-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SKZACpG8CX6hBkkMih4+sbBrYq+T9yt1Z/LNBPpYVBDDGKTJNDSuexBLCL+vbLpF 0Z8olS/GGo1l53PWyIVXZg== 0000040554-96-000196.txt : 19961113 0000040554-96-000196.hdr.sgml : 19961113 ACCESSION NUMBER: 0000040554-96-000196 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960928 FILED AS OF DATE: 19961112 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENERAL ELECTRIC CAPITAL CORP CENTRAL INDEX KEY: 0000040554 STANDARD INDUSTRIAL CLASSIFICATION: PERSONAL CREDIT INSTITUTIONS [6141] IRS NUMBER: 131500700 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 002-38216 FILM NUMBER: 96659490 BUSINESS ADDRESS: STREET 1: 260 LONG RIDGE RD CITY: STAMFORD STATE: CT ZIP: 06927 BUSINESS PHONE: 2033574000 MAIL ADDRESS: STREET 1: 260 LONG RIDGE ROAD CITY: STAMFORD STATE: CT ZIP: 06927 FORMER COMPANY: FORMER CONFORMED NAME: GENERAL ELECTRIC CREDIT CORP DATE OF NAME CHANGE: 19871216 10-Q 1 GENERAL ELECTRIC CAPITAL CORPORATION UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------ FORM 10-Q ------------------ |X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 28, 1996 OR |_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ ---------------------- Commission file number 1-6461 ---------------------- GENERAL ELECTRIC CAPITAL CORPORATION (Exact name of registrant as specified in its charter) NEW YORK 13-1500700 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 260 LONG RIDGE ROAD, STAMFORD, CONNECTICUT 06927 (Address of principal executive offices) (Zip Code) (203) 357-4000 (Registrant's telephone number, including area code) ---------------------- Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No __ At November 8, 1996, 3,837,825 shares of common stock with a par value of $200 were outstanding. REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM 10-Q WITH THE REDUCED DISCLOSURE FORMAT. TABLE OF CONTENTS PAGE PART I - FINANCIAL INFORMATION. Item 1. Financial Statements ...................................... 1 Item 2. Management's Discussion and Analysis of Results of Operations ............................................ 5 Exhibit 12. Computation of Ratio of Earnings to Fixed Charges and Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends .................................... 7 PART II - OTHER INFORMATION. Item 6. Exhibits and Reports on Form 8-K .......................... 8 Signatures ........................................................ 9 Index to Exhibits ................................................. 10 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS. GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES CONDENSED STATEMENT OF CURRENT AND RETAINED EARNINGS (Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED --------------------- --------------------- (In millions) SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER 28, 1996 30, 1995 28, 1996 30, 1995 -------- -------- -------- -------- EARNED INCOME .................................................. $ 7,008 $ 5,395 $ 18,696 $ 15,354 -------- -------- -------- -------- EXPENSES Interest ....................................................... 1,685 1,662 5,075 4,793 Operating and administrative ................................... 2,583 1,456 6,205 4,400 Insurance losses and policyholder and annuity benefits ......... 821 445 2,213 1,447 Provision for losses on financing receivables .................. 254 352 695 710 Depreciation and amortization of buildings and equipment and equipment on operating leases ................................. 556 487 1,569 1,426 Minority interest in net earnings of consolidated affiliates ... 17 15 59 48 -------- -------- -------- -------- 5,916 4,417 15,816 12,824 -------- -------- -------- -------- EARNINGS Earnings before income taxes ................................... 1,092 978 2,880 2,530 Provision for income taxes ..................................... (344) (330) (900) (837) -------- -------- -------- -------- NET EARNINGS ................................................... 748 648 1,980 1,693 Dividends ...................................................... (272) (260) (746) (521) Retained earnings at beginning of period ....................... 9,695 9,105 8,937 8,321 -------- -------- -------- -------- RETAINED EARNINGS AT END OF PERIOD ......................................................... $ 10,171 $ 9,493 $ 10,171 $ 9,493 ======== ======== ======== ========
See Notes to Condensed, Consolidated Financial Statements. 1 ITEM 1. FINANCIAL STATEMENTS (Continued). GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES CONDENSED STATEMENT OF FINANCIAL POSITION
(In millions) SEPTEMBER 28, DECEMBER 31, 1996 1995 ------------- ------------ (UNAUDITED) ASSETS Cash and equivalents ................................... $ 2,777 $ 1,316 Investment securities .................................. 33,623 26,991 Financing receivables: Time sales and loans, net of deferred income ....... 59,902 59,591 Investment in financing leases, net of deferred income ................................... 37,269 36,200 -------- -------- 97,171 95,791 Allowance for losses on financing receivables ...... (2,556) (2,519) -------- -------- Financing receivables - net .................... 94,615 93,272 Other receivables - net ................................ 6,988 6,408 Equipment on operating leases (at cost), less accumulated amortization of $5,336 and $4,670 ......... 15,813 13,793 Other assets ........................................... 25,361 19,045 -------- -------- TOTAL ASSETS ........................................... $179,177 $160,825 ======== ======== LIABILITIES AND EQUITY Short-term borrowings .................................. $ 68,371 $ 59,264 Long-term borrowings: Senior ............................................. 45,636 47,794 Subordinated ....................................... 697 697 Insurance liabilities, reserves and annuity benefits ... 31,637 22,401 Other liabilities ...................................... 9,926 9,202 Deferred income taxes .................................. 7,121 6,562 -------- -------- Total liabilities .................................. 163,388 145,920 -------- -------- Minority interest in equity of consolidated affiliates . 769 703 -------- -------- Capital stock .......................................... 770 770 Additional paid-in capital ............................. 4,024 4,022 Retained earnings ...................................... 10,171 8,937 Unrealized gains on investment securities .............. 141 543 Foreign currency translation adjustments ............... (86) (70) -------- -------- Total equity ....................................... 15,020 14,202 -------- -------- TOTAL LIABILITIES AND EQUITY ........................... $179,177 $160,825 ======== ========
See Notes to Condensed, Consolidated Financial Statements. 2 ITEM 1. FINANCIAL STATEMENTS (Continued). GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES CONDENSED STATEMENT OF CASH FLOWS (Unaudited)
NINE MONTHS ENDED ---------------------- (In millions) SEPTEMBER SEPTEMBER 28, 1996 30, 1995 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES Net earnings ........................................... $ 1,980 $ 1,693 Adjustments to reconcile net earnings to cash provided from operating activities: Provision for losses on financing receivables ...... 695 710 Depreciation and amortization of buildings and equipment and equipment on operating leases ....... 1,569 1,426 Other - net ........................................ 1,758 1,686 -------- -------- Cash provided from operating activities .......... 6,002 5,515 -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES Increase in loans to customers ......................... (38,262) (33,141) Principal collections from customers ................... 39,080 31,415 Investment in assets on financing leases ............... (9,249) (10,703) Principal collections on financing leases .............. 8,345 5,968 Net increase in credit card receivables ................ (950) (1,067) Buildings and equipment and equipment on operating leases: - additions ......................................... (4,058) (4,208) - dispositions ...................................... 677 2,074 Payments for principal businesses purchased, net of cash acquired ......................................... (2,320) (2,433) Proceeds from principal business dispositions .......... -- 575 Purchases of investment securities by insurance affiliates and annuity businesses ..................... (5,396) (4,970) Dispositions and maturities of investment securities by insurance affiliates and annuity businesses ........ 5,203 4,717 Other - net ............................................ (3,702) (1,680) -------- -------- Cash used for investing activities ............... (10,632) (13,453) -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES Net change in borrowings (maturities 90 days or less) .. 7,312 (7,538) Newly issued debt - short-term (maturities 91-365 days) ............... 3,693 1,862 - long-term senior .................................. 12,998 26,506 Proceeds - non-recourse, leveraged lease debt .......... 505 257 Repayments and other reductions - short-term (maturities 91-365 days) ............... (17,082) (11,336) - long-term senior .................................. (780) (597) Principal payments - non-recourse, leveraged lease debt. (227) (235) Proceeds from sales of investment and annuity contracts. 1,982 976 Redemption of investment and annuity contracts ......... (1,689) (1,593) Dividends paid ......................................... (746) (521) Issuance of preferred stock in excess of par value ..... -- 525 Issuance of variable cumulative preferred stock by consolidated affiliate ................................ 125 120 -------- -------- Cash provided from financing activities .......... 6,091 8,426 -------- -------- INCREASE IN CASH AND EQUIVALENTS ....................... 1,461 488 CASH AND EQUIVALENTS AT BEGINNING OF PERIOD ............ 1,316 712 -------- -------- CASH AND EQUIVALENTS AT END OF PERIOD .................. $ 2,777 $ 1,200 ======== ========
See Notes to Condensed, Consolidated Financial Statements. 3 ITEM 1. FINANCIAL STATEMENTS (Continued). GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES NOTES TO CONDENSED, CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. The accompanying condensed quarterly financial statements represent the adding together of General Electric Capital Corporation and all majority-owned and controlled affiliates (collectively called "the Corporation" or "GECC"). All significant transactions among the parent and consolidated affiliates have been eliminated. Certain prior period data have been reclassified to conform to the current period presentation. 2. The condensed, consolidated quarterly financial statements are unaudited. These statements include all adjustments (consisting of normal recurring accruals) considered necessary by management to present a fair statement of the results of operations, financial position and cash flows. The results reported in these condensed, consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. 3. Two newly issued accounting standards were adopted in the first quarter of 1996 and did not have a material effect on the financial position or results of operations of the Corporation. Statement of Financial Accounting Standards (SFAS) No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of, requires that certain long-lived assets be reviewed for impairment when events or circumstances indicate that the carrying amounts of the assets may not be recoverable. If such review indicates that the carrying amount of an asset exceeds the sum of its expected future cash flows, the asset's carrying value is written down to fair value. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. SFAS No. 122, Accounting for Mortgage Servicing Rights, requires that capitalized rights to service mortgage loans be assessed for impairment by individual risk stratum by comparing each stratum's carrying amount with its fair value. Strata are based on the predominant risk characteristics of the underlying loans, which include loan type and note rate. Fair values are estimated based on discounted anticipated future net cash flows considering market consensus for loan prepayment predictions and other economic factors. To the extent that the carrying value of mortgage servicing rights exceeds fair value by individual stratum, the resulting impairment is recognized in earnings through a valuation allowance. 4 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS. OVERVIEW Net earnings for the first nine months of 1996 were $1,980 million, a $287 million (17%) increase over the first nine months of 1995. The Corporation's contribution to the earnings of its parent, General Electric Capital Services, Inc. after payment of dividends on its variable cumulative preferred stock, was $1,924 million, a $264 million (16%) increase over the comparable 1995 period. Earnings of the lending, leasing and equipment management businesses are significantly influenced by the level of invested assets, the related financing spreads (the excess of rates earned - yields - over rates on borrowings) and the quality of those assets. The Corporation's increase in net earnings principally resulted from a higher average level of invested assets, partially offset by a decrease in financing spreads as the decrease in borrowing rates was outpaced by a decrease in yields. The specialty insurance businesses also contributed to the increase in net earnings primarily resulting from increased premium and investment income. OPERATING RESULTS EARNED INCOME from all sources increased $3,342 million (22%) to $18,696 million for the first nine months of 1996 over the first nine months of 1995. Earned income from the specialized financing, mid-market financing, consumer services and equipment management businesses increased $2,786 million (20%) over the comparable prior-year period. These increases principally reflect a higher average level of invested assets, resulting from both origination volume and acquisitions of portfolios and businesses, higher consumer insurance premiums arising from acquisitions in 1995 and 1996 and increased personal computer equipment sales associated with the acquisitions of Ameridata Technologies, Inc. ("Ameridata") and CompuNet Computer AG ("CompuNet") during the third quarter of 1996. Earned income from the specialty insurance businesses increased $556 million (36%) to $2,116 million for the first nine months of 1996 compared with the first nine months of 1995 due to growth in premium and investment income resulting from both origination volume and acquisitions. INTEREST EXPENSE on borrowings for the first nine months of 1996 was $5,075 million, 6% higher than for the first nine months of 1995. The increase reflected the effects of higher average borrowings used to finance asset growth, partially offset by the effects of lower interest rates. The composite interest rate on the borrowings for the first nine months of 1996 was 6.26% compared with 6.77% in the first nine months of 1995. OPERATING AND ADMINISTRATIVE EXPENSES were $6,205 million for the first nine months of 1996, a 41% increase over the first nine months of 1995. The increase primarily reflected costs associated with businesses and portfolios acquired over the past year and higher investment levels. Included in the increase are costs of personal computer equipment sold associated with the acquisitions of Ameridata and CompuNet during the third quarter of 1996. INSURANCE LOSSES AND POLICYHOLDER AND ANNUITY BENEFITS increased 53% to $2,213 million for the first nine months of 1996, compared with $1,447 million for the first nine months of 1995. The increase primarily resulted from the acquisition of insurance businesses in 1995 and 1996. PROVISION FOR LOSSES ON FINANCING RECEIVABLES decreased to $695 million for the first nine months of 1996 from $710 million for the first nine months of 1995. These provisions principally related to private-label and bank credit cards which are discussed below under Portfolio Quality. The decrease reflected the effects of sales of receivables and loan repayments, partially offset by increases for private-label and bank credit cards. 5 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS (Continued). DEPRECIATION AND AMORTIZATION OF BUILDINGS AND EQUIPMENT AND EQUIPMENT ON OPERATING LEASES increased $143 million (10%) to $1,569 million for the first nine months of 1996 compared with $1,426 million for the first nine months of 1995. The increase principally reflected higher levels of equipment on operating leases as a result of portfolio growth and acquisitions. PROVISION FOR INCOME TAXES was $900 million for the first nine months of 1996 (an effective tax rate of 31%), compared with $837 million for the first nine months of 1995 (an effective tax rate of 33%). The higher provision for income taxes reflected increased pre-tax earnings. The decrease in the 1996 effective tax rate resulted primarily from increased tax credits and a decrease in foreign taxes. PORTFOLIO QUALITY THE PORTFOLIO OF FINANCING RECEIVABLES, before allowance for losses, increased to $97.2 billion at September 28, 1996 from $95.8 billion at the end of 1995. Financing receivables are the Corporation's largest asset and the primary source of revenues. Related allowances for losses at September 28, 1996, aggregated $2.6 billion (2.63% of receivables - the same level as at the end of 1995) and are, in management's judgment, appropriate given the risk profile of the portfolio. A discussion about the quality of certain elements of the portfolio of financing receivables follows. "Nonearning receivables" are those that are 90 days or more delinquent; "reduced earning receivables" are receivables whose terms have been restructured to a below-market yield. CONSUMER RECEIVABLES, primarily credit card and personal loans and auto loans and leases, were $43.6 billion at September 28, 1996, an increase of $1.6 billion from the end of 1995. Nonearning and reduced earning receivables increased to $812 million at September 28, 1996, from $671 million at December 31, 1995. Write-offs of consumer receivables increased to $622 million for the first nine months of 1996, compared with $469 million for the first nine months of 1995. This increase was primarily attributable to higher average receivable balances resulting from a combination of origination volume and acquisitions of businesses and portfolios and higher delinquencies consistent with overall industry experience. COMMERCIAL REAL ESTATE LOANS classified as financing receivables were $13.0 billion at September 28, 1996, a decrease of $0.4 billion from year-end 1995. Nonearning and reduced earning receivables increased to $185 million at September 28, 1996, from $179 million at December 31, 1995. Write-offs of commercial real estate loans were $33 million for the first nine months of 1996, compared with $102 million for the first nine months of 1995. At September 28, 1996, the commercial real estate portfolio also included, in other assets, $2.3 billion of assets acquired for resale from various financial institutions (the same as at year-end 1995) and $2.0 billion of investments in real estate ventures ($1.7 billion at year-end 1995). OTHER FINANCING RECEIVABLES, totaling $40.6 billion at September 28, 1996 ($40.4 billion at December 31, 1995), consisted of a diverse commercial, industrial and equipment loan and lease portfolio. Nonearning and reduced-earning receivables were $286 million at September 28, 1996, compared with $285 million at year-end 1995. Loans and leases to commercial airlines amounted to $8.5 billion at September 28, 1996, up from $8.3 billion at the end of 1995. OTHER MATTERS As 1996 progresses, management continues to believe that vigilant attention to risk management and controllership and a strong focus on complete satisfaction of customer needs position it to deal effectively with the increasing competition in an ever-changing global economy. 6 EXHIBIT 12 GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS NINE MONTHS ENDED SEPTEMBER 28, 1996 (Unaudited)
RATIO OF EARNINGS TO COMBINED FIXED RATIO OF CHARGES AND EARNINGS PREFERRED TO FIXED STOCK (Dollar amounts in millions) CHARGES DIVIDENDS --------- ----------- Net earnings ........................................... $ 1,980 $ 1,980 Provision for income taxes ............................. 900 900 Minority interest in net earnings of consolidated affiliates............................................. 59 59 -------- -------- Earnings before provision for income taxes and minority interest............................................... 2,939 2,939 -------- -------- Fixed charges: Interest ........................................... 5,121 5,121 One-third of rentals ............................... 126 126 -------- -------- Total fixed charges .................................... 5,247 5,247 -------- -------- Less capitalized interest, net of amortization ......... 26 26 -------- -------- Earnings before provision for income taxes and minority interest plus fixed charges ........................... $ 8,160 $ 8,160 ======== ======== Ratio of earnings to fixed charges ..................... 1.56 ======== Preferred stock dividend requirements .................. $ 56 Ratio of earnings before provision for income taxes to net earnings........................................... 1.45 Preferred stock dividend on pre-tax basis .............. 81 Fixed charges .......................................... 5,247 -------- Total fixed charges and preferred stock dividend requirements........................................... $ 5,328 ======== Ratio of earnings to combined fixed charges and preferred stock dividends.............................. 1.53 ========
For purposes of computing the ratios, fixed charges consist of interest on all indebtedness and one-third of rentals, which management believes is a reasonable approximation of the interest factor of such rentals. 7 PART II--OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K a. EXHIBITS. Exhibit 3(i). A complete copy of the Organization Certificate of the Corporation as last amended on November 1, 1995 and currently in effect, consisting of the following: (a) the Organization Certificate of the Corporation as in effect immediately prior to the filing of the Certificate of Amendment as of April 21, 1995 (Incorporated by reference to Exhibit 3(i) to the Corporation's Form 10-K Report for the year ended December 31, 1993); (b) a Certificate of Amendment filed in the Office of the Superintendent of Banks of the State of New York (the "Office of the Superintendent") as of April 21, 1995 (Incorporated by reference to Exhibit 4(b) to the Corporation's Registration Statement on Form S-3, File No. 33-58771); (c) a Certificate of Amendment filed in the Office of the Superintendent as of May 11, 1995 (Incorporated by reference to Exhibit 4(c) to the Corporation's Registration Statement on form S-3, File No. 33-61257); (d) a Certificate of Amendment filed in the Office of the Superintendent as of June 28, 1995 (Incorporated by reference to Exhibit 4(d) to the Corporation's Registration Statement on Form S-3, File No. 33-61257); (e) a certificate of Amendment filed in the Office of the Superintendent as of July 17, 1995 (Incorporated by reference to Exhibit 4(e) to the Corporation's Registration Statement on Form S-3, File No. 33-61257); (f) a Certificate of Amendment filed in the Office of the Superintendent as of November 1, 1995 (Incorporated by reference to Exhibit 3(i) to the Corporation's Form 10-K Report for the year ended December 31, 1995); and (g) a Certificate of Amendment filed in the Office of the Superintendent as of September 26, 1996 (Incorporated by reference to Exhibit 4(g) to the Corporation's Registration Statement on Form S-3, File No. 33-13195). Exhibit 12. Computation of ratio of earnings to fixed charges and computation of ratio of earnings to combined fixed charges and preferred stock dividends. Exhibit 27. Financial Data Schedule (filed electronically only). b. REPORTS ON FORM 8-K. None 8 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. GENERAL ELECTRIC CAPITAL CORPORATION (Registrant) Date: November 11, 1996 By: /s/ J.A. Parke ----------------------------------------- J.A. Parke, Senior Vice President, Finance (Principal Financial Officer) Date: November 11, 1996 By: /s/ J.C. Amble ----------------------------------------- J.C. Amble, Vice President and Controller (Principal Accounting Officer) 9 GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES INDEX TO EXHIBITS EXHIBIT NO. PAGE - ----------- ---- 3(i) A complete copy of the Organization Certificate of the Corporation as last amended on November 1, 1995 and currently in effect, consisting of the following: (a) the Organization Certificate of the Corporation as in effect immediately prior to the filing of the Certificate of Amendment as of April 21, 1995 (Incorporated by reference to Exhibit 3(i) to the Corporation's Form 10-K Report for the year ended December 31, 1993); (b) a Certificate of Amendment filed in the Office of the Superintendent of Banks of the State of New York (the "Office of the Superintendent") as of April 21, 1995 (Incorporated by reference to Exhibit 4(b) to the Corporation's Registration Statement on Form S-3, File No. 33-58771); (c) a Certificate of Amendment filed in the Office of the Superintendent as of May 11, 1995 (Incorporated by reference to Exhibit 4(c) to the Corporation's Registration Statement on form S-3, File No. 33-61257); (d) a Certificate of Amendment filed in the Office of the Superintendent as of June 28, 1995 (Incorporated by reference to Exhibit 4(d) to the Corporation's Registration Statement on Form S-3, File No. 33-61257); (e) a certificate of Amendment filed in the Office of the Superintendent as of July 17, 1995 (Incorporated by reference to Exhibit 4(e) to the Corporation's Registration Statement on Form S-3, File No. 33-61257); (f) a Certificate of Amendment filed in the Office of the Superintendent as of November 1, 1995 (Incorporated by reference to Exhibit 3(i) to the Corporation's Form 10-K Report for the year ended December 31, 1995); and (g) a Certificate of Amendment filed in the Office of the Superintendent as of September 26, 1996 (Incorporated by reference to Exhibit 4(g) to the Corporation's Registration Statement on Form S-3, File No. 33-13195). 12 Computation of ratio of earnings to fixed charges and computation of ratio of earnings to combined fixed charges and preferred stock dividends ........ 7 27 Financial Data Schedule (filed electronically only) 10 EX-12 2 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12 GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS NINE MONTHS ENDED SEPTEMBER 28, 1996 (Unaudited)
RATIO OF EARNINGS TO COMBINED FIXED RATIO OF CHARGES AND EARNINGS PREFERRED TO FIXED STOCK (Dollar amounts in millions) CHARGES DIVIDENDS --------- ----------- Net earnings ........................................... $ 1,980 $ 1,980 Provision for income taxes ............................. 900 900 Minority interest in net earnings of consolidated affiliates............................................. 59 59 -------- -------- Earnings before provision for income taxes and minority interest............................................... 2,939 2,939 -------- -------- Fixed charges: Interest ........................................... 5,121 5,121 One-third of rentals ............................... 126 126 -------- -------- Total fixed charges .................................... 5,247 5,247 -------- -------- Less capitalized interest, net of amortization ......... 26 26 -------- -------- Earnings before provision for income taxes and minority interest plus fixed charges ........................... $ 8,160 $ 8,160 ======== ======== Ratio of earnings to fixed charges ..................... 1.56 ======== Preferred stock dividend requirements .................. $ 56 Ratio of earnings before provision for income taxes to net earnings........................................... 1.45 Preferred stock dividend on pre-tax basis .............. 81 Fixed charges .......................................... 5,247 -------- Total fixed charges and preferred stock dividend requirements........................................... $ 5,328 ======== Ratio of earnings to combined fixed charges and preferred stock dividends.............................. 1.53 ========
For purposes of computing the ratios, fixed charges consist of interest on all indebtedness and one-third of rentals, which management believes is a reasonable approximation of the interest factor of such rentals. EX-27 3 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 28, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 0000040554 GENERAL ELECTRIC CAPITAL CORPORATION 1,000,000 9-MOS DEC-31-1996 SEP-28-1996 2,777 33,623 97,171 2,556 0 0 24,090 6,457 179,177 0 46,333 0 2 768 14,250 179,177 0 18,696 0 0 6,205 695 5,075 2,880 900 1,980 0 0 0 1,980 0.00 0.00
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