Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2014

Estimated fair value of assets and liabilities

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

GE
Assets
Investments and notes
receivable	$	(a)	$	486	$	533	$	(a)	$	488	$	512
Liabilities
Borrowings(b)		(a)		(16,016)		(16,824)		(a)		(13,356)		(13,707)
GECC
Assets
Loans		(a)		221,187		225,454		(a)		226,293		230,792
Other commercial mortgages		(a)		2,261		2,269		(a)		2,270		2,281
Loans held for sale		(a)		1,078		1,078		(a)		512		512
Other financial instruments(c)		(a)		1,541		2,201		(a)		1,622		2,203
Liabilities
Borrowings and bank
deposits(b)(d)		(a)		(365,223)		(381,050)		(a)		(371,062)		(386,823)
Investment contract benefits		(a)		(3,107)		(3,666)		(a)		(3,144)		(3,644)
Guaranteed investment contracts		(a)		(1,441)		(1,429)		(a)		(1,471)		(1,459)
Insurance – credit life(e)		2,163		(110)		(96)		2,149		(108)		(94)

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

(b) See Note 8.

(d) Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at March 31, 2014 and December 31, 2013 would have been reduced by $3,506 million and $2,284 million, respectively.

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

Loan commitments

Notional Amounts of Loan Commitments

(In millions)	March 31, 2014		December 31, 2013

Ordinary course of business lending commitments(a)	$	5,102	$	4,756
Unused revolving credit lines(b)
Commercial(c)		15,497		16,570
Consumer – principally credit cards		296,296		290,662

(a) Excluded investment commitments of $1,383 million and $1,395 million at March 31, 2014 and December 31, 2013, respectively.

(b) Excluded inventory financing arrangements, which may be withdrawn at our option, of $12,650 million and $13,502 million at March 31, 2014 and December 31, 2013, respectively.

(c) Included commitments of $11,952 million and $11,629 million at March 31, 2014 and December 31, 2013, respectively, associated with secured financing arrangements that could have increased to a maximum of $15,472 million and $14,590 million at March 31, 2014 and December 31, 2013, respectively, based on asset volume under the arrangement.

Fair value of derivatives by contract type

Fair Value of Derivatives

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

Derivatives accounted for as hedges
Interest rate contracts	$	4,187	$	1,350	$	3,837	$	1,989
Currency exchange contracts		1,330		1,183		1,830		984
Other contracts		1		2		1		-
		5,518		2,535		5,668		2,973

Derivatives not accounted for as hedges
Interest rate contracts		289		145		270		169
Currency exchange contracts		1,814		1,979		2,257		2,245
Other contracts		225		48		284		42
		2,328		2,172		2,811		2,456

Gross derivatives recognized in statement of
financial position
Gross derivatives		7,846		4,707		8,479		5,429
Gross accrued interest		1,183		41		1,227		241
		9,029		4,748		9,706		5,670

Amounts offset in statement of financial position
Netting adjustments(a)		(3,556)		(3,586)		(4,120)		(4,113)
Cash collateral(b)		(2,744)		(309)		(2,619)		(242)
		(6,300)		(3,895)		(6,739)		(4,355)

Net derivatives recognized in statement of
financial position
Net derivatives		2,729		853		2,967		1,315

Amounts not offset in statement of
financial position
Securities held as collateral(c)		(1,655)		-		(1,962)		-

Net amount	$	1,074	$	853	$	1,005	$	1,315

Derivatives are classified in 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.

(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 March 31, 2014 and December 31, 2013, the cumulative adjustment for non-performance risk was a gain (loss) of $30 million and $(7) million, respectively.

(b) Excludes excess cash collateral received and posted of $177 million and $56 million at March 31, 2014, respectively, and $160 million and $37 million at December 31, 2013, respectively.

(c) Excludes excess securities collateral received of $75 million and $363 million at March 31, 2014 and December 31, 2013, respectively.

Fair value hedges

Earnings Effect of Fair Value Hedging Relationships

	Three months ended March 31
	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	$	990	$	(1,005)	$	(914)	$	881
Currency exchange contracts		2		(3)		(9)		8

Cash flow hedges

					Gain (loss) reclassified
	Gain (loss) recognized in AOCI				from AOCI into earnings
	for the three months ended March 31				for the three months ended March 31
(In millions)	2014		2013		2014		2013

Interest rate contracts	$	3	$	(11)	$	(69)	$	(102)
Currency exchange contracts		156		4		108		(28)
Commodity contracts		(2)		(1)		(2)		(1)
Total(a)	$	157	$	(8)	$	37	$	(131)

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
	for the three months ended March 31				for the three months ended March 31
(In millions)	2014		2013		2014		2013

Currency exchange contracts(a)	$	(1,033)	$	2,105	$	10	$	(124)

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