Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2012

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

March 31, 2012
Assets
Investment securities
Debt
U.S. corporate	$	0		$	20,464		$	3,252	$	0		$	23,716
State and municipal		0			3,365			79		0			3,444
Residential mortgage-backed		0			2,403			107		0			2,510
Commercial mortgage-backed		0			2,980			1		0			2,981
Asset-backed(c)		0			915			4,404		0			5,319
Corporate – non-U.S.		74			1,197			1,249		0			2,520
Government – non-U.S.		1,111			1,110			52		0			2,273
U.S. government and federal agency		0			3,889			260		0			4,149
Retained interests		0			0			34		0			34
Equity
Available-for-sale		601			17			15		0			633
Trading		250			0			0		0			250
Derivatives(d)		0			11,702			333		(6,160)			5,875
Other(e)		0			0			816		0			816
Total	$	2,036		$	48,042		$	10,602	$	(6,160)		$	54,520

Liabilities
Derivatives	$	0		$	3,894		$	16	$	(3,401)		$	509
Other(f)		0			981			0		0			981
Total	$	0		$	4,875		$	16	$	(3,401)		$	1,490

December 31, 2011
Assets
Investment securities
Debt
U.S. corporate	$	0		$	20,535		$	3,235	$	0		$	23,770
State and municipal		0			3,157			77		0			3,234
Residential mortgage-backed		0			2,568			41		0			2,609
Commercial mortgage-backed		0			2,824			4		0			2,828
Asset-backed(c)		0			930			4,040		0			4,970
Corporate – non-U.S.		71			1,058			1,204		0			2,333
Government – non-U.S.		1,003			1,444			84		0			2,531
U.S. government and federal agency		0			3,805			253		0			4,058
Retained interests		0			0			35		0			35
Equity
Available-for-sale		730			18			17		0			765
Trading		241			0			0		0			241
Derivatives(d)		0			15,252			393		(5,604)			10,041
Other(e)		0			0			817		0			817
Total	$	2,045		$	51,591		$	10,200	$	(5,604)		$	58,232

Liabilities
Derivatives	$	0		$	5,010		$	27	$	(4,308)		$	729
Other(f)		0			863			0		0			863
Total	$	0		$	5,873		$	27	$	(4,308)		$	1,592

(a) There were no securities transferred between Level 1 and Level 2 during the three months ended March 31, 2012.

(b) The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists and when collateral is posted to us.

(c) Includes investments in our CLL business in asset-backed securities collateralized by senior secured loans of high-quality, middle-market companies in a variety of industries.

(d) The fair value of derivatives included an adjustment for non-performance risk. The cumulative adjustment was a loss of $21 million and $13 million at March 31, 2012 and December 31, 2011, respectively. 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 March 31, 2012
																						Net
(In millions)																						change in
						Net realized/																unrealized
			Net			unrealized																gains
			realized/			gains (losses)																(losses)
			unrealized			included in																relating to
	Balance		gains			accumulated														Balance		instruments
	at		(losses)			other								Transfers			Transfers			at		still held at
	January 1,		included			comprehensive								into			out of			March 31,		March 31,
	2012		in earnings		(a)	income		Purchases		Sales		Settlements		Level 3		(b)	Level 3		(b)	2012		2012		(c)

Investment securities
Debt
U.S. corporate	$	3,235	$	26		$	38	$	13	$	(31)	$	(16)	$	0		$	(13)		$	3,252	$	0
State and municipal		77		0			2		0		0		0		0			0			79		0
Residential
mortgage-backed		41		(3)			3		0		0		(1)		68			(1)			107		0
Commercial
mortgage-backed		4		0			0		0		0		0		0			(3)			1		0
Asset-backed		4,040		(4)			42		341		(31)		0		16			0			4,404		0
Corporate – non-U.S.		1,204		(9)			60		10		0		(26)		14			(4)			1,249		0
Government
– non-U.S.		84		(34)			35		52		(71)		(14)		0			0			52		0
U.S. government and
federal agency		253		0			7		0		0		0		0			0			260		0
Retained interests		35		0			(4)		5		(1)		(1)		0			0			34		0
Equity
Available-for-sale		17		0			(1)		0		0		(1)		0			0			15		0
Derivatives(d)(e)		369		0			1		(2)		0		(2)		0			(45)			321		(3)
Other		817		5			0		1		(7)		0		0			0			816		5
Total	$	10,176	$	(19)		$	183	$	420	$	(141)	$	(61)	$	98		$	(66)		$	10,590	$	2

(a) Earnings effects are primarily included in the “GECC 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 $4 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 March 31, 2011
						Net																Net
(In millions)						realized/																change in
						unrealized																unrealized
			Net			gains																gains
			realized/				(losses)															(losses)
			unrealized			included in																relating to
	Balance		gains			accumulated														Balance		instruments
	at		(losses)			other								Transfers			Transfers			at		still held at
	January 1,		included			comprehensive								into			out of			March 31,		March 31,
	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	$	87		$	(23)	$	45	$	(114)	$	(74)	$	0		$	0		$	3,120	$	0
State and municipal		225		0			(5)		4		0		(3)		0			(11)			210		0
Residential
mortgage-backed		66		0			3		1		(4)		(1)		71			(18)			118		0
Commercial
mortgage-backed		49		0			0		7		0		0		3			(48)			11		0
Asset-backed		2,540		3			74		371		(109)		(10)		1			(44)			2,826		0
Corporate
– non-U.S.		1,486		(27)			54		12		(28)		(29)		11			0			1,479		0
Government
– non-U.S.		156		0			6		0		0		0		0			0			162		0
U.S. government and
federal agency		210		0			(9)		0		0		0		0			0			201		0
Retained interests		39		(19)			34		0		(1)		(1)		0			0			52		0
Equity
Available-for-sale		24		0			(1)		0		0		0		1			(3)			21		0
Trading		0		0			0		0		0		0		0			0			0		0
Derivatives(d)(e)		265		28			4		4		0		(185)		150			6			272		33
Other		906		59			16		6		0		0		0			0			987		57
Total	$	9,165	$	131		$	153	$	450	$	(256)	$	(303)	$	237		$	(118)		$	9,459	$	90

Earnings effects are primarily included in the “GECC 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 $12 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.

Non-recurring fair value amounts (as measured at the time of the adjustment) for those assets remeasured to fair value on a non-recurring basis

	Remeasured during				Remeasured during
	the three months ended				the year ended
	March 31, 2012				December 31, 2011
(In millions)	Level 2		Level 3		Level 2		Level 3

Financing receivables and loans held for sale	$	196	$	2,015	$	158	$	5,159
Cost and equity method investments(a)		0		73		0		403
Long-lived assets, including real estate		127		1,271		1,343		3,282
Total	$	323	$	3,359	$	1,501	$	8,844

(a) Includes the fair value of private equity and real estate funds included in Level 3 of $17 million and $123 million at March 31, 2012 and December 31, 2011, respectively.

Significant Unobservable Inputs Used For Level Three Recurring And Nonrecurring Measurements [Table Text Block]


	Fair value at				Range
	March 31,		Valuation	Unobservable	(weighted
(Dollars in millions)	2012		technique	inputs	average)

Recurring fair value measurements

Investment securities

Debt

U.S. corporate	$	1,539	Income approach	Discount rate(a)	2.0%-20.9% (10.3%)

Asset-backed		4,358	Income approach	Discount rate(a)	1.9%-18.0% (4.4%)

Corporate Non-U.S.		713	Income approach	Discount rate(a)	2.3%-27.2% (9.9%)

Other financial assets		381	Income approach	Weighted average	8.8%-11.5% (8.8%)
				cost of capital

Non-recurring fair value measurements

Financing receivables and loans held for sale	$	1,221	Income approach	Capitalization rate(b)	6.7%-12.8% (8.2%)

Cost and equity method investments		28	Income approach	Capitalization rate(b)	8.6% (8.6%)

Long-lived assets, including real estate		200	Income approach	Capitalization rate(b)	4.8%-10.6% (6.2%)

Discount rates are determined based on inputs that market participants would use when pricing investments, including credit and liquidity risk. An increase in the discount rate would result in a decrease in the fair value.
Represents the rate of return on net operating income which is considered acceptable for an investor and is used to determine a property's capitalized value. An increase in the capitalization rate would result in a decrease in the fair value.

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

	Three months ended March 31
(In millions)	2012		2011

Financing receivables and loans held for sale	$	(126)	$	(363)
Cost and equity method investments(a)		(21)		(50)
Long-lived assets, including real estate(b)		(152)		(568)
Total	$	(299)	$	(981)

(a) Includes fair value adjustments associated with private equity and real estate funds of $(3) million and $(5) million in the three months ended March 31, 2012 and 2011, respectively.

(b) Includes impairments related to real estate equity properties and investments recorded in other costs and expenses of $50 million and $436 million in the three months ended March 31, 2012 and 2011, respectively.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income, and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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