Question

Analyzing and Interpreting Restructuring Costs and Effects General Electric (GE) reports the following footnote disclosure (excerpted) in its 2018 10-K relating to its restructuring program. Restructuring actions are an essential component of our cost improvement efforts to both existing operations and those recently acquired. Restructuring and other charges relate primarily to workforce reductions, facility exit costs associated with the consolidation of sales, service and manufacturing facilities, the integration of recent acquisitions, and other asset write downs. We continue to closely monitor the economic environment and may undertake further restructuring actions to more closely align our cost structure with earnings and cost reduction goals. Workforce reductions 2018 2017 2016 $0.9 $1.2 $1.3 1.8 1.9 1.3 0.8 0.8 0.6 Plant closures & associated costs and other asset write-downs Acquisition/disposition net charges Other 0.1 0.2 0.3 Total $3.6 $4.1 $3.5 For 2018, restructuring and other charges were $3.6 billion of which approximately $1.4 billion was reported in cost of products/services and $2.1 billion was reported in selling, general and administrative expenses (SG&A). These activities were primarily at Power, Corporate and Oil & Gas. Cash expenditures for restructuring and other charges were approximately $2.0 billion for the twelve months ended December 31, 2018.

Answer 1

Balance Sheet (in $ millions)
Trans	Cash Asset +	Noncash Assets=	Liabilities +	Contributed Capital +	Earned Capital
1	0	0	3.6	0	-3.6
2	-2	0	-2	0	0

Income Statement
Transaction	Revenue -	Expenses =	Net Income
1	0	3.6	-3.6
2	0	0	0

Answer 2

a) severance charges