GE Capital Second quarter 2011 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: 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 conditions in the financial and credit markets on the availability and cost of General Electric Capital Corporation's (GECC) funding and on our ability to reduce GECC'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; changes in Japanese consumer behavior that may affect our estimates of liability for grey zone claims; 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 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 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. Prior period amounts have been recasted for discontinued operations. Second quarter 2011 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 3. GE Capital asset quality a) Assets by region 9 b) Assets in selected emerging markets 10 c) Portfolio overview and ratios 11-18 d) Nonearning and nonaccrual financing receivables 19 e) Consumer allowance for losses on financing receivables 20 f) Consumer financing receivables by region 21 g) Consumer mortgage portfolio by country 22 h) Commercial allowance for losses on financing receivables 23 i) Real estate allowance for losses on financing receivables 24 j) Commercial real estate debt and equity overview 25-26 k) Equipment leased to others overview 27 l) Commercial aircraft asset details 28 4. GE Capital other key areas a) Investment securities 30 b) Investments measured at fair value in earnings 31 c) Ending net investment 32 d) GECC ratios 33 5. GECS supplemental information a) Investment securities 35 b) Funding 36 c) Ratios 37 6. Appendix a) Glossary 39-40 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 June 30, 2011 $ 11,584 42 11,626 March 31, 2011 $ 12,169 42 12,211 For three months ending December 31, 2010 $ 11,702 44 11,746 September 30, 2010 $ 11,061 40 11,101 June 30, 2010 $ 11,614 168 11,782 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 20, 23-24) Depreciation and amortization Total costs and expenses 3,583 3,319 38 30 811 1,792 9,573 3,581 3,352 40 24 1,157 1,775 9,929 3,602 3,815 43 35 1,352 1,971 10,818 3,565 3,338 39 36 1,637 2,016 10,631 3,638 3,471 154 38 2,007 1,848 11,156 Earnings from continuing operations before income taxes Benefit (provision) for income taxes 2,053 (378) 2,282 (446) 928 124 470 366 626 95 Earnings from continuing operations (a) Earnings (loss) from discontinued operations, net of taxes 1,675 218 1,836 57 1,052 634 836 (1,051) 721 (100) Net earnings (loss) Less: Net earnings (loss) attributable to noncontrolling interests 1,893 20 1,893 31 1,686 25 (215) 18 621 (22) Net earnings (loss) attributable to GECC $ 1,873 $ 1,862 GECC - statement of changes in shareowner's equity June 30, 2011 (In millions) Changes in GECC shareowner's equity Balance at beginning of period Dividends and other transactions with shareowner Other comprehensive income (loss) - net Investment securities Currency translation adjustments Cash flow hedges Benefit plans $ $ 38 985 (195) 828 1,873 2,701 Increase / (decrease) from net earnings attributable to the Company Comprehensive income Balance at end of period 76,143 - March 31, 2011 $ 78,844 72,881 - $ 76,143 $ For three months ending December 31, 2010 $ (77) 1,542 (64) (1) 1,400 1,862 3,262 $ 1,661 70,493 79 72,881 $ September 30, 2010 $ 202 172 271 3 648 1,661 2,309 $ (233) 69,823 (5) June 30, 2010 $ 163 1,037 (278) (14) 908 (233) 675 $ 70,493 643 71,650 21 41 (2,618) 63 23 (2,491) 643 (1,848) $ 69,823 (a) Effective January 1, 2010, GE Capital segment earnings are equal to the earnings from continuing operations for GECC. 3 GECC - Condensed statement of financial position (In millions) Assets Cash and equivalents Investment securities (see page 30) Inventories Financing receivables - net (see pages 11 - 18) Other receivables Property, plant & equipment, less accumulated amortization of $24,961, $25,125, $25,390, $25,879, and $25,424 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 June 30, 2011 $ March 31, 2011 77,258 18,372 52 300,749 13,657 $ December 31, 2010 66,497 18,666 63 303,365 13,313 $ 54,286 27,759 1,874 72,306 1,587 10,106 55,307 28,173 1,843 74,410 895 6,407 59,538 17,952 66 312,234 13,674 September 30, 2010 $ 53,747 27,508 1,874 79,045 3,127 12,375 63,612 17,962 62 314,573 12,610 June 30, 2010 $ 53,415 27,246 2,093 82,077 786 21,725 59,402 15,208 71 316,099 12,429 53,417 26,564 2,177 81,189 599 22,076 $ 577,123 $ 569,822 $ 581,140 $ 596,161 $ 589,231 $ 118,599 7,739 29,075 41,548 268,830 5,054 22,283 1,717 527 1,706 $ 105,393 8,271 29,300 39,397 278,732 5,554 19,246 4,057 550 2,001 $ 113,646 6,839 30,018 37,298 284,346 5,779 20,287 6,109 592 2,181 $ 110,488 8,081 30,434 36,375 297,369 6,663 20,481 4,900 446 9,305 $ 115,729 7,897 33,347 31,938 288,854 7,430 19,260 5,168 261 8,426 Total liabilities 497,078 492,501 507,095 524,542 518,310 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 (376) 986 (1,606) (381) 28,463 51,702 (414) 1 (1,411) (381) 28,463 49,829 (337) (1,541) (1,347) (380) 28,463 47,967 (539) (1,713) (1,618) (383) 28,421 46,269 (702) (2,750) (1,340) (369) 28,421 46,507 Total GECC shareowner's equity 78,844 76,143 72,881 70,493 69,823 1,201 1,178 1,164 1,126 1,098 80,045 77,321 74,045 71,619 70,921 Noncontrolling interests Total equity Total liabilities and equity $ 577,123 $ 569,822 $ 581,140 $ 596,161 $ 589,231 4 GECS - Condensed statement of earnings (In millions) Revenues Revenues from services Sales of goods Total revenues June 30, 2011 $ 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 20, 23-24) Depreciation and amortization Total costs and expenses 12,401 42 12,443 March 31, 2011 $ 12,999 42 13,041 For three months ending December 31, 2010 $ 12,618 44 12,662 September 30, 2010 $ 11,914 40 11,954 June 30, 2010 $ 12,464 168 12,632 3,601 3,454 38 790 811 1,792 10,486 3,589 3,483 40 769 1,157 1,776 10,814 3,610 3,946 43 844 1,352 1,971 11,766 3,573 3,479 39 796 1,637 2,018 11,542 3,645 3,616 154 770 2,007 1,848 12,040 Earnings from continuing operations before income taxes Benefit (provision) for income taxes 1,957 (344) 2,227 (428) 896 136 412 386 592 120 Earnings from continuing operations Earnings (loss) from discontinued operations, net of taxes 1,613 217 1,799 57 1,032 634 798 (1,052) 712 (100) Net earnings (loss) Less: Net earnings (loss) attributable to noncontrolling interests 1,830 20 1,856 31 1,666 25 (254) 18 612 (22) Net earnings (loss) attributable to GECS $ 1,810 $ 1,825 GECS - statement of changes in shareowner's equity June 30, 2011 (In millions) Changes in GECS shareowner's equity Balance at beginning of period Dividends and other transactions with shareowner Other comprehensive income (loss) - net Investment securities Currency translation adjustments Cash flow hedges Benefit plans $ $ 391 993 (190) 1,194 1,810 3,004 Increase / (decrease) from net earnings attributable to the Company Comprehensive income Balance at end of period 72,104 - March 31, 2011 $ 75,108 68,984 1 $ 72,104 $ For three months ending December 31, 2010 $ (188) 1,553 (70) (1) 1,294 1,825 3,119 $ 1,641 66,854 80 68,984 $ September 30, 2010 $ (22) 180 248 3 409 1,641 2,050 $ (272) 67,267 (5) June 30, 2010 $ (906) 1,045 (261) (14) (136) (272) (408) $ 66,854 634 68,517 22 632 (2,649) 88 23 (1,906) 634 (1,272) $ 67,267 5 GECS - Condensed statement of financial position (In millions) Assets Cash and equivalents Investment securities (see page 35) Inventories Financing receivables - net (see pages 11 - 18) Other receivables Property, plant & equipment, less accumulated amortization of $24,977, $25,140, $25,404, $25,895, and $25,439 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 36) Accounts payable Non-recourse borrowings of consolidated securitization entities (see page 36) Bank deposits (see page 36) Long-term borrowings (see page 36) Investment contracts, insurance liabilities and insurance annuity benefits Other liabilities Deferred income taxes Liabilities of businesses held for sale Liabilities of discontinued operations June 30, 2011 $ March 31, 2011 77,983 45,331 52 300,749 14,263 $ December 31, 2010 67,253 44,872 63 303,365 14,009 $ 54,306 27,759 1,882 72,471 1,587 10,106 55,326 28,173 1,851 74,598 895 6,413 60,257 43,921 66 312,234 14,304 September 30, 2010 $ 53,768 27,508 1,883 79,240 3,127 12,375 64,269 45,130 62 314,573 13,146 June 30, 2010 $ 53,435 27,246 2,102 82,312 786 21,725 59,762 41,491 71 316,099 12,962 53,438 26,564 2,624 82,302 599 22,076 $ 605,634 $ 597,673 $ 608,683 $ 624,786 $ 617,988 $ 123,643 7,870 29,075 41,548 268,962 29,854 23,127 2,759 527 1,960 $ 110,603 8,372 29,300 39,397 278,792 30,363 19,903 4,864 550 2,247 $ 118,797 7,035 30,018 37,298 284,407 29,993 20,982 6,990 592 2,423 $ 115,521 8,189 30,434 36,375 297,437 31,688 21,414 5,752 446 9,550 $ 120,725 8,039 33,347 31,938 288,922 31,015 20,168 6,540 261 8,668 Total liabilities 529,325 524,391 538,535 556,806 549,623 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 (436) 1,135 (1,541) (381) 27,617 48,703 (827) 142 (1,351) (381) 27,617 46,893 (639) (1,411) (1,281) (380) 27,616 45,068 (617) (1,591) (1,529) (383) 27,573 43,390 289 (2,636) (1,268) (369) 27,573 43,667 Total GECS shareowner's equity 75,108 72,104 68,984 66,854 67,267 1,201 1,178 1,164 1,126 1,098 76,309 73,282 70,148 67,980 68,365 Noncontrolling interests Total equity Total liabilities and equity $ 605,634 $ 597,673 $ 608,683 $ 624,786 $ 617,988 6 GECC continuing operations (GE Capital) June 30, 2011 (In millions) Revenues Less: Interest expense Net revenues $ March 31, 2011 11,626 (3,583) 8,043 $ 12,211 (3,581) 8,630 For three months ending December 31, 2010 $ 11,746 (3,602) 8,144 September 30, 2010 $ 11,101 (3,565) 7,536 June 30, 2010 $ 11,782 (3,638) 8,144 Costs and expenses Selling, general and administrative Depreciation and amortization Operating and other expenses Total costs and expenses 2,771 1,792 616 5,179 2,687 1,775 729 5,191 2,909 1,971 984 5,864 2,572 2,016 841 5,429 2,645 1,848 1,018 5,511 Earnings before income taxes and provision for losses Less: Provision for losses on financing receivables 2,864 (811) 3,439 (1,157) 2,280 (1,352) 2,107 (1,637) 2,633 (2,007) Earnings before income taxes Benefit (provision) for income taxes 2,053 (378) 2,282 (446) 928 124 470 366 626 95 Earnings from continuing operations before noncontrolling interests Less: Net earnings (loss) attributable to noncontrolling interests $ 1,675 20 $ 1,836 31 $ 1,052 25 $ 836 18 $ 721 (22) GE Capital segment profit $ 1,655 $ 1,805 $ 1,027 $ 818 $ 743 June 30, 2011 (In millions) Segment profit CLL Consumer Real Estate EFS GECAS $ $ GECC corporate items and eliminations GE Capital segment profit $ March 31, 2011 701 1,020 (335) 139 321 1,846 (191) $ 1,655 $ $ For three months ending December 31, 2010 554 1,219 (358) 112 306 1,833 (28) $ 1,805 $ $ September 30, 2010 567 546 (409) 33 432 1,169 (142) $ 1,027 $ $ June 30, 2010 443 773 (405) 55 158 1,024 (206) $ 818 $ 312 649 (524) 126 288 851 (108) $ 743 7 GE Capital asset quality 8 GE Capital - Assets by region (a) (In millions) June 30, 2011 Property, plant and equipment (net) Financing receivables (net) 140,941 $ U.S. Europe Western (including U.K.) Eastern Pacific Basin Americas (excluding U.S.) Other $ Total $ 300,749 $ 55,307 $ 570,716 Total at March 31, 2011 $ 303,365 $ 54,286 $ 559,716 Total at December 31, 2010 $ 312,234 $ 53,747 $ 568,765 Total at September 30, 2010 $ 314,573 $ 53,415 $ 574,436 Total at June 30, 2010 $ 316,099 $ 53,417 $ 567,155 80,921 20,005 25,071 20,777 13,034 10,683 Total assets $ 5,312 274 2,650 1,331 35,057 297,988 $ 109,909 29,561 48,023 32,114 53,121 At March 31, 2011 December 31, 2010 September 30, 2010 June 30, 2010 Total assets Total assets Total assets Total assets 290,485 $ 108,912 28,067 46,516 32,725 53,011 $ 559,716 296,366 $ 108,728 30,215 47,174 32,738 53,544 $ 568,765 299,546 $ 110,563 31,000 47,049 32,848 53,430 $ 574,436 301,830 106,001 27,515 45,151 33,224 53,434 $ 567,155 (a) Excludes assets of discontinued operations. 9 GE Capital - Assets in selected emerging markets (In millions) Selected emerging markets (a) Eastern Europe Poland Czech Republic Hungary Turkey Total Eastern Europe Financing receivables (net) $ 9,588 5,876 3,507 18,971 June 30, 2011 Property, plant and equipment (net) $ 140 59 47 246 Total assets $ 13,689 7,844 4,817 972 27,322 $ At March 31, 2011 December 31, 2010 September 30, 2010 June 30, 2010 Total assets Total assets Total assets Total assets 13,202 7,553 4,576 440 25,771 $ 13,236 6,657 4,427 3,074 27,394 $ 13,058 7,304 4,115 3,077 27,554 $ 11,995 6,607 4,026 2,794 25,422 Pacific Basin and Other India Thailand Total Pacific Basin and Other 1,273 58 1,331 15 15 1,808 1,618 3,426 1,789 1,636 3,425 1,777 1,621 3,398 1,771 1,554 3,325 1,758 1,456 3,214 Americas Mexico Total Americas 5,382 5,382 809 809 8,344 8,344 8,406 8,406 8,411 8,411 8,047 8,047 7,982 7,982 Total $ 25,684 $ 1,070 $ 39,092 Total at March 31, 2011 $ 24,934 $ 1,061 $ 37,602 Total at December 31, 2010 $ 24,524 $ 1,077 $ 39,203 Total at September 30, 2010 $ 24,513 $ 1,011 $ 38,926 Total at June 30, 2010 $ 23,351 $ 879 $ 36,618 $ 37,602 $ 39,203 $ 38,926 $ 36,618 (a) We have disclosed here selected emerging markets where our total assets at December 31, 2010, exceed $1 billion. Assets of discontinued operations are excluded. 10 GE Capital - CLL portfolio overview (In millions, unless otherwise noted) Balances June 30, 2011 CLL Americas Europe Asia Other Total $ $ 79,614 37,897 11,759 2,489 131,759 $ $ June 30, 2011 CLL Americas Europe Asia Other Total $ $ $ $ $ June 30, 2011 CLL Americas Europe Asia Other Total $ $ 1,254 443 228 6 1,931 $ March 31, 2011 139 64 71 274 $ $ $ 86,596 37,498 11,943 2,626 138,663 $ $ $ $ 2,571 1,241 406 8 4,226 $ $ 1,287 429 222 7 1,945 June 30, 2010 89,769 36,969 12,192 2,651 141,581 $ $ September 30, 2010 $ $ Allowance for losses (c) December 31, 2010 March 31, 2011 1,123 433 180 7 1,743 $ September 30, 2010 Nonearning receivables (b) December 31, 2010 2,395 1,209 346 8 3,958 $ June 30, 2011 CLL Americas Europe Asia Other Total 82,876 37,093 11,545 2,568 134,082 March 31, 2011 2,060 1,156 266 6 3,488 $ Financing receivables (a) December 31, 2010 March 31, 2011 June 30, 2010 2,777 1,095 429 7 4,308 $ $ September 30, 2010 $ $ $ $ 314 71 56 1 442 $ $ 3,076 902 422 24 4,424 June 30, 2010 1,356 411 252 8 2,027 $ $ Write-offs (net) - for three months ending December 31, September 30, 2010 2010 172 35 58 265 93,042 36,067 11,914 2,727 143,750 1,362 382 234 8 1,986 June 30, 2010 189 47 18 254 $ $ 256 128 39 423 (a) Financing receivables include impaired loans of $5,638 million at June 30, 2011. (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 on 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) 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. 11 GE Capital - CLL portfolio overview Ratios Nonearning receivables as a percent of financing receivables (a) March 31, December 31, September 30, 2011 2010 2010 June 30, 2011 CLL Americas Europe Asia Other Total 2.6 % 3.1 2.3 0.2 2.6 54.5 % 37.5 67.7 116.7 50.0 50.1 % 34.6 54.7 87.5 46.0 1.5 % 1.2 2.0 0.2 1.4 0.7 % 0.7 2.4 0.8 48.8 % 37.5 58.7 114.3 47.1 1.5 % 1.1 1.9 0.3 1.4 June 30, 2011 0.8 % 0.4 2.0 NM 0.8 1.94 % 2.03 % June 30, 2010 1.5 % 1.1 2.0 0.3 1.4 June 30, 2010 0.8 % 0.5 0.6 NM 0.7 September 30, 2010 2.14 % 44.3 % 42.4 55.5 33.3 44.9 1.5 % 1.1 2.1 0.3 1.4 1.4 % 0.8 1.9 0.2 1.3 CLL December 31, 2010 March 31, 2011 3.3 % 2.5 3.5 0.9 3.1 June 30, 2010 Write-offs as a percent of financing receivables (c) March 31, December 31, September 30, 2011 2010 2010 June 30, 2011 Delinquency 52.4 % 36.6 65.9 75.0 48.8 1.4 % 1.1 1.5 0.3 1.3 CLL Americas Europe Asia Other Total 3.1 % 3.0 3.5 0.3 3.0 Allowance for losses as a percent of total financing receivables (b) March 31, December 31, September 30, 2011 2010 2010 June 30, 2011 CLL Americas Europe Asia Other Total 3.0 % 3.3 3.4 0.3 3.0 Allowance for losses as a percent of nonearning receivables (b) March 31, December 31, September 30, 2011 2010 2010 June 30, 2011 CLL Americas Europe Asia Other Total 2.9 % 3.3 3.0 0.3 3.0 June 30, 2010 1.1 % 1.3 1.3 NM 1.1 June 30, 2010 2.40 % 2.58 % (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 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 on 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) 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. (c) 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. 12 GE Capital - Portfolio overview (In millions, unless otherwise noted) Financing receivables (a) December 31, 2010 Balances June 30, 2011 EFS GECAS Other $ March 31, 2011 6,143 11,952 1,517 $ June 30, 2011 EFS GECAS Other $ 136 64 87 $ $ $ $ 7,011 12,615 1,788 $ $ 62 102 $ Allowance for losses (c) December 31, 2010 36 12 55 $ 22 20 58 7,291 12,227 2,087 June 30, 2010 $ September 30, 2010 163 90 $ September 30, 2010 $ 85 25 53 (7) 3 8 $ 4 8 $ 71 6 $ 7 - 7,472 12,337 2,272 June 30, 2010 77 77 105 June 30, 2010 $ Write-offs (net) - for three months ending March 31, December 31, September 30, 2011 2010 2010 June 30, 2011 EFS GECAS Other 162 16 99 March 31, 2011 35 15 54 $ Nonearning receivables (b) December 31, 2010 March 31, 2011 June 30, 2011 EFS GECAS Other 6,662 12,104 1,640 September 30, 2010 53 50 50 June 30, 2010 $ 18 - (a) Financing receivables include $140 million, $94 million, and $181 million of impaired loans at EFS, GECAS, and Other, respectively, at June 30, 2011. (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 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 on 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) 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. 13 GE Capital - Portfolio overview Ratios Nonearning receivables as a percent of financing receivables (a) March 31, December 31, September 30, 2011 2010 2010 June 30, 2011 EFS GECAS Other 2.2 % 0.5 5.7 25.7 % 23.4 62.1 0.6 % 0.1 3.6 22.2 % 75.0 55.6 35.5 % 56.9 0.5 % 0.1 3.4 0.3 % 0.2 3.2 (0.4) % 0.1 2.0 0.2 % 1.9 4.0 % NM 1.2 1.0 % 0.6 4.6 June 30, 2010 52.1 % 58.9 68.8 % 64.9 47.6 June 30, 2010 1.2 % 0.2 2.5 Write-offs (net) as a percent of financing receivables (c) March 31, December 31, September 30, 2011 2010 2010 June 30, 2011 EFS GECAS Other 2.2 % 4.3 Allowance for losses as a percent of total financing receivables (b) March 31, December 31, September 30, 2011 2010 2010 June 30, 2011 EFS GECAS Other 0.9 % 5.7 Allowance for losses as a percent of nonearning receivables (b) March 31, December 31, September 30, 2011 2010 2010 June 30, 2011 EFS GECAS Other 2.4 % 0.1 6.0 June 30, 2010 0.7 % 0.4 2.2 June 30, 2010 NM % 0.2 NM NM % 0.6 NM (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) 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. (c) 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 June 30, 2011 Real Estate Debt (b) Business Properties Total $ 27,750 9,057 36,807 $ $ $ $ Real Estate Debt Business Properties Total $ $ $ $ $ $ $ $ 961 386 1,347 $ $ 1,292 196 1,488 June 30, 2010 32,167 10,314 42,481 $ $ September 30, 2010 $ $ 1,037 388 1,425 $ $ September 30, 2010 $ $ 91 27 118 $ $ 240 40 280 $ $ 332 33 365 $ $ 33,388 10,618 44,006 June 30, 2010 1,211 407 1,618 June 30, 2010 1,649 208 1,857 $ $ Write-offs (net) - for three months ending March 31, December 31, September 30, 2011 2010 2010 June 30, 2011 Real Estate Debt Business Properties Total 1,118 181 1,299 $ 30,249 9,962 40,211 Allowance for losses (d) December 31, 2010 March 31, 2011 1,092 184 1,276 $ $ 769 368 1,137 $ June 30, 2011 $ September 30, 2010 Nonearning receivables (c) December 31, 2010 March 31, 2011 680 323 1,003 $ 29,474 9,548 39,022 $ June 30, 2011 Real Estate Debt Business Properties Total Financing receivables (a) December 31, 2010 March 31, 2011 1,590 207 1,797 June 30, 2010 195 27 222 $ $ 157 28 185 (a) Financing receivables include $10,019 million of impaired loans at Real Estate at June 30, 2011. (b) Financing receivables include $122 million of construction loans at June 30, 2011. (c) 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 on 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. (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. 15 GE Capital - Portfolio overview Ratios Nonearning receivables as a percent of financing receivables (a) March 31, December 31, September 30, 2011 2010 2010 June 30, 2011 Real Estate Debt Business Properties Total 2.5 % 3.6 2.7 160.6 % 57.0 127.2 134.4 % 50.8 110.5 3.8 % 1.9 3.3 1.3 % 1.2 1.2 159.0 % 53.6 130.0 4.3 % 2.0 3.7 June 30, 2011 3.2 % 1.6 2.8 4.12 % 4.08 % 4.41 % 131.0 % 50.9 111.1 June 30, 2010 5.1 % 2.0 4.4 4.8 % 1.9 4.1 June 30, 2010 2.4 % 1.0 2.1 4.3 % 1.3 3.5 Real Estate December 31, 2010 March 31, 2011 3.6 % 3.8 3.7 June 30, 2010 Write-offs as a percent of financing receivables (c) March 31, December 31, September 30, 2011 2010 2010 June 30, 2011 Delinquency 145.4 % 49.2 114.2 3.9 % 2.0 3.5 Real Estate Debt Business Properties Total 3.2 % 3.8 3.4 Allowance for losses as a percent of total financing receivables (b) March 31, December 31, September 30, 2011 2010 2010 June 30, 2011 Real Estate Debt Business Properties Total 3.2 % 3.9 3.3 Allowance for losses as a percent of nonearning receivables (b) March 31, December 31, September 30, 2011 2010 2010 June 30, 2011 Real Estate Debt Business Properties Total 2.6 % 3.9 2.9 June 30, 2010 September 30, 2010 1.8 % 1.0 1.6 June 30, 2010 5.74 % 5.40 % (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 on 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) 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. (c) 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 - Consumer portfolio overview (In millions, unless otherwise noted) Balances June 30, 2011 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 $ $ 40,731 21,047 42,178 7,141 8,528 119,625 $ $ June 30, 2011 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 $ $ $ $ $ $ $ $ $ $ $ $ 3,738 289 1,201 46 478 5,752 813 930 2,141 152 239 4,275 $ $ 803 937 2,333 168 259 4,500 40,127 20,966 40,052 8,155 8,488 117,788 June 30, 2010 $ $ September 30, 2010 $ $ 3,966 317 1,144 41 481 5,949 $ $ September 30, 2010 $ $ 867 974 2,551 198 244 4,834 64 196 652 27 43 982 $ $ 55 182 777 36 61 1,111 $ $ 112 251 891 13 70 1,337 $ $ 62 243 853 42 59 1,259 38,588 20,046 40,077 8,124 8,248 115,083 June 30, 2010 3,932 371 1,223 49 460 6,035 June 30, 2010 $ $ Write-offs (net) - for three months ending March 31, December 31, September 30, 2011 2010 2010 June 30, 2011 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 $ 40,011 20,132 43,974 7,558 8,304 119,979 Allowance for losses (c) December 31, 2010 March 31, 2011 790 934 1,846 143 218 3,931 $ September 30, 2010 Nonearning receivables (b) December 31, 2010 3,843 295 1,004 41 461 5,644 $ June 30, 2011 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 40,421 20,235 41,282 7,295 8,231 117,464 March 31, 2011 3,804 308 790 39 490 5,431 $ Financing receivables (a) December 31, 2010 March 31, 2011 828 954 2,635 223 246 4,886 June 30, 2010 $ $ 57 298 1,014 54 85 1,508 (a) Financing receivables include impaired loans of $2,770 million at June 30, 2011. (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 on 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) 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. 17 GE Capital - Consumer portfolio overview Ratios Nonearning receivables as a percent of financing receivables (a) March 31, December 31, September 30, 2011 2010 2010 June 30, 2011 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 9.3 % 1.5 1.9 0.5 5.7 4.5 20.8 % 303.2 233.7 366.7 44.5 72.4 21.5 % 324.2 194.3 365.2 54.2 78.2 2.0 % 4.6 5.2 2.1 2.9 3.6 0.6 % 3.8 6.2 1.5 2.1 3.3 21.9 % 307.3 223.0 482.9 50.7 81.3 2.0 % 4.7 5.3 2.2 3.1 3.8 June 30, 2011 0.5 % 3.6 7.3 1.9 3.0 3.7 7.59 % 7.89 % June 30, 2010 2.1 % 4.8 6.6 2.7 3.0 4.2 June 30, 2010 0.6 % 4.7 8.5 2.1 2.8 4.3 September 30, 2010 8.09 % 21.1 % 257.1 215.5 455.1 53.5 81.0 2.2 % 4.6 6.4 2.4 2.9 4.1 1.1 % 4.9 8.5 0.7 3.3 4.5 Consumer December 31, 2010 March 31, 2011 10.2 % 1.9 3.1 0.6 5.6 5.2 June 30, 2010 Write-offs as a percent of financing receivables (c) March 31, December 31, September 30, 2011 2010 2010 June 30, 2011 Delinquency 21.2 % 315.3 213.2 370.7 51.8 75.7 1.9 % 4.4 4.4 2.0 2.6 3.3 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 9.9 % 1.5 2.9 0.5 5.7 5.1 Allowance for losses as a percent of total financing receivables (b) March 31, December 31, September 30, 2011 2010 2010 June 30, 2011 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 9.3 % 1.4 2.7 0.6 5.8 4.8 Allowance for losses as a percent of nonearning receivables (b) March 31, December 31, September 30, 2011 2010 2010 June 30, 2011 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 9.5 % 1.5 2.4 0.6 5.6 4.8 June 30, 2010 0.6 % 5.6 10.1 2.4 3.8 5.0 % June 30, 2010 8.58 % 8.95 % (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 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 on 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) 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. (c) 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. 18 GE Capital - Nonearning and nonaccrual financing receivables ($ millions) June 30, 2011 Commercial CLL EFS GECAS Other Total Commercial Nonearning financing receivables (a) Nonaccrual financing receivables (b) $ $ 3,488 136 64 87 3,775 5,013 140 64 161 5,378 Real Estate 1,003 9,885 Consumer 5,431 5,666 Total $ 10,209 $ 20,929 (a) Nonearning financing receivables are those that are 90 days or more past due (or for which collection has otherwise become doubtful). Nonearning financing 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 financing receivables exclude loans which are paying on 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) "Nonaccrual financing receivables" are those on which we have stopped accruing interest. We stop accruing interest at the earlier of the time at which collection of an account becomes doubtful or the account becomes 90 days past due. Total nonaccrual financing receivables of $20.9 billion includes $10.2 billion classified as nonearning financing receivables. Substantially all of this difference relates to loans which are classified as nonaccrual financing receivables but are paying on a cash basis, and therefore are excluded from nonearning financing receivables. 19 GE Capital - Consumer allowance for losses on financing receivables (In millions) 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 Consumer (In millions) 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 Consumer Provision charged to operations Balance January 1, 2011 Balance December 31, 2009 Other (b) Gross writeoffs Balance June 30, 2011 Recoveries $ 803 937 2,333 168 259 $ 66 311 941 26 59 $ 40 64 1 12 4 $ (150) (664) (1,688) (126) (152) $ 31 286 259 63 48 $ 790 934 1,846 143 218 $ 4,500 $ 1,403 $ 121 $ (2,780) $ 687 $ 3,931 Provision charged to operations Balance January 1, 2010 Adoption of ASU 2009-16 & 17 (a) Other (b) Gross writeoffs Balance June 30, 2010 Recoveries $ 892 1,106 1,551 292 292 $ 1,602 - $ 892 1,106 3,153 292 292 $ 170 615 1,570 73 163 $ (103) (113) (1) (43) (35) $ (180) (935) (2,320) (191) (217) $ 49 281 233 92 43 $ 828 954 2,635 223 246 $ 4,133 $ 1,602 $ 5,735 $ 2,591 $ (295) $ (3,843) $ 698 $ 4,886 (a) On January 1, 2010, we adopted ASU 2009-16 & 17, amendments to ASC 810, Consolidation, that required us to consolidate the allowance for losses of VIEs consolidated on January 1, 2010. (b) Other primarily included the effects of currency exchange. 20 GE Capital - Consumer financing receivables by region (In millions) June 30, 2011 Installment and revolving credit Mortgages U.S. Europe Western Eastern Pacific Basin Americas Other $ Total at June 30, 2011 $ - $ 31,240 8,783 245 51 412 December 31, 2010 40,731 $ Total at December 31, 2010 $ - $ June 30, 2010 $ $ Total at June 30, 2010 $ - $ $ 43,974 64,106 $ 40,077 7,141 $ 60,123 $ $ 7,558 $ - $ $ 877 $ 8,304 44,851 46,186 19,249 8,886 326 481 $ 119,979 March 31, 2011 Installment and revolving credit Mortgages U.S. Europe Western Eastern Pacific Basin Americas Other $ Total at March 31, 2011 $ - $ 31,313 8,373 234 74 427 September 30, 2010 40,421 $ Total at September 30, 2010 $ - $ 61,517 $ 40,052 $ 61,018 $ 7,295 $ - $ $ 8,231 8,155 $ 117,464 Total 939 $ 2,971 4,283 295 $ 42,131 46,359 19,697 8,550 280 447 Other (a) 5,112 1,389 1,647 7 $ Total 849 2,736 4,432 214 - Auto $ 7,433 5,565 6,421 1,493 54 $ Other (a) 4,645 1,328 1,320 2 Installment and revolving credit 31,317 7,957 246 139 468 40,127 Auto $ 7,665 5,564 6,782 206 18 Mortgages U.S. Europe Western Eastern Pacific Basin Americas Other 41,282 8,488 40,991 46,833 19,194 8,609 1,632 529 $ 117,788 Total 987 $ 3,017 3,932 312 $ 119,625 Total Other (a) 8,124 43,067 46,324 20,461 9,103 247 423 2,853 4,321 253 - 5,075 1,315 1,726 8 $ 8,528 $ Auto $ 889 Other (a) - $ Total 2,755 4,677 207 - 4,700 1,341 1,516 1 7,060 5,255 6,016 1,641 74 $ $ Auto Installment and revolving credit 30,426 7,247 239 176 500 38,588 - 7,533 5,479 6,868 221 31 Mortgages U.S. Europe Western Eastern Pacific Basin Americas Other 63,225 Other (a) 4,547 1,326 1,267 1 Installment and revolving credit 31,100 8,108 249 105 449 40,011 $ 7,782 5,675 7,384 196 10 Mortgages U.S. Europe Western Eastern Pacific Basin Americas Other 42,178 Auto 8,248 41,064 45,578 17,749 8,293 1,817 582 $ 115,083 (a) Represents mainly small and medium enterprise loans. 21 GE Capital - Consumer mortgage portfolio by country (a) (In millions) Financing receivables June 30, 2011 As a % of total Nonearning receivables Delinquent more than 30 days Financing receivables March 31, 2011 As a % of total Nonearning receivables Delinquent more than 30 days U.K. (b) (d) France (d) Poland Czech Republic Hungary Spain All other $ 18,452 9,581 6,189 1,295 1,160 1,059 2,995 45.3 % 23.5 15.2 3.2 2.8 2.6 7.4 13.2 % 3.2 1.1 2.0 10.8 16.8 21.7 21.3 % 3.6 2.2 2.7 15.0 25.6 21.6 U.K. France Poland Czech Republic Hungary Spain All other $ 18,574 9,497 5,854 1,257 1,091 1,061 3,087 46.0 % 23.5 14.5 3.1 2.7 2.6 7.6 13.7 % 3.1 1.0 1.9 10.0 17.3 20.3 20.3 % 3.6 2.1 2.7 14.8 28.1 19.7 Total at June 30, 2011 (c) $ 40,731 100.0 % 9.3 % 13.6 % Total at March 31, 2011 $ 40,421 100.0 % 9.5 % 13.2 % Financing receivables December 31, 2010 As a % of total Nonearning receivables Delinquent more than 30 days Financing receivables September 30, 2010 As a % of total Nonearning receivables Delinquent more than 30 days U.K. France Poland Czech Republic Hungary Spain All other $ 18,487 9,379 5,694 1,186 1,054 1,047 3,164 46.2 % 23.4 14.2 3.0 2.6 2.6 8.0 13.7 % 2.9 0.9 1.6 9.2 15.0 19.1 21.7 % 3.6 2.0 2.5 14.4 25.5 18.3 U.K. France Poland Czech Republic Hungary Spain All other $ 18,858 9,302 5,545 1,210 1,020 1,074 3,118 47.0 % 23.2 13.8 3.0 2.5 2.7 7.8 15.0 % 2.4 0.9 1.4 8.4 18.1 18.7 23.4 % 3.5 2.0 2.2 13.6 27.4 17.6 Total at December 31, 2010 $ 40,011 100.0 % 9.3 % 13.7 % Total at September 30, 2010 $ 40,127 100 % 9.9 % 14.6 % Financing receivables June 30, 2010 As a % of total Nonearning receivables Delinquent more than 30 days U.K. France Poland Czech Republic Hungary Spain All other $ 18,327 9,015 5,007 1,124 929 1,053 3,133 47.5 % 23.4 13.0 2.9 2.4 2.7 8.1 15.9 % 2.1 0.9 1.2 7.0 19.3 16.4 24.9 % 3.4 1.9 1.9 12.0 29.4 15.8 Total at June 30, 2010 $ 38,588 100.0 % 10.2 % 15.3 % (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 June 30, 2011, we had in repossession stock approximately 600 houses in the U.K., which had a value of approximately $0.1 billion. (c) At June 30, 2011, net of credit insurance, approximately 27% 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 (greater than 90%); whose terms permitted interest-only payments; or whose terms resulted in negative amortization. At origination, we underwrite loans with an adjustable rate to the reset value. 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 13% and have a loan-to-value ratio at origination of 75%. At June 30, 2011, 5% (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 86% and 57%, respectively. 22 GE Capital - Commercial allowance for losses on financing receivables Provision charged to operations Balance January 1, 2011 (In millions) CLL Americas Europe Asia Other $ 1,287 429 222 7 $ Gross write-offs Other (a) 219 73 77 - $ (72) 30 10 - $ Balance June 30, 2011 Recoveries (366) (133) (147) - $ 55 34 18 - $ 1,123 433 180 7 EFS 22 11 (1) (4) 7 35 GECAS 20 (2) - (3) - 15 Other 58 11 1 (17) 1 54 Total Commercial (In millions) CLL Americas Europe Asia Other $ Balance December 31, 2009 $ EFS 1,179 575 244 11 $ 66 (10) - $ 389 $ Provision charged to operations Balance January 1, 2010 Adoption of ASU 2009-16 & 17 (b) $ 2,045 1,245 575 234 11 $ (32) $ Gross write-offs Other (a) 630 137 108 (1) $ (670) (10) (70) (23) (2) $ $ 115 $ Balance June 30, 2010 Recoveries (558) (288) (94) - $ 1,847 55 28 9 - $ 1,362 382 234 8 28 - 28 24 1 - - 53 GECAS 104 - 104 35 - (89) - 50 Other 34 - 34 18 - (3) 1 50 Total Commercial $ 2,175 $ 56 $ 2,231 $ 951 $ (104) $ (1,032) $ 93 $ 2,139 (a) Other primarily included transfers to held for sale and the effects of currency exchange. (b) On January 1, 2010, we adopted ASU 2009-16 & 17, amendments to ASC 810, Consolidation, that required us to consolidate the allowance for losses of VIEs consolidated on January 1, 2010. 23 GE Capital - Real Estate allowance for losses on financing receivables Provision charged to operations Balance January 1, 2011 (In millions) Gross write-offs Other (a) Balance June 30, 2011 Recoveries Real Estate Debt Business Properties $ 1,292 196 $ 122 54 $ 9 1 $ (341) (70) $ 10 3 $ 1,092 184 Total Real Estate $ 1,488 $ 176 $ 10 $ (411) $ 13 $ 1,276 Provision charged to operations Balance January 1, 2010 Balance June 30, 2010 Balance December 31, 2009 Adoption of ASU 200916 & 17 (b) Real Estate Debt Business Properties $ 1,358 136 $ (3) 45 $ 1,355 181 $ 548 97 $ (4) (7) $ (310) (64) $ 1 - $ 1,590 207 Total Real Estate $ 1,494 $ 42 $ 1,536 $ 645 $ (11) $ (374) $ 1 $ 1,797 (In millions) Gross write-offs Other (a) Recoveries (a) Other primarily included the effects of currency exchange. (b) On January 1, 2010, we adopted ASU 2009-16 & 17, amendments to ASC 810, Consolidation, that required us to consolidate the allowance for losses of VIEs consolidated on January 1, 2010. 24 GE Capital - Real Estate debt overview (In millions) June 30, 2011 Region March 31, 2011 Financing receivables December 31, 2010 September 30, 2010 June 30, 2010 U.S. Europe Pacific Basin Americas $ 22,724 4,543 2,992 6,548 $ 24,778 4,468 3,032 6,744 $ 25,989 4,515 2,991 6,716 $ 27,628 4,719 2,974 7,160 $ 28,804 4,700 3,001 7,501 Total (a) $ 36,807 $ 39,022 $ 40,211 $ 42,481 $ 44,006 June 30, 2011 Vintage profile Originated in pre-2008 2008 2009 2010 2011 Total June 30, 2011 Property type March 31, 2011 Financing receivables December 31, 2010 September 30, 2010 June 30, 2010 Office buildings Owner occupied Apartment buildings Hotel properties Warehouse properties Retail facilities Mixed use Parking facilities Other $ 8,459 9,057 5,181 3,978 3,358 3,725 1,109 144 1,796 $ 9,210 9,548 5,825 4,351 3,435 3,581 1,110 123 1,839 $ 9,354 9,962 6,151 4,404 3,480 3,650 1,159 122 1,929 $ 10,028 10,314 6,467 4,683 3,775 3,937 1,192 121 1,964 $ 10,201 10,620 7,010 4,911 3,966 3,981 1,225 120 1,972 Total (a) $ 36,807 $ 39,022 $ 40,211 $ 42,481 $ 44,006 June 30, 2011 Contractual maturities $ 22,963 12,814 93 604 333 Due in 2011 and prior (b) 2012 2013 2014 2015 and later $ 36,807 Total $ 8,405 8,193 4,154 3,672 12,383 $ 36,807 (a) Represents total gross financing receivables for Real Estate only. (b) Includes $1,392 million relating to loans with contractual maturities prior to June 30, 2011. 25 GE Capital - Real Estate equity overview (a) (In millions, unless otherwise noted) June 30, 2011 Region Equity December 31, 2010 March 31, 2011 September 30, 2010 June 30, 2010 U.S. Europe Pacific Basin Americas $ 8,120 9,236 7,197 2,865 $ 9,138 9,277 7,131 2,940 $ 9,041 9,750 7,155 2,923 $ 9,254 9,905 7,327 2,927 $ 9,446 9,477 7,177 2,999 Total $ 27,418 $ 28,486 $ 28,869 $ 29,413 $ 29,099 June 30, 2011 Vintage profile (e) Originated in pre-2008 2008 2009 2010 2011 Total $ $ June 30, 2011 Property type Equity December 31, 2010 March 31, 2011 September 30, 2010 June 30, 2010 Office buildings Apartment buildings Warehouse properties Retail facilities Mixed use Parking facilities Owner occupied Hotel properties Other $ 14,770 4,215 3,265 2,322 1,163 16 602 368 697 $ 14,811 4,259 3,409 2,308 1,170 811 605 402 711 $ 14,537 4,359 3,465 2,859 1,126 814 695 338 676 $ 14,695 4,340 3,579 2,803 1,459 817 724 334 662 $ 14,406 4,204 3,617 2,758 1,468 819 733 341 753 Total $ 27,418 $ 28,486 $ 28,869 $ 29,413 $ 29,099 June 30, 2011 Key metrics Owned real estate (b) $ Net operating income (annualized) Net operating income yield (c) $ 24,547 1,974 136 282 479 End of period vacancies (d) 27,418 Foreclosed properties (f) March 31, 2011 23,665 $ 1,425 $ 6.0 % 20.2 % $ 606 December 31, 2010 24,616 $ 1,382 $ 5.5 % 20.6 % $ 601 25,187 September 30, 2010 $ 1,453 $ 5.7 % 20.0 % $ 629 25,549 June 30, 2010 $ 1,384 $ 5.5 % 21.0 % $ 708 25,127 1,463 5.6 % 20.7 % $ 714 (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. (f) Excludes foreclosed properties related to loans acquired at a discount with an expectation to foreclose. 26 GE Capital - Equipment leased to others (ELTO), net of depreciation and amortization overview (In millions) June 30, 2011 Collateral type CLL Aircraft Vehicles Railroad rolling stock Construction and manufacturing Marine shipping containers All other $ Total at June 30, 2011 $ December 31, 2010 Collateral type GECAS 3,003 9,324 2,932 1,687 2,088 1,182 $ 20,216 $ CLL Aircraft Vehicles Railroad rolling stock Construction and manufacturing Marine shipping containers All other $ Total at December 31, 2010 $ June 30, 2010 Collateral type $ Total at June 30, 2010 $ 32,885 - $ 32,885 $ GECAS 3,130 9,072 2,960 1,452 1,924 927 $ 19,465 $ CLL Aircraft Vehicles Railroad rolling stock Construction and manufacturing Marine shipping containers All other EFS $ 31,535 $ GECAS 3,025 9,128 3,073 1,549 1,839 1,073 $ 19,687 $ 877 $ 877 $ EFS 31,535 - $ 30,818 $ - $ 5 2 6 13 $ $ 1,089 $ - $ 5 2 7 14 $ $ 1,217 $ - $ 53,991 Total at March 31, 2011 $ September 30, 2010 Collateral type GECAS 3,141 9,246 2,917 1,434 2,045 1,108 $ 19,891 $ CLL 34,665 9,077 2,960 1,454 1,924 2,023 Aircraft Vehicles Railroad rolling stock Construction and manufacturing Marine shipping containers All other $ 52,103 Total at September 30, 2010 $ $ 33,843 9,135 3,073 1,549 1,840 2,298 $ 51,738 7 1 8 16 CLL Aircraft Vehicles Railroad rolling stock Construction and manufacturing Marine shipping containers All other EFS 32,144 - $ 32,144 $ GECAS 3,469 8,783 3,008 1,402 1,893 1,125 $ 19,680 $ Consumer 886 $ 886 $ $ 30,842 $ Total $ 35,285 9,251 2,917 1,436 2,045 2,000 $ 52,934 5 2 6 EFS 30,842 - - 13 Consumer 1,198 $ 1,198 $ - Total $ 34,311 8,789 3,008 1,404 1,893 2,329 $ 51,734 6 2 6 14 Total Consumer 1,217 March 31, 2011 Collateral type 35,888 9,329 2,932 1,689 2,088 2,065 Total Consumer 1,089 EFS 30,818 - Total Consumer 27 GE Capital - Commercial aircraft asset details June 30, 2011 Collateral type (In millions) March 31, 2011 Loans and leases December 31, 2010 September 30, 2010 June 30, 2010 Narrow-body aircraft Wide-body aircraft Cargo Regional jets Engines $ 25,558 8,724 3,228 5,095 2,093 $ 24,959 8,399 3,287 5,166 2,317 $ 24,750 8,233 3,405 5,260 2,380 $ 23,083 8,249 3,855 5,322 2,441 $ 23,040 7,763 4,211 5,521 2,509 Total (a) $ 44,698 $ 44,128 $ 44,028 $ 42,950 $ 43,044 June 30, 2011 Airline regions (In millions) March 31, 2011 Loans and leases December 31, 2010 September 30, 2010 June 30, 2010 U.S. Europe Pacific Basin Americas Other $ 13,571 10,010 8,933 5,655 6,529 $ 14,573 9,484 8,278 5,507 6,286 $ 15,123 9,258 8,113 5,313 6,221 $ 14,659 9,290 7,791 5,258 5,952 $ 14,456 9,527 7,769 5,814 5,478 Total (a) $ 44,698 $ 44,128 $ 44,028 $ 42,950 $ 43,044 June 30, 2011 Aircraft vintage profile (In millions) 0-5 years 6-10 years 11 - 15 years 15+ years $ 19,886 14,235 4,964 3,520 Total (b) $ 42,605 (a) Includes loans and financing leases of $11,937 million, $12,104 million, $12,615 million, $12,227 million, and $12,337 million (less non-aircraft loans and financing leases of $124 million, $120 million, $122 million, $119 million, and $111 million) and ELTO of $32,885 million, $32,144 million, $31,535 million, $30,842 million, and $30,818 million, at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, and June 30, 2010, respectively, related to commercial aircraft at GECAS. (b) Excludes aircraft engine loans and leases of $2,093 million at June 30, 2011. 28 GE Capital other key areas 29 GE Capital - Investment securities (In millions) Debt U.S. corporate State and municipal Residential mortgage-backed (a) Commercial mortgage-backed Asset-backed Corporate - non-U.S. Government - non-U.S. U.S. government and federal agency Amortized cost $ Retained interests Equity Available-for-sale Trading Total (In millions) Debt U.S. corporate State and municipal Residential mortgage-backed (a) Commercial mortgage-backed Asset-backed Corporate - non-U.S. Government - non-U.S. U.S. government and federal agency $ 2,897 915 1,887 1,523 3,708 1,441 2,197 2,597 $ 95 10 23 38 25 44 7 9 $ Estimated fair value (10) (228) (302) (173) (143) (84) (84) - $ $ Equity $ At December 31, 2010 Gross Gross unrealized unrealized gains losses Amortized cost 2,982 697 1,608 1,388 3,590 1,401 2,120 2,606 $ 3,490 918 2,099 1,619 3,242 1,478 1,804 2,663 $ 169 4 14 7 39 8 3 $ Estimated fair value (14) (232) (355) (183) (190) (111) (58) (5) $ 3,645 690 1,758 1,436 3,059 1,406 1,754 2,661 32 16 (3) 45 55 10 (26) 39 1,287 475 204 - (31) - 1,460 475 902 417 194 - (9) - 1,087 417 18,959 $ 471 $ (1,058) $ 18,372 $ At June 30, 2011 - 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 June 30, 2011 Gross Gross unrealized unrealized gains losses 151 93 282 767 58 116 1,105 - $ (6) (15) (7) (123) (4) (4) (3) - $ 169 447 853 621 875 731 128 - $ 18,687 $ 448 $ (1,183) $ 17,952 At December 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 (4) (213) (295) (50) (139) (80) (81) - $ 357 137 166 779 111 123 642 1,613 $ (5) (16) (3) (103) (5) (2) (6) (5) $ 337 443 920 652 902 673 105 - $ (9) (216) (352) (80) (185) (109) (52) - - - 6 (3) - - 34 (26) 69 (31) - - 46 (9) - - 2,641 $ (193) $ 3,830 $ (865) $ 3,974 $ (154) $ 4,066 $ (1,029) (a) Substantially collateralized by U.S. mortgages. 30 GE Capital - Investments measured at fair value in earnings (a) Asset balances at June 30, 2011 Investment type (In millions) Equities - trading $ Assets held for sale (LOCOM) December 31, 2010 475 $ 417 Net earnings impact for six months ending June 30, 2011 $ 38 3,286 3,538 (15) Assets of businesses held for sale (LOCOM) 895 3,127 (1) Other (Investment companies and loans) 595 390 3 Total $ 5,251 $ 7,472 $ 25 (a) Excludes derivatives portfolio. 31 GE Capital - Ending Net Investment (ENI) June 30, 2011 (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 March 31, 2011 577.1 $ $ 581.1 September 30, 2010 $ 596.2 June 30, 2010 $ 589.2 (6.4) (10.1) (12.4) (21.7) (22.1) (36.1) (36.6) (38.7) (39.2) (38.9) 534.6 $ (77.3) $ 569.8 December 31, 2010 457.3 523.1 $ (66.5) $ 456.6 530.0 $ (59.5) $ 470.5 535.3 $ (63.6) $ 471.7 528.2 (59.4) $ 468.8 32 GECC - Ratios (a) Leverage ratio (In billions) Debt Equity (b) June 30, 2011 $ Leverage ratio Debt Less: hybrid debt Less: cash and equivalents Adjusted debt March 31, 2011 458.1 78.8 $ 452.8 76.1 5.8:1 $ 458.1 (7.7) (77.4) 373.0 December 31, 2010 $ 5.9:1 $ 452.8 (7.7) (66.6) 378.5 465.4 72.9 September 30, 2010 $ 481.4 70.5 6.4:1 $ 465.4 (7.7) (59.7) 398.0 June 30, 2010 $ 476.6 69.8 6.8:1 $ 481.4 (7.7) (65.4) 408.3 6.8:1 $ 476.6 (7.7) (61.3) 407.6 Equity (b) Add: hybrid debt Adjusted equity 78.8 7.7 86.5 76.1 7.7 83.8 72.9 7.7 80.6 70.5 7.7 78.2 69.8 7.7 77.5 Adjusted leverage ratio 4.3:1 4.5:1 4.9:1 5.2:1 5.3:1 Tangible common equity to tangible assets ratio (In billions) June 30, 2011 March 31, 2011 December 31, 2010 September 30, 2010 June 30, 2010 Total equity (b) Less: Goodwill and other intangibles $ 78.8 (30.0) $ 76.1 (29.6) $ 72.9 (29.5) $ 70.5 (30.1) $ 69.8 (29.5) Tangible common equity $ 48.8 $ 46.5 $ 43.4 $ 40.4 $ 40.3 Total assets Less: Goodwill and other intangibles $ 577.1 (30.0) $ 569.8 (29.6) $ 581.1 (29.5) $ 596.1 (30.1) $ 589.2 (29.5) Tangible assets $ 547.1 $ 540.2 $ 551.6 $ 566.0 $ 559.7 Tangible common equity to tangible assets Tier 1 common ratio (c) 8.9 % 8.6 % 7.9 % 7.1 % 7.2 % 10.4 % 9.8 % 8.9 % 8.2 % 8.1 % (a) Includes discontinued operations. (b) Equity represents amounts available to GECC shareholders, excluding noncontrolling interests. (c) Estimated based on SCAP requirements. 33 GECS supplemental information 34 GECS - Investment securities (In millions) Debt U.S. corporate State and municipal Residential mortgage-backed (a) Commercial mortgage-backed Asset-backed Corporate - non-U.S. Government - non-U.S. U.S. government and federal agency At June 30, 2011 Gross Gross unrealized unrealized losses gains Amortized cost $ 20,818 3,182 2,876 2,881 3,853 2,810 2,693 3,302 $ 1,809 120 131 172 33 133 88 62 $ Estimated fair value (116) (244) (319) (203) (145) (91) (85) (28) $ At December 31, 2010 Gross Gross unrealized unrealized losses gains Amortized cost 22,511 3,058 2,688 2,850 3,741 2,852 2,696 3,336 $ 21,233 2,961 3,092 3,009 3,407 2,883 2,242 3,358 $ 1,576 45 95 145 16 116 82 57 $ Estimated fair value (237) (282) (378) (230) (193) (132) (58) (47) $ 22,572 2,724 2,809 2,924 3,230 2,867 2,266 3,368 Retained interests 32 16 (3) 45 55 10 (26) 39 Equity Available-for-sale Trading 886 475 224 - (31) - 1,079 475 500 417 213 - (8) - 705 417 Total (In millions) Debt U.S. corporate State and municipal Residential mortgage-backed (a) Commercial mortgage-backed Asset-backed Corporate - non-U.S. Government - non-U.S. U.S. government and federal agency $ $ 2,788 $ (1,265) $ 45,331 $ At June 30, 2011 - In loss position for Less than 12 months 12 months or more Gross Gross unrealized unrealized Estimated Estimated losses losses fair value fair value $ Retained interests Equity Total 43,808 $ 1,341 322 318 962 65 339 1,115 - $ (29) (20) (8) (129) (4) (7) (3) - $ 992 586 943 705 882 788 129 224 $ 43,157 $ 2,355 $ (1,591) $ 43,921 At December 31, 2010 - In loss position for Less than 12 months 12 months or more Gross Gross unrealized unrealized Estimated Estimated losses losses fair value fair value (87) (224) (311) (74) (141) (84) (82) (28) $ 2,375 949 188 831 113 448 661 1,822 $ (81) (43) (4) (104) (5) (12) (6) (47) $ 1,519 570 1,024 817 910 804 107 - $ (156) (239) (374) (126) (188) (120) (52) - - - 6 (3) - - 34 (26) 71 (31) - - 49 (8) - - 4,533 $ (231) $ 5,255 $ (1,034) $ 7,436 $ (310) $ 5,785 $ (1,281) (a) Substantially collateralized by U.S. mortgages. 35 GECS - Funding June 30, 2011 (In billions) March 31, 2011 December 31, 2010 September 30, 2010 June 30, 2010 Commercial paper Long-term debt (a) Deposits / CD's Alternate funding / other Non-recourse borrowings of consolidated securitization entities $ 40.7 326.5 41.5 25.4 29.1 $ 40.6 324.1 39.4 24.7 29.3 $ 42.0 336.0 37.3 25.2 30.0 $ 41.3 347.4 36.4 24.2 30.5 $ 45.9 337.7 31.9 26.1 33.3 Total debt $ 463.2 $ 458.1 $ 470.5 $ 479.8 $ 474.9 $ 53.7 $ 53.0 $ 51.8 $ 52.1 $ 51.7 Metrics Bank lines Commercial paper coverage (b): Bank lines Bank lines and cash and equivalents 132 % 323 % 130 % 296 % 123 % 267 % 126 % 282 % 112 % 242 % Cash and equivalents $ 78.0 $ 67.3 $ 60.3 $ 64.3 $ 59.8 LT debt < 1 year $ 72.9 $ 59.2 $ 65.6 $ 62.7 $ 63.0 (a) Includes $45 billion, $45 billion, $53 billion, $55 billion, and $58 billion of long term debt issued under the TLGP program at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, and June 30, 2010, respectively. (b) Commercial paper coverage represents bank lines, both excluding and including cash and equivalents, as a percentage of the commercial paper balance as of the end of the relevant period. 36 GECS - Ratios (a) Leverage ratio (In billions) Debt Equity (b) June 30, 2011 $ 463.2 75.1 Leverage ratio Debt Less: hybrid debt Less: cash and equivalents Adjusted debt March 31, 2011 $ 458.1 72.1 6.2:1 $ 463.2 (7.7) (78.1) 377.4 December 31, 2010 $ 6.4:1 $ 458.1 (7.7) (67.4) 383.0 470.6 69.0 September 30, 2010 $ 486.5 66.9 6.8:1 $ 470.6 (7.7) (60.4) 402.5 June 30, 2010 $ 481.7 67.3 7.3:1 $ 486.5 (7.7) (66.0) 412.8 7.2:1 $ 481.7 (7.7) (61.7) 412.3 Equity (b) Add: hybrid debt Adjusted equity 75.1 7.7 82.8 72.1 7.7 79.8 69.0 7.7 76.7 66.9 7.7 74.6 67.3 7.7 75.0 Adjusted leverage ratio 4.6:1 4.8:1 5.2:1 5.5:1 5.5:1 Tangible common equity to tangible assets ratio (In billions) June 30, 2011 March 31, 2011 December 31, 2010 September 30, 2010 June 30, 2010 Total equity (b) Less: Goodwill and other intangibles $ 75.1 (30.0) $ 72.1 (29.6) $ 69.0 (29.5) $ 66.9 (30.1) $ 67.3 (29.9) Tangible common equity $ 45.1 $ 42.5 $ 39.5 $ 36.8 $ 37.4 Total assets Less: Goodwill and other intangibles $ 605.6 (30.0) $ 597.7 (29.6) $ 608.7 (29.5) $ 624.7 (30.1) $ 617.9 (29.9) Tangible assets $ 575.6 $ 568.1 $ 579.2 $ 594.6 $ 588.0 Tangible common equity to tangible assets 7.8 % 7.5 % 6.8 % 6.2 % 6.3 % Tier 1 common ratio (c) 9.1 % 8.6 % 7.8 % 7.3 % 7.1 % (a) Includes discontinued operations. (b) Equity represents amounts available to GECS shareholders, excluding noncontrolling interests. (c) Estimated based on SCAP requirements. 37 Appendix 38 Glossary Term Definition Borrowing Financial liability (short or long-term) that obligates us to repay cash or another financial asset to another entity. Cash and 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. 39 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. 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. 40