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Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2016

Summary Of Derivative Instruments [Abstract]

Estimated fair value of assets and liabilities

	September 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	$	1,388	$	1,458	$	1,104	$	1,174
Liabilities
Borrowings(a)(b)		19,823		21,363		18,397		18,954
Borrowings (debt assumed)(a)(c)		64,800		73,879		84,704		92,231

GE Capital
Assets
Loans		20,047		19,836		20,061		19,774
Time deposits(d)		-		-		10,386		10,386
Other commercial mortgages		1,417		1,536		1,381		1,447
Loans held for sale		497		497		342		342
Other financial instruments(e)		102		125		94		110
Liabilities
Borrowings(a)(f)(g)(h)		66,649		69,839		95,474		99,396
Investment contracts		2,822		3,420		2,955		3,441

(a) See Note 9.

(b) Included $166 million and $116 million of accrued interest in estimated fair value at September 30, 2016 and December 31, 2015, respectively.

(c) Included $682 million and $1,006 million of accrued interest in estimated fair value at September 30, 2016 and December 31, 2015, respectively.

(d) Balances at December 31, 2015 comprised 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 September 30, 2016 and December 31, 2015 would have been reduced by $5,060 million and $3,001 million, respectively.

(g) Included $878 million and $1,103 million of accrued interest in estimated fair value at September 30, 2016 and December 31, 2015, respectively.

(h) Excluded $59,798 million and $84,704 million of intercompany payable to GE at September 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)	September 30, 2016		December 31, 2015

Ordinary course of business lending commitments(a)	$	529	$	531
Unused revolving credit lines		200		279

(a) Excluded investment commitments of $800 million and $782 million at September 30, 2016 and December 31, 2015, respectively.

Financial statements effects of cash flow hedges

FINANCIAL STATEMENT EFFECTS - CASH FLOW HEDGES

	Three months ended September 30				Nine months ended September 30
(In millions)	2016		2015		2016		2015

Balance sheet changes
Fair value of derivatives increase (decrease)	$	2	$	(123)	$	(43)	$	(760)
Shareowners' equity (increase) decrease		(2)		124		43		761

Earnings (loss) related to ineffectiveness		-		1		-		1
Earnings (loss) effect of derivatives(a)		(57)		(109)		(128)		(691)

(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 September 30				Nine months ended September 30
(In millions)	2016		2015		2016		2015

Balance sheet changes
Fair value of derivative increase (decrease)	$	(116)	$	1,383	$	2,494	$	510
Adjustment to carrying amount of hedged debt (increase) decrease		37		(1,379)		(2,651)		(590)

Earnings (loss) related to hedge ineffectiveness		(79)		4		(156)		(80)

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 September 30				Nine months ended September 30
(In millions)	2016		2015		2016		2015

Balance sheet changes
Fair value of derivatives increase (decrease)	$	107	$	1,260	$	154	$	4,627
Fair value of non-derivatives (increase) decrease		450		-		330		-
Shareowners' equity (increase) decrease		(552)		(1,297)		(513)		(4,720)

Earnings (loss) related to
spot-forward differences and ineffectiveness		5		(37)		(28)		(93)
Earnings (loss) related to
reclassification upon sale or liquidation(a)		47		1,935		(1,025)		2,524

(a) Included $47 million and $1,935 million recorded in discontinued operations in the three months ended September 30, 2016 and 2015, and $(1,026) million and $2,527 million recorded in discontinued operations in the nine months ended September 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 September 30				Nine months ended September 30
(In millions)	2016		2015		2016		2015

Balance sheet changes
Change in fair value of economic hedge increase (decrease)	$	(692)	$	(486)	$	(835)	$	(2,729)
Change in carrying amount of item being hedged increase (decrease)		386		483		209		2,631

Earnings (loss) effect of economic hedges(a)		(306)		(3)		(626)		(98)

(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)	September 30, 2016		December 31, 2015

Derivative assets	$	6,976	$	7,391
Derivative liabilities		(3,988)		(5,681)
Accrued interest		740		1,014
Cash collateral & credit valuation adjustment		(3,232)		(1,141)
Net Derivatives		496		1,583
Securities held as collateral		(741)		(1,277)
Net amount	$	(245)	$	306

Effects of derivatives on earnings

		Three months ended September 30					Nine months ended September 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	$	2	$	(2)	$	-	$	(43)	$	43	$	-
Fair value hedges		(116)		37		(79)		2,494		(2,651)		(156)
Net investment hedges(a)		557		(552)		5		484		(513)		(28)
Economic hedges(b)		(692)		386		(306)		(835)		209		(626)
Total					$	(380)					$	(810)

2015
Cash flow hedges	$	(123)	$	124	$	1	$	(760)	$	761	$	1
Fair value hedges		1,383		(1,379)		4		510		(590)		(80)
Net investment hedges(a)		1,260		(1,297)		(37)		4,627		(4,720)		(93)
Economic hedges(b)		(486)		483		(3)		(2,729)		2,631		(98)
Total					$	(35)					$	(270)

(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.