EX-99.B 4 ex99b100208.htm GECC EX 99B 10/02/08 ex99b100208.htm
Exhibit 99(b)
 

 

 
Revised Segment Results, with Annual Results for the Three Years Ended December 31, 2007, and Quarterly Results for the Six Quarters Ended June 30, 2008 (Pages 1-9)
 

 

 

 
 
 

Exhibit 99(b)
 
Revised Segment Results, with Annual Results for the Three Years Ended December 31, 2007, and Quarterly Results for the Six Quarters Ended June 30, 2008 (Pages 1-9)
 
 
GENERAL ELECTRIC CAPITAL CORPORATION
 
Segment Operations
 
Revenues and segment profit of our operating segments are shown below. As described in our Form 8-K filed July 25, 2008, the General Electric Company (GE), our ultimate parent, reorganized its businesses effective July 25, 2008. GE believes that this new organizational structure simplifies the company and aligns businesses for growth and efficiency.
 
GE’s five operating segments as of July 25, 2008, were as follows:
 
·  
GE Technology Infrastructure – the combination of GE’s previous Healthcare segment, the Aviation and Transportation businesses of our previous GE Infrastructure segment and the Enterprise Solutions business of GE’s previous Industrial Products segment
 
·  
GE Energy Infrastructure – the combination of GE’s Energy (including GE’s motors business which was previously reported in GE’s Industrial Products segment), Oil & Gas and Water & Process Technologies businesses of our previous GE Infrastructure segment
 
·  
GE Capital Finance – the combination of our previous GE Commercial Finance and GE Money segments and the Aviation Financial Services, Transportation Finance and Energy Financial Services businesses of our previous GE Infrastructure segment
 
·  
GE NBC Universal – unchanged
 
·  
GE Consumer & Industrial – the GE Consumer & Industrial business (excluding the motors business) of GE’s previous Industrial Products segment
 
As a result of our ultimate parent’s reorganization, our chief executive officer also reorganized our businesses into five operating segments based upon how our management allocates resources and assesses performance as follows:
 
·  
Commercial Lending and Leasing (CLL) – our previous GE Commercial Finance segment less our Real Estate business
 
·  
Real Estate – unchanged, previously reported in our GE Commercial Finance segment
 
·  
GE Money – unchanged
 
·  
GECAS – the combination of Aviation Financial Services and Transportation Finance, previously reported in our GE Infrastructure segment
 
·  
Energy Financial Services – previously reported in our GE Infrastructure segment
 

 
(1)
 

Segment profit is determined based on internal performance measures used by the Chairman to assess the performance of each business in a given period. In connection with that assessment, the Chairman may exclude matters such as charges for restructuring; rationalization and other similar expenses; in-process research and development and certain other acquisition-related charges and balances; technology and product development costs; certain gains and losses from dispositions; and litigation settlements or other charges, responsibility for which preceded the current management team.
 
Segment profit always excludes the effects of principal pension plans, results reported as discontinued operations and accounting changes. Segment profit includes interest and other financial charges and income taxes, which we sometimes refer to as “net earnings”.
 
All periods presented have been reclassified to conform to the changes in our organization effective July 25, 2008, and the effects of reporting our Japanese mortgage and card businesses as discontinued operations. In addition to providing information on segments in their entirety, we have also provided supplemental information for the Capital Solutions business within the CLL segment for greater clarity.
 
Consolidated
 
For the years ended December 31 (In millions)
2007
  
2006
  
2005
  
             
Revenues
                  
CLL
$
27,267
  
$
25,833
  
$
23,781
  
Real Estate
  
7,021
    
5,020
    
3,492
  
GE Money
  
24,769
    
19,508
    
16,754
  
GECAS
  
4,839
    
4,353
    
3,695
  
Energy Financial Services
  
2,405
    
1,664
    
1,349
  
Total segment revenues
  
66,301
    
56,378
    
49,071
  
GECC corporate items and eliminations
  
1,661
    
1,929
    
2,608
  
Less portion of revenues not included in GECC
  
(963
)
  
(825
)
  
(618
)
Total revenues in GECC
$
66,999
  
$
57,482
  
$
51,061
  
                   
                   
Segment profit
                  
CLL
$
3,801
  
$
3,503
  
$
3,252
  
Real Estate
  
2,285
    
1,841
    
1,282
  
GE Money
  
4,269
    
3,231
    
2,452
  
GECAS
  
1,211
    
1,174
    
829
  
Energy Financial Services
  
677
    
648
    
599
  
Total segment profit
  
12,243
    
10,397
    
8,414
  
GECC corporate items and eliminations
  
192
    
55
    
305
  
Less portion of net earnings not included in GECC
  
(489
)
  
(357
)
  
(291
)
Earnings in GECC from continuing operations
  
11,946
    
10,095
    
8,428
  
Earnings (loss) in GECC from discontinued operations,
                  
net of taxes
  
(2,131
)
  
291
    
1,498
  
Total net earnings in GECC
$
9,815
  
$
10,386
  
$
9,926
  

 

 
(2)
 


 
 
2008
  
(in millions)
First
quarter 
  
Second
quarter
  
Six
months
  
             
Revenues
                  
CLL
$
6,683
  
$
7,295
  
$
13,978
  
Real Estate
  
1,883
    
1,964
    
3,847
  
GE Money
  
6,363
    
6,578
    
12,941
  
GECAS
  
1,270
    
1,155
    
2,425
  
Energy Financial Services
  
770
    
989
    
1,759
  
Total segment revenues
  
16,969
    
17,981
    
34,950
  
GECC corporate items and eliminations
  
308
    
202
    
510
  
Less portion of revenues not included in GECC
  
(154
)
  
(34
)
  
(188
)
Total revenues in GECC
$
17,123
  
$
18,149
  
$
35,272
  
                   
                   
Segment profit
                  
CLL
$
694
  
$
917
  
$
1,611
  
Real Estate
  
476
    
484
    
960
  
GE Money
  
985
    
1,056
    
2,041
  
GECAS
  
391
    
279
    
670
  
Energy Financial Services
  
133
    
167
    
300
  
Total segment profit
  
2,679
    
2,903
    
5,582
  
GECC corporate items and eliminations
  
(175
)
  
(92
)
  
(267
)
Less portion of net earnings not included in GECC
  
(23
)
  
(61
)
  
(84
)
Earnings in GECC from continuing operations
  
2,481
    
2,750
    
5,231
  
Loss in GECC from discontinued operations,
                  
net of taxes
  
(46
)
  
(336
)
  
(382
)
Total net earnings in GECC
$
2,435
  
$
2,414
  
$
4,849
  

 
CLL
 
 
2008
  
(In millions)
First
quarter
  
Second
quarter
  
Six
months
  
                   
Revenues
$
6,683
  
$
7,295
  
$
13,978
  
Less portion of CLL not included in GECC
  
(160
)
  
(27
)
  
(187
)
Total revenues in GECC
$
6,523
  
$
7,268
  
$
13,791
  
                   
Segment profit
$
694
  
$
917
  
$
1,611
  
Less portion of CLL not included in GECC
  
(27
)
  
(54
)
  
(81
)
Total segment profit in GECC
$
667
  
$
863
  
$
1,530
  
                   
             
Quarters ended (In millions)
First
quarter
  
Second
quarter
      
                   
Total assets
$
248,867
  
$
246,416
        
Less portion of CLL not included in GECC
  
(2,850
)
  
(1,506
)
      
Total assets in GECC
$
246,017
  
$
244,910
        
                   
             

 
(3)
 


 
 
2008
  
(In millions)
First
quarter
  
Second
quarter
  
Six
months
  
                   
Revenues
                  
Capital Solutions
$
3,634
  
$
3,821
  
$
7,455
  
                   
Segment profit
                  
Capital Solutions
$
400
  
$
503
  
$
903
  
             
Quarters ended (In millions)
First
quarter
  
Second
quarter
      
                   
Total assets
                  
Capital Solutions
$
129,405
  
$
124,040
        

 
Real Estate
 
 
2008
  
(In millions)
First
quarter
  
Second
quarter
  
Six
months
  
                   
Revenues
$
1,883
  
$
1,964
  
$
3,847
  
Less portion of Real Estate not included in GECC
  
7
    
(7
)
  
–
  
Total revenues in GECC
$
1,890
  
$
1,957
  
$
3,847
  
                   
Segment profit
$
476
  
$
484
  
$
960
  
Less portion of Real Estate not included in GECC
  
7
    
(1
)
  
6
  
Total segment profit in GECC
$
483
  
$
483
  
$
966
  
                   
             
Quarters ended (In millions)
First
quarter
  
Second
quarter
      
                   
Total assets
$
86,605
  
$
90,611
        
Less portion of Real Estate not included in GECC
  
(386
)
  
(131
)
      
Total assets in GECC
$
86,219
  
$
90,480
        

 
GE Money
 
 
2008
  
(In millions)
First
quarter
  
Second
quarter
  
Six
months
  
                   
Revenues
$
6,363
  
$
6,578
  
$
12,941
  
Less portion of GE Money not included in GECC
  
–
    
–
    
–
  
Total revenues in GECC
$
6,363
  
$
6,578
  
$
12,941
  
                   
Segment profit
$
985
  
$
1,056
  
$
2,041
  
Less portion of GE Money not included in GECC
  
(2
)
  
(5
)
  
(7
)
Total segment profit in GECC
$
983
  
$
1,051
  
$
2,034
  

 

 
(4)
 


 
Quarters ended (In millions)
First
quarter
  
Second
quarter
      
                   
Total assets
$
216,245
  
$
221,242
        
Less portion of GE Money not included in GECC
  
100
    
135
        
Total assets in GECC
$
216,345
  
$
221,377
        

 
GECAS
 
 
2008
  
(In millions)
First
quarter
  
Second
quarter
  
Six
months
  
                   
Revenues
$
1,270
  
$
1,155
  
$
2,425
  
Less portion of GECAS not included in GECC
  
–
    
(1
)
  
(1
)
Total revenues in GECC
$
1,270
  
$
1,154
  
$
2,424
  
                   
Segment profit
$
391
  
$
279
  
$
670
  
Less portion of GECAS not included in GECC
  
(1
)
  
(2
)
  
(3
)
Total segment profit in GECC
$
390
  
$
277
  
$
667
  
                   
             
Quarters ended (In millions)
First
quarter
  
Second
quarter
      
                   
Total assets
$
47,484
  
$
48,383
        
Less portion of GECAS not included in GECC
  
(221
)
  
(232
)
      
Total assets in GECC
$
47,263
  
$
48,151
        

 
Energy Financial Services
 
 
2008
  
(In millions)
First
quarter
  
Second
quarter
  
Six
months
  
                   
Revenues
$
770
  
$
989
  
$
1,759
  
Less portion of Energy Financial Services not included in GECC
  
(1
)
  
1
    
–
  
Total revenues in GECC
$
769
  
$
990
  
$
1,759
  
                   
Segment profit
$
133
  
$
167
  
$
300
  
Less portion of Energy Financial Services not included in GECC
  
–
    
1
    
1
  
Total segment profit in GECC
$
133
  
$
168
  
$
301
  
                   
             
Quarters ended (In millions)
First
quarter
  
Second
quarter
      
                   
Total assets
$
20,837
  
$
21,580
        
Less portion of Energy Financial Services not included in GECC
  
(53
)
  
(52
)
      
Total assets in GECC
$
20,784
  
$
21,528
        

 

 
(5)
 

Consolidated
 
 
2007
  
(In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
  
Total
year
  
                               
Revenues
                              
CLL
$
6,416
  
$
6,581
  
$
6,862
  
$
7,408
  
$
27,267
  
Real Estate
  
1,615
    
1,557
    
1,937
    
1,912
    
7,021
  
GE Money
  
5,882
    
6,211
    
6,153
    
6,523
    
24,769
  
GECAS
  
1,316
    
1,149
    
1,195
    
1,179
    
4,839
  
Energy Financial Services
  
324
    
417
    
832
    
832
    
2,405
  
Total segment revenues
  
15,553
    
15,915
    
16,979
    
17,854
    
66,301
  
GECC corporate items and eliminations
  
451
    
339
    
271
    
600
    
1,661
  
Less portion of revenues not included in GECC
  
(303
)
  
(246
)
  
(235
)
  
(179
)
  
(963
)
Total revenues in GECC
$
15,701
  
$
16,008
  
$
17,015
  
$
18,275
  
$
66,999
  
                               
Segment profit
                              
CLL
$
888
  
$
840
  
$
905
  
$
1,168
  
$
3,801
  
Real Estate
  
564
    
476
    
640
    
605
    
2,285
  
GE Money
  
1,206
    
1,153
    
947
    
963
    
4,269
  
GECAS
  
405
    
281
    
274
    
251
    
1,211
  
Energy Financial Services
  
89
    
157
    
255
    
176
    
677
  
Total segment profit
  
3,152
    
2,907
    
3,021
    
3,163
    
12,243
  
GECC corporate items and eliminations
  
(79
)
  
(310
)
  
269
    
312
    
192
  
Less portion of net earnings not included in GECC
  
(210
)
  
(140
)
  
(82
)
  
(57
)
  
(489
)
Earnings in GECC from continuing operations
  
2,863
    
2,457
    
3,208
    
3,418
    
11,946
  
Loss in GECC from discontinued operations,
                              
net of taxes
  
(384
)
  
(249
)
  
(1,367
)
  
(131
)
  
(2,131
)
Total net earnings in GECC
$
2,479
  
$
2,208
  
$
1,841
  
$
3,287
  
$
9,815
  

 

 
(6)
 

CLL
 
 
2007
  
(In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
  
Total
year
  
                               
Revenues
$
6,416
  
$
6,581
  
$
6,862
  
$
7,408
  
$
27,267
  
Less portion of CLL not included in GECC
  
(280
)
  
(227
)
  
(216
)
  
(160
)
  
(883
)
Total revenues in GECC
$
6,136
  
$
6,354
  
$
6,646
  
$
7,248
  
$
26,384
  
                               
Segment profit
$
888
  
$
840
  
$
905
  
$
1,168
  
$
3,801
  
Less portion of CLL not included in GECC
  
(177
)
  
(111
)
  
(64
)
  
(48
)
  
(400
)
Total segment profit in GECC
$
711
  
$
729
  
$
841
  
$
1,120
  
$
3,401
  
                               
                     
Quarters ended (In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
      
                               
Total assets
$
204,052
  
$
214,231
  
$
220,391
  
$
229,608
        
Less portion of CLL not included in GECC
  
7,396
    
10,542
    
2,831
    
(3,174
)
      
Total assets in GECC
$
211,448
  
$
224,773
  
$
223,222
  
$
226,434
        
                               
                     
(In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
  
Total
year
  
                               
Revenues
                              
Capital Solutions
$
3,363
  
$
3,465
  
$
3,543
  
$
3,983
  
$
14,354
  
                               
Segment profit
                              
Capital Solutions
$
395
  
$
463
  
$
444
  
$
587
  
$
1,889
  
                     
Quarters ended (In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
      
                               
Total assets
                              
Capital Solutions
$
108,768
  
$
115,167
  
$
118,861
  
$
122,527
        

 

 
(7)
 

Real Estate
 
 
2007
  
(In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
  
Total
year
  
                               
Revenues
$
1,615
  
$
1,557
  
$
1,937
  
$
1,912
  
$
7,021
  
Less portion of Real Estate not included in GECC
  
(21
)
  
(17
)
  
(16
)
  
(17
)
  
(71
)
Total revenues in GECC
$
1,594
  
$
1,540
  
$
1,921
  
$
1,895
  
$
6,950
  
                               
Segment profit
$
564
  
$
476
  
$
640
  
$
605
  
$
2,285
  
Less portion of Real Estate not included in GECC
  
(10
)
  
(8
)
  
(7
)
  
(11
)
  
(36
)
Total segment profit in GECC
$
554
  
$
468
  
$
633
  
$
594
  
$
2,249
  
                               
                     
Quarters ended (In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
      
                               
Total assets
$
59,405
  
$
62,057
  
$
72,197
  
$
79,285
        
Less portion of Real Estate not included in GECC
  
(245
)
  
(331
)
  
(260
)
  
(279
)
      
Total assets in GECC
$
59,160
  
$
61,726
  
$
71,937
  
$
79,006
        

 
GE Money
 
 
2007
  
(In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
  
Total
year
  
Revenues
$
5,882
  
$
6,211
  
$
6,153
  
$
6,523
  
$
24,769
  
Less portion of GE Money not included in GECC
  
–
    
–
    
–
    
–
    
–
  
Total revenues in GECC
$
5,882
  
$
6,211
  
$
6,153
  
$
6,523
  
$
24,769
  
                               
Segment profit
$
1,206
  
$
1,153
  
$
947
  
$
963
  
$
4,269
  
Less portion of GE Money not included in GECC
  
(22
)
  
(19
)
  
(10
)
  
4
    
(47
)
Total segment profit in GECC
$
1,184
  
$
1,134
  
$
937
  
$
967
  
$
4,222
  
                               
                     
Quarters ended (In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
      
                               
Total assets
$
178,004
  
$
189,262
  
$
196,840
  
$
209,178
        
Less portion of GE Money not included in GECC
  
955
    
955
    
100
    
100
        
Total assets in GECC
$
178,959
  
$
190,217
  
$
196,940
  
$
209,278
        

 

 
(8)
 

GECAS
 
 
2007
  
(In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
  
Total
year
  
                               
Revenues
$
1,316
  
$
1,149
  
$
1,195
  
$
1,179
  
$
4,839
  
Less portion of GECAS not included in GECC
  
–
    
(1
)
  
(2
)
  
(1
)
  
(4
)
Total revenues in GECC
$
1,316
  
$
1,148
  
$
1,193
  
$
1,178
  
$
4,835
  
                               
Segment profit
$
405
  
$
281
  
$
274
  
$
251
  
$
1,211
  
Less portion of GECAS not included in GECC
  
(1
)
  
(1
)
  
–
    
(2
)
  
(4
)
Total segment profit in GECC
$
404
  
$
280
  
$
274
  
$
249
  
$
1,207
  
                               
                     
Quarters ended (In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
      
                               
Total assets
$
45,586
  
$
45,936
  
$
47,038
  
$
47,189
        
Less portion of GECAS not included in GECC
  
(274
)
  
(256
)
  
(212
)
  
(219
)
      
Total assets in GECC
$
45,312
  
$
45,680
  
$
46,826
  
$
46,970
        

 
Energy Financial Services
 
 
2007
  
(In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
  
Total
year
  
                               
Revenues
$
324
  
$
417
  
$
832
  
$
832
  
$
2,405
  
Less portion of Energy Financial Services
                              
not included in GECC
  
(2
)
  
(1
)
  
(1
)
  
(1
)
  
(5
)
Total revenues in GECC
$
322
  
$
416
  
$
831
  
$
831
  
$
2,400
  
                               
Segment profit
$
89
  
$
157
  
$
255
  
$
176
  
$
677
  
Less portion of Energy Financial Services
                              
not included in GECC
  
–
    
(1
)
  
(1
)
  
–
    
(2
)
Total segment profit in GECC
$
89
  
$
156
  
$
254
  
$
176
  
$
675
  
                               
                     
Quarters ended (In millions)
First
quarter
  
Second
quarter
  
Third
quarter
  
Fourth
quarter
      
                               
Total assets
$
15,765
  
$
17,340
  
$
17,493
  
$
18,705
        
Less portion of Energy Financial Services
                              
not included in GECC
  
(37
)
  
(38
)
  
(40
)
  
(52
)
      
Total assets in GECC
$
15,728
  
$
17,302
  
$
17,453
  
$
18,653
        

 

 
(9)