GE Capital Second quarter 2012 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; potential market disruptions or other impacts arising in the United States or Europe from developments in the European sovereign debt situation; 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 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 excess interest refund claims (GE Money Japan); pending and future mortgage securitization claims and litigation in connection with WMC, which may affect our estimates of liability, including possible loss estimates; 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 adequacy of our cash flow and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned level; GECC’s ability to pay dividends to GE at the planned level; 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, joint ventures and dispositions and our success in completing announced transactions and integrating acquired businesses; the impact of potential information technology or data security breaches; 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 2012 supplemental information Table of Contents Page # 1. GE Capital structure a) GE Capital structure 1 2. Financial statements a) GE Capital - Condensed statement of earnings 3 b) GE Capital - Condensed statement of comprehensive income 4 c) GE Capital - Condensed statement of financial position 5 d) GE Capital - Continuing operations 6 3. GE Capital asset quality a) Assets by region 8 b) Assets in selected emerging markets 9 c) Portfolio overview and ratios 10-17 d) Nonearning and nonaccrual financing receivables 18 e) Consumer allowance for losses on financing receivables 19 f) Consumer financing receivables by region 20 g) Consumer mortgage portfolio by country 21 h) Commercial allowance for losses on financing receivables 22 i) Real estate allowance for losses on financing receivables 23 j) Commercial real estate debt and equity overview 24-25 k) Equipment leased to others overview 26 l) Commercial aircraft asset details 27 4. GE Capital other key areas a) Investment securities 29 b) Investments measured at fair value in earnings 30 c) Ending net investment 31 d) Net interest margin 32 e) GE Capital ratios 33 f) Funding 34 5. Appendix a) Glossary 36-37 GE Capital structure General Electric Company General Electric Capital Corporation (GECC) (a) 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 Corporate - Treasury operations - Run-off insurance operations (a- On February 22, 2012, General Electric Company (“GE”) merged its wholly-owned subsidiary, General Electric Capital Services, Inc. (“GECS”), with and into GECS’ wholly-owned subsidiary, General Electric Capital Corporation (“GECC”). The merger simplified GE’s financial services’ corporate structure by consolidating financial services entities and assets within our organization and simplifying Securities and Exchange Commission and regulatory reporting. Upon the merger, GECC became the surviving corporation and assumed all of GECS’ rights and obligations and became wholly-owned directly by General Electric. GE’s financial services segment, GE Capital, will continue to comprise the continuing operations of GECC, which now includes the run-off insurance operations previously held and managed in GECS. The directors and officers of GECC remain the same. 1 Financial statements 2 GE Capital - Condensed statement of earnings (a) (In millions) Revenues Revenues from services Sales of goods Total revenues June 30, 2012 $ 11,432 26 11,458 March 31, 2012 $ 11,412 30 11,442 For three months ending December 31, 2011 $ 11,545 32 11,577 September 30, 2011 $ 11,983 32 12,015 For six months ending June 30, June 30, 2012 2011 June 30, 2011 $ 12,398 42 12,440 $ 22,844 56 22,900 $ 25,392 84 25,476 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, 22-24) Depreciation and amortization Total costs and expenses 2,988 3,090 23 702 743 1,674 9,220 3,196 2,901 25 771 863 1,695 9,451 3,128 3,144 27 745 1,058 1,712 9,814 3,556 3,260 30 755 961 1,837 10,399 3,598 3,449 38 790 792 1,792 10,459 6,184 5,991 48 1,473 1,606 3,369 18,671 7,182 6,926 78 1,559 1,932 3,568 21,245 Earnings from continuing operations before income taxes Benefit (provision) for income taxes 2,238 (102) 1,991 (187) 1,763 (65) 1,616 (59) 1,981 (346) 4,229 (289) 4,231 (775) Earnings from continuing operations Earnings (loss) from discontinued operations, net of taxes 2,136 (553) 1,804 (217) 1,698 (240) 1,557 (64) 1,635 195 3,940 (770) 3,456 230 Net earnings (loss) Less: Net earnings (loss) attributable to noncontrolling interests 1,583 14 1,587 12 1,458 38 1,493 38 1,830 20 3,170 26 3,686 51 Net earnings (loss) attributable to GE Capital $ 1,569 $ 1,575 $ 1,420 $ 1,455 $ 1,810 $ 3,144 $ 3,635 (a) On February 22, 2012, our former parent GECS, merged with and into GECC, in a transaction among entities under common control. Prior period results are retrospectively adjusted to furnish comparative information. 3 GE Capital - Condensed statement of comprehensive income (a) June 30, 2012 (In millions) Net Earnings Less: Net earnings attributable to noncontrolling interests Net earnings attributable to GECC Other comprehensive income (loss), net of tax Investment securities Currency translation adjustments Cash flow hedges Benefit plans Other comprehensive income (loss), net of tax Less: Other comprehensive income (loss) attributable to noncontrolling interests Other comprehensive income (loss) attributable to GECC Comprehensive income, net of tax Less: Other comprehensive income attributable to noncontrolling interests Comprehensive income attributable to GECC For three months ending December 31, 2011 March 31, 2012 1,583 14 1,569 $ 1,587 12 1,575 $ 1,458 38 1,420 $ 1,493 38 1,455 $ 1,830 20 1,810 $ 3,170 26 3,144 $ 3,686 51 3,635 $ $ $ 510 (274) 112 (5) 343 1 342 $ $ 390 984 (190) 1,184 (10) 1,194 $ $ 248 (810) (49) 29 (582) 21 (603) $ $ 155 (690) 476 (210) (269) 1 (270) $ $ 330 116 72 (24) 494 (10) 504 $ $ 180 (390) 40 19 (151) 11 (162) $ 202 2,540 (262) (1) 2,479 (9) 2,488 $ 1,432 25 1,407 $ 2,081 2 2,079 $ 1,189 39 1,150 $ 911 59 852 $ 3,014 10 3,004 $ 3,513 27 3,486 $ 6,165 42 6,123 June 30, 2012 (In millions) $ Dividends and other transactions with shareowners Other comprehensive income (loss) - net Increase / (decrease) from net earnings attributable to the Company Balance at end of period For six months ending June 30, June 30, 2012 2011 June 30, 2011 $ GE Capital - Condensed statement of changes in shareowners' equity (a) Changes in GE Capital shareowners' equity Balance at beginning of period September 30, 2011 79,192 March 31, 2012 $ (772) (162) 1,569 $ 79,827 77,110 For three months ending December 31, 2011 $ 3 504 1,575 $ 79,192 75,959 September 30, 2011 $ 1 (270) 1,420 $ 77,110 75,108 $ (1) (603) 1,455 $ 75,959 For six months ending June 30, June 30, 2012 2011 June 30, 2011 72,104 $ 1,194 1,810 $ 75,108 77,110 $ (769) 342 3,144 $ 79,827 68,984 1 2,488 3,635 $ 75,108 (a) On February 22, 2012, our former parent GECS, merged with and into GECC, in a transaction among entities under common control. Prior period results are retrospectively adjusted to furnish comparative information. 4 GE Capital - Condensed statement of financial position (a) (In millions) Assets Cash and equivalents Investment securities (see page 29) Inventories Financing receivables - net (see pages 10 - 17) Other receivables Property, plant & equipment, less accumulated amortization of $23,671, $23,864, $23,615, $24,307 and $24,977 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 34) Accounts payable Non-recourse borrowings of consolidated securitization entities (see page 34) Bank deposits (see page 34) Long-term borrowings (see page 34) 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, 2012 $ March 31, 2012 66,252 47,906 60 273,984 13,701 $ December 31, 2011 76,165 47,814 42 281,383 14,000 $ 51,520 27,326 1,468 71,672 640 1,332 51,969 27,072 1,443 71,897 3,039 1,481 76,702 47,359 51 288,847 13,390 September 30, 2011 $ 51,419 27,230 1,546 75,612 711 1,669 83,278 46,442 44 293,204 13,689 June 30, 2011 $ 52,328 27,726 1,710 79,536 3,050 2,055 77,983 45,331 52 300,131 14,263 55,326 28,173 1,851 74,590 895 7,039 $ 558,804 $ 573,362 $ 584,536 $ 603,062 $ 605,634 $ 119,796 7,700 30,696 41,942 225,539 28,328 14,759 7,392 283 1,783 $ 132,028 8,150 29,544 41,106 229,195 30,227 14,354 7,268 305 1,226 $ 136,333 7,239 29,258 43,115 234,391 30,198 17,334 7,052 345 1,471 $ 126,866 7,995 29,022 41,515 259,404 30,405 22,886 4,440 1,813 1,552 $ 123,643 7,870 29,075 41,548 268,962 29,854 23,130 2,759 527 1,957 Total liabilities 478,218 493,403 506,736 525,898 529,325 Capital stock Accumulated other comprehensive income - net Investment securities Currency translation adjustments Cash flow hedges Benefit plans Additional paid-in-capital Retained earnings - - - - - 476 (673) (989) (568) 29,859 51,722 298 (274) (1,029) (587) 27,631 53,153 (33) (399) (1,101) (563) 27,628 51,578 (188) 303 (1,588) (353) 27,627 50,158 (436) 1,135 (1,541) (381) 27,628 48,703 Total GE Capital shareowners' equity 79,827 79,192 77,110 75,959 75,108 759 767 690 1,205 1,201 80,586 79,959 77,800 77,164 76,309 Noncontrolling interests Total equity Total liabilities and equity $ 558,804 $ 573,362 $ 584,536 $ 603,062 $ 605,634 (a) On February 22, 2012, our former parent GECS, merged with and into GECC, in a transaction among entities under common control. Prior period results are retrospectively adjusted to furnish comparative information. 5 GE Capital continuing operations (a) June 30, 2012 (In millions) Revenues Less: Interest expense Net revenues $ 11,458 (2,988) 8,470 March 31, 2012 $ 11,442 (3,196) 8,246 For three months ending December 31, 2011 $ 11,577 (3,128) 8,449 September 30, 2011 $ 12,015 (3,556) 8,459 For six months ending June 30, June 30, 2012 2011 June 30, 2011 $ 12,440 (3,598) 8,842 $ 22,900 (6,184) 16,716 $ 25,476 (7,182) 18,294 Costs and expenses Selling, general and administrative Depreciation and amortization Operating and other expenses Total costs and expenses 2,804 1,674 1,011 5,489 2,739 1,695 958 5,392 2,876 1,712 1,040 5,628 2,811 1,837 1,234 5,882 2,802 1,792 1,475 6,069 5,543 3,369 1,969 10,881 5,533 3,568 3,030 12,131 Earnings before income taxes and provision for losses Less: Provision for losses on financing receivables 2,981 (743) 2,854 (863) 2,821 (1,058) 2,577 (961) 2,773 (792) 5,835 (1,606) 6,163 (1,932) Earnings before income taxes Benefit (provision) for income taxes 2,238 (102) 1,991 (187) 1,763 (65) 1,616 (59) 1,981 (346) 4,229 (289) 4,231 (775) Earnings from continuing operations before noncontrolling interests Less: Net earnings (loss) attributable to noncontrolling interests $ 2,136 14 $ 1,804 12 $ 1,698 38 $ 1,557 38 $ 1,635 20 $ 3,940 26 $ 3,456 51 GE Capital segment profit $ 2,122 $ 1,792 $ 1,660 $ 1,519 $ 1,615 $ 3,914 $ 3,405 June 30, 2012 (In millions) Segment profit CLL Consumer Real Estate EFS GECAS $ $ GE Capital corporate items and eliminations GE Capital segment profit $ March 31, 2012 626 907 221 122 308 2,184 (62) $ 2,122 $ $ For three months ending December 31, 2011 685 829 56 71 318 1,959 (167) $ 1,792 $ $ September 30, 2011 777 617 (153) 110 315 1,666 (6) $ 1,660 $ $ For six months ending June 30, June 30, 2012 2011 June 30, 2011 688 803 (82) 79 208 1,696 (177) $ 1,519 $ $ 701 1,042 (335) 139 321 1,868 (253) $ 1,615 $ $ 1,311 1,736 277 193 626 4,143 (229) $ 3,914 $ $ 1,255 2,283 (693) 251 627 3,723 (318) 3,405 (a) On February 22, 2012, our former parent GECS, merged with and into GECC, in a transaction among entities under common control. Prior period results are retrospectively adjusted to furnish comparative information. 6 GE Capital asset quality 7 GE Capital - Assets by region (a) (In millions) June 30, 2012 Property, plant and equipment (net) Financing receivables (net) 135,986 $ $ 316,812 U.S. (b) Europe (c) Western (including U.K.) Eastern Pacific Basin Americas (excluding U.S.) Other (d) $ Total $ 273,984 $ 51,969 $ 557,323 Total at March 31, 2012 $ 281,383 $ 51,520 $ 572,030 Total at December 31, 2011 $ 288,847 $ 51,419 $ 582,867 Total at September 30, 2011 $ 293,204 $ 52,328 $ 601,007 Total at June 30, 2011 $ 300,131 $ 55,326 $ 598,595 69,207 16,143 23,630 16,792 12,226 10,533 Total assets 4,469 194 2,640 1,447 32,686 $ 92,671 23,413 45,627 27,043 51,757 At March 31, 2012 December 31, 2011 September 30, 2011 June 30, 2011 Total assets Total assets Total assets Total assets 327,085 $ 96,735 25,136 45,733 26,981 50,360 $ 572,030 331,967 $ 98,651 24,509 46,749 30,400 50,591 $ 582,867 337,868 $ 103,999 26,666 47,997 31,814 52,663 $ 601,007 326,441 109,310 29,561 48,023 32,141 53,119 $ 598,595 (a) Excludes assets of discontinued operations. (b) Total assets include our global Treasury operations, including both U.S. and non U.S. cash and equivalents. (c) Total assets include non-financing assets (cash, goodwill, and property, plant and equipment) of approximately $10,500 million at June 30, 2012. (d) Includes total assets of $49,927 million at GECAS, approximately $12,400 million of which relates to European airlines and other investments at June 30, 2012. 8 GE Capital - Assets in selected emerging markets (In millions) Selected emerging markets (a) Eastern Europe Poland Czech Republic Hungary Total Eastern Europe June 30, 2012 Property, plant and equipment (net) Financing receivables (net) $ 7,723 4,829 2,680 15,232 $ 101 48 34 183 Total assets $ 10,598 6,815 3,916 21,329 $ At March 31, 2012 December 31, 2011 September 30, 2011 June 30, 2011 Total assets Total assets Total assets Total assets 11,367 7,546 4,016 22,929 $ 10,942 7,195 4,043 22,180 $ 12,376 7,305 4,497 24,178 $ 13,689 7,844 4,817 26,350 Pacific Basin and Other India Thailand Total Pacific Basin and Other 1,131 117 1,248 14 14 1,475 1,737 3,212 1,501 1,699 3,200 1,495 1,619 3,114 1,682 1,636 3,318 1,808 1,618 3,426 Americas Mexico Total Americas 5,212 5,212 799 799 7,618 7,618 7,732 7,732 8,215 8,215 8,253 8,253 8,344 8,344 Total $ 21,692 $ 996 $ 32,159 Total at March 31, 2012 $ 22,549 $ 974 $ 33,861 Total at December 31, 2011 $ 22,209 $ 999 $ 33,509 Total at September 30, 2011 $ 24,196 $ 992 $ 35,749 Total at June 30, 2011 $ 25,684 $ 1,070 $ 38,120 $ 33,861 $ 33,509 $ 35,749 $ 38,120 (a) We have disclosed here selected emerging markets where our total assets at June 30, 2012 exceed $1 billion. Assets of discontinued operations are excluded. 9 GE Capital - CLL portfolio overview (a) (b) (In millions, unless otherwise noted) Financing receivables (c) December 31, 2011 Balances June 30, 2012 CLL Americas Europe Asia Other Total $ $ March 31, 2012 77,241 34,722 11,313 711 123,987 $ $ June 30, 2012 CLL Americas Europe Asia Other Total $ $ 1,739 1,390 232 9 3,370 $ $ $ 662 484 87 1 1,234 $ $ $ 802 458 112 2 1,374 $ $ 80,505 36,899 11,635 436 129,475 $ $ $ $ 1,862 1,167 269 11 3,309 $ $ 889 400 157 4 1,450 81,072 37,130 11,914 469 130,585 June 30, 2011 $ $ September 30, 2011 $ $ Allowance for losses (e) December 31, 2011 March 31, 2012 1,967 1,086 230 16 3,299 $ $ 995 403 150 5 1,553 121 33 29 183 $ $ 133 26 51 2 212 $ $ 120 50 14 2 186 $ $ 153 70 40 263 2,060 1,156 266 6 3,488 $ September 30, 2011 $ 81,518 37,897 11,759 585 131,759 June 30, 2011 June 30, 2011 $ 1,124 433 180 6 1,743 $ Write-offs (net) - for three months ending March 31, December 31, September 30, 2012 2011 2011 June 30, 2012 CLL Americas Europe Asia Other Total 1,664 1,354 245 9 3,272 $ $ Nonearning receivables (d) December 31, 2011 March 31, 2012 June 30, 2012 CLL Americas Europe Asia Other Total 79,645 35,613 11,048 382 126,688 September 30, 2011 June 30, 2011 $ $ 139 64 71 274 (a) During the third quarter of 2011, we transferred our Railcar lending and leasing portfolio from CLL Other to CLL Americas. Prior-period amounts were reclassified to conform to the current-period presentation. (b) Local currency exposure includes amounts payable to the Corporation by borrowers with a country of residence other than the one in which the credit is booked. (c) Financing receivables include impaired loans of $5,811 million at June 30, 2012. (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 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. (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. 10 GE Capital - CLL portfolio overview (a) Ratios Nonearning receivables as a percent of financing receivables (b) March 31, December 31, September 30, 2012 2011 2011 June 30, 2012 CLL Americas Europe Asia Other Total 2.3 % 4.0 2.1 1.3 2.7 38.1 % 34.8 37.5 11.1 36.6 June 30, 2012 CLL Americas Europe Asia Other Total 2.4 % 2.9 1.9 3.4 2.5 47.7 % 34.3 58.4 36.4 43.8 50.6 % 37.1 65.2 31.3 47.1 Allowance for losses as a percent of total financing receivables (c) March 31, December 31, September 30, 2012 2011 2011 1.0 % 1.3 1.0 0.5 1.1 1.1 % 1.1 1.3 0.9 1.1 0.6 % 0.4 1.0 0.6 June 30, 2012 0.7 % 0.3 1.8 2.0 0.7 March 31, 2012 1.90 % 2.05 % 0.6 % 0.5 0.5 1.8 0.6 CLL December 31, 2011 1.99 % 2.5 % 3.1 2.3 1.0 2.6 June 30, 2011 54.6 % 37.5 67.7 100.0 50.0 June 30, 2011 1.2 % 1.1 1.3 1.1 1.2 Write-offs as a percent of financing receivables (d) March 31, December 31, September 30, 2012 2011 2011 June 30, 2012 Delinquency 48.2 % 33.8 45.7 22.2 42.0 0.9 % 1.4 0.8 0.1 1.0 CLL Americas Europe Asia Other Total 2.3 % 3.2 2.3 2.5 2.6 Allowance for losses as a percent of nonearning receivables (c) March 31, December 31, September 30, 2012 2011 2011 June 30, 2012 CLL Americas Europe Asia Other Total 2.1 % 3.8 2.2 2.4 2.6 June 30, 2011 1.4 % 1.1 1.5 1.0 1.3 June 30, 2011 0.8 % 0.7 1.4 0.8 September 30, 2011 1.99 % 0.7 % 0.7 2.4 0.8 June 30, 2011 1.94 % (a) During the third quarter of 2011, we transferred our Railcar lending and leasing portfolio from CLL Other to CLL Americas. Prior-period amounts were reclassified to conform to the current-period 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 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 judgmen 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 lev 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. 11 GE Capital - Portfolio overview (In millions, unless otherwise noted) Balances June 30, 2012 EFS GECAS Other $ 5,159 12,046 587 $ June 30, 2012 EFS GECAS Other $ 2 56 22 $ $ 12 32 12 $ 29 17 42 $ $ 5,912 11,901 1,282 $ 5,977 11,841 1,388 June 30, 2011 $ Nonearning receivables (b) December 31, September 30, 2011 2011 $ 22 55 65 Allowance for losses (c) December 31, 2011 March 31, 2012 25 14 20 $ 26 17 37 $ 135 62 71 $ September 30, 2011 $ 36 14 43 24 11 10 $ - $ (1) 1 16 $ (1) (1) 12 6,143 11,952 1,517 June 30, 2011 136 64 87 June 30, 2011 $ Write-offs (net) - for three months ending March 31, December 31, September 30, 2012 2011 2011 June 30, 2012 EFS GECAS Other 5,287 11,721 681 March 31, 2012 June 30, 2012 EFS GECAS Other Financing receivables (a) December 31, September 30, 2011 2011 March 31, 2012 35 15 54 June 30, 2011 $ (7) 3 8 (a) Financing receivables include $2 million, $21 million, and $46 million of impaired loans at EFS, GECAS, and Other, respectively, at June 30, 2012. (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. 12 GE Capital - Portfolio overview Ratios Nonearning receivables as a percent of financing receivables (a) March 31, December 31, September 30, 2012 2011 2011 June 30, 2012 EFS GECAS Other % 0.5 3.7 F % 57.1 54.5 0.2 % 0.3 2.0 86.2 % 82.4 47.6 118.2 % 30.9 56.9 0.5 % 0.1 2.9 0.4 % 0.1 2.9 1.8 % 0.4 6.3 - % (0.1) % 4.8 2.2 % 0.5 5.7 June 30, 2011 26.7 % 22.6 60.6 25.7 % 23.4 62.1 June 30, 2011 0.6 % 0.1 3.1 Write-offs (net) as a percent of financing receivables (c) March 31, December 31, September 30, 2012 2011 2011 June 30, 2012 EFS GECAS Other 2.3 % 0.5 5.1 Allowance for losses as a percent of total financing receivables (b) March 31, December 31, September 30, 2012 2011 2011 June 30, 2012 EFS GECAS Other 0.4 % 0.5 5.1 Allowance for losses as a percent of nonearning receivables (b) March 31, December 31, September 30, 2012 2011 2011 June 30, 2012 EFS GECAS Other 0.5 % 0.1 6.2 June 30, 2011 (0.1) % 3.3 0.6 % 0.1 3.6 June 30, 2011 (0.4) % 0.1 2.0 (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. 13 GE Capital - Portfolio overview (In millions, unless otherwise noted) Financing receivables (a) December 31, 2011 Balances June 30, 2012 Real Estate Debt (b) Business Properties (e) Total $ $ March 31, 2012 22,409 5,301 27,710 $ $ June 30, 2012 Real Estate Debt Business Properties Total $ $ Real Estate Debt Business Properties Total $ $ $ $ $ $ $ 541 249 790 $ $ 949 140 1,089 25,748 8,630 34,378 June 30, 2011 $ $ September 30, 2011 $ $ 714 314 1,028 $ $ 978 163 1,141 123 23 146 $ $ 153 33 186 $ $ 105 35 140 $ $ 151 36 187 680 323 1,003 $ September 30, 2011 $ 27,750 9,057 36,807 June 30, 2011 June 30, 2011 $ 1,092 184 1,276 $ Write-offs (net) - for three months ending March 31, December 31, September 30, 2012 2011 2011 June 30, 2012 Real Estate Debt Business Properties Total $ 812 117 929 $ 24,501 8,248 32,749 Allowance for losses (d) December 31, 2011 March 31, 2012 682 105 787 $ $ 522 239 761 $ June 30, 2012 $ Nonearning receivables (c) December 31, 2011 March 31, 2012 403 227 630 $ 23,518 8,013 31,531 September 30, 2011 June 30, 2011 $ $ 91 27 118 (a) Financing receivables include $7,466 million of impaired loans at Real Estate at June 30, 2012. (b) Financing receivables include $55 million of construction loans at June 30, 2012. (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. (e) Transferred $2.4 billion of financing receivables to assets held for sale reflecting our commitment to sell a portion of the Business Property business in Real Estate. 14 GE Capital - Portfolio overview Ratios Nonearning receivables as a percent of financing receivables (a) March 31, December 31, September 30, 2012 2011 2011 June 30, 2012 Real Estate Debt Business Properties Total 1.8 % 4.3 2.3 169.2 % 46.3 124.9 175.4 % 56.2 137.8 3.5 % 1.5 2.9 3.9 % 1.7 3.3 2.1 % 1.4 2.0 June 30, 2012 2.5 % 1.6 2.3 Real Estate December 31, 2011 March 31, 2012 2.81 % 1.7 % 1.7 1.7 3.08 % 2.76 % 2.5 % 3.6 2.7 June 30, 2011 137.0 % 51.9 111.0 160.6 % 57.0 127.2 June 30, 2011 3.8 % 1.9 3.3 Write-offs as a percent of financing receivables (c) March 31, December 31, September 30, 2012 2011 2011 June 30, 2012 Delinquency 155.6 % 49.0 122.1 3.0 % 2.0 2.8 Real Estate Debt Business Properties Total 2.8 % 3.6 3.0 Allowance for losses as a percent of total financing receivables (b) March 31, December 31, September 30, 2012 2011 2011 June 30, 2012 Real Estate Debt Business Properties Total 2.2 % 3.0 2.4 Allowance for losses as a percent of nonearning receivables (b) March 31, December 31, September 30, 2012 2011 2011 June 30, 2012 Real Estate Debt Business Properties Total 2.2 % 3.0 2.4 June 30, 2011 3.9 % 2.0 3.5 June 30, 2011 2.3 % 1.6 2.1 September 30, 2011 4.18 % 1.3 % 1.2 1.2 June 30, 2011 4.12 % (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. 15 GE Capital - Consumer portfolio overview (In millions, unless otherwise noted) Balances June 30, 2012 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 $ $ 33,826 17,960 45,531 4,740 7,643 109,700 $ $ $ 2,720 243 773 28 380 4,144 $ $ $ 481 665 1,724 79 179 3,128 $ $ $ 498 726 1,845 88 195 3,352 $ $ 35,550 18,544 46,689 5,691 7,244 113,718 $ $ $ $ 2,870 263 990 43 419 4,585 $ $ 546 717 2,008 101 199 3,571 38,018 19,801 43,249 6,462 8,017 115,547 June 30, 2011 $ $ September 30, 2011 $ $ Allowance for losses (c) December 31, 2011 March 31, 2012 3,098 299 882 35 441 4,755 $ $ September 30, 2011 $ $ 622 816 1,953 123 211 3,725 43 121 575 11 37 787 $ $ 85 143 641 17 46 932 $ $ 116 130 601 15 33 895 $ $ 47 172 537 15 45 816 39,990 21,047 42,178 7,141 8,528 118,884 June 30, 2011 3,266 308 790 39 490 4,893 June 30, 2011 $ $ Write-offs (net) - for three months ending March 31, December 31, September 30, 2012 2011 2011 June 30, 2012 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 2,863 253 876 30 381 4,403 $ $ September 30, 2011 Nonearning receivables (b) December 31, 2011 March 31, 2012 June 30, 2012 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 35,257 18,963 44,283 5,166 7,520 111,189 $ June 30, 2012 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 Financing receivables (a) December 31, 2011 March 31, 2012 667 934 1,846 143 218 3,808 June 30, 2011 $ $ 45 195 652 27 43 962 (a) Financing receivables include impaired loans of $3,003 million at June 30, 2012. (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. 16 GE Capital - Consumer portfolio overview Nonearning receivables as a percent of financing receivables (a) March 31, December 31, September 30, 2012 2011 2011 Ratios June 30, 2012 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 8.0 % 1.4 1.7 0.6 5.0 3.8 17.7 % 273.7 223.0 282.1 47.1 75.5 19.0 % 272.6 202.8 234.9 47.5 77.9 20.1 % 272.9 221.4 351.4 47.8 78.3 1.4 % 3.8 4.2 1.7 2.6 3.0 1.5 % 3.9 4.3 1.8 2.7 3.1 1.6 % 4.1 4.5 1.9 2.6 3.2 Write-offs as a percent of financing receivables (c) March 31, December 31, September 30, 2012 2011 2011 June 30, 2012 0.5 % 2.6 5.1 0.9 2.0 2.9 June 30, 2012 Delinquency 17.4 % 287.0 210.6 293.3 51.2 76.1 1.4 % 3.7 3.8 1.7 2.3 2.9 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 8.1 % 1.5 2.0 0.5 5.5 4.1 Allowance for losses as a percent of total financing receivables (b) March 31, December 31, September 30, 2012 2011 2011 June 30, 2012 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 8.1 % 1.4 2.1 0.8 5.8 4.0 Allowance for losses as a percent of nonearning receivables (b) March 31, December 31, September 30, 2012 2011 2011 June 30, 2012 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 8.1 % 1.3 2.0 0.6 5.1 4.0 1.0 % 3.1 5.6 1.3 2.5 3.3 Consumer December 31, 2011 March 31, 2012 6.74 % 1.3 % 2.7 5.3 1.0 1.7 3.1 6.67 % 6.93 % 0.5 % 3.4 5.0 0.9 2.2 2.8 September 30, 2011 7.22 % June 30, 2011 8.2 % 1.5 1.9 0.5 5.7 4.1 June 30, 2011 20.4 % 303.2 233.7 366.7 44.5 77.8 June 30, 2011 1.7 % 4.4 4.4 2.0 2.6 3.2 June 30, 2011 0.5 % 3.8 6.2 1.5 2.1 3.3 % June 30, 2011 7.23 % (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. 17 GE Capital - Nonearning and nonaccrual financing receivables ($ millions) June 30, 2012 Commercial CLL EFS GECAS Other Total Commercial Nonearning financing receivables (a) Nonaccrual financing receivables (b) $ $ Real Estate Consumer Total $ 3,370 2 56 22 3,450 4,792 52 344 46 5,234 630 5,380 4,144 4,373 8,224 $ 14,987 (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 $15.0 billion includes $8.2 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. 18 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 credit U.S. installment and revolving credit Non - U.S. auto Other Total Consumer Balance January 1, 2012 Provision charged to operations Gross write-offs (b) Other (a) Balance June 30, 2012 Recoveries (b) $ 546 717 2,008 101 199 $ 65 220 937 15 55 $ (2) (8) (5) (9) 8 $ (165) (543) (1,488) (77) (124) $ 37 279 272 49 41 $ 481 665 1,724 79 179 $ 3,571 $ 1,292 $ (16) $ (2,397) $ 678 $ 3,128 Balance January 1, 2011 Provision charged to operations Gross write-offs (b) Other (a) Balance June 30, 2011 Recoveries (b) $ 689 937 2,333 168 259 $ 30 311 941 26 59 $ 32 64 1 12 4 $ (112) (664) (1,688) (126) (152) $ 28 286 259 63 48 $ 667 934 1,846 143 218 $ 4,386 $ 1,367 $ 113 $ (2,742) $ 684 $ 3,808 (a) Other primarily included the effects of currency exchange. (b) Net write-offs (write-offs less recoveries) in certain portfolios may exceed the beginning allowance for losses as our revolving credit portfolios turn over more than once per year or, in all portfolios, can reflect losses that are incurred subsequent to the beginning of the fiscal year due to information becoming available during the current year, which may identify further deterioration on existing financing receivables. 19 GE Capital - Consumer financing receivables by region (In millions) June 30, 2012 Installment and revolving credit Mortgages U.S. Europe Western Eastern Pacific Basin Americas Other $ Total at June 30, 2012 $ - $ 26,270 7,094 190 272 December 31, 2011 33,826 $ Total at December 31, 2011 $ - $ June 30, 2011 $ $ Total at June 30, 2011 $ - $ $ 46,689 65,233 $ 42,178 4,740 $ 63,225 $ $ 5,691 $ - $ $ 838 $ 7,244 47,527 40,259 17,289 8,179 152 312 $ 113,718 March 31, 2012 Installment and revolving credit Mortgages U.S. Europe Western Eastern Pacific Basin Americas Other $ Total at March 31, 2012 $ - $ 27,242 7,493 208 314 September 30, 2011 35,257 $ Total at September 30, 2011 $ - $ 63,246 $ 43,249 $ 63,050 $ 5,166 $ - $ $ 7,520 6,462 $ 111,189 Total 885 $ 2,542 4,418 172 $ 45,111 39,647 17,485 8,490 141 315 Other (a) 4,187 1,195 1,079 1 $ Total 828 2,044 4,493 151 4 - Auto $ 7,438 5,154 7,033 171 5 $ Other (a) 3,592 696 878 - Installment and revolving credit 29,031 8,363 225 34 365 38,018 Auto $ 6,769 4,803 7,253 137 1 Mortgages U.S. Europe Western Eastern Pacific Basin Americas Other 44,283 8,017 44,134 43,198 19,130 8,509 205 371 $ 115,547 Total 889 $ 2,755 4,677 207 $ 109,700 Total Other (a) 7,141 46,894 38,004 16,461 7,939 129 273 2,111 4,137 155 3 - 4,547 1,326 1,267 1 $ 7,643 $ Auto $ 1,363 Other (a) - $ Total 1,870 4,301 104 5 - 3,759 997 935 - 7,782 5,675 7,384 196 10 $ $ Auto Installment and revolving credit 30,499 8,783 245 51 412 39,990 - 6,850 4,658 6,884 149 3 Mortgages U.S. Europe Western Eastern Pacific Basin Americas Other 63,491 Other (a) 3,364 630 746 - Installment and revolving credit 27,539 7,497 205 309 35,550 $ 6,500 4,436 6,899 124 1 Mortgages U.S. Europe Western Eastern Pacific Basin Americas Other 45,531 Auto 8,528 43,067 45,583 20,461 9,103 247 423 $ 118,884 (a) Represents mainly small and medium enterprise loans. 20 GE Capital - Consumer mortgage portfolio by country (a) (In millions) Financing receivables June 30, 2012 As a % of total Nonearning receivables Delinquent more than 30 days Financing receivables March 31, 2012 As a % of total Nonearning receivables Delinquent more than 30 days U.K. (b) (d) France (d) Poland Czech Republic Netherlands Hungary Spain All other $ 16,344 8,025 5,162 1,042 839 781 833 800 48.3 % 23.7 15.3 3.1 2.5 2.3 2.5 2.4 12.2 % 3.4 1.3 2.5 1.6 17.8 14.2 9.4 19.9 % 3.8 2.6 3.2 2.0 22.4 26.6 11.2 U.K. France Poland Czech Republic Netherlands Hungary Spain All other $ 16,768 8,418 5,423 1,126 916 827 894 885 47.6 % 23.9 15.4 3.2 2.6 2.3 2.5 2.5 12.7 % 3.3 1.2 2.4 1.5 16.6 14.7 8.4 19.1 % 3.7 2.5 3.1 1.8 21.3 27.0 12.7 Total at June 30, 2012 (c) $ 33,826 100.0 % 8.0 % 12.5 % Total at March 31, 2012 $ 35,257 100.0 % 8.1 % 12.0 % Financing receivables December 31, 2011 U.K. France Poland Czech Republic Netherlands Hungary Spain All other $ 16,898 8,520 5,396 1,095 945 883 920 893 Total at December 31, 2011 $ 35,550 Financing receivables June 30, 2011 As a % of total Nonearning receivables 47.5 % 24.0 15.2 3.1 2.7 2.5 2.6 2.5 100.0 As a % of total Delinquent more than 30 days Financing receivables September 30, 2011 As a % of total Nonearning receivables Delinquent more than 30 days 12.5 % 3.4 1.2 2.1 1.5 13.5 17.1 11.1 20.0 % 3.6 2.5 3.0 1.7 18.4 27.3 10.0 U.K. France Poland Czech Republic Netherlands Hungary Spain All other $ 17,607 9,101 5,895 1,228 1,033 1,109 1,003 1,042 46.3 % 23.9 15.5 3.2 2.7 2.9 2.6 2.7 13.0 % 3.2 1.1 2.0 1.3 12.1 17.3 8.5 20.9 % 3.5 2.7 2.7 1.7 16.1 27.8 11.3 8.1 % 12.3 % Total at September 30, 2011 $ 38,018 100.0 % 8.1 % 12.6 % Nonearning receivables Delinquent more than 30 days U.K. France Poland Czech Republic Netherlands Hungary Spain All other $ 18,452 9,581 6,189 1,295 1,098 1,160 1,059 1,156 46.1 % 24.0 15.5 3.2 2.7 2.9 2.6 2.9 13.2 % 3.2 1.1 2.0 1.5 10.8 16.8 10.7 21.3 % 3.6 2.2 2.7 1.6 15.0 25.6 11.2 Total at June 30, 2011 $ 39,990 100.0 % 8.2 % 12.6 % (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, 2012, we had in repossession stock 474 houses in the U.K., which had a value of approximately $0.1 billion. (c) At June 30, 2012, 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. 84% of these loans are in our U.K. and France portfolios, which comprise mainly loans with interest-only payments, high loan-to-value ratios at inception and introductory below market rates, have a delinquency rate of 15% and have a loan-to-value ratio at origination of 78%. At June 30, 2012, 8% (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 84% and 57%, respectively. 21 GE Capital - Commercial allowance for losses on financing receivables Balance January 1, 2012 (In millions) CLL Americas Europe Asia Other $ Provision charged to operations 889 400 157 4 $ 57 158 13 - Gross write-offs (b) Other (a) $ (30) (15) (3) (1) $ Balance June 30, 2012 Recoveries (b) (306) (95) (89) (2) $ 52 36 9 $ - 662 484 87 1 EFS 26 10 - (24) - 12 GECAS 17 26 - (11) - 32 Other 37 5 (20) (10) - 12 Total Commercial $ Balance January 1, 2011 (In millions) CLL Americas Europe Asia Other 1,530 $ $ 269 Provision charged to operations 1,288 429 222 6 $ 219 73 77 - EFS 22 11 GECAS 20 (2) Other 58 11 Total Commercial $ $ 2,045 $ 389 (69) $ (72) 30 10 - $ (1) 1 (366) (133) (147) - $ (670) 55 34 18 $ 7 1,124 433 180 6 35 - 15 1 $ 1,290 Balance June 30, 2011 - (17) $ $ Recoveries (b) (3) (32) 97 (4) - $ $ Gross write-offs (b) Other (a) $ (537) 115 54 $ 1,847 (a) Other primarily included transfers to held for sale and the effects of currency exchange. (b) Net write-offs (write-offs less recoveries) in certain portfolios may exceed the beginning allowance for losses as our revolving credit portfolios turn over more than once per year or, in all portfolios, can reflect losses that are incurred subsequent to the beginning of the fiscal year due to information becoming available during the current year, which may identify further deterioration on existing financing receivables. 22 GE Capital - Real Estate allowance for losses on financing receivables Provision charged to operations Balance January 1, 2012 (In millions) Gross write-offs Other (a) (b) Balance June 30, 2012 Recoveries Real Estate Debt Business Properties $ 949 140 $ 17 28 $ (8) (7) $ (281) (58) $ 5 2 $ 682 105 Total Real Estate $ 1,089 $ 45 $ (15) $ (339) $ 7 $ 787 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 (a) Other primarily included the effects of currency exchange. (b) Includes $7 million of allowance for losses transferred to assets held for sale reflecting our commitment to sell a portion of the Business Property business in Real Estate. 23 GE Capital - Real Estate debt overview (In millions) June 30, 2012 Region March 31, 2012 Financing receivables December 31, 2011 September 30, 2011 June 30, 2011 U.S. Europe Pacific Basin Americas $ 16,687 3,802 2,117 5,104 $ 19,779 3,973 2,441 5,338 $ 20,622 4,073 2,686 5,368 $ 21,335 4,392 2,953 5,698 $ 22,724 4,543 2,992 6,548 Total (a) $ 27,710 $ 31,531 $ 32,749 $ 34,378 $ 36,807 June 30, 2012 Property type March 31, 2012 Financing receivables December 31, 2011 September 30, 2011 June 30, 2011 Office buildings Owner occupied Apartment buildings Hotel properties Warehouse properties Retail facilities Mixed use Parking facilities Other $ 6,043 5,301 3,828 3,490 3,393 3,112 738 71 1,734 $ 6,659 8,020 4,315 3,603 3,091 3,247 850 134 1,612 $ 7,152 8,248 4,466 3,752 3,156 3,246 940 139 1,650 $ 7,291 8,630 4,820 3,853 3,317 3,458 1,082 142 1,785 $ 8,459 9,057 5,181 3,978 3,358 3,725 1,109 144 1,796 Total (a) $ 27,710 $ 31,531 $ 32,749 $ 34,378 $ 36,807 June 30, 2012 Vintage profile Originated in pre-2009 2009 2010 2011 2012 Total Contractual maturities $ 23,295 57 503 1,955 1,900 Due in 2012 and prior (b) 2013 2014 2015 2016 and later $ 27,710 Total June 30, 2012 $ 6,406 4,483 5,076 3,226 8,519 $ 27,710 (a) Represents total gross financing receivables for Real Estate only. (b) Includes $662 million relating to loans with contractual maturities prior to June 30, 2012. 24 GE Capital - Real Estate equity overview (a) (In millions, unless otherwise noted) June 30, 2012 Region Equity December 31, 2011 March 31, 2012 September 30, 2011 June 30, 2011 U.S. Europe Pacific Basin Americas $ 6,849 7,278 7,196 2,624 $ 7,060 7,532 6,842 2,709 $ 7,268 7,553 6,955 2,635 $ 7,889 8,590 7,193 2,756 $ 8,120 9,236 7,197 2,865 Total $ 23,947 $ 24,143 $ 24,411 $ 26,428 $ 27,418 June 30, 2012 Property type Equity December 31, 2011 March 31, 2012 September 30, 2011 June 30, 2011 Office buildings Apartment buildings Warehouse properties Retail facilities Mixed use Parking facilities Owner occupied Hotel properties Other $ 12,943 3,463 2,823 2,036 1,092 8 579 306 697 $ 13,154 3,428 2,929 2,066 953 13 613 315 672 $ 13,117 3,644 2,949 2,110 997 13 601 333 647 $ 14,163 4,168 3,091 2,222 1,139 15 607 348 675 $ 14,770 4,215 3,265 2,322 1,163 16 602 368 697 Total $ 23,947 $ 24,143 $ 24,411 $ 26,428 $ 27,418 June 30, 2012 Key metrics Owned real estate (b) $ Net operating income (annualized) Net operating income yield (c) $ 20,384 18.0 % $ Total 966 20,664 December 31, 2011 $ 1,212 $ 5.8 % 19.0 % $ 734 21,007 September 30, 2011 $ 1,238 $ 5.7 % 18.9 % $ 692 22,753 June 30, 2011 $ 1,351 $ 5.8 % 19.5 % $ 745 23,665 1,425 6.0 % 20.2 % $ 606 June 30, 2012 Vintage profile (f) Originated in pre-2009 2009 2010 2011 2012 $ 1,239 $ 6.0 % End of period vacancies (d) Foreclosed properties (e) March 31, 2012 $ 22,368 88 156 655 680 $ 23,947 (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) Excludes foreclosed properties related to loans acquired at a discount with an expectation to foreclose. (f) Includes foreclosed properties based on date of foreclosure. 25 GE Capital - Equipment leased to others (ELTO), net of depreciation and amortization overview (In millions) June 30, 2012 Collateral type CLL Aircraft Vehicles Railroad rolling stock Construction and manufacturing All other $ Total at June 30, 2012 $ December 31, 2011 Collateral type GECAS 3,033 8,222 2,796 1,829 1,663 $ 17,543 $ CLL Aircraft Vehicles Railroad rolling stock Construction and manufacturing All other $ Total at December 31, 2011 $ June 30, 2011 Collateral type $ Total at June 30, 2011 $ 32,387 - $ 32,387 $ GECAS 3,125 8,769 2,853 1,669 1,492 $ 17,908 $ CLL Aircraft Vehicles Railroad rolling stock Construction and manufacturing All other EFS $ 31,146 $ GECAS 3,003 9,324 2,932 1,687 3,270 $ 20,216 $ 825 $ 825 $ EFS 31,146 - $ 32,885 $ - $ 2 4 6 $ 857 $ 857 $ - $ 3 1 5 9 $ $ 877 $ - $ 50,761 Total at March 31, 2012 $ September 30, 2011 Collateral type GECAS 2,935 8,656 2,822 1,688 1,768 $ 17,869 $ CLL 34,271 8,772 2,853 1,670 2,354 Aircraft Vehicles Railroad rolling stock Construction and manufacturing All other $ 49,920 Total at September 30, 2011 $ $ 35,888 9,329 2,932 1,689 4,153 $ 53,991 5 2 6 13 CLL Aircraft Vehicles Railroad rolling stock Construction and manufacturing All other EFS 31,557 - $ 31,557 $ GECAS 3,083 8,970 2,892 1,674 1,415 $ 18,034 $ Consumer 851 $ 851 $ $ 31,846 $ Total $ 34,492 8,658 2,822 1,688 2,624 $ 50,284 2 5 EFS 31,846 - - 7 Consumer 867 $ 867 $ - Total $ 34,929 8,973 2,892 1,676 2,288 $ 50,758 3 2 6 11 Total Consumer 877 March 31, 2012 Collateral type 35,420 8,224 2,796 1,829 2,492 Total Consumer EFS 32,885 - Total Consumer 26 GE Capital - Commercial aircraft asset details June 30, 2012 Collateral type (In millions) Loans and leases December 31, 2011 March 31, 2012 September 30, 2011 June 30, 2011 Narrow-body aircraft Wide-body aircraft Cargo Regional jets Engines $ 25,141 8,989 3,422 4,695 2,074 $ 24,336 8,497 3,561 4,802 1,970 $ 24,030 8,375 3,599 4,889 2,042 $ 24,036 8,659 3,677 5,025 2,171 $ 25,170 8,863 3,499 5,092 2,089 Total (a) $ 44,321 $ 43,166 $ 42,935 $ 43,568 $ 44,713 June 30, 2012 Airline regions (In millions) Loans and leases December 31, 2011 March 31, 2012 September 30, 2011 June 30, 2011 U.S. Europe Pacific Basin Americas Other $ 13,992 10,789 7,830 5,083 6,627 $ 13,917 9,893 7,988 5,043 6,325 $ 13,760 9,665 7,945 5,072 6,493 $ 14,317 9,724 7,848 5,344 6,335 $ 14,311 9,910 8,399 5,635 6,458 Total (a) $ 44,321 $ 43,166 $ 42,935 $ 43,568 $ 44,713 June 30, 2012 Aircraft vintage profile (In millions) 0-5 years 6-10 years 11 - 15 years 15+ years $ 17,284 10,348 10,832 3,783 Total (b) $ 42,247 (a) Includes loans and financing leases of $12,046 million, $11,721 million, $11,901 million, $11,841 million, and $11,952 million (less non-aircraft loans and financing leases of of $112 million, $112million, $112 million, $119 million and $124 million) and ELTO of $32,387 million, $31,557 million, $31,146 million, $31,846 million, and $32,885 million at, June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, and June 30, 2011 respectively, related to commercial aircraft at GECAS. (b) Excludes aircraft engine loans and leases of $2,074 million at June 30, 2012. 27 GE Capital other key areas 28 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 At June 30, 2012 Gross Gross unrealized unrealized losses gains Amortized cost $ 20,994 3,436 2,440 3,060 5,269 2,592 1,792 3,412 $ 4,003 463 195 171 8 140 137 90 $ Estimated fair value (327) (130) (198) (180) (148) (168) (30) - $ At December 31, 2011 Gross Gross unrealized unrealized losses gains Amortized cost 24,670 3,769 2,437 3,051 5,129 2,564 1,899 3,502 $ 20,748 3,027 2,711 2,913 5,102 2,414 2,488 3,974 $ 3,432 350 184 162 32 126 129 84 $ Estimated fair value (410) (143) (286) (247) (164) (207) (86) - $ 23,770 3,234 2,609 2,828 4,970 2,333 2,531 4,058 Retained interests 28 3 - 31 25 10 - 35 Equity Available-for-sale Trading 502 260 98 - (6) - 594 260 713 241 75 - (38) - 750 241 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 $ $ 5,308 $ (1,187) $ 47,906 $ At June 30, 2012 - In loss position for Less than 12 months 12 months or more Gross Gross unrealized unrealized Estimated Estimated losses (b) losses (b) fair value fair value $ Retained interests Equity Total 43,785 $ 365 71 26 268 4,136 488 196 - $ (16) (1) (7) (27) (31) (1) - $ 1,121 233 752 1,057 792 571 171 - $ 44,356 $ 4,584 $ (1,581) $ 47,359 At December 31, 2011 - In loss position for Less than 12 months 12 months or more Gross Gross unrealized unrealized Estimated Estimated losses (b) losses (b) fair value fair value (311) (129) (198) (173) (121) (137) (29) - $ 1,435 87 219 244 100 330 906 502 $ (241) (1) (9) (23) (7) (28) (5) - $ 836 307 825 1,320 850 607 203 - $ (169) (142) (277) (224) (157) (179) (81) - 2 - - - - - - - 64 (5) 7 (1) 440 (38) - - 5,616 $ (88) $ 4,704 $ (1,099) $ 4,263 $ (352) $ 4,948 $ (1,229) (a) Substantially collateralized by U.S. mortgages. Of our total residential mortgage-backed securities (RMBS) portfolio at June 30, 2012,$1,626 million relates to securities issued by government sponsored entities and $811 million relates to securities of private label issuers.Securities issued by private label issuers are collateralized primarily by pools of individual direct mortgage loans of financial institutions. (b) Includes gross unrealized losses at June 30, 2012 of $(200) million related to securities that had other-than-temporary impairments previously recognized. 29 GE Capital - Investments measured at fair value in earnings (a) Asset balances at June 30, 2012 Investment type (In millions) Equities - trading $ Net earnings impact for six months ending June 30,2012 December 31, 2011 260 $ 241 $ 33 Assets held for sale (LOCOM) 4,556 4,525 (26) Assets of businesses held for sale (LOCOM) (b) 3,039 711 (5) 409 388 4 Other (Investment companies and loans) Total $ 8,264 $ 5,865 $ 6 (a) Excludes derivatives portfolio. (b) Includes $2.4 billion of financing receivables transferred to assets held for sale reflecting our commitment to sell a portion of the Business Property business in Real Estate 30 GE Capital - Ending Net Investment (ENI) June 30, 2012 (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, 2012 558.8 $ 573.4 $ 584.5 September 30, 2011 $ 603.1 June 30, 2011 $ 605.6 (1.5) (1.3) (1.7) (2.1) (7.0) (58.4) (60.1) (61.4) (65.3) (62.9) 498.9 $ (66.3) $ December 31, 2011 432.6 512.0 $ (76.2) $ 435.8 521.4 $ (76.7) $ 444.7 535.7 $ (83.3) $ 452.4 535.7 (78.0) $ 457.7 31 GE Capital - Net interest margin (a) For six months ending June 30, 2012 (In billions) For three months ending June 30, 2011 March 31, 2012 Interest income from Loans and Leases 6.0 % 6.0 % 6.0 % Yield Adjustors (Fees, Tax equivalency adjustment) (b) 0.8 % 0.7 % 0.8 % Investment Income (c) 0.2 % 0.1 % 0.2 % Operating Lease Income (net of depreciation) 1.4 % 1.3 % 1.4 % Total Interest Income 8.4 % 8.2 % 8.4 % Total Interest Expense (d) 3.5 % 3.8 % 3.6 % Net Interest Margin (e) 4.9 % 4.4 % 4.8 % Average Gross Financing Receivables $ Average Investment Securities (f) 287 $ 17 Average ELTO (net of depreciation) 312 $ 17 50 291 17 53 50 Average Earning Assets (AEA) (g) $ 354 $ 382 $ 358 Average Total Assets (f) $ 535 $ 560 $ 542 AEA / Average Total Assets 66 % 68 % 66 % (a) YTD net interest margin % annualized (annualized net interest margin $ = 1Q * 4, 2Q YTD * 2, 3Q YTD * 4/3, 4Q YTD * 1); average asset balances calculated using average of quarter end balances (1Q = 2-point average, 2Q = 3-point average, 3Q = 4-point average, 4Q = 5-point average). %s calculated based on average earning assets (AEA) total. (b) Excludes non-yield fees (c) Excludes legacy insurance business, income on cash, realized gains and losses on sale of investment securities (d) Includes total GECC interest expense (e) Excludes items in footnotes (b) and (c) and income from associated companies, Real Estate investment income, sale of goods, intercompany income with GE and other income (f) Excludes legacy insurance business (g) Excludes Real Estate Owned, investments in associated companies, cash, goodwill and other assets 32 GE Capital - Ratios (a) Leverage ratio (In billions) Debt Equity (b) June 30, 2012 $ 418.2 79.8 Leverage ratio Debt Less: hybrid debt Less: cash and equivalents Adjusted debt March 31, 2012 $ 5.2:1 $ 418.2 (7.7) (66.5) 344.0 December 31, 2011 432.1 79.2 $ 5.5:1 $ 432.1 (7.7) (76.4) 348.0 443.4 77.1 September 30, 2011 $ 458.4 76.0 5.7:1 $ 443.4 (7.7) (77.0) 358.7 June 30, 2011 $ 463.2 75.1 6.0:1 $ 458.4 (7.7) (83.6) 367.1 6.2:1 $ 463.2 (7.7) (78.1) 377.4 Equity (b) Add: hybrid debt Adjusted equity 79.8 7.7 87.6 79.2 7.7 86.9 77.1 7.7 84.8 76.0 7.7 83.7 75.1 7.7 82.8 Adjusted leverage ratio 3.9:1 4.0:1 4.2:1 4.4:1 4.6:1 Tangible common equity to tangible assets ratio (In billions) June 30, 2012 March 31, 2012 December 31, 2011 September 30, 2011 June 30, 2011 Total equity (b) Less: Preferred equity Less: Goodwill and other intangibles $ 79.8 (2.3) (28.5) $ 79.2 (28.8) $ 77.1 (28.8) $ 76.0 (29.4) $ 75.1 (30.0) Tangible common equity $ 49.1 $ 50.4 $ 48.3 $ 46.6 $ 45.1 Total assets Less: Goodwill and other intangibles $ 558.8 (28.5) $ 573.4 (28.8) $ 584.5 (28.8) $ 603.1 (29.4) $ 605.6 (30.0) Tangible assets $ 530.3 $ 544.6 $ 555.7 $ 573.7 $ 575.6 Tangible common equity to tangible assets Tier 1 common ratio (c) 9.3 % 9.3 % 8.7 % 8.1 % 7.8 % 10.1 % 10.4 % 9.9 % 9.6 % 9.1 % (a) Includes discontinued operations. (b) Excluding noncontrolling interests. (c) Based on Basel One RWA estimates. 33 GE Capital - Funding June 30, 2012 (In billions) March 31, 2012 December 31, 2011 September 30, 2011 June 30, 2011 Commercial paper Long-term debt (a) Deposits / CD's Alternate funding / other Non-recourse borrowings of consolidated securitization entities $ 43.1 278.5 41.9 23.8 30.7 $ 43.1 294.2 41.1 24.0 29.5 $ 44.2 302.8 43.1 23.7 29.3 $ 40.7 321.6 41.5 24.0 29.0 $ 40.7 326.5 41.5 25.4 29.1 Total debt $ 418.0 $ 431.9 $ 443.1 $ 456.8 $ 463.2 $ 48.8 $ 51.6 $ 52.4 $ 53.6 $ 53.7 Metrics Bank lines Commercial paper coverage (b): Bank lines Bank lines and cash and equivalents 113 % 267 % 120 % 297 % 119 % 292 % 132 % 336 % 132 % 323 % Cash and equivalents $ 66.3 $ 76.2 $ 76.7 $ 83.3 $ 78.0 LT debt < 1 year $ 67.1 $ 79.3 $ 82.7 $ 76.4 $ 72.9 (a) Includes $17 billion, $28 billion, $35 billion, $45 billion, and $45 billion of long term debt issued under the TLGP program at June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, and June 30, 2011, 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. 34 Appendix 35 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. 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, Statement of Financial Position and Statement of Cash Flows, respectively, 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 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. 36 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 interest margin A measure of the yield on interest earning assets relative to total interest expense. It is the amount of interest income less interest expense, divided by average interest earning assets. Net operating income Represents operating income less operating expenses for owned real estate properties. Other comprehensive income Changes in assets and liabilities that do not result from transactions with shareowners and are not included in net income but are recognized in a separate component of shareowners' equity. Other comprehensive income includes the following components: - Investment securities - unrealized gains and losses on securities classified as available for sale - Currency translation adjustments - the result of translating into U.S. dollars those amounts denominated or measured in a different currency - Cash flow hedges - the effective portion of the fair value of cash flow hedges. Such hedges relate to an exposure to variability in the cash flows of recognized assets, liabilities or forecasted transactions that are attributable to a specific risk - Benefit plans - unamortized prior service costs and net actuarial losses (gains) related to pension and retiree health and life benefits 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) An entity that must be consolidated by its primary beneficiary, the party that holds a controlling financial interest. 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) the power to direct the activities that most significantly affect the economic performance of the entity, (b) obligation to obasorb expected losses, or (c) right to receive expected residual returns. 37