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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 June 30, 2002

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 incorporation or organization) (I.R.S. Employer Identification No.)
   
3135 Easton Turnpike, Fairfield, CT
06828-0001
(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 9,949,471,000 shares with a par value of $0.06 per share outstanding at June 28, 2002.

General Electric Company

Part I. Financial Information   Page
      
    Item 1. Financial Statements    
             Statement of Earnings  
                     Second Quarter Ended June 30, 2002 3
                     Six Months Ended June 30, 2002 4
             Statement of Financial Position   5
             Statement of Cash Flows   6
             Summary of Operating Segments   7
             Notes to Financial Statements   8
    Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition   14
     
Part II. Other Information    
    Item 1. Legal Proceedings 37
    Item 4. Submission of Matters to a Vote of Security Holders   38
    Item 6. Exhibits and Reports on Form 8–K   39
    Signatures   40

Forward Looking Statements

This document includes certain "forward–looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors.

Part I. Financial Information

Item 1. Financial Statements

Condensed Statement of Earnings
General Electric Company and consolidated affiliates
Second quarter ended June 30 (Unaudited)
Consolidated
GE
GECS
(Dollars, except per-share amounts, in millions) 2002  2001  2002  2001  2002  2001 
Sales of goods    $ 14,678    $ 13,427    $ 13,822    $ 12,474    $ 899    $ 960 
Sales of services      5,583      5,053      5,637      5,114      –      – 
Earnings of GECS      –      –      1,327      1,477      –      – 
GECS revenues from services      12,867      13,341      –      –      12,953      13,439 
Other income      86      156      103      200      –      – 
   Total revenues      33,214      31,977      20,889      19,265      13,852      14,399 
Cost of goods sold      10,300      9,196      9,521      8,337      822      866 
Cost of services sold      3,565      3,513      3,619      3,574      –      – 
Interest and other financial charges      2,443      2,707      75      115      2,429      2,671 
Insurance losses and policyholder 
   and annuity benefits      3,689      3,712      –      –      3,689      3,712 
Provision for losses on financing receivables      785      496      –      –      785      496 
Other costs and expenses      6,735      6,756      2,201      2,062      4,576      4,757 
Minority interest in net earnings of                                      
   consolidated affiliates      90      101      50      59      40      42 
   Total costs and expenses      27,607      26,481      15,466      14,147      12,341      12,544 
Earnings before income taxes      5,607      5,496      5,423      5,118      1,511      1,855 
Provision for income taxes      (1,181)     (1,599)     (997)     (1,221)     (184)     (378)
 
   Net earnings    $ 4,426    $ 3,897    $ 4,426    $ 3,897    $ 1,327    $ 1,477 
 
Per-share amounts                                     
    Diluted earnings per share    $ 0.44    $ 0.39                         
    Basic earnings per share    $ 0.45    $ 0.39                         
  
Dividends declared per share    $ 0.18    $ 0.16                         
See notes to condensed consolidated financial statements. Consolidating information is shown for "GE" and "GECS." Transactions between GE and GECS have been eliminated from the "consolidated" columns.
Condensed Statement of Earnings
General Electric Company and consolidated affiliates
Six months ended June 30 (Unaudited)
Consolidated
GE
GECS
(Dollars, except per-share amounts, in millions) 2002  2001  2002  2001  2002  2001 
Sales of goods    $ 27,224    $ 25,861    $ 25,552    $ 23,840    $ 1,715    $ 2,028 
Sales of services      10,525      9,479      10,655      9,598      –      – 
Earnings of GECS before accounting changes      –      –      2,984      2,878      –      – 
GECS revenues from services      25,845      26,915      –      –      26,036      27,094 
Other income      141      215      189      309      –      – 
   Total revenues      63,735      62,470      39,380      36,625      27,751      29,122 
Cost of goods sold      19,204      17,784      17,683      15,964      1,564      1,827 
Cost of services sold      7,008      6,718      7,138      6,837      –      – 
Interest and other financial charges      4,817      5,783      232      370      4,717      5,569 
Insurance losses and policyholder and 
   annuity benefits      7,238      7,235      –      –      7,238      7,235 
Provision for losses on financing receivables      1,447      979      –      –      1,447      979 
Other costs and expenses      13,241      13,818      4,220      4,216      9,128      9,719 
Minority interest in net earnings of consolidated                                     
    affiliates       166      203      92      104      74      99 
   Total costs and expenses      53,121      52,520      29,365      27,491      24,168      25,428 
Earnings before income taxes and accounting changes      10,614      9,950      10,015      9,134      3,583      3,694 
Provision for income taxes      (2,670)     (3,036)     (2,071)     (2,220)     (599)     (816)
   Earnings before accounting changes      7,944      6,914      7,944      6,914      2,984      2,878 
Cumulative effect of accounting changes (notes 3 and 4)     (1,015)     (444)     (1,015)     (444)     (1,015)     (169)
   Net earnings    $ 6,929    $ 6,470    $ 6,929    $ 6,470    $ 1,969    $ 2,709 
Per-share amounts before accounting changes                                     
    Diluted earnings per share    $ 0.79    $ 0.69                         
    Basic earnings per share    $ 0.80    $ 0.70                         
  
Per-share amounts after accounting changes                                     
    Diluted earnings per share    $ 0.69    $ 0.64                         
    Basic earnings per share    $ 0.70    $ 0.65                         
  
Dividends declared per share    $ 0.36    $ 0.32                         
See notes to condensed consolidated financial statements. Consolidating information is shown for "GE" and "GECS." Transactions between GE and GECS have been eliminated from the "consolidated" columns.
Condensed Statement of Financial Position
General Electric Company and consolidated affiliates
Consolidated
GE
GECS
(Dollars in millions) 6/30/02   12/31/01  6/30/02   12/31/01  6/30/02   12/31/01 
Cash and equivalents    $ 10,211    $ 9,082    $ 1,688    $ 10,447    $ 8,580    $ 7,314 
Investment securities      107,157      101,017      565      879      106,592      100,138 
Current receivables      10,207      9,590      10,477      9,805      –      – 
Inventories      9,139      8,565      8,873      8,295      266      270 
Financing receivables – net      185,373      174,032      –      –      185,373      174,032 
Other GECS receivables      40,218      38,422      –      –      42,224      40,584 
Property, plant and equipment (including equipment                                     
   leased to others) – net      44,471      42,140      13,186      12,799      31,285      29,341 
Investment in GECS      –      –      29,643      28,590      –      – 
Intangible assets – net      43,718      35,124      21,423      14,367      22,295      20,757 
All other assets      90,394      77,051      27,291      24,551      64,010      53,048 
Total assets    $ 540,888    $ 495,023    $ 113,146    $ 109,733    $ 460,625    $ 425,484 
Short-term borrowings    $ 135,224    $ 153,076    $ 2,378    $ 1,722    $ 133,772    $ 160,844 
Accounts payable, principally trade accounts      17,510      18,158      6,323      6,680      13,541      13,705 
Progress collections and price adjustments accrued      9,132      11,751      9,132      11,751      –      – 
Other GE current liabilities      16,860      15,919      16,860      15,919      –      – 
Long-term borrowings     125,206      79,806      870      787      124,448      79,091 
Insurance liabilities, reserves and annuity benefits      128,974      114,223      –      –      128,974      114,223 
All other liabilities      33,740      32,921      16,674      16,089      16,914      16,647 
Deferred income taxes      10,194      9,130      1,202      1,013      8,992      8,117 
Total liabilities      476,840      434,984      53,439      53,961      426,641      392,627 
Minority interest in equity of consolidated