FORM 10-Q
|
(Mark One)
|
|||||
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
|
||||
THE SECURITIES EXCHANGE ACT OF 1934
|
|||||
For the quarterly period ended September 30, 2012
|
|||||
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 001-06461
_____________________________
|
|||||
GENERAL ELECTRIC CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
|
Delaware
|
13-1500700
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
901 Main Avenue, Norwalk, Connecticut
|
06851-1168
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer ¨
|
Accelerated filer ¨
|
Non-accelerated filer þ
|
Smaller reporting company ¨
|
Part I – Financial Information
|
Page
|
||
Item 1.
|
Financial Statements
|
||
Condensed Statement of Earnings
|
3
|
||
Condensed Statement of Comprehensive Income
|
4
|
||
Condensed Statement of Changes in Shareowners’ Equity
|
4
|
||
Condensed Statement of Financial Position
|
5
|
||
Condensed Statement of Cash Flows
|
6
|
||
Summary of Operating Segments
|
7
|
||
Notes to Condensed Financial Statements (Unaudited)
|
8
|
||
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
50
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
72
|
|
Item 4.
|
Controls and Procedures
|
72
|
|
Part II – Other Information
|
|||
Item 1.
|
Legal Proceedings
|
73
|
|
Item 6.
|
Exhibits
|
74
|
|
Signatures
|
75
|
||
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Revenues
|
|||||||||||
Revenues from services (a)
|
$
|
11,360
|
$
|
12,051
|
$
|
34,268
|
$
|
37,561
|
|||
Other-than-temporary impairment on investment securities:
|
|||||||||||
Total other-than-temporary impairment on investment securities
|
(25)
|
(86)
|
(90)
|
(270)
|
|||||||
Less: Portion of other-than-temporary impairment recognized in
|
|||||||||||
accumulated other comprehensive income
|
–
|
18
|
1
|
84
|
|||||||
Net other-than-temporary impairment on investment securities
|
|||||||||||
recognized in earnings
|
(25)
|
(68)
|
(89)
|
(186)
|
|||||||
Revenues from services (Note 9)
|
11,335
|
11,983
|
34,179
|
37,375
|
|||||||
Sales of goods
|
34
|
32
|
90
|
116
|
|||||||
Total revenues
|
11,369
|
12,015
|
34,269
|
37,491
|
|||||||
Costs and expenses
|
|||||||||||
Interest
|
2,805
|
3,556
|
8,989
|
10,738
|
|||||||
Operating and administrative
|
3,072
|
3,260
|
9,063
|
10,186
|
|||||||
Cost of goods sold
|
27
|
30
|
75
|
108
|
|||||||
Investment contracts, insurance losses and insurance annuity benefits
|
798
|
755
|
2,271
|
2,314
|
|||||||
Provision for losses on financing receivables
|
1,122
|
961
|
2,728
|
2,893
|
|||||||
Depreciation and amortization
|
1,768
|
1,837
|
5,137
|
5,405
|
|||||||
Total costs and expenses
|
9,592
|
10,399
|
28,263
|
31,644
|
|||||||
Earnings (loss) from continuing operations before income taxes
|
1,777
|
1,616
|
6,006
|
5,847
|
|||||||
Benefit (provision) for income taxes
|
(78)
|
(59)
|
(367)
|
(834)
|
|||||||
Earnings from continuing operations
|
1,699
|
1,557
|
5,639
|
5,013
|
|||||||
Earnings (loss) from discontinued operations, net of taxes (Note 2)
|
(111)
|
(64)
|
(881)
|
166
|
|||||||
Net earnings (loss)
|
1,588
|
1,493
|
4,758
|
5,179
|
|||||||
Less net earnings (loss) attributable to noncontrolling interests
|
20
|
38
|
46
|
89
|
|||||||
Net earnings (loss) attributable to GECC
|
$
|
1,568
|
$
|
1,455
|
$
|
4,712
|
$
|
5,090
|
|||
Amounts attributable to GECC
|
|||||||||||
Earnings from continuing operations
|
$
|
1,679
|
$
|
1,519
|
$
|
5,593
|
$
|
4,924
|
|||
Earnings (loss) from discontinued operations, net of taxes
|
(111)
|
(64)
|
(881)
|
166
|
|||||||
Net earnings (loss) attributable to GECC
|
$
|
1,568
|
$
|
1,455
|
$
|
4,712
|
$
|
5,090
|
|||
(a)
|
Excluding net other-than-temporary impairment on investment securities.
|
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Net earnings
|
$
|
1,588
|
$
|
1,493
|
$
|
4,758
|
$
|
5,179
|
|||
Less net earnings (loss) attributable to noncontrolling interests
|
20
|
38
|
46
|
89
|
|||||||
Net earnings attributable to GECC
|
$
|
1,568
|
$
|
1,455
|
$
|
4,712
|
$
|
5,090
|
|||
Other comprehensive income (loss), net of tax
|
|||||||||||
Investment securities
|
$
|
125
|
$
|
249
|
$
|
635
|
$
|
451
|
|||
Currency translation adjustments
|
526
|
(810)
|
252
|
1,730
|
|||||||
Cash flow hedges
|
29
|
(48)
|
141
|
(310)
|
|||||||
Benefit plans
|
(11)
|
28
|
(16)
|
27
|
|||||||
Other comprehensive income (loss), net of tax
|
669
|
(581)
|
1,012
|
1,898
|
|||||||
Less other comprehensive income (loss) attributable to
|
|||||||||||
noncontrolling interests
|
(2)
|
22
|
(1)
|
13
|
|||||||
Other comprehensive income (loss) attributable to GECC
|
$
|
671
|
$
|
(603)
|
$
|
1,013
|
$
|
1,885
|
|||
Comprehensive income, net of tax
|
2,257
|
912
|
5,770
|
7,077
|
|||||||
Less comprehensive income attributable to noncontrolling interests
|
18
|
60
|
45
|
102
|
|||||||
Comprehensive income attributable to GECC
|
$
|
2,239
|
$
|
852
|
$
|
5,725
|
$
|
6,975
|
|||
Nine months ended September 30,
|
|||||||||||
(In millions)
|
2012
|
2011
|
|||||||||
Beginning balance
|
$
|
77,110
|
$
|
68,984
|
|||||||
Dividends and other transactions with shareowners
|
(1,486)
|
–
|
|||||||||
Other comprehensive income (loss), net of tax
|
1,013
|
1,885
|
|||||||||
Increases from net earnings attributable to the Company
|
4,712
|
5,090
|
|||||||||
Ending balance
|
81,349
|
75,959
|
|||||||||
Noncontrolling interests
|
711
|
1,205
|
|||||||||
Total equity
|
$
|
82,060
|
$
|
77,164
|
September 30,
|
December 31,
|
||||||||||
(In millions, except share information)
|
2012
|
2011
|
|||||||||
(Unaudited)
|
|||||||||||
Assets
|
|||||||||||
Cash and equivalents
|
$
|
77,666
|
$
|
76,702
|
|||||||
Investment securities (Note 3)
|
48,695
|
47,359
|
|||||||||
Inventories
|
73
|
51
|
|||||||||
Financing receivables – net (Notes 4 and 12)
|
271,623
|
288,847
|
|||||||||
Other receivables
|
13,772
|
13,390
|
|||||||||
Property, plant and equipment, less accumulated amortization of $23,886
|
|||||||||||
and $23,615
|
52,288
|
51,419
|
|||||||||
Goodwill (Note 5)
|
27,338
|
27,230
|
|||||||||
Other intangible assets – net (Note 5)
|
1,361
|
1,546
|
|||||||||
Other assets
|
64,887
|
75,612
|
|||||||||
Assets of businesses held for sale (Note 2)
|
2,700
|
711
|
|||||||||
Assets of discontinued operations (Note 2)
|
1,199
|
1,669
|
|||||||||
Total assets(a)
|
$
|
561,602
|
$
|
584,536
|
|||||||
Liabilities and equity
|
|||||||||||
Short-term borrowings (Note 6)
|
$
|
113,587
|
$
|
136,333
|
|||||||
Accounts payable
|
7,007
|
7,239
|
|||||||||
Non-recourse borrowings of consolidated securitization entities (Note 6)
|
31,171
|
29,258
|
|||||||||
Bank deposits (Note 6)
|
45,196
|
43,115
|
|||||||||
Long-term borrowings (Note 6)
|
230,402
|
234,391
|
|||||||||
Investment contracts, insurance liabilities and insurance annuity benefits
|
28,806
|
30,198
|
|||||||||
Other liabilities
|
15,445
|
17,334
|
|||||||||
Deferred income taxes
|
5,945
|
7,052
|
|||||||||
Liabilities of businesses held for sale (Note 2)
|
206
|
345
|
|||||||||
Liabilities of discontinued operations (Note 2)
|
1,777
|
1,471
|
|||||||||
Total liabilities(a)
|
479,542
|
506,736
|
|||||||||
Preferred stock, $0.01 par value (750,000 shares authorized at both September 30, 2012
|
|||||||||||
and December 31, 2011 and 40,000 shares and 0 shares issued and outstanding
|
–
|
–
|
|||||||||
at September 30, 2012 and December 31, 2011, respectively)
|
|||||||||||
Common stock, $14 par value (4,166,000 shares authorized at
|
|||||||||||
both September 30, 2012 and December 31, 2011 and 1,000 shares
|
|||||||||||
issued and outstanding at both September 30, 2012 and December 31, 2011)
|
– | – | |||||||||
Accumulated other comprehensive income – net(b)
|
|||||||||||
Investment securities
|
602
|
(33)
|
|||||||||
Currency translation adjustments
|
(145)
|
(399)
|
|||||||||
Cash flow hedges
|
(961)
|
(1,101)
|
|||||||||
Benefit plans
|
(579)
|
(563)
|
|||||||||
Additional paid-in capital
|
31,589
|
27,628
|
|||||||||
Retained earnings
|
50,843
|
51,578
|
|||||||||
Total GECC shareowners' equity
|
81,349
|
77,110
|
|||||||||
Noncontrolling interests(c)(Note 8)
|
711
|
690
|
|||||||||
Total equity
|
82,060
|
77,800
|
|||||||||
Total liabilities and equity
|
$
|
561,602
|
$
|
584,536
|
|||||||
|
(a)
|
Our consolidated assets at September 30, 2012 include total assets of $47,623 million of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs. These assets include net financing receivables of $40,422 million and investment securities of $4,797 million. Our consolidated liabilities at September 30, 2012 include liabilities of certain VIEs for which the VIE creditors do not have recourse to GECC. These liabilities include non-recourse borrowings of consolidated securitization entities (CSEs) of $30,270 million. See Note 13.
|
(b)
|
The sum of accumulated other comprehensive income − net was $(1,083) million and $(2,096) million at September 30, 2012 and December 31, 2011, respectively.
|
(c)
|
Included accumulated other comprehensive income − net attributable to noncontrolling interests of $(140) million and $(141) million at September 30, 2012 and December 31, 2011, respectively.
|
Nine months ended September 30,
|
|||||||||||
(In millions)
|
2012
|
2011
|
|||||||||
Cash flows – operating activities
|
|||||||||||
Net earnings
|
$
|
4,758
|
$
|
5,179
|
|||||||
Less net earnings (loss) attributable to noncontrolling interests
|
46
|
89
|
|||||||||
Net earnings attributable to GECC
|
4,712
|
5,090
|
|||||||||
(Earnings) loss from discontinued operations
|
881
|
(166)
|
|||||||||
Adjustments to reconcile net earnings attributable to GECC
|
|||||||||||
to cash provided from operating activities
|
|||||||||||
Depreciation and amortization of property, plant and equipment
|
5,137
|
5,405
|
|||||||||
Increase (decrease) in accounts payable
|
(287)
|
1,103
|
|||||||||
Provision for losses on financing receivables
|
2,728
|
2,893
|
|||||||||
All other operating activities
|
1,841
|
2,328
|
|||||||||
Cash from (used for) operating activities – continuing operations
|
15,012
|
16,653
|
|||||||||
Cash from (used for) operating activities – discontinued operations
|
20
|
821
|
|||||||||
Cash from (used for) operating activities
|
15,032
|
17,474
|
|||||||||
Cash flows – investing activities
|
|||||||||||
Additions to property, plant and equipment
|
(8,096)
|
(7,149)
|
|||||||||
Dispositions of property, plant and equipment
|
4,848
|
4,637
|
|||||||||
Increase in loans to customers
|
(217,198)
|
(234,522)
|
|||||||||
Principal collections from customers – loans
|
227,408
|
249,413
|
|||||||||
Investment in equipment for financing leases
|
(6,585)
|
(6,920)
|
|||||||||
Principal collections from customers – financing leases
|
9,150
|
9,797
|
|||||||||
Net change in credit card receivables
|
(3,254)
|
746
|
|||||||||
Proceeds from sale of discontinued operations
|
227
|
8,951
|
|||||||||
Proceeds from principal business dispositions
|
244
|
2,117
|
|||||||||
Payments for principal businesses purchased
|
–
|
(50)
|
|||||||||
All other investing activities
|
9,383
|
4,229
|
|||||||||
Cash from (used for) investing activities – continuing operations
|
16,127
|
31,249
|
|||||||||
Cash from (used for) investing activities – discontinued operations
|
(30)
|
(789)
|
|||||||||
Cash from (used for) investing activities
|
16,097
|
30,460
|
|||||||||
Cash flows – financing activities
|
|||||||||||
Net increase (decrease) in borrowings (maturities of 90 days or less)
|
(1,209)
|
(1,893)
|
|||||||||
Net increase (decrease) in bank deposits
|
1,195
|
3,746
|
|||||||||
Newly issued debt (maturities longer than 90 days)
|
|||||||||||
Short-term (91 to 365 days)
|
59
|
10
|
|||||||||
Long-term (longer than one year)
|
43,156
|
33,798
|
|||||||||
Non-recourse, leveraged lease
|
–
|
–
|
|||||||||
Repayments and other debt reductions (maturities longer than 90 days)
|
|||||||||||
Short-term (91 to 365 days)
|
(66,837)
|
(58,005)
|
|||||||||
Long-term (longer than one year)
|
(3,162)
|
(1,603)
|
|||||||||
Non-recourse, leveraged lease
|
(389)
|
(640)
|
|||||||||
Proceeds from issuance of preferred stock
|
3,960
|
–
|
|||||||||
Dividends paid to shareowner
|
(5,446)
|
–
|
|||||||||
All other financing activities
|
(2,729)
|
(1,336)
|
|||||||||
Cash from (used for) financing activities – continuing operations
|
(31,402)
|
(25,923)
|
|||||||||
Cash from (used for) financing activities – discontinued operations
|
–
|
(42)
|
|||||||||
Cash from (used for) financing activities
|
(31,402)
|
(25,965)
|
|||||||||
Effect of currency exchange rate changes on cash and equivalents
|
1,227
|
1,042
|
|||||||||
Increase (decrease) in cash and equivalents
|
954
|
23,011
|
|||||||||
Cash and equivalents at beginning of year
|
76,823
|
60,398
|
|||||||||
Cash and equivalents at September 30
|
77,777
|
83,409
|
|||||||||
Less cash and equivalents of discontinued operations at September 30
|
111
|
131
|
|||||||||
Cash and equivalents of continuing operations at September 30
|
$
|
77,666
|
$
|
83,278
|
|||||||
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(Unaudited)
|
(Unaudited)
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Revenues
|
|||||||||||
CLL
|
$
|
4,124
|
$
|
4,512
|
$
|
12,707
|
$
|
13,786
|
|||
Consumer
|
3,911
|
4,028
|
11,600
|
13,023
|
|||||||
Real Estate
|
948
|
935
|
2,660
|
2,834
|
|||||||
Energy Financial Services
|
401
|
221
|
1,086
|
931
|
|||||||
GECAS
|
1,249
|
1,265
|
3,897
|
3,917
|
|||||||
Total segment revenues
|
10,633
|
10,961
|
31,950
|
34,491
|
|||||||
Corporate items and eliminations
|
736
|
1,054
|
2,319
|
3,000
|
|||||||
Total revenues in GECC
|
$
|
11,369
|
$
|
12,015
|
$
|
34,269
|
$
|
37,491
|
|||
Segment profit
|
|||||||||||
CLL
|
$
|
568
|
$
|
688
|
$
|
1,879
|
$
|
1,943
|
|||
Consumer
|
749
|
803
|
2,485
|
3,086
|
|||||||
Real Estate
|
217
|
(82)
|
494
|
(775)
|
|||||||
Energy Financial Services
|
132
|
79
|
325
|
330
|
|||||||
GECAS
|
251
|
208
|
877
|
835
|
|||||||
Total segment profit
|
1,917
|
1,696
|
6,060
|
5,419
|
|||||||
Corporate items and eliminations
|
(238)
|
(177)
|
(467)
|
(495)
|
|||||||
Earnings from continuing operations
|
|||||||||||
attributable to GECC
|
1,679
|
1,519
|
5,593
|
4,924
|
|||||||
Earnings (loss) from discontinued operations,
|
|||||||||||
net of taxes, attributable to GECC
|
(111)
|
(64)
|
(881)
|
166
|
|||||||
Total net earnings attributable to GECC
|
$
|
1,568
|
$
|
1,455
|
$
|
4,712
|
$
|
5,090
|
|||
September 30,
|
December 31,
|
||||||||||
(In millions)
|
2012
|
2011
|
|||||||||
|
|||||||||||
Assets
|
|
||||||||||
Cash and equivalents
|
$
|
99
|
$
|
149
|
|||||||
Financing receivables – net
|
2,406
|
412
|
|||||||||
Property, plant and equipment – net
|
|
38
|
|
|
81
|
||||||
All other
|
157
|
69
|
|||||||||
Assets of businesses held for sale
|
$
|
2,700
|
$
|
711
|
|||||||
|
|
||||||||||
Liabilities
|
|
|
|||||||||
Short-term borrowings
|
$
|
186
|
$
|
252
|
|||||||
All other
|
|
20
|
|
|
93
|
||||||
Liabilities of businesses held for sale
|
$
|
206
|
|
$
|
345
|
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Operations
|
|||||||||||
Total revenues (loss)
|
$
|
(112)
|
$
|
17
|
$
|
(462)
|
$
|
348
|
|||
Earnings (loss) from discontinued operations before income taxes
|
$
|
(141)
|
$
|
(74)
|
$
|
(579)
|
$
|
(112)
|
|||
Benefit (provision) for income taxes
|
28
|
22
|
155
|
55
|
|||||||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(113)
|
$
|
(52)
|
$
|
(424)
|
$
|
(57)
|
|||
Disposal
|
|||||||||||
Gain (loss) on disposal before income taxes
|
$
|
(4)
|
$
|
(45)
|
$
|
(506)
|
$
|
(86)
|
|||
Benefit (provision) for income taxes
|
6
|
33
|
49
|
309
|
|||||||
Gain (loss) on disposal, net of taxes
|
$
|
2
|
$
|
(12)
|
$
|
(457)
|
$
|
223
|
|||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(111)
|
$
|
(64)
|
$
|
(881)
|
$
|
166
|
|||
September 30,
|
December 31,
|
||||||||||
(In millions)
|
2012
|
2011
|
|||||||||
Assets
|
|||||||||||
Cash and equivalents
|
$
|
111
|
$
|
121
|
|||||||
Financing receivables - net
|
6
|
521
|
|||||||||
Other
|
1,082
|
1,027
|
|||||||||
Assets of discontinued operations
|
$
|
1,199
|
$
|
1,669
|
|||||||
Liabilities
|
|||||||||||
Deferred income taxes
|
$
|
360
|
$
|
207
|
|||||||
Other
|
1,417
|
1,264
|
|||||||||
Liabilities of discontinued operations
|
$
|
1,777
|
$
|
1,471
|
|||||||
September 30, 2012
|
December 31, 2011
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
Gross
|
||||||||||||||||||||
Amortized
|
unrealized
|
unrealized
|
Estimated
|
Amortized
|
unrealized
|
unrealized
|
Estimated
|
||||||||||||||||
(In millions)
|
cost
|
gains
|
losses
|
fair value
|
cost
|
gains
|
losses
|
fair value
|
|||||||||||||||
Debt
|
|||||||||||||||||||||||
U.S. corporate
|
$
|
20,264
|
$
|
4,242
|
$
|
(327)
|
$
|
24,179
|
$
|
20,748
|
$
|
3,432
|
$
|
(410)
|
$
|
23,770
|
|||||||
State and municipal
|
4,032
|
579
|
(120)
|
4,491
|
3,027
|
350
|
(143)
|
3,234
|
|||||||||||||||
Residential mortgage-backed(a)
|
2,360
|
205
|
(141)
|
2,424
|
2,711
|
184
|
(286)
|
2,609
|
|||||||||||||||
Commercial mortgage-backed
|
2,975
|
230
|
(126)
|
3,079
|
2,913
|
162
|
(247)
|
2,828
|
|||||||||||||||
Asset-backed
|
5,588
|
68
|
(111)
|
5,545
|
5,102
|
32
|
(164)
|
4,970
|
|||||||||||||||
Corporate – non-U.S.
|
2,550
|
163
|
(134)
|
2,579
|
2,414
|
126
|
(207)
|
2,333
|
|||||||||||||||
Government – non-U.S.
|
1,812
|
149
|
(4)
|
1,957
|
2,488
|
129
|
(86)
|
2,531
|
|||||||||||||||
U.S. government and
|
|||||||||||||||||||||||
federal agency
|
3,480
|
96
|
–
|
3,576
|
3,974
|
84
|
–
|
4,058
|
|||||||||||||||
Retained interests
|
27
|
2
|
–
|
29
|
25
|
10
|
–
|
35
|
|||||||||||||||
Equity
|
|||||||||||||||||||||||
Available-for-sale
|
480
|
110
|
(17)
|
573
|
713
|
75
|
(38)
|
750
|
|||||||||||||||
Trading
|
263
|
–
|
–
|
263
|
241
|
–
|
–
|
241
|
|||||||||||||||
Total
|
$
|
43,831
|
$
|
5,844
|
$
|
(980)
|
$
|
48,695
|
$
|
44,356
|
$
|
4,584
|
$
|
(1,581)
|
$
|
47,359
|
|||||||
(a)
|
Substantially collateralized by U.S. mortgages. Of our total residential mortgage-backed securities (RMBS) portfolio at September 30, 2012, $1,529 million relates to securities issued by government sponsored entities and $895 million relates to securities of private label issuers. Securities issued by private label issuers are collateralized primarily by pools of individual direct mortgage loans of financial institutions.
|
In loss position for
|
||||||||||||
Less than 12 months
|
12 months or more
|
|||||||||||
|
Gross
|
|
Gross
|
|||||||||
Estimated
|
unrealized
|
Estimated
|
unrealized
|
|||||||||
(In millions)
|
fair value
|
losses
|
(a)
|
fair value
|
losses
|
(a)
|
||||||
September 30, 2012
|
||||||||||||
Debt
|
||||||||||||
U.S. corporate
|
$
|
266
|
$
|
(11)
|
$
|
942
|
$
|
(316)
|
||||
State and municipal
|
81
|
(1)
|
316
|
(119)
|
||||||||
Residential mortgage-backed
|
18
|
–
|
709
|
(141)
|
||||||||
Commercial mortgage-backed
|
56
|
(1)
|
1,006
|
(125)
|
||||||||
Asset-backed
|
9
|
(2)
|
746
|
(109)
|
||||||||
Corporate – non-U.S.
|
138
|
(10)
|
622
|
(124)
|
||||||||
Government – non-U.S.
|
142
|
(1)
|
94
|
(3)
|
||||||||
U.S. government and federal agency
|
–
|
–
|
–
|
–
|
||||||||
Retained interests
|
2
|
–
|
–
|
–
|
||||||||
Equity
|
57
|
(16)
|
7
|
(1)
|
||||||||
Total
|
$
|
769
|
$
|
(42)
|
$
|
4,442
|
$
|
(938)
|
||||
December 31, 2011
|
||||||||||||
Debt
|
||||||||||||
U.S. corporate
|
$
|
1,435
|
$
|
(241)
|
$
|
836
|
$
|
(169)
|
||||
State and municipal
|
87
|
(1)
|
307
|
(142)
|
||||||||
Residential mortgage-backed
|
219
|
(9)
|
825
|
(277)
|
||||||||
Commercial mortgage-backed
|
244
|
(23)
|
1,320
|
(224)
|
||||||||
Asset-backed
|
100
|
(7)
|
850
|
(157)
|
||||||||
Corporate – non-U.S.
|
330
|
(28)
|
607
|
(179)
|
||||||||
Government – non-U.S.
|
906
|
(5)
|
203
|
(81)
|
||||||||
U.S. government and federal agency
|
502
|
–
|
–
|
–
|
||||||||
Retained interests
|
–
|
–
|
–
|
–
|
||||||||
Equity
|
440
|
(38)
|
–
|
–
|
||||||||
Total
|
$
|
4,263
|
$
|
(352)
|
$
|
4,948
|
$
|
(1,229)
|
||||
(a)
|
(In millions)
|
Amortized
|
Estimated
|
|||||||||
cost
|
fair value
|
||||||||||
Due in
|
|||||||||||
2012
|
$
|
2,220
|
$
|
2,245
|
|||||||
2013-2016
|
7,399
|
7,391
|
|||||||||
2017-2021
|
4,752
|
5,270
|
|||||||||
2022 and later
|
17,761
|
21,870
|
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Gains
|
$
|
26
|
$
|
28
|
$
|
85
|
$
|
189
|
|||
Losses, including impairments
|
(55)
|
(70)
|
(159)
|
(197)
|
|||||||
Net
|
$
|
(29)
|
$
|
(42)
|
$
|
(74)
|
$
|
(8)
|
|||
September 30,
|
December 31,
|
||||||||||
(In millions)
|
2012
|
2011
|
|||||||||
Loans, net of deferred income(a)
|
$
|
242,729
|
$
|
256,895
|
|||||||
Investment in financing leases, net of deferred income
|
34,274
|
38,142
|
|||||||||
277,003
|
295,037
|
||||||||||
Less allowance for losses
|
(5,380)
|
(6,190)
|
|||||||||
Financing receivables – net(b)
|
$
|
271,623
|
$
|
288,847
|
|||||||
(a)
|
Deferred income was $2,221 million and $2,329 million at September 30, 2012 and December 31, 2011, respectively.
|
(b)
|
Financing receivables at September 30, 2012 and December 31, 2011 included $845 million and $1,062 million, respectively, of loans that were acquired in a transfer but have been subject to credit deterioration since origination per ASC 310, Receivables.
|
September 30,
|
December 31,
|
||||||||||
(In millions)
|
2012
|
2011
|
|||||||||
Commercial
|
|||||||||||
CLL
|
|||||||||||
Americas
|
$
|
74,488
|
$
|
80,505
|
|||||||
Europe
|
34,916
|
36,899
|
|||||||||
Asia
|
11,597
|
11,635
|
|||||||||
Other
|
659
|
436
|
|||||||||
Total CLL
|
121,660
|
129,475
|
|||||||||
Energy Financial Services
|
4,989
|
5,912
|
|||||||||
GECAS
|
11,628
|
11,901
|
|||||||||
Other
|
537
|
1,282
|
|||||||||
Total Commercial financing receivables
|
138,814
|
148,570
|
|||||||||
Real Estate
|
|||||||||||
Debt
|
21,225
|
24,501
|
|||||||||
Business Properties
|
5,069
|
8,248
|
|||||||||
Total Real Estate financing receivables
|
26,294
|
32,749
|
|||||||||
Consumer
|
|||||||||||
Non-U.S. residential mortgages
|
33,855
|
35,550
|
|||||||||
Non-U.S. installment and revolving credit
|
18,504
|
18,544
|
|||||||||
U.S. installment and revolving credit
|
46,939
|
46,689
|
|||||||||
Non-U.S. auto
|
4,601
|
5,691
|
|||||||||
Other
|
7,996
|
7,244
|
|||||||||
Total Consumer financing receivables
|
111,895
|
113,718
|
|||||||||
Total financing receivables
|
277,003
|
295,037
|
|||||||||
Less allowance for losses
|
(5,380)
|
(6,190)
|
|||||||||
Total financing receivables – net
|
$
|
271,623
|
$
|
288,847
|
|||||||
Balance at
|
Provision
|
Balance at
|
|||||||||||||||
January 1,
|
charged to
|
Gross
|
September 30,
|
||||||||||||||
(In millions)
|
2012
|
operations
|
Other
|
(a)
|
write-offs
|
(b)
|
Recoveries
|
(b)
|
2012
|
||||||||
Commercial
|
|||||||||||||||||
CLL
|
|||||||||||||||||
Americas
|
$
|
889
|
$
|
67
|
$
|
(43)
|
$
|
(423)
|
$
|
77
|
$
|
567
|
|||||
Europe
|
400
|
271
|
(3)
|
(142)
|
48
|
574
|
|||||||||||
Asia
|
157
|
13
|
(1)
|
(117)
|
20
|
72
|
|||||||||||
Other
|
4
|
9
|
(1)
|
(10)
|
–
|
2
|
|||||||||||
Total CLL
|
1,450
|
360
|
(48)
|
(692)
|
145
|
1,215
|
|||||||||||
Energy Financial Services
|
26
|
8
|
–
|
(24)
|
3
|
13
|
|||||||||||
GECAS
|
17
|
7
|
(1)
|
(11)
|
–
|
12
|
|||||||||||
Other
|
37
|
3
|
(19)
|
(13)
|
1
|
9
|
|||||||||||
Total Commercial
|
1,530
|
378
|
(68)
|
(740)
|
149
|
1,249
|
|||||||||||
Real Estate
|
|||||||||||||||||
Debt
|
949
|
60
|
1
|
(384)
|
5
|
631
|
|||||||||||
Business Properties
|
140
|
41
|
(8)
|
(71)
|
3
|
105
|
|||||||||||
Total Real Estate
|
1,089
|
101
|
(7)
|
(455)
|
8
|
736
|
|||||||||||
Consumer
|
|||||||||||||||||
Non-U.S. residential
|
|||||||||||||||||
mortgages
|
546
|
66
|
5
|
(213)
|
63
|
467
|
|||||||||||
Non-U.S. installment
|
|||||||||||||||||
and revolving credit
|
717
|
270
|
22
|
(798)
|
443
|
654
|
|||||||||||
U.S. installment and
|
|||||||||||||||||
revolving credit
|
2,008
|
1,807
|
(18)
|
(2,140)
|
373
|
2,030
|
|||||||||||
Non-U.S. auto
|
101
|
18
|
(7)
|
(110)
|
71
|
73
|
|||||||||||
Other
|
199
|
88
|
15
|
(193)
|
62
|
171
|
|||||||||||
Total Consumer
|
3,571
|
2,249
|
17
|
(3,454)
|
1,012
|
3,395
|
|||||||||||
Total
|
$
|
6,190
|
$
|
2,728
|
$
|
(58)
|
$
|
(4,649)
|
$
|
1,169
|
$
|
5,380
|
|||||
(a)
|
Other primarily included transfers to held for sale and the effects of currency exchange.
|
(b)
|
Net write-offs (gross write-offs less recoveries) in certain portfolios may exceed the beginning allowance for losses as our revolving credit portfolios turn over more than once per year or, in all portfolios, can reflect losses that are incurred subsequent to the beginning of the fiscal year due to information becoming available during the current year, which may identify further deterioration on existing financing receivables.
|
Balance at
|
Provision
|
Balance at
|
|||||||||||||||
January 1,
|
charged to
|
Gross
|
September 30,
|
||||||||||||||
(In millions)
|
2011
|
operations
|
Other
|
(a)
|
write-offs
|
(b)
|
Recoveries
|
(b)
|
2011
|
||||||||
Commercial
|
|||||||||||||||||
CLL
|
|||||||||||||||||
Americas
|
$
|
1,288
|
$
|
250
|
$
|
(79)
|
$
|
(544)
|
$
|
80
|
$
|
995
|
|||||
Europe
|
429
|
126
|
17
|
(218)
|
49
|
403
|
|||||||||||
Asia
|
222
|
81
|
16
|
(194)
|
25
|
150
|
|||||||||||
Other
|
6
|
3
|
(4)
|
–
|
–
|
5
|
|||||||||||
Total CLL
|
1,945
|
460
|
(50)
|
(956)
|
154
|
1,553
|
|||||||||||
Energy Financial Services
|
22
|
10
|
–
|
(4)
|
8
|
36
|
|||||||||||
GECAS
|
20
|
(4)
|
–
|
(2)
|
–
|
14
|
|||||||||||
Other
|
58
|
13
|
–
|
(31)
|
3
|
43
|
|||||||||||
Total Commercial
|
2,045
|
479
|
(50)
|
(993)
|
165
|
1,646
|
|||||||||||
Real Estate
|
|||||||||||||||||
Debt
|
1,292
|
155
|
13
|
(494)
|
12
|
978
|
|||||||||||
Business Properties
|
196
|
70
|
–
|
(107)
|
4
|
163
|
|||||||||||
Total Real Estate
|
1,488
|
225
|
13
|
(601)
|
16
|
1,141
|
|||||||||||
Consumer
|
|||||||||||||||||
Non-U.S. residential
|
|||||||||||||||||
mortgages
|
689
|
56
|
8
|
(169)
|
38
|
622
|
|||||||||||
Non-U.S. installment
|
|||||||||||||||||
and revolving credit
|
937
|
413
|
16
|
(980)
|
430
|
816
|
|||||||||||
U.S. installment and
|
|||||||||||||||||
revolving credit
|
2,333
|
1,587
|
(1)
|
(2,365)
|
399
|
1,953
|
|||||||||||
Non-U.S. auto
|
168
|
26
|
7
|
(176)
|
98
|
123
|
|||||||||||
Other
|
259
|
107
|
(6)
|
(215)
|
66
|
211
|
|||||||||||
Total Consumer
|
4,386
|
2,189
|
24
|
(3,905)
|
1,031
|
3,725
|
|||||||||||
Total
|
$
|
7,919
|
$
|
2,893
|
$
|
(13)
|
$
|
(5,499)
|
$
|
1,212
|
$
|
6,512
|
|||||
(a)
|
Other primarily included transfers to held for sale and the effects of currency exchange.
|
(b)
|
Net write-offs (gross write-offs less recoveries) in certain portfolios may exceed the beginning allowance for losses as our revolving credit portfolios turn over more than once per year or, in all portfolios, can reflect losses that are incurred subsequent to the beginning of the fiscal year due to information becoming available during the current year, which may identify further deterioration on existing financing receivables.
|
September 30,
|
December 31,
|
||||||||||
(In millions)
|
2012
|
2011
|
|||||||||
Goodwill
|
$
|
27,338
|
$
|
27,230
|
|||||||
Other intangible assets - net
|
|||||||||||
Intangible assets subject to amortization
|
$
|
1,361
|
$
|
1,546
|
|||||||
Dispositions,
|
|||||||||||
Balance at
|
currency
|
Balance at
|
|||||||||
January 1,
|
exchange
|
September 30,
|
|||||||||
(In millions)
|
2012
|
Acquisitions
|
and other
|
2012
|
|||||||
CLL
|
$
|
13,745
|
|
$
|
–
|
|
$
|
30
|
$
|
13,775
|
|
Consumer
|
10,775
|
|
–
|
118
|
10,893
|
||||||
Real Estate
|
1,001
|
–
|
(40)
|
961
|
|||||||
Energy Financial Services
|
1,562
|
–
|
–
|
1,562
|
|||||||
GECAS
|
147
|
–
|
–
|
147
|
|||||||
Total
|
$
|
27,230
|
$
|
–
|
$
|
108
|
$
|
27,338
|
|||
September 30, 2012
|
December 31, 2011
|
||||||||||||||||
Gross
|
Gross
|
||||||||||||||||
carrying
|
Accumulated
|
carrying
|
Accumulated
|
||||||||||||||
(In millions)
|
amount
|
amortization
|
Net
|
amount
|
amortization
|
Net
|
|||||||||||
Customer-related
|
$
|
1,204
|
$
|
(786)
|
$
|
418
|
$
|
1,186
|
$
|
(697)
|
$
|
489
|
|||||
Patents, licenses and
|
|||||||||||||||||
trademarks
|
235
|
(202)
|
33
|
250
|
(208)
|
42
|
|||||||||||
Capitalized software
|
2,167
|
(1,722)
|
445
|
2,048
|
(1,597)
|
451
|
|||||||||||
Lease valuations
|
1,315
|
(881)
|
434
|
1,470
|
(944)
|
526
|
|||||||||||
Present value of
|
|||||||||||||||||
future profits (a)
|
524
|
(524)
|
–
|
491
|
(491)
|
–
|
|||||||||||
All other
|
283
|
(252)
|
31
|
327
|
(289)
|
38
|
|||||||||||
Total
|
$
|
5,728
|
$
|
(4,367)
|
$
|
1,361
|
$
|
5,772
|
$
|
(4,226)
|
$
|
1,546
|
|||||
(In millions)
|
September 30,
|
December 31,
|
|||||||||
2012
|
2011
|
||||||||||
Short-term borrowings
|
|||||||||||
Commercial paper
|
|||||||||||
U.S.
|
$
|
33,196
|
$
|
33,591
|
|||||||
Non-U.S.
|
9,861
|
10,569
|
|||||||||
Current portion of long-term borrowings(a)(b)(c)(e)
|
61,071
|
82,650
|
|||||||||
GE Interest Plus notes(d)
|
8,301
|
8,474
|
|||||||||
Other(c)
|
1,158
|
1,049
|
|||||||||
Total short-term borrowings
|
$
|
113,587
|
$
|
136,333
|
|||||||
Long-term borrowings
|
|||||||||||
Senior unsecured notes(b)
|
$
|
207,852
|
$
|
210,154
|
|||||||
Subordinated notes(e)
|
4,979
|
4,862
|
|||||||||
Subordinated debentures(f)(g)
|
7,239
|
7,215
|
|||||||||
Other(c)(h)
|
10,332
|
12,160
|
|||||||||
Total long-term borrowings
|
$
|
230,402
|
$
|
234,391
|
|||||||
Non-recourse borrowings of consolidated securitization entities(i)
|
$
|
31,171
|
$
|
29,258
|
|||||||
Bank deposits(j)
|
$
|
45,196
|
$
|
43,115
|
|||||||
Total borrowings and bank deposits
|
$
|
420,356
|
$
|
443,097
|
|||||||
(a)
|
GECC had issued and outstanding $12,550 million and $35,040 million of senior, unsecured debt that was guaranteed by the Federal Deposit Insurance Corporation (FDIC) under the Temporary Liquidity Guarantee Program at September 30, 2012 and December 31, 2011, respectively.
|
(b)
|
Included in total long-term borrowings were $817 million and $1,845 million of obligations to holders of guaranteed investment contracts at September 30, 2012 and December 31, 2011, respectively. These obligations included conditions under which certain GIC holders could require immediate repayment of their investment should the long-term credit ratings of GECC fall below AA–/Aa3 or the short-term credit ratings fall below A–1+/P–1. On April 3, 2012, following the Moody’s downgrade of GECC’s long-term credit ratings to A1, $1,120 million of these GICs became redeemable by the holders. During the second and third quarters of 2012, holders of $386 million in principal amount of GICs redeemed their holdings and GECC made related cash payments. The remaining outstanding GICs will continue to be subject to the existing terms and maturities of their respective contracts. Following the redemption period, if the long-term credit ratings of GECC were to fall below AA-/A2, GECC could be required to provide up to $731 million as of September 30, 2012 to repay holders of certain GICs.
|
(c)
|
Included $8,061 million and $8,538 million of funding secured by real estate, aircraft and other collateral at September 30, 2012 and December 31, 2011, respectively, of which $3,260 million and $2,983 million is non-recourse to GECC at September 30, 2012 and December 31, 2011, respectively.
|
(d)
|
Entirely variable denomination floating-rate demand notes.
|
(e)
|
Included $300 million and $417 million of subordinated notes guaranteed by GE at September 30, 2012 and December 31, 2011, respectively, of which $117 million was included in current portion of long-term borrowings at December 31, 2011.
|
(f)
|
Subordinated debentures receive rating agency equity credit and were hedged at issuance to the U.S. dollar equivalent of $7,725 million.
|
(g)
|
Includes $2,865 million of subordinated debentures, which constitute the sole assets of wholly-owned trusts who have issued trust preferred securities. Obligations associated with these trusts are unconditionally guaranteed by GECC.
|
(h)
|
Included $1,942 million and $1,955 million of covered bonds at September 30, 2012 and December 31, 2011, respectively. If the short-term credit rating of GECC were reduced below A–1/P–1, GECC would be required to partially cash collateralize these bonds in an amount up to $711 million at September 30, 2012.
|
(i)
|
Included at September 30, 2012 and December 31, 2011, were $8,514 million and $10,714 million of current portion of long-term borrowings, respectively, and $22,657 million and $18,544 million of long-term borrowings, respectively. See Note 13.
|
(j)
|
Included $16,030 million and $16,281 million of deposits in non-U.S. banks at September 30, 2012 and December 31, 2011, respectively, and $18,538 million and $17,201 million of certificates of deposits with maturities greater than one year at September 30, 2012 and December 31, 2011, respectively.
|
September 30,
|
December 31,
|
||||
(In millions)
|
2012
|
2011
|
|||
Unrecognized tax benefits
|
$
|
3,211
|
$
|
2,932
|
|
Portion that, if recognized, would reduce tax expense and effective tax rate(a)
|
2,469
|
2,209
|
|||
Accrued interest on unrecognized tax benefits
|
602
|
579
|
|||
Accrued penalties on unrecognized tax benefits
|
79
|
65
|
|||
Reasonably possible reduction to the balance of unrecognized
|
|||||
tax benefits in succeeding 12 months
|
0-400
|
0-600
|
|||
Portion that, if recognized, would reduce tax expense and effective tax rate(a)
|
0-350
|
0-150
|
|||
(a)
|
Some portion of such reduction may be reported as discontinued operations.
|
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Beginning balance
|
$
|
759
|
$
|
1,201
|
$
|
690
|
$
|
1,164
|
|||
Net earnings
|
20
|
38
|
46
|
89
|
|||||||
Dividends
|
(12)
|
(4)
|
(17)
|
(17)
|
|||||||
AOCI and other
|
(56)
|
(30)
|
(8)
|
(31)
|
|||||||
Ending balance
|
$
|
711
|
$
|
1,205
|
$
|
711
|
$
|
1,205
|
|||
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Interest on loans
|
$
|
4,708
|
$
|
5,038
|
$
|
14,328
|
$
|
15,195
|
|||
Equipment leased to others
|
2,625
|
2,855
|
8,020
|
8,529
|
|||||||
Fees
|
1,173
|
1,227
|
3,493
|
3,531
|
|||||||
Investment income
|
636
|
583
|
1,971
|
2,004
|
|||||||
Financing leases
|
392
|
554
|
1,455
|
1,837
|
|||||||
Associated companies(a)(b)
|
451
|
389
|
1,146
|
1,997
|
|||||||
Premiums earned by insurance activities
|
433
|
465
|
1,294
|
1,437
|
|||||||
Real estate investments
|
464
|
379
|
1,202
|
1,211
|
|||||||
Other items
|
453
|
493
|
1,270
|
1,634
|
|||||||
Total
|
$
|
11,335
|
$
|
11,983
|
$
|
34,179
|
$
|
37,375
|
|||
(a)
|
(b)
|
Aggregate summarized financial information for significant associated companies assuming a 100% ownership interest included total assets at September 30, 2012 and December 31, 2011 of $113,336 million and $104,554 million, respectively. Assets were primarily financing receivables of $61,946 million and $57,477 million at September 30, 2012 and December 31, 2011, respectively. Total liabilities were $80,802 million and $77,208 million, consisted primarily of bank deposits of $24,957 million and $20,980 million at September 30, 2012 and December 31, 2011, respectively, and debt of $43,783 million and $46,170 million at September 30, 2012 and December 31, 2011, respectively. Revenues in the third quarters of 2012 and 2011 totaled $4,324 million and $4,389 million, respectively, and net earnings in the third quarters of 2012 and 2011 totaled $954 million and $607 million, respectively. Revenues for the nine months ended September 30, 2012 and 2011 totaled $13,515 million and $12,056 million, respectively, and net earnings for the nine months ended September 30, 2012 and 2011 totaled $2,255 and $1,695 million, respectively.
|
(In millions)
|
Netting
|
|||||||||||||
Level 1
|
(a)
|
Level 2
|
(a)
|
Level 3
|
adjustment
|
(b)
|
Net balance
|
|||||||
September 30, 2012
|
||||||||||||||
Assets
|
||||||||||||||
Investment securities
|
||||||||||||||
Debt
|
||||||||||||||
U.S. corporate
|
$
|
–
|
$
|
20,601
|
$
|
3,578
|
$
|
–
|
$
|
24,179
|
||||
State and municipal
|
–
|
4,338
|
153
|
–
|
4,491
|
|||||||||
Residential mortgage-backed
|
–
|
2,390
|
34
|
–
|
2,424
|
|||||||||
Commercial mortgage-backed
|
–
|
3,073
|
6
|
–
|
3,079
|
|||||||||
Asset-backed(c)
|
–
|
726
|
4,819
|
–
|
5,545
|
|||||||||
Corporate - non-U.S.
|
70
|
1,214
|
1,295
|
–
|
2,579
|
|||||||||
Government - non-U.S.
|
895
|
1,021
|
41
|
–
|
1,957
|
|||||||||
U.S. government and federal agency
|
–
|
3,309
|
267
|
–
|
3,576
|
|||||||||
Retained interests
|
–
|
–
|
29
|
–
|
29
|
|||||||||
Equity
|
||||||||||||||
Available-for-sale
|
547
|
15
|
11
|
–
|
573
|
|||||||||
Trading
|
263
|
–
|
–
|
–
|
263
|
|||||||||
Derivatives(d)
|
–
|
11,876
|
155
|
(7,133)
|
4,898
|
|||||||||
Other(e)
|
–
|
–
|
416
|
–
|
416
|
|||||||||
Total
|
$
|
1,775
|
$
|
48,563
|
$
|
10,804
|
$
|
(7,133)
|
$
|
54,009
|
||||
Liabilities
|
||||||||||||||
Derivatives
|
$
|
–
|
$
|
4,491
|
$
|
14
|
$
|
(3,883)
|
$
|
622
|
||||
Other
|
–
|
24
|
–
|
–
|
24
|
|||||||||
Total
|
$
|
–
|
$
|
4,515
|
$
|
14
|
$
|
(3,883)
|
$
|
646
|
||||
December 31, 2011
|
||||||||||||||
Assets
|
||||||||||||||
Investment securities
|
||||||||||||||
Debt
|
||||||||||||||
U.S. corporate
|
$
|
–
|
$
|
20,535
|
$
|
3,235
|
$
|
–
|
$
|
23,770
|
||||
State and municipal
|
–
|
3,157
|
77
|
–
|
3,234
|
|||||||||
Residential mortgage-backed
|
–
|
2,568
|
41
|
–
|
2,609
|
|||||||||
Commercial mortgage-backed
|
–
|
2,824
|
4
|
–
|
2,828
|
|||||||||
Asset-backed(c)
|
–
|
930
|
4,040
|
–
|
4,970
|
|||||||||
Corporate - non-U.S.
|
71
|
1,058
|
1,204
|
–
|
2,333
|
|||||||||
Government - non-U.S.
|
1,003
|
1,444
|
84
|
–
|
2,531
|
|||||||||
U.S. government and federal agency
|
–
|
3,805
|
253
|
–
|
4,058
|
|||||||||
Retained interests
|
–
|
–
|
35
|
–
|
35
|
|||||||||
Equity
|
||||||||||||||
Available-for-sale
|
715
|
18
|
17
|
–
|
750
|
|||||||||
Trading
|
241
|
–
|
–
|
–
|
241
|
|||||||||
Derivatives(d)
|
–
|
14,830
|
160
|
(5,319)
|
9,671
|
|||||||||
Other(e)
|
–
|
–
|
388
|
–
|
388
|
|||||||||
Total
|
$
|
2,030
|
$
|
51,169
|
$
|
9,538
|
$
|
(5,319)
|
$
|
57,418
|
||||
Liabilities
|
||||||||||||||
Derivatives
|
$
|
–
|
$
|
4,503
|
$
|
20
|
$
|
(4,025)
|
$
|
498
|
||||
Other
|
–
|
25
|
–
|
–
|
25
|
|||||||||
Total
|
$
|
–
|
$
|
4,528
|
$
|
20
|
$
|
(4,025)
|
$
|
523
|
||||
(a)
|
There were no securities transferred between Level 1 and Level 2 during the nine months ended September 30, 2012.
|
(b)
|
The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists and when collateral is posted to us.
|
(c)
|
Includes investments in our CLL business in asset-backed securities collateralized by senior secured loans of high-quality, middle-market companies in a variety of industries.
|
(d)
|
The fair value of derivatives included an adjustment for non-performance risk. The cumulative adjustment was a loss of $21 million and $11 million at September 30, 2012 and December 31, 2011, respectively. See Note 11 for additional information on the composition of our derivative portfolio.
|
(e)
|
Included private equity investments and loans designated under the fair value option.
|
Net
|
|||||||||||||||||||||||||||||||
(In millions)
|
change in
|
||||||||||||||||||||||||||||||
Net realized/
|
unrealized
|
||||||||||||||||||||||||||||||
Net
|
unrealized
|
gains
|
|||||||||||||||||||||||||||||
realized/
|
gains (losses)
|
(losses)
|
|||||||||||||||||||||||||||||
unrealized
|
included in
|
relating to
|
|||||||||||||||||||||||||||||
gains
|
accumulated
|
instruments
|
|||||||||||||||||||||||||||||
Balance at
|
(losses)
|
other
|
Transfers
|
Transfers
|
Balance at
|
still held at
|
|||||||||||||||||||||||||
July 1,
|
included in
|
comprehensive
|
into
|
out of
|
September 30,
|
September 30,
|
|||||||||||||||||||||||||
2012
|
earnings
|
(a)
|
income
|
Purchases
|
Sales
|
Settlements
|
Level 3
|
(b)
|
Level 3
|
(b)
|
2012
|
2012
|
(c)
|
||||||||||||||||||
Investment securities
|
|||||||||||||||||||||||||||||||
Debt
|
|||||||||||||||||||||||||||||||
U.S. corporate
|
$
|
3,372
|
$
|
10
|
$
|
32
|
$
|
70
|
$
|
(34)
|
$
|
(16)
|
$
|
144
|
$
|
–
|
$
|
3,578
|
$
|
–
|
|||||||||||
State and municipal
|
81
|
–
|
8
|
12
|
–
|
(1)
|
78
|
(25)
|
153
|
–
|
|||||||||||||||||||||
Residential
|
|||||||||||||||||||||||||||||||
mortgage-backed
|
97
|
–
|
(2)
|
1
|
–
|
–
|
5
|
(67)
|
34
|
–
|
|||||||||||||||||||||
Commercial
|
|||||||||||||||||||||||||||||||
mortgage-backed
|
–
|
–
|
–
|
–
|
–
|
–
|
6
|
–
|
6
|
–
|
|||||||||||||||||||||
Asset-backed
|
4,304
|
(3)
|
90
|
483
|
(58)
|
5
|
4
|
(6)
|
4,819
|
–
|
|||||||||||||||||||||
Corporate – non-U.S.
|
1,363
|
(7)
|
20
|
18
|
(30)
|
(59)
|
–
|
(10)
|
1,295
|
–
|
|||||||||||||||||||||
Government
|
|||||||||||||||||||||||||||||||
– non-U.S.
|
51
|
–
|
2
|
–
|
–
|
(12)
|
–
|
–
|
41
|
–
|
|||||||||||||||||||||
U.S. government and
|
|||||||||||||||||||||||||||||||
federal agency
|
261
|
–
|
6
|
–
|
–
|
–
|
–
|
–
|
267
|
–
|
|||||||||||||||||||||
Retained interests
|
31
|
1
|
–
|
3
|
(3)
|
(3)
|
–
|
–
|
29
|
–
|
|||||||||||||||||||||
Equity
|
|||||||||||||||||||||||||||||||
Available-for-sale
|
14
|
–
|
–
|
–
|
–
|
(1)
|
1
|
(3)
|
11
|
–
|
|||||||||||||||||||||
Derivatives(d)(e)
|
136
|
15
|
–
|
(8)
|
3
|
(1)
|
–
|
–
|
145
|
9
|
|||||||||||||||||||||
Other
|
409
|
(1)
|
9
|
54
|
(55)
|
–
|
–
|
–
|
416
|
(1)
|
|||||||||||||||||||||
Total
|
$
|
10,119
|
$
|
15
|
$
|
165
|
$
|
633
|
$
|
(177)
|
$
|
(88)
|
$
|
238
|
$
|
(111)
|
$
|
10,794
|
$
|
8
|
|||||||||||
(a)
|
Earnings effects are primarily included in the “Revenues from services” and “Interest” captions in the Condensed Statement of Earnings.
|
(b)
|
Transfers in and out of Level 3 are considered to occur at the beginning of the period. Transfers out of Level 3 were a result of increased use of quotes from independent pricing vendors based on recent trading activity.
|
(c)
|
Represented the amount of unrealized gains or losses for the period included in earnings.
|
(d)
|
Represented derivative assets net of derivative liabilities and included cash accruals of $4 million not reflected in the fair value hierarchy table.
|
(e)
|
Gains (losses) included in net realized/unrealized gains (losses) included in earnings were offset by the earnings effects from the underlying items that were economically hedged. See Note 11.
|
Net
|
|||||||||||||||||||||||||||||||
(In millions)
|
change in
|
||||||||||||||||||||||||||||||
Net realized/
|
unrealized
|
||||||||||||||||||||||||||||||
Net
|
unrealized
|
gains
|
|||||||||||||||||||||||||||||
realized/
|
gains (losses)
|
(losses)
|
|||||||||||||||||||||||||||||
unrealized
|
included in
|
relating to
|
|||||||||||||||||||||||||||||
gains
|
accumulated
|
instruments
|
|||||||||||||||||||||||||||||
Balance at
|
(losses)
|
other
|
Transfers
|
Transfers
|
Balance at
|
still held at
|
|||||||||||||||||||||||||
July 1,
|
included in
|
comprehensive
|
into
|
out of
|
September 30,
|
September 30,
|
|||||||||||||||||||||||||
2011
|
earnings
|
(a)
|
income
|
Purchases
|
Sales
|
Settlements
|
Level 3
|
(b)
|
Level 3
|
(b)
|
2011
|
2011
|
(c)
|
||||||||||||||||||
Investment securities
|
|||||||||||||||||||||||||||||||
Debt
|
|||||||||||||||||||||||||||||||
U.S. corporate
|
$
|
3,096
|
$
|
(22)
|
$
|
(32)
|
$
|
530
|
$
|
(25)
|
$
|
2
|
$
|
120
|
$
|
(2)
|
$
|
3,667
|
$
|
–
|
|||||||||||
State and municipal
|
209
|
–
|
4
|
–
|
–
|
(4)
|
–
|
(120)
|
89
|
–
|
|||||||||||||||||||||
Residential
|
|||||||||||||||||||||||||||||||
mortgage-backed
|
45
|
–
|
(1)
|
–
|
–
|
–
|
–
|
–
|
44
|
–
|
|||||||||||||||||||||
Commercial
|
|||||||||||||||||||||||||||||||
mortgage-backed
|
7
|
–
|
1
|
–
|
–
|
–
|
–
|
–
|
8
|
–
|
|||||||||||||||||||||
Asset-backed
|
3,132
|
–
|
(65)
|
269
|
(14)
|
–
|
–
|
(417)
|
2,905
|
–
|
|||||||||||||||||||||
Corporate – non-U.S.
|
1,537
|
1
|
(55)
|
–
|
(26)
|
(14)
|
–
|
(4)
|
1,439
|
–
|
|||||||||||||||||||||
Government
|
|||||||||||||||||||||||||||||||
– non-U.S.
|
274
|
(1)
|
(22)
|
14
|
–
|
(13)
|
–
|
(140)
|
112
|
–
|
|||||||||||||||||||||
U.S. government and
|
|||||||||||||||||||||||||||||||
federal agency
|
224
|
–
|
32
|
–
|
–
|
–
|
–
|
–
|
256
|
–
|
|||||||||||||||||||||
Retained interests
|
45
|
(1)
|
(6)
|
1
|
(1)
|
(1)
|
–
|
–
|
37
|
–
|
|||||||||||||||||||||
Equity
|
|||||||||||||||||||||||||||||||
Available-for-sale
|
22
|
–
|
(1)
|
–
|
–
|
–
|
3
|
–
|
24
|
–
|
|||||||||||||||||||||
Derivatives(d)(e)
|
111
|
31
|
–
|
(3)
|
–
|
(5)
|
–
|
–
|
134
|
35
|
|||||||||||||||||||||
Other
|
595
|
(1)
|
(14)
|
25
|
(95)
|
(1)
|
–
|
–
|
509
|
(1)
|
|||||||||||||||||||||
Total
|
$
|
9,297
|
$
|
7
|
$
|
(159)
|
$
|
836
|
$
|
(161)
|
$
|
(36)
|
$
|
123
|
$
|
(683)
|
$
|
9,224
|
$
|
34
|
|||||||||||
(a)
|
(b)
|
Transfers in and out of Level 3 are considered to occur at the beginning of the period. Transfers out of Level 3 were a result of increased use of quotes from independent pricing vendors based on recent trading activity.
|
(c)
|
Represented the amount of unrealized gains or losses for the period included in earnings.
|
(d)
|
Represented derivative assets net of derivative liabilities and included cash accruals of $3 million not reflected in the fair value hierarchy table.
|
(e)
|
Gains (losses) included in net realized/unrealized gains (losses) included in earnings were offset by the earnings effects from the underlying items that were economically hedged. See Note 11.
|
Net
|
|||||||||||||||||||||||||||||||
(In millions)
|
change in
|
||||||||||||||||||||||||||||||
Net realized/
|
unrealized
|
||||||||||||||||||||||||||||||
Net
|
unrealized
|
gains
|
|||||||||||||||||||||||||||||
realized/
|
gains (losses)
|
(losses)
|
|||||||||||||||||||||||||||||
unrealized
|
included in
|
relating to
|
|||||||||||||||||||||||||||||
gains
|
accumulated
|
instruments
|
|||||||||||||||||||||||||||||
Balance at
|
(losses)
|
other
|
Transfers
|
Transfers
|
Balance at
|
still held at
|
|||||||||||||||||||||||||
January 1,
|
included in
|
comprehensive
|
into
|
out of
|
September 30,
|
September 30,
|
|||||||||||||||||||||||||
2012
|
earnings
|
(a)
|
income
|
Purchases
|
Sales
|
Settlements
|
Level 3
|
(b)
|
Level 3
|
(b)
|
2012
|
2012
|
(c)
|
||||||||||||||||||
Investment securities
|
|||||||||||||||||||||||||||||||
Debt
|
|||||||||||||||||||||||||||||||
U.S. corporate
|
$
|
3,235
|
$
|
69
|
$
|
(2)
|
$
|
202
|
$
|
(105)
|
$
|
(63)
|
$
|
260
|
$
|
(18)
|
$
|
3,578
|
$
|
–
|
|||||||||||
State and municipal
|
77
|
–
|
11
|
13
|
–
|
(1)
|
78
|
(25)
|
153
|
–
|
|||||||||||||||||||||
Residential
|
|||||||||||||||||||||||||||||||
mortgage-backed
|
41
|
(3)
|
1
|
1
|
–
|
(3)
|
74
|
(77)
|
34
|
–
|
|||||||||||||||||||||
Commercial
|
|||||||||||||||||||||||||||||||
mortgage-backed
|
4
|
–
|
–
|
–
|
(1)
|
–
|
6
|
(3)
|
6
|
–
|
|||||||||||||||||||||
Asset-backed
|
4,040
|
–
|
43
|
881
|
(164)
|
5
|
20
|
(6)
|
4,819
|
–
|
|||||||||||||||||||||
Corporate – non-U.S.
|
1,204
|
(19)
|
17
|
334
|
(30)
|
(137)
|
23
|
(97)
|
1,295
|
–
|
|||||||||||||||||||||
Government
|
|||||||||||||||||||||||||||||||
– non-U.S.
|
84
|
(34)
|
37
|
65
|
(72)
|
(39)
|
–
|
–
|
41
|
–
|
|||||||||||||||||||||
U.S. government and
|
|||||||||||||||||||||||||||||||
federal agency
|
253
|
–
|
14
|
–
|
–
|
–
|
–
|
–
|
267
|
–
|
|||||||||||||||||||||
Retained interests
|
35
|
1
|
(8)
|
12
|
(6)
|
(5)
|
–
|
–
|
29
|
–
|
|||||||||||||||||||||
Equity
|
|||||||||||||||||||||||||||||||
Available-for-sale
|
17
|
–
|
(2)
|
3
|
(4)
|
(1)
|
1
|
(3)
|
11
|
–
|
|||||||||||||||||||||
Derivatives(d)(e)
|
141
|
11
|
(1)
|
12
|
–
|
(14)
|
–
|
(4)
|
145
|
9
|
|||||||||||||||||||||
Other
|
388
|
3
|
(4)
|
88
|
(59)
|
–
|
–
|
–
|
416
|
1
|
|||||||||||||||||||||
Total
|
$
|
9,519
|
$
|
28
|
$
|
106
|
$
|
1,611
|
$
|
(441)
|
$
|
(258)
|
$
|
462
|
$
|
(233)
|
$
|
10,794
|
$
|
10
|
|||||||||||
(a)
|
Earnings effects are primarily included in the “Revenues from services” and “Interest” captions in the Condensed Statement of Earnings.
|
(b)
|
Transfers in and out of Level 3 are considered to occur at the beginning of the period. Transfers out of Level 3 were a result of increased use of quotes from independent pricing vendors based on recent trading activity.
|
(c)
|
Represented the amount of unrealized gains or losses for the period included in earnings.
|
(d)
|
Represented derivative assets net of derivative liabilities and included cash accruals of $4 million not reflected in the fair value hierarchy table.
|
(e)
|
Gains (losses) included in net realized/unrealized gains (losses) included in earnings were offset by the earnings effects from the underlying items that were economically hedged. See Note 11.
|
Net
|
|||||||||||||||||||||||||||||||
(In millions)
|
change in
|
||||||||||||||||||||||||||||||
Net realized/
|
unrealized
|
||||||||||||||||||||||||||||||
Net
|
unrealized
|
gains
|
|||||||||||||||||||||||||||||
realized/
|
gains (losses)
|
(losses)
|
|||||||||||||||||||||||||||||
unrealized
|
included in
|
relating to
|
|||||||||||||||||||||||||||||
gains
|
accumulated
|
instruments
|
|||||||||||||||||||||||||||||
Balance at
|
(losses)
|
other
|
Transfers
|
Transfers
|
Balance at
|
still held at
|
|||||||||||||||||||||||||
January 1,
|
included in
|
comprehensive
|
into
|
out of
|
September 30,
|
September 30,
|
|||||||||||||||||||||||||
2011
|
earnings
|
(a)
|
income
|
Purchases
|
Sales
|
Settlements
|
Level 3
|
(b)
|
Level 3
|
(b)
|
2011
|
2011
|
(c)
|
||||||||||||||||||
Investment securities
|
|||||||||||||||||||||||||||||||
Debt
|
|||||||||||||||||||||||||||||||
U.S. corporate
|
$
|
3,198
|
$
|
79
|
$
|
(52)
|
$
|
605
|
$
|
(180)
|
$
|
(101)
|
$
|
120
|
$
|
(2)
|
$
|
3,667
|
$
|
–
|
|||||||||||
State and municipal
|
225
|
–
|
(1)
|
4
|
–
|
(8)
|
–
|
(131)
|
89
|
–
|
|||||||||||||||||||||
Residential
|
|||||||||||||||||||||||||||||||
mortgage-backed
|
66
|
–
|
–
|
2
|
(4)
|
(1)
|
71
|
(90)
|
44
|
–
|
|||||||||||||||||||||
Commercial
|
|||||||||||||||||||||||||||||||
mortgage-backed
|
49
|
–
|
2
|
6
|
–
|
–
|
3
|
(52)
|
8
|
–
|
|||||||||||||||||||||
Asset-backed
|
2,540
|
–
|
(10)
|
1,049
|
(166)
|
(11)
|
1
|
(498)
|
2,905
|
–
|
|||||||||||||||||||||
Corporate – non-U.S.
|
1,486
|
(27)
|
27
|
12
|
(54)
|
(74)
|
73
|
(4)
|
1,439
|
–
|
|||||||||||||||||||||
Government
|
|||||||||||||||||||||||||||||||
– non-U.S.
|
156
|
(17)
|
(8)
|
27
|
–
|
(13)
|
107
|
(140)
|
112
|
–
|
|||||||||||||||||||||
U.S. government and
|
|||||||||||||||||||||||||||||||
federal agency
|
210
|
–
|
46
|
–
|
–
|
–
|
–
|
–
|
256
|
–
|
|||||||||||||||||||||
Retained interests
|
39
|
(19)
|
24
|
1
|
(4)
|
(4)
|
–
|
–
|
37
|
–
|
|||||||||||||||||||||
Equity
|
|||||||||||||||||||||||||||||||
Available-for-sale
|
24
|
–
|
(1)
|
–
|
–
|
–
|
4
|
(3)
|
24
|
–
|
|||||||||||||||||||||
Derivatives(d)(e)
|
227
|
86
|
4
|
2
|
–
|
(191)
|
–
|
6
|
134
|
67
|
|||||||||||||||||||||
Other
|
450
|
2
|
14
|
144
|
(95)
|
(6)
|
–
|
–
|
509
|
–
|
|||||||||||||||||||||
Total
|
$
|
8,670
|
$
|
104
|
$
|
45
|
$
|
1,852
|
$
|
(503)
|
$
|
(409)
|
$
|
379
|
$
|
(914)
|
$
|
9,224
|
$
|
67
|
|||||||||||
(a)
|
Earnings effects are primarily included in the “Revenues from services” and “Interest” captions in the Condensed Statement of Earnings.
|
(b)
|
Transfers in and out of Level 3 are considered to occur at the beginning of the period. Transfers out of Level 3 were a result of increased use of quotes from independent pricing vendors based on recent trading activity.
|
(c)
|
Represented the amount of unrealized gains or losses for the period included in earnings.
|
(d)
|
Represented derivative assets net of derivative liabilities and included cash accruals of $3 million not reflected in the fair value hierarchy table.
|
(e)
|
Gains (losses) included in net realized/unrealized gains (losses) included in earnings were offset by the earnings effects from the underlying items that were economically hedged. See Note 11.
|
Remeasured during
|
Remeasured during
|
|||||||||||
the nine months ended
|
the year ended
|
|||||||||||
September 30, 2012
|
December 31, 2011
|
|||||||||||
(In millions)
|
Level 2
|
Level 3
|
Level 2
|
Level 3
|
||||||||
Financing receivables and loans held for sale
|
$
|
482
|
$
|
3,798
|
$
|
158
|
$
|
5,159
|
||||
Cost and equity method investments(a)
|
4
|
336
|
–
|
402
|
||||||||
Long-lived assets, including real estate
|
483
|
1,484
|
1,343
|
3,254
|
||||||||
Total
|
$
|
969
|
$
|
5,618
|
$
|
1,501
|
$
|
8,815
|
||||
(a)
|
Includes the fair value of private equity and real estate funds included in Level 3 of $82 million and $123 million at September 30, 2012 and December 31, 2011, respectively.
|
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Financing receivables and loans held for sale
|
$
|
(225)
|
$
|
(254)
|
$
|
(411)
|
$
|
(716)
|
|||
Cost and equity method investments(a)
|
(50)
|
(84)
|
(105)
|
(254)
|
|||||||
Long-lived assets, including real estate(b)
|
(271)
|
(367)
|
(473)
|
(1,262)
|
|||||||
Total
|
$
|
(546)
|
$
|
(705)
|
$
|
(989)
|
$
|
(2,232)
|
|||
(a)
|
Includes fair value adjustments associated with private equity and real estate funds of $(1) million and $(3) million in the three months ended September 30, 2012 and 2011, respectively, and $(3) million and $(16) million in the nine months ended September 30, 2012 and 2011, respectively.
|
(b)
|
Includes impairments related to real estate equity properties and investments recorded in operating and administrative expenses of $71 million and $223 million in the three months ended September 30, 2012 and 2011, respectively, and $126 million and $999 million in the nine months ended September 30, 2012 and 2011, respectively.
|
Fair value at
|
Range
|
||||||||
September 30,
|
Valuation
|
Unobservable
|
(weighted
|
||||||
(Dollars in millions)
|
2012
|
technique
|
inputs
|
average)
|
|||||
Recurring fair value measurements
|
|||||||||
Investment securities
|
|||||||||
Debt
|
|||||||||
U.S. corporate
|
$
|
1,579
|
Income approach
|
Discount rate
|
(a)
|
1.6%-28.8% (10.8%)
|
|||
Asset-backed
|
4,773
|
Income approach
|
Discount rate
|
(a)
|
1.3%-13.3% (3.5%)
|
||||
Corporate Non-U.S.
|
922
|
Income approach
|
Discount rate
|
(a)
|
0.2%-29.7% (12.2%)
|
||||
Other financial assets
|
398
|
Market comparables
|
Weighted average
|
9.2%-10.9% (9.3%)
|
|||||
cost of capital
|
|||||||||
Non-recurring fair value measurements
|
|||||||||
Financing receivables and loans held for sale
|
$
|
2,382
|
Income approach
|
Capitalization rate
|
(b)
|
5.4%-27.9% (8.4%)
|
|||
225
|
Business enterprise
|
EBITDA multiple
|
4.0X-6.9X (4.6X)
|
||||||
value
|
|||||||||
Cost and equity method investments
|
99
|
Income approach
|
Capitalization rate
|
(b)
|
8.6%-12.8% (9.2%)
|
||||
Long-lived assets, including real estate
|
764
|
Income approach
|
Capitalization rate
|
(b)
|
4.8%-14.6% (8.2%)
|
||||
(a)
|
Discount rates are determined based on inputs that market participants would use when pricing investments, including credit and liquidity risk. An increase in the discount rate would result in a decrease in the fair value.
|
(b)
|
Represents the rate of return on net operating income which is considered acceptable for an investor and is used to determine a property’s capitalized value. An increase in the capitalization rate would result in a decrease in the fair value.
|
September 30, 2012
|
December 31, 2011
|
||||||||||||||||
Assets (liabilities)
|
Assets (liabilities)
|
||||||||||||||||
Notional
|
Carrying
|
Estimated
|
Notional
|
Carrying
|
Estimated
|
||||||||||||
(In millions)
|
amount
|
amount (net)
|
fair value
|
amount
|
amount (net)
|
fair value
|
|||||||||||
Assets
|
|||||||||||||||||
Loans
|
(a)
|
$
|
237,565
|
$
|
239,198
|
(a)
|
|
$
|
250,999
|
$
|
251,433
|
||||||
Other commercial mortgages
|
(a)
|
1,616
|
1,692
|
(a)
|
|
|
1,494
|
1,537
|
|||||||||
Loans held for sale
|
(a)
|
494
|
501
|
(a)
|
496
|
497
|
|||||||||||
Other financial instruments(c)
|
(a)
|
2,001
|
2,450
|
(a)
|
2,071
|
2,534
|
|||||||||||
Liabilities
|
|
|
|||||||||||||||
Borrowings and bank
|
|||||||||||||||||
deposits(b)(d)
|
(a)
|
(420,356)
|
(436,189)
|
(a)
|
(443,097)
|
(449,403)
|
|||||||||||
Investment contract benefits
|
(a)
|
(3,356)
|
(4,208)
|
(a)
|
|
|
(3,493)
|
(4,240)
|
|||||||||
Guaranteed investment contracts
|
(a)
|
(1,695)
|
(1,730)
|
(a)
|
(4,226)
|
(4,266)
|
|||||||||||
Insurance - credit life(e)
|
$
|
2,178
|
(114)
|
(97)
|
$
|
1,944
|
(106)
|
(88)
|
|||||||||
(a)
|
These financial instruments do not have notional amounts.
|
(b)
|
See Note 6.
|
(c)
|
Principally cost method investments.
|
(d)
|
Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at September 30, 2012 and December 31, 2011 would have been reduced by $8,357 million and $9,051 million, respectively.
|
(e)
|
Net of reinsurance of $2,000 million at both September 30, 2012 and December 31, 2011.
|
Notional amount at
|
|||||||||||
September 30,
|
December 31,
|
||||||||||
(In millions)
|
2012
|
2011
|
|||||||||
Ordinary course of business lending commitments(a)
|
$
|
3,205
|
$
|
3,756
|
|||||||
Unused revolving credit lines(b)
|
|||||||||||
Commercial(c)
|
16,912
|
18,757
|
|||||||||
Consumer - principally credit cards
|
268,759
|
257,646
|
|||||||||
(a)
|
(b)
|
Excluded inventory financing arrangements, which may be withdrawn at our option, of $13,540 million and $12,354 million as of September 30, 2012 and December 31, 2011, respectively.
|
(c)
|
Included commitments of $12,283 million and $14,057 million as of September 30, 2012 and December 31, 2011, respectively, associated with secured financing arrangements that could have increased to a maximum of $14,378 million and $17,344 million at September 30, 2012 and December 31, 2011, respectively, based on asset volume under the arrangement.
|
September 30, 2012
|
December 31, 2011
|
||||||||||
Fair value
|
Fair value
|
||||||||||
(In millions)
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
|||||||
Derivatives accounted for as hedges
|
|||||||||||
Interest rate contracts
|
$
|
8,967
|
$
|
768
|
$
|
9,445
|
$
|
1,049
|
|||
Currency exchange contracts
|
805
|
3,069
|
3,720
|
2,239
|
|||||||
Other contracts
|
–
|
–
|
–
|
–
|
|||||||
9,772
|
3,837
|
13,165
|
3,288
|
||||||||
Derivatives not accounted for as hedges
|
|||||||||||
Interest rate contracts
|
364
|
195
|
314
|
241
|
|||||||
Currency exchange contracts
|
1,830
|
454
|
1,440
|
972
|
|||||||
Other contracts
|
65
|
19
|
71
|
22
|
|||||||
2,259
|
668
|
1,825
|
1,235
|
||||||||
Netting adjustments(a)
|
(3,194)
|
(3,173)
|
(3,009)
|
(2,998)
|
|||||||
Cash collateral(b)(c)
|
(3,939)
|
(710)
|
(2,310)
|
(1,027)
|
|||||||
Total
|
$
|
4,898
|
$
|
622
|
$
|
9,671
|
$
|
498
|
|||
|
Derivatives are classified in the captions “Other assets” and “Other liabilities” in our financial statements.
|
(a)
|
The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts included fair value adjustments related to our own and counterparty non-performance risk. At September 30, 2012 and December 31, 2011, the cumulative adjustment for non-performance risk was a loss of $(21) million and $(11) million, respectively.
|
(b)
|
Excludes excess cash collateral received of $69 million and $579 million at September 30, 2012 and December 31, 2011, respectively. Excludes excess cash collateral posted of $13 million at September 30, 2012.
|
(c)
|
Excludes securities pledged to us as collateral of $5,953 million and $10,346 million at September 30, 2012 and December 31, 2011, respectively, which includes excess securities collateral of $327 million at September 30, 2012.
|
Three months ended September 30,
|
|||||||||||
2012
|
2011
|
||||||||||
(In millions)
|
Gain (loss)
|
Gain (loss)
|
Gain (loss)
|
Gain (loss)
|
|||||||
on hedging
|
on hedged
|
on hedging
|
on hedged
|
||||||||
derivatives
|
items
|
derivatives
|
items
|
||||||||
Interest rate contracts
|
$
|
441
|
$
|
(552)
|
$
|
5,708
|
$
|
(5,829)
|
|||
Currency exchange contracts
|
8
|
(10)
|
64
|
(74)
|
|||||||
Nine months ended September 30,
|
|||||||||||
2012
|
2011
|
||||||||||
(In millions)
|
Gain (loss)
|
Gain (loss)
|
Gain (loss)
|
Gain (loss)
|
|||||||
on hedging
|
on hedged
|
on hedging
|
on hedged
|
||||||||
derivatives
|
items
|
derivatives
|
items
|
||||||||
Interest rate contracts
|
$
|
1,226
|
$
|
(1,514)
|
$
|
5,318
|
$
|
(5,634)
|
|||
Currency exchange contracts
|
(204)
|
192
|
103
|
(121)
|
|||||||
Gain (loss) reclassified
|
|||||||||||
Gain (loss) recognized in AOCI
|
from AOCI into earnings
|
||||||||||
for the three months ended September 30,
|
for the three months ended September 30,
|
||||||||||
2012
|
2011
|
2012
|
2011
|
||||||||
(In millions)
|
|||||||||||
Cash flow hedges
|
|||||||||||
Interest rate contracts
|
$
|
(68)
|
$
|
(170)
|
$
|
(116)
|
$
|
(180)
|
|||
Currency exchange contracts
|
322
|
(583)
|
253
|
(569)
|
|||||||
Commodity contracts
|
–
|
–
|
–
|
–
|
|||||||
Total
|
$
|
254
|
$
|
(753)
|
$
|
137
|
$
|
(749)
|
|||
Gain (loss) reclassified
|
|||||||||||
Gain (loss) recognized in AOCI
|
from AOCI into earnings
|
||||||||||
for the nine months ended September 30,
|
for the nine months ended September 30,
|
||||||||||
2012
|
2011
|
2012
|
2011
|
||||||||
(In millions)
|
|||||||||||
Cash flow hedges
|
|||||||||||
Interest rate contracts
|
$
|
(147)
|
$
|
(287)
|
$
|
(380)
|
$
|
(656)
|
|||
Currency exchange contracts
|
(25)
|
79
|
(83)
|
295
|
|||||||
Commodity contracts
|
–
|
–
|
–
|
–
|
|||||||
Total
|
$
|
(172)
|
$
|
(208)
|
$
|
(463)
|
$
|
(361)
|
|||
Gain (loss) recognized
|
Gain (loss) reclassified
|
||||||||||
in CTA for the
|
from CTA for the
|
||||||||||
three months ended September 30,
|
three months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Net investment hedges
|
|||||||||||
Currency exchange contracts
|
$
|
(2,939)
|
$
|
1,948
|
$
|
39
|
$
|
(15)
|
|||
Gain (loss) recognized
|
Gain (loss) reclassified
|
||||||||||
in CTA for the
|
from CTA for the
|
||||||||||
nine months ended September 30,
|
nine months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Net investment hedges
|
|||||||||||
Currency exchange contracts
|
$
|
(2,588)
|
$
|
(1,458)
|
$
|
27
|
$
|
(713)
|
|||
Financing receivables
|
||||||||||||
September 30,
|
December 31,
|
|||||||||||
(In millions)
|
2012
|
2011
|
||||||||||
CLL
|
||||||||||||
Americas
|
$
|
74,488
|
$
|
80,505
|
||||||||
Europe
|
34,916
|
36,899
|
||||||||||
Asia
|
11,597
|
11,635
|
||||||||||
Other
|
659
|
436
|
||||||||||
Total CLL
|
121,660
|
129,475
|
||||||||||
Energy Financial Services
|
4,989
|
5,912
|
||||||||||
GECAS
|
11,628
|
11,901
|
||||||||||
Other
|
537
|
1,282
|
||||||||||
Total Commercial financing receivables, before allowance for losses
|
$
|
138,814
|
$
|
148,570
|
||||||||
Non-impaired financing receivables
|
$
|
132,900
|
$
|
142,908
|
||||||||
General reserves
|
569
|
718
|
||||||||||
Impaired loans
|
5,914
|
5,662
|
||||||||||
Specific reserves
|
680
|
812
|
||||||||||
September 30, 2012
|
December 31, 2011
|
|||||||||||
Over 30 days
|
Over 90 days
|
Over 30 days
|
Over 90 days
|
|||||||||
past due
|
past due
|
past due
|
past due
|
|||||||||
CLL
|
||||||||||||
Americas
|
1.1
|
%
|
0.6
|
%
|
1.3
|
%
|
0.8
|
%
|
||||
Europe
|
4.4
|
2.6
|
3.8
|
2.1
|
||||||||
Asia
|
0.9
|
0.7
|
1.3
|
1.0
|
||||||||
Other
|
–
|
–
|
2.0
|
0.1
|
||||||||
Total CLL
|
2.0
|
1.2
|
2.0
|
1.2
|
||||||||
Energy Financial Services
|
–
|
–
|
0.3
|
0.3
|
||||||||
GECAS
|
0.1
|
–
|
–
|
–
|
||||||||
Other
|
3.0
|
3.0
|
3.7
|
3.5
|
||||||||
Total
|
1.8
|
1.1
|
1.8
|
1.1
|
||||||||
Nonaccrual financing
|
Nonearning financing
|
|||||||||||
receivables
|
receivables
|
|||||||||||
September 30,
|
December 31,
|
September 30,
|
December 31,
|
|||||||||
(Dollars in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||
CLL
|
||||||||||||
Americas
|
$
|
2,339
|
$
|
2,417
|
$
|
1,600
|
$
|
1,862
|
||||
Europe
|
2,011
|
1,599
|
1,533
|
1,167
|
||||||||
Asia
|
333
|
428
|
206
|
269
|
||||||||
Other
|
53
|
68
|
53
|
11
|
||||||||
Total CLL
|
4,736
|
4,512
|
3,392
|
3,309
|
||||||||
Energy Financial Services
|
51
|
22
|
2
|
22
|
||||||||
GECAS
|
304
|
69
|
50
|
55
|
||||||||
Other
|
33
|
115
|
16
|
65
|
||||||||
Total
|
$
|
5,124
|
$
|
4,718
|
$
|
3,460
|
$
|
3,451
|
||||
Allowance for losses percentage
|
24.4
|
%
|
32.4
|
%
|
36.1
|
%
|
44.3
|
%
|
||||
With no specific allowance
|
With a specific allowance
|
|||||||||||||||||||
Recorded
|
Unpaid
|
Average
|
Recorded
|
Unpaid
|
Average
|
|||||||||||||||
investment
|
principal
|
investment in
|
investment
|
principal
|
Associated
|
investment in
|
||||||||||||||
(In millions)
|
in loans
|
balance
|
loans
|
in loans
|
balance
|
allowance
|
loans
|
|||||||||||||
September 30, 2012
|
||||||||||||||||||||
CLL
|
||||||||||||||||||||
Americas
|
$
|
2,702
|
$
|
2,972
|
$
|
2,547
|
$
|
902
|
$
|
1,145
|
$
|
246
|
$
|
1,095
|
||||||
Europe
|
1,087
|
1,676
|
979
|
913
|
1,282
|
406
|
845
|
|||||||||||||
Asia
|
52
|
55
|
62
|
126
|
152
|
19
|
140
|
|||||||||||||
Other
|
44
|
56
|
53
|
9
|
13
|
2
|
7
|
|||||||||||||
Total CLL
|
3,885
|
4,759
|
3,641
|
1,950
|
2,592
|
673
|
2,087
|
|||||||||||||
Energy Financial Services
|
2
|
2
|
3
|
–
|
–
|
–
|
9
|
|||||||||||||
GECAS
|
41
|
41
|
21
|
3
|
3
|
–
|
6
|
|||||||||||||
Other
|
13
|
20
|
28
|
20
|
20
|
7
|
48
|
|||||||||||||
Total
|
$
|
3,941
|
$
|
4,822
|
$
|
3,693
|
$
|
1,973
|
$
|
2,615
|
$
|
680
|
$
|
2,150
|
||||||
December 31, 2011
|
||||||||||||||||||||
CLL
|
||||||||||||||||||||
Americas
|
$
|
2,136
|
$
|
2,219
|
$
|
2,128
|
$
|
1,367
|
$
|
1,415
|
$
|
425
|
$
|
1,468
|
||||||
Europe
|
936
|
1,060
|
1,001
|
730
|
717
|
263
|
602
|
|||||||||||||
Asia
|
85
|
83
|
94
|
156
|
128
|
84
|
214
|
|||||||||||||
Other
|
54
|
58
|
13
|
11
|
11
|
2
|
5
|
|||||||||||||
Total CLL
|
3,211
|
3,420
|
3,236
|
2,264
|
2,271
|
774
|
2,289
|
|||||||||||||
Energy Financial Services
|
4
|
4
|
20
|
18
|
18
|
9
|
87
|
|||||||||||||
GECAS
|
28
|
28
|
59
|
–
|
–
|
–
|
11
|
|||||||||||||
Other
|
62
|
63
|
67
|
75
|
75
|
29
|
97
|
|||||||||||||
Total
|
$
|
3,305
|
$
|
3,515
|
$
|
3,382
|
$
|
2,357
|
$
|
2,364
|
$
|
812
|
$
|
2,484
|
||||||
Secured
|
|||||||||||
(In millions)
|
A
|
B
|
C
|
Total
|
|||||||
September 30, 2012
|
|||||||||||
CLL
|
|||||||||||
Americas
|
$
|
69,945
|
$
|
1,727
|
$
|
2,816
|
$
|
74,488
|
|||
Europe
|
31,486
|
1,046
|
1,359
|
33,891
|
|||||||
Asia
|
10,884
|
111
|
412
|
11,407
|
|||||||
Other
|
197
|
44
|
68
|
309
|
|||||||
Total CLL
|
112,512
|
2,928
|
4,655
|
120,095
|
|||||||
Energy Financial Services
|
4,771
|
47
|
49
|
4,867
|
|||||||
GECAS
|
11,441
|
176
|
11
|
11,628
|
|||||||
Other
|
537
|
–
|
–
|
537
|
|||||||
Total
|
$
|
129,261
|
$
|
3,151
|
$
|
4,715
|
$
|
137,127
|
December 31, 2011
|
|||||||||||
CLL
|
|||||||||||
Americas
|
$
|
73,103
|
$
|
2,816
|
$
|
4,586
|
$
|
80,505
|
|||
Europe
|
33,481
|
1,080
|
1,002
|
35,563
|
|||||||
Asia
|
10,644
|
116
|
685
|
11,445
|
|||||||
Other
|
345
|
–
|
91
|
436
|
|||||||
Total CLL
|
117,573
|
4,012
|
6,364
|
127,949
|
|||||||
Energy Financial Services
|
5,727
|
24
|
18
|
5,769
|
|||||||
GECAS
|
10,881
|
970
|
50
|
11,901
|
|||||||
Other
|
1,282
|
–
|
–
|
1,282
|
|||||||
Total
|
$
|
135,463
|
$
|
5,006
|
$
|
6,432
|
$
|
146,901
|
|||
Financing receivables
|
||||||||||||
September 30,
|
December 31,
|
|||||||||||
(In millions)
|
2012
|
2011
|
||||||||||
Debt
|
$
|
21,225
|
$
|
24,501
|
||||||||
Business Properties
|
5,069
|
8,248
|
||||||||||
Total Real Estate financing receivables, before allowance for losses
|
$
|
26,294
|
$
|
32,749
|
||||||||
Non-impaired financing receivables
|
$
|
18,817
|
$
|
24,002
|
||||||||
General reserves
|
178
|
267
|
||||||||||
Impaired loans
|
7,477
|
8,747
|
||||||||||
Specific reserves
|
558
|
822
|
||||||||||
September 30, 2012
|
December 31, 2011
|
|||||||||||
Over 30 days
|
Over 90 days
|
Over 30 days
|
Over 90 days
|
|||||||||
past due
|
past due
|
past due
|
past due
|
|||||||||
Debt
|
2.4
|
%
|
2.3
|
%
|
2.4
|
%
|
2.3
|
%
|
||||
Business Properties
|
4.7
|
4.5
|
3.9
|
3.0
|
||||||||
Total
|
2.8
|
2.8
|
2.8
|
2.5
|
Nonaccrual financing
|
Nonearning financing
|
|||||||||||
receivables
|
receivables
|
|||||||||||
September 30,
|
December 31,
|
September 30,
|
December 31,
|
|||||||||
(Dollars in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||
Debt
|
$
|
5,141
|
$
|
6,351
|
$
|
454
|
$
|
541
|
||||
Business Properties
|
492
|
598
|
228
|
249
|
||||||||
Total
|
$
|
5,633
|
$
|
6,949
|
$
|
682
|
$
|
790
|
||||
Allowance for losses percentage
|
13.1
|
%
|
15.7
|
%
|
107.9
|
%
|
137.8
|
%
|
||||
With no specific allowance
|
With a specific allowance
|
|||||||||||||||||||
Recorded
|
Unpaid
|
Average
|
Recorded
|
Unpaid
|
Average
|
|||||||||||||||
investment
|
principal
|
investment
|
investment
|
principal
|
Associated
|
investment
|
||||||||||||||
(In millions)
|
in loans
|
balance
|
in loans
|
in loans
|
balance
|
allowance
|
in loans
|
|||||||||||||
September 30, 2012
|
||||||||||||||||||||
Debt
|
$
|
3,684
|
$
|
3,930
|
$
|
3,645
|
$
|
3,312
|
$
|
3,606
|
$
|
472
|
$
|
3,798
|
||||||
Business Properties
|
198
|
198
|
198
|
283
|
283
|
86
|
341
|
|||||||||||||
Total
|
$
|
3,882
|
$
|
4,128
|
$
|
3,843
|
$
|
3,595
|
$
|
3,889
|
$
|
558
|
$
|
4,139
|
||||||
December 31, 2011
|
||||||||||||||||||||
Debt
|
$
|
3,558
|
$
|
3,614
|
$
|
3,568
|
$
|
4,560
|
$
|
4,652
|
$
|
717
|
$
|
5,435
|
||||||
Business Properties
|
232
|
232
|
215
|
397
|
397
|
105
|
460
|
|||||||||||||
Total
|
$
|
3,790
|
$
|
3,846
|
$
|
3,783
|
$
|
4,957
|
$
|
5,049
|
$
|
822
|
$
|
5,895
|
Loan-to-value ratio
|
|||||||||||||||||
September 30, 2012
|
December 31, 2011
|
||||||||||||||||
Less than
|
80% to
|
Greater than
|
Less than
|
80% to
|
Greater than
|
||||||||||||
(In millions)
|
80%
|
95%
|
95%
|
80%
|
95%
|
95%
|
|||||||||||
Debt
|
$
|
14,092
|
$
|
3,215
|
$
|
3,918
|
$
|
14,454
|
$
|
4,593
|
$
|
5,454
|
|||||
Internal Risk Rating
|
|||||||||||||||||
September 30, 2012
|
December 31, 2011
|
||||||||||||||||
(In millions)
|
A
|
B
|
C
|
A
|
B
|
C
|
|||||||||||
Business Properties
|
$
|
4,610
|
$
|
64
|
$
|
395
|
$
|
7,628
|
$
|
110
|
$
|
510
|
Financing receivables
|
||||||||||||
September 30,
|
December 31,
|
|||||||||||
(In millions)
|
2012
|
2011
|
||||||||||
Non-U.S. residential mortgages
|
$
|
33,855
|
$
|
35,550
|
||||||||
Non-U.S. installment and revolving credit
|
18,504
|
18,544
|
||||||||||
U.S. installment and revolving credit
|
46,939
|
46,689
|
||||||||||
Non-U.S. auto
|
4,601
|
5,691
|
||||||||||
Other
|
7,996
|
7,244
|
||||||||||
Total Consumer financing receivables, before allowance for losses
|
$
|
111,895
|
$
|
113,718
|
||||||||
Non-impaired financing receivables
|
$
|
108,745
|
$
|
110,825
|
||||||||
General reserves
|
2,737
|
2,891
|
||||||||||
Impaired loans
|
3,150
|
2,893
|
||||||||||
Specific reserves
|
658
|
680
|
||||||||||
September 30, 2012
|
December 31, 2011
|
|||||||||||
Over 30 days
|
Over 90 days
|
Over 30 days
|
Over 90 days
|
|||||||||
past due
|
past due(a)
|
past due
|
past due(a)
|
|||||||||
Non-U.S. residential mortgages
|
12.2
|
%
|
7.7
|
%
|
12.3
|
%
|
7.9
|
%
|
||||
Non-U.S. installment and revolving credit
|
3.9
|
1.2
|
4.1
|
1.2
|
||||||||
U.S. installment and revolving credit
|
4.8
|
2.0
|
5.0
|
2.2
|
||||||||
Non-U.S. auto
|
3.1
|
0.5
|
3.1
|
0.5
|
||||||||
Other
|
3.2
|
2.0
|
3.5
|
2.0
|
||||||||
Total
|
6.7
|
3.5
|
6.9
|
3.7
|
||||||||
(a)
|
Included $38 million and $45 million of loans at September 30, 2012 and December 31, 2011, respectively, which are over 90 days past due and accruing interest, mainly representing accretion on loans acquired at a discount.
|
Nonaccrual financing
|
Nonearning financing
|
|||||||||||
receivables
|
receivables
|
|||||||||||
September 30,
|
December 31,
|
September 30,
|
December 31,
|
|||||||||
(Dollars in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||
Non-U.S. residential mortgages
|
$
|
2,742
|
$
|
2,995
|
$
|
2,659
|
$
|
2,870
|
||||
Non-U.S. installment and revolving credit
|
234
|
321
|
234
|
263
|
||||||||
U.S. installment and revolving credit
|
896
|
990
|
896
|
990
|
||||||||
Non-U.S. auto
|
27
|
43
|
27
|
43
|
||||||||
Other
|
429
|
487
|
339
|
419
|
||||||||
Total
|
$
|
4,328
|
$
|
4,836
|
$
|
4,155
|
$
|
4,585
|
||||
Allowance for losses percentage
|
78.4
|
%
|
73.8
|
%
|
81.7
|
%
|
77.9
|
%
|
||||
Loan-to-value ratio
|
|||||||||||||||||
September 30, 2012
|
December 31, 2011
|
||||||||||||||||
80% or
|
Greater than
|
Greater than
|
80% or
|
Greater than
|
Greater than
|
||||||||||||
(In millions)
|
less
|
80% to 90%
|
90%
|
less
|
80% to 90%
|
90%
|
|||||||||||
Non-U.S. residential mortgages
|
$
|
18,799
|
$
|
5,847
|
$
|
9,209
|
$
|
19,834
|
$
|
6,087
|
$
|
9,629
|
Internal ratings translated to approximate credit bureau equivalent score
|
|||||||||||||||||
September 30, 2012
|
December 31, 2011
|
||||||||||||||||
681 or
|
615 to
|
614 or
|
681 or
|
615 to
|
614 or
|
||||||||||||
(In millions)
|
higher
|
680
|
less
|
higher
|
680
|
less
|
|||||||||||
Non-U.S. installment and
|
|||||||||||||||||
revolving credit
|
$
|
10,474
|
$
|
4,530
|
$
|
3,500
|
$
|
9,913
|
$
|
4,838
|
$
|
3,793
|
|||||
U.S. installment and
|
|||||||||||||||||
revolving credit
|
30,845
|
8,935
|
7,159
|
28,918
|
9,398
|
8,373
|
|||||||||||
Non-U.S. auto
|
3,363
|
750
|
488
|
3,927
|
1,092
|
672
|
·
|
Trinity comprises two consolidated entities that hold investment securities, the majority of which are investment grade, and were funded by the issuance of GICs. These entities were consolidated in 2003 and ceased issuing new investment contracts beginning in the first quarter of 2010. Since 2004, GECC has fully guaranteed repayment of these entities’ GIC obligations. These obligations included conditions under which certain GIC holders could require immediate repayment of their investment should the long-term credit ratings of GECC fall below AA-/Aa3 or the short-term credit ratings fall below A-1+/P-1. To the extent that amounts due were to exceed the ultimate value of proceeds realized from Trinity assets, GECC would be required to provide such excess amount. Following the April 3, 2012 Moody’s downgrade of GECC’s long-term credit ratings to A1, substantially all of these GICs became redeemable by the holders. In the second quarter of 2012, holders of $1,981 million of GICs redeemed their holdings. The redemption was funded primarily through advances from GECC. The remaining outstanding GICs will continue to be subject to the existing terms and maturities of their respective contracts. Following the redemption period, if the long-term credit ratings of GECC were to fall below AA-/A2 or the short-term credit ratings were to fall below A-1+/P-1, GECC could be required to provide up to $1,470 million as of September 30, 2012 to repay holders of Trinity GICs.
|
·
|
Consolidated Securitization Entities (CSEs) comprise primarily our previously unconsolidated QSPEs that were consolidated on January 1, 2010 in connection with our adoption of ASU 2009-16 & 17. These entities were created to facilitate securitization of financial assets and other forms of asset-backed financing which serve as an alternative funding source by providing access to the commercial paper and term markets. The securitization transactions executed with these entities are similar to those used by many financial institutions and substantially all are non-recourse. We provide servicing for substantially all of the assets in these entities.
|
|
The financing receivables in these entities have similar risks and characteristics to our other financing receivables and were underwritten to the same standard. Accordingly, the performance of these assets has been similar to our other financing receivables; however, the blended performance of the pools of receivables in these entities reflects the eligibility criteria that we apply to determine which receivables are selected for transfer. Contractually the cash flows from these financing receivables must first be used to pay third-party debt holders as well as other expenses of the entity. Excess cash flows are available to GECC. The creditors of these entities have no claim on other assets of GECC.
|
·
|
Other remaining assets and liabilities of consolidated VIEs relate primarily to three categories of entities: (1) joint ventures that lease light industrial equipment of $1,398 million of assets and $877 million of liabilities; (2) other entities that are involved in power generating and leasing activities of $2,426 million of assets and $610 million of liabilities; and (3) insurance entities that, among other lines of business, provide property and casualty and workers’ compensation coverage for GE of $1,211 million of assets and $621 million of liabilities.
|
Consolidated Securitization Entities
|
||||||||||||||||||||
Credit
|
Trade
|
|||||||||||||||||||
(In millions)
|
Trinity
|
(a)
|
Cards
|
(b)
|
Equipment
|
(b)
|
Real Estate
|
(c)
|
Receivables
|
Other
|
(d)
|
Total
|
||||||||
September 30, 2012
|
||||||||||||||||||||
Assets(e)
|
||||||||||||||||||||
Financing receivables, net
|
$
|
–
|
$
|
22,133
|
$
|
12,066
|
$
|
2,921
|
$
|
1,830
|
$
|
1,832
|
$
|
40,782
|
||||||
Investment securities
|
3,733
|
–
|
–
|
–
|
–
|
1,065
|
4,798
|
|||||||||||||
Other assets
|
80
|
28
|
332
|
134
|
–
|
3,479
|
4,053
|
|||||||||||||
Total
|
$
|
3,813
|
$
|
22,161
|
$
|
12,398
|
$
|
3,055
|
$
|
1,830
|
$
|
6,376
|
$
|
49,633
|
||||||
Liabilities(e)
|
||||||||||||||||||||
Borrowings
|
$
|
–
|
$
|
–
|
$
|
4
|
$
|
25
|
$
|
–
|
$
|
1,263
|
$
|
1,292
|
||||||
Non-recourse borrowings
|
–
|
16,050
|
9,705
|
2,936
|
1,579
|
–
|
30,270
|
|||||||||||||
Other liabilities
|
1,705
|
116
|
1
|
3
|
17
|
1,460
|
3,302
|
|||||||||||||
Total
|
$
|
1,705
|
$
|
16,166
|
$
|
9,710
|
$
|
2,964
|
$
|
1,596
|
$
|
2,723
|
$
|
34,864
|
||||||
December 31, 2011
|
||||||||||||||||||||
Assets(e)
|
||||||||||||||||||||
Financing receivables, net
|
$
|
–
|
$
|
19,229
|
$
|
10,523
|
$
|
3,521
|
$
|
1,614
|
$
|
2,973
|
$
|
37,860
|
||||||
Investment securities
|
4,289
|
–
|
–
|
–
|
–
|
1,031
|
5,320
|
|||||||||||||
Other assets
|
389
|
17
|
283
|
210
|
–
|
2,250
|
3,149
|
|||||||||||||
Total
|
$
|
4,678
|
$
|
19,246
|
$
|
10,806
|
$
|
3,731
|
$
|
1,614
|
$
|
6,254
|
$
|
46,329
|
||||||
Liabilities(e)
|
||||||||||||||||||||
Borrowings
|
$
|
–
|
$
|
–
|
$
|
2
|
$
|
25
|
$
|
–
|
$
|
821
|
$
|
848
|
||||||
Non-recourse borrowings
|
–
|
14,184
|
8,166
|
3,659
|
1,769
|
980
|
28,758
|
|||||||||||||
Other liabilities
|
4,456
|
37
|
–
|
19
|
23
|
1,312
|
5,847
|
|||||||||||||
Total
|
$
|
4,456
|
$
|
14,221
|
$
|
8,168
|
$
|
3,703
|
$
|
1,792
|
$
|
3,113
|
$
|
35,453
|
||||||
(a)
|
(b)
|
We provide servicing to the CSEs and are contractually permitted to commingle cash collected from customers on financing receivables sold to CSE investors with our own cash prior to payment to a CSE, provided our short-term credit rating does not fall below A-1/P-1. These CSEs also owe us amounts for purchased financial assets and scheduled interest and principal payments. At September 30, 2012, the amount of commingled cash owed to the CSEs and the amount owed to us by CSEs were $5,885 million and $5,751 million, respectively.
|
(c)
|
On October 1, 2012, we completed the sale of our Business Property business, which includes servicing rights for most of these CSEs. We will deconsolidate substantially all of these securitization entities in the fourth quarter of 2012 as we will no longer have the power to direct the activities of these entities.
|
(d)
|
Includes $1,519 million in other assets and $537 million of borrowings at September 30, 2012 due to the consolidation of an entity involved in power generating activities. This entity was previously subject to a leveraged lease and we consolidated this entity in March 2012 following the execution of an agreement that gave us the power to direct activities of this entity.
|
(e)
|
Asset amounts exclude intercompany receivables for cash collected on behalf of the entities by GE as servicer, which are eliminated in consolidation. Such receivables provide the cash to repay the entities’ liabilities. If these intercompany receivables were included in the table above, assets would be higher. In addition, other assets, borrowings and other liabilities exclude intercompany balances that are eliminated in consolidation.
|
September 30, 2012
|
December 31, 2011
|
||||||||||||||||
(In millions)
|
PTL
|
All other
|
Total
|
PTL
|
All other
|
Total
|
|||||||||||
Other assets and investment
|
|||||||||||||||||
securities
|
$
|
2,732
|
$
|
8,273
|
$
|
11,005
|
$
|
7,038
|
$
|
6,954
|
$
|
13,992
|
|||||
Financing receivables – net
|
–
|
3,171
|
3,171
|
–
|
2,507
|
2,507
|
|||||||||||
Total investments
|
2,732
|
11,444
|
14,176
|
7,038
|
9,461
|
16,499
|
|||||||||||
Contractual obligations to fund
|
|||||||||||||||||
investments or guarantees
|
159
|
2,314
|
2,473
|
600
|
2,253
|
2,853
|
|||||||||||
Revolving lines of credit
|
–
|
68
|
68
|
1,356
|
92
|
1,448
|
|||||||||||
Total
|
$
|
2,891
|
$
|
13,826
|
$
|
16,717
|
$
|
8,994
|
$
|
11,806
|
$
|
20,800
|
|||||
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Revenues
|
$
|
4,124
|
$
|
4,512
|
$
|
12,707
|
$
|
13,786
|
|||
Segment profit
|
$
|
568
|
$
|
688
|
$
|
1,879
|
$
|
1,943
|
|||
September 30,
|
December 31,
|
September 30,
|
|||||||||
(In millions)
|
2012
|
2011
|
2011
|
||||||||
Total assets
|
$
|
180,542
|
$
|
193,869
|
$
|
195,257
|
|||||
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Revenues
|
|||||||||||
Americas
|
$
|
2,641
|
$
|
2,624
|
$
|
7,989
|
$
|
8,082
|
|||
Europe
|
795
|
940
|
2,452
|
2,914
|
|||||||
Asia
|
500
|
585
|
1,605
|
1,686
|
|||||||
Other
|
188
|
363
|
661
|
1,104
|
|||||||
Segment profit
|
|||||||||||
Americas
|
$
|
545
|
$
|
547
|
$
|
1,614
|
$
|
1,548
|
|||
Europe
|
41
|
104
|
155
|
319
|
|||||||
Asia
|
28
|
68
|
151
|
140
|
|||||||
Other
|
(46)
|
(31)
|
(41)
|
(64)
|
|||||||
September 30,
|
December 31,
|
September 30,
|
|||||||||
(In millions)
|
2012
|
2011
|
2011
|
||||||||
Total assets
|
|||||||||||
Americas
|
$
|
109,034
|
$
|
116,034
|
$
|
114,023
|
|||||
Europe
|
44,860
|
46,590
|
47,738
|
||||||||
Asia
|
17,343
|
17,807
|
18,292
|
||||||||
Other
|
9,305
|
13,438
|
15,204
|
||||||||
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Revenues
|
$
|
3,911
|
$
|
4,028
|
$
|
11,600
|
$
|
13,023
|
|||
Segment profit
|
$
|
749
|
$
|
803
|
$
|
2,485
|
$
|
3,086
|
|||
September 30,
|
December 31,
|
September 30,
|
|||||||||
(In millions)
|
2012
|
2011
|
2011
|
||||||||
Total assets
|
$
|
135,975
|
$
|
138,534
|
$
|
140,535
|
|||||
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Revenues
|
$
|
948
|
$
|
935
|
$
|
2,660
|
$
|
2,834
|
|||
Segment profit
|
$
|
217
|
$
|
(82)
|
$
|
494
|
$
|
(775)
|
|||
September 30,
|
December 31,
|
September 30,
|
|||||||||
(In millions)
|
2012
|
2011
|
2011
|
||||||||
Total assets
|
$
|
55,349
|
$
|
60,873
|
$
|
64,449
|
|||||
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Revenues
|
$
|
401
|
$
|
221
|
$
|
1,086
|
$
|
931
|
|||
Segment profit
|
$
|
132
|
$
|
79
|
$
|
325
|
$
|
330
|
|||
September 30,
|
December 31,
|
September 30,
|
|||||||||
(In millions)
|
2012
|
2011
|
2011
|
||||||||
Total assets
|
$
|
19,517
|
$
|
18,357
|
$
|
18,199
|
|||||
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Revenues
|
$
|
1,249
|
$
|
1,265
|
$
|
3,897
|
$
|
3,917
|
|||
Segment profit
|
$
|
251
|
$
|
208
|
$
|
877
|
$
|
835
|
|||
September 30,
|
December 31,
|
September 30,
|
|||||||||
(In millions)
|
2012
|
2011
|
2011
|
||||||||
Total assets
|
$
|
49,276
|
$
|
48,821
|
$
|
48,613
|
|||||
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Earnings (loss) from discontinued operations,
|
|||||||||||
net of taxes
|
$
|
(111)
|
$
|
(64)
|
$
|
(881)
|
$
|
166
|
·
|
Repayments exceeded new issuances of total borrowings by $28.4 billion and collections on financing receivables exceeded originations by $9.5 billion.
|
·
|
The U.S. dollar was weaker for most major currencies at September 30, 2012 than at December 31, 2011, increasing the translated levels of our non-U.S. dollar assets and liabilities.
|
·
|
We issued 22,500 shares of preferred stock for proceeds of $2.2 billion during the second quarter of 2012 and 17,500 shares of preferred stock for proceeds of $1.7 billion during the third quarter of 2012. The effects of these issuances are reported as a $4.0 billion increase in additional paid-in capital.
|
·
|
We paid $5.4 billion of dividends to GE.
|
Financing receivables
|
Nonearning receivables
|
Allowance for losses
|
|||||||||||||||
September 30,
|
December 31,
|
September 30,
|
December 31,
|
September 30,
|
December 31,
|
||||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
|||||||||||
Commercial
|
|||||||||||||||||
CLL
|
|||||||||||||||||
Americas
|
$
|
74,488
|
$
|
80,505
|
$
|
1,600
|
$
|
1,862
|
$
|
567
|
$
|
889
|
|||||
Europe
|
34,916
|
36,899
|
1,533
|
1,167
|
574
|
400
|
|||||||||||
Asia
|
11,597
|
11,635
|
206
|
269
|
72
|
157
|
|||||||||||
Other
|
659
|
436
|
53
|
11
|
2
|
4
|
|||||||||||
Total CLL
|
121,660
|
129,475
|
3,392
|
3,309
|
1,215
|
1,450
|
|||||||||||
Energy
|
|||||||||||||||||
Financial
|
|||||||||||||||||
Services
|
4,989
|
5,912
|
2
|
22
|
13
|
26
|
|||||||||||
GECAS
|
11,628
|
11,901
|
50
|
55
|
12
|
17
|
|||||||||||
Other
|
537
|
1,282
|
16
|
65
|
9
|
37
|
|||||||||||
Total
|
|||||||||||||||||
Commercial
|
138,814
|
148,570
|
3,460
|
3,451
|
1,249
|
1,530
|
|||||||||||
Real Estate
|
|||||||||||||||||
Debt(a)
|
21,225
|
24,501
|
454
|
541
|
631
|
949
|
|||||||||||
Business
|
|||||||||||||||||
Properties(b)
|
5,069
|
8,248
|
228
|
249
|
105
|
140
|
|||||||||||
Total Real Estate
|
26,294
|
32,749
|
682
|
790
|
736
|
1,089
|
|||||||||||
Consumer
|
|||||||||||||||||
Non-U.S.
|
|||||||||||||||||
residential
|
|||||||||||||||||
mortgages(c)
|
33,855
|
35,550
|
2,659
|
2,870
|
467
|
546
|
|||||||||||
Non-U.S.
|
|||||||||||||||||
installment
|
|||||||||||||||||
and revolving
|
|||||||||||||||||
credit
|
18,504
|
18,544
|
234
|
263
|
654
|
717
|
|||||||||||
U.S. installment
|
|||||||||||||||||
and revolving
|
|||||||||||||||||
credit
|
46,939
|
46,689
|
896
|
990
|
2,030
|
2,008
|
|||||||||||
Non-U.S. auto
|
4,601
|
5,691
|
27
|
43
|
73
|
101
|
|||||||||||
Other
|
7,996
|
7,244
|
339
|
419
|
171
|
199
|
|||||||||||
Total Consumer
|
111,895
|
113,718
|
4,155
|
4,585
|
3,395
|
3,571
|
|||||||||||
Total
|
$
|
277,003
|
$
|
295,037
|
$
|
8,297
|
$
|
8,826
|
$
|
5,380
|
$
|
6,190
|
|||||
(a)
|
Financing receivables included an insignificant amount and $0.1 billion of construction loans at September 30, 2012 and December 31, 2011, respectively.
|
(b)
|
Our Business Properties portfolio is underwritten primarily by the credit quality of the borrower and secured by tenant and owner-occupied commercial properties.
|
(c)
|
At September 30, 2012, net of credit insurance, approximately 37% of our Consumer non-U.S. residential mortgage portfolio comprised loans with introductory, below market rates that are scheduled to adjust at future dates; with high loan-to-value ratios at inception (greater than 90%); whose terms permitted interest-only payments; or whose terms resulted in negative amortization. At origination, we underwrite loans with an adjustable rate to the reset value. Of these loans, 88% are in our U.K. and France portfolios, which comprise mainly loans with interest-only payments, high loan-to-value ratios at inception and introductory below market rates, have a delinquency rate of 15%, have a loan-to-value ratio at origination of 82% and have re-indexed loan-to-value ratios of 92% and 65%, respectively. At September 30, 2012, 10% (based on dollar values) of these loans in our U.K. and France portfolios have been restructured.
|
Nonearning financing receivables
|
Allowance for losses
|
Allowance for losses
|
|||||||||||||||
as a percent of
|
as a percent of
|
as a percent of
|
|||||||||||||||
financing receivables
|
nonearning financing receivables
|
total financing receivables
|
|||||||||||||||
September 30,
|
December 31,
|
September 30,
|
December 31,
|
September 30,
|
December 31,
|
||||||||||||
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Commercial
|
|||||||||||||||||
CLL
|
|||||||||||||||||
Americas
|
2.1
|
%
|
2.3
|
%
|
35.4
|
%
|
47.7
|
%
|
0.8
|
%
|
1.1
|
%
|
|||||
Europe
|
4.4
|
3.2
|
37.4
|
34.3
|
1.6
|
1.1
|
|||||||||||
Asia
|
1.8
|
2.3
|
35.0
|
58.4
|
0.6
|
1.3
|
|||||||||||
Other
|
8.0
|
2.5
|
3.8
|
36.4
|
0.3
|
0.9
|
|||||||||||
Total CLL
|
2.8
|
2.6
|
35.8
|
43.8
|
1.0
|
1.1
|
|||||||||||
Energy Financial Services
|
–
|
0.4
|
650.0
|
118.2
|
0.3
|
0.4
|
|||||||||||
GECAS
|
0.4
|
0.5
|
24.0
|
30.9
|
0.1
|
0.1
|
|||||||||||
Other
|
3.0
|
5.1
|
56.3
|
56.9
|
1.7
|
2.9
|
|||||||||||
Total Commercial
|
2.5
|
2.3
|
36.1
|
44.3
|
0.9
|
1.0
|
|||||||||||
Real Estate
|
|||||||||||||||||
Debt
|
2.1
|
2.2
|
139.0
|
175.4
|
3.0
|
3.9
|
|||||||||||
Business Properties
|
4.5
|
3.0
|
46.1
|
56.2
|
2.1
|
1.7
|
|||||||||||
Total Real Estate
|
2.6
|
2.4
|
107.9
|
137.8
|
2.8
|
3.3
|
|||||||||||
Consumer
|
|||||||||||||||||
Non-U.S.
|
|||||||||||||||||
residential mortgages
|
7.9
|
8.1
|
17.6
|
19.0
|
1.4
|
1.5
|
|||||||||||
Non-U.S.
|
|||||||||||||||||
installment and
|
|||||||||||||||||
revolving credit
|
1.3
|
1.4
|
279.5
|
272.6
|
3.5
|
3.9
|
|||||||||||
U.S. installment and
|
|||||||||||||||||
revolving credit
|
1.9
|
2.1
|
226.6
|
202.8
|
4.3
|
4.3
|
|||||||||||
Non-U.S. auto
|
0.6
|
0.8
|
270.4
|
234.9
|
1.6
|
1.8
|
|||||||||||
Other
|
4.2
|
5.8
|
50.4
|
47.5
|
2.1
|
2.7
|
|||||||||||
Total Consumer
|
3.7
|
4.0
|
81.7
|
77.9
|
3.0
|
3.1
|
|||||||||||
Total
|
3.0
|
3.0
|
64.8
|
70.1
|
1.9
|
2.1
|
|||||||||||
Nonaccrual
|
Nonearning
|
||||||||||
financing
|
financing
|
||||||||||
(In millions)
|
receivables
|
receivables
|
|||||||||
September 30, 2012
|
|||||||||||
Commercial
|
|||||||||||
CLL
|
$
|
4,736
|
$
|
3,392
|
|||||||
Energy Financial Services
|
51
|
2
|
|||||||||
GECAS
|
304
|
50
|
|||||||||
Other
|
33
|
16
|
|||||||||
Total Commercial
|
5,124
|
3,460
|
|||||||||
Real Estate
|
5,633
|
682
|
|||||||||
Consumer
|
4,328
|
4,155
|
|||||||||
Total
|
$
|
15,085
|
$
|
8,297
|
|||||||
(In millions)
|
September 30,
|
December 31,
|
|||||||||
2012
|
2011
|
||||||||||
Loans requiring allowance for losses
|
|||||||||||
Commercial(a)
|
$
|
1,973
|
$
|
2,357
|
|||||||
Real Estate
|
3,595
|
4,957
|
|||||||||
Consumer
|
3,037
|
2,824
|
|||||||||
Total loans requiring allowance for losses
|
8,605
|
10,138
|
|||||||||
Loans expected to be fully recoverable
|
|||||||||||
Commercial(a)
|
3,941
|
3,305
|
|||||||||
Real Estate
|
3,882
|
3,790
|
|||||||||
Consumer
|
113
|
69
|
|||||||||
Total loans expected to be fully recoverable
|
7,936
|
7,164
|
|||||||||
Total impaired loans
|
$
|
16,541
|
$
|
17,302
|
|||||||
Allowance for losses (specific reserves)
|
|||||||||||
Commercial(a)
|
$
|
680
|
$
|
812
|
|||||||
Real Estate
|
558
|
822
|
|||||||||
Consumer
|
658
|
680
|
|||||||||
Total allowance for losses (specific reserves)
|
$
|
1,896
|
$
|
2,314
|
|||||||
Average investment during the period
|
$
|
16,841
|
$
|
18,167
|
|||||||
Interest income earned while impaired(b)
|
573
|
733
|
|||||||||
(a)
|
Includes CLL, Energy Financial Services, GECAS and Other.
|
(b)
|
Recognized principally on a cash basis.
|
September 30,
|
December 31,
|
||||||||||
(In millions)
|
2012
|
2011
|
|||||||||
Method used to measure impairment
|
|||||||||||
Discounted cash flow
|
$
|
8,307
|
$
|
8,858
|
|||||||
Collateral value
|
8,234
|
8,444
|
|||||||||
Total
|
$
|
16,541
|
$
|
17,302
|
Rest of
|
Total
|
||||||||||||||||||||||
September 30, 2012 (In millions)
|
Spain
|
Portugal
|
Ireland
|
Italy
|
Greece
|
Hungary
|
Europe
|
Europe
|
|||||||||||||||
Financing receivables,
|
|||||||||||||||||||||||
before allowance
|
|||||||||||||||||||||||
for losses on
|
|||||||||||||||||||||||
financing receivables
|
$
|
2,029
|
$
|
497
|
$
|
353
|
$
|
7,270
|
$
|
57
|
$
|
3,061
|
$
|
77,237
|
$
|
90,504
|
|||||||
Allowance for losses on
|
|||||||||||||||||||||||
financing receivables
|
(105)
|
(27)
|
(12)
|
(348)
|
–
|
(94)
|
(1,399)
|
(1,985)
|
|||||||||||||||
Financing receivables,
|
|||||||||||||||||||||||
net of allowance
|
|||||||||||||||||||||||
for losses on
|
1,924
|
470
|
341
|
6,922
|
57
|
2,967
|
75,838
|
88,519
|
|||||||||||||||
financing receivables(a)(b)
|
|||||||||||||||||||||||
Investments(c)(d)
|
115
|
–
|
–
|
494
|
–
|
221
|
1,838
|
2,668
|
|||||||||||||||
Cost and equity method
|
|||||||||||||||||||||||
investments(e)
|
386
|
22
|
350
|
63
|
32
|
2
|
680
|
1,535
|
|||||||||||||||
Derivatives,
|
|||||||||||||||||||||||
net of collateral(c)(f)
|
3
|
–
|
–
|
84
|
–
|
–
|
159
|
246
|
|||||||||||||||
ELTO(g)
|
535
|
63
|
311
|
873
|
256
|
349
|
9,871
|
12,258
|
|||||||||||||||
Real estate held for
|
|||||||||||||||||||||||
investment(g)
|
795
|
–
|
–
|
406
|
–
|
–
|
6,248
|
7,449
|
|||||||||||||||
Total funded exposures(h)
|
$
|
3,758
|
$
|
555
|
$
|
1,002
|
$
|
8,842
|
$
|
345
|
$
|
3,539
|
$
|
94,634
|
$
|
112,675
|
|||||||
Unfunded commitments
|
$
|
19
|
$
|
9
|
$
|
28
|
$
|
370
|
$
|
5
|
$
|
632
|
$
|
8,460
|
$
|
9,523
|
|||||||
(a)
|
Financing receivable amounts are classified based on the location or nature of the related obligor.
|
(b)
|
Substantially all relates to non-sovereign obligors. Includes residential mortgage loans of approximately $33.6 billion before consideration of purchased credit protection. We have third-party mortgage insurance for approximately 14% of these residential mortgage loans, substantially all of which were originated in the U.K., Poland and France.
|
(c)
|
Investments and derivatives are classified based on the location of the parent of the obligor or issuer.
|
(d)
|
Includes $1.0 billion related to financial institutions, $0.3 billion related to non-financial institutions and $1.4 billion related to sovereign issuers. Sovereign issuances totaled $0.1 billion and $0.2 billion related to Italy and Hungary, respectively. We held no investments issued by sovereign entities in the other focus countries.
|
(e)
|
Substantially all is non-sovereign.
|
(f)
|
Net of cash collateral; entire amount is non-sovereign.
|
(g)
|
These assets are held under long-term investment and operating strategies, and our ELTO strategies contemplate an ability to redeploy assets under lease should default by the lessee occur. The values of these assets could be subject to decline or impairment in the current environment.
|
(h)
|
Excludes $42.6 billion of cash and equivalents, which is composed of $23.5 billion of cash on short-term placement with highly rated global financial institutions based in Europe, sovereign central banks and agencies or supra national entities, of which $1.2 billion is in focus countries, and $19.1 billion of cash and equivalents placed with highly rated European financial institutions on a short-term basis, secured by U.S. Treasury securities ($11.1 billion) and sovereign bonds of non-focus countries ($8.0 billion), where the value of our collateral exceeds the amount of our cash exposure.
|
Exhibit 3(i)
|
A complete copy of the Certificate of Incorporation of GECC consisting of the Restated Certificate of Incorporation of GECC as filed with the Office of the Secretary of State, State of Delaware on April 1, 2008, as amended by the Certificates of Designations of GECC with respect to the Series A and Series B Preferred Stock as filed with the Office of the Secretary of State, State of Delaware on June 8, 2012 and July 25, 2012, respectively.
|
|
Exhibit 4
|
Form of Certificate representing the Series B Preferred Stock (Incorporated by reference to Exhibit 4.1 of GECC’s Current Report on Form 8-K dated as of July 25, 2012) (Commission file number 001-06461).
|
|
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 31(a)
|
Certification Pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as Amended.
|
|
Exhibit 31(b)
|
Certification Pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as Amended.
|
|
Exhibit 32
|
Certification Pursuant to 18 U.S.C. Section 1350.
|
|
Exhibit 99
|
Financial Measures That Supplement Generally Accepted Accounting Principles.
|
|
Exhibit 101
|
The following materials from General Electric Capital Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, formatted in XBRL (eXtensible Business Reporting Language); (i) Condensed Statement of Earnings for the three and nine months ended September 30, 2012 and 2011, (ii) Condensed Statement of Comprehensive Income for the three and nine months ended September 30, 2012 and 2011, (iii) Condensed Statement of Changes in Shareowners’ Equity for the nine months ended September 30, 2012 and 2011, (iv) Condensed Statement of Financial Position at September 30, 2012 and December 31, 2011, (v) Condensed Statement of Cash Flows for the nine months ended September 30, 2012 and 2011, and (vi) Notes to Condensed, Financial Statements.*
|
|
*
|
Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
|
General Electric Capital Corporation
(Registrant)
|
|||
November 6, 2012
|
/s/Jamie S. Miller
|
||
Date
|
Jamie S. Miller
Senior Vice President and Controller
Duly Authorized Officer and Principal Accounting Officer
|
(1)
|
The designation of the series, which may be by distinguishing number, letter or title.
|
(2)
|
The number of shares of the series, which number the Board of Directors may thereafter (except where otherwise provided in the Preferred Stock Designation) increase or decrease (but not below the number of shares thereof then outstanding).
|
(3)
|
The amounts payable on, and the preferences, if any, of shares of the series in respect of dividends, and whether such dividends, if any, shall be cumulative or noncumulative.
|
(4)
|
Dates at which dividends, if any, shall be payable.
|
(5)
|
The redemption rights and price or prices, if any, for shares of the series.
|
(6)
|
The terms and amount of any sinking fund provided for the purchase or redemption of shares of the series.
|
(7)
|
The amounts payable on, and the preferences, if any, of shares of the series in the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the corporation.
|
(8)
|
Whether the shares of the series shall be convertible into or exchangeable for shares of any other class or series, or any other security, of the corporation or any other corporation, and, if so, the specification of such other class or series or such other security, the conversion or exchange price or prices or rate or rates, any adjustments thereof, the date or dates at which such shares shall be convertible or exchangeable and all other terms and conditions upon which such conversion or exchange may be made.
|
(9)
|
Restrictions on the issuance of shares of the same series or of any other class or series.
|
(10)
|
The voting rights, if any, of the holders of shares of the series.
|
GENERAL ELECTRIC CAPITAL CORPORATION
|
||
By:
|
/s/ Kathryn A. Cassidy
|
|
Name:
|
Kathryn A. Cassidy
|
|
Title:
|
Senior Vice President, Corporate Treasury and Global Funding Operation
|
GENERAL ELECTRIC CAPITAL CORPORATION
|
||
By:
|
/s/ Kathryn A. Cassidy
|
|
Name:
|
Kathryn A. Cassidy
|
|
Title:
|
Senior Vice President, Corporate Treasury and Global Funding Operation
|
Ratio of
|
|||||||||||
earnings to
|
|||||||||||
combined
|
|||||||||||
Ratio of
|
fixed charges
|
||||||||||
earnings to
|
and preferred
|
||||||||||
fixed charges
|
stock dividends
|
||||||||||
(Dollars in millions)
|
|||||||||||
Earnings(a)
|
$
|
5,609
|
$
|
5,609
|
|||||||
Plus:
|
|||||||||||
Interest included in expense(b)
|
8,989
|
8,989
|
|||||||||
One-third of rental expense(c)
|
145
|
145
|
|||||||||
Adjusted “earnings”
|
$
|
14,743
|
$
|
14,743
|
|||||||
Fixed charges:
|
|||||||||||
Interest included in expense(b)
|
$
|
8,989
|
$
|
8,989
|
|||||||
Interest capitalized
|
20
|
20
|
|||||||||
One-third of rental expense(c)
|
145
|
145
|
|||||||||
Total fixed charges
|
$
|
9,154
|
$
|
9,154
|
|||||||
Ratio of earnings to fixed charges
|
1.61
|
||||||||||
Preferred stock dividend requirements
|
$
|
–
|
|||||||||
Ratio of earnings before provision for income taxes to
|
|||||||||||
earnings from continuing operations
|
1.07
|
||||||||||
Preferred stock dividend factor on pre-tax basis
|
–
|
||||||||||
Fixed charges
|
$
|
9,154
|
|||||||||
Total fixed charges and preferred stock dividend requirements
|
$
|
9,154
|
|||||||||
Ratio of earnings to combined fixed charges and
|
|||||||||||
preferred stock dividends
|
1.61
|
||||||||||
(a)
|
Earnings before income taxes, noncontrolling interests, discontinued operations and undistributed earnings of equity investees.
|
(b)
|
Included interest on tax deficiencies.
|
(c)
|
Considered to be representative of interest factor in rental expense.
|
I, Michael A. Neal, certify that:
|
||
1.
|
I have reviewed this quarterly report on Form 10-Q of General Electric Capital Corporation;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Michael A. Neal
|
|
Michael A. Neal
|
|
Chief Executive Officer
|
I, Jeffrey S. Bornstein, certify that:
|
||
1.
|
I have reviewed this quarterly report on Form 10-Q of General Electric Capital Corporation;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Jeffrey S. Bornstein
|
|
Jeffrey S. Bornstein
|
|
Chief Financial Officer
|
(1)
|
The report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the registrant.
|
November 6, 2012
|
|
/s/ Michael A. Neal
|
|
Michael A. Neal
Chief Executive Officer
|
|
/s/ Jeffrey S. Bornstein
|
|
Jeffrey S. Bornstein
Chief Financial Officer
|
September 30,
|
January 1,
|
||||
(In billions)
|
2012
|
2009
|
|||
GECC total assets
|
$
|
561.6
|
$
|
661.0
|
|
Less assets of discontinued operations
|
1.2
|
25.1
|
|||
Less non-interest bearing liabilities
|
57.5
|
85.4
|
|||
GE Capital ENI
|
502.9
|
550.5
|
|||
Less cash and equivalents
|
77.7
|
37.7
|
|||
GE Capital ENI, excluding cash and equivalents
|
$
|
425.2
|
$
|
512.8
|
|
Investment Securities (Gross Realized Gain Losses) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Investment Securities [Abstract] | ||||
Gains | $ 26 | $ 28 | $ 85 | $ 189 |
Losses, including impairments | (55) | (70) | (159) | (197) |
Total | $ (29) | $ (42) | $ (74) | $ (8) |
Financial Instruments (Free-standing derivatives) (Details) (Free Standing Derivatives [Member], USD $)
In Millions, unless otherwise specified |
9 Months Ended | |
---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Free standing derivatives | ||
Gain (loss) on derivatives | $ (644) | $ 66 |
Interest Rate Contract [Member]
|
||
Free standing derivatives | ||
Gain (loss) on derivatives | (211) | 32 |
Foreign Exchange Contract [Member]
|
||
Free standing derivatives | ||
Gain (loss) on derivatives | (428) | 9 |
Other Contract [Member]
|
||
Free standing derivatives | ||
Gain (loss) on derivatives | $ (5) | $ 25 |
Financial Instruments (Tables)
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated fair value of assets and liabilities |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan commitments |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of derivatives by contract type |
Derivatives are classified in the captions “Other assets” and “Other liabilities” in our financial statements.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value hedges |
Fair value hedges resulted in $(113) million and $(131) million of ineffectiveness in the three months ended September 30, 2012 and 2011, respectively. In both the three months ended September 30, 2012 and 2011, there were insignificant amounts excluded from the assessment of effectiveness.
Fair value hedges resulted in $(300) million and $(334) million of ineffectiveness in the nine months ended September 30, 2012 and 2011, respectively. In both the nine months ended September 30, 2012 and 2011, there were insignificant amounts excluded from the assessment of effectiveness.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flow hedges |
The total pre-tax amount in AOCI related to cash flow hedges of forecasted transactions was a $1,062 million loss at September 30, 2012. We expect to transfer $459 million to earnings as an expense in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions. In the three and nine months ended September 30, 2012 and 2011, we recognized insignificant gains and losses related to hedged forecasted transactions and firm commitments that did not occur by the end of the originally specified period. At September 30, 2012 and 2011, the maximum term of derivative instruments that hedge forecasted transactions was 20 years and 21 years, respectively.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment hedges |
|
Shareowners' Equity (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|||||
Changes To Noncontrolling Interest | ||||||||
Beginning balance | $ 759 | $ 1,201 | $ 690 | [1] | $ 1,164 | |||
Net earnings | 20 | 38 | 46 | 89 | ||||
Dividends | (12) | (4) | (17) | (17) | ||||
AOCI and other | (56) | (30) | (8) | (31) | ||||
Ending balance | $ 711 | [1] | $ 1,205 | $ 711 | [1] | $ 1,205 | ||
|
Variable Interest Entities (Unconsolidated Variable Interest Entities) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Dec. 31, 2011
|
Sep. 30, 2012
Unconsolidated VIEs [Member]
|
Jun. 30, 2012
PTL [Member]
|
Sep. 30, 2012
PTL [Member]
|
Sep. 30, 2012
PTL [Member]
Investment in Unconsolidated VIEs [Member]
|
Dec. 31, 2011
PTL [Member]
Investment in Unconsolidated VIEs [Member]
|
Sep. 30, 2012
All Other [Member]
Investment in Unconsolidated VIEs [Member]
|
Dec. 31, 2011
All Other [Member]
Investment in Unconsolidated VIEs [Member]
|
Sep. 30, 2012
Total [Member]
Investment in Unconsolidated VIEs [Member]
|
Dec. 31, 2011
Total [Member]
Investment in Unconsolidated VIEs [Member]
|
|
Variable Interest Entity [Line Items] | |||||||||||
Non Controlling Stake In VIE | $ 2,732 | ||||||||||
Outstanding Debt Paid By Limited Partner To Company Financed Through Third Parties And Recapitalization | 4,750 | ||||||||||
Partnership interest | 816 | ||||||||||
Loans and advances | 1,880 | ||||||||||
Real Estate Investments, Net | 3,151 | ||||||||||
Debt Investment Fund | 4,792 | ||||||||||
Factored Receivables | 1,876 | ||||||||||
Other assets and investment securities | 2,732 | 7,038 | 8,273 | 6,954 | 11,005 | 13,992 | |||||
Financing receivables | 271,623 | 288,847 | 0 | 0 | 3,171 | 2,507 | 3,171 | 2,507 | |||
Total investment | 2,732 | 7,038 | 11,444 | 9,461 | 14,176 | 16,499 | |||||
Contractual obligations to fund new investments or guarantees | 159 | 600 | 2,314 | 2,253 | 2,473 | 2,853 | |||||
Revolving lines of credit | 0 | 1,356 | 68 | 92 | 68 | 1,448 | |||||
Total | $ 2,891 | $ 8,994 | $ 13,826 | $ 11,806 | $ 16,717 | $ 20,800 |
Financial Instruments (Counterparty credit risk) (Details) (USD $)
In Millions, unless otherwise specified |
Sep. 30, 2012
|
---|---|
Counterparty credit risk | |
Exposure To Counter Parties | $ 298 |
Total Collateral | 9,565 |
Fair value of collateral posted to counterparties for derivataive obligations | 710 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 538 |
Cash [Member]
|
|
Counterparty credit risk | |
Total Collateral | 3,939 |
Securities Held By Third Parties [Member]
|
|
Counterparty credit risk | |
Securities Held as Collateral, at Fair Value | $ 5,626 |
Investment Securities (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
|
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Investment Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments |
|
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Schedule of investments, by type and length in continuous loss position |
|
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Schedule of contractual maturities |
|
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Supplemental gross realized gains losses on available-for-sale investment securities |
|
Assets and Liabilities of Businesses Held For Sale and Discontinued Operations (GE Money Japan Narrative) (Details)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
USD ($)
|
Sep. 30, 2011
USD ($)
|
Sep. 30, 2012
USD ($)
|
Sep. 30, 2011
USD ($)
|
Dec. 31, 2012
|
Sep. 30, 2012
GE Money Japan [Member]
USD ($)
|
Sep. 30, 2011
GE Money Japan [Member]
USD ($)
|
Sep. 30, 2012
GE Money Japan [Member]
USD ($)
|
Sep. 30, 2011
GE Money Japan [Member]
USD ($)
|
Sep. 30, 2012
GE Money Japan [Member]
JPY (¥)
|
Sep. 30, 2012
GE Money Japan [Member]
Upper Limit [Member]
USD ($)
|
Sep. 30, 2012
GE Money Japan [Member]
Lower Limit [Member]
USD ($)
|
|
Financial Information For Discontinued Operations [Line Items] | ||||||||||||
Tax Credit Carryforward Date Of Expiration | 2017 | |||||||||||
Other Tax Carryforward, Expiration Dates | 2019 | |||||||||||
Threshold above which claims become company's responsibility | $ 3,000 | $ 3,000 | ¥ 258,000 | |||||||||
Increase Adjustment To Liability For Reimbursement Of Claims In Excess Of Statutory Interest Rate | 344 | |||||||||||
Liability For Reimbursement Of Claims In Excess Of Statutory Interest Rate | 578 | |||||||||||
Adverse Incoming Daily Claim Rate Reduction Assumption Sensitivity Test For Liability Calculation | 50.00% | 20.00% | ||||||||||
Sensitivity Analysis Potential Increase (Decrease) To Estimated Contingent Liability | 350 | 100 | ||||||||||
Loss from discontinued operations, net of taxes | 111 | 64 | 881 | (166) | ||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ (111) | $ (64) | $ (881) | $ 166 | $ (9) | $ 2 | $ (363) | $ 2 |
Variable Interest Entities (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Dec. 31, 2011
|
Sep. 30, 2012
Loans and Finance Receivables [Member]
|
Dec. 31, 2011
Loans and Finance Receivables [Member]
|
Sep. 30, 2012
Investment Securities [Member]
|
Dec. 31, 2011
Investment Securities [Member]
|
Sep. 30, 2012
Assets Other [Member]
|
Dec. 31, 2011
Assets Other [Member]
|
Sep. 30, 2012
Assets, Total [Member]
|
Dec. 31, 2011
Assets, Total [Member]
|
Sep. 30, 2012
Borrowings [Member]
|
Dec. 31, 2011
Borrowings [Member]
|
Sep. 30, 2012
Nonrecourse Borrowings [Member]
|
Dec. 31, 2011
Nonrecourse Borrowings [Member]
|
Sep. 30, 2012
Liabilities Other [Member]
|
Dec. 31, 2011
Liabilities Other [Member]
|
Sep. 30, 2012
Liabilities, Total [Member]
|
Dec. 31, 2011
Liabilities, Total [Member]
|
Sep. 30, 2012
Consolidated Variable Interest Entities [Member]
|
Sep. 30, 2011
Consolidated Variable Interest Entities [Member]
|
Sep. 30, 2012
Consolidated Variable Interest Entities [Member]
|
Sep. 30, 2011
Consolidated Variable Interest Entities [Member]
|
Sep. 30, 2012
Power Generating Activities Entity [Member]
|
Sep. 30, 2012
Power Generating Activities Entity [Member]
Assets Other [Member]
|
Sep. 30, 2012
Power Generating Activities Entity [Member]
Borrowings [Member]
|
Sep. 30, 2012
Industrial Equipment Joint Venture [Member]
|
Sep. 30, 2012
Insurance Entities [Member]
|
Sep. 30, 2012
Trinity [Member]
|
May 01, 2012
Trinity [Member]
|
Dec. 31, 2011
Trinity [Member]
|
Sep. 30, 2012
Trinity [Member]
Loans and Finance Receivables [Member]
|
Dec. 31, 2011
Trinity [Member]
Loans and Finance Receivables [Member]
|
Sep. 30, 2012
Trinity [Member]
Investment Securities [Member]
|
Dec. 31, 2011
Trinity [Member]
Investment Securities [Member]
|
Sep. 30, 2012
Trinity [Member]
Assets Other [Member]
|
Dec. 31, 2011
Trinity [Member]
Assets Other [Member]
|
Sep. 30, 2012
Trinity [Member]
Assets, Total [Member]
|
Dec. 31, 2011
Trinity [Member]
Assets, Total [Member]
|
Sep. 30, 2012
Trinity [Member]
Borrowings [Member]
|
Dec. 31, 2011
Trinity [Member]
Borrowings [Member]
|
Sep. 30, 2012
Trinity [Member]
Nonrecourse Borrowings [Member]
|
Dec. 31, 2011
Trinity [Member]
Nonrecourse Borrowings [Member]
|
Sep. 30, 2012
Trinity [Member]
Liabilities Other [Member]
|
Dec. 31, 2011
Trinity [Member]
Liabilities Other [Member]
|
Sep. 30, 2012
Trinity [Member]
Liabilities, Total [Member]
|
Dec. 31, 2011
Trinity [Member]
Liabilities, Total [Member]
|
Sep. 30, 2012
Consolidated Securitization Entities [Member]
|
Sep. 30, 2012
Other 1 [Member]
Loans and Finance Receivables [Member]
|
Dec. 31, 2011
Other 1 [Member]
Loans and Finance Receivables [Member]
|
Sep. 30, 2012
Other 1 [Member]
Investment Securities [Member]
|
Dec. 31, 2011
Other 1 [Member]
Investment Securities [Member]
|
Sep. 30, 2012
Other 1 [Member]
Assets Other [Member]
|
Dec. 31, 2011
Other 1 [Member]
Assets Other [Member]
|
Sep. 30, 2012
Other 1 [Member]
Assets, Total [Member]
|
Dec. 31, 2011
Other 1 [Member]
Assets, Total [Member]
|
Sep. 30, 2012
Other 1 [Member]
Borrowings [Member]
|
Dec. 31, 2011
Other 1 [Member]
Borrowings [Member]
|
Sep. 30, 2012
Other 1 [Member]
Nonrecourse Borrowings [Member]
|
Dec. 31, 2011
Other 1 [Member]
Nonrecourse Borrowings [Member]
|
Sep. 30, 2012
Other 1 [Member]
Liabilities Other [Member]
|
Dec. 31, 2011
Other 1 [Member]
Liabilities Other [Member]
|
Sep. 30, 2012
Other 1 [Member]
Liabilities, Total [Member]
|
Dec. 31, 2011
Other 1 [Member]
Liabilities, Total [Member]
|
Sep. 30, 2012
Credit Card Receivable [Member]
Consolidated Securitization Entities [Member]
Loans and Finance Receivables [Member]
|
Dec. 31, 2011
Credit Card Receivable [Member]
Consolidated Securitization Entities [Member]
Loans and Finance Receivables [Member]
|
Sep. 30, 2012
Credit Card Receivable [Member]
Consolidated Securitization Entities [Member]
Investment Securities [Member]
|
Dec. 31, 2011
Credit Card Receivable [Member]
Consolidated Securitization Entities [Member]
Investment Securities [Member]
|
Sep. 30, 2012
Credit Card Receivable [Member]
Consolidated Securitization Entities [Member]
Assets Other [Member]
|
Dec. 31, 2011
Credit Card Receivable [Member]
Consolidated Securitization Entities [Member]
Assets Other [Member]
|
Sep. 30, 2012
Credit Card Receivable [Member]
Consolidated Securitization Entities [Member]
Assets, Total [Member]
|
Dec. 31, 2011
Credit Card Receivable [Member]
Consolidated Securitization Entities [Member]
Assets, Total [Member]
|
Sep. 30, 2012
Credit Card Receivable [Member]
Consolidated Securitization Entities [Member]
Borrowings [Member]
|
Dec. 31, 2011
Credit Card Receivable [Member]
Consolidated Securitization Entities [Member]
Borrowings [Member]
|
Sep. 30, 2012
Credit Card Receivable [Member]
Consolidated Securitization Entities [Member]
Nonrecourse Borrowings [Member]
|
Dec. 31, 2011
Credit Card Receivable [Member]
Consolidated Securitization Entities [Member]
Nonrecourse Borrowings [Member]
|
Sep. 30, 2012
Credit Card Receivable [Member]
Consolidated Securitization Entities [Member]
Liabilities Other [Member]
|
Dec. 31, 2011
Credit Card Receivable [Member]
Consolidated Securitization Entities [Member]
Liabilities Other [Member]
|
Sep. 30, 2012
Credit Card Receivable [Member]
Consolidated Securitization Entities [Member]
Liabilities, Total [Member]
|
Dec. 31, 2011
Credit Card Receivable [Member]
Consolidated Securitization Entities [Member]
Liabilities, Total [Member]
|
Sep. 30, 2012
Equipment [Member]
Consolidated Securitization Entities [Member]
Loans and Finance Receivables [Member]
|
Dec. 31, 2011
Equipment [Member]
Consolidated Securitization Entities [Member]
Loans and Finance Receivables [Member]
|
Sep. 30, 2012
Equipment [Member]
Consolidated Securitization Entities [Member]
Investment Securities [Member]
|
Dec. 31, 2011
Equipment [Member]
Consolidated Securitization Entities [Member]
Investment Securities [Member]
|
Sep. 30, 2012
Equipment [Member]
Consolidated Securitization Entities [Member]
Assets Other [Member]
|
Dec. 31, 2011
Equipment [Member]
Consolidated Securitization Entities [Member]
Assets Other [Member]
|
Sep. 30, 2012
Equipment [Member]
Consolidated Securitization Entities [Member]
Assets, Total [Member]
|
Dec. 31, 2011
Equipment [Member]
Consolidated Securitization Entities [Member]
Assets, Total [Member]
|
Sep. 30, 2012
Equipment [Member]
Consolidated Securitization Entities [Member]
Borrowings [Member]
|
Dec. 31, 2011
Equipment [Member]
Consolidated Securitization Entities [Member]
Borrowings [Member]
|
Sep. 30, 2012
Equipment [Member]
Consolidated Securitization Entities [Member]
Nonrecourse Borrowings [Member]
|
Dec. 31, 2011
Equipment [Member]
Consolidated Securitization Entities [Member]
Nonrecourse Borrowings [Member]
|
Sep. 30, 2012
Equipment [Member]
Consolidated Securitization Entities [Member]
Liabilities Other [Member]
|
Dec. 31, 2011
Equipment [Member]
Consolidated Securitization Entities [Member]
Liabilities Other [Member]
|
Sep. 30, 2012
Equipment [Member]
Consolidated Securitization Entities [Member]
Liabilities, Total [Member]
|
Dec. 31, 2011
Equipment [Member]
Consolidated Securitization Entities [Member]
Liabilities, Total [Member]
|
Sep. 30, 2012
Commercial Real Estate [Member]
Consolidated Securitization Entities [Member]
Loans and Finance Receivables [Member]
|
Dec. 31, 2011
Commercial Real Estate [Member]
Consolidated Securitization Entities [Member]
Loans and Finance Receivables [Member]
|
Sep. 30, 2012
Commercial Real Estate [Member]
Consolidated Securitization Entities [Member]
Investment Securities [Member]
|
Dec. 31, 2011
Commercial Real Estate [Member]
Consolidated Securitization Entities [Member]
Investment Securities [Member]
|
Sep. 30, 2012
Commercial Real Estate [Member]
Consolidated Securitization Entities [Member]
Assets Other [Member]
|
Dec. 31, 2011
Commercial Real Estate [Member]
Consolidated Securitization Entities [Member]
Assets Other [Member]
|
Sep. 30, 2012
Commercial Real Estate [Member]
Consolidated Securitization Entities [Member]
Assets, Total [Member]
|
Dec. 31, 2011
Commercial Real Estate [Member]
Consolidated Securitization Entities [Member]
Assets, Total [Member]
|
Sep. 30, 2012
Commercial Real Estate [Member]
Consolidated Securitization Entities [Member]
Borrowings [Member]
|
Dec. 31, 2011
Commercial Real Estate [Member]
Consolidated Securitization Entities [Member]
Borrowings [Member]
|
Sep. 30, 2012
Commercial Real Estate [Member]
Consolidated Securitization Entities [Member]
Nonrecourse Borrowings [Member]
|
Dec. 31, 2011
Commercial Real Estate [Member]
Consolidated Securitization Entities [Member]
Nonrecourse Borrowings [Member]
|
Sep. 30, 2012
Commercial Real Estate [Member]
Consolidated Securitization Entities [Member]
Liabilities Other [Member]
|
Dec. 31, 2011
Commercial Real Estate [Member]
Consolidated Securitization Entities [Member]
Liabilities Other [Member]
|
Sep. 30, 2012
Commercial Real Estate [Member]
Consolidated Securitization Entities [Member]
Liabilities, Total [Member]
|
Dec. 31, 2011
Commercial Real Estate [Member]
Consolidated Securitization Entities [Member]
Liabilities, Total [Member]
|
Sep. 30, 2012
Trade Accounts Receivable [Member]
Consolidated Securitization Entities [Member]
Loans and Finance Receivables [Member]
|
Dec. 31, 2011
Trade Accounts Receivable [Member]
Consolidated Securitization Entities [Member]
Loans and Finance Receivables [Member]
|
Sep. 30, 2012
Trade Accounts Receivable [Member]
Consolidated Securitization Entities [Member]
Investment Securities [Member]
|
Dec. 31, 2011
Trade Accounts Receivable [Member]
Consolidated Securitization Entities [Member]
Investment Securities [Member]
|
Sep. 30, 2012
Trade Accounts Receivable [Member]
Consolidated Securitization Entities [Member]
Assets Other [Member]
|
Dec. 31, 2011
Trade Accounts Receivable [Member]
Consolidated Securitization Entities [Member]
Assets Other [Member]
|
Sep. 30, 2012
Trade Accounts Receivable [Member]
Consolidated Securitization Entities [Member]
Assets, Total [Member]
|
Dec. 31, 2011
Trade Accounts Receivable [Member]
Consolidated Securitization Entities [Member]
Assets, Total [Member]
|
Sep. 30, 2012
Trade Accounts Receivable [Member]
Consolidated Securitization Entities [Member]
Borrowings [Member]
|
Dec. 31, 2011
Trade Accounts Receivable [Member]
Consolidated Securitization Entities [Member]
Borrowings [Member]
|
Sep. 30, 2012
Trade Accounts Receivable [Member]
Consolidated Securitization Entities [Member]
Nonrecourse Borrowings [Member]
|
Dec. 31, 2011
Trade Accounts Receivable [Member]
Consolidated Securitization Entities [Member]
Nonrecourse Borrowings [Member]
|
Sep. 30, 2012
Trade Accounts Receivable [Member]
Consolidated Securitization Entities [Member]
Liabilities Other [Member]
|
Dec. 31, 2011
Trade Accounts Receivable [Member]
Consolidated Securitization Entities [Member]
Liabilities Other [Member]
|
Sep. 30, 2012
Trade Accounts Receivable [Member]
Consolidated Securitization Entities [Member]
Liabilities, Total [Member]
|
Dec. 31, 2011
Trade Accounts Receivable [Member]
Consolidated Securitization Entities [Member]
Liabilities, Total [Member]
|
||||||
Assets And Liabilities Of Consolidated VIEs [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal Amount Of GICs Redeemed | $ 1,981 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | 561,602 | [1] | 561,602 | [1] | 584,536 | [1] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | 479,542 | [1] | 479,542 | [1] | 506,736 | [1] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets VIE | 40,782 | 37,860 | 4,798 | 5,320 | 4,053 | 3,149 | 49,633 | 46,329 | 2,426 | 1,519 | 1,398 | 1,211 | 0 | 0 | 3,733 | 4,289 | 80 | 389 | 3,813 | 4,678 | 1,832 | 2,973 | 1,065 | 1,031 | 3,479 | 2,250 | 6,376 | 6,254 | 22,133 | 19,229 | 0 | 0 | 28 | 17 | 22,161 | 19,246 | 12,066 | 10,523 | 0 | 0 | 332 | 283 | 12,398 | 10,806 | 2,921 | 3,521 | 0 | 0 | 134 | 210 | 3,055 | 3,731 | 1,830 | 1,614 | 0 | 0 | 0 | 0 | 1,830 | 1,614 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities VIE | 1,292 | 848 | 30,270 | 28,758 | 3,302 | 5,847 | 34,864 | 35,453 | 610 | 537 | 877 | 621 | 0 | 0 | 0 | 0 | 1,705 | 4,456 | 1,705 | 4,456 | 1,263 | 821 | 0 | 980 | 1,460 | 1,312 | 2,723 | 3,113 | 0 | 0 | 16,050 | 14,184 | 116 | 37 | 16,166 | 14,221 | 4 | 2 | 9,705 | 8,166 | 1 | 0 | 9,710 | 8,168 | 25 | 25 | 2,936 | 3,659 | 3 | 19 | 2,964 | 3,703 | 0 | 0 | 1,579 | 1,769 | 17 | 23 | 1,596 | 1,792 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues of consolidated VIEs | 11,369 | 12,015 | 34,269 | 37,491 | 1,675 | 1,475 | 4,457 | 4,914 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for Loan and Lease Losses | 1,122 | 961 | 2,728 | 2,893 | 414 | 332 | 784 | 882 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest And Other Financial Charges | 97 | 143 | 344 | 450 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commingled cash amounts owed to CSEs | 5,885 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commingled cash receivable from CSEs | 5,751 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount Company Would Be Required To Repay If Long Term Credit Ratings Were To Fall BelowAA MinusA2 Or Short Term Credit Ratings Were To Fall BelowA Minus1 Plus PMinus1 | 1,470 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intercompany Advances Eliminated In Consolidation | $ 2,616 | $ 1,006 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Summary of Significant Accounting Policies (Details)
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Feb. 22, 2012
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Summary of Significant Accounting Policies [Abstract] | |
Number Of Converted Shares Of Common Stock | 1,000 |
Financial Instruments (Fair value hedges) (Details) (Fair Value Hedges [Member], USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Fair value hedges | ||||
Hedge ineffectiveness gain (loss) | $ (113) | $ (131) | $ (300) | $ (334) |
Hedge amount excluded from assessment of effectiveness | insignificant amounts | insignificant amounts | insignificant amounts | insignificant amounts |
Interest Rate Contract [Member]
|
||||
Fair value hedges | ||||
Gain (loss) on derivatives | 441 | 5,708 | 1,226 | 5,318 |
Gain (loss) on hedged items | (552) | (5,829) | (1,514) | (5,634) |
Foreign Exchange Contract [Member]
|
||||
Fair value hedges | ||||
Gain (loss) on derivatives | 8 | 64 | (204) | 103 |
Gain (loss) on hedged items | $ (10) | $ (74) | $ 192 | $ (121) |
Investment Securities (Contractual maturities) (Details) (USD $)
In Millions, unless otherwise specified |
Sep. 30, 2012
|
---|---|
Amortized Cost [Member]
|
|
Investment [Line Items] | |
2012 | $ 2,220 |
2013-2016 | 7,399 |
2017-2021 | 4,752 |
2022 and later | 17,761 |
Estimated Fair Value [Member]
|
|
Investment [Line Items] | |
2012 | 2,245 |
2013-2016 | 7,391 |
2017-2021 | 5,270 |
2022 and later | $ 21,870 |
Summary of Significant Accounting Policies
|
9 Months Ended |
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Sep. 30, 2012
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Summary of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Notes to Condensed Financial Statements (Unaudited) 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General Electric Company (GE Company or GE) owns all of the common stock of General Electric Capital Corporation (GECC). Our financial statements consolidate all of our affiliates – companies that we control and in which we hold a majority voting interest. We also consolidate the economic interests we hold in certain businesses within companies in which we hold a voting equity interest and are majority owned by our parent, but which we have agreed to actively manage and control. See Note 1 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011 (2011 consolidated financial statements), which discusses our consolidation and financial statement presentation. GECC includes Commercial Lending and Leasing (CLL), Consumer, Real Estate, Energy Financial Services and GE Capital Aviation Services (GECAS).
On February 22, 2012, our former parent, General Electric Capital Services, Inc. (GECS), merged with and into GECC. The merger simplified GE's financial services' corporate structure by consolidating financial services entities and assets within our organization and simplifying Securities and Exchange Commission and regulatory reporting. Upon completion of the merger, (i) all outstanding shares of GECC common stock were cancelled, (ii) all outstanding GECS common stock and all GECS preferred stock held by GE were converted into an aggregate of 1,000 shares of GECC common stock, and (iii) all treasury shares of GECS and all outstanding preferred stock of GECS held by GECC were cancelled. As a result of the merger, GECC became the surviving corporation, assumed all of GECS' rights and obligations and became wholly-owned directly by GE.
Because both GECS and GECC were wholly-owned either directly or indirectly by GE, the merger was accounted for as a transfer of assets between entities under common control. Transfers of net assets or exchanges of shares between entities under common control are accounted for at historical value, and as if the transfer occurred at the beginning of the period. Prior period results are retrospectively adjusted to furnish comparative information. GECC's continuing operations now include the run-off insurance operations previously held and managed in our former parent, GECS, and which are reported in corporate items and eliminations. The operating businesses that are reported as segments, including CLL, Consumer, Real Estate, Energy Financial Services and GECAS, are not affected by the merger. Unless otherwise indicated, references to GECC and the GE Capital segment in this Form 10-Q Report relate to the entity or segment as they exist subsequent to the February 22, 2012 merger. In addition, during the first quarter of 2012, we announced the planned disposition of the Consumer mortgage lending business in Ireland (Consumer Ireland). This disposition is reported as a discontinued operation, which requires retrospective restatement of prior periods to classify the assets, liabilities and results of operations as discontinued operations.
GECC enters into various operating and financing arrangements with its parent, GE. Transactions between related companies are made on an arms-length basis, are eliminated and consist primarily of capital contributions from GE to GECC; GE customer receivables sold to GECC; GECC services for trade receivables management and material procurement; buildings and equipment (including automobiles) leased between GE and GECC; information technology (IT) and other services sold to GECC by GE; aircraft engines manufactured by GE that are installed on aircraft purchased by GECC from third-party producers for lease to others; and various investments, loans and allocations of GE corporate overhead costs.
We have reclassified certain prior-period amounts to conform to the current-period presentation. Unless otherwise indicated, information in these notes to the condensed, consolidated financial statements relates to continuing operations.
Accounting Changes On January 1, 2012, we adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2011-05, an amendment to Accounting Standards Codification (ASC) 220, Comprehensive Income. ASU 2011-05 introduces a new statement, the Consolidated Statement of Comprehensive Income, which begins with net earnings and adds or deducts other recognized changes in assets and liabilities that are not included in net earnings, but are reported directly to equity, under U.S. generally accepted accounting principles (GAAP). For example, unrealized changes in currency translation adjustments are included in the measure of comprehensive income but are excluded from net earnings. The amendments became effective for the first quarter 2012 financial statements. The amendments affect only the display of those components of equity categorized as other comprehensive income and do not change existing recognition and measurement requirements that determine net earnings.
On January 1, 2012, we adopted FASB ASU 2011-04, an amendment to ASC 820, Fair Value Measurements. ASU 2011-04 clarifies or changes the application of existing fair value measurements, including: that the highest and best use valuation premise in a fair value measurement is relevant only when measuring the fair value of nonfinancial assets; that a reporting entity should measure the fair value of its own equity instrument from the perspective of a market participant that holds that instrument as an asset; to permit an entity to measure the fair value of certain financial instruments on a net basis rather than based on its gross exposure when the reporting entity manages its financial instruments on the basis of such net exposure; that in the absence of a Level 1 input, a reporting entity should apply premiums and discounts when market participants would do so when pricing the asset or liability consistent with the unit of account; and that premiums and discounts related to size as a characteristic of the reporting entity's holding are not permitted in a fair value measurement. Adopting these amendments had no effect on the financial statements. For a description of how we estimate fair value and our process for reviewing fair value measurements classified as Level 3 in the fair value hierarchy, see Note 1 in our 2011 consolidated financial statements.
See Note 1 in our 2011 consolidated financial statements for a summary of our significant accounting policies.
Interim Period Presentation The condensed, consolidated financial statements and notes thereto are unaudited. These statements include all adjustments (consisting of normal recurring accruals) that we considered necessary to present a fair statement of our 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. It is suggested that these condensed, consolidated financial statements be read in conjunction with the financial statements and notes thereto included in our 2011 consolidated financial statements. We label our quarterly information using a calendar convention, that is, first quarter is labeled as ending on March 31, second quarter as ending on June 30, and third quarter as ending on September 30. It is our longstanding practice to establish interim quarterly closing dates using a fiscal calendar, which requires our businesses to close their books on either a Saturday or Sunday, depending on the business. The effects of this practice are modest and only exist within a reporting year. The fiscal closing calendar from 1993 through 2013 is available on our website, www.ge.com/secreports. |
Fair Value Measurements (Non-Recurring) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||
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Sep. 30, 2012
|
Sep. 30, 2012
Financing receivables and loans held for sale [Member]
|
Jun. 30, 2012
Financing receivables and loans held for sale [Member]
|
Sep. 30, 2011
Financing receivables and loans held for sale [Member]
|
Sep. 30, 2011
Financing receivables and loans held for sale [Member]
|
Sep. 30, 2012
Cost and equity method investments [Member]
|
Jun. 30, 2012
Cost and equity method investments [Member]
|
Sep. 30, 2011
Cost and equity method investments [Member]
|
Sep. 30, 2011
Cost and equity method investments [Member]
|
Sep. 30, 2012
Long Lived Assets, Including Real Estate [Member]
|
Jun. 30, 2012
Long Lived Assets, Including Real Estate [Member]
|
Sep. 30, 2011
Long Lived Assets, Including Real Estate [Member]
|
Sep. 30, 2011
Long Lived Assets, Including Real Estate [Member]
|
Sep. 30, 2012
Total [Member]
|
Jun. 30, 2012
Total [Member]
|
Sep. 30, 2011
Total [Member]
|
Sep. 30, 2011
Total [Member]
|
Sep. 30, 2012
Fair Value, Inputs, Level 2 [Member]
Financing receivables and loans held for sale [Member]
|
Dec. 31, 2011
Fair Value, Inputs, Level 2 [Member]
Financing receivables and loans held for sale [Member]
|
Sep. 30, 2012
Fair Value, Inputs, Level 2 [Member]
Cost and equity method investments [Member]
|
Dec. 31, 2011
Fair Value, Inputs, Level 2 [Member]
Cost and equity method investments [Member]
|
Sep. 30, 2012
Fair Value, Inputs, Level 2 [Member]
Long Lived Assets, Including Real Estate [Member]
|
Dec. 31, 2011
Fair Value, Inputs, Level 2 [Member]
Long Lived Assets, Including Real Estate [Member]
|
Sep. 30, 2012
Fair Value, Inputs, Level 2 [Member]
Total [Member]
|
Dec. 31, 2011
Fair Value, Inputs, Level 2 [Member]
Total [Member]
|
Sep. 30, 2012
Fair Value, Inputs, Level 3 [Member]
Financing receivables and loans held for sale [Member]
|
Dec. 31, 2011
Fair Value, Inputs, Level 3 [Member]
Financing receivables and loans held for sale [Member]
|
Sep. 30, 2012
Fair Value, Inputs, Level 3 [Member]
Cost and equity method investments [Member]
|
Dec. 31, 2011
Fair Value, Inputs, Level 3 [Member]
Cost and equity method investments [Member]
|
Sep. 30, 2012
Fair Value, Inputs, Level 3 [Member]
Long Lived Assets, Including Real Estate [Member]
|
Dec. 31, 2011
Fair Value, Inputs, Level 3 [Member]
Long Lived Assets, Including Real Estate [Member]
|
Sep. 30, 2012
Fair Value, Inputs, Level 3 [Member]
Total [Member]
|
Dec. 31, 2011
Fair Value, Inputs, Level 3 [Member]
Total [Member]
|
|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||||||||||||||||||||||
Fair value assets measured on non recurring basis | $ 1,862 | $ 482 | $ 158 | $ 4 | $ 0 | $ 483 | $ 1,343 | $ 969 | $ 1,501 | $ 3,798 | $ 5,159 | $ 336 | $ 402 | $ 1,484 | $ 3,254 | $ 5,618 | $ 8,815 | ||||||||||||||||
Adjustments To Assets Measured At Fair Value On Non Recurring Basis | $ (411) | $ (225) | $ (254) | $ (716) | $ (105) | $ (50) | $ (84) | $ (254) | $ (473) | $ (271) | $ (367) | $ (1,262) | $ (989) | $ (546) | $ (705) | $ (2,232) |