(13)
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
------ ------
Commission file number 1-35
----
GENERAL ELECTRIC COMPANY
----------------------------------------------------
(Exact name of registrant as specified in its charter)
New York 14-0689340
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3135 Easton Turnpike, Fairfield, CT 06431-0001
----------------------------------- ------------
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code) (203) 373-2211
--------------
---------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for
the past 90 days.
Yes x No
--- ---
There were 1,659,755,210 shares with a par value of $0.32 per share
outstanding at March 31, 1996.
<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
Condensed Statement of Earnings
General Electric Company and consolidated affiliates
<TABLE>
<CAPTION>
(Dollars, except per-share amounts, in millions) Three months ended March 31 (Unaudited)
---------------------------------------------------------------------
Consolidated GE GECS
---------------------- ---------------------- ---------------------
1996 1995 1996 1995 1996 1995
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Sales of goods $7,241 $7,096 $7,244 $7,098 $ - $ -
Sales of services 2,473 2,159 2,498 2,180 - -
Earnings of GECS - - 650 559 - -
GECS revenues from operations 7,217 5,693 - - 7,245 5,754
Other income 167 178 166 180 - -
---------- ---------- ---------- ---------- ---------- ----------
Total revenues 17,098 15,126 10,558 10,017 7,245 5,754
---------- ---------- ---------- ---------- ---------- ----------
Cost of goods sold 5,210 5,157 5,213 5,158 - -
Cost of services sold 1,723 1,532 1,748 1,553 - -
Interest and other financial charges 1,875 1,662 143 126 1,735 1,543
Insurance losses and policyholder and annuity benefits 1,602 1,091 - - 1,602 1,091
Provision for losses on financing receivables 213 79 - - 213 79
Other costs and expenses 4,097 3,484 1,443 1,353 2,678 2,188
Minority interest in net earnings of consolidated
affiliates 60 39 16 12 44 27
---------- ---------- ---------- ---------- ---------- ----------
Total costs and expenses 14,780 13,044 8,563 8,202 6,272 4,928
---------- ---------- ---------- ---------- ---------- ----------
Earnings before income taxes 2,318 2,082 1,995 1,815 973 826
Provision for income taxes (801) (710) (478) (443) (323) (267)
---------- ---------- ---------- ---------- ---------- ----------
Net earnings $1,517 $1,372 $1,517 $1,372 $650 $559
========== ========== ========== ========== ========== ==========
Net earnings per share $0.91 $0.81
Dividends declared per share $0.46 $0.41
<FN>
See notes to Condensed Consolidated Financial Statements. Consolidating data are shown for "GE" and "GECS". Transactions
between GE and GECS have been eliminated from the "consolidated" columns.
</TABLE>
<PAGE>
Condensed Statement of Financial Position
General Electric Company and consolidated affiliates
<TABLE>
<CAPTION>
(Dollars in millions) Consolidated GE GECS
---------------------- ---------------------- ---------------------
3/31/96 12/31/95 3/31/96 12/31/95 3/31/96 12/31/95
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Cash and equivalents $3,170 $2,823 $1,021 $874 $2,149 $1,949
Investment securities 40,753 41,067 3 4 40,750 41,063
Current receivables 8,260 8,735 8,352 8,891 - -
Inventories 4,894 4,395 4,894 4,395 - -
GECS financing receivables - net 92,208 93,272 - - 92,208 93,272
Other GECS receivables 12,387 12,417 - - 12,830 12,897
Property, plant and equipment (including equipment
leased to others) - net 26,248 25,679 10,231 10,234 16,017 15,445
Investment in GECS - - 12,732 12,774 - -
Intangible assets 12,241 11,654 6,994 6,643 5,247 5,011
Other assets 30,052 27,993 12,503 11,901 17,549 16,092
---------- ---------- ---------- ---------- ---------- ----------
Total assets $230,213 $228,035 $56,730 $55,716 $186,750 $185,729
========== ========== ========== ========== ========== ==========
Short-term borrowings $65,696 $64,463 $2,827 $1,666 $62,879 $62,808
Accounts payable 8,538 9,061 3,625 3,968 5,676 5,952
Other GE current liabilities 8,700 8,477 8,546 8,326 - -
Long-term borrowings 52,306 51,027 2,286 2,277 50,059 48,790
Insurance reserves and annuity benefits 40,285 39,699 - - 40,285 39,699
Other liabilities 15,142 15,363 9,185 8,928 5,834 6,312
Deferred income taxes 7,304 7,380 539 508 6,765 6,872
---------- ---------- ---------- ---------- ---------- ----------
Total liabilities 197,971 195,470 27,008 25,673 171,498 170,433
---------- ---------- ---------- ---------- ---------- ----------
Minority interest in equity of consolidated
affiliates 2,971 2,956 451 434 2,520 2,522
---------- ---------- ---------- ---------- ---------- ----------
Common stock (1,857,013,000 shares issued) 594 594 594 594 1 1
Unrealized gains on investment securities 533 1,000 533 1,000 528 989
Other capital 1,843 1,663 1,843 1,663 2,260 2,266
Retained earnings 35,280 34,528 35,280 34,528 9,943 9,518
Less common stock held in treasury (8,979) (8,176) (8,979) (8,176) - -
---------- ---------- ---------- ---------- ---------- ----------
Total share owners' equity 29,271 29,609 29,271 29,609 12,732 12,774
---------- ---------- ---------- ---------- ---------- ----------
Total liabilities and equity $230,213 $228,035 $56,730 $55,716 $186,750 $185,729
========== ========== ========== ========== ========== ==========
<FN>
See notes to Condensed Consolidated Financial Statements. Consolidating data are shown for "GE" and "GECS". March data are
unaudited. Transactions between GE and GECS have been eliminated from the "consolidated" columns.
</TABLE>
<PAGE>
Condensed Statement of Cash Flows
General Electric Company and consolidated affiliates
<TABLE>
<CAPTION>
(Dollars in millions) Three months ended March 31 (Unaudited)
---------------------------------------------------------------------
Consolidated GE GECS
---------------------- ---------------------- ---------------------
1996 1995 1996 1995 1996 1995
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Cash flows from operating activities
- ------------------------------------
Net earnings $1,517 $1,372 $1,517 $1,372 $650 $559
Adjustments to reconcile net earnings to cash
provided from (used for) continuing operating activities
Depreciation, depletion and amortization 892 862 399 410 493 452
Earnings retained by GECS - - (424) (366) - -
Deferred income taxes 258 (27) 19 66 239 (93)
Decrease in GE current receivables 490 899 554 882 - -
Increase in GE inventories (567) (743) (567) (743) - -
Decrease in accounts payable (527) (835) (344) (176) (338) (617)
Increase in insurance reserves 1,565 615 - - 1,565 615
Provision for losses on financing
receivables 213 79 - - 213 79
All other operating activities (1,493) (517) 3 (949) (1,350) 402
---------- ---------- ---------- ---------- ---------- ----------
Cash from operating activities 2,348 1,705 1,157 496 1,472 1,397
---------- ---------- ---------- ---------- ---------- ----------
Cash flows from investing activities
- ------------------------------------
Property, plant and equipment (including
equipment leased to others) - additions (1,709) (1,617) (342) (307) (1,367) (1,310)
Net (increase) decrease in GECS financing receivables 651 (2,189) - - 651 (2,189)
Payments for principal businesses purchased (506) (1,627) (409) - (97) (1,627)
All other investing activities (1,267) (52) 49 38 (1,370) (88)
---------- ---------- ---------- ---------- ---------- ----------
Cash used for investing activities (2,831) (5,485) (702) (269) (2,183) (5,214)
---------- ---------- ---------- ---------- ---------- ----------
Cash flows from financing activities
- ------------------------------------
Net change in borrowings (maturities 90 days or less) (203) (3,262) 1,209 867 (1,414) (4,126)
Newly issued debt (maturities more than 90 days) 8,787 12,796 12 268 8,775 12,528
Repayments and other reductions (maturities
more than 90 days) (6,034) (3,970) (138) (159) (5,896) (3,811)
Net purchase of GE shares for treasury (624) (716) (624) (716) - -
Dividends paid to share owners (767) (699) (767) (699) (225) (193)
All other financing activities (329) (203) - - (329) (203)
---------- ---------- ---------- ---------- ---------- ----------
Cash from (used for) financing activities 830 3,946 (308) (439) 911 4,195
---------- ---------- ---------- ---------- ---------- ----------
Increase (decrease) in cash and equivalents 347 166 147 (212) 200 378
Cash and cash equivalents at beginning of year 2,823 2,591 874 1,373 1,949 1,218
---------- ---------- ---------- ---------- ---------- ----------
Cash and equivalents at March 31 $3,170 $2,757 $1,021 $1,161 $2,149 $1,596
========== ========== ========== ========== ========== ==========
<FN>
See notes to Condensed Consolidated Financial Statements. Consolidating data are shown for "GE" and "GECS". Transactions
between GE and GECS have been eliminated from the "consolidated" columns.
</TABLE>
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. The accompanying condensed quarterly financial statements
represent the consolidation of General Electric Company and all companies
which it directly or indirectly controls, either through majority ownership
or otherwise. Reference is made to note 1 to the consolidated financial
statements included in the Company's Annual Report on Form 10-K for the
year ended December 31, 1995. That note discusses consolidation and
financial statement presentation. As used in this Report and in the Report
on Form 10-K, "GE" represents the adding together of all affiliated
companies except General Electric Capital Services, Inc. ("GECS"), which is
presented on a one-line basis; GECS consists of General Electric Capital
Services, Inc. and all of its affiliates; and "consolidated" represents the
adding together of GE and GECS with the effects of transactions between the
two eliminated. Certain prior-year amounts have been reclassified to
conform to the current year presentation.
2. Two newly issued accounting standards were adopted in the first
quarter of 1996 and did not have a material effect on the financial
position or results of operations of the Company. Statement of Financial
Accounting Standards (SFAS) No. 121, Accounting for the Impairment of Long-
Lived Assets and for Long-Lived Assets to be Disposed Of, requires that
certain long-lived assets be reviewed for impairment when events or
circumstances indicate that the carrying amounts of the assets may not be
recoverable. If such review indicates that the carrying amount of an asset
exceeds the sum of its expected future cash flows, the asset's carrying
value is written down to fair value. Long-lived assets to be disposed of
are reported at the lower of carrying amount or fair value less cost to
sell. SFAS No. 122, Accounting for Mortgage Servicing Rights, requires
that capitalized rights to service mortgage loans be assessed for
impairment by individual risk stratum by comparing each stratum's carrying
amount with its fair value. Strata are based on the predominant risk
characteristics of the underlying loans, which include loan type and note
rate. Fair values are estimated based on discounted anticipated future net
cash flows considering market consensus for loan prepayment predictions and
other economic factors. To the extent that the carrying value of mortgage
servicing rights exceeds fair value by individual stratum, the resulting
impairment is recognized in earnings through a valuation allowance.
3. The condensed consolidated quarterly financial statements are
unaudited. These statements include all adjustments (consisting of normal
recurring accruals) considered necessary by management to present a fair
statement of the results of operations, financial position and cash flows.
The results reported in these condensed consolidated financial statements
should not be regarded as necessarily indicative of results that may be
expected for the entire year.
4. GE's inventories consisted of the following:
<TABLE>
<CAPTION>
(Dollars in millions) At
-------------------------
3/31/96 12/31/95
------- --------
<S> <C> <C>
Raw materials and work in process $ 3,533 $ 3,205
Finished goods 2,456 2,277
Unbilled shipments 233 258
Revaluation to LIFO (1,328) (1,345)
------- -------
Total inventories $ 4,894 $ 4,395
======= =======
</TABLE>
5. Property, plant and equipment (including equipment leased to
others) consisted of the following:
<TABLE>
<CAPTION>
(Dollars in millions) At
-------------------------
3/31/96 12/31/95
------- --------
<S> <C> <C>
Original cost
- GE $25,088 $24,867
- GECS 21,975 21,079
------- -------
Total 47,063 45,946
------- -------
Accumulated depreciation, depletion
and amortization
- GE 14,857 14,633
- GECS 5,958 5,634
------- -------
Total 20,815 20,267
------- -------
Property, plant and equipment - net
- GE 10,231 10,234
- GECS 16,017 15,445
------- -------
Total $26,248 $25,679
======= =======
</TABLE>
6. GE's authorized common stock consisted of 2,200,000,000 shares
having a par value of $0.32 each. Average shares outstanding for the first
quarter of 1996 and 1995 were 1,663,133,570 and 1,699,922,324,
respectively.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
A. Results of Operations -- First quarter 1996 compared with first
quarter of 1995
General Electric Company's earnings for the first quarter of 1996
were $1,517 million, up 11% from 1995's first quarter. Earnings per share
increased 12% to $0.91, up from last year's $0.81. Earnings per share grew
faster than earnings, reflecting the impact of shares repurchased under a
three-year $9 billion share repurchase program initiated in December 1994.
Revenues for the first quarter of 1996, including approximately $1.1
billion of revenues from entities acquired since the comparable 1995
quarter, totaled $17,098 million, up 13% from $15,126 million in the first
quarter of last year. The increase reflected GE's continued globalization
and the growth of after-sale services provided by each business. Revenues
increased at 10 of GE's 12 businesses, led by GE Capital Services, NBC, and
Power Systems.
GE's first-quarter operating margin rose to 13.7% of sales, up from
last year's comparable 13.1%. Operating profit increased at seven
businesses, led by NBC and Plastics.
Earnings of GE Capital Services increased 16% to $650 million,
benefiting from the continued globalization and diversity of its 26
businesses. The record results were led by strong double-digit increases
in its Equipment Management, Specialty Insurance and Consumer Services
activities.
Cash generated from GE's operating activities was a record $1.2
billion in the first quarter, up strongly from last year's $500 million.
As part of the share repurchase program, GE purchased $897 million of its
stock during the quarter to reach $4.1 billion of shares purchased during
the last 16 months.
SEGMENT ANALYSIS:
The comments that follow compare revenues and operating profit by
industry segment for the first quarters of 1996 and 1995.
* Aircraft Engines revenues were slightly higher than in the first
quarter of 1995, as higher services volume, including spare parts sales,
more than offset the decline in commercial engine sales. Operating profit
was somewhat higher than last year, reflecting productivity and improved
volume which more than offset continued price declines.
* Appliances reported somewhat lower operating profit in the first
quarter of 1996 on relatively flat revenues, as cost inflation and lower
prices more than offset improved volume across all core domestic product
lines.
* Broadcasting's operating profit was significantly ahead of last
year on a strong increase in revenues reflecting NBC's excellent ratings
performance, particularly in prime-time, and much improved results at its
owned-and-operated stations.
* Net earnings of GE Capital Services were up 16% to $650 million
primarily as a result of strong performances in Equipment Management,
Specialty Insurance and Consumer Services activities. Higher earnings in
Equipment Management and Consumer Services were attributable to a higher
average level of invested assets, partially offset by higher provisions for
losses on financing receivables. The improvement in Specialty Insurance,
principally Employers Reinsurance Corporation, was attributable to
increased premium and investment income, partially offset by higher
reserves for insurance losses, related to Frankona and Aachen Reinsurance
Groups which were acquired late in 1995, as well as higher realized gains
on sales of investment securities.
* Industrial Products and Systems revenues were about the same as
last year, reflecting modest volume increases in most businesses offset by
lower volume at Transportation, which had very strong shipments in the
first quarter of 1995. Operating profit increased slightly as productivity,
particularly at Transportation and Electrical Distribution & Control, and
slightly higher pricing in most businesses offset somewhat lower operating
profit at Lighting, largely the result of cost inflation.
* Materials operating profit was considerably higher this year on
revenues that were about the same as last year. The improvement in
operating profit reflected favorable experience with purchased material
costs and slightly higher prices which more than offset lower volume.
* Power Generation reported a good increase in revenues primarily as
a result of sharply higher volume in gas turbines and higher compressor
shipments at Nuovo Pignone, its Italian energy equipment subsidiary.
Segment operating profit was somewhat higher, as productivity and volume
increases more than offset continued pricing pressures and cost inflation.
* Technical Products & Services operating profit was slightly higher
this year on flat revenues, as productivity and improved volume in both
Medical Systems and GEIS more than offset the effects of lower selling
prices.
* All other operating profit and revenues, principally from the
licensing of GE technology to others, were about the same as last year.
B. FINANCIAL CONDITION
With respect to the Condensed Statement of Financial Position,
consolidated assets of $230.2 billion were $2.2 billion higher than at
December 31, 1995.
GE's assets were $56.7 billion at March 31, 1996, an increase of $1.0
billion from December 31, 1995. The increase was principally attributable
to higher inventories ($0.5 billion), reflecting principally normal
seasonal increases in several GE businesses, and higher intangible assets
($0.4 billion), reflecting primarily the acquisition of Outlet
Communications by NBC which was completed in the first quarter.
GECS' assets increased by $1.0 billion from the end of 1995. GE
Capital Corporation's financing receivables, which, net of allowance for
losses, aggregated $92.2 billion at the end of the first quarter, decreased
$1.1 billion from the year-end 1995 level of $93.3 billion. The decrease
resulted principally from the combination of normal seasonal declines in
credit card receivables and a shift in the nature of certain new auto lease
volume from financing leases in 1995 to operating leases in 1996.
Management believes that GE Capital's allowance for losses of $2.5 billion
(2.63% of the receivables balance at March 31, 1996 -- the same as year end
1995) are appropriate given the strength and diversity of the portfolio and
current economic circumstances. All Other Assets increased by $1.5 billion
from year-end 1995, principally as a result of increased investments in
nonconsolidated affiliates. Property, plant and equipment, which consists
principally of equipment leased to others on operating leases, increased
$0.6 billion principally as a result of the shift in auto lease volume
discussed above.
Consolidated liabilities of $198.0 billion at March 31, 1996, were
$2.5 billion higher than the year-end 1995 balance of $195.5 billion. GE's
liabilities were up $1.3 billion; GECS' liabilities increased $1.1 billion.
GE's total borrowings were $5.1 billion ($2.8 billion short-term and
$2.3 billion long-term) at March 31, 1996, an increase of $1.2 billion from
December 31, 1995. GE's ratio of debt to total capital at the end of March
1996 was 14.7% compared with 11.6% at the end of last year and 14.7% at
March 31, 1995. Other changes in GE's liabilities comprised numerous,
relatively small items.
GECS' liabilities increased by $1.1 billion, principally because of
the additional $1.3 billion of borrowings to finance investments and asset
growth. Short-term borrowings were essentially unchanged from year-end
1995 at $62.9 billion. Long-term borrowings increased by $1.3 billion to
$50.1 billion, reflecting a continuing shift in the financing mix to longer-
term debt.
With respect to cash flows, consolidated cash and equivalents were
$3.2 billion at March 31, 1996, an increase of about $0.3 billion during
the quarter. Cash and equivalents were $2.8 billion at March 31, 1995, an
increase of about $0.2 billion during last year's first quarter.
GE's cash and equivalents increased $0.1 billion to $1.0 billion at
March 31, 1996, compared with $0.9 billion at year end 1995. During the
first quarter of 1996, operating cash flows increased to $1.2 billion, up
from $0.5 billion in the first quarter of 1995, the result of relatively
insignificant improvements in a number of sources of such cash flows. Cash
used for investing activities ($0.7 billion) principally represented
acquisitions and investments in new plant and equipment for a wide variety
of capital expenditure projects to reduce costs and improve efficiencies.
Cash used for financing activities ($0.3 billion) included $0.8 billion for
dividends paid to share owners, representing a 12% increase in the per-
share dividend rate compared with first quarter of last year, and $0.9
billion for repurchases of the Company's common stock under the share
repurchase program. The dividends and share repurchase were partially
offset by $1.7 billion provided from the combination of higher borrowings
and dispositions of GE shares from treasury.
GE's cash and equivalents decreased $0.2 billion to $1.2 billion at
March 31, 1995, compared with $1.4 billion at year end 1994. During the
first quarter of 1995, cash provided from operating activities totaled $0.5
billion, despite the use of cash for (1) normal seasonal increases in
inventories ($0.7 billion), and (2) "all other operating activities" ($0.9
billion) which represented net cash used for a wide variety of relatively
small items. Cash used for investing activities ($0.3 billion) principally
represented investments in new plant and equipment for a wide variety of
capital expenditure projects to reduce costs and improve efficiencies.
Cash used for financing activities ($0.4 billion) included $0.7 billion for
dividends paid to share owners, representing a 14% increase in the per-
share dividend rate compared with first quarter of last year, and $0.8
billion for repurchases of the Company's common stock under the share
repurchase program. The dividends and share repurchase were partially
offset by $1.2 billion provided from the combination of higher borrowings
and dispositions of GE shares from treasury.
GECS' cash and equivalents increased $0.2 billion during the first
quarter of 1996, when $1.5 billion of cash was provided from operating
activities. The principal use of GECS' cash during the period was for
investing activities ($2.2 billion), which was more than accounted for by
additions to equipment that is provided to third parties on operating
leases ($1.4 billion), partially offset by lower financing receivables
($0.7 billion).
GECS' cash and equivalents increased $0.4 billion during the first
quarter of 1995, when $1.4 billion of cash was provided from operating
activities of continuing operations. The principal use of GECS' cash during
the period was for investing activities ($5.2 billion), which was more than
accounted for by additions to equipment that is provided to third parties
on operating leases ($1.3 billion), higher financing receivables ($2.2
billion), and payments for the acquisitions of four businesses (aggregating
$1.6 billion).
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
As previously reported, following the Company's announcement on
April 17, 1994, of a $210 million charge to net earnings based upon its
discovery of false trading profits at its indirect subsidiary, Kidder,
Peabody & Co., Incorporated ("Kidder"), the United States Securities and
Exchange Commission ("SEC"), the United States Attorney for the Southern
District of New York, and the New York Stock Exchange initiated
investigations relating to the false trading profits. On January 9, 1996,
the SEC initiated administrative enforcement proceedings against the former
head of Kidder's government securities trading desk, Joseph Jett, alleging
that he engaged in securities fraud and other violations and against two of
his former supervisors for failure to supervise. Also, two civil suits
purportedly brought on behalf of the Company as shareholder derivative
actions were filed in New York State Supreme Court in New York County.
Both suits claim that the Company's directors breached their fiduciary
duties to the Company by failing to adequately supervise and control the
Kidder employee responsible for the irregular trading. One suit, claiming
damages of over $350 million, was filed on May 10, 1994, by the Teachers'
Retirement System of Louisiana against the Company, its directors (other
than Messrs. Dammerman, Opie and Penske), Kidder, its parent, Kidder,
Peabody Group Inc., and certain of Kidder's former officers and directors.
The other suit was filed on June 3, 1994, by William Schrank and others
against the Company's directors claiming unspecified damages and other
relief. Both suits were consolidated in an amended complaint filed on March
6, 1995. On May 19, 1995, the Company and the director defendants moved to
dismiss the amended consolidated complaint for failure to make a pre-
litigation demand, among other reasons. On April 16, 1996, the court
dismissed the amended consolidated complaint for failure to make a pre-
litigation demand. In addition, various shareholders of the Company have
filed two purported class action suits claiming that the Company and
Kidder, and certain of Kidder's former officers and employees, allegedly
violated federal securities laws by issuing statements concerning the
Company's financial condition that included the false trading profits at
Kidder, and seeking compensatory damages for shareholders who purchased the
Company's stock beginning as early as January 1993. The defendants filed
motions to dismiss these purported class action suits. On October 4, 1995,
the court dismissed the complaint against the Company, but denied the
motion to dismiss the complaint against Kidder. On November 3, 1995, the
plaintiffs in the case against the Company appealed the trial court's
dismissal of their complaint to the Second Circuit Court of Appeals.
Environmental
As previously reported, in September of 1993, the Environmental
Protection Agency notified the Company that it was seeking at least
$600,000 in penalties for alleged violations of the Clean Air Act at its
Lynn, Massachusetts, Aircraft Engines facility. The allegations include
the failure to undergo required permit reviews. The Company agreed to
settle the matter in March, 1996 for $400,000.
As previously reported, in January 1995, the Louisiana Department of
Environmental Quality announced that it was seeking a penalty of $101,884
for alleged violations of its Groundwater Protection Act at the Company's
New Orleans, Louisiana facility. The Company has tentatively settled the
matter for a $70,000 Supplemental Environmental Project.
In April, 1996, the Environmental Protection Agency filed an action
and stated that it was seeking $300,000 in penalties for the Company's
failure to adequately respond to an Agency information request in 1994.
The Company will be filing an Answer and entering into settlement
discussions with the government.
In March, 1995, the Environmental Protection Agency stated that it
was seeking $300,000 in penalties for alleged violations of the Clean Air
Act at the Company's Waterford, New York facility. Settlement discussions
are underway.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits
Exhibit 11. Computation of Per-Share Earnings.
Exhibit 12. Computation of Ratio of Earnings to Fixed
Charges.
Exhibit 27. Financial Data Schedule
b. Reports on Form 8-K during the quarter ended March 31, 1996.
No reports on Form 8-K were filed during the quarter ended
March 31, 1996.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
General Electric Company
(Registrant)
May 14, 1996 Philip D. Ameen
- ------------ ---------------------------------------------------
Date Vice President and Comptroller
Duly Authorized Officer and Principal Accounting
Officer
<PAGE>
Exhibit 11
GENERAL ELECTRIC COMPANY
COMPUTATION OF PER SHARE EARNINGS
<TABLE>
(Shares in thousands; dollar amounts, except
earnings per share, in millions)
<CAPTION>
Fully
Earnings Primary diluted
Three months ended March 31, 1996 per common earnings earnings
- --------------------------------- share per share per share
---------- ---------- ----------
<S> <C> <C> <C>
Net earnings applicable to common stock $1,517 $1,517 $1,517
Dividend equivalents (net of tax) applicable
to deferred incentive compensation shares - 2 2
-------- -------- --------
Earnings for per-share calculations $1,517 $1,519 $1,519
-------- -------- --------
Average number of shares outstanding 1,663,134 1,663,134 1,663,134
Average number of deferred incentive
compensation shares - 7,998 7,998
Average stock option shares - 20,142 20,787
Average number of restricted stock units - 1,744 1,783
---------- ---------- ----------
Shares for earnings calculation 1,663,134 1,693,018 1,693,702
---------- ---------- ----------
Earnings per share $0.91 $0.90 $0.90
- ------------------ ======== ======== ========
<CAPTION>
Fully
Earnings Primary diluted
Three months ended March 31, 1995 per common earnings earnings
- --------------------------------- share per share per share
---------- ---------- ----------
<S> <C> <C> <C>
Net earnings applicable to common stock $1,372 $1,372 $1,372
Dividend equivalents (net of tax) applicable
to deferred incentive compensation shares - 2 2
-------- -------- --------
Earnings for per-share calculations $1,372 $1,374 $1,374
-------- -------- --------
Average number of shares outstanding 1,699,922 1,699,922 1,699,922
Average number of deferred incentive
compensation shares - 8,688 8,688
Average stock option shares - 10,858 11,641
Average number of restricted stock units - 1,307 1,330
---------- ---------- ----------
Shares for earnings calculation 1,699,922 1,720,775 1,721,581
---------- ---------- ----------
Earnings per share $0.81 $0.80 $0.80
- ------------------ ======== ======== ========
</TABLE>
<PAGE>
EXHIBIT 12
GENERAL ELECTRIC COMPANY
RATIO OF EARNINGS TO FIXED CHARGES
<TABLE>
(Dollars in millions) Three months ended
March 31, 1996
<S> <C>
GE except GECS
"Earnings" <F1> $2,011
Less: Equity in undistributed earnings
of General Electric Capital
Services, Inc. <F2> (424)
Plus: Interest and other financial
charges included in expense 143
One-third of rental expense <F3> 44
------
Adjusted "earnings" $1,774
======
Fixed Charges:
Interest and other financial charges $143
Interest capitalized 3
One-third of rental expense <F3> 44
------
Total fixed charges $190
======
Ratio of earnings to fixed charges 9.34
======
General Electric Company and consolidated affiliates
"Earnings" <F1> $2,378
Plus: Interest and other financial
charges included in expense 1,884
One-third of rental expense <F3> 85
------
Adjusted "earnings" $4,347
======
Fixed Charges:
Interest and other financial charges $1,884
Interest capitalized 9
One-third of rental expense <F3> 85
------
Total fixed charges $1,978
======
Ratio of earnings to fixed charges 2.20
======
<FN>
<F1> Earnings before income taxes and minority interest.
<F2> Earnings after income taxes, net of dividends.
<F3> Considered to be representative of interest factor in rental expense.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
consolidated financial statements for the period ended March 31, 1996
and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<CIK> 0000040545
<NAME> GENERAL ELECTRIC COMPANY
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 3,170
<SECURITIES> 40,753
<RECEIVABLES> 0<F1>
<ALLOWANCES> 0<F1>
<INVENTORY> 4,894
<CURRENT-ASSETS> 0<F2>
<PP&E> 47,063
<DEPRECIATION> 20,815
<TOTAL-ASSETS> 230,213
<CURRENT-LIABILITIES> 0<F2>
<BONDS> 52,306
0
0
<COMMON> 594
<OTHER-SE> 28,677
<TOTAL-LIABILITY-AND-EQUITY> 230,213
<SALES> 7,241
<TOTAL-REVENUES> 9,714<F3>
<CGS> 5,210
<TOTAL-COSTS> 6,933<F4>
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0<F1>
<INTEREST-EXPENSE> 1,875
<INCOME-PRETAX> 2,318
<INCOME-TAX> 801
<INCOME-CONTINUING> 1,517
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,517
<EPS-PRIMARY> 0.90
<EPS-DILUTED> 0.90
<FN>
<F1>Not disclosed in interim periods.
<F2>Not applicable to consolidated GE.
<F3>GE sales of goods ($7,241) and services ($2,473).
<F4>GE cost of goods ($5,210) and services ($1,723) sold.
</FN>
</TABLE>
