ML20034H641

GE 1992 Annual Rept

ML20034H641
Person / Time
Site:	Vallecitos, Vallecitos Nuclear Center  File:GEH Hitachi icon.png
Issue date:	12/31/1992
From:	Cunningham G, Fresco P, Welch J GENERAL ELECTRIC CO.
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
NUDOCS 9303190149
Download: ML20034H641 (64)

Text

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GE Nuclear Energy

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March 15, 1993 U.S.

Nuclear Regulatory Commission Washington, D.C.

20555 Attention:

Document Control Desk

References:

1)

Docket 50-70 2)

Docket 50-73 3)

Docket 50-183 Gentlemen:

As is customary, copies of the General Electric Annual Report are forwarded to the Commission in order to provide updated General Electric corporate and financial information.

Accordingly, copies of the 1992 Annual Report are enclosed for the referenced dockets.

Sincerely, l[f G.

E.

Cunningham Senior Licensing Engineer (510) 862-4330

/ca Enclosures

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l GeneralElectric Company and consolidated affiliates (Dollar amounts in urulhons; per-share arnounts in dollars) 1992 1991 1990 Revenues -including discontinued Aerospace businesses

$62,202

$60,236

$58,414 Revenues - continuing operations 57,073 54,629 52,619 Earnings from continuing operations 4,305 3,984 3,889 Earnings from discontinued operations 420 451 414 Earnings before accounting change 4,725 4,435 4,303 Net earnings 4.725 2,636 4,303 Dividends declared 1,985 1,808 1,696 Per share Earnings from continuing operations 5.02 4.58 4.38 Earnings from cliscontinued operations 0,49 0.52 0.47 Earnings before accounting change 5.51 5.10 4.85 Net earnings 5.51 3.03 4.85 i

Dividends declared 2.32 2.08 1.92 Data for 1991 and 19'30 have been rc<lassified. when necessarv, to state separately the irsuhs of diu ontinued operations. See note 2 to the consolidated financial statements for information about dixontinued operatiom. See note 6 for infonnation about the !!"J1 chance in accounting for retiree health and bfc insurance benefits.

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l Contents l

letter to Share Owners 1

GE Innovation 6

Business Review 8

GE in the Community 19 l

Boarrl of Directors 20 l

.\\1anagement 22 l

Financial Section 25 Corporate Information 63 l

a Gover and financial pages t

W printed on reculed paper.

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I To OurShare Owners 1992 was another strong year for GE in a dillicult the last recession of the early 1980s. This level of global economic environment. There is %%eg producthity maintains the two-to-threefold im-like hard times to try out soft concepts; nothing provement we've been seeing since we started a like reality to test rhetoric.

cultural thrust called Work-Out several years ago.

We have produced our fair share - may be

• The quickening of the pace of the Company, more - of rhetoric over the recent past, dis-a staple of our rhetoric in past years, has turned cussing soft values with you in this report and into the reality of faster inventory turns across the struggling among ourselves at all levels of GE to businesses, producing $5.3 billion in cash flow distilljust what the characteristics of a winning from operations - an all-time record for GE.

company ar e, what makes work exciting and ful-

• Industrial and Power Systems, Plastics and filling rather thanjust tedious drudgery, and Medical Systems turned in double-digit earnings a

what kind ofleadership traits will gahanize and growth; and the 22 entrepreneurial businesses of inspire an organization.

GE Capital Senices continued their powerful in 1992, these soft values continued to pro-growth in leasing, credit card services, propeny duce hard numbers, and much of our rhetoric management, reinsurance, and scores of value-rolled into action.

added, "non-banking" activities, producing 18%

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• C(msolidated revenues were $62.202 billion, growth in net earnings. Kidder, Peabody had its I

up SE second consecutive year of record eamings.

• Earnings were $4.725 billion in 1992, up

• Our exports of $8.8 billion enabled us to

$290 million or 75 make a nearly 56 billion positive contribution to

• Earnings per share were $5.51, up 85 the U.S. balance of trade.

• Total cost producthity, despite the recession,

• The reality of the global marketplace as was 4 /6, three times the level achieved during our true arena was reinforced by a major shift of w.

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Chairman and Chief hecutive OfEcer John E Welch, Jr.

(center] with Vice Chairman and Executive Of5cer Paolo

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Fresco fright)and hecutive Vice President Frank P. Doyle.

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senior management and resources toward India,

• putting it in channels," " running it up the flag-l Southeast Asia, China and hiexico - the mega-pole" and, worst of all, the polite deference to the l

markets of the 21st centug and the opportunities small ideas that too often come from big offices l

of today.We continue to move the center of grmi-in big companies.

ty of GE in the direction of these high-growth Evegone in a small company knows the cus-markets.

tomers - their likes, dislikes and needs - be-

• In November,we agreed to combine our cause the customer's thumbs up-or-down means Aerospace business with that of hiartin 51arietta, the difference between a small company becom-l creating the world's number-one aerospace elec-ing a bigger company tomorrow-or no compa-tronics company, a new competitor with double ny at all.

the assets and a fraction of the overhead ofits two It comes down to something very simple:

components. When this combination is approved small companies have to face into the reality of m 1993, GE will have a one-billion-dollar invest-the market even day, and when they move, they ment in the new company, have to move with speed. Their survival is on These events and numbers were looked on fa-the line.

vorably by the market and - along with two divi-We come back again and again to that small company advantage: speed. Speed, which brings with it an urgency, an exhilaration and a focus on

Small companies... what we are trying what really matters,is a mine against bureau-relentlessly to do is cet that small-company soul-and cracy and lethargy. h is the simple ingredient that

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drives small companies, and it is the lack of speed small-company speed - inside our big-company body.

that gets big companies in trouble.

But

• big" does have its ach antages. Big allows dend increases during the year-rewarded GE us, for example, to spend billions on developing share ownen with a retum of 15%.

the new GE90 jet engine, or the next-generation Over the years we've analyzed our own Compa-gas turbine, or Positron Emission Tomography ny, with as much objecthity as we can muster, and (PET) diagnostic imaging machines - products we've studied and visited hundreds of companies that sometimes take years ofinvestment before around the globe - either in acquisition efforts they begin producing returns.

orjust toleam from them. In doing so,we find Sire gives us staying power through market cy-that while we like some of t e attributes of big cles in big, promising businesses. It permitted us 5

companies-particularly their scale and market-to invest heavily in Power Systems during several place reach -it is small companies that create down years in the 1980s, which allowed the busi-excitement while big companies, too often,just ness to emerge healthy and ready te capitalire on impress.

the global boom now in progress. Sire will allow What do we like about small companies?

continued heavy investment in new products as hiost small companies are uncluttered, simple, GE Aircraft Engines goes through an early 1990s informal. They thrive on passion and ridicule bu-down-cycle, and will permit that business to main-reaucracy. Small companies grow on good ideas tain globalleadership throughout that cycle and

- regardless of their source. They need every-into the 21st centug.

one, involve everyone, and reward or remove Sire gives us the resources to invest over a half-people based on their contribution to winning.

billion dollars a year on education: cultivating, at Small companies dream big dreams and set the every level in the organir.ation, the human capital bar high -increments and fractions don't inter-we must have to win.

est them.

Offshore," big" pennits us to form partner-We love the way small companies communi-ships with the best of the large companies, and cate: with simple, straightforward, passionate large countries, and to invest for the long term in argument rather thanjargon-filled memos, nations such as India, hiexico and the emerging 2

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' Boundarylessness... is a behavior definer, l

a way of getting people outside of their organizational boxes l

and offices and working together, faster.

day. "Boundarylessness'is a behat ior definer, a cc:rrML 4.g_. _ _

• p~we way of getting people outside of their organiza-m_

tional boxes and offices and working together, Q

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faster. It also gets us closer to our customers, our

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y upon which we depend.

This behavior definer led us to a process called Work-Out that we've been using for four years now to capture good ideas and run with them -

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the carth. Work-Out has been the vehicle that has allowed us to act on a series ofinnovative ways of

.m removing barriers - always with an eye to becom-ing faster-becoming better.

These boundaryless initiatives are changing the way our businesses operate. For example:

• Quich Response. This is a cycle-time reduc-tion technique we adapted from our Canadian l Work-Out sessions like this one led bylloyd Trotter.

".n appliance company

' president and CEO of GE Electrical Distribution and m hew Zealand, u-hich got a from winnknm-l Control, are helping GE eliminate boundaries and where. Quick Response erases most of the barri-improve productivity. Shown (left to right) are George ers between the functions of our businesses -

, Zippel, Jim Yuan, Lloyd Trotter, Claire Schroeder, Sam manufacttuing, finance, etc. - and the custom-

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Eskridge, MichaelJack, Chris Fuseher and Ellie Murphy.

ers, and has taken GE Appliances from an 18-week order-to-delise:T cycle to a Sh-week indusuial power s of South Asia - w hile still cycle at the present - on the way to thrre days.

putting billions of dollars into the research and Quick Response has reduced average inventory deselopment of products that will be in demand in GE Appliances 50%, or almost $400 million, in tomorrow's markets.

and will allow it to break through the 10-turn bar-But size is no longer the trump card it once rier in 1993 - almost double the rate of 1989, was in today's brutally competitive world market-

• Co-location. Co-location is the ultimate place - a marketplace that is unimpressed with boundaryless behavior and is as unsophisticated logos and sales numbers but demands,instead, as can be: We tear all the walls down and put value and performance.

teams from all functions together in one room to What we are trying relentlessly to do is get that bring new products to life. One room, one coffee-small-company soul-and small-c ompany speed pot, one team, one shared mission.

- inside our big-company body.

The standard lament of manufacturing-But how do you get that speed in a 560 billion "What idiot designed this thing?"-is no longer l

company with 230,000 employ ees competing all heard because the product is now designed trith I

over the carth? Before you begin to accelerate an manufacturing, with mar keting, with suppliers, organization, you have to take the brakes off. The and often with the customers themselves.

brakes in our case are the boundaries, the barri-GE Medical Systems is using this boundaryless ers, the fiefdoms, the remnants of a bureaucracy technique to design and manufacture its new ul-that slow us down.

trasound products. The Profile appliance line was l

That's what that cumbersome word

• bound-developed this way, as was the GE90 jet engine.

aryless' is all about and why we focus on it so Before long it will be the way GE develops errry-much in this letter and in every hour of our work thingit makes, and eveg service it sells.

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We are finding that once people leave their

• Reuanfs. In small companies the punish-

. j cherished offices, work as a team and share the ments and rewards of the marketplace come excitement and rewards that belong to winning quickly. If the product doesn't win, the team -

teams, they never want to go back.

doesn't eat. If the product wins big, the rewards

. Quick Market Intelligence. Too many people are substantial-often the stuff oflegend.

in big companies come through the gate each Stock options are the most powerful tool we

. i morning to serve the internal bureaucracy. Cus-have in the Company to approximate small-l tomers-if they are thought of at all-are some

-company incentne systems. In the early 1980s,

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vague abstraction. QMI changes all that. It is a only 400 of our senior executives held them.

j process that gives every salesperson direct access.

We've also broken that barrier, and today, more.

every Friday, to the key managers and the CEO than 13,000 of our top performen, from foremen of the business, to lay out customer problems and to secretaries to newly hired engineers and sales-needs.The product of the meeting is not deep or people, hold stock options.These options are a strategic in nature, but action - a response to key part of the linkage we are trying to forge be-the customer right away. The QMI routine turns tween what a penon does on thejob every day and winning in the marketplace - and between that winning and the rewards that come with it -

-rds felt in the soul as well as the wallet.

j Oufck Market Intelligence... That OW

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d rhythm - that weeklypulsing of customer needs - will l

around this Company. Every dar people from fi-become the rhythm of gem. the years to come and one of

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the key drivers of our top-line growth.

their functional uniforms and teaming up to meet common challenges. The face of the cus-the face of everyone in the organization toward tomers, and the customers' needs, have become t

that marketplace and, by doing so, makes the bu-as real, as vivid and as urgent to everyone in the l

iraucracy stand out for what it really is: silly,irrel-

- organization as they are to the salespeople who evant and even malevolent in its interference in meet with them.

the process of serving customers.

' Nowhere can we quantify the results of bound-Quick Afarket Intelligence is our term for the aryless behavior better than in pmductit'ity and j

l magnificent boundary-busting technique pio-'

globali:ation.

neered by Wal-Mart that allows the entire Compa-The removal of functional barriers within our si es o t e cust m r a d o t n e in h ir st pp rs nd storne

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u ed most real time. The rhythm of the Wal-Mart intel-producthity figures over the last five years double l

ligence-action cycle encourages experimentation, or triple those of the early 1980s.

l because whatever doesn't work is never in place in globalization, the overcoming of geograph-i for more than a week.

ic and cultural barriers has given us,over the past QMI has rooted quickly in long-cycle and five years, a double-digit average annual growth short-cycle businesses as divene as Medical Sys-rate in revenues outside the United States.

tems, Lighting, Plastics and Power Systems, and it.

. Of course, we haven't rid onnelves of all our is dramatically increasing the speed of those busi-turf battles and barriers; and, sure, some bound-nesses. That QM1 rhythm - that weekly pulsing aries remain. And there is one boundary that we of customer needs - will become the rhythm of continue to maintain, strengthen and make cicar -

l GEin the years to come and one of the key dri-to everyone-the boundary that says that no.

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ven of our top-line growth. The secret ofWal- -

matter how hard we compete-here and around i

Mart is that it keeps its small-company speed and the world _- not one foot must ever step outside i {

- behavior as it grows bigger. QM1 is a chance for the line of absolute integrity.

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us to get bigger-by acting smaller.

But all the other boundaries are fair game, -

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t Pcrochidism... mot Invented nere -is dead at GE-it has been for a while. We don t claim to be the global fountainhead of management thought, but we may be the world's thirstiest pursuer of big ideas - from whatever their source - and we're not shy about adopting and adapting them, and the biggest has alreadyfallen: the one be-old government bureaucrats and "fix the econo-tween us and the world full of good ideas we my"? Or is the reality that slow growth is largely a didn't happen to come up with. Parochialism -

mindset that is unknown in start-up businesses "Not Imented llere'-is dead at GE-it has and must be unac ceptable in big ones?

been for a while. We don't claim to be the global

• Above all, do I recognize the pace of change, fountainhead of management thought, but we which is making obsolete and wrong today what may be the world's thirstiest pursuer of big ideas was contemporan and right yesterday? Do I wel-

- from w hatever their source - and we're not come change for the opportunity it always brings shy about adopting and adapting them. Whether

- or am I frightened and paralyzed by it?

it's QMI from WalMan, or co-location from When most of us look at our careers, if we are garage shops, or the " Quick Response" tec hnique honest with ourselves about decisions weie from New Zealand, or some blinding insight made, changes we've brought about, we have to from some formerb quiet machine operator at a acknowledge that there was much wishing and Work-Out session -ifit looks like it might make hoping and temporizing that has slowed us in us faster-we try it. And ifit works, we spread it coming to grips with reality. I ut beyond that, our across even business in this Company-fast.

biggest regrets - sometimes our most bitter ones As we look, eagerly, toward '93 and beyond,

- are often that onc e we defined reality, and we ask every person in every business to ask the brought it into focus-we didn't act fast enough, tough questions leaders must ask themselves boldly enough.

even dav-That's what the best companies do best, and

• Am I facing reality? Am I seeing the situation our challenge at GE for 33 and beyond is clear the way it really is - or the way I wish, or hope, it

- to ignite this big Company with passion, were? Am I painting flattering self-portraits, or hunger, appetite for change, customer focus, looking honestlyin that cold mirror? And when and, above all, the speed to see trality more I have grasped the reality, then comes the big, clearly and to act on itfaster.

defining question: Am I actingon it fast enough?

Translating the need for speed, for reality,into

• Do I see a competitor beating us with lower the language and practices that change peoplei prices and mutter nervously that 'he's nuts" or behavior, that encourage them to renew them-

"he's dumping"-when the real answer is: 'he's selves, to walk through that door every day as ifit got lower costs, and I better get my costs down were Monday morning on a newjob - that's now, or I'm gone'?

what leadership in this Company is all about. No

• Do I see other competitors racing one new matter how many ideas we try, it all comes back to product after another into the marketplace and people - their ideas, their mothation, their pas-take comfort in deducing they're ' spending too sion to win.

much on product development"? Or do I focus Our unending drive to build a boundaryless, on what they are really doing -increasing the high-spirited Company is moving us faster every speed of their product development evcle, and day in the direction of what we want passionately beating me to the marketplace?

to become - the world's most competitive global

• Do I wait in hope of some dozing manager enterprise.

suddenly springing into action when he hasn't Thanks for your support.

moved in 10 years? Do I 'wish" that the autocrat who sits on people all morning and puts baniers benveen them all afternoon will change his spots?

j Or is the reahty that I lack the courage to make y

the tough personnel calls that I know I have t pn rMen.jr.

Paa, rre make if we're going to win?

Chairman of the Boani and Yire Chairman of the Board

• Do I shrug in resignation at slow growth, and Chief Executive ofm er and Executive orm er wait for new government bureaucrats to replace rebruary 12, IM6 5

GEInnovation GE's new culture is unleashing

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an outpouring ofideas. Individuals

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few tributions in broader areas than

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employee finding a simple way to Q, ) -

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The 9F the world's mostpowerfulgas turbine, continues GE's record ofinnovation in power generation technology. Its higher Ering temperature means greater fucief6ciency.

! Andits recordoutput, etSciency andrelichility have made the 9Fa main ingredientin l

l advancedcombined-cyclepowerplants.

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h Dr. William E. Engeler, a physicist, has be-come the newest member of the Research &

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Development Center's exclusive l00pstent club, putting him in the company of metal-largist turned medicalimaging researcher

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Dr Harvey Cline {126 patents)and diamond f

expert Dr. Thomas Anthony (120 patents).

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Dr. Engeler specializes in ultrasonic imag-mg andsolidstate electrorncs.

E De Angelika Clark (left)and Dr Eileen Walsh, shown here in the Valox resin develop.

snent lab, developed Heavy Valax, a GE Plastics materialthat is being used in new kitchen countertops recently introduced by Formica Corporation under the Nuvel trade ~

mark. Dr. Clark created Heavy Valax sheet and Dt Walsh created Heavy Valox resin.

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l GE Aircraft Engines has developed a low-emission, dual-annular combustor,

a key elementin what soon willbe the cleanest burningjet engines. Based

on technology from NASKs Energy Efficient Engine program, the new com-bustor design has been incorporatedinto the super-high thrust GE90, which

' willenter service with British Airways in 1995, andinto the CTM56-5B.

l which willenterservice with Swissairand Austrian Airlines the same year.

Here, Roger DeBruler of GEprepares a combustor for componerrt testing.

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, Clarence Garver, an employee in the loco-

'L yiif l motive business, found a simple solution to a

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Q jf l customer problem, thereby a voiding a costly f";M :T l redesign. His ides. called a ' switching step

% i l observation system,"was to use a smallfor-h%

. ward-facing mirror in conjunction with the f

Z l standardside-viewmirrortogivelocomotive g

e aam i operators a clear view of the trent of the 10-y comotive. A patent is pending for the idea.

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MichaelBritton, Maria Trinidadand Peter Crandall(left to right) are members of a co-located GE Medical Sptems team that developed a new generation of Positron Emissior, Tomography (PET) scanner. introduced by GE in 1992, the Advance"imager above is designed for image quality, patient throughput and esse of use. Physicians

} use PETimages to evaluate a variety ofdiseases, including cancerandepilepsy.

7

Aerospace The combination with Martin Marietta will create a dynamic new company with significant economies of scale.

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r-1992 was a truly memorable year for GE Aero-b space as GE announced, in November, an agree-ment to combine this business with 51artin Stari-etta, which will make us part of one of the world's largest aerospace electronics concerns.

During the year, we produced relatively strong earnings in the face of a declining defense mar-

,2 ket. Even as demand for defense products de-Eugene F Marov creases, we are winning new business through 4

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innovative bids, aggressive cost-reduction and E-GEAerospace stronger focus on customer needs. Orders and iesenues for the entire year declined to $-1.1 bil-lion and D 0 billion, respectively, but our win rate on major programs impros ed significantly through the third and fourth quarters.

Important wins in 1992 included a research GE Aerospace designed and built this Mars 0bserver and development contract from the U.S. Marine spacecraft. which was launched on a Martin Marietta man l#tamh vehicle fora Nrendenm whh Maa Corps for its Light Armored Vehicle Air Defense program and a contract from the U.S. Anny to produce a man-portable terminal for communi-contract to supply a direct-broadcast satellite.

cating through the Department of Defense's After the successful launch ofINTELSAT-R, a MILSTAR satellite system. The Marine Corps also GE-built communications satellite operated by selected GE Aerospace to modify and upgrade its the International Telecommunications Satellite solid state radars.

Organization, we were awarded a contract for two As prime contractor for the U.S. Navy's Aegis INTELSAT VIII satellites for video and broadcast air defense system, we shipped the 27th and final sersites. Another 1992 highlight was the success-system for the Aegis cruiser program. Work con-ful launch of the Mars Observer spacecraf t, built tinued on the Aegis destroyer program with nine by GE for NASA. It will study Martian geology systems delivered and 13 in backlog at year end.

and climate and will map the planet's surface.

We also have contracts to daiver two systems to Design-to<ost/ price-to-win techniques and the U.S. government for use byJapan's maritime continued reduction of total costs were impor-self-defense force. A system for the firstJapanese tant factors in several wins. Process improvement Aegis ship aheady has been delivered. We also and engineering productivity initiatives contrib-won a contract to produce 18 Aegis directors.

uted to 6.5% productivity across our business.

Other significant 1992 developments included lo reduce costs and enhance competitiveness, contracts from NASA and the Department of we eliminated three million square feet of floor See notef on Defense to design, build, launch and operate the space, reduced our work force by 5,300 positions P89,8 Landsat 7 Earth Observation Satellite and from and concentrated more of our manufacturing in-0 tion aboutthe Echostar Satellite Corp. to provide a satellite for vestment in two advanced electronics facilities.

transaction direct-to-home television programming.

The combination with Martin Marietta is with Martin We also strengthened our global presence expected to close in the first half of 1993. This Manena.

with key wins in international defense and space transaction will create a dynamic new company marxets, including a contract fo; flight control with leading s esearch and development skills, sig-systems to the govemment ofIndia and another nificant economics of scale, and enhanced capa-for five solid state radars to Germany. Asia Satel-bility to compete successfully in the global aero-lite Telecommunications selected us to build its space and defense marketplace. GE will retain a next-generatior communications satellite, and substantial equiry interest in the new company.

NilR (Japan Broadcasting Corp.) awarded us a 8

AircraftEngines We *are addressing the current market situation with a continued emphasis on customer satisfaction.

1992 was a tough y ear for the airline industry and CFN1 International, our 50/50 joint company b

worldwide, leading to a significant decline in new with SNEC51A of France, have manufactmed aircraft orders as well as cancellations and defer-more than 48% of the new commercial ainTaft n

rals of previous orders. Additionally, airlines have engines delivered for aircraft of 100 or more pas-reduced engine spare parts purt hases, which, sengers, thus ensuring an excellent spare parts

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when coupled with a continued downturn in pro-hase for the future. While new firm orders for curement by the U.S. Department of Defense, commercial aircraf t fell by 35% worldwide in resuhed in a reduction of GE Aircraft Engines 1992, GE and CFN11 still captured the greatest snanN Rowe revenues and earnings from 1991 levels.

share of the market, with 50% of the orders

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We are addressing this mar ket situation with a placed. GE experienced a large measure of suc-stocrer Engnes continued emphasis on customer satisfaction cess in military competitions, with major wins in through speed and quality. All efforts are focused Finland, Canada and Turkey. 51memer, the U.S.

on closer contact with our customers for greater Navy awarded GE a $741 million development responsiveness. We have concentrated our re-contract for the F414 engine to power its planned sources on shrinking the order-to-delivery cycle, F/A-18 E/F Hornet aiirraft.

which has resuhed in significant improvement in We also are well positioned with a full range of inventory turns. In addition, we are consolidating products for current and future applications. In our manufacturing operations and improsing 1992, the core of the GE90 made its initial nm; processes to enhance efliciencies and continue performance was as predicted; and we will test ieducing costs. As a result, we are positioning the first complete engine in 1993. The anticipai-ourselves well to assure the flexibility of opera-ed environmental leader in noise and emissions tion needed as market demands continue to control for the Boeing 777, the GE90 is the resuh change in the fumre.

of a boundarviess efIort among our engineering, Oser the past four years, GE Aircraf Engines manufacturing, marketing and sourcing people, along with our supp!!ers and revenue sharing 1

participants: SNECNIA, IHI and FiatAvio. Current GE90 customers are British Airways, Lauda Air, International lease Finance Corp. and Eurolair.

The CF5156-5C completed its flight c es tifica-tion on the Airbus A340 prior to the aircraft's first delivery in February 1993.

During 1992, we settled civil and criminal charges relating to U.S. military aid funds that were improperly diverted at the direction of a high-ranking Israeli Air Force general and a GE Aircrafi Engines marketing manager, who was subsequently discharged. This incident was used in GE Aircraft Engines-and across the Compa-ny-as a sharp reminder that integrity is at the foundation of the Company and must never be compromised.

GE Aircraf t Engines, along with our revenue-sharing program participants and suppliers, is continuing to wor k actively with our customers to anticipate their needs and add value to their VirgilLovett of GE Aircraft Engines inspects a CF6-80C2 overall operations. At the same time,we are con-high-bypass turbofan, the world's best-selling engine for tinuousiy improving our cost structute to main-today's long-range, widebody aircraft.

tain our competitiveness in this industry.

9

nu--

l Appliances l

Y Our vision is to become one tearn - better and

~Blaig,g e

5 g;;;

{ Q faster than anybody else in the world.

, i amm

, M.uy'

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In a highly competitive industry, GE Appliances ended 1992 with improved results. While oper-

.g i

,7 [ 1 ating profit was down slightly due to cost / price L;

L/[gL' pressures and significant investment in new prod-L ucts and senices, our revenues, net earnings and y

productivity increased. Concurrently, we devoted more resources to the development of a strategy V

' b-designed to enhance profitability and growth.

9

./, SchartiStonesifer We'r e changing our internal processes, with y#

gI,'c[ #"[e^r.*#

the ultimate goal being increased producthity p

GEApphances and improved performance. These process changes are allowing us to react with gr cater speed to marketplace demands. Through Quick Response, we've been able to reduce inventory dramatically while improving product availability.

Another proc ess, Quick Slarket Intelligence, is Partof the newProfile lineofstylish high-quality BPP ancesfronsGE,thisside-by-siderefrigeratorisa li designed to gather real-time marketplace infor-genuine h# whh Mnran spaceWnedor design mation and funnelit back through the business to drive sales and marketing decisions and bring us closer to our customers. We've also enhanced changing the way we work together as people.

GE Consumer Senice by offering consumers in Underlying all of these programs is our belief selected markets the convenience of evening and that soft issues drive hard results.Through the Saturday senice as well as a "same day / next day

• Work-Out process, we're changing the culture at senice guanmtee.

GE Appliances, knocking down barriers between Another element of our strategy is our new functions and creating a boundanless organiza-supplier initiative program. Through this initia-tion in which all employees are valued for their rive, we're challenging our suppliers to generate contribution to the business. In 1992, we put more productivity in their fac tories, as we are added emphasis on culture change, focusing on doing in ours. By offering engineering assistance cultural diversity and leadership development.

and planning support to help them reach their To complement these initiatives and further goals, we're working to create a win-win situation enhance gr owth, we're preparing our employees for both GE and our suppliers.

to operate in an increasingly global business emi-New Product Introduction, a pr oc ess imprm e-ronment. To date, our globalization effort has re-ment cHort that began in 1991, is resulting in de-suhed in numerous manufacturing and distribu-creased cycle time in the design, manufacturing tionjoint ventures around the world. These and marketing of our products.We developed alliances serve to augment profitability and our more than 300 new product models for intro-strong export sales network. We aie in continual duction in 1992 and 1993, including our new pursuit of new opportunities in high-growth glob-Profile" line of applianc es aimed at the kitchen al mar kets and hope to consummate additional remodeling segment. Other strong introductions alliances in the coming year.

wer e new electric range models with "lif t-tops" for Driven by our vision to become one team -

easy cleaning and the latest in the 31onognun@

better and faster than anybody else in the world line of premium appliances: refrigerators with

-w(- are positioned for future growth and en-fhrsh" panels that virtually disappear into sus-hanced profitability through qui (Ler, more flexi-rounding cabinetry.

ble proc esses; mar ket-chiven new products: an Stany of these process improvements and new open, boundaniess business culture; and strong, product des elopments, which are vital to our fu-growing alliances in the global marketplace.

ture growth, could not have been made without 10

CapitalServices Our 22 niche businesses fill customer needs for higher value in these competitive times.

c L_

3 m

.1 GE Capital Senices (formerly GE Financial Sen-ices) experienced another year of strong earn-f ~

ings growth while expanding our reach to meet the global opportunities of the 1990s.

Earnings for 1992 rose o $1.5 billion, an 18%

Introducedin 1994 the GERewards AfasterCard increase over the prior year, primarily as a result offers a rariety of high-ralue rebates andsarings

'8 #8"#"*8##'

of portfolio growth, imprm ed financing spreads J*

and sharply improved results at Kidder, Peabody.

sarrc wendt We continued to expand our assets with acquisi-nies through restructurings and reorganizations,

~

$,7,Yr7[e'Ec,*"

tions totaling nearly $5 billion, and by helping the Resolution Trust Corporation Generalsectric Our focus on value, senice and productivity, dispose of properties from failed savings and Captalservices, Inc.

combined with unsurpassed capital strength, loans while designating more than 2,500 units for offers customers the advantages of dealing with a low-and moderate-income family housing, we large company, while our 22 highly focused niche have become recognized as a sophisticated partic-businesses provide the access, flexibility and re-ipant in U.S. capital market activiues.

sponsiveness of a small business.

Equipment management accounted for 160' of c

These 22 niche businesses provide senices in our net earnings. As owners, operators or man-five broad areas:

agers of 620,000 cars and, n,,,3,7,jc,,

Specialtyinsurance represented 33% of GE Capi-vans,140,000 railcars,

! sailcarservices tal Senices' net earnings in 1992. Through rein-60,000 over-the-road

• Polaris Aircraft

• Genster Container surance, private mortgage

,g,pg,,,,,g,;,,,,,,c, trailers, more dnan 500

,7,,,,,,,,,,,,,,,,,,,,,

insurance and municipal Fmanciat suaranrr commercialaircraf and roortriel

1. "S"'""#'

830,000 ocean-going

• ""d"'"r sp8c8 bond insurance, we pro-i vide $135 bilh.on of added l. Mortgageinsurance

• ComputerServices containers, we are a

, pensA, Truck teasing insurance coverage worldwide, make it possible leader in meeting our for close to one million moderate-income fami-customers' transportation needs.

lies to own their own homes, and support the fi-Afid-market financing was 14% of our net earn-nancing ofinfrastnicture improvements from air-ings. Providing flexible financing products direct-ports to water treatment plants.

Iv to 23,000 customers

• commerciairguipment Consumer services made up 20% of our net earn-while ofTering complete

. ve)dorr nacintservices ings. Tlu ough direct distiibutors such as retail-sales support financing

. stcen, wait ers, auto dealers and mort-

, Auto rinancm1 service, to e ompanies such as computer teasing gage originators, we bring

. setailer rmancini Kodak, Abbott Labs and Du Pont has made GE good things to the lives of

, ["'"

'g, Capital Senices a preferred name in the funding 61 million private-label of equipment used in all modes ofindustn.

credit card holders on two continents, m er Internationalh, we've extended our high-value 400,000 auto owners and 257,000 home owners-products to other parts of the globe through ac-In partnership with 27 major retailers and senice quisitions orjoint ventures. Our partners indude providers such as Toys "R" Us, Kmart and hiacy's, BBV, Spain's second largest bank; United hier-we introduced the GE Rewants 51asterCard.

chant Finance, one of Hong Kong's leading Specializcd financing, w hic h includes secmities installment finance companies; the financial broker-dealer activities, was 17% of nei carnings.

senices ann of 51alaysia's United hiotor Wmks:

By financing enough pow.

. ridder, rembody and the leasing, factoring and warehousing sub-

. Tran po,t and er plants to ilhuninate the sidiaries of hicxico's Serfin Financial Group.

city of New York, state of commerciarsenirstere For the future, we're positioned to capitali7e in Wisconsin or nation of

• C8'F"e rmance s'""P U.S. and global markets with a proven financial Thailand, by becoming the premier issuer of and business senices strategs - helping our cus-mortgage-backed securities, by guiding < ompa-tomers sunced.

11

IndustrialandPowerSystems Clear technology leadership across our inajor product lines is driving our success in an expanding global market.

GE Indusuial and Po,ver Systems delivered a fuel backlog in 1992 with major new orders from strong earnings increase on a ccord revenues of Philadelphia Electric and Illinois Power, while

~h nearly $6.4 billion in 1992, led by our power gen-GE lhive Systems received large orders from the A

eration business, which captured the leading People's Republic of China and hiexico. In inms-share in an expanding global market and re-mission and distribution, U.S. utilities showed ceived several breakthrough orders from Emope, continued preference for GE technology in two Southeast Asia, the People's Republic of China segments where we maintained strong LAS. mar-and Mexico.

Let leadership posidons: series compensation sys-David C Genever-Watling C] ear technology leadership across our major tems and amorphous transformers.1992 also saw b,'$'pNc#I"'

product lines drove the 1992 or ders success, with the first commercial demonstration, at Mississippi GElndustrial GE's T' technology gas turbine designs breaking Power and Light, of the UCnet" system, a new and Power Systems world records for in-senice output and combined-remote electronic meteting system co<leveloped cycle efliciency. A major highlight for T' technol-with Ericsson/GE Mobile Radio.

ogy is Korea Electric Power's 2,000-megawatt in 1992, we continued an aggressive program Scoinchon combined-cycle plant, which went into of strengthening our global reach by expanding commercial senice in 1992 and is curr ently the our Asia / Pacific operations to focus on the most efficient power plant in the world.

high-growth opportunities present in both the Several other businesses saw technologr-driven People's Republic of China and 'litiwan. In addi-successes in 1992. In steam turbine, recent im-tion, we increased our European presence by orovements in efficiency, combined with our redeploying resources to high-growth regions number-one rating among global competition and by appointing a regional executive and estab-for U.S.-based in-senice reliability, were factors in lishing strong local operations.

our r etaining our leading global market share.

We also expanded our network of partners GE Nuclear Energy maintained its strong reload during 1992, emerging as a leading global player in hydro-turbine technology through two new al-liances in Austria. We strengthened our coverage m-e.-

, ~

/

in Germany through the addition of a new steam turbine business associate, and our presence in l

)

Japan has been enhanced through the expansion

}

of existing agreements with Ilitachi and 'Ibshiba.

g.

Going fbrward, our power generation business f.

is well positioned to capitalize on a growing mar-ket. A progntm to increase manufacturing capaci-

,y ty for gas turbines will be c ompleted in 1993, and we are realizing significant reductions in produc-tion cycle times for both new units and parts.

Finally, as 1992 closed, GE Power Generation receis ed certification to the ISO 9000 series of international quality system standards, both a recognition that our business has a strong foun-dation on which to build a quality management system as well as a major step toward our goal of building a culture of high involvement and con-tinuous improvement across the business.

Equipped with eight GE 7Fgas turbines in combined-cycle mode, the 2000-megawatt Seoinchon plant near Seoul, Korea, is the world's most efficient powerplant.

12

Lightm.g We are rapidly expanding our presence in the world's most populated regions.

3-1992 highlighted continuous change for GE growing $2 billionJapanese lighting mar ket.

Lighting: rapid expansion of our presence in the Further accelerating this international sales world's most populated regions; exciting new momentum, we expanded our distribution 7

products that imprme the quality oflight as well in Mexico New Zealand, Korea, Singapore and as the world's emironment through energy effi-Taiwan.

e ciencies; new technologies and processes for Panicipation in India's $200 million lamp mar-manufactming; and innovative customer senice ket was enhanced with the creation of GE Apar programs.

Lighting Private Ltd. Thisjoint s enture will com-John D. Opie The year also was a period of consolidation as bine Apar's existing incandescent, f!uoresc ent E

0 we brought together our strategically important and high intensity discharge lamp manufacturing GF Lighrms Tungsram, Thorn and GE Lighting European in-plants and 14 sales offices with GE's technologv terests toward taking a lead role in Europe.

skills and full product line to sen'e India's grow-In the face of a weak worldwide economy and ing consumer and commercial markets.

increasing price pressur e, GE Lighting gr ew sales, While implementing this global expansion, we principally through global expansion, and gener-continued our emphasis on costs and factorv efli-ated modestly imprmed earnings.

ciencies, generating 8% total cost productivity.

Ajoint venture was established inJapan, com-This ongoing attention to productivity-a busi-l bining the-technology strengths of GE Lighting ness-wide mindset -was achieved principally l

and liitachi with Hitachi's extensiveJapanese through program imestments and the involve-distribution network. The 11itachi GE Lighting ment, through War k-Out, of multifunctional Ltd. partnership will allow us to consolidate teams in all areas and locations of the business.

ourJapanese sales and distribution into an organ-These

• Speed of L.ight employee empowerment ization designed to market, sell and distribute programs brought significant gains in cvch-time both companies' lighting products in the rapidly ieductions to both manufacturing processes and new product development.

--men., %y p

We also continued our emphasis on customer

,a

/1 semcc, rapidly increasing our use of electronic

" '" "mumma-data interchange programs beneficial to both GE

~'

Lighting and our customers.These programs provide a paperless exchange of business infor-

1. '.4 mation, allowing GE Lighting to maintain instant 7

,,,,,gimmat

}

communications with our customers to meet g,.--

j their vaning needs.

,,wamimuseumuJJ" q

The ability of our business to sen e a rapidly

,,, 3,sr g M changing man ketplace was enhanced by in-g creased investments that generated many new 7p.

products during 1992.They included key energy-efficient additions, such as compact fluorescents, M

T8 fluorescents, Halogen-IR"' spotlights and floodlights, and Compact Directional spotlights.

g These new products are designed to increase 7)k' revenue in the future and help ensure that GE

+

Lighting continues to be the leading lamp manu-facturer in the world.

a

_m Linda Blair af GE lighting inspects T8 energy-eflicient fluorescent lamps made in the Bucyrus, Ohio, lamp plant, the world' largestproducerof!!uorescentlamps.

s 13

MedicalSystems Through value innovation, we offer our customers both clinical and economic performance.

GE Medical Systems posted recortl revenues new offerings, such as enhanced training pro-and earnings despite slow growth in the medical grams and a broader range of financial senices.

1. /

equipment mar ketplace. Though political and Global expansion included establishing a di-(

economic uncertainties constrained U.S. and rect sales and senice organization in Mexico and European resuhs, strong contributkms from a newjoint venture in Argentina. In Asia, our Asian and Latin American business operations joint ventures inJapan, India. South Korea and helped us maintain our leading share position in China continued to generate positive results.

diagnostic imaging equipment.

Value innovation, our strategy of prosiding John M &ani in the United States, Europe andJapan, pres-the latest innovations at all price levels, allows our g$'[.$'g"[,^,l"#

sures on budgets are for cing health care prmid-customers to benefit from clinical performance GE Medica /Srstems ers to control costs more closely, thus sloking and economic value. The GE Continuum pro-medical equipment expenditures, restraining the gram, for example, gives current and future cus-spread of new technologies and amplifying de-tomers an equipment upgrade path to maintain mands for improved productisity. But in the ex-the latest performance standards at low cost.

panding economics of Asia and Latin America, Our value innovation strategt also is esident in health care spending is growing strongly.

our unique Insite senice capability, which al-In this emironment, GE's priorities are faster lows GE engineers to diagnose and, in many cas-customer responsiveness, global expansion, value es, repair system problems over the telephone.

innovation and greater competitiveness through Repair times can be teduced dramatically.

productivity and people. Customer responsh e-Value innovation boosts GE competitiveness by ness is the first priority. Our customer satisfaction c: eating a family of products covering key market process of detailed survers combined with a fo-segments. In computed tomography, new Sytec" cused customer satisfaction team has produced 6000/8000 slip-ring systems provide cost-effective growing satisfaction levels and helped identifv ahematives to our premium-perfortnance CT HiSpeed Advantage" system. Similatly, new q

Vectra" mid-field magnetic resonance scanners deliver GE technology and performance in a

,q.

g high-udue pac kage to complement the premium j

y Signa

• family.

m i

d GE's clinical adumces also reflect the benefits 4

of value innovation. For example, the new Senographe DMR mammogmphy system offers N

dramatic diagnostic improvements and higher levels of producthity.

p' ~

continued gains in productivity, speed and glob-Our competitiveness also was strengthened by alization. A new global process for logistics will eliminate unnecessary stoc king points and associ-s ated inventories. In the field, decision making W-g py was acc clerated by the creation oflocal customer

• w teams - sales and senice professionals empow-bEEEI cred to support customer needs locally.

3 Through the dual thrusts of growth and com-

~

penoveness, GE Medical Systems will continue to

.r/Ad jn pursue our goal of cost-effective health care for GEis the leading supplier of advanced imaging equip-patients umhlwide.

merrt to hospitals and clinics worldwide, such as this CTPace Plus"systemin Mexico City.

14 l

NBC Our new programs are targeted at the younger audiences favored by advertisers.

The National Broadcasting Company's 1992 rev-enues were up over 1991. However, continued weakness in the advertising marketplace and the impact of the Summer Olympic Games negatively py affected 1992 results.

~

p[

Earnings did increase in the Stations division, L

f

- j which posted improvements in five of NBC's six owned and operated TV stations (sening the Robert C. Wnght major markets of NewYork, Washington, Los

((cM*$c#*/

Angeles, Denver, Miami and Chicago). Earnings Nationatsroadcastma also improved in NBC's Cable opemtions, which C**""'"'

achieved their first full year of profitability.

Despite these successes, NBC's 1992 earnings fell short of 1991, a year that included the signifi-cant gain from the sale of our interest in RCA Columbia Home Video.

NBC' coverage of the NBA featuring sportscasters Mike s

After several rears as America's number-one Fratello (lettl and Marv Albert has continued to draw in-

-network, NBC ended the year in the number-

[ ueased audiences di ring de past dree yeaa three position in overall household ratings. We replaced several of our longtime, high-cost major achievement for NBC Sports, with its prime-time shows with new programs targeted at broadcast coverage recei ing wide critical and the younger audiences favored by adsertisers.

popular acclaim and generating enhanced view-This move enabled NBC to mitigate the decline ership for the network overall in key demographic groups normally associated Our rights partnenhip with the National Bas-with diminished household ratings. We also re-ketball Association proved highly successful, gen-ceived more Emmy nominations than any other crating income within a poor market for sports network in 1992, winning 30 for prime-time, programming. In this regard, an additional write-news, spons and dartime programming.

down was recognized for NBC's future NFL foot-NBC News improved its operating results sig-ball rights commitments due to this weakened nificantly in 1992 and expects continued growth sales emironment.

in 1993. Our news programming has increased Our three-year-old Cable and Business Devel-from 19 hours2.199074e-4 days <br />0.00528 hours <br />3.141534e-5 weeks <br />7.2295e-6 months <br /> each week in 1988 to more than opment division achieved profitability in 1992,

'TO nours a week currently. In addition, the NBC led by the perfonnance of the wholly owned News Channel, an around-the-cloc k newsfeed CNBC, which is now fully merged with the Finan-senice for NBC's 211 affiliated stations,is now cial News Network. Other established NBC cable fully operational.

positions include equity stakes in Ans and Enter-The revitalized "Today" show experien ed the tainment, Court TV American Mmic Classics, largest year-to-year growth of all network morn-Sports Channel America and regional Sports ing news shows. increasing its household rating Channels across the L'nited States.

by more than 11% and finishieg the year only While significant growth is not expected in the one-tenth of a rating point away from first place.

advertising sales marketplac e fbr 1993, maintain-The "Today" funnat has been expanded to seven ing demogmphic ratings - together with con-days a week. In addition, NBC News launched tinued strides in cost-ef ficiency-provides an

" Dateline," a prime-time news magazine show improved earnings outlook for the coming Scar.

withJane Pauh y and Stone Phillips, which is Further improvements in the core broadcast busi-drawing the highest concentration of young ness, as well as other revenue initiatives geared to adults among its magazine-format competitors.

a rapidly changing industry, position NBC for The 1992 Summer Olvmpics represented a strong long-tenn perfonnance.

15

Plastics Productivity reached a near-record 8%

contributing to our dramatic turnaround.

i GE Plastics' earnings n ose sharply in 1992, driven We also are s'. riving to ac hieve 'Best-in Class" by near-record 8% total cost productisity, lower customer satisfaction. For example, when the rates ofinflation and interest, and much im-Norvl8 :esin team in Selki:L, N.Y., was faced with x

[#.

proved cash flow. Our high productisity was quality and production issues affccting customer achieved through increased vohune, tight cost satisfaction, a new organization was established to control and production cf ficiency gains.

iespond quickly. Results were impressive: a 20-Revenues increased only slightly as intense fold decrease in product defects, a 35% decrease competitive pressure on prices more than offset in manufacturing lead times and an effective ca-Gary L Rogers the effects ofinodestly higher overall volume.

pacity increase of more than 20%.

k'f[c$$"$[,^r Our focus on Quic k Response yielded a 30% re-Employees worldwide received total quality 6f Plastics duction in order-to-delivery times and a 10% im-training as all aspects of senice were bench-provement in inventony turns.

mar ked with customers. So far,75% of our manu-Led by strong double-digit volume increases in faciming sites have achieved certification to the four significant geographic s egions - the United ISO 9002 global quality standards; the remainder States, Southeast Asia,and the emerging markets are scheduled for 1993 certification. New prod-of China and Mexic o-we strengthened our uct introduction cycles have been halved, and worldwide leadership in engineering r esins, real-an extensive customer producthity program is izing 9% solume growth in this key family of estimated to have saved customers more than products despite a soft U.S. economy, a iccession

$20 million - as measured by them.

in Europe and intense competitive pressures.

Polymerland, our w holly owned resin distribu-Major improvements in cash management in-tion business, enjoyed its second straight year of creased cash ! low by nearly 5850 million, driven record growth in sales and earnings. Establishing by sharply reduced capital expenditures, higher Polymerland subsidiaries in key European niun-carnings and improved working capital turnover, tries is expected to fuel growth there and m pro-vide customers with immediately available resins.

We made three new invesunent initiatives in nw,. mc,

.j' ' ~

market for consumer goods; a plant in Singapore u

hd$4}- ;

sfy 1992: a plant in India to Iespond to an einerging i.g _ M to provide Southeast Asian customers with sharply reduced order-to-delivery times; and a j

% 1, plant in Cartagena, Spain, to increase capacity of

' W [4,[

• our fastest-growing product, Cycoloy* resin.

d In 1992, as a result ofimproved processes and continued investment, we achieved our ambitious 4

y five-year emironmental goal of reducing air emis-m sions by 75% at our U.S. plants. Our emiromnen-g tal stewardship extends bevond manufacturing as we work with customers to expand polymer recy-cling opportunities.

In another market, silicones sales and earnings advanced at good rates due to strong Pacific de-mand and solid growth in the United States.

GE Plastics is well positioned for continued growth in 1993, driven by a recovery in the U.S.

economy and continued penetration of emerg-GE Plastics is increasing its visibilityin China. Here, tod-ing markets in South Asia and Mexico. C<mtin-diers at a day care centerin Guangdong p thurnbs up to inilk bottles inade oflexan jovince give ued high productivity and teduced cycle times resin trorn GL are likely to of h-r significant earnings leverage.

16

l Electrical Distribution and Control f"

Productivity, speed, globalization and customer focus are driving our growth.

Q e.-

~

f GE Electrical Distribution and Control had low-y unda Trorrer President and Chief er earnings on slightly higher ievenues in 1992.

g

[$eIrr'ic $s riburson As m ikets began to reemer from 1991 levels, 3

e I andControl we kept our focus on delivering superior cus-tomer value while driving pr oductisity, growth Tony Randolph of GEand Deb #easlip from Noney-l well' MICR0SWITCHdivisiontraineachotheron and speed.

l s

Productivity of 5% along with a reduction in

{ Products being sold through the newjoint venture.

woi king capital, enabled us to partially offset the impact ofintense price competition and in South America, Mexico and the Far East cost inflation. Suppliersjoined in a team ap-through intensified marketing and sales eflints.

proach to improving productivity.

GE Fanuc, ourjoint venture with FANUC To achieve growth, GE Electrical Distribution Ltd. ofjapan, expanded our pr esence as a gk.b-and Control and Honeywell's MICRO SWITC)I al supplier of factorv automation products and dhision formed a creative venture through senices. We earned key orders from interna-which both businessesjointly sell and distribute tional automotive customers, opened sales of-complementan factory control products, fices in Latin America and laid a foundation for To grow in Europe, our Euroler operation growth in China and Indonesia.

acquired both lemag and Agut S.A. af Spain, in 1993, we will leverage the creativity and enhancing our product offening in residential diversity of our people to ac hieve growth in our distribution and industrial control mar Lets.

increasingly competitive mar Letplace.

We also achic. % resenue growth overall inforination Services

"~~""

Boundaries go down and productivity goes up as companies use electronic commerce.

y I

" "" "" " ' * ' " E

• "Uh'I HelierveS Runtaph Sh:

President and Ch,er year of stiong carnings growth on higher iev-l [fnIrn$a vEsernces enues wins by linking itself with customers m a

1. 0 O boundanless rush toward productivity growth.

We ase a uorld leader in the art and scienc e GE's Christine Grossmann and PaulBenchener of Levi of elec tronic commes ce: the linLing of compa-Strauss & Co. test the levilink " electronic commerce nies electronically 1o customers and suppliers, system that benefits LeviStrauss & Co. andJCPenney.

to banks and financial senices, to distributors, and to logistics and trascoortation suppliers.

electronic trading communities, supported by Functional and bmeaucratic boundaries are de-GE Information Senices, to reduce administra-molished: processes are streamlined; and infm-tive costs and speed decision making.

mation flows freely among the participants in a Our support of electronic commerce would trading community, resuhing in increased pro-not be possible without our global team ofin -

ductivity, speed and decision quality.

fonnation professionals. They are on the lead-As an example, two of our customers, Irvi ing edge of the tactics and te(hnologv that are Strauss & Co. andJCPenney, have streamlined enabling us to deliver producthity and success their order trac Ling,iedu(cd their reorder n-to 12,000 trading partners in the emerging (le time and achieved optimum inventory levels posFmainf nune era. They have made GE Infor-through our electronic commerce support.

marion Senices the world's largest comprehen-In other cases, the publishing, manufactur-sive electronic commer(e senices supplier.

ing and pharmac eutical industries have fonned 17

Motors Rd } ' ~

O We have a bright new attitude that keeps

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.)

the focus on speed, quality and productivity.

4-

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7", q I rf \\

GE Alotors delivered a much improved earn-c) j; 3,,, n,,

Preme ud c N ings perfonnance in 1992 on a very modest in-g e{a """

crease in revenues. We also achieved 65i. total

^

cost productivity, significant ieductions in order-to<leliverv cs cles, imprm ed customer Brian Beifus of GEprograms the memory chip inside a quality levels and a sevenfold improvement in new fCAf

• motor for use in a geotherm?!heatpump operating cash flows.

unitmade by WaterFurnace.

This success is attributable to the won k of highly energized <oss-functional perfonnance EC5f" programmable motor for heating and teams focused on specific matket opportunities air conditioning applications is a significant and business processes. These teams, and a breakthrough for OEN! customers. The motor growing spirit of involvement and act eptance is 20% more efficient than regtdar induction of change among our employees, have kept the

. alors and can be programmed after assembly business focused on speed, quality and pr oduc-to serve many applications, theieby dramatical-tivity, which has enabled us to serve the rising ly reducing our customers' cscle times and in-expectations of our customers and (ounter the ventory requirements, advances made by formidable competitors.

Achieving continuous producthity through We have laum hed a lineup of new energs-new products, new processes and involved efficient products to help customers in both in-people will be our key to sustained profitable dustrial and connnercial markets meet current growth in the 1990s. We are an old business and pending regulatorv requirements. Our new with a bright new attitude.

Transportation Systems JV

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We set out on a global quest for markets

1. y)m n

and orders.. and we found both.

IM ?

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i n

n g

y

o

! Wy Finding new business around the globe, along

.Q Me n de President and Ch,et with continued success in the United States, f/f' diove an energized GE Transportation Systems Sysrems in 1992.

Adopting a mindset that there is growth in GEhasdevelopedinnovativenewpasse perlocomo-mature businesses, our teams set out on an ag-tives for Amtrak, which willbegin introducing them gressive global quest for markets and orders.

into service in f393.

We fotmd both, and while financial perform-ance lagged behind 1991,it was better than ex-fourfold increase in transit orders and a 2f7c pected, and we base the momentum, morale increase in units under service contract. We and positioning for an excellent 1993.

produced more than 200 freight locomotives GE marketing teams grew export locomotive for CSX, Norfolk Southern and Santa Fe.

or ders 7857, primarily by first-time business with Through Work-Out, customers, employees.

Iran and Uruguay as well as follow-on orders management and union leaders have dramati-from Alexico and Canada. In the mining truck cally increased the exchange ofinfonnation mar ket, the global view of our sales teams won and ideas and the speed of decision making propulsion systems orders for fhe new custom-and action. The results: improsed product per-er mines ranging from Botswana to China.

fonnance and reliability as well as an unquan-We solidified our U.S. market leadership with tifiable, but significant, increase in excitement a doubling of our year-end backlog, including a and confidence across our business.

18

e m

GEin the Community Thousands of GE people are volunteering their time, talent and energy l

to make their Communities and this world a better place - whether it be as individual mentors working one-on-one with students or as teams Coming together to help a worthy Cause. Below are five of the many Contributions GEpeople made in 1992.

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... > ' a n 2 n 4 h_SNE20$DdM2: din $d.h4 GEpeople rushed to the aid of hurricane victims in Florida, Louisiana and Hawaiiin 1992, raising more than S750,000in disaster-reliefdonations and f'

contributing everything from portable X-ray equipment to tons of food. GE

&1 Lighting employees in Ohio, for example, collected and transported more q

than 16,000 pounds of food to aid victims of Hurricane Andrew.

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.E students pursue engineering careers, m,.

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SamJohnson(left)of GEin Wilming-Bob St.Jeanis one ofmany ton, N.C., explainsleser welding to u

volunteers from GEPlastics

"#'"I#la Troy, MstelGraharn

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who are helping studentslike Charlie White atthe Rayon GE Medical Systems received nationalrecognition Schoolin Parkersburg, W. Va.,

from the Wildlife Habitat Enhancement Councilin 1992 improve theirreadingskills.

for employee efforts in preserving a native prairie area, restoring woodlands and creating a rearing area for

~~

"~n, trumpeter swans on its 620-acre site in Waukesha, Wis. Here, Margaret Greb (left) of GE and Maureen Y _'M

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Gross of the state's Department of NaturalResources i

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j feedpond weeds to one-year-old trumpeterswans.

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L h Volunteers from The Elfun Society, an organization of GE leaders, and the Company's R&D Center helpedrenovate this playground and other day care facilities used by the Carver Community Center in Schenectady, N1 19

BoardofDirectors (As of February 12,1993)

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H. Brewster Atwater. Jr.

D. Wayne Calloway Silas S. Cathcart Lawrence L Fouraker Paolo Fresco Claudio X. Gon:alez Chairrnan of the ikurd.

Chairrnan of the 11oard.

Director and retired f unner Drart, llarvard Vit r Chainnan of die Chainuan of dir Itoard Chief I secutive Of h< er Chief Execuuve Ofhcer Chairman of the floard, liusinew S( hool, Itoard and Executne and Mariagirig Dircrior.

(

amt Durrior, General and Durctor. PepsiCo.

Ilbnois Tool Won Ls. Inc.. Cambridge Maw.

0111< er. Gencial Electrit Kimberh43a:L de Mdh. Inc., c onsumer Inc. beverages, r>na< L diversified pniducts.

Directos siner 19xl.

Compant. Dirrt tor Mexit u. SA. de C.V, and hah and restaurants, fotah and restaurants.

Chicago.111. Dirrt tor since 19WL Dirr< tor. Kimberl%lar L Minneapohs. Mmn.

Purt base. NY Director 1972-1987 and sin <r 199R Corgeration, pqmi pnwi-Dirr< tor sin (r 1989.

sinc c 1991.

ut ts. Mexit o City Mexit u.

Diicc tor s,in(r 19'B.

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Henry H. Henley..Ir.

David C. Jones Robert L Mercer Gertrude G. Michelson Barbara Scott Preiskel Frank H.T Rhodes Retired Ch.unnan of the Returd l'.S. Air fort e Retired Chairman of Senior Adviu r and Fonner Neuior Vu e Pm.ident. Corne!I ik>ard, Chief 1.xecuuve General and hinner the Ikiard and former Diret'ior. RJL Mary &

President. Motion Pictuar Universir3. lihara, NY p

Of fu er and funner Chainnan of the Director. The (enwhrar Co.. Inc., r etailers, Aworiations of Amerira.

Dirr< tot sirnr 19x4.

Durctor.Cluett.Pratuuh Joint C!urfs of htatt.

Tiir & Rubber C<nnpany. New York. N Y.

New Yoi L. NY Durrior

& Co.. Inc., manuf ac -

Washington D C.

Akron. Ohio. Durc for Dnet tor situr 1976.

sim e1982.

turing and retailing of Director uncr 194 sin < r 1984.

appairl, New York, NY Durtfor sinre 1972.

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,z Andrew C. Sigler Douglas A. WarnerIII John F Welch. Jr.

Walter B. Wriston Chairman of the Ibard.

President and Direc tor, Chairman of the ik>ard Retired Chairman of Clurf Executnr OfInor J.P. Morgan & Co.

and Chief I xer uuve the Ibard and funner and Director. Champion im orporated and Morgan Offa rr. General l'irrtric Director, Citicorp l

International Corporanon. Guarant) Tni*t Company. Gempant Durttor and Citibank. N A, l

paper and forest pr<wl-NrwYoil.NY Durrior since 1980.

New Yor L. N Y l

m ts. Stamford Conn.

• in< r 1992.

Ihrnim siru e 19ti2.

Durrtor inu e 1984.

20

Douglas A. Warner 111 and Claudio X. Gonzalci have E

~

~ - - - -

Comminess of the Board joined GE's Board of Directors. Air. Warner.whoj.omed the Board in November 1992,is President and a Director of Audit committee Public #esponsibilities J.P. 31 organ & Co. Incorporated and 51 organ Guaranty Trust cennute c. Mic hehon.

committee Company. Str. Gonzalez, whojoined the Board inJanuary g}(' l""l3,,

"",'", 'j;',i""I"E E' 1993,is Chainnan and 51anaging Director of KimberlyClarL saas s. cathran John r. wek h.jr.,

de hiexico, S.A. de CX.

I""""sc'on "r"e'istel I

• * " "i""'"

11arbara P

n.11rewster Atwater, Jr.

Edward E. Ihmd. ]r., who had been a rrant 111. Rimacs D wavi e Callowas

~

GE Direc tor and Vi[e Chainnan of the

":/

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gj,,,,, g,,,j,,,,

Board since 1980, retired on Februarv 1, gohen i.. Men c,. chainnan cenn.de a sachchon 1993. During his 36-year career with GE,

~ P,1 John F wekh. l'--

l'"* 'd 5' " h eic Andrew C."sigler

~1 W e Chainin.n 51r. Ilood was a true < hampion for tet h-nology. lie helped build the Companis

?.

' 4. f. -

nenn n. Henlev.y Dougtas A warnn tu 9%

DaudCJ"n" A

rranL i t.I. Yhodes Technology nnd t

Aircraf. E.ngines and Aerospace business-gg waiu.r it wrisu,n Science committee es and made his mark in the U.S. defense I rant HT. Rhodes.

Edward E Hood. Jr.

AfanagementDevelopmentand Chainuan establishment and on the Company's re-compensation committee tawrener r.. rourater search effons. Ile will indeed be missed.

Waher tr wru. ton. Cimirinan Dand C. Jones Walter B. Wriston, a GE Director since 1962, will retir e

(("',Tfl'"" y

"""'"I"*""

from the Board in April. 51r. Wriston is a world-renowned Dand CJones

"""'d""""h*"""

financier, but his intellect and wisdom go far beyond that, encompassing technology, management, public responsibili-Nominating committee ty-any issue that affected GE. Air. Wriston has been the

[fd*j"jj^"jlha]nnan prototypical activist director-impatient with the status nenn n.nenic3.y quo, intensely curious, challenging escrything and evertone fj j'.

uhohon

- but he has also been supportive of the Company with a steadf astness and lovalty that will never be forgotten.

Operations committee Barbara Scon Prrhket.

During 1992, the Directors held 12 meetings and partici-ciminnan pated on these corr.mittees that aid the Board in its duties.

H 35rew*t" Atwa"-r.y

n. warne canowar The Audit C,ommittee, consisting entirely of.outside D.irec-saas s. cahcan '

tors, met four times. It reviewed the activities and indepen-Paolo rrev o dence of GE's independent auditors, the activities of GE's in-

'I,i"d"N,("c'f" g

ternal audit staff, GE's financial reponing pr o< ess, internal Andrew c sinin

""""I^'"""'"*

financial controls and compliance with Ley GE policies.

The finame Committer conducted four meetings. It exam-ined GE's pension funding and trust operations, GE's for-eign ext hange exposme, airline industry financing and other matters invoking large-scale use of Company funds.

The Alanagement Development and Compensation Committee held 10 meetings. It approved < hanges in GE's management, reviewed and approved executive compensation, and admin-istered GE's incentive plans.

The Nominating Committer, at its three meetings, teviewed candidates for the Board and recommended the stnicture and membership of Board committees for the ensuing year.

The Operations Committee met five times. hs arthitiesin-cluded a nniew of GE Capital Senices.

The Public Responsibilities Committee held two meetings at which it evaluated emironmental issues and the activities of the General Electric Foundations.

The kknology and Science Committee participated in two joint meetings with the Operations Committee, one of whic h im luded a uniew of GE Industrial and Power Systems.

21

Management

( As of Febnian-12.1993) l Corporate Executive Senior Corporate Of6cers Corporate Statf Officers Officers John F Welch. Jr.

James R. Bunt Uh c hrsident and unnptroller Chainnan of the Itoard and Cl.iri 11erutive y,,,gg (,,g,,,

+

vue nnident. Anda stafi Paolo Fresco

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,u Ii a M" R"" ^"d V"" I'"'d""d Internachmal 1

<t At quisitions an 4

gg, c, finant e Frank P. Doyle "f' # 'Y fin utise Yu r hnident d

aM Wir e >_a nn ~m m.n s Dale F Frey Vice Prrudent and Ticasurer:

Dennis D. Dammerman W. James McNerney. Jr.

Chainnan and hesident.

Senior Vite hrsdent.

$cnior Vite Prnident; General Elet tric trnnnnent Fmant c hendent.Gl South Ana Guporation Asc' R. MichaelGadbaw Yk e Prnident and Senior O>unsel. Inteniatiorial law and Policy Joyce Hergenhan Yn r Pn sident. Publu Relations igP Robert W Nelson Vit e h esident, finam ial Planning and A1.ahwis

-y Phillips S. Peter Yu e nnident. G wennneni Relations

/

Gary M Reiner Vic e hendent. liu6 ness Dnriopnwni 0" " # ##""*'#

Lewis S. Edelheit Jack O. Peiffer senior Vnc hesident.

senior Vite President.

." " P' " d""' *"d *"i"'

Resrau h and Dnclopinent Hurnan Resoun es EdwardJ. Skike Vk e Prnident. Girporair servn n N?'# ?*

Susan M. Walter vu e heydent stair Governuient Re lations a

o d*

Benjamin W Heineman.Jr.

$rinor Vhe President.

General Gmnsel and Necr etan-e

Operating Management (As of Feinuan 12,1993) l Aerospace Appliances CapitalServices IndustrialandPower Systems Eugene E Murphy J Richard Stonesifer Gary C. Wendt Preudent andhief Lucutne Preudent and Chief I metuthe Chairman, Pr esdent and Chief David C. Genever-Watling Offuet. GF Aerospace Ofbrer,GL Appliancn Lxerutne Ofik er, General P dm ud Gid hk U*' '' U U"I *"I'"' I"'

P Ollk er, GI Industrial and Fred A. Breidenbach Scott R. Bayman and Gennal Electric Capual' T.u e Prnident. Government

\\..u e Prnident. Mar Letmg Powei Sestems Electronic biems and Pniduct Management francis S. Blake Burton J Kloster, Jr.

Thomas A. Corcoran RichardL Burke Vice Prnident and General Senior bce Piesulent. G.eneral

\\_ac Preu. dent. Acrospace

\\..n e Preu. dent. Pun hau.ng.

Omnsel and Scoctart Operations in hnoloc and Rodger H. Bricknell M*""I""'I"E 8' #8 ' #8 I We Prredent. Power James B. Feller he Prc4 dent, Aerospa< c Dennis J Carey Generanon Product Tn hnolop We President. finame,

%nagement y

g l\\uuness Development and James A. Parke Thomas R. Brock, Jr.

I"'#"'*"""*I C"'

Vu e President. Strategk W e President, Industnal h"""

Programs David M. Cote Svuems and seni<n ne Pnsulent %nsurner Stephen Berger gg,;, y, gg,,,;,,,, y,_

Alexander L Horvath

""I' Vu e Prcudent. O< can / Radar W e Pr esident, Fmaru e and % nsor wtems Lawrence R. Johnston g,,,gg g, g,g, We P:nident.

n and Denis J Nayden William B. Lytton y y

g, pg n nu on ue n ent' We Prnident and General ecyn e Generatmn Prcuha tion Gounsel Jay E Lapin P"'

g,,,;,y g,,,y,,

Lawrence R. Phillips

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1. 1. 'I I ##'"###

Yk e Prnident,Iluman W e Prnident.11uman Resoun es

";,fl, Knuurces Bruce A. Enders

,g, y,,,gg y_g,,,,

Michael A. Smith ManadrJR Wn't tor. &neral Corgeration Pnsident and Regional We heddent. Astio Space

"""'"'^PP"*"*"'

f^#C""'"' A ' P"'ifi'

• l"

Jds C. D d@

Robert W Deken senior W e Penident, John M. lavin W e Pnudent. Finam e and Gunmercial Real Estaie We Prnident. Power informanon Tn huologt Financ ing Debven-RobertL Lewis Hugh J Murphy senior W e Prnident, W e Preudent, Pown 1r ans;xn tation and Generation Customer Aircraft Engines I"d""CidI fi"""'i"x 5""i'*

Edward D. Stewart Thomas C. Paul Brian H. Rowe I^"?nnevueheudent.

Virc hesident. Power President and Chief Lxc(utive PN*

"" "" b"E**"i"E O!1u cr. GI Aircraft Engines DaridD.Ekedahl Steven R. Specker Charles L ChadweII b'"i"' * ' Y""id'"

".nn' Y"*id'" N "' I'

madn Unanaal knin f e Vire President, Prwhu tion Teresa M. leGrand DelbertL Williamson WilliamJ Conary ent, GE Capital r hendent.Indu trial n

Vit e President, iluman Den nun and Power Sutems Sales Resoun n Thomas S. Case Henry A. Hubschman Chairman, hesident and We hesident. Irgal Chief 1.kecutive Offk er.

Dennis R. Little Employers Reinsurante W e hesident, Marine and 0>rporation Industrial Engines Michael A. Carpenter MichaelD. Lockhart Chairman. Prnident and W e hoident, Commnrial Chief Executive Ofh< er, Engine and Service Operation Kidden, Peaboch Group Int..

Edward C. Bavaria Vur hnident Airhne MarLeting Robert G. Stiber Vice heudent, Engineering WilliamJ Vareschi Vu e President. Finan< c and Infonnation Spiems Dennis K. Williams Vue hnident.Militan Engme Operations 23

t i Operating Management

((kmtinued) i Lighting NBC ElectricalDistribution International and Control John & Opie Roben C. Wright Ugo Draetta President and Chiri Etruitive h esident and Chief I secutive a hendent and Senior Lloyd G. Trotter Of fu cr. GL 1.ighting Off rn. National Broadcasting C""""t PWdm M Gid M-h U""Parn. Int.

Oflu cr. GL Lin uiral Jellrey R Gannon John L Bn'en c

Vn e h esident. Tn huology Richard Cotton Disuibution and G ntrol Chainnan and Cidef I herutisc

• *'"" k" "' ' P' d'"' *"O Ud" "#'""d' U'""' d'

^

James L Mohn Alan G. Clark Yk e Pirsident. Fmant e Managing Dirrrior. Luroler Mck Dmi W

W James McNerney. k Charles R Pieper

\\"*"' \\ " ' P"d""'

h '"d'"I' N """

Robert R Collins Prendent and Chief h *d#"

"mh Ada Aira Exn utiw OHk ri.

MichaelG. Gartner hesulent and Chief 1 xecutive Gl' Lighnng Europe Preudent. New s OHirer. G1 Ianur Automanon Steven C. Riedel

""" ^ ' " " " ' ' ' " "

""""*"*"A DavidL Momat Pierson G. Mapes H u n.

nnal Unu r VW r h eddent. Operat.ons, hemdent.Televidon NetworL David M. Engelman

~

anada Inn Yuc hrsdent. International GE 1ighting Luio;w Donald W Chimeyer, Jr.

pg;,g,;, g_ Sg,,,,,

.t George F Varga Pnsident. NBC - West (,nast Vic e Preudent. GL Muldie Last.

Chainnan lungsrain John H. Rohrbeck Afnra. Crnual and I. astern Companv.1.id.

hesident. Trievidon Stations Emope Atra Roben B. Schwart information Services EdwardL Scanlon Thomas W Tucker Vu e Puside nt, Nonh tan un u e Wmdent.

Pnudent and Chwf FAccutiw

'Amerk an Pnalut tion Emplowe Relanons Hellene S. Runtsph ODkn. GL North Ada I td.

William A. Woodburn hendent and Chwi Executne Vn r Pusident.hidwide OHk er. GL lufor mauon jE Marketing and Puntact herskes; Virr hesident and g

Management Gurf Information Of ficer. GL ll Plastics licensing / Trading Gary L Bogers Stuart A. Fisher l

MedicaISystems

[',';"l.', "<'l}^ ",j' '"""

Motars

[j,',"' ","

Gl. and RfA Luensmg Nigd& T Andrews James W Rogers Managemem Operation, John M. Trani P

Md" * ~

\\ " 's"a'*""'-

Pnsident and Onef Executiw inc. and GL 1radmg hesident and Chief I xn utive Anu Ofht er. GL Medical kterns OHh cr. M Motors Gunpany Jean M. Heuschen Arno Bohn

\\ irr hendent, Ameriras Preudent and Chwi 3

g Lxec unvr OHk cr. GL Medu al sanems - Lun.gw Jellrey R. Immelt Transportation Systems Aerospace Technology Bobby J. Bowen

?" P""?"' A" """

Connnen ial

\\.ur hrsident. A<hannd Robert L Nordelli Thomas L Cooper Tn hnology Robert R Margala Pusident and Chief Execuuw Vn r President. Acrospat r Ykc hrsident. Americas s & Dd Mcuro OHu cr. M 1ransportarion in hnologv Vu r heudent. Customer d"uld"u""E

$ ems MasLetmg Eugene R Nesbeda OP"',""'""""~d nomas L Dunham hodur ts Ameriras s..ur n redent servar Environmental John K Haddock John B Blystone GESupply Programs

' "'" I "'Ud""

Vic e President. Global N-ra3 GL Supciabrasiws Gbran S. Malm Qouglas J Woods Stephen o Rounsey g,g,,,g_g,,,,

Preddent and Chief

\\ u r hesident, Gl' Supply Utr hesident. Environment.d n e I,rmdent. Financ e Lxn utive Offn er. GL Mrdh al

%ntems Ada Ltd. and Richard U. Jelinek Vukogawa Medical Sntems Vice bredent. Iluman R'*"""**

Richard F Segalini Vn r hesident. Pnxiurnon Herbert G. Rammroth M8Ikel Ug RUd 8 ales and Souning hesident and Repicsentative Di'" '"' GE Pld'"'"

Roben L Stocking Pd"I" Ltd-AlbertJ. febbo Vn c headent wies frederick A. Shinners Vhr Pwrident. Automotkw Vu e President. GL Nilk ones industr} Marketmg and Uwe S. Wascher He"!YJ Singer e

benkor Managmg Dirn tor.

Une h eddent.Atra Gl Plastks-l urope Management and %h-s 24

FinancialSection l Contents Revenues IndependentAuditors* Report 44 l'" bi#*"

S65

^ '

AuditedFinancialStatements

~ *r" w g 7"]

Earnings 26 3

ne Financial Position 28 tzvag l}

gj

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3, r

q gj ;g 3 q

Casa riows 30 Notes to Consolidated Financial Statements 4a 4b 4/ ?!

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y 26

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l 0 Of, ?$

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4 13 Management's Discussion x ouant. no

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: 37g on.,rm, Operations 4

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Consolidated Opemtions 32

• * = " "

4 GE Continuing Operations 33

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,,,y Industry Segments 33 International 36 GECS operations 37 Earnings per share before accounting change Financial Resources and Liquidity 39 Selected Financial Data 42 II" dol'8Si S6 00 Financial Responsibility 44

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O 1988 1989 1990 1991 1992 Dividendspershare (In dollars)

$z50 tI l [

2 00 1988 1989 1990 1991 1992 25

Statement ofEarnings General Electric Company and consolidated afEliates For the years eruled Dec ember 31 (in miHions) 1992 1991 1990 Revenues Sales of goods

$ 29,575 S29,434

$ 29,158 Sales of senices 8,331 8,062 8,064 Other income (note 3) 799 792 686 Earnings of GECS befme accounting change GECS resenues from operations (note 4) 18,368 16.341 14,711 Total revenues 57,073 54.629 52,619 Costs and expenses (note 5)

Cost of goods sold 22,107 21,498 21,371 Cost of senices sold 6,273 6,373 6,198 Interest and other financial charges (note 7) 6,860 7.401 7,394 Insurance policy holder losses and benefits 1,957 1,623 1,599 Provision for losses on financing receivables (note 8) 1,056 1,102 688 Other costs and expenses 12,494 10,834 9.802 Minority interest in net earnings of consolidated afTiliates 53 72 82 Total costs and expenses 50.800 48,903 47,134 Earnings front continuing operations before income taxes and accounting change 6,273 5,726 5,485 Provision for income taxes (note 9)

(1,968)

(1,742)

(1,596)

Earnings from continuing operations before accounting change 4,305 3,984 3,889 Earnings from discontinued operations, net ofincome taxes of $248, S259 and $248, respectively (note 2) 420 451 414 Earnings before accounting change 4.725 4.435 4.303 Accounting ( hange - ctunulative effect tojanuary 1,1991, of posuctirement benefits other than pensions (note 6)

(1,799)

Net earnings S 4,725 S 2.636

$ 4,303 Net earningsper share (in dollan)

Continuing operations before act ounting change S 5.02

$ 4.58

$ 4.38 Discontinued operations before accounting change 0.49 0.52 0.47 Earnings before accounting change 5.51 5.10 4.85 Accounting change - cumulative effect of postretirement benefits other than pensions (2.07)

Net earnings per share S 5.51

$ 3.03

$ 4.85 Dividends declaredper share (in dollars)

S, 2.32

$ 2.08

$ 1.92 The noin to u>nsohdated finarn ial statements on pages 4%fc are an integral part of this statement. Data for IW1 and im have been rec lawdied to state separatel the results of diwontmued operations.

3 9

26

i GE GECS 1992 1991 1990 1992 1991 1990 1

i i

$29,595

$29,446

$29,174 S

S S

1 8,348 8,075 8,089 812 798 702 l

1,499 1,275 1,091 18,440 16.399 14,774 40,254 39,594 39.059 18.440 16.399 14,774 22.127 21,510 21,38, 6,290 6,386 6.223 768 893 962 6,122 6,536 6,474 1,957 1,623 1,599 1,056 1,102 688 5,319 5,422 5,262 7,230 5,448 4,577 13 39 41 40 33 41 34,517 34.250 33.875 16,405 14,742 13.379 i

5,737 5.344 5,184 2,035 1.657 1,393 (1,432)

(1,360)

(1.295)

(536)

(382)

(301)

I 4,305 3,984 3,889 1,499 1,275 1,094 i

420 451 414 4,725 4,435 4,303 1,499 1.275 1,094 l

1 (l,799)

(19)

$ 4.725 S 2,636 S 4,303 S 1,499 S 1,256 S 1,094 l

1 In the supplemental consohctating data on this page, *GE" means the basis of c onsohdation as described in note 1 to the conwelb

-l l

dated financial statements: "GI CS" means General Electnt Capital Senices. Inc.. (former ly General Elet nic rinancial Senic es, luc.) and all of its afbliates and asunciated wmpanies. Transactitms between GE and GLCS haw been eliminated f r om the I

' General Electric Company and conw>1idated af hhates" c ohimns on the preceding page.

i i

i i

l l

1

. 27 i

4

- - + - - -.,., ---,

-n----

,-c-,,,,,,

I l

Statement ofFinancialPosition l

l General Elecuic Cornpany l

and consolidated af fihates r

j At Derernt.cr 31 (In nulliom) 1992 1991 Ass:ts Cash and equivalents

$ 3,129

$ 1,971 GECS mar ketable securities carried at marLet (note 10) 24,154 17,850 Mar ketable sectuities - other (note 11) 11,256 7,971 Securities pun hased under agreements to resell 26,788 19,402 Current icceivables (note 12) 7,150 7,324 Inventories (note 13) 4,574 5.321 GECS financing receivables (investruent in time sales, loans and financing leases) - net (note 14) 59,388 55,752 Other GECS recchables 8,025 7,223 Property, plant and equipnient (inchiding equi)nnent leased to others) - net (note 15) 20,387 18,332 Investment in GECS Intangible assets (note 16) 9,510 9,026 All other assets (note 17) 16,625 14,218 Net ass < ts of disc ontinued operations 1.890 2,118 Tottessets

$192,876 5166.508 li:bilities andequity Short-term borrowings (note 18)

$ 56,389 S 51,350 Acc ounts payable, principally trade accounts 8,245 7,931 Securities sold under agreements to repun hase 36,014 28,173 l

Securities sold but not yet pturhased, at marLet (note 19) 11,413 4,884

(

Progicss c ollections and price adjusunents accrued 2,150 2,356 Dhidends payable 539 477 All other GE cur ent cc sts and expenses atcrued (note 20) 5,725 5,686 long-term lxurowings (note 18) 25,376 22,681 Reserves ofinsurance afbliates (note 21) 7,948 6,291 All other liabilities (note 22) 9,734 9,9 19 Deferred income taxes (note 23) 4,540 3,829 l

Totalliabilities 168,073 143,607 Minority inten st in equity of consolidated affiliates (note 24) 1.344 1,218 Conunon stot k (926,564,000 shares issued) 584 584 Other capital 755 938 Retainer' carnings 26,527 23,787

1. css conunon stot L hehlin treasury (4,407)

(3.626)

Total share owners' equity (notes 25 and 26) 23,459 21,683 Tot:Iliabilities and equity 8192,876 5166.508 The notes to nonsohdated 1manc ial statenicuts on pages 45-R are an integtal pan of this statement. Data for 1991 have been reclassified to state separately the net assets of' discontinued oper atiota.

28

4 GE GECS 1992 1991 1992 1991

$ 1,189

$ 1,046 S 1,940 925 24,154 17,850 32 41 11,224 7,930 26,788 19,402 7,462 7,569 4,574 5,321 59,388 55,752 8,476 7,676 9,932 9.975 10,455 8,357 8,884 7,758 6,607 6,536 2,903 2,490 7,505 6,786 9,196 7,432 1,890 2.118

$48.075

$47,150

$154,524 S127,814 8 3,448 S 3,482 S 53,183

$ 48,070 2,217 2,207 6,624 6,207 36,014 28,173 11,413 4,884 2.150 2,356 539 477 5,725 5,686 3,420 4,332 21,957 18,350 7,948 6,291 7,096 7,597 2.638 2,364 (329)

(1,023) 4,869 4,852 24,266 25,114 144,646 119,191 350 353 994 865 584 584 1

1 755 938 1,868 1,741 26,527 23,787 7,015 6,016 I

(4,407)

(3,626) 23,459 21,683 8,884 7.758

$48,075 547,150 8154,524 S127,814 In the supplemental < onw,lidating data on this page. *GI " means the 1, asis of ron-solidation a described in note 1 to the convshdated huancial statements;"GLCS' I

ruram General Dertnc Capital Services. Inc. donnerly General Dectric Fmancial Services,Inc.) and all of its afhhates and amulated companies. 'Iramartiom be-tween GL and G1CS have been chminated h am the " General Dectric Company and tonsolidated afhhates* rolumns on the preceding page.

I 29 i

o

?

Stat:mentofC:shFlows.

General Elecuic Company j

and consolidated affiliates For the yean ended December 31 fin millions) 1992 1991 1990

[

Cash Rows from operating activities Net earnings

$ 4,725 -

$ 2,636

- $ 4,303

[

less earnings from discontinued operations (420)

(451)

(414) i Adjusunents to reconcile net earnings to cash provided

[

from operating acthities l

Cumulative efTect of change in accounting principle 1,799 Depreciation, depletion and amortization 2,818 2.654 2,333 Earnings retained by GECS Deferred income taxes 707 826 180

[

Decrease (increase) in GE current recehables 135 (215)

(751) i Decrease (increase) in GE imentories 820 378 (8)

Increase (decrease) in accounts payable 57 1,151 301 Increase in insurance reserves 703 725 534 Provision for losses on financing recchables 1,056 1,102 688 i

Net change in certain broker-dealer accounts 1,018 (1,548) 1,200 All other operating aethities (2.111)

(1,952)

(939)

[

Net cash from continuing operations 9,508 7,105 7,427

(

Net cash from discontinued operations 741 392 441 l

Cs:h provided from operating activities 10,249; 7,497 7,868 i

Cash Rows frominvesting activities Additions to property, plant and equipment

- (4,824)

(4,870)

(4,370) l Dispositions of property, plant and equipment 1,793 1,090 1,584 l-Net increase in GECS financing re(chubles (4,683)

(7,254)

(5,577) l l

Payn.ents for principal businesses purchased (2,013)

(3,769)

(4,595)

Proceeds from principal business dispositions 90 604 -

603 l

All other investing acthities (3,823)

(2.045)

(2,235)

{

Cash for investing acthities - continuing operations (13,460)

(16,244)

_ 14.590)

(

Cash for investing aethities - discontinued operations

-(93)

(117) -

(151) i Cash usedforinvesting activities (13,553)

(16.361)

(14,741) i Cash Rows fromKnancing activities l

Net change in bonowings (maturities 90 days or less) 3,092 6,126 5,407 l

Newly issued debt (maturities more than 90 days) 13,084 15,374 12,065 Repayments and other reductions (maturities more than 90 days)

(9,008)

(10,158)

(7,427)

Sale of preferred stock by GE Capital 275 j

Disposition of GE shares from treasury (mainly for employee plans)

_425 410 416 Purchase of GE shares for treasury (1,206)

(1,112)

(2,468)

Dhidends paid to share owners (1,925)

(1,780)

(1,678)

Cash provided from (used for) Knancing activities 4,462 8.860 6,590 increase (decrease)in cash and equivalents during year 1,158 (4)

(283)

Cash and equhalents at beginning of year 1,971 1,975 2,258 Cash and equhalents at end of year S 3.129:

$ 1,971

- S 1,975-Supplemental disclosure of cash Rows information Cash paid during the year for interest.

$ (6,477)

_ S (7,145)

_$ (7,072) l Cash paid during the year for income taxes (1,033)

- (1,244)

(1,528) i ne notes to consolidated financial statements on pages 45-62 are an integral part of this statement. Data for 1991 and 1990 haw been redassified to state separately the resuhn of discontinued operanons.

l i

l

. 30 i

5 y

w

~.-

--w w

e v

,m

---e-.e-

f i'

l I-l i

GE GECS' 1992 1991 1990 1992 1991 1990 8 4,725

$ 2,636

$ 4,303

$ 1,499

$ 1,256

$ 1,094 1

l (420)

(451)

(414) l 1,799 19

}

1,483 1,429 1,359 1,335 1,225 974

[

(999)

(925)

(744) 675 271 54 32 555 1"6 j

68 (109)

(864) 820 378 (8)

(43)

(203)

(192) 139 1,391 641 l

703 725 534

[

-l 1,056 1,102-688 1,018 (1,548) 1,200 g

(1,736)

(1,199) 109 (439)

(754)

(1,066) 4,573 3,626 3,603 5,343 3,971 4,191 741 392 441 l

5.314 4,018 4,044 5,343 3,971,

'4,191

{

(1,445)

(2,126)

(1,978)

(3,379)

(2,744)

(2,392) f 46 61 171 1,747 1,029 1,413 l

(4,683)

(7,254)

(5,577)

(933)

(130)

(2,013)

(2,836)

(4,465) l l

90 327 603 277 i

(103)

(60)

(490)

(3,668)

(2,125)

(1,730) 3 (1,412)

(2,731)

(1,824)

(11,996)

(13,653)

(12,751)

(93)

(117)

(151)

(1,505)

(2,848)

(1,975)

(11,996)

(13,653)

(12.751)

(763) 483 1,175 3,895 5,641 4,200 1,331 2,136 1,450 11,753 13,238 10,615 (1,528)

(1,573)

(1,401)

(7,480)

(8.585)

(6,026) 275 425 410 416 (1,206)

(1,112)

(2,468)

(1,925)

(1,780)

(1,678)

(500)

(350)

(350)

(3,666)

(1,436)

(2,506) 7,668 9,944 8,714 143 (266)

(437) 1,015 262 154

)

1,046 1,312 1,749 925 663 509 i

i

$ 1,189

$ 1,046 S 1,312

$ 1.940

$ 925

$_ 663 i

i S (570)

$ (761)

S (762) 8 (5,907)

$ (6,384)

$ (6.310)

)

l (936)

(1,343)

(1,488)

(97) 99 (40)

In the nupplemental conwilidating data on this page "Gr* means the basis of conwlidation as described in note I to the tonwli-daird financial statements. "GECS" means General Ucctric Capital Senices, Inc. (formerly General Dertric rinancial 5cnics, Int) and all of its aflibates and awwiated companies.'Iransirtions between GE and GTC5 have been rhminated f rom the General Electric Company and runwhdated affdiatei rolumns on the preceding page.

t

.31 1

1

,.. -. ~.

I

. l, Management's Discussion of Operations Ovetview trolled by the shar e owners of Martin Marietta Corporation, General Electric Company's consolidated financial state-subject to satisfaction of certain conditions (see note 2).

ments represent the combination of the Omnpany's manu-These businesses prmide high-technology products and facturing and nonfinancial senices businesses ("GE"or senices such as electronics, asionic systems, computer soft-

"GE exc ept GECS') and the accounts of General Electric ware, annament systems, missile system components, simu-l Capital Senices, Inc. (*GECS'), fonnerly General Electric lation systems, spacecmft, communication systems, radar, Financial Senices, Inc. See note I to the consolidated sonar and systems integration, and a variety of specialized

{

financial statements, which explains how the various finan-senices for govemment customers. Revenues totaling cial data ar e presented.

55.2 billion declined 7% from 1991, principally because Management's Discussion of Operations is in three oflower satellite sales. The 1991 can nings incicase result-

{

parts: Consolidated Operations, GE Continuing Opem-ed principally from absence of a countemart to a 1990 j

tions, and, beginning on page 37, GECS Operations.

restructuring prmision and strong 1991 productivity, par-tially offset by a 3% decicase in icvenues.

i Consolidated Operations ne 1991 ammnting change rep 1esents adoption of State-1992 was anothwycar ofenormous challenge for business in ment of Financial Accounting Standards (SFAS) No.106 general, with slow growth in the l'nited States and wntinu-

- Employers' Accounting for Postretirement Benefits

{

ing economic difficulties around the world. GE again Other Than Pensions * (see note 6). The impact of ab-

{

demonstrated the strength ofits divene businesses in this sorbing the one-time transition effect of the accounting dillicult enviromnent with ongoing actions tarycted at im-(hange decreased 1991 carnings by $1.799 billion ($2.07 I

prming operating cfTiciencies, remiucing overhead costs per share), with a con esponding decrease in shar e owners' and lowering wo: Ling capital requirements, particularly equity, and resuhed in net camings of $2.636 billion through inventoivrelated piecess changes.

($3.03 per share). Although there was no cash flow impact.

I Earningsper share were 55.51 in 1992,8% more than 1991's this one-time charge lowered the return on average share mmparable earnings per share before accounting change, owners' equity to 12.2% in 1991, compared with 20.9% in

[

which were 5% higher than 1990. Earnings were $4.725 bil-1992 and 20.2% in 1990.

l lion in 1992, up 7% hom 199Fs comparable carnings be-New acmunting standants include SFAS No. I12

• Em-i fore accounting change, which were 3% ahead of 1990.

players' Accounting for Postemployment Benefits," which

{

Growth in earnings per share outpa< ed growth in net earn-icquis es, among other things, recognition of a liability for

}

ings, reflecting the impact of GE's share repurt hases dm-certain severance benefits that may be provided to employ-l ing both periods bec note 25).

ces befine retirement. Management is gathen ing informa-l l

Earnings per sharefmm mutinuing operations of $5.02 were tion and evaluating the Statement's requirements but has i

up 10% over 1991's comparable 54.58 following a 5% in-not determined the likely cfTects,if any, ofits application crease over S4.38 in 1990. The 1992 increase was led by on the Company's financial position or results of opera-l strong perfonnances in GECS, Power Systems and Medical tions. The Statement must be adopted no later than the l

Systemt During both 1992 and 1991, strong productivity first quarter of 1994.

j gains more than ofTset the intense margin pressures result-ing from worldwide price competition and, to a lesser ex-tent, cost inflation. Consolidated revenues frum continu-Earnings before accounting change j

ing operations of $57.1 billion in 1992 were up 4% frum 1991 following a 4% increase from 1990. The principal l'a t'illims)

Kio components of consolidated resenues are GE sales of goods and senices, which were ahnost flat over the period, 40 and GECS tevenues hom operations (carned income),

which increased 12% in 1992 following an increase of 11 %

1 20 in 1991 over 1990.

)

2.0 Eamings per sharrfmm dismntinued opemtions of 50.49 in 1992 (down 6% from 1991,which was up 11% irom 1990)

• Da==

mea =

r.0 represent the per-share, af ter-tax operating results of Acro-

,c, space and certain other businesses that are expected to be

==

transferred in the first half of 1993 to a new company con-tm rse rm er e

f 32 l

4 Dividends declared totaned $1.985 billion in 1992. Per-share GE/S&P dividends per share increase cornpared with 1987 dhidends of $2.32 were up 12% from last year's $2.08 per share. This marked the 17th consecuthe year of dhidend 33 growth. Dividends declared per share increased 8% in l

1991 and 13% in 1990.

g, GEContinuing Operations E

l as GE totalrecenues of $40.3 billion in 1992 were up about 2%

from $39.6 billion in 1991, which was up 1 % from 1990.

72 e GE's sales of goods and senices ior 1992 totaled 537.9 billion compared with $37.5 billion in 1991. The sales ef-au

'8 fects of(hanges in volume and prices differed maikedly a sum g

among businesses. Overall, volume was about 2% higher in 1988 1989 1990 1991 1992 1992 than m. 1991 as a higher level of shipments in I,iasu.cs, Applianc es and Medical Systems, coupled with increased advertising rewnues in NBC, was partially offset by re-

= GE's interest expense in 1992 was $768 million, down duced shipments in Aircraft Engines. lower selling prices 14% from S893 million in 1991. lower interest expense in in most businesses, particularly Plastics and Aircraft En-1992 was primarily attributable to lower interest rates. In-gines, offset about one-half of the volume increase. Sales terest expense decreased 7% in 1991 compared with 1990 in 1991 were up about 1 % from 1990 because of the effect as lower interest rates more than offset an increase in the of about 2% higher shipment volume, partly offset by low-average level of borrowings resulting principally from re-er selling prices.

pur chases of GE stock.

e GE's other income from a wide variety of sources was The outlookfor 1993 holds continuing challenges as compe-

$812 million in 1992, $798 million in 1991 and $702 mil-tition intensifies and accelerates. However, GE enters 1993 lion in 1990. Details of GE's other income are in note 3.

with a su ong balance sheet and excellent cash flows. The o Earnings of GECS were up 18% in 1992 following a Company is positioned to capitalire on both global growth 17% increase the year befor c. See page 37 for details of opportunities and continued improvement in the U.S.

these earnings.

economy in the coming year.

Totalcosts and expensesfor GE were virtually unchanged GE industry segment trvermes and operatingpmfit for the last during the thzec-scar period. Principal elements of these five years are shcun in the table on page 35. Re,enues in-costs and expenst s ate costs of goods and senices sold; clude income from sales of goods and senices to cus-selling, general and administrative expense; and interest tomers and other income. Sales from one Company com-expense.

ponent to another generally aie priced at equivalent mercial selling prices. Intersegment revenues are to e Operating margin is sales of goods and senices less shown in note 30.

the costs of goods and senices sold and selling, general and administrative expenses. Operating margin was 11.1 %

GE industry segment revenues and operating profit re-of sales compared with 11.2% in 1991 and 118% in 1990.

Hect the 1992 reclassification of certain international activ-Strong 1992 margin improvements in Power Systems, NBC ities to reflect m re closely their appropriate industry seg-and Medical Systems were offset by declines resulting from ment. Prior-year segment data were reclassified to achieve reduced volun$e at Aircraft Engines and pricing pressures consistency. Such reclassifications were not significant.

Onnments n e ch GE segment follow.

at both Plastics and Aircraft Engines. Operating margin weakness in the 1991 Broadcasting segment was not entire.

= Airrmfl Engines operating profit and revenues wer e ly offset by improvements in the other segments. GE's total down 8% and 5%, respectively,from peak 1991 levels.

cost productivity (sales in relation to costs on a constant 1992's results reflect both declining military engine ship.

dollar basis) was 4.3% in 1992 compared with 3.9% in 1991 ments and, for the commercial businesses, weakness in and 5.7% in 1990. GE's productivity, whic h over the past spare parts sales as airline-s continued to consolidate inven-three years was three times the level achieved during the tories, factors only partially offset by improved commercial last recession of the early 1980s, more than offset the engine sales, producthity gains and sharply higher sales of impact ofinflation on the Company in 1992 and 1991 and aeroderivative engines for marine and industrial applica-offset substantially all inflation in 1990.

tions. Revenues were up 4% in 1991 compared with 1990, reflecting higher sales of commercial engines and spares 33

i l

l i

I and termination billing ibr cancellation of the T4n, prnnanh related to higher res enues associated with the (P-7 ain raf t) and F412 ( A-12 ain ratti pr ograms, whi( h

()hmpics. NBC's (able operations experieru ed their fint imae than ofhet hmen militan sales. Opciating inofit Ior iull scar of opemting profit. Segment operating profit de-1991 was up i1C over !!K80. piiruipally as a result of the in-(lined 5Wi in 1991 h om 1990 on a el decrease in Icu acased solume and suona pr oductivity gaint enues. Higher program (osts, a write-down of f uture sports Alneut 33'i of 1992 Aiirraf t Engines iesenues were f rom iights and the Gulf War mscrage. (ombined with n difli-l sales to the U.S. gmernment. down f rom 39'i and 40'i in

( uit achcrtising mar ket, mor e than ofhet the I!Ol gain on 1941 and 1990, resperthch. The ieduc tion ieflects ic-the sale of thejoint sentur e discussed piniousiv.

l diu ed spendmg ioi ongoing defense pr ogr ams as well as

• Industrial r esenues wer e abotit 2'i higher than in l

the 1.u L of a munterpar t to resenues f rom termination j!ml as the cffea of the 1992 consolidation of Thorn in l

billing ref( ried to above. Businew with the U.S. govern-the 1.ighting business was almost ofhet by hmer lo< omo-ment is dhersified with mam programs imohing numer-the shipments. Operating profit was about the same in ons agencies and senicet both cars. icfic( ting the ( ontinuation of pricing pr esuu es 3

Iir m orders recched during 1992 totaled SS.9 billion and cost inocases in the Electrical Distribution and Con-mmpared with Sh3 billion and 58.2 billion in 1991 and u ol and Transpor tation Svstems businewes, as well as the l

1990, r especthelv. Cancellations of prior or ders amounted lower lo( omotive shipments, f amor s whi( h wer e abnost o!I-to 50.3 billion in It02. The firm orders ha( klog at the end set in productivitt thronglunut the segment and higher op-of 1992 aggregated 59.5 billion mmpared with 511.9 bil-erating pr ofit in the 1.ighting business.1991 operating lion and 513 2 billion at the end of 1991 and 1990. icspec-profit was 3'i lower than 1990 on relathelv flat icvenues as tivelv. About 4l'i of the total 1992 hac klog was scheduled recession :clated weaknew in the short-cy(Ic portions of for delherv in 1993.

the Motors and Electrical Distribution and Connot busi-l The dualimpaa of de(lining militan sales and mutinn-nesses was partially ofhet by the effeu of omsolidating ing dif findties in the mmmercial airline industrv make it Tungsram in the 1.ighting business.

unlikely that in the 1993 to 19!6 time irame, Aiu raf t En-

= 3faterials inenues inacased 2!i during 1992 primari-gines will enjov the wlmne gr owth and piofitability of the h e dm imdt d a higlu i physical mlume of'shipmerits.

l caily 1990s. The business has taken and will mntinue to hadadd in U S. plaics markets. Operating profit, take ( ost a( tions in anti (ipation of market ieahties.

howeu n dh new d 89 because significant worblwide e Appiamrs nenues wne up 29 hom 1991.primarily price mosion and mst inflation exceeded substantial pur hom sales of ictrigerators and ranges, the result of in-ducthiry gains. The benefits ofimprmements in cash flow s creased industn-wide demand in U.S. mar Lets after four (ontributed to the segment's very pouthe effect on the scars of dn line. A W deacase in 1992 operating profit ie-Companfs net earnings in 1992. Rnenues and operating suhed principallt h om lower selling pric es mst im reases profit in 1991 woe down 89 and 219 respemivels reflea-and significant imestment in new products and senic es.

ing both mlume and pric e weakness in U.S. appliam e, the mmbination of whit h mor e than ofhet the higher ml-automoth e. olh( e inf ormation svstems and housing mar-ume and productivitt gaint. Revenues and operating pn> fit Lets and. late in the year, dn lining mlume and prices in were down 79 and 89, resproheh,in 1991 c ompaird Emope. In addition operating profit f or 1990 included a I

with 1990. ieflening primarih a mmbination of r edu(ed gain on the disposition of Ladd Peuoleum.

I demand in U.N maikets during the :n ession, lower selling

, py,g3.em icwnues inoceed bs 39 and 11G in pric es and cost ino cases. Appliam es mutinueti to shor ten 1992 md P 91, sqcaiu It. as a higher inel of shipments or der-to-delh erv cu le times during 1992 and 1991, r esuh-d anbines ud,in 1992,inocased sales of nuclear fnel ing in much lower imentorvleu h that. in tmn.yicided and s nices more than offset the impact of the in ession l

wnings not entirch reflected in operating profit.

on Om Power Deliu n ad Industrial Systems and Senic es e Bmadcasting operating profit declined 257 from 1991 operations. Operating profit inacased by 189 and 32% in on an MG inacase in icu nues. The principal causes of the 1992 and 1991, respectiveh, ova the prior-> car luTiods i

pmfit dn hue were the la( L of a counterpart to last 3 car's r eflecting mainly volume gmwth in the gas tmbine busi-gain f rom the sale of NBCiinterest in the RCA Columbia new and pmdm tivity gains in the Power Generation busi-11ome Videojoint seuture and the negathe impaa of d"~

ness in 1992 and throughout the entire segment in 1991.

i Siuumn Oh mpic Games. Substantial olhet was a(hined The suength in Power Systems orders that began in 19s9 by impmvements in both the (oic NBC Networ k bminess.

mutinued in 1992 with orders totaling about 57.5 billion l

whic h was driven in ( ost conu ol incasures. and double-mmpared with the verv suong 58.0 billion in 1991 and i

digit pmfit increases at fhe of NBC s six television stations.

56.3 billion in 1990. The Power Systems ha( Llog was l

34

l SummaryofIndustrySegments General Electric Company and < onsolidated a!Iiliates for the 3 cars ended Dec ender 31 (In milhons) 1992 199]

1990 1989 1988 Rev:nues GE Aircraf t Engines S 7,368

$ 7,777 5 7,504 S 6.562 S 6.410 Appliara es 5,330 5.22a a.a92 5.358 4.976 Ihoadcasting 3,363 3,121 3.236 3,392 3.63S Industrial 6,907 6.783 6.644 6.689 6,785 N!aterials 4,853 4,736 5,140 4,944 3.551 I

Power Systems 6,371 6,189 5,600 5,104 4,797 l

11 c hnicid Produc ts and Senices 4.674 4,686 4,259 4,049 3,956 All Other 1,749 1.545 1.369 1,246 1,182 Gorporate items and eliminations (361)

(468)

(285)

(433)

(440)

Total GE 40.254 39,594

_39,059 37.211 34,855 GECS Financing 10,544 10,069 9.000 7.333 5,827 l

Specialty Insuranc e 3,863 2.989 2,853 2.710 2,478 Securities Ilroker Dealer 4,022 3,346 2,923 2.897 2,316 I

All Other 11 (5)

(2) 5 34

'liitd GECS 18,440 16.399 14.774 12.945 10,655 i

Eliminations (1,621)

(1,364)

(1,214)

(1.021)

(858) l Consolidatedrevenues

$57.073 S 54.629

$52.619

$49.135 S44.652 Op: rating proht GE Aircraf t Engines

$ 1,274

$ 1,390 5 1.253 5 1,050 S 1.014 Appliances 386 400 135 386 56 liroadcasting 204 209 477 603 540 Industrial 888 885 910 847 824 51aterials 740 800 1,010 1,055 738 l

Power Systems 1,037 882 666 471 171 Technical Products and Senices 912 693 538 538 443 All Othe r 1.717 1.513 1,295 1.103 956 Total GE 7,158 6.772 6.584 6.053 5.042 GECS Financing 1,366 1,327 1.267 1,152 Md Specialty insurance 641 501 457 361 334 Securities Ihoker-Dealer 300 119 (54)

(53) 64 All Other (272)

(290)

(275)

(322)

(270)

Total GECS 2.035 1,657 1.395 1.138 1,027 Eliminations (1.485)

(1,259)

(1,073)

(903)

(802)

Consolidatedoperatingproht 7,708 7,170 6.906 6.288 5,2G7 GE interest and financial charges (net of elimiriations)

(752)

(881)

(941)

(715)

(652)

GE items not traceable to segments (683)

(563)

(480)

(552)

(519)

E rnings from continuing operations before income taxes and accounting change

$ 6.273 S 5,726 5 5.485 5 5.021 S 4.096 The m.tes to e onv.hdated finatn ial st2itt-rnents ori pages 454c are an integr al part of this staternerit. -(,17 means the basis of (onsohdation as devribrd in note 1 to the conu.hdated financial statementsFG1 C$" means General I let trit Capital Services. Inc. (f onnerh General Electrir Financial Senices. Inc.I and all of its afhhates and anociated companies. Operating profit of GL segments eu ludes intesest and other f manna!(harges operating profit of GI Ch indudes the efirt ts of intriest and diu ount, w hi< h is the largest < lement of GLCh' operating u.ts. Data f oi all ;uiorara periods have been act lassihed for disc ontinued opetations and to reflect the piesent method of alk < ating GI/s international activities 35

r I

t

)

i I

510.3 billion at tu mber 31,1992, up $0.7 billion from a tions, except GECS, located outside the United States. In-year earlier, with approximately 34% scheduled for ship-ternational icvenues were $15.8 billion in 1992 (39% of

[

ment dming 1993.

GE's total revenues) compared with $15.4 billion in 1991 l

• TechniarlPrrxtucts andSen ices revenues were about the and S13.8 billion in 1990. The chart below lef t shows the same in 1992 and 1991 as the transfer of the computer serv-growth in GE's international resennes in relation to GE's ice operations to GECS at mid-1992 was parnally offset by a total resenues over the past five years. Ir,

-nal oper-i modest incr ease in Medical Sysiems equipment sales and ating profit was 52.0 billion (28% of GE't profit) ser*r income worldwide. Openting profit was up 32% in in 1992, S2.2 billion in 1991 and $2.0 billic.

K 196 over the prior year, principally from the gain arising The accompanying financial results reported in U S.

l from realignment of the equity positions of GE and Erics_

dollars are affected by currency exchange. Management j

son in their mobile communications venture and much guants against currency fluctuation with a number of tech-l improved operations in the Medical Systems business, pri.

niqucs, including its practice of borrowing, where possible, i

marily as a result of strong productivity gains. The continu-in local cun encies and hedging significant cross-cunency ing demand for computed tomography, magnetic reso.

transactions. Also, international acrhity is diverse, as shown nance imaging and X-ray products as well as higher sales of for revenues in the chart at the bottom of this column, and j

Medical Systems senices, coupled with much improved re.

not concentrated in any single currency.

l suits in GE Information Senices, were the principal factors GE's export sales by major world areas are as follows.

contributing io increases in revenues (up 10%) and oper-GE's exports from the United States to errernal customers ating profit (up 29%) during 1991 compared with 1990.

On miniono 1992 1991 1990 Medical Sutems received S3.6 billion of orders in 1992, 2

a 6% increase over the strong perfonnam e of 1991. The

["'{

g l

hacklog of unfilled orders at year-end 1992 reached a Americas 1,126 1,008 748 l

l recos d level of $L8 billion ($1.7 billion at the end of od,er 1.o79 to94 859 j

1991), about 83% of which was scheduled to be shipped

$6.919

$6.852

$s.51i l

in 1993.

i l

e AllOther consists primarily of GECS' earnings. Also Exports fr om GE operations in the United States to their l

l included are revenues derived from licensing use of GE fliliates totaled $1.281 billion in 1992, $1.246 billion in i

know-how to others, which decreased in 1992 principally 1991 and $1.128 billion in 1990.

j as a result of reduced royahy income fromJapanese license GE made a positive 1992 conuibution of more than $5.0 l

agreements.

billion to the U.S. balance of trade. Total exports in 1992 l

wer e $8.2 billion, including both exports from the United

• GEInternational, with representatives in 3a.countnes, provides corponne-!ctel integration for international activ-States to external c ustomen and affiliates. Imports f.rom GE affiliates were $0.9 bilh.on, and direct imports from ex-mes of G. E's business segments.

ternal supplien wer e $2.2 billion.

E..stimated results of international operations inchide all exports f rom the United States plus the iesults of opera-GE's revenues from continuing operations GE's international revenues from continuing operations (In bmions) g2D (in bilhonst

$r6p 33.6 y

w 25.2 9.6 16 2 M

, g,,,

/ in

=w y.

p,:a

}

n A w was i

%x4

,q.-w[ h,ybM

.ha[ gh $

3#

a w,,,w,a a emru s,w, y

m'}

a unadsmes n Eurme 1988 1989 1990 1991 1992 1988 1989 1990 1991 1952 36

~. _ - -, _.

l 1

l GECS Operations GECS' revenues GECS (onducts its business in three segments. Emancmg

1. deel s20 segment im ludes financing operations of GE Capital Cw pomtion (GE Capital). Speciahy Insmunce segment in-16 cludes operations of Employers Reinsurance Corporation (ERC) and the insura7ce businesses of GE Capital. Securi-72 ties liroker-Dealer segment imludes operations of Kidder,

]

Peabody Group luc. IKidder, Peabody). A further descrip-l tion of these segments can be fi>und on page 61.

GECS' earnings were rp 18% to $1.499 milhon in 1992 af ter a 17% increase to S1,275 million in 1991 on a compa-

---

~

rable basis, principally on continuing sharp improvements o

in the earnings of GE CapitaFs Specialty Insurance busi-gggg gggg gggg yppy 7997 nesses and record earnings by the Securities 11roker-Dealer j

segment, where earnings were substantially higher than in 1991, following a loss in 1990.

S1.6 billion (2.63% of receivables) at the end of 1992 and GECS'principalmst isforinterrst on borrowings. Interest in in management'sjudgment, appropriate given cunent enmoime circmuuances expense in 1992 totaled 56.1 billion,6% lower than in 1991, which was 1 % higher than in 1990. The 1992 de-A dI*C"*' ion about the quality of certain elements of the crease reflected substantiallv lower interest rates, which Financing segment im estment portfolio follows. Further details are included in note 14.

more than offset higher avemge borrowings and the cost of funding higher leveh of investment in trading positions Consumerfinancing rrecimbles, primarily retailer and auto 4

in the Securities 15roker-Dealer segment. GECS' 1991 receivabh-s, were S14.8 billion at the end of 1992 and 1991.

increase in interest expense was a result of the cost of Noncarning receivables were 5444 million at the end of funding increased investments in trading positions, nearly 1992, a 20% decrease from the end of 1991. The provision offset by substantiallylower mies on higher average bor-for losses on retailes and auto financing ieceivables was rowings. The composite intes est rate on GECS' borrowings

$578 million in 1992, an 8% deciease from S628 million in was 5.78% in 1992 compared with 7.46% in 1991 and 1991, r eflecting improvement in consumer delinquencies, 4

8.89% in 1990, in part due to increased collection efforts. Most nonrarn-GECS' industry segment arvenues and operatingpinfit for the ing iereivables were private-label credit card ieceivables.

last five rears are aho shown in the table on page 3*i. Rev-die majonty of whh were subject to various lehaving enues from operations (camed income) are detailed in n2nge ents that prmide full or partial recourse to the

~

nue1 ongm tmg retader.

• Einaruing segment opemting profit of $1,366 million Comrnertialtralestateportfolio included $10.5 billion of increased 3% in 1992 and 5% in 1991. Higher levels of as-commercial seal estate loans classified as finance receiv-sets and increased financing spicad on those assets, the ex-ables at the end of 1992, about the same as the end of (ess of yield (rates earned) over interest mies on borrow-1991. Such loans were generally secured by first mortgages.

ings, were important factors in both years. Financing In addition to loans, the commercial real estate portfolio segment assets rose 10% and 14% in 1992 and 1991, re.

alsoincluded $1.1 billion of assets punbased primarily spectively, wink the composite rate on borrowings fell 166 from Resolution Trust Corporation (RTC) for resale and basis points in 1992 and 135 basis points in 1991. Overall,

$1,4 billion ofinvestments in real estatejoint ventures, lower rates on borrowings more than ofIset hewer yields, n-both of whic h are included in other assets. Over the past suhing in improved spreads. Financing segment operating two years, GECS has been one of the largest purchasers of profit was also impacted by higher portfolio provisions for assets sold by RTC. Experience to date on value icalization losses, principally on the commercial real estate and highly of these assets has been at least as good as projections at leveraged transaction (111T) portfolios discussed in the the time of purchase. Investments in cal estatejoint ven-following pamgraphs, as well as by increased openting and tmes have been made as an integral part of original financ-administrative expenses related to asset growth.

ings as well as in conjunction with loan restructurings The portfolio of financing receivables. 559.4 billion and where management believes that continued investment

$55.8 billion at year-end 1992 and 1991,iespectively,is the in the underhing properdes would resuh in enhanced Financing segment's largest asset and the primary source icturns.

ofits n venues. Related allowanc es for losses aggregated 37

Foreclosed real estate amounted to $304 million and duced earning rec eivables increased to S429 million in

$278 million at the end of 1992 and 1991, respectively.

1992 from $356 million in 1991, loss prmisions for 1II.T At December 31,1992, the commercial real estate port-imestments were 5573 million in 1992 ($154 million of re-folio indudc-d loans secured by and im estments in a vari-ceivables and S419 million of other investment loss prmi-ety of property types that were well dispersed geographi-sions) compared with $328 million in 1991 and $410 mil-cally. Proper ty tvpes included apartments (40% ), offic e lion in 1990.

buildings (35% ), shopping centers (l4% ), and mixed use, GECS'otherfinandng truivables, in ext ess of $28 billion, industrial and other (11 % ). These properties were located consisted primarily of a diverse commercial, industrial and principally across the United States as follows - Mid-equipment loan and lease portfolio. This portfolio gr ew Atlantic (21 %), West (19% ), Northeast (17%), Southwest appioximately $4 billion during 1992,while nonearning (16%), Southeast (12% ), Central (8%) - with the remain-and ieduced earning receivables increased S22 million to der (7% ) across Canada and Europe. Nonearning and

$144 million at year end. As discussed in note 17, GECS reduc ed earning receivables declined to $361 million in has loans and leases to commercial airlines that aggr egated 1992 from 5512 million in 1991 - reflecting proactise about 56 billion at the end of 1992. A combination of management of delinquent receivables as well as write-offs.

GECS' underwriting standards, f requent portfolio quality Loss prmisjons for commercial real estate investments reviews intohing senior management, active asset manage-were $299 million in 1992 ($228 million of receivable loss ment and strong remarketing capabilities have kept losses provisions and $71 million of loss prmisions for other to nominal amounts. Although the airline industry contin-assets), compared with S213 million and $62 million in ued un go through a pt -iod of rationalization, at December 1991 and 1990, respectisely, as the portfolio continued to 31,1992, estimated fair values of aircraft collateralizing be ads ersely affected by the weakened commercial real these assets exceeded GECS' investment.

estate market.

= SpecialtyInsurunn operating profit of $641 million in HLTportfolio represents financing prmided for highly 1992 was 28% higher than the $501 million recorded in leseraged management buyouts and corporate recapital-1991, whic h was 10% higher than in 1990. The gains pri-izations.The portion of those investments <lassified as marily ieflected higher volume and imestment income at financing receivables was S5.3 billion at the end of 1992 GECS' private mortgage and financial guaranty insurant e and $6.5 billion at the end of 1991. The year-end 1992 businesses. Operating profit of ERC was basically flat dur-balance of amounts that had been written down to esti-ing the three-year period.

mated fair value and carried in other assets as a result of

= Securities BmherWealer (Kidder, Peabody) operating restructuring or in-substance repossesuon aggregated profit was $300 million in 1992 and S119 million in 1991.

$513 million (net of $224 million in allowances provided This S181 million increase reflected higher investment in 1992), a net decline of SS50 million from 1991. Such income (principally from fixed income and equity trading balances were carried at the lower of cost or estimated fair activities) as well as higher levels of imestment banking value. This decline from 1991 ieflects the ebert of 1992 activity.The growth in n venues was partially offset by high-foreclosure and consolidation into GECS of an operating er interest costs associated with funding increased trading company and 1992 loss provisions esul ting fiom deterio-positions as well as higher operating and administrative ration in the vahie of(ertain investments, partially offset expenses,imluding the current-year impact of certain liti-l by new addjuons*

gation settlements. Operating profit in 1991 followed a l

The llLT ponfolio at year-end 1992 included loans and lonf almut 554 million in 1990. Most aspects of 1991 I

investments in diversified industries: cable TV (28% of in~

uns improved from 1990, with significant contribu-o vestment), retail (19%), media (13%), commercial and in-tions from stronger fixed income and equity trading activi-dustrial (12%), financial services (10% ), health care (5%),

ties, higher transaction origination fees and increased re-food and beverage (5%), and broadcasting and other tail commissions.

(8%). These investments, which comprised approximatelv 100 accounts at year-end 1992, were widely dispersed Entering 1993, managernent believes that the disersity and throughout the United States and, to a lesser degree, stwngdi oWEW aw ts, a ng with vigilant auention to

• • "#E"*""P""""""'"

C""# F """ "

Canada and Europe. A substantial majority of this portfolio (76% ) was positioned at the senior debt level, providing changing economic environment.

greater collateral protet tion than subor dinated and equity positions. Even so, the portfolio was adversely aflected by 1992's stagnant economic climate. Noncarning and n~

j 38

t Management's Discussion of Financial Resources and Liquidity Overview Consolidatedtotalassets This discussi<m offinancial trsounts arulliquidity focuses on the Statement of Financial Position (page 28) and the (in billions) s200 Statement of Cash Flows (page 30).

Ihroughout the discussion,it is imponant to difleren-160 tiate between the businesses of GE and GECS. Although GE's manufacturing and nonfinancial senices actisities 720 imulte a variety of dif f erent businesses, their undeilying 88 characteristics are the development, prepamtion for mar-ket and the sale of tangible goods and senic es. Risks and 40 rewards are dhectly iclated to the ability to manage and finance those at tisities.

GECS' principal businesses prmide financing, insur-

~

ance and broker-dealer senices to third panies. The un-derlying (haracteristics of these businesses involve the management of financial risk. GECS' risks and s ewards Staternent of FinancialPosition - continuing operations stem from the abilities of its businesses to continue on a se-

= Marketablesecurit.es mrned at market comptise the leo.n e bas.is to des.ign and punide a w.de range of financial i

market-making, investing and trading portfoh.o of Kidder, senices in a competitive ma:Leiplace and to receive ade-Peabody and, to a lesser degree, investing and trading ac-quate compensation for stu h senices. GECS is not a, cap-tmues of. he S,pecialty Insurance businesses. The inct case t

tive f.mance company or a schicle for ff-balance-sheet o

to $24.2 billion at the end of 1992 from 517.9 billion at the f.mancmg for GE,; very little of GECS, busm.ess is d.u ectiv end of 1991 pn.no pally reflected higher levels of. govern-related to other GE. operations.

Despite the different business profiles of GE and GECS, ment securities held in connection with Kidder, Peabody's trading and mar Let-makmg activities.

the global commercial airh.ne mdustrv is one sigmficant example of an important source of business for both. GE

= Marketable senrities-otherfor each of the last two assumes financing positions primarily in support of engine years were mainly investment-grade debt securities held by sales wher eas GECS is a significant source of lease and loan GECS' Speciahy insuranc e segment in support of obli-financing for the industry (see details in note 17). Even g tions to policy holders.

during the cunem difhcult period in this historically cycli-

= Struritiespurrhased under agrerments to rrsell (reverse cal industrv, management believes that the financing posi-repurchase agreements) are related to the liability account tions are reasonably protected by collateral values and by entitled ' Securities sold under agreements to repurchase" its ability to control assets, either by ownership or by secu-(repm chase agreementsh The former typically represent rity interests.

highly liquid, shon-term investments of excess funds; the The fundamental different es between GE and GECS are latter, bonowing of su(h funds from others. The balances reflected in the measurements commonly used by inves-at the end of 1992 and 1991 (both assets and liabilities) tors, rating agencies and financial analysts. These differ-were solely those of Kidder, Peabody in connection with ences will become clearer in the discussion that follows its broker-dealer artisities. The curient-year incr case of with respect to the more significant items in the two finan-

$7.4 billion primarily reflected the use of these agreements cial statements.

to cover increased short securities imentory positions and Note 29 contains requit ed disclosures of fair values of fi-

' matched-book' transactions.

nancial instruments. For reasons stated in that note, man-

= GE's currrnt meimbics of $7.5 billion at December 31, agement believes that disclosed values should be viewed 1992,were about the same as the 57.6 billion at the end of only as supplemental information having s ery restrit ted 1991. Amounts due from customers were $5.3 billion at utility.

December 31,1992, and $5.7 billion at December 31, Cashflows and figuidity ofdimmtinued operations are dis-1991. " Turnover' was (i.9 times in 1992 compared with played in the accompanying financial statements separate-7.0 times in 199L (Turnover relates receivables to sales ly from data on continuing operations. Discontinued oper.

and is a measurement of asset utilization efficieng.)

ations generated $648 million and $275 million of cash in Af anagement believes that the overall condition of cus-1992 and 1991, respectively, principally from earnings and tomer receivables was satisfactorv at the end of 1992. Cm-reductions in ieceivables and imentotics.

rent rec civables other than amounts owed by customers 39

1 F

l I

)

are amounts that did not originate h om sales of GE goods principally to assets acquired for resale, including l

or senices. such as adv:mces to suppliers in (onnection mortgages held for resale associated with the mortgage-l with large contracts.

senicing businesses, and pm chases of real estate assets

= Inventories were $4.6 billion at the end of 1992 com.

from Resolution Trust Corporation.

pared with $5.3 billion at December 31.1991. Inventorv

= Totalbunvwings on a consolidated basis aggregated turnover was 5.3 times in 1992, up 0.6 turns from 4.7 times

$81.8 billion at December 31.1992, compared with $74.0 in 1991 and 1990. As with receivables turnmer, inventory billion at the end of 1991. The major debt-rating agencies turnover is a measurement of eflicient use of resources.

evaluate the fmancial c ondition of GE and of GE Capital Significant inventory decreases in 1992 were achieved in (GECS' major public borrowing entity ) differently because Aircraft Engines (redu(ed manufacturing cycle times) and of their distinct business characteristics. Using criteria l

Appliances (reduced order-to-deliven cvcle times). Last-in, appropriate to each and considering their combined first<mt (1.lFO) r emluations decreased $204 million in str ength, those major rating agencies continue to give the l

1992 compared with a decrease of $141 million in 1991 highest ratings to debt of both GE and GE Capital and an inc rease of S89 million in 1990. Included in these GE has agreed to make payments to GE Capital to the l

changes were decreases of $183 million, $111 million and extent necessag to cause GE Capital's consolidated ratio of l'

$15 million (1992.1991 and 1990, respectively) resulting cantings to fixed charges to be not less than 1.10. For the from lower inventog lesels. Thes e were modest overall years 1992,1991 and 1990 such ratios were 1.44,1.34 and j

price decreases in 1991 and 1992 compared with a price 1.31, respectively, substantially abm e the level at which pay-j increase in 1990.

out would be required. Tinee years advance notice is re.

e GECS'financingirreivables of $59A billion at year-end quired to terminate this agreement.

l 1992 were $3.6 billion higher than at December 31,1991.

GE's total borrowings were $6.9 billion at year-end 1992 These receimbles are discussed on page 37 and in no.e 14.

($3.5 billion short-tenn, $3A billion long-term), a decrease

= Npnfy, plant and cguipment (including equipmei..

of about $1.0 billion (principally long-term) from year-end 199 decrease was possible as a result of record cash leased to others) was $20A billion at December 31,19t2.

up $2.1 billion. GE's property, plant and equipment con-punided from operating acthities and reduced capital sists ofinvestments for its own productive use, whereas the expenditures. GE's total debt at the end of 1992 equaled largest element of GECS' investment is in equipment that is 22M of total capital, down 3.8 points from the end of l

19 iinel tionship of debt to total capitalis sound and provided to third parties on operating leases. Details by category ofinvestment can be found in note 15.

continues well within the range of what would be expected GE's total expenditures for new plant and equipment f a strong mdustnal enterpnse.

dming 1992 were $1 A billion, down $0.7 billion frmn GECS' total borrowings were $75.1 billion at December 31,1992, of which $53.2 billion was due in 1993 and $21.9 1991. The decrease was primarily attributable to lower ex-penditures ielated to capacity increases. Total expendi_

bimon was due in subsequent years. Comparable amounts t the end of1991 were: $66.4 billion total; $48.1 billion tures for the past five years were $9.9 billion, of which 28%

was to increase capacity; 24 % was to increase producthity; due within one year; and $18.3 billion due thereafter.

13% was to 1eplace and renew older equipment; 11 % was GECS' composite interest rates are discussed on page 37.

to support new business start-ups; and 24 % was for sut h other purposes as to improve research and development GE borrowings as a percent of total capitalinvested facilities and to provide for safety and environmental protection.

30 %

l GECS added $4.5 billion to its equipment leased to oth.

L crs dming 1992, including $1.5 billion through acquisi-24

(

tions of new affiliates or businesses.

1. 8

= Intangible assets were 59.5 billion at year-end 1992. The majority of this consolidated total was GE's int;mgibles, which were $6.6 billion, about the same as the end of 1991.

e Allotherassets totaled $16.6 billion at year-end 1992.

g up $2.4 billion from $14.2 billion a year earlier. The prin-cipal reason for GE's increase of $0.7 billion was the pre-o paid pension asset. GECS' increase of $1.8 billion r elates tsaa 1889 issa rest iss

' 40

1 A large portion of GECS' borrowings was commercial pa-Totalassets of GECS per ($42.2 billion and $38.8 billion at the end of 1992 and 1991, respecth ely). 51ost of this commercial paper is issued (in bilhons;

$175 by GE Capital. The aserage remaining tenns and interest rates of GE Capital's commercial paper were 34 davs and 140 3.579 at the end of 1992 compared v.ith 36 days and 5.13% at the end of 1991. GE Capital's ratio of debt to eq-705 uity (les erage) was 7.91 to 1 at the end of 1992 c ompared with 7.80 to I at the end of 199L This relationship is be-70 liesed to be sound and is appropriate for a highly rated fi-nancial senices enterprise.

35 Note 18 prmides details of short-term and long-tenn 0

borrowings.

1988 1989 1990 1991 1992 Statement of Cash Flows - continuing operations The Statement of Cash Flows (page 30) depicts cash flows additional manufacturing capacity continues to be r e-by hrce broad categories-operating activities,imesting duced becau e of relatively flat demand and aggressive activities and financing activities. Because cash manage-cycle-time improvement programs across the Company.

ment activities of GE and GECS are separate and distinct,it

' Based on past perfonnance and current expectations,in is more useful to review the separate cash flows statements combination with the financial flexibilitt that comes with than the consolidated statement.

the highest credit ratings, management believes that GE is in a sound position to continue making long-tenn invest-GE ments for future growth, including selective acquisitions GE's cash and equivalents aggregated $1.2 billion at the and investments injoint sentturs, to reduce current debt end of 1992. higher by S0.2 billion than at the end of 1991.

levels and to grow dhidends in line with earnings.

During 1992. GE generated S5.3 billion in cash from its operating activities, including $0.7 billion frem discontin-GECS ued operations. This prmided resources to pay $1.9 billio" GECS' primarpource of cash is financing acthities involv-in dhidends to share owners, to im est SL4 billion in new' ing the continued rollover of short-tenn borrowings and plant and equipment, to repurchase $1.2 billion of the appropriate addition of borrowings with a reasonable bal-Company's common stock and to reduce total debt by ance of matmities. Over the last three years, GECS' bor-

$1.0 billion. Management condnually evaluates financing rowings with matmities of 90 davs or less base increased by abernatives. Because of attractive short-tenn interest rates, gj 3fbillion. New borrowings of S35.6 billion having ma-it elected to mamtain relatively high short-term debt lesels, turities longer than 90 days were added during those years resulting, as in 1991,in an excess of current liabilities o er while $22.1 billion of such longer-term borrowings were ie-current assets.

tired. GECS also has generated significant cash from oper-Operating acihities are the principal source of GE's cash ating activities. $13.5 billion during the past thice years.

flows. Over the past three 3 cars, operating acthities have GFCS' principal use of cash has been investing in assets -

prmided more than $11.8 billion of cash. hincipal ongo-to growits businesses. Additions to fmancing recch' ables ing applications are imestment in new plant and equip-were $17.5 billion of the $38.4 billion GECS imested over ment ($5.5 billion total over the past three years) and pay-the past three years. During those years, GECS also invest-ment ofdividends to share owners ($5.4 billion total over ed $9.3 billion to acquire new businesses and $8.5 billion the past three years). In addition, the Company repur-in new equipment, principally for lease to others.

(hased and placed into urasun $4.8 billion ofits common With the financial flexibilitv that comes with excellent stock during the past threc years. GE plans to conclude its credit ratings, management b'elieves GECS is well posi-share epurchase program at $5 billion, whic h is expected tioned to meet the global needs ofits customers for capital to be reached by the end of the first half of1993. Expendi-and to continue providing GE share owners with good re-tures for new plant and equipment are expected to remain turns on their investment in GECS.

at about $1.5 billion for 1993 as the short-term need for 41

I t

Management's Discussion of Selected Financial Data I

f I

Selectedfmancialdata summarizes on the opposite page for emironmental pmposes have induded polh tion con-some data frequently requested about General Electric trol desices suc h as waste-water ucatment plants, ground-Company and prmides a ictord that may be useful for nw water monitoring desites, air strippers or separators, and siewing tr ends. The data are disided into three sections:

incinerators at new and existing facilities constructed or upper portion - consolidated infonnation; middle por-upgraded in the normal course of business. Consistent tion - GE data that reflect various conventional measun~

with GE's policies stressing emironmental responsibility, i

ments for industrial enterprises; and lower portion -

average annual capital expenditures other than for reme-l GECS data that reflect key information and ratios perti-dial pnjects are presently expected to range between $100 I

nent to capital senices. Except as noted, these comments million and $180 million mer the next two years.This lesel pertain only to GE's continuing operations.

is in line with existing les els for new or expanded programs GE's totaltrscarth and development expenditurcs were to build facilities or modify manufacturing processes to

$1,896 million in 1992 compared with $1,866 million the minimize waste and ieduce emissions.

previous year. Of the 1992 expenditures, $1,353 million The Company also is intoh ed in a sizable number of re-was Irom GE's own funds,an increase of $157 million from medial actions to clean up harardous wastes as required by 1991. Expenditures from funds punided from customers federal and state laws. Such statutes require that responsi-(mainly the U.S. gmernment) were $543 million in 1992, ble parties fund remedial actions regardless of fault,legali-

$127 million less than the year before. The Aircraf t En.

ty of original disposal or ownenhip of a disposal site. In gines, Medical Systems, Plastics and Power Systems busi.

1992, GE spent approximately $120 million on remedial nesses account for the largest share of GE's research and cleanups and related studies, about the same as was spent j

deselopment expenditures from both Company and cus-for such purposes in 1991. It is presently expected that re-j tomer funds. Expenditures in the discontinued Aerospace medial cleanups and related studies will require average businesses. not included in the above totads, amounted to annual expenditures in the range of $140 million to 1

$1.911 million and $2,188 million in 1992 and 1991, ns

$170 million over the next two yean.

sperthely, primarily from funds provided by customers.

It is difficult to estimate reasonably the level of emiron-(

GE's total backlog of finn unfilled orders at the end of 1992 mental expenditures bey ond two yean due to a number of f

was $25.4 billion. a slight decrease from S26.0 billion at uncertainties, including uncertainties about the status of t

I w, regul don, technologv, insurance coverage of GE vear-end 1991. Orders constituting this backlog may be canceled or defened by customers, subject in certain cases costs and infmmation related to individual sites. Subject to cancellation penalties.Conunents on unfilled orders for to dw fmegoingAnnpany management believes that cap-businesses with z elatively long manuf acturing cvdes can be ital expenditures and remedial actions to comply with the found in the discussion of Industrv Segments, which be-pr esent laws governing emironmental protecuon will not gins on page 33. About 437c of the 1992 total unfilled have a material erect upon GEs capital expenditures, i

orders was scheduled to be shipped in 1993 with most of canungs nmnpenure posnmn.

j the semainder to be shipped in the two years after that. For comparison, about 439 of the 1991 backlog was expected l

to be shipped in 1992. Backlog for the discontinued Aen*

I space businesses, not include.1 in the above totals, was

$5.8 billion and 56.7 billion at the end of 1992 and 1991, Consoli/ ed employment of continuing operations respectively.

atyearctd Regardingemimnmentalmattm, the operations of the Com-un thousands) 25g pany,like those of other companies engaged in similar businesses, involve the use, disposal and cleanup of sub-i 200 stances regma eu unuer emironmentai protecuon iaws.

In 1992, GE had capitrl expenditures of about $110 mil-lion for projects related to the emironment. The com-a parable amount in 1991 was about $135 million.These 7

., 100 amounts exclude expenditures for remedial actions,which are discussed in the next paragraph. Capital expenditures 50

, gu m,,

E Unnen Staws 0

1988 1989 1990 1991 1992

'42 I

. _. ~ - -.. _ _ _ _, _ _ _ _

SelectedFinancialData (Dollar amounts in mmions; per-share amounts in dollaro 1992 1991 1990 1989 1988 Gzneral Electric Cornpany and consolidated al5fiates Revenues

$ 57,073

$ 54,629

$ 52,619

$ 49,135 5 44,652 Eamings from continuing operations 4,305 3,984 3,889 3,503 2,984 Earnings from discontinued operations 420 451 414 436 402 Earnings before accounting change 4,725 4,435 4,303 3,939 3,386 Net earnings 4,725 2,636 4,303 3,939 3,386 Disidends declared 1,985 1,808 1,696 1,537 1,314 Earned on average share owners' equity 20.9 %

12.2 %

20.2 %

20.0 %

19.4 %

Per share Earnings from continuing operations 5.02 S

4.58 5

4.38 S

3.88 5

3.31 Earnings from discontinued operations 0.49 0.52 0.47 0.48 0.44 Earnings before accounting change 5.51 5.10 4.85 4.36 3.75 Net earnings 5.51 3.03 4.85 4.36 3.75 Disidends declared 2.32 2.08 1.92 1.70 1.46 Stock price range 87 % -72 % 78 % -53 75 % -50 64 % -43 % 47 % -38 %

Tot 2d assets 192,876 166,508 152,000 126,121 107,812 lxmg-term borrowings 25,376 22,681 21,043 16,110 15,082 Shares outstanding - average (in thousands) 857,198 868,931 887,552 904,223 901,780 Share owner accounts - average 481,000 495.000 506,000 526,000 529,000 Employees at year end l'nited States 173,000 178.000 188,000 192,000 200,000 Other countries 58,000 62 000 62,000 48,000 42,000 Discontinued operations (primarily U.S.)

37,000 44.000 48,000 52,000 56.000 Total employees 268.000 284.000 298,000 292,000 298,000 GE data Short-term borrowings S 3,448 5 3,482

$ 2,721

$ 1,696 5 1,861 Long-term borrowmgs 3,420 4,332 4,048 3,947 4,330 Minority interest 350 353 288 283 228 Share owners' equity 23,459 21,683 21,680 20,890 18,466 Total capital invested

$ 30,677

$ 29,850 S 28,737

$ 26.816 S 24,885 Return on average total capital invested 16.9 %

11.1%

17.4 %

17.0%

16.4%

Borrowings as a percentage of total capital invested 22.4 %

26.2 %

23.6%

21.0 %

24.9 %

Working capital (822) S (231) S 813

$ 2,125 5 2,251 Property, plant and equipment additions 1,445 2,164 2,102 2,073 2,079 Year-end orders backlog 25,434 26,049 25,195 22,473 20,147 GECS data Earnings before accounting change

$ 1,499

$ 1,275 5 1,094 5

927 5

788 Net earnings 1,499 1,256 1,094 927 788 Share owner's equity 8,884 7,758 6,833 6,069 4,819 Earned on average share owner's equity 18.0%

17.0 %

16.6 %

17.6%

18.0 %

Bore > wings from others

$ 75,140

$ 66,420

$ 57,400 5 47,905 5 39,593 Ratio of debt to equity (GE Capital) 7.91:1 7.80:1 7.77:1 7.80:1 7.67:1 Total assets of GE Capital 6 92,632 5 80,528

$ 70,385 5 58,696

$ 47,766 Reserve coverage on financing receivables 2.63 %

2.63 %

2.63 %

2.63 %

2.63 %

Insurance premiums written S 2,900

$ 2.155 S 1,981 S 1,819 5 1,809 Securities broker-d aler earned income 4,022 3,346 2,923 2,897 2,316 Prior-period data base been retlassihed when necessarT, for discontinued operations. See note 6 to the consohdated financial statements for information about the 1991 accounting c hange. "GE' means the basis of consolidation as described in note I to the e omobdated financial statements;"GECS" means General L.lectnc Capital Services. Inc (formerly General Lict tric I~mancial Services. Inc.) and all of its affiliates and anociated c ompanies. Transactions between GL and GECS have been climinated from the 'consohdated information."

43

1 Management's Discussion of Financial Responsibility The financial data in this report, including the audited fi-siew activities such as those conducted by the Company's nancial statements, have been prepared by management Polier Complianc e Resiew Iloard are designed to create a using the best available information and apphingjudg-strong compliance culture - one that encourages em-ment. Accounting principles used in preparing the finan-ployces to raise their policy questions and (oncerns, and cial statements are those that are generally accepted in the prohibits retribution for doing so.

i United States.

KPMG Peat Marwick prmide an objec tive, independent Management believes that a sound, dynamic system of iesiew of management's discharge ofits obligations relat-internal financial controls that balances benefits and costs ing to the f airness of reporting operating results and fi-prmides the best safeguard for Company assets. Profes-nancial condition. Their report for 1992 appears below.

f sional in.ancial managers are responsible for implement-The Audit Committee of the lloard (consisting solely of

{

ing and overseeing the financial control system, reporting Directors from outside GE) maintains an ongoing ap-on management's stewardship of the assets entrusted to it praisal-on behalf of share o vners-of the adequacy of 7

by share owners and maintaining accurate records.

internal financial controls, the activities and indepen-GE is dedicated to the highest stand.uds ofintegrity, dence of the independent auditors and the activities of the ethics and social iesponsibility. This dedication is reflect-Company's internal audit staff. This conunittee also re-ed in written policy statements covering, among other sub-views the Company's financial reporting process and com-jects, emironmental protecion, potentially conflicting pliance with key Company policies.

outside interests of employees, compliance with antinust I

/

h smto laws, proper business practices, and adherence to the

~

w-l I'

~

highest standards of conduct and practices in transactions with the U.S. government. Management continually em-pn r3'ch h@

Dennim D.-man phasizes to all employees that even the appearance ofim-Chairman of the Nard and henior Vit r hesidern propriety can erode public confidence in the Company.

Chief hecutiw ower rinance Ongoing education and communication programs and re-Februar> lt um s

IndependentAuditors' Report To Share Owners and Board of Uirectors of mates made by management, as well as evaluating the GeneralElectric Company overall financial statement presentation We believe that our audits prmide a reasonable basis for our opinion.

We have audited the accompanying statement of financial In our opinion, the aforementioned financial statements position of General Electric Company and consolidated appearing on pages 26-31 and 62 present fairly,in all affiliates as of December 31,1992 and 1991, and the relat-material respects, the financial position of General Elecuic ed statements of earnings and cash flows for each of the Company and consolidated affiliates at December 31,1992 l

years in the thr ee-year pt-riod ended December 31,1992.

and 1991, and the results of their operations and their cash These comolidated financial statements are the responsi-flows foi cach of the years in the three-year period ended bility of the Company's management. Our responsibility is December 31,1992, in conformity with generally accepted to express an opinion on these consolidated financial accounting principles.

j statements based on our audits.

As discussed in note 6 to the consolidated financial state-We conducted our audits in accordance with generally ments, the Company (hanged its method of accounting accepted auditing standards. Those standards require that for postretirement benefits other than pensions in 1991.

we plan and perform the audit to obtain reasonable asstu-h/

M thfurhb ance about whether the financial statements are free of material misstatement. An audit includes examining, on a l

test basis, esidence supporting the amounts and disclosures KPMG Peat MarwirL l

in the financial statements. An audit also includes assess-htamford. Connec ticut ing the accounting principles used and significant esti-rebmarr it um 44 f

i l

• s Notes to Consolidated Financial Statements 1

Note Summary of Significant Accounting Policies Operating lease income is recognized on a straight-line basis over the term of underlying leases.

4 Conwlidation. The consohdated financial statements rep.

Origination, commitment and other nom efundable fees resent the adding together of all companies in which Gen-related to fundings are deferred and recorded in earned eral Electric Company directly or indir ectly has a majority income on the interest method. Commitment fees related ownership or otherwise controls ("afTiliated companies').

to loans not expected to be funded and line-of-credit fees Reaults of companies that are 20% to 50% owned by GE or are deferred and recorded in earned income on a straight-

)

General Electric Capital Senices. Inc. (GECS). fonneily line basis over the period to which the fees relate. Syndica-

)

i General Electric Financial Senices, Inc., are included in tion fees are recorded in earned income at the time related the financial statements on a "one-line" basis (" associated services are perfonned unless significant contingencies companies"). Results of the Aerospace and certain other exist.

businesses which ate under agreement to be transferred to Premiums on short-duration insurance contracts are a new company controlled by the share owners of Martin reported as earned income over the tenns of the related l

Marict:a Corpomtion have been classified as discontinued reinsumnce treaties or insurance policies. In general, operations (see note 2).

carned premiums are calculated on a pro rata basis or are j

Financial statement presentation. Financial data and related determined based on reports received from reinsureds.

l measurements are presented in the following categories.

Premium adjustments under retrospecthely rated reinsur-ance contracts are tecorded based on estimated losses and a GE (also nferred to as "GE ex<rpt GECS"). This repre-1 pemes, including both case and incurred-but-not-sents the adding together of all affiliated companies except reported resen es. Revenues on long-duration contracts GECS, which is presented on a one-line basis.

are reported as carned when due.

Kidder, Peabody's proprietary securities and cominodi-l

. GECS. This affiliate owns all of the common stock of Geneml Electric Capital Corporation (GE Capital), Em-ties transactions, unrealized gains and losses on open con-ployers Reinsurance Corporation (ERC) and Kidder.

tractual commitments (principally financial futures), for i

Peabody Group Inc. (Kidder, Peabody). These affiliates ward contracts on U.S. government and federal agency i

and their respective alliliates are consolidated in the GECS securities, and when-issued securities are recorded on a i

columns and constitute its business.

trade-date basis. Customer transactions and related reve-l

• Consolidated. Thes" data represent the adding nues and expen es, investment banking revenues from i

together of GE and GECS.

management fees, sales concessions and undentriting fees The effects of tansactions among related companies are recorded on a settlement-date basis. Advisory fees are within and between each of the above-mentioned groups recorded as revenues when senices are substantiallycom-

]

are eliminated. Transactions between GE and GECS are pleted and the revenue is reasonably determinable.

not material.

Depnciation and amortization. The cost of most of GE's 4

Reclassification. Prior-period data shown in the financial manufacturing plant and equipment is depreciated using statements and the related notes have been reclassified, as an acceletated method based primarily on a sum-of-the-

]

appropriate, to reflect discontinued operations.

years digits formula. If manufacitning plant and equip-l l

Sales ofgoods and scrrices. A sale is recorded when title pass-ment is subject to abnormal economic conditions or obso-es to the customer or when senices are performed in ac.

lescence, additional depreciation is pnnided.

l cordance with contra ( ts, The cost of GECS' equipment leased to others on oper-GECS* rrvenuesfrom opemtions (*carned income"). Income ating leases is am rtized, principally on a stmight-line ba-on all loans is recognized on the interest method. Accrual sis, to estimated net sah age value over the lease term or ofinterest income is suspended when collection of an ac-ver the estimated economic life of the equipment. De-count becomes doubtful, generally after the account be-preciation of property and equipment for GECS own use comes 90 days delinquent.

is recorded on either a sum-of-the-years digits funnula or a Financing Icase income which includes investment tax straight-line basis over the lives of the assets.

credits and residual values is recorded on the interest Remgnition oflosses unfinancing rrceivables and imestments.

method so as to produce a level yield on funds not yet re-GE Capital maintains an allowance for losses on financing mer ed. Unguaranteed residual values included in lease receivables at an amount that it believes is sufficient to pro-income are based primarily on independent appraisals of vide adequate protection against future losses in tne port-

)

the values ofleased assets remaining at expintion of the folio. Collateral that is fonnally or substantively repos-i' lease terms.

sessed in satisfaction of a loan ecchable is written down 45 i

i t

.r,-

. ~....

y, c-

~,m

,__m-,--.___

-e.~,...--.~

r t

against the allowances for losses to estimated fair value and Deferred insurance acquisition costs. For the property and transferred to other assets. Subsequent to such transfer, casualty business, these costs are amortized as the related these assets are canied at the lower of cost or estimated premiums are earned. For the life insurance business, current fair value. This accounting has been employed these costs are amortized over the premium-paying periods y

principally for highly leveraged transactions (llLT) and of the contracts in propordon either to anticipated premi-l real estate Icans.

um income or to gross profit, as appropriate. Deferred m-p See note 8 for further infonnation on GECS' allowance surance acquisition costs are reviewed for recoverability; for losses on financing receivables.

for short-duration contracts, anticipated investment in-Cash equirialents. Marketable securities whh original maturi.

come is considered in making recoverability evaluations.

}

ties of three months orless are included in cash equiva-lents unless held for trading or investment.

MarketaMe securities. Marketable securities of Kidder, Peabody are held for trading and canied at market value Note Discontmued 0perations with the difference between cost and market value includ-ed in operations. Other marketable securities held at j

December 31,1991, by all other GECS affiliates, principal.

On November 23,1992, General Electric Company and ly debt securities held'bv insurance affiliates, were intend-Mardn Marietta Corporation (MMC) announced that they i,

l cd to be held to maturith and were accounted for at amor-had reached a definitive agreement under which GE's

[

l tired cost. At December 31.1992, certain such securities Aerospace business segment: GE Government Semces, i

were classified as available for sale as described in Note 11.

InC-; and an Perating component of GE that operates

[

Accounting for investments in debt securities is presently Kn lls At mic Power Laboratory under a contract with the

[

under resiew by the Financial Accounting Standards U S Department of Energy are to be transferred to a new

.j Board. Pending further authoritative guidance on such Company controlled by the share owners of MMC. The transacdon, which has been valued at $3.05 billion, has accounting, marketable debt securities held by insurance affiliates that are available for sale are recorded at the low-been approved by both MMC's and GE's Boards of i

er of aggregate cost or market. Marketable equity securi-Directors and, subject to government review and the.

[

iies held by insurance affiliates are canied at market value.

approval of MMC share owners,is expected to close l

Unrealize[1 gains or losses on marketable equity securities during the first half of1993.

j l

and unrealized losses on marketable debt secmities,less Net assets of discontinued operations have been segre-applicable deferred taxes, are recognized in equitv. An gated in the Statement of Financial Position. Summary op-

[

unrealized loss determined to be other than temporary is erating results of discontinued operadons are as follows.

recognized in operations.

On mimons) 1992 1991 1990 j

secuntiespurchased underagrrements to ursett (rrrme repur.

g,,,,,,,

,,,,3,

,,,s,,

,5,ggo dase agirements) and securities sold under agrrements to re-Earnings before income taxes 668 710 662 purrhase (repurrhase agreements). Repurchase and reverse Provision for income taxes 248 259 248 l

repurchase agreements are treated by Kidder, Peabody as Net earnings from discontinued "P#I" 4"

financing transactions and are carried at the contract j

amount at which the securities subsequently will be resold j

or reacquired. Repurchase agreements relate eithet to marketable securities, which are carried at market value, i

or to securities obtained pursuant to reverse repurchase agreements. It is Kidder, Peabody's policy to take posses-Note GE Otherincome sion of securities subject to reverse repurchase agree-l ments. Kidder, Peabody monitors the market value of the (In mimom) 1992 1991

-1990 underlying securitiesin relation to the related receivable, including accrued interest, and requests additional collat.

Royalty and technical cralif appropriate.

. greements

$384

$394

$336 3

Associated companies.

'195 156 93 Imentories. Virtually all of GE's U.S. inventories are stated Marketable securities and bank on a last-in, first-out (ilFO) hasis; international invento-dcPosits 73 78

- 84 ries are primarily stated on a first-in, first-out (FIFO) basis.

Customer financing 40 71 36 Other investments 3

None of the inventories exceed tealizable values.

Interest 22 18 13

~

IntangiMe assets. Goodwill is amortized over its estimated Dividends 18

__ 3 4

period of benefit and other intangible assets over their esti_

Other sundry items 80 78 136 l

$s12

$ns

$702 mated lives. The amortization period does not exceed 40

years, and amortization is generally on a straight-line basis.

r 46 i

. t

Note E GECSRevenues from Operations Note w PensionandOtherRetiree BeneSts i

M nd its afliliates sponsor a number of pension, retircc i

on milik no Iwr am tw 1

health and life insurance and other rethee benefit plans.

l Time sales. loan, im esunent Principal plans ar e discussed below; other plans are not and other inc ome

$10A64 5 9,790 S 9,192 significant individually or in the aggiegate.

Financing leases 2.151 1.836 1 Am Operating lease rentals 2A44 2,205 1,806 The 1991 anvunting change was to implement Staiement hemium and < onunission of Financial Accounting Standards (SFAS) No.106-i

• Employers' Accounting for Posuetirement Benefits Other C r issi s 1

semrities broker-dealer 694 560 449 Than Pensions' using the immediate recognition transi-S18A40 516.399 514,774 tion option, effective as ofjanuary 1,1991.

SFAS No.106 requires recognition, during employees' included in camed itx ome from financing 1 cases were senice with the Company, of the cost of their retiree gains on the sale of equipment at lease completion of health and life insurance benefits. AtJanuary 1,1991, the l

$126 million in 1992, S147 million in 1991 and $93 million accumulated postretirement benefit obligation was 54,287 in 1990.

million; however, $1,577 million of this obligation had Noncancelable future renuds due from customers for been prmided through the fair market value of related equipment on operating leases as of December 31,1992, trust assets ($1,037 million) and iecorded liabilities ($540 i

totaled $5,538 million and are due as follows: $1,747 mil-million), resulting in a pretax adjustment (i.e., transidon lion in 1993; $1.407 million in 1994; $816 million in 1995; obligation) of $2,710 million. The effect on net earnings S402 million in 1996; $280 million in 1997; and 5886 mil-and share owners' equity was 51,799 million ($2.07 per lion thereafter.

share) after deferred tax benefit of $911 million. Aside Amortization of defen ed investment tax credit was from the one-time effect of the adjustment, adoption of

(

$26 million in 1992, $25 million in 1991 and 534 million SFAS No.106 was not material to 1991 financial resuhs.

in 1990 Prior to 1991, GE health benefits for eligible retirees under age 65 and cligible dependents were generally included in costs as covered expenses were paid. For eligi-

[

ble retirees and spouses over age 65, the present value of futur e heahh benefits was included in costs in the year the Note SupplementalCost Details

etiree became eligible for benefits. The present value of future life insuranc e benefits for eac h eligible retiree was j

Companyfunded researt h and development aggregated included in costs in the year of retirement.

i 51,333 million in 1992,51,196 million in 1991 and $1,261 Principalpensionplans are the GE Pension Plan and the million in 1990.

GE Supplementary Pension Plan.

Rental expense under operating leases was as follows.

The GE Pension Plan covers substantially all GE em-On mimno Iwe 19m two ployees in the United States and approximately 509 of GECS employees. Generally, benefits are based on the ecognizing career earnings or a for-pea nnu Cs 1

mula recognizing length of senice and final average earn-At December 31,1992, minimum rental commitments ings. Benefit provisions are subject to collectise bargain-under noncancelable operating leases aggiegated $2,502 ing. At the end of1992, the GE Pension Plan covered million and $3,124 million for GE and GECS, respectively.

approximately 494,000 participants, including 191,000 Amounts payable over the next five years are as follows.

employees,132,000 former employees with sested rights to future benefits, and 171,000 retirees or benenciaries g

g g

g g

g recemng benefits.

GL

$431

$337

$243 5149 5110 The GE Supplementary Pension Plan is an unfunded GECS 341 309 286 27.e 258 plan providing supplementag retirement benehts primar-GE's selling, general and administrative expense totaled ily to higher-level, longer-senice professional and manage-

$5,319 million, $5,422 million and $5,262 million in 1992, rial employees in the United States.

j 1991 and 1990, respectively.

Principalrrtirre berufitplans generally provide health and life insurance benefits to employees who redre under the l

GE Pension Plan with 10 or more years of senice. Benefit provisions are subject to collectice bargaining. At the end 47 l

I l

of 1992, the plans cover ed approximately 241,000 tetirees and management's expectation that future rate,s will de-I and dependents.

cline. Incr easing the health care cost trend mies by one Dismntinued operations - pension plan assets are expected percentage point would inct ease the accumulated post-to be transferred to new pension plans in conjunction with ietirement benefit obligation by $50 million and would the discontinued operations. The amount of the transfer increase annual aggregate senice and interest costs by l

will be based on, among other 'hings, the employees who 55 million. In connection with its 1993 annual funding actually transfer. Amounts relating to the discontinued op.

review, GE may revise c ertain actuarial assumptions j

erations have not been fully segregated in the following elfectivejanuary 1,1993; however, it is anticipated that discussion, any sut h revisians would increase benefit obligations by no nmre than 5%.

Employer costs for principal pension and retiree health and life insurance beneh.t plans follow.

Gams and losses that occur because actual experience difTers from actuarial assumptions are amortized over the Cost (incomelforpensionplans average future senice period of employees. Amounts allo-On miluons) 1992 1991 1990 cable to prior senice for plan amendments are amortired in similar manner.

Benefit cost for senice during the year - net of employee Fundingpolicy for the GE Pension Plan is to contribute contributions

$ 494 $ 446 $ 425 amounts sutTicient to meet minimum funding require-Interest cost on benefit obligation 1,502 1,400 1,315 rnents set forth in employee benefit and tax laws plus such Actual return on plan assets (1,562) (4,331) 260 Unrecognized ponion of return (584) 2,272 (1,988) addm.,onal amounts as GE may detennine to be appmpri-Amortiiation (436)

(483)

(392) ate from time to time. GE has not made contributions Pension cost (income) (a)

$ (586) $ (696) $ (380) since 1987 because the fully funded status of the GE Pen-sion Plan precludes current tax deduction and because any (a) Pension cost Omome) for continuing operatiom was $(494) million for 1992. $(576) million for 1991 and $(293) milhnn for 1990.

Gmpany contribution would require the C,ompany to pay annual excise taxes. The present value of future life insur-ance benefits for each eligible retiree is funded in the year l

Cost (income) for retiree health end life plans of retirement. In general, retiree health benefits are paid as on miinom) 1992 1991 covered expenses are incurred.

Retiree health plans The following table compares the market-related value Benefit cost for senice during of assets with the present value of benefit obligations, rec-the year-net of retiree ognizing the effects of future compensation and senice.

l g['l, '"f]r benefit obligation The ma:Let-relateu mlue of assets is based on cost plus 2

2 Actual retum on plan awets (4)

(9) recognition of markes ?ppreciation and depreciation in Umecognized portion of return 5

the portfolio over five years, a method that redures the im-Amortization (40)

(33) pact of short-term market fluctuations.

Retiree A 2hh cost (b)

$ 221

$242 fundedEtstus of rincipsiplans P

Retir ce life plans December 31 On millions) 1992 1991 Benefit cost for senice during l

the year 5 24

$ 23 I""'I"" P ""'

I Intere'st cost on benefit obligation 110 104 Market-related value of assets

$24,204

$23.192 Actual return on plan assets (78)

(129)

Pmiened benent obligation 17,999 17,355 Unrecognised portion of return (20) 39 I

Amortii.ation 2

Retirce health and life plans l

l Market-related value of assets.

1,220 1,124 Retiree life cost (b)

$ 38

$ 37 Accumulat-d postretirrment benefit i

(b) Retiree health and life cost for continuing operatiam was $213 milhon for 1992, $218 milhon for 1991 and $208 million for 1990.

Schedules reconciling the benefit ol> ligations for princi-Actuarialassumptions used to determine 1992 and 1991 p 1 plans with GE's recorded liabilities in the Statement of costs and benefit obligations for principal plans include Financial Position are shown on the following page.

j l

.a discount rate of 9.0% (8.5% for 1990) and an average l

rate of future mcreases m benefit compensation of 6.0%

l (6.5% for 1990). Recognized. return on plan assets for 1992 and 1991 was determined by applying the expected long-term rate cf return of 9.5% (8.5% for 1990) to the market-related value of assets. The assumed rate of future i

increases in per capita cost of health care benefits (the j

health care cost trend rate) was 13.0% for 1991, decreasing to 12.5% for 1992 and gradually decreasing to 6.6% for the year 2050. These trend rates reflect GE's prior experience i

48 i

t

R:co.Tcili: tion of benefit cblig: tion with ricordidlimbility Pension Retisce health Reurer life Dett'mber 31 (In milbom) 1992 1991 1992 1991 1992 1991 Benefit obligation

$ 17,999

$17.355

$ 2,416 5 2,414 5 1.327

$ 1,261 Fair value of trust assets (26,466)

(26.133)

(32)

(50)

(1.221)

(1,121)

Unamortired balances SFAS No. 87 transition gain 1,231 1,385 Experience gains (losses) 4,939 5.784 (394)

(364)

(21) 13 Plan amendments (518)

(577) 764 829 Rewrded prepaid asset 3.310 2.65' Recor ded liability S

495 5 471

$ 2.754

$ 2.829 5

85

$ 153 The portion of the projected benefit obligation repre-senting the accumulated benefit obligation for pension plans was $16,975 million and $16,362 million at the end of 1992 and 1991, respectively. The vested benefit GECS Allowance for Losses on Financing N###b8 ##

obligation for pension plans was $16,799 million and

$16,214 million at the end of 1992 and 1991, respectively.

Details of the accumulated postretirement benefit obli.

GECS allowance for losses on financing receivables repre-gation are shown below.

sented 2.63% of total financing receivables at year-end 1992 and 1991. The allowance for small-balance receivables h*,$"g"f,##'#[,[f,"#'I'#"'#"'

is determined principally on the basis of actual experience f

December 31 On muhom) 1992 19m during the preceding three years. Further allowances are pro ided to reflect management'sjudgment of additional i s

$1.789

$1,756 1 ss p tential. For other receivables, principally the larger Employees ehgible io retire 137 152 loans and leases, the allowance forlosses is determined pri-Other employ ees 490 506 marily on the basis of management'sjudgment of net loss

$2.416 52.414 potential, including specific allowances forknown troubled Retiree life plans accounts.The table below shows the arthityin the allowance Retirees S 907

$ 849 for losses on financing receivables during each of the last Emplo>ces eligible to retire 83 91 three years.

Other employees 33, 321

$1.327 SL261 On milhons) 1992 1991 1990 Unamortired balances for amendments mclude the ef-Balance atJanuary 1 5 1.508 5 1,360~

$1,127 Provisions charged to fects of changes in pension and retiree health plan provi-operations 1,056 1,102 688 sions during 1991.

Net transfen related to Assets in trust consist mainly of common stock and companies acquired or sold 52 135 230 Announts wrinen R-net m

0.W9)

(6W fixed income investments. GE common stock iepresents Balance at Det ember 31

$ 1.607 5 U,W

$1,360 about 1 % of trust assets and is held mainly in an indexed portfolio.

All accounts or portions thereof deemed to be uncollec-tible or to require an excessive collection cost are written off to the allowance for losses. Small-balance accounts are 7 Interest and Other Financial Charges progressively written down (from 10% when more than three months delinquent to 100% when 9-12 months Note delinquent) to record the balances at estimated realizable GE. Interest capitalized, principally on major property' value. If at any time during that period an account is judged to be imcollectible, such as in the case of a hank-plant and equipment projects, was $29 million m 1992'

$33 million in 1991 and $26 million in 1990.

ruptcy, the uncollectible balance is witten off. Large-

~

balance accounts are eviewed at least quatterly, and those GECS. Interest and discount expenses reported in the accounts that are more than three months delinquent ate Statement of Eamings is net ofinterest income on tempo-written down,ifnecessary, to record the balances at estimat-rary investments of excess funds ($48 million, $54 million ed realizable value. Anmunts written offin 1992 were ap-and $104 million in 1992,1991 and 1990, respectively) and proximately 1.58% of average financing receivables out-capitalized interest ($6 million, $8 million and $20 million standing during the year, compared with 1.87% and 1.37%

in 1992,1991 and 1990, respectively).

of average financing receivables outstanding during 1991 and 1990, respectively.

49 i

l l

Estimated amounts payable includes amounts applicable 9 Provision forIncome Taxes to non-U.S. jurisdictions of $187 million, $209 million and

$184 milli n in 1992,1991 and 1990, respecthely.

Note GE includes GECS in filing a consolidated U.S. fedem!

income tax return. GECS' prmision for estimated taxes (In milhom) 1992 1991 IWO papable (recoverable) includes its eflect on the consolidat-ed return.

GE Estimated amounts payabic

$ 697

$ 1.088 51,196 Statement of Financial Accounting Standards (SFAS) i Defened tax expense f rom No.109

" Accounting for Income Taxes" was adopted

)

temporary differences 762 311 139 effectiveJanuary 1,1992. The effect of adopting this new investment credit deferred standattl was not material.

(amonized) - net (27)

(39)

(40) 1.432 b360 1.295 Deferred income tax balances reflect the impact of tem-GECS Porary differences between the carning amount of assets Estimated amounts parable and liabilities and their tax bases and are stated at tax rates (s ec overable) 374 (192) 168 expected to be in effect when taxes are actually paid or re-Delerred tax expense from covered. See note 23 for details.

temporary differences 16.,

a5a.

133 Investment credit deferred Except for earnings that GE intends to reinvest indefi-(am irtized) - net (5) 19 nitely, prmision has been made for the estimated U.S. fed-536 382 301 eral income tax liabilities applicable to undistributed earn-Consolidated ings of affiliates and associated companies.

Estimated amounts parable 1.071 896 1,364 Based on kication (not taxjurisdiction) of the business prmiding goods and senices, consolidated U.S. income i porar f rr s 929 866 272 Investment credit deferred before taxes was $5,639 million in 1992, $5,034 million in (amortired) - net (32)

(20)

(40) 1991 and $4.789 million in 1990. The corresponding

$ 1.968 S1,742 51.596 amounts for non-U.S. based operations were $634 million in 1992, $692 million in 1991 and $696 million in 1990.

Reconciliation of U.S. federal Omsalidated GL GTCs stxtutory rate to actualtax rate 1992 1991 1990 1992 1991 1940 1992 1991 1990 Statutory U.S. federal income tax rate 34.0 %

34.0 9 34.0 %

34.0 9 34.09 34.0 %

34.0 %

34.0 % 34.0%

Increase (reduction) in rate resulting from:

Inclusion of aber-tax carnings of GECS in before-tax earnings of GE (8.9)

(8.1)

(7.2)

Foreign Sales Corporation tax benefits (1.1)

(1.1)

(1.1)

(1.2)

(1.2)

(1.2)

Amortization of imestment tax credit (0.6)

(0.9)

(0.9)

(0.5)

(0.7)

(0.8)

(0.6)

(0.7)

(1.0)

Tax-exempt income (2.6)

(2.9)

(3.1)

(8.1)

(10.1) (12.1)

Amortization of goodwill 1.3 1.4,

1.3 0.9 1.0 0.9 1.4 1.6 1.6 Dividends received not fully taxable (0.3)

(0.4)

(0.7)

(1.0)

(1.3)

(2.6)

All otber-net 0.7 0.3 (0.4 )

0.7 0.4 (0.7) 0.6 (0.4) 1.6 (2.6)

(3.6)

(4.9)

(9.0)

(8.6)

(9.0)

(7.7)

(10.9)

(12.5)

Actual income tax rate 31.4 %

30.4 % 29.1 %

25.0 % 25.4 % 25.0%

26.3 %

23.1 % 21.5%

foMarket At December 31,1992, the carrying value of equity secu-GECS Marketable Securities Carried at rities held by insurance affiliates and catried at market value aggregated $1,505 million (S.1.126 million in 1991).

Note Tl'ese amounts included umealized gains of $131 million

($70 million in 1991) and unrealized losses of $37 million Derember 31 (In milhom) 1992 1991

($51 mtib.on m 1991), respectively, recognized in equity.

U.S. government and federal agency A significant portion of securities carried at market val-securities

$16.172 511.597 ue at December 31,1992, was pledged as collateral for Coryx r i stocks, bonds and non-U.S.

bank loans and repurchase agreements in connection with Mortgage loans 974 910 securities broker-dealer operations.

State and municipal securities -

1.048 719 S24.154

$17,850 50

I 4

Contractual maturities of marketable debt securities, oth-11 Marketable Securities-Other er than mortgage-backed securities, at December 31,1992,

' hh"*" b"*-

Note GECS contractualmaturities Carning value of marketable securities held by GE, other (mluding monpage-backedsemhiesJ ruimated Can ymg fair than GECS, was substantially the same as fair value at yeat-(In minions) vaue value end 1992 and 1991.

U]6 At December 31,1991, GECS canied its imestment in 52,701 52,710 the portfolio of man ketable secmities, other than those 3994 1997 1,632 1,709 included in note 10, at amortiicd cost based on manage-1998-2001 1,257 1,320 inent's ability and intent to hold such securities to maturity.

2002 and later 5,388 5,643 Most of these securities are held by businesses in the GECS It is expected that actual maturities will differ from con-Specialty Insurance segment. At December 31,1992, al-tractual maturities because some borrowers have the right though there was no intent to sell these securities, manage-to call or p pay obligations with or without call or pre-ment acknowledged that, for a portion of this portfolio, payment penalties. Proceeds from sales of debt securities sale may be an appropriate future response to changes in in 1992 were $3,514 million ($2,814 million in 1991 and evaluations of issuers. changes in inter est rates, cash re-

$1.647 million in 1990). Gross realized gains were $171 mil-quirements. tax positions or other fac tors. In order to lion in 1992 ($106 million in 1991 and $70 million in 1990).

reflect this potential, S9.033 million of these marketable Gross realized losses were $4 million in 1992 (S9 million debt securities were classified in 1992 as securities available in 1991 and S4 million in 1990).

for sale. Consequently, at December 31,1992, such securi-ties weie accounted for at the lower of aggregate cost or market. The balance of the portfolio was canied at amor-tired cost. Certain infonnation about GECS' marketable debt securities follows.

Note GE Current Receivables GECS marketable debt securities 1.stimated Grow Gniss Carning fair unreahied unreahied Drumber 31 (In millions) 1992 1991 tln ernllions) value value-gains (a) lowes (a)

Aircraf t Engines

$2,047 52,159 December 31,1992 Appliam es 446 487 State and municipal Broadcasting 463 433 securities S 6.626 S 6,951 5339 S(14)

Industrial 1,150 1,232 Corporate, non-U.S.

Siaterials 719 753 and other securit es 4.097 4.167 70 Power Systems 1,389 1,315 U.S. gmernment and Technical Products and Senices 696

,26 federal agency All Other 232 266 sectuities 255 264 10 (1)

Corporate 498 379 Mortgage-bac Led 7,640 7,750 securities 246 252 7

(1)

Irss allowance for losses (178)

(181)

$11.224 S11.631 5426 S(16) 57.462

$ 7,569 December 31,1991 State and municipal During 1 92xenain intematmnal ret enabbermedanified to reflect

• "' " '"4 'h ""

• PI" "P"I I"d "" '"K*""' D redawif ed to conform wnh the 1992 presentauon '"' l991 h*'"""""

secmities 5 5,978

$ 6.266

$289 5 (1)

Corporate, non-U.S.

and other securities 1,548 1.559 13 (2)

U.S. government and Of the total receivables balance,55.284 million and federal agency

$5,692 million were from sales ofgoods and senices to cus-securities 267 281 14 tomers, and $170 million and $169 million were from Mortgage-bac Led transactions with associated companies at December 31, securirim 137 145 8

1992 and 1991, respectivelv.

S 7.930 S 8.251 5324 S (3)

Current ieceivables of $h56 million at year-end 1992 and (a) December 31.1992, amounts inaude gr ow unrealized gains and losse, 5311 million at year-end 1991 arose from sales, principally of 532 minion and 55 milhon, respectnely. on ma Letable debt secuii-of aircraft engine goods and senices, on open account to t es carried at amortired c ost.

Various agencies of the U.S. government, which is GE's largest single customer (about 9% of GE's sales of goods and senices were to the U.S. gmernment in each of the last three yeais). At December 31,1992 and 1991, $651 million and $688 million, respectively, of current recch ables were from sales on open arxount of aircraf t engine goods and senices to airline industry customers.

51

i l

1 sales and loans carried at the principal amount on which 13GEinventories finance charges are billed periodically, and time sales and loans acquired on disc unt h sis carried at gross book Note value, w hich includes finance charges. At y ear-end 1992 and 1991, specialiicd financing loans included $10,526 Dnember 31 (in mmumu Iw2 iwl million and $10,427 million, respecthely, Ior commercial Raw materials and work in pimess

$ 3,598 5 3,936 real estate loans and $5,262 million and $6,545 million, Finished goods 2,596 3,191 respecthely, for highly incraged tr ansactions, l'nbilled shipments 188 206 At December 31,1992, contractual maturities for time 6.382 7.333 sales and loans over the next five years and after are:

I ess remluation to LIFO (1,S08)

(2.012) 514,900 million in 1993; $5,350 million in 1994; S3,848 S 4'574 S 5'321 million in 1995; $3,811 million in 1996; $3,654 million in 1997; and S6,452 million in 1998 and later - aggregating LIFO evaluations decreased $204 million in 1992 com-pated with a $141 million decrease in 1991 and an $89 mil-

$38,015 million. Experience has shown that a substantial lion increase in 1990, included in these changes were portion f receivables will be paid prior to contractual decreases of $183 million, S111 million and $15 million

• • • ""IFCC"' ' " E'F' * "" ** * " " * " * * " * * ' " * " "

• "'"""'I" "E*'"""*"'"'**

(1992,1991 and 1990, respectireh) due to lower inventory C"II"C *i "*'

Inels. There were nominal price decreases in 1992 and nancing le ses consists f direct financm.g and lever-1991 and a pric e increase in 1990. At December 31,1992, GE is obligated to acquire, under take-or-pay or similar "E"'I

"'"* of aircr It, radroad rolhng stock, autos, other arrangements, about $275 million per year of raw materials tr nsportauon eqmpment, data processing equipment, at market prices through 1997.

medical equipment, and other manufacturing, power gen-eration, mining and commercial equipment and facilities.

As the sole owner of assets under direct financing leases and as the equity participant in leveraged leases, GECS is 14 time sales, loans andlinancingleases) taxed on totallease pavments rec eived and is entitled to tax GECS financing Receivables (investment in deductions based on the cost ofleased assets and tax de-ductions for interest paid to third-party participants. GECS i

Note also is entided generally to any investment tax credit on i

leased equipment and to any r esidual value ofleased

+

Dr< ember 31 (In millumn 1W2 IW1 Ume sales andloans investment in direct financing and leveraged leases l

Specialiied financing 518,725 S19,461 represents unpaid rentals and estimated unguaranteed i r Let ar ing jesidu 1 values ofleased equipment,less related defened Equipment management 71 mcome. I ecause GECS has no general obligation for prin-38,015 37,773 cipal and interest on notes and other instruments repre-I Deferred income (945)

(924) senting third-party participation related to leveraged Time sales and loans-net of leases, such notes and other instruments have not been deferred inc ome 37.070 36.849 mcluded in liabilities but have been offset against the relat-l Investmentin #aancingleases ed rentals receivable. GECS' share ofientals receivable on Direct financing leases 20,890 17,180 j

lervaged leases is subordinate to the share of.its other ineraged leases 3.035 3.231 Participants who also have a security inter est in the Icased l

23.925 20,411 i

60.995 57.260 equipment.

l Less allowance for losses (1,607)

(1,508)

GECS' investment in financing leases is shown on the

(

$59,388 555.752 following page.

I Time sales and loans rr. presents tramsactions in a uriety l

of forms, including time sales, revohing charge and credit, mortgages, installment loans, intennediate-tenn loans, and f

revohing loans secured by business assets and mandatorily redeemable preferred stock. The portfolio includes time i

l i

l 52

Invrstmentin #nincinglxsis Total financing leases Dir eci finanting leases Irveraged leases 1

Detrmber 31 (In millions) 1992 1991 MC 1991 1992 1991 Total minimum lease paymems rec civable 538,172 535,074

$ 25.390

$21,530 512.782

$13,544 Irss principal and interest on third-partt nonrecourse debt (9.446)

(9.828)

(9.446)

(9,828)

Rentals receivable 2o,726 25,246 25.390 21.530 3,336 3.716 Estimated unguaranteed residual value of leased assets 4.352 3,735 3,115 2.536 1,237 1,199 less deferred income (a)

(9.153)

(8.570)

(7,615)

(6.886)

(1.538)

(1.684)

{

fnvistmentin Knancing leases (as shown on the previous page) 23,925 20,411 20.890 17,180 3.035 3.231 j

Leu amounts to arrive at net investment Allowance for losses (560)

(407)

(481)

(349)

(79)

(58)

Deferred taxes arising from financing leases (4.553)

(4.061)

(1.986)

(1.667)

(2,567)

(2,394)

N;tinvestmentininancingleases

$18.812 515.943 518.423 515,164 5 389 5 779

)

(a) Total financing lease deferred im ome is net of defened initial direct costs of $73 million and $69 mWion for 1992 and 1991, respec6vely.

At December 31,1992, contractual maturities for rentals receivable over the next th e yean and after are: 56,208 j

million in 1993; $4,978 million in 1994: S4,223 million in Property, Plant and Equipment 1995; $2.893 million in 1996; $1,818 million in 1997; and Note (m.cludm.g equipmentleasedto others)

$8,60t> milh.on m 1998 and later-aggregating $28.726 million. As with time sales and loans, experience has shown that a portion of receivables will be paid prior to December 31 on mmiono 19<e 1991 contractual maturity and these amounts should not be re-On..gmalcost garded as forecasts of future cash flows.

GE Under arrangements with customers, GE Capital has 1.and and improvements S 375 5 329 committed to lend funds ($2,702 million and $2,755 mil, nulldings, structures and related lion at December 31.1992 and 1991, respectively) and has equipment 5.398 5,022 Machinery and equipment 14.936 14.449 issued sundry financial guarantees and letters of credit trasehold costs and manufat taring

($1,814 million and S1,913 million at December 31,1992 plant under construction 1,183 1,159 and 1991, respectively). Note 21 discusses financial guar-Other 86 86 anties ofinsurance affiliates.

21.978 21.045 At December 31,1992 and 1991, GE Capital was condi-GECS tionally obligated to advance S2,236 million and $2,083 j" 'n "[ $ P million, respectively, principally under performanc e-based Aircraft 2.850 2,273 i

standby lending commitments, GE Capital also was obli-Marine shipping containers 2.584 2,045 gated for $2,147 million and $3,0S2 million at year-end Vehides 2174 1,938 1992 and 1991, respective ly, under standby ligt$idity facili-Railroad rolling stock 1.4 O

ties related to third-party commercial paper programs, al-13.677 11.028 though management belieses that the prospects of being 535.655 532.073 required to fund under such standby facilides are remote.

Accumulated depreciation, depletion Noneaming consumer time sales and loans, primarily and amortization private-label credit card receivables, amounted to $444 GE S12.046 511,070 million and $556 million at December 31,1992 and 1991, GECS respectively. A majority of these receivables were subject to Emidings and equipment 673 531 Equipment leased to others 2,549 2.140 various loss-sharing arrangements that prmide full or par-g),c68 5M1 tial recourse to the originating private-label entitv. Non-earning and reduced earning receivables other than con-Included in GECS' equipment leased to others at year-sumer time sales and loans were $934 million and $990 end 1992 w-s $94 million of commercial aircraft of1-lease million at y ear-end 1992 and 1991, respectively. Earnings

($132 million in 1991).

of $30 million and $44 million realized in 1992 and 1991, Current-sear amortization of GECS' equipment leased to respectivelyatere $75 million and $83 million lower than odiers was $1,133 million, $1,055 million and $835 million would have been reported had these receivables earned in 1992,1991 and 1990, respectiveh.

income in accordance with their original terms.

.4dditionalinfonnation ngarding GECS'Jinancing wcnvables n induded in Alanagement's Disrunion of GECS Operations be-ginning on page37.

53

GE The aggiegate fair v;due of marketable equity secur-ities that are carried at ( ost was 583 million and $51 mil-Note intangible Assets lion at 3 ear-end 1992 and 1991, respectitriv. Gniss tuu cid-ired gains and hisses were 530 million and S1 million, r espe (in ch, at De( ember 31,1992.

Dec ember 31 on mm.ns) wx nmi In hne with industn pra tice, sales of c ommercialjet air-GE craf t engines often involve long-tenn customer financing Gmiduill

$5.873 55.8n7 commitments. In making such commitments,it is GE's Other intangibles 731 729 general practic e to require that it haw, or he able to estab-tL607 6.536 lish, a secured position in the aircraf t being finam ed.

EICE Under such airline financing programs, GE had iwued Goodwill 1.541 1,801 loans and guanunees (pn.ncipally guaranters) amounting Othen intangibles 1,062 686 to S974 million at year-end 1992 and $463 million at year-o,903 g,49o 59.510 59.026 end 1991: and it had entered into commitments totaling

$2.3 billion and $2.8 billion at year-end 1992 and 1991, re-GE's intangib!c assets are shown net of accumulated spectivel), to prmide financial assistant e on futme aircraf:

amortization of $1,476 million in 1992 and $1,245 million engine sales. Estimated fair values of the aircraft securing in 1991. GFCS' in. tangible assets are net of arctunulated these re(civables and guarantees exceeded the related amortization of 5646 nullion in 1992 and 5441 million account balances or guaranteed amounts at December 31, in 1991.

1992. GECS acts as a lender and lessor to the conunertial airline industrv. At December 31,1992 and 1991, the aggregate amount of suc h GECS loans, leases and equip-17AllotherAssets ment leased to others was $5,978 million and 55,759 mil-tion, iespectively.

Note At year-end 1992, the National Broadcasting Company had $1,384 million of commitmena to acquire lu oadcast Dec ember 31 an nnh.no wn wo material or the rights to broadcast television programs that regnile payments through the 3 ear 2000.

GE GECS. 5fiscellaneous investments included $275 million Imc~nnents in assoc iated (ompanics (imtuding advances of $196 and ss) 3 s 1,30) 51 s o and $1.127 million at December 31,1992 and 1991,iespec-Imestments in gmermnent and titely, of in4ubstam e repossessions at the lower of cost or govenunent-guaranteed secmities 274 2s3 ntimated fair value pr esiously included in financinN re-Misc c!!aneous investments 67 ceivables. GECS' mortgage-senicing activities include the Marketable equin securities 51 50 Picpaid pension asset 3.310 2.637 purchase and resale of mortgages. It had open commit-Other 2.230 1,879 ments to purchase mortgages totaling S2,963 million and 7.505 6,786

$1,005 million at December 31.1992 and 1991, respective-GECS ly; and it had open (onunitments to sell mortgages tot 2 ding Investments in associated (ompanie' S 1,777 million and $663 milhon, respec th cly, at year-end (in(Inding advam es of 5687 and 5538) 1,720 1.409 1992 and 1991. At December 31,1992 and 1991, mort-Misc ellaneous im est ments

,, o.16 o..e.63 Assets a(quired for tesale, at lower of gages sold with full or par tial ecourse to GECS aggregated c ost or ma:Let 3.3Ms 1.628

$3,876 million and $3.530 million,iespectively.

Defer red imurance a(quisition costs 720 fhG l' ore (losed real estate properties 304 278 Other b48 91s 9.196 7,432 Eliminations t76) 516.625 S14."18

'i4

Outstanding balances in long-term borrouings at December 31.1992 and 1991, are as follows.

Note Borrowings long-term borrowings Weighted l

December 31 average Short-term borrowings 1992 Awl tln nulhono interest rate Marunun IW2 1991 Det ember 31 Average Average (In millions)

Amount rate Anu>unt rate Gf Nwes (a) (b) 6.80% 1994-1998 $ 2,298 $ 2,650 GE Extendible notes (c) 300 Commercial paper

$ 1.175 3.539

$ 1.369 5.439c Debentures / sinking-Parable to banks fund debentures 8.63 2016 300 486 (principally non-U.S.)

456 8.73 1,464 11.93 Deep discount notes 7.66 1994 150 350 Notes to trust Industrial development /

depiutments 269 3.14 297 4.77 pollution control Other (a) 1.548 352 bonds 3.09 1945-2019 272 246 3.44N 3.482 Other (a) (d) 400 300 GECS 3,420 4.332 Commercial paper 42.16s 3.57 38,822 5.12 GECS i

Payable to banks 4.516 4.20 3.003 5.20 Senior notes l

Notes to trust Notes (a) (e) 8.28 1994-2009 18.087 14,170 departments 1,659 3.54 897 4.90 Master notes 39 Other (a) 4.840

- 5.348 Zer o coupon / deep 53.183 48,070 discount notes 13.82 1994-2001 1,578 1.952 Extendible. reset or Eliminations (242)

(202) remaiketed notes (c) 8.17 1994-2018 1,500 1.522

$ 56.389

$ 51.350 Floating rate notes (f) 199N2050 496 926 Less unamorthed (a) Imludn the current ponion of long-term debt.

discount / premium (464)

(645) 91'197 17 964 Confirmed credit lines of approximately $3.1 bilhon Subordinated noies (g) 8.13 1994-2012 760 386 had been extended to GE by 44 banks at year-end 1992.

21,957 18.350 Substantially all of GE's credit lines are available to GE fliminations (1)

(1)

Capital and GECS in addition to their own credit lines.

55.376 $22.681 At 3 car-end 1992, GE Capital had committed lines of credit aggregating $17.5 billion with 155 banks, including (a) At December 31.1932, GE and GECS had agrred to cu bange cur-

$2.9 billion of revohing credit agreements pursuant to

"'"C""n pnncipal amoums equivalent to us. $1.224 minion and 56,499 milhon. sespectively, and related interest pavments. GE and which GE Capital has the right to borrow funds for pel-GECS also had entered into interest rate swaps velating to interest on I

iods exceeding one year. A total of $4.3 billion of GE

$2.352 million and $8,549 million. rnpec tiveh. At December 31, 1991, GE md GECS had agreed to enhange c urrencies on principal L,ap. l.ita s credit h.nes is available for use by GECS; $1.7 bil-amounts equivalent to uS $1,083 million and $4.994 million. mpec-lion is available for use by GE.

tivelv. and related interest payments. GE and GECS also had enten d j

I"' i"' ' ' ** ***P' '*I#d '" i"'"'"' "" 81 521 *ilh"" *"d Durin8 1992, neither GE nor GECS borrowed under

$5,923 md." lion, respectively.

any of these credit lines. Both compensate banks for credit (b) At December 31.1991, $250 million of the current ponion of long-

""'e5 "C'r 'ed "ified as long-term debt based on Glcs ability facilities either in the form of fees or a combination of and intent to refinance suc h debt. This unount was ichnamed dur-balances and fees as agreed to uith each bank. Compen-ing 1992.

sating balances and commitment fees were immaterial in (c) Imcint rates are snet at the end of the initial and each subsequent interest period. At each rate-reset date. GE and GECS ruay rrdeem each of the last three years.

note,in whole or in part at their option; the extendible notes are re-Kidder, Peabody had established credit lines of $5.2 bil-payable at the option of the holder ai fac e value plus accrued interest.

lion at December 31,1992, including $2.6 billion available

• *""*"' I""*' P"'i"d h" GE ""'" ""d' i" ^Prd 1993; C""""'

mierest penodwange from March 1994 to May 1096 for GECS notes.

On an unsectued basis. Borrowings from banks were Norn are included in the current ponion of long-tenn debt when the primarily unsecured demand obligations, at interest rates rate-resei daic is within one year.

(d) Indudn original issue premium and discount and a variety of obli-approximating broker call loan rates, to finance.invento-ganons having various imerest rain and matmities. including bor.

- ries of securities and to facilitate the securities settlement rowings by paient operating com[x>nents and all afbliate borrowings.

(c) At December 31.1992 and IWl, c ounterpanies held options under process.

which GECs can he caused io execute interest rate swaps aw>ciated Aggregate amounts oflong-term borrowings that with interest pannents through 1999 on $625 million.

mature durinE the next ihe years, af er deductinE ebt

• D '"* "' i"""st pavaue on each note is a variaue raic based on d

the commercial paper rate each month. Interest is payable either reacquired for sinking-fund needs, are as follows.

mumbly or semiannuaHy at the option of GL CS.

(g) Includn $700 million at December 31,1992, guaranteed by GL (In millions) 1993 1994 1995 ID96 1997 GE

$1.359 $ 821 $ 274 $ 527 $ 600 GECS 4,300 4,243 4,557 3,331 2.750 55

A 19 YetPurchased,atMarket GECS Securities Sold but Not Note Note GE AllOtherliabilities Decend er 31 (In millmno tw2 Iwl This au ount includes noncurrent compensation and ben-efit accnials at year-end 1992 and 1991 of $3,743 million U.S. govermnent S 9.570 S 3,878 and $3,908 miliion, respectively. Other noncunent lia-Corporate stocks. bonds and non-U.S.

bih.. ties mclude amounts for product warranties, deferred

>ccurities 1,802 979 5 tate and municipal sec urities 41 27 incentive compensation, deferred income and a wide vari-S11,413 54.884 ety of sundry items.

GE AIIOther Current Costs Note Deferredincome Taxes Note w andExpenses Accrued At 3 ear-end 1992 and 1991, this account included taxes ac-

"" *" d"* 8 3 d " "*""

I*2 I*I crmd of $1,460 million and $1,350 million,iespectively, and compensation and benefit accruals of $705 million Assets and $795 million, respectively. Also included are amounts GE 5 2.864 5 3,130 GECS 1.810 1.233 for product warranties, estimated costs on shipments billed 4,674 4.363 to customers and a uide variety of sundn items.

~

^

liabilities GE 2,535 2.107 GECS 6.ti79 6.085 21heserves ofInsurance Af5/iates 9.214 8.192 Note Principal components of the net deferred tax liability Reser es ofinsurance affiliates represents unearned balances are shown below for GE and GECS.

premiums and prmisions for pelicy losses and benefits U" *"d** 8I U" '"#""')

I"2 I*

relating to their property and casualty, life, and financial and mortgage guamnty insurance. The estimated liability GE j

for insuranc e losses and loss expenses consists of both case Provisions for expenses S(1,491) 5(1,582)

Redree and health insurance (965)

(1,014) and incurred-but-not-reported reserves. Where experience AMT credit carnforwards (2)

(140) is no: suf ficient, mdustry averages are used. E..stunated GE pension 93,

,43 amounts of sahage and subrogation recoverable on paid Depreciation 829 841 and unpaid losses are deducted from outstanding losses.

Other - net 343 129 The liability for future policy benefits of the life insur.

(329)

(1.023)

GEC8 ance affiliates has been computed mainly bv a net-level-premium method based on assumptions fN invesunent

[ "[ti 4,5t[3

~

i" " s 4.061 yields, mortality and terminations that were appropriate Tax transfer leases 329 327 at date of purchase or at the time the policies were devel-Provision for losses (715)

(496)

Insurance reserves (344)

(308) oped, including provisions for adverse deviations.

credit canyf rwards

(' K )

Financial guaranties, principally by GE Capital's Finan-cial Guaranty Insurance Company, net of reinsurance, 4.869 4.852 were $67.fi billion and $52.51 ' '

at year-end 1992 and Netdeferredtaxliability S 4,540 5 3.829 1991, respectively. Mortgage -.

u e risk in force of GE Capital's mortgage insurance im t.ons aggregated $21.3 Deferred taxes for 1992 were determined under SFAS billion and $17.1 billion at December 31,1992 and 1991, No,109_ Accounting for Income Taxes," which was respectively.

adopted effectivejanuary 1,1992. Deferred taxes for 1991 were detennined under SFAS No. 96

• Accounting for Income Taxes."

56 A

/

shares with an aggregate cost of $4,801 million. GE an-MinorityInterestin Equity nounced nJuly 15,1992, that it will conclude this Note ofConsolidatedAffiliates program at $5 billion, a level expected to be reached by the end of the first halfof 1993.

ee cts o an tinuo o u3 the nnandal Minority interest in equity of consolidated GECS afliliates

• • • '"* #" l*

• " * " "**I""CII "^IC""*"CY includes 8,750 shares of $100 par value variable cumulative preferred stock issued by GE Capital with a liquidation is the local cunency are included in other capital. Asset pr eference value of $875 million. Dividend rates on this and liability accounts are translated at year-end exchange pteferred stock ranged from 2.44% to 3.49% during 1992 rates, wMe revenues and expenses are translated at aver-and from 3.395% to 5.65% during 1991.

age rates or the peri d. Lumulative currency translation adjusunents were $33 million, $242 million and $417 mil-lion of additions to other capital at December 31,1992, 1991 and 1990, respectively.

2w ShareOwners' Equity Note un rnations) 1992 1991 1990 Note OtherStock-Relatedlnformation Common stockissued Balance atJanuary I and Stock option plans, stock appreciation rights, resuicted December 31 5 584

$ 584

$ 584 stock and restricted stock units are described in the Com-Othercapital pany's current Proxy Statement Requirements for stock Balance atJanuary I

$ 938 5 1,061

$ 826 option shares may be met within certain restrictions from cither unissued or treastur shares.

a1 e 5 (209)

(175) 284 L'mealized gains (losses) on securities held bv Stock optioninformation Average per sham insurance affiliates 30 45 (33)

Shares subject option Mar Let Gains (lowes) on treasury (Shares in thousands) to option pnce price stoc k dispositions (4) 7 (16)

Balance at December 31 S 755

$ 938 5 1.061 Ikdance atJanuarv 1,1992 25,642

$55.87

$76.50 Retainedearnings Options granted 7,835 77.88 77.88 Balance atJanuarT 1

$23,787

$22.959

$20,352 Options exercised (4.850) 46.05 80.51 Net earnings 4,725 2.636 4,303 Options surTendered on exercise Dividends de clared

-(1,985)

(1.808)

(1,696) of appreciation rights (1,019) 43.67 82.83 ptions terminated (457) 65.23 Balance at December 31

$26.527

$23.787

$22,959 Balance at December 31,1992 27,151 64.28 85.50 Common stock heldm, Ba ce tJanuary 1

$ 3.626

$ 2,924 S 872 ares av ilable for granting options at the end of 1992 Purchases 1,206 1,1l a 9,46g were 8,755,078 (compared with 8,108,433 at the end of Dispositions (425)

(410)

(416) 1991). I'nder the 1990 lxmg-Term Incentive Plan (the only Balance at Deceraber 31

$ 4.407

$ 3.626 S 2.924 plan under which options may be granted),0.95% of the Company's issued common stock (including treasury Authorized shares of common stock (par value 50.63) shares) as of the first day of each calendar year during total 1,100,000,000 shares. Common shares issued and out-which the Plan is in effect become available for granting standing are summarized in the table below.

awards in such year. Ar:y unused pordon, in addition to Shzres of GEcommon stock shares allocated to awards that are canceled or forfeited, is December 31 (In thousands) 1992 1991 1940 available for later years.

Outstanding options and rights expire on various dates Issued 926,564 926,564 926,564 in urasury (71.135)

(62.442)

(53.444) through December 20,2002.

Outstanding 855.429 864,122 873.120 GE preferred stock up to 50,000,000 shares ($1.00 par value) is authorized, but no suc h shares have been issued.

In connection with the share repurchase program, au-thoriied by GE's Board of Directors in November 1989, the Company in 1992 reacquired and placed in treasury 14.643,100 shares of its common stock at a cost of $1,132 million. As of December 31,1992, total common stock reacquired under the program amounted to 71,390,750 57

"All other operating activities"in the Statement of Cash Flows consists principally of adjustments to curTent and Note Supplemental Cash flows Information noncunent at cruals of costs and expenses, amonization of premium and discount on debt, and adjustments to assets ann @

d and inun@n su a as m Changes in operating assets and liabilities are net of acqui-The Statement of Cash Flows excludes cenain noncash sitions and dispositions of businesses. *Pavments for princi-nans cti ns that had no significant effects on the investing j

pal businesses purchased ~ in the Statement of Cash Flows is net of cash acquired and includes debt assumed and imme-or fmancing activities of GE or GECS.

diately repaid in acquisitions.

Certain supplemental information for GECS' cash flows j

is shown below, For the years ended Dec ember 31 (in milhom) 1992 1991 1990 Selectedbroker-dealer accounts hlarketable secunties of broker-dealer 5 (5.966)

S (5,463)

$ (3.915)

Securities purchased under agreements to resell (7,386) 4.006 (7,388)

Securities sold under agreements to repurchase 7,841 349 11,269 Securities sold but not 3et purchased 6.529 (440) 1.234 S 1,018 5 (1,548)

S 1,200 Finzncing receivables Inucase in loans to customers S(27 #69)

S(25.030) 5(25,678)

Principal collections from customen, 25,136 25.289 22,028 Investment in equipment for financing leases (7,758)

(8.829)

(5,214)

Principal collections on financing leases 5,338 3,726 3,534 Net change in credit card receivables (330)

(2.410)

(247)

$ (4.683)

S (7.254)

$ (5.577)

Allotherinvesting activities l

Puu hases of marketable securities by insurance affiliates 5 (6.865)

$ (6S02)

S (4,980)

Dispositions and maturities of marLetable securities by insunmce affiliates 6.200 5,415 3,983 Other (3.003)

(1,538)

(733)

S (3.668)

S (2,125)

S (1,730)

Nswly issued debt having maturities more than M days 5hort-tenn (91-365 days)

S 4.456 5 4,863 S 4,162 Ix>ng-term (over one year) 6.699 6,317 6,365 lxing-term subordinated 450 250 Proc ceds - nonrecourse, leveraged lease debt 148 1,808 88 5 11,753 S 13.238 5 10.615 R:psyments and other reductions of debt having maturities more than % days Short-tenn (91-365 days)

S (6,474)

S (6.504) 7 (5,457) lamg-term (over one year)

(658)

(1,7fe)

(298) lamg-term subordinated (76)

(32)

Principal payments - nom ecourse, leveraged leae debt (272)

(280) y1; i

S (7,480) 5 (8.585)

$_(ii.026)

Kidder, Peabody, in conducting its normal opet ations, 28GECS' Broker-DealerPositions employs a wide variety of financial instruments in order to balance its investment positions. Management believes that Note the most meaningful measure of these positions for a bro-ker-dealer is market value, the value at which the positions necember 31 (tn mittions) 1992 1991 are presented in the Statement of Financial Position in ac-includedin GECS'other receirables cordance with securities industry practices. The following Securities failed to deliver S 218 5 293 required supplemental disclosures of gross contract tenns Deposits paid for securities bonowed 1,976 909 are indicators of the nature and extent of suc h broker-i Clearing organizations and other 930 1,193 dealer positions and are not intended to portray the much 83'I24 52395 smaller credit or ec onomic risk.

i L:cludedin GECS' accounts payable At December 31,1992, open commitments to sell mort-Secunties failed to receive S 193 S 402 gage-backed securities amounted to $17,191 md. lion Deposits recei ed for securities loaned 1,051 1,236 Clearing organizations and other 100 199

($18,897 million in 1991); open commitments to purchase

$ 1,344

$1.837 mortgage-backed securities amounted to $13.131 million

($13,545 million in 1991); interest rate swap agreements l

58

i were open for inter est on $6,038 million (S-1,709 million in Tirne sales, loans and rrlatedparticipations. Based on quoted a

1 1991)a ommitmentsamounting to 56,711 million (59.234 market prices recent transactions, market comparables million in 1991) were open under options written to cover and /or discounted future cash flows, using rates at whic h i

price changes in securities; the face amount of open inter-similar loans would hase been made to similar borrowers est rate f utures and forward contracts for currencies as well at December 31,1992.

I as money market and other instruments amounted to Imestments in associated mmpanics. GECS' imrstments are S10,936 million (S2.822 million in 1991); contracts estab-based on market comparables, recent transactions and/or i

lishing limits on counterparty exposure to interest rates discounted future cash flows as of December 31,1992.

were outstanding for imerest on $2.722 million (S2,406 These equity interests were generally acquired in connec-million in 1991); and firm undeneriting commitments for tion with financing transactions and, for purposes of this the purc base of stock or debt amounted to $4,094 million disclosure, fair values were estimated. GE's investments

]

($1,738 million in 1991 ).

(aggregating S1,301 million as of December 31,1992) i comprise many smallinvestments, many of which are k>-

cated outside the United States. and generallyinvolve joint ventures for specific, limited otjectives; determina-tion of fair values is impracticable.

EVote Fair Values oiFinancialInstruments Otherfinancialinstruments. Based on recent comparable transactions, market comparables, discounted future As required under generally accepted accounting princi-M flows, quoted market prices, and/or estimates of the ples, financial instruments are presented m the accompa-l December 31,1992, cost to terminate or otherwise settle i

2 nymg financial statements - generally at either cost or fa.

ir obligations to counterparties.

j value, based on both the characteristics of and manage-ment intentions regarding the instruments. 31anagement Bormwings. Based on December 31,1992, quoted market believes that the financial statemont presentation is the prices or market comparables. Fair values ofinterest rate i

most useful for displaying the Company's results. However, and currency swaps are included in the associated borrow-SFAS No.107

• Disclosure About Fair Value of Financial ings values and include the effects of counterparty credit-Instruments' requires disclosure of an estimate of the fair worthiness.

value of certain financial instruments. These disclosures Financialguarantics ofinsurann af4/intes. Based on future disregard management intentions regarding the instru-cash flows, considering expected renewal premiums, i

ments, and therefore, management believes that this infor" claims, reftmds and senicing costs, discounted at a mar-f mation may be oflimited usef tilness.

Let rate.

t Apart from the Company's own borrowings and finan-The carning amounts and estimated fair values of the i

cialinstruments of Kidder, Peabody, relatively few of the Company's financial instruments at December 31,1992, I

Company's financial instntments are actively traded. Tims, are as follows.

i fair ulues must often be determined by using one or more Assets (liabilities) carning Enimated models that indicate value based on estimates of quantifi-(In millions) amount fair nlue able t haractenstics as of a panicular date. Because this undertaking is, by nattue, difficuh and highlyjudgmental, GE for a limited number ofinstruments, altemative valuation Cash and equivalents

$ 1,189

$ 1.189 techniques indicate values sufficiently diverse that the only h^3 *[ ((#""

3; t 8

8 practicable disclosure is a mnge of values. L'sers of the fol-Borrowings (6.868)

(6.991) lowing data are cautioned that limitations in the estima-GECS tion techniques may have produced discimed values differ-Cash and equivalents 1,940 1,940 ent from those that could have been realized at December f;' #

3)##" #',--

l n

224 H,W i

31,1992. Aforeover, the disclosed values are representative participations 36,131 37,420-36.240 of fair values only as of December 31,1992, inasmuch as Investments in associated i

interest rates, performance of the economy, tax policies companies 1,720 2.295-2,180

"^'

"""**"I*

and other variables significantly impact fair valuations.

j For GECS, maiketable securities carried at market value, Financial guaranties ofinsur-i reverse repur chase agreements, repurchase agreements ance afhliates (1,036) 200-55 and other receivables have been excluded as their carning f a) Proceeds imm ix.trowings are invested in a varicrv of GEcs a< thities, amounts and fair values ar e approximately the same.

including both financialinstruments, shown in th'e preceding table,

)

Values were estimated as follows.

amH as leases, fw whic.h fanalue disclosures ate neither required nor reasonabh estimabic. When evaluatmg the extent to whkh esti-Mar *ctable securities-other. Based on quoted Decemher mated fair value of borrtmings exc eeds the related earning amount.

""h"'d '"""d""h*' ** I"I' ""' "I 'h' fi**dP '*""r#

• 31,1992, marLet Prices or dealer 9uotes for actively traded for long-tenn leases would inacase as weli.

securities. Value of other such securities was estimated us-ing quoted market prit es for similar securities.

59 l

=

Note IndustrySegments Revenues (In millions)

For the years ended December 31 Total nevenues Intersegment revcnues External rn enues 1992 1991 1990 1992 1991 1990 1992 1991 1990 GE Aircraf t Engines S 7,368 $ 7,777 $ 7,504

$ 57

$ 29 S 7.311 $ 7,748 5 7,504 Appliances 5.330 5,225 5,592 3

4 3

5,327 5,221 5,589 Broadcasting 3,363 3,121 3,236

.1 3,363 - 3,120 3,236 Industrial 6,907 6,783 6,644 267 327 323 6,640 6,456 6.321 Materials 4,853 4,736 5,140 51 51 53 4,802 4,685 5.087 Power Systems 6,371 6,189 5,600 272 265 185 6,099 5,924 5,415 Tecimical Products and Senices 4.674 4,686 4,259 68 99 114-4,606 4,587 4,145 All Other 1,749 1,545 1,369 1,749 1,545 1,369 Corporate items and eliminations (361)

(468)

(285)

(718)

(776)

(678) 357 308

-393 Total GE 40.254 39.594 39.059 40,254 39.594 39.059 GECS Financing 10,544 10,069 9,000 10,544 10,069 9,000 Specialty Insurance 3,863 2.989 2,853 3,863 2,989 2,853 Securities Broker-Dealer 4,022 3,346 2,923 4,022 3,346 2.923

- A110ther 11 (5)

(2)

II (5)

-(2)

Total GECS 18.440 16.399 14.774 18,440 16.399 14,774 Eliminations (1.621)

(1,364)

(1.214)

(1.621) (1,364) (1,214) '

Consolidated revenues

$57,073 554.629 552.619 5-S -

$57,073 $54.629 $52,619 Assets Property,plantand equipment (including equipmentleased to others) tin millions)

At Dec ember Si for the rears ended December 31 Depreciation, depletion and Additions

~ amortiration 1992 1991 1990 1992 1991 1990 1992 1991 1990 GE Aircraft Engines

$ 6,153 5 6,649 $. 5,853 S 276 $ 371 5 365 5 294 $ 295 $ 291 Appliances 2,248 2,503 2,666 126 118 106 105 106 100 Broadcasting 3,736 3,886 4,461 52 70 74 82 84 84 Industrial 4,983 4,824 4,559 299 320 426 282 262 259 hlaterials 8,081 8,340 7,973 255 784-693 393-369 325 Power Svstems 3,614 3,450 3,073 245 267 230 159 144 139 Tec hnical Products and Senices 2,393 2,629 2,685 118 148 137.

74 98 101 All Other 9,719 -

8,750 7,721 1

6 6

5 5

6 Corpotate items and eliminations 7,148 6,119 5.4f4 73 80 65 89 66 54 Total GE 48.075 47,150 44.451 1,445 2.164 2,102 1.483 1.429 1,359 GECS Financing 82,207-74,554 65,461 4,761 3,688 2,893 1,259 1,161-916 Specialty Insurance 14,624 11,812 10,614 -

17 11 31 13 8'

11 Securities Broker-Dealer 55,455 41,218 38,845 32 31 38 34 38 31 All Other 2.238 230 175 118 41 28 29 18-16

' Total GECS 154.524 127,814 115.095 4,928 3,771 2,990 1,335 1,225 974 Eliminations (9.723)

(8.456)

(7.546)

Gonsolidated totals

$192.876 $166,508 $152.000

$6.373 ' $5.935 $5,092 52.818 S2.654 52,333 During 1992, rnrpues of certain international activities werr reclawified to neflect more dosely their appropriate industry segment. Data for 1991 and 1990 have been reclassified to conform with the 1992 presentation. *All other* GE revenues consists primarily of GECS* earnings. *All other" GE assets consists primarih of investment in GrCS.

60

r, A description of industry segments for General Electric utility industn ; nuclear reactors; and fuel and support Conypany and consolidated afliliates follows.

senices for GE's installed boiling water r eacton.

e Airrraft Engines. }et engines and replac ement parts and 7echnimi Nducts and Screices. Medical systems suc h

=

repair senices for all categwies of commercial aircraf t as magnetic resonam e (MR) and (omputed tomography (shoit / medium intermediate and long range); a wide vari-(CT) scanner s. X-rav. nuclear imaging, ultrasound and ett of militart planes, including fighters, bombers, tankers other diagnostic equipment sold worldwide to hospitals and helicopters; and executive and (ommuter aircraft.

and medical facilities. This segment also includes a full Sold worldwide to air frame manufactmen, airlines and range of computer-based information and data inter-l gm ernment agencies. Also, aircraf t engine derivath es used change senic es for internal use and external commercial as marine propulsion and industrial power sources.

and industrial cmtomers.

e Appliances. Major appliances such as refrigerators,

= GECS Financing. Operations of GE Capital as follows-fr criers, elecuic and gas ranges, dishwashers,(lothes wash-Consumer sereircs-private-label and bank credit card ers and dners, microwase ovens and room air condi-loans, time sales and rnohing credit and imenton financ-tioning equipment. Sold primarily in North America, but ing for ietail merchants, auto leasing and im entorv financ-l also in global markets, under various GE and private-label ing and mortgage senicing.

brands. Distributed to ietail outlets, mainly for the repl. ice-Spnializedjinancing-loans and financing leases for ma-j ment market, and to building contractors and distributors jor capital assets, including aircraft, industrial facilides and for new installations.

equipment and energv-related facilities; commercial and

• Emadcasting. Primarily the National Broadcasting residential real estate loans and im estments; and loans to l

Company (NBC). Principal businesses are furnishing of and investments in highly leseraged management buyouts U.S. network television senices to more than 200 affiliated and corporate recapitalizations.

I stations, produ(tion of television programs, operation of Equipment management-leases, loans and asset manage-six VliF television broadcasting stations, and investment ment senices for portfolios of commercial and transporta-and programming acthities in cable television.

tion equipment, including aircraf t, trailers, auto fleets,

• Industrial. Lighdng products (including a wide variety modular space units, railroad rolling stock, data processing of lamps, wiring desices and quaru products); ele ( trical equipment, ocean-going containers and satellites.

distribution and control equipment; transportation sys_

3fid-madctfinancing-loans and financing and oper-tems products (including diesel-electric locomothes, tran-ating leases for middle-market cmtomers, including manu-sit propulsion equipment and motorized wheels for off.

facturers, distributon, and end users, for a variety of equip-highway schicles); electric motors and related products; a ment, including data processing equipment medical and broad range of electrical and electronic industdal automa-diagnostic equipment. and equipment used in construc-tion products; and GE Supply, a U.S. network of electrical don, manufacturing, ofhce applications and tele (ommuni-supply houses. Markets ar e extremelv varied. Products are cations activities.

sold to commercial and industdal end users, original Very few of the products financed by GE Capital ar<

equipment manufactur ers, electrical distributors, retail manufactured by other GE segments.

outlets, railways and transit authorities. Increasingly, prod-

= GECS Specialty Insurance. U.S. and internatbnal mul-ucts are developed for and sold in global markets.

tiple-line property and casualty reinsurance as d certain

• Afaterials. High-performance engineered plastics used directly written specialty insurance; financial ;uaranty in-in applications such as automobiles and housmgs for com.

surance, principally on municipal bonds and anictured fi-puters and other business equipment: ABS resins; sili.

nance issues; private mortgage insurance; cr editor insur-cones; superabrasives suc h as man-made diamonds; and ance covering international customer loan ret avments; laminates. Sold woddwide to a diverse c ustomer base con.

and life reinsurance.

sisting mainly of manufacturers.

• GECS Seemitics Emkcr-Deala. Kidder, Peabody, a

• Pouer Systems. Products mainly for the generadon, full-senice international im estment bank and securities l

transmission and distribution of electricity, including relat.

broker, member of the principal stock and commodities ed installation, engineering and iepair senices. Mar Lets exchanges and a primarv dealer in U.S. gosernment i

and competition are globak Steam turbine-generators are securides. Offers semces such as underwriting, sales and sold to electric utilities, to the US. Naq, and, for cogenera.

trading, achisory senices on acquisitions and financings, tion, to industrial and other power customers. Marine research and asset management.

steam turbines and propulsion gears are sold to the U.S.

Navv. Gas turbines are sold principally as packaged power plants for electric utilities and for industrial cogeneration and mechanical dris e applications. Power Systems also in-cludes power delivery and control products, such as trans-formers, meters relays, capacitors and arresters for the 61 1

e-6 31 Geographic Segment Information (consolidated)

Note Revenues (In millkms)

For the years ended De<cmber 31 Total revenues Intersegment revenues laternal revenues 1992 IW1 1990 1992 1991 1990 1992 1991 IWO United States

$ 48.710 $ 47,277 $ 45.565 5 1,281 5 1,246 $ 1,128 547,429 $46.031 544,437 Other arcas of the world 10.776 9,662 9,075 1,132 1,064 893 9,644 8.598 8,182 Interrompany eliminations (2,413)

(2,310)

(2.021)

(2,413) (2,310) (2.021)

Total 557.073 554.629 $ 52,619

- S

- S

$57,073 554.629 552.619 Operatingprofit Assets (In millions)

For the years ended De(ember 31 At December 31 1992 1991 1990 IW2 1991 1990 United States S 6,883 5 6,294 $ 6.040

$ 168,797 $147,648 5135,700 Other areas of the world 819 898 904 24,244 19,031 16,449 Intercompany climinations 6

(22)

(38)

(165)

(171)

(149)

Total S 7,708 5 7.170 5 6.906 S192.876 $166.508 $152.000 U.S. resenues include GE exports to extemal customers, specified prices and dates. Commitments outstanding at and royalty and licensing income from non-U.S. sources.

December 31,1992 and 1991, were $1,533 million and Exporrs to external customers by major areas of the world

$2.339 million, respectively, for GE and $2,084 million are shown on page 36.

and $615 million, respectively, for GECS, excluding The Company manages its exposure to currency move-Kidder, Peabody.

ments by committing to future exchanges of currencies at Note w Quarterlyintoimation(unaudited) 9"#""

N"*""

9"*""

(Dollas amountsin millions:

per+ hare amounts in dollars) 1992 1991 1992 IW1 IW2 1991 1492 IW1 Consolidatedoperations Earnings from continuing operations

$ 964 $ 893

$ 1,130

$ 1,032 5 996

$ 941 5 1,215 5 1,118 Eamings from discontinued operations 94 106 86 99 114 101 126 145 Accounting (hange (1.799)

Net earnings (loss)

$ 1.058 S (800) 51,216 51,131 S1,110 51.042 S 1,341 5 1,263 Per share Eamings from continuing operations 5 1.12 S 1.03 5 1.32 S. 1.19

. $ 1.17

$ 1.08 -

5 1.42 $ 1.29 Eamings from discontinued operations 0.11 0.12 0.10 0.11 0.13 0.12 0.15 0.17 Accounting c hange (2.07)

Net earnings Goss)

S 1.23 5 (0.92)

$ 1.42 5 1.30 5 1.30 S 1.20 S 1.57 5 1.46 S11;cteddata GE Sales or goods and services

$7.996 $ 8,129

$ 9,513 59,411 59.242

$ 8,973

$11,192 511,008 Gross profit from sales 2.083 2.215 2,496 2.692 2,123 2,302 2,824 2,416 GECS Revenues from operations 4,301 4,000 4.493 3,937 4.761 4.097 4.885 4,365 Operating profit 517 413 484 337 542 476 492 431 For GE, gross profit from sales is sales of goods and

' quired to be computed independently and, because of the senices les* cost of goods and senices sold. For GECS, large purchases of twasury shares in connection with the operating profit is income before taxes.

GE Share Repurchase Program, will not be equal to the Earnings-per-share amounts for each quarter ar e 1e-total year earnings-per-share amounts.

62

rF ii Corporate Headquarters Form 10-Kand OtherReports

( General Elecuic Company The financialinformation in this repmt,in the opinion of l 3135 Easton Turnpike management, substantially confonns with the infonnation l Fairfield, Conn. 06431 seguired in the *10-K Report' to be submitted to the Securi-(203)373-2211 ties and Exchange Commission by the end of March. Cer-

• • i"""PP "*ent 1 information is in that report, however, 1

Annu;lMeeting and copies without exhibits will be availabic, without The 1993 Annual Meeting of the General Electnc charge, from Corpomte Imestor Communications, G,eneral Company wd. l be held on Wednesday, April 28, at Elecuic Company, Fa. field, Conn. 06431, ir the Grand Wayne Center m Fort Wayne, Ind.

Q> pies of the General Electric Pension Plan, the Summary l Share Ownerinquiries Ammal Report for GE employee benefit plans subject to

' When inquiring about share owner matters, contact the Employee Retirement Income Security Act of1974, and -

, GE Securities Ownership Senices, P.O. Box 120065, other GE employee benefit plan doctunents and information Stamford. Conn. 06912. Telephone: (203)326-4040.

are available by writing to Cmporate Investor Communica-d""' ""d "P"'If i"R 'h' I"I"'**'I " d"' '#d' f

DividendReinvestmentPlan GE Capital Senices has a sepamte Annual Report, and Share owners whohave one or more shares ofGE stock regis-both it and GE Capital Corporation file Fonn 10-K Reports '

tered m.their names are eligible toinvest cash up to $10,000 widi dm Secun..nes and Exchange Cmmm.. mon. Cop.ies of per month and/or reimest theirdividendsin the GE Dividend these reports may be obtamed from General Electnc Cap l ita Reinvestment and Share Purchase Plan. For an authorizauon Senices. Inc., P.O. Box 8300, Stamford, Conn. 0692 e.

form and prospectus, write to GE Sectuities Ownership The Annual Reports of the General Elecuic Founda-Senices, P.O. Box 120068, Stamford, Conn. 0691o tions also in ay be obtamed by contacting thor office at Principal Transfer Agent and Registrar 3135 Easton Turnpike Fairfield, Conn. 06431.

To transfer securides, contact The Bank of New York, Corporate Ombudsman Rece.ive & Deh.rer Department, Church Street Station. P.O. Box 11002, New York, N.Y.10286.

To report ccmcerns about U.S. federal govemment j

contracting manenmr concerns relaung to other laws Telephone: (800)524-4458.

or GE policies, contact the GE Corporate Ombudsman, Stock &changeinformation P.O. Box 911. Fairfield, Ccmn. 06430.

In the United States, GE common stock is listed on the Telephone: (800)227-5003.

New York Stock Exchange (its principal market) and on the ProductInformation Boston Stock Exchange. GE common stock also is h.sted on certain foreign exchanges, including The Stock Exchange, For information about GE consumer products and senices, call The GE Answer Center

• senice at (800)626 2000. For Ismdon and the Tokyo Stock Exchange, information about GE technical, commerrial and industrial Tr: ding andDividendinformation produes and senices, call the GE Business Information common StorL Market Price Dividends Center at (800)626 2004. For information about the varied an dottm) -

ingh Low declaica financial products and senices offered by GE Capital Corporation, call (800)243 2222.

y Fourth quarter

$87%

$73%

$.63 Cassette Recordings Third quarter 79%.

73

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.An audio cassette version of this Annual Report is Second quarter 79 %

72 %

.55 available to the visually impaired. For a copy, c<mtact First quaner 80 %

73 %

.55 GE Corpomte Communications,3135 Easton Turnpike.

Fairfield, Conn. 06431. Telephone: (203)373-2020.

- g Fourth quarter 78 %

62

.55 Third quarter 75 %

67 %

.51 e Iws General Elearic company Prinied in U.5A.

Second quarter 77 %

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71 53

.51 n,,,.t'nw odierwiu indimed w the comen, d c terms cE.*

' General Electrir* and Tempam* are ua.ed on the i asis of conmli-As of December 7,1992, there were about 475,000 share daion described on page 45. sen'taat # :te etnic, $, GE and RG

owners of record, are registered trademarks of General Ucctric Companv; O and NBC are regniered trademarLS of Natiumd Bmadcasting Company.inc..:

e and

• indicate registered and unregistered trade and servic e marks.

63

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