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our success in executing and completing, including obtaining regulatory approvals and satisfying other closing conditions for, GE Industrial and GE Capital business or asset dispositions or other announced transactions, including our planned separation of GE Healthcare and dispositions of GE Transportation and BHGE, the pricing, timing, and anticipated proceeds from those or other transactions and potential trailing liabilities;

•	GE’s liquidity and the amount and timing of our GE Industrial cash flows and earnings, which may be impacted by customer, competitive, contractual and other dynamics and conditions;

•	our capital allocation plans, as such plans may change including with respect to the timing and amount of GE dividends, organic investments, including research and development, investments in Digital and capital expenditures, the repayment or allocation of our outstanding debt obligations, pension funding contributions, acquisitions, joint ventures and other strategic actions;

•	our ability to maintain our current short- and long-term credit ratings and the impact on our funding costs and competitive position if we do not do so;

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customer actions or market developments such as reduced demand for equipment and services and other challenges in our Power business, other shifts in the competitive landscape for our products and services, changes in economic conditions, including oil prices, early aircraft retirements and other factors that may affect the level of demand and financial performance of the major industries and customers we serve;

•	changes in law, economic and financial conditions, including the effect of enactment of U.S. tax reform or other tax law changes, trade policy and tariffs, interest and exchange rate volatility, commodity and equity prices and the value of financial assets;

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GE Capital's capital and liquidity needs, including in connection with GE Capital’s run-off insurance operations and related strategic actions that we may pursue, the impact of conditions in the financial and credit markets on GE Capital's ability to sell financial assets, GE Capital’s leverage and credit ratings, the availability and cost of GE Capital funding and GE Capital's exposure to counterparties;

•	pending and future mortgage loan repurchase claims, other litigation claims and the U.S. Department of Justice's investigation under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 and other investigations in connection with WMC, which may affect our estimates of liability, including possible loss estimates;

•	our ability to launch new products in a cost-effective manner;

•	our ability to increase margins through implementation of the new GE operating system, restructuring and other cost reduction measures;

•	our ability to convert pre-order commitments/wins into orders/bookings; and the price we realize on orders/bookings since commitments/wins are stated at list prices;

•	the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of WMC, Alstom, SEC and other investigative and legal proceedings;

•	our success in integrating acquired businesses and operating joint ventures, and our ability to realize revenue and cost synergies from announced transactions, acquired businesses and joint ventures, including Alstom and BHGE;

•	the impact of potential product safety failures and related reputational effects;

•	the impact of potential information technology, cybersecurity or data security breaches;

•	the other factors that are described in "Forward-Looking Statements" in BHGE’s most recent earnings release or SEC filings; and

•	the other factors that are described in "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2017.

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•	General Electric or the Company – the parent company, General Electric Company.

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GE – the adding together of all affiliates except GE Capital, whose continuing operations are presented on a one-line basis, giving effect to the elimination of transactions among such affiliates. As GE presents the continuing operations of GE Capital on a one-line basis, certain intercompany profits resulting from transactions between GE and GE Capital have been eliminated at the GE level. We present the results of GE in the center column of our consolidated statements of earnings (loss), financial position and cash flows. An example of a GE metric is GE Industrial free cash flows (Non-GAAP).

•	General Electric Capital Corporation or GECC – predecessor to GE Capital Global Holdings, LLC.

•	GE Capital Global Holdings, LLC or GECGH – the adding together of all affiliates of GECGH, giving effect to the elimination of transactions among such affiliates.

•	GE Capital or Financial Services – refers to GECGH and is the adding together of all affiliates of GE Capital giving effect to the elimination of transactions among such affiliates. We present the results of GE Capital in the right-side column of our consolidated statements of earnings (loss), financial position and cash flows.

•	GE consolidated – the adding together of GE and GE Capital, giving effect to the elimination of transactions between the two. We present the results of GE consolidated in the left-side column of our consolidated statements of earnings (loss), financial position and cash flows.

•	GE Industrial – GE excluding the continuing operations of GE Capital. We believe that this provides investors with a view as to the results of our industrial businesses and corporate items. An example of a GE Industrial metric is GE Industrial free cash flows (Non-GAAP), as defined in Other Terms Used by GE below.

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Industrial segment – the sum of our seven industrial reporting segments, without giving effect to the elimination of transactions among such segments and between these segments and our financial services segment. This provides investors with a view as to the results of our industrial segments, without inter-segment eliminations and corporate items. An example of an industrial segment metric is industrial segment revenue growth.

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Baker Hughes, a GE company or BHGE – following the combination of our Oil & Gas business with Baker Hughes Incorporated, our Oil & Gas segment is comprised of our ownership interest of approximately 62.5% in the new company formed in the transaction, Baker Hughes, a GE Company (BHGE). We consolidate 100% of BHGE's revenues and cash flows, while our Oil & Gas segment profit and net income are derived net of minority interest of approximately 37.5% attributable to BHGE's Class A shareholders. References to "Baker Hughes" represent legacy Baker Hughes Incorporated operating activities which, in certain cases, have been excluded from our results for comparative purposes.

•	Total segment – the sum of our seven industrial segments and one financial services segment, without giving effect to the elimination of transactions between such segments. This provides investors with a view as to the results of all of our segments, without inter-segment eliminations and corporate items.

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Backlog and remaining performance obligation (RPO) – backlog is unfilled customer orders for products and product services (expected life of contract sales for product services). RPO, a defined term under GAAP, is backlog excluding any purchase order that provides the customer with the ability to cancel or terminate without incurring a substantive penalty, even if the likelihood of cancellation is remote based on historical experience. We plan to continue reporting backlog as we believe that it is a useful metric for investors, given its relevance to total orders.

•	Continuing earnings – we refer to the caption “earnings from continuing operations attributable to GE common shareowners” as continuing earnings.

•	Continuing earnings per share (EPS) – when we refer to continuing earnings per share, it is the diluted per-share amount of “earnings from continuing operations attributable to GE common shareowners.”

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Digital revenues – revenues related to internally developed software (including PredixTM) and associated hardware, and software solutions that improve our customers’ asset performance. These revenues are largely generated from our operating businesses and are included in their segment results. Revenues of "Non-GE Verticals" refer to GE Digital revenues from customers operating in industries where GE does not have a presence.

•	Equipment leased to others (ELTO) – rental equipment we own that is available to rent and is stated at cost less accumulated depreciation.

•	GE Capital Exit Plan - our plan, announced on April 10, 2015, to reduce the size of our financial services businesses through the sale of most of the assets of GE Capital, and to focus on continued investment and growth in our industrial businesses.

•	GE Industrial free cash flows (Non-GAAP) – GE CFOA adjusted for gross GE additions to property, plant and equipment and internal-use software, which are included in cash flows from investing activities, and excluding dividends from GE Capital, GE Pension Plan funding, and taxes related to business sales.

•	Adjusted GE Industrial free cash flows (Non-GAAP) – GE Industrial free cash flows adjusted for Oil & Gas CFOA, gross Oil & Gas additions to property, plant and equipment and internal-use software, and including the BHGE Class B shareholder dividend.

•	GE Industrial profit margin (GAAP) – GE total revenues plus other income minus GE total costs and expenses less GE interest and other financial charges and non-operating benefit costs divided by GE total revenues plus other income.

•	Adjusted GE Industrial profit margin (Non-GAAP) – GE Industrial profit margin excluding gains (losses) and restructuring and other charges plus noncontrolling interests.

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GE Industrial structural costs (Non-GAAP) – Industrial structural cost include segment structural costs excluding the impact of restructuring and other charges, business acquisitions and dispositions, foreign exchange, plus total Corporate operating profit excluding restructuring and other charges and gains. The Baker Hughes acquisition is represented on a pro-forma basis, which means we calculated our structural costs by including legacy Baker Hughes results for the three and six months ended June 30, 2017.

•	Net earnings (loss) – we refer to the caption “net earnings (loss) attributable to GE common shareowners” as net earnings.

•	Net earnings (loss) per share (EPS) – when we refer to net earnings (loss) per share, it is the diluted per-share amount of “net earnings attributable to GE common shareowners.”

•	Adjusted continuing earnings (Non-GAAP) – continuing earnings excluding the impact of non-operating benefit costs, after tax.

•	Adjusted continuing earnings per share (Non-GAAP) – when we refer to GE earnings per share, it is the diluted per-share amount of “adjusted continuing earnings.”

•	Adjusted earnings (Non-GAAP) – continuing earnings excluding the impact of non-operating benefit costs, gains (losses) and restructuring and other items, after tax, and the impact of U.S. tax reform.

•	Adjusted earnings per share (Non-GAAP) – when we refer to adjusted earnings per share, it is the diluted per-share amount of “adjusted earnings.”

•	Organic revenues (Non-GAAP) – revenues excluding the effects of acquisitions, dispositions and translational foreign currency exchange.

•	Product services agreements – contractual commitments, with multiple-year terms, to provide specified services for products in our Power, Renewable Energy, Oil & Gas, Aviation and Transportation installed base – for example, monitoring, maintenance, service and spare parts for a gas turbine/generator set installed in a customer’s power plant.

•	Revenues – revenues comprise sales of goods, sales of services for our industrial businesses and GE Capital revenues from services for our financial services businesses.

•	Segment profit – refers to the profit of the industrial segments and the net earnings of the financial services segment, both of which include other income. See the Segment Operations section within the MD&A for a description of the basis for segment profits.

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Services – for purposes of the financial statement display of sales and costs of sales in our Statement of Earnings (Loss), “goods” is required by SEC regulations to include all sales of tangible products, and “services” must include all other sales, including other services activities. In our MD&A section of this report, we refer to sales under product services agreements and sales of both goods (such as spare parts and equipment upgrades) and related services (such as monitoring, maintenance and repairs) as sales of “services,” which is an important part of our operations.

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•	GE Industrial segment organic revenues

•	GE Industrial structural costs

•	GE pre-tax earnings from continuing operations, excluding GE Capital earnings (loss) from continuing operations and the corresponding effective tax rates

•	Adjusted earnings (loss)

•	Adjusted earnings (loss) per share (EPS)

•	Adjusted GE Industrial profit and profit margin (excluding certain items)

•	Adjusted Oil & Gas segment profit

•	GE Industrial Free Cash Flow (FCF) and Adjusted GE Industrial FCF

•	GE Industrial net debt

(a)	Beginning in the third quarter of 2017, the Energy Connections business within the former Energy Connections & Lighting segment was combined with the Power segment and presented as one reporting segment called Power. As a result of this combination, our GE Lighting and Current, powered by GE (Current) businesses are now reported as a separate segment called Lighting.

(b)	Beginning in the third quarter of 2017, our Oil & Gas segment is comprised of our ownership interest of approximately 62.5% in BHGE. We consolidate 100% of BHGE's revenues and cash flows, while our Oil & Gas segment profit and net income are derived net of minority interest of approximately 37.5% attributable to BHGE's Class A shareholders.

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•	In the fourth quarter of 2017, we announced our plan to significantly reduce the size of our Board of Directors at the 2018 annual shareowners meeting. On April 25, 2018, 12 directors were elected to the Board of Directors, with increased focus on relevant industry expertise, capital allocation and accounting and financial reporting.

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During the first quarter of 2018, we recorded a reserve of $1.5 billion in discontinued operations in connection with the U.S. Department of Justice's (DOJ) ongoing investigation regarding potential violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) by WMC and GE Capital. See Legal Proceedings and Note 19 to the consolidated financial statements for further information.

•	On June 26, 2018, Larry Culp, former CEO of Danaher, was elected as lead director effective that same date, succeeding Jack Brennan, who is completing his last term on the Board. Mr. Culp will also chair the Board’s Management Development and Compensation Committee.

•	On July 26, 2018, we announced that Jan Hauser, GE's Vice President, Controller and Chief Accounting Officer, had communicated her intention to retire from GE. GE plans to appoint Thomas Timko, currently the chief accounting officer of General Motors Company, as her successor, effective on or about September 10, 2018.

•	In September 2017, we announced an agreement to sell our Industrial Solutions business within our Power segment for approximately $2.6 billion to ASEA Brown Boveri (ABB), a Swiss-based engineering company. On June 29, 2018, we completed the sale and recognized a pre-tax gain of $0.3 billion in the second quarter of 2018.

•	In February 2018, we entered into an agreement to sell our GE Lighting business in Europe, the Middle East, Africa and Turkey and our Global Automotive Lighting business to a company controlled by a former GE executive in the region. We closed substantially all of this transaction in the second quarter of 2018.

•	In April 2018, we announced an agreement to sell our Enterprise Financial Management, Ambulatory Care Management and Workforce Management assets, comprising our Healthcare segment’s Value-Based Care Division, to Veritas Capital, a private equity investment firm, for approximately $1.1 billion in cash. This transaction closed on July 10, 2018.

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In May 2018, we announced an agreement to merge our Transportation segment with Wabtec Corp, a U.S. rail equipment manufacturer. Under the agreement, which has been approved by the Boards of Directors of Wabtec and GE, GE will receive $2.9 billion in cash at closing, and GE and its shareholders will receive a 50.1% ownership interest in the combined company, with GE holding 9.9% and GE shareholders holding the remaining 40.2%. Wabtec shareholders will retain 49.9% of the combined company. The deal is expected to close in early 2019, subject to customary closing conditions and regulatory approval.

•	In June 2018, we announced an agreement to sell our Distributed Power business within our Power segment to Advent International, a global private equity investor, for $3.3 billion. The deal is expected to close by the fourth quarter 2018, subject to customary closing conditions and regulatory approvals.

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In June 2018, we announced the results of our strategic review and our intention to focus on our Power, Renewable Energy and Aviation businesses. We plan to separate GE Healthcare into a standalone company over the next 12 to 18 months, pursue an orderly separation from BHGE over the next two to three years and substantially reduce GE Industrial net debt* by approximately $25 billion by the end of 2020. In addition, we announced our plan for a smaller corporate headquarters focused primarily on strategy, capital allocation, talent and governance, a move which is expected to generate at least $500 million in corporate savings by the end of 2020. While we announced the strategic portfolio actions for Transportation, GE Healthcare and BHGE, these businesses have not met the accounting criteria for held for sale classification. That classification will depend on the nature and timing of the transaction.

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(a)	GE Industrial refers to GE excluding the continuing operations of GE Capital. Industrial segment refers to the sum of our seven industrial reporting segments, without giving effect to corporate items or the elimination of transactions among such segments and between these segments and our financial services segment.

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Industrial segment revenues increased $1.1 billion, or 4%, as increases at Oil & Gas, Aviation and Healthcare were partially offset by decreases at Power, Renewable Energy, Transportation and Lighting. This increase was driven by the net effects of acquisitions of $2.8 billion, primarily attributable to Baker Hughes, and the effects of a weaker U.S. dollar of $0.6 billion, partially offset by the net effects of dispositions of $0.6 billion, primarily attributable to the absence of Water following its sale in the third quarter of 2017. Excluding the effects of acquisitions, dispositions and foreign currency translation, industrial segment organic revenues* decreased $1.7 billion.

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Industrial segment revenues increased $3.3 billion, or 6%, as increases at Oil & Gas, Aviation and Healthcare were partially offset by decreases at Power, Renewable Energy, Transportation and Lighting. This increase was driven by the net effects of acquisitions of $5.5 billion, primarily attributable to Baker Hughes, and the effects of a weaker U.S. dollar of $1.4 billion, partially offset by the net effects of dispositions of $1.1 billion, primarily attributable to the absence of Water following its sale in the third quarter of 2017. Excluding the effects of acquisitions, dispositions and foreign currency translation, industrial segment organic revenues* decreased $2.6 billion.

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•	Corporate profit increased $0.8 billion primarily attributable to net gains on business dispositions of $0.3 billion, unrealized gains on investments of $0.3 billion and decreased restructuring and other costs of $0.2 billion.

•	Industrial segment profit decreased $0.5 billion, or 14%, with decreases at Power, Renewable Energy, Oil & Gas and Transportation, partially offset by higher profit at Aviation, Healthcare and Lighting. Industrial segment organic profit* decreased $0.4 billion, primarily driven by negative variable cost productivity, lower volume and pricing pressure at Power.

•	Foreign exchange adversely affected GE Industrial profit by an insignificant amount in the second quarter of 2018.

•	Corporate profit increased $1.6 billion primarily attributable to decreased restructuring and other costs of $0.9 billion, unrealized gains on investments of $0.3 billion, net gains on business dispositions of $0.2 billion and decreased adjusted Corporate operating costs* of $0.2 billion.

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Industrial segment profit decreased $0.6 billion, or 10%, with decreases at Power, Oil & Gas, Renewable Energy and Lighting, partially offset by higher profit at Aviation, Healthcare and Transportation. This decrease in industrial segment profit was primarily driven by restructuring and business development costs related to Baker Hughes of $0.5 billion and the net effects of dispositions of $0.1 billion, primarily associated with the absence of Water following its sale in the third quarter of 2017, partially offset by the net effects of acquisitions $0.3 billion, largely associated with Baker Hughes. Excluding these items, industrial segment organic profit* decreased $0.3 billion, primarily driven by negative variable cost productivity, lower volume and pricing pressure at Power.

•	Foreign exchange adversely affected GE Industrial profit by $0.1 billion in the first half of 2018.

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•	Interest and other financial charges, income taxes, non-operating benefit costs and GE preferred stock dividends are excluded in determining segment profit for the industrial segments.

•	Interest and other financial charges, income taxes, non-operating benefit costs and GE Capital preferred stock dividends are included in determining segment profit (which we sometimes refer to as “net earnings”) for the Capital segment.

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(a)	Beginning in the third quarter of 2017, the Energy Connections business within the former Energy Connections & Lighting segment was combined with the Power segment and presented as one reporting segment called Power. As a result of this combination, our GE Lighting and Current, powered by GE (Current) businesses are now reported as a separate segment called Lighting.

(b)	Oil & Gas segment profit excluding restructuring and other charges* was $222 million and $402 million for the three and six months ended June 30, 2018.

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(a)	$12.0 billion and $23.8 billion, excluding $1.2 billion and $2.3 billion related to Baker Hughes* for the three and six months ended June 30, 2018, respectively.

(b)	$13.8 billion and $26.9 billion, excluding $1.6 billion and $3.1 billion related to Baker Hughes* for the three and six months ended June 30, 2018, respectively.

(c)

For the purposes of the MD&A, "services" refers to sales under product services agreements and sales of both goods (such as spare parts and equipment upgrades) and related services (such as monitoring, maintenance and repairs). For the purposes of the financial statement display of sales and costs of sales in our Statement of Earnings (Loss), “goods” is required by SEC regulations to include all sales of tangible products, and “services” must include all other sales, including other services activities.

(d)	Industrial segment refers to the sum of our seven industrial reporting segments, without giving effect to corporate items or the elimination of transactions among such segments and between these segments and our financial services segment. Therefore, industrial segment revenues will not agree to GE revenues as shown in the Statement of Earnings (Loss).

(a)	$3.2 billion and $6.1 billion, excluding an insignificant amount and $(0.2) billion related to Baker Hughes* for the three and six months ended June 30, 2018, respectively.

•	Industrial segment revenues increased $1.1 billion, or 4%, driven by increases at Oil & Gas primarily due to the acquisition of Baker Hughes, Aviation and Healthcare, partially offset by decreases at Power, Renewable Energy, Transportation and Lighting.

•	Industrial segment profit decreased $0.5 billion, or 14%, driven by lower profit at Oil & Gas primarily due to restructuring costs associated with Baker Hughes, and Power driven by lower volume, unfavorable price and the absence of Water. Further decrease was due to lower profit at Renewable Energy and Transportation, partially offset by higher profit at Aviation and Healthcare.

•	Industrial segment margin decreased 230 basis points to 11.0% in 2018 from 13.3% in 2017 driven by negative variable cost productivity, price pressure, business mix. The decrease in industrial segment margin reflects decreases at Power, Oil & Gas, Renewable Energy, Aviation and Transportation, offset by increases at Lighting and Healthcare.

•	Industrial segment revenues increased $3.3 billion, or 6%, driven by increases at Oil & Gas primarily due to the acquisition of Baker Hughes, Aviation and Healthcare, partially offset by decreases at Power, Renewable Energy, Transportation and Lighting.

•	Industrial segment profit decreased $0.6 billion, or 10%, driven by lower profit at Oil & Gas primarily due to restructuring costs associated with Baker Hughes, Power driven by lower volume, unfavorable price and the absence of Water. Further decrease was due to lower profit at Renewable Energy, partially offset by higher profit at Aviation, Healthcare and Transportation.

•	Industrial segment margin decreased 190 basis points to 10.4% in 2018 from 12.3% in 2017 driven by negative variable cost productivity, business mix and price pressure. The decrease in industrial segment margin reflects decreases at Oil & Gas, Power and Renewable Energy, offset by increases at Transportation, Aviation, and Healthcare.

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Equipment revenues decreased primarily at Gas Power Systems due to lower unit sales, including 12 fewer aeroderivative units as well as 14 fewer gas turbines and six fewer Heat Recovery Steam Generators. Services revenues decreased primarily due to the absence of Water following the sale in September 2017 as well as ten fewer AGP upgrades. Revenues also decreased due to price pressure, offset by the effects of a weaker U.S. dollar versus the euro.

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The decrease in profit was due to lower volume including the absence of Water, negative variable cost productivity, lower transactional services revenue and negative mix in our long-term service contracts compared to the prior year. These decreases were partially offset by favorable business mix and cost reduction efforts, excluding the effects of acquisition and disposition activity and foreign exchange.

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Equipment revenues decreased primarily at Gas Power Systems due to lower unit sales, including 21 fewer aeroderivative units as well as 22 fewer gas turbines and 17 fewer Heat Recovery Steam Generators. Services revenues decreased primarily due to the absence of Water following the sale in September 2017 as well as 25 fewer AGP upgrades. Revenues also decreased due to price pressure, offset by the effects of a weaker U.S. dollar versus the euro.

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The decrease in profit was due to lower volume including the absence of Water, negative variable cost productivity, lower transactional services revenue and negative mix in our long-term service contracts compared to the prior year. These decreases were partially offset by favorable business mix and cost reduction efforts, excluding the effects of acquisition and disposition activity and foreign exchange.

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Equipment volume decreased due to 368 fewer wind turbine shipments on a unit basis, or 38% fewer megawatts shipped, than in the prior year. Services volume increased due to 47 more repower units at Onshore Wind as well as a larger installed base resulting in increased contractual stream revenues. Revenues also decreased due to pricing pressure, partially offset by the effects of a weaker U.S. dollar versus the euro.

•	The decrease in profit was primarily due to pricing pressure.

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Equipment volume decreased due to 555 fewer wind turbine shipments on a unit basis, or 35% fewer megawatts shipped, than in the prior year. Services volume increased due to 159 more repower units at Onshore Wind as well as a larger installed base resulting in increased contractual stream revenues. Revenues also increased due to the acquisition of LM Wind in April 2017, which contributed $0.1 billion of inorganic revenue growth in the first half of 2018, and the effects of a weaker U.S. dollar versus the euro and the Chinese renminbi, partially offset by pricing pressure.

•	The decrease in profit was due to pricing pressure, partially offset by materials deflation.

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•	The Baker Hughes acquisition in July 2017 contributed $2.8 billion of revenue growth in the second quarter of 2018. Legacy Oil & Gas equipment revenues decreased due to lower volume primarily at TPS and OFE as a result of the market conditions and lower opening backlog. These decreases were partially offset by the effects of a weaker U.S. dollar versus the euro.

•	The decrease in profit was primarily driven by restructuring and other charges, partially offset by synergies delivered from combining the two companies and favorable business mix.

•	The Baker Hughes acquisition in July 2017 contributed $5.4 billion of revenue growth in the first half of 2018. Legacy Oil & Gas equipment and services revenues decreased due to lower volume primarily at TPS and OFE as a result of the market conditions and lower opening backlog. These decreases were partially offset by the effects of a weaker U.S. dollar versus the euro.

•	The decrease in profit was primarily driven by restructuring and other charges and unfavorable business mix, partially offset by synergies delivered from combining the two companies.

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•	Equipment revenues increased due to 67 more military engine shipments and 70 more commercial units, including 181 more LEAP units partially offset by lower commercial legacy output in CFM and GE90 product lines, versus the prior year. Services revenues increased primarily due to a higher commercial spares shipment rate, as well as higher prices.

•	The increase in profit was mainly due to higher spare engine shipments, product and structural cost productivity and higher prices. These increases were partially offset by an unfavorable business mix driven by negative LEAP margin as well as higher overhaul shop costs due to increased volume and mix.

•	Services revenues increased primarily due to a higher commercial spares shipment rate, as well as higher prices. Equipment revenues also increased due to 85 more military engine shipments and 94 more commercial units, including 290 more LEAP units, versus the prior year, partially offset by lower GEnx shipments and lower legacy commercial output in CFM and GE90 product lines.

•	The increase in profit was mainly due to higher prices, product and structural cost productivity and higher spare engine shipments. These increases were partially offset by an unfavorable business mix driven by negative LEAP margin as well as higher overhaul shop costs due to increased volume and mix.

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Services and equipment revenues increased due to higher volume in Healthcare Systems attributable to global growth in Imaging and Ultrasound in both developed regions such as the U.S. and Europe as well as developing regions such as China and emerging markets. Volume also increased in Life Sciences, driven by Bioprocess and Contrast Imaging. In addition, revenues increased due to the effects of a weaker U.S. dollar versus the euro and Chinese renminbi, partially offset by price pressure at Healthcare Systems.

•	The increase in profit was primarily driven by cost productivity due to cost reduction actions including increasing digital automation, sourcing and logistic initiatives, design engineering and prior year restructuring actions and higher volume. These increases were partially offset by price pressure at Healthcare Systems and investments in programs.

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Services and equipment revenues increased due to higher volume in Healthcare Systems attributable to global growth in Imaging and Ultrasound in both developed regions such as the U.S. and Europe as well as developing regions such as China and emerging markets. Volume increased in Life Sciences, driven by Bioprocess and Contrast Imaging. In addition, revenues increased due to the effects of a weaker U.S. dollar versus the euro and the Chinese renminbi, partially offset by price pressure at Healthcare Systems.

•	The increase in profit was primarily driven by strong volume growth and cost productivity due to cost reduction actions including increasing digital automation, sourcing and logistic initiatives, design engineering and prior year restructuring actions. These increases were partially offset by price pressure at Healthcare Systems, inflation and investments in programs.

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Equipment volume decreased primarily driven by lower locomotive shipments in internationally and in North America due to continuing challenging market conditions. This decrease was partially offset by growth in mining and an increase in services revenues as railroads are running their locomotives longer, and recently unparked locomotives tend to be older units in higher need of servicing and replacement parts, driving an increase in services volume and parts shipped.

•	The decrease in profit was driven by lower equipment volume, partially offset by favorable business mix from a higher proportion of services volume.

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Equipment volume decreased primarily driven by lower locomotive shipments internationally and in North America due to continuing challenging market conditions. This decrease was partially offset by growth in mining and an increase in services revenues as railroads are running their locomotives longer, and recently unparked locomotives tend to be older units in higher need of servicing and replacement parts, driving an increase in services volume and parts shipped.

•	The increase in profit was driven by favorable business mix from a higher proportion of services volume as well as lower engineering spend and the effects of restructuring actions.

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•	Equipment revenues decreased due to Lighting regional exits outside of North America. Excluding the impact of regional exits, equipment revenues increased due to higher LED and Digital volume, partially offset by lower traditional lighting and solar sales, lower LED prices and product mix.

•	The increase in profit was driven by savings from restructuring and decreased investment and controllable spending, partially offset by regional exits, lower prices and product mix.

•	Equipment revenues decreased due to Lighting regional exits outside of North America. Excluding the impact of regional exits, equipment revenues increased due to higher LED and Digital volume, partially offset by lower traditional lighting and solar sales, lower LED prices and product mix.

•	The decrease in profit was driven by regional exits, lower prices and product mix, partially offset by savings from restructuring and decreased investment and controllable spending.

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(a)	In the second quarter of 2018, management of our Working Capital Solutions (WCS) business was transferred to our Treasury operations.

•	GE Capital paid common dividends of $2.0 billion and $4.0 billion to GE in the three and six months ended June 30, 2017, respectively, and did not pay such dividends in the three or six months ended June 30, 2018. In addition, GE Capital does not expect to make a common dividend distribution to GE for the foreseeable future.

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In 2018, we announced plans to take actions to make GE Capital smaller and more focused, including a substantial reduction in the size of GE Capital’s Energy Financial Services and Industrial Finance businesses over the next 24 months (GE Capital strategic shift). As a result, we classified financing receivables of the Energy Financial Services and Industrial Finance businesses as held for sale as we no longer intend to hold these financing receivables for the foreseeable future. See Note 6 to the consolidated financial statements for further information.

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In the first quarter of 2018, GE Capital contributed $3.5 billion of capital to its insurance subsidiaries and expects to contribute approximately an additional $11 billion through 2024 subject to ongoing monitoring by the Kansas Insurance Department and the total amount to be contributed could increase or decrease based upon the results of reserve adequacy testing. GE maintains specified capital levels at these insurance subsidiaries under capital maintenance agreements. We perform premium deficiency testing at least annually. Any future adverse changes in our assumptions could result in an increase to future policy benefit reserves and additional contributions of capital over and above the $11 billion noted above. For example, a hypothetical five percent increase in future claim costs, holding all other assumptions constant, would result in a $1.5 billion increase to our future policy benefit reserves. Similarly, a hypothetical 25 basis point decline in expected investment yield, holding all other assumptions constant would result in a $1.0 billion increase in future policy benefit reserves. Any favorable changes to these assumptions could result in additional margin in our premium deficiency test and higher income over the remaining duration of the portfolio, including higher investment income. See Note 12 to the consolidated financial statements for further information.

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We are actively exploring options to mitigate, reduce or eliminate our reinsurance exposures.  These options include further premium increases, prudent enhancement of investment returns, transferring or terminating reinsurance arrangements, and risk-transfer transactions with third parties.  Certain of these options could have a material financial impact, depending on the timing, extent of risk transfer to a third party, and negotiated terms and conditions of any ultimate arrangements.

•	During the first quarter of 2018, we recorded a reserve of $1.5 billion in discontinued operations in connection with the DOJ ongoing investigation regarding potential violations of FIRREA by WMC and GE Capital. See Legal Proceedings and Note 19 to the consolidated financial statements for further information.

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(a)	Includes gains (losses) on disposed or held for sale businesses.

(b)	Subsequent to the Baker Hughes transaction, restructuring and other charges are included in the determination of segment profit for our Oil & Gas segment.

(c)	Amount is related to our Pivotal Software equity investment for the three and six months ended June 30, 2018.

•	Increase in inter-segment eliminations.

•	$0.3 billion of higher net gains from disposed and held for sale businesses, which included a $0.3 billion gain from the sale of our Industrial Solutions business to ABB in the second quarter of 2018.

•	$0.3 billion of higher unrealized gains related to our equity investment in Pivotal Software.

•	$0.2 billion of lower restructuring and other charges primarily within Oil & Gas, now reported in segment results, and Renewable Energy.

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•	$0.1 billion decrease in inter-segment eliminations.

•	$0.9 billion of lower restructuring and other charges primarily due to Oil & Gas and the non-recurrence of Alstom related restructuring costs in the first quarter of 2017.

•	$0.3 billion of unrealized gains related to our equity investment in Pivotal Software recorded in the second quarter of 2018.

•	$0.2 billion of higher net gains from disposed and held for sale businesses, which included a $0.3 billion gain from the sale of our Industrial Solutions business to ABB in the second quarter of 2018. These decreases were partially offset by $0.1 billion of lower gains due to held for sale adjustments primarily related to our Lighting and Aviation segments.

•	$0.2 billion of lower Corporate costs from restructuring and cost reduction actions.

(a)	Subsequent to the Baker Hughes transaction, restructuring and other charges are included in the determination of segment profit for our Oil & Gas segment.

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(a)	Beginning in the third quarter of 2017, the Energy Connections business within the former Energy Connections & Lighting segment was combined with the Power segment and presented as one reporting segment called Power. As a result of this combination, our GE Lighting and Current, powered by GE (Current) businesses are now reported as a separate segment called Lighting.

(b)	Subsequent to the Baker Hughes transaction, restructuring and other charges are included in the determination of segment profit for our Oil & Gas segment.

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•	Cash, cash equivalents and restricted cash decreased $16.3 billion.

•	Investment securities decreased $2.1 billion, primarily due to maturities of liquidity portfolio investments and a decrease in net unrealized gains, partially offset by net purchases of investment securities at GE Capital. See Note 3 to the consolidated financial statements for additional information.

•	Current receivables decreased $3.4 billion, primarily due to customer collections of receivables sold by GE to GE Capital in prior periods outpacing new volume. See Note 4 to the consolidated financial statements for additional information.

•	Financing receivables - net decreased $2.0 billion, primarily due to the classification of Healthcare Equipment Finance financing receivables at GE Capital as held for sale, in connection with the GE Capital strategic shift. See Note 6 to the consolidated financial statements for additional information.

•	Property, plant and equipment - net decreased $3.0 billion, primarily due to depreciation and amortization of $2.7 billion and the classification of our Distributed Power business in our Power segment as held for sale of $0.3 billion. See Note 7 to the consolidated financial statements for additional information.

•	Goodwill decreased $1.5 billion, primarily due to the classification of our Distributed Power business in our Power segment as held for sale of $1.8 billion and the effects of currency exchange of $0.5 billion, partially offset by purchase accounting adjustments of $0.8 billion. See Note 8 to the consolidated financial statements for additional information.

•

Contract and other deferred assets increased $0.4 billion. Revenues in excess of billings increased $0.4 billion and decreased $0.1 billion for our long-term service and equipment agreements, respectively. In addition, other deferred assets increased $0.1 billion, primarily due to an increase in nonrecurring engineering costs of $0.2 billion partially offset by a decrease in deferred inventory costs of $0.1 billion. See Note 10 to the consolidated financial statements for additional information.

•	All other assets decreased $1.3 billion, primarily due to the adoption of ASU No. 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory, partially offset by the classification of Healthcare Equipment Finance financing receivables at GE Capital as held for sale. See Notes 1 and 6 to the consolidated financial statements for additional information.

•	Deferred income taxes increased $2.1 billion, primarily due to the adoption of ASU No. 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory. See Note 1 to the consolidated financial statements for additional information.

•	Borrowings decreased $19.0 billion, primarily due to net repayments of borrowings at GE Capital of $16.5 billion, net repayments of borrowings at BHGE of $0.7 billion and the effects of currency exchange of $0.5 billion. See Note 11 to the consolidated financial statements for additional information.

•	Investment contracts, insurance liabilities and insurance annuity benefits decreased $1.9 billion, primarily due to a decrease in future policy benefit reserves as a result of a decrease in unrealized gains on debt securities supporting insurance contracts. See Note 12 to the consolidated financial statements for additional information.

•	Non-current compensation and benefits decreased $1.9 billion, primarily due to principal pension plan funding of $1.0 billion.

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(a)	Includes $2.5 billion elimination of other intercompany borrowings between GE and GE Capital.

(a)	The intercompany loans from GE Capital to GE bear the right of offset against amounts owed by GE Capital to GE under the assumed debt agreement.

(a)

At June 30, 2018, $4.1 billion of GE cash, cash equivalents and restricted cash was held in countries with currency controls that may restrict the transfer of funds to the U.S. or limit our ability to transfer funds to the U.S. without incurring substantial costs. These funds are available to fund operations and growth in these countries and we do not currently anticipate a need to transfer these funds to the U.S. Included in this amount was $1.1 billion of BHGE cash and equivalents, which is subject to similar restrictions.

(b)	Included $0.6 billion held in insurance and banking entities which are subject to regulatory restrictions.

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(a)	Consisted of a $20 billion syndicated credit facility extended by 36 banks, expiring in 2021.

(b)	Consisted primarily of a $19.8 billion syndicated credit facility extended by six banks, expiring in 2020.

(c)	Consisted of credit facilities extended by 10 banks, with expiration dates ranging from September 2018 to May 2019.

(d)	Commitments under certain credit facilities in (a) and (b) may be reduced by up to $6.7 billion due to offset provisions for any bank that holds a commitment to lend under both syndicated credit facilities.

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•	No common dividends were paid by GE Capital to GE in the six months ended June 30, 2018 compared with $4.0 billion in the six months ended June 30, 2017.

•	Cash used for GE CFOA (excluding common dividends received from GE Capital in 2017) amounted to $0.8 billion and $0.4 billion in 2018 and 2017, respectively, primarily due to the following:

•

Net earnings for cash flows plus depreciation and amortization of property, plant and equipment, amortization of intangible assets and deferred income taxes of $4.3 billion in 2018 compared with $2.8 billion in 2017. Net earnings for cash flows included a pre-tax gain of $0.3 billion from the sale of our Industrial Solutions business in 2018, which is not included in GE CFOA and is instead reflected as a component of total Proceeds from principal business dispositions within Cash from (used for) investing activities. Net earnings for cash flows also included cash and non-cash pre-tax gains of $0.5 billion from other investments and sales of intangible assets in 2018 and current tax expense of $0.5 billion and $0.8 billion in 2018 and 2017, respectively.

•	Lower growth in contract and other deferred assets of $0.9 billion in 2018 compared with $2.4 billion in 2017, primarily due to the timing of revenue recognized relative to the timing of billings and collections on both our long-term equipment and long-term service agreements and the liquidation of deferred inventory, primarily in our Power segment.

•

An increase in cash used for working capital of $2.2 billion in 2018 compared with $0.2 billion in 2017. This was primarily due to an increase in cash used for current receivables of $1.1 billion, mainly in our Renewable Energy and Aviation segments, an increase in cash used for inventories of $1.0 billion, mainly in our Oil & Gas, Renewable Energy and Aviation segments and an increase in cash used from progress collections of $1.3 billion, mainly in our Power and Aviation segments, partially offset by our Renewable Energy segment. These increases in cash used for working capital were partially offset by an increase in cash generated from accounts payable of $1.3 billion, mainly in our Aviation, Oil & Gas and Healthcare segments.

•	GE Pension Plan contributions of $0.9 billion in 2018 compared with $0.2 billion in 2017.

•	Lower taxes paid of $0.9 billion in 2018 compared with $1.3 billion in 2017.

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•	No business acquisitions in 2018, compared with business acquisitions of $2.6 billion in 2017, mainly driven by the acquisition of LM Wind for $1.6 billion (net of cash acquired) and ServiceMax for $0.9 billion (net of cash acquired).

•	Proceeds from business dispositions of $2.4 billion in 2018, primarily from the sale of our Industrial Solutions business for $2.2 billion (net of cash transferred), compared with $0.1 billion in 2017.

•	These decreases in cash used were partially offset by following increases:

•	Technology investments in our Aviation segment of $0.6 billion in 2018, compared with $0.3 billion in 2017.

•	Net cash paid for settlements of derivative hedges of $0.5 billion in 2018.

•

A net decrease in borrowings of $1.2 billion in 2018, mainly driven by net repayments of debt of $2.1 billion (including $0.7 billion at BHGE), partially offset by long-term loans from GE Capital to GE of $0.9 billion, compared with a net increase in borrowings of $11.6 billion in 2017, mainly driven by the issuance of long-term debt of $8.6 billion, primarily to fund business acquisitions, and long-term loans from GE Capital to GE of $4.1 billion, partially offset by the settlement of the remaining portion of a 2016 short-term loan from GE Capital to GE of $1.3 billion.

•	BHGE net stock repurchases and dividends to noncontrolling interests of $0.5 billion in 2018, compared with no such activity in 2017.

•	These increases in cash used were partially offset by the following decreases:

•	An insignificant amount of net repurchases of GE treasury shares in 2018, compared with net repurchases of $2.7 billion in 2017.

•	Common dividends paid to shareowners of $2.1 billion in 2018, compared with $4.2 billion in 2017.

•	Net increase in cash collateral paid to counterparties on derivative contracts of $2.1 billion.

•	Investment securities decreased $4.4 billion related to net maturities of $0.7 billion in 2018 compared to net maturities of $5.2 billion in 2017.

•	Net proceeds from the sales of our discontinued operations of an insignificant amount in 2018 compared to $0.8 billion in 2017.

•	A general reduction in funding related to discontinued operations.

•	These decreases in cash were partially offset by the following increases:

•	Higher collections of financing receivables of $2.6 billion in 2018.

•	Long-term loans from GE Capital to GE of $0.9 billion in 2018 compared to long-term loans from GE Capital to GE of $4.1 billion partially offset by the settlement of the remaining portion of a 2016 short-term loan from GE Capital to GE of $1.3 billion in 2017.

•	No GE Capital common dividends paid to GE in 2018 compared to $4.0 billion in 2017.

•	A net decrease in derivative cash settlements paid of $0.2 billion

•	These decreases in cash were partially offset by higher net repayments of borrowings of $16.6 billion in 2018 compared to $13.0 billion in 2017.

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•	GE Capital dividends to GE,

•	GE Capital working capital solutions to optimize GE cash management,

•	GE Capital enabled GE industrial orders, including related GE guarantees to GE Capital,

•	GE Capital financing of GE long-term receivables, and

•	Aircraft engines, power equipment, renewable energy equipment and healthcare equipment manufactured by GE that are installed on GE Capital investments, including leased equipment.

•	Expenses related to parent-subsidiary pension plans,

•	Buildings and equipment leased between GE and GE Capital, including sale-leaseback transactions,

•	Information technology (IT) and other services sold to GE Capital by GE,

•	Settlements of tax liabilities, and

•	Various investments, loans and allocations of GE corporate overhead costs.

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•	GE Industrial segment organic revenues

•	GE Industrial structural costs

•	GE pre-tax earnings from continuing operations, excluding GE Capital earnings (loss) from continuing operations and the corresponding effective tax rates

•	Adjusted earnings (loss)

•	Adjusted earnings (loss) per share (EPS)

•	Adjusted GE Industrial profit and profit margin (excluding certain items)

•	Adjusted Oil & Gas segment profit

•	GE Industrial Free Cash Flows (FCF) and Adjusted GE Industrial FCF

•	GE Industrial net debt

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(a)

Shares were repurchased through the GE Share Repurchase Program that we announced on April 10, 2015 (the Program). Under the Program, we are authorized to repurchase up to $50 billion of our common stock through 2018 and, as of June 30, 2018, we had repurchased a total of approximately $29.2 billion under the Program. The Program is flexible and shares will be acquired with a combination of borrowings and free cash flow from the public markets and other sources, including GE Stock Direct, a stock purchase plan that is available to the public.

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(a)	Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1.

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(a)	Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1.

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(a)	Includes restricted cash of $725 million and $668 million at June 30, 2018 and December 31, 2017, respectively.

(b)

Our consolidated assets at June 30, 2018 included total assets of $4,051 million of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs. These assets included current receivables and net financing receivables of $1,428 million within continuing operations and assets of discontinued operations of $275 million. Our consolidated liabilities at June 30, 2018 included liabilities of certain VIEs for which the VIE creditors do not have recourse to GE. These liabilities included non-recourse borrowings of consolidated securitization entities (CSEs) of $(624) million within continuing operations. See Note 18.

(c)	The sum of accumulated other comprehensive income (loss) (AOCI) attributable to the Company was $(13,432) million and $(14,404) million at June 30, 2018 and December 31, 2017, respectively.

(d)	Included AOCI attributable to noncontrolling interests of $(279) million and $(226) million at June 30, 2018 and December 31, 2017, respectively.

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(a)	Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis. See Note 1.

(b)	GE restricted cash was $394 million and $611 million at June 30, 2018 and December 31, 2017, respectively, and GE Capital restricted cash was $331 million and $57 million at June 30, 2018 and December 31, 2017, respectively.

(c)	In 2015, senior unsecured notes and commercial paper were assumed by GE upon its merger with GE Capital, resulting in an intercompany receivable and payable between GE and GE Capital. See Note 11.

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(a)	Represents the adding together of all affiliated companies except GE Capital, which is presented on a one-line basis.

(b)	Represents GE Capital earnings (loss) from continuing operations attributable to the Company, net of GE Capital common dividends paid to GE.

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•	Modifications - Under the new revenue standard, contract modifications will generally be accounted for as if we entered into a new contract, resulting in prospective recognition of changes to our estimates of contract billings and costs. That is, cumulative effect adjustments will generally no longer be recognized in the period that modifications occur.

•

Scope and term - The new revenue standard provides more prescriptive guidance on identifying the elements of long-term service type contracts that should be accounted for as separate performance obligations. Application of this guidance, which focuses on understanding the nature of the arrangement, including our customers' discretion in purchasing decisions, has resulted in changes to the scope of elements included in our accounting model for long-term service agreements. For example, significant equipment upgrades offered as part of our long-term service agreements will generally be accounted for as separate performance obligations under the new revenue standard.

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(a)

Included transactions in our industrial businesses that were made on an arms-length basis with GE Capital, including GE current receivables sold to GE Capital of $332 million and $366 million at June 30, 2018 and December 31, 2017, respectively. These intercompany balances included within our held for sale businesses are reported in the GE and GE Capital columns of our financial statements, but are eliminated in deriving our consolidated financial statements.

(b)	We adjusted the carrying value to fair value less cost to sell for certain held for sale businesses.

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(a)

GE Capital's total tax benefit (provision) for discontinued operations and disposals included current tax benefit (provision) of $132 million and $253 million for the three months ended June 30, 2018 and 2017, respectively, and $123 million and $(323) million for the six months ended June 30, 2018 and 2017, respectively, including current U.S. Federal tax benefit (provision) of $37 million and $68 million for the three months ended June 30, 2018 and 2017, respectively and $61 million and $(519) million for the six months ended June 30, 2018 and 2017, respectively. The deferred tax benefit (provision) was $(97) million and $(190) million for the three months ended June 30, 2018 and 2017, respectively and $(70) million and $370 million for the six months ended June 30, 2018 and 2017, respectively.

(b)

The sum of GE Industrial earnings (loss) from discontinued operations, net of taxes, and GE Capital earnings (loss) from discontinued operations, net of taxes, after adjusting for earnings (loss) attributable to noncontrolling interests related to discontinued operations, is reported within earnings (loss) from discontinued operations, net of taxes, in the GE Industrial column of the Consolidated Statement of Earnings (Loss).

(c)	Earnings (loss) from discontinued operations attributable to the Company, before income taxes, was $(156) million and $(215) million for the three months ended June 30, 2018 and 2017, respectively, and $(1,726) million and $(438) million for the six months ended June 30, 2018 and 2017, respectively.

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(a)	Included $928 million and $569 million of investment securities held by GE at June 30, 2018 and December 31, 2017, respectively, of which $524 million and $141 million are equity securities with readily determinable fair value.

(b)

These securities have readily determinable fair values and subsequent to the adoption of ASU 2016-01 on January 1, 2018, changes in fair value are recorded to earnings. Net unrealized gains (losses) recorded to earnings related to these securities were $293 million and $29 million for the three months ended and $276 million and $29 million for the six months ended June 30, 2018 and 2017, respectively.

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(a)

Included GE industrial customer receivables sold to a GE Capital affiliate and recorded on GE Capital’s balance sheet of $7,025 million and $10,370 million at June 30, 2018 and December 31, 2017, respectively. The consolidated total included a deferred purchase price receivable of $413 million and $388 million at June 30, 2018 and December 31, 2017, respectively, related to our Receivables Facility (described below).

(b)

In order to manage credit exposure, the Company sells additional current receivables to third parties outside the Receivables Facility, substantially all of which are serviced by the Company. The outstanding balance of these current receivables was $2,694 million and $2,541 million at June 30, 2018 and December 31, 2017, respectively. Of these balances, $1,641 million and $1,621 million was sold by GE to GE Capital prior to the sale to third parties at June 30, 2018 and December 31, 2017, respectively. At June 30, 2018 and December 31, 2017, our maximum exposure to loss under the limited recourse arrangements is $50 million and $90 million, respectively.

(c)	GE current receivables balances at June 30, 2018 and December 31, 2017, before allowance for losses, included $10,518 million and $10,452 million, respectively, from sales of goods and services to customers. The remainder of the balances primarily relates to supplier advances, revenue sharing programs and other non-income based tax receivables.

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(a)	Includes an increase of approximately $980 million primarily related to fair value adjustments to identifiable assets and liabilities (excluding goodwill) partially offset by a tax asset of approximately $553 million associated with the recognition of foreign tax credits.

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(a)	Substantial majority of Lighting segment classified as held for sale in the fourth quarter of 2017.

(a)	Indefinite-lived intangible assets principally comprise trademarks/trade names and in-process research and development.

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(a)	Balance includes payments made to our customers, primarily within our Aviation business.

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(a)	Revenues classification consistent with our MD&A defined Services revenue

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(a)	Includes $2,361 million and $4,478 million for the three months ended June 30, 2018 and 2017, respectively, and $2,389 million and $5,004 million for the six months ended June 30, 2018 and 2017, respectively, of revenues at GE Capital outside of the scope of ASC 606.

•	Equipment - total remaining performance obligation of $50,982 million of which 53%, 71% and 93% is expected to be satisfied within 1, 2 and 5 years, respectively, and the remaining thereafter.

•	Service - total remaining performance obligation of $198,592 million of which 17%, 54%, 77% and 88% is expected to be recognized within 1, 5, 10 and 15 years, respectively, and the remaining thereafter.

•	Contract modifications could affect both the timing to complete as well as the amount to be received as we fulfill the related remaining performance obligations.

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(a)	Primarily includes our Healthcare segment

(b)	Long-term product service agreement balances are presented net of related billings in excess of revenues of $5,043 million and $5,498 million at June 30, 2018 and December 31, 2017, respectively.

(c)	Included in this balance are amounts due from customers for the sale of service upgrades, which we collect through higher fixed or usage-based fees from servicing the equipment under long-term product service agreements. Amounts due from these financing arrangements totaled $799 million and $748 million, as of June 30, 2018 and December 31, 2017, respectively.

(d)	Represents cost deferral for shipped goods (such as components for wind turbine assembly within our Renewable Energy segment) and labor and overhead costs on time and material service contracts (primarily originating in Power and Aviation) and other costs for which the criteria for revenue recognition has not yet been met.

(e)	Includes costs incurred prior to production (e.g., requisition engineering) for equipment production contracts, primarily within our Aviation segment, which are allocated ratably to each unit produced.

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(a)	Included $260 million and $988 million of short- and long-term borrowings, respectively, at June 30, 2018 and $348 million and $1,118 million of short- and long-term borrowings, respectively, at December 31, 2017, of funding secured by aircraft and other collateral. Of this, $320 million and $458 million is non-recourse to GE Capital at June 30, 2018 and December 31, 2017, respectively.

(b)	Included $6,191 million and $6,206 million of BHGE senior notes at June 30, 2018 and December 31, 2017, respectively. Total BHGE borrowings were $6,446 million and $7,225 million at June 30, 2018 and December 31, 2017, respectively.

(c)

Included a reduction of $8,190 million and $7,271 million for long-term intercompany loans from GE Capital to GE at June 30, 2018 and December 31, 2017, respectively, which bear the right of offset against amounts owed under the assumed debt agreement. Excluding intercompany loans, total long-term assumed debt was $34,750 million and $38,804 million at June 30, 2018 and December 31, 2017, respectively. The $8,190 million of intercompany loans collectively have a weighted average interest rate of 3.6% and term of approximately 15 years, and can be prepaid at any time, in whole or in part, by GE without premium or penalty.

(d)	Included $361 million and $621 million of current portion of long-term borrowings at June 30, 2018 and December 31, 2017, respectively. See Note 17 for further information.

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(a)	To the extent that unrealized gains on debt securities supporting our insurance contracts would result in a premium deficiency should those gains be realized, an increase in future policy benefit reserves is recorded, with an offsetting amount recorded in Other comprehensive income, net of taxes.

(b)	Includes $3,754 million and $3,590 million related to long-term care insurance contracts and $359 million and $364 million related to short-duration contracts, net of eliminations, at June 30, 2018 and December 31, 2017, respectively.

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(a)	Curtailment loss resulting from our intent to sell the Industrial Solutions business within our Power segment.

(a)	Settlement gain resulting from the sale of the Industrial Solutions business within our Power segment.

(a)	Curtailment loss resulting from our intent to sell the Industrial Solutions business within our Power segment.

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(a)	Some portion of such reduction may be reported as discontinued operations.

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(a)

Included adjustments of $534 million and $(90) million for the three months ended June 30, 2018 and 2017 and $1,472 million and $(189) million for the six months ended June 30, 2018 and 2017, respectively, to investment contracts, insurance liabilities and annuity benefits in our run-off insurance operations to reflect the effects that would have been recognized had the related unrealized investment securities holding gains been realized. See Note 12 for further information.

(b)

Recorded in "Total revenues" and "Other income" and income taxes in "Benefit (provision) for income taxes" in our consolidated Statement of Earnings (Loss). Currency translation gains and losses on dispositions included zero and $(2) million for the three months ended June 30, 2018 and 2017, and zero and $510 million for the six months ended June 30, 2018 and 2017, respectively, in earnings (loss) from discontinued operations, net of taxes.

(c)	Cash flow hedges primarily includes impact of foreign exchange contracts and gains and losses on interest rate derivatives, primarily recorded in GE Capital revenue from services, interest and other financial charges and other costs and expenses. See Note 17 for further information.

(d)	Primarily includes amortization of actuarial gains and losses, amortization of prior service cost and curtailment gain and loss. These components are included in the computation of net periodic pension cost. See Note 13 for further information.

(e)	January 1, 2018 amount has been adjusted to reflect retrospective adoption of ASC 606 ($8,061 million) and preferable accounting change from LIFO to FIFO ($377 million).

(f)	Amount of redemption value adjustment on redeemable noncontrolling interest shown net of deferred taxes.

(g)	On January 1, 2018, we adopted several new accounting standards on a modified retrospective basis. Cumulative impact of these changes was recorded in the opening retained earnings and it increased our retained earnings by $500 million, primarily due to an increase of $464 million related to ASU 2016-16. See Note 1 for further information.

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(a)	Includes impact of AOCI, acquisitions, dispositions and BHGE stock repurchases.

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(a)	Included $3,019 million and $2,894 million related to the Alstom joint ventures at June 30, 2018 and 2017, respectively.

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(a)	Our unvested restricted stock unit awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities. For the three and six months ended June 30, 2018 and 2017, pursuant to the two-class method, as a result of excess dividends in respect to the current period earnings, losses were not allocated to the participating securities.

(b)	Included an insignificant amount of dividend equivalents in each of the periods presented.

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(a)	See Note 11.

(b)	Included $130 million and $217 million of accrued interest in estimated fair value at June 30, 2018 and December 31, 2017, respectively.

(c)	Included $650 million and $696 million of accrued interest in estimated fair value at June 30, 2018 and December 31, 2017, respectively.

(d)	Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at June 30, 2018 and December 31, 2017 would have been reduced by $1,255 million and $1,754 million, respectively.

(e)	Included $485 million and $731 million of accrued interest in estimated fair value at June 30, 2018 and December 31, 2017, respectively.

(f)	Excluded $29,309 million and $39,844 million of net intercompany payable to GE at June 30, 2018 and December 31, 2017, respectively.

(a)	Excluded investment commitments of $731 million and $677 million at June 30, 2018 and December 31, 2017, respectively.

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(a)	The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts include fair value adjustments related to our own and counterparty non-performance risk. At June 30, 2018 and December 31, 2017, the cumulative adjustment for non-performance risk was $(1) million and $(1) million, respectively.

(b)	Excluded excess cash collateral received and posted of $218 million and $425 million at June 30, 2018, respectively, and $10 million and $255 million at December 31, 2017, respectively. Excess cash collateral posted includes initial margin for cleared trades.

(c)	Excluded excess securities collateral received of $7 million and $16 million at June 30, 2018 and December 31, 2017, respectively.

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(a)	For cash flow and fair value hedges, the effect on earnings is primarily related to ineffectiveness. For net investment hedges, the effect on earnings is related to ineffectiveness and spot-forward differences.

(b)

Both non-derivatives and derivatives hedging instruments are included. The carrying value of non-derivative instruments designated as net investment hedges was $(20,750) million and $(24,232) million at June 30, 2018 and 2017, respectively. Total pre-tax reclassifications from CTA to gain (loss) was zero and $59 million at June 30, 2018 and 2017, respectively. Total pre-tax reclassifications from CTA to gain (loss) included zero and $59 million recorded in discontinued operations at June 30, 2018 and 2017, respectively.

(c)	Net effect is substantially offset by the change in fair value of the hedged item that will affect earnings in future periods.

(a)	Gain (loss) is recorded in "GE Capital revenues from services", "Interest and other financial charges", "Sales of goods", "Cost of goods sold" and "Other costs and expenses" in our Statement of Earnings when reclassified.

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(a)	Two funding vehicles established to purchase customer notes receivable from GE, one of which is partially funded by third-party debt.

(b)

In January 2018, ownership of the equity shares of Electric Insurance Company ("EIC") were distributed to GE Capital by a bankruptcy trustee. We have previously reported EIC as a VIE because we received a 100% beneficial interest in the assets, liabilities and operations of EIC, related to an interim distribution in 2001. As EIC is now a consolidated voting interest entity we removed EIC from our VIE disclosure. In 2017, $1,470 million of assets and $959 million of liabilities were included related to EIC.

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(a)	Included a pre-tax gain on sales of businesses reclassified to Proceeds from principal business dispositions within Cash flows from investing activities of $(305) million for Industrial Solutions in the six months ended June 30, 2018. See Note 2.

(b)	Reflected the effects of current tax expense of $484 million and $810 million and net cash paid during the year for income taxes of $(873) million and $(1,292) million for the six months ended June 30, 2018 and 2017, respectively. Cash flows effects of deferred tax provisions (benefits) are shown separately within Cash flows from operating activities in the Statement of Cash Flows.

(c)	Reflected the effects of pension costs of $2,094 million and $1,869 million and employer contributions of $(1,042) million and $(327) million for the six months ended June 30, 2018 and 2017, respectively. See Note 13.

(d)	Reflected the effects of other postretirement plans costs (income) of $(95) million and $197 million and employer contributions of $(574) million and $(476) million for the six months ended June 30, 2018 and 2017, respectively. See Note 13.

(e)	Reflected the effects of restructuring and other charges of $1,225 million and $1,603 million and restructuring and other cash expenditures of $(822) million and $(1,019) million for the six months ended June 30, 2018 and 2017, respectively. Excludes non-cash adjustments reflected as Depreciation and amortization of property, plant and equipment in the Statement of Cash Flows.

(f)	Included other adjustments to net income, such as cash and non-cash gains and losses from other investments and sales of intangible assets, write-downs of assets, the impacts of acquisition accounting and changes in other assets and other liabilities classified as operating activities, such as the timing of payments of employee-related liabilities, contract-related costs and customer allowances.

(g)	Excluded net derivative settlements of $(512) million in the six months ended June 30, 2017. The classification of the settlement of derivative instruments was changed from operating cash flows to investing cash flows in the second half of 2017.

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•	GE Capital dividends to GE,

•	GE Capital working capital solutions to optimize GE cash management,

•	GE Capital enabled GE industrial orders, including related GE guarantees to GE Capital,

•	GE Capital financing of GE long-term receivables, and

•	Aircraft engines, power equipment, renewable energy equipment and healthcare equipment manufactured by GE that are installed on GE Capital investments, including leased equipment.

•	Expenses related to parent-subsidiary pension plans,

•	Buildings and equipment leased between GE and GE Capital, including sale-leaseback transactions,

•	Information technology (IT) and other services sold to GE Capital by GE

•	Settlements of tax liabilities, and

•	Various investments, loans and allocations of GE corporate overhead costs.

(a)	Includes eliminations of other cash flows activities, including financing of long-term receivables of $737 million and $(347) million in the six months ended June 30, 2018 and 2017 respectively, and various investments, loans and allocations of GE corporate overhead costs.

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•	General Electric Company (the Parent Company Guarantor) - prepared with investments in subsidiaries accounted for under the equity method of accounting and excluding any inter-segment eliminations;

•	GE Capital International Funding Company Unlimited Company (the Subsidiary Issuer) – finance subsidiary for debt;

•	GE Capital International Holdings Limited (GECIHL) (the Subsidiary Guarantor) - prepared with investments in non-guarantor subsidiaries accounted for under the equity method of accounting;

•	Non-Guarantor Subsidiaries - prepared on an aggregated basis excluding any elimination or consolidation adjustments and includes predominantly all non-cash adjustments for cash flows;

•	Consolidating Adjustments - adjusting entries necessary to consolidate the Parent Company Guarantor with the Subsidiary Issuer, the Subsidiary Guarantor and Non-Guarantor Subsidiaries and in the comparative periods, this category includes the impact of new accounting policies adopted as described in Note 1 ; and

•	Consolidated - prepared on a consolidated basis.

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(a)	Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $8,819 million and net assets of discontinued operations of $3,329 million.

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(a)	Included within the subsidiaries of the Subsidiary Guarantor are cash and cash equivalent balances of $15,225 million and net assets of discontinued operations of $4,318 million.

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(a)	There have been no significant changes to our market risk since December 31, 2017. For a discussion of our exposure to market risk, refer to our Annual Report on Form 10-K for the year ended December 31, 2017.

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