FORM 10-Q
|
(Mark One)
|
|||||
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
|
||||
THE SECURITIES EXCHANGE ACT OF 1934
|
|||||
For the quarterly period ended September 30, 2012
|
|||||
OR
|
|||||
¨
|
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 001-06461
_____________________________
|
|||||
GENERAL ELECTRIC CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
|
Delaware
|
13-1500700
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
901 Main Avenue, Norwalk, Connecticut
|
06851-1168
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer ¨
|
Accelerated filer ¨
|
Non-accelerated filer þ
|
Smaller reporting company ¨
|
Part I – Financial Information
|
Page
|
||
Item 1.
|
Financial Statements
|
||
Condensed Statement of Earnings
|
3
|
||
Condensed Statement of Comprehensive Income
|
4
|
||
Condensed Statement of Changes in Shareowners’ Equity
|
4
|
||
Condensed Statement of Financial Position
|
5
|
||
Condensed Statement of Cash Flows
|
6
|
||
Summary of Operating Segments
|
7
|
||
Notes to Condensed Financial Statements (Unaudited)
|
8
|
||
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
50
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
72
|
|
Item 4.
|
Controls and Procedures
|
72
|
|
Part II – Other Information
|
|||
Item 1.
|
Legal Proceedings
|
73
|
|
Item 6.
|
Exhibits
|
74
|
|
Signatures
|
75
|
||
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Revenues
|
|||||||||||
Revenues from services (a)
|
$
|
11,360
|
$
|
12,051
|
$
|
34,268
|
$
|
37,561
|
|||
Other-than-temporary impairment on investment securities:
|
|||||||||||
Total other-than-temporary impairment on investment securities
|
(25)
|
(86)
|
(90)
|
(270)
|
|||||||
Less: Portion of other-than-temporary impairment recognized in
|
|||||||||||
accumulated other comprehensive income
|
–
|
18
|
1
|
84
|
|||||||
Net other-than-temporary impairment on investment securities
|
|||||||||||
recognized in earnings
|
(25)
|
(68)
|
(89)
|
(186)
|
|||||||
Revenues from services (Note 9)
|
11,335
|
11,983
|
34,179
|
37,375
|
|||||||
Sales of goods
|
34
|
32
|
90
|
116
|
|||||||
Total revenues
|
11,369
|
12,015
|
34,269
|
37,491
|
|||||||
Costs and expenses
|
|||||||||||
Interest
|
2,805
|
3,556
|
8,989
|
10,738
|
|||||||
Operating and administrative
|
3,072
|
3,260
|
9,063
|
10,186
|
|||||||
Cost of goods sold
|
27
|
30
|
75
|
108
|
|||||||
Investment contracts, insurance losses and insurance annuity benefits
|
798
|
755
|
2,271
|
2,314
|
|||||||
Provision for losses on financing receivables
|
1,122
|
961
|
2,728
|
2,893
|
|||||||
Depreciation and amortization
|
1,768
|
1,837
|
5,137
|
5,405
|
|||||||
Total costs and expenses
|
9,592
|
10,399
|
28,263
|
31,644
|
|||||||
Earnings (loss) from continuing operations before income taxes
|
1,777
|
1,616
|
6,006
|
5,847
|
|||||||
Benefit (provision) for income taxes
|
(78)
|
(59)
|
(367)
|
(834)
|
|||||||
Earnings from continuing operations
|
1,699
|
1,557
|
5,639
|
5,013
|
|||||||
Earnings (loss) from discontinued operations, net of taxes (Note 2)
|
(111)
|
(64)
|
(881)
|
166
|
|||||||
Net earnings (loss)
|
1,588
|
1,493
|
4,758
|
5,179
|
|||||||
Less net earnings (loss) attributable to noncontrolling interests
|
20
|
38
|
46
|
89
|
|||||||
Net earnings (loss) attributable to GECC
|
$
|
1,568
|
$
|
1,455
|
$
|
4,712
|
$
|
5,090
|
|||
Amounts attributable to GECC
|
|||||||||||
Earnings from continuing operations
|
$
|
1,679
|
$
|
1,519
|
$
|
5,593
|
$
|
4,924
|
|||
Earnings (loss) from discontinued operations, net of taxes
|
(111)
|
(64)
|
(881)
|
166
|
|||||||
Net earnings (loss) attributable to GECC
|
$
|
1,568
|
$
|
1,455
|
$
|
4,712
|
$
|
5,090
|
|||
(a)
|
Excluding net other-than-temporary impairment on investment securities.
|
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Net earnings
|
$
|
1,588
|
$
|
1,493
|
$
|
4,758
|
$
|
5,179
|
|||
Less net earnings (loss) attributable to noncontrolling interests
|
20
|
38
|
46
|
89
|
|||||||
Net earnings attributable to GECC
|
$
|
1,568
|
$
|
1,455
|
$
|
4,712
|
$
|
5,090
|
|||
Other comprehensive income (loss), net of tax
|
|||||||||||
Investment securities
|
$
|
125
|
$
|
249
|
$
|
635
|
$
|
451
|
|||
Currency translation adjustments
|
526
|
(810)
|
252
|
1,730
|
|||||||
Cash flow hedges
|
29
|
(48)
|
141
|
(310)
|
|||||||
Benefit plans
|
(11)
|
28
|
(16)
|
27
|
|||||||
Other comprehensive income (loss), net of tax
|
669
|
(581)
|
1,012
|
1,898
|
|||||||
Less other comprehensive income (loss) attributable to
|
|||||||||||
noncontrolling interests
|
(2)
|
22
|
(1)
|
13
|
|||||||
Other comprehensive income (loss) attributable to GECC
|
$
|
671
|
$
|
(603)
|
$
|
1,013
|
$
|
1,885
|
|||
Comprehensive income, net of tax
|
2,257
|
912
|
5,770
|
7,077
|
|||||||
Less comprehensive income attributable to noncontrolling interests
|
18
|
60
|
45
|
102
|
|||||||
Comprehensive income attributable to GECC
|
$
|
2,239
|
$
|
852
|
$
|
5,725
|
$
|
6,975
|
|||
Nine months ended September 30,
|
|||||||||||
(In millions)
|
2012
|
2011
|
|||||||||
Beginning balance
|
$
|
77,110
|
$
|
68,984
|
|||||||
Dividends and other transactions with shareowners
|
(1,486)
|
–
|
|||||||||
Other comprehensive income (loss), net of tax
|
1,013
|
1,885
|
|||||||||
Increases from net earnings attributable to the Company
|
4,712
|
5,090
|
|||||||||
Ending balance
|
81,349
|
75,959
|
|||||||||
Noncontrolling interests
|
711
|
1,205
|
|||||||||
Total equity
|
$
|
82,060
|
$
|
77,164
|
September 30,
|
December 31,
|
||||||||||
(In millions, except share information)
|
2012
|
2011
|
|||||||||
(Unaudited)
|
|||||||||||
Assets
|
|||||||||||
Cash and equivalents
|
$
|
77,666
|
$
|
76,702
|
|||||||
Investment securities (Note 3)
|
48,695
|
47,359
|
|||||||||
Inventories
|
73
|
51
|
|||||||||
Financing receivables – net (Notes 4 and 12)
|
271,623
|
288,847
|
|||||||||
Other receivables
|
13,772
|
13,390
|
|||||||||
Property, plant and equipment, less accumulated amortization of $23,886
|
|||||||||||
and $23,615
|
52,288
|
51,419
|
|||||||||
Goodwill (Note 5)
|
27,338
|
27,230
|
|||||||||
Other intangible assets – net (Note 5)
|
1,361
|
1,546
|
|||||||||
Other assets
|
64,887
|
75,612
|
|||||||||
Assets of businesses held for sale (Note 2)
|
2,700
|
711
|
|||||||||
Assets of discontinued operations (Note 2)
|
1,199
|
1,669
|
|||||||||
Total assets(a)
|
$
|
561,602
|
$
|
584,536
|
|||||||
Liabilities and equity
|
|||||||||||
Short-term borrowings (Note 6)
|
$
|
113,587
|
$
|
136,333
|
|||||||
Accounts payable
|
7,007
|
7,239
|
|||||||||
Non-recourse borrowings of consolidated securitization entities (Note 6)
|
31,171
|
29,258
|
|||||||||
Bank deposits (Note 6)
|
45,196
|
43,115
|
|||||||||
Long-term borrowings (Note 6)
|
230,402
|
234,391
|
|||||||||
Investment contracts, insurance liabilities and insurance annuity benefits
|
28,806
|
30,198
|
|||||||||
Other liabilities
|
15,445
|
17,334
|
|||||||||
Deferred income taxes
|
5,945
|
7,052
|
|||||||||
Liabilities of businesses held for sale (Note 2)
|
206
|
345
|
|||||||||
Liabilities of discontinued operations (Note 2)
|
1,777
|
1,471
|
|||||||||
Total liabilities(a)
|
479,542
|
506,736
|
|||||||||
Preferred stock, $0.01 par value (750,000 shares authorized at both September 30, 2012
|
|||||||||||
and December 31, 2011 and 40,000 shares and 0 shares issued and outstanding
|
–
|
–
|
|||||||||
at September 30, 2012 and December 31, 2011, respectively)
|
|||||||||||
Common stock, $14 par value (4,166,000 shares authorized at
|
|||||||||||
both September 30, 2012 and December 31, 2011 and 1,000 shares
|
|||||||||||
issued and outstanding at both September 30, 2012 and December 31, 2011)
|
– | – | |||||||||
Accumulated other comprehensive income – net(b)
|
|||||||||||
Investment securities
|
602
|
(33)
|
|||||||||
Currency translation adjustments
|
(145)
|
(399)
|
|||||||||
Cash flow hedges
|
(961)
|
(1,101)
|
|||||||||
Benefit plans
|
(579)
|
(563)
|
|||||||||
Additional paid-in capital
|
31,589
|
27,628
|
|||||||||
Retained earnings
|
50,843
|
51,578
|
|||||||||
Total GECC shareowners' equity
|
81,349
|
77,110
|
|||||||||
Noncontrolling interests(c)(Note 8)
|
711
|
690
|
|||||||||
Total equity
|
82,060
|
77,800
|
|||||||||
Total liabilities and equity
|
$
|
561,602
|
$
|
584,536
|
|||||||
|
(a)
|
Our consolidated assets at September 30, 2012 include total assets of $47,623 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 $40,422 million and investment securities of $4,797 million. Our consolidated liabilities at September 30, 2012 include liabilities of certain VIEs for which the VIE creditors do not have recourse to GECC. These liabilities include non-recourse borrowings of consolidated securitization entities (CSEs) of $30,270 million. See Note 13.
|
(b)
|
The sum of accumulated other comprehensive income − net was $(1,083) million and $(2,096) million at September 30, 2012 and December 31, 2011, respectively.
|
(c)
|
Included accumulated other comprehensive income − net attributable to noncontrolling interests of $(140) million and $(141) million at September 30, 2012 and December 31, 2011, respectively.
|
Nine months ended September 30,
|
|||||||||||
(In millions)
|
2012
|
2011
|
|||||||||
Cash flows – operating activities
|
|||||||||||
Net earnings
|
$
|
4,758
|
$
|
5,179
|
|||||||
Less net earnings (loss) attributable to noncontrolling interests
|
46
|
89
|
|||||||||
Net earnings attributable to GECC
|
4,712
|
5,090
|
|||||||||
(Earnings) loss from discontinued operations
|
881
|
(166)
|
|||||||||
Adjustments to reconcile net earnings attributable to GECC
|
|||||||||||
to cash provided from operating activities
|
|||||||||||
Depreciation and amortization of property, plant and equipment
|
5,137
|
5,405
|
|||||||||
Increase (decrease) in accounts payable
|
(287)
|
1,103
|
|||||||||
Provision for losses on financing receivables
|
2,728
|
2,893
|
|||||||||
All other operating activities
|
1,841
|
2,328
|
|||||||||
Cash from (used for) operating activities – continuing operations
|
15,012
|
16,653
|
|||||||||
Cash from (used for) operating activities – discontinued operations
|
20
|
821
|
|||||||||
Cash from (used for) operating activities
|
15,032
|
17,474
|
|||||||||
Cash flows – investing activities
|
|||||||||||
Additions to property, plant and equipment
|
(8,096)
|
(7,149)
|
|||||||||
Dispositions of property, plant and equipment
|
4,848
|
4,637
|
|||||||||
Increase in loans to customers
|
(217,198)
|
(234,522)
|
|||||||||
Principal collections from customers – loans
|
227,408
|
249,413
|
|||||||||
Investment in equipment for financing leases
|
(6,585)
|
(6,920)
|
|||||||||
Principal collections from customers – financing leases
|
9,150
|
9,797
|
|||||||||
Net change in credit card receivables
|
(3,254)
|
746
|
|||||||||
Proceeds from sale of discontinued operations
|
227
|
8,951
|
|||||||||
Proceeds from principal business dispositions
|
244
|
2,117
|
|||||||||
Payments for principal businesses purchased
|
–
|
(50)
|
|||||||||
All other investing activities
|
9,383
|
4,229
|
|||||||||
Cash from (used for) investing activities – continuing operations
|
16,127
|
31,249
|
|||||||||
Cash from (used for) investing activities – discontinued operations
|
(30)
|
(789)
|
|||||||||
Cash from (used for) investing activities
|
16,097
|
30,460
|
|||||||||
Cash flows – financing activities
|
|||||||||||
Net increase (decrease) in borrowings (maturities of 90 days or less)
|
(1,209)
|
(1,893)
|
|||||||||
Net increase (decrease) in bank deposits
|
1,195
|
3,746
|
|||||||||
Newly issued debt (maturities longer than 90 days)
|
|||||||||||
Short-term (91 to 365 days)
|
59
|
10
|
|||||||||
Long-term (longer than one year)
|
43,156
|
33,798
|
|||||||||
Non-recourse, leveraged lease
|
–
|
–
|
|||||||||
Repayments and other debt reductions (maturities longer than 90 days)
|
|||||||||||
Short-term (91 to 365 days)
|
(66,837)
|
(58,005)
|
|||||||||
Long-term (longer than one year)
|
(3,162)
|
(1,603)
|
|||||||||
Non-recourse, leveraged lease
|
(389)
|
(640)
|
|||||||||
Proceeds from issuance of preferred stock
|
3,960
|
–
|
|||||||||
Dividends paid to shareowner
|
(5,446)
|
–
|
|||||||||
All other financing activities
|
(2,729)
|
(1,336)
|
|||||||||
Cash from (used for) financing activities – continuing operations
|
(31,402)
|
(25,923)
|
|||||||||
Cash from (used for) financing activities – discontinued operations
|
–
|
(42)
|
|||||||||
Cash from (used for) financing activities
|
(31,402)
|
(25,965)
|
|||||||||
Effect of currency exchange rate changes on cash and equivalents
|
1,227
|
1,042
|
|||||||||
Increase (decrease) in cash and equivalents
|
954
|
23,011
|
|||||||||
Cash and equivalents at beginning of year
|
76,823
|
60,398
|
|||||||||
Cash and equivalents at September 30
|
77,777
|
83,409
|
|||||||||
Less cash and equivalents of discontinued operations at September 30
|
111
|
131
|
|||||||||
Cash and equivalents of continuing operations at September 30
|
$
|
77,666
|
$
|
83,278
|
|||||||
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(Unaudited)
|
(Unaudited)
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Revenues
|
|||||||||||
CLL
|
$
|
4,124
|
$
|
4,512
|
$
|
12,707
|
$
|
13,786
|
|||
Consumer
|
3,911
|
4,028
|
11,600
|
13,023
|
|||||||
Real Estate
|
948
|
935
|
2,660
|
2,834
|
|||||||
Energy Financial Services
|
401
|
221
|
1,086
|
931
|
|||||||
GECAS
|
1,249
|
1,265
|
3,897
|
3,917
|
|||||||
Total segment revenues
|
10,633
|
10,961
|
31,950
|
34,491
|
|||||||
Corporate items and eliminations
|
736
|
1,054
|
2,319
|
3,000
|
|||||||
Total revenues in GECC
|
$
|
11,369
|
$
|
12,015
|
$
|
34,269
|
$
|
37,491
|
|||
Segment profit
|
|||||||||||
CLL
|
$
|
568
|
$
|
688
|
$
|
1,879
|
$
|
1,943
|
|||
Consumer
|
749
|
803
|
2,485
|
3,086
|
|||||||
Real Estate
|
217
|
(82)
|
494
|
(775)
|
|||||||
Energy Financial Services
|
132
|
79
|
325
|
330
|
|||||||
GECAS
|
251
|
208
|
877
|
835
|
|||||||
Total segment profit
|
1,917
|
1,696
|
6,060
|
5,419
|
|||||||
Corporate items and eliminations
|
(238)
|
(177)
|
(467)
|
(495)
|
|||||||
Earnings from continuing operations
|
|||||||||||
attributable to GECC
|
1,679
|
1,519
|
5,593
|
4,924
|
|||||||
Earnings (loss) from discontinued operations,
|
|||||||||||
net of taxes, attributable to GECC
|
(111)
|
(64)
|
(881)
|
166
|
|||||||
Total net earnings attributable to GECC
|
$
|
1,568
|
$
|
1,455
|
$
|
4,712
|
$
|
5,090
|
|||
September 30,
|
December 31,
|
||||||||||
(In millions)
|
2012
|
2011
|
|||||||||
|
|||||||||||
Assets
|
|
||||||||||
Cash and equivalents
|
$
|
99
|
$
|
149
|
|||||||
Financing receivables – net
|
2,406
|
412
|
|||||||||
Property, plant and equipment – net
|
|
38
|
|
|
81
|
||||||
All other
|
157
|
69
|
|||||||||
Assets of businesses held for sale
|
$
|
2,700
|
$
|
711
|
|||||||
|
|
||||||||||
Liabilities
|
|
|
|||||||||
Short-term borrowings
|
$
|
186
|
$
|
252
|
|||||||
All other
|
|
20
|
|
|
93
|
||||||
Liabilities of businesses held for sale
|
$
|
206
|
|
$
|
345
|
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Operations
|
|||||||||||
Total revenues (loss)
|
$
|
(112)
|
$
|
17
|
$
|
(462)
|
$
|
348
|
|||
Earnings (loss) from discontinued operations before income taxes
|
$
|
(141)
|
$
|
(74)
|
$
|
(579)
|
$
|
(112)
|
|||
Benefit (provision) for income taxes
|
28
|
22
|
155
|
55
|
|||||||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(113)
|
$
|
(52)
|
$
|
(424)
|
$
|
(57)
|
|||
Disposal
|
|||||||||||
Gain (loss) on disposal before income taxes
|
$
|
(4)
|
$
|
(45)
|
$
|
(506)
|
$
|
(86)
|
|||
Benefit (provision) for income taxes
|
6
|
33
|
49
|
309
|
|||||||
Gain (loss) on disposal, net of taxes
|
$
|
2
|
$
|
(12)
|
$
|
(457)
|
$
|
223
|
|||
Earnings (loss) from discontinued operations, net of taxes
|
$
|
(111)
|
$
|
(64)
|
$
|
(881)
|
$
|
166
|
|||
September 30,
|
December 31,
|
||||||||||
(In millions)
|
2012
|
2011
|
|||||||||
Assets
|
|||||||||||
Cash and equivalents
|
$
|
111
|
$
|
121
|
|||||||
Financing receivables - net
|
6
|
521
|
|||||||||
Other
|
1,082
|
1,027
|
|||||||||
Assets of discontinued operations
|
$
|
1,199
|
$
|
1,669
|
|||||||
Liabilities
|
|||||||||||
Deferred income taxes
|
$
|
360
|
$
|
207
|
|||||||
Other
|
1,417
|
1,264
|
|||||||||
Liabilities of discontinued operations
|
$
|
1,777
|
$
|
1,471
|
|||||||
September 30, 2012
|
December 31, 2011
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
Gross
|
||||||||||||||||||||
Amortized
|
unrealized
|
unrealized
|
Estimated
|
Amortized
|
unrealized
|
unrealized
|
Estimated
|
||||||||||||||||
(In millions)
|
cost
|
gains
|
losses
|
fair value
|
cost
|
gains
|
losses
|
fair value
|
|||||||||||||||
Debt
|
|||||||||||||||||||||||
U.S. corporate
|
$
|
20,264
|
$
|
4,242
|
$
|
(327)
|
$
|
24,179
|
$
|
20,748
|
$
|
3,432
|
$
|
(410)
|
$
|
23,770
|
|||||||
State and municipal
|
4,032
|
579
|
(120)
|
4,491
|
3,027
|
350
|
(143)
|
3,234
|
|||||||||||||||
Residential mortgage-backed(a)
|
2,360
|
205
|
(141)
|
2,424
|
2,711
|
184
|
(286)
|
2,609
|
|||||||||||||||
Commercial mortgage-backed
|
2,975
|
230
|
(126)
|
3,079
|
2,913
|
162
|
(247)
|
2,828
|
|||||||||||||||
Asset-backed
|
5,588
|
68
|
(111)
|
5,545
|
5,102
|
32
|
(164)
|
4,970
|
|||||||||||||||
Corporate – non-U.S.
|
2,550
|
163
|
(134)
|
2,579
|
2,414
|
126
|
(207)
|
2,333
|
|||||||||||||||
Government – non-U.S.
|
1,812
|
149
|
(4)
|
1,957
|
2,488
|
129
|
(86)
|
2,531
|
|||||||||||||||
U.S. government and
|
|||||||||||||||||||||||
federal agency
|
3,480
|
96
|
–
|
3,576
|
3,974
|
84
|
–
|
4,058
|
|||||||||||||||
Retained interests
|
27
|
2
|
–
|
29
|
25
|
10
|
–
|
35
|
|||||||||||||||
Equity
|
|||||||||||||||||||||||
Available-for-sale
|
480
|
110
|
(17)
|
573
|
713
|
75
|
(38)
|
750
|
|||||||||||||||
Trading
|
263
|
–
|
–
|
263
|
241
|
–
|
–
|
241
|
|||||||||||||||
Total
|
$
|
43,831
|
$
|
5,844
|
$
|
(980)
|
$
|
48,695
|
$
|
44,356
|
$
|
4,584
|
$
|
(1,581)
|
$
|
47,359
|
|||||||
(a)
|
Substantially collateralized by U.S. mortgages. Of our total residential mortgage-backed securities (RMBS) portfolio at September 30, 2012, $1,529 million relates to securities issued by government sponsored entities and $895 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.
|
In loss position for
|
||||||||||||
Less than 12 months
|
12 months or more
|
|||||||||||
|
Gross
|
|
Gross
|
|||||||||
Estimated
|
unrealized
|
Estimated
|
unrealized
|
|||||||||
(In millions)
|
fair value
|
losses
|
(a)
|
fair value
|
losses
|
(a)
|
||||||
September 30, 2012
|
||||||||||||
Debt
|
||||||||||||
U.S. corporate
|
$
|
266
|
$
|
(11)
|
$
|
942
|
$
|
(316)
|
||||
State and municipal
|
81
|
(1)
|
316
|
(119)
|
||||||||
Residential mortgage-backed
|
18
|
–
|
709
|
(141)
|
||||||||
Commercial mortgage-backed
|
56
|
(1)
|
1,006
|
(125)
|
||||||||
Asset-backed
|
9
|
(2)
|
746
|
(109)
|
||||||||
Corporate – non-U.S.
|
138
|
(10)
|
622
|
(124)
|
||||||||
Government – non-U.S.
|
142
|
(1)
|
94
|
(3)
|
||||||||
U.S. government and federal agency
|
–
|
–
|
–
|
–
|
||||||||
Retained interests
|
2
|
–
|
–
|
–
|
||||||||
Equity
|
57
|
(16)
|
7
|
(1)
|
||||||||
Total
|
$
|
769
|
$
|
(42)
|
$
|
4,442
|
$
|
(938)
|
||||
December 31, 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)
|
(In millions)
|
Amortized
|
Estimated
|
|||||||||
cost
|
fair value
|
||||||||||
Due in
|
|||||||||||
2012
|
$
|
2,220
|
$
|
2,245
|
|||||||
2013-2016
|
7,399
|
7,391
|
|||||||||
2017-2021
|
4,752
|
5,270
|
|||||||||
2022 and later
|
17,761
|
21,870
|
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
|||||||
Gains
|
$
|
26
|
$
|
28
|
$
|
85
|
$
|
189
|
|||
Losses, including impairments
|
(55)
|
(70)
|
(159)
|
(197)
|
|||||||
Net
|
$
|
(29)
|
$
|
(42)
|
$
|
(74)
|
$
|
(8)
|
|||
September 30,
|
December 31,
|
||||||||||
(In millions)
|
2012
|
2011
|
|||||||||
Loans, net of deferred income(a)
|
$
|
242,729
|
$
|
256,895
|
|||||||
Investment in financing leases, net of deferred income
|
34,274
|
38,142
|
|||||||||
277,003
|
295,037
|
||||||||||
Less allowance for losses
|
(5,380)
|
(6,190)
|
|||||||||
Financing receivables – net(b)
|
$
|
271,623
|
$
|
288,847
|
|||||||
(a)
|
Deferred income was $2,221 million and $2,329 million at September 30, 2012 and December 31, 2011, respectively.
|
(b)
|
Financing receivables at September 30, 2012 and December 31, 2011 included $845 million and $1,062 million, respectively, of loans that were acquired in a transfer but have been subject to credit deterioration since origination per ASC 310, Receivables.
|
September 30,
|
December 31,
|
||||||||||
(In millions)
|
2012
|
2011
|
|||||||||
Commercial
|
|||||||||||
CLL
|
|||||||||||
Americas
|
$
|
74,488
|
$
|
80,505
|
|||||||
Europe
|
34,916
|
36,899
|
|||||||||
Asia
|
11,597
|
11,635
|
|||||||||
Other
|
659
|
436
|
|||||||||
Total CLL
|
121,660
|
129,475
|
|||||||||
Energy Financial Services
|
4,989
|
5,912
|
|||||||||
GECAS
|
11,628
|
11,901
|
|||||||||
Other
|
537
|
1,282
|
|||||||||
Total Commercial financing receivables
|
138,814
|
148,570
|
|||||||||
Real Estate
|
|||||||||||
Debt
|
21,225
|
24,501
|
|||||||||
Business Properties
|
5,069
|
8,248
|
|||||||||
Total Real Estate financing receivables
|
26,294
|
32,749
|
|||||||||
Consumer
|
|||||||||||
Non-U.S. residential mortgages
|
33,855
|
35,550
|
|||||||||
Non-U.S. installment and revolving credit
|
18,504
|
18,544
|
|||||||||
U.S. installment and revolving credit
|
46,939
|
46,689
|
|||||||||
Non-U.S. auto
|
4,601
|
5,691
|
|||||||||
Other
|
7,996
|
7,244
|
|||||||||
Total Consumer financing receivables
|
111,895
|
113,718
|
|||||||||
Total financing receivables
|
277,003
|
295,037
|
|||||||||
Less allowance for losses
|
(5,380)
|
(6,190)
|
|||||||||
Total financing receivables – net
|
$
|
271,623
|
$
|
288,847
|
|||||||
Balance at
|
Provision
|
Balance at
|
|||||||||||||||
January 1,
|
charged to
|
Gross
|
September 30,
|
||||||||||||||
(In millions)
|
2012
|
operations
|
Other
|
(a)
|
write-offs
|
(b)
|
Recoveries
|
(b)
|
2012
|
||||||||
Commercial
|
|||||||||||||||||
CLL
|
|||||||||||||||||
Americas
|
$
|
889
|
$
|
67
|
$
|
(43)
|
$
|
(423)
|
$
|
77
|
$
|
567
|
|||||
Europe
|
400
|
271
|
(3)
|
(142)
|
48
|
574
|
|||||||||||
Asia
|
157
|
13
|
(1)
|
(117)
|
20
|
72
|
|||||||||||
Other
|
4
|
9
|
(1)
|
(10)
|
–
|
2
|
|||||||||||
Total CLL
|
1,450
|
360
|
(48)
|
(692)
|
145
|
1,215
|
|||||||||||
Energy Financial Services
|
26
|
8
|
–
|
(24)
|
3
|
13
|
|||||||||||
GECAS
|
17
|
7
|
(1)
|
(11)
|
–
|
12
|
|||||||||||
Other
|
37
|
3
|
(19)
|
(13)
|
1
|
9
|
|||||||||||
Total Commercial
|
1,530
|
378
|
(68)
|
(740)
|
149
|
1,249
|
|||||||||||
Real Estate
|
|||||||||||||||||
Debt
|
949
|
60
|
1
|
(384)
|
5
|
631
|
|||||||||||
Business Properties
|
140
|
41
|
(8)
|
(71)
|
3
|
105
|
|||||||||||
Total Real Estate
|
1,089
|
101
|
(7)
|
(455)
|
8
|
736
|
|||||||||||
Consumer
|
|||||||||||||||||
Non-U.S. residential
|
|||||||||||||||||
mortgages
|
546
|
66
|
5
|
(213)
|
63
|
467
|
|||||||||||
Non-U.S. installment
|
|||||||||||||||||
and revolving credit
|
717
|
270
|
22
|
(798)
|
443
|
654
|
|||||||||||
U.S. installment and
|
|||||||||||||||||
revolving credit
|
2,008
|
1,807
|
(18)
|
(2,140)
|
373
|
2,030
|
|||||||||||
Non-U.S. auto
|
101
|
18
|
(7)
|
(110)
|
71
|
73
|
|||||||||||
Other
|
199
|
88
|
15
|
(193)
|
62
|
171
|
|||||||||||
Total Consumer
|
3,571
|
2,249
|
17
|
(3,454)
|
1,012
|
3,395
|
|||||||||||
Total
|
$
|
6,190
|
$
|
2,728
|
$
|
(58)
|
$
|
(4,649)
|
$
|
1,169
|
$
|
5,380
|
|||||
(a)
|
Other primarily included transfers to held for sale 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 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.
|
Balance at
|
Provision
|
Balance at
|
|||||||||||||||
January 1,
|
charged to
|
Gross
|
September 30,
|
||||||||||||||
(In millions)
|
2011
|
operations
|
Other
|
(a)
|
write-offs
|
(b)
|
Recoveries
|
(b)
|
2011
|
||||||||
Commercial
|
|||||||||||||||||
CLL
|
|||||||||||||||||
Americas
|
$
|
1,288
|
$
|
250
|
$
|
(79)
|
$
|
(544)
|
$
|
80
|
$
|
995
|
|||||
Europe
|
429
|
126
|
17
|
(218)
|
49
|
403
|
|||||||||||
Asia
|
222
|
81
|
16
|
(194)
|
25
|
150
|
|||||||||||
Other
|
6
|
3
|
(4)
|
–
|
–
|
5
|
|||||||||||
Total CLL
|
1,945
|
460
|
(50)
|
(956)
|
154
|
1,553
|
|||||||||||