Intercompany Transactions

6 Months Ended

Jun. 30, 2011

Intercompany Transactions [Abstract]

Intercompany Transactions

19. Intercompany Transactions

Transactions between related companies are made on an arms-length basis, are eliminated and consist primarily of GE customer receivables sold to GECS; GECS services for trade receivables management and material procurement; buildings and equipment (including automobiles) leased between GE and GECS; information technology (IT) and other services sold to GECS by GE; aircraft engines manufactured by GE that are installed on aircraft purchased by GECS from third-party producers for lease to others; and various investments, loans and allocations of GE corporate overhead costs.

These intercompany transactions are reported in the GE and GECS columns of our financial statements, but are eliminated in deriving our consolidated financial statements. Effects of these eliminations on our consolidated cash flows from operating, investing and financing activities include the following. Net decrease (increase) in GE customer receivables sold to GECS of $525 million and $144 million have been eliminated from consolidated cash from operating and investing activities for the six months ended June 30, 2011 and 2010, respectively. Eliminations of intercompany borrowings (includes GE investment in GECS short-term borrowings, such as commercial paper) of $(71) million and $497 million have been eliminated from financing activities for the six months ended June 30, 2011 and 2010, respectively. Other reclassifications and eliminations of $(146) million and $(126) million have been eliminated from consolidated cash from operating activities and $253 million and $(181) million have been eliminated from consolidated cash from investing activities for the six months ended June 30, 2011 and 2010, respectively.