Summary
This 8-K filing from General Electric (GE) on July 6, 2015, primarily addresses material impairments and updates on GE Capital's exit plan. GE is accelerating the divestiture of certain businesses within GE Capital's Commercial Lending and Leasing segment, classifying them as held for sale as of June 29, 2015. This acceleration is ahead of the previously announced 24-month timeline for exiting most of GE Capital's financial services business. Consequently, GE anticipates recognizing approximately $4.3 billion in after-tax charges related to the loss on disposal for these specific businesses in the second quarter of 2015. These charges are considered part of the previously disclosed GE Capital Exit Plan and are not expected to result in future net cash expenditures. Investors should note that these impairments are within the original $23 billion after-tax charge estimate provided in April 2015 and do not represent new or unexpected financial impacts.
Key Highlights
- 1GE is accelerating the sale of certain GE Capital commercial lending and leasing assets.
- 2These assets were classified as 'held for sale' on June 29, 2015.
- 3An estimated $4.3 billion in after-tax charges are expected for the second quarter of 2015 due to these disposals.
- 4These charges are related to the loss on disposal of the classified businesses.
- 5The charges are being reported in discontinued operations.
- 6These charges are within the framework of the previously announced GE Capital Exit Plan.
- 7No future net cash expenditures are expected from these impairment charges.