11-K 1 frm11k.htm FORM 11-K GE SAVINGS AND SECURITY PROGRAM

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

FORM 11-K
 
Annual Report Pursuant to Section 15(d) of the 
Securities Exchange Act of 1934
 
(Mark One)
 
þ Annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934 (No Fee Required)
 
For the fiscal year ended December 31, 2002
 
OR
 
o   Transition report pursuant to Section 15(d) of the Securities Exchange Act of 1934 (No Fee Required)
 
For the transition period from ___ to ___
 
Commission file number 1-35
 
A.  Full title of the plan and the address of the plan, if different from that of the issuer named below:
 
GE Savings and Security Program
  
B.  Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
  
General Electric Company
3135 Easton Turnpike
Fairfield, Connecticut 06828-0001
 

 


 
Required Information
   
A.   Financial Statements and Schedule: Page
   
   
Independent Auditors' Report 3
   
Financial Statements:
Statements of Net Assets Available for Plan Benefits as of December 31, 2002 and 2001 4
Statements of Changes in Net Assets Available for Plan Benefits for the Years Ended 
          December 31, 2002 and 2001
5
   
Notes to Financial Statements 6-11
   
Supplemental Schedule:
Schedule H, Line 4i – Schedule of Assets (Held at End of Year) as of December 31, 2002 12-20
  
    
B. Exhibits
   
23 Consent of Independent Auditors
   
99(a)     GE S&S Program Mutual Funds 2002 Annual Report (incorporated by reference to the General Electric S&S Program Mutual Fund Form N-30D for the year ended December 31, 2002, as filed with the Commission on March 4, 2003)
   
99(b) GE Institutional International Equity Fund 2002 Annual Report (incorporated by reference to the GE Institutional Funds Form N-30D for the year ended September 30, 2002, as filed with the Commission on December 4, 2002)
   
99(c) GE Institutional Small-Cap Value Equity Fund 2002 Annual Report (incorporated by reference to the GE Institutional Funds Form N-30D for the year ended September 30, 2002, as filed with the Commission on December 4, 2002)
   
99(d) GE Institutional Strategic Investment Fund 2002 Annual Report (incorporated by reference to the GE Institutional Funds Form N-30D for the year ended September 30, 2002, as filed with the Commission on December 4, 2002)

 


Signatures

          The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

 

GE Savings and Security Program
(Name of Plan)

 

Date:   June 23, 2003                                   /s/ Philip D. Ameen

    
Philip D. Ameen
Vice President and Comptroller

 


GE SAVINGS AND SECURITY PROGRAM

Financial Statements and Supplemental Schedule

December 31, 2002 and 2001

(With Independent Auditors' Report Thereon)


GE SAVINGS AND SECURITY PROGRAM

December 31, 2002 and 2001

Table of Contents

 

 

Page
Number(s)

 

Independent Auditors' Report

3

   

Financial Statements:

 

Statements of Net Assets Available for Plan Benefits
     as of December 31, 2002 and 2001

4

   

Statements of Changes in Net Assets Available for Plan Benefits
     for the Years Ended December 31, 2002 and 2001

5

   

Notes to Financial Statements

6-11

   

Supplemental Schedule: (i)

 

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)
     as of December 31, 2002

12-20

 

(i) Schedules required by Form 5500 that are not applicable have not been included.

- 2-


Independent Auditors' Report

General Electric Company, as administrator
     GE Savings and Security Program:

We have audited the accompanying statements of net assets available for plan benefits of GE Savings and Security Program (the Plan) as of December 31, 2002 and 2001, and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan as of December 31, 2002 and 2001, and the changes in net assets available for plan benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule H, line 4i - schedule of assets (held at end of year) as of December 31, 2002 is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan's management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

 

/s/ KPMG LLP


KPMG LLP
New York, New York
June 3, 2003

- 3 -


GE SAVINGS AND SECURITY PROGRAM

Statements of Net Assets Available for Plan Benefits

December 31, 2002 and 2001

(in thousands)

 

Assets

2002

2001

 

Investments at fair value (note 3) $17,814,242 $25,542,340
Accrued dividends and interest 85,380 84,783
Other assets 49 501


     Total assets 17,899,671 25,627,624


Liabilities
 
Liability for collateral deposits (note 3) 205,422 229,833
Other liabilities 8,320 6,635


     Total liabilities 213,742 236,468


Net assets available for plan benefits $17,685,929 $25,391,156


See accompanying notes to financial statements. 

- 4 -


GE SAVINGS AND SECURITY PROGRAM

Statements of Changes in Net Assets Available for Plan Benefits

Years Ended December 31, 2002 and 2001

(in thousands)

 

2002

2001



Additions (reductions) to net assets attributed to:
      Investment income:
           Net depreciation in fair value of investments (note 3) $(7,638,212) $(4,004,189)
 
           Interest and dividend income:
                General Electric Company Common Stock 336,580  311,725 
                Registered investment companies 121,017  171,317 
                Interest 93,688  126,539 


(7,086,927) (3,394,608)


           Contributions:
                Employee 854,520  805,642 
                Employer 286,980  273,890 


1,141,500  1,079,532 


                     Total reductions (5,945,427) (2,315,076)
 
Deductions from net assets attributed to:
      Participant withdrawals (1,759,800) (2,149,884)


           Net decrease (7,705,227) (4,464,960)
 
Net assets available for plan benefits:
      Beginning of year 25,391,156  29,856,116 


 
      End of year $17,685,929  $25,391,156 


 

See accompanying notes to financial statements. 

- 5 -


GE SAVINGS AND SECURITY PROGRAM

Notes to Financial Statements

December 31, 2002 and 2001

(1)     Description of the Plan

GE Savings and Security Program (the "Plan") is a defined contribution plan sponsored by General Electric Company. The Plan is subject to applicable provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). The Trustees of the Plan are officers of GE Asset Management Incorporated ("GEAM"), a wholly owned subsidiary of General Electric Company. GEAM is investment adviser to each of the Plan's investment options, except General Electric Company Common Stock, Vanguard Institutional Index Fund and the United States Savings Bonds. State Street Corporation and The Bank of New York are the primary custodians for Plan assets.

The following description of the Plan is provided for general information purposes only. The complete terms of the Plan are provided in the GE Savings and Security Program document (the "Plan Document"). Information concerning the Plan, including benefits, investment options, vesting provisions and effects of plan termination is included in plan handbooks and other material distributed to participants.

Employee Contributions and Investment Options

Eligible employees of General Electric Company and its participating affiliates may participate in the Plan by investing a portion of their earnings (generally up to 7% with employer partial matching and an additional 10% without any employer matching) in one or more of the following investment options generally through a trust established to administer the investment of program funds:

(a)   General Electric Company Common Stock ("GE Common Stock").

(b)   GE S&S Income Fund (the "Income Fund," formerly the GE S&S Long Term Interest Fund) – a registered investment company that invests primarily in a variety of investment grade debt securities, such as U.S. Government securities, mortgage backed securities, corporate bonds and money market instruments.

(c)   GE S&S Program Mutual Fund (the "Mutual Fund") – a registered investment company that invests primarily in equity securities of U.S. companies.

(d)   GE Institutional International Equity Fund (the "International Fund") – a registered investment company that invests primarily in equity securities of companies in countries other than the U.S.

(e)   GE Institutional Small-Cap Value Equity Fund (the "Small Cap Fund") – a registered investment company that invests primarily in equity securities of small-cap companies.

(f)   GE Institutional Strategic Investment Fund (the "Strategic Investment Fund") – a registered investment company that invests primarily in a combination of equity securities and investment grade debt securities.

(g)   Vanguard Institutional Index Fund (the "Index Fund") – a registered investment company that employs a passive management strategy designed to track the performance of the Standard and Poor's 500 Index.


 - 6 -


GE SAVINGS AND SECURITY PROGRAM

Notes to Financial Statements

December 31, 2002 and 2001

(h)   GE S&S Short-Term Interest Fund (the "Short Term Fund") – invests primarily in a variety of investment grade debt securities, such as U.S. Government securities, mortgage backed securities, asset-backed securities, corporate bonds and money market instruments.

(i)   GE S&S Money Market Fund (the "Money Market Fund") – invests primarily in short-term, U.S. dollar denominated money market instruments and other debt instruments that mature in one year or less.

(j)   United States Savings Bonds (the "U.S. Bond Fund") – consists of individual participants' investments in Series "EE" Savings Bonds issued by the U.S. Treasury. Pending accumulation of sufficient individual funds, investments are made in short-term money market instruments. Only participant after-tax contributions may be invested in the U.S. Bond Fund.

Audited financial statements and prospectuses or other disclosure documents of the registered investment companies are distributed annually to participants.

Participants may elect, up to twelve times a year, to switch their investments from one investment option to another or split the amount equally between two other investment options. The U.S. Bond Fund does not accept switches from other investment options and U.S. Savings Bonds purchased with after-tax contributions after 1988 cannot be switched to another investment.

The Internal Revenue Code sets out maximum limits on participant pre-tax contributions. The limit was $11,000 and $10,500 for 2002 and 2001, respectively.

Employer Contributions

The Plan generally provides for employer matching contributions of 50% of employees' contributions of up to 7% of their earnings which may be invested at the election of the participant in any one of the investment options except for the U.S. Bond Fund.

Rollovers and Transfers from Other Qualifying Plans

Subject to General Electric Company approval, participants may elect to roll over amounts from other qualifying plans or arrangements in accordance with the Internal Revenue Code. For the years ended December 31, 2002 and 2001, transfers from other qualifying plans or arrangements accounted for $53.0 million and $41.5 million, respectively, which are shown as employee contributions in the statements of changes in net assets available for plan benefits.

Withdrawals

Subject to certain limitations prescribed by the Plan and the Internal Revenue Code, terminated participants may elect retirement or other termination withdrawals in either lump sum or partial payments and currently employed participants may make up to seven withdrawals per year or certain hardship withdrawals from their participant accounts. Partial payments on termination are generally limited to four per year and a minimum of $500 each.

- 7 -


GE SAVINGS AND SECURITY PROGRAM

Notes to Financial Statements

December 31, 2002 and 2001

Loans to Participants

The Plan permits participants, under certain circumstances, to borrow a minimum of $500 from their participant accounts. Subject to certain Internal Revenue Code and Plan limits, such loans cannot exceed the lesser of 50% of the participant's available account value, as defined in the Plan Document, or $50,000, adjusted for prior loans. The interest rate applicable to participant loans is based on the monthly average of the composite yield on corporate bonds, as published by Moody's Investors Service.

A participant may have no more than two outstanding loans from the Plan at any time and may not obtain more than one such loan during any calendar year.

Loans are repaid with interest in equal payments over the term of the loan by payroll deductions, personal check or other such methods as may be required. Participants may repay the entire principal amount by check with written notice and without penalty beginning three months after the date of the loan.

In the event of a loan default, the Plan will report the outstanding loan balance as a withdrawal.

Vesting

Participants are fully vested in their employee and employer contributions.

Plan Termination and Amendment

Although General Electric Company has not expressed any intent to do so, it has the right under the Plan (subject to applicable contractual requirements) to discontinue its contributions, and to terminate the Plan in accordance with the provisions of ERISA. If the Plan is terminated, each participant's interest will be payable in full according to the Plan provisions. General Electric Company also has the right under the Plan (subject to applicable contractual requirements) to amend or replace it for any reason.

Administrative and Investment Advisory Costs

Administrative costs of the plan are generally borne by General Electric Company. Investment advisers are reimbursed for costs incurred or receive a management fee for providing investment advisory services to registered investment companies.

(2)     Summary of Significant Accounting Policies

(a)   Basis of Accounting

The accompanying financial statements have been prepared on the accrual basis of accounting.

(b)   Investments

Plan investments are stated at fair value. General Electric Company Common Stock is valued at the New York Stock Exchange closing price. Investments in registered investment companies are valued at the closing price on NASDAQ. Long-term U.S. government, agency and corporate debt, notes, bonds, and loans secured by mortgages are valued at current quoted market prices. Loans to participants bear interest at market rates and cost plus accrued interest approximates fair value. Short-term money market instruments, U.S. government, agency and corporate notes are valued at amortized cost, which approximates fair value. U.S. Savings Bonds are valued at the current cash redemption value published by the U.S. Treasury Department.

- 8 -


GE SAVINGS AND SECURITY PROGRAM

Notes to Financial Statements

December 31, 2002 and 2001

Investment transactions are recorded on a trade date basis. Dividends on General Electric Company Common Stock are recorded as of the record date. Interest income is earned from settlement date and recognized on the accrual basis.

The Income Fund may use various financial instruments, particularly forward foreign currency contracts, options, and futures, commonly referred to as derivatives, to manage its risk. The Income Fund does not engage in market-making or other speculative activities in the derivatives markets. Established practices require that derivative financial instruments relate to specific asset, liability, or equity transactions or to currency exposures. More detailed information regarding these financial instruments, as well as the strategies and policies for their use, is contained in the audited financial statements of the Income Fund which are distributed annually to participants.

(c)   Management Estimates and Assumptions

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

(3)     Investments

The Plan held the following individual investments whose aggregate fair value equaled or exceeded 5% of the Plan's net assets at December 31, 2002 and 2001:

 

 

Number of shares

Fair Value

2002  

(in thousands)

     
GE Common Stock 461,883,990 $11,246,822
GE S&S Income Fund 153,830,838 1,815,167
GE S&S Program Mutual Fund 53,946,471 1,895,095
     
2001    
     
GE Common Stock 466,575,268 $18,700,696
GE S&S Income Fund 147,693,485 1,661,537
GE S&S Program Mutual Fund 52,800,240 2,324,791

 

 

- 9 -


GE SAVINGS AND SECURITY PROGRAM

Notes to Financial Statements

December 31, 2002 and 2001

The Plan's investments appreciated (depreciated) as follows:

 

2002 2001


  (in thousands)
     
GE Common Stock $(7,233,036) $(3,726,681)
GE S&S Income Fund 82,916  25,511 
GE S&S Program Mutual Fund (480,092) (298,726)
GE Institutional International Equity Fund (28,062) (31,306)
United States Savings Bonds 6,657  7,975 
Other investments 13,405  19,038 


  $(7,638,212) $(4,004,189)


 

The Short Term Fund may, from time to time, lend securities to certain unrelated brokers. In the event the counterparty does not meet its contracted obligation to return securities used, the Short Term Fund may be exposed to the risk of reacquiring the securities at prevailing market prices in order to satisfy its obligations. The Short Term Fund receives collateral in the form of cash or securities, which may be supplemented by letters of credit, in an amount generally in excess of the market value of securities loaned. The Short Term Fund monitors the market value of the securities loaned on a daily basis with additional collateral obtained or refunded as necessary. The value of loaned securities, primarily U.S. Treasury obligations, amounted to $205.4 million and $229.8 million at December 31, 2002 and 2001, respectively. The value of cash collateral obtained and reinvested in short-term investments is reflected as a liability in the Plan's financial statements.

The Plan offers a number of investment options including GE Common Stock and a variety of pooled investment funds, some of which are registered investment companies. The investment funds include U.S. equities, international equities, and fixed income securities. Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility risk. Due to the level of risk associated with certain investment securities, it is reasonable to expect that changes in the values of investment securities will occur (including in the near term) and that such changes could materially affect participant account balances.

The Plan's exposure to a concentration of credit risk is limited by the diversification of investments across ten participant-directed fund elections. Additionally, the investments within each participant-directed fund election are further diversified into varied financial instruments, with the exception of the GE Common Stock and the U.S. Bond Fund, which invest in securities of a single issuer.

- 10 -


GE SAVINGS AND SECURITY PROGRAM

Notes to Financial Statements

December 31, 2002 and 2001

(4)     Tax Status

The Internal Revenue Service has notified General Electric Company by a letter dated April 30, 2002, that the Plan is qualified under the appropriate sections of the Internal Revenue Code. The Plan has been amended since that letter was issued. However, counsel for the Plan has no reason to believe that those amendments have adversely affected the validity of the determination letter.

The portion of a participant's compensation contributed to the Plan as a pre-tax contribution and General Electric Company's matching contribution are not subject to Federal income tax when such contributions are credited to participant accounts, subject to certain limitations. These amounts and any investment earnings may be included in the participant's gross taxable income for the year in which such amounts are withdrawn from the Plan.

(5)     Plan Amendments

Effective July 31, 2002, the Plan was amended to reflect the name change of the GE S&S Long Term Interest Fund to the GE S&S Income Fund. In addition, effective October 1, 2002, the GE Institutional Small-Cap Value Equity Fund, GE Institutional Strategic Investment Fund and Vanguard Institutional Index Fund became available as investment options for the Plan.

The Plan was also amended in 2001 primarily to comply with the requirements of the Economic Growth and Tax Relief Reconciliation Act. The amendments were generally effective January 1, 2002.

- 11 -


GE SAVINGS AND SECURITY PROGRAM

Schedule H, Line 4i – Schedule of Assets Held at End of Year)

As of December 31, 2002

 

Description   Cost   Market



Corporate Stocks - Common

General Electric Company*

(461,883,990

 shares)

$9,964,998,643

$11,246,822,487



Registered Investment Companies

GE S&S Income Fund**

(153,830,838

 shares)

1,744,699,786

1,815,167,249

GE S&S Program Mutual Fund**

(53,946,471

 shares)

2,546,862,181

1,895,095,101

GE Institutional International Equity Fund**

(15,378,949

 shares)

170,932,350

110,399,245

GE Institutional Small-Cap Value Equity Fund**

(1,647,705

 shares)

16,722,980

16,642,275

GE Institutional Strategic Investment Fund**

(709,597

 shares)

6,336,664

6,216,097

Vanguard Institutional Index Fund

(391,783

 shares)

31,698,675

31,526,083



     Total Registered Investment Companies

4,517,252,636

3,875,046,050



 

See accompanying notes to schedule of assets on page 20. (continued)

- 12 -


GE SAVINGS AND SECURITY PROGRAM

Schedule H, Line 4i – Schedule of Assets Held at End of Year)

As of December 31, 2002

Description Rate of Interest Maturity   Cost    Market





Short-Term Money Market Instruments

Interest Bearing Cash

Abbey National PLC

   1.760%

01/30/2003

$ 44,140,000

$ 44,140,000

ABN Amro Bank

1.330

01/06/2003

46,671,377

46,671,377

Bank of Montreal

1.620

01/29/2003

44,280,000

44,280,000

Bank One Corp.

1.340

02/03/2003

46,892,330

46,892,330

Barclays PLC.

1.320

02/27/2003

45,873,923

45,873,923

Bayerishe Hypo-und Vereinsbank AG

1.350

01/16/2003

3,500,000

3,500,000

Bayerishe Hypo-und Vereinsbank AG

1.790

01/16/2003

43,410,000

43,410,000

Canadian Imperial Bank of Commerce

1.320

02/07/2003

44,339,764

44,339,764

Citicorp

1.320

02/10/2003

42,697,285

42,697,285

Citicorp

1.330

02/10/2003

4,193,793

4,193,793

CS First Boston

1.720

01/08/2003

41,905,980

41,905,980

Dexia Bank NY

1.360

01/07/2003

46,660,000

46,660,000

Goldman Sachs Group LP

1.700

01/13/2003

41,856,268

41,856,268

JP Morgan Chase

1.340

01/15/2003

4,997,395

4,997,395

JP Morgan Chase

1.700

01/15/2003

41,892,286

41,892,286

Merrill Lynch & Co. Inc.

1.700

01/10/2003

41,912,179

41,912,179

Morgan Stanley Dean Witter Discover Capital I

1.350

01/21/2003

43,157,608

43,157,608

Societie Generale

1.320

02/18/2003

3,992,960

3,992,960

Societie Generale

1.335

02/18/2003

42,873,549

42,873,549

UBS AG

1.350

01/03/2003

46,656,501

46,656,501



     Total Interest Bearing Cash

721,903,198

721,903,198



Other

GEI Short-Term Investment Fund**

variable

n/a

147,617,925

147,617,925

Nesbit Burns - Bank of Montreal Repurchase Agreement

1.250

01/02/2003

56,270,000

56,270,000



     Total Other

203,887,925

203,887,925



     Total Short-Term Money Market Instruments

925,791,123

925,791,123



 

See accompanying notes to schedule of assets on page 20. (continued)

- 13 -


GE SAVINGS AND SECURITY PROGRAM

Schedule H, Line 4i – Schedule of Assets Held at End of Year)

As of December 31, 2002

Description Rate of Interest Maturity Cost Market





U.S. Government Securities

U. S. Government and Agency Debt Obligations

Federal Agricultural Mortgage Corp.

   1.710%

01/06/2003

$ 32,412,345

$ 32,412,345

 (a)

Federal Agricultural Mortgage Corp.

1.710

01/10/2003

9,675,898

9,675,898

 (a)

Federal Home Loan Bank

2.500

11/14/2003

38,917,845

38,917,845

Federal Home Loan Mortgage Corp.

1.280

01/02/2003

61,377,027

61,377,027

 (a)

Federal Home Loan Mortgage Corp.

1.280

04/02/2003

13,109,195

13,109,195

 (a)

Federal Home Loan Mortgage Corp.

1.310

05/22/2003

31,518,696

31,518,696

 (a)

Federal Home Loan Mortgage Corp.

1.900

06/19/2003

6,145,573

6,145,573

 (a)

Federal Home Loan Mortgage Corp.

2.000

07/15/2006

1,507

1,932

 (b)

Federal Home Loan Mortgage Corp.

2.360

04/25/2003

11,911,840

11,911,840

 (a)

Federal Home Loan Mortgage Corp.

5.500

07/15/2006

13,657,063

14,502,840

Federal Home Loan Mortgage Corp.

5.500

04/15/2021

16,923,457

16,788,750

Federal Home Loan Mortgage Corp.

6.000

12/01/2008

57,181

60,038

Federal Home Loan Mortgage Corp.

6.000

07/15/2024

14,842,953

14,821,964

Federal Home Loan Mortgage Corp.

6.500

04/15/2022

20,769,304

20,680,516

Federal Home Loan Mortgage Corp.

7.000

12/01/2017

5,544,379

5,612,479

Federal Home Loan Mortgage Corp.

7.000

04/01/2032

1,795,478

1,795,858

Federal Home Loan Mortgage Corp.

7.000

10/01/2023

261,107

260,445

Federal Home Loan Mortgage Corp.

7.000

06/01/2032

2,318,163

2,340,416

Federal Home Loan Mortgage Corp.

7.000

04/15/2012

7,615,425

7,531,780

Federal Home Loan Mortgage Corp.

7.000

03/15/2007

5,253,320

5,275,308

Federal Home Loan Mortgage Corp.

7.000

03/15/2007

8,558,494

8,619,521

Federal Home Loan Mortgage Corp.

7.375

05/15/2003

8,135,479

8,296,808

Federal Home Loan Mortgage Corp.

7.500

02/01/2032

2,265,205

2,293,319

Federal Home Loan Mortgage Corp.

7.500

03/01/2032

2,412,154

2,442,092

Federal Home Loan Mortgage Corp.

7.500

06/01/2032

5,877,722

5,904,896

Federal Home Loan Mortgage Corp.

7.500

11/01/2008

173,094

174,069

Federal Home Loan Mortgage Corp.

7.500

09/01/2029

1,786,237

1,800,760

Federal Home Loan Mortgage Corp.

7.500

01/01/2027

2,404,574

2,417,326

Federal Home Loan Mortgage Corp.

7.500

08/01/2031

1,372,525

1,388,821

Federal Home Loan Mortgage Corp.

7.500

06/01/2024

962,409

974,404

Federal Home Loan Mortgage Corp.

8.000

08/01/2022

468,898

473,707

Federal Home Loan Mortgage Corp.

8.000

05/01/2031

769,232

775,646

Federal Home Loan Mortgage Corp.

8.000

02/01/2032

828,896

836,523

Federal Home Loan Mortgage Corp.

8.000

07/01/2031

1,827,537

1,835,751

Federal Home Loan Mortgage Corp.

9.250

12/01/2016

1,100,338

1,100,338

 

See accompanying notes to schedule of assets on page 20. (continued)

- 14 -


GE SAVINGS AND SECURITY PROGRAM

Schedule H, Line 4i – Schedule of Assets Held at End of Year)

As of December 31, 2002

Description Rate of Interest Maturity Cost Market





U.S. Government Securities

U. S. Government and Agency Debt Obligations, continued

Federal Home Loan Mortgage Corp.

  43.498%

09/15/2005

$              189

$              868

 (b)

Federal Home Loan Mortgage Corp. (Class H)

6.375

10/15/2022

18,002,137

18,028,870

Federal Home Loan Mortgage Corp. (Class S)

16.169

10/15/2008

1,346,766

1,327,535

Federal National Mortgage Assoc.

1.510

10/17/2003

23,465,917

23,465,917

 (a)

Federal National Mortgage Assoc.

1.590

01/10/2003

41,748,516

41,748,516

Federal National Mortgage Assoc.

1.670

04/04/2003

3,684,181

3,684,181

 (a)

Federal National Mortgage Assoc.

4.250

07/15/2007

15,603,352

15,815,852

Federal National Mortgage Assoc.

4.375

10/15/2006

47,839,648

50,945,281

Federal National Mortgage Assoc.

5.500

02/15/2006

17,455,344

18,582,150

Federal National Mortgage Assoc.

5.780

10/25/2017

6,114,374

6,964,439

 (b)

Federal National Mortgage Assoc.

6.000

12/15/2005

36,001,660

39,099,947

Federal National Mortgage Assoc.

6.500

05/01/2032

1,496,158

1,496,214

Federal National Mortgage Assoc.

6.500

08/01/2031

1,175,317

1,177,903

Federal National Mortgage Assoc.

6.500

10/01/2031

2,170,303

2,175,078

Federal National Mortgage Assoc.

6.500

10/01/2032

3,594,931

3,595,657

Federal National Mortgage Assoc.

6.500

07/01/2032

3,887,795

3,887,942

Federal National Mortgage Assoc.

6.500

10/01/2032

988,731

989,507

Federal National Mortgage Assoc.

6.580

05/25/2020

936,230

251,305

 (b)

Federal National Mortgage Assoc.

7.000

07/15/2005

16,865,068

18,134,169

Federal National Mortgage Assoc.

7.000

10/01/2031

1,690,737

1,717,786

Federal National Mortgage Assoc.

7.000

05/01/2017

1,836,823

1,841,073

Federal National Mortgage Assoc.

7.000

04/01/2017

2,050,068

2,073,445

Federal National Mortgage Assoc.

7.000

03/01/2017

2,910,848

2,944,040

Federal National Mortgage Assoc.

7.000

02/01/2017

308,613

312,039

Federal National Mortgage Assoc.

7.000

02/01/2017

1,583,530

1,604,449

Federal National Mortgage Assoc.

7.000

03/01/2017

1,924,826

1,929,280

Federal National Mortgage Assoc.

7.000

07/01/2017

3,780,718

3,792,261

Federal National Mortgage Assoc.

7.000

07/01/2017

1,320,929

1,322,427

Federal National Mortgage Assoc.

7.000

03/01/2017

265,263

265,564

Federal National Mortgage Assoc.

7.000

03/01/2017

824,214

825,149

Federal National Mortgage Assoc.

7.000

07/01/2032

2,653,308

2,664,023

Federal National Mortgage Assoc.

7.000

04/01/2017

1,445,938

1,449,284

Federal National Mortgage Assoc.

7.000

04/01/2017

1,098,978

1,101,521

Federal National Mortgage Assoc.

7.000

10/01/2032

6,601,076

6,612,921

Federal National Mortgage Assoc.

7.000

11/01/2026

344,340

349,794

 

See accompanying notes to schedule of assets on page 20. (continued)

- 15 -


GE SAVINGS AND SECURITY PROGRAM

Schedule H, Line 4i – Schedule of Assets Held at End of Year)

As of December 31, 2002

Description Rate of Interest Maturity Cost Market





U.S. Government Securities

U. S. Government and Agency Debt Obligations, continued

Federal National Mortgage Assoc.

   7.000%

03/01/2029

$   657,241

$   665,311

Federal National Mortgage Assoc.

7.000

10/01/2029

364,629

369,440

Federal National Mortgage Assoc.

7.000

02/01/2019

301,608

297,646

Federal National Mortgage Assoc.

7.000

06/18/2013

1,323,976

1,377,744

Federal National Mortgage Assoc.

7.500

06/01/2031

572,462

576,194

Federal National Mortgage Assoc.

7.500

03/01/2032

2,762,881

2,795,459

Federal National Mortgage Assoc.

7.500

07/01/2027

2,274,967

2,287,198

Federal National Mortgage Assoc.

7.500

04/01/2032

969,265

977,926

Federal National Mortgage Assoc.

7.500

03/01/2032

5,651,689

5,702,187

Federal National Mortgage Assoc.

7.500

04/01/2032

4,307,515

4,346,002

Federal National Mortgage Assoc.

7.500

05/01/2032

5,147,591

5,212,669

Federal National Mortgage Assoc.

7.500

01/01/2031

733,581

739,412

Federal National Mortgage Assoc.

7.500

03/01/2032

1,534,364

1,550,377

Federal National Mortgage Assoc.

7.500

07/01/2032

1,412,983

1,415,230

Federal National Mortgage Assoc.

7.500

07/01/2032

7,860,561

7,862,630

Federal National Mortgage Assoc.

7.500

10/01/2032

2,719,250

2,710,521

Federal National Mortgage Assoc.

7.500

09/01/2022

143,970

143,763

Federal National Mortgage Assoc.

7.500

11/01/2022

520,233

526,260

Federal National Mortgage Assoc.

7.500

03/01/2023

107,557

107,315

Federal National Mortgage Assoc.

7.500

04/01/2023

721,877

728,188

Federal National Mortgage Assoc.

7.500

01/01/2025

787,430

794,365

Federal National Mortgage Assoc.

7.500

03/01/2027

3,588,480

3,583,891

Federal National Mortgage Assoc.

7.500

11/01/2021

1,751,977

1,748,398

Federal National Mortgage Assoc.

7.500

05/01/2029

1,001,206

1,005,548

Federal National Mortgage Assoc.

7.500

02/01/2031

564,159

567,837

Federal National Mortgage Assoc.

7.500

05/01/2026

991,040

998,435

Federal National Mortgage Assoc.

8.000

02/01/2032

1,198,915

1,214,834

Federal National Mortgage Assoc.

8.000

02/01/2032

886,915

891,985

Federal National Mortgage Assoc.

8.000

03/01/2032

7,725,391

7,769,550

Federal National Mortgage Assoc.

8.000

02/01/2032

2,621,896

2,632,183

Federal National Mortgage Assoc.

8.000

05/01/2032

596,139

607,550

Federal National Mortgage Assoc.

8.000

02/01/2032

949,175

956,560

Federal National Mortgage Assoc.

8.000

07/01/2032

5,334,209

5,327,685

Federal National Mortgage Assoc.

8.000

10/01/2032

2,114,866

2,106,916

Federal National Mortgage Assoc.

8.500

02/01/2032

522,095

522,896

 

See accompanying notes to schedule of assets on page 20. (continued)

- 16 -


GE SAVINGS AND SECURITY PROGRAM

Schedule H, Line 4i – Schedule of Assets Held at End of Year)

As of December 31, 2002

Description Rate of Interest Maturity Cost Market





U.S. Government Securities

U. S. Government and Agency Debt Obligations, continued

Federal National Mortgage Assoc.

   8.500%

03/01/2032

$    643,320

$    643,891

Federal National Mortgage Assoc.

8.500

09/01/2032

773,234

770,606

Federal National Mortgage Assoc.

8.500

04/01/2030

616,138

612,345

Federal National Mortgage Assoc.

9.000

12/01/2031

1,298,012

1,292,570

Federal National Mortgage Assoc.

9.000

08/01/2010

4,000,240

4,078,036

Federal National Mortgage Assoc.

9.000

03/01/2011

8,274,391

8,701,433

Federal National Mortgage Assoc. REMIC

7.113

08/25/2008

973,223

919,872

 (b)

Federal National Mortgage Assoc. REMIC

8.000

05/25/2007

11,499,758

11,509,281

Federal National Mortgage Assoc. REMIC (Class H)

6.000

10/25/2022

19,715,469

20,117,050

Federal National Mortgage Assoc. REMIC (Class H)

6.500

03/25/2022

18,256,169

18,005,258

Government National Mortgage Assoc.

7.000

05/15/2032

1,064,233

1,073,125

Government National Mortgage Assoc.

7.000

11/15/2032

1,581,754

1,575,240

Government National Mortgage Assoc.

7.000

03/15/2031

1,126,541

1,134,263

Government National Mortgage Assoc.

7.500

05/15/2031

1,887,497

1,904,120

Government National Mortgage Assoc.

7.500

03/15/2031

1,028,237

1,037,292

Government National Mortgage Assoc.

7.500

01/15/2031

3,377,484

3,407,228

Government National Mortgage Assoc.

7.500

01/15/2031

1,544,259

1,557,859

Government National Mortgage Assoc.

7.500

09/15/2031

1,386,046

1,398,252

Government National Mortgage Assoc.

7.500

07/15/2031

1,819,205

1,835,226

Government National Mortgage Assoc.

7.500

02/15/2009

3,472,682

3,684,804

Government National Mortgage Assoc.

7.500

12/15/2012

12,496,217

13,433,120

Government National Mortgage Assoc.

8.000

03/15/2032

1,240,956

1,253,891

Government National Mortgage Assoc.

9.000

12/15/2009

6,702,025

6,730,624

Government National Mortgage Assoc.

9.000

08/15/2009

3,401,455

3,344,504

Government National Mortgage Assoc.

9.000

11/15/2017

14,328,787

14,942,853

Government National Mortgage Assoc.

9.000

12/15/2009

25,297,689

26,774,145

Government National Mortgage Assoc.

9.500

12/15/2009

1,114,758

1,142,081

Government National Mortgage Assoc.

9.500

12/15/2009

6,794,180

6,902,762

Government National Mortgage Assoc.

9.500

12/15/2009

1,197,436

1,226,715

Student Loan Marketing Assoc.

5.000

06/30/2004

33,212,555

34,626,436

U.S. Treasury Notes

3.000

11/15/2007

77,253,199

78,033,681

U.S. Treasury Notes

4.375

05/15/2007

47,021,293

48,856,539



     Total U. S. Government and Agency Debt Obligations

991,187,911

1,009,896,320



 

See accompanying notes to schedule of assets on page 20. (continued)

- 17 -


GE SAVINGS AND SECURITY PROGRAM

Schedule H, Line 4i – Schedule of Assets Held at End of Year)

As of December 31, 2002

Description Units Cost Market




U.S. Government Securities

U.S. Savings Bonds

1963 U.S. Savings Bond E Series

59

$          1,106

$          12,635

1964 U.S. Savings Bond E Series

97

1,819

20,761

1965 U.S. Savings Bond E Series

99

1,856

17,858

1973 U.S. Savings Bond E Series

1,793

33,619

227,040

1974 U.S. Savings Bond E Series

2,571

48,206

311,078

1975 U.S. Savings Bond E Series

3,392

63,600

403,884

1976 U.S. Savings Bond E Series

4,240

79,500

496,855

1977 U.S. Savings Bond E Series

5,806

108,863

658,700

1978 U.S. Savings Bond E Series

9,748

182,775

853,767

1979 U.S. Savings Bond E Series

14,772

276,975

1,235,355

1980 U.S. Savings Bond EE Series

6,053

302,650

1,465,456

1981 U.S. Savings Bond EE Series

6,496

324,800

1,365,146

1982 U.S. Savings Bond EE Series

7,448

372,400

1,473,486

1983 U.S. Savings Bond EE Series

13,299

664,950

2,210,679

1984 U.S. Savings Bond EE Series

14,424

721,200

2,170,363

1985 U.S. Savings Bond EE Series

21,613

1,080,650

3,010,965

1986 U.S. Savings Bond EE Series

63,135

3,156,750

8,321,574

1987 U.S. Savings Bond EE Series

68,021

3,401,050

7,915,302

1988 U.S. Savings Bond EE Series

79,405

3,970,250

8,823,823

1989 U.S. Savings Bond EE Series

116,189

5,809,450

12,404,849

1990 U.S. Savings Bond EE Series

119,011

5,950,550

12,207,242

1991 U.S. Savings Bond EE Series

126,463

6,323,150

12,299,148

1992 U.S. Savings Bond EE Series

195,966

9,798,300

17,929,437

1993 U.S. Savings Bond EE Series

139,929

6,996,450

11,234,047

1994 U.S. Savings Bond EE Series

113,814

5,690,700

8,534,408

1995 U.S. Savings Bond EE Series

49,073

2,453,650

3,516,161

1996 U.S. Savings Bond EE Series

389

19,450

25,305

1997 U.S. Savings Bond EE Series

573

28,650

36,844

1998 U.S. Savings Bond EE Series

1,017

50,850

62,021

1999 U.S. Savings Bond EE Series

1,397

69,850

81,371

2000 U.S. Savings Bond EE Series

210,234

10,511,700

11,711,527

2001 U.S. Savings Bond EE Series

222,429

11,121,450

11,732,249

2002 U.S. Savings Bond EE Series

247,761

12,388,050

12,506,670



     Total U.S. Savings Bonds

92,005,269

155,276,006



     Total U.S. Government Securities

1,083,193,180

1,165,172,326



 

See accompanying notes to schedule of assets on page 20. (continued)

- 18 -


GE SAVINGS AND SECURITY PROGRAM

Schedule H, Line 4i – Schedule of Assets Held at End of Year)

As of December 31, 2002

Description Rate of Interest Maturity Cost    Market





Corporate Debt Instruments - Preferred

Goldman Sachs Group LP

   7.875%

01/15/2003

$     6,550,850

$     6,560,375

Merrill Lynch & Co. Inc.

1.730

01/14/2003

15,000,000

14,944,890

Merrill Lynch & Co. Inc.

1.955

01/14/2003

12,000,000

11,985,372



     Total Corporate Debt Instruments - Preferred

33,550,850

33,490,637



Loans to Participants

Various (66,302 loans)*

6.000-12.000

1 month to 15 years

376,491,928

376,491,928



Loans Secured by Mortgages

Advanta Mortgage Loan Trust

6.300

10/25/2003

897,428

916,255

American Express Credit Account Master Trust (Class A)

1.460

01/15/2003

6,850,000

6,850,110

Arran Master Trust (Class A)

1.550

03/15/2003

3,500,000

3,499,393

Asset Securitization Corp. (Class A)

6.500

02/14/2043

3,085,794

3,117,516

Bank of America Mortgage Securities (Class A)

6.500

04/25/2029

12,021,748

11,932,422

Bank One Issuance Trust (Class C)

3.760

08/15/2008

9,999,340

10,079,688

Capital Asset Research Funding LP

6.400

12/15/2003

583,851

590,445

Capital Auto Receivables Asset Trust (Class A)

1.470

01/15/2003

8,000,000

8,000,130

CDC Mortgage Capital Trust (Class A)

1.910

01/25/2003

1,496,384

1,498,577

Cendant Mortgage Corp.

6.182

08/25/2003

2,255,247

2,302,463

Cendant Mortgage Corp. (Class M)

6.182

08/25/2003

1,481,612

1,520,504

Compucredit Credit Card Trust

1.640

01/15/2003

3,000,000

2,999,622

CS First Boston Mortgage Corp.

5.660

04/15/2037

4,537,771

4,736,298

 (a, b)

CS First Boston Mortgage Corp.

6.500

11/25/2004

2,586,977

3,142,380

 (b)

Discover Card master Trust I (Class A)

5.300

11/16/2006

18,966,057

19,905,923

First USA Credit Card Master Trust (Class A)

1.510

01/19/2003

1,000,000

1,000,267

First USA Credit Card Master Trust (Class A)

1.570

01/17/2003

3,002,227

3,005,588

Ford Credit Auto Owner Trust (Class A)

7.090

11/17/2003

1,153,281

1,164,001

Ford Credit Auto Owner Trust (Class A)

1.510

01/15/2003

2,644,621

2,644,575

Green Tree Financial Corp.

6.900

04/15/2018

1,282,360

1,282,065

GS Mortgage Securities Corp. II

6.940

07/13/2030

793,187

797,788

Home Equity Mortgage Trust

7.000

12/25/2004

1,876,699

1,866,330

Household Automotive Trust (Class A)

1.610

01/17/2003

10,000,000

10,000,183

Impac CMB Trust (Class A)

1.850

01/25/2003

9,898,040

9,900,345

LB-UBS Commercial Mortgage Trust

1.370

07/15/2035

4,649,542

4,769,463

Lehman FHA Title I Loan Trust (Class A)

7.300

05/25/2017

166,066

167,007

 

See accompanying notes to schedule of assets on page 20. (continued)

- 19 -


GE SAVINGS AND SECURITY PROGRAM

Schedule H, Line 4i – Schedule of Assets Held at End of Year)

As of December 31, 2002

Description Rate of Interest Maturity Cost Market





Loans Secured by Mortgages, continued

MBNA Credit Card Master Note Trust (Class A)

   4.050%

01/15/2008

$       15,208,559

$       15,476,868

MBNA Master Credit Card Trust USA (Class A)

1.500

01/15/2003

4,000,000

3,999,696

Mellon Bank Premium Finance Loan Master Trust (Class A)

1.590

03/15/2003

2,000,000

2,001,290

Merrill Lynch Mortgage Investors Inc. (Class A)

1.940

01/25/2003

1,090,913

1,090,913

Metris Master Trust (Class A)

1.630

01/20/2003

4,000,000

3,979,830

Morgan Stanley Dean Witter Capital I

1.060

02/15/2033

2,220,546

2,073,917

Morgan Stanley Dean Witter Capital I

1.187

01/15/2039

4,581,025

4,786,549

Provident Bank Home Equity Loan Trust (Class A)

7.180

07/25/2004

925,409

978,798

Providian Gateway Master Trust (Class A)

1.640

01/15/2003

5,000,000

4,999,726

Residential Funding Mortgage Securities I (Class A)

7.500

11/25/2030

22,538,434

21,896,916

Residential Funding Mortgage Securities II (Class A)

1.520

01/25/2003

1,500,348

1,500,190

Sears Credit Account Master Trust (Class A)

1.818

01/15/2003

1,000,000

1,000,307

SMS Student Loan Trust (Class A)

1.720

01/25/2003

4,803,071

4,790,014

Superior Wholesale Inventory Financing Trust

1.510

01/15/2003

5,000,000

5,000,605



     Total Loans Secured by Mortgages

189,596,537

191,264,957



Other

Non-Interest Bearing Cash

n/a

n/a

162,948

162,948



     Total Investments

$17,091,037,845

$17,814,242,456



 

Notes to Schedule of Assets:

* Represents a party in interest to the Plan
** Funds managed by GEAM, a wholly owned subsidiary of General Electric Company.
(a) Coupon represents effective yield.
(b) Interest only securities represent the right to receive the monthly interest payments on an underlying pool of mortgages.

- 20 -