-----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, Fpka2KhXsoKZv60n62/I9fhb0PeNOb1zj6aTJAISW4HAKipgHAlsvmVvZkk2By0R mKUhntTLCHhApkregtPprg== /in/edgar/work/20000726/0000040554-00-000036/0000040554-00-000036.txt : 20000921 0000040554-00-000036.hdr.sgml : 20000921 ACCESSION NUMBER: 0000040554-00-000036 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20000701 FILED AS OF DATE: 20000726 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENERAL ELECTRIC CAPITAL CORP CENTRAL INDEX KEY: 0000040554 STANDARD INDUSTRIAL CLASSIFICATION: [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: 679448 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 0001.txt 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 July 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 July 26, 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 Six Months Ended ----------------------------------- ------------------------------------- July 1, June 26, July 1, June 26, (In millions) 2000 1999 2000 1999 ---------------- ----------------- ------------------ ---------------- Revenues Revenues from services ............................. $ 11,327 $ 9,168 $ 22,399 $ 17,718 Sales of goods ..................................... 2,405 1,961 4,638 3,601 ---------------- ----------------- ------------------ ---------------- 13,732 11,129 27,037 21,319 ---------------- ----------------- ------------------ ---------------- Expenses Interest ........................................... 2,660 2,133 5,084 4,153 Operating and administrative ....................... 3,965 3,210 8,009 6,175 Cost of goods sold ................................. 2,238 1,806 4,308 3,317 Insurance losses and policyholder and annuity benefits 2,166 1,324 3,694 2,737 Provision for losses on financing receivables ...... 406 441 914 819 Depreciation and amortization of buildings and equipment and equipment on operating leases ................... 683 815 1,639 1,493 Minority interest in net earnings of consolidated affiliates 21 18 40 33 ---------------- ----------------- ------------------ ---------------- 12,139 9,747 23,688 18,727 ---------------- ----------------- ------------------ ---------------- Earnings Earnings before income taxes ....................... 1,593 1,382 3,349 2,592 Provision for income taxes.......................... (391) (350) (940) (655) ---------------- ----------------- ------------------ ---------------- Net Earnings ....................................... 1,202 1,032 2,409 1,937 Dividends .......................................... (474) (434) (945) (845) Retained earnings at beginning of period ........... 17,747 14,834 17,011 14,340 ---------------- ----------------- ------------------ ---------------- Retained earnings at end of period ................. $ 18,475 $ 15,432 $ 18,475 $ 15,432 ================ ================= ================== ================
See Notes to Condensed, Consolidated Financial Statements. 1
GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES Condensed Statement of Financial Position July 1, December 31, (In millions) 2000 1999 ----------------- ----------------- (Unaudited) Assets Cash and equivalents ...................................................... $ 9,829 $ 6,505 Investment securities ..................................................... 63,049 59,173 Financing receivables: Time sales and loans, net of deferred income ........................... 96,612 91,381 Investment in financing leases, net of deferred income ................. 48,508 47,764 ----------------- ----------------- 145,120 139,145 Allowance for losses on financing receivables .......................... (3,866) (3,708) ----------------- ----------------- Financing receivables - net ......................................... 141,254 135,437 Other receivables - net ................................................... 18,018 21,263 Inventories ............................................................... 1,315 1,209 Equipment on operating leases (at cost), less accumulated amortization of $7,711 and $7,391 ...................................................... 24,529 23,603 Intangible assets ......................................................... 13,627 13,073 Other assets .............................................................. 50,838 47,178 ----------------- ----------------- Total assets ...................................................... $ 322,459 $ 307,441 ================= ================= Liabilities and share owner's equity Short-term borrowings ..................................................... $ 115,137 $ 123,073 Long-term borrowings: Senior ................................................................. 73,595 68,165 Subordinated ........................................................... 697 697 Insurance liabilities, reserves and annuity benefits ...................... 80,240 60,775 Other liabilities ......................................................... 19,421 21,437 Deferred income taxes ..................................................... 8,571 8,781 ----------------- ----------------- Total liabilities ................................................. 297,661 282,928 ----------------- ----------------- Minority interest in equity of consolidated affiliates .................... 1,388 1,767 ----------------- ----------------- Accumulated unrealized losses on investment securities - net .............. (858) (163) Accumulated foreign currency translation adjustments ...................... (361) (256) ----------------- ----------------- Accumulated non-owner changes in share owner's equity ..................... (1,219) (419) Capital stock ............................................................. 771 771 Additional paid-in capital ................................................ 5,383 5,383 Retained earnings ......................................................... 18,475 17,011 ----------------- ----------------- Total share owner's equity ........................................ 23,410 22,746 ----------------- ----------------- Total liabilities and share owner's equity ........................ $ 322,459 $ 307,441 ================= =================
See Notes to Condensed, Consolidated Financial Statements. 2
GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES Condensed Statement of Cash Flows (Unaudited) Six Months Ended ------------------------------------- July 1, June 26, (In millions) 2000 1999 ----------------- ------------------ Cash Flows From Operating Activities Net earnings .............................................................. $ 2,409 $ 1,937 Adjustments to reconcile net earnings to cash provided from operating activities: Provision for losses on financing receivables ........................ 914 819 Depreciation and amortization of buildings and equipment and equipment on operating leases ...................................... 1,639 1,493 Other - net .......................................................... (3,477) 3,191 ----------------- ------------------ Cash from operating activities .................................... 1,485 7,440 ----------------- ------------------ Cash Flows From Investing Activities Increase in loans to customers ............................................ (47,603) (39,179) Principal collections from customers - loans .............................. 45,046 34,364 Investment in equipment for financing leases .............................. (9,159) (7,949) Principal collections from customers - financing leases ................... 7,211 6,419 Net change in credit card receivables ..................................... (717) 858 Buildings and equipment and equipment on operating leases: - additions .......................................................... (5,666) (4,153) - dispositions ....................................................... 3,209 3,784 Payments for principal businesses purchased, net of cash acquired ......... (315) (5,733) Purchases of securities by insurance and annuity businesses ............... (12,059) (7,244) Dispositions and maturities of securities by insurance and annuity businesses .............................................................. 7,568 6,073 Other - net ............................................................... 1,634 (2,831) ----------------- ------------------ Cash used for investing activities ................................ (10,851) (15,591) ----------------- ------------------ Cash Flows From Financing Activities Net change in borrowings (maturities 90 days or less) ..................... 521 6,547 Newly issued debt - short-term (maturities 91-365 days) ................. 3,859 2,541 - long-term (longer than one year) ................... 14,756 11,455 Proceeds - non-recourse, leveraged lease debt ............................. 383 320 Repayments and other reductions: - short-term (maturities 91-365 days) ................. (16,896) (10,249) - long-term (longer than one year) .................... (1,555) (1,130) Principal payments - non-recourse, leveraged lease debt ................... (118) (228) Proceeds from sales of investment contracts ............................... 4,057 3,576 Cash received upon assumption of Toho Mutual Life Insurance Company insurance liabilities ................................................... 13,177 - Redemption of investment contracts ........................................ (4,549) (3,384) Dividends paid ............................................................ (945) (845) Issuance of preferred stock in excess of par value ........................ - 315 ----------------- ------------------ Cash from financing activities .................................... 12,690 8,918 ----------------- ------------------ Increase in Cash and Equivalents .......................................... 3,324 767 Cash and Equivalents at Beginning of Period ............................... 6,505 3,080 ----------------- ------------------ Cash and Equivalents at End of Period ..................................... $ 9,829 $ 3,847 ================= ================== 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, then subsequently amended, 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. Management has not determined the total probable effects on its financial statements of adopting SFAS No. 133, as amended, 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 July 1, June 26, (In millions) 2000 1999 ----------------- ----------------- Net earnings .............................................................. $ 1,202 $ 1,032 Unrealized losses on investment securities - net .......................... (496) (1,104) Foreign currency translation adjustments .................................. (12) (13) ----------------- ----------------- Total ................................................................... $ 694 $ (85) ================= =================
Six Months Ended July 1, June 26, (In millions) 2000 1999 ----------------- ----------------- Net earnings .............................................................. $ 2,409 $ 1,937 Unrealized losses on investment securities - net .......................... (695) (1,464) Foreign currency translation adjustments .................................. (105) (62) ----------------- ----------------- Total ................................................................... $ 1,609 $ 411 ================= =================
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 operating segment, for the three and six months ended July 1, 2000 and June 26, 1999 were as follows:
Three Months Ended Six Months Ended ---------------------------------- ----------------------------------- July 1, June 26, 1999 July 1, June 26, (In millions) 2000 2000 1999 ---------------- ---------------- ---------------- ---------------- Revenues Consumer Services ...................................... $ 6,165 $ 4,457 $ 11,575 $ 8,834 Equipment Management ................................... 3,652 4,073 7,370 7,618 Mid-Market Financing ................................... 1,307 1,128 2,563 2,127 Specialized Financing .................................. 1,368 988 3,049 1,765 Specialty Insurance .................................... 424 414 835 839 All other .............................................. 816 69 1,645 136 ---------------- ---------------- ---------------- ---------------- Total revenues ....................................... $ 13,732 $ 11,129 $ 27,037 $ 21,319 ================ ================ ================ ================ Net Earnings Consumer Services ..................................... $ 333 $ 229 $ 609 $ 450 Equipment Management .................................. 167 222 318 432 Mid-Market Financing .................................. 147 128 299 242 Specialized Financing ................................. 406 280 998 474 Specialty Insurance ................................... 124 156 243 279 All other ............................................. 25 17 (58) 60 ---------------- ---------------- ---------------- ---------------- Total net earnings .................................. $ 1,202 $ 1,032 $ 2,409 $ 1,937 ================ ================ ================ ================
5 Item 2. Management's Discussion and Analysis of Results of Operations Overview Net earnings for the first six months of 2000 were $2,409 million, a $472 million (24%) increase over the first six months of 1999. The results reflected the globalization and diversity of the Corporation's businesses. The improvement in earnings was largely attributable to higher levels of asset gains and the effects of continued asset growth, principally from acquisitions of businesses and portfolios. Operating Results Total Revenues from all sources increased $5,718 million (27%) to $27,037 million for the first six months of 2000, compared with $21,319 million for the first six months of 1999. This increase primarily reflected a combination of acquisition and core growth in the Consumer Services segment, asset gains and core growth in the Specialized Financing segment, and core growth in the Specialty Insurance and Mid-Market Financing segments. Interest expense for the first six months of 2000 was $5,084 million, 22% higher than for the first six months of 1999. The increase reflected higher interest rates and higher average borrowings used to finance asset growth. The composite interest rate on the Corporation's borrowings for the first six months of 2000 was 5.64% compared with 5.20% in the first six months of 1999. Operating and administrative expenses were $8,009 million for the first six months of 2000, a 30% increase over the first six months of 1999. The increase primarily reflected increases in insurance commissions and other costs associated with businesses and portfolios acquired over the past year. Excluding the effects of other costs associated with businesses and portfolios acquired over the past year, operating and administrative expenses would have increased less than 10%. Cost of goods sold is associated with activities of the Corporation's computer equipment distribution business and retail operation. This cost amounted to $4,308 million for the first six months of 2000, compared with $3,317 million for the first six months of 1999. The increase primarily reflected the consolidation of the retail operation. Insurance losses and policyholder and annuity benefits increased $957 million to $3,694 million for the first six months of 2000, compared with the first six 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 $914 million for the first six months of 2000 compared with $819 million for the first six 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 $146 million to $1,639 million for the first six months of 2000 compared with $1,493 million for the first six 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 $940 million for the first six months of 2000 (an effective tax rate of 28.1%), compared with $655 million for the first six months of 1999 (an effective tax rate of 25.3%). The higher effective tax rate primarily reflected increased earnings taxed at statutory rates. 6 Operating Segments Revenues and net earnings of the Corporation, by operating segment, for the three and six months ended July 1, 2000 and June 26, 1999 are summarized and discussed below.
Three Months Ended Six Months Ended ---------------------------------- ----------------------------------- July 1, June 26, 1999 July 1, June 26, (In millions) 2000 2000 1999 ---------------- ---------------- ---------------- ---------------- Revenues Consumer Services ...................................... $ 6,165 $ 4,457 $ 11,575 $ 8,834 Equipment Management ................................... 3,652 4,073 7,370 7,618 Mid-Market Financing ................................... 1,307 1,128 2,563 2,127 Specialized Financing .................................. 1,368 988 3,049 1,765 Specialty Insurance .................................... 424 414 835 839 All other .............................................. 816 69 1,645 136 ---------------- ---------------- ---------------- ---------------- Total revenues ....................................... $ 13,732 $ 11,129 $ 27,037 $ 21,319 ================ ================ ================ ================ Net Earnings Consumer Services ..................................... $ 333 $ 229 $ 609 $ 450 Equipment Management .................................. 167 222 318 432 Mid-Market Financing .................................. 147 128 299 242 Specialized Financing ................................. 406 280 998 474 Specialty Insurance ................................... 124 156 243 279 All other ............................................. 25 17 (58) 60 ---------------- ---------------- ---------------- ---------------- Total net earnings .................................. $ 1,202 $ 1,032 $ 2,409 $ 1,937 ================ ================ ================ ================
Consumer Services revenues increased 31% and net earnings increased 35% for the first six months of 2000, compared with the first six 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 core growth in the U.S. consumer credit card business and acquisition-related growth in the consumer savings and insurance business. Equipment Management revenues decreased 3% for the first six months of 2000, compared with the corresponding period in 1999, primarily as a result of volume declines in the European information technology products and services business, partially offset by acquisition-related growth in fleet services and core growth in aviation services. Net earnings decreased 26% for the first six months of 2000, compared with the corresponding period in 1999 primarily attributable to volume declines in the European information technology products and services business and reduced asset gains in the railcar business, partially offset by core growth in aviation services. Mid-Market Financing revenues grew 21% and net earnings increased 24% for the first six months of 2000, compared with the corresponding period in 1999, primarily as a result of core growth from increased originations. Specialized Financing revenues rose 73%, while net earnings increased 111% in the first six months of 2000 compared with the first six months of 1999. Revenues principally reflect increases in asset gains as well as origination growth. Net earnings growth is principally the result of operating strength led by gains on sale of equity investments. Specialty Insurance revenues decreased 1% in the first six months of 2000, compared with the corresponding period in 1999, principally resulting from lower net realized investment gains. Net earnings decreased 13% 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. 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 $145.1 billion at July 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 July 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 $48.0 billion at July 1, 2000, a decrease of $2.7 billion from the end of 1999. Nonearning receivables remained steady at $0.9 billion, 1.9% of total consumer financing receivables, at July 1, 2000 and December 31, 1999. Write-offs of consumer receivables increased to $1.0 billion for the first six months of 2000 compared with $0.8 billion for the first six 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 $97.1 billion at July 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 July 1, 2000, compared with $0.9 billion at year-end 1999. Statement of Financial Position The Corporation's assets increased by $15.0 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 $13.2 billion in cash, as well as financing receivables and other assets, in exchange for assuming Toho's existing policyholder liabilities. The significant cash position of Toho at the date of acquisition reflected the liquidity needs of the business including policyholder redemptions that have occurred through July 1, 2000 and are expected to continue over the remainder of the six month period following the acquisition. Statement of Cash Flows The Corporation's cash and equivalents increased by $3.3 billion during the first half of 2000 to $9.8 billion, principally as a result of cash acquired in connection with the Toho acquisition. Cash provided from operating activities amounted to $1.5 billion during the first six months of 2000 compared with $7.4 billion during the first half of 1999. The decrease in cash from operating activities compared with last year was largely attributable to policyholder redemptions associated with the Toho acquisition and a smaller decrease in mortgages held for resale. Cash from financing activities totaled $12.7 billion, primarily as a result of 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 ($10.9 billion), a majority of which was attributable to investments in securities, financing receivables and equipment on operating leases. 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 Six Months Ended July 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 ................................................................ $ 2,409 $ 2,409 Provision for income taxes .................................................. 940 940 Minority interest in net earnings of consolidated affiliates ................ 40 40 ----------------- ----------------- Earnings before provision for income taxes and minority interest ............ 3,389 3,389 ----------------- ----------------- Fixed charges: Interest ................................................................. 5,248 5,248 One-third of rentals ..................................................... 200 200 ----------------- ----------------- Total fixed charges ......................................................... 5,448 5,448 Less interest capitalized, net of amortization .............................. (54) (54) ----------------- ----------------- Earnings before provision for income taxes and minority interest, plus fixed charges .................................................................. $ 8,783 $ 8,783 ================= ================= Ratio of earnings to fixed charges .......................................... 1.61 ================= Preferred stock dividend requirements ....................................... $ 63 Ratio of earnings before provision for income taxes to net earnings ......... 1.39 ----------------- Preferred stock dividend factor on pre-tax basis ............................ 87 Fixed charges ............................................................... 5,448 ----------------- Total fixed charges and preferred stock dividend requirements ............... $ 5,535 ================= Ratio of earnings to combined fixed charges and preferred stock dividends ... 1.59 =================
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: July 26, 2000 By: /s/ J.A. Parke ------------------------------------- J.A. Parke, Vice Chairman and Chief Financial Officer (Principal Financial Officer) Date: July 26, 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 0002.txt 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 Six Months Ended July 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 ................................................................ $ 2,409 $ 2,409 Provision for income taxes .................................................. 940 940 Minority interest in net earnings of consolidated affiliates ................ 40 40 ----------------- ----------------- Earnings before provision for income taxes and minority interest ............ 3,389 3,389 ----------------- ----------------- Fixed charges: Interest ................................................................. 5,248 5,248 One-third of rentals ..................................................... 200 200 ----------------- ----------------- Total fixed charges ......................................................... 5,448 5,448 Less interest capitalized, net of amortization .............................. (54) (54) ----------------- ----------------- Earnings before provision for income taxes and minority interest, plus fixed charges .................................................................. $ 8,783 $ 8,783 ================= ================= Ratio of earnings to fixed charges .......................................... 1.61 ================= Preferred stock dividend requirements ....................................... $ 63 Ratio of earnings before provision for income taxes to net earnings ......... 1.39 ----------------- Preferred stock dividend factor on pre-tax basis ............................ 87 Fixed charges ............................................................... 5,448 ----------------- Total fixed charges and preferred stock dividend requirements ............... $ 5,535 ================= Ratio of earnings to combined fixed charges and preferred stock dividends ... 1.59 =================
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 0003.txt 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 6-MOS DEC-31-2000 JUL-01-2000 9,829 63,049 145,120 3,866 1,315 0 39,445 10,048 322,459 0 74,292 0 3 768 22,639 322,459 4,638 27,037 4,308 0 13,382 914 5,084 3,349 945 2,409 0 0 0 2,409 0 0
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