United States Securities and Exchange Commission

WASHINGTON, D.C. 20549

FORM 10-K

(Mark One)

þ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended December 31, ~~2012~~2013

¨ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ___________to ___________

Commission file number 001-00035

General Electric Company

(Exact name of registrant as specified in charter)

New York		14-0689340
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

3135 Easton Turnpike, Fairfield, CT	06828-0001	203/373-2211
(Address of principal executive offices)	(Zip Code)	(Telephone No.)

Securities Registered Pursuant to Section 12(b) of the Act:
Title of each class		Name of each exchange on which registered
Common stock, par value $0.06 per share		New York Stock Exchange

Securities Registered Pursuant to Section 12(g) of the Act:

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes þ No ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No þ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer þ	Accelerated filer ¨
Non-accelerated filer ¨	Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨ No þ

The aggregate market value of the outstanding common equity of the registrant not held by affiliates as of the last business day of the registrant’s most recently completed second fiscal quarter was at least ~~$217.8~~$233.8 billion. There were ~~10,398,271,000~~10,033,130,000 shares of voting common stock with a par value of $0.06 outstanding at February 1, ~~2013.~~2014.

DOCUMENTS INCORPORATED BY REFERENCE

The definitive proxy statement relating to the registrant’s Annual Meeting of Shareowners, to be held April ~~24, 2013,~~23, 2014, is incorporated by reference into Part III to the extent described therein.

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Table of Contents

		Page
Part I

Item 1.	Business	3
Item 1A.	Risk Factors	1415
Item 1B.	Unresolved Staff Comments	1921
Item 2.	Properties	1921
Item 3.	Legal Proceedings	1921
Item 4.	Mine Safety Disclosures	2123

Part II

Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer
	Purchases of Equity Securities	2223
Item 6.	Selected Financial Data	2426
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2527
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	8790
Item 8.	Financial Statements and Supplementary Data	8790
Item 9.	Changes in and Disagreements With Accountants on Accounting
	and Financial Disclosure	~~193~~192
Item 9A.	Controls and Procedures	~~193~~192
Item 9B.	Other Information	~~194~~193

Part III

Item 10.	Directors, Executive Officers and Corporate Governance	~~194~~193
Item 11.	Executive Compensation	~~194~~193
Item 12.	Security Ownership of Certain Beneficial Owners and Management and
	Related Stockholder Matters	~~194~~193
Item 13.	Certain Relationships and Related Transactions, and Director Independence	~~195~~194
Item 14.	Principal Accounting Fees and Services	~~195~~194

Part IV

Item 15.	Exhibits and Financial Statement Schedules	~~195~~194

Signatures		~~201~~ 199

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Part I

Item 1. Business

General

Unless otherwise indicated by the context, we use the terms “GE” and “GECC” on the basis of consolidation described in Note 1 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report. Also, unless otherwise indicated by the context, “General Electric” means the parent company, General Electric Company (the Company).

General Electric’s address is 1 River Road, Schenectady, NY 12345-6999; we also maintain executive offices at 3135 Easton Turnpike, Fairfield, CT 06828-0001.

We are one of the largest and most diversified infrastructure and financial services corporations in the world. With products and services ranging from aircraft engines, power generation, oil and gas production equipment, and household appliances to medical imaging, business and consumer financing and industrial products, we serve customers in more than 100 countries and employ approximately ~~305,000~~307,000 people worldwide. Since our incorporation in 1892, we have developed or acquired new technologies and services that have broadened and changed considerably the scope of our activities.

In virtually all of our global business activities, we encounter aggressive and able competition. In many instances, the competitive climate is characterized by changing technology that requires continuing research and development. With respect to manufacturing operations, we believe that, in general, we are one of the leading firms in most of the major industries in which we participate. The businesses in which General Electric Capital Corporation (GECC) engages are subject to competition from various types of financial institutions, including commercial banks, thrifts, investment banks, broker-dealers, credit unions, leasing companies, consumer loan companies, independent finance companies and finance companies associated with manufacturers.

On ~~February 22, 2012,~~November 15, 2013, we ~~merged~~announced that we intend to pursue an initial public offering (IPO) of our ~~wholly-owned subsidiary, General Electric Capital Services, Inc. (GECS),~~North American Retail Finance business (Retail Finance) as a first step in a staged exit from that business. We plan to file a registration statement with and into GECS’ wholly-owned subsidiary, GECC. The merger simplified our financial services’ corporate structure by consolidating financial services entities and assets within our organization and simplifyingthe U.S. Securities and Exchange Commission (SEC) in the first quarter of 2014 and ~~regulatory reporting. Upon completion~~complete the IPO later in 2014.

We plan to issue up to 20% of the ~~merger, (i) all outstanding~~equity of Retail Finance in the IPO, in exchange for cash that will be used to increase the capital of the new company. We currently intend to complete our exit from Retail Finance in 2015 through a split-off transaction, by making a tax-free distribution of our remaining interest in Retail Finance to electing GE stockholders in exchange for shares of ~~GECC~~GE’s common ~~stock were cancelled, (ii)~~stock. We may also decide to exit by selling or otherwise distributing or disposing of all ~~outstanding GECS common stock and all GECS preferred stock held by~~or a portion of our remaining interest in the Company were converted into an aggregate of 1,000 shares of GECC common stock, and (iii) all treasury shares of GECS and all outstanding preferred stock of GECS held by GECC were cancelled. As a result, GECC became the surviving corporation, assumed all of GECS’ rights and obligations and became wholly-owned directly by the Company.Retail Finance shares.

Because we wholly-owned both GECS and GECC, the merger was accounted for as a transfer of assets between entities under common control. Transfers of net assets or exchanges of shares between entities under common control are accounted for at historical value, and as if the transfer occurred at the beginning of the period.

Prior to January 28, 2011, we also operated a media company, NBC Universal, Inc. (NBCU). Effective January 28, 2011, we held a 49% interest in a media entity that ~~includes~~included the NBC Universal businesses. On ~~February 12,~~March 19, 2013, we ~~entered into an agreement to sell~~completed the sale of our remaining 49% common equity interest to Comcast ~~Corporation, as well as the NBCU floors in 30 Rockefeller Center, for $18.1 billion. The sale is expected to be completed by the end of the first quarter of 2013.~~
Corporation.

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Forward-Looking Statements

This document contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; potential market disruptions or other impacts arising in the United States or Europe from developments in sovereign debt situations; the impact of conditions in the financial and credit markets on the availability and cost of General Electric Capital Corporation’s (GECC) funding and on our ability to reduce GECC’s asset levels as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; ~~changes in Japanese consumer behavior that may affect our estimates of liability for excess interest refund claims (GE Money Japan);~~ pending and future mortgage securitization claims and litigation in connection with WMC, which may affect our estimates of liability, including possible loss estimates; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the adequacy of our cash flows and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at planned levels; GECC’s ability to pay dividends to GE at the planned level; our ability to convert pre-order ~~commitments~~commitments/wins into orders; the price we realize on orders since commitments/wins are stated at list prices; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation; our capital allocation plans, as such plans may change including with respect to the timing and ~~affect planned~~size of share repurchases, ~~and strategic actions, including~~ acquisitions, joint ventures, dispositions and ~~dispositions;~~other strategic actions; our success in completing announced transactions and integrating acquired businesses; our ability to complete the staged exit from our North American Retail Finance business as planned; the impact of potential information technology or data security breaches; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. These uncertainties are described in more detail in Part I, Item 1A. “Risk Factors” of this Form 10-K Report. We do not undertake to update our forward-looking statements.

Operating Segments

Segment revenue and profit information and additional financial data and commentary on recent financial results for operating segments are provided in the Segment Operations section in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in Note 2827 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

Operating businesses that are reported as segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, ~~Home~~Appliances & ~~Business Solutions~~Lighting and GE Capital. Net earnings of GECC and the effect of transactions between segments are eliminated to arrive at total consolidated data. A summary description of each of our operating segments follows.

On February 22, 2012, we merged our wholly-owned subsidiary, GECS, with and into GECS’ wholly-owned subsidiary, GECC. Our financial services segment, GE Capital, continues to comprise the continuing operations of GECC, which now include the run-off insurance operations previously held and managed in GECS. Unless otherwise indicated, references to GECC and the GE Capital segment in this Form 10-K Report relate to the entity or segment as they exist subsequent to the February 22, 2012 merger.

Effective October 1, 2012, we reorganized the former Energy Infrastructure segment into three segments – Power & Water, Oil & Gas and Energy Management and we began reporting these as separate segments beginning with this Form 10-K Report. We also reorganized our Home & Business Solutions segment by transferring our Intelligent Platforms business to Energy Management. Results for 2012 and prior periods in this Form 10-K Report are reported on this basis.

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We also continue our longstanding practice of providing supplemental information about the businesses within GE Capital.

Power & Water

Power & Water ~~(19.2%~~(16.9%, ~~17.4%~~19.3% and ~~16.6%~~17.5% of consolidated revenues in 2013, 2012 ~~2011~~ and ~~2010,~~2011, respectively) is a leader in the field of development, implementation and improvement of products and technologies that harness resources such as wind, oil, gas and water to produce electric power.

Our operations are located in North America, Europe, Asia, South America, Africa and ~~Africa.~~the Middle East.

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Power & Water serves power generation, industrial, government and other customers worldwide with products and services related to energy production. We sell gas turbines and generators that are used principally in power plants for generation of electricity and for industrial cogeneration and mechanical drive applications. We are a leading provider of Integrated Gasification Combined Cycle (IGCC) ~~technology design and development. IGCC systems convert~~systems. By converting coal and other hydrocarbons into synthetic gas that is used as the primary fuel for gas turbines in combined-cycle ~~systems. IGCC~~ systems, ~~produce~~ fewer air pollutants are produced compared with traditional pulverized coal power plants. We sell steam turbines and generators to the electric utility industry and to private industrial customers for cogeneration applications. We offer wind turbines as part of our renewable energy ~~portfolio, which also includes solar technology.~~portfolio. We also sell aircraft engine derivatives for use as industrial power sources. Nuclear reactors, fuel and support services for both new and installed boiling water reactors are offered through joint ventures with Hitachi and Toshiba. We provide our customers with solutions to meet their needs through a broad portfolio of aftermarket services, including equipment upgrades, long-term maintenance service agreements, repairs, equipment installation, remote monitoring, performance testing and diagnostics, asset management and performance optimization tools ~~remote performance testing~~ and Dry Low NOx (DLN) tuning. We continue to invest in advanced technology development that will provide more value to our customers and more efficient solutions that comply with today’s strict environmental regulations.

Power & Water also offers water treatment solutions for industrial and municipal water systems including the supply and related services of specialty chemicals, water purification systems, pumps, valves, filters and fluid handling equipment for improving the performance of water, wastewater and process systems, including mobile treatment systems and desalination processes.

On February 1, 2011, we completed the acquisition of Dresser, Inc., which broadened the product portfolio with technologies for gas engines.

Power & Water is party to revenue sharing programs that share the financial results of certain aeroderivative lines. These businesses are controlled by Power & Water, but counterparties have an agreed share of revenues as well as development and component production responsibilities. At December 31, ~~2012,~~2013, such counterparty interests ranged from ~~16%~~10% to ~~49%~~33% of various programs; associated distributions to such counterparties are accounted for as costs of production.

Worldwide competition for power generation products and services is intense. Demand for power generation is global and, as a result, is sensitive to the economic and political environment of each country in which we do business. The balance of regional growth and demand side management are important factors to evaluate as we plan for future development.

For information about orders and backlog, see the Segment Operations section in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Form 10-K Report.

Oil & Gas

Oil & Gas ~~(10.3%~~(11.6%, ~~9.2%~~10.4% and ~~6.3%~~9.3% of consolidated revenues in 2013, 2012 ~~2011~~ and ~~2010,~~2011, respectively) helps oil and gas companies make more efficient and sustainable use of the world's energy resources.

Our operations are located in North America, Europe, Asia, Australia, South America and Africa.

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Oil & Gas supplies mission critical equipment for the global oil and gas industry, used in applications spanning the entire value chain from drilling ~~and completion~~ through production, liquefied natural gas (LNG) and pipeline compression, pipeline inspection, and downstream processing in refineries and petrochemical plants. The business designs and manufactures surface and subsea drilling and production systems, equipment for floating production platforms, compressors, turbines, turboexpanders, high pressure reactors, industrial power generation and a broad portfolio of auxiliary equipment.

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To ensure that the installed base is maintained appropriately, our service business has over 40 service centers and workshops in the world's main oil and gas extraction and production regions. The business also provides upgrades to customers’ machines, using the latest available technology, to extend production capability and environmental performance. We also provide pipeline integrity solutions, sensor-based measurement, inspection, asset condition monitoring, controls, and radiation measurement solutions. Oil & Gas also offers integrated solutions using sensors for temperature, pressure, moisture, gas and flow rate as well as non-destructive testing inspection equipment, including radiographic, ultrasonic, remote visual and eddy current.

On July 1, 2013, we completed the acquisition of Lufkin Industries, Inc., a leading provider of artificial lift technologies for the oil and gas industry and a manufacturer of industrial gears, for $3.3 billion.

On February 4, 2011 and April 26, 2011, we completed the acquisitions of Wellstream PLC and the Well Support division of John Wood Group PLC, respectively. Wellstream PLC expands the Oil & Gas portfolio with flexible subsea risers and flow lines. The Well Support division of John Wood Group PLC adds equipment, including electrical submersible pumps, that helps extract more oil and gas from mature fields. On February 1, 2011, we completed the acquisition of Dresser, Inc., which broadens the Oil & Gas product portfolio in control and relief valves, measurement, regulation and control solutions for gas and fuel distributions.

Demand for oil and gas equipment and services is global and, as a result, is sensitive to the economic and political environment of each country in which we do business. The balance of regional growth and demand side management are important factors to evaluate as we plan for future development.

Energy Management

Energy Management ~~(5.0%~~(5.2%, ~~4.4%~~5.1% and ~~3.5%~~4.4% of consolidated revenues in 2013, 2012 ~~2011~~ and ~~2010,~~2011, respectively) designs, manufactures and services leading technology solutions for the delivery, management, conversion and optimization of electrical power for customers across multiple energy-intensive industries.

Our operations are located in North America, Europe, Asia, Latin America and the Middle East.

Energy Management provides integrated electrical products and systems used to distribute, protect and control energy and equipment. We manufacture electrical distribution and control products, lighting and power panels, switchgear and circuit breakers that are used to distribute and manage power in a variety of residential, commercial, consumer and industrial applications. We also provide customer-focused solutions centered on the delivery and control of electric power, and a full portfolio of field services including engineering, inspection, mechanical and emergency services. Energy Management also provides advanced products and services that modernize the grid, from the power plant to the power consumer, such as protection and control, industrial strength communications, smart meters, monitoring & diagnostics, visualization software and advanced analytics. We manufacture advanced motor, drives and control technologies to improve the operational efficiency of energy intensive industries such as metals, mining, marine, oil and gas. Energy Management also provides plant automation, hardware, software and embedded computing systems including advanced software, controllers, single board computers, motion control and operator interfaces.

In August, 2013, GE and XD Electric Group announced the formation of a new global partnership combining GE’s grid automation capabilities and global energy presence with XD Electric’s comprehensive portfolio of high-voltage (HV) power equipment. The partnership also expands GE’s industry capabilities as a leading provider of transmission and distribution (T&D) solutions.

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On March 2, 2011 and September 2, 2011, we completed the acquisitions of Lineage Power Holdings, Inc. (Lineage Power) and Converteam, respectively. The acquisition of Lineage Power, a provider of high-efficiency power conversion infrastructure technology and services for the telecommunications and datacenter industries, continues the expansion of ~~Energy’s~~Energy Management’s offerings from the electric grid to datacenters, cell towers, routers, servers and circuit board electronics. Converteam, a provider of electrification and automation equipment and systems, adds significant product and service capabilities in power electronics, industrial automation and process controls.

Aviation

Aviation ~~(13.6%~~(15.0%, ~~12.8%~~13.6% and ~~11.8%~~12.9% of consolidated revenues in 2013, 2012 ~~2011~~ and ~~2010,~~2011, respectively) is one of the world’s leading providers of jet engines and related services with operations in North America, Europe, Asia and South America.

Aviation produces, sells and services jet engines, turboprop and turbo shaft engines, and related replacement parts for use in military and commercial aircraft. Our military engines are used in a wide variety of aircraft including fighters, bombers, tankers, helicopters and surveillance aircraft, as well as marine applications, and our commercial engines power aircraft in all categories of range: short/medium, intermediate and long-range, as well as executive and regional aircraft. We also produce and market engines through CFM International, a company jointly owned by GE and Snecma, a subsidiary of SAFRAN of France, and Engine Alliance, LLC, a company jointly owned by GE and the Pratt & Whitney division of United Technologies Corporation. New engines are also being designed and marketed in a joint venture with Honda Aero, Inc., a division of Honda Motor Co., Ltd.

~~Aviation is party to agreements in which the financial results, as well as production responsibilities,~~We provide maintenance, component repair and overhaul services (MRO), including sales of ~~certain aircraft~~replacement parts for many models of engines and ~~marine engine lines~~repair and overhaul of engines manufactured by competitors. These MRO services are ~~shared. These agreements take the form of both joint ventures and revenue sharing programs.~~

Joint ventures market and sell particular aircraft engine lines, but require negligible direct investment because the venture parties conduct essentially all of the development, production, assembly and aftermarket support activities. Under these agreements, Aviation supplies certain engine components and retains related intellectual property rights. The CFM56 engine line is the product of CFM International and the GP7000 engine line is the product of Engine Alliance, LLC.

Revenue sharing programs are a standard form of cooperation for specific product programs in the aviation industry. These businesses are controlled by Aviation, but counterparties have an agreed share of revenues as well as development and component production responsibilities. At December 31, 2012, such counterparty interests ranged from 1% to 47% of various programs; associated distributions to such counterparties are accounted for as costs of production.often provided under long-term maintenance contracts.

Aviation also produces global aerospace systems and equipment, including airborne platform computing systems, power generation and distribution products, mechanical actuation products and landing gear, plus various engine components for use in both military and commercial aircraft.

~~We provide maintenance,~~Aviation is party to agreements in which the financial results, and in most cases production responsibilities, of certain products are shared. These agreements take the form of both joint ventures and revenue sharing programs.

The scope of the joint ventures can range from development through the marketing, sales, production, assembly and aftermarket support of particular products.

Revenue sharing programs are a standard form of cooperation for specific product programs in the aviation industry. These programs are controlled by Aviation, but counterparties have an agreed share of revenues as well as development and component ~~repair and overhaul services (MRO), including sales~~production responsibilities. At December 31, 2013, such counterparty interests ranged from 1% to 39% of ~~replacement parts~~various programs; associated distributions to such counterparties are accounted for ~~many models~~as costs of ~~engines and repair and overhaul of engines manufactured by competitors. These MRO services are often provided under long-term maintenance contracts.~~production.

On ~~December 21, 2012,~~August 1, 2013, we ~~announced an agreement to purchase~~completed the acquisition of the aviation business of Avio S.p.A., a manufacturer of aviation propulsion components and systems for ~~$4.3~~$4.4 billion.

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The worldwide competition in aircraft jet engines and MRO (including parts sales) is intense. Both U.S. and export markets are important. Product development cycles are long and product quality and efficiency are critical to success. Research and development expenditures are important in this business, as are focused intellectual property strategies and protection of key aircraft engine design, manufacture, repair and product upgrade technologies. Our products and services are subject to a number of regulatory standards.

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Potential sales for any engine are limited by, among other things, its technological lifetime, which may vary considerably depending upon the rate of advance in technology, the relatively small number of potential customers and the limited number of relevant airframe applications. Aircraft engine orders tend to follow military and airline procurement cycles, although these cycles differ from each other.

Healthcare

Healthcare ~~(12.4%~~(12.5%, ~~12.3%~~12.5% and ~~11.3%~~12.3% of consolidated revenues in 2013, 2012 ~~2011~~ and ~~2010,~~2011, respectively) is one of the world’s leading providers of essential healthcare technologies to developed, developing and emerging countries. Our operations are located in North America, Europe, Asia, South America and Australia.

Healthcare has expertise in medical imaging and information technologies, medical diagnostics, patient monitoring systems, disease research, drug discovery and biopharmaceutical manufacturing technologies. We are dedicated to predicting and detecting disease earlier, monitoring its progress and informing physicians, and helping physicians tailor treatment for patients. Healthcare manufactures, sells and services a wide range of medical equipment that helps provide a fast, non-invasive way for doctors to see broken bones, diagnose trauma cases in the emergency room, view the heart and its function, and identify early stages of cancers or brain disorders. With diagnostic imaging systems such as Magnetic Resonance (MR), Computed Tomography (CT) and Positron Emission Tomography (PET) scanners, X-ray, nuclear imaging, digital mammography, and Molecular Imaging technologies, Healthcare creates products that allow clinicians to see inside the human body more clearly than ever. In addition, Healthcare-manufactured technologies include patient and resident monitoring, diagnostic cardiology, ultrasound, bone densitometry, anesthesiology and oxygen therapy, and neonatal and critical care devices. Medical diagnostics and life sciences products include diagnostic imaging agents used in medical scanning procedures, drug discovery, biopharmaceutical manufacturing and purification, and tools for protein and cellular analysis for pharmaceutical and academic research, including existing and a pipeline of precision molecular diagnostics in development for neurology, cardiology and oncology applications.

Our product services include remote diagnostic and repair services for medical equipment manufactured by GE and by others, as well as computerized data management, information technologies and customer productivity services.

We compete with a variety of U.S. and non-U.S. manufacturers and services providers. Technological competence and innovation, excellence in design, high product performance, quality of services and competitive pricing are among the key factors affecting competition for these products and services. Products and services are sold worldwide primarily to hospitals, medical facilities, pharmaceutical and biotechnology companies, and to the life science research market.

Throughout the world, we deliver healthymagination solutions that provide greater efficiency to help control costs, better quality to improve patient outcomes, and extended access to healthcare for patients in underserved markets.

Our products are subject to regulation by numerous government agencies, including the U.S. Food and Drug Administration (U.S. FDA), as well as various laws that apply to claims submitted under Medicare, Medicaid or other government funded healthcare programs.

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Transportation

Transportation ~~(3.8%~~(4.0%, ~~3.3%~~3.8% and ~~2.3%~~3.3% of consolidated revenues in 2013, 2012 ~~2011~~ and ~~2010,~~2011, respectively) is a global technology leader and supplier to the railroad, marine, drilling and mining industries. We serve customers in more than 100 countries in North America, Europe, Asia, South America, Africa and Australia.

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Transportation manufactures high-horsepower, diesel-electric locomotives, including the Evolution Series™, which meets or exceeds the U.S. Environmental Protection Agency’s Tier III requirements. We also offer leading drive technology solutions to the mining, transit, marine and stationary, and drilling industries. We announced the launch of our Energy Storage business in 2012. GE's Durathon Battery technology is designed for energy storage solutions for stationary and motive applications in the telecommunications, power generation, grid operation and energy management applications. Also, on November 30, 2012, we completed the acquisition of Industrea Limited, a provider of mining products and services with a focus in underground mining.

Transportation provides a portfolio of service offerings designed to improve fleet efficiency and reduce operating expenses, including repair services, locomotive enhancements, modernizations, and information-based services like remote monitoring and diagnostics. We provide train control products, railway management services, and signaling systems to increase service levels, optimize asset utilization, and streamline operations for railroad owners and operators. We deliver leading edge tools that improve asset availability and reliability, optimize network planning, and control network execution to plan.

Appliances & Lighting

Appliances & Lighting (formerly Home & Business ~~Solutions~~

~~Home & Business Solutions (5.4%~~Solutions) (5.7%, ~~5.2%~~5.4% and ~~5.3%~~5.2% of consolidated revenues in 2013, 2012 ~~2011~~ and ~~2010,~~2011, respectively) sells products that share several characteristics − competitive design, efficient manufacturing and effective distribution and service. ~~Home~~Appliance & ~~Business Solutions’~~Lighting products such as major appliances and a subset of lighting products are primarily directed to consumer applications, while other lighting products are directed towards commercial and industrial applications. Cost control, including productivity, is key in the highly competitive markets in which we compete. We also invest in the development of differentiated, premium products that are more profitable such as energy efficient solutions for both consumers and businesses.

We sell and service major home appliances including refrigerators, freezers, electric and gas ranges, cooktops, dishwashers, clothes washers and dryers, microwave ovens, room air conditioners, residential water systems for filtration, softening and heating, and hybrid water heaters. Our brands include GE Monogram®, GE Café™, GE Profile™, GE®, ~~Hotpoint®~~GE Artistry™, and ~~GE Café™~~Hotpoint®. We manufacture certain products and also source finished product and component parts from third-party global manufacturers. A large portion of our appliances sales are through a variety of retail outlets for replacement of installed units. Residential building contractors installing units in new construction is our second major U.S. channel. We offer one of the largest original equipment manufacturer (OEM) service organizations in the appliances industry, providing in-home repair and aftermarket parts.

We also manufacture, source and sell a variety of lamp products for commercial, industrial and consumer markets, including full lines of incandescent, halogen, fluorescent, high-intensity discharge, light-emitting diode, automotive and miniature products.

We have global operations located in North America, Europe, Asia and Latin America.

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GE Capital

GE Capital ~~(31.2%~~(30.2%, ~~33.3%~~30.9% and ~~33.3%~~33.0% of consolidated revenues in 2013, 2012 ~~2011~~ and ~~2010,~~2011, respectively) businesses offer a broad range of financial services and products worldwide for businesses of all sizes. Services include commercial loans and leases, fleet management, financial programs, ~~home loans,~~ credit cards, personal loans and other financial services. GE Capital also develops strategic partnerships and joint ventures that utilize GE’s industry-specific expertise in aviation, energy, infrastructure and healthcare to capitalize on market-specific opportunities.

During ~~2012,~~2013, GE Capital provided approximately ~~$107~~$115 billion of new financings in the U.S. to various companies, infrastructure projects and municipalities. Additionally, we extended approximately ~~$96~~$105 billion of credit to approximately 5761 million U.S. consumers. GE Capital provided credit to approximately ~~37,100~~31,200 new commercial customers and ~~34,000~~43,000 new small businesses in the U.S. during ~~2012~~2013 and ended the period with outstanding credit to more than ~~243,000~~237,000 commercial customers and ~~201,000~~212,000 small businesses through retail programs in the U.S.

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GECC is a regulated savings and loan holding company under U.S. law and became subject to Federal Reserve Board (FRB) supervision on July 21, 2011, the one-year anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA). In addition, on July 8, 2013, the U.S. Financial Stability Oversight Council (FSOC) designated GECC as a nonbank systemically important financial institution (nonbank SIFI) under the DFA. Many of the rulemakings for supervision of nonbank SIFIs are not final and therefore the exact impact and implementation date remain uncertain. GECC continues to plan for the enhanced prudential standards that will apply to nonbank SIFIs. These DFA rulemakings will require, among other items, enhanced capital and liquidity levels, compliance with the comprehensive capital analysis and review regulations (CCAR), compliance with counterparty credit exposure limits, and the development of a resolution plan for submission to regulators.

We have communicated our goal of reducing GE Capital’s ending net investment (ENI), most recently targeting ENI of $300 billion to $350 billion. ENI is a metric used by us to measure the total capital we have invested in our financial services business. GE Capital’s ENI (excluding cash and equivalents) was $380 billion at December 31, 2013. To achieve this goal, we are more aggressively focusing our businesses on selective financial services products where we have deep domain experience, broad distribution, and the ability to earn a consistent return on capital, while managing our overall balance sheet size and risk. We have a strategy of exiting those businesses that are deemed to be non-strategic or that are underperforming. We have completed a number of dispositions in our businesses in the past and will continue to evaluate options going forward.

While we are exiting non-core businesses, we are investing in our core businesses in markets where we believe that GECC has deep domain experience and is competitively advantaged. Accordingly, in the short-term, as we reduce our ENI through exiting non-core businesses, the overall level of our future net earnings may be reduced. However, over the long-term, we believe that this strategy will improve our long-term performance through higher returns as we will have a larger concentration of assets in our core businesses, as opposed to the underperforming or non-strategic assets we will be exiting; reduce liquidity risk as we pay down outstanding debt and diversify our sources of funding (with less reliance on the global commercial paper markets and an increase in alternative sources of funding such as deposits); and reduce capital requirements while strengthening capital ratios. Additional information about our liquidity and how we manage this risk can be found in the Financial Resources and Liquidity section in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Form 10-K Report.

Within our GE Capital operating segment, we operate the businesses described below along product lines.

Our operations are located in North America, South America, Europe, Australia and Asia.

GE Capital has communicated its goal of reducing its ending net investment (ENI). To achieve this goal, we are more aggressively focusing our businesses on selective financial services products where we have domain knowledge, broad distribution, and the ability to earn a consistent return on capital, while managing our overall balance sheet size and risk. We have a strategy of exiting those businesses that are underperforming or that are deemed to be non-strategic. We have completed a number of dispositions in our businesses in the past and will continue to evaluate options going forward.

Commercial Lending and Leasing (CLL)

CLL ~~provides customers around the world with a broad range of financing solutions. We have~~has particular mid-market expertise, and primarily ~~offer collateralized~~offers secured commercial loans, ~~leases~~equipment financing and other financial services to ~~customers, including manufacturers, distributors and end-users for~~companies across a ~~variety~~wide range of ~~equipment and major capital assets. These assets include industrial-related facilities and equipment; vehicles; corporate aircraft; and equipment used in many~~ industries including ~~the~~ construction, retail, manufacturing, transportation, media, communications, ~~entertainment~~technology and ~~healthcare industries.~~healthcare. Equipment financing activities include industrial, medical, fleet vehicles, corporate aircraft, construction, office imaging and many other equipment types.

In the first quarter of 2013, we announced the planned disposition of our CLL trailer services business in Europe (CLL Trailer Services) and classified the business as discontinued operations. We completed the sale in the fourth quarter of 2013.

In 2011, we completed the sale of our CLL marine container leasing business, which consists of our controlling interests in the GE SeaCo joint venture along with other owned marine container assets, and our CLL trailer fleet services business in Mexico.

(10)

We operate in a highly competitive environment. Our competitors include commercial banks, investment banks, leasing companies, financing companies associated with manufacturers, and independent finance companies. Competition related to our lending and leasing operations is based on price, that is, interest rates and fees, as well as deal structure and terms. In recent years, there has been a disruption in the capital markets and in access to and availability of capital as well as the exit of some competitors. Profitability is affected not only by broad economic conditions that affect customer credit quality and the availability and cost of capital funding, but also by successful management of credit risk, operating risk and market risks such as interest rate and currency exchange risks. Success requires ~~high quality~~high-quality risk management systems, customer and industry specific knowledge, diversification, service and distribution channels, strong collateral and asset management knowledge, ~~deal structuring~~strong transaction expertise and the ability to reduce costs through technology and productivity.

Consumer

Consumer, through consolidated entities and associated companies, is a leading provider of financial services to consumers and retailers around the world. We offer a full range of financial products to suit customers’ needs. These products include, on a global basis, private-label credit cards; personal loans; bank cards; auto loans and leases; mortgages; debt consolidation; home equity loans; deposit and other savings products; and small and medium enterprise lending.

In the fourth quarter of 2013, we completed a sale of 68.5% of our Swiss consumer finance bank, Cembra Money Bank AG (Cembra), through an IPO; we committed to sell our Consumer banking business in Russia (Consumer Russia) and classified the business as discontinued operations; and we sold our remaining equity interest in the Bank of Ayudhya (Bay Bank).

In November 2013, we announced that we intend to pursue an IPO of our North American Retail Finance business (Retail Finance) as a first step in a staged exit from that business. We plan to file a registration statement with the SEC in the first quarter of 2014 and complete the IPO later in 2014.

~~(10)~~

We plan to issue up to 20% of the equity of Retail Finance in the IPO, in exchange for cash that will be used to increase the capital of the new company. We currently intend to complete our exit from Retail Finance in 2015 through a split-off transaction, by making a tax-free distribution of our remaining interest in Retail Finance to electing GE stockholders in exchange for shares of GE’s common stock. We may also decide to exit by selling or otherwise distributing or disposing of all or a portion of our remaining interest in the Retail Finance shares.

In ~~January~~the first quarter of 2013, we acquired the deposit business of MetLife Bank, N.A., which is an online banking platform with approximately $6.4 billion in U.S. retail deposits that will allow us to better serve our customers.

~~(12)~~

Orders and Backlog

~~(14)~~

~~bank~~non-bank financial institutions, consumer lending, the over-the-counter derivatives market and tax laws and regulations, which changes may have an effect on GE’s and GE Capital’s structure, operations, liquidity, capital requirements, effective tax rate and performance. For example, under the Dodd-Frank Wall Street Reform and Consumer Protection Act, GE Capital is subject to prudential oversight by the Federal Reserve, which subjects us to increased and evolving regulatory requirements. We are also subject to a number of trade control laws and regulations that may affect our ability to sell our products in global markets. In addition, we are subject to regulatory risks from laws that reduce the allowable lending rate or limit consumer borrowing, local capital requirements that may increase the risk of not being able to retrieve assets, and changes to tax law that may affect our return on investments. For example, GE’s effective tax rate is reduced because active business income earned and indefinitely reinvested outside the United States is taxed at less than the U.S. rate. A significant portion of this reduction depends upon a provision of U.S. tax law that defers the imposition of U.S. tax on certain active financial services income until that income is repatriated to the United States as a dividend. This provision is consistent with international tax norms and permits U.S. financial services companies to compete more effectively with non-U.S. financial institutions in global markets. This provision, which had expired at the end of 2011, was reinstated in January 2013 retroactively for two years through the end of 2013. This provision also had been scheduled to expire and had been extended by Congress on six previous occasions, but there can be no assurance that it will continue to be extended. In the event the provision is not extended after 2013, the current U.S. tax imposed on active financial services income earned outside the United States would increase, making it more difficult for U.S. financial services companies to compete in global markets. If this provision is not extended, we expect our effective tax rate to increase significantly after 2014. In addition, efforts by public and private sectors to control the growth of healthcare costs may lead to lower reimbursements and increased utilization controls related to the use of our products by healthcare providers. Continued government scrutiny, including reviews of the U.S. Food and Drug Administration (U.S. FDA) medical device pre-market authorization and post-market surveillance processes, may impact the requirements for marketing our products and slow our ability to introduce new products, resulting in an adverse impact on our business. Furthermore, we have been, and expect to continue, participating in U.S. and international governmental programs, which require us to comply with strict governmental regulations. Inability to comply with these regulations could adversely affect our status in these projects and adversely affect our results of operations, financial position and cash flows.

~~(15)~~

objectives. For example, delays in obtaining tax rulings and regulatory approvals or clearances, and disruptions or volatility in the capital markets may impact our ability to complete the staged exit from our North American Retail Finance business as planned. Alternatively, we may dispose of a business at a price or on terms that are less than we had anticipated. After reaching an agreement with a buyer or seller for the acquisition or disposition of a business, we are subject to satisfaction of pre-closing conditions as well as to necessary regulatory and governmental approvals on acceptable terms, which may prevent us from completing the transaction. Dispositions may also involve continued financial involvement in the divested business, such as through continuing equity ownership, guarantees, indemnities or other financial obligations. Under these arrangements, performance by the divested businesses or other conditions outside our control could affect our future financial results.

~~(16)~~

depending on the amount of the increase, could have a material adverse effect on our business, financial position and results of operations.

~~(17)~~

covenants would require posting additional capital or collateral in the event of a ratings downgrade, which, depending on the extent of the downgrade, could have a material adverse effect on our liquidity and capital position.

~~(19)~~

Court for the Southern District of New York naming as defendants GE, a number of GE officers (including our chief executive officer and chief financial officer) and our directors. The complaint seeks unspecified damages and principally alleges breaches of fiduciary duty and other causes of action related to the GE dividend and SEC matter which GE resolved in August 2009 and alleged mismanagement of our financial services businesses. In September 2011, our motion to dismiss was granted. In June 2012, plaintiff’s motion to file an amended complaint was denied. The plaintiff has filed an appeal.

~~(20)~~

or potential recoveries based upon the underlying collateral. Of the mortgage loans involved in these lawsuits, approximately ~~$3,800~~$3,900 million were included in WMC’s pending claims at December 31, ~~2012.~~2013. The claims relating to other mortgage loans not included in WMC’s pending claims consist of sampling-based claims in two cases on approximately ~~$900~~$600 million of mortgage loans and, in ~~six~~ten cases, claims for repurchase or damages based on the alleged failure to provide notice of defective loans, breach of a corporate representation and warranty, and/or non-specific claims for rescissionary damages on approximately ~~$3,100~~$6,200 million of mortgage ~~loans.~~loans, as of December 31, 2013. The dismissal of a lawsuit subsequent to December 31, 2013 decreased the pending claims amount by $123 million and the Litigation Claims amount by $318 million. See Note 2 to the consolidated financial statements in Part II, Item 8 “Financial Statements and Supplementary Data” of this Form 10-K Report for additional information.

~~(25)~~

Overview of Our Earnings from ~~2010~~2011 through ~~2012~~2013

~~(27)~~

GE sales of product services were $44.8 billion in 2013, an increase of 3% compared with 2012, and operating profit from product services was $13.4 billion in 2013, an increase of 7% compared with 2012. Both the sales and operating profit of product services increases were at Oil & Gas, Aviation, Energy Management and Transportation. GE sales of product services were $43.4 billion in 2012, an increase of 4% compared with 2011, and operating profit from product services was $12.5 billion in 2012, an increase of 6% compared with 2011. Both the sales and operating profit of product services increases were at Power & Water, Oil & Gas, Transportation and Energy Management. GE sales of product services were $41.9 billion in 2011, an increase of 14% compared with 2010, and operating profit from product services was $11.8 billion in 2011, an increase of 15% compared with 2010. Both the sales and operating profit of product services increases were at Oil & Gas, Energy Management, Aviation, Transportation and Healthcare.

~~(30)~~

On January 2, 2013, the American Taxpayer Relief Act of 2012 was enacted and the law extended several provisions, including a ~~two year~~two-year extension of the U.S. tax provision deferring tax on active financial services income and certain U.S. business credits, retroactive to January 1, 2012. Under accounting rules, a tax law change is taken into account in calculating the income tax provision in the period ~~in which~~ enacted. Because the extension was enacted into law ~~after the end of 2012,~~in 2013, tax expense ~~for 2012 does not reflect~~in 2013 reflected retroactive extension of the previously expired provisions.

~~(31)~~

Supplementary Data” of this Form 10-K Report. In addition, since this benefit depends on management’s intention to indefinitely reinvest amounts outside the U.S., our tax provision will increase to the extent we no longer indefinitely reinvest foreign earnings.

~~(32)~~

Global Risk Management

(a)	Segment revenues includes both revenues and other income related to the segment.

(b)	Includes the results of NBCU, our formerly consolidated subsidiary, and our ~~current~~former equity method investment in NBCUniversal ~~LLC.~~LLC until we sold it in the first quarter of 2013.

See accompanying notes to consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

Power & Water revenues of $24.7 billion decreased $3.6 billion, or 13%, in 2013 as lower volume ($3.9 billion), primarily equipment at Wind and Thermal, and the effects of the stronger U.S. dollar ($0.1 billion) were partially offset by higher prices ($0.2 billion) and other income ($0.2 billion) primarily related to a sale of assets.

Segment profit of $5.0 billion decreased $0.4 billion, or 8%, in 2013 as lower volume ($0.7 billion) and lower cost productivity ($0.3 billion), despite SG&A cost reductions, were partially offset by the effects of deflation ($0.2 billion), higher prices ($0.2 billion) and other income ($0.2 billion) primarily related to a sale of assets.

Power & Water revenues of $28.3 billion increased $2.6 billion, or 10%, in 2012 as higher volume ($3.4 billion), driven by an increase in sales of equipment at Wind, and an increase in other income ($0.2 billion) were partially offset by the effects of the stronger U.S. dollar ($0.6 billion) and lower prices ($0.4 billion).

Segment profit of $5.4 billion increased $0.4 billion, or 8%, in 2012 as higher volume ($0.7 billion), increased other income ($0.2 billion) and the impacts of deflation ($0.1 billion), were partially offset by lower prices ($0.4 billion), lower productivity ($0.1 billion) and the effects of the stronger U.S. dollar ($0.1 billion).

(39)

Power & Water orders increased 13% to $27.4 billion in 2013. Total Power & Water backlog increased 10% to $64.6 billion at December 31, 2013, composed of equipment backlog of $11.4 billion and services backlog of $53.2 billion. Comparable December 31, 2012 equipment and service order backlogs were $8.6 billion and $50.2 billion, respectively.

Oil & Gasrevenues of ~~$25.7~~$17.0 billion increased ~~$0.9~~$1.7 billion (including ~~$0.3~~$0.7 billion from acquisitions), or 4%11%, in ~~2011~~2013 primarily due to higher volume ($1.5 billion) and higher prices ($0.2 billion).

Segment profit of $2.2 billion increased $0.3 billion, or 13%, in 2013 as higher volume ($~~0.9~~0.2 billion) and ~~the effects of the weaker U.S. dollar~~higher prices ($~~0.4~~0.2 billion) were partially offset by lower ~~prices ($0.5 billion).~~

~~Segment profit of $5.0 billion decreased $0.8 billion, or 13%, in 2011 as lower~~cost productivity ~~($0.7 billion), and lower prices ($0.5 billion), driven primarily by Wind, were partially offset by higher volume ($0.2 billion) and the effects of deflation~~ ($0.1 billion).

~~(38)~~

Power & Water segment orders decreased 10% to $24.2 billion in 2012. Total Power & Water backlog increased 1% to $58.8 billion at December 31, 2012, composed of equipment backlog of $8.6 billion and services backlog of $50.2 billion. Comparable December 31, 2011 equipment and service order backlogs were $12.0 billion and $45.9 billion, respectively. See Corporate Items and Eliminations for a discussion of items not allocated to this segment.

Oil & Gas revenues of $15.2 billion increased $1.6 billion (including $0.7 billion from acquisitions), or 12%, in 2012 as higher volume ($2.3 billion) driven by acquisitions and an increase in sales of both equipment and services was partially offset by the effects of the stronger U.S. dollar ($0.7 billion).

Segment profit of $1.9 billion increased $0.3 billion, or 16%, in 2012 as higher volume ($0.3 billion) and increased productivity ($0.1 billion), reflecting increased equipment margins, were partially offset by the effects of the stronger U.S. dollar ($0.1 billion).

Oil & Gas revenues of $13.6 billion increased $4.2 billion (including $2.9 billion from acquisitions), or 44%, in 2011 as higher volume ($3.8 billion) and the effects of the weaker U.S. dollar ($0.4 billion) were partially offset by lower prices ($0.1 billion).

~~Segment profit of $1.7 billion increased $0.3 billion, or 18%, in 2011 as higher volume ($0.6 billion) was partially offset by lower productivity ($0.3 billion) and lower prices ($0.1 billion).~~

~~Oil & Gas segment~~ orders increased ~~16%~~8% to ~~$18.2~~$19.7 billion in ~~2012.~~2013. Total Oil & Gas backlog increased ~~24%~~27% to ~~$14.8~~$18.8 billion at December 31, ~~2012,~~2013, composed of equipment backlog of ~~$10.2~~$13.0 billion and services backlog of ~~$4.5~~$5.8 billion. Comparable December 31, ~~2011~~2012 equipment and service order backlogs were ~~$8.5~~$10.2 billion and ~~$3.5~~$4.5 billion, respectively. ~~See Corporate Items and Eliminations for a discussion of items not allocated to this segment.~~

Energy Management revenues of $7.6 billion increased $0.2 billion, or 2%, in 2013 as higher volume ($0.2 billion) was partially offset by the effects of the stronger U.S. dollar ($0.1 billion).

Segment profit of $0.1 billion decreased 16% in 2013 as a result of lower productivity ($0.1 billion).

Energy Management revenues of $7.4 billion increased $1.0 billion (including $1.0 billion from acquisitions), or 15%, in 2012 as higher volume ($1.1 billion), primarily driven by acquisitions, higher prices ($0.1 billion) and increased other income ($0.1 billion) were partially offset by the effects of the stronger U.S. dollar ($0.2 billion).

Segment profit of $0.1 billion increased $0.1 billion, or 68%, in 2012 as a result of higher prices ($0.1 billion) and increased other income ($0.1 billion).

Energy Management orders increased 12% to $8.8 billion in 2013. Total Energy Management backlog increased 20% to $4.6 billion at December 31, 2013, composed of equipment backlog of $3.6 billion and services backlog of $1.0 billion. Comparable December 31, 2012 equipment and service order backlogs were $3.2 billion and $0.6 billion, respectively.

Aviationrevenues of ~~$6.4~~$21.9 billion increased ~~$1.3~~$1.9 billion (including ~~$0.8~~$0.5 billion from acquisitions), or ~~24%~~10%, in ~~2011 as~~2013 due primarily to higher volume ($~~1.2 billion) mainly driven by acquisitions and the effects of the weaker U.S. dollar ($0.1~~1.4 billion) and higher prices ($~~0.1~~0.6 billion). Higher volume and higher prices were ~~partially offset~~driven by ~~decreased other income~~increased services revenues ($~~0.1~~0.7 billion) and equipment ($1.2 billion). The increase in services revenue was primarily due to higher commercial spares sales, while the increase in equipment revenue was primarily due to increased commercial engine shipments.

Segment profit of ~~$0.1~~$4.3 billion ~~decreased $0.1~~increased $0.6 billion, or ~~50%~~16%, in ~~2011~~2013 as ~~the results of inflation~~higher prices ($~~0.1~~0.6 billion), higher volume ($0.2 billion) and ~~decreased~~increased other income ($0.1 billion) were partially offset by ~~higher prices~~the effects of inflation ($0.2 billion) and lower productivity ($0.1 billion).

Energy Management segment orders increased 16% to $7.9 billion in 2012. Total Energy Management backlog increased 6% to $3.8 billion at December 31, 2012, composed of equipment backlog of $3.2 billion and services backlog of $0.6 billion. Comparable December 31, 2011 equipment and service order backlogs were $2.8 billion and $0.8 billion, respectively. See Corporate Items and Eliminations for a discussion of items not allocated to this segment.

(40)

Aviation revenues of $20.0 billion increased $1.1 billion, or 6%, in 2012 due primarily to higher prices ($0.8 billion) and higher volume ($0.4 billion), which were driven by increased commercial and military engine sales.

Segment profit of $3.7 billion increased $0.2 billion, or 7%, in 2012 ~~due primarily to~~as higher prices ($0.8 billion) and higher volume ($0.1 billion), were partially offset by higher inflation ($0.3 billion) and lower productivity ($0.3 billion).

Aviation orders increased 16% to $27.2 billion in 2013. Total Aviation backlog increased 22% to $125.1 billion at December 31, 2013, composed of equipment backlog of $28.4 billion and services backlog of $96.7 billion. Comparable December 31, 2012 equipment and service order backlogs were $22.9 billion and $79.5 billion, respectively.

Healthcare

~~(39)~~

~~Aviation~~ revenues of ~~$18.9~~$18.2 billion ~~increased $1.2~~decreased $0.1 billion ~~or 7%~~in 2013. Revenues decreased as lower prices ($0.3 billion), ~~in 2011 due primarily to~~the effects of the stronger U.S. dollar ($0.2 billion) and lower other income were partially offset by higher volume ($~~1.1~~0.5 billion) ~~and higher prices ($0.2 billion), partially offset by lower other income ($0.1 billion)~~. Higher volume and higher prices were driven by increased services ($0.9 billion) and equipment sales ($0.4 billion). The increase in services revenue was primarily due to higher commercial spares sales while the increase in equipment revenue was primarily due to commercial engines.

Segment profit of ~~$3.5~~$3.0 billion increased ~~$0.2~~$0.1 billion, or 6%4%, in ~~2011 due primarily to~~2013 as higher productivity ($0.6 billion), driven by SG&A cost reductions, and higher volume ($~~0.2~~0.1 billion) ~~and higher~~were partially offset by lower prices ($0.3 billion), the effects of inflation ($0.2 billion), ~~partially offset by higher inflation, primarily non-material related~~the stronger U.S. dollar ($0.1 billion), and lower other ~~income ($0.1 billion). Incremental research and development and GEnx product launch costs offset higher productivity.~~

Aviation equipment orders increased 8% to $13.0 billion in 2012. Total Aviation backlog increased 3% to $102.4 billion at December 31, 2012, composed of equipment backlog of $22.9 billion and services backlog of $79.5 billion. Comparable December 31, 2011 equipment and service order backlogs were $22.5 billion and $76.5 billion, respectively. See Corporate Items and Eliminations for a discussion of items not allocated to this segment.income.

Healthcare revenues of $18.3 billion increased $0.2 billion, or 1%, in 2012 ~~due to~~as higher volume ($0.8 billion) and other income ($0.1 billion), were partially offset by the stronger U.S. dollar ($0.4 billion) and lower prices ($0.3 billion). The revenue increase, driven by higher equipment sales, is attributable to international markets, with the strongest growth in emerging markets.

Segment profit of $2.9 billion increased $0.1 billion, or 4%, in 2012 ~~reflecting~~as increased productivity ($0.4 billion), higher volume ($0.1 billion) and other income ($0.1 billion), were partially offset by lower prices ($0.3 billion) and higher inflation ($0.2 billion), primarily non-material related.

Healthcare ~~revenues of $18.1 billion~~orders increased ~~$1.2 billion, or 7%, in 2011 due~~1% to higher volume ($1.0 billion) and the weaker U.S. dollar ($0.4 billion), partially offset by lower prices ($0.3 billion). The revenue increase was split between equipment sales ($0.7 billion) and services ($0.5 billion). Revenue increased in the U.S. and international markets, with the strongest growth in emerging markets.

~~Segment profit of $2.8 billion increased 2%, or $0.1~~$19.2 billion in 2011 reflecting increased productivity ($0.3 billion), higher volume ($0.2 billion) and the weaker U.S. dollar ($0.1 billion), partially offset by lower prices ($0.3 billion) and higher inflation ($0.1 billion), primarily non-material related.

~~Healthcare equipment orders increased 5% to $11.1 billion in 2012.~~2013. Total Healthcare backlog increased ~~15%~~5% to ~~$15.4~~$16.1 billion at December 31, ~~2012,~~2013, composed of equipment backlog of ~~$4.5~~$5.0 billion and services backlog of ~~$10.9~~$11.1 billion. Comparable December 31, ~~2011~~2012 equipment and service order backlogs were ~~$3.9~~$4.5 billion and ~~$9.6~~$10.9 billion, respectively. ~~See Corporate Items and Eliminations for a discussion of items not allocated to this segment.~~

Transportation revenues of $5.9 billion increased $0.3 billion, or 5%, in 2013 due to higher volume ($0.3 billion) primarily from acquisitions.

Segment profit of $1.2 billion increased $0.1 billion, or 13%, in 2013 as a result of effects of material deflation ($0.1 billion) and higher volume and productivity.

Transportation revenues of $5.6 billion increased $0.7 billion, or 15%, in 2012 due to higher volume ($0.6 billion) and higher prices ($0.1 billion). The revenue increase was split between equipment sales ($0.4 billion) and services ($0.3 billion). The increase in equipment revenue was primarily driven by an increase in U.S. locomotive sales and growth in our global mining equipment business. The increase in service revenue was due to higher overhauls and increased service productivity.

Segment profit of $1.0 billion increased $0.3 billion, or 36%, in 2012 as a result of higher volume ($0.1 billion), higher prices ($0.1 billion) and increased productivity ($0.1 billion), reflecting improved service margins.

~~(40)~~

Transportation ~~revenues of $4.9 billion increased $1.5 billion, or 45%, in 2011 due~~orders decreased 8% to higher volume ($1.5 billion) related to increased equipment sales ($0.9 billion) and services ($0.6 billion). The increase in equipment revenue was primarily driven by an increase in U.S. and international locomotive sales and growth in our global mining equipment business. The increase in service revenue was due to higher overhauls and increased service productivity.

Segment profit of $0.8 billion increased $0.4 billion, or over 100%, in 2011 as a result of increased productivity ($0.4 billion), reflecting improved service margins, and higher volume ($0.1 billion), partially offset by higher inflation ($0.1 billion).

~~Transportation equipment orders increased 35% to $3.0~~$5.1 billion in ~~2012.~~2013. Total Transportation backlog ~~decreased 5%~~increased 3% to ~~$14.4~~$14.9 billion at December 31, ~~2012,~~2013, composed of equipment backlog of ~~$3.3~~$2.5 billion and services backlog of ~~$11.1~~$12.4 billion. Comparable December 31, ~~2011~~2012 equipment and service order backlogs were $3.3 billion and ~~$11.8~~$11.1 billion, respectively. ~~See Corporate Items and Eliminations for a discussion of items not allocated to this segment.~~

(41)

~~Home~~Appliances & ~~Business Solutions~~Lighting revenues of $8.3 billion increased $0.4 billion, or 5%, in 2013 reflecting higher volume ($0.4 billion), primarily at Appliances.

Segment profit of $0.4 billion increased 23%, or $0.1 billion, in 2013 primarily due to improved productivity ($0.1 billion) and higher prices.

Appliances & Lighting revenues of $8.0 billion increased $0.3 billion, or 4%, in 2012 reflecting an increase at Appliances, partially offset by lower revenues at Lighting. Overall, revenues increased ~~primarily~~ as ~~a result of~~ higher prices ($0.3 billion) principally at Appliances were partially offset by lower volume ($0.1 billion).

Segment profit of $0.3 billion increased 31%, or $0.1 billion, in 2012 as higher prices ($0.3 billion) were partially offset by the effects of inflation ($0.2 billion) and lower productivity ($0.1 billion).

~~Home & Business Solutions~~

GE Capital
(In millions)		2013		2012		2011

Revenues	$	44,067	$	45,364	$	48,324
Segment profit	$	8,258	$	7,345	$	6,480

December 31 (In millions)	2013		2012

Total assets	$	516,829	$	539,351

(In millions)		2013		2012		2011

Revenues
Commercial Lending and Leasing (CLL)	$	14,316	$	16,458	$	17,714
Consumer		15,741		15,303		16,487
Real Estate		3,915		3,654		3,712
Energy Financial Services		1,526		1,508		1,223
GE Capital Aviation Services (GECAS)		5,346		5,294		5,262

Segment profit (loss)
CLL	$	1,965	$	2,401	$	2,703
Consumer		4,319		3,207		3,616
Real Estate		1,717		803		(928)
Energy Financial Services		410		432		440
GECAS		896		1,220		1,150

December 31 (In millions)		2013		2012

Total assets
CLL	$	174,357	$	181,375
Consumer		132,236		138,002
Real Estate		38,744		46,247
Energy Financial Services		16,203		19,185
GECAS		45,876		49,420

GE Capital 2013 revenues decreased 3% and net earnings increased 12% compared with 2012. Revenues for 2013 included $0.1 billion from acquisitions and $0.1 billion as a result of ~~$7.7 billion~~dispositions. Additionally, revenues decreased ~~$0.3 billion, or 3%, in 2011 reflecting~~as a ~~decrease at Appliances~~result of organic revenue declines, primarily due to lower ENI, and higher impairments, partially offset by higher ~~revenues at Lighting. Overall, revenues decreased primarily~~gains. Net earnings increased as a result of ~~lower volume ($0.4 billion) principally at Appliances,~~dispositions, primarily related to the sale of a portion of Cembra through an IPO and higher gains primarily related to the sale of our remaining equity interest in Bank of Ayudhya (Bay Bank), partially offset by ~~the weaker U.S. dollar ($0.1 billion)~~higher impairments and higher ~~prices.~~

~~Segment profit~~provisions for losses on financing receivables. GE Capital net earnings in 2013 also included restructuring, rationalization and other charges of $0.2 billion ~~decreased 41%, or $0.2~~and net losses of $0.1 billion related to our Treasury operations. GE Capital net earnings excluded $0.3 billion of preferred stock dividends declared in 2011 as the effects of inflation ($0.3 billion) were partially offset by the effects of the weaker U.S. dollar, increased productivity and higher prices. See Corporate Items and Elimination for a discussion of items not allocated to this segment.2013.

GE Capital

(In millions) 2012 2011 2010

Revenues $ 46,039 $ 49,068 $ 49,856
Segment profit $ 7,401 $ 6,584 $ 3,120

December 31 (In millions) 2012 2011

Total assets $ 539,223 $ 584,536

~~(41)~~(42)

(In millions) 2012 2011 2010

Revenues
   Commercial Lending and Leasing (CLL)
$ 16,857 $ 18,178 $ 18,447
   Consumer
15,579 16,767 17,180
   Real Estate
3,654 3,712 3,744
   Energy Financial Services
1,508 1,223 1,957
   GE Capital Aviation Services (GECAS)
5,294 5,262 5,127

Segment profit (loss)
   CLL $ 2,423 $ 2,720 $ 1,554
   Consumer
3,240 3,703 2,619
   Real Estate
803 (928) (1,741)
   Energy Financial Services
432 440 367
   GECAS
1,220 1,150 1,195

December 31 (In millions) 2012 2011

Total assets
   CLL $ 182,432 $ 193,869
   Consumer
138,997 138,534
   Real Estate
46,247 60,873
   Energy Financial Services
19,185 18,357
   GECAS
49,420 48,821

GE Capital 2012 revenues decreased 6% and net earnings increased ~~12% in 2012 as~~13% compared with 2011. Revenues for 2012 included $0.1 billion from acquisitions and were reduced by $0.6 billion as a result of dispositions. Revenues in 2012 also decreased as a result of organic ~~revenues~~revenue declines, primarily due to lower ENI, the stronger U.S. dollar, and the absence of the 2011 gain on sale of a substantial portion of our Garanti Bank equity investment (the Garanti Bank transaction). Net earnings increased by ~~$0.8~~$0.9 billion in 2012, primarily due to lower impairments and core increases, including higher tax benefits, partially offset by the absence of the 2011 gain on the Garanti Bank transaction and operations. GE Capital net earnings in 2012 also included restructuring, rationalization and other charges of $0.1 billion and net losses of $0.2 billion related to our Treasury operations. GE Capital net earnings excluded $0.1 billion of preferred stock dividends declared in 2012.

GE Capital revenues decreased 2% and net earnings increased favorably in 2011 as compared with 2010. Revenues for 2011 and 2010 included $0.3 billion and $0.2 billion, respectively, from acquisitions and were reduced by $1.1 billion and $2.3 billion, respectively, as a result of dispositions. Revenues also increased as a result of the gain on the Garanti Bank transaction, the weaker U.S. dollar and higher gains and investment income, partially offset by reduced revenues from lower ENI. Net earnings increased by $3.5 billion in 2011, primarily due to lower provisions for losses on financing receivables, the gain on the Garanti Bank transaction and lower impairments. GE Capital net earnings in 2011 also included restructuring, rationalization and other charges of $0.1 billion and net losses of $0.2 billion related to our Treasury operations.

Additional information about certain GE Capital businesses follows.

CLL 2013 revenues decreased 13% and net earnings decreased 18% compared with 2012. Revenues for 2013 were reduced by $0.1 billion as a result of dispositions. Revenues in 2013 also decreased as a result of organic revenue declines ($1.2 billion), primarily due to lower ENI ($0.8 billion), and higher impairments ($0.7 billion). Net earnings decreased reflecting higher impairments ($0.6 billion), partially offset by dispositions ($0.1 billion).

CLL 2012 revenues decreased 7% and net earnings decreased 11% compared with 2011. Revenues for 2012 were reduced by $0.4 billion as a result of dispositions. Revenues in 2012 also decreased as a result of organic revenue declines ($0.6 billion), primarily due to lower ENI ($~~0.6~~0.5 billion), and the stronger U.S. dollar ($~~0.3~~0.2 billion). Net earnings decreased reflecting core decreases ($0.2 billion) and dispositions ($0.1 billion).

~~(42)~~

~~CLL 2011~~Consumer 2013 revenues ~~decreased 1%~~increased 3% and net earnings increased ~~75%~~35% compared with ~~2010.~~2012. Revenues ~~decreased~~for 2013 included $0.1 billion from acquisitions and $0.3 billion as a result of dispositions. Revenues in 2013 also increased as a result of higher gains ($0.5 billion), partially offset by organic revenue declines ($~~1.1~~0.4 billion). The increase in net earnings resulted primarily from the sale of a portion of Cembra ($1.2 billion), ~~primarily due~~higher gains ($0.3 billion) related to ~~lower ENI,~~the sale of Bay Bank and core increases ($0.1 billion). These increases were partially offset by ~~the weaker U.S. dollar ($0.5 billion) and~~ higher ~~gains and investment income ($0.4 billion). Net earnings increased in 2011, reflecting lower~~ provisions for losses on financing receivables ($~~0.6~~0.5 billion)~~, higher gains~~ reflecting the use of a more granular portfolio segmentation approach, by loss type, in determining the incurred loss period and ~~investment income ($0.3 billion), core increases ($0.2 billion)~~projected net write-offs over the next 12 months in our installment and ~~lower impairments ($0.1 billion).~~revolving credit portfolios.

Consumer 2012 revenues decreased 7% and net earnings decreased ~~13%~~11% compared with 2011. Revenues for 2012 included $0.1 billion from acquisitions and were reduced by $0.1 billion as a result of dispositions. Revenues in 2012 also decreased as a result of the absence of the 2011 gain on the Garanti Bank transaction ($0.7 billion), the stronger U.S. dollar ($0.4 billion) and organic revenue declines ($0.2 billion). The decrease in net earnings resulted primarily from the absence of the 2011 gain on the Garanti Bank transaction and operations ($0.4 billion), ~~dispositions ($0.1 billion) and core decreases, which included~~ higher provisions for losses on financing receivables ($0.1 billion) and dispositions ($0.1 billion), partially offset by core increases ($0.2 billion). The higher provisions for losses on financing receivables reflected the use of a more granular portfolio segmentation approach, by loss type, in determining the incurred loss period in our U.S. Installment and Revolving Credit portfolio.

~~Consumer 2011~~

Real Estate 2013 revenues ~~decreased 2%~~increased 7% and net earnings ~~increased 41%~~were favorable compared with ~~2010.~~2012. Revenues ~~included $0.3 billion from acquisitions and were reduced by $0.4 billion~~in 2013 increased primarily as a result of ~~dispositions. Revenues~~increases in ~~2011 also decreased $0.3 billion as a result~~net gains on property sales ($1.1 billion) mainly due to the sale of real estate comprising certain floors located at 30 Rockefeller Center, New York, partially offset by organic revenue declines ($~~1.4~~0.7 billion), primarily due to lower ENI ~~and higher impairments~~ ($~~0.1~~0.6 billion)~~, partially offset by the gain~~. Real Estate net earnings increased as a result of core increases ($0.9 billion) including increases in net gains on ~~the Garanti Bank transaction~~property sales ($0.7 ~~billion), the weaker U.S. dollar ($0.5~~ billion) and higher ~~gains~~tax benefits ($~~0.1~~0.3 billion). ~~The increase~~Depreciation expense on real estate equity investments totaled $0.6 billion and $0.8 billion in ~~net earnings resulted primarily from lower provisions for losses on financing receivables ($1.0 billion), the gain on the Garanti Bank transaction ($0.3 billion), acquisitions ($0.1 billion)~~2013 and ~~the weaker U.S. dollar ($0.1 billion), partially offset by lower Garanti results ($0.2 billion), and core decreases ($0.2 billion).~~2012, respectively.

(43)

Real Estate 2012 revenues decreased 2% and net earnings were favorable compared with 2011. Revenues in 2012 decreased as a result of organic revenue declines ($0.2 billion), primarily due to lower ENI, and the stronger U.S. dollar ($0.1 billion), partially offset by increases in net gains on property sales ($0.2 billion). Real Estate net earnings increased as a result of lower impairments ($0.7 billion), core increases ($0.7 billion) including higher tax benefits of $0.5 billion, lower provisions for losses on financing receivables ($0.2 billion) and increases in net gains on property sales ($0.1 billion). Depreciation expense on real estate equity investments totaled $0.8 billion and $0.9 billion in 2012 and 2011, respectively.

~~Real Estate 2011~~Energy Financial Services 2013 revenues ~~decreased~~increased 1% and net earnings ~~increased 47%~~decreased 5% compared with ~~2010.~~2012. Revenues ~~decreased~~in 2013 increased as a result of dispositions ($0.1 billion) and organic revenue ~~declines~~growth ($~~0.4~~0.1 billion), ~~primarily due to lower ENI, were~~ partially offset by ~~increases~~lower gains ($0.1 billion) and higher impairments. The decrease in net earnings resulted primarily from lower gains ~~on property sales ($0.2 billion) and the weaker U.S. dollar~~ ($0.1 billion)~~. Real Estate net earnings increased compared with 2010, as lower impairments ($0.7 billion)~~, ~~a decrease in provisions for losses on financing receivables ($0.4 billion) and increases in net gains on property sales ($0.2 billion) were~~ partially offset by core ~~declines ($0.4 billion). Depreciation expense on real estate equity investments totaled $0.9 billion~~increases and ~~$1.0 billion in 2011 and 2010, respectively.~~dispositions.

Energy Financial Services 2012 revenues increased 23% and net earnings decreased 2% compared with 2011. Revenues in 2012 increased primarily as a result of organic revenue growth ($0.3 billion), including the consolidation of an entity involved in power generating activities and asset sales by investees, and higher gains.

~~Energy Financial Services 2011~~GECAS 2013 revenues ~~decreased 38%~~increased 1% and net earnings ~~increased 20%~~decreased 27% compared with ~~2010.~~2012. Revenues ~~decreased primarily~~in 2013 increased as a result of ~~the deconsolidation of Regency Energy Partners L.P. (Regency) ($0.7 billion)~~lower finance lease impairments and ~~organic revenue declines ($0.3 billion), primarily from an asset sale in 2010 by an investee. These decreases were partially offset by~~ higher ~~gains ($0.2 billion).~~gains. The ~~increase~~decrease in net earnings resulted primarily from higher ~~gains~~equipment leased to others (ELTO) impairments ($~~0.2~~0.3 billion), related to our operating lease portfolio of commercial aircraft, and core decreases, partially offset by ~~the deconsolidation of Regency ($0.1 billion) and core decreases, primarily from an asset sale in 2010 by an investee.~~higher gains.

GECAS 2012 revenues increased 1% and net earnings increased 6% compared with 2011. Revenues in 2012 increased as a result of organic revenue growth ($0.2 billion) and higher gains, partially offset by higher impairments ($0.2 billion).

~~(43)~~

The increase in net earnings resulted primarily from core increases ($0.1 billion) and higher gains, partially offset by higher impairments ($0.1 billion).

GECAS 2011 revenues increased 3% and net earnings decreased 4% compared with 2010. Revenues for 2011 increased compared with 2010 as a result of organic revenue growth ($0.1 billion). The decrease in net earnings resulted primarily from core decreases ($0.1 billion), reflecting the 2010 benefit from resolution of the 2003-2005 IRS audit, partially offset by lower impairments ($0.1 billion).

Corporate Items and Eliminations

(In millions)		2012		2011		2010		2013		2012		2011

Revenues
NBCU/NBCU LLC	$	1,615	$	5,686	$	16,901	$	1,528	$	1,615	$	5,686
Gains (losses) on disposed or held for sale businesses		186		-		105		453		186		-
Eliminations and other		(3,292)		(2,691)		(2,511)		(3,605)		(3,292)		(2,693)
Total	$	(1,491)	$	2,995	$	14,495	$	(1,624)	$	(1,491)	$	2,993

Operating profit (cost)
NBCU/NBCU LLC		1,615		4,535		2,261	$	1,528	$	1,615	$	4,535
Gains (losses) on disposed or held for sale businesses		186		-		105		447		186		-
Principal retirement plans(a)		(3,098)		(1,898)		(493)		(3,222)		(3,098)		(1,898)
Unallocated corporate and other costs		(3,545)		(2,924)		(2,886)		(5,053)		(3,544)		(2,925)
Total	$	(4,842)	$	(287)	$	(1,013)	$	(6,300)	$	(4,841)	$	(288)

(a)

Included non-operating pension income (cost) for our principal pension plans (non-GAAP) of $(2.6) billion, $(2.1) billion and $(1.1) billion in 2013, 2012 and ~~$0.3 billion in 2012,~~ 2011, ~~and 2010,~~ respectively, which includes expected return on plan assets, interest costs and non-cash amortization of actuarial gains and losses.

Revenues in 2013 decreased $0.1 billion from 2012. This decrease was primarily a result of $0.1 billion lower income related to the operations and disposition of NBCU LLC, a $0.1 billion pre-tax loss related to the impairment of an investment in a Brazilian company and $0.2 billion of lower revenues related to a plant that was sold in 2012, partially offset by $0.3 billion of higher gains from disposed businesses. The higher gains from disposed businesses reflect the net effect of $0.5 billion of gains from industrial business dispositions in 2013 compared with a $0.3 billion gain on joint venture formation and a $0.1 billion loss on sale of a plant in 2012.

(44)

Operating costs in 2013 increased $1.5 billion from 2012. Costs increased primarily as a result of $1.3 billion of higher restructuring and other charges, $0.2 billion of higher GECC preferred stock dividends, $0.1 billion of higher principal retirement plan costs, $0.1 billion of lower NBCU related income and $0.1 billion of impairment referred to above, partially offset by $0.3 billion of higher gains on disposed businesses.

Revenues ~~of $(1.5) billion~~ decreased $4.5 billion in 2012 as $4.1 billion of lower NBCU/NBCU LLC related revenues (primarily due to the non-repeat of the pre-tax gain on the NBCU transaction and the deconsolidation of NBCU in 2011, partially offset by higher earnings at NBCU LLC due to a gain on disposition in 2012) and $0.1 billion of pre-tax losses related to the sale of a plant in the U.K. were partially offset by $0.3 billion of gains on the formation of a joint venture at Aviation.

Operating costs ~~of $4.8 billion~~in 2012 increased $4.6 billion ~~in 2012~~from 2011. Costs increased primarily as a result of $2.9 billion of lower NBCU/NBCU LLC related earnings (primarily due to the non-repeat of the 2011 gain related to the NBCU transaction, partially offset by earnings at NBCU LLC due to a gain on disposition in 2012), $1.2 billion of higher costs of our principal retirement plans and $0.4 billion of higher research and development spending and global corporate costs, ~~were~~ partially offset by $0.2 billion of lower restructuring and other charges.

Revenues of $3.0 billion decreased $11.5 billion in 2011 as a $14.9 billion reduction in revenues from NBCU LLC operations resulting from the deconsolidation of NBCU effective January 28, 2011 and $0.1 billion of lower revenues from other disposed businesses were partially offset by a $3.7 billion pre-tax gain related to the NBCU transaction. Operating costs of $0.3 billion decreased by $0.7 billion in 2011 as $3.6 billion of higher gains from disposed businesses, primarily the NBCU transaction, and a $0.6 billion decrease in restructuring, rationalization, acquisition-related and other charges were partially offset by $1.4 billion of higher costs of our principal retirement plans, $1.4 billion of lower earnings from NBCU/NBCU LLC operations and a $0.6 billion increase in research and development spending and global corporate costs.

Certain amounts included in ~~Corporate~~corporate items and eliminations cost are not allocated to GE operating segments because they are excluded from the measurement of their operating performance for internal purposes. These costs include certain restructuring and other charges, technology and product development costs and acquisition-related costs. For 2013, these amounts totaled $2.4 billion, including Power & Water ($0.4 billion), Oil & Gas ($0.3 billion), Energy Management ($0.2 billion), Aviation ($0.6 billion), Healthcare ($0.6 billion), Transportation ($0.1 billion) and Appliances & Lighting ($0.2 billion). In 2013, Corporate items and eliminations also included $0.5 billion of gains from business disposition including Power & Water ($0.1 billion), Oil & Gas ($0.1 billion) and Healthcare ($0.2 billion).

For 2012, these amounts totaled $1.5 billion, including Power & Water ($0.2 billion), Oil & Gas ($0.1 billion), Energy Management ($0.2 billion), Aviation ($0.3 billion), Healthcare ($0.5 billion), Transportation ($0.1 billion) and Appliances & Lighting ($0.1 billion). In 2012, Corporate items and eliminations also included $0.3 billion of ~~gain~~gains related to formation of a joint venture at ~~Aviation and $0.5~~Aviation.

For 2011, these amounts totaled $1.5 billion, ~~of costs at Healthcare, $0.3 billion of costs at Aviation, $0.2 billion of costs at each of~~including Power & Water ~~and Energy Management, and $0.1 billion of costs at each of~~($0.2 billion), Oil & Gas ~~Home~~($0.3 billion), Energy Management ($0.2 billion), Aviation ($0.2 billion), Healthcare ($0.4 billion), Transportation ($0.1 billion) and Appliances & ~~Business Solutions and Transportation, primarily for technology and product development costs and restructuring, rationalization and other charges.~~Lighting ($0.1 billion).

~~(44)~~

For 2011, these included $0.3 billion at Oil & Gas and $0.1 billion at Energy Management for acquisition-related costs and $0.4 billion at Healthcare, $0.2 billion at Power & Water, $0.2 billion at Aviation and $0.1 billion at each of Energy Management, Oil & Gas, Home & Business Solutions and Transportation, primarily for technology and product development costs and restructuring, rationalization and other charges. For 2010, these included $0.4 billion at Healthcare, $0.2 billion at Home & Business Solutions, and $0.1 billion at each of Energy Management, Power & Water and Aviation, primarily for technology and product development costs and restructuring, rationalization and other charges.

Discontinued Operations

(In millions)		2012		2011		2010		2013		2012		2011

Earnings (loss) from discontinued
operations, net of taxes	$	(1,038)	$	(76)	$	(969)	$	(2,120)	$	(983)	$	29

~~(47)~~(48)

We regularly review investment securities for impairment using both qualitative and quantitative criteria. For debt securities, our qualitative review considers our intent to sell the security and the financial health of and specific prospects for the issuer, including whether the issuer is in compliance with the terms and covenants of the security. Our quantitative review considers whether there has been an adverse change in expected future cash flows. Unrealized losses are not indicative of the amount of credit loss that would be recognized. We presently do not intend to sell the vast majority of our debt securities that are in an unrealized loss position and believe that it is not more likely than not that we will be required to sell the vast majority of these securities before recovery of our amortized cost. For equity securities, we consider the length of time and magnitude of the amount that each security is in an unrealized loss position. We believe that the unrealized loss associated with our equity securities will be recovered within the foreseeable future. Uncertainty in the capital markets may cause increased levels of other-than-temporary impairments. For additional information relating to how credit losses are calculated, see Note 3 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

Our RMBS portfolio is collateralized primarily by pools of individual, direct mortgage loans (a majority of which were originated in 2006 and 2005), not other structured products such as collateralized debt obligations. ~~Substantially all~~The vast majority of our RMBS are in a senior position in the capital structure of the deals and more than 70% are agency bonds or insured by Monoline insurers (Monolines) (on which we continue to place reliance). Of our total RMBS portfolio at ~~both~~ December 31, 2013 and 2012, approximately $0.4 billion and ~~2011, approximately~~ $0.5 billion, respectively, relates to residential subprime credit, primarily supporting our guaranteed investment contracts. A majority of this exposure is related to investment securities backed by mortgage loans originated in 2006 and 2005. Substantially all of the subprime RMBS were investment grade at the time of purchase and approximately 70% have been subsequently downgraded to below investment grade.

Our CMBS portfolio is collateralized by both diversified pools of mortgages that were originated for securitization (conduit CMBS) and pools of large loans backed by ~~high quality~~high-quality properties (large loan CMBS), athe majority of which were originated in 2007 and 2006. The vast majority of the securities in our CMBS portfolio have ~~investment grade~~investment-grade credit ratings and the vast majority of the securities are in a senior position in the capital structure of the deals.

Our ABS portfolio is collateralized by senior secured loans of high-quality, middle-market companies in a variety of industries, as well as a variety of diversified pools of assets such as student loans and credit cards. The vast majority of the securities in our ABS portfolio are in a senior position in the capital structure of the deals. In addition, substantially all of the securities that are below investment grade are in an unrealized gain position.

If there has been an adverse change in cash flows for RMBS, management considers credit enhancements such as Monoline insurance (which are features of a specific security). In evaluating the overall creditworthiness of the Monoline, we use an analysis that is similar to the approach we use for corporate bonds, including an evaluation of the sufficiency of the Monoline’s cash reserves and capital, ratings activity, whether the Monoline is in default or default appears imminent, and the potential for intervention by an insurance or other regulator.

Monolines provide credit enhancement for certain of our investment securities, primarily RMBS and municipal securities. The credit enhancement is a feature of each specific security that guarantees the payment of all contractual cash flows, and is not purchased separately by GE. The Monoline industry continues to experience financial stress from increasing delinquencies and defaults on the individual loans underlying insured securities. We continue to rely on Monolines with adequate capital and claims paying resources. We have reduced our reliance on Monolines that do not have adequate capital or have experienced regulator intervention. At December 31, ~~2012,~~2013, our investment securities insured by Monolines on which we continue to place reliance were ~~$1.4~~$1.0 billion, including ~~$0.2~~$0.3 billion of our ~~$0.5~~$0.4 billion investment in subprime RMBS. At December 31, ~~2012,~~2013, the unrealized loss associated with securities subject to Monoline credit enhancement, for which there is an expected credit loss, was ~~$0.2~~$0.1 billion.

Total pre-tax, other-than-temporary impairment losses during 2013 were $0.8 billion, which was recognized in earnings and primarily relates to credit losses on corporate debt securities and other-than-temporary losses on equity securities and an insignificant amount primarily relates to non-credit-related losses on RMBS and is included within accumulated other comprehensive income (AOCI).

(49)

Total pre-tax, other-than-temporary impairment losses during 2012 were $0.2 billion, of which $0.1 billion was recognized in earnings and primarily relates to credit losses on non-U.S. corporate, U.S. corporate and RMBS securities and other-than-temporary losses on equity securities and $0.1 billion primarily relates to ~~non-credit related~~non-credit-related losses on RMBS and is included within ~~accumulated other comprehensive income (AOCI).~~

~~(48)~~

Total pre-tax, other-than-temporary impairment losses during 2011 were $0.5 billion, of which $0.4 billion was recognized in earnings and primarily relates to credit losses on non-U.S. government and non-U.S. corporate securities and other-than-temporary losses on equity securities and $0.1 billion primarily relates to non-credit related losses on RMBS and is included within AOCI.

At December 31, ~~2012~~2013 and ~~December 31, 2011,~~2012, unrealized losses on investment securities totaled ~~$0.8~~$0.7 billion and ~~$1.6~~$0.8 billion, respectively, including ~~$0.8~~$0.4 billion and ~~$1.2~~$0.8 billion, respectively, aged 12 months or longer. Of the amount aged 12 months or longer at December 31, ~~2012,~~2013, more than ~~64%~~70% are debt securities that were considered to be investment grade by the major rating agencies. In addition, of the amount aged 12 months or longer, ~~$0.3~~$0.1 billion and ~~$0.4~~$0.2 billion related to structured securities (mortgage-backed and asset-backed) and corporate debt securities, respectively. With respect to our investment securities that are in an unrealized loss position, aged 12 months or longer at December 31, ~~2012,~~2013, the majority relate to debt securities held to support obligations to holders of GICs. We presently do not intend to sell the vast majority of our debt securities that are in an unrealized loss position and believe that it is not more likely than not that we will be required to sell these securities before recovery of our amortized cost. For additional information, see Note 3 to the consolidated financial statements in Part II, Item 8. ~~“Financial~~��Financial Statements and Supplementary Data” of this Form 10-K Report.

Fair ~~Value Measurements~~value measurements.. For financial assets and liabilities measured at fair value on a recurring basis, fair value is the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. Additional information about our application of this guidance is provided in Notes 1 and 21 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report. At December 31, ~~2012,~~2013, the aggregate amount of investments that are measured at fair value through earnings totaled ~~$5.1~~$3.2 billion and consisted primarily of various assets held for sale in the ordinary course of business, as well as equity investments.

Working capital,, representing GE current receivables and inventories, less GE accounts payable and progress collections, ~~increased $1.0~~decreased $0.7 billion at December 31, ~~2012,~~2013, compared to December 31, ~~2011~~2012 due to ~~an increase~~increases in ~~inventory~~accounts payable and ~~lower~~ progress collections, partially offset by ~~decreased accounts receivable.~~increases in current receivables and inventory. As Power & Water, Oil & Gas and Aviation deliver units out of their backlogs to fulfill commitments over the next few years, progress collections of ~~$10.9~~$13.2 billion at December 31, ~~2012,~~2013, will be earned, which, along with progress collections on new orders, will impact working capital. We discuss current receivables and inventories, two important elements of working capital, in the following paragraphs.

Current receivables, before allowance for losses, for GE totaled to ~~$10.9~~$11.4 billion at ~~the end of~~December 31, 2013 and $9.7 billion at December 31, 2012, and ~~$11.8 billion at the end of 2011, and~~ included ~~$7.9~~$7.4 billion due from customers at the end of ~~2012~~2013 compared with ~~$9.0~~$6.3 billion at the end of ~~2011.~~2012. GE current receivables turnover was ~~8.8~~9.9 in ~~2012,~~2013, compared with ~~8.3~~10.5 in ~~2011.~~2012. The overall increase in current receivables was primarily due to higher volume at Power & Water and Oil & Gas. See Note 4 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

Inventories for GE totaled ~~to $15.3~~$17.3 billion at December 31, ~~2012, up $1.6~~2013, an increase of $2.0 billion from ~~the end of 2011.~~2012. This increase reflected higher inventories ~~across all industrial segments.~~at Power & Water, Oil & Gas and Aviation to fulfill commitments and backlog. GE inventory turnover was 6.1 and 6.7 in 2013 and ~~7.0 in~~ 2012, ~~and 2011,~~ respectively. See Note 5 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

Financing receivables is our largest category of assets and represents one of our primary sources of revenues. Our portfolio of financing receivables is diverse and not directly comparable to major U.S. banks. A discussion of the quality of certain elements of the financing receivables portfolio follows.

(50)

Our consumer portfolio is composed primarily of non-U.S. mortgage, sales finance, auto and personal loans in various European and Asian countries and U.S. consumer credit card and sales finance receivables. In 2007, we exited the U.S. mortgage business and we have no U.S. auto or student loans.

~~(49)~~

Our commercial portfolio primarily comprises senior secured positions with comparatively low loss history. The secured receivables in this portfolio are collateralized by a variety of asset classes, which for our CLL business primarily include: industrial-related facilities and equipment, vehicles, corporate aircraft, and equipment used in many industries, including the construction, manufacturing, transportation, media, communications, entertainment, and healthcare industries. The portfolios in our Real Estate, GECAS and Energy Financial Services businesses are collateralized by commercial real estate, commercial aircraft and operating assets in the global energy and water industries, respectively. We are in a secured position for substantially all of our commercial portfolio.

Our risk management process includes standards and policies for reviewing major risk exposures and concentrations, and evaluates relevant data either for individual loans or financing leases, or on a portfolio basis, as appropriate.

Loans acquired in a business acquisition are recorded at fair value, which incorporates our estimate at the acquisition date of the credit losses over the remaining life of the portfolio. As a result, the allowance for losses is not carried over at acquisition. This may have the effect of causing lower reserve coverage ratios for those portfolios.

For purposes of the discussion that follows, “delinquent” receivables are those that are 30 days or more past due based on their contractual ~~terms;~~terms, and “nonearning” receivables are those that are 90 days or more past due (or for which collection is otherwise doubtful). Nonearning receivables exclude loans purchased at a discount (unless they have deteriorated post acquisition). ~~Under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 310,~~ ~~Receivables, these~~These loans are initially recorded at fair value and accrete interest income over the estimated life of the loan based on reasonably estimable cash flows even if the underlying loans are contractually delinquent at acquisition. In addition, nonearning receivables exclude loans that are paying on a cash accounting basis but are classified as nonaccrual and impaired. “Nonaccrual” financing receivables include all nonearning receivables and are those on which we have stopped accruing interest. We stop accruing interest at the earlier of the time at which collection of an account becomes doubtful or the account becomes 90 days past ~~due.~~due, with the exception of consumer credit card accounts, on which we accrue interest until the account becomes 180 days past due, as discussed below. 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.

(51)

Beginning in the fourth quarter of 2013, we revised our methods for classifying financing receivables as nonaccrual and nonearning to more closely align with regulatory guidance. Under the revised methods, we continue to accrue interest on consumer credit cards until the accounts are written off in the period the account becomes 180 days past due. Previously, we stopped accruing interest on consumer credit cards when the account became 90 days past due. In addition, the revised methods limit the use of the cash basis of accounting for nonaccrual financing receivables.

As a result of these revisions, consumer credit card receivables of $1.1 billion that were previously classified as both nonaccrual and nonearning were returned to accrual status in the fourth quarter of 2013. In addition, $1.5 billion of Real Estate and CLL financing receivables previously classified as nonaccrual, paying in accordance with contractual terms and accounted for on the cash basis, were returned to accrual status, while $2.2 billion of financing receivables previously classified as nonaccrual and accounted for on the cash basis (primarily in Real Estate and CLL) were placed into the nonearning category based on our assessment of the short-term outlook for resolution through payoff or refinance. These changes had an insignificant effect on earnings.

Given that the revised methods result in nonaccrual and nonearning amounts that are substantially the same, we plan to discontinue the reporting of nonearning financing receivables, one of our internal performance metrics, and report selected ratios related to nonaccrual financing receivables in the first quarter of 2014.

Further information on the determination of the allowance for losses on financing receivables and the credit quality and categorization of our financing receivables is provided in the Critical Accounting Estimates section in this Item and Notes 1 6 and 236 to the consolidated financial ~~statements.~~

statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

~~(50)~~(52)

Financing receivables at Nonearning receivables at Allowance for losses at
December 31, December 31, December 31, December 31, December 31, December 31,
(In millions) 2012 2011 2012 2011 2012 2011

Commercial
CLL
Americas $ 72,517 $ 80,505 $ 1,333 $ 1,862 $ 490 $ 889
Europe 37,035 36,899 1,299 1,167 445 400
Asia 11,401 11,635 193 269 80 157
Other 605 436 52 11 6 4
Total CLL 121,558 129,475 2,877 3,309 1,021 1,450

Energy
  Financial

     Services
4,851 5,912 – 22 9 26

GECAS 10,915 11,901 – 55 8 17

Other 486 1,282 13 65 3 37
Total
  Commercial
137,810 148,570 2,890 3,451 1,041 1,530

Real Estate
Debt(a) 19,746 24,501 321 541 279 949
Business
  Properties(b)
1,200 8,248 123 249 41 140
Total Real Estate 20,946 32,749 444 790 320 1,089

Consumer
Non-U.S.
  residential

    mortgages(c)
33,451 35,550 2,569 2,870 480 546
Non-U.S.
    installment
      and revolving

        credit 18,546 18,544 224 263 623 717
U.S. installment
  and revolving

    credit
50,853 46,689 1,026 990 2,282 2,008
Non-U.S. auto 4,260 5,691 24 43 67 101
Other 8,070 7,244 351 419 172 199
Total Consumer 115,180 113,718 4,194 4,585 3,624 3,571
Total $ 273,936 $ 295,037 $ 7,528 $ 8,826 $ 4,985 $ 6,190

	Financing receivables at				Nonearning receivables at				Allowance for losses at
	December 31,		December 31,		December 31,		December 31,		December 31,		December 31,
(In millions)	2013		2012		2013		2012		2013		2012

Commercial
CLL
Americas	$	68,585	$	72,517	$	1,243	$	1,333	$	473	$	490
Europe(a)		37,962		37,037		1,046		1,299		415		445
Asia		9,469		11,401		413		193		90		80
Other(a)		451		603		-		52		-		6
Total CLL		116,467		121,558		2,702		2,877		978		1,021

Energy
Financial
Services		3,107		4,851		4		-		8		9

GECAS		9,377		10,915		-		-		17		8

Other		318		486		6		13		2		3
Total
Commercial		129,269		137,810		2,712		2,890		1,005		1,041

Real Estate		19,899		20,946		2,301		444		192		320

Consumer
Non-U.S.
residential
mortgages(b)		30,501		33,350		1,766		2,567		358		480
Non-U.S.
installment
and revolving
credit		13,677		17,816		88		213		594		582
U.S. installment
and revolving
credit		55,854		50,853		2		1,026		2,823		2,282
Non-U.S. auto		2,054		4,260		18		24		56		67
Other		6,953		8,070		345		351		150		172
Total Consumer		109,039		114,349		2,219		4,181		3,981		3,583
Total	$	258,207	$	273,105	$	7,232	$	7,515	$	5,178	$	4,944

(a)

~~Financing receivables included no construction loans at December 31, 2012 and $0.1 billion of construction loans at December 31, 2011.~~During 2013, we transferred our European equipment services portfolio from CLL Other to CLL Europe. Prior-period amounts were reclassified to conform to the current period presentation.

(b)

~~Our Business Properties portfolio is underwritten primarily by the credit quality~~Included financing receivables of ~~the borrower~~$12,025 million and ~~secured by tenant~~$12,221 million, nonearning receivables of $751 million and ~~owner-occupied commercial properties. In 2012, we completed the sale~~$1,036 million and allowance for losses of ~~a portion of our Business Properties portfolio.~~

~~(c)~~

At$139 million and $142 million at December 31, 2013 and 2012, respectively, primarily related to loans, net of credit insurance, ~~about 40% of our Consumer non-U.S. residential mortgage portfolio comprised loans with introductory, below market rates that are scheduled to adjust at future dates; with~~whose terms permitted interest-only payments and high loan-to-value ratios at inception (greater than 90%)~~; whose terms permitted interest-only payments; or whose terms resulted in negative amortization.~~. At origination, we underwrite loans with an adjustable rate to the reset value. Of these loans, about 85% are in our U.K. and France portfolios, which comprise mainly loans with interest-only payments, high loan-to-value ratios at inception and introductory below market rates, have a delinquency rate of ~~15%~~14%, have a loan-to-value ratio at origination of 82% and have re-indexed loan-to-value ratios of ~~91%~~84% and 64%, respectively. Re-indexed loan-to-value ratios may not reflect actual realizable values of future repossessions. At December 31, ~~2012, 10%~~2013, 11% (based on dollar values) of these loans in our U.K. and France portfolios have been restructured.

~~(51)~~(53)

The portfolio of financing receivables, before allowance for losses, was ~~$273.9~~$258.2 billion at December 31, ~~2012,~~2013, and ~~$295.0~~$273.1 billion at December 31, ~~2011.~~2012. Financing receivables, before allowance for losses, decreased ~~$21.1~~$14.9 billion from December 31, ~~2011,~~2012, primarily as a result of dispositions ($6.5 billion), write-offs ($~~6.6 billion), dispositions ($5.7~~5.9 billion), collections (which includes sales) exceeding originations ($~~5.4~~3.6 billion)~~, partially offset by~~ and the ~~weaker~~stronger U.S. dollar ($~~2.7~~1.7 billion).

Related nonearning receivables totaled ~~$7.5~~$7.2 billion ~~(2.7%~~(2.8% of outstanding receivables) at December 31, ~~2012,~~2013, compared with ~~$8.8~~$7.5 billion ~~(3.0%~~(2.8% of outstanding receivables) at December 31, ~~2011.~~2012. Nonearning receivables decreased from December 31, ~~2011,~~2012, primarily due to collections and write-offs at CLL ~~write-offs~~ and ~~discounted payoffs at Real Estate~~the placing of consumer credit card accounts on accrual status, partially offset by nonearning receivables previously classified as cash basis resulting from a revision to our nonaccrual and ~~improved economic conditions~~nonearning methods to more closely align with regulatory guidance in ~~our non-U.S. residential mortgage portfolio.~~the fourth quarter of 2013.

The allowance for losses at December 31, ~~2012~~2013 totaled ~~$5.0~~$5.2 billion compared with ~~$6.2~~$4.9 billion at December 31, ~~2011,~~2012, representing our best estimate of probable losses inherent in the portfolio. Allowance for losses ~~decreased $1.2~~increased $0.2 billion from December 31, ~~2011,~~2012, primarily because provisions were ~~lower~~higher than write-offs, net of recoveries by ~~$1.1~~$0.4 billion, which is attributable to ~~a reduction~~an increase in ~~the overall financing receivables balance~~provision in our Consumer installment and ~~an improvement in the overall credit environment.~~revolving portfolios. The allowance for losses as a percent of total financing receivables ~~decreased~~increased from ~~2.1% at December 31, 2011 to~~ 1.8% at December 31, 2012 to 2.0% at December 31, 2013 primarily due to ~~a decrease~~an increase in the allowance for losses ~~as discussed above, partially offset by~~and a decline in the overall financing receivables balance as ~~collections exceeded originations.~~discussed above. Further information surrounding the allowance for losses related to each of our portfolios is detailed below.

~~(52)~~(54)

The following table provides information surrounding selected ratios related to nonearning financing receivables and the allowance for losses.

	Nonearning financing receivables				Allowance for losses				Allowance for losses				Nonearning financing receivables				Allowance for losses				Allowance for losses
	as a percent of				as a percent of				as a percent of				as a percent of				as a percent of				as a percent of
	financing receivables at				nonearning financing receivables at				total financing receivables at
December 31													financing receivables at				nonearning financing receivables at				total financing receivables at
	December 31,		December 31,		December 31,		December 31,		December 31,		December 31,
	2012		2011		2012		2011		2012		2011		2013		2012		2013		2012		2013		2012
Commercial
CLL
Americas	1.8	%	2.3	%	36.8	%	47.7	%	0.7	%	1.1	%	1.8	%	1.8	%	38.1	%	36.8	%	0.7	%	0.7	%
Europe	3.5		3.2		34.3		34.3		1.2		1.1		2.8		3.5		39.7		34.3		1.1		1.2
Asia	1.7		2.3		41.5		58.4		0.7		1.3		4.4		1.7		21.8		41.5		1.0		0.7
Other	8.6		2.5		11.5		36.4		1.0		0.9		–		8.6		–		11.5		–		1.0
Total CLL	2.4		2.6		35.5		43.8		0.8		1.1		2.3		2.4		36.2		35.5		0.8		0.8

Energy Financial Services	–		0.4		–		118.2		0.2		0.4
Energy
Financial
Services													0.1		–		200.0		–		0.3		0.2

GECAS	–		0.5		–		30.9		0.1		0.1		–		–		–		–		0.2		0.1

Other	2.7		5.1		23.1		56.9		0.6		2.9		1.9		2.7		33.3		23.1		0.6		0.6

Total Commercial	2.1		2.3		36.0		44.3		0.8		1.0		2.1		2.1		37.1		36.0		0.8		0.8

Real Estate													11.6		2.1		8.3		72.1		1.0		1.5
Debt	1.6		2.2		86.9		175.4		1.4		3.9
Business Properties	10.3		3.0		33.3		56.2		3.4		1.7

Total Real Estate	2.1		2.4		72.1		137.8		1.5		3.3

Consumer
Non-U.S.
residential mortgages	7.7		8.1		18.7		19.0		1.4		1.5
residential mortgages(a)													5.8		7.7		20.3		18.7		1.2		1.4
Non-U.S.
installment and
revolving credit	1.2		1.4		278.1		272.6		3.4		3.9		0.6		1.2		675.0		273.2		4.3		3.3
U.S. installment
and revolving credit	2.0		2.1		222.4		202.8		4.5		4.3		–		2.0		(b)		222.4		5.1		4.5
Non-U.S. auto	0.6		0.8		279.2		234.9		1.6		1.8		0.9		0.6		311.1		279.2		2.7		1.6
Other	4.3		5.8		49.0		47.5		2.1		2.7		5.0		4.3		43.5		49.0		2.2		2.1

Total Consumer	3.6		4.0		86.4		77.9		3.1		3.1		2.0		3.7		179.4		85.7		3.7		3.1

Total	2.7		3.0		66.2		70.1		1.8		2.1		2.8		2.8		71.6		65.8		2.0		1.8

(a)

Included nonearning financing receivables as a percent of financing receivables of 6.2% and 8.5%, allowance for losses as a percent of nonearning receivables of 18.5% and 13.7% and allowance for losses as a percent of total financing receivables of 1.2% and 1.2% at December 31, 2013 and December 31, 2012, respectively, primarily related to loans, net of credit insurance, whose terms permitted interest-only payments and high loan-to-value ratios at inception (greater than 90%). Compared to the overall Non-U.S. residential mortgage loan portfolio, the ratio of allowance for losses as a percent of nonearning financing receivables for these loans is lower, driven primarily by the higher mix of such products in the U.K. and France portfolios and as a result of the better performance and collateral realization experience in these markets.

(b)	Not meaningful.

Included below is a discussion of financing receivables, allowance for losses, nonearning receivables and related metrics for each of our significant portfolios.

CLL −– Americas. Nonearning receivables of ~~$1.3~~$1.2 billion represented ~~17.7%~~17.2% of total nonearning receivables at December 31, ~~2012.~~2013. The ratio of allowance for losses as a percent of nonearning receivables ~~decreased~~increased from ~~47.7% at December 31, 2011, to~~ 36.8% at December 31, 2012, to 38.1% at December 31, 2013, reflecting ~~an overall improvement in the credit quality of the remaining portfolio and an overall~~a decrease in nonearning receivables. The ratio of nonearning receivables as a percent of financing receivables ~~decreased from 2.3%~~remained constant at ~~December 31, 2011, to~~ 1.8% at December 31, ~~2012,~~2013 primarily due to ~~reduced~~decreased nonearning exposures in ~~most of~~ our industrial and consumer-facing portfolios, partially offset by ~~declines in overall financing receivables.~~our materials, media and Latin America portfolios. Collateral supporting these nonearning financing receivables primarily includes assets in the restaurant and hospitality, trucking and industrial equipment industries and corporate aircraft, and for our leveraged finance business, equity of the underlying businesses.

~~(53)~~(55)

CLL – Europe. Nonearning receivables of ~~$1.3~~$1.0 billion represented ~~17.3%~~14.5% of total nonearning receivables at December 31, ~~2012.~~2013. The ratio of allowance for losses as a percent of nonearning receivables ~~remained constant at~~increased from 34.3% at December 31, 2012 to 39.7% at December 31, 2013, reflecting ~~increases~~a decrease in nonearning receivables and allowance for losses in our Interbanca S.p.A. and ~~acquisition finance portfolios, offset by an increase in nonearning receivables in our Interbanca S.p.A. and~~ asset-backed lending ~~portfolios.~~portfolios primarily as a result of write-offs. The majority of our CLL – Europe nonearning receivables are attributable to the Interbanca S.p.A. portfolio, which was acquired in 2009. The loans acquired with Interbanca S.p.A. were recorded at fair value, which incorporates an estimate at the acquisition date of credit losses over their remaining life. Accordingly, these loans generally have a lower ratio of allowance for losses as a percent of nonearning receivables compared to the remaining portfolio. Excluding the nonearning loans attributable to the 2009 acquisition of Interbanca S.p.A., the ratio of allowance for losses as a percent of nonearning receivables increased from ~~55.9% at December 31, 2011, to~~ 58.4% at December 31, 2012, to 70.8% at December 31, 2013, primarily due to ~~an increase~~a decrease in ~~the allowance for losses~~nonearning receivables as a result of write-offs and sales in our acquisition finance ~~portfolio.~~and asset-backed lending portfolios. The ratio of nonearning receivables as a percent of financing receivables ~~increased~~decreased from ~~3.2% at December 31, 2011, to~~ 3.5% at December 31, 2012, to 2.8% at December 31, 2013, for the reasons described above. Collateral supporting these secured nonearning financing receivables are primarily equity of the underlying businesses for our Interbanca S.p.A. business and acquisition finance businesses, the purchased receivables for our asset-backed lending portfolio, and equipment for our equipment finance portfolio.

CLL – ~~Asia~~Asia.. Nonearning receivables of ~~$0.2~~$0.4 billion represented ~~2.6%~~5.7% of total nonearning receivables at December 31, ~~2012.~~2013. The ratio of allowance for losses as a percent of nonearning receivables decreased from ~~58.4% at December 31, 2011, to~~ 41.5% at December 31, 2012, to 21.8% at December 31, 2013, primarily due to ~~a decline~~an increase in ~~allowance for losses as a result of write-offs~~nonearning receivables in ~~Japan,~~Australia, South Korea and Thailand, partially offset by ~~collections~~restructuring activities and write-offs resulting in a reduction of nonearning receivables in our asset-based financing businesses in Japan. The ratio of nonearning receivables as a percent of financing receivables ~~decreased~~increased from ~~2.3% at December 31, 2011, to~~ 1.7% at December 31, 2012, to 4.4% at December 31, 2013, primarily due to ~~write-offs of~~increased nonearning receivables ~~related to~~mentioned above and a decline in financing receivables primarily in our asset-based financing businesses in ~~Japan.~~Japan and Australia. Collateral supporting these nonearning financing receivables is primarily ~~manufacturing equipment,~~ commercial real estate, manufacturing equipment and corporate ~~aircraft and assets in the auto industry.~~aircraft.

Real Estate – ~~Debt~~Debt.. Nonearning receivables of ~~$0.3~~$2.3 billion represented ~~4.3%~~31.8% of total nonearning receivables at December 31, ~~2012.~~2013. The ~~decrease~~increase in nonearning receivables from December 31, ~~2011,~~2012, was ~~driven~~ primarily due to $2.1 billion of financing receivables previously classified as cash basis resulting from a revision to our nonaccrual and nonearning methods to more closely align with regulatory guidance in the fourth quarter of 2013, partially offset by the resolution of North American multi-family and hotel nonearning loans, ~~across all asset classes~~as well as European retail and ~~European multi-family~~mixed-use loans through ~~write-offs,~~ payoffs, foreclosures and foreclosures, partially offset by new European retail nonearning loans. Write-offs increased by approximately $0.3 billion in the fourth quarter of 2012 due to a change in our write-off policies for collateral dependent loans, requiring write-offs for loans with specific reserves aged greater than 360 days.write-offs. The ratio of allowance for losses as a percent of nonearning receivables decreased from ~~175.4%~~72.1% to ~~86.9%~~8.3% reflecting ~~write-offs and resolution of~~the increase in nonearning loans as mentioned above. The ratio of allowance for losses as a percent of total financing receivables decreased from ~~3.9% at December 31, 2011 to 1.4%~~1.5% at December 31, 2012 to 1.0% at December 31, 2013, driven primarily by the ~~write-offs mentioned above~~reduction in overall reserves due to improving market conditions and ~~transactional events such as settlements and payoffs from impaired~~new loan ~~borrowers and improvement~~originations in ~~collateral values.~~2013.

The Real Estate financing receivables portfolio is collateralized by income-producing or owner-occupied commercial properties across a variety of asset classes and markets. At December 31, ~~2012,~~2013, total Real Estate financing receivables of ~~$20.9~~$19.9 billion were primarily collateralized by office buildings ($~~5.2~~5.9 billion), apartment buildings ($~~3.4~~3.2 billion), retail facilities ($2.8 billion), warehouse properties ($2.6 billion) and hotel properties ($~~3.2 billion) and retail facilities ($2.9~~2.2 billion). In ~~2012,~~2013, commercial real estate markets continue to show signs of improved stability and liquidity in certain markets; however, the pace of improvement varies significantly by asset class and market and the long-term outlook remains uncertain. We have and continue to maintain an intense focus on operations and risk management. Loan loss reserves related to our Real Estate–Debt financing receivables are particularly sensitive to declines in underlying property values. Assuming global property values decline an incremental 1% or 5%, and that decline occurs evenly across geographies and asset classes, we estimate incremental loan loss reserves would be required of less than $0.1 billion and approximately $0.2 billion, respectively. Estimating the impact of global property values on loss performance across our portfolio depends on a number of factors, including macroeconomic conditions, property level operating performance, local market dynamics and individual borrower behavior. As a result, any ~~sensitivity analyses or~~ attempts to forecast potential losses carry a high degree of imprecision and are subject to change. At December 31, ~~2012,~~2013, we had 94116 foreclosed commercial real estate properties totaling ~~$0.9~~$1.0 billion.

~~(54)~~(56)

Consumer − Non-U.S. residential ~~mortgages~~mortgages. . Nonearning receivables of ~~$2.6~~$1.8 billion represented ~~34.1%~~24.4% of total nonearning receivables at December 31, ~~2012.~~2013. The ratio of allowance for losses as a percent of nonearning receivables ~~decreased~~increased from ~~19.0% at December 31, 2011, to~~ 18.7% at December 31, ~~2012. In the year ended~~ 2012, ~~our nonearning receivables decreased primarily~~to 20.3% at December 31, 2013, as a result of lower nonearning receivables due to improved ~~portfolio quality~~collections and higher property values primarily in ~~the~~our U.K. portfolio. Our non-U.S. mortgage portfolio has a loan-to-value ratio of approximately ~~76%~~75% at origination and the vast majority are first lien positions. Our U.K. and France portfolios, which comprise a majority of our total mortgage portfolio, have reindexed loan-to-value ratios of ~~83%~~77% and 56%, ~~respectively. About 6%~~respectively, and about 9% of these loans are without mortgage insurance and have a reindexed loan-to-value ratio equal to or greater than 100%. Re-indexed loan-to-value ratios may not reflect actual realizable values of future repossessions. Loan-to-value information is updated on a quarterly basis for a majority of our loans and considers economic factors such as the housing price index. At December 31, ~~2012,~~2013, we had in repossession stock ~~490~~447 houses in the U.K., which had a value of approximately $0.1 billion. The ratio of nonearning receivables as a percent of financing receivables decreased from ~~8.1% at December 31, 2011 to~~ 7.7% at December 31, 2012 to 5.8% at December 31, 2013 for the reasons described above.

Consumer − Non-U.S. installment and revolving ~~credit~~credit.. Nonearning receivables of ~~$0.2~~$0.1 billion represented ~~3.0%~~1.2% of total nonearning receivables at December 31, ~~2012.~~2013. The ratio of allowance for losses as a percent of nonearning receivables increased from ~~272.6% at December 31, 2011 to 278.1% at December 31, 2012~~, ~~reflecting lower nonearning receivables due to improved delinquencies, collections and write-offs primarily in Australia and New Zealand.~~

~~Consumer − U.S. installment and revolving credit~~. Nonearning receivables of $1.0 billion represented 13.6% of total nonearning receivables at December 31, 2012. The ratio of allowance for losses as a percent of nonearning receivables increased from 202.8% at December 31, 2011, to 222.4%273.2% at December 31, 2012 to 675.0% at December 31, 2013, reflecting an increase in the allowance for losses primarily due to the ~~use~~approach described below and a decrease in nonearning receivables reflect the placing of consumer credit card accounts on accrual status.

Consumer − U.S. installment and revolving credit. Nonearning receivables at December 31, 2013, reflect the placing of consumer credit card accounts on accrual status. The ratio of allowance for losses as a percent of financing receivables increased from 4.5% at December 31, 2012 to 5.1% at December 31, 2013, reflecting an increase in the allowance for losses primarily due to the approach described below.

In 2013, we completed our implementation of a more granular portfolio segmentation approach, by loss type, in determining the incurred loss period ~~partially offset by~~in our consumer revolving credit portfolios, which resulted in an increase to the incurred loss period and included a qualitative assessment of the adequacy of the consumer revolving credit portfolios’ allowance for losses, which compares this allowance for losses to projected net write-offs over the next 12 months, in a manner consistent with regulatory guidance. This resulted in an increase of $0.6 billion to the ~~nonearning receivables balance. The ratio of nonearning receivables as a percentage of~~allowance for losses on financing receivables ~~decreased from 2.1% at December 31, 2011~~($0.3 billion, after tax), the vast majority of which was attributable to ~~2.0% at December 31, 2012, primarily due to a higher financing receivables balance, partially offset by an increase in the nonearning receivables balance.~~our U.S. consumer revolving credit portfolios.

Nonaccrual Financing Receivables

The following table provides details related to our nonaccrual and nonearning financing receivables. Nonaccrual financing receivables include all nonearning receivables and are those on which we have stopped accruing interest. We stop accruing interest at the earlier of the time at which collection becomes doubtful or the account becomes 90 days past due, with the exception of consumer credit card accounts, as discussed below.

(57)

Substantially all of the differences between nonearning and nonaccrual financing receivables relate to loans ~~which~~that are classified as nonaccrual financing receivables but are paying on a cash accounting basis, and therefore excluded from nonearning receivables. Of our ~~$13.4~~$7.9 billion nonaccrual loans at December 31, ~~2012, $10.5~~2013, $4.2 billion are currently paying in accordance with their contractual terms. Further information on our nonaccrual and nonearning financing receivables is provided in Notes 1 and 6 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

	Nonaccrual		Nonearning		Nonaccrual financing				Nonearning financing
	financing		financing
December 31, 2012 (In millions)	receivables		receivables
December 31 (In millions)					receivables				receivables
						2013		2012		2013		2012
Commercial
CLL	$	4,138	$	2,877	$	2,734	$	4,138	$	2,702	$	2,877
Energy Financial Services		–		–		4		-		4		-
GECAS		3		–		-		3		-		-
Other		25		13		6		25		6		13
Total Commercial		4,166		2,890		2,744		4,166		2,712		2,890

Real Estate		4,885		444
Real Estate(a)						2,551		4,885		2,301		444

Consumer		4,301		4,194
Consumer(b)						2,620		4,288		2,219		4,181
Total	$	13,352	$	7,528	$	7,915	$	13,339	$	7,232	$	7,515

~~(55)~~

(a)	During the fourth quarter of 2013, we reclassified financing receivables of $1.0 billion from nonaccrual to accrual status and $2.1 billion from nonaccrual to nonearning, as discussed above.

(b)	During the fourth quarter of 2013, we reclassified consumer credit card receivables of $1.1 billion from both nonaccrual and nonearning to accrual status, as discussed above.

Impaired Loans

“Impaired” loans in the table below are defined as ~~larger balance~~larger-balance or restructured loans for which it is probable that the lender will be unable to collect all amounts due according to original contractual terms of the loan agreement. The vast majority of our Consumer and a portion of our CLL nonaccrual receivables are excluded from this definition, as they represent ~~smaller balance~~smaller-balance homogeneous loans that we evaluate collectively by portfolio for impairment.

Impaired loans include nonearning receivables on ~~larger balance~~larger-balance or restructured loans, loans that are currently paying interest under the cash basis (but are excluded from the nonearning category), and loans paying currently ~~but which have~~that had been previously restructured.

Specific reserves are recorded for individually impaired loans to the extent we have determined that it is probable that we will be unable to collect all amounts due according to original contractual terms of the loan agreement. Certain loans classified as impaired may not require a reserve because we believe that we will ultimately collect the unpaid balance (through collection or collateral repossession).

Further information pertaining to loans classified as impaired and specific reserves is included in the table below.

(58)


December 31 (In millions)	2012		2011		2013		2012

Loans requiring allowance for losses
Commercial(a)	$	1,372	$	2,357	$	1,116	$	1,372
Real Estate		2,202		4,957		1,245		2,202
Consumer		3,115		2,824		2,879		3,103
Total loans requiring allowance for losses		6,689		10,138		5,240		6,677

Loans expected to be fully recoverable
Commercial(a)		3,697		3,305		2,776		3,697
Real Estate		3,491		3,790		2,615		3,491
Consumer		105		69		109		105
Total loans expected to be fully recoverable		7,293		7,164		5,500		7,293
Total impaired loans	$	13,982	$	17,302	$	10,740	$	13,970

Allowance for losses (specific reserves)
Commercial(a)	$	487	$	812	$	328	$	487
Real Estate(b)		188		822
Real Estate						74		188
Consumer		674		680		567		673
Total allowance for losses (specific reserves)	$	1,349	$	2,314	$	969	$	1,348

Average investment during the period	$	16,269	$	18,167	$	12,347	$	16,262
Interest income earned while impaired(c)		751		733
Interest income earned while impaired(b)						626		750

(a)	Includes CLL, Energy Financial Services, GECAS and Other.

(b)	Specific reserves declined approximately $0.3 billion in 2012 attributable to a change in our write-off policies for collateral dependent loans, requiring write-offs for loans with specific reserves aged greater than 360 days.

~~(c)~~

Recognized principally on ~~a cash~~an accrual basis.

We regularly review our Real Estate loans for impairment using both quantitative and qualitative factors, such as debt service coverage and loan-to-value ratios. We ~~classify~~evaluate a Real Estate ~~loans as impaired~~loan for impairment when the most recent valuation reflects a projected loan-to-value ratio at maturity in excess of 100%, even if the loan is currently paying in accordance with its contractual terms.

Of our ~~$5.7~~$3.9 billion of impaired loans at Real Estate at December 31, ~~2012, $5.3~~2013, $3.6 billion are currently paying in accordance with the contractual terms of the loan and are typically loans where the borrower has adequate debt service coverage to meet contractual interest obligations. Impaired loans at CLL primarily represent senior secured lending positions.

~~(56)~~

Our impaired loan balance at December 31, ~~2012~~2013 and ~~2011,~~2012, classified by the method used to measure impairment was as follows.

December 31 (In millions)	2012		2011		2013		2012

Method used to measure impairment
Discounted cash flow	$	6,704	$	8,858	$	5,558	$	6,693
Collateral value		7,278		8,444		5,182		7,277
Total	$	13,982	$	17,302	$	10,740	$	13,970

~~(59)~~

exposures where appropriate. Uncertainties surrounding European markets could have an impact on the judgments and estimates used in determining the carrying value of these assets.

Included in other assets are Real Estate equity investments of ~~$20.7~~$13.7 billion and ~~$23.9~~$20.7 billion at December 31, ~~2012~~2013 and ~~December 31, 2011,~~2012, respectively. Our portfolio is diversified, both geographically and by asset type. We review the estimated values of our commercial real estate investments annually, or more frequently as conditions warrant. Based on the most recent valuation estimates available, the carrying value of our Real Estate investments exceeded their estimated value by about ~~$1.1~~$2.1 billion. This amount is subject to variation and dependent on economic and market conditions, changes in cash flow estimates and composition of our portfolio, including ~~sales such as our recently announced disposition of certain floors located at 30 Rockefeller Center, New York to an affiliate of NBCU.~~ sales. Commercial real estate valuations have shown signs of improved stability and liquidity in certain markets, primarily in the U.S.; however, the pace of improvement varies significantly by asset class and market. Accordingly, there continues to be risk and uncertainty surrounding commercial real estate values. Declines in estimated value of real estate below carrying amount result in impairment losses when the aggregate undiscounted cash flow estimates used in the estimated value measurement are below the carrying amount. As such, estimated losses in the portfolio will not necessarily result in recognized impairment losses. During ~~2012,~~2013, Real Estate recognized pre-tax impairments of ~~$0.1~~$0.3 billion in its real estate held for investment, which were primarily driven by declining cash flow projections for properties in Japan and Europe, as well as strategic decisions to sell portfolios in the U.S., Asia and Europe. During 2012, Real Estate recognized pre-tax impairments of $0.1 billion. Real Estate investments with undiscounted cash flows in excess of carrying value of 0% to 5% at December 31, ~~2012~~2013 had a carrying value of ~~$2.1~~$0.4 billion and an associated estimated unrealized loss of an insignificant amount. ~~Continued deterioration~~Deterioration in economic conditions or prolonged market illiquidity may result in further impairments being recognized. On March 19, 2013, in connection with GE’s sale of its remaining 49% interest in NBCUniversal LLC to Comcast Corporation, we sold real estate comprising certain floors located at 30 Rockefeller Center, New York and the CNBC property located in Englewood Cliffs, New Jersey to affiliates of NBCUniversal for $1.4 billion in cash.

(72)

At December 31, ~~2012,~~2013, consolidated variable interest entity assets and liabilities were ~~$48.4~~$49.3 billion and ~~$32.9~~$32.5 billion, respectively, an increase of ~~$1.7~~$0.9 billion and a decrease of ~~$2.3~~$0.4 billion from ~~2011, respectively.~~2012. Assets held by these entities are of equivalent credit quality to our other assets. We monitor the underlying credit quality in accordance with our role as servicer and apply rigorous controls to the execution of securitization transactions. With the exception of credit and liquidity support discussed below, investors in these entities have recourse only to the underlying assets.

~~(69)~~

At December 31, ~~2012,~~2013, investments in unconsolidated VIEs, ~~including our noncontrolling interest in PTL,~~ were ~~$12.6~~$12.5 billion, a decrease of ~~$3.9~~$0.2 billion from ~~2011,~~2012, primarily related to a decrease of ~~$5.0~~$2.0 billion in PTL, partially offset by an increase of ~~$1.0~~$1.9 billion in an investment in asset-backed securities issued by a senior secured loan fund. In the first quarter of 2013, PTL had repaid all outstanding debt owed and terminated its borrowing arrangement with GECC. During the second quarter of 2013, PTL ceased to be a VIE as a result of a principal in PTL retiring from the GE Board. Therefore, our investment in PTL ($899 million at December 31, 2013) is not reported in the December 31, 2013 balance. In addition to our existing investments, we have contractual obligations to fund additional investments in the unconsolidated VIEs to fund new asset origination. At December 31, ~~2012,~~2013, these contractual obligations were ~~$2.7~~$2.8 billion, ~~a decrease~~an increase of ~~$1.6~~$0.1 billion from ~~2011.~~2012.

We do not have implicit support arrangements with any VIE. We did not provide non-contractual support for previously transferred financing receivables to any VIE in either ~~2012~~2013 or ~~2011.~~2012.

Critical Accounting Estimates

Accounting estimates and assumptions discussed in this section are those that we consider to be the most critical to an understanding of our financial statements because they involve significant judgments and uncertainties. Many of these estimates include determining fair value. All of these estimates reflect our best judgment about current, and for some estimates future, economic and market conditions and their effects based on information available as of the date of these financial statements. If these conditions change from those expected, it is reasonably possible that the judgments and estimates described below could change, which may result in future impairments of investment securities, goodwill, intangibles and long-lived assets, incremental losses on financing receivables, increases in reserves for contingencies, establishment of valuation allowances on deferred tax assets and increased tax liabilities, among other effects. Also see Note 1 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report, which discusses the significant accounting policies that we have selected from acceptable alternatives.

Losses on financing receivables are recognized when they are incurred, which requires us to make our best estimate of probable losses inherent in the portfolio. The method for calculating the best estimate of losses depends on the size, type and risk characteristics of the related financing receivable. Such an estimate requires consideration of historical loss experience, adjusted for current conditions, and judgments about the probable effects of relevant observable data, including present economic conditions such as delinquency rates, financial health of specific customers and market sectors, collateral values (including housing price indices as applicable), and the present and expected future levels of interest rates. The underlying assumptions, estimates and assessments we use to provide for losses are updated periodically to reflect our view of current conditions and are subject to the regulatory examination process, which can result in changes to our assumptions. Changes in such estimates can significantly affect the allowance and provision for losses. It is possible that we will experience credit losses that are different from our current estimates. Write-offs in both our consumer and commercial portfolios can also reflect both losses that are incurred subsequent to the beginning of a fiscal year and information becoming available during that fiscal year ~~which~~that may identify further deterioration on exposures existing prior to the beginning of that fiscal year, and for which reserves could not have been previously recognized. Our risk management process includes standards and policies for reviewing major risk exposures and concentrations, and evaluates relevant data either for individual loans or financing leases, or on a portfolio basis, as appropriate.

Further information is provided in the Global Risk Management section and Financial Resources and Liquidity – Financing Receivables section of this Item, the Asset impairment section that follows and in Notes 1 6 and 236 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

~~(70)~~(73)

Revenue recognition on long-term product services agreements requires estimates of profits over the multiple-year terms of such agreements, considering factors such as the frequency and extent of future monitoring, maintenance and overhaul events; the amount of personnel, spare parts and other resources required to perform the services; and future billing rate and cost changes. We routinely review estimates under product services agreements and regularly revise them to adjust for changes in outlook. We also regularly assess customer credit risk inherent in the carrying amounts of receivables and contract costs and estimated earnings, including the risk that contractual penalties may not be sufficient to offset our accumulated investment in the event of customer termination. We gain insight into future utilization and cost trends, as well as credit risk, through our knowledge of the installed base of equipment and the close interaction with our customers that comes with supplying critical services and parts over extended periods. Revisions that affect a product services agreement’s total estimated profitability result in an adjustment of earnings; such adjustments increased earnings by $0.3 billion, $0.4 billion and $0.4 billion in 2013, 2012 ~~increased earnings by $0.4 billion in~~and 2011, ~~and decreased earnings by $0.2 billion in 2010.~~respectively. We provide for probable losses when they become evident.

Further information is provided in Notes 1 and 9 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

Asset impairment assessment involves various estimates and assumptions as follows:

Investments. We regularly review investment securities for impairment using both quantitative and qualitative criteria. For debt securities, if we do not intend to sell the security and it is not more likely than not that we will be required to sell the security before recovery of our amortized cost, we evaluate other qualitative criteria to determine whether a credit loss exists, such as the financial health of and specific prospects for the issuer, including whether the issuer is in compliance with the terms and covenants of the security. Quantitative criteria include determining whether there has been an adverse change in expected future cash flows. For equity securities, our criteria include the length of time and magnitude of the amount that each security is in an unrealized loss position. Our other-than-temporary impairment reviews involve our finance, risk and asset management functions as well as the portfolio management and research capabilities of our internal and third-party asset managers. See Note 1 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report, which discusses the determination of fair value of investment securities.

Further information about actual and potential impairment losses is provided in the Financial Resources and Liquidity – Investment Securities section of this Item and in Notes 1, 3 and 9 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

Long-Lived Assets. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Determining whether an impairment has occurred typically requires various estimates and assumptions, including determining which undiscounted cash flows are directly related to the potentially impaired asset, the useful life over which cash flows will occur, their amount, and the asset’s residual value, if any. In turn, measurement of an impairment loss requires a determination of fair value, which is based on the best information available. We derive the required undiscounted cash flow estimates from our historical experience and our internal business plans. To determine fair value, we use quoted market prices when available, our internal cash flow estimates discounted at an appropriate interest rate and independent appraisals, as appropriate.

~~(71)~~(74)

Our operating lease portfolio of commercial aircraft is a significant concentration of assets in GE Capital, and is particularly subject to market fluctuations. Therefore, we test recoverability of each aircraft in our operating lease portfolio at least annually. Additionally, we perform quarterly evaluations in circumstances such as when aircraft are re-leased, current lease terms have changed or a specific lessee’s credit standing changes. We consider market conditions, such as global demand for commercial aircraft. Estimates of future rentals and residual values are based on historical experience and information received routinely from independent appraisers. Estimated cash flows from future leases are reduced for expected downtime between leases and for estimated technical costs required to prepare aircraft to be redeployed. Fair value used to measure impairment is based on management's best estimate. In determining its best estimate, management evaluates average current market values (obtained from third parties) of similar type and age aircraft, which are adjusted for the attributes of the specific aircraft under lease.

We recognized impairment losses on our operating lease portfolio of commercial aircraft of $0.7 billion and $0.2 billion in 2013 and ~~$0.3 billion~~2012, respectively. Impairment losses in ~~2012~~2013 incorporated management’s downward revisions to cash flow estimates based upon shorter useful lives and ~~2011, respectively.~~lower aircraft residual values from those indicated by our third-party appraisers, reflecting the introduction of newer technology, fleet retirements and high fuel prices and operating costs. These revised estimates primarily related to cargo aircraft ($0.3 billion), older technology narrow-body aircraft ($0.2 billion) and regional jets ($0.1 billion). The average age of aircrafts we impaired in 2013 was 15 years compared with 7 years for our total fleet. Provisions for losses on financing receivables related to commercial aircraft were an insignificant amount for both ~~2012~~2013 and ~~2011.~~2012.

Further information on impairment losses and our exposure to the commercial aviation industry is provided in the Operations – Overview ~~section~~of Our Earnings from 2011 through 2013 and the Financial Resources and Liquidity – Property, plant and equipment sections of this Item and in Notes 7 and 2524 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

Real Estate. We review the estimated value of our commercial real estate investments annually, or more frequently as conditions warrant. The cash flow estimates used for both estimating value and the recoverability analysis are inherently judgmental, and reflect current and projected lease profiles, available industry information about expected trends in rental, occupancy and capitalization rates and expected business plans, which include our estimated holding period for the asset. Our portfolio is diversified, both geographically and by asset type. However, the global real estate market is subject to periodic cycles that can cause significant fluctuations in market values. Based on the most recent valuation estimates available, the carrying value of our Real Estate investments exceeded their estimated value by about ~~$1.1~~$2.1 billion. This amount is subject to variation dependent on the assumptions described above, changes in economic and market conditions and composition of our portfolio, including sales. Commercial real estate valuations have shown signs of improved stability and liquidity in certain markets, primarily in the U.S.; however, the pace of improvement varies significantly by asset class and market. Accordingly, there continues to be risk and uncertainty surrounding commercial real estate values. Declines in the estimated value of real estate below carrying amount result in impairment losses when the aggregate undiscounted cash flow estimates used in the estimated value measurement are below the carrying amount. As such, estimated losses in the portfolio will not necessarily result in recognized impairment losses. When we recognize an impairment, the impairment is measured using the estimated fair value of the underlying asset, which is based upon cash flow estimates that reflect current and projected lease profiles and available industry information about capitalization rates and expected trends in rents and occupancy and is corroborated by external appraisals. During ~~2012,~~2013, Real Estate recognized pre-tax impairments of ~~$0.1~~$0.3 billion in its real estate held for investment, as compared to ~~$1.2~~$0.1 billion in ~~2011. Continued deterioration~~2012. Deterioration in economic conditions or prolonged market illiquidity may result in further impairments being recognized. Furthermore, significant judgment and uncertainty related to forecasted valuation trends, especially in illiquid markets, ~~results~~result in inherent imprecision in real estate value estimates. Further information is provided in the Global Risk Management and the All other assets sections of this Item and in Note 9 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

~~(72)~~(75)

Goodwill and Other Identified Intangible Assets.We test goodwill for impairment annually in the third quarter of each year using data as of July 1 of that year. The impairment test consists of two steps: in step one, the carrying value of the reporting unit is compared with its fair value; in step two, which is applied when the carrying value is more than its fair value, the amount of goodwill impairment, if any, is derived by deducting the fair value of the reporting unit’s assets and ~~more frequently if circumstances warrant.~~liabilities from the fair value of its equity, and comparing that amount with the carrying amount of goodwill. We ~~determine~~determined fair values for each of the reporting units using ~~an income approach. When~~the market approach, when available and appropriate, or the income approach, or a combination of both. We assess the valuation methodology based upon the relevance and availability of the data at the time we ~~use comparative~~perform the valuation. If multiple valuation methodologies are used, the results are weighted appropriately.

Valuations using the market ~~multiples~~approach are derived from metrics of publicly traded companies or historically completed transactions of comparable businesses. The selection of comparable businesses is based on the markets in which the reporting units operate giving consideration to ~~corroborate discounted cash flow results. For purposes~~risk profiles, size, geography, and diversity of products and services. A market approach is limited to reporting units for which there are publicly traded companies that have the characteristics similar to our businesses.

Under the income approach, fair value is determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. We use our internal forecasts to estimate future cash flows and include an estimate of long-term future growth rates based on our most recent views of the long-term outlook for each business. Actual results may differ from those assumed in our forecasts. We derive our discount rates using a capital asset pricing model and analyzing published rates for industries relevant to our reporting units to estimate the cost of equity financing. We use discount rates that are commensurate with the risks and uncertainty inherent in the respective businesses and in our internally developed forecasts. Discount rates used in our reporting unit valuations ranged from 8.0% to ~~13.0%~~16.5%. ~~Valuations using the market approach reflect prices and other relevant observable information generated by market transactions involving comparable businesses.~~

Compared to the market approach, the income approach more closely aligns each reporting unit valuation to our business profile, including geographic markets served and product offerings. Required rates of return, along with uncertainty inherent in the forecasts of future cash flows, are reflected in the selection of the discount rate. Equally important, under this approach, reasonably likely scenarios and associated sensitivities can be developed for alternative future states that may not be reflected in an observable market price. A market approach allows for comparison to actual market transactions and multiples. It can be somewhat more limited in its application because the population of potential comparables is often limited to publicly traded companies where the characteristics of the comparative business and ours can be significantly different, market data is usually not available for divisions within larger conglomerates or non-public subsidiaries that could otherwise qualify as comparable, and the specific circumstances surrounding a market transaction (e.g., synergies between the parties, terms and conditions of the transaction, etc.) may be different or irrelevant with respect to our business. It can also be difficult, under certain market conditions, to identify orderly transactions between market participants in similar businesses. We assess the valuation methodology based upon the relevance and availability of the data at the time we perform the valuation and weight the methodologies appropriately.

Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. ~~If current conditions persist longer or deteriorate further than expected, it~~It is reasonably possible that the judgments and estimates described above could change in future periods.

We review identified intangible assets with defined useful lives and subject to amortization for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Determining whether an impairment loss occurred requires comparing the carrying amount to the sum of undiscounted cash flows expected to be generated by the asset. We test intangible assets with indefinite lives annually for impairment using a fair value method such as discounted cash flows. For our insurance activities remaining in continuing operations, we periodically test for impairment our deferred acquisition costs and present value of future profits.

Further information is provided in the Financial Resources and Liquidity – Goodwill and Other Intangible Assets section of this Item and in Notes 1 and 8 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

Pension assumptions are significant inputs to the actuarial models that measure pension benefit obligations and related effects on operations. Two assumptions – discount rate and expected return on assets – are important elements of plan expense and asset/liability measurement. We evaluate these critical assumptions at least annually on a plan and country-specific basis. We periodically evaluate other assumptions involving demographic factors such as retirement age, mortality and turnover, and update them to reflect our experience and expectations for the future. Actual results in any given year will often differ from actuarial assumptions because of economic and other factors.

~~(73)~~

Accumulated and projected benefit obligations are measured as the present value of expected payments. We discount those cash payments using the weighted average of market-observed yields for high-quality fixed-income securities with maturities that correspond to the payment of benefits. Lower discount rates increase present values and subsequent-year pension expense; higher discount rates decrease present values and subsequent-year pension expense.

(76)

Our discount rates for principal pension plans at December 31, 2013, 2012 and 2011 were 4.85%, 3.96% and ~~2010 were 3.96%,~~ 4.21% ~~and 5.28%~~, respectively, reflecting market interest rates.

To determine the expected long-term rate of return on pension plan assets, we consider current and target asset allocations, as well as historical and expected returns on various categories of plan assets. In developing future long-term return expectations for our principal benefit plans’ assets, we formulate views on the future economic environment, both in the U.S. and abroad. We evaluate general market trends and historical relationships among a number of key variables that impact asset class returns such as expected earnings growth, inflation, valuations, yields and spreads, using both internal and external sources. We also take into account expected volatility by asset class and diversification across classes to determine expected overall portfolio results given current and target allocations. Assets in our principal pension plans earned ~~11.7%~~14.6% in ~~2012,~~2013, and had average annual ~~earnings~~returns of ~~7.2%~~6.5%, ~~6.1%~~5.9% and 8.9% per year in the 10-, 15- and 25-year periods ended December 31, ~~2012,~~2013, respectively. These average historical returns were significantly affected by investment losses in 2008. Based on our analysis of future expectations of asset performance, past return results, and our current and target asset allocations, we have assumed ~~an 8.0%~~a 7.5% long-term expected return on those assets for cost recognition in ~~2013 compared to~~2014. This is a reduction from the 8.0% we assumed in ~~both~~2013, 2012 and ~~2011 and 8.5% in 2010.~~2011.

Changes in key assumptions for our principal pension plans would have the following effects.

·	Discount rate – A 25 basis point increase in discount rate would decrease pension cost in the following year by $0.2 billion and would decrease the pension benefit obligation at year-end by about ~~$2.0~~$1.7 billion.

·	Expected return on assets – A 50 basis point decrease in the expected return on assets would increase pension cost in the following year by $0.2 billion.

Further information on our pension plans is provided in the Operations – Overview section of this Item and in Note 12 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

~~(74)~~

Income Taxes. Our annual tax rate is based on our income, statutory tax rates and tax planning opportunities available to us in the various jurisdictions in which we operate. Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in determining our tax expense and in evaluating our tax positions, including evaluating uncertainties. We review our tax positions quarterly and adjust the balances as new information becomes available. Our income tax rate is significantly affected by the tax rate on our global operations. In addition to local country tax laws and regulations, this rate depends on the extent earnings are indefinitely reinvested outside the United States. Indefinite reinvestment is determined by management’s judgment about and intentions concerning the future operations of the Company. At December 31, 2013 and 2012, ~~and 2011,~~ approximately ~~$108~~$110 billion and ~~$102~~$108 billion of earnings, respectively, have been indefinitely reinvested outside the United States. Most of these earnings have been reinvested in active non-U.S. business operations, and we do not intend to repatriate these earnings to fund U.S. operations. Because of the availability of U.S. foreign tax credits, it is not practicable to determine the U.S. federal income tax liability that would be payable if such earnings were not reinvested indefinitely.

(77)

Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. Such assets arise because of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as from net operating loss and tax credit carryforwards. We evaluate the recoverability of these future tax deductions and credits by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely heavily on estimates. We use our historical experience and our short- and long-range business forecasts to provide insight. Further, our global and diversified business portfolio gives us the opportunity to employ various prudent and feasible tax planning strategies to facilitate the recoverability of future deductions. Amounts recorded for deferred tax assets related to non-U.S. net operating losses, net of valuation allowances, were $5.5 billion and $4.8 billion at December 31, 2013 and 2012, respectively, including $0.8 billion at both December 31, ~~2012~~2013 and ~~2011, including $0.8 billion and $0.9 billion at December 31,~~ 2012 ~~and 2011, respectively,~~ of deferred tax assets, net of valuation allowances, associated with losses reported in discontinued operations, primarily related to our loss on the sale of GE Money Japan. Such year-end ~~2012~~2013 amounts are expected to be fully recoverable within the applicable statutory expiration periods. To the extent we do not consider it more likely than not that a deferred tax asset will be recovered, a valuation allowance is established.

Further information on income taxes is provided in the Operations – Overview section of this Item and in Note 14 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

Derivatives and Hedging. We use derivatives to manage a variety of risks, including risks related to interest rates, foreign exchange and commodity prices. Accounting for derivatives as hedges requires that, at inception and over the term of the arrangement, the hedged item and related derivative meet the requirements for hedge accounting. The rules and interpretations related to derivatives accounting are complex. Failure to apply this complex guidance correctly will result in all changes in the fair value of the derivative being reported in earnings, without regard to the offsetting changes in the fair value of the hedged item.

In evaluating whether a particular relationship qualifies for hedge accounting, we test effectiveness at inception and each reporting period thereafter by determining whether changes in the fair value of the derivative offset, within a specified range, changes in the fair value of the hedged item. If fair value changes fail this test, we discontinue applying hedge accounting to that relationship prospectively. Fair values of both the derivative instrument and the hedged item are calculated using internal valuation models incorporating market-based assumptions, subject to third-party confirmation, as applicable.

At December 31, ~~2012,~~2013, derivative assets and liabilities were ~~$3.9~~$1.0 billion and ~~$0.3~~$1.3 billion, respectively. Further information about our use of derivatives is provided in Notes 1, 9, 21 and 22 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

~~(75)~~

Fair Value Measurements. Assets and liabilities measured at fair value every reporting period include investments in debt and equity securities and derivatives. Assets that are not measured at fair value every reporting period but that are subject to fair value measurements in certain circumstances include loans and long-lived assets that have been reduced to fair value when they are held for sale, impaired loans that have been reduced based on the fair value of the underlying collateral, cost and equity method investments and long-lived assets that are written down to fair value when they are impaired and the remeasurement of retained investments in formerly consolidated subsidiaries upon a change in control that results in deconsolidation of a subsidiary, if we sell a controlling interest and retain a noncontrolling stake in the entity. Assets that are written down to fair value when impaired and retained investments are not subsequently adjusted to fair value unless further impairment occurs.

(78)

A fair value measurement is determined as the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. The determination of fair value often involves significant judgments about assumptions such as determining an appropriate discount rate that factors in both risk and liquidity premiums, identifying the similarities and differences in market transactions, weighting those differences accordingly and then making the appropriate adjustments to those market transactions to reflect the risks specific to our asset being valued. Further information on fair value measurements is provided in Notes 1, 21 and 22 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

Other loss contingencies are uncertain and unresolved matters that arise in the ordinary course of business and result from events or actions by others that have the potential to result in a future loss. Such contingencies include, but are not limited to environmental obligations, litigation, regulatory proceedings, product quality and losses resulting from other events and developments.

When a loss is considered probable and reasonably estimable, we record a liability in the amount of our best estimate for the ultimate loss. When there appears to be a range of possible costs with equal likelihood, liabilities are based on the low-end of such range. However, the likelihood of a loss with respect to a particular contingency is often difficult to predict and determining a meaningful estimate of the loss or a range of loss may not be practicable based on the information available and the potential effect of future events and decisions by third parties that will determine the ultimate resolution of the contingency. Moreover, it is not uncommon for such matters to be resolved over many years, during which time relevant developments and new information must be continuously evaluated to determine both the likelihood of potential loss and whether it is possible to reasonably estimate a range of possible loss. When a loss is probable but a reasonable estimate cannot be made, disclosure is provided.

Disclosure also is provided when it is reasonably possible that a loss will be incurred or when it is reasonably possible that the amount of a loss will exceed the recorded provision. We regularly review all contingencies to determine whether the likelihood of loss has changed and to assess whether a reasonable estimate of the loss or range of loss can be made. As discussed above, development of a meaningful estimate of loss or a range of potential loss is complex when the outcome is directly dependent on negotiations with or decisions by third parties, such as regulatory agencies, the court system and other interested parties. Such factors bear directly on whether it is possible to reasonably estimate a range of potential loss and boundaries of high and low estimates.

Further information is provided in Notes 2, 13 and 2524 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

~~(76)~~(79)

Other Information

New Accounting Standards

In ~~January~~March 2013, the ~~FASB~~Financial Accounting Standards Board (FASB) issued ~~amendments to existing standards~~Accounting Standards Update (ASU) No. 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for ~~reporting comprehensive income.~~the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. The amendments expand disclosures about amounts that are reclassified out of accumulated comprehensive income during the reporting period. The amendments do not change existing recognition and measurement requirements that determine net earnings and are effective for our first quarter 2013 reporting.

~~In January 2013, the Emerging Issues Task Force reached a final consensus that~~ASU resolves conflicting guidance between ~~ASC~~Accounting Standards Codification (ASC) Subtopics 810-10, Consolidation,, and 830-30, Foreign Currency Matters – Translation of Financial Statements,~~, with regard to the release of~~ on whether accumulated currency translation adjustments should be released to earnings in certain circumstances. ~~The Task Force concluded that release upon substantial liquidation applies to events occurring~~Under the revised guidance, the entire amount of the cumulative translation adjustment associated with the foreign entity will be released into earnings in the following circumstances: (a) the sale of a subsidiary or group of net assets within a foreign entity ~~and~~ that represents a complete or substantially complete liquidation of that entity, (b) the loss of ~~control model applies~~a controlling financial interest in an investment in a foreign entity, or (c) when the accounting for an investment in a foreign entity changes from the equity method to ~~events related~~full consolidation. The ASU does not change the requirement to ~~investments~~release a pro rata portion of the cumulative translation adjustment of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. The revised guidance ~~will apply~~applies prospectively to transactions or events occurring in fiscal years beginning after December ~~15,~~31, 2013.

In December 2011, the FASB issued amendments to existing disclosure requirements for assets and liabilities that are offset in the statement of financial position, which are effective for the first quarter of 2013. In January 2013, the FASB clarified the scope of the amendments to limit application of the disclosure requirements to derivatives, repurchase agreements, reverse purchase agreements, securities borrowing and securities lending transactions that are presented on a net basis in the statement of financial position or are permitted to be netted under agreements with counterparties. The amendments require expanded disclosures about gross and net amounts of instruments that fall within the scope of the amendment.

Research and Development

GE-funded research and development expenditures were $4.7 billion, $4.5 billion and $4.6 billion in 2013, 2012 and ~~$3.9 billion in 2012,~~ 2011, ~~and 2010,~~ respectively. In addition, research and development funding from customers, principally the U.S. government, totaled $0.7 billion, $0.7 billion and $0.8 billion in 2013, 2012 and ~~$1.0 billion in 2012,~~ 2011, ~~and 2010,~~ respectively. Aviation accounts for the largest share of GE’s research and development expenditures with funding from both GE and ~~customer~~external funds. Power & Water and Healthcare also made significant expenditures funded primarily by GE.

Orders and Backlog

GE infrastructure equipment orders increased 3%14% to ~~$96.7~~$60.6 billion and services orders increased 1% to $43.8 billion at December 31, ~~2012.~~2013. Total GE infrastructure backlog increased 4%16% to ~~$209.5~~$244.1 billion at December 31, ~~2012,~~2013, composed of equipment backlog of ~~$52.7~~$63.9 billion and services backlog of ~~$156.8~~$180.2 billion. Orders constituting backlog may be cancelled or deferred by customers, subject in certain cases to penalties. See the Segment Operations section of this Item for further information.

~~(77)~~

Supplemental Information

Financial Measures that Supplement Generally Accepted Accounting Principles

We sometimes use information derived from consolidated financial information but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain of these data are considered “non-GAAP financial measures” under U.S. Securities and Exchange Commission rules. Specifically, we have referred, in various sections of this Form 10-K Report, to:

·	Industrial cash flows from operating activities (Industrial CFOA) and GE CFOA excluding the effects of NBCU deal-related taxes

·	Operating earnings, operating EPS, operating EPS excluding the effects of the 2011 preferred stock redemption and Industrial operating earnings

·	Operating and non-operating pension costs ~~(income)~~

·	~~Industrial segment organic revenues~~

·	Average GE shareowners’ equity, excluding effects of discontinued operations

·	Ratio of adjusted debt to equity at GECC, net of adjusted cash and equivalents and with classification of hybrid debt as equity

(80)

·	GE Capital ending net investment (ENI), excluding cash and equivalents

·	GE pre-tax earnings from continuing operations, excluding GECC earnings from continuing operations, the corresponding effective tax rates and the reconciliation of the U.S. federal statutory income tax rate to GE effective tax rate, excluding GECC earnings

The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures follow.

Industrial Cash Flows from Operating Activities (Industrial CFOA)

Industrial Cash Flows from Operating Activities (Industrial CFOA) and GE CFOA Excluding the Effects of NBCU Deal-Related Taxes											Industrial Cash Flows from Operating Activities (Industrial CFOA) and GE CFOA Excluding the Effects of NBCU Deal-Related Taxes
(In millions)		2012		2011		2010		2009		2008		2013		2012		2011		2010		2009

Cash from GE's operating
activities, as reported	$	17,826	$	12,057	$	14,746	$	16,405	$	19,138	$	14,255	$	17,826	$	12,057	$	14,746	$	16,405
Less dividends from GECC		6,426		–		–		–		2,351		5,985		6,426		-		-		-
Cash from GE's operating
activities, excluding dividends
from GECC (Industrial CFOA)	$	11,400	$	12,057	$	14,746	$	16,405	$	16,787	$	8,270	$	11,400	$	12,057	$	14,746	$	16,405

Cash from GE's operating
activities, as reported											$	14,255
Adjustment: effects of NBCU
deal-related taxes												3,184
GE CFOA excluding effects of NBCU
deal-related taxes											$	17,439

~~(78)~~

We refer to cash generated by our industrial businesses as "Industrial CFOA," which we define as GE’s cash from continuing operating activities less the amount of dividends received by GE from GECC. This includes the effects of intercompany transactions, including GE customer receivables sold to GECC; GECC services for trade receivables management and material procurement; buildings and equipment (including automobiles) leased between GE and GECC; information technology (IT) and other services sold to GECC by GE; aircraft engines manufactured by GE that are installed on aircraft purchased by GECC from third-party producers for lease to others; and various investments, loans and allocations of GE corporate overhead costs. We believe that investors may find it useful to compare GE’s operating cash flows without the effect of GECC dividends, since these dividends are not representative of the operating cash flows of our industrial businesses and can vary from period-to-period based upon the results of the financial services businesses. We also believe that investors may find it useful to compare Industrial CFOA excluding the effects of taxes paid related to the NBCU transaction. Management recognizes that ~~this measure~~these measures may not be comparable to cash flow results of companies ~~which~~that contain both industrial and financial services businesses, but believes that this comparison is aided by the provision of additional information about the amounts of dividends paid by our financial services business and the separate presentation in our financial statements of the Financial Services (GECC) cash flows. We believe that our ~~measure~~measures of Industrial CFOA ~~provides~~and CFOA excluding NBCU deal-related taxes provide management and investors with a useful ~~measure~~measures to compare the capacity of our industrial operations to generate operating cash flows with the operating cash flows of other non-financial businesses and companies and as such ~~provides a~~provide useful ~~measure~~measures to supplement the reported GAAP CFOA measure.

(81)

Operating Earnings, Operating EPS and Operating EPS Excluding the Effects of the 2011 Preferred Stock Redemption	Operating Earnings, Operating EPS and Operating EPS Excluding the Effects of the 2011 Preferred Stock Redemption						Operating Earnings, Operating EPS and Operating EPS Excluding the Effects of the 2011 Preferred Stock Redemption

(In millions; except earnings per share)	2012		2011		2010		2013		2012		2011			2010	2009

Earnings from continuing operations attributable to GE	$	14,679	$	14,227	$	12,613	$	15,177	$	14,624	$	14,122	$	12,577	$	10,993
Adjustment (net of tax): non-operating pension costs (income)		1,386		688		(205)		1,705		1,386		688		(204)		(967)
Operating earnings	$	16,065	$	14,915	$	12,408	$	16,882	$	16,010	$	14,810	$	12,373	$	10,026

Earnings per share – diluted(a)
Continuing earnings per share	$	1.39	$	1.24	$	1.15	$	1.47	$	1.38	$	1.23	$	1.15	$	1.00
Adjustment (net of tax): non-operating pension costs (income)		0.13		0.06		(0.02)		0.16		0.13		0.06		(0.02)		(0.09)
Operating earnings per share		1.52		1.31		1.13		1.64		1.51		1.30		1.13		0.91

Less: Effects of the 2011 preferred stock redemption		–		0.08		–		-		-		0.08		-		-
Operating EPS excluding the effects of the 2011 preferred stock
redemption	$	1.52	$	1.38	$	1.13	$	1.64	$	1.51	$	1.37	$	1.13	$	0.91

~~(80)~~(82)

Operating and Non-Operating Pension Costs
(In millions)	2013		2012		2011

Service cost for benefits earned	$	1,535	$	1,387	$	1,195
Prior service cost amortization		246		279		194
Operating pension costs		1,781		1,666		1,389

Expected return on plan assets		(3,500)		(3,768)		(3,940)
Interest cost on benefit obligations		2,460		2,479		2,662
Net actuarial loss amortization		3,664		3,421		2,335
Non-operating pension costs		2,624		2,132		1,057

Total principal pension plans costs	$	4,405	$	3,798	$	2,446

We have provided the operating and non-operating components of cost for our principal pension plans. Operating pension costs comprise the service cost of benefits earned and prior service cost amortization for our principal pension plans. Non-operating pension costs ~~(income)~~ comprise the expected return on plan assets, interest cost on benefit obligations and net actuarial loss amortization for our principal pension plans. We believe that the operating components of pension costs better reflect the ongoing service-related costs of providing pension benefits to our employees. We believe that the operating and non-operating components of cost for our principal pension plans, considered along with the corresponding GAAP measure, provide management and investors with additional information for comparison of our pension plan costs and operating results with the pension plan costs and operating results of other companies.

Industrial Segment Organic Revenues

(In millions) 2012 2011 V%

Consolidated revenues $ 147,359 $ 147,288
Less GE Capital revenues 46,039 49,068
Less Corporate items and eliminations (1,491) 2,995
Industrial segment revenues 102,811 95,225
Less the effects of:
   Acquisitions, business dispositions

   (other than dispositions of businesses

   acquired for investment) and currency

   exchange rates
972 1,112

Industrial revenues excluding the effects
   of acquisitions, business dispositions

   (other than dispositions of businesses

   acquired for investment) and currency

   exchange rates (industrial segment organic revenues)
$ 101,839 $ 94,113 8%

Organic revenue growth measures revenue excluding the effects of acquisitions, business dispositions and currency exchange rates. We believe that this measure provides management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and currency exchange, which activities are subject to volatility and can obscure underlying trends. We also believe that presenting organic revenue growth separately for our industrial segments provides management and investors with useful information about the trends of our industrial businesses and enables a more direct comparison to other non-financial businesses and companies. Management recognizes that the term “organic revenue growth” may be interpreted differently by other companies and under different circumstances. Although this may have an effect on comparability of absolute percentage growth from company to company, we believe that these measures are useful in assessing trends of the respective business or companies and may therefore be a useful tool in assessing period-to-period performance trends.

~~(81)~~

Average GE Shareowners' Equity, Excluding Effects of Discontinued Operations(a)	Average GE Shareowners' Equity, Excluding Effects of Discontinued Operations(a)										Average GE Shareowners' Equity, Excluding Effects of Discontinued Operations(a)

December 31 (In millions)		2012		2011		2010		2009		2008		2013		2012		2011		2010		2009

Average GE shareowners’
equity(b)	$	120,411	$	122,289	$	116,179	$	110,535	$	113,387	$	124,501	$	120,411	$	122,289	$	116,179	$	110,535
Less the effects of the
average net investment in
discontinued operations		(478)		4,924		13,819		17,432		9,248		(167)		(478)		4,924		13,819		17,432
Average GE shareowners’
equity, excluding effects of
discontinued operations(a)	$	120,889	$	117,365	$	102,360	$	93,103	$	104,139	$	124,668	$	120,889	$	117,365	$	102,360	$	93,103

~~(84)~~(86)

Financing receivables Investment in contractual loans and leases due from customers (not investment securities).

Forward contract Fixed price contract for purchase or sale of a specified quantity of a commodity, security, currency or other financial instrument with delivery and settlement at a specified future date. Commonly used as a hedging tool. See “Hedge.”

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).

Guaranteed investment contracts (GICs) Deposit-type products that guarantee a minimum rate of return, which may be fixed or floating.

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.”

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.

Match funding A risk control policy that provides funding for a particular financial asset having the same currency, maturity and interest rate characteristics as that asset. Match funding is executed directly, by issuing debt, or synthetically, through a combination of debt and derivative financial instruments. For example, when we lend at a fixed interest rate in the U.S., we can borrow those U.S. dollars either at a fixed rate of interest or at a floating rate executed concurrently with a pay-fixed interest rate swap. See “Hedge.”

Monetization Sale of financial assets to a third party for cash. For example, we sell certain loans, credit card receivables and trade receivables to third-party financial buyers, typically providing at least some credit protection and often agreeing to provide collection and processing services for a fee. Monetization normally results in gains on interest-bearing assets and losses on ~~non-interest bearing~~non-interest-bearing assets. See “Securitization” and “Variable interest entity.”

Noncontrolling interest Portion of ~~shareowner's~~shareowner’s equity in a subsidiary that is not attributable to GE.

Operating profit GE earnings from continuing operations before interest and other financial charges, income taxes and effects of accounting changes.

Option The right, not the obligation, to execute a transaction at a designated price, generally involving equity interests, interest rates, currencies or commodities. See “Hedge.”

(87)

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.

~~(85)~~

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.

Reclassification adjustments – Amounts previously recognized in Other Comprehensive Income that are included in net income in the current period.

Product services For purposes of the financial statement display of sales and costs of sales in our Statement of Earnings, “goods” is required by U.S. Securities and Exchange Commission regulations to include all sales of tangible products, and “services” must include all other sales, including ~~broadcasting and~~ other services activities. In our Management’s Discussion and Analysis of Operations, we refer to sales under product ~~service~~services agreements and sales of both goods (such as spare parts and equipment upgrades) and related services (such as monitoring, maintenance and repairs) as sales of “product services,” which is an important part of our operations.

Product services agreements Contractual commitments, with multiple-year terms, to provide specified services for products in our Power & Water, Oil & Gas, Aviation and Transportation installed base – for example, monitoring, maintenance, service and spare parts for a gas turbine/generator set installed in a customer’s power plant.

Productivity The rate of increased output for a given level of input, with both output and input measured in constant currency.

Progress collections ~~Payments~~Billings and payments received on customer contracts before the related revenue is recognized.

Qualified special purpose entities (QSPEs) A type of variable interest entity whose activities are significantly limited and entirely specified in the legal documents that established it. There also are significant limitations on the types of assets and derivative instruments such entities may hold and the types and extent of activities and decision-making they may engage in.

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.

Return on average GE shareowners’ equity Earnings from continuing operations before accounting changes divided by average GE shareowners’ equity, excluding effects of discontinued operations (on an annual basis, calculated using a five-point average). Average GE shareowners’ equity, excluding effects of discontinued operations, as of the end of each of the years in the five-year period ended December 31 ~~2012,~~of the year for which the ratio is calculated is described in the Supplemental Information section.

Return on average total capital invested For GE, earnings from continuing operations before accounting changes plus the sum of after-tax interest and other financial charges and noncontrolling interests, divided by the sum of the averages of total shareowners’ equity (excluding effects of discontinued operations), borrowings, mandatorily redeemable preferred stock and noncontrolling interests (on an annual basis, calculated using a five-point average). Average total shareowners’ equity, excluding effects of discontinued operations as of the end of each of the years in the five-year period ended December 31 ~~2012,~~of the year for which the ratio is calculated is described in the Supplemental Information section.

(88)

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 “Monetization” and “Variable interest entity.”

~~(86)~~

Subprime For purposes of Consumer-related discussion, subprime includes consumer finance products like mortgage, auto, cards, sales finance and personal loans to U.S. and global borrowers whose credit score implies a higher probability of default based upon GECC's proprietary scoring models and definitions, which add various qualitative and quantitative factors to a base credit score such as a FICO score or global bureau score. Although FICO and global bureau credit scores are a widely accepted rating of individual consumer creditworthiness, the internally modeled scores are more reflective of the behavior and default risks in the portfolio compared towith stand-alone generic bureau scores.

Turnover Broadly based on the number of times that working capital is replaced during a year. Current receivables turnover is total sales divided by the five-point average balance of GE current receivables. Inventory turnover is total sales divided by a five-point average balance of inventories. See “Working capital.”

Variable interest entity 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.

Working capital Represents GE current receivables and inventories, less GE accounts payable and progress collections.

(89)

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

Information about our global risk management can be found in the Operations – Global Risk Management, GE Capital Risk Management and Oversight and Financial Resources and Liquidity and Borrowings – Funding Plan – Exchange Rate and Interest Rate Risks sections in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Form 10-K Report.

Item 8. Financial Statements and Supplementary Data.

Management’s Annual Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. With our participation, an evaluation of the effectiveness of our internal control over financial reporting was conducted as of December 31, ~~2012,~~2013, based on the framework and criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway ~~Commission.~~Commission in 1992.

Based on this evaluation, our management has concluded that our internal control over financial reporting was effective as of December 31, ~~2012.~~2013.

Our independent registered public accounting firm has issued an audit report on our internal control over financial reporting. Their report follows.

/s/ Jeffrey R. Immelt		/s/ ~~Keith~~Jeffrey S. ~~Sherin~~Bornstein
Jeffrey R. Immelt		~~Keith~~Jeffrey S. ~~Sherin~~Bornstein
Chairman of the Board and Chief Executive Officer February ~~26, 2013~~27, 2014		Senior Vice ~~Chairman~~President and Chief Financial Officer

~~(87)~~(90)

Report of Independent Registered Public Accounting Firm

To Shareowners and Board of Directors

of General Electric Company:

We have audited the accompanying statement of financial position of General Electric Company and consolidated affiliates (the “Company”) as of December 31, ~~2012~~2013 and ~~2011,~~2012, and the related statements of earnings, comprehensive income, changes in shareowners’ equity and cash flows for each of the years in the three-year period ended December 31, ~~2012.~~2013. We also have audited the ~~Company's~~Company’s internal control over financial reporting as of December 31, ~~2012,~~2013, based on criteria established in Internal Control – Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). The ~~Company's~~Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting. Our responsibility is to express an opinion on these consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

(91)

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of General Electric Company and consolidated affiliates as of December 31, ~~2012~~2013 and ~~2011,~~2012, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, ~~2012,~~2013, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, ~~2012,~~2013, based on criteria established in Internal Control – Integrated Framework (1992) issued by COSO.

~~(88)~~

~~As discussed in Note 1 to the consolidated financial statements, in 2010 the Company changed its method of accounting for consolidation of variable interest entities.~~

Our audits of the consolidated financial statements were made for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The accompanying consolidating information appearing on pages ~~92,~~ 95, 98 and 97100 is presented for purposes of additional analysis of the consolidated financial statements rather than to present the financial position, results of operations and cash flows of the individual entities. The consolidating information has been subjected to the auditing procedures applied in the audits of the consolidated financial statements and, in our opinion, is fairly stated in all material respects in relation to the consolidated financial statements taken as a whole.

/s/ KPMG LLP

Stamford, Connecticut February 27, 2014

~~Stamford, Connecticut~~

~~February 26, 2013~~

~~(89)~~(92)

Audited Financial Statements and Notes

Statement of Earnings	94
Consolidated Statement of Comprehensive Income	96
Consolidated Statement of Changes in Shareowners’ Equity	96
Statement of Financial Position	97
Statement of Cash Flows	99
Notes to Consolidated Financial Statements

1	Basis of Presentation and Summary of Significant Accounting Policies	101
2	Assets and Liabilities of Businesses Held for Sale and Discontinued Operations	113
3	Investment Securities	120
4	Current Receivables	124
5	Inventories	124
6	GECC Financing Receivables, Allowance for Losses on Financing Receivables and Supplemental Information on Credit Quality	125
7	Property, Plant and Equipment	139
8	Goodwill and Other Intangible Assets	140
9	All Other Assets	143
10	Borrowings and Bank Deposits	144
11	Investment Contracts, Insurance Liabilities and Insurance Annuity Benefits	146
12	Postretirement Benefit Plans	146
13	All Other Liabilities	156
14	Income Taxes	157
15	Shareowners’ Equity	161
16	Other Stock-related Information	165
17	Other Income	168
18	GECC Revenues from Services	169
19	Supplemental Cost Information	169
20	Earnings Per Share Information	170
21	Fair Value Measurements	171
22	Financial Instruments	177
23	Variable Interest Entities	183
24	Commitments and Guarantees	186
25	Supplemental Cash Flows Information	187
26	Intercompany Transactions	188
27	Operating Segments	188
28	Quarterly Information (unaudited)	192

Statement of Earnings 91
Consolidated Statement of Comprehensive Income 93
Consolidated Statement of Changes in Shareowners’ Equity 93
Statement of Financial Position 94
Statement of Cash Flows 96
Notes to Consolidated Financial Statements
1 Basis of Presentation and Summary of Significant Accounting Policies 98
2 Assets and Liabilities of Businesses Held for Sale and Discontinued Operations 111
3 Investment Securities 117
4 Current Receivables 121
5 Inventories 121
6 GECC Financing Receivables and Allowance for Losses on Financing Receivables 122
7 Property, Plant and Equipment 128
8 Goodwill and Other Intangible Assets 129
9 All Other Assets 133
10 Borrowings and Bank Deposits 134
11 Investment Contracts, Insurance Liabilities and Insurance Annuity Benefits 136
12 Postretirement Benefit Plans 136
13 All Other Liabilities 147
14 Income Taxes 148
15 Shareowners’ Equity 152
16 Other Stock-related Information 155
17 Other Income 158
18 GECC Revenues from Services 159
19 Supplemental Cost Information 159
20 Earnings Per Share Information 160
21 Fair Value Measurements 161
22 Financial Instruments 167
23 Supplemental Information About the Credit Quality of Financing Receivables
and Allowance for Losses on Financing Receivables 172
24 Variable Interest Entities 183
25 Commitments and Guarantees 186
26 Supplemental Cash Flows Information 187
27 Intercompany Transactions 189
28 Operating Segments 189
29 Quarterly Information (unaudited) 193

~~(90)~~(93)

Statement of Earnings
	General Electric Company						General Electric Company
	and consolidated affiliates						and consolidated affiliates
For the years ended December 31 (In millions; per-share amounts in dollars)	2012			2011		2010	2013			2012		2011

Revenues and other income
Sales of goods	$	72,991	$	66,875	$	60,811	$	71,873	$	72,991	$	66,874
Sales of services		27,158		27,648		39,625		28,669		27,158		27,648
Other income (Note 17)		2,563		5,064		1,151		3,108		2,563		5,063
GECC earnings from continuing operations		–		–		–		-		-		-
GECC revenues from services (Note 18)		44,647		47,701		47,980		42,395		43,972		46,957
Total revenues and other income		147,359		147,288		149,567		146,045		146,684		146,542

Costs and expenses (Note 19)
Cost of goods sold		56,785		51,455		45,998		57,867		56,785		51,455
Cost of services sold		17,525		16,823		25,715		19,274		17,525		16,823
Interest and other financial charges		12,508		14,528		15,537		10,116		12,407		14,422
Investment contracts, insurance losses and
insurance annuity benefits		2,857		2,912		3,012		2,676		2,857		2,912
Provision for losses on financing
receivables (Notes 6 and 23)		3,891		3,951		7,085
receivables (Note 6)								4,818		3,832		3,930
Other costs and expenses		36,387		37,362		38,033		35,143		35,897		36,841
Total costs and expenses		129,953		127,031		135,380		129,894		129,303		126,383

Earnings from continuing operations
before income taxes		17,406		20,257		14,187		16,151		17,381		20,159
Benefit (provision) for income taxes (Note 14)		(2,504)		(5,738)		(1,039)		(676)		(2,534)		(5,745)
Earnings from continuing operations		14,902		14,519		13,148		15,475		14,847		14,414
Earnings (loss) from discontinued operations,
net of taxes (Note 2)		(1,038)		(76)		(969)		(2,120)		(983)		29
Net earnings		13,864		14,443		12,179		13,355		13,864		14,443
Less net earnings attributable to
noncontrolling interests		223		292		535		298		223		292
Net earnings attributable to the Company		13,641		14,151		11,644		13,057		13,641		14,151
Preferred stock dividends declared		–		(1,031)		(300)		-		-		(1,031)
Net earnings attributable to GE common
shareowners	$	13,641	$	13,120	$	11,344	$	13,057	$	13,641	$	13,120


Amounts attributable to the Company
Earnings from continuing operations	$	14,679	$	14,227	$	12,613	$	15,177	$	14,624	$	14,122
Earnings (loss) from discontinued operations,
net of taxes		(1,038)		(76)		(969)		(2,120)		(983)		29
Net earnings attributable to the Company	$	13,641	$	14,151	$	11,644	$	13,057	$	13,641	$	14,151

Per-share amounts (Note 20)
Earnings from continuing operations
Diluted earnings per share	$	1.39	$	1.24	$	1.15	$	1.47	$	1.38	$	1.23
Basic earnings per share		1.39		1.24		1.15		1.48		1.39		1.23

Net earnings
Diluted earnings per share		1.29		1.23		1.06		1.27		1.29		1.23
Basic earnings per share		1.29		1.24		1.06		1.28		1.29		1.24

Dividends declared per share		0.70		0.61		0.46		0.79		0.70		0.61

See Note 3 for other-than-temporary impairment amounts.

~~See accompanying notes~~

See accompanying notes.

~~(91)~~(94)

Statement of Earnings (Continued)

For the years ended December 31 GE(a) GECC
(In millions; per-share amounts in dollars) 2012 2011 2010 2012 2011 2010

Revenues and other income
Sales of goods $ 73,304 $ 67,012 $ 60,344 $ 119 $ 148 $ 533
Sales of services 27,571 28,024 39,875 – – –
Other income (Note 17) 2,657 5,270 1,285 – – –
GECC earnings from continuing operations 7,401 6,584 3,120 – – –
GECC revenues from services (Note 18) – – – 45,920 48,920 49,323
   Total revenues and other income
110,933 106,890 104,624 46,039 49,068 49,856

Costs and expenses (Note 19)
Cost of goods sold 57,118 51,605 45,563 99 135 501
Cost of services sold 17,938 17,199 25,965 – – –
Interest and other financial charges 1,353 1,299 1,600 11,697 13,866 14,510
Investment contracts, insurance losses and
   insurance annuity benefits
– – – 2,984 3,059 3,197
Provision for losses on financing
   receivables (Notes 6 and 23)
– – – 3,891 3,951 7,085
Other costs and expenses 17,672 17,556 16,340 19,413 20,447 22,412
   Total costs and expenses
94,081 87,659 89,468 38,084 41,458 47,705

Earnings (loss) from continuing operations
   before income taxes
16,852 19,231 15,156 7,955 7,610 2,151
Benefit (provision) for income taxes (Note 14) (2,013) (4,839) (2,024) (491) (899) 985
Earnings from continuing operations 14,839 14,392 13,132 7,464 6,711 3,136
Earnings (loss) from discontinued operations,
   net of taxes (Note 2)
(1,038) (76) (969) (1,186) (74) (965)
Net earnings 13,801 14,316 12,163 6,278 6,637 2,171
Less net earnings attributable to
   noncontrolling interests
160 165 519 63 127 16
Net earnings attributable to the Company 13,641 14,151 11,644 6,215 6,510 2,155
Preferred stock dividends declared – (1,031) (300) (123) – –
Net earnings attributable to GE common
   shareowners
$ 13,641 $ 13,120 $ 11,344 $ 6,092 $ 6,510 $ 2,155

Amounts attributable to the Company
   Earnings from continuing operations
$ 14,679 $ 14,227 $ 12,613 $ 7,401 $ 6,584 $ 3,120
   Earnings (loss) from discontinued operations,

      net of taxes
(1,038) (76) (969) (1,186) (74) (965)
   Net earnings attributable to the Company
$ 13,641 $ 14,151 $ 11,644 $ 6,215 $ 6,510 $ 2,155

Statement of Earnings (Continued)
For the years ended December 31	GE(a)						GECC
(In millions; per-share amounts in dollars)	2013		2012		2011		2013		2012		2011

Revenues and other income
Sales of goods	$	71,951	$	73,304	$	67,011	$	126	$	119	$	148
Sales of services		29,063		27,571		28,024		-		-		-
Other income (Note 17)		2,886		2,657		5,268		-		-		-
GECC earnings from continuing operations		8,258		7,345		6,480		-		-		-
GECC revenues from services (Note 18)		-		-		-		43,941		45,245		48,176
Total revenues and other income		112,158		110,877		106,783		44,067		45,364		48,324

Costs and expenses (Note 19)
Cost of goods sold		57,962		57,118		51,605		108		99		135
Cost of services sold		19,668		17,938		17,199		-		-		-
Interest and other financial charges		1,333		1,353		1,299		9,267		11,596		13,760
Investment contracts, insurance losses and
insurance annuity benefits		-		-		-		2,779		2,984		3,059
Provision for losses on financing
receivables (Note 6)		-		-		-		4,818		3,832		3,930
Other costs and expenses		16,105		17,671		17,554		19,776		18,924		19,927
Total costs and expenses		95,068		94,080		87,657		36,748		37,435		40,811

Earnings from continuing operations
before income taxes		17,090		16,797		19,126		7,319		7,929		7,513
Benefit (provision) for income taxes (Note 14)		(1,668)		(2,013)		(4,839)		992		(521)		(906)
Earnings from continuing operations		15,422		14,784		14,287		8,311		7,408		6,607
Earnings (loss) from discontinued operations,
net of taxes (Note 2)		(2,120)		(983)		29		(2,054)		(1,130)		30
Net earnings		13,302		13,801		14,316		6,257		6,278		6,637
Less net earnings attributable to
noncontrolling interests		245		160		165		53		63		127
Net earnings attributable to the Company		13,057		13,641		14,151		6,204		6,215		6,510
Preferred stock dividends declared		-		-		(1,031)		(298)		(123)		-
Net earnings attributable to GE common
shareowners	$	13,057	$	13,641	$	13,120	$	5,906	$	6,092	$	6,510


Amounts attributable to the Company
Earnings from continuing operations	$	15,177	$	14,624	$	14,122	$	8,258	$	7,345	$	6,480
Earnings (loss) from discontinued operations,
net of taxes		(2,120)		(983)		29		(2,054)		(1,130)		30
Net earnings attributable to the Company	$	13,057	$	13,641	$	14,151	$	6,204	$	6,215	$	6,510

(a)	Represents the adding together of all affiliated companies except General Electric Capital Corporation (GECC or financial services), which is presented on a one-line ~~basis~~basis. See Note 1.

In the consolidating data on this page, "GE" means the basis of consolidation as described in Note 1 to the consolidated financial statements; "GECC" means General Electric Capital Corporation and all of its affiliates and associated companies. Separate information is shown for "GE" and "GECC." Transactions between GE and GECC have been eliminated from the "General Electric Company and consolidated affiliates" columns on the prior page.

~~(92)~~(95)

Consolidated Statement of Comprehensive Income

For the years ended December 31 (In millions)		2012		2011		2010		2013		2012		2011

Net earnings	$	13,864	$	14,443	$	12,179	$	13,355	$	13,864	$	14,443
Less: net earnings (loss) attributable to noncontrolling interests		223		292		535		298		223		292
Net earnings attributable to GE	$	13,641	$	14,151	$	11,644	$	13,057	$	13,641	$	14,151

Other comprehensive income (loss)
Investment securities	$	705	$	608	$	16	$	(374)	$	705	$	608
Currency translation adjustments		300		180		(3,876)		(308)		300		180
Cash flow hedges		453		118		505		467		453		118
Benefit plans		2,299		(7,040)		1,068		11,300		2,299		(7,040)
Other comprehensive income (loss)		3,757		(6,134)		(2,287)		11,085		3,757		(6,134)
Less: other comprehensive income (loss) attributable to noncontrolling interests		13		(15)		38		(25)		13		(15)
Other comprehensive income (loss) attributable to GE	$	3,744	$	(6,119)	$	(2,325)	$	11,110	$	3,744	$	(6,119)

Comprehensive income	$	17,621	$	8,309	$	9,892	$	24,440	$	17,621	$	8,309
Less: comprehensive income attributable to noncontrolling interests		236		277		573		273		236		277
Comprehensive income attributable to GE	$	17,385	$	8,032	$	9,319	$	24,167	$	17,385	$	8,032

Amounts presented net of taxes. See Note 15 for further information about other comprehensive income and noncontrolling interests.

See accompanying notes.

Consolidated Statement of Changes in Shareowners' Equity

(In millions)		2012		2011		2010		2013		2012		2011

GE shareowners' equity balance at January 1	$	116,438	$	118,936	$	117,291	$	123,026	$	116,438	$	118,936
Increases from net earnings attributable to the Company		13,641		14,151		11,644		13,057		13,641		14,151
Dividends and other transactions with shareowners		(7,372)		(7,502)		(5,162)		(8,061)		(7,372)		(7,502)
Other comprehensive income (loss) attributable to GE		3,744		(6,119)		(2,325)		11,110		3,744		(6,119)
Net sales (purchases) of shares for treasury		(2,802)		169		300		(7,990)		(2,802)		169
Changes in other capital		(623)		(3,197)		(839)		(576)		(623)		(3,197)
Cumulative effect of changes in accounting principles(a)		–		–		(1,973)
Ending balance at December 31		123,026		116,438		118,936		130,566		123,026		116,438
Noncontrolling interests		5,444		1,696		5,262		6,217		5,444		1,696
Total equity balance at December 31	$	128,470	$	118,134	$	124,198	$	136,783	$	128,470	$	118,134

~~See Note 15 for further information about changes in shareowners’ equity.~~

See Note 15 for further information about changes in shareowners’ equity.

~~(a)~~

~~On January 1, 2010, we adopted amendments to Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 860,~~ ~~Transfers and Servicing, and ASC 810,~~ ~~Consolidation, and recorded a cumulative effect adjustment. See Notes 15 and 24.~~

See accompanying notes.

~~(93)~~(96)

Statement of Financial Position
	General Electric Company				General Electric Company
	and consolidated affiliates				and consolidated affiliates
At December 31 (In millions, except share amounts)	2012		2011		2013		2012

Assets
Cash and equivalents	$	77,356	$	84,501	$	88,555	$	77,268
Investment securities (Note 3)		48,510		47,374		43,981		48,510
Current receivables (Note 4)		21,500		20,478		21,388		19,902
Inventories (Note 5)		15,374		13,792		17,325		15,374
Financing receivables – net (Notes 6 and 23)		258,028		279,918
Financing receivables – net (Note 6)						241,940		257,238
Other GECC receivables		7,961		7,561		9,114		7,864
Property, plant and equipment – net (Note 7)		69,743		65,739		68,827		68,633
Investment in GECC		–		–		-		-
Goodwill (Note 8)		73,447		72,625		77,648		73,114
Other intangible assets – net (Note 8)		11,987		12,068		14,310		11,980
All other assets (Note 9)		100,076		111,701		70,808		101,644
Deferred income taxes (Note 14)						275		(54)
Assets of businesses held for sale (Note 2)		211		711		50		211
Assets of discontinued operations (Note 2)		1,135		1,721		2,339		3,315
Total assets(a)	$	685,328	$	718,189	$	656,560	$	684,999

Liabilities and equity
Short-term borrowings (Note 10)	$	101,392	$	137,611	$	77,890	$	101,392
Accounts payable, principally trade accounts		15,675		16,400		16,471		15,654
Progress collections and price adjustments
accrued		10,877		11,349		13,125		10,877
Dividends payable		1,980		1,797		2,220		1,980
Other GE current liabilities		14,895		14,796		13,381		14,895
Non-recourse borrowings of consolidated
securitization entities (Note 10)		30,123		29,258		30,124		30,123
Bank deposits (Note 10)		46,461		43,115		53,361		46,200
Long-term borrowings (Note 10)		236,084		243,459		221,665		236,084
Investment contracts, insurance liabilities
and insurance annuity benefits (Note 11)		28,268		29,774		26,544		28,268
All other liabilities (Note 13)		68,676		70,653		61,057		68,166
Deferred income taxes (Note 14)		(75)		(131)
Liabilities of businesses held for sale (Note 2)		157		345		6		157
Liabilities of discontinued operations (Note 2)		2,345		1,629		3,933		2,733
Total liabilities(a)		556,858		600,055		519,777		556,529

GECC preferred stock (40,000 and 0 shares outstanding at
year-end 2012 and 2011, respectively)		–		–
Common stock (10,405,625,000 and 10,573,017,000
shares outstanding at year-end 2012 and
2011, respectively)		702		702
GECC preferred stock (50,000 and 40,000 shares outstanding at
year-end 2013 and 2012, respectively)						-		-
Common stock (10,060,881,000 and 10,405,625,000
shares outstanding at year-end 2013 and 2012, respectively)						702		702
Accumulated other comprehensive income attributable to GE(b)
Investment securities		677		(30)		307		677
Currency translation adjustments		412		133		126		412
Cash flow hedges		(722)		(1,176)		(257)		(722)
Benefit plans		(20,597)		(22,901)		(9,296)		(20,597)
Other capital		33,070		33,693		32,494		33,070
Retained earnings		144,055		137,786		149,051		144,055
Less common stock held in treasury		(34,571)		(31,769)		(42,561)		(34,571)

Total GE shareowners’ equity		123,026		116,438		130,566		123,026
Noncontrolling interests(c)		5,444		1,696		6,217		5,444
Total equity (Notes 15 and 16)		128,470		118,134		136,783		128,470

Total liabilities and equity	$	685,328	$	718,189	$	656,560	$	684,999

(a)

Our consolidated assets at December 31, ~~2012~~2013 include total assets of ~~$46,064~~$47,367 million of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs. These assets include net financing receivables of ~~$40,287~~$41,420 million and investment securities of ~~$3,419~~$3,830 million. Our consolidated liabilities at December 31, ~~2012~~2013 include liabilities of certain VIEs for which the VIE creditors do not have recourse to GE. These liabilities include non-recourse borrowings of consolidated securitization entities (CSEs) of ~~$29,123~~$28,574 million. See Note ~~24.~~23.

(b)	The sum of accumulated other comprehensive income attributable to GE was ~~$(20,230)~~$(9,120) million and ~~$(23,974)~~$(20,230) million at December 31, ~~2012~~2013 and ~~2011,~~2012, respectively.

(c)	Included accumulated other comprehensive income attributable to noncontrolling interests of ~~$(155)~~$(180) million and ~~$(168)~~$(155) million at December 31, ~~2012~~2013 and ~~2011,~~2012, respectively.

See accompanying notes.

~~(94)~~(97)

Statement of Financial Position (Continued)

	GE(a)				GECC				GE(a)				GECC
At December 31 (In millions, except share amounts)	2012		2011		2012		2011		2013		2012		2013		2012

Assets
Cash and equivalents	$	15,509	$	8,382	$	61,941	$	76,702	$	13,682	$	15,509	$	74,873	$	61,853
Investment securities (Note 3)		74		18		48,439		47,359		323		74		43,662		48,439
Current receivables (Note 4)		10,872		11,807		–		–		10,970		9,274		-		-
Inventories (Note 5)		15,295		13,741		79		51		17,257		15,295		68		79
Financing receivables – net (Notes 6 and 23)		–		–		268,951		288,847
Financing receivables – net (Note 6)										-		-		253,029		268,161
Other GECC receivables		–		–		13,988		13,390		-		-		16,513		13,891
Property, plant and equipment – net (Note 7)		16,033		14,283		53,673		51,419		17,574		16,033		51,607		52,967
Investment in GECC		77,930		77,110		–		–		77,745		77,930		-		-
Goodwill (Note 8)		46,143		45,395		27,304		27,230		51,453		46,143		26,195		26,971
Other intangible assets – net (Note 8)		10,700		10,522		1,294		1,546		13,180		10,700		1,136		1,287
All other assets (Note 9)		37,936		36,675		62,217		75,612		23,708		39,534		47,366		62,186
Deferred income taxes (Note 14)										5,061		5,946		(4,786)		(6,000)
Assets of businesses held for sale (Note 2)		–		–		211		711		-		-		50		211
Assets of discontinued operations (Note 2)		9		52		1,126		1,669		9		9		2,330		3,306
Total assets	$	230,501	$	217,985	$	539,223	$	584,536	$	230,962	$	236,447	$	512,043	$	533,351

Liabilities and equity
Short-term borrowings (Note 10)	$	6,041	$	2,184	$	95,940	$	136,333	$	1,841	$	6,041	$	77,298	$	95,940
Accounts payable, principally trade accounts		14,259		14,209		6,277		7,239		16,353		14,259		6,549		6,256
Progress collections and price adjustments
accrued		10,877		11,349		–		–		13,152		10,877		-		-
Dividends payable		1,980		1,797		–		–		2,220		1,980		-		-
Other GE current liabilities		14,896		14,796		–		–		13,381		14,896		-		-
Non-recourse borrowings of consolidated
securitization entities (Note 10)		–		–		30,123		29,258		-		-		30,124		30,123
Bank deposits (Note 10)		–		–		46,461		43,115		-		-		53,361		46,200
Long-term borrowings (Note 10)		11,428		9,405		224,776		234,391		11,515		11,428		210,279		224,776
Investment contracts, insurance liabilities
and insurance annuity benefits (Note 11)		–		–		28,696		30,198		-		-		26,979		28,696
All other liabilities (Note 13)		53,093		53,826		16,050		17,334		40,955		53,093		20,531		15,943
Deferred income taxes (Note 14)		(5,946)		(7,183)		5,871		7,052
Liabilities of businesses held for sale (Note 2)		–		–		157		345		-		-		6		157
Liabilities of discontinued operations (Note 2)		70		158		2,275		1,471		143		70		3,790		2,663
Total liabilities		106,698		100,541		456,626		506,736		99,560		112,644		428,917		450,754

GECC preferred stock (40,000 and 0 shares outstanding at
year-end 2012 and 2011, respectively)		–		–		–		–
Common stock (10,405,625,000 and 10,573,017,000
shares outstanding at year-end 2012 and 2011, respectively)		702		702		–		–
GECC preferred stock (50,000 shares and 40,000 shares outstanding at
year-end 2013 and 2012, respectively)										-		-		-		-
Common stock (10,060,881,000 and 10,405,625,000
shares outstanding at year-end 2013 and 2012, respectively)										702		702		-		-
Accumulated other comprehensive income attributable to GE
Investment securities		677		(30)		673		(33)		307		677		309		673
Currency translation adjustments		412		133		(131)		(399)		126		412		(687)		(131)
Cash flow hedges		(722)		(1,176)		(746)		(1,101)		(257)		(722)		(293)		(746)
Benefit plans		(20,597)		(22,901)		(736)		(563)		(9,296)		(20,597)		(363)		(736)
Other capital		33,070		33,693		31,586		27,628		32,494		33,070		32,563		31,586
Retained earnings		144,055		137,786		51,244		51,578		149,051		144,055		51,165		51,244
Less common stock held in treasury		(34,571)		(31,769)		–		–		(42,561)		(34,571)		-		-

Total GE shareowners’ equity		123,026		116,438		81,890		77,110		130,566		123,026		82,694		81,890
Noncontrolling interests		777		1,006		707		690		836		777		432		707
Total equity (Notes 15 and 16)		123,803		117,444		82,597		77,800		131,402		123,803		83,126		82,597

Total liabilities and equity	$	230,501	$	217,985	$	539,223	$	584,536	$	230,962	$	236,447	$	512,043	$	533,351

(a)	Represents the adding together of all affiliated companies except General Electric Capital Corporation (GECC or financial services), which is presented on a one-line basis. See Note 1.

In the consolidating data on this page, "GE" means the basis of consolidation as described in Note 1 to the consolidated financial statements; "GECC" means General Electric Capital Corporation and all of its affiliates and associated companies. Separate information is shown for “GE” and “GECC.” Transactions between GE and GECC have been eliminated from the “General Electric Company and consolidated affiliates” columns on the prior page.

~~(95)~~(98)


Statement of Cash Flows
	General Electric Company and consolidated affiliates						General Electric Company and consolidated affiliates
For the years ended December 31 (In millions)	2012		2011		2010		2013		2012		2011

Cash flows – operating activities
Net earnings	$	13,864	$	14,443	$	12,179	$	13,355	$	13,864	$	14,443
Less net earnings attributable to noncontrolling interests		223		292		535		298		223		292
Net earnings attributable to the Company		13,641		14,151		11,644		13,057		13,641		14,151
(Earnings) loss from discontinued operations		1,038		76		969		2,120		983		(29)
Adjustments to reconcile net earnings attributable to the
Company to cash provided from operating activities
Depreciation and amortization of property,
plant and equipment		9,346		9,185		9,786		9,762		9,192		8,986
Earnings from continuing operations retained by GECC		–		–		–		-		-		-
Deferred income taxes		(1,171)		(203)		930		(3,295)		(1,152)		(204)
Decrease (increase) in GE current receivables		(774)		(714)		(60)		(485)		(879)		(670)
Decrease (increase) in inventories		(1,274)		(1,168)		342		(1,368)		(1,274)		(1,168)
Increase (decrease) in accounts payable		(424)		1,235		883		360		(437)		1,204
Increase (decrease) in GE progress collections		(920)		(1,146)		(1,243)		1,893		(920)		(1,146)
Provision for losses on GECC financing receivables		3,891		3,951		7,085		4,818		3,832		3,930
All other operating activities		7,899		7,255		5,921		2,175		8,029		7,057
Cash from (used for) operating activities – continuing
operations		31,252		32,622		36,257		29,037		31,015		32,111
Cash from (used for) operating activities – discontinued
operations		79		737		(133)		(458)		316		1,248
Cash from (used for) operating activities		31,331		33,359		36,124		28,579		31,331		33,359

Cash flows – investing activities
Additions to property, plant and equipment		(15,126)		(12,650)		(9,800)		(13,458)		(15,119)		(12,637)
Dispositions of property, plant and equipment		6,200		5,896		7,208		5,883		6,184		5,867
Net decrease (increase) in GECC financing receivables		6,872		14,630		21,758		2,715		6,979		14,785
Proceeds from sales of discontinued operations		227		8,950		2,510		528		227		8,950
Proceeds from principal business dispositions		3,618		8,877		3,062		3,324		3,618		8,877
Payments for principal businesses purchased		(1,456)		(11,202)		(1,212)
Proceeds from sale of equity interest in NBCU LLC								16,699		-		-
Net cash from (payments for) principal businesses purchased								(1,642)		(1,456)		(11,202)
All other investing activities		11,064		6,095		10,262		14,625		11,157		6,527
Cash from (used for) investing activities – continuing
operations		11,399		20,596		33,788		28,674		11,590		21,167
Cash from (used for) investing activities – discontinued
operations		(97)		(714)		(1,352)		443		(288)		(1,285)
Cash from (used for) investing activities		11,302		19,882		32,436		29,117		11,302		19,882

Cash flows – financing activities
Net increase (decrease) in borrowings (maturities of
90 days or less)		(2,231)		5,951		(1,228)		(14,230)		(2,231)		5,951
Net increase (decrease) in bank deposits		2,432		6,748		4,603		2,197		2,450		6,652
Newly issued debt (maturities longer than 90 days)		63,019		43,847		47,643		45,392		63,019		43,847
Repayments and other reductions (maturities longer
than 90 days)		(103,942)		(85,706)		(99,933)		(61,461)		(103,942)		(85,706)
Proceeds from issuance of GECC preferred stock		3,960		–		–		990		3,960		-
Repayment of preferred stock		–		(3,300)		–		-		-		(3,300)
Net dispositions (purchases) of GE shares for treasury		(4,164)		(1,456)		(1,263)		(9,278)		(4,164)		(1,456)
Dividends paid to shareowners		(7,189)		(6,458)		(4,790)		(7,821)		(7,189)		(6,458)
Purchases of subsidiary shares from noncontrolling interests		–		(4,578)		(2,633)		-		-		(4,578)
All other financing activities		(2,959)		(1,867)		(3,648)		(1,418)		(2,958)		(1,867)
Cash from (used for) financing activities – continuing
operations		(51,074)		(46,819)		(61,249)		(45,629)		(51,055)		(46,915)
Cash from (used for) financing activities – discontinued
operations		–		(44)		(337)		56		(19)		52
Cash from (used for) financing activities		(51,074)		(46,863)		(61,586)		(45,573)		(51,074)		(46,863)
Effect of exchange rate changes on cash and equivalents		1,278		(841)		(333)		(795)		1,278		(841)
Increase (decrease) in cash and equivalents		(7,163)		5,537		6,641		11,328		(7,163)		5,537
Cash and equivalents at beginning of year		84,622		79,085		72,444		77,459		84,622		79,085
Cash and equivalents at end of year		77,459		84,622		79,085		88,787		77,459		84,622
Less cash and equivalents of discontinued operations
at end of year		103		121		142		232		191		182
Cash and equivalents of continuing operations
at end of year	$	77,356	$	84,501	$	78,943	$	88,555	$	77,268	$	84,440
Supplemental disclosure of cash flows information
Cash paid during the year for interest	$	(12,717)	$	(15,571)	$	(17,132)	$	(8,690)	$	(12,717)	$	(15,571)
Cash recovered (paid) during the year for income taxes		(3,237)		(2,919)		(2,671)		(2,487)		(3,237)		(2,919)

See accompanying notes.

~~(96)~~(99)

Statement of Cash Flows (Continued)

	GE(a)									GECC
For the years ended December 31 (In millions)	2013			2012			2011			2013			2012			2011

Cash flows – operating activities
Net earnings	$	13,302	$	13,801	$	14,316	$	6,257	$	6,278	$	6,637
Less net earnings attributable to noncontrolling interests		245		160		165		53		63		127
Net earnings attributable to the Company		13,057		13,641		14,151		6,204		6,215		6,510
(Earnings) loss from discontinued operations		2,120		983		(29)		2,054		1,130		(30)
Adjustments to reconcile net earnings attributable to the
Company to cash provided from operating activities
Depreciation and amortization of property,
plant and equipment		2,449		2,291		2,068		7,313		6,901		6,918
Earnings from continuing operations retained by GECC(b)		(2,273)		(919)		(6,480)		-		-		-
Deferred income taxes		(2,571)		(294)		(327)		(724)		(858)		123
Decrease (increase) in GE current receivables		(1,432)		1,105		(346)		-		-		-
Decrease (increase) in inventories		(1,351)		(1,204)		(1,122)		33		(27)		15
Increase (decrease) in accounts payable		809		158		1,938		73		(880)		19
Increase (decrease) in GE progress collections		1,919		(920)		(1,146)		-		-		-
Provision for losses on GECC financing receivables		-		-		-		4,818		3,832		3,930
All other operating activities		1,528		2,985		3,350		99		5,418		3,127
Cash from (used for) operating activities – continuing
operations		14,255		17,826		12,057		19,870		21,731		20,612
Cash from (used for) operating activities – discontinued
operations		(2)		-		-		(456)		316		1,248
Cash from (used for) operating activities		14,253		17,826		12,057		19,414		22,047		21,860

Cash flows – investing activities
Additions to property, plant and equipment	(3,680)	(3,937)	(2,957)	(9,978)	(11,879)	(9,869)
Dispositions of property, plant and equipment	-	-	-	5,883	6,184	5,867
Net decrease (increase) in GECC financing receivables	-	-	-	3,589	5,490	14,525
Proceeds from sales of discontinued operations	-	-	-	528	227	8,950
Proceeds from principal business dispositions	1,316	540	6,254	1,983	2,863	2,623
Proceeds from sale of equity interest in NBCU LLC	16,699	-	-	-	-	-
Net cash from (payments for) principal businesses purchased	(8,026)	(1,456)	(11,152)	6,384	-	(50)
All other investing activities	(1,488)	(564)	(384)	14,972	11,794	7,733
Cash from (used for) investing activities – continuing
operations	4,821	(5,417)	(8,239)	23,361	14,679	29,779
Cash from (used for) investing activities – discontinued
operations	2	-	-	441	(288)	(1,285)
Cash from (used for) investing activities	4,823	(5,417)	(8,239)	23,802	14,391	28,494

Cash flows – financing activities
Net increase (decrease) in borrowings (maturities of
90 days or less)		949		(890)		1,058		(13,892)		(1,401)		4,393
Net increase (decrease) in bank deposits		-		-		-		2,197		2,450		6,652
Newly issued debt (maturities longer than 90 days)		512		6,961		177		44,888		55,841		43,267
Repayments and other reductions (maturities longer
than 90 days)		(5,032)		(34)		(270)		(56,429)		(103,908)		(85,436)
Proceeds from issuance of GECC preferred stock		-		-		-		990		3,960		-
Repayment of preferred stock		-		-		(3,300)		-		-		-
Net dispositions (purchases) of GE shares for treasury		(9,278)		(4,164)		(1,456)		-		-		-
Dividends paid to shareowners		(7,821)		(7,189)		(6,458)		(6,283)		(6,549)		-
Purchases of subsidiary shares from noncontrolling
interests		-		-		(4,303)		-		-		(275)
All other financing activities		(211)		32		(75)		(909)		(2,867)		(1,792)
Cash from (used for) financing activities – continuing
operations		(20,881)		(5,284)		(14,627)		(29,438)		(52,474)		(33,191)
Cash from (used for) financing activities – discontinued
operations		-		-		-		56		(19)		52
Cash from (used for) financing activities		(20,881)		(5,284)		(14,627)		(29,382)		(52,493)		(33,139)
Effect of exchange rate changes on cash and equivalents		(22)		2		(50)		(773)		1,276		(791)
Increase (decrease) in cash and equivalents		(1,827)		7,127		(10,859)		13,061		(14,779)		16,424
Cash and equivalents at beginning of year		15,509		8,382		19,241		62,044		76,823		60,399
Cash and equivalents at end of year		13,682		15,509		8,382		75,105		62,044		76,823
Less cash and equivalents of discontinued operations
at end of year		-		-		-		232		191		182
Cash and equivalents of continuing operations
at end of year	$	13,682	$	15,509	$	8,382	$	74,873	$	61,853	$	76,641
Supplemental disclosure of cash flows information
Cash paid during the year for interest	$	(812)	$	(1,182)	$	(1,177)	$	(8,146)	$	(12,172)	$	(15,018)
Cash recovered (paid) during the year for income taxes		(4,753)		(2,987)		(2,303)		2,266		(250)		(616)

Statement of Cash Flows (Continued)
GE(a) GECC
For the years ended December 31 (In millions) 2012 2011 2010 2012 2011 2010
Cash flows – operating activities
Net earnings $ 13,801 $ 14,316 $ 12,163 $ 6,278 $ 6,637 $ 2,171
Less net earnings attributable to noncontrolling interests 160 165 519 63 127 16
Net earnings attributable to the Company 13,641 14,151 11,644 6,215 6,510 2,155
(Earnings) loss from discontinued operations 1,038 76 969 1,186 74 965
Adjustments to reconcile net earnings attributable to the
   Company to cash provided from operating activities

      Depreciation and amortization of property,

         plant and equipment
2,291 2,068 2,034 7,055 7,117 7,752
      Earnings from continuing operations retained by GECC(b)
(975) (6,584) (3,120) – – –
      Deferred income taxes
(294) (327) (377) (877) 124 1,307
      Decrease (increase) in GE current receivables
1,210 (390) (963) – – –
      Decrease (increase) in inventories
(1,204) (1,122) 409 (27) 15 5
      Increase (decrease) in accounts payable
158 1,938 1,052 (867) 50 (116)
      Increase (decrease) in GE progress collections
(920) (1,146) (1,158) – – –
      Provision for losses on GECC financing receivables
– – – 3,891 3,951 7,085
      All other operating activities
2,881 3,393 4,256 5,392 3,282 2,482
Cash from (used for) operating activities – continuing
   operations
17,826 12,057 14,746 21,968 21,123 21,635
Cash from (used for) operating activities – discontinued
   operations
– – – 79 737 (133)
Cash from (used for) operating activities 17,826 12,057 14,746 22,047 21,860 21,502

Cash flows – investing activities
Additions to property, plant and equipment (3,937) (2,957) (2,418) (11,886) (9,882) (7,674)
Dispositions of property, plant and equipment – – – 6,200 5,896 7,208
Net decrease (increase) in GECC financing receivables – – – 5,383 14,370 23,046
Proceeds from sales of discontinued operations – – – 227 8,950 2,510
Proceeds from principal business dispositions 540 6,254 1,721 2,863 2,623 1,171
Payments for principal businesses purchased (1,456) (11,152) (653) – (50) (559)
All other investing activities (564) (384) (550) 11,701 7,301 9,960
Cash from (used for) investing activities – continuing
   operations
(5,417) (8,239) (1,900) 14,488 29,208 35,662
Cash from (used for) investing activities – discontinued
   operations
– – – (97) (714) (1,352)
Cash from (used for) investing activities (5,417) (8,239) (1,900) 14,391 28,494 34,310

Cash flows – financing activities
Net increase (decrease) in borrowings (maturities of
   90 days or less)
(890) 1,058 (671) (1,401) 4,393 (652)
Net increase (decrease) in bank deposits – – – 2,432 6,748 4,603
Newly issued debt (maturities longer than 90 days) 6,961 177 9,474 55,841 43,267 37,971
Repayments and other reductions (maturities longer
   than 90 days)
(34) (270) (2,554) (103,908) (85,436) (97,379)
Proceeds from issuance of GECC preferred stock – – – 3,960 – –
Repayment of preferred stock – (3,300) – – – –
Net dispositions (purchases) of GE shares for treasury (4,164) (1,456) (1,263) – – –
Dividends paid to shareowners (7,189) (6,458) (4,790) (6,549) – –
Purchases of subsidiary shares from noncontrolling
   interests
– (4,303) (2,000) – (275) (633)
All other financing activities 32 (75) (330) (2,868) (1,792) (3,318)
Cash from (used for) financing activities – continuing
   operations
(5,284) (14,627) (2,134) (52,493) (33,095) (59,408)
Cash from (used for) financing activities – discontinued
   operations
– – – – (44) (337)
Cash from (used for) financing activities (5,284) (14,627) (2,134) (52,493) (33,139) (59,745)
Effect of exchange rate changes on cash and equivalents 2 (50) (125) 1,276 (791) (208)
Increase (decrease) in cash and equivalents 7,127 (10,859) 10,587 (14,779) 16,424 (4,141)
Cash and equivalents at beginning of year 8,382 19,241 8,654 76,823 60,399 64,540
Cash and equivalents at end of year 15,509 8,382 19,241 62,044 76,823 60,399
Less cash and equivalents of discontinued operations
   at end of year
– – – 103 121 142
Cash and equivalents of continuing operations
   at end of year
$ 15,509 $ 8,382 $ 19,241 $ 61,941 $ 76,702 $ 60,257
Supplemental disclosure of cash flows information
Cash paid during the year for interest $ (545) $ (553) $ (731) $ (12,172) $ (15,018) $ (16,401)
Cash recovered (paid) during the year for income taxes (2,987) (2,303) (2,775) (250) (616) 104

(a)	Represents the adding together of all affiliated companies except General Electric Capital Corporation (GECC or financial services), which is presented on a one-line basis. See Note 1.

(b)	Represents GECC earnings from continuing operations attributable to the Company, net of GECC dividends paid to GE.

In the consolidating data on this page, "GE" means the basis of consolidation as described in Note 1 to the consolidated financial statements; "GECC" means General Electric Capital Corporation and all of its affiliates and associated companies. Separate information is shown for “GE” and “GECC.” Transactions between GE and GECC have been eliminated from the “General Electric Company and consolidated affiliates” columns on the prior page and are discussed in Note ~~27.~~26.

(100)

~~(97)~~

Notes to Consolidated Financial Statements

NOTE 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Accounting Principles

Our financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP).

Consolidation

Our financial statements consolidate all of our affiliates – entities in which we have a controlling financial interest, most often because we hold a majority voting interest. To determine if we hold a controlling financial interest in an entity, we first evaluate if we are required to apply the variable interest entity (VIE) model to the entity, otherwise the entity is evaluated under the voting interest model.

Where we hold current or potential rights that give us the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance combined with a variable interest that gives us the right to receive potentially significant benefits or the obligation to absorb potentially significant losses, we have a controlling financial interest in that VIE. Rights held by others to remove the party with power over the VIE are not considered unless one party can exercise those rights unilaterally. When changes occur to the design of an entity, we reconsider whether it is subject to the VIE model. We continuously evaluate whether we have a controlling financial interest in a VIE.

We hold a controlling financial interest in other entities where we currently hold, directly or indirectly, more than 50% of the voting rights or where we exercise control through substantive participating rights or as a general partner. Where we are a general partner, we consider substantive removal rights held by other partners in determining if we hold a controlling financial interest. We reevaluate whether we have a controlling financial interest in these entities when our voting or substantive participating rights change.

Associated companies are unconsolidated VIEs and other entities in which we do not have a controlling financial interest, but over which we have significant influence, most often because we hold a voting interest of 20% to 50%. Associated companies are accounted for as equity method investments. Results of associated companies are presented on a one-line basis. Investments in, and advances to, associated companies are presented on a one-line basis in the caption “All other assets” in our Statement of Financial Position, net of allowance for losses, that represents our best estimate of probable losses inherent in such assets.

Financial Statement Presentation

We have reclassified certain prior-year amounts to conform to the current-year’s presentation.

Financial data and related measurements are presented in the following categories:

GE – This represents the adding together of all affiliates other than General Electric Capital Corporation (GECC), whose continuing operations are presented on a one-line basis, giving effect to the elimination of transactions among such affiliates.

GECC – This represents the adding together of all affiliates of GECC, giving effect to the elimination of transactions among such affiliates.

Consolidated – This represents the adding together of GE and GECC, giving effect to the elimination of transactions between GE and GECC.

Operating Segments – These comprise our eight businesses, focused on the broad markets they serve: Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Appliances & Lighting (formerly Home & Business ~~Solutions~~Solutions) and GE Capital. Prior-period information has been reclassified to be consistent with how we managed our businesses in ~~2012.~~2013.

~~(98)~~(101)

Unless otherwise indicated, information in these notes to consolidated financial statements relates to continuing operations. Certain of our operations have been presented as discontinued. See Note 2.

On February 22, 2012, we merged our wholly-owned subsidiary, General Electric Capital Services, Inc. (GECS), with and into GECS’ wholly-owned subsidiary, GECC. The merger simplified our financial services’ corporate structure by consolidating financial services entities and assets within our organization and simplifying Securities and Exchange Commission and regulatory reporting. Upon completion of the merger, (i) all outstanding shares of GECC common stock were cancelled, (ii) all outstanding GECS common stock and all GECS preferred stock held by the Company were converted into an aggregate of 1,000 shares of GECC common stock, and (iii) all treasury shares of GECS and all outstanding preferred stock of GECS held by GECC were cancelled. As a result, GECC became the surviving corporation, assumed all of GECS’ rights and obligations and became wholly-owned directly by the Company.

Our financial services segment, GE Capital, comprises the continuing operations of GECC, which includes the run-off insurance operations previously held and managed in GECS. Unless otherwise indicated, references to GECC and the GE Capital segment in this Form 10-K Report relate to the entity or segment as they exist subsequent to the February 22, 2012 merger.

As previously announced, effective October 1, 2012, we reorganized our former Energy Infrastructure segment into three segments – Power & Water, Oil & Gas and Energy Management and began reporting these as separate segments beginning with this Form 10-K Report. We also reorganized our Home & Business Solutions segment by transferring our Intelligent Platforms business to Energy Management.

The effects of translating to U.S. dollars the financial statements of non-U.S. affiliates whose functional currency is the local currency are included in shareowners’ equity. Asset and liability accounts are translated at year-end exchange rates, while revenues and expenses are translated at average rates for the respective periods.

Preparing financial statements in conformity with U.S. GAAP requires us to make estimates based on assumptions about current, and for some estimates future, economic and market conditions (for example, unemployment, market liquidity, the real estate market, etc.), which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current conditions and how we expect them to change in the future, as appropriate, it is reasonably possible that in ~~2013~~2014 actual conditions could be worse than anticipated in those estimates, which could materially affect our results of operations and financial position. Among other effects, such changes could result in future impairments of investment securities, goodwill, intangibles and long-lived assets, incremental losses on financing receivables, establishment of valuation allowances on deferred tax assets and increased tax liabilities.

Sales of Goods and Services

We record all sales of goods and services only when a firm sales agreement is in place, delivery has occurred or services have been rendered and collectibility of the fixed or determinable sales price is reasonably assured.

~~(99)~~

Arrangements for the sale of goods and services sometimes include multiple components. Most of our multiple component arrangements involve the sale of goods and services in the Healthcare segment. Our arrangements with multiple components usually involve an upfront deliverable of large machinery or equipment and future service deliverables such as installation, commissioning, training or the future delivery of ancillary products. In most cases, the relative values of the undelivered components are not significant to the overall arrangement and are typically delivered within three to six months after the core product has been delivered. In such agreements, selling price is determined for each component and any difference between the total of the separate selling prices and total contract consideration (i.e., discount) is allocated pro rata across each of the components in the arrangement. The value assigned to each component is objectively determined and obtained primarily from sources such as the separate selling price for that or a similar item or from competitor prices for similar items. If such evidence is not available, we use our best estimate of selling price, which is established consistent with the pricing strategy of the business and considers product configuration, geography, customer type, and other market specific factors.

Except for goods sold under long-term agreements, we recognize sales of goods under the provisions of U.S. Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) 104, Revenue Recognition. We often sell consumer products and computer hardware and software products with a right of return. We use our accumulated experience to estimate and provide for such returns when we record the sale. In situations where arrangements include customer acceptance provisions based on seller or customer-specified objective criteria, we recognize revenue when we have reliably demonstrated that all specified acceptance criteria have been met or when formal acceptance occurs, respectively. In arrangements where we provide goods for trial and evaluation purposes, we only recognize revenue after customer acceptance occurs. Unless otherwise noted, we do not provide for anticipated losses before we record sales.

(102)

We recognize revenue on agreements for sales of goods and services under power generation unit and uprate contracts, nuclear fuel assemblies, larger oil drilling equipment projects, aeroderivative unit contracts, military development contracts, locomotive production contracts, and long-term construction projects, using long-term construction and production contract accounting. We estimate total long-term contract revenue net of price concessions as well as total contract costs. For goods sold under power generation unit and uprate contracts, nuclear fuel assemblies, aeroderivative unit contracts, military development contracts and locomotive production contracts, we recognize sales as we complete major contract-specified deliverables, most often when customers receive title to the goods or accept the services as performed. For larger oil drilling equipment projects and long-term construction projects, we recognize sales based on our progress ~~towards~~toward contract completion measured by actual costs incurred in relation to our estimate of total expected costs. We measure long-term contract revenues by applying our contract-specific estimated margin rates to incurred costs. We routinely update our estimates of future costs for agreements in process and report any cumulative effects of such adjustments in current operations. We provide for any loss that we expect to incur on these agreements when that loss is probable.

We recognize revenue upon delivery for sales of aircraft engines, military propulsion equipment and related spare parts not sold under long-term product services agreements. Delivery of commercial engines, non-U.S. military equipment and all related spare parts occurs on shipment; delivery of military propulsion equipment sold to the U.S. ~~Government~~government or agencies thereof occurs upon receipt of a Material Inspection and Receiving Report, DD Form 250 or Memorandum of Shipment. Commercial aircraft engines are complex equipment manufactured to customer order under a variety of sometimes complex, long-term agreements. We measure sales of commercial aircraft engines by applying our contract-specific estimated margin rates to incurred costs. We routinely update our estimates of future revenues and costs for commercial aircraft engine agreements in process and report any cumulative effects of such adjustments in current operations. Significant components of our revenue and cost estimates include price concessions and performance-related guarantees as well as material, labor and overhead costs. We measure revenue for military propulsion equipment and spare parts not subject to long-term product services agreements based on the specific contract on a specifically measured output basis. We provide for any loss that we expect to incur on these agreements when that loss is probable; consistent with industry practice, for commercial aircraft engines, we make such provision only if such losses are not recoverable from future highly probable sales of spare parts and services for those engines.

~~(100)~~

We sell product services under long-term product maintenance or extended warranty agreements in our Aviation, Power & Water, Oil & Gas and Transportation segments, where costs of performing services are incurred on other than a straight-line basis. We also sell product services in our Healthcare segment, where such costs generally are expected to be on a straight-line basis. For the Aviation, Power & Water, Oil & Gas and Transportation agreements, we recognize related sales based on the extent of our progress ~~towards~~toward completion measured by actual costs incurred in relation to total expected costs. We routinely update our estimates of future costs for agreements in process and report any cumulative effects of such adjustments in current operations. For the Healthcare agreements, we recognize revenues on a straight-line basis and expense related costs as incurred. We provide for any loss that we expect to incur on any of these agreements when that loss is probable.

NBC Universal (NBCU), which we deconsolidated on January 28, 2011, recorded broadcast and cable television and Internet advertising sales when advertisements were aired, net of provision for any viewer shortfalls (make goods). Sales from theatrical distribution of films were recorded as the films were exhibited; sales of home videos, net of a return provision, when the videos were delivered to and available for sale by retailers; fees from cable/satellite operators when services were provided; and licensing of film and television programming when the material was available for airing.

GECC Revenues from Services (Earned Income)

We use the interest method to recognize income on loans. Interest on loans includes origination, commitment and other non-refundable fees related to funding (recorded in earned income on the interest method). 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, ~~and at that time, previously~~ with the exception of consumer credit card accounts. Beginning in the fourth quarter of 2013, we continue to accrue interest on consumer credit cards until the accounts are written off in the period the account becomes 180 days past due. Previously, we stopped accruing interest on consumer credit cards when the account became 90 days past due. Previously recognized interest income that was accrued but not collected from the borrower is reversed, unless the terms of the loan agreement permit capitalization of accrued interest to the principal balance. 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; otherwise, payments received are applied to reduce the principal balance of the loan.

(103)

We resume accruing interest on nonaccrual, non-restructured commercial loans only when (a) payments are brought current according to the loan’s original terms and (b) future payments are reasonably assured. When we agree to restructured terms with the borrower, we resume accruing interest only when it is reasonably assured that we will recover full contractual payments, and such loans pass underwriting reviews equivalent to those applied to new loans. We resume accruing interest on nonaccrual consumer loans when the customer’s account is less than 90 days past due and collection of such amounts is ~~probable~~.probable. Interest accruals on modified consumer loans that are not considered to be troubled debt restructurings (TDRs) may return to current status (re-aged) only after receipt of at least three consecutive minimum monthly payments or the equivalent cumulative amount, subject to a re-aging limitation of once a year, or twice in a five-year period.

We recognize financing lease income on the interest method to produce a level yield on funds not yet recovered. Estimated unguaranteed residual values are based upon management's best estimates of the value of the leased asset at the end of the lease term. We use various sources of data in determining this estimate, including information obtained from third parties, which is adjusted for the attributes of the specific asset under lease. Guarantees of residual values by unrelated third parties are considered part of minimum lease payments. Significant assumptions we use in estimating residual values include estimated net cash flows over the remaining lease term, anticipated results of future remarketing, and estimated future component part and scrap metal prices, discounted at an appropriate rate.

We recognize operating lease income on a straight-line basis over the terms of underlying leases.

Fees include commitment fees related to loans that we do not expect to fund and line-of-credit fees. We record these fees in earned income on a straight-line basis over the period to which they relate. We record syndication fees in earned income at the time related services are performed, unless significant contingencies exist.

~~(101)~~

Depreciation and Amortization

The cost of GE manufacturing plant and equipment is depreciated over its estimated economic life. U.S. assets are depreciated using an accelerated method based on a sum-of-the-years digits formula; non-U.S. assets are generally depreciated on a straight-line basis.

The cost of GECC equipment leased to others on operating leases is depreciated on a straight-line basis to estimated residual value over the lease term or over the estimated economic life of the equipment.

The cost of GECC acquired real estate investments is depreciated on a straight-line basis to the estimated salvage value over the expected useful life or the estimated proceeds upon sale of the investment at the end of the expected holding period if that approach produces a higher measure of depreciation expense.

The cost of individually significant customer relationships is amortized in proportion to estimated total related sales; cost of other intangible assets is generally amortized on a straight-line basis over the asset’s estimated economic life. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. See Notes 7 and 8.

~~NBC Universal Film and Television Costs~~

Prior to our deconsolidation of NBCU in 2011, our policies were to defer film and television production costs, including direct costs, production overhead, development costs and interest. We did not defer costs of exploitation, which principally comprised costs of film and television program marketing and distribution. We amortized deferred film and television production costs, as well as associated participation and residual costs, on an individual production basis using the ratio of the current period’s gross revenues to estimated total remaining gross revenues from all sources; we stated such costs at the lower of amortized cost or fair value. Estimates of total revenues and costs were based on anticipated release patterns, public acceptance and historical results for similar products. We deferred the costs of acquired broadcast material, including rights to material for use on NBC Universal’s broadcast and cable/satellite television networks, at the earlier of acquisition or when the license period began and the material was available for use. We amortized acquired broadcast material and rights when we broadcast the associated programs; we stated such costs at the lower of amortized cost or net realizable value.

(104)

Losses on Financing Receivables

Losses on financing receivables are recognized when they are incurred, which requires us to make our best estimate of probable losses inherent in the portfolio. The method for calculating the best estimate of losses depends on the size, type and risk characteristics of the related financing receivable. Such an estimate requires consideration of historical loss experience, adjusted for current conditions, and judgments about the probable effects of relevant observable data, including present economic conditions such as delinquency rates, financial health of specific customers and market sectors, collateral values (including housing price indices as applicable), and the present and expected future levels of interest rates. The underlying assumptions, estimates and assessments we use to provide for losses are updated periodically to reflect our view of current conditions and are subject to the regulatory examination process, which can result in changes to our assumptions. Changes in such estimates can significantly affect the allowance and provision for losses. It is possible that we will experience credit losses that are different from our current estimates. Write-offs are deducted from the allowance for losses when we judge the principal to be uncollectible and subsequent recoveries are added to the allowance at the time cash is received on a written-off account.

"Impaired" loans are defined as ~~larger balance~~larger-balance or restructured loans for which it is probable that the lender will be unable to collect all amounts due according to the original contractual terms of the loan agreement.

“Troubled debt restructurings” (TDRs) are those loans for which we have granted a concession to a borrower experiencing financial difficulties where we do not receive adequate compensation. Such loans are classified as impaired, and are individually reviewed for specific reserves.

~~(102)~~

“Nonaccrual financing receivables” are those on which we have stopped accruing interest. We stop accruing interest at the earlier of the time at which collection of an account becomes doubtful or the account becomes 90 days past due, 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.

“Nonearning financing receivables” are a subset of nonaccrual financing receivables for which cash payments are not being received or for which we are on the cost recovery method of accounting (i.e., any payments are accounted for as a reduction of principal). This category excludes loans purchased at a discount (unless they have deteriorated post acquisition). ~~Under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 310,~~ ~~Receivables, these~~These loans are initially recorded at fair value and accrete interest income over the estimated life of the loan based on reasonably estimable cash flows even if the underlying loans are contractually delinquent at acquisition.

As a result of these revisions, consumer credit card receivables of $1,051 million that were previously classified as both nonaccrual and nonearning were returned to accrual status in the fourth quarter of 2013. In addition, $1,524 million of Real Estate and CLL financing receivables previously classified as nonaccrual, paying in accordance with contractual terms and accounted for on the cash basis, were returned to accrual status, while $2,174 million of financing receivables previously classified as nonaccrual and accounted for on the cash basis (primarily in Real Estate and CLL) were placed into the nonearning category based on our assessment of the short-term outlook for resolution through payoff or refinance.

(105)

“Delinquent” receivables are those that are 30 days or more past due based on their contractual terms.

The same financing receivable may meet more than one of the definitions above. Accordingly, these categories are not mutually exclusive and it is possible for a particular loan to meet the definitions of a TDR, impaired loan, nonaccrual loan and nonearning loan and be included in each of these categories. The categorization of a particular loan also may not be indicative of the potential for loss.

Our consumer loan portfolio consists of smaller-balance, homogeneous loans, including credit card receivables, installment loans, auto loans and leases and residential mortgages. We collectively evaluate each portfolio for impairment quarterly. The allowance for losses on these receivables is established through a process that estimates the probable losses inherent in the portfolio based upon statistical analyses of portfolio data. These analyses include migration analysis, in which historical delinquency and credit loss experience is applied to the current aging of the portfolio, together with other analyses that reflect current trends and conditions. We also consider our historical loss experience to date based on actual defaulted loans and overall portfolio indicators including nonearning loans, trends in loan volume and lending terms, credit policies and other observable environmental factors such as unemployment rates and home price indices.

Our commercial loan and lease portfolio consists of a variety of loans and leases, including both larger-balance, non-homogeneous loans and leases and smaller-balance homogeneous loans and leases. Losses on such loans and leases are recorded when probable and estimable. We routinely evaluate our entire portfolio for potential specific credit or collection issues that might indicate an impairment.

For larger-balance, non-homogeneous loans and leases, we consider the financial status, payment history, collateral value, industry conditions and guarantor support related to specific customers. Any delinquencies or bankruptcies are indications of potential impairment requiring further assessment of collectibility. We routinely receive financial as well as rating agency reports on our customers, and we elevate for further attention those customers whose operations we judge to be marginal or deteriorating. We also elevate customers for further attention when we observe a decline in collateral values for asset-based loans. While collateral values are not always available, when we observe such a decline, we evaluate relevant markets to assess recovery alternatives – for example, for real estate loans, relevant markets are local; for commercial aircraft loans, relevant markets are global.

~~(103)~~

Measurement of the loss on our impaired commercial loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of collateral, net of expected selling costs, if the loan is determined to be collateral dependent. We determine whether a loan is collateral dependent if the repayment of the loan is expected to be provided solely by the underlying collateral. Our review process can often result in reserves being established in advance of a modification of terms or designation as a TDR. After providing for specific incurred losses, we then determine an allowance for losses that have been incurred in the balance of the portfolio but cannot yet be identified to a specific loan or lease. This estimate is based upon various statistical analyses considering historical and projected default rates and loss severity and aging, as well as our view on current market and economic conditions. It is prepared by each respective line of business. For Real Estate, this includes assessing the probability of default and the loss given default based on loss history of our portfolio for loans with similar loan metrics and attributes.

(106)

We consider multiple factors in evaluating the adequacy of our allowance for losses on Real Estate financing receivables, including loan-to-value ratios, collateral values at the individual loan level, debt service coverage ratios, delinquency status, and economic factors including interest rate and real estate market forecasts. In addition to ~~evaluating~~ these factors, we ~~deem~~evaluate a Real Estate loan ~~to be impaired~~for impairment classification if its projected loan-to-value ratio at maturity is in excess of 100%, even if the loan is currently paying in accordance with its contractual terms. Substantially all of the loans in the Real Estate portfolio are considered collateral dependent and are measured for impairment based on the fair value of collateral. If foreclosure is deemed probable or if repayment is dependent solely on the sale of collateral, we also include estimated selling costs in our reserve. Collateral values for our Real Estate loans are determined based upon internal cash flow estimates discounted at an appropriate rate and corroborated by external appraisals, as appropriate. Collateral valuations are routinely monitored and updated annually, or more frequently for changes in collateral, market and economic conditions. Further discussion on determination of fair value is in the Fair Value Measurements section below.

Experience is not available for new products; therefore, while we are developing that experience, we set loss allowances based on our experience with the most closely analogous products in our portfolio.

Our loss mitigation strategy intends to minimize economic loss and, at times, can result in rate reductions, principal forgiveness, extensions, forbearance or other actions, which may cause the related loan to be classified as a TDR.

We utilize certain loan modification programs for borrowers experiencing temporary financial difficulties in our Consumer loan portfolio. These loan modification programs are primarily concentrated in our non-U.S. residential mortgage and non-U.S. installment and revolving portfolios and include short-term (three months or less) interest rate reductions and payment deferrals, which were not part of the terms of the original contract. We sold our U.S. residential mortgage business in 2007 and, as such, do not participate in the U.S. government-sponsored mortgage modification programs.

Our allowance for losses on financing receivables on these modified consumer loans is determined based upon a formulaic approach that estimates the probable losses inherent in the portfolio based upon statistical analyses of the portfolio. Data related to redefault experience is also considered in our overall reserve adequacy review. Once the loan has been modified, it returns to current status (re-aged) only after receipt of at least three consecutive minimum monthly payments or the equivalent cumulative amount, subject to a re-aging limitation of once a year, or twice in a five-year period in accordance with the Federal Financial Institutions Examination Council guidelines on Uniform Retail Credit Classification and Account Management policy issued in June 2000. We believe that the allowance for losses would not be materially different had we not re-aged these accounts.

~~(104)~~

For commercial loans, we evaluate changes in terms and conditions to determine whether those changes meet the criteria for classification as a TDR on a loan-by-loan basis. In Commercial Lending and Leasing (CLL), these changes primarily include: changes to covenants, short-term payment deferrals and maturity extensions. For these changes, we receive economic consideration, including additional fees and/or increased interest rates, and evaluate them under our normal underwriting standards and criteria. Changes to Real Estate’s loans primarily include maturity extensions, principal payment acceleration, changes to collateral terms, and cash sweeps, which are in addition to, or sometimes in lieu of, fees and rate increases. The determination of whether these changes to the terms and conditions of our commercial loans meet the TDR criteria includes our consideration of all of the relevant facts and circumstances. When the borrower is experiencing financial difficulty, we carefully evaluate these changes to determine whether they meet the form of a concession. In these circumstances, if the change is deemed to be a concession, we classify the loan as a TDR.

When we repossess collateral in satisfaction of a loan, we write down the receivable against the allowance for losses. Repossessed collateral is included in the caption “All other assets” in the Statement of Financial Position and carried at the lower of cost or estimated fair value less costs to sell.

(107)

For Consumer loans, we write off unsecured closed-end installment loans when they are 120 days contractually past due and unsecured open-ended revolving loans at 180 days contractually past due. We write down consumer loans secured by collateral other than residential real estate when such loans are 120 days past due. Consumer loans secured by residential real estate (both revolving and closed-end loans) are written down to the fair value of collateral, less costs to sell, no later than when they become ~~360~~180 days past due. Unsecured consumer loans in bankruptcy are written off within 60 days of notification of filing by the bankruptcy court or within contractual write-off periods, whichever occurs earlier.

Write-offs on ~~larger balance~~larger-balance impaired commercial loans are based on amounts deemed uncollectible and are reviewed quarterly. Write-offs are determined based on the consideration of many factors, such as expectations of the workout plan or restructuring of the loan, valuation of the collateral and the prioritization of our claim in bankruptcy. Write-offs are recognized against the allowance for losses at the earlier of transaction confirmation ~~(e.g.,~~(for example, discounted pay-off, restructuring, foreclosure, etc.) or not later than 360 days after initial recognition of a specific reserve for a collateral dependent loan. If foreclosure is probable, the write-off is determined based on the fair value of the collateral less costs to sell. ~~Smaller balance,~~Smaller-balance, homogeneous commercial loans are written off at the earlier of when deemed uncollectible or at 180 days past due.

Partial Sales of Business Interests

Gains or losses on sales of affiliate shares where we retain a controlling financial interest are recorded in equity. Gains or losses on sales that result in our loss of a controlling financial interest are recorded in earnings along with remeasurement gains or losses on any investments in the entity that we retained.

Cash and Equivalents

Debt securities and money market instruments with original maturities of three months or less are included in cash equivalents unless designated as available-for-sale and classified as investment securities.

Investment Securities

We report investments in debt and marketable equity securities, and certain other equity securities, at fair value. See Note 21 for further information on fair value. Unrealized gains and losses on available-for-sale investment securities are included in shareowners’ equity, net of applicable taxes and other adjustments. We regularly review investment securities for impairment using both quantitative and qualitative criteria.

~~(105)~~

For debt securities, if we do not intend to sell the security or it is not more likely than not that we will be required to sell the security before recovery of our amortized cost, we evaluate other qualitative criteria to determine whether we do not expect to recover the amortized cost basis of the security, such as the financial health of and specific prospects for the issuer, including whether the issuer is in compliance with the terms and covenants of the security. We also evaluate quantitative criteria including determining whether there has been an adverse change in expected future cash flows. If we do not expect to recover the entire amortized cost basis of the security, we consider the security to be other-than-temporarily impaired, and we record the difference between the security’s amortized cost basis and its recoverable amount in earnings and the difference between the security’s recoverable amount and fair value in other comprehensive income. If we intend to sell the security or it is more likely than not we will be required to sell the security before recovery of its amortized cost basis, the security is also considered other-than-temporarily impaired and we recognize the entire difference between the security’s amortized cost basis and its fair value in earnings. For equity securities, we consider the length of time and magnitude of the amount that each security is in an unrealized loss position. If we do not expect to recover the entire amortized cost basis of the security, we consider the security to be other-than-temporarily impaired, and we record the difference between the security’s amortized cost basis and its fair value in earnings.

Realized gains and losses are accounted for on the specific identification method. Unrealized gains and losses on investment securities classified as trading and certain retained interests are included in earnings.

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Inventories

All inventories are stated at the lower of cost or realizable values. Cost for a significant portion of GE U.S. inventories is determined on a last-in, first-out (LIFO) basis. Cost of other GE inventories is determined on a first-in, first-out (FIFO) basis. LIFO was used for ~~37%~~39% and ~~38%~~37% of GE inventories at December 31, ~~2012~~2013 and ~~2011,~~2012, respectively. GECC inventories consist of finished products held for sale; cost is determined on a FIFO basis.

Goodwill and Other Intangible Assets

We do not amortize goodwill, but test it at least annually for impairment at the reporting unit level. A reporting unit is the operating segment, or ~~a business~~ one level below that operating segment (the component level) if discrete financial information is prepared and regularly reviewed by segment management. However, components are aggregated as a single reporting unit if they have similar economic characteristics. We recognize an impairment charge if the carrying amount of a reporting unit exceeds its fair value and the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill. We use ~~discounted cash flows~~a market approach, when available and appropriate, or the income approach, or a combination of both to establish fair values. When ~~available and as appropriate, we use comparative market multiples to corroborate discounted cash flow results. When all or~~ a portion of a reporting unit is disposed, goodwill is allocated to the gain or loss on disposition based on the relative fair values of the business or businesses disposed and the portion of the reporting unit that will be retained.

We amortize the cost of other intangibles over their estimated useful lives unless such lives are deemed indefinite. The cost of intangible assets is generally amortized on a straight-line basis over the asset’s estimated economic life, except that individually significant customer-related intangible assets are amortized in relation to total related sales. Amortizable intangible assets are tested for impairment based on undiscounted cash flows and, if impaired, written down to fair value based on either discounted cash flows or appraised values. Intangible assets with indefinite lives are tested annually for impairment and written down to fair value as required.

GECC Investment Contracts, Insurance Liabilities and Insurance Annuity Benefits

Certain entities ~~which~~that we consolidate provide guaranteed investment contracts, primarily to states, municipalities and municipal authorities.

Our insurance activities ~~also~~ include providing insurance and reinsurance for life and health risks and providing certain annuity products. Two primary product groups are provided: traditional insurance contracts and investment contracts. Insurance contracts are contracts with significant mortality and/or morbidity risks, while investment contracts are contracts without such risks.

~~(106)~~

For short-duration insurance contracts, including accident and health insurance, we report premiums as earned income over the terms of the related agreements, generally on a pro-rata basis. For traditional long-duration insurance contracts including long-term care, term, whole life and annuities payable for the life of the annuitant, we report premiums as earned income when due.

Premiums received on investment contracts (including annuities without significant mortality risk) are not reported as revenues but rather as deposit liabilities. We recognize revenues for charges and assessments on these contracts, mostly for mortality, contract initiation, administration and surrender. Amounts credited to policyholder accounts are charged to expense.

Liabilities for traditional long-duration insurance contracts represent the present value of such benefits less the present value of future net premiums based on mortality, morbidity, interest and other assumptions at the time the policies were issued or acquired. Liabilities for investment contracts equal the account value, that is, the amount that accrues to the benefit of the contract or policyholder including credited interest and assessments through the financial statement date. For guaranteed investment contracts, the liability is also adjusted as a result of fair value hedging activity.

(109)

Liabilities for unpaid claims and estimated claim settlement expenses represent our best estimate of the ultimate obligations for reported and incurred-but-not-reported claims and the related estimated claim settlement expenses. Liabilities for unpaid claims and estimated claim settlement expenses are continually reviewed and adjusted through current operations.

Fair Value Measurements

For financial assets and liabilities measured at fair value on a recurring basis, fair value is the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date.

Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Preference is given to observable inputs. These two types of inputs create the following fair value hierarchy:

Level 1 –

Quoted prices for identical instruments in active markets.

Level 2 –

Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 –

Significant inputs to the valuation model are unobservable.

We maintain policies and procedures to value instruments using the best and most relevant data available. In addition, we have risk management teams that review valuation, including independent price validation for certain instruments. With ~~regards~~regard to Level 3 valuations (including instruments valued by third parties), we perform a variety of procedures to assess the reasonableness of the valuations. Such reviews, which may be performed quarterly, monthly or weekly, include an evaluation of instruments whose fair value change exceeds predefined thresholds (and/or does not change) and consider the current interest rate, currency and credit environment, as well as other published data, such as rating agency market reports and current appraisals. These reviews are performed within each business by the asset and risk managers, pricing committees and valuation committees. A detailed review of methodologies and assumptions is performed by individuals independent of the business for individual measurements with a fair value exceeding predefined thresholds. This detailed review may include the use of a third-party valuation firm.

~~(107)~~

Recurring Fair Value Measurements

The following sections describe the valuation methodologies we use to measure different financial instruments at fair value on a recurring basis.

Investments in Debt and Equity Securities. When available, we use quoted market prices to determine the fair value of investment securities, and they are included in Level 1. Level 1 securities primarily include publicly traded equity securities.

(110)

For large numbers of investment securities for which market prices are observable for identical or similar investment securities but not readily accessible for each of those investments individually (that is, it is difficult to obtain pricing information for each individual investment security at the measurement date), we obtain pricing information from an independent pricing vendor. The pricing vendor uses various pricing models for each asset class that are consistent with what other market participants would use. The inputs and assumptions to the model of the pricing vendor are derived from market observable sources including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and other market-related data. Since many fixed income securities do not trade on a daily basis, the methodology of the pricing vendor uses available information as applicable such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. The pricing vendor considers available market observable inputs in determining the evaluation for a security. Thus, certain securities may not be priced using quoted prices, but rather determined from market observable information. These investments are included in Level 2 and primarily comprise our portfolio of corporate fixed income, and government, mortgage and asset-backed securities. In infrequent circumstances, our pricing vendors may provide us with valuations that are based on significant unobservable inputs, and in those circumstances we classify the investment securities in Level 3.

Annually, we conduct reviews of our primary pricing vendor to validate that the inputs used in that vendor’s pricing process are deemed to be market observable as defined in the standard. While we are not provided access to proprietary models of the vendor, our reviews have included on-site walk-throughs of the pricing process, methodologies and control procedures for each asset class and level for which prices are provided. Our reviews also include an examination of the underlying inputs and assumptions for a sample of individual securities across asset classes, credit rating levels and various durations, a process we perform each reporting period. In addition, the pricing vendor has an established challenge process in place for all security valuations, which facilitates identification and resolution of potentially erroneous prices. We believe that the prices received from our pricing vendor are representative of prices that would be received to sell the assets at the measurement date (exit prices) and are classified appropriately in the hierarchy.

We use non-binding broker quotes and other third-party pricing services as our primary basis for valuation when there is limited, or no, relevant market activity for a specific instrument or for other instruments that share similar characteristics. We have not adjusted the prices we have obtained. Investment securities priced using non-binding broker quotes and other third-party pricing services are included in Level 3. As is the case with our primary pricing vendor, third-party brokers and other ~~third party-pricing~~third-party pricing services do not provide access to their proprietary valuation models, inputs and assumptions. Accordingly, our risk management personnel conduct reviews of vendors, as applicable, similar to the reviews performed of our primary pricing vendor. In addition, we conduct internal reviews of pricing for all such investment securities quarterly to ensure reasonableness of valuations used in our financial statements. These reviews are designed to identify prices that appear stale, those that have changed significantly from prior valuations, and other anomalies that may indicate that a price may not be accurate. Based on the information available, we believe that the fair values provided by the brokers and other third-party pricing services are representative of prices that would be received to sell the assets at the measurement date (exit prices).

Derivatives. We use closing prices for derivatives included in Level 1, which are traded either on exchanges or liquid over-the-counter markets.

The majority of our derivatives are valued using internal models. The models maximize the use of market observable inputs including interest rate curves and both forward and spot prices for currencies and commodities. Derivative assets and liabilities included in Level 2 primarily represent interest rate swaps, cross-currency swaps and foreign currency and commodity forward and option contracts.

~~(108)~~

Derivative assets and liabilities included in Level 3 primarily represent equity derivatives and interest rate products that contain embedded optionality or prepayment features.

(111)

~~Non-Recurring~~Non-recurring Fair Value Measurements

Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments only in certain circumstances. These assets can include loans and long-lived assets that have been reduced to fair value when they are held for sale, impaired loans that have been reduced based on the fair value of the underlying collateral, cost and equity method investments and long-lived assets that are written down to fair value when they are impaired and the remeasurement of retained investments in formerly consolidated subsidiaries upon a change in control that results in deconsolidation of a subsidiary, if we sell a controlling interest and retain a noncontrolling stake in the entity. Assets that are written down to fair value when impaired and retained investments are not subsequently adjusted to fair value unless further impairment occurs.

The following sections describe the valuation methodologies we use to measure financial and non-financial instruments accounted for at fair value on a non-recurring basis and for certain assets within our pension plans and retiree benefit plans at each reporting period, as applicable.

Financing Receivables and Loans Held for Sale. When available, we use observable market data, including pricing on recent closed market transactions, to value loans that are included in Level 2. When this data is unobservable, we use valuation methodologies using current market interest rate data adjusted for inherent credit risk, and such loans are included in Level 3. When appropriate, loans may be valued using collateral values (see Long-Lived Assets below).

Cost and Equity Method Investments. Cost and equity method investments are valued using market observable data such as quoted prices when available. When market observable data is unavailable, investments are valued using a discounted cash flow model, comparative market multiples or a combination of both approaches as appropriate and other third-party pricing sources. These investments are generally included in Level 3.

Investments in private equity, real estate and collective funds are valued using net asset values. The net asset values are determined based on the fair values of the underlying investments in the funds. Investments in private equity and real estate funds are generally included in Level 3 because they are not redeemable at the measurement date. Investments in collective funds are included in Level 2.

Long-lived Assets, including Real Estate. Fair values of long-lived assets, including aircraft and real estate, are primarily derived internally and are based on observed sales transactions for similar assets. In other instances, for example, collateral types for which we do not have comparable observed sales transaction data, collateral values are developed internally and corroborated by external appraisal information. Adjustments to third-party valuations may be performed in circumstances where market comparables are not specific to the attributes of the specific collateral or appraisal information may not be reflective of current market conditions due to the passage of time and the occurrence of market events since receipt of the information. For real estate, fair values are based on discounted cash flow estimates ~~which~~that reflect current and projected lease profiles and available industry information about capitalization rates and expected trends in rents and occupancy and are corroborated by external appraisals. These investments are generally included in Level 2 or Level 3.

Retained Investments in Formerly Consolidated Subsidiaries. Upon a change in control that results in deconsolidation of a subsidiary, the fair value measurement of our retained noncontrolling stake ~~in the former subsidiary~~ is valued using market observable data such as quoted prices when available, or if not available, an income approach, a market approach, or a combination of both approaches as appropriate. In applying these methodologies, we rely on a number of factors, including actual operating results, future business plans, economic projections, market observable pricing multiples of similar businesses and comparable transactions, and possible control premium. These investments are generally included in Level 1 or Level 3, as appropriate, determined at the time of the transaction.

~~(109)~~(112)

Accounting Changes

On January 1, 2012, we adopted ~~FASB~~Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2011-05, an amendment to ~~ASC~~Accounting Standards Codification (ASC) 220, Comprehensive Income. ASU 2011-05 introduced a new statement, the Consolidated Statement of Comprehensive Income. The amendments affect only the display of those components of equity categorized as other comprehensive income and do not change existing recognition and measurement requirements that determine net earnings.

On January 1, 2012, we adopted FASB ASU 2011-04, an amendment to ASC 820, Fair Value Measurements. ASU 2011-04 clarifies or changes the application of existing fair value measurements, including: that the highest and best use valuation premise in a fair value measurement is relevant only when measuring the fair value of nonfinancial assets; that a reporting entity should measure the fair value of its own equity instrument from the perspective of a market participant that holds that instrument as an asset; to permit an entity to measure the fair value of certain financial instruments on a net basis rather than based on its gross exposure when the reporting entity manages its financial instruments on the basis of such net exposure; that in the absence of a Level 1 input, a reporting entity should apply premiums and discounts when market participants would do so when pricing the asset or liability consistent with the unit of account; and that premiums and discounts related to size as a characteristic of the reporting entity’s holding are not permitted in a fair value measurement. Adopting these amendments had no effect on the financial statements.

On January 1, 2011, we adopted FASB ASU 2009-13 and ASU 2009-14, amendments to ASC 605, Revenue Recognition and ASC 985, Software, respectively, (ASU 2009-13 &14). ASU 2009-13 requires the allocation of consideration to separate components of an arrangement based on the relative selling price of each component. ASU 2009-14 requires certain software-enabled products to be accounted for under the general accounting standards for multiple component arrangements. These amendments were effective for new revenue arrangements entered into or materially modified on or subsequent to January 1, 2011.

Although the adoption of these amendments eliminated the allocation of consideration using residual values, which was applied primarily in our Healthcare segment, the overall impact of adoption was insignificant to our financial statements. In addition, there are no significant changes to the number of components or the pattern and timing of revenue recognition following adoption.

On July 1, 2011, we adopted FASB ASU 2011-02, an amendment to ASC 310, Receivables. This ASU provides guidance for determining whether the restructuring of a debt constitutes a TDR and requires that such actions be classified as a TDR when there is both a concession and the debtor is experiencing financial difficulties. The amendment also clarifies guidance on a creditor’s evaluation of whether it has granted a concession. The amendment applies to restructurings that have occurred subsequent to January 1, 2011. As a result of adopting these amendments on July 1, 2011, we have classified an additional $271 million of financing receivables as TDRs and have recorded an increase of $77 million to our allowance for losses on financing receivables. See Note ~~23.~~

~~On January 1, 2010, we adopted ASU 2009-16 and ASU 2009-17, amendments to ASC 860,~~ ~~Transfers and Servicing, and ASC 810,~~ ~~Consolidation~~, respectively (ASU 2009-16 & 17). ASU 2009-16 eliminated the Qualified Special Purpose Entity (QSPE) concept, and ASU 2009-17 required that all such entities be evaluated for consolidation as VIEs. Adoption of these amendments resulted in the consolidation of all of our sponsored QSPEs. In addition, we consolidated assets of VIEs related to direct investments in entities that hold loans and fixed income securities, a media joint venture and a small number of companies to which we have extended loans in the ordinary course of business and subsequently were subject to a TDR.

~~(110)~~

We consolidated the assets and liabilities of these entities at amounts at which they would have been reported in our financial statements had we always consolidated them. We also deconsolidated certain entities where we did not meet the definition of the primary beneficiary under the revised guidance; however, the effect was insignificant at January 1, 2010. The incremental effect on total assets and liabilities, net of our investment in these entities, was an increase of $31,097 million and $33,042 million, respectively, at January 1, 2010. The net reduction of total equity (including noncontrolling interests) was $1,945 million at January 1, 2010, principally related to the reversal of previously recognized securitization gains as a cumulative effect adjustment to retained earnings. See Note 24 for additional information.6.

NOTE 2. ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS

Assets and Liabilities of Businesses Held for Sale

In the first quarter of 2013, we committed to sell certain of our machining and fabrication businesses at Aviation and our Consumer auto and personal loan business in Portugal. We completed the sale of our Consumer auto and personal loan business in Portugal on July 15, 2013 for proceeds of $83 million. We completed the sale of our machining & fabrication business on December 2, 2013 for proceeds of $108 million.

In the third quarter of 2012, we completed the sale of our CLL business in South Korea for proceeds of $168 million.

(113)

In the second quarter of 2012, we committed to sell a portion of our Business Properties portfolio (Business Property) in Real Estate, including certain commercial loans, the origination and servicing platforms and the servicing rights on loans previously securitized by GECC. We completed the sale of Business Property on October 1, 2012 for proceeds of $2,406 million. We deconsolidated substantially all Real Estate securitization entities in the fourth quarter of 2012 as servicing rights related to these entities were transferred to the buyer at closing.

~~Summarized financial information for businesses held for sale is shown below.~~

December 31 (In millions) 2012 2011

Assets
Cash and equivalents $ 74 $ 149
Financing receivables – net 47 412
Property, plant and equipment – net 31 81
Other 59 69
Assets of businesses held for sale $ 211 $ 711

Liabilities
Short-term borrowings $ 138 $ 252
Other 19 93
Liabilities of businesses held for sale $ 157 $ 345

NBCU

In December 2009, we entered into an agreement with Comcast Corporation (Comcast) to transfer the assets of the NBCU business to a newly formed entity, comprising our NBCU business and Comcast’s cable networks, regional sports networks, certain digital properties and certain unconsolidated investments, in exchange for cash and a 49% interest in the newly formed entity.

On March 19, 2010, NBCU entered into a three-year credit agreement and a 364-day bridge loan agreement. On April 30, 2010, NBCU issued $4,000 million of senior, unsecured notes with maturities ranging from 2015 to 2040 (interest rates ranging from 3.65% to 6.40%). On October 4, 2010, NBCU issued $5,100 million of senior, unsecured notes with maturities ranging from 2014 to 2041 (interest rates ranging from 2.10% to 5.95%). Subsequent to these issuances, the credit agreement and bridge loan agreements were terminated, with a $750 million revolving credit agreement remaining in effect. Proceeds from these issuances were used to repay $1,678 million of existing debt and pay a dividend of $7,394 million to GE.

On September 26, 2010, we acquired approximately 38% of Vivendi S.A.’s (Vivendi) 20% interest in NBCU (7.7% of NBCU’s outstanding shares) for $2,000 million. In January 2011 and prior to the transaction with Comcast, we

~~(111)~~

~~acquired the remaining Vivendi interest in NBCU (12.3% of NBCU’s outstanding shares) for $3,673 million and made an additional payment of $222 million related to the previously purchased shares.~~

On January 28, 2011, we transferred the assets of the NBCU business and Comcast Corporation (Comcast) transferred certain of its assets to a newly formed entity, NBCUniversal LLC (NBCU LLC). In connection with the transaction, we received $6,176 million in cash from Comcast (which included $49 million of transaction-related cost reimbursements) and a 49% interest in NBCU LLC. Comcast ~~holds~~held the remaining 51% interest in NBCU LLC.

In connection with the transaction, we also entered into a number of agreements with Comcast governing the operation of the venture and transitional services, employee, tax and other matters. In addition, Comcast is obligated to share with us potential tax savings associated with ~~Comcast’s~~their purchase of its 51% NBCU LLC member interest, if realized. We did not recognize these potential future payments as consideration for the sale, but ~~will~~ record such payments in income as they are received.

Following the transaction, we deconsolidated NBCU and we ~~account~~accounted for our investment in NBCU LLC under the equity method. We recognized a pre-tax gain on the sale of $3,705 million ($526 million after tax). In connection with the sale, we recorded income tax expense of $3,179 million, reflecting the low tax basis in our investment in the NBCU business and the recognition of deferred tax liabilities related to our 49% investment in NBCU LLC. As our investment in NBCU LLC iswas structured as a partnership for U.S. tax purposes, U.S. taxes ~~are~~were recorded separately from the equity investment.

At December 31, 2012, ~~and December 31, 2011,~~ the carrying amount of our equity investment in NBCU LLC was $18,887 million, ~~and $17,955 million, respectively,~~ reported in the “All other assets” caption in our Statement of Financial Position. At December 31, 2012, ~~and December 31, 2011,~~ deferred tax liabilities related to our NBCU LLC investment were $4,937 million, ~~and $4,699 million, respectively,~~ and were reported in the “Deferred income taxes” caption in our Statement of Financial Position.

On ~~February 12,~~March 19, 2013, we ~~entered into an agreement with Comcast~~closed the transaction to sell our remaining 49% common equity interest in NBCU ~~LLC. In connection with this transaction, we expect~~LLC to ~~receive a~~Comcast for total consideration of ~~approximately $16.7 billion,~~$16,722 million, consisting of ~~$12.0 billion~~$11,997 million in cash, $~~4.0 billion~~$4,000 million in Comcast guaranteed debt and ~~$0.7 billion of~~$725 million in preferred stock. The ~~$4.0 billion~~$4,000 million of debt and the ~~$0.7 billion~~$725 million of preferred shares ~~will~~were both be issued by a wholly-owned subsidiary of Comcast. ~~In addition, GE will no longer be responsible for certain deferred taxes and~~During the first quarter of 2013, we sold both of these investments at approximately par value. Consistent with the initial purchase of the 51% interest of NBCU LLC, Comcast ~~will be~~is obligated to share with us potential tax savings associated with ~~Comcast’s~~their purchase of our remaining 49% NBCU LLC ~~interest.~~interest, if realized. GECC also ~~entered into a transaction to sell~~sold real estate comprising certain floors located at 30 Rockefeller Center, New York and the CNBC property located in Englewood Cliffs, New Jersey to affiliates of NBCU LLC for $~~1.4 billion~~$1,430 million in cash. ~~Both transactions are subject to customary closing conditions and we expect to close by the end~~

As a result of the ~~first quarter~~transactions, we recognized pre-tax gains of ~~2013.~~$1,096 million ($825 million after tax) on the sale of our 49% common equity interest in NBCU LLC and $921 million ($564 million after tax) on the sale of GECC’s real estate properties.

Discontinued Operations

Discontinued operations primarily comprised GE Money Japan (our Japanese personal loan business, Lake, and our Japanese mortgage and card businesses, excluding our investment in GE Nissen Credit Co., Ltd.), our U.S. mortgage business (WMC), ~~BAC Credomatic GECF Inc. (BAC) (our Central American bank and card business),~~ our U.S. recreational vehicle and marine equipment financing business (Consumer RV Marine), Consumer Mexico, Consumer Singapore, our Consumer home lending operations in Australia and New Zealand (Australian Home Lending), our Consumer mortgage business in Ireland (Consumer Ireland), our CLL trailer services business in Europe (CLL Trailer Services) and our Consumer ~~Ireland.~~banking business in Russia (Consumer Russia). Associated results of operations, financial position and cash flows are separately reported as discontinued operations for all periods presented.

(114)

Summarized financial information for discontinued operations is shown below.

~~(112)~~

(In millions)	2012		2011		2010		2013		2012		2011

Operations
Total revenues and other income (expense)	$	(485)	$	329	$	2,060
Total revenues and other income (loss)							$	186	$	191	$	1,074

Earnings (loss) from discontinued operations
before income taxes	$	(612)	$	(189)	$	114	$	(494)	$	(586)	$	(93)
Benefit (provision) for income taxes		169		91		101		155		198		100
Earnings (loss) from discontinued operations,
net of taxes	$	(443)	$	(98)	$	215	$	(339)	$	(388)	$	7

Disposal
Gain (loss) on disposal before income taxes	$	(792)	$	(329)	$	(1,420)	$	(2,027)	$	(792)	$	(329)
Benefit (provision) for income taxes		197		351		236		246		197		351
Gain (loss) on disposal, net of taxes	$	(595)	$	22	$	(1,184)	$	(1,781)	$	(595)	$	22

Earnings (loss) from discontinued operations,
net of taxes(a)	$	(1,038)	$	(76)	$	(969)	$	(2,120)	$	(983)	$	29

(a)	The sum of GE industrial earnings (loss) from discontinued operations, net of taxes, and GECC earnings (loss) from discontinued operations, net of taxes, is reported as GE earnings (loss) from discontinued operations, net of taxes, on the Statement of Earnings.

December 31 (In millions)	2012		2011		2013		2012

Assets
Cash and equivalents	$	103	$	121	$	232	$	191
Financing receivables – net		3		521
Financing receivables - net						711		793
Property, plant and equipment - net						6		706
Other		1,029		1,079		1,390		1,625
Assets of discontinued operations	$	1,135	$	1,721	$	2,339	$	3,315

Liabilities
Deferred income taxes	$	372	$	205	$	248	$	372
Other		1,973		1,424		3,685		2,361
Liabilities of discontinued operations	$	2,345	$	1,629	$	3,933	$	2,733

~~Assets~~Other assets at December 31, ~~2012~~2013 and ~~December 31, 2011,~~2012, primarily comprised ~~cash, financing receivables and~~ a deferred tax asset for a loss carryforward, which expires principally in 2017 and in part in 2019, related to the sale of our GE Money Japan business.

GE Money Japan

During the third quarter of 2007, we committed to a plan to sell our Japanese personal loan business, Lake, upon determining that, despite restructuring, Japanese regulatory limits for interest charges on unsecured personal loans did not permit us to earn an acceptable return. During the third quarter of 2008, we completed the sale of GE Money Japan, which included ~~Lake, along with~~ our Japanese ~~mortgage and card businesses, excluding our investment in GE Nissen Credit Co., Ltd. In connection with~~personal loan business. Under the terms of the sale, we reduced the proceeds from the sale for estimated ~~interest~~ refund claims in excess of the statutory interest rate. Proceeds from the sale were to be increased or decreased based on the actual claims experienced in accordance with loss-sharing terms specified in the sale agreement, with all claims in excess of 258 billion Japanese yen (approximately $3,000 million) remaining our responsibility. The underlying portfolio to which this obligation relates is in runoff status and interest rates were capped for all designated accounts by mid-2009. In the third quarter of 2010, we ~~began~~were required to begin making reimbursements under this arrangement.

~~(113)~~(115)

Overall, excess interest refund claims ~~experience has developed unfavorably. We believe that the level of excess interest refund claims~~activity has been ~~affected by~~difficult to predict and subject to several adverse factors, including the challenging global economic conditions over the last few years, ~~in addition to~~ the financial status of other Japanese personal lenders ~~and consumer behavior. In~~(including the 2010 bankruptcy of a large independent personal loan ~~company in Japan filed for bankruptcy, which precipitated a significant amount of publicity surrounding excess interest refund claims in the Japanese marketplace, along with~~company), substantial ongoing legal ~~advertising. These factors led to substantial increases in claims in 2010~~advertising and early 2011 and significant volatility in claims patterns. We recorded a provision of $630 million during 2012, including $286 million in the fourth quarter, as a result of an excess of claims activity over our previous estimates and revisions to our assumptions about the level of future claim activity. At December 31, 2012, our reserve for these claims was $700 million. In determining reserve levels, we consider analyses of recent and historical claims experience, as well as pending and estimated future refund requests, adjusted for the estimated percentage of customers who present valid requests and associated estimated payments. We determined our reserve assuming the pace of incoming claims will decelerate, that average exposure per claim remains consistent with recent experience, and that we continue to see the impact of loss mitigation efforts.consumer behavior. Since our disposition of the business, incoming claims have continued to ~~decline,~~decline; however, ~~it is highly variable and difficult to predict~~ the pace and pattern of ~~that~~this decline are highly variable, difficult to predict and ~~such assumptions~~can have a significant effect on ~~the total amount~~our estimate of ~~our liability. Holding all other assumptions constant, an adverse change of 20% and 50% in assumed incoming daily claim rate reduction (resulting in an extension~~this refund claims obligation.

The terms of the ~~claim period~~sale agreement provided us with a buyout option to extinguish this obligation at March 31, 2014, and ~~higher incoming claims), would result~~on a biennial basis thereafter if we elected not to exercise our option in 2014. On February 26, 2014, we reached an ~~increase~~agreement with the buyer in which we will pay 175 billion Japanese yen (approximately $1,700 million) to ~~our~~extinguish this obligation.

Our reserve for these refund claims increased from $700 million at December 31, 2012 to $1,836 million at December 31, 2013, as increases to the reserve of ~~approximately $75~~$1,645 million during 2013, including $1,440 million in the fourth quarter, primarily reflecting the February 26, 2014 agreement, were partially offset by refund claims payments of $361 million and ~~$400 million, respectively. We continue to closely monitor~~the effects of a strengthening U.S. dollar against the Japanese yen of $148 million. Our reserve at December 31, 2013 represents the estimated required reimbursements for refund claims through March 31, 2014 in accordance with the 2008 sale agreement and ~~evaluate claims activity.~~the amount provided for under the 2014 agreement with the buyer.

Based on the uncertainties discussed above, and considering other environmental factors in Japan, including the runoff status of the underlying book of business, challenging economic conditions, the impact of laws and regulations (including consideration of proposed legislation that could impose a framework for collective legal action proceedings), and the financial status of other local personal lending companies, it is difficult to develop a meaningful estimate of the aggregate possible claims exposure. These uncertainties and factors could have an adverse effect on claims development.

GE Money Japan ~~losses~~earnings (loss) from discontinued operations, net of taxes, were ~~$649~~$(1,636) million, ~~$238~~$(649) million and ~~$1,671~~$(238) million in 2013, 2012 and 2011, ~~and 2010,~~ respectively.

WMC

During the fourth quarter of 2007, we completed the sale of WMC, our U.S. mortgage business. WMC substantially discontinued all new loan originations by the second quarter of 2007, and is not a loan servicer. In connection with the sale, WMC retained certain representation and warranty obligations related to loans sold to third parties prior to the disposal of the business and contractual obligations to repurchase previously sold loans as to which there was an early payment default. All claims received by WMC for early payment default have either been resolved or are no longer being pursued.

Pending repurchase claims based upon representations and warranties made in connection with loan sales were $5,643 million at December 31, 2013, $5,357 million at December 31, 2012 and $705 million at December 31, ~~2011 and $347 million at December 31, 2010.~~2011. Pending claims represent those active repurchase claims that identify the specific loans tendered for repurchase and, for each loan, the alleged breach of a representation or warranty. As such, they do not include unspecified repurchase claims, such as the Litigation Claims discussed ~~below.~~below, or claims relating to breaches of representations that were made more than six years before WMC was notified of the claim. WMC believes that these ~~types of unspecified~~ repurchase claims do not meet the substantive and procedural requirements for tender under the governing agreements, would be disallowed in legal proceedings under applicable statutes of limitations or are otherwise invalid. The amounts reported in pending claims reflect the purchase price or unpaid principal balances of the loans at the time of purchase and do not give effect to pay downs, accrued interest or fees, or potential recoveries based upon the underlying collateral. In the fourth quarter of 2013, WMC entered into settlements that reduce its exposure on claims asserted in certain securitizations. Pending claim and Litigation Claim amounts reported herein reflect the impact of these settlements. Historically, a small percentage of the total loans WMC originated and sold have ~~qualified~~been treated as “validly tendered,” meaning the ~~loans sold did not satisfy contractual obligations. The volume~~loan was subject to repurchase because there was a breach of ~~claims since~~a representation and warranty that materially and adversely affected the ~~second quarter~~value of ~~2012 reflects increased industry-wide activity by securitization trustees~~the loan, and ~~investors in residential mortgage-backed securities (RMBS) issued in 2006~~the demanding party met all other procedural and ~~2007, and, WMC believes, reflect applicable statutes of limitations considerations.~~ substantive requirements for repurchase.

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Reserves related to WMC pending ~~claims were $633 million at December 31, 2012, reflecting an increase to reserves~~

~~(114)~~

~~in the fourth quarter of 2012 of $25 million due to higher pending claims. The amount of these reserves is based upon pending~~ and estimated future loan repurchase claims were $800 million at December 31, 2013, reflecting a net increase to reserves in the year ended December 31, 2013 of $167 million due to incremental claim activity and updates to WMC’s estimate of future losses. The amount of the reserve is based upon pending loan repurchase requests, ~~and~~ WMC’s historical loss experience and evaluation of claim activity on loans tendered for repurchase.

The following table provides a roll forward of the reserve and pending repurchase claims.

	Reserve							Pending claims
(In millions)	2013			2012			(In millions)	2013			2012

Balance at January 1	$	633		$	143		Balance at January 1	$	5,357		$	705
Provision		354			500		New claims		1,259			4,838
Claim resolutions/ rescissions		(187	)		(10	)	Claim resolutions/ rescissions		(973	)		(186	)
Balance at December 31	$	800		$	633		Balance at December 31	$	5,643		$	5,357

Given the significant recent activity in pending claims and related litigation filed in connection with such claims, it is difficult to assess whether future losses will be consistent with WMC’s past experience. Adverse changes to WMC’s assumptions supporting the reserve for pending and estimated future loan repurchase claims may result in an increase to these reserves. For example, a ~~50% increase to the estimate of future loan repurchase requests and a~~ 100% increase toin the estimated loss rate on loans tendered (and assuming settlements at current demands), would result in an increase to the reserves of approximately ~~$700~~$525 million.

As of December 31, 2013, there were 17 lawsuits involving claims made against WMC arising from alleged breaches of representations and warranties on mortgage loans included in 15 securitizations. Subsequent to December 31, 2013, three of these lawsuits were dismissed leaving 14 lawsuits remaining. WMC initiated one of the cases as the plaintiff; in the other cases WMC is a ~~party to 15 lawsuits involving repurchase claims on loans included~~defendant. The adverse parties in ~~12 securitizations in which the adverse parties~~these cases are securitization trustees or parties claiming to act on their ~~behalf, four of which were initiated by WMC.~~behalf. In ~~eight~~12 of these lawsuits, the adverse parties ~~allege that WMC is contractually required to repurchase~~seek compensatory or other relief for mortgage loans beyond those included in WMC’s previously discussed pending claims at December 31, ~~2012~~2013 (Litigation Claims). These Litigation Claims consist of sampling-based claims in two cases on approximately ~~$900~~$600 million of mortgage loans and, in the other ~~six~~ten cases, claims for repurchase or damages based on the alleged failure to provide notice of defective loans, breach of a corporate representation and warranty, and/or non-specific claims for rescissionary damages on approximately ~~$3,100~~$6,200 million of mortgage ~~loans.~~loans at December 31, 2013. The dismissal of a lawsuit subsequent to December 31, 2013 decreased the pending claims amount by $123 million and the Litigation Claims amount by $318 million. These claims reflect the purchase price or unpaid principal balances of the loans at the time of purchase and do not give effect to pay downs, accrued interest or fees, or potential recoveries based upon the underlying collateral. As noted above, WMC believes that the Litigation Claims ~~are disallowed by~~conflict with the governing agreements and applicable law. As a result, WMC has not included the Litigation Claims in its pending claims or in its estimates of future loan repurchase requests and holds no related reserve as of December 31, ~~2012.~~2013.

(117)

At this point, WMC is unable to develop a meaningful estimate of reasonably possible loss in connection with the Litigation Claims described above due to a number of factors, including the extent to which courts will agree with the theories supporting the Litigation Claims. ~~Specifically,~~The case law on these issues is unsettled, and while several courts ~~in cases not involving WMC~~ have supported some of ~~those~~the theories underlying WMC’s legal defenses, other courts have rejected them. ~~In addition,~~There are a number of pending cases, including WMC ~~lacks experience resolving such claims, and there are few public industry settlements that may serve as benchmarks to estimate a reasonably possible loss.~~cases, which, in the coming months, could provide more certainty regarding the legal status of these claims. An adverse court decision ~~allowing plaintiffs to pursue such claims~~on any of the theories supporting the Litigation Claims could increase WMC’s exposure in some or all of the 1514 lawsuits, ~~and~~ result in ~~additional~~a reclassification of some or all of the Litigation Claims to pending claims and ~~lawsuits.~~provoke new claims and lawsuits on additional loans. However, WMC ~~believes~~continues to believe that it has defenses to all the claims asserted in litigation, including, for example, causation and materiality requirements, limitations on remedies for breach of representations and warranties, and the applicable statutes of limitations. To the extent WMC is required to repurchase loans, WMC’s loss also would be affected by several factors, including pay downs, accrued interest and fees, and the value of the underlying collateral. It is not possible to predict the outcome or impact of these defenses and other factors, any one of which could materially affect the amount of any loss ultimately incurred by WMC on these claims.

WMC has received claims on approximately $2,200 million of mortgage loans after the expiration of the statute of limitations as of December 31, 2013, $1,700 million of which are also included as Litigation Claims. WMC has also received unspecified indemnification demands from depositors/underwriters/sponsors of ~~RMBS~~residential mortgage-backed securities (RMBS) in connection with lawsuits brought by RMBS investors concerning alleged misrepresentations in the securitization offering documents to which WMC is not a party. WMC believes that it has ~~strong~~ defenses to these demands.

The reserve estimates reflect judgment, based on currently available information, and a number of assumptions, including economic conditions, claim activity, pending and threatened litigation, ~~and~~ indemnification demands, estimated repurchase rates, and other activity in the mortgage industry. Actual losses arising from claims against WMC could exceed the reserve amount and additional claims and lawsuits could result if actual claim rates, governmental actions, litigation and indemnification activity, adverse court decisions, settlement activity, actual repurchase rates or losses WMC incurs on repurchased loans differ from its assumptions. It is difficult to develop a meaningful estimate of aggregate possible claims exposure because of uncertainties surrounding economic conditions, the ability and propensity of mortgage loan holders to present and resolve valid claims, governmental actions, mortgage industry activity ~~as well as~~and litigation, court decisions affecting WMC’s defenses, and pending and threatened litigation and indemnification demands against WMC.

WMC revenues and other income ~~(expense)~~(loss) from discontinued operations were $(346) million, $(500) million and $(42) million in 2013, 2012 and ~~$(4) million in 2012,~~ 2011, ~~and 2010,~~ respectively. In total, WMC’s ~~losses~~earnings (loss) from discontinued operations, net of taxes, were ~~$337~~$(232) million, ~~$34~~$(337) million and $7$(34) million in 2013, 2012 ~~2011~~ and ~~2010,~~2011, respectively.

Other Financial Services

In the fourth quarter of 2013, we announced the planned disposition of Consumer Russia and classified the business as discontinued operations. Consumer Russia revenues and other income (loss) from discontinued operations were $260 million, $276 million and $280 million in 2013, 2012 and 2011, respectively. Consumer Russia earnings (loss) from discontinued operations, net of taxes, were $(193) million (including a $170 million loss on the planned disposal), $33 million and $87 million in 2013, 2012 and 2011, respectively.

In the first quarter of 2013, we announced the planned disposition of CLL Trailer Services and classified the business as discontinued operations. We completed the sale in the fourth quarter of 2013 for proceeds of $528 million. CLL Trailer Services revenues and other income (loss) from discontinued operations were $271 million, $399 million and $464 million in 2013, 2012 and 2011, respectively. CLL Trailer Services earnings (loss) from discontinued operations, net of taxes, were $(2) million (including an $18 million gain on disposal), $22 million and $17 million in 2013, 2012 and 2011, respectively.

~~(115)~~(118)

~~Other Financial Services~~

In the first quarter of 2012, we announced the planned disposition of Consumer Ireland and classified the business as discontinued operations. We completed the sale in the third quarter of 2012 for proceeds of $227 million. Consumer Ireland revenues and other income ~~(expense)~~(loss) from discontinued operations were an insignificant amount, $7 million and $13 million in 2013, 2012 and ~~$25 million in 2012,~~ 2011, ~~and 2010,~~ respectively. Consumer Ireland ~~losses~~earnings (loss) from discontinued operations, net of taxes, were ~~$195~~$6 million, $(195) million (including a $121 million loss on disposal)~~, $153 million~~ and ~~$96~~$(153) million in 2013, 2012 ~~2011~~ and ~~2010,~~2011, respectively.

In the second quarter of 2011, we entered into an agreement to sell our Australian Home Lending operations and classified it as discontinued operations. As a result, we recognized an after-tax loss of $148 million in 2011. We completed the sale in the third quarter of 2011 for proceeds of approximately $4,577 million. Australian Home Lending revenues and other income ~~(expense)~~(loss) from discontinued operations were an insignificant amount, $4 million and $250 million in 2013, 2012 and ~~$510 million in 2012,~~ 2011, ~~and 2010,~~ respectively. Australian Home Lending earnings (loss) from discontinued operations, net of taxes, were $14 million, $6 million and $(65) million in 2013, 2012 and ~~$70 million in 2012,~~ 2011, ~~and 2010,~~ respectively.

In the first quarter of 2011, we entered into an agreement to sell our Consumer Singapore business for $692 million. The sale was completed in the second quarter of ~~2011 and resulted in the recognition of a gain on disposal, net of taxes, of $319 million.~~2011. Consumer Singapore revenues and other income ~~(expense)~~(loss) from discontinued operations were $1 million, an insignificant amount and $30 million in 2013, 2012 and ~~$108 million in 2012,~~ 2011, ~~and 2010,~~ respectively. Consumer Singapore earnings (loss) from discontinued operations, net of taxes, were $1 million, $2 million and $333 million (including a $319 million gain on disposal) in 2013, 2012 and ~~$36 million in 2012,~~ 2011, ~~and 2010,~~ respectively.

In 2010, we sold our interest in BAC and recognized an after-tax gain of $780 million. BAC revenues and total earnings from discontinued operations, net of taxes, were $983 million and $854 million, respectively, in 2010.

~~In the fourth quarter of 2010, we entered into agreements to sell our Consumer RV Marine portfolio and Consumer Mexico business.~~ The Consumer RV Marine and Consumer Mexico dispositions were completed during the first quarter and the second quarter of 2011, respectively, for proceeds of $2,365 million and $1,943 million, respectively. Consumer RV Marine revenues and other income ~~(expense)~~(loss) from discontinued operations were an insignificant amount, $1 million and $11 million in 2013, 2012 and ~~$210 million in 2012,~~ 2011, ~~and 2010,~~ respectively. Consumer RV Marine earnings (loss) from discontinued operations, net of taxes, were $(1) million, an insignificant amount and $2 million in 2013, 2012 and ~~$(99) million in 2012,~~ 2011, ~~and 2010,~~ respectively. Consumer Mexico revenues and other income ~~(expense)~~(loss) from discontinued operations were an insignificant amount, $2 million and $67 million in 2013, 2012 and ~~$228 million in 2012,~~ 2011, ~~and 2010,~~ respectively. Consumer Mexico earnings (loss) from discontinued operations, net of taxes, were $(11) million, $(12) million and $30 million in 2013, 2012 and ~~$(59) million in 2012,~~ 2011, ~~and 2010,~~ respectively.

GE Industrial

GE industrial earnings (loss) from discontinued operations, net of taxes, were ~~$148~~$(66) million, ~~$(2)~~$147 million and ~~$(4)~~$(1) million in 2013, 2012 and 2011, ~~and 2010,~~ respectively. During the fourth quarter of 2013, we recorded an increase to our tax reserve related to Spanish taxes for the years prior to our 2007 disposition of our Plastics business. During the third quarter of 2012, we resolved with the Internal Revenue Service the tax treatment of the 2007 disposition of our Plastics business, resulting in a tax benefit of $148 million. The sum of GE industrial earnings (loss) from discontinued operations, net of taxes, and GECC earnings (loss) from discontinued operations, net of taxes, is reported as GE industrial earnings (loss) from discontinued operations, net of taxes, on the Statement of Earnings.

~~(116)~~(119)

NOTE 3. INVESTMENT SECURITIES

Substantially all of our investment securities are classified as available-for-sale. These comprise mainly ~~investment grade~~investment-grade debt securities supporting obligations to annuitants and policyholders in our run-off insurance operations and supporting obligations to holders of guaranteed investment contracts (GICs) in ~~our run-off insurance operations and~~ Trinity ~~investment securities at our treasury operations~~ and investments held in our CLL business collateralized by senior secured loans of high-quality, middle-market companies in a variety of industries. We do not have any securities classified as held-to-maturity.

	2012								2011								2013								2012
			Gross		Gross						Gross		Gross						Gross		Gross						Gross		Gross
	Amortized		unrealized		unrealized		Estimated		Amortized		unrealized		unrealized		Estimated		Amortized		unrealized		unrealized		Estimated		Amortized		unrealized		unrealized		Estimated
December 31 (In millions)	cost		gains		losses		fair value		cost		gains		losses		fair value		cost		gains		losses		fair value		cost		gains		losses		fair value

GE
Debt
U.S. corporate	$	39	$	–	$	–	$	39	$	–	$	–	$	–	$	–	$	21	$	14	$	-	$	35	$	39	$	-	$	-	$	39
Corporate - non-U.S.		6		–		–		6		–		–		–		–		13		-		(1)		12		6		-		-		6
Equity
Available-for-sale		26		–		–		26		18		–		–		18		302		9		(41)		270		26		-		-		26
Trading		3		–		–		3		–		–		–		–		6		-		-		6		3		-		-		3
		74		–		–		74		18		–		–		18		342		23		(42)		323		74		-		-		74
GECC
Debt
U.S. corporate		20,233		4,201		(302)		24,132		20,748		3,432		(410)		23,770		19,600		2,323		(217)		21,706		20,233		4,201		(302)		24,132
State and municipal		4,084		575		(113)		4,546		3,027		350		(143)		3,234		4,245		235		(191)		4,289		4,084		575		(113)		4,546
Residential mortgage-
backed(a)		2,198		183		(119)		2,262		2,711		184		(286)		2,609		1,819		139		(48)		1,910		2,198		183		(119)		2,262
Commercial mortgage-backed		2,930		259		(95)		3,094		2,913		162		(247)		2,828
Commercial mortgage- backed																		2,929		188		(82)		3,035		2,930		259		(95)		3,094
Asset-backed		5,784		31		(77)		5,738		5,102		32		(164)		4,970		7,373		60		(46)		7,387		5,784		31		(77)		5,738
Corporate - non-U.S.		2,391		150		(126)		2,415		2,414		126		(207)		2,333		1,741		103		(86)		1,758		2,391		150		(126)		2,415
Government - non-U.S.		1,617		149		(3)		1,763		2,488		129		(86)		2,531		2,336		81		(7)		2,410		1,617		149		(3)		1,763
U.S. government and federal
agency		3,462		103		–		3,565		3,974		84		–		4,058
U.S. government and
federal agency																		752		45		(27)		770		3,462		103		-		3,565
Retained interests		76		7		–		83		25		10		–		35		64		8		-		72		76		7		-		83
Equity
Available-for-sale		513		86		(3)		596		713		75		(38)		750		203		51		(3)		251		513		86		(3)		596
Trading		245		–		–		245		241		–		–		241		74		-		-		74		245		-		-		245
		43,533		5,744		(838)		48,439		44,356		4,584		(1,581)		47,359		41,136		3,233		(707)		43,662		43,533		5,744		(838)		48,439
Eliminations		(3)		–		–		(3)		(3)		–		–		(3)		(4)		-		-		(4)		(3)		-		-		(3)
Total	$	43,604	$	5,744	$	(838)	$	48,510	$	44,371	$	4,584	$	(1,581)	$	47,374	$	41,474	$	3,256	$	(749)	$	43,981	$	43,604	$	5,744	$	(838)	$	48,510

(a)

Substantially collateralized by U.S. mortgages. Of our total RMBS portfolio at December 31, ~~2012, $1,441~~2013, $1,224 million relates to securities issued by government-sponsored entities and ~~$821~~$686 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.

The fair value of investment securities ~~increased~~decreased to $43,981 million at December 31, 2013, from $48,510 million at December 31, 2012, ~~from $47,374 million at December 31, 2011,~~ primarily due to the sale of U.S. government and federal agency securities at our treasury operations and the impact of ~~lower~~higher interest ~~rates and improved market conditions.~~rates.

~~(117)~~(120)

The following tables present the estimated fair values and gross unrealized losses of our available-for-sale investment securities.

	In loss position for										In loss position for
	Less than 12 months					12 months or more					Less than 12 months						12 months or more
			Gross					Gross						Gross					Gross
	Estimated		unrealized			Estimated		unrealized			Estimated			unrealized			Estimated		unrealized
December 31 (In millions)	fair value		losses		(a)	fair value		losses		(a)	fair value		(a)	losses		(a)(b)	fair value		losses		(b)

2013
Debt
U.S. corporate											$	2,170		$	(122)		$	598	$	(95)
State and municipal												1,076			(82)			367		(109)
Residential mortgage-backed												232			(11)			430		(37)
Commercial mortgage-backed												396			(24)			780		(58)
Asset-backed												112			(2)			359		(44)
Corporate - non-U.S.												108			(4)			454		(83)
Government - non-U.S.												1,479			(6)			42		(1)
U.S. government and federal agency												229			(27)			254		-
Retained interests												2			-			-		-
Equity												253			(44)			-		-
Total											$	6,057		$	(322)		$	3,284	$	(427)

2012
Debt
U.S. corporate	$	434	$	(7)		$	813	$	(295)		$	434		$	(7)		$	813	$	(295)
State and municipal		146		(2)			326		(111)			146			(2)			326		(111)
Residential mortgage-backed		98		(1)			691		(118)			98			(1)			691		(118)
Commercial mortgage-backed		37		–			979		(95)			37			-			979		(95)
Asset-backed		18		(1)			658		(76)			18			(1)			658		(76)
Corporate - non-U.S.		167		(8)			602		(118)			167			(8)			602		(118)
Government - non-U.S.		201		(1)			37		(2)			201			(1)			37		(2)
U.S. government and federal agency		–		–			–		–			-			-			-		-
Retained interests		3		–			–		–			3			-			-		-
Equity		26		(3)			–		–			26			(3)			-		-
Total	$	1,130	$	(23)		$	4,106	$	(815)		$	1,130		$	(23)		$	4,106	$	(815)

2011
Debt
U.S. corporate	$	1,435	$	(241)		$	836	$	(169)
State and municipal		87		(1)			307		(142)
Residential mortgage-backed		219		(9)			825		(277)
Commercial mortgage-backed		244		(23)			1,320		(224)
Asset-backed		100		(7)			850		(157)
Corporate - non-U.S.		330		(28)			607		(179)
Government - non-U.S.		906		(5)			203		(81)
U.S. government and federal agency		502		–			–		–
Retained interests		–		–			–		–
Equity		440		(38)			–		–
Total	$	4,263	$	(352)		$	4,948	$	(1,229)

(a)

The December 31, 2013 table includes the estimated fair value of and gross unrealized losses on Corporate-non-U.S. and Equity securities held by GE. The estimated fair value of and gross unrealized losses on Corporate-non-U.S. securities held by GE were $12 million and $(1) million, respectively. The estimated fair value of and gross unrealized losses on Equity securities held by GE were $222 million and $(41) million, respectively.

~~(a)~~ (b)

Includes gross unrealized losses at December 31, ~~2012~~2013 of ~~$(157)~~$(99) million related to securities that had other-than-temporary impairments previously recognized.

We regularly review investment securities for impairment using both qualitative and quantitative criteria. We presently do not intend to sell the vast majority of our debt securities that are in an unrealized loss position and believe that it is not more likely than not that we will be required to sell these securities before recovery of our amortized cost. We believe that the unrealized loss associated with our equity securities will be recovered within the foreseeable future.

Substantially all of our U.S. corporate debt securities are rated investment grade by the major rating agencies. We evaluate U.S. corporate debt securities based on a variety of factors, such as the financial health of and specific prospects for the issuer, including whether the issuer is in compliance with the terms and covenants of the security. In the event a U.S. corporate debt security is deemed to be other-than-temporarily impaired, we isolate the credit portion of the impairment by comparing the present value of our expectation of cash flows to the amortized cost of the security. We discount the cash flows using the original effective interest rate of the security.

~~(118)~~(121)

The vast majority of our RMBS have ~~investment grade~~investment-grade credit ratings from the major rating agencies and are in a senior position in the capital structure of the ~~deal.~~deals. Of our total RMBS at December 31, 2013 and 2012, ~~and 2011,~~ approximately ~~$471~~$378 million and ~~$515~~$471 million, respectively, relate to residential subprime credit, primarily supporting our guaranteed investment contracts. These are collateralized primarily by pools of individual, direct mortgage loans (a majority of which were originated in 2006 and 2005), not other structured products such as collateralized debt obligations. In addition, of the total residential subprime credit exposure at December 31, 2013 and 2012, ~~and 2011,~~ approximately ~~$219~~$285 million and ~~$277~~$219 million, respectively, was insured by Monoline insurers (Monolines) on which we continue to place reliance.

Our commercial mortgage-backed securities (CMBS) portfolio is collateralized by both diversified pools of mortgages that were originated for securitization (conduit CMBS) and pools of large loans backed by high-quality properties (large loan CMBS), a majority of which were originated in 2007 and 2006. The vast majority of the securities in our CMBS portfolio have ~~investment grade~~investment-grade credit ratings and ~~the vast majority of the securities~~ are in a senior position in the capital ~~structure.~~structure of the deals.

Our asset-backed securities (ABS) portfolio is collateralized by senior secured loans of high-quality, middle-market companies in a variety of industries, as well as a variety of diversified pools of assets such as student loans and credit cards. The vast majority of our ABS are in a senior position in the capital structure of the deals. In addition, substantially all of the securities that are below ~~investment grade~~investment-grade are in an unrealized gain position.

For ABS and RMBS, we estimate the portion of loss attributable to credit using a discounted cash flow model that considers estimates of cash flows generated from the underlying collateral. Estimates of cash flows consider credit risk, interest rate and prepayment assumptions that incorporate management’s best estimate of key assumptions of the underlying collateral, including default rates, loss severity and prepayment rates. For CMBS, we estimate the portion of loss attributable to credit by evaluating potential losses on each of the underlying loans in the security. Collateral cash flows are considered in the context of our position in the capital structure of the deals. Assumptions can vary widely depending upon the collateral type, geographic concentrations and vintage.

If there has been an adverse change in cash flows for RMBS, management considers credit enhancements such as monoline insurance (which are features of a specific security). In evaluating the overall credit worthiness of the Monoline, we use an analysis that is similar to the approach we use for corporate bonds, including an evaluation of the sufficiency of the Monoline’s cash reserves and capital, ratings activity, whether the Monoline is in default or default appears imminent, and the potential for intervention by an insurance or other regulator.

During 2013, we recorded pre-tax, other-than-temporary impairments of $798 million, of which $767 million was recorded through earnings ($15 million relates to equity securities) and $31 million was recorded in accumulated other comprehensive income (AOCI). At January 1, 2013, cumulative impairments recognized in earnings associated with debt securities still held were $588 million. During 2013, we recognized first-time impairments of $389 million and incremental charges on previously impaired securities of $336 million. Of these cumulative amounts recognized through December 31, 2013, $120 million related to securities that were subsequently sold before the end of 2013.

During 2012, we recorded pre-tax, other-than-temporary impairments of $193 million, of which $141 million was recorded through earnings ($39 million relates to equity securities) and $52 million was recorded in ~~accumulated other comprehensive income (AOCI).~~AOCI. At January 1, 2012, cumulative impairments recognized in earnings associated with debt securities still held were $726 million. During 2012, we recognized first-time impairments of $27 million and incremental charges on previously impaired securities of $40 million. ~~These~~Of these cumulative amounts ~~included~~recognized through December 31, 2012, $219 million related to securities that were subsequently ~~sold.~~sold before the end of 2012.

During 2011, we recorded pre-tax, other-than-temporary impairments of $467 million, of which $387 million was recorded through earnings ($81 million relates to equity securities) and $80 million was recorded in AOCI. At January 1, 2011, cumulative impairments recognized in earnings associated with debt securities still held were $500 million. During 2011, we recognized first-time impairments of $58 million and incremental charges on previously impaired securities of $230 million. ~~These~~Of these cumulative amounts ~~included~~recognized through December 31, 2011, $62 million related to securities that were subsequently ~~sold.~~

~~During 2010, we recorded pre-tax, other-than-temporary impairments~~sold before the end of $460 million, of which $253 million was recorded through earnings ($35 million relates to equity securities) and $207 million was recorded in AOCI. At January 1, 2010, cumulative impairments recognized in earnings associated with debt securities still held were $340 million. During 2010, we recognized first-time impairments of $164 million and incremental charges on previously impaired securities of $38 million. These amounts included $41 million related to securities that were subsequently sold.2011.

~~(119)~~(122)

Contractual Maturities of Investment in Available-for-Sale Debt Securities (Excluding
Mortgage-Backed and Asset-Backed Securities)
Amortized Estimated
(In millions) cost fair value

Due in
   2013
$ 1,937 $ 1,960
   2014-2017
7,191 7,204
   2018-2022
4,803 5,304
   2023 and later
17,901 21,998

Contractual Maturities of Investment in Available-for-Sale Debt Securities (Excluding Mortgage-Backed
and Asset-Backed Securities)
	Amortized		Estimated
(In millions)	cost		fair value

Due
Within one year	$	2,397	$	2,417
After one year through five years		3,303		3,506
After five years through ten years		4,984		5,156
After ten years		18,024		19,901

We expect actual maturities to differ from contractual maturities because borrowers have the right to call or prepay certain obligations.

Supplemental information about gross realized gains and losses on available-for-sale investment securities follows.

(In millions)		2012		2011		2010	2013			2012			2011

GE
Gains	$	-	$	-	$	-	$	1		$	-		$	-
Losses, including impairments		(1)		-		-		(20	)		(1	)		-
Net		(1)		-		-		(19	)		(1	)		-
GECC		-		-		-
Gains		177		205		190		239			177			205
Losses, including impairments		(211)		(402)		(281)		(762	)		(211	)		(402	)
Net		(34)		(197)		(91)		(523	)		(34	)		(197	)
Total	$	(35)	$	(197)	$	(91)	$	(542	)	$	(35	)	$	(197	)

Although we generally do not have the intent to sell any specific securities at the end of the period, in the ordinary course of managing our investment securities portfolio, we may sell securities prior to their maturities for a variety of reasons, including diversification, credit quality, yield and liquidity requirements and the funding of claims and obligations to policyholders. In some of our bank subsidiaries, we maintain a certain level of purchases and sales volume principally of non-U.S. government debt securities. In these situations, fair value approximates carrying value for these securities.

Proceeds from investment securities sales and early redemptions by issuers totaled $19,276 million, $12,745 million and $15,606 million in 2013, 2012 and ~~$16,238 million in 2012,~~ 2011, ~~and 2010,~~ respectively, principally from the ~~sales~~sale of Comcast guaranteed debt and short-term securities in our bank subsidiaries and treasury operations.

We recognized pre-tax gains ~~(losses)~~ on trading securities of $48 million, $20 million and $22 million in 2013, 2012 and ~~$(7) million in 2012,~~ 2011, ~~and 2010,~~ respectively.

~~(120)~~(123)

NOTE 4. CURRENT RECEIVABLES

		Consolidated(a)				GE(b)				Consolidated(a)				GE(b)
December 31 (In millions)		2012		2011		2012		2011		2013		2012		2013		2012

Power & Water	$	3,809	$	4,240	$	2,532	$	3,498	$	3,895	$	2,977	$	2,335	$	1,700
Oil & Gas		5,421		4,224		2,637		2,269		5,444		4,656		3,134		1,872
Energy Management		1,600		1,484		800		791		1,540		1,600		686		800
Aviation		4,756		4,355		2,493		2,658		4,307		4,756		2,260		2,493
Healthcare		4,253		4,306		2,012		1,943		4,398		4,253		2,029		2,012
Transportation		485		441		324		347		526		485		318		324
Home & Business Solutions		1,286		1,330		186		184
Corporate Items & eliminations		352		550		344		563
Appliances & Lighting										1,337		1,286		273		186
Corporate items & eliminations										388		351		377		343
		21,962		20,930		11,328		12,253		21,835		20,364		11,412		9,730
Less Allowance for Losses		(462)		(452)		(456)		(446)		(447)		(462)		(442)		(456)
Total	$	21,500	$	20,478	$	10,872	$	11,807	$	21,388	$	19,902	$	10,970	$	9,274

(a)	Included GE industrial customer receivables factored through a GECC affiliate and reported as financing receivables by GECC. See Note ~~27.~~ 26.

(b)

GE current receivables balances at December 31, ~~2012~~2013 and ~~2011,~~2012, before allowance for losses, included ~~$7,881~~$7,441 million and ~~$8,994~~$6,283 million, respectively, from sales of goods and services to customers, and ~~$70~~$37 million and ~~$65~~$70 million at December 31, ~~2012~~2013 and ~~2011,~~2012, respectively, from transactions with associated companies.

GE current receivables of ~~$114~~$127 million and ~~$112~~$114 million at December 31, ~~2012~~2013 and ~~2011,~~2012, respectively, arose from sales, principally of ~~Healthcare and~~ Aviation goods and services, on open account to various agencies of the U.S. government. As a percentage of GE revenues, approximately 4% of GE sales of goods and services were to the U.S. government in 2013, 2012 ~~compared with 4%~~ and ~~5% in 2011 and 2010, respectively.~~2011.

NOTE 5. INVENTORIES

December 31 (In millions)		2012		2011		2013		2012

GE
Raw materials and work in process	$	9,295	$	8,735	$	10,220	$	9,295
Finished goods		6,020		4,971		6,726		6,020
Unbilled shipments		378		485		584		378
		15,693		14,191		17,530		15,693
Less revaluation to LIFO		(398)		(450)		(273)		(398)
		15,295		13,741		17,257		15,295
GECC
Finished goods		79		51		68		79
Total	$	15,374	$	13,792	$	17,325	$	15,374

~~(121)~~(124)

NOTE 6. GECC FINANCING RECEIVABLES, ~~AND~~ ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES AND SUPPLEMENTAL INFORMATION ON CREDIT QUALITY


December 31 (In millions)	2013		2012

Loans, net of deferred income(a)	$	231,268	$	240,634
Investment in financing leases, net of deferred income		26,939		32,471
		258,207		273,105
Less allowance for losses		(5,178)		(4,944)
Financing receivables - net(b)	$	253,029	$	268,161

December 31 (In millions) 2012 2011

Loans, net of deferred income(a) $ 241,465 $ 256,895
Investment in financing leases, net of deferred income 32,471 38,142
273,936 295,037
Less allowance for losses (4,985) (6,190)
Financing receivables - net(b) $ 268,951 $ 288,847

(a)	Deferred income was ~~$2,182~~$2,013 million and ~~$2,329~~$2,184 million at December 31, 2013 and 2012, ~~and December 31, 2011,~~ respectively.

(b)

Financing receivables at December 31, 2013 and 2012 ~~and December 31, 2011~~ included ~~$750~~$544 million and ~~$1,062~~$750 million, respectively, relating to loans that had been acquired in a transfer but have been subject to credit deterioration since ~~origination per ASC 310,~~ ~~Receivables~~.

origination.

GECC financing receivables include both loans and financing leases. Loans represent transactions in a variety of forms, including revolving charge and credit, mortgages, installment loans, intermediate-term loans and revolving loans secured by business assets. The portfolio includes loans carried at the principal amount on which finance charges are billed periodically, and loans carried at gross book value, which includes finance charges.

Investment in financing leases consists of direct financing and leveraged leases of aircraft, railroad rolling stock, autos, other transportation equipment, data processing equipment, medical equipment, commercial real estate and other manufacturing, power generation, and commercial equipment and facilities.

For federal income tax purposes, the leveraged leases and the majority of the direct financing leases are leases in which GECC depreciates the leased assets and is taxed upon the accrual of rental income. Certain direct financing leases are loans for federal income tax purposes. For these transactions, GECC is taxed only on the portion of each payment that constitutes interest, unless the interest is tax-exempt (e.g., certain obligations of state governments).

Investment in direct financing and leveraged leases represents net unpaid rentals and estimated unguaranteed residual values of leased equipment, less related deferred income. GECC has no general obligation for principal and interest on notes and other instruments representing third-party participation related to leveraged leases; such notes and other instruments have not been included in liabilities but have been offset against the related rentals receivable. The GECC share of rentals receivable on leveraged leases is subordinate to the share of other participants who also have security interests in the leased equipment. For federal income tax purposes, GECC is entitled to deduct the interest expense accruing on non-recourse financing related to leveraged leases.

~~(122)~~(125)

Net Investment in Financing Leases

	Total financing leases				Direct financing leases(a)				Leveraged leases(b)
December 31 (In millions)	2013		2012		2013		2012		2013		2012

Total minimum lease payments receivable	$	29,970	$	36,451	$	24,571	$	29,416	$	5,399	$	7,035
Less principal and interest on third-party
non-recourse debt		(3,480)		(4,662)		–		–		(3,480)		(4,662)
Net rentals receivables		26,490		31,789		24,571		29,416		1,919		2,373
Estimated unguaranteed residual value
of leased assets		5,073		6,346		3,067		4,272		2,006		2,074
Less deferred income		(4,624)		(5,664)		(3,560)		(4,453)		(1,064)		(1,211)
Investment in financing leases, net of
deferred income		26,939		32,471		24,078		29,235		2,861		3,236
Less amounts to arrive at net investment
Allowance for losses		(202)		(198)		(192)		(193)		(10)		(5)
Deferred taxes		(4,075)		(4,506)		(1,783)		(2,245)		(2,292)		(2,261)
Net investment in financing leases	$	22,662	$	27,767	$	22,103	$	26,797	$	559	$	970

Total financing leases Direct financing leases(a) Leveraged leases(b)
December 31 (In millions) 2012 2011 2012 2011 2012 2011

Total minimum lease payments receivable $ 36,451 $ 44,157 $ 29,416 $ 33,667 $ 7,035 $ 10,490
Less principal and interest on third-party

    non-recourse debt
(4,662) (6,812) – – (4,662) (6,812)
Net rentals receivables 31,789 37,345 29,416 33,667 2,373 3,678
Estimated unguaranteed residual value of
    leased assets
6,346 7,592 4,272 5,140 2,074 2,452
Less deferred income (5,664) (6,795) (4,453) (5,219) (1,211) (1,576)
Investment in financing leases, net of
    deferred income
32,471 38,142 29,235 33,588 3,236 4,554
Less amounts to arrive at net investment
    Allowance for losses
(198) (294) (193) (281) (5) (13)
    Deferred taxes
(4,506) (6,718) (2,245) (2,938) (2,261) (3,780)
Net investment in financing leases $ 27,767 $ 31,130 $ 26,797 $ 30,369 $ 970 $ 761

(a)	Included ~~$330~~$317 million and ~~$413~~$330 million of initial direct costs on direct financing leases at December 31, 2013 and 2012, ~~and 2011, respectively~~. respectively.

(b)	Included pre-tax income of ~~$81~~$31 million and ~~$116~~$81 million and income tax of $11 million and $32 million during 2013 and ~~$45 million during~~ 2012, ~~and 2011,~~ respectively. Net investment credits recognized on leveraged leases during ~~2012~~2013 and ~~2011~~2012 were insignificant.

Contractual Maturities

	Total		Net rentals		Total		Net rentals
(In millions)	loans		receivable		loans		receivable

Due in
2013	$	56,668	$	8,700
2014		22,076		6,633	$	54,971	$	8,184
2015		19,889		5,235		19,270		6,114
2016		18,214		3,751		19,619		4,209
2017		17,114		2,234		17,281		2,733
2018 and later		48,593		5,236
2018						14,714		1,798
2019 and later						43,121		3,452
		182,554		31,789		168,976		26,490
Consumer revolving loans		58,911		–		62,292		-
Total	$	241,465	$	31,789	$	231,268	$	26,490

We expect actual maturities to differ from contractual maturities.

~~(123)~~(126)

The following tables provide additional information about our financing receivables and related activity in the allowance for losses for our Commercial, Real Estate and Consumer portfolios.

~~Financing Receivables – net~~


December 31 (In millions)	2013		2012

Commercial
CLL
Americas	$	68,585	$	72,517
Europe (a)		37,962		37,037
Asia		9,469		11,401
Other (a)		451		603
Total CLL		116,467		121,558

Energy Financial Services		3,107		4,851

GE Capital Aviation Services (GECAS)		9,377		10,915

Other		318		486
Total Commercial		129,269		137,810

Real Estate		19,899		20,946

Consumer
Non-U.S. residential mortgages		30,501		33,350
Non-U.S. installment and revolving credit		13,677		17,816
U.S. installment and revolving credit		55,854		50,853
Non-U.S. auto		2,054		4,260
Other		6,953		8,070
Total Consumer		109,039		114,349

Total financing receivables		258,207		273,105

Less allowance for losses		(5,178)		(4,944)
Total financing receivables – net	$	253,029	$	268,161

December 31 (In millions) 2012 2011

Commercial
CLL
Americas $ 72,517 $ 80,505
Europe 37,035 36,899
Asia 11,401 11,635
Other 605 436
Total CLL 121,558 129,475

Energy Financial Services 4,851 5,912

GE Capital Aviation Services (GECAS) 10,915 11,901

Other 486 1,282
Total Commercial financing receivables 137,810 148,570

Real Estate
Debt 19,746 24,501
Business Properties(a) 1,200 8,248
Total Real Estate financing receivables 20,946 32,749

Consumer
Non-U.S. residential mortgages 33,451 35,550
Non-U.S. installment and revolving credit 18,546 18,544
U.S. installment and revolving credit 50,853 46,689
Non-U.S. auto 4,260 5,691
Other 8,070 7,244
Total Consumer financing receivables 115,180 113,718

Total financing receivables 273,936 295,037

Less allowance for losses (4,985) (6,190)
Total financing receivables – net $ 268,951 $ 288,847

(a)	~~In 2012,~~During 2013, we ~~completed~~transferred our European equipment services portfolio from CLL Other to CLL Europe. Prior-period amounts were reclassified to conform to the ~~sale of a portion of our Business Properties portfolio.~~current period presentation.

~~(124)~~(127)

Allowance for Losses on Financing Receivables

	Balance at		Provision											Balance at
	January 1,		charged to					Gross						December 31,
(In millions)	2013		operations		Other		(a)	write-offs		(b)	Recoveries		(b)	2013

Commercial
CLL
Americas	$	490	$	292	$	(1)		$	(422)		$	114		$	473
Europe		445		321		12			(441)			78			415
Asia		80		124		(11)			(115)			12			90
Other		6		(3)		-			(3)			-			-
Total CLL		1,021		734		-			(981)			204			978

Energy Financial
Services		9		(1)		-			-			-			8

GECAS		8		9		-			-			-			17

Other		3		(1)		-			(2)			2			2
Total Commercial		1,041		741		-			(983)			206			1,005

Real Estate		320		28		(4)			(163)			11			192

Consumer
Non-U.S. residential mortgages		480		269		10			(458)			57			358
Non-U.S. installment
and revolving credit		582		589		(93)			(967)			483			594
U.S. installment and revolving credit		2,282		3,006		(51)			(2,954)			540			2,823
Non-U.S. auto		67		58		(13)			(126)			70			56
Other		172		127		11			(236)			76			150
Total Consumer		3,583		4,049		(136)			(4,741)			1,226			3,981
Total	$	4,944	$	4,818	$	(140)		$	(5,887)		$	1,443		$	5,178

Balance at Provision Balance at
January 1, charged to Gross December 31,
(In millions) 2012 operations Other (a) write-offs (b) Recoveries (b) 2012

Commercial
CLL
Americas $ 889 $ 109 $ (51) $ (568) $ 111 $ 490
Europe 400 374 (3) (390) 64 445
Asia 157 37 (3) (134) 23 80
Other 4 13 (1) (10) – 6
Total CLL 1,450 533 (58) (1,102) 198 1,021

Energy Financial
    Services
26 4 – (24) 3 9

GECAS 17 4 – (13) – 8

Other 37 1 (20) (17) 2 3
Total Commercial 1,530 542 (78) (1,156) 203 1,041

Real Estate
Debt 949 29 (6) (703) 10 279
Business Properties(c) 140 43 (38) (107) 3 41
Total Real Estate 1,089 72 (44) (810) 13 320

Consumer
Non-U.S. residential
   mortgages
546 111 8 (261) 76 480
Non-U.S. installment
   and revolving

   credit
717 350 26 (1,046) 576 623
U.S. installment and
   revolving credit
2,008 2,666 (24) (2,906) 538 2,282
Non-U.S. auto 101 18 (4) (146) 98 67
Other 199 132 18 (257) 80 172
Total Consumer 3,571 3,277 24 (4,616) 1,368 3,624
Total $ 6,190 $ 3,891 $ (98) $ (6,582) $ 1,584 $ 4,985

(a)	Other primarily included ~~transfers to held-for-sale~~dispositions and 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 ~~our revolving credit portfolios turn over more than once per year or, in all portfolios, can reflect~~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)~~

~~In 2012, we completed the sale of a portion of our Business Properties portfolio.~~

~~(125)~~(128)

	Balance at		Provision											Balance at
	January 1,		charged to					Gross						December 31,
(In millions)	2012		operations		Other		(a)	write-offs		(b)	Recoveries		(b)	2012

Commercial
CLL
Americas	$	889	$	109	$	(51)		$	(568)		$	111		$	490
Europe		400		374		(3)			(390)			64			445
Asia		157		37		(3)			(134)			23			80
Other		4		13		(1)			(10)			–			6
Total CLL		1,450		533		(58)			(1,102)			198			1,021

Energy Financial
Services		26		4		-			(24)			3			9

GECAS		17		4		-			(13)			-			8

Other		37		1		(20)			(17)			2			3
Total Commercial		1,530		542		(78)			(1,156)			203			1,041

Real Estate		1,089		72		(44)			(810)			13			320

Consumer
Non-U.S. residential mortgages		545		112		8			(261)			76			480
Non-U.S. installment
and revolving credit		690		290		24			(974)			552			582
U.S. installment and revolving credit		2,008		2,666		(24)			(2,906)			538			2,282
Non-U.S. auto		101		18		(4)			(146)			98			67
Other		199		132		18			(257)			80			172
Total Consumer		3,543		3,218		22			(4,544)			1,344			3,583
Total	$	6,162	$	3,832	$	(100)		$	(6,510)		$	1,560		$	4,944

Balance at Provision Balance at
January 1, charged to Gross December 31,
(In millions) 2011 operations (a) Other (b) write-offs (c) Recoveries (c) 2011

Commercial
CLL
Americas $ 1,288 $ 281 $ (96) $ (700) $ 116 $ 889
Europe 429 195 (5) (286) 67 400
Asia 222 105 13 (214) 31 157
Other 6 3 (3) (2) – 4
Total CLL 1,945 584 (91) (1,202) 214 1,450

Energy Financial
   Services
22 – (1) (4) 9 26

GECAS 20 – – (3) – 17

Other 58 23 – (47) 3 37
Total Commercial 2,045 607 (92) (1,256) 226 1,530

Real Estate
Debt 1,292 242 2 (603) 16 949
Business Properties 196 82 – (144) 6 140
Total Real Estate 1,488 324 2 (747) 22 1,089

Consumer
Non-U.S. residential
   mortgages
689 117 (13) (296) 49 546
Non-U.S. installment
   and revolving credit
937 490 (30) (1,257) 577 717
U.S. installment and
   revolving credit
2,333 2,241 1 (3,095) 528 2,008
Non-U.S. auto 168 30 (4) (216) 123 101
Other 259 142 (20) (272) 90 199
Total Consumer 4,386 3,020 (66) (5,136) 1,367 3,571
Total $ 7,919 $ 3,951 $ (156) $ (7,139) $ 1,615 $ 6,190

(a)	~~Included a provision of $77 million at Consumer related to the July 1, 2011 adoption of ASU 2011-02.~~

~~(b)~~

Other primarily included transfers to held-for-sale and the effects of currency exchange.

~~(c)~~ (b)

~~(126)~~(129)

	Balance at		Provision								Balance at		Balance at		Provision												Balance at
	January 1,		charged to				Gross				December 31,		January 1,		charged to						Gross						December 31,
(In millions)	2010(a)		operations		Other(b)		write-offs(c)		Recoveries(c)		2010		2011		operations		(a)	Other		(b)	write-offs		(c)	Recoveries		(c)	2011

Commercial
CLL
Americas	$	1,246	$	1,059	$	(11)	$	(1,136)	$	130	$	1,288	$	1,288	$	281		$	(96)		$	(700)		$	116		$	889
Europe		575		269		(37)		(440)		62		429		429		195			(5)			(286)			67			400
Asia		234		153		(6)		(181)		22		222		222		105			13			(214)			31			157
Other		10		(2)		(1)		(1)		–		6		6		3			(3)			(2)			–			4
Total CLL		2,065		1,479		(55)		(1,758)		214		1,945		1,945		584			(91)			(1,202)			214			1,450


Energy Financial
Services		28		65		–		(72)		1		22		22		–			(1)			(4)			9			26

GECAS		104		12		–		(96)		–		20		20		–			–			(3)			–			17

Other		34		33		–		(9)		–		58		58		23			–			(47)			3			37
Total Commercial		2,231		1,589		(55)		(1,935)		215		2,045		2,045		607			(92)			(1,256)			226			1,530


Real Estate														1,488		324			2			(747)			22			1,089
Debt		1,355		764		10		(838)		1		1,292
Business Properties		181		146		(8)		(126)		3		196
Total Real Estate		1,536		910		2		(964)		4		1,488

Consumer
Non-U.S. residential
mortgages		825		165		(38)		(338)		75		689		688		116			(13)			(295)			49			545
Non-U.S. installment
and revolving credit		1,106		1,047		(68)		(1,733)		585		937		898		470			(29)			(1,198)			549			690
U.S. installment and
revolving credit		3,153		3,018		(6)		(4,300)		468		2,333		2,333		2,241			1			(3,095)			528			2,008
Non-U.S. auto		292		91		(61)		(313)		159		168		168		30			(4)			(216)			123			101
Other		292		265		5		(394)		91		259		259		142			(20)			(272)			90			199
Total Consumer		5,668		4,586		(168)		(7,078)		1,378		4,386		4,346		2,999			(65)			(5,076)			1,339			3,543
Total	$	9,435	$	7,085	$	(221)	$	(9,977)	$	1,597	$	7,919	$	7,879	$	3,930		$	(155)		$	(7,079)		$	1,587		$	6,162

(a)	~~Reflects~~Included a provision of $77 million at Consumer related to the ~~effects of our~~July 1, 2011 adoption of ASU ~~2009-16 & 17 on January 1, 2010.~~2011-02.

(b)	Other primarily included transfers to held-for-sale and the effects of currency exchange.

(c)

~~See Note 23 for supplemental~~

(130)

Credit Quality Indicators

We provide further detailed information about the credit quality of our Commercial, Real Estate and Consumer financing receivables portfolios. For each portfolio, we describe the characteristics of the financing receivables and ~~allowance~~provide information about collateral, payment performance, credit quality indicators, and impairment. We manage these portfolios using delinquency and nonearning data as key performance indicators. The categories used within this section such as impaired loans, TDR and nonaccrual financing receivables are defined by the authoritative guidance and we base our categorization on the related scope and definitions contained in the related standards. The categories of nonearning and delinquent are defined by us and are used in our process for ~~losses on~~managing our financing receivables. Definitions of these categories are provided in Note 1.

Past Due Financing Receivables

The following tables display payment performance of Commercial, Real Estate, and Consumer financing receivables.

	2013				2012
	Over 30 days		Over 90 days		Over 30 days		Over 90 days
December 31	past due		past due(a)		past due		past due

Commercial
CLL
Americas	1.1	%	0.5	%	1.1	%	0.5	%
Europe	3.8		2.1		3.7		2.1
Asia	0.5		0.3		0.9		0.6
Other	-		-		0.1		-
Total CLL	1.9		1.0		1.9		1.0

Energy Financial Services	-		-		-		-

GECAS	-		-		-		-

Other	0.1		0.1		2.8		2.8

Total Commercial	1.7		0.9		1.7		0.9

Real Estate	1.2		1.1		2.3		2.2

Consumer
Non-U.S. residential mortgages(b)	11.2		6.9		12.0		7.5
Non-U.S. installment and revolving credit	3.7		1.1		3.8		1.1
U.S. installment and revolving credit	4.4		2.0		4.6		2.0
Non-U.S. auto	4.4		0.7		3.1		0.5
Other	2.5		1.4		2.8		1.7
Total Consumer	6.1		3.2		6.5		3.4
Total	3.5	%	1.9	%	3.7	%	2.1	%

(a)	Included $1,197 million of Consumer loans at December 31, 2013, which are over 90 days past due and continue to accrue interest until the accounts are written off in the period that the account becomes 180 days past due.

(b)	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.

~~(127)~~(131)

Nonaccrual Financing Receivables

	Nonaccrual financing						Nonearning financing
	receivables(a)						receivables(a)
December 31 (Dollars in millions)	2013			2012			2013			2012

Commercial

CLL
Americas	$	1,275		$	1,951		$	1,243		$	1,333
Europe		1,046			1,740			1,046			1,299
Asia		413			395			413			193
Other		-			52			-			52
Total CLL		2,734			4,138			2,702			2,877

Energy Financial Services		4			-			4			-

GECAS		-			3			-			-

Other		6			25			6			13
Total Commercial		2,744	(b)		4,166	(b)		2,712			2,890

Real Estate		2,551	(c)		4,885	(c)		2,301			444

Consumer
Non-U.S. residential mortgages		2,161			2,598			1,766			2,567
Non-U.S. installment and revolving credit		88			213			88			213
U.S. installment and revolving credit		2			1,026			2			1,026
Non-U.S. auto		18			24			18			24
Other		351			427			345			351
Total Consumer		2,620	(d)		4,288	(d)		2,219			4,181
Total	$	7,915		$	13,339		$	7,232		$	7,515


Allowance for losses percentage

Commercial		36.6	%		25.0	%		37.1	%		36.0	%
Real Estate		7.5			6.6			8.3			72.1
Consumer		151.9			83.6			179.4			85.7
Total		65.4	%		37.1	%		71.6	%		65.8	%

(a)

During the fourth quarter of 2013, we revised our methods for classifying financing receivables as nonaccrual and nonearning to more closely align with regulatory guidance. Given that the revised methods result in nonaccrual and nonearning amounts that are substantially the same, we plan to discontinue the reporting of nonearning financing receivables in the first quarter of 2014. Further information on our nonaccrual and nonearning financing receivables is provided in Note 1 to the consolidated financial statements.

(b)	Included $1,397 million and $2,647 million at December 31, 2013 and 2012, respectively, that are currently paying in accordance with their contractual terms.

(c)	Included $2,308 million and $4,461 million at December 31, 2013 and 2012, respectively, that are currently paying in accordance with their contractual terms.

(d)	Included $527 million and $734 million at December 31, 2013 and 2012, respectively, that are currently paying in accordance with their contractual terms.

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Impaired Loans

The following tables provide information about loans classified as impaired and specific reserves related to Commercial, Real Estate and Consumer.

	With no specific allowance						With a specific allowance
	Recorded		Unpaid		Average		Recorded		Unpaid				Average
	investment		principal		investment in		investment		principal		Associated		investment
December 31 (In millions)	in loans		balance		loans		in loans		balance		allowance		in loans

2013

Commercial
CLL
Americas	$	1,670	$	2,187	$	2,154	$	417	$	505	$	96	$	497
Europe		802		1,589		956		580		921		211		536
Asia		302		349		180		111		125		20		93
Other		-		-		-		-		-		-		12
Total CLL		2,774		4,125		3,290		1,108		1,551		327		1,138

Energy Financial Services		-		-		-		4		4		1		2

GECAS		-		-		-		-		-		-		1

Other		2		3		9		4		4		-		5
Total Commercial(a)		2,776		4,128		3,299		1,116		1,559		328		1,146

Real Estate(b)		2,615		3,036		3,058		1,245		1,507		74		1,688

Consumer(c)		109		153		98		2,879		2,948		567		3,058
Total	$	5,500	$	7,317	$	6,455	$	5,240	$	6,014	$	969	$	5,892


2012

Commercial
CLL
Americas	$	2,487	$	2,927	$	2,535	$	557	$	681	$	178	$	987
Europe		1,131		1,901		1,009		643		978		278		805
Asia		62		64		62		109		120		23		134
Other		-		-		43		52		68		6		16
Total CLL		3,680		4,892		3,649		1,361		1,847		485		1,942

Energy Financial Services		-		-		2		-		-		-		7

GECAS		-		-		17		3		3		-		5

Other		17		28		26		8		8		2		40
Total Commercial(a)		3,697		4,920		3,694		1,372		1,858		487		1,994

Real Estate(b)		3,491		3,712		3,773		2,202		2,807		188		3,752

Consumer(c)		105		117		100		3,103		3,141		673		2,949
Total	$	7,293	$	8,749	$	7,567	$	6,677	$	7,806	$	1,348	$	8,695

(a)

We recognized $218 million and $253 million of interest income, including $60 million and $92 million on a cash basis, for the years ended December 31, 2013 and 2012, respectively, principally in our CLL Americas business. The total average investment in impaired loans for the years ended December 31, 2013 and 2012 was $4,445 million and $5,688 million, respectively.

(b)

We recognized $187 million and $329 million of interest income, including $135 million and $237 million on a cash basis, for the years ended December 31, 2013 and 2012, respectively. The total average investment in impaired loans for the years ended December 31, 2013 and 2012 was $4,746 million and $7,525 million, respectively.

(c)

We recognized $221 million and $168 million of interest income, including $3 million and $4 million on a cash basis, for the years ended December 31, 2013 and 2012, respectively, principally in our Consumer-U.S. installment and revolving credit portfolios. The total average investment in impaired loans for the years ended December 31, 2013 and 2012 was $3,156 million and $3,049 million, respectively.

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December 31 (In millions)	2013		2012

Commercial
Non-impaired financing receivables	$	125,377	$	132,741
General reserves		677		554

Impaired loans		3,892		5,069
Specific reserves		328		487

Real Estate
Non-impaired financing receivables	$	16,039	$	15,253
General reserves		118		132

Impaired loans		3,860		5,693
Specific reserves		74		188

Consumer
Non-impaired financing receivables	$	106,051	$	111,141
General reserves		3,414		2,910

Impaired loans		2,988		3,208
Specific reserves		567		673

Total
Non-impaired financing receivables	$	247,467	$	259,135
General reserves		4,209		3,596

Impaired loans		10,740		13,970
Specific reserves		969		1,348

Impaired loans classified as TDRs in our CLL business were $2,961 million and $3,872 million at December 31, 2013 and 2012, respectively, and were primarily attributable to CLL Americas ($1,770 million and $2,577 million, respectively). For the year ended December 31, 2013, we modified $1,509 million of loans classified as TDRs, primarily in CLL Americas ($737 million). Changes to these loans primarily included extensions, interest-only payment periods, debt to equity exchange and forbearance or other actions, which are in addition to, or sometimes in lieu of, fees and rate increases. Of our $1,509 million and $2,936 million of modifications classified as TDRs during 2013 and 2012, respectively, $71 million and $217 million have subsequently experienced a payment default in 2013 and 2012, respectively.

Real Estate TDRs decreased from $5,146 million at December 31, 2012 to $3,625 million at December 31, 2013, primarily driven by resolution of TDRs through paydowns, partially offset by extensions of loans scheduled to mature during 2013, some of which were classified as TDRs upon modification. We deem loan modifications to be TDRs when we have granted a concession to a borrower experiencing financial difficulty and we do not receive adequate compensation in the form of an effective interest rate that is at current market rates of interest given the risk characteristics of the loan or other consideration that compensates us for the value of the concession. The limited liquidity and higher return requirements in the real estate market for loans with higher loan-to-value (LTV) ratios have typically resulted in the conclusion that the modified terms are not at current market rates of interest, even if the modified loans are expected to be fully recoverable. For the year ended December 31, 2013, we modified $1,595 million of loans classified as TDRs. Changes to these loans primarily included maturity extensions, principal payment acceleration, changes to collateral or covenant terms and cash sweeps, which are in addition to, or sometimes in lieu of, fees and rate increases. Of our $1,595 million and $4,351 million of modifications classified as TDRs during 2013 and 2012, respectively, $197 million and $210 million have subsequently experienced a payment default in 2013 and 2012, respectively.

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The vast majority of our Consumer nonaccrual financing receivables are smaller-balance homogeneous loans evaluated collectively, by portfolio, for impairment and therefore are outside the scope of the disclosure requirement for impaired loans. Accordingly, impaired loans in our Consumer business represent restructured smaller-balance homogeneous loans meeting the definition of a TDR, and are therefore subject to the disclosure requirement for impaired loans, and commercial loans in our Consumer–Other portfolio. The recorded investment of these impaired loans totaled $2,988 million (with an unpaid principal balance of $3,101 million) and comprised $109 million with no specific allowance, primarily all in our Consumer–Other portfolio, and $2,879 million with a specific allowance of $567 million at December 31, 2013. The impaired loans with a specific allowance included $261 million with a specific allowance of $35 million in our Consumer–Other portfolio and $2,618 million with a specific allowance of $532 million across the remaining Consumer business and had an unpaid principal balance and average investment of $2,948 million and $3,058 million, respectively, at December 31, 2013.

Impaired loans classified as TDRs in our Consumer business were $2,874 million and $3,041 million at December 31, 2013 and 2012, respectively. We utilize certain loan modification programs for borrowers experiencing financial difficulties in our Consumer loan portfolio. These loan modification programs primarily include interest rate reductions and payment deferrals in excess of three months, which were not part of the terms of the original contract, and are primarily concentrated in our non-U.S. residential mortgage and U.S. credit card portfolios. For the year ended December 31, 2013, we modified $1,441 million of consumer loans for borrowers experiencing financial difficulties, which are classified as TDRs, and included $879 million of non-U.S. consumer loans, primarily residential mortgages, credit cards and personal loans and $562 million of U.S. consumer loans, primarily credit cards. We expect borrowers whose loans have been modified under these programs to continue to be able to meet their contractual obligations upon the conclusion of the modification. Of our $1,441 million and $1,751 million of modifications classified as TDRs during 2013 and 2012, respectively, $266 million and $334 million have subsequently experienced a payment default in 2013 and 2012, respectively.

SUPPLEMENTAL CREDIT QUALITY INFORMATION

Commercial

Substantially all of our Commercial financing receivables portfolio is secured lending and we assess the overall quality of the portfolio based on the potential risk of loss measure. The metric incorporates both the borrower’s credit quality along with any related collateral protection.

Our internal risk ratings process is an important source of information in determining our allowance for losses and represents a comprehensive, statistically validated approach to evaluate risk in our financing receivables portfolios. In deriving our internal risk ratings, we stratify our Commercial portfolios into 21 categories of default risk and/or six categories of loss given default to group into three categories: A, B and C. Our process starts by developing an internal risk rating for our borrowers, which is based upon our proprietary models using data derived from borrower financial statements, agency ratings, payment history information, equity prices and other commercial borrower characteristics. We then evaluate the potential risk of loss for the specific lending transaction in the event of borrower default, which takes into account such factors as applicable collateral value, historical loss and recovery rates for similar transactions, and our collection capabilities. Our internal risk ratings process and the models we use are subject to regular monitoring and validation controls. The frequency of rating updates is set by our credit risk policy, which requires annual Risk Committee approval. The models are updated on a regular basis and statistically validated annually, or more frequently as circumstances warrant.

The table below summarizes our Commercial financing receivables by risk category. As described above, financing receivables are assigned one of 21 risk ratings based on our process and then these are grouped by similar characteristics into three categories in the table below. Category A is characterized by either high-credit-quality borrowers or transactions with significant collateral coverage that substantially reduces or eliminates the risk of loss in the event of borrower default. Category B is characterized by borrowers with weaker credit quality than those in Category A, or transactions with moderately strong collateral coverage that minimizes but may not fully mitigate the risk of loss in the event of default. Category C is characterized by borrowers with higher levels of default risk relative to our overall portfolio or transactions where collateral coverage may not fully mitigate a loss in the event of default.

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	Secured
December 31 (In millions)	A		B		C		Total

2013

CLL
Americas	$	65,444	$	1,587	$	1,554	$	68,585
Europe(a)		35,968		479		1,019		37,466
Asia		8,962		140		218		9,320
Other(a)		101		-		-		101
Total CLL		110,475		2,206		2,791		115,472

Energy Financial Services		2,969		9		-		2,978

GECAS		9,175		50		152		9,377

Other		318		-		-		318
Total	$	122,937	$	2,265	$	2,943	$	128,145

2012

CLL
Americas	$	68,360	$	1,775	$	2,382	$	72,517
Europe(a)		33,756		1,188		1,256		36,200
Asia		10,732		117		372		11,221
Other(a)		159		-		94		253
Total CLL		113,007		3,080		4,104		120,191

Energy Financial Services		4,725		-		-		4,725

GECAS		10,681		223		11		10,915

Other		486		-		-		486
Total	$	128,899	$	3,303	$	4,115	$	136,317

(a)	During 2013, we transferred our European equipment services portfolio from CLL Other to CLL Europe. Prior-period amounts were reclassified to conform to the current period presentation.

For our secured financing receivables portfolio, our collateral position and ability to work out problem accounts mitigates our losses. Our asset managers have deep industry expertise that enables us to identify the optimum approach to default situations. We price risk premiums for weaker credits at origination, closely monitor changes in creditworthiness through our risk ratings and watch list process, and are engaged early with deteriorating credits to minimize economic loss. Secured financing receivables within risk Category C are predominantly in our CLL businesses and are primarily composed of senior term lending facilities and factoring programs secured by various asset types including inventory, accounts receivable, cash, equipment and related business facilities as well as franchise finance activities secured by underlying equipment.

Loans within Category C are reviewed and monitored regularly, and classified as impaired when it is probable that they will not pay in accordance with contractual terms. Our internal risk rating process identifies credits warranting closer monitoring; and as such, these loans are not necessarily classified as nonearning or impaired.

Our unsecured Commercial financing receivables portfolio is primarily attributable to our Interbanca S.p.A. and GE Sanyo Credit acquisitions in Europe and Asia, respectively. At December 31, 2013 and 2012, these financing receivables included $313 million and $458 million rated A, $580 million and $583 million rated B, and $231 million and $452 million rated C, respectively.

Real Estate

Due to the primarily non-recourse nature of our Debt portfolio, loan-to-value ratios provide the best indicators of the credit quality of the portfolio.

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	Loan-to-value ratio
	2013						2012
		Less than		80% to		Greater than		Less than		80% to		Greater than
December 31 (In millions)	80%		95%		95%		80%		95%		95%

Debt	$	15,576	$	1,300	$	2,111	$	13,570	$	2,572	$	3,604

By contrast, the credit quality of the owner occupied/credit tenant portfolio is primarily influenced by the strength of the borrower’s general credit quality, which is reflected in our internal risk rating process, consistent with the process we use for our Commercial portfolio. At December 31, 2013, the internal risk rating of A, B and C for our owner occupied/credit tenant portfolio approximated $571 million, $179 million and $162 million, respectively, as compared to December 31, 2012, ratings of $956 million, $25 million and $219 million, respectively.

Within Real Estate-Debt, these financing receivables are primarily concentrated in our North American and European Lending platforms and are secured by various property types. A substantial majority of the Real Estate-Debt financing receivables with loan-to-value ratios greater than 95% are paying in accordance with contractual terms. Substantially all of these loans and the majority of our owner occupied/credit tenant financing receivables included in Category C are impaired loans that are subject to the specific reserve evaluation process described in Note 1. The ultimate recoverability of impaired loans is driven by collection strategies that do not necessarily depend on the sale of the underlying collateral and include full or partial repayments through third-party refinancing and restructurings.

Consumer

At December 31, 2013, our U.S. consumer financing receivables included private-label credit card and sales financing for approximately 61 million customers across the U.S. with no metropolitan area accounting for more than 6% of the portfolio. Of the total U.S. consumer financing receivables, approximately 67% relate to credit card loans that are often subject to profit and loss-sharing arrangements with the retailer (which are recorded in revenues), and the remaining 33% are sales finance receivables that provide financing to customers in areas such as electronics, recreation, medical and home improvement.

Our Consumer financing receivables portfolio comprises both secured and unsecured lending. Secured financing receivables comprise residential loans and lending to small and medium-sized enterprises predominantly secured by auto and equipment, inventory finance and cash flow loans. Unsecured financing receivables include private-label credit card financing. A substantial majority of these cards are not for general use and are limited to the products and services sold by the retailer. The private-label portfolio is diverse with no metropolitan area accounting for more than 6% of the related portfolio.

Non-U.S. residential mortgages

For our secured non-U.S. residential mortgage book, we assess the overall credit quality of the portfolio through loan-to-value ratios (the ratio of the outstanding debt on a property to the value of that property at origination). In the event of default and repossession of the underlying collateral, we have the ability to remarket and sell the properties to eliminate or mitigate the potential risk of loss. The table below provides additional information about our non-U.S. residential mortgages based on loan-to-value ratios.


	Loan-to-value ratio
	2013							2012
	80% or		Greater than		Greater than		80% or		Greater than		Greater than
December 31 (In millions)	less		80% to 90%		90%		less		80% to 90%		90%

Non-U.S. residential mortgages	$	17,224	$	5,130	$	8,147	$	18,568	$	5,699	$	9,083

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The majority of these financing receivables are in our U.K. and France portfolios and have re-indexed loan-to-value ratios of 77% and 56%, respectively. Re-indexed loan-to-value ratios may not reflect actual realizable values of future repossessions. We have third-party mortgage insurance for about 24% of the balance of Consumer non-U.S. residential mortgage loans with loan-to-value ratios greater than 90% at December 31, 2013. Such loans were primarily originated in France and the U.K.

Installment and Revolving Credit

For our unsecured lending products, including the non-U.S. and U.S. installment and revolving credit and non-U.S. auto portfolios, we assess overall credit quality using internal and external credit scores. Our internal credit scores imply a probability of default that we consistently translate into three approximate credit bureau equivalent credit score categories, including (a) 671 or higher, which are considered the strongest credits; (b) 626 to 670, which are considered moderate credit risk; and (c) 625 or less, which are considered weaker credits.

	Internal ratings translated to approximate credit bureau equivalent score
	2013						2012
	671 or		626 to		625 or		671 or		626 to		625 or
December 31 (In millions)	higher		670		less		higher		670		less

Non-U.S. installment and revolving credit	$	8,310	$	2,855	$	2,512	$	10,228	$	4,267	$	3,321
U.S. installment and revolving credit		36,723		11,101		8,030		33,204		9,753		7,896
Non-U.S. auto		1,395		373		286		3,141		666		453

Of those financing receivable accounts with credit bureau equivalent scores of 625 or less at December 31, 2013, 97% relate to installment and revolving credit accounts. These smaller-balance accounts have an average outstanding balance less than one thousand U.S. dollars and are primarily concentrated in our retail card and sales finance receivables in the U.S. (which are often subject to profit and loss-sharing arrangements), and closed-end loans outside the U.S., which minimizes the potential for loss in the event of default. For lower credit scores, we adequately price for the incremental risk at origination and monitor credit migration through our risk ratings process. We continuously adjust our credit line underwriting management and collection strategies based on customer behavior and risk profile changes.

Consumer – Other

Secured lending in Consumer – Other comprises loans to small and medium-sized enterprises predominantly secured by auto and equipment, inventory finance and cash flow loans. We develop our internal risk ratings for this portfolio in a manner consistent with the process used to develop our Commercial credit quality indicators, described above. We use the borrower’s credit quality and underlying collateral strength to determine the potential risk of loss from these activities.

At December 31, 2013, Consumer – Other financing receivables of $6,137 million, $315 million and $501 million were rated A, B and C, respectively. At December 31, 2012, Consumer – Other financing receivables of $6,873 million, $451 million and $746 million were rated A, B and C, respectively.

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NOTE 7. PROPERTY, PLANT AND EQUIPMENT

	Depreciable							Depreciable
	lives-new							lives-new
December 31 (Dollars in millions)	(in years)				2012		2011	(in years)				2013		2012

Original cost
GE
Land and improvements		8	(a)	$	612	$	611		8	(a)	$	707	$	612
Buildings, structures and related equipment		8-40			8,361		7,823		8-40			8,910		8,361
Machinery and equipment		4-20			24,090		22,071		4-20			25,323		24,090
Leasehold costs and manufacturing plant
under construction		1-10			2,815		2,538
Leasehold costs and manufacturing plant under construction									1-10			3,309		2,815
					35,878		33,043					38,249		35,878

GECC(b)
Land and improvements, buildings, structures
and related equipment		1-36	(a)		2,624		3,110
Land and improvements, buildings, structures and related equipment									1-35	(a)		2,504		2,485
Equipment leased to others
Aircraft		19-21			49,954		46,240		20			50,337		49,954
Vehicles		1-28			17,574		15,278		1-20			14,656		15,952
Railroad rolling stock		4-50			4,210		4,324		4-50			4,636		4,180
Construction and manufacturing		1-30			3,055		2,644		1-30			2,916		3,055
All other		3-27			3,427		3,438		7-27			3,518		3,427
					80,844		75,034					78,567		79,053
Eliminations					41		40					(347)		(363)
Total				$	116,763	$	108,117				$	116,469	$	114,568

Net carrying value
GE
Land and improvements				$	582	$	584				$	671	$	582
Buildings, structures and related equipment					4,003		3,827					4,205		4,003
Machinery and equipment					9,061		7,648					9,701		9,061
Leasehold costs and manufacturing plant
under construction					2,387		2,224
Leasehold costs and manufacturing plant under construction												2,997		2,387
					16,033		14,283					17,574		16,033
GECC(b)
Land and improvements, buildings, structures
and related equipment					1,074		1,499
Land and improvements, buildings, structures and related equipment												1,025		999
Equipment leased to others
Aircraft(c)					36,231		34,271					34,938		36,231
Vehicles					9,263		8,772					8,312		8,634
Railroad rolling stock					2,746		2,853					3,129		2,744
Construction and manufacturing					2,069		1,670					1,955		2,069
All other					2,290		2,354					2,248		2,290
					53,673		51,419					51,607		52,967
Eliminations					37		37					(354)		(367)
Total				$	69,743	$	65,739				$	68,827	$	68,633

(a)	Depreciable lives exclude land.

(b)	Included ~~$1,467~~$1,353 million and ~~$1,570~~$1,466 million of original cost of assets leased to GE with accumulated amortization of ~~$452~~$342 million and ~~$445~~$451 million at December 31, ~~2012~~2013 and ~~2011,~~2012, respectively.

(c)

The GECAS business of GE Capital recognized impairment losses of $732 million and $242 million in 2013 and 2012, ~~and $301 million in 2011~~respectively. These losses are recorded in the caption “Other costs and expenses” in the Statement of Earnings to reflect adjustments to fair value based on an evaluation of average current market values (obtained from third parties) of similar type and age aircraft, which are adjusted for the attributes of the specific aircraft under lease.

Consolidated depreciation and amortization related to property, plant and equipment was ~~$9,346~~$9,762 million, ~~$9,185~~$9,192 million and ~~$9,786~~$8,986 million in 2013, 2012 and 2011, ~~and 2010,~~ respectively.

~~(128)~~

Amortization of GECC equipment leased to others was ~~$6,243~~$6,696 million, ~~$6,253~~$6,097 million and ~~$6,786~~$6,063 million in 2013, 2012 and 2011, ~~and 2010,~~ respectively.

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Noncancellable future rentals due from customers for equipment on operating leases at December 31, ~~2012,~~2013, are as follows:

(In millions)

Due in
2013	$	7,507
2014		6,168	$	7,168
2015		4,946		5,925
2016		3,863		4,838
2017		3,000		3,823
2018 and later		8,286
2018				3,070
2019 and later				7,695
Total	$	33,770	$	32,519

On September 2, 2011, we purchased a 90% interest in Converteam for $3,586 million. In connection with the transaction, we entered into an arrangement to purchase the remaining 10% at the two-year anniversary of the acquisition date for 343 million ~~Euros~~euros (approximately ~~$470~~$465 million). This amount was recorded as a liability at the date of ~~acquisition.~~acquisition and was paid out in October 2013.

~~(131)~~

~~(141)~~(150)

The following tables present the changes in Level 3 investments for the GE Pension Plan.

Changes in Level 3 Investments for the Year Ended December 31, 2012
Changes in Level 3 Investments for the Year Ended December 31, 2013														Changes in Level 3 Investments for the Year Ended December 31, 2013




							Purchases,		Transfers											Purchases,		Transfers
							issuances		in and/or											issuances		in and/or
	January 1,		Net realized		Net unrealized		and		out of			December 31,		January 1,		Net realized		Net unrealized		and		out of			December 31,
(In millions)	2012		gains (losses)		gains (losses)		settlements		Level 3		(a)	2012		2013		gains (losses)		gains (losses)		settlements		Level 3		(a)	2013

Debt securities
Fixed income and cash
investment funds	$	62	$	–	$	9	$	(21)	$	–		$	50	$	50	$	(7)	$	-	$	(43)	$	-		$	-
U.S. corporate		3		(1)		–		(2)		–			–
Residential mortgage-backed		5		(2)		–		–		–			3		3		-		-		-		(3)			-
Other debt securities		146		(2)		–		(122)		–			22		22		-		-		(22)		-			-
Private equities		6,786		133		438		(479)		–			6,878		6,878		525		588		(1,675)		(47)			6,269
Real estate		3,274		20		279		(217)		–			3,356		3,356		23		330		(355)		-			3,354
Other investments		1,709		32		72		(71)		(48)			1,694		1,694		(1)		200		(77)		(194)			1,622
	$	11,985	$	180	$	798	$	(912)	$	(48)		$	12,003	$	12,003	$	540	$	1,118	$	(2,172)	$	(244)		$	11,245

Other pension plans’ assets were ~~$9,702~~$11,059 million and ~~$8,381~~$9,702 million at December 31, ~~2012~~2013 and ~~December 31, 2011,~~2012, respectively. Equity and debt securities amounting to ~~$8,497~~$9,781 million and $~~7,284~~$8,497 million represented approximately 89% of total investments at both December 31, ~~2012~~2013 and 2012. The plans’ investments were classified as 11% Level 1, 78% Level 2 and 11% Level 3 at December 31, ~~2011.~~2013. The plans’ investments were classified as 14% Level 1, 75% Level 2 and 11% Level 3 at December 31, 2012. The ~~plans’ investments were classified as 13% Level 1, 76% Level 2 and 11% Level 3 at December 31, 2011. The~~ changes in Level 3 investments were insignificant for the years ended December 31, ~~2012~~2013 and ~~2011.~~2012.

In ~~2013,~~2014, we estimate that we will amortize ~~$245~~$215 million of prior service cost and ~~$3,650~~$2,565 million of net actuarial loss for the principal pension plans from shareowners’ equity into pension cost. For other pension plans, the estimated prior service cost and net actuarial loss to be amortized in ~~2013~~2014 will be ~~$10~~$5 million and $~~350~~$215 million, respectively. Comparable amortized amounts in ~~2012,~~2013, respectively, were ~~$279~~$246 million and ~~$3,421~~$3,664 million for the principal pension plans and $8$7 million and ~~$280~~$343 million for other pension plans.

~~(149)~~(158)

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:

(In millions)		2012		2011		2013		2012

Balance at January 1	$	5,230	$	6,139	$	5,445	$	5,230
Additions for tax positions of the current year		293		305		771		293
Additions for tax positions of prior years		882		817		872		882
Reductions for tax positions of prior years		(723)		(1,828)		(1,140)		(723)
Settlements with tax authorities		(191)		(127)		(98)		(191)
Expiration of the statute of limitations		(46)		(76)		(34)		(46)
Balance at December 31	$	5,445	$	5,230	$	5,816	$	5,445

~~(164)~~

Non-Recurring Fair Value Measurements

~~(167)~~

Investment contract benefits

~~(168)~~

The notional amounts of derivative contracts represent the basis upon which interest and other payments are calculated and are reported gross, except for offsetting foreign currency forward contracts that are executed in order to manage our currency risk of net investment in foreign subsidiaries. Of the outstanding notional amount of ~~$325,000~~$320,000 million, approximately 87%, or ~~$282,000~~$277,000 million, is associated with reducing or eliminating the interest rate, currency or market risk between financial assets and liabilities in our financial services businesses. The remaining derivative activities primarily relate to hedging against adverse changes in currency exchange rates and commodity prices related to anticipated sales and purchases and contracts containing certain clauses ~~which~~that meet the accounting definition of a derivative. The instruments used in these activities are designated as hedges when practicable. When we are not able to apply hedge accounting, or when the derivative and the hedged item are both recorded in earnings concurrently, the derivatives are deemed economic hedges and hedge accounting is not applied. This most frequently occurs when we hedge a recognized foreign currency transaction (e.g., a receivable or payable) with a derivative. Since the effects of changes in exchange rates are reflected concurrently in earnings for both the derivative and the transaction, the economic hedge does not require hedge accounting.

~~(169)~~(180)

	2013				2012
(In millions)	Gain (loss)		Gain (loss)		Gain (loss)		Gain (loss)
	on hedging		on hedged		on hedging		on hedged
	derivatives		items		derivatives		items

Interest rate contracts	$	(5,258)	$	5,180	$	708	$	(1,041)
Currency exchange contracts		(7)		6		(68)		98

2012 2011
(In millions) Gain (loss) Gain (loss) Gain (loss) Gain (loss)
on hedging on hedged on hedging on hedged
derivatives items derivatives items

Interest rate contracts $ 708 $ (1,041) $ 5,888 $ (6,322)
Currency exchange contracts (169) 199 119 (144)

Fair value hedges resulted in ~~$(303)~~$(79) million and ~~$(459)~~ $(303) million of ineffectiveness in ~~2012~~2013 and ~~2011,~~2012, respectively. In both ~~2012~~2013 and ~~2011,~~2012, there were insignificant amounts excluded from the assessment of effectiveness.

Cash flow hedges

We use interest rate, currency exchange and commodity derivatives to reduce the variability of expected future cash flows associated with ~~variable rate~~variable-rate borrowings and commercial purchase and sale transactions, including commodities. For derivatives that are designated in a cash flow hedging relationship, the effective portion of the change in fair value of the derivative is reported as a component of AOCI and reclassified into earnings contemporaneously and in the same caption with the earnings effects of the hedged ~~transaction~~.transaction.

The following table provides information about the amounts recorded in AOCI, as well as the gain (loss) recorded in earnings, primarily in GECC revenue from services, interest and other financial charges, and other costs and expenses, when reclassified out of AOCI, for the years ended December 31, 2013 and 2012, ~~and 2011.~~respectively. See Note 15 for additional information about reclassifications out of AOCI.

	Gain (loss) recognized				Gain (loss) reclassified from				Gain (loss) recognized				Gain (loss) reclassified from
	in AOCI				AOCI into earnings				in AOCI				AOCI into earnings
(In millions)	2012		2011		2012		2011		2013		2012		2013		2012



Interest rate contracts	$	(158)	$	(302)	$	(499)	$	(820)	$	(26)	$	(158)	$	(364)	$	(499)
Currency exchange contracts		317		(292)		(6)		(370)		941		1,004		817		681
Commodity contracts		6		(13)		(5)		10		(6)		6		(5)		(5)
Total	$	165	$	(607)	$	(510)	$	(1,180)	$	909	$	852	$	448	$	177

~~(171)~~(182)

NOTE 23. ~~SUPPLEMENTAL INFORMATION ABOUT THE CREDIT QUALITY OF FINANCING RECEIVABLES AND ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES~~

We provide further detailed information about the credit quality of our Commercial, Real Estate and Consumer financing receivables portfolios. For each portfolio, we describe the characteristics of the financing receivables and provide information about collateral, payment performance, credit quality indicators, and impairment. We manage these portfolios using delinquency and nonearning data as key performance indicators. The categories used within this section such as impaired loans, TDR and nonaccrual financing receivables are defined by the authoritative guidance and we base our categorization on the related scope and definitions contained in the related standards. The categories of nonearning and delinquent are defined by us and are used in our process for managing our financing receivables. Definitions of these categories are provided in Note 1.

~~COMMERCIAL~~

~~Financing Receivables and Allowance for Losses~~

~~The following table provides further information about general and specific reserves related to Commercial financing receivables.~~

Financing receivables
December 31 (In millions) 2012 2011

CLL
   Americas
$ 72,517 $ 80,505
   Europe
37,035 36,899
   Asia
11,401 11,635
   Other
605 436
Total CLL 121,558 129,475

Energy Financial Services 4,851 5,912

GECAS 10,915 11,901

Other 486 1,282

Total Commercial financing receivables, before allowance for losses $ 137,810 $ 148,570

Non-impaired financing receivables $ 132,741 $ 142,908
General reserves 554 718

Impaired loans 5,069 5,662
Specific reserves 487 812

~~Past Due Financing Receivables~~

~~The following table displays payment performance of Commercial financing receivables.~~

~~(172)~~

2012 2011
Over 30 days Over 90 days Over 30 days Over 90 days
December 31 past due past due past due past due

CLL
   Americas
1.1 % 0.5 % 1.3 % 0.8 %
   Europe
3.7 2.1 3.8 2.1
   Asia
0.9 0.6 1.3 1.0
   Other
0.1 – 2.0 0.1
Total CLL 1.9 1.0 2.0 1.2

Energy Financial Services – – 0.3 0.3

GECAS – – – –

Other 2.8 2.8 3.7 3.5

Total 1.7 0.9 1.8 1.1

~~Nonaccrual Financing Receivables~~

The following table provides further information about Commercial financing receivables that are classified as nonaccrual. Of our $4,166 million and $4,718 million of nonaccrual financing receivables at December 31, 2012 and December 31, 2011, respectively, $2,647 million and $1,227 million are currently paying in accordance with their contractual terms, respectively.

Nonaccrual financing Nonearning financing
receivables receivables
December 31 (Dollars in millions) 2012 2011 2012 2011

CLL
   Americas
$ 1,951 $ 2,417 $ 1,333 $ 1,862
   Europe
1,740 1,599 1,299 1,167
   Asia
395 428 193 269
   Other
52 68 52 11
Total CLL 4,138 4,512 2,877 3,309

Energy Financial Services – 22 – 22

GECAS 3 69 �� 55

Other 25 115 13 65
Total $ 4,166 $ 4,718 $ 2,890 $ 3,451

Allowance for losses percentage 25.0 % 32.4 % 36.0 % 44.3 %

~~(173)~~

~~Impaired Loans~~

~~The following table provides information about loans classified as impaired and specific reserves related to Commercial.~~

With no specific allowance With a specific allowance
Recorded Unpaid Average Recorded Unpaid Average
investment principal investment in investment principal Associated investment
December 31 (In millions) in loans balance loans in loans balance allowance in loans

2012

CLL
   Americas
$ 2,487 $ 2,927 $ 2,535 $ 557 $ 681 $ 178 $ 987
   Europe
1,131 1,901 1,009 643 978 278 805
   Asia
62 64 62 109 120 23 134
   Other
– – 43 52 68 6 16
Total CLL 3,680 4,892 3,649 1,361 1,847 485 1,942
Energy Financial Services – – 2 – – – 7
GECAS – – 17 3 3 – 5
Other 17 28 26 8 8 2 40
Total $ 3,697 $ 4,920 $ 3,694 $ 1,372 $ 1,858 $ 487 $ 1,994

2011

CLL
   Americas
$ 2,136 $ 2,219 $ 2,128 $ 1,367 $ 1,415 $ 425 $ 1,468
   Europe
936 1,060 1,001 730 717 263 602
   Asia
85 83 94 156 128 84 214
   Other
54 58 13 11 11 2 5
Total CLL 3,211 3,420 3,236 2,264 2,271 774 2,289
Energy Financial Services 4 4 20 18 18 9 87
GECAS 28 28 59 – – – 11
Other 62 63 67 75 75 29 97
Total $ 3,305 $ 3,515 $ 3,382 $ 2,357 $ 2,364 $ 812 $ 2,484

We recognized $253 million and $193 million of interest income, including $92 million and $59 million on a cash basis, for the years ended December 31, 2012 and 2011, respectively, principally in our CLL Americas business. The total average investment in impaired loans for the years ended December 31, 2012 and 2011 was $5,688 million and $5,866 million, respectively.

Impaired loans classified as TDRs in our CLL business were $3,872 million and $3,642 million at December 31, 2012 and 2011, respectively, and were primarily attributable to CLL Americas ($2,577 million and $2,746 million, respectively). For the year ended December 31, 2012, we modified $2,935 million of loans classified as TDRs, primarily in CLL Americas ($1,739 million) and CLL EMEA ($992 million). Changes to these loans primarily included debt to equity exchange, extensions, interest-only payment periods and forbearance or other actions, which are in addition to, or sometimes in lieu of, fees and rate increases. Of our $2,935 million of modifications classified as TDRs during 2012, $217 million have subsequently experienced a payment default in 2012. Of our $1,856 million of modifications classified as TDRs during 2011, $101 million have subsequently experienced a payment default in 2011.

~~(174)~~

~~Credit Quality Indicators~~

Our internal risk ratings process is an important source of information in determining our allowance for losses and represents a comprehensive, statistically validated approach to evaluate risk in our financing receivables portfolios. In deriving our internal risk ratings, we stratify our Commercial portfolios into 21 categories of default risk and/or six categories of loss given default to group into three categories: A, B and C. Our process starts by developing an internal risk rating for our borrowers, which are based upon our proprietary models using data derived from borrower financial statements, agency ratings, payment history information, equity prices and other commercial borrower characteristics. We then evaluate the potential risk of loss for the specific lending transaction in the event of borrower default, which takes into account such factors as applicable collateral value, historical loss and recovery rates for similar transactions, and our collection capabilities. Our internal risk ratings process and the models we use are subject to regular monitoring and validation controls. The frequency of rating updates is set by our credit risk policy, which requires annual Risk Committee approval. The models are updated on a regular basis and statistically validated annually, or more frequently as circumstances warrant.

The table below summarizes our Commercial financing receivables by risk category. As described above, financing receivables are assigned one of 21 risk ratings based on our process and then these are grouped by similar characteristics into three categories in the table below. Category A is characterized by either high credit quality borrowers or transactions with significant collateral coverage which substantially reduces or eliminates the risk of loss in the event of borrower default. Category B is characterized by borrowers with weaker credit quality than those in Category A, or transactions with moderately strong collateral coverage which minimizes but may not fully mitigate the risk of loss in the event of default. Category C is characterized by borrowers with higher levels of default risk relative to our overall portfolio or transactions where collateral coverage may not fully mitigate a loss in the event of default.

~~(175)~~

Secured
December 31 (In millions) A B C Total

2012

CLL
   Americas
$ 68,360 $ 1,775 $ 2,382 $ 72,517
   Europe
33,754 1,188 1,256 36,198
   Asia
10,732 117 372 11,221
   Other
161 – 94 255
Total CLL 113,007 3,080 4,104 120,191

Energy Financial Services 4,725 – – 4,725

GECAS 10,681 223 11 10,915

Other 486 – – 486
Total $ 128,899 $ 3,303 $ 4,115 $ 136,317

2011

CLL
   Americas
$ 73,103 $ 2,816 $ 4,586 $ 80,505
   Europe
33,481 1,080 1,002 35,563
   Asia
10,644 116 685 11,445
   Other
345 – 91 436
Total CLL 117,573 4,012 6,364 127,949

Energy Financial Services 5,727 24 18 5,769

GECAS 10,881 970 50 11,901

Other 1,282 – – 1,282
Total $ 135,463 $ 5,006 $ 6,432 $ 146,901

Our unsecured Commercial financing receivables portfolio is primarily attributable to our Interbanca S.p.A. and GE Sanyo Credit acquisitions in Europe and Asia, respectively. At December 31, 2012 and December 31, 2011, these financing receivables included $458 million and $325 million rated A, $583 million and $748 million rated B, and $452 million and $596 million rated C, respectively.

~~(176)~~

~~REAL ESTATE~~

~~Financing Receivables and Allowance for Losses~~

~~The following table provides further information about general and specific reserves related to Real Estate financing receivables.~~

Financing receivables
December 31 (In millions) 2012 2011

Debt $ 19,746 $ 24,501
Business Properties(a) 1,200 8,248

Total Real Estate financing receivables, before allowance for losses $ 20,946 $ 32,749

Non-impaired financing receivables $ 15,253 $ 24,002
General reserves 132 267

Impaired loans 5,693 8,747
Specific reserves 188 822

~~(a)~~

~~In 2012, we completed the sale of a portion of our Business Properties portfolio.~~

~~Past Due Financing Receivables~~

~~The following table displays payment performance of Real Estate financing receivables.~~

2012 2011
Over 30 days Over 90 days Over 30 days Over 90 days
December 31 past due past due past due past due

Debt 1.7 % 1.7 % 2.4 % 2.3 %
Business Properties 10.8 10.2 3.9 3.0
Total 2.3 2.2 2.8 2.5

~~Nonaccrual Financing Receivables~~

The following table provides further information about Real Estate financing receivables that are classified as nonaccrual. Of our $4,885 million and $6,949 million of nonaccrual financing receivables at December 31, 2012 and December 31, 2011, respectively, $4,461 million and $6,061 million are currently paying in accordance with their contractual terms, respectively.

Nonaccrual financing Nonearning financing
receivables receivables
December 31 (Dollars in millions) 2012 2011 2012 2011

Debt $ 4,576 $ 6,351 $ 321 $ 541
Business Properties 309 598 123 249
Total $ 4,885 $ 6,949 $ 444 $ 790

Allowance for losses percentage 6.6 % 15.7 % 72.1 % 137.8 %

~~(177)~~

~~Impaired Loans~~

~~The following table provides information about loans classified as impaired and specific reserves related to Real Estate.~~

With no specific allowance With a specific allowance
Recorded Unpaid Average Recorded Unpaid Average
investment principal investment investment principal Associated investment
December 31 (In millions) in loans balance in loans in loans balance allowance in loans

2012

Debt $ 3,294 $ 3,515 $ 3,575 $ 2,077 $ 2,682 $ 156 $ 3,455
Business Properties 197 197 198 125 125 32 297
Total $ 3,491 $ 3,712 $ 3,773 $ 2,202 $ 2,807 $ 188 $ 3,752

2011

Debt $ 3,558 $ 3,614 $ 3,568 $ 4,560 $ 4,652 $ 717 $ 5,435
Business Properties 232 232 215 397 397 105 460
Total $ 3,790 $ 3,846 $ 3,783 $ 4,957 $ 5,049 $ 822 $ 5,895

We recognized $329 million and $399 million of interest income, including $237 million and $339 million on a cash basis, for the years ended December 31, 2012 and 2011, respectively, principally in our Real Estate-Debt portfolio. The total average investment in impaired loans for the years ended December 31, 2012 and 2011 was $7,525 million and $9,678 million, respectively.

Real Estate TDRs decreased from $7,006 million at December 31, 2011 to $5,146 million at December 31, 2012, primarily driven by resolution of TDRs through paydowns, restructurings, foreclosures and write-offs, partially offset by extensions of loans scheduled to mature during 2012, some of which were classified as TDRs upon modification. We deem loan modifications to be TDRs when we have granted a concession to a borrower experiencing financial difficulty and we do not receive adequate compensation in the form of an effective interest rate that is at current market rates of interest given the risk characteristics of the loan or other consideration that compensates us for the value of the concession. The limited liquidity and higher return requirements in the real estate market for loans with higher loan-to-value (LTV) ratios has typically resulted in the conclusion that the modified terms are not at current market rates of interest, even if the modified loans are expected to be fully recoverable. For the year ended December 31, 2012, we modified $4,351 million of loans classified as TDRs, substantially all in our Debt portfolio. Changes to these loans primarily included maturity extensions, principal payment acceleration, changes to collateral or covenant terms and cash sweeps, which are in addition to, or sometimes in lieu of, fees and rate increases. Of our $4,351 million of modifications classified as TDRs during 2012, $210 million have subsequently experienced a payment default in 2012. Of our $3,965 million of modifications classified as TDRs during 2011, $140 million have subsequently experienced a payment default in 2011.

~~Credit Quality Indicators~~

Due to the primarily non-recourse nature of our Debt portfolio, loan-to-value ratios provide the best indicators of the credit quality of the portfolio. By contrast, the credit quality of the Business Properties portfolio is primarily influenced by the strength of the borrower’s general credit quality, which is reflected in our internal risk rating process, consistent with the process we use for our Commercial portfolio.

~~(178)~~

Loan-to-value ratio
2012 2011
Less than 80% to Greater than Less than 80% to Greater than
December 31 (In millions) 80% 95% 95% 80% 95% 95%

Debt $ 13,570 $ 2,572 $ 3,604 $ 14,454 $ 4,593 $ 5,454

~~At December 31, 2012, Business Properties receivables of $956 million, $25 million and $219 million were rated A, B and C, respectively. At December 31, 2011, Business Properties receivables of $7,628 million, $110 million and $510 million were rated A, B and C, respectively.~~

Within Real Estate-Debt, these financing receivables are primarily concentrated in our North American and European Lending platforms and are secured by various property types. A substantial majority of the Real Estate-Debt financing receivables with loan-to-value ratios greater than 95% are paying in accordance with contractual terms. Substantially all of these loans and the majority of the Real Estate-Business Properties financing receivables included in Category C are impaired loans which are subject to the specific reserve evaluation process described in Note 1. The ultimate recoverability of impaired loans is driven by collection strategies that do not necessarily depend on the sale of the underlying collateral and include full or partial repayments through third-party refinancing and restructurings.

~~CONSUMER~~

At December 31, 2012, our U.S. consumer financing receivables included private-label credit card and sales financing for approximately 57 million customers across the U.S. with no metropolitan area accounting for more than 6% of the portfolio. Of the total U.S. consumer financing receivables, approximately 66% relate to credit card loans, which are often subject to profit and loss-sharing arrangements with the retailer (which are recorded in revenues), and the remaining 34% are sales finance receivables, which provide financing to customers in areas such as electronics, recreation, medical and home improvement.

~~Financing Receivables and Allowance for Losses~~

~~The following table provides further information about general and specific reserves related to Consumer financing receivables.~~

Financing receivables
December 31 (In millions) 2012 2011

Non-U.S. residential mortgages $ 33,451 $ 35,550
Non-U.S. installment and revolving credit 18,546 18,544
U.S. installment and revolving credit 50,853 46,689
Non-U.S. auto 4,260 5,691
Other 8,070 7,244
Total Consumer financing receivables, before allowance for losses $ 115,180 $ 113,718

Non-impaired financing receivables $ 111,960 $ 110,825
General reserves 2,950 2,891

Impaired loans 3,220 2,893
Specific reserves 674 680

~~Past Due Financing Receivables~~

~~The following table displays payment performance of Consumer financing receivables.~~

~~(179)~~

2012 2011
Over 30 days Over 90 days Over 30 days Over 90 days
December 31 past due past due(a) past due past due(a)

Non-U.S. residential mortgages 12.0 % 7.5 % 12.3 % 7.9 %
Non-U.S. installment and revolving credit 3.9 1.1 4.1 1.2
U.S. installment and revolving credit 4.6 2.0 5.0 2.2
Non-U.S. auto 3.1 0.5 3.1 0.6
Other 2.8 1.7 3.5 2.0
Total 6.5 3.4 6.9 3.7

~~(a)~~

Included $24 million and $45 million of loans at December 31, 2012 and December 31, 2011, respectively, which are over 90 days past due and accruing interest, mainly representing accretion on loans acquired at a discount.

~~Nonaccrual Financing Receivables~~

~~The following table provides further information about Consumer financing receivables that are classified as nonaccrual.~~

Nonaccrual financing Nonearning financing
receivables receivables
December 31 (Dollars in millions) 2012 2011 2012 2011

Non-U.S. residential mortgages $ 2,600 $ 2,995 $ 2,569 $ 2,870
Non-U.S. installment and revolving credit 224 321 224 263
U.S. installment and revolving credit 1,026 990 1,026 990
Non-U.S. auto 24 43 24 43
Other 427 487 351 419
Total $ 4,301 $ 4,836 $ 4,194 $ 4,585

Allowance for losses percentage 84.3 % 73.8 % 86.4 % 77.9 %

~~(180)~~

~~Impaired Loans~~

The vast majority of our Consumer nonaccrual financing receivables are smaller balance homogeneous loans evaluated collectively, by portfolio, for impairment and therefore are outside the scope of the disclosure requirement for impaired loans. Accordingly, impaired loans in our Consumer business represent restructured smaller balance homogeneous loans meeting the definition of a TDR, and are therefore subject to the disclosure requirement for impaired loans, and commercial loans in our Consumer–Other portfolio. The recorded investment of these impaired loans totaled $3,220 million (with an unpaid principal balance of $3,269 million) and comprised $105 million with no specific allowance, primarily all in our Consumer–Other portfolio, and $3,115 million with a specific allowance of $674 million at December 31, 2012. The impaired loans with a specific allowance included $309 million with a specific allowance of $83 million in our Consumer–Other portfolio and $2,806 million with a specific allowance of $591 million across the remaining Consumer business and had an unpaid principal balance and average investment of $3,152 million and $2,956 million, respectively, at December 31, 2012. We recognized $169 million and $141 million of interest income, including $5 million and $15 million on a cash basis, for the years ended December 31, 2012 and 2011, respectively, principally in our Consumer –Non-U.S. and U.S. installment and revolving credit portfolios. The total average investment in impaired loans for the years ended December 31, 2012 and 2011 was $3,056 million and $2,623 million, respectively.

Impaired loans classified as TDRs in our Consumer business were $3,053 million and $2,723 million at December 31, 2012 and 2011, respectively. We utilize certain loan modification programs for borrowers experiencing financial difficulties in our Consumer loan portfolio. These loan modification programs primarily include interest rate reductions and payment deferrals in excess of three months, which were not part of the terms of the original contract, and are primarily concentrated in our non-U.S. residential mortgage and U.S. credit card portfolios. For the year ended December 31, 2012, we modified $1,756 million of consumer loans for borrowers experiencing financial difficulties, which are classified as TDRs, and included $1,186 million of non-U.S. consumer loans, primarily residential mortgages, credit cards and personal loans and $570 million of U.S. consumer loans, primarily credit cards. We expect borrowers whose loans have been modified under these programs to continue to be able to meet their contractual obligations upon the conclusion of the modification. Of our $1,756 million of modifications classified as TDRs during 2012, $334 million have subsequently experienced a payment default in 2012, primarily in our installment and revolving credit portfolios. Of our $1,924 million of modifications classified as TDRs during 2011, $240 million have subsequently experienced a payment default in 2011.

~~Credit Quality Indicators~~

Our Consumer financing receivables portfolio comprises both secured and unsecured lending. Secured financing receivables comprise residential loans and lending to small and medium-sized enterprises predominantly secured by auto and equipment, inventory finance and cash flow loans. Unsecured financing receivables include private-label credit card financing. A substantial majority of these cards are not for general use and are limited to the products and services sold by the retailer. The private label portfolio is diverse with no metropolitan area accounting for more than 5% of the related portfolio.

~~Non-U.S. residential mortgages~~

~~(181)~~

Loan-to-value ratio
2012 2011
80% or Greater than Greater than 80% or Greater than Greater than
December 31 (In millions) less 80% to 90% 90% less 80% to 90% 90%

Non-U.S.
residential

mortgages
$ 18,613 $ 5,739 $ 9,099 $ 19,834 $ 6,087 $ 9,629

The majority of these financing receivables are in our U.K. and France portfolios and have re-indexed loan-to-value ratios of 83% and 56%, respectively. We have third-party mortgage insurance for about 35% of the balance of Consumer non-U.S. residential mortgage loans with loan-to-value ratios greater than 90% at December 31, 2012. Such loans were primarily originated in Poland, France and the U.K.

~~Installment and Revolving Credit~~

For our unsecured lending products, including the non-U.S. and U.S. installment and revolving credit and non-U.S. auto portfolios, we assess overall credit quality using internal and external credit scores. Our internal credit scores imply a probability of default which we consistently translate into three approximate credit bureau equivalent credit score categories, including (a) 681 or higher, which are considered the strongest credits; (b) 615 to 680, considered moderate credit risk; and (c) 614 or less, which are considered weaker credits.

Internal ratings translated to approximate credit bureau equivalent score
2012 2011
681 or 615 to 614 or 681 or 615 to 614 or
December 31 (In millions) higher 680 less higher 680 less

Non-U.S.
   installment and

   revolving credit
$ 10,493 $ 4,496 $ 3,557 $ 9,913 $ 4,838 $ 3,793
U.S. installment
   and revolving

   credit
33,204 9,753 7,896 28,918 9,398 8,373
Non-U.S. auto 3,141 666 453 3,927 1,092 672

Of those financing receivable accounts with credit bureau equivalent scores of 614 or less at December 31, 2012, 96% relate to installment and revolving credit accounts. These smaller balance accounts have an average outstanding balance less than one thousand U.S. dollars and are primarily concentrated in our retail card and sales finance receivables in the U.S. (which are often subject to profit and loss-sharing arrangements), and closed-end loans outside the U.S., which minimizes the potential for loss in the event of default. For lower credit scores, we adequately price for the incremental risk at origination and monitor credit migration through our risk ratings process. We continuously adjust our credit line underwriting management and collection strategies based on customer behavior and risk profile changes.

~~Consumer – Other~~

At December 31, 2012, Consumer – Other financing receivables of $6,873 million, $451 million and $746 million were rated A, B, and C, respectively. At December 31, 2011, Consumer – Other financing receivables of $5,580 million, $757 million and $907 million were rated A, B, and C, respectively.

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~~NOTE 24.~~ VARIABLE INTEREST ENTITIES

We use variable interest entities primarily to securitize financial assets and arrange other forms of asset-backed financing in the ordinary course of business. Except as noted below, investors in these entities only have recourse to the assets owned by the entity and not to our general credit. We do not have implicit support arrangements with any VIE. We did not provide non-contractual support for previously transferred financing receivables to any VIE in ~~2012~~2013 or ~~2011.~~2012.

In evaluating whether we have the power to direct the activities of a VIE that most significantly impact its economic performance, we consider the purpose for which the VIE was created, the importance of each of the activities in which it is engaged and our decision-making role, if any, in those activities that significantly determine the entity’s economic performance as compared to other economic interest holders. This evaluation requires consideration of all facts and circumstances relevant to decision-making that affects the entity’s future performance and the exercise of professional judgment in deciding which decision-making rights are most important.

In determining whether we have the right to receive benefits or the obligation to absorb losses that could potentially be significant to the VIE, we evaluate all of our economic interests in the entity, regardless of form (debt, equity, management and servicing fees, and other contractual arrangements). This evaluation considers all relevant factors of the entity’s design, including: the entity’s capital structure, contractual rights to earnings (losses), subordination of our interests relative to those of other investors, contingent payments, as well as other contractual arrangements that have the potential to be economically significant. The evaluation of each of these factors in reaching a conclusion about the potential significance of our economic interests is a matter that requires the exercise of professional judgment.

Consolidated Variable Interest Entities

We consolidate VIEs because we have the power to direct the activities that significantly affect the VIEs economic performance, typically because of our role as either servicer or manager for the VIE. Our consolidated VIEs fall into three main groups, which are further described below:

Trinity comprises two consolidated entities that hold investment securities, the majority of which are investment grade, and were funded by the issuance of GICs. The GICs included conditions under which certain holders could require immediate repayment of their investment should the long-term credit ratings of GECC fall below AA-/Aa3 or the short-term credit ratings fall below A-1+/P-1. Following the April 3, 2012 Moody’s downgrade of GECC’s long-term credit rating to A1, substantially all of these GICs became redeemable by their holders. In 2012, holders of $1,981 million in principal amount of GICs redeemed their holdings. The ~~redemption was funded primarily through advances from GECC. The remaining~~ outstanding GICs ~~will continue to be~~are subject to their scheduled maturities and individual terms, which may include provisions permitting redemption upon a downgrade of one or more of GECC’s ratings, among other ~~things.~~things, and are reported in investment contracts, insurance liabilities and insurance annuity benefits.

Consolidated Securitization Entities (CSEs) ~~comprise primarily our previously unconsolidated QSPEs that were consolidated on January 1, 2010 in connection with our adoption of ASU 2009-16 & 17. These entities~~ were created to facilitate securitization of financial assets and other forms of asset-backed financing ~~which~~that serve as an alternative funding source by providing access to variable funding notes and term markets. The securitization transactions executed with these entities are similar to those used by many financial institutions and substantially all are non-recourse. We provide servicing for substantially all of the assets in these entities.

The financing receivables in these entities have similar risks and characteristics to our other financing receivables and were underwritten to the same standard. Accordingly, the performance of these assets has been similar to our other financing receivables; however, the blended performance of the pools of receivables in these entities reflects the eligibility criteria that we apply to determine which receivables are selected for transfer. Contractually the cash flows from these financing receivables must first be used to pay third-party debt holders as well as other expenses of the entity. Excess cash flows are available to GE. The creditors of these entities have no claim on other assets of GE.

(183)

Other remaining assets and liabilities of consolidated VIEs relate primarily to three categories of entities: (1) joint ventures that lease ~~light industrial~~ equipment of ~~$1,438~~$1,539 million of assets and ~~$836~~$727 million of liabilities; (2) other entities that are involved in power generating and leasing activities of ~~$891~~$762 million of assets and no liabilities; and (3) insurance entities that, among other lines of business, provide property and casualty and workers’ compensation coverage for GE of ~~$1,193~~$1,209 million of assets and ~~$588~~$566 million of liabilities.

The table below summarizes the assets and liabilities of consolidated VIEs described above.

				Consolidated Securitization Entities																		Consolidated Securitization Entities
				Credit						Real			Trade									Credit						Trade
December 31 (In millions)	Trinity		(a)	cards		(b)	Equipment		(b)	estate		(c)	receivables		Other		Total		Trinity		(a)	cards		(b)	Equipment		(b)	receivables			Other		Total

2012
2013

Assets(d)
Assets(c)
Financing
receivables, net	$	–		$	24,169		$	12,456		$	50		$	2,339	$	1,902	$	40,916	$	-		$	24,766		$	12,928		$	2,509		$	2,044	$	42,247
Investment securities		3,435			–			–			–			–		1,051		4,486		2,786			-			-			-			1,044		3,830
Other assets		217			29			360			–			–		2,428		3,034		213			20			557			-			2,430		3,220
Total	$	3,652		$	24,198		$	12,816		$	50		$	2,339	$	5,381	$	48,436	$	2,999		$	24,786		$	13,485		$	2,509		$	5,518	$	49,297

Liabilities(d)
Liabilities(c)
Borrowings	$	–		$	–		$	–		$	–		$	–	$	711	$	711	$	-		$	-		$	-		$	-		$	598	$	598
Non-recourse
borrowings		–			17,208			9,811			54			2,050		–		29,123		-			15,363			10,982			2,180			49		28,574
Other liabilities		1,656			146			11			2			8		1,213		3,036		1,482			228			248			25			1,351		3,334
Total	$	1,656		$	17,354		$	9,822		$	56		$	2,058	$	1,924	$	32,870	$	1,482		$	15,591		$	11,230		$	2,205		$	1,998	$	32,506

2011
2012
																														��
Assets(d)
Assets(c)
Financing
receivables, net	$	–		$	19,229		$	10,523		$	3,521		$	1,614	$	2,973	$	37,860	$	-		$	24,169		$	12,456		$	2,339		$	1,952	$	40,916
Investment securities		4,289			–			–			–			–		1,031		5,320		3,435			-			-			-			1,051		4,486
Other assets		389			17			283			210			–		2,636		3,535		217			29			360			-			2,428		3,034
Total	$	4,678		$	19,246		$	10,806		$	3,731		$	1,614	$	6,640	$	46,715	$	3,652		$	24,198		$	12,816		$	2,339		$	5,431	$	48,436

Liabilities(d)
Liabilities(c)
Borrowings	$	–		$	–		$	2		$	25		$	–	$	821	$	848	$	-		$	-		$	-		$	-		$	711	$	711
Non-recourse
borrowings		–			14,184			8,166			3,659			1,769		980		28,758		-			17,208			9,811			2,050			54		29,123
Other liabilities		4,456			37			–			19			23		1,071		5,606		1,656			146			11			8			1,215		3,036
Total	$	4,456		$	14,221		$	8,168		$	3,703		$	1,792	$	2,872	$	35,212	$	1,656		$	17,354		$	9,822		$	2,058		$	1,980	$	32,870

(a)	Excludes intercompany advances from GECC to Trinity, which are eliminated in consolidation of ~~$2,441~~$1,837 million and ~~$1,006~~$2,441 million at December 31, ~~2012~~2013 and ~~2011,~~2012, respectively.

(b)

We provide servicing to the CSEs and are contractually permitted to commingle cash collected from customers on financing receivables sold to CSE investors with our own cash prior to payment to a CSE, provided our short-term credit rating does not fall below A-1/P-1. These CSEs also owe us amounts for purchased financial assets and scheduled interest and principal payments. At December 31, ~~2012~~2013 and ~~2011,~~2012, the amounts of commingled cash owed to the CSEs were ~~$6,225~~$6,314 million and ~~$5,655~~$6,225 million, respectively, and the amounts owed to usGECC by CSEs were ~~$6,143~~$5,540 million and ~~$5,165~~$6,143 million, respectively.

(c)	On October 1, 2012, we completed the sale of our Business Property business, which included servicing rights for its CSEs. We deconsolidated the Business Properties CSEs in the fourth quarter of 2012 as we no longer have the power to direct the activities of these entities.

~~(d)~~

Asset amounts exclude intercompany receivables for cash collected on behalf of ~~the~~these entities by GE as servicer, which are eliminated in consolidation. Such receivables provide the cash to repay the entities’ liabilities. If these intercompany receivables were included in the table above, assets would be higher. In addition, other assets, borrowings and other liabilities exclude intercompany balances that are eliminated in consolidation.

~~(184)~~

Total revenues from our consolidated VIEs were $7,540 million, $7,127 million and $6,326 million in 2013, 2012 and ~~$7,122 million in 2012,~~ 2011, ~~and 2010,~~ respectively. Related expenses consisted primarily of provisions for losses of $1,247 million, $1,171 million and $1,146 million in 2013, 2012 and ~~$1,596 million in 2012,~~ 2011, ~~and 2010,~~ respectively, and interest and other financial charges of $355 million, $541 million and $594 million in 2013, 2012 and ~~$767 million in 2012,~~ 2011, ~~and 2010,~~ respectively. These amounts do not include intercompany revenues and costs, principally fees and interest between GE and the VIEs, which are eliminated in consolidation.

(184)

Investments in Unconsolidated Variable Interest Entities

Our involvement with unconsolidated VIEs consists of the following activities: assisting in the formation and financing of the entity, providing recourse and/or liquidity support, servicing the assets and receiving variable fees for services provided. We are not required to consolidate these entities because the nature of our involvement with the activities of the VIEs does not give us power over decisions that significantly affect their economic performance.

Prior to June 30, 2012, the largest unconsolidated VIE with which we were involved was Penske Truck Leasing Co., L.P. (PTL), a joint venture and limited partnership formed in 1988 between Penske Truck Leasing Corporation (PTLC) and GE. PTLC is the sole general partner of PTL and an indirect wholly-owned subsidiary of Penske Corporation. PTL is engaged in truck leasing and support services, including full-service leasing, dedicated logistics support and contract maintenance programs, as well as rental operations serving commercial and consumer customers. Our direct and indirect interest in PTL is accounted for using the equity method. During the second quarter of 2012, PTL effected a recapitalization and subsequently acquired third-party financing which, through the fourth quarter of 2012, was used to repay $5,392 million of its outstanding debt owed to GECC. At December 31, 2012, our direct and indirect investment in PTL of $2,080 million primarily comprised partnership interests of $825 million and loans and advances of $1,218 million. During the first quarter of 2013, PTL repaid all of its outstanding debt owed to GECC.

Our largest exposure to any single unconsolidated VIE at December 31, ~~2012~~2013 is an investment in asset-backed securities issued by the Senior Secured Loan Program (SSLP), a ~~senior secured loan~~ fund ~~which~~that invests in ~~high quality~~high-quality senior secured debt of various middle-market companies ($~~5,030~~6,996 million). Other significant unconsolidated VIEs include investments in real estate entities ($~~2,639~~2,369 million), which generally consist of passive limited partnership investments in tax-advantaged, multi-family real estate and investments in various European real estate entities; and exposures to joint ventures that purchase factored receivables ($~~2,218~~2,624 million). ~~The vast majority of our other unconsolidated entities consist of passive investments in various asset-backed financing entities.~~

The classification of our variable interests in these entities in our financial statements is based on the nature of the entity and the type of investment we hold. Variable interests in partnerships and corporate entities are classified as either equity method or cost method investments. In the ordinary course of business, we also make investments in entities in which we are not the primary beneficiary but may hold a variable interest such as limited partner interests or mezzanine debt investments. These investments are classified in two captions in our financial statements: “All other assets” for investments accounted for under the equity method, and “Financing receivables – net” for debt financing provided to these entities. Our investments in unconsolidated VIEs at December 31, ~~2012~~2013 and December 31, ~~2011~~2012 follow.

	2012						2011
December 31 (In millions)		PTL		All other		Total		PTL	All other		Total		2013		2012


Other assets and investment
securities	$	2,080	$	7,947	$	10,027	$	7,038	$	6,954	$	13,992
Other assets and investment securities													$	9,129	$	10,027
Financing receivables – net		–		2,654		2,654		–		2,507		2,507		3,346		2,654
Total investments		2,080		10,601		12,681		7,038		9,461		16,499		12,475		12,681
Contractual obligations to fund
investments or guarantees		140		2,468		2,608		600		2,253		2,853		2,741		2,608
Revolving lines of credit		–		41		41		1,356		92		1,448		31		41
Total	$	2,220	$	13,110	$	15,330	$	8,994	$	11,806	$	20,800	$	15,247	$	15,330

As previously reported, during 2012, Penske Truck Leasing Co., L.P. (PTL) effected a recapitalization and subsequently acquired third-party financing in order to repay outstanding debt owed to GECC. In the first quarter of 2013, PTL had repaid all outstanding debt owed and terminated its borrowing arrangement with GECC. During the second quarter of 2013, PTL ceased to be a VIE as a result of a principal in PTL retiring from the GE Board. Therefore, our investment in PTL ($899 million at December 31, 2013) is not reported in the December 31, 2013 balance in the table above. As co-issuer and co-guarantor of the $700 million of debt raised by the funding entity related to PTL, GECC reports this amount, which is also our loss exposure and excluded from the table above, as debt of GECC in its financial statements. GECC has been indemnified by the other limited partners of PTL for their proportionate share of the debt obligation.

~~(185)~~

In addition to the entities included in the table above, we also hold passive investments in RMBS, CMBS and ABS issued by VIEs. Such investments were, by design, investment grade at issuance and held by a diverse group of investors. Further information about such investments is provided in Note 3.

(185)

NOTE ~~25.~~24. COMMITMENTS AND GUARANTEES

Commitments

In our Aviation segment, we had committed to provide financing assistance on ~~$2,116~~$2,669 million of future customer acquisitions of aircraft equipped with our engines, including commitments made to airlines in ~~2012~~2013 for future sales under our GE90 and GEnx engine campaigns. The GECAS business of GE Capital had placed multiple-year orders for various Boeing, Airbus and other aircraft with list prices approximating ~~$25,735~~$29,405 million and secondary orders with airlines for used aircraft of approximately ~~$1,098~~$816 million at December 31, ~~2012.~~2013.

Product Warranties

We provide for estimated product warranty expenses when we sell the related products. Because warranty estimates are forecasts that are based on the best available information – mostly historical claims experience – claims costs may differ from amounts provided. An analysis of changes in the liability for product warranties follows.

(In millions)		2012		2011		2010		2013		2012		2011

Balance at January 1	$	1,507	$	1,405	$	1,641	$	1,383	$	1,507	$	1,405
Current-year provisions		611		866		491		745		611		866
Expenditures		(723)		(881)		(710)		(814)		(723)		(881)
Other changes		(12)		117		(17)		10		(12)		117
Balance at December 31	$	1,383	$	1,507	$	1,405	$	1,324	$	1,383	$	1,507

~~(188)~~(187)

NOTE ~~27.~~26. INTERCOMPANY TRANSACTIONS

Transactions between related companies are made on an arms-length basis, are eliminated and consist primarily of GECC dividends to GE; GE customer receivables sold to GECC; GECC services for trade receivables management and material procurement; buildings and equipment (including automobiles) leased between GE and GECC; information technology (IT) and other services sold to GECC by GE; aircraft engines manufactured by GE that are installed on aircraft purchased by GECC from third-party producers for lease to others; and various investments, loans and allocations of GE corporate overhead costs.

These intercompany transactions are reported in the GE and GECC columns of our financial statements, but are eliminated in deriving our consolidated financial statements. Effects of these eliminations on our consolidated cash flows from operating, investing and financing activities are $(5,088) million, $492 million and $4,690 million for 2013, $(8,542) million, $2,328 million and $6,703 million for 2012 and $(558) million, $(373) million and $903 million for 2011, ~~and $(124) million, $26 million and $293 million for 2010,~~ respectively. ~~Dividends from GECC to GE~~Details of $6,426 million have been eliminated from consolidated cash from operating and financing activities for 2012. There were no such dividends for 2011 or 2010. Net decrease (increase) in GE customer receivables sold to GECC of $(1,809) million, $2,005 million, and $(196) million have been eliminated from consolidated cash from operating, investing and financing activities for 2012, respectively. Net decrease (increase) in GE customer receivables sold to GECC of $(601) million and $147 million have been eliminated from consolidated cash from operating and investing activities for 2011 and 2010, respectively. Intercompany borrowings (includes GE investment in GECC short-term borrowings) of $473 million, $903 million and $293 million have been eliminated from financing activities for 2012, 2011 and 2010, respectively. Other reclassifications andthese eliminations of $(307) million, $43 million and $(271) million have been eliminated from consolidated cash from operating activities and $323 million, $(974) million and $173 million have been eliminated from consolidated cash from investing activities for 2012, 2011 and 2010, respectively.are shown below.

For the years ended December 31 (In millions)	2013		2012		2011

Cash from (used for) operating activities-continuing operations
Combined	$	34,125	$	39,557	$	32,669
GE customer receivables sold to GECC		360		(1,809)		(577)
GECC dividends to GE		(5,985)		(6,426)		-
Other reclassifications and eliminations		537		(307)		19
	$	29,037	$	31,015	$	32,111
Cash from (used for) investing activities-continuing operations
Combined	$	28,182	$	9,262	$	21,540
GE customer receivables sold to GECC		262		2,005		421
Other reclassifications and eliminations		230		323		(794)
	$	28,674	$	11,590	$	21,167
Cash from (used for) financing activities-continuing operations
Combined	$	(50,319)	$	(57,758)	$	(47,818)
GE customer receivables sold to GECC		(622)		(196)		156
GECC dividends to GE		5,985		6,426		-
Other reclassifications and eliminations		(673)		473		747
	$	(45,629)	$	(51,055)	$	(46,915)

NOTE ~~28.~~27. OPERATING SEGMENTS

Basis for presentation

Our operating businesses are organized based on the nature of markets and customers. Segment accounting policies are the same as described in Note 1. Segment results for our financial services businesses reflect the discrete tax effect of transactions.

Results of our formerly consolidated subsidiary, NBCU, and our ~~current~~ equity method investment in NBCU LLC, which we sold in the first quarter of 2013 are reported in the Corporate items and eliminations line on the Summary of Operating Segments.

A description of our operating segments as of December 31, ~~2012,~~2013, can be found below, and details of segment profit by operating segment can be found in the Summary of Operating Segments table in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

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Power & Water

Power plant products and services, including design, installation, operation and maintenance services are sold into global markets. Gas, steam and aeroderivative turbines, nuclear reactors, generators, combined cycle systems, controls and related services, including total asset optimization solutions, equipment upgrades and long-term maintenance service agreements are sold to power generation and other industrial customers. Renewable energy solutions include wind ~~turbines and solar technology.~~turbines. Water treatment services and equipment include specialty chemical treatment programs, water purification equipment, mobile treatment systems and desalination processes.

Oil & Gas

Oil & Gas supplies mission critical equipment for the global oil and gas industry, used in applications spanning the entire value chain from drilling and completion through production, liquefied natural gas (LNG) and pipeline compression, pipeline inspection, and including downstream processing in refineries and petrochemical plants. The business designs and manufactures surface and subsea drilling and production systems, equipment for floating production platforms, compressors, turbines, turboexpanders, high pressure reactors, industrial power generation and a broad portfolio of auxiliary equipment.

Energy Management

Energy Management is GE’s electrification business. Global teams design leading technology solutions for the delivery, management, conversion and optimization of electrical power for customers across multiple energy-intensive industries. GE has invested in our Energy Management capabilities, with strategic acquisitions and joint ventures that enable GE to increase its offerings to the utility, industrial, renewables, oil and gas, marine, metals and mining industries. Plant automation hardware, software and embedded computing systems including controllers, embedded systems, advanced software, motion control, operator interfaces and industrial computers are also provided by Energy Management.

Aviation

Aviation products and services include jet engines, aerospace systems and equipment, replacement parts and repair and maintenance services for all categories of commercial aircraft; for a wide variety of military aircraft, including fighters, bombers, tankers and helicopters; for marine applications; and for executive and regional aircraft. Products and services are sold worldwide to airframe manufacturers, airlines and government agencies.

Healthcare

Healthcare products include diagnostic imaging systems such as Magnetic Resonance (MR), Computed Tomography (CT) and Positron Emission Tomography (PET) scanners, X-ray, nuclear imaging, digital mammography, and Molecular Imaging technologies. Healthcare-manufactured technologies include patient and resident monitoring, diagnostic cardiology, ultrasound, bone densitometry, anesthesiology and oxygen therapy, and neonatal and critical care devices. Related services include equipment monitoring and repair, information technologies and customer productivity services. Products also include diagnostic imaging agents used in medical scanning procedures, drug discovery, biopharmaceutical manufacturing and purification, and tools for protein and cellular analysis for pharmaceutical and academic research, including a pipeline of precision molecular diagnostics in development for neurology, cardiology and oncology applications. Products and services are sold worldwide to hospitals, medical facilities, pharmaceutical and biotechnology companies, and to the life science research market.

Transportation

Transportation is a global technology leader and supplier to the railroad, mining, marine and drilling industries. GE provides freight and passenger locomotives, diesel engines for rail, marine and stationary power applications, railway signaling and communications systems, underground mining equipment, motorized drive systems for mining trucks, ~~energy storage systems,~~ information technology solutions, ~~and~~ high-quality replacement parts and value added services.

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~~Home~~

Appliances & ~~Business Solutions~~Lighting

Products include major appliances and related services for products such as refrigerators, freezers, electric and gas ranges, cooktops, dishwashers, clothes washers and dryers, microwave ovens, room air conditioners, residential water systems for filtration, softening and heating, and hybrid water heaters. These products are distributed both to retail outlets and direct to consumers, mainly for the replacement market, and to building contractors and distributors for new installations. Lighting products include a wide variety of lamps and lighting fixtures, including light-emitting diodes. Products and services are sold in North America and in global markets under various GE and private-label brands.

GE Capital

CLL has particular mid-market expertise, and primarily offers ~~collateralized~~secured commercial loans, ~~leases~~equipment financing and other financial services to ~~customers, including manufacturers, distributors and end-users for~~companies across a ~~variety~~wide range of ~~equipment and major capital assets. These assets include industrial-related facilities and equipment; vehicles; corporate aircraft; and equipment used in many~~ industries including ~~the~~ construction, retail, manufacturing, transportation, media, communications, ~~entertainment~~technology and ~~healthcare industries.~~healthcare. Equipment financing activities include industrial, medical, fleet vehicles, corporate aircraft, construction, office imaging and many other equipment types.

Consumer offers a full range of financial products including private-label credit cards; personal loans; bank cards; auto loans and leases; mortgages; debt consolidation; home equity loans; deposit and other savings products; and small and medium enterprise lending on a global basis.

Real Estate offers a comprehensive range of capital and investment solutions and finances, with both equity and loan structures, the acquisition, refinancing and renovation of office buildings, apartment buildings, retail facilities, hotels and industrial properties.

Energy Financial Services offers financial products to the global energy industry including structured equity, debt, leasing, partnership financing, product finance, and broad-based commercial finance.

GECAS, ~~provides financial products to airlines,~~our commercial aircraft ~~operators, owners, lenders~~financing and ~~investors,~~leasing business, offers a wide range of aircraft types and financing options, including operating leases and secured ~~loans on commercial passenger aircraft, freighters~~debt financing, and ~~regional jets;~~also provides productivity solutions including spare engine leasing, airport and airline consulting services, and spare parts financing ~~services; aircraft parts solutions;~~ and ~~airport equity and debt financing.~~management.


Revenues
	Total revenues(a)						Intersegment revenues(b)						External revenues						Total revenues(a)						Intersegment revenues(b)						External revenues
(In millions)		2012		2011		2010		2012		2011		2010		2012		2011		2010		2013		2012		2011		2013		2012		2011		2013		2012		2011

Power & Water	$	28,299	$	25,675	$	24,779	$	1,119	$	794	$	966	$	27,180	$	24,881	$	23,813	$	24,724	$	28,299	$	25,675	$	947	$	1,119	$	794	$	23,777	$	27,180	$	24,881
Oil & Gas		15,241		13,608		9,433		314		302		206		14,927		13,306		9,227		16,975		15,241		13,608		360		314		302		16,615		14,927		13,306
Energy Management		7,412		6,422		5,161		487		504		380		6,925		5,918		4,781		7,569		7,412		6,422		848		487		504		6,721		6,925		5,918
Aviation		19,994		18,859		17,619		672		417		155		19,322		18,442		17,464		21,911		19,994		18,859		500		672		417		21,411		19,322		18,442
Healthcare		18,290		18,083		16,897		37		65		30		18,253		18,018		16,867		18,200		18,290		18,083		14		37		65		18,186		18,253		18,018
Transportation		5,608		4,885		3,370		11		33		77		5,597		4,852		3,293		5,885		5,608		4,885		12		11		33		5,873		5,597		4,852
Home & Business
Solutions		7,967		7,693		7,957		23		22		18		7,944		7,671		7,939
Appliances & Lighting																				8,338		7,967		7,693		25		23		22		8,313		7,944		7,671
Total industrial		102,811		95,225		85,216		2,663		2,137		1,832		100,148		93,088		83,384		103,602		102,811		95,225		2,706		2,663		2,137		100,896		100,148		93,088
GE Capital		46,039		49,068		49,856		1,039		978		1,070		45,000		48,090		48,786		44,067		45,364		48,324		1,150		1,037		977		42,917		44,327		47,347
Corporate items
and eliminations(c)		(1,491)		2,995		14,495		(3,702)		(3,115)		(2,902)		2,211		6,110		17,397		(1,624)		(1,491)		2,993		(3,856)		(3,700)		(3,114)		2,232		2,209		6,107
Total	$	147,359	$	147,288	$	149,567	$	–	$	–	$	–	$	147,359	$	147,288	$	149,567	$	146,045	$	146,684	$	146,542	$	-	$	-	$	-	$	146,045	$	146,684	$	146,542

(a)	Revenues of GE businesses include income from sales of goods and services to customers and other income.

(b)	Sales from one component to another generally are priced at equivalent commercial selling prices.

(c)	Includes the results of NBCU (our formerly consolidated subsidiary) and our ~~current~~former equity method investment in NBCUniversal LLC.

~~(191)~~

Revenues from customers located in the United States were ~~$70,437~~$68,617 million, ~~$69,807~~$70,466 million and ~~$75,103~~$69,910 million in 2013, 2012 ~~2011~~ and ~~2010,~~2011, respectively. Revenues from customers located outside the United States were ~~$76,922~~$77,428 million, ~~$77,481~~$76,218 million and ~~$74,464~~$76,632 million in 2013, 2012 ~~2011~~ and ~~2010,~~2011, respectively.

Property, plant and
Assets(a)(b) equipment additions(c) Depreciation and amortization
At December 31 For the years ended December 31 For the years ended December 31
(In millions) 2012 2011 2010 2012 2011 2010 2012 2011 2010

Power & Water $ 27,174 $ 27,074 $ 26,544 $ 661 $ 770 $ 629 $ 647 $ 605 $ 537
Oil & Gas 20,099 18,855 9,340 467 904 246 426 434 229
Energy Management 9,253 9,835 3,733 155 414 85 287 239 179
Aviation 25,144 23,567 21,175 781 699 471 644 569 565
Healthcare 28,458 27,981 27,784 322 378 249 879 869 994
Transportation 4,389 2,633 2,515 724 193 69 90 88 85
Home & Business
Solutions
4,133 3,675 3,437 485 268 223 265 260 330
GE Capital 539,223 584,536 605,255 11,886 9,882 7,674 7,505 7,683 8,405
Corporate items
and eliminations
27,455 20,033 48,708 (99) 59 175 218 186 219
Total $ 685,328 $ 718,189 $ 748,491 $ 15,382 $ 13,567 $ 9,821 $ 10,961 $ 10,933 $ 11,543

(190)


							Property, plant and
	Assets(a)(b)						equipment additions(c)						Depreciation and amortization
	At December 31						For the years ended December 31						For the years ended December 31
(In millions)		2013		2012		2011		2013		2012		2011		2013		2012		2011

Power & Water	$	29,526	$	27,174	$	27,074	$	714	$	661	$	770	$	668	$	647	$	605
Oil & Gas		26,181		20,099		18,855		1,185		467		904		479		426		434
Energy Management		9,962		9,253		9,835		137		155		414		323		287		239
Aviation		32,272		25,144		23,567		1,178		781		699		677		644		569
Healthcare		��27,956		28,458		27,981		316		322		378		861		879		869
Transportation		4,472		4,389		2,633		282		724		193		167		90		88
Appliances & Lighting		4,237		4,133		3,675		405		485		268		300		265		260
GE Capital		516,829		539,351		584,643		9,978		11,879		9,871		7,738		7,348		7,480
Corporate items
and eliminations(d)		5,125		26,998		19,740		194		(99)		56		260		218		186
Total	$	656,560	$	684,999	$	718,003	$	14,389	$	15,375	$	13,553	$	11,473	$	10,804	$	10,730

(a)	Assets of discontinued operations, NBCU (our formerly consolidated subsidiary) and our ~~current~~former equity method investment in NBCUniversal LLC are included in Corporate items and eliminations for all periods presented.

(b)

Total assets of the Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, ~~Home~~Appliances & ~~Business Solutions~~Lighting and GE Capital operating segments at December 31, ~~2012,~~2013, include investment in and advances to associated companies of ~~$518~~$507 million, ~~$82~~$108 million, ~~$219~~$788 million, ~~$1,210~~$1,463 million, ~~$652~~$576 million, $5$10 million, ~~$449~~$388 million and ~~$19,119~~$17,348 million, respectively. Investments in and advances to associated companies contributed approximately ~~$20~~$(26) million, ~~$15~~$18 million, ~~$12~~$3 million, ~~$67~~$4 million, $(48) million, $2$0 million, ~~$52~~$40 million and ~~$1,539~~$1,809 million to segment pre-tax income of Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, ~~Home~~Appliances & ~~Business Solutions~~Lighting and GE Capital operating segments, respectively, for the year ended December 31, ~~2012.~~2013. Aggregate summarized financial information for significant associated companies assuming a 100% ownership interest included: total assets of ~~$173,000~~$98,658 million, primarily financing receivables of ~~$67,017~~$46,655 million; total liabilities of ~~$107,520~~$66,535 million, primarily debt of ~~$54,638~~$40,030 million; revenues ~~totaling $50,566~~totaled $22,692 million; and net earnings ~~totaling $6,009~~totaled $2,431 million.

(c)	Additions to property, plant and equipment include amounts relating to principal businesses purchased.

(d)	Includes deferred income taxes that are presented as assets for purposes of our consolidating balance sheet presentation.

	Interest and other financial charges						Provision (benefit) for income taxes						Interest and other financial charges						Provision (benefit) for income taxes
(In millions)		2012		2011		2010		2012		2011		2010		2013		2012		2011		2013		2012		2011

GE Capital	$	11,697	$	13,866	$	14,510	$	491	$	899	$	(985)	$	9,267	$	11,596	$	13,760	$	(992)	$	521	$	906
Corporate items and eliminations(a)		811		662		1,027		2,013		4,839		2,024		849		811		662		1,668		2,013		4,839
Total	$	12,508	$	14,528	$	15,537	$	2,504	$	5,738	$	1,039	$	10,116	$	12,407	$	14,422	$	676	$	2,534	$	5,745

(a)

Included amounts for Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, ~~Home~~Appliances & ~~Business Solutions and NBCU (prior to its deconsolidation in 2011),~~Lighting, for which our measure of segment profit excludes interest and other financial charges and income taxes.

Property, plant and equipment – net associated with operations based in the United States were ~~$28,393~~$28,657 million, ~~$27,225~~$27,192 million and ~~$25,806~~$25,974 million at year-end 2013, 2012 ~~2011~~ and ~~2010,~~2011, respectively. Property, plant and equipment – net associated with operations based outside the United States were ~~$41,350~~$40,170 million, ~~$38,514~~$41,441 million and ~~$40,406~~$38,573 million at year-end 2013, 2012 ~~2011~~ and ~~2010,~~2011, respectively.

~~(192)~~(191)

NOTE ~~29.~~28. QUARTERLY INFORMATION (UNAUDITED)

	First quarter				Second quarter				Third quarter				Fourth quarter				First quarter				Second quarter				Third quarter				Fourth quarter
(In millions; per-share amounts in dollars)	2012		2011		2012		2011		2012		2011		2012		2011		2013		2012		2013		2012		2013		2012		2013		2012

Consolidated operations
Earnings from continuing operations	$	3,289	$	3,492	$	3,691	$	3,644	$	3,471	$	3,330	$	4,451	$	4,053	$	3,631	$	3,257	$	3,423	$	3,681	$	3,272	$	3,460	$	5,149	$	4,449
Earnings (loss) from discontinued
operations		(217)		35		(553)		194		37		(65)		(305)		(240)		(120)		(185)		(124)		(543)		(91)		48		(1,785)		(303)
Net earnings		3,072		3,527		3,138		3,838		3,508		3,265		4,146		3,813		3,511		3,072		3,299		3,138		3,181		3,508		3,364		4,146
Less net earnings attributable to
noncontrolling interests		(38)		(94)		(33)		(74)		(17)		(41)		(135)		(83)		(16)		38		166		33		(10)		17		158		135
Net earnings attributable to
the Company		3,034		3,433		3,105		3,764		3,491		3,224		4,011		3,730	$	3,527	$	3,034	$	3,133	$	3,105	$	3,191	$	3,491	$	3,206	$	4,011
Preferred stock dividends declared		–		(75)		–		(75)		–		(881)		–		–
Net earnings attributable to GE
common shareowners	$	3,034	$	3,358	$	3,105	$	3,689	$	3,491	$	2,343	$	4,011	$	3,730
Per-share amounts – earnings from
continuing operations
Diluted earnings per share	$	0.31	$	0.31	$	0.34	$	0.33	$	0.33	$	0.23	$	0.41	$	0.37	$	0.35	$	0.30	$	0.31	$	0.34	$	0.32	$	0.33	$	0.49	$	0.41
Basic earnings per share		0.31		0.31		0.35		0.33		0.33		0.23		0.41		0.38		0.35		0.30		0.32		0.34		0.32		0.33		0.49		0.41
Per-share amounts – earnings (loss)
from discontinued operations
Diluted earnings per share		(0.02)		-		(0.05)		0.02		-		(0.01)		(0.03)		(0.02)		(0.01)		(0.02)		(0.01)		(0.05)		(0.01)		-		(0.18)		(0.03)
Basic earnings per share		(0.02)		-		(0.05)		0.02		-		(0.01)		(0.03)		(0.02)		(0.01)		(0.02)		(0.01)		(0.05)		(0.01)		-		(0.18)		(0.03)
Per-share amounts – net earnings
Diluted earnings per share		0.29		0.31		0.29		0.35		0.33		0.22		0.38		0.35		0.34		0.29		0.30		0.29		0.31		0.33		0.32		0.38
Basic earnings per share		0.29		0.32		0.29		0.35		0.33		0.22		0.38		0.35		0.34		0.29		0.30		0.29		0.31		0.33		0.32		0.38

Selected data
GE
Sales of goods and services	$	23,687	$	22,102	$	25,138	$	22,961	$	24,749	$	23,230	$	27,301	$	26,744	$	22,303	$	23,687	$	24,623	$	25,138	$	25,262	$	24,749	$	28,826	$	27,301
Gross profit from sales		5,653		5,273		5,800		5,488		6,025		6,376		8,240		9,095		4,867		5,653		6,007		5,800		5,691		6,025		6,819		8,341
GECC
Total revenues		11,442		13,036		11,458		12,440		11,369		12,015		11,770		11,577		11,468		11,267		10,916		11,285		10,606		11,207		11,077		11,605
Earnings from continuing operations
attributable to the Company		1,575		1,825		1,569		1,810		1,568		1,455		1,503		1,420		1,938		1,760		1,924		2,112		1,903		1,668		2,493		1,805

For GE, gross profit from sales is sales of goods and services less costs of goods and services sold.

Earnings-per-share amounts are computed independently each quarter for earnings from continuing operations, earnings (loss) from discontinued operations and net earnings. As a result, the sum of each quarter’s per-share amount may not equal the total per-share amount for the respective year; and the sum of per-share amounts from continuing operations and discontinued operations may not equal the total per-share amounts for net earnings for the respective quarters.

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.

Not applicable.

Item 9A. Controls and Procedures.

Under the direction of our Chief Executive Officer and Chief Financial Officer, we evaluated our disclosure controls and procedures and internal control over financial reporting and concluded that (i) our disclosure controls and procedures were effective as of December 31, ~~2012,~~2013, and (ii) no change in internal control over financial reporting occurred during the quarter ended December 31, ~~2012,~~2013, that has materially affected, or is reasonably likely to materially affect, such internal control over financial reporting.

Management’s annual report on internal control over financial reporting and the report of our independent registered public accounting firm appears in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

~~(193)~~(192)

Item 9B. Other Information.

Not applicable.

Part III

Item 10. Directors, Executive Officers and Corporate Governance.

Executive Officers of the Registrant (As of February 1, ~~2013)~~2014)

			Date assumed
			Executive
Name	Position	Age	Officer Position

Jeffrey R. Immelt	Chairman of the Board and Chief Executive Officer	5657	January 1997
Jeffrey S. Bornstein	Senior Vice President and Chief Financial Officer	48	July 2013
Kathryn A. Cassidy	Senior Vice President and GE Treasurer	5859	March 2003
~~Pamela Daley~~Elizabeth J. Comstock	Senior Vice President, ~~Corporate Business Development~~Chief Marketing Officer	6053	~~July 2004~~April 2013
Brackett B. Denniston III	Senior Vice President and General Counsel	6566	February 2004
~~John F. Lynch~~Jan R. Hauser	Vice President, Controller & Chief Accounting Officer	54	April 2013
Daniel C. Heintzelman	Vice Chairman, Enterprise Risk and Operations	56	October 2013
Susan Peters	Senior Vice President, Human Resources	60	~~January 2007~~
~~Jamie S. Miller~~	~~Vice President, Controller and Chief Accounting Officer~~	44	~~April 2008~~
~~Michael A. Neal~~	~~Vice Chairman of General Electric Company;~~
	~~Chairman & CEO, GE Capital~~	59	~~September 2002~~August 2013
John G. Rice	Vice Chairman of General Electric Company;
	President & CEO, Global Growth & Operations	5657	September 1997
Keith S. Sherin	Vice Chairman ~~and Chief Financial Officer~~of General Electric Company; CEO, GE Capital	5455	January 1999

All Executive Officers are elected by the Board of Directors for an initial term ~~which~~that continues until the Board meeting immediately preceding the next annual statutory meeting of shareowners, and thereafter are elected for one-year terms or until their successors have been elected. All Executive Officers have been executives of General Electric Company for the last five years except for Ms. ~~Miller.~~Hauser. Prior to joining GE in ~~April 2008,~~March 2013, Ms. ~~Miller~~Hauser served as ~~the Senior Vice President, Chief~~a partner, Accounting ~~Officer and Controller of Wellpoint, Inc.~~Services, National Professional Services Group at PricewaterhouseCoopers LLP.

The remaining information called for by this item is incorporated by reference to “Election of Directors,” ~~“Corporate Governance”~~“Section 16(a) Beneficial Ownership Reporting Compliance,” “Other Governance Policies and Practices” and “Board ~~of Directors and~~ Committees” in our definitive proxy statement for our ~~2013~~2014 Annual Meeting of Shareowners to be held April ~~24, 2013,~~23, 2014, which will be filed within 120 days of the end of our fiscal year ended December 31, ~~2012~~2013 (the ~~2013~~2014 Proxy Statement).

Item 11. Executive Compensation.

Incorporated by reference to “Compensation Discussion and Analysis,” “Compensation Committee Report,” ~~“2012 Summary~~“Summary Compensation, ~~Table,~~” ~~“2012 Grants~~“All Other Compensation,” “Other Benefits,” “Grants of Plan-Based Awards,” ~~“2012 Outstanding~~“Outstanding Equity Awards, ~~at Fiscal Year-End,~~” ~~“2012 Option~~“Option Exercises and Stock Vested,” ~~“2012 Pension~~“Pension Benefits,” ~~“2012 Nonqualified~~“Nonqualified Deferred Compensation,” ~~“2012 Potential~~“Potential Payments Upon Termination at Fiscal ~~Year-End ”~~Year-End” and ~~“2012 Non-management Directors’~~“Director Compensation” in the ~~2013~~2014 Proxy Statement.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

Incorporated by reference to “Stock Ownership Information” in the ~~2013~~2014 Proxy Statement. The remaining information called for by this item relating to “Securities Authorized for Issuance under Equity Compensation Plans” is provided in Note 16 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report.

~~(194)~~(193)

Item 13. Certain Relationships and Related Transactions, and Director Independence.

Incorporated by reference to “Related Person Transactions” and ~~“Corporate Governance”~~“Director Independence” in the ~~2013~~2014 Proxy Statement.

Item 14. Principal Accounting Fees and Services.

Incorporated by reference to “Independent ~~Auditor”~~Auditor Information” in the ~~2013~~2014 Proxy Statement.

Part IV

Item 15. Exhibits, Financial Statement Schedules.

(a)1. Financial Statements

Included in Part II of this report:

Statement of Earnings for the years ended December 31, 2013, 2012 ~~2011~~ and ~~2010~~2011

Consolidated Statement of Comprehensive Income for the years ended December 31, 2013, 2012 ~~2011~~ and ~~2010~~2011

Consolidated Statement of Changes in Shareowners’ Equity for the years ended December 31, 2013, 2012 ~~2011~~ and ~~2010~~2011

Statement of Financial Position at December 31, ~~2012~~2013 and ~~2011~~2012

Statement of Cash Flows for the years ended December 31, 2013, 2012 ~~2011~~ and ~~2010~~2011

Management’s Annual Report on Internal Control Over Financial Reporting

Report of Independent Registered Public Accounting Firm

Other financial information:

Summary of Operating Segments

Notes to consolidated financial statements

Operating segment information

(a)2. Financial Statement Schedules

The schedules listed in Reg. 210.5-04 have been omitted because they are not applicable or the required information is shown in the consolidated financial statements or notes thereto.

(a)3. Exhibit Index

	2(a)	Master Agreement dated as of December 3, 2009 by and among General Electric Company, NBC Universal, Inc., Comcast Corporation and Navy, LLC. (Incorporated by reference to Exhibit 2(a) to General Electric’s Annual Report on Form 10-K (Commission file number 001-00035) for the fiscal year ended December 31, 2009).

			~~2(b)~~	Amended and Restated Limited Liability Company Agreement of Navy, LLC. (Incorporated by reference to Exhibit 10.50 to Comcast Corporation’s Annual Report on Form 10-K (Commission file number 001-32871) for the fiscal year ended December 31, 2010).

	~~3(a)~~3(i)	The Certificate of Incorporation, as amended, of General Electric ~~Company (Incorporated by reference to Exhibit 3(a) of General Electric’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 (Commission file number 001-00035)).~~Company.*

	3(ii)	The By-Laws, as amended, of General Electric Company (Incorporated by reference to Exhibit 3(ii) of General Electric’s Current Report on Form 8-K dated February 15, 2013 (Commission file number 001-00035)).

	4(a)	Amended and Restated General Electric Capital Corporation (GECC) Standard Global Multiple Series Indenture Provisions dated as of February 27, 1997 (Incorporated by reference to Exhibit 4(a) to GECC’s Registration Statement on Form S-3, File No. 333-59707 (Commission file number 001-06461)).
~~(195)~~
	4(b)	Third Amended and Restated Indenture dated as of February 27, 1997, between GECC and The Bank of New York Mellon, as successor trustee (Incorporated by reference to Exhibit 4(c) to GECC’s Registration Statement on Form S-3, File No. 333-59707 (Commission file number 001-06461)).

(194)

	4(c)	First Supplemental Indenture dated as of May 3, 1999, supplemental to Third Amended and Restated Indenture dated as of February 27, 1997 (Incorporated by reference to Exhibit 4(dd) to GECC’s Post-Effective Amendment No. 1 to Registration Statement on Form S-3, File No. 333-76479 (Commission file number 001-06461)).

	4(d)	Second Supplemental Indenture dated as of July 2, 2001, supplemental to Third Amended and Restated Indenture dated as of February 27, 1997 (Incorporated by reference to Exhibit 4(f) to GECC’s Post-Effective Amendment No.1 to Registration Statement on Form S-3, File No. 333-40880 (Commission file number 001-06461)).

	4(e)	Third Supplemental Indenture dated as of November 22, 2002, supplemental to Third Amended and Restated Indenture dated as of February 27, 1997 (Incorporated by reference to Exhibit 4(cc) to GECC’s Post-Effective Amendment No. 1 to the Registration Statement on Form S-3, File No. 333-100527 (Commission file number 001-06461)).

	4(f)	Fourth Supplemental Indenture dated as of August 24, 2007, supplemental to Third Amended and Restated Indenture dated as of February 27, 1997 (Incorporated by reference to Exhibit 4(g) to GECC’s Registration Statement on Form S-3, File number 333-156929 (Commission file number 001-06461)).

				~~4(g)~~	Senior Note Indenture dated as of January 1, 2003, between General Electric and The Bank of New York Mellon, as trustee for the senior debt securities (Incorporated by reference to Exhibit 4(a) to General Electric’s Current Report on Form 8-K filed on January 29, 2003 (Commission file number 001-00035)).

	~~4(h)~~4(g)	Indenture dated December 1, 2005, between General Electric Company and The Bank of New York Mellon, as successor trustee (Incorporated by reference to Exhibit 4(a) of General Electric’s Current Report on Form 8-K filed on December 9, 2005 (Commission file number 001-00035)).
	~~4(i)~~4(h)	Senior Note Indenture dated as of October 9, 2012, between General Electric Company and The Bank of New York Mellon, as trustee (Incorporated by reference to Exhibit 4.1 to General Electric’s Current Report on Form 8-K filed on October 9, 2012 (Commission file number 001-00035)).

				~~4(j)~~	Form of GECC Global Medium-Term Note, Series A, Fixed Rate Registered Note (Incorporated by reference to Exhibit 4(r) to GECC’s Registration Statement on Form S-3, File No. 333-156929 (Commission file number 001-06461)).
	~~4(k)~~4(i)	Form of GECC Global Medium-Term Note, Series A, Floating Rate Registered Note (Incorporated by reference to Exhibit 4(s) to the GECC’s Registration Statement on Form S-3, File No. 333-156929 (Commission file number 001-06461)).
	~~4(l)~~	~~Eleventh~~Twelfth Amended and Restated Fiscal and Paying Agency Agreement among GECC, GE Capital Australia Funding Pty Ltd., GE Capital European Funding, GE Capital U.K. Funding and The Bank of New York Mellon and The Bank of New York Mellon (Luxembourg) S.A., as fiscal and paying agents, dated as of April 5, ~~2012~~2013 (Incorporated by reference to Exhibit ~~4(yy) to Post-Effective Amendment No.1~~4(i) to GECC’s ~~Registration Statement on~~ Form ~~S-3, File No. 333-178262~~10-K Report for the year ended December 31, 2013 (Commission file number 001-06461)).
~~(196)~~
				~~4(m)~~
	4(j)	Letter from the Senior Vice President and Chief Financial Officer of General Electric to GECC dated September 15, 2006, with respect to returning dividends, distributions or other payments to GECC in certain circumstances described in the Indenture for Subordinated Debentures dated September 1, 2006, between GECC and the Bank of New York, as successor trustee (Incorporated by reference to Exhibit 4(c) to GECC’s Post-Effective Amendment No. 2 to Registration Statement on Form S-3, File No. 333-132807 (Commission file number 001-06461)).

	~~4(n)~~	~~Form of Warrants issued on October 16, 2008 (Incorporated by reference to Exhibit 4(a) of General Electric’s Current Report on Form 8-K dated October 20, 2008 (Commission file number 001-00035)).~~

	~~4(o)~~	Amendment No. 1 to Warrants (originally issued on October 16, 2008) dated January 14, 2013 between General Electric Company and each Warrantholder named therein.*
	~~4(p)~~4(k)	Agreement to furnish to the Securities and Exchange Commission upon request a copy of instruments defining the rights of holders of certain long-term debt of the registrant and consolidated subsidiaries.*

	(10)	Except for ~~10(x)~~10(y), (z) and ~~(y)~~(aa) below, all of the following exhibits consist of Executive Compensation Plans or Arrangements:

		(a)	General Electric Incentive Compensation Plan, as amended effective July 1, 1991 (Incorporated by reference to Exhibit 10(a) to General Electric Annual Report on Form 10-K (Commission file number 001-00035) for the fiscal year ended December 31, 1991).

		(b)	General Electric Financial Planning Program, as amended through September 1993 (Incorporated by reference to Exhibit 10(h) to General Electric Annual Report on Form 10-K (Commission file number 001-00035) for the fiscal year ended December 31, 1993).

(195)

	(c)	General Electric Supplemental Life Insurance Program, as amended February 8, 1991 (Incorporated by reference to Exhibit 10(i) to General Electric Annual Report on Form 10-K (Commission file number 001-00035) for the fiscal year ended December 31, 1990).

	(d)	General Electric Directors’ Charitable Gift Plan, as amended through December 2002 (Incorporated by reference to Exhibit 10(i) to General Electric Annual Report on Form 10-K (Commission file number 001-00035) for the fiscal year ended December 31, 2002).

	(e)	General Electric Leadership Life Insurance Program, effective January 1, 1994 (Incorporated by reference to Exhibit 10(r) to General Electric Annual Report on Form 10-K (Commission file number 001-00035) for the fiscal year ended December 31, 1993).

	(f)	General Electric 1996 Stock Option Plan for Non-Employee Directors (Incorporated by reference to Exhibit A to the General Electric Proxy Statement for its Annual Meeting of Shareowners held on April 24, 1996 (Commission file number 001-00035)).

	(g)	General Electric Supplementary Pension Plan, as amended effective January 1, 2011 (Incorporated by reference to Exhibit 10(g) to General Electric’s Annual Report on Form 10-K (Commission file number 001-00035) for the fiscal year ended December 31, 2010).
	(h)	General Electric 2003 Non-Employee Director Compensation Plan, Amended and Restated as of ~~January 1, 2009 (Incorporated by reference to Exhibit 10(h) to General Electric's Annual Report on Form 10-K (Commission file number 001-00035) for the fiscal year ended December 31, 2008).~~February 7, 2014.*

	(i)	Amendment to Nonqualified Deferred Compensation Plans, dated as of December 14, 2004 (Incorporated by reference to Exhibit 10(w) to the General Electric Annual Report on Form 10-K (Commission file number 001-00035) for the fiscal year ended December 31, 2004).
~~(197)~~
	(j)	GE Retirement for the Good of the Company Program, as amended effective January 1, 2009 (Incorporated by reference to Exhibit 10(j) to General Electric’s Annual Report on Form 10-K (Commission file number 001-00035) for the fiscal year ended December 31, 2008.

	(k)	GE Excess Benefits Plan, effective January 1, 2009 (Incorporated by reference to Exhibit 10(k) to General Electric's Annual Report on Form 10-K (Commission file number 001-00035) for the fiscal year ended December 31, 2008).

	(l)	General Electric 2006 Executive Deferred Salary Plan, as amended January 1, 2009 (Incorporated by reference to Exhibit 10(l) to General Electric's Annual Report on Form 10-K (Commission file number 001-00035) for the fiscal year ended December 31, 2008).

	(m)	General Electric Company 2007 Long-Term Incentive Plan (as amended and restated April 25, 2012) (Incorporated by reference to Exhibit 99.1 to General Electric’s Registration Statement on Form S-8, dated May 4, 2012, File number 333-181177 (Commission file number 001-00035)).

	(n)	Form of Agreement for Stock Option Grants to Executive Officers under the General Electric Company 2007 Long-term Incentive Plan, as amended January 1, 2009 (Incorporated by reference to Exhibit 10(n) to General Electric's Annual Report on Form 10-K (Commission file number 001-00035) for the fiscal year ended December 31, 2008).

	(o)	Form of Agreement for Annual Restricted Stock Unit Grants to Executive Officers under the General Electric Company 2007 Long-term Incentive Plan, as amended January 1, 2009 (Incorporated by reference to Exhibit 10(o) to General Electric's Annual Report on Form 10-K (Commission file number 001-00035) for the fiscal year ended December 31, 2008).

(196)

		(p)	Form of Agreement for Periodic Restricted Stock Unit Grants to Executive Officers under the General Electric Company 2007 Long-term Incentive Plan (Incorporated by reference to Exhibit 10.4 of General Electric’s Current Report on Form 8-K dated April 27, 2007 (Commission file number 001-00035)).

		(q)	Form of Agreement for Long Term Performance Award Grants to Executive Officers under the General Electric Company 2007 Long-term Incentive Plan (as amended and restated April 25, 2012) (Incorporated by reference to Exhibit ~~10.5~~10(a) of General Electric’s ~~Current~~Quarterly Report on Form ~~8-K dated April 27, 2007~~10-Q for the quarter ended June 30, 2013 (Commission file number 001-00035)).

		(r)	Form of Agreement for Performance Stock Unit Grants to Executive Officers under the General Electric Company 2007 Long-term Incentive Plan (Incorporated by reference to Exhibit 10.6 of General Electric’s Current Report on Form 8-K dated April 27, 2007 (Commission file number 001-00035)).

		(s)	First Restatement of the General Electric International Employee Stock Purchase Plan effective May 1, 2002 (Incorporated by reference to Exhibit 4.1 to General Electric's Registration Statement on Form S-8, File No. 333-163106 (Commission file number 001-00035)).

		(t)	Form of Agreement for Long Term Performance Award Grants to Executive Officers under the General Electric Company 2007 Long-term Incentive Plan (Incorporated by reference to Exhibit 10 of General Electric’s Current Report on Form 8-K dated February 12, 2010 (Commission file number 001-00035)).

		(u)	Time Sharing Agreement dated November 22, 2010 between General Electric Company and Jeffrey R. Immelt (Incorporated by reference to Exhibit 10(z) to General Electric’s Annual Report on Form 10-K ~~(Commission file number 001-00035)~~ for the fiscal year ended December 31, ~~2010)~~2010 (Commission file number 001-00035)).
		(v) (w) (x)	GE Stock Option Grant Agreement Dated March 4, 2010 for Jeffrey R. Immelt Terms & Conditions as Amended April 18, 2011 (Incorporated by reference to Exhibit 10(h) of General Electric’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2011 (Commission file number 001-00035)).

~~(198)~~


		~~(w)~~	Non-Competition Agreement between General Electric Company and John Krenicki effective July 24, 2012 (Incorporated by reference to Exhibit 10(a) of General Electric’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 (Commission file number 001-00035)). Time Sharing Agreement dated March 13, 2013 between General Electric Company and Brackett B. Denniston III (Incorporated by reference to Exhibit 10(b) of General Electric’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 (Commission file number 001-00035)).
		~~(x)~~(y)	Amended and Restated Income Maintenance Agreement, dated October 29, 2009, between the Registrant and General Electric Capital Corporation (Incorporated by reference to Exhibit 10 to ~~General Electric Capital Corporation's~~GECC's Quarterly Report on Form 10-Q for the quarter ended September 30, 2009 (Commission file number 001-06461)).
		~~(y)~~ (z) (aa)	~~Three-Year Credit~~Transaction Agreement dated ~~March 19, 2010~~as of February 12, 2013 among ~~NBC Universal,~~General Electric Company, Comcast Corporation, National Broadcasting Company Holding, Inc., ~~the Financial Institutions Party Thereto JPMorgan Chase Bank, N.A., as Administrative Agent and Issuing Lender, Goldman Sachs Credit Partners L.P. and Morgan Stanley Senior Funding,~~Navy Holdings, Inc., ~~as Co-Syndication Agents~~NBCUniversal, LLC and ~~Bank of America, N.A. and Citigroup Global Markets Inc., as Co-Documentation Agents~~NBCUniversal Media, LLC (Incorporated by reference to Exhibit ~~10.1 to~~10(a) of General Electric’s ~~Current~~Quarterly Report on Form ~~8-K~~10-Q for the quarter ended March 31, 2013 (Commission file number 001-00035)). Amendment dated as of March 19, ~~2010~~2013 to the Transaction Agreement dated as of February 12, 2013 by and among General Electric Company, Comcast Corporation, NBCUniversal, LLC, NBCUniversal Media, LLC, National Broadcasting Company Holding, Inc. and Navy Holdings, Inc. (Incorporated by reference to Exhibit 10(c) of General Electric’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 (Commission file number 001-00035)).

(197)


	(11)	Statement re Computation of Per Share Earnings.**

	12(a)	Computation of Ratio of Earnings to Fixed Charges.*

	12(b)	Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends.*

	(21)	Subsidiaries of Registrant.*

	(23)	Consent of Independent Registered Public Accounting Firm.*

	(24)	Power of Attorney.*

	31(a)	Certification Pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.*

	31(b)	Certification Pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.*

	(32)	Certification Pursuant to 18 U.S.C. Section 1350.*
~~(199)~~
	99(a)	Securities Purchase Agreement, dated October 10, 2008, between General Electric Company and Berkshire Hathaway Inc. (Incorporated by reference to Exhibit 10(a) of General Electric’s Current Report on Form 8-K dated October 20, 2008 (Commission file number 001-00035)).

	~~99(b)~~	Undertaking for Inclusion in Registration Statements on Form S-8 of General Electric Company (Incorporated by reference to Exhibit 99(b) to General Electric Annual Report on Form 10-K (Commission file number 001-00035) for the fiscal year ended December 31, 1992).

	~~99(c)~~99(b)	Computation of Ratio of Earnings to Fixed Charges (Incorporated by reference to Exhibit 12(a) to ~~General Electric Capital Corporation's~~GECC’s Annual Report on Form 10-K for the fiscal year ended December 31, ~~2010~~2013 (Commission file number 001-06461)).

	(101)	The following materials from General Electric Company's Annual Report on Form 10-K for the year ended December 31, 2011, formatted in XBRL (eXtensible Business Reporting Language); (i) Statement of Earnings for the years ended December 31, 2013, 2012 ~~2011~~ and ~~2010,~~2011, (ii) Consolidated Statement of Comprehensive Income for the years ended December 31, 2013, 2012 ~~2011~~ and ~~2010,~~2011, (iii) Consolidated Statement of Changes in Shareowners' Equity for the years ended December 31, 2013, 2012 ~~2011~~ and ~~2010,~~2011, (iv) Statement of Financial Position at December 31, ~~2012~~2013 and ~~2011,~~2012, (v) Statement of Cash Flows for the years ended December 31, 2013, 2012 ~~2011~~ and ~~2010,~~2011, and (vi) the Notes to Consolidated Financial Statements.

*	Filed electronically herewith.
**	Information required to be presented in Exhibit 11 is provided in Note 20 to the consolidated financial statements in Part II, Item 8. “Financial Statements and Supplementary Data” of this Form 10-K Report in accordance with the provisions of Financial Accounting Standards Board Accounting Standards Codification 260, Earnings Per Share.

~~(200)~~(198)

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this annual report on Form 10-K for the fiscal year ended December 31, ~~2012,~~2013, to be signed on its behalf by the undersigned, and in the capacities indicated, thereunto duly authorized in the Town of Fairfield and State of Connecticut on the 2627th day of February ~~2013.~~2014.

		General Electric Company (Registrant)


	By	/s/ ~~Keith~~Jeffrey S. ~~Sherin~~Bornstein
		~~Keith~~Jeffrey S. ~~Sherin~~Bornstein Senior Vice ~~Chairman~~President and Chief Financial Officer (Principal Financial Officer)

~~(201)~~(199)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

	Signer	Title	Date



	/s/ ~~Keith~~Jeffrey S. ~~Sherin~~Bornstein	Principal Financial Officer	February ~~26, 2013~~27, 2014
	~~Keith~~Jeffrey S. ~~Sherin~~Bornstein Senior Vice ~~Chairman~~President and Chief Financial Officer


	/s/ ~~Jamie S. Miller~~Jan R. Hauser	Principal Accounting Officer	February ~~26, 2013~~27, 2014
	~~Jamie S. Miller~~Jan R. Hauser Vice President and Controller

	Jeffrey R. Immelt*	Chairman of the Board of Directors (Principal Executive Officer)

	W. Geoffrey Beattie* John J. Brennan*	Director Director
	James I. Cash, Jr.* Francisco D’Souza* Marijn E. Dekkers*	Director Director Director
	Ann M. Fudge*	Director
	Susan Hockfield*	Director
	Andrea Jung*	~~Director~~
	Alan G. Lafley*	Director
	Robert W. Lane*	Director
	Ralph S. Larsen*	Director
	Rochelle B. Lazarus*	Director
	James J. Mulva*	Director
	Sam NunnJames E. Rohr	Director
	Roger S. PenskeMary L. Schapiro	Director
	Robert J. Swieringa*	Director
	James S. Tisch*	Director
	Douglas A. Warner III*	Director

	A majority of the Board of Directors



*By	/s/ Christoph A. Pereira
	Christoph A. Pereira Attorney-in-fact February ~~26, 2013~~27, 2014

~~(202)~~(200)

	Common stock market price				Dividends		Common stock market price				Dividends
(In dollars)	High		Low		declared		High		Low		declared

2013
Fourth quarter							$	28.09	$	23.50	$	0.22
Third quarter								24.95		22.76		0.19
Second quarter								24.45		21.11		0.19
First quarter								23.90		20.68		0.19

2012
Fourth quarter	$	23.18	$	19.87	$	0.19	$	23.18	$	19.87	$	0.19
Third quarter		22.96		19.36		0.17		22.96		19.36		0.17
Second quarter		20.84		18.02		0.17		20.84		18.02		0.17
First quarter		21.00		18.23		0.17		21.00		18.23		0.17

2011
Fourth quarter	$	18.28	$	14.02	$	0.17
Third quarter		19.53		14.72		0.15
Second quarter		20.85		17.97		0.15
First quarter		21.65		18.12		0.14

	Audit resolutions –									Audit resolutions –
	effect on GE tax rate, excluding GECC earnings									effect on GE tax rate, excluding GECC earnings
	2012			2011			2010			2013			2012			2011

Tax on global activities including exports		(0.7)	%		(0.9)	%		(3.3)	%		(2.4)	%		(0.7)	%		(0.9)	%
U.S. business credits		–			(0.4)			(0.5)			(0.6)			-			(0.4)
All other – net		(0.9)			(0.7)			(0.8)			(1.0)			(0.9)			(0.7)
		(1.6)	%		(2.0)	%		(4.6)	%		(4.0)	%		(1.6)	%		(2.0)	%

Geographic Revenues

(In billions)		2012		2011		2010

U.S.	$	70.4	$	69.8	$	75.1
Europe		27.4		29.0		30.9
Pacific Basin		24.5		23.2		20.8
Americas		13.2		13.3		11.7
Middle East and Africa		11.9		12.0		11.1
Total	$	147.4	$	147.3	$	149.6

Geographic Revenues
(In billions)		2013		2012		2011

U.S.	$	68.6	$	70.5	$	69.9
Europe		25.3		26.7		28.2
Pacific Basin		25.5		24.4		23.2
Americas		13.1		13.2		13.2
Middle East and Africa		13.5		11.9		12.0
Total	$	146.0	$	146.7	$	146.5

Total Assets (continuing operations)

December 31 (In billions)		2012		2011

U.S.	$	346.6	$	336.6
Europe		192.8		212.5
Pacific Basin		56.4		62.3
Americas		33.6		46.7
Middle East and Africa		54.8		58.4
Total	$	684.2	$	716.5

	% of Consolidated Revenues									% of Consolidated Revenues
	2012			2011			2010			2013			2012			2011

Total sales to U.S. Government Agencies		3	%		3	%		3	%		3	%		3	%		3	%
Aviation segment defense-related sales		3			3			3			2			3			3


		2007		2008		2009		2010		2011		2012		2008		2009		2010		2011		2012		2013

GE	$	100	$	46	$	46	$	56	$	57	$	69	$	100	$	100	$	124	$	125	$	151	$	209
S&P 500		100		63		80		92		94		109		100		126		145		149		172		228
DJIA		100		68		83		95		103		114		100		123		140		152		167		216

(Dollars in millions; per-share amounts in dollars)	2012			2011			2010			2009			2008			2013			2012			2011			2010			2009

General Electric Company and
Consolidated Affiliates
Revenues and other income	$	147,359		$	147,288		$	149,567		$	154,396		$	179,769		$	146,045		$	146,684		$	146,542		$	148,875		$	153,686
Earnings from continuing operations attributable to the Company		14,679			14,227			12,613			10,881			17,786			15,177			14,624			14,122			12,577			10,993
Earnings (loss) from discontinued operations, net of taxes,
attributable to the Company		(1,038)			(76)			(969)			144			(376)			(2,120)			(983)			29			(933)			32
Net earnings attributable to the Company		13,641			14,151			11,644			11,025			17,410			13,057			13,641			14,151			11,644			11,025
Dividends declared(a)		7,372			7,498			5,212			6,785			12,649			8,060			7,372			7,498			5,212			6,785
Return on average GE shareowners’ equity(b)		12.1	%		12.1	%		12.3	%		11.7	%		17.1	%		12.2	%		12.1	%		12.1	%		12.3	%		11.7	%
Per common share
Earnings from continuing operations – diluted	$	1.39		$	1.24		$	1.15		$	0.99		$	1.75		$	1.47		$	1.38		$	1.23		$	1.15		$	1.00
Earnings (loss) from discontinued operations – diluted		(0.10)			(0.01)			(0.09)			0.01			(0.04)			(0.21)			(0.09)			-			(0.09)			-
Net earnings – diluted		1.29			1.23			1.06			1.01			1.72			1.27			1.29			1.23			1.06			1.01
Earnings from continuing operations – basic		1.39			1.24			1.15			0.99			1.76			1.48			1.39			1.23			1.15			1.00
Earnings (loss) from discontinued operations – basic		(0.10)			(0.01)			(0.09)			0.01			(0.04)			(0.21)			(0.09)			-			(0.09)			-
Net earnings – basic		1.29			1.24			1.06			1.01			1.72			1.28			1.29			1.24			1.06			1.01
Dividends declared		0.70			0.61			0.46			0.61			1.24			0.79			0.70			0.61			0.46			0.61
Stock price range	23.18-18.02				21.65-14.02			19.70-13.75			17.52-5.87			38.52-12.58		28.09-20.68			23.18-18.02			21.65-14.02			19.70-13.75			17.52-5.87
Year-end closing stock price		20.99			17.91			18.29			15.13			16.20			28.03			20.99			17.91			18.29			15.13
Cash and equivalents		77,356			84,501			78,943			70,479			48,378			88,555			77,268			84,440			78,917			70,469
Total assets of continuing operations		684,193			716,468			735,431			756,897			773,191			654,221			681,684			714,018			729,895			751,677
Total assets		685,328			718,189			748,491			782,714			798,398			656,560			684,999			718,003			745,426			780,309
Long-term borrowings		236,084			243,459			293,323			336,172			320,522			221,665			236,084			243,459			293,323			336,172
Common shares outstanding – average (in thousands)		10,522,922		10,591,146			10,661,078			10,613,717			10,079,923			10,222,198			10,522,922			10,591,146			10,661,078			10,613,717
Common shareowner accounts – average		537,000			570,000			588,000			605,000			604,000			512,000			537,000			570,000			588,000			605,000
Employees at year end(c)
United States		134,000			131,000			121,000			122,000			139,000			135,000			134,000			131,000			121,000			122,000
Other countries		171,000			170,000			152,000			168,000			169,000			172,000			171,000			170,000			152,000			168,000
Total employees(c)		305,000			301,000			273,000			290,000			308,000			307,000			305,000			301,000			273,000			290,000


GE data
Short-term borrowings	$	6,041		$	2,184		$	456		$	504		$	2,375		$	1,841		$	6,041		$	2,184		$	456		$	504
Long-term borrowings		11,428			9,405			9,656			11,681			9,827			11,515			11,428			9,405			9,656			11,681
Noncontrolling interests		777			1,006			4,098			5,797			6,678			836			777			1,006			4,098			5,797
GE shareowners’ equity		123,026			116,438			118,936			117,291			104,665			130,566			123,026			116,438			118,936			117,291
Total capital invested	$	141,272		$	129,033		$	133,146		$	135,273		$	123,545		$	144,758		$	141,272		$	129,033		$	133,146		$	135,273
Return on average total capital invested(b)		11.7	%		11.7	%		12.0	%		10.7	%		15.7	%		11.3	%		11.7	%		11.7	%		12.0	%		10.7	%
Borrowings as a percentage of total capital invested(b)		12.4	%		9.0	%		7.6	%		9.0	%		9.9	%		9.2	%		12.4	%		9.0	%		7.6	%		9.0	%
Working capital(b)	$	1,031		$	(10)		$	(1,618)		$	(1,596)		$	3,904		$	(1,278)		$	(567)		$	(1,712)		$	(3,035)		$	(1,596)


GECC data
Revenues	$	46,039		$	49,068		$	49,856		$	51,776		$	68,541		$	44,067		$	45,364		$	48,324		$	49,163		$	51,065
Earnings from continuing operations attributable to GECC		7,401			6,584			3,120			1,253			7,470			8,258			7,345			6,480			3,083			1,364
Earnings (loss) from discontinued operations, net of taxes,
attributable to GECC		(1,186)			(74)			(965)			162			(415)			(2,054)			(1,130)			30			(928)			51
Net earnings attributable to GECC		6,215			6,510			2,155			1,415			7,055			6,204			6,215			6,510			2,155			1,415
Net earnings attributable to GECC common shareowner		6,092			6,510			2,155			1,415			7,055			5,906			6,092			6,510			2,155			1,415
GECC shareowners' equity		81,890			77,110			68,984			70,833			53,279			82,694			81,890			77,110			68,984			70,833
Total borrowings and bank deposits		397,300			443,097			470,520			493,324			512,745			371,062			397,039			442,830			470,363			493,223
Ratio of debt to equity at GECC(d)		4.85:1	(d)		5.75:1	(d)		6.82:1	(d)		6.96:1			9.62:1			4.49:1			4.85:1			5.74:1			6.82:1			6.96:1
Total assets(e)	$	539,223		$	584,536		$	605,255		$	650,372		$	661,009		$	516,829		$	539,351		$	584,643		$	605,365		$	650,465

													Rest of		Total														Rest of		Total
December 31, 2012 (In millions)	Spain		Portugal		Ireland		Italy		Greece		Hungary		Europe		Europe
December 31, 2013 (In millions)																	Spain		Portugal		Ireland		Italy		Greece		Hungary		Europe		Europe

Financing receivables,
before allowance
for losses on
financing receivables	$	1,871	$	471	$	275	$	7,161	$	56	$	3,207	$	77,480	$	90,521	$	1,605	$	262	$	290	$	7,149	$	5	$	3,014	$	70,734	$	83,059

Allowance for losses on
financing receivables		(102)		(28)		(9)		(241)		-		(112)		(1,176)		(1,668)		(106)		(18)		(4)		(254)		-		(68)		(787)		(1,237)

Financing receivables,
net of allowance
for losses on
financing receivables(a)(b)		1,769		443		266		6,920		56		3,095		76,304		88,853		1,499		244		286		6,895		5		2,946		69,947		81,822

Investments(c)(d)		119		-		-		497		-		257		1,401		2,274		3		-		-		461		-		246		2,211		2,921

Cost and equity method
investments(e)		441		21		360		64		33		3		652		1,574		307		-		383		61		35		-		1,940		2,726

Derivatives,
net of collateral(c)(f)		3		-		-		90		-		-		176		269		2		-		-		63		-		-		102		167

ELTO(g)		524		65		374		853		253		345		9,901		12,315		401		108		419		754		242		328		9,286		11,538

Real estate held for
investment(g)		791		-		-		410		-		-		6,014		7,215		793		-		-		422		-		-		4,455		5,670

Total funded exposures(h)	$	3,647	$	529	$	1,000	$	8,834	$	342	$	3,700	$	94,448	$	112,500	$	3,005	$	352	$	1,088	$	8,656	$	282	$	3,520	$	87,941	$	104,844

Unfunded commitments(i)	$	17	$	8	$	177	$	297	$	5	$	683	$	8,376	$	9,563	$	20	$	7	$	38	$	218	$	3	$	827	$	5,784	$	6,897

For the years ended December 31 (In billions)		2013		2012		2011

Operating cash collections(a)	$	104.8	$	105.4	$	93.6
Operating cash payments		(96.5)		(94.0)		(81.5)
Cash dividends from GECC		6.0		6.4		-
GE cash from operating activities (GE CFOA)(a)	$	14.3	$	17.8	$	12.1

	Payments due by period										Payments due by period
										2018 and										2019 and
(In billions)		Total		2013		2014-2015		2016-2017		thereafter		Total		2014		2015-2016		2017-2018		thereafter

Borrowings and bank
deposits (Note 10)	$	414.1	$	139.2	$	103.2	$	60.9	$	110.8	$	383.0	$	116.7	$	103.4	$	59.4	$	103.5
Interest on borrowings and
bank deposits		92.8		9.7		14.2		10.1		58.8		91.4		9.6		14.0		10.7		57.1
Purchase obligations(a)(b)		65.8		33.8		13.5		5.8		12.7		67.5		34.2		10.0		9.9		13.4
Insurance liabilities (Note 11)(c)		14.0		1.6		2.9		2.0		7.5		13.5		1.8		2.1		1.7		7.9
Operating lease obligations
(Note 19)		4.1		0.9		1.3		0.9		1.0		4.3		0.9		1.4		1.0		1.0
Other liabilities(d)		83.7		19.3		10.0		8.3		46.1		86.7		22.1		9.7		6.4		48.5
Contractual obligations of
discontinued operations(e)		1.9		1.9		–		–		–		3.3		3.3		-		-		-

Industrial Operating Earnings

(In millions)		~~2012~~	2013


Earnings from continuing operations attributable to GE	$	~~14,679~~	15,177
Adjustments (net of tax): non-operating pension costs (income)		~~1,386~~	1,705
Operating earnings		~~16,065~~	16,882

Less GECC earnings from continuing
operations attributable to the Company		~~7,401~~	8,258
Less effect of GECC preferred stock dividends		~~(123)~~	(298)

Operating earnings excluding GECC earnings
from continuing operations and the effect of GECC preferred stock dividends
(Industrial operating earnings)	$	~~8,787~~	8,922

Industrial operating earnings as a percentage of
operating earnings		~~55%~~	53%

Industrial Segment Organic Revenues

(In millions)		2012		2011	V%


Consolidated revenues	$	147,359	$	147,288
Less GE Capital revenues		46,039		49,068
Less Corporate items and eliminations		(1,491)		2,995
Industrial segment revenues		102,811		95,225
Less the effects of:
Acquisitions, business dispositions
(other than dispositions of businesses
acquired for investment) and currency
exchange rates		972		1,112

Industrial revenues excluding the effects
of acquisitions, business dispositions
(other than dispositions of businesses
acquired for investment) and currency
exchange rates (industrial segment organic revenues)	$	101,839	$	94,113	8%

Ratio of Debt to Equity at GECC, Net of Cash and Equivalents and with Classification
of Hybrid Debt as Equity

December 31 (Dollars in millions)		2012		2011		2010

GECC debt	$	397,300	$	443,097	$	470,520
Less cash and equivalents		61,941		76,702		60,257
Less hybrid debt		7,725		7,725		7,725
	$	327,634	$	358,670	$	402,538

GECC equity	$	81,890	$	77,110	$	68,984
Plus hybrid debt		7,725		7,725		7,725
	$	89,615	$	84,835	$	76,709

Ratio		3.66:1		4.23:1		5.25:1

GE Pre-Tax Earnings from Continuing Operations, Excluding GECC Earnings from Continuing Operations
and the Corresponding Effective Tax Rates

(Dollars in millions)		2012			2011			2010

GE earnings from continuing operations before income taxes	$	16,852		$	19,231		$	15,156
Less GECC earnings from continuing operations		7,401			6,584			3,120
Total	$	9,451		$	12,647		$	12,036

GE provision for income taxes	$	2,013		$	4,839		$	2,024
GE effective tax rate, excluding GECC earnings		21.3	%		38.3	%		16.8	%

Reconciliation of U.S. Federal Statutory Income Tax Rate to GE Effective Tax Rate, Excluding GECC Earnings
	2012		2011		2010		2013		2012		2011

U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%	35.0	%	35.0	%	35.0	%
Reduction in rate resulting from
Tax on global activities including exports	(7.6)		(7.9)		(13.5)		(7.9)		(7.6)		(7.9)
U.S. business credits	(1.2)		(2.3)		(2.8)		(2.8)		(1.2)		(2.3)
NBCU gain	–		14.9		–		(1.3)		-		14.9
All other – net	(4.9)		(1.4)		(1.9)		(4.1)		(4.9)		(1.4)
	(13.7)		3.3		(18.2)		(16.1)		(13.7)		3.3
GE effective tax rate, excluding GECC earnings	21.3	%	38.3	%	16.8	%	18.9	%	21.3	%	38.3	%

Contractual Maturities of Investment in Available-for-Sale Debt Securities (Excluding
Mortgage-Backed and Asset-Backed Securities)
	Amortized		Estimated
(In millions)	cost		fair value

Due in
2013	$	1,937	$	1,960
2014-2017		7,191		7,204
2018-2022		4,803		5,304
2023 and later		17,901		21,998

Other intangible assets - net
Intangible assets subject to amortization	$	14,150	$	11,821
Indefinite-lived intangible assets(a)		160		159
Total	$	14,310	$	11,980

	2012								2011
					Dispositions,								Dispositions,
					currency								currency
	Balance at				exchange		Balance at		Balance at				exchange		Balance at
(In millions)	January 1		Acquisitions		and other		December 31		January 1		Acquisitions		and other		December 31

Power & Water	$	8,769	$	–	$	52	$	8,821	$	8,632	$	227	$	(90)	$	8,769
Oil & Gas		8,233		113		19		8,365		3,569		4,791		(127)		8,233
Energy Management		4,621		–		(11)		4,610		1,136		3,928		(443)		4,621
Aviation		5,996		55		(76)		5,975		6,073		–		(77)		5,996
Healthcare		16,631		221		(90)		16,762		16,338		305		(12)		16,631
Transportation		551		445		3		999		554		–		(3)		551
Home & Business
Solutions		594		11		6		611		578		24		(8)		594
GE Capital		27,230		–		74		27,304		27,508		6		(284)		27,230
Total	$	72,625	$	845	$	(23)	$	73,447	$	64,388	$	9,281	$	(1,044)	$	72,625

Pension Plan Participants
		Principal	Other		Principal	Other
		pension	pension		pension	pension
December 31, 2012	Total	plans	plans
December 31, 2013				Total	plans	plans

Active employees	136,000	101,000	35,000	128,000	94,000	34,000
Vested former employees	236,000	192,000	44,000	229,000	184,000	45,000
Retirees and beneficiaries	257,000	226,000	31,000	263,000	230,000	33,000
Total	629,000	519,000	110,000	620,000	508,000	112,000

Cost of Pension Plans
	Total						Principal pension plans						Other pension plans						Total						Principal pension plans						Other pension plans
(In millions)		2012		2011		2010		2012		2011		2010		2012		2011		2010		2013		2012		2011		2013		2012		2011		2013		2012		2011

Service cost for benefits earned	$	1,779	$	1,498	$	1,426	$	1,387	$	1,195	$	1,149	$	392	$	303	$	277	$	1,970	$	1,779	$	1,498	$	1,535	$	1,387	$	1,195	$	435	$	392	$	303
Prior service cost amortization		287		207		252		279		194		238		8		13		14		253		287		207		246		279		194		7		8		13
Expected return on plan assets		(4,394)		(4,543)		(4,857)		(3,768)		(3,940)		(4,344)		(626)		(603)		(513)		(4,163)		(4,394)		(4,543)		(3,500)		(3,768)		(3,940)		(663)		(626)		(603)
Interest cost on benefit obligations		2,993		3,176		3,179		2,479		2,662		2,693		514		514		486		2,983		2,993		3,176		2,460		2,479		2,662		523		514		514
Net actuarial loss amortization		3,701		2,486		1,546		3,421		2,335		1,336		280		151		210		4,007		3,701		2,486		3,664		3,421		2,335		343		280		151
Pension plans cost	$	4,366	$	2,824	$	1,546	$	3,798	$	2,446	$	1,072	$	568	$	378	$	474	$	5,050	$	4,366	$	2,824	$	4,405	$	3,798	$	2,446	$	645	$	568	$	378

	Principal pension plans									Other pension plans (weighted average)									Principal pension plans								Other pension plans (weighted average)
December 31		2012		2011		2010		2009			2012		2011		2010		2009		2013		2012		2011		2010		2013		2012		2011		2010

Discount rate		3.96	%	4.21	%	5.28	%	5.78	%		3.92	%	4.42	%	5.11	%	5.31	%	4.85	%	3.96	%	4.21	%	5.28	%	4.39	%	3.92	%	4.42	%	5.11	%
Compensation increases		3.90		3.75		4.25		4.20			3.30		4.31		4.44		4.56		4.00		3.90		3.75		4.25		3.76		3.30		4.31		4.44
Expected return on assets		8.00		8.00		8.00		8.50			6.82		7.09		7.25		7.29		7.50		8.00		8.00		8.00		6.92		6.82		7.09		7.25

Projected Benefit Obligation
	Principal pension plans				Other pension plans				Principal pension plans				Other pension plans
(In millions)	2012		2011		2012		2011		2013		2012		2013		2012

Balance at January 1	$	60,510	$	51,999	$	11,637	$	9,907	$	63,502	$	60,510	$	13,584	$	11,637
Service cost for benefits earned		1,387		1,195		392		303		1,535		1,387		435		392
Interest cost on benefit obligations		2,479		2,662		514		514		2,460		2,479		523		514
Participant contributions		157		167		16		37		156		157		14		16
Plan amendments		–		804		(6)		(58)		-		-		11		(6)
Actuarial loss(a)		2,021		6,803		890		1,344
Actuarial loss (gain) (a)										(6,406)		2,021		(575)		890
Benefits paid		(3,052)		(3,120)		(425)		(424)		(3,134)		(3,052)		(477)		(425)
Acquisitions (dispositions) / other - net		–		–		230		122		-		-		46		230
Exchange rate adjustments		–		–		336		(108)		-		-		(26)		336
Balance at December 31(b)	$	63,502	$	60,510	$	13,584	$	11,637	$	58,113	$	63,502	$	13,535	$	13,584

Accumulated Benefit Obligation
December 31 (In millions)	2012		2011		2013		2012

GE Pension Plan	$	55,664	$	53,040	$	50,967	$	55,664
GE Supplementary Pension Plan		4,114		3,643		3,946		4,114
Other pension plans		12,687		10,722		12,629		12,687

Plans With Assets Less Than ABO
December 31 (In millions)	2012		2011		2013		2012

Funded plans with assets less than ABO
Plan assets	$	53,276	$	49,284	$	57,430	$	53,276
Accumulated benefit obligations		66,069		61,582		60,715		66,069
Projected benefit obligations		69,234		64,879		63,532		69,234
Unfunded plans(a)
Accumulated benefit obligations	$	5,390	$	4,563		5,243		5,390
Projected benefit obligations		6,828		6,161		6,512		6,828

Fair Value of Plan Assets
	Principal pension plans				Other pension plans
(In millions)	2013		2012		2013		2012

Balance at January 1	$	44,738	$	42,137	$	9,702	$	8,381
Actual gain on plan assets		6,312		4,854		1,212		720
Employer contributions		225		642		673		737
Participant contributions		156		157		14		16
Benefits paid		(3,134)		(3,052)		(477)		(425)
Acquisitions (dispositions) / other - net		-		-		(31)		-
Exchange rate adjustments		-		-		(34)		273
Balance at December 31	$	48,297	$	44,738	$	11,059	$	9,702

Asset Allocation
							Other pension plans										Other pension plans
	Principal pension plans						(weighted average)						Principal pension plans				(weighted average)
	2012			2012			2012			2012			2013		2013		2013		2013
	Target			Actual			Target			Actual			Target		Actual		Target		Actual
	allocation			allocation			allocation			allocation			allocation		allocation		allocation		allocation

Equity securities		32 - 72	% (a)		44	% (b)		47	%		55	%	17 - 57	% (a)	45	% (b)	55	%	55	%
Debt securities (including cash equivalents)		10 - 40			30			33			34		13 - 53		31		32		34
Private equities		5 - 15			15			2			1		8 - 18		13		2		1
Real estate		4 - 14			7			6			5		2 - 12		7		6		5
Other		1 - 16			4			12			5		3 - 13		4		5		5

(In millions)		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

December 31, 2013

Equity securities
U.S. equity securities(a)									$	11,067	$	1,568	$	-	$	12,635
Non-U.S. equity securities(a)										7,832		1,292		-		9,124
Debt securities
Fixed income and cash investment funds										-		2,078		-		2,078
U.S. corporate(b)										-		4,555		-		4,555
Residential mortgage-backed										-		1,093		-		1,093
U.S. government and federal agency(c)										-		5,253		-		5,253
Other debt securities(d)										-		2,317		-		2,317
Private equities(a)										-		-		6,269		6,269
Real estate(a)										-		-		3,354		3,354
Other investments(e)										-		169		1,622		1,791
Total investments									$	18,899	$	18,325	$	11,245		48,469
Other(f)																(172)
Total assets															$	48,297

December 31, 2012

Equity securities
U.S. equity securities(a)	$	8,876	$	2,462	$	–	$	11,338	$	8,876	$	2,462	$	-	$	11,338
Non-U.S. equity securities(a)		6,699		1,644		–		8,343		6,699		1,644		-		8,343
Debt securities
Fixed income and cash investment funds		–		1,931		50		1,981		-		1,931		50		1,981
U.S. corporate(b)		–		2,758		–		2,758		-		2,758		-		2,758
Residential mortgage-backed		–		1,420		3		1,423		-		1,420		3		1,423
U.S. government and federal agency(c)		–		5,489		–		5,489		-		5,489		-		5,489
Other debt securities(d)		–		2,053		22		2,075		-		2,053		22		2,075
Private equities(a)		–		–		6,878		6,878		-		-		6,878		6,878
Real estate(a)		–		–		3,356		3,356		-		-		3,356		3,356
Other investments(e)		–		44		1,694		1,738		-		44		1,694		1,738
Total investments	$	15,575	$	17,801	$	12,003		45,379	$	15,575	$	17,801	$	12,003		45,379
Other(f)								(641)								(641)
Total assets							$	44,738							$	44,738

December 31, 2011

Equity securities
U.S. equity securities(a)	$	10,645	$	191	$	–	$	10,836
Non-U.S. equity securities(a)		7,360		644		–		8,004
Debt securities
Fixed income and cash investment funds		–		2,057		62		2,119
U.S. corporate(b)		–		2,126		3		2,129
Residential mortgage-backed		–		1,276		5		1,281
U.S. government and federal agency(c)		–		3,872		–		3,872
Other debt securities(d)		–		1,566		146		1,712
Private equities(a)		–		–		6,786		6,786
Real estate(a)		–		–		3,274		3,274
Other investments(e)		–		–		1,709		1,709
Total investments	$	18,005	$	11,732	$	11,985		41,722
Other(f)								415
Total assets							$	42,137

Pension Asset (Liability)
	Principal pension plans				Other pension plans				Principal pension plans				Other pension plans
December 31 (In millions)	2012		2011		2012		2011		2013		2012		2013		2012

Funded status(a)(b)	$	(18,764)	$	(18,373)	$	(3,882)	$	(3,256)	$	(9,816)	$	(18,764)	$	(2,476)	$	(3,882)
Pension asset (liability) recorded in the
Statement of Financial Position
Pension asset	$	–	$	–	$	141	$	158	$	-	$	-	$	325	$	141
Pension liabilities
Due within one year(c)		(159)		(148)		(62)		(52)		(170)		(159)		(67)		(62)
Due after one year		(18,605)		(18,225)		(3,961)		(3,362)		(9,646)		(18,605)		(2,734)		(3,961)
Net amount recognized	$	(18,764)	$	(18,373)	$	(3,882)	$	(3,256)	$	(9,816)	$	(18,764)	$	(2,476)	$	(3,882)
Amounts recorded in shareowners’
equity (unamortized)
Prior service cost	$	1,406	$	1,685	$	(4)	$	4
Prior service cost (credit)									$	1,160	$	1,406	$	9	$	(4)
Net actuarial loss		24,437		26,923		3,962		3,294		11,555		24,437		2,459		3,962
Total	$	25,843	$	28,608	$	3,958	$	3,298	$	12,715	$	25,843	$	2,468	$	3,958

Estimated Future Benefit Payments	Estimated Future Benefit Payments													Estimated Future Benefit Payments
												2018	-												2019	-
(In millions)		2013		2014		2015		2016		2017		2022			2014		2015		2016		2017		2018		2023

Principal pension	$	3,040	$	3,100	$	3,170	$	3,230	$	3,275	$	17,680		$	3,105	$	3,175	$	3,240	$	3,310	$	3,380	$	18,370
plans
Other pension
plans	$	455	$	465	$	475	$	485	$	495	$	2,670		$	495	$	505	$	510	$	525	$	540	$	2,935

Cost of Principal Retiree Benefit Plans
(In millions)	2012		2011		2010		2013		2012		2011

Service cost for benefits earned	$	219	$	216	$	241	$	229	$	219	$	216
Prior service cost amortization		518		647		631		393		518		647
Expected return on plan assets		(73)		(97)		(116)		(60)		(73)		(97)
Interest cost on benefit obligations		491		604		699		410		491		604
Net actuarial loss (gain) amortization		32		(110)		(22)		(45)		32		(110)
Net curtailment/settlement gain		(101)		–		–		-		(101)		-
Retiree benefit plans cost	$	1,086	$	1,260	$	1,433	$	927	$	1,086	$	1,260

Accumulated Postretirement Benefit Obligation (APBO)
(In millions)		2012		2011			2013			2012

Balance at January 1	$	13,056	$	12,010		$	11,804		$	13,056
Service cost for benefits earned		219		216			229			219
Interest cost on benefit obligations		491		604			410			491
Participant contributions		54		55			52			54
Plan amendments		(832)		25			-			(832)
Actuarial loss (gain)		(60)		911	(a)
Actuarial gain							(1,836)	(a)		(60)
Benefits paid		(758)		(765)			(746)			(758)
Net curtailment/settlement		(366)		–			-			(366)
Balance at December 31(b)	$	11,804	$	13,056		$	9,913		$	11,804

	1%		1%
(In millions)	Increase		Decrease

APBO at December 31, 2012	$	1,017	$	(860)
Service and interest cost in 2012		76		(63)

Retiree Benefit Asset (Liability)
December 31 (In millions)		2012		2011		2013		2012

Funded status(a)	$	(10,858)	$	(12,052)	$	(9,010)	$	(10,858)
Liability recorded in the Statement of Financial Position
Retiree health plans
Due within one year	$	(589)	$	(602)	$	(531)	$	(589)
Due after one year		(8,629)		(9,684)		(7,095)		(8,629)
Retiree life plans		(1,640)		(1,766)		(1,384)		(1,640)
Net liability recognized	$	(10,858)	$	(12,052)	$	(9,010)	$	(10,858)
Amounts recorded in shareowners' equity (unamortized)
Prior service cost	$	1,356	$	2,901	$	963	$	1,356
Net actuarial loss		182		401
Net actuarial loss (gain)						(1,667)		182
Total	$	1,538	$	3,302	$	(704)	$	1,538

Provision for Income Taxes
(In millions)		2012		2011		2010		2013		2012		2011

GE
Current tax expense	$	2,307	$	5,166	$	2,401	$	4,239	$	2,307	$	5,166
Deferred tax expense (benefit) from temporary differences		(294)		(327)		(377)		(2,571)		(294)		(327)
		2,013		4,839		2,024		1,668		2,013		4,839
GECC
Current tax expense (benefit)		1,368		775		(2,292)		(268)		1,379		783
Deferred tax expense (benefit) from temporary differences		(877)		124		1,307		(724)		(858)		123
		491		899		(985)		(992)		521		906
Consolidated
Current tax expense		3,675		5,941		109		3,971		3,686		5,949
Deferred tax expense (benefit) from temporary differences		(1,171)		(203)		930		(3,295)		(1,152)		(204)
Total	$	2,504	$	5,738	$	1,039	$	676	$	2,534	$	5,745