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Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2012

Estimated fair value of assets and liabilities

	At
	September 30, 2012						December 31, 2011
			Assets (liabilities)						Assets (liabilities)
			Carrying						Carrying
	Notional		amount		Estimated		Notional		amount		Estimated
(In millions)	amount		(net)		fair value		amount		(net)		fair value


GE
Assets
Investments and notes
receivable	$	(a)	$	188	$	188	$	(a)	$	285	$	285
Liabilities
Borrowings		(a)		(12,057)		(13,047)		(a)		(11,589)		(12,535)
GECC
Assets
Loans		(a)		237,565		239,198		(a)		250,999		251,433
Other commercial mortgages		(a)		1,616		1,692		(a)		1,494		1,537
Loans held for sale		(a)		494		501		(a)		496		497
Other financial instruments(c)		(a)		2,001		2,450		(a)		2,071		2,534
Liabilities
Borrowings and bank
deposits(b)(d)		(a)		(420,356)		(436,189)		(a)		(443,097)		(449,403)
Investment contract benefits		(a)		(3,356)		(4,208)		(a)		(3,493)		(4,240)
Guaranteed investment
contracts		(a)		(1,695)		(1,730)		(a)		(4,226)		(4,266)
Insurance – credit life(e)		2,178		(114)		(97)		1,944		(106)		(88)

(a) These financial instruments do not have notional amounts.

(b) See Note 8.

(d) Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at September 30, 2012 and December 31, 2011 would have been reduced by $8,357 million and $9,051 million, respectively.

(e) Net of reinsurance of $2,000 million at both September 30, 2012 and December 31, 2011.

Loan commitments

Loan Commitments
	Notional amount at
	September 30,		December 31,
(In millions)	2012		2011

Ordinary course of business lending commitments(a)	$	3,205	$	3,756
Unused revolving credit lines(b)
Commercial(c)		16,912		18,757
Consumer – principally credit cards		268,759		257,646

(a) Excluded investment commitments of $2,007 million and $2,064 million as of September 30, 2012 and December 31, 2011, respectively.

(b) Excluded inventory financing arrangements, which may be withdrawn at our option, of $13,540 million and $12,354 million as of September 30, 2012 and December 31, 2011, respectively.

(c) Included commitments of $12,283 million and $14,057 million as of September 30, 2012 and December 31, 2011, respectively, associated with secured financing arrangements that could have increased to a maximum of $14,378 million and $17,344 million at September 30, 2012 and December 31, 2011, respectively, based on asset volume under the arrangement.

Fair value of derivatives by contract type

	At
	September 30, 2012				December 31, 2011
	Fair value				Fair value
(In millions)		Assets		Liabilities		Assets		Liabilities

Derivatives accounted for as hedges
Interest rate contracts	$	8,967		768	$	9,446	$	1,049
Currency exchange contracts		836		3,204		3,750		2,325
Other contracts		2		1		1		11
		9,805		3,973		13,197		3,385

Derivatives not accounted for as hedges
Interest rate contracts		364		195		319		241
Currency exchange contracts		2,140		761		1,748		1,274
Other contracts		408		67		381		137
		2,912		1,023		2,448		1,652

Netting adjustments(a)		(3,444)		(3,423)		(3,294)		(3,281)

Cash collateral(b)(c)		(3,939)		(710)		(2,310)		(1,027)

Total	$	5,334	$	863	$	10,041	$	729

Derivatives are classified in the captions “All other assets” and “All other liabilities” in our financial statements.

(a) The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts included fair value adjustments related to our own and counterparty non-performance risk. At September 30, 2012 and December 31, 2011, the cumulative adjustment for non-performance risk was a loss of $(21) million and $(13) million, respectively.

(b) Excludes excess cash collateral received of $69 million and $579 million at September 30, 2012 and December 31, 2011, respectively. Excludes excess cash collateral posted of $13 million at September 30, 2012.

(c) Excludes securities pledged to us as collateral of $6,241 million and $10,574 million at September 30, 2012 and December 31, 2011, respectively, which includes excess securities collateral of $347 million at September 30, 2012.

Fair value hedges

	Three months ended September 30
	2012				2011
(In millions)	Gain (loss)		Gain (loss)		Gain (loss)		Gain (loss)
	on hedging		on hedged		on hedging		on hedged
	derivatives		items		derivatives		items

Interest rate contracts	$	441	$	(552)	$	5,708	$	(5,829)
Currency exchange contracts		8		(10)		64		(74)

Fair value hedges resulted in $(113) million and $(131) million of ineffectiveness in the three months ended September 30, 2012 and 2011, respectively. In both the three months ended September 30, 2012 and 2011, there were insignificant amounts excluded from the assessment of effectiveness.

	Nine months ended September 30
	2012				2011
(In millions)	Gain (loss)		Gain (loss)		Gain (loss)		Gain (loss)
	on hedging		on hedged		on hedging		on hedged
	derivatives		items		derivatives		items

Interest rate contracts	$	1,226	$	(1,514)	$	5,318	$	(5,634)
Currency exchange contracts		(204)		192		103		(121)

Fair value hedges resulted in $(300) million and $(334) million of ineffectiveness in the nine months ended September 30, 2012 and 2011, respectively. In both the nine months ended September 30, 2012 and 2011, there were insignificant amounts excluded from the assessment of effectiveness.

Cash flow hedges

					Gain (loss) reclassified
	Gain (loss) recognized in AOCI				from AOCI into earnings
(In millions)	for the three months ended September 30				for the three months ended September 30
	2012		2011		2012		2011

Cash flow hedges
Interest rate contracts	$	(68)	$	(170)	$	(118)	$	(182)
Currency exchange contracts		301		(639)		204		(575)
Commodity contracts		4		(4)		(1)		1
Total	$	237	$	(813)	$	85	$	(756)

					Gain (loss) reclassified
	Gain (loss) recognized in AOCI				from AOCI into earnings
(In millions)	for the nine months ended September 30				for the nine months ended September 30
	2012		2011		2012		2011


Cash flow hedges
Interest rate contracts	$	(147)	$	(287)	$	(384)	$	(660)
Currency exchange contracts		(97)		125		(214)		377
Commodity contracts		8		(2)		(3)		9
Total	$	(236)	$	(164)	$	(601)	$	(274)

The total pre-tax amount in AOCI related to cash flow hedges of forecasted transactions was a $1,074 million loss at September 30, 2012. We expect to transfer $471 million to earnings as an expense in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions. In the three and nine months ended September 30, 2012 and 2011, we recognized insignificant gains and losses related to hedged forecasted transactions and firm commitments that did not occur by the end of the originally specified period. At September 30, 2012 and 2011, the maximum term of derivative instruments that hedge forecasted transactions was 20 years and 21 years, respectively.

Net investment hedges

	Gain (loss) recognized in CTA				Gain (loss) reclassified from CTA
(In millions)	for the three months ended September 30				for the three months ended September 30
	2012		2011		2012		2011
Net investment hedges
Currency exchange contracts	$	(2,939)	$	1,948	$	39	$	(15)

	Gain (loss) recognized in CTA				Gain (loss) reclassified from CTA
(In millions)	for the nine months ended September 30				for the nine months ended September 30
	2012		2011		2012		2011
Net investment hedges
Currency exchange contracts	$	(2,588)	$	(1,458)	$	27	$	(713)