Document Information
Document Information | |
3 Months Ended
Sep. 30, 2009 | |
Document Information | |
Document type | 10-Q |
Document period end date | 2009-09-30 |
Amendment flag | true |
Amendment Description | Explanatory Note This amendment (Form 10-Q/A) is being filed for the sole purpose of furnishing an amended Interactive Data File on Exhibit 101, originally filed with our Form 10-Q for the period ended September 30, 2009, which was filed on November 2, 2009. The Interactive Data File furnished in the Form 10-Q as originally filed contained an error in the number of common shares outstanding on the entity information page and errors in a table in the Investment Securities note (Note 3) to the condensed, consolidated financial statements caused by technical transmission failures. No other changes have been made to the Form 10-Q. This Form 10-Q/A does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update any related disclosures made in the Form 10-Q. Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |
Entity Information
Entity Information (USD $) | |
In Millions, except Share data | 3 Months Ended
Sep. 30, 2009 |
Entity Information | |
Entity registrant name | General Electric Company |
Entity central index key | 0000040545 |
Entity current reporting status | Yes |
Entity voluntary filers | No |
Current fiscal year end date | --12-31 |
Entity filer category | Large Accelerated Filer |
Entity well known seasoned issuer | Yes |
Entity common stock shares outstanding | 10,647,495,000 |
Entity public float | $124,865 |
Condensed Statement of Earnings
Condensed Statement of Earnings (Unaudited) (USD $) | |||||||||||||||||||
In Millions | 3 Months Ended
Sep. 30, 2009 | 3 Months Ended
Sep. 30, 2008 | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 | |||||||||||||||
Revenues | |||||||||||||||||||
Sales of goods | $14,627 | [2] | $17,924 | [2] | $44,605 | [2] | $50,092 | [2] | |||||||||||
Sales of services | 10,516 | [2] | 11,236 | [2] | 30,743 | [2] | 31,489 | [2] | |||||||||||
Other income | 438 | [2],[3] | 544 | [2] | 900 | [2],[3] | 1,693 | [2] | |||||||||||
GECS earnings from continuing operations | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | |||||||||||
GECS revenues from services | 12,218 | [2],[3] | 17,530 | [2] | 39,097 | [2],[3] | 53,028 | [2] | |||||||||||
Total revenues | 37,799 | [2] | 47,234 | [2] | 115,345 | [2] | 136,302 | [2] | |||||||||||
Costs and expenses | |||||||||||||||||||
Cost of goods sold | 11,775 | [2] | 14,184 | [2] | 35,658 | [2] | 39,977 | [2] | |||||||||||
Cost of services sold | 6,773 | [2] | 7,953 | [2] | 19,760 | [2] | 20,882 | [2] | |||||||||||
Interest and other financial charges | 4,322 | [2] | 6,955 | [2] | 14,302 | [2] | 20,103 | [2] | |||||||||||
Investment contracts, insurance losses and insurance annuity benefits | 732 | [2] | 787 | [2] | 2,257 | [2] | 2,412 | [2] | |||||||||||
Provision for losses on financing receivables | 2,868 | [2] | 1,641 | [2] | 8,021 | [2] | 4,453 | [2] | |||||||||||
Other costs and expenses | 9,354 | [2] | 10,542 | [2] | 27,624 | [2] | 31,317 | [2] | |||||||||||
Total costs and expenses | 35,824 | [2] | 42,062 | [2] | 107,622 | [2] | 119,144 | [2] | |||||||||||
Earnings (loss) from continuing operations before income taxes | 1,975 | [2] | 5,172 | [2] | 7,723 | [2] | 17,158 | [2] | |||||||||||
Benefit (provision) for income taxes | 484 | [2] | (539) | [2] | 566 | [2] | (2,434) | [2] | |||||||||||
Earnings from continuing operations | 2,459 | [2] | 4,633 | [2] | 8,289 | [2] | 14,724 | [2] | |||||||||||
Earnings (loss) from discontinued operations, net of taxes | 40 | [2] | (165) | [2] | (175) | [2] | (534) | [2] | |||||||||||
Net earnings | 2,499 | [2] | 4,468 | [2] | 8,114 | [2] | 14,190 | [2] | |||||||||||
Less net earnings (loss) attributable to noncontrolling interests | 5 | [2] | 156 | [2] | 102 | [2] | 502 | [2] | |||||||||||
Net earnings attributable to the Company | 2,494 | [2] | 4,312 | [2] | 8,012 | [2] | 13,688 | [2] | |||||||||||
Preferred stock dividends declared | (75) | [2] | 0 | [2] | (225) | [2] | 0 | [2] | |||||||||||
Net earnings attributable to GE common shareowners | 2,419 | [2] | 4,312 | [2] | 7,787 | [2] | 13,688 | [2] | |||||||||||
Amounts attributable to the Company | |||||||||||||||||||
Earnings from continuing operations | 2,454 | [2] | 4,477 | [2] | 8,187 | [2] | 14,222 | [2] | |||||||||||
Earnings (loss) from discontinued operations, net of taxes | 40 | [2] | (165) | [2] | (175) | [2] | (534) | [2] | |||||||||||
Net earnings attributable to the Company | 2,494 | [2] | 4,312 | [2] | 8,012 | [2] | 13,688 | [2] | |||||||||||
Earnings from continuing operations | |||||||||||||||||||
Diluted earnings per share | 0.22 | [2] | 0.45 | [2] | 0.75 | [2] | 1.42 | [2] | |||||||||||
Basic earnings per share | 0.22 | [2] | 0.45 | [2] | 0.75 | [2] | 1.43 | [2] | |||||||||||
Net earnings | |||||||||||||||||||
Diluted earnings per share | 0.23 | [2] | 0.43 | [2] | 0.73 | [2] | 1.37 | [2] | |||||||||||
Basic earnings per share | 0.23 | [2] | 0.43 | [2] | 0.73 | [2] | 1.37 | [2] | |||||||||||
Dividends declared per share | 0.1 | [2] | 0.31 | [2] | 0.51 | [2] | 0.93 | [2] | |||||||||||
GE | |||||||||||||||||||
Revenues | |||||||||||||||||||
Sales of goods | 14,486 | [1] | 17,473 | [1] | 44,000 | [1] | 48,876 | [1] | |||||||||||
Sales of services | 10,639 | [1] | 11,395 | [1] | 31,159 | [1] | 32,024 | [1] | |||||||||||
Other income | 476 | [1],[3] | 659 | [1] | 1,035 | [1],[3] | 1,984 | [1] | |||||||||||
GECS earnings from continuing operations | 133 | [1] | 2,010 | [1] | 1,479 | [1] | 7,240 | [1] | |||||||||||
GECS revenues from services | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | |||||||||||
Total revenues | 25,734 | [1] | 31,537 | [1] | 77,673 | [1] | 90,124 | [1] | |||||||||||
Costs and expenses | |||||||||||||||||||
Cost of goods sold | 11,666 | [1] | 13,826 | [1] | 35,175 | [1] | 38,971 | [1] | |||||||||||
Cost of services sold | 6,897 | [1] | 8,112 | [1] | 20,177 | [1] | 21,417 | [1] | |||||||||||
Interest and other financial charges | 352 | [1] | 525 | [1] | 1,076 | [1] | 1,681 | [1] | |||||||||||
Investment contracts, insurance losses and insurance annuity benefits | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | |||||||||||
Provision for losses on financing receivables | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | |||||||||||
Other costs and expenses | 3,714 | [1] | 3,541 | [1] | 10,634 | [1] | 10,780 | [1] | |||||||||||
Total costs and expenses | 22,629 | [1] | 26,004 | [1] | 67,062 | [1] | 72,849 | [1] | |||||||||||
Earnings (loss) from continuing operations before income taxes | 3,105 | [1] | 5,533 | [1] | 10,611 | [1] | 17,275 | [1] | |||||||||||
Benefit (provision) for income taxes | (654) | [1] | (996) | [1] | (2,393) | [1] | (2,735) | [1] | |||||||||||
Earnings from continuing operations | 2,451 | [1] | 4,537 | [1] | 8,218 | [1] | 14,540 | [1] | |||||||||||
Earnings (loss) from discontinued operations, net of taxes | 40 | [1] | (165) | [1] | (175) | [1] | (534) | [1] | |||||||||||
Net earnings | 2,491 | [1] | 4,372 | [1] | 8,043 | [1] | 14,006 | [1] | |||||||||||
Less net earnings (loss) attributable to noncontrolling interests | (3) | [1] | 60 | [1] | 31 | [1] | 318 | [1] | |||||||||||
Net earnings attributable to the Company | 2,494 | [1] | 4,312 | [1] | 8,012 | [1] | 13,688 | [1] | |||||||||||
Preferred stock dividends declared | (75) | [1] | 0 | [1] | (225) | [1] | 0 | [1] | |||||||||||
Net earnings attributable to GE common shareowners | 2,419 | [1] | 4,312 | [1] | 7,787 | [1] | 13,688 | [1] | |||||||||||
Amounts attributable to the Company | |||||||||||||||||||
Earnings from continuing operations | 2,454 | [1] | 4,477 | [1] | 8,187 | [1] | 14,222 | [1] | |||||||||||
Earnings (loss) from discontinued operations, net of taxes | 40 | [1] | (165) | [1] | (175) | [1] | (534) | [1] | |||||||||||
Net earnings attributable to the Company | 2,494 | [1] | 4,312 | [1] | 8,012 | [1] | 13,688 | [1] | |||||||||||
Financial Services (GECS) | |||||||||||||||||||
Revenues | |||||||||||||||||||
Sales of goods | 213 | 579 | 691 | 1,474 | |||||||||||||||
Sales of services | 0 | 0 | 0 | 0 | |||||||||||||||
Other income | 0 | 0 | 0 | 0 | |||||||||||||||
GECS earnings from continuing operations | 0 | 0 | 0 | 0 | |||||||||||||||
GECS revenues from services | 12,533 | [3] | 17,852 | 39,969 | [3] | 54,027 | |||||||||||||
Total revenues | 12,746 | 18,431 | 40,660 | 55,501 | |||||||||||||||
Costs and expenses | |||||||||||||||||||
Cost of goods sold | 181 | 486 | 569 | 1,264 | |||||||||||||||
Cost of services sold | 0 | 0 | 0 | 0 | |||||||||||||||
Interest and other financial charges | 4,128 | 6,723 | 13,717 | 19,242 | |||||||||||||||
Investment contracts, insurance losses and insurance annuity benefits | 785 | 839 | 2,381 | 2,557 | |||||||||||||||
Provision for losses on financing receivables | 2,868 | 1,641 | 8,021 | 4,453 | |||||||||||||||
Other costs and expenses | 5,781 | 7,093 | 17,381 | 20,862 | |||||||||||||||
Total costs and expenses | 13,743 | 16,782 | 42,069 | 48,378 | |||||||||||||||
Earnings (loss) from continuing operations before income taxes | (997) | 1,649 | (1,409) | 7,123 | |||||||||||||||
Benefit (provision) for income taxes | 1,138 | 457 | 2,959 | 301 | |||||||||||||||
Earnings from continuing operations | 141 | 2,106 | 1,550 | 7,424 | |||||||||||||||
Earnings (loss) from discontinued operations, net of taxes | 40 | (170) | (157) | (568) | |||||||||||||||
Net earnings | 181 | 1,936 | 1,393 | 6,856 | |||||||||||||||
Less net earnings (loss) attributable to noncontrolling interests | 8 | 96 | 71 | 184 | |||||||||||||||
Net earnings attributable to the Company | 173 | 1,840 | 1,322 | 6,672 | |||||||||||||||
Preferred stock dividends declared | 0 | 0 | 0 | 0 | |||||||||||||||
Net earnings attributable to GE common shareowners | 173 | 1,840 | 1,322 | 6,672 | |||||||||||||||
Amounts attributable to the Company | |||||||||||||||||||
Earnings from continuing operations | 133 | 2,010 | 1,479 | 7,240 | |||||||||||||||
Earnings (loss) from discontinued operations, net of taxes | 40 | (170) | (157) | (568) | |||||||||||||||
Net earnings attributable to the Company | $173 | $1,840 | $1,322 | $6,672 | |||||||||||||||
[1]Represents the adding together of all affiliated companies except General Electric Capital Services, Inc. (GECS or financial services) which is presented on a one-line basis. | |||||||||||||||||||
[2]See accompanying notes. Separate information is shown for GE and Financial Services (GECS). Transactions between GE and GECS have been eliminated from the Consolidated columns. | |||||||||||||||||||
[3]See Note 3 for other-than-temporary impairment amounts. |
Condensed Statement of Financia
Condensed Statement of Financial Position (Unaudited) (USD $) | |||||||||||||||||||
In Millions | Sep. 30, 2009
| Dec. 31, 2008
| |||||||||||||||||
Assets | |||||||||||||||||||
Cash and equivalents | $61,374 | [3] | $48,187 | [3] | |||||||||||||||
Investment securities | 52,761 | [3] | 41,446 | [3] | |||||||||||||||
Current receivables | 19,613 | [3] | 21,411 | [3] | |||||||||||||||
Inventories | 13,092 | [3] | 13,674 | [3] | |||||||||||||||
Financing receivables - net | 340,688 | [3] | 365,168 | [3] | |||||||||||||||
Other GECS receivables | 14,339 | [3] | 13,439 | [3] | |||||||||||||||
Property, plant and equipment (including equipment leased to others) - net | 72,993 | [3] | 78,530 | [3] | |||||||||||||||
Investment in GECS | 0 | [3] | 0 | [3] | |||||||||||||||
Goodwill | 84,880 | [3] | 81,759 | [3] | |||||||||||||||
Other intangible assets - net | 15,010 | [3] | 14,977 | [3] | |||||||||||||||
All other assets | 110,235 | [3] | 106,899 | [3] | |||||||||||||||
Assets of businesses held for sale | 1,263 | [3] | 10,556 | [3] | |||||||||||||||
Assets of discontinued operations | 1,598 | [3] | 1,723 | [3] | |||||||||||||||
Total assets | 787,846 | [3] | 797,769 | [3] | |||||||||||||||
Liabilities and equity | |||||||||||||||||||
Short-term borrowings | 160,115 | [3] | 193,695 | [3] | |||||||||||||||
Accounts payable, principally trade accounts | 18,931 | [3] | 20,819 | [3] | |||||||||||||||
Progress collections and price adjustments accrued | 12,511 | [3] | 12,536 | [3] | |||||||||||||||
Other GE current liabilities | 19,229 | [3] | 21,560 | [3] | |||||||||||||||
Long-term borrowings | 358,092 | [3] | 330,067 | [3] | |||||||||||||||
Investment contracts, insurance liabilities and insurance annuity benefits | 32,549 | [3] | 34,032 | [3] | |||||||||||||||
All other liabilities | 53,708 | [3] | 64,796 | [3] | |||||||||||||||
Deferred income taxes | 5,308 | [3] | 4,584 | [3] | |||||||||||||||
Liabilities of businesses held for sale | 143 | [3] | 636 | [3] | |||||||||||||||
Liabilities of discontinued operations | 1,451 | [3] | 1,432 | [3] | |||||||||||||||
Total liabilities | 662,037 | [3] | 684,157 | [3] | |||||||||||||||
Preferred stock (30,000 shares outstanding at both September 30, 2009 and December 31, 2008) | 0 | [3] | 0 | [3] | |||||||||||||||
Common stock (10,647,495,000 and 10,536,897,000 shares outstanding at September 30, 2009 and December 31, 2008, respectively) | 702 | [3] | 702 | [3] | |||||||||||||||
Accumulated other comprehensive income - net | |||||||||||||||||||
Investment securities | (479) | [4] | (3,094) | [4] | |||||||||||||||
Currency translation adjustments | 4,043 | [4] | (299) | [4] | |||||||||||||||
Cash flow hedges | (1,856) | [4] | (3,332) | [4] | |||||||||||||||
Benefit plans | (14,469) | [4] | (15,128) | [4] | |||||||||||||||
Other capital | 37,861 | [3] | 40,390 | [3] | |||||||||||||||
Retained earnings | 124,530 | [3] | 122,123 | [3] | |||||||||||||||
Less common stock held in treasury | (32,803) | [3] | (36,697) | [3] | |||||||||||||||
Total GE shareowners' equity | 117,529 | [3] | 104,665 | [3] | |||||||||||||||
Noncontrolling interests | 8,280 | [1] | 8,947 | [1] | |||||||||||||||
Total equity | 125,809 | [3] | 113,612 | [3] | |||||||||||||||
Total liabilities and equity | 787,846 | [3] | 797,769 | [3] | |||||||||||||||
GE | |||||||||||||||||||
Assets | |||||||||||||||||||
Cash and equivalents | 5,207 | [2] | 12,090 | [2] | |||||||||||||||
Investment securities | 40 | [2] | 213 | [2] | |||||||||||||||
Current receivables | 12,872 | [2] | 15,064 | [2] | |||||||||||||||
Inventories | 13,013 | [2] | 13,597 | [2] | |||||||||||||||
Financing receivables - net | 0 | [2] | 0 | [2] | |||||||||||||||
Other GECS receivables | 0 | [2] | 0 | [2] | |||||||||||||||
Property, plant and equipment (including equipment leased to others) - net | 14,281 | [2] | 14,433 | [2] | |||||||||||||||
Investment in GECS | 70,658 | [2] | 53,279 | [2] | |||||||||||||||
Goodwill | 56,696 | [2] | 56,394 | [2] | |||||||||||||||
Other intangible assets - net | 11,172 | [2] | 11,364 | [2] | |||||||||||||||
All other assets | 23,787 | [2] | 22,435 | [2] | |||||||||||||||
Assets of businesses held for sale | 0 | [2] | 0 | [2] | |||||||||||||||
Assets of discontinued operations | 65 | [2] | 64 | [2] | |||||||||||||||
Total assets | 207,791 | [2] | 198,933 | [2] | |||||||||||||||
Liabilities and equity | |||||||||||||||||||
Short-term borrowings | 565 | [2] | 2,375 | [2] | |||||||||||||||
Accounts payable, principally trade accounts | 10,391 | [2] | 11,699 | [2] | |||||||||||||||
Progress collections and price adjustments accrued | 13,232 | [2] | 13,058 | [2] | |||||||||||||||
Other GE current liabilities | 19,229 | [2] | 21,624 | [2] | |||||||||||||||
Long-term borrowings | 11,683 | [2] | 9,827 | [2] | |||||||||||||||
Investment contracts, insurance liabilities and insurance annuity benefits | 0 | [2] | 0 | [2] | |||||||||||||||
All other liabilities | 32,813 | [2] | 32,767 | [2] | |||||||||||||||
Deferred income taxes | (4,126) | [2] | (3,949) | [2] | |||||||||||||||
Liabilities of businesses held for sale | 0 | [2] | 0 | [2] | |||||||||||||||
Liabilities of discontinued operations | 172 | [2] | 189 | [2] | |||||||||||||||
Total liabilities | 83,959 | [2] | 87,590 | [2] | |||||||||||||||
Preferred stock (30,000 shares outstanding at both September 30, 2009 and December 31, 2008) | 0 | [2] | 0 | [2] | |||||||||||||||
Common stock (10,647,495,000 and 10,536,897,000 shares outstanding at September 30, 2009 and December 31, 2008, respectively) | 702 | [2] | 702 | [2] | |||||||||||||||
Accumulated other comprehensive income - net | |||||||||||||||||||
Investment securities | (479) | [2] | (3,094) | [2] | |||||||||||||||
Currency translation adjustments | 4,043 | [2] | (299) | [2] | |||||||||||||||
Cash flow hedges | (1,856) | [2] | (3,332) | [2] | |||||||||||||||
Benefit plans | (14,469) | [2] | (15,128) | [2] | |||||||||||||||
Other capital | 37,861 | [2] | 40,390 | [2] | |||||||||||||||
Retained earnings | 124,530 | [2] | 122,123 | [2] | |||||||||||||||
Less common stock held in treasury | (32,803) | [2] | (36,697) | [2] | |||||||||||||||
Total GE shareowners' equity | 117,529 | [2] | 104,665 | [2] | |||||||||||||||
Noncontrolling interests | 6,303 | [2] | 6,678 | [2] | |||||||||||||||
Total equity | 123,832 | [2] | 111,343 | [2] | |||||||||||||||
Total liabilities and equity | 207,791 | [2] | 198,933 | [2] | |||||||||||||||
Financial Services (GECS) | |||||||||||||||||||
Assets | |||||||||||||||||||
Cash and equivalents | 56,898 | 37,486 | |||||||||||||||||
Investment securities | 52,723 | 41,236 | |||||||||||||||||
Current receivables | 0 | 0 | |||||||||||||||||
Inventories | 79 | 77 | |||||||||||||||||
Financing receivables - net | 348,518 | 372,456 | |||||||||||||||||
Other GECS receivables | 18,625 | 18,636 | |||||||||||||||||
Property, plant and equipment (including equipment leased to others) - net | 58,712 | 64,097 | |||||||||||||||||
Investment in GECS | 0 | 0 | |||||||||||||||||
Goodwill | 28,184 | 25,365 | |||||||||||||||||
Other intangible assets - net | 3,838 | 3,613 | |||||||||||||||||
All other assets | 87,941 | 85,721 | |||||||||||||||||
Assets of businesses held for sale | 1,263 | 10,556 | |||||||||||||||||
Assets of discontinued operations | 1,533 | 1,659 | |||||||||||||||||
Total assets | 658,314 | 660,902 | |||||||||||||||||
Liabilities and equity | |||||||||||||||||||
Short-term borrowings | 160,938 | 193,533 | |||||||||||||||||
Accounts payable, principally trade accounts | 12,501 | 13,882 | |||||||||||||||||
Progress collections and price adjustments accrued | 0 | 0 | |||||||||||||||||
Other GE current liabilities | 0 | 0 | |||||||||||||||||
Long-term borrowings | 347,415 | 321,068 | |||||||||||||||||
Investment contracts, insurance liabilities and insurance annuity benefits | 32,948 | 34,369 | |||||||||||||||||
All other liabilities | 21,021 | 32,090 | |||||||||||||||||
Deferred income taxes | 9,434 | 8,533 | |||||||||||||||||
Liabilities of businesses held for sale | 143 | 636 | |||||||||||||||||
Liabilities of discontinued operations | 1,279 | 1,243 | |||||||||||||||||
Total liabilities | 585,679 | 605,354 | |||||||||||||||||
Preferred stock (30,000 shares outstanding at both September 30, 2009 and December 31, 2008) | 0 | 0 | |||||||||||||||||
Common stock (10,647,495,000 and 10,536,897,000 shares outstanding at September 30, 2009 and December 31, 2008, respectively) | 1 | 1 | |||||||||||||||||
Accumulated other comprehensive income - net | |||||||||||||||||||
Investment securities | (478) | (3,097) | |||||||||||||||||
Currency translation adjustments | 1,409 | (1,258) | |||||||||||||||||
Cash flow hedges | (1,894) | (3,134) | |||||||||||||||||
Benefit plans | (374) | (367) | |||||||||||||||||
Other capital | 27,578 | 18,079 | |||||||||||||||||
Retained earnings | 44,416 | 43,055 | |||||||||||||||||
Less common stock held in treasury | 0 | 0 | |||||||||||||||||
Total GE shareowners' equity | 70,658 | 53,279 | |||||||||||||||||
Noncontrolling interests | 1,977 | 2,269 | |||||||||||||||||
Total equity | 72,635 | 55,548 | |||||||||||||||||
Total liabilities and equity | $658,314 | $660,902 | |||||||||||||||||
[1]Included accumulated other comprehensive income attributable to noncontrolling interests of $(83) million and $(194) million at September 30, 2009 and December 31, 2008, respectively. | |||||||||||||||||||
[2]Represents the adding together of all affiliated companies except General Electric Capital Services, Inc. (GECS or financial services) which is presented on a one-line basis. | |||||||||||||||||||
[3]See accompanying notes. Separate information is shown for GE and Financial Services (GECS). Transactions between GE and GECS have been eliminated from the Consolidated columns. | |||||||||||||||||||
[4]The sum of accumulated other comprehensive income - net was $(12,761) million and $(21,853) million at September 30, 2009 and December 31, 2008, respectively. |
1_Condensed Statement of Financ
Condensed Statement of Financial Position (Parenthetical)(Unaudited) (USD $) | ||
Sep. 30, 2009
| Dec. 31, 2008
| |
Condensed Statement of Financial Position (Parenthetical) | ||
Preferred stock, shares | 30,000 | 30,000 |
Common stock, shares | 10,647,495,000 | 10,536,897,000 |
Condensed Statement of Cash Flo
Condensed Statement of Cash Flows (Unaudited) (USD $) | |||||||||||||||||||
In Millions | 9 Months Ended
Sep. 30, 2009 | 9 Months Ended
Sep. 30, 2008 | |||||||||||||||||
Cash flows - operating activities | |||||||||||||||||||
Net earnings attributable to the Company | $8,012 | [3] | $13,688 | [3] | |||||||||||||||
Loss from discontinued operations | 175 | [3] | 534 | [3] | |||||||||||||||
Adjustments to reconcile net earnings attributable to the Company to cash provided from operating activities | |||||||||||||||||||
Depreciation and amortization of property, plant and equipment | 7,893 | [2] | 8,216 | [2] | |||||||||||||||
Earnings from continuing operations retained by GECS | 0 | [2] | 0 | [2] | |||||||||||||||
Deferred income taxes | 281 | [2] | 1,798 | [2] | |||||||||||||||
Decrease (increase) in GE current receivables | 2,181 | [2] | (1,344) | [2] | |||||||||||||||
Decrease (increase) in inventories | 350 | [2] | (1,765) | [2] | |||||||||||||||
Increase (decrease) in accounts payable | (1,355) | [2] | (411) | [2] | |||||||||||||||
Increase (decrease) in GE progress collections | (194) | [2] | 3,103 | [2] | |||||||||||||||
Provision for losses on financing receivables | 8,021 | [3] | 4,453 | [3] | |||||||||||||||
All other operating activities | (11,351) | [2] | (468) | [2] | |||||||||||||||
Cash from (used for) operating activities - continuing operations | 14,013 | [2] | 27,804 | [2] | |||||||||||||||
Cash from (used for) operating activities - discontinued operations | (62) | [2] | 497 | [2] | |||||||||||||||
Cash from (used for) operating activities | 13,951 | [2] | 28,301 | [2] | |||||||||||||||
Cash flows - investing activities | |||||||||||||||||||
Additions to property, plant and equipment | (5,808) | [2] | (11,484) | [2] | |||||||||||||||
Dispositions of property, plant and equipment | 3,689 | [2] | 7,286 | [2] | |||||||||||||||
Net decrease (increase) in GECS financing receivables | 37,117 | [2] | (26,898) | [2] | |||||||||||||||
Proceeds from sales of discontinued operations | 0 | [2] | 5,423 | [2] | |||||||||||||||
Proceeds from principal business dispositions | 9,676 | [2] | 4,480 | [2] | |||||||||||||||
Payments for principal businesses purchased | (5,994) | [2] | (27,042) | [2] | |||||||||||||||
Capital contribution from GE to GECS | 0 | [2] | 0 | [2] | |||||||||||||||
All other investing activities | (3,938) | [2] | (3,283) | [2] | |||||||||||||||
Cash from (used for) investing activities - continuing operations | 34,742 | [2] | (51,518) | [2] | |||||||||||||||
Cash from (used for) investing activities - discontinued operations | 66 | [2] | (616) | [2] | |||||||||||||||
Cash from (used for) investing activities | 34,808 | [2] | (52,134) | [2] | |||||||||||||||
Cash flows - financing activities | |||||||||||||||||||
Net increase (decrease) in borrowings (maturities of 90 days or less) | (32,788) | [2] | (18,298) | [2] | |||||||||||||||
Newly issued debt (maturities longer than 90 days) | 73,898 | [2] | 99,373 | [2] | |||||||||||||||
Repayments and other reductions (maturities longer than 90 days) | (67,007) | [2] | (45,055) | [2] | |||||||||||||||
Net dispositions (purchases) of GE shares for treasury | 498 | [2] | (1,678) | [2] | |||||||||||||||
Dividends paid to shareowners | (7,845) | [2] | (9,308) | [2] | |||||||||||||||
Capital contribution from GE to GECS | 0 | [2] | 0 | [2] | |||||||||||||||
All other financing activities | (2,324) | [2] | (750) | [2] | |||||||||||||||
Cash from (used for) financing activities - continuing operations | (35,568) | [2] | 24,284 | [2] | |||||||||||||||
Cash from (used for) financing activities - discontinued operations | 0 | [2] | (4) | [2] | |||||||||||||||
Cash from (used for) financing activities | (35,568) | [2] | 24,280 | [2] | |||||||||||||||
Increase (decrease) in cash and equivalents | 13,191 | [2] | 447 | [2] | |||||||||||||||
Cash and equivalents at beginning of year | 48,367 | [2] | 16,031 | [2] | |||||||||||||||
Cash and equivalents at September 30 | 61,558 | [2] | 16,478 | [2] | |||||||||||||||
Less cash and equivalents of discontinued operations at September 30 | 184 | [2] | 177 | [2] | |||||||||||||||
Cash and equivalents of continuing operations at September 30 | 61,374 | [3] | 16,301 | [2] | |||||||||||||||
GE | |||||||||||||||||||
Cash flows - operating activities | |||||||||||||||||||
Net earnings attributable to the Company | 8,012 | [1] | 13,688 | [1] | |||||||||||||||
Loss from discontinued operations | 175 | [1] | 534 | [1] | |||||||||||||||
Adjustments to reconcile net earnings attributable to the Company to cash provided from operating activities | |||||||||||||||||||
Depreciation and amortization of property, plant and equipment | 1,696 | [1] | 1,587 | [1] | |||||||||||||||
Earnings from continuing operations retained by GECS | (1,479) | [1] | (4,949) | [1] | |||||||||||||||
Deferred income taxes | (179) | [1] | (454) | [1] | |||||||||||||||
Decrease (increase) in GE current receivables | 2,330 | [1] | 41 | [1] | |||||||||||||||
Decrease (increase) in inventories | 412 | [1] | (1,624) | [1] | |||||||||||||||
Increase (decrease) in accounts payable | (869) | [1] | 444 | [1] | |||||||||||||||
Increase (decrease) in GE progress collections | 5 | [1] | 3,241 | [1] | |||||||||||||||
Provision for losses on financing receivables | 0 | [1] | 0 | [1] | |||||||||||||||
All other operating activities | 1,362 | [1] | 1,127 | [1] | |||||||||||||||
Cash from (used for) operating activities - continuing operations | 11,465 | [1] | 13,635 | [1] | |||||||||||||||
Cash from (used for) operating activities - discontinued operations | (2) | [1] | (9) | [1] | |||||||||||||||
Cash from (used for) operating activities | 11,463 | [1] | 13,626 | [1] | |||||||||||||||
Cash flows - investing activities | |||||||||||||||||||
Additions to property, plant and equipment | (1,770) | [1] | (2,263) | [1] | |||||||||||||||
Dispositions of property, plant and equipment | 0 | [1] | 0 | [1] | |||||||||||||||
Net decrease (increase) in GECS financing receivables | 0 | [1] | 0 | [1] | |||||||||||||||
Proceeds from sales of discontinued operations | 0 | [1] | 203 | [1] | |||||||||||||||
Proceeds from principal business dispositions | 858 | [1] | 58 | [1] | |||||||||||||||
Payments for principal businesses purchased | (357) | [1] | (2,053) | [1] | |||||||||||||||
Capital contribution from GE to GECS | (9,500) | [1] | 0 | [1] | |||||||||||||||
All other investing activities | (2) | [1] | (56) | [1] | |||||||||||||||
Cash from (used for) investing activities - continuing operations | (10,771) | [1] | (4,111) | [1] | |||||||||||||||
Cash from (used for) investing activities - discontinued operations | 2 | [1] | 9 | [1] | |||||||||||||||
Cash from (used for) investing activities | (10,769) | [1] | (4,102) | [1] | |||||||||||||||
Cash flows - financing activities | |||||||||||||||||||
Net increase (decrease) in borrowings (maturities of 90 days or less) | (12) | [1] | (1,719) | [1] | |||||||||||||||
Newly issued debt (maturities longer than 90 days) | 1,825 | [1] | 122 | [1] | |||||||||||||||
Repayments and other reductions (maturities longer than 90 days) | (1,598) | [1] | (145) | [1] | |||||||||||||||
Net dispositions (purchases) of GE shares for treasury | 498 | [1] | (1,678) | [1] | |||||||||||||||
Dividends paid to shareowners | (7,845) | [1] | (9,308) | [1] | |||||||||||||||
Capital contribution from GE to GECS | 0 | [1] | 0 | [1] | |||||||||||||||
All other financing activities | (445) | [1] | 0 | [1] | |||||||||||||||
Cash from (used for) financing activities - continuing operations | (7,577) | [1] | (12,728) | [1] | |||||||||||||||
Cash from (used for) financing activities - discontinued operations | 0 | [1] | 0 | [1] | |||||||||||||||
Cash from (used for) financing activities | (7,577) | [1] | (12,728) | [1] | |||||||||||||||
Increase (decrease) in cash and equivalents | (6,883) | [1] | (3,204) | [1] | |||||||||||||||
Cash and equivalents at beginning of year | 12,090 | [1] | 6,702 | [1] | |||||||||||||||
Cash and equivalents at September 30 | 5,207 | [1] | 3,498 | [1] | |||||||||||||||
Less cash and equivalents of discontinued operations at September 30 | 0 | [1] | 0 | [1] | |||||||||||||||
Cash and equivalents of continuing operations at September 30 | 5,207 | [1] | 3,498 | [1] | |||||||||||||||
Financial Services (GECS) | |||||||||||||||||||
Cash flows - operating activities | |||||||||||||||||||
Net earnings attributable to the Company | 1,322 | 6,672 | |||||||||||||||||
Loss from discontinued operations | 157 | 568 | |||||||||||||||||
Adjustments to reconcile net earnings attributable to the Company to cash provided from operating activities | |||||||||||||||||||
Depreciation and amortization of property, plant and equipment | 6,197 | 6,629 | |||||||||||||||||
Earnings from continuing operations retained by GECS | 0 | 0 | |||||||||||||||||
Deferred income taxes | 460 | 2,252 | |||||||||||||||||
Decrease (increase) in GE current receivables | 0 | 0 | |||||||||||||||||
Decrease (increase) in inventories | (2) | (10) | |||||||||||||||||
Increase (decrease) in accounts payable | (1,288) | (669) | |||||||||||||||||
Increase (decrease) in GE progress collections | 0 | 0 | |||||||||||||||||
Provision for losses on financing receivables | 8,021 | 4,453 | |||||||||||||||||
All other operating activities | (12,898) | (1,751) | |||||||||||||||||
Cash from (used for) operating activities - continuing operations | 1,969 | 18,144 | |||||||||||||||||
Cash from (used for) operating activities - discontinued operations | (60) | 506 | |||||||||||||||||
Cash from (used for) operating activities | 1,909 | 18,650 | |||||||||||||||||
Cash flows - investing activities | |||||||||||||||||||
Additions to property, plant and equipment | (4,231) | (9,468) | |||||||||||||||||
Dispositions of property, plant and equipment | 3,689 | 7,286 | |||||||||||||||||
Net decrease (increase) in GECS financing receivables | 36,953 | (28,359) | |||||||||||||||||
Proceeds from sales of discontinued operations | 0 | 5,220 | |||||||||||||||||
Proceeds from principal business dispositions | 8,818 | 4,422 | |||||||||||||||||
Payments for principal businesses purchased | (5,637) | (24,989) | |||||||||||||||||
Capital contribution from GE to GECS | 0 | 0 | |||||||||||||||||
All other investing activities | (3,012) | (2,948) | |||||||||||||||||
Cash from (used for) investing activities - continuing operations | 36,580 | (48,836) | |||||||||||||||||
Cash from (used for) investing activities - discontinued operations | 64 | (625) | |||||||||||||||||
Cash from (used for) investing activities | 36,644 | (49,461) | |||||||||||||||||
Cash flows - financing activities | |||||||||||||||||||
Net increase (decrease) in borrowings (maturities of 90 days or less) | (33,600) | (16,949) | |||||||||||||||||
Newly issued debt (maturities longer than 90 days) | 72,251 | 99,228 | |||||||||||||||||
Repayments and other reductions (maturities longer than 90 days) | (65,409) | (44,910) | |||||||||||||||||
Net dispositions (purchases) of GE shares for treasury | 0 | 0 | |||||||||||||||||
Dividends paid to shareowners | 0 | (2,291) | |||||||||||||||||
Capital contribution from GE to GECS | 9,500 | 0 | |||||||||||||||||
All other financing activities | (1,879) | (750) | |||||||||||||||||
Cash from (used for) financing activities - continuing operations | (19,137) | 34,328 | |||||||||||||||||
Cash from (used for) financing activities - discontinued operations | 0 | (4) | |||||||||||||||||
Cash from (used for) financing activities | (19,137) | 34,324 | |||||||||||||||||
Increase (decrease) in cash and equivalents | 19,416 | 3,513 | |||||||||||||||||
Cash and equivalents at beginning of year | 37,666 | 9,739 | |||||||||||||||||
Cash and equivalents at September 30 | 57,082 | 13,252 | |||||||||||||||||
Less cash and equivalents of discontinued operations at September 30 | 184 | 177 | |||||||||||||||||
Cash and equivalents of continuing operations at September 30 | $56,898 | $13,075 | |||||||||||||||||
[1]Represents the adding together of all affiliated companies except General Electric Capital Services, Inc. (GECS or financial services) which is presented on a one-line basis. | |||||||||||||||||||
[2]See accompanying notes. Separate information is shown for GE and Financial Services (GECS). Transactions between GE and GECS have been eliminated from the Consolidated columns and are discussed in Note 17. | |||||||||||||||||||
[3]See accompanying notes. Separate information is shown for GE and Financial Services (GECS). Transactions between GE and GECS have been eliminated from the Consolidated columns. |
Summary of Operating Segments
Summary of Operating Segments | |
3 Months Ended
Sep. 30, 2009 | |
Summary of operating segments | |
Summary of Operating Segments | Summary of Operating SegmentsGeneral Electric Company and consolidated affiliates Three months ended September 30 Nine months ended September 30 (Unaudited) (Unaudited) (In millions) 2009 2008 2009 2008 Revenues Energy Infrastructure $ 8,917 $ 9,769 $ 26,733 $ 27,164 Technology Infrastructure 10,209 11,450 31,200 33,761 NBC Universal 4,079 5,073 11,168 12,539 Capital Finance 12,161 17,292 38,100 52,242 Consumer Industrial 2,438 2,989 7,166 8,990 Total segment revenues 37,804 46,573 114,367 134,696 Corporate items and eliminations (5) 661 978 1,606 Consolidated revenues $ 37,799 $ 47,234 $ 115,345 $ 136,302 Segment profit(a) Energy Infrastructure $ 1,582 $ 1,425 $ 4,646 $ 4,074 Technology Infrastructure 1,748 1,900 5,384 5,657 NBC Universal 732 645 1,662 2,266 Capital Finance 263 2,020 2,008 7,602 Consumer Industrial 117 47 264 329 Total segment profit 4,442 6,037 13,964 19,928 Corporate items and eliminations (982) (39) (2,308) (1,290) GE interest and other financial charges (352) (525) (1,076) (1,681) GE provision for income taxes (654) (996) (2,393) (2,735) Earnings from continuing operations attributable tothe Company 2,454 4,477 8,187 14,222 Earnings (loss) from discontinued operations, net of taxes, attributableto the Company 40 (165) (175) (534) Consolidated net earnings attributable to the Company $ 2,494 $ 4,312 $ 8,012 $ 13,688 (a)Segment profit always excludes the effects of principal pension plans, results reported as discontinued operations, earnings attributable to noncontrolling interests of consolidated subsidiaries and accounting changes, and may exclude matters such as charges for restructuring; rationalization and other similar expenses; in-process research and development and certain other acquisition-related charges and balances; technology and product development costs; certain gains and losses from acquisitions or dispositions; and litigation settlements or other charges, responsibility for which preceded the current management team. Segment profit excludes or includes interest and other financial charges and income taxes according to how a particular segments management is measured excluded in determining segment profit, which we sometimes refer to as operating profit, for Energy Infrastructure, Technology Infrastructure, NBC Universal and Consumer Industrial; included in determining segment profit, which we sometimes refer to as net earnings, for Capital Finance.See accompanying notes to condensed, consolidated financial statements. |
Note 1 Summary of Significant A
Note 1 Summary of Significant Accounting Policies | |
3 Months Ended
Sep. 30, 2009 | |
Notes to Condensed Consolidated Financial Statements (Unaudited) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Notes to Condensed, Consolidated Financial Statements (Unaudited)1. Summary of Significant Accounting PoliciesThe accompanying condensed, consolidated financial statements represent the consolidation of General Electric Company and all companies that we directly or indirectly control, either through majority ownership or otherwise. See Note 1 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2008 (2008 Form 10-K), which discusses our consolidation and financial statement presentation. As used in this report on Form 10-Q (Report) and in our Annual Report on Form 10-K, GE represents the adding together of all affiliated companies except General Electric Capital Services, Inc. (GECS or financial services), which is presented on a one-line basis; GECS consists of General Electric Capital Services, Inc. and all of its affiliates; and Consolidated represents the adding together of GE and GECS with the effects of transactions between the two eliminated. GE includes Energy Infrastructure, Technology Infrastructure, NBC Universal and Consumer Industrial. GECS includes Capital Finance. We have reclassified certain prior-period amounts to conform to the current-periods presentation. Unless otherwise indicated, information in these notes to condensed, consolidated financial statements relates to continuing operations. Accounting ChangesThe Financial Accounting Standards Board (FASB) issued FASB Accounting Standards Codification (ASC) effective for financial statements issued for interim and annual periods ending after September 15, 2009. The ASC is an aggregation of previously issued authoritative U.S. generally accepted accounting principles (GAAP) in one comprehensive set of guidance organized by subject area. In accordance with the ASC, references to previously issued accounting standards have been replaced by ASC references. Subsequent revisions to GAAP will be incorporated into the ASC through Accounting Standards Updates (ASU).We adopted FASB ASC 820, Fair Value Measurements and Disclosures, in two steps; effective January 1, 2008, we adopted it for all financial instruments and non-financial instruments accounted for at fair value on a recurring basis and effective January 1, 2009, for all non-financial instruments accounted for at fair value on a non-recurring basis. This guidance establishes a new framework for measuring fair value and expands related disclosures. See Note 14.On January 1, 2009, we adopted an amendment to FASB ASC 805, Business Combinations. This amendment significantly changed the accounting for business acquisitions both during the period of the acquisition and in subsequent periods. Among the more significant changes in the accounting for acquisitions are the following: Acquired in-process research and development (IPRD) is accounted for as an asset, with the cost recognized as the research and development is realized or abandoned. IPRD was previously expensed at the time of the acquisition. Contingent consideration is recorded at fair value as an element of purchase price with subsequent adjustments recognized in operations. Contingent consideration was previousl |
Note 2 Discontinued Operations
Note 2 Discontinued Operations | |
3 Months Ended
Sep. 30, 2009 | |
Notes to Condensed Consolidated Financial Statements (Unaudited) | |
DISCONTINUED OPERATIONS | 2. Discontinued OperationsDiscontinued operations 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), Plastics, Advanced Materials, GE Life, Genworth Financial, Inc. (Genworth) and most of GE Insurance Solutions Corporation (GE Insurance Solutions). Associated results of operations, financial position and cash flows are separately reported as discontinued operations for all periods presented. GE Money JapanDuring the third quarter of 2007, we committed to a plan to sell 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. As a result, we recognized an after-tax loss of $908 million in 2007 and an incremental loss in 2008 of $361 million. In connection with the transaction, GE Money Japan reduced the proceeds on the sale for estimated interest refund claims in excess of the statutory interest rate. Proceeds from the sale may be increased or decreased based on the actual claims experienced in accordance with terms specified in the agreement, and will not be adjusted unless claims exceed approximately $3,000 million. During the second quarter of 2009, we accrued $132 million, which represents the amount by which we expect claims to exceed those levels and is based on our historical and recent claims experience and the estimated future requests, taking into consideration the ability and likelihood of customers to make claims and other industry risk factors. Uncertainties around the status of laws and regulations and lack of certain information related to the individual customers make it difficult to develop a meaningful estimate of the aggregate claims exposure. We will continue to review our estimated exposure quarterly, and make adjustments when required. GE Money Japan revenues from discontinued operations were an insignificant amount and $209 million in the third quarters of 2009 and 2008, respectively, and an insignificant amount and $760 million in the first nine months of 2009 and 2008, respectively. In total, GE Money Japan losses from discontinued operations, net of taxes, were $10 million and $160 million in the third quarters of 2009 and 2008, respectively, and $142 million and $508 million in the first nine months of 2009 and 2008, respectively.WMCDuring the fourth quarter of 2007, we completed the sale of our U.S. mortgage business. In connection with the transaction, WMC retained certain obligations related to loans sold prior to the disposal of the business, including WMCs contractual obligations to repurchase previously sold loans as to which there was an early payment default or with respect to which certain contractual representations and warranties were not met. Reserves related to these obligations were $212 million at September 30, 2009, and $244 mil |
Note 3 Investment Securities
Note 3 Investment Securities | |
3 Months Ended
Sep. 30, 2009 | |
Notes to Condensed Consolidated Financial Statements (Unaudited) | |
INVESTMENT SECURITIES | 3. Investment securitiesThe vast majority of our investment securities are classified as available-for-sale and comprise mainly investment-grade debt securities supporting obligations to annuitants and policyholders in our run-off insurance operations and holders of guaranteed investment contracts. At September 30, 2009 December 31, 2008 Gross Gross Gross Gross Amortized unrealized unrealized Estimated Amortized unrealized unrealized Estimated (In millions) cost gains losses fair value cost gains losses fair value GE Debt U.S. corporate $ 25 $ 0 $ 0 $ 25 $ 182 $ 0 $ 0 $ 182 Equity available-for-sale 15 1 (1) 15 32 0 (1) 31 40 1 (1) 40 214 0 (1) 213 GECS Debt U.S. corporate 22,909 1,435 (957) 23,387 22,183 512 (2,477) 20,218 State and municipal 2,281 71 (218) 2,134 1,556 19 (94) 1,481 Residential mortgage- backed(a) 4,223 96 (882) 3,437 5,326 70 (1,052) 4,344 Commercial mortgage-backed 3,001 83 (541) 2,543 2,910 14 (788) 2,136 Asset-backed 3,029 42 (339) 2,732 3,173 3 (691) 2,485 Corporate non-U.S. 1,703 63 (53) 1,713 1,441 14 (166) 1,289 Government non-U.S. 3,321 61 (12) 3,370 1,300 61 (19) 1,342 U.S. government and federal agency 3,492 66 0 3,558 739 65 (100) 704 Retained interests(b)(c) 8,245 248 (75) 8,418 6,395 113 (152) 6,356 Equity Available-for-sale 588 198 (14) 772 629 24 (160) 493 Trading 659 0 0 659 388 0 0 388 53,451 2,363 (3,091) 52,723 46,040 895 (5,699) 41,236 Eliminations (2) 0 0 (2) (7) 0 4 (3) Total $ 53,489 $ 2,364 $ (3,092) $ 52,761 $ 46,247 $ 895 $ (5,696) $ 41,446 (a)Substantially collateralized by U.S. mortgages.(b)Included $1,846 million and $1,752 million of retained interests at September 30, 2009 and December 31, 2008, respectively, accounted for at fair value in accordance with FASB ASC 815, Derivatives and Hedging. See Note 16.(c)Amortized cost and estimated fair value included $23 million and $20 million of trading securities at September 30, 2009 and December 31, 2008, respectively.The following tables present the estimated fair values and gross unrealized losses of our available-for-sale investment securities. In loss position for Less than 12 months 12 months or more Gross Gross Estimated unrealized Estimated unrealized (In millions) fair value losses fair value losses September 30, 2009 Debt U.S. corporate $ 1,779 $ (60) $ 5,276 $ (897) State and municipal 388 (120) 512 (98) Residential mortgage-backed 211 (23) 1,753 (859) Commercial mortgage-backed 10 (2) 1,362 (539) Asset-backed 96 (4) 1,427 (335) Corporate non-U.S. 248 (13) 521 (40) Government non-U.S. 1,078 (7) 254 (5) U.S. government and federal agency 0 0 0 0 Retained interests 442 (28) 108 (47) Equity 128 (9) 32 (6) Total $ 4,380 $ (266) $ 11,245 $ (2,826) December 31, 2008 |
Note 4 Inventories
Note 4 Inventories | |
3 Months Ended
Sep. 30, 2009 | |
Notes to Condensed Consolidated Financial Statements (Unaudited) | |
INVENTORIES | 4. InventoriesInventories consisted of the following. At September 30, December 31, (In millions) 2009 2008 Raw materials and work in process $ 8,365 $ 8,710 Finished goods 4,693 5,109 Unbilled shipments 689 561 13,747 14,380 Less revaluation to LIFO (655) (706) Total $ 13,092 $ 13,674 |
Note 5 GECS Financing Receivabl
Note 5 GECS Financing Receivables and Allowance for Losses on Financing Receivables | |
3 Months Ended
Sep. 30, 2009 | |
Notes to Condensed Consolidated Financial Statements (Unaudited) | |
GECS FINANCING RECEIVABLES | 5. GECS Financing Receivables and Allowance for Losses on Financing ReceivablesGECS financing receivables net, consisted of the following. At September 30, December 31, (In millions) 2009 2008 Loans, net of deferred income $ 298,432 $ 310,203 Investment in financing leases, net of deferred income 57,446 67,578 355,878 377,781 Less allowance for losses (7,360) (5,325) Financing receivables net(a) $ 348,518 $ 372,456 (a)Included $4,406 million and $6,461 million related to consolidated, liquidating securitization entities at September 30, 2009 and December 31, 2008, respectively. In addition, financing receivables at September 30, 2009 and December 31, 2008 included $2,880 million and $2,736 million, respectively, relating to loans that had been acquired in a transfer but have been subject to credit deterioration since origination per FASB ASC 310, Receivables.Effective January 1, 2009, loans acquired in a business acquisition are recorded at fair value, which incorporates our estimate at the acquisition date of the credit losses over the remaining life of the portfolio. As a result, the allowance for loan losses is not carried over at acquisition. This may result in lower reserve coverage ratios prospectively. Details of financing receivables net follow. At September 30, December 31, (In millions) 2009 2008 Commercial Lending and Leasing (CLL)(a) Americas $ 92,263 $ 105,410 Europe 40,383 37,767 Asia 14,096 16,683 Other 776 786 147,518 160,646 Consumer(a) Non-U.S. residential mortgages 61,308 60,753 Non-U.S. installment and revolving credit 25,197 24,441 U.S. installment and revolving credit 22,324 27,645 Non-U.S. auto 14,366 18,168 Other 13,191 11,541 136,386 142,548 Real Estate 45,471 46,735 Energy Financial Services 8,362 8,392 GE Capital Aviation Services (GECAS)(b) 15,046 15,429 Other(c) 3,095 4,031 355,878 377,781 Less allowance for losses (7,360) (5,325) Total $ 348,518 $ 372,456 (a)During the first quarter of 2009, we transferred Artesia from CLL to Consumer. Prior-period amounts were reclassified to conform to the current-periods presentation.(b)Included loans and financing leases of $12,927 million and $13,078 million at September 30, 2009 and December 31, 2008, respectively, related to commercial aircraft at Aviation Financial Services.(c)Consisted of loans and financing leases related to certain consolidated, liquidating securitization entities.Individually impaired loans are defined by GAAP as 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. An analysis of impaired loans and specific reserves follows. The vast majority of our consumer and a portion of our CLL nonearning receivables are excluded from this definition, as they represent smaller balance homogeneous loans that we evaluate collectively by portfolio for impairment. At September 30, December 31, (In millions) 2009 2008 Loans requiring allowance for losses $ 8,842 $ 2,712 Loans expec |
Note 6 Property, Plant And Equi
Note 6 Property, Plant And Equipment | |
3 Months Ended
Sep. 30, 2009 | |
Notes to Condensed Consolidated Financial Statements (Unaudited) | |
PROPERTY, PLANT AND EQUIPMENT | 6. Property, Plant and EquipmentProperty, plant and equipment (including equipment leased to others) net, consisted of the following. At September 30, December 31, (In millions) 2009 2008 Original cost $ 118,916 $ 125,671 Less accumulated depreciation and amortization (45,923) (47,141) Property, plant and equipment (including equipment leased to others) net $ 72,993 $ 78,530 |
Note 7 Goodwill And Other Intan
Note 7 Goodwill And Other Intangible Assets | |
3 Months Ended
Sep. 30, 2009 | |
Notes to Condensed Consolidated Financial Statements (Unaudited) | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 7. Goodwill and Other Intangible AssetsGoodwill and other intangible assets net, consisted of the following. At September 30, December 31, (In millions) 2009 2008 Goodwill $ 84,880 $ 81,759 Other intangible assets Intangible assets subject to amortization $ 12,640 $ 12,623 Indefinite-lived intangible assets(a) 2,370 2,354 Total $ 15,010 $ 14,977 (a)Indefinite-lived intangible assets principally comprised trademarks, tradenames and U.S. Federal Communications Commission licenses.Changes in goodwill balances follow. Acquisitions/ Dispositions, Balance acquisition currency Balance January 1, accounting exchange September 30, (In millions) 2009 adjustments and other 2009 Energy Infrastructure $ 9,943 $ (146) $ 350 $ 10,147 Technology Infrastructure 26,684 413 (364) 26,733 NBC Universal 18,973 20 4 18,997 Capital Finance 25,365 2,603 216 28,184 Consumer Industrial 794 0 25 819 Total $ 81,759 $ 2,890 $ 231 $ 84,880 Goodwill related to new acquisitions in the first nine months of 2009 was $2,743 million and included acquisitions of BAC Credomatic (BAC) ($1,309 million) and Interbanca S.p.A. (Interbanca) ($1,075 million) at Capital Finance and Airfoils Technologies International Singapore Pte. Ltd. (ATI-Singapore) ($337 million) at Technology Infrastructure. During the first nine months of 2009, the goodwill balance increased by $147 million related to acquisition accounting adjustments for prior-year acquisitions. The most significant of these adjustments was an increase of $180 million associated with the 2008 acquisition of CitiCapital at Capital Finance, partially offset by a decrease of $139 million associated with the 2008 acquisition of Hydril Pressure Control by Energy Infrastructure. Also during the first nine months of 2009, goodwill balances increased $231 million, primarily as a result of the weaker U.S. dollar ($1,581 million), partially offset by the deconsolidation of Penske Truck Leasing Co., L.P. (PTL) ($634 million) at Capital Finance and the disposition of GE Homeland Protection, Inc. ($423 million) at Technology Infrastructure.On March 20, 2009, we increased our ownership in ATI-Singapore from 49% to 100% and concurrently acquired from the same seller a controlling financial interest in certain affiliates. We remeasured our previous equity interests to fair value, resulting in a pre-tax gain of $254 million which is reported in other income.On June 25, 2009, we increased our ownership in BAC from 49.99% to 75% for a purchase price of $623 million, in accordance with terms of a previous agreement. We remeasured our previously held equity investment to fair value, resulting in a pre-tax gain of $343 million, which is reported in GECS revenues from services. We test goodwill for impairment annually and more frequently if circumstances warrant. We determine fair values for each of the reporting units using an income approach. When available and as appropriate, we use comparative market multiples to corroborate discounted cash flow results. For purposes of the income approach, fair value is determined based on the present value of |
Note 8 GECS Borrowings
Note 8 GECS Borrowings | |
3 Months Ended
Sep. 30, 2009 | |
Notes to Condensed Consolidated Financial Statements (Unaudited) | |
GECS BORROWINGS | 8. GECS BorrowingsGECS borrowings are summarized in the following table. At (In millions) September 30, December 31, 2009 2008 Short-term borrowings Commercial paper U.S. Unsecured(a) $ 40,135 $ 62,768 Asset-backed(b) 2,884 3,652 Non-U.S. 9,871 9,033 Current portion of long-term debt(a)(c)(d) 69,324 69,682 Bank deposits(e) 25,738 29,634 Bank borrowings(f) 5,041 10,569 GE Interest Plus notes(g) 6,520 5,633 Other 1,425 2,562 Total 160,938 193,533 Long-term borrowings Senior notes Unsecured(a)(d) 322,280 298,665 Asset-backed(h) 4,069 5,002 Subordinated notes(i) 2,711 2,866 Subordinated debentures(j) 7,706 7,315 Bank deposits(k) 10,649 7,220 Total 347,415 321,068 Total borrowings $ 508,353 $ 514,601 (a)General Electric Capital Corporation (GE Capital) had issued and outstanding $59,110 million ($3,660 million commercial paper and $55,450 million long-term borrowings) and $35,243 million ($21,823 million commercial paper and $13,420 million long-term borrowings) of senior, unsecured debt that was guaranteed by the Federal Deposit Insurance Corporation (FDIC) under the Temporary Liquidity Guarantee Program at September 30, 2009 and December 31, 2008, respectively. GE Capital and GE are parties to an Eligible Entity Designation Agreement and GE Capital is subject to the terms of a Master Agreement, each entered into with the FDIC. The terms of these agreements include, among other things, a requirement that GE and GE Capital reimburse the FDIC for any amounts that the FDIC pays to holders of GE Capital debt that is guaranteed by the FDIC.(b)Consists entirely of obligations of consolidated, liquidating securitization entities. See Note 16.(c)Included $239 million and $326 million of asset-backed senior notes, issued by consolidated, liquidating securitization entities at September 30, 2009 and December 31, 2008, respectively. (d)Included $1,665 million ($74 million short-term and $1,591 million long-term) of borrowings under European government-sponsored programs at September 30, 2009.(e)Included $20,893 million and $11,793 million of deposits in non-U.S. banks at September 30, 2009 and December 31, 2008, respectively, and included certificates of deposits distributed by brokers of $4,845 million and $17,841 million at September 30, 2009 and December 31, 2008, respectively.(f)Term borrowings from banks with an original term to maturity of less than 12 months. (g)Entirely variable denomination floating rate demand notes.(h)Included $895 million and $2,104 million of asset-backed senior notes, issued by consolidated, liquidating securitization entities at September 30, 2009 and December 31, 2008, respectively. See Note 16.(i)Included $417 million and $750 million of subordinated notes guaranteed by GE at September 30, 2009 and December 31, 2008, respectively.(j)Subordinated debentures receive rating agency equity credit and were hedged at issuance to the U.S. dollar equivalent of $7,725 million. (k)Included certificates of deposits distributed by brokers with maturities greater than one year of $9,898 million and $6,699 million at |
Note 9 Postretirement Benefits
Note 9 Postretirement Benefits Plans | |
3 Months Ended
Sep. 30, 2009 | |
Notes to Condensed Consolidated Financial Statements (Unaudited) | |
POSTRETIREMENT BENEFIT PLANS | 9. Postretirement Benefit Plans We sponsor a number of pension and retiree health and life insurance benefit plans. Principal pension plans include the GE Pension Plan and the GE Supplementary Pension Plan. Principal retiree benefit plans generally provide health and life insurance benefits to employees who retire under the GE Pension Plan with 10 or more years of service. Other pension plans include the U.S. and non-U.S. pension plans with pension assets or obligations greater than $50 million. Smaller pension plans and other retiree benefit plans are not material individually or in the aggregate. The effect on operations of the pension plans follows. Principal Pension Plans Three months ended September 30 Nine months ended September 30 (In millions) 2009 2008 2009 2008 Expected return on plan assets $ (1,125) $ (1,075) $ (3,378) $ (3,225) Service cost for benefits earned 522 314 1,211 934 Interest cost on benefit obligation 667 663 2,001 1,988 Prior service cost amortization 81 80 242 242 Net actuarial loss amortization 86 60 259 181 Pension plans cost $ 231 $ 42 $ 335 $ 120 Other Pension Plans Three months ended September 30 Nine months ended September 30 (In millions) 2009 2008 2009 2008 Expected return on plan assets $ (110) $ (135) $ (321) $ (412) Service cost for benefits earned 84 81 249 243 Interest cost on benefit obligation 117 123 338 374 Prior service cost amortization 3 3 8 9 Net actuarial loss amortization 37 21 93 64 Pension plans cost $ 131 $ 93 $ 367 $ 278 The effect on operations of principal retiree health and life insurance plans follows. Principal Retiree Health and Life Insurance Plans Three months ended September 30 Nine months ended September 30 (In millions) 2009 2008 2009 2008 Expected return on plan assets $ (32) $ (32) $ (96) $ (98) Service cost for benefits earned 177 71 336 214 Interest cost on benefit obligation 177 182 531 568 Prior service cost amortization 168 168 504 504 Net actuarial gain amortization (27) (23) (81) (26) Retiree benefit plans cost $ 463 $ 366 $ 1,194 $ 1,162 |
Note 10 Income Taxes
Note 10 Income Taxes | |
3 Months Ended
Sep. 30, 2009 | |
Notes to Condensed Consolidated Financial Statements (Unaudited) | |
INCOME TAXES | 10. Income TaxesDuring the first quarter of 2009, following the change in our external credit ratings, funding actions taken and review of our operations, liquidity and funding, we determined that undistributed prior-year earnings of non-U.S. subsidiaries of GECS, on which we had previously provided deferred U.S. taxes, would be indefinitely reinvested outside the U.S. This change increased the amount of prior-year earnings indefinitely reinvested outside the U.S. by approximately $2 billion to $77 billion, resulting in an income tax benefit of $700 million in the first quarter of 2009. The balance of unrecognized tax benefits, the amount of related interest and penalties we have provided and what we believe to be the range of reasonably possible changes in the next 12 months, were: At September 30, December 31, (In millions) 2009 2008 Unrecognized tax benefits $ 7,135 $ 6,692 Portion that, if recognized, would reduce tax expense and effective tax rate(a) 4,912 4,453 Accrued interest on unrecognized tax benefits 1,293 1,204 Accrued penalties on unrecognized tax benefits 102 96 Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months 0-1,500 0-1,500 Portion that, if recognized, would reduce tax expense and effective tax rate(a) 0-1,400 0-1,100 (a)Some portion of such reduction might be reported as discontinued operations.The IRS is currently auditing our consolidated income tax returns for 2003-2007. In addition, certain other U.S. tax deficiency issues and refund claims for previous years remain unresolved. It is reasonably possible that the 2003-2005 U.S. audit cycle will be completed during the next 12 months, which could result in a decrease in our balance of unrecognized tax benefits. We believe that there are no other jurisdictions in which the outcome of unresolved issues or claims is likely to be material to our results of operations, financial position or cash flows. We further believe that we have made adequate provision for all income tax uncertainties.GE and GECS file a consolidated U.S. federal income tax return. The GECS provision for current tax expense includes its effect on the consolidated return. The effect of GECS on the consolidated liability is settled in cash as GE tax payments are due. |
Note 11 Shareowners' Equity
Note 11 Shareowners' Equity | |
3 Months Ended
Sep. 30, 2009 | |
Notes to Condensed Consolidated Financial Statements (Unaudited) | |
SHAREOWNERS' EQUITY | 11. Shareowners EquityA summary of increases (decreases) in GE shareowners equity that did not result directly from transactions with shareowners, net of income taxes, follows. Three months ended September 30 Nine months ended September 30 (In millions) 2009 2008 2009 2008 Net earnings attributable to the Company $ 2,494 $ 4,312 $ 8,012 $ 13,688 Investment securities net 1,697 (1,086) 2,615 (2,414) Currency translation adjustments net 1,857 (4,912) 4,342 (3,508) Cash flow hedges net 71 (1,622) 1,476 (1,500) Benefit plans net 180 210 659 924 Total $ 6,299 $ (3,098) $ 17,104 $ 7,190 Changes to noncontrolling interests during the third quarter of 2009 resulted from net earnings ($5 million), dividends ($(152) million), AOCI ($14 million) and other ($20 million). Changes to the individual components of AOCI attributable to noncontrolling interests were insignificant.Changes to noncontrolling interests during the first nine months of 2009 resulted from net earnings ($102 million), dividends ($(444) million), the effects of deconsolidating PTL ($(331) million, including $101 million of AOCI), other AOCI ($10 million) and other ($(4) million). Changes to the individual components of AOCI attributable to noncontrolling interests were insignificant. |
Note 12 GECS Revenues From Serv
Note 12 GECS Revenues From Services | |
3 Months Ended
Sep. 30, 2009 | |
Notes to Condensed Consolidated Financial Statements (Unaudited) | |
GECS REVENUES FROM SERVICES | 12. GECS Revenues from ServicesGECS revenues from services are summarized in the following table. Three months ended September 30 Nine months ended September 30 (In millions) 2009 2008 2009 2008 Interest on loans $ 4,933 $ 7,198 $ 15,113 $ 20,426 Equipment leased to others 2,902 3,967 9,314 11,686 Fees 1,160 1,989 3,419 4,798 Financing leases 795 1,107 2,533 3,456 Real estate investments 410 803 1,128 3,102 Premiums earned by insurance activities 515 554 1,525 1,664 Associated companies 277 560 751 1,676 Investment income(a) 755 531 2,413 2,388 Net securitization gains 449 317 1,169 1,022 Other items(b)(c) 337 826 2,604 3,809 Total $ 12,533 $ 17,852 $ 39,969 $ 54,027 (a)Included net other-than-temporary impairments on investment securities of $161 million and $309 million in the third quarters of 2009 and 2008, respectively, and $484 million and $599 million in the first nine months of 2009 and 2008, respectively. See Note 3.(b)Included a gain on the sale of a limited partnership interest in PTL and a related gain on the remeasurement of the retained investment to fair value totaling $296 million in the first quarter of 2009. See Note 16.(c)Included a gain of $343 million on the remeasurement to fair value of our equity method investment in BAC, following our acquisition of a controlling interest in the second quarter of 2009. See Note 7. |
Note 13 Earnings Per Share Info
Note 13 Earnings Per Share Information | |
3 Months Ended
Sep. 30, 2009 | |
Notes to Condensed Consolidated Financial Statements (Unaudited) | |
EARNINGS PER SHARE INFORMATION | 13. Earnings Per Share Information GEs authorized common stock consists of 13,200,000,000 shares having a par value of $0.06 each. Information related to the calculation of earnings per share follows. Three months ended September 30 2009(a) 2008 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Amounts attributable to the Company: Consolidated Earnings from continuing operations for per-share calculation $ 2,438 $ 2,438 $ 4,478 $ 4,477 Preferred stock dividends declared (75) (75) 0 0 Earnings from continuing operations attributable to common shareowners for per-share calculation $ 2,363 $ 2,363 $ 4,478 $ 4,477 Earnings (loss) from discontinued operations for per-share calculation 40 40 (165) (165) Net earnings attributable to GE common shareowners for per-share calculation 2,403 2,402 4,313 4,312 Average equivalent shares Shares of GE common stock outstanding 10,638 10,638 9,953 9,953 Employee compensation-related shares, including stock options 0 0 17 0 Total average equivalent shares 10,638 10,638 9,970 9,953 Per-share amounts Earnings from continuing operations $ 0.22 $ 0.22 $ 0.45 $ 0.45 Earnings (loss) from discontinued operations 0 0 (0.02) (0.02) Net earnings 0.23 0.23 0.43 0.43 Nine months ended September 30 2009(a) 2008 (In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Amounts attributable to the Company: Consolidated Earnings from continuing operations for per-share calculation $ 8,157 $ 8,156 $ 14,223 $ 14,222 Preferred stock dividends declared (225) (225) 0 0 Earnings from continuing operations attributable to common shareowners for per-share calculation $ 7,932 $ 7,931 $ 14,223 $ 14,222 Loss from discontinued operations for per-share calculation (175) (175) (534) (534) Net earnings attributable to GE common shareowners for per-share calculation 7,757 7,756 13,689 13,688 Average equivalent shares Shares of GE common stock outstanding 10,601 10,601 9,965 9,965 Employee compensation-related shares, including stock options 0 0 24 0 Total average equivalent shares 10,601 10,601 9,989 9,965 Per-share amounts Earnings from continuing operations $ 0.75 $ 0.75 $ 1.42 $ 1.43 Loss from discontinued operations (0.02) (0.02) (0.05) (0.05) Net earnings 0.73 0.73 1.37 1.37 Effective January 1, 2009, our unvested restricted stock unit awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities and, therefore, are included in the computation of earnings per share pursuant to the two-class method. Application of this treatment had an insignificant effect.(a)At September 30, 2009, there were no potential shares included in our diluted EPS calculation because the effect would have been anti-dilutive. Further information about potential common shares is provided in Notes 23 and 24 of our 2008 Form 10-K.Earnings-per-share amounts are comp |
Note 14 Fair Value Measurements
Note 14 Fair Value Measurements | |
3 Months Ended
Sep. 30, 2009 | |
Notes to Condensed Consolidated Financial Statements (Unaudited) | |
FAIR VALUE MEASUREMENTS | 14. Fair Value MeasurementsWe adopted FASB ASC 820 in two steps; effective January 1, 2008, we adopted it for all financial instruments and non-financial instruments accounted for at fair value on a recurring basis and effective January 1, 2009, for all non-financial instruments accounted for at fair value on a non-recurring basis. This guidance establishes a new framework for measuring fair value and expands related disclosures. Broadly, the framework requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. It also establishes a three-level valuation hierarchy based upon observable and non-observable inputs.For financial assets and liabilities, 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. Further, in other instances, we retain independent pricing vendors to assist in valuing certain instruments. The following section describes the valuation methodologies we use to measure different financial instruments at fair value on a recurring basis. There has been no change to the valuation methodologies during 2009.Investments in Debt and Equity SecuritiesWhen 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.When quoted market prices are unobservable, 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 t |
Note 15 Financial Instruments
Note 15 Financial Instruments | |
3 Months Ended
Sep. 30, 2009 | |
Notes to Condensed Consolidated Financial Statements (Unaudited) | |
INTERIM DISCLOSURE ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | 15. Financial InstrumentsThe following table provides information about the assets and liabilities not carried at fair value in our Statement of Financial Position. Consistent with FASB ASC 825, the table excludes financing leases and non-financial assets and liabilities. Apart from certain of our borrowings and certain marketable securities, few of the instruments identified below are actively traded and their fair values must often be determined using financial models. Realization of the fair value of these instruments depends upon market forces beyond our control, including marketplace liquidity. For a description on how we estimate fair value, see Note 29 to the consolidated financial statements in our 2008 Form10K. At September 30, 2009 December 31, 2008 Assets (liabilities) Assets (liabilities) Carrying Carrying Notional amount Estimated Notional amount Estimated (In millions) amount (net) fair value amount (net) fair value GE Assets Investments and notes receivable $ (a) $ 443 $ 434 $ (a) $ 554 $ 511 Liabilities Borrowings (a) (12,247) (12,938) (a) (12,202) (12,267) GECS Assets Loans (a) 291,774 273,017 (a) 305,376 292,797 Other commercial mortgages (a) 1,172 1,194 (a) 1,501 1,427 Loans held for sale (a) 1,864 1,898 (a) 3,640 3,670 Other financial instruments (b) (a) 2,229 2,351 (a) 2,637 2,810 Liabilities Borrowings(c)(d) (a) (508,353) (509,465) (a) (514,601) (495,541) Investment contract benefits (a) (4,003) (4,556) (a) (4,212) (4,536) Guaranteed investment contracts (a) (9,241) (9,156) (a) (10,828) (10,677) Insurance credit life(e) 1,481 (74) (49) 1,165 (44) (31) (a)These financial instruments do not have notional amounts.(b)Principally cost method investments.(c)See Note 8.(d)Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at September 30, 2009 and December 31, 2008 would have been reduced by $3,367 million and $3,776 million, respectively.(e)Net of reinsurance of $2,300 million and $3,103 million at September 30, 2009 and December 31, 2008, respectively.Loan Commitments Notional amount at September 30, December 31, (in millions) 2009 2008 Ordinary course of business lending commitments (a)(b) $ 7,370 $ 8,507 Unused revolving credit lines(c) Commercial 30,259 26,300 Consumer principally credit cards 245,764 252,867 (a)Excluded investment commitments of $2,493 million and $3,501 million as of September 30, 2009 and December 31, 2008, respectively.(b)Included a $1,004 million and $1,067 million commitment as of September 30, 2009 and December 31, 2008, respectively, associated with a secured financing arrangement that can increase to a maximum of $4,943 million based on the asset volume under the arrangement.(c)Excluded inventory financing arrangement, which may be withdrawn at our option, of $13,234 million and $14,503 million as of September 30, 2009 and December 31, 2008, |
DERIVATES AND HEDGING | Derivatives and HedgingOn January 1, 2009, in accordance with FASB ASC 815, we began disclosing additional qualitative and quantitative information about our derivative and hedging activities. The following disclosures should be read in the context of our existing disclosure in Note 29 to the consolidated financial statements in our 2008 Form 10-K.As a matter of policy, we use derivatives for risk management purposes. We do not use derivatives for speculative purposes. A key risk management objective for our financial services businesses is to mitigate interest rate and currency risk by seeking to ensure that the characteristics of the debt match the assets they are funding. If the form (fixed versus floating) and currency denomination of the debt we issue do not match the related assets, we typically execute derivatives to adjust the nature and tenor of debt funding to meet this objective. The determination of whether a derivative is used to achieve this objective depends on a number of factors, including customer needs for specific types of financing, and market factors affecting the type of debt we can issue.Of the outstanding notional amount of $353,000 million, approximately 87%, or $305,000 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 derivatives activity primarily relates to hedging against adverse changes in currency exchange rates and commodity prices related to anticipated sales and purchases. These activities are designated as hedges when practicable. When it is not possible to apply hedge accounting, or when the derivative and the hedged item are both recorded in earnings currently, the derivatives are accounted for as 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 currently in earnings for both the derivative and the underlying, the economic hedge does not require hedge accounting. The following table provides information about the fair value of our derivatives, by contract type, separating those accounted for as hedges and those that are not. At September 30, 2009 Fair value (In millions) Assets Liabilities Derivatives accounted for as hedges Interest rate contracts $ 5,535 $ 3,690 Currency exchange contracts 4,170 3,489 Other contracts 31 10 9,736 7,189 Derivatives not accounted for as hedges Interest rate contracts 1,125 1,022 Currency exchange contracts 1,693 856 Other contracts 426 107 3,244 1,985 Netting adjustment(a) (4,758) (4,784) Total $ 8,222 $ 4,390 Derivatives are classified in the captions All other assets and All other liabilities in our financial statements.(a)The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts included fair value adjustments related to our own and counterparty credit risk. At September 30, 2009 and December 3 |
Note 16 Off-Balance Sheet Arran
Note 16 Off-Balance Sheet Arrangements | |
3 Months Ended
Sep. 30, 2009 | |
Notes to Condensed Consolidated Financial Statements (Unaudited) | |
OFF-BALANCE SHEET ARRANGEMENTS | 16. Off-Balance Sheet Arrangements We securitize financial assets and arrange other forms of asset-backed financing in the ordinary course of business to improve shareowner returns. The securitization transactions we engage in are similar to those used by many financial institutions. Beyond improving returns, these securitization transactions serve as funding sources for a variety of diversified lending and securities transactions. Historically, we have used both GE-supported and third-party Variable Interest Entities (VIEs) to execute off-balance sheet securitization transactions funded in the commercial paper and term markets. The largest single category of VIEs that we are involved with are Qualifying Special Purpose Entities (QSPEs), which meet specific characteristics defined in U.S. GAAP that exclude them from the scope of consolidation standards. Investors in these entities only have recourse to the assets owned by the entity and not to our general credit, unless noted below. We did not provide non-contractual support to any consolidated VIE, unconsolidated VIE or QSPE in the nine months ended September 30, 2009. We do not have implicit support arrangements with any VIE or QSPE.Variable Interest EntitiesWhen evaluating whether we are the primary beneficiary of a VIE, and must therefore consolidate the entity, we perform a qualitative analysis that considers the design of the VIE, the nature of our involvement and the variable interests held by other parties. If that evaluation is inconclusive as to which party absorbs a majority of the entitys expected losses or residual returns, a quantitative analysis is performed to determine who is the primary beneficiary. Consolidated Variable Interest EntitiesFor additional information about our consolidated VIEs, see Note 30 to the consolidated financial statements in our 2008 Form 10-K. Consolidated VIEs at September 30, 2009 and December 31, 2008 follow: At September 30, 2009 December 31, 2008 (In millions) Assets Liabilities Assets Liabilities Consolidated, liquidating securitization entities(a) $ 2,790 $ 2,969 $ 4,000 $ 3,868 Trinity(b) 7,657 9,447 9,192 11,623 Penske Truck Leasing Co., L.P. (PTL)(c) 0 0 7,444 1,339 Other(d) 5,471 3,062 6,062 4,432 $ 15,918 $ 15,478 $ 26,698 $ 21,262 (a)If the short-term credit rating of GE Capital or these entities were reduced below A1/P1, we could be required to provide substitute liquidity for those entities or provide funds to retire the outstanding commercial paper. The maximum net amount that we could be required to provide in the event of such a downgrade is determined by contract and totaled $2,900 million at September 30, 2009. The borrowings of these entities are reflected in our Statement of Financial Position.(b)If the long-term credit rating of GE Capital were to fall below AA-/Aa3 or its short-term credit rating were to fall below A-1+/P-1, GE Capital could be required to provide approximately $2,917 million to such entities as of September 30, 2009 pursuant to letters of credit issued by GE Capital. To the extent that the entities liabilities exceed the ultimate value of the proceeds from t |
Note 17 Intercompany Transactio
Note 17 Intercompany Transactions | |
3 Months Ended
Sep. 30, 2009 | |
Notes to Condensed Consolidated Financial Statements (Unaudited) | |
INTERCOMPANY TRANSACTIONS | 17. Intercompany TransactionsEffects of transactions between related companies are eliminated and consist primarily of GECS dividends to GE or capital contributions from GE to GECS; GE customer receivables sold to GECS; GECS services for trade receivables management and material procurement; buildings and equipment (including automobiles) leased by GE from GECS; information technology (IT) and other services sold to GECS by GE; aircraft engines manufactured by GE that are installed on aircraft purchased by GECS from third-party producers for lease to others; medical equipment manufactured by GE that is leased by GECS to others; and various investments, loans and allocations of GE corporate overhead costs. These intercompany transactions are reported in the GE and GECS columns of our financial statements (and include customer receivables sold from GE to GECS), but are eliminated in deriving our consolidated financial statements. The effects of these eliminations on our consolidated cash flows from operating, investing and financing activities follow. Nine months ended September 30 (In millions) 2009 2008 Operating Sum of GE and GECS cash from (used for) operating activities continuing operations $ 13,434 $ 31,779 Elimination of GECS dividend to GE 0 (2,291) Net increase in GE customer receivables sold to GECS (372) (1,255) Other reclassifications and eliminations 951 (429) Consolidated cash from (used for) operating activities continuing operations $ 14,013 $ 27,804 Investing Sum of GE and GECS cash from (used for) investing activities continuing operations $ 25,809 $ (52,947) Net increase in GE customer receivables sold to GECS 372 1,255 Capital contribution from GE to GECS 9,500 0 Other reclassifications and eliminations (939) 174 Consolidated cash from (used for) investing activities continuing operations $ 34,742 $ (51,518) Financing Sum of GE and GECS cash from (used for) financing activities continuing operations $ (26,714) $ 21,600 Elimination of short-term intercompany borrowings(a) 824 370 Elimination of GECS dividend to GE 0 2,291 Capital contribution from GE to GECS (9,500) 0 Other reclassifications and eliminations (178) 23 Consolidated cash from (used for) financing activities continuing operations $ (35,568) $ 24,284 (a)Includes GE investment in GECS short-term borrowings, such as commercial paper.In the GE and GECS columns of our Statement of Cash Flows for the year ended December 31, 2008, we properly reported a $5,500 million capital contribution from GE to GECS as an investing use of cash by GE (included in the caption All other investing activities) and a financing source of cash to GECS (included in the caption All other financing activities). This intercompany transaction was not eliminated in deriving our consolidated cash flows. As a result, our consolidated cash used for investing activities and our consolidated cash from financing activities were both overstated by the amount of the capital contribution. This item had no effect on our consolidated cash from operating activities or total consol |