Supplemental Information

9 Months Ended

Sep. 30, 2016

Summary Of Derivative Instruments [Abstract]

NOTE 19. SUPPLEMENTAL INFORMATION

DERIVATIVES AND HEDGING

Note 15 provides the primary information related to our derivatives and hedging activity. This section provides certain supplemental information about this topic.

Changes in the fair value of derivatives are recorded in a separate component of equity (referred to below as Accumulated Other Comprehensive Income, or AOCI) and are recorded in earnings in the period in which the hedged transaction occurs. The table below summarizes this activity by hedging instrument.

FAIR VALUE OF DERIVATIVES

	September 30, 2016				December 31, 2015
(In millions)		Assets		Liabilities		Assets		Liabilities

Derivatives accounted for as hedges
Interest rate contracts	$	5,411	$	23	$	4,132	$	158
Currency exchange contracts		231		414		1,109		1,383
Other contracts		-		-		-		-
		5,642		437		5,241		1,541

Derivatives not accounted for as hedges
Interest rate contracts		128		23		119		44
Currency exchange contracts		1,111		3,506		1,715		4,048
Other contracts		96		22		315		49
		1,334		3,550		2,149		4,141

Gross derivatives recognized in statement of
financial position
Gross derivatives		6,976		3,988		7,391		5,681
Gross accrued interest		764		24		1,001		(13)
		7,740		4,012		8,392		5,668

Amounts offset in statement of financial position
Netting adjustments(a)		(2,367)		(2,358)		(4,326)		(4,326)
Cash collateral(b)		(4,154)		(931)		(1,784)		(642)
		(6,521)		(3,289)		(6,110)		(4,968)

Net derivatives recognized in statement of
financial position
Net derivatives		1,219		723		2,282		700

Amounts not offset in statement of
financial position
Securities held as collateral(c)		(741)		-		(1,277)		-

Net amount	$	478	$	723	$	1,005	$	700

Derivatives are classified in the captions “All other assets” and “All other liabilities” and the related accrued interest is classified in “Other GE Capital receivables” 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 include fair value adjustments related to our own and counterparty non-performance risk. At September 30, 2016 and December 31, 2015, the cumulative adjustment for non-performance risk was $(9) million and insignificant, respectively.

(b) Excluded excess cash collateral received and posted of $188 million and none at September 30, 2016, respectively, and $48 million and $379 million at December 31, 2015, respectively.

(c) Excluded excess securities collateral received of $47 million and $107 million at September 30, 2016 and December 31, 2015, respectively.

CASH FLOW HEDGE ACTIVITY
					Gain (loss) reclassified
	Gain (loss) recognized in AOCI				from AOCI into earnings
	for the three months ended September 30				for the three months ended September 30
(In millions)	2016		2015		2016		2015

Interest rate contracts	$	1	$	10	$	(12)	$	(39)
Currency exchange contracts		-		(132)		(46)		(69)
Commodity contracts		1		(2)		-		(1)
Total(a)	$	2	$	(124)	$	(57)	$	(109)

CASH FLOW HEDGE ACTIVITY
					Gain (loss) reclassified
	Gain (loss) recognized in AOCI				from AOCI into earnings
	for the nine months ended September 30				for the nine months ended September 30
(In millions)	2016		2015		2016		2015

Interest rate contracts	$	32	$	-	$	(67)	$	(100)
Currency exchange contracts		(76)		(757)		(59)		(589)
Commodity contracts		1		(4)		(3)		(2)
Total(a)	$	(43)	$	(761)	$	(128)	$	(691)

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

The total pre-tax amount in AOCI related to cash flow hedges of forecasted transactions was a $1 million gain at September 30, 2016. We expect to transfer $86 million loss to earnings as an expense in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions. In both the nine months ended 2016 and 2015, 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, 2016 and 2015, the maximum term of derivative instruments that hedge forecasted transactions was 16 years and 17 years, respectively. See Note12 for additional information about reclassifications out of AOCI.

For cash flow hedges, the amount of ineffectiveness in the hedging relationship and amount of the changes in fair value of the derivatives that are not included in the measurement of ineffectiveness were insignificant for each reporting period.