GE Capital Fourth quarter 2014 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,” “will,” “would,” or “target.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about expected income; revenues; net interest margin; cost structure; restructuring charges; cash flows; assets; return on capital or assets; capital structure, including Tier 1 common ratio; and dividends. 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 interest and exchange rate volatility, 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 our funding, our exposure to counterparties and our ability to reduce asset levels as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; 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; our ability to pay dividends to GE at the planned level, which may be affected by our cash flows and earnings, financial services regulation and oversight, and other factors; the level of demand and financial performance of the major industries and customers GE serves; the effectiveness of our risk management framework; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation; adverse market conditions, timing of and ability to obtain required bank regulatory approvals, or other factors relating to GE or Synchrony Financial that could prevent GE from completing the Synchrony split-off as planned; our success in completing announced transactions; our success in integrating acquired businesses and operating joint ventures; the impact of potential information technology or data security breaches; and the other factors that are described in “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013. 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 forwardlooking statements. This document includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially. 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 recast for discontinued operations. Fourth quarter 2014 supplemental information Table of Contents 1. 2. 3. 4. 5. Page # GE Capital Structure a) GE Capital Structure 3 GE Capital Financial Statements a) Condensed Statement of Earnings b) Condensed Statement of Comprehensive Income c) Condensed Statement of Changes in Shareowners’ Equity d) Condensed Statement of Financial Position e) Continuing Operations 5 6 6 7 8 GE Capital Asset Quality a) Assets by Region b) Assets in Selected Emerging Markets c) Portfolio Overview and Ratios d) Consumer Allowance for Losses on Financing Receivables e) Consumer Financing Receivables by Region f) Consumer Mortgage Portfolio by Country g) Commercial Allowance for Losses on Financing Receivables h) Real Estate Allowance for Losses on Financing Receivables i) Commercial Real Estate Debt and Equity Overview j) Equipment Leased to Others Overview k) Commercial Aircraft Asset Details GE Capital Other Key Areas a) Investment Securities b) Investments measured at Fair Value in Earnings c) Net Interest Margin Appendix a) Glossary 10 11 12-18 19 20 21 22 23 24-25 26 27 29 30 31 33-34 GE Capital Structure General Electric Company General Electric Capital Corporation (GECC) Consumer - Private label 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 Energy Financial Services (EFS) Real Estate - Fixed/floating rate mortgages for commercial real estate - Equity capital for acquisitions or recapitalization of commercial real estate (3) - 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 Financial Statements (4) GE Capital – Condensed Statement of Earnings (In millions) Revenues Revenues from services Sales of goods Total revenues December 31, 2014 For the three months ended September 30, June 30, March 31, 2014 2014 2014 December 31, 2013 For the twelve months ended December 31, December 31, 2014 2013 $ $ $ $ 11,480 32 11,512 10,423 28 10,451 $ 10,213 34 10,247 $ 10,488 27 10,515 11,041 36 11,077 42,604 121 42,725 $ 43,941 126 44,067 Cost 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, 22-23) Depreciation and amortization Total cost and expenses 2,072 3,680 23 637 1,098 1,755 9,265 2,093 3,188 25 700 957 1,894 8,857 2,071 3,227 31 698 968 1,594 8,589 2,161 2,958 25 643 970 1,616 8,373 2,273 3,201 33 648 1,562 1,944 9,661 8,397 13,053 104 2,678 3,993 6,859 35,084 9,267 12,463 108 2,779 4,818 7,313 36,748 Earnings from continuing operations before income taxes Benefit (provision) for income taxes 2,247 (109) 1,594 (47) 1,658 216 2,142 (198) 1,416 1,092 7,641 (138) 7,319 992 Earnings from continuing operations Earnings (loss) from discontinued operations, net of taxes 2,138 (140) 1,547 57 1,874 (36) 1,944 12 2,508 (1,720) 7,503 (107) 8,311 (2,054) Net earnings Less: net earnings (loss) attributable to noncontrolling interests (a) 1,998 86 1,604 55 1,838 10 1,956 11 788 15 7,396 162 6,257 53 Net earnings attributable to GECC Preferred stock dividends declared (b) Net earnings attributable to GECC Common Shareowner 1,912 (161) 1,751 1,549 – 1,549 1,828 (161) 1,667 1,945 – 1,945 773 (163) 610 7,234 (322) 6,912 6,204 (298) 5,906 $ $ $ $ $ $ $ (a) Included $82 million and $132 million related to Synchrony Financial for the three months and twelve months ended December 31, 2014 and $50 million for the three months ended September 30, 2014. (b) Represents declared dividends on 40,000 shares of non-cumulative perpetual preferred stock issued during 2012 and 10,000 shares of non-cumulative perpetual preferred stock issued in 2013. Dividends on the GECC preferred stock are paid semi-annually, in June and December. (5) GE Capital – Condensed Statement of Comprehensive Income (In millions) Net earnings Less: net earnings (loss) attributable to noncontrolling interests Net earnings attributable to GECC Other comprehensive income (loss) Investment securities Currency translation adjustments Cash flow hedges Benefit plans Other comprehensive income (loss) Less: other comprehensive income (loss) attributable to noncontrolling interests Other comprehensive income (loss) attributable to GECC Comprehensive income Less: comprehensive income (loss) attributable to noncontrolling interests Comprehensive income attributable to GECC December 31, 2014 For the three months ended September 30, June 30, March 31, 2014 2014 2014 December 31, 2013 For the twelve months ended December 31, December 31, 2014 2013 $ 1,998 86 1,912 $ 1,604 55 1,549 $ 1,838 10 1,828 $ 1,956 11 1,945 $ 788 15 773 $ 7,396 162 7,234 $ 6,257 53 6,204 $ 180 185 90 (217) 238 $ (260) (546) 90 11 (705) $ 299 120 30 10 459 $ 484 (84) 68 (18) 450 $ 8 (448) 106 343 9 $ 703 (325) 278 (214) 442 $ (369) (563) 455 373 (104) $ (16) 254 (4) (701) $ 2,236 $ 70 2,166 $ 899 51 848 $ 3 456 $ 2,297 $ 13 2,284 2 448 $ 2,406 $ 13 2,393 – 9 $ 797 $ 15 782 (15) 457 $ 7,838 $ 147 7,691 (10) (94) 6,153 $ 43 6,110 GE Capital – Condensed Statement of Changes in Shareowners’ Equity (In millions) December 31, 2014 For the three months ended September 30, June 30, March 31, 2014 2014 2014 December 31, 2013 For the twelve months ended December 31, December 31, 2014 2013 GECC shareowners' equity balance at beginning of period $ $ $ $ Increases from net earnings attributable to GECC Dividends and other transactions with shareowners (a) Other comprehensive income (loss) attributable to GECC Changes in additional paid-in capital Ending balance 85,798 1,912 (940) 254 – $ Noncontrolling interests (b) Total equity balance at end of period 86,273 87,499 1,549 (805) (701) 432 $ 86,273 2,899 $ (a) Dividends to GE Dividends on preferred stock 90,398 $ 89,077 (779) (161) (805) – (b) Included $2,393 million related to the Synchrony Financial initial public offering. (6) $ 1,828 (1,077) 456 4 $ 2,804 $ 84,587 85,798 1,945 (500) 448 – $ 350 $ 86,148 (916) (161) 82,694 84,587 773 (2,201) 9 (1) $ 440 $ 85,027 (500) – 84,114 82,694 83,126 (2,038) (163) $ 7,234 (3,322) 457 436 $ 432 $ 82,694 87,499 6,204 (6,283) (94) 977 $ 2,899 $ 90,398 (3,000) (322) 81,890 82,694 432 $ 83,126 (5,985) (298) GE Capital – Condensed Statement of Financial Position December 31, 2014 (In millions) Assets Cash and equivalents Investment securities (see page 29) Inventories Financing receivables - net (see pages 10 - 24) Other receivables Property, plant & equipment, less accumulated amortization of $27,662, $27,236, $27,060, $27,023 and $26,960 Goodwill Other intangible assets - net Other assets Assets of businesses held for sale Assets of discontinued operations $ 74,292 47,827 50 237,018 16,683 September 30, 2014 $ 49,570 25,026 1,176 43,875 3,474 1,225 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 Total liabilities 79,863 46,701 57 237,405 15,273 June 30, 2014 $ 49,135 25,666 1,195 47,140 3,158 1,321 March 31, 2014 76,335 46,500 62 241,696 16,102 $ 50,704 26,047 1,285 46,073 3,294 1,470 December 31, 2013 75,289 45,450 62 247,242 15,643 $ 50,489 26,336 1,275 47,164 48 1,449 74,873 43,662 68 253,029 16,513 51,607 26,195 1,136 47,366 50 2,330 $ 500,216 $ 506,914 $ 509,568 $ 510,447 $ 516,829 $ 68,780 6,177 29,938 62,839 187,991 28,027 16,313 6,231 2,434 1,088 $ 68,676 7,182 30,231 60,815 198,735 27,991 16,593 5,696 914 1,004 $ 72,275 7,669 30,201 58,140 202,366 27,908 18,978 4,640 289 954 $ 75,102 7,740 28,724 54,743 206,654 27,604 18,773 4,956 2 1,122 $ 77,298 6,549 30,124 53,361 210,279 26,979 20,531 4,786 6 3,790 $ 409,818 $ 417,837 $ 423,420 $ 425,420 $ 433,703 Common stock Preferred stock Accumulated other comprehensive income - net Investment securities Currency translation adjustments Cash flow hedges Benefit plans Additional paid-in capital Retained earnings – – – – – – – – – – 1,010 (838) (172) (577) 32,999 55,077 830 (1,196) (105) (360) 32,999 54,105 1,092 (656) (195) (371) 32,567 53,361 793 (773) (225) (381) 32,563 52,610 309 (687) (293) (363) 32,563 51,165 Total GECC shareowners' equity 87,499 86,273 85,798 84,587 82,694 2,899 2,804 350 440 432 90,398 89,077 86,148 85,027 83,126 Noncontrolling interests Total equity Total liabilities and equity $ (7) 500,216 $ 506,914 $ 509,568 $ 510,447 $ 516,829 GE Capital – Continuing Operations (In millions) Revenues Interest expense Net revenues December 31, 2014 For the three months ended September 30, June 30, March 31, 2014 2014 2014 December 31, 2013 $ $ $ 11,512 (2,072) 9,440 10,451 (2,093) 8,358 $ 10,247 (2,071) 8,176 $ 10,515 (2,161) 8,354 11,077 (2,273) 8,804 For the twelve months ended December 31, December 31, 2014 2013 $ 42,725 (8,397) 34,328 $ 44,067 (9,267) 34,800 Cost and expenses Selling, general and administrative Depreciation and amortization Operating and other expenses Total costs and expenses 3,049 1,755 1,291 6,095 2,751 1,894 1,162 5,807 2,833 1,594 1,123 5,550 2,710 1,616 916 5,242 2,880 1,944 1,002 5,826 11,343 6,859 4,492 22,694 11,006 7,313 4,344 22,663 Earnings before income taxes and provisions for losses Provision for losses on financing receivables 3,345 (1,098) 2,551 (957) 2,626 (968) 3,112 (970) 2,978 (1,562) 11,634 (3,993) 12,137 (4,818) Earnings from continuing operations before income taxes Benefit (provision) for income taxes 2,247 (109) 1,594 (47) 1,658 216 2,142 (198) 1,416 1,092 7,641 (138) 7,319 992 Earnings from continuing operations Less: net earnings (loss) attributable to noncontrolling interests $ 2,138 86 $ 1,547 55 $ 1,874 10 $ 1,944 11 $ 2,508 15 $ 7,503 162 $ 8,311 53 Earnings from continuing operations attributable to GECC Less: Preferred stock dividends declared $ 2,052 (161) $ 1,492 – $ 1,864 (161) $ 1,933 – $ 2,493 (163) $ 7,341 (322) $ 8,258 (298) GE Capital segment profit (a) $ 1,891 $ 1,492 $ 1,703 $ 1,933 $ 2,330 $ 7,019 $ 7,960 (In millions) December 31, 2014 For the three months ended September 30, June 30, March 31, 2014 2014 2014 December 31, 2013 $ 549 1,137 299 111 218 2,314 (262) (161) $ 564 786 239 153 352 2,094 (161) – $ 1,891 $ 1,933 $ Segment profit CLL Consumer Real Estate EFS GECAS $ GE Capital corporate items and eliminations Preferred stock dividends declared GE Capital segment profit (a) $ $ 617 621 175 61 133 1,607 (115) – $ 1,492 $ $ 541 472 289 76 343 1,721 143 (161) $ 1,703 $ $ $ For the twelve months ended December 31, December 31, 2014 2013 263 2,057 128 117 71 2,636 (143) (163) $ 2,330 $ $ 2,271 3,016 1,002 401 1,046 7,736 (395) (322) $ 7,019 $ $ Effective in the second quarter of 2014, GE Capital segment results include the effects of the GECC preferred stock dividends. Previously, such dividends had been reported in the caption GE Corporate Items and Eliminations in GE’s Summary of Operating Segments table. Presenting GE Capital segment results including the effects of the GECC preferred stock dividends is consistent with the way management now measures the results of the financial services business. Prior-period segment information has been recast to be consistent with how management currently evaluates the performance of GE Capital. (8) 1,965 4,319 1,717 410 896 9,307 (1,049) (298) 7,960 GE Capital Asset Quality (9) GE Capital – Assets by Region (a) At Financing December 31, 2014 Property, plant and equipment (net) (In millions) receivables (net) U.S. (b) Europe (c) Western (including U.K.) (d) Eastern Pacific Basin Americas (excluding U.S.) Other (e) $ Total $ 237,018 $ 49,570 $ 498,991 Total at September 30, 2014 $ 237,405 $ 49,135 $ 505,593 Total at June 30, 2014 $ 241,696 $ 50,704 $ 508,098 Total at March 31, 2014 $ 247,242 $ 50,489 $ 508,998 Total at December 31, 2013 $ 253,029 $ 51,607 $ 514,499 134,727 $ 53,101 11,264 17,786 14,465 5,675 12,006 Total assets $ 3,442 109 2,161 1,251 30,601 315,501 $ 74,036 19,197 29,811 19,824 40,622 September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013 Total assets Total assets Total assets Total assets 311,130 $ 80,242 19,650 33,697 19,684 41,190 $ 505,593 301,627 $ 84,558 21,420 35,780 22,666 42,047 $ 508,098 298,580 $ 86,903 21,710 35,848 22,947 43,010 $ 508,998 300,420 88,264 22,230 35,410 24,508 43,667 $ 514,499 (a) Excludes assets of discontinued operations. (b) Total assets include our global Treasury operations, including both U.S. and non U.S. cash equivalents. (c) Total assets include non-financing assets (cash, goodwill and other intangible assets, property, plant and equipment and allowance for losses on financing receivables) of approximately $9,428 million at December 31, 2014. (d) During the second quarter of 2014, we committed to sell GE Money Bank AB, our consumer finance business in Sweden, Denmark and Norway (GEMB – Nordic) to Santander. The sale was subsequently completed in the fourth quarter of 2014. (e) Includes total assets of $39,607 million at GECAS, approximately $10,673 million of which relates to European airlines and other investments at December 31, 2014. (10) GE Capital – Assets in Selected Emerging Markets (a) At Financing (In millions) Eastern Europe Poland Czech Republic Hungary (b) Total Eastern Europe receivables (net) $ Americas Mexico Total Americas 6,539 4,724 – 11,263 December 31, 2014 Property, plant and equipment (net) $ 5,326 5,326 84 25 – 109 Total assets $ 765 765 9,404 6,398 3,385 19,187 $ 6,725 6,725 Total $ 16,589 $ 874 $ 25,912 Total at September 30, 2014 $ 18,644 $ 961 $ 26,293 Total at June 30, 2014 $ 19,496 $ 988 $ 28,023 Total at March 31, 2014 $ 20,089 $ 986 $ 28,243 Total at December 31, 2013 $ 20,349 $ 1,000 $ 28,926 September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013 Total assets Total assets Total assets Total assets 9,615 6,345 3,474 19,434 $ 6,859 6,859 $ 26,293 10,619 6,839 3,712 21,170 $ 6,853 6,853 $ 28,023 10,707 6,903 3,838 21,448 $ 6,795 6,795 $ 28,243 11,018 6,698 4,157 21,873 7,053 7,053 $ 28,926 (a) We have disclosed here selected emerging markets where our total assets at December 31, 2014 exceed $1 billion. Assets of discontinued operations are excluded. (b) During the fourth quarter of 2014, we committed to sell Budapest Bank, our consumer finance business in Hungary to a local government entity. Related financing receivables and property, plant and equipment balances have been reclassed to held for sale. (11) GE Capital – CLL Portfolio Overview (a) (In millions) Balances CLL (c) Americas International Total December 31, 2014 $ 67,096 43,407 $ 110,503 September 30, 2014 $ 66,871 43,268 $ 110,139 Financing receivables (b) June 30, 2014 $ 67,688 45,555 $ 113,243 CLL (c) Americas International Total December 31, 2014 $ 1,054 946 $ 2,000 September 30, 2014 $ 1,101 1,013 $ 2,114 Nonaccrual receivables June 30, 2014 $ 1,306 1,224 $ 2,530 CLL (c) Americas International Total December 31, 2014 $ 455 376 $ 831 September 30, 2014 $ 426 379 $ 805 Allowance for losses (d) June 30, 2014 $ 423 427 $ 850 CLL (c) Americas International Total (a) (b) (c) (d) (e) December 31, 2014 $ $ 81 40 121 $ $ $ $ $ $ March 31, 2014 68,367 46,208 114,575 December 31, 2013 $ 69,036 47,431 $ 116,467 March 31, 2014 1,239 1,415 2,654 December 31, 2013 $ 1,275 1,459 $ 2,734 March 31, 2014 December 31, 2013 $ 473 505 $ 978 419 449 868 Write-offs (net) - for three months ending (e) September 30, June 30, March 31, 2014 2014 2014 $ 53 $ 51 $ 137 63 72 76 $ 116 $ 123 $ 213 December 31, 2013 $ $ 83 102 185 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. Financing receivables include impaired loans of $2,698 million at December 31, 2014. During the first quarter of 2014, we combined our CLL Europe and CLL Asia portfolios into CLL International, and we transferred our CLL Other portfolio to the CLL Americas portfolio. Prior-period amounts were reclassified to conform to the current period presentation. For information on the determination of the allowance for losses on financing receivables, refer to Note 1 of the financial statements of General Electric Capital Corporation Form 10-K for the annual period ended December 31, 2013. Write-offs to net realizable value are recognized against the allowance for losses primarily in the reporting period in which management has deemed all or a portion of the financing receivable to be uncollectible, but not later than 360 days after initial recognition of a specific reserve for a collateral dependent loan. In accordance with regulatory standards that are applicable in Italy, commercial loans are considered uncollectible when there is demonstrable evidence of the debtor’s insolvency, which may result in write-offs occurring beyond 360 days after initial recognition of a specific reserve. (12) GE Capital – CLL Portfolio Overview Ratios CLL (a) Americas International Total December 31, 2014 1.57 2.18 1.81 CLL (a) Americas International Total December 31, 2014 0.68 0.87 0.75 CLL (a) Americas International Total December 31, 2014 0.48 0.37 0.44 Delinquency Allowance for losses as a percent of nonaccrual receivables December 31, 2014 1.80 41.55 (a) (b) (c) (d) Nonaccrual receivables as a percent of financing receivables September 30, June 30, March 31, 2014 2014 2014 1.65 % 1.93 % 1.81 2.34 2.69 3.06 1.92 2.23 2.32 % Allowance for losses as a percent of total financing receivables (b) September 30, June 30, March 31, 2014 2014 2014 0.64 % 0.62 % 0.61 0.88 0.94 0.97 0.73 0.75 0.76 % Write-offs (net) as a percent of financing receivables (c)(d) September 30, June 30, March 31, 2014 2014 2014 0.32 % 0.30 % 0.80 0.57 0.63 0.65 0.42 0.43 0.74 % September 30, 2014 1.96 38.08 % CLL June 30, 2014 % 1.94 33.60 % March 31, 2014 2.14 32.71 % December 31, 2013 1.85 3.08 2.35 % % December 31, 2013 0.69 1.06 0.84 % % December 31, 2013 0.48 0.88 0.64 % % December 31, 2013 1.93 35.77 During the first quarter of 2014, we combined our CLL Europe and CLL Asia portfolios into CLL International, and we transferred our CLL Other portfolio to the CLL Americas portfolio. Prior-period amounts were reclassified to conform to the current period presentation. For information on the determination of the allowance for losses on financing receivables, refer to Note 1 of the financial statements of General Electric Capital Corporation Form 10-K for the annual period ended December 31, 2013. 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. Write-offs to net realizable value are recognized against the allowance for losses primarily in the reporting period in which management has deemed all or a portion of the financing receivable to be uncollectible, but not later than 360 days after initial recognition of a specific reserve for a collateral dependent loan. In accordance with regulatory standards that are applicable in Italy, commercial loans are considered uncollectible when there is demonstrable evidence of the debtor’s insolvency, which may result in write-offs occurring beyond 360 days after initial recognition of a specific reserve. (13) % GE Capital – EFS, GECAS and Commercial Other Portfolio Overview (In millions) Balances December 31, 2014 EFS GECAS Other $ 2,580 8,263 130 December 31, 2014 EFS GECAS Other $ 68 419 – December 31, 2014 EFS GECAS Other $ 26 46 – December 31, 2014 EFS GECAS Other (a) (b) $ (4) (1) – September 30, 2014 $ 2,798 8,449 134 September 30, 2014 $ 57 153 – September 30, 2014 $ 6 15 – Financing receivables (a) June 30, 2014 $ 2,776 8,440 138 March 31, 2014 $ Nonaccrual receivables June 30, 2014 $ 76 153 – 21 21 – 2,753 8,851 139 March 31, 2014 $ Allowance for losses (b) June 30, 2014 $ December 31, 2013 March 31, 2014 15 4 – $ (1) 7 – $ $ 4 – 6 December 31, 2013 16 25 – Write-offs (net) - for three months ending September 30, June 30, March 31, 2014 2014 2014 $ 3,107 9,377 318 December 31, 2013 43 275 – $ $ $ 8 17 2 December 31, 2013 1 – – $ – – – Financing receivables include $68 million, $329 million, and $0 million of impaired loans at EFS, GECAS, and Other, respectively, at December 31, 2014. For information on the determination of the allowance for losses on financing receivables, refer to Note 1 of the financial statements of General Electric Capital Corporation Form 10-K for the annual period ended December 31, 2013. (14) GE Capital – EFS, GECAS and Commercial Other Portfolio Overview Ratios EFS GECAS Other December 31, 2014 2.64 % 5.07 – Nonaccrual receivables as a percent of financing receivables September 30, June 30, March 31, 2014 2014 2014 2.04 % 2.74 % 1.56 % 1.81 1.81 3.11 – – – December 31, 2013 0.13 % – 1.89 EFS GECAS Other December 31, 2014 1.01 % 0.56 – Allowance for losses as a percent of total financing receivables (a) September 30, June 30, March 31, 2014 2014 2014 0.21 % 0.76 % 0.58 % 0.18 0.25 0.28 – – – December 31, 2013 0.26 % 0.18 0.63 EFS GECAS Other December 31, 2014 (0.60)% (0.05) – Write-offs (net) as a percent of financing receivables (b) September 30, June 30, March 31, 2014 2014 2014 2.15 % (0.14)% 0.14 % 0.19 0.32 – – – – (a) (b) December 31, 2013 –% – – For information on the determination of the allowance for losses on financing receivables, refer to Note 1 of the financial statements of General Electric Capital Corporation Form 10-K for the annual period ended December 31, 2013. 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 – Real Estate Portfolio Overview (In millions, unless otherwise noted) Balances Financing receivables (a) $ December 31, September 30, June 30, March 31, December 31, 2014 2014 2014 2014 2013 19,797 $ 19,799 $ 19,799 $ 20,236 $ 19,899 Nonaccrual receivables 1,254 1,628 1,948 2,383 2,551 Allowance for losses (b) 161 154 162 175 192 (2) 19 (77) 4 28 Write-offs (net) - for three months ending Ratios December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013 Nonaccrual receivables as a percent of financing receivables 6.33 % 8.22 % 9.84 % Allowance for losses as a percent of total financing receivables (b) 0.81 0.78 0.82 0.86 0.96 (0.04) 0.38 (1.54) 0.08 0.58 1.22 1.43 1.49 1.30 1.24 12.84 9.46 8.32 7.34 7.53 Write-offs (net) as a percent of financing receivables (c) Delinquency Allowance for losses as a percent of nonaccrual receivables (b) (a) (b) (c) 11.78 % Financing receivables include $1,872 million of impaired loans at December 31, 2014. For information on the determination of the allowance for losses on financing receivables, refer to Note 1 of the financial statements of General Electric Capital Corporation Form 10-K for the annual period ended December 31, 2013. 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) 12.82 % GE Capital – Consumer Portfolio Overview (In millions) Balances Consumer Non-U.S. residential mortgages Non-U.S. installment and revolving credit (b) U.S. installment and revolving credit Other Total December 31, 2014 $ 24,893 10,400 59,863 5,664 $ 100,820 September 30, 2014 $ 27,674 11,686 55,258 6,638 $ 101,256 Financing receivables (a) June 30, 2014 $ 29,594 12,545 53,365 6,951 $ 102,455 Consumer Non-U.S. residential mortgages Non-U.S. installment and revolving credit (b) U.S. installment and revolving credit Other Total December 31, 2014 $ 1,262 53 2 167 $ 1,484 September 30, 2014 $ 1,960 69 2 218 $ 2,249 Nonaccrual receivables June 30, 2014 $ 2,082 67 1 269 $ 2,419 Consumer Non-U.S. residential mortgages Non-U.S. installment and revolving credit (b) U.S. installment and revolving credit Other Total December 31, 2014 $ 325 399 3,186 101 $ 4,011 September 30, 2014 $ 439 592 3,053 106 $ 4,190 Allowance for losses (c) June 30, 2014 $ 411 610 2,953 127 $ 4,101 Consumer Non-U.S. residential mortgages Non-U.S. installment and revolving credit (b) U.S. installment and revolving credit Other Total (a) (b) (c) December 31, 2014 $ $ 31 55 654 15 755 March 31, 2014 30,355 15,672 52,887 6,918 105,832 December 31, 2013 $ 30,501 15,731 55,854 6,953 $ 109,039 March 31, 2014 2,140 89 2 335 2,566 December 31, 2013 $ 2,161 106 2 351 $ 2,620 March 31, 2014 336 649 2,947 128 4,060 December 31, 2013 $ 358 650 2,823 150 $ 3,981 Write-offs (net) - for three months ending September 30, June 30, March 31, 2014 2014 2014 $ 42 $ 28 $ 37 83 97 94 569 662 646 23 27 26 $ 717 $ 814 $ 803 December 31, 2013 $ 224 228 705 70 $ 1,227 $ $ $ $ $ $ Financing receivables include impaired loans of $2,180 million at December 31, 2014. During the fourth quarter of 2014, we combined our Consumer Non-U.S. auto portfolio into our Consumer Non-U.S. installment and revolving credit portfolio. Prior period amounts were reclassified to conform to the current period presentation. For information on the determination of the allowance for losses on financing receivables, refer to Note 1 of the financial statements of General Electric Capital Corporation Form 10-K for the annual period ended December 31, 2013. (17) GE Capital – Consumer Portfolio Overview Ratios Consumer Non-U.S. residential mortgages Non-U.S. installment and revolving credit (a) U.S. installment and revolving credit Other Total December 31, 2014 5.07 0.51 – 2.95 1.47 Consumer Non-U.S. residential mortgages Non-U.S. installment and revolving credit (a) U.S. installment and revolving credit Other Total December 31, 2014 1.31 3.84 5.32 1.78 3.98 Consumer Non-U.S. residential mortgages Non-U.S. installment and revolving credit (a) U.S. installment and revolving credit Other Total December 31, 2014 0.47 1.99 4.54 0.98 2.99 Delinquency Allowance for losses as a percent of nonaccrual receivables December 31, 2014 5.10 270.28 (a) (b) (c) % Nonaccrual receivables as a percent of financing receivables September 30, June 30, March 31, 2014 2014 2014 7.08 % 7.04 % 7.05 0.59 0.53 0.57 – – – 3.28 3.87 4.84 2.22 2.36 2.42 % Allowance for losses as a percent of total financing receivables (b) September 30, June 30, March 31, 2014 2014 2014 1.59 % 1.39 % 1.11 5.07 4.86 4.14 5.52 5.53 5.57 1.60 1.83 1.85 4.14 4.00 3.84 % Write-offs (net) as a percent of financing receivables (c) September 30, June 30, March 31, 2014 2014 2014 0.59 % 0.37 % 0.49 2.74 2.75 2.39 4.19 4.98 4.75 1.35 1.56 1.50 2.82 3.13 2.99 September 30, 2014 5.87 186.31 % % Consumer June 30, 2014 5.84 169.53 % March 31, 2014 5.75 158.22 % % % % December 31, 2013 7.09 0.67 – 5.05 2.40 December 31, 2013 1.17 4.13 5.05 2.16 3.65 December 31, 2013 2.91 5.09 5.24 3.89 4.47 December 31, 2013 6.07 151.95 During the fourth quarter of 2014, we combined our Consumer Non-U.S. auto portfolio into our Consumer Non-U.S. installment and revolving credit portfolio. Prior period amounts were reclassified to conform to the current period presentation. For information on the determination of the allowance for losses on financing receivables, refer to Note 1 of the financial statements of General Electric Capital Corporation Form 10-K for the annual period ended December 31, 2013. 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 – Consumer Allowance for Losses on Financing Receivables Balance January 1, 2014 (In millions) Consumer Non-U.S. residential mortgages Non-U.S. installment and revolving credit (c) U.S. installment and revolving credit Other Total Consumer Total Consumer Gross write-offs (b) Other (a) Recoveries (b) Balance December 31, 2014 $ 358 650 2,823 150 $ 256 338 2,875 75 $ (151) (260) 19 (33) $ (207) (787) (3,138) (151) $ 69 458 607 60 $ 325 399 3,186 101 $ 3,981 $ 3,544 $ (425) $ (4,283) $ 1,194 $ 4,011 Balance January 1, 2013 (In millions) Consumer Non-U.S. residential mortgages Non-U.S. installment and revolving credit (c) U.S. installment and revolving credit Other Provision charged to operations Provision charged to operations Gross write-offs (b) Other (a) Recoveries (b) Balance December 31, 2013 $ 480 649 2,282 172 $ 269 647 3,006 127 $ 10 (106) (51) 11 $ (458) (1,093) (2,954) (236) $ 57 553 540 76 $ 358 650 2,823 150 $ 3,583 $ 4,049 $ (136) $ (4,741) $ 1,226 $ 3,981 (a) Other primarily included the reclass of Budapest Bank and GEMB-Nordic to held for sale and the effects of currency exchange in 2014, and primarily included dispositions and the effects of currency exchange in 2013. GEMB-Nordic was subsequently sold in the fourth quarter of 2014. (b) Net write-offs (gross write-offs less recoveries) in certain portfolios may exceed the beginning allowance for losses as a result of 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. (c) During the fourth quarter of 2014, we combined our Consumer Non-U.S. auto portfolio into our Consumer Non-U.S. installment and revolving credit portfolio. Prior period amounts were reclassified to conform to the current period presentation. (19) GE Capital – Consumer Financing Receivables by Region (In millions) December 31, 2014 U.S. Europe Western Eastern Pacific Basin Americas Total at December 31, 2014 $ Total at June 30, 2014 $ Total at December 31, 2013 24,893 $ $ - 29,594 $ $ $ 53,365 $ 65,910 - $ 30,501 55,854 $ 71,585 5,664 1,409 $ 6,951 $ 1,301 $ 6,953 54,774 26,161 14,578 6,845 97 $ 102,455 September 30, 2014 U.S. Europe Western Eastern Pacific Basin Americas Total at September 30, 2014 $ Total at March 31, 2014 - $ 21,587 5,984 103 $ March 31, 2014 U.S. Europe Western Eastern Pacific Basin Americas Installment and revolving credit (a) Mortgages 27,674 - 30,355 1,413 1,785 3,530 6,285 86 $ $ 23,612 6,624 119 – $ $ 66,944 52,887 $ 6,638 68,559 $ $ $ 57,155 109,039 (a) During the fourth quarter of 2014, we combined our Consumer Non-U.S. auto portfolio into our Consumer Non-U.S. installment and revolving credit portfolio. Prior period amounts were reclassified to conform to the current period presentation. (b) Represents mainly small and medium enterprise loans. (20) 1,305 6,918 56,671 24,329 13,743 6,417 96 $ 101,256 Total $ 1,066 4,485 54 8 29,906 15,220 6,659 99 $ $ Other (b) 5,125 3,929 6,534 84 $ Total 957 4,229 29 10 Installment and revolving credit (a) Mortgages $ 55,258 Other (b) Total 994 4,589 61 8 $ 100,820 Total Other (b) $ 61,196 22,201 11,419 5,913 91 1,059 4,424 48 11 5,148 4,017 6,475 91 $ $ Other (b) 1,977 3,800 6,682 86 23,764 6,614 123 – $ 70,263 1,333 Total 816 3,485 21 9 Installment and revolving credit (a) Mortgages $ $ 1,645 2,869 5,804 82 23,125 6,354 115 – $ 59,863 Other (b) Installment and revolving credit (a) Mortgages December 31, 2013 U.S. Europe Western Eastern Pacific Basin Americas 19,740 5,065 88 - June 30, 2014 U.S. Europe Western Eastern Pacific Basin Americas Installment and revolving credit (a) Mortgages 54,192 29,803 15,038 6,707 92 $ 105,832 GE Capital – Consumer Mortgage Portfolio by Country (a) ($ in millions) Financing receivables December 31, 2014 U.K. (b) (c) France (c) Poland Czech Republic Hungary (d) Spain All other Total at December 31, 2014 (e) $ $ Financing receivables June 30, 2014 U.K. France Poland Czech Republic Hungary Spain All other Total at June 30, 2014 $ $ (a) (b) (c) (d) (e) 14,953 7,252 4,782 853 719 692 343 29,594 Financing receivables December 31, 2013 U.K. France Poland Czech Republic Hungary Spain All other Total at December 31, 2013 12,635 6,345 4,305 760 – 594 254 24,893 $ $ 15,026 7,682 4,998 879 737 746 433 30,501 As a % of total 50.76 % 25.49 17.29 3.05 2.39 1.02 100.00 % As a % of total 50.53 % 24.50 16.16 2.88 2.43 2.34 1.16 100.00 % As a % of total 49.26 % 25.19 16.39 2.88 2.42 2.45 1.42 100.00 % Nonaccrual receivables 6.54 % 4.96 1.30 2.55 5.54 4.05 5.06 % Nonaccrual receivables 9.91 % 4.37 1.28 2.66 19.19 6.33 5.53 7.04 % Nonaccrual receivables 10.16 % 4.04 1.27 2.74 18.96 8.65 7.78 7.09 % Delinquent more than 30 days 12.76 % 5.06 2.39 3.24 14.58 9.16 8.72 % Delinquent more than 30 days 16.85 % 4.83 2.34 3.14 21.31 16.00 8.81 11.16 % Financing receivables September 30, 2014 U.K. France Poland Czech Republic Hungary Spain All other Total at September 30, 2014 $ $ Financing receivables March 31, 2014 U.K. France Poland Czech Republic Hungary Spain All other Total at March 31, 2014 13,963 6,767 4,529 803 652 646 314 27,674 $ $ 14,991 7,587 4,996 885 743 732 421 30,355 As a % of total 50.46 % 24.45 16.37 2.90 2.36 2.33 1.13 100.00 % As a % of total 49.39 % 24.99 16.46 2.92 2.45 2.41 1.39 100.00 % Nonaccrual receivables 9.94 % 4.85 1.31 2.76 16.54 6.17 4.46 7.08 % Nonaccrual receivables 10.02 % 4.14 1.30 2.82 19.52 7.70 7.73 7.05 % Delinquent more than 30 days 16.64 % 5.05 2.38 3.10 18.60 15.40 8.13 11.00 % Delinquent more than 30 days 15.27 % 4.66 2.32 3.49 21.80 17.36 12.13 10.31 % Delinquent more than 30 days 17.20 % 4.26 2.34 3.35 21.45 18.85 11.58 11.17 % 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 180 days past due. At December 31, 2014, we had in repossession stock 142 houses in the U.K., which had a value of less than $0.1 billion. Our U.K. and France portfolios have reindexed loan-to-value ratios of 70% and 55%, respectively. During the fourth quarter of 2014, we committed to sell Budapest Bank to a local government entity. The related financing receivables have been reclassed to held for sale accordingly. At December 31, 2014, net of credit insurance, about 43% 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 repayments that are less than the repayments for fully amortizing loans; or whose terms resulted in negative amortization. At origination, we underwrite loans with an adjustable rate to the reset value. About 85% of these loans are in our U.K. and France portfolios, which comprise mainly loans whose terms permitted repayments that are less than the repayments for fully amortizing loans, high loan-to-value ratios at inception and introductory below market rates, have a delinquency rate of 10% and have a loan-to-value ratio at origination of 82%. At December 31, 2014, 13% (based on dollar values) of these loans in our U.K. and France portfolios have been restructured. (21) GE Capital – Commercial Allowance for Losses on Financing Receivables Balance January 1, 2014 (In millions) CLL (c) Americas International $ Provision charged to operations 473 505 EFS $ Gross write-offs (b) Other (a) 307 159 $ (3) (37) $ Balance December 31, 2014 Recoveries (b) (422) (351) $ 100 100 $ 455 376 8 30 (1) (17) 6 26 GECAS 17 39 – (10) – 46 Other 2 – (2) – – – Total Commercial $ $ Balance January 1, 2013 (In millions) CLL (c) Americas International 1,005 $ 535 $ Provision charged to operations 496 525 $ (43) $ $ $ Gross write-offs (b) Other (a) 289 445 (800) (1) 1 $ 206 $ 903 Balance December 31, 2013 Recoveries (b) (425) (556) $ 114 90 $ 473 505 EFS 9 (1) – – – 8 GECAS 8 9 – – – 17 Other 3 (1) – (2) 2 2 Total Commercial $ 1,041 $ 741 $ – $ (983) $ 206 $ 1,005 (a) Other primarily included the effects of currency exchange. (b) Net write-offs (gross write-offs less recoveries) in certain portfolios may exceed the beginning allowance for losses as a result of 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. (c) During the first quarter of 2014, we combined our CLL Europe and CLL Asia portfolios into CLL International, and we transferred our CLL Other portfolio to the CLL Americas portfolio. Prior-period amounts were reclassified to conform to the current period presentation. (22) GE Capital – Real Estate Allowance for Losses on Financing Receivables Balance January 1, 2014 (In millions) Allowance for losses on financing receivables $ (a) $ Balance January 1, 2013 (In millions) Allowance for losses on financing receivables 192 Provision charged to operations $ 320 Other (a) (86) $ Provision charged to operations $ Gross write-offs (1) $ 28 $ Other primarily included the effects of currency exchange. (23) Recoveries (59) $ Gross write-offs Other (a) (4) $ Balance December 31, 2014 (163) 115 161 Balance December 31, 2013 Recoveries $ $ 11 $ 192 GE Capital – Real Estate Debt Overview (In millions) December 31, 2014 Region September 30, 2014 Financing receivables June 30, 2014 March 31, 2014 December 31, 2013 U.S. Europe Pacific Basin Americas $ 8,814 3,950 1,215 5,818 $ 8,309 4,676 1,097 5,717 $ 8,073 4,672 1,138 5,916 $ 8,769 4,911 1,302 5,254 $ 8,592 5,050 1,162 5,095 Total (a) $ 19,797 $ 19,799 $ 19,799 $ 20,236 $ 19,899 December 31, 2014 Property type September 30, 2014 Financing receivables June 30, 2014 March 31, 2014 December 31, 2013 Office buildings Apartment buildings Warehouse properties Retail facilities Hotel properties Mixed use Owner occupied Other $ 6,149 3,484 3,086 2,595 1,917 910 748 908 $ 6,182 3,321 2,420 2,932 1,931 895 823 1,295 $ 5,996 3,497 2,407 3,056 1,731 1,002 936 1,174 $ 5,943 3,386 2,676 2,931 2,155 948 996 1,201 $ 5,897 3,192 2,569 2,812 2,244 954 911 1,320 Total (a) $ 19,797 $ 19,799 $ 19,799 $ 20,236 $ 19,899 December 31, 2014 Vintage profile Originated in pre-2011 2011 2012 2013 2014 Total $ 6,264 214 1,745 4,390 7,184 $ 19,797 December 31, 2014 Contractual maturities Due in 2014 and prior (b) 2015 2016 2017 2018 and later Total (a) Represents total gross financing receivables for Real Estate only. (b) Includes $92 million relating to loans with contractual maturities on or prior to December 31, 2014. (24) $ 331 2,533 5,019 5,712 6,202 $ 19,797 GE Capital – Real Estate Equity Overview (a) ($ in millions) December 31, 2014 Region U.S. Europe Pacific Basin Americas Total $ $ $ $ Owned real estate (b) $ Net operating income (annualized) Net operating income yield (c) $ End of period vacancies (d) (a) (b) (c) (d) (e) 8,220 529 5.6 % $ 689 $ $ $ 6,800 1,117 783 640 244 1,666 195 371 11,816 $ $ $ September 30, 2014 $ $ 10,724 585 5.3 % 798 3,811 5,101 3,750 104 12,766 $ $ $ 7,305 1,180 873 709 271 1,835 195 398 12,766 $ $ $ $ $ March 31, 2014 11,592 612 5.2 % $ $ 988 $ Includes real estate investments related to Real Estate only. Excludes foreclosed properties. Excludes joint ventures, equity investment securities, and foreclosed properties. Net operating income yield is calculated as annualized net operating income for the relevant quarter as a percentage of the average owned real estate. Excludes hotel properties, apartment buildings and parking facilities. Excludes foreclosed properties related to loans acquired at a discount with an expectation to foreclose. 7,723 1,297 1,400 754 276 1,865 238 479 14,032 December 31, 2013 11,943 667 5.4 % $ $ 19.7 % 8,878 18 53 78 99 9,126 (25) $ 4,592 5,560 3,690 190 14,032 December 31, 2013 7,536 1,233 928 778 277 1,844 237 426 13,259 December 31, 2014 $ $ March 31, 2014 19.7 % $ December 31, 2013 3,937 5,335 3,813 174 13,259 $ June 30, 2014 20.3 % $ March 31, 2014 Equity June 30, 2014 September 30, 2014 20.7 % Vintage profile Originated in pre-2011 2011 2012 2013 2014 Total 6,004 928 724 501 218 205 193 353 9,126 3,808 4,391 3,539 78 11,816 $ December 31, 2014 Key metrics Foreclosed properties (e) $ December 31, 2014 Property type Office buildings Retail facilities Warehouse properties Mixed use Hotel properties Apartment buildings Owner occupied Other Total 3,403 3,985 1,683 55 9,126 Equity June 30, 2014 September 30, 2014 981 12,588 723 5.3 % 17.6 % $ 994 GE Capital – Equipment Leased to Others (ELTO), Net of Depreciation and Amortization Overview (In millions) December 31, 2014 Collateral type CLL Aircraft Vehicles Railroad rolling stock Construction and manufacturing All other $ 2,222 $ 8,144 2,998 2,321 1,867 Total at December 31, 2014 $ 17,552 $ June 30, 2014 Collateral type CLL Aircraft Vehicles Railroad rolling stock Construction and manufacturing All other $ 2,364 $ 8,579 3,043 2,184 1,825 Total at June 30, 2014 $ 17,995 $ December 31, 2013 Collateral type CLL Aircraft Vehicles Railroad rolling stock Construction and manufacturing All other $ 2,623 $ 8,312 3,129 1,955 1,736 Total at December 31, 2013 $ 17,755 $ GECAS 30,573 – – – – EFS $ – – – – 493 30,573 $ GECAS 31,189 – – – – $ GECAS 32,315 $ September 30, 2014 Collateral type CLL – – – – – $ 32,795 8,144 2,998 2,321 2,360 Aircraft Vehicles Railroad rolling stock Construction and manufacturing All other $ 493 $ – $ 48,618 Total at September 30, 2014 $ Consumer – – – – 503 Total March 31, 2014 Collateral type 2,286 8,350 2,977 2,354 1,718 GECAS EFS Consumer Total $ 29,961 $ – – – – – – – – 498 $ – – – – – $ 32,247 8,350 2,977 2,354 2,216 17,685 $ 29,961 $ 498 $ – $ 48,144 CLL GECAS EFS Consumer Total $ – – – – – $ 33,553 8,579 3,043 2,184 2,328 Aircraft Vehicles Railroad rolling stock Construction and manufacturing All other $ 2,490 8,492 3,045 2,108 1,732 $ 31,101 $ – – – – – – – – 505 $ – – – – – $ 33,591 8,492 3,045 2,108 2,237 503 $ – $ 49,687 Total at March 31, 2014 $ 17,867 $ 31,101 $ 505 $ – $ 49,473 EFS $ Total $ EFS 31,189 $ 32,315 – – – – Consumer Consumer – – – – 509 Total $ – – – – 3 $ 34,938 8,312 3,129 1,955 2,248 509 $ 3 $ 50,582 (26) GE Capital – Commercial Aircraft Asset Details December 31, 2014 Collateral type (in millions) September 30, 2014 Loans and leases June 30, 2014 March 31, 2014 December 31, 2013 Narrow-body aircraft Wide-body aircraft Cargo Regional jets Engines $ 23,204 7,266 1,863 4,021 2,377 $ 22,816 7,247 1,941 4,106 2,201 $ 23,492 7,645 1,997 4,271 2,123 $ 23,877 7,466 2,064 4,343 2,093 $ 24,875 7,850 2,411 4,469 1,975 Total (a) $ 38,731 $ 38,311 $ 39,528 $ 39,843 $ 41,580 December 31, 2014 Airline regions (in millions) September 30, 2014 Loans and leases June 30, 2014 March 31, 2014 December 31, 2013 U.S. Europe Pacific Basin Americas Other $ 10,183 9,809 8,063 4,361 6,315 $ 10,135 9,792 7,743 4,470 6,171 $ 10,509 9,874 7,910 4,581 6,654 $ 11,147 9,847 7,604 4,638 6,607 $ 11,545 10,067 7,882 5,147 6,939 Total (a) $ 38,731 $ 38,311 $ 39,528 $ 39,843 $ 41,580 GECAS-owned aircraft vintage profile (in millions) December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013 0 - 5 years 6 - 10 years 11 - 15 years 15+ years $ 13,833 8,483 7,682 1,615 $ 13,294 8,864 7,562 1,526 $ 14,296 8,978 7,812 1,557 $ 14,245 9,299 7,647 1,582 $ 15,421 9,802 7,553 1,629 Total (b) $ 31,613 $ 31,246 $ 32,643 $ 32,773 $ 34,405 (a) Includes loans and financing leases of $8,263 million, $8,449 million, $8,440 million, $8,851 million and $9,377 million (less non-aircraft loans and financing leases of $105 million, $99 million, $101 million, $109 million and $112 million) and ELTO of $30,573 million, $29,961 million, $31,189 million, $31,101 million and $32,315 million at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013 respectively, related to commercial aircraft at GECAS. (b) Includes aircraft owned by GECAS and leased to others; excludes engines and loans. (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 December 31, 2014 Gross Gross unrealized unrealized gains losses Amortized cost $ 19,889 5,181 1,578 2,903 8,084 1,380 1,646 1,957 $ 3,967 624 153 170 9 126 152 56 $ Estimated fair value (69) (56) (6) (10) (175) (30) (2) – $ December 31, 2013 Gross Gross unrealized unrealized gains losses Amortized cost 23,787 5,749 1,725 3,063 7,918 1,476 1,796 2,013 $ 19,600 4,245 1,819 2,929 7,373 1,741 2,336 752 $ 2,323 235 139 188 60 103 81 45 $ Estimated fair value (217) (191) (48) (82) (46) (86) (7) (27) $ 21,706 4,289 1,910 3,035 7,387 1,758 2,410 770 Retained interests 20 4 – 24 64 8 – 72 Equity Available-for-sale Trading 197 22 58 – (1) – 254 22 203 74 51 – (3) – 251 74 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 $ 5,319 $ (349) $ 47,827 $ December 31, 2014 - in loss position for Less than 12 months 12 months or more Gross Gross Estimated unrealized Estimated unrealized fair value losses (b) fair value losses (b) $ Retained interests Equity Total 42,857 $ 554 81 30 165 7,493 42 677 705 $ (16) (1) – (1) (158) (1) (2) – $ 836 348 159 204 77 237 14 1 $ 41,136 $ 3,233 $ (707) $ 43,662 December 31, 2013 - in loss position for Less than 12 months 12 months or more Gross Gross Estimated unrealized Estimated unrealized fair value losses (b) fair value losses (b) (53) (55) (6) (9) (17) (29) – – $ 2,170 1,076 232 396 112 96 1,479 229 $ (122) (82) (11) (24) (2) (3) (6) (27) $ 598 367 430 780 359 454 42 254 $ (95) (109) (37) (58) (44) (83) (1) – – – – – 2 – – – 14 (1) – – 31 (3) – – 9,761 $ (180) $ 1,876 $ (169) $ 5,823 $ (280) $ 3,284 $ (427) (a) Substantially collateralized by U.S. mortgages. At December 31, 2014, $1,191 million relates to securities issued by government-sponsored entities and $534 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 related to securities that had other-than-temporary impairments previously recognized of $(29) million and $(99) million at December 31, 2014 and December 31, 2013, respectively. (29) GE Capital – Investments Measured at Fair Value in Earnings (a) Asset balances at December 31, 2014 Investment type (in millions) Earnings impact for the twelve months ended December 31, 2014 (b) December 31, 2013 Equities - trading Assets held for sale (LOCOM) Assets of businesses held for sale (LOCOM) (c) Other (d) $ 22 5,549 3,474 48 $ 74 2,571 50 293 $ (4) (52) (15) 1 Total $ 9,093 $ 2,988 $ (70) (a) Excludes derivatives portfolio. (b) All numbers are pre-tax. (c) Includes Budapest Bank at December 31, 2014 (d) Includes loans at December 31, 2014 and investment companies and loans at December 31, 2013. (30) GE Capital – Net Interest Margin (a) For the twelve months ended December 31, 2014 ($ in billions) For the nine months ended September 30, 2014 December 31, 2013 Interest income from Loans and Leases 4.8% 5.0% 4.8% Yield Adjustors (Fees, Tax equivalency adjustment) 0.7% 0.7% 0.7% Investment Income 0.6% 0.6% 0.6% Operating Lease Income (net of depreciation) 0.9% 0.9% 0.9% Total Interest Income 7.0% 7.2% 7.0% Total GECC Interest Expense 2.0% 2.2% 2.0% Net Interest Margin 5.0% 5.0% 5.0% Average Gross Financing Receivables $ 256 $ 267 $ 257 Average Investment Securities 46 46 46 Average Interest-Earning Cash 69 61 69 Average ELTO (net of depreciation) 50 53 50 Average Earning Assets (AEA) $ 421 $ 426 $ 422 Average Total Assets $ 507 $ 523 $ 509 AEA/Average Total Assets (a) 83% 82% YTD net interest margin (NIM)% annualized (annualized NIM $ = 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) (31) 83% Appendix (32) Glossary Term Definition Borrowing Financial liability (short or long-term) that obligates us to repay cash or another financial asset to another entity. Cash equivalents Highly liquid debt instruments with original maturities of three months or less, such as commercial paper. Typically included with cash for reporting purposes, unless designated as available-for-sale and included with investment securities. Cash flow hedge 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. Comprehensive Income The sum of Net Income and Other Comprehensive Income. See “Other Comprehensive Income.” Delinquency Delinquent receivables are those that are 30 days or more past due based on their contractual terms. 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. 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." (33) Term Definition 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. Nonaccrual receivables Financing receivables 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, with the exception of consumer credit card accounts, for which we continue to accrue interest until the accounts are written off in the period that the account becomes 180 days past due. Although we stop accruing interest in advance of payments, we recognize interest income as cash is collected when appropriate, provided the amount does not exceed that which would have been earned at the historical effective interest rate. Recently restructured financing receivables are not considered delinquent when payments are brought current according to the restructured terms, but may remain classified as nonaccrual until there has been a period of satisfactory payment performance by the borrower and future payments are reasonably assured of collection. Noncontrolling interest Portion of shareowners’ equity in a subsidiary that is not attributable to GECC. 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 absorb expected losses, or (c) right to receive expected residual returns. (34)