of needs for capi-what since the high in 1978. Despite continued emphasis tal expenditures and selective allocation of funds to prom-on productivity improvements, which tend to have longer-ising growth businesses, as well as to productivity and l term impact, costs of compensation and benefits and pur-technologicalimprovements, are among the most impor-( chased materials, supplies and services have been esca-tant aspects of the Company's strategic planning system. lating more rapidly than the Company has been able to Expenditures for property, plant and equipment for each of recover the increases through selling prices. Also, the the Company's Sectors for the past five years are depicted Company has substantially increased expenditures in re-below. c:nt years to benefit future growth. Research and devel-opment expenditures from the Company's own funds were Capital Expenditures $760 million in 1980. This was 19% more than in 1979, when expenditures were 23% more than in 1978. ma' s General Electric derives income from a variety of op- ' M'l=,n;;tm erating and nonoperating sources in addition to amounts realized from sales of products and services. These other , m,n,,,,,, sources of Company income have been substantiat in re- .nacoman a cent years. including steady increases in earnings from 3 Conse-PWucu our nonconsolidated finance affiliate, General Electric er an m* eau.n Credit Corporation. GECC's eamings rose 28% in 1980 to a po-- s,cm $115 million from the 1979 amount of $90 million, which .m was 17*'. more than 1978 earnings. More detail of other _~ ~ ~ " ,,_,,m-a coroarr. income for 1978-1980 is included in note 4 to the financ:al im im tm im ism statements. l 28 Annual Report 1980 l l

l In dJditien to programs timed Lt improving productiv-pl: tion and amortization. The most substantcl recumng ity, expenditures have been made for increased capacity apo!ications of funds occur in the form of increasing civi-or to provide adequate sources of key raw materials, such dends and expencitures for property, plant and ecuio-as plastics feedstocks in me Technical Systems and Mate-ment. As illustrated in the enart, funds provided from coer-ri ls Sector. Still other excenditures are aimed at com-atens have been mere than ad.; ;uate cunng me five-year pi;tely new resources ror GE. such as the purchase by period shown to cover those commitments. Dunng 1980. Utr.n Intemational of coal properties in the Eastem United dividends and excenditures for new plant exceeded funds St:tes. Several Sec: ors and the corporate Research and generated from cperations by $279 millicn. This cifference Deve!cpment Center are masung substantialinvestments was met with amounts avadable from pncr years. onented to expandmg and improvmg the Company's inte-grated capabilites i1 advanced electronics. Comparison of Cash Flow from Operations with Cash used Estimated procerty, plant and equipment expendi-for Dividends and Property. Plant and Equipment turcs in future periccs to ecmplete projects already ap-5 preved aggregated $1.0 bi' lion as of year end 1980. _ = gy Cash and marketable securities at year-end 1980 to-E =I M 'A m til d $2.2 billion, some $375 mittien less man a year ear-E- E ti:r. Short-term borrowings increased $222 million dunng m-1980 to a total of $1.1 billicn at year end. As a result of E-E I th:se changes. a total of 5597 millien of the Ccmpany's E EE n:t !iquid assets were utlized cunng 1980, pnmanly to B fund current pened and long-term growth programs. Net ll l ll ll l liquid assets stood at $1.1 bdlien at Decemcer 31,1980. ,n .,n ,n .n l The decrease in cash and marketables was concen-me tratad in the U.S. and reflected significantly nigner ex-

• * " " ~ " " " "

penditures for additions to domestic-based property, plant and equicment. The borrowings increase related mainly to The Statement of Changes in Financial Position on foreign affiliate ocerations where GE's general practice is page 36 presents furtner information accut scurces and to utilize local financmg for mest funding needs. applicatens of funds. Werxing cacital, exc!uding net !iquid assets men-tiened above. increased 5376 million and consisted princi-Maintaining a sound capital structure is a key element pilly of higner customer receivables (up $548 million) and in meeting the Company's financial objectrve of achieving inv:ntones (uo S182 mdlion) parta:Iy offset by acditens sustained eamings growth and a good retum en invest-l to accounts payacle for materials and services and simi-ment. GE's financ:a! plannmg involves censiderable atten-lar short-term amcunts owed to others. The Company s tien to antic:patng needs and maintaining a scund ref a-total working cacital was 52.3 bi!! ion at year-end 1980. tionship between snare owners' equity and funcs Dcr-With respect to receivaties, double-digit interest rates, rowed from others, bcth !cng-and short-term. As shcwn in centnumg hign inflation, an uncertain economy, and ught-the chart belcw. the ratio of equity to tetal cacital has been l cnmg in the avadacility of bank crecit created an environ-increased from 73.5's at the end of 1976 to 80.0's at the m:nt which necessitated strenger tnan usual cellection end of 1980. efforts in 1980. Hcwever, the overa!! cendition of receiva-cits remains good. inventory feve!s in me vancus prcduct Total Capitalinvested businesses were managed througneut the year in re-socnse to actual and antic:cated customer demand, and y;ar-end balances were at levets consistent with the neecs of the business. aM Over the !ast five years. the Company's total working y {; h h p< W N ? l cacital has increased by $704 millicn. led by additions o totalmg $1.3 bution of cash and marketables. Most of the g] so y y, p 7g f atter increase came from intema!!y generated funds. H Q Q Since 1975, net licuic assets nave increased by $915 mil- '3 lien. after recuc:ng 'eng-term terrowings by 5239 million. N l. E [i j 4 i 'o a, This strengthening of the Company's licuidity cesiten has 'm 7' 'rs n m been acccmciisned by streng amcr asis on improving the tumover cf these elements of wer<mg cacital. sucn as Dunng recent years the Cemcany has been acie to l custcmer receivables. wrien are c!cseiy associated with mamtain anc grow its business from intemaJy gererated growtn in sa:es vclume. This emenasts niil centnue. funds. As prctit.cie cccortunities are ceveicced. it is Wely Significant amounts of funcs are generatec from that accitenal scurces cf funcs will be neeced. GE's streng Company oceraticns. pnncica:ty *nrougn net eamings and cacital structure and crecit ratmgs sneutc ensure avadacility l ncn-casn crarges against eamings for decrec:ation. ce-cf adecuate financial resources for centmued growth. l ~>e Gevr E ec9c 9wer '9 l ) I

Inflation in the U.S. Continued ct a high lev:1 during Supplernentary information

• • '**ar 1980, and most economists currently forecast double-digit Effectof Changing Prices rites again in 1981. Your management has stressed ree$* ed En
• "Y repeatedly the distortion that inflation has on the tradi-nn m mor.r.,c.ce o.,.srare ar,our m es tional methods of financial reporting. This distortion af-Sales of products and services fects incividuals, companies, and aggregate financial data to customers

$24.959 524.959 S24.959 on which national policy decisions are based. The chart below highlights this distortion by compar-Cost of goods sold 17,751 17.904 17.892 ing reported after-tax eamings with real after-tax Se!!ing generaland cctnings for all U.S. nonfinancial corporations for the administrative expense 4.258 4.258 4.258 y~.rs 1975 through 1980. Three inflation-related factors Depreciation. depletion and account for the difference between reported eamings and amortization 707 1.052 1.092 rail eamings: underdepreciation, reflecting the shortfall Operating costs 22.716 23.214 23.24' from wnting off facilities using acquired rather than re-Operating margin 2.243 1,745 1,717 placement costs;" phantom" profits which occur when Otherincome 564 564 564 lower than current costs of inventory output are charged Interest and other financial charges (314) (314) (314) against revenues; and the loss by more than one-third in Eamings before income taxes 2.493 1.995 1.267 tha general purchasing power of a dollar since 1975. Provision for income taxes (958) (958) (958) Minonty interest (21) (8) (8) Reported and Real Profits of Net eamings S 1.514 $ 1.029 5 1.001 U.S. Nonfinancial Corporations Eamings per snare S 6.65 5 4.52 5 4.40 Effective tax rate 38.4 % 48.0 % 48.7*.

1. po" Share owners' equity at Dec. 31

$ 8.200 S12.377 S12.913 sm a m.oreeanca $7

• fa)In collars of average 1980 curchasing power.

'm y.a This table shows two different ways of attempting to s Geeernoaacca n /. _ -.- T remove inflationary impacts from financial results as tradi- /7' r. %m A. tionally recorted. In both " adjusted for" columns, restate-ments are made to (1) cost of goods sold for the current UEO*d cost of replacing inventories, and (2) depreciation for the 2s ~~' current cost of plant and equipment. The column headed 1975 1978 1977 1978 '979 1980 (Est) "generalinflation" uses only a broad index to calculate the restatement, while the column headed " current costs" As reported, the aggregate after-tax earnings of all uses data more specifically applicable to GE. U.S. nonfinancial corporations grew each year except for The restatements to cost of goods sold are relatively a small decrease in 1980. The average annual growth rate small for GE because extensive use of f ast-in, first-out as reported since 1975 was about 13*L inventory accounting already largely reflects current costs However, atter adjustment for inflation, real earnings in in the traditional earnings statement. However, restate-1980 were lower thar any other year during the period, and ments to depreciation, which allocates plant and equip-actually have decIIned since 1975 at an average rate of about ment costs to expenses over time, are relatively large be-2% per year, cause of the hign rate of inflation, particularly in the last These data indicate that corporations, just like individ-three years. This is because traditional reporting of depre-uils, are suffering from the pernicious effects of inflation. It ciation based on onginal cost does not adequately reflect is of vitalimportance to all Americans that intelligent and higher prices 'or replacement of productAe capacity of forceful action be taken to begin the long and arduous task fixed assets which were purchased a number of years of removing the main controllable causes of inflation - ago. Both of these methods of adjusting forinflation result growth of the public sector at the expense of the private in lower eamings than traditionally reported. sector accompanied by burgeoning federal deficits and Significantly, because inflation adjustments are not al-ronproductive regulation. Iowable for tax purposes, the "real" tax rate was about 10 points higher than in traditional statements. Y;ur Company's financial results are not immune to Your management believes the " current cost" method ths distorting effects of inflation. Financial data elsewhere is more representative of GE's results, but emphasizes in this Annual Report, including the audited financial state-the consicei acie subjectivity involved in the calculations. m:nts, are presented using the tracitional basis of finan-These types of adjusted data are likely to be more cial reporting which does not fully identify the effects of usefulin reviewing trends over a pened of time, rather inflation. The table at upper ngnt presents information than in making comoansons of restatements for any one which supolements the traditional financia! Statements in penod or in specific analyses of one period compared with order to gauge the effect of changing prices on results for ancther. GE's after-tax eamings on the tracitional basis of 1980. accounting have been higher each year from 1976 througn 30 Annual Aeoort t980

1980: Sitc31975, a r:cassion y:ar fik31980, tho av rags An ther important hedge ag: Inst inflation ove the annual growth rate for earnings as reported was about long term is represented by the mineral resource assets of 16% Using the " current cost" method of removing the the Company. Neither traditional nor inflation-adjusted j cff: cts of inflation, earnings were as depicted on the green methods of measuring financial results can adequately i b:rs in the chart below. This shows a pattern similar to portray the value of unique, non-reproducible mineral re-Carnings as reported on the traditional basis, with an aver-source assets. Some measure of the significance of these ag3 annual growth rate since 1975 of about 24% assets is conveyed by statistical data of General Electric's wholly owned, consolidated affiliate, Utah International. Coking coalis mined by a Utah affiliate, Utah Devel-After Tax Earnings of General Electric opment Company (UDC). UDC mines and exports coking Adjusted for Current Costs coal from five mines under long-term renewable Special mn. Coal Mining Leases granted by the state of Queensland. S'

• a cc.nt =.,
  • "'"S*

Australia. At December 31,1980, UDC's share of present E E = c-a' a., export entitlements under these leases amounted to 414.7 E E E

1. 2 " '

million metric tons of coking coal. Total proved reserve E' I y quantities of the leased areas exceed current export 1 entitlements. Certain conditions exist under which export entitlements may be increased. The degree to which additional reserves could be mined would depend on com- =< l ] l l ] mercial feasibility and obtaining additional export entitle-i 1975 1978 13 197 19 198 is committed under Icng-term sales contracts. However, the purchasing power of a dollar in 1980 had Utah has steam coal reserves at several locations in diminished by more than one-third since 1975. To reflect the United States. In the West, Utah has steam coal re-this deterioration of the dollar's purchasing power, the blue serves at three principallocations: the Navajo Mine, held bars in the chart express current-cost earnings for the underlong term lease from the Navajo indian Tribe in New gars since 1975 in dollars of 1975 purchasing power. Mexico; the Trapper M!ne in Colorado; and the San Juan Ev:n on this basis, the data indicate a real average annual Mine in New Mexico. For a number of years, Utah had growth rate in earnings since 1975 of about 14% mined coal at the San Juan Mine on a contract basis but General Electric's real annual growth rate of 14% In earn-acquired the coal leases in December 1980. Total proved Ings since 1975 contrasts with the trend in real earnings for and probable reserves at these locations aggregated the aggregate of all U.S. nonfinancial corporations. As 1,464 million tons at year-end 1980. Twenty-two percent sh wn on page 30, aggregate earnings for all U.S. nonfinan-of these reserves are currently committed under long-term ci:1 corporations declined during the 1975 1980 period at an sales contracts average rate of about 2% per year. De: ling with inflation as it affects your Company re-West Virginia which contain 360 million tons of proved and quires identifying the distorting effects of inflation, under-probable reserves, primarily steam coal. These reserves standing them, recognizing them in business planning, are under development and commercial production is ex-and managing assets and cperations so as to overcome pected to begin on a limited basis during 1981. th3 effects of inflation. The Compnny is conducting an intemal program titled coal Year ended December 31 Effectively Coping with inflation. This program helps par-(Cuantities in mdlions) 1980 1979 1978 ticipants to understand chronic high inflation, realize how it distorts financial data, and learn how to minimize the im-Ccking coat (UDC share in 5*$ced (a) pact. More than 3,000 key managers and professionals 3h 13.1 13.8 13.0 participated in this program thrcugh 1980. Average once. metric ton (b) $51.09 $48.39 $47.78 Effective asset management through differentiated Steam coal (tons)(c) capital resource allocation is especially important in shipped (a) 10.5 8.8 7.1 coping with inflation. Investment in modern plant and Average price: ton S 7.82 $ 7.09 $ 6 F3 cquipment provides a direct effect on operations by im-(a) Quantities shipped about the same as 1978-80 production, proving productivity in the face of escalating costs. The (b) Recresents average pnces puciished by an agency of the Company's commitment to improving productivity is dem. Australian government since July 1978 for Queensfand ne crfor ackuinng the coal onstrated by substantial increases in expenditures for new (c) xc uc s nun tah plant and equipment during recent years. In addition. Stra-feases in Decemcer 1980. tegic emphasis is placed on those business opportunities having inflation-protection charactenstics. As one exam. GE's principal copper resource is the wholly owned ple. General E!ectric Credit Corporation owns over $5 bil. Island Ccpper Mine in British Columbia, Canada. Esti-tion of assets leased to others. Many of these assets offer mated reserves at the end of 1980 contain approx-significant potential gains on residual values after expira. imately 183 m:llion tons of ore with a grade of approx-tion of theleases. imately 0.48% copper. This mine also produces goid, The Generas E:ec:nc investor 31

silver, molybdenum, and rh;nium as by-products. Fifteen 1980 dollir purchasing pow:r ecuivdent of $2,46' t5 O percent of the copper ore reserves are presently commit-value the asset and calculate depreciation charges. Simi-ted under long-term sales contracts. These contracts call larly, the 1979 purchases of non-LIFO inventory sold in far sales based on London Metal Exchange prices, 1980 would be accounted for at their equivalent in terms of 1980 dollars, rather than in terms of the actual number of Island copper Mine Year enced Decerneer 31 dollars spent. Using this method, earnings for 1979 in P (Cuantties in mousancs) 1980 1979 1978 share owners' equity at December 31,1979, was $11,845 Ora milied (tons) 15,192 14,705 15,653 million. Av: rage percent recovery 85.2 % 87.5 % 86.6 % " Adjusted for current costs" refers to information pre-pared using a third approach to inventory and property. a 110.305 110,309 111,672 plant and equipment transactions. In this case, rather than Average price oer pound of copper restating to dollars of the same general purchasing power, -cocper 5 0.98 5 0.93 $ 0.64 estimates of specific current costs of the assets are used. -by. products 0.65 0.43 0.20 Principal types of information used to adjust for changes in (s) Quantitles sold aoout the same as 1978-80 croduction. spec:fic prices (current costs) are: for inventory costs, GE-generated indices of price changes for specific goods and Technical notes. The effect of changing prices on General services; and for property, plant and equipment, extemally Electric as set forth on page 30 has been prepared in accor-generated indices of price changes for major classes of dince with Financial Accounting Standards Board (FASB) assets. Data for mineral resource assets have been ad-requirements. Information in the following table presents justed by applying intemally generated indices to reflect additional data in accordance with FASB requirements. current costs. Adjustments for oil and gas properties are based on industry indices. Current costinformation in average At December 31,1980, the current cost of inventory dollars of 1980 purchasing power (a) was $5,701 million, and of property, plant and equipment on maces.xc.ci o.r.eare amountsi Nr-was $8,797 million ($5,251 million and $7,004 million, re-s N won ea , jar. spectively, at December 31,1979). In dollars of average earn-eawty Earn-Dm-once gain 1980 purchasing power, estimated current costs applica-saies .ngs e c.c.3i m egs e eenes cec. at nossne' ble to such assets increased during 1980, or during the 1980 524.959 $1.001 512.913 $4.40 $2.95 559 $(198) part of the year Pie assets were held, by approximately 1979 25.493 1,119 12.659 4.93 3.12 54 (237) 51,356 millior., which was $196 million less than the 1978 24,819 1.092 12,508 4.79 3.16 57 (145) 51,552 million increase which could be expected because 1977 21817 1.001 12,095 4.40 2.86 66 (69) of general inflation. The comparable increase for 1979 in 1976 22,717 885 11,947 3.92 2.46 79 (23) dollars of average 1980 purchasing power was approxi-1975 21,590 479 11,414 2.13 2.45 68 22 mately $1,261 million, which was $373 million less than (t) Average 1980 dollars, using the U.S. Consumer Price Index the $1,634 million increase which could be expected be-(1967 = 100): 1975-161.2; 1976-170.5; 1977-181.5; cause of generalinflation. 1978-195.4; 1979-217.4; and 1960-246.8. In presenting results of eitherof the supplementary (b) Current cost basis. accounting methods for more than one year, real trends (c) On net monetary items. are more evident when results for all years are expressed Proper use of supplementary information concerning in terms of the general purchasing power of the collar for a th3 effect of changing prices requires an understanding of designated penod. Results of such restatements are gen-c rtain basic concepts and definitions, erally called " constant do!!ar" presentations. In the six-in the table on paga 30, "as reported" refers to infor-year presentations shown at ' eft, dollar results for earfier mttion drawn oirectly from the financial statements and periods have been restated to their equiva!ent number of notes on pages 34 to 45. This information is prepared constant dollars of 1980 general purchasing power (CPI-U using generally accepted accounting principles which ren-basis). d:r an accounting based on the number of actual dollars Because none of these restatements is allowable for involved in transactions, with no recognition given to the tax purposes under existing laws, income tax amounts are fIct that the value of the dollar changes over time. the same as in the traditional statements (but expressed in " Adjusted for general inflation" refers to informa-constant dollars), tion prepared using a different approach to transactions All average annual growth rates in this Report use the involving inventory and property, plant and equipment as- "teast squares" method of ca!culation. sets. Under this procedure, the number of dollars involved There are a number of other terms and concepts in transactions at different dates are all restated to equiva-which may be of interest in assessing the significance of 1:nt amounts in terms of the general purchasmg power of the supplementary ir501ation shown. However,it is man-the collar as it is measured by the Consumer Pnce index agement's opinien trat the basic concepts discussed for all Urban Consum~s (CPI-U). For example, $1,000 above are the most significant for the reader to have in invested in a builoing.1967 would be restated to its mind while reviewing this information. 32 Anrtaf Pecert '980 ~ _ _

Rep 6rt of manageraent TJ the Share Owners of General Electric Company is composed solely of Directors from outside the Com-Tha financial statements of General Electric Company and pany, maintains an ongoing appraisal of the effectiveness consoudated affiliates are presented on pages 34 through of audits and the independence of the public accountants. 45 of this Annual Report. These statements have been The Committee meets penodically with the public account-pr: pared by management and are in conformity with gen-ants, management and internal auditors to review the crally accepted accounting principles appropriate in the work of each. The public accountants have free access to circumstances. The statements include amounts that are the Committee, without management present, to discuss b: sed on our best estimates and judgments. Financial in-the results of their audit work and their opinions on the formation elsewhere in this Annual Report is consistent adequacy of intemal financial controls and the quality of tith that in the financial statements. financial reporting. The Committee also reviews the Com-General Electnc maintains a strong system of internal pany's accounting policies, internal accounting controls, fin:ncial controis and precedures, supported by a staff of and the Annual Report and proxy material. corporate auditors and supplemented by resident auditors The Company has long recognized its obligation to located around the world. This system is designed to pro-conduct its affairs in an ethical and socially responsible vid 3 reasonable assurance, at appropriate cost, that as-manner. Its commitment to these objectives is reflected in sits are safeguarded and that transactions are executed key Company policy statements covering, among other in accordance with management's authorization and re-things, potentially conflicting outside business interests of corded and reported properly. The system is time-tested, Company employees, compliance with antitrust laws and innovative and responsive to change. Perhaps the most proper conduct of domestic and international business important safeguard in this system is the fact that the practices. It is not always possible to ensure that all em-Company has long emphasized the selection, training and ployees fully understand the importance of complying with dwelopment of professional financial managers to imple-the specific intent and spirit of these policies. When devia-mint and oversee the proper application of its inte.. it tions are detected or otherwise reported, the Company will co'itrols and the reporting of management's ster ; hip continue to act in a responsible manner with respect to of corporate assets and maintenance of accounis ". con-appropriate disclosure and reporting. Additionally, your formity with generally accepted accounting principles. management will continue efforts to create a strong com-The independent public accountants provide an ob. pliance environment for the ethical conduct of domestic j;ctive, independent review as to management's dis-and international business autivities. charge of its responsibinties insofar as they relate to the fairness of reported operating results and financial condi- ]s f tion. They obtain and maintain an understanding of GE's accounting and financial controls, and conduct such tests Senior Vice President Chairman of the 2 card and re!ated procedures as they deem necessary to arrive Finance and Chief Executive C'ficer at an coinion on the faimess of financial statements. The Audit Committee of the Board of Directors, which Fecruary 20.198i Report of independent certified public accountants TJ Share Owners and Board of Directors of in our opinion, the aforementioned financial state-General Electric Company ments present fairly the financial position of General We have examined the statement of financial position of Electnc Company and consolidated affiliates at December General Electnc Company and consolidated affiliates as 31,1980 and 1979. and the results of their operations and of December 31,1980 and 1979, and the related state-the changes in their financial position for each of the three m:nts of eamings. retained eamings and changes in fi-years in the penod ended December 31,1980, in conferm-nancial position for each of the three years in the period ity with generally accepted accounting cnnciples applied ended December 31.1980. Our examinations were made on a consistent basis. in accordance with generally accepted auditing standards. M and accordingly included such tests of the accountmg rec. 7/[tratsk [// M d d l ords and such other auditing procedures as we considered Peat. Marwick Mce" " & Co. necessary in the c:rcumstances. 345 Park Avenue ' a Ycrx N.Y.10154 February 20,1981 l The Gereral Eecmc mestor 33 1 {

Statement of earnings ^ ~ General Electnc Company and consolidated affiliates l For ttle years ended December 31 (in millions) 1980 1979 1978 Sales Sales of products and services to customers (note 1) $24,959 $22,461 $19,654 Operating Cost of goods sold 17,751 15,991 13,915 costs Selling, general and administrative expense 4.258 3,716 3,205 Depreciation, depletion and amortization 707 624 576 Operating costs (notes 2 and 3) 22.716 20.331 17,696 Operating margin 2,243 2,130 1,958 Otherincome (note 4) 564 519 419 Interest and other financial charges (note 5) (314) (258) (224) Eamings Earnings before income taxes and minority interest 2,493 2,391 2,153 Provision forincome taxes (note 6) (958) (953) (894) Minority interest in earnings of consolidated affiliates (21) (29) (29) Net earnings applicable to common stock $ 1.514 $ 1,409 $ 1.230 Earnings per common share (in dollars) (note 7) $6.65 $6.20 $5.39 Dividends declared per common share (in dollars) $2.95 $2.75 $2.50 Operating margin as a percentage of sales 9.0% 9.5% 10.0% Net earnings as a percentage of sales 6.1 % 6.3% 6.3% Statement of retained earnings Gtneral Electnc Company and consolidated affiliates For the years ended December 31 (In muhons) 1980 1979 1978 Retained Balance January 1 $6,307 $5,522 $4,862 earnings Net earnings 1,514 1,409 1,230 Dividends declared on common stock (670) (624) (570) Balance December 31 $7.151 56.307 $5.522 Tha information on pages 33 and 37-45 is an integral part of these statements. t 34 Annua 6 Recort 1980

Etstement of financial po:ition General Eiectnc Company and consolidated affiliates At Decemcer 31 (In millions) 1980 1979 Assets Cash (note 8) $ 1,601 $ 1,904 Marketable secunties (note 8) 600 672 Current receivables (note 9) 4.339 3,647 Inventories (note 10) 3.343 3,161 Current assets 9,883 9,384 Property, plant and equipment - net (note 11) 5.780 4,613 Investments (note 12) 1,820 1,691 l Other assets (note 13) 1.028 956 Total assets $18.511 $16.644 Uabilities Short-term borrowings (note 14) $ 1,093 871 and equity Accounts payable (note 15) 1,671 1,477 Progress collections and price adjustments accrued 2,084 1,957 Dividends payable 170 159 Taxes accrued 628 655 I Other costs and expenses accrued (note 16) 1.946 1,753 l Current liabilities 7,592 6.872 Long-term borrowings (note 17) 1,000 947 Other liabilities 1.565 1.311 Totalliabilities 10.157 9.130 i Minority interest in equity of consolidated affiliates 154 152 Preferred stock ($1 par value; 2,000,000 shares ( authorized; none issued) Common stock ($2.50 par value: 251,500,000 shares authorized: 231,463.949 shares l issued 1980 and 1979) 579 579 Amounts received for stock in excess of par value 659 656 Retained earnings 7,151 6.307 8,389 7,542 l Deduct common stock held in treasury (189) (180) Total share owners' equity (notes 18,19, and 20) 8.200 7.362 Totalliabilities and equity $18.511 $16.644 l l Commitments and contingent liabilities (note 21) Tha information on pages 33 and 37-45 is an integral part of tfus statement. The General E!ectnc Investor 35

Statement of changes in financial position General Electnc Company and consolidatid affiliates For the years ended December 31 (In millions) 1980 1979 1978 Source of From operations funds Net earnings $1,514 $1,409 $1,230 Depreciation, depletion and amortization 707 624 576 Investment tax credit deferred-net 56 45 25 income tax timing differences 63 (37) 32 Earnings retained by nonconsolidated finance affiliates (22) (17) (16) Minority interest in earnings of consolidated affiliates 21 29 29 2,339 2,053 1,876 increase in long-term borrowings 122 50 96 Newlyissued common stock 3 Disposition of treasury shares 136 148 190 Increase in current payables other than short-term borrowings 498 786 570 Decrease in investments 24 Other - net 143 101 150 Total source of funds 3.238 3.138 2,909 Application Additions to property, plant and equipment 1,948 1,262 1,055 of funds Dividends declared on common stock 670 624 570 increase in investments 129 281 Reduction in long-term borrowings 69 97 386 Purchase of treasury shares 145 156 196 Increase in current receivables 692 358 306 increase in inventories 182 158 399 Total application of funds 3,835 2,936 2,912 Net change Net change in cash, marketable securities and short-term borrowings $ (597) $ 202 (3) Analysis of increase (decrease)in cash and marketable secunties $ (375) $ 113 $ 185 net enange Decrease (increase) in short-term borrowings (222) 09 (188) Increase (decrease) in net liquid assets $ (597) S 202 (3) The mformation on pagea 33 and 37-45 is an integral part of this statement. 36 Annual Reoort 1980

SEntnary of signifiCant ortiz: tion of pri:r servica iirdiiiti:s ov:r a period of 20 accounting POliCIOS years are being charged to operating expenses currently. Investment tax credit The investment tax credit is recorded by the " deferral method" and is amortized as a reduction of the provision for taxes over the lives of the facilities to which the credit applies, rather than being " flowed through" to income in the year the assetis acquired. Basis of consolidation I" Ths financial statements consolidate the accounts of the gubstantia ly all manufacturing inventories located in the pir;nt General Electric Company and those of all major-U.S. are valued on a last-in first-out, or LIFO, basis. Manu-ity-owned and controlled companies ( affiliated compa-facturing inventories outside the U.S. are generally valued ni;s,*), except finance companies whose operations arf on a first-in first-out, or FIFO, basis. Valuations are based not similar to those of the consolidated group. All signifi-on the cost of material, direct labor and manuf acturing cant items relating to transactions among the parent and overhead, and do not exceed net realizable values. Cer-affiliated companies are eliminated from the consolidated tain indirect manufacturing expenses are charged directly to peratingc is during the period incurred, rather than e nonconsolidated finance companies are included in the statement of financial position under investments Mining inventories, which include principally mined and are valued at equity plus advances. In addition, com-ore and coal, metal concentrates and mining supplies, are pmies in which GE and/or its consolidated affiliates own stated at the lower of average cost or market. The cost cf 20% to 50% of the voting stock (" associated companies,) mining inventories includes both direct and indirect costs ars included under investments, valued at the appropriate consisting of labor, purchased supplies and services, and l shire of equity plus advances. After-tax eamings of non-depreciation, depletion and amortization of property, plant consolidated finance companies and assoc ated compa-and equipment. ni;s are included in the statement of earnings under other Property, plant and equipment Manufacturing plant and equipment includes the onginal nonconsolidated uranium mining company (see cost of land, buildings and equipment less deptcciation, j not212) is also included under investments and is valued which is the estimated cost consumed by wear and obso-at lower of cost or equity, plus advances. lescence. An accelerated depreciation method, based I principally on a sum-of-the-years digits formula, is used to ompany and its consolidated affiliates record a record depreciation of the original cost at manufacturing tr:nsaction as a sale only when title to products passes to plant and equipment purchased and installed in the U.S. th3 customer or when services are performed in accord-s@sequemo MO. Wst manufacturing plant and ance with contract terms. equipment located outside the U.S.,s depreciated on a i Vacation expense straight-line basis. If manufacturing plant and equipment Most employees earn credits during the current year for is subject to abnormal economic conditions or obsoles-vacations to be taken in the following year. The expense cence, additional depreciation is provided. Expenditures for this liability is accrued during the year vacations are for maintenance and repairs of manuf acturing plant and cimed rather than in the year vacations are taken. equipment are charged to operations as incurred. Pensions I The cost of minin" paperties includes initial expendi-l Inv:stments of the General Electric Pension Trust, which tures and cost cf majoI rebuilding projects which substan-funds the obligations of the General Electric Pension Plan, tially increase tM usefullives of existing assets. The ecst ara carried at amortized cost plus programmed apprecia-of mining properties is depreciated, depleted or amortized tion in the common stock portfolio. The funding program over the usefullives of the related assets by use of unit-of-and Company cost determination for the Pension Plan use roduction, straight-line or declining-balance methods. 6% as the estimated rate of future Trust income. Trust Mining exploration costs are expensed until it is deter-income includes recognition of appreciation in the com-mined that the development of a mineral deposit is likely to mon stock portfolio on a systematic basis which does not be economically feasible. After this determination is made, l givs undue weight to short-term market fluctuations. Pro-all costs related to further development are capitalized. grammed appreciation will not be recognized if aversca Amortization of such ccsts begins upon commencement carrying value exceeds average market value, calcuhted of production and is over ten years or the productive life of on a moving basis over a multiyear penod. the property, whicheveris less. Changes in prior service liabilities of the Plan are am-Oil and gas properties are accounted for by use of the artized over 20 years. Net actuarial gains and losses are full-cost method. amortized over 15 years. Costs of a separate, supplementary pension plan, pri-manly affecting long-service professional and managerial employees, are not funded. Current service costs and am-The General E:ectnc lovestor 37

a Notes to financial statements ciation of common stock was not exceeded in any year, Condensed information for the General Electric Pen-sion Trust appears below. Prior-year as well as current-year data are presented in accordance with new standards issued in 1980 by the Financial Accounting Standards Board (FASB). General Electric Pension Trust

1. Sales Change in net assets at current value Approximately one-eighth of sales were to agencies of the Un mmensi For me year 1980 1979 1978 U.S. government, which is the Company's largest single customer. The principal source of these sales was the Net assets at January 1

$4,968 $4,202 $3,734 Technical Systems and Materials segment of the Com-Company contnbutions 404 341 317 Employee contnbutions 86 94 83 piny's business. Investment inccme 435 383 312 Pensions paid (254) (225) (201)

2. Operating costs Unrecognized portion of Operating costs by major expense categones are shown below:

change in current value 779 173 (43) on mmens: 1980 1979 1978 Net assets at December 31 $6.418 $4.968 $4.202 Employee compensation, including benefits S 9,196 $ 8.286 $ 7,401 Net assets at current value Mitenals, supolies. ser-on mmens, oecomeer st 1980 1979 1978 vices and other cost! 12,696 11,320 9.867 U.S. govemment obligations Depreciation, depletion and amortization 707 624 576 and guarantees S 44 $ 118 $ 93 Corporate bonds and notes 727 496 340 Tues. except Social Secunty and those on Real estate and mortgages 825 713 725 income 299 259 251 Common stocks and other increase in inventones equity secunties 4.181 3.193 2.726 Junng the year (182) (158) (399) 5,777 4.520 3.884 $22.716 $20.331 $17.696 Cash and short-term investments 553 371 240 Supplemental details are as follows: ur entvalue f net assets $6.4 $4.96 $4.20 on mmensi 1980 1979 1978 Carrying value of net M antenance and repairs $784 $775 $67T assets $5.593 $4.922 $4.329 Company-funded research and development 760 640 521 The actuarial present value of accumulated plan ben-Social Secunty taxes 484 471 397 efits for the General Electric Pension Plan and the supple-Advertising 315 282 247 mentary pension plan together represent over 90% of ac-Mineral royalties and cumulated pensicn plan benefits for General Electric and gxport outies 80 82 79 ts consolidated affiliates. These present values have Foreign currency translation gains, after recognizing re-been calculated using a 6% interest rate assumption as of lited income tax effects and minority interest share, were December 31 for each of the years in the table below. The $40 million in 1980 and $12 million in 1979 and 1978. table also sets forth the total of the current value of Pension Trust assets and the relevant accruals in the l

3. Pensions Company's accounts.

Total pension costs of General Electric and consolidated cffi'iates were $478 million in 1980, $413 million in 1979, General Electric Pension Plan and Supplementary Pension l cnd $381 million in 1978. General Electric and its affiliates Plan l h:ve a number of pension plans. The most significant of on meonsloecember st 1980 1979 1978 th:se plans is the General Electric Pension Plan (the Estirrated actuanal present " Plan"),in which substantially all employees in the U.S. vaheof accumulated ara participating. Approximately 80,800 persons were re. plan benefits: Vested benefits $6.027 $5,426 $4,732 c;iving benefits at year-end 1980 (75,700 and 72,100 at r Ncn vested benefits 415 382 331 i y;ar-end 1979 and 1978, respectively). Total benefits $6.442 $5.808 $5.003 l Pension benefits under the Plan are funded through Current value of trust assets l thm General Electric Pension Trust. Earnings of the Trust, p s acen;ais $6.580 $5.075 $4273 including the programmed recognition of common stock appreciation, as a percentage of the carrying value of the For pension plans not included above, there was no portfolio, were 8.4% for 1980 and 1979, and 7.8% for significant difference between accumulated benefits and 1978. The limitation on recognition of programmed appre-the relevant fund assets plus accruals. i 38 Annual Report 1980 l

• Tfie fdregoing amounts ars bas:d on n:w FASB stand-in thnffect of timing differences r:sult principally from fluc-trds which differ from those used by the Company for tuaticas in foreign eamings and tax rates, and from recog-funding and cost determination purposes. Based on the nizing in the current year for tax payment purposes the Cctuarial method used by the Company, and with assets at results of transactions in Australia recorded for financial c:rrying value, unfunded and unamortized liabilities for reporting purposesin otheryears.

ths two pnncipal pension plans totaled $964 million, investment credit amounted to $92 million in 1980, com- $1,082 million and $882 million at year-end 1980,1979 pared with $76 million in 1979 and $51 million in 1978. In cnd 1978, respectively. 1980, $36 million were included in net eamings, compared An increase in pensions of retired emplovaes effec-with $31 million in 1979 and $26 million in 1978. At the end tivs February 1,1981, will increase the ac;uarial present of 1980, the amount still deferred and to be included in net vilue of accumulated vested benefits by an estimated eamings in future years was $262 million. $196 million. Effect of timing differences on U.S.

4. Other income federalIncome taxes on m,nons:

1980 1979 1978 Un mueno increase voecreasenn promsen for mcome taxes 1980 1979 1978 Net eamings of GE Credit Corporation $115 5 90 $ 77 Tax over book depreciation S 48 S 23 $ 26 income fmm: Undistnbuted eamings of affiliates Marketable secunties and bank and associated companies 29 (2) 8 deposits 229 229 140 Margin on installment sales 1 (10) (10) Customer financmg 72 ,0 49 Provision for warranties (46) (36) (31) Royaity and technical agreements 52 50 44 Other-net _11_8) _16) $g) (6 Associated companies and non-consolidated uranium mining affiliate 22 11 34 $g 3g The cumulative net effect of timing differences has re-e 21 20 19 suited in a deferred-tax asset which,s shown under other i Dividends 13 11 10 Other sundry items 40 38 46 assets. $564 $519 $419 Reconcillation from statutory to effective 1980 1979 1978 S. Interest and other financial charges U.S. federal statutory rate 46.0 % 46.0 % 48.0 % Int: rest capitalized on major property, plant and equip-Reduction in taxes resulting from: mint projects in 1980 was $21 million. Varying tax rates of consolidated affiliates (including DISC) (4.7) (3.3) (3.4)

6. Provision for income taxes inclusion of eam,ngs of the Credit Corporation in before-tax on minonsi 1980 1979 1978 ncome on an after-tax basis (2.1)

(1.7) (1.7) U.S. feceralincome taxes: Investment credit (1.5) (1.3) (1.2) Estimated amount payable $574 5599 $590 Income tax at capital gains rate (0.1) (0.6) Effectof tmingdtferences 14 (31) (13) Other-net 0.8 0.2 0.4 lovestment credit deferred -net 56 45 25 Effective tax rate 38.4 % 39 9*'c 41.5 % 644 613 602 Foreignincome taxes: Based on the location of the component furnishing goods Estimated amount payable 238 323 221 or services, domestic income before taxes was $1,854 Effectof timingdifferences 39 16) 45 million in 1980 ($1.706 million in 1979 and $1,592 million 277 317 266 in 1978). The corresponding amounts for foreign-based Other (principally state and local operations were $639 million, $685 million and $561 mil-income taxes) 37 23 26 lion in each of the last three years, respectively. Provision $958 $953 $894 for income taxes is determined on the basis of the jurisdic-tion imposing the tax liability. Therefore, U.S. and foreign All General E!ectric consolidated U.S. federal income tax taxes shown at the left do not compare directly with these i r;tums have been closed through 1972. segregations. Provision has been made for federal income taxes to be paid on that portion of the undistnbuted earnings of affiliates

7. Earnings per common share and associated companies expected to be remitted to the Earnings per share are based on the average number of parent company. Undistnbuted earnings intended to be rein-shares outstanding. Any dilution which would result from vested indefinitely in affiliates and associated companies to-the potential exercise or conversion of such items as stock t", led $1.111 million at the end of 1980. $944 miliion at the options or convertible debt outstanding is insignificant end of 1979, and $815 million at the end of 1978.

(less than 1% in 1980,1979 and 1978). Changes in estimated foreign income taxes payable and The Generai Electnc investor 39

8. Cash and marketable securities

12. Inves, nents D: posits restricted as to usage and withdrawal or used as on mdiensi December 31 1980 1979 pirtial compensation for short-term borrowing arrange-Nonconsolidated finance affiliates S 938

$ 824 m:nts were not maten,al. Nonconsolidated uranium mining Marketable securities (none of which are equity secun-affiliate 188 157 tits) are carried at the lower of amortized cost or market Miscellaneous investments (at cost): vLlue. Carrying value was substantially the same as mar-Govemment and govemment-kit value at year-end 1980 and 1979. guaranteed securities 187 233 Other 136 148

9. Current receivables 323 381 on mations) Decerreer 31 1980 1979 Marketable equity secunties 44 44 Customers' accounts and notes

$ 3,816 $3.254 Associated ccmpanies 342 301 Associated companies 25 36 t.ess allowance forlosses (15) (16) Nonconsolidated affiliates 17 7 $1.820 $1.691 Condensed consolidated financial statements for the 4.442 3.736 principal nonconsolidated finance affiliate, General Less allowance forlosses (103) (89) Electric Credit Corporation (GECC), follow. During the $ 4.339 $3.647 normal course of business, GECC has transactions with the parent General Electric Company and certain of its

10. Inventories consolidated affiliates, and GECC results are included in General Electric's consolidated U.S. federal income tax go,,uensi cecemeer 31 1980 1979 return. However, virtually all products financed by GECC R1w matenals and work in process

$ 2,082 $1.943 are manufactured by companies other than General Finished goods 961 966 Electric. More detailed information is available in GECC's Unbilled shipments 300 252 1980 Annual Report, copies of which may be obtained by 3 3.343 $3.161 writing to: General Electric Credit Corporation, P.O. Box About 84% of totalinventories are valued using the LIFO 8300, Stamford, Connecticut 06904. mLthod ofinventory accounting. If the FIFO method ofinventory accounting had been General Electric Credit Corporation used to value all inventories, they would have been Financial position $2.240 million higher than reported at December 31, on m monsi cecember 31 1980 1979 1980 ($1,950 million higher at year-end 1979). Cash and marketable secunties $ 531 $ 374 Receivables:

11. Property, plant and equipment Tir*e sales and loans 8.159 7,480 na men.ons:

1980 1979 De erred income (1.380) (1.124) Major c! asses at December 31: 6,779 6.356 Manufactunng plant and equipment investment in leases 1.643 1.207 Land and improvements $ 139 $ 125 Sundry receivables 197 141 Buildings, structures and Total receivables 8.619 7,704 related equipment 2.329 2.098 Allowance for losses (249) (231) Machinery and equipment 6.197 5.314 Net receivables 8.370 7.473 Leasehold costs and manufac-Other assets 443 321 tunng plant under construction 453 372 Total assets $9.344 $8.168 Mineral property, plant and equipment 1.917 1.456 Notes payable: $11.035 $9.365 Due within one year $4.425 $3.921 l i Cost at January 1 $ 9.365 $8.328 Long-term -senior 1.984 1,743 Additions 1.948 1.262 - subordinated 400 325 Dispositions (278) (225) Otherliabilities 707 631 Cost at December 31 $11.035 $9 365 Totalliabilities 7.516 6.620 Deferred income taxes 876 718 Aciumulated depreciation, depletion Deferred investment tax credit 21 13 and amortization Bilance at January 1 3 4.752 $4.305 Capital stock 658 566 l Current-year prevision 707 624 Additional paid-in capital 12 12 Dispositions (214) (188) Retained eamings 261 239 Other changes 10 11 Ecuity 931 817 Balanca at December 31 $ 5.255 $4.752 Totalliabilities, deferred tax Proper 6y. plar;t and equipment less depreciaQ,n, depletion and amortization at December 31 3 5.780 $4.613 1 40 Annual Recort 1980

Goqerad Electric credit Corporation

13. Other asseta Current and retained semings i

1980 1979 m w e ss er m v.er 1980 1979 1978 Long-term receivactes $340 $307 Eamedmccme $1.3P9 51.102 5 813 Deferred enarges 198 145 Excenses: Peal estre ceveiopment projects 132 81 interest and ciscount 719 528 337 Recoveracte engmeenng costs on Operating and gcvemrnect contracts 113 121 acmarustrative 451 396 315 Customer finarcng 103 107 Pn:nnsen for lesses Ucerses and cther mtang:bies-net 75 52 -rece<vactes 75 69 56 Ceferrec inccme taxes 21 98 -cther assets 3 (2) S Ctner 46 45 Provtsien forincorne taxes 26 21 20 $1028 $356 1.274 1 012 736 Net sammgs 115 90 77 f.icenses and other intangibles acquired after Octcber Less emcends (93) (72) (62) 1970 are being amortized over apprecriate penods of Retainec eammgs at time. January 1 239 221 206 Nmc#$ m ow gs e $ 261 S 239 $ 221 The average balance of short-term borrowings exc!uding investment in the nonconsolidated uranium mining af. the current portion of !cng-term borrowings, was 5822 mil-f;!iate consists of investment in a wnolly owned affiliate tien dunng 1980 (calculated by averaging a!I month-end (estac!ished in the course of cbtaining a U.S. Department calances for the year) compared with an average balance of Justica Business Adviscry C;earance Procedure Letter of $705 mi!! ion in 1979. The maximem balance included in in connestion with the 1976 Utah merger) to wnich a!I of these calculations was 5962 million and $727 million at the the then existing uranium business of Utah has been end of October 1980 and March 1979, respectively. The transferred. All common stock of this affiliate has been average effective interest rate for the year 1980 was 18.9%. placed in a vetng trust controlled by independent voting and for 1979 was 17.6%. These average rates represent trustees. Prior to the year 2000. General Electric and its total short-term interest incurred diviced by the average affiliates may not withdraw the commen stock from the balance outstanding. A summary of short-term borrowings voting trust except for sale to unaffiliated third parties. and the applicable interest rates is shown be!cw. Directors and officers of the affiliate may not be directors, officers, er employees of General E!ectnc. Utah or of any short-term borrowings of their affiliates. Uranium may not be sold by this affiliate, on e., c.c c.,33 1980 1979 ~ in any state or form to, or at the direction of General

• m.

was. E!ectric cr its affiliates. d*j -J'y m All outstanding shares of preferred stock cf the ura-Parent nctes witn trust nium affiliate are retained by Utah as an affiliate of cecar'rnents $353 15.05 % $290 12.62 % General E!ectnc. Payment of cumulative quarterty divi-Conschca*ec aff.liate dends out cf legally avai!able funds on this preferred stock cam cenewegs 539 30.83 389 27.10 is mincatory in amounts equal to 85% of the affiliate's net Cmerheng ement Lfter-tax income for the previous Guarter (withcut takin9 cm 201 192 acccunt of any deduction for exploration excense as de- $1.093 sa71 fined). Utah, as holder of the preferred stccx. must make loans with up to ten year matunties wnen requested by the Parent borrowings are from U.S. scurces. Scrrowings of Offiliate, althcugh the aggregate amcunt of such ! cans consolidated affiliated ccmpanies are pnmanfy from for-need not at any time exceed preferred cividend payments eign sources. Other borrowings include amounts from for the immeciately preceding two calendar years. nonconsolidated affiliates of $35 million in 1980 (565 mil-The estmated realizable value of miscellaneous lion in 1979). investments was $287 million at December 31.1980 A!thougn the total unused credit available to the Com-($350 millien at December 31,1979). pany through banks and commercial crecit markets is not Marxetable equity secunties are valued at the lower reacity cuantifiable. informal crecit lines in excess cf $1 of ecst or market. Aggregate market value of marketacle bi!!icn nad been extended by accreximately 100 U.S. equity secuntes was $242 million and 5181 mi!!icn at banks at year end. ycir-end 1980 and 1979, respectively. At Decemcer 31. 1980. gross unrealized gains on marnetable ecuity secun-ties were S198 million. Investments in noncensOcated affi!iates and associ-ated ccmcanies inctuced acvanos of $180 million at De-cemcer 31,1980 ($123 mi!! ion at Decemcer 31.1979). 7be C-eeerai Eec nc tr vester 41

15. Acccunts payacl3 Ut'h Int:rnitionil Inc. not;s with b;nks c rs sub.ect fu ~

rin mdl.ons) Decerncer 31 1980 1979 average interest rates at year-end 1980 and 1979 of 11.3% and 7.9%, respectively. Trade accounts $1.402 S1,259 Collected for the account of others 203 172 Borrowings of General Electric Overseas Capital Nonconsolidated affiliates 66 46 Corporation are unconditionally guaranteed by General $1.671 $1.477 Electric as to payment of principal, premium if any, and interest. This Corporation primanly assists in financing capital requirements of foreign companies in which

16. Other : sts and excenses accrued General Electric has an equity interest, as weit as financ-Tha balances at year-end 1980 and 1979 included com.

ing certain customer purchases. pensation and benefit costs accrued of $703 million and Borrowings include 4%% Guaranteed Debentures $641 million, respectively. due in 1987, which are convertible into General Electric common stock at $80.75 a share, and 5%% Stening; Dollar Guaranteed Loan Stock due in 1993 in the amount of E3.6

17. Lc.ng-term cerrcwings million ($9 million), convertible into GE common stock at on mimonii saan9 runa<

$73.50 a share. During '980 and 1979, General Electric CuuS*y, ,' p'*eag Overseas Capital Corporation 4%% Guaranteed Bonds 0u ,g, having a face value and a reacquired cost of $2 million General Electnc Company: were retired in accordance with sinking fund provisions. 5%% Notes S 62 $ 59 1991 1972-90 All other long term Dorrowings were largely by foreign 5.30% Debentures 70 80 1992 1973-91 and real estate development affiliates with various interest rates and maturities and included amounts due to noncon-8 0 solidated affiliates of $7 million in 1980 and 1979. Utin Intemational Inc.: Long-term borrowing maturities during the next five Notes with banks 37 5 1993 1981-93 8% Guaranteed Sinking years, including ihe portion classifiec as current, are Fund Decentures 15 17 1987 1977-87 $91 million in 1981, $130 million in 1982, $62 million in 7.6% Notes 28 32 1988 1974-88 1983, $42 million in 1984 and $68 million in 1985. These Other 32 25 amounts are after deducting reacquired debentures held G;neral Electnc Overseas in treasury for sinking fund requirements. Castal Corporation: 4%% Bonds 23 24 1985 1976-84 4%% Decentures 50 50 1987 None 5%% Sterting: Dollar Guaranteed Loan Stock 9 8 1993 None Other 34 37 All other 217 156 $1,000 $947 The amounts shown above are after deduction of the face vilue of secunties held in treasury as shown below. Face value of long-term borrowings in treasury dn memons: Decemter 31 1980 1979 General E!ectnc Company: 5.30% Debentures $50 550 7%% Decentures 35 29 8%% Debentures 12 5 General E!ectnc Overseas Capital Corporation: 4%% Bonds 6 7 42 Annual Aeoort 1980

16, Cdmhlon stick 1980 1979 1980 1979 addition, retained eamings have been increased by $10 million ($5 million reduction at December 31,1979), wnich Ja mm.cnsi (Thousancs of sr ares, Common stock issued represents the change in equity in associated companies Ba!!nce January 1 and since acquisition' Decemoer 31 5 579 S 579 231.464 231.464 Amounts received for

20. Stock option information stock in excess of pa' Stock option plans, appreciation rights and performance Yal ce January 1 5 656

$ 658 units are described in the Company's current Proxy State-Gsn (loss) on ment. A summary of stock option transactions during the disocsition last two years is shown below: cf treasury stocx 3 (2) balince December 31 S 659 5656 Stock options average per snare Common stock held in snares sue,ect ocoon uamet 5 oc'*" C"C' C"C' treasury Balince January 1 $180 5172 3.625 3.428 Balance at January 1 Purchases 145 156 2,684 3,155 1979 4,088.853 551.37 $47.13 s cns Opens granted 1,023,122 46.25 46.25 ee savings Options exercised (98.145) 40.63 50.14 otans (99) (124) (1.879) (2,492) Employee stoex Octions surrendered on exer-ownership pian (16) (11) (296) (213) c:se of appreciation nghts (68.834) 40.52 49.17 incentive compensa-Options terminated (186.068) 50.77 tion plans (7) (8) (158) (152) Balance at Decemeer 31' Stock ootions and 1979 4,758,928 50.67 50.63 I I () I 5) ( ) Options granted 98.100 61.50 61.50 Convers n of verseas Options exercised (273,193) 44.13 56.16 CapitalCorocration loan stock (2) Options surrendered on exer. Br.iance December 31 S189 5180 3.699 3.625 cise of accreciation rignts (123.350) 41.93 54.92 Options terminated (157.163) 51.02 At December 31,1980, and December 31,1979, respec. Balance at December 31, 1980 4.303.322 51.56 61.25 tivaly,227,765,000 and 227.839,000 common shares c ro outstanding. Common stock held in treasury at De-c:mber 31,1980, included 1,921,706 shares for the de. The number of shares available for granting additional op-firred compensaticn provisions of incentive compensation tions at the end of 1980 was 1,862,756 (1,831,456 at the pl ns (1,785,656 shares at Decemoer 31,1979). These end of 1979). shares are carried at market value at the time of allotment, which amounted to $96 million and $88 million at Decem.

21. Commitments and contingent liabilities ber 31,1980 and 1979, respectively. The liability is re.

Lease commitments and contingent liabilities, consisting corded under other liabilities. of guarantees, pending litigation, taxes and other claims, Other common stock in treasury, which is carried at in the opinion of management, are not considered to be cost, aggregated 1,777,382 and 1,839,762 shares at De. matenal in relation to the Company's financial position. c:mber 31,1980 and 1979. respectively These shares are held for future corporate requirements, including distri-I butions under employee savings plans, incentive compen-sation awards and possible conversion of General E!ectric Ov:rseas Capital Corporation convertible indebtedness. Tha maximum number of shares required for conversions ets 736,079 at Decemcer 31,1980 (737,725 at Decem-ber 31,1979). Corporate requirements of shares for bene-l fit plans and conversions may be met either from unissued shires or from shares in treasury. Dunng 1978, the balance in common stock issued d.d not change, amounts received for common stock in ex-ciss of par value decreased by $10 million, and the bal-anca of common stock held in t:easury increased by $6 i million.

19. P etained eamings R:tained earnings at year-end 1980 included approxi-matsiy $251 million ($246 millior at Decemcer 31,1979) rcorasenting the excess of earnings of nonconsolidated affiliates over cividends received since their formation, in 7be Ger*eral Eectnc trwester 43

Industry segment information Revenues Onniicns) FormeyearsendedDecomeer31 Totalrevenues Inteesegmentsales Esima!saies and oterencome 1980 1979 1978 1980 1979 1978 1980 1979 1978 Consumerproductsand service ? $ 5.599 5 5,358 $ 4,788 5 201 S 199 5 188 5 5.398 S 5,159 $ 4,600 NeteamingsofGECreditCorp. 115 90 77 115 90 77 Total consumer products and services 5,714 5.448 4,865 201 199 188 5,513 5,249 4,677 Industnalproductsandcomponents 5,157 4,803 4,124 565 508 468 4,592 4.295 3,656 Powersystems 4,023 3,564 3,486 175 210 174 3,848 3,354 3,312 Technicalsystems andmaterials 7,128 6.061 4,745 258 255 190 6,870 5,806 4,555 Naturalresources 1,374 1,260 1,032 1.374 1,260 1,032 Foreignmulti-industryoperations 3,234 2,901 2,767 75 64 55 3,159 2,837 2,712 Corporateitems andeliminations (1,107) (1.057) (946) (1,274) (1.236) (1,075) 167 179 129 Total 525.523 522,980 $20.073 5 - S - S $25.523 522.980 $20.073 Operatingprofit Netearnings FortoyearsendedDecameer31 Fortevoarsended Decemcor31 1980 1979 1978 1980 1979 1978 Consumerproductsandservices S 558 5 568 5 574 S 292 5 311 5 300 NetearningsofGECreditCorp. 115 90 77 115 90 77 Tot lconsumerprocuctsandservices 673 658 651 407 401 377 Industnalproductsandcomponents 568 485 J26 315 272 223 Powersystems 194 174 196 141 114 93 Technicalsystemsandmaterials 774 672 545 373 356 278 N turalresources 404 431 372 224 208 180 Foreignmulti-industryoperations 285 241 245 68 65 76 Totalsegmentoperating profit 2.898 2.661 2,435 Interest and other financial charges (314) (258) (224) Corporateitemsandeliminations (91) (12) (58) (14) (7) 3 Total S 2.493 $ 2,391 S 2.153 $ 1.514 S 1.409 $ 1.230 Assets Property,plantand equiprnent Atoecemcor31 FortoyearsendedDecemcee 31 Deorecanon.deoieten and Addmons amortizabon 1980 1979 1978 1980 1979 1978 1980 1979 1978 Consumerproductsandservices S 2,325 S 2.157 S 2,018 5 238 $ 208 $ 169 5 133 $ 115 5 104 investmentinGECreditCorp. 931 817 677 Total consumer products and services 3.256 2.974 2.695 238 208 169 133 115 104 Industnalproductsandcomponents 2,595 2.329 2,125 224 176 166 109 106 91 Powersystems 2,289 2,135 2,105 129 101 84 91 84 79 Technica!systemsandmaterials 4,475 3.422 2,683 693 444 289 200 163 150 Naturalresources 2,109 1,679 1,489 446 201 212 94 83 77 Foreignmult:4ndustryoperations 2,564 2.259 2,100 161 109 119 66 61 64 Corporateitemsandeliminations 1 223 1.846 1.839 57 23 16 14 12 11 Total $18.511 $16.644 $15.036 S 1.948 S 1.262 S 1.055 5 707 5 624 5 576 Consumer Products and Services consists of major accliances, General Electric Credit Corporation, a wholly owned noncon-air conditioning equipment, fighting products, housewares and solidated finance affiliate, engages pnmanly in consumer, com-audio oroducts. television receivers. and broadcasting and ca-mercial and industnal fir ancing, pnncipally in the U.S. It also blevision services. It also includes service operations for major participates, to a lesser degree, in life insurance and fire and apoPances, air conditioners, TV receivers, and housewares and casuaity insurance activities. Procucts of companies other than audio products. GE constitute virtually all products financed by GECC. 44 Annuai Aeoort 1980

I Inc'ustdal. Products and Components includ:s components Foreign Multi-industry Operations consists pnncipally of f:r-(appliance controls, small motors and ebetronic components); eign affiliates which manufacture products pnmanly for sale in industnal capital eculpment (construction, automation and trans- ' heir respective home markets. port tion); maintenance, inspection, repair vid rebu:lding of electric, electronic and mechanical apparatus; and a network of Net earnings for Industry segments inc!ude allocation of corpo-supply houses offenng products of General E!ectric and other rate interest income, expense and other financial charges to par-manufacturers, ent company components based on change in Individual compo-nent average nonfixed investment. Interest and other financial Power Systems includes steam turbine-generators, gas tur-charges of affiliated companies recognize that such companies bines, nuclear power reactors and nuclear fuel assemolies, generally service their own debt, transformers, switchgear, meters, and installation and mainte-General corporate expenses are allocated principally on the nanc] engineenng services. basis of cost of operations, with certain exceptions and reduc-tions which recognize the varytng degrees to which affiliated Technical Systems and Materials consists of jet engines for air-companies maintain their own corporate structures. craft, industnal and manne applications: electronic and other in addition, provision for income taxes ($958 million in 1980, high technology products and services pnmanly for aerospace $953 million in 1979, and $894 million in 1978) is allocated based applications and defense; materials (engineered plastics, sifi-on the total corporate effective tax rate, except for GECC and cones, industnal cutting matenals, faminated and insulating ma-Natural Resources, whose income taxes are calculated t:n:Is. and battenes); medical and communications ecuipment; separately, and time sharing, computing, and remote data processing. Minonty interest (521 million in 1980 and $29 million in both 1979 and 1978) is allocated to operating components having Natural Resources includes the mining of coking coal (princi-responsibdity for investments in consolidated affiliates. pally in Australia), uranium, steam coal, iron and cooper. In addi-in general, it is GE's policy to pnce intemal sales as nearly tion, it it'ciudes oil and natural gas production, ocean shipping as practicable to equivalent commercial selling pnces. (pnm?nly in support of mining operations) and land accuisition and development. Coographic segment information Revenues Onmaions FortheyearsendedoecomtNer31 Totai rever%es inte segment sa4s Externaisaresanchow. 1980 1979 1978 198r 1979 1978 1980 1979 1978 UnitedStates $20,750 $18,859 516,443 44 S 467 5 362 $20.266 S18,392 S' S,081 Far Eastinc uding Australia 1.277 1.183 1,109 355 280 242 922 903 867 Oth:rareasoftheworld 4,459 3,814 3,270 124 129 145 4,335 3.685 3.125 Eliminationofintracompany transactions (963) (876) (749) (963) f876) (749) Total $25.523 522.980 $20.073 - S - S $25.523 $22.980 $20.073 NetEarnings Assets Fortt eyearsencecoecomeer31 Aioecemeer31 1980 1979 1978 1980 1979 197d UnitedStates S 1,175 5 1,120 $ 961 513,732 512.693 511,410 Far Eastinc!uding Australia 169 174 170 1,090 842 889 Otherareasofthewor1d 181 120 104 3,808 3.207 2.827 Eliminationofintracompany tr nsactions (11) (5) (5) (119) (98) (90) Total S 1.514 $ 1.409 $ 1.230 $18.511 $16.644 515.036 Geographic segment information (including allocation of in-U.S. revenues also inc!ude royalty and licensing income from coma taxes and minonty interest in eamings of consolidated affil-unaffiliated foreign sources. ilt;s) is based on the location of the operation fumishing goods Revenues, net earnings and assets associated with foreign or sirvices. Incluced in United States revenues were export coerations are shown in the taouiations above. At December 31, sal;s to unaffiliated customers of $3,781 million in 1980. $2.772 1980 foreign oceration liabilities, minonty interest in ecuity and million in 1979. and $2.571 mi!! ion in 1978. Of such sales, $2,089 GE interest in ecuity were $2,562 million, $141 million and million in 1980 ($1.581 mi: hen in 1979 and $1.662 million in $2,195 million, respectively. Cn a comparacle basis. the 1978) were to customers in Europe. Afnca and the Mico!e East; amounts were $2.101 mdlion, $139 million and $1.809 million, and $926 million in 1980 (5741 million in 1979 and $498 million in resoect:vely, at December 31,1979; and S t.910 million, $150 1978) were to customers in the Far East including Australia. mailion and $1656 mdlion. rescectively, at December 31,1978. 7he General E!es.nc tr.estor 45

• ~

Ten yzar summary t) Sesec*ec f'.canoat csta (Douar amounts e mohans: per-snare ar,ourts o conars) 1980 1979 1978 1977 1976 Summary of operations Sales of products and services to customers $24.959 S22,461 519,654 $17,519 $15,697 Cost of goods sold 17,751 15,991 13,915 12.288 11,048 Selling, general and administrative expense 4,258 3,716 3.205 3.011 2,635 Depreciation, depletion and amortization 707 624 576 522 486 Operating costs 22.716 20.331 17.696 15.821 14.169 Operating margin 2.243 2,130 1.958 1,698 1,528 Otherincome 564 519 419 390 274 Interest and other financial charges (314) (258) (224) (199) (175) Earnings before income taxes and minenty interest 2,493 2,391 2.153 1,889 1,627 Provision forincome taxes (958) (953) (894) (773) (668) Minenty interest (21) (29) (29) (28) (28) Net eamings 5 1.514 $ 1.409 5 1.230 S 1.088 5 931 Eammgs per common share (b) S 6.65 5 6.20 $ 5.39 5 4.79 5 4.12 Dividends declared per common share (c) S 2.95 S 2.75 S 2.50 $ 2.10 5 1.70 Eamings as a percentage of sales 6.1% 6.3% 6.3% 6.2% 5.9% Eamed on average share owners' equity 19 5% 20.2 % 19.6% 19.4 % 18.9 % Dividends-General Electnc 670 5 624 S 570 477 3 333 Dividends-Utah intemational Inc. (d) S 28 Shares outstanding-average (in thousands) (e) 227,541 227,173 227,985 227,154 225,791 Share owner accounts-average 524,000 540.000 552.000 553,000 566,000 Mirket price range per share (c)(f) 63-44 55i-45 571-431 571-471 591-46 Price eamings ratio range (c) 9-7 9-7 11-8 12-10 14-11 Current assets S 9.883 5 9.384 5 8.755 5 7,865 5 6.685 Current liabilities 7.592 6.872 6.17!, 5.417 4.605 Working capital 5 2.291 S 2.512 5 2.586 S 2.448 5 2.080 Short-term borrowings 5 1,093 5 871 5 960 S 772 5 611 Long-term borrowings 1,000 947 994 1.284 1,322 Minonty interest in equity of consolidated affiliates 154 152 151 132 119 Share owners' equity 8.200 7.362 6.587 5.943 5.253 Totai capitalinvested $10.447 $ 9.332 S 8.692 5 8.131 5 7.305 Eamea on average total capital invested 17.3% 17.6% 16.3 % 15.8% 15.1% Share owners' equity per common share-year end (b) S 36.00 3 32.31 5 28.88 5 26.05 5 23.18 Total assets $18,511 S16,644 515.036 $13.697 S12,050 Property, plant and equipment additions S *,948 5 1.262 5 1,055 S 823 5 740 Employees-average wortdwide 402.000 405,000 401.000 384.000 380,000 la) Urtess scecticai!y netsc all years are acjusted to ir c*uce Utan !rter-(el ine:uces General E:ectnc cutstancarg average snares or year eno national inc.. amen became a wncify owred anate of Gereral E:ec-seares as accrocnate. pius in 1975 anc enor years. outstarcirg tnc on Decemcer 20. t 976, mrougn tre exenarge of 41.002.034 snares ::rewously reportec Oy Utah muit: coed by 1.3. Acjust-erts seares of General E:ectne come on stock for a:1cf tne cutstarcing eave teen mace for tre two for-ore Utan stocx sont eFec*ec in the snares of Utan. form of stock ciwceres :n 1973. tt) Con cutec using outstanc:rg srares as cesenceo in ncte t el. (r) Aepreserts nign anc icw marwet ::nces as reportec on New Yorx tc) *or Gereral E ectnc commo, stcan as recortec in tre years srown. Stocu Excrarge trougn Jawary 23.1976. anc as reocr'ec on tre tc) Ae ects trarsactices enor to rwgr cate. Conso catec Tape thereafter n 46 Annual Pecort 198o (

4 Other information r Quarterly dividend and stock market information 1975 1974 1973 1972 1971 o,,c.na, em, oectueo marxet once range 1980 1979 1980 1979 $14,105 $13,918 $11,945 $10,474 $9,557 First quarter 70c 6sc $57%.$44 $50+$45'. Second quarter 75 70 52 - 44 % 51 4 46". 10.210 10.092 8,445 7,381 6,809 Third ouarter 75 70 58 %- 51 % 55%- 49'.. 2,238 2.240 2,058 1,872 1,686 Fourth quarter 75 70 63 51% 52 %- 45 470 415 372 344 290 The New York Stock Exchange is the pnncipal market on *nien GE 12.918 12.747 10.875 9.597 8.785 common stock is traced and, as of Decemoer 8,1980, mere were approx. 1.187 1,171 1,070 877 772 ima+my 512.2B2 share owners of record. 174 207 203 207 177 Operations by quarter for 1980 and 1979 (187) (197) (143) (121) (102) y,,,, 1,174 1,181 1,130 963 847 a.r..n r.. mounts.n aci'arsi acaner cuan., auan, auanc (460) (458) (457) (385) (333) 1980: (26) (18) (12) (5) (4) Sales of procu::ts and 688 705 661 r/3 $ 510 services to customers $5.881 $6,197 $5.963 $6.918 Ooeratng margin 527 556 513 647 $ 3.07 $ 3.16 $ 2.97 $ 2.57 $ 2.30 Net eamings 342 403 358 411 $ 1.60 $ 1.60 $ 1.50 $ 1.40 $ 1.38 Net samings per 4.9% 5.1% 5.5% 5.5% 5.3% common snare 1.50 1.77 1.58 1.80 1979: 15.7 % 17.8% 18.4 % 17.5 % 17.2 % Sa:es of procucts and services to customers $5.082 $5.642 $5.509 $6,129 293 291 273 255 $ 250 operanng margin 47u 598 511 551 33 24 14 13 11 Net eamings 303 382 341 383 224,262 222,921 222,631 222,503 221,591 Net eamings per e mm n snare 1.33 1.69 1.50 1.68 582,000 566,000 543,000 542,000 529,000 521-321 65-30 75i-55 73-581 66i-46i Dividend Reinvestment Pian 17-10 19-9 24-17 25-20 26-18 GE snare owcers wnose Comoany stock is registered in the:r own names and whose aedresses of record are in the United States or its temtones i or possessions are eligiele to cartic:cate in the GE Dividend Peinvest-S 5.750 $ 5,334 $ 4.597 $ 4,057 $3,700 ment P'an. For ir. formation on the pian, wnte to: Share Owner Recorcs, 4.163 4.032 3.588 2.921 2.894 General E!ectnc Company, P.O. Box 208. Scnenectady, N.Y.12301. S 1.587 $ 1.302 $ 1.009 $ 1.136 $ 806 I Form 10-X and other supplementalinformation 1 l 667 656 676 453 $ 582 The financial informabon in this Report, in the coinion of management. I 1.239 1,403 1,166 1,191 1,016 suestanaany conforms wim or exceecs tne informanon recuired in tne 1 105 86 63 54 50 "10-K Reoort" sucmitted to me Secuntes and Exenange Commission. 4.617 4.172 3.774 3.420 3.106 Certain sucoiementannformation. consicered nonsuestanove. is in-cluced in that recort, however, and copies will be availacle without I I $ 6.628 s 6.31,, S 5.679 $ o_.118 $4.754 cnarge. on or aceut May 1. from;invoetor Retettons, General Electric 12.5 % 13.4% 13.7% 12.7% 12.3 % Company, Fairfleid, Connecticut 06431. $ 20.49 $ 18.65 $ 16.94 $ 15.35 $13.96 Copies of tne General E!ectnc Pension Pfan, the Summary Annual Pecorts for GE emcloyee benefit plans suciect to tne Empioyee Aeure-ment income Secunty Act of 1974 and other r E employee eenef;t plan $10.741 $10.220 $ 9,089 $ 8.051 $7,472 documents and informanon are avaitao.oy,e ting ta investor Aetatens S 588 813 735 501 $ 711 and scecifying the informaton cesired. I 380,000 409.000 392.000 373.000 366,000 l l Transfer Agents General E!ectnc Company The First Natonal Bark of Boston Secuntes 7ransfer Operation Sharenoncer Services Division 570 Lexington Avenue P C. Box 644 New York, New Yonc 10022 Boston Massacnusetts02102 The General E!ecmc investor 47

l 6 e i GENER AL $ ELECTRIC INVESTOR I Annual Report issue Gsneral E!ectric Company F.;rfield. Connecticut 06431 V T@ R:; search G E R& D expanded in 1980: Continuing to "factoryof thefuture."Theyearsawthefirst base its sales and earnings growth in targe part testsof acomputer-designedinjectionmold g on innovative technologies, G e neral Electric for plastic parts, and a developmenta! G E ro-Development spent a record $1,598 million on research and bot showed its ability to assemble scores of development activities in 1980.Thisincluded differ anttypes of electric motors. New tech-an increase of 19% f rom 1979 to $760 million in niques-some using lasers-were tested for expendituresof theCompany'sownfunds. machining tough materials at higher speeds The balance of $838 million was done under thaneverbefore. contract. primarily for the U.S. government. In energy,the Company's R&D efforts focus At the corporate Research and Develop-on clean methods for converting coalinto ef ec-ment Center, scientists are playing a key role tricity, and on ways to reduce energy con-in the "electronica revolution," producing sumption.Examplesof thelatterincludenew sm alle r. f aste r microcircuits for everything fu el-conse rving tu rbof an aircraft engines; en-f rom " intelligent" home appliances to j am-re-ergy-efficientlamps; ac adjustable-speed sistant military com mu nications systems. drives; and energy-saving appliances. During 1980, they tested an advanced ultra-R&D activities pictured below include a sonic cardiac scannerthat can provide moving unique research facility (leit) to study gasified pictures of the human heart via sound waves. coal-fueled power generation, and stulies us-Higher manuf acturing productivity will result ing interactive graphics to boost productivity from computer and robottechnologies in the bycomputer-aided design. r E._ ' ~ ' t' g tk ::v g Qi!& i \\ 19 ~y,y. g,. r ~. oi,pg$d.. fg Q.T MI g i _. _ _. _ _., _. _,, _.. __}}