-----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, TXh+X3woKu0wTxDkgWfTvpRikcLOg9RCNKTZ8PX71w2U+/vkU8qHoBUjj310IRKy slE7rBr8N9aPdks+zoi6CQ== 0000040554-00-000024.txt : 20000516 0000040554-00-000024.hdr.sgml : 20000516 ACCESSION NUMBER: 0000040554-00-000024 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20000401 FILED AS OF DATE: 20000515 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: 632046 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 10Q 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 April 1, 2000 ------------- 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 15, 2000, 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 ............... 9 PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K ............................................... 10 Signatures ................................................................................ 11
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 ------------------------------------ April 1, March 27, (In millions) 2000 1999 ----------------- ----------------- Revenues Revenues from services ....................................... $ 11,072 $ 8,550 Sales of goods ............................................... 2,233 1,640 ----------------- ----------------- 13,305 10,190 ----------------- ----------------- Expenses Interest ..................................................... 2,424 2,020 Operating and administrative ................................. 4,044 2,965 Cost of goods sold ........................................... 2,070 1,511 Insurance losses and policyholder and annuity benefits ....... 1,528 1,413 Provision for losses on financing receivables ................ 508 378 Depreciation and amortization of buildings and equipment and equipment on operating leases ............................. 956 678 Minority interest in net earnings of consolidated affiliates . 19 15 ----------------- ----------------- 11,549 8,980 ----------------- ----------------- Earnings Earnings before income taxes ................................. 1,756 1,210 Provision for income taxes.................................... (549) (305) ----------------- ----------------- Net Earnings ................................................. 1,207 905 Dividends .................................................... (471) (411) Retained earnings at beginning of period ..................... 17,011 14,340 ----------------- ----------------- Retained earnings at end of period ........................... $ 17,747 $ 14,834 ================= =================
See Notes to Condensed, Consolidated Financial Statements. 1
GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES Condensed Statement of Financial Position April 1, December 31, (In millions) 2000 1999 ----------------- ----------------- (Unaudited) Assets Cash and equivalents ...................................................... $ 15,761 $ 6,505 Investment securities ..................................................... 60,037 59,173 Financing receivables: Time sales and loans, net of deferred income ........................... 95,722 91,381 Investment in financing leases, net of deferred income ................. 46,628 47,764 ----------------- ----------------- 142,350 139,145 Allowance for losses on financing receivables .......................... (3,886) (3,708) ----------------- ----------------- Financing receivables - net ......................................... 138,464 135,437 Other receivables - net ................................................... 19,379 21,263 Inventories ............................................................... 1,248 1,209 Equipment on operating leases (at cost), less accumulated amortization of $7,611 and $7,391 ...................................................... 23,624 23,603 Intangible assets ......................................................... 13,542 13,073 Other assets .............................................................. 49,319 47,178 ----------------- ----------------- Total assets ...................................................... $ 321,374 $ 307,441 ================= ================= Liabilities and share owner's equity Short-term borrowings ..................................................... $ 115,911 $ 123,073 Long-term borrowings: Senior ................................................................. 70,181 68,165 Subordinated ........................................................... 697 697 Insurance liabilities, reserves and annuity benefits ...................... 82,311 60,775 Other liabilities ......................................................... 19,133 21,437 Deferred income taxes ..................................................... 8,571 8,781 ----------------- ----------------- Total liabilities ................................................. 296,804 282,928 ----------------- ----------------- Minority interest in equity of consolidated affiliates .................... 1,380 1,767 ----------------- ----------------- Accumulated unrealized losses on investment securities - net .............. (362) (163) Accumulated foreign currency translation adjustments ...................... (349) (256) ----------------- ----------------- Accumulated non-owner changes in share owner's equity ..................... (711) (419) Capital stock ............................................................. 771 771 Additional paid-in capital ................................................ 5,383 5,383 Retained earnings ......................................................... 17,747 17,011 ----------------- ----------------- Total share owner's equity ........................................ 23,190 22,746 ----------------- ----------------- Total liabilities and share owner's equity ........................ $ 321,374 $ 307,441 ================= =================
See Notes to Condensed, Consolidated Financial Statements. 2
GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES Condensed Statement of Cash Flows (Unaudited) Three Months Ended ------------------------------------- April 1, March 27, (In millions) 2000 1999 ----------------- ------------------ Cash Flows From Operating Activities Net earnings .............................................................. $ 1,207 $ 905 Adjustments to reconcile net earnings to cash provided from operating activities: Provision for losses on financing receivables ........................ 508 378 Depreciation and amortization of buildings and equipment and equipment on operating leases ...................................... 956 678 Decrease in acquired insurance policyholder liabilities and reserves (Note 5) ........................................................... Other - net .......................................................... (2,171) 465 ----------------- ------------------ Cash from operating activities .................................... 500 2,426 ----------------- ------------------ Cash Flows From Investing Activities Increase in loans to customers ............................................ (23,012) (18,624) Principal collections from customers - loans .............................. 22,188 17,868 Investment in equipment for financing leases .............................. (4,131) (3,509) Principal collections from customers - financing leases ................... 4,474 3,247 Net change in credit card receivables ..................................... 177 763 Buildings and equipment and equipment on operating leases: - additions .......................................................... (2,410) (1,365) - dispositions ....................................................... 1,200 868 Payments for principal businesses purchased, net of cash acquired ......... (3) (3,880) Purchases of securities by insurance and annuity businesses ............... (8,913) (3,271) Dispositions and maturities of securities by insurance and annuity businesses .............................................................. 6,680 2,835 Other - net ............................................................... 3,090 (489) ----------------- ------------------ Cash used for investing activities ................................ (660) (5,557) ----------------- ------------------ Cash Flows From Financing Activities Net change in borrowings (maturities 90 days or less) ..................... (7,403) 3,487 Newly issued debt - short-term (maturities 91-365 days) ................. 1,287 1,354 - long-term (longer than one year) ................... 7,183 5,807 Proceeds - non-recourse, leveraged lease debt ............................. 161 165 Repayments and other reductions: - short-term (maturities 91-365 days) ................. (3,681) (6,512) - long-term (longer than one year) .................... (444) (774) Principal payments - non-recourse, leveraged lease debt ................... (101) (206) Proceeds from sales of investment contracts ............................... 1,946 1,543 Cash received upon assumption of Toho Mutual Life Insurance Company insurance liabilities ................................................... 13,177 - Redemption of investment contracts ........................................ (2,238) (1,553) Dividends paid ............................................................ (471) (411) Issuance of preferred stock in excess of par value ........................ - 300 ----------------- ------------------ Cash from financing activities .................................... 9,416 3,200 ----------------- ------------------ Increase in Cash and Equivalents .......................................... 9,256 69 Cash and Equivalents at Beginning of Period ............................... 6,505 3,080 ----------------- ------------------ Cash and Equivalents at End of Period ..................................... $ 15,761 $ 3,149 ================= ==================
See Notes to Condensed, Consolidated Financial Statements. 3 GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES Notes to Condensed, Consolidated Financial Statements (Unaudited) 1. The accompanying condensed quarterly financial statements represent the consolidation 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. The Financial Accounting Standards Board ("FASB") has issued Statement of Financial Accounting Standards ("SFAS") No. 133, Accounting for Derivative Instruments and Hedging Activities, effective for the Corporation on January 1, 2001. Upon adoption, all derivative instruments (including certain derivative instruments embedded in other contracts) will be recognized in balance sheets at fair value, and changes in such fair values must be recognized immediately in earnings unless specific hedging criteria are met. Changes in the values of derivatives meeting these hedging criteria will ultimately offset related earnings effects of the hedged items; effects of qualifying changes in fair value are to be recorded in equity pending recognition in earnings. Certain significant refinements and interpretations of SFAS No. 133 are being deliberated by the FASB, and the effects on accounting for the Corporation's financial instruments will depend to some degree on the results of such deliberations. Management has not determined the total probable effects on its financial statements of adopting SFAS No. 133, and does not believe that an estimate of such effects would be meaningful at this time. 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 April 1, March 27, 1999 (In millions) 2000 ----------------- ----------------- Net earnings .............................................................. $ 1,207 $ 905 Unrealized gains (losses) on investment securities - net .................. (199) (360) Foreign currency translation adjustments .................................. (93) (49) ----------------- ----------------- Total ................................................................... $ 915 $ 496 ================= =================
5. On March 1, 2000, the insurance policies and related assets of Toho Mutual Life Insurance Company were transferred to GE Edison Life Insurance Company ("GE Edison"), a subsidiary of GE Financial Assurance Holdings, Inc., a wholly-owned, direct subsidiary of GECC. Total cash, investment securities and time sales and loans acquired by GE Edison was $19.7 billion, and restructured insurance contracts and other liabilities assumed were $21.5 billion. 4 6. Revenues and net earnings of the Corporation, by o perating segment, for the three months ended April 1, 2000 and March 27, 1999 were as follows:
Three Months Ended ----------------------------------- April 1, March 27, (In millions) 2000 1999 ---------------- ---------------- Revenues Consumer Services ............................................ $ 5,409 $ 4,378 Equipment Management ......................................... 3,718 3,545 Mid-Market Financing ......................................... 1,256 999 Specialized Financing ........................................ 1,681 777 Specialty Insurance .......................................... 411 425 All other .................................................... 830 66 ---------------- ---------------- Total revenues ............................................. $ 13,305 $ 10,190 ================ ================ Net Earnings Consumer Services ............................................ $ 275 $ 221 Equipment Management ......................................... 151 210 Mid-Market Financing ......................................... 152 114 Specialized Financing ........................................ 592 194 Specialty Insurance .......................................... 119 123 All other .................................................... (82) 43 ---------------- ---------------- Total net earnings ......................................... $ 1,207 $ 905 ================ ================
5 Item 2. Management's Discussion and Analysis of Results of Operations Overview Net earnings for the first three months of 2000 were $1,207 million, a $302 million (33%) increase over the first three months of 1999. The results reflected the globalization and diversity of the Corporation's businesses. The improvement in earnings was largely attributable to the effects of continued asset growth, principally from acquisitions of businesses and portfolios. Operating Results Total Revenues from all sources increased $3,115 million (31%) to $13,305 million for the first three months of 2000, compared with $10,190 million for the first three months of 1999. This increase primarily reflected core growth and asset gains in the Specialized Financing segment, a combination of core and acquisition growth in the Consumer Services segment, and core growth in the Mid-Market Financing segment. Interest expense for the first three months of 2000 was $2,424 million, 20% higher than for the first three months of 1999. The increase primarily reflected the effects of higher average borrowings used to finance asset growth. The composite interest rate on the Corporation's borrowings for the first three months of 2000 was 5.52% compared with 5.32% in the first three months of 1999. Operating and administrative expenses were $4,044 million for the first three months of 2000, a 36% increase over the first three months of 1999. The increase primarily reflected costs associated with businesses and portfolios acquired over the past year and increases in insurance commissions. Cost of goods sold is associated with activities of the Corporation's computer equipment distribution business and retail operations. This cost amounted to $2,070 million for the first three months of 2000, compared with $1,511 million for the first three months of 1999. The increase primarily reflected the consolidation of the retail operation. Insurance losses and policyholder and annuity benefits increased $115 million to $1,528 million for the first three months of 2000, compared with the first three months of 1999. The increase primarily reflected the effects of business acquisitions and growth in premium volume throughout the period, partially offset by improved market conditions in the mortgage insurance business. Provision for losses on financing receivables was $508 million for the first three months of 2000 compared with $378 million for the first three months of 1999. 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 $278 million to $956 million for the first three months of 2000 compared with $678 million for the first three months of 1999. The increase was principally the result of higher shorter-lived levels of equipment on operating leases, primarily reflecting acquisition growth. Provision for income taxes was $549 million for the first three months of 2000 (an effective tax rate of 31.3%), compared with $305 million for the first three months of 1999 (an effective tax rate of 25.2%). The higher provision for income taxes primarily reflected increased non-U.S. earnings. 6 Operating Segments Revenues and net earnings of the Corporation, by operating segment, for the three months ended April 1, 2000 and March 27, 1999 are summarized and discussed below.
Three Months Ended -------------------------------------- April 1, March 27, (In millions) 2000 1999 ----------------- ------------------ Revenues Consumer Services ................................................. $ 5,409 $ 4,378 Equipment Management .............................................. 3,718 3,545 Mid-Market Financing .............................................. 1,256 999 Specialized Financing ............................................. 1,681 777 Specialty Insurance ............................................... 411 425 All other ......................................................... 830 66 ----------------- ------------------ Total revenues ................................................. $ 13,305 $ 10,190 ================= ================== Net Earnings Consumer Services ................................................. $ 275 $ 221 Equipment Management .............................................. 151 210 Mid-Market Financing .............................................. 152 114 Specialized Financing ............................................. 592 194 Specialty Insurance ............................................... 119 123 All other ......................................................... (82) 43 ----------------- ------------------ Total net earnings ............................................. $ 1,207 $ 905 ================= ==================
Consumer Services revenues increased 24% and net earnings increased 24% for the first three months of 2000, compared with the first three months of 1999. The increase in revenues was led by acquisition-related and core growth in the consumer savings and insurance, U.S. consumer credit card, and non-U.S. consumer finance businesses, partially offset by the effects of asset reductions in automobile financing activities. The increase in net earnings was led by a combination of acquisition-related growth in the consumer savings and insurance business and acquisition-related growth and asset gains in the U.S. consumer credit card business. Equipment Management revenues grew 5% for the first three months of 2000, compared with the corresponding period in 1999 primarily as a result of acquisition-related and core growth in fleet services and core growth in aviation services, partially offset by volume declines in the European information technology products and services business. The net earnings decreased 28% for the first three months of 2000, compared with the corresponding period in 1999 primarily attributable to volume declines in the European information technology products and services business, partially offset by core growth in the commercial aircraft management business and the satellite service business. Mid-Market Financing revenues grew 26% and net earnings increased 33% for the first three months of 2000, compared with the corresponding period in 1999, primarily as a result of core growth from increased originations. Specialized Financing revenues rose 116%, while net earnings increased 205% in the first three months of 2000, compared with the first three months of 1999. Revenues principally reflect increases in asset gains as well as origination growth. Revenue and net earnings growth in both years is principally the result of result of operating strength led by gains on sale of equity investments. Specialty Insurance revenues decreased 3% in the first three months of 2000, compared with the corresponding period in 1999, principally resulting from lower net realized investment gains. Net earnings decreased 3% in the same period also reflecting lower net realized investment gains partially offset by improved conditions in the mortgage insurance business. All Other growth in revenues and increase in net loss were primarily the result of the consolidation of the retail operation. For the first three months of 2000, the retail business had revenues of $719 million and a net loss of $80 million. 7 Portfolio Quality Financing receivables are the financing businesses' largest asset and their primary source of revenues. The portfolio of financing receivables, before allowance for losses, increased to $142.4 billion at April 1, 2000, from $139.1 billion at the end of 1999, primarily reflecting the effects of acquisition growth and higher origination volume, partially offset by foreign currency translation on European financing receivables. The related allowance for losses at April 1, 2000 amounted to $3.9 billion ($3.7 billion at the end of 1999) and represents management's best estimate of probable losses inherent in the portfolio given its strength and diversity, and current economic circumstances. 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. Consumer financing receivables, primarily credit card and personal loans and auto loans and leases, were $49.4 billion at April 1, 2000, a decrease of $1.3 billion from the end of 1999. Nonearning receivables remained steady at $0.9 billion, 1.8% of total consumer financing receivables, at April 1, 2000 and December 31, 1999. Write-offs of consumer receivables increased to $0.4 billion for the first three months of 2000 compared with $0.3 billion for the first three months of 1999. This increase was primarily attributable to the effects of higher average revolving product receivable balances resulting from acquisitions. Other financing receivables, totaling $93.0 billion at April 1, 2000 ($88.4 billion at December 31, 1999), consisted of a diverse commercial, industrial and equipment loan and lease portfolio. Related nonearning and reduced-earning receivables were $1.0 billion at April 1, 2000, compared with $0.9 billion at year-end 1999. The Corporation held loans and leases to commercial airlines amounting to $12.0 billion at April 1, 2000, up from $11.8 billion at the end of 1999. Statement of Financial Condition The Corporation's assets increased by $13.9 billion from the end of 1999, largely a result of acquisition of certain assets and liabilities of Toho Mutual Life Insurance Company ("Toho"), an entity that was insolvent when acquired. That acquisition included approximately $13 billion in cash, as well as financing receivables and other assets, in exchange for assuming Toho's existing insurance policyholder liabilities. The significant cash position of Toho at the date of acquisition reflects the liquidity needs of the business, particularly policyholder redemptions expected to occur over the succeeding six months. Statement of Cash Flows The Corporation's cash and equivalents increased by $9.3 billion during the first quarter of 2000 to $15.8 billion, principally as a result of cash acquired in connection with the Toho acquisition. Cash provided from operating activities amounted to $500 million during the first three months of 2000. The decrease in cash from operating activities compared with last year was largely attributable to insurance policyholder redemptions associated with the Toho acquisition. Cash from financing activities totaled $9.4 billion, primarily as a result of insurance policyholder liabilities assumed in the Toho acquisition, the effect of which was partially offset by net reductions in debt. The principal use of cash during the period was for investing activities ($0.7 billion), a majority of which was attributable to net purchases of securities by insurance and annuity businesses. 8 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 April 1, 2000 (Unaudited) Ratio of Earnings to Combined Fixed Ratio of Charges and Earnings to Preferred Stock (Dollar Amounts In millions) Fixed Charges Dividends ----------------- ----------------- Net earnings ................................................................ $ 1,207 $ 1,207 Provision for income taxes .................................................. 549 549 Minority interest in net earnings of consolidated affiliates ................ 19 19 ----------------- ----------------- Earnings before provision for income taxes and minority interest ............ 1,775 1,775 ----------------- ----------------- Fixed charges: Interest ................................................................. 2,524 2,524 One-third of rentals ..................................................... 104 104 ----------------- ----------------- Total fixed charges ......................................................... 2,628 2,628 Less interest capitalized, net of amortization .............................. (25) (25) ----------------- ----------------- Earnings before provision for income taxes and minority interest, plus fixed charges .................................................................. $ 4,378 $ 4,378 ================= ================= Ratio of earnings to fixed charges .......................................... 1.67 ================= Preferred stock dividend requirements ....................................... $ 31 Ratio of earnings before provision for income taxes to net earnings ......... 1.45 ----------------- Preferred stock dividend factor on pre-tax basis ............................ 45 Fixed charges ............................................................... 2,628 ----------------- Total fixed charges and preferred stock dividend requirements ............... $ 2,673 ================= Ratio of earnings to combined fixed charges and preferred stock dividends ... 1.64 =================
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. 9 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. 10 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 15, 2000 By: /s/ J.A. Parke ------------------------------------- J.A. Parke, Executive Vice President and Chief Financial Officer (Principal Financial Officer) Date: May 15, 2000 By: /s/ J.C. Amble ------------------------------------- J.C. Amble, Vice President and Controller (Principal Accounting Officer) 11 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 ... 13 27 Financial Data Schedule (filed electronically only) 12 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 April 1, 2000 (Unaudited) Ratio of Earnings to Combined Fixed Ratio of Charges and Earnings to Preferred Stock (Dollar Amounts In millions) Fixed Charges Dividends ----------------- ----------------- Net earnings ................................................................ $ 1,207 $ 1,207 Provision for income taxes .................................................. 549 549 Minority interest in net earnings of consolidated affiliates ................ 19 19 ----------------- ----------------- Earnings before provision for income taxes and minority interest ............ 1,775 1,775 ----------------- ----------------- Fixed charges: Interest ................................................................. 2,524 2,524 One-third of rentals ..................................................... 104 104 ----------------- ----------------- Total fixed charges ......................................................... 2,628 2,628 Less interest capitalized, net of amortization .............................. (25) (25) ----------------- ----------------- Earnings before provision for income taxes and minority interest, plus fixed charges .................................................................. $ 4,378 $ 4,378 ================= ================= Ratio of earnings to fixed charges .......................................... 1.67 ================= Preferred stock dividend requirements ....................................... $ 31 Ratio of earnings before provision for income taxes to net earnings ......... 1.45 ----------------- Preferred stock dividend factor on pre-tax basis ............................ 45 Fixed charges ............................................................... 2,628 ----------------- Total fixed charges and preferred stock dividend requirements ............... $ 2,673 ================= Ratio of earnings to combined fixed charges and preferred stock dividends ... 1.64 =================
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. 13 EX-27 3 FDS --
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED APRIL 1, 2000, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 0000040554 GENERAL ELECTRIC CAPITAL CORPORATION 1,000,000 3-MOS DEC-31-2000 APR-01-2000 15,761 60,037 142,350 3,886 1,248 0 31,235 7,611 321,374 0 70,878 0 3 768 23,130 321,374 2,233 13,305 2,070 0 5,572 508 2,424 1,756 549 1,207 0 0 0 1,207 0 0
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