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FINANCIAL INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Information About Assets and Liabilities Not Carried at Fair Value
The following table provides information about assets and liabilities not carried at fair value. The table excludes finance leases and non-financial assets and liabilities. Substantially all of the assets discussed below are considered to be Level 3. The vast majority of our liabilities’ fair value can be determined based on significant observable inputs and thus considered Level 2. Few of the instruments are actively traded and their fair values must often be determined using financial models. Realization of the fair value of these instruments depends upon market forces beyond our control, including marketplace liquidity.
 
June 30, 2017
 
December 31, 2016
(In millions)
Carrying
amount
(net)

Estimated
fair value

 
Carrying
amount
(net)

Estimated
fair value

 
 
 
 
 
 
GE
 
 
 
 
 
Assets
 
 
 
 
 
Investments and notes receivable
$
1,305

$
1,355

 
$
1,526

$
1,595

Liabilities
 
 
 
 
 
Borrowings(a)(b)
29,650

30,455

 
19,184

19,923

Borrowings (debt assumed)(a)(c)
52,291

59,603

 
60,109

66,998

 
 
 
 
 
 
GE Capital
 
 
 
 
 
Assets
 
 
 
 
 
Loans
19,740

19,774

 
21,060

20,830

Other commercial mortgages
1,471

1,554

 
1,410

1,472

Loans held for sale
604

604

 
473

473

Other financial instruments(d)
116

149

 
121

150

Liabilities
 
 
 
 
 
Borrowings(a)(e)(f)(g)
54,691

58,752

 
58,523

62,024

Investment contracts
2,671

3,130

 
2,813

3,277

(a)
See Note 10.
(b)
Included $107 million and $115 million of accrued interest in estimated fair value at June 30, 2017 and December 31, 2016, respectively.
(c)
Included $553 million and $803 million of accrued interest in estimated fair value at June 30, 2017 and December 31, 2016, respectively.
(d)
Principally comprises cost method investments.
(e)
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, 2017 and December 31, 2016 would have been reduced by $2,478 million and $2,397 million, respectively.
(f)
Included $808 million and $775 million of accrued interest in estimated fair value at June 30, 2017 and December 31, 2016, respectively.
(g)
Excluded $48,216 million and $58,780 million of net intercompany payable to GE at June 30, 2017 and December 31, 2016, respectively
Schedule of Notional Amounts of Loan Commitments
NOTIONAL AMOUNTS OF LOAN COMMITMENTS
 
 
 
 
 
(In millions)
June 30, 2017

December 31, 2016

 
 
 
Ordinary course of business lending commitments(a)
$
789

$
687

Unused revolving credit lines
229

238

(a)
Excluded investment commitments of $259 million and $522 million at June 30, 2017 and December 31, 2016, respectively.
Schedule of Financial Statement Effects - Cash Flow Hedges
FINANCIAL STATEMENT EFFECTS - CASH FLOW HEDGES
 
Three months ended June 30
 
Six months ended June 30
(In millions)
2017

2016

 
2017

2016

 
 
 
 
 
 
Balance sheet changes
 
 
 
 
 
Fair value of derivatives increase (decrease)
$
34

$
11

 
$
56

$
(45
)
Shareowners' equity (increase) decrease
(34
)
(12
)
 
(56
)
45

 
 
 
 
 
 
Earnings (loss) related to ineffectiveness
—

—

 
—

1

Earnings (loss) effect of derivatives(a)
65

14

 
64

(71
)
(a)
Offsets earnings effect of the hedged forecasted transaction
Schedule of Financial Statement Effects - Fair Value Hedges
FINANCIAL STATEMENT EFFECTS - FAIR VALUE HEDGES
 
 
 
 
 
 
 
 
 
 
Three months ended June 30
Six months ended June 30
(In millions)
2017

2016

2017

2016

 
 
 
 
 
Balance sheet changes
 
 
 
 
Fair value of derivative increase (decrease)
$
(57
)
$
888

$
(282
)
$
2,610

Adjustment to carrying amount of hedged debt (increase) decrease
2

(933
)
164

(2,688
)
 
 
 
 
 
Earnings (loss) related to hedge ineffectiveness
(56
)
(46
)
(118
)
(77
)
Schedule of Financial Statement Effects - Net Investment Hedges
FINANCIAL STATEMENT EFFECTS - NET INVESTMENT HEDGES
 
Three months ended June 30
Six months ended June 30
(In millions)
2017

2016

2017

2016

 
 
 
 
 
Balance sheet changes
 
 
 
 
Fair value of derivatives increase (decrease)
$
(98
)
$
(282
)
$
(191
)
$
47

Fair value of non-derivative instruments (increase) decrease
(389
)
(322
)
(859
)
(49
)
Shareowners' equity (increase) decrease
490

609

1,063

40

 
 
 
 
 
Earnings (loss) related to
 
 
 
 
spot-forward differences and ineffectiveness
3

5

13

37

Earnings (loss) related to
 
 
 
 
reclassification upon sale or liquidation(a)
—

(380
)
59

(1,072
)
(a)
Included zero and $(380) million recorded in discontinued operations in the three months ended June 30, 2017 and 2016 and $59 million and $(1,072) million recorded in discontinued operations in the six months ended June 30, 2017 and 2016, respectively.
Schedule of Financial Statement Effects - Economic Hedges
FINANCIAL STATEMENT EFFECTS - ECONOMIC HEDGES
 
 
 
 
 
Three months ended June 30
Six months ended June 30
(In millions)
2017

2016

2017

2016

 
 
 
 
 
Balance sheet changes
 
 
 
 
Change in fair value of economic hedge increase (decrease)
$
979

$
157

$
641

$
(122
)
Change in carrying amount of item being hedged increase (decrease)
(1,180
)
(286
)
(956
)
(198
)
 
 
 
 
 
Earnings (loss) effect of economic hedges(a)
(200
)
(130
)
(315
)
(321
)
(a)
Offset by the future earnings effects of economically hedged item.
Schedule of Carrying Amounts Related to Derivatives
The table below provides additional information about how derivatives are reflected in our financial statements.
CARRYING AMOUNTS RELATED TO DERIVATIVES
 
 
(In millions)
June 30, 2017
December 31, 2016
 
 
 
Derivative assets
$
4,077

$
5,467

Derivative liabilities
(2,511
)
(4,883)
Accrued interest
484

792
Cash collateral & credit valuation adjustment
(1,599
)
(672)
Net Derivatives
451

703
Securities held as collateral
(432
)
(442)
Net amount
$
19

$
262
Schedule of Effects of Derivatives on Earnings
 
Three months ended June 30
Six months ended June 30
(In millions)
Effect on
hedging instrument
Effect on
underlying
Effect on
earnings
Effect on
hedging instrument
Effect on
underlying
Effect on
earnings
 
 
 
 
 
 
 
2017
 
 
 
 
 
 
Cash flow hedges
$
34

$
(34
)
$
—

$
56

$
(56
)
$
—

Fair value hedges
(57
)
2

(56
)
(282
)
164

(118
)
Net investment hedges(a)
(487
)
490

3

(1,050
)
1,063

13

Economic hedges(b)
979

(1,180
)
(200
)
641

(956
)
(315
)
Total


$
(253
)


$
(420
)
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
Cash flow hedges
$
11

$
(12
)
$
—

$
(45
)
$
45

$
1

Fair value hedges
888

(933
)
(46
)
2,610

(2,688
)
(77
)
Net investment hedges(a)
(604
)
609

5

(2
)
40

37

Economic hedges(b)
157

(286
)
(130
)
(122
)
(198
)
(321
)
Total


$
(171
)


$
(360
)


The amounts in the table above generally do not include associated derivative accruals in income or expense.

(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.