Summary
This 8-K filing from General Electric (GE) on December 16, 2015, primarily concerns the finalization and reporting of significant divestitures within its GE Capital division. Specifically, GE has completed the split-off of Synchrony Financial, exchanging its remaining shares for GE's own stock and recognizing a pro forma gain of approximately $3.7 billion as of September 30, 2015. Furthermore, GE has met the criteria to classify the remainder of its GE Capital Consumer business as held for sale. These operations, including Synchrony's historical results and the gain from the split-off, will be reported as discontinued operations in the fourth quarter of 2015. The filing also includes unaudited pro forma financial information reflecting these changes. Investors should note that these are significant steps in GE's strategic shift away from its financial services segment, impacting its financial statements and future reporting structure.
Key Highlights
- 1GE completed the split-off of Synchrony Financial, exchanging its shares for GE's own common stock.
- 2A pro forma gain of approximately $3.7 billion related to the Synchrony split-off was recognized as of September 30, 2015.
- 3The entirety of GE Capital's Consumer business, including Synchrony, is now classified as held for sale.
- 4Both Synchrony's historical results and the gain from its split-off will be reported as discontinued operations for Q4 2015.
- 5GE Capital's remaining Consumer business will also be reported as discontinued operations starting in Q4 2015.
- 6Unaudited pro forma financial information reflecting these divestitures is filed as an exhibit.
- 7This filing underscores GE's strategic move to reduce the size of its financial services businesses.