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Non-GAAP Disclosures General Electric (GE) disclosed the following non-GAAP reconciliation for its Industrial segment from its 2018 Form 10-K. $ millions GE Industrial earnings (loss) Less: Nonoperating pension benefit costs (net of tax) Less: Gains and impairments for disposed or held for sale businesses (net of tax) Less: Restructuring and other net of tax) Less: Goodwill impairments (net of tax) Less: GE Industrial U.S. tax reform enactment adjustment Adjusted GE Industrial earnings (loss) (Non-GAAP) 2018 2017 2016 $(18,117) $(1,841) $7,962 (1,922) (1,550) (1,344) 857 864 2,089 (2.948) (2.778) (2.483) (19,686) (1,017) (33) (4,905) $5,615 $7,545 $9,700 Required a. Explain how the non-GAAP items (in total) affected adjusted earnings each year. ► Net effect of non-GAAP adjustments in 2016: Increase adjusted net earnings Net effect of non-GAAP adjustments in 2017: Increase adjusted net earnings Net effect of non-GAAP adjustments in 2018: Increase adjusted net earnings b. Calculate net non-GAAP items as a percentage of net earnings for each year presented. Note: Round your answers to the nearest whole percentage point. Note: Do not use negative signs with your answers. Non-GAAP adjustments/Net earnings 115 % x 2018 2017 2016 305 96 X 64 96 X C. Calculate the year-over-year change in % terms) in reported net earnings for 2017 and 2018. Calculate the year-over-year change (in % terms) in the non-GAAP net income. Note: Round your answers to the nearest whole percentage point. Note: Use a negative sign to indicate lower performance over the previous year. Net earnings Non-GAAP income 2018 Year-over Year % Change 2017 Year-over Year % Change 096 x 096 x 096 X 096 X

Answer 1

Non-GAAP Disclousure Related ratios:

b.Total of Net Non-GAAP Adjustment Item as percentage of Net Earnings:

b.	Non-GAAP Adjustment/Net earnings
2018	115%
2017	305%
2016	64%

Calculation:

$ millions	2018	2017	2016
GE Industrial earnings (loss)	$(18,117)	$(1,841)	$7,962
Less: Nonoperating pension benifits costs(net of tax)	(1,922)	(1,550)	(1,344)
Less:Gaines and impariments for disposed or held for sale businesses (net of tax)	857	864	2,483
Less:Restructuring and others (net of tax)	(2,948)	(2,778)	(2,483)
Less:Goodwill impairments (net of tax)	(19,686)	(1,017)	-
Less:GE Industrial U.S. tax reform enactment adjustment	(33)	(4,905)	-
Adjusted GE Industrial earning(loss) (Non-GAAP)	$5,615	$7,545	$9,700

As per instruction, Nagitive sign is not used in answer for percentage of 2016.

C.Year over year changes in percentae

	2018 YoY % change	2017 YoY % Change
Net earnings	-895%	-123%
Non-GAAP income	-155%	-444%

Caluculation:

Year Over Year Change	2018	2017	2016
Net earnings	$(18,117)	$(1,841)	$7,962
Year over year change.(Current year Less previous)(A)	$(16,481)	$(9,894)	-
Y-o-Y in %(A/Previous year earnings)	-895%	-123%	-
Non-GAAP net income(From Explanation of b.)	$(23,969)	$(9,398)	$(1,729)
Year over year change (Current year Less Previous year) (A)	$(14,571)	$(7,669)	-
Y-o-Y in %(A/Previous Year)	-155%	-444%