We supplement our GAAP net earnings and earnings per share (EPS) reporting by also reporting operating earnings and operating EPS (non-GAAP measures). Operating earnings and operating EPS include service costs and plan amendment amortization for our principal pension plans as these costs represent expenses associated with employee benefits earned. Operating earnings and operating EPS exclude non-operating pension cost/income such as interest costs, expected return on plan assets and noncash amortization of actuarial gains and losses. We believe that this reporting provides better transparency to the employee benefit costs of our principal pension plans and Company operating results. OVERVIEW OF OUR EARNINGS 2011–2013 Earnings from continuing operations attributable to the Company increased 3% to $14.7 billion in 2013 and 13% to $14.2 billion in 2012, reflecting the relative stabilization of overall economic conditions during the last two years. Operating earnings (non-GAAP measure) which exclude non-operating pension costs increased 8% to $16.1 billion in 2013 compared with a 20% increase to $14.9 billion in 2012. Earnings per share from continuing operations increased 12% to $1.39 in 2013 compared with an 8% increase to $1.24 in 2012. Operating EPS (non-GAAP measure) increased 16% to $1.52 in 2013 compared with a 16% increase to $1.31 in 2012. Operating EPS excluding the effects of our 2012 preferred stock redemption (non-GAAP measure) increased 10% to $1.52 in 2013 compared with $1.38 in 2012. We believe that we are seeing continued signs of stabilization in much of the global economy, including in financial services, as GECC earnings from continuing operations attributable to the Company increased 12% in 2013 and 111% in 2012. Net earnings attributable to the Company decreased 4% in 2013 reflecting an increase of losses from discontinued operations partially offset by a 3% increase
in earnings from continuing operations. Net earnings attributable to the Company increased 22% in 2012, as losses from discontinued operations in 2012 decreased and earnings from continuing operations increased 13%. We begin 2013 with a record backlog of $210 billion, continue to invest in market-leading technology and services and expect to continue our trend of revenue and earnings growth. power & water (18% and 27% of consolidated three-year revenues and total segment profit, respectively) revenues increased 10% in 2013 primarily as a result of higher volume mainly driven by an increase in equipment sales at the Wind business after increasing 4% in 2012 primarily as a result of a higher volume. Segment profit increased 8% in 2013 primarily driven by higher volume. Segment profit decreased 13% in 2012 primarily due to lower productivity and lower prices in the wind turbines business. oil & gas (9% and 8% of consolidated threeyear revenues and total segment profit, respectively) revenues increased 12% in 2013 primarily as a result of higher volume driven by acquisitions and higher sales of both equipment and services, after increasing 44% in 2012 as a result of acquisitions and higher volume. Segment profit increased 16% in 2013 primarily on higher volume and increased productivity reflecting increased equipment margins. Segment profit increased 18% in 2012 primarily driven by higher volume. energy management (4% and 1% of consolidated three-year revenues and total segment profit, respectively) revenues increased 15% in 2013 primarily as a result of acquisitions after increasing 24% in 2012 driven by acquisitions and higher volume. Segment profit increased 68% in 2013 primarily driven by its higher prices and increased other income. Segment profit decreased 50% in 2012 primarily driven by the effects of inflation and decreased other miscellaneous income.
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