EX-99.B 4 geccexhibit99bform8ksept05.htm GECC EXHIBIT 99B FORM 8K SEPT 2005 GECC Exhibit 99b Form 8K Sept 2005

Exhibit 99(b)
 

 

 
Revised Segment Results, with Annual Results for the Three Years Ended December 31, 2004, and Quarterly Results for the Six Quarters Ended June 30, 2005 (Pages 1-10)
 

 
 

 
Exhibit 99(b)
 
Revised Segment Results, with Annual Results for the Three Years Ended December 31, 2004, and Quarterly Results for the Six Quarters Ended June 30, 2005 (Pages 1-10)
 
GENERAL ELECTRIC CAPITAL CORPORATION
 
Segment Operations
 
Revenues and segment profit for operating segments are shown below. As described in our Form 8-K filed June 23, 2005, the General Electric Company (GE) reorganized its businesses on July 5, 2005, around markets and customers. We believe this organization will help us accelerate growth, improve productivity and retain, as well as grow, the best management talent.
 
GE’s six reporting segments as of July 5, 2005, were as follows:
 
•
Commercial Financial Services - the combination of our previous Commercial Finance (excluding Aviation Services, Energy Financial Services and Transportation Finance) and Insurance segments and GE Equity, previously reported in the Equipment & Other Services segment
 
•
Consumer Finance - unchanged
 
•
Healthcare - unchanged
 
•
Industrial - the combination of our previous Consumer & Industrial and Advanced Materials segments, the security, sensing and Fanuc Automation businesses of our previous Infrastructure segment, the inspection technology business of our previous Transportation segment and Equipment Services, previously reported in the Equipment & Other Services segment
 
•
Infrastructure - the combination of our previous Energy and Transportation segments, the water business of our previous Infrastructure segment, and Aviation Services, Energy Financial Services and Transportation Finance of our previous Commercial Finance segment
 
•
NBC Universal - unchanged
 
GECC corporate items and eliminations includes the effects of eliminating transactions between operating segments for the registrant; liquidating businesses such as consolidated, liquidating securitization entities; under absorbed corporate overhead; the activities of functional departments such as tax and treasury; certain non-allocated amounts determined by the Chief Executive Officer; and a variety of sundry items. GECC corporate items and eliminations is not an operating segment, rather it is added to operating segment totals to reconcile to the consolidated totals of the financial statements.
 
The Chief Executive Officer allocates resources to, and assesses the performance of operations at the consolidated GE-level. GECC operations are a portion of those segments. We present in their entirety the four GE segments that include financial services operations. We also provide a one-line reconciliation to GECC-only results, the most significant components of which are the elimination of GE businesses that are not financial services businesses and the elimination of certain insurance operations that are not subsidiaries of GECC. In addition to providing GE segments in their entirety, we have also provided supplemental information for certain segments. Our
 
(1)
 
Chief Executive Officer does not separately assess the performance of, or allocate resources among, these product lines.
 
Segment profit is determined based on internal performance measures used by the Chief Executive Officer to assess the performance of each business in a given period. In connection with that assessment, the Chief Executive Officer may exclude matters such as charges for restructuring; rationalization and other similar expenses; in-process research and development and certain other acquisition-related charges; certain gains and losses from dispositions; and litigation settlements or other charges, responsibility for which precedes the current management team.
 
Segment profit always excludes the effects of principal pension plans and accounting changes. Segment profit excludes or includes interest and other financial charges and income taxes according to how a particular segment’s management is measured - excluded in determining segment profit, which we refer to as “operating profit,” for GE Healthcare, GE NBC Universal and the industrial businesses of the GE Industrial and GE Infrastructure segments; included in determining segment profit, which we refer to as “net earnings,” for GE Commercial Financial Services, GE Consumer Finance, and the financial services businesses of the GE Industrial and GE Infrastructure segments.
 
All periods presented have been reclassified to conform to the changes in our organization effective July 5, 2005.
 
Consolidated
 
For the years ended December 31 (In millions)
2004
  
2003
  
2002
  
 
 
  
 
  
 
  
Revenues
                  
GE Commercial Financial Services
$
42,594
  
$
43,121
  
$
38,984
  
GE Consumer Finance
  
15,734
    
12,845
    
10,266
  
GE Industrial
  
30,722
    
24,988
    
26,154
  
GE Infrastructure
  
37,373
    
36,569
    
40,119
  
GECC corporate items and eliminations
  
2,762
    
2,152
    
855
  
Total revenues
  
129,185
    
119,675
    
116,378
  
Less portion of GE revenues not included in GECC
  
(69,335
)
  
(66,305
)
  
(67,543
)
Total revenues in GECC
$
59,850
  
$
53,370
  
$
48,835
  
                   
                   
Segment profit
                  
GE Commercial Financial Services
$
4,139
  
$
5,009
  
$
2,075
  
GE Consumer Finance
  
2,520
    
2,161
    
1,799
  
GE Industrial
  
1,833
    
1,385
    
1,837
  
GE Infrastructure
  
6,797
    
7,362
    
9,178
  
Total segment profit
 
15,289
    
15,917
    
14,889
  
GECC corporate items and eliminations
  
812
    
75
    
174
  
Less portion of GE profit not included in GECC
  
(7,841
)
  
(8,526
)
  
(8,509
)
Total earnings in GECC before accounting changes
  
8,260
    
7,466
    
6,554
  
Cumulative effect of accounting changes
  
-
    
(339
)
  
(1,015
)
Total net earnings in GECC
$
8,260
  
$
7,127
  
$
5,539
  
 
(2)
 
Consolidated
 
 
2005
  
(In millions)
First
quarter
  
Second
quarter
  
Six
months
  
                   
Revenues
                  
GE Commercial Financial Services
$
11,405
  
$
10,936
  
$
22,341
  
GE Consumer Finance
  
4,689
    
4,928
    
9,617
  
GE Industrial
  
7,668
    
8,253
    
15,921
  
GE Infrastructure
  
9,374
    
10,221
    
19,595
  
GECC corporate items and eliminations
  
376
    
350
    
726
  
Total revenues
  
33,512
    
34,688
    
68,200
  
Less portion of GE revenues not included in GECC
  
(17,345
)
  
(18,518
)
  
(35,863
)
Total revenues in GECC
$
16,167
  
$
16,170
  
$
32,337
  
                   
Segment profit
                  
GE Commercial Financial Services
$
1,309
  
$
1,156
  
$
2,465
  
GE Consumer Finance
  
735
    
735
    
1,470
  
GE Industrial
  
526
    
635
    
1,161
  
GE Infrastructure
  
1,540
    
1,916
    
3,456
  
Total segment profit
 
4,110
    
4,442
    
8,552
  
GECC corporate items and eliminations
  
(23
)
  
64
    
41
  
Less portion of GE profit not included in GECC
  
(2,010
)
  
(2,380
)
  
(4,390
)
Total net earnings in GECC
$
2,077
  
$
2,126
  
$
4,203
  
 
(3)
 
GE Commercial Financial Services
 
2005
  
(In millions)
First
quarter
  
Second
quarter
  
Six
months
  
                   
Revenues
$
11,405
  
$
10,936
  
$
22,341
  
Less portion of GE Commercial Financial Services
                 
not included in GECC
  
(2,963
)
  
(2,949
)
  
(5,912
)
Total revenues in GECC
$
8,442
  
$
7,987
  
$
16,429
  
                   
Net revenues
                  
Total revenues
$
8,442
  
$
7,987
  
$
16,429
  
Interest expense
  
1,465
    
1,543
    
3,008
  
Total net revenues
$
6,977
  
$
6,444
  
$
13,421
  
                   
Segment profit
$
1,309
  
$
1,156
  
$
2,465
  
Less portion of GE Commercial Financial Services
                 
not included in GECC
  
(220
)
  
(246
)
  
(466
)
Total segment profit in GECC
$
1,089
  
$
910
  
$
1,999
  
                   
             
Quarters ended (In millions)
First
quarter
  
Second
quarter
      
                   
Total assets
$
365,559
  
$
360,771
        
Less portion of GE Commercial Financial Services
                 
not included in GECC
  
(52,451
)
  
(51,276
)
      
Total assets in GECC
$
313,108
  
$
309,495
        
                   
             
(In millions)
First
quarter
  
Second
quarter
  
Six
months
  
                   
Revenues in GE
                  
Capital Solutions
$
2,889
  
$
2,856
  
$
5,745
  
Insurance
 
6,333
    
6,007
    
12,340
  
Real Estate
 
898
    
744
    
1,642
  
                   
Segment profit in GE
                  
Capital Solutions
$
286
  
$
325
  
$
611
  
Insurance
 
383
    
284
    
667
  
Real Estate
 
310
    
240
    
550
  
                   
             
Quarters ended (In millions)
First
quarter
  
Second
quarter
      
                   
Total assets in GE
                  
Capital Solutions
$
86,230
  
$
85,069
        
Insurance
 
177,933
    
175,107
        
Real Estate
 
36,299
    
35,619
        
 
(4)
 
GE Consumer Finance
 
2005
  
(In millions)
First
quarter
  
Second
quarter
  
Six
months
  
                   
Revenues
$
4,689
  
$
4,928
  
$
9,617
  
Less portion of GE Consumer Finance not included in GECC
  
-
    
-
    
-
  
Total revenues in GECC
$
4,689
  
$
4,928
  
$
9,617
  
                   
Net revenues
                  
Total revenues
$
4,689
  
$
4,928
  
$
9,617
  
Interest expense
  
1,278
    
1,409
    
2,687
  
Total net revenues
$
3,411
  
$
3,519
  
$
6,930
  
                   
Segment profit
$
735
  
$
735
  
$
1,470
  
Less portion of GE Consumer Finance not included in GECC
  
(4
)
  
(2
)
  
(6
)
Total segment profit in GECC
$
731
  
$
733
  
$
1,464
  
                   
Quarters ended (In millions)
First
quarter
  
Second
quarter
      
                   
Total assets
$
149,912
  
$
149,568
        
Less portion of GE Consumer Finance not included in GECC
  
(768
)
  
4
        
Total assets in GECC
$
149,144
  
$
149,572
        
 
GE Industrial
 
2005
  
(In millions)
First
quarter
  
Second
quarter
  
Six
months
  
                   
Revenues
$
7,668
  
$
8,253
  
$
15,921
  
Less portion of GE Industrial not included in GECC
  
(6,094
)
  
(6,601
)
  
(12,695
)
Total revenues in GECC
$
1,574
  
$
1,652
  
$
3,226
  
                   
Segment profit
$
526
  
$
635
  
$
1,161
  
Less portion of GE Industrial not included in GECC
  
(516
)
  
(599
)
  
(1,115
)
Total segment profit in GECC
$
10
  
$
36
  
$
46
  
                   
Revenues in GE
                  
Consumer & Industrial
$
3,261
  
$
3,576
  
$
6,837
  
Equipment Services
 
1,574
    
1,652
    
3,226
  
Plastics
 
1,648
    
1,640
    
3,288
  
                   
Segment profit in GE
                  
Consumer & Industrial
$
165
  
$
227
  
$
392
  
Equipment Services
 
10
    
36
    
46
  
Plastics
 
240
    
208
    
448
  
 
(5)
 
GE Infrastructure
 
 
2005
  
(In millions)
First
quarter
  
Second
quarter
  
Six
months
  
                   
Revenues
$
9,374
  
$
10,221
  
$
19,595
  
Less portion of GE Infrastructure not included in GECC
  
(8,288
)
  
(8,968
)
  
(17,256
)
Total revenues in GECC
$
1,086
  
$
1,253
  
$
2,339
  
                   
Segment profit
$
1,540
  
$
1,916
  
$
3,456
  
Less portion of GE Infrastructure not included in GECC
  
(1,270
)
  
(1,533
)
  
(2,803
)
Total segment profit in GECC
$
270
  
$
383
  
$
653
  
                   
Revenues in GE
                  
Aircraft Engines
$
2,590
  
$
2,971
  
$
5,561
  
Aviation Services
 
817
    
819
    
1,636
  
Energy
 
3,951
    
3,884
    
7,835
  
Energy Financial Services
  
228
    
382
    
610
  
Oil & Gas
 
641
    
763
    
1,404
  
Rail
 
756
    
892
    
1,648
  
                   
Segment profit in GE
                  
Aircraft Engines
$
527
  
$
690
  
$
1,217
  
Aviation Services
 
163
    
185
    
348
  
Energy
 
577
    
625
    
1,202
  
Energy Financial Services
  
94
    
179
    
273
  
Oil & Gas
 
27
    
75
    
102
  
Rail
 
82
    
101
    
183
  
 
(6)
 
Consolidated
 
 
2004
  
(In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
  
Total
year
  
                               
Revenues
                              
GE Commercial Financial Services
$
10,392
  
$
10,319
  
$
10,496
  
$
11,387
  
$
42,594
  
GE Consumer Finance
  
3,589
    
3,830
    
4,011
    
4,304
    
15,734
  
GE Industrial
  
7,036
    
7,673
    
7,635
    
8,378
    
30,722
  
GE Infrastructure
  
8,314
    
9,108
    
9,074
    
10,877
    
37,373
  
GECC corporate items and eliminations
  
837
    
246
    
458
    
1,221
    
2,762
  
Total revenues
  
30,168
    
31,176
    
31,674
    
36,167
    
129,185
  
Less portion of GE revenues not included in GECC
  
(15,721
)
  
(17,294
)
  
(16,954
)
  
(19,366
)
  
(69,335
)
Total revenues in GECC
$
14,447
  
$
13,882
  
$
14,720
  
$
16,801
  
$
59,850
  
                               
Segment profit
                              
GE Commercial Financial Services
$
1,110
  
$
827
  
$
1,135
  
$
1,067
  
$
4,139
  
GE Consumer Finance
  
602
    
600
    
681
    
637
    
2,520
  
GE Industrial
  
368
    
450
    
402
    
613
    
1,833
  
GE Infrastructure
  
1,501
    
1,592
    
1,608
    
2,096
    
6,797
  
Total segment profit
 
3,581
    
3,469
    
3,826
    
4,413
    
15,289
  
GECC corporate items and eliminations
  
47
    
(109
)
  
190
    
684
    
812
  
Less portion of GE profit not included in GECC
  
(1,849
)
  
(1,957
)
  
(1,746
)
  
(2,289
)
  
(7,841
)
Total net earnings in GECC
$
1,779
  
$
1,403
  
$
2,270
  
$
2,808
  
$
8,260
  
 
(7)

GE Commercial Financial Services
 
2004
  
(In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
  
Total
year
  
                               
Revenues
$
10,392
  
$
10,319
  
$
10,496
  
$
11,387
  
$
42,594
  
Less portion of GE Commercial Financial Services
                             
not included in GECC
  
(2,916
)
  
(3,160
)
  
(3,064
)
  
(2,952
)
  
(12,092
)
Total revenues in GECC
$
7,476
  
$
7,159
  
$
7,432
  
$
8,435
  
$
30,502
  
                               
Net revenues
                              
Total revenues
$
7,476
  
$
7,159
  
$
7,432
  
$
8,435
  
$
30,502
  
Interest expense
  
1,165
    
1,174
    
1,233
    
1,378
    
4,950
  
Total net revenues
$
6,311
  
$
5,985
  
$
6,199
  
$
7,057
  
$
25,552
  
                               
Segment profit
$
1,110
  
$
827
  
$
1,135
  
$
1,067
  
$
4,139
  
Less portion of GE Commercial Financial Services
                             
not included in GECC
  
(194
)
  
(153
)
  
(17
)
  
128
    
(236
)
Total segment profit in GECC
$
916
  
$
674
  
$
1,118
  
$
1,195
  
$
3,903
  
                               
Quarters ended (In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
      
                               
                               
Total assets
$
353,065
  
$
349,260
  
$
353,112
  
$
363,593
        
Less portion of GE Commercial Financial Services
                              
not included in GECC
  
(53,570
)
  
(53,607
)
  
(56,194
)
  
(54,900
)
      
Total assets in GECC
$
299,495
  
$
295,653
  
$
296,918
  
$
308,693
        
                               
(In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
  
Total
year
  
                               
Revenues in GE
                              
Capital Solutions
$
2,652
  
$
2,848
  
$
2,877
  
$
3,126
  
$
11,503
  
Insurance
 
5,953
    
5,554
    
5,544
    
6,019
    
23,070
  
Real Estate
 
714
    
746
    
730
    
894
    
3,084
  
                               
Segment profit in GE
                              
Capital Solutions
$
251
  
$
268
  
$
351
  
$
455
  
$
1,325
  
Insurance
 
410
    
53
    
120
    
(14
)
  
569
  
Real Estate
 
245
    
262
    
243
    
374
    
1,124
  
                               
Quarters ended (In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
      
                               
Total assets in GE
                              
Capital Solutions
$
76,844
  
$
78,787
  
$
76,720
  
$
80,514
        
Insurance
 
175,142
    
171,112
    
176,265
    
179,205
        
Real Estate
 
38,105
    
37,218
    
37,736
    
39,515
        
 
(8)
 
GE Consumer Finance
 
2004
  
(In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
  
Total
year
  
                               
Revenues
$
3,589
  
$
3,830
  
$
4,011
  
$
4,304
  
$
15,734
  
Less portion of GE Consumer Finance
                             
not included in GECC
  
(9
)
  
-
    
-
    
-
    
(9
)
Total revenues in GECC
$
3,580
  
$
3,830
  
$
    4,011
  
$
4,304
  
$
15,725
  
                               
Net revenues
                              
Total revenues
$
3,580
  
$
3,830
  
$
4,011
  
$
4,304
  
$
15,725
  
Interest expense
  
769
    
844
    
907
    
1,040
    
3,560
  
Total net revenues
$
2,811
  
$
2,986
  
$
3,104
  
$
3,264
  
$
12,165
  
                               
Segment profit
$
602
  
$
600
  
$
681
  
$
637
  
$
2,520
  
Less portion of GE Consumer Finance
                             
not included in GECC
  
(15
)
  
3
    
(2
)
  
(11
)
  
(25
)
Total segment profit in GECC
$
587
  
$
603
  
$
679
  
$
626
  
$
2,495
  
                               
Quarters ended (In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
      
                               
Total assets
$
107,366
  
$
116,851
  
$
122,190
  
$
151,255
        
Less portion of GE Consumer Finance
                             
not included in GECC
  
(711
)
  
(710
)
  
(718
)
  
(724
)
      
Total assets in GECC
$
106,655
  
$
116,141
  
$
121,472
  
$
150,531
        
    

GE Industrial
 
2004
  
(In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
  
Total
year
  
                               
Revenues
$
7,036
  
$
7,673
  
$
7,635
  
$
8,378
  
$
30,722
  
Less portion of GE Industrial not included in GECC
  
(5,463
)
  
(6,067
)
  
(5,970
)
  
(6,651
)
  
(24,151
)
Total revenues in GECC
$
1,573
  
$
1,606
  
$
1,665
  
$
1,727
  
$
6,571
  
                               
Segment profit
$
368
  
$
450
  
$
402
  
$
613
  
$
1,833
  
Less portion of GE Industrial not included in GECC
  
(384
)
  
(437
)
  
(372
)
  
(559
)
  
(1,752
)
Total segment profit in GECC
$
(16
)
$
13
  
$
30
  
$
54
  
$
81
  
                               
Revenues in GE
                              
Consumer & Industrial
$
3,097
  
$
3,490
  
$
3,423
  
$
3,757
  
$
13,767
  
Equipment Services
 
1,573
    
1,606
    
1,665
    
1,727
    
6,571
  
Plastics
 
1,374
    
1,492
    
1,485
    
1,715
    
6,066
  
                               
Segment profit in GE
                              
Consumer & Industrial
$
149
  
$
204
  
$
163
  
$
200
  
$
716
  
Equipment Services
 
(16
)
  
13
    
30
    
55
    
82
  
Plastics
 
137
    
115
    
94
    
220
    
566
  
 
(9)
 
GE Infrastructure
 
 
2004
  
(In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
  
Total
year
  
                               
Revenues
$
8,314
  
$
9,108
  
$
9,074
  
$
10,877
  
$
37,373
  
Less portion of GE Infrastructure
                             
not included in GECC
  
(7,333
)
  
(8,067
)
  
(7,920
)
  
(9,763
)
  
(33,083
)
Total revenues in GECC
$
981
  
$
1,041
  
$
1,154
  
$
1,114
  
$
4,290
  
                               
Segment profit
$
1,501
  
$
1,592
  
$
1,608
  
$
2,096
  
$
6,797
  
Less portion of GE Infrastructure
                             
not included in GECC
  
(1,256
)
  
(1,370
)
  
(1,355
)
  
(1,847
)
  
(5,828
)
Total segment profit in GECC
$
245
  
$
222
  
$
253
  
$
249
  
$
969
  
                               
Revenues in GE
                              
Aircraft Engines
$
2,493
  
$
2,756
  
$
2,667
  
$
3,178
  
$
11,094
  
Aviation Services
  
715
    
777
    
792
    
875
    
3,159
  
Energy
  
3,297
    
3,472
    
3,417
    
4,400
    
14,586
  
Energy Financial Services
  
238
    
233
    
301
    
200
    
972
  
Oil & Gas
  
651
    
714
    
790
    
980
    
3,135
  
Rail
  
627
    
771
    
733
    
876
    
3,007
  
                               
Segment profit in GE
                              
Aircraft Engines
$
475
  
$
536
  
$
518
  
$
709
  
$
2,238
  
Aviation Services
  
144
    
133
    
76
    
167
    
520
  
Energy
  
613
    
575
    
553
    
802
    
2,543
  
Energy Financial Services
  
92
    
81
    
146
    
57
    
376
  
Oil & Gas
  
49
    
61
    
98
    
123
    
331
  
Rail
  
84
    
139
    
140
    
153
    
516
  

 
(10)