-----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, TfTAIaRy6mY5AT+8yxzm0N5Ki/ggXipzR8sBi4acf+Ji0b+VDEkeiNxvCLnmQHDd mqRdI6L0XnGutt6uXfvS6w== 0000040554-99-000056.txt : 19990512 0000040554-99-000056.hdr.sgml : 19990512 ACCESSION NUMBER: 0000040554-99-000056 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19990327 FILED AS OF DATE: 19990511 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: SEC FILE NUMBER: 333-22265 FILM NUMBER: 99617181 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 FORM 10-Q 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 March 27, 1999 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 May 10, 1999, 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 ........................... 6 Exhibit 12. Computation of Ratio of Earnings to Fixed Charges and Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends ....................................... 10 PART II - OTHER INFORMATION. Item 6. Exhibits and Reports on Form 8-K ................ 11 Signatures .................................................... 12 Index to Exhibits ............................................. 13 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 -------------------- MARCH 27, MARCH 28, (In millions) 1999 1998 -------- -------- REVENUES Revenues from services ................................. $ 8,550 $ 7,875 Sales of goods ......................................... 1,640 1,626 -------- -------- 10,190 9,501 -------- -------- EXPENSES Interest ............................................... 2,020 1,948 Operating and administrative ........................... 2,965 2,631 Cost of goods sold ..................................... 1,511 1,482 Insurance losses and policyholder and annuity benefits . 1,413 1,342 Provision for losses on financing receivables .......... 378 332 Depreciation and amortization of buildings and equipment and equipment on operating leases ........... 678 652 Minority interest in net earnings of consolidated affiliates ............................................ 15 11 -------- -------- 8,980 8,398 -------- -------- EARNINGS Earnings before income taxes ........................... 1,210 1,103 Provision for income taxes ............................. (305) (323) -------- -------- NET EARNINGS ........................................... 905 780 Dividends .............................................. (411) (373) Retained earnings at beginning of period ............... 14,340 11,861 -------- -------- RETAINED EARNINGS AT END OF PERIOD ..................... $ 14,834 $ 12,268 ======== ========
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 MARCH DECEMBER 27, 31, (In millions) 1999 1998 -------- -------- (Unaudited) ASSETS Cash and equivalents ................................... $ 3,149 $ 3,080 Investment securities .................................. 56,210 57,275 Financing receivables: Time sales and loans, net of deferred income ......... 75,869 76,794 Investment in financing leases, net of deferred income 46,798 47,536 -------- -------- 122,667 124,330 Allowance for losses on financing receivables ........ (3,226) (3,272) -------- -------- Financing receivables - net ........................ 119,441 121,058 Other receivables - net ................................ 20,253 17,837 Inventories ............................................ 613 744 Equipment on operating leases (at cost), less accumulated amortization of $7,282 and $7,021 ......... 21,192 20,941 Intangible assets ...................................... 11,775 12,033 Other assets ........................................... 37,920 36,082 -------- -------- TOTAL ASSETS ..................................... $270,553 $269,050 ======== ======== LIABILITIES AND SHARE OWNERS' EQUITY Short-term borrowings .................................. $108,743 $107,419 Long-term borrowings: Senior ............................................... 57,927 57,486 Subordinated ......................................... 697 697 Insurance liabilities, reserves and annuity benefits ... 55,479 54,435 Other liabilities ...................................... 16,266 17,908 Deferred income taxes .................................. 8,748 8,899 -------- -------- Total liabilities ................................ 247,860 246,844 -------- -------- Minority interest in equity of consolidated affiliates . 1,238 1,137 -------- -------- Accumulated unrealized gains on investment securities - net ...................................... 807 1,167 Accumulated foreign currency translation adjustments ... (190) (141) -------- -------- Accumulated non-owner changes in share owners' equity .. 617 1,026 Capital stock .......................................... 771 770 Additional paid-in capital ............................. 5,233 4,933 Retained earnings ...................................... 14,834 14,340 -------- -------- Total share owners' equity ....................... 21,455 21,069 -------- -------- TOTAL LIABILITIES AND SHARE OWNERS' EQUITY ....... $270,553 $269,050 ======== ========
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) THREE MONTHS ENDED -------------------- MARCH 27, MARCH 28, (In millions) 1999 1998 -------- -------- CASH FLOWS FROM OPERATING ACTIVITIES Net earnings ........................................... $ 905 $ 780 Adjustments to reconcile net earnings to cash provided from operating activities: Provision for losses on financing receivables ........ 378 332 Depreciation and amortization of buildings and equipment and equipment on operating leases ......... 678 652 Other - net .......................................... 465 854 -------- -------- Cash from operating activities ................... 2,426 2,618 -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES Increase in loans to customers ......................... (18,624) (18,844) Principal collections from customers - loans ........... 17,868 19,249 Investment in equipment for financing leases ........... (3,509) (3,596) Principal collections from customers - financing leases 3,247 2,856 Net change in credit card receivables .................. 763 89 Buildings and equipment and equipment on operating leases: - additions ........................................ (1,365) (1,537) - dispositions ..................................... 868 1,420 Payments for principal businesses purchased, net of cash acquired ......................................... (3,880) (660) Purchases of securities by insurance and annuity businesses .................................... (3,271) (4,074) Dispositions and maturities of securities by insurance and annuity businesses ...................... 2,835 3,022 Other - net ............................................ (489) (990) -------- -------- Cash used for investing activities ............... (5,557) (3,065) -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES Net change in borrowings (maturities 90 days or less) .. 3,487 6,198 Newly issued debt - short-term (maturities 91-365 days) 1,354 1,556 - long-term (longer than one year) .. 5,807 3,853 Proceeds - non-recourse, leveraged lease debt .......... 165 156 Repayments and other reductions: - short-term (maturities 91-365 days) (6,512) (8,221) - long-term (longer than one year) .. (774) (2,630) Principal payments - non-recourse, leveraged lease debt (206) (184) Proceeds from sales of investment contracts ............ 1,543 1,027 Redemption of investment contracts ..................... (1,553) (1,262) Dividends paid ......................................... (411) (336) Issuance of preferred stock in excess of par value ..... 300 -- -------- -------- Cash from financing activities ................... 3,200 157 -------- -------- INCREASE (DECREASE) IN CASH AND EQUIVALENTS ............ 69 (290) CASH AND EQUIVALENTS AT BEGINNING OF PERIOD ............ 3,080 4,648 -------- -------- CASH AND EQUIVALENTS AT END OF PERIOD .................. $ 3,149 $ 4,358 ======== ========
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. In June 1998, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities (the "Statement"). The Statement requires that, upon adoption, all derivative instruments (including certain derivative instruments embedded in other contracts) be recognized in the balance sheet at fair value, and that changes in such fair values be recognized in earnings unless specific hedging criteria are met. Changes in the values of derivatives that meet these hedging criteria will ultimately offset related earnings effects of the hedged items; effects of certain changes in fair value are recorded in equity pending recognition in earnings. The Corporation expects to adopt the Statement on January 1, 2000. The impact of adoption will be determined by several factors, including the specific hedging instruments in place and their relationships to hedged items, as well as market conditions. Management has not estimated the effects of adoption as it believes that such determination will not be meaningful until closer to the adoption date. 4. A summary of changes in share owner's equity that do not result directly from transactions with share owners is provided below.
THREE MONTHS ENDED -------------------- MARCH 27, MARCH 28, (In millions) 1999 1998 -------- -------- Net earnings ...................................... $ 905 $ 780 Unrealized gains (losses) on investment securities - net ................................. (360) 3 Foreign currency translation adjustments .......... (49) (8) -------- -------- Total ............................................. $ 496 $ 775 ======== ========
4 ITEM 1. FINANCIAL STATEMENTS (Continued). 5. Revenues and net earnings of the Corporation, by operating segment, for the first three months of 1999 and 1998 were as follows:
THREE MONTHS ENDED -------------------- MARCH 27, MARCH 28, (In millions) 1999 1998 -------- -------- REVENUES Consumer Services ................................ $ 4,011 $ 3,720 Equipment Management ............................. 3,529 3,292 Mid-Market Financing ............................. 1,014 808 Specialized Financing ............................ 777 744 Specialty Insurance .............................. 817 852 All other ........................................ 42 85 -------- -------- Total revenues ................................... $ 10,190 $ 9,501 ======== ======== NET EARNINGS Consumer Services ................................ $ 211 $ 154 Equipment Management ............................. 210 170 Mid-Market Financing ............................. 116 103 Specialized Financing ............................ 194 176 Specialty Insurance .............................. 134 126 All other ........................................ 40 51 -------- -------- Total net earnings ............................... $ 905 $ 780 ======== ========
5 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS. OVERVIEW Net earnings for the first three months of 1999 were $905 million, a $125 million (16%) increase over the first three months of 1998. The results reflected the globalization and diversity of the Corporation's businesses and were led by double-digit increases in Consumer Services, Equipment Management, Specialized Financing and Mid-Market Financing activities. The improvement in earnings was largely attributable to the effects of continued asset growth, principally from acquisitions of businesses and portfolios and higher origination volume. The Corporation's contribution to its parent, General Electric Capital Services, Inc. ("GECS"), after payment of dividends on its variable cumulative preferred stock, was $880 million, a $122 million (16%) increase over the comparable 1998 period. OPERATING RESULTS TOTAL REVENUES from all sources increased $689 million (7%) to $10,190 million for the first three months of 1999, compared with $9,501 million for the first three months of 1998. This increase was led by acquisition-related growth in the Consumer Services and Mid-Market Financing segments and a combination of core and acquisition growth in the Equipment Management segment. INTEREST EXPENSE for the first three months of 1999 was $2,020 million, 4% higher than for the first three months of 1998. The increase reflected the effects of higher average borrowings used to finance asset growth, partially offset by the effects of lower average interest rates. The composite interest rate on the Corporation's borrowings for the first three months of 1999 was 5.32% compared with 6.08% in the first three months of 1998. OPERATING AND ADMINISTRATIVE EXPENSES were $2,965 million for the first three months of 1999, a 13% increase over the first three months of 1998. The increase primarily reflected costs associated with businesses and portfolios acquired over the past year, higher investment levels and increases in other costs that vary directly with increased revenues. INSURANCE LOSSES AND POLICYHOLDER AND ANNUITY BENEFITS increased $71 million to $1,413 million for the first three months of 1999, compared with the first three months of 1998. The increase primarily reflected the effects of business acquisitions and growth in premium volume throughout the period, partially offset by improved conditions in the mortgage insurance business. PROVISION FOR LOSSES ON FINANCING RECEIVABLES increased to $378 million for the first three months of 1999 from $332 million for the first three months of 1998. These provisions principally related to credit cards, personal loans and auto loans and auto leases in the Consumer Services segment, which are discussed below under Portfolio Quality. DEPRECIATION AND AMORTIZATION OF BUILDINGS AND EQUIPMENT AND EQUIPMENT ON OPERATING LEASES increased $26 million to $678 million for the first three months of 1999 compared with $652 million for the first three months of 1998. The increase was principally the result of higher levels of equipment on operating leases, primarily reflecting acquisition growth. PROVISION FOR INCOME TAXES was $305 million for the first three months of 1999 (an effective tax rate of 25.2%), compared with $323 million for the first three months of 1998 (an effective tax rate of 29.3%). The lower provision for income taxes and effective tax rate primarily reflected decreased taxes on non-U.S. earnings. 6 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS (Continued). OPERATING SEGMENTS Revenues and net earnings of the Corporation, by operating segment, for the first three months of 1999 and 1998 are summarized and discussed below.
THREE MONTHS ENDED -------------------- MARCH 27, MARCH 28, (In millions) 1999 1998 -------- -------- REVENUES Consumer Services ................................ $ 4,011 $ 3,720 Equipment Management ............................. 3,529 3,292 Mid-Market Financing ............................. 1,014 808 Specialized Financing ............................ 777 744 Specialty Insurance .............................. 817 852 All other ........................................ 42 85 -------- -------- Total revenues ................................... $ 10,190 $ 9,501 ======== ======== NET EARNINGS Consumer Services ................................ $ 211 $ 154 Equipment Management ............................. 210 170 Mid-Market Financing ............................. 116 103 Specialized Financing ............................ 194 176 Specialty Insurance .............................. 134 126 All other ........................................ 40 51 -------- -------- Total net earnings ............................... $ 905 $ 780 ======== ========
Consumer Services revenues increased 8% and net earnings increased 37% for the first three months of 1999, compared to the first three months of 1998. The increase in revenues was led by acquisition-related growth at Global Consumer Finance and GE Financial Assurance, the Corporation's consumer savings and insurance business, partially offset by the effects of planned asset reductions in U.S. consumer credit card and automobile financing activities. The increase in net earnings was led by a combination of core and acquisition growth at Global Consumer Finance. Equipment Management revenues grew 7% and net earnings grew 24% for the first three months of 1999, compared to the corresponding period in 1998, reflecting asset growth and gains recognized on sales of assets. Increased volume at Information Technology Solutions also contributed to the revenue increase and improved asset quality contributed to the increase in net earnings. Mid-Market Financing revenues grew 25% and net earnings increased 13% for the first three months of 1999, compared to the corresponding period in 1998, primarily as a result of acquisition growth. Specialized Financing revenues rose 4% and net earnings increased 10% in the first three months of 1999, compared to the first three months of 1998. The increases in revenues and net earnings principally reflected asset growth as well as the effects of asset gains, including securitizations. Specialty Insurance revenues decreased 4% in the first three months of 1999, compared to the corresponding period in 1998, principally resulting from decreased premium volume in the U.K. credit insurance business. Net earnings increased 6% in the same period, primarily reflecting improved conditions in the Mortgage Insurance business, the result of improvements in loss experience, partially offset by lower earnings at the U.K. credit insurance business associated with the decrease in revenues. 7 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS (Continued). PORTFOLIO QUALITY FINANCING RECEIVABLES are the financing segment's largest asset and its primary source of revenues. The portfolio of financing receivables, before allowance for losses, decreased to $122.7 billion at March 27, 1999, from $124.3 billion at the end of 1998, primarily reflecting the effects of foreign currency translation on European financing receivables, partially offset by higher origination volume and acquisition growth. The related allowances for losses at March 27, 1999 amounted to $3.2 billion ($3.3 billion at the end of 1998) and, in management's judgment, are 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 (or for which collection has otherwise become doubtful) and "reduced-earning" receivables are commercial receivables whose terms have been restructured to a below-market yield. The following discussion of the nonearning and reduced-earning receivable balances and write-off amounts excludes amounts related to Montgomery Ward Holding Corp. and affiliates, which are separately discussed below. CONSUMER FINANCING RECEIVABLES, primarily credit card and personal loans and auto loans and leases, were $51.1 billion at March 27, 1999, a decrease of $0.5 billion from the end of 1998. Nonearning receivables were $1.2 billion at March 27, 1999, 2.3% of total consumer financing receivables, compared with $1.3 billion, 2.4% of total consumer receivables, at December 31, 1998. Write-offs of consumer receivables decreased to $286 million for the first three months of 1999, compared with $356 million for the first three months of 1998. This decrease was primarily attributable to lower average receivable balances resulting from securitization and other sales of portfolios as well as the effects of lower delinquencies during the first three months of 1999. OTHER FINANCING RECEIVABLES, totaling $71.6 billion at March 27, 1999 ($72.7 billion at December 31, 1998), consisted of a diverse commercial, industrial and equipment loan and lease portfolio. Related nonearning and reduced-earning receivables were less than 1% of total other financing receivables at March 27, 1999 and December 31, 1998. As discussed in the Corporation's Annual Report on Form 10-K for the year ended December 31, 1998, Montgomery Ward Holding Corp. ("MWHC") filed a bankruptcy petition for reorganization in 1997. The Corporation's recorded investment in MWHC and affiliates at March 27, 1999 was $576 million ($622 million at the end of 1998). Subsequent to the filing of the petition, the Corporation committed to provide MWHC up to $1.0 billion in debtor-in-possession financing, a majority of which has been syndicated: the Corporation's loans under this facility at March 27, 1999 were approximately $149 million. The Corporation also provides revolving credit card financing directly to customers of MWHC and affiliates; such receivables totaled $3.0 billion at March 27, 1999, including $1.8 billion that have been sold with recourse. The obligations of customers with respect to these receivables are not affected by the bankruptcy filing. On April 30, 1999, MWHC filed a plan of reorganization that, if approved, would allow MWHC to emerge from bankruptcy in August 1999. As part of the restructuring provided for in the plan, the Corporation will acquire The Signature Group, which was not in bankruptcy, as well as the equity of the reorganized retailer. The Corporation held loans and leases to commercial airlines amounting to $10.4 billion at March 27, 1999, up from $10.2 billion at the end of 1998. OTHER MATTERS YEAR 2000 As discussed in the Corporation's Annual Report on Form 10-K for the year ended December 31, 1998, the Corporation is applying a Six Sigma quality approach to identify and mitigate Year 2000 issues in its information systems, products and services, facilities and suppliers, as well as to assess the extent to which Year 2000 issues will affect its customers. That approach includes a fourth and final phase - the control phase - for the completion, testing and continued monitoring of Year 2000 readiness and the completion of necessary contingency plans. The Corporation is developing, testing and implementing contingency plans to ameliorate any potential internal or external disruption of critical business processes. The specific actions identified in such contingency plans differ depending on circumstances, but most often include manual work-arounds, deployment of backup or secondary technologies, rearranging work schedules, and substitution of suppliers, as appropriate. While the Corporation does not expect significant disruptions of 8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS (Continued). critical business processes caused by internal Year 2000 issues, the likelihood of externally-caused disruptions and the ability of the contingency plans to ameliorate the effects of any such externally-caused disruptions is not determinable. The total estimate of Year 2000 expenditures, adjusted for increases related to acquired companies, is in line with previous projections. The activities related to Year 2000 efforts necessarily involve estimates and projections of activities and resources that will be required in the future. These estimates and projections could change as work progresses. 9 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 THREE MONTHS ENDED MARCH 27, 1999 (Unaudited) RATIO OF EARNINGS TO COMBINED FIXED RATIO OF CHARGES EARNINGS AND TO PREFERRED FIXED STOCK (Dollar amounts in millions) CHARGES DIVIDENDS -------- -------- Net earnings ........................................... $ 905 $ 905 Provision for income taxes ............................. 305 305 Minority interest in net earnings of consolidated affiliates ............................................ 15 15 -------- -------- Earnings before provision for income taxes and minority interest ..................................... 1,225 1,225 -------- -------- Fixed charges: Interest ............................................. 2,075 2,075 One-third of rentals ................................. 86 86 -------- -------- Total fixed charges .................................... 2,161 2,161 -------- -------- Less interest capitalized, net of amortization ......... 24 24 -------- -------- Earnings before provision for income taxes and minority interest, plus fixed charges ................. $ 3,362 $ 3,362 ======== ======== Ratio of earnings to fixed charges ..................... 1.56 ======== Preferred stock dividend requirements .................. $ 25 Ratio of earnings before provision for income taxes to net earnings .......................................... 1.34 Preferred stock dividend factor on pre-tax basis ....... 33 Fixed charges .......................................... 2,161 -------- Total fixed charges and preferred stock dividend requirements .......................................... $ 2,194 ======== 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. 10 PART II--OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. a. EXHIBITS. 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. 11 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: May 11, 1999 By: /s/ J.A. Parke -------------------------------- J.A. Parke, Executive Vice President and Chief Financial Officer (Principal Financial Officer) Date: May 11, 1999 By: /s/ J.C. Amble -------------------------------- J.C. Amble, Vice President and Controller (Principal Accounting Officer) 12 GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES INDEX TO EXHIBITS EXHIBIT NO. PAGE - ----------- -------- 12 Computation of ratio of earnings to fixed charges and computation of ratio of earnings to combined fixed charges and preferred stock dividends ........ 10 27 Financial Data Schedule (filed electronically only) 13 EX-12 2 EXHIBIT 12 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 THREE MONTHS ENDED MARCH 27, 1999 (Unaudited) RATIO OF EARNINGS TO COMBINED FIXED RATIO OF CHARGES EARNINGS AND TO PREFERRED FIXED STOCK (Dollar amounts in millions) CHARGES DIVIDENDS -------- -------- Net earnings ........................................... $ 905 $ 905 Provision for income taxes ............................. 305 305 Minority interest in net earnings of consolidated affiliates ............................................ 15 15 -------- -------- Earnings before provision for income taxes and minority interest ..................................... 1,225 1,225 -------- -------- Fixed charges: Interest ............................................. 2,075 2,075 One-third of rentals ................................. 86 86 -------- -------- Total fixed charges .................................... 2,161 2,161 -------- -------- Less interest capitalized, net of amortization ......... 24 24 -------- -------- Earnings before provision for income taxes and minority interest, plus fixed charges ................. $ 3,362 $ 3,362 ======== ======== Ratio of earnings to fixed charges ..................... 1.56 ======== Preferred stock dividend requirements .................. $ 25 Ratio of earnings before provision for income taxes to net earnings .......................................... 1.34 Preferred stock dividend factor on pre-tax basis ....... 33 Fixed charges .......................................... 2,161 -------- Total fixed charges and preferred stock dividend requirements .......................................... $ 2,194 ======== 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 MARCH 27, 1999, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 0000040554 GENERAL ELECTRIC CAPITAL CORPORATION 1,000,000 3-MOS DEC-31-1999 MAR-27-1999 3,149 56,210 122,667 3,226 613 0 32,972 8,949 270,553 0 58,624 0 3 768 20,684 270,553 1,640 10,190 1,511 0 2,965 378 2,020 1,210 305 905 0 0 0 905 0.00 0.00
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