GE Capital Fourth Quarter 2014

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."
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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.
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