EX-99.F 8 exhibit99f.htm EXHIBIT 99(F) exhibit99f.htm
Exhibit 99(f)
 
General Electric Capital Corporation and consolidated affiliates
Schedule I – Condensed Financial Information of Registrant
General Electric Capital Corporation
Condensed Statement of Current and Retained Earnings
 

For the years ended December 31 (In millions)
2011 
 
2010 
 
2009 
 
 
 
 
 
 
 
 
 
Revenues
$
9,740 
 
$
3,945 
 
$
4,893 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
Interest
 
4,344 
 
 
3,571 
 
 
9,406 
Operating and administrative
 
3,148 
 
 
2,995 
 
 
3,639 
Provision for losses on financing receivables
 
109 
 
 
1,030 
 
 
1,672 
Depreciation and amortization
 
192 
 
 
193 
 
 
374 
      Total expenses
 
7,793 
 
 
7,789 
 
 
15,091 
 
 
 
 
 
 
 
 
 
Loss before income taxes and equity in earnings of affiliates
 
1,947 
 
 
(3,844)
 
 
(10,198)
Income tax benefit
 
2,230 
 
 
1,755 
 
 
4,495 
Equity in earnings of affiliates
 
2,333 
 
 
4,244 
 
 
7,118 
 
 
 
 
 
 
 
 
 
Net earnings
 
6,510 
 
 
2,155 
 
 
1,415 
Dividends(a)
 
– 
 
 
– 
 
 
– 
Others(a)(c)
 
– 
 
 
50 
 
 
(24)
Retained earnings at January 1(b)
 
45,068 
 
 
42,863 
 
 
43,117 
 
 
 
 
 
 
 
 
 
Retained earnings at December 31
$
51,578 
 
$
45,068 
 
$
44,508 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)  
Total dividends and other transactions with the shareowner increased (decreased) equity by $1 million, $85 million and $9,488 million in 2011, 2010 and 2009, respectively.
 
(b)  
The 2010 opening balance was adjusted as of January 1, 2010 for the cumulative effect of changes in accounting principles of $1,645 million related to the adoption of Accounting Standards Update (ASU) 2009-16 & 17. The 2009 opening balance was adjusted as of April 1, 2009, for the cumulative effect of changes in accounting principles of $62 million related to adopting amendments on impairment guidance in Accounting Standards Codification (ASC) 320, Investments – Debt and Equity Securities. The cumulative effect of adopting ASC 825 at January 1, 2008, was insignificant.
 
(c)  
Includes the effects of accretion of redeemable securities to their redemption value of $38 million in 2010 and $(23) million in 2009.
 

 
See accompanying notes.
 


 
 
 

General Electric Capital Corporation and consolidated affiliates
Schedule I – Condensed Financial Information of Registrant – (Continued)
General Electric Capital Corporation
Condensed Statement of Financial Position
 

At December 31 (In millions, except share amounts)
2011 
 
2010 
 
 
 
 
 
 
Assets
 
 
 
 
 
Cash and equivalents
$
13,482 
 
$
12,847 
Investment securities
 
8,716 
 
 
6,706 
Financing receivables - net
 
50,822 
 
 
60,379 
Investment in and advances to affiliates
 
255,652 
 
 
259,330 
Property, plant and equipment - net
 
1,213 
 
 
1,581 
Other assets
 
23,856 
 
 
26,025 
Total assets
$
353,741 
 
$
366,868 
 
 
 
 
 
 
Liabilities and equity
 
 
 
 
 
Borrowings
$
267,426 
 
$
284,511 
Other liabilities
 
6,197 
 
 
10,277 
Deferred income taxes
 
3,008 
 
 
3,096 
    Total liabilities
 
276,631 
 
 
297,884 
 
 
 
 
 
 
Common stock, $14 par value (4,166,000 shares authorized at
 
 
 
 
 
    December 31, 2011 and 2010 and 1,000 shares issued and
 
 
 
 
 
        outstanding at December 31, 2011 and 2010, respectively)
 
– 
 
 
– 
Accumulated gains (losses) - net
 
 
 
 
 
    Investment securities
 
(33)
 
 
(639)
    Currency translation adjustments
 
(399)
 
 
(1,411)
    Cash flow hedges
 
(1,101)
 
 
(1,281)
    Benefit plans
 
(563)
 
 
(380)
Additional paid-in capital
 
27,628 
 
 
27,627 
Retained earnings
 
51,578 
 
 
45,068 
    Total shareowner's equity
 
77,110 
 
 
68,984 
Total liabilities and equity
$
353,741 
 
$
366,868 
 
 
 
 
 
 
 
 
 
 
 
 
The sum of accumulated gains (losses) on investment securities, currency translation adjustments, cash flow hedges and benefit plans constitutes “Accumulated other comprehensive income,” and was $(2,096) million and $(3,711) million at December 31, 2011 and 2010, respectively.
 
See accompanying notes.

 
 
 

General Electric Capital Corporation and consolidated affiliates
Schedule I – Condensed Financial Information of Registrant – (Continued)
General Electric Capital Corporation
Condensed Statement of Cash Flows
 

For the years ended December 31 (In millions)
2011 
 
2010 
 
2009 
 
 
 
 
 
 
 
 
 
Cash from (used for) operating activities
$
5,386 
 
$
(3,408)
 
$
(1,045)
Cash flows - investing activities
 
 
 
 
 
 
 
 
Increase in loans to customers
 
(71,863)
 
 
(81,145)
 
 
(96,837)
Principal collections from customers - loans
 
78,261 
 
 
89,835 
 
 
99,779 
Investment in equipment for financing leases
 
(696)
 
 
(1,447)
 
 
(1,239)
Principal collections from customers - financing leases
 
3,576 
 
 
2,783 
 
 
1,814 
Net change in credit card receivables
 
(28)
 
 
(1,182)
 
 
5 
Additions to property, plant and equipment
 
(892)
 
 
(1,073)
 
 
(158)
Dispositions of property, plant and equipment
 
811 
 
 
871 
 
 
780 
Payments for principal businesses purchased
 
(50)
 
 
(559)
 
 
(6,791)
Proceeds from principal business dispositions
 
2,623 
 
 
1,171 
 
 
9,088 
Increase in investment in and advances to affiliates
 
3,258 
 
 
15,642 
 
 
26,868 
All other investing activities
 
1,399 
 
 
(624)
 
 
(2,136)
 
 
 
 
 
 
 
 
 
Cash from (used for) investing activities
 
16,399 
 
 
24,272 
 
 
31,173 
 
 
 
 
 
 
 
 
 
Cash flows - financing activities
 
 
 
 
 
 
 
 
Net decrease in borrowings (maturities of 90 days or less)
 
371 
 
 
(6,141)
 
 
(25,662)
Newly issued debt
 
 
 
 
 
 
 
 
    Short-term (91-365 days)
 
– 
 
 
– 
 
 
3,310 
    Long-term (longer than one year)
 
23,049 
 
 
18,325 
 
 
62,213 
Repayments and other debt reductions:
 
 
 
 
 
 
 
 
    Short-term (91-365 days)
 
(42,693)
 
 
(48,818)
 
 
(57,941)
    Long-term (longer than one year)
 
(1,671)
 
 
(1,140)
 
 
(533)
    Non-recourse, leveraged leases
 
(206)
 
 
(341)
 
 
(317)
Capital contributions from GECS
 
– 
 
 
– 
 
 
9,500 
Other
 
– 
 
 
(19)
 
 
9 
 
 
 
 
 
 
 
 
 
Cash from (used for) financing activities
 
(21,150)
 
 
(38,134)
 
 
(9,421)
 
 
 
 
 
 
 
 
 
Increase (decrease) in cash and equivalents during year
 
635 
 
 
(17,270)
 
 
20,707 
Cash and equivalents at beginning of year
 
12,847 
 
 
30,117 
 
 
9,410 
Cash and equivalents at end of year
$
13,482 
 
$
12,847 
 
$
30,117 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See accompanying notes.
 

 
 
 

General Electric Capital Corporation and consolidated affiliates
Schedule I – Condensed Financial Information of Registrant – (Concluded)
General Electric Capital Corporation
Notes to Condensed Financial Statements
 

 
Financial statements presentation
 
We have reclassified certain prior-year amounts to conform to the current year’s presentation.

Borrowings
 
Total long-term borrowings at December 31, 2011 and 2010, are shown below.

 
2011 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
December 31 (Dollars in millions)
rate(a)
 
Maturities
 
2011 
 
2010 
 
 
 
 
 
 
 
 
 
 
 
Senior notes
 
3.59 
 
2013-2055
 
$
139,869 
 
$
186,443 
Subordinated notes(b)
 
3.41 
 
2013-2037
 
 
4,845 
 
 
2,556 
Subordinated debentures(c)
 
6.67 
 
2066-2067
 
 
7,215 
 
 
7,298 
Other
 
 
 
 
 
 
3,044 
 
 
1,481 
 
 
 
 
 
 
$
154,973 
 
$
197,778 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Based on year-end balances and year-end local currency interest rates, including the effects of related interest rate and currency swaps, if any, directly associated with the original debt issuance.
 
(b)
Included $417 million of subordinated notes guaranteed by GE both at December 31, 2011 and 2010, of which $117 million is included in current portion of long-term borrowings at December 31, 2011.
 
(c)  
Subordinated debenture receive rating agency equity credit and were hedged at issuance to USD equivalent of $7,725 million.
 

 
At December 31, 2011, maturities of long-term borrowings during the next five years, including the current portion of long-term debt, are $68,796 million in 2012, $26,219 million in 2013, $19,145 million in 2014, $13,758 million in 2015 and $12,193 million in 2016.

Interest rate and currency risk is managed through the direct issuance of debt or use of derivatives. We mitigate interest rate and currency risk by seeking to ensure that the characteristics of the debt match the assets they are funding. We use a variety of instruments, including interest rate and currency swaps and currency forwards, to achieve our interest rate objectives.

Interest expense on the Condensed Statement of Current and Retained Earnings is net of interest income on loans and advances to majority owned affiliates of $2,848 million, $4,699 million and $2,956 million for 2011, 2010 and 2009, respectively.

Income taxes
 
General Electric Company files a consolidated U.S. federal income tax return which includes General Electric Capital Corporation. Income tax benefit (expense) includes our effect on the consolidated return.

Dividends from affiliates
 
In 2011 and 2010, we did not receive any dividends from other affiliates. In 2009, we received dividends of $113 million from other affiliates.