Placido Garcia
Week #2 Exercise 15.2: External Financial Reports and Globalization.

a. The Headquarters of General Electric Company is in Fairfield, CT United States and operates in more than 170 countries around the world.
b. The proportion of total sales represented by foreign sales is about $80 billion of revenue outside the Unites States. The changes of sale over the past five-years have shown increases 3 out 5 years. The other 2 years were slightly below the company’s goal due to the price of oil dropping and exports issue.
c. They signed an agreement to sell their consumer finance business in Hungary (Budapest Bank) to Hungary’s government.
On June 2, 2014, we acquired Cameron’s Reciprocating Compression division for $0.6 billion. The division provides reciprocating compression equipment and aftermarket services for oil and gas production, gas processing, gas distribution and independent power industries
d. There are three categories GE uses hedging practices. FAIR VALUE HEDGES
GE use interest rate and currency exchange derivatives to hedge the fair value effects of interest rate and currency exchange rate changes on local and non-functional currency denominated fixed-rate debt. For relationships designated as fair value hedges, changes in fair value of the derivatives are recorded in earnings within interest and other financial charges, along with offsetting adjustments to the carrying amount of the hedged debt.
CASH FLOW HEDGES
GE use interest rate, currency exchange and commodity derivatives to reduce the variability of expected future cash flows associated with variable rate borrowings and commercial purchase and sale transactions, including commodities. For derivatives that are designated in a cash flow hedging relationship, the effective portion of the change in fair value of the derivative is reported as a component of AOCI and