Download 1Q'10 GECS Supplement

GE Capital
First quarter 2010 supplement
Results are unaudited. This document contains “forward-looking statements”- that is, statements related to future, not past, events. In this context, forward-looking statements
often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,”
“seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our
actual results to be materially different than those expressed in our forward-looking statements include: the severity and duration of current economic and financial conditions,
including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; the impact of U.S. and foreign government programs to restore
liquidity and stimulate national and global economies; the impact of conditions in the financial and credit markets on the availability and cost of GE Capital’s funding and on our
ability to reduce GE Capital’s asset levels exposure as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer
credit defaults; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the soundness of other financial
institutions with which GE Capital does business; the level of demand and financial performance of the major industries we serve, including, without limitation, air transportation,
real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of proposed financial
services regulation; strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses; and numerous other matters of national, regional
and global scale, including those of a political, economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than
those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
This document may also contain non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be
informative to investors in gauging the quality of our financial performance, identifying trends in our results and providing meaningful period-to-period comparisons.
First quarter 2010 supplemental information
Table of Contents
1. GE Capital structure
Page #
1
2. Financial statements
a) GECC
3-4
b) GECS
5-6
c) GECC continuing operations (GE Capital)
7
d) Impact of FAS 167 adoption
8-9
3. GE Capital asset quality
a) Assets by region
11
b) Assets in selected emerging markets
12
c) Portfolio overview and ratios
13-18
d) Consumer allowance for losses on financing receivables
19
e) Consumer financing receivables by region
20
f) Consumer mortgage portfolio by country
21
g) Commercial allowance for losses on financing receivables
22
h) Commercial real estate debt and equity overview
23-24
i) Equipment leased to others overview
25
j) Commercial aircraft asset details
26
4. GE Capital other key areas
a) Investment securities
28
b) Investments measured at fair value in earnings
29
c) Ending net investment
30
d) GECC ratios
31
5. GECS supplemental information
a) Assets by region
33
b) Investment securities
34
c) Funding
35
d) Ratios
36
6. Appendix
a) Glossary
38-39
GE Capital structure
General Electric Company
General Electric Capital Services,
Inc. (GECS)
General Electric Capital
Corporation (GECC)
GE Capital - operating segments
Consumer
-
Private label credit cards
Bank cards
Personal loans
Auto loans and leases
Mortgages & home equity loans
Debt consolidation
Deposit & other savings products
Small & medium enterprise lending
Commercial Lending and
Leasing (CLL)
- Mid-market loans and leases of equipment
and major capital assets
- Mid-market equity capital
Real Estate
- Equity capital for acquisition or
recapitalization of commercial real estate
- Fixed/floating rate mortgages for
commercial real estate
Energy Financial Services
(EFS)
- Structured debt, equity, leasing,
partnership financing and project
financing to global energy and water
industries
- Invests in operating assets in these
industries
GE Capital Aviation Services
(GECAS)
- Commercial aircraft leasing and financing
- Project financing for airport facilities
1
Financial statements
2
GECC - condensed statement of earnings
(In millions)
Revenues
Revenues from services
Sales of goods
Total revenues
March 31,
2010
$
Costs and expenses
Interest
Operating and administrative
Cost of goods sold
Investment contracts, insurance losses and insurance annuity benefits
Provision for losses on financing receivables
Depreciation and amortization
Total costs and expenses
12,050
281
12,331
December 31,
2009
$
12,456
279
12,735
For three months ending
September 30,
2009
$
11,792
213
12,005
June 30,
2009
$
12,531
205
12,736
March 31,
2009
$
13,502
273
13,775
3,929
3,677
265
35
2,263
1,924
12,093
4,228
3,948
239
45
2,907
2,128
13,495
4,135
3,673
181
47
2,868
2,068
12,972
4,475
3,495
164
45
2,817
1,946
12,942
5,113
3,902
224
73
2,336
2,180
13,828
Earnings (loss) from continuing operations before income taxes
Benefit for income taxes
238
372
(760)
856
(967)
1,116
(206)
654
(53)
1,128
Earnings from continuing operations (a)
Loss from discontinued operations, net of taxes
610
(387)
96
(11)
149
84
448
(194)
1,075
(3)
Net earnings
Less: net earnings (loss) attributable to noncontrolling interests
223
3
85
(40)
233
8
254
17
1,072
46
Net earnings attributable to GECC
$
220
$
125
GECC - statement of changes in shareowners' equity
March 31,
2010
(In millions)
Changes in GECC shareowners' equity
Balance at beginning of period
Accounting changes (b)
Dividends and other transactions with shareowner
Accumulated other comprehensive income - net
Investment securities
Currency translation adjustments
Cash flow hedges
Benefit plans
Total other comprehensive income
Increases attributable to net earnings
Comprehensive income
Balance at end of period
$
73,718
(1,565)
(4)
December 31,
2009
$
143
(1,312)
413
42
(714)
215
(499)
$
71,650
73,193
(12)
$
73,718
$
For three months ending
September 30,
2009
$
401
(38)
138
(60)
441
96
537
$
225
71,720
(24)
73,168
$
June 30,
2009
$
420
896
(17)
2
1,301
171
1,472
$
237
65,635
23
March 31,
2009
$
556
4,731
593
(17)
5,863
199
6,062
$
71,720
1,026
58,229
8,750
(40)
(3,024)
723
8
(2,333)
989
(1,344)
$
65,635
(a) Effective January 1, 2010, GE Captial segment earnings are equal to the earnings from continuing operations for GECC.
(b) March 31, 2010 reflects the impact of adoption of FAS 167 (ASU 2009-17).
3
GECC - condensed statement of financial position
(In millions)
Assets
Cash and equivalents
Investment securities (see page 28)
Inventories
Financing receivables - net
Other receivables
Property, plant & equipment, less accumulated amortization of $26,387, $26,307,
$26,471, $26,327 and $25,578
Goodwill
Other intangible assets - net
Other assets
Assets of businesses held for sale
Assets of discontinued operations
Total assets
Liabilities and equity
Short-term borrowings
Accounts payable
Non-recourse borrowings of consolidated securitization entities
Bank Deposits
Long-term borrowings
Investment contracts, insurance liabilities and insurance annuity benefits
Other liabilities
Deferred income taxes
Liabilities of businesses held for sale
Liabilities of discontinued operations
March 31,
2010
$
59,614
16,237
77
356,185
13,917
December 31,
2009
$
63,696
27,509
71
336,926
17,876
September 30,
2009
$
56,695
28,961
3,018
86,355
125
1,470
55,905
28,499
2,786
83,043
949
1,034
56,254
27,613
79
348,518
17,698
June 30,
2009
$
58,690
28,184
3,371
87,040
1,263
1,533
March 31,
2009
49,188
22,044
73
358,949
17,764
$
58,627
27,709
3,541
84,747
232
1,462
43,985
21,582
65
354,480
16,672
58,168
24,832
2,982
87,203
1,464
$
618,246
$
622,702
$
630,243
$
624,336
$
611,433
$
119,568
8,019
36,780
38,310
307,032
8,389
19,601
5,908
30
801
$
128,329
11,162
3,883
38,923
326,321
8,687
22,736
5,831
55
853
$
128,577
10,378
4,402
36,836
335,275
9,640
20,458
8,394
143
843
$
140,107
10,101
4,984
36,458
317,757
9,526
24,358
6,151
196
913
$
144,043
8,977
5,591
33,967
307,115
10,851
23,401
9,019
737
Total liabilites
544,438
546,780
554,946
550,551
543,701
Capital stock
Accumulated other comprehensive income - net
Investment securities
Currency translation adjustments
Cash flow hedges
Benefit plans
Additional paid-in-capital
Retained earnings
56
56
56
56
56
(743)
(132)
(1,403)
(392)
28,427
45,837
(676)
1,228
(1,816)
(434)
28,431
46,929
(1,077)
1,266
(1,954)
(374)
28,418
46,833
(1,497)
370
(1,937)
(376)
28,419
46,685
(2,053)
(4,361)
(2,530)
(359)
28,421
46,461
Total GECC shareowner's equity
71,650
73,718
73,168
71,720
65,635
2,158
2,204
2,129
2,065
2,097
73,808
75,922
75,297
73,785
67,732
Noncontrolling interests
Total equity
Total liabilities and equity
$
618,246
$
622,702
$
630,243
$
624,336
$
611,433
4
GECS - condensed statement of earnings
(In millions)
Revenues
Revenues from services
Sales of goods
Total revenues
March 31,
2010
$
Costs and expenses
Interest
Operating and administrative
Cost of goods sold
Investment contracts, insurance losses and insurance annuity benefits
Provision for losses on financing receivables (see pages 19 and 22)
Depreciation and amortization
Total costs and expenses
12,890
281
13,171
December 31,
2009
$
For three months ending
September 30,
2009
13,224
279
13,503
$
12,533
213
12,746
June 30,
2009
$
March 31,
2009
13,252
205
13,457
$
14,184
273
14,457
3,938
3,808
265
787
2,263
1,925
12,986
4,225
3,991
239
812
2,907
2,128
14,302
4,128
3,712
181
785
2,868
2,069
13,743
4,468
3,524
164
823
2,817
1,947
13,743
5,121
3,948
224
773
2,336
2,181
14,583
Earnings (loss) from continuing operations before income taxes
Benefit for income taxes
185
357
(799)
870
(997)
1,138
(286)
670
(126)
1,151
Earnings from continuing operations
Loss from discontinued operations, net of taxes
542
(387)
71
(18)
141
40
384
(193)
1,025
(4)
Net earnings
Less: net earnings (loss) attributable to noncontrolling interests
155
3
53
(40)
181
8
191
17
1,021
46
Net earnings attributable to GECS
$
152
$
93
GECS - statement of changes in shareowners' equity
March 31,
2010
(In millions)
Changes in GECS shareowners' equity
Balance at beginning of period
Accounting changes (a)
Dividends and other transactions with shareowner
Accumulated other comprehensive income - net
Investment securities
Currency translation adjustments
Cash flow hedges
Benefit plans
Total other comprehensive income
Increases attributable to net earnings
Comprehensive income
Balance at end of period
$
70,833
(1,910)
(3)
December 31,
2009
$
310
(1,311)
413
42
(546)
143
(403)
$
68,517
$
70,720
(50)
70,833
$
For three months ending
September 30,
2009
$
42
(37)
125
(60)
70
93
163
$
173
67,904
(24)
70,658
$
June 30,
2009
$
1,698
915
(10)
2
2,605
173
2,778
$
174
60,774
61
March 31,
2009
$
1,557
4,801
554
(17)
6,895
174
7,069
$
67,904
975
53,279
9,501
(636)
(3,049)
696
8
(2,981)
975
(2,006)
$
60,774
(a) March 31, 2010 reflects the impact of adoption of FAS 167 (ASU 2009-17).
5
GECS - condensed statement of financial position
(In millions)
Assets
Cash and equivalents
Investment securities (see page 34)
Inventories
Financing receivables - net (see pages 13 - 18)
Other receivables
Property, plant & equipment, less accumulated amortization of $26,402, $26,322,
$26,485, $26,341 and $25,591 (see page 25)
Goodwill
Other intangible assets - net
Other assets
Assets of businesses held for sale
Assets of discontinued operations
Total assets
Liabilities and equity
Short-term borrowings (see page 35)
Accounts payable
Non-recourse borrowings of consolidated securitization entities
Bank Deposits
Long-term borrowings (see page 35)
Investment contracts, insurance liabilities and insurance annuity benefits
Other liabilities
Deferred income taxes
Liabilities of businesses held for sale
Liabilities of discontinued operations
March 31,
2010
$
December 31,
2009
60,039
41,523
77
356,185
14,527
$
64,356
51,913
71
336,926
18,752
September 30,
2009
$
56,717
28,961
3,479
87,471
125
1,470
55,926
28,499
3,238
84,145
949
1,035
56,898
52,723
79
348,518
18,625
June 30,
2009
$
58,712
28,184
3,838
87,941
1,263
1,533
March 31,
2009
50,017
45,168
73
358,949
18,719
$
58,649
27,709
4,009
85,647
232
1,462
45,240
41,783
65
354,480
17,728
58,190
24,832
3,416
88,179
1,464
$
646,143
$
650,241
$
658,314
$
650,634
$
635,377
$
124,457
8,261
36,780
38,310
307,102
31,990
20,566
6,900
30
1,072
$
131,137
13,275
3,883
38,923
326,391
32,009
23,756
6,793
55
1,138
$
131,768
12,501
4,402
36,836
335,347
32,948
21,021
9,434
143
1,279
$
143,316
12,401
4,984
36,458
317,829
32,831
24,904
6,585
196
1,305
$
146,288
11,718
5,591
33,967
307,242
33,946
23,854
8,863
1,165
Total liabilites
575,468
577,360
585,679
580,809
572,634
Capital stock
Accumulated other comprehensive income - net
Investment securities
Currency translation adjustments
Cash flow hedges
Benefit plans
Additional paid-in-capital
Retained earnings
11
11
11
11
11
(343)
13
(1,356)
(392)
27,578
43,006
(436)
1,372
(1,769)
(434)
27,581
44,508
(478)
1,409
(1,894)
(374)
27,568
44,416
(2,176)
494
(1,884)
(376)
27,569
44,266
(3,733)
(4,307)
(2,438)
(359)
27,570
44,030
Total GECS shareowners' equity
68,517
70,833
70,658
67,904
60,774
2,158
2,048
1,977
1,921
1,969
70,675
72,881
72,635
69,825
62,743
Noncontrolling interests
Total equity
Total liabilities and equity
$
646,143
$
650,241
$
658,314
$
650,634
$
635,377
6
GECC continuing operations (GE Capital)
March 31,
2010
(In millions)
Revenues
Less: Interest expense
Net revenues
$
12,331
(3,929)
8,402
December 31,
2009
$
12,735
(4,228)
8,507
For three months ending
September 30,
2009
$
12,005
(4,135)
7,870
June 30,
2009
$
12,736
(4,475)
8,261
March 31,
2009
$
13,775
(5,113)
8,662
Costs and expenses
Selling, general and administrative
Depreciation and amortization
Operating and other expenses
Total costs and expenses
2,826
1,924
1,151
5,901
3,108
2,128
1,124
6,360
2,875
2,068
1,026
5,969
2,814
1,946
890
5,650
3,026
2,180
1,173
6,379
Earnings before income taxes and provision for losses
Less: Provision for losses on financing receivables
2,501
(2,263)
2,147
(2,907)
1,901
(2,868)
2,611
(2,817)
2,283
(2,336)
238
372
(760)
856
(967)
1,116
(206)
654
(53)
1,128
Earnings (loss) before income taxes
Benefit for income taxes
Earnings from continuing operations before noncontrolling interests
Less: Net earnings (loss) attributable to noncontrolling interests
$
610
3
$
96
(40)
$
149
8
$
448
17
$
1,075
46
GE Capital segment earnings
$
607
$
136
$
141
$
431
$
1,029
March 31,
2010
(In millions)
Segment profit
CLL
Consumer
Real Estate
EFS
GECAS
$
$
GECC corporate items and eliminations
GE Capital segment earnings
$
December 31,
2009
232
593
(403)
153
317
892
(285)
$
607
$
$
For three months ending
September 30,
2009
352
262
(593)
31
283
335
(199)
$
136
$
$
June 30,
2009
130
443
(538)
41
187
263
(122)
$
141
$
$
March 31,
2009
243
252
(237)
65
285
608
(177)
$
431
$
$
238
737
(173)
75
261
1,138
(109)
1,029
7
GECC - impact of FAS 167 (ASU 2009-17) adoption overview
January 1,
2010
(In millions)
Assets
Financing receivables - net
Investment securities
Other
$
40,188
(7,552)
(1,719)
$
30,917
$
1,019
37,176
(5,836)
Total
$
32,359
Equity
Accumulated non-owner changes to equity
Retained earnings
$
258
1,307
1,565
(123)
$
1,442
Total
Liabilities
Borrowings and deposits
Nonrecourse borrowings of consolidated securitization entities
Other
Noncontrolling interests
Total
8
GECS - impact of FAS 167 (ASU 2009-17) adoption overview
January 1,
2010
(In millions)
Assets
Financing receivables - net
Investment securities
Other
$
40,188
(7,552)
(2,064)
$
30,572
$
1,019
37,176
(5,836)
Total
$
32,359
Equity
Accumulated non-owner changes to equity
Retained earnings
$
265
1,645
1,910
(123)
$
1,787
Total
Liabilities
Borrowings and deposits
Nonrecourse borrowings of consolidated securitization entities
Other
Noncontrolling interests
Total
9
GE Capital asset quality
10
GE Capital - assets by region (a), (b)
At
March 31,
2010
Property, plant and
equipment (net)
Financing
receivables (net)
(In millions)
167,575
$
U.S.
Europe
Western (including U.K.)
Eastern
Pacific Basin
Americas (excluding U.S.)
Other
$
Total
$
356,185
$
55,905
$
617,212
Total at December 31, 2009
$
336,926
$
56,695
$
621,232
Total at September 30, 2009
$
348,518
$
58,690
$
628,710
Total at June 30, 2009
$
358,949
$
58,627
$
622,874
Total at March 31, 2009
$
354,480
$
58,168
$
609,969
87,707
19,800
33,797
32,234
15,072
12,387
Total assets
$
6,892
391
2,824
1,351
32,060
312,015
$
118,722
30,616
57,670
44,143
54,046
December 31,
2009
September 30,
2009
June 30,
2009
March 31,
2009
Total assets
Total assets
Total assets
Total assets
302,126
$
130,822
31,499
60,233
42,313
54,239
$
621,232
300,639
$
136,093
32,044
62,986
42,899
54,049
$
628,710
296,809
$
135,993
29,290
63,659
42,837
54,286
$
622,874
305,239
128,861
27,169
61,705
32,289
54,706
$
609,969
(a) Excludes assets of discontinued operations.
(b) Prior period amounts have been reclassified to conform to current-period's presentation.
11
GE Capital - assets in selected emerging markets
(In millions)
Selected emerging markets (a) (b)
Eastern Europe
Poland
Czech Republic
Hungary
Turkey
Total Eastern Europe
Financing
receivables (net)
$
9,773
5,571
3,477
18,821
March 31,
2010
Property, plant and
equipment (net)
$
208
64
64
336
Total assets
$
13,274
7,636
4,625
2,801
28,336
$
At
December 31,
2009
September 30,
2009
June 30,
2009
March 31,
2009
Total assets
Total assets
Total assets
Total assets
13,421
8,221
4,816
2,684
29,142
$
13,622
8,165
5,165
2,590
29,542
$
12,202
7,458
4,765
2,313
26,738
$
11,664
6,601
4,375
2,010
24,650
Pacific Basin and Other
India
Thailand
Total Pacific Basin and Other
1,326
75
1,401
19
19
2,225
1,455
3,680
1,765
1,386
3,151
2,032
2,524
4,556
2,273
2,536
4,809
2,696
2,430
5,126
Americas
Mexico
Central America (ex-Mexico)
Total Americas
7,893
4,840
12,733
596
248
844
10,000
9,361
19,361
10,155
9,371
19,526
9,930
9,035
18,965
10,199
9,048
19,247
9,948
731
10,679
Total
$
32,955
$
1,199
$
51,377
Total at December 31, 2009
$
34,750
$
1,230
$
51,819
Total at September 30, 2009
$
35,681
$
1,135
$
53,063
Total at June 30, 2009
$
36,043
$
1,026
$
50,794
Total at March 31, 2009
$
29,743
$
903
$
40,455
$
51,819
$
53,063
$
50,794
$
40,455
(a) We have disclosed here selected emerging markets where our total assets at March 31, 2010, exceed $1 billion. Assets of discontinued operations are excluded.
(b) Prior period amounts have been reclassified to conform to current-period's presentation.
12
GE Capital - portfolio overview
(In millions, unless otherwise noted)
Balances (a)
March 31,
2010
CLL
Americas
Europe
Asia
Other
Total (c)
$
$
96,553
39,980
12,664
2,791
151,988
$
$
March 31,
2010
CLL
Americas
Europe
Asia
Other
Total
$
$
$
$
$
$
$
87,496
41,455
13,202
2,836
144,989
$
$
92,263
42,499
14,096
2,896
151,754
$
$
$
$
3,155
1,441
576
24
5,196
$
$
3,471
1,296
595
31
5,393
$
$
Allowance for losses (e)
December 31,
September 30,
2009
2009
1,245
575
234
11
2,065
$
$
1,179
575
244
11
2,009
$
$
1,098
533
242
6
1,879
247
132
46
425
$
$
344
102
62
(1)
507
$
$
266
89
39
3
397
March 31,
2009
97,173
42,705
14,057
2,946
156,881
$
$
June 30,
2009
$
$
3,057
1,105
533
29
4,724
$
$
$
2,706
469
389
11
3,575
March 31,
2009
1,133
478
199
8
1,818
$
$
June 30,
2009
$
100,985
42,756
14,528
3,076
161,345
March 31,
2009
June 30,
2009
Write-offs (net) - for three months ending
December 31,
September 30,
2009
2009
March 31,
2010 (f)
CLL
Americas
Europe
Asia
Other
Total
$
January 1,
2010 (b)
1,319
484
236
12
2,051
$
$
June 30,
2009
Nonearning receivables (d)
December 31,
September 30,
2009
2009
3,437
1,441
559
24
5,461
$
March 31,
2010
CLL
Americas
Europe
Asia
Other
Total
99,666
43,403
13,159
2,836
159,064
January 1,
2010 (b)
3,210
1,126
467
26
4,829
$
Financing receivables
December 31,
September 30,
2009
2009
January 1,
2010 (b)
920
354
178
7
1,459
March 31,
2009
229
88
54
1
372
$
$
185
68
24
277
(a) During the first quarter of 2010, we transferred the Transportation Financial Services business from GECAS to CLL and the Consumer business in Italy from Consumer to CLL. Prior-period amounts were reclassified to conform to current-period's presentation.
(b) Change from December 31, 2009, reflects the impact of adoption of ASU 2009-17, amendments to ASC 810, Consolidation.
(c) Financing receivables include impaired loans of $4,644 million at March 31, 2010, included in this balance is $99 of impaired loans that were consolidated with the adoption of ASU 2009-17, amendments to ASC 810, Consolidation.
(d) Nonearning receivables are those that are 90 days or more past due (or for which collection has otherwise become doubtful). Nonearning receivables exclude loans purchased at a discount (unless they have deteriorated post acquisition). Under ASC 310, Receivables,
these loans are initially recorded at fair value and accrete interest income over the estimated life of the loan based on reasonably estimable cash flows even if the underlying loans are contractually delinquent at acquisition. In addition, nonearning receivables exclude loans
which are paying currently under a cash accounting basis, but classified as impaired. Recently restructured financing receivables are not considered delinquent when payments are brought current according to restructured terms but may remain classified as nonearning until
there has been a period of satisfactory payment performance by the borrower and future payments are reasonably assured of collection.
(e) Losses on financing receivables are recognized when they are incurred, which requires us to make our best estimate of probable losses inherent in the portfolio. Such estimate requires consideration of historical loss experience, adjusted for current conditions, and judgments
about the probable effects of relevant observable data, including present economic conditions such as delinquency rates, financial health of specific customers and market sectors, collateral values (including housing price indices as applicable), and the present and expected
future levels of interest rates. Our risk management process includes standards and policies for reviewing major risk exposures and concentrations, and evaluates relevant data either for individual loans or financing leases, on a portfolio basis, as appropriate.
Effective January 1, 2009, loans acquired in a business acquisition are recorded at fair value, which incorporates our estimate at the acquisition date of the credit losses over the remaining life of the portfolio. As a result, the allowance for loan losses is
not carried over at acquisition. This may result in lower reserve coverage ratios prospectively.
(f) Includes $42 million net write-offs related to VIEs consolidated with the adoption of ASU 2009-17, amendment to ASC810, Consolidation.
13
GE Capital - portfolio overview
Ratios (a)
Nonearning receivables as as percent of financing receivables (b)
January 1,
December 31,
September 30,
2010 (c)
2009
2009
March 31,
2010
CLL
Americas
Europe
Asia
Other
Total
3.3 %
2.8
3.7
0.9
3.2 %
41.1 %
43.0
50.5
46.2
42.5 %
1.4 %
1.2
1.9
0.4
1.3 %
37.4 %
39.9
42.4
50.0
38.7 %
1.2 %
1.3
1.8
0.4
1.3 %
1.3 %
1.4
1.8
0.4
1.4 %
1.0 %
1.3
1.4
NM
1.1 %
1.5 %
1.0
1.8
NM
1.4 %
2.71 %
2.81 %
March 31,
2009
3.1 %
2.6
3.8
1.0
3.0 %
June 30,
2009
31.6 %
41.1
40.7
19.4
34.8 %
2.7 %
1.1
2.7
0.4
2.2 %
March 31,
2009
37.1 %
43.3
37.3
27.6
38.5 %
June 30,
2009
1.2 %
1.3
1.7
0.2
1.2 %
34.0 %
75.5
45.8
63.6
40.8 %
March 31,
2009
1.2 %
1.1
1.4
0.3
1.2 %
June 30,
2009
1.1 %
0.8
1.1
0.4
1.0 %
Equipment financing
December 31,
September 30,
2009
2009
March 31,
2010
Managed delinquency
36.2 %
39.9
41.9
45.8
37.8 %
Write-offs as a percent of financing receivables (e)
December 31,
September 30,
2009
2009
March 31,
2010
CLL
Americas
Europe
Asia
Other
Total
3.8 %
3.0
4.2
1.1
3.6 %
Allowance for losses as a percent of total financing receivables (d)
January 1,
December 31,
September 30,
2010 (c)
2009
2009
March 31,
2010
CLL
Americas
Europe
Asia
Other
Total
3.6 %
3.5
4.4
0.8
3.6 %
Allowance for losses as a percent of nonearning receivables (d)
January 1,
December 31,
September 30,
2010 (c)
2009
2009
March 31,
2010
CLL
Americas
Europe
Asia
Other
Total
3.4 %
3.3
4.2
0.8
3.4 %
June 30,
2009
0.9 %
0.8
1.2
0.2
0.9 %
March 31,
2009
0.9 %
0.8
1.5
0.1
0.9 %
June 30,
2009
3.01 %
0.7 %
0.6
0.6
NM
0.7 %
March 31,
2009
2.78 %
2.84 %
(a) During the first quarter of 2010, we transferred the Transportation Financial Services business from GECAS to CLL and the Consumer business in Italy from Consumer to CLL. Prior-period amounts were reclassified to conform to current-period's presentation.
(b) Nonearning receivables are those that are 90 days or more past due (or for which collection has otherwise become doubtful). Nonearning receivables exclude loans purchased at a discount (unless they have deteriorated post acquisition). Under ASC 310, Receivables,
these loans are initially recorded at fair value and accrete interest income over the estimated life of the loan based on reasonably estimable cash flows even if the underlying loans are contractually delinquent at acquisition. In addition, nonearning receivables exclude loans
which are paying currently under a cash accounting basis, but classified as impaired. Recently restructured financing receivables are not considered delinquent when payments are brought current according to restructured terms but may remain classified as nonearning until
there has been a period of satisfactory payment performance by the borrower and future payments are reasonably assured of collection.
(c) Change from December 31, 2009, reflects the impact of adoption of ASU 2009-17, amendments to ASC 810, Consolidation.
(d) Losses on financing receivables are recognized when they are incurred, which requires us to make our best estimate of probable losses inherent in the portfolio. Such estimate requires consideration of historical loss experience, adjusted for current conditions, and judgments about the
probable effects of relevant observable data, including present economic conditions such as delinquency rates, financial health of specific customers and market sectors, collateral values (including housing price indices as applicable), and the present and expected future levels
of interest rates. Our risk management process includes standards and policies for reviewing major risk exposures and concentrations, and evaluates relevant data either for individual loans or financing leases, on a portfolio basis, as appropriate. Effective January 1, 2009,
loans acquired in a business acquisition are recorded at fair value, which incorporates our estimate at the acquisition date of the credit losses over the remaining life of the portfolio. As a result, the allowance for loan losses is not carried over at acquisition.
This may result in lower reserve coverage ratios prospectively.
(e) Write-offs percent is calculated as the ratio of annualized write-offs for the quarter divided by average of financing receivables at the beginning and end of the period.
14
GE Capital - portfolio overview
(In millions, unless otherwise noted)
Balances (a)
March 31,
2010
Consumer
Non - U.S. residential mortgages
Non - U.S. installment and revolving credit
U.S. installment and revolving credit
Non - U.S. auto
Other
Total (c)
$
$
52,722
24,256
43,330
12,025
10,898
143,231
$
$
March 31,
2010
Consumer
Non - U.S. residential mortgages
Non - U.S. installment and revolving credit
U.S. installment and revolving credit
Non - U.S. auto
Other
Total
$
$
$
March 31,
2010
Consumer
Non - U.S. residential mortgages
Non - U.S. installment and revolving credit
U.S. installment and revolving credit
Non - U.S. auto
Other
Total
$
$
$
$
4,515
451
1,633
72
625
7,296
$
$
949
1,181
3,300
308
300
6,038
58,345
24,976
23,190
13,344
11,688
131,543
$
$
60,812
24,963
22,324
14,196
11,975
134,270
June 30,
2009
$
$
Nonearning receivables (d)
December 31,
September 30,
2009
2009
$
$
4,515
451
841
72
625
6,504
$
$
4,736
447
749
74
457
6,463
$
$
Allowance for losses (e)
December 31,
September 30,
2009
2009
$
$
949
1,181
1,698
308
300
4,436
$
$
973
1,108
1,568
296
258
4,203
78
389
1,114
47
91
1,719
$
$
128
416
602
31
89
1,266
$
$
122
452
645
91
98
1,408
62,100
25,262
23,939
14,661
11,963
137,925
March 31,
2009
$
$
June 30,
2009
4,854
521
818
83
278
6,554
$
$
828
1,141
1,575
264
234
4,042
$
$
115
470
699
108
71
1,463
3,856
442
833
85
212
5,428
$
March 31,
2009
$
524
1,033
1,718
229
199
3,703
$
June 30,
2009
$
56,506
22,054
25,286
13,924
10,294
128,064
March 31,
2009
June 30,
2009
Write-offs (net) - for three months ending
December 31,
September 30,
2009
2009
March 31,
2010 (f)
Consumer
Non - U.S. residential mortgages
Non - U.S. installment and revolving credit
U.S. installment and revolving credit
Non - U.S. auto
Other
Total
$
January 1,
2010 (b)
913
1,139
3,125
294
308
5,779
$
58,345
24,976
47,171
13,344
11,688
155,524
January 1,
2010 (b)
4,341
427
1,453
64
518
6,803
$
Financing receivables
December 31,
September 30,
2009
2009
January 1,
2010 (b)
March 31,
2009
$
$
57
394
658
99
65
1,273
(a) During the first quarter of 2010, we transferred the Consumer business in Italy from Consumer to CLL. Prior-period amounts were reclassified to conform to current-period's presentation.
(b) Change from December 31, 2009, reflects the impact of adoption of ASU 2009-17, amendments to ASC 810, Consolidation.
(c) Financing receivables include impaired loans of $1,845 million at March 31, 2010, included in this balance is $364 of impaired loans that were consolidated with the adoption of ASU 2009-17, amendments to ASC 810, Consolidation.
(d) Nonearning receivables are those that are 90 days or more past due (or for which collection has otherwise become doubtful). Nonearning receivables exclude loans purchased at a discount (unless they have deteriorated post acquisition). Under ASC 310, Receivables,
these loans are initially recorded at fair value and accrete interest income over the estimated life of the loan based on reasonably estimable cash flows even if the underlying loans are contractually delinquent at acquisition. In addition, nonearning receivables exclude loans
which are paying currently under a cash accounting basis, but classified as impaired. Recently restructured financing receivables are not considered delinquent when payments are brought current according to restructured terms but may remain classified as nonearning until
there has been a period of satisfactory payment performance by the borrower and future payments are reasonably assured of collection.
(e) Losses on financing receivables are recognized when they are incurred, which requires us to make our best estimate of probable losses inherent in the portfolio. Such estimate requires consideration of historical loss experience, adjusted for current conditions, and
judgments about the probable effects of relevant observable data, including present economic conditions such as delinquency rates, financial health of specific customers and market sectors, collateral values (including housing price indices as applicable), and the
present and expected future levels of interest rates. Our risk management process includes standards and policies for reviewing major risk exposures and concentrations, and evaluates relevant data either for individual loans or financing leases, on a portfolio basis,
as appropriate. Effective January 1, 2009, loans acquired in a business acquisition are recorded at fair value, which incorporates our estimate at the acquisition date of the credit losses over the remaining life of the portfolio. As a result, the allowance for loan losses
is not carried over at acquisition. This may result in lower reserve coverage ratios prospectively.
(f) Includes $587 million of net write-offs related to VIE assets consolidated with the adoption of ASU 2009-17, amendment to ASC 810, Consolidation, and sellers interest included in the VIE that was on-book prior to January 1, 2010.
15
GE Capital - portfolio overview
Ratios (a)
Nonearning receivables as as percent of financing receivables (b)
January 1,
December 31,
September 30,
June 30,
2010 (c)
2009
2009
2009
March 31,
2010
Consumer
Non - U.S. residential mortgages
Non - U.S. installment and revolving credit
U.S. installment and revolving credit
Non - U.S. auto
Other
Total
8.2 %
1.8
3.4
0.5
4.8
4.7 %
21.0 %
266.7
215.1
459.4
59.5
84.9 %
1.7 %
4.7
7.2
2.4
2.8
4.0 %
0.6 %
6.3
13.4
1.5
3.2
5.0 %
21.0 %
261.9
201.9
427.8
48.0
68.2 %
1.6 %
4.7
7.0
2.3
2.6
3.9 %
1.6 %
4.7
7.3
2.3
2.6
3.4 %
0.9 %
6.7
10.6
0.9
3.0
3.8 %
Consumer
December 31,
2009
March 31,
2010
Managed delinquency
21.0 %
261.9
202.1
427.8
48.0
82.8 %
20.5 %
247.9
209.3
400.0
56.5
65.0 %
7.8 %
2.1
3.4
0.6
2.3
4.8 %
March 31,
2009
8.72 %
8.85 %
8.82 %
13.6 %
233.7
206.2
269.4
93.9
68.2 %
March 31,
2009
1.3 %
4.5
6.6
1.8
2.0
2.9 %
June 30,
2009
0.8 %
7.2
11.2
2.5
3.3
4.1 %
September 30,
2009
6.8 %
2.0
3.3
0.6
2.1
4.2 %
17.1 %
219.0
192.5
318.1
84.2
61.7 %
1.6 %
4.4
7.0
2.1
2.2
3.1 %
Write-offs as a percent of financing receivables (e)
December 31,
September 30,
2009
2009
March 31,
2010
Consumer
Non - U.S. residential mortgages
Non - U.S. installment and revolving credit
U.S. installment and revolving credit
Non - U.S. auto
Other
Total
7.8 %
1.8
3.4
0.5
3.8
4.8 %
Allowance for losses as a percent of total financing receivables (d)
January 1,
December 31,
September 30,
June 30,
2010 (c)
2009
2009
2009
March 31,
2010
Consumer
Non - U.S. residential mortgages
Non - U.S. installment and revolving credit
U.S. installment and revolving credit
Non - U.S. auto
Other
Total
7.7 %
1.8
3.6
0.5
5.3
4.9 %
Allowance for losses as a percent of nonearning receivables (d)
January 1,
December 31,
September 30,
June 30,
2010 (c)
2009
2009
2009
March 31,
2010
Consumer
Non - U.S. residential mortgages
Non - U.S. installment and revolving credit
U.S. installment and revolving credit
Non - U.S. auto
Other
Total
7.7 %
1.8
3.5
0.5
5.3
4.7 %
March 31,
2009
0.9 %
4.7
6.8
1.6
1.9
2.9 %
March 31,
2009
0.8 %
7.9
11.4
3.0
2.6
4.4 %
June 30,
2009
0.4 %
6.8
9.9
2.6
2.4
3.8 %
March 31,
2009
8.77 %
8.25 %
(a) During the first quarter of 2010, we transferred the Consumer business in Italy from Consumer to CLL. Prior-period amounts were reclassified to conform to current-period's presentation.
(b) Nonearning receivables are those that are 90 days or more past due (or for which collection has otherwise become doubtful). Nonearning receivables exclude loans purchased at a discount (unless they have deteriorated post acquisition). Under ASC 310, Receivables,
these loans are initially recorded at fair value and accrete interest income over the estimated life of the loan based on reasonably estimable cash flows even if the underlying loans are contractually delinquent at acquisition. In addition, nonearning receivables exclude loans
which are paying currently under a cash accounting basis, but classified as impaired. Recently restructured financing receivables are not considered delinquent when payments are brought current according to restructured terms but may remain classified as nonearning until
there has been a period of satisfactory payment performance by the borrower and future payments are reasonably assured of collection.
(c) Change from December 31, 2009, reflects the impact of adoption of ASU 2009-17, amendments to ASC 810, Consolidation.
(d) Losses on financing receivables are recognized when they are incurred, which requires us to make our best estimate of probable losses inherent in the portfolio. Such estimate requires consideration of historical loss experience, adjusted for current conditions, and
judgments about the probable effects of relevant observable data, including present economic conditions such as delinquency rates, financial health of specific customers and market sectors, collateral values (including housing price indices as applicable), and the
present and expected future levels of interest rates. Our risk management process includes standards and policies for reviewing major risk exposures and concentrations, and evaluates relevant data either for individual loans or financing leases, on a portfolio basis,
as appropriate. Effective January 1, 2009, loans acquired in a business acquisition are recorded at fair value, which incorporates our estimate at the acquisition date of the credit losses over the remaining life of the portfolio. As a result, the allowance for loan losses
is not carried over at acquisition. This may result in lower reserve coverage ratios prospectively.
(e) Write-offs percent is calculated as the ratio of annualized write-offs for the quarter divided by average of financing receivables at the beginning and end of the period.
16
GE Capital - portfolio overview
(In millions, unless otherwise noted)
Balances
March 31,
2010
Real Estate (c)
EFS
GECAS (f)
Other
$
47,586
7,854
12,615
2,445
$
March 31,
2010
Real Estate
EFS
GECAS (f)
Other
$
1,748
80
77
100
$
48,673
7,790
13,254
2,614
$
$
$
$
$
45,471
8,362
12,926
3,095
$
1,252
78
153
72
$
1,320
360
194
78
1,536
28
104
34
$
1,494
28
104
34
$
1,028
101
126
23
$
73
67
15
2
$
104
1
7
46,018
8,506
12,901
3,324
$
$
1,325
241
189
70
$
$
554
241
191
62
March 31,
2009
570
92
58
27
$
June 30,
2009
$
45,373
8,360
13,189
3,863
March 31,
2009
June 30,
2009
Write-offs (net) - for three months ending
December 31,
September 30,
2009
2009
188
71
2
March 31,
2009
June 30,
2009
Allowance for losses (e)
December 31,
September 30,
2009
2009
January 1,
2010 (b)
1,557
47
54
46
44,841
7,790
13,254
2,614
June 30,
2009
Nonearning receivables (d)
December 31,
September 30,
2009
2009
1,358
78
153
72
March 31,
2010
Real Estate (c)
EFS
GECAS (f)
Other
$
January 1,
2010 (b)
March 31,
2010
Real Estate
EFS
GECAS (f)
Other
Financing receivables (a)
December 31,
September 30,
2009
2009
January 1,
2010 (b)
396
66
58
32
March 31,
2009
76
4
$
9
10
(a) Financing receivables include $7,479 million, $162 million, $102 million and $99 million of impaired loans at Real Estate, EFS, GECAS, and Other, respectively, at March 31, 2010, included in the Real Estate balance
is $106 of impaired loans that were consolidated with the adoption of ASU 2009-17, amendments to ASC 810, Consolidation.
(b) Change from December 31, 2009, reflects the impact of adoption of ASU 2009-17, amendments to ASC 810, Consolidation.
(c) Financing receivables included $244 million of construction loans at March 31, 2010.
(d) Nonearning receivables are those that are 90 days or more past due (or for which collection has otherwise become doubtful). Nonearning receivables exclude loans purchased at a discount (unless they have deteriorated post acquisition). Under FASB ASC 310, Receivables,
these loans are initially recorded at fair value and accrete interest income over the estimated life of the loan based on reasonably estimable cash flows even if the underlying loans are contractually delinquent at acquisition. In addition, nonearning receivables exclude loans which
are paying currently under a cash accounting basis, but classified as impaired. Recently restructured financing receivables are not considered delinquent when payments are brought current according to restructured terms but may remain classified as nonearning until there has
been a period of satisfactory payment performance by the borrower and future payments are reasonably assured of collection.
(e) Losses on financing receivables are recognized when they are incurred, which requires us to make our best estimate of probable losses inherent in the portfolio. Such estimate requires consideration of historical loss experience, adjusted for current conditions, and judgments
about the probable effects of relevant observable data, including present economic conditions such as delinquency rates, financial health of specific customers and market sectors, collateral values (including housing price indices as applicable), and the present and expected
future levels of interest rates. Our risk management process includes standards and policies for reviewing major risk exposures and concentrations, and evaluates relevant data either for individual loans or financing leases, on a portfolio basis, as appropriate. Effective
January 1, 2009, loans acquired in a business acquisition are recorded at fair value, which incorporates our estimate at the acquisition date of the credit losses over the remaining life of the portfolio. As a result, the allowance for loan losses is not carried over at acquisition.
This may result in lower reserve coverage ratios prospectively.
(f) During the first quarter of 2010, we transferred the Transportation Financial Services business from GECAS to CLL. Prior-period amounts were reclassified to conform to current-period's presentation.
17
GE Capital - portfolio overview
Ratios
Nonearning receivables as as percent of financing receivables (a)
January 1,
December 31,
September 30,
2010 (b)
2009
2009
March 31,
2010
Real Estate
EFS
GECAS (e)
Other
3.7 %
1.0
0.6
4.1
89.1 %
58.8
70.1
46.0
3.3 %
0.6
0.4
1.9
1.6 %
2.2
0.3
119.3 %
35.9
68.0
47.2
3.2 %
0.4
0.8
1.3
3.3 %
0.4
0.8
1.3
0.6 %
3.3
0.5
0.3
Real Estate
December 31,
2009
March 31,
2010
Managed delinquency
113.1 %
35.9
68.0
47.2
4.97 %
4.22 %
June 30,
2009
March 31,
2009
June 30,
2009
71.5 %
27.4
30.4
51.6
March 31,
2009
1.2 %
1.1
0.4
0.8
June 30,
2009
0.9 %
NM
NM
0.9
4.09 %
1.2 %
2.9
1.4
1.6
43.0 %
38.2
30.7
38.6
2.3 %
1.2
1.0
0.7
September 30,
2009
March 31,
2009
2.9 %
2.8
1.5
2.1
77.9 %
28.1
64.9
29.5
Write-offs as a percent of financing receivables (d)
December 31,
September 30,
2009
2009
March 31,
2010
Real Estate
EFS
GECAS (e)
Other
2.9 %
4.3
1.5
2.5
Allowance for losses as a percent of total financing receivables (c)
January 1,
December 31,
September 30,
2010 (b)
2009
2009
March 31,
2010
Real Estate
EFS
GECAS (e)
Other
2.8 %
1.0
1.2
2.8
Allowance for losses as a percent of nonearning receivables (c)
January 1,
December 31,
September 30,
2010 (b)
2009
2009
March 31,
2010
Real Estate
EFS
GECAS (e)
Other
2.8 %
1.0
1.2
2.8
June 30,
2009
0.9 %
0.8
0.4
0.8
March 31,
2009
0.7 %
NM
NM
0.4
June 30,
2009
0.1 %
NM
NM
1.0
March 31,
2009
3.88 %
2.22 %
(a) Nonearning receivables are those that are 90 days or more past due (or for which collection has otherwise become doubtful). Nonearning receivables exclude loans purchased at a discount (unless they have deteriorated post acquisition).
Under FASB ASC 310, Receivables, these loans are initially recorded at fair value and accrete interest income over the estimated life of the loan based on reasonably estimable cash flows even if the underlying loans are contractually
delinquent at acquisition. In addition, nonearning receivables exclude loans which are paying currently under a cash accounting basis, but classified as impaired. Recently restructured financing receivables are not considered delinquent
when payments are brought current according to restructured terms but may remain classified as nonearning until there has been a period of satisfactory payment performance by the borrower and future payments are reasonably assured
of collection.
(b) Change from December 31, 2009, reflects the impact of adoption of ASU 2009-17, amendments to ASC 810, Consolidation.
(c) Losses on financing receivables are recognized when they are incurred, which requires us to make our best estimate of probable losses inherent in the portfolio. Such estimate requires consideration of historical loss experience, adjusted
for current conditions, and judgments about the probable effects of relevant observable data, including present economic conditions such as delinquency rates, financial health of specific customers and market sectors, collateral values
(including housing price indices as applicable), and the present and expected future levels of interest rates. Our risk management process includes standards and policies for reviewing major risk exposures and concentrations, and evaluates
relevant data either for individual loans or financing leases, on a portfolio basis, as appropriate. Effective January 1, 2009, loans acquired in a business acquisition are recorded at fair value, which incorporates our estimate at the acquisition
date of the credit losses over the remaining life of the portfolio. As a result, the allowance for loan losses is not carried over at acquisition. This may result in lower reserve coverage ratios prospectively.
(d) Write-offs percent is calculated as the ratio of annualized write-offs for the quarter divided by average of financing receivables at the beginning and end of the period.
(e) During the first quarter of 2010, we transferred the Transportation Financial Services business from GECAS to CLL. Prior-period amounts were reclassified to conform to current-period's presentation.
18
GE Capital - consumer allowance for losses on financing receivables
(In millions)
Consumer (d)
Non - U.S. residential mortgages
Non - U.S. installment and revolving credit
U.S. installment and revolving credit
Non - U.S. auto
Other
Total
Balance
December 31,
2009
Provision
charged to
operations (b)
Balance
January 1,
2010
Adoption of ASU
2009-17 (a)
Other (c)
Gross writeoffs
Balance
March 31,
2010
Recoveries
$
949
1,181
1,698
308
300
$
1,602
-
$
949
1,181
3,300
308
300
$
108
354
939
43
107
$
(66)
(7)
(10)
(8)
$
(105)
(543)
(1,249)
(98)
(110)
$
27
154
135
51
19
$
913
1,139
3,125
294
308
$
4,436
$
1,602
$
6,038
$
1,551
$
(91)
$
(2,105)
$
386
$
5,779
(In millions)
Consumer (d)
Non - U.S. residential mortgages
Non - U.S. installment and revolving credit
U.S. installment and revolving credit
Non - U.S. auto
Other
Total
Provision
charged to
operations
Balance
January 1,
2009
Other (e)
Gross writeoffs
Balance
March 31,
2009
Recoveries
$
381
1,049
1,700
203
226
$
236
427
905
117
74
$
(36)
(49)
(229)
8
(36)
$
(80)
(491)
(695)
(141)
(76)
$
23
97
37
42
11
$
524
1,033
1,718
229
199
$
3,559
$
1,759
$
(342)
$
(1,483)
$
210
$
3,703
(a) On January 1, 2010, we adopted ASU 2009-17, amendments to ASC 810, Consolidation, that required us to consolidate the allowance for losses of VIEs consolidated on January 1, 2010.
(b) Included $385 million of provisions for VIEs consolidated on January 1, 2010.
(c) Other primarily included the effects of currency exchange.
(d) During the first quarter of 2010, we transferred the Consumer business in Italy from Consumer to CLL. Prior-period amounts were reclassified to conform to current-period's presentation.
(e) Other primarily included the effects of securitization activity and currency exchange.
19
GE Capital - consumer financing receivables by region
(In millions)
March 31, 2010
Installment and
revolving credit (b)
Mortgages
U.S.
Europe
Western
Eastern
Pacific Basin
Americas
Other
$
Total at March 31, 2010
$
-
$
33,074
8,054
7,376
3,670
548
September 30, 2009
52,722
$
Total at September 30, 2009
$
-
$
March 31, 2009
$
$
Total at March 31, 2009
$
-
$
$
22,324
47,287
$
25,286
12,025
$
$
47,340
$
$
$
10,898
14,196
1,040
$
11,975
$
$
7,505
1,845
4,214
297
63
13,924
1,183
$
10,294
23,364
57,787
21,751
21,251
9,248
869
$
134,270
December 31, 2009
Mortgages
U.S.
Europe
Western
Eastern
Pacific Basin
Americas
Other
$
Total at December 31, 2009
$
-
Installment and
revolving credit
$
36,503
8,297
9,284
3,672
589
June 30, 2009
58,345
Mortgages
U.S.
Europe
Western
Eastern
Pacific Basin
Americas
Other
$
Total at June 30, 2009
$
-
$
$
48,166
23,939
$
49,201
13,344
$
$
981
$
11,688
-
$
14,661
1,074
$
11,963
131,543
Total
$
4,372
4,391
421
1,705
$
24,171
55,614
21,174
20,463
9,346
775
Other (a)
7,451
1,864
4,507
772
67
$
Total
4,014
4,799
361
1,533
-
Auto
8,527
5,894
6,973
3,605
263
$
$
6,799
1,728
4,087
691
39
Installment and
revolving credit
$
Other (a)
-
8,298
6,350
6,731
3,450
147
37,891
8,067
11,739
3,736
667
62,100
23,190
Auto
25,013
58,241
20,216
23,640
9,818
997
$
137,925
Total
$
4,265
4,065
544
237
$
143,231
Total
Other (a)
-
44,254
50,766
20,300
18,130
9,101
680
4,157
4,953
354
1,471
-
Auto
$
924
Other (a)
-
$
Total
3,632
4,529
342
1,471
-
7,215
1,877
4,321
727
56
8,059
5,665
6,042
1,976
312
$
$
Auto
Installment and
revolving credit
34,131
7,468
12,067
2,183
657
56,506
-
8,624
6,509
6,274
3,361
195
Mortgages
U.S.
Europe
Western
Eastern
Pacific Basin
Americas
Other
67,586
Other (a)
6,051
1,572
3,728
649
25
Installment and
revolving credit
37,791
8,412
10,302
3,689
618
60,812
$
8,009
6,145
6,684
3,311
107
Mortgages
U.S.
Europe
Western
Eastern
Pacific Basin
Americas
Other
43,330
Auto
26,469
53,960
19,043
22,867
4,693
1,032
$
128,064
(a) Represents mainly small and medium enterprise loans.
(b) Includes $23,981 million related to consolidated VIE loans and leases consolidated on January 1, 2010.
20
GE Capital - consumer mortgage portfolio by country (a)
(In millions)
Financing
receivables
March 31, 2010
As a % of
total
Nonearning
receivables
Delinquent more
than 30 days
Financing
receivables
December 31, 2009
As a % of
total
U.K. (b) (d)
Australia
France (d)
Poland
Mexico
Spain
Hungary
All other
$
19,236
6,328
10,280
5,518
2,019
1,211
1,025
7,105
36.5 %
12.0
19.5
10.5
3.8
2.3
1.9
13.5
16.1 %
1.1
2.0
0.8
8.7
20.3
6.1
6.0
24.4 %
8.7
3.2
1.8
12.7
29.4
10.0
10.3
U.K.
Australia
France
Poland
Mexico
Spain
Hungary
All other
$
21,146
7,319
11,455
5,652
2,033
1,316
1,059
8,365
36.2 %
12.5
19.6
9.7
3.5
2.3
1.8
14.3
Total at March 31, 2010 (c)
$
52,722
100.0 %
8.2 %
13.5 %
Total at December 31, 2009
$
58,345
100.0 %
Financing
receivables
September 30, 2009
As a % of
total
U.K.
Australia
France
Poland
Mexico
Spain
Hungary
All other
$
22,135
8,159
11,710
5,698
1,973
1,317
1,073
8,747
36.4 %
13.4
19.3
9.4
3.2
2.2
1.8
14.4
Total at September 30, 2009
$
60,812
100.0 %
Financing
receivables
March 31, 2009
As a % of
total
Nonearning
receivables
16.1
0.6
1.8
0.4
7.7
21.6
3.8
4.8
Delinquent more
than 30 days
%
7.8 %
Nonearning
receivables
25.8
5.7
3.0
1.5
11.7
31.8
8.2
9.1
Financing
receivables
June 30, 2009
%
13.4 %
As a % of
total
U.K.
Australia
France
Poland
Mexico
Spain
Hungary
All other
$
22,745
9,495
11,376
5,505
2,018
1,288
1,044
8,629
36.6 %
15.3
18.3
8.9
3.2
2.1
1.7
13.9
Total at June 30, 2009
$
62,100
100.0 %
Nonearning
receivables
15.6
0.6
1.9
0.7
8.3
19.6
4.6
5.0
Delinquent more
than 30 days
25.2
6.5
2.9
1.6
12.8
29.4
8.6
9.5
%
7.7 %
Nonearning
receivables
15.8
2.4
1.6
0.5
7.3
19.7
2.2
4.5
%
13.3 %
Delinquent more
than 30 days
%
7.8 %
25.9
5.2
2.8
1.5
11.4
30.3
6.5
9.1
%
13.3 %
Delinquent more
than 30 days
U.K.
Australia
France
Poland
Mexico
Spain
Hungary
All other
$
20,004
9,797
10,527
5,020
1,865
1,236
961
7,096
35.4 %
17.3
18.6
8.9
3.3
2.2
1.7
12.6
14.1 %
2.3
1.4
0.4
5.6
17.5
1.8
4.1
23.7 %
5.0
2.5
1.3
8.9
28.1
5.0
7.7
Total at March 31, 2009
$
56,506
100.0 %
6.8 %
11.8 %
(a) Consumer loans secured by residential real estate (both revolving and closed-end loans) are written down to the fair value of collateral, less costs to sell, no later than when they become 360 days past due.
(b) At March 31, 2010, we had in repossession stock approximately 1,000 houses in the U.K., which had a value of approximately $0.2 billion.
(c) At March 31, 2010, net of credit insurance, approximately 24% of this portfolio comprised loans with introductory, below market rates that are scheduled to adjust at future dates; with high loan-to-value ratios at inception; 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. 81% of these loans are in our U.K. and France portfolios, which comprise mainly loans with
interest-only payments and introductory below market rates, have a delinquency rate of 18.1% and have loan-to-value at origination of 74%. At March 31, 2010, 1% (based on dollar values) of these loans in our U.K. and France portfolios have been restructured.
(d) Our U.K. and France portfolios have reindexed loan-to-value ratios of 82% and 67%, respectively.
21
GE Capital - commercial allowance for losses on financing receivables
(In millions)
CLL (d)
Americas
Europe
Asia
Other
Balance
December 31,
2009
$
Real Estate
1,179
575
244
11
GECAS (d)
Total
$
1,494
EFS
$
Balance
January 1,
2010 (b)
Adoption of ASU
2009-17 (a)
66
(10)
-
$
42
$
325
72
50
1
1,536
211
Gross
write-offs
Other (c)
$
(4)
(31)
(2)
(2)
(282)
(147)
(50)
-
$
35
15
4
-
(189)
$
1
1,319
484
236
12
1,557
-
28
19
-
-
-
47
104
-
104
21
-
(71)
-
54
$
98
$
3,733
Balance
January 1,
2009
(In millions)
$
Real Estate
843
311
163
4
$
699
$
Provision
charged to
operations
$
271
123
50
-
(39)
Other (c)
$
(9)
(12)
(11)
3
110
(6)
EFS
58
10
(2)
GECAS (d)
58
$
1,738
$
564
$
$
(37)
(201)
(82)
(28)
-
$
$
55
Recoveries
$
(9)
$
(739)
Gross
write-offs
301
Total
$
Recoveries
Balance
March 31,
2010
28
3,635
CLL (d)
Americas
Europe
Asia
Other
1,245
575
234
11
Provision
charged to
operations
16
14
4
-
$
3,709
Balance
March 31,
2009
$
920
354
178
7
-
396
-
-
66
-
-
58
(320)
$
34
$
1,979
(a) On January 1, 2010, we adopted ASU 2009-17, amendments to ASC 810, Consolidation, that required us to consolidate the allowance for losses of VIEs consolidated on January 1, 2010.
(b) Included $44 million and $11 million of provisions for CLL and Real Estate, respectively, related to VIEs consolidated on January 1, 2010.
(c) Other primarily included the effects of currency exchange.
(d) During the first quarter of 2010, we transferred the Transportation Financial Services business from GECAS to CLL and the Consumer business in Italy from Consumer to CLL.
Prior-period amounts were reclassified to conform to current-period's presentation.
22
GE Capital - commercial real estate debt overview
(In millions)
March 31,
2010
Region
December 31,
2009
Financing receivables
September 30,
2009
June 30,
2009
March 31,
2009
U.S. (a)
Europe
Pacific Basin
Americas
$
30,505
5,103
3,135
8,843
$
27,008
5,807
3,235
8,791
$
27,542
5,986
3,133
8,810
$
28,231
5,953
3,105
8,729
$
28,669
5,435
3,124
8,145
Total (b)
$
47,586
$
44,841
$
45,471
$
46,018
$
45,373
March 31,
2010
Vintage profile
Originated in
pre-2007
2007
2008
2009
2010
Total
March 31,
2010
Property type
December 31,
2009
Financing receivables
September 30,
2009
June 30,
2009
March 31,
2009
Office buildings
Owner occupied
Apartment buildings
Hotel properties
Warehouse properties
Retail facilities
Mixed use
Parking facilities
Other
$
10,923
12,227
7,418
5,117
4,231
4,229
1,304
124
2,013
$
11,121
8,276
7,649
5,152
4,349
4,302
1,395
122
2,475
$
11,171
8,431
7,932
5,153
4,383
4,377
1,389
128
2,507
$
11,122
8,539
8,330
5,309
4,383
4,371
1,341
133
2,490
$
10,905
8,607
8,329
5,149
4,304
4,146
1,326
124
2,483
Total (b)
$
47,586
$
44,841
$
45,471
$
46,018
$
45,373
March 31,
2010
Contractual maturities
$
16,960
13,755
16,714
155
2
Due in
2010 and prior (c)
2011
2012
2013
2014 and later
$
47,586
Total
$
11,290
10,203
7,122
3,348
15,623
$
47,586
(a) Balance at March 31, 2010 includes $3,832 million of consolidated VIE loans and leases consolidated on January 1, 2010.
(b) Represents total gross financing receivables for Real Estate only.
(c) Includes $708 million relating to loans with contractual maturities prior to January 1, 2010.
23
GE Capital - commercial real estate equity overview (a)
(In millions, unless otherwise noted)
March 31,
2010
Region
December 31,
2009
Equity
September 30,
2009
June 30,
2009
March 31,
2009
U.S.
Europe
Pacific Basin
Americas
$
9,531
10,864
7,523
3,053
$
9,892
11,705
7,966
3,027
$
10,067
12,384
7,902
3,031
$
10,055
12,120
7,595
3,006
$
10,173
11,142
7,320
2,785
Total
$
30,971
$
32,590
$
33,384
$
32,776
$
31,420
March 31,
2010
Vintage profile (e)
Originated in
pre-2007
2007
2008
2009
2010
Total
$
$
14,270
13,390
2,582
568
161
March 31,
2010
Property type
December 31,
2009
Equity
September 30,
2009
June 30,
2009
March 31,
2009
Office buildings
Apartment buildings
Warehouse properties
Retail facilities
Mixed use
Parking facilities
Owner occupied
Hotel properties
Other
$
15,602
4,334
3,775
2,993
1,622
824
745
347
729
$
16,340
4,747
3,869
3,194
1,723
787
724
421
785
$
16,714
4,708
4,054
3,244
1,829
841
714
424
856
$
16,543
4,585
3,994
3,162
1,802
834
687
357
812
$
15,637
4,442
3,772
2,884
1,759
837
669
360
1,060
Total
$
30,971
$
32,590
$
33,384
$
32,776
$
31,420
March 31,
2010
Key metrics
Owned real estate (b)
$
Net operating income (annualized)
Net operating income yield (c)
$
End of period vacancies (d)
26,915
December 31,
2009
$
1,488
$
5.4 %
20.6 %
28,365
September 30,
2009
$
1,628
$
5.7 %
20.6 %
29,005
June 30,
2009
$
1,621
$
5.6 %
20.7 %
28,591
March 31,
2009
$
1,606
$
5.7 %
20.3 %
27,581
1,569
5.6 %
18.7 %
30,971
Foreclosed properties
$
718
$
779
$
729
$
508
$
254
(a) Includes real estate investments related to Real Estate only.
(b) Excludes joint ventures, equity investment securities, and foreclosed properties.
(c) Net operating income yield is calculated as annualized net operating income for the relevant quarter as a percentage of the average owned real estate.
(d) Excludes hotel properties, apartment buildings and parking facilities.
(e) Includes foreclosed properties based on date of foreclosure.
24
GE Capital - equipment leased to others (ELTO), net of depreciation and amortization overview (a)
(In millions)
March 31, 2010
Collateral type
CLL
Aircraft
Vehicles
Railroad rolling stock
Construction and manufacturing
Mobile equipment
All other
$
Total at March 31, 2010
$
December 31, 2009
Collateral type
GECAS
3,179
10,256
2,870
1,687
1,801
979
$
20,772
$
CLL
Aircraft
Vehicles
Railroad rolling stock
Construction and manufacturing
Mobile equipment
All other
$
Total at December 31, 2009
$
September 30, 2009
Collateral type
$
Total at September 30, 2009
$
30,207
-
$
30,207
$
GECAS
3,246
11,509
2,887
1,696
1,910
967
$
22,215
$
CLL
Aircraft
Vehicles
Railroad rolling stock
Construction and manufacturing
Mobile equipment
All other
EFS
$
23,848
$
1,232
$
1,232
$
29,737
-
$
29,737
$
$
30,287
$
$
1
2
14
27
$
Consumer
952
$
952
$
-
$
1
2
15
28
$
Consumer
793
$
793
$
-
CLL
Aircraft
Vehicles
Railroad rolling stock
Construction and manufacturing
Mobile equipment
All other
$
52,238
Total at June 30, 2009
$
March 31, 2009
Collateral type
GECAS
3,009
12,892
2,914
2,039
2,001
1,207
$
24,062
$
CLL
32,983
11,519
2,887
1,697
1,912
1,934
Aircraft
Vehicles
Railroad rolling stock
Construction and manufacturing
Mobile equipment
All other
$
52,932
Total at March 31, 2009
$
EFS
30,019
-
$
30,019
$
GECAS
3,277
13,024
2,966
2,059
2,024
1,036
$
24,386
$
Consumer
796
$
796
$
$
29,412
$
$
33,028
12,903
2,914
2,040
2,002
2,020
$
54,907
11
1
1
17
EFS
29,412
-
-
Total
30
Consumer
800
$
800
$
-
Total
$
32,689
13,037
2,966
2,059
2,025
1,852
$
54,628
13
1
16
30
Total
$
33,532
12,774
2,903
1,814
1,913
2,023
$
54,959
12
1
3
15
31
June 30, 2009
Collateral type
33,386
10,266
2,870
1,688
1,803
2,225
Total
10
EFS
30,287
-
-
Total
10
EFS
GECAS
3,245
12,762
2,903
1,813
1,910
1,215
Consumer
(a) During the first quarter of 2010, we transferred the Transportation Financial Services business from GECAS to CLL. Prior-period amounts were reclassified to conform to current-period's presentation.
25
GE Capital - commercial aircraft asset details (a)
March 31,
2010
Collateral type (In millions)
December 31,
2009
Loans and leases
September 30,
2009
June 30,
2009
March 31,
2009
Narrow-body aircraft
Wide-body aircraft
Cargo
Regional jets
Engines
$
22,692
9,044
2,899
5,601
2,467
$
22,882
8,532
3,030
5,931
2,480
$
22,927
8,710
2,991
6,023
2,385
$
22,663
8,695
3,027
6,100
2,231
$
22,199
9,889
1,719
6,144
2,370
Total
$
42,703
$
42,855
$
43,036
$
42,716
$
42,321
March 31,
2010
Airline regions (In millions)
December 31,
2009
Loans and leases
September 30,
2009
June 30,
2009
March 31,
2009
U.S.
Europe
Pacific Basin
Americas
Other
$
14,321
9,552
7,657
5,882
5,291
$
14,700
9,642
6,481
6,099
5,933
$
14,514
9,858
7,554
5,708
5,402
$
14,606
9,705
7,227
5,273
5,905
$
13,781
9,866
7,023
5,332
6,319
Total
$
42,703
$
42,855
$
43,036
$
42,716
$
42,321
GECS aircraft
Vintage proflie
March 31,
2010
0-5 years
6-10 years
11 - 15 years
15+ years
$
14,863
15,085
5,474
4,814
Total (b)
$
40,236
(a) Includes loans and financing leases of $12,615 million, $13,254 million, $12,927 million, $ 12,901 million, and $13,189 million (less non-aircraft loans and financing leases of $119 million,
$136 million, $178 million, $204 million, and $280 million) and ELTO of $30,207 million, $29,737 million, $30,287 million, $30,019 million, and $29,412 million at March 31, 2010,
December 31, 2009, September 30, 2009, June 30, 2009, and March 31, 2009, respectively, related to commercial aircraft at GECAS.
(b) Excludes aircraft engine loans and leases of $2,467 million at March 31, 2010.
26
GE Capital other key areas
27
GE Capital - investment securities
(In millions)
Debt
U.S. corporate (a)
State and municipal
Residential mortgage-backed (b)
Commercial mortgage-backed
Asset-backed
Corporate - non-U.S.
Government - non-U.S.
U.S. government and federal agency
Amortized
cost
$
4,120
880
2,683
1,643
2,394
1,718
1,888
642
Retained interests (c)
Equity
Available-for-sale
Trading
Total
(In millions)
Debt
U.S. corporate
State and municipal
Residential mortgage-backed
Commercial mortgage-backed
Asset-backed
Corporate - non-U.S.
Government - non-U.S.
U.S. government and federal agency
$
$
81
5
21
16
53
35
15
1
$
(170)
(189)
(543)
(231)
(264)
(78)
(33)
-
Estimated
fair value
$
4,031
696
2,161
1,428
2,183
1,675
1,870
643
Amortized
cost
$
$
83
3
21
5
29
18
15
$
-
(236)
(216)
(722)
(302)
(298)
(26)
(25)
-
$
5,062
674
2,298
1,302
2,199
986
2,451
1,865
(22)
43
8,479
392
(40)
8,831
950
426
145
-
(14)
-
1,081
426
897
720
227
-
(3)
-
1,121
720
17,406
$
858
94
67
39
62
219
421
-
$
375
$
(6)
(9)
(5)
(3)
(17)
(32)
(4)
-
$
43
$
$
Estimated
fair value
3
-
Equity
5,215
887
2,999
1,599
2,468
994
2,461
1,865
At December 31, 2009
Gross
Gross
unrealized
unrealized
gains
losses
62
(1,544)
$
16,237
$
At March 31, 2010 - In loss position for
Less than 12 months
12 months or more
Gross
Gross
Estimated
unrealized
Estimated
unrealized
fair value
losses
fair value
losses
Retained interests
Total
At March 31, 2010
Gross
Gross
unrealized
unrealized
gains
losses
1,803
(13)
$
(89)
$
883
577
1,357
1,032
1,229
360
176
-
$
(164)
(180)
(538)
(228)
(247)
(46)
(29)
-
28,584
$
793
$
(1,868)
$
27,509
At December 31, 2009 - In loss position for
Less than 12 months
12 months or more
Gross
Gross
Estimated
unrealized
Estimated
unrealized
fair value
losses
fair value
losses
$
611
237
74
68
310
370
-
$
(20)
(120)
(4)
(7)
(14)
(3)
-
$
1,365
421
1,561
1,015
1,312
346
195
-
$
(216)
(96)
(718)
(302)
(291)
(12)
(22)
-
15
(22)
208
(16)
27
(24)
4
(1)
23
(1)
8
(2)
5,633
$
(1,455)
$
1,901
$
(185)
$
6,250
$
(1,683)
(a) Included $65 million of U.S. corporate debt securities at March 31, 2010, related to our adoption of ASU 2009-16 & 17 on January 1, 2010.
(b) Substantially collateralized by U.S. mortgages.
(c) Included $1,918 million of retained interests at December 31, 2009 accounted for at fair value in accordance with ASC 815, Derivatives and Hedging.
28
GE Capital - investments measured at fair value in earnings (a)
Asset balances at
March 31,
2010
Investment type (In millions)
Equities - trading
$
Retained interests
December 31,
2009
426
$
720
Net earnings impact for
three months ending
March 31, 2010
$
14
-
1,939
-
2,535
3,708
-
Assets of businesses held for sale (LOCOM)
949
125
-
Investment companies
404
477
Assets held for sale (LOCOM)
Total
$
4,314
$
6,969
(1)
$
13
(a) Excludes derivatives portfolio.
29
GE Capital - ending net investment (ENI)
March 31,
2010
(In billions)
GECC total assets
$
Less: assets of discontinued operations
Less: non-interest bearing liabilities
GE Capital ENI
$
Less: cash and equivalents
GE Capital ENI, excluding cash and equivalents
618.2
January 1,
2010
$
$
622.7
(1.0)
(1.5)
(1.5)
(42.0)
(42.2)
(48.1)
575.2
$
(59.6)
$
653.6
December 31,
2009
515.6
609.9
$
(63.9)
$
546.0
573.1
(63.7)
$
509.4
30
GECC - ratios
Debt to equity ratio
(In billions)
March 31,
2010
Debt
Equity (a)
January 1,
2010
December 31,
2009
September 30,
2009
June 30,
2009
March 31,
2009
$501.7
71.7
$535.7
72.2
$497.5
73.7
$505.1
73.2
$499.3
71.7
$490.7
65.6
7.0:1
7.4:1
6.7:1
6.9:1
7.0:1
7.5:1
$501.7
(7.7)
(59.6)
434.4
$535.7
(7.7)
(63.7)
464.2
$497.5
(7.7)
(63.7)
426.0
$505.1
(7.7)
(56.3)
441.1
$499.3
(7.7)
(49.2)
442.4
$490.7
(7.7)
(44.0)
439.0
Equity (a)
Add: hybrid debt
Adjusted equity
71.7
7.7
79.4
72.2
7.7
79.9
73.7
7.7
81.4
73.2
7.7
80.9
71.7
7.7
79.4
65.6
7.7
73.4
Adjusted debt to equity ratio
5.5:1
5.8:1
5.2:1
5.5:1
5.6:1
6.0:1
Debt to equity ratio
Debt
Less: hybrid debt
Less: cash and equivalents
Adjusted debt
Tangible common equity to tangible assets ratio
(In billions)
March 31,
2010
January 1,
2010
December 31,
2009
September 30,
2009
June 30,
2009
March 31,
2009
Total equity (a)
Less: Goodwill and other intangibles
$
71.7
(31.3)
$
72.2
(32.0)
$
73.7
(32.0)
$
73.2
(31.6)
$
71.7
(31.3)
$
65.6
(27.8)
Tangible common equity
$
40.4
$
40.2
$
41.7
$
41.6
$
40.5
$
37.8
Total assets
Less: Goodwill and other intangibles
$
618.2
(31.3)
$
653.6
(32.0)
$
622.7
(32.0)
$
630.2
(31.6)
$
624.3
(31.3)
$
611.4
(27.8)
Tangible assets
$
587.0
$
621.7
$
590.7
$
598.7
$
593.1
$
583.6
Tangible common equity to tangible assets
6.9 %
6.5 %
7.1 %
7.0 %
6.8 %
6.5 %
Tier 1 common ratio (b)
7.8 %
7.5 %
7.6 %
7.5 %
7.4 %
7.2 %
(a) Equity represents amounts available to GECC shareholders, excluding noncontrolling interests.
(b) Estimated based on SCAP requirements.
31
GECS supplemental information
32
GECS - assets by region (a), (b)
At
(In millions)
March 31,
2010
Property, plant and
equipment (net)
Financing
receivables (net)
167,575
$
U.S.
Europe
Western (including U.K.)
Eastern
Pacific Basin
Americas (excluding U.S.)
Other
$
Total
$
356,185
$
55,926
$
645,108
Total at December 31, 2009
$
336,926
$
56,717
$
648,771
Total at September 30, 2009
$
348,518
$
58,712
$
656,781
Total at June 30, 2009
$
358,949
$
58,649
$
649,172
Total at March 31, 2009
$
354,480
$
58,190
$
633,913
87,707
19,800
33,797
32,234
15,072
12,408
Total assets
$
339,862
$
118,749
30,616
57,670
44,167
54,044
6,892
391
2,824
1,351
32,060
December 31,
2009
September 30,
2009
June 30,
2009
March 31,
2009
Total assets
Total assets
Total assets
Total assets
329,622
$
130,845
31,499
60,233
42,333
54,239
$
648,771
328,662
$
136,119
32,044
62,986
42,921
54,049
$
656,781
323,060
$
136,019
29,290
63,659
42,858
54,286
$
649,172
329,139
128,885
27,170
61,705
32,308
54,706
$
633,913
(a) Excludes assets of discontinued operations.
(b) Prior period amounts have been reclassified to conform to current-period's presentation.
33
GECS - investment securities
(In millions)
Debt
U.S. corporate (a)
State and municipal
Residential mortgage-backed (b)
Commercial mortgage-backed
Asset-backed
Corporate - non-U.S.
Government - non-U.S.
U.S. government and federal agency
Amortized
cost
$
Retained interests (c)
Equity
Available-for-sale
Trading
Total
(In millions)
Debt
U.S. corporate
State and municipal
Residential mortgage-backed
Commercial mortgage-backed
Asset-backed
Corporate - non-U.S.
Government - non-U.S.
U.S. government and federal agency
$
$
1,009
43
84
142
77
85
68
47
$
(571)
(210)
(574)
(340)
(269)
(95)
(36)
(10)
Estimated
fair value
$
23,228
1,963
3,194
2,872
2,733
2,568
2,379
1,432
Amortized
cost
$
$
981
34
79
89
48
59
63
46
$
(756)
(246)
(766)
(440)
(305)
(50)
(29)
-
$
23,635
1,794
3,318
2,702
2,737
1,840
2,936
2,674
(22)
43
8,479
392
(40)
8,831
550
426
149
-
(14)
-
685
426
489
720
242
-
(5)
-
726
720
41,957
$
3,906
373
74
47
68
263
479
306
$
1,707
$
5,582
(74)
(15)
(6)
(3)
(20)
(33)
(7)
(10)
$
-
66
$
$
Estimated
fair value
3
-
Equity
23,410
2,006
4,005
3,053
2,994
1,831
2,902
2,628
At December 31, 2009
Gross
Gross
unrealized
unrealized
losses
gains
62
(2,141)
$
41,523
$
At March 31, 2010 - In loss position for
Less than 12 months
12 months or more
Estimated
Gross
Estimated
Gross
Retained interests
Total
22,790
2,130
3,684
3,070
2,925
2,578
2,347
1,395
At March 31, 2010
Gross
Gross
unrealized
unrealized
losses
gains
(12)
$
(180)
$
4,145
698
1,512
1,295
1,255
502
177
-
$
52,517
$
2,033
$
(2,637)
$
51,913
At December, 31 2009 - In loss position for
Less than 12 months
12 months or more
Estimated
Gross
Estimated
Gross
(497)
(195)
(568)
(337)
(249)
(62)
(29)
-
$
3,146
592
118
167
126
374
399
-
$
(88)
(129)
(14)
(5)
(11)
(18)
(4)
-
$
4,880
535
1,678
1,293
1,342
481
224
-
$
(668)
(117)
(752)
(435)
(294)
(32)
(25)
-
15
(22)
208
(16)
27
(24)
6
(2)
92
(2)
10
(3)
9,605
$
(1,961)
$
5,222
$
(287)
$
10,470
$
(2,350)
(a) Included $65 million of U.S. corporate debt securities at March 31, 2010, related to our adoption of ASU 2009-16 & 17 on January 1, 2010.
(b) Substantially collateralized by U.S. mortgages.
(c) Included $1,918 million of retained interests at December 31, 2009 accounted for at fair value in accordance with ASC 815, Derivatives and Hedging.
34
GECS - funding
March 31,
2010
(In billions)
December 31,
2009
September 30,
2009
June 30,
2009
March 31,
2009
Commercial paper
Long-term debt (a)
Deposits/brokered CD's
Alternate funding / other
Non-recourse borrowings of consolidated securitization entities
$
46.0
358.7
38.3
26.8
36.8
$
47.3
384.4
38.9
25.8
3.9
$
50.0
393.7
36.8
23.5
4.4
$
50.1
391.3
36.5
19.7
5.0
$
57.5
378.4
34.0
17.6
5.6
Total debt
$
506.6
$
500.3
$
508.4
$
502.6
$
493.1
Metrics
Bank lines
$51.6
$51.7
$52.3
$55.4
$58.3
Commercial paper coverage (b)
112.0 %
109.0 %
104.6 %
110.6 %
101.4 %
Cash and equivalents
$60.0
$64.4
$56.9
$50.0
$45.2
LT debt < 1 year
$64.6
$70.2
$68.9
$82.4
$79.0
(a) Includes $59 million, $60 billion, $55 billion, $48 billion, and $37 billion of long term debt issued under the TLGP program at March 31, 2010,
December 31, 2009, September 30, 2009, June 30, 2009 and March 31, 2009, respectively.
(b) Commercial paper coverage represents bank lines as a percentage of the commercial paper balance as of the end of the relevant period.
35
GECS - ratios
Debt to equity ratio
(In billions)
March 31,
2010
Debt
Equity (a)
January 1,
2010
December 31,
2009
September 30,
2009
June 30,
2009
March 31,
2009
$506.6
68.5
$538.5
68.9
$500.3
70.8
$508.4
70.7
$502.6
67.9
$493.1
60.8
7.4:1
7.8:1
7.1:1
7.2:1
7.4:1
8.1:1
$506.6
(7.7)
(60.0)
438.9
$538.5
(7.7)
(64.4)
466.4
$500.3
(7.7)
(64.4)
428.3
$508.4
(7.7)
(56.9)
443.7
$502.6
(7.7)
(50.0)
444.8
$493.1
(7.7)
(45.2)
440.1
Equity (a)
Add: hybrid debt
Adjusted equity
68.5
7.7
76.2
68.9
7.7
76.6
70.8
7.7
78.6
70.7
7.7
78.4
67.9
7.7
75.6
60.8
7.7
68.5
Adjusted debt to equity ratio
5.8:1
6.1:1
5.5:1
5.7:1
5.9:1
6.4:1
Debt to equity ratio
Debt
Less: hybrid debt
Less: cash and equivalents
Adjusted debt
Tangible common equity to tangible assets ratio
(In billions)
March 31,
2010
January 1,
2010
December 31,
2009
September 30,
2009
June 30,
2009
March 31,
2009
Total equity (a)
Less: Goodwill and other intangibles
$
68.5
(31.7)
$
68.9
(32.4)
$
70.8
(32.4)
$
70.7
(32.0)
$
67.9
(31.7)
$
60.8
(28.2)
Tangible common equity
$
36.8
$
36.5
$
38.4
$
38.6
$
36.2
$
32.5
Total assets
Less: Goodwill and other intangibles
$
646.1
(31.7)
$
680.8
(32.4)
$
650.2
(32.4)
$
658.3
(32.0)
$
650.6
(31.7)
$
635.4
(28.2)
Tangible assets
$
614.4
$
648.4
$
617.8
$
626.3
$
618.9
$
607.1
Tangible common equity to tangible assets
6.0 %
5.6 %
6.2 %
6.2 %
5.8 %
5.4 %
Tier 1 common ratio (b)
6.8 %
6.6 %
6.6 %
6.5 %
6.4 %
6.3 %
(a) Equity represents amounts available to GECS shareholders, excluding noncontrolling interests.
(b) Estimated based on SCAP requirements.
36
Appendix
37
Glossary
Term
Definition
Borrowing
Financial liability (short or long-term) that obligates us to repay cash or another financial asset to another entity.
Cash equivalents
Highly liquid debt instruments with original maturities of three months or less, such as commercial paper. Typically included with cash for
reporting purposes, unless designated as available-for-sale and included with investment securities.
Cash flow hedges
Qualifying derivative instruments that we use to protect ourselves against exposure to variability in future cash flows. The exposure may
be associated with an existing asset or liability, or with a forecasted transaction. See "Hedge."
Commercial paper
Unsecured, unregistered promise to repay borrowed funds in a specified period ranging from overnight to 270 days.
Derivative instrument
A financial instrument or contract with another party (counterparty) that is designed to meet any of a variety of risk management
objectives, including those related to fluctuations in interest rates, currency exchange rates or commodity prices. Options, forwards and
swaps are the most common derivative instruments we employ. See "Hedge."
Discontinued operations
Certain businesses we have sold or committed to sell within the next year and therefore will no longer be part of our ongoing operations.
The net earnings, assets and liabilities, and cash flows of such businesses are separately classified on our Statement of Earnings and
Statement of Financial Position for all periods presented.
Ending Net Investment (ENI)
The total capital we have invested in the financial services business. It is the sum of short-term borrowings, long-term borrowings and
equity (excluding noncontrolling interests) adjusted for unrealized gains and losses on investment securities and hedging instruments.
Alternatively, it is the amount of assets of continuing operations less the amount of non-interest bearing liabilities.
Equipment leased to others
Rental equipment we own that is available to rent and is stated at cost less accumulated depreciation.
Fair value hedge
Qualifying derivative instruments that we use to reduce the risk of changes in the fair value of assets, liabilities or certain types of firm
commitments. Changes in the fair values of derivative instruments that are designated and effective as fair value hedges are recorded in
earnings, but are offset by corresponding changes in the fair values of the hedged items. See "Hedge."
Financing receivables
Investment in contractual loans and financing leases due from customers (not investment securities).
Goodwill
The premium paid for acquisition of a business. Calculated as the purchase price less the fair value of net assets acquired (net assets are
identified tangible and intangible assets, less liabilities assumed).
Hedge
A technique designed to eliminate risk. Often refers to the use of derivative financial instruments to offset changes in interest rates,
currency exchange rates or commodity prices, although many business positions are "naturally hedged" - for example, funding a U.S.
fixed-rate investment with U.S. fixed-rate borrowings is a natural interest rate hedge.
38
Glossary
Term
Definition
Intangible asset
A non-financial asset lacking physical substance, such as goodwill, patents, licenses, trademarks and customer relationships.
Interest rate swap
Agreement under which two counterparties agree to exchange one type of interest rate cash flow for another. In a typical
arrangement, one party periodically will pay a fixed amount of interest, in exchange for which that party will receive variable
payments computed using a published index. See "Hedge."
Investment securities
Generally, an instrument that provides an ownership position in a corporation (a stock), a creditor relationship with a corporation or
governmental body (a bond), rights to contractual cash flows backed by pools of financial assets or rights to ownership such as those
represented by options, subscription rights and subscription warrants.
Managed receivables
Total receivable amounts on which we continue to perform billing and collection activities, including receivables that have been sold
with and without credit recourse and are no longer reported on our Statement of Financial Position.
Net operating income
Represents operating income less operating expenses for owned real estate properties.
Retained interest
A portion of a transferred financial asset retained by the transferor that provides rights to receive portions of the cash inflows from
that asset.
Securitization
A process whereby loans or other receivables are packaged, underwritten and sold to investors. In a typical transaction, assets are
sold to a special purpose entity, which purchases the assets with cash raised through issuance of beneficial interests (usually debt
instruments) to third-party investors. Whether or not credit risk associated with the securitized assets is retained by the seller depends
on the structure of the securitization. See "Variable interest entity."
Variable interest entity (VIE)
Entity defined by Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 810 (FASB Interpretation 46
(Revised)), and that must be consolidated by its primary beneficiary. A variable interest entity has one or both of the following
characteristics: (1) its equity at risk is not sufficient to permit the entity to finance its activities without additional subordinated
financial support from other parties, or (2) as a group, the equity investors lack one or more of the following characteristics: (a)
direct/indirect ability to make decisions, (b) obligation to absorb expected losses, or (c) right to receive expected residual returns.
39
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