Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2014

Estimated fair value of assets and liabilities

	2014						2013
			Assets (liabilities)						Assets (liabilities)
			Carrying						Carrying
	Notional		amount		Estimated		Notional		amount		Estimated
December 31 (In millions)	amount		(net)		fair value		amount		(net)		fair value

GE
Assets
Investments and notes
receivable	$	(a)	$	502	$	551	$	(a)	$	488	$	512
Liabilities
Borrowings(b)		(a)		(16,340)		(17,503)		(a)		(13,356)		(13,707)

GECC
Assets
Loans		(a)		193,214		197,833		(a)		206,839		211,137
Other commercial mortgages		(a)		1,427		1,508		(a)		1,609		1,619
Loans held for sale		(a)		1,830		1,855		(a)		512		512
Other financial instruments(c)		(a)		566		786		(a)		1,462		1,952
Liabilities
Borrowings and bank
deposits(b)(d)		(a)		(349,041)		(365,724)		(a)		(370,326)		(386,044)
Investment contract benefits		(a)		(2,970)		(3,565)		(a)		(3,144)		(3,644)
Guaranteed investment contracts		(a)		(1,000)		(1,031)		(a)		(1,471)		(1,459)
Insurance – credit life(e)		1,843		(90)		(77)		2,149		(108)		(94)

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

(b) See Note 10.

(d) Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at December 31, 2014 and 2013 would have been reduced by $5,020 million and $2,284 million, respectively.

(e) Net of reinsurance of $964 million and $1,250 million at December 31, 2014 and 2013, respectively.

Loan commitments

NOTIONAL AMOUNTS OF LOAN COMMITMENTS

December 31 (In millions)	2014		2013

Ordinary course of business lending commitments(a)	$	3,239	$	4,253
Unused revolving credit lines(b)
Commercial(c)		14,681		16,570
Consumer – principally credit cards		306,188		290,662

Excluded investment commitments of $835 million and $1,214 million at December 31, 2014 and 2013, respectively.
Excluded amounts related to inventory financing arrangements, which may be withdrawn at our option, of $15,041 million and $13,502 million at December 31, 2014 and 2013, respectively.
Included amounts related to commitments of $10,509 million and $11,629 million at December 31, 2014 and 2013, respectively, associated with secured financing arrangements that could have increased to a maximum of $12,353 million and $14,590 million at December 31, 2014 and 2013, respectively, based on asset volume under the arrangement.

Fair value of derivatives by contract type

FAIR VALUE OF DERIVATIVES

	2014				2013
December 31 (In millions)		Assets		Liabilities		Assets		Liabilities

Derivatives accounted for as hedges
Interest rate contracts	$	5,859	$	461	$	3,837	$	1,989
Currency exchange contracts		2,579		884		1,830		984
Other contracts		-		2		1		-
		8,438		1,347		5,668		2,973

Derivatives not accounted for as hedges
Interest rate contracts		186		137		132		168
Currency exchange contracts		1,212		3,450		2,257		2,245
Other contracts		256		55		284		42
		1,654		3,642		2,673		2,455

Gross derivatives recognized in statement of
financial position
Gross derivatives		10,092		4,989		8,341		5,428
Gross accrued interest		1,398		(18)		1,223		241
		11,490		4,971		9,564		5,669

Amounts offset in statement of financial position
Netting adjustments(a)		(3,896)		(3,905)		(4,120)		(4,113)
Cash collateral(b)		(3,709)		(502)		(2,619)		(242)
		(7,605)		(4,407)		(6,739)		(4,355)

Net derivatives recognized in statement of
financial position
Net derivatives		3,885		564		2,825		1,314

Amounts not offset in statement of
financial position
Securities held as collateral(c)		(3,268)		-		(1,962)		-

Net amount	$	617	$	564	$	863	$	1,314

Derivatives are classified in the captions “All other assets” and “All other liabilities” and the related accrued interest is classified in “Other GECC receivables” and “All other liabilities” in our financial statements.

The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts include fair value adjustments related to our own and counterparty non-performance risk. At December 31, 2014 and 2013, the cumulative adjustment for non-performance risk was a gain (loss) of $9 million and $(7) million, respectively.
Excluded excess cash collateral received and posted of $63 million and $211 million, and $160 million and $37 million at December 31, 2014 and 2013, respectively.
Excluded excess securities collateral received of $317 million and $363 million at December 31, 2014 and 2013, respectively.

Fair value hedges

EARNINGS EFFECTS OF FAIR VALUE HEDGING RELATIONSHIPS

	2014				2013
	Gain (loss)		Gain (loss)		Gain (loss)		Gain (loss)
	on hedging		on hedged		on hedging		on hedged
(In millions)	derivatives		items		derivatives		items

Interest rate contracts	$	3,898	$	(3,973)	$	(5,258)	$	5,180
Currency exchange contracts		(19)		17		(7)		6

Cash flow hedges

					Gain (loss) reclassified
	Gain (loss) recognized in AOCI				from AOCI into earnings
(In millions)	2014		2013		2014		2013

Interest rate contracts	$	(1)	$	(26)	$	(234)	$	(364)
Currency exchange contracts		(541)		941		(641)		817
Commodity contracts		(4)		(6)		(3)		(5)
Total(a)	$	(546)	$	909	$	(878)	$	448

(a) Gain (loss) is recorded in GECC revenues from services, interest and other financial charges, and other costs and expenses when reclassified to earnings.

Net investment hedges

GAINS (LOSSES) RECOGNIZED THROUGH CTA

	Gain (loss) recognized in CTA				Gain (loss) reclassified from CTA
(In millions)	2014		2013		2014		2013

Currency exchange contracts(a)	$	5,741	$	2,322	$	88	$	(1,525)

(a) Gain (loss) is recorded in GECC revenues from services when reclassified out of AOCI.