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Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2016

Summary Of Derivative Instruments [Abstract]

Estimated fair value of assets and liabilities

	June 30, 2016				December 31, 2015
	Carrying				Carrying
	amount		Estimated		amount		Estimated
(In millions)	(net)		fair value		(net)		fair value

GE
Assets
Investments and notes receivable	$	1,353	$	1,437	$	1,104	$	1,174
Liabilities
Borrowings(a)(b)		19,331		20,822		18,397		18,954
Borrowings (debt assumed)(a)(c)		70,188		79,727		84,704		92,231

GE Capital
Assets
Loans		18,992		18,850		20,061		19,774
Time deposits(d)		3,550		3,550		10,386		10,386
Other commercial mortgages		1,356		1,481		1,381		1,447
Loans held for sale		692		692		342		342
Other financial instruments(e)		91		122		94		110
Liabilities
Borrowings(a)(f)(g)(h)		68,138		70,790		95,474		99,396
Investment contracts		2,870		3,490		2,955		3,441

(a) See Note 9.

(b) Included $93 million and $116 million of accrued interest in estimated fair value at June 30, 2016 and December 31, 2015, respectively.

(c) Included $992 million and $1,006 million of accrued interest in estimated fair value at June 30, 2016 and December 31, 2015, respectively.

(d) Balances at June 30, 2016 and December 31, 2015 included $3,550 million and $10,386 million, respectively of high quality interest bearing deposits of global banks, that matured in April and July 2016.

(e) Principally comprises cost method investments.

(f) Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at June 30, 2016 and December 31, 2015 would have been reduced by $5,299 million and $3,001 million, respectively.

(g) Included $668 million and $1,103 million of accrued interest in estimated fair value at June 30, 2016 and December 31, 2015, respectively.

(h) Excluded $65,186 million and $84,704 million of intercompany payable to GE at June 30, 2016 and December 31, 2015 respectively, which includes a reduction for a $5,002 million short-term loan in second quarter of 2016 from GE Capital to GE, which bears the right of offset against amounts owed under the assumed debt agreement.

Loan commitments

NOTIONAL AMOUNTS OF LOAN COMMITMENTS

(In millions)	June 30, 2016		December 31, 2015

Ordinary course of business lending commitments(a)	$	448	$	531
Unused revolving credit lines		213		279

(a) Excluded investment commitments of $758 million and $782 million at June 30, 2016 and December 31, 2015, respectively.

Financial statements effects of cash flow hedges

FINANCIAL STATEMENT EFFECTS - CASH FLOW HEDGES

	Three months ended June 30				Six months ended June 30
(In millions)	2016		2015		2016		2015

Balance sheet changes
Fair value of derivatives increase (decrease)	$	11	$	446	$	(45)	$	(637)
Shareowners' equity (increase) decrease		(12)		(446)		45		637

Earnings (loss) related to ineffectiveness		-		-		1		-
Earnings (loss) effect of derivatives(a)		14		415		(71)		(582)

(a) Offsets earnings effect of the hedged forecasted transaction

Interest rate forwards/swaps	Interest rate increases	Interest rate decreases
Pay fixed rate/receive floating rate	Fair value increases	Fair value decreases

Currency forwards/swaps	U.S. dollar strengthens	U.S. dollar weakens
Pay U.S. dollars/receive foreign currency	Fair value decreases	Fair value increases

Commodity derivatives	Price increases	Price decreases
Receive commodity/ pay fixed price	Fair value increases	Fair value decreases

Financial statements effects of fair value hedges

FINANCIAL STATEMENT EFFECTS - FAIR VALUE HEDGES

	Three months ended June 30				Six months ended June 30
(In millions)	2016		2015		2016		2015

Balance sheet changes
Fair value of derivative increase (decrease)	$	888	$	(1,924)	$	2,610	$	(873)
Adjustment to carrying amount of hedged debt (increase) decrease		(933)		1,872		(2,688)		789

Earnings (loss) related to hedge ineffectiveness		(46)		(52)		(77)		(84)

Interest rate forwards/swaps	Interest rate increases	Interest rate decreases
Pay floating rate/receive fixed rate	Fair value decreases	Fair value increases

Financial statements effects of net investment hedges

FINANCIAL STATEMENT EFFECTS - NET INVESTMENT HEDGES

	Three months ended June 30				Six months ended June 30
(In millions)	2016		2015		2016		2015

Balance sheet changes
Fair value of derivatives increase (decrease)	$	(282)	$	(1,578)	$	47	$	3,367
Fair value of non-derivatives (increase) decrease		(318)		-		(120)		-
Shareowners' equity (increase) decrease		609		1,566		40		(3,423)

Earnings (loss) related to
spot-forward differences and ineffectiveness		8		(12)		(34)		(56)
Earnings (loss) related to
reclassification upon sale or liquidation(a)		(380)		(196)		(1,072)		589

(a) Included $(380) million and $(196) million recorded in discontinued operations in the three months ended June 30, 2016 and 2015, and $(1,072) million and $592 million recorded in discontinued operations in the six months ended June 30, 2016 and 2015, respectively.

Currency forwards/swaps		U.S. dollar strengthens		U.S. dollar weakens
Receive U.S. dollars/pay foreign currency		Fair value increases		Fair value decreases

Financial statements effects of economic hedges

FINANCIAL STATEMENT EFFECTS - ECONOMIC HEDGES

	Three months ended June 30				Six months ended June 30
(In millions)	2016		2015		2016		2015

Balance sheet changes
Change in fair value of economic hedge increase (decrease)	$	159	$	875	$	(143)	$	(2,243)
Change in carrying amount of item being hedged increase (decrease)		(288)		(981)		(177)		2,148

Earnings (loss) effect of economic hedges(a)		(130)		(106)		(321)		(95)

(a) Offset by the future earnings effects of economically hedged item.

Interest rate forwards/swaps interest rate	Interest rate increases	Interest rate decreases
Pay floating rate/receive fixed rate	Fair value decreases	Fair value increases

Currency forwards/swaps	U.S. dollar strengthens	U.S. dollar weakens
Pay U.S. dollars/receive foreign currency	Fair value decreases	Fair value increases
Receive U.S. dollars/pay foreign currency	Fair value increases	Fair value decreases

Commodity derivatives	Price increases	Price decreases
Receive commodity/ pay fixed price	Fair value increases	Fair value decreases

Carry amounts related to derivatives

CARRYING AMOUNTS RELATED TO DERIVATIVES

(In millions)	June 30, 2016		December 31, 2015

Derivative assets	$	7,709	$	7,391
Derivative liabilities		(4,477)		(5,681)
Accrued interest		728		1,014
Cash collateral & credit valuation adjustment		(2,991)		(1,141)
Net Derivatives		969		1,583
Securities held as collateral		(1,038)		(1,277)
Net amount	$	(69)	$	306

Effects of derivatives on earnings

		Three months ended June 30					Six months ended June 30
		Effect on		Effect on		Effect on		Effect on		Effect on		Effect on
(In millions)	hedging instrument			underlying	earnings		hedging instrument			underlying	earnings

2016
Cash flow hedges	$	11	$	(12)	$	-	$	(45)	$	45	$	1
Fair value hedges		888		(933)		(46)		2,610		(2,688)		(77)
Net investment hedges(a)		(600)		609		8		(73)		40		(34)
Economic hedges(b)		159		(288)		(130)		(143)		(177)		(321)
Total					$	(168)					$	(431)

2015
Cash flow hedges	$	446	$	(446)	$	-	$	(637)	$	637	$	-
Fair value hedges		(1,924)		1,872		(52)		(873)		789		(84)
Net investment hedges(a)		(1,578)		1,566		(12)		3,367		(3,423)		(56)
Economic hedges(b)		875		(981)		(106)		(2,243)		2,148		(95)
Total					$	(170)					$	(235)

(a) Both derivatives and non-derivatives hedging instruments are included.

(b) Net effect is substantially offset by the change in fair value of the hedged item that will affect earnings in future periods.