-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BZgNqKWcpU7V1HEGo1l+LgRi9lFWwHc92GucaZkMfVKjyKr8Q0rcfaB4wKDBIgZL bugz9m+J4RSXAgdDtGKPEg== 0000040554-97-000074.txt : 19971027 0000040554-97-000074.hdr.sgml : 19971027 ACCESSION NUMBER: 0000040554-97-000074 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970927 FILED AS OF DATE: 19971024 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENERAL ELECTRIC CAPITAL CORP CENTRAL INDEX KEY: 0000040554 STANDARD INDUSTRIAL CLASSIFICATION: PERSONAL CREDIT INSTITUTIONS [6141] IRS NUMBER: 131500700 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 333-22265 FILM NUMBER: 97700575 BUSINESS ADDRESS: STREET 1: 260 LONG RIDGE RD CITY: STAMFORD STATE: CT ZIP: 06927 BUSINESS PHONE: 2033574000 MAIL ADDRESS: STREET 1: 260 LONG RIDGE ROAD CITY: STAMFORD STATE: CT ZIP: 06927 FORMER COMPANY: FORMER CONFORMED NAME: GENERAL ELECTRIC CREDIT CORP DATE OF NAME CHANGE: 19871216 10-Q 1 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ----------- FORM 10-Q ----------- | X | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 27, 1997 OR | | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ ------------------------- Commission file number 1-6461 ------------------------- GENERAL ELECTRIC CAPITAL CORPORATION (Exact name of registrant as specified in its charter) NEW YORK 13-1500700 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 260 LONG RIDGE ROAD, STAMFORD, CONNECTICUT 06927 (Address of principal executive offices) (Zip Code) (203) 357-4000 (Registrant's telephone number, including area code) ------------------------- Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes |X| No | | At October 23, 1997, 3,837,825 shares of common stock with a par value of $200 were outstanding. REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM 10-Q WITH THE REDUCED DISCLOSURE FORMAT. TABLE OF CONTENTS PAGE -------- PART I - FINANCIAL INFORMATION. Item 1. Financial Statements ............................. 1 Item 2. Management's Discussion and Analysis of Results of Operations ....................................... 5 Exhibit 12. Computation of Ratio of Earnings to Fixed Charges and Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends ...... 8 PART II - OTHER INFORMATION. Item 6. Exhibits and Reports on Form 8-K ................. 9 Signatures ..................................................... 10 Index to Exhibits .............................................. 11 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS.
GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES CONDENSED STATEMENT OF CURRENT AND RETAINED EARNINGS (Unaudited) THREE MONTHS ENDED NINE MONTHS ENDED -------------------- -------------------- SEPTEMBER SEPTEMBER SEPTEMBER SEPTEMBER (In millions) 27, 1997 28, 1996 27, 1997 28, 1996 -------- -------- -------- -------- EARNED INCOME .................. $ 8,377 $ 7,008 $ 23,808 $ 18,696 -------- -------- -------- -------- EXPENSES Interest ....................... 1,832 1,685 5,323 5,075 Operating and administrative ... 3,567 2,583 9,447 6,205 Insurance losses and policyholder and annuity benefits ...................... 1,227 821 3,482 2,213 Provision for losses on financing receivables ......... 371 254 1,020 695 Depreciation and amortization of buildings and equipment and equipment on operating leases . 623 556 1,751 1,569 Minority interest in net earnings of consolidated affiliates .................... 13 17 27 59 -------- -------- -------- -------- 7,633 5,916 21,050 15,816 -------- -------- -------- -------- EARNINGS Earnings before income taxes ... 744 1,092 2,758 2,880 Provision for income taxes ..... (176) (344) (775) (900) -------- -------- -------- -------- NET EARNINGS ................... 568 748 1,983 1,980 Dividends ...................... (529) (272) (1,186) (746) Retained earnings at beginning of period ..................... 11,436 9,695 10,678 8,937 -------- -------- -------- -------- RETAINED EARNINGS AT END OF PERIOD ........................ $ 11,475 $ 10,171 $ 11,475 $ 10,171 ======== ======== ======== ========
See Notes to Condensed, Consolidated Financial Statements. 1 ITEM 1. FINANCIAL STATEMENTS (Continued).
GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES CONDENSED STATEMENT OF FINANCIAL POSITION SEPTEMBER DECEMBER (In millions) 27, 1997 31, 1996 -------- -------- (Unaudited) ASSETS Cash and equivalents ................................... $ 2,839 $ 3,074 Investment securities .................................. 49,097 44,340 Financing receivables: Time sales and loans, net of deferred income ......... 61,320 62,832 Investment in financing leases, net of deferred income 38,391 39,575 -------- -------- 99,711 102,407 Allowance for losses on financing receivables ........ (2,624) (2,693) -------- -------- Financing receivables - net ........................ 97,087 99,714 Other receivables - net ................................ 10,684 8,456 Equipment on operating leases (at cost), less accumulated amortization of $5,726 and $5,625 ......... 18,102 16,134 Intangible assets ...................................... 7,829 7,594 Other assets ........................................... 24,790 21,504 -------- -------- TOTAL ASSETS ..................................... $210,428 $200,816 ======== ======== LIABILITIES AND EQUITY Short-term borrowings .................................. $ 79,594 $ 74,971 Long-term borrowings: Senior ............................................... 44,320 46,124 Subordinated ......................................... 697 697 Insurance liabilities, reserves and annuity benefits ... 47,443 43,263 Other liabilities ...................................... 12,698 12,084 Deferred income taxes .................................. 7,820 7,472 -------- -------- Total liabilities ................................ 192,572 184,611 -------- -------- Minority interest in equity of consolidated affiliates . 770 679 -------- -------- Capital stock .......................................... 770 770 Additional paid-in capital ............................. 4,080 4,024 Retained earnings ...................................... 11,475 10,678 Unrealized gains on investment securities .............. 894 149 Foreign currency translation adjustments ............... (133) (95) -------- -------- Total equity ..................................... 17,086 15,526 -------- -------- TOTAL LIABILITIES AND EQUITY ..................... $210,428 $200,816 ======== ========
See Notes to Condensed, Consolidated Financial Statements. 2 ITEM 1. FINANCIAL STATEMENTS (Continued).
GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES CONDENSED STATEMENT OF CASH FLOWS (Unaudited) NINE MONTHS ENDED -------------------- SEPTEMBER SEPTEMBER (In millions) 27, 1997 28, 1996 -------- -------- CASH FLOWS FROM OPERATING ACTIVITIES Net earnings ........................................... $ 1,983 $ 1,980 Adjustments to reconcile net earnings to cash provided from operating activities: Provision for losses on financing receivables ........ 1,020 695 Depreciation and amortization of buildings and equipment and equipment on operating leases ......... 1,751 1,569 Other - net .......................................... 1,203 1,758 -------- -------- Cash provided from operating activities .......... 5,957 6,002 -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES Increase in loans to customers ......................... (38,386) (38,262) Principal collections from customers ................... 36,328 39,080 Investment in assets on financing leases ............... (9,943) (9,249) Principal collections on financing leases .............. 11,559 8,345 Net decrease (increase) in credit card receivables ..... 2,335 (950) Buildings and equipment and equipment on operating leases: - additions ........................................ (4,617) (4,058) - dispositions ..................................... 1,867 677 Payments for principal businesses purchased, net of cash acquired ......................................... (1,532) (2,320) Purchases of investment securities by insurance affiliates and annuity businesses ..................... (7,892) (5,396) Dispositions and maturities of investment securities by insurance affiliates and annuity businesses ........ 6,828 5,203 Other - net ............................................ (4,456) (3,702) -------- -------- Cash used for investing activities ............... (7,909) (10,632) -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES Net change in borrowings (maturities 90 days or less) .. 6,861 7,312 Newly issued debt - short-term (maturities 91-365 days) 3,240 3,693 - long-term senior .................. 12,099 12,998 Proceeds - non-recourse, leveraged lease debt .......... 129 505 Repayments and other reductions: - short-term (maturities 91-365 days) (18,486) (17,082) - long-term senior .................. (861) (780) Principal payments - non-recourse, leveraged lease debt (262) (227) Proceeds from sales of investment and annuity contracts 3,334 1,982 Redemption of investment and annuity contracts ......... (3,251) (1,689) Dividends paid ......................................... (1,186) (746) Issuance of variable cumulative preferred stock by consolidated affiliate ................................ 100 125 -------- -------- Cash provided from financing activities .......... 1,717 6,091 -------- -------- (DECREASE) INCREASE IN CASH AND EQUIVALENTS ............ (235) 1,461 CASH AND EQUIVALENTS AT BEGINNING OF PERIOD ............ 3,074 1,316 -------- -------- CASH AND EQUIVALENTS AT END OF PERIOD .................. $ 2,839 $ 2,777 ======== ========
See Notes to Condensed, Consolidated Financial Statements. 3 ITEM 1. FINANCIAL STATEMENTS (Continued). GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES NOTES TO CONDENSED, CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. The accompanying condensed quarterly financial statements represent the adding together of General Electric Capital Corporation and all majority-owned and controlled affiliates (collectively called "the Corporation" or "GECC"). All significant transactions among the parent and consolidated affiliates have been eliminated. Certain prior period data have been reclassified to conform to the current period presentation. 2. The condensed, consolidated quarterly financial statements are unaudited. These statements include all adjustments (consisting of normal recurring accruals) considered necessary by management to present a fair statement of the results of operations, financial position and cash flows. The results reported in these condensed, consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. 3. The Corporation has adopted Statement of Financial Accounting Standards ("SFAS") No. 125, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. Among other things, this Statement distinguishes transfers of financial assets that are sales from transfers that are secured borrowings, based on control of the transferred assets. SFAS No. 125 applies to all transactions occurring after December 31, 1996; thus, adoption did not have an effect on the financial position or results of operations of the Corporation. 4. The Corporation has a noncontrolling investment in the common stock of Montgomery Ward Holding Corp. ("MWHC"), which, together with its wholly-owned subsidiary, Montgomery Ward & Co., Incorporated ("MWC"), is engaged in retail merchandising and direct response marketing (conducted primarily through Signature Financial/Marketing, Inc. ("Signature"), which markets consumer club and insurance products). On July 7, 1997, MWHC, MWC and certain of their affiliates (excluding Signature), filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. As a result, loans to MWHC and affiliates became "impaired" loans, as defined by generally accepted accounting principles, because, due to the automatic stay in bankruptcy, the Corporation is not receiving current interest payments on its loans and , in management's judgment, it is therefore probable that the Corporation will be unable to collect all amounts due according to original contractual terms of the loan agreements (refer to Management's Discussion and Analysis of Results of Operations, Other Matters). 4 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS. OVERVIEW Net earnings for the nine months of 1997 were $1,983 million, a $3 million increase over the first nine months of 1996. The Corporation's contribution to its parent, General Electric Capital Services, Inc. ("GECS"), after payment of dividends on its variable cumulative preferred stock, was $1,926 million, a $2 million increase over the comparable 1996 period. Earnings of the lending, leasing and equipment management businesses are significantly influenced by the level of invested assets, the related financing spreads (the excess of rates earned -- yields -- over rates on borrowings) and the quality of those assets. Earnings for these businesses were impacted by higher losses associated with the Corporation's equity investment in Montgomery Ward Holding Corp. ("MWHC"), (refer to Other Matters below), as well as increased residual losses on automobiles. These impacts were partially offset by gains recognized on sales of assets, as well as earnings growth from the consumer savings and insurance operations, principally reflecting the effects of acquisitions during 1996. The Specialty Insurance segment also contributed to the increase in net earnings primarily due to increased premium and investment income. OPERATING RESULTS EARNED INCOME from all sources was $23,808 million for the first nine months of 1997, a 27% increase compared with $18,696 million for the first nine months of 1996. Earned income from the equipment management, consumer services, mid-market financing and specialized financing businesses increased $4,651 million (27%) over the comparable prior-year period. A significant portion of this increase was the contribution provided by the computer equipment businesses and the consumer savings and insurance businesses acquired during 1996. The increase also reflected a higher average level of invested assets, resulting from both origination volume and acquisitions of portfolios and businesses. Earned income was also impacted by higher losses associated with the Corporation's equity investment in MWHC, as well as increased residual losses on automobiles. These impacts were offset by gains recognized on securitizations and other sales of assets. Earned income of the Specialty Insurance segment increased $457 million (31%) to $1,909 million for the first nine months of 1997 compared with the first nine months of 1996 reflecting growth in premium and investment income. INTEREST EXPENSE for the first nine months of 1997 was $5,323 million, 5% higher than for the first nine months of 1996. The increase reflected the effects of higher average borrowings used to finance asset growth, offset by the effects of lower average interest rates. The composite interest rate on the Corporation's borrowings for the first nine months of 1997 was 6.02% compared with 6.26% in the first nine months of 1996. OPERATING AND ADMINISTRATIVE EXPENSES were $9,447 million for the first nine months of 1997, a 52% increase over the first nine months of 1996. The increase primarily reflected the inclusion of costs of sales and services of the computer equipment businesses acquired in the third quarter of 1996. The remainder of the increase resulted from other costs associated with businesses and portfolios acquired over the past year and higher investment levels. INSURANCE LOSSES AND POLICYHOLDER AND ANNUITY BENEFITS increased 57% to $3,482 million for the first nine months of 1997, compared with $2,213 million for the first nine months of 1996. The increase primarily reflected the consumer savings and insurance businesses acquired in 1996 and growth in origination volume. PROVISION FOR LOSSES ON FINANCING RECEIVABLES increased to $1,020 million for the first nine months of 1997 from $695 million for the first nine months of 1996. These provisions principally related to private-label and bank credit cards in the Consumer Services segment which are discussed below under Portfolio Quality. The increase principally reflects higher average receivable balances as well as increased delinquencies in the consumer portfolio, consistent with industry experience. 5 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS (Continued). DEPRECIATION AND AMORTIZATION OF BUILDINGS AND EQUIPMENT AND EQUIPMENT ON OPERATING LEASES increased $182 million (12%) to $1,751 million for the first nine months of 1997 compared with $1,569 million for the first nine months of 1996. The increase was principally the result of higher levels of equipment on operating leases, primarily reflecting a shift in auto lease volume from financing leases to operating leases as well as origination volume and acquisition growth. PROVISION FOR INCOME TAXES was $775 million for the first nine months of 1997 (an effective tax rate of 28.1%), compared with $900 million for the first nine months of 1996 (an effective tax rate of 31.3%). The lower provision for income taxes primarily reflected decreased pre-tax earnings subject to statutory rates and the impact on the effective tax rate of decreased taxes on foreign earnings and increased tax credits. PORTFOLIO QUALITY THE PORTFOLIO OF FINANCING RECEIVABLES, before allowance for losses, decreased to $99.7 billion at September 27, 1997 from $102.4 billion at the end of 1996, principally as a result of securitizations of consumer receivables. Financing receivables are the financing segment's largest asset and its primary source of revenues. Related allowances for losses at September 27, 1997, aggregated $2.6 billion (2.63% of receivables - the same as at the end of 1996) and are, in management's judgment, appropriate given the risk profile of the portfolio. A discussion about the quality of certain elements of the portfolio of financing receivables follows. "Nonearning" receivables are those that are 90 days or more delinquent and "reduced earning" receivables are commercial receivables whose terms have been restructured to a below-market yield. Refer to Other Matters for a discussion of receivables related to MWHC and affiliates. The nonearning and reduced earning receivable balances and the write-off amounts discussed below exclude amounts related to MWHC and affiliates. CONSUMER RECEIVABLES, primarily credit card and personal loans and auto loans and leases, were $43.4 billion at September 27, 1997, a decrease of $2.8 billion from the end of 1996. Nonearning receivables increased to $1,010 million at September 27, 1997, from $926 million at December 31, 1996. Write-offs of consumer receivables increased to $912 million for the first nine months of 1997, compared with $622 million for the first nine months of 1996. This increase was primarily attributable to higher average receivable balances resulting from a combination of origination volume and acquisitions of businesses and portfolios as well as higher delinquencies, consistent with overall industry experience. COMMERCIAL REAL ESTATE LOANS classified as financing receivables were $11.8 billion at September 27, 1997, compared with $12.1 billion at year-end 1996. Nonearning and reduced earning receivables increased to $198 million at September 27, 1997, from $158 million at December 31, 1996. Write-offs of commercial real estate loans were $21 million for the first nine months of 1997, compared with $33 million for the first nine months of 1996. At September 27, 1997, the commercial real estate portfolio also included, in other assets, $1.5 billion of assets acquired for resale from various financial institutions ($1.6 billion at year-end 1996) and $2.4 billion of investments in real estate ventures ($2.5 billion at year-end 1996). OTHER FINANCING RECEIVABLES, totaling $44.5 billion at September 27, 1997 ($44.1 billion at December 31, 1996), consisted of a diverse commercial, industrial and equipment loan and lease portfolio. Related nonearning and reduced-earning receivables were $219 million at September 27, 1997, compared with $313 million at year-end 1996. The Corporation held loans and leases to commercial airlines amounting to $8.4 billion at September 27, 1997, up from $8.2 billion at the end of 1996. 6 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS (Continued). OTHER MATTERS The Corporation has a noncontrolling investment in the common stock of Montgomery Ward Holding Corp. ("MWHC"), which, together with its wholly-owned subsidiary, Montgomery Ward & Co. Incorporated ("MWC"), is engaged in retail merchandising and direct response marketing (conducted primarily through Signature Financial/Marketing, Inc. ("Signature"), which markets consumer club and insurance products). On July 7, 1997, MWHC, MWC and certain of their affiliates filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. MWHC reported losses from operations during the first nine months of 1997, and the Corporation's share of such losses was $582 million before income taxes. The Corporation recorded its share of losses by reducing its investments in MWHC, resulting in the writing off of its investments in MWHC common and preferred stock. In addition to those stock investments, the Corporation has other investments, primarily inventory financing, that resulted from ordinary course of business transactions with MWHC and its affiliates. Such investments, after reduction for the Corporation's share of losses as discussed above, amounted to approximately $833 million at September 27, 1997. No impairment writedown was considered necessary for these remaining investments as of September 27, 1997, although the Corporation has suspended income recognition on these investments. Management continues to monitor these investments carefully for recoverability. Subsequent to the MWHC bankruptcy filing, the Corporation announced a $1,000 million Debtor-In-Possession financing commitment ("the commitment"), subject to certain conditions, to MWHC for the purchase of inventory and to cover other costs. The Corporation has syndicated a majority of the commitment. Approximately $71 million of the commitment, which has an administrative priority in bankruptcy, was utilized as of September 27, 1997. The Corporation also provides financing to customers of MWHC and affiliates through the Corporation's wholly-owned affiliates, Montgomery Ward Credit Corporation and Monogram Credit Card Bank of Georgia. These receivables, which represent revolving credit card transactions directly with customers of MWHC and affiliates, aggregated approximately $4,294 million at September 27, 1997, including $1,718 million that have been sold with recourse by the Corporation's affiliates. The obligations of customers with respect to these receivables are not affected by the Chapter 11 bankruptcy filing. MWHC and its affiliates, under new management in 1997, are continuing their restructuring efforts as well as developing a plan of reorganization. Restructuring plans are likely to include the implementation of a revised merchandising strategy and the closing and/or upgrading of selected retail stores. Signature is not included in the Chapter 11 bankruptcy filing, and the possibility of sale of Signature will continue to be evaluated. 7 EXHIBIT 12
GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS NINE MONTHS ENDED SEPTEMBER 27, 1997 (Unaudited) RATIO OF EARNINGS TO COMBINED FIXED RATIO OF CHARGES EARNINGS AND TO PREFERRED FIXED STOCK (Dollar amounts in millions) CHARGES DIVIDENDS -------- -------- Net earnings ........................................... $ 1,983 $ 1,983 Provision for income taxes ............................. 775 775 Minority interest in net earnings of consolidated affiliates ............................................ 27 27 -------- -------- Earnings before provision for income taxes and minority interest ..................................... 2,785 2,785 -------- -------- Fixed charges: Interest ............................................. 5,401 5,401 One-third of rentals ................................. 170 170 -------- -------- Total fixed charges .................................... 5,571 5,571 -------- -------- Less interest capitalized, net of amortization ......... 38 38 -------- -------- Earnings before provision for income taxes and minority interest, plus fixed charges .......................... $ 8,318 $ 8,318 ======== ======== Ratio of earnings to fixed charges ..................... 1.49 ======== Preferred stock dividend requirements .................. $ 57 Ratio of earnings before provision for income taxes to net earnings .......................................... 1.39 Preferred stock dividend factor on pre-tax basis ....... 79 Fixed charges .......................................... 5,571 -------- Total fixed charges and preferred stock dividend requirements .......................................... $ 5,650 ======== Ratio of earnings to combined fixed charges and preferred stock dividends ............................. 1.47 ========
For purposes of computing the ratios, fixed charges consist of interest on all indebtedness and one-third of rentals, which management believes is a reasonable approximation of the interest factor of such rentals. 8 PART II--OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. a. EXHIBITS. Exhibit 12. Computation of ratio of earnings to fixed charges and computation of ratio of earnings to combined fixed charges and preferred stock dividends. Exhibit 27. Financial Data Schedule (filed electronically only). b. REPORTS ON FORM 8-K. None. 9 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. GENERAL ELECTRIC CAPITAL CORPORATION ------------------------------------ (Registrant) Date: October 24, 1997 By: /s/ J.A. Parke --------------------------------- J.A. Parke, Senior Vice President, Finance (Principal Financial Officer) Date: October 24, 1997 By: /s/ J.C. Amble ---------------------------------- J.C. Amble, Vice President and Controller (Principal Accounting Officer) 10 GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES INDEX TO EXHIBITS EXHIBIT NO. PAGE ------------- ------ 12 Computation of ratio of earnings to fixed charges and computation of ratio of earnings to combined fixed charges and preferred stock dividends ....... 8 27 Financial Data Schedule (filed electronically only) 11 EX-12 2 EXHIBIT 12 EXHIBIT 12
GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS NINE MONTHS ENDED SEPTEMBER 27, 1997 (Unaudited) RATIO OF EARNINGS TO COMBINED FIXED RATIO OF CHARGES EARNINGS AND TO PREFERRED FIXED STOCK (Dollar amounts in millions) CHARGES DIVIDENDS -------- -------- Net earnings ........................................... $ 1,983 $ 1,983 Provision for income taxes ............................. 775 775 Minority interest in net earnings of consolidated affiliates ............................................ 27 27 -------- -------- Earnings before provision for income taxes and minority interest ..................................... 2,785 2,785 -------- -------- Fixed charges: Interest ............................................. 5,401 5,401 One-third of rentals ................................. 170 170 -------- -------- Total fixed charges .................................... 5,571 5,571 -------- -------- Less interest capitalized, net of amortization ......... 38 38 -------- -------- Earnings before provision for income taxes and minority interest, plus fixed charges .......................... $ 8,318 $ 8,318 ======== ======== Ratio of earnings to fixed charges ..................... 1.49 ======== Preferred stock dividend requirements .................. $ 57 Ratio of earnings before provision for income taxes to net earnings .......................................... 1.39 Preferred stock dividend factor on pre-tax basis ....... 79 Fixed charges .......................................... 5,571 -------- Total fixed charges and preferred stock dividend requirements .......................................... $ 5,650 ======== Ratio of earnings to combined fixed charges and preferred stock dividends ............................. 1.47 ========
For purposes of computing the ratios, fixed charges consist of interest on all indebtedness and one-third of rentals, which management believes is a reasonable approximation of the interest factor of such rentals. EX-27 3 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 27, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 0000040554 GENERAL ELECTRIC CAPITAL CORPORATION 1,000,000 9-MOS DEC-31-1997 SEP-27-1997 2,839 49,097 99,711 2,624 0 0 27,303 7,083 210,428 0 45,017 0 2 768 16,316 210,428 0 23,808 0 0 9,447 1,020 5,323 2,758 775 1,983 0 0 0 1,983 0.00 0.00
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