Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2011

										Netting
(In millions)	Level 1		(a)	Level 2		(a)	Level 3		(b)	adjustment		(c)	Net balance

June 30, 2011
Assets
Investment securities
Debt
U.S. corporate	$	0		$	19,415		$	3,097		$	0		$	22,512
State and municipal		0			2,849			209			0			3,058
Residential mortgage-backed		0			2,643			45			0			2,688
Commercial mortgage-backed		0			2,843			7			0			2,850
Asset-backed		0			609			3,132			0			3,741
Corporate – non-U.S.		76			1,239			1,537			0			2,852
Government – non-U.S.		804			1,618			274			0			2,696
U.S. government and federal agency		0			3,112			224			0			3,336
Retained interests		0			0			45			0			45
Equity
Available-for-sale		1,047			18			22			0			1,087
Trading		475			0			0			0			475
Derivatives(d)		0			10,457			333			(3,583)			7,207
Other(e)		0			0			1,149			0			1,149
Total	$	2,402		$	44,803		$	10,074		$	(3,583)		$	53,696

Liabilities
Derivatives	$	0		$	5,896		$	43		$	(3,573)		$	2,366
Other(f)		0			908			0			0			908
Total	$	0		$	6,804		$	43		$	(3,573)		$	3,274

December 31, 2010
Assets
Investment securities
Debt
U.S. corporate	$	0		$	19,374		$	3,199		$	0		$	22,573
State and municipal		0			2,499			225			0			2,724
Residential mortgage-backed		47			2,696			66			0			2,809
Commercial mortgage-backed		0			2,875			49			0			2,924
Asset-backed		0			690			2,540			0			3,230
Corporate – non-U.S.		89			1,292			1,486			0			2,867
Government – non-U.S.		777			1,333			156			0			2,266
U.S. government and federal agency		0			3,158			210			0			3,368
Retained interests		0			0			39			0			39
Equity
Available-for-sale		677			20			24			0			721
Trading		417			0			0			0			417
Derivatives(d)		0			10,997			359			(3,867)			7,489
Other(e)		0			0			906			0			906
Total	$	2,007		$	44,934		$	9,259		$	(3,867)		$	52,333

Liabilities
Derivatives	$	0		$	6,553		$	103		$	(3,857)		$	2,799
Other(f)		0			920			0			0			920
Total	$	0		$	7,473		$	103		$	(3,857)		$	3,719

(a) The fair value of securities transferred between Level 1 and Level 2 was $67 million during the six months ended June 30, 2011.

(b) Level 3 investment securities valued using non-binding broker quotes totaled $1,038 million and $1,054 million at June 30, 2011 and December 31, 2010, 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) The fair value of derivatives included an adjustment for non-performance risk. At both June 30, 2011 and December 31, 2010, the cumulative adjustment was a loss of $10 million. See Note 16 for additional information on the composition of our derivative portfolio.

(e) Included private equity investments and loans designated under the fair value option.

(f) Primarily represented the liability associated with certain of our deferred incentive compensation plans.

Changes in level 3 instruments

Changes in Level 3 Instruments for the Three Months Ended June 30, 2011
																						Net
(In millions)																						change in
						Net realized/																unrealized
			Net			unrealized																gains
			realized/			gains (losses)																(losses)
			unrealized			included in																relating to
			gains			accumulated																instruments
			(losses)			other								Transfers			Transfers					still held at
	April 1,		included			comprehensive								into			out of			June 30,		June 30,
	2011		in earnings		(a)	income		Purchases		Sales		Settlements		Level 3		(b)	Level 3		(b)	2011		2011		(c)

Investment securities
Debt
U.S. corporate	$	3,120	$	14		$	3	$	30	$	(41)	$	(29)	$	0		$	0		$	3,097	$	0
State and municipal		210		0			0		0		0		(1)		0			0			209		0
Residential
mortgage-backed		118		0			(2)		1		0		0		0			(72)			45		0
Commercial
mortgage-backed		11		0			1		(1)		0		0		0			(4)			7		0
Asset-backed		2,826		(3)			(19)		409		(43)		(1)		0			(37)			3,132		0
Corporate – non-U.S.		1,479		(1)			28		0		0		(31)		62			0			1,537		0
Government
– non-U.S.		162		(16)			8		13		0		0		107			0			274		0
U.S. government and
federal agency		201		0			23		0		0		0		0			0			224		0
Retained interests		52		1			(4)		0		(2)		(2)		0			0			45		0
Equity
Available-for-sale		21		0			1		0		0		0		0			0			22		0
Trading		0		0			0		0		0		0		0			0			0		0
Derivatives(d)(e)		272		29			0		1		0		(5)		0			0			297		4
Other		987		43			12		112		0		(5)		0			0			1,149		39
Total	$	9,459	$	67		$	51	$	565	$	(86)	$	(74)	$	169		$	(113)		$	10,038	$	43

(a) Earnings effects are primarily included in the “GECS revenues from services” and “Interest and other financial charges” captions in the Condensed Statement of 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.

(d) Represented derivative assets net of derivative liabilities and included cash accruals of $7 million not reflected in the fair value hierarchy table.

(e) Gains (losses) included in net realized/unrealized gains (losses) included in earnings were offset by the earnings effects from the underlying items that were economically hedged. See Note 16.

Changes in Level 3 Instruments for the Three Months Ended June 30, 2010
(In millions)						Net realized/									Net change
						unrealized									in unrealized
						gains (losses)									gains (losses)
			Net realized/			included in									relating to
			unrealized			accumulated				Transfers					instruments
			gains(losses)			other		Purchases,		in and/or					still held at
	April 1,		included in			comprehensive		sales and		out of			June 30,		June 30,
	2010		earnings		(a)	income		settlements		Level 3		(b)	2010		2010		(c)

Investment securities
Debt
U.S. corporate	$	2,819	$	16		$	31	$	264	$	(6)		$	3,124	$	0
State and municipal		275		0			(5)		0		0			270		0
Residential
mortgage-backed		133		0			(7)		(1)		6			131		0
Commercial
mortgage-backed		119		0			(5)		(62)		3			55		0
Asset-backed		1,862		12			4		78		(71)			1,885		0
Corporate – non-U.S.		1,357		2			(57)		(22)		(53)			1,227		(7)
Government
– non-U.S.		136		0			(20)		0		0			116		0
U.S. government and
federal agency		244		0			(15)		(1)		0			228		0
Retained interests		43		(1)			1		(2)		0			41		0
Equity
Available-for-sale		19		0			(1)		0		(1)			17		1
Trading		0		0			0		0		0			0		0
Derivatives(d)		200		55			5		6		0			266		61
Other		827		(10)			(43)		28		28			880		(10)
Total	$	8,034	$	74		$	(112)	$	288	$	(94)		$	8,190	$	45

Earnings effects are primarily included in the “GECS revenues from services” and “Interest and other financial charges” captions in the Condensed Statement of Earnings.
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.
Represented the amount of unrealized gains or losses for the period included in earnings.
Represented derivative assets net of derivative liabilities and included cash accruals of $50 million not reflected in the fair value hierarchy table.

Changes in Level 3 Instruments for the Six Months Ended June 30, 2011
																						Net
(In millions)																						change in
						Net realized/																unrealized
			Net			unrealized																gains
			realized/			gains (losses)																(losses)
			unrealized			included in																relating to
			gains			accumulated																instruments
			(losses)			other								Transfers			Transfers					still held at
	January 1,		included			comprehensive								into			out of			June 30,		June 30,
	2011		in earnings		(a)	income		Purchases		Sales		Settlements		Level 3		(b)	Level 3		(b)	2011		2011		(c)

Investment securities
Debt
U.S. corporate	$	3,199	$	101		$	(20)	$	75	$	(155)	$	(103)	$	0		$	0		$	3,097	$	0
State and municipal		225		0			(5)		4		0		(4)		0			(11)			209		0
Residential
mortgage-backed		66		0			1		2		(4)		(1)		71			(90)			45		0
Commercial
mortgage-backed		49		0			1		6		0		0		3			(52)			7		0
Asset-backed		2,540		0			55		780		(152)		(11)		1			(81)			3,132		0
Corporate – non-U.S.		1,486		(28)			82		12		(28)		(60)		73			0			1,537		0
Government
– non-U.S.		156		(16)			14		13		0		0		107			0			274		0
U.S. government and
federal agency		210		0			14		0		0		0		0			0			224		0
Retained interests		39		(18)			30		0		(3)		(3)		0			0			45		0
Equity
Available-for-sale		24		0			0		0		0		0		1			(3)			22		0
Trading		0		0			0		0		0		0		0			0			0		0
Derivatives(d)(e)		265		57			4		5		0		(190)		150			6			297		35
Other		906		102			28		118		0		(5)		0			0			1,149		96
Total	$	9,165	$	198		$	204	$	1,015	$	(342)	$	(377)	$	406		$	(231)		$	10,038	$	131

Earnings effects are primarily included in the “GECS revenues from services” and “Interest and other financial charges” captions in the Condensed Statement of Earnings.
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.
Represented the amount of unrealized gains or losses for the period included in earnings.
Represented derivative assets net of derivative liabilities and included cash accruals of $7 million not reflected in the fair value hierarchy table.
Gains (losses) included in net realized/unrealized gains (losses) included in earnings were offset by the earnings effects from the underlying items that were economically hedged. See Note 16.

Changes in Level 3 Instruments for the Six Months Ended June 30, 2010
(In millions)							Net realized/									Net change
							unrealized									in unrealized
							gains (losses)									gains (losses)
				Net realized/			included in									relating to
				unrealized			accumulated				Transfers					instruments
				gains(losses)			other		Purchases,		in and/or					still held at
	January 1,			included in			comprehensive		sales and		out of			June 30,		June 30,
	2010		(a)	earnings		(b)	income		settlements		Level 3		(c)	2010		2010		(d)

Investment securities
Debt
U.S. corporate	$	3,068		$	32		$	81	$	(51)	$	(6)		$	3,124	$	0
State and municipal		205			0			69		(4)		0			270		0
Residential
mortgage-backed		123			0			10		(1)		(1)			131		0
Commercial
mortgage-backed		1,041			30			(3)		(1,013)		0			55		0
Asset-backed		1,872			21			27		62		(97)			1,885		0
Corporate – non-U.S.		1,331			(2)			(76)		169		(195)			1,227		(20)
Government
– non-U.S.		163			0			(22)		0		(25)			116		0
U.S. government and
federal agency		256			0			(27)		(1)		0			228		0
Retained interests		45			(1)			2		(5)		0			41		0
Equity
Available-for-sale		19			0			(1)		0		(1)			17		1
Trading		0			0			0		0		0			0		0
Derivatives(e)		236			143			(2)		(51)		(60)			266		88
Other		891			(25)			(66)		30		0			830		(19)
Total	$	9,250		$	198		$	(8)	$	(865)	$	(385)		$	8,190	$	50

(a) Included an increase of $1,015 million in debt securities, a reduction in retained interests of $8,782 million and a reduction in derivatives of $365 million related to adoption of ASU 2009-16 & 17.

(b) Earnings effects are primarily included in the “GECS revenues from services” and “Interest and other financial charges” captions in the Condensed Statement of Earnings.

(c) 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.

(d) Represented the amount of unrealized gains or losses for the period included in earnings.

(e) Represented derivative assets net of derivative liabilities and included cash accruals of $50 million not reflected in the fair value hierarchy table.

Non Recurring Fair Value Amounts As Measured At Time Of Adjustment For Those Assets Remeasured To Fair Value On Non Recurring Basis

	Remeasured during				Remeasured during
	the six months ended				the year ended
	June 30, 2011				December 31, 2010
(In millions)	Level 2		Level 3		Level 2		Level 3

Financing receivables and loans held for sale	$	20	$	5,955	$	54	$	6,833
Cost and equity method investments(a)		0		361		0		510
Long-lived assets, including real estate		644		2,810		1,025		5,811
Retained investments in formerly
consolidated subsidiaries(b)		0		0		0		113
Total	$	664	$	9,126	$	1,079	$	13,267

(a) Includes the fair value of private equity and real estate funds included in Level 3 of $59 million and $296 million at June 30, 2011 and December 31, 2010, respectively.

(b) During 2010, our retained investment in Regency Energy Partners L.P., a formerly consolidated subsidiary, was remeasured to a Level 1 fair value of $549 million.

Fair value adjustments to assets measured on a non-recurring basis

	Three months ended June 30				Six months ended June 30
(In millions)	2011		2010		2011		2010

Financing receivables and loans held for sale	$	(281)	$	(684)	$	(603)	$	(1,208)
Cost and equity method investments(a)		(127)		(40)		(176)		(94)
Long-lived assets, including real estate(b)		(346)		(738)		(867)		(1,339)
Retained investments in formerly consolidated
subsidiaries		0		183		0		183
Total	$	(754)	$	(1,279)	$	(1,646)	$	(2,458)

(a) Includes fair value adjustments associated with private equity and real estate funds of $(8) million and $(13) million in the three months ended June 30, 2011 and 2010, respectively, and $(13) million and $(26) million in the six months ended June 30, 2011 and 2010, respectively.

(b) Includes impairments related to real estate equity properties and investments recorded in other costs and expenses of $339 million and $522 million in the three months ended June 30, 2011 and 2010, respectively, and $776 million and $1,103 million in the six months ended June 30, 2011 and 2010, respectively.