Shareowners' Equity

12 Months Ended

Dec. 31, 2013

Stockholders' Equity Note [Abstract]

Shareowners' Equity

NOTE 11. SHAREOWNERS' EQUITY

(In millions)	2013		2012		2011
Preferred stock issued	$	-	$	-	$	-
Common stock issued	$	-	$	-	$	-
Accumulated other comprehensive income
Balance at January 1	$	(940)	$	(2,096)	$	(3,711)
Other comprehensive income before reclassifications		433		1,312		78
Reclassifications from other comprehensive income		(527)		(156)		1,537
Other comprehensive income, net, attributable to GECC		(94)		1,156		1,615
Balance at December 31	$	(1,034)	$	(940)	$	(2,096)
Additional paid-in capital
Balance at January 1	$	31,586	$	27,628	$	27,627
Contributions and other		977		3,958		1
Balance at December 31	$	32,563	$	31,586	$	27,628
Retained earnings
Balance at January 1	$	51,244	$	51,578	$	45,068
Net earnings		6,204		6,215		6,510
Dividends and other		(6,283)		(6,549)		-
Balance at December 31	$	51,165	$	51,244	$	51,578
Total equity
GECC shareowners' equity balance at December 31	$	82,694	$	81,890	$	77,110
Noncontrolling interests balance at December 31		432		707		690
Total equity balance at December 31	$	83,126	$	82,597	$	77,800

During the second quarter of 2013, we issued 10,000 shares of non-cumulative perpetual preferred stock with a $0.01 par value for proceeds of $990 million. The preferred shares bear an initial fixed interest rate of 5.25% through June 15, 2023, bear a floating rate equal to three-month LIBOR plus 2.967% thereafter and are callable on June 15, 2023. Dividends on the GECC preferred stock are payable semi-annually, in June and December, with the first payment on this issuancemade in December 2013.

During 2012, we issued 40,000 shares of non-cumulative perpetual preferred stock with a $0.01 par value for proceeds of $3,960 million. Of these shares, 22,500 bear an initial fixed interest rate of 7.125% through June 15, 2022, bear a floating rate equal to three-month LIBOR plus 5.296% thereafter and are callable on June 15, 2022, and 17,500 shares bear an initial fixed interest rate of 6.25% through December 15, 2022, bear a floating rate equal to three-month LIBOR plus 4.704% thereafter and are callable on December 15, 2022. Dividends on the preferred stock are payable semi-annually, in June and December, with the first payment on these issuancesmade in December 2012.

During 2013 and 2012, we paid preferred stock dividends of $298 million and $123 million, respectively. During 2013 and 2012, we paid quarterly dividends of $1,930million and $1,926 million, respectively, and special dividends of $4,055million and $4,500 million, respectively, to GE. No dividends were paid during 2011.

At December 31, 2011, all of our outstanding common stock was owned by our former parent, GECS, however, upon the completion of the merger, (i) all outstanding shares of GECC common stock were cancelled, (ii) all outstanding shares of common stock of GECS and all outstanding shares of preferred stock of GECS held by GE were converted into an aggregate of 1,000 shares of common stock of GECC and (iii) all treasury shares of GECS and all outstanding shares of preferred stock of GECS held by GECC were cancelled. As a result, GECC, which previously has been an indirect wholly-owned subsidiary of GE, became a direct wholly-owned subsidiary of GE. Our financial statements consolidate all of our affiliates – entities in which we have a controlling financial interest, most often because we hold a majority voting interest.

Activities of our financial services consolidated affiliates include lending, leasing and other traditional financial services transactions and relate to approximately $169.2 billion of our total assets. These consolidated affiliates may be subject to regulation by various national authorities including banking, financial services and insurance regulators, and are restricted from remitting certain funds to us in the form of dividends or loans. However, such funds are available for use by these affiliates, without restriction, to repay borrowings, to fund new loans, or for other normal business purposes. Our regulated bank subsidiaries are also subject to minimum regulatory capital requirements and we have also committed to maintain the total capital level for our run-off insurance operations at 300% of the regulatory minimum required level. At December 31, 2013, restricted net assets of our financial services consolidated affiliates were approximately $23.1 billion.

The aggregate statutory capital and surplus of the insurance activities totaled $2.4 billion and $1.6 billion at December 31, 2013 and 2012, respectively. Accounting practices prescribed by statutory authorities are used in preparing statutory statements.

Accumulated other comprehensive income

(In millions)		2013		2012		2011
Investment securities
Balance at January 1	$	673	$	(33)	$	(639)
OCI before reclassifications – net of deferred taxes of $(386), $386 and $341(a)		(675)		685		575
Reclassifications from OCI – net of deferred taxes of $215, $12 and $1		306		22		31
Other comprehensive income(b)		(369)		707		606
Less: OCI attributable to noncontrolling interests		(5)		1		-
Balance at December 31	$	309	$	673	$	(33)
Currency translation adjustments
Balance at January 1	$	(131)	$	(399)	$	(1,411)
OCI before reclassifications –net of deferred taxes of $(655), $(261) and $(705)		247		411		603
Reclassifications from OCI – net of deferred taxes of $791, $55 and $357		(810)		(131)		381
Other comprehensive income(b)		(563)		280		984
Less: OCI attributable to noncontrolling interests		(7)		12		(28)
Balance at December 31	$	(687)	$	(131)	$	(399)
Cash flow hedges
Balance at January 1	$	(746)	$	(1,101)	$	(1,281)
OCI before reclassifications – net of deferred taxes of $235, $378 and $248		521		434		(910)
Reclassifications from OCI – net of deferred taxes of $(158), $(250) and $204		(66)		(80)		1,104
Other comprehensive income(b)		455		354		194
Less: OCI attributable to noncontrolling interests		2		(1)		14
Balance at December 31	$	(293)	$	(746)	$	(1,101)
Benefit plans
Balance at January 1	$	(736)	$	(563)	$	(380)
Prior service credit (cost) – net of deferred taxes of $4, $0 and $(3)		24		-		(6)
Net actuarial gain (loss) – net of deferred taxes of $156, $(86) and $(104)		306		(206)		(198)
Prior service cost amortization – net of deferred taxes of $0, $0 and $0		-		-		(2)
Net actuarial loss amortization – net of deferred taxes of $16, $10 and $11		43		33		23
Other comprehensive income(b)		373		(173)		(183)
Less: OCI attributable to noncontrolling interests		-		-		-
Balance at December 31	$	(363)	$	(736)	$	(563)
Accumulated other comprehensive income at December 31	$	(1,034)	$	(940)	$	(2,096)

• Includes adjustments of $(1,171) million, $527 million and $786 million in 2013, 2012 and 2011, respectively, to deferred acquisition costs, present value of future profits, and investment contracts, insurance liabilities and insurance annuity benefits in our run-off insurance operations to reflect the effects that would have been recognized had the related unrealized investment securities holding gains and losses actually been realized.
• Total other comprehensive income was $(104) million, $1,168 million and $1,601 million in 2013, 2012 and 2011, respectively.

Reclassification out of AOCI
(In millions)
							Statement of Earnings
Components of AOCI		2013		2012		2011	Caption
Available-for-sale securities
Realized gains (losses) on
sale/impairment of securities	$	(521)	$	(34)	$	(32)	Revenues from services
		215		12		1	Tax (expense) or benefit
	$	(306)	$	(22)	$	(31)	Net of tax
Currency translation adjustments
Gains (losses) on dispositions	$	19	$	76	$	(738)	Costs and expenses
		791		55		357	Tax (expense) or benefit
	$	810	$	131	$	(381)	Net of tax
Cash flow hedges
Gains (losses) on interest rate derivatives	$	(364)	$	(494)	$	(821)	Interest
Foreign exchange contracts		588		824		(487)	(a)
		224		330		(1,308)	Total before tax
		(158)		(250)		204	Tax (expense) or benefit
	$	66	$	80	$	(1,104)	Net of tax
Benefit plan items
Amortization of prior service cost	$	-	$	-	$	2	(b)
Amortization of actuarial gains (losses)		(59)		(43)		(34)	(b)
		(59)		(43)		(32)	Total before tax
		16		10		11	Tax (expense) or benefit
	$	(43)	$	(33)	$	(21)	Net of tax
Total reclassification adjustments	$	527	$	156	$	(1,537)	Net of tax

• Includes $608 million,$894million and $(310) millionin revenues from services and $(20) million, $(70)million and $(177) million in interest for the years ended December 31, 2013, 2012 and 2011, respectively.
• Amortization of actuarial gains and losses out of AOCI are included in the computation of net periodic pension costs.

Noncontrolling Interests

Noncontrolling interests in equity of consolidated affiliates includes common shares in consolidated affiliates and preferred stock issued by our affiliates.The balance is summarized as follows.

December 31 (In millions)	2013		2012
Noncontrolling interests in consolidated affiliates(a)	$	432	$	707

• Consisted of a number of individually insignificant noncontrolling interests in partnerships and consolidated affiliates.

Changes to noncontrolling interests are as follows.

(In millions)	2013		2012		2011
Beginning balance	$	707	$	690	$	1,164
Net earnings		53		63		127
Dispositions(a)		(174)		0		(586)
Dividends		(48)		(19)		(20)
Other (including AOCI)		(106)		(27)		5
Ending balance	$	432	$	707	$	690

• Includesnoncontrolling interests related to the sale of GE SeaCoof $311 million and the redemption of Heller Financial preferred stock of $275 million in 2011.