10-Q 1 gecc1q01asc.txt FORM 10Q FOR QUARTER ENDED MARCH 31, 2001 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 31, 2001 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 April 18, 2001, 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
3 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 31, April 1, (In millions) 2001 2000 ---------------- ----------------- Revenues Revenues from services ....................................... $ 11,010 $ 11,072 Sales of goods ............................................... 1,068 2,233 ---------------- ----------------- 12,078 13,305 ---------------- ----------------- Expenses Interest ..................................................... 2,744 2,424 Operating and administrative ................................. 3,414 4,044 Cost of goods sold ........................................... 961 2,070 Insurance losses and policyholder and annuity benefits ....... 1,940 1,528 Provision for losses on financing receivables ................ 460 508 Depreciation and amortization of buildings and equipment and equipment on operating leases ............................. 787 956 Minority interest in net earnings of consolidated affiliates . 30 19 ----------------- ---------------- 10,336 11,549 ---------------- ----------------- Earnings Earnings before income taxes and cumulative effect of changes in accounting principle............................ 1,742 1,756 Provision for income taxes.................................... (402) (549) ----------------- ---------------- Earnings before cumulative effect of changes in accounting principle ...................................... 1,340 1,207 Cumulative effect of changes in accounting principle ................................................ (158) - ---------------- ----------------- Net Earnings ................................................. 1,182 1,207 Dividends .................................................... (529) (471) Retained earnings at beginning of period ..................... 19,694 17,011 ----------------- ---------------- Retained earnings at end of period ........................... $ 20,347 $ 17,747 ================ =================
See Notes to Condensed, Consolidated Financial Statements. GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES Condensed Statement of Financial Position
March 31, December 31, (In millions) 2001 2000 ----------------- ----------------- (Unaudited) Assets Cash and equivalents ...................................................... $ 6,045 $ 5,819 Investment securities ..................................................... 71,136 70,282 Financing receivables: Time sales and loans, net of deferred income ........................... 91,778 93,540 Investment in financing leases, net of deferred income ................. 49,840 50,930 ----------------- ----------------- 141,618 144,470 Allowance for losses on financing receivables .......................... (3,899) (3,970) ----------------- ----------------- Financing receivables - net ......................................... 137,719 140,500 Insurance receivables - net ............................................... 12,035 12,060 Other receivables - net ................................................... 14,763 14,308 Inventories ............................................................... 440 666 Equipment on operating leases (at cost), less accumulated amortization of $8,375 and $7,900 ...................................................... 24,128 24,145 Intangible assets ......................................................... 12,557 13,216 Other assets .............................................................. 52,054 51,640 ----------------- ----------------- Total assets ...................................................... $ 330,877 $ 332,636 ================= ================= Liabilities and share owners' equity Short-term borrowings ..................................................... $ 117,383 $ 117,482 Long-term borrowings: Senior ................................................................. 76,208 78,078 Subordinated ........................................................... 698 698 Insurance liabilities, reserves and annuity benefits ...................... 77,295 79,933 Other liabilities ......................................................... 23,368 20,764 Deferred income taxes ..................................................... 8,128 8,264 ----------------- ----------------- Total liabilities ................................................. 303,080 305,219 ----------------- ----------------- Minority interest in equity of consolidated affiliates .................... 1,399 1,344 ----------------- ----------------- Accumulated gains/(losses) - net Investment securities ................................................... 603 (139) Currency translation adjustments ........................................ (466) (600) Derivatives qualifying as hedges ........................................ (1,204) - ----------------- ----------------- Accumulated non-owner changes in share owners' equity ..................... (1,067) (739) Capital stock ............................................................. 771 771 Additional paid-in capital ................................................ 6,347 6,347 Retained earnings ......................................................... 20,347 19,694 ----------------- ----------------- Total share owners' equity ........................................ 26,398 26,073 ----------------- ----------------- Total liabilities and share owners' equity ........................ $ 330,877 $ 332,636 ================= =================
See Notes to Condensed, Consolidated Financial Statements. GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES Condensed Statement of Cash Flows (Unaudited)
Three Months Ended ------------------------------------- March 31, April 1, (In millions) 2001 2000 ----------------- ------------------ Cash Flows From Operating Activities Net earnings .............................................................. $ 1,182 $ 1,207 Adjustments to reconcile net earnings to cash provided from operating activities: Cumulative effect of changes in accounting principle ................. 158 - Provision for losses on financing receivables ........................ 460 508 Depreciation and amortization of buildings and equipment and equipment on operating leases ...................................... 787 936 Other - net .......................................................... (938) (2,151) ----------------- ------------------ Cash from operating activities .................................... 1,649 500 ----------------- ------------------ Cash Flows From Investing Activities Increase in loans to customers ............................................ (30,667) (22,821) Principal collections from customers - loans .............................. 28,888 21,681 Investment in equipment for financing leases .............................. (1,194) (4,131) Principal collections from customers - financing leases ................... 1,549 4,474 Net change in credit card receivables ..................................... 2,442 177 Buildings and equipment and equipment on operating leases: - additions .......................................................... (1,817) (1,935) - dispositions ....................................................... 814 1,180 Payments for principal businesses purchased, net of cash acquired ......... (329) (3) Purchases of securities by insurance and annuity businesses ............... (8,819) (8,913) Dispositions and maturities of securities by insurance and annuity businesses .............................................................. 7,506 6,680 Other - net ............................................................... (41) 2,951 ----------------- ------------------ Cash used for investing activities ................................ (1,668) (660) ----------------- ------------------ Cash Flows From Financing Activities Net change in borrowings (maturities 90 days or less) ..................... (1,620) (7,403) Newly issued debt - short-term (maturities 91-365 days) ................. 984 1,287 - long-term (longer than one year) ................... 5,875 7,183 Proceeds - non-recourse, leveraged lease debt ............................. 326 161 Repayments and other reductions: - short-term (maturities 91-365 days) ................. (886) (3,681) - long-term (longer than one year) .................... (3,433) (444) Principal payments - non-recourse, leveraged lease debt ................... (137) (101) Proceeds from sales of investment contracts ............................... 1,643 1,946 Cash received upon assumption of Toho Mutual Life Insurance Company insurance liabilities ................................................... - 13,177 Redemption of investment contracts ........................................ (1,978) (2,238) Dividends paid ............................................................ (529) (471) ----------------- ------------------ Cash from financing activities .................................... 245 9,416 ----------------- ------------------ Increase in Cash and Equivalents .......................................... 226 9,256 Cash and Equivalents at Beginning of Period ............................... 5,819 6,505 ----------------- ------------------ Cash and Equivalents at End of Period ..................................... $ 6,045 $ 15,761 ================= ==================
See Notes to Condensed, Consolidated Financial Statements. 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") issued, then subsequently amended, Statement of Financial Accounting Standards ("SFAS") No. 133, Accounting for Derivative Instruments and Hedging Activities, which became effective for the Corporation on January 1, 2001. Under SFAS No. 133, as amended, all derivative instruments (including certain derivative instruments embedded in other contracts) are recognized in the balance sheet at their fair values and changes in fair value are recognized immediately in earnings, unless the derivatives qualify as hedges of future cash flows. For derivatives qualifying as hedges of future cash flows, the effective portion of changes in fair value is recorded temporarily in equity, then recognized in earnings along with the related effects of the hedged items. Any ineffective portion of a hedge is reported in earnings as it occurs. The nature of the Corporation's business activities necessarily involves the management of various financial and market risks, including those related to changes in interest rates, equity prices, currency exchange rates, and commodity prices. As discussed more fully in notes 1, 10 and 20 of the 2000 Form 10-K, the Corporation uses derivative financial instruments to mitigate or eliminate certain of those risks. The January 1, 2001 accounting change described above affected only the pattern and timing of non-cash accounting recognition. At January 1, 2001, the Corporation's financial statements were adjusted to record a cumulative effect of adopting this accounting change, as follows: (In millions) Earnings Equity ------- ------- Adjustment to fair value of derivatives(a) $ (60) $(1,315) Income tax effects ....................... 22 505 ------- ------- Total .................................... $ (38) $ (810) ======= ======= (a) For earnings effect, amount shown is net of adjustment to hedged item. A reconciliation of current period changes, net of applicable income taxes, in the separate component of share owners' equity labeled "derivatives qualifying as hedges" follows. (In millions) Transition adjustment as of January 1, 2001 $ (810) Current period declines in fair value - net (365) Reclassifications to earnings - net ....... (29) ------- Balance at March 31, 2001 ................. $(1,204) ======= Additional disclosures required by SFAS No. 133, as amended, are provided in the following paragraphs. Hedges of Future Cash Flows The ineffective portion of changes in fair values of hedge positions, reported in first quarter earnings, amounted to $(2) million, before income taxes, and is recorded in revenue from services. There were no amounts excluded from the measure of effectiveness in the first quarter related to the hedge of future cash flows. Of the $(810) million transition adjustment recorded in equity at January 1, 2001, $25 million, net of income taxes, was reclassified to earnings during the first quarter of 2001. The $(1,204) million recorded in equity at March 31, 2001 is expected to be reclassified to future earnings, contemporaneously with and primarily offsetting changes in interest expense on floating-rate instruments. Of this amount $(352) million, net of income taxes, would be reclassified to earnings over the 12 month period ending March 31, 2002. The actual amounts that will be reclassified to earnings over the next twelve months will vary from this amount as a result of changes in market conditions. No amounts were reclassified to earnings during the first quarter in connection with forecasted transactions that were no longer considered probable of occurring. At March 31, 2001, the term of derivative instruments hedging forecasted transactions, except those related to payment of variable interest on existing financial instruments, was zero. Hedges of Recognized Assets, Liabilities and Firm Commitments The ineffective portion of changes in fair values of hedge positions, reported in first quarter earnings, amounted to $3 million, before income taxes. Amounts excluded from the measure of effectiveness (related to time value on option contracts), also reported in first quarter earnings, amounted to $6 million, before income taxes. These amounts are reported in revenue from services. Hedges of Net Investments in Foreign Subsidiaries Of the $(466) million reported in the separate component of equity related to currency translation adjustments, $38 million, net of income taxes, was attributable to derivative instruments designated and effective as net investment hedges. In addition, amounts excluded from the measure of effectiveness on these net investment hedges of $42 million, before income taxes, are reflected in interest expense. Derivatives Not Designated as Hedges Derivatives not designated as hedges primarily consist of options and instruments containing option features that behave based on limits ("caps," "floors," or "collars"). These instruments are used to hedge risks associated with interest rate and equity movements in certain investments as well as risks in certain business activities, such as mortgage servicing. Although these instruments are effective as hedges from an economic perspective, they do not qualify for hedge accounting under SFAS No. 133, as amended. 4. In November 2000, the Emerging Issues Task Force of the FASB reached a consensus on impairment accounting for retained beneficial interests ("EITF 99-20"). Under this consensus, impairment on certain beneficial interests in securitized assets must be recognized when (1) the asset's fair value is below its carrying value, and (2) it is probable that there has been an adverse change in estimated cash flows. Previously, impairment on such assets was recognized when the asset's carrying value exceeded estimated cash flows discounted at a risk free rate of return. The effect of adopting EITF 99-20 at January 1, 2001, was a one-time reduction of net earnings of $120 million, net of income taxes of $64 million. This accounting change did not involve cash, and management expects that it will have no more than a modest effect on future results. 5. A summary of increases/(decreases) in share owners' equity that do not result directly from transactions with share owners, net of income taxes, is provided below.
Three Months Ended ------------------------------------ March 31, April 1, (In millions) 2001 2000 ----------------- ----------------- Net earnings .............................................................. $ 1,182 $ 1,207 Investing securities ...................................................... 742 (199) Currency translation adjustments .......................................... 134 (93) Derivatives qualifying as hedges .......................................... (394) - Cumulative effect on share owners' equity of adopting FAS 133 ............. (810) - ----------------- ----------------- Total ................................................................... $ 854 $ 915 ================= =================
6. Revenues and net earnings of the Corporation, by operating segment, for the three months ended March 31, 2001 and April 1, 2000 can be found in the table on page 7 of this report. Item 2. Management's Discussion and Analysis of Results of Operations Overview The Corporation's net earnings before cumulative effect of changes in accounting principle (discussed in notes 3 and 4 to the condensed, consolidated financial statements) for the first three months of 2001 were $1,340 million, a $133 million (11%) increase over the first three months of 2000. The results reflected the globalization and diversity of the Corporation's businesses, with strong double-digit increases in the Consumer Services and Equipment Management segments. Operating Results Total revenues decreased $1,227 million (9%) to $12,078 million for the first three months of 2001, compared with $13,305 million for the first three months of 2000. This decrease primarily resulted from the deconsolidation of Montgomery Wards, LLC ("Wards"), volume declines in the information technology products and services businesses, and reduced asset gains at GE Equity, offset by growth in origination volume in the Consumer Services, Specialty Insurance and Mid-Market Financing segments. Interest expense on borrowings for the first three months of 2001 was $2,744 million, 13% higher than for the first three months of 2000. The increase reflected higher interest rates and higher average borrowings used to finance asset growth. The average composite interest rate on the Corporation's borrowings for the first three months of 2001 was 5.87% compared with 5.52% in the first three months of 2000. Operating and administrative expenses were $3,414 million for the first three months of 2001, a 16% decrease over the first three months of 2000. The decrease primarily reflected productivity gains in the Consumer Services and Equipment Management segments and the deconsolidation of Wards. Cost of goods sold is associated with activities of the Corporation's computer equipment distribution business and former retail operations. This cost amounted to $961 million for the first three months of 2001, compared with $2,070 million for the first three months of 2000. The decrease primarily reflected the deconsolidation of Wards and volume declines at IT Solutions. Insurance losses and policyholder and annuity benefits increased $412 million to $1,940 million for the first three months of 2001, compared with the first three months of 2000. The increase primarily reflected the effects of growth in premium volume throughout the period and business acquisitions. Provision for losses on financing receivables was $460 million for the first three months of 2001 compared with $508 million for the first three months of 2000. This provision principally related to credit cards, personal loans and auto loans and 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 decreased to $787 million for the first three months of 2001 compared with $956 million for the first three months of 2000. The decrease was principally the result of the deconsolidation of Wards and improvement in asset write-downs. Provision for income taxes was $402 million for the first three months of 2001 (an effective tax rate of 23.1%), compared with $549 million for the first three months of 2000 (an effective tax rate of 31.3%). The lower effective tax rate primarily reflected increased low taxed earnings from international operations. Operating Segments Revenues and net earnings before cumulative effect of changes in accounting principle of the Corporation, by operating segment, for the three months ended March 31, 2001, and April 1, 2000, are summarized and discussed below.
Three Months Ended ------------------------------------- March 31, April 1, (In millions) 2001 2000 ----------------- ----------------- Revenues Consumer Services ............................... $ 5,749 $ 5,409 Equipment Management............................. 3,083 3,718 Mid-Market Financing ............................ 1,435 1,256 Specialized Financing ........................... 1,308 1,681 Specialty Insurance ............................. 447 411 All other ....................................... 56 830 ----------------- ----------------- Total revenues ................................ $ 12,078 $ 13,305 ================= ================= Net Earnings before accounting changes Consumer Services ............................... $ 558 $ 275 Equipment Management ............................ 260 151 Mid-Market Financing ............................ 155 152 Specialized Financing ........................... 224 592 Specialty Insurance ............................. 120 119 All other ....................................... 23 (82) ----------------- ----------------- Total net earnings ............................ $ 1,340 $ 1,207 ================= =================
Consumer Services revenues increased 6% and net earnings increased 103% for the first three months of 2001 compared with the first three months of 2000. The increase in revenues was led by a combination of acquisition and volume growth in the consumer savings and insurance business and volume growth in the U.S. consumer credit card business. The increase in net earnings was led by volume growth in the U.S. consumer credit card and non-U.S. consumer finance businesses, reduced residual losses in the U.S. auto finance business, volume and acquisition growth in the consumer savings and insurance business and the divestiture of the Mortgage Services business. Equipment Management revenues decreased 17% for the first three months of 2001, compared with the corresponding period in 2000, primarily as a result of volume declines in the information technology products and services businesses, partially offset by revenues associated with a contract cancellation fee and volume growth in the satellite service business (see discussion of proposed divestiture that follows), and volume growth in the aviation services business. Net earnings increased 72% for the first three months of 2001, compared with the corresponding period in 2000, primarily attributable to a contract cancellation fee and volume growth at the satellite service business, asset gains and volume growth in the aviation services business, and improved performance in the information technology products and services businesses. Mid-Market Financing revenues grew 14% in the first three months of 2001, compared with the corresponding period in 2000, principally reflecting the combination of origination growth and asset gains. Net earnings increased 2% in the first three months of 2001, compared with the corresponding period in 2000, primarily from increased asset growth from originations, partially offset by reduced asset gains. Specialized Financing revenues decreased 22%, while net earnings decreased 62%, in the first three months of 2001 compared with the first three months of 2000. The decrease in revenues and net earnings principally reflects the impact of reduced asset gains on equity investments at GE Equity, partially offset by the combination of asset gains and origination growth at Commercial Real Estate, Commercial Finance and the Structured Finance Group. Specialty Insurance revenues grew 9% in the first three months of 2001, compared with the corresponding period in 2000, primarily as a result of increased premium income. Net earnings increased 1% in the first three months of 2001, compared with the corresponding period in 2000, primarily reflecting the effects of increased investment income, including capital gains. All Other decline in revenues and increase in net earnings were primarily the result of the deconsolidation of Wards. 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, decreased to $141.6 billion at March 31, 2001, from $144.5 billion at the end of 2000, primarily reflecting the effects of securitization and foreign currency translation on Japanese and European financing receivables, partially offset by acquisition growth and higher origination volume. The related allowance for losses at March 31, 2001 amounted to $3.9 billion ($4.0 billion at the end of 2000) and represents management's best estimate of probable losses inherent in 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. Consumer financing receivables, primarily credit card and personal loans and auto loans and leases, were $42.8 billion at March 31, 2001, a decrease of $4.0 billion from year-end 2000. Nonearning consumer receivables at March 31, 2001 were $1.2 billion, about 2.8% of outstandings, compared with $1.0 billion, about 2.3% of outstandings at December 31, 2000. The increase is primarily driven by seasoning of newer portfolios and increases in delinquencies in the liquidating Wards credit card portfolio consistent with Management's expectations. Write-offs of consumer receivables remained at $0.4 billion for the first three months of 2001 compared with $0.4 billion for the first three months of 2000. Other financing receivables, which totaled $98.8 billion at March 31, 2001 ($97.7 billion at December 31, 2000), consisted of a diverse commercial, industrial and equipment loan and lease portfolio. Related nonearning and reduced-earning receivables were $1.2 billion, about 1.3% of outstandings at March 31, 2001, compared with $0.9 billion, about 1.0% of outstandings at year-end 2000. The increase is primarily driven by several large bankruptcies and restructurings. Changes in Accounting Principle On January 1, 2001, the Corporation adopted Statement of Financial Accounting Standards ("SFAS") No. 133, Accounting for Derivative Instruments and Hedging Activities, and Emerging Issues Task Force consensus 99-20 on impairment accounting for retained beneficial interests. See further discussion of these changes in Notes 3 and 4 to the condensed, consolidated financial statements. Upon adoption of SFAS 133, the Corporation reclassified investment securities of $192 million from available-for-sale to trading, resulting in a reclassification of unrealized gains of $77 million from accumulated gains on investment securities to earnings. Proposed Divestiture On March 28, 2001, the Corporation announced that it will sell the stock of GE American Communications Inc. ("Americom") and other assets and liabilities in exchange for a combination of cash and stock. As of March 28, 2001, the deal had a value of approximately $5 billion, which would result in an after-tax gain of approximately $1 billion. It is expected that the satellite services operations of both Americom and SES ASTRA ("the buyer") will be combined in a newly formed holding company in which GECC will hold an economic interest of approximately 25%, providing GECC with significant influence over the investee. This transaction is expected to close before year-end 2001, and is conditioned upon acceptance by the buyer's shareholders and certain regulatory approvals. Forward Looking Statements This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in global economic, business, competitive market and regulatory factors.
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 31, 2001 (Unaudited) Ratio of Earnings to Combined Fixed Charges and Ratio of Preferred Stock Earnings to Dividends (Dollar Amounts In millions) Fixed Charges ----------------- ----------------- Net earnings ................................................................ $ 1,182 $ 1,182 Provision for income taxes .................................................. 402 402 Minority interest in net earnings of consolidated affiliates ................ 30 30 ----------------- ----------------- Earnings before provision for income taxes and minority interest ............ 1,614 1,614 ----------------- ----------------- Fixed charges: Interest ................................................................. 2,793 2,793 One-third of rentals ..................................................... 75 75 ----------------- ----------------- Total fixed charges ......................................................... 2,868 2,868 Less interest capitalized, net of amortization .............................. (29) (29) ----------------- ----------------- Earnings before provision for income taxes and minority interest, plus fixed charges .................................................................. $ 4,453 $ 4,453 ================= ================= Ratio of earnings to fixed charges .......................................... 1.55 ================= Preferred stock dividend requirements ....................................... - Ratio of earnings before provision for income taxes to net earnings ......... 1.34 ----------------- Preferred stock dividend factor on pre-tax basis ............................ 38 Fixed charges ............................................................... 2,868 ----------------- Total fixed charges and preferred stock dividend requirements ............... $ 2,906 ================= 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. 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. b. Reports on Form 8-K. None. 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: April 18, 2001 By: /s/ J.A. Parke -------------------------------------------------------------- J.A. Parke, Vice Chairman and Chief Financial Officer (Principal Financial Officer) Date: April 18, 2001 By: /s/ J.C. Amble -------------------------------------------------------------- J.C. Amble, Vice President and Controller (Principal Accounting Officer)