Shareowners' Equity

12 Months Ended

Dec. 31, 2012

Stockholders' Equity Note [Abstract]

Shareowners' Equity

NOTE 11. SHAREOWNERS' EQUITY

(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)		0		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

• 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.
• 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.
• Included the effects of accretion of redeemable securities to their redemption value of $38 million in 2010.

At December 31, 2011, all of our outstanding common stock was owned by our former parent, GECS, however, upon the completion of the merger, (i) all outstanding shares of GECC common stock were cancelled, (ii) all outstanding shares of common stock of GECS and all outstanding shares of preferred stock of GECS held by GE were converted into an aggregate of 1,000 shares of common stock of GECC and (iii) all treasury shares of GECS and all outstanding shares of preferred stock of GECS held by GECC were cancelled. As a result, GECC, which previously has been an indirect wholly-owned subsidiary of GE, became a direct wholly-owned subsidiary of GE. See Note 1. 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.

During 2012, we issued 40,000 shares of non-cumulative perpetual preferred stock with a $0.01 par value for proceeds of $3,960 million. Of these shares, 22,500 bear an initial fixed interest rate of 7.125% through June 12, 2022, bear a floating rate equal to three-month LIBOR plus 5.296% thereafter and are callable on June 15, 2022 and17,500 shares bear an initial fixed interest rate of 6.25% through December 15, 2022, bear a floating rate equal to three-month LIBOR plus 4.704% thereafter and are callable on December 15, 2022. Dividends on the preferred stock are payable semi-annually with the first payment made in December 2012. During 2012, we paid preferred stock dividends of $123 million.

During 2012, we paid dividends of $1,926 million and special dividends of $4,500 million to GE. No dividends were paid during 2011 or 2010.

Activities of our financial services consolidated affiliates include lending, leasing and other traditional financial services transactions and relate to approximately $166.8 billion of our total assets. These consolidated affiliates may be subject to regulation by various national authorities including banking, financial services and insurance regulators, and are restricted from remitting certain funds to us in the form of dividends or loans. However, such funds are available for use by these affiliates, without restriction, to repay borrowings, to fund new loans, or for other normal business purposes. Our regulated bank subsidiaries are also subject to minimum regulatory capital requirements and we have also committed to maintain the total capital level for our run-off insurance operations at 300% of the regulatory minimum required level. In February 2012, we contributed cash of $0.8 billion to these operations. At December 31, 2012, restricted net assets of our financial services consolidated affiliates were approximately $19.9 billion.

At both December 31, 2012 and 2011, the aggregate statutory capital and surplus of the insurance activities totaled $1.6 billion. Accounting practices prescribed by statutory authorities are used in preparing statutory statements.

(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		0		0
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		0		(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		0		(2)		0
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		0		0		0
Balance at December 31	$	(736)	$	(563)	$	(380)
Accumulated other comprehensive income at December 31	$	(940)	$	(2,096)	$	(3,711)

• Includes adjustments of $527 million, $786 million and $1,171 million in 2012, 2011 and 2010, respectively, to deferred acquisition costs, present value of future profits, and investment contracts, insurance liabilities and insurance annuity benefits 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.
• Total other comprehensive income was $1,168 million, $1,601 million and $(2,122) million in 2012, 2011 and 2010, respectively.

Noncontrolling Interests

Noncontrolling interests in equity of consolidated affiliates includes common shares in consolidated affiliates and preferred stock issued by our affiliates. Preferred shares that we are required to redeem at a specified or determinable date are classified as liabilities. The balance is summarized as follows:

December 31 (In millions)	2012		2011
Noncontrolling interests in consolidated affiliates(a)	$	707	$	690

• Consisted of a number of individually insignificant noncontrolling interests in partnerships and consolidated affiliates.

Changes to noncontrolling interests are as follows.

(In millions)	2012		2011		2010
Beginning balance	$	690	$	1,164	$	2,048
Net earnings		63		127		16
Dividends		(19)		(20)		(7)
Dispositions(a)		0		(586)		(979)
AOCI and other		(27)		5		86
Ending balance	$	707	$	690	$	1,164

• Includesnoncontrolling interests related to the sale of GE SeaCoof $311 million and the redemption of Heller Financial preferred stock of $275 million in 2011, as well as the deconsolidation of Regency Energy Partners L.P. (Regency)of $979 million in 2010.