EX-99.C 6 gecc99c.htm Exhibit 99

Exhibit 99(c) 

Unaudited Operating Segment Results for 2003 and 2002 by Quarter Conformed to Reflect the January 1, 2004, Organizational Changes

GENERAL ELECTRIC CAPITAL CORPORATION

Segment Operations

      Revenues and earnings before accounting changes, by operating segment, of General Electric Capital Services, Inc. (GECS), the sole owner of the common stock of GE Capital (GECC), are summarized and discussed below with a reconciliation to the GECC-only results, for the four quarters and total year of 2003 and 2002. The most significant component of these reconciliations is the exclusion from the Insurance segment at the GECC level of the results of GE Global Insurance Holdings (principally Employers Reinsurance Corporation - ERC), which is not a subsidiary of GECC but is a direct subsidiary of GECS. For purposes of the discussion, earnings before accounting changes is referred to as net earnings.

      As discussed in our 2003 Annual Report on Form 10-K, effective January 1, 2004, we made changes to the way we report our segments. All quarters presented below have been reclassified to conform to this reorganization.

CONSOLIDATED

2003

(In millions)

 

First Quarter

 

 

Second Quarter

 

 

Third Quarter

 

 

Fourth Quarter

 

 

Total Year

REVENUES

  

 

 

 

 

 

 

 

 

Commercial Finance

$

4,776

 

$

5,180

 

$

5,205

 

$

5,652

 

$

20,813

Consumer Finance

 

2,759

 

 

3,046

 

 

3,499

 

 

3,541

 

 

12,845

Equipment & Other Services

 

964

 

 

869

 

 

1,479

 

 

1,115

 

 

4,427

Insurance

 

6,368

 

 

6,792

 

 

6,824

 

 

6,210

 

 

26,194

Total revenues

14,867

 

15,887

 

17,007

 

16,518

 

64,279

Less portion of revenues not included in GECC

(2,706

)

(3,057

)

(2,926

)

(2,674

)

(11,363

)

Total revenues as reported in GECC

$

12,161

$

12,830

$

14,081

$

13,844

$

52,916

NET EARNINGS

Commercial Finance

$

870

 

$

832

 

$

1,060

 

$

1,148

 

$

3,910

Consumer Finance

 

546

 

 

514

 

 

595

 

 

506

 

 

2,161

Equipment & Other Services

 

(258

)

 

(252

)

 

(52

)

 

143

 

 

(419

)

Insurance

 

512

 

 

508

 

 

604

 

 

478

 

2,102

Total earnings before accounting changes

 

1,670

 

1,602

 

 

2,207

 

 

2,275

 

 

7,754

Less portion of earnings not included in GECC

(52

)

2

(206

)

(266

)

(522

)

Total earnings in GECC before accounting changes

1,618

1,604

2,001

2,009

7,232

Cumulative effect of accounting changes

 

-

 

-

 

(339

)

 

-

 

(339

)

Total net earnings as reported in GECC

$

1,618

 

$

1,604

 

$

1,662

 

$

2,009

 

$

6,893

(1)

Table of Contents

 

COMMERCIAL FINANCE

2003

(In millions)

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Total Year

REVENUES

$

4,776

$

5,180

 

$

5,205

$

5,652

$

20,813

Less portion of revenues not included in GECC

(68

)

(74

)

(93

)

(81

)

(316

)

Total revenues in GECC

$

4,708

$

5,106

$

5,112

$

5,571

$

20,497

NET REVENUES

Total revenues

$

4,708

$

5,106

$

5,112

$

5,571

$

20,497

Interest expense

1,469

1,456

1,394

1,461

5,780

Total net revenues

$

3,239

$

3,650

$

3,718

$

4,110

$

14,717

NET EARNINGS

$

870

$

832

$

1,060

 

$

1,148

 

$

3,910

Less portion of net earnings not included in GECC

(17

)

(15

)

(43

)

(29

)

(104

)

Total net earnings in GECC

$

853

$

817

$

1,017

$

1,119

$

3,806

TOTAL ASSETS

$

204,481

$

207,175

$

201,874

 

$

214,016

 

$

214,016

Less portion of assets not included in GECC

(876

)

(568

)

132

686

686

Total assets in GECC

$

203,605

$

206,607

$

202,006

$

214,702

$

214,702

 

 

 

REAL ESTATE

Revenues in GECS

$

603

$

599

$

710

$

474

$

2,386

Net earnings in GECS

$

266

$

198

$

255

$

115

 

$

834

AVIATION SERVICES

Revenues in GECS

$

714

$

710

$

711

$

746

$

2,881

Net earnings in GECS

$

135

$

126

$

97

$

148

$

506

REAL ESTATE

Assets in GECS

$

29,578

$

29,157

$

27,336

$

27,767

$

27,767

AVIATION SERVICES

Assets in GECS

$

30,264

$

32,305

$

32,399

$

33,271

$

33,271

(2)

Table of Contents

 

CONSUMER FINANCE

 

2003
 

  (In millions)

 

First Quarter

 

 

Second Quarter

 

 

Third Quarter

 

 

Fourth Quarter

 

 

Total Year

  
 

 

 

 

 

 
                               

REVENUES

$

2,759

 

$

3,046

 

$

3,499

 

$

3,541

 

$

12,845

  

Less portion of revenues not included in GECC

  

22

    

59

    

(127

)

  

(65

)

  

(111

)
 

 

 

 

 

 

Total revenues in GECC

$

2,781

  

$

3,105

  

$

3,372

  

$

3,476

  

$

12,734

  
 

 

 

 

 

 
                               

NET REVENUES

                            

 

Total revenues

$

2,781

  

$

3,105

  

$

3,372

  

$

3,476

  

$

12,734

  

Interest expense

  

573

    

669

    

683

    

758

    

2,683

  
 

 

 

 

 

 

Total net revenues

$

2,208

  

$

2,436

  

$

2,689

  

$

2,718

  

$

10,051

  
 

 

 

 

 

 
                               

NET EARNINGS

$

546

 

$

514

 

$

595

 

$

506

 

$

2,161

  

Less portion of net earnings not included in GECC

  

42

    

76

    

(64

)

  

(4

)

  

50

  
 

 

 

 

 

 

Total net earnings in GECC

$

588

  

$

590

  

$

531

  

$

502

  

$

2,211

  
 

 

 

 

 

 
                               

 

                              

TOTAL ASSETS

$

77,856

 

$

97,117

 

$

96,637

 

$

106,530

 

$

106,530

  

Less portion of assets not included in GECC

  

(1,152

)

  

(1,006

)

  

(845

)

  

(595

)

  

(595

)
 

 

 

 

 

 

Total assets in GECC

$

76,704

  

$

96,111

  

$

95,792

  

$

105,935

  

$

105,935

  
 

 

 

 

 

 
                     

(3)

Table of Contents

 

EQUIPMENT & OTHER SERVICES

 

2003

  
 

 

 (In millions)

  

First Quarter

    

Second Quarter

    

Third Quarter

    

Fourth Quarter

    

Total Year

  
 

 

 

 

 

 

REVENUES

$

964

 

$

869

 

$

1,479

 

$

1,115

  

$

4,427

  

Less portion of revenues not included in GECC

  

21

    

(2

)

  

172

    

404

    

595

  

Total revenues in GECC

$

985

  

$

867

  

$

1,651

  

$

1,519

  

$

5,022

  

 

 

 

 

 

 

NET EARNINGS

$

(258

)

$

(252

)

$

(52

)

$

143

  

$

(419

)

Less portion of net earnings not included in GECC

  

36

    

45

    

37

    

(77

)

  

41

  

Total net earnings in GECC

$

(222

)

$

(207

)

$

(15

)

$

66

  

$

(378

)
 

 

 

 

 

 

 

INSURANCE

   

2003

  
 

 

(In millions)

  

First Quarter

    

Second Quarter

    

Third Quarter

 

 

Fourth Quarter

    

Total Year

  
 

 

 

 

 

 

REVENUES

$

6,368

 

$

6,792

 

$

6,824

 

$

6,210

  

$

26,194

  

Less portion of revenues not included in GECC

  

(2,681

)

  

(3,040

)

  

(2,878

)

  

(2,932

)

  

(11,531

)

Total revenues in GECC

$

3,687

  

$

3,752

  

$

3,946

  

$

3,278

  

$

14,663

  

 

 

 

 

 

 

NET EARNINGS

$

512

 

$

508

 

$

604

 

$

478

  

$

2,102

  

Less portion of net earnings not included in GECC

  

(113

)

  

(104

)

  

(136

)

  

(156

)

  

(509

)

Total net earnings in GECC

$

399

  

$

404

  

$

468

  

$

322

  

$

1,593

  

 

 

 

 

 

 

GE GLOBAL INSURANCE HOLDING (ERC)

                              

Revenues in GECS

$

2,693

  

$

3,065

 

$

2,886

 

$

2,956

  

$

11,600

  
 

 

 

 

 

 

Net earnings GECS

$

121

  

$

119

  

$

120

  

$

121

  

$

481

  
 

 

 

 

 

 

 

(4)

Table of Contents

 

CONSOLIDATED

2002

(In millions)

First Quarter

 

 

Second Quarter

 

 

Third Quarter

 

 

Fourth Quarter

 

 

Total Year

REVENUES

  

 

 

 

 

 

 

 

 

Commercial Finance

$

4,463

 

$

4,854

 

$

4,968

 

$

5,307

 

$

19,592

Consumer Finance

 

2,372

 

 

2,463

 

 

2,701

 

 

2,730

 

 

10,266

Equipment & Other Services

 

1,421

 

 

1,390

 

 

1,249

 

 

1,485

 

 

5,545

Insurance

 

5,768

 

 

5,263

 

 

6,197

 

 

6,068

 

 

23,296

Total revenues

14,024

 

13,970

 

15,115

 

15,590

 

58,699

 

Less portion of revenues not included in GECC

(2,494

)

(2,177

)

(2,614

)

(2,595

)

(9,880

)

Total revenues as reported in GECC

$

11,530

$

11,793

$

12,501

$

12,995

$

48,819

 

NET EARNINGS

 

 

 

 

 

 

 

 

 

Commercial Finance

$

750

 

$

761

 

$

897

 

$

902

 

$

3,310

Consumer Finance

 

498

 

 

466

 

 

467

 

 

368

 

 

1,799

Equipment & Other Services

 

(107

)

 

5

 

(140

 )

 

(146

) 

 

(388

)

Insurance

 

516

 

 

95

 

 

327

 

 

(1,033

)

 

(95

)

Total earnings before accounting changes

 

1,657

 

1,327

 

 

1,551

 

 

91

 

 

4,626

 

Less portion of earnings not included in GECC

(52

)

245

207

1,479

1,879

Total earnings in GECC before accounting changes

1,605

1,572

1,758

1,570

6,505

Cumulative effect of accounting changes

 

(1,015

)

 

-

 

 

-

 

 

-

 

 

(1,015

)

Total net earnings as reported in GECC

$

590

$

1,572

$

1,758

$

1,570

$

5,490

 

(5)

Table of Contents

 

COMMERCIAL FINANCE

2002

(In millions)

First Quarter

 

 

Second Quarter

 

 

Third Quarter

 

 

Fourth Quarter

 

 

Total Year

REVENUES

$

4,463

 

$

4,854

 

$

4,968

 

$

5,307

 

$

19,592

Less portion of revenues not included in GECC

(59

)

(73

)

(25

)

(133

)

(290

)

Total revenues in GECC

$

4,404

$

4,781

$

4,943

$

5,174

$

19,302

NET REVENUES

Total revenues

$

4,404

$

4,781

$

4,943

$

5,174

$

19,302

Interest expense

1,383

1,486

1,540

1,556

5,965

Total net revenues

$

3,021

$

3,295

$

3,403

$

3,618

$

13,337

NET EARNINGS

$

750

 

$

761

 

$

897

 

$

902

 

$

3,310

Less portion of net earnings not included in GECC

(14

)

(19

)

14

(28

)

(47

)

Total net earnings in GECC

$

736

$

742

$

911

$

874

$

3,263

TOTAL ASSETS

$

180,389

 

$

191,542

 

$

191,369

 

$

202,462

 

$

202,462

Less portion of assets not included in GECC

(484

)

(531

)

(641

)

(918

)

(918

)

Total assets in GECC

$

179,905

$

191,011

$

190,728

$

201,544

$

201,544

 

REAL ESTATE

Revenues in GECS

$

448

 

$ 

545

 

$ 

543

 

$ 

588

 

$

2,124

Net earnings in GECS

$

168

 

$

140

 

$ 

187

 

$ 

155

 

$

650

AVIATION SERVICES

Revenues in GECS

$

568

$

683

$

741

$

702

$

2,694

Net earnings in GECS

$

98

$

121

$

133

$

102

$

454

REAL ESTATE

Assets in GECS

$

24,334

$

30,144

$

29,273

$

29,522

$

29,522

AVIATION SERVICES

Assets in GECS

$

26,797

$

27,968

$

28,741

$

30,512

$

30,512

 

(6)

Table of Contents

 

CONSUMER FINANCE

   

2002
 

(In millions)

First Quarter

 

Second Quarter

 

 Third Quarter

 

 Fourth Quarter

 

 Total Year

  
 

 

 

 

 

 
                               

REVENUES

$

2,372

 

$

2,463

 

$

2,701

 

$

2,730

 

$

10,266

  

Less portion of revenues not included in GECC

  

(104

)

  

(119

)

  

(53

)

  

(157

)

  

(433

)
 

 

 

 

 

 

Total revenues in GECC

$

2,268

  

$

2,344

  

$

2,648

  

$

2,573

  

$

9,833

  
 

 

 

 

 

 

NET REVENUES

                              

Total revenues

$

2,268

 

$

2,344

 

$

2,648

 

$

2,573

 

$

9,833

  

Interest expense

  

477

    

481

    

569

    

578

    

2,105

  
 

 

 

 

 

 

Total net revenues

$

1,791

  

$

1,863

  

$

2,079

  

$

1,995

  

$

7,728

  
 

 

 

 

 

 

NET EARNINGS

$

498

 

$

466

 

$

467

 

$

368

 

$

1,799

  

Less portion of net earnings not included in GECC

  

(17

)

  

(39

)

  

(6

)

  

(55

)

  

(117

)
 

 

 

 

 

 

Total net earnings in GECC

$

481

  

$

427

  

$

461

  

$

313

  

$

1,682

  
 

 

 

 

 

 

 

                              

TOTAL ASSETS

$

62,441

 

$

69,039

 

$

72,727

 

$

76,965

 

$

76,965

  

Less portion of assets not included in GECC

  

(912

)

  

(343

)

  

(333

)

  

(1,080

)

  

(1,080

)
 

 

 

 

 

 

Total assets in GECC

$

61,529

  

$

68,696

  

$

72,394

  

$

75,885

  

$

75,885

  
 

 

 

 

 

 

 

EQUIPMENT & OTHER SERVICES

   

2002

  
 

 

 (In millions)

First Quarter

 

 Second Quarter

 

 

Third Quarter

 

 

Fourth Quarter

 

 

Total Year

  
 

 

 

 

 

 

REVENUES

$

1,421

 

$

1,390

 

$

1,249

 

$

1,485

 

$

5,545

  

Less portion of revenues not included in GECC

  

19

    

37

    

18

    

44

    

118

  
 

 

 

 

 

 

Total revenues in GECC

$

1,440

  

$

1,427

  

$

1,267

  

$

1,529

  

$

5,663

  
 

 

 

 

 

 

NET EARNINGS

$

(107

 )

$

5

  

$

(140

)

$

(146

) 

$

(388

)

Less portion of net earnings not included in GECC

  

58

    

70

    

67

    

66

    

261

  
 

 

 

 

 

 

Total net earnings in GECC

$

(49

)

$

75

  

$

(73

)

$

(80

)

$

(127

)
 

 

 

 

 

 
                               

(7)

Table of Contents

 

INSURANCE

   

2002

  
 

 

(In millions)

 

First Quarter

 

 

Second Quarter

 

 

Third Quarter

 

 

Fourth Quarter

 

 

Total Year

  
 

 

 

 

 

 
                               

REVENUES

$

5,768

 

$

5,263

 

$

6,197

 

$

6,068

 

$

23,296

  

Less portion of revenues not included in GECC

  

(2,350

)

  

(2,022

)

  

(2,554

)

  

(2,349

)

  

(9,275

)
 

 

 

 

 

 

Total revenues in GECC

$

3,418

  

$

3,241

  

$

3,643

  

$

3,719

  

$

14,021

  

 

 

  

 

 

 

 

NET EARNINGS

$

516

 

$

95

 

$

327

 

$

(1,033

)

$

(95

)

Less portion of net earnings not included in GECC

  

(79

)

  

233

    

132

    

1,496

    

1,782

  
 

 

 

 

 

 

Total net earnings in GECC

$

437

  

$

328

  

$

459

  

$

463

  

$

1,687

  
 

 

 

 

 

 

GE GLOBAL INSURANCE HOLDING (ERC)

                              

Revenues in GECS

$

2,407

 

$

2,076

 

$

2,585

 

$

2,364

 

$

9,432

  
 

 

 

 

 

 

Net earnings in GECS

$

87

 

$

(229

)

$

(143

)

$

(1,509

)

$

(1,794

)
 

 

 

 

 

 

 

(8)