FORM 10-K
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(Mark One)
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þ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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For the fiscal year ended December 31, 2012
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or
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¨ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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For the transition period from ___________to ___________
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Commission file number 1-6461
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General Electric Capital Corporation
(Exact name of registrant as specified in charter)
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Delaware
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13-1500700
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||||
(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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||||
901 Main Avenue, Norwalk, CT
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06851-1168
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203/840-6300
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|||
(Address of principal executive offices)
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(Zip Code)
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(Registrant’s Telephone No., including area code)
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|||
Securities Registered Pursuant to Section 12(b) of the Act:
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|||||
Title of each class
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Name of each exchange on which registered
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||||
4.875% Notes Due October 15, 2052
6.50% GE Capital InterNotes Due August 15, 2048
4.875% Notes Due January 29, 2053
7½% Guaranteed Subordinated Notes Due August 21, 2035
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New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
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Securities Registered Pursuant to Section 12(g) of the Act:
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(Title of class)
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NONE
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Large accelerated filer ¨
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Accelerated filer ¨
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Non-accelerated filer þ
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Smaller reporting company ¨
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Part I
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Page
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||
Item 1.
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Business
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3
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Item 1A.
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Risk Factors
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8
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Item 1B.
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Unresolved Staff Comments
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13
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Item 2.
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Properties
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13
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Item 3.
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Legal Proceedings
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13
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Item 4.
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Mine Safety Disclosures
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14
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Part II
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|||
Item 5.
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Market for Registrant’s Common Equity, Related Stockholder Matters and
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||
Issuer Purchases of Equity Securities
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15
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Item 6.
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Selected Financial Data
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15
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Item 7.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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15
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Item 7A.
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Quantitative and Qualitative Disclosures About Market Risk
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53
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Item 8.
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Financial Statements and Supplementary Data
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54
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Item 9.
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Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
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125
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Item 9A.
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Controls and Procedures
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126
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Item 9B.
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Other Information
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126
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Part III
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|||
Item 10.
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Directors, Executive Officers and Corporate Governance
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126
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Item 11.
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Executive Compensation
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126
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Item 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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126
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Item 13.
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Certain Relationships and Related Transactions, and Director Independence
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126
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Item 14.
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Principal Accounting Fees and Services
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126
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Part IV
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|||
Item 15.
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Exhibits and Financial Statement Schedules
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127
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Signatures
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135
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||
(Dollars in millions)
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2012
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2011
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2010
|
2009
|
2008
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||||||||||
Revenues
|
$
|
46,039
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$
|
49,068
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$
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49,856
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$
|
51,776
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$
|
68,541
|
|||||
Earnings from continuing operations
|
|||||||||||||||
attributable to GECC
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7,401
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6,584
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3,120
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1,253
|
7,470
|
||||||||||
Earnings (loss) from discontinued
|
|||||||||||||||
operations, net of taxes attributable to GECC
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(1,186)
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(74)
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(965)
|
162
|
(415)
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||||||||||
Net earnings attributable to GECC
|
6,215
|
6,510
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2,155
|
1,415
|
7,055
|
||||||||||
Net earnings attributable to GECC common shareowner
|
6,092
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6,510
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2,155
|
1,415
|
7,055
|
||||||||||
Shareowners' equity
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81,890
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77,110
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68,984
|
70,833
|
53,279
|
||||||||||
Short-term borrowings
|
95,940
|
136,333
|
118,797
|
130,754
|
159,904
|
||||||||||
Non-recourse borrowings of consolidated
|
|||||||||||||||
securitization entities
|
30,123
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29,258
|
30,018
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3,622
|
4,464
|
||||||||||
Bank deposits
|
46,461
|
43,115
|
37,298
|
33,519
|
36,854
|
||||||||||
Long-term borrowings
|
224,776
|
234,391
|
284,407
|
325,429
|
311,523
|
||||||||||
Return on average shareowners' equity(a)
|
9.06
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%
|
9.57
|
%
|
5.72
|
%
|
2.66
|
%
|
15.74
|
%
|
|||||
Ratio of earnings to fixed charges
|
1.62
|
1.51
|
1.12
|
0.82
|
1.23
|
||||||||||
Ratio of debt to equity at GECC
|
4.85:1
|
(b)
|
5.75:1
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(b)
|
6.82:1
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(b)
|
6.96:1
|
9.62:1
|
|||||||
Financing receivables - net
|
268,951
|
288,847
|
311,606
|
316,358
|
352,627
|
||||||||||
Total assets
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$
|
539,223
|
$
|
584,536
|
$
|
605,255
|
$
|
650,372
|
$
|
661,009
|
|||||
(a)
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Represents earnings from continuing operations before accounting changes divided by average total shareowners’ equity, excluding effects of discontinued operations (on an annual basis, calculated using a five-point average). Average total shareowners’ equity, excluding effects of discontinued operations, as of the end of each of the years in the five-year period ended December 31, 2012, is described in the Supplemental Information section in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Form 10-K Report.
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(b)
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Ratios of 3.66:1, 4.23:1 and 5.25:1 for 2012, 2011 and 2010, respectively, net of cash and equivalents and with classification of hybrid debt as equity.
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·
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The Risk Committee of the GE Board (GE Risk Committee) oversees GE’s risk management of key risks, including strategic, operational (including product risk), financial (including credit, liquidity and exposure to broad market risk) and reputational risks, and the guidelines, policies and processes for monitoring and mitigating such risks. The GE Risk Committee also oversees risks related to GE Capital and jointly meets with the GECC Board of Directors (GECC Board) at least four times a year.
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·
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The Audit Committee oversees GE’s and GE Capital’s policies and processes relating to the financial statements, the financial reporting process, compliance and auditing. The GE Audit Committee monitors ongoing compliance issues and matters, and also semi-annually conducts an assessment of compliance issues and programs. The Audit Committee jointly meets with the GECC Board once a year.
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·
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The Public Responsibilities Committee oversees risk management related to GE’s public policy initiatives, the environment and similar matters, and monitors GE’s environmental, health and safety compliance.
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·
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The Management Development and Compensation Committee oversees the risk management associated with management resources, structure, succession planning, management development and selection processes, and includes a review of incentive compensation arrangements to confirm that incentive pay does not encourage unnecessary risk taking and to review and discuss, at least annually, the relationship between risk management policies and practices, corporate strategy and senior executive compensation.
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·
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The Nominating and Corporate Governance Committee oversees risk related to the company’s governance structure and processes and risks arising from related-person transactions.
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·
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Strategic. Strategic risk relates to the company’s future business plans and strategies, including the risks associated with the markets and industries in which we operate, demand for our products and services, competitive threats, technology and product innovation, mergers and acquisitions and public policy.
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·
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Operational. Operational risk relates to risks (systems, processes, people and external events) that affect the operation of our businesses. It includes product life cycle and execution, product safety and performance, information management and data protection and security, business disruption, human resources and reputation.
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·
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Financial. Financial risk relates to our ability to meet financial obligations and mitigate credit risk, liquidity risk and exposure to broad market risks, including volatility in foreign currency exchange rates and interest rates and commodity prices. Liquidity risk is the risk of being unable to accommodate liability maturities, fund asset growth and meet contractual obligations through access to funding at reasonable market rates, and credit risk is the risk of financial loss arising from a customer or counterparty failure to meet its contractual obligations. We face credit risk in our industrial businesses, as well as in our GE Capital investing, lending and leasing activities and derivative financial instruments activities.
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·
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Legal and Compliance. Legal and compliance risk relates to risks arising from the government and regulatory environment and action, compliance with integrity policies and procedures, including those relating to financial reporting, environmental health and safety, and intellectual property risks. Government and regulatory risk includes the risk that the government or regulatory actions will impose additional cost on us or cause us to have to change our business models or practices.
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(In millions)
|
2012
|
2011
|
2010
|
|||||
Revenues
|
||||||||
CLL
|
$
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16,857
|
$
|
18,178
|
$
|
18,447
|
||
Consumer
|
15,579
|
16,767
|
17,180
|
|||||
Real Estate
|
3,654
|
3,712
|
3,744
|
|||||
Energy Financial Services
|
1,508
|
1,223
|
1,957
|
|||||
GECAS
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5,294
|
5,262
|
5,127
|
|||||
Total segment revenues
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42,892
|
45,142
|
46,455
|
|||||
GECC corporate items and eliminations
|
3,147
|
3,926
|
3,401
|
|||||
Total revenues in GECC
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$
|
46,039
|
$
|
49,068
|
$
|
49,856
|
||
Segment profit (loss)
|
||||||||
CLL
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$
|
2,423
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$
|
2,720
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$
|
1,554
|
||
Consumer
|
3,240
|
3,703
|
2,619
|
|||||
Real Estate
|
803
|
(928)
|
(1,741)
|
|||||
Energy Financial Services
|
432
|
440
|
367
|
|||||
GECAS
|
1,220
|
1,150
|
1,195
|
|||||
Total segment profit
|
8,118
|
7,085
|
3,994
|
|||||
GECC corporate items and eliminations(a)(b)
|
(717)
|
(501)
|
(874)
|
|||||
Earnings from continuing operations attributable to GECC
|
7,401
|
6,584
|
3,120
|
|||||
Earnings (loss) from discontinued operations, net of taxes,
|
||||||||
attributable to GECC
|
(1,186)
|
(74)
|
(965)
|
|||||
Total net earnings attributable to GECC
|
$
|
6,215
|
$
|
6,510
|
$
|
2,155
|
||
(a)
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Included restructuring and other charges for 2012, 2011 and 2010 of $0.1 billion, $0.1 billion and $0.2 billion, respectively, primarily related to CLL business exits.
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(b)
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Included $0.2 billion of net losses during each of the years 2012, 2011 and 2010, related to our treasury operations.
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(In millions)
|
2012
|
2011
|
2010
|
|||||
Revenues
|
$
|
16,857
|
$
|
18,178
|
$
|
18,447
|
||
Segment profit
|
$
|
2,423
|
$
|
2,720
|
$
|
1,554
|
||
December 31 (In millions)
|
2012
|
2011
|
||||||
Total assets
|
$
|
182,432
|
$
|
193,869
|
||||
(In millions)
|
2012
|
2011
|
2010
|
|||||
Revenues
|
||||||||
Americas
|
$
|
10,666
|
$
|
10,621
|
$
|
10,556
|
||
Europe
|
3,278
|
3,811
|
4,140
|
|||||
Asia
|
2,095
|
2,281
|
2,202
|
|||||
Other
|
818
|
1,465
|
1,549
|
|||||
Segment profit (loss)
|
||||||||
Americas
|
$
|
2,069
|
$
|
2,118
|
$
|
1,262
|
||
Europe
|
238
|
402
|
393
|
|||||
Asia
|
170
|
234
|
246
|
|||||
Other
|
(54)
|
(34)
|
(347)
|
|||||
December 31 (In millions)
|
2012
|
2011
|
||||||
Total assets
|
||||||||
Americas
|
$
|
108,895
|
$
|
116,034
|
||||
Europe
|
47,995
|
46,590
|
||||||
Asia
|
16,831
|
17,807
|
||||||
Other
|
8,711
|
13,438
|
(In millions)
|
2012
|
2011
|
2010
|
|||||
Revenues
|
$
|
15,579
|
$
|
16,767
|
$
|
17,180
|
||
Segment profit
|
$
|
3,240
|
$
|
3,703
|
$
|
2,619
|
||
December 31 (In millions)
|
2012
|
2011
|
||||||
Total assets
|
$
|
138,997
|
$
|
138,534
|
||||
(In millions)
|
2012
|
2011
|
2010
|
|||||
Revenues
|
$
|
3,654
|
$
|
3,712
|
$
|
3,744
|
||
Segment profit (loss)
|
$
|
803
|
$
|
(928)
|
$
|
(1,741)
|
||
December 31 (In millions)
|
2012
|
2011
|
||||||
Total assets
|
$
|
46,247
|
$
|
60,873
|
||||
(In millions)
|
2012
|
2011
|
2010
|
|||||
Revenues
|
$
|
1,508
|
$
|
1,223
|
$
|
1,957
|
||
Segment profit
|
$
|
432
|
$
|
440
|
$
|
367
|
||
December 31 (In millions)
|
2012
|
2011
|
||||||
Total assets
|
$
|
19,185
|
$
|
18,357
|
||||
(In millions)
|
2012
|
2011
|
2010
|
|||||
Revenues
|
$
|
5,294
|
$
|
5,262
|
$
|
5,127
|
||
Segment profit
|
$
|
1,220
|
$
|
1,150
|
$
|
1,195
|
||
December 31 (In millions)
|
2012
|
2011
|
||||||
Total assets
|
$
|
49,420
|
$
|
48,821
|
||||
2012
|
2011
|
2010
|
||||||
(In millions)
|
||||||||
Earnings (loss) from discontinued operations,
|
||||||||
net of taxes
|
$
|
(1,186)
|
$
|
(74)
|
$
|
(965)
|
||
(In billions)
|
||||||||
2012
|
2011
|
2010
|
||||||
U.S.
|
$
|
26.4
|
$
|
25.9
|
$
|
25.2
|
||
Europe
|
9.7
|
11.5
|
12.5
|
|||||
Pacific Basin
|
6.3
|
6.5
|
7.2
|
|||||
Americas
|
2.8
|
3.7
|
3.8
|
|||||
Middle East and Africa
|
0.8
|
1.5
|
1.2
|
|||||
Total
|
$
|
46.0
|
$
|
49.1
|
$
|
49.9
|
||
December 31 (In billions)
|
|||||
2012
|
2011
|
||||
U.S.
|
$
|
260.5
|
$
|
264.0
|
|
Europe
|
150.6
|
175.0
|
|||
Pacific Basin
|
49.2
|
54.8
|
|||
Americas
|
28.0
|
36.2
|
|||
Middle East and Africa
|
49.8
|
52.9
|
|||
Total
|
$
|
538.1
|
$
|
582.9
|
|
Financing receivables at
|
Nonearning receivables at
|
Allowance for losses at
|
|||||||||||||||
December 31,
|
December 31,
|
December 31,
|
December 31,
|
December 31,
|
December 31,
|
||||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
|||||||||||
Commercial
|
|||||||||||||||||
CLL
|
|||||||||||||||||
Americas
|
$
|
72,517
|
$
|
80,505
|
$
|
1,333
|
$
|
1,862
|
$
|
490
|
$
|
889
|
|||||
Europe
|
37,035
|
36,899
|
1,299
|
1,167
|
445
|
400
|
|||||||||||
Asia
|
11,401
|
11,635
|
193
|
269
|
80
|
157
|
|||||||||||
Other
|
605
|
436
|
52
|
11
|
6
|
4
|
|||||||||||
Total CLL
|
121,558
|
129,475
|
2,877
|
3,309
|
1,021
|
1,450
|
|||||||||||
Energy
|
|||||||||||||||||
Financial
|
|||||||||||||||||
Services
|
4,851
|
5,912
|
–
|
22
|
9
|
26
|
|||||||||||
GECAS
|
10,915
|
11,901
|
–
|
55
|
8
|
17
|
|||||||||||
Other
|
486
|
1,282
|
13
|
65
|
3
|
37
|
|||||||||||
Total
|
|||||||||||||||||
Commercial
|
137,810
|
148,570
|
2,890
|
3,451
|
1,041
|
1,530
|
|||||||||||
Real Estate
|
|||||||||||||||||
Debt(a)
|
19,746
|
24,501
|
321
|
541
|
279
|
949
|
|||||||||||
Business
|
|||||||||||||||||
Properties(b)
|
1,200
|
8,248
|
123
|
249
|
41
|
140
|
|||||||||||
Total Real Estate
|
20,946
|
32,749
|
444
|
790
|
320
|
1,089
|
|||||||||||
Consumer
|
|||||||||||||||||
Non-U.S.
|
|||||||||||||||||
residential
|
|||||||||||||||||
mortgages(c)
|
33,451
|
35,550
|
2,569
|
2,870
|
480
|
546
|
|||||||||||
Non-U.S.
|
|||||||||||||||||
installment
|
|||||||||||||||||
and revolving
|
|||||||||||||||||
credit
|
18,546
|
18,544
|
224
|
263
|
623
|
717
|
|||||||||||
U.S. installment
|
|||||||||||||||||
and revolving
|
|||||||||||||||||
credit
|
50,853
|
46,689
|
1,026
|
990
|
2,282
|
2,008
|
|||||||||||
Non-U.S. auto
|
4,260
|
5,691
|
24
|
43
|
67
|
101
|
|||||||||||
Other
|
8,070
|
7,244
|
351
|
419
|
172
|
199
|
|||||||||||
Total Consumer
|
115,180
|
113,718
|
4,194
|
4,585
|
3,624
|
3,571
|
|||||||||||
Total
|
$
|
273,936
|
$
|
295,037
|
$
|
7,528
|
$
|
8,826
|
$
|
4,985
|
$
|
6,190
|
|||||
(a)
|
Financing receivables included no construction loans at December 31, 2012 and $0.1 billion of construction loans at December 31, 2011.
|
(b)
|
Our Business Properties portfolio is underwritten primarily by the credit quality of the borrower and secured by tenant and owner-occupied commercial properties. In 2012, we completed the sale of a portion of our Business Properties portfolio.
|
(c)
|
At December 31, 2012, net of credit insurance, about 40% of our Consumer non-U.S. residential mortgage portfolio comprised loans with introductory, below market rates that are scheduled to adjust at future dates; with high loan-to-value ratios at inception (greater than 90%); whose terms permitted interest-only payments; or whose terms resulted in negative amortization. At origination, we underwrite loans with an adjustable rate to the reset value. Of these loans, about 85% are in our U.K. and France portfolios, which comprise mainly loans with interest-only payments, high loan-to-value ratios at inception and introductory below market rates, have a delinquency rate of 15%, have a loan-to-value ratio at origination of 82% and have re-indexed loan-to-value ratios of 91% and 64%, respectively. At December 31, 2012, 10% (based on dollar values) of these loans in our U.K. and France portfolios have been restructured.
|
Nonearning financing receivables
|
Allowance for losses
|
Allowance for losses
|
|||||||||||||||
as a percent of
|
as a percent of
|
as a percent of
|
|||||||||||||||
financing receivables at
|
nonearning financing receivables at
|
total financing receivables at
|
|||||||||||||||
December 31,
|
December 31,
|
December 31,
|
December 31,
|
December 31,
|
December 31,
|
||||||||||||
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Commercial
|
|||||||||||||||||
CLL
|
|||||||||||||||||
Americas
|
1.8
|
%
|
2.3
|
%
|
36.8
|
%
|
47.7
|
%
|
0.7
|
%
|
1.1
|
%
|
|||||
Europe
|
3.5
|
3.2
|
34.3
|
34.3
|
1.2
|
1.1
|
|||||||||||
Asia
|
1.7
|
2.3
|
41.5
|
58.4
|
0.7
|
1.3
|
|||||||||||
Other
|
8.6
|
2.5
|
11.5
|
36.4
|
1.0
|
0.9
|
|||||||||||
Total CLL
|
2.4
|
2.6
|
35.5
|
43.8
|
0.8
|
1.1
|
|||||||||||
Energy Financial Services
|
–
|
0.4
|
–
|
118.2
|
0.2
|
0.4
|
|||||||||||
GECAS
|
–
|
0.5
|
–
|
30.9
|
0.1
|
0.1
|
|||||||||||
Other
|
2.7
|
5.1
|
23.1
|
56.9
|
0.6
|
2.9
|
|||||||||||
Total Commercial
|
2.1
|
2.3
|
36.0
|
44.3
|
0.8
|
1.0
|
|||||||||||
Real Estate
|
|||||||||||||||||
Debt
|
1.6
|
2.2
|
86.9
|
175.4
|
1.4
|
3.9
|
|||||||||||
Business Properties
|
10.3
|
3.0
|
33.3
|
56.2
|
3.4
|
1.7
|
|||||||||||
Total Real Estate
|
2.1
|
2.4
|
72.1
|
137.8
|
1.5
|
3.3
|
|||||||||||
Consumer
|
|||||||||||||||||
Non-U.S.
|
|||||||||||||||||
residential mortgages
|
7.7
|
8.1
|
18.7
|
19.0
|
1.4
|
1.5
|
|||||||||||
Non-U.S.
|
|||||||||||||||||
installment and
|
|||||||||||||||||
revolving credit
|
1.2
|
1.4
|
278.1
|
272.6
|
3.4
|
3.9
|
|||||||||||
U.S. installment
|
|||||||||||||||||
and revolving credit
|
2.0
|
2.1
|
222.4
|
202.8
|
4.5
|
4.3
|
|||||||||||
Non-U.S. auto
|
0.6
|
0.8
|
279.2
|
234.9
|
1.6
|
1.8
|
|||||||||||
Other
|
4.3
|
5.8
|
49.0
|
47.5
|
2.1
|
2.7
|
|||||||||||
Total Consumer
|
3.6
|
4.0
|
86.4
|
77.9
|
3.1
|
3.1
|
|||||||||||
Total
|
2.7
|
3.0
|
66.2
|
70.1
|
1.8
|
2.1
|
|||||||||||
Nonaccrual
|
Nonearning
|
||||
financing
|
financing
|
||||
December 31, 2012 (In millions)
|
receivables
|
receivables
|
|||
Commercial
|
|||||
CLL
|
$
|
4,138
|
$
|
2,877
|
|
Energy Financial Services
|
–
|
–
|
|||
GECAS
|
3
|
–
|
|||
Other
|
25
|
13
|
|||
Total Commercial
|
4,166
|
2,890
|
|||
Real Estate
|
4,885
|
444
|
|||
Consumer
|
4,301
|
4,194
|
|||
Total
|
$
|
13,352
|
$
|
7,528
|
|
December 31 (In millions)
|
2012
|
2011
|
|||
Loans requiring allowance for losses
|
|||||
Commercial(a)
|
$
|
1,372
|
$
|
2,357
|
|
Real Estate
|
2,202
|
4,957
|
|||
Consumer
|
3,115
|
2,824
|
|||
Total loans requiring allowance for losses
|
6,689
|
10,138
|
|||
Loans expected to be fully recoverable
|
|||||
Commercial(a)
|
3,697
|
3,305
|
|||
Real Estate
|
3,491
|
3,790
|
|||
Consumer
|
105
|
69
|
|||
Total loans expected to be fully recoverable
|
7,293
|
7,164
|
|||
Total impaired loans
|
$
|
13,982
|
$
|
17,302
|
|
Allowance for losses (specific reserves)
|
|||||
Commercial(a)
|
$
|
487
|
$
|
812
|
|
Real Estate(b)
|
188
|
822
|
|||
Consumer
|
674
|
680
|
|||
Total allowance for losses (specific reserves)
|
$
|
1,349
|
$
|
2,314
|
|
Average investment during the period
|
$
|
16,269
|
$
|
18,167
|
|
Interest income earned while impaired(c)
|
751
|
733
|
|||
(a)
|
Includes CLL, Energy Financial Services, GECAS and Other.
|
(b)
|
Specific reserves declined approximately $0.3 billion in 2012 attributable to a change in our write-off policies for collateral dependent loans, requiring write-offs for loans with specific reserves aged greater than 360 days.
|
(c)
|
Recognized principally on a cash basis.
|
December 31 (In millions)
|
2012
|
2011
|
|||
Method used to measure impairment
|
|||||
Discounted cash flow
|
$
|
6,704
|
$
|
8,858
|
|
Collateral value
|
7,278
|
8,444
|
|||
Total
|
$
|
13,982
|
$
|
17,302
|
Rest of
|
Total
|
||||||||||||||||||||||
December 31, 2012 (In millions)
|
Spain
|
Portugal
|
Ireland
|
Italy
|
Greece
|
Hungary
|
Europe
|
Europe
|
|||||||||||||||
Financing receivables,
|
|||||||||||||||||||||||
before allowance
|
|||||||||||||||||||||||
for losses on
|
|||||||||||||||||||||||
financing receivables
|
$
|
1,871
|
$
|
471
|
$
|
275
|
$
|
7,161
|
$
|
56
|
$
|
3,207
|
$
|
77,480
|
$
|
90,521
|
|||||||
Allowance for losses on
|
|||||||||||||||||||||||
financing receivables
|
(102)
|
(28)
|
(9)
|
(241)
|
-
|
(112)
|
(1,176)
|
(1,668)
|
|||||||||||||||
Financing receivables,
|
|||||||||||||||||||||||
net of allowance
|
|||||||||||||||||||||||
for losses on
|
|||||||||||||||||||||||
financing receivables(a)(b)
|
1,769
|
443
|
266
|
6,920
|
56
|
3,095
|
76,304
|
88,853
|
|||||||||||||||
Investments(c)(d)
|
119
|
-
|
-
|
497
|
-
|
257
|
1,401
|
2,274
|
|||||||||||||||
Cost and equity method
|
|||||||||||||||||||||||
investments(e)
|
441
|
21
|
360
|
64
|
33
|
3
|
652
|
1,574
|
|||||||||||||||
Derivatives,
|
|||||||||||||||||||||||
net of collateral(c)(f)
|
3
|
-
|
-
|
90
|
-
|
-
|
176
|
269
|
|||||||||||||||
ELTO(g)
|
524
|
65
|
374
|
853
|
253
|
345
|
9,901
|
12,315
|
|||||||||||||||
Real estate held for
|
|||||||||||||||||||||||
investment(g)
|
791
|
-
|
-
|
410
|
-
|
-
|
6,014
|
7,215
|
|||||||||||||||
Total funded exposures(h)
|
$
|
3,647
|
$
|
529
|
$
|
1,000
|
$
|
8,834
|
$
|
342
|
$
|
3,700
|
$
|
94,448
|
$
|
112,500
|
|||||||
Unfunded commitments(i)
|
$
|
17
|
$
|
8
|
$
|
177
|
$
|
297
|
$
|
5
|
$
|
683
|
$
|
8,376
|
$
|
9,563
|
|||||||
(a)
|
Financing receivable amounts are classified based on the location or nature of the related obligor.
|
(b)
|
Substantially all relates to non-sovereign obligors. Includes residential mortgage loans of approximately $33.2 billion before consideration of purchased credit protection. We have third-party mortgage insurance for less than 15% of these residential mortgage loans, substantially all of which were originated in the U.K., Poland and France.
|
(c)
|
Investments and derivatives are classified based on the location of the parent of the obligor or issuer.
|
(d)
|
Includes $0.9 billion related to financial institutions, $0.2 billion related to non-financial institutions and $1.2 billion related to sovereign issuers. Sovereign issuances totaled $0.1 billion and $0.2 billion related to Italy and Hungary, respectively. We held no investments issued by sovereign entities in the other focus countries.
|
(e)
|
Substantially all is non-sovereign.
|
(f)
|
Net of cash collateral; entire amount is non-sovereign.
|
(g)
|
These assets are held under long-term investment and operating strategies, and our equipment leased to others (ELTO) strategies contemplate an ability to redeploy assets under lease should default by the lessee occur. The values of these assets could be subject to decline or impairment in the current environment.
|
(h)
|
Excludes $29.9 billion of cash and equivalents, which is composed of $17.4 billion of cash on short-term placement with highly rated global financial institutions based in Europe, sovereign central banks and agencies or supranational entities, of which $1.4 billion is in focus countries, and $12.5 billion of cash and equivalents placed with highly rated European financial institutions on a short-term basis, secured by U.S. Treasury securities ($9.7 billion) and sovereign bonds of non-focus countries ($2.8 billion), where the value of our collateral exceeds the amount of our cash exposure.
|
(i)
|
Includes ordinary course of business lending commitments, commercial and consumer unused revolving credit lines, inventory financing arrangements and investment commitments.
|
·
|
It is our policy to minimize exposure to interest rate changes. We fund our financial investments using debt or a combination of debt and hedging instruments so that the interest rates of our borrowings match the expected interest rate profile on our assets. To test the effectiveness of our fixed rate positions, we assumed that, on January 1, 2013, interest rates increased by 100 basis points across the yield curve (a “parallel shift” in that curve) and further assumed that the increase remained in place for 2013. We estimated, based on the year-end 2012 portfolio and holding all other assumptions constant, that our 2013 consolidated net earnings would decline by less than $0.1 billion as a result of this parallel shift in the yield curve.
|
|
|
·
|
It is our policy to minimize currency exposures and to conduct operations either within functional currencies or using the protection of hedge strategies. We analyzed year-end 2012 consolidated currency exposures, including derivatives designated and effective as hedges, to identify assets and liabilities denominated in other than their relevant functional currencies. For such assets and liabilities, we then evaluated the effects of a 10% shift in exchange rates between those currencies and the U.S. dollar, holding all other assumptions constant. This analysis indicated that our 2013 consolidated net earnings would decline by less than $0.1 billion as a result of such a shift in exchange rates.
|
·
|
Changes in AOCI related to investment securities increased shareowners’ equity by $0.7 billion and $0.6 billion in 2012 and 2011, respectively, reflecting the effects of lower interest rates and improved market conditions on U.S. corporate securities, partially offset by adjustments to reflect the effect of the unrealized gains on insurance-related assets and equity. Investment securities increased shareowners’ equity by an insignificant amount in 2010. Further information about investment securities is provided in Note 3 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.
|
·
|
Changes in AOCI related to the fair value of derivatives designated as cash flow hedges increased shareowners’ equity by $0.4 billion in 2012, primarily reflecting releases from AOCI contemporaneous with the earnings effects of the related hedged items, principally as an adjustment of interest expense on borrowings. Cash flow hedges increased shareowners’ equity by $0.2 billion and $0.5 billion in 2011 and 2010, respectively. Further information about the fair value of derivatives is provided in Note 15 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.
|
·
|
Changes in AOCI related to currency translation adjustments increased shareowners’ equity by $0.3 billion and $1.0 billion in 2012 and 2011, respectively, and decreased equity by $2.7 billion in 2010. Changes in currency translation adjustments reflect the effects of changes in currency exchange rates on our net investment in non-U.S. subsidiaries that have functional currencies other than the U.S. dollar. At year-end 2012, the U.S. dollar weakened against most major currencies, including the pound sterling and the euro, and strengthened against the Japanese yen resulting in increases in currency translation adjustments which were partially offset by releases from AOCI related to dispositions. At year-end 2011 and 2010, the dollar strengthened against most major currencies, including the pound sterling and the euro, and weakened against the Australian dollar and the Japanese yen.
|
Payments due by period
|
||||||||||||||
2018 and
|
||||||||||||||
(In billions)
|
Total
|
2013
|
2014-2015
|
2016-2017
|
thereafter
|
|||||||||
Borrowings and bank deposits (Note 8)
|
$
|
397.3
|
$
|
133.7
|
$
|
101.2
|
$
|
56.8
|
$
|
105.6
|
||||
Interest on borrowings and bank deposits
|
87.3
|
9.0
|
13.3
|
9.3
|
55.7
|
|||||||||
Purchase obligations(a)(b)
|
35.8
|
11.8
|
9.3
|
3.3
|
11.4
|
|||||||||
Insurance liabilities (Note 9)(c)
|
14.0
|
1.6
|
2.9
|
2.0
|
7.5
|
|||||||||
Operating lease obligations (Note 13)
|
1.6
|
0.3
|
0.5
|
0.3
|
0.5
|
|||||||||
Other liabilities(d)
|
16.5
|
14.9
|
0.4
|
0.2
|
1.0
|
|||||||||
Contractual obligations of
|
||||||||||||||
discontinued operations(e)
|
1.9
|
1.9
|
–
|
–
|
–
|
|||||||||
(a)
|
Included all take-or-pay arrangements, capital expenditures, contractual commitments to purchase equipment that will be leased to others, contractual commitments related to factoring agreements, software acquisition/license commitments and any contractually required cash payments for acquisitions.
|
(b)
|
Excluded funding commitments entered into in the ordinary course of business. Further information on these commitments and other guarantees is provided in Note 18 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.
|
(c)
|
Included contracts with reasonably determinable cash flows such as structured settlements, guaranteed investment contracts and certain property and casualty contracts, and excluded long-term care, variable annuity and other life insurance contracts.
|
(d)
|
Included an estimate of future expected funding requirements related to our pension and postretirement benefit plans and included liabilities for unrecognized tax benefits. Because their future cash outflows are uncertain, the following non-current liabilities are excluded from the table above: deferred taxes, derivatives, deferred revenue and other sundry items. For further information on certain of these items, see Notes 10 and 15 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.
|
(e)
|
Included payments for other liabilities.
|
·
|
Average total GECC shareowners’ equity, excluding effects of discontinued operations
|
·
|
Ratio of debt to equity, net of cash and equivalents and with classification of hybrid debt as equity
|
·
|
GE Capital ending net investment (ENI), excluding cash and equivalents
|
December 31 (In millions)
|
2012
|
2011
|
2010
|
2009
|
2008
|
|||||||||
Average total GECC shareowners' equity(b)
|
$
|
79,956
|
$
|
73,852
|
$
|
68,490
|
$
|
64,689
|
$
|
56,896
|
||||
Less the effects of the average net
|
||||||||||||||
investment in discontinued operations
|
(373)
|
5,033
|
13,935
|
17,546
|
9,425
|
|||||||||
Average total GECC shareowners' equity,
|
||||||||||||||
excluding effects of discontinued
|
||||||||||||||
operations(a)
|
$
|
80,329
|
$
|
68,819
|
$
|
54,555
|
$
|
47,143
|
$
|
47,471
|
||||
(a)
|
Used for computing return on average shareowners’ equity and return on average total capital invested (ROTC).
|
(b)
|
On an annual basis, calculated using a five-point average.
|
December 31 (Dollars in millions)
|
2012
|
2011
|
2010
|
|||||
GECC debt
|
$
|
397,300
|
$
|
443,097
|
$
|
470,520
|
||
Less cash and equivalents
|
61,941
|
76,702
|
60,257
|
|||||
Less hybrid debt
|
7,725
|
7,725
|
7,725
|
|||||
$
|
327,634
|
$
|
358,670
|
$
|
402,538
|
|||
GECC equity
|
$
|
81,890
|
$
|
77,110
|
$
|
68,984
|
||
Plus hybrid debt
|
7,725
|
7,725
|
7,725
|
|||||
$
|
89,615
|
$
|
84,835
|
$
|
76,709
|
|||
Ratio
|
3.66:1
|
4.23:1
|
5.25:1
|
|||||
December 31,
|
January 1,
|
|||||
(In billions)
|
2012
|
2009
|
(a)
|
|||
GECC total assets
|
$
|
539.2
|
$
|
661.0
|
||
Less assets of discontinued operations
|
1.1
|
25.1
|
||||
Less non-interest bearing liabilities
|
57.6
|
85.4
|
||||
GE Capital ENI
|
480.5
|
550.5
|
||||
Less cash and equivalents
|
61.9
|
37.7
|
||||
GE Capital ENI, excluding cash and equivalents
|
$
|
418.6
|
$
|
512.8
|
||
(a)
|
As originally reported.
|
/s/ Michael A. Neal
|
/s/ Jeffrey S. Bornstein
|
|
Michael A. Neal
|
Jeffrey S. Bornstein
|
|
Chief Executive Officer
|
Chief Financial Officer
|
For the years ended December 31 (In millions)
|
2012
|
2011
|
2010
|
|||||
Revenues
|
||||||||
Revenues from services (Note 12)(a)
|
$
|
46,060
|
$
|
49,307
|
$
|
49,576
|
||
Other-than-temporary impairment on investment securities:
|
||||||||
Total other-than-temporary impairment on investment securities
|
(192)
|
(467)
|
(460)
|
|||||
Less: Portion of other-than-temporary impairment recognized in
|
||||||||
accumulated other comprehensive income
|
52
|
80
|
207
|
|||||
Net other-than-temporary impairment on investment securities
|
||||||||
recognized in earnings
|
(140)
|
(387)
|
(253)
|
|||||
Revenues from services (Note 12)
|
45,920
|
48,920
|
49,323
|
|||||
Sales of goods
|
119
|
148
|
533
|
|||||
Total revenues
|
46,039
|
49,068
|
49,856
|
|||||
Costs and expenses
|
||||||||
Interest
|
11,697
|
13,866
|
14,510
|
|||||
Operating and administrative (Note 13)
|
12,358
|
13,330
|
14,660
|
|||||
Cost of goods sold
|
99
|
135
|
501
|
|||||
Investment contracts, insurance losses and insurance annuity benefits
|
2,984
|
3,059
|
3,197
|
|||||
Provision for losses on financing receivables (Note 4)
|
3,891
|
3,951
|
7,085
|
|||||
Depreciation and amortization (Note 5)
|
7,055
|
7,117
|
7,752
|
|||||
Total costs and expenses
|
38,084
|
41,458
|
47,705
|
|||||
Earnings (loss) from continuing operations before income taxes
|
7,955
|
7,610
|
2,151
|
|||||
Benefit (provision) for income taxes (Note 10)
|
(491)
|
(899)
|
985
|
|||||
Earnings from continuing operations
|
7,464
|
6,711
|
3,136
|
|||||
Earnings (loss) from discontinued operations, net of taxes (Note 2)
|
(1,186)
|
(74)
|
(965)
|
|||||
Net earnings (loss)
|
6,278
|
6,637
|
2,171
|
|||||
Less net earnings (loss) attributable to noncontrolling interests
|
63
|
127
|
16
|
|||||
Net earnings (loss) attributable to GECC
|
6,215
|
6,510
|
2,155
|
|||||
Preferred stock dividends declared
|
(123)
|
–
|
–
|
|||||
Net earnings attributable to GECC common shareowner
|
$
|
6,092
|
$
|
6,510
|
$
|
2,155
|
||
Amounts attributable to GECC
|
||||||||
Earnings from continuing operations
|
$
|
7,401
|
$
|
6,584
|
$
|
3,120
|
||
Earnings (loss) from discontinued operations, net of taxes
|
(1,186)
|
(74)
|
(965)
|
|||||
Net earnings (loss) attributable to GECC
|
$
|
6,215
|
$
|
6,510
|
$
|
2,155
|
||
(a)
|
Excluding net other-than-temporary impairment on investment securities.
|
For the years ended December 31 (In millions)
|
2012
|
2011
|
2010
|
|||||
Net earnings
|
$
|
6,278
|
$
|
6,637
|
$
|
2,171
|
||
Less: net earnings (loss) attributable to noncontrolling interests
|
63
|
127
|
16
|
|||||
Net earnings attributable to GECC
|
$
|
6,215
|
$
|
6,510
|
$
|
2,155
|
||
Other comprehensive income (loss)
|
||||||||
Investment securities
|
$
|
707
|
$
|
606
|
$
|
14
|
||
Currency translation adjustments
|
280
|
984
|
(2,729)
|
|||||
Cash flow hedges
|
354
|
194
|
539
|
|||||
Benefit plans
|
(173)
|
(183)
|
54
|
|||||
Other comprehensive income (loss)
|
1,168
|
1,601
|
(2,122)
|
|||||
Less: other comprehensive income (loss) attributable to noncontrolling interests
|
12
|
(14)
|
57
|
|||||
Other comprehensive income (loss) attributable to GECC
|
$
|
1,156
|
$
|
1,615
|
$
|
(2,179)
|
||
Comprehensive income
|
$
|
7,446
|
$
|
8,238
|
$
|
49
|
||
Less: comprehensive income attributable to noncontrolling interests
|
75
|
113
|
73
|
|||||
Comprehensive income attributable to GECC
|
$
|
7,371
|
$
|
8,125
|
$
|
(24)
|
||
(In millions)
|
2012
|
2011
|
2010
|
||||||||
Beginning balance at January 1
|
$
|
77,110
|
$
|
68,984
|
$
|
70,833
|
|||||
Increases from net earnings attributable to GECC
|
6,215
|
6,510
|
2,155
|
||||||||
Dividends and other
|
(6,549)
|
–
|
50
|
||||||||
Other comprehensive income (loss) attributable to GECC
|
1,156
|
1,615
|
(2,179)
|
||||||||
Changes in additional paid-in capital
|
3,958
|
1
|
35
|
||||||||
Cumulative effect of changes in accounting principles(a)
|
–
|
–
|
(1,910)
|
||||||||
Ending balance at December 31
|
81,890
|
77,110
|
68,984
|
||||||||
Noncontrolling interests
|
707
|
690
|
1,164
|
||||||||
Total equity balance at December 31
|
$
|
82,597
|
$
|
77,800
|
$
|
70,148
|
|||||
|
See Note 11 for further information about changes in shareowners’ equity.
|
(a)
|
On January 1, 2010, we adopted amendments to Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 860, Transfers and Servicing, and ASC 810, Consolidation, and recorded a cumulative effect adjustment. See Notes 11 and 17.
|
|
See accompanying notes.
|
At December 31 (In millions, except share amounts)
|
2012
|
2011
|
|||
Assets
|
|||||
Cash and equivalents
|
$
|
61,941
|
$
|
76,702
|
|
Investment securities (Note 3)
|
48,439
|
47,359
|
|||
Inventories
|
79
|
51
|
|||
Financing receivables – net (Notes 4 and 16)
|
268,951
|
288,847
|
|||
Other receivables
|
13,988
|
13,390
|
|||
Property, plant and equipment– net (Note 5)
|
53,673
|
51,419
|
|||
Goodwill (Note 6)
|
27,304
|
27,230
|
|||
Other intangible assets – net (Note 6)
|
1,294
|
1,546
|
|||
Other assets (Note 7)
|
62,217
|
75,612
|
|||
Assets of businesses held for sale (Note 2)
|
211
|
711
|
|||
Assets of discontinued operations (Note 2)
|
1,126
|
1,669
|
|||
Total assets(a)
|
$
|
539,223
|
$
|
584,536
|
|
Liabilities and equity
|
|||||
Short-term borrowings (Note 8)
|
$
|
95,940
|
$
|
136,333
|
|
Accounts payable
|
6,277
|
7,239
|
|||
Non-recourse borrowings of consolidated securitization entities (Note 8)
|
30,123
|
29,258
|
|||
Bank deposits (Note 8)
|
46,461
|
43,115
|
|||
Long-term borrowings (Note 8)
|
224,776
|
234,391
|
|||
Investment contracts, insurance liabilities and insurance annuity benefits (Note 9)
|
28,696
|
30,198
|
|||
Other liabilities
|
16,050
|
17,334
|
|||
Deferred income taxes (Note 10)
|
5,871
|
7,052
|
|||
Liabilities of businesses held for sale (Note 2)
|
157
|
345
|
|||
Liabilities of discontinued operations (Note 2)
|
2,275
|
1,471
|
|||
Total liabilities(a)
|
456,626
|
506,736
|
|||
Preferred stock, $0.01 par value (750,000 shares authorized at December 31, 2012 and 2011,
|
|||||
and 40,000 shares and 0 shares issued and outstanding at December 31, 2012
|
|||||
and 2011, respectively)
|
–
|
–
|
|||
Common stock, $14 par value (4,166,000 shares authorized at December 31, 2012 and 2011,
|
|||||
and 1,000 shares issued and outstanding at December 31, 2012 and 2011, respectively)
|
–
|
–
|
|||
Accumulated other comprehensive income attributable to GECC(b)
|
|||||
Investment securities
|
673
|
(33)
|
|||
Currency translation adjustments
|
(131)
|
(399)
|
|||
Cash flow hedges
|
(746)
|
(1,101)
|
|||
Benefit plans
|
(736)
|
(563)
|
|||
Additional paid-in capital
|
31,586
|
27,628
|
|||
Retained earnings
|
51,244
|
51,578
|
|||
Total GECC shareowners' equity
|
81,890
|
77,110
|
|||
Noncontrolling interests(c) (Note 11)
|
707
|
690
|
|||
Total equity (Note 11)
|
82,597
|
77,800
|
|||
Total liabilities and equity
|
$
|
539,223
|
$
|
584,536
|
|
(a)
|
Our consolidated assets at December 31, 2012 include total assets of $45,814 million of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs. These assets include net financing receivables of $40,287 million and investment securities of $3,419 million. Our consolidated liabilities at December 31, 2012 include liabilities of certain VIEs for which the VIE creditors do not have recourse to General Electric Capital Corporation (GECC). These liabilities include non-recourse borrowings of consolidated securitization entities (CSEs) of $29,123 million. See Note 17.
|
(b)
|
The sum of accumulated other comprehensive income attributable to GECC was $(940) million and $(2,096) million at December 31, 2012 and 2011, respectively.
|
(c)
|
Included accumulated other comprehensive income attributable to noncontrolling interests of $(129) million and $(141) million at December 31, 2012 and 2011, respectively.
|
For the years ended December 31 (In millions)
|
2012
|
2011
|
2010
|
|||||
Cash flows – operating activities
|
||||||||
Net earnings
|
$
|
6,278
|
$
|
6,637
|
$
|
2,171
|
||
Less net earnings attributable to noncontrolling interests
|
63
|
127
|
16
|
|||||
Net earnings attributable to GECC
|
6,215
|
6,510
|
2,155
|
|||||
(Earnings) loss from discontinued operations
|
1,186
|
74
|
965
|
|||||
Adjustments to reconcile net earnings attributable to GECC
|
||||||||
to cash provided from operating activities
|
||||||||
Depreciation and amortization of property, plant and equipment
|
7,055
|
7,117
|
7,752
|
|||||
Deferred income taxes
|
(877)
|
124
|
1,307
|
|||||
Decrease (increase) in inventories
|
(27)
|
15
|
5
|
|||||
Increase (decrease) in accounts payable
|
(867)
|
50
|
(116)
|
|||||
Provision for losses on financing receivables
|
3,891
|
3,951
|
7,085
|
|||||
All other operating activities (Note 19)
|
5,392
|
3,282
|
2,482
|
|||||
Cash from (used for) operating activities – continuing operations
|
21,968
|
21,123
|
21,635
|
|||||
Cash from (used for) operating activities – discontinued operations
|
79
|
737
|
(133)
|
|||||
Cash from (used for) operating activities
|
22,047
|
21,860
|
21,502
|
|||||
Cash flows – investing activities
|
||||||||
Additions to property, plant and equipment
|
(11,886)
|
(9,882)
|
(7,674)
|
|||||
Dispositions of property, plant and equipment
|
6,200
|
5,896
|
7,208
|
|||||
Net decrease (increase) in financing receivables (Note 19)
|
5,383
|
14,370
|
23,046
|
|||||
Proceeds from sales of discontinued operations
|
227
|
8,950
|
2,510
|
|||||
Proceeds from principal business dispositions
|
2,863
|
2,623
|
1,171
|
|||||
Payments for principal businesses purchased
|
–
|
(50)
|
(559)
|
|||||
All other investing activities (Note 19)
|
11,701
|
7,301
|
9,960
|
|||||
Cash from (used for) investing activities – continuing operations
|
14,488
|
29,208
|
35,662
|
|||||
Cash from (used for) investing activities – discontinued operations
|
(97)
|
(714)
|
(1,352)
|
|||||
Cash from (used for) investing activities
|
14,391
|
28,494
|
34,310
|
|||||
Cash flows – financing activities
|
||||||||
Net increase (decrease) in borrowings (maturities of 90 days or less)
|
(1,401)
|
4,393
|
(652)
|
|||||
Net increase (decrease) in bank deposits
|
2,432
|
6,748
|
4,603
|
|||||
Newly issued debt (maturities longer than 90 days) (Note 19)
|
55,841
|
43,267
|
37,971
|
|||||
Repayments and other debt reductions (maturities longer than 90 days) (Note 19)
|
(103,908)
|
(85,436)
|
(97,379)
|
|||||
Proceeds from issuance of preferred stock
|
3,960
|
–
|
–
|
|||||
Dividends paid to shareowners
|
(6,549)
|
–
|
–
|
|||||
Purchases of subsidiary shares from noncontrolling interests
|
–
|
(275)
|
(633)
|
|||||
All other financing activities (Note 19)
|
(2,868)
|
(1,792)
|
(3,318)
|
|||||
Cash from (used for) financing activities – continuing operations
|
(52,493)
|
(33,095)
|
(59,408)
|
|||||
Cash from (used for) financing activities – discontinued operations
|
–
|
(44)
|
(337)
|
|||||
Cash from (used for) financing activities
|
(52,493)
|
(33,139)
|
(59,745)
|
|||||
Effect of currency exchange rate changes on cash and equivalents
|
1,276
|
(791)
|
(208)
|
|||||
Increase (decrease) in cash and equivalents
|
(14,779)
|
16,424
|
(4,141)
|
|||||
Cash and equivalents at beginning of year
|
76,823
|
60,399
|
64,540
|
|||||
Cash and equivalents at end of year
|
62,044
|
76,823
|
60,399
|
|||||
Less cash and equivalents of discontinued operations at end of year
|
103
|
121
|
142
|
|||||
Cash and equivalents of continuing operations at end of year
|
$
|
61,941
|
$
|
76,702
|
$
|
60,257
|
||
Supplemental disclosure of cash flows information
|
||||||||
Cash paid during the year for interest
|
$
|
(12,172)
|
$
|
(15,018)
|
$
|
(16,401)
|
||
Cash recovered (paid) during the year for income taxes
|
(250)
|
(616)
|
104
|
|||||
Level 1 –
|
Quoted prices for identical instruments in active markets.
|
Level 2 –
|
Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
|
Level 3 –
|
Significant inputs to the valuation model are unobservable.
|
December 31 (In millions)
|
2012
|
2011
|
|||
|
|||||
Assets
|
|
||||
Cash and equivalents
|
$
|
74
|
$
|
149
|
|
Financing receivables – net
|
47
|
412
|
|||
Property, plant and equipment – net
|
|
31
|
|
|
81
|
All other
|
59
|
69
|
|||
Assets of businesses held for sale
|
$
|
211
|
$
|
711
|
|
Liabilities
|
|||||
Short-term borrowings
|
$
|
138
|
$
|
252
|
|
All other
|
|
19
|
|
|
93
|
Liabilities of businesses held for sale
|
$
|
157
|
|
$
|
345
|
(In millions)
|
2012
|
2011
|
2010
|
|||||
Operations
|
||||||||
Total revenues
|
$
|
(486)
|
$
|
329
|
$
|
2,060
|
||
Earnings (loss) from discontinued operations before income taxes
|
$
|
(612)
|
$
|
(187)
|
$
|
118
|
||
Benefit (provision) for income taxes
|
169
|
91
|
101
|
|||||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(443)
|
$
|
(96)
|
$
|
219
|
||
Disposal
|
||||||||
Gain (loss) on disposal before income taxes
|
$
|
(792)
|
$
|
(329)
|
$
|
(1,420)
|
||
Benefit (provision) for income taxes
|
49
|
351
|
236
|
|||||
Gain (loss) on disposal, net of taxes
|
$
|
(743)
|
$
|
22
|
$
|
(1,184)
|
||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(1,186)
|
$
|
(74)
|
$
|
(965)
|
||
December 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Assets
|
||||||||
Cash and equivalents
|
$
|
103
|
$
|
121
|
||||
Financing receivables - net
|
3
|
521
|
||||||
Other
|
1,020
|
1,027
|
||||||
Assets of discontinued operations
|
$
|
1,126
|
$
|
1,669
|
||||
Liabilities
|
||||||||
Deferred income taxes
|
$
|
374
|
$
|
207
|
||||
Other
|
1,901
|
1,264
|
||||||
Liabilities of discontinued operations
|
$
|
2,275
|
$
|
1,471
|
||||
2012
|
2011
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
Gross
|
||||||||||||||||||||
Amortized
|
unrealized
|
unrealized
|
Estimated
|
Amortized
|
unrealized
|
unrealized
|
Estimated
|
||||||||||||||||
December 31 (In millions)
|
cost
|
gains
|
losses
|
fair value
|
cost
|
gains
|
losses
|
fair value
|
|||||||||||||||
Debt
|
|||||||||||||||||||||||
U.S. corporate
|
$
|
20,233
|
$
|
4,201
|
$
|
(302)
|
$
|
24,132
|
$
|
20,748
|
$
|
3,432
|
$
|
(410)
|
$
|
23,770
|
|||||||
State and municipal
|
4,084
|
575
|
(113)
|
4,546
|
3,027
|
350
|
(143)
|
3,234
|
|||||||||||||||
Residential
|
|||||||||||||||||||||||
mortgage-backed(a)
|
2,198
|
183
|
(119)
|
2,262
|
2,711
|
184
|
(286)
|
2,609
|
|||||||||||||||
Commercial
|
|||||||||||||||||||||||
mortgage-backed
|
2,930
|
259
|
(95)
|
3,094
|
2,913
|
162
|
(247)
|
2,828
|
|||||||||||||||
Asset-backed
|
5,784
|
31
|
(77)
|
5,738
|
5,102
|
32
|
(164)
|
4,970
|
|||||||||||||||
Corporate – non-U.S.
|
2,391
|
150
|
(126)
|
2,415
|
2,414
|
126
|
(207)
|
2,333
|
|||||||||||||||
Government – non-U.S.
|
1,617
|
149
|
(3)
|
1,763
|
2,488
|
129
|
(86)
|
2,531
|
|||||||||||||||
U.S. government and
|
|||||||||||||||||||||||
federal agency
|
3,462
|
103
|
–
|
3,565
|
3,974
|
84
|
-
|
4,058
|
|||||||||||||||
Retained interests
|
76
|
7
|
–
|
83
|
25
|
10
|
-
|
35
|
|||||||||||||||
Equity
|
|||||||||||||||||||||||
Available-for-sale
|
513
|
86
|
(3)
|
596
|
713
|
75
|
(38)
|
750
|
|||||||||||||||
Trading
|
245
|
–
|
–
|
245
|
241
|
-
|
-
|
241
|
|||||||||||||||
Total
|
$
|
43,533
|
$
|
5,744
|
$
|
(838)
|
$
|
48,439
|
$
|
44,356
|
$
|
4,584
|
$
|
(1,581)
|
$
|
47,359
|
|||||||
In loss position for
|
||||||||||||
Less than 12 months
|
12 months or more
|
|||||||||||
Gross
|
|
Gross
|
||||||||||
Estimated
|
unrealized
|
Estimated
|
unrealized
|
|||||||||
December 31 (In millions)
|
fair value
|
losses
|
(a)
|
fair value
|
losses
|
(a)
|
||||||
2012
|
||||||||||||
Debt
|
||||||||||||
U.S. corporate
|
$
|
434
|
$
|
(7)
|
$
|
813
|
$
|
(295)
|
||||
State and municipal
|
146
|
(2)
|
326
|
(111)
|
||||||||
Residential mortgage-backed
|
98
|
(1)
|
691
|
(118)
|
||||||||
Commercial mortgage-backed
|
37
|
–
|
979
|
(95)
|
||||||||
Asset-backed
|
18
|
(1)
|
658
|
(76)
|
||||||||
Corporate – non-U.S.
|
167
|
(8)
|
602
|
(118)
|
||||||||
Government – non-U.S.
|
201
|
(1)
|
37
|
(2)
|
||||||||
U.S. government and federal agency
|
–
|
–
|
–
|
–
|
||||||||
Retained interests
|
3
|
–
|
–
|
–
|
||||||||
Equity
|
26
|
(3)
|
–
|
–
|
||||||||
Total
|
$
|
1,130
|
$
|
(23)
|
$
|
4,106
|
$
|
(815)
|
||||
2011
|
||||||||||||
Debt
|
||||||||||||
U.S. corporate
|
$
|
1,435
|
$
|
(241)
|
$
|
836
|
$
|
(169)
|
||||
State and municipal
|
87
|
(1)
|
307
|
(142)
|
||||||||
Residential mortgage-backed
|
219
|
(9)
|
825
|
(277)
|
||||||||
Commercial mortgage-backed
|
244
|
(23)
|
1,320
|
(224)
|
||||||||
Asset-backed
|
100
|
(7)
|
850
|
(157)
|
||||||||
Corporate – non-U.S.
|
330
|
(28)
|
607
|
(179)
|
||||||||
Government – non-U.S.
|
906
|
(5)
|
203
|
(81)
|
||||||||
U.S. government and federal agency
|
502
|
–
|
–
|
–
|
||||||||
Retained interests
|
–
|
–
|
–
|
–
|
||||||||
Equity
|
440
|
(38)
|
–
|
–
|
||||||||
Total
|
$
|
4,263
|
$
|
(352)
|
$
|
4,948
|
$
|
(1,229)
|
||||
(a)
|
Includes gross unrealized losses at December 31, 2012 of $(157) million related to securities that had other-than-temporary impairments previously recognized.
|
Amortized
|
Estimated
|
||||
(In millions)
|
cost
|
fair value
|
|||
Due in
|
|||||
2013
|
$
|
1,937
|
$
|
1,960
|
|
2014-2017
|
7,167
|
7,180
|
|||
2018-2022
|
4,782
|
5,283
|
|||
2023 and later
|
17,901
|
21,998
|
|||
(In millions)
|
2012
|
2011
|
2010
|
|||||
Gains
|
$
|
177
|
$
|
205
|
$
|
190
|
||
Losses, including impairments
|
(211)
|
(402)
|
(281)
|
|||||
Net
|
$
|
(34)
|
$
|
(197)
|
$
|
(91)
|
||
December 31 (In millions)
|
2012
|
2011
|
|||
Loans, net of deferred income(a)
|
$
|
241,465
|
$
|
256,895
|
|
Investment in financing leases, net of deferred income
|
32,471
|
38,142
|
|||
273,936
|
295,037
|
||||
Less allowance for losses
|
(4,985)
|
(6,190)
|
|||
Financing receivables – net(b)
|
$
|
268,951
|
$
|
288,847
|
|
(a)
|
(b)
|
Financing receivables at December 31, 2012 and December 31, 2011 included $750 million and $1,062 million, respectively, relating to loans that had been acquired in a transfer but have been subject to credit deterioration since origination per ASC 310, Receivables.
|
Total financing leases
|
Direct financing leases(a)
|
Leveraged leases(b)
|
|||||||||||||||
December 31 (In millions)
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
|||||||||||
Total minimum lease payments receivable
|
$
|
36,451
|
$
|
44,157
|
$
|
29,416
|
$
|
33,667
|
$
|
7,035
|
$
|
10,490
|
|||||
Less principal and interest on third-party
|
|||||||||||||||||
non-recourse debt
|
(4,662)
|
(6,812)
|
-
|
-
|
(4,662)
|
(6,812)
|
|||||||||||
Net rentals receivables
|
31,789
|
37,345
|
29,416
|
33,667
|
2,373
|
3,678
|
|||||||||||
Estimated unguaranteed residual value of
|
|||||||||||||||||
leased assets
|
6,346
|
7,592
|
4,272
|
5,140
|
2,074
|
2,452
|
|||||||||||
Less deferred income
|
(5,664)
|
(6,795)
|
(4,453)
|
(5,219)
|
(1,211)
|
(1,576)
|
|||||||||||
Investment in financing leases, net of
|
|||||||||||||||||
deferred income
|
32,471
|
38,142
|
29,235
|
33,588
|
3,236
|
4,554
|
|||||||||||
Less amounts to arrive at net investment
|
|||||||||||||||||
Allowance for losses
|
(198)
|
(294)
|
(193)
|
(281)
|
(5)
|
(13)
|
|||||||||||
Deferred taxes
|
(4,506)
|
(6,718)
|
(2,245)
|
(2,938)
|
(2,261)
|
(3,780)
|
|||||||||||
Net investment in financing leases
|
$
|
27,767
|
$
|
31,130
|
$
|
26,797
|
$
|
30,369
|
$
|
970
|
$
|
761
|
|||||
Included $330 million and $413 million of initial direct costs on direct financing leases at December 31, 2012 and 2011, respectively.
|
(b)
|
Included pre-tax income of $81 million and $116 million and income tax of $32 million and $45 million during 2012 and 2011, respectively. Net investment credits recognized on leveraged leases during 2012 and 2011 were insignificant.
|
Total
|
Net rentals
|
||||
(In millions)
|
loans
|
receivable
|
|||
Due in
|
|||||
2013
|
$
|
56,668
|
$
|
8,700
|
|
2014
|
22,076
|
6,633
|
|||
2015
|
19,889
|
5,235
|
|||
2016
|
18,214
|
3,751
|
|||
2017
|
17,114
|
2,234
|
|||
2018 and later
|
48,593
|
5,236
|
|||
182,554
|
31,789
|
||||
Consumer revolving loans
|
58,911
|
-
|
|||
Total
|
$
|
241,465
|
$
|
31,789
|
|
December 31 (In millions)
|
2012
|
2011
|
|||
Commercial
|
|||||
CLL
|
|||||
Americas
|
$
|
72,517
|
$
|
80,505
|
|
Europe
|
37,035
|
36,899
|
|||
Asia
|
11,401
|
11,635
|
|||
Other
|
605
|
436
|
|||
Total CLL
|
121,558
|
129,475
|
|||
Energy Financial Services
|
4,851
|
5,912
|
|||
GECAS
|
10,915
|
11,901
|
|||
Other
|
486
|
1,282
|
|||
Total Commercial financing receivables
|
137,810
|
148,570
|
|||
Real Estate
|
|||||
Debt
|
19,746
|
24,501
|
|||
Business Properties(a)
|
1,200
|
8,248
|
|||
Total Real Estate financing receivables
|
20,946
|
32,749
|
|||
Consumer
|
|||||
Non-U.S. residential mortgages
|
33,451
|
35,550
|
|||
Non-U.S. installment and revolving credit
|
18,546
|
18,544
|
|||
U.S. installment and revolving credit
|
50,853
|
46,689
|
|||
Non-U.S. auto
|
4,260
|
5,691
|
|||
Other
|
8,070
|
7,244
|
|||
Total Consumer financing receivables
|
115,180
|
113,718
|
|||
Total financing receivables
|
273,936
|
295,037
|
|||
Less allowance for losses
|
(4,985)
|
(6,190)
|
|||
Total financing receivables – net
|
$
|
268,951
|
$
|
288,847
|
|
Balance at
|
Provision
|
Balance at
|
|||||||||||||||
January 1,
|
charged to
|
Gross
|
December 31,
|
||||||||||||||
(In millions)
|
2012
|
operations
|
Other
|
(a)
|
write-offs
|
(b)
|
Recoveries
|
(b)
|
2012
|
||||||||
Commercial
|
|||||||||||||||||
CLL
|
|||||||||||||||||
Americas
|
$
|
889
|
$
|
109
|
$
|
(51)
|
$
|
(568)
|
$
|
111
|
$
|
490
|
|||||
Europe
|
400
|
374
|
(3)
|
(390)
|
64
|
445
|
|||||||||||
Asia
|
157
|
37
|
(3)
|
(134)
|
23
|
80
|
|||||||||||
Other
|
4
|
13
|
(1)
|
(10)
|
–
|
6
|
|||||||||||
Total CLL
|
1,450
|
533
|
(58)
|
(1,102)
|
198
|
1,021
|
|||||||||||
Energy Financial Services
|
26
|
4
|
–
|
(24)
|
3
|
9
|
|||||||||||
GECAS
|
17
|
4
|
–
|
(13)
|
–
|
8
|
|||||||||||
Other
|
37
|
1
|
(20)
|
(17)
|
2
|
3
|
|||||||||||
Total Commercial
|
1,530
|
542
|
(78)
|
(1,156)
|
203
|
1,041
|
|||||||||||
Real Estate
|
|||||||||||||||||
Debt
|
949
|
29
|
(6)
|
(703)
|
10
|
279
|
|||||||||||
Business Properties(c)
|
140
|
43
|
(38)
|
(107)
|
3
|
41
|
|||||||||||
Total Real Estate
|
1,089
|
72
|
(44)
|
(810)
|
13
|
320
|
|||||||||||
Consumer
|
|||||||||||||||||
Non-U.S. residential
|
|||||||||||||||||
mortgages
|
546
|
111
|
8
|
(261)
|
76
|
480
|
|||||||||||
Non-U.S. installment
|
|||||||||||||||||
and revolving credit
|
717
|
350
|
26
|
(1,046)
|
576
|
623
|
|||||||||||
U.S. installment and
|
|||||||||||||||||
revolving credit
|
2,008
|
2,666
|
(24)
|
(2,906)
|
538
|
2,282
|
|||||||||||
Non-U.S. auto
|
101
|
18
|
(4)
|
(146)
|
98
|
67
|
|||||||||||
Other
|
199
|
132
|
18
|
(257)
|
80
|
172
|
|||||||||||
Total Consumer
|
3,571
|
3,277
|
24
|
(4,616)
|
1,368
|
3,624
|
|||||||||||
Total
|
$
|
6,190
|
$
|
3,891
|
$
|
(98)
|
$
|
(6,582)
|
$
|
1,584
|
$
|
4,985
|
|||||
(a)
|
Other primarily included transfers to held-for-sale and the effects of currency exchange.
|
(b)
|
Net write-offs (gross write-offs less recoveries) in certain portfolios may exceed the beginning allowance for losses as our revolving credit portfolios turn over more than once per year or, in all portfolios, can reflect losses that are incurred subsequent to the beginning of the fiscal year due to information becoming available during the current year, which may identify further deterioration on existing financing receivables.
|
(c)
|
In 2012, we completed the sale of a portion of our Business Properties portfolio.
|
Balance at
|
Provision
|
Balance at
|
|||||||||||||||
January 1,
|
charged to
|
Gross
|
December 31,
|
||||||||||||||
(In millions)
|
2011
|
operations
|
(a)
|
Other
|
(b)
|
write-offs
|
(c)
|
Recoveries
|
(c)
|
2011
|
|||||||
Commercial
|
|||||||||||||||||
CLL
|
|||||||||||||||||
Americas
|
$
|
1,288
|
$
|
281
|
$
|
(96)
|
$
|
(700)
|
$
|
116
|
$
|
889
|
|||||
Europe
|
429
|
195
|
(5)
|
(286)
|
67
|
400
|
|||||||||||
Asia
|
222
|
105
|
13
|
(214)
|
31
|
157
|
|||||||||||
Other
|
6
|
3
|
(3)
|
(2)
|
–
|
4
|
|||||||||||
Total CLL
|
1,945
|
584
|
(91)
|
(1,202)
|
214
|
1,450
|
|||||||||||
Energy Financial
|
|||||||||||||||||
Services
|
22
|
–
|
(1)
|
(4)
|
9
|
26
|
|||||||||||
GECAS
|
20
|
–
|
–
|
(3)
|
–
|
17
|
|||||||||||
Other
|
58
|
23
|
–
|
(47)
|
3
|
37
|
|||||||||||
Total Commercial
|
2,045
|
607
|
(92)
|
(1,256)
|
226
|
1,530
|
|||||||||||
Real Estate
|
|||||||||||||||||
Debt
|
1,292
|
242
|
2
|
(603)
|
16
|
949
|
|||||||||||
Business Properties
|
196
|
82
|
–
|
(144)
|
6
|
140
|
|||||||||||
Total Real Estate
|
1,488
|
324
|
2
|
(747)
|
22
|
1,089
|
|||||||||||
Consumer
|
|||||||||||||||||
Non-U.S. residential
|
|||||||||||||||||
mortgages
|
689
|
117
|
(13)
|
(296)
|
49
|
546
|
|||||||||||
Non-U.S. installment
|
|||||||||||||||||
and revolving credit
|
937
|
490
|
(30)
|
(1,257)
|
577
|
717
|
|||||||||||
U.S. installment and
|
|||||||||||||||||
revolving credit
|
2,333
|
2,241
|
1
|
(3,095)
|
528
|
2,008
|
|||||||||||
Non-U.S. auto
|
168
|
30
|
(4)
|
(216)
|
123
|
101
|
|||||||||||
Other
|
259
|
142
|
(20)
|
(272)
|
90
|
199
|
|||||||||||
Total Consumer
|
4,386
|
3,020
|
(66)
|
(5,136)
|
1,367
|
3,571
|
|||||||||||
Total
|
$
|
7,919
|
$
|
3,951
|
$
|
(156)
|
$
|
(7,139)
|
$
|
1,615
|
$
|
6,190
|
|||||
(a)
|
Included a provision of $77 million at Consumer related to the July 1, 2011 adoption of ASU 2011-02.
|
(b)
|
Other primarily included transfers to held-for-sale and the effects of currency exchange.
|
(c)
|
Net write-offs (gross write-offs less recoveries) in certain portfolios may exceed the beginning allowance for losses as our revolving credit portfolios turn over more than once per year or, in all portfolios, can reflect losses that are incurred subsequent to the beginning of the fiscal year due to information becoming available during the current year, which may identify further deterioration on existing financing receivables.
|
Balance at
|
Provision
|
Balance at
|
|||||||||||||||
January 1,
|
charged to
|
Gross
|
December 31,
|
||||||||||||||
(In millions)
|
2010(a)
|
operations
|
Other
|
(b)
|
write-offs
|
(c)
|
Recoveries
|
(c)
|
2010
|
||||||||
Commercial
|
|||||||||||||||||
CLL
|
|||||||||||||||||
Americas
|
$
|
1,246
|
$
|
1,059
|
$
|
(11)
|
$
|
(1,136)
|
$
|
130
|
$
|
1,288
|
|||||
Europe
|
575
|
269
|
(37)
|
(440)
|
62
|
429
|
|||||||||||
Asia
|
234
|
153
|
(6)
|
(181)
|
22
|
222
|
|||||||||||
Other
|
10
|
(2)
|
(1)
|
(1)
|
–
|
6
|
|||||||||||
Total CLL
|
2,065
|
1,479
|
(55)
|
(1,758)
|
214
|
1,945
|
|||||||||||
Energy Financial Services
|
28
|
65
|
–
|
(72)
|
1
|
22
|
|||||||||||
GECAS
|
104
|
12
|
–
|
(96)
|
–
|
20
|
|||||||||||
Other
|
34
|
33
|
–
|
(9)
|
–
|
58
|
|||||||||||
Total Commercial
|
2,231
|
1,589
|
(55)
|
(1,935)
|
215
|
2,045
|
|||||||||||
Real Estate
|
|||||||||||||||||
Debt
|
1,355
|
764
|
10
|
(838)
|
1
|
1,292
|
|||||||||||
Business Properties
|
181
|
146
|
(8)
|
(126)
|
3
|
196
|
|||||||||||
Total Real Estate
|
1,536
|
910
|
2
|
(964)
|
4
|
1,488
|
|||||||||||
Consumer
|
|||||||||||||||||
Non-U.S. residential
|
|||||||||||||||||
mortgages
|
825
|
165
|
(38)
|
(338)
|
75
|
689
|
|||||||||||
Non-U.S. installment
|
|||||||||||||||||
and revolving credit
|
1,106
|
1,047
|
(68)
|
(1,733)
|
585
|
937
|
|||||||||||
U.S. installment and
|
|||||||||||||||||
revolving credit
|
3,153
|
3,018
|
(6)
|
(4,300)
|
468
|
2,333
|
|||||||||||
Non-U.S. auto
|
292
|
91
|
(61)
|
(313)
|
159
|
168
|
|||||||||||
Other
|
292
|
265
|
5
|
(394)
|
91
|
259
|
|||||||||||
Total Consumer
|
5,668
|
4,586
|
(168)
|
(7,078)
|
1,378
|
4,386
|
|||||||||||
Total
|
$
|
9,435
|
$
|
7,085
|
$
|
(221)
|
$
|
(9,977)
|
$
|
1,597
|
$
|
7,919
|
|||||
(a)
|
Reflects the effects of our adoption of ASU 2009-16 & 17 on January 1, 2010.
|
(b)
|
Other primarily included the effects of currency exchange.
|
(c)
|
Net write-offs (gross write-offs less recoveries) in certain portfolios may exceed the beginning allowance for losses as our revolving credit portfolios turn over more than once per year or, in all portfolios, can reflect losses that are incurred subsequent to the beginning of the fiscal year due to information becoming available during the current year, which may identify further deterioration on existing financing receivables.
|
Depreciable
|
||||||||
lives-new
|
||||||||
December 31 (Dollars in millions)
|
(in years)
|
2012
|
2011
|
|||||
Original cost(b)
|
||||||||
Land and improvements, buildings, structures and
|
||||||||
related equipment
|
1-36
|
(a)
|
$
|
2,624
|
$
|
3,110
|
||
Equipment leased to others
|
||||||||
Aircraft
|
19-21
|
49,954
|
46,240
|
|||||
Vehicles
|
1-28
|
17,574
|
15,278
|
|||||
Railroad rolling stock
|
4-50
|
4,210
|
4,324
|
|||||
Construction and manufacturing
|
1-30
|
3,055
|
2,644
|
|||||
All other
|
3-27
|
3,427
|
3,438
|
|||||
Total
|
$
|
80,844
|
$
|
75,034
|
||||
Net carrying value(b)
|
||||||||
Land and improvements, buildings, structures and
|
||||||||
related equipment
|
$
|
1,074
|
$
|
1,499
|
||||
Equipment leased to others
|
||||||||
Aircraft(c)
|
36,231
|
34,271
|
||||||
Vehicles
|
9,263
|
8,772
|
||||||
Railroad rolling stock
|
2,746
|
2,853
|
||||||
Construction and manufacturing
|
2,069
|
1,670
|
||||||
All other
|
2,290
|
2,354
|
||||||
Total
|
$
|
53,673
|
$
|
51,419
|
||||
(a)
|
Depreciable lives exclude land.
|
(b)
|
Included $1,467 million and $1,570 million of original cost of assets leased to GE with accumulated amortization of $452 million and $445 million at December 31, 2012 and 2011, respectively.
|
(c)
|
GECAS recognized impairment losses of $242 million in 2012 and $301 million in 2011 recorded in the caption “Depreciation and amortization” in the Statement of Earnings to reflect adjustments to fair value based on an evaluation of average current market values (obtained from third parties) of similar type and age aircraft, which are adjusted for the attributes of the specific aircraft under lease.
|
(In millions)
|
||
Due in
|
||
2013
|
$
|
7,507
|
2014
|
6,168
|
|
2015
|
4,946
|
|
2016
|
3,863
|
|
2017
|
3,000
|
|
2018 and later
|
8,286
|
|
Total
|
$
|
33,770
|
December 31 (In millions)
|
2012
|
2011
|
|||
Goodwill
|
$
|
27,304
|
$
|
27,230
|
|
Other intangible assets
|
|||||
Intangible assets subject to amortization
|
$
|
1,294
|
$
|
1,546
|
|
2012
|
2011
|
||||||||||||||||||||||
Dispositions,
|
Dispositions,
|
||||||||||||||||||||||
currency
|
currency
|
||||||||||||||||||||||
Balance at
|
exchange
|
Balance at
|
Balance at
|
exchange
|
Balance at
|
||||||||||||||||||
(In millions)
|
January 1
|
Acquisitions
|
and other
|
December 31
|
January 1
|
Acquisitions
|
and other
|
December 31
|
|||||||||||||||
CLL
|
$
|
13,745
|
$
|
–
|
|
$
|
(19)
|
$
|
13,726
|
$
|
13,893
|
$
|
6
|
$
|
(154)
|
$
|
13,745
|
||||||
Consumer
|
10,775
|
–
|
168
|
10,943
|
10,817
|
–
|
(42)
|
10,775
|
|||||||||||||||
Real Estate
|
1,001
|
–
|
(75)
|
926
|
1,089
|
–
|
(88)
|
1,001
|
|||||||||||||||
Energy Financial Services
|
1,562
|
–
|
–
|
1,562
|
1,562
|
–
|
–
|
1,562
|
|||||||||||||||
GECAS
|
147
|
–
|
–
|
147
|
147
|
–
|
–
|
147
|
|||||||||||||||
Total
|
$
|
27,230
|
$
|
–
|
$
|
74
|
$
|
27,304
|
$
|
27,508
|
$
|
6
|
$
|
(284)
|
$
|
27,230
|
|||||||
2012
|
2011
|
||||||||||||||||
Gross
|
Gross
|
||||||||||||||||
carrying
|
Accumulated
|
carrying
|
Accumulated
|
||||||||||||||
December 31 (In millions)
|
amount
|
amortization
|
Net
|
amount
|
amortization
|
Net
|
|||||||||||
Customer-related
|
$
|
1,227
|
$
|
(808)
|
$
|
419
|
$
|
1,186
|
$
|
(697)
|
$
|
489
|
|||||
Patents, licenses and trademarks
|
191
|
(160)
|
31
|
250
|
(208)
|
42
|
|||||||||||
Capitalized software
|
2,126
|
(1,681)
|
445
|
2,048
|
(1,597)
|
451
|
|||||||||||
Lease valuations
|
1,163
|
(792)
|
371
|
1,470
|
(944)
|
526
|
|||||||||||
Present value of future profits (a)
|
530
|
(530)
|
-
|
491
|
(491)
|
-
|
|||||||||||
All other
|
283
|
(255)
|
28
|
327
|
(289)
|
38
|
|||||||||||
Total
|
$
|
5,520
|
$
|
(4,226)
|
$
|
1,294
|
$
|
5,772
|
$
|
(4,226)
|
$
|
1,546
|
|||||
(a)
|
Balances at December 31, 2012 and 2011 reflect adjustments of $353 million and $391 million, respectively, to the present value of future profits in our run-off insurance operations to reflect the effects that would have been recognized had the related unrealized investment securities holding gains and losses actually been realized in accordance with ASC 320-10-S99-2.
|
December 31 (In millions)
|
2012
|
2011
|
|||
Investments
|
|||||
Real estate(a)(b)
|
$
|
25,154
|
$
|
28,255
|
|
Associated companies
|
19,119
|
23,589
|
|||
Assets held for sale(c)
|
4,205
|
4,525
|
|||
Cost method(b)
|
1,665
|
1,882
|
|||
Other
|
1,446
|
1,722
|
|||
51,589
|
59,973
|
||||
Derivative instruments
|
3,557
|
9,671
|
|||
Advances to suppliers
|
1,813
|
1,560
|
|||
Deferred borrowing costs(d)
|
940
|
1,327
|
|||
Deferred acquisition costs(e)
|
46
|
55
|
|||
Other
|
4,272
|
3,026
|
|||
Total
|
$
|
62,217
|
$
|
75,612
|
|
(a)
|
Our investment in real estate consisted principally of two categories: real estate held for investment and equity method investments. Both categories contained a wide range of properties including the following at December 31, 2012: office buildings (48%), apartment buildings (14%), retail facilities (9%), franchise properties (9%), industrial properties (8%) and other (12%). At December 31, 2012, investments were located in the Americas (45%), Europe (28%) and Asia (27%).
|
(b)
|
The fair value of and unrealized loss on cost method investments in a continuous loss position for less than 12 months at December 31, 2012, were $142 million and $37 million, respectively. The fair value of and unrealized loss on cost method investments in a continuous loss position for 12 months or more at December 31, 2012, were $2 million and an insignificant amount, respectively. The fair value of and unrealized loss on cost method investments in a continuous loss position for less than 12 months at December 31, 2011, were $425 million and $61 million, respectively. The fair value of and unrealized loss on cost method investments in a continuous loss position for 12 months or more at December 31, 2011, were $65 million and $3 million, respectively.
|
(c)
|
Assets were classified as held for sale on the date a decision was made to dispose of them through sale or other means. At December 31, 2012 and 2011, such assets consisted primarily of loans, aircraft, equipment and real estate properties, and were accounted for at the lower of carrying amount or estimated fair value less costs to sell. These amounts are net of valuation allowances of $200 million and $122 million at December 31, 2012 and 2011, respectively.
|
(d)
|
Included $329 million at December 31, 2011 of unamortized fees related to our participation in the Temporary Liquidity Guarantee Program (TLGP). At December 31, 2012, our debt under TLGP was fully repaid.
|
(e)
|
Balances at December 31, 2012 and 2011 reflect adjustments of $764 million and $810 million, respectively, to deferred acquisition costs in our run-off insurance operations to reflect the effects that would have been recognized had the related unrealized investment securities holding gains and losses actually been realized in accordance with ASC 320-10-S99-2.
|
Short-term Borrowings
|
2012
|
2011
|
||||||||||
Average
|
Average
|
|||||||||||
December 31 (Dollars in millions)
|
Amount
|
rate(a)
|
Amount
|
rate(a)
|
||||||||
Commercial paper
|
||||||||||||
U.S.
|
$
|
33,686
|
0.22
|
%
|
$
|
33,591
|
0.23
|
%
|
||||
Non-U.S.
|
9,370
|
0.92
|
10,569
|
1.67
|
||||||||
Current portion of long-term
|
||||||||||||
borrowings(b)(c)(d)(e)
|
44,264
|
2.85
|
82,650
|
2.72
|
||||||||
GE Interest Plus notes(f)
|
8,189
|
1.20
|
8,474
|
1.32
|
||||||||
Other(d)
|
431
|
1,049
|
||||||||||
Total short-term borrowings
|
$
|
95,940
|
$
|
136,333
|
||||||||
Long-term Borrowings
|
2012
|
2011
|
||||||||||
Average
|
Average
|
|||||||||||
December 31 (Dollars in millions)
|
Maturities
|
Amount
|
rate(a)
|
Amount
|
rate(a)
|
|||||||
Senior unsecured notes(c)
|
2014-2055
|
$
|
199,646
|
2.95
|
%
|
$
|
210,154
|
3.49
|
%
|
|||
Subordinated notes(e)
|
2014-2037
|
4,965
|
2.92
|
4,862
|
3.42
|
|||||||
Subordinated debentures(g)(h)
|
2066-2067
|
7,286
|
5.78
|
7,215
|
6.66
|
|||||||
Other(d)
|
12,879
|
12,160
|
||||||||||
Total long-term borrowings
|
$
|
224,776
|
$
|
234,391
|
||||||||
Non-recourse borrowings of consolidated
|
||||||||||||
securitization entities (i)
|
2013-2019
|
$
|
30,123
|
1.12
|
$
|
29,258
|
1.40
|
|||||
Bank deposits(j)
|
$
|
46,461
|
$
|
43,115
|
||||||||
Total borrowings and bank deposits
|
$
|
397,300
|
$
|
443,097
|
||||||||
(a)
|
Based on year-end balances and year-end local currency effective interest rates, including the effects from hedging.
|
(b)
|
GECC had issued and outstanding $35,040 million of senior, unsecured debt that was guaranteed by the Federal Deposit Insurance Corporation (FDIC) under the Temporary Liquidity Guarantee Program at December 31, 2011. No such debt was outstanding at December 31, 2012.
|
(c)
|
Included in total long-term borrowings were $604 million and $1,845 million of obligations to holders of GICs at December 31, 2012 and 2011, respectively. These obligations included conditions under which certain GIC holders could require immediate repayment of their investment should the long-term credit ratings of GECC fall below AA-/Aa3. Following the April 3, 2012 Moody’s downgrade of GECC’s long-term credit rating to A1, substantially all of these GICs became redeemable by their holders. In 2012, holders of $386 million in principal amount of GICs redeemed their holdings and GECC made related cash payments. The remaining outstanding GICs will continue to be subject to their scheduled maturities and individual terms, which may include provisions permitting redemption upon a downgrade of one or more of GECC’s ratings, among other things.
|
(d)
|
Included $9,757 million and $8,538 million of funding secured by real estate, aircraft and other collateral at December 31, 2012 and 2011, respectively, of which $3,294 million and $2,983 million is non-recourse to GECC at December 31, 2012 and 2011, respectively.
|
(e)
|
Included $300 million and $417 million of subordinated notes guaranteed by GE at December 31, 2012 and 2011, respectively, of which $117 million was included in current portion of long-term borrowings at December 31, 2011.
|
(f)
|
Entirely variable denomination floating-rate demand notes.
|
(g)
|
Subordinated debentures receive rating agency equity credit and were hedged at issuance to the U.S. dollar equivalent of $7,725 million.
|
(h)
|
Includes $2,889 million of subordinated debentures, which constitute the sole assets of wholly-owned trusts who have issued trust preferred securities. Obligations associated with these trusts are unconditionally guaranteed by GECC.
|
(i)
|
Included at December 31, 2012 and 2011 were $9,095 million and $10,714 million of current portion of long-term borrowings, respectively, and $21,028 million and $18,544 million of long-term borrowings, respectively. See Note 17.
|
(j)
|
Included $16,157 million and $16,281 million of deposits in non-U.S. banks at December 31, 2012 and 2011, respectively, and $17,291 million and $17,201 million of certificates of deposits with maturities greater than one year at December 31, 2012 and 2011, respectively.
|
(In millions)
|
2013
|
2014
|
2015
|
2016
|
2017
|
|||||||||
$
|
44,264
|
(a)
|
$
|
38,783
|
$
|
36,252
|
$
|
23,047
|
$
|
24,775
|
||||
(a)
|
Fixed and floating rate notes of $914 million contain put options with exercise dates in 2013, and which have final maturity beyond 2017.
|
December 31 (In millions)
|
2012
|
2011
|
|||
Investment contracts
|
$
|
3,321
|
$
|
3,493
|
|
Guaranteed investment contracts
|
1,644
|
4,226
|
|||
Total investment contracts
|
4,965
|
7,719
|
|||
Life insurance benefits(a)
|
20,427
|
19,257
|
|||
Other(b)
|
3,304
|
3,222
|
|||
Total
|
$
|
28,696
|
$
|
30,198
|
|
(a)
|
(b)
|
Substantially all unpaid claims and claims adjustment expenses and unearned premiums.
|
(In millions)
|
2012
|
2011
|
2010
|
|||||
Current tax expense (benefit)
|
$
|
1,368
|
$
|
775
|
$
|
(2,292)
|
||
Deferred tax expense (benefit) from temporary differences
|
(877)
|
124
|
1,307
|
|||||
Total
|
$
|
491
|
$
|
899
|
$
|
(985)
|
||
December 31 (In millions)
|
2012
|
2011
|
|||
Unrecognized tax benefits
|
$
|
3,106
|
$
|
2,932
|
|
Portion that, if recognized, would reduce tax expense and effective tax rate(a)
|
2,253
|
2,209
|
|||
Accrued interest on unrecognized tax benefits
|
559
|
579
|
|||
Accrued penalties on unrecognized tax benefits
|
101
|
65
|
|||
Reasonably possible reduction to the balance of unrecognized
|
|||||
tax benefits in succeeding 12 months
|
0-400
|
0-600
|
|||
Portion that, if recognized, would reduce tax expense and effective tax rate(a)
|
0-350
|
0-150
|
|||
(a)
|
Some portion of such reduction might be reported as discontinued operations.
|
(In millions)
|
2012
|
2011
|
|||
Balance at January 1
|
$
|
2,932
|
$
|
3,904
|
|
Additions for tax positions of the current year
|
181
|
124
|
|||
Reductions for tax positions of the current year
|
(9)
|
(13)
|
|||
Additions for tax positions of prior years
|
522
|
423
|
|||
Reductions for tax positions of prior years
|
(377)
|
(1,471)
|
|||
Settlements with tax authorities
|
(141)
|
(30)
|
|||
Expiration of the statute of limitations
|
(2)
|
(5)
|
|||
Balance at December 31
|
$
|
3,106
|
$
|
2,932
|
|
2012
|
2011
|
2010
|
|||||||
U.S. federal statutory income tax rate
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
|||
Increase (reduction) in rate resulting from
|
|||||||||
Tax on global activities including exports
|
(18.9)
|
(15.0)
|
(54.8)
|
||||||
U.S. business credits(a)
|
(4.3)
|
(4.7)
|
(13.5)
|
||||||
Business Property disposition
|
(4.2)
|
-
|
-
|
||||||
All other - net
|
(1.4)
|
(3.5)
|
(12.5)
|
||||||
(28.8)
|
(23.2)
|
(80.8)
|
|||||||
Actual income tax rate
|
6.2
|
%
|
11.8
|
%
|
(45.8)
|
%
|
|||
(a)
|
U.S. general business credits, primarily the credit for energy produced from renewable sources, the advanced energy project credit and the low-income housing credit.
|
December 31 (In millions)
|
2012
|
2011
|
|||
Assets
|
|||||
Allowance for losses
|
$
|
(1,964)
|
$
|
(2,949)
|
|
Non-U.S. loss carryforwards(a)
|
(3,115)
|
(2,861)
|
|||
Investment in global subsidiaries
|
(1,451)
|
-
|
|||
Net unrealized losses on securities
|
-
|
(64)
|
|||
Cash flow hedges
|
-
|
(104)
|
|||
Other - net
|
(5,655)
|
(4,941)
|
|||
Total deferred income tax assets
|
(12,185)
|
(10,919)
|
|||
Liabilities
|
|||||
Financing leases
|
4,506
|
6,718
|
|||
Operating leases
|
5,939
|
5,030
|
|||
Intangible assets
|
1,657
|
1,689
|
|||
Investment in global subsidiaries
|
-
|
85
|
|||
Net unrealized gains on securities
|
321
|
-
|
|||
Cash flow hedges
|
119
|
-
|
|||
Other - net
|
5,514
|
4,449
|
|||
Total deferred income tax liabilities
|
18,056
|
17,971
|
|||
Net deferred income tax liability
|
$
|
5,871
|
$
|
7,052
|
|
(a)
|
Net of valuation allowances of $628 million and $613 million for 2012 and 2011, respectively. Of the net deferred tax asset as of December 31, 2012, of $3,115 million, $76 million relates to net operating loss carryforwards that expire in various years ending from December 31, 2013, through December 31, 2015; $178 million relates to net operating losses that expire in various years ending from December 31, 2016 through December 31, 2027 and $2,861 million relates to net operating loss carryforwards that may be carried forward indefinitely.
|
(In millions)
|
2012
|
2011
|
2010
|
|||||
Preferred stock issued
|
$
|
-
|
$
|
-
|
$
|
-
|
||
Common stock issued
|
$
|
-
|
$
|
-
|
$
|
-
|
||
Accumulated other comprehensive income
|
||||||||
Balance at January 1(a)
|
$
|
(2,096)
|
$
|
(3,711)
|
$
|
(1,532)
|
||
Other comprehensive income before reclassifications
|
800
|
76
|
(3,306)
|
|||||
Reclassifications from other comprehensive income
|
356
|
1,539
|
1,127
|
|||||
Other comprehensive income, net, attributable to GECC
|
1,156
|
1,615
|
(2,179)
|
|||||
Balance at December 31
|
$
|
(940)
|
$
|
(2,096)
|
$
|
(3,711)
|
||
Additional paid-in capital
|
||||||||
Balance at January 1
|
$
|
27,628
|
$
|
27,627
|
$
|
27,592
|
||
Contributions and other
|
3,958
|
1
|
35
|
|||||
Balance at December 31
|
$
|
31,586
|
$
|
27,628
|
$
|
27,627
|
||
Retained earnings
|
||||||||
Balance at January 1(b)
|
$
|
51,578
|
$
|
45,068
|
$
|
42,863
|
||
Net earnings
|
6,215
|
6,510
|
2,155
|
|||||
Dividends and other(c)
|
(6,549)
|
–
|
50
|
|||||
Balance at December 31
|
$
|
51,244
|
$
|
51,578
|
$
|
45,068
|
||
Total equity
|
||||||||
GECC shareowners' equity balance at December 31
|
$
|
81,890
|
$
|
77,110
|
$
|
68,984
|
||
Noncontrolling interests balance at December 31
|
707
|
690
|
1,164
|
|||||
Total equity balance at December 31
|
$
|
82,597
|
$
|
77,800
|
$
|
70,148
|
||
(a)
|
The 2010 opening balance was adjusted as of January 1, 2010, for the cumulative effect of changes in accounting principles of $265 million related to the adoption of ASU 2009-16 & 17.
|
(b)
|
The 2010 opening balance was adjusted as of January 1, 2010, for the cumulative effect of changes in accounting principles of $1,645 million related to the adoption of ASU 2009-16 & 17.
|
(c)
|
Included the effects of accretion of redeemable securities to their redemption value of $38 million in 2010.
|
(In millions)
|
2012
|
2011
|
2010
|
|||||
|
||||||||
Investment securities
|
||||||||
Balance at January 1
|
$
|
(33)
|
$
|
(639)
|
$
|
(653)
|
||
OCI before reclassifications – net of deferred taxes of $386, $341 and $72(a)
|
685
|
575
|
(45)
|
|||||
Reclassifications from OCI – net of deferred taxes of $12, $1 and $32
|
22
|
31
|
59
|
|||||
Other comprehensive income(b)
|
707
|
606
|
14
|
|||||
Less: OCI attributable to noncontrolling interests
|
1
|
–
|
–
|
|||||
Balance at December 31
|
$
|
673
|
$
|
(33)
|
$
|
(639)
|
||
Currency translation adjustments
|
||||||||
Balance at January 1
|
$
|
(399)
|
$
|
(1,411)
|
$
|
1,324
|
||
OCI before reclassifications –net of deferred taxes of $(261), $(705) and $2,165
|
411
|
603
|
(2,787)
|
|||||
Reclassifications from OCI – net of deferred taxes of $55, $357 and $22
|
(131)
|
381
|
58
|
|||||
Other comprehensive income(b)
|
280
|
984
|
(2,729)
|
|||||
Less: OCI attributable to noncontrolling interests
|
12
|
(28)
|
6
|
|||||
Balance at December 31
|
$
|
(131)
|
$
|
(399)
|
$
|
(1,411)
|
||
Cash flow hedges
|
||||||||
Balance at January 1
|
$
|
(1,101)
|
$
|
(1,281)
|
$
|
(1,769)
|
||
OCI before reclassifications – net of deferred taxes of $203, $248 and $(498)
|
(78)
|
(910)
|
(437)
|
|||||
Reclassifications from OCI – net of deferred taxes of $(75), $204 and $720
|
432
|
1,104
|
976
|
|||||
Other comprehensive income(b)
|
354
|
194
|
539
|
|||||
Less: OCI attributable to noncontrolling interests
|
(1)
|
14
|
51
|
|||||
Balance at December 31
|
$
|
(746)
|
$
|
(1,101)
|
$
|
(1,281)
|
||
Benefit plans
|
||||||||
Balance at January 1
|
$
|
(563)
|
$
|
(380)
|
$
|
(434)
|
||
Prior service credit (cost) – net of deferred taxes of $0, $(3) and $5
|
–
|
(6)
|
10
|
|||||
Net actuarial gain (loss) – net of deferred taxes of $(86), $(104) and $5
|
(206)
|
(198)
|
10
|
|||||
Prior service cost amortization – net of deferred taxes of $0, $0 and $0
|
–
|
(2)
|
–
|
|||||
Net actuarial loss amortization – net of deferred taxes of $10, $11 and $17
|
33
|
23
|
34
|
|||||
Other comprehensive income(b)
|
(173)
|
(183)
|
54
|
|||||
Less: OCI attributable to noncontrolling interests
|
–
|
–
|
–
|
|||||
Balance at December 31
|
$
|
(736)
|
$
|
(563)
|
$
|
(380)
|
||
Accumulated other comprehensive income at December 31
|
$
|
(940)
|
$
|
(2,096)
|
$
|
(3,711)
|
||
(b)
|
Total other comprehensive income was $1,168 million, $1,601 million and $(2,122) million in 2012, 2011 and 2010, respectively.
|
December 31 (In millions)
|
2012
|
2011
|
|||
Noncontrolling interests in consolidated affiliates(a)
|
$
|
707
|
$
|
690
|
|
(a)
|
Consisted of a number of individually insignificant noncontrolling interests in partnerships and consolidated affiliates.
|
(In millions)
|
2012
|
2011
|
2010
|
|||||
Beginning balance
|
$
|
690
|
$
|
1,164
|
$
|
2,048
|
||
Net earnings
|
63
|
127
|
16
|
|||||
Dividends
|
(19)
|
(20)
|
(7)
|
|||||
Dispositions(a)
|
–
|
(586)
|
(979)
|
|||||
AOCI and other
|
(27)
|
5
|
86
|
|||||
Ending balance
|
$
|
707
|
$
|
690
|
$
|
1,164
|
||
(a)
|
(In millions)
|
2012
|
2011
|
2010
|
||||||
Interest on loans
|
$
|
19,074
|
$
|
20,056
|
$
|
20,810
|
|||
Equipment leased to others
|
10,855
|
11,343
|
11,116
|
||||||
Fees
|
4,732
|
4,698
|
4,734
|
||||||
Investment income
|
2,630
|
2,500
|
2,185
|
||||||
Financing leases
|
1,888
|
2,378
|
2,749
|
||||||
Associated companies(a)
|
1,538
|
2,337
|
2,035
|
||||||
Premiums earned by insurance activities
|
1,714
|
1,905
|
2,014
|
||||||
Real estate investments
|
1,709
|
1,625
|
1,240
|
||||||
Other items
|
1,780
|
2,078
|
2,440
|
||||||
Total
|
$
|
45,920
|
$
|
48,920
|
$
|
49,323
|
|||
(a)
|
During 2011, we sold an 18.6% equity interest in Garanti Bank and recorded a pre-tax gain of $690 million. During 2012, we sold our remaining equity interest in Garanti Bank, which was classified as an available-for-sale security.
|
(In millions)
|
2012
|
2011
|
2010
|
|||||
Equipment for sublease
|
$
|
151
|
$
|
159
|
$
|
184
|
||
Other rental expense
|
410
|
456
|
453
|
|||||
(In millions)
|
|||||||||||||
2013
|
2014
|
2015
|
2016
|
2017
|
|||||||||
$
|
318
|
$
|
245
|
$
|
201
|
$
|
164
|
$
|
136
|
||||
Netting
|
||||||||||||||
(In millions)
|
Level 1
|
(a)
|
Level 2
|
(a)
|
Level 3
|
(b)
|
adjustment
|
(c)
|
Net balance
|
|||||
December 31, 2012
|
||||||||||||||
Assets
|
||||||||||||||
Investment securities
|
||||||||||||||
Debt
|
||||||||||||||
U.S. corporate
|
$
|
–
|
$
|
20,580
|
$
|
3,552
|
$
|
–
|
$
|
24,132
|
||||
State and municipal
|
–
|
4,469
|
77
|
–
|
4,546
|
|||||||||
Residential mortgage-backed
|
–
|
2,162
|
100
|
–
|
2,262
|
|||||||||
Commercial mortgage-backed
|
–
|
3,088
|
6
|
–
|
3,094
|
|||||||||
Asset-backed(d)
|
–
|
715
|
5,023
|
–
|
5,738
|
|||||||||
Corporate - non-U.S.
|
71
|
1,132
|
1,212
|
–
|
2,415
|
|||||||||
Government - non-U.S.
|
702
|
1,019
|
42
|
–
|
1,763
|
|||||||||
U.S. government and federal agency
|
–
|
3,288
|
277
|
–
|
3,565
|
|||||||||
Retained interests
|
–
|
–
|
83
|
–
|
83
|
|||||||||
Equity
|
||||||||||||||
Available-for-sale
|
569
|
14
|
13
|
–
|
596
|
|||||||||
Trading
|
245
|
–
|
–
|
–
|
245
|
|||||||||
Derivatives(d)
|
–
|
10,934
|
280
|
(7,657)
|
3,557
|
|||||||||
Other(e)
|
–
|
–
|
432
|
–
|
432
|
|||||||||
Total
|
$
|
1,587
|
$
|
47,401
|
$
|
11,097
|
$
|
(7,657)
|
$
|
52,428
|
||||
Liabilities
|
||||||||||||||
Derivatives
|
$
|
–
|
$
|
3,040
|
$
|
20
|
$
|
(2,908)
|
$
|
152
|
||||
Other
|
–
|
23
|
–
|
–
|
23
|
|||||||||
Total
|
$
|
–
|
$
|
3,063
|
$
|
20
|
$
|
(2,908)
|
$
|
175
|
||||
December 31, 2011
|
||||||||||||||
Assets
|
||||||||||||||
Investment securities
|
||||||||||||||
Debt
|
||||||||||||||
U.S. corporate
|
$
|
–
|
$
|
20,535
|
$
|
3,235
|
$
|
–
|
$
|
23,770
|
||||
State and municipal
|
–
|
3,157
|
77
|
–
|
3,234
|
|||||||||
Residential mortgage-backed
|
–
|
2,568
|
41
|
–
|
2,609
|
|||||||||
Commercial mortgage-backed
|
–
|
2,824
|
4
|
–
|
2,828
|
|||||||||
Asset-backed
|
–
|
930
|
4,040
|
–
|
4,970
|
|||||||||
Corporate - non-U.S.
|
71
|
1,058
|
1,204
|
–
|
2,333
|
|||||||||
Government - non-U.S.
|
1,003
|
1,444
|
84
|
–
|
2,531
|
|||||||||
U.S. government and federal agency
|
–
|
3,805
|
253
|
–
|
4,058
|
|||||||||
Retained interests
|
–
|
–
|
35
|
–
|
35
|
|||||||||
Equity
|
||||||||||||||
Available-for-sale
|
715
|
18
|
17
|
–
|
750
|
|||||||||
Trading
|
241
|
–
|
–
|
–
|
241
|
|||||||||
Derivatives(d)
|
–
|
14,830
|
160
|
(5,319)
|
9,671
|
|||||||||
Other(e)
|
–
|
–
|
388
|
–
|
388
|
|||||||||
Total
|
$
|
2,030
|
$
|
51,169
|
$
|
9,538
|
$
|
(5,319)
|
$
|
57,418
|
||||
Liabilities
|
||||||||||||||
Derivatives
|
$
|
–
|
$
|
4,503
|
$
|
20
|
$
|
(4,025)
|
$
|
498
|
||||
Other
|
–
|
25
|
–
|
–
|
25
|
|||||||||
Total
|
$
|
–
|
$
|
4,528
|
$
|
20
|
$
|
(4,025)
|
$
|
523
|
||||
(a)
|
There were no securities transferred between Level 1 and Level 2 during 2012.
|
(b)
|
The netting of derivative receivables and payables (including the effects of any collateral posted or received) is permitted when a legally enforceable master netting agreement exists.
|
(c)
|
Includes investments in our CLL business in asset-backed securities collateralized by senior secured loans of high quality, middle-market companies in a variety of industries.
|
(d)
|
The fair value of derivatives included an adjustment for non-performance risk. The cumulative adjustment was a gain (loss) of $(15) million at December 31, 2012 and $(11) million at December 31, 2011. See Note 15 for additional information on the composition of our derivative portfolio.
|
(e)
|
Included private equity investments and loans designated under the fair value option.
|
Net
|
|||||||||||||||||||||||||||||||
(In millions)
|
change in
|
||||||||||||||||||||||||||||||
Net realized/
|
unrealized
|
||||||||||||||||||||||||||||||
Net
|
unrealized
|
gains
|
|||||||||||||||||||||||||||||
realized/
|
gains (losses)
|
(losses)
|
|||||||||||||||||||||||||||||
unrealized
|
included in
|
relating to
|
|||||||||||||||||||||||||||||
gains
|
accumulated
|
instruments
|
|||||||||||||||||||||||||||||
Balance at
|
(losses)
|
other
|
Transfers
|
Transfers
|
Balance at
|
still held at
|
|||||||||||||||||||||||||
January 1,
|
included in
|
comprehensive
|
into
|
out of
|
December 31,
|
December 31,
|
|||||||||||||||||||||||||
2012
|
earnings
|
(a)
|
income
|
Purchases
|
Sales
|
Settlements
|
Level 3
|
(b)
|
Level 3
|
(b)
|
2012
|
2012
|
(c)
|
||||||||||||||||||
Investment securities
|
|||||||||||||||||||||||||||||||
Debt
|
|||||||||||||||||||||||||||||||
U.S. corporate
|
$
|
3,235
|
$
|
66
|
$
|
32
|
$
|
444
|
$
|
(214)
|
$
|
(110)
|
$
|
299
|
$
|
(200)
|
$
|
3,552
|
$
|
–
|
|||||||||||
State and municipal
|
77
|
–
|
10
|
16
|
–
|
(1)
|
78
|
(103)
|
77
|
–
|
|||||||||||||||||||||
Residential
|
|||||||||||||||||||||||||||||||
mortgage-backed
|
41
|
(3)
|
1
|
6
|
–
|
(3)
|
135
|
(77)
|
100
|
–
|
|||||||||||||||||||||
Commercial
|
|||||||||||||||||||||||||||||||
mortgage-backed
|
4
|
–
|
(1)
|
–
|
–
|
–
|
6
|
(3)
|
6
|
–
|
|||||||||||||||||||||
Asset-backed
|
4,040
|
1
|
(25)
|
1,490
|
(502)
|
–
|
25
|
(6)
|
5,023
|
–
|
|||||||||||||||||||||
Corporate – non-U.S.
|
1,204
|
(11)
|
19
|
335
|
(51)
|
(172)
|
24
|
(136)
|
1,212
|
–
|
|||||||||||||||||||||
Government
|
|||||||||||||||||||||||||||||||
– non-U.S.
|
84
|
(33)
|
38
|
65
|
(72)
|
(40)
|
–
|
–
|
42
|
–
|
|||||||||||||||||||||
U.S. government and
|
|||||||||||||||||||||||||||||||
federal agency
|
253
|
–
|
24
|
–
|
–
|
–
|
–
|
–
|
277
|
–
|
|||||||||||||||||||||
Retained interests
|
35
|
(1)
|
(3)
|
16
|
(6)
|
(12)
|
54
|
–
|
83
|
–
|
|||||||||||||||||||||
Equity
|
|||||||||||||||||||||||||||||||
Available-for-sale
|
17
|
–
|
(1)
|
3
|
(3)
|
(1)
|
2
|
(4)
|
13
|
–
|
|||||||||||||||||||||
Trading
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||||||||
Derivatives(d)(e)
|
141
|
(11)
|
(1)
|
(2)
|
–
|
(39)
|
178
|
(4)
|
262
|
160
|
|||||||||||||||||||||
Other
|
388
|
2
|
2
|
152
|
(70)
|
–
|
–
|
(42)
|
432
|
(1)
|
|||||||||||||||||||||
Total
|
$
|
9,519
|
$
|
10
|
$
|
95
|
$
|
2,525
|
$
|
(918)
|
$
|
(378)
|
$
|
801
|
$
|
(575)
|
$
|
11,079
|
$
|
159
|
|||||||||||
(a)
|
Earnings effects are primarily included in the “Revenues from services” and “Interest” captions in the Statement of Earnings.
|
(b)
|
Transfers in and out of Level 3 are considered to occur at the beginning of the period. Transfers out of Level 3 were a result of increased use of quotes from independent pricing vendors based on recent trading activity.
|
(c)
|
Represented the amount of unrealized gains or losses for the period included in earnings.
|
(d)
|
Represented derivative assets net of derivative liabilities and included cash accruals of $2 million not reflected in the fair value hierarchy table.
|
(e)
|
Gains (losses) included in net realized/unrealized gains (losses) included in earnings were offset by the earnings effects from the underlying items that were economically hedged. See Note 15.
|
Net
|
|||||||||||||||||||||||||||||||
(In millions)
|
change in
|
||||||||||||||||||||||||||||||
Net realized/
|
unrealized
|
||||||||||||||||||||||||||||||
Net
|
unrealized
|
gains
|
|||||||||||||||||||||||||||||
realized/
|
gains (losses)
|
(losses)
|
|||||||||||||||||||||||||||||
unrealized
|
included in
|
relating to
|
|||||||||||||||||||||||||||||
gains
|
accumulated
|
instruments
|
|||||||||||||||||||||||||||||
Balance at
|
(losses)
|
other
|
Transfers
|
Transfers
|
Balance at
|
still held at
|
|||||||||||||||||||||||||
January 1,
|
included in
|
comprehensive
|
into
|
out of
|
December 31,
|
December 31,
|
|||||||||||||||||||||||||
2011
|
earnings
|
(a)
|
income
|
Purchases
|
Sales
|
Settlements
|
Level 3
|
(b)
|
Level 3
|
(b)
|
2011
|
2011
|
(c)
|
||||||||||||||||||
Investment securities
|
|||||||||||||||||||||||||||||||
Debt
|
|||||||||||||||||||||||||||||||
U.S. corporate
|
$
|
3,198
|
$
|
78
|
$
|
(157)
|
$
|
235
|
$
|
(182)
|
$
|
(112)
|
$
|
182
|
$
|
(7)
|
$
|
3,235
|
$
|
–
|
|||||||||||
State and municipal
|
225
|
–
|
–
|
12
|
–
|
(8)
|
–
|
(152)
|
77
|
–
|
|||||||||||||||||||||
Residential
|
|||||||||||||||||||||||||||||||
mortgage-backed
|
66
|
(3)
|
1
|
2
|
(5)
|
(1)
|
71
|
(90)
|
41
|
–
|
|||||||||||||||||||||
Commercial
|
|||||||||||||||||||||||||||||||
mortgage-backed
|
49
|
–
|
–
|
6
|
–
|
(4)
|
3
|
(50)
|
4
|
–
|
|||||||||||||||||||||
Asset-backed
|
2,540
|
(10)
|
61
|
2,157
|
(185)
|
(11)
|
1
|
(513)
|
4,040
|
–
|
|||||||||||||||||||||
Corporate – non-U.S.
|
1,486
|
(47)
|
(91)
|
25
|
(55)
|
(118)
|
85
|
(81)
|
1,204
|
–
|
|||||||||||||||||||||
Government
|
|||||||||||||||||||||||||||||||
– non-U.S.
|
156
|
(100)
|
48
|
41
|
(1)
|
(27)
|
107
|
(140)
|
84
|
–
|
|||||||||||||||||||||
U.S. government and
|
|||||||||||||||||||||||||||||||
federal agency
|
210
|
–
|
43
|
500
|
–
|
–
|
–
|
(500)
|
253
|
–
|
|||||||||||||||||||||
Retained interests
|
39
|
(28)
|
26
|
8
|
(5)
|
(5)
|
–
|
–
|
35
|
–
|
|||||||||||||||||||||
Equity
|
|||||||||||||||||||||||||||||||
Available-for-sale
|
24
|
–
|
–
|
–
|
–
|
–
|
4
|
(11)
|
17
|
–
|
|||||||||||||||||||||
Trading
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||||||||
Derivatives(d)(e)
|
227
|
102
|
2
|
2
|
–
|
(198)
|
–
|
6
|
141
|
81
|
|||||||||||||||||||||
Other
|
450
|
4
|
(9)
|
149
|
(145)
|
(6)
|
–
|
(55)
|
388
|
–
|
|||||||||||||||||||||
Total
|
$
|
8,670
|
$
|
(4)
|
$
|
(76)
|
$
|
3,137
|
$
|
(578)
|
$
|
(490)
|
$
|
453
|
$
|
(1,593)
|
$
|
9,519
|
$
|
81
|
|||||||||||
(a)
|
Earnings effects are primarily included in the “Revenues from services” and “Interest” captions in the Statement of Earnings.
|
(b)
|
Transfers in and out of Level 3 are considered to occur at the beginning of the period. Transfers out of Level 3 were a result of increased use of quotes from independent pricing vendors based on recent trading activity.
|
(c)
|
Represented the amount of unrealized gains or losses for the period included in earnings.
|
(d)
|
Represented derivative assets net of derivative liabilities and included cash accruals of $1 million not reflected in the fair value hierarchy table.
|
(e)
|
Gains (losses) included in net realized/unrealized gains (losses) included in earnings were offset by the earnings effects from the underlying items that were economically hedged. See Note 15.
|
Remeasured during the year ended December 31,
|
||||||||||||
2012
|
2011
|
|||||||||||
(In millions)
|
Level 2
|
Level 3
|
Level 2
|
Level 3
|
||||||||
Financing receivables and loans held for sale
|
$
|
366
|
$
|
4,094
|
$
|
158
|
$
|
5,159
|
||||
Cost and equity method investments(a)
|
8
|
313
|
–
|
402
|
||||||||
Long-lived assets, including real estate
|
702
|
2,184
|
1,343
|
3,254
|
||||||||
Total
|
$
|
1,076
|
$
|
6,591
|
$
|
1,501
|
$
|
8,815
|
||||
(a)
|
Includes the fair value of private equity and real estate funds included in Level 3 of $84 million and $123 million at December 31, 2012 and 2011, respectively.
|
Year ended December 31,
|
|||||
(In millions)
|
2012
|
2011
|
|||
Financing receivables and loans held for sale
|
$
|
(595)
|
$
|
(857)
|
|
Cost and equity method investments(a)
|
(153)
|
(272)
|
|||
Long-lived assets, including real estate(b)
|
(624)
|
(1,410)
|
|||
Total
|
$
|
(1,372)
|
$
|
(2,539)
|
|
(a)
|
Includes fair value adjustments associated with private equity and real estate funds of $(33) million and $(24) million during 2012 and 2011, respectively.
|
(b)
|
Includes impairments related to real estate equity properties and investments recorded in operating and administrative expenses of $218 million and $976 million during 2012 and 2011, respectively.
|
Fair value at
|
Range
|
||||||||
December 31,
|
Valuation
|
Unobservable
|
(weighted
|
||||||
(Dollars in millions)
|
2012
|
technique
|
inputs
|
average)
|
|||||
Recurring fair value measurements
|
|||||||||
Investment securities
|
|||||||||
Debt
|
|||||||||
U.S. corporate
|
$
|
1,652
|
Income approach
|
Discount rate
|
(a)
|
1.3%-29.9% (11.1%)
|
|||
Asset-backed
|
4,977
|
Income approach
|
Discount rate
|
(a)
|
2.1%-13.1% (3.8%)
|
||||
Corporate Non-U.S.
|
865
|
Income approach
|
Discount rate
|
(a)
|
1.5%-25.0% (13.2%)
|
||||
Other financial assets
|
360
|
Income approach
|
Weighted average
|
8.7%-10.2% (8.7%)
|
|||||
cost of capital
|
|||||||||
Non-recurring fair value measurements
|
|||||||||
Financing receivables and loans held for sale
|
$
|
2,633
|
Income approach
|
Capitalization rate
|
(b)
|
3.8%-14.0% (8.0%)
|
|||
202
|
Business enterprise
|
EBITDA multiple
|
2.0X-6.0X (4.8X)
|
||||||
value
|
|||||||||
Cost and equity method investments
|
72
|
Income approach
|
Capitalization rate
|
(b)
|
9.2%-12.8% (12.0%)
|
||||
Long-lived assets, including real estate
|
985
|
Income approach
|
Capitalization rate
|
(b)
|
4.8%-14.6% (7.3%)
|
||||
(a)
|
(b)
|
Represents the rate of return on net operating income which is considered acceptable for an investor and is used to determine a property’s capitalized value. An increase in the capitalization rate would result in a decrease in the fair value.
|
2012
|
2011
|
||||||||||||||||
Assets (liabilities)
|
Assets (liabilities)
|
||||||||||||||||
Notional
|
Carrying
|
Estimated
|
Notional
|
Carrying
|
Estimated
|
||||||||||||
December 31 (In millions)
|
amount
|
amount (net)
|
fair value
|
amount
|
amount (net)
|
fair value
|
|||||||||||
Assets
|
|
||||||||||||||||
Loans
|
$
|
(a)
|
$
|
236,678
|
$
|
239,084
|
$
|
(a)
|
$
|
250,999
|
$
|
251,433
|
|||||
Other commercial mortgages
|
(a)
|
2,222
|
2,249
|
(a)
|
1,494
|
1,537
|
|||||||||||
Loans held for sale
|
(a)
|
1,180
|
1,181
|
(a)
|
496
|
497
|
|||||||||||
Other financial instruments(c)
|
(a)
|
1,858
|
2,276
|
(a)
|
2,071
|
2,534
|
|||||||||||
Liabilities
|
|||||||||||||||||
Borrowings and
|
|||||||||||||||||
bank deposits(b)(d)
|
(a)
|
(397,300)
|
(414,533)
|
(a)
|
(443,097)
|
(449,403)
|
|||||||||||
Investment contract benefits
|
(a)
|
(3,321)
|
(4,150)
|
(a)
|
(3,493)
|
(4,240)
|
|||||||||||
Guaranteed investment contracts
|
(a)
|
(1,644)
|
(1,674)
|
(a)
|
(4,226)
|
(4,266)
|
|||||||||||
Insurance - credit life(e)
|
2,277
|
(120)
|
(104)
|
1,944
|
(106)
|
(88)
|
|||||||||||
(a)
|
These financial instruments do not have notional amounts.
|
(b)
|
See Note 8.
|
(c)
|
Principally cost method investments.
|
(d)
|
Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at December 31, 2012 and 2011 would have been reduced by $7,937 million and $9,051 million, respectively.
|
(e)
|
Net of reinsurance of $2,000 million at both December 31, 2012 and 2011.
|
Notional amount
|
|||||
December 31 (In millions)
|
2012
|
2011
|
|||
Ordinary course of business lending commitments(a)
|
$
|
3,708
|
$
|
3,756
|
|
Unused revolving credit lines(b)
|
|||||
Commercial(c)
|
17,929
|
18,757
|
|||
Consumer - principally credit cards
|
271,387
|
257,646
|
|||
(a)
|
Excluded investment commitments of $1,276 million and $2,064 million as of December 31, 2012 and 2011, respectively.
|
(b)
|
Excluded inventory financing arrangements, which may be withdrawn at our option, of $12,813 million and $12,354 million as of December 31, 2012 and 2011, respectively.
|
(c)
|
Included commitments of $12,923 million and $14,057 million as of December 31, 2012 and 2011, respectively, associated with secured financing arrangements that could have increased to a maximum of $15,731 million and $17,344 million at December 31, 2012 and 2011, respectively, based on asset volume under the arrangement.
|
2012
|
2011
|
||||||||||
Fair value
|
Fair value
|
||||||||||
December 31 (In millions)
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
|||||||
Interest rate contracts
|
$
|
8,443
|
$
|
719
|
$
|
9,445
|
$
|
1,049
|
|||
Currency exchange contracts
|
827
|
1,762
|
3,720
|
2,239
|
|||||||
Other contracts
|
–
|
–
|
–
|
–
|
|||||||
9,270
|
2,481
|
13,165
|
3,288
|
||||||||
Derivatives not accounted for as hedges
|
|||||||||||
Interest rate contracts
|
452
|
195
|
314
|
241
|
|||||||
Currency exchange contracts
|
1,457
|
358
|
1,440
|
972
|
|||||||
Other contracts
|
35
|
26
|
71
|
22
|
|||||||
1,944
|
579
|
1,825
|
1,235
|
||||||||
Netting adjustments(a)
|
(2,532)
|
(2,517)
|
(3,009)
|
(2,998)
|
|||||||
Cash collateral(b)(c)
|
(5,125)
|
(391)
|
(2,310)
|
(1,027)
|
|||||||
Total
|
$
|
3,557
|
$
|
152
|
$
|
9,671
|
$
|
498
|
|||
(a)
|
The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts included fair value adjustments related to our own and counterparty non-performance risk. At December 31, 2012 and 2011, the cumulative adjustment for non-performance risk was a gain (loss) of $(15) million and $(11) million, respectively.
|
(b)
|
Excludes excess cash collateral received of $42 million and $579 million at December 31, 2012 and 2011, respectively. Excludes excess cash collateral posted of $10 million at December 31, 2012.
|
(c)
|
Excludes securities pledged to us as collateral of $5,419 million and $10,346 million at December 31, 2012 and 2011, respectively, which includes excess securities collateral of $359 million at December 31, 2012.
|
2012
|
2011
|
||||||||||
(In millions)
|
Gain (loss)
|
Gain (loss)
|
Gain (loss)
|
Gain (loss)
|
|||||||
on hedging
|
on hedged
|
on hedging
|
on hedged
|
||||||||
derivatives
|
items
|
derivatives
|
items
|
||||||||
Interest rate contracts
|
$
|
708
|
$
|
(1,041)
|
$
|
5,888
|
$
|
(6,322)
|
|||
Currency exchange contracts
|
(169)
|
199
|
119
|
(144)
|
|||||||
Gain (loss) reclassified
|
|||||||||||
Gain (loss) recognized in AOCI
|
from AOCI into earnings
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
|
|
||||||||||
Interest rate contracts
|
$
|
(158)
|
$
|
(302)
|
$
|
(494)
|
$
|
(821)
|
|||
Currency exchange contracts
|
359
|
(338)
|
137
|
(487)
|
|||||||
Total
|
$
|
201
|
$
|
(640)
|
$
|
(357)
|
$
|
(1,308)
|
|||
|
|||||||||||
Gain (loss) recognized in CTA
|
Gain (loss) reclassified from CTA
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Currency exchange contracts
|
$
|
(2,905)
|
$
|
1,232
|
$
|
27
|
$
|
(716)
|
|||
Financing receivables
|
|||||
December 31 (In millions)
|
2012
|
2011
|
|||
CLL
|
|||||
Americas
|
$
|
72,517
|
$
|
80,505
|
|
Europe
|
37,035
|
36,899
|
|||
Asia
|
11,401
|
11,635
|
|||
Other
|
605
|
436
|
|||
Total CLL
|
121,558
|
129,475
|
|||
Energy Financial Services
|
4,851
|
5,912
|
|||
GECAS
|
10,915
|
11,901
|
|||
Other
|
486
|
1,282
|
|||
Total Commercial financing receivables, before allowance for losses
|
$
|
137,810
|
$
|
148,570
|
|
Non-impaired financing receivables
|
$
|
132,741
|
$
|
142,908
|
|
General reserves
|
554
|
718
|
|||
Impaired loans
|
5,069
|
5,662
|
|||
Specific reserves
|
487
|
812
|
|||
2012
|
2011
|
|||||||||||
Over 30 days
|
Over 90 days
|
Over 30 days
|
Over 90 days
|
|||||||||
December 31
|
past due
|
past due
|
past due
|
past due
|
||||||||
CLL
|
||||||||||||
Americas
|
1.1
|
%
|
0.5
|
%
|
1.3
|
%
|
0.8
|
%
|
||||
Europe
|
3.7
|
2.1
|
3.8
|
2.1
|
||||||||
Asia
|
0.9
|
0.6
|
1.3
|
1.0
|
||||||||
Other
|
0.1
|
–
|
2.0
|
0.1
|
||||||||
Total CLL
|
1.9
|
1.0
|
2.0
|
1.2
|
||||||||
Energy Financial Services
|
–
|
–
|
0.3
|
0.3
|
||||||||
GECAS
|
–
|
–
|
–
|
–
|
||||||||
Other
|
2.8
|
2.8
|
3.7
|
3.5
|
||||||||
Total
|
1.7
|
0.9
|
1.8
|
1.1
|
||||||||
Nonaccrual financing
|
Nonearning financing
|
|||||||||||
receivables
|
receivables
|
|||||||||||
December 31 (Dollars in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||
CLL
|
||||||||||||
Americas
|
$
|
1,951
|
$
|
2,417
|
$
|
1,333
|
$
|
1,862
|
||||
Europe
|
1,740
|
1,599
|
1,299
|
1,167
|
||||||||
Asia
|
395
|
428
|
193
|
269
|
||||||||
Other
|
52
|
68
|
52
|
11
|
||||||||
Total CLL
|
4,138
|
4,512
|
2,877
|
3,309
|
||||||||
Energy Financial Services
|
–
|
22
|
–
|
22
|
||||||||
GECAS
|
3
|
69
|
–
|
55
|
||||||||
Other
|
25
|
115
|
13
|
65
|
||||||||
Total
|
$
|
4,166
|
$
|
4,718
|
$
|
2,890
|
$
|
3,451
|
||||
Allowance for losses percentage
|
25.0
|
%
|
32.4
|
%
|
36.0
|
%
|
44.3
|
%
|
||||
With no specific allowance
|
With a specific allowance
|
|||||||||||||||||||
Recorded
|
Unpaid
|
Average
|
Recorded
|
Unpaid
|
Average
|
|||||||||||||||
investment
|
principal
|
investment in
|
investment
|
principal
|
Associated
|
investment in
|
||||||||||||||
December 31 (In millions)
|
in loans
|
balance
|
loans
|
in loans
|
balance
|
allowance
|
loans
|
|||||||||||||
2012
|
||||||||||||||||||||
CLL
|
||||||||||||||||||||
Americas
|
$
|
2,487
|
$
|
2,927
|
$
|
2,535
|
$
|
557
|
$
|
681
|
$
|
178
|
$
|
987
|
||||||
Europe
|
1,131
|
1,901
|
1,009
|
643
|
978
|
278
|
805
|
|||||||||||||
Asia
|
62
|
64
|
62
|
109
|
120
|
23
|
134
|
|||||||||||||
Other
|
–
|
–
|
43
|
52
|
68
|
6
|
16
|
|||||||||||||
Total CLL
|
3,680
|
4,892
|
3,649
|
1,361
|
1,847
|
485
|
1,942
|
|||||||||||||
Energy Financial Services
|
–
|
–
|
2
|
–
|
–
|
–
|
7
|
|||||||||||||
GECAS
|
–
|
–
|
17
|
3
|
3
|
–
|
5
|
|||||||||||||
Other
|
17
|
28
|
26
|
8
|
8
|
2
|
40
|
|||||||||||||
Total
|
$
|
3,697
|
$
|
4,920
|
$
|
3,694
|
$
|
1,372
|
$
|
1,858
|
$
|
487
|
$
|
1,994
|
||||||
2011
|
||||||||||||||||||||
CLL
|
||||||||||||||||||||
Americas
|
$
|
2,136
|
$
|
2,219
|
$
|
2,128
|
$
|
1,367
|
$
|
1,415
|
$
|
425
|
$
|
1,468
|
||||||
Europe
|
936
|
1,060
|
1,001
|
730
|
717
|
263
|
602
|
|||||||||||||
Asia
|
85
|
83
|
94
|
156
|
128
|
84
|
214
|
|||||||||||||
Other
|
54
|
58
|
13
|
11
|
11
|
2
|
5
|
|||||||||||||
Total CLL
|
3,211
|
3,420
|
3,236
|
2,264
|
2,271
|
774
|
2,289
|
|||||||||||||
Energy Financial Services
|
4
|
4
|
20
|
18
|
18
|
9
|
87
|
|||||||||||||
GECAS
|
28
|
28
|
59
|
–
|
–
|
–
|
11
|
|||||||||||||
Other
|
62
|
63
|
67
|
75
|
75
|
29
|
97
|
|||||||||||||
Total
|
$
|
3,305
|
$
|
3,515
|
$
|
3,382
|
$
|
2,357
|
$
|
2,364
|
$
|
812
|
$
|
2,484
|
||||||
Secured
|
|||||||||||
December 31 (In millions)
|
A
|
B
|
C
|
Total
|
|||||||
2012
|
|||||||||||
CLL
|
|||||||||||
Americas
|
$
|
68,360
|
$
|
1,775
|
$
|
2,382
|
$
|
72,517
|
|||
Europe
|
33,754
|
1,188
|
1,256
|
36,198
|
|||||||
Asia
|
10,732
|
117
|
372
|
11,221
|
|||||||
Other
|
161
|
–
|
94
|
255
|
|||||||
Total CLL
|
113,007
|
3,080
|
4,104
|
120,191
|
|||||||
Energy Financial Services
|
4,725
|
–
|
–
|
4,725
|
|||||||
GECAS
|
10,681
|
223
|
11
|
10,915
|
|||||||
Other
|
486
|
–
|
–
|
486
|
|||||||
Total
|
$
|
128,899
|
$
|
3,303
|
$
|
4,115
|
$
|
136,317
|
2011
|
|||||||||||
CLL
|
|||||||||||
Americas
|
$
|
73,103
|
$
|
2,816
|
$
|
4,586
|
$
|
80,505
|
|||
Europe
|
33,481
|
1,080
|
1,002
|
35,563
|
|||||||
Asia
|
10,644
|
116
|
685
|
11,445
|
|||||||
Other
|
345
|
–
|
91
|
436
|
|||||||
Total CLL
|
117,573
|
4,012
|
6,364
|
127,949
|
|||||||
Energy Financial Services
|
5,727
|
24
|
18
|
5,769
|
|||||||
GECAS
|
10,881
|
970
|
50
|
11,901
|
|||||||
Other
|
1,282
|
–
|
–
|
1,282
|
|||||||
Total
|
$
|
135,463
|
$
|
5,006
|
$
|
6,432
|
$
|
146,901
|
|||
Financing receivables
|
||||||
December 31 (In millions)
|
2012
|
2011
|
||||
Debt
|
$
|
19,746
|
$
|
24,501
|
||
Business Properties(a)
|
1,200
|
8,248
|
||||
Total Real Estate financing receivables, before allowance for losses
|
$
|
20,946
|
$
|
32,749
|
||
Non-impaired financing receivables
|
$
|
15,253
|
$
|
24,002
|
||
General reserves
|
132
|
267
|
||||
Impaired loans
|
5,693
|
8,747
|
||||
Specific reserves
|
188
|
822
|
||||
(a)
|
In 2012, we completed the sale of a portion of our Business Properties portfolio.
|
2012
|
2011
|
|||||||||||
Over 30 days
|
Over 90 days
|
Over 30 days
|
Over 90 days
|
|||||||||
December 31
|
past due
|
past due
|
past due
|
past due
|
||||||||
Debt
|
1.7
|
%
|
1.7
|
%
|
2.4
|
%
|
2.3
|
%
|
||||
Business Properties
|
10.8
|
10.2
|
3.9
|
3.0
|
||||||||
Total
|
2.3
|
2.2
|
2.8
|
2.5
|
Nonaccrual financing
|
Nonearning financing
|
|||||||||||
receivables
|
receivables
|
|||||||||||
December 31 (Dollars in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||
Debt
|
$
|
4,576
|
$
|
6,351
|
$
|
321
|
$
|
541
|
||||
Business Properties
|
309
|
598
|
123
|
249
|
||||||||
Total
|
$
|
4,885
|
$
|
6,949
|
$
|
444
|
$
|
790
|
||||
Allowance for losses percentage
|
6.6
|
%
|
15.7
|
%
|
72.1
|
%
|
137.8
|
%
|
||||
With no specific allowance
|
With a specific allowance
|
|||||||||||||||||||
Recorded
|
Unpaid
|
Average
|
Recorded
|
Unpaid
|
Average
|
|||||||||||||||
investment
|
principal
|
investment
|
investment
|
principal
|
Associated
|
investment
|
||||||||||||||
December 31 (In millions)
|
in loans
|
balance
|
in loans
|
in loans
|
balance
|
allowance
|
in loans
|
|||||||||||||
2012
|
||||||||||||||||||||
Debt
|
$
|
3,294
|
$
|
3,515
|
$
|
3,575
|
$
|
2,077
|
$
|
2,682
|
$
|
156
|
$
|
3,455
|
||||||
Business Properties
|
197
|
197
|
198
|
125
|
125
|
32
|
297
|
|||||||||||||
Total
|
$
|
3,491
|
$
|
3,712
|
$
|
3,773
|
$
|
2,202
|
$
|
2,807
|
$
|
188
|
$
|
3,752
|
||||||
2011
|
||||||||||||||||||||
Debt
|
$
|
3,558
|
$
|
3,614
|
$
|
3,568
|
$
|
4,560
|
$
|
4,652
|
$
|
717
|
$
|
5,435
|
||||||
Business Properties
|
232
|
232
|
215
|
397
|
397
|
105
|
460
|
|||||||||||||
Total
|
$
|
3,790
|
$
|
3,846
|
$
|
3,783
|
$
|
4,957
|
$
|
5,049
|
$
|
822
|
$
|
5,895
|
||||||
Loan-to-value ratio
|
|||||||||||||||||
2012
|
2011
|
||||||||||||||||
Less than
|
80% to
|
Greater than
|
Less than
|
80% to
|
Greater than
|
||||||||||||
December 31 (In millions)
|
80%
|
95%
|
95%
|
80%
|
95%
|
95%
|
|||||||||||
Debt
|
$
|
13,570
|
$
|
2,572
|
$
|
3,604
|
$
|
14,454
|
$
|
4,593
|
$
|
5,454
|
|||||
Financing receivables
|
|||||
December 31 (In millions)
|
2012
|
2011
|
|||
Non-U.S. residential mortgages
|
$
|
33,451
|
$
|
35,550
|
|
Non-U.S. installment and revolving credit
|
18,546
|
18,544
|
|||
U.S. installment and revolving credit
|
50,853
|
46,689
|
|||
Non-U.S. auto
|
4,260
|
5,691
|
|||
Other
|
8,070
|
7,244
|
|||
Total Consumer financing receivables, before allowance for losses
|
$
|
115,180
|
$
|
113,718
|
|
Non-impaired financing receivables
|
$
|
111,960
|
$
|
110,825
|
|
General reserves
|
2,950
|
2,891
|
|||
Impaired loans
|
3,220
|
2,893
|
|||
Specific reserves
|
674
|
680
|
|||
2012
|
2011
|
|||||||||||
Over 30 days
|
Over 90 days
|
Over 30 days
|
Over 90 days
|
|||||||||
December 31
|
past due
|
past due(a)
|
past due
|
past due(a)
|
||||||||
Non-U.S. residential mortgages
|
12.0
|
%
|
7.5
|
%
|
12.3
|
%
|
7.9
|
%
|
||||
Non-U.S. installment and revolving credit
|
3.9
|
1.1
|
4.1
|
1.2
|
||||||||
U.S. installment and revolving credit
|
4.6
|
2.0
|
5.0
|
2.2
|
||||||||
Non-U.S. auto
|
3.1
|
0.5
|
3.1
|
0.6
|
||||||||
Other
|
2.8
|
1.7
|
3.5
|
2.0
|
||||||||
Total
|
6.5
|
3.4
|
6.9
|
3.7
|
||||||||
(a)
|
Nonaccrual financing
|
Nonearning financing
|
|||||||||||
receivables
|
receivables
|
|||||||||||
December 31 (Dollars in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||
Non-U.S. residential mortgages
|
$
|
2,600
|
$
|
2,995
|
$
|
2,569
|
$
|
2,870
|
||||
Non-U.S. installment and revolving credit
|
224
|
321
|
224
|
263
|
||||||||
U.S. installment and revolving credit
|
1,026
|
990
|
1,026
|
990
|
||||||||
Non-U.S. auto
|
24
|
43
|
24
|
43
|
||||||||
Other
|
427
|
487
|
351
|
419
|
||||||||
Total
|
$
|
4,301
|
$
|
4,836
|
$
|
4,194
|
$
|
4,585
|
||||
Allowance for losses percentage
|
84.3
|
%
|
73.8
|
%
|
86.4
|
%
|
77.9
|
%
|
||||
Loan-to-value ratio
|
|||||||||||||||||
2012
|
2011
|
||||||||||||||||
80% or
|
Greater than
|
Greater than
|
80% or
|
Greater than
|
Greater than
|
||||||||||||
December 31 (In millions)
|
less
|
80% to 90%
|
90%
|
less
|
80% to 90%
|
90%
|
|||||||||||
Non-U.S. residential mortgages
|
$
|
18,613
|
$
|
5,739
|
$
|
9,099
|
$
|
19,834
|
$
|
6,087
|
$
|
9,629
|
Internal ratings translated to approximate credit bureau equivalent score
|
|||||||||||||||||
2012
|
2011
|
||||||||||||||||
681 or
|
615 to
|
614 or
|
681 or
|
615 to
|
614 or
|
||||||||||||
(In millions)
|
higher
|
680
|
less
|
higher
|
680
|
less
|
|||||||||||
Non-U.S. installment and
|
|||||||||||||||||
revolving credit
|
$
|
10,493
|
$
|
4,496
|
$
|
3,557
|
$
|
9,913
|
$
|
4,838
|
$
|
3,793
|
|||||
U.S. installment and
|
|||||||||||||||||
revolving credit
|
33,204
|
9,753
|
7,896
|
28,918
|
9,398
|
8,373
|
|||||||||||
Non-U.S. auto
|
3,141
|
666
|
453
|
3,927
|
1,092
|
672
|
·
|
Trinity comprises two consolidated entities that hold investment securities, the majority of which are investment grade, and were funded by the issuance of GICs. The GICs included conditions under which certain holders could require immediate repayment of their investment should the long-term credit ratings of GECC fall below AA-/Aa3 or the short-term credit ratings fall below A-1+/P-1. Following the April 3, 2012 Moody’s downgrade of GECC’s long-term credit rating to A1, substantially all of these GICs became redeemable by their holders. In 2012, holders of $1,981 million in principal amount of GICs redeemed their holdings. The redemption was funded primarily through advances from GECC. The remaining outstanding GICs will continue to be subject to their scheduled maturities and individual terms which may include provisions permitting redemption upon a downgrade of one or more of GECC’s ratings, among other things.
|
·
|
Consolidated Securitization Entities (CSEs) comprise primarily our previously unconsolidated QSPEs that were consolidated on January 1, 2010 in connection with our adoption of ASU 2009-16 & 17. These entities were created to facilitate securitization of financial assets and other forms of asset-backed financing which serve as an alternative funding source by providing access to variable funding notes and term markets. The securitization transactions executed with these entities are similar to those used by many financial institutions and substantially all are non-recourse. We provide servicing for substantially all of the assets in these entities.
|
·
|
Other remaining assets and liabilities of consolidated VIEs relate primarily to three categories of entities: (1) joint ventures that lease light industrial equipment of $1,438 million of assets and $836 million of liabilities; (2) other entities that are involved in power generating and leasing activities of $891 million of assets and no liabilities; and (3) insurance entities that, among other lines of business, provide property and casualty and workers’ compensation coverage for GE of $1,193 million of assets and $588 million of liabilities.
|
Consolidated Securitization Entities
|
||||||||||||||||||||
Credit
|
Trade
|
|||||||||||||||||||
(In millions)
|
Trinity
|
(a)
|
cards
|
(b)
|
Equipment
|
(b)
|
Real estate
|
(c)
|
receivables
|
Other
|
Total
|
|||||||||
December 31, 2012
|
||||||||||||||||||||
Assets(d)
|
||||||||||||||||||||
Financing receivables, net
|
$
|
–
|
$
|
24,169
|
$
|
12,456
|
$
|
50
|
$
|
2,339
|
$
|
1,902
|
$
|
40,916
|
||||||
Investment securities
|
3,435
|
–
|
–
|
–
|
–
|
1,051
|
4,486
|
|||||||||||||
Other assets
|
217
|
29
|
360
|
–
|
–
|
1,873
|
2,479
|
|||||||||||||
Total
|
$
|
3,652
|
$
|
24,198
|
$
|
12,816
|
$
|
50
|
$
|
2,339
|
$
|
4,826
|
$
|
47,881
|
||||||
Liabilities(d)
|
||||||||||||||||||||
Borrowings
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
707
|
$
|
707
|
||||||
Non-recourse borrowings
|
–
|
17,208
|
9,811
|
54
|
2,050
|
–
|
29,123
|
|||||||||||||
Other liabilities
|
1,656
|
146
|
11
|
2
|
8
|
1,313
|
3,136
|
|||||||||||||
Total
|
$
|
1,656
|
$
|
17,354
|
$
|
9,822
|
$
|
56
|
$
|
2,058
|
$
|
2,020
|
$
|
32,966
|
||||||
December 31, 2011
|
||||||||||||||||||||
Assets(d)
|
||||||||||||||||||||
Financing receivables, net
|
$
|
–
|
$
|
19,229
|
$
|
10,523
|
$
|
3,521
|
$
|
1,614
|
$
|
2,973
|
$
|
37,860
|
||||||
Investment securities
|
4,289
|
–
|
–
|
–
|
–
|
1,031
|
5,320
|
|||||||||||||
Other assets
|
389
|
17
|
283
|
210
|
–
|
2,250
|
3,149
|
|||||||||||||
Total
|
$
|
4,678
|
$
|
19,246
|
$
|
10,806
|
$
|
3,731
|
$
|
1,614
|
$
|
6,254
|
$
|
46,329
|
||||||
Liabilities(d)
|
||||||||||||||||||||
Borrowings
|
$
|
–
|
$
|
–
|
$
|
2
|
$
|
25
|
$
|
–
|
$
|
821
|
$
|
848
|
||||||
Non-recourse borrowings
|
–
|
14,184
|
8,166
|
3,659
|
1,769
|
980
|
28,758
|
|||||||||||||
Other liabilities
|
4,456
|
37
|
–
|
19
|
23
|
1,312
|
5,847
|
|||||||||||||
Total
|
$
|
4,456
|
$
|
14,221
|
$
|
8,168
|
$
|
3,703
|
$
|
1,792
|
$
|
3,113
|
$
|
35,453
|
||||||
(a)
|
(b)
|
We provide servicing to the CSEs and are contractually permitted to commingle cash collected from customers on financing receivables sold to CSE investors with our own cash prior to payment to a CSE, provided our short-term credit rating does not fall below A-1/P-1. These CSEs also owe us amounts for purchased financial assets and scheduled interest and principal payments. At December 31, 2012 and 2011, the amounts of commingled cash owed to the CSEs were $6,225 million and $5,655 million, respectively, and the amounts owed to us by CSEs were $6,143 million and $5,165 million, respectively.
|
(c)
|
On October 1, 2012, we completed the sale of our Business Property business, which included servicing rights for its CSEs. We deconsolidated the Business Properties CSEs in the fourth quarter of 2012 as we no longer have the power to direct the activities of these entities.
|
(d)
|
Asset amounts exclude intercompany receivables for cash collected on behalf of the entities by GE as servicer, which are eliminated in consolidation. Such receivables provide the cash to repay the entities’ liabilities. If these intercompany receivables were included in the table above, assets would be higher. In addition, other assets, borrowings and other liabilities exclude intercompany balances that are eliminated in consolidation.
|
2012
|
2011
|
||||||||||||||||
December 31 (In millions)
|
PTL
|
All other
|
Total
|
PTL
|
All other
|
Total
|
|||||||||||
Other assets and investment
|
|||||||||||||||||
securities
|
$
|
2,080
|
$
|
8,306
|
$
|
10,386
|
$
|
7,038
|
$
|
7,318
|
$
|
14,356
|
|||||
Financing receivables – net
|
–
|
2,654
|
2,654
|
–
|
2,507
|
2,507
|
|||||||||||
Total investments
|
2,080
|
10,960
|
13,040
|
7,038
|
9,825
|
16,863
|
|||||||||||
Contractual obligations to fund
|
|||||||||||||||||
investments or guarantees
|
140
|
2,462
|
2,602
|
600
|
2,244
|
2,844
|
|||||||||||
Revolving lines of credit
|
–
|
41
|
41
|
1,356
|
92
|
1,448
|
|||||||||||
Total
|
$
|
2,220
|
$
|
13,463
|
$
|
15,683
|
$
|
8,994
|
$
|
12,161
|
$
|
21,155
|
|||||
·
|
Credit Support. We have provided $2,973 million of credit support on behalf of certain customers or associated companies, predominantly joint ventures and partnerships, using arrangements such as standby letters of credit and performance guarantees. These arrangements enable these customers and associated companies to execute transactions or obtain desired financing arrangements with third parties. Should the customer or associated company fail to perform under the terms of the transaction or financing arrangement, we would be required to perform on their behalf. Under most such arrangements, our guarantee is secured, usually by the asset being purchased or financed, or possibly by certain other assets of the customer or associated company. The length of these credit support arrangements parallels the length of the related financing arrangements or transactions. The liability for such credit support was $34 million at December 31, 2012.
|
·
|
Indemnification Agreements. We have agreements that require us to fund up to $9 million at December 31, 2012 under residual value guarantees on a variety of leased equipment. Under most of our residual value guarantees, our commitment is secured by the leased asset. The liability for these indemnification agreements was $4 million at December 31, 2012. We also had $2,741 million of other indemnification commitments, substantially all of which relate to standard representations and warranties in sales of businesses or assets.
|
·
|
Contingent Consideration. These are agreements to provide additional consideration to a buyer or seller in a business combination if contractually specified conditions related to the acquisition or disposition are achieved. Adjustments to the proceeds from our sale of GE Money Japan are further discussed in Note 2. All other potential payments related to contingent consideration are insignificant.
|
(In millions)
|
2012
|
2011
|
2010
|
|||||
All other operating activities
|
||||||||
Net change in other assets
|
$
|
203
|
$
|
215
|
$
|
28
|
||
Amortization of intangible assets
|
450
|
566
|
653
|
|||||
Net realized losses on investment securities
|
34
|
197
|
91
|
|||||
Cash collateral on derivative contracts
|
2,900
|
1,247
|
–
|
|||||
Change in other liabilities
|
524
|
(1,229)
|
(2,709)
|
|||||
Other
|
1,281
|
2,286
|
4,419
|
|||||
$
|
5,392
|
$
|
3,282
|
$
|
2,482
|
|||
Net decrease (increase) in financing receivables
|
||||||||
Increase in loans to customers
|
$
|
(308,727)
|
$
|
(322,853)
|
$
|
(309,548)
|
||
Principal collections from customers - loans
|
307,711
|
332,548
|
327,139
|
|||||
Investment in equipment for financing leases
|
(9,192)
|
(9,610)
|
(10,065)
|
|||||
Principal collections from customers - financing leases
|
10,976
|
12,431
|
14,743
|
|||||
Net change in credit card receivables
|
(8,027)
|
(6,263)
|
(4,554)
|
|||||
Sales of financing receivables
|
12,642
|
8,117
|
5,331
|
|||||
$
|
5,383
|
$
|
14,370
|
$
|
23,046
|
|||
All other investing activities
|
||||||||
Purchases of securities by insurance activities
|
$
|
(2,645)
|
$
|
(1,786)
|
$
|
(1,712)
|
||
Dispositions and maturities of securities by insurance activities
|
2,999
|
2,856
|
3,136
|
|||||
Other assets - investments
|
7,714
|
5,822
|
1,536
|
|||||
Change in other receivables
|
123
|
(128)
|
525
|
|||||
Other
|
3,510
|
537
|
6,475
|
|||||
$
|
11,701
|
$
|
7,301
|
$
|
9,960
|
|||
Newly issued debt (maturities longer than 90 days)
|
||||||||
Short-term (91 to 365 days)
|
$
|
59
|
$
|
10
|
$
|
2,496
|
||
Long-term (longer than one year)
|
55,782
|
43,257
|
35,475
|
|||||
$
|
55,841
|
$
|
43,267
|
$
|
37,971
|
|||
Repayments and other debt reductions (maturities
|
||||||||
longer than 90 days)
|
||||||||
Short-term (91 to 365 days)
|
$
|
(94,114)
|
$
|
(81,918)
|
$
|
(95,170)
|
||
Long-term (longer than one year)
|
(9,368)
|
(2,786)
|
(1,571)
|
|||||
Principal payments - non-recourse, leveraged leases
|
(426)
|
(732)
|
(638)
|
|||||
$
|
(103,908)
|
$
|
(85,436)
|
$
|
(97,379)
|
|||
All other financing activities
|
||||||||
Proceeds from sales of investment contracts
|
$
|
2,697
|
$
|
4,396
|
$
|
5,337
|
||
Redemption of investment contracts
|
(5,515)
|
(6,230)
|
(8,647)
|
|||||
Other
|
(50)
|
42
|
(8)
|
|||||
$
|
(2,868)
|
$
|
(1,792)
|
$
|
(3,318)
|
|||
Total revenues
|
Intersegment revenues(a)
|
External revenues
|
||||||||||||||||||||||||
(In millions)
|
2012
|
2011
|
2010
|
2012
|
2011
|
2010
|
2012
|
2011
|
2010
|
|||||||||||||||||
CLL
|
$
|
16,857
|
$
|
18,178
|
$
|
18,447
|
$
|
47
|
$
|
78
|
$
|
40
|
$
|
16,810
|
$
|
18,100
|
$
|
18,407
|
||||||||
Consumer
|
15,579
|
16,767
|
17,180
|
3
|
10
|
17
|
15,576
|
16,757
|
17,163
|
|||||||||||||||||
Real Estate
|
3,654
|
3,712
|
3,744
|
22
|
17
|
14
|
3,632
|
3,695
|
3,730
|
|||||||||||||||||
Energy Financial
|
||||||||||||||||||||||||||
Services
|
1,508
|
1,223
|
1,957
|
–
|
–
|
–
|
1,508
|
1,223
|
1,957
|
|||||||||||||||||
GECAS
|
5,294
|
5,262
|
5,127
|
–
|
–
|
–
|
5,294
|
5,262
|
5,127
|
|||||||||||||||||
GECC corporate
|
||||||||||||||||||||||||||
items and
|
||||||||||||||||||||||||||
eliminations
|
3,147
|
3,926
|
3,401
|
(72)
|
(105)
|
(71)
|
3,219
|
4,031
|
3,472
|
|||||||||||||||||
Total
|
$
|
46,039
|
$
|
49,068
|
$
|
49,856
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
46,039
|
$
|
49,068
|
$
|
49,856
|
||||||||
(a)
|
Sales from one component to another generally are priced at equivalent commercial selling prices.
|
Depreciation and amortization
|
Provision (benefit) for income taxes
|
||||||||||||||||
(In millions)
|
2012
|
2011
|
2010
|
2012
|
2011
|
2010
|
|||||||||||
CLL
|
$
|
4,413
|
$
|
4,533
|
$
|
4,966
|
$
|
710
|
$
|
742
|
$
|
280
|
|||||
Consumer
|
235
|
268
|
279
|
1,143
|
1,345
|
867
|
|||||||||||
Real Estate
|
639
|
707
|
801
|
(562)
|
(730)
|
(1,555)
|
|||||||||||
Energy Financial Services
|
64
|
48
|
205
|
(186)
|
(115)
|
(44)
|
|||||||||||
GECAS
|
2,065
|
2,045
|
2,080
|
5
|
96
|
(99)
|
|||||||||||
GECC corporate items
|
|||||||||||||||||
and eliminations
|
89
|
82
|
74
|
(619)
|
(439)
|
(434)
|
|||||||||||
Total
|
$
|
7,505
|
$
|
7,683
|
$
|
8,405
|
$
|
491
|
$
|
899
|
$
|
(985)
|
|||||
Interest on loans(a)
|
Interest expense(b)
|
||||||||||||||||
(In millions)
|
2012
|
2011
|
2010
|
2012
|
2011
|
2010
|
|||||||||||
CLL
|
$
|
5,121
|
$
|
5,628
|
$
|
5,984
|
$
|
4,551
|
$
|
5,093
|
$
|
5,638
|
|||||
Consumer
|
11,861
|
11,965
|
12,008
|
3,360
|
4,012
|
4,419
|
|||||||||||
Real Estate
|
1,494
|
1,822
|
2,119
|
1,883
|
2,407
|
2,578
|
|||||||||||
Energy Financial Services
|
136
|
169
|
215
|
675
|
662
|
706
|
|||||||||||
GECAS
|
398
|
364
|
346
|
1,520
|
1,504
|
1,441
|
|||||||||||
GECC corporate items
|
|||||||||||||||||
and eliminations
|
64
|
108
|
138
|
(292)
|
188
|
(272)
|
|||||||||||
Total
|
$
|
19,074
|
$
|
20,056
|
$
|
20,810
|
$
|
11,697
|
$
|
13,866
|
$
|
14,510
|
|||||
(a)
|
Represents one component of Revenues from services, see Note 12.
|
(b)
|
Represents total interest expense, see Statement of Earnings.
|
Assets(a)(b)(c)
|
Property, plant and equipment additions
|
||||||||||||||||
At December 31,
|
For the years ended December 31,
|
||||||||||||||||
(In millions)
|
2012
|
2011
|
2010
|
2012
|
2011
|
2010
|
|||||||||||
CLL
|
$
|
182,432
|
$
|
193,869
|
$
|
202,650
|
$
|
6,833
|
$
|
6,741
|
$
|
3,941
|
|||||
Consumer
|
138,997
|
138,534
|
146,691
|
79
|
78
|
44
|
|||||||||||
Real Estate
|
46,247
|
60,873
|
72,630
|
3
|
4
|
17
|
|||||||||||
Energy Financial Services
|
19,185
|
18,357
|
19,549
|
–
|
1
|
82
|
|||||||||||
GECAS
|
49,420
|
48,821
|
49,106
|
4,944
|
3,029
|
3,582
|
|||||||||||
GECC corporate items
|
|||||||||||||||||
and eliminations
|
102,942
|
124,082
|
114,629
|
27
|
29
|
8
|
|||||||||||
Total
|
$
|
539,223
|
$
|
584,536
|
$
|
605,255
|
$
|
11,886
|
$
|
9,882
|
$
|
7,674
|
|||||
(a)
|
Assets of discontinued operations are included in GECC corporate items and eliminations for all periods presented.
|
(b)
|
Total assets of the CLL, Consumer, Energy Financial Services and GECAS operating segments at December 31, 2012, include investment in and advances to associated companies of $5,662 million, $5,205 million, $7,475 million and $777 million, respectively. Investments in and advances to associated companies contributed approximately $265 million, $534 million, $585 million and $155 million, respectively, to segment pre-tax income of the CLL, Consumer, Energy Financial Services and GECAS operating segments, respectively, for the year ended December 31, 2012.
|
(c)
|
Aggregate summarized financial information for significant associated companies assuming a 100% ownership interest included total assets at December 31, 2012 and 2011 of $110,695 million and $104,554 million, respectively. Assets were primarily financing receivables of $66,878 million and $57,477 million at December 31, 2012 and 2011, respectively. Total liabilities at December 31, 2012 and 2011 were $81,784 million and $77,208 million, respectively, comprised primarily of bank deposits of $26,386 million and $20,980 million at December 31, 2012 and 2011, respectively, and debt of $42,664 million and $46,170 million at December 31, 2012 and 2011, respectively. Revenues for 2012, 2011 and 2010 totaled $17,592 million, $15,898 million and $18,618 million, respectively, and net earnings for 2012, 2011 and 2010 totaled $2,861 million, $2,178 million and $3,811 million, respectively.
|
First quarter
|
Second quarter
|
Third quarter
|
Fourth quarter
|
||||||||||||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||||
Total revenues
|
$
|
11,442
|
$
|
13,036
|
$
|
11,458
|
$
|
12,440
|
$
|
11,369
|
$
|
12,015
|
$
|
11,770
|
$
|
11,577
|
|||||||
Earnings (loss) from continuing
|
|||||||||||||||||||||||
operations before
|
|||||||||||||||||||||||
income taxes
|
1,991
|
2,250
|
2,238
|
1,981
|
1,777
|
1,616
|
1,949
|
1,763
|
|||||||||||||||
Benefit (provision) for income
|
|||||||||||||||||||||||
taxes
|
(187)
|
(429)
|
(102)
|
(346)
|
(78)
|
(59)
|
(124)
|
(65)
|
|||||||||||||||
Earnings from continuing
|
|||||||||||||||||||||||
operations
|
1,804
|
1,821
|
2,136
|
1,635
|
1,699
|
1,557
|
1,825
|
1,698
|
|||||||||||||||
Earnings (loss) from discontinued
|
|||||||||||||||||||||||
operations, net of taxes
|
(217)
|
35
|
(553)
|
195
|
(111)
|
(64)
|
(305)
|
(240)
|
|||||||||||||||
Net earnings (loss)
|
1,587
|
1,856
|
1,583
|
1,830
|
1,588
|
1,493
|
1,520
|
1,458
|
|||||||||||||||
Less net earnings (loss)
|
|||||||||||||||||||||||
attributable to noncontrolling
|
|||||||||||||||||||||||
interests
|
12
|
31
|
14
|
20
|
20
|
38
|
17
|
38
|
|||||||||||||||
Net earnings (loss) attributable
|
|||||||||||||||||||||||
to GECC
|
$
|
1,575
|
$
|
1,825
|
$
|
1,569
|
$
|
1,810
|
$
|
1,568
|
$
|
1,455
|
$
|
1,503
|
$
|
1,420
|
|||||||
(In millions)
|
2012
|
2011
|
|||
Type of fees
|
|||||
Audit fees
|
$
|
31.2
|
$
|
35.1
|
|
Audit-related fees
|
4.3
|
7.7
|
|||
Tax fees
|
4.6
|
2.9
|
|||
Total
|
$
|
40.1
|
$
|
45.7
|
|
(a) 1.
|
Financial Statements
|
||||
Included in Part II of this report:
|
|||||
Report of Independent Registered Public Accounting Firm
Management’s Annual Report on Internal Control over Financial Reporting
Statement of Earnings for each of the years in the three-year period
ended December 31, 2012
Statement of Comprehensive Income for each of the years in the three-year period ended
December 31, 2012
Statement of Changes in Shareowners’ Equity for each of the years in the three-year period
ended December 31, 2012
Statement of Financial Position at December 31, 2012 and 2011
Statement of Cash Flows for each of the years in the three-year period
ended December 31, 2012
Notes to Consolidated Financial Statements
|
|||||
Incorporated by reference:
|
|||||
The consolidated financial statements of General Electric Company, set forth in the Annual Report on Form 10-K of General Electric Company (S.E.C. File No. 001-00035) for the year ended December 31, 2012 (pages 24 through 193), Exhibit 12(a) (Computation of Ratio of Earnings to Fixed Charges) and Exhibit 12(b) (Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends) of General Electric Company.
|
|||||
(a) 2.
|
Financial Statement Schedules
|
||||
Schedule I
|
Condensed financial information of registrant.
|
||||
All other schedules listed in Reg. 210.5-04 have been omitted because they are not applicable or the required information is shown in the financial statements or notes thereto.
|
|||||
(a) 3.
|
Exhibit Index
|
||||
The exhibits listed below, as part of Form 10-K, are numbered in conformity with the numbering used in Item 601 of Regulation S-K of the U.S. Securities and Exchange Commission.
|
|||||
Exhibit
Number
|
Description
|
||||
2(a)
|
Agreement and Plan of Merger dated June 25, 2001, between GECC and GECS Merger Sub, Inc. (Incorporated by reference to Exhibit 2.1 of GECC’s Current Report on Form 8-K dated as of July 3, 2001 (Commission file number 001-06461)).
|
||||
3(i)
|
A complete copy of the Certificate of Incorporation of GECC consisting of the Restated Certificate of Incorporation of GECC as filed with the Office of the Secretary of State, State of Delaware on April 1, 2008, as amended by the Certificates of Designations of GECC with respect to the Series A and Series B Preferred Stock as filed with the Office of the Secretary of State, State of Delaware on June 8, 2012 and July 25, 2012, respectively (Incorporated by reference to Exhibit 3(i) to GECC’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2012 (Commission file number 001-06461)).
|
||||
3(ii)
|
A complete copy of the Amended and Restated By-Laws of GECC as last amended on February 21, 2008, and currently in effect (Incorporated by reference to Exhibit 3(ii) of GECC’s Form 10-Q Report for the quarterly period ended March 31, 2008 (Commission file number 001-06461)).
|
||||
4(a) | Form of Certificate representing the Series A Preferred Stock (Incorporated by reference to Exhibit 4.1 of GECC’s Current Report on Form 8-K dated as of June 8, 2012 (Commission file number 001-06461)). | ||||
|
4(b) | Form of Certificate representing the Series B Preferred Stock (Incorporated by reference to Exhibit 4.1 of GECC’s Current Report on Form 8-K dated as of July 25, 2012 (Commission file number 001-06461)). | ||||
4(c) | Amended and Restated General Electric Capital Corporation (GECC) Standard Global Multiple Series Indenture Provisions dated as of February 27, 1997 (Incorporated by reference to Exhibit 4(a) to GECC’s Registration Statement on Form S-3, File No. 333-59707 (Commission file number 001-06461)). | ||||
4(d)
|
Third Amended and Restated Indenture dated as of February 27, 1997, between GECC and The Bank of New York Mellon, as successor trustee (Incorporated by reference to Exhibit 4(c) to GECC’s Registration Statement on Form S-3, File No. 333-59707 (Commission file number 001-06461)). | ||||
4(e)
|
First Supplemental Indenture dated as of May 3, 1999, supplemental to Third Amended and Restated Indenture dated as of February 27, 1997 (Incorporated by reference to Exhibit 4(dd) to GECC’s Post-Effective Amendment No. 1 to Registration Statement on Form S-3, File No. 333-76479 (Commission file number 001-06461)).
|
|
|||
4(f)
|
Second Supplemental Indenture dated as of July 2, 2001, supplemental to Third Amended and Restated Indenture dated as of February 27, 1997 (Incorporated by reference to Exhibit 4(f) to GECC’s Post-Effective Amendment No. 1 to Registration Statement on Form S-3, File No. 333-40880 (Commission file number 001-06461)).
|
||||
4(g)
|
Third Supplemental Indenture dated as of November 22, 2002, supplemental to Third Amended and Restated Indenture dated as of February 27, 1997 (Incorporated by reference to Exhibit 4(cc) to GECC’s Post-Effective Amendment No. 1 to Registration Statement on Form S-3, File No. 333-100527 (Commission file number 001-06461)).
|
||||
4(h)
|
Fourth Supplemental Indenture dated as of August 24, 2007, supplemental to Third Amended and Restated Indenture dated as of February 27, 1997 (Incorporated by reference to Exhibit 4(g) to GECC’s Registration Statement on Form S-3, File No. 333-156929 (Commission file number 001-06461)).
|
||||
4(i)
|
Eleventh Amended and Restated Fiscal and Paying Agency Agreement among GECC, GE Capital Australia Funding Pty Ltd., GE Capital European Funding, GE Capital U.K. Funding and The Bank of New York Mellon and The Bank of New York Mellon (Luxembourg) S.A., as fiscal and paying agents, dated as of April 5, 2012 (Incorporated by reference to Exhibit 4(yy) to Post-Effective Amendment No.1 to GECC’s Registration Statement on Form S-3, File No. 333-178262 (Commission file number 001-06461)).
|
||||
4(j)
|
Form of Global Medium-Term Note, Series A, Fixed Rate Registered Note (Incorporated by reference to Exhibit 4(r) to GECC’s Registration Statement on Form S-3, File No. 333-156929 (Commission file number 001-06461)).
|
||||
4(k)
|
Form of Global Medium-Term Note, Series A, Floating Rate Registered Note (Incorporated by reference to Exhibit 4(s) to GECC’s Registration Statement on Form S-3, File No. 333-156929 (Commission file number 001-06461)).
|
||||
4(l)
|
Form of GE Capital Fixed Rate InterNote (Incorporated by reference to Exhibit 4(pp) to GECC’s Registration Statement on Form S-3, File No. 333-156929 (Commission file number 001-06461)).
|
||||
4(m)
|
Form of Euro Medium-Term Note and Debt Security – Permanent Global Fixed Rate Bearer Note (Incorporated by reference to Exhibit 4(i) to General Electric Capital Services, Inc.’s (GECS) Form 10-K Report for the year ended December 31, 2006 (Commission file number 000-14804)).
|
||||
4(n) | Form of Euro Medium-Term Note and Debt Security – Permanent Global Floating Rate Bearer Note (Incorporated by reference to Exhibit 4(j) to GECS’ Form 10-K Report for the year ended December 31, 2006 (Commission file number 000-14804)). |
|
|||
4(o) | Form of Euro Medium-Term Note and Debt Security – Temporary Global Fixed Rate Bearer Note (Incorporated by reference to Exhibit 4(k) to GECS’ Form 10-K Report for the year ended December 31, 2006 (Commission file number 000-14804)). | ||||
4(p) | Form of Euro Medium-Term Note and Debt Security – Temporary Global Floating Rate Bearer Note (Incorporated by reference to Exhibit 4(l) to GECS’ Form 10-K Report for the year ended December 31, 2006 (Commission file number 000-14804)). | ||||
4(q) | Form of Euro Medium-Term Note and Debt Security – Definitive Fixed Rate Bearer Note (Incorporated by reference to Exhibit 4(m) to GECS’ Form 10-K Report for the year ended December 31, 2006 (Commission file number 000-14804)). | ||||
4(r) | Form of Euro Medium-Term Note and Debt Security – Definitive Floating Rate Bearer Note (Incorporated by reference to Exhibit 4(n) to GECS’ Form 10-K Report for the year ended December 31, 2006 (Commission file number 000-14804)). | ||||
4(s) | Letter from the Senior Vice President and Chief Financial Officer of General Electric Company to General Electric Capital Corporation (GECC) dated September 15, 2006, with respect to returning dividends, distributions or other payments to GECC in certain circumstances described in the Indenture for Subordinated Debentures dated September 1, 2006, between GECC and the Bank of New York, as successor trustee (Incorporated by reference to Exhibit 4(c) to GECC’s Post-Effective Amendment No. 2 to Registration Statement on Form S-3, File No. 333-132807 (Commission file number 001-06461)). | ||||
4(t)
|
Agreement to furnish to the Securities and Exchange Commission upon request a copy of instruments defining the rights of holders of certain long-term debt of the registrant and consolidated subsidiaries.*
|
||||
10 | Amended and Restated Income Maintenance Agreement, dated October 29, 2009, between General Electric Company and General Electric Capital Corporation (Incorporated by reference to Exhibit 10 of GECC’s Form 10-Q Report for the quarterly period ended September 30, 2009 (Commission file number 001-06461)). | ||||
12(a) | Computation of Ratio of Earnings to Fixed Charges.* | ||||
12(b) | Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends.* | ||||
23 | Consent of Independent Registered Public Accounting Firm.* | ||||
24 | Power of Attorney.* | ||||
31(a) | Certification Pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.* | ||||
31(b) | Certification Pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.* | ||||
32 | Certification Pursuant to 18 U.S.C. Section 1350.* | ||||
99(a) | The consolidated financial statements of General Electric Company, set forth in the Annual Report on Form 10-K of General Electric Company (S.E.C. File No. 001-00035) for the year ended December 31, 2012, (pages 25 through 167) and Exhibit 12(a) (Ratio of Earnings to Fixed Charges) and 12(b) (Ratio of Earnings to Fixed Charges and Preferred Stock Dividends) of General Electric Company. | ||
101 | The following materials from General Electric Capital Corporation’s Annual Report on Form 10-K for the year ended December 31, 2012, formatted in XBRL (eXtensible Business Reporting Language); (i) Statement of Earnings for the years ended December 31, 2012, 2011 and 2010, (ii) Statement of Comprehensive Income for the years ended December 31, 2012, 2011 and 2010, (iii) Statement of Changes in Shareowners' Equity for the years ended December 31, 2012, 2011 and 2010, (iv) Statement of Financial Position at December 31, 2012 and 2011, (v) Statement of Cash Flows for the years ended December 31, 2012, 2011 and 2010, and (vi) the Notes to Consolidated Financial Statements | ||
For the years ended December 31 (In millions)
|
2012
|
2011
|
2010
|
|||||
Revenues
|
$
|
5,736
|
$
|
9,740
|
$
|
3,945
|
||
Expenses
|
||||||||
Interest
|
3,383
|
4,344
|
3,571
|
|||||
Operating and administrative
|
5,878
|
3,148
|
2,995
|
|||||
Provision for losses on financing receivables
|
40
|
109
|
1,030
|
|||||
Depreciation and amortization
|
242
|
192
|
193
|
|||||
Total expenses
|
9,543
|
7,793
|
7,789
|
|||||
Loss before income taxes and equity in earnings of affiliates
|
(3,807)
|
1,947
|
(3,844)
|
|||||
Income tax benefit
|
1,723
|
2,230
|
1,755
|
|||||
Equity in earnings of affiliates
|
8,299
|
2,333
|
4,244
|
|||||
Net earnings
|
6,215
|
6,510
|
2,155
|
|||||
Dividends
|
(6,549)
|
–
|
–
|
|||||
Other(a)
|
–
|
–
|
50
|
|||||
Retained earnings at January 1(b)
|
51,578
|
45,068
|
42,863
|
|||||
Retained earnings at December 31
|
$
|
51,244
|
$
|
51,578
|
$
|
45,068
|
||
(a)
|
Includes the effects of accretion of redeemable securities to their redemption value of $38 million in 2010.
|
(b)
|
The 2010 opening balance was adjusted as of January 1, 2010 for the cumulative effect of changes in accounting principles of $1,645 million related to the adoption of Accounting Standards Update (ASU) 2009-16 & 17.
|
|
See accompanying notes.
|
At December 31 (In millions, except share amounts)
|
2012
|
2011
|
|||
Assets
|
|||||
Cash and equivalents
|
$
|
16,892
|
$
|
13,482
|
|
Investment securities
|
8,938
|
8,716
|
|||
Financing receivables - net
|
42,420
|
50,822
|
|||
Investment in and advances to affiliates
|
222,867
|
255,652
|
|||
Property, plant and equipment - net
|
884
|
1,213
|
|||
Other assets
|
18,261
|
23,856
|
|||
Total assets
|
$
|
310,262
|
$
|
353,741
|
|
Liabilities and equity
|
|||||
Borrowings
|
$
|
218,969
|
$
|
267,426
|
|
Other liabilities
|
6,886
|
6,197
|
|||
Deferred income taxes
|
2,517
|
3,008
|
|||
Total liabilities
|
228,372
|
276,631
|
|||
Preferred stock, $0.01 par value (750,0000 shares authorized at
|
|||||
December 31, 2012 and 2011 and 40,000 shares and 0 shares issued
|
-
|
-
|
|||
and outstanding at December 31, 2012 and 2011, respectively)
|
|||||
Common stock, $14 par value (4,166,000 shares authorized at
|
|||||
December 31, 2012 and 2011 and 1,000 shares issued and
|
-
|
-
|
|||
outstanding at December 31, 2012 and 2011, respectively)
|
|||||
Accumulated other comprehensive income attributable to GECC
|
|||||
Investment securities
|
673
|
(33)
|
|||
Currency translation adjustments
|
(131)
|
(399)
|
|||
Cash flow hedges
|
(746)
|
(1,101)
|
|||
Benefit plans
|
(736)
|
(563)
|
|||
Additional paid-in capital
|
31,586
|
27,628
|
|||
Retained earnings
|
51,244
|
51,578
|
|||
Total shareowners' equity
|
81,890
|
77,110
|
|||
Total liabilities and equity
|
$
|
310,262
|
$
|
353,741
|
|
For the years ended December 31 (In millions)
|
2012
|
2011
|
2010
|
|||||
Cash from (used for) operating activities
|
$
|
(1,519)
|
$
|
5,386
|
$
|
(3,408)
|
||
Cash flows - investing activities
|
||||||||
Increase in loans to customers
|
(63,881)
|
(71,863)
|
(81,145)
|
|||||
Principal collections from customers - loans
|
69,620
|
78,261
|
89,835
|
|||||
Investment in equipment for financing leases
|
(1,012)
|
(696)
|
(1,447)
|
|||||
Principal collections from customers - financing leases
|
1,883
|
3,576
|
2,783
|
|||||
Net change in credit card receivables
|
1
|
(28)
|
(1,182)
|
|||||
Additions to property, plant and equipment
|
(658)
|
(892)
|
(1,073)
|
|||||
Dispositions of property, plant and equipment
|
979
|
811
|
871
|
|||||
Payments for principal businesses purchased
|
–
|
(50)
|
(559)
|
|||||
Proceeds from principal business dispositions
|
2,863
|
2,623
|
1,171
|
|||||
Increase in investment in and advances to affiliates
|
40,557
|
3,258
|
15,642
|
|||||
All other investing activities
|
5,818
|
1,399
|
(624)
|
|||||
Cash from (used for) investing activities
|
56,170
|
16,399
|
24,272
|
|||||
Cash flows - financing activities
|
||||||||
Net decrease in borrowings (maturities of 90 days or less)
|
(1,722)
|
371
|
(6,141)
|
|||||
Newly issued debt
|
||||||||
Long-term (longer than one year)
|
25,760
|
23,049
|
18,325
|
|||||
Repayments and other debt reductions:
|
||||||||
Short-term (91-365 days)
|
(67,725)
|
(42,693)
|
(48,818)
|
|||||
Long-term (longer than one year)
|
(4,802)
|
(1,671)
|
(1,140)
|
|||||
Non-recourse, leveraged leases
|
(163)
|
(206)
|
(341)
|
|||||
Proceeds from issuance of preferred stock
|
3,960
|
–
|
–
|
|||||
Dividends paid to shareowners
|
(6,549)
|
–
|
–
|
|||||
Other
|
–
|
–
|
(19)
|
|||||
Cash from (used for) financing activities
|
(51,241)
|
(21,150)
|
(38,134)
|
|||||
Increase (decrease) in cash and equivalents during year
|
3,410
|
635
|
(17,270)
|
|||||
Cash and equivalents at beginning of year
|
13,482
|
12,847
|
30,117
|
|||||
Cash and equivalents at end of year
|
$
|
16,892
|
$
|
13,482
|
$
|
12,847
|
||
|
See accompanying notes.
|
2012
|
||||||||||
Average
|
||||||||||
December 31 (Dollars in millions)
|
rate(a)
|
Maturities
|
2012
|
2011
|
||||||
Senior notes
|
3.28
|
2014-2055
|
$
|
128,809
|
$
|
139,869
|
||||
Subordinated notes(b)
|
2.63
|
2014-2037
|
4,947
|
4,845
|
||||||
Subordinated debentures(c)
|
5.78
|
2066-2067
|
7,286
|
7,215
|
||||||
Other
|
4,115
|
3,044
|
||||||||
$
|
145,157
|
$
|
154,973
|
|||||||
(a)
|
Based on year-end balances and year-end local currency interest rates, including the effects from hedging.
|
(b)
|
Included $300 million and $417 million of subordinated notes guaranteed by GE at December 31, 2012 and 2011, respectively, of which $117 million was included in current portion of long-term borrowings at December 31, 2011.
|
(c)
|
Subordinated debentures receive rating agency equity credit and were hedged at issuance to USD equivalent of $7,725 million.
|
General Electric Capital Corporation
|
|||
February 26, 2013
|
By: /s/ Michael A. Neal
|
||
Michael A. Neal
|
|||
Chief Executive Officer
|
Signature
|
Title
|
Date
|
|||||
/s/ Michael A. Neal
|
Chief Executive Officer
|
February 26, 2013
|
|||||
Michael A. Neal
|
(Principal Executive Officer)
|
||||||
/s/ Jeffrey S. Bornstein
|
Chief Financial Officer
|
February 26, 2013
|
|||||
Jeffrey S. Bornstein
|
(Principal Financial Officer)
|
||||||
/s/ Jamie S. Miller
|
Senior Vice President and Controller
|
February 26, 2013
|
|||||
Jamie S. Miller
|
(Principal Accounting Officer)
|
||||||
JEFFREY S. BORNSTEIN*
|
Director
|
||||||
BRACKETT B. DENNISTON III*
|
Director
|
||||||
JEFFREY R. IMMELT*
|
Director
|
||||||
MICHAEL A. NEAL*
|
Director
|
||||||
KEITH S. SHERIN*
RYAN A. ZANIN*
|
Director
Director
|
||||||
A MAJORITY OF THE BOARD OF DIRECTORS
|
|||||||
*By:
|
/s/ Jamie S. Miller
|
February 26, 2013
|
|||||
Jamie S. Miller
Attorney-in-fact
|
Subject:
|
General Electric Capital Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2012 – File No. 001-06461
|
Very truly yours,
GENERAL ELECTRIC CAPITAL CORPORATION
|
|||
By:
|
/s/ Kathryn A. Cassidy
|
||
Kathryn A. Cassidy
Senior Vice President Corporate Treasury
and Global Funding Operation
|
Years ended December 31,
|
||||||||||||||
(Dollars in millions)
|
2012
|
2011
|
2010
|
2009
|
2008
|
|||||||||
Earnings (loss)(a)
|
$
|
7,635
|
$
|
7,236
|
$
|
1,829
|
$
|
(2,962)
|
$
|
5,527
|
||||
Plus:
|
||||||||||||||
Interest included in expense(b)
|
11,697
|
13,866
|
14,510
|
16,840
|
23,028
|
|||||||||
One-third of rental expense(c)
|
187
|
205
|
212
|
267
|
169
|
|||||||||
Adjusted "earnings"(d)
|
$
|
19,519
|
$
|
21,307
|
$
|
16,551
|
$
|
14,145
|
$
|
28,724
|
||||
Fixed Charges:
|
||||||||||||||
Interest included in expense(b)
|
$
|
11,697
|
$
|
13,866
|
$
|
14,510
|
$
|
16,840
|
$
|
23,028
|
||||
Interest capitalized
|
26
|
25
|
39
|
39
|
65
|
|||||||||
One-third of rental expense(c)
|
187
|
205
|
212
|
267
|
169
|
|||||||||
Total fixed charges
|
$
|
11,910
|
$
|
14,096
|
$
|
14,761
|
$
|
17,146
|
$
|
23,262
|
||||
Ratio of earnings to fixed charges
|
1.64
|
1.51
|
1.12
|
0.82
|
1.23
|
|||||||||
(a)
|
Earnings (loss) before income taxes, noncontrolling interests, discontinued operations and undistributed earnings of equity investees.
|
(b)
|
Included interest on tax deficiencies.
|
(c)
|
Considered to be representative of interest factor in rental expense.
|
(d)
|
In accordance with Item 503 of SEC Regulation S-K, we are required to disclose the amount of earnings needed to achieve a one-to-one ratio of earnings to fixed charges. As of December 31, 2009, this amount was $3,001 million.
|
Years ended December 31,
|
||||||||||||||
(Dollars in millions)
|
2012
|
2011
|
2010
|
2009
|
2008
|
|||||||||
Earnings (loss)(a)
|
$
|
7,635
|
$
|
7,236
|
$
|
1,829
|
$
|
(2,962)
|
$
|
5,527
|
||||
Plus:
|
||||||||||||||
Interest included in expense(b)
|
11,697
|
13,866
|
14,510
|
16,840
|
23,028
|
|||||||||
One-third of rental expense(c)
|
187
|
205
|
212
|
267
|
169
|
|||||||||
Adjusted “earnings”(d)
|
$
|
19,519
|
$
|
21,307
|
$
|
16,551
|
$
|
14,145
|
$
|
28,724
|
||||
Fixed charges:
|
||||||||||||||
Interest included in expense(b)
|
$
|
11,697
|
$
|
13,866
|
$
|
14,510
|
$
|
16,840
|
$
|
23,028
|
||||
Interest capitalized
|
26
|
25
|
39
|
39
|
65
|
|||||||||
One-third of rental expense(c)
|
187
|
205
|
212
|
267
|
169
|
|||||||||
Total fixed charges
|
$
|
11,910
|
$
|
14,096
|
$
|
14,761
|
$
|
17,146
|
$
|
23,262
|
||||
Ratio of earnings to fixed charges
|
1.64
|
1.51
|
1.12
|
0.82
|
1.23
|
|||||||||
Preferred stock dividend requirements
|
$
|
123
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||
Ratio of earnings before provision for
|
||||||||||||||
income taxes to earnings from
|
||||||||||||||
continuing operations
|
1.07
|
1.13
|
0.69
|
(2.05)
|
0.72
|
|||||||||
Preferred stock dividend factor on
|
||||||||||||||
pre-tax basis
|
$
|
132
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
||||
Fixed charges
|
11,910
|
14,096
|
14,761
|
17,146
|
23,262
|
|||||||||
Total fixed charges and preferred
|
||||||||||||||
stock dividend requirements
|
$
|
12,042
|
$
|
14,096
|
$
|
14,761
|
$
|
17,146
|
$
|
23,262
|
||||
Ratio of earnings to combined fixed
|
||||||||||||||
charges and preferred stock dividends
|
1.62
|
1.51
|
1.12
|
0.82
|
1.23
|
|||||||||
(a)
|
Earnings (loss) before income taxes, noncontrolling interests, discontinued operations and undistributed earnings of equity investees.
|
(b)
|
Included interest on tax deficiencies.
|
(c)
|
Considered to be representative of interest factor in rental expense.
|
(d)
|
In accordance with Item 503 of SEC Regulation S-K, we are required to disclose the amount of earnings needed to achieve a one-to-one ratio of earnings to fixed charges. As of December 31, 2009, this amount was $3,001 million.
|
/s/ Michael A. Neal
|
/s/ Jeffrey S. Bornstein
|
|
Michael A. Neal
|
Jeffrey S. Bornstein
|
|
Chief Executive Officer
|
Chief Financial Officer
|
|
(Principal Executive Officer)
|
(Principal Financial Officer)
|
|
/s/ Jamie S. Miller
|
||
Jamie S. Miller
|
||
Senior Vice President and Controller
|
||
(Principal Accounting Officer)
|
||
/s/ Jeffrey S. Bornstein
|
/s/ Michael A. Neal
|
|
Jeffrey S. Bornstein,
|
Michael A. Neal,
|
|
Director
|
Director
|
|
/s/ Brackett B. Denniston III
|
/s/ Keith S. Sherin
|
|
Brackett B. Denniston III,
|
Keith S. Sherin,
|
|
Director
|
Director
|
|
/s/ Jeffrey R. Immelt
|
/s/ Ryan A. Zanin
|
|
Jeffrey R. Immelt,
|
Ryan A. Zanin,
|
|
Director
|
Director
|
|
I, Michael A. Neal, certify that:
|
||
1.
|
I have reviewed this annual report on Form 10-K of General Electric Capital Corporation;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Michael A. Neal
|
|
Michael A. Neal
|
|
Chief Executive Officer
|
I, Jeffrey S. Bornstein, certify that:
|
||
1.
|
I have reviewed this annual report on Form 10-K of General Electric Capital Corporation;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Jeffrey S. Bornstein
|
|
Jeffrey S. Bornstein
|
|
Chief Financial Officer
|
(1)
|
The report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the registrant.
|
February 26, 2013
|
|
/s/ Michael A. Neal
|
|
Michael A. Neal
Chief Executive Officer
|
|
/s/ Jeffrey S. Bornstein
|
|
Jeffrey S. Bornstein
Chief Financial Officer
|
Investment Contracts, Insurance Liabilities and Insurance Annuity Benefits (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Contracts Insurance Liabilities And Insurance Annuity Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investment Contracts Insurance Liabilities And Insurance Annuity Benefits [Table Text Block] |
|
Supplemental Cash Flows Information (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certain Supplemental Information Related to GE and GECC Cash Flows |
|
Assets and Liabilities of Businesses Held For Sale and Discontinued Operations (Discontinued Operations Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Sep. 30, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Operations | |||||||||||
Benefit (provision) for income taxes | $ (124) | $ (78) | $ (102) | $ (187) | $ (65) | $ (59) | $ (346) | $ (429) | $ (491) | $ (899) | $ 985 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent, Total | (1,186) | (74) | (965) | ||||||||
Disposal | |||||||||||
Losses from discontinued operations, net of tax | (305) | (111) | (553) | (217) | (240) | (64) | 195 | 35 | (1,186) | (74) | (965) |
Assets | |||||||||||
Loans and leases receivable, Gross | 273,936 | 295,037 | 273,936 | 295,037 | |||||||
Other Assets | 62,217 | 75,612 | 62,217 | 75,612 | |||||||
Assets of discontinued operations | 1,126 | 1,669 | 1,126 | 1,669 | |||||||
Liabilities | |||||||||||
All other liabilities | 16,050 | 17,334 | 16,050 | 17,334 | |||||||
Liabilities of discontinued operations | 2,275 | 1,471 | 2,275 | 1,471 | |||||||
Discontinued Operation Or Asset Disposal Component [Member]
|
|||||||||||
Operations | |||||||||||
Total revenues | (486) | 329 | 2,060 | ||||||||
Earnings (loss) from discontinued operations before income taxes | (612) | (187) | 118 | ||||||||
Benefit (provision) for income taxes | 169 | 91 | 101 | ||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent, Total | (443) | (96) | 219 | ||||||||
Disposal | |||||||||||
Gain (loss) on disposal before income taxes | (792) | (329) | (1,420) | ||||||||
Benefit for income taxes | 49 | 351 | 236 | ||||||||
Gain (loss) on disposal, net of taxes | (743) | 22 | (1,184) | ||||||||
Losses from discontinued operations, net of tax | (1,186) | (74) | (965) | ||||||||
Assets | |||||||||||
Cash and cash equivalents | 103 | 121 | 103 | 121 | |||||||
Loans and leases receivable, Gross | 3 | 521 | 3 | 521 | |||||||
Other | 1,020 | 1,027 | 1,020 | 1,027 | |||||||
Assets of discontinued operations | 1,126 | 1,669 | 1,126 | 1,669 | |||||||
Liabilities | |||||||||||
Deferred income taxes | 374 | 207 | 374 | 207 | |||||||
Other | 1,901 | 1,264 | 1,901 | 1,264 | |||||||
Liabilities of discontinued operations | $ 2,275 | $ 1,471 | $ 2,275 | $ 1,471 |
Income Taxes (Provision For Taxes) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Provision for Income Taxes | |||
Current tax expense (benefit) | $ 1,368 | $ 775 | $ (2,292) |
Deferred tax expense (benefit) from temporary differences | (877) | 124 | 1,307 |
Total | 491 | 899 | (985) |
U.S. earnings (loss) from continuing operations before income taxes | 4,618 | 3,111 | (174) |
Non-U.S. earnings (loss) from continuing operations before income taxes | 3,337 | 4,499 | 2,325 |
U.S. federal income tax expense (benefit) | (40) | (2,104) | (3,760) |
Non-U.S. jurisdiction income tax expense (benefit) | 1,460 | 3,032 | 1,589 |
Deferred U.S. federal income tax expense (benefit) | 30 | 1,613 | 2,099 |
Deferred non-U.S. federal income tax expense (benefit) | (834) | (1,620) | (913) |
Cumulative earning of non-U.S affiliates reinvested indefinitely | $ 72 | $ 68 | |
Number of income tax returns file annually | 5,900 | ||
Number of global taxing jurisdictions | 250 |
Variable Interest Entities (Unconsolidated Variable Interest Entities) (Details) (USD $)
In Millions, unless otherwise specified |
1 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2012
Unconsolidated VIEs [Member]
|
Jan. 31, 2013
PTL [Member]
|
Dec. 31, 2012
PTL [Member]
|
Dec. 31, 2012
PTL [Member]
Investment in Unconsolidated VIEs [Member]
|
Dec. 31, 2011
PTL [Member]
Investment in Unconsolidated VIEs [Member]
|
Dec. 31, 2012
All Other [Member]
Investment in Unconsolidated VIEs [Member]
|
Dec. 31, 2011
All Other [Member]
Investment in Unconsolidated VIEs [Member]
|
Dec. 31, 2012
Total [Member]
Investment in Unconsolidated VIEs [Member]
|
Dec. 31, 2011
Total [Member]
Investment in Unconsolidated VIEs [Member]
|
|
Variable Interest Entity [Line Items] | |||||||||||
Outstanding Debt Paid By Limited Partner To Company Financed Through Third Parties And Recapitalization | $ 5,392 | ||||||||||
Partnership interest | 825 | ||||||||||
Loans and advances | 1,218 | ||||||||||
Amount Of Outstanding Debt Repaid By Variable Interest Entity To Finance Subsidiary | repaid all | ||||||||||
Real Estate Investments, Net | 2,639 | ||||||||||
Debt Investment Fund | 5,030 | ||||||||||
Factored Receivables | 2,218 | ||||||||||
Other assets and investment securities | 2,080 | 7,038 | 8,306 | 7,318 | 10,386 | 14,356 | |||||
Financing receivables | 268,951 | 288,847 | 0 | 0 | 2,654 | 2,507 | 2,654 | 2,507 | |||
Total investment | 2,080 | 7,038 | 10,960 | 9,825 | 13,040 | 16,863 | |||||
Contractual obligations to fund new investments or guarantees | 140 | 600 | 2,462 | 2,244 | 2,602 | 2,844 | |||||
Revolving lines of credit | 0 | 1,356 | 41 | 92 | 41 | 1,448 | |||||
Total | $ 21,155 | $ 2,220 | $ 8,994 | $ 13,463 | $ 12,161 | $ 15,683 |
Supplemental Information About The Credit Quality Of Financing Receivables And Allowance For Losses On (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
|
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Commercial Portfolio Segment [Member]
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Information About Credit Quality Of Financing Receivables And Allowance For Losses On Financing Receivables [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Financing Receivables And Allowance For Losses [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due Financing Receivables [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual Loans |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impaired Loans And Reserves |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Quality Indicators |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate Portfolio Segment [Member]
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Information About Credit Quality Of Financing Receivables And Allowance For Losses On Financing Receivables [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Financing Receivables And Allowance For Losses [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due Financing Receivables [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual Loans |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impaired Loans And Reserves |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Quality Indicators |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Portfolio Segment [Member]
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Information About Credit Quality Of Financing Receivables And Allowance For Losses On Financing Receivables [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Financing Receivables And Allowance For Losses [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due Financing Receivables [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonaccrual Loans |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non US residential mortgages [Member]
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Information About Credit Quality Of Financing Receivables And Allowance For Losses On Financing Receivables [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Quality Indicators |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Installment And Revolving Credit [Member]
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Information About Credit Quality Of Financing Receivables And Allowance For Losses On Financing Receivables [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Quality Indicators |
|
Investment Securities (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments |
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Schedule of investments, by type and length in continuous loss position |
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Schedule of contractual maturities |
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Supplemental gross realized gains losses on available-for-sale investment securities |
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Assets and Liabilities of Businesses Held For Sale and Discontinued Operations (GE Money Japan Narrative) (Details)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
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Dec. 31, 2012
USD ($)
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Sep. 30, 2012
USD ($)
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Jun. 30, 2012
USD ($)
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Mar. 31, 2012
USD ($)
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Dec. 31, 2011
USD ($)
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Sep. 30, 2011
USD ($)
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Jun. 30, 2011
USD ($)
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Mar. 31, 2011
USD ($)
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Dec. 31, 2012
USD ($)
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Dec. 31, 2011
USD ($)
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Dec. 31, 2010
USD ($)
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Dec. 31, 2012
GE Money Japan [Member]
USD ($)
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Dec. 31, 2012
GE Money Japan [Member]
USD ($)
|
Dec. 31, 2011
GE Money Japan [Member]
USD ($)
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Dec. 31, 2010
GE Money Japan [Member]
USD ($)
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Dec. 31, 2012
GE Money Japan [Member]
JPY (¥)
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Dec. 31, 2012
GE Money Japan [Member]
Upper Limit [Member]
USD ($)
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Dec. 31, 2012
GE Money Japan [Member]
Lower Limit [Member]
USD ($)
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Financial Information For Discontinued Operations [Line Items] | ||||||||||||||||||
Tax Credit Carryforward, Date Of Expiration | 2017 | |||||||||||||||||
Other Tax Carryforward, Expiration Dates | 2019 | |||||||||||||||||
Threshold above which claims become company's responsibility | $ 3,000 | $ 3,000 | ¥ 258,000 | |||||||||||||||
Increase (Decrease) in Loss and Loss Adjustment Expense Reserve | 286 | 630 | ||||||||||||||||
Liability For Reimbursement Of Claims In Excess Of Statutory Interest Rate | 700 | |||||||||||||||||
Adverse Incoming Daily Claim Rate Reduction Assumption Sensitivity Test For Liability Calculation | 50.00% | 20.00% | ||||||||||||||||
Sensitivity Analysis Potential Increase (Decrease) To Estimated Contingent Liability | 400 | 75 | ||||||||||||||||
Loss from discontinued operations, net of taxes | 305 | 111 | 553 | 217 | 240 | 64 | (195) | (35) | 1,186 | 74 | 965 | 649 | 238 | 1,671 | ||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ (1,186) | $ (74) | $ (965) |
Borrowings and Bank Deposits (Long-term Debt Maturities) (Details) (USD $)
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12 Months Ended |
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Dec. 31, 2012
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Debt Disclosure [Abstract] | |
2013 | $ 44,264,000,000 |
2014 | 38,783,000,000 |
2015 | 36,252,000,000 |
2016 | 23,047,000,000 |
2017 | 24,775,000,000 |
Fixed and floating rate notes containing put options | 914,000,000 |
Banks extending committed credit lines | 51 |
Committed credit lines | 48,200,000,000 |
Revolving credit agreements | 30,300,000,000 |
Three hundred sixty four day revolving credit agreement | 17,900,000,000 |
Extension Period From Date Of Expiration In Term Out Feature Minimum | one |
Extension Period From Date Of Expiration In Term Out Feature Maximum | two |
Borrowings And Bank Deposits [Line Items] | |
Committed Credit Lines | 48,200,000,000 |
Parent Company [Member]
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Debt Disclosure [Abstract] | |
Committed credit lines | 12,000,000,000 |
Borrowings And Bank Deposits [Line Items] | |
Committed Credit Lines | $ 12,000,000,000 |
Revenues from Services (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
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Dec. 31, 2012
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Dec. 31, 2011
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Dec. 31, 2010
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Subsidiary Revenue From Services [Line Items] | |||
Interest On Loans | $ 19,074 | $ 20,056 | $ 20,810 |
Equipment leased to others | 10,855 | 11,343 | 11,116 |
Fees | 4,732 | 4,698 | 4,734 |
Investment Income | 2,630 | 2,500 | 2,185 |
Financing leases | 1,888 | 2,378 | 2,749 |
Premiums earned by insurance activities | 1,714 | 1,905 | 2,014 |
Net securitization gains | 0 | 0 | 0 |
Real estate investments | 1,709 | 1,625 | 1,240 |
Associated companies | 1,538 | 2,337 | 2,035 |
Other items | 1,780 | 2,078 | 2,440 |
Revenues from services (Note 12) | 45,920 | 48,920 | 49,323 |
Net other-than-temporary impairments on investment securities | 140 | 387 | 253 |
Garanti Bank [Member]
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Subsidiary Revenue From Services [Line Items] | |||
Equity Interest Percentage Sold | 18.60% | ||
Gain (Loss) on Sale of Equity Investments | $ 690 |
Operating and Administrative Expenses (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
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Dec. 31, 2011
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Dec. 31, 2010
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Component of Operating Other Cost and Expense [Line Items] | |||
Minimum rental commitments under noncancellable operating leases | $ 1,583 | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2013 | 318 | ||
2014 | 245 | ||
2015 | 201 | ||
2016 | 164 | ||
2017 | 136 | ||
Equipment For Sublease [Member]
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Component of Operating Other Cost and Expense [Line Items] | |||
Rental expense under operating leases | 151 | 159 | 184 |
Other Rental Expense [Member]
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Component of Operating Other Cost and Expense [Line Items] | |||
Rental expense under operating leases | $ 410 | $ 456 | $ 453 |
Investment Contracts, Insurance Liabilities and Insurance Annuity Benefits (Table) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
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Dec. 31, 2011
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Dec. 31, 2010
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Investment Contracts Insurance Liabilities And Insurance Annuity Benefits [Line Items] | |||
Investment contracts | $ 3,321 | $ 3,493 | |
Guaranteed investment contracts | 1,644 | 4,226 | |
Total investment contracts | 4,965 | 7,719 | |
Liability for Future Policy Benefits, Life | 20,427 | 19,257 | |
Unpaid claims and claims adjustment expenses | 3,304 | 3,222 | |
Total | 28,696 | 30,198 | |
Life insurance benefits, net-level-premium method using estimated yields, minimum | 3.00% | 3.00% | |
Life insurance benefits, net-level-premium method using estimated yields, maximum | 8.50% | 8.50% | |
Reinsurance recoverables | 2,000 | 2,000 | |
Reinsurance recoveries | 234 | 224 | 174 |
Reinsurance Recoverables Included In Other Receivables | $ 1,542 | $ 1,411 |
Variable Interest Entities
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Dec. 31, 2012
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Variable Interest Entities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | NOTE 17. VARIABLE INTEREST ENTITIES We use variable interest entities primarily to securitize financial assets and arrange other forms of asset-backed financing in the ordinary course of business. Except as noted below, investors in these entities only have recourse to the assets owned by the entity and not to our general credit. We do not have implicit support arrangements with any VIE. We did not provide non-contractual support for previously transferred financing receivables to any VIE in 2012 or 2011.
In evaluating whether we have the power to direct the activities of a VIE that most significantly impact its economic performance, we consider the purpose for which the VIE was created, the importance of each of the activities in which it is engaged and our decision-making role, if any, in those activities that significantly determine the entity's economic performance as compared to other economic interest holders. This evaluation requires consideration of all facts and circumstances relevant to decision-making that affects the entity's future performance and the exercise of professional judgment in deciding which decision-making rights are most important.
In determining whether we have the right to receive benefits or the obligation to absorb losses that could potentially be significant to the VIE, we evaluate all of our economic interests in the entity, regardless of form (debt, equity, management and servicing fees, and other contractual arrangements). This evaluation considers all relevant factors of the entity's design, including: the entity's capital structure, contractual rights to earnings (losses), subordination of our interests relative to those of other investors, contingent payments, as well as other contractual arrangements that have potential to be economically significant. The evaluation of each of these factors in reaching a conclusion about the potential significance of our economic interests is a matter that requires the exercise of professional judgment.
Consolidated Variable Interest Entities We consolidate VIEs because we have the power to direct the activities that significantly affect the VIEs economic performance, typically because of our role as either servicer or manager for the VIE. Our consolidated VIEs fall into three main groups, which are further described below:
The table below summarizes the assets and liabilities of consolidated VIEs described above.
Revenues from services from our consolidated VIEs were $6,638 million, $6,162 million and $6,914 million in 2012, 2011 and 2010, respectively. Related expenses consisted primarily of provisions for losses of $1,171 million, $1,146 million and $1,596 million in 2012, 2011 and 2010, respectively, and interest of $541 million, $593 million and $765 million in 2012, 2011 and 2010, respectively. These amounts do not include intercompany revenues and costs, principally fees and interest between GECC and the VIEs, which are eliminated in consolidation.
Investments in Unconsolidated Variable Interest Entities Our involvement with unconsolidated VIEs consists of the following activities: assisting in the formation and financing of the entity, providing recourse and/or liquidity support, servicing the assets and receiving variable fees for services provided. We are not required to consolidate these entities because the nature of our involvement with the activities of the VIEs does not give us power over decisions that significantly affect their economic performance.
Prior to June 30, 2012, the largest unconsolidated VIE with which we were involved was Penske Truck Leasing Co., L.P. (PTL), a joint venture and limited partnership formed in 1988 between Penske Truck Leasing Corporation (PTLC) and GE. PTLC is the sole general partner of PTL and an indirect wholly-owned subsidiary of Penske Corporation. PTL is engaged in truck leasing and support services, including full-service leasing, dedicated logistics support and contract maintenance programs, as well as rental operations serving commercial and consumer customers. Our direct and indirect interest in PTL is accounted for using the equity method. During the second quarter of 2012, PTL effected a recapitalization and subsequently acquired third-party financing which, through the fourth quarter of 2012, was used to repay $5,392 million of its outstanding debt owed to GECC. At December 31, 2012, our direct and indirect investment in PTL of $2,080 million primarily comprised partnership interests of $825 million and loans and advances of $1,218 million. During the first quarter of 2013, PTL repaid all of its outstanding debt owed to GECC.
Our largest exposure to any single unconsolidated VIE at December 31, 2012 is an investment in asset-backed securities issued by a senior secured loan fund, which invests in high-quality senior secured debt of various middle-market companies ($5,030 million). Other significant unconsolidated VIEs include investments in real estate entities ($2,639 million), which generally consist of passive limited partnership investments in tax-advantaged, multi-family real estate and investments in various European real estate entities; and exposures to joint ventures that purchase factored receivables ($2,218 million). The vast majority of our other unconsolidated entities consist of passive investments in various asset-backed financing entities.
The classification of our variable interests in these entities in our financial statements is based on the nature of the entity and the type of investment we hold. Variable interests in partnerships and corporate entities are classified as either equity method or cost method investments. In the ordinary course of business, we also make investments in entities in which we are not the primary beneficiary but may hold a variable interest such as limited partner interests or mezzanine debt investments. These investments are classified in two captions in our financial statements: “Other assets” for investments accounted for under the equity method, and “Financing receivables – net” for debt financing provided to these entities. Our investments in unconsolidated VIEs at December 31, 2012 and December 31, 2011 follow.
In addition to the entities included in the table above, we also hold passive investments in RMBS, CMBS and ABS issued by VIEs. Such investments were, by design, investment grade at issuance and held by a diverse group of investors. Further information about such investments is provided in Note 3. |
Quarterly Information (Tables)
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Dec. 31, 2012
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Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quaterly Information |
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Revenues from Services (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Financial Services Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GECC Revenues from services |
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Financial Instruments (Net investment hedges in foreign operations) (Details) (Net Investment Hedge [Member], USD $)
In Millions, unless otherwise specified |
12 Months Ended | |
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Dec. 31, 2012
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Dec. 31, 2011
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Net investment hedges in foreign operation | ||
Hedge ineffectiveness gain (loss) | $ (874) | $ (1,345) |
Foreign Exchange Contract [Member]
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Net investment hedges in foreign operation | ||
Gain (loss) recognized in AOCI | (2,905) | 1,232 |
Gain (loss) reclassified from AOCI into earnings | $ 27 | $ (716) |
Other Assets (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All Other Assets |
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Property, Plant and Equipment (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
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Dec. 31, 2012
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Dec. 31, 2011
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Dec. 31, 2010
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Property, Plant and Equipment [Line Items] | |||
Original cost | $ 80,844 | $ 75,034 | |
Property, plant and equipment - net | 53,673 | 51,419 | |
Land and improvements, buildings, structures and related equipment [Member]
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Property, Plant and Equipment [Line Items] | |||
Original cost | 2,624 | 3,110 | |
Property, plant and equipment - net | 1,074 | 1,499 | |
Depreciable lives-new (in years), minimum | 1 | ||
Depreciable lives-new (in years), maximum | 36 | ||
Equipment Leased to Other Party [Member]
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Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 6,243 | 6,253 | 6,786 |
Equipment Leased to Other Party [Member] | Air Transportation Equipment [Member]
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Property, Plant and Equipment [Line Items] | |||
Original cost | 49,954 | 46,240 | |
Property, plant and equipment - net | 36,231 | 34,271 | |
Depreciable lives-new (in years), minimum | 19 | ||
Depreciable lives-new (in years), maximum | 21 | ||
Impairment of Long-Lived Assets Held-for-use | 242 | 301 | |
Equipment Leased to Other Party [Member] | Vehicles [Member]
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Property, Plant and Equipment [Line Items] | |||
Original cost | 17,574 | 15,278 | |
Property, plant and equipment - net | 9,263 | 8,772 | |
Depreciable lives-new (in years), minimum | 1 | ||
Depreciable lives-new (in years), maximum | 28 | ||
Equipment Leased to Other Party [Member] | Railroad Transportation Equipment [Member]
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Property, Plant and Equipment [Line Items] | |||
Original cost | 4,210 | 4,324 | |
Property, plant and equipment - net | 2,746 | 2,853 | |
Depreciable lives-new (in years), minimum | 4 | ||
Depreciable lives-new (in years), maximum | 50 | ||
Equipment Leased to Other Party [Member] | Construction and manufacturing [Member]
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Property, Plant and Equipment [Line Items] | |||
Original cost | 3,055 | 2,644 | |
Property, plant and equipment - net | 2,069 | 1,670 | |
Depreciable lives-new (in years), minimum | 1 | ||
Depreciable lives-new (in years), maximum | 30 | ||
Equipment Leased to Other Party [Member] | Other Machinery and Equipment [Member]
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Property, Plant and Equipment [Line Items] | |||
Original cost | 3,427 | 3,438 | |
Property, plant and equipment - net | 2,290 | 2,354 | |
Depreciable lives-new (in years), minimum | 3 | ||
Depreciable lives-new (in years), maximum | 27 | ||
Equipment Leased to Other Party [Member] | Leased To Parent [Member]
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Property, Plant and Equipment [Line Items] | |||
Original cost | 1,467 | 1,570 | |
Less accumulated depreciation and amortization | $ 452 | $ 445 |
Investment Securities (Investments, by type and length in continuous loss position) (Details) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2012
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Dec. 31, 2011
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Domestic Corporate Debt Securities [Member]
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Investment [Line Items] | ||
Estimated fair value, less than 12 months | $ 434 | $ 1,435 |
Gross unrealized losses, less than 12 months | (7) | (241) |
Estimated fair value, 12 months or more | 813 | 836 |
Gross unrealized losses, 12 months or more | (295) | (169) |
US States and Political Subdivisions Debt Securities [Member]
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Investment [Line Items] | ||
Estimated fair value, less than 12 months | 146 | 87 |
Gross unrealized losses, less than 12 months | (2) | (1) |
Estimated fair value, 12 months or more | 326 | 307 |
Gross unrealized losses, 12 months or more | (111) | (142) |
Residential Mortgage Backed Securities [Member]
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Investment [Line Items] | ||
Estimated fair value, less than 12 months | 98 | 219 |
Gross unrealized losses, less than 12 months | (1) | (9) |
Estimated fair value, 12 months or more | 691 | 825 |
Gross unrealized losses, 12 months or more | (118) | (277) |
Commercial Mortgage Backed Securities [Member]
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Investment [Line Items] | ||
Estimated fair value, less than 12 months | 37 | 244 |
Gross unrealized losses, less than 12 months | 0 | (23) |
Estimated fair value, 12 months or more | 979 | 1,320 |
Gross unrealized losses, 12 months or more | (95) | (224) |
Asset-backed Securities [Member]
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Investment [Line Items] | ||
Estimated fair value, less than 12 months | 18 | 100 |
Gross unrealized losses, less than 12 months | (1) | (7) |
Estimated fair value, 12 months or more | 658 | 850 |
Gross unrealized losses, 12 months or more | (76) | (157) |
Foreign Corporate Debt Securities [Member]
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Investment [Line Items] | ||
Estimated fair value, less than 12 months | 167 | 330 |
Gross unrealized losses, less than 12 months | (8) | (28) |
Estimated fair value, 12 months or more | 602 | 607 |
Gross unrealized losses, 12 months or more | (118) | (179) |
Foreign Government Debt Securities [Member]
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Investment [Line Items] | ||
Estimated fair value, less than 12 months | 201 | 906 |
Gross unrealized losses, less than 12 months | (1) | (5) |
Estimated fair value, 12 months or more | 37 | 203 |
Gross unrealized losses, 12 months or more | (2) | (81) |
US Treasury and Government [Member]
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Investment [Line Items] | ||
Estimated fair value, less than 12 months | 0 | 502 |
Gross unrealized losses, less than 12 months | 0 | 0 |
Estimated fair value, 12 months or more | 0 | 0 |
Gross unrealized losses, 12 months or more | 0 | 0 |
Retained Interest [Member]
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Investment [Line Items] | ||
Estimated fair value, less than 12 months | 3 | 0 |
Gross unrealized losses, less than 12 months | 0 | 0 |
Estimated fair value, 12 months or more | 0 | 0 |
Gross unrealized losses, 12 months or more | 0 | 0 |
Equity Securities [Member]
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Investment [Line Items] | ||
Estimated fair value, less than 12 months | 26 | 440 |
Gross unrealized losses, less than 12 months | (3) | (38) |
Estimated fair value, 12 months or more | 0 | 0 |
Gross unrealized losses, 12 months or more | 0 | 0 |
Total [Member]
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Investment [Line Items] | ||
Estimated fair value, less than 12 months | 1,130 | 4,263 |
Gross unrealized losses, less than 12 months | (23) | (352) |
Estimated fair value, 12 months or more | 4,106 | 4,948 |
Gross unrealized losses, 12 months or more | $ (815) | $ (1,229) |
Variable Interest Entities (Tables)
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Dec. 31, 2012
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Variable Interest Entities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities |
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Unconsolidated VIE |
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Summary of Significant Accounting Policies
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12 Months Ended |
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Dec. 31, 2012
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Summary of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | General Electric Capital Corporation and consolidated affiliates Notes to Consolidated Financial Statements NOTE 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Principles Our financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP). Consolidation At December 31, 2012, all of our outstanding common stock was owned by General Electric Company (GE Company or GE). Our financial statements consolidate all of our affiliates – entities in which we have a controlling financial interest, most often because we hold a majority voting interest. We also consolidate the economic interests we hold in certain businesses within companies in which we hold a voting equity interest and are majority owned by our ultimate parent, but which we have agreed to actively manage and control.
To determine if we hold a controlling financial interest in an entity we first evaluate if we are required to apply the variable interest entity (VIE) model to the entity, otherwise the entity is evaluated under the voting interest model. Where we hold current or potential rights that give us the power to direct the activities of a VIE that most significantly impact the VIE's economic performance combined with a variable interest that gives us the right to receive potentially significant benefits or the obligation to absorb potentially significant losses, we have a controlling financial interest in that VIE. Rights held by others to remove the party with power over the VIE are not considered unless one party can exercise those rights unilaterally. When changes occur to the design of an entity we reconsider whether it is subject to the VIE model. We continuously evaluate whether we have a controlling financial interest in a VIE.
We hold a controlling financial interest in other entities where we currently hold, directly or indirectly, more than 50% of the voting rights or where we exercise control through substantive participating rights or as a general partner. Where we are a general partner we consider substantive removal rights held by other partners in determining if we hold a controlling financial interest. We reevaluate whether we have a controlling financial interest in these entities when our voting or substantive participating rights change.
Associated companies are unconsolidated VIEs and other entities in which we do not have a controlling financial interest, but over which we have significant influence, most often because we hold a voting interest of 20% to 50%. Associated companies are accounted for as equity method investments. Results of associated companies are presented on a one-line basis. Investments in, and advances to, associated companies are presented on a one-line basis in the caption “Other assets” in our Statement of Financial Position, net of allowance for losses, that represents our best estimate of probable losses inherent in such assets. Financial Statement Presentation We have reclassified certain prior-year amounts to conform to the current-year's presentation.
Financial data and related measurements are presented in the following categories:
Consolidated - This represents the adding together of all affiliates, giving effect to the elimination of transactions between affiliates.
Operating Segments - These comprise our five businesses, focused on the broad markets they serve: Commercial Lending and Leasing (CLL), Consumer, Real Estate, Energy Financial Services and GE Capital Aviation Services (GECAS). Prior-period information has been reclassified to be consistent with how we managed our businesses in 2012.
Unless otherwise indicated, information in these notes to consolidated financial statements relates to continuing operations. Certain of our operations have been presented as discontinued. See Note 2.
On February 22, 2012, our former parent, General Electric Capital Services, Inc. (GECS), merged with and into GECC. The merger simplified GE's financial services' corporate structure by consolidating financial services entities and assets within our organization and simplifying Securities and Exchange Commission and regulatory reporting. Upon completion of the merger, (i) all outstanding shares of GECC common stock were cancelled, (ii) all outstanding GECS common stock and all GECS preferred stock held by GE were converted into an aggregate of 1,000 shares of GECC common stock, and (iii) all treasury shares of GECS and all outstanding preferred stock of GECS held by GECC were cancelled. As a result, GECC became the surviving corporation, assumed all of GECS' rights and obligations and became wholly-owned directly by GE.
Because both GECS and GECC were wholly-owned either directly or indirectly by GE, the merger was accounted for as a transfer of assets between entities under common control. Transfers of net assets or exchanges of shares between entities under common control are accounted for at historical value, and as if the transfer occurred at the beginning of the period. Prior period results are retrospectively adjusted to furnish comparative information. GECC's continuing operations now include the run-off insurance operations previously held and managed in our former parent, GECS, and which are reported in corporate items and eliminations. The operating businesses that are reported as segments, including CLL, Consumer, Real Estate, Energy Financial Services and GECAS, are not affected by the merger. Unless otherwise indicated, references to GECC and the GE Capital segment in this Form 10-K Report relate to the entity or segment as they exist subsequent to the February 22, 2012 merger.
The effects of translating to U.S. dollars the financial statements of non-U.S. affiliates whose functional currency is the local currency are included in shareowners' equity. Asset and liability accounts are translated at year-end exchange rates, while revenues and expenses are translated at average rates for the respective periods.
Preparing financial statements in conformity with U.S. GAAP requires us to make estimates based on assumptions about current, and for some estimates future, economic and market conditions (for example, unemployment, market liquidity, the real estate market, etc.), which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current conditions and how we expect them to change in the future, as appropriate, it is reasonably possible that in 2013 actual conditions could be worse than anticipated in those estimates, which could materially affect our results of operations and financial position. Among other effects, such changes could result in future impairments of investment securities, goodwill, intangibles and long-lived assets, incremental losses on financing receivables, establishment of valuation allowances on deferred tax assets and increased tax liabilities. Sales of Goods We record all sales of goods only when a firm sales agreement is in place, delivery has occurred and collectibility of the fixed or determinable sales price is reasonably assured. If customer acceptance of goods is not assured, we record sales only upon formal customer acceptance. Revenues from Services (Earned Income) We use the interest method to recognize income on loans. Interest on loans includes origination, commitment and other non-refundable fees related to funding (recorded in earned income on the interest method). We stop accruing interest at the earlier of the time at which collection of an account becomes doubtful or the account becomes 90 days past due, and at that time, previously recognized interest income that was accrued but not collected from the borrower is reversed, unless the terms of the loan agreement permit capitalization of accrued interest to the principal balance. Although we stop accruing interest in advance of payments, we recognize interest income as cash is collected when appropriate, provided the amount does not exceed that which would have been earned at the historical effective interest rate; otherwise, payments received are applied to reduce the principal balance of the loan.
We resume accruing interest on nonaccrual, non-restructured commercial loans only when (a) payments are brought current according to the loan's original terms and (b) future payments are reasonably assured. When we agree to restructured terms with the borrower, we resume accruing interest only when it is reasonably assured that we will recover full contractual payments, and such loans pass underwriting reviews equivalent to those applied to new loans. We resume accruing interest on nonaccrual consumer loans when the customer's account is less than 90 days past due and collection of such amounts is probable. Interest accruals on modified consumer loans that are not considered to be troubled debt restructurings (TDRs) may return to current status (re-aged) only after receipt of at least three consecutive minimum monthly payments or the equivalent cumulative amount, subject to a re-aging limitation of once a year, or twice in a five-year period.
We recognize financing lease income on the interest method to produce a level yield on funds not yet recovered. Estimated unguaranteed residual values are based upon management's best estimates of the value of the leased asset at the end of the lease term. We use various sources of data in determining this estimate, including information obtained from third parties, which is adjusted for the attributes of the specific asset under lease. Guarantees of residual values by unrelated third parties are considered part of minimum lease payments. Significant assumptions we use in estimating residual values include estimated net cash flows over the remaining lease term, anticipated results of future remarketing, and estimated future component part and scrap metal prices, discounted at an appropriate rate.
We recognize operating lease income on a straight-line basis over the terms of underlying leases.
Fees include commitment fees related to loans that we do not expect to fund and line-of-credit fees. We record these fees in earned income on a straight-line basis over the period to which they relate. We record syndication fees in earned income at the time related services are performed, unless significant contingencies exist. Depreciation and Amortization The cost of our equipment leased to others on operating leases is depreciated on a straight-line basis to estimated residual value over the lease term or over the estimated economic life of the equipment.
The cost of acquired real estate investments is depreciated on a straight-line basis to the estimated salvage value over the expected useful life or the estimated proceeds upon sale of the investment at the end of the expected holding period if that approach produces a higher measure of depreciation expense.
The cost of intangible assets is generally amortized on a straight-line basis over the asset's estimated economic life. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. See Notes 5 and 6. Losses on Financing Receivables Losses on financing receivables are recognized when they are incurred, which requires us to make our best estimate of probable losses inherent in the portfolio. The method for calculating the best estimate of losses depends on the size, type and risk characteristics of the related financing receivable. Such an estimate requires consideration of historical loss experience, adjusted for current conditions, and judgments about the probable effects of relevant observable data, including present economic conditions such as delinquency rates, financial health of specific customers and market sectors, collateral values (including housing price indices as applicable), and the present and expected future levels of interest rates. The underlying assumptions, estimates and assessments we use to provide for losses are updated periodically to reflect our view of current conditions and are subject to the regulatory examination process, which can result in changes to our assumptions. Changes in such estimates can significantly affect the allowance and provision for losses. It is possible that we will experience credit losses that are different from our current estimates. Write-offs are deducted from the allowance for losses when we judge the principal to be uncollectible and subsequent recoveries are added to the allowance at the time cash is received on a written-off account.
"Impaired" loans are defined as larger balance or restructured loans for which it is probable that the lender will be unable to collect all amounts due according to the original contractual terms of the loan agreement.
“Troubled debt restructurings” (TDRs) are those loans for which we have granted a concession to a borrower experiencing financial difficulties where we do not receive adequate compensation. Such loans are classified as impaired, and are individually reviewed for specific reserves.
“Nonaccrual financing receivables” are those on which we have stopped accruing interest. We stop accruing interest at the earlier of the time at which collection of an account becomes doubtful or the account becomes 90 days past due. Although we stop accruing interest in advance of payments, we recognize interest income as cash is collected when appropriate provided the amount does not exceed that which would have been earned at the historical effective interest rate. Recently restructured financing receivables are not considered delinquent when payments are brought current according to the restructured terms, but may remain classified as nonaccrual until there has been a period of satisfactory payment performance by the borrower and future payments are reasonably assured of collection.
“Nonearning financing receivables” are a subset of nonaccrual financing receivables for which cash payments are not being received or for which we are on the cost recovery method of accounting (i.e., any payments are accounted for as a reduction of principal). This category excludes loans purchased at a discount (unless they have deteriorated post acquisition). Under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 310, Receivables, these loans are initially recorded at fair value and accrete interest income over the estimated life of the loan based on reasonably estimable cash flows even if the underlying loans are contractually delinquent at acquisition.
“Delinquent” receivables are those that are 30 days or more past due based on their contractual terms.
The same financing receivable may meet more than one of the definitions above. Accordingly, these categories are not mutually exclusive and it is possible for a particular loan to meet the definitions of a TDR, impaired loan, nonaccrual loan and nonearning loan and be included in each of these categories. The categorization of a particular loan also may not be indicative of the potential for loss.
Our consumer loan portfolio consists of smaller-balance, homogeneous loans, including credit card receivables, installment loans, auto loans and leases and residential mortgages. We collectively evaluate each portfolio for impairment quarterly. The allowance for losses on these receivables is established through a process that estimates the probable losses inherent in the portfolio based upon statistical analyses of portfolio data. These analyses include migration analysis, in which historical delinquency and credit loss experience is applied to the current aging of the portfolio, together with other analyses that reflect current trends and conditions. We also consider our historical loss experience to date based on actual defaulted loans and overall portfolio indicators including nonearning loans, trends in loan volume and lending terms, credit policies and other observable environmental factors such as unemployment rates and home price indices.
Our commercial loan and lease portfolio consists of a variety of loans and leases, including both larger-balance, non-homogeneous loans and leases and smaller-balance homogeneous loans and leases. Losses on such loans and leases are recorded when probable and estimable. We routinely evaluate our entire portfolio for potential specific credit or collection issues that might indicate an impairment.
For larger-balance, non-homogeneous loans and leases, we consider the financial status, payment history, collateral value, industry conditions and guarantor support related to specific customers. Any delinquencies or bankruptcies are indications of potential impairment requiring further assessment of collectibility. We routinely receive financial as well as rating agency reports on our customers, and we elevate for further attention those customers whose operations we judge to be marginal or deteriorating. We also elevate customers for further attention when we observe a decline in collateral values for asset-based loans. While collateral values are not always available, when we observe such a decline, we evaluate relevant markets to assess recovery alternatives – for example, for real estate loans, relevant markets are local; for commercial aircraft loans, relevant markets are global.
Measurement of the loss on our impaired commercial loans is based on the present value of expected future cash flows discounted at the loan's effective interest rate or the fair value of collateral, net of expected selling costs, if the loan is determined to be collateral dependent. We determine whether a loan is collateral dependent if the repayment of the loan is expected to be provided solely by the underlying collateral. Our review process can often result in reserves being established in advance of a modification of terms or designation as a TDR. After providing for specific incurred losses, we then determine an allowance for losses that have been incurred in the balance of the portfolio but cannot yet be identified to a specific loan or lease. This estimate is based upon various statistical analyses considering historical and projected default rates and loss severity and aging, as well as our view on current market and economic conditions. It is prepared by each respective line of business. For Real Estate, this includes assessing the probability of default and the loss given default based on loss history of our portfolio for loans with similar loan metrics and attributes.
We consider multiple factors in evaluating the adequacy of our allowance for losses on Real Estate financing receivables, including loan-to-value ratios, collateral values at the individual loan level, debt service coverage ratios, delinquency status, and economic factors including interest rate and real estate market forecasts. In addition to evaluating these factors, we deem a Real Estate loan to be impaired if its projected loan-to-value ratio at maturity is in excess of 100%, even if the loan is currently paying in accordance with its contractual terms. Substantially all of the loans in the Real Estate portfolio are considered collateral dependent and are measured for impairment based on the fair value of collateral. If foreclosure is deemed probable or if repayment is dependent solely on the sale of collateral, we also include estimated selling costs in our reserve. Collateral values for our Real Estate loans are determined based upon internal cash flow estimates discounted at an appropriate rate and corroborated by external appraisals, as appropriate. Collateral valuations are routinely monitored and updated annually, or more frequently for changes in collateral, market and economic conditions. Further discussion on determination of fair value is in the Fair Value Measurements section below.
Experience is not available for new products; therefore, while we are developing that experience, we set loss allowances based on our experience with the most closely analogous products in our portfolio.
Our loss mitigation strategy intends to minimize economic loss and, at times, can result in rate reductions, principal forgiveness, extensions, forbearance or other actions, which may cause the related loan to be classified as a TDR.
We utilize certain loan modification programs for borrowers experiencing temporary financial difficulties in our Consumer loan portfolio. These loan modification programs are primarily concentrated in our non-U.S. residential mortgage and non-U.S. installment and revolving portfolios and include short-term (three months or less) interest rate reductions and payment deferrals, which were not part of the terms of the original contract. We sold our U.S. residential mortgage business in 2007 and as such, do not participate in the U.S. government-sponsored mortgage modification programs.
Our allowance for losses on financing receivables on these modified consumer loans is determined based upon a formulaic approach that estimates the probable losses inherent in the portfolio based upon statistical analyses of the portfolio. Data related to redefault experience is also considered in our overall reserve adequacy review. Once the loan has been modified, it returns to current status (re-aged) only after receipt of at least three consecutive minimum monthly payments or the equivalent cumulative amount, subject to a re-aging limitation of once a year, or twice in a five-year period in accordance with the Federal Financial Institutions Examination Council guidelines on Uniform Retail Credit Classification and Account Management policy issued in June 2000. We believe that the allowance for losses would not be materially different had we not re-aged these accounts.
For commercial loans, we evaluate changes in terms and conditions to determine whether those changes meet the criteria for classification as a TDR on a loan-by-loan basis. In Commercial Lending and Leasing (CLL), these changes primarily include: changes to covenants, short-term payment deferrals and maturity extensions. For these changes, we receive economic consideration, including additional fees and/or increased interest rates, and evaluate them under our normal underwriting standards and criteria. Changes to Real Estate's loans primarily include maturity extensions, principal payment acceleration, changes to collateral terms, and cash sweeps, which are in addition to, or sometimes in lieu of, fees and rate increases. The determination of whether these changes to the terms and conditions of our commercial loans meet the TDR criteria includes our consideration of all of the relevant facts and circumstances. When the borrower is experiencing financial difficulty, we carefully evaluate these changes to determine whether they meet the form of a concession. In these circumstances, if the change is deemed to be a concession, we classify the loan as a TDR.
When we repossess collateral in satisfaction of a loan, we write down the receivable against the allowance for losses. Repossessed collateral is included in the caption “Other assets” in the Statement of Financial Position and carried at the lower of cost or estimated fair value less costs to sell.
For Consumer loans, we write off unsecured closed-end installment loans when they are 120 days contractually past due and unsecured open-ended revolving loans at 180 days contractually past due. We write down consumer loans secured by collateral other than residential real estate when such loans are 120 days past due. Consumer loans secured by residential real estate (both revolving and closed-end loans) are written down to the fair value of collateral, less costs to sell, no later than when they become 360 days past due. Unsecured consumer loans in bankruptcy are written off within 60 days of notification of filing by the bankruptcy court or within contractual write-off periods, whichever occurs earlier.
Write-offs on larger balance impaired commercial loans are based on amounts deemed uncollectible and are reviewed quarterly. Write-offs are determined based on the consideration of many factors, such as expectations of the workout plan or restructuring of the loan, valuation of the collateral and the prioritization of our claim in bankruptcy. Write-offs are recognized against the allowance for losses at the earlier of transaction confirmation (e.g., discounted pay-off, restructuring, foreclosure, etc.) or not later than 360 days after initial recognition of a specific reserve for a collateral dependent loan. If foreclosure is probable, the write-off is determined based on the fair value of the collateral less costs to sell. Smaller balance, homogeneous commercial loans are written off at the earlier of when deemed uncollectible or at 180 days past due. Partial Sales of Business Interests Gains or losses on sales of affiliate shares where we retain a controlling financial interest are recorded in equity. Gains or losses on sales that result in our loss of a controlling financial interest are recorded in earnings along with remeasurement gains or losses on any investments in the entity that we retained. Cash and Equivalents Debt securities and money market instruments with original maturities of three months or less are included in cash equivalents unless designated as available-for-sale and classified as investment securities. Investment Securities We report investments in debt and marketable equity securities, and certain other equity securities, at fair value. See Note 14 for further information on fair value. Unrealized gains and losses on available-for-sale investment securities are included in shareowners' equity, net of applicable taxes and other adjustments. We regularly review investment securities for impairment using both quantitative and qualitative criteria.
For debt securities, if we do not intend to sell the security or it is not more likely than not that we will be required to sell the security before recovery of our amortized cost, we evaluate other qualitative criteria to determine whether we do not expect to recover the amortized cost basis of the security, such as the financial health of and specific prospects for the issuer, including whether the issuer is in compliance with the terms and covenants of the security. We also evaluate quantitative criteria including determining whether there has been an adverse change in expected future cash flows. If we do not expect to recover the entire amortized cost basis of the security, we consider the security to be other-than-temporarily impaired, and we record the difference between the security's amortized cost basis and its recoverable amount in earnings and the difference between the security's recoverable amount and fair value in other comprehensive income. If we intend to sell the security or it is more likely than not we will be required to sell the security before recovery of its amortized cost basis, the security is also considered other-than-temporarily impaired and we recognize the entire difference between the security's amortized cost basis and its fair value in earnings. For equity securities, we consider the length of time and magnitude of the amount that each security is in an unrealized loss position. If we do not expect to recover the entire amortized cost basis of the security, we consider the security to be other-than-temporarily impaired, and we record the difference between the security's amortized cost basis and its fair value in earnings.
Realized gains and losses are accounted for on the specific identification method. Unrealized gains and losses on investment securities classified as trading and certain retained interests are included in earnings. Inventories All inventories are stated at the lower of cost or realizable values. Our inventories consist of finished products held for sale; cost is determined on a first-in, first-out basis. Intangible Assets We do not amortize goodwill, but test it at least annually for impairment at the reporting unit level. A reporting unit is the operating segment, or a business one level below that operating segment (the component level) if discrete financial information is prepared and regularly reviewed by segment management. However, components are aggregated as a single reporting unit if they have similar economic characteristics. We recognize an impairment charge if the carrying amount of a reporting unit exceeds its fair value and the carrying amount of the reporting unit's goodwill exceeds the implied fair value of that goodwill. We use discounted cash flows to establish fair values. When available and as appropriate, we use comparative market multiples to corroborate discounted cash flow results. When all or a portion of a reporting unit is disposed, goodwill is allocated to the gain or loss on disposition based on the relative fair values of the business disposed and the portion of the reporting unit that will be retained.
We amortize the cost of other intangibles over their estimated useful lives. The cost of intangible assets is generally amortized on a straight-line basis over the asset's estimated economic life. Amortizable intangible assets are tested for impairment based on undiscounted cash flows and, if impaired, written down to fair value based on either discounted cash flows or appraised values. Investment Contracts, Insurance Liabilities and Insurance Annuity Benefits Certain entities, which we consolidate, provide guaranteed investment contracts, primarily to states, municipalities and municipal authorities.
Our insurance activities also include providing insurance and reinsurance for life and health risks and providing certain annuity products. Two primary product groups are provided: traditional insurance contracts and investment contracts. Insurance contracts are contracts with significant mortality and/or morbidity risks, while investment contracts are contracts without such risks.
For short-duration insurance contracts, including accident and health insurance, we report premiums as earned income over the terms of the related agreements, generally on a pro-rata basis. For traditional long-duration insurance contracts including long-term care, term, whole life and annuities payable for the life of the annuitant, we report premiums as earned income when due.
Premiums received on investment contracts (including annuities without significant mortality risk) are not reported as revenues but rather as deposit liabilities. We recognize revenues for charges and assessments on these contracts, mostly for mortality, contract initiation, administration and surrender. Amounts credited to policyholder accounts are charged to expense.
Liabilities for traditional long-duration insurance contracts represent the present value of such benefits less the present value of future net premiums based on mortality, morbidity, interest and other assumptions at the time the policies were issued or acquired. Liabilities for investment contracts equal the account value, that is, the amount that accrues to the benefit of the contract or policyholder including credited interest and assessments through the financial statement date. For guaranteed investment contracts, the liability is also adjusted as a result of fair value hedging activity.
Liabilities for unpaid claims and estimated claim settlement expenses represent our best estimate of the ultimate obligations for reported and incurred-but-not-reported claims and the related estimated claim settlement expenses. Liabilities for unpaid claims and estimated claim settlement expenses are continually reviewed and adjusted through current operations. Fair Value Measurements For financial assets and liabilities measured at fair value on a recurring basis, fair value is the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date.
Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Preference is given to observable inputs. These two types of inputs create the following fair value hierarchy:
Level 1 – Quoted prices for identical instruments in active markets.
Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
Level 3 – Significant inputs to the valuation model are unobservable.
We maintain policies and procedures to value instruments using the best and most relevant data available. In addition, we have risk management teams that review valuation, including independent price validation for certain instruments. With regards to Level 3 valuations (including instruments valued by third parties), we perform a variety of procedures to assess the reasonableness of the valuations. Such reviews, which may be performed quarterly, monthly or weekly, include an evaluation of instruments whose fair value change exceeds predefined thresholds (and/or does not change) and consider the current interest rate, currency and credit environment, as well as other published data, such as rating agency market reports and current appraisals. These reviews are performed within each business by the asset and risk managers, pricing committees and valuation committees. A detailed review of methodologies and assumptions is performed by individuals independent of the business for individual measurements with a fair value exceeding predefined thresholds. This detailed review may include the use of a third- party valuation firm.
Recurring Fair Value Measurements The following sections describe the valuation methodologies we use to measure different financial instruments at fair value on a recurring basis.
Investments in Debt and Equity Securities. When available, we use quoted market prices to determine the fair value of investment securities, and they are included in Level 1. Level 1 securities primarily include publicly traded equity securities.
For large numbers of investment securities for which market prices are observable for identical or similar investment securities but not readily accessible for each of those investments individually (that is, it is difficult to obtain pricing information for each individual investment security at the measurement date), we obtain pricing information from an independent pricing vendor. The pricing vendor uses various pricing models for each asset class that are consistent with what other market participants would use. The inputs and assumptions to the model of the pricing vendor are derived from market observable sources including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and other market-related data. Since many fixed income securities do not trade on a daily basis, the methodology of the pricing vendor uses available information as applicable such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. The pricing vendor considers available market observable inputs in determining the evaluation for a security. Thus, certain securities may not be priced using quoted prices, but rather determined from market observable information. These investments are included in Level 2 and primarily comprise our portfolio of corporate fixed income, and government, mortgage and asset-backed securities. In infrequent circumstances, our pricing vendors may provide us with valuations that are based on significant unobservable inputs, and in those circumstances we classify the investment securities in Level 3.
Annually, we conduct reviews of our primary pricing vendor to validate that the inputs used in that vendor's pricing process are deemed to be market observable as defined in the standard. While we are not provided access to proprietary models of the vendor, our reviews have included on-site walk-throughs of the pricing process, methodologies and control procedures for each asset class and level for which prices are provided. Our reviews also include an examination of the underlying inputs and assumptions for a sample of individual securities across asset classes, credit rating levels and various durations, a process we perform each reporting period. In addition, the pricing vendor has an established challenge process in place for all security valuations, which facilitates identification and resolution of potentially erroneous prices. We believe that the prices received from our pricing vendor are representative of prices that would be received to sell the assets at the measurement date (exit prices) and are classified appropriately in the hierarchy. We use non-binding broker quotes and other third-party pricing services as our primary basis for valuation when there is limited, or no, relevant market activity for a specific instrument or for other instruments that share similar characteristics. We have not adjusted the prices we have obtained. Investment securities priced using non-binding broker quotes and other third-party pricing services are included in Level 3. As is the case with our primary pricing vendor, third-party brokers and other third-party pricing services do not provide access to their proprietary valuation models, inputs and assumptions. Accordingly, our risk management personnel conduct reviews of vendors, as applicable, similar to the reviews performed of our primary pricing vendor. In addition, we conduct internal reviews of pricing for all such investment securities quarterly to ensure reasonableness of valuations used in our financial statements. These reviews are designed to identify prices that appear stale, those that have changed significantly from prior valuations, and other anomalies that may indicate that a price may not be accurate. Based on the information available, we believe that the fair values provided by the brokers and other third-party pricing services are representative of prices that would be received to sell the assets at the measurement date (exit prices). Derivatives. We use closing prices for derivatives included in Level 1, which are traded either on exchanges or liquid over-the-counter markets.
The majority of our derivatives are valued using internal models. The models maximize the use of market observable inputs including interest rate curves and both forward and spot prices for currencies and commodities. Derivative assets and liabilities included in Level 2 primarily represent interest rate swaps, cross-currency swaps and foreign currency and commodity forward and option contracts.
Derivative assets and liabilities included in Level 3 primarily represent interest rate products that contain embedded optionality or prepayment features. Non-Recurring Fair Value Measurements Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments only in certain circumstances. These assets can include loans and long-lived assets that have been reduced to fair value when they are held for sale, impaired loans that have been reduced based on the fair value of the underlying collateral, cost and equity method investments and long-lived assets that are written down to fair value when they are impaired and the remeasurement of retained investments in formerly consolidated subsidiaries upon a change in control that results in deconsolidation of a subsidiary, if we sell a controlling interest and retain a noncontrolling stake in the entity. Assets that are written down to fair value when impaired and retained investments are not subsequently adjusted to fair value unless further impairment occurs.
The following sections describe the valuation methodologies we use to measure financial and non-financial instruments accounted for at fair value on a non-recurring basis.
Loans. When available, we use observable market data, including pricing on recent closed market transactions, to value loans that are included in Level 2. When this data is unobservable, we use valuation methodologies using current market interest rate data adjusted for inherent credit risk, and such loans are included in Level 3. When appropriate, loans may be valued using collateral values (see Long-Lived Assets below).
Cost and Equity Method Investments. Cost and equity method investments are valued using market observable data such as quoted prices when available. When market observable data is unavailable, investments are valued using a discounted cash flow model, comparative market multiples or a combination of both approaches as appropriate and other third-party pricing sources. These investments are generally included in Level 3.
Investments in private equity, real estate and collective funds are valued using net asset values. The net asset values are determined based on the fair values of the underlying investments in the funds. Investments in private equity and real estate funds are generally included in Level 3 because they are not redeemable at the measurement date. Investments in collective funds are included in Level 2.
Long-lived Assets. Fair values of long-lived assets, including aircraft and real estate, are primarily derived internally and are based on observed sales transactions for similar assets. In other instances, for example, collateral types for which we do not have comparable observed sales transaction data, collateral values are developed internally and corroborated by external appraisal information. Adjustments to third-party valuations may be performed in circumstances where market comparables are not specific to the attributes of the specific collateral or appraisal information may not be reflective of current market conditions due to the passage of time and the occurrence of market events since receipt of the information. For real estate, fair values are based on discounted cash flow estimates which reflect current and projected lease profiles and available industry information about capitalization rates and expected trends in rents and occupancy and are corroborated by external appraisals. These investments are generally included in Level 3.
Retained Investments in Formerly Consolidated Subsidiaries. Upon a change in control that results in deconsolidation of a subsidiary, the fair value measurement of our retained noncontrolling stake in the former subsidiary is valued using an income approach, a market approach, or a combination of both approaches as appropriate. In applying these methodologies, we rely on a number of factors, including actual operating results, future business plans, economic projections, market observable pricing multiples of similar businesses and comparable transactions, and possible control premium. These investments are included in Level 1 or Level 3, as appropriate, determined at the time of the transaction. Accounting Changes On January 1, 2012, we adopted FASB Accounting Standards Update (ASU) 2011-05, an amendment to ASC 220, Comprehensive Income. ASU 2011-05 introduced a new statement, the Consolidated Statement of Comprehensive Income. The amendments affect only the display of those components of equity categorized as other comprehensive income and do not change existing recognition and measurement requirements that determine net earnings.
On January 1, 2012, we adopted FASB ASU 2011-04, an amendment to ASC 820, Fair Value Measurements. ASU 2011-04 clarifies or changes the application of existing fair value measurements, including: that the highest and best use valuation premise in a fair value measurement is relevant only when measuring the fair value of nonfinancial assets; that a reporting entity should measure the fair value of its own equity instrument from the perspective of a market participant that holds that instrument as an asset; to permit an entity to measure the fair value of certain financial instruments on a net basis rather than based on its gross exposure when the reporting entity manages its financial instruments on the basis of such net exposure; that in the absence of a Level 1 input, a reporting entity should apply premiums and discounts when market participants would do so when pricing the asset or liability consistent with the unit of account; and that premiums and discounts related to size as a characteristic of the reporting entity's holding are not permitted in a fair value measurement. Adopting these amendments had no effect on the financial statements.
On July 1, 2011, we adopted FASB ASU 2011-02, an amendment to ASC 310, Receivables. This ASU provides guidance for determining whether the restructuring of a debt constitutes a TDR and requires that such actions be classified as a TDR when there is both a concession and the debtor is experiencing financial difficulties. The amendment also clarifies guidance on a creditor's evaluation of whether it has granted a concession. The amendment applies to restructurings that have occurred subsequent to January 1, 2011. As a result of adopting these amendments on July 1, 2011, we have classified an additional $271 million of financing receivables as TDRs and have recorded an increase of $77 million to our allowance for losses on financing receivables. See Note 16.
On January 1, 2010, we adopted ASU 2009-16 and ASU 2009-17, amendments to ASC 860, Transfers and Servicing, and ASC 810, Consolidation, respectively (ASU 2009-16 & 17). ASU 2009-16 eliminated the Qualified Special Purpose Entity (QSPE) concept, and ASU 2009-17 required that all such entities be evaluated for consolidation as VIEs. Adoption of these amendments resulted in the consolidation of all of our sponsored QSPEs. In addition, we consolidated assets of VIEs related to direct investments in entities that hold loans and fixed income securities and a small number of companies to which we have extended loans in the ordinary course of business and subsequently were subject to a TDR.
We consolidated the assets and liabilities of these entities at amounts at which they would have been reported in our financial statements had we always consolidated them. We also deconsolidated certain entities where we did not meet the definition of the primary beneficiary under the revised guidance; however, the effect was insignificant at January 1, 2010. The incremental effect on total assets and liabilities, net of our investment in these entities, was an increase of $30,572 million and $32,359 million, respectively, at January 1, 2010. The net reduction of total equity (including noncontrolling interests) was $1,787 million at January 1, 2010, principally related to the reversal of previously recognized securitization gains as a cumulative effect adjustment to retained earnings. See Note 17 for additional information.
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Investment Securities (Contractual maturities) (Details) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2012
|
---|---|
Amortized Cost [Member]
|
|
Investment [Line Items] | |
2013 | $ 1,937 |
2014-2017 | 7,167 |
2018-2022 | 4,782 |
2023 and later | 17,901 |
Estimated Fair Value [Member]
|
|
Investment [Line Items] | |
2013 | 1,960 |
2014-2017 | 7,180 |
2018-2022 | 5,283 |
2023 and later | $ 21,998 |