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 June 30, 2010
|
|||||
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 Current and Retained Earnings
|
3
|
||
Condensed Statement of Financial Position
|
4
|
||
Condensed Statement of Cash Flows
|
5
|
||
Notes to Condensed, Consolidated Financial Statements (Unaudited)
|
6
|
||
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
37
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
59
|
|
Item 4.
|
Controls and Procedures
|
59
|
|
Part II – Other Information
|
|||
Item 1.
|
Legal Proceedings
|
59
|
|
Item 6.
|
Exhibits
|
61
|
|
Signatures
|
62
|
||
Three months ended
|
Six months ended
|
||||||||||
June 30
|
June 30
|
||||||||||
(In millions)
|
2010
|
2009
|
2010
|
2009
|
|||||||
Revenues
|
|||||||||||
Revenues from services (Note 9)
|
$
|
12,129
|
$
|
12,531
|
$
|
24,179
|
$
|
26,033
|
|||
Sales of goods
|
168
|
205
|
449
|
478
|
|||||||
Total revenues
|
12,297
|
12,736
|
24,628
|
26,511
|
|||||||
Costs and expenses
|
|||||||||||
Interest
|
3,863
|
4,475
|
7,792
|
9,588
|
|||||||
Operating and administrative
|
3,636
|
3,495
|
7,313
|
7,397
|
|||||||
Cost of goods sold
|
154
|
164
|
419
|
388
|
|||||||
Investment contracts, insurance losses and insurance annuity benefits
|
38
|
45
|
73
|
118
|
|||||||
Provision for losses on financing receivables
|
2,009
|
2,817
|
4,272
|
5,153
|
|||||||
Depreciation and amortization
|
1,856
|
1,946
|
3,780
|
4,126
|
|||||||
Total costs and expenses
|
11,556
|
12,942
|
23,649
|
26,770
|
|||||||
Earnings (loss) from continuing operations before income taxes
|
741
|
(206)
|
979
|
(259)
|
|||||||
Benefit for income taxes
|
76
|
654
|
448
|
1,782
|
|||||||
Earnings from continuing operations
|
817
|
448
|
1,427
|
1,523
|
|||||||
Loss from discontinued operations, net of taxes (Note 2)
|
(187)
|
(194)
|
(574)
|
(197)
|
|||||||
Net earnings
|
630
|
254
|
853
|
1,326
|
|||||||
Less net earnings (loss) attributable to noncontrolling interests
|
(13)
|
17
|
(10)
|
63
|
|||||||
Net earnings attributable to GECC
|
643
|
237
|
863
|
1,263
|
|||||||
Dividends
|
1
|
(31)
|
–
|
(47)
|
|||||||
Retained earnings at beginning of period
|
45,863
|
46,456
|
45,644
|
45,446
|
|||||||
Retained earnings at end of period
|
$
|
46,507
|
$
|
46,662
|
$
|
46,507
|
$
|
46,662
|
|||
Amounts attributable to GECC
|
|||||||||||
Earnings from continuing operations
|
$
|
830
|
$
|
431
|
$
|
1,437
|
$
|
1,460
|
|||
Loss from discontinued operations, net of taxes
|
(187)
|
(194)
|
(574)
|
(197)
|
|||||||
Net earnings attributable to GECC
|
$
|
643
|
$
|
237
|
$
|
863
|
$
|
1,263
|
|||
June 30,
|
December 31,
|
||||
(In millions)
|
2010
|
2009
|
|||
(Unaudited)
|
|||||
Assets
|
|||||
Cash and equivalents
|
$
|
61,188
|
$
|
63,696
|
|
Investment securities (Note 3)
|
15,800
|
27,509
|
|||
Inventories
|
71
|
71
|
|||
Financing receivables – net (Note 4)
|
333,262
|
336,926
|
|||
Other receivables
|
12,560
|
17,876
|
|||
Property, plant and equipment, less accumulated amortization of $25,612
|
|||||
and $26,307
|
53,669
|
56,695
|
|||
Goodwill (Note 5)
|
27,143
|
28,961
|
|||
Other intangible assets – net (Note 5)
|
2,347
|
3,018
|
|||
Other assets
|
81,317
|
86,355
|
|||
Assets of businesses held for sale
|
599
|
125
|
|||
Assets of discontinued operations (Note 2)
|
1,203
|
1,470
|
|||
Total assets(a)
|
$
|
589,159
|
$
|
622,702
|
|
Liabilities and equity
|
|||||
Short-term borrowings (Note 6)
|
$
|
116,015
|
$
|
128,329
|
|
Accounts payable
|
8,043
|
11,162
|
|||
Non-recourse borrowings of consolidated securitization entities (Note 6)
|
33,411
|
3,883
|
|||
Bank deposits (Note 6)
|
37,471
|
38,923
|
|||
Long-term borrowings (Note 6)
|
289,699
|
326,321
|
|||
Investment contracts, insurance liabilities and insurance annuity benefits
|
7,430
|
8,687
|
|||
Other liabilities
|
19,658
|
22,736
|
|||
Deferred income taxes
|
5,279
|
5,831
|
|||
Liabilities of businesses held for sale
|
261
|
55
|
|||
Liabilities of discontinued operations (Note 2)
|
971
|
853
|
|||
Total liabilities(a)
|
518,238
|
546,780
|
|||
Capital stock
|
56
|
56
|
|||
Accumulated other comprehensive income – net(b)
|
|||||
Investment securities
|
(702)
|
(676)
|
|||
Currency translation adjustments
|
(2,750)
|
1,228
|
|||
Cash flow hedges
|
(1,340)
|
(1,816)
|
|||
Benefit plans
|
(369)
|
(434)
|
|||
Additional paid-in capital
|
28,421
|
28,431
|
|||
Retained earnings
|
46,507
|
46,929
|
|||
Total GECC shareowner's equity
|
69,823
|
73,718
|
|||
Noncontrolling interests(c)
|
1,098
|
2,204
|
|||
Total equity
|
70,921
|
75,922
|
|||
Total liabilities and equity
|
$
|
589,159
|
$
|
622,702
|
|
(a)
|
Our consolidated assets at June 30, 2010 include total assets of $52,015 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 $42,786 million and investment securities of $6,168 million. Our consolidated liabilities at June 30, 2010 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 $32,696 million. See Note 12.
|
(b)
|
The sum of accumulated other comprehensive income − net was $(5,161) million and $(1,698) million at June 30, 2010 and December 31, 2009, respectively.
|
(c)
|
Included accumulated other comprehensive income attributable to noncontrolling interests of $(161) million and $(191) million at June 30, 2010 and December 31, 2009, respectively.
|
Six months ended June 30
|
|||||
(In millions)
|
2010
|
2009
|
|||
Cash flows – operating activities
|
|||||
Net earnings
|
$
|
853
|
$
|
1,326
|
|
Less net earnings attributable to noncontrolling interests
|
(10)
|
63
|
|||
Net earnings attributable to GECC
|
863
|
1,263
|
|||
Loss from discontinued operations
|
574
|
197
|
|||
Adjustments to reconcile net earnings attributable to GECC
|
|||||
to cash provided from operating activities
|
|||||
Depreciation and amortization of property, plant and equipment
|
3,780
|
4,126
|
|||
Increase (decrease) in accounts payable
|
2,444
|
(858)
|
|||
Provision for losses on financing receivables
|
4,272
|
5,153
|
|||
All other operating activities
|
(435)
|
(11,427)
|
|||
Cash from (used for) operating activities – continuing operations
|
11,498
|
(1,546)
|
|||
Cash from (used for) operating activities – discontinued operations
|
(67)
|
(26)
|
|||
Cash from (used for) operating activities
|
11,431
|
(1,572)
|
|||
Cash flows – investing activities
|
|||||
Additions to property, plant and equipment
|
(2,205)
|
(3,296)
|
|||
Dispositions of property, plant and equipment
|
2,287
|
2,668
|
|||
Increase in loans to customers
|
(152,988)
|
(114,271)
|
|||
Principal collections from customers – loans
|
164,765
|
132,395
|
|||
Investment in equipment for financing leases
|
(4,593)
|
(4,606)
|
|||
Principal collections from customers – financing leases
|
8,555
|
9,886
|
|||
Net change in credit card receivables
|
1,573
|
2,046
|
|||
Proceeds from principal business dispositions
|
825
|
8,846
|
|||
Payments for principal businesses purchased
|
–
|
(5,637)
|
|||
All other investing activities
|
9,905
|
2,459
|
|||
Cash from (used for) investing activities – continuing operations
|
28,124
|
30,490
|
|||
Cash from (used for) investing activities – discontinued operations
|
1
|
30
|
|||
Cash from (used for) investing activities
|
28,125
|
30,520
|
|||
Cash flows – financing activities
|
|||||
Net increase (decrease) in borrowings (maturities of 90 days or less)
|
(2,382)
|
(26,638)
|
|||
Net increase (decrease) in bank deposits
|
748
|
(6,450)
|
|||
Newly issued debt (maturities longer than 90 days)
|
|||||
Short-term (91 to 365 days)
|
10,628
|
2,804
|
|||
Long-term (longer than one year)
|
16,663
|
45,882
|
|||
Non-recourse, leveraged lease
|
–
|
–
|
|||
Repayments and other debt reductions (maturities longer than 90 days)
|
|||||
Short-term (91 to 365 days)
|
(63,476)
|
(35,656)
|
|||
Long-term (longer than one year)
|
(989)
|
(2,731)
|
|||
Non-recourse, leveraged lease
|
(454)
|
(470)
|
|||
Dividends paid to shareowner
|
–
|
–
|
|||
Capital contribution and share issuance
|
–
|
8,750
|
|||
All other financing activities
|
(1,270)
|
(1,619)
|
|||
Cash from (used for) financing activities – continuing operations
|
(40,532)
|
(16,128)
|
|||
Cash from (used for) financing activities – discontinued operations
|
–
|
–
|
|||
Cash from (used for) financing activities
|
(40,532)
|
(16,128)
|
|||
Effect of currency exchange rate changes on cash and equivalents
|
(1,598)
|
(53)
|
|||
Increase (decrease) in cash and equivalents
|
(2,574)
|
12,767
|
|||
Cash and equivalents at beginning of year
|
63,880
|
36,605
|
|||
Cash and equivalents at June 30
|
61,306
|
49,372
|
|||
Less cash and equivalents of discontinued operations at June 30
|
118
|
184
|
|||
Cash and equivalents of continuing operations at June 30
|
$
|
61,188
|
$
|
49,188
|
|
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2010
|
2009
|
2010
|
2009
|
|||||||
Total revenues
|
$
|
(2)
|
$
|
(2)
|
$
|
(3)
|
$
|
(8)
|
|||
Loss from discontinued operations, net of taxes
|
|||||||||||
Loss from operations
|
$
|
(2)
|
$
|
(63)
|
$
|
(8)
|
$
|
(70)
|
|||
Loss on disposal
|
(185)
|
(131)
|
(566)
|
(127)
|
|||||||
Total loss from discontinued operations, net of taxes
|
$
|
(187)
|
$
|
(194)
|
$
|
(574)
|
$
|
(197)
|
|||
At
|
|||||||||||||||||||||||
June 30, 2010
|
December 31, 2009
|
||||||||||||||||||||||
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
|
$
|
3,831
|
$
|
70
|
$
|
(152)
|
$
|
3,749
|
$
|
5,215
|
$
|
83
|
$
|
(236)
|
$
|
5,062
|
|||||||
State and municipal
|
879
|
7
|
(185)
|
701
|
887
|
3
|
(216)
|
674
|
|||||||||||||||
Residential mortgage-backed(a)
|
2,481
|
20
|
(468)
|
2,033
|
2,999
|
21
|
(722)
|
2,298
|
|||||||||||||||
Commercial mortgage-backed
|
1,569
|
13
|
(166)
|
1,416
|
1,599
|
5
|
(302)
|
1,302
|
|||||||||||||||
Asset-backed
|
2,323
|
61
|
(232)
|
2,152
|
2,468
|
29
|
(298)
|
2,199
|
|||||||||||||||
Corporate – non-U.S.
|
1,575
|
56
|
(81)
|
1,550
|
994
|
18
|
(26)
|
986
|
|||||||||||||||
Government – non-U.S.
|
2,099
|
11
|
(42)
|
2,068
|
2,461
|
15
|
(25)
|
2,451
|
|||||||||||||||
U.S. government and
|
|||||||||||||||||||||||
federal agency
|
638
|
4
|
–
|
642
|
1,865
|
-
|
-
|
1,865
|
|||||||||||||||
Retained interests(b)
|
58
|
9
|
(26)
|
41
|
8,479
|
392
|
(40)
|
8,831
|
|||||||||||||||
Equity
|
|||||||||||||||||||||||
Available-for-sale
|
949
|
115
|
(36)
|
1,028
|
897
|
227
|
(3)
|
1,121
|
|||||||||||||||
Trading
|
420
|
–
|
–
|
420
|
720
|
-
|
-
|
720
|
|||||||||||||||
Total
|
$
|
16,822
|
$
|
366
|
$
|
(1,388)
|
$
|
15,800
|
$
|
28,584
|
$
|
793
|
$
|
(1,868)
|
$
|
27,509
|
|||||||
(a)
|
Substantially collateralized by U.S. mortgages. Of our total RMBS portfolio at June 30, 2010, $1,102 million relates to securities issued by government sponsored entities and $931 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 individual financial institutions.
|
(b)
|
Included $1,918 million of retained interests at December 31, 2009 accounted for at fair value in accordance with ASC 815, Derivatives and Hedging. See Note 12.
|
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
|
|||||||
June 30, 2010
|
|||||||||||
Debt
|
|||||||||||
U.S. corporate
|
$
|
661
|
$
|
(7)
|
$
|
877
|
$
|
(145)
|
|||
State and municipal
|
278
|
(14)
|
396
|
(171)
|
|||||||
Residential mortgage-backed
|
691
|
(3)
|
1,234
|
(465)
|
|||||||
Commercial mortgage-backed
|
351
|
(2)
|
1,065
|
(164)
|
|||||||
Asset-backed
|
176
|
(20)
|
938
|
(212)
|
|||||||
Corporate – non-U.S.
|
416
|
(27)
|
620
|
(54)
|
|||||||
Government – non-U.S.
|
678
|
(2)
|
134
|
(40)
|
|||||||
U.S. government and federal agency
|
–
|
–
|
–
|
–
|
|||||||
Retained interests
|
–
|
–
|
14
|
(26)
|
|||||||
Equity
|
154
|
(35)
|
3
|
(1)
|
|||||||
Total
|
$
|
3,405
|
$
|
(110)
|
$
|
5,281
|
$
|
(1,278)
|
|||
December 31, 2009
|
|||||||||||
Debt
|
|||||||||||
U.S. corporate
|
$
|
611
|
$
|
(20)
|
$
|
1,365
|
$
|
(216)
|
|||
State and municipal
|
237
|
(120)
|
421
|
(96)
|
|||||||
Residential mortgage-backed
|
74
|
(4)
|
1,561
|
(718)
|
|||||||
Commercial mortgage-backed
|
–
|
–
|
1,015
|
(302)
|
|||||||
Asset-backed
|
68
|
(7)
|
1,312
|
(291)
|
|||||||
Corporate – non-U.S.
|
310
|
(14)
|
346
|
(12)
|
|||||||
Government – non-U.S.
|
370
|
(3)
|
195
|
(22)
|
|||||||
U.S. government and federal agency
|
–
|
–
|
–
|
–
|
|||||||
Retained interests
|
208
|
(16)
|
27
|
(24)
|
|||||||
Equity
|
23
|
(1)
|
8
|
(2)
|
|||||||
Total
|
$
|
1,901
|
$
|
(185)
|
$
|
6,250
|
$
|
(1,683)
|
|||
Amortized
|
Estimated
|
||||
(In millions)
|
cost
|
fair value
|
|||
Due in
|
|||||
2010
|
$
|
2,851
|
$
|
2,869
|
|
2011-2014
|
3,490
|
3,494
|
|||
2015-2019
|
1,619
|
1,434
|
|||
2020 and later
|
1,062
|
913
|
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2010
|
2009
|
2010
|
2009
|
|||||||
Gains
|
$
|
32
|
$
|
19
|
$
|
113
|
$
|
27
|
|||
Losses, including impairments
|
(55)
|
(83)
|
(129)
|
(251)
|
|||||||
Net
|
$
|
(23)
|
$
|
(64)
|
$
|
(16)
|
$
|
(224)
|
|||
At
|
||||||||
June 30,
|
January 1,
|
December 31,
|
||||||
(In millions)
|
2010
|
2010(a)
|
2009
|
|||||
Loans, net of deferred income
|
$
|
294,016
|
$
|
331,710
|
$
|
290,586
|
||
Investment in financing leases, net of deferred income
|
48,339
|
55,209
|
54,445
|
|||||
342,355
|
386,919
|
345,031
|
||||||
Less allowance for losses
|
(9,093)
|
(9,805)
|
(8,105)
|
|||||
Financing receivables – net(b)
|
$
|
333,262
|
$
|
377,114
|
$
|
336,926
|
||
(a)
|
Reflects the effects of our adoption of ASU 2009-16 & 17 on January 1, 2010.
|
(b)
|
Financing receivables at June 30, 2010 and December 31, 2009 included $1,621 million and $2,704 million, respectively, relating to loans that had been acquired in a transfer but have been subject to credit deterioration since origination per ASC 310, Receivables.
|
At
|
||||||||
June 30,
|
January 1,
|
December 31,
|
||||||
(In millions)
|
2010
|
2010(a)
|
2009
|
|||||
CLL(b)
|
||||||||
Americas
|
$
|
93,042
|
$
|
99,666
|
$
|
87,496
|
||
Europe
|
36,067
|
43,403
|
41,455
|
|||||
Asia
|
11,914
|
13,159
|
13,202
|
|||||
Other
|
2,727
|
2,836
|
2,836
|
|||||
143,750
|
159,064
|
144,989
|
||||||
Consumer(b)
|
||||||||
Non-U.S. residential mortgages
|
48,013
|
58,345
|
58,345
|
|||||
Non-U.S. installment and revolving credit
|
21,783
|
24,976
|
24,976
|
|||||
U.S. installment and revolving credit
|
42,946
|
47,171
|
23,190
|
|||||
Non-U.S. auto
|
10,012
|
13,344
|
13,344
|
|||||
Other
|
9,764
|
11,688
|
11,688
|
|||||
132,518
|
155,524
|
131,543
|
||||||
Real Estate
|
44,006
|
48,673
|
44,841
|
|||||
Energy Financial Services
|
7,472
|
7,790
|
7,790
|
|||||
GECAS(b)
|
12,337
|
13,254
|
13,254
|
|||||
Other(c)
|
2,272
|
2,614
|
2,614
|
|||||
342,355
|
386,919
|
345,031
|
||||||
Less allowance for losses
|
(9,093)
|
(9,805)
|
(8,105)
|
|||||
Total
|
$
|
333,262
|
$
|
377,114
|
$
|
336,926
|
||
(a)
|
Reflects the effects of our adoption of ASU 2009-16 &17 on January 1, 2010.
|
(b)
|
During the first quarter of 2010, we transferred the Transportation Financial Services business from GECAS to CLL and the Consumer business in Italy from Consumer to CLL. Prior-period amounts were reclassified to conform to the current-period presentation.
|
(c)
|
Consisted of loans and financing leases related to certain consolidated, liquidating securitization entities.
|
At
|
||||||||
June 30,
|
January 1,
|
December 31,
|
||||||
(In millions)
|
2010
|
2010(a)
|
2009
|
|||||
Loans requiring allowance for losses
|
$
|
11,515
|
$
|
9,541
|
$
|
9,145
|
||
Loans expected to be fully recoverable
|
3,924
|
3,914
|
3,741
|
|||||
Total impaired loans
|
$
|
15,439
|
$
|
13,455
|
$
|
12,886
|
||
Allowance for losses (specific reserves)
|
$
|
3,033
|
$
|
2,376
|
$
|
2,331
|
||
Average investment during the period
|
14,182
|
(c)
|
8,493
|
|||||
Interest income earned while impaired(b)
|
206
|
(c)
|
227
|
|||||
(a)
|
Reflects the effects of our adoption of ASU 2009-16 &17 on January 1, 2010.
|
(b)
|
Recognized principally on cash basis.
|
(c)
|
Not applicable.
|
Balance
|
Adoption of
|
Balance
|
Provision
|
Balance
|
|||||||||||||||||||
December 31,
|
ASU 2009 -
|
January 1,
|
charged to
|
Gross
|
June 30,
|
||||||||||||||||||
(In millions)
|
2009
|
16 & 17
|
(a)
|
2010
|
operations
|
Other(b)
|
write-offs
|
Recoveries
|
2010
|
||||||||||||||
CLL(c)
|
|||||||||||||||||||||||
Americas
|
$
|
1,179
|
$
|
66
|
$
|
1,245
|
$
|
630
|
$
|
(10)
|
$
|
(558)
|
$
|
55
|
$
|
1,362
|
|||||||
Europe
|
575
|
–
|
575
|
137
|
(70)
|
(288)
|
28
|
382
|
|||||||||||||||
Asia
|
244
|
(10)
|
234
|
108
|
(23)
|
(94)
|
9
|
234
|
|||||||||||||||
Other
|
11
|
–
|
11
|
(1)
|
(2)
|
–
|
–
|
8
|
|||||||||||||||
Consumer(c)
|
|||||||||||||||||||||||
Non-U.S. residential
|
|||||||||||||||||||||||
mortgages
|
949
|
–
|
949
|
184
|
(105)
|
(187)
|
51
|
892
|
|||||||||||||||
Non-U.S. installment
|
|||||||||||||||||||||||
and revolving credit
|
1,181
|
–
|
1,181
|
652
|
(114)
|
(987)
|
288
|
1,020
|
|||||||||||||||
U.S. installment and
|
|||||||||||||||||||||||
revolving credit
|
1,698
|
1,602
|
3,300
|
1,604
|
(1)
|
(2,400)
|
251
|
2,754
|
|||||||||||||||
Non-U.S. auto
|
308
|
–
|
308
|
71
|
(43)
|
(204)
|
102
|
234
|
|||||||||||||||
Other
|
300
|
–
|
300
|
165
|
(34)
|
(217)
|
43
|
257
|
|||||||||||||||
Real Estate
|
1,494
|
42
|
1,536
|
645
|
(11)
|
(374)
|
1
|
1,797
|
|||||||||||||||
Energy Financial
|
|||||||||||||||||||||||
Services
|
28
|
–
|
28
|
24
|
1
|
–
|
–
|
53
|
|||||||||||||||
GECAS(c)
|
104
|
–
|
104
|
35
|
–
|
(89)
|
–
|
50
|
|||||||||||||||
Other
|
34
|
–
|
34
|
18
|
–
|
(3)
|
1
|
50
|
|||||||||||||||
Total
|
$
|
8,105
|
$
|
1,700
|
$
|
9,805
|
$
|
4,272
|
$
|
(412)
|
$
|
(5,401)
|
$
|
829
|
$
|
9,093
|
|||||||
(a)
|
Reflects the effects of our adoption of ASU 2009-16 & 17 on January 1, 2010.
|
(b)
|
Other primarily included the effects of currency exchange.
|
(c)
|
During the first quarter of 2010, we transferred the Transportation Financial Services business from GECAS to CLL and the Consumer business in Italy from Consumer to CLL. Prior-period amounts were reclassified to conform to the current-period presentation.
|
Balance
|
Provision
|
Balance
|
|||||||||||||||
January 1,
|
charged to
|
Gross
|
June 30,
|
||||||||||||||
(In millions)
|
2009
|
operations
|
Other(a)
|
write-offs
|
Recoveries
|
2009
|
|||||||||||
CLL(b)
|
|||||||||||||||||
Americas
|
$
|
843
|
$
|
736
|
$
|
(33)
|
$
|
(457)
|
$
|
44
|
$
|
1,133
|
|||||
Europe
|
311
|
323
|
–
|
(192)
|
36
|
478
|
|||||||||||
Asia
|
163
|
120
|
(6)
|
(85)
|
7
|
199
|
|||||||||||
Other
|
4
|
3
|
2
|
(1)
|
–
|
8
|
|||||||||||
Consumer(b)
|
|||||||||||||||||
Non-U.S. residential
|
|||||||||||||||||
mortgages
|
381
|
560
|
59
|
(231)
|
59
|
828
|
|||||||||||
Non-U.S. installment
|
|||||||||||||||||
and revolving credit
|
1,049
|
891
|
65
|
(1,092)
|
228
|
1,141
|
|||||||||||
U.S. installment and
|
|||||||||||||||||
revolving credit
|
1,700
|
1,729
|
(497)
|
(1,438)
|
81
|
1,575
|
|||||||||||
Non-U.S. auto
|
203
|
242
|
26
|
(297)
|
90
|
264
|
|||||||||||
Other
|
226
|
160
|
(16)
|
(163)
|
27
|
234
|
|||||||||||
Real Estate
|
301
|
344
|
10
|
(85)
|
–
|
570
|
|||||||||||
Energy Financial
|
|||||||||||||||||
Services
|
58
|
32
|
2
|
–
|
–
|
92
|
|||||||||||
GECAS(b)
|
58
|
1
|
(1)
|
–
|
–
|
58
|
|||||||||||
Other
|
28
|
12
|
1
|
(14)
|
–
|
27
|
|||||||||||
Total
|
$
|
5,325
|
$
|
5,153
|
$
|
(388)
|
$
|
(4,055)
|
$
|
572
|
$
|
6,607
|
|||||
(a)
|
Other primarily included the effects of securitization activity and currency exchange.
|
(b)
|
During the first quarter of 2010, we transferred the Transportation Financial Services business from GECAS to CLL and the Consumer business in Italy from Consumer to CLL. Prior-period amounts were reclassified to conform to the current-period presentation.
|
At
|
|||||
June 30,
|
December 31,
|
||||
(In millions)
|
2010
|
2009
|
|||
Goodwill
|
$
|
27,143
|
$
|
28,961
|
|
Other intangible assets
|
|||||
Intangible assets subject to amortization
|
$
|
2,347
|
$
|
3,018
|
|
Dispositions,
|
||||||||||||
Balance
|
currency
|
Balance
|
||||||||||
January 1,
|
exchange
|
June 30,
|
||||||||||
(In millions)
|
2010
|
(a)
|
Acquisitions
|
and other
|
2010
|
|||||||
CLL(b)
|
$
|
14,053
|
$
|
–
|
$
|
(656)
|
$
|
13,397
|
||||
Consumer(b)
|
11,443
|
–
|
(482)
|
10,961
|
||||||||
Real Estate
|
1,189
|
–
|
(112)
|
1,077
|
||||||||
Energy Financial Services
|
2,119
|
–
|
(557)
|
1,562
|
||||||||
GECAS
|
157
|
–
|
(11)
|
146
|
||||||||
Total
|
$
|
28,961
|
$
|
–
|
$
|
(1,818)
|
$
|
27,143
|
||||
(a)
|
Reflected the transfer of previously owned assets by GECS on January 1, 2010, resulting in a related increase in goodwill of $141 million.
|
(b)
|
Reflected the transfer of the Consumer business in Italy during the first quarter of 2010 from Consumer to CLL, resulting in a related movement of beginning goodwill balance of $18 million.
|
At
|
|||||||||||||||||
June 30, 2010
|
December 31, 2009
|
||||||||||||||||
Gross
|
Gross
|
||||||||||||||||
carrying
|
Accumulated
|
carrying
|
Accumulated
|
||||||||||||||
(In millions)
|
amount
|
amortization
|
Net
|
amount
|
amortization
|
Net
|
|||||||||||
Customer-related
|
$
|
1,527
|
$
|
(708)
|
$
|
819
|
$
|
1,831
|
$
|
(690)
|
$
|
1,141
|
|||||
Patents, licenses and trademarks
|
614
|
(508)
|
106
|
630
|
(461)
|
169
|
|||||||||||
Capitalized software
|
1,956
|
(1,442)
|
514
|
2,169
|
(1,558)
|
611
|
|||||||||||
Lease valuations
|
1,643
|
(831)
|
812
|
1,754
|
(793)
|
961
|
|||||||||||
All other
|
352
|
(256)
|
96
|
475
|
(339)
|
136
|
|||||||||||
Total
|
$
|
6,092
|
$
|
(3,745)
|
$
|
2,347
|
$
|
6,859
|
$
|
(3,841)
|
$
|
3,018
|
At
|
|||||
(In millions)
|
June 30,
|
December 31,
|
|||
2010
|
2009
|
||||
Short-term borrowings
|
|||||
Commercial paper
|
|||||
U.S.
|
$
|
31,155
|
$
|
32,637
|
|
Non-U.S.
|
9,647
|
9,525
|
|||
Current portion of long-term borrowings(a)(b)(c)
|
62,998
|
69,881
|
|||
GE Interest Plus notes(d)
|
8,354
|
7,541
|
|||
Other(c)
|
3,861
|
8,745
|
|||
Total short-term borrowings
|
$
|
116,015
|
$
|
128,329
|
|
Long-term borrowings
|
|||||
Senior unsecured notes(a)(b)
|
$
|
269,871
|
$
|
305,535
|
|
Subordinated notes(e)
|
2,112
|
2,388
|
|||
Subordinated debentures(f)
|
6,952
|
7,647
|
|||
Other(c)(g)
|
10,764
|
10,751
|
|||
Total long-term borrowings
|
$
|
289,699
|
$
|
326,321
|
|
Non-recourse borrowings of consolidated securitization entities(h)
|
$
|
33,411
|
$
|
3,883
|
|
Bank deposits(i)
|
$
|
37,471
|
$
|
38,923
|
|
Total borrowings and bank deposits
|
$
|
476,596
|
$
|
497,456
|
|
|
(a)
|
GECC had issued and outstanding $58,045 million and $59,336 million of senior, unsecured debt that was guaranteed by the Federal Deposit Insurance Corporation (FDIC) under the Temporary Liquidity Guarantee Program at June 30, 2010 and December 31, 2009, respectively. Of the above amounts $13,000 million and $5,841 million is included in current portion of long-term borrowings at June 30, 2010 and December 31, 2009, respectively.
|
(b)
|
Included in total long-term borrowings was $2,624 million and $3,138 million of obligations to holders of guaranteed investment contracts at June 30, 2010 and December 31, 2009, respectively. GECC could be required to repay up to approximately $2,500 million if its long-term credit rating were to fall below AA-/Aa3 or its short-term credit rating were to fall below A-1+/P-1.
|
(c)
|
Included $10,400 million and $10,604 million of secured funding at June 30, 2010 and December 31, 2009, respectively, of which $3,795 million and $5,667 million is non-recourse to GECC at June 30, 2010 and December 31, 2009, respectively.
|
(d)
|
Entirely variable denomination floating rate demand notes.
|
(e)
|
Included $117 million of subordinated notes guaranteed by GE at both June 30, 2010 and December 31, 2009.
|
(f)
|
Subordinated debentures receive rating agency equity credit and were hedged at issuance to the U.S. dollar equivalent of $7,725 million.
|
(g)
|
Included $1,533 million and $1,649 million of covered bonds at June 30, 2010 and December 31, 2009, respectively. If the short-term credit rating of GECC were reduced below A-1/P-1, GECC would be required to partially cash collateralize these bonds in an amount up to $707 million.
|
(h)
|
Included at June 30, 2010 was $2,100 million of commercial paper, $11,674 million of current portion of long-term borrowings and $19,637 million of long-term borrowings related to former QSPEs consolidated on January 1, 2010 upon our adoption of ASU 2009-16 & 17, previously consolidated liquidating securitization entities and other on-book securitization borrowings. Included at December 31, 2009, was $2,424 million of commercial paper, $378 million of current portion of long-term borrowings and $1,081 million of long-term borrowings issued by consolidated liquidating securitization entities. See Note 12.
|
(i)
|
Included $19,816 million and $21,252 million of deposits in non-U.S. banks at June 30, 2010 and December 31, 2009, respectively, and $10,882 million and $10,476 million of certificates of deposits distributed by brokers with maturities greater than one year at June 30, 2010 and December 31, 2009, respectively.
|
At
|
|||||
June 30,
|
December 31,
|
||||
(In millions)
|
2010
|
2009
|
|||
Unrecognized tax benefits
|
$
|
3,420
|
$
|
3,820
|
|
Portion that, if recognized, would reduce tax expense and effective tax rate(a)
|
1,580
|
1,792
|
|||
Accrued interest on unrecognized tax benefits
|
768
|
713
|
|||
Accrued penalties on unrecognized tax benefits
|
67
|
73
|
|||
Reasonably possible reduction to the balance of unrecognized
|
|||||
tax benefits in succeeding 12 months
|
0-1000
|
0-650
|
|||
Portion that, if recognized, would reduce tax expense and effective tax rate(a)
|
0-550
|
0-250
|
|||
(a)
|
Some portion of such reduction may be reported as discontinued operations.
|
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2010
|
2009
|
2010
|
2009
|
|||||||
Net earnings attributable to GECC
|
$
|
643
|
$
|
237
|
$
|
863
|
$
|
1,263
|
|||
Investment securities – net
|
41
|
556
|
(26)
|
516
|
|||||||
Currency translation adjustments – net
|
(2,618)
|
4,731
|
(3,978)
|
1,707
|
|||||||
Cash flow hedges – net
|
63
|
593
|
476
|
1,316
|
|||||||
Benefit plans – net
|
23
|
(17)
|
65
|
(9)
|
|||||||
Total
|
$
|
(1,848)
|
$
|
6,100
|
$
|
(2,600)
|
$
|
4,793
|
|||
Three months ended June 30
|
Six months ended June 30
|
||||||||||
(In millions)
|
2010
|
2009
|
2010
|
2009
|
|||||||
Interest on loans(a)
|
$
|
5,588
|
$
|
5,064
|
$
|
11,297
|
$
|
10,145
|
|||
Equipment leased to others
|
2,769
|
2,927
|
5,530
|
6,412
|
|||||||
Fees(a)
|
1,224
|
1,098
|
2,488
|
2,258
|
|||||||
Investment income(a)(b)
|
110
|
616
|
269
|
954
|
|||||||
Financing leases(a)
|
703
|
830
|
1,459
|
1,738
|
|||||||
Net securitization gains(a)
|
–
|
394
|
–
|
720
|
|||||||
Real estate investments
|
354
|
371
|
631
|
718
|
|||||||
Associated companies(c)
|
460
|
309
|
1,057
|
474
|
|||||||
Other items(d)(e)
|
921
|
922
|
1,448
|
2,614
|
|||||||
Total
|
$
|
12,129
|
$
|
12,531
|
$
|
24,179
|
$
|
26,033
|
|||
(a)
|
On January 1, 2010, we adopted ASU 2009-16 & 17 which required us to consolidate substantially all of our former QSPEs. As a result, 2010 Revenues from services include interest and fee income from these entities, which were not presented on a consolidated basis in 2009. Also beginning in 2010, we no longer record gains for substantially all of our securitizations as they are recorded as on-book financings. See Note 12.
|
(b)
|
Included net other-than-temporary impairments on investment securities of $53 million and $80 million in the second quarters of 2010 and 2009, respectively, and $126 million and $243 million in the first six months of 2010 and 2009, respectively. See Note 3.
|
(c)
|
Aggregate summarized financial information for significant associated companies assuming a 100% ownership interest included total assets at June 30, 2010 and December 31, 2009 of $207,605 million and $137,075 million, respectively. Assets were primarily financing receivables of $110,269 million and $82,873 million at June 30, 2010 and December 31, 2009, respectively. Total liabilities were $173,188 million and $118,708 million, consisted primarily of bank deposits of $96,430 million and $69,573 million at June 30, 2010 and December 31, 2009, respectively, and debt of $59,216 million and $48,677 million at June 30, 2010 and December 31, 2009, respectively. Revenues in the second quarters of 2010 and 2009 totaled $4,750 million and $5,125 million, respectively, and net earnings in the second quarters of 2010 and 2009 totaled $1,153 million and $554 million, respectively. Revenues in the first six months of 2010 and 2009 totaled $9,716 million and $9,340 million, respectively, and net earnings in the first six months of 2010 and 2009 totaled $2,032 million and $1,163 million, respectively.
|
(d)
|
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.
|
(e)
|
Included a gain of $343 million on the remeasurement to fair value of our equity method investment in BAC Credomatic GECF Inc. (BAC), following our acquisition of a controlling interest in the second quarter of 2009.
|
(In millions)
|
Netting
|
|||||||||||||
Level 1
|
(a)
|
Level 2
|
(a)
|
Level 3
|
(b)
|
adjustment
|
(c)
|
Net balance
|
||||||
June 30, 2010
|
||||||||||||||
Assets
|
||||||||||||||
Investment securities
|
||||||||||||||
Debt
|
||||||||||||||
U.S. corporate
|
$
|
726
|
$
|
1,385
|
$
|
1,638
|
$
|
–
|
$
|
3,749
|
||||
State and municipal
|
–
|
463
|
238
|
–
|
701
|
|||||||||
Residential mortgage-backed
|
–
|
1,987
|
46
|
–
|
2,033
|
|||||||||
Commercial mortgage-backed
|
–
|
1,368
|
48
|
–
|
1,416
|
|||||||||
Asset-backed
|
–
|
690
|
1,462
|
–
|
2,152
|
|||||||||
Corporate - non-U.S.
|
136
|
544
|
870
|
–
|
1,550
|
|||||||||
Government - non-U.S.
|
933
|
992
|
143
|
–
|
2,068
|
|||||||||
U.S. government and federal agency
|
47
|
595
|
–
|
–
|
642
|
|||||||||
Retained interests(d)
|
–
|
–
|
41
|
–
|
41
|
|||||||||
Equity
|
||||||||||||||
Available-for-sale
|
385
|
628
|
15
|
–
|
1,028
|
|||||||||
Trading
|
420
|
–
|
–
|
–
|
420
|
|||||||||
Derivatives(e)
|
–
|
11,504
|
677
|
(4,530)
|
7,651
|
|||||||||
Other(f)
|
–
|
–
|
486
|
–
|
486
|
|||||||||
Total
|
$
|
2,647
|
$
|
20,156
|
$
|
5,664
|
$
|
(4,530)
|
$
|
23,937
|
||||
Liabilities
|
||||||||||||||
Derivatives
|
$
|
–
|
$
|
6,464
|
$
|
488
|
$
|
(4,538)
|
$
|
2,414
|
||||
Other
|
–
|
29
|
–
|
–
|
29
|
|||||||||
Total
|
$
|
–
|
$
|
6,493
|
$
|
488
|
$
|
(4,538)
|
$
|
2,443
|
||||
December 31, 2009
|
||||||||||||||
Assets
|
||||||||||||||
Investment securities
|
||||||||||||||
Debt
|
||||||||||||||
U.S. corporate
|
$
|
1,535
|
$
|
1,871
|
$
|
1,656
|
$
|
–
|
$
|
5,062
|
||||
State and municipal
|
–
|
501
|
173
|
–
|
674
|
|||||||||
Residential mortgage-backed
|
–
|
2,254
|
44
|
–
|
2,298
|
|||||||||
Commercial mortgage-backed
|
–
|
1,251
|
51
|
–
|
1,302
|
|||||||||
Asset-backed
|
–
|
719
|
1,480
|
–
|
2,199
|
|||||||||
Corporate - non-U.S.
|
159
|
51
|
776
|
–
|
986
|
|||||||||
Government - non-U.S.
|
1,277
|
1,023
|
151
|
–
|
2,451
|
|||||||||
U.S. government and federal agency
|
85
|
1,780
|
–
|
–
|
1,865
|
|||||||||
Retained interests
|
–
|
–
|
8,831
|
–
|
8,831
|
|||||||||
Equity
|
||||||||||||||
Available-for-sale
|
437
|
667
|
17
|
–
|
1,121
|
|||||||||
Trading
|
720
|
–
|
–
|
–
|
720
|
|||||||||
Derivatives(e)
|
–
|
10,411
|
451
|
(3,611)
|
7,251
|
|||||||||
Other(f)
|
–
|
–
|
595
|
–
|
595
|
|||||||||
Total
|
$
|
4,213
|
$
|
20,528
|
$
|
14,225
|
$
|
(3,611)
|
$
|
35,355
|
||||
Liabilities
|
||||||||||||||
Derivatives
|
$
|
–
|
$
|
6,838
|
$
|
219
|
$
|
(3,623)
|
$
|
3,434
|
||||
Other
|
–
|
32
|
–
|
–
|
32
|
|||||||||
Total
|
$
|
–
|
$
|
6,870
|
$
|
219
|
$
|
(3,623)
|
$
|
3,466
|
||||
(a)
|
Transfers between Level 1 to 2 were insignificant.
|
(b)
|
Level 3 investment securities valued using non-binding broker quotes totaled $374 million and $620 million at June 30, 2010 and December 31, 2009, respectively, and were classified as available-for-sale securities.
|
(c)
|
The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Included fair value adjustments related to our own and counterparty credit risk.
|
(d)
|
Substantially all of our retained interests were consolidated in connection with our adoption of ASU 2009-16 & 17 on January 1, 2010.
|
(e)
|
The fair value of derivatives included an adjustment for non-performance risk. At June 30, 2010 and December 31, 2009, the cumulative adjustment was a gain of $8 million and $12 million, respectively. See Note 11 for additional information on the composition of our derivative portfolio.
|
(f)
|
Included private equity investments and loans designated under the fair value option.
|
(In millions)
|
Net realized/
|
Net change
|
||||||||||||||||||||
unrealized
|
in unrealized
|
|||||||||||||||||||||
gains (losses)
|
gains (losses)
|
|||||||||||||||||||||
Net realized/
|
included in
|
relating to
|
||||||||||||||||||||
unrealized
|
accumulated
|
Purchases,
|
Transfers
|
instruments
|
||||||||||||||||||
gains(losses)
|
other
|
issuances
|
in and/or
|
still held at
|
||||||||||||||||||
April 1,
|
included in
|
comprehensive
|
and
|
out of
|
June 30,
|
June 30,
|
||||||||||||||||
2010
|
earnings
|
(a)
|
income
|
settlements
|
Level 3
|
(b)
|
2010
|
2010
|
(c)
|
|||||||||||||
Investment securities
|
||||||||||||||||||||||
Debt
|
||||||||||||||||||||||
U.S. corporate
|
$
|
1,440
|
$
|
10
|
$
|
11
|
$
|
180
|
$
|
(3)
|
$
|
1,638
|
$
|
–
|
||||||||
State and municipal
|
243
|
–
|
(5)
|
–
|
–
|
238
|
–
|
|||||||||||||||
Residential
|
||||||||||||||||||||||
mortgage-backed
|
47
|
–
|
(7)
|
–
|
6
|
46
|
–
|
|||||||||||||||
Commercial
|
||||||||||||||||||||||
mortgage-backed
|
115
|
–
|
(6)
|
(61)
|
–
|
48
|
–
|
|||||||||||||||
Asset-backed
|
1,447
|
4
|
4
|
78
|
(71)
|
1,462
|
–
|
|||||||||||||||
Corporate - non-U.S.
|
970
|
–
|
(48)
|
(10)
|
(42)
|
870
|
–
|
|||||||||||||||
Government
|
||||||||||||||||||||||
- non-U.S.
|
148
|
–
|
(21)
|
16
|
–
|
143
|
(7)
|
|||||||||||||||
U.S. government and
|
||||||||||||||||||||||
federal agency
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Retained interests
|
43
|
(1)
|
1
|
(2)
|
–
|
41
|
–
|
|||||||||||||||
Equity
|
||||||||||||||||||||||
Available-for-sale
|
16
|
–
|
(1)
|
–
|
–
|
15
|
–
|
|||||||||||||||
Trading
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Derivatives(d)
|
171
|
40
|
5
|
8
|
–
|
224
|
42
|
|||||||||||||||
Other
|
497
|
1
|
(45)
|
5
|
28
|
486
|
(1)
|
|||||||||||||||
Total
|
$
|
5,137
|
$
|
54
|
$
|
(112)
|
$
|
214
|
$
|
(82)
|
$
|
5,211
|
$
|
34
|
||||||||
(a)
|
Earnings effects are primarily included in the “Revenues from services” and “Interest” captions in the Condensed Statement of Current and Retained Earnings.
|
(b)
|
Transfers in and out of Level 3 are considered to occur at the beginning of the period. Transfers out of Level 3 were a result of increased use of quotes from independent pricing vendors based on recent trading activity.
|
(c)
|
Represented the amount of unrealized gains or losses for the period included in earnings.
|
(d)
|
Represented derivative assets net of derivative liabilities and included cash accruals of $35 million not reflected in the fair value hierarchy table.
|
(In millions)
|
Net realized/
|
Net change
|
||||||||||||||||||||
unrealized
|
in unrealized
|
|||||||||||||||||||||
gains (losses)
|
gains (losses)
|
|||||||||||||||||||||
Net realized/
|
included in
|
relating to
|
||||||||||||||||||||
unrealized
|
accumulated
|
Purchases,
|
Transfers
|
instruments
|
||||||||||||||||||
gains(losses)
|
other
|
issuances
|
in and/or
|
still held at
|
||||||||||||||||||
April 1,
|
included in
|
comprehensive
|
and
|
out of
|
June 30,
|
June 30,
|
||||||||||||||||
2009
|
earnings
|
(a)
|
income
|
settlements
|
Level 3
|
(b)
|
2009
|
2009
|
(c)
|
|||||||||||||
Investment securities
|
||||||||||||||||||||||
Debt
|
||||||||||||||||||||||
U.S. corporate
|
$
|
1,376
|
$
|
5
|
$
|
106
|
$
|
57
|
$
|
6
|
$
|
1,550
|
$
|
–
|
||||||||
State and municipal
|
89
|
–
|
44
|
(1)
|
25
|
157
|
–
|
|||||||||||||||
Residential
|
||||||||||||||||||||||
mortgage-backed
|
58
|
–
|
–
|
–
|
(7)
|
51
|
–
|
|||||||||||||||
Commercial
|
||||||||||||||||||||||
mortgage-backed
|
50
|
–
|
–
|
–
|
–
|
50
|
–
|
|||||||||||||||
Asset-backed
|
1,250
|
(4)
|
109
|
90
|
(14)
|
1,431
|
–
|
|||||||||||||||
Corporate - non-U.S.
|
444
|
(6)
|
48
|
(34)
|
–
|
452
|
–
|
|||||||||||||||
Government
|
||||||||||||||||||||||
- non-U.S.
|
124
|
–
|
15
|
3
|
–
|
142
|
–
|
|||||||||||||||
U.S. government and
|
||||||||||||||||||||||
federal agency
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Retained interests
|
6,444
|
350
|
127
|
604
|
–
|
7,525
|
124
|
|||||||||||||||
Equity
|
||||||||||||||||||||||
Available-for-sale
|
15
|
1
|
3
|
–
|
–
|
19
|
–
|
|||||||||||||||
Trading
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Derivatives(d)(e)
|
398
|
52
|
(22)
|
(60)
|
12
|
380
|
54
|
|||||||||||||||
Other
|
512
|
(9)
|
28
|
40
|
–
|
571
|
–
|
|||||||||||||||
Total
|
$
|
10,760
|
$
|
389
|
$
|
458
|
$
|
699
|
$
|
22
|
$
|
12,328
|
$
|
178
|
||||||||
(a)
|
Earnings effects are primarily included in the “Revenues from services” and “Interest” captions in the Condensed Statement of Current and Retained Earnings.
|
(b)
|
Transfers in and out of Level 3 are considered to occur at the beginning of the period. Transfers out of Level 3 were a result of increased use of quotes from independent pricing vendors based on recent trading activity.
|
(c)
|
Represented the amount of unrealized gains or losses for the period included in earnings.
|
(d)
|
Gains from derivatives were partially offset by $15 million in losses from related derivatives included in Level 2.
|
(e)
|
Represented derivative assets net of derivative liabilities and included cash accruals of $49 million not reflected in the fair value hierarchy table.
|
(In millions)
|
Net realized/
|
Net change
|
||||||||||||||||||||
unrealized
|
in unrealized
|
|||||||||||||||||||||
gains (losses)
|
gains (losses)
|
|||||||||||||||||||||
Net realized/
|
included in
|
relating to
|
||||||||||||||||||||
unrealized
|
accumulated
|
Purchases,
|
Transfers
|
instruments
|
||||||||||||||||||
gains(losses)
|