GENERAL ELECTRIC CO | 2013 | FY | 3


NOTE 7. PROPERTY, PLANT AND EQUIPMENT

 

 Depreciable      
 lives-new      
December 31 (Dollars in millions)(in years)  2013  2012
         
Original cost        
   GE        
   Land and improvements 8(a)$707 $612
   Buildings, structures and related equipment 8-40  8,910  8,361
   Machinery and equipment 4-20  25,323  24,090
   Leasehold costs and manufacturing plant under construction 1-10  3,309  2,815
     38,249  35,878
         
   GECC(b)        
   Land and improvements, buildings, structures and related equipment 1-35(a) 2,504  2,485
   Equipment leased to others        
      Aircraft 20  50,337  49,954
      Vehicles 1-20  14,656  15,952
      Railroad rolling stock 4-50  4,636  4,180
      Construction and manufacturing 1-30  2,916  3,055
      All other 7-27  3,518  3,427
     78,567  79,053
Eliminations    (347)  (363)
Total   $116,469 $114,568
         
Net carrying value        
   GE        
   Land and improvements   $671 $582
   Buildings, structures and related equipment    4,205  4,003
   Machinery and equipment    9,701  9,061
   Leasehold costs and manufacturing plant under construction    2,997  2,387
     17,574  16,033
   GECC(b)        
   Land and improvements, buildings, structures and related equipment    1,025  999
   Equipment leased to others        
      Aircraft(c)    34,938  36,231
      Vehicles    8,312  8,634
      Railroad rolling stock    3,129  2,744
      Construction and manufacturing    1,955  2,069
      All other    2,248  2,290
     51,607  52,967
Eliminations    (354)  (367)
Total   $68,827 $68,633
         
         
         

(a)       Depreciable lives exclude land.

(b)       Included $1,353 million and $1,466 million of original cost of assets leased to GE with accumulated amortization of $342 million and $451 million at December 31, 2013 and 2012, respectively.

(c)       The GECAS business of GE Capital recognized impairment losses of $732 million and $242 million in 2013 and 2012, respectively. These losses are recorded in the caption “Other costs and expenses” in the Statement of Earnings to reflect adjustments to fair value based on an evaluation of average current market values (obtained from third parties) of similar type and age aircraft, which are adjusted for the attributes of the specific aircraft under lease.

 

 

Consolidated depreciation and amortization related to property, plant and equipment was $9,762 million, $9,192 million and $8,986 million in 2013, 2012 and 2011, respectively. Amortization of GECC equipment leased to others was $6,696 million, $6,097 million and $6,063 million in 2013, 2012 and 2011, respectively.

 

Noncancellable future rentals due from customers for equipment on operating leases at December 31, 2013, are as follows:

 

(In millions)  
   
Due in  
   2014$7,168
   2015 5,925
   2016 4,838
   2017 3,823
   2018 3,070
   2019 and later 7,695
Total$32,519

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